Politics

Political news that affects economic policies and markets.

Politics
US BLS watchdog opens internal investigation
The internal watchdog at the United State's Labor Department has launched an investigation over “challenges” the Bureau of Labor Statistics (BLS) faces in getting data. The Labor Department's Office of Inspector General said in a letter to acting commissioner, William Wiatrowsky, that the review was launched specifically in response to weak job growth numbers in a monthly report. This follows President Donald Trump's firing of the head of BLS, Erika McEntarfer, in early August, when he claimed that the weaker-than-expected numbers were being falsified to make him look bad. Trump then installed EJ Antoni, an economist at a conservative think tank, who has previously called the numbers gathered by the BLS "phoney baloney". The latest Labor Department report, published on Tuesday, showed that the U.S. economy had added 911,000 fewer jobs than initial estimates in the 12 months to March this year. The revisions were the largest on record in over 20 years.
Politics
Trump tells EU to tariff India, China over Russian oil
United States President Donald Trump has asked the European Union to add tariffs of up to 100% on China and India due to their purchases of Russian oil. The U.S. doubled India’s tariff rate from 25% to 50% in August, saying its Russian oil purchases were indirectly funding Russia’s invasion of Ukraine. Trump told EU officials on Tuesday to introduce these tariffs in a discussion about adding economic pressure on Russia to end its war. “We need more pressure on Russia to come to the negotiating table. We need more sanctions,” said European Commission President Ursula von der Leyen in her Wednesday State of the Union address. The EU is preparing a new sanctions package, she said. The EU is also projected to buy around 13% of its gas from Russia in 2025, though this has fallen from 45% before Russia’s invasion began. “We are particularly looking at phasing out Russian fossil fuels faster,” said von der Leyen. The U.S. said it would match new tariffs imposed by the EU on China and India, the Financial Times reported. India and China are the largest buyers of Russian oil, with India importing 1.73 million barrels per day from Russia in the first seven months of 2025. India has said it does not plan to end its Russian oil
Politics
Judge blocks Trump from firing Lisa Cook
A federal court has blocked United States President Donald Trump from firing Federal Reserve governor Lisa Cook as the lawsuit challenging her removal continues. This acts as a blow to the Trump administration's efforts to assert more power over the Federal Reserve in a bid to get lower interest rates. U.S. District Court Judge Jia Cobb granted Cook the preliminary injunction barring her termination, saying that "Cook has made a strong showing that her purported removal was done in violation of the Federal Reserve Act’s ‘for cause’ provision”. “The public interest in Federal Reserve independence weighs in favour of Cook’s reinstatement,” Cobb said. ″‘For cause’ thus does not contemplate removing an individual purely for conduct that occurred before they began in office.” Cobb said this in reference to the allegations of mortgage fraud that one of Trump’s allies and the leader of the U.S. Federal Finance Agency, Bill Pulte, made against Cook. Pulte said Cook claimed two different properties as primary residences when obtaining mortgages in 2021. Cook denies any wrongdoing. Multiple federal agencies were provided the details of her mortgages when she was appointed by former President Joe Biden in 2022 as the first
Politics
Nepal's Prime Minister KP Sharma Oli forced to step down
Nepal’s Prime Minister, KP Sharma Oli, has resigned following the country’s worst unrest in decades due to public anger over the deaths of 19 anti-corruption protestors in a clash with police earlier this week. Following the deaths and more than 100 injuries, tens of thousands of protestors remained on the ground, blocking roads and setting fires to parliament and other government buildings. “In view of the adverse situation in the country, I have resigned effective today to facilitate the solution to the problem and to help resolve it politically in accordance with the constitution,” Oli wrote in his letter to President Ramchandra Paudel on Tuesday after his administration was blamed for the bloodiest outbreaks of unrest in a decade. The protests mainly consisted of young people over widespread allegations of corruption and a social media ban, which has since been withdrawn. The social media ban, which triggered the demonstrations, would have seen 26 social media sites banned, including WhatsApp, Instagram and Facebook, for failing to meet a deadline to register with Nepal’s Ministry of Communication and Information Technology. During the protests, Nepal's Minister for Communication Prithvi Subba told the BBC that
Politics
New French PM appointed, third in one year
French President Emmanuel Macron has appointed a new prime minister, the third in a year. Stepping into the role is Sébastien Lecornu, a close ally of the French president, taking over from François Bayrou, who only took office last December. He was pushed from the job after a vote of no confidence earlier this week, which came in response to his proposal to heavily cut public spending to reduce the national deficit. The proposal was controversial and condemned from all sides of France's parliament. Bayrou's loss comes less than a year after the previous government of Michel Barnier fell apart, also over budget disagreements. Now, Lecournu has become the latest person to be appointed as PM, a 39-year-old member of Macron's central party. "The President of the Republic has entrusted me with the task of building a Government with a clear direction: the defense of our independence and our power, the service of the French people, and political and institutional stability for the unity of the country," Lecornu wrote on X. “I salute François Bayrou for the courage he demonstrated in defending his convictions to the very end.”

Politics
Norway's centre-left Labor Party secures election win
Norway’s centre-left Labor Party, led by Prime Minister Jonas Gahr Stoere, claimed the most votes in the country’s general election this week. Not long before the polls closed, the Labor Party was projected to win with 89 seats, with the centre-right taking 80 seats, in an election where a minimum of 85 seats is needed to form a majority. Once 99% of the votes were counted, Stoere’s party and four smaller left-leaning parties 87 seats. “This is a signal to outside Norway that social democracy can also win despite a right-wing wave," Stoere said in celebration. Stoere is set to remain heavily reliant on his smaller allies to pass major legislation, including fiscal budgets. In order to gain their support, he will likely face tough decisions regarding tax hikes for the wealthy, future oil exploration and divestments by Norway’s US$2 trillion (A$3.055 trillion) sovereign wealth fund from Israeli companies. Despite the left’s win, results showed a shift further right for conservative voters, with the populist, anti-immigration Progress Party of Sylvi Listhaug making its best showing in an election. The right-wing party secures 48 seats of the 169-seat parliament, more than double what it had four years ago, with p
Politics
US faces US$1tn refund risk if tariffs overturned
The United States could refund up to US$1 trillion (A$1.528 trillion) if the Supreme Court rules many of its tariffs were illegally imposed, according to Treasury Secretary Scott Bessent. The Treasury may issue from $750 billion to $1 trillion in rebates, Bessent reportedly wrote in a Supreme Court filing. The U.S. collected over $72 billion in revenue from country-specific tariffs between April and August. Bessent had previously said the U.S. could refund about half of the tariff revenue collected so far if the Supreme Court struck down the policy. “We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” he told NBC News over the weekend. The figure Bessent estimated would also include country-specific tariff revenue that the U.S. government expects to collect by June 2026. The U.S. Federal Circuit Court of Appeals ruled at the end of August that many of U.S. President Donald Trump’s tariffs were illegal. Under the decision, current tariffs may remain in place until 14 October. While Trump has claimed the International Emergency Economic Powers Act (IEEPA) allows him to impose country-specific tariffs to address trade deficits, the court said IEEPA does not give the pres
Politics
Supreme Court ends curbs on immigration raids
The Supreme Court has lifted restrictions that stopped the Trump administration from carrying out immigration related raids in the Los Angeles area. The ruling is a win for the Trump administration, which vowed to conduct record-level deportations. The justices of the conservative majority court were divided 6-3. The overturning now allows agents to stop suspects based solely on their race, language or job, while a legal challenge to the recent immigration sweeps in LA works its way through the courts. Conservative Justice Brett Kavanaugh wrote that the decision of the lower courts' restraining order went too far in restricting how ICE agents could carry out stops or question suspected unlawful immigrants. "To be clear, apparent ethnicity alone cannot furnish reasonable suspicion," he wrote. "However, it can be a 'relevant factor' when considered along with other salient factors." The three Liberal Supreme Court justices issued a strong dissent as Justice Sonia Sotomayor wrote that "countless people in the Los Angeles area have been grabbed, thrown to the ground, and handcuffed simply because of their looks, their accents, and the fact they make a living by doing manual labour". "Today, the Court needlessly su
Politics
French PM ousted over public budget cuts proposal
France’s parliament has voted to remove Prime Minister François Bayrou and his minority government over its bid to cut around EU€44 billion (A$78.63 billion) from the country’s budget. The no-confidence vote follows Bayrou’s proposal to slash public spending, which includes reducing public sector hiring and ending two public holidays. French President Emmanuel Macron plans to appoint a new Prime Minister “in the coming days”, his office said. “You have the power to bring down the government, but you do not have the power to erase reality,” Bayrou said before the no-confidence vote. “Reality will remain relentless: expenses will continue to rise, and the burden of debt, already unbearable, will grow heavier and more costly.” Bayrou took office in December, and is the sixth Prime Minister since Macron became President in 2017. He survived two no-confidence motions in February after passing a budget without a parliamentary vote, and another in July amid pension reform negotiations. He had called for a confidence vote to shore up support for his budget proposal, and lost with 364 votes against his government and 194 in favour. France’s budget deficit was 5.8% of its gross domestic product in 2024. Public debt was €3.