Reuters World News India's strikes, Russian explosives, the Fed and tax cuts
May 8, 2025
Tensions rise as India intensifies strikes in Pakistan, marking a significant escalation. Meanwhile, Russia is ramping up its explosives production with a new facility aimed at bolstering its military efforts. In the U.S., the Federal Reserve is navigating tricky economic waters, balancing inflation and unemployment risks. On the political front, Republicans face hurdles in financing Trump's tax cuts while debating massive spending cuts, all amidst concerns about economic growth influenced by recent policies.
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Russia’s Massive Explosives Build-Up
- Russia’s new explosives facility in Siberia will produce 6,000 tons of RDX annually, enough for 1 million artillery shells.
- This boosts Russia’s ability to meet high battlefield munitions demand amid shortages and reliance on North Korean imports.
Fed Waits on Trade Policy Impact
- The US Federal Reserve is holding rates steady to observe economic impacts amid tariff uncertainties.
- Their future actions depend on trade policies under Trump affecting inflation and unemployment risks.
Challenges in Funding Tax Cuts
- House Republicans struggle to finance permanent extension of Trump’s 2017 tax cuts.
- Without $2 trillion in spending cuts, tax cut scope may shrink by $500 billion, affecting priorities and increasing debt.