Trump says may allow lawsuit against Fed chair over renovations
Trump has repeatedly lashed out at Powell this year over the Fed's decisions to keep interest rates steady since its last cut in December. Policymakers have been cautiously monitoring the effects of Trump's wide-ranging tariffs on the world's biggest economy, as they mulled the right time to lower rates further. This is because it takes time for levies to filter through to consumer prices. The jury is still out on whether Trump's latest tariffs will have a one-off or longer-term impact on inflation, but the president has regularly pointed to benign data to urge for rate reductions to boost the economy.
Shortly after government data was released Tuesday, showing that consumer inflation stayed unchanged at 2.7% in July, Trump wrote on social media that Powell "must now lower the rate." He also called the Fed's leadership "complacent."
Trump has openly floated the idea of ousting Powell over cost overruns for the renovation. While the US leader says the price of the makeover was $3.1 billion, reiterating this figure in his social media post on Tuesday, Powell has been quick to correct Trump in the past. The cost has been put at $2.5 billion, but Trump's higher number includes work on another building that Powell maintains was completed previously. On Tuesday, Trump said Powell was doing a "horrible" job in managing the Fed's revamp.
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Fashion Network
an hour ago
- Fashion Network
Trump tariffs a stone in the shoe of 'made in USA' cowboy boots
The manufacture of iconic "made in the USA" cowboy boots is set to suffer from President Donald Trump 's 30% tariffs on South African exports that came into force in August. Texas's most renowned makers of the southern US fashion staple source the ostrich leather they require exclusively from the small South African town of Oudtshoorn, 400 kilometres (250 miles) east of Cape Town. Known as the world's "ostrich capital", Oudtshoorn is nestled in the semi-arid Little Karoo valley just inland from the southern coast and is home to a few hundred thousand people and about as many of the giant flightless birds. "We just don't know how bad the impact will be, but positive it wouldn't be," said ostrich farmer Laubscher Coetzee of the tariffs that kicked in after South Africa appeared unable to negotiate a new trade deal with Trump. More than half of the global supply of ostrich-derived products -- from feathers to leather and meat -- comes from nearly 200 farmers around Oudtshoorn who are joined in the Cape Karoo International (CKI) group, said its managing director Francois de Wet. South Africa as a whole supplies about 70% of the world's production, he said. Luxury handbag manufacturers in France and Italy are among the CKI's main clients. It also ships 20% of its ostrich leather to top Texas bootmakers such as Lucchese, Justin and Rios of Mercedes, whose boots are sold at several hundreds of dollars a pair. Ostrich is "an extremely important leather in our industry", Ryan Vaughan, CEO of the Rios of Mercedes manufacturer, told AFP. "It's very resilient, it forms to the foot," he said, wearing a typical cowboy hat. Coming from "a long line of cattle ranchers", his family brand was born in Texas in 1853 and employs 250 people. The tariffs "would make a dramatic impact in our business and in the western industry," he said, "because it's not just us that build a lot of cowboy boots out of ostrich leather". It is also the case of Tony Lama, an El Paso bootmaker supplied by CKI that has given a pair to every recent Republican president. Donald Trump received cowboy boots emblazoned with "MAGA" made out of "American alligator" skin, according to a press release. De Wet from the CKI said he believed the South African supply of ostrich leather to the US manufacturers did not run counter to a push by the Trump administration for production to be brought home. The United States did not have enough ostriches to provide the required leather, he said. "We export the raw material, the ostrich leather. They can't produce it from local ostriches in the US. They don't have them," he told AFP. "They do all the value-adding in the United States," he said. "So therefore, in terms of the pure definition of what the Trump administration would like to see, in this case, we do it already." The soft skins, recognisable by spots left by the large ostrich feathers, are currently sold to American manufacturers for around $20 a square foot. "We exported more than the usual volume of ostrich leather to the US in the past two-three months, so we have a little bit of a buffer," said de Wet. "For the moment we don't expect any layoffs in the short term," he said. But "in the long term, if we have to pick up the full tariff, it will definitely... cause a shrinkage of our business." The consumer could also not be expected to pay an extra 30% for the already pricey boots, he said. "So the tariff will have to be split between the exporter... and the importer, and preferably also a part paid by the end consumer." It is the unique climate of the Little Karoo, which gets less than 400 millimetres (nearly 16 inches) of rain a year, that makes it ideal for ostrich rearing, said Coetzee, a fourth-generation Oudtshoorn farmer. "That is the reason the ostrich industry is still here 200 years after (it started)," he said. His great-grandfather built the family home in 1896, when the price of ostrich feathers rivalled that of gold because of their value to the women's fashion industry. The extravagant "ostrich palaces" of the time are a reminder of the industry's previous major crisis, when the market collapsed in the early 1900s as the arrival of the low-roofed motor car ended the fashion for high-feathered hats. Copyright © 2025 AFP. All rights reserved. All information displayed in this section (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the contents of this section without the prior written consent of Agence France-Presses.
Fashion Network
an hour ago
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Why Swatch is facing tough times
The Swatch brand is credited with having saved a Swiss watch industry that had been laid low by the so-called quartz revolution. Back in the 1970s and 1980s, these less expensive and more accurate watches from an ascendant Japan upended European mechanical watchmaking. Swatch's response? Tap into the '80s zeitgeist with colourful, low-priced designs—funky, artistic, eclectic and made for collectors along with a whole new demographic that saw them as fashion, not function. Swatch used its skyrocketing revenue to support its more staid, traditional brands while acquiring new ones. But fast forward to today, and the market's changed: phones and smartwatches have undercut low-cost watches, leaving luxury as the main engine for growth. And a new set of problems, from low sales in China to Donald Trump 's tariffs, have made matters even worse. The luxury spending slowdown in China has hurt all brands, but Swatch got hit more than most, given that 27% of its 2024 sales were attributable to the Asian nation. While the company said last month that sales data now show a possible turnaround, any recovery in China is expected to be slow. Meanwhile, Trump's radical imposition of a 39% tariff on imports from Switzerland puts high-end watch brands in a corner, since they can't raise prices much more in the current environment. Simultaneously, investors have been calling out Swatch, urging it to capitalise on the still-lucrative high-end segment. Steven Wood, founder and chief investment officer of New York-based GreenWood Investors, even mounted a campaign to win a seat on Swatch's board. He was defeated, but his intervention may underline the frustration among investors worried about the company's future. The Hayek family, which controls more than 40% of Swatch voting rights, has pushed back by saying it shouldn't just be making watches for the wealthy. To be sure, Swatch managed some mainstream success as recently as 2022, with the MoonSwatch. The quartz-driven timepiece leaned on the heritage and look of the Omega Speedmaster Moonwatch, an iconic watch worn on Apollo moon missions. Swatch sold more than a million of them that year, but it's struggled to generate the same sort of buzz across the rest of the group.
LeMonde
2 hours ago
- LeMonde
Trump and Putin: A toxic and opaque relationship
"Putin went through a hell of a lot with me." In late February, Donald Trump made remarks to the press that conveyed a sense of compassion, shared adventure, and acknowledgment of wrongs suffered. His words echoed the persistent allegations of collusion between the billionaire and the Kremlin that have intensified since Trump entered politics a decade ago, reinforcing the presumption of a mysterious closeness as the two men prepare to meet in Alaska on Friday, August 15, to negotiate Ukraine's fate behind the back of the victim of Russia's military aggression, as many Europeans fear. Trump's penchant for strongmen, especially those with authoritarian tendencies, has long been known, as has his rejection of democratic and liberal proselytizing. In the case of Vladimir Putin, their relationship is both longstanding and distant, lacking the personal chemistry that united Ronald Reagan and Mikhail Gorbachev in the late 1980s. It is also opaque: not even the number of phone calls between the two men since the November 2024 US presidential election is known. In 2013, Trump was a television star and billionaire who cultivated his image as a successful playboy. He traveled to Moscow for the Miss Universe pageant, for which he and the NBC television network owned the rights. At the time, Trump dreamed of meeting Putin and having him appear on the show. He had long nurtured a major real estate project: constructing a Trump Tower in the Russian capital. The idea for this project first came to him during his first visit to the Soviet Union in 1987.
