Powell defends Federal Reserve in Princeton speech amid onslaught of attacks from Trump
Powell and the central bank have been subject to extensive criticism in recent weeks by President Donald Trump and a potential successor, former Fed governor Kevin Warsh.
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San Francisco Chronicle
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- San Francisco Chronicle
Company advised by Trump sons said it hoped to benefit from fed money, then took it back
NEW YORK (AP) — A public document filed by a company that just hired President Donald Trump's two oldest sons as advisers included a sentence early Monday that said it hoped to benefit from grants and other incentives from the federal government, which their father happens to lead. But when The Associated Press asked the Trump family business about the apparent conflict of interest, the document was revised and the line taken out. Eric Trump and Donald Trump Jr. are getting 'founder shares' worth millions of dollars in New America Acquisition 1 Corp., a company with no operating business that hopes to fill that hole by purchasing an American company that can play 'a meaningful role in revitalizing domestic manufacturing,' according to to the filing. The president has geared his trade policy toward boosting manufacturing in the U.S. The original version of the securities filing said the target company should be 'well positioned' to tap federal or state government incentives. That reference was taken out of the revised version of the filing. The Trump Organization didn't reply to a question about whether New America still planned to benefit from government programs or why the line was cut. But the outside law firm Paul Hastings that helped prepare the document sent an email to AP saying it was 'mistake' made by 'scriveners,' an old term for transcribers of legal papers. Kathleen Clark, an expert in government ethics, said any excuses are too late because the Trumps had already tipped their hand. 'They just deleted the language. They haven't committed not to do what they said earlier today they were planning to do," said the Washington University law professor and Trump critic. "It's an attempt to exploit public office for private profit.' New America is what's know as a special purpose acquisition company, or SPAC. It's a publicly traded company that exists solely to use its funds to acquire another company and take the target public. New America plans to raise money by selling stock on the New York Stock Exchange at $10 a share. That will hand the two Trump sons a total of $5 million in paper wealth on the first day of trading. The company hopes to sell enough shares to raise $300 million, which it then plans to use buying a yet unidentified manufacturer. A press release issued by New America saying it was focused on 'American values and priorities." It made no mention of the aim to get government incentives. The filing to New America's potential new investors to the Securities and Exchange Commission was explicit about what it was looking for in a target company. It said, among other things, it wanted a company that can ride 'public policy tailwinds" by benefiting from federal or state 'grants, tax credits, government contracts or preferential procurement programs.'
Geek Wire
a few seconds ago
- Geek Wire
Microsoft cuts another 40 jobs in Washington state, continuing layoffs amid AI investment surge
Microsoft has laid off more than 15,000 people globally since May. (GeekWire File Photo / Todd Bishop) Microsoft laid off another 40 employees in Washington, bringing the total number of job cuts in its home state to 3,160 since May, according to a public filing. These latest cuts are on a much smaller scale than those made by Microsoft in May and July, when it eliminated 1,985 and 830 positions in the state, respectively, as part of broader layoffs that impacted more than 15,000 people globally. Microsoft confirmed that these cuts are separate from the prior reductions. The company declined to provide details about the teams, roles, or regions impacted. 'Organizational and workforce changes are a necessary and regular part of managing our business,' a Microsoft spokesperson said in a statement. 'We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.' The company said it is providing severance packages and outplacement services to affected employees, including career counseling and job search support. Microsoft noted that some laid-off workers have transitioned to other roles at the company. The layoffs coincide with record capital spending on AI infrastructure, with the company investing more than $30 billion this quarter alone, in part to expand capacity for training and running AI models. Rising capital expenditures have created pressure to reduce operating costs through workforce reductions. The ongoing layoffs have created tension inside Microsoft's workplace culture, with some employees expressing concern about job insecurity and what some see as an erosion of the more compassionate environment under CEO Satya Nadella. In a company-wide memo July 24, Nadella acknowledged the 'uncertainty and seeming incongruence' of cutting jobs while simultaneously making record investments in AI infrastructure, calling the layoff decisions 'among the most difficult we have to make.' Microsoft's global headcount held steady at 228,000 over the past year, according to its annual 10-K filing. That reflected an initial round of layoffs in May, prior to larger cutbacks in July, even as the company continues to hire in some areas. The company briefly surpassed a $4 trillion market value after a blockbuster earnings report last week, becoming only the second company to reach that mark. Its stock closed Monday up 2.2%, at a market value of $3.98 trillion.
Geek Wire
a few seconds ago
- Geek Wire
Seattle leaders pass tax hike for big companies, cuts for small biz – but voters get final word
View of Seattle's downtown and Harbor Island, the city's maritime shipping hub, from the Smith Tower. (GeekWire Photo / Lisa Stiffler) With a mix of hand-wringing and can-do enthusiasm, Seattle City Council members this afternoon unanimously passed a tax overhaul that would eliminate business taxes for thousands of small companies while significantly raising rates on the city's biggest revenue generators, including Amazon. The measure now goes to voters to decide its fate. The Seattle Shield Initiative would nix the city's business and occupation (B&O) tax for companies earning up to $2 million annually, while boosting rates on receipts above that threshold. City officials project the restructured tax would generate an additional $80 million per year, with funds designated for human services programs such as support for food insecurity, services for immigrants, drug abuse funding and other programming. Seattle Mayor Bruce Harrell and City Councilmember Alexis Mercedes Rinck proposed the legislation on June 25, and needed its approval by today so that it could be included on the Nov. 4 ballot. The measure was originally intended to help plug a $250 million projected budget shortfall for Seattle and to aid in backfilling federal funding that's being cut by the Trump administration. On Monday, councilmembers received a more favorable forecast, learning that the two-year budget deficit is expected to be $150 million. Seattle has struggled for years to find politically viable funding solutions for city services, affordable housing, and downtown recovery efforts following the COVID pandemic. In November, the council narrowly rejected a 2% capital gains tax on stock and bond sale profits exceeding $262,000 as a partial solution to the revenue challenges. A comparison of business and occupation taxes in Seattle and surrounding cities, as produced by Seattle's Office of Economic and Revenue Forecasts and City Budget Office Chart and shared on Aug. 4, 2025. Some city leaders expressed concerns about Seattle's B&O taxes outpacing those collected elsewhere. Jon Scholes, president and CEO of the Downtown Seattle Association, previously called the B&O tax overhaul 'a boneheaded proposal of epic proportions' that would put 'big risks to the fragile commercial tax base.' GeekWire reached out to Amazon for comment on the proposal. A service business company with $20 million in gross revenue that currently pays $85,400 in B&O taxes would see that number rise to $117,720 if voters approve the changes. A corporation earning $100 million would go from $427,000 up to $640,920. The rates are lower for big businesses in retail, wholesale and manufacturing. City staff earlier noted that the legislation would shrink the B&O tax base from 21,000 taxpayers to just 5,000, potentially creating less predictable revenue collections. Among those sharing reservations on the measure — while still voting in favor of it — was City Council President Sara Nelson. 'This was a rushed process,' Nelson said. 'We are talking about completely restructuring the way we charge B&O taxes, which makes up about a third of our general fund revenue, and could have pretty profound impacts on our economy and — most importantly — jobs.' The council rejected tax exemptions targeting the maritime industry, while adding B&O breaks for Fred Hutchinson Cancer Center and Seattle Children's. Rinck framed the bill as smart, progressive policy for safeguarding city services and expressed optimism that voters would agree. 'Once the voters provide us with this tool, we can ensure that critical city services are maintained despite the challenges … our budget or the Trump administration presents,' she said. 'We will also be giving Seattle voters a choice on shielding our small businesses — the heartbeat of our neighborhoods — from economic uncertainty.' Key details Under the Seattle Shield Initiative: The B&O tax threshold exemption increases from $100,000 to $2 million in gross revenue. Businesses that exceed that threshold would not pay tax on the first $2 million. An estimated 76% of small- and medium-sized businesses would no longer pay the tax. About 90% of all businesses would pay less than they do currently. Retail, wholesale and manufacturing businesses above the $2 million exemption would pay 34 cents per $100, up from 22 cents. Service companies would see a jump from 43 cents per $100 up to 65 cents. RELATED:
