Latest news with #US400m
West Australian
6 days ago
- Business
- West Australian
Jerome Powell, Donald Trump argue at Federal Reserve building site over cost blow-outs, feud continues
Donald Trump has confronted Jerome Powell in a tense exchange in front of the media, further fuelling his ongoing dispute with the Federal Reserve chairman. The awkward clash happened as Mr Trump took a tour of the under-construction Federal Reserve building. The two men have been at loggerheads for months, with the US President repeatedly taking issue with Mr Powell for not lowering interest rates for Americans. Mr Powell has resisted intense pressure from Mr Trump and his administration to do so, instead adopting a steady approach, remaining reluctant to slash rates while the President's new tariffs disrupt the US economy. Under the US system, the President has little control over the independent Federal Reserve, including limitations on removing the chair. However, Mr Trump has applied public pressure where he can to force Mr Powell's hand, or push him out. On Thursday, Mr Trump arrived at the new Federal Reserve building site in Washington DC, saying he wanted to come down to check what was going on, taking with him a piece of paper with a new sky-high figure for total costs of the build. 'We're just taking a look at what's happening,' Mr Trump said. 'It's a tough construction job. A lot of expensive work.' Mr Trump was accompanied by Republican Senator Tim Scott, from South Carolina, who is also the chair of the Senate Banking Committee. 'One of the reasons we wanted to see it was the overruns of the expenses,' Senator Scott said. 'We wanted to figure out why.' Mr Trump said he was 'taking a look' because of new figures, which Mr Powell appeared unaware of at first. 'It looks like it's about $US3.1 billion,' Mr Trump said, as Mr Powell began shaking his head. 'It's went up a little bit, or a lot. So the $2.7 is now $3.1,' Mr Trump added. Mr Powell quickly responded, 'I'm not aware of that, Mr President. I haven't heard that from anyone at the Fed.' Mr Trump then handed Mr Powell a folded-up piece of paper, something he claimed was from the Fed. 'This came from us?' Mr Powell asked. 'Yes,' Mr Trump said, adding 'I don't know who does that'. It took Mr Powell around five seconds to quickly scan a document he had not seen before he fact-checked the US President in front of the media, pointing out the error in his calculations. 'You're including the Martin renovation. You just added in a third building,' Mr Powell said. 'I know, it's a building that's being built,' Mr Trump responded. However, Mr Powell refused to accept the President's narrative that costs had blown out by an additional $US400m. 'No, it (the Martin renovation) was built five years ago. We finished Martin five years ago,' Mr Powell said. 'It's part of the overall...' Mr Trump began, dismissing Mr Powell's explanation. 'It's not new,' Mr Powell reasserted. Mr Trump attempted to take a new course with Mr Powell over the costs, cornering him on possible future cost blow-outs. 'We're going to take a look, we're going to see what's happening,' Mr Trump said. 'Do you expect any more additional cost overruns?' he asked the Fed chair. Mr Powell said the Fed didn't 'expect' cost overruns, but was 'ready' if they arose. 'We have a little bit of a reserve that we may use. But, no,' he added. In classic Trump-style, the US President then retook control of the media event, taking off his white hard hat, saying it was nice to take it off when 'we're not under too much danger'. The US President said that as a real estate developer, if he had a project manager who was operating over budget, he would 'fire them'. 'I'd like to see it get finished. In many ways, it's too bad it started, but it did start and it's been under construction for a long time,' Mr Trump said. Asked by a journalist what Mr Powell could say to the US President to get him to 'back off' from criticism, Mr Trump was clear. 'Well, I'd love him to lower interest rates, other than that, what can I tell you?' 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. - With Reuters
Perth Now
6 days ago
- Business
- Perth Now
‘Fire him': Trump, Powell clash at Fed building site
Donald Trump has confronted Jerome Powell in a tense exchange in front of the media, further fuelling his ongoing dispute with the Federal Reserve chairman. The awkward clash happened as Mr Trump took a tour of the under-construction Federal Reserve building. The two men have been at loggerheads for months, with the US President repeatedly taking issue with Mr Powell for not lowering interest rates for Americans. Mr Powell has resisted intense pressure from Mr Trump and his administration to do so, instead adopting a steady approach, remaining reluctant to slash rates while the President's new tariffs disrupt the US economy. Under the US system, the President has little control over the independent Federal Reserve, including limitations on removing the chair. However, Mr Trump has applied public pressure where he can to force Mr Powell's hand, or push him out. On Thursday, Mr Trump arrived at the new Federal Reserve building site in Washington DC, saying he wanted to come down to check what was going on, taking with him a piece of paper with a new sky-high figure for total costs of the build. 'We're just taking a look at what's happening,' Mr Trump said. 'It's a tough construction job. A lot of expensive work.' Mr Trump was accompanied by Republican Senator Tim Scott, from South Carolina, who is also the chair of the Senate Banking Committee. Sen. Tim Scott, R-S (L), US President Donald Trump (C) and Federal Reserve chair Jerome Powell (R). Credit: Julia Demaree Nikhinson / AP 'One of the reasons we wanted to see it was the overruns of the expenses,' Senator Scott said. 'We wanted to figure out why.' Mr Trump said he was 'taking a look' because of new figures, which Mr Powell appeared unaware of at first. 'It looks like it's about $US3.1 billion,' Mr Trump said, as Mr Powell began shaking his head. 'It's went up a little bit, or a lot. So the $2.7 is now $3.1,' Mr Trump added. Mr Powell quickly responded, 'I'm not aware of that, Mr President. I haven't heard that from anyone at the Fed.' Mr Trump then handed Mr Powell a folded-up piece of paper, something he claimed was from the Fed. 'This came from us?' Mr Powell asked. 'Yes,' Mr Trump said, adding 'I don't know who does that'. It took Mr Powell around five seconds to quickly scan a document he had not seen before he fact-checked the US President in front of the media, pointing out the error in his calculations. 'You're including the Martin renovation. You just added in a third building,' Mr Powell said. 'I know, it's a building that's being built,' Mr Trump responded. However, Mr Powell refused to accept the President's narrative that costs had blown out by an additional $US400m. 'No, it (the Martin renovation) was built five years ago. We finished Martin five years ago,' Mr Powell said. 'It's part of the overall...' Mr Trump began, dismissing Mr Powell's explanation. 'It's not new,' Mr Powell reasserted. Mr Trump attempted to take a new course with Mr Powell over the costs, cornering him on possible future cost blow-outs. 'We're going to take a look, we're going to see what's happening,' Mr Trump said. 'Do you expect any more additional cost overruns?' he asked the Fed chair. Mr Powell said the Fed didn't 'expect' cost overruns, but was 'ready' if they arose. 'We have a little bit of a reserve that we may use. But, no,' he added. In classic Trump-style, the US President then retook control of the media event, taking off his white hard hat, saying it was nice to take it off when 'we're not under too much danger'. President Donald Trump's visit aimed to pile pressure on Federal Reserve chair Jerome Powell. (AP PHOTO) Credit: AAP The US President said that as a real estate developer, if he had a project manager who was operating over budget, he would 'fire them'. 'I'd like to see it get finished. In many ways, it's too bad it started, but it did start and it's been under construction for a long time,' Mr Trump said. Asked by a journalist what Mr Powell could say to the US President to get him to 'back off' from criticism, Mr Trump was clear. 'Well, I'd love him to lower interest rates, other than that, what can I tell you?' 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. - With Reuters
West Australian
25-06-2025
- Business
- West Australian
Accounting software firm Xero buys New York's Melio for $4b in a bid to crack US market
Accounting software firm Xero will buy New York-based Melio Payments for $2.5 billion ($3.9b) in a bid to push deeper into the US market. Announced to the Australian Securities Exchange on Wednesday, the deal marks Xero chief Sukhinder Singh Cassidy's first major acquisition since she stepped into the top job in February 2023. Melio — founded in 2018 — has offices in New York and Tel Aviv, and provides accounting and payments software to small and medium-sized businesses in the food, beverage and construction sector. Melio has about 80,000 customers and processed about $US30b of payments in the 2025 financial year to generate $US153 million in revenue. Meanwhile, Xero provides accounting software for invoicing, payroll and other functions primarily to small business. Headquartered in Wellington, NZ, it also has a presence in Australia, the UK, US, Canada, Singapore and South Africa. In the US, it has 400,000 subscribers compared with one million in the UK and 2.3 million in Australia and New Zealand. The company said the combined business would significantly accelerate US revenue growth and presented an opportunity to more than double its group revenue in the 2028 financial year. Ms Singh Cassidy said it was excited to welcome Melio's world-class team and looked forward to working together to deliver shared goals. 'Adding Melio's world-class team, technology platform, and innovative (accounts payable) solutions to Xero enables a step change in our North America scale,' she said, adding it had the potential to help millions of US small and medium businesses, and their accountants, better manage their cash flow and accounting on one platform. 'Xero and Melio are highly complementary — together they complete the key jobs to be done for US SMBs, extend reach across customer segments, provide both direct and syndicated offerings, and deliver multiple revenue drivers.' Melio co-founder and chief executive Matan Bar said joining Xero was an incredible opportunity for the team to further its mission to reinvent the way businesses paid each other. Xero will fund the deal via a fully underwritten $1.85b institutional placement, $US360m of Xero scrip issued to existing Melio shareholders, a fully underwritten $US400m unsecured revolving credit facility, and $US600m of existing cash on Xero's balance sheet. The deal is expected to complete within six months.
West Australian
12-05-2025
- Business
- West Australian
THE ECONOMIST: ‘If I'm not president, you're f…ed' Oil firms frack around & find out under Donald Trump slump
'If I'm not president, you're f…ed.' So Donald Trump reportedly told a roomful of oil bosses gathered at Mar-a-Lago after his re-election. During the campaign Mr Trump sought to position himself as the American oil industry's only hope against the supposedly hydrocarbon-hating Democrats — brushing aside the fact that domestic oil production rose sharply during Joe Biden's time in office. Since his arrival in the White House, he has set about rolling back environmental regulations and expedited permitting in an effort to get America's oilmen to 'drill, baby, drill'. With his trade war, however, the president has also trampled on global demand for hydrocarbons. Since he returned to the Oval Office, the benchmark West Texas Intermediate oil price has fallen from $US80 a barrel to $US60 ($93). That is a problem for the country's shale patch, which accounts for around two-thirds of domestic output — and for smaller producers in particular, who have been among the president's most enthusiastic backers. Today's price is troublingly low for America's shale drillers. Matthew Bernstein of Rystad, a consultancy, calculates that, on average, they need an oil price of around $US63 a barrel to cover their production costs, overheads, debt interest and dividends. On May 5 Diamondback Energy, one big shale firm, said that it was slashing its production target for the year and cutting capital spending by $US400m. Others including Coterra Energy, EOG Resources and Matador have also announced plans to reduce drilling. 'We are at a tipping-point for US oil production,' says Travis Stice, Diamondback's boss. 'If these prices persist for a year, US oil production will decline,' warns Ben Dell of Kimmeridge, a private-equity firm focused on energy. In addition to weighing on prices, Mr Trump's tariffs are also raising costs for oil businesses. Tariffs on steel products such as drilling pipes, casings and tanks are of particular concern for the industry. All this is especially worrying for smaller producers. Thanks to a recent wave of consolidation, oil giants such as BP, Chevron and ExxonMobil account for roughly 60 per cent of American shale output, notes Scott Gruber of Citigroup, a bank. Smaller independent firms tend to have less productive wells and higher costs. Unlike the giants, they lack the bargaining power to force suppliers to absorb the impact of tariffs. Capital to help weather the storm tends to be harder to access, and costlier, and the smaller firms are typically not diversified beyond American shale. So far at least, BP, Chevron and Exxon have announced no plans to cut production. Nonetheless, little oil remains far more full-throated than big oil in its support for Mr Trump. The giants are not enthused by the president's proposal to axe his predecessor's subsidies for carbon-capture and hydrogen technologies, which they have been investing in. Exxon recently said it would spend up to $US30b by 2030 on such low-carbon endeavours. That contrasts with the enthusiasm for Mr Trump among smaller oil firms. Their godfather is Harold Hamm, a shale billionaire from Oklahoma who backed the president's campaign and persuaded Mr Trump to name Christopher Wright, his protégé and a fellow shale driller, as America's secretary of energy. Mr Hamm recently convened a secretive meeting of oilmen in Tulsa, supposedly to promote the use of natural gas to power data centres for artificial intelligence. Insiders say that plans were hatched to tilt the federal regulatory playing field to advantage fossil fuels over renewables. Four members of Mr Trump's cabinet were reportedly present at the gathering. Despite the pain brought on by his trade war, little oil still has big hopes for Mr Trump's presidency.
