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Donald Trump returns to New York for a bombastic closing pitch

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More than five hours after his rally at Madison Square Garden began, Donald Trump walked slowly on stage. The arena was filled from floor to rafters with some 20,000 supporters, bathed in red and blue light. They had listened and cheered, bought hot dogs and taken selfies as more than two dozen others spoke. A comedian called Puerto Rico a “floating island of garbage”; Elon Musk awkwardly urged early voting and happily lapped up chants of “Elon!” But the main draw was, of course, Mr Trump himself, speaking at the famous arena in America’s biggest city, in the final days of what may be his final campaign. When Mr Trump appeared, at last, the crowd roared. He basked.

The Economist’s forecast model shows Mr Trump edging ahead of Kamala Harris, his Democratic rival. With just over one week until election day, some politicians might moderate their message. Mr Trump offered instead theatrics and defiance.

Whether that is a good thing depends on whom you ask. For the rally Mr Trump enlisted a childhood friend who wielded a crucifix while calling Ms Harris the Antichrist, as well as Stephen Miller, the designer of his first term’s immigration policy, who declared that “America is for Americans only.” Tucker Carlson, a television host, seemed to feed nuggets to conspiracy theorists, explaining that America’s leadership class hates Trump supporters so much that it “wants to replace them”. Mr Trump himself performed his customary dance of the underdog, casting himself as the besieged hero who would unleash “the four greatest years in the history of the USA.”

New York would seem an odd site for this spectacle. Contrary to the claims of the Garden’s megatron, New York is not Trump country, nor even close to being a swing state. But its discontented Republicans are a growing force, particularly in its suburbs. Arber Gjokaj, 19, grew up as a Democrat but plans to vote for Mr Trump. “He inspired me,” he says, and likes the former president’s authenticity. Jacqueline Guillen, a lawyer, worries about the city’s crime and the outsourcing of white-collar jobs.

As important, for Mr Trump’s purposes, New York is America’s biggest stage, his hometown, the city he loves and the centre of phenomena he loves to hate. New York’s surge of migrants allowed him and his surrogates to lambast Ms Harris about the border. Alina Habba, one of Mr Trump’s lawyers, danced on stage in a glittering MAGA jacket to decry New York’s supposedly unfair prosecutions of Mr Trump, the only so far that have yielded criminal convictions. Vying with prosecutors for MAGA-world’s least popular New Yorkers are its media—“a bunch of assholes”, according to one supporter. Mr Trump decried the fake news, as is his wont, and supporters turned toward the press section to jeer with glee.

But Mr Trump is trying to bend the city’s hostile forces into a friendlier form. His attempts to intimidate the media have become more belligerent, with threats to rescind licences from national television networks, including CBS and ABC. Even if he cannot do that, technically, his broader threats against the press seem to be having an effect. Last week the big papers in two other cities, the Washington Post and Los Angeles Times, announced they would not endorse presidential candidates, decisions directed by each publication’s owner.

As for his convictions in New York, Mr Trump has appealed against them and his supporters don’t seem to care anyway. “I’d rather support a felon than a jackass”, read one T-shirt. Mr Trump spoke to the arena for more than an hour. The next week will bring a frenzy of further campaigning. In the Garden he was home, adored and triumphant. 

Economics

Protests against a regal presidency have been notably peaceful

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There is no need to send in the troops

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Economics

Gavin Newsom is ready for his close-up

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NORMALLY, GAVIN NEWSOM is loose. The Democratic governor of California talks with a staccato cadence, often flitting from one incomplete thought to the next. When he talks to journalists or asks a guest on his podcast a meandering question, he tends to use a lot of meaningless filler words: “in the context of” is a frequent Newsomism. But on June 10th he was clear and direct. “This brazen abuse of power by a sitting president inflamed a combustible situation,” he said during a televised address after President Donald Trump deployed nearly 5,000 troops to Los Angeles to quell protests over immigration raids. “We do not want our streets militarised by our own armed forces. Not in LA. Not in California. Not anywhere.”

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Economics

Consumer sentiment reading rebounds to much higher level than expected as people get over tariff shock

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A woman shops at a supermarket on April 30, 2025 in Arlington, Virginia.

Sha Hanting | China News Service | Getty Images

Consumers in the early part of June took a considerably less pessimistic about the economy and potential surges in inflation as progress appeared possible in the global trade war, according to a University of Michigan survey Friday.

The university’s closely watched Surveys of Consumers showed across-the-board rebounds from previously dour readings, while respondents also sharply cut back their outlook for near-term inflation.

For the headline index of consumer sentiment, the gauge was at 60.5, well ahead of the Dow Jones estimate for 54 and a 15.9% increase from a month ago. The current conditions index jumped 8.1%, while the future expectations measure soared 21.9%.

The moves coincided with a softening in the heated rhetoric that has surrounded President Donald Trump’s tariffs. After releasing his April 2 “liberation day” announcement, Trump has eased off the threats and instituted a 90-day negotiation period that appears to be showing progress, particularly with top trade rival China.

“Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed,” survey director Joanne Hsu said in a statement. “However, consumers still perceive wide-ranging downside risks to the economy.”

To be sure, all of the sentiment indexes were still considerably below their year-ago readings as consumers worry about what impact the tariffs will have on prices, along with a host of other geopolitical concerns.

On inflation, the one-year outlook tumbled from levels not seen since 1981.

The one-year estimate slid to 5.1%, a 1.5 percentage point drop, while the five-year view edged lower to 4.1%, a 0.1 percentage point decrease.

“Consumers’ fears about the potential impact of tariffs on future inflation have softened somewhat in June,” Hsu said. “Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that trade policy may still contribute to an increase in inflation in the year ahead.”

The Michigan survey, which will be updated at the end of the month, had been an outlier on inflation fears, with other sentiment and market indicators showing the outlook was fairly contained despite the tariff tensions. Earlier this week, the Federal Reserve of New York reported that the one-year view had fallen to 3.2% in May, a 0.4 percentage point drop from the prior month.

At the same time, the Bureau of Labor Statistics this week reported that both producer and consumer prices increase just 0.1% on a monthly basis, pointing toward little upward pressure from the duties. Economists still largely expect the tariffs to show impact in the coming months.

The soft inflation numbers have led Trump and other White House officials to demand the Fed start lowering interest rates again. The central bank is slated to meet next week, with market expectations strongly pointing to no cuts until September.

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