Loading summary
Transcript22 lines
- [00:00]
Alex Osila
Truestage companies simplify the complex with 90
- [00:03]
Heather Haddon
years of delivering accessible insurance and innovative financial solutions. Let's work together and build a better tomorrow today. Learn more@truestage.com WSJ Trustage is the marketing name for Trustage Financial Group and its subsidiaries and affiliates. Corporate headquarters is located in Madison, Wisconsin.
- [00:20]
Alex Osila
President Trump announces that the US Will extend a ceasefire with Iran that was going to expire tomorrow. Plus, senators volley tough questions at Kevin Warsh, President Trump's pick for the next Fed chair, during his confirmation hearing, and why the energy shock is going to hit electricity bills in Hawaii and Alaska.
- [00:38]
Jennifer Hiller
Essentially, they are very exposed to that international price of oil. So the utilities right now that are purchasing oil are paying higher prices for it, and then that gets passed along.
- [00:50]
Alex Osila
It's Tuesday, April 21st. I'm Alex Osila for the Wall Street Journal. This is the PM edition of what's News, the top headlines and stories that move the world today. Kevin Warsh, President Trump's nominee for Federal Reserve chair, testified in front of the Senate Banking Committee today. During the two and a half hour session, senators grilled Warsh about his financial assets, as well as how he plans to preserve the independence of the Fed. For more on the hearing and what happens next, I'm joined by WSJ economics reporter Matt Grossman. Matt? Matt Senators asked Borsch a lot of different questions, but one topic that kept coming up was his relationship with President Trump. Like in this exchange between Warsh and Massachusetts Democratic Senator Elizabeth Warren in our meeting is independent because you're, quote, a tough guy. Those were your words, tough guy. And you will be able to stand up to President Trump. So let's try it again. Name one aspect of President Trump's economic agenda with which you disagree.
- [01:57]
Matt Grossman
Well, Senator, the Federal Reserve in recent years has wandered outside of its remit, wandered into other.
- [02:02]
Alex Osila
I'm asking for something that's not something Donald Trump on.
- [02:06]
Matt Grossman
If I'm confirmed, the Federal Reserve should
- [02:09]
Alex Osila
stay in its lane.
- [02:10]
Matt Grossman
The relationship between the Fed and the White House is very sensitive area right now, especially for Democrats who are skeptical that President Trump has been so outspoken about lowering interest rates over the past few years that any nominee would basically have to promise the president that that's what he'd pursue in office. Now, Warsh emphasized today that he didn't make any promises to President Trump, that President Trump never pressured him to make a commitment about lowering rates. But Democrats on the committee were really asking some very pointed questions about stuff like the president's attempt to fire Lisa Cook, who's a Fed governor. The President's continued threats to try to fire Jerome Powell, who's the current Fed chair. When those topics came up, Warsh tried to keep a very neutral view. He said that he isn't a legal expert, that he wants to see those issues play out in courts. And of course, that might not have been very satisfying to Democrats on the committee who see some of these moments as a real breach in protocol. A lot of the Republicans made it sound like supporting Kevin Warsh would be a pretty straightforward choice for them. And that's been the expectation for a while.
- [03:20]
Alex Osila
So we wrapped up the hearings today. What happens next?
- [03:23]
Matt Grossman
Jerome Powell's term ends on May 15, so the Republicans would really like to see Kevin Warsh confirmed before then. On the other hand, Thom Tillis, who's a senator from North Carolina on the Banking Committee, has said that he won't support Warsh's confirmation until the Justice Department's investigation of Jerome Powell is dropped. That's because Tillis objects to that use of the Justice Department's investigative power, not because he has any problem with Kevin Warsh. It's not exactly clear what the off ramp to that is going to be just yet. It looks pretty certain right now that there's no path forward for Warsh until there's some resolution between Tillis, who wants to see this investigation resolved, and the White House, which hasn't shown a readiness to drop it.
- [04:12]
Alex Osila
That was WSJ economics reporter Matt Grossman. Thanks so much, Matt.
- [04:15]
Matt Grossman
Thank you.
- [04:20]
Alex Osila
President Trump said today that the US Will extend its ceasefire with Iran and continue the blockade of the country's ports until its leaders present a, quote, unified proposal. The announcement on Truth Social comes a day before the two week ceasefire was scheduled to end. Iran has accused the US of perpetrating an act of war by blockading its ports. Attempts to hold negotiations are still in limbo. Iran says it hasn't yet decided whether it will send a delegation to Pakistan for peace talks. And Vice President J.D. vance had earlier paused plans to travel to Pakistan today. Meanwhile, the US Is ramping up pressure on Iran. Overnight, US Forces boarded a crude oil tanker that had previously been sanctioned by the US for working with Iran. The White House is taking action against ships linked to Iran in waters around the world, as well as blockading Iranian ports. This morning, in an interview with cnbc, Trump said he wants to make sure the threat from Iran is ended, even if it means the war doesn't wrap up quickly. I want to make a good deal. I'm not going to be rushed. I have all the time in the world. Florida Representative Sheila Sherfilis McCormick, a Democrat, is resigning from the House. She's facing allegations that she stole millions of dollars in federal funds and a House ethics committee hearing today was going to consider whether to recommend expelling her. She said she couldn't adequately defend herself in a House ethics probe because of criminal charges she's facing for conspiring to steal disaster relief funds. She's the third lawmaker to quit the House. In recent days, The Journal has learned that Hollywood power broker Casey Wasserman's talent and marketing agency has drawn interest from private equity firms and big entertainment investors. Wasserman announced in February that he was selling the firm after the Justice Department released emails between him and Jeffrey Epstein associate Ghislaine Maxwell. And we're exclusively reporting that the Gates foundation is cutting up to 500 jobs, or roughly 20% of its staff, over the next several years. The philanthropic giant has also opened an external review of engagement with Epstein. The moves were announced today in a staff email viewed by the Journal. The Gates foundation and its co founder Bill Gates have been reeling from disclosures about the Microsoft billionaires ties to Epstein. Gates has said he regretted his association with Epstein and that he didn't participate in the sex offender's crimes. Coming up, Red Lobster brings back the fan favorite deal that helped send it into bankruptcy. That's after the break.
- [06:56]
Nuveen Announcer
This message is brought to you by Nuveen. How would you invest if you knew the future was watching at Nuveen? This isn't a theoretical question. It's a perspective that comes from navigating 125 years of market cycles, using foresight to innovate and adapt to the changing needs of investors, and remaining steadfast in the pursuit of lasting performance. Nuveen Invest like the future is watching. Visit Nuveen.com future to learn more. Investing involves risk Principle Loss is possible.
- [07:31]
Alex Osila
Uncertainty over the status of Middle east peace Talks weighed on U.S. stocks today. The three major indexes each fell about 0.6% while oil prices gained in earnings. UnitedHealth reported first quarter profit of $6.48 billion and raised its annual guidance. Those results were much higher than Wall street expected and signal progress in UnitedHealth's financial turnaround. The company has replaced a ton of top executives and invested significantly in AI. Its stock closed up about 7% today and new York Attorney General Letitia James has filed lawsuits against crypto exchanges Coinbase and Gemini. The suits accused the companies of illegally allowing people under 21 to gamble, which is barred by the state. The lawsuits are notable for what they left out prediction market platforms Kalshi and polymarket. The suits are something of a trial balloon in a crowded landscape of state litigation that could ultimately reach the Supreme Court. Should New York fail to win its cases against the crypto exchanges, the Attorney General's office could still bring the cases against other prediction market operators. Polymarket has a data partnership with Dow Jones, the publisher of the Wall street journal. Sales at US retailers jumped last month, rising by 1.7%. It was the fastest one month rise in retail sales in more than three years. A sharp rise in gasoline prices drove the gain. And while oil prices and gas prices at the pump have soared because of the Iran war, a big domestic supply of natural gas has been a helpful cushion for Americans electricity costs that natural gas is the main fuel for generating power in the US and it's actually cheaper now than it was at the start of the Middle east conflict. But there are a few utilities in the US that are starting to feel higher energy costs. Hawaii's largest utility told customers to expect a jump of up to 30% in their electric bills in the coming months, while the power supplier in Fairbanks, Alaska is also telling customers to get ready to pay more. Jennifer Hiller, who covers the power industry for the Journal, says there's a reason why Hawaii and Alaska are feeling this
- [09:33]
Jennifer Hiller
first, most of the country is fairly insulated in terms of this direct fuel price for electricity, but any kind of remote area is going to use a little bit more oil and diesel for power generation. Alaska and Hawaii utilities are having to buy oil and oil is what has immediately spiked. And so those utilities are are going to immediately start paying higher prices. Hawaii doesn't use any natural gas. They would have to import it via an LNG tanker, and that's a more complicated process. And Alaska has a lot of oil and natural gas supply, but there is a pipeline issue in terms of getting enough gas from the fields to the power plants. Essentially they are very exposed to that international price of oil. So the utilities right now that are purchasing oil or paying higher prices for it and then that gets passed along. So if oil prices drop, eventually that fuel cost would drop for customers as well. But there's always a lag.
- [10:39]
Alex Osila
And finally, there's some good news for seafood fans. Red Lobster is bringing back its endless shrimp deal for the first time since the promotion contributed to the chain's 2024 bankruptcy. Red Lobster's turnaround remains a work in progress, and the company says this new version of endless shrimp will work for its business restaurants. Reporter Heather Haddon says this time the deal is returning for a limited time and with various caveats.
- [11:04]
Heather Haddon
The chain hasn't been very explicit about how limited that time is, but it will be for a constrained period of time. And it says that it's listening to its fans, that it's gotten thousands of comments from people on social media and others that they really want unlimited shrimp back. It is restricting it in certain ways. It's not for to go, it's not for delivery, it's not on holidays. But it will be providing it on a limited time basis. So in some markets it will be starting at $24.99. It will go up in other markets, but it is still a really good deal. And if you're looking for a whole lot of shrimp on the cheap, Red Lobster might be a good place for you to go right now.
- [11:47]
Alex Osila
And that's what's news for this Tuesday afternoon. Today's show is produced by Danny Lewis and Pierre Bienname with supervising producer Tali Arbel. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening. Foreign.
- [12:17]
Matt Grossman
What's driving the markets this week? What's on investors minds as they look ahead? Find out on the Markets podcast from Goldman Sachs. A breakdown of market moves and macro signals in 10 minutes or less. The Markets podcast from Goldman Sachs. Listen now.