US News
LAST UPDATE: June 27, 2025
White House Says July 9 Trade Deadline Could Be Extended
On June 26, Press Secretary Karoline Leavitt indicated that the self-imposed July 9 deadline for resolving trade agreements or imposing reciprocal tariffs could be extended, as the President retains discretion to delay and negotiate further. Thus far, only a reciprocal tariff deal with the UK has been finalized, with negotiations ongoing elsewhere.
Insight
The flexibility reflects a pragmatic negotiation approach—keeping pressure on partners while avoiding a cliff-edge tariff surge. However, extensions may also signal disorganization or a weaker bargaining position.
Trump Decision on Next Fed Chair Not Imminent, White House Says
The White House clarified on June 26 that President Trump is not close to naming a successor to Fed Chair Powell, despite speculation of an early appointment. It emphasized that no decision is imminent, though the administration is evaluating several candidates.
Insight
The pushback aims to protect central bank independence and reduce market volatility. Maintaining uncertainty delays political influence on monetary policy while also keeping markets guessing.
Majority of Fed Officials Leaning Against July Interest-Rate Cut
Bloomberg reported that while a few Fed members—such as Waller and Bowman—support a possible rate cut at the July meeting, most officials (including Powell, Daly, Williams) oppose it, citing persistent inflation and unknown impacts from tariffs.
Insight
The Fed remains cautious, prioritizing traction on inflation goals over immediate economic relief. Divergent views expose internal tensions but reinforce a “data-dependent” stance for now.
Fed’s Barr says banks must manage climate risk
Federal Reserve Governor Michael Barr emphasized that banks should integrate climate-related risks into their long-term risk management frameworks, warning climate change poses “financial stability” challenges.
Insight
The call highlights climate risk as a systemic concern. Banks are being proactively encouraged to embed environmental scenarios in stress testing—signaling a shift toward green-financial supervision.
US first-quarter GDP revised lower on tepid consumer spending
The Commerce Department revised Q1 2025 GDP growth downward to 1.5% annualized (from 1.8%), citing sluggish consumer spending, especially on goods and services, while business investment remained moderate.
Insight
The downgrade underscores weakening household demand and suggests the Fed may maintain tighter monetary policy longer. It also tempers optimism about a strong rebound in H2.
Recurring US Jobless Claims Jump to Highest Since November 2021
Weekly continuing jobless claims rose to 1.87 million—the highest since November 2021—suggesting slowing labor market momentum. Initial claims stayed flat at 240,000, pointing to longer unemployment durations.
Insight
The increase signals that laid-off workers are taking longer to find new jobs, hinting at cooling labor demand. This trend could ease wage pressures and support the Fed’s anti-inflation strategy.
US Senate Republicans race to resolve tax, health issues in Trump’s tax bill
Senate Republicans are urgently negotiating key elements of Trump’s tax reform bill—including child tax credits and Obamacare levies—before the July deadline. Concerns remain over cost offsets and health insurance coverage reductions.
Insight
The last-minute rush illustrates internal GOP divisions and electoral pressures. Compromise is likely, but unresolved tensions may impact the bill’s effectiveness and political sustainability.
US Goods Trade Deficit Expanded in May
The U.S. goods trade deficit widened by 3.5% in May to $100.1 billion, driven by a surge in imports of industrial supplies and consumer goods. Exports rose more modestly.
Insight
The growing deficit suggests strong domestic demand but raises concerns about external imbalances. Persistent trade gaps could factor into Trump’s protectionist agenda as talks with trade partners intensify.
