Hello Capitalists,

Trump goes after Powell for not dropping rates after the weak jobs report, Huckabee Sanders refuses to bend the knee to CVS, steel and aluminum tariffs go live, Iran rejects the US nuke proposal, companies are finding ways to juice their value with Bitcoin, ranchers have bold plans for Americas’s national beef herd and California has a railway with no rails.

Let’s break it down for you:

• The Top Line Market Numbers:

• DOW: 42503.40 (⬇️0.04) 

• S&P: 5971.66 (⬆️0.02)

• NASDAQ: 19425.15 (⬆️0.14)

Trump frustrated with Jerome Powell demands rate cuts after striking jobs growth report

President Donald Trump strongly urged Federal Reserve Chairman Jerome Powell to lower interest rates, Wednesday, after ADP reported very low monthly private-sector job growth.

• Weak Jobs Data Sparks Concern: The ADP jobs report showed just 37,000 new private-sector jobs in May 2025, the lowest since March 2023, missing expectations of 110,000 and down from 60,000 in April, signaling a slowing labor market.

• Trump’s Fiery Response: President Trump slammed Federal Reserve Chair Jerome Powell, calling him “Too Late” and demanding immediate interest rate cuts to boost the economy, citing the weak ADP numbers.

  

• Powell Stands Firm: Just minutes ago Powell responded saying "In support of our goals, today the Federal Open Market Committee decided to leave our policy interest rate unchanged."

• Economic Context: The ADP report comes ahead of the Bureau of Labor Statistics’ nonfarm payrolls data, expected to show 125,000 jobs added in May, offering a broader view of the economy amid tariff-related uncertainties.

• Global Comparison: Trump pointed to the European Central Bank’s likely rate cut as evidence the U.S. is lagging, arguing it puts America at an economic disadvantage.

Quote of the Day:

Sarah Huckabee Sanders refuses to bow to CVS threats

Arkansas Governor Sarah Huckabee Sanders is refusing to back down to threats from CVS to exit her state over a new law targeting drug middlemen driving up costs for patients.

• Sanders Not Backing Dow: Sanders is standing firm against CVS's threat to close all 23 of its state pharmacies over a new law targeting pharmacy benefit managers (PBMs). Sanders accused CVS of prioritizing profits over patient care, saying they "would rather own the PBM than keep their pharmacy open" and that other pharmacies are ready to fill the gap if CVS leaves.

• The first-in-the-nation Arkansas law, effective January 2026, bans PBMs from holding prescription drug sales permits in the state. Sanders argues that the "Big Three" PBMs control 80% of the pharmaceutical market and are "over-inflating prices" while driving small independent pharmacies out of business by paying them lowball rates.

• More States To Follow: The Arkansas law is part of a growing national movement, with Louisiana, New York, Texas and other states considering similar legislation, plus President Trump signing an executive order targeting PBMs. Sanders says this bipartisan issue aims to lower drug prices and help rural communities maintain access to local pharmacies that are being squeezed out by PBM consolidation.

Trump's tariffs on foreign metal imports go live, ramps up from 25% to 50%

President Trump’s new 50% tariffs on imported steel and aluminum just kicked in, and things are getting volatile.

• Tariff Hike Details: As of June 4, 2025, the U.S. doubled tariffs on most imported steel and aluminum from 25% to 50%, aiming to protect domestic industries.

• Market Impact: The tariff increase has already rocked the steel and aluminum markets, with aluminum price premiums more than doubling this year due to limited U.S. production capacity.

• Trading Partners Hit Hard: Canada and Mexico, major U.S. trading partners, face significant impacts, with Canada being the top exporter of aluminum and steel to the U.S.

• Britain’s Exception: The U.K. is the only country spared the 50% rate, sticking to 25% tariffs due to a preliminary trade deal with the U.S. during a 90-day pause on broader tariffs.

• Economic Concerns: Critics warn that higher tariffs could raise costs for U.S. manufacturers and consumers, potentially slowing industries like automotive and construction.

• Global Trade Tensions: Canada and Mexico are pushing back, with Canada in “intensive negotiations” and Mexico calling the tariffs “unsustainable” and seeking exemptions.

Iran dismisses US nuclear proposal as pressure builds over Tehran’s nuke ambitions

The latest rejection of a U.S. proposal by Iran’s supreme leader could escalate tensions, impact international relations, and even risk military conflict.

• Iran Rejects U.S. Proposal: Ayatollah Ali Khamenei dismissed a U.S. offer allowing temporary uranium enrichment in Iran before phasing it out, calling it an infringement on Iran’s independence.

• U.S. Proposal Details: The U.S. suggested Iran could enrich limited uranium at an overground site but must shut down its main underground facilities at Natanz and Fordow, with a regional consortium eventually managing enrichment.

• Iran’s Stance: Iranian officials insist on continuing enrichment under their control, viewing it as non-negotiable, despite openness to a consortium idea.

• Ongoing Tensions: Five rounds of U.S.-Iran nuclear talks have stalled over enrichment disputes, with Iran amassing highly enriched uranium, enough for one bomb per month, per U.N. reports.

• International Pressure: Western powers, including the U.S., are set to push a resolution at the IAEA declaring Iran noncompliant, which could lead to U.N. Security Council action and reimposed sanctions.

• Risks of Escalation: Iran threatens to exit the nuclear non-proliferation treaty and expel inspectors if sanctions snap back, while Trump and Israel warn of potential military action if talks fail.

Bitcoin’s boom creates a new way to do business for major players

A fascinating trend is emerging where companies are jumping on the Bitcoin bandwagon, inspired by Michael Saylor’s massive success with Strategy (formerly MicroStrategy). It’s a big deal because it shows how businesses, even ones outside the crypto world, are betting big on Bitcoin to boost their value, but its not without risks and the results have been mixed.

• Saylor’s Blueprint: Michael Saylor turned Strategy into a Bitcoin powerhouse by investing over $40 billion in the cryptocurrency since 2020, leading to a 2,900% stock surge, far outpacing the S&P 500’s 76% gain.

• Copycat Craze: Dozens of companies, including Trump Media & Technology Group and GameStop, are mimicking Saylor’s strategy, piling cash (sometimes borrowed) into Bitcoin to juice up their balance sheets.

• Big Names, Big Bets: Trump Media plans to raise $2.5 billion for a Bitcoin treasury, while GameStop dropped $512 million on 4,710 Bitcoins, marking their first crypto move.

• Mixed Results: Unlike Strategy’s success, imitators like GameStop (down 17%) and Trump Media (down over 20%) have seen stock price drops after their Bitcoin announcements, suggesting the market’s not as hyped.

• Non-Crypto Players: Of the 80 firms now holding Bitcoin, at least 36 come from non-crypto sectors, showing how Saylor’s strategy is spreading across industries.

• Saylor’s Confidence: Saylor believes the market’s reaction to copycats is more about financing dynamics (like convertible bonds) than doubting Bitcoin itself, and he sees long-term gains for investors.

Beef ranchers aim to grow the national herd to lower prices

Beef prices are staying sky-high, and it’s got a lot to do with the U.S. cattle supply hitting a historic low. This matters because it’s not just about pricier burgers—it’s about the ripple effects on ranchers and consumers.

• Cattle Numbers at a 70-Year Low: The U.S. cattle herd is at its smallest since the 1950s, with only 86.7 million head, putting major pressure on beef supply.

• Beef Prices Are Soaring: According to the Bureau of Labor Statistics, steak is up 7%, ground beef 10%, chicken 3%, and ham 4% year-over-year, driven by low supply and strong demand.

• Drought and Costs to Blame: Years of drought, high feed prices, and inflation have forced ranchers to reduce herds, as it’s tougher to maintain large numbers of cattle.

• Herd Rebuilding Takes Time: Rebuilding the cattle population isn’t quick—it takes about 12 months to grow herds, so relief might not come until 2026.

• Trade and Tariffs Add Complexity: New tariffs on imports from Canada and Mexico, key beef suppliers, could keep prices high, though trade deals might ease this by 2026.

• Hope on the Horizon: Omaha Steaks CEO Nate Rempe predicts stabilization by Q3 2026 as ranchers work to rebuild herds and trade policies adjust.

California received $7 billion from feds for high speed rail project… But where are the rails?

The high-speed rail project in California that’s been talked about forever is hitting some serious roadblocks, and a recent report is raising eyebrows about how billions of federal dollars have been spent with no actual tracks to show for it.

• Massive Federal Funding, No Tracks: California received $7 billion in federal grants for a high-speed rail project meant to connect Los Angeles and San Francisco, but after 17 years, not a single mile of operational track has been laid.

• Budget Blowout: The project’s cost has skyrocketed from an initial $33 billion estimate in 2008 to between $88 billion and $128 billion, with a $10.2 billion budget gap for just the Merced-to-Bakersfield segment.

• Federal Funding at Risk: The Trump administration is threatening to pull $4 billion in grants, citing delays and cost overruns, with the U.S. Department of Transportation demanding answers by mid-July.

• Construction Progress, Sort Of: While over 50 structures like bridges and viaducts have been built, critics argue these are unusable without tracks, and the project is now projected to finish only a fraction of its original scope by 2033.

• Political and Financial Pressure: Governor Gavin Newsom’s push to use climate funds for the rail has sparked debate, and the project’s reliance on state bonds and cap-and-trade money hasn’t closed the funding gap.

• Private Investment as a Lifeline?: The rail authority’s CEO suggests private investors could help, but only if California guarantees repayments, raising questions about long-term viability.