BOK Cuts Rate to Cushion Economy From Tariffs, Political Turmoil
The Bank of Korea delivered a widely expected interest-rate cut Thursday to help buffer the export-driven economy from Donald Trump's sweeping trade tariffs and revive domestic activity after months of political turmoil eroded growth.
The central bank lowered its seven-day repurchase rate by a quarter percentage point to 2.5% on Thursday. The rate cut, the fourth since the BOK began its easing cycle in October, was forecast by all 21 polled economists.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
Trump Rages at His Own Appointed Judge in Explosive Tariff Tirade
President Donald Trump blew up at his own appointee to a federal trade court that struck a massive blow to his tariff agenda. Trump went on a lengthy Truth Social rant on Thursday a day after the U.S. Court for International Trade ruled that he lacked authority to impose the bulk of his sweeping tariffs. Trump took particular issue with a conservative legal group that he said advised him on whom to nominate as judges. 'Where do these initial three Judges come from? How is it possible for them to have potentially done such damage to the United States of America? Is it purely a hatred of 'TRUMP?' What other reason could it be?' he wrote. The three-judge panel was composed of appointees of Trump, Barack Obama, and Ronald Reagan. They ruled unanimously that the International Emergency Economic Powers Act of 1977 (IEEPA), which Trump invoked to justify his tariffs, does not grant him 'unbounded authority' to impose global levies. In 2018, Trump appointed Judge Timothy Reif to the federal trade court as part of the 15th wave of judicial nominees. Reif previously served as a senior advisor and general counsel of the U.S. Trade Representative and spent a decade as chief international trade counsel for the House Ways and Means Committee. Trump kept mum about the federal trade court's ruling against him until it was put on pause by an appeals court on Thursday. On the same day, federal judge Rudolph Contreras, an Obama appointee, issued a similar ruling stating that the IEEPA does not authorize Trump to impose his tariffs. 'The ruling by the U.S. Court of International Trade is so wrong, and so political! Hopefully, the Supreme Court will reverse this horrible, Country threatening decision, QUICKLY and DECISIVELY,' he said. 'Backroom 'hustlers' must not be allowed to destroy our Nation!' Trump also took aim at the Federalist Society, blasting its chairman Leonard Leo as a 'real sleazebag' and a 'bad person, who in his own way, probably hates America, and obviously has his own separate ambitions.' His bad blood with the conservative legal organization appeared to stem from its recommendations for judges. 'I was new to Washington, and it was suggested that I use The Federalist Society as a recommending source on Judges. I did so, openly and freely,' Trump said. 'I am so disappointed in The Federalist Society because of the bad advice they gave me on numerous Judicial Nominations. This is something that cannot be forgotten!' Though a high-stakes legal battle over Trump's tariffs is now underway, the administration might still be able to push through with its much-hyped levies, according to economists at Goldman Sachs. 'This ruling represents a setback for the administration's tariff plans and increases uncertainty but might not change the final outcome for most major U.S. trading partners,' they wrote in a research note. 'For now, we expect the Trump administration will find other ways to impose tariffs.'
Business Insider
11 minutes ago
- Business Insider
Middle managers, beware: The Great Flattening layoff trend has moved beyond Big Tech and into retailers like Walmart
Middle managers in Big Tech, and now at Walmart, have faced major layoffs. Recession fears and tariff uncertainty are driving companies to cut costs. The trend, known as "The Great Flattening," is spreading. It's a tough time to be a middle manager. Companies are looking for ways to cut costs, and mid-career employees' jobs are increasingly on the chopping block. Earlier this year, Big Tech giants like Google, Intel, and Amazon announced their plans to lay off thousands of workers, mostly managers. Last week, the trend hit Walmart, which said it will "remove layers and complexity" by reducing its labor force by 1,500 people, many of them in midlevel corporate roles. Retailer Wayfair also recently laid off managers, and some companies like fintech firm Block are moving managers into non-management roles. The latest manager purge is partially a symptom of a US economy rocked by recession fears and federal tariff whiplash. Several companies — including Walmart — have begun to raise prices because President Donald Trump's proposed levies are hiking their overhead costs. Reducing higher-paid, midlevel employees is another way for them to save money and streamline corporate bureaucracy. What's more, workplace efficiency is en vogue at the federal level, with Elon Musk and the White House's DOGE office spearheading a widespread staff reduction at government agencies. It's all adding up to 2025's " Great Flattening." The 'Great Flattening' is a management philosophy and a way to cut costs CEO Mark Zuckerberg said in 2023 alongside a bout of Meta layoffs that " flatter is faster." "I don't think you want a management structure that's just managers managing managers, managing managers, managing managers, managing the people who are doing the work," he said. Amazon CEO Andy Jassy similarly said in 2024, "Having fewer managers will remove layers and flatten organizations more than they are today." Daniel Zhao, lead economist at the job-search platform Glassdoor, told Business Insider that this flattening isn't a random financial fluke, but the result of yearslong labor market trends. He said companies across industries opted for "rapid headcount growth" in the early pandemic years. To accommodate a slew of new hires, many of these companies needed more middle managers to train young talent. Zhao added that some companies were primed to " hand out promotions into the management ranks to attract and retain high performers during the labor shortages era" of the early 2020s. With recent hiring slowdowns, Zhao said that this inflated middle management tier is becoming less necessary. "When the economy shifts into a lower gear, companies start looking for where they can cut workforce costs, often looking at high-salaried managers," he said. "And as companies slow down hiring, the need for onboarding and training new workers diminishes." Despite this trend, the labor market is still strong on paper, and overall, layoffs are low. And, while "The Great Flattening" is ramping up, it also isn't new. Big Tech's layoffs of early- and mid-career workers have been happening on and off for years. Walmart's recent announcement signals that the strategy is gaining broader appeal. Middle managers are feeling the heat Gallup reported that overall employee engagement dropped to its lowest level in a decade last year, and Glassdoor's Employee Confidence Index shows that less than half of midlevel employees have a positive business outlook about their employers as of April, the lowest figure since the job-search platform began measuring employee confidence in 2016. Glassdoor data published in November also shows that laid-off middle managers often have to take lower-seniority or lower-salaried positions to break back into the workforce. Those who aren't laid off and remain managers could find themselves with an overwhelming amount of direct reports. BI has heard from over 750 Americans of all ages about their experiences with the job market. Some are boomeranging back to old employers, while others are left empty-handed despite hundreds of applications. Many job seekers have become so frustrated by rejections and ghosting that they're taking whatever roles they can find. Zhao said the flattening is likely to impact more than just managers. Each industry hit by layoffs could disrupt its traditional career ladder, especially for young people. As Zhao put it: "This trend also creates bunching down at the bottom of the career ladder as former managers compete for roles that traditionally would be opportunities for entry-level or experienced hires to move up the career ladder."
Bloomberg
12 minutes ago
- Bloomberg
Credit Agricole Brings Back Floating Samurai Bonds After Decade
Credit Agricole SA is issuing floating-rate Samurai bonds for the first time in about a decade, as it draws strong demand from investors worried about rising Japanese government bond yields. The French bank priced a seven-tranche Samurai bond deal totaling ¥85 billion ($591 million) including a five-year floating-rate tranche that raised ¥26.9 billion, exceeding the ¥16.3 billion offered in the five-year fixed-rate tranche.
