US News
LAST UPDATE: June 24, 2025
US Fed official says open to July interest rate cut
Fed Vice-Chair for Supervision Michelle Bowman signaled openness to a July rate cut if inflation stays under control. She and Governor Waller suggest the Fed may act sooner than previously anticipated amid favorable inflation trends .
Insight
This marks a shift in Fed policy tone: officials are prepared to pivot quickly if conditions permit, reflecting internal debates between cautious and proactive approaches.
Goolsbee Says Fed Can Cut Rates If Tariff Inflation Doesn’t Come
Chicago Fed President Austan Goolsbee said that if tariff increases do not lead to higher inflation, the Fed could consider cutting interest rates, noting three straight months of muted inflation data so far. (bloomberg.com, ft.com)
Insight
Goolsbee’s position underlines a conditional but data-driven flexibility: the Fed remains open to easing if tariffs don’t spark inflation. His remarks reinforce the view that the central bank could stay on the “golden path” with cautious optimism, pending further inflation trends.
Fed to no longer police ‘reputational risk’ in banks
On June 23, the Federal Reserve announced it will remove “reputational risk” from its bank supervision guidelines, focusing instead strictly on quantifiable financial risks (reuters.com).
Insight
The shift aligns the Fed with other regulators, reducing subjectivity in oversight and reinforcing the principle of risk-based supervision, while banks are still expected to manage such risks internally.
US business activity moderates; price pressures building up
June’s flash PMI showed composite output slowing to 52.8, with services down to 53.1. Input cost pressures surged—especially in manufacturing—as two-thirds of firms pointed to tariffs. .
Insight
The data suggest persistent inflationary pressure from tariffs and rising energy costs, complicating the Fed’s policy path amid cooling growth.
Senate Readies Tax Bill for Vote as Holdouts Threaten Delay
Senate Republicans are finalizing revisions to Trump’s sweeping tax and budget bill, including SALT deduction changes and Medicaid provisions, aiming to overcome internal GOP resistance and pass the legislation before the July 4 deadline. Trump is lobbying hard to maintain momentum.
Insight
The bill’s progress illustrates the fine line between ideological purity and legislative pragmatism. Trump’s influence is pivotal, but intraparty disputes show the limits of executive leverage even with a Republican majority.
Trump exhorts US to drill oil, gas after Iran attacks
Former President Trump called for aggressive expansion of domestic oil and gas production following Iran’s strike on U.S. bases. He warned against relying on OPEC and demanded federal action to keep prices low.
Insight
Trump’s “drill, baby, drill” rhetoric is part of a broader energy nationalism push, linking domestic production to economic and geopolitical stability. However, energy markets remain governed by global supply and demand, limiting the immediate impact of political messaging.
The $7 Trillion‑Plus Pile in US Money‑Market Funds Keeps Growing
U.S. money‑market funds have reached a record $7.4 trillion in assets under management, gaining $320 billion so far this year amid expectations of slower Fed rate cuts (news.bloomberglaw.com).
Insight
The massive inflows signal investor caution and preference for low-risk liquidity. Despite expectations of easing policy, elevated yields are keeping money parked in cash, potentially dimming equity inflows.
US State Budget Wounds Intensify From Trump, DOGE Policy Shifts
U.S. state governments are bracing for deep fiscal strain due to federal spending cuts and trade policy swings under Trump’s “Department of Government Efficiency” (DOGE), with Maryland expecting a $350 million shortfall and California’s outlook weakened (bloomberg.com).
Insight
The federal-state tension over budget reallocation and revenue volatility reveals structural frictions. States must adjust to shrinking fiscal transfers, risking service cuts or tax increases.
