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Do undocumented immigrants have the right to own guns?

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The night of June 1st 2020 was a chaotic one in Chicago. A week earlier, George Floyd had been murdered by a Minneapolis police officer, and protests against police brutality had spread all over the world. A day before, the then mayor, Lori Lightfoot, had requested help from the National Guard for the first time since the riots of 1968. Such was the situation when Heriberto Carbajal-Flores, a then-28-year-old carpenter, borrowed a gun and joined a group of men defending a tyre shop in Little Village, a Mexican neighbourhood, from would-be looters. At around 11pm, in full view of a camera, Mr Carbajal-Flores shot seven times in the direction of a white car that was speeding past. Forty minutes later, he was arrested.

So far, just another story of madness on that hot summer night. But Mr Carbajal-Flores’s rather reckless defence of property may yet change America. In early March the last of the charges originally filed against him was dismissed by a federal judge in Chicago. Mr Carbajal-Flores, a Mexican citizen who arrived illegally in America as a child, was accused of breaking the federal law which bans undocumented immigrants (as well as foreigners on temporary visas) from owning guns. The judge, Sharon Johnson Coleman, ruled that, as applied to him, the law was unconstitutional. Citing cases of former British loyalists in the revolutionary war who were allowed guns, she argued that Mr Carbajal-Flores was entitled to an “individualised assessment” about whether he had a right to own a gun; and in his case, he did.

In effect, Ms Coleman ruled that some undocumented immigrants are allowed to have guns. Though it will almost certainly be appealed, the ruling has already set off a storm among Republicans. Marco Rubio, a Republican senator from Florida, wondered if the ruling was “being done to sort of mock both gun laws and also the whole…understanding of the value of being a citizen of the United States”. It shows how one conservative priority, the right to gun ownership with few restrictions, may be about to crash into another: a strong dislike of undocumented migrants.

A generation ago the idea that a Mexican illegally in America could have a constitutional right to carry a gun would have been considered absurd. Yet the question has arisen thanks to conservative rulings at the Supreme Court that have widened the scope of the Second Amendment, which gives Americans the right to bear arms.

First, in 2008 there was District of Columbia v Heller, which ruled that a ban on handguns in the nation’s capital was unconstitutional. Then, in 2022, came New York State Rifle & Pistol Association Inc. v Bruen, which ruled that requiring individuals to show “proper cause” to get a concealed-carry permit was also unconstitutional, along with any gun-control law lacking an analogue in 1791. Now the Second Amendment is, in the words of Justice Clarence Thomas, no longer “a second-class right” to be given at the discretion of officials. Rather, it is comparable to, say, the First Amendment, which protects freedom of speech and religion.

Yet the constitution says that the right to bear arms is held by “the people”, and not merely by citizens. Mr Carbajal-Flores’s lawyers argue that their client is a member of “the people” by virtue of his ties to the United States. Though he entered America illegally, he is eligible for protection from deportation under daca, an executive order signed into effect by Barack Obama. The weekend after he was arrested he got married to his longtime girlfriend, who is an American citizen. His children are citizens. They also argue that his specific use of a weapon, to deter looters, was exactly the sort of behaviour that many conservatives admire. Mr Carbajal-Flores says he was instructed by the police to go armed, and the shots he fired were warning shots. “Our client is a legitimate hero,” says Ross Cassingham, one of Mr Carbajal-Flores’s lawyers. “He’s the proverbial good guy with a gun.”

At appeal the government’s lawyers are likely to say otherwise. In their response to the defence’s first motion to dismiss, they noted that Mr Carbajal-Flores armed himself before he even spoke to the police and suggested his gunfire was not obviously intended only to warn, so he was not acting in legitimate self-defence. They also argued that the law banning undocumented migrants from owning guns is constitutional, on the basis that the Heller decision still allowed the government to restrict classes of people from owning firearms. And they contended that restrictions on non-citizens are legitimate, on the basis that people who have already broken the law in moving to the country cannot be trusted with firearms. That argument was initially accepted.

But that came before Bruen, which in effect established a test that gun laws must be in line with the laws of the early republic. Hence Judge Coleman’s consideration of how British loyalists were treated after the revolutionary war. In the late 18th century, notes Adam Winkler, of the University of California, Los Angeles, School of Law, the concept of illegal immigration hardly existed, and so “the people” included everybody inside the United States. “It is clear that undocumented immigrants have a right to free speech and free religion,” says Mr Winkler. “So for purposes of consistency, one would imagine they would have Second Amendment rights.”

What happens next? Another case in the Supreme Court will soon decide whether domestic abusers under restraining orders can be restricted from owning guns; that may give some hints as to how the Carbajal-Flores case could be resolved. A final decision could have big implications. At the moment, for example, the state of Illinois requires anyone who wants a gun to apply for a licence, and bans foreigners without green cards from applying. If upheld, this ruling could force the state to consider almost anyone. Hence the outrage of people like Mr Rubio.

Yet as Mr Winkler notes, there is an irony to the backlash. Conservatives usually argue that gun-control laws do not stop criminals from buying guns anyway. But then conservatives have not always been so keen on widespread gun rights—at least when people they dislike start exercising them. In 1967 California banned the carrying of loaded guns, in an attempt to disarm the rifle-carrying Black Panther Party. The governor who signed the law was none other than Ronald Reagan. Views on guns can change, even among Republicans.

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Economics

The low-end consumer is about to feel the pinch as Trump restarts student loan collections

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Wall Street is warning that the U.S. Department of Education’s crack down on student loan repayments may take billions of dollars out of consumers’ pockets and hit low income Americans particularly hard.

The department has restarted collections on defaulted student loans under President Donald Trump this month. For first time in around five years, borrowers who haven’t kept up with their bills could see their wages taken or face other punishments.

Using a range of interest rates and lengths of repayment plans, JPMorgan estimated that disposable personal income could be collectively cut by between $3.1 billion and $8.5 billion every month due to collections, according to Murat Tasci, senior U.S. economist at the bank and a Cleveland Federal Reserve alum.

If that all surfaced in one quarter, collections on defaulted and seriously delinquent loans alone would slash between 0.7% and 1.8% from disposable personal income year-over-year, he said.

This policy change may strain consumers who are already stressed out by Trump’s tariff plan and high prices from years of runaway inflation. These factors can help explain why closely followed consumer sentiment data compiled by the University of Michigan has been hitting some of its lowest levels in its seven-decade history in the past two months.

“You have a number of these pressure points rising,” said Jeffrey Roach, chief economist at LPL Financial. “Perhaps in aggregate, it’s enough to quash some of these spending numbers.”

Bank of America said this push to collect could particularly weigh on groups that are on more precarious financial footing. “We believe resumption of student loan payments will have knock-on effects on broader consumer finances, most especially for the subprime consumer segment,” Bank of America analyst Mihir Bhatia wrote to clients.

Economic impact

Student loans account for just 9% of all outstanding consumer debt, according to Bank of America. But when excluding mortgages, that share shoots up to 30%.

Total outstanding student loan debt sat at $1.6 trillion at the end of March, an increase of half a trillion dollars in the last decade.

The New York Fed estimates that nearly one of every four borrowers required to make payments are currently behind. When the federal government began reporting loans as delinquent in the first quarter of this year, the share of debt holders in this boat jumped up to 8% from around 0.5% in the prior three-month period.

To be sure, delinquency is not the same thing as default. Delinquency refers to any loan with a past-due payment, while defaulting is more specific and tied to not making a delayed payment with a period of time set by the provider. The latter is considered more serious and carries consequences such as wage garnishment. If seriously delinquent borrowers also defaulted, JPMorgan projected that almost 25% of all student loans would be in the latter category.

JPMorgan’s Tasci pointed out that not all borrowers have wages or Social Security earnings to take, which can mitigate the firm’s total estimates. Some borrowers may resume payments with collections beginning, though Tasci noted that would likely also eat into discretionary spending.

Trump’s promise to reduce taxes on overtime and tips, if successful, could also help erase some effects of wage garnishment on poorer Americans.

Still, the expected hit to discretionary income is worrisome as Wall Street wonders if the economy can skirt a recession. Much hope has been placed on the ability of consumers to keep spending even if higher tariffs push product prices higher or if the labor market weakens.

LPL’s Roach sees this as less of an issue. He said the postpandemic economy has largely been propped up by high-income earners, who have done the bulk of the spending. This means the tide-change for student loan holders may not hurt the macroeconomic picture too much, he said.

“It’s hard to say if there’s a consensus view on this yet,” Roach said. “But I would say the student loan story is not as important as perhaps some of the other stories, just because those who hold student loans are not necessarily the drivers of the overall economy.”

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Economics

Consumer sentiment falls in May as Americans’ inflation expectations jump after tariffs

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A woman walks in an aisle of a Walmart supermarket in Houston, Texas, on May 15, 2025.

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U.S. consumers are becoming increasingly worried that tariffs will lead to higher inflation, according to a University of Michigan survey released Friday.

The index of consumer sentiment dropped to 50.8, down from 52.2 in April, in the preliminary reading for May. That is the second-lowest reading on record, behind June 2022.

The outlook for price changes also moved in the wrong direction. Year-ahead inflation expectations rose to 7.3% from 6.5% last month, while long-term inflation expectations ticked up to 4.6% from 4.4%.

However, the majority of the survey was completed before the U.S. and China announced a 90-day pause on most tariffs between the two countries. The trade situation appears to be a key factor weighing on consumer sentiment.

“Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April; uncertainty over trade policy continues to dominate consumers’ thinking about the economy,” Surveys of Consumers director Joanne Hsu said in the release.

Inflation expectations are closely watched by investors and policymakers. Federal Reserve Chair Jerome Powell has said the central bank wants to make sure long-term inflation expectations do not rise because of tariffs before resuming rate cuts.

A final consumer sentiment index for the month is slated to be released on May 30, and will likely be closely watched to see if the tariff pause led to an improvement in sentiment.

This is breaking news. Please refresh for updates.

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Economics

JPMorgan Chase CEO Jamie Dimon says recession is still on the table for U.S.

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Jamie Dimon, chief executive officer of JPMorgan Chase & Co., speaks during the 2025 National Retirement Summit in Washington, DC, US, on Wednesday, March 12, 2025.

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Wall Street titan Jamie Dimon said Thursday that a recession is still a serious possibility for the United States, even after the recent rollback of tariffs on China.

“If there’s a recession, I don’t know how big it will be or how long it will last. Hopefully we’ll avoid it, but I wouldn’t take it off the table at this point,” the JPMorgan Chase CEO said in an interview with Bloomberg Television.

Specifically, Dimon said he would defer to his bank’s economists, who put recession odds at close to a toss-up. Michael Feroli, the firm’s chief U.S. economist, said in a note to clients on Tuesday that the recession outlook is “still elevated, but now below 50%.”

Dimon’s comments come less than a week after the U.S. and China announced that they were sharply reducing tariffs on one another for 90 days. The U.S. has also implemented a 90-day pause for many tariffs on other nations.

Thursday’s comments mark a change for Dimon, who said last month before the China truce that a recession was likely.

He also said there is still “uncertainty” on the tariff front but the pauses are a positive for the economy and market.

“I think the right thing to do is to back off some of that stuff and engage in conversation,” Dimon said.

However, even with the tariff pauses, the import taxes on goods entering the United States are now sharply higher than they were last year and could cause economic damage, according to Dimon.

“Even at this level, you see people holding back on investment and thinking through what they want to do,” Dimon said.

— CNBC’s Michael Bloom contributed reporting.

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