| | | |  | | By Eli Okun | | Presented by |  | | | |  | THE CATCH-UP | | | 
Stephen Miran is heading for speedy confirmation by the Senate to join the Fed. | Mariam Zuhaib/AP | FED UP: A new incoming governor and a surprising inflation report are strengthening the outlook for the Fed to start cutting interest rates next week. Vote of confidence: The Senate Banking Committee rushed forward Stephen Miran’s nomination to join the central bank on a 13-11, party-line vote, per POLITICO’s Jasper Goodman. And Republicans plan to confirm Miran with a full floor vote before the Fed gathers Tuesday for its next meeting, Semafor’s Burgess Everett reports. The controversy: The Council of Economic Advisers chair has said he’ll take a leave of absence from his White House job rather than resign it outright. That “has greatly troubled former White House officials, legal experts, economists and Democratic lawmakers,” who fear “a dangerous precedent undermining the Fed’s longstanding political independence,” NYT’s Colby Smith and Tony Romm report. But Republican senators brushed off the concern, noting that Miran is filling a term at the Fed that expires at the end of January. (Miran hasn’t committed to leaving at that point.) Sen. Thom Tillis (R-N.C.) cited the short-term nature of that arrangement, saying he wouldn’t back Miran for a longer term. Inflation nation: The producer price index this morning unexpectedly showed that wholesale prices fell in August by 0.1 percent, indicating some relief from inflation. The report was lower than economists’ prediction of a 0.3 percent increase. Now all eyes will be on tomorrow’s consumer price index, the more closely watched report. But stock markets already rallied on today’s news, reaching some record high numbers. More from the WSJ The upshot: Miran’s expected arrival, a better-than-expected inflation reading and worse-than-expected recent jobs number revisions all add up to a growing likelihood that the Fed, which always has to balance prices and employment, will finally let some air out of the tires. An interest-rate cut to help juice the labor market would be welcomed by President Donald Trump, who has attacked Fed Chair Jerome Powell for months for not doing so already. “‘Too Late’ must lower the RATE, BIG, right now,” Trump posted on Truth Social this morning, using his usual nickname for Powell. Heads up: “Dept. of Labor launches investigation into data collection process at BLS,” by CNN’s Elisabeth Buchwald: “The Department of Labor is initiating an investigation into how the Bureau of Labor Statistics collects and reports ‘closely watched economic data,’ according to a letter the department’s Assistant Inspector General for Audit, Laura Nicolosi, sent to Acting BLS Commissioner William Wiatrowski on Wednesday.” Looming in the background: the fate of Trump’s tariffs at the Supreme Court. There are potential ramifications not only for commerce and inflationary pressures, but also for Trump’s fiscal powers writ large, WSJ’s Greg Ip writes. If the justices side with Trump, it could allow the president to claim power over both tariffs and taxes that was previously Congress’ domain. On the other hand, some economists think a ruling against Trump would essentially amount to a tax cut for many American businesses, NYT’s Andrew Duehren writes. Good Wednesday afternoon. Thanks for reading Playbook PM. Drop me a line at eokun@politico.com.
| | | | A message from McDonald's: Starting this week, Extra Value Meals are back at McDonald's, so you can save when you make it a meal. To mark the moment, they're giving fans even deeper discounts on two of the most popular Extra Value Meals, the $5 Sausage McMuffin® with Egg Meal and $8 Big Mac® Meal, for a limited time. | | | | | | 8 THINGS YOU NEED TO KNOW | | 1. POLAND FALLOUT: After Poland and NATO shot down Russian drones in Polish airspace, the Trump administration and Republicans are reacting with sternness and warnings to Russian President Vladimir Putin. Senate Majority Leader John Thune indicated that the news could push forward sweeping Russia sanctions legislation: “There’s a lot of discussion now around, we need to move,” he said, per Punchbowl’s Andrew Desiderio, though Thune added that “technical issues” still need to be worked through. U.S. Ambassador to NATO Matthew Whitaker pledged that the U.S. stands with Poland and “will defend every inch of NATO territory.” The view from 1600 Penn: “What’s with Russia violating Poland’s airspace with drones? Here we go!” Trump posted on Truth Social. He’ll speak today with Polish President Karol Nawrocki, per Reuters’ Jeff Mason. But but but: Putin’s recent escalations signal that he’s refusing to retreat in his war on Ukraine. His actions in the past few weeks “looked like a fresh attempt to demonstrate that Russia is determined to dictate the terms for any end to the war,” NYT’s Anton Troianovski writes. 2. THE PURGE: “Kash Patel knowingly broke law when firing top officials, lawsuit alleges,” by MSNBC’s Ken Dilanian and Carol Leonnig: “The 69-page complaint was filed by former acting FBI Director Brian Driscoll and two other fired FBI leaders who claim they were the targets of ‘politically motivated retribution’ and are seeking ‘to vindicate their constitutional and legal rights.’ The suit cites a series of alleged conversations involving [FBI Director Kash] Patel and other senior Trump advisers that, if true, show an FBI leadership consumed by the whims of a Trump White House that targeted employees solely for political reasons.” The latest ruling: “Appeals court, weighing Trump’s Library of Congress takeover, reinstates copyright chief,” by POLITICO’s Josh Gerstein: “A divided three-judge panel of the D.C. Circuit Court of Appeals ruled Wednesday that Shira Perlmutter is entitled to continue to serve as the register of copyrights at the Library of Congress, despite the White House’s claim that Trump fired her from the post in May.” 3. TOP TALKER: Kamala Harris is back in the conversation with a buzzy new Atlantic excerpt of her forthcoming memoir, “107 Days,” that — among other things — makes clear she thinks Joe Biden should have dropped out of the presidential race sooner. “‘It’s Joe and Jill’s decision.’ We all said that, like a mantra, as if we’d all been hypnotized,” Harris writes. “Was it grace, or was it recklessness? In retrospect, I think it was recklessness.” Other notable bites:
- Harris says she observed that Biden was “able to discharge the duties of president” and there was no “conspiracy” to cover up “incapacity,” but his age led to “physical and verbal stumbles.”
- Harris still smarts at Biden world’s sidelining of her as VP, feeding negative narratives about her: “[G]etting anything positive said about my work or any defense against untrue attacks was almost impossible.” Describing negative West Wing reaction to a viral speech Harris gave about Gaza, she writes: “Their thinking was zero-sum: If she’s shining, he’s dimmed. None of them grasped that if I did well, he did well.”
4. FOR YOUR RADAR: “Boat Suspected of Smuggling Drugs Is Said to Have Turned Before U.S. Attacked It,” by NYT’s Charlie Savage and Helene Cooper: “A Venezuelan boat that the U.S. military destroyed in the Caribbean last week had altered its course and appeared to have turned around before the attack started because the people onboard had apparently spotted a military aircraft stalking it, according to American officials familiar with the matter. … [Legal specialists said that] if the boat had already turned away, that would further undermine what they saw as an already weak [Trump] claim of self-defense.”
| | | | Introducing Global Security: POLITICO’s weekly briefing on the policies, regulatory fights and industrial shifts shaping defense and security across continents. We connect what happens in Washington, Brussels and beyond to what gets funded, what gets built and who benefits. Subscribe this week for daily coverage from DSEI. | | | | | 5. ON THE HILL: As Senate Republicans go nuclear tomorrow to change chamber rules and confirm nominees in batches, Thune told the Washington Examiner’s David Sivak that he’ll still allow Republicans to place holds on individual nominees and have them removed from a group. Meanwhile, Senate Minority Leader Chuck Schumer reiterated today that Democrats may drive a hard bargain on reaching a government funding deal: He said Republicans’ proposed bill “can’t get our votes” and that Thune needs to negotiate, emphasizing that Democrats want changes to Republicans’ health care actions, per Semafor’s Burgess Everett. And then there’s this: In an unusual move, Schumer cued up a surprise vote on forcing the release of the Jeffrey Epstein files as an amendment to the National Defense Authorization Act, per POLITICO’s Jordain Carney. That could force senators to go on the record for a procedural vote on the measure (if not the actual amendment) — and could throw other NDAA negotiations into turbulence. 6. TRAIL MIX: In one of the clearest indications yet that Maine Gov. Janet Mills may run for Senate, she’s been interviewing potential campaign managers, Punchbowl’s Ally Mutnick and Andrew Desiderio scooped. But Mills still hasn’t made a final decision about whether to jump in. Motor City makeover: In Detroit, former state Sen. Adam Hollier announced that he’ll drop his congressional bid and run for Michigan secretary of state instead, per The Detroit News’ Melissa Nann Burke. That could clear the way for state Rep. Donavan McKinney to challenge Rep. Shri Thanedar more easily, after Thanedar opponents have split the Democratic primary vote for multiple cycles. 7. BLEEDING CUTS: “On the brink of a devastating canal collapse, a GOP district waits for Trump’s help,” by WaPo’s Joshua Partlow in Yakima, Washington: “[T]he crisis in rural, Republican-leaning eastern Washington is posing a stark test of federal government support for critical infrastructure in the era of funding clawbacks and staffing cuts driven by the U.S. DOGE Service. … The irrigation district has sought hundreds of millions in grants and loans from the U.S. Bureau of Reclamation but so far the Trump administration has yet to commit to help fund the project despite appropriations from the state and bipartisan urging from the state’s congressional delegation.” 8. BILL OF HEALTH: HHS Secretary Robert F. Kennedy Jr.’s anti-vaccine moves are undermining the nation’s trust in public health authorities, as Americans say by a 2-to-1 margin that they think recent guidance to get fewer vaccines is not rooted in science or facts, a new Reuters/Ipsos poll shows. Just 24 percent of adults think the guidance is based on science, compared to 48 percent who think it’s not; by 10 points, Americans say they’re concerned about their children’s vaccine access. And though Trump still supports Kennedy, behind the scenes he was unhappy about negative coverage of Kennedy’s ouster of CDC Director Susan Monarez, NYT’s Sheryl Gay Stolberg and Maggie Haberman report. Bubbling up: The Trump administration has drafted a potential executive order that would significantly limit Chinese experimental medicines, NYT’s Rob Copeland and Rebecca Robbins report. With billions of dollars on the line, there’s “furious behind-the-scenes lobbying” ongoing, with drugmakers arguing that the move would unleash chaos while Peter Thiel, Sergey Brin and other big investors advocate for a boost to the U.S. biotech industry.
| | | | A message from McDonald's:  
The return of Extra Value Meals ensures everyone can find everyday affordable pricing at McDonald's. | | | | | | TALK OF THE TOWN | | ON THE AIRWAVES — Fox News is ending Howard Kurtz’s Sunday “MediaBuzz” show and mixing up its weekend lineup. He’ll remain at the network, but “MediaBuzz” will be replaced by a new Sunday show, “The Sunday Briefing” with Peter Doocy and Jacqui Heinrich. There will also be a new Saturday show from Kayleigh McEnany, and Griff Jenkins, Johnny “Joey” Jones and Tomi Lahren are joining existing/expanding weekend shows as co-hosts. More from Axios OUT AND ABOUT — SPOTTED last night at Meridian International Center’s fall “Welcome to Washington” reception: Argentine Ambassador Alejandro Oxenford, Armenian Ambassador Narek Mkrtchʻyan, Belgian Ambassador Frédéric Bernard, Beninese Ambassador Agniola Ahouanmenou, Burkinabe Ambassador Kassoum Coulibaly, Dominican Ambassador María Isabel Castillo Báez, Ecuadorian Ambassador Pablo Zambrano Albuja, Georgian Ambassador Tamar Taliashvili, Haitian Ambassador Lionel Delatour, Latvian Ambassador Elita Kuzma, Malaysian Ambassador Muhammad Shahrul Ikram Yaakob, Moldovan Ambassador Vladislav Kulminski, Reps. Don Bacon (R-Neb.) and Sydney Kamlager-Dove (D-Calif.), Chris and Caroline Landau, Stuart and Gwen Holliday, Deborah Lehr, Natalie Jones, Francisco Sanchez, Fred Hochberg, Tom Monahan, Omar Vargas, Nicole Isaac, Jessie Niewold, Nancy Ziuzin Schlegel, Anna Gawel, Tom Coleman, Niel Grace, Miriam Smallman, Puru Trivedi, Danielle Najjar and Michael Schnabel. — Career Education Colleges and Universities hosted a reception at the Hamilton last night in honor of CECU alum Nicholas Kent, now undersecretary of Education. Speakers included Jason Altmire and Ted Mitchell. Also SPOTTED: Reps. Virginia Foxx (R-VA.), Glenn Grothman (R-Wis.) and Burgess Owens (R-Utah), Jack Bridgewater, Justin Camp, Barbara Snyder, Barbara Mistick, David Hoag, David Baime, Kara Freeman, James Bergeron, Mary Christina Riley and John Huston. MEDIA MOVE — Priya Ahmed is now a booking production assistant at Newsmax. She recently graduated from Columbia Journalism School. TRANSITIONS — Graydon Daubert is now a senior adviser in HUD’s Office of Public and Indian Housing. He previously worked for the House Appropriations Committee. … Dave Vorland is joining Chamber of Progress as senior director and head of the Blue Horizon Project. He previously worked at the Defense Department in the Biden and Obama administrations and is a Seth Moulton alum. … Jill Kerr has launched a strategic comms firm, Jill Kerr Communications. She is a Hill, Amazon and Capitol One alum. … … Michael Bilello has been named the first CEO of the American Whiskey Association. He most recently worked at the Wine & Spirits Wholesalers of America and SipSource. … Andrea Bitely is now chief comms officer for Mike Duggan’s independent Michigan gubernatorial campaign. She most recently had her own firm, Bitely Communications, and is a Bill Schuette and POLITICO alum. … Luminary Strategies has added Amalia Allen and Ethan Kelly as lead strategists. Both previously worked for the Harris campaign’s rapid response team. ENGAGED — Noah Sadlier, comms director for Sen. Pete Ricketts (R-Neb.), and Jude Al-Hmoud, deputy chief of staff for Rep. Ashley Hinson (R-Iowa), got engaged this weekend in Michigan. They were introduced in 2021 by Josh and Sarah Paciorek, who were their first two bosses when they moved to D.C. Pics WELCOME TO THE WORLD — Kamron Brant, senior legislative assistant at CFM Advocates, and Tara Brant, contracting officer at the Defense Department, welcomed Beau Brant on Aug. 20. Pic Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us on Signal here. Playbook couldn’t happen without our editor Zack Stanton, deputy editor Garrett Ross and Playbook Podcast producer Callan Tansill-Suddath. Correction: Yesterday’s Playbook PM misidentified the state GOP Sen. Jerry Moran represents. It is Kansas.
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