The Escalating Standoff Over the Federal Reserve

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0:33The 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. We're in an old-fashioned standoff here, and it's not clear how this is going to resolve. 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 Osula. This is the PM edition of What's News, the top headlines and business stories that move the world today.

1:10In an interview that aired this morning on Fox Business, President Trump renewed his threats to fire Jerome Powell. And he said he's not leaving if, you know... Well, then I'll have to fire him, okay? If he's not leaving on time, I've held back firing him. I've wanted to fire him, but I hate to be controversial. 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 Timoros 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 Warshett's confirmation process?

1:49Well, 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 re-election. 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. Where do these developments leave Powell? A lot of people had thought, including supporters of the Trump administration, that this would go away.

2:30Jay 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 Jay 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. Has Warsh reacted to any of these new developments in the Fed probe?

3:08Kevin 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. That was WSJ chief economics reporter Nick Timmeros. Thanks for joining us. Thanks for having me. 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.

3:43The 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. And 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 stance on vaccines will play an important role in securing Senate confirmation.

4:20Schwartz recently posted a video on social media for National Public Health Week. When I was a military physician, my job was all about readiness. It was all about public health, prevention, vaccines, early detection. If we get that right, we change lives before illness ever begins.

4:40The SEC has approved ending a rule aimed at reducing risky trades. The change could encourage small investors to get even more active in the U.S. stock market. Under that old rule, investors who bought and sold the stock on the same day and did that four times in a five-day period had to keep at least a$25 ,000 cash buffer in their margin accounts. Stocks today largely continued their rebound from losses caused by the Iran war. The S &P closed above 7 ,000 for the first time, gaining 0.8%. The Nasdaq climbed 1.6%, its 11th day of gains, and hit its first record since October, while the Dow slipped 0.1%.

5:19Bank of America reported a 17 % jump in profit in the first quarter. Transactions across debit and credit cards rose 6 % as consumers spent more on travel, entertainment, retail, and gas. Bank of America CEO Brian Moynihan said on the company's quarterly earnings call, that the economy remains strong. You can see where the resilience comes from in the U.S. The U.S. consumer continues to spend through all its different platforms here at Bank of America. But in the luxury sector, the sales rebound they were hoping for hasn't materialized. Louis Vuitton owner LVMH, Gucci owner Kering, and Birken bag maker Hermes all warned this week about the Iran war's effect on big spending consumers in the Middle East.

6:01Some stores have shut, and the conflict has disrupted international travel and kept wealthy local customers from going shopping in Europe. And in other corporate news, Snapchat parent Snap announced plans to lay off around 1 ,000 employees today, slashing its workforce by about 16%. The company said the cuts were necessary for profitability. Coming up, the uncertain future for LiveGolf. And the dirty job accountants wish they could offload to AI. That's after the break.

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7:09International mediators are pushing to extend the ceasefire between the U.S. and Iran. Officials say the two countries have agreed in principle to meet, but haven't decided on a time or place. Meanwhile, the U.S. Central Command says no ships have evaded its blockade of Iranian ports in its first 48 hours. The White House and U.S. military published a clip of a warning to ships.

7:46Iran's top military commander warned the U.S. against continued enforcement of the blockade. In Iran, hardliners now dominate the top ranks of political and military leaders after U.S. and Israeli strikes killed many officials. The Wall Street Journal's Margarita Stankati says that could make the conflict even more difficult to resolve. The hardening of Iran's position is not good news for negotiations. We have seen that in the team that Iran has sent to Islamabad, there are some hardliners. But above all, they also respond to a much more hardline leadership inside Iran. So we may see some flexibility because Iran has suffered incredible losses during the war.

8:24and the war has worsened an already dire economic situation. But in terms of the prospects of this turning into a more lasting peace or better relations with Iran, that is a lot less likely now. Margarita says that's created difficulties for Iranians who are against the regime. Many Iranians who opposed the regime in January took the streets against their government. Some of them did hope that the war could pave the way for regime change, but that seems extremely likely now. So they're caught in a terrible situation where they're facing an even more hard-line regime that has made it clear they will not tolerate any domestic dissent.

9:02And they also are on the receiving end of the war.

9:11A federal jury today found that Live Nation illegally monopolized the ticketing market for major concerts in the U.S. It's a win for a group of states that accused it of overcharging music fans and pressuring venues to use its dominant ticketing service, Ticketmaster. Now, the group of states will likely try to persuade a judge that Live Nation should be split up. The Justice Department last month decided to settle its case against Live Nation. That left the states to try their claims without the federal government. Live Nation denied that it was an illegal monopoly and said the state's case exaggerates its market power.

9:44After shaking up the golf world with its debut in 2022, LiveGolf is on the brink of collapse. The Wall Street Journal has learned that Saudi Arabia's sovereign wealth fund is considering pulling its financial backing. LiveGolf for years has been hemorrhaging money and struggled to find a meaningful television audience in the U.S. Exactly when Live might close wasn't immediately clear, and there's no guarantee that it would fold completely. It's tax day, but April actually isn't the worst time of year for some accountants. While AI has made bookkeeping easier, some tasks still require elbow grease and protective gear during the depths of winter.

10:23WSJ reporter Mark Maurer says there's a dirty job that accountants desperately wish AI could do. Auditors sometimes find themselves covered in dust or manure, trying to carry out an inventory count as part of a year-end audit. They have to climb, say, to the top of a grain bin, running around and counting chickens and pigs, maybe counting thousands of bolts on New Year's Eve when your friends want to hang out. And instead, you've been sent on a trip to the middle of nowhere. Matt Gardner is an Iowa-based auditor who works with a lot of agricultural businesses, and he recently climbed several 90-foot grain bins where he's measuring millions of bushels of corn.

11:10I'm going down an elevator. It's a hundred pound capacity. Hopefully I don't break it. It's not a typical accounting task, but it's one that's critical. That was WSJ reporter Mark Maurer. And that's West News for this Wednesday afternoon. Today's show was produced by Danny Lewis and Pierre Bien-Aimé with supervising producer Tali Arbel. Additional sound courtesy of S &P Global Market Intelligence. I'm Imani Moiz for The Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

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