US News
LAST UPDATE: June 10, 2025
US wholesale inventories in April revised higher
Reuters
U.S. wholesale inventories grew by 0.2% in April (previously reported as flat), driven by a 1.3% surge in prescription drug stockpiles as businesses front-loaded ahead of potential tariffs. Inventory-to-sales ratio remained at 1.30 months, while sales modestly increased by 0.1%.
Insight
The upward revision indicates companies are building inventory buffers, especially in pharmaceuticals, in response to tariff risks. While reducing imports contracted the trade deficit, inventories may dampen second-quarter GDP growth. These data suggest continued caution among wholesalers amid policy uncertainty.
Inflation Expectations Declined Across All Horizons, NY Fed Says
New York Fed survey shows median inflation expectations for 1-, 3-, and 5-year horizons decreased in May: 1‑year ahead fell to 3.2% from 3.6%, 3‑year to 3.0% (–0.2 pp), and 5‑year to 2.6% (–0.1 pp). Households also report lower inflation uncertainty.
Insight
Cooling inflation expectations suggest public confidence in the Fed’s actions. The widespread decline across demographics hints at weakening inflation pressures and moderated wage growth outlooks. This shift may give policymakers more flexibility, potentially allowing interest-rate cuts without stoking inflation.
SEC plan says existing staff cuts help meet DOGE targets
According to a planning memo to the White House, the SEC has reduced over 550 authorized positions through voluntary early retirements and resignations, bringing its headcount to about 4,300. The agency is requesting funding to maintain around 4,100 staff next fiscal year.
Insight
The SEC’s staffing reductions reflect efforts to fulfill the Trump‑and‑Musk-backed Department of Government Efficiency mandate. While cuts may trim costs, critics warn they could hinder the SEC’s responsiveness, oversight, and enforcement capacity. Balancing lean government with regulatory effectiveness remains a core challenge.
CEOs, Trump to Tout Child Investment Accounts in GOP Tax Bill
At a White House event, CEOs from companies including Uber, Goldman Sachs, Salesforce, and Dell endorsed Trump’s plan to establish $1,000 tax-deferred investment accounts for children born between 2025 and 2028, with companies pledging matching contributions.
Insight
The “Trump Accounts” initiative blends public policy with private backing, aiming to foster long-term savings and financial literacy from birth. Business participation strengthens the narrative of corporate responsibility. However, critics argue the policy may be insufficient to address immediate poverty and could widen inequality if not paired with broader support. Senate approval remains crucial.
Mexican president condemns violence in Los Angeles protests
President Sheinbaum condemned violence during protests in Los Angeles against immigration raids, calling for peaceful action by the Mexican community and for U.S. authorities to uphold due process, noting that 42 Mexicans have been detained and four deported.
Insight
Sheinbaum’s stance balances solidarity with migrant communities and calls for legal restraint. By influencing U.S. authorities to respect legal norms, she seeks to project diplomatic leadership during tensions. This statement also signals Mexico’s concern for its diaspora and a desire to prevent negative fallout from the protests.
Trump ratchets up threats over Los Angeles protests
Former President Trump issued a stark warning to Los Angeles officials, threatening to withhold federal funding over their handling of anti-immigration protests, accusing authorities of permitting “chaos” on city streets.
Insight
Trump’s statement escalates tensions between federal and local authorities, using financial leverage as a tool to assert political influence. It highlights a growing strategy of tying federal funding to local compliance with immigration enforcement, potentially deepening city-state polarization and triggering legal/constitutional challenges over federal overreach.
