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Yahoo
22 minutes ago
- Yahoo
US Copper Prices Plunge as Trump Tariffs Exclude Refined Metal
(Bloomberg) -- US copper prices collapsed by more than 19% in minutes after US President Donald Trump excluded the most widely imported form of copper from his planned import tariffs. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus We Should All Be Biking Along the Beach Tariffs of 50% will apply to imports of semi-finished copper products from Aug. 1, but not to imports copper ore or cathodes, the White House said on Wednesday. The move sent shockwaves through the global copper market, after months in which US copper futures have been trading far above the rest of the world in anticipation of Trump's import tariffs. US copper futures on Comex tumbled by more than 19% after the announcement, the largest intraday fall on record. Until Wednesday afternoon, US copper prices had been trading around 28% above benchmark copper futures on the London Metal Exchange, as traders anticipated the tariff would be applied to all refined metal imports. The move to exclude refined copper — known as cathodes — from the tariffs is likely to further upend global trade flows of the metal, which plays a crucial role in the global economy thanks to its widespread use in electrical wiring. Traders have shipped huge volumes of copper to the US in recent months in an attempt to front run the tariffs — a huge stockpile that now may be re-exported. US copper miner Freeport-McMoRan Inc. dropped more than 8%. Russia Builds a New Web Around Kremlin's Handpicked Super App Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©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
Fast Company
24 minutes ago
- Fast Company
Fed holds interest rates steady despite Trump's push for cuts
The Fed's decision Wednesday leaves its key short-term rate at about 4.3%, where it has stood after the central bank made three cuts last year. Chair Jerome Powell has said the Fed would likely have cut rates already if not for Trump's sweeping tariffs. Powell and other Fed officials say they want to see how Trump's duties on imports will impact inflation and the broader economy. So far the duties have lifted costs of some goods, such as appliances, furniture, and toys, and overall inflation has risen a bit, though less than many economists had expected. There were some signs of splits in the Fed's ranks: Governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs, while 9 officials, including Powell, favored standing pat. It is the first time in more than three decades that two of the seven Washington-based governors have dissented. One official, Governor Adriana Kugler, was absent and didn't vote. The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly demanded that the central bank reduce borrowing costs as part of his effort to assert control over one of the few remaining independent federal agencies. Trump argues that because the U.S. economy is doing well, rates should be lowered. But unlike a blue-chip company that usually pays lower rates than a troubled start-up, the Fed adjusts rates to either slow or speed growth, and would be more likely to keep them high if the economy is strong to prevent an inflationary outbreak. Earlier Wednesday, the government said the economy expanded at a healthy 3% annual rate in the second quarter, though that figure followed a negative reading for the first three months of the year, when the economy shrank 0.5% at an annual rate. Most economists averaged the two figures to get a growth rate of about 1.2% for the first half of this year. Some of the disagreement likely reflects jockeying to replace Powell, whose term ends in May 2026. Waller, in particular, has been mentioned as a potential future Fed chair. Bowman, meanwhile, last dissented in September 2024, when the Fed cut its key rate by a half-point. She said she preferred a quarter-point cut instead, and cited the fact that inflation was still above 2.5% as a reason for caution. Waller also said earlier this month that he favored cutting rates, but for very different reasons than Trump has cited: Waller thinks that growth and hiring are slowing, and that the Fed should reduce borrowing costs to forestall a weaker economy and a rise in unemployment. There are other camps on the Fed's 19-member rate-setting committee (only 12 of the 19 actually vote on rate decisions). In June, seven members signaled that they supported leaving rates unchanged through the end of this year, while two suggested they preferred a single rate cut this year. The other half supported more reductions, with eight officials backing two cuts, and two — widely thought to be Waller and Bowman — supporting three reductions. The dissents could be a preview of what might happen after Powell steps down, if President Donald Trump appoints a replacement who pushes for the much lower interest rates the White House desires. Other Fed officials could push back if a future chair sought to cut rates by more than economic conditions would otherwise support. Overall, the committee's quarterly forecasts in June suggested the Fed would cut twice this year. There are only three more Fed policy meetings — in September, October, and December — and some economists forecast that a cut will occur in September. Wall Street investors also expect cuts in September and December, according to futures pricing. When the Fed cuts its rate, it often — but not always — results in lower borrowing costs for mortgages, auto loans and credit cards. Some economists agree with Waller's concerns about the job market. Excluding government hiring, the economy added just 74,000 jobs in June, with most of those gains occurring in health care. 'We are in a much slower job hiring backdrop than most people appreciate,' said Tom Porcelli, chief U.S. economist at PGIM Fixed Income. Michael Feroli, an economist at JPMorgan Chase, said in a note to clients this week if the pair were to dissent, 'it would say more about auditioning for the Fed chair appointment than about economic conditions.' The Fed's two-day meeting comes after a week of extraordinary interactions with the Trump White House, which has accused Powell of mismanaging an extensive, $2.5 billion renovation of two office buildings. Trump suggested two weeks ago that the rising cost for the project could be a 'firing offense' but has since backed off that characterization. Notably, Trump argues that the Fed should cut because the economy is doing very well, which is a different viewpoint than nearly all economists, who say that a healthy, growing economy doesn't need rate cuts. 'If your economy is hot, you're supposed to have higher short-term rates,' Porcelli said.
Newsweek
24 minutes ago
- Newsweek
Trump Official Floats Privatizing Social Security
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Treasury Secretary Scott Bessent suggested Wednesday that a newly created children's savings program may serve as a pathway to privatizing Social Security. Speaking at a forum hosted by conservative outlet Breitbart, Bessent said the program, established under the former president's sweeping tax cuts and spending law, could act "in a way, [as] a backdoor for privatizing Social Security." The initiative, dubbed "Trump Accounts," allows for the creation of savings accounts for newborns in the U.S., each potentially seeded with a $1,000 contribution from the U.S. Treasury. While supporters frame the program as a bold new tool to promote long-term financial security, critics see a broader agenda. Democrats swiftly condemned the remarks. "Trump is now coming after American seniors with a 'backdoor' scam to take away the benefits they earned," said DNC spokesperson Tim Hogan. The comments have reignited Democratic warnings that Republican plans could undermine the traditional Social Security system. This article includes reporting by the Associated Press. This is a breaking news story. Updates to follow.
