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Trump Administration Asks McKinsey, BCG to Justify Consulting Contracts | | | | |
| Good morning, CFOs. The Trump administration told half a dozen firms it assumes most of their work is "not core"; EU considers lowering tariffs on U.S. imports; and uncertainty builds regarding the July meeting of Fed policymakers. | |
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| |  | | The headquarters of the General Services Administration. PHOTO: MARK SCHIEFELBEIN/AP | | | | |
| Exclusive: The Trump administration Thursday asked McKinsey, BCG and several other firms with billions of dollars in federal contracts to justify their work—and suggest cost cuts. The General Services Administration sent a letter making the demands to leaders of about a half dozen consulting companies, according to a person familiar with the matter and a copy of the letter reviewed by The Wall Street Journal. The new round of scrutiny is part of a broad review of government spending on consultants, tech providers and other contractors working with federal agencies. "Our objective is to critically evaluate which engagements deliver genuine value," the GSA's Josh Gruenbaum, who serves as commissioner of the Federal Acquisition Service, wrote to the firms Thursday. "In keeping with this Administration's laser focus on fiscal responsibility, our baseline presumption is that most, if not all, of these contracted services are not core to agency missions." | |
| | | Content from our sponsor: Deloitte |  | | Dollar's Slide Defies Oil and Rate Trends | | Despite falling oil prices and diverging monetary policies, the U.S. dollar is declining as trade policy uncertainty and euro ambitions drive shifts in global currency markets. Read More | | | | | | |
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| 📈 Economic Indicators The BEA releases the personal consumption expenditures price index for May. | |
| | What Else Matters to CFOs | | |
| |  | | European Commission President Ursula von der Leyen PHOTO: OMAR HAVANA/GETTY IMAGES | | | | |
| The European Union is considering lowering tariffs on a range of U.S. imports in a bid to clinch a speedy trade deal with President Trump, according to people familiar with the matter. EU leaders are set to debate how much they are willing to sacrifice to win over Trump at a meeting in Brussels on Thursday evening. Other concessions under consideration include lowering nontariff barriers, buying more American products including liquefied natural gas, and offering to cooperate with the U.S. to tackle its economic concerns about China. | |
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- The U.S. and other countries reached an agreement to exempt U.S.-based companies from some corporate taxes that were part of a 2021 international minimum-tax agreement, Treasury Secretary Scott Bessent said Thursday.
- The S&P 500 and Nasdaq composite on Thursday closed just below their all-time highs, extending a head-spinning round-trip from the stock-market rout in April.
- Nike's profit plunged in its latest quarter after sales fell 12% and the sportswear brand worked to clear aged inventory and crank up marketing to jumpstart its turnaround under a new chief executive.
- Consumers are showing resilience amid economic uncertainty and higher prices, adjusting their shopping habits and cooking more meals at home, according to McCormick & Co. Chief Executive Brendan Foley.
📰 Other headlines | |
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| | | "This is the most divided they've been in a good while." | | —Deutsche Bank economist Matthew Luzzetti, as two Trump-appointed Fed governors recently opened the door to rate cuts, which would likely collide with a larger group of Fed officials who remain reluctant to ease policy. | | | | | |
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| The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy. Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew. You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com. | |
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