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Wall Street Doubts Jobs Report; Consumers Pay Tariffs

The Department of Homeland Security (DHS) announced the end of its "surge operation" in Minneapolis, while also revealing that a small contingent of personnel will remain in the Twin Cities, according to The Verge. This news comes as the Federal Reserve released research indicating that U.S. businesses and consumers bore nearly 90 percent of the cost of Donald Trump's tariffs last year, as reported by Ars Technica. Meanwhile, the job market continues to be a point of contention, with some Wall Street analysts questioning the latest numbers released by the U.S. Bureau of Labor Statistics, as noted by Fortune.

The DHS's decision to scale back its operation in Minneapolis was announced by border czar Tom Homan, who stated that the "surge operation" would conclude, but a small footprint of personnel would remain, according to The Verge. This announcement follows a period of heightened scrutiny and conflict in the Twin Cities.

Simultaneously, the economic impact of tariffs continues to be felt. The Federal Reserve's research, detailed by Ars Technica, revealed that American businesses and consumers shouldered the majority of the tariff costs in 2025. The study's authors wrote in a blog post, "Our results show that the bulk of the tariff incidence continues to fall on US firms and consumers."

In other economic news, the job market's strength is being debated. Fortune reported that some analysts on Wall Street are skeptical of the latest jobs numbers, with some suggesting a potential correction. The strong job market numbers, with unemployment falling from 4.4 to 4.3, have led some analysts to believe the Federal Reserve is less likely to cut interest rates further. However, the article also noted that some analysts are concerned that the labor market is now so tight that the Fed may even raise rates.

Marriott CEO Anthony Capuano told Yahoo! Finance that Americans are prioritizing spending on travel and experiences, even amid economic uncertainty, according to Fortune. Capuano stated, "We continue to see extraordinary demand for travel and experiences."

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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