Latest news with #economicfallout
Russia Today
3 hours ago
- Business
- Russia Today
US State Dept ‘presumes' White House ready for Russia sanctions blowback
The US State Department said on Tuesday it 'presumes' that the White House is factoring in the potential economic fallout as it considers imposing secondary sanctions on countries purchasing Russian energy. President Donald Trump recently set out a 10-day ultimatum demanding a resolution to the Ukraine conflict, warning that failure to meet the deadline could result in penalties against nations doing business with Moscow. At a press briefing, State Department spokesperson Tammy Bruce was asked whether these measures are 'too blunt an instrument,' potentially harming US allies. 'I would presume, as we should, that all of the impact would be considered,' Bruce said. 'The president is not someone who is making a decision on the fly... This has clearly been a consideration from the beginning. And we're prepared to do what's necessary.' Russian officials have dismissed Trump's threat, calling it harmful to peace efforts in Ukraine. Deputy Foreign Minister Sergey Ryabkov said earlier this month that no additional pressure will derail Russia's pursuit of its national interests. Trump has acknowledged there is no certainty that his latest pressure campaign will alter Moscow's approach to the Ukraine conflict. Meanwhile, foreign policy hawks in Congress are pushing for legislation that would authorize tariffs of up to 500% on nations that continue to import Russian oil and gas. Senator Lindsey Graham, one of the bill's sponsors, described it as a 'sledgehammer' he intends to place in the president's hands. Analysts have warned that these measures could backfire. China, India, and Türkiye – all major buyers of Russian energy – could face sanctions under the proposed policy. 'Such a move could cause global oil prices to skyrocket,' the New York Times warned on Tuesday, adding that secondary sanctions would likely escalate what it described as Trump's 'global trade war.' The newspaper added that earlier efforts by Western nations to limit Russian revenue through an oil price cap 'largely faltered.'
Russia Today
18 hours ago
- Business
- Russia Today
US State Department ‘presumes' White House ready for Russia sanctions blowback
The US State Department said on Tuesday it 'presumes' that the White House is factoring in the potential economic fallout as it considers imposing secondary sanctions on countries purchasing Russian energy. President Donald Trump recently set out a 10-day ultimatum demanding a resolution to the Ukraine conflict, warning that failure to meet the deadline could result in penalties against nations doing business with Moscow. At a press briefing, State Department spokesperson Tammy Bruce was asked whether these measures are 'too blunt an instrument,' potentially harming US allies. 'I would presume, as we should, that all of the impact would be considered,' Bruce said. 'The president is not someone who is making a decision on the fly... This has clearly been a consideration from the beginning. And we're prepared to do what's necessary.' Russian officials have dismissed Trump's threat, calling it harmful to peace efforts in Ukraine. Deputy Foreign Minister Sergey Ryabkov said earlier this month that no additional pressure will derail Russia's pursuit of its national interests. Trump has acknowledged there is no certainty that his latest pressure campaign will alter Moscow's approach to the Ukraine conflict. Meanwhile, foreign policy hawks in Congress are pushing for legislation that would authorize tariffs of up to 500% on nations that continue to import Russian oil and gas. Senator Lindsey Graham, one of the bill's sponsors, described it as a 'sledgehammer' he intends to place in the president's hands. Analysts have warned that these measures could backfire. China, India, and Türkiye – all major buyers of Russian energy – could face sanctions under the proposed policy. 'Such a move could cause global oil prices to skyrocket,' the New York Times warned on Tuesday, adding that secondary sanctions would likely escalate what it described as Trump's 'global trade war.' The newspaper added that earlier efforts by Western nations to limit Russian revenue through an oil price cap 'largely faltered.'
South China Morning Post
21-07-2025
- Business
- South China Morning Post
From job cuts to suspending plans, Taiwan firms brace for Trump tariff storm
At least a quarter of Taiwanese companies have put expansion plans on hold, and 5 per cent have started cutting staff in the shadow of US President Donald Trump's tariffs on the island, according to a new study. The findings come amid persistent uncertainty over the potential economic fallout from Washington's tariff plan, especially following speculation that Taiwan could face a steep 32 per cent import duty – matching the level initially proposed by Trump in early April. A midterm assessment report released on Monday by two opposition-aligned think tanks found that more than half of the Taiwanese firms with trade ties to the United States expected to be affected by the new tariffs. The study involved a survey a 238 companies and was jointly conducted by the National Policy Foundation – which is affiliated with the main opposition Kuomintang (KMT) – and the Taiwan People's Party policy committee. 01:42 Trump imposes 25% unilateral tariffs on Japan, South Korea amid slow negotiation progress Trump imposes 25% unilateral tariffs on Japan, South Korea amid slow negotiation progress Under a hypothetical 10 per cent tariff scenario, nearly 60 per cent of the surveyed firms said they expected only minor revenue changes or no significant impact.
SBS Australia
17-07-2025
- Business
- SBS Australia
What would the fallout be if Donald Trump tries to fire the Federal Reserve chief?
US President Donald Trump has again said he has no immediate plans to fire the head of the Federal Reserve, Jerome Powell, after a string of media reports suggesting otherwise. Trump has repeatedly lashed out at Powell in recent months for not lowering interest rates and what he sees as an overpriced renovation of the Fed's headquarters in Washington. On Wednesday, he continued his criticism, saying while it was "unlikely" Powell be fired soon, "unless he has to leave for fraud". There has been no evidence of fraud, and the Fed has pushed back on criticism. Trump also told reporters that he had floated the idea of getting rid of Powell with Republican lawmakers in a meeting on Tuesday. No president in recent US history has gone after the head of the Federal Reserve, which is supposed to operate independently from the government. So, does Trump have the power to fire Powell, and what would the economic fallout be of any attempt to do so? Can the president fire the Federal Reserve chief? According to the Federal Reserve Act of 1913, the chair of the bank can only be dismissed "for cause", which is broadly interpreted as relating to extraordinary cases of gross misconduct. Speaking to reporters on Wednesday, Trump appeared to double down on the Fed's renovation as a new line of attack, stating that it was "possible there's fraud involved" while complaining about the cost of the project. "There could be something to that, but I think he's not doing a good job. He's got a very easy job to do. You know what he has to do? Lower interest rates," he added. The comments prompted concerns from Democrats that Trump is manufacturing outrage over the building works to use them as grounds for Powell's dismissal. If Trump were to fire Powell, over what many view as a policy dispute, it would be unprecedented and could end up in court. But whether or not the Supreme Court — which has consistently ruled in Trump's favour throughout his second term — would seek to protect the impartiality of the central bank is currently being hotly debated by US economists, scholars, and analysts. A 'dreadful idea' and 'very significant' market reaction Former Fed officials and financial experts have consistently warned that the economic fallout from any attempt to fire Powell would be swift and far-reaching. "If there were an effort by the president to remove the chair, the market reaction would be very significant — well before any court had an opportunity to pass on the issue," former Fed board member Daniel Tarullo told the Harvard Gazette in late April. In an interview with CNBC on Wednesday, Roger Altman, who was deputy Treasury secretary under former President Bill Clinton, described Trump's impulse to interfere with the Fed as "a dreadful idea," pointing to the economic downturn other countries that have meddled with their central banks have faced. Republican Senator Thom Tillis of North Carolina delivered a spirited defence of an independent Fed on Wednesday. "There's been some talk about potentially firing the Fed chair," said Tillis, a member of the Senate Banking Committee, which oversees the Fed and confirms presidential nominations to its Board. Subjecting the Fed to direct presidential control would be a "huge mistake," he said. Meanwhile, a research paper by Wolfe Research, which gamed out possible market scenarios if Trump decides to go after Powell, stated that regardless of whether it was deemed legal or not, the result would be an extreme "mess". "We expect, as does everyone else, that it would be significantly negative for markets, likely driving both an equity selloff and a counterproductive spike in long-term yields," the firm wrote in a briefing. — Additional reporting by Reuters
Wall Street Journal
13-07-2025
- Business
- Wall Street Journal
Economists See Lower Recession Risk and Stronger Job Growth: WSJ Survey
The economic fallout from President Trump's policies may prove less dire than feared. Economists expect stronger growth and job creation, lower risk of recession and cooler inflation than they did three months ago, according to The Wall Street Journal's quarterly survey of professional forecasters.
