Despite lowering the federal interest rate by a quarter-point, Fed Chair Jerome Powell was berated by President Trump on Twitter for not doing more.
Economy
IRS goes after cryptocurrency users
Thought that cryptocurrency saved you from the IRS? Think again. The IRS is now going after cryptocurrency users over back taxes.
T-Mobile and Sprint merge
The DOJ approved a massive merger between T-Mobile and Sprint worth $26B. The company will be called T-Mobile and it will be the third largest U.S. wireless carrier.
China’s economy slows
China’s economic growth slows to 6.2%, the slowest in nearly 30 years. While Trump takes credit, the slowdown is likely due to China’s development. Economic growth is expected to slow as economies get stronger.
Authoritarian tries economics
Turkish President Erdogan has fired the head of Turkey’s central bank following Erdogan’s efforts to influence the bank and interest rates. The firing caused heavy losses for Turkey’s stocks and currency.

Deutsche Bank cuts 18,000 jobs in massive layoff
Deutsche Bank has cut 18,000 jobs in an effort to restructure the bank and help it recover from its financial struggles. Nearly 1 in 5 Deutsche Bank employees will lose their jobs.
Trump goes after the ECB as euro drops against the dollar
President Trump attacked European Central Bank (ECB) President Mario Draghi in a Tuesday tweet after he signaled that he may lower interest rates as soon as next month, causing the euro to drop against the dollar. Trump is picking a fight one of the major central banks that has hinted at easing monetary policy as the global economy slows
Fred Hiatt: Frittering away foreign policy gains
“Previous presidents were smart enough not to insist on getting their own way every single time. As a result, nations were generally willing to live with norms and structures that kept the United States in the lead; they trusted the United States not to exploit their deference to squeeze them for every last dollar (or euro, or yen). They believed the United States would consider its own national interest but also global stability and not take advantage of others at every possible turn. … Once these norms and structures are changed—and they will change, especially if the Trump era lasts through 2024—there will be no going back.”
The rising influence of Peter Navarro
The recent showdown with Mexico marks a high point in Donald Trump’s economic adviser Peter Navarro’s tumultuous tenure in the White House, as Trump’s increasingly aggressive actions on trade, including toward China, mirror policies that the man he calls “my Peter” has pushed since the beginning of the administration.
Pompeo seeks to open India’s market to the US
Sec. of State Pompeo is on a mission to improve the trading relationship between the U.S. and India, following President Trump’s decision to end India’s preferential trade treatment. Pompeo is seeking more access for U.S. businesses to India’s local markets.
Trump official suggests climate change may cause financial crisis
Rostin Behnam, who sits on the powerful five-member Commodity Futures Trading Commission, told the New York Times in an interview Monday that the financial risks from climate change are akin to those posed by the mortgage meltdown that caused the 2008 financial crisis. What? A Trump official who believes in climate change? Yep. Given the difficulty Trump would face in trying to get rid of Behnam, it’s likely he’s in for some unhinged attacks from the president.
May federal deficit ballooned to $208B
The month of May saw increased deficit spending as the federal deficit ballooned to $208B. 2019 has a cumulative deficit of $739B.
‘Trump recession’ on the horizon?
As China and the U.S. engage in an increasingly aggressive trade war, economists are concerned that DonaldTrump’s tariffs may tip the U.S. economy into a recession. “They are taxes, they hurt consumers, they hurt American companies,” said Gary Shapiro, president and CEO of the trade organization Consumer Technology Association. Trump’s “weaponization of tariffs” hurts the U.S. economy and “creates uncertainty” with trading partners, said Myron Brilliant, head of international affairs at the U.S. Chamber of Commerce.
UK economy shrinks by four times as much as predicted
The UK economy shrank 0.4% in April as Brexit paralysis took hold, following the proposed deadline for departure from the EU. The latest monthly fall was four times larger than analysts had forecast and marked the second consecutive month of contraction for the UK’s economy after a 0.1% drop in March.
US only adds 75k jobs in May
Job growth slowed in May as the U.S. added only 75,000 jobs in May. April saw a much higher growth, adding 224,000 jobs. The unemployment rate remains unchanged at 3.6 percent.
Which states would be hit hardest by Mexican tariffs?
New tariffs on Mexico won’t be in anyone’s best interests, either in Mexico or stateside. For state economies, the impact of these rising prices depends on how reliant their major industries — from automakers to food producers to energy companies — are on suppliers in Mexico. Here’s how they would affect each state in the Union.

IMF warns of damage US-China trade war will bring
IMF Managing Director Christine Lagarde warned that if the trade war between the U.S. and China continues, the global GDP will experience a loss of $455B in 2020. Lagarde continued saying, “These are self-inflicted wounds that must be avoided…”
Disney CEO says Georgia’s abortion bill makes it ‘very difficult’ to film there again
Disney CEO Bob Iger has warned the state that the company could be finished with filming in Georgia if lawmakers push ahead with its heartbeat abortion bill. “I think many people who work for us will not want to work there, and we will have to heed their wishes in that regard. Right now we are watching it very carefully…[If it becomes law], I don’t see how it’s practical for us to continue to shoot there,” Iger said.
American soil is increasingly foreign soil
America’s farmers have been struggling thanks to President Trump’s tariffs, but at least they’re still on American soil, right? Well, not necessarily, as it turns out. Today, nearly 30 million acres of U.S. farmland are held by foreign investors. That number has doubled in the past two decades, which is raising alarm bells in farming communities.

‘Extremely stable genius’
During a presser that was supposed to be focused on Trump’s bailout of farmers hurt by his trade war, Trump asked his aides, who were present yesterday’s meeting with Nancy Pelosi, to comment on his “calm” demeanor during the meeting. After they responded he rambled some calling himself “…an extremely stable genius,” while calling the Speaker of the House “a mess”.
Trump intends to give $16B to farmers hurt by his trade war with China
The Trump administration announced a $16B package to help farmers hurt by Trump’s trade war. Trump, who often derides socialism, is ironically now having his administration pay farmers for crops that they can no longer sell to China.
UK and Japan suspend Huawei orders
Following the U.S. decision to place Huawei on its export blacklist, UK and Japanese companies have suspended orders for Huawei’s smartphones. The suspension of orders is the first sign that the Trump administrations restrictions on Huawei may start hurting the company.
25,000 ‘British Steel’ jobs in danger
British Steel, the country’s second largest steel producer, is on the brink of collapse unless the government agrees to provide an emergency bailout. The company employs 5,000 workers directly, mostly at a single giant plant in the north of England, but a further 20,000 jobs are dependent upon its supply chain.
Morgan Stanley sees global recession on the horizon
With no end in sight for the trade war between the U.S. and China, Morgan Stanley is worried that a global recession is coming. The bank said, “If talks stall, no deal is agreed upon, and the U.S. imposes 25% tariffs on the remaining ~US$300 billion of imports from China, we see the global economy heading toward recession.”
Ford to cut 7,000 jobs
Ford Motor Co. said on Monday it will eliminate about 10% of its global salaried workforce, cutting about 7,000 jobs by the end of August as part of its larger restructuring effort. “To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work, and cut costs,” said Ford CEO Jim Hackett.
Blacklisting Huawei could cost US companies
Following President Trump’s blacklisting of Huawei, American companies are no longer allowed to sell components to the Chinese company. This move could cost U.S. companies $11B in revenue.
Inu Manak: Is the GOP still the party of free trade? No
“The U.S. Constitution vests Congress with the authority to regulate commerce, but over the years it has ceded that authority. If the current environment does not invigorate Republican members of Congress to work to take back this responsibility, it is hard to take claims that they value trade as a benefit for Americans seriously. Meanwhile, polls suggest that most Americans support free trade, and Democrats have surpassed Republicans as its most ardent supporters. We have yet to see whether Democrats will take up the mantle of free traders, but in the meantime, the Republicans certainly can no longer claim that title, as they continue to make excuses for the president’s actions. The party of free trade? No. More like the Grand Old Protectionists.”

Trump’s steel tariffs on Canada and Mexico are lifted
The Trump administration has finally reached a deal with Canada and Mexico to lift steel tariffs, opening the door for the USMCA trade deal to be passed. U.S. lawmakers previously signaled resistance to passing the new trade deal if steel tariffs on U.S. allies remained.
A German supermarket chain is changing American shopping
The supermarket chain, Aldi, is revolutionizing grocery shopping and competing directly with the biggest names in the industry. Aldi is a super-efficient, low-price, no-frills supermarket that is continuing to grow, expecting to add 130 stores in 2019 alone.
The US is facing a major credit crisis
There is a point beyond which debt becomes a drag on growth. That means the recovery after the next recession will be even slower than the last. The U.S. seems to be quickly heading toward that point.
Daily News Ed Board: No light at the end of Trump’s trade tunnel
“To minimize the damage, Trump pushed for another $15 billion in subsidies to farmers losing out because their products now cost more. That’s above the $12 billion he authorized last year when he launched the trade war. Which means Americans pay for the tariffs not once, but twice. First, consumers lose by paying more for Chinese products. Second, taxpayers pick up the tab by bailing out ‘great patriot’ farmers who absorb economic pain for the motherland. With each new round of economic penalties, Trump tells Americans the clouds will break and the light will soon shine through. Right after they pay more, and more, and more.”
The trade war is leaving lasting effects on the markets
Investors are dealing with a painful new reality that the trade war between the United States and China could last indefinitely. That anxiety spread across the stock markets on Monday, as investors around the world tried to divine the potential fallout to economic growth and corporate profits.
Dow drops 550 points after China tariffs
Apple’s stock alone dropped nearly 5%. “Volatility is going to persist. People don’t know what to make of it,” said JJ Kinahan, chief market strategist at TD Ameritrade.
China retaliates against the US with tariffs of its own
China said it would raise tariffs on roughly $60 billion worth of U.S. imports, in response to the U.S. increasing tariffs on $200 billion worth of Chinese goods. Because China’s entire imports from the United States are considerably less than $200 billion, it has not had the option of matching the United States dollar for dollar.

Congress subpoenas Treasury and IRS heads over Trump’s taxes
Treasury Secretary Steve Mnuchin and IRS Commissioner Charles Rettig have been subpoenaed by House Ways and Means Committee Chairman Richard Neal to produce Donald Trump’s tax returns. The subpoena comes after the Treasury Department formally declined to turnover Trump’s tax returns.
Stock market on edge over tariffs
U.S. equity futures were little changed Thursday as traders nervously awaited a midnight deadline for tariffs on China to increase. Meanwhile the Nasdaq and S&P 500 dropped for the fourth day in a row.
US sanctions Iranian metals
President Trump signed an executive order sanctioning Iran’s industrial metals. Iran’s metal industry accounts for 10 percent of its export economy.
Uber, Lyft drivers to strike in major cities ahead of Uber Wall Street debut
Uber and Lyft drivers plan to strike Wednesday in major cities around the globe in opposition to Uber’s upcoming Wall Street debut. The drivers are striking for livable incomes, job security, and regulated fares, among other demands.
Trump may redefine poverty
The Trump administration may alter the way it determines the national poverty threshold, putting Americans living on the margins at risk of losing access to welfare programs. The possible move would involve changing how inflation is calculated in the “official poverty measure,” the White House Office of Management and Budget said in a regulatory filing on Monday. The formula has been used for decades to determine whether people qualify for certain federal programs and benefits.
The Dow’s terrible, no good, very bad day
The Dow had a lousy day. It fell 473 points, tumbling below 26,000 points. What happened? Trade Rep. Robert Lighthizer and Treasury Sec. Steven Mnuchin indicated late yesterday that Donald Trump was dead serious about his tariff threat — and new import penalties will be imposed on China on Friday. So the market freaked out, falling steadily throughout the day.