Trump Secures NATO Defense Spending Agreement; Fed Rolls Back Bank Rule

NATO Summit Agreement

• 🤝 President Trump secured a historic agreement at the NATO summit, with leaders pledging to increase defense spending to 5% of GDP.
• 💰 This represents a significant increase from the current 2% core defense spending, with a portion allocated to supporting the industrial complex, cybersecurity, and border patrol.
• 🇪🇸 Trump expressed dissatisfaction with Spain, threatening trade repercussions for its low defense spending, which is currently at 2.1%.

Federal Reserve Policy Shift

• 🏦 The Federal Reserve voted to roll back the enhanced supplementary leverage ratio for large U.S. banks, reducing capital requirements.
• 📈 This change aims to ease restrictions on banks' ability to hold treasuries and act as intermediaries in the bond market.
• 📉 Fed Chair Jerome Powell indicated that officials are not rushing to lower interest rates due to a strong economy and uncertainty over tariffs' impact on inflation.

Other Key Developments

• 🇮🇷 President Trump stated the U.S. had obliterated Iranian nuclear facilities and did not see a need for a diplomatic agreement on Iran's nuclear program.
• 💉 The CDC's vaccine panel will add a subcommittee to review the childhood immunization schedule.
• 🛢️ Shell denied reports of active talks to acquire its rival BP, with analysts citing significant antitrust and integration hurdles for a potential takeover.