Why the Trump Administration Is About Set Fire to 500 Tons of Emergency Food
The publication said that previously, career staff could have handed off the biscuits to the World Food Programme to distribute them, but employees said that since Musk's so-called DOGE devastated USAID — firing and placing thousands of workers on leave — aid items cannot move without the new political leaders of the agency. And while the responsibility originally was given to Trump appointee Pete Marocco, it passed to Jeremy Lewin, who became deputy administrator for policy and programs for what's left of USAID. Staffers who sent the memos requesting approval to move the emergency food said they never got a response, however, and its unclear if either Marocco or Lewin ever received the memos.
Now, enough to feed about 1.5 million children for a week — equal to nearly 500 metric tons of emergency food — is set to expire today, The Atlantic reports. Despite Secretary of State Marco Rubio ensuring representatives on the House Appropriations Committee in May that food aid would reach its intended recipients, the Trump administration reportedly plans to spend $130,000 to burn the biscuits instead of sending them to children in need.
While improper food storage, a flood, or a terrorist group may lead to a few dozen tons of food aid being lost a year, a USAID staffer said that he has never witnessed this many biscuits wasted over his decades with the agency.
Unfortunately, USAID inventory lists from January show more than 60,000 metric tons of food already purchased by the U.S. government are sitting in warehouses across the world including 36,000 pounds of peas, oil, and cereal. A former senior official at USAID's Bureau for Humanitarian Assistance told The Atlantic that when she left her job earlier in July, only a small portion of the food appeared to have moved, while a current employee said small shipments are starting to leave a warehouse in Djibouti. However, given that USAID has been gutted of key employees essential to coordinating and distributing the food to people across the world, whether those parcels will land in the right hands is uncertain.
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Yahoo
21 minutes ago
- Yahoo
Investors become inured to policy whiplash, Powell headlines cause limited reaction
By Saqib Iqbal Ahmed NEW YORK (Reuters) -Investors are becoming more measured in their reaction to news about Trump's Washington policy, with Wednesday's whipsawing headlines over Federal Reserve Chair Jerome Powell triggering a reaction that fell short of what could happen if the Fed chair was indeed fired. The S&P 500 briefly fell as much as 0.7% and the dollar sank 0.9% on Wednesday following reports Trump was close to firing Powell. To some investors, the initial knee-jerk moves - soon to be unwound as Trump denied he was planning Powell's ouster from the Fed - seemed relatively shallow and pointed to investors being unwilling to put too much stock in headlines involving Trump administration policy. Part of the reason for the market's reaction is that investors have learned from experience that news headlines about potential actions by the Trump administration can change rapidly, market participants said. "I think there is a group of people who thought it was a trial balloon," Thierry Wizman, global FX and rates strategist at Macquarie in New York, said. "That it was not serious, that it was just Trump testing the market and that if the market fell too much, he would change his view in any case so there's no reason to bid stocks down excessively," he said. The White House declined to comment on whether Trump was testing the market, instead pointing to his remarks earlier in the day where he said he is not planning to fire Powell even as he unleashed a fresh round of criticism against the central bank chief and declined to completely reject the possibility of ousting him. Trump, who in the past has suggested he could fire Powell, has also at various times said he would not do so. Bloomberg News, which first reported Trump was planning to fire Powell soon, did not immediately respond to a request for comment. "We don't know if Trump will follow through on the threat," Brian Jacobsen, chief economist at Annex Wealth Management, said. The many twists and turns in U.S. tariff policy since the start of the year have already inured investors to abrupt changes in policy. "Traders and investors have learned to take political posturing with a grain of salt," said Karl Schamotta, chief market strategist at Corpay. The limited reaction, especially in stock markets, also points to some investors seeing Powell's potential ouster as clearing the path for rate cuts, some analysts said. "There is an element of the market that wants to see lower rates in the short term ... they're happy to have the Fed cut," Wizman said. Worries over the Fed's independence notwithstanding, lower rates would reduce borrowing costs for companies, potentially encouraging investment and boosting corporate profits, while also making stocks relatively more attractive compared to lower-yielding bonds and savings. "Perhaps there are some traders who like the idea of lower rates more than the loss of independence," Steve Sosnick, chief strategist at Interactive Brokers, said. 'MINI-TANTRUM' Still, market participants warned that Wednesday's market gyrations, fleeting as they were, offered a glimpse on how global financial markets might react should Powell be ousted. "This morning's mini-tantrum provided the administration with a clear warning of the negative consequences," Schamotta said. "Today's episode provided a tiny taste of the cataclysmic moves that could unfold if the Trump administration actually moved forward with untethering the world's monetary anchor," he said. Investors had been on edge for weeks about the prospect of Powell being removed from his job before his term ends next May, as Trump has repeatedly criticized him for not cutting U.S. rates quickly enough. Even if Trump doesn't fire Powell, just nominating a successor - something Trump has said he is considering - would trouble the market, investors said. The nomination of the next Fed Chair so far in advance of the end of Powell's term would create the likelihood of a "shadow" Fed chair who offers potentially clashing views with the sitting central bank leader on monetary policy. This could potentially sow confusion in the market about the outlook for monetary policy, investors said. Such threats to the Fed's perceived independence could push investors to lighten exposure to dollar-denominated assets and revive the worries about investing in America that surfaced earlier this year when Trump first slapped hefty tariffs on global trading partners, strategists said. "This is part and parcel of the thing we've already been growing accustomed to," Macquarie's Wizman said. "It's a theme that has weakened the dollar since the beginning of the year. It's a theme that has caused long-term yields to go up," he said. For now, investors remain on edge about whether Trump will end up firing Powell. "Trump in particular seems to take umbrage at the idea that he doesn't follow through on some of these things. So it wouldn't surprise me if they did. It wouldn't surprise me if they didn't," said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 minutes ago
- Yahoo
Stocks End Higher Despite Uncertainty About Possible Powell Firing
The S&P 500 Index ($SPX) (SPY) on Wednesday closed up +0.29%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.47%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.12%. September E-mini S&P futures (ESU25) rose +0.33%, and September E-mini Nasdaq futures (NQU25) closed up +0.11%. Stocks ended the day higher after President Trump denied that he intends to summarily fire Fed Chair Powell, although he left open the possibility of firing him for cause. Stocks temporarily dropped during midday after reports circulated that Mr. Trump had told Republican House members that he met with on Tuesday that he wanted to fire Mr. Powell. 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Wednesday's June PPI report was favorable, as both the month-over-month and year-over-year figures were better than expected, suggesting that tariff inflation has not yet hit the producer level. The PPI report sparked some inflation optimism after Tuesday's mixed CPI report. Specifically, the June final-demand PPI was unchanged m/m and +2.3% y/y, which was weaker than expectations of +0.2% m/m and +2.5% y/y. The June core PPI report of unchanged m/m and +2.6% y/y was weaker than expectations of +0.2% m/m and +2.6% y/y. The year-over-year figures of +2.3% (nominal) and +2.6% y/y (core) were down from the revised May figures of +2.7% and +3.2%, respectively. Wednesday's June US industrial production report of +0.3% m/m was slightly stronger than market expectations of +0.1%, and May was revised higher to unchanged from -0.2%. The June US manufacturing production report of +0.1% m/m was slightly stronger than expectations of unchanged. The July New York Fed services business activity index rose to -9.3 from -13.2 in June. The Fed's Beige Book survey of the US regional economies showed that US economic activity "increased slightly between late May and early July." The report said, "That represented an improvement over the previous report, in which half of the districts reported at least slight declines in activity." The report added, "Uncertainty remained elevated, contributing to the ongoing caution by businesses." Regarding inflation, the Beige Book stated that all districts reported price increases, with businesses experiencing "modest to pronounced input cost pressures related to tariffs." The report added, "Many firms passed on at least a portion of the cost increases to consumers through price hikes or surcharges, although some held off raising prices because of customers' growing price sensitivity, resulting in compressed profit margins." Expectations for Fed policy ended the day little changed after some movement on the Powell news. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 58% at the following meeting on Sep 16-17. Bitcoin (^BTSUSD) rallied +2.3% on Wednesday, overcoming part of Tuesday's -3.3% decline. Bitcoin rose after President Trump said he talked right-wing House Republicans into supporting the stablecoin bill the House is considering, although House Speaker Johnson still couldn't get a procedural vote approved by late afternoon. Bitcoin has rallied sharply in the past several weeks, driven by hopes for favorable crypto regulation from Washington. On the trade front, President Trump said Wednesday that he intends to send a tariff letter to more than 150 countries, giving the entire group the same tariff. He said that group wouldn't be the "big" countries. Recent trade and tariff news has been mixed. There was some positive trade news Tuesday after Treasury Secretary Bessent said that US-China trade talks are in a "very good place" and told market participants "not to worry about August 12," the deadline for US-China trade talks. There was also some positive trade news on Tuesday after President Trump announced that his administration had reached a trade deal with Indonesia. However, stocks were undercut by negative trade news that emerged last week and during this past weekend. Over the weekend, President Trump announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. Mr. Trump said last Thursday that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Last week, Mr. Trump imposed a 50% tariff on copper imports, which will include semi-finished goods, and stated that drug companies could face tariffs as high as 200% on imports if they don't relocate production to the US within the next year. The markets will focus on any fresh news regarding tariffs or trade deals during the remainder of this week. On Thursday, June retail sales are expected to climb by +0.1% m/m and +0.3% ex-autos, and weekly initial unemployment claims are expected to climb by +7,000 to 234,000. Also, on Thursday, the July Philadelphia Fed business outlook survey is expected to climb +3.0 points to -1.0, and the July NAHB housing market index is expected to rise +1 to 33. On Friday, June housing starts are expected to climb +3.3% m/m to 1.298 million, and June building permits are expected to slip -0.6% m/m to 1.386 million. Also, the University of Michigan's US July consumer sentiment index is expected to climb +0.8 to 61.5. Earnings season began in earnest this week with a focus on big bank earnings results. The consensus is for S&P 500 companies to show Q2 earnings growth of +2.8% y/y, the smallest increase in two years, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research. Overseas stock markets today are lower. The Euro Stoxx 50 closed down -1.05%. China's Shanghai Composite closed down -0.03%. Japan's Nikkei Stock 225 closed down -0.04%. Interest Rates September 10-year T-notes (ZNU25) rose +10.5 ticks. The 10-year T-note yield fell -3.2 bp to 4.449%. Bullish factors included the favorable PPI report and some safe-haven demand amidst the latest tariff threats. Bearish factors included the stronger-than-expected US industrial production and Beige Book reports, and the +1.0 bp rise in the 10-year inflation expectations rate to 2.424%. The short end of the Treasury curve saw some temporary support from reports that President Trump wants to fire Fed Chair Powell, which could result in a near-term cut in the Fed's federal funds rate target range by Powell's replacement. However, the long end of the Treasury curve would view a Powell firing as a bearish development due to the inflation risks of a politically driven central bank potentially pursuing artificially low interest rates. European government bond yields ended mixed. The 10-year German bund yield fell -2.4 bp to 2.687%. The 10-year UK gilt yield rose +1.4 bp to 4.639%. Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the July 24 policy meeting. US Stock Movers The Magnificent Seven stocks closed mixed, with four gainers and three losers. The largest movers were Tesla (TSLA), with a gain of more than +3.5%, and Amazon (AMZN), with a loss of -1.4%. Wall Street firms reported generally positive results early Wednesday. Goldman Sachs (GS) ended the day up +0.9% after reporting a Wall Street record of $4.3 billion of equity-trading revenue. Also, management fees in asset and wealth management rose +11% y/y. Bank of America (BAC) closed the day down -0.3% despite reporting that its trading division posted a record quarter and that net interest income was better than expected. Morgan Stanley (MS) ended the day down -1.3% despite reporting strong equity-trading income and boosting net new assets in its wealth management division. ASML (ASML) fell more than -8% after issuing cautious guidance for next year. The report dampened enthusiasm for the chip sector, which generally turned lower after Tuesday's rally on optimism about the Trump administration's move to loosen some chip sale restrictions to China. Micron Technology (MU) closed down more than -3%, while Marvell Technology (MRVL) and Applied Materials (AMAT) closed down more than -2%. Cryptocurrency-exposed stocks traded higher after bitcoin (^BTCUSD) rallied +2.3% on the improved prospects for House passage of a crypto bill supported by the industry and the White House. Riot Platforms (RIOT), Mara Holdings (MARA), and Strategy (MSTR) closed up more than +3%. Johnson & Johnson (JNJ) rallied more than +6% after raising its full-year sales guidance for the year and reporting better-than-expected Q2 earnings and revenue. Earnings Reports (7/17/2025) PepsiCo Inc (PEP), Travelers Cos Inc/The (TRV), Abbott Laboratories (ABT), Elevance Health Inc (ELV), Cintas Corp (CTAS), Marsh & McLennan Cos Inc (MMC), US Bancorp (USB), Snap-on Inc (SNA), General Electric Co (GE), Citizens Financial Group Inc (CFG), Fifth Third Bancorp (FITB), Netflix Inc (NFLX). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. 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Axios
22 minutes ago
- Axios
Trump says Coca-Cola has agreed to use real cane sugar in Coke
President Trump said Wednesday that Coca-Cola has agreed to use "REAL Cane Sugar in Coke in the United States." Why it matters: The beverage giant has been under pressure to reduce sugar in its drinks. The company currently uses high fructose corn syrup in the original soda recipe, according to its website. What they're saying: Trump said he's been speaking with the Atlanta-based company about using cane sugar, which it does in its Mexican Coke. " I'd like to thank all of those in authority at Coca-Cola. This will be a very good move by them — You'll see. It's just better!" Trump wrote on Truth Social. Zoom in: Coca-Cola CEO James Quincey told investors in April that "we continue to make progress on sugar reduction in our beverages." He noted that the company has "done this by changing recipes as well as by using our global marketing resources and distribution network to boost awareness of and interest in our ever-expanding portfolio." The company did not immediately respond to a request for comment on Wednesday.
