USDA to reopen Texas facility in renewed fight against screwworm... USDA Secretary Brooke Rollins is set to announce the reopening of the Moore Air Base facility near Edinburg, Texas, as part of an intensified campaign to eradicate the New World screwworm (NWS). The move comes amid mounting concerns over recent outbreaks in Mexico and growing risks to U.S. livestock and wildlife.
USDA recently allocated $21 million to retrofit a fruit fly facility in Mexico for additional NWS control. However, the pressure for a domestic solution has intensified.
Nearly 80 lawmakers led by House Ag Committee Chair Glenn “GT” Thompson (R-Pa.) sent a bipartisan letter on Tuesday to Rollins urging immediate action and promising congressional support for the significant funding required.
SCOTUS asked to rule on legality of Trump’s ‘Liberation Day’ tariffs... Small businesses formally asked the Supreme Court to determine whether President Donald Trump’s “Liberation Day” tariffs are lawful — a move that could yield a final ruling by the end of the year and represents the first time these high-profile tariffs have reached the nation’s highest court, Forbes reports.
Two companies, Learning Resources Inc. and hand2mind Inc., filed a petition on Tuesday urging the Supreme Court to bypass the traditional appeals process and directly address the legality of Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA), which served as the legal basis for the measures. A federal district judge previously ruled in the businesses’ favor, finding the tariffs violated IEEPA, but that decision is currently on hold while an appeals court reviews the case.
The plaintiffs argue the Supreme Court must intervene swiftly to resolve the “crippling uncertainty” the tariffs have caused for businesses across the country, asking for oral arguments as early as this October. The case is one of two legal challenges to the “Liberation Day” tariffs that have resulted in rulings against the Trump administration, though both are paused pending appeal.
The Supreme Court has yet to announce whether it will take up the case or set a timeline. If the justices agree to fast-track the petition, the dispute could be argued and decided within months —potentially clarifying the future of Trump’s sweeping tariff authority before the end of 2025. Alternatively, the case could be delayed, with a final decision possible as late as June 2026.
Trump expands Section 232 tariffs to consumer goods, escalating trade tensions... The Trump administration is moving swiftly to broaden Section 232 tariffs — originally imposed on steel, aluminum, and autos — to cover a far wider range of consumer goods, intensifying trade tensions and raising the stakes for importers and global supply chains.
The Commerce Department is expected within weeks to announce the results of seven new national security investigations into sectors such as semiconductors, pharmaceuticals, and critical minerals. Trump has already expanded the steel and aluminum tariffs to include products like dishwashers, dryers, and washing machines, with new duties of up to 50%. The administration claims these goods are “vital to national security.”
FOMC preview: Essaye says market braces for Fed’s ‘wait-and-see’ stance... Ever since March, the Federal Reserve has stuck to a remarkably consistent message: It’s in “wait-and-see” mode on rate cuts until officials have a clearer read on how tariffs will affect growth and inflation—a position that isn’t expected to change at tomorrow’s meeting, says Tom Essaye of the Sevens Report. What to Expect from the FOMC, according to Essaye:
- No change to interest rates.
- No change to forward guidance (the Fed’s signaling language about when cuts might come).
- Little change in the statement, aside from perhaps a modest downgrade to the growth outlook.
- Chair Jerome Powell is expected to keep a steady “wait-and-see” message in his press conference and is unlikely to hint at the timing of any cuts.
The main variable for markets is the updated “dot plot” — Fed officials’ projections for interest rate cuts this year and beyond. The only number that matters to Wall Street is the forecast for 2025, Essaye notes. “Markets still expect two rate cuts in 2025 (one in the fall, one in December), although it’s not a high-conviction opinion,” Essaye explains. “As a result, I’d expect stocks to rally slightly… but this shouldn’t cause too much of a market reaction as it’s fully priced into stocks at these levels.”
Hawkish if: The median for 2025 shows just one rate cut. According to Essaye, this would be “a negative surprise,” potentially triggering “a solid decline (S&P 500 down close to 1%).” Cyclical sectors would lead the drop, yields would rise, and the dollar could see a sharp rally. “Commodities should be one of the biggest losers with gold likely dropping more than 1% on the stronger dollar.”
Dovish if: Powell softens his tone and hints the Fed is ready to cut rates soon. “There’s virtually no chance the median dots show three rate cuts in 2025,” Essaye says. But a dovish press conference could trigger “a solid rally… led by cyclical sectors… The 10-year yield should drop moderately… the Dollar Index should drop solidly, while commodities and gold should be the biggest winners.” Other analysts note that a reason for no change is that the tariff situation really has not changed since the May FOMC meeting… the data has not been either too strong or too soft, nor has inflation gotten too high or has deflation really kicked in. The Fed likely wants to see the tariff impacts which will become apparent July 9 forward when some higher tariffs will kick in, if not paused again.
Bottom Line: As Essaye puts it, “This shouldn’t cause too much of a market reaction as it’s fully priced into stocks at these levels and any small rally would likely be the result of positive market momentum rather than anything else.” The real market mover will be any shift in the “dot plot” outlook for 2025, and whether Powell’s tone shifts from “wait-and-see” to signaling a near-term cut.