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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin in Washington, where President Trump has directed federal agencies to comply with job cuts led by Elon Musk and his so called Department of Government Efficiency. A White House fact sheet seen by Bloomberg shows agencies will be permitted to hire no more than one employee for every four that leave, and they'll have to limit hiring to essential positions. As heard here on Bloomberg Radio, the President spoke to reporters in the Oval Office.
I hope that the court system is going to allow us to do what we have to do we got elected to, among other things, all of this fraud abuse, all of this this horrible stuff going on, and we've already found billions of does not like a little bit, billions many billions of dough.
And standing alongside President Trump in the Oval Office was the world's richest man. Elon Musk defended his cost cutting approach, which did involve obtaining access to sensitive computer systems and employee data.
Your tax dollars need to be spent wisely on the things that matter to the people. I mean these things like it's just common sense. It's not draconian or radical. I think it's it's really just saying, best look at each of these expenditors and say, is this actually in the best interest to the people, and if it is, it's proved not, we should think about it.
Elon Musk also increased attacks on federal officials and judges, who he says are stalling progress and cost cutting, but he also says he expects resistance.
I fully expect to be scrutinized and get a daily proctology exam.
Basically, and must call for the impeachment of some officials. He says they're being corrupt and activist and.
Karen one of the world's most successful multi strategy hedge fund founders, Ken Griffin, is praising Elon musk efforts. The Citadel CEO spoke at the UBS Financial Services Conference in Miami.
This is a man who slept on the floor of his factory to make sure testls got produced. He will do what it takes to win. We want people who are in Washington who will.
Do what it takes to help the American taxpayer and the American people Win Citadel CEO Ken Griffin, though did criticize President Trump's approach to tariffs. He says the trade plans dull the country's competitive edge and breed mistrust amongst allies Nathan.
Many on the Democratic side of the aisle have not been as supportive of the administration's efforts. Massachusetts Senator Elizabeth Warren tells Bloomberg Balance of Power that Elon musk move to shut down us AID is effectively a move to shut down the government. Donald Trump, through his co president Elon Musk, is in the business of trying to shut
down the government right now and doing so illegally. Senator Elizabeth Warren also accused tru Ump and Musk of effectively sidelining the nation's financial cops by shutting down the Consumer Financial Protection Bureau. Here Senator Warren's full conversation with Bloomberg's Joe Matthew and Kayley Lines on the Bloomberg Talks podcast feed then Karen.
Senator Warren's comments come as The Wall Street Journal reports the Trump administration is looking into plans to consolidate the power of banking regulators without congressional approval. The journal says administration officials are looking into whether they can collapse the Federal Deposit Insurance Corporation the FDIC, into the Treasury Department.
The report says staff inside the FDIC and the Office of the Controller of the Currency expect to hear from the Department of Government Efficiency soon.
Meanwhile, on Capitol Hill yesterday, Nathan Senators heard from a Federal Reserve Chair Jerome Powell, who testify to the Senate Banking Committee. Powell told them he thinks the Central Bank does not need to rush to lower rates.
As the economy evolves. We will adjust our policy stamps in a manner that best promotes our maximum employment and priced ability goals. If the economy remains strong and inflation does not continue to move sustainably toward two percent, we can maintain policy restrained for longer.
Von yields climbed after Fed Chair j Powell's comments, Markets are pricing in around thirty three basis points of cuts in twenty twenty five, with the next move not expected until September. Powell will testify in the House today. Stay with Bloomberg for full coverage of his remarks starting at ten am Wall Street time on Bloomberg Radio and the Bloomberg's podcast page on YouTube.
Well ahead of all that, Karen, investors will have a key economic report to digest this morning. The Consumer Price Index, says do out at eight thirty am Wall Street Time. Let's get a preview now from Bloomberg's John Tucker. So, John, what are we expecting?
Well?
Inflation Nathan proving to be stubborn as a mule. When you strip out more vulnerable components, economists suspected jump three tenths of eight percent month over month at three point one percent on a yearly basis. Now, remember the federal reserves target is two percent. If those turn out to be the number in this morning's report, the Fed will
be in no rush to cut of indust rates. As Chairman Pale indicated, January would mark the fifth month in the last six that the core CPI has advanced three tenths of a percent. That is consistent with stalled progress and reducing inflation. The overall CPI probably will be driven by higher prices for energy and food, most notably eggs. Keep in mind, too, that a lot of companies and service providers they tend to hike prices and fees at the start of the year when consumers seem to be
more willing to absorb the extra costs. In New York, I'm John Tucker, Bloomberg Radio.
All right, John, thank you. In addition to CPI, traders continue to follow FED speak to get hints on the path of interest rates. Yesterday, New York Fed President John Williams said he expects inflation to slow toward two percent, but notes that policy related on certainty clouds the economic outlook. Williams added he'll closely watch prices to assess the impact on tariffs. Today, traders will hear from Atlanta FED President Raphael Bostik and Fedgunir Christopher Waller.
On the geopolitical front, careen, President Trump is hailing the release of American Mark Fogel. The schoolteacher had been detained in Russia since twenty twenty one. Fogel was at the White House after his release.
The super organism of people that came to my support and the love that I was given sustain me for three and a half years, and.
Mark Fogel is calling President Trump a hero. The President says the terms of Fogel's release were very fair, but he didn't go into specifics. Trump says he hopes the move will allow Russia to work toward ending the war in Ukraine well Nathan.
President Trump also backed off threats to withhold aid from Jordan after King of Dullah agreed to accept two thousand ill children from Gaza. Trump had threatened to withhold aid from Jordan and Egypt ahead of the King's visit Tuesday
should the countries not accept Palestinian refugees. President Trump reiterated plans for the US to take ownership of Gaza and for Jordan and Egypt to absorb Palestinians, which Arab states are firmly against, and Trump's warning that Israel's break and Trump's warning that Israel break it ceasefire if AMOST delays the release of hostages by Saturday.
Finally, Karen Apple has renamed the Gulf of Mexico the Gulf of America on its Apple Maps app. That follows the executive order the President Trump signed on his first day in office to change the name of the body of water. Comes after the US government updated its official map to reflect the new name as well. Alphabet's Google has made a similar update to its Google Maps, so has Microsoft's bing Maps.
Time now for look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's Michael bar Michael, good morning.
Good morning, Karen. The morning commute could be a bit tricky after more winter weinther accumulating snow will linger into this morning. For New York City and central New Jersey. The snowfall began last night north and west of the city. I barely got snow, if any, but in southern New Jersey close to a half a foot fell, where a winter storm warning was issued tonight. A new system light snow returns, changing the rain over night and could cause
some icing problems before the rain ends Thursday morning. Meanwhile, in Washington, d C. A winter's Storm warning remains in effect until seven am. Heavy snow has also been falling in mid Atlantic states. This first responder is with the fire department in the Potomac Mills area of Virginia. If you don't need to drive, you should be off the roads. One of the biggest things that I've seen is that a lot of accidents happen from people not being properly prepared.
He called it the most difficult fifteen months of his life. New York Mayor Eric Adams denied that he broke the law in his first public remarks since the Justice Department instructed Manhattan federal prosecutors to drop the corruption case he faced. Adams also says he realizes as many New Yorkers do not trust.
Him no, but I must continue to regain your trust. I have learned a lot over the last year, and this experience has been humbling many or.
Adams went on to say we can put this cruel episode behind us. President Trump's longtime confident, Steve Bannon, pleaded guilty to a fraud charge relating to duping donors who gave money to a fundraiser to build a wall along the southern border. The plea deal means Bannon avoids jail time. After yesterday's court hearing, Bannon said New York's law enforcers should be investigated.
I'm calling on right now the Attorney General Pam Bonnie to begin an immediate criminal investigation to Letitia James Alvin Bragg Oliver for what they did to President Trump.
Finally, a dog from the Working Group is named beston Show at the Westminster Kennel Club Dog.
Show for Beston's Show at the one and forty ninth annual Westminster Kennel Club Dog Show.
I choose the Giant Sall.
The Giant Snauzer from New Jersey won the award at New York's Madison Square Garden last night. Global News twenty four hours a day and whenever you won it with the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg.
Herron Monty from New Jersey. I love it. Thank you, Michael Barr. Time now for the Bloomberg Sports Update. Brownt to you. I Tri State Outie. Here's John stash Hour, John good lerning.
Thanks.
Karrent's top team in college basketball, the Auburn Tigers coming off. I lost to Florida, but still ranked number one and now twenty two and two with an eighty to sixty eight win at Vanderbilt. Saturday, Auburn visits our tribal Alabamo, who's ranked number two. Crimson tie twenty one and three, Blue Out Texas one O three to eighty. Clayton Kershaw, at age thirty six, will be back for an eighteenth season with the LA Dodgers. He had knee and toe
injuries last season, only pitched seven games. That's a Bloomberg Sports.
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President Donald Trump is moving ahead with his push to slash the size of the federal government. He assigned in executive order for agencies to work with Elon Musk and his Department of Government Efficiency and to hire no more than one person for every four who leave the federal government. Elon Musk was in the Oval Office as the President issued that directive.
The people voted for major government reform, and that's what people are going to get. They're going to get what they voted for and for more.
This morning, we are joined by Terry Haynes, the founder of Pangea Policy. It's great to speak with you this morning after we saw that rare appearance from Elon Musk defending the so called Doge effort, but at the same time saying that you know, with all the revelations that he's put online, there are going to be some mistakes that he's going to need to be corrected. Is a move fast and break things model the right approach when it comes to reigning in the federal government.
Terry, good morning, Good morning, Nathan. I think what they've concluded before the inauguration is that it's pretty much the only way. One of the older adages of Washington has never let process be the issue, and lots and lots of presidents have followed that in pursuit of bigger goals. Ronald Reagan, for example, came in in part on the expectation that from his supporters that he'd do something broadly similar to what's happening today. But they concluded that that
was going to actually break things. He didn't have the political support for it or the political environment for it with one House Democratic, and what would have you know ended up happening is he ended up focusing on big policy issues and kind of let the the machinery of Washington aside. Same thing right before nine to eleven, Don Rumsfeld wanted to end the Pentagon's a lot of waste, fraud and abuse, and the next day we had nine
to eleven and that was the end of it. But here I think they've decided this is the only way to do things, and if they end up with seventy five percent of what they propose and try to achieve that'll be a good time for them.
Is it really the only way, though, Terry. I mean, we've already seen the massive amount of lawsuits that have put up against the DOJE effort, and lots of criticism from Democrats as well when it comes to these ideas that have been thrown out of you know, shutting down certain agencies that have Congressional approval and would presumably need Congress to say so to get rid of.
Well, these days, there will always be lawsuits, and I would note for the audience that it's they're just injunctions. What will end up happening is these things go fully litigated. And that's fine. They expected that. I think Trump now has said twice this week you know he expects that, and he's pretty even keeled about it. They think that. The second thing is that the machinery of Washington today with the tiny Republican majorities, is one where you can't
get efficiencies done quickly and effectively. You know, whether it be collapsing departments or agencies or anything else. And you know, when you need sixty votes in the Senate, it's just not going to happen. So there's that. Finally, you know, what they're looking at is a situation where you know, the government, excuse me, the public has long since supported
the idea of pursuing efficiencies in government, thank you. And I talked a couple of months ago about this brewing DOJE idea, and I said, look, I'm you know, they want to get two billion or excuse me, two trillion efficiencies. I guarantee you they can find half of that right off the top, and they're they're working on that, you know. But finally, I would also point out that they're not talking about ending entire programs. They're not talking about ending
for an aid for example. What they're trying to do is is you know, I would look at it as essentially kind of purifying the stream and making sure that the dollars that are going where they're supposed to go are going for proper things and not for the long laundry list parade of horribles that we've seen earlier.
There's still going to be a lot of question, isn't there about whether Elon Musk should be leading this effort. He's been named a special government employee, but he hasn't been confirmed by the Senate. His position doesn't require Senate confirmation because there's a question still, isn't there about what exactly that position is. We got about a minute left.
Yeah, there are questions about that, and they're going to be questions about that. You know, I'd say that the two things. One is that you know, people that are focusing on Musk Qualm Musk are missing the point. It's you know, you're not We're not in a situation here where the president has been supplanned somehow, or in a situation where the president very clearly is saying, you know, this is a guy who's doing this job before me
and subject to my approval. The other thing is, you know, there's a political dimension to this, and the political dimension hugely favors Republicans. On this Democratic Party is essentially split right down the middle on whether they had to be spending time on nattering on about Musk or actually getting around a series of issues that actually help average people.
And you know, the folks who are going on and on about Musk like this is some great constitutional crisis, I think are missing a much bigger point.
This is Bloomberg day Break, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Day Ray