US News
LAST UPDATE: May 16, 2025
Powell Signals 2020 Fed Framework Language on Chopping Block
Bloomberg
Federal Reserve Chair Jerome Powell indicated a shift in monetary policy, suggesting that the Fed may revise its 2020 framework to prioritize controlling inflation amid persistent supply shocks.
Insight
This potential policy change reflects the Fed's adaptation to evolving economic conditions, aiming to maintain price stability and economic growth.
Fed's Barr says economy on solid footing, trade dispute clouds outlook
Reuters
Federal Reserve Governor Michael Barr stated that the U.S. economy is on solid footing with inflation approaching the 2% target. However, he noted that ongoing trade disputes are creating uncertainties that could impact economic stability.
Insight
While the domestic economy shows resilience, external factors like trade tensions pose risks that could affect future economic performance and policy decisions.
US poised to dial back bank rules imposed in wake of 2008 crisis
Financial Times
The US government is preparing to ease the supplementary leverage ratio (SLR) for banks, a key post-2008 regulation requiring large banks to hold more high-quality capital. This move is part of a broader deregulatory push, aiming to boost liquidity and lending capacity.
Insight
Easing SLR requirements signals a major regulatory shift. While it may increase credit availability, it also raises concerns about weakening the safeguards designed to prevent a repeat of the 2008 crisis. Policymakers must balance economic stimulus against systemic financial risks.
US weekly jobless claims unchanged amid stable labor market
Reuters
US weekly jobless claims remained steady at 229,000, reflecting ongoing labor market stability. Continued claims rose slightly, indicating some softness, but overall layoffs remain historically low, despite uncertainties in the economy.
Insight
Stable jobless claims indicate resilience in the US labor market, though hiring hesitancy and economic uncertainties persist. Monitoring future jobless trends is crucial for assessing the true strength of the economic recovery amid ongoing trade and policy uncertainties.
US Producer Prices Fall Unexpectedly as Margins Decline
Reuters
US producer prices dropped by 0.5% in April 2025, led by declines in services and goods costs. This marks the largest monthly decrease since 2009, and year-on-year PPI growth slowed to 2.4%. Lower producer prices may signal easing inflationary pressures in the broader economy.
Insight
The fall in producer prices points to weakening demand and could ease pressure on the Federal Reserve regarding interest rate hikes. However, persistent cost declines may also indicate slowing economic momentum or risks of deflation if the trend continues.
US Factory Output Declines for the First Time in Six Months
Reuters
US manufacturing output declined by 0.4% in April 2025, mainly due to a sharp fall in auto production. This is the first decline in six months and highlights ongoing challenges from global supply chain disruptions and tariff-related pressures on manufacturing sectors.
Insight
The dip in factory output signals that US manufacturing is still vulnerable to external shocks and policy shifts. The sector faces hurdles from tariffs, high input costs, and shifting global demand, which could impact broader economic recovery if persistent.
GOP Tax Chair Says SALT Lawmakers Should Take $30,000 Limit
Bloomberg
Jason Smith, GOP chair of the House Ways and Means Committee, stated that lawmakers from high-tax states should accept the $30,000 cap on state and local tax (SALT) deductions, signaling no major changes ahead in this area of federal tax policy.
Insight
The statement reinforces a tough stance on SALT deduction limits, likely affecting high-income taxpayers in high-tax states. It sets the tone for ongoing debates about tax fairness and federal fiscal policy, with possible political ramifications in states most affected by the cap.
Trump Targets Billions in Energy Grants for New Round of Audits
Bloomberg
The Trump administration plans to audit over $15 billion in energy grants awarded during the Biden administration, focusing on projects related to power grid upgrades and energy technology manufacturing.
Insight
This initiative reflects a broader effort to reassess previous administration policies and expenditures, potentially impacting the direction of US energy policy and funding priorities.
GOP Tax Bill Seen Masking More Than $1 Trillion US Debt Hit
Bloomberg
A proposed Republican tax bill, officially estimated to cost $3.8 trillion over ten years, may conceal an actual increase of over $1 trillion in US debt, according to analysts. The bill includes provisions like tax cuts and spending adjustments.
Insight
The legislation raises concerns about fiscal responsibility and transparency, highlighting the challenges of balancing tax reforms with long-term debt sustainability.
