U.S. Stock Futures Flat as Markets Digest Trump Tariff Delay and Await Fed Minutes
Investors paused to weigh the impact of President Trump’s latest tariff announcements—most notably on copper—and the Federal Reserve’s forthcoming minutes before making any decisive market moves. While Dow futures held steady and both S&P 500 and Nasdaq 100 futures edged down by 0.1%, traders found relief in the White House’s decision to defer new tariffs until August 1, tempering immediate downside risks. With today’s muted U.S. stock futures reflecting cautious sentiment, all eyes now turn to the Fed minutes for fresh insights into interest‑rate policy, inflation outlooks, and the central bank’s assessment of economic growth—factors that will ultimately guide the next wave of market direction.
President Trump confirmed at Tuesday’s cabinet meeting that the August 1 tariff deadline is “not 100% firm” but will not be pushed back further, even as he continues negotiations with the EU and China. He also warned of a potential 50% levy on imported copper—a critical input for electric vehicles, military hardware, and power–grid infrastructure—and hinted at additional tariffs on pharmaceuticals and semiconductors. Treasury Secretary Scott Bessent noted that these measures have already generated $100 billion in revenue this year, with projections reaching $300 billion by year‑end, funds that could help offset the cost of Trump’s recently enacted multi‑trillion‑dollar tax‑cut and spending package.
Investors are now focused on the Federal Reserve’s June meeting minutes, searching for clues on the trajectory of interest‑rate policy as U.S. borrowing costs remain at the 4.25%–4.50% range. Policymakers endorsed a “wait‑and‑see” stance to allow the full impact of Trump’s tariffs to materialize, a position underscored by Chair Jerome Powell’s recent remarks that, absent trade uncertainty, rate cuts might have already begun. Market participants continue to price in two rate reductions by year‑end—potentially kicking off in September and again in December—yet the outlook is clouded by renewed political pressure from President Trump, who has publicly criticized Powell and urged his resignation in favor of a more dovish Fed leader.
Kevin Hassett, a longtime White House economic adviser, has emerged as a “serious contender” to succeed Jerome Powell as Federal Reserve Chair, according to a Wall Street Journal report. Hassett, who has built a close rapport with President Trump, reportedly met with him at least twice in June to discuss the role—positioning him ahead of former Fed governor Kevin Warsh in the president’s shortlist. If tapped, Hassett’s appointment could signal a sharper shift toward looser monetary policy, aligning the Fed more closely with the White House’s growth‑focused agenda.
