The Morning Sixpack - April 22, 2025

IMF cuts outlook on global growth, blames Trump Tariffs, FDA suspends milk testing, Schiff demands probe into Trump admin's use of Signal, and Harvard continues the fight against Trump cutting funds.

IMF Slashes Global Growth Forecasts Amid Record US Tariffs, Warns of Lingering Trade Tensions

The International Monetary Fund (IMF) has significantly revised down its growth projections for 2025 and 2026, citing the far-reaching effects of the United States' aggressive tariff policies, which have reached their highest levels in a century.

The IMF now forecasts global growth of just 2.8% in 2025, down from its earlier prediction of 3.3%. The report suggests that escalating trade tensions, especially involving the U.S., could continue to dampen global economic activity, with a particular impact on the U.S., China, and Europe. IMF chief economist Pierre-Olivier Gourinchas highlighted the profound uncertainty surrounding global trade, signaling that the international economic system is undergoing a major transformation.

The U.S. faces a substantial economic slowdown, with the IMF downgrading its growth forecast for 2025 to 1.8%—a significant drop from 2.8% in 2024.

Inflation in the U.S. is also projected to remain higher than anticipated, largely due to the tariff-driven increase in goods and services costs. The IMF also cautioned that these trade disputes are likely to exacerbate financial market volatility and further disrupt the global trading system, urging clarity and predictability to restore some semblance of stability.

Trade growth, particularly with China and the Euro Area, is expected to slow considerably, with the IMF cutting its forecast for global trade growth by 1.5 percentage points. The IMF's report underscores the severity of the shifting economic landscape, warning that without significant structural reforms, medium-term global growth prospects remain weak.

Source: Reuters

But I thought Trump was going to bring inflation down to zero and skyrocket GDP growth! Say it ain’t so, MAGAmen!!!

Schiff Demands Investigation into Trump Officials' Use of Signal for Sensitive Communications

California Senator Adam Schiff has called on the National Archives to investigate the Trump administration's use of encrypted messaging app Signal to discuss sensitive national security matters.

Schiff's request comes after reports revealed that Defense Secretary Pete Hegseth shared classified information about military strikes in Yemen on a Signal chat that included his family members. Schiff's concern is that these communications may have violated federal laws requiring the preservation of government records.

In his letter to the National Archives, Schiff emphasized the reckless manner in which these communications were handled, suggesting that senior officials may have widely used apps like Signal to discuss other classified matters. He also urged a broader review of how Trump administration officials utilized messaging platforms and whether proper policies were in place to ensure the preservation of records.

This development adds to the ongoing scrutiny of the Trump administration's handling of sensitive information, with concerns about the potential for these apps to circumvent federal record-keeping requirements. Schiff’s push for an independent investigation stands in contrast to the lack of oversight from the Republican-controlled Congress, which has shown little interest in addressing the issue.

Source: The New York Times

It IS illegal to destroy federal government communication records. Just sayin’.

Harvard Sues Trump Administration Over $2.3 Billion Funding Freeze

Harvard University has filed a lawsuit to block the Trump administration’s move to freeze $2.3 billion in federal funding, which the university claims is a violation of its First Amendment rights.

The suit, filed in federal court in Boston, argues that the Trump administration is using funding cuts as leverage to control academic decision-making at the institution. Harvard alleges that these actions, linked to the administration’s demands for a mask ban and an end to diversity and inclusion programs, are arbitrary and unlawful.

The Trump administration's freeze on Harvard’s funding is part of a broader crackdown on major U.S. universities over their handling of pro-Palestinian protests and claims of antisemitism on campuses. The administration has also paused funding to other top universities like Columbia and Princeton. Harvard's lawsuit marks the first university to challenge these actions, with the institution vowing to continue fighting hate while adhering to civil rights laws.

Harvard's president, Alan Garber, stated that the government is attempting to control academic hiring and teaching instead of focusing on addressing antisemitism as required by law. The university's lawsuit names several federal agencies, including Health and Human Services, Energy, and Education.

Source: Reuters

Trump still mad about his little boy being turned down by Harvard.

Cleveland-Cliffs Lays Off Over 1,200 Workers Amid Tariff Impact on Steel Demand

Cleveland-Cliffs is laying off more than 1,200 workers as the ongoing impact of steel tariffs reduces demand, particularly in the automotive sector.

The company announced it would idle operations at its Dearborn, Michigan plant, resulting in 600 job cuts due to falling automotive demand.

Additionally, 630 layoffs will occur as operations are paused at two iron ore mines in Minnesota. Cleveland-Cliffs stated that these measures would help the company remain competitive in the current market environment and that steel production at the Dearborn plant could resume once President Trump's policies are fully implemented and automotive production returns to the U.S.

This move comes as North American steelmakers continue to struggle under the weight of tariffs imposed by the Trump administration. Cleveland-Cliffs and other major steelmakers have expressed support for these tariffs, despite the strain they put on their operations.

The company has been vocal about pushing for the tariffs to remain in place without exemptions, as it tries to navigate a challenging market with lower anticipated demand and production volumes.

Despite the layoffs, Cleveland-Cliffs' support for the tariffs mirrors that of competitors like Nucor, even as both companies face financial setbacks. Cleveland-Cliffs reported a dramatic 71% year-over-year drop in Q1 earnings.

Source: Yahoo Finance

These dummies just want outright protectionism, but Trump isn’t even smart enough to implement those shitty policies. He just shits on ALL countries and industries, even his own.

Trump Targets Federal Reserve Over Economic Concerns, Threatens Powell’s Job

President Trump is setting the stage to blame the Federal Reserve for any economic downturn, particularly if the economy falters due to his ongoing trade war.

In a social media post, Trump demanded that the Fed cut interest rates immediately, claiming there is "virtually no inflation."

He accused Fed Chair Jerome Powell of being “Mr. Too Late” and criticized him for not cutting rates to support his second-term agenda, despite Powell's historical efforts to maintain the Fed's independence from political pressures.

Trump’s attacks reflect his longstanding belief that the central bank should align more closely with presidential objectives. He also alleged that Powell's rate cuts before the 2024 election were politically motivated to benefit President Biden, furthering his narrative that the Fed is politicized. Despite these claims, Powell has consistently defended the Fed's apolitical stance, stating that decisions are made based on data, not political considerations.

This latest volley against the Fed is seen by some analysts as an attempt to scapegoat the central bank for looming economic challenges, including potential recession. As Trump continues to push for lower rates, his critics warn that undermining the Fed could damage its credibility and the broader economy.

Source: The Wall Street Journal

Powell should cut rates by a full one percent (or more) and then quit and ask Trump, “Are you happy now?!!!” and watch in glee as inflation skyrockets and the global economy falters and Trump gets ALL the blame.

After all, Trump deserves it.

FDA Suspends Milk Quality Testing Amid Workforce Reductions

The U.S. Food and Drug Administration (FDA) has suspended its quality control program for testing fluid milk and other dairy products due to staffing cuts in its food safety and nutrition division.

This suspension is a result of broader workforce reductions at the Department of Health and Human Services (HHS), which has seen 20,000 jobs cut as part of President Trump's Musk’s effort to reduce the federal workforce.

The FDA also halted testing programs for bird flu in milk and cheese and pathogens like Cyclospora in other food products.

The suspension includes the FDA’s proficiency testing program for Grade "A" raw milk, which meets the highest sanitary standards. The program’s pause means that laboratories nationwide will temporarily lose a critical tool for ensuring consistency and accuracy in food safety testing. The FDA, however, has assured that dairy product testing will continue, and alternative approaches for testing will be considered for the upcoming fiscal year.

The decision to suspend the proficiency testing program follows a broader trend of reductions in government services, with a proposed $40 billion budget cut for the FDA. As the agency transitions to a new laboratory, the FDA has committed to keeping participating laboratories informed.

Source: Reuters

Read that last line again: The FDA has committed to keeping participating laboratories informed.

Now, isn’t that nice? Can you see the foreshadowing here? Bird flu will be our next pandemic. All because we stopped testing fucking MILK.