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Jerome Powell fact-checking Trump has gone viral. What's the backstory of their feud?
Jerome Powell fact-checking Trump has gone viral. What's the backstory of their feud?

ABC News

time4 days ago

  • Business
  • ABC News

Jerome Powell fact-checking Trump has gone viral. What's the backstory of their feud?

It's been likened to a scene in comedy series The Office — US President Donald Trump being fact-checked by a disgruntled man in a suit and a hard hat. But there's more to awkward exchange than a new meme format. Here's the backstory of the video and why the pair's disagreement speaks to a serious issue in the US. That's Jerome Powell, the chair of the US Federal Reserve. The US Federal Reserve — which is often called "the Fed" for short — is the American equivalent to the Reserve Bank of Australia (RBA). It's America's central bank, an institution tasked with regulating the finance sector, keeping the US economy in check and tackling inflation. And part of that role is setting the target range for what's called the federal funds rate — a figure that influences the interest rates US banks charge customers. The key thing about the Fed is that it's a separate entity from the US government, so it's not subject to the whims of whatever party is in power. Mr Trump and Mr Powell are touring the Federal Reserve Board building, which is currently undergoing renovations, in Washington DC. This tour came after Mr Trump's administration criticised the renovation project as "ostentatious". The long-running renovation project was originally costed at $US1.9 billion ($2.9 billion), but the Fed says that went to $US2.5 billion. During the tour, Mr Trump said the project's cost "went up a little or a lot" and was costing "about $US3.1 billion". But Mr Powell shook his head, saying he had not heard those figures from the Fed. Mr Trump then handed Mr Powell a piece of paper. "Are you including the Martin renovation?" Mr Powell said. "You just added in a third building, is what that is. That's a third building." "It's a building that's being built," Mr Trump said. "No, it was built five years ago," Mr Powell said. The awkward moment happened before a pack of reporters, so footage of the exchange quickly spread. Reposts of the video clocked up hundreds of thousands of views on X. Meanwhile, a frame of Mr Powell examining the figures became a meme format: And the virality of the moment was not helped by this interaction between the two: Mr Trump wants Mr Powell to lower the federal funds rate so that interest rates will go down in the US. In an Australian context, that would be equivalent to the prime minister asking the governor of the RBA to lower interest rates. Since April, Mr Powell has warned that Trump's policies, particularly on tariffs, could undermine the economy. He said the tariff levels were "significantly larger than anticipated" and that they could result in both lower growth and higher inflation. This would make it difficult for the Fed to react and prohibit a rate cut. In response, Mr Trump launched a tirade and called the chair a "major loser". During the heated exchange this week, Mr Trump pressed him again on lowering interest rates, telling him to "do the right thing" and slash them by 3 percentage points or more. Donald Trump has repeatedly suggested that he would "fire" Mr Powell. The Federal Reserve Act of 1913, which created the central bank, says that members of the Board of Governors, including the Fed chief, can be "removed for cause by the president". But the law does not define "cause" or lay out any standard or procedures for removal. No president has ever removed a Fed board member, and the law has never been tested in court. Several federal laws shielding members of other agencies from being removed by the president without cause say that "cause" can include neglect of duty, malfeasance, and inefficiency. If Mr Powell is fired and sues, those laws could be a guide for courts to determine if Mr Trump had cause to remove him. Last week, Mr Trump said Mr Powell had kept rates too high and would be out in eight months. "I think he's done a bad job, but he's going to be out pretty soon," he said. US Treasury Secretary Scott Bessent on Monday said the entire Federal Reserve needed to be examined as an institution and whether it had been successful. Mr Bessent, speaking with US media, declined to comment on a report that he had advised President Donald Trump not to fire Fed chair Jerome Powell. He said it would be the president's decision. But he said the institution should be reviewed, citing what he called the Fed's "fear-mongering over tariffs". He said that there had been little, if any, inflationary effect so far. Following his visit, the president walked back his comments and said that he would like the chair to resign but it would disrupt the markets if he were to remove him.

Donald Trump Defends 'Weak Dollar,' Economic Analysts Respond
Donald Trump Defends 'Weak Dollar,' Economic Analysts Respond

Newsweek

time4 days ago

  • Business
  • Newsweek

Donald Trump Defends 'Weak Dollar,' Economic Analysts Respond

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. President Donald Trump defended the weakening U.S. dollar during a conversation with reporters Friday. "Well, you know, I'm a person that likes a strong dollar, but a weak dollar makes you a hell of a lot more money," Trump said in a media Q&A. Newsweek spoke with financial experts about the matter. Why It Matters While the U.S. dollar gained ground Friday, it still set for a weekly drop amid ongoing tariff negotiations and The Fed's bank meeting scheduled for next week. This week marks the greatest drop in a month, with the dollar index standing at 97.448. That shows a 1 percent weekly decline, while the euro stayed at $1.1754, close to its four-year high of $1.183. U.S. President Donald Trump speaks to the media as he departs the White House on July 15, 2025 in Washington, DC. U.S. President Donald Trump speaks to the media as he departs the White House on July 15, 2025 in Washington, To Know During Trump's conversation with reporters, he defended the declining value of the U.S. dollar, arguing that there were actually some benefits to the currency losing value. "When we have a strong dollar, one thing happens," Trump said. "It sounds good, but you don't do any tourism.... You can't sell anything. It is good for inflation. That's about it." Trump went on to say the U.S. has wiped out inflation. "I will never say I like a low currency, but you remember the battles I China, with Japan... They always wanted a weak currency. They're trying to get a weak currency now." However, economists have warned that the weakening U.S. dollar is likely to spark a price hike on everyday items while also forcing U.S. travelers to pay more when abroad. "A weaker dollar does have certain benefits—particularly for multinational corporations and U.S. exporters. It makes American goods more competitive abroad and can boost earnings when foreign profits are converted back into dollars," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "But let's be clear: the U.S. is a consumer-driven, import-heavy economy. A weaker dollar makes imports more expensive, which can drive inflation. So while there are benefits on the corporate side, it also hurts households by increasing the cost of everyday goods." Thompson also said Trump's comments on inflation were incorrect, as consumers are still facing price increases in many areas. "He's dead wrong," Thompson said. "We're still seeing elevated prices in areas like energy, particularly piped gas, and in household essentials. Food costs continue to climb, especially meat, and many families are seeing higher utility bills. Disinflation doesn't mean prices are falling—it just means they're rising more slowly, but they're still rising." In June, the consumer price index for all urban consumers climbed 0.3 percent, seasonally adjusted. Meanwhile, food was up 3 percent year-over-year, not seasonally adjusted. So far this year, the dollar has dropped more than 10 percent in value relative to foreign currencies from many of America's trading partners. Thompson said the U.S. dollar's weakness stems from a mix of concerns over U.S. fiscal policy. "Continued deficit spending and ballooning debt levels have led to questions about long-term economic stability. Since the dollar is the world's reserve currency, its strength is tied to global trust in our economy," Thompson said. Trump's ongoing tariff negotiations have also signaled alarm amongst some economists, who say that the heightened tariffs could be passed along by importers via higher prices. What People Are Saying Peter Schiff, chief economist and global strategist at wrote on X: "Trump said he wants a strong dollar but he also wants a weaker dollar. He says a strong dollar makes you feel better, but a weak dollar makes you richer. He also claimed he crushed inflation. His policies are highly inflationary. Trump's weak dollar dream will be a nightmare." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "A weaker dollar can have some benefits, namely in the form of cheaper exports which can boost demand for our goods and services internationally. However, the cons can easily outweigh the pros. A weaker dollar equates to higher prices on many items for American consumers, particularly on imports." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Despite no rate cuts yet this year, the dollar has weakened due to shifting interest rate expectations and a broader macroeconomic backdrop. Historically, higher U.S. interest rates attract capital, strengthening the dollar—but even with relatively high rates, the dollar is off to one of its worst starts in decades." What Happens Next For everyday Americans, the declining U.S. dollar could continue to impact their wallets after years of inflationary pressures, experts say. "Inflationary pressures have already left a sizable dent in many Americans' wallets in the years since the pandemic. Further weakening of the dollar could just prolong this effect," Beene said.

Touring Boston's Hotel Bars: The Fed At The Langham
Touring Boston's Hotel Bars: The Fed At The Langham

Forbes

time30-06-2025

  • Business
  • Forbes

Touring Boston's Hotel Bars: The Fed At The Langham

Wondering what a German Mark might taste like, in cocktail form? The Fed, off the lobby of the Langham, Boston, imagines it starting with a base of Monkey 47 Gin, which hails from Germany's Black Forest, infused with snap peas, blended with lemon-peel-infused dry vermouth and a Frankfurt green sauce herb oil. Classic decor and inventive cocktails await at the Fed Langham Boston Sounds weird, right? So how could I resist? The result is a delightfully herbaceous take on a martini, well-balanced and slightly citrusy. I love hotel bars, and Boston has its fair share of spots with an international flair and impeccable hospitality. The Fed is my second stop in an occasional series visiting the Hub's hotel-based watering holes. I plucked the German Mark from 'the Treasury Collection,' a list of cocktails at the Fed named for different country's currencies then made with ingredients from those countries. It's just one way the bar has a lot of fun while paying homage to the building's original occupant, the Boston Federal Reserve, which opened in 1922. The brainchild of Bar Manager Aliz Meszesi, the cocktail list is surely one of the most unique in the city. Romanian-born Meszesi ditched medical school to mix drinks, arriving in Boston in 2015 to help perfect the cocktail menu at Committee before doing the same at Hecate. Now she combines her own expertise with ideas from every employee at The Fed, from hosts/hostesses and food runners to the bartenders, soliciting suggestions for the seasonal menu from anyone who wants to contribute. Currently, the list includes that German Mark, which was invented by server/bartender Marco Cerulloas, and the Japanese Yen, crafted by bartender Matt White, which starts with Suntory Toki Whisky blended with white peach and house-made sakura-honey syrup, topped with soda water. Who wouldn't want to indulge in the Philippine Peso, colored with ube and flavored with Filipino citrus and coconut? The Langham Boston The currency theme even invites some employees back to their roots: the Philippine Peso, created by native Filipino Jasmine Darlucio, was inspired by Halo-Halo, the iconic dessert from her home country. The blend starts with Banks 5 Rum, and combines it with a native citrus called calamansi, ube and coconut milk to create a layered joyful drink. Beyond cocktails, seekers of rare pours should ask about 'The Vault,' home to the Fed's most precious spirits — like Rabbit Hole Mizunara Founders Release. Only 1403 bottles were released of this cask-strength blend of 15-year-old Kentucky bourbons, married and then re-casked for a full year in virgin Mizunara oak, a rare Japanese wood said to impart stunning complexity, and they have only one of the few allocated in the U.S. Order a spritz and don your sunglasses on the Rose Garden Terrace. The Langham Boston The Fed is strictly an afternoon-into-evening spot, filled with cozy conversational table arrangements, low lighting and inviting padded seats at the bar. it's currently the only dinner outlet at The Langham – as such the menu, which continues the banking theme by listing small plates under 'Share the Wealth' and raw bar as 'Cold Cash,' is an interesting mash-up of high-end pub grub (think wings, calamari and burgers) and the kinds of New England classics like lobster rolls and oysters that travelers want to explore. While the Fed features a cozy ambience intended to evoke private clubs from the 1920s, seasonally it steps out of the darkness and dons sunglasses, adding service on the adjacent Rose Garden Terrace. Brimming with blooms and overlooking the overlooking Norman B. Leventhal Park, it offers the same menu and prime people watching at this time of year.

OpenAI Changes Price Structure for Business Version of ChatGPT
OpenAI Changes Price Structure for Business Version of ChatGPT

Yahoo

time19-06-2025

  • Business
  • Yahoo

OpenAI Changes Price Structure for Business Version of ChatGPT

OpenAI is changing how it sells the business version of its ChatGPT chatbot, amid increasingly heated competition in the artificial-intelligence space. Previously, the U.S. AI giant sold its enterprise product at a fixed price. Now, its pricing structure has changed to include a credits system that clients can use to upgrade to more advanced tools and add more features, according to a person familiar with the matter. The Biggest Companies Across America Are Cutting Their Workforces Microsoft Plans to Cut Thousands More Employees All the Hollywood Action Is Happening Everywhere But Hollywood The Fed Waits Out the Tariff Economy The Path to Record Deficits The price for ChatGPT Enterprise varies based on how many credits the user buys, according to this person, allowing more companies to use the product across their workforce. Technology news outlet the Information reported on Wednesday that OpenAI has started selling discounted ChatGPT subscriptions, with price cuts ranging between 10% and 20%. Pricing for ChatGPT Enterprise isn't publicly available. OpenAI's rise has driven fierce competition in the AI industry. The company hit $10 billion in annual recurring revenue solely from its products as of June, driven by the growth of ChatGPT. News Corp, owner of Dow Jones Newswires and The Wall Street Journal, has a content-licensing partnership with OpenAI. Write to Kimberley Kao at Fed Holds Rates Steady and Keeps Door Open to Cuts Stablecoin Legislation Will Juice Demand for Treasurys—to a Point Waymo Wants to Bring Its Robotaxis to New York City QXO Proposes $5 Billion Acquisition of GMS What UnitedHealth Can Do to Revive Its Battered Stock Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

The Fed's rate decision may pack some drama
The Fed's rate decision may pack some drama

Yahoo

time16-06-2025

  • Business
  • Yahoo

The Fed's rate decision may pack some drama

The Fed's rate decision may pack some drama originally appeared on TheStreet. We're in luck this week. There are relatively few reports and decisions to watch. But the Federal Reserve meeting, set for Tuesday and Wednesday, is a very big deal. 💵💰💰💵 Not so much because of the decision the Fed will make, which most economists think will be to leave its key interest rate alone. The other reports will add a little more detail on whether tariffs are hurting the domestic economy. Much of the economy is stable. But housing is struggling. And the uncertainty created by tariffs have affected some industries. Foreign tourism and travel to the United States have fallen off this year, particularly from Canada. The overriding question is if the Fed, which has fiercely guarded its independence since 1951, will succumb to President Donald Trump's demands that it obey his president has threatened to fire Chairman Jerome Powell multiple times because Powell and the Fed move slowly in making interest-rate decisions. (He's learned he may not legally have the power. But he also knows Powell's term as Fed chair ends next May.) So, Trump regularly trashes Powell on Truth Social. The president wants the Fed to cut rates now because he worries the economy is slowing down or maybe falling into recession. It's a classic starting point of view from someone raised in real estate development: Rising interest rates are death. The stock market nearly new highs last week before the Israeli attacks on Iran. Oracle () was up nearly 24% last week, tops among Standard & Poor's 500 stocks. Airlines and cruise lines, such as Delta Air () and Carnival Corp. () , were lower. The Fed's point of view is that the Central Bank has two mandates: to promote maximum employment and stable prices. Employment has held mostly steady since 2022. Inflation will higher than the 2% a year the Fed wants. The Fed's decision, expected to be to leave its federal funds rate at 4.25% to 4.55% (or a blended 4.33%), will be announced at 2 p.m. Wednesday, and Powell is hold a news conference a half hour or so later. The federal funds rate is what the Fed wants banks to charge one another for overnight loans needed to meet reserve requirements. With the decision will be projections of where Fed officials see the economy and interest rates headed over the next few years. More Economic Analysis: Hedge-fund manager sees U.S. becoming Greece A critical industry is slamming the economy Reports may show whether the economy is toughing out the tariffs Manufacturing surveys in Middle Atlantic states. Will come from the Federal Reserve banks of New York and Philadelphia on Monday and Friday, respectively. Economist study these because they are more locally sourced. U.S. retail sales for May, due at 8:30 am. ET Tuesday. This reports estimate how much stuff consumers are buying. The April report showed a 0.1% gain. Industrial production and capacity utilization, due Tuesday at 9:15 a.m.. These reports show production trends and how much of U.S manufacturing capacity is used. Home Builder Confidence Index, due at 10 a.m. Tuesday from the National Association of Home Builders. These have consistently shown builders are worried about sales levels and buyers' ability to afford to buy a home. Housing starts and building permits, due at 8:30 a.m. Wednesday. The data in this report gives a rough idea of new home construction: how much is built, where and for how much. It's a key monthly report. A note: There will be no reports on Thursday, June 19. That is the Juneteenth holiday, or, more formally, the Juneteenth National Independence Day. Government offices, financial markets, banks, and other businesses will be Fed's rate decision may pack some drama first appeared on TheStreet on Jun 16, 2025 This story was originally reported by TheStreet on Jun 16, 2025, where it first appeared. Sign in to access your portfolio

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