The U.S. Supreme Court will expedite the review of the Trump tariff case, economic data under pressure drives interest rate cut expectations, and U.S. stocks hit new highs

According to Zhitong Finance APP, the U.S. Supreme Court announced on Tuesday that it will expedite the hearing of a significant case concerning the Trump administration's tariff policy, a ruling that will directly impact the core economic measures implemented by Trump during his second term. The case focuses on whether Trump has the authority to unilaterally impose tariffs on foreign imports under the emergency powers statute without congressional approval.

The case involves two types of tariffs established by Trump. One type is "reciprocal tariffs" aimed at specific countries, while the other is an additional 25% tariff imposed by Trump on countries like Canada and Mexico for failing to effectively curb the flow of fentanyl into the U.S. Meanwhile, tariffs of up to 50% on global steel and aluminum products are not included in this hearing.

Previously, the U.S. Court of Appeals for the Federal Circuit ruled on August 29 that the global tariffs implemented by Trump under the International Emergency Economic Powers Act exceeded presidential authority, as the law does not grant the president the power to set indefinite global tariffs. The Constitution explicitly states that the power to set tariffs belongs to Congress. Subsequently, the Trump administration filed an appeal. The Supreme Court will hold oral arguments in the first week of November and will make a ruling thereafter. During the case's proceedings, the relevant tariffs will continue to be enforced.

Trump's camp holds a 6-3 conservative advantage in the Supreme Court, which has previously supported Trump's policies. However, legal experts believe the court may take a more cautious approach regarding the president's expansion of authority to impose global tariffs. In recent years, the Supreme Court has invoked the "major questions doctrine" to strike down the Biden administration's broad expansion of executive power in areas such as student loan forgiveness, adding uncertainty to Trump's case.

On the market front, the latest revised data from the U.S. shows that as of March this year, the number of new jobs added in the U.S. was revised down by 910,000 compared to previous data, indicating that the U.S. job market was already showing signs of slowing before Trump introduced the global tariff policy. This weakened employment performance has strengthened expectations for a rate cut by the Federal Reserve. The CME FedWatch tool indicates that the market has fully priced in a 25 basis point rate cut at next week's Federal Reserve meeting, with nearly a 10% probability betting on a one-time 50 basis point cut.

U.S. Treasury Secretary Janet Yellen publicly called for the Federal Reserve to adjust its policy stance, stating that "when the facts change, policy must change accordingly." Yellen pointed out that the latest revised data proves that the economic situation when Trump took office was worse than initially reported, and that the Federal Reserve is "stifling economic growth" with high interest rates. She expressed confidence that the new Federal Reserve governor nominated by Trump, Philip Jefferson, would be able to vote in time, and hinted that the governor currently embroiled in legal disputes, Cook, should not participate in the interest rate meeting on September 16-17.

Boosted by the downward revision of employment data and expectations for a rate cut, U.S. stocks reached new highs on Tuesday. Year-to-date, the S&P 500 has risen approximately 11%, while the Nasdaq has increased by 13%.

Investors are closely monitoring the upcoming Producer Price Index and Consumer Price Index, which will serve as important indicators for assessing the impact of Trump's tariff policy on inflation and whether the Federal Reserve will take more aggressive rate cuts. Analysts believe that the Supreme Court's ruling on the tariff case and the Federal Reserve's policy decision next week will be key variables for global financial markets in the coming months