TRANSCRIPT
The International Monetary Fund says the United States and global economies will likely slow significantly in the wake of President Donald Trump's tariffs and the uncertainty they have created.
It predicts the global economy will grow just 2.8 per cent this year, down from its forecast in January of 3.3 per cent, according to its latest World Economic Outlook.
The Fund sees the world's two largest economies, China and the United States, weakening.
IMF chief economist, Pierre-Olivier Gourinchas says the impact will be global.
“The surge in policy uncertainty is a major driver of the economic outlook. If sustained, the increase in trade tensions and uncertainty will slow global growth significantly. The global economy needs a clear, stable and predictable trading environment, one that addresses some of the longstanding gaps in international trading rules.”
Treasury Secretary Scott Bessent says the ongoing tariffs showdown against China is unsustainable and he expects a "de-escalation" in the trade war between the world's two largest economies.
Mr Trump has also again flagged a reduction in tariffs on Chinese imports without offering a specific figure.
The IMF doesn't expect a U-S recession, though it has raised its odds of one this year from 25 per cent to about 40 per cent.
The assessment comes at the same time Donald Trump has been placing pressure on the U-S Federal Reserve Chairman Jerome Powell.
Trump ramped up his criticism of Federal Reserve chief Jerome on Tuesday calling him a "major loser "and demanding he cut rates "NOW" or risk an economic slowdown.
The Federal Reserve, after a series of rate cuts late last year, has left its benchmark policy rate on hold in the range of 4.25 per cent to 4.50 per cent since December.
President Donald Trump says has no plans to sack Jerome Powell but says he wants interest rates to be lower.
“None whatsoever. Never did. The press runs away with things. No, I have no intention of firing him (Federal Reserve Chair Jerome Powell). I would like to see him be a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates. If he doesn't, is it the end? No, it's not. But it would be good timing. It would be. It could have taken place earlier. But no, I have no intention to fire him.”
Two U-S judges have extended temporary blocks on some deportations of Venezuelan migrants from the United States.
Denver-based U-S District Judge Charlotte Sweeney is signalling that President Trump's invocation of a 1798 law historically used in wartime to speed up their removal from the United States - may not survive judicial review.
She wrote in a ruling that Trump's administration must give Venezuelan migrants detained in Colorado notice 21 days in advance before any deportations under the Alien Enemies Act.
On March 15, it invoked the 1798 law to deport hundreds of men accused of being members of a Venezuelan gang to a prison in El Salvador.
Mr Trump says he is entitled to deport people without trial that he says have links to the Tren de Aragua criminal gang in Venezuela.
"We are getting some very bad people, killers, murderers, drug dealers, really bad people. The mentally ill, the mentally insane. They emptied out insane asylums into our country. We're getting them out. And a judge can't say, 'no, you have to have a trial. The trial is going to take two years.' And, no, we're going to have very dangerous country if we're not allowed to do what we're entitled to do. And I won an election based on the fact that we get them out."
Secretary of State Marco Rubio has unveiled a massive overhaul of the State Department with plans to reduce staff in the U-S by 15 per cent while closing and consolidating more than 100 bureaus worldwide.
It was not immediately clear whether U-S embassies were included in the installations slated for closure and if the reorganisation would be implemented through an executive order or other means.
Earlier reports of embassy closures, especially in Africa, triggered warnings about shrinking the U-S diplomatic capacity and influence abroad.
Tammy Bruce from the State Department says it’s about improving the nation's diplomatic mission in a new global era.
"We are facing tremendous challenges across the globe. To deliver on President Trump's America First foreign policy, we must make the State Department great again. In its current form, the Department is bloated, bureaucratic, and unable to perform its essential diplomatic mission in this new era of great power competition."
AAP is reporting that some of the bureaus expected to be cut include the undersecretary of state for civilian security, democracy and human rights, and the Office of Global Women's Issues.
The proposed changes at the State Department follow cuts to funding and staff across some other federal agencies, including the Education Department and Health and Human Services.
Democrats have criticised the changes brought in by the Trump administration.
In a speech in San Francisco, Former Vice President Al Gore says Mr Trump is seeking power at all costs.
"We've already seen, by the way, how popular authoritarian leaders have used migrants as scapegoats and have fanned the fires of xenophobia to fuel their own rise to power and power seeking is what this is all about. Our Constitution, written by our founders, is intended to protect us against a threat identical to Donald Trump, someone who seeks power at all costs to get more power."
In global politics, retired Lieutenant General Keith Kellogg, will represent Washington in peace discussions with Ukrainian and European officials this week.
He is President Donald Trump’s envoy for Ukraine and Russia.
Ukrainian, British, French and U-S officials are meeting in London this week to discuss the war.
