Browsed by
Category: Economics/Business

Most Trump tariffs are not legal, appeals court rules

Most Trump tariffs are not legal, appeals court rules

Reuters reports: A divided U.S. appeals court ruled on Friday that most of Donald Trump’s tariffs are illegal, undercutting the Republican president’s use of the levies as a key international economic policy tool. The court allowed the tariffs to remain in place through October 14 to give the Trump administration a chance to file an appeal with the U.S. Supreme Court. Trump has made tariffs a pillar of U.S. foreign policy in his second term, using them to exert political…

Read More Read More

The Federal Reserve tried to put off confrontation with Trump for as long as possible

The Federal Reserve tried to put off confrontation with Trump for as long as possible

Victoria Guida writes: The Federal Reserve is not a place that panics. My experience of the central bank and its staff is that they try to think as many steps ahead as possible. Just as Fed policymakers weigh the balance of risks to the economy, and the many potential scenarios that may unfold, they similarly weigh the balance of political risks to their mandate and autonomy. It’s an institution made up of regular people, of course — people who feel…

Read More Read More

The AI-profits mirage and the lessons of history

The AI-profits mirage and the lessons of history

John Cassidy writes: In a 1987 article in the Times Book Review, Robert Solow, a Nobel-winning economist at M.I.T., commented, “You can see the computer age everywhere but in the productivity statistics.” Despite massive increases in computing power and the rising popularity of personal computers, government figures showed that over-all output per worker, a key determinant of wages and living standards, had stagnated for more than a decade. The “productivity paradox,” as it came to be known, persisted into the…

Read More Read More

Trump’s attack on Federal Reserve may undermine the global economy

Trump’s attack on Federal Reserve may undermine the global economy

Politico reports: Europe’s central bankers were cautiously critical Tuesday of U.S. President Donald Trump’s efforts to oust a top Federal Reserve official. They expressed unease at the potential spillover effects from a growing political threat to the independence of the world’s most important central bank. Trump invoked sweeping executive powers to unseat Federal Reserve Governor Lisa Cook in an unprecedented challenge to the legally enshrined independence of the Fed on Monday, after housing chief William Pulte accused her of mortgage…

Read More Read More

Third of U.S. economy already in recession or at high risk, and another third is stagnating, Moody’s economist warns

Third of U.S. economy already in recession or at high risk, and another third is stagnating, Moody’s economist warns

Fortune reports: After saying that the U.S. is on the precipice of a recession earlier this month, Moody’s Analytics chief economist Mark Zandi continued to add more granularity to his warning. In social media posts on Sunday, he said his assessments of various datasets indicate that states accounting for nearly a third of U.S. GDP are already in a recession or at high risk of slipping into one. Another third is treading water, while the last third is still expanding….

Read More Read More

The United States is no longer a reliable, predictable place to do business

The United States is no longer a reliable, predictable place to do business

The New York Times reports: Through recessions, wars, financial crises and political turmoil, the U.S. economy has maintained its reputation as the safest place in the world for investors to put their money and for entrepreneurs to build their businesses. That has given the United States a nearly incalculable economic advantage, allowing it to borrow more cheaply, grow more quickly and emerge from downturns more successfully than nearly any of its global peers. President Trump may be chipping away at…

Read More Read More

Trump uses legal threats to push Federal Reserve member — the only Black woman — to resign

Trump uses legal threats to push Federal Reserve member — the only Black woman — to resign

Don Moynihan writes: One trademark of an authoritarian regime is the use of the legal system to target political opponents and forgive friends. This has the effect of undermining our basic conception of the law as a set of rules that is fairly and consistently applied. It also centralizes authority and undermines government capacity. Trump’s call for Federal Reserve member Lisa Cook to resign, under the threat of a DOJ investigation, is a clear example of this type of authoritarianism….

Read More Read More

Roger Alford: What I saw inside Pam Bondi’s DOJ

Roger Alford: What I saw inside Pam Bondi’s DOJ

Roger P. Alford served as a deputy assistant attorney general in the Antitrust Division of the Department of Justice in the first Trump administration, and as principal deputy assistant attorney general in the division in the second term. He writes: The Republican Party today is a battleground. The confrontation isn’t between traditional conservatives and Trump supporters. Rather, it pits genuine MAGA reformers against MAGA-in-name-only lobbyists. It’s a fight over whether Americans will have equal justice under law, or whether the…

Read More Read More

Trump’s military occupation of D.C. is hurting local businesses too

Trump’s military occupation of D.C. is hurting local businesses too

Rolling Stone reports: Donald Trump’s deployment of National Guard troops to the nation’s capital and forcing a federal law enforcement takeover of the Metropolitan Police Department is not only terrorizing residents and workers, it’s also harming local businesses. Washington, D.C., restaurants are experiencing significant drops in reservations, and bars are seeing fewer customers. Online reservations for D.C. restaurants plunged more than 25 percent in the days immediately after Trump announced the takeover of D.C. police for the first time in…

Read More Read More

U.S. economy is on the brink of recession, says Moody’s chief economist

U.S. economy is on the brink of recession, says Moody’s chief economist

Business Insider reports: Mark Zandi sees trouble ahead for the US economy. The Moody’s Analytics chief economist recently predicted in a post on X that the US economy is on the brink of recession following some of the latest economic data. While Zandi later noted that he doesn’t think the US economy is in a recession yet, there are certain industries that have already entered one. Yet, that’s just one of the reasons he thinks that the US economy is…

Read More Read More

AI bubble: Sam Altman says, ‘investors as a whole are overexcited about AI’

AI bubble: Sam Altman says, ‘investors as a whole are overexcited about AI’

TechSpot reports: OpenAI CEO Sam Altman has acknowledged what many economists have suspected for months: the artificial intelligence sector is in a bubble fueled by overexcited investors. In a dinner interview with reporters in San Francisco, the ChatGPT chief compared today’s AI investment frenzy to the dot-com bubble of the late 1990s – a rare moment of candor from a leader whose company sits at the center of the boom. “Are we in a phase where investors as a whole…

Read More Read More

Consumer financial protections at risk as Wall Street reverses its stance on crypto

Consumer financial protections at risk as Wall Street reverses its stance on crypto

The New York Times reports: Not long ago, bank executives would compete with one another to be the loudest critic of cryptocurrencies. Jamie Dimon, the chief executive of JPMorgan Chase, once compared Bitcoin to a pet rock and said the whole crypto industry should be banned. Bank of America’s Brian Moynihan described the space as an “untraceable tool for money laundering,” while HSBC’s chief executive proclaimed bluntly: “We are not into Bitcoin.” Now big banks can’t stop talking about crypto….

Read More Read More

Trump calls on Goldman to replace economist who has warned tariffs will cause inflation

Trump calls on Goldman to replace economist who has warned tariffs will cause inflation

The Wall Street Journal reports: President Trump on Tuesday appeared to call for Goldman Sachs Chief Executive David Solomon to replace the bank’s top economist over his past predictions, in his latest broadside against executives he believes are undermining his goals. Trump said on his Truth Social social-media platform that Solomon should “go out and get himself a new Economist” because the bank made a “bad prediction a long time ago” on the market and tariffs. The president asserted that…

Read More Read More

As crime rates fall, Trump’s DC takeover is yet another distraction from Epstein

As crime rates fall, Trump’s DC takeover is yet another distraction from Epstein

Axios reports: President Trump temporarily placed Washington, D.C., police under federal control on Monday and implied that he would intervene in other cities despite crime rates falling. Why it matters: Trump’s D.C. takeover is a major escalation of federal control not frequently seen in America, and further illustrates his willingness to target Democratic-led cities while testing the limits of presidential authority. While announcing the D.C. crackdown, Trump also named Los Angeles, Baltimore, Oakland, New York and Chicago as cities that are “bad, very bad,” without offering specific…

Read More Read More

Essential workers forced to go into hiding as crops rot and farmers face bankruptcy

Essential workers forced to go into hiding as crops rot and farmers face bankruptcy

  Crops are rotting. Families have vanished. Behind closed doors, a hidden crisis is unfolding across the farms of the West. Fear of immigration raids has driven farmworkers indoors, with their kids stuck inside all summer and their livelihoods on hold. CNN’s David Culver goes inside homes few outsiders ever see and reveals how immigration enforcement is reshaping the fields and the families who keep them running.

The uncomfortable fact about the stock market’s historic run is that no one is sure why it’s happening

The uncomfortable fact about the stock market’s historic run is that no one is sure why it’s happening

Rogé Karma writes: Can anything stop the stock market? The U.S. economy recently weathered the worst pandemic in 100 years, the worst inflation in 40 years, and the highest interest rates in 20 years. Yet from 2019 through 2024, the S&P 500 grew by an average of nearly 20 percent a year, about double its historical average rate. Despite President Donald Trump’s erratic economic policies, which include the highest tariffs since the 19th century, the market is already up by…

Read More Read More