Good morning. Andrew here. Amid all of the headlines about the Fed and the government shutdown, which we cover below, I want to pause for a moment to reflect on someone whose life mattered far more than a news cycle: Jane Goodall, the renowned primatologist and conservationist who died yesterday. I was fortunate to spend time with her on several occasions, and she was as extraordinary a person as you could ever hope to meet. Her groundbreaking research on chimpanzees changed the way we understand animals — and ourselves. Just as important, she inspired generations to think more deeply about our shared responsibility for the planet. Goodall’s life is a reminder that we could all use a little more of the empathy that she embodied. (Was this newsletter forwarded to you? Sign up here.)
Trump’s bind at the FedPresident Trump’s effort to exert greater control over the Fed has suffered a temporary, but potentially stinging, setback. The Supreme Court’s decision yesterday to let Lisa Cook stay on as a Fed governor for now probably doesn’t change the central bank’s plans for interest rates in the short term. The futures market this morning was penciling in cuts at the next two rate-setting meetings, in line with Trump’s calls for lowering borrowing costs. But beyond that, Fed officials are divided over whether deeper cuts are needed, and yesterday’s ruling could complicate Trump’s efforts to remake the institution more to his liking. The latest: The Supreme Court said it would begin hearing arguments in January over whether the White House can fire Cook over accusations that she committed mortgage fraud. The case is one of the biggest tests yet on the limits of executive power over an independent government institution, legal experts say. Pushing the matter into next year means that Cook will have a say on rates for at least the next two policy meetings, and probably more. (That task may have become more complicated because of the government shutdown leading to a blackout of key economic data, including a jobs report that was set to be published tomorrow.) Perhaps more important, the ruling could keep her in place for a pivotal vote early next year on the reappointment of all 12 regional Fed bank presidents, key policymakers appointed by multiple presidents and who have expressed differing views on rates. Trump still has cards to play. It’s unclear how the Supreme Court will ultimately rule on Cook. While it has suggested that the Fed is a uniquely independent government body — and every living former chair signed onto a court brief emphasizing the economic importance of protecting the institution’s political independence — its conservative majority has sided often with Trump in recent cases. Some Fed watchers are wondering if Trump will target other Fed governors, too. “Until the court rules on the merits, Fed independence remains very much in jeopardy,” Jeremy Kress, a University of Michigan law professor and former lawyer at the Fed, told The Times. Even if the president is unable to pack the Fed with loyalists, he can appoint a replacement for Jay Powell as chair when his term is up in May. (However, Powell could remain on as a Fed governor through January 2028.)
OpenAI officially becomes the world’s most valuable privately held start-up. Employees of the artificial intelligence giant sold $6.6 billion worth of stock at a $500 billion valuation, a level that surpasses SpaceX’s $400 billion, Bloomberg reports. Buyers included Thrive Capital, SoftBank, Dragoneer Investment Group and Abu Dhabi’s MGX. Colleges are pressed to sign a “compact” to ensure federal funding. The White House sent letters to nine top U.S. schools urging them to pledge support for President Trump’s political agenda. The 10-point memo, called the “Compact for Academic Excellence in Higher Education,” requires schools to freeze tuition for five years, ban the use of race or sex in admissions, cap international undergraduate enrollment and bar anything that would punish or even “spark violence” against conservative beliefs. Colleges that agree would get priority access to federal funds. Apple pauses a redesign of its Vision Pro headset. The technology giant told employees that it was redirecting resources from the project to focus on developing smart glasses like those from Meta, Bloomberg reports. The move comes as consumer interest in the Vision Pro augmented reality headset has waned, while Meta’s Ray-Ban and Oakley glasses have spurred further interest in smart-glasses technology. The shutdown updateAs the government shutdown enters its second day, its effects are continuing to ripple through the economy. But unlike previous shutdowns, including those in the first Trump administration, the White House is using the shutdown to cut the federal work force, not just furlough employees — and punish political opponents. Here’s the latest:
It’s unclear when the shutdown will end. A majority on the prediction market Kalshi are wagering it will last at least 10 days, with the two parties still far apart on issues like extending health subsidies. One thing to watch is whether political pressure will be a factor in its duration: A new Washington Post poll found that more respondents blame President Trump and Republicans for the shutdown than Democrats. Trump’s growing crypto influenceThe Trump family was welcomed into the crypto fold at the Token2049 conference last spring in Dubai. The Singapore edition of the event this week felt like a full-blown victory lap for the first family — replete with golf simulators and a money-grabbing machine. Donald Trump Jr. and Zach Witkoff, his World Liberty Financial business partner, set the tone yesterday, Grady McGregor reports from the event. The pair introduced big plans for their crypto firm, including a new debit card and an investment plan that involves converting Trump real estate into crypto tokens. Above all, they staked their claim over an industry that until recently had dismissed them. “Last year, they all sat up here and they called us a joke, they called us a meme coin,” Witkoff, the son of Steve Witkoff, President Trump’s Middle East envoy, said onstage. “How are we doing now folks?” World Liberty Financial is thriving on paper. The year-old company’s crypto and stablecoin assets are valued at more than $5 billion. The broader industry, too, is on a tear, with the overall crypto market cap rising to nearly $4.2 trillion today from $2.4 trillion the day before Trump’s election. Crypto executives expressed optimism about the Trump effect on the industry. The anxiety over Biden-era regulators has been replaced by a growing sense that cultivating strong ties to the Trump family will be good for business, they told DealBook. Case in point: Justin Sun, the contentious crypto titan and major investor in World Liberty Financial who saw his S.E.C. fraud investigation paused in the early days of Trump’s second term. He received star treatment today in a lighthearted roast led by the “Silicon Valley” actor T.J. Miller. That dynamic cuts both ways though. A major talking point on the sidelines of the event was the meteoric rise of World Liberty Financial’s new USD1 stablecoin, and questions about whether its success also presents a huge conflict of interest for the Trump family. But there’s been little debate on Trump’s growing influence over the sector. Washington under Trump now sets the global agenda, attendees noted, largely matching Trump’s own campaign promises. Stablecoins also dominated the discussion. That had much to do with the recent passage of the Genius Act, the Trump administration’s signature crypto law. Start-ups unveiled plans to issue stablecoins on conservative video platforms; others see it spurring commerce — for purchases like dog food, or superyachts.
The data for, and against, co-C.E.O.sThis week, Spotify became the latest company to decide that two heads are better than one, as the audio giant named its co-presidents as co-C.E.O.s, succeeding Daniel Ek. For many companies, the ideal leadership “may be best found in two people,” according to Marc Feigen, a consultant for C.E.O.s. Here are some data points that suggest that such an arrangement works — and that it doesn’t, Niko Gallogly reports. A sign it works: higher returns. An analysis Feigen and others published in 2022 showed that companies led by co-C.E.O.s generated average annual shareholder returns of 9.5 percent, versus 6.9 percent for those led by just one C.E.O. One major reason: two people who bring complementary skill sets — especially if one is more technically versed — can help companies better manage competition and a transition to artificial intelligence, he told DealBook.
A sign it doesn’t: tenure. Within the Russell 3000 index, the median tenure of a solo C.E.O. is 5.6 years, while that of co-C.E.O.s is just 2.6 years, according to the executive consulting firm Equilar.
Expect more co-C.E.O.s? Today, about 1.2 percent of the Russell 3000 index, or about 33 companies, are led by two leaders, according to Equilar. But Feigen thinks that percentage will grow to 15 percent to 25 percent over the next 15 years. We hope you’ve enjoyed this newsletter, which is made possible through subscriber support. Subscribe to The New York Times.
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