US News
LAST UPDATE: June 2, 2025
Fed’s Waller Still Open to Cutting Interest Rates Later This Year
Federal Reserve Governor Christopher Waller stated that interest rate cuts remain a possibility later in 2025, despite inflationary effects from President Trump’s import tariffs.
Insight
Waller’s openness to rate cuts reflects a nuanced approach to monetary policy amid trade-induced inflation. He suggests that temporary inflation spikes from tariffs should not obstruct rate policy decisions. If core inflation trends toward the Fed’s 2% goal and the labor market remains strong, he would support rate cuts. This stance indicates the Fed’s willingness to adapt policy in response to evolving economic conditions, balancing inflation control with economic growth objectives.
Bessent Says US Will Never Default as Congress Faces Endgame
Treasury Secretary Scott Bessent asserted that the United States will not default on its debt, despite approaching the borrowing limit, emphasizing the government’s commitment to reducing the national debt over the next four years.
Insight
Bessent’s statement aims to reassure markets amid concerns over the federal debt ceiling. His confidence may stabilize investor sentiment, but the looming deadline necessitates prompt legislative action to prevent economic repercussions. The administration’s commitment to debt reduction over four years indicates a long-term fiscal strategy, yet immediate measures are crucial to avert default risks. The situation underscores the importance of bipartisan cooperation in addressing national financial obligations.
Trump Looks to Shore Up Support for GOP Megabill
President Trump is intensifying efforts to rally Republican support for a sweeping tax-and-spending bill, which includes tax cuts, Medicaid adjustments, and clean-energy incentives, amid concerns over its projected $2.7 trillion deficit increase over ten years.
Insight
The proposed legislation reflects the administration’s ambitious economic agenda but faces internal GOP divisions, particularly in the Senate. Concerns over increased deficits and specific provisions, such as the debt ceiling raise, highlight the challenges in uniting the party. Trump’s direct engagement with lawmakers indicates the high stakes involved. The bill’s outcome will significantly impact the administration’s fiscal policy and political capital.
