Trump Visits Fed HQ, Putting Pressure on Powell

Summary

WSJ What’s News – Detailed Summary

Episode: Trump Visits Fed HQ, Putting Pressure on Powell
Release Date: July 24, 2025
Host: Alex Osola
Produced by: Pierre Bienname and Michael Kosmides

---

1. President Trump Visits the Federal Reserve: Intensifying Pressure on Jerome Powell

Timestamp: [00:33 - 03:47]

In a highly unusual move, President Donald Trump visited the Federal Reserve (Fed) headquarters, signaling increased pressure on Fed Chair Jerome Powell to lower interest rates. Accompanied by Republican Senator Tim Scott, the Chairman of the Senate Banking Committee, Trump toured the ongoing renovation site of the Fed’s new headquarters. This visit marks a significant escalation in Trump's efforts to influence the Fed's monetary policy.

Key Points:

• Interest Rate Pressure: Trump has been advocating for lower interest rates to decrease government borrowing costs. His presence at the Fed headquarters underscores his commitment to this agenda.

• Renovation as Leverage: The $2.5 billion renovation project has become a focal point for Trump's critique of the Fed, questioning the management and cost of the project.

• Potential Removal of Powell: Last week, Trump hinted at the possibility of removing Powell from his position, a stance he retracted the following day unless fraud was involved.

Notable Quotes:

• Donald Trump [02:09]: “Well, I'm here just really with the chairman. He's showing us around, showing us the work... it's going to be, it's going to be a real long time because it looks like it's got a long way to go.”

• Meredith McGraw, WSJ White House Reporter [02:50]: “This is going to be very unusual and as you said, rare public pressure from the president and some of his closest advisors as they tour these Fed renovations.”

Fed's Stance: Despite Trump's direct interventions, Meredith McGraw indicates that Fed Chair Powell is expected to maintain a steady course, with the central bank likely holding interest rates steady in the upcoming meeting next week.

---

2. Market Movements and Business Highlights

Timestamp: [03:54 - 06:57]

The stock market saw mixed results with the S&P 500 and Nasdaq reaching record highs, while the Dow Jones Industrial Average dipped 0.7%, influenced by declines in IBM and UnitedHealth.

Key Business Stories:

• Intel’s Strategic Overhaul:
  Intel announced significant layoffs, cutting 15% of its workforce, and abandoned plans to invest billions in new chip facilities in Europe. The company aims to concentrate on AI chips, personal computer processors, and advanced 14A technology to compete with leaders like Nvidia and AMD. Despite flat revenue in the June quarter at $12.9 billion, exceeding Wall Street expectations, Intel struggles to keep pace with the rapid demand surge in the AI sector.

• Potential Rail Merger:
  Union Pacific and Norfolk Southern are in advanced talks for a merger that would create the largest rail operator in the United States. The proposed network would span the continent, though the deal faces stringent regulatory scrutiny.

• UnitedHealth Under Investigation:
  UnitedHealth Group disclosed it is cooperating with civil and criminal probes by the Justice Department concerning its Medicare billing practices. This follows investigative reports by the Wall Street Journal, although UnitedHealth has previously denied allegations, citing misinformation.

---

3. Intel’s Strategic Shift Amid AI Competition

Timestamp: [04:30 - 05:45]

Intel is revamping its business strategy to address declining market positions and the burgeoning AI chip market. The company is reducing its workforce by 15% and halting its investment in new European chip manufacturing facilities. Instead, Intel will focus on developing advanced AI chips and enhancing its 14A technology to regain competitiveness and market share in both consumer and enterprise segments.

Key Insights:

• Competitive Landscape: Intel lags behind competitors like Nvidia, AMD, and TSMC in the AI chip market, which has seen explosive growth driven by the AI revolution.

• Financial Performance: Intel’s June quarter revenue remained flat at $12.9 billion, surpassing expectations but highlighting the need for strategic realignment.

---

4. UnitedHealth Responds to Justice Department Probes

Timestamp: [05:00 - 06:00]

UnitedHealth Group has officially acknowledged ongoing investigations by the Justice Department into its Medicare billing practices. The company stated it is cooperating fully with both civil and criminal inquiries, maintaining confidence in its operational integrity.

Notable Quotes:

• UnitedHealth Group [05:45]: “We have full confidence in our practices and are committed to working cooperatively through the process.”

Background: The Wall Street Journal reported that the Justice Department’s criminal health care fraud unit is scrutinizing how UnitedHealth may have manipulated billing practices to increase Medicare payments, including the deployment of medical personnel to enhance diagnostic coding.

---

5. Potential Union Pacific and Norfolk Southern Merger

Timestamp: [05:30 - 06:00]

Union Pacific and Norfolk Southern are in discussions to merge, potentially forming the largest rail operator in the United States. The merged entity would create an extensive coast-to-coast rail network, a first among U.S. railroad companies. However, the merger faces significant regulatory hurdles and no assurances of approval or finalized terms.

---

6. Walmart Streamlines Its AI Strategy

Timestamp: [07:30 - 10:05]

Walmart is consolidating its extensive portfolio of AI agents to simplify user interactions and enhance efficiency. Previously, the retailer had developed numerous AI tools capable of performing various tasks, leading to a complex and confusing user experience. The new strategy involves creating four “super agents” tailored for different user groups: customers, employees, sellers and suppliers, and engineering staff.

Key Points:

• Simplification Effort: By reducing the number of AI agents, Walmart aims to provide a more streamlined and user-friendly interface, encouraging broader adoption across the company.

• Strategic Goals: Walmart’s CEO, Doug McMillan, emphasizes that AI is central to both cost savings and revenue growth. For example, AI agents designed to assist customers in shopping could drive higher sales through personalized recommendations, while internal agents can optimize supply chain and warehouse operations for greater efficiency.

Notable Quotes:

• Isabel Busquet, WSJ Enterprise Technology Reporter [07:54]: “It's rare to see a company that even has one in deployment, let alone so many that they actually have to take a step back and consolidate the interfaces. So we're definitely seeing Walmart pulling ahead here.”

• Alex Osola [09:23]: “Pretty much every company likes to use the phrase we're all in on AI, but it's rarer to see a company that's actually following through that.”

Comparison to Other Companies: While many corporations claim extensive AI integration, Walmart distinguishes itself by actual deployment and consolidation, positioning itself as a leader in practical AI application.

---

7. International Developments: Chevron in Venezuela and Thailand-Cambodia Clashes

Timestamp: [10:11 - End]

• Chevron Resumes Oil Pumping in Venezuela:
  The Trump administration has authorized Chevron to restart oil extraction operations in Venezuela. The agreement reportedly excludes royalties and taxes for the Maduro regime, although specific details remain unclear. This decision follows diplomatic engagements, including a prisoner swap that released ten Americans detained in Venezuela. The move reverses a March decision where Chevron's oil pumping license in Venezuela was revoked under the Biden administration.

• Thailand-Cambodia Border Clashes:
  Military tensions between Thailand and Cambodia have escalated dramatically, resulting in several civilian casualties. These are the most severe border conflicts between the two nations since at least 2011. Both countries accuse each other of initiating the heavy fire, heightening longstanding territorial disputes in the jungle border region.

---

Conclusion

This episode of WSJ What’s News covered a broad spectrum of pressing issues, from President Trump's direct intervention in Federal Reserve policies and significant shifts in major corporations like Intel and Walmart's AI strategies, to international geopolitical developments involving Chevron's operations in Venezuela and escalating conflicts between Thailand and Cambodia. The episode provided in-depth analysis and expert commentary, offering listeners a comprehensive overview of the factors currently shaping global business and political landscapes.

Transcript

[Sponsor Voice]

This episode is brought to you by Indeed. When your computer breaks, you don't wait for it to magically start working again. You fix the problem. So why wait to hire the people your company desperately needs? Use Indeed sponsored jobs to hire top talent fast. And even better, you only pay for results. There's no need to wait. Speed up your hiring with a $75 sponsored job credit@ Indeed.com podcast. Terms and conditions apply.

[Alex Osola]

President Trump visits the Federal Reserve headquarters, ramping up pressure on Fed Chair Powell.

[Donald Trump]

We want to get the rates down, but we also want to get the Fed building finished.

[Alex Osola]

Plus, Walmart is streamlining its approach to artificial intelligence.

[Isabel Busquet]

Pretty much every company likes to use the phrase we're all in on AI, but it's rarer to see a company that's actually following through that.

[Alex Osola]

And UnitedHealth confirms that it's responding to probes from from the justice department. It's Thursday, July 24th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. Today, President Trump visited the Federal Reserve. He joined a previously arranged tour for White House advisors of the construction site where the Fed is renovating its headquarters. The building project has become Trump's latest tool for chiseling away at the Fed, for resisting White House pressure to cut interest rates aggressively. Trump has argued in recent weeks for lower interest rates to reduce government borrowing costs. Speaking from inside the building under renovation, in a white hard hat alongside Fed Chair Jerome Powell, Trump explained the purpose of his visit.

[Donald Trump]

Well, I'm here just really with the chairman. He's showing us around, showing us the work. And so I don't want to get that. I don't want to be personal. I just would like to see it get finished. And in many ways it's too bad it started. But it did start and it's been under construction for a long time. Going to be, it's going to be a real long time because it looks like it's got a long way to go.

[Alex Osola]

Also along for the visit was Republican Senator Tim Scott, the chairman of the Senate Banking Committee. In a letter yesterday, he asked Federal Reserve Chair Jerome Powell for more detail on how the central bank's $2.5 billion headquarters renovation been managed. Last week, Trump indicated that renovation might provide grounds to take the unprecedented and legally questionable step of firing Powell. The next day, Trump said he was unlikely to attempt to remove Powell, quote, unless he has to leave for fraud. For more, I'm joined by WSJ White House reporter Meredith McGraw. Meredith, it is not very common for the president to visit the Fed. What kind of pressure does that put on Fed Chair Jerome Powell?

[Meredith McGraw]

Well, this is going to be very unusual and as you said, rare public pressure from the president and some of his closest advisors as they tour these Fed renovations. We've heard for months now President Trump complain that the Fed chair, Jerome Powell hasn't lowered interest rates. But this is the first time that he's going to actually show up at Powell's office and not only complain about the increased cost of those renovations, but really ratchet up the pressure to lower interest rates.

[Alex Osola]

The Fed kicks off its next meeting next week. Does this have the potential to change the outcome of that meeting or the decision that's made there?

[Meredith McGraw]

We've seen time and time again, Despite Trump's complaints, Powell has kept his head down and the Fed is expected to hold interest rates still steady when it meets next week.

[Alex Osola]

That was WSJ White house reporter Meredith McGraw. Thanks, Meredith.

[Meredith McGraw]

Thanks.

[Alex Osola]

Signs of trade talk progress lifted the S&P 500 to another record today. U.S. stocks were mixed. The S&P 500 and Nasdaq closed at record highs after modest moves higher of less than 0.2%. The Dow fell 0.7% as component stocks IBM and UnitedHealth dropped. In business news reporting after the Bell, intel detailed dramatic steps to revive its sagging fortunes, outlining layoffs of 15% of its workforce and scrapping plans to spend tens of billions of dollars on new chip facilities in Europe. The chip making giant said today that it would refocus its strategy on the highly competitive market for AI chips, regaining market share in personal computer processors and developing its advanced 14A technology to sell to large customers. Intel, which has long dominated the business of making chips for laptops and desktop computers, fell far behind competitors like Nvidia, Advanced Micro Devices and Taiwan Semiconductor Manufacturing Co. After it failed to anticipate the surge in demand for the powerful chips fueling the artificial intelligence boom. The company said that revenue in the June quarter was roughly flat at $12.9 billion, beating Wall street expectations. Union Pacific and Norfolk Southern say they are in advanced discussions about a potential merger which would create the largest rail operator in the country. The company said today that there were no guarantees that the discussions would result in any deal or about what the terms would be. The deal, if completed and approved, would create a sprawling rail network that spans the continent from coast to coast, something no single railroad operator's network currently does. Any deal would face serious scrutiny from a series of regulators and UnitedHealth Group said today that it was responding to requests from civil and criminal investigators at the Justice Department. The disclosure follows a series of Wall Street Journal articles in recent months detailing Justice Department investigations of the company. In a securities filing, UnitedHealth said it had contacted the Justice Department about the reports and that it has, quote, now begun complying with formal criminal and civil requests from the Justice Department. It added that it has full confidence in its practices and is committed to working cooperatively through the process. The disclosure, which didn't include the timing of the justice department request to UnitedHealth, is the first time the company has publicly confirmed the investigations. The Journal most recently reported that the Justice Department's criminal health care fraud unit is investigating the health care conglomerate's Medicare billing practices, including how the company deployed doctors and nurses to gather diagnoses that bolstered its payments. UnitedHealth previously disputed the Journal's articles on the Justice Department investigations, calling the reports misinformation and deeply irresponsible in statements published on its website. Coming up, why as many companies are trying to integrate AI, Walmart is streamlining it. That's after the break.

[Greenlight Voice]

This message is sponsored by Greenlight. With school out, summer is the perfect time to teach our kids real world money skills they'll use forever. Greenlight is a debit card and the number one family finance and safety app used by millions of families helping kids learn how to save, invest and spend wisely. Parents can send their kids money and track their spending and saving while kids build money, confidence and skills in fun ways. Start your risk free Greenlight trial [e-mail] Spotify that's greenlight.com Spotify.

[Alex Osola]

While some companies are still figuring out what to do with artificial intelligence, Walmart doesn't have that problem. In fact, the retailer has created so many AI agents that things were starting to get a little confusing for users. Now we're reporting that Walmart is consolidating those agents. Journal Enterprise Technology reporter Isabel Busquet joins me now. Isabel, what exactly is changing as far as Walmart is concerned?

[Isabel Busquet]

So Walmart has been building a lot of AI agents and AI agents refer to these AI tools that can take some type of action on behalf of a user. So they're not just answering a question for you. They're going in and they're making that milk order or they're updating your payroll information. And Walmart has built a lot of them. And a company like Walmart is huge. They have a lot of different software systems, a lot of different apps. So essentially it's taking a step back and really looking to simplify that experience. So it's going to have four, what the company calls super agents. One is for customers, one is for most of its employees, one is for sellers and suppliers of Walmart, and one is just for the engineering staff. They think that in doing that they're also going to drive greater adoption. People are going to use it more because it's simpler to use.

[Alex Osola]

How about their top line goal around using AI?

[Isabel Busquet]

Walmart is really all in on AI. The CEO Doug McMillan has talked about this. They see it as driving both bottom line savings and top line growth. You know, if there's an AI agent that is helping customers, for example, shop for a birthday party by recommending different plastic plates and cups that are on a certain theme, they think that's going to drive more sales. People are going to buy more internally. Agents can also help with a lot of efficiencies. So, you know, the folks that are managing supply chain warehouse operations, they can use agents to basically do that more efficiently and save money there.

[Alex Osola]

As you said, Walmart is really all in on AI. And I'm curious how that compares to other companies and their embrace of AI.

[Isabel Busquet]

Pretty much every company likes to use the phrase we're all in on AI, but it's rarer to see a company that's actually following through on that. Everyone is talking about agents. Agentic is definitely the tech buzzword of this year.

[Sponsor Voice]

We're.

[Isabel Busquet]

But it's rare to see a company that even has one in deployment, let alone so many that they actually have to take a step back and consolidate the interfaces. So we're definitely seeing Walmart pulling ahead here.

[Alex Osola]

That was Wall Street Journal reporter Isabel Busquet. Thanks, Isabel.

[Isabel Busquet]

Thanks again.

[Alex Osola]

We're exclusively reporting that the Trump administration has greenlit Chevron to resume pumping oil in Venezuela. That's according to people familiar with the move, who say the details of the agreement were still unclear. But it follows recent discussions involving President Trump and Secretary of State Marco Rubio, and comes amid last week's prisoner swap that released all 10 remaining Americans who were detained by the Venezuelan government. The White House didn't immediately respond to a request for comment. Under the agreement, no royalties or taxes would go to the Maduro regime, according to two people familiar with the terms, though details weren't yet clear. In March, the Trump administration revoked Chevron's Biden era license to pump oil in Venezuela. And the militaries of Thailand and Cambodia have exchanged heavy fire on their disputed border, killing several Thai civilians and injuring others in a significant escalation of long running territorial tensions between the two Southeast Asian nations. Officials from both countries blamed the other for initiating the clashes, the heaviest along the jungle border since at least 2011. And that's what's news for this Thursday afternoon. Today's show is produced by Pierre Bienname with supervising producer Michael Kosmides. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.