Foreign
Sales of US existing homes slip slightly in August
By Francesca Hangeior
Sales of previously owned US homes fell in August, according to industry data released Thursday, but lower mortgage rates and growing supply were likely to boost the industry.
Existing home sales dropped 2.5 percent last month from July to an annual rate of 3.86 million, seasonally adjusted, said the National Association of Realtors (NAR).
This was largely in line with the 3.90 million consensus that analysts expected.
“Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,” said NAR chief economist Lawrence Yun.
Homebuyers in the United States have been grappling with a sharp rise in mortgage rates after the US central bank rapidly lifted the benchmark lending rate in 2022 to tackle inflation.
But with growing expectations that the Federal Reserve was going to pivot to rate cuts after holding rates at a decades-high level for months, mortgage rates have also shifted lower.
The popular 30-year fixed-rate mortgage averaged 6.2 percent as of September 12, according to mortgage finance firm Freddie Mac — reaching the lowest level since February 2023.
A year ago, the rate was around 7.2 percent.
On Wednesday, the Fed kicked off a process of easing monetary policy with a bold half-percentage-point rate reduction, adding to expectations that mortgage rates would fall further.
“Existing home sales fell to a 10-month low in August, but forward looking indicators like mortgage applications point to a pickup in sales in September and October,” said economist Nancy Vanden Houten of Oxford Economics.
But Oliver Allen of Pantheon Macroeconomics cautioned that a mortgage rate of six percent remains “well above the average rate of about four percent on the stock of existing mortgages.”
“So moving home and taking out a new mortgage still requires a prohibitive jump in monthly payments for most current homeowners,” he said in a note.
“As such, a constrained supply of existing homes for sale will continue to hold back sales,” Allen added.
Compared with a year ago, NAR data showed that existing home sales were 4.2 percent down in August.
The median price increased 3.1 percent from August 2023 to $416,700, with all four US regions seeing price jumps.
Yun told a media call on Thursday that although home sales are struggling, home prices remained high.
Foreign
Trump fires Fagan, first woman to lead US military service
President Donald Trump has removed Admiral Linda Fagan, the first woman to lead a United States military service, as the head of the Coast Guard.
The Department of Homeland Security, which oversees the Coast Guard, did not immediately comment on Fagan’s dismissal, AFP reports.
The sack came less than 24 hours after the inauguration ceremony of the 47th US President at the Capitol, on Monday.
“She served a long and illustrious career, and I thank her for her service,” acting DHS Secretary Benjamine Huffman said in a message Tuesday to the Coast Guard.
Fox News cited a senior official saying reasons for her removal included her failure to address border security threats, excessive focus on diversity, equity and inclusion, and an “erosion of trust” over the Coast Guard’s investigation into sexual assault cases.
Another official cited alleged “leadership deficiencies.”
A senior official from the DHS was far more critical, saying Fagan was dismissed “because of her leadership deficiencies, operational failures, and inability to advance the strategic objectives of the US Coast Guard.”
“The admiral failed to address border security threats, mismanaged acquisitions, including helicopters, and put ‘excessive focus’ on diversity, equity and inclusion programmes,” the official said on condition of anonymity.
Trump and other Republicans have long railed against government programmes aimed at fostering diversity.
Also, border security is a key priority for Trump’s administration, as he declared a national emergency at the US frontier with Mexico on Monday, the first day of his new term of office.
Pete Hegseth, Trump’s yet-unconfirmed nominee to head the Defense Department, said last week that senior officers “will be reviewed based on meritocracy, standards, lethality and commitment to lawful orders,” indicating that further dismissals are possible.
Fagan had led the Coast Guard since 2022, and previously held posts including vice commandant of the service.
“She served on all seven continents, from the snows of Ross Island, Antarctica to the heart of Africa, from Tokyo to Geneva, and in many ports along the way,” an archived version of her biography, which is no longer available on the Coast Guard website, revealed.
Foreign
Photos: Melania Trump shines in elegant outfit as netizens compare looks with Michael Jackson
Where in the world is Melania Trump? Back in Washington in a sharply tailored outfit that exudes international woman of mystery as her husband once again becomes president of the United States.
Wearing a long navy coat and matching wide-brimmed hat — which shielded her eyes in most photos and hindered her commander-in-chief husband’s attempts to give her a peck before his swearing-in — Melania’s fit drew snark on social media and a flurry of comparisons to a 1980s video game character.
“Where in the world is Carmen Sandiego?” quipped the internet, referring to the franchise that spun off into a popular 1990s geography game show for kids, and featured a criminal mastermind dressed in a long, carmine trench coat and eye-obscuring fedora.
Melania Trump’s coat and skirt were silk wool Adam Lippes, an independent American designer based in New York, an ensemble paired with an ivory blouse tightly wrapped at the Slovenian-born former model’s neck.
“The tradition of the presidential inauguration embodies the beauty of American democracy and today we had the honor to dress our first lady, Mrs. Melania Trump,” said Lippes in a statement that emphasized American manufacturing over political ideology.
“Mrs. Trump’s outfit was created by some of America’s finest craftsmen and I take great pride in showing such work to the world.”
The hat was by New York milliner Eric Javits.
“She cut the figure of a mafia widow or high-ranking member of an obscure religious order, and a bit of ‘My Fair Lady,’ wrote Rachel Tashjian, style critic for The Washington Post.
– ‘Armor’ –
American first ladies don’t get much of a voice — but their sartorial choices are broadcast to the world and scrutinized for subtext and statements.
The late Rosalynn Carter, for example, drew strong reactions by wearing a dress she had already worn — gasp! — when her husband Jimmy was inaugurated in 1977.
The point was to show empathy for the economic struggles of Americans — but sometimes what the people really want is aspirational glamour.
In recent years first ladies have routinely turned to independent designers for inaugural events: in 2021, Jill Biden wore a sparkling blue coat-and-dress combo by Markarian, a small brand in New York.
Michelle Obama made waves in 2009 in a lemon-colored outfit by Isabel Toledo, wearing Thom Browne at her husband’s second swearing-in. She wore gowns by Jason Wu to both series of inaugural balls.
Melania Trump, for her part, channeled Jackie Kennedy to kick off her first turn in the White House, wearing Ralph Lauren — a heritage-brand favorite on both sides of the political aisle — to the daytime events in 2017.
She swapped her powder-blue cashmere dress and matching asymmetrical bolero jacket with opera gloves for a silk crepe gown by Herve Pierre that year, both looks that signaled a sense of buoyancy as she began her new role as a political wife.
Her shadowy-chic 2025 look marks a sharp departure as she enters tenure two.
“For her second round as first lady, the fashion game — the tool she brandishes most often and most forcefully, even if the public sometimes struggles to divine her sartorial messages — is likely to be one of steely, precise armor, of clothes with brash and exacting tailoring,” wrote the Post’s Tashjian.
“For the past year, she has worn a wardrobe of mostly black, but this does not seem intended to make her disappear into the background.”
Michael Jackson comparison on social media
Melania’s latest outfit has sparked a flurry of reactions online, quickly going viral across social media platforms.
While some praised her bold fashion choice, others couldn’t resist drawing comparisons to the late Michael Jackson.
One X user humorously remarked, “Is it just me… or is Melania trying to imply that Trump is a ‘smooth criminal’ with this outfit choice?”
Echoing a similar sentiment, another user chimed in: “Melania is dressed like Michael Jackson, and she is killing it! Smooth criminal but more classy lol.”
Foreign
Trump vows to ‘tariff and tax’ foreign countries
US President Donald Trump waits to speak in Emancipation Hall during inauguration ceremonies at the US Capitol in Washington, DC, on January 20, 2025. (Photo by Greg Nash / POOL / AFP)
S President Donald Trump promised tariffs and taxes on other countries Monday, in a nationalistic inaugural address after being sworn in as the 47th president.
“I will immediately begin the overhaul of our trade system to protect American workers and families,” he said at the US Capitol.
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump added.
Since his election victory in November, Trump has taken aim at allies and adversaries alike, raising the prospect of fresh levies to push other countries towards tougher action on US concerns.
Before his White House return, Trump vowed to impose 25 percent tariffs on Canadian and Mexican imports, and an additional 10 percent on Chinese goods, if they did not do more about illegal immigration and the flow of fentanyl into the United States.
On the campaign trail, Trump also floated the idea of much steeper tariff rates — 60 percent or more — on Chinese imports.
But he stopped short Monday of unveiling new tariffs, which are applied on imported goods when a US buyer purchases them from abroad.
– ‘America First Trade Policy’ –
The White House said Monday that under the Trump administration, all agencies would adopt “emergency measures to reduce the cost of living.”
It added that Trump would unveil his “America First Trade Policy,” stressing also that Washington would not be beholden to foreign organizations for its tax policy.
In his speech Monday, Trump reiterated his plan to set up an “External Revenue Service” to collect tariffs, duties and revenues, promising “massive amounts of money” pouring in from foreign sources.
The name is a play on the Internal Revenue Service, a bureau under the Treasury Department that administers and enforces US tax laws.
“The American dream will soon be back and thriving like never before,” he said.
Some analysts have warned that tariff hikes would bring higher consumer prices and weigh on GDP growth over time.
But Trump’s supporters have pointed to his other policy proposals like tax cuts and deregulation as a means to spur growth.
Trump’s Treasury secretary nominee Scott Bessent told lawmakers last Thursday that he disagreed the cost of tariffs would be borne domestically.
On Monday, Trump also said his government would establish a new “Department of Government Efficiency.”
The office dubbed DOGE, to be led by Elon Musk and businessman Vivek Ramaswamy, is eyeing some $1 trillion in cuts to federal spending.
While DOGE has an advisory role, Musk’s star power and strong influence in Trump’s inner circle bring political clout.
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