Good morning, Quartz readers!
Here’s what you need to know
Global sentiment swings. A Bank of America survey shows that investor sentiment is bounced to pre-liberation levels (but mainly overseas) Fear of a recession is declining.
Want a lawyer? Openai is reportedly considering whether to accuse Microsoft of the future of its partnership Hanged in balance.
Recruiting Openai’s robots. The Ministry of Defense has just awarded a one-year, $200 million defense contract “Border AI capabilities.”
Prime Cuts is coming soon. Amazon CEO Andy Jassy said in a company-wide email that AI will increase company efficiency and productivity – but it is likely Reduce its employees.
Factory reset. According to reports Our affordability challenges. ”
Tesla got the cy dog again. The company’s stock in Seiberke-style and Y-model production will be paused for a week at its Austin plant – a third pause In the past year.
Please, please
The Fed began its June meeting on Tuesday, and the interest rate is expected to remain exactly where it is: real estate. The probability of market betting on cuts is less than 1%.
The decision to keep interest rates (possible) has left the Fed completely inconsistent with President Donald Trump, who is typical and candid in monetary policy — known as Fed Chairman Jerome Powell as a “fool,” and other insults. But Powell was a Trump-appointed person and was not full of energy. Inflation may be lower than its peak, but it is still above the Fed’s 2% target. The Fed is worried that if rates are lowered too early, it could trigger another inflation spiral…like Americans are leaving their wallets.
Meanwhile, the Economic Sentiment Committee is absolutely mixed. GDP fell in the first quarter and could do it again in the second quarter, with slow growth in work and consumer confidence recovering from the April downturn – aka “Liberation Day” when Trump announced his wave of tariffs – but still shivered.
The president now wants to lower interest rates – stimulate growth, grow the market and relieve his economic pressure. But Powell is playing a long game. He was reluctant to repeat the Fed’s 2021 mistake when he underestimated the endurance of inflation and moved too slowly to correct the route. This time, he did the opposite: refuse to move too fast.
This is a delicate location.
If the rates remain for too long, Powell could harm the labor market. But if he is under political pressure, he may risk something bigger – the credibility of the Federal Reserve. When Trump last proposed the idea of firing Powell, the market fell 1,000 points. It seems that investors prefer a Federal Reserve that is more political than politics, even if it means sitting in their hands through some kind of turmoil. Catherine Baab of Quartz has more information on how the Fed stays firm while the market holds its breath.
Deduction, deduction, deduction
Senate Republicans have just abandoned their huge giants of Trump’s massive tax and spending (all 549 pages) to begin a negotiation phase that can determine the size, shape, and shelf life of the next generation of Republican tax policies.
The proposal aims to expand Trump’s 2017 tax cuts and significantly reduce them to safety net programs such as Medicaid and Clean Energy Tax Credits. The legislation tends toward Trump’s campaign season commitments (no taxes for tips! Overtime deductions! Greater breaks for seniors!) – although most of these privileges disappear in 2028, just like his term expires.
The Senate version includes stricter revenue phase-outs than the ones that are available for the house, and will represent execution details to the Treasury. Another key difference? Permanent. Although the House bill takes a short-term tax extension approach, Senate Republicans aims to permanently conduct several critical business breaks, including immediate payment of capital investments and full deductions for R&D.
In a process that runs counter to the efforts of the early Republican Party, the Senate program has not completely scorched the ground on the clean energy program of the Biden era. Instead, the plan is providing more time for solar, wind, nuclear and geothermal projects before pulling the plugs – while quietly eliminating the electric vehicle tax credit and adding protections to remove Chinese components from the clean energy supply chain.
Negotiations with the house will be tense. Mathematics are very tight. Rhetoric will become more relaxed. If nothing else, this guarantees one thing: the next few weeks on Capitol Hill will be loud, long and bad, with tax metaphors. Joseph Zeballos-Roig of Quartz has more information on how the tax bill becomes a policy Rorschach.
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A wellness enthusiast and certified nutrition advisor, Meera covers everything from healthy living tips to medical breakthroughs. Her articles aim to inform and inspire readers to live better every day.
