Fed posts video tour, renovation details as White House intensifies attacks
(Reuters) -The Federal Reserve on Monday added a video tour and new details about the renovation of two historical buildings at its headquarters in Washington, as the Trump administration ramps up attacks on U.S. central bank chief Jerome Powell for not cutting interest rates and criticizes the project's cost and design.
The six-minute, 23-second video indicates it was recorded on July 18 and depicts construction scenes overlaid with text descriptions of the project and some of the challenges encountered, such as asbestos abatement and preservation of details like a long-disused skylight with a decorative eagle. It shows the installation of infrastructure like blast-protected windows and modern heating, plumbing and electrical systems.
The White House is continuing its reviews of the Fed building project and officials hope to schedule a visit this week, a White House official said on Monday.
White House Deputy Chief of Staff James Blair, one of three administration officials newly appointed to the National Capital Planning Commission, told reporters last week that officials from the White House and Office of Management and Budget as well as several lawmakers want to visit the facility during the day.
The Fed also posted fresh materials detailing aspects of the project that drew particular White House criticism as lavish, including what NCPC planning documents describe as a "Governors' private elevator" leading to "executive dining rooms."
"The descriptive labels are not representative of our previous or planned use of these spaces," the Fed's new materials said, noting that the elevator's use is not limited to governors, and the rooms at issue are multi-use and not part of a "dining suite" as the plans describe.
The U.S. central bank also posted diagrams with big red X marks showing where planned water features on the campus grounds had been eliminated, saving costs.
An added section to the Frequently Asked Questions part of the materials described the buildings' heritage, including their use as a planning site for the Manhattan Project atomic weapons program during World War II, complete with a 24-hour guard by sharpshooters.
The Fed is widely expected to leave its benchmark interest rate in the 4.25%-4.50% range at a two-day policy meeting next week. Powell and most of his colleagues say that while inflation has cooled, they expect President Donald Trump's import tariffs to result in higher prices in coming months and consider that a rate cut now could help to reignite inflation.
The Fed reduced borrowing costs three times in the last four months of 2024 but has left its policy rate unchanged since December.
Trump has repeatedly berated Powell and said he should lower rates immediately. The president, who appointed Powell to lead the central bank during his first term in the White House, has said he wants the Fed chief gone and has threatened to fire him several times. Powell's term as head of the central bank runs until May 15.
U.S. Treasury Secretary Scott Bessent, who Trump has said would be a good candidate to replace Powell, on Monday said the Fed has been "fear-mongering over tariffs" and needs to be examined as an institution.
Republican U.S. Representative and Trump ally Anna Paulina Luna has referred Powell to the Justice Department for investigation, Fox News reported on Monday.
A Fed spokesperson had no comment.
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Trump can't save Olympic sports through executive order, but he can by funding them
There is probably little good that can come from President Trump's executive order on college sports given that it's legally questionable, vaguely written in terms of enforcement and an unpredictable stick of dynamite thrown into the middle of legislative movement on the current SCORE Act making its way through the House of Representatives. But rather than trying to limit by presidential edict how and what college athletes get paid, there is something Trump could do that would address one of the major concerns for his administration. Much of the executive order focuses on protecting opportunities for Olympic sport athletes. With athletic budgets getting squeezed by up to $20.5 million going directly to athletes thanks to the House vs. NCAA settlement, there's widespread fear that non-revenue programs across the country will be on the chopping block. And given the NCAA's role as the de facto development system for much of America's success at the Olympics every four years, a significantly smaller allotment of scholarships could mean both fewer educational opportunities for young people and an erosion of America's standing on the medal table. So here's a suggestion for the Trump Administration: Want to leave a legacy for Olympic sports? Use government money to fund them. Dan Wolken: Attempts to curb payments to college athletes keep failing. There's only one way forward. In nearly every country around the world except the United States of America, federal dollars are funding Olympic sports programs. But here, it's the responsibility of the U.S. Olympic and Paralympic Committee and college athletic departments. The former is funded by corporate sponsorships and private donations. The latter is funded by college football. That system, imperfect as it may be, has worked for a long time. If it doesn't work anymore because the economics of college sports have changed, then we need to tweak the system. And if international domination of swimming, track and field and gymnastics is a priority for America, then what's the problem with taxpayers having a little skin in the game? It's not as if public dollars paying for sports is a new concept in this country. You can find the evidence by driving past nearly any pro stadium or arena if you live in a major city. Surely there are some smart people who can figure out how to build a federally funded joint partnership between the USOPC, various National Governing Bodies and the NCAA that coordinates and supports elite athlete development in a handful of Olympic sports that matter most, allowing schools to focus on providing opportunities and educating those who need athletic scholarships to attend college. Admittedly, this idea is a little radical, potentially impractical and rife with unintended consequences. But one way it could work, at least in theory, is that a certain percentage of the top American recruits in the key Olympic pipeline sports would go into a recruiting pool. When they choose a school, this government-funded organization would pay for the four-year scholarship, attach an NIL payment for the athlete to represent the organization and provide a grant to the school as reimbursement for the development cost. To make it more equitable, schools would be limited to a certain number of recruits every year from that elite pool of athletes. The rest of the roster would be filled with either foreign athletes or non-elite American recruits that they must pay for themselves. One obvious criticism of this plan is that smaller schools would get squeezed out even further, given that they're more likely to have a budget crisis than a Texas or an Ohio State and less likely to recruit elite athletes. This might require the NCAA to rethink how it stratifies schools into three divisions and instead move toward a two-tiered model where you either meet certain scholarship and funding standards to be in the Olympic development division or compete in the non-Olympic division, which would functionally be more like intramural or club sports. And maybe none of this is workable. But the point is, it's time to come up with some creative, bold solutions rather than just whining about how schools can't afford to pay for their non-revenue sports anymore. For many, many years, the USOPC has gotten a free ride on the back of the NCAA system, which has only been possible because universities illegally colluded not to share revenues with the athletes that played a significant role in generating them. But the good news is, all the systems are in place to keep Team USA's supremacy intact. There has to be a way for more formal collaboration between the USOPC and the NCAA that can save scholarships, development opportunities and teams from being cut. It just needs the funding. And the federal government can make that happen. Trump can make that happen. If he wants a real and lasting legacy as a president who kept the Olympic movement stable at a time of necessary change in college sports, that's how he can do it. Not an executive order destined to be picked apart and ultimately made irrelevant. This article originally appeared on USA TODAY: Donald Trump can't save Olympic sports through EO, but could do this
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17 minutes ago
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Commentary: Paramount appeased Trump — but now it has to battle Colbert and all his friends
There may be a new entrant in the annals of corporate hole-digging: Media titan Paramount, which owns CBS and recently said it's canceling the top-rated "Late Show with Stephen Colbert." Paramount said it needs to cancel the Colbert show for 'financial reasons' and leaked reports likely sourced to the company suggest the show loses around $40 million per year. But the decision reeks of Trumpian subterfuge, putting Paramount in the fraught corporate position of picking sides in one of President Trump's many disputes over business and cultural priorities. Paramount plans to merge this year with media firm Skydance, to help stabilize its finances and ease the transition from legacy media behemoth to a nimbler streaming operation. The two companies agreed on the $8 billion deal last year, when Joe Biden was president. The Securities and Exchange Commission approved the deal in February. That left the Federal Communications Commission, which must also sign off since the deal involves the transfer of broadcast licenses. FCC approval was 'widely seen as a formality,' as Deadline reported in April. But it didn't come until July 24, months later than would have been likely under any president other than Trump. In the meanwhile, Paramount paid tribute to Trump in unprecedented ways likely to dog the company for months or years, with the cancellation of Colbert's show fueling a barrage of criticism from Colbert himself and many allies, some of it on Paramount's own airwaves. Paramount clearly didn't anticipate this sort of trouble when it arranged the deal last year. But when Trump won the presidency in November, Paramount faced new barriers to a buyout that otherwise might have been routine. That's because of Trump's personal beef with CBS and the news show "60 Minutes." Trump sued the network last year as an individual, claiming the show distorted a 2024 interview with Kamala Harris, Trump's foe in the presidential election, to give her favorable treatment. Shortly after taking office in January, Trump appointed loyalist Brendan Carr to head the FCC. Then Trump converted the formerly independent agency into an arm of the White House's policy and political operations. One of Carr's first moves as Trump's FCC boss was opening an investigation into the CBS for its interview with Harris, an unprecedented effort to use government power to intimidate a news organization. 'The chairman of the FCC has cagily created a new and coercive technique for operating outside the agency's established statutes and procedures to attack corporate decisions he and Donald Trump do not like,' former FCC commissioner Tom Wheeler, now of the Brookings Institution, wrote in February. 'Prime targets are media company editorial decisions.' The Los Angeles Times and other news organizations reported that Shari Redstone, non-executive chair of umbrella company Paramount Global, pushed her executives to settle with Trump. Redstone and her family stand to net about $1.75 billion from the Skydance deal. So she has a clear interest in pushing barriers to the deal out of the way. That may explain why earlier this month, Paramount and CBS agreed to settle the Trump lawsuit for $16 million. Colbert roasts Trump regularly on his show and is far more political than David Letterman, whom he replaced in 2015. On July 14, the cheeky host called the $16 million Paramount payment to Trump 'a big, fat bribe'—on CBS's own air. Three days later, Paramount canceled Colbert's show. There's no public evidence that the company axed Colbert to appease Trump. Yet it did please Trump. 'I absolutely love that Colbert got fired,' Trump posted to social media on July 18. Then on July 24, Paramount received the FCC blessing to close the deal with Skydance. Mission accomplished ... Except for what is sure to be a very messy aftermath. Colbert's contract lasts until next May (same as the tenure for embattled Federal Reserve Chair Jerome Powell), and the show will air until then. 'For the next 10 months, the gloves are off,' Colbert told his audience on July cronies Anderson Cooper, Andy Cohen, Jimmy Fallon, Seth Myers, Jon Stewart, John Oliver, Adam Sandler, Christopher McDonald, Lin-Manuel Miranda, and Weird Al Yankovic joined that show for a spoof that ended with a Trump-Paramount kiss-cam exposé. The same day, Jon Stewart devoted half of his weekly Comedy Central program to blasting Paramount for trying to 'make yourselves so innocuous, that you can serve a gruel so flavorless, that you will never again be on the boy king's radar.' Stewart ended the show with a musical number, backed by a gospel quintet, featuring the refrain 'Go f— yourself,' which may or may not become an instant classic but is certainly giggly. Stewart's show, like Colbert's, runs on a network owned by Paramount. So does the animated series "South Park," which just debuted the premiere episode of its 27th season, in which a fictional Trump tries to seduce a [fictional] Satan, who mocks fictional Trump for having diminutive [fictional] genitalia. Maybe Paramount won the battle. But will it win the war? Will Trump really be satisfied that Colbert's Paramount-supported mockery of him might continue until next year? Or that Stewart and the diabolical "South Park" brain trust will keep tweaking him indefinitely? If Paramount cites contractual obligations requiring it to continue airing the Trump-bashing resistance, will Trump nod and say, right, of course? Big public companies make mistakes all the time. The memorable ones are those compounded by a corporate reaction that amplifies the original sin and makes everything worse. In 2023, Target tried to back away from its own LGBTQ outreach effort, offending the very people it was wooing and making no new friends in the process. In 2017, United Airlines appeared to defend thuggish security guards who forcibly dragged a passenger off a plane, igniting a firestorm of bad publicity that wiped nearly $1.5 billion off its market value. Uber co-founder Travis Kalanick resigned as CEO in 2017 after failing to shake months of controversy over a toxic company culture rife with sexual harassment and discrimination. Those incidents are now textbook examples of how to worsen a crisis, rather than fix it. Paramount now seems headed toward its own chapter in that cringy volume. Colbert, Stewart, et al. won't do Trump any harm, since they've been slamming him for years and have long been speaking to like-minded audiences. But now they're aiming their comedic lances at Paramount, which most of their viewers have probably never thought much about. That will change. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices.
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President Trump's executive order on college sports: Here's what it actually means
WASHINGTON, D.C. — On Thursday morning in the nation's capital, NCAA president Charlie Baker spoke to a few dozen members and guests of the National Press Club — an operation located in Washington's downtown, just a short walk to the White House. Just hours later, the association's years-long fight for federal intervention in college sports received, perhaps, a boost from the man living just a few blocks away. President Donald Trump released his long-awaited executive order related to college athletics, announcing in a five-page order titled 'SAVING COLLEGE SPORTS' that he is directing members of his cabinet to create policy around several aspects of the industry that protect the NCAA and conferences from enforcing and creating rules to govern it. But what exactly does Trump's executive order mean? What will it change, if anything, about college sports' athlete compensation and transfer environment? The short answer, at least for now, is not very much. The longer answer is … well … there are still questions. What are the most important items in the order? Trump's executive order has been a long time coming. In fact, just last week Yahoo Sports obtained a copy of a draft of the order, which isn't wholly different to the one he signed and released on Thursday. Above anything else, the order's preamble describes the college athletics landscape as having been subject to unfair court rulings that 'created an out-of-control, rudderless system' which is 'under unprecedented threat.' 'Waves of recent litigation against collegiate athletics governing rules have eliminated limits on athlete compensation, pay-for-play recruiting inducements, and transfers between universities, unleashing a sea change that threatens the viability of college sports,' Trump writes in the order. He goes on to write critically that some schools are paying their athletes as much as $50 million this year from a combination of House settlement-related revenue share and third-party NIL. 'A national solution is urgently needed to prevent this situation from deteriorating beyond repair and to protect non-revenue sports, including many women's sports,' he writes. How he plans to do this is to direct various members of his cabinet — the attorney general, secretary of labor, secretary of education, etc. — to create policy around several concepts that the NCAA and conferences have been requesting help on from Congress for years. Among those: Protecting scholarships for non-revenue sports: The executive order, most notably, requires schools to maintain or even increase the number of scholarships they provide to non-revenue sports. This is geared to protect Olympic and women's sports that are at risk of elimination as schools direct more funding away from those and to the sports that generate the revenue like football and men's basketball. Those with $125 million or budgets (most of the power league schools) must provide more scholarship opportunities than they did last year, for instance. Those with budgets of $50 million must provide at least the same, as seen in a screen shot of the section here. Prohibit third-party, 'pay-for-play': You might call this the prohibition of booster collective pay to athletes, which, in a way, codifies the House settlement terms that prohibit collective pay to athletes if they are not deemed to be for legitimate endorsement or commercial opportunities. This issue is at the heart of negotiations among attorneys that is expected to result in a resolution soon that permits collectives to operate in a more open capacity than first thought. The executive order reinforces that provision in the House settlement. How does Trump plan to enforce these parameters? Well, that remains a bit murky, but he suggests in the order that members of his cabinet, as well as the Federal Trade Commission, have 30 days to create a plan on the enforcement of such, including potentially withholding federal funding for violators, opening up Title IX investigations, etc. Athlete employment: Trump directs the Secretary of Labor and the National Labor Relations Board to 'clarify the status of college athletes' — an obvious gesture toward the ongoing debate over courts potentially deeming college athletes as employees. As stated in the order preamble, Trump is against college athletes becoming employees and is clearly, with this directive, ordering cabinet members and the NLRB — he appoints the board — to rule that college athletes are students. Ironically enough, while many college leaders fight against employment, some of them believe collective bargaining is the only solution for the industry. Limited liability protection: This is another issue the NCAA and conferences have spent millions of dollars and six years lobbying for. They want to be protected from legal challenges so they can enforce their rules over things such as transfers, roster limits, booster pay — many of which have been deemed illegal by courts. Trump clearly disagrees with these court rulings, as he notes in the preamble. The order directs the attorney general and the chairman of the Federal Trade Commission to create policies to protect the 'long-term availability of college athletic scholarship and opportunities' when such is 'unreasonably challenged under antitrust' law. The attorney general and the FTC have 60 days to create such a plan, the order says. What are the immediate impacts of the executive order? The answer here is potentially … nothing. Trump's cabinet members — many of whom are quite busy with other more pressing matters — will need to make policy around these subjects. The specifics of that policy will dictate exactly how pivotal, if at all, this order is. What is a certainty is that whatever policies are created are not law and will likely be subject to legal scrutiny. Congressional action and court rulings are law in this country — not executive orders, legal experts tell Yahoo Sports. Baker even suggested this during his talk Thursday morning. 'You can't fix this stuff from executive order,' he said. 'Our focus for now really needs to be trying to get stuff dealt with through the legislative process.' As it turns out, Wednesday was a historic day for college sports with regard to congressional legislation. An all-encompassing federal college sports bill made its way out of committee for the first time since the NCAA's lobbying efforts began nearly six years ago. The SCORE Act, bipartisan but pro-Republican and NCAA-friendly legislation that many Democrats are against, received the necessary votes to advance out of committees and is eligible for debate on the House floor when members return in September from their traditional summer break. In many ways, the Score Act grants the NCAA and conferences similar protections as Trump's order. Above anything, Trump's executive order may get Congress to more urgently and swiftly push the bill across the goal line. However, if it does advance out of the House, the SCORE Act faces stiff pushback in a divided U.S. Senate, where at least seven Democrats are needed to overcome the filibuster and reach the 60-vote margin for any bill passage. The Senate, though, has been working toward the introduction of its own legislation, led by Sen. Ted Cruz, who, much like Trump, has made college sports regulation a priority. He's been in negotiations now for months with several Democrats, most notably Chris Coons, Richard Blumenthal and Cory Booker. No agreement has been reached despite more than a year of intense talks. Will Trump's executive order change that? It's one of many questions on the topic that remains a mystery.
