Has Trump finally killed the US's electric car dream?
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Prospects for electric car sales look gloomy in the US after president Donald Trump's government killed purchase incentives and ripped up legislation forcing ca rmakers to improve their average fuel consumption. But does that mean EVs are dead over there?
The recent push by car makers to launch more EVs in the US is definitely going into reverse, believes General Motors. 'I would be surprised if there aren't fewer EV retailers or EV sellers in the next four to five years,' its CFO, Paul Jacobson, told the JP Morgan Auto Conference on 13 August.
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Reuters
38 minutes ago
- Reuters
Charting the projected US power capacity mix through 2035
LITTLETON, Colorado, Aug 21 (Reuters) - U.S. power generation capacity is evolving at the fastest pace in decades, as utilities scramble to ensure that supplies keep up with rapidly growing electricity demand from data centers, AI applications, businesses, homes and electric vehicles. To help frame expectations on what power sources will likely be in play over the coming years, the U.S. Energy Information Administration (EIA) issues decade-out projections on generation capacity of the top power sources within the U.S. energy system. Those projections frequently change, and will be especially likely to alter course following the aggressive changes to U.S. government policy on renewable energy since U.S. President Donald Trump returned to office. Even so, it is instructive to lay out current expectations for the U.S. power generation mix through the next 10 years, and then compare future actual capacity additions to those projections over time. Even before the Trump administration slashed support for solar and wind power development, the EIA projected that natural gas would remain the primary power source within the U.S. power system for at least another decade. Indeed, total projected gas-fired power capacity was expected to grow by 3% over the next decade to 523.3 gigawatts (GW) by the end of 2035, EIA data shows. Given the pressure that utilities are under to urgently boost power supplies just as incentives to develop clean power are stripped away, it is likely that the actual capacity growth for U.S. gas power will be higher. Even so, due to the much faster growth rate of clean power sources over the remainder of 2025 at least, gas is set to lose some ground within the overall U.S. power mix going forward. In 2025, gas-fired power accounts for around 42% of the overall power mix. That share is set to drop to around 38% by 2028, and then remain steady through 2035. Coal's share of the generation mix is set for a much steeper decline, from around 14% currently to 10% by the end of the decade. Total coal capacity is expected to shrink from around 167 GW currently to around 133 GW by 2035 as outdated plants close. Nuclear reactors and hydroelectric power stations are also set to lose generation share, from around 8% and 7% respectively right now to around 7% and 6% respectively by 2035. Total installed capacity of nuclear power within the U.S. generation mix is currently around 98.4 GW, and is expected to hold largely flat for the coming decade. Hydropower capacity is also slow moving, and is expected to increase only slightly from the current 84.2 GW by 2035. EIA projects that solar, wind and battery storage systems will expand their respective generation shares notably by 2035, due to their currently much-faster growth rates. In 2025, both solar and wind power are estimated to have a roughly 13% share of the current generation mix. By 2028, however, solar farms are projected to account for an 18% share of the pie thanks to a combination of lower cost and quicker ramp up times compared to other generation options. Total utility-scale solar generation capacity is projected to rise from around 156 GW currently to around 255 GW, or by 64%, by 2035, EIA data shows. In contrast, wind farm capacity is expected to grow more slowly due to high component costs, limited expansion area and greatly diminished policy support in Washington, DC. Total wind capacity is currently estimated around 160 GW, and will rise by 15% or by 25 GW to 185 GW by 2035. Battery storage capacity is expected to outgrow all other parts of the power mix, with the current capacity of around 45 GW set to more than double to around 97.2 GW by 2035. Rapidly declining battery costs plus enduring policy support for batteries in utility systems are expected to sustain battery uptake even as the momentum of solar and wind power systems drops down a gear or two. The scale of changes to projected capacity vary significantly by region, with the Southwest and Western U.S. expected to see the largest increases in overall generation capacity by 2035. The Western half of the U.S. is also projected to be home to the largest overall increases in solar and battery capacity, due to the greater solar radiation and higher amounts of suitable land for solar farms and battery networks in those regions. Around 55% of total solar capacity growth and 82% of battery capacity growth are projected to take place in the Southwest and Western U.S., EIA data shows. In contrast, around two-thirds of the projected increase in gas-fired power capacity is expected to occur in the Eastern half of the country. Just over 9 GW of the 14 GW of total projected new gas capacity is expected to be constructed in the Southeast and Northeast areas. Given the sharp cuts to incentives to add renewable power beyond 2025, utilities in the Southwest are also likely to dial up their gas capacity over the coming decade, especially if demand for data centers and air conditioning continues to grow. Coal capacity is currently projected to decline in all regions by 2035. But given the support for coal from the current administration, as well as the growing strain on power grids due to rising electricity demand, it is likely that some of the projected coal plant shutdowns will be postponed. That will likely result in coal maintaining a larger share of the U.S. generation mix a decade from now than currently projected. Gas's share of the U.S. mix is also more likely to overshoot than undershoot projections, especially given the anti-renewables stance of current policymakers which may steer more utilities to add gas over solar or wind. Even so, it is clear that overall capacity development momentum remains in favour of clean energy, especially solar and battery systems, and their continued growth looks certain in the years ahead even as federal policy support phases out. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab.
Reuters
2 hours ago
- Reuters
Currencies steady as investors ponder Fed independence, await Powell speech
SINGAPORE, Aug 21 (Reuters) - The U.S. dollar drifted on Thursday as investors fretted about the Federal Reserve's independence after yet another attack from President Donald Trump ahead of remarks from Chair Jerome Powell later this week that could influence the outlook for rates. Trump called on Fed Governor Lisa Cook to resign on the basis of allegations made by one of his political allies about mortgages she holds in Michigan and Georgia, intensifying his effort to gain influence over the U.S. central bank. Cook said she had "no intention of being bullied to step down" from her position at the central bank. Trump has also told aides he is considering trying to fire Cook, the Wall Street Journal reported on Wednesday. "It has the potential to raise questions around the Fed's oversight and regulatory functions but it has little to no near-term monetary policy implications," said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities. That explained the relatively subdued reaction in the currency markets to the news as the dollar initially dipped but was mostly calm in listless trading in Asian hours. The Japanese yen held onto gains made in previous sessions and was little changed at 147.36 per dollar, while the euro was steady at $1.1646. The dollar index , which measures the U.S. currency against six other peers, was steady at 98.301, on course for a 0.4% rise this week. Sterling last fetched $1.3454, hovering near a one-week low. Data on Wednesday showed inflation hit its highest in 18 months in July, with markets not fully pricing the next rate cut until well into next year. Trump has repeatedly criticised Powell for being too slow to cut rates, stoking investor worries about the central bank's independence and its credibility. Investors expect Trump will replace Powell with a more dovish appointment when his term ends in May. Trump earlier this month said he would nominate Council of Economic Advisers Chairman Stephen Miran to serve out the final few months of a vacant Fed seat after Adriana Kugler unexpectedly resigned. Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney, said if Cook resigns it would create another opening for Trump to appoint a Fed Governor who will vote to lower interest rates. "Perceived political interference in the Federal Reserve can undermine its independence, steepening the yield curve and denting the dollar's safe haven status." The main focus this week has been on whether Powell will push back against market expectations for a rate cut at the Fed's September 16-17 meeting when he speaks on Friday at the Jackson Hole meeting, following a weak jobs report for July. "Markets are adamant that recent labour market data necessitates some policy calibration and are expecting Chair Powell to tip his hat in that direction," TD's Newnaha said. The benchmark U.S. 10-year yield was steady 4.291% , while the two-year yield, which is more sensitive to the monetary policy, was at 3.749% . The gap between 2- and 10-year yields was at 54 bps . However, the curve's steepening trend remained intact as the market expects the Fed to resume its rate-cutting cycle as soon as the September meeting. Traders are pricing in an 82% chance of a 25-basis-point rate cut next month, CME FedWatch tool showed. While the odds have lowered from last week after hotter than expected producer price inflation tempered expectations, investors are still pricing in over 50 bps of easing this year. Some analysts cautioned that markets could end up being disappointed by Powell's speech, noting that the impact of Trump's tariffs on inflation remains unclear. In other currencies, the New Zealand dollar was nursing steep overnight losses at $0.58205 after diving 1.2% to its lowest level since April. New Zealand's central bank cut interest rates on Wednesday as expected but left the door wide open to yet more easing if needed. The Australian dollar eased 0.13% to $0.64245, hovering near a two-week low.
The Guardian
2 hours ago
- The Guardian
Trump has bought more than $100m in bonds while president, disclosure shows
Donald Trump has bought more than $100m in company, state and municipal bonds since taking office in January, according to new disclosures which shed further light on the vast holdings of the US's billionaire president. The forms, posted online on Tuesday, show the Republican former real estate mogul made more than 600 financial purchases since 21 January, the day after he was inaugurated for his second term in the White House. The 12 August filing from the US Office of Government Ethics does not list exact amounts for each purchase, only giving a broad range. They include corporate bonds from Citigroup, Morgan Stanley and Wells Fargo, as well as Meta, Qualcomm, the Home Depot, T-Mobile USA and UnitedHealth Group. Other debt purchases include various bonds issued by cities, states, counties and school districts as well as gas districts, and other issuers. The holdings cover sectors that could benefit from US policy shifts under his administration, such as financial deregulation. A senior White House official said Trump continued to file mandatory disclosures about his investment portfolio but that neither he nor his family had a role in managing or selecting the bonds, which are managed by a third-party financial institution. Federal ethics officials certified the reports, which are in compliance with applicable laws, according to the official, who declined to be named. Trump, a businessperson turned politician, has said he has put his companies into a trust managed by his children. 'President Trump's net worth has increased substantially, with much of that concentrated in crypto holdings and Trump Media. Given that, there is no evidence currently that his bond purchases are anything other than a prudent diversification within his billions of dollars in assets,' said John Canavan, lead US analyst at Oxford Economics. 'It seems like he was primarily purchasing corporate and municipal bonds and others that are high quality and highly rated, so it's just a way to take a little bit of risk off the table,' he said. Trump's annual disclosure form filed in June showed his income from various sources still ultimately accrues to the president – something that has opened him up to accusations of conflicts of interest. In that disclosure, which appeared to cover the 2024 calendar year, Trump reported more than $600m in income from cryptocurrencies, golf properties, licensing and other ventures. It also showed his push into crypto had added substantially to his wealth. Overall, Trump reported assets worth at least $1.6bn, according to a Reuters calculation at the time.
