Situational awareness: The Dow Jones Industrial Average fell 2% (497) today, while the S&P 500 fell 1.9% and Nasdaq Composite dropped nearly 2.3%. All three are now in correction territory.
1 big thing: Trump burns the firewalls
As we approach the weekend, it's worth remembering two abnormal signals to the world this week from President Trump.
Driving the news: In two cases involving his China trade war, President Trump suggested the U.S. should ignore historic separations of power and precedent if it yielded good results, Bloomberg's Shawn Donnan writes.
- Trump said the Federal Reserve should keep rates low to help the economy weather the trade war.
- Trump suggested he'd help free a Huawei executive that the U.S. is currently trying to extradite from Canada.
Why it matters: "U.S. officials have struggled for decades to convince suspicious foreign counterparts about the separation of powers ... They didn’t persuade all of the people all of the time — but the framing was central to America’s ability to lead by example," Donnan notes.
- One example: "The U.S. worked hard to convince Japanese governments since the 1980s, for example, to stop trying to influence currency markets via public statements, according to Mark Sobel, a former senior Treasury official and U.S. representative to the International Monetary Fund."
- “'We used to criticize everybody else for open-mouthed operations,' Sobel said."
- "When we open our jaws about currency matters, it definitely gives license to others.”
Between the lines: There's been no Federal Reserve chairman in recent memory who has had to defend the central bank's political independence as much as Jerome Powell, Axios' Courtenay Brown notes.
- Any shift in Powell's tone about future interest rate hikes will be met with skepticism about whether or not Trump is getting to him.
- What makes Trump different is that his Fed criticism is public for everyone (and other world leaders & central bankers) to hear.
The bottom line: Norms and precedents are boring. The lack of them is interesting, but almost always at a severe cost.
Bonus: Pic du jour
Ruth Bader Ginsburg speaks during a naturalization ceremony at the Rotunda of the National Archives, which held the ceremony to mark Bill of Rights Day.
2. What you missed
- Chris Christie told Trump he doesn't want to be considered to replace John Kelly as White House chief of staff. Go deeper.
- A Facebook bug in late September allowed outside apps to access photos they weren't supposed to, including some that users uploaded but hadn't posted. Go deeper.
- It looks like Robinhood's new checking account, which pays 3% interest, is not going to fly. Go deeper.
- Michael Cohen insists Trump knew about the hush money he gave to Stormy Daniels and Karen McDougal. Video.
- 1 podcast thing: Axios' Dan Primack talked with the former attorney for Karen McDougal about what we learned this week about Trump, payoffs and the National Enquirer. Listen.
3. 1 fun thing
"Charlie Brown, Snoopy and the 'Peanuts' crew will have a new home on Apple’s streaming service," the AP reports.
- "The global children’s content and brands company will develop and produce original programs for Apple including new series, specials and shorts based on the beloved characters."