Reserve

Nov. 1 (UPI) — Berkshire Hathaway has a record-high cash reserve of $381.7 billion after increasing its third-quarter earnings by 34% from a year ago, the firm said in its quarterly report on Saturday.

Berkshire Hathaway generated $13.485 billion in revenue during the third quarter, which is a 34% increase from $10.1 billion a year earlier.

“Investment income continues to benefit from rising cash balances and relatively high, though declining, yields on cash and short-term securities,” Edward Jones analyst James Shanahan wrote after the earnings report was released, as reported by MarketWatch.

Income from insurance underwriting topped $2.37 billion during the quarter, which was a 200% increase, partly due to relatively little by way of natural disasters and other common drivers of catastrophic losses.

The Omaha, Neb.-based conglomerate’s primary insurance and reinsurance companies produced pre-tax quarterly profits after reporting losses a year ago.

Although its insurance sectors posted profits, property and casualty insurer GEICO’s underwriting profits dropped by 13% due to an increase in claim amounts, according to Bloomberg.

Berkshire Hathaway’s Class A and Class B shares each rose 5%in value so far in 2025, and the firm did not undertake share buybacks through the first nine months of the year, CNBC reported.

It’s also the fifth consecutive quarter in which Berkshire Hathaway did not buy back any shares, which boosted its cash reserves to its current record of $381.6 billion.

That amount exceeds the prior record of $347.7 billion, which was set during the year’s first quarter.

Berkshire Hathaway also continued its recent trend of selling more equities than it buys, with a $10.4 billion gain from equities sales.

The United States Federal Reserve has cut its benchmark interest rate by 25 basis points to 3.75 – 4.00 percent, amid signs of a slowing labour market and continued pressure on consumer prices.

The cut, announced on Wednesday, marks the US central bank’s second rate cut this year.

“Job gains have slowed this year, and the unemployment rate has edged up but remained low through August; more recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated,” the Fed said in a statement.

“Uncertainty about the economic outlook remains elevated.”

The cuts were largely in line with expectations. Earlier on Wednesday, CME Fed Watch — which tracks the likelihood of rate cuts — said there was a 97.8 percent probability of rate cuts.

After the September cut, economists had largely been expecting two additional rate cuts for the rest of this year. Goldman Sachs, Citigroup, HSBC, and Morgan Stanley, among others, forecast one more 25-basis-point reduction by year’s end following Wednesday’s cut. Bank of America Global Research is the only major firm that is not anticipating another 25-basis-point cut in 2025.

“The Fed has a challenging line to walk; lower interest rates to support labour markets and growth, or raise them to tamp down inflation. For now, they are taking a cautious approach tilted a bit towards the growth concerns,” Michael Klein, professor of international economic affairs at The Fletcher School at Tufts University in Massachusetts, told Al Jazeera.

Despite forecasts, Federal reserve chairman Jerome Powell isn’t necessarily inevitable.

“We haven’t made a decision about December,” Powell told reporters in a press conference.

“We remain well-positioned to respond in a timely way to potential economic developments.”

Government shutdown implications

The cuts come as economic data becomes increasingly scarce amid the ongoing government shutdown, now in its 29th day as of Wednesday, making it the second-longest in US history, behind the 35-day shutdown during the first presidency of Donald Trump in late 2018 and early 2019.

Because of the shutdown, the Department of Labor did not release the September jobs report, which was scheduled for October 3. The only major government economic data released this month was the Consumer Price Index (CPI), which tracks the cost of goods and services and is a key measure of inflation. The CPI rose 0.3 percent in September on a month-over-month basis to an inflation rate of 3 percent.

That data was released because the Social Security Administration required it to calculate cost-of-living adjustments for 2026. As a result, Social Security beneficiaries will receive a 2.8 percent increase in payments compared to 2025.

The shutdown, however, could have a bigger impact on next month’s central bank decision as the Labor Department is currently unable to compile the data needed for its November reports.

However, amid the limited government data, private trackers are showing a slowdown.

“We are not going to be able to have the detailed feel of things, but I think if there were a significant or material change in the economy one way or another, I think we would pick that up,” Powell said.

Consumer confidence lags

Consumer confidence fell to a six-month low, according to The Conference Board’s report that was released on Tuesday.

The data showed that lower-income earners – those making less than $75,000 a year – are less confident about the economy as fears of job scarcity loom. This comes only days after several large corporations announced waves of layoffs.

On Wednesday, Paramount cut 2,000 people from its workforce. On Tuesday, Amazon cut 14,000 corporate jobs. Last week, big box retailer Target cut 1,800 jobs. This, as furloughs and layoffs weigh on government workers. The US government is the nation’s largest employer.

Those making more than $200,000 annually remain fairly confident and are leading consumer spending that is keeping the economy afloat, according to The Conference Board.

Pressures both on consumer spending and the labour market are largely driven by tariffs weighing on consumers and businesses.

US markets are ticking up on the rate cut. The Nasdaq is up 0.5, the S&P 500 is up 0.1, and the Dow Jones Industrial Average is up by 0.26 as of 2pm in New York (18:00 GMT).

Eight Hungarian and two German passengers were onboard, and the Kenyan pilot was also killed, Mombasa Air Safari said.

A light plane crash has killed 11 people, mostly foreign tourists, in Kenya’s coastal region of Kwale while flying to Maasai Mara National Reserve.

The airline, Mombasa Air Safari, said in a statement Tuesday that eight Hungarian and two German passengers were on board, and that the Kenyan pilot was also killed.

Sadly, there are no survivors,” Mombasa Air Safari added. There was heavy rain in coastal Kenya in the morning.

The Civil Aviation Authority said the accident happened at Kwale, near the Indian Ocean coast, at about 8:30am (05:30 GMT). A regional police commander, in comments aired by public broadcaster Kenya Broadcasting Corporation, said all the passengers were tourists.

Citizen TV station said the bodies of those on board had been burned beyond recognition. The plane crashed in a hilly and forested area about 40 kilometres (25 miles) from Diani airstrip, authorities said.

The aircraft burst into flames, leaving a charred wreckage at the scene, officials said. Witnesses told The Associated Press news agency. that they heard a loud bang, and upon arriving at the scene, they found human remains.

Investigating agencies were looking into the cause of the crash, Kwale County Commissioner Stephen Orinde told The AP.

The Maasai Mara National Reserve, located west of the coastline and is a two-hour direct flight from Diani, a popular coastal town known for its sandy beaches. The reserve attracts a large number of tourists as it features the annual wildebeest migration from the Serengeti in Tanzania.

According to the most recent safety oversight audit for Kenya posted on the International Civil Aviation Organization site, from 2018, the country fell below the global average in accident investigation.

Oct. 27 (UPI) — The Federal Reserve will meet Wednesday, as the U.S. government shutdown enters its fifth week, to decide whether to cut interest rates for a second time since September.

Last week, the Labor Department released its Consumer Price Index, showing inflation rose at a rate of 3% last month. While inflation remains above the Federal Reserve’s 2% target, many economists expect a rate cut this week.

“Concerns about tariffs driving prices higher are still not showing up in most categories,” Scott Helfstein, Global X’s head of investment strategy, told CBS News on Friday. “Nothing in the inflation print should stop the Fed from cutting rates next week. Yes, prices are higher, but not enough to keep them from helping the economy.”

While some economic data has not been released amid the government shutdown, forcing the Federal Reserve to make its decision without some key information, a quarter-point cut to benchmark federal funds this week would lower the target to somewhere between 3.75% and 4%.

“This time around, there are warning signs all around the economy, from rising unemployment to seven straight months of contraction in manufacturing due to tariffs,” Ryan Young, senior economist at the Competitive Enterprise Institute, told Fox Business. “That is what is pushing Fed officials towards cutting rates. But that stimulus comes with a tradeoff: it risks higher inflation. They’re taking a chance, and it might not pay off.”

Last month, Federal Reserve chairman Jerome Powell announced a 0.25% rate cut, the first of President Donald Trump‘s second term and the first since the United States imposed wide-ranging tariffs. The Federal Reserve works to control inflation, while maximizing job growth.

U.S. markets, which closed higher Monday, are also expecting another rate cut this week, along with a third in December.

The Dow Jones Industrial Average and the S&P 500 are currently sitting at record highs. On Friday, the Dow closed for the first time above 47,000, buoyed by the expectation of another rate cut this week, as well as big tech earnings reports and a possible China trade deal.

Chargers running back Omarion Hampton will be placed on injured reserve, coach Jim Harbaugh said Monday, meaning the rookie first-round pick will be out for at least the next four games.

Late in the third quarter of Sunday’s 27-10 loss to Washington, Hampton came up limping after colliding with a Commanders pass rusher. After the game, the running back rode by the Chargers’ locker room on the back of a golf cart, wearing a protective boot on his left foot. Harbaugh declined to elaborate on the situation in his postgame comments.

However, Harbaugh revealed Monday that Hampton will be out for at least a month.

• Share via Close extra sharing options

Sam Farmer breaks down what went wrong for the Chargers in their 27-10 loss to the Washington Commanders at SoFi Stadium on Sunday.

Hampton, a University of North Carolina standout selected 22nd overall last spring, rushed for 44 yards in 12 carries Sunday and had six receptions for 26 yards.

“He’s been getting in a really good rhythm, playing really well,” Harbaugh said. “Special player. That was an unfortunate occurrence.”

The Chargers, who play Sunday at Miami, are looking to halt a two-game losing slide. They had put more on the shoulders of their rookie running back after losing veteran Najee Harris to a torn Achilles tendon in the second quarter of a Week 3 victory over Denver.

The team is already dealing with a slew of injuries along the offensive line and needs a reliable running game to take pressure off of quarterback Justin Herbert, who was hit a combined 21 times in the past two games.

In a Week 4 loss at the New York Giants, Hampton ran for 128 yards in 12 carries, including a 54-yard touchdown run.

Harbaugh said the Chargers will turn to reserve running backs Hassan Haskins, Kimani Vidal and Amar Johnson and “look at other avenues as well.”

The Chargers are coming off a loss in which they got off to a 10-0 lead before surrendering 27 unanswered points. They have been penalized 24 times in the past two games.

“In really all phases, every group’s got fingerprints on it, every position group, every coach,” Harbaugh said. “We’re all looking at that, wall to wall, going back, seeing every way we can attack and be better.”

WASHINGTON — The Supreme Court on Wednesday put off a decision on whether President Trump can fire Federal Reserve Governor Lisa Cook and said it would hear arguments on the case in January.

The court’s action allows Cook to remain in her position, and it prevents Trump from taking majority control of the historically independent central bank board.

Last month, the president said he fired Cook “for cause,” citing mortgage documents she signed in 2021 confirming that two different properties were her primary residence.

But the flap over her mortgages arose as Trump complained that the Federal Reserve Board, including Cook, had not lowered interest rates to his satisfaction.

“We will have a majority very shortly,” Trump said after he fired Cook.

In September, Trump appointed Stephen Miran, the chair of of his White House Council of Economic Advisers, to serve a temporary term on the seven-member Federal Reserve Board. He joined two other Trump appointees.

Congress wrote the Federal Reserve Act of 1913 intending to give the central bank board some independence from politics and the current president.

Its seven members are appointed by the president and confirmed by the Senate, and they serve staggered terms of 14 years, unless “removed for cause by the president.”

The law does not define what amounts to cause.

President Biden appointed Cook to a temporary term in 2022 and to a full term a year later.

In August, Bill Pulte, Trump’s director of the Federal Housing Finance Agency, alleged that Cook committed mortgage fraud when she took out two housing loans in 2021. One was for $203,000 for a house in Ann Arbor, Mich., and the second was for $540,000 for a condo in Atlanta. In both instances, he said she signed a loan document saying the property would be her primary residence.

Mortgage lenders usually offer a lower interest rate for a borrower’s primary residence.

Cook has not directly refuted the allegation about her mortgage documents, but her attorneys said she told the lender she was seeking the Atlanta condo as a vacation home.

Trump, however, sent Cook a letter on Aug. 25 that said, “You may be removed, at my discretion, for cause,” citing the law and Pulte’s referral. “I have determined that there is sufficient cause to remove you from your position,” he wrote.

Cook refused to step down and filed a suit to challenge the decision. She argued the allegation did not amount to cause under the law, and she had not been given a hearing to contest it.

A federal judge in Washington agreed and blocked her firing, noting that unproven allegation of mortgage fraud occurred before she was appointed to the Federal Reserve.

In a 2-1 vote, the appeals court also refused to uphold her firing.

Trump’s lawyers sent an emergency appeal to the Supreme Court on Sept. 18 arguing Congress gave the president the authority to fire a Fed governor he concludes she is not trustworthy.

“Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations,” wrote Trump Solicitor Gen. D. John Sauer.

But the justices refused to act on an emergency appeal and decided they will give the case a full hearing and a written decision.

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.

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.

WASHINGTON — President Trump appealed to the Supreme Court on Thursday seeking to fire Federal Reserve governor Lisa Cook from the independent board that can raise or lower interest rates.

The appeal “involves yet another case of improper judicial interference with the President’s removal authority — here, interference with the President’s authority to remove members of the Federal Reserve Board of Governors for cause,” wrote Solicitor Gen. D. John Sauer.

The appeal is the second this month asking the court to give Trump broad new power over the economy.

The first, to be heard in November, will decide if the president to free to impose large import taxes on products coming into this country.

The new case could determine if he is free to remake the Federal Reserve Board by removing a Democratic appointee who he says may have broken the law.

Trump’s lawyers argue that a Fed governor has no legal right to challenge the president’s decision to fire her.

“Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself—and refuses to explain the apparent misrepresentations,” Trump’s lawyer said.

Trump has chafed at the Federal Reserve board for keeping interest rates high to fight inflation, and he threatened to fire board chairman Jay Powell, even though he appointed him to that post in 2018.

But last month, Trump turned his attention to Cook and said he had cause to fire her.

Congress wrote the Federal Reserve Act of 1913 intending to give the central bank board some independence from politics and the current president.

Its seven members are appointed by the president and confirmed by the Senate, and they serve staggered terms of 14 years, unless “removed for cause by the president.”

The law does not define what amounts to cause.

President Biden appointed Cook in 2023 and she was confirmed to a full term.

In August, however, Bill Pulte, Trump’s director of the Federal Housing Finance Agency, alleged Cook committed mortgage fraud when she took out two housing loans in 2021. One was for $203,000 for a house in Ann Arbor, Mich., and the second was for $540,000 for a condo in Atlanta. In both instances, she signed a loan document saying the property would be her primary residence.

Typically, borrowers obtain a better interest rate for a primary residence. But lawyers say charges of mortgage fraud are extremely rare if the borrower makes the required regular payments on the loan.

About 30 minutes after Pulte posted his allegations, Trump posted on his social media site: “Cook must resign. Now!!!”

Cook has not responded directly to the allegations, but her attorneys pointed to news reports which said she told the lender her Atlanta condo would be a vacation home.

Trump, however, sent Cook a letter on Aug. 25. “You may be removed, at my discretion, for cause,” citing the law and Pulte’s referrral. “I have determined that there is sufficient cause to remove you from your position,” he wrote.

Cook filed a suit to challenge the decision. She argued the allegations did not amount to cause under the law, and she had not been given a hearing to contest the charges.

U.S. District Judge Jia Cobb, a Biden appointee, agreed she made a “strong showing” the firing was illegal and blocked her removal.

She said Congress wrote the “for cause” provision to punish “malfeasance in office,” not conduct that pre-dated her appointment. She also said Cook had been denied “due process of law” because she was not given a hearing.

The U.S. appeals court in Washington, by a 2-1 vote, refused to lift her order on Monday.

Judges Bradley Garcia and J. Michelle Childs, both Biden appointees, said Cook had been denied “even minimal process — that is, notice of the allegation against her and a meaningful opportunity to respond — before she was purportedly removed.”

Judge Gregory Katsas, a Trump appointee, dissented. He said “for cause” removal provision was broader than misconduct in office. It means the president may remove an officer for “some cause relating to” their “ability, fitness, or competence” to hold the office, he said.

And because a government position is not the property of office holders, they do not have a “due process” right to contest their firing, he said.

BREAKINGBREAKING,

The central bank’s cut comes amid a cooling labour market, which has stalled economic growth.

The United States Federal Reserve will cut interest rates by a quarter of a percentage point, so they will now be between 4.00 percent and 4.25 percent, as a slowing labour market stalls economic growth.

The Fed, the US central bank, announced its decision on Wednesday afternoon.

Economists had widely expected a 25 basis point cut, with CME FedWatch — a group that tracks probability of monetary policy decisions — putting the odds at 96 percent. One basis point is one-hundredth of one percentage point.

Before Wednesday, the Fed had last cut rates in December by 25 basis points, the third cut last year, taking its benchmark rate to between 4.25 percent and 4.50 percent, where it had held steady since.

Federal Reserve Chairman Jerome Powell has emphasised that uncertainty in the economy has kept the Fed cautious, arguing that maintaining rates gave policymakers flexibility as conditions shifted.

The cut comes as a response to shifting economic conditions, following a slew of weak jobs reports showing a slowdown in growth in the labour market and a slight uptick in inflationary pressures.

“Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated,” the central bank said in a press release.

“Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.”

Investors are also waiting for indications from the central bank on whether it will cut interest rates two or three times for the rest of the year as economic uncertainty weighs on the US labour market and the broader economy while the costs of goods and services increase under tariff-driven pressures.

Political pressure

The latest cut comes at a time of heightened scrutiny and pressure on the Fed, which has long emphasised its independence from political pressure. But for months, US President Donald Trump has publicly attacked the central bank, mocking Powell as “too late Powell” over his cautious approach to cutting rates.

At the same time, the Republican-led White House has sought to oust Fed Governor Lisa Cook, who was appointed by former US President Joe Biden, a Democrat, citing alleged mortgage fraud.

On Monday, a US appeals court blocked Trump from removing her. The administration has said it will challenge the ruling.

“The president lawfully removed Lisa Cook for cause. The administration will appeal this decision and looks forward to ultimate victory on the issue,” White House spokesman Kush Desai said on Tuesday.

That same day, Stephen Miran, chair of Trump’s Council of Economic Advisors, was sworn in to fill a temporary Fed seat left vacant by Adriana Kugler until January, while the White House searches for a permanent replacement.

Miran pledged to act independently, but his close ties to the Trump administration — and his work as a fellow at the conservative Manhattan Institute — have raised doubts. His Senate confirmation fell largely along party lines, 47–48, and Senator Lisa Murkowski of Alaska was the only Republican to oppose him.

On Monday, Senate Minority Leader Chuck Schumer called Miran “nothing more than Donald Trump’s mouthpiece at the Fed”.

Markets respond

As of 2pm in New York (18:00 GMT), US markets are trending upwards. The Nasdaq is about even with the market open, the S&P 500 is up 0.2, and the Dow Jones Industrial Average is up by 1 percent.

Sept. 17 (UPI) — The Federal Reserve on Wednesday is expected to announce fresh rate cuts in the wake of U.S. President Donald Trump‘s demands to do so amid ongoing tariff worries and its impact on the American economy.

The central bank has not lowered interest rates since December and the Federal Open Market Committee is widely expected to lower rates by a quarter percent at its next meeting around 2 p.m EDT. It comes in an ongoing feud with White House that’s infuriated the president as the bank has been targeted by the Trump administration as it seeks to consolidate greater federal control under the executive branch.

On Monday, Trump’s newly appointed member to the Federal Reserve Stephen Miran was confirmed by the GOP-controlled Senate in a 48-47 vote.

It’s been suggested that Miran will dissent from the anticipated Fed decision as the administration seeks a higher rate reduction.

The Fed opted to take a “wait and see” approach on rates as the economy shifted under the aggressive economic and tariff policies implemented by Trump.

Trump for months has been vocally critical of Fed Char Jerome Powell and the independent board in his demands to lower interest rates as the president has recently attempted to illegally remove Fed Governor Lisa Cook from her role.

Powell did not give clear indications of the FOMC’s plan for Wednesday in a speech at the end of August to the annual Economic Policy Symposium in Jackson Hole, Wyoming.

On Monday, Trump said in a social media post in all caps the FOMC “must cut interest rates, now, and bigger than (Powell) had in mind.”

“In terms of the Fed’s dual-mandate goals, the labor market remains near maximum employment, and inflation, though still somewhat elevated, has come down a great deal from its post-pandemic highs,” Powell said in Wyoming.

“At the same time, the balance of risks appears to be shifting,” he said on August 22.

But a Goldman Sachs economist said Tuesday the “key question” for the September FOMC meeting was whether it will “signal that this is likely the first in a series of conservative cuts.”

“We expect the statement to acknowledge the softening in the labor market but do not expect a change to the policy guidance or a nod to an October cut. However, Chair Powell might hint softly in that direction in his press conference,” David Mericle wrote to CNBC in a note.

Meanwhile, a separate economist suggests that “such an emergency-sized move” that Trump envisions “is not justified by the current data.”

“Any decision to cut by 50 basis points at this stage would appear to be driven more by political pressure than economic necessity,” Seema Shah, chief global strategist at Principal Asset Management, told CNN.

China’s plan to build a nature reserve in the Scarborough Shoal brings strong responses from the Philippines and US.

United States Secretary of State Marco Rubio has expressed support for Manila’s opposition to Beijing’s plan to designate the contested Scarborough Shoal as a “nature reserve”, characterising the move as part of a broader Chinese strategy of coercion in the South China Sea.

“The US stands with our Philippine ally in rejecting China’s destabilising plans to establish a ‘national nature reserve’ at Scarborough Reef,” Rubio wrote on the X social media platform on Friday.

“This is yet another coercive attempt to advance China’s interests at the expense of its neighbours and regional stability,” Rubio said.

“… Claiming Scarborough Reef as a nature preserve is another example of Beijing using pressure tactics to push expansive maritime and territorial claims, disregarding the rights of neighbouring countries,” he added in a statement.

On Wednesday, China’s State Council revealed its intention to establish a nature reserve spanning 3,500 hectares (8,650 acres) on the disputed islet, describing the initiative as an “important guarantee for maintaining … diversity, stability and sustainability”.

While Scarborough Shoal lies 240km (150 miles) west of the Philippines’ main island of Luzon and is included in the country’s exclusive economic zone, it has been under Beijing’s control since 2012.

China’s nature reserve plans drew a string of strong responses from the Philippines, where the Department of Foreign Affairs promised on Thursday to lodge a “formal diplomatic protest against this illegitimate and unlawful action”.

According to the Philippine Star news outlet, Philippine National Security Adviser Eduardo Ano said China’s planned “Huangyan Island National Nature Reserve” is “patently illegal”.

Ano cited violations of the United Nations Convention on the Law of the Sea (UNCLOS), the 2016 arbitral ruling in favour of Manila regarding China’s claims in the sea, and the 2002 Declaration on the Conduct of Parties in the South China Sea.

“This move by the People’s Republic of China is less about protecting the environment and more about justifying its control over a maritime feature that is part of the territory of the Philippines and its waters lie within the exclusive economic zone of the Philippines,” Ano was quoted in the newspaper.

“It is a clear pretext towards eventual occupation,” he said.

Leading Filipino business newspaper BusinessWorld included excerpts from analysts who said Beijing is likely testing Manila’s resolve in asserting its claim over the region.

“China will likely want to see what the response will be from the Philippines,” said Julio S. Amador III, chief executive officer at Manila-based geopolitical risk firm Amador Research Services.

“If it sees that there is no effective pushback, then there is a strong possibility that it will try to do the same over other features,” Amador said.

Last month, the Philippines, Australia and Canada held joint naval drills east of Scarborough Shoal to simulate aerial attacks and how to counter such threats.

China, for its part, has insisted it will defend the area.

China asserts sovereignty over nearly the entire South China Sea – a strategic maritime corridor through which more than $3 trillion in trade passes each year – despite competing territorial claims from the Philippines, Brunei, Malaysia, and Vietnam.

WASHINGTON — President Trump’s administration on Wednesday appealed a ruling blocking him from firing Federal Reserve Gov. Lisa Cook as he seeks more control over the traditionally independent board.

The notice of appeal came hours after U.S. District Judge Jia Cobb handed down the ruling. The White House has insisted Trump, a Republican, has the right to fire Cook over over allegations raised by one of his appointees that she committed mortgage fraud related to two properties she bought before she joined the Fed.

The case could soon reach the Supreme Court, where the conservative majority has allowed Trump to fire several board members of other independent agencies but has suggested that power has limitations at the Federal Reserve.

Cook’s lawyers have argued that firing her was unlawful because presidents can only fire Fed governors for cause, which has typically meant poor job performance or misconduct. The judge found the president’s removal power is limited to actions taken during a governor’s time in office.

Cook is accused of saying that both her properties, in Michigan and Georgia, were primary residences, which could have resulted in lower down payments and mortgage rates. Her lawsuit denied the allegations without providing details. Her attorneys said she should have gotten a chance to respond to them before getting fired.

Trump has repeatedly attacked Fed Chair Jerome Powell for not cutting the short-term interest rate the Fed controls more quickly. If Trump can replace Cook, he may be able to gain a 4-3 majority on the Fed’s governing board.

No president has sought to fire a Fed governor before. Economists prefer independent central banks because they can do unpopular things like lifting interest rates to combat inflation more easily than elected officials can.

Cook is set to participate in a Fed meeting next week. The meeting is expected to reduce its key short-term rate by a quarter-point to between 4% and 4.25%.

Whitehurst writes for the Associated Press.

Federal Reserve Governor Lisa Cook has filed a lawsuit arguing that United States President Donald Trump has no power to remove her from office, setting up a legal battle that could reset long-established norms between the president and the central bank.

The lawsuit was filed on Thursday, three days after Trump published a letter saying Cook was removed from her job.

In the lawsuit, Cook argues that Trump violated federal law in attempting to remove her from her position. Under the Federal Reserve Act of 1913, presidents may only remove a Federal Reserve governor “for cause”, a high bar generally understood to mean grave misconduct or dereliction of duty.

As the country’s central banking system, the Federal Reserve is considered independent from political branches of government like the presidency or Congress. In theory, that allows it to set monetary policy without political influence.

But concerns about whether the Fed can maintain its independence from the White House under Trump could have a ripple effect throughout the global economy. The US dollar stumbled against other major currencies after Trump first said he would remove Cook.

“President Trump’s attempt to fire Dr Lisa Cook is continuing to add uncertainty and chaos to the US economy,” Sameera Fazili, the former deputy director of the National Economic Council, told Al Jazeera.

Fazili, who previously served as a staff member at the Federal Reserve Bank of Atlanta, explained that disruptions at the central bank would negatively impact US businesses.

“An economy needs stable and predictable laws to function smoothly. That’s how you earn investor trust and raise capital for your businesses,” she said, adding: “I applaud Dr Cook for standing up and fighting for the rule of law.”

Cook’s lawsuit is likely headed to the Supreme Court, where a conservative majority has at least tentatively allowed Trump to fire officials from other agencies.

But the court recently signalled that the Federal Reserve may qualify for a rare exception.

In its May decision in the case Trump v Wilcox, the Supreme Court argued that Federal Reserve governors are distinct from other federal employees, because the bank “is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States”.

Mortgage allegations

Still, Trump, a Republican president, has argued that he does have cause to remove Cook from her post.

In his August 25 letter, he accused Cook of committing mortgage fraud in 2021, a year before she joined the Federal Reserve’s governing body.

“The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve,” he wrote.

“In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.”

The Federal Reserve Act does not define what removal “for cause” means, nor does it lay out any standard or procedures for removal.

Trump, however, has argued that Cook’s actions amount to “gross negligence”, though she has denied the allegations.

No president has ever removed a Federal Reserve board member, and the legal standard governing removals from the central bank has never been tested in court.

A Federal Reserve spokesperson said on Tuesday, before the lawsuit was filed, that the bank would abide by any court decision.

Cook was appointed to the Federal Reserve in 2022 by former President Joe Biden, a Democrat, and is the first Black woman to serve on the central bank’s governing body.

Questions about Cook’s mortgages were first raised in August by William Pulte, a Trump appointee who is the director of the Federal Housing Finance Agency.

Pulte referred the matter to Attorney General Pamela Bondi for investigation.

Cook took out the mortgages in Michigan and Georgia in 2021 when she was an academic, researching and teaching economics.

An official financial disclosure form for 2024 lists three mortgages held by Cook, with two listed as personal residences. Loans for primary residences can carry lower rates than mortgages on investment properties, which are considered riskier by banks.

Some experts have questioned whether transactions that preceded Cook’s appointment to the Federal Reserve would be adequate cause to remove her. After all, Cook’s mortgages were in the public record when she was vetted and confirmed by the Senate in 2022.

Trump has made several allegations of mortgage fraud against perceived political adversaries, including Senator Adam Schiff of California and New York Attorney General Letitia James, both Democrats.

Like Cook, Schiff and James have denied wrongdoing.

Pushing for influence on the Federal Reserve

For her part, Cook said in a statement earlier this week that “no causes exist under the law, and [Trump] has no authority” to remove her from her job.

Her lawyers have also said that Trump’s “demands lack any proper process, basis or legal authority”.

Since Trump took office for a second term in January, critics have accused him of seeking broad powers beyond the presidency, across all branches of government.

He has sought to remove inspectors general and the heads of independent agencies he felt were unfriendly to his policies, despite federal laws that protect their employment.

Such laws require the president to clearly define the cause for removing federal employees. Those causes include neglect of duty, malfeasance, and inefficiency.

While the Federal Reserve Act does not identify those causes in its terms, they could be used as a guide for courts to determine if Trump can legally fire Cook.

In Thursday’s lawsuit, Cook’s lawyers said nothing she has done would amount to such “cause”.

“Neither the type of ‘offense’ the President cited nor the threadbare evidence against Governor Cook would constitute ‘cause’ for removal even if the President’s allegations were true – which they are not,” they wrote.

“The President would not have ‘cause’ to remove a Federal Reserve Governor even if he possessed smoking gun evidence that she jaywalked in college.”

The lawsuit also argues that the president violated Cook’s right to due process by attempting to terminate her position without notice.

Trump has faced other lawsuits for attempting to remove federal officials, including in the Trump v Wilcox case.

That case concerned Gwynne Wilcox, the first Black woman to sit on the National Labor Relations Board, which hears private-sector labour disputes.

Cook’s departure from the Federal Reserve, however, would allow Trump to name his fourth pick to the bank’s seven-member board.

The president has repeatedly berated Federal Reserve Chair Jerome Powell for not lowering interest rates and for his alleged mishandling of a multibillion-dollar renovation project.

While Trump has previously threatened to remove Powell before his term ends in May, he has since backed away from those remarks.

A full term for a Federal Reserve governor like Cook, meanwhile, is 14 years.

Aug. 26 (UPI) — President Donald Trump on Monday fired Federal Reserve Governor Lisa Cook as he continues to feud with her boss over lowering interest rates.

The legality of Cooks’ firing was unclear, and has prompted Democrats to accuse the Republican president of perpetrating an “illegal authoritarian power grab.”

Trump informed Cook of her dismissal in a letter he made public on his Truth Social platform, informing the first Black woman to sit on the Reserve Board that he has “determined that there is sufficient cause to remove you from your position” over allegations of making false statements on mortgage agreements.

“In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity,” Trump said in the letter.

Trump fired Cook following months of applying political pressure on her boss, Federal Reserve Chair Jerome Powell, to lower interest rates. Amid the insults and demands Trump has made of Powell, the Trump-nominated chair from his first administration has stated economic policy will not be influenced by politics.

On Aug. 15, Federal Housing Finance Agency Director William Pulte, a Powell critic, sent a criminal referral for Cook to Attorney General Pam Bondi, accusing Cook of falsifying documents as well as mortgage, bank and wire fraud for signing mortgage documents. She is accused of signing two separate mortgage documents for two separate properties that claim each is her primary residence. One property is in Michigan and the other is in Atlanta. The two documents were allegedly signed two weeks apart during the summer of 2021.

After Pulte made the criminal referral public, Trump called for Cook to resign, which she did not do.

In his Monday letter, Trump cited the allegations against Cook, saying her signing of both mortgage documents “exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”

Cook was fired under the Federal Reserve Act of 1913, which stipulates that the president may only remove members of the board for cause.

“The illegal attempt to fire Lisa Cook is the latest example of a desperate president searching for a scapegoat to cover for his own failure to lower costs for Americans,” Sen. Elizabeth Warren, D-Mass, ranking member of the Senate Banking Housing and Urban Affairs Committee, said in a statement.

“It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.”

Pulte on Monday night thanked Trump for his “commitment to stopping mortgage fraud” by firing Cook.

“Fraud will not be tolerated in President Trump’s housing market,” he said on X.

Trump campaigned on using the office of the presidency to retaliate against his political rivals. Since returning to the White House in January, he has used his executive powers to strip security clearances from perceived political rivals, including lawyers who prosecuted his criminal cases, as well as law firms and former security officials.

Along with Cook, New York Attorney General Letitia James and Sen. Adam Schiff of California have also been accused of mortgage fraud.

Early this month, Trump has also fired Erika McEntarfer, the Senate-confirmed head of the Bureau of Labor Statistics, after job growth was slower than expected, claiming the numbers were inaccurate. Democrats and critics accused Trump of dangerously politicizing economic data.

Cooks’ firing is expected to be challenged in court, but her vacancy permits Trump to nominate a replacement.

Following Cooks’ firing on Monday, Rep. Jerry Nadler, D-N.Y., described Trump’s move as “reckless” and clearly unlawful.”

“The Federal Reserve Act permits removal only for cause, serious misconduct, not partisan smears dressed as ‘referrals’ from a hack like Ed Martin,” Nadler said in a statement. Martin has been tapped to be the special attorney on mortgage fraud cases.

“Trump undermining the Fed for political reasons endangers financial stability and every American’s livelihood, and must be challenged in court immediately.”

US President Donald Trump said on Monday he would immediately remove Federal Reserve governor Lisa Cook from her position on the central bank’s board of directors.

In an announcement made on his social media platform Truth Social, Trump posted a letter addressed to Cook in which he informed her of his decision and accused her of making “deceitful and potentially criminal” mortgage agreements.

Neither Cook or the Fed has commented on the sacking.

Trump has put increasing pressure on the Fed – especially its chair Jerome Powell – in recent weeks over what he sees as the US central bank’s unwillingness to lower interest rates. He has repeatedly floated the possibility of firing Powell.

According to Trump’s letter, Cook signed one document attesting that a property in Michigan would be her primary residence for the next year.

“Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year,” he said.

“It is inconceivable that you were not aware of your first commitment when making the second,” Trump said.

In a statement last week, after she was accused of mortgage fraud by the head of the Housing Finance Agency, Cook said she had “no intention of being bullied to step down from my position because of some questions raised in a tweet”.

She said she was “gathering the accurate information to answer any legitimate questions and provide the facts”.

Cook is the first African American woman to sit on the board, a position she has held since 2022.

Miran, who currently sits on the White House’s Council of Economic Advisers, has advocated for a far-reaching overhaul of Fed governance.

United States President Donald Trump has said he will nominate Stephen Miran, a top economic adviser to the US Federal Reserve’s board of governors, for four months, temporarily filling a vacancy while continuing his search for a longer-term appointment.

The president announced his decision on Thursday.

Miran, the chair of the White House’s Council of Economic Advisers, would fill a seat vacated by Governor Adriana Kugler, a Biden appointee who is stepping down Friday. Kugler is returning to her tenured professorship at Georgetown University.

The term expires January 31, 2026, and is subject to approval by the Senate. Trump said the White House continues to search for someone to fill the 14-year Fed board seat that opens on February 1.

Miran, who served as an economic adviser in the Department of the Treasury during the first Trump administration, has advocated for a far-reaching overhaul of Fed governance that would include shortening board member terms, putting them under the clear control of the president, and ending the “revolving door” between the executive branch and the Fed and nationalising the Fed’s 12 regional banks.

The appointment is Trump’s first opportunity to exert more control over the Fed, one of the few remaining federal agencies that is still independent. Trump has relentlessly criticised the current chair, Jerome Powell, for keeping short-term interest rates unchanged – a major point of contention between the White House and the central bank.

Miran has been a major defender of Trump’s income tax cuts and tariff hikes, arguing that the combination will generate enough economic growth to reduce budget deficits. He has also played down the risk that Trump’s tariffs will generate higher inflation, a major source of concern for Powell.

Trump has unsuccessfully pressured Fed policymakers – who include Powell, his six fellow board members and the 12 Fed bank presidents – to lower rates. Appointing Miran to the central bank, even in a placeholder role, gives the president a potentially more direct route to pursue his desire for easier monetary policy.

‘Trump loyalist’

It is unclear how much time Miran would have at the Fed to try to deploy his ideas, or even vote on interest rates, though.

All Fed nominees require Senate confirmation, a process that includes a hearing before the Senate Banking Committee, a vote from that panel advancing the nomination and a series of floor votes before the full Senate, where Democrats have been slowing the pace of approval for Trump appointments.

“Stephen Miran is a Trump loyalist and one of the chief architects of the President’s chaotic tariff policy that has hurt Americans’ wallets,” the Senate Banking Committee’s top-ranking Democrat, Elizabeth Warren, said on X following the announcement. “I’ll have tough questions for him about whether he’d serve the American people or merely serve Donald Trump.”

The Senate is on summer recess until September 2.

There are just four policy-setting meetings, including one on September 16-17, before the end of what would be Miran’s term.

Fed policymakers kept the policy rate in its current 4.25 percent to 4.5 percent range at their July meeting, with Powell citing somewhat elevated inflation and the concern that Trump’s tariffs could keep it that way as reasons to keep policy restrictive.

Several central bankers this month have raised concerns about labour market weakness, and at least a couple have expressed renewed confidence that tariffs may not push up inflation as much as earlier thought. Those views echo the arguments made by two Fed governors who last month dissented on the decision to leave policy on hold.

Aug. 5 (UPI) — President Donald Trump said Tuesday that Treasury Secretary Scott Bessent is no longer on the list to replace Federal Reserve Chair Jerome Powell.

“Well I love Scott, but he wants to stay where he is,” Trump said on CNBC’s Squawk Box. “I asked him just last night, ‘Is this something you want?’ ‘Nope I want to stay where I am.'”

“I just take him off. He does not want it. He likes being Treasury secretary,” Trump said.

Powell’s term as Fed chair ends in 2026, and Trump has been highly critical of his hesitation to lower interest rates, calling him a “moron” and “too late.”

Trump is considering his own replacements for the Fed’s board of governors amid his criticism of Powell over his stance on interest rates.

Others Trump is considering to replace Powell include Kevin Warsh, a financier and bank executive who previously served on the Fed’s board of governors, and Kevin Hassett, an economist and the head of the National Economic Council at the White House.

“Both Kevins are very good, and there are other people that are very good, too,” Trump said, adding that [Adriana] Kugler’s resignation “was a pleasant surprise.”

Kugler, a labor economist, announced Friday that she would step down from the Fed’s board of governors this Friday. She plans to return to teaching public policy at Georgetown University in the fall.

Another contender for Powell’s job is economist and Fed governor Christopher Waller, whom Trump appointed.

Trump nominated Powell for the Fed job in 2017, during his first term as president. President Joe Biden reappointed him during his term. Trump alleged Tuesday that Powell told him, “Sir, I’ll keep interest rates so low. I’m a low interest rate person.”

Last week, the Fed kept the interest rate unchanged at 4.25%-4.5%. Waller and governor Michelle Bowman, another Trump appointee, dissented. It was the first time two governors had dissented since 1993.