A newsletter by Reuters and Westlaw |
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Good morning. Biden-era appointees could stymie Trump's effort to reshape the Fed. Plus, The 9th Circuit upheld the SEC’s “gag rule”; and a New York state judge threw out an ex-WilmerHale associate's discrimination and defamation lawsuit. This family swims with their pet alligator. Let’s dive in (sans gator).
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This morning let’s catch up with the Fed’s succession drama, which could influence regulatory decisions. Here’s what to know:
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Fed Governor Adriana Kugler's surprise resignation last week gives President Trump a seat on the Federal Reserve's Board of Governors to fill months earlier than expected. He could tap someone to serve as chief-in-waiting until Fed Chair Jerome Powell’s term as head of the central bank ends in May, or add another supportive voice to the board.
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Trump's coming nomination will focus attention on the plans of three other governors appointed by President Biden, as well as Powell himself. Combined, they could offer a powerful counterweight against any efforts to overhaul monetary policy or the central bank's operations. Read more about that here.
- The unusual breach between Trump and Powell has added to the complexity of the situation. Fed leadership transitions have long been nonpartisan and amicable, not moments for overhauling policy or remaking the institution, a legacy of a system designed to be at arms length from presidential influence.
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Last month Trump said he is not planning to fire Powell, but he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates. Here’s more on if firing Powell would be legal.
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U.S. District Judge Jia Cobb in D.C. will hold a motion hearing in a lawsuit brought by the American Association of Physics Teachers challenging the Trump administration’s termination of over $1 billion in grants awarded by the National Science Foundation for projects seeking to expand opportunities for women and other underrepresented groups in STEM. Read the complaint.
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Court calendars are subject to last-minute docket changes. |
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The 9th Circuit upheld the SEC’s “gag rule,” rejecting a claim it illegally silences defendants who want to criticize the regulator after settling civil enforcement cases. Read the opinion.
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A 2nd Circuit panel ruled that drugmakers Sanofi, Eli Lilly, Novo Nordisk and AstraZeneca must face a lawsuit from two health centers accusing them of conspiring to restrict drug discounts offered to community pharmacies that contract with providers serving low-income patients. Read the ruling.
- The jury in Manhattan federal court deadlocked on money laundering and sanctions evasion charges against Roman Storm, the founder of Tornado Cash, a firm that makes cryptocurrency transactions harder to track.
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The FTC sued to block Edwards Lifesciences Corp's acquisition of JenaValve Technology, saying in a lawsuit filed in Washington that the merger would decrease competition in the market for a device meant to treat a potentially fatal heart condition. Read the complaint.
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PepsiCo has been accused in a merchant lawsuit in U.S. court of illegally giving some retailers better price deals than others, in a case mirroring one that President Trump’s FTC abandoned. Read the complaint.
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