Senate blocks confirmation of Trump Fed nominee Shelton

(Reuters) – The U.S. Senate on Tuesday blocked President Donald Trump’s nomination of Judy Shelton to the board of the Federal Reserve, making her the latest in a string of failed nominees to the central bank.

Trump’s Republican Party has a 53-47 majority in the current Senate, but several were absent, including two who were quarantining due to exposure to COVID-19, and others joined Democrats in voting ‘no’ in the so-called cloture vote.

The vote was 47 to 50 with Senate Majority Leader Mitch McConnell voting ‘no’ to preserve the option to reconsider later.

Shelton, an adviser to Trump’s 2016 presidential campaign who has argued the nation would be better off returning to the gold standard, as recently as 2017 criticized the Fed’s power over money and financial markets as “quite unhealthy.” During her Senate confirmation process, she called the Fed’s bond-buying and zero rates in the last crisis “extreme.”

Her views on interest rates have moved in lockstep with Trump’s. She lambasted easy money before Trump’s presidency, but supported it after he took office, and has expressed skepticism over the Fed’s need to set policy independently from the president and Congress.

Other Trump Fed nominees that failed to be confirmed included former Republican presidential candidate Herman Cain, who later died of COVID-19.

(Reporting by Patricia Zengerle and Doina Chiacu; writing by Ann Saphir; editing by Jonathan Oatis and Edward Tobin)

Pompeo voices confidence U.S. vote count will lead to ‘second Trump administration’

By Humeyra Pamuk

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo on Tuesday voiced confidence that once every “legal” vote was counted, it would lead to a “second Trump administration,” appearing to reject Democratic challenger Joe Biden’s victory over President Donald Trump.

He spoke as world leaders, including Washington’s close allies Britain and France, already have congratulated President-elect Biden. Trump, a Republican, has so far refused to concede and made baseless claims that fraud was marring the results.

“There will be a smooth transition to a second Trump administration,” Pompeo told a State Department news conference. He later sought to assure the world that America’s post-election transition would be successful.

“We’re going to count all the votes … The world should have every confidence that the transition necessary to make sure that the State Department is … successful today and successful when the president who’s in office on January 20, a minute after noon, will also be successful.”

Biden, due to take office on Jan. 20, 2021, risks a delayed transition as Trump has vowed to push ahead with longshot legal challenges to his election loss. Republican U.S. lawmakers have defended his right to do so.

Asked if Trump’s refusal to concede hampers State Department efforts to promote free and fair elections abroad, Pompeo, a close ally and appointee of Trump’s, said: “This department cares deeply to make sure that elections around the world are safe and secure and free and fair.”

The leading Republican in Congress, Senate Majority Leader Mitch McConnell, has carefully backed Trump, saying that he was “100% within his rights to look into allegations of irregularities,” without citing any evidence.

And U.S. Attorney General William Barr, a Trump appointee who heads the Justice Department, on Monday told federal prosecutors to “pursue substantial allegations” of irregularities of voting and the counting of ballots.

In his first official travel after the Nov. 3 election, Pompeo is due to travel to France, Turkey, Georgia, Israel, Qatar, United Arab Emirates and Saudi Arabia between Nov. 13-23. The leaders of some of those countries have already congratulated Biden.

(Reporting by Humeyra Pamuk Susan Heavey and David Brunnstrom; Editing by Howard Goller)

Senate leader McConnell says wants coronavirus aid bill by year’s end

By Richard Cowan

WASHINGTON (Reuters) – U.S. Senate Majority Leader Mitch McConnell on Wednesday said Congress needed to approve a new coronavirus aid bill by the end of 2020 as lawmakers return to work following Tuesday’s elections.

Saying he hoped that partisanship over such a stimulus bill will subside with voting for president and members of Congress over, McConnell said there was a “need to do it by the end of the year.” He also noted the “possibility” that such a bill “will do more for state and local governments,” a key Democratic demand.

On Oct. 30, McConnell said in an interview with conservative radio show host Hugh Hewitt that such an aid bill should be done at the beginning of 2021. McConnell, the top Republican in Congress, did not say why he was now accelerating that timetable.

“I think that’s job-one when we get back, hopefully with a more cooperative situation than we had,” before the election, McConnell said.

He added that another top priority of Congress’ work session that begins next week and could extend well into December is passage of legislation to fund government functions beyond Dec. 11, when existing money expires.

House of Representatives Speaker Nancy Pelosi is seeking a comprehensive coronavirus aid bill of at least $2.2 trillion. But the Senate’s Republican majority balked and before the election that chamber did not even pass a pared-down $500 billion measure.

(Reporting by Richard Cowan; Editing by Chizu Nomiyama and David Gregorio)

U.S. airlines urge relief as White House signals possible piecemeal aid

By Tracy Rucinski

CHICAGO (Reuters) – U.S. airlines urged top lawmakers on Wednesday to advance a standalone bill that would extend $25 billion in payroll support through March, as the Trump administration signaled possible piecemeal legislation a day after walking away from broad COVID-19 relief talks.

“We are disappointed that negotiations between Congress and the Administration over additional COVID-19 relief were suddenly suspended yesterday,” Airlines for America, the main industry trade group, and a dozen airline unions wrote in a letter on Wednesday seen by Reuters.

“Now, in the absence of an overall COVID-19 relief package, we urge you to advance standalone legislation to extend the PSP (payroll support program),” it said.

The letter was sent to House Speaker Nancy Pelosi, Senate Majority Leader Mitch McConnell, House Minority Leader Kevin McCarthy and Senate Minority Leader Chuck Schumer.

Earlier, White House chief of staff, Mark Meadows, told reporters that stimulus talks were off but that negotiators were looking at standalone bills on 10 things that “we agree on.”

The idea of airline relief has so far enjoyed broad bipartisan support in Washington, though last week Representative Peter DeFazio, chair of the House Transportation and Infrastructure Committee, failed to win approval of a standalone bipartisan measure for airlines under unanimous consent after some Republicans objected.

Airline shares jumped on Wednesday after sinking suddenly a day earlier on remarks by President Donald Trump that his administration would abandon talks with congressional Democrats over proposals to spend at least $1.6 trillion in additional coronavirus relief funds.

(Reporting by Tracy Rucinski; Editing by Chizu Nomiyama and Bernadette Baum)

With two cases, shorthanded U.S. Supreme Court opens new term amid drama

By Lawrence Hurley

WASHINGTON (Reuters) – The U.S. Supreme Court returned to work on Monday for the first time since liberal Justice Ruth Bader Ginsburg’s death and heard arguments in two cases, opening its new term as Senate Republicans pursued quick confirmation of President Donald Trump’s conservative nominee to replace her.

At least at the outset of the term, the cases are being argued as they were at the end of the last term by teleconference because of the coronavirus pandemic.

With eight justices rather than the usual nine, the court started a term due to run through next June that includes several major cases including one that will decide the fate of the Obamacare healthcare law. Its last term ended in July.

Before the first argument began, Chief Justice John Roberts paid tribute to Ginsburg, calling her a “dear friend and treasured colleague” and sent “our condolences to her children, extended family and countless admirers.” Roberts said that a memorial service will at some point be held in the courtroom.

Ginsburg died on Sept. 18 at age 87. Trump on Sept. 26 nominated federal appeals court judge Amy Coney Barrett to replace her, and asked the Republican-led Senate to confirm her by the Nov. 3 U.S. election. If confirmed, Barrett would give the court a 6-3 conservative majority.

Senate Majority Leader Mitch McConnell reiterated on Saturday that Barrett’s confirmation hearings, due to be held next week, will proceed as planned even though two Republicans on the Judiciary Committee had contracted the coronavirus. Trump himself remained hospitalized with COVID-19 on Monday.

Trump has said he wants Barrett to be confirmed before Election Day so she could cast a decisive vote in any election-related dispute, potentially in his favor. He has said he expects the Supreme Court to decide the outcome of the election, though it has done so only once – the disputed 2000 contest ultimately awarded to Republican George W. Bush.

The first oral argument of the term centered on a system used by the state of Delaware that requires some of its courts to be ideologically balanced. The justices are weighing the state’s appeal defending its law, which requires that no more than half of the judges on certain courts be affiliated with one particular political party. It also requires that Delaware judges be affiliated with one of the two major political parties in the state.

During the argument, some of the justices questioned whether challenger James Adams, who has said he wants to serve as a judge, had legal standing to bring his claim, in part because he never formally applied. Roberts said that if someone approached him about a job as a clerk but never applied, “I really wouldn’t know what to make of it.”

The second case argued before the justices was a dispute between Texas and New Mexico over rights to the waters of the Pecos River that runs through both states.

On Wednesday, the justices weigh a multibillion-dollar software copyright dispute between Alphabet Inc’s Google and Oracle Corp. The case involves Oracle’s accusation that Google infringed its software copyrights to build the Android operating system used in smartphones.

Two big cases are scheduled for November.

On Nov. 10, a week after Election Day, the court is due to hear arguments in a case in which a group of Democratic-led states including California and New York are striving to preserve the 2010 Affordable Care Act, better known as Obamacare. Republican-led states and Trump’s administration are waging a court battle to strike down Obamacare.

The court hears another major case on Nov. 4 concerning the scope of religious-rights exemptions to certain federal laws. The dispute arose from Philadelphia’s decision to bar a local Roman Catholic entity from participating in the Democratic-governed city’s foster-care program because the organization prohibits same-sex couples from serving as foster parents.

(Reporting by Lawrence Hurley; Editing by Will Dunham)

Trump says he will name Supreme Court pick by Saturday, urges quick vote

By Lawrence Hurley and Andrew Chung

WASHINGTON (Reuters) – President Donald Trump said on Monday he will announce his U.S. Supreme Court pick by the end of the week, moving quickly to fill the seat of liberal icon Ruth Bader Ginsburg and cement a 6-3 conservative majority ahead of his Nov. 3 re-election bid.

The Republican president said he is looking “very seriously” at five candidates and would put forward his nominee on Friday or Saturday after funeral services for Ginsburg, who died of complications from pancreatic cancer on Friday at age 87.

Trump said the Republican-controlled Senate should hold a vote ahead of the election.

“The final vote should be taken frankly before the election. We have plenty of time for that,” Trump said on Fox News.

Senate Majority Leader Mitch McConnell, who has prioritized confirming Trump’s judicial appointments, has said he would usher through a vote. Republicans hold a 53-47 majority in the Senate, but two Republican senators – Maine’s Susan Collins and Alaska’s Lisa Murkowski – over the weekend said the chamber should not move forward with a Trump nominee before the election.

McConnell has time, as a new Congress will not be sworn in until Jan. 3. Democrats are hoping to win control of the Senate in the election.

Ginsburg’s death has upended the campaign season, giving Trump and his party an opportunity to strengthen its grip on a court whose decisions influence many spheres of American life including abortion, healthcare, gun rights, voting access, presidential powers and the death penalty.

Trump already has named two conservative justices to the high court, Neil Gorsuch and Brett Kavanaugh.

Trump has mentioned possible candidates in Amy Coney Barrett of the Chicago-based 7th U.S. Circuit Court of Appeals and Barbara Lagoa of the Atlanta-based 11th Circuit U.S. Circuit Court of Appeals. Trump named both of them to their current jobs. Trump on Fox also was asked about Judge Allison Rushing, who Trump appointed to the Richmond, Virginia-based 4th U.S. Circuit Court of Appeals last year.

“I’m looking at five, probably four, but I’m looking at five very seriously. I’m going to make a decision on either Friday or Saturday,” Trump said.

‘A TERRIFIC WOMAN’

Asked about Lagoa, a conservative Cuban-American jurist from Florida, Trump said, “She’s Hispanic. She’s a terrific woman from everything I know. I don’t know her. Florida. We love Florida.” Florida is an election battleground state pivotal to Trump’s chances against Biden.

The court vacancy also has given Trump and his fellow Republicans a chance to steer the national discussion away from the coronavirus pandemic, which has killed almost 200,000 Americans and thrown millions of people out of work.

Democrats accused McConnell of hypocrisy for being eager to usher a Trump nominee to a confirmation vote. In 2016, he refused to even consider Democratic President Barack Obama’s nominee to fill a vacancy on the court left by the death of conservative Justice Antonin Scalia, saying it would be inappropriate to do so during an election year.

(Reporting by Lawrence Hurley in Washington and Andrew Chung in New York; Additional reporting by Doina Chiacu, Susan Heavey and Jan Wolfe, Writing by Andy Sullivan; Editing by Will Dunham and Scott Malone)

McConnell says U.S. needs ‘another boost’ as coronavirus relief talks continue

By Patricia Zengerle

WASHINGTON (Reuters) – Senate Majority Leader Mitch McConnell on Thursday said the U.S. economy needs an “additional boost” to cope with the fallout of the coronavirus pandemic, as his Democratic counterparts and White House officials try to hash out a next wave of relief.

As talks neared the end of their second week, the four principal negotiators – a group that does not include McConnell – appeared to be near agreement on some topics, but still trillions of dollars apart on major issues including the size of a federal benefit for tens of millions of unemployed workers.

McConnell said he agreed with Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin that agreement is needed on another aid package, even though some of his fellow Republicans in the Senate do not think so.

“I think we need an additional agreement,” the Republican Senate leader told CNBC, adding “the economy does need an additional boost.” Nonpartisan analysts say McConnell’s Republicans face a risk of losing their Senate majority in November’s elections.

McConnell continued to insist that unemployment benefits in any deal should be adjusted downward and that the agreement should include liability protections against lawsuits for reopening businesses during the pandemic.

Mnuchin was due to join fellow Republican Mark Meadows, the White House chief of staff, and the two top congressional Democrats, House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer, for talks on Capitol Hill at 5 p.m. EDT (2100 GMT).

Others not in the negotiation room considered their own actions, as Republican senators said they had been told that no deal by Friday would mean no deal at all.

Republican President Donald Trump stood ready to use executive orders to address issues such as unemployment benefits and protections against evictions if talks failed, according to Meadows.

Republican Senator Marco Rubio told reporters that the Senate on Thursday could also take up a new version of the Payroll Protection Program that provides financial assistance to small businesses in the form of forgivable loans.

Congress passed more than $3 trillion in relief legislation early in the pandemic. But lawmakers missed a deadline last week to extend the $600 per week in enhanced unemployment payments that played a key role in propping up the economy.

Pelosi and Schumer have pushed for a comprehensive package of assistance for the unemployed, the poor, hospitals, schools and state and local governments.

“The leader and I are determined that we will come to agreement. But it has to meet the needs of the American people,” Pelosi said.

Mnuchin has warned that the Trump administration would not accept “anything close” to the $3.4 trillion in new aid sought by Democrats. Senate Republicans have proposed a $1 trillion package that many of their own members have rejected.