Federal Reserve Chairman Jerome Powell appears to be planted firmly in the middle of a political sea change in Washington.
His prepared message on Tuesday was broadly unchanged since the Fed held interest rates steady last month: the economy is strong, inflation will come down eventually, the labour market is in a good place and he is happy to keep rates at their current level for now.
“We are attentive to the risks to both sides of our dual mandate, and policy is well positioned to deal with the risks and uncertainties that we face,” he told the Senate Banking committee.
But much of the attention was focused on the Fed's role as a regulator, following efforts by President Donald Trump to shut down a supervising bureau founded after the 2008 global financial crisis and Elon Musk's successful attempts at gaining access to the Treasury department's payments system.
The most recent effort involved effectively shutting down the Consumer Financial Protection Bureau (CFPB), whose purpose is to oversee financial services that US consumers use, including credits cards and mortgages. The CFPB is an independent bureau within the Fed.
In one exchange with Democratic Senator Elizabeth Warren, Mr Powell was asked who would examine banks such as Wells Fargo or JP Morgan if the CFPB was not providing the monitoring. Mr Powell responded: “I can say no other federal regulator.”
In another exchange with Democratic Senator Catherine Cortez-Masto, Mr Powell acknowledged the Fed has a role only in providing consumer protection for small banks with $10 billion or less in assets and that shutting down the CFPB would lead to a gap in regulation.
The Fed chairman also sought to ease concerns that the Treasury Department's payments system remains safe after Mr Musk and Doge gained access to the federal payments system, which controls the flow of $6 trillion annually. When asked by Senator Mike Rounds, a Republican, if the system is safe today, Mr Powell answered: “I believe it is.”
“And I will tell you, we are very strongly committed to the integrity, efficacy, resilience and all those things of this system. And you know, people do depend on this in a big way, and we're committed to that,” Mr Powell said.
He also said he does not believe Mr Musk or Doge have tried to access the Fed's data or its systems.
Tuesday's exchanges underscore the shifting political landscape Mr Powell is in as he navigates to push through new banking regulation and lower interest rates under the new Trump regime.
No stranger to operating under Mr Trump and at times becoming the target of his anger, Mr Powell declined to comment on how the new president's policies would affect the Fed's outlook.
“It's not the Fed's job to make or comment on tariff policy,” Mr Powell said in one exchange, before suggesting it would be “unwise to speculate what we really don't know” towards the second half of his testimony.
Mr Trump lashed out at Mr Powell after the Fed held rates steady last month before later rowing back on that criticism. The President previously has demanded the central bank immediately cut rates, although he has no say in the Fed's decisions.
Mr Musk at the weekend suggested the Fed should be under greater scrutiny. “All aspects of the government must be fully transparent and accountable to the people. No exceptions, including, if not especially, the Federal Reserve,” he posted on X.
Mr Trump has also previously suggested he could fire Mr Powell before again rowing back on that comment. It is unclear if he has the legal authority to do so.
For his part, the Fed Chairman's position remains resolute: the President does not have the authority to dismiss him.
But the Fed has made some decisions to operate while Mr Trump looms over it, including taking down pages on its website about diversity, equity, and inclusion (DEI) programmes, and withdrawing from the Network for Greening the Financial System (NGFS). Mr Powell has framed the former decision as in line with an executive order by the President and said the NGFS exceeded the Fed's statutory mandate.
Michael Barr, the architect of the Fed's Basel III proposals, also announced plans to step down from his position as vice chairman for supervision after Mr Trump threatened to sack him.
Mr Barr contended the President did not have the authority to do so but said a protracted legal fight could distract the Fed from its mission.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
Mohammed bin Zayed Majlis
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Oppenheimer
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UAE currency: the story behind the money in your pockets
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
The specs: 2018 Peugeot 5008
Price, base / as tested: Dh99,900 / Dh134,900
Engine: 1.6-litre turbocharged four-cylinder
Transmission: Six-speed automatic
Power: 165hp @ 6,000rpm
Torque: 240Nm @ 1,400rpm
Fuel economy, combined: 5.8L / 100km
UAE currency: the story behind the money in your pockets
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
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Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
UAE currency: the story behind the money in your pockets
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
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Mohammed bin Zayed Majlis
