US News
LAST UPDATE: July 25, 2025
US Jobless Claims Fall for a Sixth Week, Lowest Since Mid‑April
U.S. jobless claims fell by 4,000 to 217,000 for the week ending July 19—marking the sixth straight weekly decline and the lowest level since mid‑April.
Insight
The persistent decline signals ongoing resilience in the labor market, suggesting the Fed may keep interest rates steady in the near term to prevent overheating.
US business activity rises; tariffs fuel inflation concerns
U.S. business activity increased in July, driven by services growth, even as manufacturing activity slipped below the neutral threshold. Tariff-related cost pressures were cited by nearly two-thirds of manufacturers and significantly by service firms, raising inflation concerns.
Insight
The mixed picture implies rising inflation risk as companies pass on tariff-induced costs, while consumer demand remains steady. The Fed is likely to hold rates amid this divergence.
US new home sales below expectations in June; housing supply rises
June new single-family home sales rose modestly to 627,000 units, missing the forecast of 650,000. Sales were down 6.6% from June 2024, while inventory grew to its highest level since 2007—9.8 months’ supply—pushing median price down to $401,800.
Insight
Despite upward home pricing, affordability pressures persist. Elevated mortgage rates (~7%) and rising inventory point to cooling demand and sluggish residential sector activity.
Trump to tour Fed as war on central bank chief ramps up
President Trump visited the Federal Reserve to criticize its $3.1B headquarters renovation and intensify pressure on Chair Powell to cut rates by up to 3 percentage points. He later tempered rhetoric, saying he does not intend to fire Powell.
Insight
The rare presidential visit underscores institutional tension and signals executive impatience with the Fed’s policy stance. It raises concerns over respect for Federal Reserve independence.
Risk of Tighter Money Reignites Debate Over the Fed Funds Rate
Shrinking liquidity in the financial system is reigniting debate about the adequacy of current Fed funds rate benchmarks, with some analysts warning of tighter monetary conditions ahead amid pulling reserves.
Insight
The tightening debate reflects shifting dynamics in money markets: future rate decisions may need recalibration based on liquidity conditions—not just inflation or labor metrics.
US Senate committee approves Trump’s UN envoy pick, nomination heads to full vote
The Senate Foreign Relations Committee approved Mike Waltz (Trump’s choice for UN envoy) by a 12‑10 vote. Senator Jeanne Shaheen crossed party lines after securing disaster aid pledges. The nomination moves to a full Senate vote.
Insight
The decision illustrates bipartisan negotiation dynamics. Waltz, a former security aide, must now win broader support against questions surrounding his past conduct and diplomatic stance.
