Key Takeaways
- Kevin Hassett, Director of the White House National Economic Council, expressed concerns over the Federal Reserve's independence, citing dramatic cost overruns in Fed building renovations and stating the U.S. economy is not booming because of the Fed.
- Hassett also indicated that the U.S. jobless rate is being influenced by federal workforce cuts, noting a significant reduction in federal employment.
- FHFA Director Bill Pulte highlighted the powerful impact of institutional buying in the housing market and affirmed President Trump's focus on housing affordability, including potential measures to restrict institutional investors from purchasing single-family homes.
- AbbVie (ABBV) has secured exclusive rights to develop, manufacture, and commercialize RC148, a novel bispecific antibody for advanced solid tumors, outside of Greater China, involving an upfront payment of $650 million and potential milestone payments up to $4.95 billion.
Hassett Criticizes Federal Reserve, Cites Economic Headwinds
Kevin Hassett, the Director of the White House National Economic Council, has voiced strong opinions regarding the Federal Reserve's operations and its impact on the U.S. economy. Hassett stated that the economy is not currently booming due to the Federal Reserve's restrictive monetary policy. He emphasized the importance of respecting the Fed's independence but also raised questions about its transparency and effectiveness.
Hassett specifically pointed to "dramatic cost overruns" in the renovation of the Fed's building, suggesting that the plans appear "inconsistent with testimony" from Fed Chair Jerome Powell. These comments come amidst reports of grand jury subpoenas against the Fed concerning alleged fraud related to the headquarters renovation.
Jobless Rate Impacted by Federal Workforce Reductions
Addressing the labor market, Hassett attributed changes in the U.S. jobless rate to cuts in the federal workforce. He noted that federal government employment has seen a significant reduction, with approximately 277,000 fewer federal jobs since January. Despite this, Hassett expressed optimism about the administration's policies, particularly those aimed at strengthening domestic manufacturing, which he believes will lead to increased hiring in the latter half of the year.
Hassett also commented on reports that President Trump had not been briefed on the Department of Justice's (DOJ) case against the Federal Reserve.
FHFA's Pulte Addresses Institutional Housing Market Influence
In the housing sector, Federal Housing Finance Agency (FHFA) Director Bill Pulte highlighted the "very powerful" role of institutional buying in the market. Pulte affirmed that President Trump is focused on housing and affordability, with plans to introduce measures to address these concerns. This includes potential actions to ban large institutional investors from purchasing more single-family homes, a move aimed at making homeownership more accessible for individuals.
Pulte also indicated that the U.S. has initiated the purchase of $200 billion in mortgage bonds through Fannie Mae (FNMA) and Freddie Mac (FMCC), a strategy intended to lower borrowing costs and narrow mortgage spreads. The FHFA director confirmed that his agency has prepared various options for the President regarding housing affordability, with a decision expected in the coming months on a potential IPO for Fannie Mae and Freddie Mac.
AbbVie Secures Rights to Cancer Treatment RC148
In corporate news, AbbVie (ABBV) has announced an exclusive licensing agreement with RemeGen for the development, manufacturing, and commercialization of RC148 outside of Greater China. RC148 is a novel PD-1/VEGF bispecific antibody currently in development for multiple advanced solid tumors, including certain lung cancers.
The deal involves an upfront payment of $650 million to RemeGen, with potential for up to $4.95 billion in additional milestone payments and tiered double-digit royalties on net sales. This agreement strengthens AbbVie's oncology portfolio and offers new opportunities for combination regimens with its existing antibody-drug conjugates.
UK Government to Provide Business Rates Aid for Pubs
The UK government is set to announce business rates aid for pubs in the coming days. This move comes amid pressure to support the hospitality sector, which has been facing significant financial challenges. The aid package is expected to include business rates relief and measures to reduce licensing red tape, following concerns over rising costs and the unwinding of Covid-era discounts.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.