The Hill's 12:30 Report: Stocks sink as Trump fights with Fed, China

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--> A midday take on what's happening in politics and how to have a sense of humor about it.*

*Ha. Haha. Hahah. Sniff. Haha. Sniff. Ha--breaks down crying hysterically.


The Hill's 12:30 Report: Trump labels Fed chief an 'enemy' | Powell says more rate cuts can't solve trade war | China announces $75B in new tariffs | Stocks sink as trade fight intensifies | Why Trump's immigration moves might not be a political winner | Dem field shrinks with Moulton dropping out | Says Biden would be 'fantastic president' | Disney+ prepares to challenge Netflix | National Sponge Cake Day


IN 2020 NEWS

They're dropping like flies:

Via The New York Times's Alexander Burns, Rep. Seth MoultonSeth MoultonPortland: The Pentagon should step up or pipe down House panel votes to constrain Afghan drawdown, ask for assessment on 'incentives' to attack US troops Overnight Defense: House panel votes to ban Confederate flag on all Pentagon property | DOD report says Russia working to speed US withdrawal from Afghanistan | 'Gang of Eight' to get briefing on bounties Thursday MORE (D-Mass.) is ending his presidential campaign.

Moulton said in an interview: "I think it's evident that this is now a three-way race between Biden, Warren and Sanders, and really it's a debate about how far left the party should go."

What's next for Moulton: "Mr. Moulton said he would run for re-election to the House, representing a coastal district to the north and east of Boston. Several other Democrats filed to run for his seat while Mr. Moulton was a presidential candidate, and he is likely to face a contested primary." 


Moulton will say at the Democratic National Committee's meeting later today: "I will be campaigning my ass off for whoever wins our nomination in 2020." (Via The Wall Street Journal's Eliza Collins

Who Moulton supports: Moulton told The Washington Post, "I think Vice President Biden would make a fantastic president. He's a mentor and a friend, and I've been impressed by the campaign he has run so far."



They are all now running for other offices. But as The New York Times's Alexander Burns pointed out, "How long will it take to winnow the candidates who aren't under pressure to file for House or gov or Senate?"

Here's a list of the 2020 candidates who are left:


Happy Friday! I'm Cate Martel with a quick recap of the morning and what's coming up. Send comments, story ideas and events for our radar to -- and follow along on Twitter @CateMartel and Facebook.

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PROGRAMMING NOTE: The 12:30 Report will be off next week but will resume after Labor Day. Enjoy the last week of August and don't work too hard!



I'll take controversial statements for $400, Alex:

This morning, President TrumpDonald John TrumpLincoln Project ad dubs Jared Kushner the 'Secretary of Failure' Pence: Chief Justice Roberts 'has been a disappointment to conservatives' Twitter bans Trump campaign until it deletes tweet with COVID-19 misinformation MORE slammed Federal Reserve Chairman Jerome Powell, questioning whether his own hand-picked Fed chief is a bigger "enemy" than Chinese President Xi Jinping

Trump tweeted: "As usual, the Fed did NOTHING! It is incredible that they can 'speak' without knowing or asking what I am doing, which will be announced shortly. We have a very strong dollar and a very weak Fed. I will work 'brilliantly' with both, and the U.S. will do great. My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?"



This morning, Jerome Powell suggested this morning that the Federal Reserve may cut interest rates, but he warned it may not be enough to head off trouble from Trump's trade wars.


Does it feel like everyone is looking at you? Because everyone is looking at you: 

Via The Hill's Sylvan Lane, all eyes are on Federal Reserve Chairman Jerome Powell amid fears of an impending recession.

Why Powell's speech this morning was important: "Washington and Wall Street will be parsing Powell's words Friday morning as he speaks for the first time since a recent series of economic red flags spurred fears of an impending recession. In the weeks following last month's rate cut by the Fed -- its first since 2008 -- Trump has escalated his trade war with China, stock markets have turned volatile and dismal data from around the world has signaled a potential economic slowdown."



Happy Friday! Here are more tariffs:

This morning, China announced that it will impose tariffs on $75 billion in U.S. goods.

The tariffs: "The country's State Council said tariffs of 5 percent to 10 percent will be imposed on a variety of American goods in two batches, with the first going into effect next month and a second scheduled for December, multiple media outlets reported, citing state-run media. The second batch of tariffs will reportedly include a 25 percent tariff on all U.S. automobiles." 



In a series of tweets, President Trump announced that he will be "responding" to China's tariffs.

Part of Trump's tweets: "We don't need China and, frankly, would be far...better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Read Trump's full series of tweets:



U.S. stocks dropped sharply after President Trump tweeted that he would respond to China's tariffs. The numbers: "The Dow Jones industrial average fell more than 420 points, a 1.6-percent drop ... the Nasdaq composite fell 2 percent after Trump's tweets, while the S&P 500 index fell 1.7 percent."


It may not be a chicken dinner:

Via The Hill's Niall Stanage, "President Trump is ramping up his rhetoric on immigration, but it may not be the political winner he thinks."

Why: "Trump's approach to immigration plays well with his base, but there are deep doubts about its political efficacy with the broader electorate."

Examples: "On Wednesday, Trump raised the idea of abolishing 'birthright citizenship' -- the concept, enshrined in the Constitution, that anyone born in the United States is automatically an American citizen. This came on the heels of a move to indefinitely extend the period for which families can be held in immigration detention facilities. Trump also continues to press the case for building a wall on the border with Mexico, while assailing Democrats for being overly lax, as he sees it, on border security." 


Rest in peace:

Billionaire conservative activist David Koch has died at the age of 79 after suffering from deteriorating health.

Read his obituary in The Wall Street Journal:



Interesting read -- not a good year to be a governor running for president:

Via The Hill's Jonathan Easley, Democratic governors are fizzling out in the race for the 2020 Democratic presidential nomination.

How so: Washington Gov. Jay InsleeJay Robert InsleeInslee, GOP's Culp advance in Washington governor's race Governors call for Trump to extend funding for National Guard coronavirus response Washington state officials confirm federal officers leaving Seattle MORE and former Colorado Gov. John HickenlooperJohn HickenlooperRepublicans uncomfortably playing defense Obama announces first wave of 2020 endorsements Gardner says GOP committee should stop airing attack ad on opponent Hickenlooper MORE have both dropped out. That leaves Montana Gov. Steve BullockSteve BullockRepublicans uncomfortably playing defense 300 green groups say Senate has 'moral duty' to reject Trump's public lands nominee Lincoln Project targets Senate races in Alaska, Maine, Montana with M ad buy MORE as the only remaining governor running for president. Bullock's campaign is also struggling.  

Why this is notable: "Governor's mansions were once reliable steppingstones to the White House for members of both parties."



In The Concord Monitor, Paul Steinhauser spoke with Rep. Tim RyanTimothy (Tim) RyanThe Hill's Coronavirus Report: HHS Secretary Azar says US plans to have tens of millions of vaccine doses this fall; Kremlin allegedly trying to hack vaccine research Democrats see victory in Trump culture war House Democrat calls for 'real adult discussion' on lawmaker pay MORE (D-Ohio) and former Rep. John DelaneyJohn DelaneyCoronavirus Report: The Hill's Steve Clemons interviews Rep. Rodney Davis Eurasia Group founder Ian Bremmer says Trump right on China but wrong on WHO; CDC issues new guidance for large gatherings The Hill's Coronavirus Report: Kansas City Mayor Quinton Lucas says country needs to rethink what 'policing' means; US cases surpass 2 million with no end to pandemic in sight MORE (D-Md.), who both vowed to stay in the race.



Omg, these are hilarious: 

Full-size photos:


Jay Inslee is embracing The Onion:



The House and Senate are out.

President Trump is in Washington, D.C. Vice President Pence has no public events on his schedule.

12:30 p.m. EDT: President Trump has lunch with Secretary of State Mike PompeoMichael (Mike) Richard PompeoOvernight Defense: Esper says 'most believe' Beirut explosion was accident, contradicting Trump | Trump later says 'nobody knows yet' what happened in Lebanon | 61-year-old reservist ID'd as fourth military COVID-19 death Meadows defends Trump's description of Beirut explosion as an 'attack' Pompeo urges US companies to block downloads of Chinese apps MORE

10:40 p.m. EDT: President Trump and first lady Melania TrumpMelania TrumpThe Hill's Morning Report - Presented by Facebook - Senate GOP, House Democrats begin battle over trillion bill Melania Trump announces plans to renovate White House Rose Garden Trump tweets photo of himself wearing a mask MORE leave for France for the Group of Seven (G-7) summit.



11:30 a.m. EDT: "A federal appeals court hears oral argument on a case concerning a congressional subpoena for President Trump's financial records." Livestream:

6:30 p.m. EDTCindy McCain sits down with NBC's Andrea Mitchell on "NBC Nightly News with Lester Holt." 

6:35 p.m. EDT: South Bend, Ind., Mayor Pete ButtigiegPete ButtigiegCNN's Ana Navarro to host Biden roundtable on making 'Trump a one-term president' Former Indiana Gov. Joe Kernan dies How Republicans can embrace environmentalism and win MORE (D) speaks at a town hall at Nashua Community College in New Hampshire. Livestream:



Today is National Sponge Cake Day.


A streaming competitor in town:

Via Forbes's Peter Csathy, "Disney recently announced that it would offer its three flagship direct-to-consumer video services (Disney+, Hulu, and ESPN+) for an irresistibly low monthly price of $12.99. Yes, that's right. 'Magically,' the same price as Netflix's standard monthly plan."

Keep in mind: Netflix is losing "The Office" and "Friends" from its platform.


And to get your weekend off to a great start, here's a cat in a disguise. I'm pretty sure this cat is about to fire its owner: