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The Fed may have reassured Powell it’s safe to leave the board early when a new chair takes over

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After enduring a string of attacks on the Federal Reserve, Jerome Powell may now feel confident that the central bank is in good enough hands to step away completely when a new chair takes over.

Earlier this month, the Fed reappointed its regional bank presidents a bit earlier than usual, surprising Wall Street and easing concerns about its independence in the face of President Donald Trump’s continued demands for steeper rate cuts.

It came after recent suggestions from the Trump administration that new conditions ought to be placed on the Fed presidents, raising fears it was eyeing a purge. That fit a pattern of extreme pressure on policymakers. Trump has relentlessly insulted Powell for not easing more, considered firing him, threatened to sue over cost overruns on the Fed’s headquarters renovation, and is still attempting to oust Governor Lisa Cook.

Given Powell’s commitment to Fed independence, there were doubts that he would leave the board of governors when his replacement as chair comes in, bucking tradition, in order to retain a vote on the rate-setting Federal Open Market Committee and help ensure policy stays apolitical. His term as chair expires on May 15, 2026, but his term as a governor extends to January 2028. 

But with the regional presidents re-upped, that adds some stability to the FOMC, which is comprised of governors and presidents, potentially letting him ride off into the sunset.

“I don’t think Powell wants to stay. I think he’s done with this job, and I don’t blame him,” Christopher Hodge, chief U.S. economist at Natixis CIB Americas, told Fortune

He put a high probability on Powell leaving the board, but a few uncertainties remain. One is Trump’s pick to be the new Fed chair. The current names under consideration—Kevin Hassett, Kevin Warsh, and Chis Waller—would be palatable, but an unserious candidate from left field would give Powell pause, according to Hodge, who previously served as principal economist at the New York Fed.

Another unknown is how the Supreme Court will rule in Trump’s effort to fire Cook over mortgage fraud claims, which she had denied. If the justices determine the White House can easily dismiss governors, then Powell might stay on.

“But ultimately, I think this reappointment of these regional Fed presidents is a barrier that he wanted to get over, and I think that certainly helped clear the way for him stepping down after the meeting in May,” Hodge said.

He added, “as long as Powell is fairly certain that the guardrails are staying in place, and that the Fed is in a long-run position to stay credible, then I think he’s going to step down” from the board of governors. 

Robert Kaplan, vice chairman at Goldman Sachs and former president of the Dallas Fed, said the reappointment of the Fed presidents was big news that didn’t get much attention.

He told CNBC last week there was some concern that a reshuffling on the board of governors would lead to changes in the Fed presidents, who must be approved by the governors.

“I think it’s possible that that won’t happen. And that means the next Fed chair will have to get seven votes through persuasion and debate and getting a consensus. You won’t come in with seven votes wired,” Kaplan added, referring to the votes need for a majority on the 12-member FOMC.

He also urged Powell to not remain on the board when his term as chairman expires. If Powell hangs on, he might be seen as a thorn in the side of the new chair, Kaplan explained.

“In the same way a CEO would leave and leave it to their successor, I think that’s the gracious thing to do,” he said. “I think Jay is a gracious person, and I think it’s the right thing for him to do.”



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Drummer cancels Christmas Eve ‘Jazz Jams’ at Kennedy Center after name change, ending 20-year tradition

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A planned Christmas Eve jazz concert at the Kennedy Center, a holiday tradition dating back more than 20 years, has been canceled. The show’s host, musician Chuck Redd, says that he called off the performance in the wake of the White House announcing last week that President Donald Trump’s name would be added to the facility.

As of last Friday, the building’s facade reads The Donald J. Trump and The John F. Kennedy Memorial Center for the Performing Arts. According to the White House, the president’s handpicked board approved the decision, which scholars have said violates the law. Trump had been suggesting for months he was open to changing the center’s name.

“When I saw the name change on the Kennedy Center website and then hours later on the building, I chose to cancel our concert,” Redd told The Associated Press in an email Wednesday. Redd, a drummer and vibraphone player who has toured with everyone from Dizzy Gillespie to Ray Brown, has been presiding over holiday “Jazz Jams” at the Kennedy Center since 2006, succeeding bassist William “Keter” Betts.

The Kennedy Center did not immediately respond to email seeking comment. The center’s website lists the show as canceled.

President Kennedy was assassinated in 1963, and Congress passed a law the following year naming the center as a living memorial to him. Kennedy niece Kerry Kennedy has vowed to remove Trump’s name from the building once he leaves office and former House historian Ray Smock is among those who say any changes would have to be approved by Congress.

The law explicitly prohibits the board of trustees from making the center into a memorial to anyone else, and from putting another person’s name on the building’s exterior.

Trump, a Republican, has been deeply involved with the center named for an iconic Democrat after mostly ignoring it during his first term. He has forced out its leadership, overhauled the board while arranging for himself to head it, and personally hosted this year’s Kennedy Center honors, breaking a long tradition of presidents mostly serving as spectators. The changes at the Kennedy Center are part of the president’s larger mission to fight “woke” culture at federal cultural institutions.

Numerous artists have called off Kennedy Center performances since Trump returned to office, including Issa Rae and Peter Wolf. Lin-Manuel Miranda canceled a planned production of “Hamilton.”

This story was originally featured on Fortune.com



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California farming mogul in bitter divorce proceedings arrested on suspicion of murdering his wife

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A prominent California farmer was arrested Tuesday on suspicion of murder in the shooting death of his estranged wife in a remote mountain community in Arizona, the Navajo County Sheriff’s Office said.

Michael Abatti, 63, was arrested in El Centro and booked into jail on a first-degree murder charge. He is awaiting extradition to Arizona.

Authorities say they believe he drove to Arizona on Nov. 20 and fatally shot Kerri Ann Abatti, 59, before returning home to California. She was found dead in her family’s tree-shrouded vacation home in Pinetop, Arizona, where she moved after splitting with her husband.

Attorneys for Michael Abatti said in a Wednesday statement that he “has devoted himself to his family, to his work, and to his community” and will be entering a not-guilty plea.

His attorneys added they are “deeply concerned” about his health, as he suffers from numerous medical conditions requiring ongoing treatment and access to specialized care.

Authorities searched his home in far Southern California on Dec. 2 as part of the investigation into his wife’s death.

El Centro is a city of 44,000 people just minutes from the Mexican border in the crop-rich Imperial Valley, which is the biggest user of Colorado River water and known for growing leafy greens, melons and forage crops.

Michael Abatti comes from a long line of farmers in the region bordering Arizona, and his grandfather, an Italian immigrant, was among the region’s early settlers. His father, Ben, helped start the Imperial Valley Vegetable Growers Association, and the Abatti name is known throughout the region and tied to farming enterprises, scholarship funds and leadership in local boards and groups.

Michael Abatti has grown onions, broccoli, cantaloupes and other crops in the Imperial Valley and served on the board of the powerful Imperial Irrigation District from 2006 to 2010.

Michael and Kerri Abatti were married in 1992 and had three children.

Kerri Abatti is a descendant of one of the first Latter-day Saints families to settle Pinetop in the 1880s. The community, located 190 miles (305 kilometers) northeast of Phoenix in the White Mountains, was briefly called Penrodville after Kerri’s forbearers before adopting the Pinetop name.

The couple split in 2023 and Kerri Abatti filed for divorce in proceedings that were pending in California at the time of her death.

The Abattis were sparring over finances with Kerri telling the court the couple had lived an upper-class lifestyle during more than three decades of marriage. They owned a large home in California, a vacation home in Pinetop and ranch land in Wyoming and vacationed in Switzerland, Italy and Hawaii while sending their children to private school, she said.

After the split, Kerri was granted $5,000 a month in temporary spousal support but last year asked for an increase to $30,000, saying she couldn’t maintain her standard of living as she quit her job as a bookkeeper and office manager for the family farm in 1999 to stay home with the couple’s three children. Kerri, who previously held a real estate license in Arizona, also asked for an additional $100,000 in attorney’s fees, court filings show.

“I am barely scraping by each month, am handling all of the manual labor on our large property in Arizona and continuing its upkeep,” she wrote in court filings earlier this year, adding she was living near her elderly parents. Kerri said she also needed to buy a newer car because her 2011 vehicle had more than 280,000 miles (450,600 kilometers) on it and sorely needed repairs.

Michael Abatti said in a legal filing that he couldn’t afford the increase after two bad farming years took a toll on his monthly income. He said European shifts in crop-buying to support war-plagued Ukrainian farmers and rising shipping costs were to blame along with an unusually cold and wet winter.

He said in mid-2024 it cost $1,000 to grow an acre of wheat that he could sell for $700, and that he was receiving about $22,000 a month to run the farm as the business struggled to pay its creditors in full.

“The income available at this time does not warrant any increase in the amount to which the parties stipulated, let alone an increase to $30,000 per month,” Lee Hejmanowski, Michael Abatti’s family law attorney, wrote in court papers.

Days later, Michael Abatti agreed to increase temporary spousal support payments to $6,400 a month, court filings show.

He studied in the agricultural business management program at Colorado State University in Fort Collins before returning to California, according to a 2023 book about water issues written by his college friend, Craig Morgan, titled “The Morality of Deceit.”

In 2009, Michael Abatti almost died from an infection caused by a flesh-eating bacteria and was hospitalized and placed in a medically induced coma for treatment, Morgan wrote in the book.

This story was originally featured on Fortune.com



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Chinese billionaire who has fathered more than 100 children hopes to have dozens of U.S.-born boys to one day take over his business

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Billionaires like Telegram founder Pavel Durov and Tesla CEO Elon Musk have fathered legions of children who are slated to inherit their empires. Now, an ultra-wealthy Chinese businessman is doing the same in the U.S., in hopes of producing around 20 U.S.-born children to inherit his video game fortune. 

Xu Bo is the founder and chairman of Guangzhou Duoyi Network: one of China’s largest mobile gaming companies. Despite the 48-year-old entrepreneur growing his company in Guangzhou, he’s not looking to pass down his $1.1 billion fortune to a child born in his home country. A Wall Street Journal investigation into Xu’s surrogacy history in the U.S. found that the Chinese billionaire was seeking parental rights to at least four unborn children, and had previously fathered and was actively fathering at least eight more surrogacy kids. There could be dozens more.

The billionaire’s video game company had also reportedly stated that Xu has more than 100 children born through surrogates based in the U.S., according to WSJ reporting. He was allegedly seeking “50 high-quality sons,” according to accounts linked to Xu on Chinese microblogging website Weibo, and said that “having more children can solve all problems.” During a 2023 court hearing, Xu also said he hoped to have around 20 U.S.-born children to one day take over his business, according to WSJ. He also fantasized about his American kids marrying Musk’s children in the future. Last month, Xu’s ex-girlfriend also alleged that he had 300 children living around the world—a claim his company denied. 

Xu’s Duoyi Network has since made a statement against the Journal, stating the publication had “deliberately confused the facts and fabricated false information,” and that only 12 of the alleged 100-plus children were born in the U.S.

Another billionaire fathering 100+ heirs: Telegram founder Pavel Durvo 

Xu is among a growing number of ultra-rich men parenting dozens of children to shepherd their companies and expand their legacies. And just like Xu, the video game billionaire, Telegram founder Pavel Durvo has helped conceive over 100 babies across 12 countries. 

Officially, the entrepreneur worth $14.2 billion has six “official” children with three different partners. In addition to this parentage, Durov has also been donating to a sperm clinic for the past 15 years, which told him has led to more than 100 pregnancies. 

“I wrote my will very recently,” Durov told French publication Le Point in an interview this June. “I make no difference between my children: There are those who were conceived naturally and those who come from my sperm donations. They are all my children and will all have the same rights! I don’t want them to tear each other apart after my death.”

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