Bloomberg Daybreak: US Edition Tax Bill Hits Republican Resistance; Trump's Tariff Threats Continue
Jul 2, 2025
Political tensions rise as Trump's multitrillion-dollar tax bill faces significant pushback from both moderate and ultraconservative Republicans. Tariff threats against Japan create uncertainty in global markets, sparking fears of economic fallout. Meanwhile, Wall Street's largest banks celebrated their dividend boosts after easing stress tests, reflecting a complex landscape of economic recovery. The interplay of domestic political dissent and international trade negotiations paints a vivid picture of challenges ahead.
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Divisions Split GOP on Tax Bill
- President Trump's tax and spending cut bill faces deep divisions in the House between moderates and ultra-conservatives.
- Medicaid cuts and deficit concerns are the main obstacles limiting the bill's passage.
Tariffs Delay Fed Rate Cuts
- Fed Chair Jay Powell says tariffs have raised inflation forecasts and prevented earlier rate cuts.
- The Fed focuses on its dual mandate despite political pressures related to tariffs.
Banks Boost Dividends Post-Stress Test
- Major Wall Street banks raised dividends after passing eased Federal Reserve stress tests.
- The Fed confirmed banks can withstand severe recessions, boosting shareholder payouts.