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Politico
a day ago
- Business
- Politico
Warren defends a former foe
FRIEND OR FOE — Sen. Elizabeth Warren has long been a fierce Jerome Powell critic. But as his future atop the country's central banking system teeters, she's increasingly become one of the Federal Reserve Board chair's staunchest defenders. President Donald Trump has flirted with the idea of firing Powell, ostensibly over an expensive renovation to the Federal Reserve building in D.C., although there's little doubt the real reason is his resistance to lowering interest rates. Warren, the ranking Democrat on the Senate Banking Committee, has been going to bat for Powell on TV and in a recent speech. 'The president has the capacity to fire everybody in his Cabinet. ... But he does not have the legal authority to fire the chairman of the Fed. The Fed is supposed to be independent,' Warren said on CNN Wednesday night. Dumping Powell could crash the stock market, she said on MSNBC Thursday morning. 'If Donald Trump destroys [the Fed's independence], then he brings down those markets,' Warren said. 'He burns something of value to the United States.' On Wednesday, Trump publicly backed off comments he reportedly made to congressional Republicans suggesting he might fire Powell — in part because lawyers warned him the dismissal might not hold up in court, POLITICO reported Thursday. Fed chairs can only be removed 'for cause,' and the legal experts doubted the pricey renovations to an aging office building would withstand legal scrutiny. Warren's defense is an unlikely turn for the sole senator to vote against advancing Powell's nomination in 2017. Since then, Warren has remained a vocal critic of Powell. She's described him as 'a dangerous man' to lead the Fed, and in 2023 implied President Joe Biden should remove him from the position. Warren's advocacy to prevent Powell's ouster, however, doesn't mean he's won her over. 'Independence does not mean impunity, and I have long pushed for more transparency and accountability at the Fed,' she said during a speech before economists Wednesday. GOOD FRIDAY MORNING, MASSACHUSETTS. TGIF! TODAY — Gov. Maura Healey has no public events. THIS WEEKEND — Norfolk County Sheriff Patrick McDermott, head of the Massachusetts Sheriffs Association, is on WBZ's 'Keller @ Large' at 8:30 a.m. Sunday. State Sen. Dylan Fernandes is on WCVB's 'On the Record' at 11 a.m. Sunday. Have a tip, story, suggestion, birthday, anniversary, new job, or any other nugget for the Playbook? DATELINE BEACON HILL — Despite rapidly declining numbers and closure of hotels, Healey administration says emergency shelter system still in crisis by Samantha J. Gross, The Boston Globe: 'The number of families living in the state's once-overwhelmed emergency shelter system is half of what it was at its peak. Governor Maura Healey insists the costs, which ballooned to $1 billion last year, are coming down, and the government is six months ahead of its deadline to end the widespread use of hotels and motels as family shelters. But the Healey administration says the shelter system is still in crisis. State officials last Friday extended a formal emergency declaration, asserting that even though the number of families in shelter is below the cap set by the Legislature, the state still cannot keep up with the demand. Healey officials say they issued the declaration specifically so they can continue to impose restrictions on shelters, such as limiting who gets priority for beds and how long they can stay.' — State lawmaker pleads guilty to drunk driving charges by Walter Wuthmann, WBUR: 'Watertown state Rep. John Lawn pleaded guilty to drunk driving charges on Monday in Boston Municipal Court after a not guilty plea had been previously entered on his behalf earlier in the morning. He admitted to driving under the influence and leaving the scene of a crash near the State House. Lawn faces fines, alcohol treatment and education and a 45-day driver's license suspension. Both charges will be continued without a finding if Lawn maintains a clean record a one year.' House Speaker Ron Mariano told the Boston Herald's Joe Dwinell that it was 'aberrant behavior' for Lawn, who he believes will 'use this as a reset.' Mariano also shut down one question that bubbled up after the Watertown representative reportedly told police he was coming from an event at the State House: 'He had not had a drink when we left the State House,' Mariano told the Herald. FROM THE HUB — Boston Mayor Wu touts office to housing conversion success, with 100-plus units under construction by Gayla Cawley, Boston Herald: 'Mayor Michelle Wu gleefully took a sledgehammer to the walls of an eight-story South Boston building to break ground on the city's largest office-to-residential conversion project to date, accounting for 77 of the 141 such units under construction. Wu, flanked by her planning and housing chiefs, key state elected officials, including ally Rep. Aaron Michlewitz, and developers behind the latest project, spoke to how Thursday's milestone marking the first 100 office-to-housing units under construction seeks to make a small dent in the city's housing crisis.' — Parents' group sues over BPS exam school admissions, alleging discrimination against white students by Christopher Huffaker, The Boston Globe: 'A group representing parents whose children were denied admission to Boston's prestigious exam schools filed a lawsuit on Thursday against the school district, alleging racial discrimination by proxy in the schools' admissions system. The group, which also represents parents whose children plan to apply to the school, is seeking to block the district from continuing to use the admissions system the School Committee adopted in 2021 which divides the city up into socioeconomic 'tiers' students compete within. The lawsuits also ask that the group members' children who were denied admission to one or more exam schools be admitted to the school of their choice.' — Greater Boston home prices surpass $1 million for first time in history by Zeninjor Enwemeka, WBUR. PLANES, TRAINS AND AUTOMOBILES — For T riders, the shutdown fatigue is real by Jeremy Siegel, GBH News: 'The slow zones are gone. The shutdowns are shorter. But T riders are still frustrated by the deluge of recent service changes that have forced riders off of trains and onto shuttle buses. For the second week in a row, the MBTA is closing down a key piece of the Red Line for three days. Starting Thursday at 8:30 p.m., trains won't run through Downtown Boston until Monday morning, with shuttle buses replacing service between Kendall/MIT and JFK/UMass as crews conduct routine maintenance work and track repairs.' DAY IN COURT — Massachusetts trash strike: Greater Boston cities, towns take Republic Services to court by Lance Reynolds, Boston Herald: 'Greater Boston communities at the center of the ongoing sanitation worker strike are taking Republic Services to court, seeking immediate relief as trash piles mount, attracting rats and giving off a sickening stench. Gov. Maura Healey is backing the six cities and towns that have filed a complaint in Essex County Superior Court, calling for the waste management giant to resolve its dispute with striking members of Teamsters Local 25.' EYES ON 2026 — Rep. Seth Moulton draws a primary challenge after criticism over trans athlete remarks by Samantha J. Gross, The Boston Globe: 'Bethany Andres-Beck, a software engineer and Democratic activist, is launching a primary challenge to six-term US Representative Seth Moulton, who caught flak last year after he made remarks about how trans athletes and identity politics contributed to Democrats' November losses. Andres-Beck, who identifies as transgender, said that Moulton is 'exactly wrong on the strategy piece' when it comes to the transgender community, and that his comments are 'part and parcel of being out of touch with America.'' — Patrick Roath hopes to ride a youth movement into Congress and oust Stephen Lynch by Anthony Brooks, WBUR. FALL RIVER FALLOUT — Did Gabriel House ever conduct fire drills? Here's what Fall River inspection reports say by Dan Medeiros, The Herald News: 'Residents who were evacuated from Gabriel House assisted living facility after the deadly July 13 fire did not paint a pretty picture of the building. The city on July 16 and 17 released Building and Fire Department reports for the last several years. Despite residents' concerns, the documents show a facility that, though occasionally hit with bedbug and roach problems, was up to code and passed all fire safety inspections the last six years running — including holding fire drills, which some residents have claimed did not occur.' — 10th victim dies from fire at Fall River assisted living facility via The Boston Globe. FROM THE 413 — Chicopee native announces candidacy for at-large city councilor position by Namu Sampath, The Springfield Republican: 'A Chicopee native has thrown her hat in the ring for one of the vacant at-large city councilor positions. Jessica L. Avery, who works in credit union advocacy, announced her campaign in a statement Thursday. Avery's priorities include housing, support for veterans and seniors, and removing barriers to government access.' THE LOCAL ANGLE — Methuen seeks extension in police discrimination lawsuit by Teddy Tauscher, The Eagle-Tribune: 'After a judge ordered the city to produce 10 years of documents in a police discrimination lawsuit, city lawyers said they have located 600,000 new emails and attachments, equating to nearly a million pages, which must now be reviewed by outside counsel. In an emergency motion made on Tuesday, city attorneys asked for more time to examine the documents, which were supposed to be due to the court on July 15. On April 24, 2024, Methuen Detective Charles DeJesus filed a sweeping lawsuit claiming that for decades he and members of the community have been the victims of racial discrimination by the police department. The city has denied his allegations.' — Liberty Gas looking for state approval to sharply increase rates for Attleboro area by Stephen Peterson, The Sun Chronicle: 'Liberty, the natural gas company for part of the Attleboro area — North Attleboro, Plainville and Wrentham, is looking for state approval to increase rates by a substantial amount and revamp its rate system. Liberty Utilities (New England Natural Gas Company) Corp., doing business as Liberty, has filed a petition with the state Department of Public Utilities for an increase in gas base distribution rates, according to a full page ad on page B7 in Friday's Sun Chronicle.' — New Bedford woman denied bond at immigration hearing by Kevin G. Andrade, The New Bedford Light: 'A New Bedford mother of three was denied bond in immigration court Thursday — a decision likely related to a recent policy memo issued by ICE that disallows bonds for those who entered the U.S. illegally. Yury Melissa Aguiriano-Romero, 35, an asylum applicant from Honduras, was denied bond by Immigration Judge Natalie Smith during a hearing at Chelmsford Immigration Court regarding a reopened asylum claim.' HEARD 'ROUND THE BUBBLAH WELCOME TO THE WORLD — Former Boston City Councilor Matt O'Malley, chief sustainability officer at Vicinity Energy, and Kathryn Niforos, communications director for Vineyard Offshore, welcomed Matilda Georgia O'Malley on July 1. Pic! HAPPY BIRTHDAY — to former state Rep. Paul Schmid, former state Rep. Jeff Sanchez, Nate Everett, Sarah Iselin, Michael Bakshi, Emerson College lecturer Keri Thompson, Amy Sweeney, Eddie Flannery and Sarah Kashinsky. HAPPY BIRTHWEEKEND — to Milton state Sen. Walter Timilty, Jordan Meehan, state Rep. Simon Cataldo and Google's Catherine Cloutier, who celebrate Saturday; and to Sunday birthday-ers to former state Rep. Eugene O'Flaherty, Krista Zalatores, Mass. native and POLITICO alum and David Giambusso.
Yahoo
2 days ago
- Business
- Yahoo
Jerome Powell defends $2.5 billion Federal Reserve renovation project amid criticism from the Trump administration
The Federal Reserve defended its $2.5 billion renovation amid political pressure. The renovation costs rose from $1.9 billion in 2017 due to material and labor costs. President Donald Trump's criticism of the project came amid speculation that he would fire Jerome Powell. The Trump administration is criticizing the Federal Reserve's renovation project amid a feud with the independent institution over interest rates. Federal Reserve Chair Jerome Powell defended the bank's $2.5 billion headquarters renovation budget in a letter Thursday, in response to accusations from a top Trump administration official who alleged mismanagement and potential legal violations. "While periodic work has been done to keep these buildings occupiable, neither building has seen a comprehensive renovation since they were first constructed," Powell wrote of the Federal Reserve's Washington, DC headquarters built in the 1930s. "The Board has made a small number of design changes to scale back or eliminate certain elements and has added no new elements," Powell added. "These changes were intended to simplify construction and reduce the likelihood of further delays and cost increases." The cost of the major renovation project became a talking point for the Trump administration when the original $1.9 billion price tag in 2017 ballooned to $2.5 billion by 2023. A 2023 Fed budget document attributed the cost to "significant increases in raw materials… higher labor costs, and changes in construction schedule expectations which lengthen use of leased space." The renovation design, which includes an update to the historic Marriner S. Eccles Building, has seen a range of cost cutting changes in comparison to the original plan approved by the National Capital Planning Commission. According to Powell's congressional testimony in June, "roof terrace gardens," "water features," and "new marble" have been scrapped to reduce costs, but updates like asbestos removal and overhauling outdated electrical and fire safety systems are essential for safety and compliance. On July 10, Russell Vought, who served as director of the Office of Management and Budget under former President Donald Trump, posted a sharply worded letter on social media. The letter accuses Powell of overseeing an "ostentatious overhaul" of the Fed's buildings and of breaking oversight laws. The letter also questions whether the renovation includes a VIP elevator and marble accessories, luxury features which Powell said in his response are not part of the plan. "The President is extremely troubled by your management of the Federal Reserve System," Vought wrote, adding that Powell had seven business days to respond. The president himself also criticised the renovation project early this week. "When you spend $2.5 billion on, really, a renovation, I think it's really disgraceful," Trump told reporters during a press appearance. Trump added that Powell's actions were "sort of" grounds for dismissal but later said he was "highly unlikely" to fire Powell, unless it was for "fraud." Earlier that day, reports surfaced that Trump was considering firing Powell, which caused a swing in the stock market. Powell, whose term is not over until May 2026 and cannot be removed without cause, has been at odds with Trump over monetary policy and has not lowered interest rates. While the president wishes to see lower borrowing costs, the Federal Reserve is concerned about bringing inflation down to the target of 2%. Read the original article on Business Insider Sign in to access your portfolio
Business Insider
3 days ago
- Business
- Business Insider
Some businesses have held off on hiking prices, but this might not last for long
Prices have not gone up as much as expected for consumers, but this might not last for long. The latest Federal Reserve Board Beige Book, a publication that provides general information about the current state of the economy, mentioned tariffs 75 times and warns of price hikes as tariffs become more entrenched. Across all 12 Federal Reserve districts, businesses told the Federal Reserve that tariffs have increased their costs either modestly or pronouncedly. Many manufacturers reported being surcharged by their suppliers, especially for raw materials used in manufacturing and construction. While many businesses said they passed along costs to consumers through price hikes, others held off due to price-sensitive consumers, which affected their profit margins. For instance, a manufacturing company in Memphis told the St. Louis Federal Reserve that it had raised prices significantly to offset the tariff cost on steel and aluminum, but a packaging company in the district is swallowing at least 10% in surcharge due to competition with larger manufacturers. But the prices may not stay low for long as tariffs prolong. "Contacts in a wide range of industries expected cost pressures to remain elevated in the coming months, increasing the likelihood that consumer prices will start to rise more rapidly by late summer," wrote the Federal Reserve System in the July Beige Book. "It seems that prices have gone up out of fear that prices will go up," a construction materials supplier told the Federal Reserve. The consumer price index, a broad-based measure of goods and services costs, shows that prices have not skyrocketed post-tariffs. In June, prices inched up by 0.3%, putting the 12-month inflation rate at 2.7%. This is mostly in line with analyst expectations, though it's still above the Federal Reserve's goal of 2%. The Trump administration recently sent tariff letters to nearly two dozen trading partners, threatening duties as high as 50% starting from August 1. None of the four existing trade agreements with the UK, China, Vietnam, and Indonesia has yielded tariffs below 10%, suggesting that the baseline tariff imposed on April 2 may be here to stay.
Yahoo
3 days ago
- Business
- Yahoo
Navarro: Jerome Powell is the worst Fed chair in history
White House trade czar Peter Navarro on Wednesday called Federal Reserve Board Chair Jerome Powell the 'worst Fed chair in history' at the Hill Nation Summit. 'All I want is a Fed chair who understands how economies work, and Powell ain't that,' he said. 'We're in the endgame now for Powell.' Navarro avoided explicitly calling for Powell's ouster, dodging a question on whether he thought Trump economic adviser Kevin Hassett could be the next chair. He also demurred on whether Powell could be fired. Live coverage: Navarro says Powell is 'worst Fed chair in history' at Hill Nation Summit Trump has spent months attacking Powell, whom he appointed to a 10-year term during his first stint in the Oval Office, expressing frustration that the Fed has not lowered interest rates to his liking. The White House also began probing the Fed's planned renovations to its offices over what it calls excessive costs. Navarro on Wednesday also said the Federal Reserve board had become polarized. 'The problem with the Fed now is that it's too politicized, because a lot of folks on the board are Democrats who hate Trump,' he said. Trump has said recently he wants the Fed to lower interest rates, which could help tamp down inflation as he pursues aggressive tariff policies. The board has historically been expected to make decisions on the interest rate without political input. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
3 days ago
- Business
- The Hill
Byron Donalds on potential Powell firing: ‘I'm not there yet'
Rep. Byron Donalds (R-Fla.) said he 'not there yet' with firing Federal Reserve Board Chair Jerome Powell, after President Trump indicated he was considering it. He instead called on Congress to enact spending cuts. 'I'm not there yet, but I'll tell you that the president doesn't rule anything out,' Donalds said at the Hill Nation Summit Wednesday in response to a question from The Hill reporter Mychael Schnell about Powell. 'It's pretty clear the president is frustrated about where short-term interest rates are,' Donalds said. He added he wanted to see rates lowered, but stopped short of joining calls to fire Powell that have been echoed by some congressional Republicans. The White House has mused about the move, although it's not clear Trump has the legal authority to do so. 'I think the greater issue is Congress being smart with the people's money,' Donalds added. Donalds worked in banking and finance prior to coming to Congress. He authored a letter in December with Rep. French Hill (R-Ark.) calling on the Fed to ditch its dual mandate of focusing on balancing unemployment and inflation. The lawmakers argued that the board should focus on inflation.
