He vowed to bring down the cost of groceries (an "old-fashioned" word with which he was obsessed), revive manufacturing, slash federal spending and inefficiency and distribute the savings to the citizenry, all while achieving energy dominance and the high-paying jobs that come with it. By early summer, however, it was becoming clear that Trump's economic policies were not having the promised effect.
The U.S. economy seems immune to the turbulence created by Donald Trump. The first year of his second term in the White House has been fraught with upheaval due to his eagerness to impose a headlong agenda with a marked protectionist approach. Businesses are now inoculated against the vertigo and the uncertainty surrounding the Republican president. Since winning the election against Democrat Kamala Harris exactly one year ago, he has changed the world trade order in one fell swoop;
JPMorgan Chase CEO Jamie Dimon issued a sobering assessment of the American economy in an interview with CNBC on Tuesday, acknowledging clear signs that it's growing weaker and expressing uncertainty over its future trajectory. Still, he stopped short of making a recession call, saying that there is such a range of data that it's hard to parse. "We get data like you wouldn't believe. The government data is important. Our own data is important."
The Trump administration warns of complete disaster for the U.S. economy if its reciprocal tariffs are struck down, showing great concern over an upcoming court ruling.
Researchers at Pantheon Macroeconomics found that AI-related spending accounted for a 0.5 percentage point difference in annualized GDP growth for the first half of the year.
"U.S. producer prices surged 0.9% m/m in July, far exceeding expectations of 0.2% and marking the largest monthly gain since June 2022. On an annual basis, PPI rose 3.3%, up from 2.4% in June, while core PPI jumped to 3.7% from 2.6%. The data shattered forecasts across the board, underscoring the inflationary impact of recent tariff policy and justifying Fed caution regarding rate cuts," George Vessey of Convera told clients this morning.
"Descriptive evidence shows that goods categories heavily exposed to imports have indeed experienced sizable price increases since the beginning of this year, relative to their prior trends."
Palantir's revenues soared nearly 50% to almost $1 billion and net income increased 144%, boosting investor confidence in AI’s role in tech growth and job reduction.
Today's GDP reading was stronger than expected, but much like the first quarter data-which showed a modest decline in economic activity-the details really matter. Put simply, the first quarter wasn't as bad as the headline figure implied, and this quarter isn't quite as strong as implied in the data.
"They got the 15% rate because they were willing to provide this innovative financing mechanism," he told Bloomberg TV on Wednesday, when asked if other countries could get a similar rate.
U.S. President Donald Trump signed the GENIUS Act to create a regulatory regime for U.S.-dollar-pegged cryptocurrencies, facilitating their use for payments and money transfer.
Diane Brady highlights how the U.S. economy remains resilient despite the ongoing tariff wars. Market reactions indicate mixed sentiments about future leadership, like fears surrounding President Trump's potential actions against Federal Reserve Chair Jerome Powell.
Gelsinger emphasized that while American companies are making significant breakthroughs in technology, the challenge lies in scaling these innovations, which requires patient, long-term capital typically unavailable from traditional financing.
