Bloomberg Daybreak: US Edition
Trump Administration Prepares for Warsh Fed Chair Nod; Government Shutdown Averted
· Summarized
Key takeaways
- Kevin Warsh is the likely nominee for Federal Reserve Chair, with a history of critiquing the Fed's expansive policies.
- A tentative deal has been reached to prevent a government shutdown, but legislative hurdles remain.
- Market reactions include increased stock volatility as investors assess the implications of Warsh's potential appointment.
- The East Coast is bracing for severe winter weather, particularly in the southern regions.
Summary
Trump's Federal Reserve Nomination
The podcast discusses President Trump's intention to nominate Kevin Warsh as the next Chairman of the Federal Reserve. Sources suggest that Warsh's monetary policy experience makes him a strong candidate, with a past board membership at the Fed and connections to key financial figures on Wall Street. Warsh's views, including his critique of the Fed's approach to quantitative easing and its expansive balance sheet, align with Trump's perspective, indicating potential shifts in monetary policy if he is appointed.
Government Shutdown Averted
Discussion around the tentative agreement between President Trump and Senate Democrats to prevent a government shutdown over immigration policy. Despite the deal, hurdles remain as House Speaker Mike Johnson discusses procedural complications that may delay voting on the agreement before funding runs out.
Market Reactions to Economic Developments
The podcast examines market reactions to the announcement of Warsh's nomination and the broader economic implications. With a focus on the stock market, there is concern about how investors are responding to potential shifts in interest rates and monetary policy under Warsh's leadership.
Weather Forecast and Impact on the East Coast
The podcast also touches on the weather forecast for the East Coast, including a significant winter storm expected to impact the Carolinas, while New York and DC may have a milder experience.
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Show notes
Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) The Trump administration is preparing for the president to nominate Kevin Warsh to be the next Federal Reserve chair, according to people familiar with the matter. President Trump said Thursday he plans to announce his pick to lead the US central bank on Friday morning. The people, who requested anonymity to discuss matters not yet public, cautioned that the selection is not final until Trump makes a formal announcement. The White House and Warsh did not immediately respond to requests for comment. Warsh, a former Fed governor and one of the four finalists on Trump’s shortlist to be the next central bank leader, visited the White House on Thursday, one person said.
2) President Trump and Senate Democrats have reached a tentative deal to avert a disruptive US government shutdown as the White House continues to negotiate with the Democrats on placing new limits on immigration raids that have provoked a national outcry. Trump announced that an agreement had been reached and urged both parties to vote for it. However, lawmakers are almost certain to fail to enact the measure before a Friday night deadline. While a short funding lapse and partial government shutdown is now seen as the most likely scenario, the effect on federal operations would be minimal if it’s swiftly resolved within a couple days.
3) The Trump administration is seeking to scale down the number of federal officers in Minneapolis after the killing of two US citizens during immigration raids sparked a nationwide uproar and weeks of protests. Tom Homan, the administration’s “border czar,” said Thursday at a press conference in Minneapolis that officials from Customs and Border Protection and Immigration and Customs Enforcement are working on a “draw down plan” that hinges on cooperation from local, state and federal officials.
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