US News
LAST UPDATE: July 1, 2025
Bessent Says Current Yields Make No Sense in Long Debt Ramp-Up
U.S. Treasury Secretary Scott Bessent noted that prevailing interest rates make issuing long-term debt impractical, indicating the government will pause on increasing long-duration bond sales.
Insight
Bessent’s stance underscores a cautious debt-management posture aimed at minimizing borrowing costs, while markets focus on future Fed rate cuts and federal debt trajectory.
US Treasury’s Bessent says tax bill coming together, is ‘a start’ on controlling debt
Treasury Secretary Bessent stated that progress on Trump’s “Big Beautiful Bill” is underway and it’s “a start” toward federal debt control, following Senate GOP discussions on removing a retaliatory tax.
Insight
This signals constructive engagement between the Treasury and lawmakers. However, fiscal sustainability hinges on balancing major tax cuts with long-term deficit controls.
US dollar suffers worst start to year since 1973
The U.S. dollar has fallen 10.8% in the first half of 2025—the steepest drop since 1973—due to concerns over Trump-era tariffs, high federal debt, and fears of Fed rate cuts, prompting investors to shift toward the euro and German bonds.
Insight
The sharp depreciation reflects waning investor confidence in U.S. fiscal and monetary policy. While this undermines dollar dominance, it could stabilize soon given oversold conditions.
Trump Deals Poised to Fall Short of Sweeping Trade Reforms
With the July 9 tariff deadline approaching, the White House is expected to announce limited country-specific deals rather than comprehensive global trade reforms.
Insight
This suggests a strategic pivot toward delivering quick, smaller wins instead of broad structural agreements. While meeting deadlines, core trade issues remain unaddressed.
Fed’s Goolsbee sees no stagflation but ‘definitely’ things could get worse
Chicago Fed President Austan Goolsbee stated the U.S. economy is not currently in stagflation but warned that inflation and unemployment could worsen.
Insight
Goolsbee’s position reflects cautious optimism. He acknowledges uncertainty and the risk of economic deterioration, indicating ongoing close monitoring.
Fed Versus Trump on Tariffs Impact Will Soon Be Put to the Test
Economists expect that tariffs imposed by Trump’s administration will soon influence inflation, although early signals have been weak—posing a policy test for the Fed and White House.
Insight
Rising tariffs could force the Fed to delay rate cuts, creating conflict between inflation control and growth-focused political objectives.
White House says Trump wrote Powell to urge lower rates
The White House confirmed that Trump sent a personal letter to Fed Chair Jerome Powell, urging a reduction of interest rates to approximately 1%.
Insight
This is a clear example of political influence on the Fed, raising concerns over the central bank’s independence and its mandate to ensure price stability.
Renewable energy shares mixed as U.S. Senate preserves some tax credits in Trump bill
Following Senate approval of Trump’s tax-and-spending bill, solar stocks like First Solar and Sunrun rose, while others like NextEra retreated due to mixed implications for renewables.
Insight
The market reaction highlights the importance of consistent and clear clean-energy policies. Partial continuation of tax credits buoyed some sectors, but policy ambiguity continues to constrain investment certainty.
US Treasury’s Bessent warns countries face higher tariff rates after July 9 deadline
U.S. Treasury Secretary Scott Bessent warned that if trade deals aren’t finalized by July 9, tariffs could revert from the current temporary 10% to Trump’s earlier proposed range of 11–50%, even for those negotiating in good faith.
Insight
Bessent’s warning underscores the real economic stakes behind the looming deadline. The message pressures trading partners to accelerate negotiations or risk facing sharply increased import tariffs, adding urgency and leverage to U.S. trade policy (reuters.com).
