The US Supreme Court rules Donald Trump’s tariffs are illegal, but he won’t give up on them. US GDP is weaker than expected, but inflation for consumers is warmer than forecast. And Malaysian exports surge.
In our deep-dive interview, ANZ Group Chief Economist Richard Yetsenga analyses the impact of the Supreme Court’s tariff block, including on the US Government deficit and its borrowing.
5 things to know in 5 minutes:
The US Supreme Court ruled on Friday that the Trump Administration’s plethora of tariffs applied under the International Emergency Economic Powers Act of 1977, or IEEPA, were illegal. Trump almost immediately announced a 10% tariff on all imports, and then changed his mind on Saturday to a 15% tariff. ANZ Economist Bansi Madhavani says the legal tools being used to set the new tariffs are more complex and limited than the IEEPA ones.
US GDP for the December quarter was weaker than expected. Annualised growth in the quarter was 1.4%, down from the 4.4% rate seen in the fourth quarter. ANZ Head of G3 Economics Brian Martin says the US Government shutdown was the key factor, with Federal Government spending falling 16.6%.
US Personal Consumption Expenditure inflation data was hotter than expected, with the core PCE rising 0.4%, says Brian.
The US dollar starts the week firmer, says ANZ Head of FX Research Mahjabeen Zaman, starting with slightly hawkish minutes from the Fed.
Malaysia’s exports grew 19.6% in January from a year ago, which was the fastest growth in three years. ANZ Economist Krystal Tan says that growth number is boosted by re-exports.
Cheers,
Bernard.
PS: Catch you tomorrow with a look at why the New Zealand dollar has strengthened.
