All articles tagged with #us economy
President Trump says he will raise the global tariff from 10% to 15% after the Supreme Court voided the prior authority; the 15% levy would be temporary (up to 150 days) under the Trade Act of 1974 and could be expanded under other laws, with analysts noting such tariffs could raise costs for American households (Yale Budget Lab estimates about $1,315 per year).
The Supreme Court ruled 6-3 against President Trump's global tariffs, striking down his unilateral tariff plan and signaling a major constraint on his economic agenda. The decision throws U.S. trade policy back into uncertainty, and Trump criticized the ruling as deeply disappointing and shameful toward the justices.
The U.S. economy expanded at an annual rate of 1.4% in the fourth quarter, a softer pace than expected, as a federal government shutdown and a pullback in consumer spending weighed on growth and tempered expectations for the year ahead.
Oil prices have climbed as the U.S. weighs military action against Iran, risking disruption of oil flows through the Strait of Hormuz. Analysts say a strike that hits infrastructure could lift prices toward $100 per barrel, pushing up pump prices and energy-driven inflation. While the precise impact is uncertain and depends on scale and responses, a sustained rise in oil could slow inflation’s recent decline and influence Fed policy and borrowing costs for households and borrowers.
A new study finds tariffs paid by midsized U.S. firms tripled last year, signaling rising costs for middle-market companies as trade policy continues to shape the business environment.
Minutes from the Fed’s Jan. 27–28 meeting show several officials said rate hikes could be appropriate if inflation remains above the 2% target; with inflation volatility and a steady labor market, policymakers also said further rate cuts would be appropriate only if inflation declines as expected, but most signaled they will hold rates steady for now, with any near-term move unlikely before late summer at the earliest.
US President Donald Trump announced that three investment projects will be funded by Japan’s $550 billion capital fund, marking the first investments under Tokyo’s commitment to invest in the United States, following talks with Japan’s trade minister and U.S. Commerce Secretary.
The Federal Reserve released the minutes of the January 27–28, 2026 FOMC meeting, typically published about three weeks after policy decisions; the document summarizes the economic and financial conditions known to the Committee at the time and is available on the Fed Board’s website.
The FT Unhedged column argues that the US housing market is still the economy’s weak spot: existing home sales dropped 8.4% in January as affordability remains the dominant hurdle, with price gains of roughly 20% during the pandemic not fully offset by wages and ongoing high mortgage costs. Policy ideas like limiting institutional investors or boosting mortgage-backed securities are viewed as unlikely to meaningfully move prices. Meanwhile, inflation remains persistent rather than decelerating, implying few near-term rate cuts and continued policy caution.
The piece argues that the nostalgia for reviving U.S. manufacturing through “Make America Great Again” is politically appealing but economically ineffective: manufacturing employs less than 8% of jobs and has not rebounded to pre-COVID output despite large policy spending; tariffs raise input costs since most imports are components used by domestic firms, diminishing competitiveness; the economy has shifted toward services, with manufacturing productivity growth slowing, and only a few strategic sectors merit targeted support rather than broad protectionist policies that harm consumers and fail to deliver durable jobs.
US Labor Department data show seasonally adjusted initial unemployment claims rose to 231,000 in the week ending Jan. 31, up 22,000 from the prior week, with the 4-week moving average at 212,250. The insured unemployment rate held at 1.2% for the week ending Jan. 24, and the number of people receiving unemployment benefits rose to 1,844,000 (up 25,000). The figures indicate a modest uptick in layoffs but remain in a low, historically healthy range.
The Labor Department postponed releasing its January employment report because of the partial federal shutdown, delaying a key snapshot of the U.S. job market.
Investors are increasingly selling U.S. assets and seeking non-U.S. opportunities as a new investment thesis—an ex-America trade—gains traction after tariff shocks and policy tensions with the Fed, pushing the dollar lower and contributing to a stalled stock market and higher government borrowing costs.
Initial U.S. unemployment claims totaled 209,000 for the week ending Jan 24, down 1,000 from the revised prior week of 210,000. The four-week moving average rose to 206,250. The insured unemployment rate remained at 1.2% for the week ending Jan 17, with 1,827,000 people insured unemployed, down 38,000 from the previous week and the lowest level since Sept 21, 2024.
The Conference Board reported January’s U.S. consumer confidence fell 9.7 points to 84.5, the lowest since 2014, with the Present Situation Index at 113.7 and the Expectations Index at 65.1. The drop suggests a bleaker short-term outlook as concerns about inflation, the labor market, and future income rose, and overall plans for big-ticket purchases weakened, though spending on travel-related services showed some uptick.