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‘It’s Not Incredibly Obvious What to Do’

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Fed chair Jerome Powell readily admitted that this moment for the U.S. economy continues to be weird, Punchbowl News reports.

Said Powell: “It is such an unusual situation. Ordinarily, when the labor market is weak, inflation is low, and when the labor market is really strong, that’s when you’ve got to be careful about inflation. So we have a situation where we have two-sided risk, and that means there’s no risk-free path.”

Later, Powell put it more bluntly: “It’s not incredibly obvious what to do.”

Republicans Eye Major Crime Bill Before Midterms

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“President Donald Trump and congressional Republicans are actively discussing a sweeping crime bill that would go far beyond their recent forays into DC’s criminal justice system,” Semafor reports

“The GOP’s plans are early and fluid but serious… Taking up a national crime bill as the midterm campaign heats up would help the party keep momentum on what it sees as a politically advantageous issue as polls show Trump’s handling of the economy losing favor with voters.”

“But steering a sweeping piece of legislation to Trump’s desk during an election year won’t be easy.”


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GOP Lawmaker Says Transgender People Are a ‘Virus’

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Rep. Ronny Jackson (R-TX) told Newsmax that transgender people need to be placed in institutions and barred from the internet.

Said Jackson: “We have to do something about this. We have to treat these people. We have to get them off the streets and we have to get them off the internet. We can’t let them communicate with each other.”

He added: “I’m all about free speech, but this is a virus, this is a cancer that’s spreading across this country that’s going to do great damage to normal, hard working, law abiding people.”

Another Bonus Quote of the Day

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“She’s a nasty human being. She hates her country. She hates our country so much she doesn’t have to be here. She’s disgusting, she’s vile. She’s literally accusing me of substance abuse. When have you ever seen me abuse any substance? She’s a liar and she’s a vile human.”

— Rep. Nancy Mace (R-SC), quoted by the HuffPost, on Rep. Ilhan Omar (D-MN).

Fed Cuts Interest Rates by Quarter Point

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“The Federal Reserve on Wednesday approved a widely anticipated rate cut and signaled that two more are on the way before the end of the year as concerns intensified over the U.S. labor market,” CNBC reports.

“Newly installed Governor Stephen Miran was the only one of those voting against the quarter-point move, instead advocating for a half-point cut.”

Wall Street Journal: “A narrow majority of officials penciled in at least two additional cuts this year, implying consecutive moves at the Fed’s two remaining meetings in October and December. The projections hint at a broader shift toward concern about cracks forming in the job market in an environment complicated by major policy shifts that have made the economy harder to read.”

Mikie Sherrill Holds Solid Lead for New Jersey Governor

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A new Quinnipiac poll in New Jersey finds Mikie Sherrill (D) leading Jack Ciattarelli (R) in the governor’s race, 49% to 41%.

Six percent are either undecided or did not provide a response.

Said pollster Tim Malloy: “With just under seven weeks to go, the race for the Trenton State House leans Sherrill’s way as Ciattarelli lags on three key character issues: honesty, empathy and leadership.”

Raskin Calls for Subpoena of Big Banks in Epstein Case

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Rep. Jamie Raskin (D-MD) called for the House Judiciary Committee to subpoena the CEOs of four major banks, J.P. Morgan Chase, Bank of New York Mellon, Bank of America and Deutsche Bank, NBC News reports.

The Maryland Democrat called for the subpoena “in order to get the suspicious transaction reports these four banks have flagged to the government” related to the Jeffrey Epstein case.

Chuck Schumer Has a Lot in Common with John Boehner

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Josh Huder: “Chuck Schumer is facing the problems well known to House Republican leaders. Internal divisions have placed him in a losing position. As a result, coalition management becomes the priority. How can he satisfy members clamoring to oppose Trump and those wary of flagging poll numbers and elections? You pull a John Boehner. Shutdown the government to offer a fig leaf to the a base until defeat is obvious and some face-saving message can be found…”

“Put simply, this shutdown decision is a Democratic coalition issue masquerading as a Republican v. Democratic showdown. Democrats will not win a shutdown. So how do you gracefully exit an impossible situation?”

Matt Glassman: “In some very real sense, it doesn’t matter if the liberals are wrong about a shutdown on the substantive political merits. If they are a substantial part of your coalition, you need to cater to their preferences. Leaders who don’t follow that maxim are not long for their jobs.”

House GOP Races to Cool Dissent Over Tariffs

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Bloomberg: “Anxiety within the Republican ranks over Donald Trump’s trade policies bubbled to the surface on the House floor this week when a small group of lawmakers pushed back on the president’s signature foreign economic policy and sought a bigger say in how tariff levels are set.”

“The dissent was short-lived but it showed intra-party fractures on tariffs, the economic effects of which threaten to become a central issue in next year’s mid-term elections.”

About Political Wire

goddard-bw-snapshotTaegan Goddard is the founder of Political Wire, one of the earliest and most influential political web sites. He also runs Political Job Hunt, Electoral Vote Map and the Political Dictionary.

Goddard spent more than a decade as managing director and chief operating officer of a prominent investment firm in New York City. Previously, he was a policy adviser to a U.S. Senator and Governor.

Goddard is also co-author of You Won - Now What? (Scribner, 1998), a political management book hailed by prominent journalists and politicians from both parties. In addition, Goddard's essays on politics and public policy have appeared in dozens of newspapers across the country.

Goddard earned degrees from Vassar College and Harvard University. He lives in New York with his wife and three sons.

Goddard is the owner of Goddard Media LLC.

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