Fed's Waller calls for interest cut by July-end
Speaking at a New York University event on Friday morning, Waller said that data still points to ongoing economic growth, but at a slower pace - reinforcing the need for monetary easing.
Moreover, inflationary pressures stemming from the tariffs imposed by President Donald Trump's administration are likely to be temporary. The Fed can look past them and instead focus on broader economic trends, Waller added.
Waller pointed out that the current interest rate range of 4.25% - 4.5% remains above the estimated neutral level of around 3%, and said that if growth continues to slow and inflationary pressures remain contained, he would support further gradual rate cuts in future meetings.
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Arab News
9 hours ago
- Arab News
With gavel in hand, Trump chisels away at the power of a compliant Congress
WASHINGTON: 'Mr. President, this is the gavel used to enact the 'big, beautiful bill,'' House Speaker Mike Johnson said at a White House signing ceremony on the Fourth of July. 'I want you to have it,' he said. Handing over the gavel delighted President Donald Trump who, seated behind a desk outdoors, immediately tested it out with a few quick thumps. The moment left a memorable mark on a historic day. The gesture reflected a traditional nod of honor, from one leader to another, a milestone of the Republican Party's priority legislation becoming law. But the imagery also underscored a symbolic transfer of political power, from Capitol Hill to the White House as a compliant Congress is ceding more and more of its prerogative to the presidency. Congress gives Trump what he wants Since Trump's return to the White House in January, and particularly in the past few weeks, Republicans in control of the House and Senate have shown an unusual willingness to give the president of their party what he wants, regardless of the potential risk to themselves, their constituents and Congress itself. Republicans raced to put the big package of tax breaks and spending cuts on Trump's desk by his Independence Day deadline. Senators had quickly confirmed almost all of Trump's outsider Cabinet nominees despite grave reservations over Robert F. Kennedy Jr. as health secretary, Pete Hegseth as the Pentagon chief and others. House Republicans pursued Trump's interest in investigating his perceived foes, including investigating Democratic President Joe Biden'suse of the autopen. But at the same time, Congress hit the brakes on one of its own priorities, legislation imposing steep sanctions on Russia over its war on Ukraine, after Trump announced he was allowing President Vladimir Putin an additional 50 days to negotiate a peace deal, dashing hopes for a swifter end to the conflict. This past week, Congress was tested anew, delivering on Trump's request to rescind some $9 billion that lawmakers had approved but that the administration wanted to eliminate, including money for public broadcasting and overseas aid. It was a rare presidential request, a challenge to the legislative branch's power of the purse, that has not been used in decades. The pressure on Republicans is taking its toll 'We're lawmakers. We should be legislating,' said a defiant Sen. Lisa Murkowksi, R-Alaska, as she refused to support the White House's demand to rescind money for National Public Radio and others. 'What we're getting now is a direction from the White House and being told, 'This is the priority. We want you to execute on it. We'll be back with you with another round,'' she said. 'I don't accept that.' Congress, the branch of government the Founding Fathers placed first in the Constitution, is at a familiar crossroads. During the first Trump administration, Republicans frightened by Trump's angry tweets of disapproval would keep their criticisms private. Those who did speak up — Liz Cheney of Wyoming in the House and Mitt Romney of Utah in the Senate, among others — are gone from Capitol Hill. One former GOP senator, Jeff Flake of Arizona, who announced in 2017 during Trump's first term that he would not seek reelection the next year, is imploring Republicans to find a better way. 'The fever still hasn't broken,' he wrote recently in The New York Times. 'In today's Republican Party, voting your conscience is essentially disqualifying.' Seeking a 'normal' Congress But this time, the halls of Congress are filled with many Republicans who came of political age with Trump's 'Make America Great Again' movement and owe their ascent to the president himself. Many are emulating his brand and style as they shape their own. A new generation of GOP leaders, Johnson in the House and Senate Majority Leader John Thune, have pulled closer to Trump. They are utilizing the power of the presidency in ways large and small — to broker deals, encourage wayward lawmakers to fall in line, even to set schedules. Johnson, R-Louisiana, has openly pined for what he calls a 'normal Congress.' But short of that, the speaker relies on Trump to help stay on track. When Republicans hit an impasse on cryptocurrency legislation, a Trump priority, it was the president who met with holdouts in the Oval Office late Tuesday night as Johnson called in by phone. The result is a perceptible imbalance of power as the executive exerts greater authority while the legislative branch dims. The judicial branch has been left to do the heavy lift of checks and balances with the courts processing hundreds of lawsuits over the administration's actions. 'The genius of our Constitution is the separation of power,' said Democratic Rep. Nancy Pelosi of California, the former speaker, in an interview on SiriusXM's 'Mornings with Zerlina.' 'That the Republicans in Congress would be so ignoring of the institution that they represent, and that have just melted the power of the incredibly shrinking speakership' and Senate leadership positions, 'to do all of these things, to cater to the executive branch,' she said. Confronting Trump comes with costs Sen. Thom Tillis, R-N.C., endured Trump's criticism over his opposition to the tax and spending cuts bill. The senator raised concerns about steep cuts to hospitals, but the president threatened to campaign against him. Tillis announced he would not seek reelection in 2026. Sen. Susan Collins, R-Maine, voted against that bill and the rescissions package despite Trump's threat to campaign against any dissenters. One Republican, Rep. Thomas Massie of Kentucky, appears to be pressing on, unphased. He recently proposed legislation to force the administration to release the Jeffrey Epstein files, something the president had been reluctant to do. 'Nowhere in the Constitution does it say that if the president wants something, you must do it,' said Sen. Brian Schatz, D-Hawaii, in a Senate speech. 'We don't have to do this. We don't have to operate under the assumption that this man is uniquely so powerful.'
Leaders
a day ago
- Leaders
EU, UK Slam Russia with Fresh Sanctions
The European Union (EU) and the UK on Friday announced new sanctions on Russia, targeting its energy and banking sectors as well as military capabilities. The EU's 18th sanctions package aims to ramp up pressure against Russia over its more than three-year war on Ukraine. It comes as the US President, Donald Trump, has shown a shift in his stance on Moscow, threatening Russia's leader of sweeping sanctions if he did not accept a ceasefire agreement. EU Sanctions Package The EU and UK jointly announced new measures targeting Russia's oil revenues. These include reducing the Crude Oil Price Cap from $60 barrel to $47.60, which will drive down the market value of Russian oil, disrupting the flow of oil money into Moscow. The EU also imposed a port access ban on additional 105 vessels and full-fledged sanctions on companies managing or dealing with them, targeting Russia's shadow fleet that circumvents Western sanctions. Moreover, EU introduced an import ban on refined petroleum products made from Russian crude oil and coming from any third country, except Canada, Norway, Switzerland, the UK and the US. The bloc also imposed a full transaction ban on Nord Stream 1 and 2 pipelines between Russia and Germany. Furthermore, the measures targeted Russia's banking sector, including two Chinese banks. It also hit Moscow's military industry, including tighter export restrictions on 26 entities over dual-use goods and technologies. Strong Message On this occasion, the EU Foreign Policy Chief, Kaja Kallas, said: 'The EU just approved one of its strongest sanctions packages against Russia to date. Each sanction weakens Russia's ability to wage war.' She underscored Europe's commitment to supporting Ukraine. 'The message is clear: Europe will not back down in its support for Ukraine. The EU will keep raising the pressure until Russia ends its war,' Kallas added. Meanwhile, the UK Foreign Secretary, David Lammy, said: 'As Putin continues to stall on serious peace talks, we will not stand by. That's why we're striking at the heart of the Russian energy sector alongside the EU.' He added that Britain will continue to increase pressure on Russia to stop its war in Ukraine. 'Together we will continue to apply relentless pressure on Putin, squeezing his critical oil industry and cutting off funding for his illegal war in Ukraine,' he noted. UK Sanctions Separately, the UK announced sanctions on 3 units of Russia's military intelligence service, GRU, and 18 military intelligence officers for spreading chaos and disorder upon orders from the Russian President, Vladimir Putin. Their actions involved the bombing of the Mariupol Theatre, the targeting of Yulia Skripal, and cyber operations targeting the UK and others. 'GRU spies are running a campaign to destabilize Europe, undermine Ukraine's sovereignty and threaten the safety of British citizens,' Lammy said. 'Putin's hybrid threats and aggression will never break our resolve. The UK and our Allies support for Ukraine and Europe's security is ironclad,' he added. Russian Rejection In response to the newly announced sanctions, Moscow said it opposes such 'illegal' measures, according to the Associated Press (AP). Speaking to reporters in a conference call, the Kremlin Spokesperson, Dmitry Peskov, said: 'We consider such unilateral restrictions unlawful.' But he added that Russia has adapted to living under sanctions. 'At the same time, of course, we have already acquired a certain immunity from sanctions. We have adapted to life under sanctions. We will need to analyze the new package in order to minimize negative consequences from it,' Peskov said. Trump's Threats The European measures come as Trump on Monday threatened Russian energy buyers of massive '100% secondary tariffs' if Russia does not end its war on Ukraine within 50 days. This marked a dramatic shift from his previous position. Trump also confirmed that the US would send the much-needed Patriot air defense systems and other weapons to Ukraine via NATO countries, to help Kyiv in fending off Russian aerial attacks, amid his growing frustration with Putin. Short link : Post Views: 7
Arab News
a day ago
- Arab News
‘Frightening': Trump's historic power grab worries experts
WASHINGTON: Donald Trump has spent six months testing the limits of his authority like no other modern US president, say analysts — browbeating Congress and the courts in a power grab that may come to define his second term. Since January, the Republican leader has repeatedly pushed to secure more power for himself, calling for judges to be axed, firing independent watchdogs and sidestepping the legislative process. Barbara Perry, a University of Virginia professor and an expert on the presidency, called Trump's successes in shattering the restraints on his office 'frightening.' 'All presidents have been subject to Congress's and the Supreme Court's checks on their power, as well as splits in their own political parties,' she said. 'Trump has faced almost none of these counterpoints in this second term.' It is all a far cry from his first stint in office, when Trump and his supporters believe he was hamstrung by investigations and 'deep state' officials seeking to frustrate his agenda. But those guardrails have looked brittle this time around as Trump has fired federal workers, dismantled government departments and sent military troops into the streets to quell protest. He has also sought to exert his influence well beyond traditional presidential reach, ruthlessly targeting universities and the press, and punishing law firms he believes have crossed him. Checks and balances The US system of checks and balances — the administration, the courts and Congress as equal but separate branches of government — is designed to ensure no one amasses too much power. But when it comes to Trump's agenda — whether ending diversity efforts and birthright citizenship or freezing foreign aid — he has largely dodged the hard work of shepherding bills through Congress. Policies have instead been enacted by presidential edict. Six months in, Trump has already announced more second-term executive orders than any American leader since Dwight Eisenhower in the 1950s. He has even sought to bend the economy to his will, escalating attacks on the chief of the independent central bank in a bid to lower interest rates. Once a robust restraining force against presidential overreach, the Republican-led Congress has largely forsaken its oversight role, foregoing the investigations that previous presidents have faced. That has left the judiciary as the main gatekeeper. But Trump has managed partly to neuter the authority of the federal bench too, winning a Supreme Court opinion that mostly reduces the reach of judges' rulings to their own states. In his first term the high court made Trump immune from prosecution for actions taken as part of his official duties — no matter how criminal. And almost every time Trump has turned to the country's highest legal tribunal to rein in the lower courts in his second term, it has obliged. 'Project 2025' His long shadow has extended far beyond Washington's institutions, pushing into private realms his predecessors avoided. Trump has picked fights with elite universities, prestigious law firms and the press — threatening funding or their ability to do business. The arts haven't escaped his clunking fist either, with the 79-year-old taking over the running of the Kennedy Center in Washington. Trump has claimed falsely that the US Constitution gives him the right to do whatever he wants as the ultimate authority over government activities. This so-called 'unitary executive theory' was pushed in the 'Project 2025' blueprint for government produced by Trump's right-wing allies during last year's election campaign. Although he disavowed 'Project 2025' after it became politically toxic, Trump's own platform made the same claims for expansive presidential powers. Pessimistic about the other branches' ability to hold the administration to account, the minority Democrats have largely been limited to handwringing in press conferences. Political strategist Andrew Koneschusky, a former senior Democratic Senate aide, believes the checks on Trump's authority may ultimately have to be political rather than legal or constitutional. He points to Trump's tanking polling numbers — especially on his signature issue of immigration following mass deportations of otherwise law-abiding undocumented migrants. 'It's not entirely comforting that politics and public opinion are the primary checks on his power,' Koneschusky said. 'It would be better to see Congress flex its muscle as a co-equal branch of government. But it's at least something.'
