Jobs report, Inflation Reduction Act, Nancy Pelosi in Tokyo: 5 things to know Friday

Economy adds 528,000 jobs in July as hiring surges despite high inflation, slowing growth

U.S. employers added a booming 528,000 jobs in July as the labor market continued to defy soaring inflation, rising interest rates and a slowing economy.The unemployment rate from 3.6% to 3.5%, matching a 50-year low, the Labor Department said Friday. Economists had estimated that 250,000 jobs were added last month, according to a Bloomberg survey. Inflation hit a 40-year high of 9.1% in June, keeping the Federal Reserve on course to aggressively raise interest rates. The higher prices and borrowing costs have led consumers and businesses to slow spending and stoked recession fears. But the labor market has shrugged off the turmoil, adding an average of about 380,000 jobs a month from March through June.

• U.S. wage growth: Rising retail, restaurant, fast-food wages make hiring tougher for manufacturing, construction, health care

• Surveys say: Employers leaning more into hiring those with skills versus experience

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Sen. Kyrsten Sinema's support sets up the Inflation Reduction Act

Sen. Kyrsten Sinema, D-Ariz., announced late Thursday that she would "move forward" to give Senate Democrats the support they need on the Inflation Reduction Act that they're looking to pass this week. Sinema, the last Democratic holdout on the bill, said Democrats had agreed to remove a provision raising taxes on "carried interest," or profits that go to executives of private equity firms, resolving a key difference that had held back her support. Democrats hope to pass the bill on a party-line vote through a process known as budget reconciliation that would allow approval with a simple majority and avoid the 60-vote threshold to overcome a Republican filibuster. It would need the support of all Democrats in the evenly split Senate.

• With window closing, Sen. Joe Manchin, Senate Leader Schumer reach deal on energy, drug prices, taxes

• Sen. Ron Johnson calls for subjecting Medicare and Social Security to annual budget talks

China halts climate, military ties with US over Pelosi’s Taiwan visit

China on Friday said it is canceling or suspending dialogue with the United States on a range of issues from climate change to military relations and anti-drug efforts in retaliation for a visit this week to Taiwan by House Speaker Nancy Pelosi. Pelosi was in Tokyo Friday on the final leg of an Asia tour highlighted by a visit to Taiwan that infuriated China. China views Taiwan as part of its territory, though Taiwan sees itself as a sovereign country. Pelosi met with Japanese Prime Minister Fumio Kishida for breakfast Friday in Tokyo. Kishida said that China's military exercises aimed at Taiwan prompted by Pelosi's visit represent a “grave problem” that threatens regional peace and security after five ballistic missiles launched as part of the drills landed in Japan's exclusive economic zone. Pelosi, the first House speaker to visit Taiwan in 25 years, said her trip to Taiwan was not intended to change the status quo for the island but to maintain peace in the Taiwan Strait.

• In South Korea, Nancy Pelosi avoids public comments on Taiwan, China

• Pelosi gives strong backing to Taiwan's democracy; US braces for Chinese military drills

Musk response to Twitter lawsuit to be made public

Elon Musk’s answer to Twitter’s lawsuit over his attempt to back out of a $44 billion deal to buy the social media company will be made public by Friday evening at the latest, a judge ruled Wednesday. Attorneys for Musk wanted to file a public version of their answer and counterclaims in Delaware court Wednesday. But Twitter attorneys complained that they needed more time to review and potentially redact Musk’s sealed filing, saying it refers “extensively” to internal Twitter information and data given to Musk. Chancellor Kathaleen St. Jude McCormick held a teleconference Wednesday before agreeing with Twitter, directing that the public filing be docketed by 5 p.m. Friday. Twitter attorneys argued that court rules require that five business days lapse before a public version of Musk's filing is docketed.

• Elon Musk isn't the first to walk away from a deal: Here's how similar cases have ended

• Who is Elon Musk?: What to know about the Tesla CEO who wanted to buy Twitter

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GOP set to pick 2024 convention host city

The midterm elections are still three months away, but the Republican Party is making plans for 2024. The GOP is expected to select the host city for its next national convention Friday, with Milwaukee the likely choice. A site-selection panel voted to recommend Milwaukee last month, and the city's Common Council has approved a framework agreement for the event. Nashville, Tennessee, was the other finalist, but appeared to be out of the running after local leaders this week voted down a draft agreement to host. But while Tennessee is solidly Republican, Wisconsin is a key swing state that Donald Trump won in 2016 and Joe Biden carried in 2020. Democrats picked Milwaukee for their convention in 2020, but it turned into a mostly virtual event due to the pandemic.

• Is Trump still the GOP power broker? Primaries show he retains a degree of control over the party

• Looking to November: Kansas abortion vote could be a warning sign to Republicans

Contributing: Associated Press

This article originally appeared on USA TODAY: Jobs report, Inflation Reduction Act, Nancy Pelosi: 5 things to know Friday