Trump Tariffs, Fed Policy, and Harvard Lawsuit: Bloomberg News Now

Market Reactions to Trump's Trade Policies

• 📈 The S&P 500, NASDAQ, and Dow all saw gains, while the ten year Treasury yield stood at 4.43% and the two year yield at 3.94%.
• ⚖️ A federal appeals court has temporarily paused a ruling against President Trump's global tariffs, with the Justice Department arguing for an urgent hold to prevent irreparable harm to trade negotiations and national security.
• 🚗 Hyundai plans to increase the price of all its U.S. vehicles by 1% to offset the impact of tariffs, adding several hundred dollars per vehicle.
• 🤝 Taiwan is actively pursuing a trade deal with the U.S., aiming for terms that are mutually beneficial and at least as favorable as those offered to other countries.

Federal Reserve and Economic Outlook

• 🗣️ Chicago Fed President Austan Goolsbee suggested that resolving trade policy issues could help the U.S. economy return to its pre-tariff path, potentially allowing for interest rate reductions.
• ⚠️ Goolsbee described the current economic climate as a "stagflation area direction", characterized by higher prices and a cooling labor market.
• 🏛️ Fed Chair Jay Powell met with President Trump at the White House, with the Fed confirming that monetary policy expectations were not discussed and that future policy will remain data-dependent.
• 📉 The White House conveyed President Trump's belief that the Fed is making a mistake by not lowering interest rates, which he feels puts the U.S. at an economic disadvantage.

Harvard's Legal Battle Over International Students

• 🎓 A federal judge is considering Harvard University's lawsuit challenging the Trump administration's ban on enrolling international students.
• 🚫 The judge plans to issue a longer-term injunction in the case, expanding a temporary block on enforcement.
• 🌍 Harvard University held its graduation ceremonies, with President Alan Garber highlighting the school's international reach.

Revised Economic Data

• 📊 Revised GDP numbers for the first quarter showed a fall of 2/10 of a percent, which is slightly better than the initially forecast 3/10 of a percent.
• 🛒 Consumer spending was weaker than expected, showing only a 1.2% increase, down from the initial release of 1.8%.