Connect with us

Economics

Trump might name Kevin Warsh as Treasury chief then Fed chair later, report says

Published

on

Kevin Warsh

Jin Lee | Bloomberg | Getty Images

President-elect Donald Trump is considering naming Kevin Warsh as Treasury secretary then ultimately sending him off to serve as Federal Reserve chair, according to a Wall Street Journal report.

A former Fed governor himself, Warsh would move over to the central bank after current Chair Jerome Powell’s term expires in 2026, according to the Journal, which cited sources familiar with Trump’s thinking.

The speculation comes with Treasury being the last major Cabinet position for which Trump has yet to state his intention.

Various reports have put Warsh as one of the finalists with Apollo Global Management CEO Marc Rowan and hedge fund manager Scott Bessent. Among the potential scenarios would be one where Bessent would lead the National Economic Council initially then go over to Treasury after Warsh takes over at the Fed.

However, Trump is known for the propensity to change his mind, and the report noted that nothing has been finalized.

Read the full Wall Street Journal story here.

Economics

Is it ever right to pay disabled workers pennies per hour?

Published

on

IN A SMALL building on Hi Hope Lane, Jeffrey Pennington sits at a desk packing ten-piece sets of zip ties. A diagram on a piece of paper helps him count before he drops the ties into a resealable bag and begins again. Mr Pennington, who has Down’s syndrome and autism and struggles to speak, once dreamed of waiting tables at Wendy’s, a fast-food joint. Today he is one of 77 disabled people working in “the shop” at Creative Enterprises, a Georgia non-profit. Mr Pennington and his co-workers assemble allergy-test and home-repair kits for big companies. Each week Mr Pennington proudly takes home a pay cheque, but after about ten hours’ work it amounts to only about $3.00.

Continue Reading

Economics

How (and why) J.D. Vance does it

Published

on

The safe choice for vice-president was not J.D. Vance. He arrived on Donald Trump’s presidential ticket with little political experience and plenty of baggage. During his two years in the Senate some senior colleagues found the Ohio freshman’s strident opposition to Republican policy orthodoxy presumptuous. And more than a few Republican lawmakers and donors still privately acknowledge they would have preferred someone else. Yet the vice-president, the third-youngest in American history, has proved adept at a role that often ends up as a political dead end. And Mr Vance, seen by America’s allies as a divisive figure, is casting himself as a uniter of his party’s fractious factions. He argues that he was uniquely placed to bridge the gap between the “techno-optimist” and “populist right” MAGA tribes.

Continue Reading

Economics

Mohamed El-Erian says Trump tariffs risk US recession

Published

on

Mohamed Aly El-Erian, chief economic advisor for Allianz SE. 

Bloomberg | Getty Images

President Donald Trump’s extensive raft of import tariffs are putting the U.S. economy at risk of recession, Allianz’s Chief Economic Advisor Mohamed El-Erian warned on Friday.

He added that Trump’s swathe of so-called reciprocal tariffs could have a significant effect on the global economy.

“You’ve had a major repricing of growth prospects, with a recession in the U.S. going up to 50% probability, you’ve seen an increase in inflation expectations, up to 3.5%,” he told CNBC’s Silvia Amaro on the sidelines of the Ambrosetti Forum in Cernobbio, Italy.

“I don’t think [a U.S. recession] is inevitable because the structure of the economy is so strong, but the risk has become uncomfortably high.”

El-Erian also warned that markets were underestimating the inflation impact of the tariffs regime.

“The first reaction has been concerns about growth. We haven’t had two other reactions yet: what will happen to growth in other countries, and that makes a question mark on whether the dollar weakness will continue, and then what does the [Federal Reserve] do?” he questioned.

“I think if we’re lucky we’ll get one rate cut, not four, and it wouldn’t surprise me if we get none,” El-Erian added.

“If it’s a normal Fed — and I say this qualification with a lot of emphasis, because this has not been a normal Fed — we would unlikely to get even one rate cut.”

This developing story is being updated.

Continue Reading

Trending