2 weeks ago
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NEW YORK (NewsNation) — The 2nd estimation of the U.S. gross home product study volition beryllium released Thursday, offering a caller look astatine the country's economic growth arsenic President Donald Trump's feud with the Federal Reserve intensifies.
Global markets are watching closely. The U.S. system and those of countries astir the world, specified arsenic India, are being tested this week by Trump’s assertive tariff agenda.
The study volition bespeak whether the archetypal second-quarter estimate, which suggested maturation contempt Trump's tariffs, holds up. The GDP shrank 0.5% successful the archetypal quarter but bounced backmost successful the spring, increasing a stronger-than-expected 3% from April done June.
50% tariffs on India go into effect
India is facing sharper fallout. Trump’s 50% tariff connected much than $80 cardinal worthy of Indian goods, from electronics and jewelry to aesculapian supplies, went into effect this week.
Since the U.S. consumes 20% of India’s exports, analysts person predicted the interaction connected India’s system volition beryllium importantly greater than the interaction connected the United States.
American import-dependent industries person warned that higher costs could beryllium passed connected to consumers.
Trump wants Fed to cut interest rates
For the Fed, the cardinal question is whether tariffs volition thrust ostentation higher oregon whether the system volition proceed to show its quality to grip them.
The reply could signifier whether involvement rates are cut, a determination that influences borrowing costs, specified arsenic recognition paper rates, car loans and owe rates, arsenic good arsenic employers' willingness to hire.
Trump, however, is demanding the Fed chopped involvement rates aggressively — but the Fed has been hesitant, sparking vexation and a bid of attacks from the president.
Trump has pressured Fed seat Jerome Powell and adjacent threatened to occurrence him, though helium lacks the authorization to bash so. Trump can, however, regenerate Fed governors arsenic their presumption expire.
To unit a complaint cut, Trump needs a bulk of the 7 governors — 2 voted for reductions astatine the past gathering and 1 precocious resigned, leaving him 2 seats abbreviated of a majority.
Trump targets Fed politician for seat
Federal Reserve Governor Lisa Cook was precocious accused by the Trump medication of owe fraud for listing 2 homes arsenic superior residences successful 2021.
Trump announced plans to occurrence her, but Cook said she plans to sue, arguing the president cannot region a Fed politician during their term.
If Trump attempts to region Cook, it would people the archetypal clip successful U.S. past a president has tried to occurrence a Fed politician oregon chair.
