In recent news, U.S. applications for unemployment benefits remained steady last week, indicating that layoffs are still low despite ongoing economic uncertainties related to President Donald Trump's tariff policies. According to the Labor Department, the number of Americans filing for unemployment aid was unchanged at 229,000 for the week ending May 10, aligning closely with analysts' predictions of 230,000 new applications. This figure is within the healthy range of 200,000 to 250,000 applications per week, a trend that has persisted since the COVID-19 pandemic significantly impacted the economy five years ago, resulting in massive job losses. The steady rate of jobless claims suggests that the U.S. labor market remains resilient, even as concerns linger about the broader economic implications of Trump's trade policies. While some of Trump's tariff threats have been paused or rolled back, there is still anxiety over a potential global economic slowdown that could destabilize the U.S. labor market, a crucial component of the American economy. Amidst these economic challenges, the Federal Reserve decided to hold its benchmark lending rate at 4.3% for the third consecutive meeting. This decision follows a series of three rate cuts at the end of the previous year. Federal Reserve Chair Jerome Powell highlighted the rising risks of both increased unemployment and inflation, a challenging combination that complicates the Fed's dual mandate to manage price stability and maintain low unemployment rates. Powell noted that while tariffs have negatively affected consumer and business sentiment, significant economic damage has not yet been reflected in the data. In related economic news, the government reported an unexpected drop in wholesale inflation in April, marking the first decline in over a year. However, retail sales data indicated that American consumers reduced their spending in April after previously stocking up on goods in anticipation of tariff-induced price hikes. This consumer behavior reflects the ongoing uncertainty and cautiousness surrounding the economic impact of tariffs. The trade tensions between the U.S. and China saw a temporary reprieve as both countries agreed to a 90-day pause in their trade war, providing some relief to financial markets and easing concerns about tariffs' effects on the U.S. economy. President Trump is aiming to reshape the global economic landscape by significantly increasing import taxes to revive the U.S. manufacturing sector. However, these trade policies have already contributed to a contraction in the U.S. economy, which shrank at an annual rate of 0.3% from January to March. This contraction was partly due to a surge in imports as U.S. companies rushed to acquire foreign goods before the imposition of Trump's substantial tariffs. In addition to trade-related economic measures, Trump has pledged to significantly reduce the federal government workforce, a promise that has been a focal point during the initial weeks of his second term. The Department of Government Efficiency, or "DOGE," led by billionaire Tesla CEO Elon Musk, is spearheading efforts to downsize federal employment. While the impact of these job cuts on weekly layoffs data is not yet clear, many of the reductions are being contested in court. Nevertheless, the effects of federal staff reductions are already being felt beyond the Washington, D.C., area. Despite some signs of economic weakening over the past year, the U.S. labor market remains robust, characterized by abundant job opportunities and relatively few layoffs. Earlier this month, the government reported a surprisingly strong addition of 177,000 jobs in April, with the unemployment rate holding steady at a historically low 4.2%. However, many economists predict that the adverse effects of trade wars will manifest this year, potentially impacting American workers. In the corporate sector, notable companies have announced job cuts. On Tuesday, Microsoft revealed plans to lay off approximately 6,000 employees, nearly 3% of its workforce, marking its largest round of job cuts in over two years as the company invests heavily in artificial intelligence. Other companies announcing layoffs this year include Workday, Dow, CNN, Starbucks, Southwest Airlines, and Facebook's parent company, Meta. The Labor Department's report also noted that the four-week average of jobless claims, which helps smooth out week-to-week fluctuations, rose by 3,250 to 230,500. Additionally, the total number of Americans receiving unemployment benefits for the week of May 3 increased by 9,000 to 1.88 million. Overall, while the U.S. labor market displays resilience, uncertainty surrounding trade policies and global economic conditions continues to pose potential risks, necessitating close monitoring of economic indicators and labor