Taiwan central bank says US debt rising too fast may impact trust in Treasuries
[TAIPEI] Taiwan's central bank governor warned on Saturday (Jun 21) that rapidly rising US debt could be 'unfavourable' to the outlook for US Treasuries and that US President Donald Trump's trade policies have made investors cautious.
Taiwan's US$593 billion in foreign exchange reserves are more than 80 per cent made up of US Treasury bonds, according to the central bank, which said earlier this month that Treasuries were 'sound' and still favoured by investors. It added that there were no worries about the US dollar's position as the leading international reserve currency.
Governor Yang Chin-long, in a speech posted on the central bank's website, said Trump's repeated criticisms of the US Federal Reserve's monetary policy have caused concerns about its independence.
'In addition, Trump 2.0's trade policy has made investors hesitant about holding US Treasury bonds; Trump's budget, the 'One Big Beautiful Bill Act,' may cause US debt to expand too quickly, which is unfavourable to the outlook for US sovereign debt,' he said.
'All of these have had a significant impact on the international monetary system centred on the US dollar and based on US creditworthiness.'
Trump's sweeping tax-cut and spending bill is the centrepiece of his domestic agenda.
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The bill would lead to a larger-than-expected US$2.8 trillion increase in the federal deficit over the decade, despite a boost to US economic output, the nonpartisan Congressional Budget Office projected on Tuesday.
Trump, in his first few weeks in office, also announced sweeping tariffs on a broad swathe of countries and trading partners, including Taiwan, only to pause them for 90 days in April to allow for talks to take place.
Yang said Trump had been hoping the tariffs could resolve the US trade deficit.
'However, the tariff policy not only fails to solve the structural problems, it will also impact the US economy, and threaten to further affect the outlook for global trade and the economy.' REUTERS
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Straits Times
an hour ago
- Straits Times
Two days of terror: How the Minnesota shooter evaded police and got caught
FILE PHOTO: A handout photo posted by the Ramsey County Sheriff's Office appears to show Vance Luther Boelter, 57, the suspected gunman in the shooting deaths of a Minnesota Democratic state lawmaker and her husband, in custody, at an unidentified location, released June 15, 2025. Ramsey County Sheriff's Office via Facebook/Handout via REUTERS/File Photo Two days of terror: How the Minnesota shooter evaded police and got caught NEW HOPE, Minnesota - Vance Boelter's disguise wasn't perfect. The silicone mask was somewhat loose-fitting and his SUV's license plate simply read "POLICE" in black letters. But it was good enough on a poorly lit suburban street in the dead of night. At 2:36 a.m. on Saturday, 30 minutes after authorities say Boelter shot and seriously injured Minnesota State Senator John Hoffman and his wife, he paused behind the wheel of the SUV near the home of another senator, Ann Rest, in the city of New Hope. The SUV was stocked with weapons, including AK-47 assault rifles, as well as fliers advertising a local anti-Trump rally scheduled for later Saturday and a written list of names of people he appeared to be targeting. Senator Rest, prosecutors would later say, was among those Boelter set out to kill on June 14. As Boelter sat in the SUV down the street from Rest's home, another police car - this one an actual police car - approached. A female officer from the New Hope police department, after hearing about the Hoffman shootings, had come out to check on Rest. Seeing the SUV, complete with flashing lights and police-style decals, she believed the man inside was a fellow officer. But when she attempted to speak to him - one officer greeting another - she got no response. Instead, the man inside the SUV with police markings simply stared ahead. The New Hope officer drove on, deciding to go ahead and check on Rest. Rest would later say the New Hope officer's initiative probably saved her life, an opinion shared by New Hope Police Chief Timothy Hoyt. "With limited information, she went up there on her own to check on the welfare of our senator," Hoyt told Reuters. "She did the right thing." The brief interaction in New Hope underscored the carefully planned nature of Boelter's pre-dawn rampage and how his impersonation of a police officer, including body armor, a badge and a tactical vest, confounded the initial attempts to stop him. After the encounter with the New Hope officer, Boelter, 57, drove away from the scene, moving on to his next target. Police would pursue him for another 43 hours. In the process, they would draw in a phalanx of state and federal agencies, in what ranks as the largest manhunt in Minnesota history and added to the sense of disorientation in a nation already grappling with protests over immigration, the forcible removal of a U.S. Senator from a press conference and a rare military parade in Washington. Federal prosecutors say they may seek the death penalty for Boelter, who has been charged with murdering two people and trying to kill two others, in what Governor Tim Walz has called a "politically motivated" attack. Prosecutors said they are still investigating the motive and whether any others were involved. Boelter has yet to enter a plea. Manny Atwal, a public defender representing Boelter, said he was reviewing the case and declined to comment. This reconstruction of the manhunt is based on court documents, statements by law enforcement officials, and interviews with a Boelter friend, local police officers, lawmakers, and residents of the impacted neighborhoods. While the events unfolded like something out of a TV crime drama, there were parallels with past shooting sprees, criminal justice experts said. James Fitzgerald, a former FBI criminal profiler, said he would not be surprised if Boelter studied a mass shooting in Canada in 2020, when a gunman posing as a police officer killed 22 people in the province of Nova Scotia. "These guys always do research beforehand. They want to see how other killers were successful, how they got caught," said Fitzgerald, who helped the FBI capture the "Unabomber" Ted Kaczynski in 1996. "And, of course, a way you're going to buy yourself some time is to pose as a police officer." HOFFMAN SHOOTING The violence began at the Hoffman's brick split-level home in Champlin, a leafy, middle-class suburb of Minneapolis. With his emergency lights flashing, Boelter pulled into the driveway just after 2:00 a.m. and knocked on the door. "This is the police. Open the door," Boelter shouted repeatedly, according to an FBI affidavit. Senator Hoffman and his wife, Yvette, soon determined Boelter was not a real police officer. Boelter shot Senator Hoffman nine times, and then fired on Yvette, who shielded her daughter from being hit. As Boelter fled the scene, the daughter called 911. The Hoffmans were on a target list of more than 45 federal and state elected officials in Minnesota, all Democrats, acting U.S. Attorney Joseph H. Thompson told a briefing on Monday. Boelter voted for President Donald Trump, was a Christian and did not like abortion, according to his part-time roommate, David Carlson. Carlson said Boelter did not seem angry about politics. Thompson said Boelter "stalked his victims like prey" but that the writings he left behind did not point to a coherent motive. "His crimes are the stuff of nightmares," he said. "His crimes are the stuff of nightmares," Thompson said. After the Hoffman's, the next address plugged into Boelter's GPS system was a lawmaker about 9 miles away in the Minneapolis suburb of Maple Grove. Surveillance cameras from the home of State Representative Kristin Bahner show a masked Boelter ringing the doorbell at 2:24 a.m. and shouting "Open the door. This is the police. We have a warrant," the FBI affidavit says. Bahner and her family were not at home. From there, Boelter moved on to New Hope and the close encounter with the officer who had dispatched to Rest's home. After that, he wasn't seen by police again until he arrived at the residence of Melissa Hortman, the top Democrat in the state House, in Brooklyn Park. Sensing that Hortman might be a target, Brooklyn Park police officers had decided to check on her. When they arrived at 3:30 a.m. they saw a black Ford Explorer outside her house, its police-style lights flashing. Boelter was near the front door. When Boelter saw the officers exit their squad car, he fired at them. He then ran through the front door on the house, where he killed Melissa and Mark Hortman, her husband. 'DAD WENT TO WAR' When Boelter left the Hortman's home, he abandoned his fake-police SUV. Inside the car, police found a 9mm handgun, three AK-47 assault rifles, fliers advertising a local anti-Trump "No Kings" rally and a notebook with names of people who appear to have been targets, according to court documents. From that point, Boelter was on the run. Little has been revealed about his movements during the period, although police say he visited his part-time residence in north Minneapolis. He also sent texts. In one, to his family's group chat, Boelter writes, "Dad went to war last night". In another, to a close friend, Boelter says he may be dead soon. Police also know that by early morning on Saturday Boelter had met a man at a Minneapolis bus stop who agreed to sell him an e-bike and a Buick sedan for $900. The two drove to a bank where Boelter withdrew $2,200 from his account. A security camera shows Boelter wearing a cowboy hat. But it took until 10:00 a.m. on Sunday for authorities to close in. Police searching the area near Boelter's family home in the rural community of Green Isle, discovered the abandoned Buick, along with a cowboy hat and handwritten letter to the FBI in which Boelter admitted to the shootings, prosecutors said. Law enforcement scrambled to set up a perimeter surrounding the area, SWAT teams and search dogs were deployed, and drones were put in the air. It was the trail camera of a resident, however, that provided the final clue, capturing an image of Boelter around 7:00 p.m., allowing officers to narrow their search. Two hours later, the pursuit ended with Boelter crawling to police. He was armed but surrendered without a fight. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
2 hours ago
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Pakistan to nominate Trump for Nobel Peace Prize
FILE PHOTO: U.S. President Donald Trump talks to reporters upon his arrival at Morristown Municipal Airport in Morristown, New Jersey, U.S., June 20, 2025. REUTERS/Ken Cedeno/File Photo ISLAMABAD - Pakistan said on Saturday it would recommend U.S. President Donald Trump for the Nobel Peace Prize, an accolade that he has said he craves, for his work in helping to resolve the recent conflict between India and Pakistan. Some analysts in Pakistan said the move might persuade Trump to think again about potentially joining Israel in striking Iran's nuclear facilities. Pakistan has condemned Israel's action as a violation of international law and a threat to regional stability. In May, a surprise announcement by Trump of a ceasefire brought an abrupt end to a four-day conflict between nuclear-armed foes India and Pakistan. Trump has since repeatedly said that he averted a nuclear war, saved millions of lives, and grumbled that he got no credit for it. Pakistan agrees that U.S. diplomatic intervention ended the fighting, but India says it was a bilateral agreement between the two militaries. "President Trump demonstrated great strategic foresight and stellar statesmanship through robust diplomatic engagement with both Islamabad and New Delhi, which de-escalated a rapidly deteriorating situation," Pakistan said. "This intervention stands as a testament to his role as a genuine peacemaker." Governments can nominate people for the Nobel Peace Prize. There was no immediate response from Washington. A spokesperson for the Indian government did not respond to a request for comment. Trump has repeatedly said that he's willing to mediate between India and Pakistan over the disputed Kashmir region, their main source of enmity. Islamabad, which has long called for international attention to Kashmir, is delighted. But his stance has upended U.S. policy in South Asia, which had favored India as a counterweight to China, and put in question previously close relations between Trump and Indian Prime Minister Narendra Modi. In a social media post on Friday, Trump gave a long list of conflicts he said he had resolved, including India and Pakistan and the Abraham accords in his first term between Israel and some Muslim-majority countries. He added: "I won't get a Nobel Peace Prize no matter what I do." Pakistan's move to nominate Trump came in the same week its army chief, Field Marshal Asim Munir, met the U.S. leader for lunch. It was the first time that a Pakistani military leader had been invited to the White House when a civilian government was in place in Islamabad. Trump's planned meeting with Modi at the G7 summit in Canada last week did not take place after the U.S. president left early, but the two later spoke by phone, in which Modi said "India does not and will never accept mediation" in its dispute with Pakistan, according to the Indian government. Mushahid Hussain, a former chair of the Senate Defence Committee in Pakistan's parliament, suggested nominating Trump for the peace prize was justified. "Trump is good for Pakistan," he said. "If this panders to Trump's ego, so be it. All the European leaders have been sucking up to him big time." But the move was not universally applauded in Pakistan, where Trump's support for Israel's war in Gaza has inflamed passions. "Israel's sugar daddy in Gaza and cheerleader of its attacks on Iran isn't a candidate for any prize," said Talat Hussain, a prominent Pakistani television political talk show host, in a post on X. 'And what if he starts to kiss Modi on both cheeks again after a few months?" REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
International Business Times
3 hours ago
- International Business Times
Wall Street Shows Mixed Signals as S&P 500 Down 0.21%, Dow Gains 38 Points as Middle East Tensions Escalate
U.S. stock markets finished Friday with mixed results as traders continued to grapple with new geopolitical uncertainty in the Middle East and further cycles in oil and currency markets. The Dow Jones Industrial Average added 38.47 points, or 0.1%, to end at 42,210.13. The S&P 500, on the other hand, slipped 0.21%, while the Nasdaq Composite sank more deeply by 0.49%. Investor sentiment took on a cautious tone as President Donald Trump postponed taking military action in the wake of recent flare-ups in the Israel-Iran conflict. Markets began the day on a positive note, but worries about what could unfold over the weekend contributed to choppy trades and late-session declines. Energy prices also signaled the market's unease. Brent crude dropped 2.3 percent to $77.01 a barrel, but it was still up 3.6 percent for the week. U.S. crude futures settled at $74.93, down 0.28%, but still up 2.7% for the week, despite a holiday-thinned session on Thursday. "People are holding back from major moves ahead of the weekend. There's still a lot of risk tied to how the situation unfolds," said Rick Meckler of Cherry Lane Investments. Diplomatic Moves and Geopolitical Risks: The United States forged ahead with targeted sanctions on enterprises tied to Iran's defense industry, a diplomatic strategy from the White House. But analysts warn that with Israel and Iran continuing to trade hostilities, any miscalculation would see the crisis ratchet higher and put vital oil infrastructure at risk. "There's always a chance of an unintended spark in these kinds of conflicts," said John Evans, an analyst at PVM Oil Associates. European officials called on Tehran to resume negotiations over its nuclear ambitions after a high-level meeting in Geneva ended without progress. European stock markets closed slightly higher, buoyed by optimism from earlier Asian trading sessions. The MSCI World Index was down slightly by 0.01%, while gains in Hong Kong and Seoul helped balance out losses in the other Asian markets. Fed Talk Spotlights Policy The Gap: Federal Reserve officials spoke publicly for the first time since comments by the Fed's chair, Jerome H. Powell, on Wednesday, indicating that the central bank is likely to cut interest rates this year. But he cautioned that inflation, particularly from Trump's trade tariffs, is a risk. A divide among policymakers is also now visible. Governor Christopher Waller insisted to open the door to a rate cut as soon as the next meeting, and Richmond Fed President Tom Barkin countered that there's no rush to move. Powell, for his part, warned against putting too much stock in forecasts in such a dynamic environment. Waller's dovish take sent bond markets into motion. The yield on the benchmark 10-year Treasuries fell 2 basis points to 4.375%. Strong safe-haven demand, which has been soaring in recent weeks because of global tensions, was another factor contributing to the fall. Currency and Commodity Price Movements The dollar was stronger, reaching a three-week high against the yen. A gauge of the dollar against major currencies inched 0.03% higher on the day and 0.6% for the week. The euro was 0.3% firmer at $1.1528. Gold prices were down 0.13% at $3,365.91, set for a weekly decline despite some strength earlier in the week as a safe haven asset.
