Politics

Political news that affects economic policies and markets.

Politics
Time for hardball with China over, US wants softer deal
Having admitted that the 145% tariff rate imposed on China is unsustainably high, the Trump administration has conceded that it’s time to stop playing hard ball and rebalance. Share markets in the United States rallied overnight in response to the revelation by Treasury Secretary Scott Bessent that it’s now time for a sweeping agreement that winds down the trade war with China. “If they want to rebalance, let’s do it together,” Bessent said during an appearance at the Institute of International Finance (IIF) in Washington, D.C. Unconfirmed reports by senior White House officials suggest levies are expected to finally settle somewhere between 50% - 65%, which would still be relatively high.Restore consumption-led growthBessent said the U.S. now wants China to provide a schedule and achieve measurable progress for a foundational shift in its economy toward consumption-led growth. These proposed changes are expected to spur demand for U.S. exports and narrow the bilateral trade gap, which Washington has been urging Beijing to close since 2006. Bessent cited recent data that shows the Chinese economy tilting even further away from consumption toward manufacturing. “China’s economic system, with growth driven by man
Politics
Trump says he has no plans to fire Fed Chair Powell
United States President Donald Trump has said that he has “no intention” of firing Federal Reserve Chair Jerome Powell, despite days of speculation around the independence of the central bank. Speculation surrounding Powell’s firing started after Trump called him a “major loser” for not lowering interest rates, but Trump has since dispelled these rumours at a recent press conference. “I have no intention of firing him,” Trump told reporters in the Oval Office on Tuesday. “I would like to see him be a little more active in terms of his idea to lower interest rates.” In his earlier statements about Powell, Trump nicknamed him “too late”, arguing that the Fed should cut interest rates immediately. This attack caused a frenzy among central bank investors, with the price of gold hitting record highs. The central bank increased interest rates during the pandemic to cool rising prices, then initiated rate cuts as inflation came down and the U.S job market remained healthy. They have held off further rate cuts as inflation rose above the Fed’s target of 2% a year. Powell also warned that Trump’s tariffs on most of the U.S.’s trading partners could worsen inflation. “The comments sparked fresh criticism from Trump,
Politics
Ex-senator's wife found guilty in gold bar, cash bribery
The wife of a former New Jersey senator has been found guilty on all counts for a bribery scheme involving cash, gold bars, political favours and more. Nadine Menendez was found guilty on all 15 counts by a New York jury, with charges including bribery and obstruction of justice, for aiding her husband, ex-Senator Robert Menendez, who received the gifts in exchange for political favours. Her sentencing date has been set for June 12 after being originally indicted with her husband in September 2023, but her trial was delayed due to breast cancer treatments. Her husband was convicted in July 2024 and sentenced to 11 years in prison. Fred Daibes, a New Jersey property developer, and Wael Hana, operator of a halal certification company, were also both charged and convicted for their roles in the scheme. Additionally, insurance broker Jose Uribe pleaded guilty in March of last year to charges related to the scheme. During the trial, prosecutors argued that Menendez was central to her husband's bribery, telling the jury it was her who often accepted the cash and other gifts on his behalf. In a statement, the Southern District of New York's attorney's office described the couple were "partners in crime" who participated
Politics
Donald Trump defends Pete Hegseth's Signal leak
United States President Donald Trump has come to the defence of Pete Hegseth after he found himself in another Signal group chat leak. This time round, the Defence Secretary shared details of the military attack in a chat, including his wife, brother, and personal lawyer, according to an anonymous official. At an Easter Monday press conference, Trump backed Hegseth, saying he’s been doing a great job and said that he has “great confidence” in him. "Everybody's happy with him,” Trump said. "Are you bringing up Signal again? I thought they gave that up two weeks ago. It's the same old stuff from the media," he said. "Try finding something new," he said. Hegseth also denied his wrongdoing at a conference on Easter Monday. "This is what the media does, they take anonymous sources from disgruntled former employees, and then they try to slash and burn people, ruin their reputation. It's not going to work with me," he said. The new Signal leak comes just a month after the editor and chief of The Atlantic was added to a Signal group chat where U.S. cabinet officials, including Hegseth discussed plans to attack Houthi rebels. White House press secretary Karoline Leavitt took to X to deny that there has been an effor
Politics
Dutton, Albanese square-off in ABC Leader's Debate
Australia's Prime Minister Anthony Albanese and Opposition Leader Peter Dutton clashed overnight on major issues like cost of living, energy policy, and international relations. The second leaders' debate between Albanese and Dutton took place on Wednesday night, at ABC's Parramatta studios. Moderated by David Speers, the debate was a key moment in the federal election campaign, with just over two weeks until Australians head to the polls. The Sydney Morning Herald's chief political correspondent David Crowe reported that there was "a clear winner". According to national affairs editor James Massola, Albanese won, "though not by much", while Jacqueline Maley noted that Albanese won "by a whisker". According to The Guardian Australia's Josh Butler, "neither Albanese nor Dutton smashed the ABC debate." Ronald Mizen in The Australian Financial Review said: "While the Coalition’s social media accounts were again quick to declare Dutton the winner of the debate, the number of stumbles he had clearly meant that was not the case. In the second debate, Albanese had the edge." One of the most heated topics was energy policy. Albanese emphasised renewable energy as the cheapest and most sustainable option, while Dutton critic

Politics
Hegseth's leading advisor put on administrative leave
A leading advisor to United States Defence Secretary, Pete Hegseth, has been escorted from the Pentagon after being identified during an investigation into leaks at the Department of Defence. Dan Caldwell was put on administrative leave for “an unauthorised disclosure”, a U.S. official told Reuters. "The investigation remains ongoing," the official said without providing details about the nature of the alleged disclosure. In a memo signed by Hegseth’s chief of staff, Joe Kasper, he requested an investigation into the “unauthorised disclosures of national security information”, even calling for assistance from the Director of Defence Intelligence. Kasper even said polygraphs may be used in the investigation. “I expect to be informed immediately if this effort results in information identifying a party responsible for an unauthorised disclosure, and that such information will be referred to the appropriate criminal law enforcement entity for criminal prosecution,” he said. This comes after Hegseth named Caldwell as the best staff point contact for the National Security Council in the leaked Signal Chat published by the Atlantic last month. Putting Caldwell on administrative leave is reportedly different to the T
Politics
Singapore election set for 3 May amid economic pressures
Singapore has dissolved its parliament and called an election, as the country’s economy struggles with cost of living pressures and the United States’ tariffs. The election will be held on 3 May, with the campaign officially beginning on 23 April. The country’s 97 parliamentary seats will be up for election, and voting is compulsory for Singaporean citizens. “We are witnessing profound changes in the world. It is becoming more uncertain, unsettled and even unstable. The global conditions that enabled Singapore’s success over the past decades may no longer hold,” said Singaporean Prime Minister Lawrence Wong. "That is why I have called this General Election. At this critical juncture, Singaporeans should decide on the team to lead our nation, and to chart our way forward together.” While Wong’s conservative People’s Action Party (PAP) has governed Singapore since its independence, the opposition Workers’ Party saw its representation increase to a record 10 seats in 2020’s elections. The PAP won 83 seats that year, with its popular vote falling by 9% to 61%. This will also be Wong’s first election as the leader of the PAP, with previous Prime Minister Lee Hsien Loong stepping down in May 2024. The election will featur
Politics
El Salvador's Bukele declines to return US resident
El Salvador’s President Nayib Bukele said he would not return a wrongly deported American resident to the United States, in a meeting with U.S. President Donald Trump dominated by immigration policy today. Since Trump took office, hundreds of Latin American immigrants in the U.S. have been sent to an El Salvadoran maximum security prison known as the Terrorism Confinement Center, or CECOT. Kilmar Abrego Garcia, a legal resident in Maryland originally from El Salvador, was taken to CECOT last month, with the administration alleging he was part of the gang MS-13. “The question is preposterous. How can I smuggle a terrorist into the United States?” said Bukele during a press conference with Trump. “I don’t have the power to return him to the United States.” The Trump administration has offered no evidence that Abrego Garcia was affiliated with gang activity, according to Abrego Garcia’s attorneys, and he has not been charged with any gang-related crimes. He had previously received a court order preventing his deportation to El Salvador, saying he would have been persecuted by gangs in the country. While the U.S. Justice Department admitted last month that Abrego Garcia “was removed to El Salvador because of an administrat
Politics
South Korean ex-president Yoon's criminal trial begins
Impeached South Korean President Yoon Suk Yeol’s criminal trial began today, after being removed from office due to his December martial law declaration. Yoon has been charged with leading an insurrection. He was impeached shortly after instating martial law, and was removed by the country’s Constitutional Court on 4 April. “Martial law is not a coup d’etat,” Yoon said in this morning's hearing. “This was a peaceful ‘message martial law’ to the nation.” The hearing began at the Seoul Central District Court at 10 am local time. Photos and video will not be permitted during the hearing today, the court said, and Yoon entered through an underground parking area to avoid public view. “The decision to allow Yoon, who is accused as the ringleader of an insurrection, to use the underground parking lot for court entry lacks justification and legitimacy,” said opposition Democratic Party spokesperson Lee Geon-tae. If Yoon is convicted, he may face a life sentence or the death penalty. An initial verdict is expected around August. The first preliminary hearing in Yoon’s criminal trial took place in February, after being detained in January. He was released from detention in March. Yoon declared martial law in December a