Zambia Gets $184 Million From IMF After Pledging Faster Reforms
The disbursement brings to $1.55 billion the amount the southern African nation has received under a 38-month IMF program that's due to end in October, the Washington-based lender said in a statement Friday.
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CBS News
an hour ago
- CBS News
OMB director Russell Vought on "I don't even know what that chapter says" about Project 2025 and the Fed
White House budget official Russell Vought, one of the authors of Project 2025, indicated Sunday that President Trump's focus on Federal Reserve Chairman Jerome Powell is because the president wants lower interest rates, not because it is one of the suggested targets of an overhaul suggested in the conservative blueprint. "I don't even know what that chapter says," Vought, the Office of Budget and Management director, said on "Face the Nation with Margaret Brennan" when talking about Project 2025 and the Federal Reserve. "All I know, in terms of the president, the president has run on an agenda. He's been very clear about that. All that we're doing is- in this administration is running on- is implementing his agenda." Overseen by the conservative thinktank Heritage Foundation, Project 2025 was a massive, multi-prong initiative for how a Republican president can introduce sweeping right-wing policy. Mr. Trump insisted on the campaign trail that he had "nothing to do" with Project 2025, and a 2024 CBS News analysis found that at least 270 of the nearly 700 policy proposals matched either campaign proposals or his first-term agenda. Since he took office, many of his policies have matched ones laid out in Project 2025. Project 2025 lays out an overhaul of the Fed, saying "monetary dysfunction is related in part to the impossibility of fine-tuning the money supply in real time, as well as to the moral hazard inherent in a political system that has demonstrated a history of bailing out private firms when they engage in excess speculation." "To protect the Federal Reserve's independence and to improve monetary policy outcomes, Congress should limit its mandate to the sole objective of stable money." Project 2025 says. Vought is not listed as one of the authors of that chapter, but he was one of the key intellectual drivers of the overall project and its recommendations. In recent weeks, Mr. Trump has sharply criticized Powell and has indicated he wants to fire Powell, but Mr. Trump has also said he didn't think it was necessary. The Fed chair can only be fired "for cause," and Mr. Trump has zeroed in on an extensive renovation project to two of the Federal Reserve's buildings under Powell's watch. Vought sent a letter on July 10 to Powell alleging the "ostentatious" office renovation project may be "violating the law." Mr. Trump visited the Fed on Thursday, where he and Powell clashed over the cost of those changes. Federal law gives the Fed the power to make decisions about acquiring and remodeling buildings in Washington to serve as its office spaces. The Fed is self-funded, so taxpayer dollars are not appropriated for their costs. Powell's term is up in 2026, and House Speaker Mike Johnson told CBS News last week that he expects a "rocky road" ahead for Powell. Mr. Trump wants Powell to lower interest rates, but Powell has said the Fed wants to see how the economy responds to Mr. Trump's sweeping tariffs, which Powell says could push up inflation. Further, the decision to raise or lower interest rates is not Powell's alone — eight times a year, the Federal Open Market Committee, which has 12 members, votes on monetary policy. Despite the pressure from the Trump administration, the Fed is expected to hold steady on interest rates at its meeting this week. Vought said Sunday that Mr. Trump has been "very clear that all he's asking from the Fed is lower interest rates, because he thinks it's important." "When you look across the globe, and you have countries lowering rates, and yet we don't see that in this country, given all of the positive economic indicators that we're seeing," Vought said. "And then we have fiscal mismanagement at the Fed with regard to this building renovation that I'm sure you will ask me about. Those are the kinds of things that we want to see from the Fed. This is not part of an existential issue with regard to the Federal Reserve."Joe Walsh contributed to this report.
News24
2 hours ago
- News24
Trump and EU's Von der Leyen announce deal hours before deadline
US President Trump and EU chief Von der Leyen announced an agreement just before the 1 August deadline that would have triggered across-the-board 30% US tariffs on EU goods. The deal sets a uniform 15% tariff on EU exports to the US. As part of the agreement, the EU committed to purchasing $750 billion worth of US energy and investing an additional $600 billion in America. US President Donald Trump and EU chief Ursula von der Leyen on Sunday announced they had reached a deal to end a transatlantic tariffs standoff and avert a full-blown trade war. The agreement came as the clock ticked down on an 1 August deadline for the European Union to strike a deal with Washington - or face an across-the-board US levy of 30%. 'We have reached a deal. It's a good deal for everybody,' Trump told reporters following a high-stakes meeting with Von der Leyen at his golf resort in Turnberry, Scotland. Trump told reporters the deal involved a baseline levy of 15% on EU exports to the United States - the same level secured by Japan - including for the bloc's crucial auto sector, which is currently being taxed at 25%. 'We are agreeing that the tariff straight across, for automobiles and everything else, will be a straight across tariff of 15%,' Trump said. READ | Trump complains EU not offering fair trade deal, Japan being 'tough' too He also said the bloc had agreed to purchase '$750 billion worth of energy' from the United States, as well as $600 billion more in additional investments in the country. Negotiating on behalf of the EU's 27 countries, Von der Leyen's European Commission had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services. 'It's a good deal,' the EU chief told reporters, sitting alongside Trump following their hour-long talks. 'It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic,' she said. No carve-outs The EU has been hit by multiple waves of tariffs since Trump reclaimed the White House. It is currently subject to a 25% levy on cars, 50% on steel and aluminium, and an across-the-board tariff of 10%, which Washington threatens to hike to 30 in a no-deal scenario. Brussels has been focused on getting a deal to avoid sweeping tariffs that would further harm its sluggish economy - with retaliation held out as a last resort. But the deal, as outlined by Trump, appeared to fall short of EU expectations. The bloc had been pushing hard for tariff carve-outs for critical industries from aircraft to spirits, and its auto industry, crucial for France and Germany, is already reeling from the levies imposed so far. Any deal will also need to be approved by EU member states - whose ambassadors, on a visit to Greenland, were updated by the commission on Sunday morning. They were set to meet again after the deal struck in Scotland. Trump said pharmaceuticals - a key export for Ireland, which the bloc has lobbied to shield - 'won't be part of' any deal. 'We have to have them built, made in the United States,' the president said. This month, Trump suggested the possibility of a 200% tariff on drugs imported into the United States, which would deal a crushing blow to the sector in Europe. The EU had also hoped for a compromise on steel that could allow a certain quota into the United States before tariffs would apply, but Trump ruled that out, saying steel was 'staying the way it is'. Auto sector While 15% would be much higher than pre-existing US tariffs on European goods, which average around 4.8%, it would mirror the status quo, with companies currently facing an additional flat rate of 10%. Had the talks failed, EU states had greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from 7 August. Brussels was also drawing up a list of US services to potentially target. Beyond that, countries including France say Brussels should not be afraid to deploy a so-called trade 'bazooka' - EU legislation designed to counter coercion that can involve restricting access to its market and public contracts. Trump has embarked on a campaign to reshape US trade with the world, and has vowed to hit dozens of countries with punitive tariffs if they do not reach a pact with Washington by 1 August. US commerce secretary Howard Lutnick had said on Sunday the 1 August deadline was firm and there will be 'no extensions, no more grace periods'.
Yahoo
3 hours ago
- Yahoo
Fed Is Set for Contentious Debate as Investors Eye Fall Rate Cut
(Bloomberg) -- Federal Reserve officials are determined to hold interest rates steady a little while longer, though an increasingly contentious debate at this week's policy meeting may bolster expectations for rate cuts in the fall. The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy Fed Chair Jerome Powell is under intense pressure from President Donald Trump and his allies to reduce borrowing costs, and may face multiple dissents this week from officials who want to provide support to a slowing labor market. But the US central bank is widely expected to leave its benchmark rate unchanged at the conclusion of its two-day meeting on July 30 as policymakers await more data revealing the impact of tariffs on consumer prices. 'Even as we don't see any change in the policy rate, I think we see hints that we are at a turning point in the policy path,' said Sarah House, senior economist at Wells Fargo. 'But of course, most of the committee doesn't seem there yet — I think they're still wary of what happens with inflation regarding these tariffs.' Fed officials will publish a post-meeting statement Wednesday at 2 p.m. in Washington, and Powell will hold a press conference 30 minutes later. Interest-rate futures show investors are betting on a likely rate reduction at the next meeting, in September, and Fed-watchers will be listening for anything that helps ratify that view. The rate decision lands in the middle of a week jam-packed with key economic data releases, including a monthly employment report due Friday. Economists expect it to show a slowdown in hiring in July as uncertainty around Trump's trade policy continued to weigh on the outlook. Dissents Many analysts see a possibility of dissents from Fed Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman, two Trump appointees who have expressed concern that rates are too high given rising risks to employment. Waller hinted at a dissent earlier this month, saying the Fed should move now to support a labor market that is 'on the edge.' Bowman also said in June that she could support a rate cut as soon as this month if price pressures remain subdued. If both Waller and Bowman cast dissenting votes, it would be the first time two governors did so since 1993. Waller is considered to be among candidates Trump is considering to replace Powell when his term as chair expires in May. Some commentators have shrugged over divisions appearing in the vote. In a note to clients on Friday, Michael Feroli, chief US economist at JPMorgan Chase & Co., said he'd view two dissents as 'more about auditioning for the Fed chair appointment than about economic conditions.' Diane Swonk, chief economist for KPMG, noted that dissents are common close to policy turning points. 'One should expect dissent as the Fed gets closer to deciding when to cut rates, given the wide band of uncertainty over how tariffs play out,' she wrote in a note to clients on Thursday. While Waller and Bowman are increasingly focused on the central bank's employment mandate, most others are still more concerned about inflation. Uncertainty over how tariffs will affect prices and how the central bank should respond was evident in projections policymakers issued in June: Of the 19 officials, 10 wanted at least two quarter-point rate cuts this year, and seven officials penciled in no reductions. Recent inflation reports showed price increases for some goods affected by tariffs, including toys and appliances. But underlying inflation also rose by less than expected in June for a fifth straight month, according to the consumer price index, suggesting price pressures aren't yet becoming broad-based. 'Given the post-Covid inflation playbook, some Fed officials are more cautious that tariffs might take longer to show up,' said John Briggs, head of US rates strategy at Natixis North America. 'The problem is for the Fed, you're just pushing off that data clarity, and this constant delay is just delaying the Fed's resolve.' Natixis expect the Fed to resume its easing cycle in October and to continue with a series of quarter-point reductions through June 2026. Press Conference In his press conference, Powell will almost certainly face questions about tariffs and inflation. He's likely to remain cautious, repeating his message that officials have an obligation to maintain price stability with inflation still running above the Fed's 2% target. The Fed chair could also acknowledge that better-than-expected data and recently-announced trade deals reduce the likelihood of a worst-case scenario for inflation, echoing comments by other officials in recent weeks and opening the door to a September cut. By the time policymakers gather September 16-17, they'll have two more jobs reports in hand, along with more data on inflation, spending and housing. By then, according to Andrzej Skiba at RBC Global Asset Management, officials may be in a position to lower rates unless there's an aggressive escalation of tariffs or inflation data surprises to the high side. So far, however, economists have been left to puzzle over why tariffs haven't made a bigger impact on prices. A range of factors could be at play, including moves by businesses to build inventories before tariffs hit and burden-sharing across the supply chain, said Gregory Daco, chief economist for EY-Parthenon. 'I would anticipate that Chair Powell is going to highlight these mechanics and highlight that these cost pressures are starting to show up, but still maintain an even-keeled narrative,' Daco said. Powell has faced extraordinary pressure from Trump this year, including threats of termination. Republicans' attacks on the central bank in recent weeks have homed in on its $2.5 billion building renovation project, culminating Thursday in a tour of the construction site by Trump himself. The Fed chair will probably field questions from reporters Wednesday about the attacks, though he will likely keep his message focused on the economy. 'Chair Powell's binder of prepared answers to predictable questions will be thick with material that has nothing to do with monetary policy,' Feroli wrote in his note. 'We expect that all of these will be wasted opportunities by members of the press corps, as Powell will repeat that he is focused on the job Congress has given him.' --With assistance from Maria Eloisa Capurro, Michael Mackenzie and Ye Xie. Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
