US News
LAST UPDATE: July 2, 2025
Trump says he has ‘two or three’ choices to replace Fed’s Powell
President Trump stated he has “two or three” leading contenders to succeed Jerome Powell (term ends May 2026) as Fed Chair, with names including Kevin Warsh, Kevin Hassett, Scott Bessent, David Malpass, and Christopher Waller .
Insight
Trump’s early signaling of potential Fed picks may influence financial markets and fuel speculation about monetary policy direction, while testing norms around central bank independence.
US Treasury chief says he thinks Fed could lower interest rates by September
Treasury Secretary Scott Bessent expressed belief that the Fed could cut interest rates by September, citing the argument that tariffs weren’t inflationary .
Insight
A rate cut by fall would mark a shift toward monetary easing, aligning Treasury messaging with administration calls. However, actual decisions depend on incoming inflation and economic data.
Trump Tax Bill Hits Republican Resistance in House Ahead of Vote
Moderate and ultra-conservative Republican lawmakers are pushing back against Trump’s sweeping tax and spending bill ahead of the House vote, citing concerns over deep Medicaid cuts, reduced social programs, and elevated deficit implications.
Insight
The resistance underscores internal GOP divisions—between fiscal hawks wary of deficit growth and populists wanting aggressive tax cuts—suggesting significant amendments may be needed to secure passage.
What’s in the Trump Tax Bill Passed by the Senate?
The Senate-passed “One Big Beautiful Bill” includes $4.5 trillion in tax cuts—permanent Trump-era individual and corporate rate reductions, expanded child tax credits, and business deductions. It offsets costs via Medicaid and SNAP cuts, while increasing funding for defense and immigration enforcement.
Insight
The bill cements Trump-era fiscal philosophy—aggressive tax relief for families and businesses—while curbing welfare spending. Its passage in the Senate marks a legislative milestone, though it faces House resistance.
Despite last-minute changes, US Senate bill deals big blow to renewable energy
The Trump-backed Senate tax bill limits eligibility for renewable energy tax credits to projects started before 2026. This phaseout threatens wind and solar pipeline investments and could trigger job losses in clean energy sectors.
Insight
The revised tax code reflects a sharp policy shift, prioritizing fossil fuel production over decarbonization. It risks stalling the U.S. energy transition and undermines climate targets set under previous administrations.
Factory Activity Improves Slightly
The ISM manufacturing PMI rose marginally to 49.0 in June from 48.5 in May—still in contraction territory—for the fourth consecutive month. Improvements were seen in inventories and production, partially offsetting declines in new orders and employment. Tariff-driven input-price pressures hit a three-year high.
Insight
The uptick signals a slight stabilization in factory output, but the persistence of challenges—especially from trade uncertainty, employment weakness, and elevated costs—suggests the recovery remains fragile. Firms are cautious about hiring or expanding amid unclear tariff and economic policy outlooks.
Big Banks Raise Dividends, Boost Buybacks After Less-Stressful Stress Test
After passing a relatively mild Fed stress test, major U.S. banks—like JPMorgan, Citigroup, and Wells Fargo—announced plans to boost dividends and authorize multi-billion-dollar stock buybacks.
Insight
The capital return plans reflect confidence in financial strength and a more relaxed regulatory environment. However, critics argue it may reduce lending capacity or divert funds from risk buffers amid global uncertainty.
