Ruling overreach of power US federal court prevents Trump's tariff policy from taking effect on April 2

Source: Daily Economic News

### Morning Asian Trading Session: U.S. Stock Futures Extend Gains  

On May 29 during the early Asian trading session, U.S. stock futures saw expanded gains:  
- Nasdaq futures rose **1.72%**  
- S&P 500 futures climbed **1.44%**  
- Dow futures advanced **1.05%**  

**Commodities & Forex:**  
- WTI crude oil rose **0.73%**, peaking at **$62.29/barrel**  
- Spot gold fell **0.79%** to **$3,262.48/oz**  
- The U.S. dollar index gained **0.44%** to **100.334**  
- USD/CHF (Swiss franc) rose **0.4%**, USD/JPY (yen) up **0.4%**  
- Offshore CNY held steady at **7.1967**  

### Key Developments  
**1. U.S. Court Blocks Trump’s Tariff Policy**  
- As reported by CCTV, on **May 28**, a U.S. federal court halted the tariff policy announced by President Trump on **April 2** (dubbed "Liberation Day"), ruling that he **overstepped authority** by imposing blanket tariffs on trade-surplus nations.  
- The **Court of International Trade in Manhattan** stated that the **Constitution grants Congress exclusive power** to regulate trade, and the president’s claimed emergency economic powers **cannot override this**.  
- The lawsuit, filed by the **nonpartisan Liberty Justice Center** on behalf of **five small U.S. businesses**, marks the **first major legal challenge** to Trump’s tariffs.  
- On April 2, Trump signed an order imposing a **10% "baseline tariff"** on trading partners, provoking retaliatory measures globally.  

**2. Fed Meeting Minutes Signal Caution**  
- The **May 6-7 FOMC minutes** revealed unanimous agreement to **keep rates at 4.25%-4.5%**.  
- Policymakers emphasized **data-dependent patience**, citing heightened economic uncertainty and risks of **rising unemployment and inflation**.  
- **Key takeaway**: The Fed is prepared to **adjust policy if needed** but will wait for clearer inflation and growth signals.  
- **NY Fed’s Williams** warned against letting inflation become **"entrenched"**, stressing the need for expectations to **gradually align with targets**.  

### Market Implications  
- **Equities rallied** on the tariff ruling, easing trade war fears.  
- **Gold and the yen dipped** as risk appetite improved.  
- The Fed’s **cautious stance** suggests **no rush to cut rates**, supporting the dollar.  

*Disclaimer: Views are the author’s alone, not investment advice. Accuracy and completeness are not guaranteed. No liability is assumed for losses from reliance on this content.*