US News
LAST UPDATE: May 26, 2025
Federal Reserve’s Jay Powell urges US university students to protect democracy
Federal Reserve Chair Jay Powell, in a commencement address, emphasized the importance of safeguarding democratic values and institutions, urging graduates to uphold integrity and civic responsibility.
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Powell’s remarks highlight concerns about political polarization and its potential impact on economic stability. By advocating for democratic principles, he underscores the interconnectedness of governance, public trust, and economic confidence, especially amid challenges to institutional independence.
Kashkari Says ‘Not Sure’ on Interest Rate Moves by September
Federal Reserve Bank of Minneapolis President Neel Kashkari stated uncertainty regarding interest rate adjustments by September, citing economic unpredictability.
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Kashkari’s comments reflect the Fed’s data-dependent approach in navigating economic uncertainties, including inflation trends and labor market dynamics. This cautious stance indicates a flexible monetary policy strategy, responsive to evolving economic indicators.
Trump says US wants to make tanks, not T-shirts
President Donald Trump emphasized a shift in U.S. manufacturing focus towards military and advanced technological products, stating a preference for producing items like tanks and AI technologies over textiles and footwear.
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Trump’s remarks highlight a strategic pivot in U.S. industrial policy, aiming to bolster sectors deemed critical for national security and technological leadership. By deprioritizing traditional manufacturing industries such as textiles, the administration seeks to concentrate resources and incentives on high-value, defense-related, and tech-driven manufacturing. However, this approach raises concerns about the potential neglect of industries that provide substantial employment and the implications for consumer prices, especially for lower-income populations. The proposed tariffs, including a 50% levy on EU goods and a 25% tariff on imported iPhones, reflect an aggressive trade stance that could lead to retaliatory measures and increased tensions with key trading partners. The extension of the EU tariff deadline to July 9 indicates a window for negotiation, but the overarching strategy underscores a protectionist and nationalistic economic policy direction.
Trump’s Trade War Sends Chill Through Southern California Port Economy
President Trump’s tariffs, especially on Chinese imports, have significantly disrupted the Southern California port economy. The ports of Los Angeles and Long Beach, handling over a third of U.S. container imports, have seen a 17% drop in container arrivals. This decline has reduced dockworker hours, halted operations for part-time workers, and impacted local businesses reliant on port activity.
Insight
The tariffs have had a cascading effect on the Southern California economy, highlighting the region’s vulnerability due to its heavy reliance on international trade. The reduction in imports has not only affected port operations but also the livelihoods of truckers, warehouse workers, and local businesses such as restaurants and retailers. The uncertainty surrounding future trade policies further exacerbates the economic strain, making it challenging for businesses to plan and invest. This situation underscores the broader implications of trade wars on local economies and the importance of diversified economic structures to withstand such shocks.
