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ECB cuts interest rates for first time in 5 years

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ECB cuts interest rates for first time in 5 years

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The European Central Bank has cut interest rates for the first time in nearly five years, moving faster than its US and UK counterparts, but warning that price pressures remain high.

The ECB lowered its benchmark deposit rate by a quarter percentage point to 3.75 per cent after its governing council met in Frankfurt on Thursday.

Traders in swaps markets slightly lowered their bets on a second cut by September to 65 per cent, from 70 per cent ahead of the announcement.

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The bank said it was “now appropriate to moderate the degree of monetary policy restriction” in response to a more than 2.5 percentage point fall in inflation since its last rate increase in September 2023.

But it cautioned that it was “not pre-committing to a particular rate path” and warned that “domestic price pressures remain strong as wage growth is elevated, and inflation is likely to stay above target well into next year”.

At a press conference, ECB president Christine Lagarde said that inflation was expected to “fluctuate around current levels” for the rest of this year before declining next year.

She said the ECB had decided to cut “because overall our confidence in the path ahead — because we have to be forward looking — has been increasing [in] the past few months”, adding that the “reliability of our forecasts” had risen markedly in recent quarters.

Lagarde forecast that wage growth would moderate and worker productivity would improve over the course of the year, helping to ease labour cost pressures for companies.

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Data released last week showed Eurozone inflation accelerated for the first time this year to 2.6 per cent in May, having slowed from a peak above 10 per cent in 2022.

Raising its forecasts for this year and next, the ECB said inflation would average 2.5 per cent in 2024, 2.2 per cent in 2025 and 1.9 per cent in 2026.

“The statement arguably gave less guidance than might have been expected on what comes next. In that sense, the immediate tone is a ‘hawkish cut’,” said Mark Wall, chief European economist at Deutsche Bank. “This is not a central bank in a rush to ease policy.”

The euro nudged higher 0.2 per cent to $1.0888 after the ECB announcement.

Interest rate-sensitive two-year German Bund yields — a benchmark for the Eurozone — edged higher to 3.02 per cent, up 0.05 percentage points on the day.

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Thursday’s move came a day after a similar rate cut by the Bank of Canada and follows earlier decisions to ease monetary policy by central banks in Brazil, Mexico, Chile, Switzerland and Sweden this year.

By contrast, the US Federal Reserve is expected to keep rates on hold next week at a 23-year high range of 5.25 to 5.5 per cent after price pressures in the world’s biggest economy proved more stubborn than expected.

The Bank of England is also considered unlikely to lower its bank rate from a 16-year high of 5.25 per cent when it meets on June 20.

The ECB lifted its growth forecast for this year from 0.6 per cent to 0.9 per cent. It expects 1.4 per cent growth next year and 1.6 per cent in 2026.

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Three firefighters killed on Colorado-Utah border as wildfires intensify

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Three firefighters killed on Colorado-Utah border as wildfires intensify

A helicopter drops water on the Cottonwood Fire in Beaver, Utah, on Saturday, June 27, 2026.

Ty ONeil/AP


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Ty ONeil/AP

Three firefighters have died and two others have been injured Saturday while they tackled blazes on the Colorado-Utah border, the U.S. Wildland Fire Service has announced. The agency said the crew members had been part of an interagency response to the Knowles and Gore fires.

“The U.S. Wildland Fire Service stands united with the USDA Forest Service in grief and in our unwavering support for the loved ones left behind,” the service said in a statement on Facebook. “Their bravery, dedication, and sacrifice will never be forgotten.”

In a press release, the Department of the Interior said that the five firefighters were involved in a “burnover incident”, which refers to when officials are unable to find an escape route, so have to shelter as best they can while a fire passes directly over them. The department said the two firefighters who survived were being treated for burn injuries.

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Fires in Utah, Colorado and Arizona have been intensifying, thanks to days of low humidity, high temperatures and strong winds. The conditions have pushed fire behavior to extremes not commonly seen in the region, stretching resources and forcing the governors of both Utah and Colorado to declare emergencies.

Cottonwood fire not yet contained

The biggest blaze is the Cottonwood Fire, burning in rugged terrain in southern Utah’s Beaver County, which has grown to more than 144 square miles and remains entirely uncontained. It is currently the largest wildfire burning anywhere in the United States.

It has already severely damaged the Eagle Point ski resort and destroyed summer cabins. Damage assessments were underway Saturday, though no final estimates of destroyed structures were yet available.

On Saturday, hundreds of residents in the towns of Marysvale, Junction and Circleville were placed on notice to leave as conditions worsened.

Also burning is the Snyder Fire, covering more than 28,000 acres. It began as the Snyder Mesa Fire on Saturday in east Utah’s Grand County, but later combined with the smaller Jones and Knowles Fires in Colorado.

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Alyssa Mason, a spokesperson assigned to the Cottonwood Fire, told NPR that crews this weekend had been dealing with single-digit humidity and wind gusts of around 45 miles per hour, on top of fuel moisture readings between 2 and 8 percent.

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Trump-backed Rep. Julia Letlow wins Louisiana Senate primary runoff

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Trump-backed Rep. Julia Letlow wins Louisiana Senate primary runoff

Rep. Julia Letlow won the Republican primary runoff for Senate in Louisiana, NBC News projects, defeating state Treasurer John Fleming in another victory for President Donald Trump’s slate of preferred candidates.

Trump endorsed Letlow early in the race, which went to a runoff after none of the GOP candidates won a majority of the initial primary vote on May 16. Trump waded into the state in an effort to oust GOP Sen. Bill Cassidy, who voted to convict Trump on impeachment charges following the Jan. 6, 2021, Capitol riot.

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See live runoff results here

Letlow was the top vote-getter in the first-round primary, winning 45%, followed by Fleming at 28%. Cassidy won just 25% and did not qualify for the runoff.

Letlow will be in a strong position to win in November in the solidly Republican state, which Trump carried by 22 points in 2024. Democrat Jamie Davis, a farmer, easily won the Democratic Senate nomination Saturday night.

Letlow has pledged to be a strong supporter of the president’s policies.

“I promise you this: When I get to the United States Senate, I will never back down from fighting for your America First agenda,” Letlow told the president during a telerally with Trump on Thursday night.

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Letlow framed the race as the choice between “a real conservative fighter in the Senate, or whether we are going to send another career politician who does not want to save our country.” She touted her support for eliminating the Senate filibuster to help pass the Save America Act, a Trump-backed measure to overhaul U.S. election laws.

Fleming also tried to make the case that he was the staunchest Trump ally in the race, taking aim at Letlow’s past support for diversity, equity and inclusion policies and foreign aid. Letlow told NBC News earlier this year that she reversed her position on DEI when she “saw it for what it was” and has since been “fighting against it.”

But Trump’s backing helped boost Letlow, who also had help on the airwaves from allied super PAC.

She also touted endorsements from other top Louisiana Republicans, led by Gov. Jeff Landry. House Majority Leader Steve Scalise and Rep. Clay Higgins also backed Letlow.

Letlow is expected to join the Senate after serving nearly three terms in the House, where she also served on the powerful Appropriations Committee. She first came to Congress in 2021 after winning a special election following the death of her late husband. Luke Letlow, a former congressional aide who won a House election in 2020, died of Covid before he was sworn into office.

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As Supreme Court expands Trump’s immigration power, experts warn of steeper U.S. population decline

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As Supreme Court expands Trump’s immigration power, experts warn of steeper U.S. population decline

President Trump holds up a bill funding immigration enforcement after signing it in the Oval Office of the White House, Wednesday, June 10, 2026, in Washington.

Julia Demaree Nikhinson/AP


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Julia Demaree Nikhinson/AP

Even before the Supreme Court ruled Thursday that President Trump has broad power to deport hundreds of thousands of migrants living legally in the U.S. under temporary protected status, David Bier feared the U.S. was slipping toward a demographic cliff.

“We’re destined to be there, in short order, there’s no question,” Bier said. “We’re already seeing a situation where most counties in the United States had more deaths than births.”

An expert on population and immigration at the libertarian Cato Institute, Bier believes the U.S. is beginning to look more like China, Italy and South Korea — nations that face rapid aging and population decline are seen as a crisis.

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U.S. birthrates have been declining for decades. There are far too few children born each year to maintain a stable population.

Until last year, high rates of foreign immigration largely offset that trend. But for the first time since the 1930s, during the Great Depression, the U.S. now faces record low birthrates and low numbers of migrants at the same time.

“Our higher birthrates of a century ago are not coming back. There’s no way to have a sustainable fiscal and economic situation that doesn’t involve immigration,” Bier said.

Trump’s legal fight to end temporary protected status for hundreds of thousands of Haitians, Syrians and others living in the U.S. legally is only one part of a wider administration effort to squeeze immigration.

The Supreme Court also ruled this week that the administration has authority to block most asylum seekers from entering the country. Federal agents have also conducted raids in cities across the U.S., to accelerate deportations.

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Last month, Trump issued an executive order that could make it harder for many migrants living in the U.S. without full legal status to use banking and financial services.

Many immigration opponents see these changes as progress. In a statement following this week’s Supreme Court decisions. A spokesman for the Federation for Immigration Reform said Trump should have full authority to direct who enters the U.S.

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