New Photo - Will Lionel Messi, Inter Miami close out Nashville in MLS playoffs? 'Anything can happen'

Will Lionel Messi, Inter Miami close out Nashville in MLS playoffs? 'Anything can happen' Safid Deen, USA TODAY October 31, 2025 at 7:18 PM 0 FORT LAUDERDALE, FL – Inter Miami and Nashville SC must be getting tired of each other.

- - Will Lionel Messi, Inter Miami close out Nashville in MLS playoffs? 'Anything can happen'

Safid Deen, USA TODAY October 31, 2025 at 7:18 PM

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FORT LAUDERDALE, FL – Inter Miami and Nashville SC must be getting tired of each other.

They'll meet in Game 2 of their first-round playoff series in the MLS Cup Playoffs – their third matchup in as many weeks – on Saturday, Nov. 1 at Geodis Park in Nashville, Tenn.

It's been a one-sided affair, to say the least.

Lionel Messi had a hat trick with an assist in a 5-2 win on the final day of the regular season in Nashville on Oct. 18, then scored two goals with an assist in a 3-1 win in Game 1 at Inter Miami's Chase Stadium on Oct. 24.

Still, it's just a 1-0 series lead for Inter Miami, where a close-out win on the road will help them move onto the second round of the playoffs.

Game 3, if necessary, would be on Nov. 8.

"We know despite having had two positive results against them in the last two weekends, we have to understand that Nashville has put us in many difficult moments," Inter Miami coach Javier Mascherano said of Nashville before practice on Friday, Oct 31. "We've dealt with it well, but they'll surely put us in a difficult moment again. We have to be prepared for that."

Lionel Messi and Luis Suarez after a goal against Nashville.

Inter Miami has not lost in its last 10 matches against Nashville, but expects them to play with the same intensity they had in the first half of their Decision Day match to end the season.

Nashville led 2-1 at halftime at home with goals from Jacob Shaffelburg and Sam Surridge, a 2025 MVP finalist this season like Messi. However, Messi scored two of Inter Miami's four unanswered goals in the second half of that matchup.

During Game 1, Messi and Inter Miami took a 3-0 lead before Nashville's Hany Mukhtar scored a free kick in the closing minutes to ruin a clean sheet.

While Inter Miami may feel in command, their historic first-round playoff loss to Atlanta United last season still lingers this postseason.

Inter Miami, the 2024 Supporters' Shield winners, won Game 1 against Atlanta before dropping the next two matches to end their season short of MLS Cup title expectations.

"We're doing well as a group. We're on a good run. But we can't get overconfident about our opponents because anything can happen," said Tadeo Allende, who scored in Game 1 of the series for Inter Miami.

July 5, 2025: Lionel Messi celebrates with his Inter Miami teammate after scoring a goal against CF Montreal during the first half at Saputo Stadium. Messi had two goals in Inter Miami's 4-1 win.

" data-src=https://ift.tt/NuaQTUX class=caas-img data-headline="Lionel Messi in MLS: Photos from soccer star's tenure with Inter Miami" data-caption="

July 5, 2025: Lionel Messi celebrates with his Inter Miami teammate after scoring a goal against CF Montreal during the first half at Saputo Stadium. Messi had two goals in Inter Miami's 4-1 win.

">July 5, 2025: Lionel Messi celebrates with his Inter Miami teammate after scoring a goal against CF Montreal during the first half at Saputo Stadium. Messi had two goals in Inter Miami's 4-1 win.

" src=https://ift.tt/NuaQTUX class=caas-img>

May 31, 2025: Lionel Messi scores a goal against the Columbus Crew at Chase Stadium. Messi scored two goals in Inter Miami's 5-1 win.

" data-src=https://ift.tt/80sR53p class=caas-img data-headline="Lionel Messi in MLS: Photos from soccer star's tenure with Inter Miami" data-caption="

May 31, 2025: Lionel Messi scores a goal against the Columbus Crew at Chase Stadium. Messi scored two goals in Inter Miami's 5-1 win.

">May 31, 2025: Lionel Messi scores a goal against the Columbus Crew at Chase Stadium. Messi scored two goals in Inter Miami's 5-1 win.

" src=https://ift.tt/80sR53p class=caas-img>May 3, 2025: Lionel Messi celebrates with Inter Miami teammate Luis Suarez (9) after scoring a goal against the New York Red Bulls at Chase Stadium. Inter Miami won the game, 4-1.

" data-src=https://ift.tt/0A7nKLt class=caas-img data-headline="Lionel Messi in MLS: Photos from soccer star's tenure with Inter Miami" data-caption="

May 3, 2025: Lionel Messi celebrates with Inter Miami teammate Luis Suarez (9) after scoring a goal against the New York Red Bulls at Chase Stadium. Inter Miami won the game, 4-1.

">May 3, 2025: Lionel Messi celebrates with Inter Miami teammate Luis Suarez (9) after scoring a goal against the New York Red Bulls at Chase Stadium. Inter Miami won the game, 4-1.

" src=https://ift.tt/0A7nKLt class=caas-img>

1 / 38Lionel Messi in MLS: Photos from soccer star's tenure with Inter MiamiOct. 24, 2025: Lionel Messi scores a goal off a header against Nashville SC during the first half of a Round 1 playoff game at Chase Stadium. Messi scored two goals as Inter Miami won the first game of a best-of-three series, 3-1.

Inter Miami left back Jordi Alba returned to practice after missing a session Tuesday due to a finger injury, Mascherano said.

Midfielder Rodrigo De Paul was given an excused absence after Game 1 to see his girlfriend, Argentine singer Tini Stoessel, perform in concert last weekend in Argentina. He returned to practice on Monday, and practiced all week.

"Rodrigo traveled over the weekend because we gave them Saturday and Sunday off. He had to travel to Argentina for personal reasons, and we gave him permission to do so. On Monday, he was here training with the rest of the team," Mascherano said of De Paul.

"I'm one of those coaches who, when I give players time off, I don't ask them what they're going to do … their private life is their private life. I have no reason to get involved in their private life. I'll also tell you that we knew he had to travel for some personal matters he had to resolve in Argentina, and he took advantage of the weekend to do so."

This article originally appeared on USA TODAY: Lionel Messi, Inter Miami vs Nashville in MLS playoffs 2025 bracket

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Will Lionel Messi, Inter Miami close out Nashville in MLS playoffs? 'Anything can happen'

Will Lionel Messi, Inter Miami close out Nashville in MLS playoffs? 'Anything can happen' Safid Deen, USA TO...
New Photo - Stellar Packers defense will have to contend with dangerous Panthers rushing attack

Stellar Packers defense will have to contend with dangerous Panthers rushing attack Field Level MediaOctober 31, 2025 at 11:06 PM 0 Pittsburgh Steelers quarterback Aaron Rodgers (8) gets sacked by Green Bay Packers defensive end Micah Parsons (1) during the second half at Acrisure Stadium in Pittsbu...

- - Stellar Packers defense will have to contend with dangerous Panthers rushing attack

Field Level MediaOctober 31, 2025 at 11:06 PM

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Pittsburgh Steelers quarterback Aaron Rodgers (8) gets sacked by Green Bay Packers defensive end Micah Parsons (1) during the second half at Acrisure Stadium in Pittsburgh, PA on October 26, 2025. (Michael Longo / For USA Today Network / USA TODAY NETWORK via Imagn Images)

GREEN BAY, WIS. -- Despite three consecutive victories, the Green Bay Packers will be looking for even better consistency to keep them atop the NFC North when they host the Carolina Panthers on Sunday.

Green Bay (5-1-1) is coming off a 35-25 victory against the Pittsburgh Steelers, winning its third straight to remain a half-game ahead of the Detroit Lions in the division.

The Panthers (4-4) had their three-game winning streak snapped in a 40-9 loss to the Buffalo Bills, playing without starting quarterback Bryce Young, who returned to practice Wednesday.

After a shaky couple of weeks, the Packers bounced back after a bye with a 27-18 home victory over the Cincinnati Bengals, then rallied for a 27-23 victory at the Arizona Cardinals. Most recently, Green Bay overcame a 16-7 halftime deficit against Pittsburgh behind Jordan Love's record-setting performance to overshadow former franchise icon Aaron Rodgers.

Love passed for 360 yards and three touchdowns against Pittsburgh, completing 29 of 37 passes, including a franchise record-tying 20 straight completions in one stretch.

Tight end Tucker Kraft had seven receptions for a career-high 143 yards and two touchdowns. Christian Watson, returning from a torn ACL suffered in the final regular-season game in 2024, had four catches for 85 yards.

Backup Emanuel Wilson ran for a team-high 61 yards on 11 carries, but leading rusher Josh Jacobs managed just 33 yards on 13 carries with a long run of 6 yards.

"We've just got to do a better job around him, making sure that he's got premium looks," Packers coach Matt LaFleur said Wednesday. "Some were playcalls, others were just we didn't block the right people."

The Packers defense is first in the NFL in yards per passing play at 5.38 and first in yards after catch with 3.85. Green Bay is third against the run at 78.9 yards per game.

Rashan Gary has a team-high 7.5 sacks and perennial All-Pro edge rusher Micah Parsons, acquired in a blockbuster trade with Dallas just prior to the regular season, has 6.5 sacks.

Receiver Dontayvion Wicks (calf), defensive lineman Lukas Van Ness (foot) and linebacker Nick Niemann (pectoral) did not practice for Green Bay this week and were ruled out for Sunday.

Linebacker Quay Walker (calf) and kicker Brandon McManus (right quadricep) are questionable to play. Jacobs (calf) and Watson (knee) were limited participants in Friday's practice.

Young, who missed the game against the Bills due to an ankle injury, was cleared to face Green Bay after practicing fully all week. Veteran backup Andy Dalton (right thumb) was limited at Friday's practice and is listed as questionable.

"Handled the week really well," Panthers coach Dave Canales said about Young on Friday. "Each day, just kind of ramped up some of the things we were exposing him to. He looked awesome, working with these guys, just getting in there, reading, communicating, and physically just looked like he's ready to go."

Young has thrown for 184 yards per game with 11 touchdowns and five interceptions.

The Panthers are fifth in the NFL in rushing at 136.9 yards per game. Rico Dowdle has run for a team-high 605 yards at 5.7 yards per carry.

Rookie first-round pick Tetairoa McMillan has been the top receiving target with 37 catches for 512 yards. Xavier Legette is next with 19 receptions for 159 yards.

Center Cade Mays (ankle/knee) and linebacker Princely Umanmielen (ankle) will not play against the Packers.

Along with Dalton, the slew of Panthers questionable for Sunday include offensive linemen Damien Lewis (oblique), Taylor Moton (knee) and Chandler Zavala (knee), linebacker Trevin Wallace (shoulder) and safety Nick Scott (groin).

Green Bay has won three straight versus Carolina. The Packers have allowed 24 or fewer points in 10 consecutive home games, the longest active home streak in the NFL.

--Jim Hoehn, Field Level Media

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Stellar Packers defense will have to contend with dangerous Panthers rushing attack

Stellar Packers defense will have to contend with dangerous Panthers rushing attack Field Level MediaOctober 31, 202...
New Photo - Trump to sit with CBS News in first interview after lawsuit, Semafor reports

Trump to sit with CBS News in first interview after lawsuit, Semafor reports ReutersOctober 31, 2025 at 10:49 PM 0 FILE PHOTO: The CBS broadcasting logo is seen outside the CBS Broadcast Center in Manhattan, New York, U.S., July 30, 2018. REUTERS/Shannon Stapleton/File Photo (Reuters) U.S.

- - Trump to sit with CBS News in first interview after lawsuit, Semafor reports

ReutersOctober 31, 2025 at 10:49 PM

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FILE PHOTO: The CBS broadcasting logo is seen outside the CBS Broadcast Center in Manhattan, New York, U.S., July 30, 2018. REUTERS/Shannon Stapleton/File Photo

(Reuters) -U.S. President Donald Trump will sit down with CBS anchor Norah O'Donnell for an interview on Friday afternoon, the first with the network after his lawsuit against it, Semafor reported.

Paramount in July agreed to pay $16 million to settle a lawsuit filed by Trump over his claim that CBS deceptively edited a "60 Minutes" interview with his Democratic presidential opponent Kamala Harris last year.

CBS-parent Paramount Skydance named Bari Weiss editor-in-chief of CBS News earlier this month, as part of a deal to acquire the center-right online news outlet she founded, the Free Press.

CBS News and the White House did not immediately respond to Reuters requests for comment on the report.

CBS also appointed a new ombudsman who had previously run the Hudson Institute, a conservative think tank.

David Ellison, the son of Oracle co-founder Larry Ellison, took over the CBS network and other Paramount properties earlier this year when his company Skydance Media merged with Paramount Global in an $8.4 billion deal.

Semafor had reported earlier this month that the White House was in talks with CBS News program "60 Minutes" about conducting an interview with Trump.

(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)

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Trump to sit with CBS News in first interview after lawsuit, Semafor reports

Trump to sit with CBS News in first interview after lawsuit, Semafor reports ReutersOctober 31, 2025 at 10:49 PM 0 ...
New Photo - Supplements sold at Sam's Club linked to salmonella outbreak

Supplements sold at Sam's Club linked to salmonella outbreak CBSNewsOctober 31, 2025 at 10:53 PM 0 Paul Weaver/SOPA Images/LightRocket via Getty Images Powder supplements sold at Sam's Club stores are linked to at least 11 cases of Salmonella in seven states, federal health authorities said Friday.

- - Supplements sold at Sam's Club linked to salmonella outbreak

CBSNewsOctober 31, 2025 at 10:53 PM

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Paul Weaver/SOPA Images/LightRocket via Getty Images

Powder supplements sold at Sam's Club stores are linked to at least 11 cases of Salmonella in seven states, federal health authorities said Friday.

Member's Mark Super Greens Powder Supplements, which were sold at the discount chain's stores nationwide and online, have been pulled from store shelves because they contain moringa leaf powder that may be contaminated with Salmonella bacteria, the U.S. Centers for Disease Control and Prevention said in an alert posted on its website.

"If you have any of the products listed below in your home, throw them out or return them to the store," the agency said, while noting that the product has not been recalled.

Three of the people who contracted salmonella were hospitalized, according to the agency. Illnesses, which were reported between May and September, were confirmed in Florida, Kansas, Michigan, North Carolina, New York, South Carolina and Virginia.

The source of the Salmonella was traced to a single lot of organic moringa leaf powder imported from Vallon Farm Direct in Jodhpur, India, according to an investigation by the Food and Drug Administration. State health officials in Virginia and Michigan collected and tested samples of the product from the homes of people who fell ill.

The CDC said it may add other Vallon Farm products with moringa leaf powder to avoid as the agency's investigation continues.

Moringa is a plant native to India and other countries prized for essential nutrients including protein, amino acids, vitamins and minerals, according to research published by the National Institutes of Health. Its leaves can be dried and powdered.

People infected with the Salmonella bacteria can experience symptoms including nausea, vomiting, diarrhea, bloody diarrhea, abdominal cramping and fever. Rarely, Salmonella can result in more serious ailments, including arterial infections, endocarditis, arthritis, muscle pain, eye irritation and urinary tract symptoms.

Infections can be severe in young children, older adults and people with weakened immune systems, who may require hospitalization.

Trump wants Senate Republicans to scrap the filibuster to end the government shutdown

House lawmakers told their paychecks are delayed until government reopens

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Supplements sold at Sam's Club linked to salmonella outbreak

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New Photo - The great AI buildout shows no sign of slowing

The great AI buildout shows no sign of slowing By Akash SriramOctober 31, 2025 at 10:54 PM 0 Open AI and Microsoft logos are seen in this illustration taken on September 12, 2025.

- - The great AI buildout shows no sign of slowing

By Akash SriramOctober 31, 2025 at 10:54 PM

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Open AI and Microsoft logos are seen in this illustration taken on September 12, 2025. REUTERS/Dado Ruvic/Illustration

By Akash Sriram

(Reuters) -A momentous week in the technology sector made it clear there is no sign the boom in building artificial intelligence infrastructure is slowing — despite the bubble talk.

Nvidia, whose processors are the AI revolution's backbone, became the first company to surpass $5 trillion in market value. Microsoft and OpenAI inked a deal enhancing the ChatGPT maker's fundraising ability and OpenAI promptly started laying groundwork for an initial public offering that could value the company at $1 trillion.

Amazon said it would cut 14,000 corporate jobs, just days before its cloud unit posted its strongest growth in nearly three years.

These developments, along with numerous earnings calls and interviews with executives, make clear that AI has cemented itself as the single biggest catalyst for global corporate investment and the engine of the market rally, even as some question the sustainability of both.

Soaring revenue at Microsoft, Alphabet and other technology giants was expected. But more than 100 non-tech global companies noted data centers on quarterly calls this week, including Honeywell, turbine maker GE Vernova, and heavy equipment maker Caterpillar.

Sales in Caterpillar's division that supplies data centers jumped 31% in its most recent quarter. "We're definitely really excited about the prime power opportunity with data centers," CEO Joseph Creed said this week.

"The AI supply chain now spans power, industrials and cooling technology, and investors are looking at the entire ecosystem rather than just core tech," said Ayako Yoshioka, portfolio manager at Wealth Enhancement Group.

Goldman Sachs estimates global AI-related infrastructure spending could reach $3 trillion to $4 trillion by 2030. Microsoft, Amazon, Meta and Alphabet are expected to spend roughly $350 billion combined this year.

AI investment is propping up global trade, with about 60% of U.S. data-center capex spent on imported IT equipment, according to Oxford Economics, much of it semiconductors from Taiwan, South Korea and Vietnam.

At least two dozen companies representing more than $21 trillion in combined market value reported quarterly earnings or spoke with Reuters about AI in recent days. Many, including Procter & Gamble and Boliden, noted that the hoped-for productivity gains, though uneven, are beginning to show.

"We strongly believe the future contribution of artificial intelligence within R&D, within developing innovation, will steadily increase," Schindler CEO Paolo Compagna told Reuters, though he said AI's impact is yet to be seen. The Swiss lift and escalator maker raised its annual margin forecast last week.

Year-over-year revenue growth in the U.S. tech sector is up more than 15%, outpacing all other sectors, according to LSEG data.

Apple said it was significantly increasing AI investment and Amazon projected capital spending of $125 billion in 2025.

Since ChatGPT's debut in 2022, global equity values have climbed 46%, or $46 trillion. One-third of that gain has come from AI-linked companies, according to Bespoke Investment Group.

Analysts warn of a quickening replacement cycle for servers, accelerators and chips as each new generation delivers exponential performance gains. The useful life of AI chips is shrinking to five years or less, forcing companies to "write down assets faster and replace them sooner," said UBS semiconductor analyst Tim Arcuri.

The surge in AI-related spending has widened the gap between investment and returns, with a Reuters analysis showing that sales-to-capex ratios at major tech firms have fallen sharply as outlays on chips and data centers grow faster than revenue. Capital expenditures represent a larger chunk of cash generated by operating activities for some companies, causing some investor concern.

"If progress hasn't been made toward monetization within three years, the market will start asking hard questions," said Sumali Sanyal, senior portfolio manager at investment firm Xponance.

Microsoft reported a record $35 billion in capex in its most recent quarter and projected higher spending, prompting Bernstein analyst Mark Moerdler to ask whether the company was spending into a bubble. Microsoft Chief Financial Officer Amy Hood responded that AI-related demand still outpaces Microsoft's spending. "I thought we were going to catch up. We are not," she said.

Some companies are financing AI projects with debt. Oracle's $18 billion bond sale last month was one of the largest ever for a tech company, and it looks set to be surpassed by an up to $30 billion bond sale from Meta Platforms. News of its largest ever bond sale knocked Meta's shares down 11% on Thursday.

Still, many economists say the AI cycle is far from exhausted. Goldman estimates AI investment is currently less than 1% of U.S. GDP, far below peaks of 2% to 5% seen during the electricity and dot-com booms.

"We are in the early innings ... and the pace of AI innovation is the fastest we have seen in decades," said Nick Evans, portfolio manager at Polar Capital Technology Trust.

(Reporting by Akash Sriram, Sriparna Roy, Sneha SK and Puyaan Singh in Bengaluru and Jessica DiNapoli in New York, Bernadette Hogg in Gdansk, Poland; Editing by David Gaffen and Rod Nickel)

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The great AI buildout shows no sign of slowing

The great AI buildout shows no sign of slowing By Akash SriramOctober 31, 2025 at 10:54 PM 0 Open AI and Microsoft l...
New Photo - Trump-appointed Federal Reserve governor breaks ranks with Jerome Powell — here's why that matters for markets

Trumpappointed Federal Reserve governor breaks ranks with Jerome Powell — here's why that matters for markets Mike CrisolagoOctober 31, 2025 at 11:00 PM 0 Stephen Miran breaks ranks with Jerome Powell at FOMC meeting. The Federal Reserve lowering its benchmark interest rate to between 3.

- - Trump-appointed Federal Reserve governor breaks ranks with Jerome Powell — here's why that matters for markets

Mike CrisolagoOctober 31, 2025 at 11:00 PM

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Stephen Miran breaks ranks with Jerome Powell at FOMC meeting.

The Federal Reserve lowering its benchmark interest rate to between 3.75% and 4% — their second rate cut this year — should have been the biggest news coming out of Wednesday's Federal Open Market Committee (FOMC) meeting.

But the 25 basis point cut was overshadowed by the fact that the decision yielded two dissents — including one from Stephen Miran, a recent Trump appointee to the Federal Reserve Board of Governors.

Miran, who assumed his role in mid-September, dissented (1) for the second FOMC meeting in a row, calling again for a half-point rate cut. (2) The other dissenter, Kansas City Fed President Jeffrey Schmid, leaned in the opposite direction, calling for the rate to remain as is.

"I would just point out that we have the situation where the risks are to the upside for inflation and to the downside for employment. We have one tool … you can't address both of those at once," Fed Chair Jerome Powell told reporters after the meeting when broadly discussing the issues that triggered dissent among the group. (3)

While there is precedent for multiple dissents around Federal Reserve decisions, (4) they are rare — with the last one occurring in 2019. Miran's dissension, however, aligns with the repeated public declarations from Trump calling for a larger rate cut, thus raising questions about the political undertones rippling through the supposedly independent, non-partisan central bank.

Powell also noted that the Fed's moves were made without the usual economic data provided by the government due to the ongoing shutdown. Instead, he said, they relied on data from private companies like HR software company ADP.

He also said that a third rate cut "is not a foregone conclusion … Policy is not on a preset course" when the group meets in December, likely setting up another showdown for dissension. As well, it was announced that December 1 would mark the end of the Fed's balance sheet run-off — which could signal a nod toward liquidity and the quantitative easing that Trump has long championed. (5)

Political pressure on the Fed

Though Powell didn't mention Trump during his talk with reporters, the shadow of the president and his preferred policies loomed large over the meeting.

A day earlier, while speaking at an APEC CEO's event in South Korea, Trump referred to Powell as "incompetent" and by the nickname "Too Late" before adding that, after the Fed Chair's term expires next year, a change in leadership will more closely reflect Trump's economic vision. (6)

"We'll appoint somebody that we all like because we should have the lowest interest rates of any country," Trump said. "When we announce good news, we're not going to have a Fed that's going to raise interest rates because they're worried about inflation in three years from now."

Powell, in his remarks after the meeting, pointed to Trump's tariffs, noting, "Higher tariffs are pushing up prices in some categories of goods, resulting in higher overall inflation." He added that "our obligation is to ensure that a one-time (tariff) increase in the price level does not become an ongoing inflation problem."

That being said, though the Fed didn't announce specific plans for injecting liquidity to stimulate the economy, the move to finish up its balance sheet run-off signals something of a nod in Trump's direction. (7) Though not necessarily done to appease the president, it does reflect his long-held desire for quantitative easing. Powell, for his part, maintains that the Fed is stable and that "everybody on the Committee is deeply committed to doing the right thing to achieve our goals — maximum employment and stable prices."

All of this does, however, raise questions about continued dissension over how best to stimulate the economy going into 2026, as well as fears over further politicization of the Fed.

Reshaping the Fed's independence?

Looking ahead, questions around more partisan splits at the Fed and the possibility of relatively unpredictable rate fluctuations could result in consumers and investors alike taking a more cautious approach to everything from borrowing costs to portfolio management.

Market volatility is another major concern, as the Center for American Progress explained recently. "Knowing that the rates will be based on well-researched data, and not political whims, assures the world that the U.S. economy will remain relatively stable and its markets will remain rational," the non-partisan policy institute wrote. "Few foreign investors want to risk their money in a volatile, unpredictable environment." (8)

Meanwhile, Powell repeatedly referred to the "strongly different views" in the FOMC group that led to the dissension over the rate cut, saying they "were really about the future, what does that look like?" Which is a fair question, though perhaps not in the way Powell meant it.

Miran, for example, remains the chair of the White House Council of Economic Advisors, taking a leave of absence rather than stepping down when appointed Fed Governor — though he says he'll resign if his current four-month stint in the role is extended. (9) That means the supposedly independent bank now has a direct line to the White House.

This week also brought confirmation that one of the candidates nominated to replace Powell as Fed Chair is Kevin Hassett, a staunch Trump ally who served as both an advisor and the current chair of the White House's National Economic Council. (10)

Such moves raise questions about the Fed's independence going forward, the easing and rate cuts it could affect, and the ensuing long-term implications.

Critics have pointed to examples of the disastrous consequences of exerting presidential pressure on central banks, from Richard Nixon to Turkish President Recep Tayyip Erdoğan — who both pushed to significantly lower interest rates which, ultimately, sent inflation skyrocketing. It's a warning that forced short-term easing that seems like a political and economic boon could result in a larger inflationary blow in the long run.

As the Economic Policy Institute noted, "Presidential capture of the Fed would signal to decision-makers throughout the economy that interest rates will no longer be set on the basis of sound data or economic conditions." (11) They added that, "Confidence that the Fed will respond wisely to future periods of macroeconomic stress — either excess inflation or unemployment — will evaporate."

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CNN (1); CNBC (2, 5, 9); Federal Reserve (3); Reuters (4); The White House (6); Bloomberg (7); Center for American Progress (8); ABC News (10); Economic Policy Institute (11)

This article originally appeared on Moneywise.com under the title: Trump-appointed Federal Reserve governor breaks ranks with Jerome Powell — here's why that matters for markets

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Trump-appointed Federal Reserve governor breaks ranks with Jerome Powell — here’s why that matters for markets

Trumpappointed Federal Reserve governor breaks ranks with Jerome Powell — here's why that matters for markets Mi...

 

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