June 25, 2025: WSJ: Trump Considers Naming Powell Replacement, NATO Goals, More

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Speaker 1 (00:02):
News when you want it with Bloomberg News Now, I'm
Doug Prisner. President Trump is reportedly weighing whether to replace
FED share Jay Powell before his term ends in eleven months.
Wall Street Journal says in recent weeks, the President has
toyed with the idea of selecting and announcing Powell's replacement
by September or even October. Now, the President has referred

(00:23):
to the FED chair as too late Powell due to
his reluctance to lower interest rates. Earlier today, Powell said
the Fed doesn't need to be in a rush to
cut rates. He told the Senate Banking Committee it's tough
to figure out how tariffs will impact consumer prices.

Speaker 2 (00:38):
Near term measures of inflation expectations have moved up over
recent months, as reflected in both market and survey based measures.
Respondents to surveys of consumers, businesses, and professional forecasters appoint
to tariffs as a driving factor beyond the next year
or so. However, most measures of longer term expectations remain
consistent with our two percent inflation goal.

Speaker 1 (00:59):
That is FED shareja Powell testifying to the Senate Banking Committee. Now,
the journal reports names being floated as successors to Powell
include former FED Governor Kevin Walsh, a NEC director Kevin Hassett,
and former World Bank President David Malpass, as well as
FED Governor Chris Waller. Meantime, Goldman Sachs vice chair Robert

(01:19):
Kaplan says Powell is right to exercise caution over the
impact of tariffs. Here is Kaplan speaking earlier to Bloomberg.

Speaker 3 (01:27):
Since April, I would argue that was probably the height
of the uncertainty. I think since then, with the ninety
day pause, with some clarity, that we set a provisional
ten percent rate, not the early April Liberation Day rates.
I think the business community is moving toward greater clarity,

(01:47):
but we're not quite there yet.

Speaker 1 (01:49):
Robert Kaplan there, he is the vice chairman at Goldman
Sachs speaking to Bloomberg. We go to the NATO summit next,
where there was a bold commitment from all thirty two
members to raise military spending to five percent of GDP. Now,
this dramatic move underscores the alliance's growing concern over Russian aggression.
Bloomberg's Enmory hor Dern is covering the summit at the Hague.

Speaker 4 (02:11):
It's quite an ambitious goal. And Mark Rutta, the Secretary General,
has been talking about the fact that he thinks the
alliance was going to be able to get this over
the finish line. Five percent in terms of GDP spending
needs to go to defense now if you are part
of this alliance.

Speaker 1 (02:25):
That's Bloomberg'samory Hordern covering the NATO summit at the Hague.
By the way, NATO member Spain was a little reluctant
to meet that five percent target, and it drew swift
reaction from President Trump. He threatened to impose tougher trade
restrictions on Spain. Congressional Republicans are racing to meet a
self imposed fourth of July deadline for passage of the

(02:46):
President's tax and spending bill. If and when it passes
the Senate, it will be back to the House before
it lands on the President's desk. Here is Indiana Republican
Congresswoman Aaron Houchin.

Speaker 5 (02:58):
Well, I think there are a number of things that
could make it difficult when the bill comes back. We've
got some concerns with provider taxes, We've got concerns with
hsas being not included in the Senate version. But I
think at the end of the day, Speaker Johnson, House Republicans,
We've been encouraging our colleagues in the Senate to try
to stick with the plan that the House laid out

(03:18):
as much as possible to give this bill the glide
path necessary to get to the President's desk by July fourth.

Speaker 1 (03:24):
That is Aaron Houchin, Republican congresswoman from Indiana speaking there.
By the way, there are numerous parts of the bill
still in flux that would include the deduction for state
and local taxes known as salt. It's become a major
point of tension between the House and the Senate. We
go to New York City next. Zorn Mamdani, a thirty
three year old Democratic Socialist, is the presumptive winner of

(03:47):
the Democratic primary for the mayor of New York City.
Here is Aisha Mills, CEO and founder of Community Asset Management.

Speaker 6 (03:54):
If you look at how the candidates kind of paired
off or quatted off and started to call in dorse
one another, you saw a progressive Jew co endorse Mom Donnie,
who happens to be Muslim, and then you saw these
coalition come together of folks that said, okay, well, we're
doing brank choice. Right now, let's jump in and support
each other because we know we'll all be great for

(04:16):
New York City, and that coalition is ultimately what's going
to win him, presumably in the general.

Speaker 1 (04:22):
Ayusha Mills there from Community Asset Management. Now, going forward,
Mom Donnie will face current mayor Eric Adams, who is
running this time as an independent, as well as Republican
Curtis Sliwa and Independent Jim Walden. We go to sports next.
The Dallas Mavericks have selected duke forward Cooper Flagg with
the number one pick in the NBA draft. And that

(04:44):
is news when you want it. With Bloomberg News. Now,
I'm Doug Krisner, and this is Bloomberg