Latest news with #OnTheMoney
New York Post
5 days ago
- Business
- New York Post
The race to succeed Fed Chair Jerome Powell just got weirder
Federal Reserve Chair Jerome Powell's wild ride with President Trump took a few turns down Crazy Street a while ago, of course – but that doesn't mean the stomach-churning trip is over. While Wall Street grapples with the president's threats to fire the central bank's boss, the rumor mill surrounding his possible successor has yielded a dizzying surprise of its own, On The Money has learned. Bill Pulte, the current head of the Federal Housing Finance Authority that runs mortgage giants Fannie Mae and Freddie Mac, has lately surfaced as a possible pick alongside the 'two Kevins' – Kevin Hassett, director of the National Economic Council; and Kevin Warsh, a Stanford professor and fellow at the right-leaning Hoover Institute. 3 While Wall Street grapples with the president's threats to fire the central bank's boss, the rumor mill surrounding his possible successor has yielded a dizzying surprise of its own. From left Bill Pulte, Kevin Warsh and Kevin Hassett Let's be clear – this Pulte rumor is not getting a lot of credence. Pulte is not an economist. He has a degree in broadcast journalism. He is 37 years old. Yet his name oddly began bouncing around the outer edge of the rumor mill after he posted on social media last week that the current Fed chair might step down. Advertisement Yes, Pulte runs an agency that oversees some $7 trillion in loans. He's also the scion of the Pulte family that runs the big residential construction company now known as the Pulte Group. He worked in private equity. But his social media feed shows he also tapped into the meme stock craze, even if he was careful not to give specific buy recs. While I kind of like the idea of a meme-stock guy running the Fed just for comedic value, the markets would probably puke with interest rates on the 10 and 30-year bond exploding. Advertisement On the other hand, we all know Trump loves easy money (he hates Powell for not being easier with it) and has made some unconventional choices for his cabinet in the past (cf. Matt Gaetz, Pete Hegseth, RFK Jr., etc., etc.). It's probably nothing, of course. Has to be, right? Just one more thing to make the suits on Wall Street sweat a little harder this summer. 3 Kevin Hassett is a smart economist who's also good on TV — a plus in Trump's world. Getty Images Back to reality (we hope?). Kevin Hassett is a smart economist. He co-authored the 1999 book 'Dow 36,0000' predicting a massive bull market in stocks. The markets subsequently fell with the dot-com bust, but the prediction was highly prescient, with the down closing Wednesday over 44,000. Advertisement Hassett is also good on TV — a plus in Trump world, but again, the question becomes whether he will be seen as a rubber-stamp on interest rate policy given his loyalty to the president and whether that will lead to bond market turmoil. That brings us to the best choice for the job, Kevin Warsh, who seems to have it all. He's camera ready, and he has both the professional chops to do the job having been on the Fed's board of governors during the 2008 financial crisis. 3 As reported, Treasury Secretary Scott Bessent is leading the search, and could pick himself. AFP via Getty Images He's said to be close with Trump who has leaned on him over the years on monetary policy issues. Another plus: Warsh has been a critic of Jerome Powell's handling of interest rate policy. Seems like a shoe-in for Trump right? Well maybe not. Warsh's Powell critique is mainly over the Fed chair missing the boat on inflation back in 2021 and not raising interest rates fast enough. He would run a less interventionist Fed if he had his druthers, which might not be to The Donald's liking given the president's obsession with lower short term rates. Advertisement All that said, Warsh would make a really good Fed chair and he and Trump have a bond, I am told. Trump does pick people for top jobs he likes. As reported, Treasury Secretary Scott Bessent is leading the search, and could pick himself, which would be interesting to watch as that controversy unfolds. Bessent is highly qualified, though. He made his mark on Wall Street as a savvy hedge fund trader, worked for George Soros, the 94-year-old left-wing financier, who made his own fortune back in the day for shorting (betting against) the pound sterling and 'breaking' the Bank of England during the UK currency crisis. In other words Bessent understands monetary policy as well as anyone and Trump obviously trusts his economic knowledge since he's heading his trade negotiations. His baggage will be making money – maybe too much of it as a speculator. Can't wait for those confirmation hearings.
New York Post
5 days ago
- Business
- New York Post
Sun Valley has lost its dealmaking mojo — here's why
It's no surprise that the biggest story that came out of last week's so-called 'summer camp for billionaires,' the once high-profile Allen & Co. media conference, involved the investment bank directing its band of goon-squad security guards to chase away reporters from doing their job of interviewing some of the A-listers who still attend. The get-together on the lush grounds of the Sun Valley Lodge in Idaho is an also-ran because Big Media isn't so big anymore. Sure, some moguls still have their billions, but most run companies that are melting away, having been hurt by secular forces in their business. Their hold on American culture has also waned considerably as consumers of entertainment and news increasingly boycott wokeism. Advertisement It's no surprise that the biggest story that came out of last week's 'summer camp for billionaires,' the once high-profile Allen & Co. media conference, involved the investment bank directing its security guards to chase away reporters. Jack Forbes / NY Post Design That doesn't mean there was no business going down, though it was a far cry from years past. Four years ago, the Post's Lydia Moynihan first reported that media heiress Shari Redstone was at the confab shopping Paramount Global. An $8 billion merger with Skydance Media is now poised to be consummated as it awaits regulatory approval from the Federal Communications Commission. From what I understand, this year's Sun Valley chatter was focused on much smaller players and deals since the big guys (think companies like Warner Bros. Discovery and Comcast) are busy spinning off their money-losing assets. They're breaking up into smaller pieces to try to preserve some shareholder value. Plus, they have neither the stomach or the balance sheet in the foreseeable future for major acquisitions, particularly the transformation type. Advertisement The names that I understand were on the dealmaking watch list were the so-called local broadcasters. Many of them run affiliate stations of the major networks that serve local news to middle America. These are companies like Sinclair Broadcast Group, Gray Media and Cox Media Group. The latter is private and majority owned by private equity shop Apollo Management. Shares of Sinclair are up 16%, while Gray is up 30% – compared to a 5% rise in the S&P – based on merger and buyout chatter, telecom bankers and lawyers tell On The Money. Advertisement Shari Redstone at Sun Valley in 2021. Getty Images Apollo is looking for a buyer for Cox, I am told. So why would anyone bet that Little Media will survive the melting ice cube that is draining the Big Media business model? First the little guys do make money, though less so because of changes in the business. There is also a move by Trump regulators to preserve local TV media since it serves so much of the MAGA base. Advertisement Charlie Gasparino has his finger on the pulse of where business, politics and finance meet Sign up to receive On The Money by Charlie Gasparino in your inbox every Thursday. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters That means networks like Paramount-owned CBS will be on a tight leash from DC to jack up fees on the locals to run their programming. On top of it all, these companies run lean and can run leaner, meaning you can grow profits through cuts, bankers argue. So who would buy them? Difficult to say since major players might not have the balance sheet. Maybe they will merge or begin swapping properties among themselves. Full disclosure: I didn't attend Sun Valley to report any of the above, which is another reason to skip the event.
New York Post
5 days ago
- Business
- New York Post
The Trump camp's tug of war over Fed Chair Jerome Powell's future
One minute it seems like Donald Trump is ready to fire Jerome Powell, the next minute he isn't. But it's not just the president who apparently can't make up his mind on the future of the Federal Reserve chair – it's his own staff, On The Money has learned. People with direct knowledge of the matter tell me that the administration's legal types and people inside the Treasury Department are divided over whether the president can pull the plug on Powell. 3 Jerome Powell's term ends in 10 months, but President Trump wants him gone closer to yesterday because he believes he's too cautious in cutting rates. Jack Forbes / NY Post Design Recall, Powell's term ends in 10 months, but Trump wants him gone closer to yesterday because he believes he's too cautious in cutting rates. Under the law, Trump can fire Powell for what's known as 'cause.' What Trump's inner circle is grappling with is what exactly constitutes 'cause' in a way that can withstand legal scrutiny. The 'Fire Powell' lawyers believes the president has a wide berth to interpret the 'for cause' clause in the Federal Reserve Act, the 1913 law that established the nation's central bank as a semi-independent agency of government to control the money supply while maintaining price stability and full employment. The president nominates the Fed chair for a four-year term, which requires Senate confirmation, but that term isn't guaranteed if he steps out of line, this faction argues. Trump could simply say Powell is unqualified for the job, having missed the inflation spike in 2021 before raising interest rates, and then cut them during the run up to the 2024 election – allegedly to help his Democratic opponent Kamala Harris. Trump could also argue that Powell is incompetent for not lowering interest rates now amid signs the economy is slowing and Trump's tariffs haven't led to a significant spike in inflation. 3 Under the law, Trump can fire Powell for what's known as 'cause.' What Trump's inner circle is grappling with is what exactly constitutes 'cause' in a way that can withstand legal scrutiny. AP Not so fast, say 'Keep Powell' proponents at the Treasury Department – including Treasury Secretary Scott Bessent. They believe 'for cause' means a serious breach of ethical conduct or law, sources tell On The Money. Not liking Powell's interest rate policy doesn't meet that standard, they argue. In fact, the Federal Reserve Act specifically preserves the Fed's independence from the president, which is why there's such a high 'for cause' bar to meet before you can ax the fed chairman, they would add. The $2.5 billion Fed office fiasco, as reported by The Post, with Powell accused by Trump allies of lying to Congress about the 'Palace of Versailles' opulence of the project, gets you closer to 'for cause.' But proving perjury as opposed to misspeaking or legalese is difficult. Plus, Powell wouldn't be the first bureaucrat to go over budget. 3 Powell is accused of lying to Congress about a $2.5 billion Fed renovation project. Getty Images If Trump did pull the trigger, the Treasury peeps are arguing, it would create a messy legal battle between Powell and the president. The Fed chair could refuse to leave, arguing that the cause bar hasn't been met, likely pulling the Supreme Court into the fracas. Given the way the act is written, it's unclear if even a largely Trump-appointed court would side with the president. The conservative majority might not want to upset years of precedent involving the Fed chair's independence, so better to let Powell serve out his term until it ends next May (he could stay on the Board of Governors until 2028). So far, it's the Bessent faction that is winning. Trump said Wednesday he has 'no plans' to fire Powell after reports surfaced that his days are numbered. But the president added a caveat: 'Unless he has to leave for fraud.' Coincidentally, it's Bessent who oversees vetting candidates for Powell's replacement as interest rate policy becomes a growing concern for the Treasury Secretary. Because the Big Beautiful Bill doesn't cut the deficit in the near term, Bessent must keep issuing lots of debt. He's borrowing a page from his predecessor, Janet Yellen, by rolling over short term debt so he doesn't cause a spike in interest rates on 10-year bonds, where consumer rates are priced (bond prices move in opposite direction from interest rates; you get higher rates when you issue more bonds). Considering all the above, maybe Bessent changes his tune and falls into the 'Fire Powell' camp for an interest-rate dove. It will make his debt-management job a hell of a lot easier. A White House spokesman and spokeswoman for Bessent had no immediate comment.
New York Post
11-07-2025
- Business
- New York Post
Tesla's feckless board needs to rein in Elon Musk before it's too late
Shares of Tesla are up around 190% during the past five years, almost double that of the S&P 500, which has given its CEO, the voluble and volatile, Elon Musk a lot of room to flout convention. The board of the publicly-traded EV company technically works for its shareholders and because of that share price, it has allowed Musk to smoke pot on a podcast, thumb his nose at securities regulators, juggle multiple outside business interests, sell Tesla stock to buy Twitter, become President Trump's 'first buddy,' spend lots of time tweeting, and now — maybe —to start a new political party. I say 'maybe' because Elon's latest side hustle could be where he's gone too far, corporate governance experts and investors tell On The Money. Elon's latest side hustle could be where he's gone too far, corporate governance experts and investors say. Jack Forbes / NY Post Design Elon says he wants to start a new political party dedicated (at least according to a reading of his social media feed) to fiscal discipline, which he believes is missing from the two major parties that currently exist. This latest venture comes after he spent time and millions of dollars getting Donald Trump elected president, working in the White House in its cost-cutting efforts known as DOGE, then famously falling out with Trump over the president's failure to deliver meaningful cuts in his 'Big Beautiful Budget' that still produces a $2 trillion-plus annual deficit. On The Money will leave the merits of his Trumpian tensions and the need for a third-party dedicated to reigning in our obviously perilous fiscal largesse for another column and will instead focus on whether Musk's latest foray could land him in legal peril. The answer according to these people is yes. Finally, Musk might have to conform to some semblance of what is generally regarded as normal behavior for a CEO running a public company. I know what you're saying, why is starting a political party worse than everything else Musk has done? And why would a board known for its acquiescences to an imperial CEO finally grow a pair and exert its legal responsibility as fiduciaries for shareholders? Recall Musk's prior antics were taking place while Tesla's shares were exploding in value, beating every metric as the EV car company became a symbol of the future for transportation. Tesla, from an operational standpoint, looked like a well-oiled machine, hitting its production targets and growing profits. Trump and Musk sit in a Tesla at the White House in March. AFP via Getty Images That was before Musk joined the Trump White House and became a political target, dragging Tesla along with him. The radical left vandalized Tesla dealerships, which is a law enforcement matter. The real problem was that Musk alienated Tesla customers, much of them left-leaning environmentalists who ride EVs as a political statement, and profits nosedived. While Musk was spending so much time in the White House, Tesla has been missing delivery targets; it's placing a big bet on autonomous cars, but that could deprive its staple EV of much needed R&D. The Big Beautiful Bill cuts EV subsidies, which Trump believes is at the heart of their feud, but now that their relationship keeps souring, Tesla could lose other forms of government support. Charlie Gasparino has his finger on the pulse of where business, politics and finance meet Sign up to receive On The Money by Charlie Gasparino in your inbox every Thursday. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters Since the beginning of the year, shares are down around 20%; the S&P is up about 7%. All of which is putting pressure on Tesla's board to intervene and set some ground rules on Musk starting a new political party, On The Money has learned. Veteran tech analyst Dan Ives, a long-time Tesla bull, expects exactly that at the next company shareholder meeting scheduled for November after what appeared to be a long delay that prompted more investor backlash. Ives points out that Musk does have significant control of the company since he's the largest individual shareholder. But that doesn't make him immune from shareholder pressure, and fiduciary responsibility that should be enforced by his board given all of the above, or they too could be on the hook for civil litigation and possible violations of securities laws by not creating some shareholder-friendly behavioral boundaries for their CEO. It's unclear, Ives says, whether this will preclude Musk from his third-party idea, but he says he expects the board to impose more 'oversight…to make sure Musk does his homework assignment.'
New York Post
10-07-2025
- Business
- New York Post
Rattled NYC elite try to tame Marxist Mamdani
The leftist New York City mayoral front-runner Zohran Mamdani might not be the business community's first choice to run the Big Apple, but a growing contingent in Gotham's fat cat class say they can can change his evil ways – or at the very least work with him to soften his Marxist rough edges, On The Money has learned. To be sure, this isn't a majority opinion among the city's business elite. Most are scared to death that a radical with Marxist views on the economy, past calls to defund the police, someone who won't denounce the term 'globalize the Intifada,' could be our next mayor. But that could be that case after Mamdani won the Democratic primary in this heavily Democratic city, besting former governor, and party moderate Andrew Cuomo by a comfortable margin. As On The Money has reported, the business community's allegiance to Cuomo is now fraying; with many deep-pocketed leaders urging him to drop out as they look to coalesce around the current mayor, Eric Adams. 4 Neither Eric Adams nor Andrew Cuomo seem to be willing to drop out of the race, so it's understandable that many business types are looking at a Mayor Mamdani future, and betting they can make it work. Jack Forbes / NY Post Design Cuomo remains in the race, trying to convince business leaders that Adams is 'unelectable' (his word) and brandishing various polls showing Adams getting trounced if the election took place today. Mandani, these polls show, barely gets more than 35% of the vote in the general election, which means he's beatable if the field narrows. But neither Adams nor Cuomo seem to be willing to drop out of the race, so it's understandable that many business types are looking at a Mayor Mamdani future, and betting they can make it work, On The Money has learned. The business community isn't the city's biggest voting bloc, not by a long shot, though that understates its importance. Real estate, finance and tech executives have money to splurge on their candidate – and fill the airwaves with negative ads, which could sway voters away from Mamdani when they are faced with daily reminders of his controversial opinions and snippets of his social media feed that you can make a good case veers into some scary takes on race and culture. Or maybe many — a sizable minority if my reporting is accurate — just see the 33-year-old Mamdani as an unstoppable force, and someone who can be molded by the reality of governing. 4 The business community's allegiance to Andrew Cuomo is now fraying. Matthew McDermott As one top business leader told On The Money: 'My best guess is that Mamdani is naive, but he's very smart and hopefully educable. I fear the ideological stuff may be in his DNA based on what I have been told about his parents, but maybe he can outgrow it. We have to hope.' On its face, Mamdani does come across as a bit of a blank slate. He's never really held a private sector job before getting into politics, unless you consider his short and unsuccessful stint as a rapper as work experience. He did better in politics, of course. He worked for a handful of far-left city pols, ran for a Queens assembly seat and won in 2019 and was re-elected twice before running for mayor. That said, I have never met a real blank slate who ascended in business or politics because everyone has a backstory that shaped their ambition. Dig deeper and you can see Mamdani's ambition and ideological roots, how they formulated into policy, and why any business leader looking to change his brain cells would need their own skulls examined. 4 Mamdani is beatable if the field narrows for Adams. John Angelillo/UPI/Shutterstock First, he's the product of far-left parenting, a Marxist academic and a filmmaker, who grew up rich in NYC, attended good schools, and ultra-liberal Bowdoin for college. As The Post has reported, he checked the 'Black or African American' box on his college application not due to his Indian heritage, but because before moving to the US, he was born in the African country of Uganda and wanted to 'capture the fullness' of his background. The leftist obsession with intersectionality appears to be among his selling points. Peruse his X feed. His ramblings about economics, the need for government run groceries, massive tax hikes on wealth creators, his retweets of gross racial stereotypes and you will see this is someone not looking for mentoring but pushing NYC into dangerously progressive territory. Kathy Wylde of the Partnership for New York City has been recently making nice with Mamdani and will hold a meeting with him and some business leaders next week. High on her agenda will be a recommendation from the business types that Mamdani if elected keep Jessica Tisch, the current police commissioner, if he is elected in November. 4 Kathy Wylde of the Partnership for New York City has been recently making nice with Mamdani. Bloomberg via Getty Images Tisch, from the powerful Tisch family, is a business community favorite because among other attributes she has done a good job tamping down on crime, including on subways, since taking the job just about a year ago. While many city business leaders will show up to Wylde's Mamdani confab, others I speak to are skeptical that olive branches to Mamdani will work. One top city hedge fund leader supporting Adams tells me Wylde is just looking to remain relevant as her coalition splinters, with the largest faction supporting another Adams term despite his uneven first four years, which included a significant corruption scandal. Wylde has had a tense relationship with Cuomo over the years (the two don't hide their disdain for each other) and has in the past supported Adams. She has grown critical of the mayor, particularly during his ethical mishaps, but tells me she and Partnership members are meeting with Adams this week 'for a conversation about his accomplishments and path to victory.' As for Cuomo, Wylde characterizes their relationship this way: 'I supported Cuomo for governor, but I don't think he cares enough about the city to be mayor.' Charlie Gasparino has his finger on the pulse of where business, politics and finance meet Sign up to receive On The Money by Charlie Gasparino in your inbox every Thursday. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters A Cuomo spokeswoman had no comment. Mamdani might care a lot about the city even as he pushes it off the fiscal cliff with policies that will lead to more crime, businesses leaving and insolvency, which is why some business leaders tell me Wylde is being absurdly naïve thinking she can forge a relationship with a Marxist, whose past statements suggests he views the business community with intense disdain. Like most politicians Mandani will do what it takes to win, and in his case that means softening his radical edges and then enacting full-on leftism once in office, they say. 'I'm shocked that Kathy set up that meeting,' one business executive who supported Cuomo but is now moving close to Adams told me, before adding: 'I'm being facetious.'
