Weekly Wrap: Make it rain on the Trump bill
Happy Friday! This is the Breitbart Business Digest Weekly Wrap, where we take a look at the week’s ups and downs in economic and financial news.
This week, the economy was overwhelmed by rising gas prices. Treasury Secretary Scott Bessent discussed some interesting topics, President Trump teased something new in app stores, and visions of having Trump Dollars started circulating.
It’s all about Donald, baby
Treasury Secretary Scott Bessent confirmed on Thursday that plans are underway for a $250 bill featuring President Donald Trump. Bessent, operating out of the Treasury building with a view of the White House, has ordered a prototype to be developed.
The initial report from the washington post caught the attention of many progressive Americans, akin to a sudden splash of water. Just imagine paying for your morning coffee with Trump Dollars at a trendy café in places like Brooklyn or Berkeley!
However, this possibility is not happening just yet. Bessent pointed out that legislation must change to allow living presidents’ faces on currency. A bill proposed last year by Rep. Joe Wilson (R-South Carolina) would mandate the creation of $250 bills featuring Trump. But Democrats are likely to block this bill, maybe indefinitely—even if the Senate lets it progress.
A Calvin Coolidge coin was minted recently for the 150th anniversary of his birth, and similar plans are in motion for commemorative coins featuring Trump as the nation approaches its 250th anniversary. If these $250 bills become real, they might be cumbersome to carry around. Support for Trump remains strong among many Americans, and as Democrats try to halt this bill, those notes could end up becoming collector’s items. Who knows? Years from now, you might trade one for a handful of regular bills.
Best breakfast in Warsh
By the way, Bessent had breakfast on Friday with the new Fed chair, Kevin Warsh. “As President Reagan said, it’s a new day at the Fed,” he shared with Larry Kudlow during an event at the Reagan Presidential Library.
Bessent mentioned that the Treasury and the Fed hold regular meetings over breakfast or lunch, alternating locations. He humorously referred to these gatherings as “away games” and “home games.”
Bessent noted, “I went to an away game at the Fed, and the food is much better there. They print their own money, after all.” He also expressed approval for Warsh’s idea of removing forward guidance from the Fed, though he joked that this probably doesn’t apply to their meal menus.
There’s an app for that
Have you heard about the new app? You can now download the official Trump account app, which is integral to the launch of a new government initiative to help kids save.
The actual accounts won’t be available until July 4th, but registration is open now. These accounts function as tax-deferred savings for kids, similar to IRAs for young adults. If you welcomed a child last year or during Trump’s tenure, the government will contribute $1,000 to their account. Parents can add up to $5,000 a year, and some employers are matching contributions. New charities are also popping up to assist families in need.
Bessent explained to Kudlow that one major advantage of Trump’s initiative is that it encourages financial literacy. Kids with investments in broad, low-cost S&P 500 funds feel motivated to grasp the significance of profits and innovation in the economy.
It’s unfortunate Kudlow didn’t inquire if kids could update the app to see how many Trump bills they could buy with their funds.
America wakes up
But food and apps weren’t the only offerings at the Reagan Library on Friday. Bessent’s keynote speech titled “While America Was Sleeping” carried considerable weight and humanity, unlike much we’ve heard from economic officials lately.
It’s worth perusing the whole speech, but we understand you’re busy, so we can summarize.
Spoiler alert! Here it is.
America has woken up.
We recognize that a resilient economy is the foundation of a strong republic.
The health of our economy can be gauged not just by production, but by who backs it.
A secure supply chain is just as crucial as stock indexes. Its production capacity is its strength.
Trade, industrial, and national security policies must align; otherwise, each will falter alone.
This closing line hints at Franklin’s warning during the signing of the Declaration of Independence: “We all have to come together.” That sentiment comes from the man featured on our $100 bill, suggesting that without unity, we might all face dire consequences.
The economy doesn’t run on smoke
The economy is grappling with soaring oil and gas prices, currently around $100 a barrel.
This week, the Chicago Fed’s National Activity Index turned positive, just as the Dallas Fed’s Manufacturing Business Index did. The Richmond Fed’s manufacturing index exceeded expectations as well. The Atlanta Fed noted that sales growth is expected to exceed 5%. Durable goods orders also surprised analysts. With corporate profits on the rise—the lifeblood of the economy—stocks are doing well and hitting new records frequently. Meanwhile, unemployment claims remain low, the trade deficit shrank in April, and business inventories kept climbing. Chicago’s PMI saw its largest single-month increase ever, with new orders reaching highs not seen since the pandemic’s recovery started in 2022.
Inflation continues to be a concern, as evidenced by the personal consumption expenditure price index released for April. Plus, rising gas prices add to the strain. Interestingly, the monthly growth in April was less than expected and much slower than March. Despite pump pressure, private consumption held steady. Spending on leisure items and dining out rose sharply, suggesting people are finding ways to enjoy themselves, even though official consumer sentiment looks bleak.
Istanbul was once Constantinople
Going back 573 years, the Ottoman forces led by Mehmed II breached the Theodosian Walls of Constantinople, marking the fall of the Byzantine Empire.
This event significantly altered trade routes along the Silk Road, though the Ottomans didn’t close them off entirely. Instead, they enforced tolls and collected rents at key points, which might resonate with some. These fees increased costs for European merchants looking to import goods, pushing them to seek new routes—eventually leading to expeditions like those of Columbus and da Gama and ushering in the Age of Discovery. This set the stage for what would become the United States across the western ocean.
