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Speaker 1: News when you wanted with Bloomberg News. Now, I'm Doug Chrisner.

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Speaker 1: President Trump is denying that he intends to fire FED

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Speaker 1: Chair J Powell. Late this morning, a White House official

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Speaker 1: told us the President was likely to oust Powell soon,

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Speaker 1: but a short while later, President Trump said he had

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Speaker 1: no plans to fire the FED chair. He said he

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Speaker 1: was only discussing it in concept with a group of

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Speaker 1: House Republicans. Here is Trump speaking earlier to reporters in

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Speaker 1: the Oval Office.

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Speaker 2: He's a terrible He's a terrible FED chair. I'm surprised

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Speaker 2: he was appointed. I was surprised, frankly that Biden put

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Speaker 2: him in and extended him, but they did so. No,

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Speaker 2: we're not planning on doing anything.

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Speaker 1: Were very concerned by the way. It was Trump who

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Speaker 1: initially nominated Powell to lead the FED back in twenty seventeen,

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Speaker 1: and incidentally, The New York Times reported that Trump did

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Speaker 1: display a draft of Powell's termination letter during that meeting

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Speaker 1: with House GOP members. Market's whip saw it following reports

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Speaker 1: of the President and being close to firing Powell, although

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Speaker 1: when the dust settled, it seemed as though Markets looked

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Speaker 1: through the episode as political theater. We had the S

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Speaker 1: and P rising today by three tenths of one percent,

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Speaker 1: yields down across the treasury curve. The two year most

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Speaker 1: sensitive to imminent FED move slid five basis points to

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Speaker 1: three point eight nine percent. Meantime, we had the dollar

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Speaker 1: halting of four day advance. Now the race is on

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Speaker 1: to find a successor to the FED chairman. Bloomberg News

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Speaker 1: has learned that Kevin Hasset is in the early poll

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Speaker 1: position in the President's apprentice style competition. Massachusetts Senator Elizabeth

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Speaker 1: Warren says the next FED chair should not come from

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Speaker 1: the administration.

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Speaker 3: People in the cabinet. People are serving in the administration,

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Speaker 3: serve at the pleasure of the president. That is the structure.

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Speaker 3: That is fine. Donald Trump wants to get mad at

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Speaker 3: one of them and firearm have at it, baby. But

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Speaker 3: it's different for the FED share and that is why

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Speaker 3: that office needs to be held by someone who is independent.

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Speaker 1: That was Massachusetts Senator Elizabeth Warren, speaking on Bloomberg's Balance

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Speaker 1: of Power. The head of the Atlanta Fed, Raphael Bostik,

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Speaker 1: says he's in favor of holding interest rates steady given

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Speaker 1: the recent data that we have seen on inflation. Speaking today,

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Speaker 1: on Fox Business, Bostick said signs of rising inflationary pressure

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Speaker 1: are cause for concern. Now we know that underlying inflation

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Speaker 1: in the US rose by less than expected in June

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Speaker 1: for a fifth straight month. However, tuesdays reading on consumer

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Speaker 1: prices showed the tariffs were beginning to lift prices for

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Speaker 1: some goods, and Bostick said we may be at an

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Speaker 1: inflection point now. Fed officials have held off from lowering

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Speaker 1: rates this year out of concern the tariffs will lift inflation. Meantime,

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Speaker 1: the head of Bank of America, Brian moynihan, says the

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Speaker 1: FED will not cut interest rates until next year.

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Speaker 4: If you think the prior FED has been slow to

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Speaker 4: lower rates, you might lower faster. Our team believes that

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Speaker 4: the Fed will lower rates in a second half of

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Speaker 4: next year by hundred basis points, no change until them

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Speaker 4: because inflation is still going through the system. If that

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Speaker 4: brings a FED funds rate down closer to three, which

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Speaker 4: they think is probably more of a long term rate

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Speaker 4: and frankly, is more similar to what we had for

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Speaker 4: most of American history.

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Speaker 1: That is Brian moynihan, CEO of Bank of America, and

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Speaker 1: you can listen to the entire conversation on the Bloomberg

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Speaker 1: Talks podcast. The Department of Justice is firing Maureen Comy.

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Speaker 1: She is the federal prosecutor of Sean Ditty Combs, as

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Speaker 1: well as Jeffrey Epstein and his associate Justlaine Maxwell. Comy

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Speaker 1: is also the daughter of former FBI Director James Comy.

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Speaker 1: There was no specific reason given for her firing from

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Speaker 1: the US Attorney's office in the Southern District of New York. Meantime,

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Speaker 1: President Trump has condemned supporters who have criticized his administration's

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Speaker 1: decision to withhold records from the Jeffrey Epstein sex trafficking investigation.

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Speaker 1: Here is Trump's former vice president Mike Pennce speaking to

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Speaker 1: CBS News.

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Speaker 5: Whether or not the facts justify charges, I think that

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Speaker 5: anyone who participated or was associated with this despicable man

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Speaker 5: ought to be held up to public scrutiny.

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Speaker 1: That is former Vice President Mike Pence speaking to CBS News.

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Speaker 1: President Trump has softened his tone when it comes to

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Speaker 1: China in an effort to secure a summit with his

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Speaker 1: counterparts she Chinping. We are told Trump is now focused

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Speaker 1: on cutting purchase deals with Beijing and celebrating quick wins

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Speaker 1: rather than addressing root causes of trade imbalances. Here is

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Speaker 1: Bloomberg's Mike Shephard.

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Speaker 6: He has spoken of his rapport with the Chinese leader

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Speaker 6: in a number of public settings. Already. Last week we

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Speaker 6: saw a Secretary of State Marco Rubio meeting with his

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Speaker 6: Chinese counterpartner, perhaps set the stage four an encounter between

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Speaker 6: the two leaders toward the end of the year. And

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Speaker 6: all of this, of course, stands in contrast with some

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Speaker 6: of the harsher rhetoric aimed at traditional US allies, the

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Speaker 6: European Union in Brazil.

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Speaker 1: That is Bloomberg's Mike Sheppard. All also told that Trump's

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Speaker 1: softer handling of China is causing a rift among some

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Speaker 1: of his advisors, some wanting to hold a hardline against Beijing,

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Speaker 1: others are supporting a more conciliatory approach. And that is

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Speaker 1: news when you want it with Bloomberg News. Now, I'm

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Speaker 1: Doug Krisner, and this is Bloomberg