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Powell signals possible Fed rate cut, faces Trump pressure

Summary

  • Powell signals Fed could cut rates at September meeting
  • Move risks appearing as a response to Trump’s pressure
  • Fed must weigh persistent against growth outlook
  • Decision seen as one of Powell’s toughest challenges yet

WASHINGTON (AP) — Now that Chair has signaled that the central bank could soon cut its key interest rate, he faces a new challenge: how to do it without seeming to cave to the ‘s demands.

For months, Powell has largely ignored President ‘s constant hectoring that he reduce borrowing costs. Yet on Friday, in a highly-anticipated speech, Powell suggested that the Fed could take such a step as soon as its next meeting in September.

It will be a fraught decision for the Fed, which must weigh it against persistent inflation and an economy that could also improve in the second half of this year. Both trends, if they occur, could make a cut look premature.

Trump has urged Powell to slash rates, arguing there is “no inflation” and saying that a cut would lower the government’s interest payments on its $37 trillion in debt.

Powell, on the other hand, has suggested that a is likely for reasons quite different than Trump’s: He is worried that the economy is weakening. His remarks on Friday at an economic symposium in Grand Teton National Park in Wyoming also indicated that the Fed will move carefully and cut rates at a much slower pace than Trump wants.

Powell pointed to economic growth that “has slowed notably in the first half of this year,” to an annual rate of 1.2%, down from 2.5% last year. There has also been a “marked slowing” in the demand for workers, he added, which threatens to raise unemployment.

Still, Powell said that have started to lift the price of goods and could continue to push inflation higher, a possibility Fed officials will closely monitor and that will make them cautious about additional rate cuts.

The Fed’s key short-term interest rate, which influences other borrowing costs for things like mortgages and auto loans, is currently 4.3%. Trump has called for it to be cut as low as 1% — a level no Fed official supports.

However the Fed moves forward, it will likely do so while continuing to assert its longstanding independence. A politically independent central bank is considered by most economists as critical to preventing inflation, because it can take steps — such as raising to cool the economy and combat inflation — that are harder for elected officials to do.

There are 19 members of the Fed’s interest-rate setting committee, 12 of whom vote on rate decisions. One of them, Beth Hammack, president of the Federal Reserve’s Cleveland branch, said Friday in an interview with The Associated Press that she is committed to the Fed’s independence.

“I’m laser focused … on ensuring that I can deliver good outcomes for the for the public, and I try to tune out all the other noise,” she said.

She remains concerned that the Fed still needs to fight stubborn inflation, a view shared by several colleagues.

“Inflation is too high and it’s been trending in the wrong direction,” Hammack said. “Right now I see us moving away from our goals on the inflation side.”

Powell himself did not discuss the Fed’s independence during his speech in Wyoming, where he received a standing ovation by the assembled academics, economists, and central bank officials from around the world. But Adam Posen, president of the Peterson Institute for International Economics, said that was likely a deliberate choice and intended, ironically, to demonstrate the Fed’s independence.

“The not talking about independence was a way of trying as best they could to signal we’re getting on with the business,” Posen said. “We’re still having a civilized internal discussion about the merits of the issue. And even if it pleases the president, we’re going to make the right call.”

It was against that backdrop that Trump intensified his own pressure campaign against another top Fed official.

Trump said he would fire Fed Governor Lisa Cook if she did not step down from her position. Bill Pulte, a Trump appointee to head the agency that regulates mortgage giants Fannie Mae and Freddie Mac, alleged Wednesday that Cook committed mortgage fraud when she bought two properties in 2021. She has not been charged.

Cook has said she would not be “bullied” into giving up her position. She declined Friday to comment on Trump’s threat.

If Cook is somehow removed, that would give Trump an opportunity to put a loyalist on the Fed’s governing board. Members of the board vote on all interest rate decisions. He has already nominated a top White House economist, Stephen Miran, to replace former governor Adriana Kugler, who stepped down Aug. 1.

Trump had previously threatened to fire Powell, but hasn’t done so. Trump appointed Powell in late 2017. His term as chair ends in about nine months.

Powell is no stranger to Trump’s attacks. Michael Strain, director of economic policy studies at the American Enterprise Institute, noted that the president also went after him in 2018 for raising interest rates, but that didn’t stop Powell.

“The president has a long history of applying pressure to Chairman Powell,” Strain said. “And Chairman Powell has a long history of resisting that pressure. So it would be odd, I think, if on his way out the door, he caved for the first time.”

Still, Strain thinks that Powell is overestimating the risk that the economy will weaken further and push unemployment higher. If inflation worsens while hiring continues, that could force the Fed to potentially reverse course and increase rates again next year.

“That would do further damage to the Fed’s credibility around maintaining low and stable price inflation,” he said.

European postal services halt U.S. package shipments

Summary

  • Germany, Denmark, Sweden and Italy suspend U.S. shipments
  • France, Austria and UK to follow in coming days
  • New begin Aug. 29
  • Packages over $800 subject to ; small items exempt

ATHENS, Greece (AP) — The end of an exemption on tariff duties for low-value packages coming into the United States is causing multiple international postal services to pause shipping as they await more clarity on the rule.

The exemption, known as the “ de minimis” exemption, allows packages worth less than $800 to come into the U.S. duty free. A total of 1.36 billion packages were sent in 2024 under this exemption, for goods worth $64.6 billion, according to data from the U.S. Customs and Border Patrol Agency.

It is set to expire on Friday. On Saturday, postal services around Europe announced that they are suspending the shipment of many packages to the United States amid confusion over new import duties.

Postal services in Germany, Denmark, Sweden and Italy said they will stop shipping most merchandise to the U.S. effective immediately. France and Austria will follow on Monday.

The U.K.’s Royal Mail said it would halt shipments to the U.S. on Tuesday to allow time for those packages to arrive before duties kick in. Items originating in the United Kingdom worth over $100 — including gifts to friends and family — will incur a 10% duty, it said.

“Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out,” DHL, the largest shipping provider in Europe, said in a statement.

The company said starting Saturday it “will no longer be able to accept and transport parcels and postal items containing goods from business customers destined for the US.”

A trade framework agreed on by the U.S. and the European Union last month set a 15% tariff on the vast majority of products shipped from the EU. Packages under $800 will now also be subject to the tariff.

The U.S. duty-free exemption for goods originating from China ended in May as part of the ‘s efforts to curb American shoppers from ordering low-value Chinese goods. The exemption is being extended to shipments from around the world.

Many say they are pausing deliveries now because they cannot guarantee the goods will enter the U.S. before Aug. 29. They cite ambiguity about what kind of goods are covered by the new rules, and the lack of time to process their implications.

Postnord, the Nordic logistics company, and Italy’s postal service announced similar suspensions effective Saturday.

“In the absence of different instructions from US authorities … Poste Italiane will be forced, like other European postal operators, to temporarily suspend acceptance of all shipments containing goods destined for the United States, starting August 23. Mail shipments not containing merchandise will continue to be accepted,” Poste Italiane said Friday.

Shipping by services such as DHL Express remains possible, it added.

Björn Bergman, head of PostNord’s Group Brand and Communication, said the pause was “unfortunate but necessary to ensure full compliance of the newly implemented rules.”

In the Netherlands, PostNL spokesperson Wout Witteveen said the Trump administration is pressing ahead with the new duties despite U.S. authorities lacking a system to collect them. He said that PostNL is working closely with its U.S. counterparts to find a solution.

“If you have something to send to America, you should do it today,” Witteveen told The Associated Press.

Austrian Post, Austria’s leading logistics and postal service provider, stated that the last acceptance of commercial shipments to the U.S., including Puerto Rico, will take place Tuesday.

France’s national postal service, La Poste, said the U.S. did not provide full details or allow enough time for the French postal service to prepare for new customs procedures.

″Despite discussions with U.S. customs services, no time was provided to postal operators to re-organize and assure the necessary computer updates to conform to the new rules,″ it said in a statement.

PostEurop, an association of 51 European public postal operators, said that if no solution can be found by Aug. 29 all its members will likely follow suit.

Keurig Dr Pepper buys Peet’s for $18 billion and plans split into coffee and beverage companies

Summary

  • to acquire for $18B
  • Company will split into coffee and beverage businesses
  • Coffee unit projected to generate $16B in sales
  • Beverage unit to focus on Dr Pepper, 7Up, Canada Dry and drinks

Less than a decade after their merger, Keurig and Dr Pepper plan to become separate companies again.

Keurig Dr Pepper said Monday it is buying the owner of Peet’s Coffee for $18 billion (15.7 billion euro). Then it will break itself in two, with one company selling coffee and the other selling cold beverages like Snapple, Dr Pepper, 7UP and energy drinks.

The agreement unwinds the 2018 merger of Keurig and Dr Pepper. Shares of Keurig Dr Pepper fell 11% in afternoon trading Monday.

Investors were concerned about the company’s plan to finance the acquisition with a mix of cash and debt. S&P Global placed Keurig Dr Pepper on a credit watch with negative implications Monday, saying it was concerned about the increase in debt and the complexity of the two-step transaction.

Keurig Dr Pepper CEO Timothy Cofer said the separate coffee and beverage businesses would be more nimble and better able to focus on growth opportunities in their own markets.

“Following the separation, each stand-alone entity will lead its industry with a sharp strategic focus and with operating models that are finely calibrated to their unique categories and markets,” Cofer said Monday during a conference call with investors.

The combination with Peet’s parent JDE Peet’s, which is based in Amsterdam, significantly expands Keurig’s presence beyond North America, where it’s known for its single-serve coffee machines. JDE Peet’s owns the brands L’OR, Jacobs, Douwe Egberts, Kenco, Pilao, OldTown, Super and Moccona.

Cofer said the combined coffee business will generate $16 billion in annual net sales. The combined buying will help Keurig and Peet’s compete with other large coffee players like Nestle and Starbucks, especially as rising demand and poor weather conditions push coffee prices near record highs.

Cofer said the coffee company will also be able to focus on meeting demand, especially in developing markets. Around 40% of the company’s sales will come from North America, 40% from Europe and 20% from emerging markets.

“We like, and I like, the coffee category. Why? It’s huge. It’s ubiquitous,” Cofer said. “Obviously, we’ve up to this point focused on North America. But the global data shows coffee is consistently growing on a volume basis above population.”

The merger could also help the company cushion the impact of . President imposed a 50% tariff this summer on most imports from Brazil — the world’s leading coffee producer — for an investigation of its former president, Jair Bolsonaro, a Trump ally.

In a conference call with investors in July, Cofer said the impact of would be “more prominent” in the second half of this year.

Meanwhile, sales of Dr Pepper’s traditional soft drinks have been slowing as health-conscious consumers look for new alternatives. The newly formed beverage company, with $11 billion in annual sales in the U.S. and Mexico, can continue to pivot to its faster-growing beverages, like the energy drinks Ghost and C4 and the hydration drink Electrolit.

The companies said they expect to save around $400 million over three years because of the merger, which is expected to close in the first half of 2026.

Once the two companies are separated, Cofer will become CEO of the cold beverage business, which will be based in Frisco, Texas. Keurig Dr Pepper’s chief financial officer, Sudhanshu Priyadarshi, will lead the coffee business, which will be located in Burlington, Mass. Its international headquarters will be in Amsterdam.

The deal is the latest big maneuver in the food and , which has been trying to keep up with changing consumer tastes.

In 2023, Kellogg Co. split into two companies. Mars bought Kellanova, the owner of snack brands like Pringles, last year. Italian confectioner Ferrero announced in July that it planned to buy WK Kellogg, the cereal company.

Struggling Kraft Heinz has also been considering a split.

Companies have also been snapping up fast-growing brands. Keurig Dr Pepper’s rival PepsiCo acquired the prebiotic soda brand Poppi in March to gain a foothold in the fast-growing functional beverage space. And in July, Keurig Dr Pepper acquired Dyla, a maker of powdered drink mixes and water enhancers.

UPDATES: Adds byline. Adds S&P Global action. Adds details on tariffs.

Chesterfield planners approve $2.5B+ nuclear fusion plant

SUMMARY:

Commonwealth Fusion Systems’ planned $2.5 billion-plus Chesterfield County facility, which could be the world’s first grid-scale commercial fusion plant, is advancing through the county’s approval process.

The county’s planning commission unanimously approved a conditional use permit for the 400-megawatt facility, dubbed ARC, during its Aug. 19 meeting. The nuclear fusion power plant is slated to be built on a roughly 94-acre property at 1201 Battery Brooke Parkway in the James River Industrial Center. Dominion Energy owns the site, but — a Massachusetts-based fusion energy company that spun out of research done at the Massachusetts Institute of Technology — has signed an option-to-lease agreement for the site.

Commission Vice Chair Gib Sloan said he was “very appreciative” that CFS chose Chesterfield for the project: “They have chosen us to be a place to create something groundbreaking that could benefit the rest of the globe. So, when I think about where we came from, where we are and where we can be, I think it’s just freaking awesome.”

The fusion plant’s permit now heads to the county’s board of supervisors on Sept. 17 for approval.
During a public hearing before the commission’s vote, several people voiced support for the project, citing potential economic benefits and educational opportunities.

Lane Carasik, an assistant professor at Virginia Commonwealth University, said the fusion plant can “put Chesterfield on the map” and “make it the epicenter of future fusion energy.” He said there are learning opportunities for VCU students to communicate with the plant’s scientists and engineers.

Chesterfield Chamber President Karen Webb, who supported the project, praised CFS for engaging with the community in the planning process and addressing concerns they may have had about the plant.

One resident, however, spoke against the project, citing concerns about it generating nuclear waste.

The project’s application says, “Fusion energy is considered inherently safe because it does not involve chain reactions or decay heat and therefore cannot melt down, and generates no high-level, long-lived radioactive waste.”

Chesterfield’s economic development director, Garrett Hart, previously said the plant will likely cost more than $2.5 billion. During a presentation on Tuesday, attorney Ann Neil Cosby of firm GreeneHurlocker, representing CFS, said that CFS would “finance, own and safely operate this power plant.”

CFS plans to begin construction in the late 2020s and anticipates that ARC will start generating carbon-free power for the grid in the early 2030s.

ARC will use magnetic fields in the fusion process. Two forms of hydrogen — deuterium and tritium — fuse, creating helium and releasing neutrons. A “molten salt liquid ‘blanket’ surrounding the plasma will capture the energy of the neutrons in the form of heat,” according to CFS’ permit application. The molten salt then circulates through heat exchangers — systems that transfer heat between fluids — to produce steam, which turns a turbine connected to an generator.

Earlier this summer, signed an agreement to buy 200 megawatts of electricity (half the facility’s expected power output) from the facility. Google will also have the option to offtake power from future ARC plants.

Spun out of MIT in 2018, CFS has more than 1,000 employees, according to Cosby. It has raised more than $2 billion from high-profile investors including Jeff Bezos, Bill Gates, Tiger Global Management, Khosla Ventures and Lowercarbon Capital. It is one of more than 40 companies currently developing fusion technologies.

Luminoah wins Virginia Startup World Cup

Charlottesville-based medical technology company won first place at the Virginia on Aug. 21 and will now advance to the global finals in San Francisco this October.

The competition, organized by California-based global firm Pegasus Tech Ventures and co-hosted locally by nonprofit and the government, drew 10 finalists from across Virginia to pitch at the Sandler Center for the Performing Arts in Virginia Beach.

executive launched Luminoah in 2020, following a personal crisis. In 2019, Piper’s 3-year-old son, Noah, was diagnosed with a rare brain tumor that left him dependent on enteral nutrition, also known as tube feeding. Unfortunately, that involved him being tethered to an IV pole or carrying a bulky backpack. Wanting a better solution, Piper launched Luminoah to reinvent care for patients nationwide.

The company’s signature innovation is a small, lightweight and portable enteral pump that’s compatible with smartphones and able to track nutritional intake. Piper said the product “feels more like a smartphone than medical equipment” and will allow children to attend school and adults to spend time with friends instead of being fed on a bedside.

“This is going to completely change the way people live,” he said.

The winner of the global finals on Oct. 17 will win a $1 million investment prize.

Zack Miller, an affiliate of Innovate who helped organize the Virginia competition, said that more than 100 Virginia applied for this year’s event. A panel of judges with experience in judging startups narrowed the field to 10 finalists. On Aug. 21, each of those finalists delivered a 4-minute pitch on the problem they are trying to address, their company’s solution, and the traction they have achieved.

Miller said the event is beneficial even for those who don’t win, as it offers exposure and fundraising connections. Last year’s Virginia winner, ivWatch of Newport News, went on to place third worldwide, while other 2024 Virginia participants collectively raised over $24 million after competing.

For Piper, advancing to the global competition was “extremely humbling.” While his son is now cancer-free, he hopes his product can benefit millions of other patients. Luminoah is targeting Food and Drug Administration clearance in early 2026 and has plans to expand globally.

“I’m just proud to represent the commonwealth in this competition,” Piper said. “Let’s take home the big prize here at the World Cup in October.”

Virginia aims to boost university startups

SUMMARY:

  • , Virginia’s six R1 universities launching initiative to double spinning out
  • Lab-to-Launch initiative includes standardized agreement favorable to founders
  • Program also offers opportunities for private sector involvement

A new initiative between Virginia Innovation Partnership Corp. and Virginia’s six Research 1 (R1) universities aims to double the number of startups coming from the latter annually.

The Lab-to-Launch initiative aims to help technology breakthroughs quickly enter the marketplace, according to a news release from the governor’s office this month. The initiative’s components will be launching throughout the upcoming school year.

Lab-to-Launch has two core pillars, said VIPC President and CEO : The first is creating a standardized fast-track license agreement to commercialize university research. The other is expanding private sector collaboration with Virginia university commercialization.

“Over the next three years,” he said, “we think across all … six R1s, [Lab-to-Launch] could literally double the number of startups that launch out of universities.”

Virginia’s six R1 universities are , Old Dominion University, the University of Virginia, Virginia Commonwealth University, Virginia Tech and William & Mary. The highest research activity classification in the Carnegie Classification of Institutions of , R1 indicates high research activity as measured by the number of research/scholarship doctorates awarded and the amount spent on .

“All the universities recognize this is an important initiative, a huge opportunity [that could] have transformative impact, and we are locking arms. We are locking arms to plant a flag on the map for Virginia here that is really going to differentiate [them] from every other university out there,” Benevento said.

The Virginia Fast-Track License will launch during the upcoming school year, Benevento said. It’s expected to reduce the time it takes for new products to enter the market from about six to 12 months to one to three months by standardizing financial terms in university intellectual property license agreements with founders.

“By basically standardizing the agreement and its key terms, that streamlines that whole IP licensing process to make it easier and faster, more transparent,” and likely less costly, as a faster process could reduce administrative costs, Benevento said.

Under the Virginia Fast-Track License, university tech transfer offices will have less than 3% equity in startups and a less than 3% royalty rate of future sales.

By comparison, the Carolina Express Exclusive License Agreement offered by The University of North Carolina at Chapel Hill takes 5% equity up to a startup’s first $2 million raised and takes a 2%, 3% or 5% royalty depending on the product or service.

A 2022 database analysis including data from Columbia University, Harvard College and Stanford University from Spinout, which compiles data for university inventors, found that the included U.S. universities took an average 5.9% equity rate upon founding.

According to a 2018 analysis of eight U.S. research universities (Harvard College, MIT, Stanford University, Ohio State University, University of Arizona, Texas A&M University, University of Wisconsin and University of Kansas) from ktMINE, an IP transactions data and analytics provider, the eight universities received average royalties of between 3.5% and 4.6%.

The license’s founder-friendly standardized terms will lower the barriers for existing faculty researchers to bring research breakthroughs into the market, attract talent to Virginia universities, and facilitate early-stage capital investment, Benevento said.

“This will plant a flag for Virginia and our leading world-class research universities that Virginia is the best place to conduct research and to translate breakthrough discoveries and technologies into the marketplace, where they can then have a huge impact on society and on people’s lives,” he said.

For investors, the standardized licensing process provides speed and certainty, making the involved startups more appealing investments, Benevento said.

Startups that spin off from universities using the Virginia Fast-Track License are eligible for an up to $50,000 grant from VIPC toward upfront out-of-pocket university commercialization costs.

The program also intends to grow private sector collaboration with university commercialization, helping connect talent, capital and data from the private sector with university researchers via several means.

Regarding talent, Lab-to-Launch will start an entrepreneur-in-residence program to connect and executives with business experience to university researchers and inventors with technical knowledge. Each university can have multiple entrepreneurs-in-residence.

As part of Lab-to-Launch, universities will create digital databases with online catalogs to search university IP, making data available online to potential investors and interested entrepreneurs.

The program will also evaluate potential partnership opportunities using VIPC’s Virginia Invests program, through which VIPC invests in fund managers that run early-stage funds. VIPC will explore potential public-private partnership opportunities and potential connections, particularly with out-of-state venture capital funds that could be drawn into the Virginia startup ecosystem.

University partners will also share best practices. VIPC will measure statewide university commercialization outcome metrics against historical baselines and national peers.

“Virginia is home to world-class research university institutions and with Lab-to-Launch and the Virginia Fast-Track License, we are moving at the speed of business to accelerate commercialization pathways for university technology startups,” Gov. Glenn Youngkin said in a statement. “Virginia is leading the way, and I look forward to seeing the transformative discoveries that go from ‘‘ and enhance people’s lives, not only in Virginia but throughout the country.”

Trump says Intel agreed to give US a stake in its company

Summary

  • Trump says to give U.S. a 10% ownership stake
  • Deal follows Trump’s meeting with CEO Lip Bu Tan
  • Trump previously urged Tan to resign over
  • Official announcement expected later Friday

WASHINGTON (AP) — President said that Intel has agreed to give the a 10% stake in its business.

Speaking with reporters on Friday, Trump said the deal came out of a meeting last week with Intel CEO Lip Bu Tan — which came days after the president called for Tan to resign over his past ties to China.

“I said, I think it would be good having the United States as your partner,” Trump said. “He agreed, and they’ve agreed to do it.”

The official announcement is expected to come later Friday, according to a official who was not authorized to speak publicly ahead of an announcement and spoke on condition of anonymity.

What’s happening?

The has been in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel’s largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world’s largest economy.

Why would Trump do this?

In his second term, Trump has been leveraging his to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses.

Trump’s interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country’s dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence.

Didn’t Trump want Intel’s CEO to quit?

That’s what the president said August 7 in an unequivocal post calling for Intel CEO to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan’s past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an “amazing story.”

Why would Intel do a deal?

The company isn’t commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone’s 2007 debut.

Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year.

Would this deal be unusual?

Although rare, it’s not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM.

Would the government run Intel?

U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel’s business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration’s financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company’s chips.

What government grants does Intel receive?

Intel was among the biggest beneficiaries of the Biden administration’s CHIPS and Science Act, but it hasn’t been able to revive its fortunes while falling behind on construction projects spawned by the program.

The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program — money that Lutnick derided as a “giveaway” that would better serve U.S. taxpayers if it’s turned into Intel stock. “We think America should get the benefit of the bar

Consumer watchdog ends investigation into buy now, pay later company linked to Donald Trump Jr.

Summary

  • ends investigation into , tied to Trump Jr.
  • Agency calls earlier probe politically motivated
  • Credova offers buy now, pay later financing, including firearms
  • Public Square subsidiary has faced consumer complaints, settlements

WASHINGTON (AP) — The Consumer Financial Protection Bureau has dropped an investigation into a buy now, pay later company with close ties to President ‘s son , saying the investigation was conducted in a biased manner and based off politics.

The CFPB on Tuesday notified Credova Financial, a subsidiary of , where Trump Jr. is a board member and investor, that it was no longer under investigation. Public Square is a directory of businesses that sell American-made products, including financing for firearms and family pets, that market to conservative-leaning customers. Credova provides buy now, pay later services to Trump Jr.’s GrabAGun firearms marketplace, which went public this year.

The agency says the investigation, initiated during Democrat Joe Biden’s presidency, was politically motivated against firearms companies and Trump Jr. However, the company has a record of dozens if not hundreds of consumer complaints and settlements over state consumer protection violations.

The closure of the investigation also comes when the CFPB, a watchdog agency that helps oversee the nation’s banks and financial services companies, has been undoing rulemaking, dropping other cases and ending enforcement work that was done under previous administrations, including Trump’s first term.

The CFPB in Trump’s second term determined the Credova investigation “exemplifies the type of weaponization against disfavored industries and individuals” that Trump and the agency’s acting director, Russell Vought, are committed to ending, according to a letter sent to the chief counsel of Public Square Holdings. The CFPB during Biden’s term ratcheted up settlement demands on the company the day Trump Jr. joined Public Square’s board of directors, the letter said.

Former CFPB employees, from during Biden’s term, declined to speak about the decision, saying they’re not permitted to discuss investigations.

Previous claims against Credova

Michael Seifert, chairman and CEO of Public Square, said in a statement that the closure of the CFPB investigation “confirms the strength and integrity of our company and validates the trust our merchants and consumers place in us” and is ”a win for our entire company, our board, our customers, and a 2nd Amendment community that has seen years of government attempts to regulate businesses like ours out of existence.”

However, the firm had for years been accused of charging junk fees to customers or violating state consumer protection rules.

In 2021, Credova and another Nevada-based finance firm reached a settlement with the Massachusetts attorney general’s office to waive balances totaling more than $126,000 to resolve allegations they illegally leased dogs in violation of the Massachusetts Consumer Protection Act.

In January 2024, Credova and the California Department of Financial Protection and Innovation entered into a consent order to resolve allegations the firm failed to disclose potential third-party fees to consumers. As a result, Credova was required to pay a $50,000 penalty and disclose potential third-party convenience fees to consumers in the future.

There have also been more than 50 consumer complaints filed against Credova to the CFPB, a search of the database shows. Many of the complaints relate to debt collection practices.

A search of the Better Business Bureau Database shows 134 complaints have been filed against the company in the past three years, with 21 closed in the past 12 months. A review of many of those complaints relate to customers being charged undisclosed junk fees.

Trump Jr.’s ties to the company

Trump Jr. joined the board of directors for Public Square’s parent company, PSQ Holdings, in December 2024.

Andy Surabian, a spokesman for Trump Jr., said in a statement Trump Jr. “had nothing what so ever to do with this and it’s a classic cheap media tactic to imply otherwise when the AP knows that they have no evidence to the contrary.” Trump Jr. owns 697,403 shares in Public Square, which are worth roughly $1.1 million.

Donald Sherman, the executive director and chief counsel of Citizens for Responsibility and Ethics in Washington, said the CFPB’s dropping of the case against Credova is “emblematic of the toxic stew of corruption” associated with administration officials assisting allies.

“It’s not just that this particular company has ties to the president’s son, who has along with his father sought to monetize and profit off of the presidency at every step of the way,” Sherman said. “It’s also that this administration has taken aggressive actions to use every aspect of federal law enforcement to benefit its perceived political allies and harm its enemies.”

Canada will match US tariff exemptions under USMCA trade pact, Prime Minister Carney says

Summary

  • Canada ends retaliatory on U.S. goods
  • Move aligns with U.S. exemptions under trade deal
  • Prime Minister says it resets trade talks
  • USMCA is up for review in 2026

TORONTO (AP) — Canada is dropping to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada , Prime Minister Mark Carney announced Friday.

Carney said Canada will include the carve-out that the U.S. has on Canadian goods under the 2020 free trade deal that shields the vast majority of goods from the punishing duties.

“Canada currently has the best trade deal with the United States. And while it’s different from what we had before, it’s still better than that of any other country,” Carney said.

Carney and U.S. President spoke on the phone Thursday, and Carney met with his Cabinet on Friday before making the announcement.

“We had a very good call,” Trump said Friday in the Oval Office. “We are working on something. We want to be very good to Canada. I like Carney a lot. I think he’s a very good person.”

“I am fighting for the United States, and Canada and Mexico have taken a lot of our business over the years,” Trump said.

Carney said Trump told him that lifting the tariffs would reset trade negotiations.

The USMCA is up for review in 2026, and Carney called the trade pact a unique advantage for Canada at a time when it is clear that the U.S. is charging for access to its market.

Carney said the commitment of the U.S. to the core of USMCA means that over 85% of Canada-U.S. trade continues to be free of tariffs. He said the U.S. average tariff rate on Canadian goods is 5.6% and remains the lowest among all its trading partners.

Canadian and Mexican companies can claim preferential treatment under the USMCA.

Canada and China are the only countries that have retaliated against Trump in his trade war. Canada imposed 25% tariffs on a long list of American goods in March, including oranges, alcohol, clothing and shoes, motorcycles and cosmetics.

Former Prime Minister Justin Trudeau initially put on retaliatory tariffs in response to , but before the U.S. tariffs were applied the exempted goods covered by the free trade deal.

Most imports from Canada and Mexico are still protected by the USMCA, but U.S. Commerce Secretary Howard Lutnick has said, “I think the president is absolutely going to renegotiate USMCA.”

Preserving the free trade pact will be critical for Canada and Mexico. More than 75% of Canada’s exports go to the U.S. while more than 80% of Mexico’s exports go there.

Trump has announced some sector-specific tariffs that do apply for Canada despite the USMCA — known as 232 tariffs — which are having an impact on the Canadian economy. There is a 50% tariff on steel and aluminum imports, for example.

“Canada and the United States have reestablished free trade for the vast majority of our goods,” Carney said. “Canada will retain our tariffs on steel, aluminum and autos as we work intensively to resolve the issues there.”

Carney previously rescinded Canada’s plan to tax U.S. technology firms after Trump said he was suspending trade talks with Canada over those plans, which he called “a direct and blatant attack on our country.”

The prime minister disputed any notion that Canada is appeasing Trump, noting that Canada is matching what the U.S. is doing.

“The president and I had a long conversation,” Carney said. “There is a review of the in the spring. We’re starting our preparations.”

Lana Payne, president of Unifor, Canada’s largest private sector union, characterized Carney’s announcement as Canada backing down, and said the country shouldn’t back down unless the U.S. drops all punitive tariffs.

“Trump’s attacks on auto, steel, aluminum, and forestry sectors are hurting Canadian workers in real time,” she posted on social media. “Walking back counter-tariffs isn’t an olive branch. It only enables more U.S. aggression.”

U.S. Department of Education finds GMU violated civil rights law

SUMMARY:

George Mason University has been found in violation of federal civil rights law, the U.S. Department of Education announced Friday, laying blame on President Gregory Washington’s shoulders.

The public university, Virginia’s largest by enrollment, violated Title VI of the Civil Rights Act of 1964 by “illegally using race and other immutable characteristics in university practices and policies, including hiring and promotion,” the DOE said in a news release, citing Washington’s policies that the federal department sees as biased toward people of color and discriminatory against white employees.

“In 2020, university President Gregory Washington called for expunging the so-called ‘racist vestiges’ from ‘s campus. Without a hint of self awareness, President Washington then waged a universitywide campaign to implement unlawful DEI policies that intentionally discriminate on the basis of race. You can’t make this up,” Acting Assistant Secretary for Civil Rights Craig Trainor said in a statement. “Despite this unfortunate chapter in Mason’s history, the university now has the opportunity to come into compliance with federal civil rights laws by entering into a resolution agreement with the Office for Civil Rights.”

To resolve the matter — and maintain federal funding at George Mason — Washington is required to “personally issue a statement to all university students and employees that GMU will conduct all recruitment, hiring, promotion and tenure decisions in compliance with Title VI, and disseminate information to the campus community explaining how to submit a discrimination complaint,” and that the statement must include a personal apology by Washington.

The university also must review its policies and revise documents regarding hiring and promotions to comply with Title VI, as well as conduct annual training of employees involved in recruitment, hiring, promotion and tenure decisions, and maintain all records necessary to demonstrate compliance with an agreement.

The DOE has given George Mason 10 days to voluntarily resolve the violations.

It is not clear if the university is still under investigation for allegedly not protecting Jewish students and staff from antisemitism, the subject of a July 1 probe by the DOE’s Office of Civil Rights. The DOE’s press office did not immediately respond to a request for information. The Title VI probe was opened July 10, becoming the second federal investigation into Mason.

The Department of Justice’s civil rights division also is conducting two investigations into George Mason employment practices that the claims may be discriminatory to benefit women and people of color.

Critics, including Virginia Democratic lawmakers and George Mason faculty members, say that the university and Washington himself are under attack by the and have accused the federal government of overreach in an attempt to drive Washington out of the presidency.

The George Mason Board of Visitors issued a statement Friday addressing the Department of Education’s finding of violations: “The board is reviewing the specific resolution steps proposed by the Department of Education. We will continue to respond fully and cooperatively to all inquiries from the Department of Education, the Department of Justice and the U.S. House of Representatives and evaluate the evidence that comes to light. Our sole focus is our fiduciary duty to serve the best interests of the university and the people of the commonwealth of Virginia.”

Washington has not issued a public statement as of Friday afternoon about the DOE finding, and the university referred Virginia Business to the BOV’s statement when asked for comment.

In addition to the four federal investigations, Washington has been called to testify before a congressional committee controlled by Republicans. He survived a potential ouster at the Aug. 1 university board meeting where board members, all appointed by Republican Gov. Glenn Youngkin, discussed Washington’s job performance in closed session. Instead, Washington received a 1.5% raise.

The university’s chapter of the American Association of University Professors, which has been critical of the federal government’s investigations and the university’s board of visitors, sent out a statement that “categorically condemns” both the Office of Civil Rights’ findings and the proposed remedy. The statement calls for George Mason’s board to “resist the Trump administration’s pressure campaign” and defend the university’s values.

“From the beginning, the purpose of this investigation has clearly been to provide a pretext for displacing GMU’s current leadership with the political allies of Gov. Youngkin and the Trump administration,” the statement says. “It also seems abundantly clear that the OCR’s politicized investigation is only one small part of the Trump administration’s larger project to bring American under the administration’s direct political and ideological control.”