Business

Subterms

    More stories

    • 175 Shares149 Views

      in US Politics

      Trump’s tariffs have hurt tea exports to the US, says Fortnum & Mason boss

      by

      The boss of upmarket retailer Fortnum & Mason has said Donald Trump’s trade war has hit sales of its luxury tea exports to the US and forced up prices.Tom Athron, the London-based retailer’s chief executive, said Trump’s stricter country of origin rules and the end of the “de minimis” cost exemption for parcels worth less than $800 (£587) had hit customers across the Atlantic.“The American authorities have told us – this is the tea industry in its entirety – that if you’ve got tea from China and India in your tea, then its country of origin [is] China or India, and therefore those enormous tariffs apply,” he told the Financial Times.Trump, who landed in the UK on Tuesday for an unprecedented second state visit for a US president, last month imposed a 50% tariff on imports from India as a punishment for buying Russian oil.And earlier this year, the US administration raised tariffs as high as 145% on Chinese goods as the trade war intensified, before dropping them to 30% in May to facilitate talks between the two trading giants. The world’s two largest economies held talks in Madrid this week to try to reach a potential deal.For a 250g canister of loose leaf Royal Blend tea, which retails to US consumers at $27.85, Fortnum’s has now been forced to charge delivery fees starting at $25.41 owing to the changes to US taxes and duties.The 318-year-old retailer, which holds two royal warrants, was not previously liable for any tariffs on the majority of its deliveries to US customers.US custom agents assess whether a “substantive transformation” has been made to a product to decide whether its country of origin is different from where the product has been sourced.skip past newsletter promotionafter newsletter promotionThis process can be unclear to retailers, while the scrapping of “de miminis” rules has led to customers being wary of buying Fortnum & Mason’s products, which are popular with expats and international buyers.“A lot of our things are sent as gifts [so] if you’re living in New York and I’m sending a present to you, I want to be sure that you’re not going to be landed with a $200 bill on receipt of your parcel,” said Athron. “It’s all in hand, logistically we’re immaculate, it just means prices will go up for US consumers.”Overseas sales of Fortnum & Mason’s goods, including its famous hampers, were £12.5m in the year to July 2024, accounting for about 5.5% of total revenues.Wider inflationary pressure has led the retailer to raise the UK price of a 250g canister of loose leaf Breakfast Blend tea by almost 40% over the last five years. More

    • 138 Shares156 Views

      in UK Politics

      Primark owner delivers warning to Rachel Reeves over ‘mistaken’ rate changes

      by

      The head of Primark’s parent company has issued a stark warning to the government, branding proposed changes to business rates as “mistaken” and a significant burden on UK high street retailers.George Weston, the billionaire chief of Associated British Foods (ABF), told the PA news agency that the Labour Government “should not increase taxes on businesses any more” in the forthcoming November Budget.His comments come as Chancellor Rachel Reeves faces the daunting task of boosting Treasury revenues to address a potential £40 billion deficit in state finances. This financial pressure has intensified concerns that businesses could be targeted with further tax hikes, particularly given prior government pledges to avoid increasing taxes for working individuals.Businesses have already contended with a series of rising costs, including increases to national insurance contributions, the national minimum wage, and the Extended Producer Responsibility (EPR) packaging tax.“Increases to labour and packaging have already had an impact and it is important not to make it harder for businesses looking to invest and create jobs,” Mr Weston said.“My message to Government is that that should not increase taxes on businesses any more.”George Weston, the billionaire boss of Associated British Foods (ABF), has warned the Government that proposed business rates changes are “mistaken” and heap pressure on big stores on UK high streets More

    • 200 Shares179 Views

      in US Politics

      Donald Trump says Charlie Kirk has died after being shot at university event – latest updates

      by

      Charlie Kirk, a Trump ally and rightwing activist, has been shot and killed at an event at Utah Valley University in Orem, Utah, on Wednesday. Here’s what we know so far:

      Kirk, 31, died after being shot during a presentation on campus. Donald Trump first announced the death in a Truth Social post.

      Donald Trump wrote: “The Great, and even Legendary, Charlie Kirk, is dead. No one understood or had the Heart of the Youth in the United States of America better than Charlie. He was loved and admired by ALL, especially me, and now, he is no longer with us. Melania and my Sympathies go out to his beautiful wife Erika, and family. Charlie, we love you!”

      Campus police are investigating the incident. The university said the suspect is not in custody. A person arrested earlier has been released and is no longer a suspect.

      Kirk, the executive director of Turning Point USA (TPUSA), was shot at about 12.10pm local time while appearing at an event. In video posts circulating on social media, Kirk can be seen getting struck while speaking and sitting beneath a tent. Kirk was there as part of the American Comeback tour, which is hosted by the TPUSA chapter at Utah Valley. Video footage shows students on campus running away from the sound of gunshots.

      Kirk was about 20 minutes into a presentation when a shot was fired from a nearby building, the university told CNBC. The university has said a “single shot” was fired towards Kirk.

      Political leaders in the US immediately condemned the attack. Joe Biden, the former US president, tweeted: “There is no place in our country for this kind of violence. It must end now. Jill and I are praying for Charlie Kirk’s family and loved ones.”

      Senior Democrats and Republicans also condemned the shooting. Gavin Newsom, Josh Shapiro, Chuck Schumer and Alexandria Ocasio-Cortez were among Democrats who condemned the attack. JD Vance, Pam Bondi, Kristi Noem and Pete Hegseth paid tribute to Kirk and asked the public to pray for him.

      The House speaker, Mike Johnson, told reporters in the Capitol: “Political violence has become all too common in American society. This is not who we are. It violates the core principles of our country.”

      In an internal email to staff members that was posted online on Wednesday, the Turning Point USA COO, Justin Streiff, said: “It is with a heavy heart that we, the Turning Point USA leadership team, write to notify you that earlier this afternoon Charlie went to his eternal reward with Jesus Christ in Heaven … However, in the meantime, Turning Point USA and Turning Point Action will be closed for business until Monday, the 15th – likely longer.”

      The White House lowered its flag to half-staff in Kirk’s honor.
      Former presidents Barack Obama and Joe Biden, and the former vice-president Kamala Harris, have all condemned the fatal shooting of Charlie Kirk in posts on social media.While the motive of the person who shot Kirk remains unknown, as police hunt for a suspect, all three Democrats argued that political violence must be condemned.“We don’t yet know what motivated the person who shot and killed Charlie Kirk, but this kind of despicable violence has no place in our democracy,” Obama wrote. “Michelle and I will be praying for Charlie’s family tonight, especially his wife Erika and their two young children.”“There is no place in our country for this kind of violence. It must end now,” Biden wrote on social media. “Jill and I are praying for Charlie Kirk’s family and loved ones.”“I am deeply disturbed by the shooting in Utah”, Harris wrote before news of Kirkj’s death was announced by Donald Trump. “Doug and I send our prayers to Charlie Kirk and his family. Let me be clear: Political violence has no place in America. I condemn this act, and we all must work together to ensure this does not lead to more violence.”The newly installed flag on the north lawn of the White House was lowered to half-staff on Tuesday afternoon, after Donald Trump announced the death of Charlie Kirk, who was fatally shot while debating students at Utah Valley University on Tuesday.Trump wrote on social media that he was ordering all American flags to be lowered across the country until Sunday evening.A spokesperson for Utah Valley University, Ellen Treanor, tells the Guardian: “A suspect was in custody, but they are no longer a suspect.”In a statement, Treanor added:
      It is with the tremendous sadness and shock that Charlie Kirk, who was invited by the student group TPUSA, was shot at about 12:20 when he began speaking at his planned event on the Utah Valley University Orem Campus. Kirk was immediately transported by his security team to a local hospital.
      Campus was immediately evacuated. Campus is closed and classes have been canceled until further notice. We are asking those still on campus to secure in place until police officers can safely escort them off campus.
      The incident is currently being investigated by four agencies: Orem Police, UVU Police, FBI, and Utah Department of Public Safety.
      Among those coming to terms with the fatal shooting of Charlie Kirk on Wednesday is the progressive streamer, Hasan Piker, who was scheduled to debate Kirk at Dartmouth College in two weeks.On his Twitch live stream, Piker expressed horror at the shooting, and urged his followers not to celebrate it, but told viewers to stop writing in to tell him to wear a bulletproof vest or hire security for his public appearances.“I don’t have any security,” Piker told his viewers. “It shouldn’t be like this.” He went on to argue that only gun control could prevent mass shootings.“In a moment like this, a reasonable government would say: ‘Alright, enough is enough,’” Piker said. “If we had a responsible government and not a bunch of fucking psychopaths running the show,” he added, the US would already have had serious gun control following the massacre at at Sandy Hook Elementary School in Newtown, Connecticut in 2012.“I need to really reconsider the way I do everything outside, for the forseeable future,” Piker said.“Before people say: ‘Wear a bulletproof vest,’ again, he got shot in the neck,” Piker said. “A bulletproof vest would not have saved Charlie Kirk.”“The only thing that could have potentially saved Charlie Kirk,” he added, “was if our administrations, prior to this one and this one as well, actually had reasonable gun control as a policy position, in the aftermath of, I don’t know, a hundred other school shootings.”The House speaker, Mike Johnson, told reporters in the Capitol a few minutes ago: “Political violence has become all too common in American society. This is not who we are. It violates the core principles of our country.”Writing on his social network, Donald Trump just announced the death of Charlie Kirk.Trump wrote:
      The Great, and even Legendary, Charlie Kirk, is dead. No one understood or had the Heart of the Youth in the United States of America better than Charlie. He was loved and admired by ALL, especially me, and now, he is no longer with us. Melania and my Sympathies go out to his beautiful wife Erika, and family. Charlie, we love you!
      A White House correspondent for the New York Post reports that she just spoke with Donald Trump on the phone about Charlie Kirk.“He’s not doing well,” Trump told Diana Nerozzi. “It looks very bad.”She then asked Trump how he was feeling. He replied: “Not good. He was a very, very good friend of mine and he was a tremendous person.”Videos circulating on social media showed an attender at the student event on Wednesday asking Charlie Kirk: “Do you know how many transgender Americans have been mass shooters over the last 10 years?”In response, Kirk said: “Too many,” as the crowd clapped.In a follow-up question, the attender asked: “Do you know how many mass shooters there have been in America over the last 10 years?”Kirk replied: “Counting or not counting gang violence?”Seconds later, Kirk could be seen struck in the neck as he falls back in his chair.A spokesperson for Utah Valley University has retracted an earlier claim that a suspect in the shooting of Charlie Kirk, the conservative activist, is in custody.In a statement provided to Deseret News in Utah, university spokesperson Scott Trotter said: “We can confirm that Mr Kirk was shot, but we don’t know his condition. The suspect is not in custody. Police are still investigating Campus is closed for the rest of the day.”Trotter told the New York Times that police had taken someone into custody earlier but have determined that he was not the gunman.Kirk’s event in Utah today was the first of a 15-stop tour at universities across the country. Titled “The American Comeback”, the 31-year-old activist was due to speak at Colorado State University on 18 September.

      Charlie Kirk, a Trump ally and rightwing activist, has been shot at an event at Utah Valley University on Wednesday.

      The university said in a statement that Kirk was taken away by his security. Law enforcement have told the AP he is in hospital and in a critical condition.

      Campus police are investigating the incident. There are some conflicting reports about the detainment status of the suspect.

      Donald Trump has asked for prayers for Kirk. Trump wrote on Truth Social: “We must all pray for Charlie Kirk, who has been shot. A great guy from top to bottom. GOD BLESS HIM!”

      Kirk, the executive director of Turning Point USA (TPUSA), was shot at about 12.10pm local time while hosting an event. In video posts circulating on social media, Kirk can be seen getting struck while speaking and sitting beneath a tent. Kirk was there as part of The American Comeback Tour, which is hosted by the TPUSA chapter at Utah Valley. There is also video footage of students on campus running away from the sound of gunshots.

      Kirk was about 20 minutes into a presentation when shots were fired from a nearby building, the university told CNBC. The university has said a “single shot” was fired towards Kirk.

      FBI director Kash Patel has said that his agency is “closely monitoring” the situation.

      The shooting sparked immediate condemnation from Republicans and Democrats. Gavin Newsom, Josh Shapiro and Chuck Schumer condemned the attack. JD Vance, Pam Bondi, Kristi Noem and Pete Hegseth paid tribute to Kirk and asked the public to pray for him.

      Spencer Cox, Utah’s governor, said that he has been “briefed by law enforcement following the violence directed at Charlie Kirk during his visit to Utah Valley University today.” Cox added that “those responsible will be held fully accountable,” and uged “Americans of every political persuasion” to condemn the shooting. He offered his prayers to Kirk, his family and all those affected.

      Shortly before shots rang out, Kirk tweeted: “WE. ARE. SO. BACK. Utah Valley University is FIRED UP and READY for the first stop back on the American Comeback Tour.”
      Charlie Kirk is in critical condition at a hospital, after being shot at a speaking event at Utah Valley University, a law enforcement official tells the Associated Press.The university said earlier that a suspect was in custody, and the college campus has closed, and classes have been cancelled.Eva Terry, another Deseret News reporter who was also at the event, described the direction of the shot, saying: “It looks like it came from the middle to the right side of the audience.Describing the suspect, Terry said: “It looks like he was an older gentleman, probably in his late 50s to 60s, wearing what looks like a worker’s uniform.”Kirk was being asked a question about mass shootings when he was shot in the neck, according to eyewitnesses.Speaking to the Guardian, Deseret News reporter Emma Pitts who was at the event said: “He was on the second question and it was regarding mass shootings and the person he was debating had asked about if he knew how many mass shootings had involved a transgender shooter to which Kirk responded. Then he asked how many mass shootings had been in total in the last couple of years, I believe.“And then before he could even answer, we heard a gunshot and we just saw Charlie Kirk’s neck turn to the side and it appeared that he had been shot in the neck. There was blood, immediately a lot of blood,” Pitts added.“After the shots were fired, everyone immediately took to the ground … we were just trying to stay hidden. I don’t know how quickly it was, probably within a minute, everyone started running away … Since then the university has been completely evacuated,” said Pitts.Utah Valley University, based in Orem about 40 miles south of Salt Lake City, has closed its campus and is cancelling classes “until further notice”, according to statement.“Police are investigating. Leave campus immediately,” the university added.We’re also hearing from several leading Democrats across the country, condemning the shooting at Utah Valley University.Pennsylvania governor Josh Shapiro said in a post on X that “the attack on Charlie Kirk is horrifying and this growing type of unconscionable violence cannot be allowed in our society.” Shapiro added that “Political violence has no place in our country.”Similarly, California governor Gavin Newsom described the shooting as “disgusting, vile, and reprehensible.”On Capitol Hill, Senate minority leader Chuck Schumer said that he was “praying” for Kirk and his family, while echoing statements denouncing political violence.Alongside the president, several members of his cabinet have offered their prayers to Charlie Kirk, the conservative activist and Turning Point founder, who was shot during a speaking engagement at Utah Valley University.Vice-president JD Vance asked his followers to “say a prayer for Charlie Kirk, a genuinely good guy and a young father”, and attorney general Pam Bondi wrote that “FBI and ATF agents are on the scene. PRAY FOR CHARLIE.”Meanwhile, Kristi Noem, secretary of the Department for Homeland Security, said that she and her husband “are lifting up Charlie, Erika, and their family in our prayers right now”.Defense secretary Pete Hegseth added that Kirk was “an incredible Christian, American, and human being”. More

    • 200 Shares189 Views

      in US Politics

      Lisa Cook to remain at Federal Reserve while fighting Trump’s attempt to fire her, judge rules

      by

      A federal judge has ruled that Federal Reserve board member Lisa Cook can stay in her post while suing Donald Trump over his unprecedented bid to fire her.Cook is legally challenging the US president after he sought to remove her, citing unconfirmed allegations of mortgage fraud, amid an extraordinary campaign by his administration to strengthen its control over the US central bank.She asked US district judge Jia Cobb to impose a temporary restraining order against Trump’s attempt to “immediately” dismiss her, pending further litigation. The administration has argued that Trump is able to fire Fed governors “for cause” and appoint replacements.Trump has spent months attacking the Fed, where most policymakers – including Cook – have so far defied his calls for interest rate cuts. He has spoken of rapidly building “a majority” on the central bank’s board, calling into question the future of its longstanding independence from political oversight.Trump moved to fire Cook after one of his allies, Bill Pulte, whom he tapped to lead the US Federal Housing Finance Agency, alleged she had claimed two different properties as primary residences when obtaining mortgages in 2021.“How can this woman be in charge of interest rates if she is allegedly lying to help her own interest rates?” Pulte wrote on X. He referred the case to the Department of Justice for investigation.After Cook declined to resign, Trump tried to remove her from the Fed’s board. The justice department is now looking into the allegations of mortgage fraud.In a court filing, Cook’s attorneys insisted she “did not ever commit mortgage fraud” as they outlined their case.Multiple federal agencies were provided details of Cook’s mortgage arrangements when she was first nominated, by Joe Biden, to join the Fed’s board in 2022, according to her representatives. “The Government has long known about the alleged facial inconsistencies in Governor Cook’s financial documents,” the filing said.On one background check form, for example, Cook said that she had listed one property in Michigan as a primary residence and another in Georgia as a second home.On a separate questionnaire, she listed both homes as her “present” residence; the Michigan property as her “current permanent residence”; and a third property, in Massachusetts, as both a present residence, but also a second home and rental property, she said. More

    • 150 Shares169 Views

      in US Politics

      US supreme court to decide on legality of Trump’s sweeping global tariffs

      by

      The US supreme court agreed on Tuesday to decide the legality of Donald Trump’s sweeping global tariffs, setting up a major test of one of the Republican president’s boldest assertions of executive power that has been central to his economic and trade agenda.The justices took up the justice department’s appeal of a lower court’s ruling that Trump overstepped his authority in imposing most of his tariffs under a federal law meant for emergencies. The court swiftly acted after the administration last week asked it to review the case, which involves trillions of dollars in customs duties over the next decade.The court, which begins its next nine-month term on 6 October, placed the case on a fast track, scheduling oral arguments for the first week of November.The justices also agreed to hear a separate challenge to Trump’s tariffs brought by a family-owned toy company, Learning Resources.The US court of appeals for the federal circuit in Washington ruled on 29 August that Trump overreached in invoking a 1977 law known as the International Emergency Economic Powers Act (IEEPA) to impose the tariffs, undercutting a major priority for the president in his second term. The tariffs, however, remain in effect during the appeal to the supreme court.The levies are part of a trade war instigated by Trump since he returned to the presidency in January that has alienated trading partners, increased volatility in financial markets and fueled global economic uncertainty.Trump has made tariffs a key foreign policy tool, using them to renegotiate trade deals, extract concessions and exert political pressure on other countries.Trump in April invoked the 1977 law in imposing tariffs on goods imported from individual countries to address trade deficits, as well as separate tariffs announced in February as economic leverage on China, Canada and Mexico to curb the trafficking of fentanyl and illicit drugs into the US.The law gives the president power to deal with “an unusual and extraordinary threat” amid a national emergency. It historically had been used for imposing sanctions on enemies or freezing their assets. Prior to Trump, the law had never been used to impose tariffs.Trump’s Department of Justice has argued that the law allows tariffs under emergency provisions that authorize a president to “regulate” imports.
      “The stakes in this case could not be higher,” the justice department said in a filing. Denying Trump‘s tariff power “would expose our nation to trade retaliation without effective defenses and thrust America back to the brink of economic catastrophe”, it added.Trump has said that if he loses the case the US might have to unwind trade deals, causing the country to “suffer so greatly”.The nonpartisan Congressional Budget Office reported in August that the increased duties on imports from foreign countries could reduce the US national deficit by $4tn over the next decade. More

    • 125 Shares199 Views

      in US Politics

      US treasury secretary denies Trump tariffs are tax on Americans

      by

      US treasury secretary Scott Bessent has refused to acknowledge that the sweeping trade tariffs imposed by Donald Trump around the world are taxes on Americans.In a new interview on Sunday with NBC host Kristen Welker, Bessent, a former billionaire hedge fund manager, dismissed concerns from major American companies including John Deere, Nike and Black and Decker who have all said that Trump’s tariffs policy will cost them billions of dollars annually.Addressing Welker, Bessent said: “You’re taking these from earnings calls, and on earnings calls, they have to give the draconian scenario. There aren’t companies coming out and saying, ‘Oh, because of the tariffs, we’re doing this.’”He went on to add: “If things are so bad, why was the GDP 3.3%? Why is the stock market at a new high? Because, you know, with President Trump, we care both about big companies and small companies.”As concerns continue to grow over American companies trying to pass on the cost of US tariffs on to everyday Americans, Welker asked: “Do you acknowledge that these tariffs are attacks on American consumers?” To which Bessent replied: “No, I don’t.”Bessent’s latest interview follows a ruling by a federal appeals court which found that Trump had overstepped his presidential authority when he imposed sweeping tariffs on dozens of countries earlier this year that sent shockwaves across global markets.The tariffs established a 10% baseline for nearly all of the US’s trading partners. Trump also imposed so-called “reciprocal” tariffs imposed on countries that he accused of unfairly treating the US in trade. Lesotho, a south African nation of 2.3 million people faced a 50% tariff, while Trump also imposed a 10% tariff on a group of uninhabited islands home to penguins near Antarctica.In response to the federal appeals court’s decision, the Trump administration has recently asked the US supreme court to overturn the ruling.Speaking on whether the Trump administration would be prepared to offer rebates if the supreme court rules against the administration, Bessent said: “We would have to give a refund on about half the tariffs which would be terrible for the treasury… There’s no ‘be prepared.’ If the court says it, we’d have to do it.”Nevertheless, Bessent remained confident that the conservative-majority supreme court would side with the Trump administration, saying: “I am confident that we will win at the supreme court. But there are numerous other avenues that we can take. They diminish president Trump’s negotiating position … This isn’t about the dollars. This is about balance. The dollars are an after amount.”Bessent’s comments also came on the heels of newly released data from the Bureau of Labor Statistics which revealed that in August, 12,000 manufacturing jobs were lost, marking a total loss of 42,000 jobs since April when Trump made his tariff announcement.“Are these numbers proof that the tariffs are failing to produce the manufacturing jobs that President Trump promised?” Welker asked Bessent, to which he replied: “It’s been a couple of months. And with the manufacturing sector … we can’t snap our fingers and have factories built.”Bessent went on to add that he believes “by the fourth quarter, we’re going to see a substantial acceleration”.In addition to a decline in manufacturing employment since April, job openings and hires have fallen by 76,000 and 18,000, respectively, according to the Center for American Progress.According to economists, Trump’s tariffs are expected to cost American households $2,400 annually while wage growth among manufacturing workers remain stagnant under the tariffs.In August, manufacturing workers earned an hourly average of $35.50, marking only a 10-cent increase from July, the center reported. More

    • 163 Shares179 Views

      in US Politics

      Donald Trump maelstrom likely to leave US economic model unrecognisable | Heather Stewart

      by

      Donald Trump observed blithely last week that if his cherished tariff regime is struck down by the US supreme court, he may need to “unwind” some of the trade deals struck since he declared “liberation day” in April.It was a reminder, as if it were needed, that nothing about Trump’s economic policy is set in stone. Not only does the ageing president alter his demands on a whim, but it is unclear to what extent he has the power to make them stick.Yet even if the “reciprocal” tariffs first announced on 2 April are rolled back, they are only one aspect of a much wider assault on the last vestiges of what was once known as the “Washington consensus”.To name just a few of Trump’s recent interventions, he has taken a 10% government stake in the US tech company Intel, demanded 15% of the revenue of Nvidia’s chip sales to China and suggested the chief executive of Goldman Sachs should go.This at the same as taking a sledgehammer to Federal Reserve independence by lobbing insults at the chair, Jerome Powell, and trying to sack Lisa Cook from the central bank’s board.The head of the Bureau of Labor Statistics was removed by Trump after a run of poor jobs data; the chief of the National Labor Relations Board, Jennifer Abruzzo, was fired, too.The tech bros who back Trump loathe the NLRB for its role in upholding workers’ rights – mandating unionisation ballots at Amazon warehouses, for example.Trump’s approach is simultaneously systematic, in its determination to smash existing norms, and utterly chaotic. It is hard to categorise: corporate America is being unleashed – through the wilful destruction of environmental and labour standards, for example – and brought to heel.The leftwing senator Bernie Sanders welcomed Trump’s efforts to take a stake in Intel in exchange for government grants, for example – something he advocated in the Guardian back in 2022 – while some Republicans have condemned the approach as (heaven forbid) “socialism”.Partly because it coincides with the AI-fuelled stock boom that has propelled the value of tech companies into the stratosphere, the market response to this torching of the status quo has so far been modest.Whatever emerges from another three and a half years of this maelstrom is likely to be unrecognisable as the US economic model of recent decades.Its destruction has not happened overnight. The days were already long gone when the US, as the world’s undisputed economic superpower, could export free market, financialised capitalism worldwide.After the 2008 crash, the conditions for which were created in Wall Street boardrooms, any moral or practical claim the US had to offer an economic example to other nations evaporated.As the turmoil rippled out through the global economy, and the US government responded by bailing out large chunks of its financial sector, the lie of laissez-faire was laid bare.The crisis exposed the risks of turbocharged capitalism to countries outside the US, too – not least in the former Soviet bloc – that had been advised to adopt the model wholesale.As Ivan Krastev and Stephen Holmes put it in their compelling polemic The Light that Failed, “confidence that the political economy of the west was a model for the future of mankind had been linked to the belief that western elites knew what they were doing. Suddenly it was obvious that they didn’t.”skip past newsletter promotionafter newsletter promotionBack home in the US, meanwhile – as in the UK – the perception that banks had been bailed out, while the galaxy brains behind the crisis got off scot-free, sowed the seeds of a corrosive sense of injustice.Similarly, even before the crash, the idea that ever-expanding free trade brings economic benefits was bumping up against the fact that even if that is true in aggregate, for workers across the US rust belt, just as in the UK’s former manufacturing heartlands, it brought deindustrialisation and unemployment.This was fertile ground for Trump’s populist economic message. His first-term China tariffs were, with hindsight, a relatively modest stab at, as he saw it, tilting the playing field back towards the US.Joe Biden did not unwind those tariffs, which went with the grain of geopolitics, as any hopes that economic liberalisation would bring China into the fold of democracies were sadly dashed, and President Xi’s regime took on an increasingly authoritarian bent.Biden also took a muscular approach to the state’s role in the economy, with the billions in grants and loans distributed under the Inflation Reduction Act linked to national priorities of cutting carbon emissions and creating jobs.So the idea that before Trump arrived on the scene, free market US capitalism was motoring along unchallenged is misleading, but the pace at which he is crushing its remaining norms is extraordinary.There is ample ground for legitimate disagreement here: taxpayer stakes in strategic companies are much more common in European economies, for example. Trump may be laying down tracks that future US governments with different priorities could follow.Given that it is so unclear even what kind of economy he is groping towards, the overriding sense for the moment is of radical uncertainty. Friday’s weak US payrolls data, with the unemployment rate close to a four-year high, suggested companies may be responding with caution.Investors appear to have decided to avert their eyes for now, buoyed up by the prospect of Fed rate cuts, and the mega returns of the tech companies. However, with every chaotic week that passes, the risks must increase – and as the UK has learned in the wake of the Liz Truss debacle, economic credibility is quicker to lose than to rebuild. More

    • 150 Shares189 Views

      in US Politics

      US justice department reportedly opens criminal inquiry into Fed governor Lisa Cook

      by

      The US justice department has initiated a criminal investigation into mortgage fraud claims against Federal Reserve governor Lisa Cook, according to new reports, as a lawsuit she filed against Donald Trump over her firing makes its way through court.Lawyers with the justice department have issued subpoenas for the investigation, according to the Wall Street Journal.Last month, Trump moved to fire Cook over unconfirmed claims that she listed two properties as her primary residence. Bill Pulte, the director of the Federal Housing and Finance Agency and a close ally of Trump, alleged Cook had lied on bank documents and records to obtain a better mortgage rate.Cook, a voting member of the Fed board that sets interest rates, said she has “no intention of being bullied to step down” and that she would “take any questions about my financial history seriously”.In response to Trump’s bid to dismiss her, Cook filed a lawsuit against the president arguing that her removal was unconstitutional and threatened the independence of the Fed. Cook’s lawyers say the firing was “unprecedented and illegal” and that federal law requires showing “cause” for a Fed governor’s removal.“An unsubstantiated allegation about private mortgage applications submitted by Governor Cook prior to her Senate confirmation is not [cause],” her lawyers said in court documents.In court documents, lawyers for Cook suggested that a “clerical error” may be behind the discrepancies found in her mortgage records.Cook was appointed by Joe Biden in 2022 for a 14-year term on the board that was set to end in 2038. She is the first Black woman to be appointed to the board.US district court judge Jia Cobb heard arguments for the lawsuit last week and said she will expedite the case, which is ultimately expected to be taken up by the US supreme court.Trump’s attacks against Cook come against the backdrop of a long fight the White House has waged against the Fed, which has historically been treated as nonpartisan.skip past newsletter promotionafter newsletter promotionEarlier in the year, Trump threatened to fire the Fed chair, Jerome Powell, for not lowering interest rates, but ultimately walked back his threats after negative responses from investors. Trump also tried to accuse Powell of fraud over renovations at the Fed’s headquarters, which have cost more than anticipated.Abbe Lowell, Cook’s lawyer, told the Journal that “it takes nothing for this DoJ to undertake a new politicized investigation”. The justice department did not immediately respond to the Guardian’s request for comment.This is the third mortgage fraud inquiry the justice department has launched against Democrats and Democratic-appointed officials. Experts have called the pattern a type of “lawfare” as Trump and his allies use their roles to take down other officials.Last month, the US attorney general, Pam Bondi, appointed a special attorney to investigate similar mortgage fraud allegations the White House has levied against California senator Adam Schiff and the New York attorney general, Letitia James. More