Supreme Court Blocks Trump Tariffs
Legal ruling shakes markets while inflation data heats up.
TL;DR:
- ⚖️ Supreme Court strikes down global tariffs
- 📉 US GDP growth slows to 1.4%
- 🔥 PCE inflation rises more than expected
- 🆕 Trump imposes new 10% tariff
Supreme Court Strikes Down Global Tariffs
The Supreme Court ruled against former President Trump's sweeping global tariffs, citing overreach of executive authority. This decision initially sparked volatility as traders reassessed the trade landscape, though the immediate implementation of alternative measures kept uncertainty high. Source
US GDP Growth Slows to 1.4%
Fourth-quarter GDP data revealed a slowdown to 1.4% growth, signaling cooling economic momentum. This deceleration complicates the Federal Reserve's path forward, as they balance slowing growth against persistent inflationary pressures. Source
PCE Inflation Exceeds Expectations
The Personal Consumption Expenditures (PCE) price index rose 0.4%, coming in hotter than market forecasts. As the Fed's preferred inflation gauge, this uptick suggests that price pressures remain sticky, potentially delaying any dovish pivots in monetary policy. Source
Trump Imposes New 10% Tariff
Following the Supreme Court ruling, Trump utilized Section 122 to impose a new 10% tariff. This rapid countermove indicates that trade tensions are far from resolved, keeping supply chain concerns front and center for global markets. Source