WSJ What’s News: Trump Denies He’s Planning to Fire Powell
Release Date: July 16, 2025
Host: Alex Osola, The Wall Street Journal
1. President Trump Denies Plans to Fire Federal Reserve Chair Jerome Powell
In the opening segment, Alex Osola reports on President Donald Trump's denial of intentions to dismiss Federal Reserve Chair Jerome Powell. Addressing reporters at the White House, Trump asserted that he is not currently planning to remove Powell but hinted at the possibility of doing so "for cause" in the future. He criticized the Federal Reserve for allocating excessive funds toward renovating two historic office buildings.
Alex Osola [02:03]: "President Trump has for years raised the prospect of firing Powell. So far he hasn't done so. But the president has grown increasingly frustrated with Powell."
An unnamed political analyst provided insights, suggesting that while Trump has neither confirmed nor ruled out the firing, it remains unlikely unless fraud is involved in the renovation expenses. The analyst speculated potential misuse of funds in the $2.7 billion renovation project but emphasized that Powell's removal would require substantial evidence of wrongdoing.
Unnamed Political Analyst [01:23]: "I don't rule out anything, but I think it's highly unlikely unless he has to leave for fraud."
Trump also revealed that during a closed-door meeting with GOP lawmakers, several expressed support for the idea of firing Powell, although Trump characterized his stance as more conservative.
Alex Osola [02:12]: "Trump also said that during a meeting yesterday at the White House, he asked GOP lawmakers how they felt about firing the Fed chair, and several expressed support for the idea."
The potential removal of Powell has stirred market reactions, with U.S. stocks rising following the denial. However, bank stocks experienced declines amid fears that a change in Fed leadership could lead to market instability and heightened inflation risks.
2. Big Banks Report Strong Second Quarter Earnings Amid Uncertainty
The discussion shifts to the robust second-quarter earnings reported by major banks, including Goldman Sachs, JPMorgan Chase, Bank of America, Citigroup, and Morgan Stanley. Goldman Sachs, in particular, saw its profit surge by 22%, significantly surpassing analyst expectations, while revenues increased by 15%.
Anna Maria Andreotis, a senior WSJ reporter covering large banks, delves into the factors driving these impressive profits. She attributes the growth to heightened market volatility and uncertainty, particularly stemming from President Trump's tariff policies. This environment led investors to reposition their portfolios, boosting trading revenues for these institutions.
Anna Maria Andreotis [03:42]: "What's driving the profits is all the uncertainty and market volatility that has been around President Trump's tariffs."
On the investment banking front, initial tariff announcements had temporarily stalled deal-making activities, especially in the IPO market. However, as the quarter progressed, renewed confidence among company CEOs reignited deal-making efforts, contributing to the banks' strong performance.
Looking ahead, Andreotis remains cautiously optimistic. While there is enthusiasm about upcoming deals, persistent uncertainties regarding trade agreements, the impact of tariffs on economic growth, and geopolitical risks—particularly in the Middle East—pose challenges to sustained growth in investment banking.
Anna Maria Andreotis [05:13]: "Number one, there's a number of trade deals that still have to be worked out. There's also the unknowns of the impact that tariffs will have on growth, on economic growth."
In summary, the second quarter was favorable for large banks, yet the prevailing uncertainty continues to cast a shadow over future growth prospects in the investment banking sector.
3. Oracle's Stock Soars Amid AI Expansion
Shifting focus to the technology sector, Alex Osola highlights Oracle's unexpected surge in stock value, positioning it as a significant player in the artificial intelligence (AI) landscape. Despite being a 48-year-old software giant, Oracle has successfully leveraged its established cloud computing infrastructure to handle burgeoning AI workloads.
Dan Gallagher, WSJ's "Heard on the Street" columnist, provides deeper insights into Oracle's strategy and future prospects. He notes that while AI currently represents a small portion of Oracle's reported revenue, the company's foundational strengths in database software and cloud computing position it well to capitalize on AI-driven growth.
Dan Gallagher [07:41]: "It's become an AI story. And what's interesting is AI is still a relatively small part of their actual reported revenue."
Gallagher also points to a significant White House-backed data center project intended to support AI initiatives for OpenAI, indicating potential future revenue streams for Oracle. Furthermore, Oracle's recent filing revealed a $30 billion revenue-driving deal set to commence in its 2028 fiscal year, underscoring the company's ambitious growth plans.
Dan Gallagher [08:29]: "They have a lot of potential. A few weeks ago they put in a filing that they just got a deal that's going to drive around 30 billion in revenue starting in their 2028 fiscal year."
Despite the optimistic outlook, Gallagher cautions that Oracle faces intense competition from tech giants like Nvidia and must navigate the inherent risks associated with the AI sector's rapid evolution. Success hinges on Oracle’s ability to effectively implement its AI strategies and secure the necessary technological partnerships.
4. Ford Recalls 700,000 Vehicles; EU Exports to U.S. Decline Slightly
In the final segment, Alex Osola reports on Ford Motor Company's significant recall of nearly 700,000 vehicles due to defective fuel injectors that may crack and leak fuel, posing a fire risk. The affected models include certain Bronco, Sport, and Escape variants. Ford anticipates incurring approximately $570 million in costs related to the recall, as detailed in its second-quarter results. Dealers are advised to implement an interim repair by updating the engine control software at no cost to consumers.
Parallel to the recall news, Osola discusses the slight decline in European Union exports to the United States, which fell to around $54 billion in May. This marks the second consecutive month of reduced exports following a record high in March, attributed to American importers stockpiling goods in anticipation of Trump administration tariffs. Despite the recent dip, EU exports remain robust compared to the previous year, highlighting resilience amid ongoing tariff-related challenges.
Alex Osola [09:33]: "It's the second consecutive month that the EU's exports have fallen after they reached a record high in March when American importers stockpiled goods ahead of the Trump administration's impending tariff announcements."
The report concludes by emphasizing that while European exports to the U.S. have shown resilience, the enduring presence of tariffs continues to test transatlantic trade dynamics.
Conclusion
This episode of WSJ What’s News covered critical developments in U.S. politics, banking, technology, and international trade. From President Trump's fluctuating stance on Federal Reserve leadership and the robust yet uncertain earnings of major banks, to Oracle's strategic pivot into AI and significant recalls by Ford, the episode provided comprehensive insights into factors shaping the current economic and business landscape.