Bessent Calls for Fed Building Review; Stocks at All-Time Highs

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.
Karen, we begin with new developments surrounding j Powell and
the Federal Reserves building renovations in Washington. Treasury Secretary Scott
Bessant is the latest Trump administration official to pile on.
We get the very latest now from Bloomberg's John Tucker.
Good morning, John, and good morning. Nathan Besson says in
a social media post there should be a review of
the decision to renovate parts of the Federal Reserve headquarters
in Washington. He also says the FED should conduct what
he calls an exhaustive internal review of its non monetary
policy operations. Well, this is just the latest salvo in
the Trump administration's relentless attack on the FED and its leader,
Jerome Powell, mostly for refusing to bend to the President's
will and lower interest rates. The probe into the headquarters
run of ev which is now more than seven hundred
million dollars over budget, as stoke speculation it could provide
a way for Donald Trump to fire Powell. Cost overruns
for federal buildings in Washington are hardily unusual a lesser
known Trump ally. Meantime, congress Woman Elena Paulina has also
jumped into the frey, urging the Justice Department to investigate
Power for allegedly misleading Congress about the cost overruns, even
though there's no evidence of a wrongdoing. In New York time,
John Tucker Bloomberg Radio, all.
Right, John, thank you, Bills. Investors wait to see how
the whole Powell saga plays out. Stocks continue to reach
new heights. The S and P five hundred closed and
get another record high yesterday. Wells Fargo's top US secrety strategist,
Christopher Harvey says he expects the S and P five
hundred to deliver another double digit increase in the second
half of the year.
What we're seeing is the winners continue to win. The
ubercap companies have the higher margins, are gaining more market share.
There is a real secular trade in AI that will
continue here during the nineties. This is not this is
not a fair comparison. It is much stronger and the
fundamentals are much better than today than they were back there.
Harvey is the most bullish strategist tracked by Bloomberg forecasting
the S and P five hundred will climb above seven
thousand by the end of the year. It closed yesterday
adjust over six thousand, three hundred for the first time, and.
Karen Chris Harvey is not the only one bullish on
US equities. A cohort of the world's largest asset managers
is leaning harder into the risk asset rally. Firms such
as Invesco, Fidelity International, and JP Morgan Asset Management are
reinforcing bullish bets across technology shares from the US to Asia,
as well as on emerging market assets. The high octane
wager is that while President Trump is threatening to disrupt
the economic world order, he will step back from the brink.
Nathan Ernie's continue to roll in with more than thirty
combination in the S and P five hundred reporting today,
among them General Motors, so we get a preview from
Bloomberg's Tom.
Busby GM is likely to report vehicle sales and market
share in the US group during the second quarter, with
a lot of help from evs at lower priced models
like the Chevy Equinox small suv. The automaker also likely
to stress the biggest hit this year to its bottom
line from President Trump's twenty five percent tariffs on imported
cars and autoparts. GM stated previously it expects upwards of
five billion dollars in tariff impact this year, a third
of which it plans to offset through cost cutting moves.
Bloomberg consensus calls for revenue of forty six point two
seven billion dollars on adjusted ernings per SHAREFF two dollars
thirty three cents. Tom buzzby Bloomberg Radio.
Tom thanks as the US impost deadline on tariff deals
draws closer. Commerce Secretary Howard Ludnik met for more than
two hours yesterday in Washington with Japan's chief trade negotiator.
Barring a deal, Universe Sold tariffs on Japan's exports to
the US are set to rise to twenty five percent
on August first. That's up from the baseline ten percent
and an original twenty four percent.
Duty Well Nathan. Microsoft is still trying to stop hackers
wreaking global havoc after they exploited a flaw in the
firm's software. Over the week, Microsoft release to fix for
the vulnerability, and servers of the SharePoint document management software
but see they're still working to repair other parts of
the system. According to cybersecurity researchers, the flaw was used
to break into the file systems of national governments in Europe,
the Middle East, and the US.
Karen Blackrock is restricting the use of company devices in China.
In an internal memo seen by Bloomberg News, the world's
largest asset manager told staff to use temporary loaner phones
and not to bring company laptops to China on business trips.
The changes come with growing jitters around business travel to
China US China. Geopolitical tensions are weighing on global financial firms.
Now, Nathan to the latest on the Jeffrey Epstein case.
Its starting to affect legislative business on Capitol Hill. Democrats
on the House Rules Committee used a hearing on several
Republican bills to call for amendments releasing files on the
child sex offender. That forced Republicans to call off the
hearing indefinitely, and it could mean the House heads into
its summer recess Early. At the White House Press Secretary
carolineae it was asked why President Trump has not called
for a full release of the Epstein files.
The President has said if the Department of Justice and
the FBI want to move forward with releasing any further
credible evidence, they should do so. As to why they
have or have not or will, you should ask the
FBI about that.
Meanwhile, the White House says it will remove the Wall
Street Journal from the small group of reporters who will
be traveling with President Trump on a trip to Scotland
later this month. The President is suing the paper over
a port that he gave Epstein a suggestive birthday letter
more than twenty years ago.
In other media news this morning, Karen billionaire Patrick soon
Chang is planning to take the Wall of the Los
Angeles Times public over the next year. Soon Chung told
John Stewart's The Daily Show he will allow the public
to have ownership of the paper if an initial public
offering goes ahead. The LA Times to join the New
York Times and News Corporation among the largest publicly traded
news organizations.
And Nathan Stephen Colbert appeared on his first alleged show
since CBS announced it's canceling the program contract runs out
in May. He used his opening monologue to declare the
gloves are off against President Trump and CBS parent company
Paramount Global over the weekend.
Somebody at CBS followed up their gracious press release with
a gracious anonymous leak, saying they pulled the plug on
our show because of losses pegged between forty million and
fifty million dollars a year. Forty million is a big number.
I could see us losing twenty four million dollars. But
where would Paramount have possibly spent the other sixteen million?
Oh yeah, oh.
Stephen Colbert's reference there to Paramount sixteen million dollars settlement
with President Trump over his sixty minutes interview he claimed
was deceptively edited. The comedian also responded to the President's
truth social posts that he absolutely loved that Colbert got
fired with an expletive. Time. Now for look at some
of the other stories making news in New York and
around the world, And for that we're joined by a Bloomberg.
So Michael Barr, Good morning, Karon. A federal judges sentenced
an ex Kentucky police officer to thirty three months in
prison for using excessive force during the twenty twenty deadly
Breonna Taylor raid. The judge declined a US Justice Department
recommendation that he should serve just one day. Brett Hagenson,
who fired ten shots during the raid but didn't hit anyone,
was the only officer on the scene charged in the
black woman's death. He is the first person sentenced to
prison in the case that rocked the city of Louisville.
Ben Crump is the Taylor family attorney. We had the
out of fighting with this family for five years now
to get equal justice, ben Crump says, even though the
family thought Hankinson should have gotten more prison time, they
are grateful. New York City former interim police Commissioner Thomas
Dunlin has filed a ten million dollar defamation claim against
Mayor Eric Adams for reportedly suggesting he was mentally unfit
for the job of top cop. The filing comes less
than a week after Donlan sued Adams and his top deputies,
accusing them of operating the department as a criminal racket
that punished whistleblowers. A spokesperson for Adams dismissed the allegation
as yet another frivolous attempt to seek compensation at the
taxpayer's expense. The Pentagon has ordered the US Marines to
leave Los Angeles after more than a month in the city.
The departure of the seven hundred Marines, first deployed on
June ninth during protests against the administration's immigration policies comes
to days after the military reduced the presence of the
National Guard. Mayor Karen Bass says she appreciates the sacrifices
the National Guard soldiers are making, but says there needs
to be priorities.
We need the.
National Guard to assist us in prepare for fire season,
not for an inappropriate deployment where they are just guarding
a building that is.
Not under attack.
Tributes continue to come in for actor Malcolm Jamal Warner,
who played Theo Huxtable on The Cosby Show Police A.
Warner died in an accidental drowning off Costa Rica's Caribbean coast,
where he was on the family vacation. Malcolm Jamal Warner
was fifty four Global News twenty four hours a day
and whenever you want it with the Bloomberg News Now
Michael Barr and this is Bloomberg. Karen.
All right, Michael Barr, thank you time now for the
Bloomberg scores update. Here's John Stashawer, John Good morning, Good.
Morning, Karen. The Yankees went to Toronto three weeks ago,
gave up thirty six runs, lost all four games, and
that's why in their return they trailed the Blue Jays
by three games. They scored first, fourth inn first, Pittstright
the deep left, that's hit well going back, Snyder running out.
Of room, goodbye.
To the bullpen, Big je jaed.
Carlos Stanton Gibbs the Yankees on one nothing lead leading off.
The four on WFM. That was the Yankees' only run.
They had only four other hits. Toronto scored four times.
In the fifth of OBUs. She had two run double
and then consecutive throwing errors by the left side of
the Yankee infield. That's well Parronza and Anthony Volpi, who
leads the league in airs the Blue Jays one four
to one. At Diddy Field, Mets trailed the Angels four nothing,
five to two, and the seventh the Juan So two
runs single tied the game. In the eighth, big double
by Francisco Alvarez just back to the miners. Mets head
runners at second and third.
They bring the left hander Brock Burke into pitch and
Carlos Mendoz is gonna stick with Ronnie Maurisio. He's three
for twenty six against left handers.
Garret the infield's in. Ronnie pulls one to third, crabbed
on to hop the front, he gets away.
Kadi scored Toprez will stop the third.
Why have the Mets take the lead at the bottom
of the.
Eighth mess and why they scored again one seven to
five the go ahead run, scoring in a play at
the flight after granded a third in the eighth, just
as was the case in the win Sunday over Cincinnati.
And that's still trail the Phillies by a half game.
The Phills meet the Red Sox three to two on
a walk off catchers interference call ten and a first
time a game has ended like that since nineteen seventy one.
The Nationals top the Reds ten to eight, eleventh win
in a row for now first place Milwaukee six nothing
at Seattle. Chris Paul says his twenty first season in
the NBA will likely be his last. At age forty,
he signed with the LA Clippers. Katelin Clark still has
the groin injury, won't play for Indiana in Brooklyn tonight
against The Liberty, John Stashedware, Bloomberg Sports.
Karen and Nathan.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager, and there is little letup this morning
to the Trump Administration's pressure on the FED and Chair
Jerome Powell. Treasury Secretary Scott Bessant is now among those
calling for a full review at the Central Bank, with
a focus on its two and a half billion dollar renovation.
The White House spokeswoman Caroline Levitt says President Trump's pressure
on Powell will only go so far.
He has no plans to fire the FED chair, but
he has been very transparent and expressing his displeasure with
Jerome Powell's management of the FED and also his policies.
White How spoke something Caroline Levit joining us this morning,
Terry Haynes, the founder of Pangaea Policy. Terry, it's great
to speak with you. In Secretary besson social media post
calling for this review, he said, quote, significant mission creep
and institutional growth have taken the FED into areas that
potentially jeopardize the independence of its core monetary policy mission.
What do you make of this angle of the pylon
that we're seeing on Chairman Powell?
Good morning, Hi, Good morning Nathan. A couple of things.
One is that you know, I'm I'm a big believer
that Pale stays, and I told markets last week seven
reasons why that was the case. And on top of it,
I find Besson Besson's doing here interesting because Besson is
not going after, as he said, the core monetary policy
functions of the FED. He's looking at the FED as
a kind of the standard regulatory stuff that the FED does.
And you know, it's entirely it's entirely appropriate for the Congress,
the President to be looking at those functions, and it's
entirely appropriate to want to try to figure out how
they can best make the FED focus on its core mission.
I look at it as a little less meddling, but
at root, it's still the same kind of irritant that
won't get Trump anywhere, because you know, fundamentally, what we're
trying to do here is move blame from Trump onto
Powell for the stubbornness of inflation.
This kind of review that Secretary Beston is calling for
sounds like the kind of thing that could linger into
the next Federal Reserve chairman. Do you expect something like
that to fall on the plate of whoever President Trump
appoints next.
Oh, I do expect that. Firstly. Secondly, I think it's overdue.
It's been a quarter of a century or more since
the FED has undertaken a real serious, uh look at
exactly what it does comprehensively and how it does. And thirdly,
I'll point out at least some candidates, former Governor worsh
that comes to mind first, have been calling for exactly
that kind of revamp.
Congresswoman Republican Anna Paulina Luna has called for a criminal
referral for FED Chairman Powell over his testimony about the renovation.
Do you see that going anywhere?
I don't. I think it's unserious. Pale you know her.
The core of Luna's concern is, allegedly is Palell committing
perjury in front of the committee on the renovations. If
you look at the statements that she cites and the context,
there's absolutely no basis for that. I think this is
not legal advice, but there isn't any basis for it,
and I think it frankly backfires on Luna and on Trump,
particularly if the Justice Department investigates they find nothing. If
they refuse to investigate, Luna looks foolish. So either way,
it's a bad look.
In our last minute, Terry, it looks like the Jeffrey
Epstein case is affecting policymaking on Capitol Hill, with this
House Rules Committee hearing getting stalled over Democrats calling for
a full release of the Epstein files. Where do you
see this going?
Well, I see people. First of they're all going to
riga national to get flights as quickly as possible. Secondly,
I think they've tied themselves into knots on this, and
Congress at Congress is good at tying itself into knots.
But I think what ends up happening is basically they're
going pencils down for the August recess with the idea
that BONDI or somebody's going to be able to release
a lot of files. And when they release a lot
of files, it takes the political pressure off the warring
side of the House.
This is Bloomberry Daybreak, your morning podcast on the stories
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