President’s tariffs are being scrutinized in crucial legal test of plan to impose duties on nearly every US trading partner
Donald Trump’s sweeping tariffs on the world are being scrutinized by the US supreme court today, a crucial legal test of the president’s controversial economic strategy – and his power.
Justices started to hear oral arguments this morning on the legality of using emergency powers to impose tariffs on almost every US trading partner.
Continue reading...Central bank sets rates at range between 3.75% and 4% amid turbulence from government shutdown and Trump’s tariffs
The US Federal Reserve cut interest rates on Wednesday, the second rate cut this year amid economic turbulence from the federal government shutdown and Donald Trump’s tariffs.
The decision to cut the Fed’s benchmark interest rate by a quarter point to a range of 3.75% to 4% comes at an extraordinary moment for the central bank. The Fed has been under immense pressure from Donald Trump to cut rates despite persistent inflation.
Continue reading...Increase was largely driven by a 4.1% increase in gasoline prices despite Trump’s campaign pledge to ‘end inflation’
Prices continued to rise in September, increasing at an annual rate of 3%, according to the latest government inflation report.
The September 2025 consumer price index (CPI) was published approximately two weeks later than usual due to the federal government shutdown, which halted all Bureau of Labor Statistics operations.
Continue reading...Exclusive poll: Inflation remains a concern despite president’s pledge to reduce prices on ‘day one’
Nine months after Donald Trump took office, promising to reduce prices on “day one”, a clear majority of Americans say their monthly costs have risen by between $100 and $749, according to an exclusive new poll conducted for the Guardian.
The president has continued to insist that there is “virtually no inflation”. “Prices are ‘WAY DOWN’ in the USA,” Trump wrote on social media in late August.
Continue reading...According to one report, each week of shutdown could cost up to $7bn, with another suggesting a $15bn loss in GDP
Senior officials inside Donald Trump’s administration have acknowledged the federal government shutdown, without an end in sight, could hurt the US economy. The damage could be worth billions of dollars each week, according to analysts.
“This isn’t the way to have a discussion, shutting down the government and lowering the GDP,” Scott Bessent, the US treasury secretary, told the CNBC financial news network. “We could see a hit to the GDP, a hit to growth and a hit to working America.”
Continue reading...President announces 100% tariffs on imported branded drugs, 25% on heavy-duty trucks and 50% on cabinets
Donald Trump on Thursday announced a new round of punishing tariffs, saying the United States will impose a 100% tariffs on imported branded drugs, 25% tariff on imports of all heavy-duty trucks and 50% tariffs on kitchen cabinets.
The US president also said he would start charging a 50% tariff on bathroom vanities and a 30% tariff on upholstered furniture next week, with all the new duties to take effect from 1 October.
Continue reading...Cook’s lawyers say president’s unprecedented move would destroy Fed’s independence and disrupt financial markets
Federal Reserve governor Lisa Cook urged the US supreme court on Thursday to reject Donald Trump’s attempt to fire her, telling the justices the Republican president’s unprecedented move would destroy the central bank’s independence and disrupt financial markets.
Lawyers for Cook filed a written response opposing the justice department’s 18 September emergency request to lift a federal judge’s order that blocked Trump from immediately removing Cook, an appointee of Democratic former president Joe Biden, while her legal challenge continues.
Continue reading...Rates now stand at a range of 4% to 4.25% as reduction comes amid concern of political pressure on independent central bank from Trump
Federal Reserve cuts US interest rates for first time since December
US treasury secretary reportedly made similar mortgage pledge to Lisa Cook
A reporter asked Jerome Powell about Stephen Miran’s appointment, specifically on the fact that Miran is the first Fed governor to also have a role in the executive branch while also serving on the Fed board. Miran is the chair of the Council of Economic Advisors.
“The committee remains united in pursuing our dual mandate goals,” Powell said in response. “We’re strongly committed to maintaining our independence and beyond that, I really don’t have anything to share.”
Continue reading...Bloomberg reports Scott Bessent agreed to occupy two different houses at same time as his ‘principal residence’
Scott Bessent, the US treasury secretary, previously agreed to occupy two different houses at the same time as his “principal residence”, Bloomberg News reported on Wednesday, an agreement similar to one Donald Trump has called mortgage fraud in his unprecedented bid to fire the Federal Reserve governor Lisa Cook.
The Bloomberg report cites Bessent’s mortgages with lender Bank of America and his pledge in 2007 to primarily occupy homes in New York and Massachusetts.
Continue reading...Senate votes 48-27 to confirm Stephen Miran as Fed governor but court rules Cook may remain in place
Senate Republicans voted on Monday to confirm a senior Trump official to the Federal Reserve’s board of governors as the White House raced to strengthen the US president’s control over the central bank ahead of its latest meeting.
Hours before Fed policymakers convene for their September decision on interest rates, the Senate voted 48 to 27 to confirm Stephen Miran – already chair of Donald Trump’s council of economic advisers – as a governor.
Continue reading...Officials to investigate claims of mortgage fraud against Cook, who has refused to accept firing by Donald Trump
The US justice department has initiated a criminal investigation into mortgage fraud claims against Federal Reserve governor Lisa Cook as a lawsuit she filed against Donald Trump over her firing makes its way through court.
Lawyers with the justice department have issued subpoenas for the investigation, according to the Wall Street Journal, who first reported the investigation, which has since been confirmed by multiple news publications.
Continue reading...Jerome Powell – who Trump has urged to resign – will address the economic outlook at a symposium in Wyoming
For months, the Federal Reserve chair, Jerome Powell, has ignored demands from Donald Trump to cut interest rates and defied the US president’s calls to resign.
On Friday, as Trump ramps up his extraordinary attack on the central bank’s independence, Powell will set out where he thinks the world’s largest economy is headed in a closely scrutinized speech at the Jackson Hole symposium in Wyoming.
Continue reading...US trade representative says ‘the president is the president’ after firing of labor statistics chief amid slow job growth
Donald Trump administration officials fanned out on Sunday’s US political shows to defend the president’s policies after a bruising week of poor economic, trade and employment numbers that culminated with the firing of labor statistics chief Erika McEntarfer.
The US trade representative, Jamieson Greer, said Trump had “real concerns” about the jobs numbers that extend beyond Friday’s report that showed the national economy added 73,000 jobs in July, far below expectations. Job growth numbers were revised down by 285,000 for the two previous months as well.
Continue reading...US president called on top Fed officials to seize control from chair Jerome Powell if he fails to cut interest rates
Donald Trump called on top Federal Reserve officials to seize control from its chair, Jerome Powell, if he fails to cut interest rates, stepping up his extraordinary attacks on the central bank’s independence.
The US president called Powell “a stubborn MORON” in a series of critical social media posts on Friday, days after the Fed held rates steady for the fifth consecutive time.
Continue reading...July jobs growth slowed amid rising signs that Trump’s tariffs are weighing on trade, prices and hiring
The US economy added 73,000 jobs in July, far lower than expected, amid ongoing concerns with Donald Trump’s escalating trade war.
Forecasters surveyed by Bloomberg had predicted the July jobs report would show a drop in added jobs to around 109,000. The unemployment rate rose to 4.2% from 4.1% in June.
Continue reading...Trump will need to approve pause, say US representatives after negotiations end with sides failing to break deadlock on trade terms
US and Chinese negotiators have agreed in principle to push back the deadline for escalating tariffs, although America’s representatives said any extension would need Donald Trump’s approval.
Officials from both sides said after two days of talks in Stockholm that while had failed to find a resolution across the many areas of dispute they had agreed to extend a pause due to run out on 12 August.
Continue reading...Kevin Hassett says talks are ‘ongoing’ after US president announced 30% tariffs on goods from EU and Mexico
Donald Trump has seen some trade deal offers and thinks they need to be better, Kevin Hassett, the White House economic adviser, said on Sunday, adding that the president will proceed with threatened tariffs on Mexico, the European Union and other countries if they don’t improve.
“Well, these tariffs are real if the president doesn’t get a deal that he thinks is good enough,” Hassett told ABC’s This Week program. “But you know, conversations are ongoing, and we’ll see where the dust settles.“
Continue reading...Exclusive: poll shows 62% of women and 47% of men across political spectrum say economy and inflation getting worse
Women across the political spectrum are more concerned about the state of the US economy and inflation under Donald Trump than men are, according to a new exclusive poll for the Guardian.
More Democrats than Republicans are now concerned about the economy following the president’s return to power. But pessimism was higher for women even among Republicans and independents, according to a new Harris poll.
More women said they are very worried about food prices (52% of women compared to 39% of men)
More women said they’re spending more time trying to find deals or go to more affordable stores (36% versus 26%)
More women said their financial security is getting worse because of their difficulty in affording essential goods and services (55% versus 46%)
Continue reading...Time and time again over the past four months, reality has failed to match Trump’s rhetoric
“Tariffs are easy,” Donald Trump claimed in March. For his administration, and the world, they have proven anything but. Now an obscure New York court has blocked his signature trade policy, setting up a battle that looks sure to end up in the supreme court.
The plan was simple. For decades, Trump has made the case for tariffs. Now, in his second term, he would dramatically hike them on the world; raise trillions of dollars for the federal government; cut taxes for Americans; and lure manufacturers to the country’s industrial heartlands, creating millions of jobs.
Continue reading...Wall Street up in early trading after US president commends bloc for calling to ‘quickly establish meeting dates’
Donald Trump has indicated there has been progress in US trade talks with the EU, helping send share prices rising on Wall Street, after he commended the bloc for calling to “quickly establish meeting dates”.
“I have just been informed that the EU has called to quickly establish meeting dates. This is a positive event, and I hope that they will,” Trump wrote on his Truth Social platform on Tuesday, saying the EU would be “very happy and successful” if it agreed a deal.
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