U.S. weekly new jobless claims drop to 6-week low
Initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 233,000 - the lowest since mid-May - for the week ended June 28, the Labor Department said on Thursday. Economists polled by Reuters had forecast 240,000 claims for the latest week.
The total ranks of those on jobless benefits rolls was unchanged in the week ended June 21 at 1.964 million, which is the highest level since the fall of 2021.
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Daily Mail
26 minutes ago
- Daily Mail
Elon Musk finally unleashes on Trump's Big Beautiful Bill victory with brutal troll after eyebrow-raising silence
Elon Musk is musing about the best way to create his new America Party now that Congress has passed President Donald Trump 's 'Big, Beautiful Bill.' Musk has been one of the biggest opponents of Trump's signature $3.3 trillion spending and tax cut legislation filled with major campaign promises including expanding mass deportations and investing in American energy. The tech billionaire complained about its lack of subsidies for electronic vehicles (which would benefit his Tesla company) and the billions it adds to the deficit after his DOGE agency worked to reign in federal spending. After its passage in both the House and Senate this week, it heads to Trump's desk Friday to be signed into law. And the billionaire is now asking his 221.7 million followers on X if it is time to make good on his threats to create a new political party and oust the Republicans who supported Trump's signature bill. 'One way to execute on this would be to laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts,' he wrote on X. 'Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people.' Republicans currently hold tiny majorities in both the House and Senate with just a handful of seats giving them the edge over Democrats. Musk and Trump got into a social media war during debate on the legislation, leading to Musk threatening to use his billions to start a third political party and Trump threatening to deport the naturalized American citizen. Musk was curiously silent in the hours following the congressional vote but, on July 4th, he decided to weigh in: 'Great day for some … fireworks,' he wrote, adding two fire emojis. He also praised Republican Senator Rand Paul and Republican Congressman Thomas Massie, both of Kentucky, for voting against the bill for the amount of money it added to the country's deficit. '100,' the world's richest man wrote using an emoji in support of them. Musk has threatened to primary any GOP lawmaker who voted in favor of Trump's signature legislation. Two Republican lawmakers who spoke to the Daily Mail brushed aside Musk's potential threats against GOP members who voted for the big beautiful bill. Rep. Ralph Norman (R-S.C.), a member of the conservative House Freedom Caucus brushed off Musk's threats when asked if he thought any members of his conference were worried about any potential retaliation from Musk for their vote. 'No, Elon Musk is for the country. No retaliation' Norman stated. Asked again if he thought his fellow Republicans could get primaried with millions of dollars flowing from Musk, Norman added the following. 'Elon Musk is a true patriot. He identified where our tax money went. For you, young people, you ought to be grateful that we had him.' 'No one else had the bandwidth to do what he did,' Norman noted, referring to Musk's work as Trump's former lead of the Department of Government Efficiency. Musk directly called out a pair of House Republicans who are a part of the conservative 'Freedom Caucus,' for their votes to pass the preliminary House version of the bill back in May. 'How can you call yourself the Freedom Caucus if you vote for a Debt Slavery bill with the biggest debt ceiling increase in history? @RepAndyHarrisMD @chiproytx,' Musk wrote, addressing the two GOP lawmakers directly. Elon Musk took to social media to ask his followers how they feel about a third political party Another conservative Republican, Representative John McGuire (R-Va.) told the Daily Mail that he believes Musk is going to move on 'bigger and greater things.' 'I think yesterday, he said more nice things about President Trump,' McGuire added, referring to a recent positive post Musk's made on X, formerly Twitter. In that post, Musk praised Trump's peace making abilities. 'Credit where credit is due. Donald Trump has successfully resolved several serious conflicts around the world,' Musk wrote in a post made at around 1:30 AM Wednesday. McGuire is not stranger to competitive GOP primaries in red seats, as he himself came to Congress after he primaried former Rep. Bob Good, a fellow Republican from the right last year. At the time that Musk made his promises, it remained unclear how much sway Musk had over Congress or what effect his opinions might have had on the bill's passage. On Monday, he escalated his attacks, saying lawmakers who campaigned on cutting spending but supported the bill 'should hang their heads in shame.' 'And they will lose their primary next year if it's the last thing I do on this Earth,' Musk declared. The Tesla and SpaceX CEO also called for a new political party, arguing the bill's massive spending showed 'we live in a one-party country — the PORKY PIG PARTY!' 'Time for a party that actually cares about the people,' he wrote. 'If this insane spending bill passes, the America Party will be formed the next day,' Musk pledged in a post on X Monday evening. Musk, now worth over $400 billion, founded the AmericaPAC super PAC in 2024. AmericaPAC raised more than $260 million last year, much of it to back Republicans in swing districts. Over $88 million went to supporting Trump directly. The Senate version of Trump's bill, which also passed the House on Wednesday, is estimated to add between $3.3 billion and $4.5 billion to the national debt. 'The insane spending of this bill increases the debt ceiling by a record five trillion dollars,' Musk posted. While nearly all Republicans backed the budget, two conservative lawmakers from Kentucky — Rep. Thomas Massie and Senator Rand Paul — voted no. Massie was already criticized by the Trump White House for opposing the bill, and Musk defended him even before the final vote. It remains to be seen whether Musk's support for Massie was an exception, or a sign he's prepared to oppose Trump in future primaries.
Finextra
40 minutes ago
- Finextra
Fed braces for impact as stagflation fears grow: By Prakash Bhudia
The Fed is sweating, even if the data says it shouldn't be. Inflation's cooling. Jobs are holding up. Financial markets are marching on. But beneath the surface, the signals are turning messy, and the world's most influential central bank seems to know it. Jerome Powell hasn't touched rates in months, not because the coast is clear, but because the storm might still be brewing. Whispers of stagflation, that dreaded mix of rising prices and sluggish growth, are getting louder. And this time, it's not just market pundits stirring the pot. The Fed's own members are ringing the alarm. A rare red flag from inside the fed Here's something you don't see every day: In May, 14 FOMC members flagged upside risks to both inflation and unemployment. Source: Federal Reserve Board, Bloomberg, Kobeissi Letter, Apollo That's a rare double warning - and it hasn't shown up this clearly since the 1970s. Source: BEA, BLS Source: BEA, BLS Even more telling? Not one policymaker saw a path where either inflation or unemployment might fall. That's not just cautious - it's an outright red flag. A soft landing might be the headline, but behind the scenes, the Fed is bracing for impact. Growth slips while jobs wobble Let's talk numbers. U.S. GDP shrank by 0.2% in Q1 2025 - the first contraction in over two years. The culprit? An enormous surge in imports, dragging the trade balance to its worst place in nearly 80 years of GDP records. But look a little deeper. Core domestic demand - measured by final sales to private domestic purchasers - is expected to plunge from +2.5% in Q1 to -1.0% in Q2. That's not a gentle slowdown. That's a jolt. Meanwhile, the labour market is still adding jobs, 139,000 in May, to be exact, but it's hardly smooth sailing. 95,000 jobs were quietly erased from prior months in revisions, and new cracks are forming beneath the surface. Layoffs are creeping up, especially in industries sensitive to tariffs and rates. Source: US Bureau of Labor Statistics Inflation looks fine… until it doesn't On paper, inflation is under control. Headline CPI sits at 2.35%, just below the Fed's comfort zone. Core inflation has tracked neatly around 2% over the last few months. Nothing to panic about, right? Source: Ycharts Maybe. But Nomura's economists think this is the calm before the storm. Tariff-related cost pressures are building. According to surveys, a third of manufacturers and nearly half of service firms plan to fully pass those costs on to consumers. So far, elevated inventories have masked the blow. But once those shelves empty, prices could snap higher, just as growth is fading. The dollar dilemma Now here's the twist: stagflation typically sends the U.S. dollar soaring, as investors seek refuge in a currency backed by stability and higher rates. Not this time. In the first half of 2025, the U.S. Dollar Index (DXY) plunged 10.8% — its worst start to a year since 1973, when the gold standard collapsed. It's also the sixth straight monthly drop for the Bloomberg Dollar Spot Index, matching an eight-year losing streak. The message? Markets aren't convinced the Fed will stick to its guns. With record deficit spending, a looming credit downgrade, and pressure to pivot, the dollar's safe-haven status is slipping fast. Trapped Between Policy Tools What's really worrying is the lack of room to manoeuvre. The Fed can't cut rates without risking a return of inflation. But keeping rates high could drive the economy into recession. It's the classic stagflation trap - and this time, there's a new twist: fiscal policy is out of ammo too. Trump's administration just passed a multi-trillion-dollar budget bill, adding to a ballooning deficit already under scrutiny from credit agencies. Some economists argue this might be a deliberate push to weaken the dollar and lighten the real debt load. But if the slide continues unchecked, the U.S. could jeopardise the very thing that keeps it afloat - the dollar's reserve currency status. Technical outlook This isn't panic stations - not yet. But it's starting to smell like trouble. Growth is slowing. Inflation might be reloading. The labour market is softening. And the Fed? It's gone quiet - not because it's calm, but because it's watching something it doesn't quite know how to stop. Whether this turns into a full-blown stagflation storm or just another policy scare depends on what comes next - tariffs, inventories, wages, oil prices, and how long Powell can hold the line. One thing's clear: the Fed may be bracing for impact… and maybe the rest of us should too. At the time of writing, the EURUSD pair is still on an upward trajectory, though sellers are evidently having their say on the daily chart. Volume bars show that sellers are pushing back strongly against recent buy pressure, hinting that we could see a significant drawdown. Should prices inch lower significantly, sellers could find support at the 1.1452 and 1.1229 price levels. Conversely, if we see an uptick, buyers could encounter resistance at the 1.1832 price level. Source: Deriv MT5 Disclaimer The information contained within this article is for educational purposes only and is not intended as financial or investment advice. We recommend you do your own research before making any trading decisions. This information is considered accurate and correct at the date of publication. Changes in circumstances after the time of publication may impact the accuracy of the information. The performance figures quoted are not a guarantee of future performance.
Finextra
42 minutes ago
- Finextra
Trump says tariff rates could be up to 70% as letters ship out
As the 9 July tariff deadline looms, US President Donald Trump has said that rates could be up to 70% for certain counties. 0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The new duties will go into effect on 1 August, and letters will be sent out to countries in batches announcing new tariff rates. Bloomberg reported that '10 or 12' letters will be sent on Friday, with the next set to be sent out 'over the next few days'. Trump told reporters, 'I think by the ninth they'll be fully covered,' referring to the deadline for countries to either comply or deny the new import duties set by the US. 'They'll range in value from maybe 60 or 70% tariffs to 10 and 20% tariffs,' he stated. The US is still amid trade deals with hundreds of partners. With China, the US laid off on export restrictions in May, which led to a cooldown of trade tensions after months of threatening to increase rates. Similarly, Canada has resumed trade talks after the digital services tax was scrapped. US negotiations with Japan are still ongoing, with the Trump stating that Japan will face duties higher than 30-35%. The European Union is willing to accept a 10% universal tariff, according to reports, but will seek exemptions in several sectors. Trump has threatened a 50% duty on the EU's imports. US Treasury Secretary Scott Bessent stated that around 100 trade partners will likely receive a 'reciprocal' rate of 10% by next week, and that a 'flurry' of deals will be negotiated before 9 July. On Thursday, the US House of Representatives passed the 'big beautiful' bill that could increase national debt by $3.3 million, makes tax cuts for Trump's first presidency permanent, and cut Medicaid.
