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The DOJ seeks Fed Chair Powell's input on CFPB funding, questioning the Fed's profitability and its impact on CFPB operations. The DOJ's letter to Powell addresses whether the Fed expects to return to profitability soon, affecting the legal rationale for withholding CFPB funds. Judge Jackson orders CFPB Director Vought to attach Powell's response to the court. The issue is central to CFPB's functioning amid legal challenges and potential staff furloughs.
Peter Navarro, a senior counselor for trade and manufacturing, warns that the U.S. economy is at risk due to Supreme Court deliberations on Trump's emergency tariffs. The court's decision, expected in January, will address the president's authority under the International Emergency Economic Powers Act. Navarro argues that tariffs have strengthened national security and economic resilience.
US stocks opened mixed on Wednesday, with the Dow rising 150 points while the S&P 500 and Nasdaq remained mostly flat. Investors are digesting labor market data and Federal Reserve comments. The US economy shed 105,000 jobs in October but added 64,000 in November, exceeding expectations. Fed official Waller supports gradual interest-rate reductions, emphasizing no rush to lower rates. Waller is considered for the next Fed chair, advocating central bank independence. New York Fed President John Williams will speak later.
Gulf stock markets fell as investors awaited US inflation data and Federal Reserve comments, affecting regional indices. Saudi Arabia's index hit a two-year low, while Qatar, Abu Dhabi, and Kuwait also saw declines. Dubai remained flat, and Oman rose slightly. The cautious sentiment was driven by upcoming US economic signals and speeches from Fed officials, impacting expectations for interest-rate moves.
According to ChainCatcher, Federal Reserve Governor Waller has stated that the Federal Reserve can proceed with policy changes at a moderate pace, without the need for drastic measures.
