Patrick W. Watson

Fed Governor Kugler is resigning, giving Trump a nominee on committee that sets interest rates Her resignation now paves the way for Trump to put his own nominee in for the Board of Governors.

Prediction: Trump will nominate someone "reliable" to fill this Fed opening within days.

No matter how unqualified the nominee may be, the Senate GOP will ram them through confirmation so they will be there for the September FOMC meeting.

There's an untold story report behind Kugler's early departure. I'm guessing someone arranged a deal she couldn't refuse. Others may get similar offers.

Remember last year when Republicans were demanding Biden tone it down and not start WW3?

It’s believable but needs more context.

Combine Q1 and Q2 and strip out import/inventory distortions and first half growth was about 1.2% annualized. A big slowdown from 2024 pace.

The bigger tariff impact is still coming, too.

The "next three years" part matters, too. Will the new LNG terminals that would enable all this be ready before 2028?

To the extent any "deal" exists here, it consists of Trump surrendering to Tokyo so he can claim he made a deal.

Letting US companies export vehicles to Japan duty-free is meaningless. Japanese consumers don't want Ford F-150s or Cadillac Escalades.

"Cracks" are widening because without Congress involved Trump can't make permanent agreements. Other governments know this.

AI saves tech firm $100 million in headcount costs as job threat looms Artificial intelligence is a boon for margins but a red flag for future job seekers.

Remember when CEOs would call themselves "job creators?" That's about to reverse. Growing your human headcount will be seen as management failure.
www.axios.com/2025/07/24/a...

In Texas we call it “summer.” 🤪

AI is reinforcing the dominance of English in the workplace Technology will make the world’s most spoken language more valuable, but speaking a more obscure one has advantages

There's no *economic* reason the world needs more than one language. I suspect English will be it within a century or two. But it will be a big social and cultural loss.

“Too Late,” and the Fed, are choking out the housing market with their high rate, making it difficult for people, especially the young, to buy a house. He is truly one of my worst appointments. Sleepy Joe saw how bad he was and reappointed him anyway - And the Fed Board has done nothing to stop this “numbskull” from hurting so many people. In many ways the Board is equally to blame! The USA is Rockin’, there is VERY LOW INFLATION, and we deserve to be at 1%, saving One Trillion Dollars a year on Interest Costs. I can’t tell you how dumb Too Late is - So bad for our Country!

OLD: I only hire the best people

NEW: He is truly one of my worst appointments

He may try. I suspect he would reverse course upon seeing the effect it has on his own money.

Trump tells Texas Republicans to redraw the state congressional map to help keep House majority President Donald Trump is pushing Republicans in Texas to redraw the state's congressional maps to help ensure the party keeps its majority in the U.S.

Very good chance this will happen. And it's one reason Trump doesn't seem too worried about losing the House in 2026.

Slowly dawning on them that you can’t back out after selling your soul to the devil.

Dissecting the TACO Donald Trump wants the highest tariff rates the economy can handle. He’ll keep probing until markets stop him.

This whole “TACO” idea doesn’t fit how Trump works. He doesn't chicken out. He pushes until something stops him.

Markets are no longer doing it and nothing else can. Which probably means tariffs are headed much higher.

Yipes

Charlie Kirk demonstrates what happens when you sell your soul to the devil.

You give devil whatever he wants because you already surrendered all other options.

Chicago releases “Saturday in the Park” as a single today in 1972 — a song written when Robert Lamm visited Central Park, then returned to the band’s hotel “excited after seeing the steel drum players, the singers,” bandmate Walt Parazaider recalled.

“I said, ‘Man, it’s time to put music to this!'”

Building the case to fire Powell "for cause."

Read the Statesman article. Local agencies asked for state funding multiple times and were denied.

Could they have funded it locally? Maybe. But that doesn't let Abbott off the hook.

P.S. There's also been plenty of money for giant property tax cuts. Warning sirens for Kerr County? Nope, can't afford them.

Kerr County asked Texas to help pay for a flood warning system for 8 years. Can it happen now? Kerr County and the Upper Guadalupe River Authority have tried several times to get funding to upgrade flood alerts on the river, dating back to 2016.

Two facts:

1. Gov Abbott and his party spent billions defending the Texas border against people who want only to build homes and mow lawns.

Meanwhile,

2. Gov Abbott and his party couldn't be bothered to spend even a little bit to protect Texas children from deadly and well-known flood threats.

What, he needed yet another job?

I did a fun interview with John Stoehr. Read it here and check out his whole thread.

It’s not about perfume. It’s about having a plausible conduit for buying favors.

If you are a retailer who needs a government favor, here’s your chance. Just buy a few thousand bottles and the doors you need will magically open.

Man Who Kicked Customs Dog Is Turned Away at D.C. Airport, U.S. Says

I strongly support this particular deportation.

Remember when presidents would inspire Americans to greatness? Often hypocritically, of course, but it was important. That’s gone now.

Sunday morning matcha

Sorry you have to face this. The article mentions milk and cheese. Are those problems for you?