The Escalating Standoff Over the Federal Reserve

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Imani Moise (0:34)

The Middle East was a bright spot for luxury brands. Not anymore.

Plus, tensions between the White House and the Federal Reserve complicate the confirmation process for the next Fed chair.

Nick Timiraos (0:44)

We're in an old-fashioned standoff here, and it's not clear how this is going to resolve.

Imani Moise (0:49)

And a jury finds that Live Nation illegally monopolized concerts and ticketing. It's Wednesday, April 15th. I'm Imani Moise for The Wall Street Journal, filling in for Alex Ossola. This is the PM Edition of What's News, the top headlines and business stories that move the world today.

In an interview that aired this morning on Fox Business, President Trump renewed his threats to fire Jerome Powell.

Margarita Stankati (1:16)

And he said, he's not leaving if, you know.

SPEAKER_6 (1:18)

Well, then I'll have to fire him, okay? If he's not leaving on time, I've held back firing him.

Margarita Stankati (1:24)

I've wanted to fire him, but I hate to be controversial.

Imani Moise (1:27)

Trump also defended the criminal investigation into the Fed chair. Yesterday, two prosecutors visited the Fed construction project that's at the heart of the probe. WSJ chief economics correspondent Nick Timiraos joins us now to discuss the future of the Fed.

So Nick, what does Trump doubling down on the investigation into Powell and threatening to fire him mean for his nominee, Kevin Warsh's confirmation process?

Nick Timiraos (1:50)

Well, we're in an old fashioned standoff here and it's not clear how this is going to resolve. On one side, you have Republican Senator Tom Tillis. He is retiring, so he is not up for reelection and he has repeatedly said he will not confirm any nominee until this investigation goes away.

Now, you have President Trump saying he is eager to see the investigation continue. So it is harder today than it was yesterday to see how this whole standoff gets resolved.

Imani Moise (2:21)

Where do these developments leave Powell?

Nick Timiraos (2:23)

A lot of people had thought, including supporters of the Trump administration, that this would go away.

Imani Moise (2:30)

J.

Nick Timiraos (2:30)

Powell's term ends in four weeks, but Donald Trump seems to be veering in a much different direction here.

So much so that he is inviting not only the prospect that Warsh isn't confirmed, but also the prospect that J. Powell stays on the Fed's board. Chairs have almost always left the board when they are done serving as chair. But Powell said he wouldn't leave if this investigation is ongoing. But then he said even if it is resolved, he would make his decision based on what he thought was best for the independence of the Fed.

Imani Moise (3:04)

Has Warsh reacted to any of these new developments in the Fed probe?

Nick Timiraos (3:08)

Kevin Warsh has not said anything really publicly about any of this since he was announced as the president's pick. But we are going to hear from him next week when he appears before the Senate Banking Committee for his confirmation hearing.

Imani Moise (3:20)

That was WSJ Chief Economics Reporter Nick Timiraos. Thanks for joining us.

Nick Timiraos (3:24)

Thanks for having me.

Imani Moise (3:25)

More updates about the Trump administration today. Earlier this year, it said it would authorize the maximum number of H-2B guest worker visas allowed under the law, reversing an earlier plan to slash the program's size. We're exclusively reporting that the shift followed a lobbying campaign by lawmakers and industry leaders with ties to Trump properties. The visas are used often by landscapers, fisheries, and vacation towns that have trouble finding Americans for seasonal work.

The White House says that the administration allowed for more visas because a crackdown on illegal immigration has removed work authorization from more than one million people.

The administration is expected to select former Deputy Surgeon General Erica Schwartz to lead the CDC.

The move isn't final and depends on approval from President Trump. The White House has sought to rein in Health Secretary Robert F. Kennedy Jr. on vaccine policy, and the CDC nominee's dance on vaccines will play an important role in securing Senate confirmation. Schwartz recently posted a video on social media for National Public Health Week.