Tag Archives: President Elect Donald Trump

Hedge Fund billionaire Scott Bessent to lead Treasury Department

Trump pointing

Important Takeaways:

  • President-elect Donald Trump has tapped billionaire hedge fund manager and investor Scott Bessent to serve as Secretary of the Treasury, according to multiple reports.
  • Bessent is billed as a crypto-currency enthusiast and an advocate of deregulation. He will also be a key figure in using America’s economic power to support its diplomatic priorities.
  • He has advocated for his version of Japan’s “three arrows” plan as a focus for economic revitalization: 3% real growth, a deficit of 3% of GDP, and “3 million more oil barrels flowing a day from U.S. energy production.”
  • Following the trend set in other announcements this week, Bessent has been a Trump loyalist since his first term despite being an Al Gore fundraiser in 2000 and one of George Soros’s inner circle.

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Federal Reserve to cut interest rates by a quarter point

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Important Takeaways:

  • The Federal Reserve announced the second consecutive cut in its interest rate benchmark on Thursday, a move widely anticipated by investors.
  • The Fed said it will now target a range of 4.50 percent to 4.75 percent for the federal funds rate, the rate banks charge each other to borrow reserves, one-quarter of a point below the target announced in September.
  • This marks a moderated approach compared to the Fed’s earlier, sharper 50 basis point cut in September, reflecting a recalibration of monetary policy. The Fed’s decision to announce the larger rate cut in September, just weeks before the presidential election, was widely criticized by Republicans as creating the appearance of inappropriate politicization.
  • President-elect Donald Trump’s victory, coupled with expected Republican majorities in Congress, could set the stage for significant shifts in the economic landscape, with potential changes to taxes, spending, immigration, and trade policies on the horizon. This anticipated alignment in Washington has fueled a rally in stocks, with many investors expecting economic growth to be recharged by Trump’s policies.

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Britain, edging towards Trump, scolds Kerry over Israel

U.S. Secretary of State John Kerry delivers remarks on Middle East peace at the Department of State in Washington

By Guy Faulconbridge and Kate Holton

LONDON (Reuters) – Britain scolded U.S. Secretary of State John Kerry for describing the Israeli government as the most right-wing in Israeli history, a move that aligns Prime Minister Theresa May more closely with President-elect Donald Trump.

After U.S. President Barack Obama enraged Israeli Prime Minister Benjamin Netanyahu by refusing to veto a UN Security Council resolution demanding an end to Israeli settlement building, Kerry’s public rebuke of Israel has unsettled some allies such as Britain.

Amid one of the United States’ sharpest confrontations with Israel since the 1956 Suez crisis, Kerry said in a speech that Israel jeopardizeds hopes of peace in the Middle East by building settlements in the occupied West Bank and East Jerusalem.

While Britain voted for the UN resolution that so angered Netanyahu and says that settlements in the occupied territories are illegal, a spokesman for May said that it was clear that the settlements were far from the only problem in the conflict.

In an unusually sharp public rebuke of Obama’s top diplomat, May’s spokesman said that Israel had coped for too long with the threat of terrorism and that focusing only on the settlements was not the best way to achieve peace between Jew and Arab.

London also took particular issue with Kerry’s description of Netanyahu’s coalition as “the most right-wing in Israeli history, with an agenda driven by its most extreme elements.”

“We do not believe that it is appropriate to attack the composition of the democratically-elected government of an ally,” May’s spokesman said when asked about Kerry 70-minute speech in the State Department’s auditorium.

The U.S. State Department said it was surprised by the remarks from May’s office and said Kerry’s comments were in line with Britain’s own policy. It pointedly also thanked Germany, France, Canada, Jordan, Egypt, Turkey, Saudi Arabia, Qatar, the United Arab Emirates for support.

TRUMP AND MAY?

Britain has long cherished its so-called “special relationship” with the United States as a central pillar of its foreign policy, but May has struggled to build relations with Trump’s transition team.

Following his election, Trump spoke to nine other world leaders before he spoke to May while he caused astonishment in London when he suggested that Brexit campaigner Nigel Farage should be Britain’s ambassador to Washington.

By openly criticising Kerry, who will leave office in just weeks, May moves British policy closer to Trump than its other European allies such as Germany and France.

Trump has denounced the Obama administration’s treatment of Israel and promised to change course when he is sworn in on Jan. 20.

“We cannot continue to let Israel be treated with such total disdain and disrespect. They used to have a great friend in the U.S., but not anymore,” Trump said in a series of tweets. “Stay strong Israel, January 20th is fast approaching!”

Germany’s foreign minister, Frank-Walter Steinmeier, has come out in favour of the Kerry speech while France holds a Middle East conference next month in Paris.

But Australia has distanced itself from Obama’s stance on Israel, ABC reported.

Palestinian President Mahmoud Abbas said he was convinced peace with Israel was achievable but demanded that Israel halt settlement building before talks restarted.

ISRAEL

Netanyahu has been witheringly critical of Kerry’s speech. In a statement released shortly after it was delivered, Netanyahu accused Kerry of bias and said Israel did not need to be lectured to by foreign leaders.

Netanyahu said he looked forward to working with Trump.

Kerry “obsessively dealt with settlements”, Netanyahu said in his response, and barely touched “the root of the conflict – Palestinian opposition to a Jewish state in any boundaries.”

In Israel, Kerry’s speech has played into the hands of Israel’s far-right national-religious movement, led by Naftali Bennett, the education minister, who is in Netanyahu’s cabinet but very critical of Netanyahu and is trying to position himself as a future potential leader.

Bennett’s party, Jewish Home, wants to annexe large parts of the West Bank and openly opposes the creation of a Palestinian state. He is advocating for more settlements and the legalisation of outpost settlements, which even the Israeli government considers illegal.

“This [Obama] administation’s policy has left the Middle East up in flames,” Bennett said after Kerry’s speech. “The one free democracy has been thrown under the bus – and that’s Israel.”

(Additional reporting by Luke Baker; Editing by Angus MacSwan)

China warns U.S. against allowing stopover for Taiwan’s Tsai

Taiwan's President Tsai Ing-wen speaks on the phone with U.S. president-elect Donald Trump at her office in Taipei, Taiwan

By J.R. Wu

TAIPEI (Reuters) – Taiwan President Tsai Ing-wen will pass through the United States when she visits Latin America next month, the Taiwan Foreign Ministry said on Thursday, angering China which urged the United States to block any such stopover.

China is deeply suspicious of Tsai, who it thinks wants to push for the formal independence of Taiwan, a self-governing island that Beijing regards as a renegade province, ineligible for state-to-state relations.

Details of the stopovers will be disclosed before the end of this week, the ministry said.

China said Tsai’s intentions were clear and urged the United States not to let her in.

“We hope the U.S. can abide by the ‘one China’ policy…and not let her pass through their border, not give any false signals to Taiwan independence forces, and through concrete actions safeguard overall U.S. China relations and peace and stability in the Taiwan strait,” Hua Chunying, a Chinese Foreign Ministry spokeswoman, told a briefing in Beijing.

The transit details are being closely watched as Taiwan media has speculated Tsai will seek to meet President-elect Donald Trump’s transition team ahead of his January 20 inauguration.

Trump angered China when he spoke to Tsai this month in a break with decades of precedent and cast doubt on his incoming administration’s commitment to Beijing’s “one China” policy.

The United States, which switched diplomatic recognition from Taiwan to China in 1979, has acknowledged the Chinese position that there is only “one China” and that Taiwan is part of it.

China’s sole aircraft carrier, accompanied by several warships, sailed close to Taiwan this week, which followed on from air force exercises also close to Taiwan.

Chinese Defence Ministry spokesman Yang Yujun repeated that the drills were routine, but added that such drills did have Taiwan in mind.

“The military’s holding of exercises is beneficial to raising our ability to oppose Taiwan independence and protecting the country’s sovereignty and territorial integrity, and beneficial to protecting the peaceful development of cross-Taiwan Strait relations and peace and stability there,” he told reporters.

Tsai’s office earlier this month said she would visit Honduras, Nicaragua, Guatemala and El Salvador in that order. She will leave Taiwan on Jan. 7 and return on Jan. 15.

Taiwan had as many as 30 diplomatic allies in the mid-1990s, but now has formal relations with just 21, mostly smaller and poorer nations in Latin America and the Pacific and including the Vatican.

The American Institute in Taiwan, the de facto embassy of the United States, had no immediate comment on Tsai’s itinerary.

(Additional reporting by Jake Spring and Ben Blanchard in BEIJING; Editing by Nick Macfie)

U.S. electors expected to officially confirm Trump victory

U.S. President-elect Donald Trump speaks during a USA Thank You Tour event in Hershey, Pennsylvania, U.S

By David Morgan

WASHINGTON (Reuters) – The U.S. Electoral College is expected on Monday to officially select Republican Donald Trump as the next president in a vote that is usually routine but takes place this year amid allegations of Russian hacking to try to influence the election.

At meetings scheduled in every state and the District of Columbia, the institution’s 538 electors, generally chosen by state parties, will cast official ballots for president and vice president.

It is highly unlikely the vote will change the outcome of the Nov. 8 election, which gave the White House to Trump after he won a majority of Electoral College votes. The popular vote went to Democrat Hillary Clinton.

But the conclusion by U.S. intelligence agencies that Russia hacked into the emails of the Democratic National Committee in an attempt to sway the election for Trump has prompted Democrats to urge some electors not to vote as directed by their state’s popular ballot.

The leaked emails disclosed details of Clinton’s paid speeches to Wall Street, party infighting and inside criticism about Clinton’s use of a private server to send emails while U.S. secretary of state. The disclosures led to embarrassing media coverage and prompted some party officials to resign.

Trump and his team dismiss intelligence claims of Russian interference, accusing Democrats and their allies of trying to undermine the legitimacy of his election victory.

Russian officials have denied accusations of interfering in the election.

On Sunday, Clinton’s campaign chairman, John Podesta, said it was an open question whether the Trump campaign colluded with Russia about the emails, an allegation that Trump’s incoming White House chief of staff, Reince Priebus, denied. A bipartisan group of U.S. senators called for a special committee probe of cyber attacks by Russia and other countries.

The number of Electoral College electors equals the number of representatives and senators in Congress, with each state receiving a share roughly proportional to its population size.

When voters go to the polls to cast a ballot for president, they are actually choosing a presidential candidate’s preferred slate for their state.

A candidate must secure 270 votes to win. Trump won 306 electors from 30 states.

The electors convene meetings in each state to cast ballots about six weeks after each presidential election.

If no candidate reaches 270 in the Electoral College, the president is chosen by the U.S. House of Representatives – currently controlled by Republicans.

(Additional reporting by Julia Harte in Washington; Editing by Peter Cooney)