The daily business briefing: August 21, 2018

1. Trump repeats criticism of Fed rate hikes

President Trump said Monday he was "not thrilled" with Federal Reserve Chairman Jerome Powell for raising interest rates. The Fed has made two quarter-point rate hikes this year and envisions two more. Trump nominated Powell last year to replace former Fed Chair Janet Yellen. Trump gave investors the jitters in July when he first publicly criticized the central bank's rate hikes, which are meant to keep the economy from overheating as it picks up steam and the job market gains strength. Trump said the Fed should be keeping rates lower to boost the economy and strengthen his hand in trade talks. U.S. presidents rarely criticize the Fed, as its independence is widely seen as crucial for the stability of the economy. U.S. stock-index futures inched higher early Tuesday, as investors awaited the Wednesday release of the minutes from the Fed's most recent meeting.

Reuters MarketWatch

2. Trump administration proposes scrapping Obama-era restrictions on coal plants

The Trump administration on Monday moved to reverse landmark Obama-era environmental rules imposed to curb power-plant emissions, The Wall Street Journal reported. Andrew Wheeler, President Trump's acting administrator of the Environmental Protection Agency, signed the proposal, which the administration had indicated it would do to help coal-burning plants compete with natural gas and other cleaner energy sources. The Journal reviewed a copy of the proposal, which would do away with federal restrictions on coal plants and leave regulation to the states. The plan also rolls back mandates requiring coal plants to use updated technology. "The entire Obama administration plan was centered around doing away with coal," Wheeler told the Journal in an interview. The move is expected to face a challenge in court.

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The Wall Street Journal The Hill

3. Companies complain about China tariffs as hearings start

The Trump administration on Monday started six days of hearings on President Trump's proposed tariffs of 10 percent to 25 percent on $200 billion in imported Chinese goods. The levies could take effect as soon as next month. Trump already has hit China with 25 percent tariffs on $34 billion in imports, and taxes on another $16 billion will start this week. China has struck back with its own tariffs in retaliation. The proposed additional levies would mark a major escalation in the trade war, subjecting nearly 40 percent of imports from China to heavy taxes. In filings to the Trump administration, many companies that import from China complained that the tariffs would force them to raise prices, find new suppliers, or lose business to foreign rivals that will not have to pay the tariffs on Chinese components and machinery.

Bloomberg The Associated Press

4. Microsoft uncovers more Russian hacking ahead of midterms

Microsoft said Tuesday it had uncovered new hacking attempts linked to the Russian government ahead of the midterm elections. The software maker said the hackers created fake internet domains spoofing two Trump-skeptical U.S. conservative organizations — the Hudson Institute and the International Republican Institute — as well as others made to look like they belonged to the Senate. The revelation came weeks after Microsoft discovered a similar hacking attempt targeting Sen. Claire McCaskill (D-Mo.), who revealed that Russian hackers had tried to access her computer network. The hacking attempts were similar to those intelligence agencies say Russia used ahead of the 2016 elections to help President Trump and hurt his Democratic rival, Hillary Clinton.

The Associated Press

5. Venezuela devalues currency under plan to fight hyperinflation

Venezuela on Monday devalued its currency by 95 percent under a broader economic plan that President Nicolas Maduro's government says will help combat hyperinflation. The government is rolling out a new currency, the "sovereign" bolivar, to replace the old "strong" bolivar. The plan, announced Friday, is to peg the new currency to the government's proposed cryptocurrency, the petro. Economists said the move was likely to make inflation, which topped 60,000 percent over the weekend, even worse in the once booming, oil-dependent nation, where failed socialist policies have created Soviet-style shortages and driven throngs of desperate citizens to flee for the borders.

NPR