Himes: White House warning of ‘massive market reaction' if Trump fires Powell
'I mean, what happens if there's a tweet that says the Fed chair is gone?' CBS's Margaret Brennan asked Himes on 'Face the Nation.'
'Well, interestingly, inside the White House — and I don't know who it is — my guess is, it's maybe the Treasury secretary — is saying — and this is a very difficult thing to say to a person like Donald Trump — that, if you fire the Fed chair, either illegally, which they're happy to do, or because you trump up some baloney-like charge associated with a renovation of the headquarters, there is going to be a massive market reaction, because you cannot lie to the capital markets,' Himes responded.
Trump has recently grasped on to the Federal Reserve's multibillion-dollar makeover as a possible way to finally oust Powell.
The president has for months criticized Powell over the Fed's decision not to cut interest rates, a move partly based on uncertainty surrounding Trump's tariffs. Trump has stated his desire to remove Powell, whom he appointed during his last term in the White House.
Senate Republicans have recently warned Trump that it would be a large mistake to go forward on his threat to fire Powell, saying it would probably send a 'shock wave' through the financial markets and rattle the larger economy.
Republican senators, including those who are strong supporters of the president, have warned that any action to oust Powell would jeopardize the Fed's independence, which could erode investors' confidence in American monetary policy and creditworthiness.
'I do not believe a president, any president, has the authority to fire the Federal Reserve chair,' Sen. John Kennedy (R-La.) said previously.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
7 minutes ago
- Newsweek
Donald Trump Reacts to Finding Out Sydney Sweeney is a Republican
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. US President Donald Trump has thrown his support behind embattled actress Sydney Sweeney upon finding out that the star is a registered Republican. The Euphoria star has been embroiled in a furor over her appearance in an advertising campaign for denim brand American Eagle, after its wordplay with "jeans" and "genes" sparked allegations of racism. Trump was asked for his thoughts by a reporter who questioned him about news that emerged this weekend, revealing that Sweeney was a registered member of the Republican party in Florida after signing up in June last year. "She's a registered Republican? Oh, now I love her ad!" Trump says, in a video clip of the encounter as he's questioned by reporters. Actress Sydney Sweeney attends the premiere of "Eden" during the 2024 Toronto International Film Festival at Roy Thomson Hall on September 7, 2024, in Toronto, Canada. Actress Sydney Sweeney attends the premiere of "Eden" during the 2024 Toronto International Film Festival at Roy Thomson Hall on September 7, 2024, in Toronto, Canada. Emma McIntyre/WireImage He then appears to double-check Sweeney is the actress behind the ad he's thinking of, saying: "Is that right, is Sydney Sweeney...?" The reporter replies, "Yeah!" The president then laughs and adds: "You'd be surprised at how many people are Republicans. That's what I wouldn't have known. But I'm glad you told me that. If Sydney Sweeney is a registered Republican, I think her ad is fantastic!" Newsweek is attempting to reach out to representatives for Sweeney for comment. This is a developing story.
CNBC
7 minutes ago
- CNBC
Nvidia's set to regain some China access. But it still faces eroding AI chip market share
Nvidia's H20 chips are likely to return to China, but tech experts don't expect them to be met with the same fanfare in the market in light of new competition and regulatory scrutiny. The Trump administration last month gave Nvidia assurances that it would be permitted to resume sales of its H20 chips to China, after their exports had been effectively banned in April. It also announced a new "fully compliant" made-for-China chip. The move was seen as a huge win for the company, which had flagged billions in losses due to the policy. But while the H20s might be returning to the Chinese market that doesn't mean Nvidia will regain its former market share, analysts caution. In a recent report, global equity research and brokerage firm Bernstein forecast that Nvidia's AI chip market share in China would drop to 54% in 2025, from 66% the year prior. This drop is only partly owed to complications with resuming chip supply, as Chinese AI chipmakers have been seizing more of the booming domestic market. "U.S. export controls have created a unique opportunity for domestic AI processor vendors, as they are not competing with the most advanced global alternatives," Bernstein's report said, noting growing prominence of Chinese players such as Huawei, Cambricon and Hygon. "The localization ratio of China's AI chip market will surge from 17% in 2023 to 55% by 2027." Other analysts such as The Futurum Group CEO Daniel Newman were more bullish about Nvidia's bounce back in China. However, he also flagged potential market share erosion from Nvidia customers that might have found success with Chinese rivals while the H20 controls were in place. It's also worth noting that Bernstein's predictions assume that broader U.S. chip restrictions will remain largely unchanged. That creates a dynamic where Chinese companies continue to develop and offer advanced chips, possibly eroding demand for outdated U.S. offerings. Ahead of rolling back the H20 restrictions, Nvidia CEO Jensen Huang had been lobbying for more access to China, claiming export controls were inhibiting U.S. tech leadership. While Trump administration officials had said the rollback was part of trade negotiations, analysts have echoed Nvidia's basic argument that chip controls for the China market should be eased, thereby creating more dependency on U.S. tech offerings. "The assumption is that by keeping U.S. technology companies in the China game, the U.S. can preserve and even grow its geopolitical leverage," Reva Goujon, director at Rhodium Group, told CNBC. In a report last month, Rhodium Group said that this logic may see the administration shift to a "sliding scale" approach to export restrictions that could allow U.S. chipmakers greater access to China as Huawei and other Chinese chipmakers continue to upgrade. However, while Chinese AI developers will be happy to have increased access to Nvidia chips, Beijing isn't expected to slow its efforts to steer companies toward homegrown AI infrastructure, according to Goujon. She noted that the Cyberspace Administration of China's recent summons to Nvidia was an obvious signal of the state's intention to intervene in the local AI infrastructure market. According to the Cyberspace Administration of China, Nvidia met with Beijing officials on Thursday regarding national security concerns posed by the H20 chips, including potential backdoors that would allow parties in the U.S. to access or control them. Beijing's move appeared to come in response, at least partially, to new laws proposed in the U.S. that would require semiconductor companies such as Nvidia to include security mechanisms and location verification in their advanced AI chips. Nvidia later denied that its chips have any "backdoors" that would allow external access or control. The move by Beijing was also likely an attempt to create some hesitation among Chinese AI developers looking to buy the new H20s, according to Futurum's Newman. "China wants to leave some levers in place to potentially restrict outside AI chips at some point down the line if and when it feels its homegrown technology is truly competitive," Newman said. Beijing has previously restricted American chipmakers' business in China amid periods of intense technology and trade tensions between the two countries. Micron Technology, for instance, failed a cybersecurity review in 2023 and was subsequently blocked from critical IT infrastructure. "The continued complexity of China-U.S. trade relations could bring further complications [for Nvidia] as negotiations continue and as China attempts to cement its own AI strategy," Newman added.
Newsweek
7 minutes ago
- Newsweek
Greg Abbott Threatens to Expel Texas Democrats as They Thwart Redistricting
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Texas Governor Greg Abbott has threatened to remove "derelict Democrats" from the state's House of Representatives if they fail to return by Monday afternoon. The threat came after numerous Texas Democrats left their home state and traveled to Illinois in an effort to prevent the state legislature from holding a vote that would approve Republican-backed redistricting maps. In a letter to the Democrats, Abbott wrote: "Real Texans do not run from a fight. But that's exactly what most of the Texas House Democrats just did... rather than doing their job and voting on urgent legislation affecting the lives of all Texans, they have fled Texas to deprive the House of the quorum necessary to meet and conduct business." Why It Matters Abbott's threat intensifies the face-off over Republican efforts to redraw the districting map in Texas to bolster the party's chances of retaining the U.S. House of Representatives in the 2026 midterm elections. Republicans in other states facing significant battleground contests have looked to follow a similar path. Republicans have slim majorities in both the U.S. House and Senate, giving Democrats hopes of retaking at least one of the Houses of Congress in next year's elections. Governor Greg Abbott speaking in Kerrville, Texas, in July. Governor Greg Abbott speaking in Kerrville, Texas, in July. Jacquelyn Martin/AP What To Know Abbott said in his statement that the Texas Democrats' absences were "premeditated for an illegitimate purpose... the specific purpose of abdicating the duties of their office and thwarting the chamber's business." He said their action amounted to "an abandonment or forfeiture of an elected state office." He added: "This truancy ends now. The derelict Democrat House members must return to Texas and be in attendance when the House reconvenes at 3.00 p.m. on Monday. "For any member who fails to do so, I will invoke Texas Attorney General Opinion No. KP-0382 to remove the missing Democrats from membership in the Texas House." More than 51 Democratic members of the Texas House left the state on Sunday, aiming to deny the chamber a quorum and prevent passage of the proposed Republican map before a scheduled floor vote. The Texas House requires the presence of at least 100 of its 150 members to conduct business. With only 62 Democratic members in the chamber, their collective absence can halt legislative proceedings. Abbott had called a special session to address the flooding that killed 135 people last month in Texas Hill Country and the redistricting plan. Texas House Democrats join Illinois Governor JB Pritzker in Carol Stream on Sunday. Texas House Democrats join Illinois Governor JB Pritzker in Carol Stream on Sunday. Mark Black/AP Democrats have argued that if Republicans succeed in redrawing the Texas districts, Trump will push other states to do the same. Speaking in Chicago on Sunday, Texas House Democratic Caucus chair Gene Wu said: "We're not here to play political games. We're here to demand an end to this corrupt process. Today is the day this corruption ends. "If Donald Trump is allowed to do this, once again cheat and get away with it, there's no stopping this, it will spread across the country... and rip it apart." Illinois Governor J.B. Pritzker, a Democrat, said that the Texas Democrats had no choice but to leave their state to block the vote "and protect their constituents." "Let's be clear, this is not just rigging the system in Texas. It's rigging the system against the rights of all Americans for years to come," he said. What People Are Saying Abbott said in his statement: "In addition to abandoning their offices, these legislators may also have committed felonies. Many absentee Democrats are soliciting funds to evade the fines they will incur under House rules. Any Democrat who "'solicits, accepts, or agrees to accept' such funds to assist in the violation of legislative duties or for purposes of skipping a vote may have violated bribery laws. See TEX. PENAL CODE § 36.02. "The same could be true for any other person who 'offers, confers, or agrees to confer' such funds to fleeing Democrat House members. I will use my full extradition authority to demand the return to Texas of any potential out-of-state felons." Texas Attorney General Ken Paxton wrote on X: "Democrats in the Texas House who try and run away like cowards should be found, arrested, and brought back to the Capitol immediately. We should use every tool at our disposal to hunt down those who think they are above the law." The Texas House Democratic Caucus said in response to Abbott's threat: "Come and take it." Colin Allred, a former Democratic Senate candidate for Texas, said in a statement:"Texas House Democrats just did what this moment demands — they broke quorum to stop a blatant power grab. This wouldn't have happened without the thousands of Texans who showed up, testified, and refused to be ignored. You gave them the strength to act. "This fight isn't just about maps — it's about power. When Republicans silence Black and Latino voters, they're not just rigging elections. They're rigging who gets health care, clean water, and a fair shot. "Let's be clear: they don't just want to rig the vote. They want to use that power to rig the economy — to keep helping the wealthy and well-connected while working families get left behind." What Happens Next Texas Republicans are attempting to find legal means of passing the proposed redistricting maps, though that may lead to a drawn-out legal battle. The U.S. Supreme Court is already reviewing a dispute over redistricting in Louisiana, and earlier this year overturned a lower court's decision that ruled South Carolina's congressional map as unconstitutional.
