WASHINGTON – For the past 17 months since Joseph R. Biden Jr. roused his campaign after an embarrassing fourth place in the Iowa caucuses, Joseph R. Biden Jr. has relied on Anita Dunn, a veteran Washington advisor, for both guidance and guidance as a grudge.
Ms. Dunn, 63, gave direction as Mr. Biden’s campaign took off. She later refused to allow Julian Castro, a former housing minister, a requested speaking time at the Democratic National Convention, still upset by his night of debate against Mr Biden’s mental acuity, according to people familiar with the snub. And so far in the west wing she has helped shape every important political advance.
Now, Ms. Dunn will return to her powerful democratic consultancy, leaving a void in Mr. Biden’s little inner circle as the highly contagious Delta variant permeates unvaccinated communities and the fate of Mr. Biden’s bipartisan infrastructure deal is on the verge of collapse.
“It brings stability and adherence to strategy,” said David Plouffe, the former Obama campaign manager. “You can see it in the White House, where they are very disciplined about Covid, the economy and the President’s commitment. This discipline and not swinging in every pitch is really classic Anita. “
Ms. Dunn has prepared the President for every interview and press conference since taking on his campaign and promoting the government’s buttoned-up approach to the news media. She is widely credited with promoting women to leadership positions in the west wing. And she firmly opposes Mr. Biden asking questions from reporters on a regular basis, which she believes does little to advance his agenda. She prefers town hall events.
But for all of her discipline and expertise, Ms. Dunn’s presence in the Biden administration, and before that in the Obama administration, has raised the question of how her influence in government overlaps with the corporate work of her company, which represents clients who want to influence politics .
Ms. Dunn has just parted ways with SKDK, the business and policy advisory firm she co-founded, and is returning next month for short campaign and government work. And the fact that it is exempt from filing public financial disclosures required by full-time presidential candidates has been criticized by some ethics watchers.
Your presence in the west wing is also evidence of how Mr Biden has prioritized his reliance on trustworthy personalities with decades of experience in the bypass, even as he promised to end access peddling common during the Trump administration. (This week Thomas J. Barrack Jr., a close friend of former President Donald J. Trump and one of his top 2016 fundraisers, was accused of using his access to Mr. Trump to promote the UAE’s foreign policy goals and then reiterated Misleading federal agents about his activities.)
Ms. Dunn and her colleagues have said that she has always scrupulously adhered to ethical rules. The SKDK emphasizes that it does not lobby, but rather provides political and media advice.
Ms. Dunn and her husband Robert Bauer, a former White House attorney who still serves as personal advocate for both Mr. Biden and former President Barack Obama, have long been part of the infrastructure of Washington’s national democratic politics.
Following the 2020 election, Ms. Dunn intended to return to her position as managing director of her company, which represents Pfizer, AT&T and Amazon alongside other corporate giants such as the NAACP
However, Mr. Biden and his wife Jill Biden had other plans. They urged Ms. Dunn to join the new government, reminding her that the pandemic was killing 3,000 people every day and that Mr. Biden relied on her experience and determination.
Ms. Dunn did not feel that she could say no, colleagues said.
She agreed to work for a short term as “special government agent,” a designation that exempts her from the public finance disclosure required of full-time government employees, but also limits the number of days she spends in white A house.
Nor did she intend to oversee Mr Biden’s campaign. But after finishing fourth in the Iowa caucuses, followed by a disastrous fifth place in New Hampshire, Ms. Dunn was motivated by a mixture of loyalty and desperation, according to colleagues.
There was little money in February 2020. There were no crowds. Ms. Dunn took control of the entire operation, lived at a Hampton Inn in Philadelphia near the campaign headquarters, and approved $ 200 in office supplies, colleagues recalled.
Ms. Dunn helped Mr. Biden conclude that the timing was not right. Mr Biden reached out to her again in 2018 when he was seriously considering a run against Mr Trump.
In her current position, she earns a salary of $ 129,000, just below the $ 132,552 threshold that requires filing public financial disclosures. (Mr. Bauer, who is a co-chair of the President’s Commission to Evaluate Proposed Revisions in the Supreme Court, is also a special government official, though his role is unpaid.)
Eleanor Eagan, a research director for the Revolving Door Project, criticized the government for allowing Ms. Dunn to bypass disclosure rules. “Biden has promised to restore confidence in the government after Trump’s fantastically corrupt government,” Ms. Eagan said. “Allowing this and similar evasions is a clear violation of this promise.”
Now Ms. Dunn is returning to the private sector, where her colleagues benefit from her connections in the west wing.
Ms. Dunn’s company was also hired to handle the $ 2.2 million direct mail contract for the Biden campaign, according to the campaign papers, underscoring how the business world and the political world are sometimes aligned.
Some of SKDK’s customers have sparked controversy, such as the case of NSO Group, an Israeli cyber-tech company that The Intercept said was accused of using its spyware to hack the phones of journalists and human rights activists. Hilary Rosen, a partner at SKDK, said she stopped representing the company in 2019 and dropped it as a customer over spyware allegations.
A senior White House official said Ms. Dunn would be subject to the governmental restrictions that apply to former federal employees. This includes a two-year limit on who she contacts on matters in which the government has a “significant interest” that has been pending under its official responsibility in the White House.
Even with her return to the company, no one at the White House expects Ms. Dunn’s influence in the Biden world to end completely. Indeed, many view her departure as a moment to take a deep breath before she begins planning the president’s re-election, which he has so far announced.
“She will always be a phone call away,” said Cedric Richmond, a senior adviser to the White House.
Fox News once devoted its 7 p.m. and 11 p.m. time slots to relatively straightforward newscasts. Now those hours are filled by opinion shows led by hosts who denounce Democrats and defend the worldview of former President Donald J. Trump.
For seven years, Juan Williams was the lone liberal voice on “The Five,” the network’s popular afternoon chat show. On Wednesday, he announced that he was leaving the program, after months of harsh on-air blowback from his conservative co-hosts. Many Fox News viewers cheered his exit on social media.
Donna Brazile, the former Democratic Party chairwoman, was hired by Fox News with great fanfare in 2019 as a dissenting voice for its political coverage. She criticized Mr. Trump and spoke passionately about the Black Lives Matter movement, which other hosts on the network often demonized. Ms. Brazile has now left Fox News; last week, she quietly started a new job at ABC.
Onscreen and off, in ways subtle and overt, Fox News has adapted to the post-Trump era by moving in a single direction: Trumpward.
The network has rewarded pro-Trump pundits like Greg Gutfeld and Dan Bongino with prize time slots. Some opinion hosts who ventured on-air criticism of the former president have been replaced. And within the Fox News reporting ranks, journalists have privately expressed concern that the network is less committed to straight-ahead news coverage than it was in the past.
The shifts at Fox News, which is controlled by the father-and-son moguls Rupert and Lachlan Murdoch, have come in the wake of what amounted to an existential moment for a cable channel that is home to Trump cheerleaders like Sean Hannity and Laura Ingraham: the 2020 election.
Fox News’s ratings fell sharply after the network made an early call on election night that Joseph R. Biden Jr., the Democratic presidential nominee, would carry Arizona and later declared him the winner, even as Mr. Trump advanced lies about fraud. With viewers in revolt, the network moved out dissenting voices and put a new emphasis on right-wing commentary.
In January, the network fired its veteran politics editor, Chris Stirewalt, who had been an onscreen face of the early call in Arizona for Mr. Biden. This month, it brought on a new editor in the Washington bureau: Kerri Kupec, a former spokeswoman for Mr. Trump’s attorney general William P. Barr. She had no journalistic experience.
Financially, the Murdochs’ formula has produced results: After a rare loss to archrivals CNN and MSNBC in January, Fox News’s ratings strength has recovered; the channel is again the Nielsen leader in cable news. In May, Fox News is on track to more than double CNN’s prime-time viewership.
Its new opinion shows at 7 and 11 — with segments that lament “cancel culture” and attack Mr. Biden — are attracting bigger audiences than the newscasts they replaced. And the niche right-wing network Newsmax has failed to sustain its postelection audience gains.
Partisanship plays well on cable news, an insight not lost on programmers at other networks who are chasing fatigued viewers. Liberal-leaning MSNBC has expanded the show hosted by the anti-Trump commentator Nicolle Wallace; it also replaced the moderate Chris Matthews at 7 p.m. with the partisan commentator Joy Reid. Last week, CNN dropped one of its chief conservative commentators, Rick Santorum, after he was criticized for remarks about Native Americans.
“Conservatives have a long-held suspicion of the mainstream media being in the tank for Democrats and for the left,” said Ryan Williams, a Republican strategist and longtime aide to Mitt Romney who has occasionally appeared on the network as a guest. “Fox News for many years was viewed as the only outlet that wasn’t shilling for the other side. Liberals may doubt the power of Fox News, but it still draws a considerable audience for a reason.”
Fox News says its news coverage remains robust. And in some ways, the Murdochs are making a rational business decision by following the conservatives who have made up the heart of the Fox News audience; recent surveys show that more than three-quarters of Republicans want Mr. Trump to run in 2024.
But under Roger Ailes, the network’s founder, who shaped its look and feel, Fox News elevated liberal foils like Alan Colmes, a Democrat who shared equal billing in prime time with Mr. Hannity until the end of 2008, and moderates like Mr. Williams.
Roger Ailes, the founder of Fox News, wanted some unpredictability among commentators.Credit…Andrew Toth/FilmMagic
“Roger’s view was you had to have some unpredictability and you had to challenge the audience; you couldn’t just be reading Republican talking points every night,” said Susan R. Estrich, a Democratic lawyer and former commentator on Fox News who negotiated Mr. Ailes’s exit from the network amid his sexual misconduct scandal.
Ms. Estrich recalled that Mr. Ailes had defended Megyn Kelly, the former Fox News host, when Mr. Trump, then a presidential candidate, attacked her in misogynist terms. Now, she said, “instead of trying to broaden their audience, Fox News is narrowing it and digging in.”
Today in Business
Updated
May 28, 2021, 12:54 p.m. ET
Ms. Brazile said she had left Fox News of her own accord.
“Fox never censored my views in any way,” she wrote in an email. “Everyone treated me courteously as a colleague.” Ms. Brazile added: “I believe it’s important for all media to expose their audiences to both progressive and conservative viewpoints. With the election and President Biden’s first 100 days behind us, I’ve accomplished what I wanted at Fox News.”
Mr. Williams will remain at Fox News as a senior political analyst; the network said in a statement that he had requested to be closer to his family in Washington rather than commute to New York, where “The Five” is taped. Fox News said another liberal host would replace him. Among those in contention is a newly hired contributor to the Fox stable, the former Democratic congressman Harold Ford Jr.
Mr. Williams departed after a harder edge had crept into his exchanges with colleagues like Mr. Gutfeld and Jesse Watters. “The Five” had long been a venue for heated, if friendly debate, but Mr. Williams was repeatedly mocked and shouted down when he accused Mr. Trump of lying about the election and fueling the riot at the Capitol on Jan. 6.
Mr. Williams also noted, on-air, a Fox News report about Mr. Biden that falsely claimed he wanted to restrict Americans’ consumption of hamburgers. (Fox News later issued a correction.)
Greg Gutfeld, an on-air antagonist to Mr. Williams on “The Five,” now has his own nightly show, “Gutfeld!”Credit…Fox News
His prime antagonist, Mr. Gutfeld, started an 11 p.m. show last month that is meant to compete with late-night fare like “The Daily Show.” “Gutfeld!” has attracted a bigger viewership than the previous 11 p.m. offering, a newscast anchored by Shannon Bream that was shifted to midnight.
Fox News is still determining a permanent host for its new 7 p.m. opinion hour, which is now a reliable venue for pro-Trump commentary. It was where Tucker Carlson, the network’s 8 p.m. host, made his remarks about white replacement theory that prompted an outcry from the Anti-Defamation League.
A pro-Trump drift at Fox News is not new: George Will, a traditional conservative who opposed Mr. Trump’s candidacy, lost his contributor contract in 2017. Shepard Smith, a news anchor who was tough on Mr. Trump, left in 2019.
Some Fox News journalists, though, say privately that they are increasingly concerned with the network’s direction. Kristin Fisher, one of the network’s rising stars in Washington and a White House correspondent, left Fox News earlier this month despite the network’s effort to keep her. She had faced criticism from viewers in November after a segment in which she aggressively debunked lies about election fraud advanced by Mr. Trump’s lawyers.
The longtime Washington bureau chief, Bill Sammon, resigned in January after internal criticism over his handling of election coverage, around the time that Mr. Stirewalt was fired. (Mr. Stirewalt was let go along with roughly 20 digital journalists at Fox News, which the network attributed to a realignment of “business and reporting structure to meet the demands of this new era.”)
Mr. Sammon has effectively been replaced by Doug Rohrbeck, a producer with extensive news experience on Bret Baier’s newscast and Chris Wallace’s Sunday show. Still, some Fox journalists were surprised when the network hired Ms. Kupec, the former Barr spokeswoman, to work under Mr. Rohrbeck.
A Fox News spokesperson said the network was proud of the journalism from its reporting ranks, listing examples including the foreign correspondent Trey Yingst’s coverage of Israel, Jennifer Griffin’s coverage of the Pentagon, and reporting on the crisis at the Mexican border by Bill Melugin and Aishah Hasnie.
Mr. Baier, the network’s chief political anchor, announced in May that he had extended his contract through 2025. Along with Mr. Wallace of “Fox News Sunday,” he regularly lands newsy interviews; a recent conversation with Representative Liz Cheney of Wyoming grew testy when she faulted Fox News for perpetuating Mr. Trump’s lies about the election and Mr. Baier responded that he had made clear to viewers that Mr. Biden was the legitimate victor.
Fox News has a smaller international footprint than rivals like CNN, but it maintains several foreign bureaus and has had reporters in Israel covering the recent violence there. On Wednesday, the network announced an expansion of Fox News International, a streaming service available in 37 countries in Asia and Europe.
Despite continuing criticism from liberals, Fox News remains a financial juggernaut for the Murdoch empire; it is expected to earn record advertising revenues this year, the network said.
Even as its programming decisions seem aimed at attracting Trump supporters, Fox News does face one roadblock: Mr. Trump. The former president has maintained his stinging criticism of Fox News, which, he has claimed, betrayed him by calling the election for Mr. Biden.
On Friday, Mr. Trump renewed his criticism in a statement that he issued in response to a critical speech by the former House speaker Paul D. Ryan, a member of the Fox Corporation board since 2019.
“Fox totally lost its way and became a much different place” after Mr. Ryan joined the board, the former president wrote. Mr. Trump added: “Fox will never be the same!”
Fox News once devoted its 7 p.m. and 11 p.m. time slots to relatively straightforward newscasts. Now those hours are filled by opinion shows led by hosts who denounce Democrats and defend the worldview of former President Donald J. Trump.
For seven years, Juan Williams was the lone liberal voice on “The Five,” the network’s popular afternoon chat show. On Wednesday, he announced he was leaving the program, after months of harsh on-air blowback from his conservative co-hosts. Many Fox News viewers cheered his exit on social media.
Donna Brazile, the former Democratic Party chairwoman, was hired by Fox News with great fanfare in 2019 as a dissenting voice for its political coverage. She criticized Mr. Trump and spoke passionately about the Black Lives Matter movement, which other hosts on the network often demonized. Ms. Brazile has now left Fox News; last week, she quietly started a new job at ABC.
Onscreen and off, in ways subtle and overt, Fox News has adapted to the post-Trump era by moving in a single direction: Trumpward.
The network has rewarded pro-Trump pundits like Greg Gutfeld and Dan Bongino with prize time slots. Some opinion hosts who ventured on-air criticism of the former president have been replaced. And within the Fox News reporting ranks, journalists have privately expressed concern that the network is less committed to straight-ahead news coverage than it was in the past.
The shifts at Fox News, which is controlled by father-and-son moguls Rupert and Lachlan Murdoch, have come in the wake of what amounted to an existential moment for a cable channel that is home to Trump cheerleaders like Sean Hannity and Laura Ingraham: the 2020 election.
Fox News’s ratings fell sharply after the network made an early call on election night that Mr. Biden would carry Arizona and later declared him the winner, even as Mr. Trump advanced lies about fraud. With viewers in revolt, the network moved out dissenting voices and put a new emphasis on hard-line right-wing commentary.
In January, the network fired its veteran politics editor, Chris Stirewalt, who had been an onscreen face of the early call in Arizona for Mr. Biden. Earlier this month, it brought on a new editor in the Washington bureau: Kerri Kupec, a former spokeswoman for Mr. Trump’s former attorney general, William P. Barr. She had no prior journalistic experience.
Financially, the Murdochs’ formula has produced results: after a rare loss to archrivals CNN and MSNBC in January, Fox News’s ratings strength has recovered; the channel is now once again the Nielsen leader in cable news. In May, Fox News is on track to more than double CNN’s prime-time viewership.
Its new 7 p.m. and 11 p.m. opinion shows — with segments that lament “cancel culture” and attack Mr. Biden — are attracting bigger audiences than the newscasts they replaced. And the niche right-wing network Newsmax has failed to sustain its postelection audience gains.
In some ways, the Murdochs are making a rational business decision by following the conservatives who have made up the heart of the Fox News audience; recent surveys show that more than three-quarters of Republicans want Mr. Trump to run in 2024.
But under Roger Ailes, the network’s founder who shaped its look and feel, Fox News elevated liberal foils like Alan Colmes, a Democrat who shared equal billing in prime-time with Mr. Hannity until the end of 2008, and moderates like Mr. Williams.
Roger Ailes, the founder of Fox News, wanted some unpredictability among commentators.Credit…Andrew Toth/FilmMagic
“Roger’s view was you had to have some unpredictability and you had to challenge the audience; you couldn’t just be reading Republican talking points every night,” said Susan R. Estrich, a Democratic lawyer and former commentator on Fox News who negotiated Mr. Ailes’s exit from the network amid his sexual misconduct scandal.
Today in Business
Updated
May 28, 2021, 12:54 p.m. ET
Ms. Estrich recalled that Mr. Ailes had defended Megyn Kelly, the former Fox News host, when Mr. Trump, then a presidential candidate, attacked her in misogynist terms. Now, she said, “instead of trying to broaden their audience, Fox News is narrowing it and digging in.”
Partisanship plays well on cable news, an insight not lost on programmers at other networks who are chasing fatigued viewers. Liberal-leaning MSNBC expanded the show hosted by the anti-Trump commentator Nicolle Wallace; it also replaced the moderate Chris Matthews at 7 p.m. with the partisan commentator Joy Reid. Last week, CNN dropped one of its chief conservative commentators, Rick Santorum, after he was criticized for remarks about Native Americans.
Ms. Brazile said she had left Fox News of her own accord.
“Fox never censored my views in any way,” she wrote in an email. “Everyone treated me courteously as a colleague.” Ms. Brazile added: “I believe it’s important for all media to expose their audiences to both progressive and conservative viewpoints. With the election and President Biden’s first 100 days behind us, I’ve accomplished what I wanted at Fox News.”
Mr. Williams will remain at Fox News as a senior political analyst; the network said in a statement that he had requested to be closer to his family in Washington rather than commute to New York, where “The Five” is taped. Fox News said he will be replaced by another liberal host; among those in contention is a newly hired contributor to the Fox stable, the former Democratic congressman Harold Ford Jr.
Mr. Williams’s departure came after a harder edge had crept into his exchanges with colleagues like Mr. Gutfeld and Jesse Watters. “The Five” had long been a venue for heated, if friendly debate, but Mr. Williams was repeatedly mocked and shouted down when he accused Mr. Trump of lying about the election and fueling the riot at the Capitol on Jan. 6.
Mr. Williams also noted, on-air, an erroneous Fox News report about Mr. Biden that falsely claimed he wanted to restrict Americans’ consumption of hamburgers. (Fox News later issued a correction.)
Greg Gutfeld, an on-air antagonist to Mr. Williams on “The Five,” now has his own nightly show, “Gutfeld!”Credit…Fox News
His prime antagonist, Mr. Gutfeld, started an 11 p.m. show last month that is meant to compete with late-night fare like “The Daily Show.” “Gutfeld!” has attracted a bigger viewership than the previous 11 p.m. offering, a newscast anchored by Shannon Bream that was shifted to midnight.
Fox News is still determining a permanent host for its new 7 p.m. opinion hour, which is now a reliable venue for pro-Trump commentary. It was where Tucker Carlson, the network’s 8 p.m. host, made his remarks about white replacement theory that prompted an outcry from the Anti-Defamation League.
A pro-Trump drift at Fox News is not new: George Will, a traditional conservative who opposed Mr. Trump’s candidacy, lost his contributor contract in 2017. Shepard Smith, a news anchor who was tough on Mr. Trump, left in 2019.
Some Fox News journalists, though, say privately they are increasingly concerned with the network’s direction. Kristin Fisher, one of the network’s rising stars in Washington and a White House correspondent, left Fox News last month despite the network’s effort to keep her. She had faced criticism from viewers in November after a segment in which she aggressively debunked lies about election fraud advanced by Mr. Trump’s lawyers.
The longtime Washington bureau chief, Bill Sammon, resigned in January after internal criticism over his handling of election coverage, around the time that Mr. Stirewalt was fired. (Mr. Stirewalt was let go along with roughly 20 digital journalists at Fox News, which the network attributed to a realignment of “business and reporting structure to meet the demands of this new era.”)
Mr. Sammon has effectively been replaced by Doug Rohrbeck, a producer with extensive news experience on Bret Baier’s newscast and Chris Wallace’s Sunday show. Still, some Fox journalists were surprised when the network hired Ms. Kupec, the former Barr spokeswoman, to work under Mr. Rohrbeck. (In 2019, CNN hired Sarah Isgur, the spokeswoman for former Attorney General Jeff Sessions, as a political editor. After protests from staff, she was shifted to an on-air role and later left the network.)
Fox News says its news coverage remains robust. Mr. Baier, its chief political anchor, announced in May that he had extended his contract through 2025. He regularly lands newsy interviews; a recent conversation with Representative Liz Cheney of Wyoming grew testy when she faulted Fox News for perpetuating Mr. Trump’s lies about the election and Mr. Baier responded that he had made clear to viewers that Mr. Biden was the legitimate victor.
Fox News has a smaller international footprint than rivals like CNN, but it maintains several foreign bureaus and has had multiple reporters on the ground in Israel covering the recent violence there. On Wednesday, the network announced an expansion of Fox News International, a streaming service available in 37 countries in Asia and Europe.
Despite ongoing criticism from liberals, Fox News remains a financial juggernaut for the Murdoch empire; it is expected to earn record advertising revenues this year, the network said.
Even as its programming decisions seem aimed at attracting Trump supporters, Fox News does face one roadblock: Mr. Trump. The former president has maintained his stinging criticism of Fox News, which, he has claimed, betrayed him by calling the election for Mr. Biden.
On Friday, after criticism from the former House Speaker Paul Ryan, Mr. Trump wrote that “Fox totally lost its way and became a much different place” after the Murdochs appointed Mr. Ryan to the Fox Corporation board.
A GameStop store in the Koreatown area of Los Angeles. Jim Bell, the company’s chief financial officer, who joined the company in mid-2019, is leaving.Credit…Philip Cheung for The New York Times
GameStop’s chief financial officer, Jim Bell, is leaving the company in late March, following a stock-trading frenzy that briefly sent shares in the video game retailer surging.
The company gave no reason for Mr. Bell’s departure in its announcement on Tuesday, but noted it would look for a successor “with the capabilities and qualifications to help accelerate GameStop’s transformation.” Mr. Bell joined GameStop less than two years ago.
GameStop jumped into the headlines in late January when amateur investors used trading apps to buy options and pump up its share price, defying hedge funds that had bet the price would fall. The chaotic trading led to congressional hearings last week, but executives from GameStop, which was essentially caught in the middle, were not called to testify.
GameStop’s share price closed at about $45 on Tuesday. It reached $483 on Jan. 28 after starting the year at $19.
The wild swings in share price were detached from what was happening at the company, where a major stockholder has been trying to force a turnaround. In early January, Ryan Cohen, the manager of RC Ventures and a large stockholder, joined the GameStop board. He has been pressuring the company’s executive team to overhaul GameStop’s strategy and focus on digital growth. The company has more than 5,000 stores, many in American malls and shopping strips, but has steadily lost sales to major online retailers like Amazon.
Mr. Bell joined the company in June 2019 at the age of 51 from Wok Holdings, which owns the restaurant chain P.F. Chang’s. In a short statement, GameStop thanked Mr. Bell “for his significant contributions and leadership, including his efforts over the past year during the Covid-19 pandemic.”
Jerome H. Powell, the Federal Reserve chair, said the central bank would keep buying bonds until it saw “substantial further progress” toward full employment and stable inflation.Credit…Pool photo by Susan Walsh
Stocks on Wall Street were set to open slightly higher on Wednesday, and most commodities prices were rising, after the Federal Reserve chief on Tuesday reiterated the need to provide plenty of support for the economic recovery from the pandemic.
“The economic recovery remains uneven and far from complete, and the path ahead is highly uncertain,” Jerome Powell, the Fed chair, told the Senate Banking Committee on Tuesday. He will speak to lawmakers in the House later on Wednesday.
The S&P 500 index reached record highs earlier in the month as traders bet on the recovery and a successful vaccine rollout. Easy-money policies has also helped push asset prices higher. But fears that stronger economic growth and higher inflation would prompt the Fed to withdraw some monetary support have caused bond prices to fall, pushing up yields. This temporarily unsettled stock markets.
On Wednesday, yields on U.S. bonds resumed their march higher, after falling the previous day. The yield on 10-year notes was at about 1.38 percent.
On Tuesday, Mr. Powell tried to reassure investors. He said that the central bank planned to keep buying bonds until it saw “substantial further progress” toward its twin goals of full employment and stable inflation. The United States can “expect us to move carefully, and patiently, and with a lot of advance warning” when it comes to slowing that support, Mr. Powell said.
Futures of West Texas Intermediate, the U.S. crude oil benchmark, rose more than 1 percent to $62 a barrel, the highest in 13 months. This week, for the first time since 2011, copper prices climbed above $9,000 a metric ton in London.
Elsewhere in markets
Bitcoin prices rose on Wednesday, helping lift the share price of Tesla, which recently invested $1.5 billion in the cryptocurrency, and the shares of other blockchain-based companies, such as Riot Blockchain and Marathon Patent Group, in premarket trading.
Most European stocks indexes gained and the Stoxx Europe 600 rose 0.3 percent. The fourth quarter growth of Germany’s economy was revised higher to 0.3 percent, from 0.1 percent.
Most Asian indexes fell. The Hang Seng in Hong Kong dropped 3 percent with financial and consumer stocks falling the most after the government announced a plan to increase a tax on stock trading. Shares in Hong Kong Exchanges & Clearing fell by nearly 9 percent, the most in the index.
A line at a San Antonio food distribution center on Sunday after a winter storm left millions without power.Credit…Christopher Lee for The New York Times
A winter storm in Texas that pushed its power grid to the brink of collapse and left millions without electricity during a brutal cold snap has led to the resignations of five officials who oversaw the state’s electric grid.
The Electric Reliability Council of Texas, which governs the flow of power for more than 26 million Texans, has been blamed for the widespread failures. The governor, lawmakers and federal officials quickly began inquiries into the system’s failures, particularly its preparation for cold weather, reports Rick Rojas for The New York Times.
The five board members, who announced on Tuesday that they intended to resign after a meeting set for Wednesday morning, were all from outside of Texas, a point of contention for critics who questioned the wisdom of outsiders playing such an influential role in the state’s infrastructure. In a statement filed with the Public Utility Commission, four board members said they were stepping down “to allow state leaders a free hand with future direction and to eliminate distractions.” In a footnote, the filing added that a fifth member was also resigning.
Those departing are the chairwoman, Sally Talberg, a former state utility regulator who lives in Michigan; Peter Cramton, the vice chairman and an economics professor at the University of Cologne in Germany and the University of Maryland; Terry Bulger, a retired banking executive who lives in Illinois; and Raymond Hepper, who is a former official with the agency overseeing the power grid in New England. Another person who was supposed to fill a vacant seat, Craig S. Ivey, has withdrawn from the 16-member board.
The board became the target of blame and scrutiny after the winter storm last week brought the state’s electric grid precariously close to a complete blackout that could have taken months to recover from. In a last-minute effort to avert that, the council, known as ERCOT, ordered rolling outages that plunged much of the state into darkness and caused electricity prices to skyrocket. Some customers had bills well over $10,000.
The second and final day of the DealBook DC Policy Project featured discussions on the prospects of bipartisan deal-making in Washington, overhauling of the financial markets and corporate America’s role in fighting the pandemic.
Here are the highlights from the sessions on Tuesday:
“We’ll lose 1.3 million jobs.”
Elements of Democrats’ stimulus proposals, including raising the federal minimum wage to $15 an hour, attracted criticism from Senator Mitt Romney, Republican of Utah. But he mentioned potential common ground with the Biden administration, including on climate change. Mr. Romney defended his traditional conservatism amid the G.O.P.’s embrace of right-wing populism, but noted that if former President Donald J. Trump ran for re-election in 2024, “I’m pretty sure he will win the nomination.”
“I think it’s pathological that you could have greater than 100 percent short interest.”
Lessons from meme-stock mania were among the topics discussed by Vlad Tenev, the chief executive of the online brokerage firm Robinhood. He defended the practice of directing trades to market makers for a fee, which allows Robinhood to offer commission-free trading. Also on the panel, Jay Clayton, the former chairman of the Securities and Exchange Commission, said that the markets were functioning the way they should in many ways, including by promoting competition among brokers and market makers.
“There will continue to be vaccinations required for Covid.”
The chief executive of CVS Health, Karen S. Lynch, spoke about the fight against the pandemic, saying that people would probably need booster shots and might need to keep wearing masks next year. But whether businesses should require employees to be inoculated was a “company-by-company response,” she said.
Natasha Van Duser has war stories from bartending during the pandemic. She has since left service work.Credit…Desiree Rios for The New York Times
During two enormous crises — a public health emergency and an economic crash — restaurant service workers have found themselves double-exposed.
Many say their average tips have declined, while they’ve been saddled with the added work of policing patrons who aren’t social distancing, or as one service worker put it, “babysitting for the greater good,” Emma Goldberg reports for The New York Times.
On top of this, women, who make up more than two-thirds of servers, say they are facing “maskual harassment” — a term coined by the nonprofit organization One Fair Wage to describe demands that servers remove their masks to receive a tip.
The economic challenges have raised existential questions: Could this crisis herald the end of tipping, or a raise in the minimum wage for tipped workers? Depending on subjective gratuities has long been a fraught issue, but rarely has it had the safety consequences that it does now, when workers are struggling to enforce public health compliance from the customers whose tips they depend on.
Natasha Van Duser, 27, who tended bar in Manhattan, had never thought to show up to work with pepper spray. That was before last spring, when, she said, a customer dining outside spat on her and threatened to kill her when she asked him to put on a mask before walking to the bathroom; there were others who shouted expletives at her or suggested she take the temperature of their behinds instead of their foreheads.
In a recent national study of more than 1,600 workers, conducted by One Fair Wage and the Food Labor Research Center at the University of California, Berkeley, over three-quarters of workers reported “witnessing hostile behavior” from customers who were asked to comply with coronavirus protocols, more than 40 percent reported a change in the frequency of unwanted sexual comments during the pandemic and more than 80 percent reported that their tips had declined.
Credit…Matt Chase
Boredom’s impact on the economy is under-researched, experts say, possibly because there has been no modern situation like this one, but many agree that it’s an important one, Sydney Ember reports for The New York Times.
Feeling bored may result in different kinds of behaviors, like increasing novelty seeking and increasing reward sensitivity, said Erin Westgate, an assistant professor of psychology at the University of Florida, who studies boredom.
This swirl of reactions to boredom can help explain the GameStop phenomenon, Ms. Westgate said. Investing in the stock was not just an act that felt engaging, powered by a propensity for taking risks and the excitement of reward, but also something that felt meaningful: For many traders, it was a form of protest.
Early in the pandemic, bread-making fervor prompted stores across the country to sell out of yeast. Puzzle sales have skyrocketed. Gardening has taken off as a hobby. Home improvement, too, has boomed. Sherwin-Williams said it had record sales in the fourth quarter and for the year, in part because of strong performances in its do-it-yourself and residential repaint businesses. Pandemic boredom evidently has nothing on watching paint dry.
There has also been an increase in sales of things like video games to keep us occupied, as well as things to help relieve the stress of the pandemic (and, perhaps, boredom from being at home), including self-help books, candles and messaging appliances.
It is possible that not being bored during certain periods of the day is also making people less productive, said Bec Weeks, who worked as a senior adviser for the Behavioural Economics Team of the Australian government and is a co-founder of a behavioral science app called Pique.
Research has shown that mind-wandering, an activity that can happen during periods of boredom, can result in greater productivity. But during the pandemic, some of the best opportunities for mind-wandering, like the daily commute to work, have been lost for the millions of people now working from home.
“Even in those moments when we used to be bored, there were often a lot of things going on that we didn’t realize,” Ms. Weeks said.
Credit…Andrea Chronopoulos
Last month, Laurence D. Fink, BlackRock’s chief executive, wrote that the company wanted businesses it invests in to remove as much carbon dioxide from the environment as they emit by 2050 at the latest.
But crucial details were missing from the pledge, including what proportion of the companies BlackRock invests in will be zero-emission businesses in 2050. On Saturday, in response to questions from The New York Times, a BlackRock spokesman said that the company’s “ambition” was to have “net zero emissions across our entire assets under management by 2050,” The New York Times’s Peter Eavis and Clifford Krauss report.
As the biggest companies strive to trumpet their environmental activism, the need to match words with deeds is becoming increasingly important.
Household names like Costco and Netflix have not provided emissions reduction targets. Others, like the agricultural giant Cargill and the clothing company Levi Strauss, have struggled to cut emissions. Technology companies like Google and Microsoft, which run power-hungry data centers, have slashed emissions, but are finding that the technology often doesn’t exist to carry out their “moonshot” objectives.
Determining how hard companies are really trying can be very difficult when there are no regulatory standards that require uniform disclosures of important information like emissions.
Institutional Shareholder Services, a firm that advises investors on how to vote on corporate matters, analyzed what corporations are doing to reduce emissions. Just over a third of the 500 companies in the S&P 500 stock index have set ambitious targets, it found, while 215 had no target at all. The rest had weak targets.
“To realize the necessary emission reductions, more ambitious targets urgently need to be set,” said Viola Lutz, deputy head of ISS ESG Climate Solutions, an arm of Institutional Shareholder Services. “Otherwise, we project emissions for S&P 500 companies will end up being triple of what they should be in 2050.”
The U.S. Postal Service on Tuesday chose Oshkosh Defense, a manufacturer of military vehicles, to build the next generation of postal delivery trucks, shunning an all-electric vehicle maker that had been in the running for the multibillion-dollar, 10-year contract.
Under an initial $482 million deal, Oshkosh will complete the design and then assemble 50,000 to 165,000 vehicles over 10 years, the Postal Service said.
Oshkosh was awarded the contract over two other bidders. One, the Workhorse Group, a small producer of electric delivery trucks based in Loveland, Ohio, was counting on the postal contract to provide a surge in revenue. At its height this month, the company’s stock was up more than tenfold in a year, in part on hopes it would win all or part of the postal contract. On Tuesday, after the Postal Service announced its decision, Workhorse shares lost nearly half their value. The other final bidder was Karsan, a Turkish maker of trucks and buses that was considered a long shot for the contract.
The choice of Oshkosh, which has no track record in producing electric vehicles, over Workhorse raised questions among some environmentalists over President Biden’s promised push to electrify the federal fleet. But some critics had also raised concerns that too swift a transition to plug-in trucks made by a fledgling company — and the buildup of charging infrastructure that would require — could burden a Postal Service already struggling with delivery delays.
Oshkosh has promised to shift to battery-powered vehicles if necessary, reflecting a wider push by automakers to bolster their offerings of electric vehicles to cut down on the industry’s carbon footprint. The new vehicles will be equipped with either fuel-efficient gasoline engines or electric batteries, and they will be retrofitted to keep pace with advances in electric vehicle technology, the Postal Service said.
The Post Office operates almost 230,000 vehicles and has one of the world’s largest civilian vehicle fleets, but its aging fleet — which federal data shows gets only about 10 miles a gallon — had also long been due for an upgrade.
US President Donald Trump greets as he boards Air Force One at Valley International Airport in Harlingen, Texas on January 12, 2021, after visiting the US-Mexico border wall.
Carlos Barria | Reuters
WASHINGTON – President Donald Trump is expected to leave the White House for West Palm Beach, Florida hours before his successor, President-elect Joe Biden, takes office, two people familiar with the arrangements told NBC News.
People said Trump could make final remarks as commander in chief during a farewell ceremony at Joint Base Andrews, where Air Force One and its twin bait are being held. From Andrews, Trump flies Air Force One for the last time to Mar-a-Lago, his private resort.
The White House declined to comment.
Last week, Trump announced that he would not be attending the inauguration, which Biden says is “one of the few things he and I have ever agreed on.”
Trump isn’t the first outgoing president to skip his successor’s inauguration. The others, according to the White House Historic Association, were Presidents John Adams, John Quincy Adams, and Andrew Johnson. Like Trump, Johnson was also charged.
Trump’s refusal to accept the election results culminated on Jan. 6 when swarms of his supporters stormed the U.S. Capitol and derailed the Congressional process to count the votes and confirm Biden’s win in the November 3 contest.
The House of Representatives indicted Trump on Wednesday for inciting a rebellion in a non-partisan vote in which 10 Republicans took part. It is unclear when the Senate trial will take place.
Trump is the only president in US history to have been charged twice.
He was first charged in December 2019 for abuse of power and obstruction of Congress in connection with his efforts to press the Ukrainian government to investigate the Biden family. Trump was later acquitted by the Senate.
Biden’s victory was projected by all major news agencies in mid-November and confirmed by votes by the electoral college in mid-December. The Republican president has falsely insisted that he won a “landslide” and that his presidency was stolen.
President Donald Trump listens to Mexican President Enrique Peña Nieto speaking on the phone as he announces that the United States has reached an agreement with Mexico on a new trade deal in the Oval Office of the White House on Monday, August 27, 2018 hit.
The Washington Post | The Washington Post | Getty Images
Vice President Mike Pence and Second Lady Karen Pence are expected to attend Biden’s inauguration.
The Obamas, Clintons, and former President George W. Bush and former First Lady Laura Bush will attend the inauguration.
Former President Jimmy Carter will not be in attendance due to Covid and health conditions, according to a spokesman. Carter, the oldest living president at 96, and former first lady Rosalyn Carter attended the inaugurations of Obama and Trump.
Trump’s decision not to attend Biden’s inauguration came a day after he finally conceded the presidential election. Without naming Biden, he admitted in a nearly three-minute video that “a new government will be inaugurated on January 20th.”
“My focus is now on ensuring a smooth, orderly and seamless transfer of power,” said the president in his first video statement after the uprising.
“Now the minds have to be cooled and calm restored. We have to continue with the business with America,” said Trump of the deadly uprising in the US Capitol.
Five people died in the violence, including a Capitol policeman.
The National Guard has moved 20,000 soldiers to DC to secure the US Capitol and the inauguration of Biden after last week’s violence.
The troop footprint in the country’s capital is more than the number of US soldiers in Iraq, Syria and Afghanistan combined.
