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  • Fox News figures are downplaying Trump’s moves towards a trade war with China

    Blog ››› ››› GRACE BENNETT


    Sarah Wasko / Media Matters

    As President Donald Trump ramps up a potential trade war with China, Fox News and Fox Business figures have been downplaying the damage his actions could do.

    Since the beginning of 2018, President Donald Trump has been rolling out increasingly aggressive tariffs on Chinese goods. In January, the president announced new tariffs targeting solar panels and washing machines, goods that primarily come from China. In March, he announced further tariffs on steel imports. And this week, the U.S. announced $50 billion worth of new tariffs, prompting the Chinese government to retaliate, placing tariffs on “128 American-made products” and asserting that the U.S. tariffs “violate World Trade Organization rules.”

    Following the news of China imposing retaliatory tariffs, CNN interviewed several economists who expressed concern that the increased economic hostility between the two nations might soon spiral into an all-out trade war. Joseph Brusuelas, chief U.S. economist at accounting and consulting firm RSM, told CNN, “This is a classic lose-lose proposition, no one wins.” After Trump threatened to impose additional tariffs, and the Chinese government promised to respond in kind, experts warned that additional tariffs would hurt both countries.

    Despite experts’ concerns, Fox News and Fox Business figures are downplaying fears of a trade war:

    • On America’s Newsroom, Fox’s Maria Bartiromo dismissed concerns about trade, commenting that she’s “not worried” about trade fears because she looks “at the broader picture.”

    • On Fox News’ Fox & Friends, host Steve Doocy downplayed Trump’s trade moves by claiming, “there are no tariffs,” arguing that “this is the starting point,” and “it’s all a suggestion, it’s all a negotiation.”

    • Fox News contributor Tammy Bruce argued that “this is not about a trade war,” and compared America’s trade deficit with China to “a battered woman situation.” She also asserted that ““this will, in the end, because of Trump’s ability to negotiate, work out well.”

    • During the same broadcast, Fox Business’ Charles Payne claimed that “President Trump [has reminded] us that we’re not in a trade war,” because, “China already won that.”

    • On Fox News Radio's The Brian Kilmeade Show, Fox’s Brian Kilmeade dismissed the possibility of a trade war, claiming, “I do believe this is what we call the pre-fight, and so far, it's hype. It doesn't mean there's actually going to be a Showtime, HBO main event.”

    • Trump sycophant Lou Dobbs dismissed those who claim there is no trade war, claiming that there already is a trade war with China, but the United States simply wasn’t “fighting it until this president arrived in Washington.”

    • Fox Business' Stuart Varney explained away stock market backlash to Trump's tariffs as "an emotional response,” and claimed that “all this talk of a trade war” is “overblown.”

    • Frequent Fox guest Ron Meyer referred to China’s retaliatory tariffs as “minor.”

    • Fox’s Charles Payne claimed that the stock market drop following the announcement of China’s retaliatory tariffs was actually Wall Street “not only overreacting but trying to intimidate the White House."

    • On America’s Newsroom, Bartiromo claimed that she’s “not afraid of a trade war.” and that Trump’s actions are “more of a negotiation.”

    • During an appearance on America’s Newsroom, Payne dismissed fears about a trade war by claiming “we’re already in a trade war. We have been fighting with one hand behind our backs.”

    • On Fox News’ Outnumbered, Fox’s Geraldo Rivera argued that China’s retaliatory tariffs were insignificant and represented “chump change,” and expressed his confusion about why the market responded “so emotionally” to China’s tariffs.

    • During the same broadcast, Fox’s Trish Regan expressed her dismay at unfair Chinese trade policies, and said, “If it takes throwing around the idea of a few tariffs … maybe that works. Maybe it is, indeed, the art of the deal.”

    • Fox’s Sean Hannity dismissed concerns about a trade war on his radio show, claiming, “I don’t think there’s ever going to be a trade war.”

    • On Fox News’ Outnumbered, Fox’s Dagen McDowell defended Trump’s “approach with China,” claiming that there is a “method to this madness,” and that we don’t know if these “tariffs will ever be put in place.

  • Trump’s pick for National Economic Council is a CNBC host who gives bad financial advice

    ››› ››› BOBBY LEWIS & MADELINE PELTZ

    President Donald Trump has told people he has chosen CNBC's Larry Kudlow to replace Gary Cohn as the director of the National Economic Council. Kudlow has no formal training in economics, and he has a history of making poor financial predictions, pushing conservative economic talking points, and making outrageous and offensive comments.

  • Evening news shows barely noticed the Senate vote for deregulating banks

    The CBO says this bill would make another big bank bailout slightly more likely

    Blog ››› ››› ZACHARY PLEAT


    Sarah Wasko / Media Matters

    Sixteen Senate Democrats and one independent senator joined Republicans to move forward with a bill that would weaken financial regulations and slightly increase the likelihood of a taxpayer bailout of large banks -- but you'd barely know it if you got your news from the evening cable and broadcast shows this week.

    The Economic Growth, Regulatory Relief, and Consumer Protection Act was first introduced in the Senate in November and primarily sponsored by Sen. Mike Crapo (R-ID). As The Fiscal Times reported, “The bill raises the threshold at which banks are considered systemically important and thus subject to stricter capital requirements and Federal Reserve supervision, from $50 billion to $250 billion.” The Washington Post noted that while this won’t apply to the largest banks like Goldman Sachs, JP Morgan, and CitiGroup, which are worth far more than $250 billion, it will decrease regulation on some banks such as SunTrust Banks and Fifth Third Bank, both of which received government bailouts during the 2007-2008 financial crisis. According to The New York Times, “only a handful of the biggest banks would face the toughest oversight” if this bill becomes law.

    With help from 16 Democrats and Sen. Angus King (I-ME), the bill survived a cloture vote 67-32 on March 6 and is expected to pass soon.

    A March 5 Congressional Budget Office (CBO) cost estimate of the bill explained that it would increase the risk of taxpayer bailouts of large banks by making bank failures and financial crises a little more likely:

    CBO’s estimate of the bill’s budgetary effect is subject to considerable uncertainty, in part because it depends on the probability in any year that a systemically important financial institution (SIFI) will fail or that there will be a financial crisis. CBO estimates that the probability is small under current law and would be slightly greater under the legislation.

    David Dayen explained more problems with this legislation in The Intercept:

    Republicans and Democrats who pushed S.2155 through the Senate Banking Committee must have heard Citi’s call. (They changed the definition of a custodial bank in a subsequent version of the bill. It used to stipulate that only a bank with a high level of custodial assets would qualify, but now it defines a custodial bank as “any depository institution or holding company predominantly engaged in custody, safekeeping, and asset servicing activities.”) The change could allow virtually any big bank to take advantage of the new rule.

    Multiple bank lobbyists told The Intercept that Citi has been pressing lawmakers to loosen the language even further, ensuring that they can take advantage of reduced leverage and ramp up risk. “Citi is making a very aggressive effort,” said one bank lobbyist who asked not to be named because he’s working on the bill. “It’s a game changer and that’s why they’re pushing hard.” A Citigroup spokesperson declined to comment.

    […]

    Aside from the gifts to Citigroup and other big banks, the bill undermines fair lending rules that work to counter racial discrimination and rolls back regulation and oversight on large regional banks that aren’t big enough to be global names, but have enough cash to get a stadium named after themselves. In the name of mild relief for community banks, these institutions — which have been christened “stadium banks” by congressional staff opposing the legislation — are punching a gaping hole through Wall Street reform. Twenty-five of the 38 biggest domestic banks in the country, and globally significant foreign banks that have engaged in rampant misconduct, would get freed from enhanced supervision. There are even goodies for dominant financial services firms, such as Promontory and a division of Warren Buffett’s conglomerate Berkshire Hathaway. The bill goes so far as to punish buyers of mobile homes, among the most vulnerable people in the country, whose oft-stated economic anxiety drives so much of the discourse in American politics (just not when there might be something to do about it).

    A Media Matters review of Nexis transcripts for evening and prime-time programs on CNN, MSNBC, and Fox News this week found scant coverage of this bill. MSNBC’s All In with Chris Hayes had a five-minute interview on March 5 with Sen. Sherrod Brown (D-OH), who opposes the bill. Fox News’ Special Report with Bret Baier mentioned the bill on March 6 for just 17 seconds. CNN gave it no evening news coverage at all.

    Evening news broadcasts on ABC, NBC, and CBS also failed to report on the bill this week. Only PBS’ NewsHour covered it, featuring a roughly six-minute interview on March 6 with Sen. Heidi Heitkamp (D-ND), who voted for cloture.