US Federal Reserve chair Jerome Powell leaves interest rates on hold
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News.com.au
9 hours ago
- News.com.au
Trump, EU chief seek deal in transatlantic tariffs standoff
US President Donald Trump and EU chief Ursula von der Leyen prepared to meet Sunday in Scotland in a push to resolve a months-long transatlantic trade standoff that is going down to the wire. Trump has said he sees a 50-50 chance of reaching a deal with the European Union, having vowed to hit dozens of countries with punitive tariffs unless they hammer out a pact with Washington by August 1. The EU is currently facing the threat of an across-the-board levy of 30 percent from that date. Von der Leyen's European Commission, negotiating on behalf of the EU's member countries, has been pushing hard for a deal to salvage a trading relationship worth an annual $1.9 trillion in goods and services. Any deal with the United States will need approval by all 27 member states. EU ambassadors, on a visit to Greenland, were to meet Sunday morning to discuss the latest negotiations -- and again after any accord. Sunday's sit-down between Trump and the EU chief was to take place at 4:30 pm (1530 GMT) in Turnberry, on Scotland's southwestern coast, where Trump owns a luxury golf resort. The 79-year-old American leader said Friday he hoped to strike "the biggest deal of them all" with the EU. "I think we have a good 50-50 chance" of a deal, the president said, citing sticking points on "maybe 20 different things". He praised von der Leyen as "a highly respected woman" -- a far cry from his erstwhile hostility in accusing the EU of existing to "screw" the United States. But late-night EU talks with US Commerce Secretary Howard Lutnick on Saturday to hammer out the final details were "combative at times," The Financial Times reported. As of Saturday evening, there were "still quite a few open questions" -- notably on pharmaceutical sector tariffs, said one EU diplomat. Tariff levels on the auto sector were also crucial for the Europeans -- notably France and Germany -- and the EU has been pushing for a compromise on steel that could allow a certain quota into the United States before tariffs would apply. - Baseline 15 percent - According to European diplomats, the deal on the table involves a baseline levy of around 15 percent on EU exports to the United States -- the level secured by Japan -- with carve-outs for critical sectors including aircraft, lumber and spirits excluding wine. The EU would commit to ramp up purchases of US liquefied natural gas, along with a series of investment pledges. Hit by multiple waves of tariffs since Trump reclaimed the White House, the EU is currently subject to a 25-percent levy on cars, 50 percent on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatens to hike to 30 percent in a no-deal scenario. The EU has focused on getting a deal with Washington to avoid sweeping tariffs that would further harm its sluggish economy, with retaliation as a last resort. While 15 percent would be much higher than pre-existing US tariffs on European goods -- at 4.8 percent -- it would mirror the status quo, with companies already facing an additional flat rate of 10 percent. Should talks fail, EU states have greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from August 7. Brussels is also drawing up a list of US services to potentially target. Beyond that, countries like France say Brussels should not be afraid to deploy a so-called trade "bazooka" -- EU legislation designed to counter coercion through trade measures which involves restricting access to its market and public contracts. But such a step would mark a major escalation with Washington. - Ratings dropping - Trump has embarked since returning to power on a campaign to reshape US trade with the world. But polls suggest the American public is unconvinced, with a recent Gallup survey showing his approval rating at 37 percent -- down 10 points from January. Having promised "90 deals in 90 days," Trump's administration has so far unveiled five, including with Britain, Japan and the Philippines. Early Sunday, ahead of his meeting with Von der Leyen, Trump was out again on the golf course, having spent most of Saturday playing at Turnberry amid tight security. The trip to Scotland has put physical distance between Trump and the scandal around Jeffrey Epstein, the wealthy financier accused of sex trafficking who died in prison in 2019 before facing trial. In his heyday, Epstein was friends with Trump and others in the New York jet-set, but the president is facing backlash from his own MAGA supporters demanding access to the Epstein case files. With the uproar refusing to die down, a headline agreement with the EU -- in addition to bolstering Trump's dealmaker credentials -- could bring a welcome distraction.
News.com.au
17 hours ago
- News.com.au
US Fed poised to hold off on rate cuts, defying Trump pressure
The US central bank is widely expected to hold off slashing interest rates again at its upcoming meeting, as officials gather under the cloud of an intensifying pressure campaign by President Donald Trump. Policymakers at the independent Federal Reserve have kept the benchmark lending rate steady since the start of the year as they monitor how Trump's sweeping tariffs are impacting the world's biggest economy. With Trump's on-again, off-again tariff approach -- and the levies' lagged effects on inflation -- Fed officials want to see economic data from this summer to gauge how prices are being affected. When mulling changes to interest rates, the central bank -- which meets on Tuesday and Wednesday -- seeks a balance between reining in inflation and the health of the jobs market. But the bank's data-dependent approach has enraged the Republican president, who has repeatedly criticized Fed Chair Jerome Powell for not slashing rates further, calling him a "numbskull" and "moron." Most recently, Trump signaled he could use the Fed's $2.5 billion renovation project as an avenue to oust Powell, before backing off and saying that would be unlikely. Trump visited the Fed construction site on Thursday, making a tense appearance with Powell in which the Fed chair disputed Trump's characterization of the total cost of the refurbishment in front of the cameras. But economists expect the Fed to look past the political pressure at its policy meeting. "We're just now beginning to see the evidence of tariffs' impact on inflation," said Ryan Sweet, chief US economist at Oxford Economics. "We're going to see it (too) in July and August, and we think that's going to give the Fed reason to remain on the sidelines," he told AFP. - 'Trial balloon' - Since returning to the presidency in January, Trump has imposed a 10 percent tariff on goods from almost all countries, as well as steeper rates on steel, aluminum and autos. The effect on inflation has so far been limited, prompting the US leader to use this as grounds for calling for interest rates to be lowered by three percentage points. Currently, the benchmark lending rate stands at a range between 4.25 percent and 4.50 percent. Trump also argues that lower rates would save the government money on interest payments, and floated the idea of firing Powell. The comments roiled financial markets. "Powell can see that the administration floated this trial balloon" of ousting him before walking it back on the market's reaction, Sweet said. "It showed that markets value an independent central bank," the Oxford Economics analyst added, anticipating Powell will be instead more influenced by labor market concerns. Powell's term as Fed chair ends in May 2026. - Jobs market 'fissures' - Analysts expect to see a couple of members break ranks if the Fed's rate-setting committee decides for a fifth straight meeting to keep interest rates unchanged. Sweet cautioned that some observers may spin dissents as pushback on Powell but argued this is not necessarily the case. "It's not out-of-line or unusual to see, at times when there's a high degree of uncertainty, or maybe a turning point in policy, that you get one or two people dissenting," said Nationwide chief economist Kathy Bostjancic. Fed Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman have both signaled openness to rate cuts as early as July, meaning their disagreement with a decision to hold rates steady would not surprise markets. Bostjancic said that too many dissents could be "eyebrow-raising," and lead some to question if Powell is losing control of the board, but added: "I don't anticipate that to be the case." For Sweet, "the big wild card is the labor market." There has been weakness in the private sector, while the hiring rate has been below average and the number of permanent job losers is rising. "There are some fissures in the labor market, but they haven't turned into fault lines yet," Sweet said. If the labor market suddenly weakened, he said he would expect the Fed to start cutting interest rates sooner.
News.com.au
21 hours ago
- News.com.au
Ugly battle for Hulk Hogan's $37m fortune ensues as new wife Sky set to cash in
Hulk Hogan's wife is set to inherit nearly a third of his vast fortune at least in the wake of his death, possibly creating a major rift with his ex-wives and estranged daughter. Hogan and his third wife, Sky Daily, 49, have only been married for two years, but Florida law guarantees her 30% of his estate, whether or not he updated his will or trust before his sudden death on Thursday at 71, The Sun reports. Watch the biggest Aussie sports & the best from overseas LIVE on Kayo Sports | New to Kayo? Join now and get your first month for just $1. In addition to investments and cash accounts, Hogan owned an $18 million mansion in Clearwater, Florida and multiple businesses, and he set up a revocable trust and a personal trust before he died, The U.S. Sun has learned. Florida estate expert and paralegal, June Frederiksen, at the Schofner Law Firm, explained that the WWE wrestler, movie star, and local business owner likely had 'very in-depth estate planning.' 'You set up a trust to protect your assets, so you run everything through the trust,' the expert explained. The trust is meant to avoid his estate ending up in court, having to figure out where assets need to go and if creditors can collect from it. But whether or not his new wife, Sky, was included in his trusts, she still stands to inherit a large portion of his wealth. 'He married Sky two years ago, so he probably updated the trust so she would get a spousal elective share,' Fredricksen said. 'Even if Sky was left out of his estate and he didn't update his trust since they married, she would still get a spousal elective share, which she is entitled to 30% in Florida.' June said someone in the trusts will be named the trustee and they will do whatever the trusts direct for the distribution of Hulk's assets. Things can get dicey, however, if his trusts weren't fully up to date. For example, if there were assets that were not rolled into his trusts, or importantly, if someone contests what is directed in the trusts, there may not be a way to avoid estate court. What's more, Fredricksen said, if his estate battle does end up in court, then the assets become 'susceptible to creditors, and I'm sure he had some creditors.' Hulk had notoriously fallen out with his daughter Brooke Hogan. The two have been estranged for several years, and the WWE star never met his twin grandchildren, Oliver and Molly Gene, who were born in January of this year. 'If Brooke is left out of the will, she can contest it,' and the battle would wind up in probate court, the legal expert explained. Inside Hulk Hogan's $37m fortune Hulk's estimated net worth is $37 million, according to Celebrity Networth. As The U.S. Sun exclusively revealed, Hulk owns a massive Clearwater property worth about $18 million. He owned several businesses in Florida, with Hogan's Beach Shop in 2013 which is still going strong, as well as the restaurant Hogan's Hangout, which is also still open, in Clearwater Beach. The wrestler also owned Real American Beer, which launched last year. Hulk has also appeared in a slew of movies beyond his legendary run with the WWE. Sky's heartbreaking tribute Sky Hogan shared an emotional statement following the sudden passing of her husband on Thursday. In her Instagram post, she expressed her devastation and reflected on his health struggles. 'My heart is in pieces,' she began. 'I wasn't ready for this. He had been dealing with some health issues, but I truly believed we would overcome them. I had so much faith in his strength. I thought we still had more time.' She continued, 'This loss is sudden and impossible to process. To the world, he was a legend … but to me, he was my Terry. The man I loved. My partner. My heart.' Hulk Hogan's final days Hogan had been battling significant health challenges in the months leading up to his death. He underwent neck surgery in May, which required a return to the hospital in June after complications. By mid-year, reports surfaced claiming Hogan was unable to feel his legs or walk without the aid of a cane, with some rumours suggesting he was on his deathbed. However, these claims were denied or downplayed by those close to him. On Thursday morning, Hogan suffered cardiac arrest at his $18 million mansion in Clearwater, Florida. Paramedics arrived following a frantic 911 call and spent 30 minutes attempting to revive him. He was transported to the hospital, where he was pronounced dead. Hulk Hogan's family Hogan was married twice before meeting Sky. His first marriage was to Linda Claridge, with whom he shared two children: Brooke, 35, and Nick, 32. The family starred in the reality series Hogan Knows Best, which aired from 2005 to 2007. Hogan and Claridge were married for 26 years before divorcing in 2009. The following year, he married makeup artist Jennifer McDaniel, though their marriage ended in divorce in 2021. Hogan later married Sky in an intimate ceremony in Clearwater, Florida.
