A federal appeals court has found President Donald Trump’s sweeping tariffs to be unconstitutional, but has permitted them to stay in effect for now. The decision addresses the tension between executive power and trade policy, without immediately reversing the tariffs.
The U.S. economy recorded a 3.3% growth rate in the second quarter, marking a notable turnaround from the previous quarter’s slowdown. Government data attributes this rebound to easing disruptions from President Donald Trump’s trade policies, boosting both consumer spending and business investment.
Morgan Stanley has reversed its stance on the Federal Reserve’s monetary policy, now expecting two rate cuts—one in September and another in December. The bank also foresees further reductions in 2026, ultimately bringing the Fed’s target range to 2.75% to 3.00%.
US small business sentiment has improved in May for the first time this year, fueled by hopes for President Trump’s spending bill, even as uncertainty and tax concerns loom large.