Overview

• Fed Chair Jerome Powell warns that US tariffs are driving inflation and slowing growth, prompting the Federal Reserve to prioritize inflation control over economic expansion.
• Roughly 35% of German companies plan job cuts in 2025, with export-reliant industries particularly affected by the trade disruptions caused by US tariffs.
• German municipalities anticipate significant declines in Gewerbesteuer tax revenues, leading to potential cuts in infrastructure investments amid an existing funding backlog.
• US consumer sentiment has plunged to 50.8 points, reflecting growing fears of unemployment and the economic impact of the administration's trade policies.
• German SPD leadership debates policy shifts, including potential tax increases and raising the minimum wage to €15 by 2026, as part of broader party renewal efforts.