How Trump’s attacks on Powell could threaten the Fed’s future

Summary

Apple News Today: How Trump’s Attacks on Powell Could Threaten the Fed’s Future
Episode Release Date: July 17, 2025
Host: Shemitah Basu

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Introduction

In this episode of Apple News Today, host Shemitah Basu navigates through several pressing issues shaping the national discourse. From President Trump's recent maneuvers against Federal Reserve Chair Jerome Powell to significant federal funding cuts for public media, and the ongoing struggles to rebuild Los Angeles post-wildfires, Basu provides a comprehensive overview of the stories that matter today.

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President Trump's Campaign Against Federal Reserve Chair Jerome Powell

The episode opens with an in-depth analysis of President Donald Trump's latest attempts to unseat Federal Reserve Chair Jerome Powell, a move that could have profound implications for the Fed's independence and future monetary policy.

Flip-Flopping on Powell's Removal: Over the past 48 hours, President Trump has oscillated between threatening to remove Powell and retracting those threats. On Tuesday, he expressed his intention to consider Powell’s dismissal, seeking opinions from GOP lawmakers. By Wednesday, he reversed his stance, deeming such an action "highly unlikely" ([00:05]).

Legal Constraints and Justifications: Despite the President’s authority to appoint Fed chairs—a power he exercised when appointing Powell during his first term—legal experts emphasize that removal requires "reasonable cause." As Shemitah Basu notes, "market sell off" ensued following these threats ([00:05]). Neil Irwin, Axios' chief economic correspondent, elaborates on the situation:

"This has kind of come out of nowhere... it really does look like this is an excuse to go after Powell for something other than just, oh, you got to cut interest rates tomorrow" ([02:05]).

Federal Reserve's Stance: The Fed defends Powell, attributing the cost overruns in their D.C. headquarters renovation to "changes with the original design, more expensive labor and materials, and unforeseen expenses like needing to mitigate asbestos" ([02:21]). Legal opinions suggest that these financial issues do not constitute valid grounds for dismissal under the Federal Reserve Act.

Potential Impacts on Financial Stability: Irwin warns of broader economic repercussions if the Fed's independence is compromised:

"If we enter that world, all bets are off on what the future looks like for all kinds of US Financial assets, borrowing costs, and the dollar" ([03:03]).

Basu highlights the historical significance of an independent Fed in maintaining the U.S. Treasury's reputation as a "super safe asset" ([03:03]).

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Senate Approves Significant Cuts to Public Media Funding

The Senate's recent approval of over $1.1 billion in cuts to federal funds for public media marks a substantial threat to local broadcasters, although major national programs may weather the storm.

Impact on National vs. Local Media: While programs like Sesame Street and Daniel Tiger's Neighborhood remain relatively secure—with federal funds comprising about 15% of PBS's budget and 1% for NPR—local stations are severely vulnerable. Shemitah Basu references Paula Kerger, PBS President, who expressed grave concerns:

"It's about eliminating the possibility of funding and sustainability, frankly, for many of our stations" ([07:03]).

Consequences for Local Communities: Local public broadcasters, especially in rural areas, rely heavily on federal allocations, constituting up to 70% of their funding. NPR estimates suggest that up to 18% of member stations could shut down, depriving approximately 30% of listeners nationwide of NPR programming ([07:25]).

Ripple Effects on National Networks: The funding cuts threaten the financial stability of national networks as well. Basu explains that federal funds support national programming through dues and fees from member stations, creating a domino effect. With Congress’s move, CNN reports that national networks are preparing for potential layoffs and cost-cutting measures, anticipating the repercussions by fall ([09:44]).

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Challenges in Rebuilding Los Angeles After Devastating Wildfires

Six months post the most destructive wildfires in California's history, Los Angeles faces significant hurdles in rebuilding over 16,000 homes and structures.

Administrative and Financial Obstacles: Umair Irfan of Vox outlines the primary challenges:

"Residents are now complaining... delays as far as getting permits approvals, but also other issues relating to how expensive it is and other kinds of administrative hurdles as well" ([07:10]).

Environmental Regulations: California's stringent environmental laws, particularly the California Environmental Quality Act (CEQA), have been cited as major impediments to rapid reconstruction. Despite Governor Gavin Newsom’s executive order to suspend these requirements in LA County to expedite building processes, progress remains sluggish, with less than 25% of rebuilding permits issued as of early July ([08:13]).

Insurance and Economic Strain: Additional hurdles include delayed insurance settlements and a struggling insurance industry, making securing mortgages difficult without homeowners insurance. The increased costs of materials and labor further exacerbate the situation, particularly impacting historically diverse and economically stable communities like Altadena and Pasadena. Irfan warns:

"These communities... are slowly going to start changing... skewed towards more wealthy people and less of the working class communities and the minority communities" ([09:11]).

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Additional Stories

Jeffrey Epstein Case and Political Fallout: The episode also touches on the lingering controversies surrounding Jeffrey Epstein. A CNN poll indicates significant public dissatisfaction with the government's transparency on the case. President Trump faces pressure from his base and some Republican lawmakers to provide more information, leading to internal conflicts and attacks on his critics. Furthermore, Maureen Comey’s recent firing and Trump’s baseless accusations against her father highlight the ongoing political tensions tied to the Epstein investigation.

Israel-Syria Conflict Escalation: Recent Israeli airstrikes in Syria, targeting the Defense Ministry in Damascus and regions near the presidential palace in Suwayda, represent a significant escalation. Israel claims self-defense of the Druze community, while the Syrian Foreign Ministry denounces the actions as aggressive. Secretary of State Marco Rubio has stated that measures have been agreed upon to de-escalate the situation, even as the conflict continues to claim lives ([09:44]).

Breakthrough in IVF Technology: A groundbreaking IVF procedure carried out in the UK successfully resulted in eight births using genetic material from three individuals, aiming to prevent severe mitochondrial diseases. This innovative technique, legalized a decade ago, combines the DNA of two parents with a small contribution from a third donor. One of the mothers expressed profound gratitude:

"After years of uncertainty, this treatment gave us hope and we are overwhelmed with gratitude" ([09:44]).

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Conclusion

Shemitah Basu wraps up the episode by emphasizing the interconnectedness of these issues—from political maneuvers that could destabilize economic institutions to federal funding cuts that threaten the fabric of local communities, and the humanitarian challenges in disaster-stricken areas. The episode underscores the complexity of governance and the cascading effects of policy decisions on various sectors of society.

For more in-depth coverage and additional stories, listeners are encouraged to explore the Apple News app.

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This summary encapsulates the key discussions, insights, and conclusions from the July 17, 2025 episode of Apple News Today. For full details and direct quotes, please refer to the official podcast transcript.

Transcript

[Shemitah Basu]

Good morning. It's Thursday, July 17th. I'm Shemitah Basu. This is Apple News today. On today's show, the Senate voted to approve big cuts to public media. What that could mean for small broadcasters, why it's taking so long to rebuild after the wildfires in la and Trump lashes out at his base over Epstein. But first, to Trump's latest attempt to fire Federal Reserve Chair Jerome Powell and what his ongoing efforts to do so could mean for the future of the Fed. The president spent the last 48 hours flip flopping on threats to remove Powell from his position, which triggered a brief market sell off. Trump first told GOP lawmakers Tuesday that he was considering it and asked for their opinions. Then he reversed course Wednesday, saying it was highly unlikely. Now, it's worth noting presidents have the power to appoint chairs to the Federal Reserve. In fact, it was Trump who originally appointed Powell back in his first term. But legal experts say presidents do not have the power to fire Fed chairs unless they have reasonable cause, which the Supreme Court recently underscored in a ruling this may still. For years now, dating back to his first term, Trump has made repeated threats to fire or remove Powell over interest rate decisions. All year, the Fed has held interest rates steady, citing Trump's tariff policy as a risk for inflation, which has frustrated the president, who wants to see interest rates fall. But interest rate decisions do not count as reasonable cause to fire a Fed chair. The Fed is, after all, designed to be an independent agency. So Trump, it seems, has started exploring an alternative route, trying to make the case that Powell committed fraud in renovations of the Federal Reserve's headquarters in D.C.

[Neil Irwin]

It'S a very expensive project, $2.5 billion over budget.

[Shemitah Basu]

Neil Irwin, chief economic correspondent with Axios, told us about it.

[Neil Irwin]

This has kind of come out of nowhere. I mean, the fact that their cost overrun has been known for years. It really does look like this is an excuse to go after Powell for something other than just, oh, you got to cut interest rates tomorrow to try and establish some predicate, some legal way that they can fire Powell before his term's up, which is only 10 months from now.

[Shemitah Basu]

The Fed disputes any wrongdoing and says the cost of the renovation project increased due to changes with the original design, more exp. Expensive labor and materials, and unforeseen expenses like needing to mitigate asbestos. And legal experts told Barron's they don't think a higher than expected price tag for the project qualifies as grounds for removing Powell under the Federal Reserve Act. The Fed has control over its buildings. Powell has asked the Fed's inspector general to review the renovation project. Ultimately, Irwin told us, this all really seems to be about the administration testing out ways to assert more authority over the Fed, which is supposed to operate entirely free from political pressure.

[Neil Irwin]

That's clearly what Trump wants. He wants the Fed chair to snap to when he says it's time to cut rates. And if we enter that world, all bets are off on what the future looks like for all kinds of US Financial assets, borrowing costs, and the dollar. Think about it this way. If you're going to lend the U.S. government money, if you're going to buy a U.S. treasury bond, you're betting on inflation staying low, you're betting on kind of stability, and that this is a very safe asset. And part of the way that reputation for US Treasuries as a super safe asset was established is by having this independent central bank.

[Shemitah Basu]

Now to Congress, where public broadcasters like PBS and NPR were dealt a huge blow after the Senate passed a bill that will cut over $1.1 billion in previously allocated federal funds for public media. It passed after an extended voting session that started on Wednesday afternoon and stretched into the early hours of this morning. The package now goes back to the House for a final vote, where lawmakers are expected to approve it and send it to President Trump's desk. Now what does this mean for popular public TV programs like Sesame street or Daniel Tiger's neighborhood? They will probably be okay for PBS, federal funds make up about 15% of their budget, and at NPR, about 1% of its annual budget comes from the federal government. But local public broadcasting stations, particularly those in rural communities, are especially vulnerable. That's because about 70% of the money Congress allocates for public media goes directly to local radio and TV stations. PBS President Paula Kerger told Scripps News how cuts would threaten their network. For a significant number of stations, it represents as much as half of their funding. And so this is why we are so focused on trying to make the case that if these cuts go through, it's about eliminating the possibility of funding and sustainability, frankly, for many of our stations. PBS has more than 330 member stations. In many communities. They are the only media organization and the only ones that are focused on their communities and ensuring that people have all the resources that they need in emergencies. Public radio is often the only source of information for things like weather updates, road closures, and where to find support in the aftermath of a disaster. NPR CEO Catherine Marr recently spoke about this with cnn. Broadband service is not universal and heck, even cell phone service is not universal. There's a real understanding of the need there, as well as for emergency alerting, in which public media plays an extraordinarily important role. Across its network of member stations, NPR estimates up to 18% of them would be forced to close, meaning about 30% of listeners nationwide would lose access to NPR programming. That's according to an internal report from 2011 obtained by the New York Times. And the future of these local stations has a direct impact on the national networks. The way the public media system works, federal funding that goes to local stations trickles back up to the national networks through things like dues and fees from member stations. Local stations pay for the rights to air shows distributed by PBS and npr, and that helps support national programming. It's how popular shows like NPR's Morning Edition and PBS NewsHour are funded. For example. As Congress has been debating the rescission bill, CNN reports national networks have been bracing for this domino effect. Some public media executives are reportedly already planning layoffs and other cost cutting moves. If the rescission is approved, states would start to feel the impacts as soon as this fall. Let's turn now to Los Angeles, where six months after some of the most destructive and costly fires in state history, the county is struggling to rebuild more than 16,000 homes and other buildings that were lost.

[Umair Irfan]

So there's an intense need to rebuild and trying to get people back home, but the process has been pretty slow.

[Shemitah Basu]

That's Umair Irfan, a correspondent at Vox, who reported on the various stumbling blocks facing people who have lost homes in California.

[Umair Irfan]

A lot of residents are now complaining that basically as they're trying to rebuild, they've had delays as far as getting permits approvals, but also other issues relating to how expensive it is and other kinds of administrative hurdles as well.

[Shemitah Basu]

California has for decades required state and local governments to look for any potential environmental harms that could come from a new construction project. One particularly impactful law has been the California Environmental Quality act, which was signed into law in 1970 by then Governor Ronald Reagan, but has since become a bit of a flashpoint for people who have been eager to address the housing crisis in the state.

[Umair Irfan]

For the most part, it was a very well intentioned law, but over the years a lot of people have said that it's being used and kind of weaponized to prevent all kinds of development, that basically any new kinds of housing.

[Shemitah Basu]

Governor Gavin Newsom recently signed an executive order suspending the requirements for LA county in an effort to expedite rebuilding. He also signed other legislation attempting to lessen the requirements statewide. But even with these relaxed rules, the LA Times reported that less than a quarter of people who had applied for rebuilding permits as of early this month had received them. There are other insurance related challenges too.

[Umair Irfan]

A lot of folks are finding that they aren't getting the settlement claims that they were hoping in the same size, and so that's led to a little bit of litigation as well. And then on top of that, the insurance industry in California has been struggling and so you can't get a mortgage, for instance, unless you have homeowners insurance.

[Shemitah Basu]

If that's not enough, some homeowners might find that material and labor costs are much higher now than they were when their home was initially built. Irfan said that all of this is specifically concerning for areas like Altadena and Pasadena, where many black homeowners accrued generational wealth through their properties.

[Umair Irfan]

These communities that were once held together for a very long time, that were very diverse, are slowly going to start changing in the wake of these fires and they may not go back to exactly the way they were and with so much cost that goes into rebuilding. It just means that very likely we'll see that skewed towards more wealthy people and less of the working class communities and the minority communities that were initially there to begin with.

[Shemitah Basu]

Before we let you go, a few other stories we're following. President Trump might be ready to move on from the Jeffrey Epstein case, but many of his supporters are not, including some in Washington. According to a CNN poll released Tuesday, half of Americans are dissatisfied with the amount of information the federal government has released on this case. And several Republican lawmakers, most notably House Speaker Mike Johnson, have called on Trump in recent days to be more transparent about the government's investigation, which the Justice Department closed earlier this month. Trump, in return, has been attacking his Republican critics in Congress, calling them stupid and foolish, and he's now trying to blame Democrats for the conspiracy theories still swirling around Epstein's case. That's despite the fact that for years Trump and some of his Republican allies promised voters the Epstein files would be released and fueled theories about what they contained. Meanwhile, Maureen Comey, daughter of James Comey, was fired on Wednesday without explanation. She was a prosecutor for the cases against Epstein and his associate Ghislaine Maxwell. And yesterday Trump named without evidence her father as someone who made up files related to Epstein's crimes to the Middle east, where Israel has bombed Syria, hitting the Defense Ministry in Damascus and areas near the presidential palace. Israel says it was defending the Druze community, an Arab minority with close historical ties to Israelis, against attacking government forces. The strikes were a major escalation against the new Syrian government, which Trump has recently embraced. Israel said it would intensify attacks if Syrian forces did not withdraw from Suwayda, a strategically important province near Israel. More than 250 people are reported to have been killed in the region in recent clashes between warring tribes. The Syrian Foreign Ministry accused Israel of treacherous aggression, but Secretary of State Marco Rubio posted last night that they had, quote, agreed on specific steps that will bring this troubling and horrifying situation to an end. And finally, eight babies have been born using the genetic material of three people in a groundbreaking IVF procedure designed to prevent the children from inheriting high risk and life threatening mitochondrial diseases. It was carried out in the UK for the first time 10 years after it was made legal. Most of the DNA comes from the two parents, but a tiny amount, about 0.1%, comes from a third person who contributes healthy mitochondria, part of the human cell. One of the new mothers said that after years of uncertainty, this treatment gave us hope and we are overwhelmed with gratitude. You can find all these stories and more in the Apple News app. And if you're already listening in the News app right now, we've got a narrated article coming up next from Texas Monthly, A senior editor shared his family's experience living through the devastating Texas floods when a couple torrent of flood water quite literally tore their home and family apart. If you're listening in the podcast app, follow Apple News Narrated to find that story and I'll be back with the news tomorrow.