August 1, 2025: Trump: Powell Should Resign Like Kugler, Trump Fires BLS Chief, More

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Episode Transcript

Speaker 1 (00:00):
News when you want it with Bloomberg News. Now I'm
in kleggy. President Trump says Jerome Powell should follow in
the footsteps of Federal Reserve Governor Adriana Kugler and resign
from the Central Bank, ratcheting up his feud with a
central Bank chair. Trump said on social media too late.
Powell should resign, just like Adriana Kugler, a Biden appointee,
resigned she knew he was doing the wrong thing on

(00:22):
interest rates. He should resign. Also, the Fed announced Friday
that Cougler will step down from her position on its board,
handing Trump an opportunity to install a policymaker who aligns
with his demands for lower interest rates. Cougler's governor term
was not set to expire until January twenty twenty six.
Trump expressed his feelings about Cougler leaving when he spoke

(00:44):
with reporters.

Speaker 2 (00:45):
I have an open spot on the Federal Reserve Board.
I'm very happy about that.

Speaker 1 (00:49):
Bloomberg's Michael McKee says this brings up a huge issue
for the FED and for the Trump administration.

Speaker 3 (00:55):
The President's issue is does he put somebody in who
he anticipates being the next chair when Jay Paul steps
down his chair in may or. Does he hope that
Paul steps down in may as a governor he can
stay on till twenty twenty eight and appoints somebody else
to the seat. Right now, the President's going to have
to make a decision. It appears fairly quickly.

Speaker 1 (01:17):
President Trump told officials to fire Rika mcintar for the
commissioner of the Bureau of Labor Statistics, hours after a
report showed US job growth cooled sharply over the last
three months. I have directed my team to fire this
Biden political appointee immediately. Trump said this on social media Friday,
accusing her without evidence of politicizing the job support. Friday's

(01:38):
jobs report from the BLS showed payrolls increased seventy three
thousand in July after the prior two months were revised
down by nearly two hundred and sixty thousand. In the
past three months, employment growth has averaged a paltry thirty
five thousand, which is the worst since the pandemic. Bloomberg
Schuyler Woodhouse on the President's decision to fire the head
of Labor Statistics, he tends to do things, you know

(02:00):
out of m pulse, and this is clearly one of
those things where he got upset and is taking action.
White House Economic advisor Peter Navarro told Bloomberg's Balance of
Power that better numbers are needed so that the Fed
can make better decisions, and that he himself has entrusted
numbers from the BLS for quite a long time. Navarro
also said, that's the biggest miss in fifty years.

Speaker 2 (02:21):
Okay, so that's incompetence. How do you miss that badly?
And if they missed that badly, the implications of this
or this Suppose those numbers were right and we had
known them accurately three months ago, interest rates would probably
be one hundred basis points lower, not just fifty.

Speaker 1 (02:38):
A down Friday and a losing week for the S
and P five hundred index, we get more from Bloomberg's
Charlie Pellett.

Speaker 4 (02:43):
For the week, the S and P five hundred index
was down two point four percent. Wall Street saw a
broad flight from risk assets, with stock sinking amid mounting
signs of job market weakness. President Trump's latest volley of
tariffs and geopolitical worries also weighing on markets. An uninspiring
outlook from Amazon that spurred a route in megacaps. Friday,

(03:06):
Amazon was down eight point three percent for the week,
The Dow dropped two point nine percent, while Nazdak was
down two point two percent. In New York. Charlie Pellett Bloomberg.

Speaker 1 (03:17):
Radio, President Trump says the US is moving two nuclear
submarines to respond to what he called highly provocative statements
from former Russian president Dmitri Medvedev. Bloomberg Intelligence Senior Defense
analyst Wayne Sanders says the President is using this as
a tactic because.

Speaker 5 (03:33):
It's very, very difficult to find out where these things
are anyway, and because of this stuff technology, because of
what we use and how quiet they are, they could
be anywhere anyway. So it is it's an opportunity for
the President to say, hey, this thing is over there.
That is an overt way versus some of the clandestin
way that these things move anyway.

Speaker 1 (03:53):
You can hear more from Wayne Sanders on the Bloomberg
Balance of Power podcast. Mexico and the US are closing
in on a to combat drug trafficking and violence, a
pac that could quell some of President Trump's chief concerns
with his southern neighbor and lead to a wider agreement
covering trade. Terms of the deal are still being hammered out,
but Mexican President Claudia Scheinbaum said they include sharing more

(04:14):
intelligence information, reducing the flow of fentaal precursor chemicals into
her country, and cracking down on the flow of guns
from the US. The White House is eyeing a settlement
of as much as one hundred million dollars in negotiations
with Cornell University about an agreement that would reinstate hundreds
of billions of dollars in frozen federal research funding. A
deal could be announced as soon as next week. One

(04:36):
of the issues still under discussion is whether the pact
would call for a resolution monitor to supervise how Cornell
was carrying out changes required by the US, an arrangement
accepted by Columbia University at a landmark two hundred and
twenty one million dollar deal last month. The Friday numbers
on Wall Street. The Dow dropped five forty two, Nasdaq
fell for seventy two, nearly two and a quarter percent.

(04:57):
The S and P dropped one oh one, its biggest
one day drops since May. The ten year treasurer yield
at four point two one percent, the two year at
three point six eight percent. That's news when you want
it with Bloomberg News Now I made Koleggi. This is
Bloomberg