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The Supreme Court seems divided over Donald Trump’s immunity

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THE PETITIONER in Trump v United States was not present on April 25th when the Supreme Court considered whether he and other ex-presidents should enjoy immunity from criminal liability for their official actions while in office. Rather than being ensconced at One First Street among the Italian marble and red velvet, Donald Trump was seated in a less august courtroom in New York City—where he faces state charges for allegedly covering up hush-money payments to an adult-film star.

A win in Trump v United States would not help him in New York, as those alleged crimes took place on the eve of the 2016 election before he became president. Nor would success at the Supreme Court let him wriggle out of charges in Florida related to classified documents—that alleged mishandling happened after he left office. Yet a dose of immunity would spell the end of the most serious case against Mr Trump: federal charges brought by Jack Smith, the special counsel, that he conspired to overturn the results of the 2020 election.

Two lower courts rejected Mr Trump’s plea for blanket immunity. In February, a three-judge panel at the appeals court wrote that “wholly immunising” presidents who have left office would undercut “the primary constitutional duty of the judicial branch to do justice in criminal prosecutions”. But the nearly three-hour hearing at the Supreme Court—which for long stretches sounded more like a graduate-level seminar on presidential power than a judicial proceeding—made clear that the justices think the legal matter is less than clear.

John Sauer, Mr Trump’s lawyer, warned that a “looming threat” of prosecution after leaving office “will distort the president’s decision-making” and hamstring him while in office. Without blanket immunity, he suggested, Barack Obama could be charged today with murder for errant drone strikes and, down the road, President Joe Biden could be held criminally liable for letting immigrants overrun the border. That’s no way to run an executive branch, Mr Sauer insisted.

But Mr Sauer’s pat plea aroused scepticism across the bench. Chief Justice John Roberts asked whether a president who appoints an ambassador after accepting a bribe could be prosecuted after leaving office. Mr Sauer’s reply—that bribe-taking is outside the scope of official presidential conduct—did not satisfy the chief. “But appointing an ambassador is certainly within the official responsibilities of the president,” he said, demonstrating the difficulty of untangling the act’s two components. This led Justice Sonia Sotomayor to resuscitate a hypothetical scenario from the appeals-court hearing: what about using a Navy SEAL team to assassinate a political rival? When Mr Sauer said that a president could not be held liable for such an “official act”, Justice Sotomayor, with backing from Justice Ketanji Brown Jackson, said America’s founders never envisioned that ex-presidents would be immune from prosecution for criminal acts undertaken for “personal gain”. The constitution’s framers toyed with granting such a cloak to presidents, Justice Sotomayor said, and opted against it.

A pair of questions emerged as the justices’ main concerns. First, which of Mr Trump’s alleged actions count as official (and are thus potentially immunised) and which are private (and thus a legitimate basis for criminal prosecution)? Second, more broadly, which principles should judges use to discern the difference, and through what type of judicial process?

Mr Sauer conceded early on that many of Jack Smith’s allegations against Mr Trump fell in the “private” category. He admitted that spreading knowingly false claims of election fraud and conspiring with a private attorney to file false allegations are both private acts, and therefore prosecutable. By contrast, “meeting with the Department of Justice to deliberate about who’s going to be the acting attorney-general of the United States” is an official act, Mr Sauer said, and should not spur criminal liability.

Justice Elena Kagan also pressed Mr Sauer on how to draw these lines. She was aghast at his claim that Mr Trump was acting officially when he urged legislators in Arizona to hold a hearing on election fraud, and when he worked with Republican Party officials to organise fraudulent slates of presidential electors. And she coaxed Mr Sauer into a corner where he, uncomfortably, conceded that perhaps presidents could not be held liable for spurring coups or sharing nuclear secrets with foreign governments.

Neither these extraordinary admissions nor a meticulous presentation by Michael Dreeben, who argued against Mr Trump’s plea, deterred the conservative justices from standing up for a robust reading of presidential power. Justices Samuel Alito, Neil Gorsuch and Clarence Thomas all seemed to lean heavily in Mr Trump’s direction, even if not towards a grant of absolute immunity. And Justice Brett Kavanaugh advocated an idea—recently floated in conservative legal circles—that only criminal laws with “a clear statement…referencing the president” can limit a president’s conduct. But only two criminal laws fit that bill, Mr Dreeben said, and so, under Justice Kavanaugh’s reading, “the entire corpus of federal criminal law, including bribery offences, sedition, murder, would all be off limits.”

As Justice William Brennan used to say, with “five votes, you can do anything” at the Supreme Court. Four justices seem intent on giving Mr Trump enough of a win that his election-stealing case will be scuttled. (This would happen if delays—stemming from an instruction to the lower courts to sort out which of Mr Trump’s alleged acts count as private—push the trial’s start past the presidential election in November. If he wins, Mr Trump could end the litigation.) Four more, the quartet of women, seem keen to allow the trial to get started, one way or another. Justice Amy Coney Barrett raised the spectre of letting it begin “immediately” and was the only jurist to broach the elephant in the courtroom: Mr Smith’s “concern for speed”.

That makes Chief Justice Roberts, whose sceptical questions for Mr Dreeben balanced his worries about Mr Sauer’s position, the probable deciding vote. The nuances and divisions revealed in the hearing may make speedy resolution of the case difficult. The ruling could come in a matter of weeks—or might not arrive until the end of June.

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Job openings showed surprising increase to 7.4 million in April

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JOLTS beats estimates, posts best number since February

Employers increased job openings more than expected in April while hiring and layoffs also both rose, according to a report Tuesday that showed a relatively steady labor market.

The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey showed available jobs totaled nearly 7.4 million, an increase of 191,000 from March and higher than the 7.1 million consensus forecast by economists surveyed by FactSet. On an annual basis, the level was off 228,000, or about 3%.

The ratio of available jobs to unemployed workers was down close to 1.03 to 1 for the month, close to the March level.

Hiring also increased for the month, rising by 169,000 to 5.6 million, while layoffs fell by 196,000 to 1.79 million.

Quits, an indicator of worker confidence in their ability to find another job, edged lower, falling by 150,000 to 3.2 million.

“The labor market is returning to more normal levels despite the uncertainty within the macro outlook,” wrote Jeffrey Roach, chief economist at LPL Research. “Underlying patterns in hirings and firings suggest the labor market is holding steady.”

In other economic news Tuesday, the Commerce Department reported that new orders for manufactured goods fell more than expected in April. Orders fell 3.7% on the month, more than the 3.3% Dow Jones forecast and indicative of declining demand after swelling 3.4% in March as businesses sought to get ahead of President Donald Trump’s tariffs.

This is breaking news. Please refresh for updates.

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Economics

Euro zone inflation, May 2025

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Shoppers buy fresh vegetables, fruit, and herbs at an outdoor produce market under green-striped canopies in Regensburg, Upper Palatinate, Bavaria, Germany, on April 19, 2025.

Michael Nguyen/NurPhoto via Getty Images

Euro zone inflation fell below the European Central Bank’s 2% target in May, hitting a cooler-than-expected 1.9% as the services print eased sharply, flash data from statistics agency Eurostat showed Tuesday.

Economists polled by Reuters had expected the May reading to come in at 2%, compared to the previous month’s 2.2% figure.

The closely watched services inflation print cooled sharply, amounting to 3.2% last month, compared to the previous 4% reading. So-called core inflation, which excludes energy, food, tobacco and alcohol prices, also eased, falling from 2.7% in April to 2.3% in May.

“May’s steep decline in services inflation, to its lowest level in more than three years, confirms that the previous month’s jump was just an Easter-related blip and that the downward trend in services inflation remains on track,” Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics said in a note.

Inflation has been moving back towards the 2% mark throughout 2025 amid uncertainty for the euro zone economy.

The latest figures will be considered by the European Central Bank as it prepares to make its next interest rate decision later this week. Markets were last pricing in an around 95% chance of interest rates being cut by a further 25-basis-points on Thursday.

Back in April, the central bank took its key rate, the deposit facility rate, to 2.25% — nearly half of the high of 4% notched in the middle of 2023.

But the global economic outlook remains muddied. U.S. President Donald Trump’s protectionist tariff plans have been casting shadows over the global economic outlook, with his so-called “reciprocal” duties — which are also set to affect the European Union — widely seen as harmful to economic growth. Their immediate potential impact on inflation is less clear, with central bank policymakers and analysts noting that it could depend on any potential countermeasures.

Despite the transatlantic tumult, the Organisation for Economic Co-operation and Development in its latest Economic Outlook report out on Tuesday said it was expecting the euro area to expand by 1% in 2025, unchanged from its previous forecast. Euro area inflation is meanwhile projected to come in at 2.2% this year, also in line with the March report.

Euro country bond yields were last lower after the fresh inflation data, with the German 10-year bond yield falling by over two basis points to 2.499%, while the yield on the French 10-year bond was last down by more than one basis point to 3.169%.

The euro was meanwhile last around 0.3% lower against the dollar.

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U.S. growth forecast cut further by OECD as Trump tariffs sour outlook

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Old Navy and Gap retail stores are seen as people walk through Times Square in New York City on April 9, 2025.

Angela Weiss | Afp | Getty Images

Economic growth forecasts for the U.S. and globally were cut further by the Organisation for Economic Co-operation and Development as President Donald Trump’s tariff turmoil weighs on expectations.

The U.S. growth outlook was downwardly revised to just 1.6% this year and 1.5% in 2026. In March, the OECD was still expecting a 2.2% expansion in 2025.

The fallout from Trump’s tariff policy, elevated economic policy uncertainty, a slowdown of net immigration and a smaller federal workforce were cited as reasons for the latest downgrade.

Global growth, meanwhile, is also expected to be lower than previously forecast, with the OECD saying that “the slowdown is concentrated in the United States, Canada and Mexico,” while other economies are projected to see smaller downward revisions.

“Global GDP growth is projected to slow from 3.3% in 2024 to 2.9% this year and in 2026 … on the technical assumption that tariff rates as of mid-May are sustained despite ongoing legal challenges,” the OECD said.

It had previously forecast global growth of 3.1% this year and 3% in 2026.

“The global outlook is becoming increasingly challenging,” the report said. “Substantial increases in barriers to trade, tighter financial conditions, weaker business and consumer confidence and heightened policy uncertainty will all have marked adverse effects on growth prospects if they persist.”

Frequent changes regarding tariffs have continued in recent weeks, leading to uncertainty in global markets and economies. Some of the most recent developments include Trump’s reciprocal, country-specific levies being struck down by the U.S. Court of International Trade, before then being reinstated by an appeals court, as well as Trump saying he would double steel duties to 50%.

The OECD adjusted its inflation forecast, saying “higher trade costs, especially in countries raising tariffs, will also push up inflation, although their impact will be offset partially by weaker commodity prices.”

The impact of tariffs on inflation has been hotly debated, with many central bank policymakers and global analysts suggesting it remains unclear how the levies will impact prices, and that much depends on factors like potential countermeasures.

The OECD’s inflation outlook shows a notable difference between the U.S. and some of the world’s other major economies. For instance, while G20 countries are now expected to record 3.6% inflation in 2025 — down from 3.8% in March’s estimate — the projection for the U.S. has risen to 3.2%, up from a previous 2.8%.

U.S. inflation could even be closing in on 4% toward the end of 2025, the OECD said.

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