Fed's Hammack said the jobs report confirms the labor market is broadly balanced.

Japan's holdings of overseas securities fell $75.6 billion in May from April, implying the government sold foreign assets, including US Treasuries, to help finance last month's record foreign-exchange intervention. Finance Ministry data showed foreign reserves dropped to $1.09 trillion at end-May, while foreign-currency deposits — another potential funding source — were largely unchanged at $162 billion. Separately, intervention in the month through May 28 totaled a record ¥11.73 trillion (about $73.4 billion).

Sources say the United States, Mexico and Canada are set to miss the July 1, 2026 deadline to formally renew the United States-Mexico-Canada Agreement (USMCA), likely triggering months-to-years of negotiations over auto rules-of-origin, tariffs and other sector rules. The pact, signed under Trump, requires a joint review in July 2026; after the review the parties can renew for 16 years, withdraw, or neither (which would activate an annual rolling-review mechanism). If no agreement to renew is reached, the agreement remains in force under current terms until at least 2036 unless a party withdraws and will enter yearly rolling review. Officials close to the process say the neither-renew-nor-withdraw outcome is the most likely scenario and that a US refusal to formally renew would push the three parties into protracted negotiations and leave the pact’s future indefinitely uncertain.