US News
LAST UPDATE: June 25, 2025
Powell Reaffirms Wait-and-See Posture on Rate Cuts, Citing Solid Economy
Fed Chair Jerome Powell informed Congress on June 24, 2025, that although the U.S. economy remains strong, the Fed will adopt a cautious “wait-and-see” approach to rate cuts. He emphasized the need to assess the effects of tariff-driven inflation over the summer before taking action, potentially delaying cuts until September or later (wsj.com).
Insight
Powell’s stance reflects the Fed’s commitment to data-driven policy and inflation control, resisting market pressure for immediate cuts. The public split among officials underscores persistent uncertainty about the timing of future rate adjustments.
Powell Says Key Capital Rule Change May Aid Treasuries Market
On June 24, 2025, Fed Chair Jerome Powell testified before the House Financial Services Committee that reducing the enhanced supplementary leverage ratio (SLR) by up to 1.5 percentage points for major banks could boost their market‑making activity in U.S. Treasuries. He noted that when leverage ratios are binding, banks hold back from facilitating trades in low‑margin but critical Treasury operations (bloomberg.com).
Insight
Powell’s remarks reinforce the Fed’s intent to use regulatory tools—not just interest rates—to soothe financial market liquidity. By encouraging banks to mediate Treasury trades more actively, the Fed aims to stabilize a market strained by rising debt and infrequent trading conditions.
Fed’s Williams Says Holding Rates Steady ‘Entirely Appropriate’
On June 24, 2025, New York Fed President John Williams remarked at the Albany NanoTech Complex that keeping the current “modestly restrictive” interest rate stance (4.25%–4.5%) is “entirely appropriate.” He emphasized that this approach allows the Federal Reserve to analyze incoming data on inflation, labor market conditions, and tariff-related pressures before considering any rate adjustments (marketscreener.com).
Insight
Williams’ stance reinforces a consensus within the Fed for patience. By maintaining rates, the Fed mitigates risks associated with trade-driven inflation and uneven growth. This unified messaging from senior officials enhances policy credibility and signals that rate cuts are unlikely until later in the year.
US current account surges to record high in first quarter
The US current account deficit reached a record-high in Q1, with the gap at around $450.2 billion (≈6.0% of GDP), up from $312 billion in Q4 2024. This was driven by businesses front-loading imports to avoid tariffs and a drop in primary income payments (news.google.com, reuters.com, m.economictimes.com).
Insight
The surge underscores growing fiscal imbalances amid trade uncertainty and protectionist policies. A widening deficit may pressure the dollar and complicate Fed and trade policy decisions, as higher imports clash with efforts to reduce external vulnerabilities.
Trump Amps Up Pressure on GOP Holdouts on His Massive Tax Bill
Former President Trump urged Republican lawmakers not to recess until the “One Big Beautiful Bill” (OBBB) tax and spending package is passed by the July 4 deadline, amid internal GOP resistance over fiscal costs and policy details .
Insight
The push highlights intraparty tensions: balancing ambitious policy goals against fiscal conservatism. Trump’s assertive stance aims to coalesce divisions, but resistance from Senate holdouts suggests lingering hurdles and risk to GOP unity.
Republican Move to Mask $3.8 Trillion Tax-Cut Cost Rings Alarms
Senate Republicans are attempting a procedural accounting maneuver to conceal up to $3.8 trillion in tax-cut costs from the headline score of their legislative package .
Insight
Masking such enormous fiscal impacts poses risks to transparency and long-term financial credibility. It may placate short-term political optics but could undermine trust in GOP fiscal discipline and exacerbate debt concerns.
Bessent Predicts Republicans Reach SALT Truce Within 48 Hours
Treasury Secretary Scott Bessent said Congressional Republicans expected to agree on a compromise over state and local tax (SALT) deduction caps within 24‑48 hours, a key sticking point in the OBBB bill .
Insight
Resolving the SALT issue would clear a major legislative bottleneck. It emphasizes the political necessity to satisfy high-tax state lawmakers and demonstrates pragmatic negotiation under tight deadlines.
Trump’s Chip Tariff Threat Sparks Pushback From Auto Industry To Tech
Trump’s proposal to impose tariffs on semiconductor imports has elicited significant backlash from over 150 stakeholders across auto, tech, and crypto sectors, warning about cost hikes and supply chain disruption .
Insight
The broad opposition highlights the delicate balance between trade protectionism and industrial competitiveness. Tariffs on chips risk undermining American tech and auto innovation, potentially prompting targeted lobbying and a reassessment of trade strategy.
US Senate parliamentarian says oil, gas projects can’t skirt environmental review
Senate parliamentarian Elizabeth MacDonough ruled that provisions in the OBBB bill allowing offshore oil & gas projects to bypass NEPA reviews require 60 votes to pass, complicating efforts to expedite project approval .
Insight
This procedural barrier illustrates constraints on bypassing environmental scrutiny via budget reconciliation. It imposes a legislative check, forcing the GOP to either build consensus or remove these provisions, which could slow the bill’s passage.
