WSJ What’s News
Why Kevin Hassett Appears to Be Trump’s Pick for the Next Fed Chair
· Summarized
Key takeaways
- President Trump is narrowing down his choices for the next Federal Reserve chair, with strong indications favoring Kevin Hassett.
- The rollback of fuel economy standards by Trump is aimed at reducing costs for Americans but has drawn environmental concerns.
- The SignalGate incident highlights regulatory challenges faced by high-ranking officials within the military and questions on information declassification.
- The shift towards deploying lower-cost drones reflects a strategic adaptation by the Pentagon to modern combat challenges.
Summary
Announcement: Federal Reserve Chair Selection
The episode highlights President Trump's narrowing decision on the next Federal Reserve Chair, following interviews with potential candidates being unexpectedly canceled. Trump's words suggest he has focused on Kevin Hassett, an established adviser, given his history and suitable economic profile. Hassett's shift towards a more aggressive stance regarding the Federal Reserve's independence has raised questions among investors about his potential leadership style.
Trump's Fuel Economy Regulation Changes
President Trump announced significant changes to fuel economy standards, reducing the requirements from the Biden administration's 50 miles per gallon to 34.5 mpg by 2031. This move, praised by auto and oil industries, aims to make vehicles more affordable but faces criticism from environmental advocates concerned about increased gas consumption and pricing.
Pentagon Watchdog Report on SignalGate Incident
A Pentagon watchdog indicated Defense Secretary Pete Hegseth violated regulations by sharing sensitive military information via the Signal app, commonly referred to as the SignalGate incident. Despite sharing classified details, the report suggests Hegseth has the authority to declassify this information. After declining an interview, he stated that no laws were breached, with indications of a partial exoneration according to Pentagon spokespeople.
Deployment of New Military Drones
The Pentagon's initiative to deploy new kamikaze drones, modeled after Iran’s combat drones, aims to adapt to the evolving landscape of modern warfare. With an emphasis on cost-effectiveness, these drones will enable U.S. forces to leverage cheaper alternatives to traditional high-cost drones, enhancing battlefield capabilities while promoting rapid deployment.
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Show notes
P.M. Edition for Dec. 3. President Trump is closing in on his pick to succeed Jerome Powell as the Federal Reserve chair. WSJ’s chief economics correspondent Nick Timiraos explains why longtime Trump adviser Kevin Hassett is winning the race. A Pentagon review found that Defense Secretary Pete Hegseth violated departmental regulations with Signalgate—but the findings suggest Hegseth didn’t break the law. And WSJ’s national security reporter Lara Seligman reports on why the Pentagon is deploying new drones copied from Iran’s Shahed drones to the Middle East. Sabrina Siddiqui hosts.
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