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Elon Musk calls Trump's spending bill 'utterly insane' as Senate gears up for a vote

Elon Musk calls Trump's spending bill 'utterly insane' as Senate gears up for a vote

Yahoo11 hours ago

The Senate is debating Trump's spending bill and could vote on it as early as Monday.
The huge piece of legislation could affect all aspects of American life and has divided lawmakers.
Elon Musk, until recently a Trump ally, called the bill "utterly insane" and "political suicide."
The bromance between President Donald Trump and Elon Musk is most definitely over.
The Tesla CEO, who until recently was the face of the White House DOGE Office and Trump's efforts to cut government spending, had some more choice words for the president's signature spending bill on Saturday.
"The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country! Utterly insane and destructive," Musk said on X. "It gives handouts to industries of the past while severely damaging industries of the future."
Senate Republicans managed to push the bill past a key procedural hurdle over the weekend, allowing debate to begin. A final vote could come as early as Monday.
Republicans have hoped to get a version of the bill to Trump's desk by the president's requested July 4 deadline. Some lawmakers, however, remain opposed to the bill.
Democrats, meanwhile, have remained united in their opposition, and have found a surprise ally in Musk.
In his criticisms on Sunday, Musk focused on provisions in the bill that would terminate Biden-era tax credits for renewable energy, such as solar, wind, and battery manufacturing.
Tesla, Musk's automotive company, has an energy generation and storage business that earned $2.7 billion in revenue during Q1 2025. The company also uses batteries and solar cells in many of its products.
In response to an X post from Michael Thomas — the founder of Cleanview, a company that tracks clean energy development — who said the bill would likely decrease energy capacity in the country, Musk said the bill would be "incredibly destructive" for the United States.
In another post, Musk shared a poll about the bill and said it would be "political suicide" for the Republican Party. He also reposted several posts criticizing the bill, including one by Kentucky Rep. Thomas Massie, a Republican.
"'BBB' = our credit rating if this bill becomes law," Massie wrote on X.
Trump's mega bill will impact nearly every aspect of American life, including healthcare, student loans, taxes, Social Security, Medicaid, clean energy, defense, immigration, tipping, AI regulation, and more.
Musk's X posts echo remarks he made earlier this month when his feud with Trump took a public turn. Musk called the bill a "disgusting abomination" on X before laying into Trump's personal life.
At the time, White House press secretary Karoline Leavitt told Business Insider said the situation was "an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted. The President is focused on passing this historic piece of legislation and making our country great again."
The tech billionaire later apologized to Trump on X, saying he regretted "some" of his posts and that they "went too far."
Representatives for the White House and Musk did not respond to a request for comment from Business Insider.
Read the original article on Business Insider

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Fed Versus Trump on Tariffs Impact Will Soon Be Put to the Test
Fed Versus Trump on Tariffs Impact Will Soon Be Put to the Test

Yahoo

time28 minutes ago

  • Yahoo

Fed Versus Trump on Tariffs Impact Will Soon Be Put to the Test

(Bloomberg) -- It's a widely held belief among economists that President Donald Trump's tariffs will boost inflation notably over the next few months. But muted price increases so far have called that assumption into question, emboldening the White House and opening up divisions at the Federal Reserve. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Sao Paulo Pushes Out Favela Residents, Drug Users to Revive Its City Center Sprawl Is Still Not the Answer Mapping the Architectural History of New York's Chinatown Anticipation of firmer inflation has kept the US central bank from delivering interest-rate cuts this year as it waits to see what happens. The Trump administration is applying intense pressure on Fed Chair Jerome Powell to bring down borrowing costs, and two Fed governors in recent days have publicly diverged from Powell by asserting a cut could be appropriate as soon as July. A pair of key reports in the coming weeks — the monthly jobs report due Thursday and another on consumer prices due July 15 — will be critical in determining the central bank's next steps. Both are expected to finally begin reflecting the impact of tariffs, but any surprises could change the schedule for rate cuts. 'One of the things that makes it such a difficult situation is that we simply haven't done this sort of experiment in the past,' William English, a professor at the Yale School of Management and former high-ranking Fed economist, said of the tariffs. 'We're outside the range of experience for a modern US economy, and so it's very difficult to be confident about any forecast.' Trump and his allies have escalated attacks on the Fed and Powell in recent weeks, motivated by data showing inflation remained tame through May despite the tariffs put in place. The president has lobbed several insults at Powell, calling him a 'numbskull' and 'truly one of the dumbest, and most destructive, people in Government.' Other Trump administration officials and some congressional Republicans — oftentimes more reticent to weigh in on monetary policy — have joined in as well. Kevin Hassett, director of the White House National Economic Council, said on June 23 that there is 'no reason at all for the Fed not to cut rates right now.' Hassett, who is seen as a possible replacement for Powell when the Fed chair's term expires next year, emphasized data due in the coming weeks: 'I would guess that if they see one more month of data, they're going to really have to concede that they've got the rate way too high,' he said. The debate reflects the delicate situation the Fed is in as it aims to avoid a policy mistake. Should officials cut rates just as tariff-induced price pressures kick in, they may have to resort to more aggressive measures later on. But holding rates at an elevated level to combat inflation that never materializes risks restraining the economy unnecessarily, potentially damaging the labor market in the process. Forecasters expect inflation to accelerate in the coming months. Powell told Congress in testimony last week he expects 'meaningful' price increases to materialize in June, July and August data as the levies work their way through the economy. But he added Fed officials are 'perfectly open to the idea' the impact could be smaller than feared, 'and if so, that'll matter for our policy.' The Bureau of Labor Statistics will publish its report on consumer prices for June on July 15, two weeks before the central bank's next policy meeting. Fed Governors Christopher Waller and Michelle Bowman — both Trump appointees — have broken step with Powell and their other colleagues to raise the possibility of a rate cut next month if the data cooperate. 'I think we've got room to bring it down, and then we can kind of see what happens with inflation,' Waller said in a June 20 CNBC interview, adding the central bank could always bring a halt to rate cuts again if necessary. 'We've been on pause for six months to wait and see, and so far the data has been fine.' Still, investors currently see only about a 20% chance of a July move and are instead betting the next cut will come in September, according to federal funds futures. Tariff Math Benign inflation readings through May suggest companies are finding ways, at least for now, to avoid price hikes despite Trump's tariffs on dozens of US trading partners — and widespread uncertainty over how long the duties will last and the level where they'll ultimately settle. One potential explanation is companies are working through inventories of imports they frontloaded in the first quarter to get ahead of the levies, said Josh Hirt, a senior US economist at Vanguard Group. 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Stock market today: Dow, S&P 500 and Nasdaq futures rise as trade deal hopes lift stocks toward more records
Stock market today: Dow, S&P 500 and Nasdaq futures rise as trade deal hopes lift stocks toward more records

Yahoo

time29 minutes ago

  • Yahoo

Stock market today: Dow, S&P 500 and Nasdaq futures rise as trade deal hopes lift stocks toward more records

US stock futures climbed on Monday amid signs of progress in trade talks, setting up the major indexes for more all-time highs to end one of the most volatile first halves of a year in recent memory. Dow Jones Industrial Average futures (YM=F) rose 0.5%. Contracts on the S&P 500 (ES=F) also gained roughly 0.5%, while those on the tech-heavy Nasdaq 100 (NQ=F) jumped 0.7%. Stocks are poised to start a holiday-shorted week on a high note, fueled in part by easing fears of a global trade war. On Friday, all three major indexes closed higher, with the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) reaching new record highs for the first time since February — the start of the year's tariff-fueled stock swings. Canada scrapped its digital services tax targeting US technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations. A late-Friday dip in stocks was triggered by Trump's abrupt halt to talks with Canada, citing its digital tax policy. A July 9 deadline looms before the possible resumption of Trump's unilateral tariffs, which Trump on Sunday said he didn't think he'd "need to" extend. India has extended its Washington visit to finalize a deal, and Trump administration officials last week confirmed a trade framework with China was in place, bolstering investor sentiment. Meanwhile, market watchers are closely following Senate negotiations over Trump's proposed $4.5 trillion tax cut bill, as Republican leaders race to persuade party holdouts to back the legislation. The Congressional Budget Office estimates it would add $3.3 trillion to the deficit over a decade, as it stands. The Senate is set to vote on dozens of amendments in a marathon session on Monday. Markets will close at 1 p.m. on Thursday and remain shut on Friday for the Fourth of July. Yahoo Finance's Allie Canal reports: Read more here. Earnings: No notable earnings releases. Economic data: MNI Chicago PMI (June); Dallas Fed manufacturing activity Here are some of the biggest stories you may have missed overnight and early this morning: Warring GOP puts Trump tax bill to marathon Senate vote today Canada scraps digital services tax that Trump slammed Disney's stock has bagged a Jeffries upgrade — here's why Week ahead: Crucial jobs report looms with stocks at records Trump: TikTok buyer group found, needs China's OK Bitcoin soars, altcoins fade in $300 billion crypto shakeout China's economy shows surprising signs of strength Yahoo Finance's Josh Schafer lays out what investors should know about the week ahead: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Hewlett Packard Enterprise Company (HPE) stock rose 6% in premarket trading on Monday following the news that HPE and Juniper Networks have reached an agreement with the US Department of Justice that it will not challenge HPE's acquisition of Juniper. Palantir (PLTR) stock rose 5% before the bell and are trading at an all-time high, up 90% this year. Yahoo Finance Anchor Julie Hyman recently broke down the stock's history on a episode of Market Domination Overtime: Juniper Networks, Inc. (JNPR) stock rose 8% premarket after the DOJ said it would not pursue an investigation into HPE's acquisition of Juniper. As earning season approaches, Goldman Sachs (GS) said on Monday that US profit margins will be tested as investors await to see how President Trump's war has hurt companies. Goldman's David Kostin said Q2 earnings will show the immediate impact of tariffs, which have risen about 10% this year. 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Benchmark stock indexes in Tokyo and Shanghai also moved higher amid optimism that the US and its top trading partners can hammer out trade deals. Prime Minister Mark Carney and Trump now plan to reach a deal by July 21, Canada's finance ministry said. Trump warned on Friday that he would set new tariffs on Canadian goods within a week, risking fresh tension between the two countries. The White House has set a July 9 deadline for trading partners to broker deals with the US over the sweeping 'reciprocal' tariff rates announced in early April. The 3% tech tax would have hit firms like Apple (AAPL), Google (GOOG), and Amazon (AMZN) starting on Monday. Canada will now bring forward legislation to cancel the tax. "The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians," a statement from the Canadian finance ministry said. "Canada's preference has always been a multilateral agreement related to digital services taxation." Oil prices fell overnight Sunday as global markets adjusted to the easing of tensions in the Middle East, in combination with a commitment from OPEC+ to increase supply in August. Reuters reports: Read more here. Yahoo Finance's Allie Canal reports: Read more here. Earnings: No notable earnings releases. Economic data: MNI Chicago PMI (June); Dallas Fed manufacturing activity Here are some of the biggest stories you may have missed overnight and early this morning: Warring GOP puts Trump tax bill to marathon Senate vote today Canada scraps digital services tax that Trump slammed Disney's stock has bagged a Jeffries upgrade — here's why Week ahead: Crucial jobs report looms with stocks at records Trump: TikTok buyer group found, needs China's OK Bitcoin soars, altcoins fade in $300 billion crypto shakeout China's economy shows surprising signs of strength Yahoo Finance's Josh Schafer lays out what investors should know about the week ahead: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Hewlett Packard Enterprise Company (HPE) stock rose 6% in premarket trading on Monday following the news that HPE and Juniper Networks have reached an agreement with the US Department of Justice that it will not challenge HPE's acquisition of Juniper. Palantir (PLTR) stock rose 5% before the bell and are trading at an all-time high, up 90% this year. Yahoo Finance Anchor Julie Hyman recently broke down the stock's history on a episode of Market Domination Overtime: Juniper Networks, Inc. (JNPR) stock rose 8% premarket after the DOJ said it would not pursue an investigation into HPE's acquisition of Juniper. As earning season approaches, Goldman Sachs (GS) said on Monday that US profit margins will be tested as investors await to see how President Trump's war has hurt companies. Goldman's David Kostin said Q2 earnings will show the immediate impact of tariffs, which have risen about 10% this year. Most costs will be passed on to consumers, but margins will suffer if firms absorb more than expected. Early results are mixed: General Mills (GIS) stock fell 5% last week due to a weak forecast and tariff warning, while Nike (NKE) rose 15% after announcing it will offset higher duties. Bloomberg News reports: Read more here. European stocks outperformed their US peers by the biggest margin on record in dollar terms during the first half. It's a dramatic sign of how the region's markets are staging a comeback after more than a decade in the doldrums. Bloomberg reports: Read more here. Canada has scrapped its planned digital services tax on US tech firms late on Sunday, just hours before it was due to come into effect. The move aims to revive stalled trade talks with the US, which President Trump suddenly halted on Friday over the tax, calling it a "blatant attack" on American tech companies. US stock futures rose as investors welcomed the news. Benchmark stock indexes in Tokyo and Shanghai also moved higher amid optimism that the US and its top trading partners can hammer out trade deals. Prime Minister Mark Carney and Trump now plan to reach a deal by July 21, Canada's finance ministry said. Trump warned on Friday that he would set new tariffs on Canadian goods within a week, risking fresh tension between the two countries. The White House has set a July 9 deadline for trading partners to broker deals with the US over the sweeping 'reciprocal' tariff rates announced in early April. The 3% tech tax would have hit firms like Apple (AAPL), Google (GOOG), and Amazon (AMZN) starting on Monday. Canada will now bring forward legislation to cancel the tax. "The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians," a statement from the Canadian finance ministry said. "Canada's preference has always been a multilateral agreement related to digital services taxation." Oil prices fell overnight Sunday as global markets adjusted to the easing of tensions in the Middle East, in combination with a commitment from OPEC+ to increase supply in August. Reuters reports: Read more here.

Live updates: Senate considering raft of amendments to Trump's massive tax and immigration bill
Live updates: Senate considering raft of amendments to Trump's massive tax and immigration bill

Washington Post

time32 minutes ago

  • Washington Post

Live updates: Senate considering raft of amendments to Trump's massive tax and immigration bill

The Senate is set to convene Monday morning to consider a raft of amendments to President Donald Trump's massive tax and immigration package, most of them offered by Democrats and destined to fail in the Republican-led chamber. Trump has urged Congress to get the bill to his desk by July 4, which is Friday. A Senate-passed bill would require action in the House, which narrowly passed its own version of the One Big Beautiful Bill last month. The legislation would extend tax cuts passed in 2017, enact campaign promises such as no tax on tips and spend hundreds of billions of dollars on the White House's mass deportation drive and national defense priorities. To partially offset the cost, it would make steep cuts to safety-net programs. Democrats are united in opposition. Democratic groups are launching a major organizing push Monday to attack Republicans' signature bill this summer and prepare for the coming elections, an effort that will focus on voter registration and volunteer efforts to make their case to community groups not focused on politics. TORONTO — Canada said late Sunday it would rescind a new tax it planned to collect from large tech companies after President Donald Trump last week called the levy a 'blatant attack' on the United States and said he would suspend trade talks with Ottawa over it. Senate Republicans spent Sunday marshaling support for the centerpiece of President Donald Trump's second-term agenda, a sprawling tax and immigration package, working to prevent defections after a near-revolt over the weekend. The GOP is racing to push the mammoth budget proposal across Trump's desk by a self-imposed July 4 deadline, but fissures remain within the party over the cuts to social benefit and anti-poverty programs and the bill's growing price tag. Republican Sen. Thom Tillis said Sunday that he will not seek reelection next year, less than 24 hours after President Donald Trump threatened him with a primary challenge for opposing Trump's massive tax and immigration bill.

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