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Kevin Warsh Pitched a Case for Fed Rate Cuts. His Future Colleagues Are Skeptical.

  • Kevin Warsh, nominated to be Fed chair, faces skepticism over his argument for interest rate cuts based on an AI productivity surge.
  • Warsh has argued an AI boom will increase productivity without reigniting price pressures.
  • Fed officials are wary, citing inflation above a 2% target for six years, soaring deficits, and geopolitical disruptions like the Iran war.

 
In Fed Fight, Trump Faces the Senator With Nothing to Lose

  • Sen. Thom Tillis blocks Trump’s Fed nominee, Kevin Warsh, until a Justice Department probe of Jerome Powell concludes.
  • Tillis, who plans to retire at the end of his term, is leveraging his vote in ways described as his “YOLO era.”
  • Senate Majority Leader John Thune stated that the White House will need to deal with Tillis and the committee.
Commerce Secretary Lutnick Says Trade Deal With Canada, Mexico Needs to Be ‘Reconsidered’

  • Commerce Secretary Howard Lutnick stated President Trump views the U.S.-Mexico-Canada trade treaty as a “poor deal” needing “reconsideration.”
  • Lutnick criticized Canada’s trade strategy with Washington and Prime Minister Mark Carney’s efforts to fortify trade ties with China.
  • The USMCA faces a formal review, with Canadian officials in talks with U.S. counterparts to address issues and seek tariff relief.
Fannie Mae to Accept Crypto-Backed Mortgages for the First Time

  • Fannie Mae will soon accept so-called crypto-backed mortgages, a new product from Better Home & Finance and Coinbase Global that allows home buyers to pledge crypto.
  • The goal is to tap in to demand from potential home buyers who don’t want to use their cash savings for a down payment and don’t want to sell their crypto investments.
  • Once the crypto assets have been pledged for the down payment, the homeowner can’t trade them.
 

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