Fed's Cook Defies Trump Pressure; Jackson Hole Conference Starts

Bloomberg Audio Studios, Podcasts, Radio News.
Good Morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Can we begin with ramped up political pressure on the
Federal Reserve. President Trump is calling on FED Governor Lisa
Cook to resign. That's after the President's head of Housing Finance,
Bill Poulty, urged the Justice Department to investigate Cook for
alleged mortgage fraud. Well, now Cook is pushing back. She
has issued a statement reading, quote, I have no intention
of being bullied to step down from my position because
of some questions raised in a tweet end quote. But
Poulty says the President has reason to fire Cook for cause.
I mean, this is supposed to be somebody who's entrusted
with the public good, who's supposed to be looking after
interest rates, and I believe it's I believe it's blatant
and massive mortgage fraud. I believe that there will be
a criminal investigation.
Federal Housing Finance Agency Chief Bill Poulti's on Fox News Now.
It's unclear whether Attorney General Pam Bondi will investigate Cook,
but if she were to step down, it would pave
the way for President Trump to secure a majority on
the seven member FED Board of Governors.
Well, Nathan. The Cook controversy comes as the fed's annual
Economic Policy Symposium kicks off in Jackson Hole. The highlight
comes tomorrow when FED Chier J. Powell gives remarks and
Tom Keen is leading our coverage in Jackson Hole.
You look at the weather in Jackson Hall. You see
the temperature variation in the forties at night and then
up into the eighties during that perfect August day. What
we know is the sun rises on Jackson Hole. A
two day meeting here in Wyoming. But then for Chairman
Powell is this where the sun sets. It's an interesting
body language here. I love what jan Rando and all
did in Europe where they talked about the other central
bankers rallying for Chairman Powell. Christine Laguard will be there
from the ECB and from the Bank of England. The
Governor Bailey will be there as well. There'll be the academics,
but maybe more than in fifteen years, this will be
less about the academics and the papers and much more
about the future of the FED.
And Tom Keen will head to Bloomberg Radio's Jackson Hole coverage.
It all finishes up with a special edition of Bloomberg
Surveillance tomorrow at nine am Eastern with Tom, Mike McKee
and Lisa Bromowitz, plus a watch for special episodes of
the On Lots podcast. Joe Wisenthal and Tracy Alloway will
be taping several conversations from the event as.
Well, well.
Karen.
Most FED officials highlighted the risk to inflation as outweighing
concerns over the labor market at their latest meeting last month.
Here's Bloomberg US economist Stuart Paul.
As we read through the minutes, and as we think
about the data that we've seen, everything basically points to
an incremental move toward monetary policy getting a little bit
less restrictive and a little bit of additional comfort in
the balance of risk shifting towards cooling employment. And I
think the PAL is going to need to acknowledge that.
That is Bloomberg US economist Stewart Paul. Of course, the
Fed kept rates unchanged last month. FED governors Christopher Waller
and Michelle Bowman voted against that decision.
Well, Nathan, let's turn to the equity markets now where
futures are lower after another day of losses on Wall Street,
and once again it was tech stocks leading the way
lower and Bloomberg John Tucker joins us with the latest. John,
good morning, Yeah.
Good morning, Karen.
The Nasdaq fell for a second consecutive session the s
and P five hundred stretch. It's pulled back to a
fourth straight day from record highs, a renewed slide in
big tech, and also signs inflation remains the predominant concern
of the Federal Reserve weight on trading yesterday, add oak
Tree Capital Management co founder Howard marxist stocks maybe in
the early days of the bubble.
No reason I think they'll be a correction soon.
But the point is that things are expensive.
They may go on to become more.
Expensive, but the fact that they're expensive it should.
Not be lost.
Well hear the end of yesterday's session, stock did rebound
from session lows GT some P five hundred, clothes just
to two tenths of a percent lower, with most major
groups advancing. You know, York, come John Tucker, Bloomberg Radio.
All right, John, thank you.
One of the hardest hit stocks during the recent tech selloff.
Has been Pallenteer. It's six session losing streak has wiped
out seventy three billion dollars in market value. That's ended
a rare win to short sellers more than one point
six billion dollars in profits for them, according to data
from S three Partners, that barely dents the four and
a half billion dollars in paper losses the traders have
put up betting against Pallenteer this year. Despite recent losses,
Palenteer remains the best performer on the S and P
five hundred after soaring one hundred six percent.
Well Nathan earnings are going to be in focus this
morning as retailers continue to report their latest quarterly results.
Later this morning, we hear from Walmart and Bloomberg's Town
Buzzby has a preview.
Investors expect good news from Walmart. Thanks to continued strength
in the grocery aisle and giving its size pricing advantage
inventory management, it should be well positioned to manage the
impact of the Trump tariffs. COMP sales in the US
expected to be up four point two one percent ahead
of estimates thanks to robust US retail spending. Bloomberg consensus
calls for revenue of one hundred and seventy six point
zero five billion dollars on adjusted earnings per share of
seventy four cents. Tom Busby, Bloomberg Radio.
Okay, Tom, thank you. Let's turn from earnings to Aerin.
Hurricane Erin. It is triggering dangerous beach conditions across much
of the East Coast that will likely last into the week.
And Bloomberg meteorologist Craig Allen as the.
Latest hurricane Aeron is pounding the North Carolina coastline, especially
the outer banks, with tropical storm force winds, a few
outer bands of rain occurring around the area, and there
are swells translating into waves of about ten to twenty
feet or more now. Even though Erin is going to
be veering northeast out to see Erin is a huge
storm and therefore these same conditions may make their way
on up into the New York City area, the Tri
State region, and over towards the lower sections of New
England through the day today and into Friday.
And Bloomberg meteiologist Craig Allen notes high surf and rip
current advisories are in place through tomorrow afternoon.
Well, Nathan, we get the latest now on efforts to
end the war in Ukraine. President Vladimir Zelenski said he
will hold intensive meetings in the coming days to understand
the kinds of security guarantees his allies are willing to provide.
But the Ukrainian leader is pushing back against a Russian
idea to add China as part of a peacekeeping force.
In his words, we don't need guaranteurs who don't help Ukraine.
Vice President jd Van says the negotiations are focused on
security guarantees for Ukraine and territorial claims from Russia. But
he says the US has made a lot of progress.
You can never say with certainty what the outcome in
this situation is going to be, but we now have
the Russians talking to the Ukrainians. They're talking details about
what would be necessary on each side to stop the
fighting and stop the killing. We've made more progress in
three months than the country had made in three years
in stopping this conflict, and I think it's because sometimes
you just need a president who will pick up the
phone call somebody.
Vice President J. D Vance spoke on Fox News. Meantime,
Ukraine says Russia launched one of its heaviest attacks yet overnight,
with forty missiles and close to six hundred drones launched
across the country. Officials say at least one person was
killed and more than a dozen wounded in the city.
Of Leviv and back here in the US, karen of
federal judges ruled that Elon Musk will have to face
allegations that he defrauded voters when he promised them a
chance to win a million dollars for signing a petition.
The judge says a woman in Arizona can proceed with
her claims that she thought the winners would be picked
at random, even though they were actually carefully selected to
be spokespeople for Musk's Political Action Committee. Musk spent hundreds
of millions of dollars to elect President Trump and Republicans
in twenty twenty four, Well Nathan.
The Federal Trade Commission is suing LA Fitness over its
cancelation practices. The FDC's director of the Bureau of Consumer
Protection says tens of thousands of LA Fitness customers reported
difficulties with canceling their membership and that allow these six
hundred jim chain to continue collecting hundreds of millions of
dollars from customers who would have otherwise left. An LA
Fitness official says the allegations are without merit. Time now
for a look at some of the other stories making
news in New York and around the world, and for
that we're joined by Bloomberg's Michael Barr. Michael, Good Morning,
Good morning, Karen.
The Republican led Texas House as signed off on redrawn
congressional maps that will give the GOP a bigger edge.
In twenty twenty six, President Trump pushed for the redistricting.
Texas House. Democrats left the state two weeks in protest,
but were assigned around the clock police monitoring when they
returned so they would not leave the state again. Democratic
state Representative Nicole Collier, who refused the monitoring and slept
in the state capitol, vows to keep fighting.
The fact that.
I'm feeling mad infuriate me that I.
Still want to fight.
Republican state Representative Katrina Pearson says, Democrats lost and they
have to get over it.
So you're upset, and I get it.
You're losing at the ballot box, but you will not
silence the majority in the state of Texas, The.
Texas Senate and Governor Rabbits still need to sign off
on the redrawn maps. California Democrats are looking to redraw
their own congressional maps in an effort to counteract Texas.
California Governor Gavenusom says these maps would be temporary for
three election cycles and subject to voter approval. Lieutenant Governor
Elenni kunilacus, what.
MAGA has been trying to do now for really a
generation is have majority power with minority votes, and that's
really what this fight is all about.
Lieutenant Governor Kunelakis says, California is just fighting back, saying
enough is enough. A federal judge in New York who
presided over this sex trafficking case against Jeffrey Epstein, has
rejected the government's request to unseal grand jury transcripts. Wednesday's
ruling by Judge Richard Berman came after the judge presiding
over the case against Epstein's ex girlfriend, Glaine Maxwell, also
turned down the government's request. According to the Israel Defense Forces,
the first stages of Israel's attack on Gaza City got
underway yesterday. Israel plans to call up as many as
sixty thousand reservists for the new offensive, despite opposition from
the international community. Global News twenty four hours a day,
and whenever you wanted with the Bloomberg News. Now Michael Barr,
and this is Bloomberg, Karen.
All right, Malchael Barr, thank you time now for the
Bloomberg Sports Update. Here's John stash Hour, John, good morning.
Good morning, Karen. The night after the Yankees hit nine
home runs in Tampa, they hit five more. They came
up in the tenth inning after blowing ap three nothing
lead the Rays, tying the games, oring twice with two
outs of the bottom of the ninth. John Carlos Stanton
hit two of those night on Monday, was knot in
the lineup, but came up with a man on as
a pinch hitter drilled deep to left field, Simpson turning
looking see ya hop pinch hit two run home run
for stead up amazing head.
The Yankees lead by two. Michael, he's done it again.
I just and he is so hot and so locked
in pretty special.
Jojerari the comments on Yes, Yanks beat the Rays six'
four for their fifth win in a. Row the fourteen
home runs in a two game series tied for the most.
Ever The reds did it in nineteen ninety. Nine Aaron
boone hit one of Those cincinnati. Homers five Different yankees
had a two home run game in the series last.
Night Trent grisham And Austin Wells yankees in The Red,
sox begin the four game series tonight in The. Bronx
mets will finished the series this afternoon In. Washington nationals
blew most of a four run lead but held on
beat The mets five to. Four phillies with twenty, hits
finished the sweep Of seattle eleven to. Two Kyle schwarber
his forty fifth home run he drove in. Five The
mets trail The fields by six and a. Half colorado
roughed up Show hey O tommy beat The dodgers eight to.
Three o' tony gave up five runs nine. Hits The
dodger lead over The padres down to one. Game San
diego beat The giants eight to ONE WNBA, la a
one point win Over, dallas whose Rookie Page beckers in
the loss scored forty four points on seventeen of twenty
one Shooting giants And Patriots tonight At, MetLife where The
jets tomorrow will play The. Eagles The jets bolster their
defensive line with two, trades sending late round draft picks
To minnesota And cleveland For Harrison phillips And Jawan briggs Toor.
Championship golf te's off Today East lake In, atlanta Where
Scottie scheffler won last. Year he'll played today With rory McElroy,
Fairfield connecticut one again at The Little League World. Series
will Play saturday for THE Us. Championship Johns. Stashie We're Bloomberg,
Sports Karen.
Meathan stay with. Us more From bloomberg Day break coming
up after This.
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The Bloomberg Business. Appum this Is Bloomberg.
Daybreak good, Morning I'm Nathan. Hager President Donald trump's pressure
campaign on The Federal reserve has reached a new, level
with The president now calling ON Fed Governor Lisa cook
to resign over allegations of mortgage. Fraud Now cook says
she won't be bullied into stepping, down But Federal Housing
Finance Agency Chief Bill poulti says she could be fired for.
CAUSE i would anticipate sing or be prosecuted and criminally
charged for mortgage, fraud just based on What i've seen.
That WAS fhfa Had Bill poulti appearing On Fox news this,
morning we were joined By Bloomberg's Jill desis and of Course.
Joe we've seen the pressure for months from this, president
just over interest rates for, one then over THE fed
building renovation for. Another what to make of this latest
pressure focused in particular on this member of The fed.
Governors good, Morning.
Good, Morning. Nathan, well just as you, said this certainly
represents an escalation in this ongoing pressure campaign That trump
has really mounted against The Federal. Reserve in this particular,
case we've heard From Lisa. Cook she says she the
way that she described it was, saying you, KNOW i
have no intention of being bullied to step down from my.
Position that's the way that she certainly characterizes these allegations of. Fraud,
obviously we'll have to see how far The trump administration
is ultimately willing to push. This but if you think
about this in terms of the context of how much
Influenced trump could potentially have over the, board if he's
successful in Ousting Lisa, cook that would give him the
opportunity to potentially appoint four of the seven slots on
The board Of. Governors so that's essentially What trump may
be looking to secure long term.
Here even if that were to take, place that doesn't necessarily, guarantee,
though does it that the board would have that much
sway over rate policy from The Federal. Reserve it, is after,
all of what a thirteen Member Open Market committee.
Isn't, no you're, Right AND i think the other thing
to remember as, well is that just because an appointee
comes From Donald, trump it doesn't necessarily mean that that
person is willing to do The White house is, bidding.
RIGHT i mean when you're looking at Say trump's first term, appointees,
Right Governor Michelle, Bowman Christopher, WALLER i, mean they did
dissent against the fomc's decision In july to hold that
rate study in favor of cutting. Rates, obviously you, Know trump,
is you, know saying repeatedly that he thinks The fed
has been slow to cut. Rates but when you look
at some of these other comments that some of These
trump appointees have. Made let's Take, waller for, example he's
considered a top candidate to Replace powell as chair of
The Federal. Reserve he's spoken recently in favor of the
importance of central bank. Independence, so you, KNOW i do think,
that you, know at the end of the, day some
of these appointees are certainly individuals to be judging their own,
merits and so just because you do have that level
of influence That trump is trying to extort obviously doesn't
necessarily guarantee an outcome that maybe he is specifically looking.
For if this pressure campaign were to succeed And Governor
cook were to step, aside what could that mean For
Chairman powell's, decision as he still hasn't told us whether
he plans to step out aside from the board when
that term expires in twenty twenty.
Eight, NO i, mean you, KNOW i think that you,
know we'd ultimately have to see what, happens you, know
when we get to that. POINT i, Mean, POWELL i
think so far is you, know certainly even trying to
distress the importance of central bank. INDEPENDENCE i, mean look
at the fact that you, Know powell has faced a
pressure campaign already on you, know stepping aside As chairman
before his term expires next, year. Right you know you mentioned,
earlier you, know some of those concerns around THE fed
you're sort of building. Renovations that's been a controversy that
The trump administration has certainly tried to kick up as
reason for For powell to potentially step. Aside you, Know
powell has been you, know defended some of those, decisions
who tried to explain them and, such and so you,
KNOW i think we'd have to see once we ultimately get.
There but you, KNOW i mean he's still very much
The chairman of The Federal resort until you, know his
term expires in twenty twenty six for that particular.
Position and you have to think all this is going
to at least color somewhat the confab that's getting ready
to start within hours And Jackson, Hole.
Wyoming, yes, Certainly AND i think you, know there's two
things to really kind of look out for as we
prepare For Jackson. Hole first of, all you, know obviously
That powell speech that we're expecting On. Friday he's really
used that speech in prior years as an opportunity to
kind of hint at WHERE fed policy may be going
and thinking particularly of last year when we did get
that hint of you, know some of that cutting, cycle
or twenty twenty two when more hawkish comments you, know
certainly started up markets and you, know THE fed was
beginning its hiking. Cycle so that is an opportunity for
him to kind of telegraph some of those. Decisions whether
we get something similar this time, Around i'm not. Sure
but the other thing THAT i would point out About
Jackson hole is this is also an opportunity for other you,
know sort of central bank colleagues from around the world
to you, know kind of rally run the idea of
enforcing or encouraging central bank. Independence, remember you've got The
guard from THE ecb, Attending you've Got bailey from THE
boea from THE boj so it could be, that you,
know we also kind of see that sort of show
of support around the federal reserves independence from some of
these other central bankers as.
Well this Is bloomberg Day, break your morning podcast and
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