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.

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.”

📈 Economic Indicators

The BEA releases the personal consumption expenditures price index for May.

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.

• 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

• Starbucks Elects Two Board Members Including Former Yahoo CEO Marissa Mayer
• Walgreens Sales Rise on Improvements in U.S. Healthcare Segment, Cost Cutting Efforts
• Longtime Musk Aide and Fixer Omead Afshar Leaves Tesla
• Exclusive: CoreWeave in Talks to Buy Core Scientific
• You Know Who Else Wants You Back in the Office? Catering Companies.
• Exclusive: Trump Goes to Bat for Big Oil on Climate Rules in EU Trade Talks
• David Murdock, Corporate Investor Who Made Nutrition an Obsession, Dies at 102
• Truck Operators Were Hoping for a Recovery. Instead They Got a Trade War.

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.

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