US News
LAST UPDATE: May 28, 2025
Fed’s Williams calls for strong response if inflation deviates from target
NY Fed President John Williams emphasized the need for decisive action if inflation strays from targets, highlighting risks from economic uncertainties and trade policies.
Insight
Williams’ remarks underscore the Fed’s commitment to maintaining price stability amid volatile economic conditions. His caution about unanchored inflation expectations reflects concerns over persistent inflation, necessitating vigilant monetary policy responses.
How Tariffs Distorted First-Quarter GDP
U.S. GDP contracted by 0.3% in Q1 2025, largely due to disruptions from unpredictable tariff changes on Chinese imports, leading to increased costs and logistical challenges.
Insight
The contraction highlights the adverse effects of erratic trade policies on economic performance. Businesses faced increased costs and supply chain disruptions, contributing to the GDP decline. While a rebound is expected in Q2, the situation underscores the need for stable trade policies to support economic growth.
Musk Says He’s ‘Disappointed’ That Trump Tax Bill Raises Deficit
Elon Musk has expressed disappointment with President Donald Trump’s tax bill, criticizing it for increasing the federal deficit and undermining efforts to reduce government spending.
Insight
Musk’s critique reflects growing concerns among business leaders about fiscal responsibility and the long-term implications of tax policies. The increased deficit may lead to higher borrowing costs and reduced fiscal flexibility. Musk’s stance also indicates a divergence between some corporate perspectives and current government policies, potentially influencing public discourse on economic priorities.
