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Meta is setting up a new California-focused political action committee (PAC) to back state-level candidates favoring lighter regulation of technology, particularly artificial intelligence, Politico reported on Tuesday. The group, named Mobilizing Economic Transformation Across (Meta) California – a ‘super’ PAC, will support candidates for state offices from either party who advocate AI innovation over stringent rules, the report said. The Facebook and Instagram parent plans to spend tens of millions of dollars through the PAC, potentially positioning the company among the state’s top political spenders ahead of the 2026 governor race, Politico said. Meta did not immediately respond to a request for comment. Reuters could not independently verify the report. Jaspreet Singh, Reuters
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E-Commerce
Federal Reserve Governor Lisa Cook will file a lawsuit to prevent President Donald Trump from firing her, a lawyer for the embattled central bank official said on Tuesday, kicking off what could be a protracted legal fight over the White House’s effort to shape U.S. monetary policy. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” Cook’s lawyer, prominent Washington attorney Abbe Lowell, said in a statement. The statement was issued a day after Trump said he would fire Cook, the first Black woman to serve on the Fed’s governing body, for alleged “deceitful and potential criminal conduct” related to mortgages she took out in 2021. Cook has said Trump does not have the authority to fire her and has vowed to stay on the job. Trump’s showdown with the nominally independent central bank follows other largely successful efforts to bring other elements of the U.S. government under his direct control. Since returning to office in January, the president has overseen the departure of hundreds of thousands of civil servants, dismantled several agencies and withheld billions of dollars of spending authorized by Congress. Trump pressured the Fed to lower interest rates during his first term in the White House and he has escalated that campaign in recent months. The president has demanded that rates be cut by several percentage points and threatened to fire Fed Chair Jerome Powell, although he recently backed away from that saber-rattling. The attempt to influence U.S. monetary policy has knocked confidence in the dollar and U.S. sovereign debt and sparked fears of global financial turmoil. But market reaction to Trump’s latest Fed gambit was tame on Tuesday. Wall Street’s main equities indexes were largely flat on the day, while the dollar dropped. Yields on 2-year, 5-year and 10-year Treasury notes fell, reflecting higher expectations of a near-term rate cut, and rose on longer-dated bonds, in a sign that the Fed’s inflation-fighting credentials might weaken. Trump said in a letter to Cook on Monday that he had “sufficient cause” to fire her because she had described separate properties in Michigan and Georgia as primary residences on mortgage applications before she joined the Fed in 2022. In recent months, Trump has fired several Black women who held senior government positions, including the head of the Library of Congress and the chair of the National Labor Relations Board. The Trump administration has also targeted other political opponents with similar accusations of mortgage fraud, including New York Attorney General Letitia James, a Black woman who secured a half-billion-dollar civil fraud judgment against Trump last year. A New York appeals court threw out the penalty last week, while preserving the case. Mortgage questions William Pulte, a Trump appointee who is director of the Federal Housing Finance Agency, first raised questions about Cook’s mortgages last week and referred the matter to U.S. Attorney General Pamela Bondi for investigation. Bondi has yet to say whether the Justice Department will take action. Trump accused Cook on Monday of having “deceitful and criminal conduct in a financial matter” and said he did not have confidence in her “integrity.” Cook took out the two mortgages in question when she was an academic. Loans for primary residences can carry lower rates than mortgages on investment properties, which are considered riskier by banks. Cook listed three mortgages, including two personal residences, on a 2024 financial disclosure form. She is due to serve on the Fed board through 2038, but the Federal Reserve Act of 1913 allows removal of a sitting governor “for cause.” Until now, that power has not been tested by U.S. presidents, who largely have taken a hands-off approach to Fed matters as a way to ensure confidence in U.S. monetary policy. Legal scholars and historians said the thicket of issues that could be raised in a legal challenge would span questions around executive power, the Fed’s unique quasi-private nature and history, as well as whether anything Cook did amounted to cause for removal. Peter Conti-Brown, a scholar of the Fed’s history at the University of Pennsylvania’s Wharton School, noted that the mortgage transactions preceded her appointment to the Fed and were in the public record when she was vetted and confirmed by the Senate. “The idea that you can then reach back, turn the clock backward and say, you know, ‘All these things that have happened before now constitute fireable offenses from your official position’ is to me incongruous with the entire concept of ‘for cause’ removal,” Conti-Brown said. It is unclear how the matter might play out ahead of the Fed’s next policy meeting on September 16-17. Academic research has consistently found that policymakers who are allowed to manage inflation independent of political meddling generally achieve better outcomes, a principle that may now be tested at the world’s most influential central bank. “The Fed as an institution escaped harm in the first Trump administration, and will not be so fortunate this time around,” said Tim Duy, chief U.S. economist at SGH Macro Advisors. Cook’s departure would allow Trump to select his fourth pick to the Fed’s seven-member board, including two incumbents and the pending nomination of White House economist Stephen Miran. Michael S. Derby; Additional reporting by Nicole Jeanine Johnson and Kanishka Singh; Writing by Andy Sullivan; Reuters
Category:
E-Commerce
Americans view of the U.S. economy declined modestly in August as anxiety over a weakening job market grew for the eighth straight month. The Conference Board said Tuesday that its consumer confidence index ticked down by 1.3 points to 97.4 in August, down from Julys 98.7, but in the same narrow range of the past three months. The small decline in confidence was in line with the forecasts of most of the economists who were surveyed. A measure of Americans short-term expectations for their income, business conditions and the job market fell by 1.2 points to 74.8, remaining significantly below 80, the marker that can signal a recession ahead. Consumers assessments of their current economic situation also fell modestly, to 131.2 in August from 132.8 in July. While the unemployment and layoffs remain historically low, there has been a noticeable deterioration in the labor market this year, and mounting evidence that people are having difficulty finding jobs. U.S. employers added just 73,000 jobs in July, well short of the 115,000 analysts expected. Worse, revisions to the May and June figures shaved 258,000 jobs off previous estimates and the unemployment rate ticked up to 4.2% from 4.1%. That report sent financial markets spiraling, spurring President Donald Trump to fire Erika McEntarfer, the head of Bureau of Labor Statistics, which tallies the monthly employment numbers. Another government report showed that U.S. employers posted 7.4 million job vacancies in June, down from 7.7 million in May. The number of people quitting their jobs a sign of confidence in their prospects elsewhere also fell. More jobs data comes next week when the government releases its August job gains and June job openings reports. The Conference Board’s report said that references to high prices and inflation increased again and were often mentioned in tandem with tariffs. Other government data this month showed that while prices at the consumer level held fairly steady from June to July, U.S. wholesale inflation surged unexpectedly last month. Economists say that’s a sign that Trumps sweeping taxes on imports are pushing costs up and that higher prices for consumers may be on the way. The share of consumers expecting a recession over the next year rose in August to the highest level since April, when Trump’s tariff rollout began. The share of survey respondents who said they intended to buy a car in the near future rose, while those planning to purchase a home remained stable after Julys decline. Those saying they planned to buy big-ticket items like appliances fell, but there were big variations among product categories. Respondents who said they planned to take a vacation soon, either inside of the U.S. or abroad, also declined. Matt Ott, AP business writer
Category:
E-Commerce
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