US News
LAST UPDATE: June 26, 2025
US Fed chair does not expect ‘stagflation’ but monitoring risk
Fed Chair Jerome Powell said he does not anticipate stagflation—simultaneous high inflation and stagnant growth—but is closely monitoring for any signs. He emphasized that the Fed remains data-driven and will adjust policy as needed .
Insight
Powell’s caution reflects ongoing uncertainty over economic momentum and inflation risks. While optimistic, the Fed’s stance underscores preparedness to tighten if inflation remains sticky amid slower growth.
Powell Says End of Fed’s Interest Paid to Banks Won’t Save Money
Fed Chair Powell stated discontinuing interest on bank reserves won’t save taxpayer funds as unpaid reserves would be remitted to the Treasury. He defended the payments as essential for policy transmission .
Insight
Powell’s remarks emphasize that reserve-rate policy supports financial stability and interest-rate control; ending it would not reduce costs and might hinder monetary operations.
Fed’s Powell: Direction of travel on gov’t data collection is concerning
Fed Chair Jerome Powell expressed concern over reductions in government economic data collection—such as BLS surveys with data imputations rising to 30%—though he noted the Fed still has enough information for decision-making (tradingview.com, businessinsider.com).
Insight
Reliable data is essential for effective monetary policy. Powell’s warning suggests potential future blind spots in policy-setting and highlights the importance of adequately funding statistical agencies.
Federal Reserve unveils plans to reduce capital rules imposed after 2008 crisis
The Fed proposed relaxing the enhanced supplementary leverage ratio (eSLR), lowering capital requirements for major banks by ~27% at subsidiary level—potentially reducing deposits by $210 bn—and ~1.4% at holding companies .
Insight
This marks the most significant deregulation of US bank capital since 2008, aimed at reviving Treasury market liquidity. However, it draws criticism that reduced buffers may increase systemic risk.
Trump says ‘three or four’ candidates in mind for Fed chief
Former President Donald Trump announced he is considering “three or four” candidates to potentially replace Federal Reserve Chair Jerome Powell when his term ends in 2026. The shortlist reportedly includes former officials like Kevin Warsh and Kevin Hassett.
Insight
Trump’s early signaling of Fed leadership preferences suggests he is preparing to reshape U.S. monetary policy leadership. It may impact market expectations and raises questions about central bank independence in a potential second Trump term.
Key Republicans Signal ‘Progress’ on SALT Deal After Bessent Meeting
Republican lawmakers from high-tax states indicated progress on modifying the SALT deduction cap after a meeting with Treasury Secretary Scott Bessent. The adjustment could be key to gaining support for broader Trump-era fiscal legislation.
Insight
A compromise on the SALT cap may be instrumental in aligning disparate GOP factions and facilitating a broader tax package. It also reflects the political weight of suburban swing-district Republicans in fiscal negotiations.
Republicans dangle reprieve from tax retaliation as Trump bill heads toward votes
Republicans, including White House adviser Kevin Hassett and Rep. Jason Smith, indicated that a proposed Section 899 tax—designed to retaliate against foreign digital taxes—could be withdrawn from Trump’s “One Big Beautiful Bill” if affected countries (e.g., EU states) reverse their levy policies. However, inclusion may conflict with Senate budget rules (reuters.com).
Insight
The move shows GOP readiness to trade punitive tax measures for foreign policy alignment, but reflects internal tensions between trade leverage and investment attractiveness. Its fate hinges on fast-tracked budget reconciliation rules.
Trump Policies Will Cut Deficits Up to $11 Trillion, White House Economist Says
White House CEA Chair Stephen Miran claimed Trump’s economic agenda—including tax cuts, deregulation, tariffs, and the reconciliation bill—could reduce federal deficits by $8.5–11 trillion over a decade. These projections clash with CBO models forecasting rising debt by trillions .
Insight
The administration frames its strategy as growth-centric deficit reduction, but its optimistic assumptions conflict starkly with independent data. The gap raises credibility questions and may complicate legislative consensus.
US exchanges, SEC in talks to ease public company regulations
Nasdaq and NYSE are negotiating with the SEC to simplify listing and disclosure rules, including streamlining proxy processes, new SPAC guidelines, and reducing listing costs. The aim is revitalizing stagnant IPO and startup market activity .
Insight
This initiative marks a turning point in financial regulation—seeking to boost equity markets’ competitiveness. The key challenge lies in balancing deregulation with safeguarding investor transparency.
Wall Street reels from Zohran Mamdani’s victory in New York mayoral primary
Zohran Mamdani, aged 33 and associated with democratic socialism, won the Democratic primary for NYC mayor. His agenda—raising taxes on corporations and high earners—concerned financial firms, prompting some to explore funding centrist rivals .
Insight
Mamdani’s rise represents a broader leftward shift urban politics, raising alarms among market stakeholders about potential tax hikes and regulatory changes affecting New York’s economic center.
