US News
LAST UPDATE: July 26, 2025
Trump suggests Fed Chair may cut interest rates
Trump suggested after meeting Powell that the Fed chair could be open to lowering rates. The visit highlighted tensions over expensive Fed HQ renovations and persistent calls for rate cuts. (Reuters, Reuters)
Insight
Trump’s remarks continue to challenge Fed independence. If markets interpret this as credible pressure for easing, inflation expectations could become unanchored.
Trump Says Prefers Strong Dollar But ‘You Can’t Sell Anything’
President Trump stated he “likes a strong dollar,” but cautioned that a strong currency hampers exports: “You can’t sell factories … you can’t sell trucks … you can’t sell anything.”
Insight
Trump presents conflicting messaging—praising a strong dollar’s role in curbing inflation while acknowledging its trade downsides—reflecting contradictory economic signaling under his policy.
Fed Says It Was ‘Honored’ by Trump’s Tour of Building Site
The Fed expressed being “honored” by Trump’s visit to the Federal Reserve building site, where he criticized renovation costs and pressed Chair Powell on rate cuts.
Insight
Trump’s combative visit reinforced perceptions of political pressure on Fed independence, prompting concern among monetary policymakers and investors.
Donald Trump brings war against the Fed to Jay Powell’s home turf
Trump visited the Fed for a high-profile encounter with Powell, publicly criticizing the central bank’s infrastructure spending and demanding interest rate cuts.
Insight
The bold confrontation is seen as a direct threat to Fed autonomy. Economists worry it may destabilize markets and undermine confidence in policy independence.
Trump Floats Giving Americans Rebate Checks From Tariff Revenues
Trump suggested using revenue generated by aggressive tariff policies to fund rebate checks to Americans.
Insight
This populist proposal ties trade restrictions to direct fiscal stimulus, underscoring his approach to finance policy through protectionism and redistribution.
Trump administration proposes bigger role for Development Finance Corporation
The administration is proposing to expand the U.S. Development Finance Corp’s capacity from $60 bn to $250 bn, extend its mandate to high-income countries, and include the Defense Secretary on its board.
Insight
The shift signals integration of economic development strategy with national security goals. The DFC could become a tool for strategic global engagement beyond low-income countries.
BofA’s Hartnett Renews Warnings on Bubble Risks for Stocks
Bank of America strategist Michael Hartnett warned of rising stock market bubble risk amid loosening monetary policy and easing financial regulation; world policy rate fell to 4.4% and is expected to drop further.
Insight
Greater liquidity and lower rates are fueling speculative behavior—raising red flags for overvalued equities, particularly in tech and AI sectors.
US core capital goods orders unexpectedly fall; shipments rise moderately
U.S. core capital goods orders declined 0.7% in June, while shipments rose 0.4%, indicating a slowdown in business equipment spending after a strong first quarter.
Insight
Firms are delaying investment amid tariff and policy uncertainty. Higher shipments reflect price effects more than real volume growth.
