US News
LAST UPDATE: June 3, 2025
Dollar slides towards 3-year low as weak US data stokes economic fears
The US dollar fell by 0.7% on Monday, nearing a three-year low amid weak economic data and increasing concern over America’s growing debt.
Insight
The depreciation of the US dollar reflects mounting investor concerns over the country’s fiscal health and economic trajectory. Weak manufacturing data, coupled with escalating trade tensions, have undermined confidence in the dollar. Additionally, rising yields on US Treasuries indicate apprehension about the government’s ability to manage its debt load. The situation underscores the delicate balance policymakers must maintain to foster economic growth while ensuring fiscal responsibility.
US manufacturing remains subdued in May; delivery times lengthening
U.S. manufacturing activity contracted for the third consecutive month in May 2025, with the Institute for Supply Management (ISM) reporting a PMI of 48.5, down from 48.7 in April.
Insight
The continued contraction in manufacturing signals persistent challenges in the sector, exacerbated by supply chain disruptions and tariff-related uncertainties. Lengthening delivery times suggest bottlenecks that could hinder production and increase costs. The decline in imports and subdued new orders reflect cautious business sentiment. These factors collectively point to a manufacturing sector grappling with both domestic and international pressures, necessitating strategic interventions to revitalize growth.
Trump, Xi will ‘likely’ talk this week: White House
US President Donald Trump and China’s President Xi Jinping will likely hold a long-awaited phone call later this week, the White House said.
Insight
The anticipated conversation between Presidents Trump and Xi comes at a critical juncture in US-China relations, marked by escalating trade tensions and mutual accusations of agreement violations. A direct dialogue could pave the way for de-escalation and renewed negotiations. However, the success of such talks hinges on both parties’ willingness to compromise and address core issues. The outcome will significantly influence global markets and geopolitical dynamics.
US pushes countries for best offers by Wednesday as tariff deadline looms
The Trump administration is pushing trading partners to submit their best trade negotiation offers by Wednesday, ahead of a self-imposed July 8 deadline, as revealed in a draft letter obtained by Reuters.
Insight
This aggressive timeline underscores the administration’s urgency in reshaping trade relationships to align with its “America First” agenda. By setting a firm deadline, the US aims to expedite negotiations and secure favorable terms. However, this approach may strain diplomatic relations and complicate consensus-building. The strategy reflects a broader shift towards unilateralism in trade policy, with potential ramifications for global economic stability.
Small businesses group calls for Trump tariffs to be paused during appeal
A group of small businesses that won a court ruling blocking most of US President Donald Trump’s global tariffs urged Monday for the duties to be paused during the appeal process.
Insight
The call for a pause highlights the significant impact of tariffs on small enterprises, which often lack the resources to absorb increased costs. The legal victory for these businesses underscores the contentious nature of the administration’s tariff strategy. Pausing the duties during the appeal could provide temporary relief and prevent further economic strain. This situation emphasizes the need for balanced trade policies that consider the diverse capacities of domestic stakeholders.
Fed likely on track to lower rates after bumpy period, says Goolsbee
Chicago Fed President Austan Goolsbee indicated that the Federal Reserve might lower short-term interest rates within the next 15 months, assuming economic conditions remain stable and recent tariff policies don’t escalate significantly.
Insight
Goolsbee emphasized that the Fed’s dual mandate—promoting full employment and stabilizing prices—appears achievable, given the strong labor market and manageable inflation, with the personal consumption expenditure price index rising 2.1% in April from a year earlier. However, he cautioned that current inflation figures may not yet reflect the full impact of recently announced tariffs. Drawing from past experiences where the Fed underestimated persistent post-pandemic inflation, Goolsbee expressed hesitancy in assuming that the impact of these levies will be temporary.
Trump Plans to Tap Biden’s Green Bank to Make Billions in Loans
The Trump administration plans to utilize a $400 billion green bank, originally established under President Biden, to finance loans for nuclear reactors, geothermal power, and critical minerals.
Insight
This strategic move signifies a shift in the administration’s approach to energy policy, focusing on bolstering domestic energy production and reducing reliance on foreign sources. By leveraging the green bank, the administration aims to accelerate the development of alternative energy projects, potentially creating jobs and stimulating economic growth. However, this repurposing of funds may face criticism from environmental groups concerned about the emphasis on nuclear and mineral extraction over renewable energy sources. The success of this initiative will depend on balancing economic objectives with environmental considerations.
