US News
LAST UPDATE: September 25, 2025
Top Federal Reserve official warns against series of rate cuts
Jerome Powell, Chairman of the Federal Reserve, warned that cutting interest rates too quickly could allow inflation to remain elevated. He stated that “there is no risk-free path” forward for the central bank, which must balance the risks of a weakening labor market and persistent inflation. The warning came in a speech after the Fed’s first rate cut of the year.
Insight
Powell’s cautious warning highlights the delicate balancing act facing central banks in a complex economic environment. This suggests that while a rate-cutting cycle may have begun, the pace and extent of future cuts will be highly conditional on new economic data and the ongoing battle against inflation.
Bessent Chides Powell for Not Championing Interest Rate Cuts
US Treasury Secretary Scott Bessent has criticized Federal Reserve Chairman Jerome Powell for not “championing” a more aggressive interest rate-cutting agenda. Bessent expressed surprise that Powell had not signaled an intent to cut rates by 100 to 150 basis points by the end of the year. The Treasury Secretary reiterated that interest rates are “too tight” and need to be lowered to spur economic growth.
Insight
Bessent’s public criticism of Powell’s monetary policy stance is an unprecedented move that signals a deep rift between the Treasury and the Fed. It highlights the Trump administration’s desire for a more expansionary monetary policy, creating significant pressure on the central bank to align its actions with the administration’s economic goals.
Treasury’s Bessent says he’s looking for someone with an open mind for Fed chair
US Treasury Secretary Scott Bessent stated that he is looking for someone with an “open mind” to lead the Federal Reserve, as he is currently interviewing 11 candidates to replace Jerome Powell. Bessent will submit a list of “three to four top candidates” to President Trump for the position. His comments signal the administration’s intent to appoint a new Fed chair whose policy views align more closely with its own.
Insight
This news underscores the political dimension of the Federal Reserve chairmanship. Bessent’s search for a candidate with an “open mind” suggests a desire for a new leader who is willing to diverge from past Fed practices and adopt policies that are more in line with the administration’s agenda.
US intends to cancel $13 billion in funds for green energy
The US Department of Energy intends to return over $13 billion in unobligated funds from green energy projects to the US Treasury. The money was originally appropriated to advance the “previous Administration’s wasteful Green New Scam agenda,” according to the department. The move is aimed at redirecting resources toward “affordable, reliable and secure American energy.”
Insight
This decision to cancel green energy funds is a major policy reversal that underscores the Trump administration’s commitment to prioritizing traditional energy sources over renewables. It signals a shift away from a climate-focused agenda and a return to “energy dominance” as a key policy objective.
US debt investors raise alarm over lending standards
US debt investors are raising concerns about a potential decline in lending standards, which could increase the risk of financial instability. The alarm comes as private investment managers are raising significant capital for new real estate funds and new loan originations are up. Investors fear that the rapid mobilization of capital could lead to riskier lending practices.
Insight
The concern among debt investors about declining lending standards is a critical signal of a potential build-up of systemic risk. It suggests that the search for yield in the private credit market may be leading to a repeat of pre-2008 financial crisis behavior, where poor underwriting standards led to a cascade of defaults.
Trump plans ‘America First’ foreign aid funding shift, document shows
The Trump administration plans to shift almost $2 billion in foreign aid toward its “America First” agenda, according to a document sent to lawmakers. The funds will be redirected toward priorities such as countering “Marxist, anti-American regimes” in Latin America and pursuing investments in Greenland and Ukraine. The plan would end decades of bipartisan consensus on foreign assistance.
Insight
This planned shift in foreign aid funding represents a dramatic reorientation of US foreign policy. It signals a move away from traditional humanitarian and development aid towards a more transactional and politically motivated approach, which could reshape alliances and the geopolitical landscape.
