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The White House has been fluid on gender for a decade

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ON THE FIRST day of his second term, President Donald Trump signed an executive order titled “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government.” The document marks a sweeping rollback of policies instituted during the Biden administration pertaining to sex, gender identity and transgender rights.

First, the order states that the federal government will henceforth use the traditional, biologically based definitions of terms like “male” and “female”. Then it calls for “gender ideology”, defined as the belief that someone’s subjective “gender identity” can trump their biological sex, to be in effect banished from the federal government: “Agencies shall remove all statements, policies, regulations, forms, communications, or other internal and external messages that promote or otherwise inculcate” this notion, “and shall take all necessary steps, as permitted by law, to end the Federal funding of gender ideology.”

Among other likely consequences of this edict, prisoners in federal custody who were born male are now to be housed in male prisons, regardless of their gender identities, and cut off from access to gender medicine by the order’s ban on federal funding. Transgender folks who have changed the markers on their passports to reflect their gender identities will probably have to change them back the next time they renew. On paper the order brooks few exceptions to its strict approach, describing as “false” the “claim that males can identify as and thus become women and vice versa”.

That being said, executive orders are not laws, and they can be blocked by the courts if they fall foul of existing legislation or the constitution. The most likely result is that some parts of “Defending Women” will be implemented and others held up or fully stymied by court challenges. A spokesperson at GLAD Law, an LGBT civil-rights organisation that plans on challenging the order, noted that every government action “must at a minimum have a valid non-discriminatory purpose and may be subject to a more exacting standard depending on the circumstances”, including “government actions based on animus toward a particular group”. So it is unclear how much power Mr Trump has to draw the boundaries of sex and gender.

However, on the single most important question animating all these issues—how the government defines “sex” in the first place—it is clear that nothing in Mr Trump’s executive order will permanently settle what has become a white-hot dispute.

Title VII of the landmark 1964 Civil Rights Act grants Americans protection from employment discrimination on the basis of a number of different categories, including “sex”. A later amendment, Title IX, outlaws such discrimination in federally funded educational settings. Nowhere in the law, however, is this term actually defined. According to Leor Sapir of the conservative Manhattan Institute, whose doctoral work focused on Title IX, the traditional understanding of sex has generally prevailed in federal civil-rights litigation, though there were cases under Title VII in which courts were open to the possibility that sex could mean or include a person’s self-conception.

That consensus began to crack in around 2010. “During the Obama Administration, the federal bureaucracy tried to rewrite the meaning of ‘sex’ in American civil-rights law through a convoluted administrative and judicial process, in co-operation with a number of federal judges,” Mr Sapir says. In May 2016 the administration published a so-called “Dear Colleague Letter” instructing public educational institutions to “treat a student’s gender identity as the student’s sex” when interpreting Title IX, meaning that if a student said they were a boy or a girl, they should be legally treated as one. This included allowing transgender students access to school facilities corresponding to their gender identity, with an exception for single-sex sports teams. This was one of the executive branch’s more important early attempts to change the definition of “sex” in a manner that would bring transgender people under pre-existing civil-rights protections.

It was short-lived, however. A federal court suspended enforcement of the letter on the grounds that it violated proper administrative procedure. About six few months later the newly inaugurated Trump administration revoked it anyway.  Then in 2021 Joe Biden arrived ready to continue the process President Obama had started. In an executive order on his first day in office—now rescinded by Mr Trump and deleted from the White House’s website—Mr Biden laid out an agenda for protecting trans rights. His administration made a concerted effort, on multiple fronts, to embed a more expansive definition of “sex” in the federal government, but now Mr Trump appears poised to undo as much of it as possible. Even before Mr. Trump’s inauguration, just two weeks before Mr Biden and his team departed, a federal judge in Kentucky struck down their new rules extending Title IX protections to transgender students.

All of this, has led to what Doriane Coleman of Duke University School of Law described as a severe “whiplash” effect, with the government’s understanding of sex swinging wildly back and forth depending on the current administration’s policy preferences and, in some cases, the latest court rulings. While there is a strong possibility this whiplash will continue, there are two relatively straightforward—albeit unlikely—ways for the government to resolve it in a more durable manner.

First, Congress could simply pass a law finally codifying a specific definition of sex. In fact Mr Trump’s order instructs the White House’s legislative office to draft such a bill. That effort faces long odds, however: 60 senators would have to vote for the bill. Here, too, there’s a form of whiplash: in much the same way that Mr Trump’s order is something of a mirror-image of Mr Biden’s, the Democrats took their own shot at codifying their preferred understanding of sex via the Equality Act, which passed the House but could get no further. It would have explicitly defined sex as including gender identity, supplanting the traditional understanding of the term.

A Supreme Court decision could also partially dispel the government’s confusion over sex. According to Mr Sapir, there are about half a dozen cases concerning gender identity that SCOTUS can take up if it so chooses, concerning issues ranging from sports teams to free speech. While it is unlikely any of these cases will lead to a sweeping ruling settling the matter in its entirety, according to Mr Sapir, they could at least provide durable guidance as to how the government should understand sex in certain contexts. But unless and until such a resolution occurs, whether through Congress or the Supreme Court, the game of government fluidity on gender, already almost a decade old, is likely to continue.

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

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Andersen Ross Photography Inc | Digitalvision | Getty Images

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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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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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.

Al Drago | Bloomberg | Getty Images

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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