US-Iran Sign Deal, Fed Holds as Warsh Takes Helm, More

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Bloomberg News Now 6 min 10 speakers 3 chapters transcribed 3 months ago
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Carol Masser 0:01
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Doug Krisner 0:31
News When You Want It with Bloomberg News Now. I'm Doug Krisner. President Trump has electronically signed an interim deal to end the war with Iran. Here is Trump speaking to reporters after dining with French President Emmanuel Macron at the Palace of Versailles.
Did you sign the MOU?
Bill Pulte 0:50
It's signed now. It's signed? He signed it in Versailles.
Doug Krisner 0:54
Iran's foreign ministry confirmed the signing by both sides. So this deal is now in effect. Pakistan was a mediator in this negotiating process. And tonight, Prime Minister Shabazz Sharif said Iran will instantly reopen the Strait of Hormuz and the U.S. will immediately lift its blockade. Now, this agreement also includes Iran's potential access to a $300 billion development program and immediate sanctions waivers of Iranian crude oil. It does not restrict Iran's nuclear program. Discussions on that issue will be taking place over the next 60 days. Here is Bloomberg's John Harney.
John Harney 1:33
The nuclear program is going to be negotiated, and we'll see what happens at the conclusion of those negotiations. Now, Iran has claimed all along that it does not seek to possess a nuclear weapon. Of course, there's been intelligence and various countries have said that that's exactly what they have been trying to do. So we'll see what happens, what the result of these negotiations will be.
Doug Krisner 1:59
That was Bloomberg's John Harney. The Fed's policy committee voted unanimously to leave interest rates unchanged today. The Fed funds rate was held steady in a range of 3.5% to 3.75%. And at the same time, officials signaled their next move may be to raise rates, not cut them, given the outlook for higher inflation. Here is Fed Chair Kevin Warsh at his first post-meeting news conference.
Kevin Warsh 2:24
Persistently high prices are a burden for the American people.

What recent deal has President Trump signed with Iran?

Kevin Warsh 2:30
But the recent past need not be prologue. I am pleased to report that that members of the FOMC are unambiguous and unanimous. This committee will deliver price stability.
Doug Krisner 2:44
Warsh arrived at the Fed last month promising change, and in his opening remarks, he announced the creation of multiple task forces aimed at changing the way the Fed operates.
Kevin Warsh 2:55
I'm appointing a task force in each of five areas that are central to the broad conduct of monetary policy. First, Fed communications. Second, the Fed's balance sheet. Third, our use and reliance on existing data sources. Fourth, productivity and jobs in an era of transformation. And last, the Fed's inflation frameworks.
Doug Krisner 3:20
Now, Warsh did rule out reexamining the Fed's 2% inflation target. In the wake of the Fed meeting, money markets have fully priced in a quarter point Fed rate hike by November and another hike by March of next year. The equity market declined today in response to the Fed's hawkish message. We had the S&P 500 dropping 1.2%, and in the Treasury market, short-term yields spiked. The two-year jumped 13 basis points, last quoted in New York at 4.18%. President Trump has forced the Senate to postpone the confirmation hearing for Jay Clayton as the next director of national intelligence. We have more from Bloomberg's Amy Morris in Washington.
Amy Morris 4:01
Trump's maneuver threw a wrench into Senate leaders' plans to quickly install Clayton before loyalist Bill Pulte takes the position on an acting basis on Friday. Senator Mark Warner, ranking Democrat on the Senate Intelligence Committee, says it also pulled the rug out from under their bipartisan negotiations.
Bill Pulte 4:17
Bill Pulte, to our knowledge, doesn't even have a security clearance. And this is something that, again, Republicans and Democrats alike have expressed huge consternation.

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