Economy

Fed vs inflation
Economists: Trump's policies and attacks on the Fed threaten US as a safe haven

Donald Trump's debt-financed tax cuts and attacks on the Federal Reserve's independence risk reducing the US's role as a safe haven for investors, economists predict in a Financial Times survey.

Around 90 percent of those surveyed were somewhat or very concerned about the status of dollar assets over the next five to ten years.

Saroj Bhattarai at the University of Texas sees gold and the Swiss franc as the new safe havens.

- The US looks like an emerging market, he tells the FT.

"Astounding fiscal excesses" combined with the White House's desire to take over the central bank are very worrying, says Robert Barbera at Johns Hopkins University.

US Elections Trump's Budget
US Debt Mountain Expected to Grow Significantly with Senate Budget

The Senate version of President Trump's tax and spending package is expected to increase the US budget deficit by nearly $3.3 trillion over the next decade, according to the Congressional Budget Office (CBO).

The proposal involves tax cuts of $4.5 trillion and spending cuts of $1.2 trillion compared to current law, writes Bloomberg.

An alternative calculation requested by Republicans shows the cost will be $507.6 billion higher than if the current tax policy is extended. But Democrats and some economists have criticized the calculation, which is considered to allow Republicans to circumvent rules and threaten financial development.

The Senate proposal is expected to increase the deficit by about $500 billion more than the House version, writes the news agency. 

Tariff crisis Trump's tariff policy
Trump has no plans to extend the tariff break

President Donald Trump does not expect to have to extend the tariff break after the July 9 deadline, he tells Fox News.

The president says that a letter will soon be sent to all countries that do not have an agreement with the message:

- Congratulations, we will let you trade in the United States. You will pay 25 percent tariffs, or 35 percent or 50 percent or 10 percent.

At the same time, it would be "no big deal" if the United States instead extends the break, the president says.

On Friday, Treasury Secretary Scott Bessent flagged that many agreements will not be finalized until around Labor Day on September 1, Bloomberg notes. 

The future of Open AI
Report: Meta snubs Open AI for four AI analysts

Tech giant Meta is picking four AI analysts for the company's "superintelligence lab," writes Bloomberg, citing sources.

The information comes after Open AI founder Sam Altman claimed earlier this week that Meta had tried to attract AI talent from the company through hiring bonuses in the 100 million range.

In an internal meeting at Meta, Chief Technology Officer Andrew Bosworth reportedly responded to the information by saying that Meta is offering salaries to AI talent in the millions, but that these are not lump sums at that level, writes The Verge. 

Middle East crisis  Food prices
Fertilizer giant: The unrest could cause food prices to skyrocket

Increased tensions in the Middle East could trigger a new shock to food prices. This is what Svein Tore Holsether, the CEO of Norwegian fertilizer giant Yara, warns, writes the FT.

According to Holsether, both fertilizer companies and customers are now closely monitoring the risks surrounding the Strait of Hormuz, through which 40 percent of the world's urea and 20 percent of liquefied natural gas passes.

Holsether believes that "the food system is fragile" and that fertilizer markets have been "extremely volatile" in the past two weeks. He points to the recent production stoppage in Israeli gas fields, which led to disruptions in fertilizer production in Egypt.

- It shows how everything is connected, he says.