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      Trump Plans to Expand Presidential Power Over Agencies in 2025

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      Donald J. Trump and his allies are planning a sweeping expansion of presidential power over the machinery of government if voters return him to the White House in 2025, reshaping the structure of the executive branch to concentrate far greater authority directly in his hands.Their plans to centralize more power in the Oval Office stretch far beyond the former president’s recent remarks that he would order a criminal investigation into his political rival, President Biden, signaling his intent to end the post-Watergate norm of Justice Department independence from White House political control.Mr. Trump and his associates have a broader goal: to alter the balance of power by increasing the president’s authority over every part of the federal government that now operates, by either law or tradition, with any measure of independence from political interference by the White House, according to a review of his campaign policy proposals and interviews with people close to him.Mr. Trump intends to bring independent agencies — like the Federal Communications Commission, which makes and enforces rules for television and internet companies, and the Federal Trade Commission, which enforces various antitrust and other consumer protection rules against businesses — under direct presidential control.He wants to revive the practice of “impounding” funds, refusing to spend money Congress has appropriated for programs a president doesn’t like — a tactic that lawmakers banned under President Richard Nixon.He intends to strip employment protections from tens of thousands of career civil servants, making it easier to replace them if they are deemed obstacles to his agenda. And he plans to scour the intelligence agencies, the State Department and the defense bureaucracies to remove officials he has vilified as “the sick political class that hates our country.”Mr. Trump and his advisers are openly discussing their plans to reshape the federal government if he wins the election in 2024.Anna Moneymaker for The New York Times“The president’s plan should be to fundamentally reorient the federal government in a way that hasn’t been done since F.D.R.’s New Deal,” said John McEntee, a former White House personnel chief who began Mr. Trump’s systematic attempt to sweep out officials deemed to be disloyal in 2020 and who is now involved in mapping out the new approach.“Our current executive branch,” Mr. McEntee added, “was conceived of by liberals for the purpose of promulgating liberal policies. There is no way to make the existing structure function in a conservative manner. It’s not enough to get the personnel right. What’s necessary is a complete system overhaul.”Mr. Trump and his advisers are making no secret of their intentions — proclaiming them in rallies and on his campaign website, describing them in white papers and openly discussing them.“What we’re trying to do is identify the pockets of independence and seize them,” said Russell T. Vought, who ran the Office of Management and Budget in the Trump White House and now runs a policy organization, the Center for Renewing America.The strategy in talking openly about such “paradigm-shifting ideas” before the election, Mr. Vought said, is to “plant a flag” — both to shift the debate and to later be able to claim a mandate. He said he was delighted to see few of Mr. Trump’s Republican primary rivals defend the norm of Justice Department independence after the former president openly attacked it.Steven Cheung, a spokesman for Mr. Trump’s campaign, said in a statement that the former president has “laid out a bold and transparent agenda for his second term, something no other candidate has done.” He added, “Voters will know exactly how President Trump will supercharge the economy, bring down inflation, secure the border, protect communities and eradicate the deep state that works against Americans once and for all.”The agenda being pursued by Mr. Trump and his associates has deep roots in a longstanding effort by conservative legal thinkers to undercut the so-called administrative state.Doug Mills/The New York TimesThe two driving forces of this effort to reshape the executive branch are Mr. Trump’s own campaign policy shop and a well-funded network of conservative groups, many of which are populated by former senior Trump administration officials who would most likely play key roles in any second term.Mr. Vought and Mr. McEntee are involved in Project 2025, a $22 million presidential transition operation that is preparing policies, personnel lists and transition plans to recommend to any Republican who may win the 2024 election. The transition project, the scale of which is unprecedented in conservative politics, is led by the Heritage Foundation, a think tank that has shaped the personnel and policies of Republican administrations since the Reagan presidency.That work at Heritage dovetails with plans on the Trump campaign website to expand presidential power that were drafted primarily by two of Mr. Trump’s advisers, Vincent Haley and Ross Worthington, with input from other advisers, including Stephen Miller, the architect of the former president’s hard-line immigration agenda.Some elements of the plans had been floated when Mr. Trump was in office but were impeded by internal concerns that they would be unworkable and could lead to setbacks. And for some veterans of Mr. Trump’s turbulent White House who came to question his fitness for leadership, the prospect of removing guardrails and centralizing even greater power over government directly in his hands sounded like a recipe for mayhem.“It would be chaotic,” said John F. Kelly, Mr. Trump’s second White House chief of staff. “It just simply would be chaotic, because he’d continually be trying to exceed his authority but the sycophants would go along with it. It would be a nonstop gunfight with the Congress and the courts.”The agenda being pursued has deep roots in the decades-long effort by conservative legal thinkers to undercut what has become known as the administrative state — agencies that enact regulations aimed at keeping the air and water clean and food, drugs and consumer products safe, but that cut into business profits.Its legal underpinning is a maximalist version of the so-called unitary executive theory.The legal theory rejects the idea that the government is composed of three separate branches with overlapping powers to check and balance each other. Instead, the theory’s adherents argue that Article 2 of the Constitution gives the president complete control of the executive branch, so Congress cannot empower agency heads to make decisions or restrict the president’s ability to fire them. Reagan administration lawyers developed the theory as they sought to advance a deregulatory agenda.Mr. Trump and his allies have been laying out an expansive vision of power for a potential second term.Christopher Lee for The New York Times“The notion of independent federal agencies or federal employees who don’t answer to the president violates the very foundation of our democratic republic,” said Kevin D. Roberts, the president of the Heritage Foundation, adding that the contributors to Project 2025 are committed to “dismantling this rogue administrative state.”Personal power has always been a driving force for Mr. Trump. He often gestures toward it in a more simplistic manner, such as in 2019, when he declared to a cheering crowd, “I have an Article 2, where I have the right to do whatever I want as president.”Mr. Trump made the remark in reference to his claimed ability to directly fire Robert S. Mueller III, the special counsel in the Russia inquiry, which primed his hostility toward law enforcement and intelligence agencies. He also tried to get a subordinate to have Mr. Mueller ousted, but was defied.Early in Mr. Trump’s presidency, his chief strategist, Stephen K. Bannon, promised a “deconstruction of the administrative state.” But Mr. Trump installed people in other key roles who ended up telling him that more radical ideas were unworkable or illegal. In the final year of his presidency, he told aides he was fed up with being constrained by subordinates.Now, Mr. Trump is laying out a far more expansive vision of power in any second term. And, in contrast with his disorganized transition after his surprise 2016 victory, he now benefits from a well-funded policymaking infrastructure, led by former officials who did not break with him after his attempts to overturn the 2020 election and the Jan. 6, 2021, attack on the Capitol.One idea the people around Mr. Trump have developed centers on bringing independent agencies under his thumb.Congress created these specialized technocratic agencies inside the executive branch and delegated to them some of its power to make rules for society. But it did so on the condition that it was not simply handing off that power to presidents to wield like kings — putting commissioners atop them whom presidents appoint but generally cannot fire before their terms end, while using its control of their budgets to keep them partly accountable to lawmakers as well. (Agency actions are also subject to court review.)Presidents of both parties have chafed at the agencies’ independence. President Franklin D. Roosevelt, whose New Deal created many of them, endorsed a proposal in 1937 to fold them all into cabinet departments under his control, but Congress did not enact it.Later presidents sought to impose greater control over nonindependent agencies Congress created, like the Environmental Protection Agency, which is run by an administrator whom a president can remove at will. For example, President Ronald Reagan issued executive orders requiring nonindependent agencies to submit proposed regulations to the White House for review. But overall, presidents have largely left the independent agencies alone.Mr. Trump’s allies are preparing to change that, drafting an executive order requiring independent agencies to submit actions to the White House for review. Mr. Trump endorsed the idea on his campaign website, vowing to bring them “under presidential authority.”Such an order was drafted in Mr. Trump’s first term — and blessed by the Justice Department — but never issued amid internal concerns. Some of the concerns were over how to carry out reviews for agencies that are headed by multiple commissioners and subject to administrative procedures and open-meetings laws, as well as over how the market would react if the order chipped away at the Federal Reserve’s independence, people familiar with the matter said.The former president views the civil service as a den of “deep staters” who were trying to thwart him at every turn in the White House.John Tully for The New York TimesThe Federal Reserve was ultimately exempted in the draft executive order, but Mr. Trump did not sign it before his presidency ended. If Mr. Trump and his allies get another shot at power, the independence of the Federal Reserve — an institution Mr. Trump publicly railed at as president — could be up for debate. Notably, the Trump campaign website’s discussion of bringing independent agencies under presidential control is silent on whether that includes the Fed.Asked whether presidents should be able to order interest rates lowered before elections, even if experts think that would hurt the long-term health of the economy, Mr. Vought said that would have to be worked out with Congress. But “at the bare minimum,” he said, the Federal Reserve’s regulatory functions should be subject to White House review.“It’s very hard to square the Fed’s independence with the Constitution,” Mr. Vought said.Other former Trump administration officials involved in the planning said there would also probably be a legal challenge to the limits on a president’s power to fire heads of independent agencies. Mr. Trump could remove an agency head, teeing up the question for the Supreme Court.The Supreme Court in 1935 and 1988 upheld the power of Congress to shield some executive branch officials from being fired without cause. But after justices appointed by Republicans since Reagan took control, it has started to erode those precedents.Peter L. Strauss, professor emeritus of law at Columbia University and a critic of the strong version of the unitary executive theory, argued that it is constitutional and desirable for Congress, in creating and empowering an agency to perform some task, to also include some checks on the president’s control over officials “because we don’t want autocracy” and to prevent abuses.“The regrettable fact is that the judiciary at the moment seems inclined to recognize that the president does have this kind of authority,” he said. “They are clawing away agency independence in ways that I find quite unfortunate and disrespectful of congressional choice.”Mr. Trump has also vowed to impound funds, or refuse to spend money appropriated by Congress. After Nixon used the practice to aggressively block agency spending he was opposed to, on water pollution control, housing construction and other issues, Congress banned the tactic.On his campaign website, Mr. Trump declared that presidents have a constitutional right to impound funds and said he would restore the practice — though he acknowledged it could result in a legal battle.Mr. Trump and his allies also want to transform the civil service — government employees who are supposed to be nonpartisan professionals and experts with protections against being fired for political reasons.The former president views the civil service as a den of “deep staters” who were trying to thwart him at every turn, including by raising legal or pragmatic objections to his immigration policies, among many other examples. Toward the end of his term, his aides drafted an executive order, “Creating Schedule F in the Excepted Service,” that removed employment protections from career officials whose jobs were deemed linked to policymaking.Mr. Trump signed the order, which became known as Schedule F, near the end of his presidency, but President Biden rescinded it. Mr. Trump has vowed to immediately reinstitute it in a second term.Critics say he could use it for a partisan purge. But James Sherk, a former Trump administration official who came up with the idea and now works at the America First Policy Institute — a think tank stocked heavily with former Trump officials — argued it would only be used against poor performers and people who actively impeded the elected president’s agenda.“Schedule F expressly forbids hiring or firing based on political loyalty,” Mr. Sherk said. “Schedule F employees would keep their jobs if they served effectively and impartially.”Mr. Trump himself has characterized his intentions rather differently — promising on his campaign website to “find and remove the radicals who have infiltrated the federal Department of Education” and listing a litany of targets at a rally last month.“We will demolish the deep state,” Mr. Trump said at the rally in Michigan. “We will expel the warmongers from our government. We will drive out the globalists. We will cast out the communists, Marxists and fascists. And we will throw off the sick political class that hates our country.” More

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      Can Bidenomics Revive Biden’s 2024 Presidential Bid?

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      The president plans to extol his economic achievements in a big campaign-style speech. But inflation and recession fears could overshadow the message.President Biden heads to Chicago tomorrow to hail his economic record.John Minchillo/Associated PressBidenomics gets a reboot President Biden plans to double down on his economic record in a big campaign-style speech on Wednesday. He will hail the country’s record job growth, along with the administration’s signature policy wins aimed at expanding manufacturing, reinvesting in aging infrastructure and reorienting the economy for a clean-energy future.Yet despite the good news, Mr. Biden hasn’t seen a big jump in his popularity, and he trails his Republican rivals, according to some polls. High inflation and recession fears are dragging down his approval ratings, and the Biden administration is rethinking its messaging to try to convince Americans they should vote for him next November.“Bidenomics” will be at the heart of the president’s message. In a memo shared with journalists this week, two top Biden advisers, Anita Dunn and Mike Donilon, use the term repeatedly to frame the president’s accomplishments. They credit Bidenomics with helping the country bounce back from the pandemic “more quickly than most experts thought possible.” But as The Times’ Michael D. Shear reports, voters appear skeptical.What is Bidenomics? The president himself joked that the messaging is a work in progress. “I don’t know what the hell that is,” he told a rally this month. “But it’s working.” The Donilon-Dunn memo tries to give the messaging around Bidenomics a reboot. They point to how, for example, the CHIPS Act, the Inflation Reduction Act and the infrastructure law are creating jobs in the high-tech, manufacturing and green sectors.The numbers behind Bidenomics look impressive. Employers have added 13 million jobs during his presidency. And the unemployment rates of Black and Hispanic Americans are at or near a historic low. The White House also averted a potentially disastrous debt-default standoff with the Republican-controlled House, a victory that largely registered as a nonevent with voters.Those successes aren’t translating into an uptick in support. According to a Pew Research Center survey, Biden’s approval ratings fell to the lowest level of his presidency this month.Mr. Biden’s reboot will compete with a contrasting message from the Fed. Hours before the president steps to the microphone in Chicago, the Fed chair Jay Powell will engage with other central bankers in a panel discussion in Portugal on a topic that’s been weighing on the markets: how further interest rate increases are probably needed to bring down stubbornly high inflation.At the same gathering in Portugal yesterday, Gita Gopinath, the International Monetary Fund’s deputy managing director, warned central banks not to ease up in their inflation fight. “Monetary policy should continue to tighten and then remain in restrictive territory until core inflation is on a clear downward path,” she said.For now, the boosterism of Bidenomics may get overshadowed a by a hawkish Fed.HERE’S WHAT’S HAPPENING Goldman Sachs plans to add an ally of David Solomon to the board. Tom Montag, who led trading at the firm before joining Bank of America as a senior executive, is set to return as a director. DealBook hears that the move is seen by some internally as a message from the board that Mr. Solomon, Goldman’s embattled C.E.O., isn’t going anywhere soon.KPMG plans to lay off 5 percent of its U.S. employees. The accounting giant, which had 39,000 workers in the United States last year, cited “economic headwinds” in announcing the move. It’s the latest sign of how a slowing economy is battering a wider array of businesses, including white-collar industries.Janet Yellen reportedly plans to travel to China next month. The Treasury secretary is arranging a meeting with her new Chinese counterpart, according to Bloomberg, in another effort to lower tensions between Washington and Beijing. But China’s premier, Li Qiang, chastised Western countries today for trying to limit ties to Chinese businesses.Could Saudi money disrupt tennis’s pay-equity goals?The WTA, the women’s pro tennis tour, will commit on Tuesday to bringing prize money for its tournaments in line with that of men’s competitions, in what’s meant to be a major step toward pay equity in the sport.But the question looms: How will Saudi Arabia greet the effort? The kingdom has poured billions into pro sports as part of a global campaign to expand its soft power, and is keen to bring its deep pockets to the ATP men’s tour, potentially aggravating the sport’s already sizable pay divide.The WTA’s effort is set to ramp up over the course of a decade, to allow the tour to raise the revenue necessary to bring its payouts in line with those of men’s competitions. (While men and women receive equal prize money for Grand Slam tournaments, the campaign is focused on the two tiers of competitions below that.)Saudi Arabia’s plans for tennis complicate the matter. As the kingdom has dug into sports like soccer and golf, its playbook has involved flooding competitions with cash to attract top-flight players. It may now do so for tennis, where it already hosts a lucrative men’s exhibition event, is bidding to host the ATP Next Gen Finals and has plans to launch a similar women’s event.But the WTA hasn’t committed to that plan — or to holding any competitions in Saudi Arabia, which only recently gave women the right to drive, and which faces criticism over its human rights record. The WTA has taken stances on human rights before, notably by suspending operations in China for 18 months over the country’s treatment of the former player Peng Shuai.Things could change, given that the WTA has held talks with Saudi officials. But it’s unclear how the kingdom’s plans for tennis will affect the effort by the women’s tour to more tightly integrate with the ATP.In other Saudi sports news, a five-page pact between the PGA Tour and Saudi-sponsored LIV Golf shows the two sides have agreed on ending their litigation — but it lacks details of their planned alliance.A new shield for pregnant workersA new federal law will go into effect on Tuesday that provides protections for pregnant workers. More than a decade in the making and passed in December with bipartisan support, the Pregnant Workers Fairness Act is meant to help close loopholes in existing rules that left millions of women subject to discrimination, The Times’s Alisha Gupta writes for DealBook.What the act requires: Companies with more than 15 employees, including hourly workers, must provide “reasonable accommodations” for pregnancy, childbirth and related medical events like fertility treatments, abortion and pregnancy loss.Left intentionally undefined, reasonable accommodations can include a stool to sit on during long shifts, a flexible schedule to accommodate morning sickness or time off to recover from childbirth complications. But companies aren’t expected to suffer “undue hardship” in their business.It’s an effort to stop pregnancy discrimination. Advocates say that the Pregnancy Discrimination Act of 1978 was riddled with ambiguity. That has had disastrous consequences for many women:Twenty-three percent of mothers have considered leaving their jobs because of a lack of accommodations or fear of discrimination, according to a poll last year by the Bipartisan Policy Center.At least a third of the more than 2,000 pregnancy discrimination complaints that the Equal Employment Opportunity Commission received last year were about companies that failed to accommodate pregnant workers.The law signals growing recognition of pregnancy discrimination’s economic toll. The Fairness Act helps ensure that women no longer have to choose between “maintaining a healthy pregnancy or a safe recovery from childbirth and a paycheck,” said Dina Bakst, the co-president of the advocacy group A Better Balance, which helped Congress draft the new law.$377 million — The medical costs associated with pickleball injuries in the United States this year, according to a new research report by UBS analysts.Remembering Jim CrownJames Crown, the billionaire financier who was a longtime board member of JPMorgan Chase and General Dynamics, died on Sunday, The Times’s Emily Flitter writes for DealBook. He was 70.The scion of a Chicago industrialist family, Mr. Crown became a major figure in business, philanthropy and political giving. He died on his birthday in Aspen, Colo., when a vehicle he was driving crashed into a barrier on a racetrack, according to the Pitkin County coroner’s office.Mr. Crown was C.E.O. of Henry Crown and Company, which managed the fortune built up by his grandfather Henry by investing in an array of real estate and corporate investments. He joined the firm after working for Salomon Brothers.Mr. Crown was also a prominent corporate director. He had served on the board of what became JPMorgan Chase since 1991: His family had owned a major stake in Chicago’s Bank One, where he was a director and helped recruit Jamie Dimon as C.E.O. In 2004, Bank One merged with J.P. Morgan.“He has been a trusted adviser to me for nearly 20 years, playing a key role in helping our company navigate numerous business and economic challenges,” Mr. Dimon wrote to employees on Monday.Mr. Crown was also the lead director of General Dynamics, the aerospace giant that bought his grandfather’s Material Service Corporation in 1959.He also played a role beyond corporate America. Mr. Crown split his time between Chicago and Aspen, where he once served as chair of the Aspen Institute, which is holding its annual Ideas Festival now. As managing director of the Aspen Skiing Company, he played a big role in the American skiing industry.Mr. Crown was also a major Democratic donor, and he attended last week’s state dinner for Prime Minister Narendra Modi of India. “Jim represented America at its best — industrious, big-hearted and always looking out for each other,” President Biden said in a statement.THE SPEED READ DealsLordstown Motors, the embattled electric truck maker, filed for bankruptcy protection and sued the electronics giant Foxconn over its failure to invest in the company. (Reuters)Group Black, a Black-owned media investment firm, is reportedly in talks to buy control of the publisher of Sports Illustrated. (WSJ)Despite companies’ concerns about universal proxy, which makes it easier for investors to vote for board candidates from different slates, the policy had a muted impact in proxy fights this year. (Kirkland & Ellis)PolicyPresident Biden announced a $42 billion initiative to expand access to high-speed internet to all American households by 2030. (CNBC)Federal efforts to help develop next-generation vaccines are running into bureaucratic hurdles that may hamper efforts to fight future pandemics. (NYT)The wife of Justice Samuel Alito leased a 160-acre plot of land in Oklahoma to an oil company, as the Supreme Court justice weighed in on cases involving the E.P.A. (The Intercept)Best of the restHow the North Sea, long one of Europe’s biggest hubs for oil and gas production, may pivot to wind power. (NYT)“Will Taylor Swift’s ‘Eras Tour’ Become the First $1 Billion Tour?” (WSJ)Richard Ravitch, the developer and public servant who helped rescue New York City from financial collapse in the 1970s, died on Sunday. He was 89. (NYT)The New York Mets may have the biggest payroll in the major leagues and a deep-pocketed owner in Steve Cohen — but that hasn’t translated into success on the field. (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Donald Trump’s Latest Indictment May Reshape the 2024 Race

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      The former president, who faces seven criminal charges for mishandling classified documents, is expected to surrender to authorities next week.“I’m an innocent man,” Donald Trump told his supporters on Thursday night.Mandel Ngan/Agence France-Presse — Getty ImagesTrump indicted: what to expect next For the second time in two months, Donald Trump will surrender to the authorities to face legal charges, dropping another bomb into the 2024 presidential race. Within minutes, he was fund-raising on the back of the news.The indictment hasn’t yet been unsealed, but some details are known. The former president and front-runner for the Republican nomination faces seven criminal charges that he mishandled classified documents from his time in the White House and obstructed the government’s efforts to reclaim them. He is expected to turn himself in to the authorities on Tuesday.Mr. Trump himself broke the news last night, a sign his inner circle had been bracing for the indictment for weeks.On his Truth Social platform, Mr. Trump called the charges “election interference at the highest level,” adding, “I’m an innocent man.” Mr. Trump’s legal troubles keep piling up. But this indictment holds greater “legal gravity and political peril,” writes The Times’s Peter Baker. It’s not just a first in American history for a former president, but also involves the nation’s secrets.Here’s a recap of the other legal matters he faces:A federal grand jury last month ordered Mr. Trump to pay $5 million to the journalist E. Jean Carroll in a civil case that he sexually abused and then defamed her; Carroll’s legal team has sued Mr. Trump again over subsequent comments he made about her.In April, the New York authorities charged Mr. Trump with falsifying business documents in connection with hush-money payments to the porn star Stormy Daniels in the run-up to the 2016 presidential election.Mr. Trump is also under investigation in Georgia for possible election tampering in the state; a decision is expected later this summer.Mr. Trump’s Republican challengers came to his defense. Gov. Ron DeSantis of Florida, his nearest rival in the polls, accused the Biden administration of weaponizing the Justice Department to take on a political rival. And Vivek Ramaswamy, the anti-woke financier, said he would pardon Mr. Trump if elected president.Mr. Trump gained in the polls the last time he was charged. It is unclear if the public will be so supportive this time. A Yahoo-YouGov poll showed nearly two-thirds of Americans view the charges of removing classified documents and obstructing the investigation as a serious criminal matter; a similar percentage feel that he should not serve as president if convicted.So far, big-money conservative donors have stayed mum on the latest charges. Many have deserted Mr. Trump after backing him in previous election cycles.HERE’S WHAT’S HAPPENING The wildfire haze is moving on from the Northeast. Cities including New York and Philadelphia have seen air conditions improve, though the noxious smoke is spreading south and west; the F.A.A. has lifted ground stops at LaGuardia and Newark airports. But scientists confirmed that the El Niño weather phenomenon has started, portending hotter temperatures through next year.China suffers from a lack of inflation. New monthly data shows that producer prices fell 4.6 percent in May, the sharpest year-on-year drop in seven years, while consumer prices rose just 0.2 percent. Though a contrast from Western countries grappling with rapid inflation, the trend suggests China’s faltering economy may soon suffer from deflation.The White House reportedly braces for the death of its student loan forgiveness program. Biden administration officials are privately worrying that the Supreme Court may strike down its proposal, which would eliminate up to $20,000 in education debt per person for millions of Americans, according to The Wall Street Journal. The White House is preparing less legally risky alternatives to help borrowers.G.M. electric vehicles will gain access to Tesla’s charging network. The move, which follows a similar announcement by Ford, will vastly expand charger accessibility for G.M. But some in the industry fear that wider adoption of Tesla’s plugs, which are now likely to become the industry standard, will give Elon Musk’s company even greater power over the E.V. market.The bull market rally is already being testedInvestors shrugged off lousy labor market data and a new round of inflation warnings to push the S&P 500 into bull market territory on Thursday. But that enthusiasm seems to be waning on Friday morning as stock futures suggest markets will open lower.The bear market lasted 248 trading days, the longest such run since 1948. Since its October low, the S&P 500 has gained 20.04 percent, just enough to tip into a bull market. The benchmark index is still roughly 10 percent away from a record high; some market observers say, therefore, that it’s premature to call this a true bull market.Investor enthusiasm for artificial intelligence has underpinned this rally. According to Deutsche Bank analysts, the FANG+ Index — a collection of big cap tech stocks, many of which are expanding into A.I. — is up nearly 80 percent since ChatGPT debuted in November.Now to the bad news … A growing number of economists believe that next week’s Consumer Price Index report will show an uptick in core inflation. That could pressure the Fed to raise interest rates further — if not next week, in July.And there are signs of economic weakness. The Labor Department on Thursday reported 261,000 new jobless claims, the highest number since October 2021.Expect a prolonged period of economic uncertainty. That was the message from Mario Draghi, the former Italian prime minister and president of the E.C.B., in a speech on Thursday at M.I.T.The economist, who once famously vowed to do “whatever it takes” to save the euro, has a bearish view of the future. He warned that industrialized economies face a “volatile cocktail” of persistent inflation, high budget deficits, high interest rates and low potential growth as central banks grapple with a climate crisis, the reshoring of supply chains and the impact of Russia’s war in Ukraine.Crypto’s protagonists lay out their casesRegulators and crypto executives are making their cases in the court of public opinion after the S.E.C. sued Binance and Coinbase, two of the sector’s biggest exchanges, this week in an intensifying crackdown on the industry.“We’ve seen this story before,” the S.E.C. chairman Gary Gensler said on Thursday at a fintech conference, likening widespread noncompliance in crypto to the era of “hucksters” and fraud a century ago. He rejected claims that digital asset businesses cannot comply with the existing rules or do not realize that they apply: “When crypto asset market participants go on Twitter or TV and say they lacked ‘fair notice’ that their conduct could be illegal, don’t believe it.”Coinbase’s boss says that new regulations are needed. Its C.E.O., Brian Armstrong, addressed the event on Wednesday, saying the rules are opaque and need to be updated. The S.E.C. case is certainly a drag on his company: Moody’s, the ratings agency, downgraded Coinbase on Thursday to negative from stable because of the charges.Binance is regrouping. The company’s American division said on Thursday that it would no longer allow customers to trade in U.S. dollars, after banks stopped working with it. At the same time, the S.E.C. says it is trying to find “alternative means” to serve legal papers to Binance and Changpeng Zhao, the company’s C.E.O., telling a federal court that it was difficult to determine where he was.Who’s judging? The S.E.C.’s case against Coinbase in New York was assigned to District Judge Jennifer Rearden. Her nomination last year angered some Democratic lawmakers because she represented Chevron as a lawyer at Gibson, Dunn & Crutcher. She’s also handling the government’s appeal of the sale of the failed crypto broker Voyager to Binance’s U.S. arm and put the deal on hold in March. Judge Amy Berman Jackson of the Federal District Court for D.C. is presiding over the Binance case, and is best known for overseeing the criminal proceedings against two Mr. Trump advisers, Paul Manafort and Roger Stone. Next week, she will hold a hearing on an S.E.C. request to freeze Binance’s assets.“I did not comprehend that ChatGPT could fabricate cases.” — Steven Schwartz, a lawyer who has practiced in New York for 30 years. He told a federal judge that he regrets using the chatbot to write a legal brief that was found to be filled with fake judicial opinions and legal citations.Buzzphrase of the week: “spatial computing” Apple unveiled its first headset for augmented/virtual/mixed reality this week, but none of those words appears in a nine-minute video on its website about the $3,500 Vision Pro goggles. Instead, the company preferred a more obscure term: “spatial computing.”Apple is trying to put its own stamp on the category. When it comes to spatial computing, “no one knows what that is — and that provides Apple the opportunity to define it,” Marcus Collins, the author of “For the Culture: The Power Behind What We Buy, What We Do and Who We Want to Be,” told DealBook.Apple has successfully done this in the past. Before the App Store, people didn’t talk about apps; they talked about “software programs.”And the iPhone and AirPods were neither the first mobile phone nor the first earbuds, but they became runaway hits (despite being priced at a premium to the competition). Jim Posner, a communications consultant who has led teams at Twitter and Google, said that the intended audience may be investors and the media rather than consumers. “They are pitching a product to people,” he said. “For the tech press, industry analysts and investors, they’re pitching a concept.”Elsewhere, Mark Zuckerberg gave his thoughts on Apple’s Vision Pro goggles. “I was really curious to see what they’d ship,” the Meta C.E.O. told employees on Thursday, “and it’s a good sign for our own development that they don’t have any magical solutions to the laws of physics that we haven’t already explored.”THE SPEED READ DealsThe agricultural commodities giant Bunge is said to be finalizing a deal to buy Viterra, a grain trader, that could value the combined firm at $30 billion. (Reuters)UBS has secured a government backstop for losses tied to its takeover of Credit Suisse, clearing the last hurdle for combining Switzerland’s top two banks. (FT)Permira is reportedly weighing a sale or public listing for Golden Goose, a footwear brand favored by Taylor Swift, at a $2.7 billion valuation. (Bloomberg)PolicyLouisiana passed a bill that would block online services — including Instagram, TikTok and Fortnite — for children under 18 without their parents’ permission. (NYT)The Supreme Court unanimously ruled against a dog-toy maker whose product closely resembles a bottle of Jack Daniels whiskey. (NYT)Best of the restSam Altman of OpenAI, Bob Iger of Disney, Jay Monahan of the PGA Tour, Rupert Murdoch of Fox and Sundar Pichai of Alphabet are all on the guest list for this year’s Allen & Company gathering in Sun Valley, Idaho. (Variety)How Taylor Swift is a godsend for Chicago’s hotel industry. (Bloomberg)“What All the Single Ladies (and Men) Say About the Economy” (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Why Ron DeSantis Is Taking Aim at the Federal Reserve

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      Florida’s governor has been blasting Jerome H. Powell, the Fed chair, while spreading misinformation about central bank digital currency.WASHINGTON — Gov. Ron DeSantis of Florida, who is preparing to take a widely anticipated leap into a 2024 presidential campaign, appears to have discovered something that populists throughout history have found to be true: Bashing the Federal Reserve is good politics.Mr. DeSantis has begun to criticize Jerome H. Powell, the Fed chair, in speeches and news conferences. He has alleged without evidence that the Biden administration is about to introduce a central bank digital currency — which neither the White House nor the politically independent Fed has decided to do — in a bid to surveil Americans and control their spending on gas. He has quoted the Fed’s Twitter posts disparagingly.His critiques echo a familiar playbook from the Trump administration. Former President Donald J. Trump often blasted the central bank during the 2016 campaign and while he was in office, as policymakers lifted interest rates and slowed economic growth. Mr. Trump at one point called Mr. Powell — his own pick for Fed chair — an “enemy,” comparing him to President Xi Jinping of China.Because the central bank is responsible for controlling inflation, it is often blamed both for periods of rapid price increases and for the economic damage it inflicts when it raises rates to bring that inflation under control. That can make it an easy political target.And populist skepticism of government control of money dates back centuries in America. The nation’s first and second attempts at creating a central bank failed partly because of such concerns. The Fed, set up in 1913, was designed as a decentralized institution with quasi-private branches dotted around the country in part to avoid concentrating too much power in one place. It has been the subject of conspiracy theories and political attacks ever since.“In many ways, it is not surprising at all,” said Sarah Binder, a political scientist at George Washington University who has studied politics and the Fed. Mr. DeSantis is placing himself to Mr. Trump’s right, she said, “and it sounds like many populist right-side critiques of the Fed, of monetary control, that we’ve heard throughout history.”Mr. Powell has stated that the Fed “would not proceed” on a digital currency “without support from Congress.”T.J. Kirkpatrick for The New York TimesWhile Mr. DeSantis’s Fed-bashing is not new, some of his remarks have strayed into misinformation, said Peter Conti-Brown, a lawyer and Fed historian at the University of Pennsylvania.“The Fed can and should take this seriously,” Mr. Conti-Brown said.While the Fed is independent of and largely insulated from the White House, it does ultimately answer to Congress. And a lack of popular support could curb the Fed’s room to maneuver: If the government decided that pursuing a digital currency was a good idea, for instance, the backlash could make it more difficult to do so.Mr. DeSantis’s tone could also offer hints about the future. Starting from the early 1990s, presidential administrations have largely respected the Fed’s independence, avoiding commenting on monetary policy. Mr. Trump upended that tradition. President Biden has returned to a hands-off approach, but the recent criticism offers an early hint that the détente may not last if a Republican wins in 2024.Mr. DeSantis has faulted Mr. Powell’s policies for failing to control inflation, recently calling the Fed chair a “complete disaster.”In Mr. Powell, the potential presidential candidate has a rare opportunity to criticize Mr. Trump and Mr. Biden simultaneously: The Fed leader was first nominated to the central bank by President Barack Obama, then made chair by Mr. Trump and renominated as chair by Mr. Biden.Mr. DeSantis has focused much of his attention on a central bank digital currency, or C.B.D.C., which would operate like electronic cash but with backing from the federal government. The Fed has been researching both the potential uses and technical feasibility of a digital currency, but has not yet decided to issue one. Mr. Powell has made clear that the Fed “would not proceed with this without support from Congress.”The digital money that Americans use today — whether they are swiping a credit card or completing a Venmo transaction — is issued by banks. Physical cash, by contrast, comes directly from the Fed. A central bank digital currency would effectively be the digital version of a dollar bill.Many people who think the Fed should seriously consider issuing a central bank digital currency suggest that it could help improve access to banking services. Some have argued that it is important to develop the technology: America’s global competitors, including China, are researching and issuing digital money, so there is a risk of falling behind.Yet critics have worried about the privacy concerns of a centralized digital dollar. And the dollar is the most important reserve currency in the world, so any technological issues with a digital offering could be catastrophic. That is why the Fed has pledged to proceed carefully — and why the idea of issuing a digital currency in America is only in its formative research stages.Though there is no plan to issue a digital currency, Mr. DeSantis on March 20 proposed state legislation to “protect Floridians from the Biden administration’s weaponization of the financial sector through a central bank digital currency.”He then warned during an April 1 speech, with no factual basis, that Democrats wanted to use a digital currency to “impose an E.S.G. agenda,” referring to environmental and social goals like curbing consumption of fossil fuels or tightening gun control.Mr. DeSantis “is heading off any attempt to control people’s behavior through centralized digital currency,” his press secretary, Bryan Griffin, said in response to a request for comment.Mr. DeSantis’s claims echo those on right-wing social media, and they are in line with the interests of important Republican donors: Many banks and cryptocurrency firms are adamantly opposed to the idea of a central bank digital currency, worried that it would take away business.Florida, in particular, has been friendly to the digital currency industry, with lawmakers passing favorable legislation.And people with stakes in cryptocurrency are among Mr. DeSantis’s top political donors. Kenneth Griffin, the billionaire hedge fund executive and crypto skeptic turned investor, gave $5 million to a political action committee that supported Mr. DeSantis’s 2022 re-election. Paul Tudor Jones, a billionaire investor who had significant shares in the now-bankrupt crypto trading platform FTX, contributed $850,000 to the group, according to campaign finance filings.Nor is it just Mr. DeSantis who is expressing opposition to the idea of a central bank digital currency: Prominent Republicans like Senator Ted Cruz of Texas and Representative Marjorie Taylor Greene of Georgia have joined in.Mr. Cruz and Representative Tom Emmer of Minnesota, the Republican whip, have introduced legislation to block the Fed from creating such a currency. Gov. Kristi Noem of South Dakota, another potential Republican presidential contender in 2024, recently vetoed a state bill that she claimed would have opened the door for a C.B.D.C.Some political figures are also incorrectly conflating a possible central bank digital currency with the central bank’s FedNow initiative, a separate effort to modernize America’s payment system to make transactions quicker and more efficient. A Fed spokesperson underlined that FedNow and the research into a possible digital currency were entirely different.Robert F. Kennedy Jr., a prominent figure in the anti-vaccine movement who recently announced his intention to run for president as a Democrat in 2024, wrongly conflated FedNow and the digital currency, claiming that it would “grease the slippery slope to financial slavery and political tyranny.”Tulsi Gabbard, a former Democratic presidential candidate and representative from Hawaii who is now independent, echoed warnings that a digital currency would undermine freedom, incorrectly stating that the government “has just begun implementing” such a currency.Incorrect statements about FedNow and digital currency have proliferated on social media, spread by influential political figures as well as conspiracy theorists.The Fed has tried to push back on the swirling misinformation.“The FedNow Service is neither a form of currency nor a step toward eliminating any form of payment, including cash,” the central bank posted on Twitter on Friday. Its six-tweet F.A.Q. made no mention of politics, but nevertheless read like a rare public rebuke from an institution that diligently avoids wading into political commentary.“The Federal Reserve has made no decision on issuing a central bank digital currency (CBDC) & would not do so without clear support from Congress and executive branch, ideally in the form of a specific authorizing law,” the Fed said — in a tweet that Mr. DeSantis quoted.“It is not merely ‘ideal’ that major changes in policy receive specific authorization from Congress,” Mr. DeSantis said in a reply.By Tuesday afternoon, the Fed had updated its F.A.Q. online to be even more explicit: The central bank “would only proceed with the issuance of a CBDC with an authorizing law.” More

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      Your Wednesday Briefing: Xi Accuses the U.S. of ‘Suppression’

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      Also, the U.S. central bank may raise interest rates higher than expected.China’s national legislature is meeting this week. Ng Han Guan/Associated PressChina accuses U.S. of ‘suppression’China’s leader, Xi Jinping, used unusually blunt language this week to criticize the U.S. and its allies for what he described as a campaign to block China’s rise. The comments reflected how Xi is bracing for more confrontation and competition with the U.S. as he prepares for an expected third term as president.“Western countries led by the United States have implemented all-around containment, encirclement and suppression of China, which has brought unprecedented severe challenges to our country’s development,” Xi said in a speech he delivered on Monday.China’s new foreign minister reinforced Xi’s comments. “The United States actually wants China not to fight back when hit or cursed, but this is impossible,” Qin Gang, said yesterday.Qin also called for the U.S. to take a less confrontational stance toward his country. “If the U.S. doesn’t step on the brakes but continues to speed up, no guardrail can stop the derailment,” he said.Context: Tensions have recently escalated over U.S. support of Taiwan and U.S. accusations that China operates a fleet of spy balloons. China’s close alignment with Russia, which the West is seeking to isolate over its war in Ukraine, has intensified concerns about a new type of cold war.Related: The Times Magazine reports on the downfall of a Chinese intelligence agent that reveals the astonishing depth of Chinese industrial espionage.“The process of getting inflation back down to 2 percent has a long way to go and is likely to be bumpy,” Jerome Powell said.Haiyun Jiang/The New York TimesAn effort to cool the U.S. economyThe American economy seems to be on stable footing — hiring remains strong, the country has its lowest unemployment rate since 1969 and consumer spending picked up at the start of the year.But for the Federal Reserve, there are risks: Higher pay means higher consumer spending, which can drive up inflation. And despite the Fed’s repeated rate raises last year, reports have suggested that inflation did not weaken as much as expected, and remained faster than expected in January.To slow its pace, Jerome Powell, the Fed chair, said the central bank was likely to raise interest rates higher than expected, and that the Fed’s fight was “very likely” to come at some cost to the labor market. He even opened the door to a faster pace of rate increases if Friday’s jobs report and other incoming data remained hot.Explanation: The Fed raises interest rates to slow consumer spending and dissuade businesses from expanding using borrowed money. As demand for products and workers cools, wage growth eases and unemployment may rise. That can further slow consumption and moderate the economy.Debt ceiling: The U.S. also faces a looming risk this summer. A top economist warned lawmakers yesterday that if House Republicans refused to join Democrats in raising the borrowing limit, seven million people could be out of work and the economy could fall into a 2008-style financial crisis. From Biden: In an essay for The Times, President Biden committed to fully funding Medicare beyond 2050 without cutting benefits, and outlined his plan.Marchers flooded the streets of Paris yesterday.Aurelien Morissard/Associated PressFrance’s fight over pensionsFor the sixth time in the past two months, unions across France went on strike, disrupting trains and flights and closing classrooms. They are trying to sway public opinion in their favor and against President Emmanuel Macron’s plan to raise the legal retirement age to 64 from 62.The unions vowed yesterday to bring France “to a standstill.” Public opinion polls have repeatedly shown that a majority of  French people oppose Macron’s proposal. He says it is necessary to balance the pension system’s finances as more baby boomers retire and live longer.Neither side has shown any sign of backing down. The unions want to start continuous, disruptive strikes, while Macron hopes to get the bill — a cornerstone of his re-election campaign — passed by the end of this month. “There is no room for negotiation anymore,” a professor said.Data: France has one of the lowest rates in Europe of pensioners at risk of poverty.THE LATEST NEWSAsia PacificThe Rohingya refugees were already some of the most dispossessed people on earth.Mahmud Hossain Opu/Associated PressA fire at a Rohingya refugee camp in Bangladesh has displaced more than 12,000 people.President Yoon Suk Yeol of South Korea will make a state visit to the U.S. next month as tensions with China and North Korea rise.Japan’s newest rocket, intended to be the county’s flagship vehicle for sending satellites into orbit, failed minutes into its first test flight.U.S. NewsThe U.S. may revive the practice of detaining migrant families who cross the border illegally, two years after shutting down the policy.Five women sued Texas over its abortion ban. They say they were denied the procedure despite grave risks.Around the WorldThe Mexican military used Pegasus to spy on Raymundo Ramos, a rights advocate in Mexico City.Marian Carrasquero for The New York TimesDocuments show that Mexico’s military illegally spied on journalists and a rights advocate who were investigating allegations that soldiers had killed innocent people.An Israeli raid in the occupied West Bank spiraled into violence that left six Palestinians dead.Britain unveiled a plan to remove most asylum seekers who cross the English Channel in small boats.The War in UkraineA pro-Ukrainian group sabotaged the Nord Stream pipelines last year, new intelligence reviewed by the U.S. suggests.Ukraine said that the Wagner private military company is running out of prisoner recruits to send to Bakhmut.A Morning ReadMeena Kotwal is a Dalit herself.Saumya Khandelwal for The New York TimesTwo years ago, the Indian journalist Meena Kotwal started a news outlet focused on Dalits, once deemed untouchable by India’s caste system, and other marginalized groups. The Mooknayak, or “the leader of the voiceless,” has a growing audience and influence, but her rising public profile has brought rape and death threats.Lives lived: Duong Tuong translated a wide range of Western literature into Vietnamese. He died at 90. SPOTLIGHT ON AFRICAAn ATM provided some of the only light in the city center of Meyerton, South Africa, last month.Ilan Godfrey for The New York TimesThe cheeky app for South Africa’s power crisisSouth Africa has declared a “state of disaster” over an electricity crisis that has caused nationwide power outages of up to 10 hours a day, and millions are turning to a smartphone app to help them navigate the blackouts.The app, known as EskomSePush, plays on the name of South Africa’s state power utility, Eskom, and some vulgar Afrikaans slang that definitely can’t be written here. Recently rebranded as just ESP, it sends out alerts 55 minutes before the power is scheduled to go off. Two South African software developers, Dan Southwood-Wells and Herman Maritz, created ESP in 2014 when scheduled power outages were beginning to be more widespread and disruptive.But over the past year, the app has taken off. Since September, there have been nearly two million downloads for a total of seven million users. Southwood-Wells and Maritz know they’re tapping into national frustration, and so they try to inject some humor into the app’s outage notices, like including an image of a braai, the South African equivalent of a barbecue, to let users know they won’t be using their stoves for several hours.“We try to make light of a dark situation,” Maritz said. — Lynsey Chutel, Briefing writer, Johannesburg.PLAY, WATCH, EATWhat to CookJohnny Miller for The New York Times. Food Stylist: Rebecca JurkevichUse store-bought puff pastry to make an easy zucchini and egg tart. What to ReadIn “The Curator,” a historical fantasy, a woman searches for answers about her brother’s death.HealthCan cannabis help you sleep?RomanceWould you date a podcast bro?Now Time to PlayPlay the Mini Crossword, and a clue: Foreboding sign (four letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. Thomas Gibbons-Neff, a former Marine who covered the Taliban takeover of Afghanistan, will cover Ukraine full-time.“The Daily” is on Gov. Ron DeSantis of Florida, a rising Republican star.I’d welcome your feedback! Please write to us at briefing@nytimes.com.Lynsey Chutel More

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      Biden Makes His Business Case in the State of the Union Address

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      The president took credit for strong job growth and his legislative agenda that’s boosted investment in infrastructure and clean energy projects.“I will make no apologies.”Pool photo by Jacquelyn Martin-Pool/Getty Images.Biden picks his battles President Biden delivered a State of the Union address to Congress on Tuesday night that was filled with dramatic moments, meant in part to jump start his 2024 re-election campaign.He also used the speech to press his economic priorities, from bolstering American manufacturing to extending his climate efforts. How far he advanced his causes, however, remains to be seen.Mr. Biden defended his record on the economy. He took credit for falling inflation and strong job growth, and listed promised benefits from his sweeping legislative agenda, including infrastructure, clean energy (even if he did acknowledge, “we’re still going to need oil and gas for a while”) and manufacturing laws that will pour trillions into the economy.He also urged Congress to back initiatives including raising a billionaires tax on the wealthy; expanding a measure in the Inflation Reduction Act that caps the cost of insulin at $35 a month; renewing the expanded child tax credit; and expanding Medicaid and affordable child care.He baited Republicans over social welfare programs. Mr. Biden accused some Republicans of threatening Social Security and Medicare, implying they wanted cuts in exchange for a deal to raise the debt ceiling. (That claim requires a bit of context.) Several lawmakers shouted in response; one, Representative Marjorie Taylor Greene of Georgia, yelled “Liar!”Mr. Biden responded that he had somehow gotten unanimity on the issue. “We all apparently agree, Social Security and Medicare is off the books now, right?” he said, leading a bipartisan round of applause for seniors.He kept up pressure on ripe political targets. Though Mr. Biden didn’t directly address the Chinese spy balloon incident, he pledged to make America more competitive and less reliant on China. “I will make no apologies that we are investing to make America strong,” he said. “Investing in American innovation — in industries that will define the future, and that China’s government is intent on dominating.”Mr. Biden also called out tech companies, demanding stricter limits on their collection of personal data, and oil giants, which he accused of raking in record profits from high energy prices instead of using their huge coffers to increase domestic production.How much cooperation Mr. Biden will get from Republicans and business is unclear. In Republicans’ rebuttal, Gov. Sarah Huckabee Sanders of Arkansas accused him of perpetrating a culture war. Corporate America was more circumspect: Suzanne Clark, the head of the U.S. Chamber of Commerce, reiterated her group’s support for the infrastructure law, but urged Biden to focus on striking more trade agreements and pulling back from what she said was overregulation.HERE’S WHAT’S HAPPENING The U.S. trade deficit balloons to $948 billion. The export-import gap jumped 12 percent in 2022, to a record, as Americans continued to spend more on imported goods than travel and entertainment. Trade data also showed growing deficits in goods with the likes of Mexico and South Korea, as manufacturers seek bases outside China.Microsoft announces A.I.-powered consumer internet tools. The tech giant promised versions of its Bing search engine and Edge browser that incorporate chatbots, drawing on a partnership with the ChatGPT creator OpenAI. Microsoft’s ambitions may be bigger: It’s reportedly planning to create software to let companies make their own ChatGPT-powered chatbots.Zoom plans to lay off 15 percent of its staff. The videoconferencing company acknowledged it had hired too many people during its pandemic boom, and needed to retrench as growth has slowed. Its C.E.O., Eric Yuan, said he plans to cut his salary for the coming fiscal year by roughly 98 percent and forgo a bonus.A former Coinbase employee pleads guilty to insider trading. Ishan Wahi, who was a product manager at the crypto exchange, had been accused of tipping his brother and a friend about tokens it planned to list, bringing about $1.5 million in illegal profit. He’s the first crypto insider to admit insider trading.Chobani’s founder urges U.S. companies to fund recovery efforts for the earthquake in Turkey and Syria. Hamdi Ulukaya, a Turkish immigrant, has partnered with the Turkish Philanthropy Funds to aid in recovery from the quake, which has a death toll above 11,000. He told DealBook that he has personally donated $2 million to the cause.Jay Powell sees a “bumpy” path ahead America’s red-hot labor market suggests that the world’s biggest economy may yet avoid recession. But this same dynamic has also thrust the Fed into a policy conundrum, with pressure for higher interest rates to tamp down inflation.In a question-and-answer session at the Economic Club of Washington on Tuesday, the Fed’s chair, Jay Powell, said he could see “the very early stages of disinflation,” but added that the easing in prices was likely to follow a “bumpy” path, particularly with hiring and wage growth proving strong.January’s jobs data surpassed the Fed’s forecasts. Mr. Powell said last Friday’s knockout nonfarm payroll report, which announced that employers added 517,000 new jobs last month, was “certainly strong — stronger than anyone I know expected.”Other data offered more encouraging signs for the U.S. economy. The Atlanta Fed’s GDPNow tracker forecasts that the U.S. will grow by 2.1 percent in the first quarter; it was predicting 0.7 percent a week ago. And even bearish economists are dialing down their gloomy expectations: “A potential recession in 2023 will likely be short and shallow,” Jeffrey Roach, the chief economist for LPL Financial, wrote to investors on Tuesday, while Goldman Sachs economists this week lowered their estimate of the likelihood of a U.S. recession to 25 percent.Investors were relieved that Mr. Powell gave no hint of a sudden shift in the Fed’s strategy. He reiterated that the central bank planned to keep raising borrowing costs to rein in consumer spending. That was enough to reassure investors that no big policy changes were coming soon: The S&P 500 rallied after his comments, snapping a two-day losing streak.A hedge fund catches meme fever Hudson Bay Capital Management has emerged as the mystery backer of Bed Bath & Beyond’s bold plan to cash in on its meme-stock cachet to raise $1 billion in emergency funds and avert bankruptcy.The hedge fund’s involvement in the deal highlights the meme-stock frenzy’s pull on big institutions. Shares in the struggling retailer, which has closed 400 stores in the past year as revenues slide, are up nearly 86 percent in the past month in extremely volatile trading that’s been largely influenced by day-traders betting on its survival. But the stock nearly halved on Tuesday, after the company announced it would sell a flood of new shares, which will dilute existing shareholders.Hudson Bay has underwritten the initial $225 million worth of shares that Bed Bath & Beyond is selling. It plans to underwrite another $800 million over time, if certain unspecified “conditions are met.” Hudson Bay also receives warrants to buy further stock at an advantageous price, which could prove lucrative if the retailer were to turn its business around.The deal with Hudson Bay came together within the past several weeks, two people familiar with the negotiations told DealBook. Late last month, JPMorgan Chase, which gave Bed Bath & Beyond a lifeline last summer by expanding its credit line, froze the retailer’s credit accounts after deeming the company in breach of the terms of its debt. As Bed Bath & Beyond raced to find cash to pay its debts, it had also been preparing for a bankruptcy — and possible liquidation — if the needed funds didn’t arrive.Whether this only buys Bed Bath & Beyond a temporary reprieve remains to be seen. “The fundamental story for Bed Bath & Beyond is so broken at this point,” said David Silverman, a retail analyst at Fitch Ratings. “I don’t know that a short-term cash infusion that could buy them a few months, a couple of quarters, is going to change their fate.” The Wedbush Securities analyst Seth Basham seconded that opinion, cutting the stock price target to zero.“U.S. hog farmers look at the pictures of those farms in China, and they just scratch their heads and say, ‘We would never dare do that.’” — Brett Stuart, founder of the research firm Global AgriTrends, is worried about disease risks from China’s high-density pig farms, which in some cases pack the animals into tower blocks.Adam Neumann opens up about his next act Since leaving WeWork, Adam Neumann has (largely) kept quiet about his future plans, including Flow, a venture that Andreessen Horowitz invested $350 million in last year. But he is finally revealing more about the start-up, via a talk he gave to an Andreessen Horowitz-organized conference in November.The main — if still vague — takeaway is that Flow owns and operates apartment buildings that aim to persuade tenants to stay longer by making them “feel” as if they’re owners rather than renters. (How is left unsaid.) Mr. Neumann used plumbing to illustrate the business advantages of this approach, according to Bloomberg:An important element of the business proposition is that renters who stay longer are more profitable, Neumann said. His theory is that people who feel a sense of ownership will stick around.The plunger factor would be an added benefit for Flow. “If you’re in an apartment building and you’re a renter and your toilet gets clogged, you call the super,” he said. “If you’re in your own apartment, and you bought it and you own it and your toilet gets clogged, you take the plunger.” That’s the difference, he said, “when feeling like you own something.”THE SPEED READ DealsApollo is reportedly in talks to buy a stake in CS First Boston, the investment bank that will be spun out of Credit Suisse. (WSJ)Carlyle is said to be in negotiations to buy Cotiviti, a health care tech company, from Veritas Capital for nearly $15 billion. (Bloomberg)Oaktree Capital and other hedge funds have snapped up Adani Group bonds in recent days, restoring investor confidence in the beleaguered Indian conglomerate. (Bloomberg)PolicyMarty Walsh, the U.S. labor secretary, reportedly will step down to lead the N.H.L. players’ union. (Daily Faceoff)Senator Josh Hawley, Republican of Missouri, said he wants to make 16 the minimum age to be allowed on social media in the U.S. (NBC News)Russia’s government is said to be pressuring the central bank to loosen fiscal policy as it enters the second year of its invasion of Ukraine. (Bloomberg)Best of the restAmerican start-ups laid off over 3,000 workers last month, up 1,700 percent from a year ago. Relatedly, Washington now has more tech vacancies than Silicon Valley. (Insider, WSJ)“The Secret Saudi Plan to Buy the World Cup.” (Politico)Voice actors say they’re increasingly being asked to sign away the rights to their voices — so they can be duplicated by A.I. (Vice)How Nestlé’s bet on a breakthrough treatment for peanut allergies went south. (Bloomberg Businessweek)LeBron James now owns the N.B.A.’s scoring record. (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Kevin McCarthy’s Business Ties Complicate His Rise to Power

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      To land the House speaker position, the California Republican will have to win over opponents who question his ties to Silicon Valley and his commitment to right wing causes.The House, divided.Michael Reynolds/EPA, via ShutterstockKevin McCarthy, Inc.Representative Kevin McCarthy, Republican of California, is still working on landing the House speaker gig after six failed attempts. It’s the first such House floor showdown in a century, and business is at the heart of his woes.Mr. McCarthy’s critics say he’s too friendly with Big Tech. The ultraconservatives who have stymied his rise to power list a number of big objections with Mr. McCarthy. They say that he isn’t sufficiently committed to right-wing causes and that he hasn’t pushed back enough against perceived anti-conservative bias on social media. Yet the would-be speaker published a policy proposal over the summer to “Stop the Bias and Check Big Tech” if Republicans took control of the House.Mr. McCarthy’s messaging has not convinced hard-line party members. His hot-and-cold ties to Silicon Valley haven’t helped his standing either. Jeff Miller, a political adviser to Mr. McCarthy, also represents Apple and Amazon, and two former staff members are now Big Tech lobbyists. Meanwhile, Mr. McCarthy has benefited from tens of thousands of dollars in donations from tech companies and executives.The Republican leader has also alienated onetime corporate allies. Lobbyists once bet big on Mr. McCarthy, but relations have soured somewhat after he embraced former President Donald Trump’s antagonistic approach to corporations with perceived ties to the left.The Chamber of Commerce endorsed 23 Democrats for the House in 2020 and 15 won. That put the speakership out of reach for Mr. McCarthy at that time and he’s reportedly been sore since. The Republican pushed for Suzanne Clark, the Chamber’s C.E.O., to be removed but the organization was unmoved, and issued a statement in support of her.Even before Mr. McCarthy’s failure this week, lobbyists were giving up on him and Washington insiders — including Paul Ryan, the former Republican House speaker now at the executive advisory firm Teneo — were telling executives to stay out of the political fray.Meanwhile, the business of the government is stuck. Until Republicans resolve their internal conflicts, the House is at a standstill. Members have not been sworn in, administrative tasks and constituent services have been delayed and legislative work is on the back burner. Mr. McCarthy and his allies held talks with the holdouts last night to find a resolution. Democrats could step in to help (members of both parties have apparently discussed it), but that doesn’t appear to be on the table right now.Mr. McCarthy has vowed to continue for as long as it takes. In 1923, it took nine ballots to elect a speaker. The House is scheduled to meet again at noon.HERE’S WHAT’S HAPPENING The Justice Department moves to seize Robinhood stock tied to Sam Bankman-Fried. Federal prosecutors argued on Wednesday that the $465 million worth of shares in the online brokerage weren’t part of the FTX bankruptcy estate. Bankman-Fried bought the shares through an investment vehicle with money borrowed from Alameda Research, FTX’s trading affiliate.Walgreens will sell abortion pills. The pharmacy giant said it would dispense mifepristone, becoming the first national chain to do so after the F.D.A. announced new rules for dispensing the drug. CVS and Rite Aid said they were still reviewing the agency’s new policy.China defends its handling of the Covid outbreak. Facing criticism from the World Health Organization and President Biden over the accuracy of its coronavirus tally, Beijing fired back on Thursday, saying the situation was “controllable.” It also plans to reopen its border with Hong Kong on Sunday after a three-year closure.The man behind the college admissions scandal is sentenced. Rick Singer, whom prosecutors accused of orchestrating a $25 million cheating scheme that involved actors, business executives, doctors and more, must serve three and a half years in prison. Singer, who had become an informant, received the longest sentence of anyone tied to the scandal.CES kicks off today. Enormous crowds are expected to return to the tech trade show in Las Vegas this year, after the pandemic clamped down on in-person attendance. Expect plenty of announcements about new televisions, smart-home gadgets, electric cars and more.The bleeding continues at Big Tech Amazon said on Wednesday that it would drastically expand its planned layoffs to a staggering 18,000 jobs as it seeks to rein in costs. Coupled with Salesforce’s plans to lay off about 8,000 employees, it’s the latest sign that tech giants are still grappling with the consequences of overhiring during the pandemic boom.Amazon’s cuts amount to around 6 percent of its corporate work force and will be focused on human resources and what the e-commerce giant calls its Stores division: its main online site, its field operations and warehouses, its physical stores and other consumer teams. (Hourly warehouse workers aren’t part of the tally.) That’s up from the roughly 10,000 the company had been weighing earlier.Salesforce is also laying off 10 percent of its employees and cutting back on office space. The move comes after a series of shake-ups at the business software giant, including the announced departures of Bret Taylor, its co-C.E.O. (reportedly after strains in his relationship with Marc Benioff, the company’s co-founder) and Stewart Butterfield, the C.E.O. of Slack, the messaging app Salesforce bought for nearly $28 billion.It’s a notable retrenchment for Salesforce, whose reputation over the past decade has become one of ever-growing ambition: The company is the largest private employer in San Francisco, and its flagship office tower is the city’s tallest.Both rounds of layoffs arose out of overexpansion. Amazon more than doubled its work force during the pandemic, to 1.5 million, as it became an indispensable seller to locked-down households. Salesforce nearly doubled its head count over the past three years, to 80,000 in October.Those hiring sprees have since run into a slowing global economy, with Amazon having warned in the fall that it could see its worst growth rate since 2001. “We hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that,” Benioff wrote in a letter to employees.Amazon and Salesforce aren’t alone: Meta recently laid off 13 percent of its work force, while Snap and Twitter have also resorted to huge job cuts. Overall, the tech industry laid off over 153,000 workers last year, according to Layoffs.fyi. Things may not get better this year, with analysts cautioning that tech companies’ customers may further clamp down on spending, potentially leading to yet more cost cuts.“The parallels with Russia and Ukraine are hard to ignore. We must not make the same mistakes with Xi Jinping that we did with Vladimir Putin.” — Anders Fogh Rasmussen, a former secretary general of NATO, urged a robust and unified response to deter China from attacking Taiwan. His comments, made during a visit to Taipei, highlighted worries in Europe over China’s growing assertiveness in Asia.The Fed’s big challenge: exuberant marketsInvestors got the post-Christmas “Santa Claus rally” they were hoping for, a buying spree that was fueled in part by slumping energy prices. But the big cloud hanging over markets remains: the prospect that central banks will be emboldened to tame inflation with more interest rate increases.Fed officials gave investors an unambiguous warning on Wednesday: Don’t start pricing in a dovish pivot anytime soon. Many on Wall Street are banking on the U.S. central bank to end its policy of jumbo rate increases in the first half of 2023, and to begin cutting by year-end.But the Fed sees any pivot prediction as misguided, warning that such thinking could complicate its efforts to bring prices under control. Minutes from a December Fed meeting released on Wednesday, did not mince its words. “No participants anticipated that it would be appropriate” to cut rates.As the Times’s Jeanna Smialek reported, policymakers are concerned that markets might misinterpret any decision to slow the pace of rate moves in the near term as a sign that the Fed believed it was making enough progress in bringing inflation closer to its 2 percent target. (The I.M.F. has also weighed in, saying that it doesn’t believe the U.S. has “turned the corner on inflation yet” and that the Fed should “stay the course.”)The markets still don’t seem to be getting the message. “Right now data signals are mixed — like an ink blot, investors can see what they want,” Elsa Lignos, RBC Capital Market’s global head of FX Strategy, said in a note to clients this morning. She pointed out that manufacturing prices were in decline, but that job vacancies remained elevated, suggesting wages could continue creeping higher.A late-afternoon surge on Wednesday helped the S&P 500 and Nasdaq close higher. Between the Dec. 27 open and Wednesday’s close, the S&P 500 rose 0.8 percent, capping off the seventh consecutive annual Santa rally, measured by the stock market’s performance over the seven trading days that follow Christmas. The most bullish on Wall Street see such rallies as a sign that investors will keep buying well into the new year.Investors and Fed officials will be closely watching Friday’s jobs report. The Fed is concerned that the labor market is still too tight, belying the recent headline-grabbing layoffs at tech giants. A jobs report showing big gains in wages and hiring could force the Fed to remain locked in to its “higher for longer” rates policy, adding to additional market volatility.THE SPEED READ DealsShares in GE HealthCare Technologies rose 8 percent in their debut on Wednesday, after being spun off from General Electric. (Bloomberg)Western Digital has reportedly resumed talks to buy Kioxia, a Japanese memory chip maker. (Bloomberg)A unit of Tokyo Gas is said to be in advanced talks to buy the U.S. natural gas producer Rockcliff Energy for about $4.6 billion. (Reuters)Fanatics reportedly plans to divest its 60 percent stake in Candy Digital, a sports N.F.T. company. (CNBC)PolicyEuropean regulators fined Meta 390 million euros after finding it had illegally forced users to effectively accept personalized ads. (NYT)The S.E.C. has objected to Binance.US’s $1 billion bid to purchase the bankrupt crypto lender Voyager Digital. (Reuters)Silvergate, a bank, was forced to sell assets at a steep loss to cover $8.1 billion in customer withdrawals after the collapse in November of FTX. (WSJ)Best of the restA self-described Tesla fan filed a Tesla trademark for a boat and jet without the company’s knowledge. (Bloomberg)Amazon, SiriusXM and Spotify are cutting back on their spending on new podcasts. (Bloomberg)The stars of the 1968 film “Romeo and Juliet” sued the movie’s distributor, Paramount, for $500 million over being made to film a nude scene while they were teens. (NYT)A Princeton student said he had created a program to detect whether an essay was written by the A.I. chatbot ChatGPT. Meanwhile, New York City’s education department banned the use of ChatGPT on some city devices and internet networks. (Insider, Chalkbeat New York)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      FTX Founder Sam Bankman-Fried’s “House of Cards” Teeters

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      Now under arrest, the fallen crypto mogul faces a barrage of charges, including defrauding investors out of billions.Sam Bankman-Fried faces multiple charges, including defrauding investors.Saul Loeb/Agence France-Presse — Getty ImagesS.B.F. in custody The spectacular rise and fall of Sam Bankman-Fried, the founder of the failed crypto exchange FTX, came full circle on Monday, with his arrest in the Bahamas at the request of U.S. authorities, followed by the S.E.C. filing its own charges on Tuesday.The Times reports that federal prosecutors in Manhattan, who are seeking his extradition, will charge Mr. Bankman-Fried with wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering. A trial could start late next year.“Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” Gary Gensler, the S.E.C.’s chair, said in a statement. His agency has charged S.B.F., as the entrepreneur is known, with defrauding investors in FTX out of $1.8 billion, including $1.1 billion from U.S. entities. A big part of the fraud, it alleges, was keeping backers in the dark about “the undisclosed diversion of FTX customers’ funds” to the exchange’s trading affiliate, Alameda Research.The S.E.C. now asserts that S.B.F. was more involved in Alameda’s operations than he let on. In a major revelation, the agency says he directed $8 billion worth of customer deposits from an Alameda-controlled bank into a separate account, labeled “fiat @ftx.com,” in part to avoid getting charged interest, a move that could suggest intent. From the complaint:“In 2022, FTX began trying to separate Alameda’s portion of the liability in the “fiat @ftx.com” account from the portion that was attributable to FTX (i.e., to separate out customer deposits sent to Alameda-controlled bank accounts from deposits sent to FTX-controlled bank accounts). Alameda’s portion — which amounted to more than $8 billion in FTX customer assets that had been deposited into Alameda-controlled bank accounts — was initially moved to a different account in the FTX database. However, because this change caused FTX’s internal systems to automatically charge Alameda interest on the more than $8 billion liability, Bankman-Fried directed that the Alameda liability be moved to an account that would not be charged interest.”The arrest took many by surprise. S.B.F. had been scheduled to testify on Tuesday before the House Financial Services Committee. The committee’s Democratic chair, Representative Maxine Waters of California, didn’t see this coming: “The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity,” she said. (S.B.F. himself also said he did not expect to be arrested.)“I have never seen a case approaching this scope proceed this quickly,” Renato Mariotti, a partner at Bryan Cave Leighton Paisner and a former federal prosecutor, told DealBook. Given FTX’s scale — with more than 100 companies based around the world — and the lengthy list of creditors, lawyers and extradition experts said the government had moved faster than expected.S.B.F.’s media tour may have played a role: While most executives under criminal investigation clam up, the crypto entrepreneur has spoken out over and over again. That may have pushed prosecutors to act fast, according to Mariotti, to avoid S.B.F. “muddying the waters” of a potential case through repeated assertions that he was misguided and had made mistakes.But has S.B.F. also admitted wrongdoing? On the Unusual Whales podcast on Monday, he initially denied knowing that customer funds had moved from FTX to Alameda without permission, but then professed less certainty: “Like I, like, kind of vaguely knew, kind of, sort of maybe, um, on a qualitative level what was going on.”What could have been: News outlets including Forbes have obtained S.B.F.’s written testimony for Tuesday. It sets the ground for his claim to have simply made mistakes by professing he messed up with a profanity — which he stresses he is using “formally, under oath” — in the first sentence.HERE’S WHAT’S HAPPENING The E.U. plans to tax imports based on carbon emissions. The bloc has reached an agreement meant both to protect European products made using fewer greenhouse-gas emissions and to effectively set an international price for carbon. It would also probably irritate trading partners.China begins a W.T.O. dispute over American chip export controls. Beijing accused the United States of trade protectionism by effectively blocking tech companies from selling advanced chips to China, hampering the Chinese tech industry. At the same time, Japan and the Netherlands are in talks to join the U.S. in tightening export controls on chipmaking machinery. More on Elon Musk’s Twitter TakeoverAn Established Pattern: Firing people. Talking of bankruptcy. Telling workers to be “hard core.” Twitter isn’t the first company that witnessed Elon Musk use those tactics.Rivals Emerge: Sensing an opportunity, new start-ups and other social platforms are racing to dethrone Twitter and capitalize on the chaos of its new ownership under Mr. Musk.The ‘Twitter Files’: Mr. Musk and Matt Taibbi, an independent journalist, set off an intense debate with a release of internal Twitter documents regarding a 2020 decision to restrict posts linking to a report in the New York Post about Hunter Biden.Hard Fork: The Times podcast looks at Mr. Musk’s two-day clash with Apple, which he had accused of trying to sabotage Twitter before saying the “misunderstanding” had been resolved.Congress scrambles to avert a government shutdown. Senator Chuck Schumer of New York, the Senate majority leader, proposed a one-week spending bill to give negotiators more time for a broader government spending deal. Without that, the federal government will begin partially shutting down this weekend.The former C.E.O. of Wirecard moves to suspend his criminal fraud trial. A lawyer for Markus Braun told a Munich court that prosecutors had ignored crucial evidence and relied on an untrustworthy witness. The move is aimed at forestalling one of Germany’s biggest-ever fraud trials; the court is expected to rule on the motion in the coming weeks.U.S. researchers are set to unveil a breakthrough in nuclear fusion. Scientists at the Lawrence Livermore National Laboratory in California are expected to announce on Tuesday that they have successfully used lasers to achieve nuclear fusion whose output exceeded the input from the lasers. It’s a significant step toward making fusion a plausible energy source — someday.What FTX’s new C.E.O. will say about the exchange’s “utter failure” Even with Sam Bankman-Fried in custody, the House Financial Services Committee hearing into the collapse of FTX will go on as scheduled this morning, and its star witness will now be the exchange’s new C.E.O., John Ray III.Though Mr. Ray’s written testimony never calls FTX an outright fraud, the corporate restructuring expert will reiterate that he’s never seen “such an utter failure of corporate controls at every level of an organization.”Mr. Ray will detail eight “unacceptable management practices” that he believes led to the downfall of Bankman-Fried’s crypto empire. They include:Evidence that “customer assets from FTX.com were commingled with assets from the Alameda trading platform.”Alameda, FTX’s trading arm, being able to borrow funds held at the non-U.S. business unit, FTX.com, for its trading and investing “without any effective limits.”Shoddy recordkeeping and lax fiscal controls, including no audits and no documentation for “nearly 500 investments made with FTX Group funds and assets.”Evidence that loans and payments in excess of $1 billion were made to company insiders, and that the company went on a roughly $5 billion spending spree beginning in late 2021.Wall Street will be closely watching today’s inflation number U.S. futures have been edging higher on Tuesday and global stock markets are up ahead of a consequential Consumer Price Index report due out at 8:30 a.m. Eastern.An elevated C.P.I. would probably put the chill back into stock markets. If the inflation measure shows an annual rise above economists’ consensus estimate of a 7.3 percent, that could signal that the Fed’s interest-rate rises aren’t doing enough to slow the pace of inflation — and that more jumbo increases are needed. (Reminder: The Fed’s rate-decision day comes tomorrow.)A tepid C.P.I. could do the opposite. JPMorgan Chase traders have gamed out a few scenarios. They believe a reading of 6.9 percent would lead to a healthy rally in the S&P 500, with the benchmark index jumping 8 to 10 percent. They put the odds of such a low number at about one in 20.Central bankers and Wall Street pros have consistently forecast inflation wrong over the past year. In late 2021, many thought high inflation was a temporary phenomenon. It persisted. But then last month’s reading, which showed prices moderating, surprised many and triggered a rally in risky assets. “The inflation report is arguably the most uncertain of this week’s big macro event risks,” Alvin Tan, a foreign-exchange strategist at Royal Bank of Canada, said in an investor note on Tuesday.“The bet was that free money would last indefinitely, and there doesn’t seem to have been a risk-management game plan.” — Jon Burckett-St. Laurent, a senior portfolio manager at Exencial Wealth Advisors, on the financier Cathie Wood, who shot to prominence by investing heavily in money-losing tech companies. Wood’s flagship fund is trading at a five-year low as investors appear to have lost faith in her strategy.Twitter dissolves its trust and safety council Elon Musk has said that maintaining safety on Twitter is one of his highest priorities, and yet the social network just made a puzzling decision toward that end: On Monday night it disbanded an outside panel of experts that had advised it on matters of hate speech and safety.“Thank you,” began an email sent to members of the council — made up of civil rights groups, academics and others, formed in 2016 — an hour before they were to meet on Monday. The message said the group wasn’t “the best structure” to advise on product and policy any longer; it was signed “Twitter.”The dissolution of the board may have been inevitable, as three members had already quit last week over changes to Twitter’s content moderation. But it suggests Musk may ultimately centralize content policy in the interest of, as the email put it, “moving faster and more aggressively than ever before.”The move adds to critics’ worries that Twitter is becoming less safe. The advisers who quit last week cited the company relying more on automated content moderation: “It is clear from research evidence that, contrary to claims by Elon Musk, the safety and wellbeing of Twitter’s users are on the decline,” they wrote in their resignation statement.Meanwhile, Twitter’s former head of trust and safety, Yoel Roth, and his family reportedly went into hiding after Mr. Musk misrepresented his academic thesis about gay social networks online to falsely imply that it supported sexualizing children. (Professors who reviewed Mr. Roth’s thesis also received online abuse.)In other Elon Musk news:The Twitter account that shows the movements of Mr. Musk’s private jet has been “shadowbanned,” according to its owner.The $5.7 billion worth of Tesla shares that Mr. Musk donated to charity last year went to his personal charitable foundation.Mr. Musk has lost his crown as the world’s richest person, at least by one measure, to Bernard Arnault of LVMH.THE SPEED READ DealsThe private equity firm Thoma Bravo agreed to buy Coupa Software, which makes software to manage corporate expenses, for $8 billion, as it seeks to capitalize on declining valuations of tech companies. (FT)Speaking of which, Checkout.com, one of Europe’s biggest privately held tech companies, recently slashed its internal valuation by 72 percent, to $11 billion. (FT)Goldman Sachs reportedly plans to cut hundreds of retail banking jobs. (Bloomberg)Investors’ rush to withdraw from a big Blackstone real-estate fund may have broader fallout. (WSJ)PolicyThe Supreme Court rejected a bid by British American Tobacco to halt California’s ban on flavored tobacco products. (Bloomberg)Chinese authorities arrested 63 people whom they accused of laundering $1.7 billion with the crypto token Tether. (Insider)Hong Kong has lifted more of its bar and restaurant Covid restrictions, as China continues easing pandemic rules. (FT)Best of the restThe Wall Street Journal named Emma Tucker, the editor of London’s Sunday Times, to lead its newsroom, the first woman to hold that role. (NYT)“How Sexism Influenced Corporate Governance” (NYT)Amazon has delayed hiring college graduates to help cut costs. (FT)The back story on Taylor Swift choosing Searchlight, the art-house movie studio, over major streaming services for her debut as a feature-film director. (Puck)The hedge-fund mogul Ray Dalio and the director James Cameron are teaming up to make submarines for the ultrawealthy. (FT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More