
IMF Lifts US Growth Forecasts on Lower Tariffs, Boost From One Big Beautiful Bill Act
The IMF said in its latest World Economic Outlook (WEO) report, released on July 29, that it now expects the U.S. economy to expand by 1.9 percent in 2025 and by 2 percent in 2026. That's up 0.1 and 0.3 percentage points, respectively, from the IMF's projections in April, when it expected higher tariffs and tighter financial conditions than have since materialized.

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Wall Street Journal
4 hours ago
- Wall Street Journal
Cash Windfall From Trump's Tax Law Is Starting to Show Up at Big Companies
The magnitude of the cash savings from this summer's federal tax legislation is starting to take shape at America's biggest companies. AT&T T 1.24%increase; green up pointing triangle recently said it expected $1.5 billion to $2 billion in cash tax savings this year, due to provisions in the tax-and-spending law dubbed the One Big Beautiful Bill Act. The high end of the range is equivalent to an 11% boost to analyst estimates of 2025 free cash flow before the law was enacted. AT&T estimated annual cash tax savings of $2.5 billion to $3 billion in both 2026 and 2027.


New York Post
19 hours ago
- New York Post
Trump admin plans first ‘Golden Dome' test of space-based missile defense system: report
Pentagon officials are aiming to test President Trump's space-based Golden Dome missile defense system to safeguard the US in the fourth quarter of 2028, according to a report. That timeframe lines up with Trump's ambitious goal to 'have it done in three years' and comes amid pitches from defense contractors to score coveted contracts to develop the cutting-edge system. 'They want a win to point to in November [2028],' a defense official told CNN. 'And DoD [Department of Defense] wants to avoid anything they perceive will slow them down.' Advertisement The test, which will be conducted by the Missile Defense Agency, is expected to be called FTI-X, which stands for 'Flight Test Integrated,' in a nod to how it will assess the Golden Dome's vast array of sensors and weapons systems, according to the report. Development of the state-of-the-art missile defense system is expected to cost about $175 billion, according to Trump, who tapped Gen. Michael Guetlein, vice chair of operations at the Space Force, to oversee the ambitious project in May. 4 President Trump wants the US to develop a state-of-the-art missile defense system to protect the homeland from advanced attacks. Getty Images Advertisement 4 The Golden Dome system is intended to safeguard the colossal continental US. AP Congress has already allocated $25 billion in funding for the Golden Dome in the One Big Beautiful Bill Act, which Trump signed into law last month. Military officials have explored space-based missile defense technologies for decades, including during Ronald Reagan's Star Wars program, also known as the Strategic Defense Initiative (SDI). Space-based missile defense technology can be advantageous because it can help thwart an enemy missile much earlier in its trajectory than other technologies that the US currently has in its arsenal. Advertisement It can also reduce geographical barriers and catch certain types of enemy missiles at a stage when they are slower and easier to intercept. However, there are many drawbacks. The US would need to make significant technological advances to develop that system, which is likely to be very costly and could entice other countries to weaponize space. 4 Skeptics have raised questions about whether the Golden Dome can be completed on time and within the budget President Trump laid out. Getty Images The defense official called it a 'hard problem, and technically very risky,' CNN reported. Advertisement 'The possible number of satellites needed to achieve a probability of engagement success is going to be very high, given the time and area needed to cover the continental United States,' the defense official said. Plans for the test in 2028 are expected to be 'phase one' of the project. A deluge of defense contractors and other private companies have been jockeying for contracts to help develop the massive defense system. Precise details of how the Golden Dome system will function are not fully known. Trump has taken inspiration from Israel's feted Iron Dome system, which helps defend populated areas from short-range attacks. Trump's plans would encompass much more sophisticated missiles, such as ballistic and hypersonic missiles, that may potentially be fired off from much more distant locations than what Iron Dome defends against. 'Once fully constructed, the Golden Dome will be capable of intercepting missiles even if they are launched from other sides of the world,' Trump teased in May. 4 Precise details about how the Golden Dome system will function are not clear. Getty Images Guetlein has admitted that the Pentagon faces enormous challenges in successfully completing the project. Advertisement 'I think the real technical challenge will be building of the space-based interceptor,' Guetlein said at a summit last month. 'That technology exists, I believe. I believe we have proven every element of the physics, that we can make it work.' 'What we have not proven is, first, can I do it economically, and then second, can I do it at scale? Can I build enough satellites to get after the threat? Can I expand the industrial base fast enough to build those satellites?' The initiative comes amid advancements in the American space industry, with tycoons such as Elon Musk working to bring down the costs of launching satellites. The Defense Department didn't reply to a request for comment Sunday.
Yahoo
a day ago
- Yahoo
Putin unfazed as his economy holds up
The Kremlin claims to be unfazed by Donald Trump's new ceasefire deadline, and with good reason: though dangerously overheated by the war machine and western sanctions, Russia's economy is far from collapse. Sanctions are putting pressure on the rouble and dragging down economic growth as a boom driven by massive military spending comes to an end. They have also hit Russia's oil and gas revenues: they made up about 30% of the federal budget last year, and dropped by a third this spring. The country's oil exports remain stable by volume – albeit at lower prices. Growth is falling. In 2024 the economy grew by 4.3%, according to the state statistics agency Rosstat, up from 3.6% in 2023. But in the first quarter of 2025 growth had dropped to 1.4% and is predicted to level out at an annual growth figure of 1.6%. In June, Russia's economy minister, Maxim Reshetnikov, said the country was 'on the brink of a recession'. The International Monetary Fund (IMF) downgraded its forecast for the Russian economy even further. In its July World Economic Outlook Update, the IMF predicts Russia's gross domestic product (GDP) will rise just 0.9% in 2025, down from its 1.5% projection in April. The downturn was attributed to recent data suggesting a drop in retail sales and industrial production. The gloomy predictions have forced Russian officials to acknowledge the economic hit caused by the war in Ukraine and sanctions, particularly those restricting Russia's access to foreign markets and technology, that have affected the finance and energy sectors hardest. Elvira Nabiullina, governor of the Russian Central Bank, was even gloomier, saying the resources that had stoked growth in wartime – defying sanctions and pouring money into military contracts – had been 'truly exhausted'. The official inflation figure is about 10%, although independent analysts suggest it could be more than 15%. But even having constrained Russia's economy, existing sanctions haven't triggered collapse. Until now, Trump has not added new sanctions to those imposed on Russia by the Biden administration. Russia's economy is war-driven and state-controlled. Further sanctions might weaken it – or force the state to invent other ways of evading sanctions. Some Republicans think Putin can't go on dodging the sanction squeeze for ever. He seems determined to prove them wrong. Photograph by Dado Galdieri/Bloomberg via Getty Images