US News
LAST UPDATE: June 27, 2025
Fed rate cut in July? Inside the US central bank, few takers
Ahead of the July meeting, most Fed officials prefer to hold rates steady, waiting for more data on the inflationary effects of U.S. tariffs. Only two policymakers—Bowman and Waller—favor a July cut, while others stress the need for further inflation clarity. Markets expect potential cuts later in the year.
Insight
The Fed remains split between caution and preemptive easing. Political push for cuts is countered by concerns over tariffs fueling inflation. The central bank is emphasizing a data-driven approach, delaying any decision until after summer data release.
Fed’s Barkin urges patience on rate cuts, warns economic risks are rising
Richmond Fed President Barkin said it’s too soon to cut rates due to uncertainties from tariffs and inflation. He noted steady consumer spending and low unemployment but warned that corporate reluctance to invest is keeping the economy in a cautious state.
Insight
Barkin emphasizes cautious policy in a “wait-and-see” scenario. The Fed is avoiding overreaction to trade turmoil and underscores its commitment to data-driven decisions, underscoring risks of premature easing.
Trump’s Megabill Takes a Big Hit in Senate. The Clock Is Ticking Down.
The Senate parliamentarian ruled that over $250 billion in Medicaid cuts cannot pass through reconciliation, forcing GOP to revise the bill or risk failure. Trump is targeting July 4 for passage with the debt ceiling looming. Treasury Secretary Bessent called for removal of the “revenge tax.” (barrons.com, barrons.com, apnews.com)
Insight
The ruling highlights deep procedural and intra-party challenges. With a narrow margin, GOP must recalibrate the bill or face delay, reducing chances of hitting Trump’s July 4 deadline amid rising internal resistance.
Trump pushes for Congress green light on giant tax cuts package
Trump held a White House event pressing Congress to pass his “One Big Beautiful Bill,” extending 2017 tax cuts totaling $4.5 trillion while cutting healthcare. Shareable AFP coverage outlines its scope and political urgency. (yahoo.com)
Insight
Trump’s push indicates high stakes in rallying GOP support, but concerns over deficits and social program cuts may fracture the coalition backing the bill.
Bessent Says Proposed ‘Revenge Tax’ No Longer Needed
Treasury Secretary Scott Bessent urged Congress to remove Section 899—the so‑called “revenge tax”—from Trump’s massive budget and tax bill. This comes after G7 nations agreed to exempt U.S. firms from the 15% global minimum tax under OECD’s Pillar 2. The measure would have imposed retaliatory taxes on foreign investors, raising potential legal and economic complications.
Insight
The decision reflects a pragmatic pivot: with the G7 deal in place, the revenge tax is unnecessary and risk‑laden. Removing it eases global investor concerns and may accelerate the fiscal package’s passage before July 4.
US Secretary of State Rubio to host Quad foreign ministers next week
Secretary of State Marco Rubio will host Quad foreign ministers on July 1 in Washington to reinforce cooperation on Indo-Pacific freedom and regional security, amid tensions over China and policy.
Insight
The meeting signals continuity of Quad engagement under Trump, though recent U.S. trade and defense policy shifts have created friction. It reaffirms strategic alignment with Asia-Pacific partners.
