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Is deploying soldiers on New York’s subway as mad as it seems?

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NEW YORKERS have seen it all in the subway. They watch in appreciation as a rat carries a slice of pizza down a staircase. They feel powerless when someone in the throes of a mental-health crisis shouts and staggers on a subway platform. They are uplifted or perhaps annoyed when “Showtime” dancers backflip and hang from car handles and poles. Yet the recent arrival of armed soldiers near subway turnstiles has been unnerving.

Last week Kathy Hochul, New York’s Democratic governor, deployed 750 members of the National Guard as well as 250 state police to assist New York City’s police (NYPD) in searching bags at some subway stations. It is part of a plan aimed at improving subway safety, along with adding more cameras and implementing a pilot scheme to treat those suffering severely from mental illness.

Violent crime in the city has declined so far this year, but crime on the subway is a different story: it rose by 47% in January, year over year. Most of that was down to more thefts. The vast majority of the system’s 4m daily riders travel without incident. However, the abundance of individuals in crisis, coupled with some high-profile attacks, has raised alarms. A conductor’s neck was recently slashed. A woman lost her feet after a man pushed her onto the tracks. A teenager fatally shot a man in a Bronx station. Eric Adams, the city’s mayor, deployed 1,000 cops to the subway, at great expense and with some success.

Ms Hochul decided it wasn’t enough. There is a long history of political point-scoring between New York City mayors and state governors. In this case Ms Hochul may have been motivated partly by labour concerns and cost. After the attack on the conductor some employees staged what looked like a work stoppage that caused delays. The union asked for more transit police. The governor chose soldiers, who are cheaper. The backlash was immediate and came from all sides. “Our transit system is not a ‘war’ zone!” John Chell, NYPD’s chief of patrol, wrote on X. Others are worried about civil-rights violations.

When Henry Smart of John Jay College of Criminal Justice first heard about the National Guard being activated in New York, he wondered, “did something really bad happen?”. The National Guard is a state-based military unit. Members are part of the army’s reserve and can be deployed overseas, as they were regularly during the wars in Afghanistan and Iraq, but these days they are typically activated by state governors in an emergency. During the covid-19 pandemic they assisted with testing. During blizzards they clear snow and rescue people in danger. “We are efficient and task-orientated,” says Mr Smart, a 15-year veteran of the Maryland National Guard. No better crew can fill a sandbag. But this is far from an emergency. And the National Guard is not a camouflaged crime-fighting force. It is not even permitted to make arrests.

Militarising crime fighting is seldom a good idea. “Deploying troops to the subway indicates we’ve lost a battle that we actually are winning,” says Danny Pearlstein, of Riders Alliance, an advocacy group. It tells New Yorkers that we are in a “dire state of affairs”, adds Donna Lieberman, head of the New York Civil Liberties Union when, in fact, the city remains one of the safest of its size in America. Jumaane Williams, the city’s ombudsman, wrote on X that given the political consensus against the deployment, “you would think there would be at least a rethinking.”  So far Ms Hochul is holding firm, though she has at least stopped soldiers carrying long-rifles.

Rather than looking on aghast, some other cities are regarding Ms Hochul’s decision to send in the troops with curiosity. Transit unions in Chicago and Philadelphia are calling on the National Guard to be deployed on their troubled systems. Cherelle Parker, Philadelphia’s new mayor, has promised to beef up police patrols. So far, she and other local lawmakers do not want the National Guard involved. They are right to be wary. The theatrical use of soldiers does not stop crime.

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Economics

Donald Trump chooses hedge fund executive Scott Bessent for Treasury Secretary

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Scott Bessent, founder and chief executive officer of Key Square Group LP, during an interview in Washington, DC, US, on Friday, June 7, 2024.

Stefani Reynolds | Bloomberg | Getty Images

President-elect Donald Trump has signaled his intention to nominate hedge fund executive Scott Bessent as his Treasury secretary, sources tell CNBC and NBC News.

The founder of Key Square Group had been considered a strong favorite for the position along with a few other close contenders.

As head of Treasury, Bessent, 62, will be both the U.S. fiscal watchdog as well as a key official to help Trump enact his ambitious economic agenda. Both a Wall Street heavyweight and advocate for many of the incoming president’s economic goals, he would come to office at a critical time as the U.S. wrestles with a growing economy alongside long-festering debt and deficit issues.

Like Trump, Bessent favors gradual tariffs and deregulation to push American business and control inflation. In addition, Bessent has advocated for a revival in manufacturing as well as energy independence.

The prospective nominee also has deep philanthropic ties through Yale University along with Rockefeller University and Classical American homes Preservation Trust.

One obstacle Bessent will have to overcome is his past affiliation with billionaire investor and global gadfly George Soros. Bessent served as chief investment officer for Soros’ fund.

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Economics

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

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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.

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Economics

Matt Gaetz withdraws from consideration as America’s attorney-general

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MATT GAETZ, Donald Trump’s choice for America’s attorney-general, spent November 20th meeting senators and telling reporters it had been “a great day of momentum”. The next day, however, Mr Gaetz withdrew his name from consideration, acknowledging that “my confirmation was unfairly becoming a distraction.” This was not self-effacement from a MAGA firebrand, but a reflection of reality: Mr Gaetz had little chance of being confirmed even by a Republican-controlled Senate. The Republican Party may belong to Mr Trump, but his power is not absolute.

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