Powell

Familiar face Norman Powell helps Heat beat the Clippers

Bam Adebayo had 25 points and 10 rebounds, Norman Powell added 21 points in his return to Southern California and the Miami Heat held off the Clippers 120-119 on Monday night.

Powell was a key member of the Clippers for three seasons before being traded to the Heat before this season.

Andrew Wiggins scored 17 points and Kel’el Ware added 16 to help the Heat end a two-game losing streak and win on the road for the second time in five games. Miami is 1-2 to open a four-game trip.

James Harden scored 29 points and Kawhi Leonard added 27 as the Clippers lost at home for the first time in four games this season.

Ivica Zubac had nine points and 12 rebounds for the Clippers. Derrick Jones Jr., Bradley Beal and John Collins each scored 12 points.

The Heat shot 54.2% from the field and made 12 of their 25 three-point attempts to 50% for the Clippers, who were 17 of 41 from long range. The Clippers had 21 turnovers that the Heat turned into 37 points.

Miami led 120-116 after two free throws from Adebayo with 56 seconds remaining. Adebayo missed a shot inside with 26 seconds left and Harden made a three-pointer on the other end with 20 seconds left to pull the Clippers within a point.

The Clippers had a chance to win it, but Leonard missed a 26-foot step-back three-pointer at the buzzer.

The Clippers trailed by as many as 13 points in the third quarter before getting even 105-105 with 9:55 remaining on a three-pointer from veteran Chris Paul.

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Fed Chairman Jerome Powell Just Hinted at a Change That Seems Positive for the Stock Market. But Should Investors Actually Be Worried?

An end to quantitative tightening by the Fed might not be as great for stocks as some think.

When Jerome Powell speaks, markets listen. As well they should. Powell serves as the chair of the Federal Reserve Board. As part of this role, he also leads the Federal Reserve Open Market Committee (FOMC), which sets the monetary policy of the U.S.

Powell recently hinted at a monetary policy change that seems positive for the stock market. But should investors actually be worried?

Federal Reserve Chair Jerome Powell answers reporters' questions at the FOMC press conference on Sept.17, 2025.

Federal Reserve Chair Jerome Powell answers reporters’ questions at the FOMC press conference on Sept.17, 2025. Official Federal Reserve Photo.

Good news for investors?

Powell spoke last week at the National Association for Business Economics conference held in Philadelphia, Pennsylvania. One of his key points in his address was an update on the status of the Fed’s “quantitative tightening” approach.

Quantitative tightening is the term used to describe when the Federal Reserve reduces the size of its balance sheet. To accomplish this goal, the Fed allows assets such as government-issued bonds to mature, or it actively sells those assets. This usually results in higher long-term interest rates, lower inflation, and a cooling down of an overheated economy.

The opposite of quantitative tightening is quantitative easing. With this approach, the Fed increases the size of its balance sheet. Quantitative easing is an expansionary policy that’s usually associated with a rising stock market.

In his recent remarks, Powell hinted that the Fed is close to ending its program of quantitative tightening. He said:

Our long-stated plan is to stop balance sheet runoff when reserves are somewhat above the level we judge consistent with ample reserve conditions. We may approach that point in coming months, and we are closely monitoring a wide range of indicators to inform this decision.

Powell always chooses his words deliberately and can often be somewhat ambiguous. However, the takeaway from his comments is that the Fed’s quantitative tightening policies could be almost over. This would seem to be good news for investors.

A more complicated picture

I chose those words deliberately and left room for ambiguity just as Powell likes to do. Why? Because there’s a more complicated picture if the Fed stops its quantitative tightening policies.

For one thing, the end of quantitative tightening doesn’t necessarily mean a return of robust quantitative easing. Some saw quantitative easing as something akin to steroids for the economy and stock market, while quantitative tightening was like a depressant. Using that analogy, discontinuing taking a depressant doesn’t boost strength in the same way as frequently taking a steroid might.

It’s also important to understand that the end of quantitative tightening could be a warning sign about the economy, and by extension, corporate earnings. The Fed doesn’t reduce the size of its balance sheet when the economy is weak. Powell’s remarks, indicating that quantitative tightening could soon taper off, might reflect significant underlying concerns by the Fed about the health of the U.S. economy, despite his seemingly positive statement last week that the economy “may be on a somewhat firmer trajectory than expected.” As the economy goes, so goes the stock market — usually.

Finally, there is a real risk that ending quantitative tightening could backfire. One of the main goals of the policy is to fight inflation. If the Fed returns to expanding its balance sheet, inflation could roar back. The effects of the Trump administration’s tariffs could add fuel to the fire, at least initially. Powell acknowledged in his speech at the National Association for Business Economics conference, “There is no risk-free path for policy as we navigate the tension between our employment and inflation goals.”

The Fed could find itself in a situation where it has to reverse tactics, which would likely create significant uncertainty for the stock market. If there’s anything investors hate, it’s uncertainty.

Should investors worry?

I think celebrating the Fed bringing its quantitative tightening policies to a halt is premature. However, it’s also too soon to worry about the potential impact on stocks from the decision.

We don’t know yet how quickly the Fed will begin increasing the size of its balance sheet. We don’t know how aggressively it will move if and when quantitative tightening comes to an end. We don’t know what else will be happening with the economy or the stock market.

What we do know, though, is that the stock market rises over the long term. Anyone with an investing time horizon measured in decades shouldn’t have anything to worry about, regardless of what the Fed does or doesn’t do in the near term.

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Jenny Powell, 57, shows off age-defying body after getting ‘game-changing’ treatment

JENNY Powell showcased her age-defying body following ‘game-changing’ treatment.

The radio and TV presenter, 57, took to Instagram and posted videos highlighting her incredible features.

Jenny Powell revealed the results following “game changing” treatmentCredit: Refer to source
The former Wheel of Fortune star showcased her age defying-looks to her followersCredit: Refer to source
Jenny is no stranger to wowing fans with her stunning looksCredit: Splash

Addressing her followers, Jenny revealed the results of lymphatic drainage treatment.

It is intended to help move lymphatic fluid in the body, which can boost immune function, as well as reduce swelling and inflammation.

She captioned the post: “Ever tried lymphatic drainage?”

Jenny revealed to the camera: “I just had the best lymphatic drainage treatment. It’s so nurturing.”

Read more on Jenny Powell

GOLDEN HOUR

Jenny Powell, 57, hasn’t aged a day as she strips off to a bikini to sunbathe


pow wow!

Jenny Powell, 57, looks incredible on the Brit Fest stage in a tiny gold dress

Her updates also included before and after photos highlighting the treatment.

She told her followers: “I feel lighter, less sluggish and more in tune with my body.

“This lymphatic drainage treatment @thelymphclinic_ has changed the game for me.

“You know me , I like to find holistic alternatives to help me in my wellbeing journey

“A little lymphatic drainage around the tummy goes a long way! 

“It helps shift that stubborn bloating, boosts digestion, and gets everything flowing again — think flatter, lighter and less puffy. 

“It’s like a gentle wake-up call for your gut, your glow and your energy!”

Last month, Jenny sent her followers wild with stunning snaps from an Ibiza holiday.

The former Wheel of Fortune star looked incredible in a patterned bikini as she unwound after watching her friends tie the knot.

She wrote on Instagram: “We chilled, did nothing, did everything and celebrated the marriage of two beautiful souls @positivepsychotherapyandyoga and all amongst the natural beauty and cosmic energy of @atzaro_hotel what a magical energy we all created.

“Thank you Steve and Lyndsey, thank you @leanelacase .. more magical moments incoming!!”

Jenny reclined on a large outdoor bed surrounded by plants and foliage and basked in the golden sun.

The hotel she stayed at calls itself the “best luxury hotel Ibiza” and it has plenty of five star reviews from happy customers.

Rooms at the ‘nature-connected’ accommodation start from £225 for a standard double room for a night, while suites can cost £774-a-night.

Jenny’s fans complimented her snaps with one writing: “A bronze goddess looking beautiful as always.”

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Another said: “Absolutely Gorgeous.”

A third posted: “I mean the only statement is wow.”

Her other past shows include Daybreak, Gimme 5 and UP2UCredit: Getty

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With Jerome Powell and the Fed Cutting Interest Rates, Is Home Depot a No-Brainer Dividend Stock to Buy for a Housing Market Recovery?

Home Depot’s multiyear downturn could be nearing an end.

When Home Depot (HD -0.68%) talks, the stock market listens. The blue chip Dow Jones Industrial Average component is a bellwether for consumer spending and the housing market.

In recent years, Home Depot’s results have disappointed. Earnings have been falling, and fiscal 2025 same-store sales are expected to grow by just 1%. But that sluggish growth could quickly fade into the rearview mirror.

In an effort to maximize employment and reduce inflation to 2% over the long run, Jerome Powell and the Federal Reserve are cutting interest rates by 0.25% — citing a weak labor market and “somewhat elevated” inflation. More cuts could be in the cards to boost consumer spending and avoid a recession. Although artificial intelligence (AI) has been driving the stock market to record highs, U.S. gross domestic product growth is projected to be just 1.6% in 2025 and under 2% every year through 2028 — illustrating weakness in the broader economy.

Here’s why an interest rate cut is great news for Home Depot, and whether the dividend stock is a buy now.

A person taking a beam of dimensional lumber off a shelf at a Home Depot home improvement store.

Image source: Getty Images.

A much-needed jolt

Higher interest rates have a significant impact on consumer spending, particularly on discretionary goods, services, and travel. When money is more readily available for borrowing, consumers may opt for a car loan or a mortgage because the monthly payment is lower. Or they may finance a home improvement project. In this vein, lower interest rates can lead to an increase in renovation projects, which benefits Home Depot.

There’s a big difference between going to Home Depot for a few spare parts to fix an appliance and redoing an entire room or section of a house. And Home Depot’s poor results suggest that a lot of customers are putting off big projects until conditions improve.

On its August earnings call (second quarter 2025), Home Depot said that lower interest rates would help boost demand and provide relief for mortgages. Home Depot CEO Ted Decker said the following:

When we talk generally though to our customers, each of our sets of consumers and pros, the number one reason for deferring the large project is general economic uncertainty, that is larger than prices of projects, of labor availability, all the various things we’ve talked about in the past. By a wide margin, economic uncertainty is number one.

The prospect of good-paying jobs and lower interest rates could certainly give Home Depot’s residential business a lift. However, the company has also been investing heavily in its professional and commercial contractor business. In June 2024, Home Depot completed its $18.25 billion acquisition of SRS Distribution, expanding its home improvement and construction business. SRS specializes in selling roofing products to contractors — which provides cross-selling opportunities with Home Depot’s retail outlets.

Home Depot made the SRS acquisition in the middle of an industrywide downturn — a sign that it is investing for the long term. SRS essentially makes Home Depot even more of a coiled spring for the next cyclical expansion period, potentially amplifying the benefits the company will feel from lower interest rates.

Taking a home improvement rebound for granted

The market is forward-looking and cares more about where businesses are headed than where they have been. And unfortunately for investors considering Home Depot, the stock is already priced as if interest rates will continue to fall.

As you can see in the following chart, Home Depot’s earnings were on the rise leading up to the pandemic, then entered a new phase during the pandemic as consumers accelerated spending on do-it-yourself home improvement projects, driven by low interest rates.

HD Chart

HD data by YCharts

But Home Depot’s earnings have been ticking down in recent years even though its stock price is around an all-time high — suggesting that investors are looking past the company’s near-term struggles in anticipation of a recovery.

In February, Home Depot raised its dividend by the lowest amount in 15 years and issued a dire warning to investors about a prolonged downturn in the home improvement industry. So it could take several interest rate cuts to really move the needle on consumer spending at Home Depot.

In the meantime, the stock is on the expensive side, with a price-to-earnings ratio of 28.2 and a forward P/E of 27.7 compared to a 10-year median P/E of just 23. Meaning that Home Depot’s earnings would need to grow 20% faster than its stock price just for the valuation to come back down to historical averages over the last decade.

A quality company at a premium valuation

Home Depot is an excellent company, but it is already priced for a recovery. So the stock isn’t a screaming buy now.

The good news is that Home Depot could still be a good buy for long-term investors who believe in the company’s potential for store expansions, same-store sales growth, and that the SRS acquisition will pay off. If Home Depot enters a multiyear period of double-digit earnings growth, its valuation could quickly come down, making the stock more attractive.

Home Depot could also reaccelerate its dividend growth rate, building on its 16-year track record of consecutive annual dividend raises. Home Depot yields 2.2% — which is better than the 1.2% yield of the S&P 500.

All told, Home Depot isn’t a no-brainer buy now because the stock price has run up ahead of anticipated rate cuts. But it’s still a decent buy for long-term investors.

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Federal Reserve Chairman Jerome Powell Just Cut Interest Rates. 3 Top Stocks to Buy Now.

These stocks will benefit in a big way from heightened economic activity.

It wasn’t a big surprise that Federal Reserve Chairman Jerome Powell cut interest rates at the Fed’s September meeting on Wednesday. In July, he implied in no uncertain terms that a rate cut was coming, and the likelihood was that it was going be a quarter of a point. That’s what has happened. The governing body also signaled that two more cuts would come at its next two meetings, in October and December.

Powell noted that there are mixed signals in the economy, which made it a difficult decision. Normally, the Fed keeps rates high until inflation backs down, and right now, inflation is higher than the Fed wants it to be. Nonetheless, the once-strong job market is beginning to falter, and a reduction in interest rates should stimulate the economy and employment opportunities.

A more active economy with more jobs and money flowing is great news for most businesses, and some companies will feel the change more acutely. Visa (V 1.19%), SoFi Technologies (SOFI 4.96%), and Carnival (CCL -2.86%) (CUK -2.67%), are three stocks that should benefit in a big way.

Three people shopping in a mall.

Image source: Getty Images.

1. Visa: The best indicator of spending habits

Visa is the largest credit card company in the world, and its performance tells the story of the economy to some degree. Because it’s a credit card network, its processed volume is a strong indication of how people are spending. And because it targets a wide range of demographics, its message is fairly universal.

The purpose of cutting interest rates is to boost the economy, and Visa is a major beneficiary of higher spending. Visa’s core business is providing the network, or infrastructure, that moves money from a customer’s partnering bank to a merchant, taking a small cut of each transaction. Although it has branched out to other services, they mostly center around different ways of moving money. More money flowing means more money for Visa.

It has been performing well despite the higher interest rates. In the 2025 fiscal third quarter (ended June 30), revenue increased 14% year over year, and payments volume was up 8%. It’s highly profitable, since it has a simple, low-cost model, and net income increased 8% over last year in the quarter.

Lower interest rates should further boost Visa’s earnings, benefiting this Warren Buffett-backed stock. Visa is a solid long-term investment, offering value to most portfolios.

2. SoFi: A young bank disruptor

Banks have a two-sided relationship with interest rates. They make more money on net interest income when rates are higher, but they also suffer from higher default rates because consumers struggle to pay back loans. They also take out loans at lower rates for that reason, and altogether, banks usually do better with lower rates.

That goes for the industry as a whole, but I’m picking SoFi in particular partly because of its large lending segment, and partly because it’s growing much faster than almost any other bank, which means it stands to gain a lot from an improving economy.

SoFi is a neobank, a cadre of digital banks that have no physical branches and offer a modern take on financial management. In addition to student, personal, and home loans, it offers a broad array of standard banking services and typically beats out national averages on savings rates for deposits.

It also offers non-standard services like cryptocurrency trading on its app, and it recently said it would offer international money transfers on a Blockchain network. That could offer real value, since sending money internationally is often a complicated, expensive, and long process.

SoFi’s lending segment struggled last year when interest rates were at a high, and it has already benefited from lower rates with accelerated revenue growth and better credit metrics. Even lower rates should help all of its segments, which, aside from lending, include financial services, like bank accounts and investing, and tech platform, which is a business-to-business financial infrastructure.

As it becomes a larger and more formidable player in finance, it should be able to weather future uncertainty even better.

3. Carnival: Great performance, high debt

Carnival is sailing through smooth seas as customers continue to sign up for its cruises. Demand is at historical highs, operating income is at a record, and the company is ordering new ships and launching new destinations to meet all of this demand.

There’s only one kink in the business: it has massive debt. It’s been paying it off responsibly, but it’s still more than $27 billion. This year, it has refinanced $7 billion at better rates, saving millions on interest. It will now be able to refinance more of its debt at lower rates.

Outside of the debt, the investment thesis for Carnival is strong. It’s the largest global cruise operator, and demand has stayed healthy despite high inflation. That’s resiliency.

Carnival stock is still cheap today due to the concerns about the debt, but as it pays it down and becomes more profitable, expect the stock to keep climbing.

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Clifton Powell says agent fired him over another ‘little Black movie’

Clifton Powell is unapologetically dropping the name of the agent who he alleges fired him for taking a role in the 2005 musical “The Gospel.”

“My agent at the time, and I’ll say his name, his name is Jeff Witjas at APA,” the veteran actor told “The Art of Dialogue” last week on YouTube. “He called me and said, ‘You’re doing another one of those little Black movies?’ I said, ‘You’re damn right. I got a family to feed’ and hung up the telephone on his ass and they let me go.”

Witjas did not respond immediately Friday to The Times’ request for comment.

One of Hollywood’s famous “Oh, that guy” character actors is headed toward 300 credits in his prolific career. Powell, 69, has appeared in Oscar-winning films like the 2004 biopic “Ray,” critically acclaimed films like the 1993 crime drama “Menace II Society” and box office juggernauts like the 1998 buddy-cop comedy “Rush Hour.”

Throughout his career, Powell said he doesn’t let his representation dictate the projects he takes. When picking his projects, the actor follows advice given to him by Jamie Foxx years ago.

“He said, ‘Clif Powell, keep one foot in…’ that means keep one foot in with your people and I’m always going to be with the people, because African Americans, and young white kids, young Asians, Latinos and women have made me a household name.”

Powell said his mentality has paid dividends. The director of “The Gospel” later cast him in Peacock’s critically hailed crime drama “Fight Night: The Million Dollar Heist.”

His hiccup with a top acting agency did not slow down his career. Based on his IMDb page, Powell has remained a working actor and kept his family well fed. But there are certain roles his personal boundaries have ruled out: gay roles.

“It’s not militant. It’s just that I’m — certain things I’m just not comfortable with,” Powell said.

One role that did fall within his zone of comfort was a part in 2Pac’s dystopian music video for “California Love,” where his character is introduced as “Monster” by a high-pitched Chris Tucker.

“A lot of people still don’t know that’s me … everybody thinks that’s George Clinton,” Powell said on “The Art of Dialogue.”

So shout his name next time the video plays, instead of saying “That’s the guy from ‘Rush Hour.’” That guy’s name is Clifton Powell.

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Hiltzik: Do you really want Trump directing monetary policy?

It’s probably safe to say that almost no one following the news believes that Donald Trump has a solid, defensible reason to fire Federal Reserve Board Governor Lisa Cook, as he purported to do Monday, notwithstanding his assertion that she is guilty of “potentially criminal conduct.”

It’s not only that the charge she falsified information on mortgage applications is unproven, or that even on their face the accusations are thinner than onion-skin paper.

It’s that Trump has telegraphed his true objective loud and clear virtually from the inception of his current term: to destroy the Fed’s independence so he can force it to act in accordance with what he sees as his immediate political advantage, chiefly by cutting interest rates at a time when that would be economically irrational.

No one’s claiming that central bankers are going to be perfect at their jobs. What we’re saying is that they’re going to be better than the alternative.

— Peter Conti-Brown, Wharton School

He has pursued this objective in several ways. He has consistently denigrated the work of Fed Chairman Jerome Powell, questioning why Powell was ever appointed (and forgetting that he was the president who appointed Powell).

He has carried on about the cost of a renovation of the Fed’s Washington headquarters building, even misrepresenting the cost and nature of the project, suggesting that it points to Powell’s managerial ineptitude.

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And now he’s trying to fire Cook, one of Powell’s supporters on the Fed board. Whether he can do so in the face of Cook’s refusal to go is unclear, and likely to be judged on by the Supreme Court.

That leads us to the principle of Federal Reserve independence and its critical importance for the health of the U.S. economy.

The Fed isn’t the only central bank that cherishes its independence. Most central banks in developed countries do too, although they solidified their status at different times — the Bank of England gaining operational independence over monetary policy in Britain only in 1997.

To be fair, the character of central bank independence has always been murky. “Central banks do not and should not operate in a vacuum,” Tobias Adrian and Ashraf Khan of the International Monetary Fund observed in 2019, acknowledging that “as public institutions, central banks should be held properly accountable to lawmakers and to society.”

Indeed, to paraphrase Finley Peter Dunne’s Mr. Dooley, throughout its own history the Fed, like the Supreme Court, has “followed the election returns.”

That is, it’s rare for the central bank to range too far from what the public expects from government economic management. In any event, the Fed is a creation of Congress, which could theoretically expand or narrow its monetary policy authority and structure its board to make it more responsive to partisan politics.

The consensus among economists is that doing so would be unwise. Political leaders who have made their central banks subservient to their own policies have almost invariably learned the consequences the hard way, as economists across the economic spectrum observe.

“If a legislature or executive can order the central bank to print money,” wrote Thomas L. Hogan of the conservative American Institute for Economic Research in 2020, “then the government can spend without limit …which can lead to hyperinflation and economic disaster as seen in countries such as Zimbabwe, Venezuela, and Argentina.”

That’s a lesson that economists began urging on Trump as he stepped up his attacks on the Fed. “No one’s claiming that central bankers are going to be perfect at their jobs,” Peter Conti-Brown of the Wharton School said recently. “What we’re saying is that they’re going to be better than the alternative. The alternative is setting interest rate policy from the Oval Office, according to the whims of whatever the president wants to see that day. That’s the main alternative to central banking. And that’s what’s under threat today.”

The United States also learned the value of an independent Fed the hard way. For more than three decades after its creation in 1913, the Fed was largely a handmaiden of the U.S. Treasury; the Treasury secretary and comptroller of the currency were ex officio members of its board, and the Treasury secretary presided over its meetings.

That version of the Fed proved unequal to managing macroeconomic policy as the Great Depression deepened. It had few powers with which to set policy, especially with Franklin Roosevelt taking the reins of economic policy in his own hands.

FDR unilaterally took the U.S. off the gold standard in 1933. He would set the price of gold every morning with aides at his bedside, prompting the British economic sage John Maynard Keynes to complain directly to Roosevelt that “the recent gyrations of the dollar” looked to him “like a gold standard on the booze.”

Roosevelt eventually gave up on manipulating the price of gold and consequently the value of the dollar. He also recognized that the nation needed a firmer, professional hand on the monetary faucet. The solution came from the progressive-minded Utah banker Marriner Eccles, whom FDR tasked with remaking the Fed.

Eccles is almost entirely unknown to the public, but he’s revered among economic policy wonks — which explains why his name is on the Fed headquarters building. After FDR appointed him to head the Federal Reserve Board, Eccles oversaw the drafting of the Banking Act of 1935, which centralized monetary policy in the Fed board and gave it new powers to manage the money supply. Eccles remained the board’s chairman until 1948 and remained a board member until 1951.

Despite those reforms, however, the Fed remained tied to political imperatives, chiefly the financing of America’s fiscal needs during World War II, policies firmly under the control of the Treasury. “We are not masters in our own house,” one Fed bank governor lamented.

That began to change in 1950, when the process of paying for war expenses had triggered an inflationary spiral. The consumer price index rose by 17.6% in 1946-47 and another 9.5% the following fiscal year, thanks in part by the end of wartime price controls and the “pegging” of long-term treasury bond rates at 2.5%.

The onset of the Korean War in 1950 threatened more inflation. President Truman insisted on leaving the peg at 2.5% in order to limit the cost of government spending on the new war. Eccles and others on the Fed board feared, however, that keeping the rate from rising above 2.5% would require the Fed to keep buying T-bonds, which pumped more dollars into the money supply and fueled inflation. The Fed wanted to allow rates to rise, which was anathema to the White House.

This concern placed the Fed in open conflict with Truman and his Treasury secretary, his crony John Wesley Snyder. The Fed and Snyder engaged in increasingly acrimonious meetings, after one of which the White House issued a communique that falsely stated that the Fed had agreed to follow the administration’s demands. The Fed then issued its own statement, directly contradicting Truman’s.

Truman maintained publicly that keeping rates low was crucial for the fight against communism. “I hope the Board will … not allow the bottom to drop from under our securities,” Truman said, referring to the decline of treasury prices if the board let rates rise. “If that happens, that is exactly what Mr. Stalin wants.” Eccles, for his part, told Congress that if the Fed were forced to maintain the 2.5% peg, that would make the Fed itself “an engine of inflation.”

The war of words continued, until Assistant Treasury Secretary William McChesney Martin took over negotiations with the Fed from Snyder, who was recovering from surgery. Martin broke the logjam. The result was the Treasury-Fed Accord of March 4, 1951, a landmark document in Federal Reserve history. The accord gave the Fed full rein to manage short-term interest rates in return for its keeping long-term rates within the peg until the end of that year.

Truman appointed Martin as Fed chairman a few weeks later; some saw the appointment as a Treasury takeover, but Martin proved to be a firm advocate of Fed independence. The accord, as explained by Robert L. Hetzel of the Richmond Fed and Ralph Leach, who personally witnessed the 1951 negotiations, “marked the start of the modern Federal Reserve System” and established the central bank’s “dual mandate” of promoting stable prices and maximizing employment.

That doesn’t mean that the Fed rigorously honored its hard-won independence. Fed Chairman Arthur Burns acceded to Richard Nixon’s urging to keep rates low in advance of the 1972 presidential election. It was a disastrous misstep. Inflation soared, especially during the Arab oil embargo, peaking at nearly 15% in 1980.

It fell to Paul Volcker, who became chairman in 1979, to use the Fed’s authority to slay the inflationary beast. Volcker drove the Fed’s key rate nearly to 20%, provoking a recession and a sharp rise in unemployment. But the inflation rate fell back to 3.8% by 1983 and as low as 1.1% in 1986. Volckeer’s actions arguably set the stage for Ronald Reagan’s defeat of Jimmy Carter in 1980, but arguably he could not have taken the stringent measures needed to bring inflation down if he bowed to Carter’s electoral needs.

Former Fed Chair Ben Bernanke set forth the perils of political influence on the Fed in 2020, warning that central banks subjected to political pressure might “overstimulate the economy to achieve short-term … gains.” Those may be “popular at first, and thus helpful in an election campaign, but they are not sustainable and soon evaporate, leaving behind only inflationary pressures that worsen the economy’s longer-term prospects.”

That’s the prospect facing the U.S. as Trump keeps trying to erode the Fed’s independence, insisting on a rate cut no matter the overall economic environment. As it happens, he may get the rate cut he desires, but only because his tariff and immigration policies are sapping America’s economic strength, producing a slump that warrants a reduction.

Where will we go from here? Powell’s term as Fed chair expires next May. He has been admirably protective of the bank’s independence while in office, but it’s a safe bet that his Trump-appointed successor won’t be so solicitous. Harder times for the Fed, and the economy, may lurk over the horizon.

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Lewis F. Powell, Former Supreme Court Justice, Dies at 90

Retired Supreme Court Justice Lewis F. Powell Jr., the soft-spoken, courtly Virginian whose decisions set the nation on a middle-road course on the issue of race and affirmative action, died Tuesday at age 90.

Increasingly frail and weak in recent years, Powell had retreated to his Richmond, Va., home, where he died in his sleep, the court announced.

Powell–the crucial swing vote on the nine-member court–was often referred to as the most powerful lawyer in America. He had never served as a lower court judge.

On matters ranging from civil rights and affirmative action to the death penalty and abortion, his decision often became the court’s decision. He was a moderate-liberal on civil rights and civil liberties and a conservative on crime. As a result, so was the court during his 15 years on the bench.

President Clinton praised him as “one of our most conscientious and thoughtful justices [who] approached each case without an ideological agenda. His opinions were a model of balance and judiciousness.”

His retirement in 1987 set up a contentious battle over the nomination of Robert H. Bork, a conservative who was rejected in the Senate as too ideological.

A white Southerner who grew up in the era of rigid segregation, Powell nonetheless played the key role in preserving affirmative action as an open door of opportunity for a generation of minority students.

In the celebrated Bakke case of 1978, Powell stood alone but forged a compromise position that has remained as the law ever since.

A white 38-year old civil engineer from Los Altos, Calif., Allan Bakke had charged the medical school at UC Davis with discrimination because he had been rejected for admission despite high grades and test scores. The school reserved 16 of its 100 slots for minority students.

Joining four conservative colleagues, Powell rejected the use of such quotas or fixed formulas that reserved positions for black, Latino or Asian students. However, he wrote separately to say that race can be taken into account as “a plus factor” when evaluating individual minority applicants.

Despite two decades of debate and dispute since, Powell’s formula has remained the federal constitutional standard governing affirmative action in colleges and universities. California voters amended the state’s Constitution in 1996 to prohibit preferential treatment by race in the state’s colleges.

Uncommonly Gentle and Courteous Man

Among his Supreme Court colleagues, Powell is remembered best not for particular decisions but as an uncommonly sweet, gentle and courteous man.

“I have known no one in my lifetime who is kinder or more courteous than he,” said Justice Sandra Day O’Connor, who formed an especially close bond with Powell when she joined the formerly all-male court in 1981. “He graced the lives of all who had the privilege of his company and counsel.”

“All of us admire your extraordinary capacity to forcefully participate in our private and public debates without ever allowing advocacy to degenerate into contentiousness,” the justices said in a letter to Powell upon his retirement.

His biographer, University of Virginia law professor John C. Jeffries, said Powell “came from an older and grander tradition where the lawyer was a public citizen. He had a sense [that] he owed a lot to his country and to his community and he spent years serving in a variety of thankless tasks. He was a member of the school board, served on the state education board and raised money for legal aid for the poor.”

He did not aspire to serve on the nation’s highest court, however.

The Nixon White House, eager to appoint a Southerner to the court, had twice approached Powell but he rejected those overtures. Finally, in 1971, he reluctantly accepted Nixon’s nomination. He believed he was too old at age 64 to start a judicial career and relented only after the president called personally to say it was his duty to serve.

“Ten years of Lewis Powell on the court was worth 20 years of anyone else,” Nixon said at the time.

The nomination drew wide praise and Powell won Senate confirmation on an 89-1 vote. He officially joined the court in January 1972, at the same time as Associate Justice William H. Rehnquist, later to become chief justice.

Along with two other Nixon appointees–Chief Justice Warren E. Burger and Justice Harry Blackmun–the new quartet was supposed to end the liberal activism of the court under the late Chief Justice Earl Warren and usher in a law-and-order era.

But it did not work out just that way. In 1972, the court struck down the death penalty as unconstitutional, with Powell and the other Nixon appointees in dissent.

The following year, the court struck down all of the nation’s abortion laws in the case of Roe vs. Wade. Powell joined Blackmun’s opinion that spoke for a 7-2 majority.

Powell never wavered from his view that a woman had the right to end an unwanted pregnancy. However, he later joined his more conservative colleagues to rule that the government need not fund abortions for poor women. This compromise approach also has remained the law.

Crucial Votes for Death Penalty

Though no fan of the death penalty, Powell provided a crucial vote in 1976 to restore capital punishment as an option for the states. He also wrote the court opinion for a 5-4 majority in 1987 that rejected a challenge to the death penalty as racially biased.

Dismissing data showing that murderers of whites in Georgia were more likely to receive death sentences than murderers of blacks, Powell focused narrowly on the cop killer whose case came before the court. Having shot a police officer at close range during a robbery, Warren McCleskey deserved the punishment he received, Powell concluded, and the statistics did not prove otherwise.

After retiring from the court, the justice said he regretted one decision.

In June 1986, after weeks of indecision, Powell cast the crucial fifth vote to uphold Georgia’s anti-sodomy law in the case of Bowers vs. Hardwick. At the time, he said, he might have voted differently had the gay man who brought the case actually been prosecuted. But years later, Powell said in an interview that he “probably made a mistake” and should have voted to strike down such laws as flatly unconstitutional.

“The truth is he was never of one mind on Bowers. He remained in doubt,” said Jeffries, who was clerk to Powell. “On the one hand, he thought the sodomy laws were barbaric. On the other hand, he didn’t think the Supreme Court was the right place to lead a revolution on gay rights.”

Powell’s resignation at the end of the court term in June 1987 set off one of the momentous court struggles of the 20th century.

President Reagan, seeking to cement a conservative majority, nominated U.S. appeals court Judge Bork to succeed him. But after a summerlong battle between liberal and conservative interests and a week of televised confirmation hearings, the Senate rejected Bork.

Reagan’s second nomination, of Judge Douglas H. Ginsburg, also failed when the former Harvard Law School professor admitted that he had regularly smoked marijuana. Finally, Reagan found a replacement for Powell in Judge Anthony M. Kennedy of Sacramento.

Senate Democrats hoped that the new justice would be “another Lewis Powell,” and his nomination was approved unanimously. And to a considerable extent, Kennedy has followed the middle-road course set by his predecessor.

Powell was born Sept. 19, 1907, in Suffolk, Va., near Norfolk, and was the son of a furniture maker. He attended Washington & Lee University, where he was a member of the Phi Beta Kappa honorary society and president of the student body. His legal education came at Washington & Lee, where he graduated first in his class in 1931, and at Harvard University, where he spent a year as a graduate law student before returning to Richmond to practice law.

He married Josephine M. Rucker in 1936 and was the father of three daughters and one son. His wife died two years ago.

In World War II, Powell served as a member of a supersecret Allied Unit in Bletchley, England, engaged in cracking German war codes.

After the war, he went into private law practice in Richmond and generally represented corporations. He served as president of the American Bar Assn. in 1965 and the American College of Trial Lawyers in 1969.

He Was ‘Exceptionally Wise,’ Stevens Says

Nixon elevated him to the Supreme Court upon the death of Justice Hugo Black.

He joined a court that had powerful liberals, such as Justices William J. Brennan and Thurgood Marshall, and staunch conservatives, such as Rehnquist, but he joined neither faction. He won unstinting praise, however, as a model Supreme Court justice.

“I prized my association and friendship with him throughout his 15 years of service on the court and after his retirement in 1987,” Rehnquist said in a statement issued by the court. “He was the very embodiment of ‘judicial temperament’: receptive to the ideas of his colleagues, fair to the parties to the case but ultimately relying on his own seasoned judgment.”

“Lewis Powell was a true gentleman, a loyal and exceptionally wise man,” added Justice John Paul Stevens. “He served the country that he loved faithfully and as well as anyone I have ever known.”

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

His Influence on the Court

President Richard M. Nixon nominated Lewis Franklin Powell, Jr. to the Supreme Court on Oct. 21, 1971. His confirmation by the Senate was quick and overwhelming, with an 8-1 vote. Much of his 16 years on the Supreme Court was spent establishing compromise between a court evenly split along ideological lines. He retired on June 26, 1987.

His influence is seen in the following rulings:

FIRST AMENDMENT

June 1972: He wrote the majority opinion upholding the right of the owner of a shopping plaza to limit the distribution of anti-war pamphlets on his property.

June 1974: Powell ruled that a non-public figure could recover damages from the media for “negligence” instead of the previous and more exacting standard of “actual malice.”

April 1978: In First National Bank vs. Bellotti, writing for the majority, Powell maintained that the right of a corporation to donate to a political campaign is protected political speech.

****

RACIAL DISCRIMINATION

July 1974: In Milliken vs. Bradley, he voted against achieving integration by busing students across school district lines.

April 1977: In Village of Arlington Heights vs. Metropolitan Housing Development Corporation, Powell wrote that zoning boards could restrict low-income housing as long as their motive was not racial.

June 1978: Powell developed a compromise position between two groups of judges in University of California Regents vs. Bakke. He asserted that colleges were entitled to pursue diversity as a goal, but they were not allowed to use quota systems based on race to achieve that goal.

****

PRESIDENTIAL POWER

June 1972: Powell wrote that the president could not use electronic surveillance domestically without a warrant.

June 1982: Powell wrote the majority opinion in Nixon vs. Fitzgerald that incumbent presidents are immune from civil damage suits for actions they take while in office.

****

ON ABORTION

January 1973: In Roe vs. Wade Powell sided with the majority opinion that the decision of a woman whether to perform an abortion during her first trimester of pregnancy was protected under the 14th Amendment.

June 1983: Powell wrote in Planned Parenthood Assn. of Kansas City, Missouri vs. Ashcroft, Ashcroft that a Missouri law requiring a minor to obtain parental or judicial consent before obtaining an abortion was constitutional.

****

ON SELF-INCRIMINATION

May 1972: Powell wrote in Kastigar vs. United States the majority opinion that any evidence obtained under a grant of immunity cannot be used in any subsequent prosecution of that person.

Researched by TRICIA FORD / Los Angeles Times

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Fed Chair Jerome Powell talks inflation, employment, no firm rate cut details

Federal Reserve Chair Jerome Powell, seen here at a press conference at the Federal Reserve in Washington, D.C. in July. He gave a speech about the economy on Friday, but did not specifically mention interest rate cuts. Photo by Bonnie Cash/UPI | License Photo

Aug. 22 (UPI) — Federal Reserve Chairman Jerome Powell on Friday did not give a clear indication of the central bank’s plans to possibly cut interest rates amid pressure from President Donald Trump but spoke to the difficult conditions affecting decisionmakers.

Speaking from the annual Economic Policy Symposium in Jackson Hole, Wyoming, Powell said “in the near term, risks to inflation are tilted to the upside, and risks to employment to the downside” referring to two factors the Fed uses to determine if rates should change or stay as is, the latter of which is considered a barrier to inflation.

“In terms of the Fed’s dual-mandate goals, he labor market remains near maximum employment, and inflation, though still somewhat elevated, has come down a great deal from its post-pandemic highs. At the same time, the balance of risks appears to be shifting,” he said.

Mentioning “risks” was the closest Powell came to declaring rate cuts are in the works, which some investors are expecting to be enacted when the Federal Open Market Committee next meets in September.

Powell noted that while the Fed’s dual mandate requires “balance,” but also added that “the stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance.

“The Fed also announced Friday that the Federal Open Market Committee, or FOMC, which decides interest rates, has approved its latest updated “Statement on Longer-Run Goals and Monetary Policy Strategy,” which explains how it handles monetary policies and uses it to guide policy actions.

In a press release, the committee stated that it’s “prepared to act forcefully to ensure that longer-term inflation expectations remain well anchored.”

“Therefore, the Committee’s policy decisions reflect its longer-run goals, its medium-term outlook, and its assessments of the balance of risks, including risks to the financial system that could impede the attainment of the Committee’s goals,” the committee further stated.

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European markets turn cautiously optimistic ahead of Powell speech


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Leading European stock markets reflected a cautiously positive sentiment on Friday as investors watched for progress on Ukraine peace talks and awaited a speech from US Federal Reserve chair Jerome Powell. He will speak on Friday at Jackson Hole, where central bankers gather for their annual meeting. 

Markets also digested details of an EU-US trade truce and better-than-expected business activity data, announced on Thursday.

Despite the news that the German economy shrank more than initially estimated in the second quarter, the German DAX changed direction and made up its earlier losses, gaining around 0.1% after 11.00 CEST.

The FTSE 100, though trading in negative territory all morning, also followed suit and changed course, gaining a few points by late morning.

The Paris CAC 40 was up 0.2%, the Madrid IBEX 35 rose by 0.4%, and the European benchmark STOXX 600 increased by 0.2%. 

As for the London blue chip index, the early morning slight dip appeared to be just a small correction. “The FTSE 100 saw a subdued start on Friday after achieving a record close above 9,300 yesterday,” said AJ Bell investment analyst Dan Coatsworth in his note.

Investors are focusing on the message Federal Reserve chair Jerome Powell might deliver at the Jackson Hole summit in Wyoming.

“Investors had been expecting a rate cut from the Fed next month so if Powell were to say anything suggesting rates might be kept on hold, it could see stocks come under greater pressure,” said Coatsworth. He added that robust PMI data from the US on Thursday pointed to a strong economy, potentially reducing the chances of the Fed lowering borrowing costs.

A cut in interest rates would be the first of the year and it would give asset prices and the economy a boost — but it could also risk worsening inflation.

The Fed has been hesitant to cut interest rates this year out of fear that President Donald Trump’s tariffs could push inflation higher, but a surprisingly weak report on employment growth earlier this month suddenly shifted focus towards the job market. Trump, meanwhile, has forcefully pushed for cuts to interest rates, directing fierce criticism towards Powell.

US markets closed in a gloomy mood

On Wall Street on Thursday, the S&P 500 slipped 0.4% to 6,370.17, continuing a gradual decline since a record on 14 August. The Dow Jones Industrial Average dropped 0.3% to 44,875.50, and the Nasdaq composite fell 0.3% to 21,100.31.

In other dealings early on Friday, the US dollar rose to 148.48 Japanese yen, from 148.37 yen. The euro slipped to $1.1590 from $1.1606.

Meanwhile, oil prices fell by midday in Europe; the US benchmark crude lost 0.2% and was traded at $63.38 per barrel. Brent crude, the international standard, also was down by 0.2% at $67.52 per barrel.

Oil prices moved higher yesterday, “as the initial enthusiasm over progress towards a ceasefire between Russia and Ukraine continues to fade”, said ING in a note. Expectations of increased global uncertainty are driven by the difficulties of setting up a Putin-Zelensky summit and securing potential security guarantees for Ukraine.

Asian markets were also mixed on Friday

Asian shares were also mixed on Friday. In Tokyo, the Nikkei 225 rose less than 0.1% to 42,633.29 after Japan’s core inflation rate slowed to 3.1% in July, from 3.3% in June.

ING Economics said in a note that price pressures were broadly in line with market consensus. Inflation staying above 3% raises the likelihood of a rate hike as soon as October, it said.

In Chinese markets, Hong Kong’s Hang Seng index rose 0.9% to 25,339.14. The Shanghai composite index climbed 1.5% to 3,825.76.

South Korea’s Kospi added 0.9% to 3,168.73. Australia’s S&P/ASX 200 fell 0.6% to 8,967.40 as traders sold to lock in gains after the benchmark surged to record highs in recent trading sessions.

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US DOJ to probe Fed Reserve’s Cook, urges Powell to remove her: Report | Politics News

Cook, who has been accused of mortgage fraud, has said she will not be bullied by Trump into resigning.

The United States Department of Justice plans to investigate Federal Reserve Governor Lisa Cook, with a top official informing Federal Reserve Chair Jerome Powell of the probe and encouraging him to remove her, Bloomberg News has reported.

A letter to Powell from Ed Martin, a Department of Justice (DOJ) official who has led similar investigations into Senator Adam Schiff of California and New York Attorney General Letitia James, said Cook’s case “requires further examination”, Bloomberg reported on Thursday.

“At this time, I encourage you to remove Ms Cook from your Board,” Martin wrote, according to Bloomberg. “Do it today before it is too late! After all, no American thinks it is appropriate that she serve during this time with a cloud hanging over her.”

The DOJ did not immediately reply to a request for comment.

Asked about the report, a Fed spokesperson referred to Cook’s statement on Wednesday, when she said she had no intention of being “bullied” into resigning after President Donald Trump called for her to step down on the basis of allegations made by a member of his administration about mortgages she holds in Michigan and Georgia.

The Federal Reserve Act provides no authority for a Fed chair to remove another member of the Board of Governors.

Cook, the first Black woman to be a Fed governor, is serving a 14-year term that began after her second Senate confirmation in 2023.

The effort to remove Cook comes as the administration has unleashed a campaign against diversity, equity and inclusion (DEI), and intensifies Trump’s ongoing effort to gain influence over the US central bank and push it to lower interest rates.

Fed under pressure

Central bankers from around the world gathered on Thursday in Grand Teton National Park for the opening of the Kansas City Fed’s annual Jackson Hole symposium, where Powell will give a keynote speech on Friday, sketching out his view of the economy and, investors hope, where rates are headed.

“I would just say that I know her to be an outstanding economist and a person of high integrity,” Cleveland Fed President Beth Hammack told Yahoo Finance at the event.

US Federal Housing Finance Agency director William Pulte, who referred the allegations of Cook’s wrongdoing to the Department of Justice this week, said they arose as part of regular investigations into mortgage fraud by his agency and were not a “witch-hunt”.

“Defrauding people is nothing new,” Pulte told Bloomberg Television. “I believe that she committed mortgage fraud.”  He said that public records clearly show fraud and that a special exemption should not be made for the powerful. He said the fraud is “self-evident”.

Cook has yet to expressly address Pulte’s accusation, saying only in Wednesday’s statement: “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve, and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”

The Fed has held borrowing costs steady all year in the 4.25 percent to 4.5 percent range out of concern that Trump’s tariffs could reignite inflation that is still running above the Fed’s 2 percent goal. Recent weaker labour market data – including a report showing job gains averaged a paltry 35,000 from May to July – has increased Fed policymaker concern that borrowing costs may be a bit too high, and financial markets are priced for the likelihood of a quarter-point interest-rate cut at the Fed’s September meeting.

That would be far short of the several percentage points that Trump has called for.

Trump can name a new chair when Powell’s term ends in May. US Treasury Secretary Scott Bessent, who is leading the search, has nearly a dozen candidates, and all have voiced their support for big rate cuts and big changes to the central bank. Traditionally, Fed chairs resign when their leadership term ends, but there is some speculation that Powell would stay on until his term as governor ends in 2028, denying Trump the chance to install more loyalists to consolidate his control over the central bank.

Trump has nominated Council of Economic Advisers Chairman Stephen Miran, a Fed critic and enthusiastic supporter of Trump’s tariffs and other policies, to serve at the Fed in the seat vacated by the surprise resignation this month of Adriana Kugler.

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THE POWELL ANNOUNCEMENT : General’s O.C. Kin Support Decision : Reaction: Sister and niece concede stress had been building. Opinions among Nixon Library crowd are sharply divided.

Lisa Berns, the niece of retired Gen. Colin L. Powell, passed by a newsstand in Los Angeles over the weekend and found herself reacting with dread and alarm to the news that Israeli Prime Minister Yitzhak Rabin had just been assassinated.

The Orange County woman’s reaction surfaced again Wednesday, when her uncle announced he would not be running for President, a decision that, in Berns’ words, “hasn’t ruined my day. . . . It takes a lot of the pressure off of us. It takes the worry away.”

“People in public office just put themselves at risk every day, so I’m not unhappy that he decided not to run,” she said.

Lisa Berns’ mother, Marilyn Berns, whose only sibling is Powell, said she had never discussed the dangers of running for office with her brother, “But I know that it concerned us–my husband and our family. I think Colin’s decision was made prior” to Saturday’s tragedy in Israel.

“I wasn’t surprised [by Wednesday’s announcement] because Colin called me [Tuesday] night and told me what his decision was,” said Marilyn Berns, 64, a teacher at Martin Elementary School in Santa Ana until her retirement in June. “I’m pleased about the decision. It’s important to us that he do the thing he feels most comfortable with. . . . We were all getting very edgy about it.”

Berns said that her brother’s consideration of seeking the presidency had left his family subject to prolonged stress.

“There was this monumental decision that had to be made,” Marilyn Berns said. “Both of them [Powell and his wife, Alma], along with their kids, were just meeting and meeting and thinking it over. I didn’t realize until I spoke to him the gravity of what my brother was dealing with. That was very disturbing to me. I got a little teary over that.”

Elsewhere in Orange County, the response was less personal and more political as Democratic and Republican leaders found a common ground: Albeit for their own reasons, both parties agreed that Powell had done the right thing–the only thing he could do, really–in not seeking the White House.

But private citizens throughout the county reacted glumly, saying that Powell’s decision deprived American voters of a candidate whom many felt was potentially the best President of anyone in public life.

Others expressed relief, however, saying the timing just didn’t feel right.

Numerous political pundits said Wednesday that Powell’s wife had been “adamant” about having him decline, language with which both Berns women took issue.

Marilyn Berns said that her sister-in-law “has a lot of input” into her husband’s choices and that “they do things together as a team”–to a point.

Even if Alma Powell had strongly resisted her husband’s running, “she’s not the type of woman who is so forceful that she would ram her views down someone’s throat. That’s not Alma Powell’s style. She gives her input, and that’s it. She doesn’t beat a dead horse.”

“I haven’t talked to my aunt [Alma, Powell’s wife]. I don’t know that she’s adamant about him not running,” said Lisa Berns, a computer saleswoman in Orange County, “but I don’t think she’s got a burning desire for him to run.

“I don’t know what she feels precisely about Rabin’s assassination. I don’t know that it played a big part in their decision, but I will tell you this: I was in L.A. over the weekend visiting friends. I hadn’t been watching the news, or reading the newspaper.

“But at 5 o’clock when I walked by a newsstand and saw that Rabin had been assassinated, my heart sank. I don’t know if anybody else in the family had it cross their minds, but it certainly crossed mine.”

The Berns family is so concerned about its own privacy that both mother and daughter asked not to have published the name of the Orange County community where the family lives.

Despite her uncle’s decision, “I think he would have been great” as President, Lisa Berns said. “I think he would be good at anything he sets out to do. He’s obviously very bright, very well spoken, level-headed, cool. . . . He knows how to work under tremendous pressure in various capacities. He’s a fair person, an eminently decent person.”

On other fronts, Democrats and Republicans across the county were not about to try to persuade Powell to change his mind.

“If he had run, it would have made the Republican [presidential] race even uglier than it is already,” by pitting the moderate Powell against GOP conservatives, said Irvine attorney Jim Toledano, chairman of the Democratic Party in Orange County.

“The announcement comes as no surprise to me,” countered Thomas A. Fuentes, chairman of the Republican Party in Orange County. “I never met a party activist who was favorable to [Powell’s] nomination during all the time the press was touting it.”

It was always the media and never the GOP constituency who wanted Powell to run, Fuentes said, claiming the negative feeling was far more prevalent in the ultraconservative, Republican stronghold of Orange County.

“If there were ever a media-contrived candidacy, this was the best example,” Fuentes said. “To carry our banner requires some time of service to the party and also the full embrace of the values and ideals of the party–and that was lacking.”

Fuentes suggested that party regulars felt the would-be candidate had not yet paid his dues, noting that Powell’s most trusted advisers “obviously shared with him the reality that there was no Powell ground network. There has to be some structure, some network, some reality to a campaign. That not being in place, I think he just came to grips with reality.”

But some people reacted to Wednesday’s news with disappointment.

At the Richard Nixon Library & Birthplace in Yorba Linda, about 150 people watched Powell’s announcement on a big-screen television. Many were both surprised and crestfallen at his decision. “I really thought he had the impetus and the appeal to win,” said 54-year-old Beverly Nocas of Pasadena. “He’s very articulate and I think he could have done a lot for us.”

Norma Canova, a 50-year-old resident of Yorba Linda, said, “I think he could have had a great role in healing racial problems in this country.”

But several onlookers, who had gathered to watch a fashion show called “Dressing the First Lady,” expressed relief.

“I couldn’t vote for him because I don’t know what he stands for,” said 81-year-old Henry Boney of San Diego. “I know that he’s a good salesman though. He created a lot of publicity for his book.”

Newport Beach resident Elaine Parks said she was “very impressed” with Powell, but was heartened by his decision to stay out of the race.

“It would have been divisive to the party, and we need complete unity to beat the current President, which I sincerely hope happens,” Parks said.

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Trump calls on Fed board to take control from Powell over interest rates | Donald Trump News

The US president has hurled insults at Fed Chair Jerome Powell, renewing calls for the Federal Reserve to slash interest rates.

Washington, DC – United States President Donald Trump has called on the Federal Reserve board to wrest control of the central bank from Chairman Jerome Powell and lower interest rates.

In a series of social media posts on Friday, Trump — who has called for lowering interest rates for months — escalated his attacks on Powell, suggesting that the central bank chief should be stripped of his powers.

“Jerome ‘Too Late’ Powell, a stubborn MORON, must substantially lower interest rates, NOW,” Trump wrote.

“IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”

Trump later added that Powell “should also be put ‘out to pasture’.”

Earlier this week, Powell announced that interest rates would remain steady at 4.25 to 4.5 percent.

The central bank’s rates indirectly set the rates for private lending across the country.

When the Federal Reserve, known as the Fed, sees the need to accelerate economic activity, it cuts interest rates to lower the cost of borrowing and pump money into the economy.

Conversely, when prices rise too rapidly, the Fed raises interest rates to bring the cost of living under control.

The central bank operates independently of political officials.

During the COVID-19 pandemic, interest rates plummeted to prevent a prolonged recession during the lockdown.

But as supply-chain disruption and an abundance of money in the economy sparked an inflation crisis in 2022, the Fed hiked interest rates to levels not seen since the 2008 Great Recession.

An advocate for greater investments in the US economy, Trump has been arguing that inflation is now at sustainable levels, so there is no need for interest rates to remain high.

Over the past year, the central bank slashed interest rates by about 1 percent, but Trump has been demanding more aggressive cuts.

On Wednesday, Powell cited a risk of inflation linked to Trump’s trade policies as the reason behind his decision not to drop interest rates.

“Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen,” he told reporters.

Earlier this month, a government report showed that consumer prices rose by 0.3 percent from May to June, compared with 0.1 percent the previous month, as Trump’s tariffs started to set in.

Powell did not rule out that the uptick in prices could be “short-lived”, but he also warned that it may become persistent, arguing for a cautious approach while monitoring inflation.

“For the time being, we’re well positioned to learn more about the likely course of the economy and the evolving balance of risks before adjusting our policy stance,” he said. “We see our current policy stance as appropriate to guard against inflation risks.”

The decision proved controversial, with the Fed board seeing rare dissent from two members, both Trump appointees, who publicly argued for more rate cuts.

On Friday, Trump warned Powell that the dissent “WILL ONLY GET STRONGER“.

Trump also applauded the news that Federal Reserve board member Adriana Kugler, an appointee of former President Joe Biden, would step down on August 8, giving him a new vacancy to fill.

“Too Little, Too Late,” the US president wrote on Friday. “Jerome ‘Too Late’ Powell is a disaster. DROP THE RATE! The good news is that Tariffs are bringing Billions of Dollars into the USA!”

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Trump and Powell bicker over cost of Fed building renovations as president visits site

President Trump publicly scorned Federal Reserve Chair Jerome Powell on Thursday for the cost of an extensive building renovation as the two officials toured the unfinished project.

Trump said the project cost $3.1 billion, much higher than the Fed’s $2.5-billion figure, while Powell, standing next to him, silently shook his head.

“This came from us?” Powell said, then figuring out that Trump was including the renovation of the Martin Building that was finished five years ago.

“Do you expect any more additional cost overruns?” Trump asked.

“Don’t expect them,” Powell said.

Trump said in his career as a real estate developer he would fire someone for cost overruns. The president joked that he would back off Powell if he lowered interest rates.

The Federal Reserve is known for its tight lips, structured formality and extraordinary power to shape the global economy.

Trump and his allies say the renovation of the Fed headquarters and a neighboring building reflects an institution run amok. The Fed allowed reporters to tour the building before the visit by Trump, who, in his real estate career, has bragged about his lavish spending on architectural accoutrements that gave a Versailles-like golden flair to his buildings.

The visit was an attempt to further ratchet up pressure on Powell, whom the Republican president has relentlessly attacked for not cutting borrowing costs. Trump’s criticisms have put the Fed, a historically independent institution, under a harsh spotlight. Undermining its independence could reduce the Fed’s ability to calm financial markets and stabilize the U.S. economy.

“This stubborn guy at the Fed just doesn’t get it — Never did, and never will,” Trump said Wednesday on Truth Social. “The Board should act, but they don’t have the Courage to do so!”

Journalists get rare tour of Fed renovation

On Thursday, reporters wound through cement mixers, front loaders and plastic pipes as they got a close-up view of the active construction site that encompasses the Fed’s historic headquarters, known as the Marriner S. Eccles building, and a second building across 20th Street in Washington.

Fed staff, who declined to be identified, said that greater security requirements, rising materials costs and tariffs, and the need to comply with historic preservation measures drove up the cost of the project, which was budgeted in 2022 at $1.9 billion.

The staff pointed out new blast-resistant windows and seismic walls that were needed to comply with modern building codes and security standards set out by the Department of Homeland Security. The Fed has to build with the highest level of security in mind, Fed staff said, including something called “progressive collapse,” in which only parts of the building would fall if hit with explosives.

Powell, Trump and Sen. Tim Scott (R-S.C.) during Thursday's tour of the Federal Reserve.

Powell, Trump and Sen. Tim Scott (R-S.C.) during Thursday’s tour of the Federal Reserve.

(Julia Demaree Nikhinson / Associated Press)

Sensitivity to the president’s pending visit among Fed staff was high during the tour. Reporters were ushered into a small room outside the Fed’s boardroom, where 19 officials meet eight times a year to decide whether to change short-term interest rates. The room, which will have a security booth, is oval-shaped, and someone had written “oval office” on plywood walls.

The Fed staff downplayed the inscription as a joke. When reporters returned to the room later, it had been painted over.

During the tour, Fed staff also showed the elevator shaft that congressional critics have said is for “VIPs” only. Powell has since said it will be open to all Fed staff. The renovation includes an 18-inch extension so the elevator reaches a slightly elevated area that is now accessible only by steps or a ramp. A planning document that said the elevator will only be for the Fed’s seven governors was erroneous and later amended, staff said.

Renovations have been in the works for a while

Plans for the renovation were first approved by the Fed’s governing board in 2017. The project then wended its way through several local commissions for approval, at least one of which, the Commission for Fine Arts, included several Trump appointees. The commission pushed for more marble in the second of the two buildings the Fed is renovating, known as 1951 Constitution Avenue, specifically in a mostly glass extension that some of Trump’s appointees derided as a “glass box.”

Fed staff also said tariffs and inflationary increases in building material prices drove up costs. Trump in 2018 imposed a 25% duty on steel and 10% on aluminum. He increased them this year to 50%. Steel prices are up about 60% since the plans were approved, while construction materials costs overall are up about 50%, according to government data.

Fed staff also pointed to the complication of historic renovations — both buildings have significant preservation needs. Constructing a new building on an empty site would have been cheaper, they said.

As one example, the staff pointed reporters to where they had excavated beneath the Eccles building to add a floor of mechanical rooms, storage space and some offices. The Fed staff acknowledged such structural additions underground are expensive, but said it was done to avoid adding HVAC equipment and other mechanics on the roof, which is historic.

The Fed has previously attributed much of the project’s cost to underground construction. It is also adding three underground levels of parking for its second building. Initially the central bank proposed building more above ground, but ran into Washington, D.C., height restrictions, forcing more underground construction.

Renovation project could be impetus to push out Powell

Trump wants Powell to dramatically slash the Fed’s benchmark interest rate under the belief that inflation is not a problem, but Powell wants to see how Trump’s tariffs affect the economy before making any rate cuts that could potentially cause inflation to accelerate.

The renovation project has emerged as a possible justification by Trump to take the extraordinary step of firing Powell for cause, an act that some administration officials have played down given that the Fed chair’s term ends in May 2026. Office of Management and Budget Director Russell Vought suggested in a July 10 letter to Powell that changes to the renovations in order to save money might have violated the National Capital Planning Act.

Fed staff said there were just two changes to the plans they had submitted to the National Capital Planning Commission, and neither were significant enough to warrant a resubmission of the plans. They removed a seating area on the roof of the Eccles building, because it was an amenity, and two water features in front of the second building, which they said saved money.

More recently, Trump has said he has no plans to oust Powell, which could be illegal based on a note in a Supreme Court ruling in May. The Supreme Court found that Trump had the power to remove board members of other independent agencies but indicated that a Fed chair could only be removed for cause.

Pushing Powell out also would almost certainly jilt global markets, potentially having the opposite effect that Trump wants as he pushes for lower borrowing costs.

Not everyone in Trump’s administration agrees with the president’s contention that Powell needs to resign.

“There’s nothing that tells me that he should step down right now,” said Treasury Secretary Scott Bessent, whom Trump has floated as a potential replacement for Powell, in a recent interview with Fox Business. “He’s been a good public servant.”

Rugaber, Boak and Megerian write for the Associated Press.

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Trump visits US Federal Reserve HQ amid feud with Chairman Powell | Donald Trump News

United States President Donald Trump arrived at the Federal Reserve’s headquarters in Washington to tour the site of a $2.5bn renovation of two historical buildings, which the White House criticises as overly costly and ostentatious, as tensions escalate between the administration and the independent overseer of the nation’s monetary policy.

Thursday’s rare presidential visit to the Fed is happening less than a week before the central bank’s 19 policymakers gather for a two-day rate-setting meeting, where they are widely expected to leave the US central bank’s benchmark interest rate in the 4.25-4.50 percent range.

Trump has repeatedly demanded that the Fed lower rates by 3 percentage points and has frequently raised the possibility of firing Fed Chairman Jerome Powell, though the president has said he does not intend to do so.

On Tuesday, Trump called the Fed chief a “numbskull”.

On Thursday, Trump publicly scorned Powell for the cost of an extensive building renovation as the two officials began a tour of the unfinished project.

Trump said the project cost $3.1bn, much higher than the Fed’s $2.5bn figure, while Powell, standing next to him, silently shook his head.

“This came from us?” Powell said, before he figured out that Trump was including the renovation of the Martin Building, which was finished five years ago.

“Do you expect any more additional cost overruns?” Trump asked.

“Don’t expect them,” Powell said.

Trump said in his career as a real estate developer, he would fire someone for cost overruns. The president joked that he would back off Powell if he lowered interest rates.

“I’d love him to lower interest rates,” Trump said, as Powell stood by, his face expressionless.

Powell typically spends the Thursday afternoon before a rate-setting meeting doing back-to-back calls with Fed bank presidents as part of his preparations for the session.

Elevated by Trump to the top Fed job in 2018, and then reappointed by former President Joe Biden four years later, Powell last met with Trump in March when the Republican president summoned him to the White House to press him to lower rates.

The visit takes place as Trump battles to deflect attention from a political crisis over his administration’s refusal to release files related to convicted sex offender Jeffrey Epstein, reversing a campaign promise. Epstein died in 2019.

White House officials have ramped up Trump’s pressure campaign on Powell in recent weeks, accusing the Fed of mismanaging the renovation and suggesting poor oversight and potential fraud.

White House budget director Russell Vought has pegged the cost overrun at “$700m and counting”, and Treasury Secretary Scott Bessent called for an extensive review of the Fed’s non-monetary policy operations, citing operating losses at the central bank as a reason to question its spending on the renovation.

Those losses stem from the mechanics of managing the Fed’s policy rate to fight inflation, which include paying banks to park cash at the central bank. The Fed reported a comprehensive net loss of $114.6bn in 2023 and $77.5bn in 2024, a reversal from years of big profits it turned over to the Treasury when interest rates – and inflation – were low.

Renovations in the spotlight

The Fed, in letters to Vought and lawmakers, backed up by documents posted on its website, says the project – the first full rehab of its two buildings in Washington since they were built nearly a century ago – ran into unexpected challenges, including toxic materials abatement and higher-than-estimated materials and labour costs.

Ahead of Trump’s visit, Fed staff escorted a small group of reporters around the construction sites. They wove around cement mixers and construction machines, and spoke over the sound of drills, banging and saws. Fed staff pointed out security features, including blast-resistant windows, that they said were a significant driver of costs, in addition to tariffs and escalations in material and labour costs.

The renovation project started in mid-2022 and is on track to be completed by 2027, with the move-in planned for March 2028. A visit to the roof of the Eccles Building – a point of particular scrutiny by White House critics that the renovations were ostentatious – revealed an impressive view of the Lincoln Memorial and the National Mall, the pool report said.

Staff explained that rooftop seating, although inexpensive, had been removed because of the appearance of it being an amenity and was one of only two deviations from the original plan. The other was the scrapping of a couple of planned fountains.

Senate Banking Committee Chair Tim Scott, a Republican who sent Powell a letter on Wednesday asking a series of questions about the cost and other details of the renovation, as well as Powell’s own statements about it, is part of the visit as well.

Market reaction to Trump’s visit was subdued. The yield on benchmark 10-year Treasury bonds ticked higher after data showed new jobless claims dropped in the most recent week, signalling a stable labour market not in need of support from a Fed rate cut. Stocks on Wall Street were mixed.

Trump’s criticism of Powell and flirtation with firing him have previously upset financial markets and threatened a key underpinning of the global financial system: that central banks are independent and free from political meddling.

His visit contrasts with a handful of other documented presidential visits to the Fed. Then-President Franklin Delano Roosevelt visited the central bank in 1937 to dedicate the newly-built headquarters, which is one of the two Fed buildings now being renovated. Most recently, former President George W Bush went to the Fed in 2006 to attend the swearing-in of Ben Bernanke as Fed chief.

Central bank independence critical

“I think it’s important that he send a signal that he really isn’t happy with how things are going at the Fed,” said Senator Cynthia Lummis, a Republican member of the Senate Banking Committee. She said the visit was a “good decision” by Trump.

Senator Mike Rounds, another Republican who sits on the Senate Banking Committee, said on Thursday he also saw no problem with Trump’s visit, though he added that Powell’s independence as Fed chief is “critical for the markets. I think he’s done a good job of that”.

“I think the more information the president can glean from this, probably the better off we are in terms of resolving any issues that are outstanding,” Rounds said, noting that Powell had indicated “that they have had a significant amount of money, just in terms of foundation work and so forth, that was not anticipated to begin with”.

Former Fed chiefs Janet Yellen and Bernanke this week wrote an opinion piece in The New York Times warning that the public’s belief that the US central bank is willing to make hard decisions based on data and independent of politics “is an important national asset. It is hard to acquire and easy to lose”.

Economic experts widely agree.

“As we’ve seen through the disinflation process that has been taking place over the last few years, the credibility of central banks around the world has been instrumental in anchoring inflation expectations and in bringing down inflation across many countries in the world,” International Monetary Fund spokesperson Julie Kozack said on Thursday.

“And it is also important that independence, of course, must coexist with clear accountability to the public.

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Contributor: Trump’s Fed battle is not like his other political tussles

President Trump is once again floating the idea of firing Federal Reserve Chair Jerome Powell, ostensibly in objection to excessively high interest rates. But this debate is not about monetary policy. It’s a power play aimed at subordinating America’s central bank to the fiscal needs of the executive branch and Congress. In other words, we have a textbook case of “fiscal dominance” on our hands — and that always ends poorly.

I’m no cheerleader for Powell. During the COVID-19 pandemic, he enthusiastically backed every stimulus package, regardless of size or purpose, as if these involved no trade-offs. Where were the calls for “Fed independence” then? And where were the calls for fiscal restraint after the emergency was over?

Powell failed to anticipate the worst inflation in four decades and repeated for far too long the absurd claim that it was “transitory” even as mounting evidence showed otherwise. He blamed supply-side disruptions long after ports had reopened and goods were moving.

And as inflation was taking a stubborn hold, Powell delayed raising interest rates — possibly to shield the Biden administration from the fiscal fallout of the debt it was piling on — well past the point when monetary tightening was needed.

If this weren’t the world of government, where failure can be rewarded — and if there had been a more obvious alternative — Powell wouldn’t have been invited back for another term. But he was. And so Trump’s pressure campaign to prematurely end Powell’s tenure is dangerous.

I get why with budget deficits exploding and debt-service costs surging, the president wants lower interest rates. That would make the cost of his own fiscal agenda appear more tolerable. Trump likely believes he’s justified because he believes that his tax cuts and deregulation are about to spur huge economic growth.

To be sure, some growth will result, though the effects of deregulation will take a while to arrive. But gains could be swamped by the negative consequences of Trump’s tariffs and erratic tariff threats. No matter what, the new growth won’t lead to enough new tax revenue to escape the need for the government to borrow more. And the more the government borrows, the more intense the pressure on interest rates.

One thing is for sure: The pressure Trump and his people are exerting on the Fed is a push for fiscal dominance. The executive branch wants to use the central bank as a tool to accommodate the government’s frenzy of reckless borrowing. Such political control of a central bank is a hallmark of failed monetary systems in weak institutional settings. History shows where that always leads: to inflation, economic stagnation and financial instability.

So far, Powell is resisting cutting rates, hence the barrage of insults and threat of firing. But now is not the right time to play with fire. Bond yields surged last year as investors reckoned with the scale of U.S. borrowing. They crossed the 5% threshold again recently. Moody’s even stripped the government of its prized AAA credit rating. Lower interest rates from the Fed — especially if seen as the result of raw political pressure — could further diminish the allure of U.S. Treasuries.

While the Fed can temporally influence interest rates, especially in the short run, it cannot override long-term fears of inflation, economic sluggishness and political manipulation of monetary policy driven by unsustainable fiscal policy. That’s where confidence matters, and confidence is eroding.

This is why markets are demanding a premium for funds loaned to a government that is now $36 trillion in debt and shows no intention of slowing down. But it could get worse. If the average interest rate on U.S. debt climbs from 3.3% to 5%, interest payments alone could soar from $900 billion to $2 trillion annually. That would make debt service by far the single largest item in the federal budget — more than Medicare, Social Security, the military or any other program readers care about. And because much of this debt rolls over quickly, higher rates hit fast.

At the end of the day, the bigger problem isn’t Powell’s monetary policy. It’s the federal government’s spending addiction. Trump’s call to replace Powell with someone who will cut rates ignores the real math. Lower short-term interest rates will do only so much if looser monetary policy is perceived as a means of masking reckless budget deficits. That would make higher inflation a certainty, not merely a possibility. It might not arrive before the next election, but it will inevitably arrive.

There is still time to avoid this cliff. Trump is right to worry about surging debt costs, but he’s targeting a symptom. The solution isn’t to fire Powell — it’s to cure the underlying disease, which is excessive government spending.

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University. This article was produced in collaboration with Creators Syndicate.

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The Mt. Baden Powell trail near Wrightwood and others have reopened

On Friday, I visited an old friend I hadn’t seen in months: the Mt. Baden Powell trail near Wrightwood. I was nervous about what I’d find, given the trail’s proximity to a recent wildfire.

The Bridge fire started near the Bridge to Nowhere trailhead in Angeles National Forest in early September. It charged northward, burning 56,030 acres and destroying 81 structures, including homes in Wrightwood and Mt. Baldy. It also incinerated campgrounds and scorched dozens of miles of trails.

Given the region’s fire-related closures, I hadn’t been back in 9½ months. I drove toward Wrightwood wondering how devastated the landscape would be. Would the trail be well maintained? Would this place where I’ve spent so many hours bounding up the mountainside still be as beautiful as I remembered?

The San Gabriel Mountains as seen from the Mt. Baden Powell trail.

The San Gabriel Mountains as seen from the Mt. Baden Powell trail.

(Jaclyn Cosgrove / Los Angeles Times)

After my eight-mile trek to the summit of Mt. Baden Powell and back, I am relieved to report that it was an awesome day on the mountain — with some caveats.

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The Mt. Baden Powell hike is one of several trails that reopened in late June after Angeles National Forest officials, for reasons that remain unclear, terminated the Bridge fire order.

Just over two weeks after the closure order was canceled, the California Department of Transportation announced that the section of State Route 2 (Angeles Crest Highway) from Big Pines Highway to the gate near Vincent Gulch in Angeles National Forest had reopened to the public.

From the Mt. Baden Powell trail, hikers can see a portion of the Bridge fire burn scar.

From the Mt. Baden Powell trail, hikers can see a portion of the Bridge fire burn scar.

(Jaclyn Cosgrove / Los Angeles Times)

This meant hikers could actually park near the trailhead rather than parking five miles away and hoofing it down the highway to reach the Baden Powell starting point. (Note: The section of Angeles Crest Highway between Vincent Gulch and Islip Saddle remains closed but could reopen this fall.)

As I drove west out of Wrightwood on Angeles Crest Highway, it was impossible to miss the burned landscape. I stopped at the Inspiration Point vista lookout and the destroyed Grassy Hollow Visitor Center, where blackened trees jut out of the ground like dark skeletal remains.

But pulling into the Vincent Gap parking lot, I was relieved to see green conifers thriving on the mountainsides. I chatted in the parking lot with another hiker who said she’s been coming to Wrightwood since the early 1970s when her grandparents had a home there. She was eager to return after the closure order was lifted but, like me, was nervous to see the fire’s effects.

It was hard to see so many burned and dead trees killed by fire and by drought, she said. She was surprised by how the area around Vincent Gap still looked healthy.

Several burned trees remain in the Bridge fire burn scar near Bear and Vincent gulches around Wrightwood.

Several burned trees remain in the Bridge fire burn scar near Bear and Vincent gulches around Wrightwood.

(Jaclyn Cosgrove / Los Angeles Times)

As I started the trail, infamous for its 40(ish) switchbacks, I spotted California sister butterflies as well as chipmunks performing parkour exercises across the trail, trying to remain unseen and looking extremely cute in the process. I listened to the tweets of dark-eyed juncos and the teensy blue-gray gnatcatcher.

About two-thirds of a mile in, I started to take in the views, looking northeast where the fire’s burn scar is easy to track by simply observing the large swaths of brown and dead trees. A begrudgingly optimistic person, I smiled when I saw green cedars and pines still alive among their dying brethren.

I was relieved to see the small wooden bench, just under a mile in, still perched on the mountainside. I yelled at a particular boulder just before Lamel Spring: “I remember you!” Although so much had changed around the trail, so much remained the same.

Chipmunks are easy to spot on the Mt. Baden Powell hike through the San Gabriel Mountains.

Chipmunks are easy to spot on the Mt. Baden Powell hike through the San Gabriel Mountains.

(Jaclyn Cosgrove / Los Angeles Times)

At Lamel Spring, I refilled my water bottle and felt grateful at the burst of colors around me — bright orange lichen and wildflowers including small pink roses, scarlet monkey flowers and the rare lemon lily. A mountain chickadee buzzed past my head before landing on a branch nearby, where it kept watching me as I savored the cool spring water. It’s easy to forget that some of these animals are as curious, if not more, of us than we are of them. They people watch too.

I continued my hike and smiled when I saw the large old log on the trail that someone long ago carved “half way” into. It is, indeed, the halfway point.

The higher I climbed, the cooler and quieter it got, outside of the ravens squawking to each other from across the mountain. After some light grumbling, as I was ready for lunch, I arrived at the Wally Waldron Tree, a limber pine that might be the oldest living thing in the San Gabriel Mountains. Believed to be 1,500 years old, this tree is thankfully yet another thing that remains unchanged on this trail.

The Wally Waldron Tree perched on a ledge parallel to the Mt. Baden Powell trail.

The Wally Waldron Tree remains alive and well, perched on a ledge parallel to the Mt. Baden Powell trail. The tree might be the oldest living thing in the San Gabriel Mountains.

(Jaclyn Cosgrove / Los Angeles Times)

I was the only human on the summit, and I took the opportunity to, for the first time, lie down and enjoy my surroundings. (I did set a timer because I have this nightmare of accidentally falling asleep on the trail!)

Mt. Baden Powell is one of my favorite hikes, in part, because it’s a suffer fest. I have almost given up several times on this hike because it is a challenging slog up the mountain. Outside the trickling spring, there isn’t any water, and it can get hot as you charge up its more exposed switchbacks. But I keep coming back because every single time I reach the top, I am awestruck by the panoramic views of the San Gabriel Mountains, the Antelope Valley and more. It is important to be reminded of the specks of stardust we are sometimes.

Several burned trees near Inspiration Point near Wrightwood.

Several burned trees near Inspiration Point near Wrightwood.

(Jaclyn Cosgrove / Los Angeles Times)

This was the first time I’ve hiked Mt. Baden Powell and not seen a single cut-through on the trail, a bad habit of hikers who ignore the switchbacks and charge straight down. The trail was easy to follow and in pristine condition. A forest service worker told me that several volunteers are to thank for that. (Thank you!)

After the hike, I headed west down Big Pines Highway to see how the rest of the region fared in the Bridge fire. The first three-quarters of a mile of the highway are in the burn scar, but as I drove farther west, it became harder to discern where the burn scar was. There was so much green and life around me.

The hike to Mt. Baden Powell was thankfully spared in the Bridge fire and has hundreds of lush green shade trees.

The hike to Mt. Baden Powell was thankfully spared in the Bridge fire and has hundreds of lush green shade trees.

(Jaclyn Cosgrove / Los Angeles Times)

Multiple campgrounds were damaged or destroyed in the fire and remain closed, including Blue Ridge, Guffy and Lupine. But several are open and offer beautiful escapes in the outdoors.

Those sites, which are managed by Mountain High, include:

  • Appletree: Eight first come, first served walk-in campsites, including three that are ADA accessible; piped water available; vault toilets.
  • Peavine: Eight first come, first served walk-in tent sites; no potable water; vault toilets.
  • Lake: Eight sites, including six requiring reservations, next to Jackson Lake; drinking water available; vault toilets.
  • Mountain Oak: Seventeen sites near Jackson Lake featuring flush toilets and water faucets.
  • Table Mountain: A large campground featuring more than 100 of both first come, first served and reservation-only sites; drinking water available; vault toilets.

The last place on my list was Jackson Lake, where you can rent kayaks and paddle boats from Mountain High every Thursday through Monday.

Jackson Lake near Wrightwood entertains families enjoy fishing and picnicking and staying at the nearby campground.

Jackson Lake is a popular place near Wrightwood where families enjoy fishing, picnicking and staying at the nearby campground.

(Jaclyn Cosgrove / Los Angeles Times)

Families were picnicking and fishing, including some teenagers standing in the water in waders.

One child, hearing the croak of a local amphibian, shouted to his grandfather about how he was going to catch a frog and have frog legs for dinner that night. Nearby, another youngster had just caught a rainbow trout. She held the fish in her hands, showing an older kid her score.

May they, too, get to visit this area for many years to come.

A wiggly line break

3 things to do

several small light brown mushrooms huddled in green grass

A cluster of mushrooms in Canyon View Park in Aliso Viejo.

(Jason Armond / Los Angeles Times)

1. Forage for information in Los Feliz 🍄
In collaboration with Friends of Griffith Park, Foraging & Mushroom Hunting Women of SoCal will host a beginner-friendly talk at 6:30 p.m. tonight at the Los Feliz Branch Library (1874 Hillhurst Ave.) on how to find mushrooms in the summer. Bat Vardeh, the foraging group’s founder, will explain how fungi is always growing in the region. Learn more at the group’s Instagram page.

2. Have a fin-tastic time in Long Beach
Cal State Long Beach’s Shark Lab will host its free family-friendly Sharks @ the Beach event from 10 a.m. to 3 p.m. Saturday at the CSU Long Beach Hall of Science. Guests can take lab tours, talk with scientists and observe live marine animals. No registration is required. Learn more at the lab’s Instagram page.

3. Help trees recover from wildfire near Malibu
The Resource Conservation District of the Santa Monica Mountains needs volunteers from 9 a.m. to noon Saturday to tend to more than 400 oak trees at Trippet Ranch in Topanga State Park. This is the first tree care event in the park since the Palisades fire. Participants will water trees, yank weeds and apply mulch as well as possibly plant new acorns to replace trees that did not thrive. Volunteers will also collect data for a reforestation project, which started in 2018. Participants should bring sun protection and water and wear clothes they don’t mind getting dirty and durable shoes. Register at eventbrite.com.

A wiggly line break

The must-read

Deepwater bubblegum coral observed during a 2020 exploration of the Santa Lucia Bank off the central coast of California.

Deepwater bubblegum coral, a host for California king crab, observed during a 2020 exploration of the Santa Lucia Bank off the central coast of California.

(Associated Press)

Despite continued challenges from the federal government, California is moving close to its goal of conserving 30% of lands and coastal waters by 2030. Times staff writer Lila Seidman reports that almost five years after the state launched its 30×30 initiative, California has conserved 26.1% of its lands and 21.9% of its coastal waters — or roughly 41,000 square miles and 1,150 square miles respectively. It’s great news — though it comes with an asterisk. “Federal attacks on public lands and environmental protections … could impact our progress,” California’s Natural Resources Secretary Wade Crowfoot said, “and we could actually see — if these federal attacks are successful — our acreage moving backwards.”

The Times will keep following these stories in The Wild and in stories from our climate team.

Happy adventuring,

Jaclyn Cosgrove's signature

P.S.

The REI store in Burbank will host its first community day from 11 a.m. to 3 p.m. Sunday. Guests can snag free milkweed for monarchs from Arroyo Foothills Conservancy, which will teach visitors how to raise the milkweed to support pollinators. Shift Our Ways Collective will hand out pumpkin starters and teach folks how to take care of the seasonal plant. Also, other local groups, including Friends of Griffith Park, CicLAvia, We Explore Earth and Northeast Trees will host additional programming, including screening short films.

For more insider tips on Southern California’s beaches, trails and parks, check out past editions of The Wild. And to view this newsletter in your browser, click here.



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Trump: Fed Chairman Powell will be replaced within a year

July 16 (UPI) — President Donald Trump said he won’t fire Federal Reserve Chairman Jerome Powell but will replace him within the next year when his four-year term ends.

A reporter asked Trump about rumors of his pending firing of Powell while the president fielded media questions prior to a luncheon and meeting with the Bahrain Prime Minister and Crown Prince Salman bin Hamad Al Khalifa at the White House on Wednesday.

“He’s always been too late, hence, his nickname ‘Too Late,'” Trump said of Powell.

“He should have cut interest rates a long time ago,” Trump continued. “Europe has cut them 10 times in the short time that we have cut none.

“The only time he cut them was just before the election to try and help Kamala [Harris], but, obviously, that didn’t work,” Trump said.

“He does a terrible job,” Trump continued. “He’s costing us a lot of money, and we fight through it.”

He said the nation’s economy is strong enough that the Federal Reserve’s lending rate of between 4.25% and 4.5% doesn’t affect the nation.

Instead, Trump said, it hurts those who want to buy a house by saddling them with a higher mortgage rate.

“He’s a terrible Fed chair, Trump said. “I’m surprised that [President Joe] Biden extended him, but they did.”

“We’re not planning on doing anything,” Trump said, but “we’re very concerned.”

Instead of firing Powell, Trump said his administration can “make a change in the next eight months or so.”

Powell initially became the Federal Reserve chairman in 2018 after Trump nominated him for the position during the president’s first term.

Biden nominated Powell for another four-year term, for which he was sworn in on May 23, 2022, and ends on May 15, according to the Federal Reserve.

Trump has denied he is planning to fire Powell, unless evidence of fraud arises, CNBC reported on Wednesday.

But on Tuesday, he asked some House Republicans if he should fire Powell and was told he should, CNBC and The Hill reported.

An unnamed participant said Trump told the group he would fire Powell, media reported.

Trump later denied he would fire Powell and said he has not drafted a letter to remove Powell from his chairmanship.

Trump on Wednesday acknowledged he asked the group of House Republicans “about the concept of firing” Powell, CBS News reported.

He said it only would happen if there were some cause, such as possible fraud involved in a $2.5 billion improvement project for the Federal Reserve headquarters in Washington, D.C.

“He’s already under investigation,” Trump said of Powell. “He spent far more money than he was supposed to rebuilding.”

Office of Management and Budget Director Russ Vought last week accused Powell of undertaking a renovation project that has lasted for years that might run counter to federal law, CBS News reported.

Powell in June told a Senate panel some of the criticisms of the renovation of the Federal Reserve’s Washington, D.C., headquarters are “misleading and inaccurate.”

Trump has criticized Powell for the Federal Reserve not lowering interest rates.

Powell has cited Trump’s often-changing tariff policies as the reason for not lowering the Federal Reserve’s lending rate.

Powell also has said he won’t let politics influence the decisions of the independent Federal Reserve Board of Governors.

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Clippers trade Norman Powell to Miami Heat as part of three-team deal

The Clippers have traded guard Norman Powell to the Miami Heat and have acquired forward John Collins from the Utah Jazz in a three-team, multi-player deal that also includes a draft pick, according to people with knowledge of the stituation not authorized to speak on the matter.

The Clippers will send a 2027 second-round pick to the Jazz and the Heat will send Kyle Anderson and Kevin Love to the Jazz as part of the deal.

In Collins, the Clippers get some much-needed size for the frontcourt and youth.

Though Collins played just 40 games last season for the Jazz, including 31 starts, he averaged 19.0 points and 8.2 rebounds.

A 6-9, 226-pound power forward, Collins improved his outside shooting, making a career-best 39.9 percent of his three-pointers last season despite dealing with back and ankle injuries.

Over the course of his eight-year career, Collins has averaged 16.0 points, 8.1 rebounds and shot 54.6 percent from the field, 36.3 percent from three-point range and 79.2 percent from the free-throw line, including a career-best 84.8 percent last season.

Collins opted into his player option that pays him $26.5 million next season, his last year of that deal.

Powell was one of the Clippers top performers last season, averaging a career-high 21.8 points per game, second-best on the team. He was in the final year of a contract that was to pay him $20.4 million next season and was seeking an extension.

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Trump says Powell should resign ‘immediately’ in latest attack on Fed chair | Business and Economy News

The US president has repeatedly called on the top central banker to step down amid disagreement over interest rates.

United States President Donald Trump has repeated his call for Federal Reserve Chair Jerome Powell to step down, the latest in a series of attacks that have raised concern about the independence of the US central bank.

Trump made the call for Powell to “resign immediately” on Wednesday after his administration’s top housing regulator urged the US Congress to launch an investigation into the central banker.

Bill Pulte, the director of the Federal Housing Finance Agency, said in a post on X that Powell should be investigated for his “political bias” and “deceptive testimony” about renovations at the Federal Reserve headquarters in Washington, DC.

In a Truth Social post responding to Pulte’s comments, Trump said “Too Late” – a nickname used to lambast Powell for not lowering rates faster – should resign.

Trump’s latest broadside comes days after he sent Powell a letter demanding that the central banker lower the benchmark interest rate, which is currently set at a range of 4.25 percent to 4.5 percent, by “a lot”.

The US president has repeatedly criticised Powell for not backing faster rate cuts, arguing that the central banker’s cautious stance is holding back economic growth and that concerns about inflation are overblown.

Lower interest rates reduce the cost of borrowing for businesses and consumers, helping boost economic growth.

But rate cuts also have the effect of increasing inflation, which central banks typically wish to keep low, and Trump’s sweeping tariffs are generally expected to put upward pressure on prices.

On Tuesday, Powell told a panel discussion at the European Central Bank Forum in Portugal that the central bank had taken a wait-and-see approach to rate cuts in order to gauge the impact of Trump’s tariffs, many of which are in limbo ahead of a July 9 deadline.

“In effect, we went on hold when we saw the size of the tariffs, and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs,” Powell said.

“We didn’t overreact. In fact, we didn’t react at all; we’re simply taking some time.”

Trump has repeatedly demanded that Powell, whose term does not expire until May 2026, step down or be removed since coming into office in January.

Last week, Trump told reporters that he would “love” for Powell to step down “if he wanted to”.

In April, Trump said that Powell’s “termination cannot come fast enough,” before backing off his threat after stocks and the US dollar dipped sharply.

Under US federal law, the US president is only permitted to fire the Fed chair “for cause”, a provision widely interpreted to mean specific misconduct, not policy decisions.

In May, the US Supreme Court reaffirmed precedent limiting the president’s ability to remove the top central banker in a ruling that singled out the Federal Reserve as having a distinct status compared with other independent agencies.

Trump earlier on Tuesday told reporters that he had “two or three” choices in mind to succeed Powell without elaborating on who is under consideration.

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