US Fed poised to hold off on rate cuts
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 criticised Fed Chair Jerome Powell for not slashing rates further, calling him a "numbskull" and "moron."
Most recently, Trump signalled 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 characterisation of the total cost of the refurbishment in front of the cameras.
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The Herald
an hour ago
- The Herald
US diplomats asked if non-whites qualify for Trump refugee programme for South Africans
The internal back-and-forth between the embassy and the state department, which hasn't been previously reported, illustrates the confusion about how to implement a policy designed to help white Afrikaners in a racially diverse country that includes mixed-race people who speak Afrikaans and whites who speak English. To date the state department has resettled 88 South Africans under the programme, including the initial group of 59 who arrived in May. Another 15 are expected to arrive by the end of August, one source said. Trump, a Republican who recaptured the White House pledging a wide-ranging immigration crackdown, placed an indefinite freeze on refugee admissions from around the world after taking office, saying the US would only admit refugees who 'can fully and appropriately assimilate'. Weeks later he issued an executive order that called for the US to resettle Afrikaners, describing them as victims of 'violence against racially disfavoured landowners', allegations that echoed far-right claims which have been contested by government. Since the executive order, US diplomats working to implement the programme have been deliberating internally about which racial groups could be considered eligible, one source said. In the July 8 cable, Greene laid out a summary of the different ethnic and racial groups in the country before seeking guidance on eligibility. In addition to Afrikaners and mixed-race South Africans, Greene mentioned indigenous South Africans known as the Khoisan people. He said members of the Jewish community had also expressed interest, but in South Africa they are considered a religious minority and not a racial group. 'In the absence of other guidance, [the US embassy] intends to give consideration to well-founded claims of persecution based on race for other racial minorities,' Greene wrote. At least one family identified as coloured has travelled to the US as refugees, two people familiar with the matter said. The cable forced the administration to clarify its position on whether the policy is for whites only, and if it does include other aggrieved minorities, who would qualify, two people familiar with the matter said. Chretien, a conservative who wrote op-eds promoting the Heritage Foundation's 'Project 2025" plan to overhaul the federal government, is the senior official at the state department's bureau of population, refugees, and migration.
IOL News
2 hours ago
- IOL News
Emma Powell resigns as the DA's international relations spokesperson
DA MP Emma Powell has resigned as spokesperson for International Relations after being accused of discrimination peddler to the US. Image: FILE Democratic Alliance (DA) MP Emma Powell has resigned from her role as the party's spokesperson on International Relations following allegations that she spread disinformation about the South African government during a visit to the United States. In a statement released on Monday, Powell said she had decided to step down after more than two years in the role, citing the personal and political toll of her work. 'Over the past two and a half years, I have traveled the world on behalf of my party, first as shadow minister and later as national spokesperson, speaking out against some of the most repressive and brutal regimes in the world,' Powell said. She claimed that her work defending South Africa's constitutional values on the global stage resulted in threats, intimidation, harassment, and illegal surveillance. 'Driven by my commitment to the DA's foundational principles, I accepted these risks as the unavoidable cost of standing up to and exposing DIRCO (Department of International Relations and Cooperation) and the ANC's relationships with authoritarian regimes,' she said. Powell said her resignation came at a time when she believed she had contributed as much as possible to the DA's international agenda, particularly in the Government of National Unity (GNU). 'In an environment that rewards expediency, truly principled leadership is rare and often costly,' she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'We must each do what is possible to tip the world's axis toward freedom, but good leaders know when it is time to step back and allow others to carry the baton forward.' The DA confirmed her resignation in a separate statement, saying Powell had 'chosen' to step down. The party thanked her for her service and announced that she would soon be reassigned to a new portfolio. 'Powell remains a valued member of the DA caucus in Parliament, and we will soon announce her new portfolio allocation,' said DA national spokesperson Karabo Khakhau. The party also announced that Ryan Smith would take over as the new spokesperson on international relations and cooperation. Powell's resignation follows a controversial DA delegation trip to Washington, DC in March, which included MP Andrew Whitfield, a former deputy minister of trade, industry and competition. President Cyril Ramaphosa later fired Whitfield for taking the trip without informing him. The visit, according to the party, was aimed at strengthening relations between South Africa and the United States, and drew sharp criticism from the ANC-led government. Minister of International Relations and Cooperation Ronald Lamola expressed concern over the DA's actions, arguing that foreign policy matters are the constitutional prerogative of the executive. 'Africa's non-aligned stance and the advancement of our national interest remain central pillars of South Africa's foreign policy,' Lamola previously told IOL News. 'Our nation-building project cannot survive if the majority of our citizens remain in abject poverty.' Lamola criticised what he described as attempts to misrepresent South Africa's land reform efforts, particularly the Expropriation Bill, which has drawn international attention and criticism. He insisted the bill does not allow arbitrary land seizure. Tensions between the DA and the ANC further escalated after Powell claimed that Ramaphosa's envoy to the US, Mcebisi Jonas, had been denied entry and that the US had rejected his diplomatic credentials. However, the Presidency denied the claims. The DA, however, defended its US trip, stating the visit was intended to provide 'fact-based information' about South Africa's political and economic challenges. 'These discussions were aimed at ensuring that U.S. leaders receive accurate and fact-based information regarding South Africa's domestic landscape and the challenges our nation is currently navigating,' Powell said at the time. Powell also emphasised the importance of maintaining open diplomatic channels with Washington, particularly amid 'unnecessary provocations' and strained bilateral relations. IOL Politics
eNCA
4 hours ago
- eNCA
Battling tariffs is no trivial pursuit for US games retailer
ANNAPOLIS - At a strip mall in Maryland, a miniature landscape extends across a table between Dash Krempel and his friend as a war game unfolds. But their hobby is becoming more expensive as US tariffs take a toll. Krempel told AFP the cost of models for tabletop games have surged from inflation, and continued rising since US President Donald Trump imposed sweeping tariffs on trading partners this year. UK-made figurines that cost $60 around three years ago now go for $94.50, he said. "Prices have gotten bigger," he added. "It's a very expensive hobby to begin with, so it's maybe pricing a lot of people out." Instead of buying more products, he now tries to support retailer Game Kastle College Park by renting tables to play in-store. For the shop's owner, Boyd Stephenson, stocking new board games, paints and hobby supplies has only become more challenging. To avoid the harshest of Trump's tariffs, some suppliers had to delay shipments or postpone new releases. As they raised their suggested retail prices, so has Stephenson at Game Kastle. About a fifth of his store's products have seen cost hikes, with increases ranging from 5 percent to 20 percent. "If we see higher prices or higher tariffs, I'm going to see higher wholesale prices, and then I have to raise my prices accordingly," he said. Asked what percentage of his store relies on imports, Stephenson replied: "Almost all of it." - No capacity - AFP | SAUL LOEB Stephenson estimates some 7,000 board games were released last year from 5,000 different companies. "You're really looking at 5,000 different approaches (to tariffs)," he said. "Some producers are saying, 'We're going to eat the cost.' Some producers are saying, 'We're passing the cost through all the way.' And other producers are doing some sort of mix of that." Like other US retailers, Stephenson could face more cost pressures come August 1, when steeper tariffs are set to hit dozens of economies like the European Union and India. The elevated rates mark an increase from the 10 percent levy Trump imposed on goods from most economies in April. AFP | SAUL LOEB While China -- a crucial manufacturing hub for games -- is temporarily spared, Trump has separately imposed fresh 30 percent tariffs on products from the world's second biggest economy this year. US tariffs on Chinese products could return to higher levels from August 12 if officials fail to extend their truce. Yet, there is no quick fix to return manufacturing to the United States. "US manufacturers just don't have the capacity to do that anymore," said Stephenson, showing an intricate board game figurine. "Really, the people that are good at that, that's China," he said. "The best modeling paints come from Spain." "So if you see tariffs get put up on the EU, then all of a sudden I'm going to have to pay higher prices on modelling paint when I bring it into the country," he added. Trump has threatened the bloc with a 30 percent tariff. - 'Universally bad' - AFP | SAUL LOEB Stephenson tries to absorb some cost hikes, but said: "I have to be able to pay the staff, pay the electric company, pay the landlord." Trump's on-again, off-again approach to duties has also made suppliers' price changes more unpredictable. "What is always universally bad for business is uncertainty," Stephenson said. He usually stocks up on inventory ahead of the year-end holiday season, but expects to be more strategic with purchases this year to avoid unwelcome surprises. Many companies are delaying merchandise imports as they lack certainty, said Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation. "When the product is brought into the country and entered into commerce, you have 15 days to pay your tariff bill," he said. This causes problems when tariff rates change and businesses lack funds to pay for orders. Some businesses, and industry group the Game Manufacturers Association, have mounted legal challenges against Trump's blanket tariffs hitting various countries, noting nearly 80 percent of tabletop games sold in the US are made abroad. But such complaints are an uphill battle. "The damage, especially for small retailers, has been significant," Gold said. by Beiyi Seow
