Evelyn Reynolds

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    Trump Tests Fed’s Independence With Order Expanding Authority Over Agencies

    The Federal Reserve’s independence from the White House has long been enshrined in the law. But an executive order that President Trump signed this week seeking to extend his administration’s reach over independent agencies is prompting concerns about how much further he will go to challenge that separation.Mr. Trump’s directive took aim at regulatory agencies that had typically operated with limited political interference as authorized by Congress.The order partly shielded the Fed by exempting the central bank’s decisions on interest rates. Those are voted on at every meeting by seven presidentially appointed members of the Board of Governors, who typically serve 14-year terms, as well as a rotating set of five presidents from the regional reserve banks.But the order sought to exert authority over how the Fed oversees Wall Street, decisions that are ratified with majority support by the board.The order was the president’s latest attempt to centralize the executive branch’s power over the government. It requires independent organizations to submit proposed rule changes to the White House for review and gives the Office of Management and Budget oversight of how these institutions spend funds and set priorities. It also asserts that the president’s and the Justice Department’s interpretations of the law are binding and that alternative interpretations require authorization.The expansive nature of the order has raised questions about whether Mr. Trump’s decree is legally applicable to an institution like the Fed. It has also fueled speculation that the president — who has a history of trying to influence the central bank’s decision on interest rates — may eventually turn his scrutiny to monetary policy decisions.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A.I. Is Changing How Silicon Valley Builds Start-Ups

    Tech start-ups typically raised huge sums to hire armies of workers and grow fast. Now artificial intelligence tools are making workers more productive and spurring tales of “tiny team” success.Almost every day, Grant Lee, a Silicon Valley entrepreneur, hears from investors who try to persuade him to take their money. Some have even sent him and his co-founders personalized gift baskets.Mr. Lee, 41, would normally be flattered. In the past, a fast-growing start-up like Gamma, the artificial intelligence start-up he helped establish in 2020, would have constantly looked out for more funding.But like many young start-ups in Silicon Valley today, Gamma is pursuing a different strategy. It is using artificial intelligence tools to increase its employees’ productivity in everything from customer service and marketing to coding and customer research.That means Gamma, which makes software that lets people create presentations and websites, has no need for more cash, Mr. Lee said. His company has hired only 28 people to get “tens of millions” in annual recurring revenue and nearly 50 million users. Gamma is also profitable.“If we were from the generation before, we would easily be at 200 employees,” Mr. Lee said. “We get a chance to rethink that, basically rewrite the playbook.”The old Silicon Valley model dictated that start-ups should raise a huge sum of money from venture capital investors and spend it hiring an army of employees to scale up fast. Profits would come much later. Until then, head count and fund-raising were badges of honor among founders, who philosophized that bigger was better.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Clean Energy Was Lifting Manufacturing. Now Investment Is in Jeopardy.

    With the Trump administration reversing support for low-carbon power, the business case for making wind, solar and electric vehicle parts gets weaker.American manufacturing has been in the doldrums for years, battered by high borrowing costs and a strong dollar, which makes exports less competitive. But there has been a bright spot: billions of dollars flowing into factory construction, signifying that a potential rebound in production and employment is around the corner.The flood of investment has been driven by two major categories of subsidies provided under the Biden administration. One offered incentives for the construction of several enormous semiconductor plants set to begin operation in the coming years. The other supercharged the production of equipment needed for renewable energy deployment.This second category is in jeopardy as the Trump administration and the Republican-led Congress seek to roll back support for low-carbon energy, including battery-powered vehicles, wind power and solar fields.One option to raise money to offset the cost of their desired tax cuts is truncating credits for renewable power generation.“If it ends up that the timeline for these credits is shortened, then the incentives to develop an onshore manufacturing facility obviously go down,” said Jeffrey Davis, a lawyer with White & Case who specializes in renewable energy incentives. “If you’re looking at the prospect of sales and revenue over a three-year period instead of an eight-year period, the manufacturing facility may not pencil out.”The Biden administration’s strategy relied on a push and a pull. First, push the supply of clean energy products through tax breaks, loans and direct grants to manufacturers. Equally important was pulling demand along: rebates for buying electric cars, tax credits for producing renewable power, and subsidies for states and individuals to install solar arrays. Companies contemplating manufacturing investments took both sides into account when planning where to build or expand a plant.Investment in Factories Has Been BoomingAmerica isn’t yet making more stuff, but it’s building more buildings to make more stuff — largely because of subsidies for clean energy and semiconductors.

    Figures for each quarter are shown at a seasonally adjusted annual rate, in chained 2017 dollars.Source: Bureau of Economic AnalysisBy The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump says he’s weighing giving 20% of DOGE savings to Americans

    U.S. President Donald Trump revealed on Wednesday that he’s considering sending 20% of the money saved by the Department of Government Efficiency advisory group to Americans.
    “There’s even under consideration a new concept where we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt,” Trump said during his remarks at the FII Priority Summit in Miami Beach, Fla.

    His remarks came after Elon Musk said in a post on X Tuesday that he “Will check with the President” on a proposal to send U.S. households tax refund checks funded by savings created by DOGE’s cost-cutting campaign.
    That was in response to a separate post from James Fishback, CEO of the Azoria investment firm, suggesting that Trump has the opportunity to issue a so-called DOGE Dividend.
    Musk has said that his goal is to cut federal spending by $2 trillion, out of a $6.75 trillion annual budget in the latest fiscal year ended last Sept. 30. If that were met, Fishback suggests taking 20% of that, or $400 billion, and distributing it to taxpayers. That would amount to approximately $5,000 per household, he said.
    “When a breach of this magnitude happens in the private sector, the counterparty, at minimum, refunds the customer since they failed to deliver what was promised,” Fishback wrote in his proposal. “It’s high time for the federal government to do the same, and refund money back to taxpayers given what DOGE has uncovered.”
    Government stimulus checks mailed to millions of taxpayers in 2020 during the Covid pandemic bore Trump’s signature, the first time a president’s name appeared on any IRS payments, The Associated Press reported at the time.

    According to DOGE, it has saved an estimated $55 billion through its efforts. However, recent reports suggest that the actual figure is likely far below that.
    Earlier Wednesday, Bloomberg reported that the DOGE website only accounts for $16.6 billion of the $55 billion it claims to have saved. Additionally, The New York Times said on Tuesday that DOGE mistakenly cited an $8 billion saving on a federal contract that was actually for $8 million instead.
    Meanwhile, many of DOGE’s efforts have been met with court challenges. But a federal judge on Tuesday denied a request to stop DOGE from accessing federal agencies’ computer systems or directing government worker firings while litigation is ongoing.

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    Trump Labor Nominee Lori Chavez-DeRemer Faces Pressure at Senate Hearing

    Asked for her views on pro-labor legislation she backed as a House Republican, Lori Chavez-DeRemer said she would simply serve the president’s agenda.President Trump’s pick as labor secretary faced pointed questions from both parties at her Senate confirmation hearing on Wednesday over her past support for pro-union legislation, an issue that could complicate her nomination.The nominee, Lori Chavez-DeRemer, a former Republican congresswoman, was pressed repeatedly about her stand on the Protecting the Right to Organize Act, known as the PRO Act — a sweeping labor bill that sought to strengthen collective bargaining rights. She was a co-sponsor of the measure, a top Democratic priority that has yet to win passage, and one of few Republicans to back it.Asked if she continued to support it, Ms. Chavez-DeRemer demurred, saying she was no longer in Congress and would support Mr. Trump’s agenda.“I do not believe that the secretary of labor should write the laws,” she told the Senate Health, Education, Labor and Pensions Committee, which conducted the hearing. “It will be up to the Congress to write those laws and to work together. What I believe is that the American worker deserves to be paid attention to.”But in response to questions from Rand Paul of Kentucky, one of several Republican senators who have expressed opposition to her confirmation, she said she no longer backed a portion of the legislation that Mr. Paul said undermined “right to work” states, where unionization efforts face stiff legal and political barriers.The unusual nature of Ms. Chavez-DeRemer’s nomination was apparent in the makeup of the audience in the committee room, which was packed with members of the Teamsters union, identifiable by their logo-emblazoned fleeces and jackets. The nominee played up her personal connection to the union on Wednesday, saying in her opening statement, “My journey is rooted in the values instilled by my father, a proud Teamster who worked tirelessly for over 30 years.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump Eyes a Bigger, Better Trade Deal With China

    During the Biden administration, Donald J. Trump would sit in his mirrored and gold-trimmed salon at Mar-a-Lago where he had once hosted China’s leader, Xi Jinping, brooding to visitors about the outcome of the trade agreement he signed with China in 2020.Mr. Trump would castigate “stupid people” in the White House for failing to honor “my trade agreement,” and muse about how, if he won a second term, he could strike the deal of a century with Mr. Xi.Now back in the Oval Office, President Trump is eyeing the possibility of a new trade deal with China.More than half a dozen current and former advisers and others familiar with Mr. Trump’s thinking say that, although there would be significant hurdles to reaching any agreement, the president would like to strike a wide-ranging deal with Mr. Xi, one that goes beyond just reworking the trading relationship.Mr. Trump has expressed interest in a deal that would include substantial investments and commitments from the Chinese to buy more American products (despite China’s failure to buy an additional $200 billion of goods and services under the 2020 agreement). He would like an agreement to also include issues like nuclear weapons security, which he envisions ironing out man to man with Mr. Xi, his advisers say.Mr. Trump is already following a familiar playbook of tariffs and other threats as he looks to negotiate a deal. On Feb. 1, he hit Beijing with 10 percent tariffs on all Chinese imports — what the president called an “opening salvo” — quickly resulting in retaliation from the Chinese. He has also floated the idea of revoking the permanent normal trading relations the United States extended to China more than 20 years ago.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump suggests 25% tariffs on autos, pharma and semiconductors that could go even higher

    U.S. President Donald Trump speaks at Mar-a-Lago in Palm Beach, Florida, U.S., Feb. 18, 2025. 
    Kevin Lamarque | Reuters

    President Donald Trump said he may broaden the scope of U.S. tariffs on imports to include automobiles, pharmaceuticals and semiconductors.
    In remarks to reporters Tuesday, Trump said the duties would be around 25% and “go very substantially higher over a course of a year.” The president did not indicate whether the new tariffs would apply to all vehicles coming into the U.S. or be targeted toward certain countries but said they could start as early as April 2.

    However, the threat represents a broadening in the administration’s aggressive trade policy that already has included 25% tariffs on steel and aluminum imports set to take effect in March.
    The nations with the biggest auto exports to the U.S. are Mexico, Japan and Canada.
    Trump said the tariffs already are having the desired effect, with companies domiciled overseas wanting to come back to the U.S.
    On pharmaceuticals, the nation feeling the biggest impact likely would be Japan and India. On semiconductors, Trump did not indicate when they would happen. Those levies would impact Taiwan Semiconductor, which provides chips to companies including Nvidia and Apple. More

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    Senate Confirms Howard Lutnick as Commerce Secretary

    The Senate on Tuesday voted 51 to 45 to confirm Howard Lutnick to be President Trump’s commerce secretary, putting in place one of the administration’s top economic officials who will help oversee an agenda around tariffs and protectionism.Mr. Lutnick, who was the chief executive of the financial services firm Cantor Fitzgerald, became a central economic adviser to Mr. Trump over the past year and led his transition team. He has defended tariffs as a tool to protect U.S. industries from international competition, promoted lower corporate taxes and called for an expansion of energy production.As commerce secretary, Mr. Lutnick will take on a broad portfolio that includes defending U.S. business interests worldwide and overseeing restrictions on technology exports to countries like China.At his confirmation hearing last month, Mr. Lutnick said he would take a tough stance on the department’s oversight of technology sales to China and back up U.S. export controls with the threat of tariffs. He said the recent artificial intelligence technology released by the Chinese start-up DeepSeek had been underpinned by Meta’s open platform and chips sold by the U.S. company Nvidia.“We need to stop helping them,” Mr. Lutnick said of China, adding, “I’m going to be very strong on that.”As the United States resumes economic negotiations with the country, Mr. Lutnick is expected to play a central role. Mr. Trump said the new commerce secretary would oversee the work of the Office of the United States Trade Representative, which is traditionally the hub of trade policy.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More