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Jerome Powell to hold off on rate cuts amid Trump policy uncertainty, Goldman Sachs says

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DOGE’s USAID teardown probably violates the Constitution, judge rules as he blocks Musk’s group from making further cuts to the agency

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The dismantling of the U.S. Agency for International Development by billionaire Elon Musk’s Department of Government Efficiency likely violated the Constitution, a federal judge ruled Tuesday as he indefinitely blocked DOGE from making further cuts to the agency.

The order requires the Trump administration to restore email and computer access to all employees of USAID, including those put on administrative leave, though it stops short of reversing firings or fully resurrecting the agency.

In one of the first DOGE lawsuits against Musk himself, U.S. District Judge Theodore Chuang in Maryland rejected the Trump administration’s position that Musk is merely President Donald Trump’s adviser.

Musk’s public statements and social media posts demonstrate that he has “firm control over DOGE,” the judge found pointing to an online post where Musk said he had “fed USAID into the wood chipper.”

The judge said it’s likely that USAID is no longer capable of performing some of its statutorily required functions.

“Taken together, these facts support the conclusion that USAID has been effectively eliminated,” Chuang wrote in the preliminary injunction.

The lawsuit filed by USAID employees and contractors argued that Musk and DOGE are wielding power the Constitution reserves only for those who win elections or are confirmed by the Senate. Their attorneys said the ruling “effectively halts or reverses” many of the steps taken to dismantle the agency.

The administration has said that DOGE is searching for and rooting out waste, fraud and abuse in the federal government, consistent with the campaign message that helped Trump win the 2024 election. The White House and DOGE did not immediately respond to a request for comment on the ruling.

Musk, his team and Trump political appointee Pete Marocco have played a central role in the two-month dismantling of USAID. In one instance in early February, the administration placed the agency’s top security officials on forced leave after they tried to block DOGE workers from accessing USAID’s classified and sensitive documents.

The administration, with Musk’s and DOGE’s support, went on to order all but a fraction of the agency’s staffers off the job through forced leaves and firings, and terminated what the State Department said was at least 83% of USAID’s program contracts.

The moves were part of a broader push by Musk and the Trump administration to eradicate the six-decade-old foreign assistance agency and most of its work overseas.

Trump on Inauguration Day issued an executive order directing a freeze of foreign assistance funding and a review of all U.S. aid and development work abroad, charging that much of foreign assistance was wasteful and advanced a liberal agenda.

Democratic lawmakers and other supporters of USAID have argued Trump had no authority to withhold funding that Congress already approved.

Chuang said DOGE’s and Musk’s fast-moving destruction of USAID likely harmed the public interest by depriving elected lawmakers of their “constitutional authority to decide whether, when and how to close down an agency created by Congress.”

The lawsuit was filed by the State Democracy Defenders Fund. Norm Eisen, the nonprofit’s executive chair, said the ruling is a milestone in pushback to DOGE and the first to find that Musk’s actions violate the Constitution’s Appointments Clause, which mandates presidential approval and Senate confirmation for certain public officials.

“They are performing surgery with a chainsaw instead of a scalpel, harming not just the people USAID serves but the majority of Americans who count on the stability of our government,” he said in a statement.

Oxfam America’s Abby Maxman in a statement urged all staffing and funding to be reinstated. “The funding freeze and program cuts are already having life or death consequences for millions around the world,” said the chief executive of the humanitarian group.

This story was originally featured on Fortune.com



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Germany’s Siemens to cut over 6,000 jobs globally—with half the roles lost in home market

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German industrial giant Siemens said Tuesday it planned to cut over 6,000 jobs worldwide due to weak demand and increasing competition in China and in its home market.

The reductions, about two percent of Siemens’s global workforce, will mostly be made in the group’s factory automation unit while a small number of positions will be lost in its electric vehicle charging business.

“Muted demand primarily in the key markets of China and Germany coupled with increased competitive pressures have considerably reduced orders and revenue in the industrial automation business,” said the group in a statement.

The “aim is to strengthen the future competitiveness of the businesses affected and enable investments in growth markets,” it said.

Siemens, whose sprawling global business runs from making trains and factory equipment to systems that manage data centres, has been struggling amid slowdowns in both China and Europe’s biggest economy, which has been mired in recession for the past two years.

About 5,600 of the job cuts will be made by 2027 in the automation business, which supplies robotics, other machinery and industrial software to factories, with about half the roles lost in Germany.

Problems in the automation unit hit Siemens’s earnings at the end of last year, dragging quarterly operating profit down to 2.5 billion euros ($2.7 billion) from 2.7 billion euros a year earlier.

In its vehicle charging business, the group plans to cut 450 positions from a total of 1,300 employed in the operation worldwide by the end of the current financial year.

With “limited growth potential for low-power charging stations”, Siemens said it planned to focus on areas like fast-charging infrastructure.

German carmakers and their suppliers alike have been facing severe headwinds due to a slowdown in demand for electric cars.

For employees affected by the layoffs in Germany, Siemens will seek to find some of their new roles within the group. Some jobs will also be lost through people retiring.

At the end of last year, Siemens employed about 313,000 people worldwide, including about 86,000 in Germany.

This story was originally featured on Fortune.com



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Nvidia CEO Jensen Huang: AI will need more computing power, not less

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FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.



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