Trump’s Fed chair pick says he’ll maintain independence – but won’t say president lost 2020 election
Donald Trump’s nominee for US Federal Reserve chair, Kevin Warsh, faced a tumultuous hearing in Washington on Tuesday, fielding scrutiny over his wealth and his ability to operate independently of the president who appointed him,Should he be confirmed, Warsh will hold one of the most powerful roles in the US federal government, with massive influence over the global economy and the ability to move markets,During a hearing before the Senate banking committee, Warsh did his best to bat away questions that he argued verged too far into “politics”,“We need to take politics out of monetary policy and monetary policy out of politics,” he told the Senate,“If I’m confirmed, the Federal Reserve should stay in its lane.
”But Warsh’s nomination was punctured with politics long before he sat down for the hearing, something that became clear as soon as he appeared before the Senate.Warsh had particularly heated clashes with Democrats, who zeroed in on his investments and his loyalty to Trump.The Democratic senator Elizabeth Warren called Warsh Trump’s “chosen sock puppet” and said the Senate had a role in ensuring that the president doesn’t conduct an “illegal takeover of the Fed”.“It’s an invitation for corruption and economic catastrophe,” Warren said.During her questioning, Warren asked Warsh about $100m worth of assets that he disclosed last week without the specific details of some of his largest investments.
The senator asked Warsh whether the investments had any connection to “companies that are affiliated with president Trump and his family, companies that facilitated money laundering, Chinese-controlled companies, or financing vehicles set up by Jeffrey Epstein”.“It’s a yes or no question,” she said.Warsh and Warren started speaking over each other as Warsh explained that he is working with the office of government ethics and will sell his financial assets if he’s confirmed.Warren then pointed to comments Trump made last week in an interview with Fox Business when the president said that interest rates will be lowered once “Kevin gets in”.“Independence takes courage,” Warren said.
“Let’s check out your independence and your courage.We’ll start easy: Mr Warsh, did Donald Trump lose the 2020 election?”“We try to take politics out of the Federal Reserve,” Warsh said, after briefly stumbling for a response.He clarified that a point of disagreement he has with Trump is the president’s categorization of him as “central casting” – what the president says to refer to a person’s ability to appear good on the job – saying that he looks “older [and] grayer”.Warsh’s confirmation comes at a turbulent time for the Fed, which has been under attack from Trump.The justice department has an open criminal investigation into the current Fed chair, Jerome Powell, over his handling of renovations at the Fed, a move Powell has made clear he believes was meant to intimidate the central bank.
Trump also tried to fire Fed governor Lisa Cook last summer but was temporarily blocked by federal courts.Historically, US presidents have withheld public criticism of the Fed in respect to the independence of the institution.Economists widely agree that the independence of a central bank is essential for the stability of an economy.Though Republicans and Democrats are bitterly divided on their support for Warsh, his pathway to confirmation remains unclear as a Republican senator, Thom Tillis of North Carolina, said that he will block his nomination until Trump drops his investigation into Powell.On Tuesday, Tillis refrained from asking Warsh any questions, praising him for his qualifications while also emphasizing why he’s blocking his nomination.
In a makeshift presentation, with staffers holding posterboards behind him, Tillis explained the flaws of the justice department’s investigation into renovations at the Fed’s headquarters.At one point, Tillis pointed out that increased costs are “unfortunate but legitimate”.“There were a variety of reasons why this building went over budget,” he said.“If we put everybody in prison in federal government that had had a budget go over, we’d have to reserve an area roughly the size of Texas for a penal colony.”“Let’s get rid of the investigation so I can support your nomination,” he added.
Middle East war ‘could wipe out 75% of chancellor’s budget headroom’; UK inflation climbs to 3.3% – as it happened
Oil prices have gone back above $100 a barrel again.Reversing earlier declines, Brent crude is now 2.1% ahead at $100.57 a barrel, after Iran seized two ships in the strait of Hormuz, tightening its grip on the strategic waterway. Overnight, Donald Trump extended the two-week ceasefire between the US and Iran, until Tehran comes up with a peace proposal
Ryanair to close check-in 20 minutes earlier amid concern over Europe border queues
Ryanair will close airport check-in desks 20 minutes earlier to avoid passengers missing flights, it has announced, amid concern over border queues in Europe.The budget airline, which carries 200 million passengers annually, will require all passengers dropping bags or checking in at the airport to do so one hour before take-off rather than the current 40-minute deadline.Ryanair said the change, which will take effect from November, would give more time for passengers to clear airport security and passport control and reduce the number who miss flights through being stuck in queues.While the move was not prompted by the introduction of Europe’s entry-exit system (EES), which requires most non-EU citizens to provide biometric data at the border, the airline said the system had been a factor in increasing passport queues.Waits of several hours have been reported at some airports in the phased introduction of EES since October
‘Get back to work’: Amazon faces fresh scrutiny over workplace safety record
Amazon, one of the world’s largest employers, has for years faced scrutiny over its safety record. When Billy Foister, a 48-year-old worker, died after a heart attack inside one of the tech giant’s warehouses in September 2019, managers were accused of telling staff to “get back to work”.When another worker died this month at a distribution center in Troutdale, Oregon, an Amazon spokesperson claimed they had collapsed from an “existing medical issue”. They denied a report that a nearby employee was told: “Please get back to work.”As Donald Trump’s administration continues to overhaul federal government oversight of workplace safety, workers inside Amazon and labor advocates say the company’s injury rates, and how it treats injured workers, remain a problem
Anthropic investigates report of rogue access to hack-enabling Mythos AI
The AI developer Anthropic has confirmed it is investigating a report that unauthorised users have gained access to its Mythos model, which it has warned poses risks to cybersecurity.The US startup made the statement after Bloomberg reported on Wednesday that a small group of people had accessed the model, which has not been released to the public because of its ability to enable cyber-attacks.“We’re investigating a report claiming unauthorised access to Claude Mythos Preview through one of our third-party vendor environments,” said Anthropic.Bloomberg said a “handful” of users in a private online forum gained access to Mythos on the same day Anthropic said it was being released to a small number of companies including Apple and Goldman Sachs for testing purposes.It reported that the unnamed users got to Mythos through access that one of them had as a worker at a third-party contractor for Anthropic and by deploying methods used by cybersecurity researchers
‘For billionaires, not boxers’: De La Hoya warns over Ali Act overhaul in Senate hearing
A US Senate hearing on the future of boxing laid bare a sharp divide over the sport’s direction on Wednesday, as longtime boxing figures including Oscar De La Hoya warned of proposed changes that could erode fighters’ rights while executives aligned with an Ultimate Fighting Championship-backed push for a centralized model argued they would bring structure and investment.“When one system controls access, choice becomes theoretical, not real,” professional boxer Nico Ali Walsh told lawmakers, framing the stakes of a debate that could dramatically reshape boxing’s economic model. “When that happens, you fight who you’re told to fight or you don’t fight at all.”At issue is a House-passed overhaul of the Muhammad Ali Boxing Reform Act that would allow the creation of centralized “Unified Boxing Organizations” (UBOs) operating alongside the current fragmented system. Supporters say the approach would simplify matchmaking and attract investment
Lando Norris backs Max Verstappen to stay in F1 after drivers win rule changes
Lando Norris has said he believes Max Verstappen will continue to race in Formula One but that it would be “a miss” for the sport if the four-time world champion did decide to leave owing to his dissatisfaction with the way this season’s new regulations have affected how drivers race.Verstappen has been outspoken in his dislike of the new regulations and their focus on electrical energy management that now makes up almost 50% of the car’s power output. He has intimated he might leave the sport but, with the rules having been adjusted by the FIA in an effort to address concerns of all drivers this week, Norris felt the Dutchman would remain in F1.“Hopefully things get better and I just saw that he said he wants to win the fifth world championship at the minute, so I’m sure he’ll stay longer than people say,” Norris said.The McLaren driver, who is the defending world champion, noted, however, that it would very much be F1’s loss if Verstappen left because he was disenchanted
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