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Editor’s Note: Morning Money is a loose edition of POLITICO Pro Financial Services’ morning newsletter, which is sent to our subscribers in the morning at 5:15 a. m. m. La POLITICO Pro platform combines the news you want with the equipment you can use to take action that day. . bigger stories. Take action on the news with POLITICO Pro.
The global economy is hurtling off the cliff. For the first time in recent memory, the United States cannot take charge of an answer.
Runaway inflation, Russia’s invasion of Ukraine, Europe’s looming energy crisis, and a rudderless British government are just a few elements of the Rubik’s Cube of calamities central banks and governments face as they face painful recessions.
While a “sense of terror” surrounded last week’s IMF and World Bank meetings in Washington, our reports Kate Davidson and Victoria Guida hint that the U. S. is in Washington. The U. S. government is struggling to mount a coordinated response. The challenge is for the U. S. to do so. The U. S. , like other countries, is largely aimed at seeking to involve domestic crises. The Federal Reserve is at the forefront of raising interest rates and fuels the dangers of recession in an effort for emerging prices, putting pressure on economies around the world.
“At the end of the day, many national policies go their own way,” said Mark Sobel, president of the Official Forum of U. S. Monetary and Financial Institutions. U. S. and former Treasury official. ” The Fed is approving to do what the Fed is approving to do, and Europeans are passing by doing what they pass by doing. “
Finance leaders were divided on a number of issues and were 3 days late in releasing a G-20 funded at this week’s meetings, Bloomberg’s Eric Martin reports. Among the loopholes: Russian sanctions, Saudi Arabia’s oil production and global currencies.
IT’S MONDAY — AND MM is celebrating another playoff meltdown for the Los Angeles Dodgers. Send us your suggestions, article concepts or comments to cross the finish line on Friday: [email protected] and [email protected].
Knowledge of Empire State’s production is posted at 8:30 a. m. m. La FDIC meets on Tuesday. . . Data on housing starts are published on Wednesday. . . The Fed’s Beige Book is Wednesday. . . Unemployment programs are Thursday. . . Fed Governors Philip Jefferson, Lisa Cook and Michelle Bowman speak on Thursday. . . FDIC Acting Chairman Martin Gruenberg Discusses Crypto Regulation on Thursday. . . Data on inflation expectations to be released on Friday
BOSTIC REVIVES FED TRADE SCANDAL – De Victoria: “Federal Reserve Chairman Jerome Powell has asked the central bank’s inspector general to investigate Atlanta Fed President Raphael Bostic’s monetary activity after learning of transactions that meet the Fed’s ethics standards, the latest in a series of interest shock violations at the central bank.
The latest explosion of irrelevant transactions through Fed leaders comes as Congress considers a trade ban on elected officials that would also cover Fed board members and regional presidents. Elizabeth Warren (D-Mass. ), who has criticized the Fed’s handling of past industry scandals, has already seized on Bostic’s transactions as “further proof of the intensity of the Fed’s ethics problem. “
Bloomberg’s Bill Allison: “Boosted through $10 million donations from Citadel’s Ken Griffin and Blackstone Group’s Stephen Schwarzman, a super PAC heavily connected to Senate Republican leader Mitch McConnell raised $111 million in the third quarter, according to its most recent filing with the Federal Election Commission.
THE DEM MOM’S CANDIDATES ON BIDEN POLITICS – Jim Tankersley OF THE NYT: “Democratic candidates in competitive Senate races this fall spent little time on the track or on the airwaves touting the core provisions of their party’s $1. 9 trillion economic bailout. . . In part, that’s because the bailout has become fodder for Republicans to attack Democrats because of emerging prices.
When gaffes change politics – Nos Zack Colman and Karl Mathiesen: “David Malpass’ work as president of the World Bank comes despite calls for his impeachment by climate advocates, but the recent controversy over his views on climate could have helped push for substitution to help blank power despite its resistance.
BANKMAN-FRIED’S BILLION-DOLLAR PULLBACK: Friday’s MM exclusive with Sam Bankman-Fried triggers a backlash from Democratic activists. With the crypto billionaire and political megadonor saying he is unlikely to spend much on the general, the progressive organization Indivisible believes that “the apparent purpose was to bring as many progressives to their knees as you can imagine in an era of progressive force development in Congress,” said Indivisible’s co-executive director, says Léa Greenberg. Read more at POLITICO Influence.
ANOTHER FED TARGET FOR THE LEFT FLANK – From Victoria: The Fed “unanimously approved the acquisition by the US bank. “UU. de major U. S. retail operationsMUFG Union Bank, a Japanese company, a move that may provoke a backlash from progressive critics who claim the approval procedure for bank mergers is too lax.
“The Federal Reserve is ‘hurting’ the U. S. economy as the country prepares for an imaginable recession,” Sen. Bernie Sanders (I-Vt. ) said Sunday.
By Harriet Torry and Anthony DeBarros of the WSJ: “America will enter recession in the next 12 months as the Federal Reserve strives to reduce persistent inflation, the economy shrinks, and employers shed jobs in response to The Wall Street’s most recent survey of economists.
YIMBYS ENTERED THE CHAT: The NYT’s Mihir Zaveri: “A housing shortage and affordability crisis would possibly replace the political calculus of some progressives who have historically been among the housing industry’s most fervent critics. “
Brendan Case, Michelle F Davis and Ruth David of Bloomberg: “Kroger Co. agreed to buy Albertsons Cos as part of a $24. 6 billion commercial price deal that would create a U. S. grocery giant.
CFTC COMMISSIONER WANTS SAFEGUARDS FOR ‘DOMESTIC’ TRADERS – Our Declan Harty: “A senior CFTC official wants to adapt what it means to be a ‘retail investor’ to put in position safer barriers for the herd of other people who now sell products that fall under the agency’s aegis that was once difficult to understand. . . “You want there to be a cultural shift in the CFTC in the way we think about retail,” [CFTC Commissioner] Christy Goldsmith Romero said in an interview.
I COULDN’T HAVE LEGS – JELVER Horwitz, Salvador Rodriguez and Meghan Bobrowsky of WSJ: “Almost a year after Mark Zuckerberg changed the name of Facebook to Meta Platforms Inc. In a move by the company to bet on the metaverse, internal documents show the suffering of the transition with generational flaws, distant users and lack of clarity about what it takes to succeed.
STABLECOINS – De Sam: “SEC Chairman Gary Gensler said Friday that some dollar-pegged stablecoins may fall under the purview of his agency, a view that may clash with pressure to subject them to banking regulation. “
Our Matt Dixon: “A cryptocurrency exchange whose co-founder has been accused of creating a ‘hateful’ work environment and has publicly stated that he would break the law if it were more productive for his business, last month has donated $100,000 to Governor Ron DeSantis’ re-election bid.
Karen Lawson was promoted to Executive Vice President for Policy and Supervision at the Conference of State Bank Supervisors. She joined CSBS in 2021 as Senior Vice President.
Chinese President Xi Jinping vowed his country will succeed in its fight to expand strategically vital technology, underscoring Beijing’s fear of a U. S. crusade. U. S. to separate it from next-generation chip capabilities. —Bloomberg
President Joe Biden on Saturday unveiled British Prime Minister Liz Truss’s tax cut program, calling it a “mistake” and warning that the lack of “sound policies in other countries” could hold back the United States.
After firing her Chancellor of the Exchequer a few days ago, British Prime Minister Liz Truss will now have to fight to save her own task after many political analysts and members of her own party launch themselves into a fashionable British prime minister. Times. – Max Colchester of the WSJ