Bloomberg News Now: Trump's Tariff Check Idea, Musk's AI Data Center, Fed Minutes, and Comey Setback

Market Update and Fed Expectations

• 📈 The S&P 500 gained 25 points, the Nasdaq 132, and the Dow 47, halting a four-day slide on Wall Street.
• 📉 Traders have significantly reduced expectations for a Federal Reserve rate cut in December.
• ⚠️ This shift is due to the Bureau of Labor Statistics not publishing an October employment report, with data to be included in the November report.
• 📊 Weekly jobless claims and the delayed September jobs report are expected tomorrow.

Federal Reserve Minutes and Policy

• ⚖️ The latest Fed minutes reveal a divided committee, with differing views on inflation and unemployment outlooks.
• 🏦 Most participants agreed on halting the run-off of securities from the Fed's balance sheet starting December 1st.
• 🔑 Governor Stephen Myron advocates for reworking Wall Street regulations before addressing other economic questions related to the Fed's balance sheet.

Trump's Tariff Check Proposal

• 💰 Republican lawmakers are resisting President Trump's proposal to send $2,000 checks to working-class households.
• 💸 The White House suggests funding the checks with tariff revenue, but lawmakers prefer using it to reduce the deficit.
• 🗣️ National Economic Council Director Kevin Hassett discussed the need to control inflation and the Fed's past struggles with it.

Elon Musk's xAI Data Center in Saudi Arabia

• 🇸🇦 Elon Musk's AI startup, xAI, plans to build a 500-megawatt data center in Saudi Arabia with the kingdom's AI Venture Humane.
• ⚡ The project will rely on chips from Nvidia, with an initial 50MW phase one.
• 🤝 Musk announced the plans alongside Nvidia CEO Jensen Huang at a U.S.-Saudi investment forum.

James Comey Legal Setback

• ⚖️ The prosecution of former FBI Director James Comey faces a new hurdle as the Justice Department acknowledged the full grand jury did not review the final indictment.
• 🏛️ Comey's lawyers argue this is grounds for dismissal, citing the case being brought out of President Trump's animosity towards Comey.
• 🚫 Comey has pleaded not guilty to charges of making a false statement and obstructing Congress.