Happy Thursday and welcome to your morning wrap of the latest political and business news headlines from around the world.
First up, US Federal Reserve chair Jerome Powell has suggested the central bank could find itself in an ultimatum between controlling inflation and supporting US economic growth, CNBC reported.
The Fed has a dual mandate that requires it to maintain stable prices and full employment.
Speaking at the Economic Club of Chicago, Powell said he expected Trump’s trade tariffs would cause higher inflation and slower growth.
“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension. If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.”
In a question and answer session following his speech, Powell said tariffs were “likely to move us further away from our goals … probably for the balance of this year”.
He gave little away in terms of where rates may go, other than saying the bank was well positioned to wait for greater clarity before considering any adjustments.
Wall Street has dipped in light of the comments, with its main indices down between 1.6% and 3.5%, while bond yields have fallen as investors flock to safety.
To the United Kingdom, where the country’s highest court has unanimously ruled that a woman is defined by biological sex under equalities law, the BBC reported.
The Supreme Court sided with campaign group For Women Scotland, which brought the case against the Scottish government arguing that sex-based protections should only apply to people born female.
The Scottish government argued that transgender people with a gender recognition certificates were entitled to the same protections as biological women, such as hospital wards, prisons, refuges, and support groups.
Judge Lord Hodge said the central question was how the words ‘woman’ and ‘sex’ were defined in the law. “The unanimous decision of this court is that the terms ‘woman’ and ‘sex’ in the Equality Act 2010 refer to a biological woman and biological sex.”
The judges ruled that interpreting sex as ‘certificated’ rather than ‘biological’ would cut across definitions of man and woman.
"But we counsel against reading this judgement as a triumph of one or more groups in our society at the expense of another, it is not," Lord Hoge said. He added that legislation gives trans people protection against discrimination.
Back to the US now, where a district judge has found probable cause exists to hold Trump administration officials in contempt for violating orders in mid-March that prevented the use of the Alien Enemies Act to deport alleged Venezuelan gang members, CNN reports.
The Trump administration has been carrying out a large deportation campaign, which included sending three planes of migrants to a prison in El Salvador. At the same time, Judge James Boasberg held an emergency hearing and told the administration to pause the migrant removals.
The latest decision from Judge Boasberg, who has been repeatedly attacked by Trump and his allies, puts the administration on the path toward being punished for undermining court orders, as he found the government’s actions demonstrated a wilful disregard for the court’s order.
“The Court does not reach such conclusion lightly or hastily; indeed, it has given defendants ample opportunity to rectify or explain their actions,” Boasberg said in his ruling. “None of their responses has been satisfactory.”
US President Donald Trump.
In business news, Chinese online marketplace Temu and fast-fashion retailer Shein will raise prices on their products next week due to Trump’s crackdown on low-value imports and tariffs increasing the expenses for the companies.
Reuters reported the companies had written letters that mirror each other to their customers this week, notifying them of the price increases starting on April 25 and encouraged shoppers to start buying at “today’s rates”.
"Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025," their statements read.
Both businesses have come under pressure after Donald Trump closed a trade loophole that allowed packages worth less than US$800 from China and Hong Kong to enter the United States free from duties.
In Gaza, Hamas has said that any ceasefire deal must include a complete Israeli withdrawal from the enclave, Al Jazeera reported.
But Israel’s Defence Minister, Israel Katz, said that troops will remain in captured areas of Gaza indefinitely and called them “security zones”.
According to the BBC, Katz said the zones would provide a “buffer” to protect Israeli communities and that “tens of percent” of the Palestinian territory had been added since the Israeli offensive resumed three weeks ago.
Finally, determined burglars in the United States have made off with at least US$10m worth of jewellery after tunnelling through a concrete wall to gain access to Los Angeles store.
The heist took place on Broadway in the heart of downtown LA on Sunday, The Guardian reported.
Security footage showed the suspects entered the store from a large hole they drilled from the property next door, LA Police Department officer David Cuellar said.
An unknown number of suspects fled through the same hole and drove off in a late model Chevrolet truck.
