It’s been a quiet week, but a few stories are worth keeping in mind.
On tariffs
On 28 May, the US Court of International Trade ruled that Donald Trump had exceeded his authority by using a 1977 law to impose tariffs.
The problem?
He relied on the International Emergency Economic Powers Act (IEEPA), which grants the president broad powers in a national emergency.
But according to the court, the United States isn’t facing a situation that justifies those measures.
The law was originally intended for:
- Armed conflicts
- Major geopolitical crises
- Direct threats to national security
Not trade disputes, however serious.
Less than 24 hours later, though, another twist: a federal appeals court temporarily suspended that ruling.
So the tariffs remain in place while the appeal is reviewed.
On Elon Musk and DOGE
On 30 May, Elon Musk announced he was leaving his role as an adviser to the US government and the DOGE project.
He says he wants to focus on his businesses again.
Speaking of which, Neuralink has just raised more than $500 million to speed up development of its brain implants.
And since leaving, he hasn’t held back from openly criticising Congress’s spending bill, as his post on X shows.
On the European Central Bank
While the United States deals with Jerome Powell’s refusal to cut rates, the European Central Bank is moving in the opposite direction.
It’s due to announce its interest rate decision on Thursday, and all signs point to another cut.
Why?
Two simple reasons:
- Inflation has fallen back below 2%, to 1.9%, to be precise
- Europe’s economy has been stagnating for several months
If you’d like a better understanding of inflation, have a read of this newsletter.
Source: Reuters