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Saturday, October 4, 2025

Category: Economy
August 13, 2025
Economy
News

Trump Tariffs Push Company to Move Manufacturing From China and Mexico to the U.S.

PULSE POINTS

❓WHAT HAPPENED: GE Appliances announced a $3 billion investment to shift production from China and Mexico to U.S. facilities, modernize plants, and expand domestic operations.

👤WHO WAS INVOLVED: GE Appliances, CEO Kevin Nolan, Kentucky Governor Andy Beshear, and GE employees and partners.

📍WHEN & WHERE: Announced Wednesday; involving facilities in Kentucky, Georgia, Alabama, Tennessee, and South Carolina.

💬KEY QUOTE: “Our long-term strategy is about manufacturing close to our customers.” – Kevin Nolan, CEO of GE Appliances.

🎯IMPACT: Over 1,000 jobs will be added, with production moving to U.S. plants and significant contributions to the U.S. economy.

IN FULL

GE Appliances has announced a $3 billion investment to relocate production of refrigerators, gas ranges, and water heaters from China and Mexico to its U.S. facilities as part of a five-year plan. This initiative, which comes amid efforts by President Donald J. Trump to encourage the “reshoring” of manufacturing by imposing tariffs on foreign goods, will upgrade plants in Kentucky, Georgia, Alabama, Tennessee, and South Carolina, creating over 1,000 new jobs, and represents the second-largest investment in the company’s history.

CEO Kevin Nolan emphasized the focus on American manufacturing, stating, “Our long-term strategy is about manufacturing close to our customers.” The plan includes shifting gas range production from Mexico to Georgia and six refrigerator models from China to Alabama. Additionally, clothes washer production, announced in June, will move to Kentucky’s Appliance Park.

Kentucky Governor Andy Beshear (D) lauded the investment, saying, “GE Appliances has established Kentucky as America’s destination for advanced manufacturing and job creation,” highlighting the state’s skilled workforce and resources.

To support its American workforce expansion, GE Appliances is collaborating with universities, technical schools, and high schools. Company executive Bill Good noted, “America’s manufacturing renaissance will be built by people.”

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August 12, 2025
Economy

July CPI Comes in at 2.7%, Beating Forecasts Again.

PULSE POINTS

❓WHAT HAPPENED: The Consumer Price Index (CPI) in July rose 2.7 percent on an annual basis, slightly below economists’ forecast of 2.8 percent.

👤WHO WAS INVOLVED: The Bureau of Labor Statistics (BLS) and economists polled by FactSet.

📍WHEN & WHERE: The CPI data for July 2025 was released on August 12, 2025.

🎯IMPACT: Economists are closely monitoring the effects of inflation and tariffs on consumer prices, with some categories like apparel and home furnishings seeing slight increases.

IN FULL

The Consumer Price Index (CPI) for July 2023 rose by 2.7 percent on an annual basis, according to the Bureau of Labor Statistics (BLS). This figure came in slightly below the 2.8 percent increase forecasted by economists polled by FactSet. On a month-to-month basis, the CPI rose 0.2 percent, aligning with expectations.

Core inflation, which excludes the more volatile food and energy prices, increased by 3.1 percent over the past year, slightly above the 3 percent prediction by economists. Food prices matched the overall inflation rate, rising 2.7 percent annually. Notable increases were seen in items such as eggs (up 16.4 percent), roasted coffee (up 14.8 percent), and ground beef (up 11.5 percent). Gasoline prices, however, dropped by 9.5 percent compared to July 2022.

Economists are also observing the effects of tariffs on consumer prices. Goods from over 60 countries, including the European Union (EU), are now subject to new reciprocal tariffs implemented on August 7, 2025. Categories such as apparel and home furnishings have already shown signs of slight price increases due to these levies.

The CPI, which tracks changes in prices for a basket of goods and services commonly purchased by consumers, remains a key measure of inflation. Notably, the inflation rate has remained at or below three percent for much of the year despite Wall Street fears that tariffs would cause runaway inflation.

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August 11, 2025
Economy
World

Trump Strikes Deal With Nvidia, AMD: Share of China Chip Sales Will Go to U.S. Government.

PULSE POINTS

❓WHAT HAPPENED: Nvidia and AMD agreed to pay 15 percent of their China chip sales revenues to the U.S. government in exchange for export licenses.

👤WHO WAS INVOLVED: Nvidia, AMD, the Trump administration, and Nvidia CEO Jensen Huang.

📍WHEN & WHERE: The export licenses were granted last week, following negotiations earlier this year.

🎯IMPACT: This unprecedented revenue-sharing arrangement changes the nature of U.S. export policy but may have implications for national security.

IN FULL

Nvidia and AMD, major chipmakers, have reportedly agreed to allocate 15 percent of their China chip sale revenues to the U.S. government to secure export licenses from the Trump administration. The White House finalized an agreement with Nvidia and AMD, mandating a 15 percent revenue share from their chip sales in China to obtain export licenses for the Chinese market, issued last week.

Sources, including a U.S. official, indicate Nvidia will contribute 15 percent of its H20 chip sales revenue in China, and AMD will do the same for its MI308 chip sales. The administration’s use of these funds remains undecided.

This deal marks a first, as no U.S. company has previously agreed to share revenues for export licenses. It reflects President Trump’s approach of encouraging companies to invest domestically to boost U.S. jobs and revenue in exchange for tariff exemptions.

While in Beijing, Nvidia CEO Jensen Huang lauded Chinese artificial intelligence (AI) advancements at the International Supply Chain Expo, specifically praising DeepSeek’s AI research, saying, “It is incredibly well written. It is absolutely A-plus quality science and A-plus quality engineering.”

DeepSeek’s creators are believed to have achieved the AI’s current performance by acquiring more American chips than they were supposed to and misrepresenting its technical specifications.

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August 11, 2025
Economy
News

Bitcoin Is On Another Run, And Here’s The Target People Are Hoping For…

PULSE POINTS

❓WHAT HAPPENED: Bitcoin bulls made another attempt to break a key resistance level, potentially setting the stage for a rally to $140,000.

👤WHO WAS INVOLVED: Bitcoin traders, crypto derivatives exchange Deribit, and market strategist Marc Chandler.

📍WHEN & WHERE: Early Asian trading hours, with market data expected Tuesday.

🎯IMPACT: A successful hold above the resistance level could push Bitcoin toward $140,000, while failure may lead to a deeper correction.

IN FULL

Bitcoin traders are once again testing a crucial resistance level tied to the 1.618 percent Fibonacci extension, derived from the bear market lows of 2018 and 2022. This is the second time in recent weeks that bulls have attempted to breach this technical barrier. The first attempt failed last month, triggering a drop in Bitcoin’s price below $112,000. Currently, Bitcoin is trading around $122,000, having reached an intraday high of $122,171 during early Asian trading hours.

The Fibonacci extension is a key level used in technical analysis to project potential price targets or profit-taking levels. This level is often associated with the “golden ratio” and is closely watched by market participants for potential trend shifts. In the numerical series, as you progress further into the sequence, the ratio between consecutive numbers approaches 1.618, also known as the golden ratio or phi.

Should Bitcoin successfully maintain levels above this resistance, it may set the stage for a rally toward $140,000. That level is psychologically significant and aligns with a popular strike price on the crypto derivatives exchange Deribit, where more than $3 billion in notional open interest is currently concentrated. However, failure to hold above the current resistance could suggest weakening bullish momentum and potentially lead to a deeper correction.

Upcoming U.S. inflation data, expected on Tuesday, could also impact market sentiment. Economists are forecasting a 0.3 percent increase in the core Consumer Price Index (CPI) for July, following a 0.2 percent rise in June. While an upside surprise could stir short-term volatility, analysts believe it’s unlikely to alter the Federal Reserve’s leaning toward a rate cut in September.

Additionally, the softer-than-expected July jobs report has already shifted expectations toward a potential Fed rate cut, an outcome that could support risk assets, including cryptocurrencies. Most prediction markets are now projecting high odds of at least a 25-basis-point cut next month.

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August 8, 2025
Economy

Trump Admin Eyes IPOs for Mortgage Giants Fannie Mae, Freddie Mac: Report.

PULSE POINTS

❓WHAT HAPPENED: The Trump administration is reportedly planning to take Fannie Mae and Freddie Mac public later this year, potentially raising $30 billion.

👤WHO WAS INVOLVED: The Trump administration, Fannie Mae, Freddie Mac, and market analysts tracking the mortgage giants.

📍WHEN & WHERE: Expected later this year, with details surfacing on Friday, August 8, 2025.

💬KEY QUOTE: “This is a highly complicated potential transaction here… I’ve heard more years-long timelines with regards to bringing Fannie and Freddie public here.” – Analysts following the developments.

🎯IMPACT: Shares of Freddie Mac and Fannie Mae have risen, with Freddie up 3 percent and Fannie up 4.5 percent, amid speculation about the IPO timeline.

IN FULL

Speculation is mounting that the Trump administration is planning to take Fannie Mae and Freddie Mac public later this year. The plans could involve selling between 5 percent and 15 percent of their stock, valuing the mortgage giants at approximately $500 billion.

The two companies, which have been under government control since the 2008 financial crisis, might remain under government conservatorship, though this detail remains unclear. Analysts suggest the transaction could raise $30 billion, but questions remain about the feasibility of the timeline.

“This is a highly complicated potential transaction here,” said one analyst, noting that most observers have anticipated a years-long timeline for such a move. The possibility of an IPO later this year has raised skepticism among those who have tracked the government-sponsored enterprises for years.

Shares of Fannie Mae and Freddie Mac have reacted positively to the news. Freddie Mac’s stock rose 3 percent, while Fannie Mae saw a 4.5 percent increase. The market appears to be pricing in optimism about the potential IPO and the two companies’ future.

Further developments are expected as the Trump administration finalizes its plans. The timeline and structure of the IPO, including whether the companies will go public as one entity or two separate ones, remain key details to watch.

Image by ehpien.

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August 8, 2025
Economy
News

India Halts U.S. Arms Deals in Response to Trump Tariffs.

PULSE POINTS

❓WHAT HAPPENED: India has reportedly paused arms purchases from the United States and canceled a visit by Defense Minister Rajnath Singh to Washington following new tariffs imposed by President Donald J. Trump.

👤WHO WAS INVOLVED: President Donald Trump, Indian Prime Minister Narendra Modi, and the Indian Defense Ministry.

📍WHEN & WHERE: The tariffs were imposed in August 2025, with the arms purchase developments emerging shortly after, according to Reuters.

💬KEY QUOTE: “It is clarified that the various cases of procurement are being progressed as per the extant procedures,” said the Indian Defense Ministry, rejecting Reuters’ report.

🎯IMPACT: The situation could affect U.S.-India defense ties and trade negotiations amidst broader geopolitical shifts.

IN FULL

India has reportedly begun pushing back against the recent wave of tariffs imposed by President Donald J. Trump, with officials indicating that key defense agreements with the United States have been paused. According to three Indian government sources, New Delhi has temporarily shelved plans to acquire American military equipment and has also canceled a scheduled visit to Washington by Defense Minister Rajnath Singh.

These developments follow President Trump’s announcement earlier this month of sweeping trade measures targeting India. The White House introduced a blanket 25 percent tariff on Indian exports, along with a punitive 25 percent levy specifically aimed at Indian purchases of Russian crude oil. The combined 50 percent tariff burden is expected to take effect on August 26. Sources close to the matter suggest that the defense freeze could be lifted if the two nations reach a breakthrough in trade talks before the deadline.

In recent years, India has worked to diversify its defense partnerships, especially since the 2020 border clashes with China prompted a reassessment of its military readiness. While India has traditionally relied on Russian defense hardware, Washington made significant inroads under Trump’s previous term, securing over $24 billion in arms sales. However, this growing defense cooperation now faces uncertainty amid the escalating trade dispute.

Indian defense officials have reportedly halted negotiations on several major arms deals, including the Stryker armored vehicle, the Javelin anti-tank missile system, and the Boeing P-8I maritime patrol aircraft. The Stryker purchase had already encountered headwinds due to India’s ambition to develop local alternatives. Meanwhile, the P-8I deal was reportedly under review due to rising costs and evolving strategic priorities. Notably, Indian media had flagged delays in these procurement programs prior to the newest reports.

In response to the new reports, the Indian Defense Ministry strongly denied any freeze in defense talks, labeling the report as “false and fabricated.” In an official statement, the ministry asserted, “It is clarified that the various cases of procurement are being progressed as per the extant procedures,” and further emphasized that there is “no pause in talks related to buying U.S. arms.”

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August 8, 2025
Economy

DATA: Trump’s Economy Outperforms Biden.

PULSE POINTS

❓WHAT HAPPENED: Newly released Census Bureau data shows all income groups in America advanced more during President Donald Trump’s first term than during the Biden government.

👤WHO WAS INVOLVED: Stephen Moore, The Heritage Foundation, President Donald J. Trump, and the Census Bureau.

📍WHEN & WHERE: Data presented in the Oval Office on Thursday, August 7, 2025.

💬KEY QUOTE: “Every income group did better under Trump than Biden — by a wide margin.” – Economist Stephen Moore

🎯IMPACT: The data highlights significant income inequality under Biden and reinforces Trump’s economic achievements.

IN FULL

Economic data compiled by the U.S. Census Bureau have revealed that President Donald J. Trump‘s Make America Great Again agenda spurred economic advancement across all income groups during his first term in office, outpacing the results under the former Biden government. The data was presented publicly for the first time on Thusday in the Oval Office by Stephen Moore, a senior visiting fellow in economics at The Heritage Foundation.

The data examines Americans as three distinct income groups: lower income (bottom 25 percent of earners), middle income (middle 50 percent), and upper income (top 25 percent). “What I find fascinating about this, Mr. President, is every income group did better,” said Moore, adding: “The rich were the only group that did better under Biden, which is ironic because Biden keeps saying he was trying to get rid of income inequality. He made income inequality worse, not better. It was President Trump that reduced income inequality.”

Moore broke the data down in terms of dollars, as well. The lower third income bracket saw an estimated annual revenue gain of $4,000 during Trump’s first term. Similarly, the middle third of earners saw a $6,400 increase in income. Meanwhile, the wealthiest third saw $10,000 more per year by the end of Trump’s first term.

According to Moore, Bureau of Labor Statistics (BLS) data suggests similar economic effects are already underway in Trump’s second term. The BLS data shows that in the first five months of Trump’s second term, the average household’s income increased by an inflation-adjusted $1,174.

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August 7, 2025
Economy
World

Hey Jerome Powell! Even the Bank of England Just Cut Rates…

PULSE POINTS

❓WHAT HAPPENED: The Bank of England cut interest rates by 0.25 percentage points to four percent after a rare second round of voting by the Monetary Policy Committee. The move will likely reverberate across the Atlantic, where U.S. President Donald J. Trump continues pushing Federal Reserve Chairman Jerome Powell to cut rates.

👤WHO WAS INVOLVED: The Monetary Policy Committee, including Governor Andrew Bailey and external member Alan Taylor, who changed his vote during the second round.

📍WHEN & WHERE: The decision was announced in the UK on August 7, 2025.

💬KEY QUOTE: “We’ve cut interest rates today, but it was a finely balanced decision,” said BoE’s governor Andrew Bailey.

🎯IMPACT: The pound rose 0.5 percent against the dollar, and two-year gilt yields climbed six basis points to 3.88 percent after the announcement.

IN FULL

In a decision that required an unprecedented second round of voting, the Bank of England reduced its interest rate by 0.25 percentage points to four percent. The Monetary Policy Committee (MPC) initially failed to achieve a majority consensus, resulting in a second vote where Alan Taylor shifted his stance to support the reduction.

The final vote was close, with five members backing the cut and four preferring no change. The decision marks the first time in the panel’s 28-year history that two rounds of voting were necessary to reach a conclusion on rates.

Governor Andrew Bailey stated, “We’ve cut interest rates today, but it was a finely balanced decision.” He emphasized that future rate reductions would be made “gradually and carefully,” with the timing dependent on easing disinflationary pressures.

The announcement caused immediate market reactions, as the pound rose 0.5 percent against the dollar to $1.3428, and two-year gilt yields increased by six basis points to 3.88 percent. Traders have adjusted their expectations for future rate cuts accordingly. The decision comes amid a challenging economic environment of high inflation and weak growth. The Bank of England has warned that food prices will push inflation further above target in the near term, with a predicted peak of four percent in September.

Notably, the decision to slash rates comes as U.S. President Donald J. Trump continues his own campaign to push Federal Reserve Chairman Jerome Powell to cut interest rates as well. Powell is currently facing increased scrutiny over the ballooning Federal Reserve renovation costs, and a revolt among some Fed members who are backing Trump’s call for a rate cut.

While the Federal Reserve’s Federal Open Market Committee (FOMC) declined to reduce borrowing rates in July, they are anticipated to back a rate cut at its upcoming September meeting.

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August 7, 2025
Economy
World

India’s Modi Remains Defiant In Face of Trump’s 50% Tariff.

PULSE POINTS

❓WHAT HAPPENED: U.S. President Donald Trump announced a 50 percent tariff on Indian goods, prompting Indian Prime Minister Narendra Modi to defend the nation’s farmers and industries.

👤WHO WAS INVOLVED: Indian Prime Minister Narendra Modi, U.S. President Donald Trump, India’s foreign ministry, and industry leaders.

📍WHEN & WHERE: The announcement was made on Wednesday, with Modi responding on Thursday during an event in New Delhi.

💬KEY QUOTE: “India will never compromise on the well-being of its farmers, dairy [sector], and fishermen. And I know personally I will have to pay a heavy price for it.” — Narendra Modi

🎯IMPACT: The tariffs have strained U.S.-India relations, triggered domestic pressure on Modi, and raised concerns among Indian industries and investors.

IN FULL

Indian Prime Minister Narendra Modi has vowed to protect the interests of the nation’s farmers, fishermen, and dairy sector amid a significant tariff hike announced by U.S. President Donald J. Trump. Speaking at an event in New Delhi on Thursday, Modi declared, “India will never compromise on the well-being of its farmers, dairy [sector], and fishermen. And I know personally I will have to pay a heavy price for it.”

Trump’s decision to impose a 50 percent tariff on Indian goods, effective August 28, is reportedly aimed at penalizing India for its continued purchase of Russian oil. The tariff increase follows the collapse of trade talks between the two nations after five rounds of negotiations failed to resolve disagreements over India’s farm and dairy sectors and its oil imports from Russia.

India’s foreign ministry has criticized the tariff hike as “extremely unfortunate” and pledged to take “all necessary steps to protect its national interests.” Dammu Ravi, secretary of economic relations in India’s foreign ministry, described the move as lacking logic, stating, “This is a temporary aberration, a temporary problem that the country will face, but in course of time, we are confident that the world will find solutions.”

The tariffs have sparked domestic calls for a strong response, with both Modi’s supporters and opposition leaders urging him to act decisively. Congress party president Mallikarjun Kharge emphasized, “India’s national interest is supreme. Any nation that arbitrarily penalizes India for its time-tested policy of strategic autonomy… does not understand the steel frame India is made of.”

Indian industry leaders have expressed alarm over the economic impact of the tariffs. Sudhir Sekhri, chairman of the Apparel Export Promotion Council, warned, “There is no way the industry can absorb such a steep hike.”

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August 6, 2025
Lauren Gallagher
Economy
War

India’s Tariff Rate Will Double For Purchasing Russian Oil.

PULSE POINTS

❓WHAT HAPPENED: Tariffs on Indian exports to the United States will increase to 50 percent by the end of August if the country continues to purchase Russian oil.

👤WHO WAS INVOLVED: President Donald J. Trump, the Indian Foreign Ministry, and Russia.

📍WHEN & WHERE: United States and India, August 6, 2025.

💬KEY QUOTE: “They don’t care how many people in Ukraine are being killed by the Russian war Machine.” — President Donald J. Trump

🎯IMPACT: Trump is using economic pressure to push Russia to end its war in Ukraine by targeting its oil customers, like India. Other countries that import Russian oil may now face similar tariffs as well.

IN FULL

President Donald J. Trump announced on Wednesday that tariffs on India will be doubled to 50 percent in August, in retaliation for the country’s purchase of Russian oil. According to the White House, similar trade penalties will be imposed on other nations that continue to buy Russian energy as part of President Trump’s efforts to use trade policy to pressure the Kremlin to resolve the war in Ukraine.

The new Executive Order will ensure that India faces a 25 percent tariff starting on August 27 if the country continues to purchase oil from Russia. This is in addition to the 25 percent duty that Trump announced last week, which takes effect on Thursday.

President Trump criticized the Indian government on a social media post this week for purchasing ‘massive amounts’ of Russian oil and selling it on the open market. He stated, “They don’t care how many people in Ukraine are being killed by the Russian war Machine.” The order also directs administration officials to “determine whether any other country is directly or indirectly importing Russian Federation oil.”

India’s Foreign Ministry responded to Trump’s announcement late on Wednesday, stating its motives for importing Russian oil are due to the energy needed for its large population of 1.4 billion people. Indian officials signaled they did not intend to halt purchases of Russian oil. “It is therefore extremely unfortunate that the U.S. should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” the ministry’s statement said.

The National Pulse reported in late July that President Trump slammed India and Russia, declaring, “They can take their dead economies down together, for all I care.” He singled out India specifically for not having reached a bilateral trade agreement with the United States.

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