2025-09-18 19:40

Until Trump, no president had tried to fire a Fed official Legal battle jeopardizes Fed's longstanding independence Supreme Court has often backed Trump in emergency rulings WASHINGTON, Sept 18 (Reuters) - President Donald Trump's administration asked the U.S. Supreme Court on Thursday to let him move ahead with firing Federal Reserve Governor Lisa Cook - a move without precedent since the central bank's founding in 1913 - in a legal battle that imperils the Fed's independence. The Justice Department asked the justices to lift U.S. District Judge Jia Cobb's September 9 order temporarily blocking the Republican president from removing Cook, an appointee of Democratic former President Joe Biden. Cobb ruled that Trump's claims that Cook committed mortgage fraud before taking office, which Cook denies, likely were not sufficient grounds for removal under the law that created the Fed. Sign up here. "This application involves yet another case of improper judicial interference with the President's removal authority - here, interference with the President's authority to remove members of the Federal Reserve Board of Governors for cause," the Justice Department said in the filing. Cook took part in the Fed's highly anticipated two-day meeting in Washington on Tuesday and Wednesday in which the central bank decided to cut interest rates by a quarter of a percentage point, as policymakers responded to concerns about weakness in the job market. Cook was among those voting in favor of the cut announced on Wednesday. Congress included provisions in the law that created the Fed to shield the central bank from political interference. Under that law, Fed governors may be removed by a president only "for cause," though the law does not define the term nor establish procedures for removal. No president has ever removed a Fed governor, and the law has never been tested in court. Cook, the first Black woman to serve as a Fed governor, sued Trump in August after the president announced he would remove her. Cook has said the claims made by Trump against her did not give the president the legal authority to remove her and were a pretext to fire her for her monetary policy stance. Trump's bid to fire Cook reflects the broad view of presidential power he has asserted since returning to office in January. So long as the president identifies a cause for removal, that is within his "unreviewable discretion," the Justice Department said in Thursday's filing. "Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself - and refuses to explain the apparent misrepresentations," the filing stated. The administration urged the court to act immediately and issue an "administrative stay," which would allow Cook to be removed temporarily while the justices take the time they need to decide the Justice Department's formal request. Cook's lawyers quickly opposed any immediate action, saying Trump has "no urgent or compelling need" to fire Cook. "Temporarily removing her from her post would threaten our nation’s economic stability and raise questions about the Federal Reserve’s continued independence - risking shock waves in the financial markets that could not easily be undone," her lawyers said in a filing. The Fed did not immediately respond to a request for comment. It has previously said it would abide by a court's decision, and in the meantime Cook would remain in her job. RIPPLE EFFECT Concerns about the Fed's independence from the president in setting monetary policy could have a ripple effect throughout the global economy. The Cook legal battle has ramifications for the Fed's ability to set interest rates without regard to the wishes of politicians, widely seen as critical to any central bank's ability to function independently to carry out tasks such as keeping inflation under control. Trump this year has demanded that the Fed cut rates aggressively, berating Fed Chair Jerome Powell for his stewardship over monetary policy as the central bank focused on fighting inflation. Trump has called Powell a "numbskull," "incompetent" and a "stubborn moron." The administration has repeatedly asked the Supreme Court this year to intervene to allow implementation of Trump policies impeded by lower courts. The Supreme Court, which has a 6-3 conservative majority, has sided with the administration in almost every case it has been called upon to review this year. For instance, the Supreme Court has allowed Trump to proceed with the removal of various officials serving on federal agencies that had been established by Congress as independent from direct presidential control. But in a May order in a case involving Trump's dismissal of two Democratic members of federal labor boards, it signaled that it viewed the Fed as distinct from other executive branch agencies. The Supreme Court said the Fed "is a uniquely structured, quasi-private entity" with a singular historical tradition. 'BEST READING' Trump on August 25 said he was removing Cook from the Fed's Board of Governors, citing allegations that, before joining the central bank in 2022, she falsified records to obtain favorable terms on a mortgage. In blocking Cook's removal, the judge found that the 1913 law only allows a Fed governor to be removed for misconduct while in office. The mortgage fraud claims against Cook relate to actions prior to her Senate confirmation in 2022. The U.S. Court of Appeals for the District of Columbia Circuit in a 2-1 ruling on Monday denied the administration's request to put Cobb's order on hold, ruling that she likely was denied due process in violation of the U.S. Constitution's Fifth Amendment. "Before this court, the government does not dispute that it provided Cook no meaningful notice or opportunity to respond to the allegations against her," Judge Bradley Garcia wrote in an opinion joined by Judge J. Michelle Childs. Both judges were appointed by Biden. Judge Gregory Katsas, a Trump appointee, dissented. "The President notified Cook of the charges against her and waited five days for her to respond before removing her," the Justice Department said in Thursday's filing. "Having declined to bring any defense to the President's attention or to dispute any material facts, Cook cannot complain about insufficient process." Trump and his appointee William Pulte, the Federal Housing Finance Agency director, have claimed that Cook inaccurately described three separate properties on mortgage applications, which could have allowed her to obtain lower interest rates and tax credits. Trump's Justice Department also has launched a criminal mortgage fraud probe into Cook, and has issued grand jury subpoenas out of both Georgia and Michigan, according to documents seen by Reuters and a source familiar with the matter. A loan estimate for an Atlanta home purchased by Cook shows that she had declared the property as a "vacation home," according to a document reviewed , opens new tab by Reuters, information that would appear to undercut the allegations against her. Thursday's filing made no mention of that information or other reporting by Reuters that the property tax authority in Ann Arbor, Michigan, said she had not broken any property tax rules for the home there. https://www.reuters.com/world/trump-asks-us-supreme-court-allow-firing-fed-governor-lisa-cook-2025-09-18/

2025-09-18 19:20

US energy demand up for first time in two decades Energy dept seeks info for using authorities and funds Green energy critic says dozens of coal plants won't retire WASHINGTON, Sept 18 (Reuters) - The Trump administration on Thursday launched an effort to speed development of power plants and transmission lines as artificial intelligence boosts demand, even as it orders fossil fuel plants set to shut for good to keep operating. The Department of Energy, or DOE, is requesting information from stakeholders including utilities and regional transmission managers on near-term investment opportunities, readiness of projects, expectations on growth in power demand, and constraints that it says it can address. Sign up here. U.S. President Donald Trump on his first day back in office in January issued an order declaring an energy emergency as artificial intelligence, data centers, and electric vehicles are boosting power demand for the first time in two decades. The DOE has ordered several coal and natural gas plants that had planned to shut to keep operating, the latest U.S. move supporting fossil fuels. Trump claims that rapid adoption of solar and wind power has made U.S. electricity unstable and expensive, justifying his bid to end most subsidies for them. Reliability has improved in Texas, the U.S. grid with the most renewable energy, however. The Speed to Power program will help the DOE determine how to use funding programs and national emergency authorities to expand power generation and the grid. The DOE has billions of dollars in funds and financing through departments including its Loan Programs Office. In July, the DOE axed a $4.9 billion loan guarantee for a transmission line that was meant to send power from wind and solar energy projects in Kansas to cities in the Midwest and East. Also on Thursday, the Federal Energy Regulatory Commission took actions aimed to boost grid security. FERC approved and proposed rules to reduce the risks of the supply chain, cyber attacks and electrical grid disruptions caused by extreme cold, which can sometimes lead to blackouts. Green energy opponents say that coal plants that have been slated to retire during Trump's second term will be needed. Tom Pyle, president of the American Energy Alliance, predicted that 38 coal plants that are scheduled to close through 2028 would remain open, either on Trump orders or voluntarily. The U.S. Energy Information Administration said in July that in the first three months of 2025 power plants burned about 20% more coal than they did during that quarter in 2024. https://www.reuters.com/legal/litigation/us-launches-effort-speed-power-grid-projects-ai-2025-09-18/

2025-09-18 19:16

Microsoft's second data center at site previously eyed for Foxconn's factory First data center on track to open next year Data campus aims to house the world's most powerful AI supercomputer Microsoft plans solar power to offset data center energy use New fossil fuel power generation planned near data centers SAN FRANCISCO, Sept 18 (Reuters) - Microsoft (MSFT.O) , opens new tab on Thursday said it plans to build a second massive artificial intelligence data center in Wisconsin, bringing its spending in the state to more than $7 billion. The new $4 billion project will join a $3.3 billion data center in Mount Pleasant in the southeastern corner of the state, announced last year. Sign up here. Microsoft said the initial data center remains on track to open next year and will employ about 500 people at its peak, expanding to about 800 once the second data center is complete. It said with the addition of the second large-scale data center, the site would eventually house the world's most powerful AI supercomputer, connecting together hundreds of thousands of powerful chips from Nvidia (NVDA.O) , opens new tab. The area in Racine County, which sits nestled between Milwaukee and Chicago, has drawn the attention of U.S. presidents of both political parties in recent years. It was initially the site of a proposed $10 billion factory by electronics manufacturing giant Foxconn, which builds phones for Apple and others, during the first term of President Donald Trump, but those plans were drastically scaled back. At Microsoft's unveiling of the first data center last year, U.S. President Joe Biden, then running against Trump for a second time, highlighted Foxconn's pullback at the site. Microsoft said on Thursday that it plans to pre-pay for electrical infrastructure to avoid raising electricity rates in the region and that a state-of-the-art cooling system will tap into Wisconsin's cool climate and reduce the data center's yearly water use to that of an average restaurant. The company plans to build solar power in a different part of Wisconsin to offset its energy use at the data centers, but Microsoft President Brad Smith said the project will entail new fossil fuel power generation near the facilities. The driving factor was "what can be built in a particular area," Smith said in an interview. "This is (liquefied natural gas) territory." He said that the 800 permanent jobs the data centers create will be fewer than the thousands of jobs required to construct them but that there will still be jobs for skilled pipefitters and electricians. "All the things that we build need to be operated," Smith told Reuters. "It needs to be maintained. These are good jobs." https://www.reuters.com/business/microsoft-boosts-wisconsin-data-center-spending-7-billion-2025-09-18/

2025-09-18 19:07

CIUDAD DE PANAMÁ, 18 sep (Reuters) - El Canal de Panamá ha iniciado un proceso competitivo para seleccionar a la empresa que construirá y operará un ducto de gas licuado de petróleo bajo una concesión clave, informó su autoridad en el jueves, tras mantener reuniones con las empresas interesadas. El proyecto, que se prevé requiera una inversión de entre 4,000 y 8,000 millones de dólares, forma parte de la iniciativa de la vía acuática para satisfacer la creciente demanda de servicios, incluido el transbordo, y generar ingresos adicionales, tras una sentencia el año pasado del Tribunal Supremo sobre su ampliación. Sign up here. Solo el gasoducto de 2 millones de barriles por día (bpd) aportará entre 1,000 y 1,200 millones de dólares a los ingresos anuales de la vía acuática, dijo Ricaurte Vásquez, jefe del Canal, en una entrevista con Reuters tras las reuniones. Se espera que el ganador del proceso competitivo sea seleccionado en el último trimestre del próximo año, mientras que un proyecto paralelo para construir y operar dos nuevos puertos en la zona del Canal se lanzaría entre finales de este año y principios del próximo, explicó. Entre las compañías que se reunieron con autoridades del Canal están las energéticas: Exxon Mobil (XOM.N) , opens new tab, Energy Transfer (ET.N) , opens new tab, Phillips 66 (PSX.N) , opens new tab, Puma Energy, Shell (SHEL.L) , opens new tab, Sk Energy (SKENGG.UL) y Vitol (VITOLV.UL), así como las japonesas Itochu Corporation (8001.T) , opens new tab, Mitsubishi (8058.T) , opens new tab, y Sumitomo Corporation (8053.T) , opens new tab, informó el canal en un comunicado. "Teníamos el cuarto lleno de personas interesadas en este tema", dijo Vásquez sobre la reunión y añadió que el siguiente paso será un proceso de preselección. El canal prevé unos beneficios de 3,500 millones de dólares en el año fiscal que finaliza en septiembre, en línea con los resultados del año anterior, según Vásquez. Se espera que la consolidación del tonelaje de carga mediante la recepción de buques más grandes compense la reducción del tráfico hacia finales de año. "Ha habido una estacionalidad diferente, mucha de la carga que está llegando ahora mismo a Estados Unidos es la carga que nosotros esperábamos en el primer trimestre del próximo año", dijo. https://www.reuters.com/markets/commodities/canal-de-panam-inicia-proceso-seleccin-para-construccin-de-gasoducto-comunicado-2025-09-18/

2025-09-18 19:03

Sept 18 (Reuters) - U.S. officials consistently failed to comply with federal regulations when reviewing applications for wind and solar projects on public lands, according to a report by an independent government watchdog published on Thursday. An audit by the Interior Department's Office of Inspector General found that the Bureau of Land Management did not assess most applicants' technical and financial ability to develop renewable energy projects, maintained incomplete files and failed to screen applications in a timely manner. Sign up here. President Donald Trump has sought to stymie development of wind and solar projects on federal lands, including by reviewing wind permitting and leasing practices and requiring additional scrutiny of renewable projects on federal lands. The IG's office said its report had been initiated prior to those actions, but that its work may be useful to Interior's efforts to assess agency practices and develop new processes. The BLM, which is part of the Interior Department, manages 245 million acres of public lands, mostly in Western states. The Interior watchdog blamed a lack of internal controls and training for the weaknesses and said they put the agency at risk of awarding permits to unqualified entities and prevented it from collecting rents and fees. The report analyzed 258 right-of-way applications for wind and solar projects on federal lands between 2017 and 2023. A right of way is a permit to use public lands for a specific purpose. An inspector general is an independent position that conducts audits and investigations into allegations of government waste, fraud and abuse of power. Trump fired the Interior Department's inspector general of five years right after taking office earlier this year. Caryl Brzymialkiewicz, who had been deputy inspector general, is now the acting IG. The report included 10 recommendations to improve BLM's internal controls. The BLM agreed with nine of them. https://www.reuters.com/legal/litigation/audit-found-weaknesses-review-wind-solar-projects-us-public-lands-2025-09-18/

2025-09-18 18:28

Sept 18 (Reuters) - U.S. Treasury Secretary Scott Bessent said he views China's yuan valuation as a bigger problem for Europe than the United States, as the currency has risen against the dollar but has declined against the euro. Bessent said in an interview with Reuters and Bloomberg in Madrid, following U.S.-China talks on trade and TikTok there this week, that U.S. tariffs on Chinese imports were bringing down U.S. trade deficits, adding that Chinese trade with the U.S. was down 14% this year but up 6.9% with Europe. Sign up here. Asked whether he spoke to Chinese Vice Premier He Lifeng about opportunistic devaluation of the yuan, Bessent said on Monday, "Well, they haven't done it to the U.S. The RMB is actually stronger this year versus the dollar. Now it's at an all-time low versus the euro, which is a problem for the Europeans." The yuan, also known as the renminbi or RMB, has hit record lows of more than 8.4 to the euro in recent months compared to 7.5 at the start of 2025. Trade and currency experts say this is aiding a flood of Chinese exports to Europe that is fueling the European Union's trade deficit with China and agitating trade tensions between Brussels and Beijing. At the same time, the yuan has risen slightly against the dollar this year, from 7.3 to the dollar in January to 7.1. Asked whether the yuan's decline was due to manipulation, Bessent said: "It's a closed currency. So they manage the level." https://www.reuters.com/world/china/bessent-says-chinas-yuan-rate-is-bigger-problem-europe-than-us-2025-09-18/