Washington Edition
Controversy over some key nominations
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This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, congressional correspondent Steven T. Dennis looks at Trump’s confrontational approach to filling out his administration. Sign up here and follow us at @bpolitics. Email our editors here.

Nomination math

Donald Trump once again has demonstrated he won’t shy away from controversy and confrontation — or testing the loyalty of GOP senators — in filling key posts for his administration.

The latest example is his addition over the weekend of uber loyalist Kash Patel to replace Christopher Wray as FBI director to the list of would-be nominees sure to be contentious as they move through the Senate confirmation process.

What’s not clear yet is whether there will be four Republican senators prepared to vote no with Democrats and sink his bid, or that of Fox News host Pete Hegseth, Trump’s likewise embattled pick for Defense secretary.

Patel Photographer: Yuki Iwamura/Bloomberg

Patel will face scrutiny over his plans for the FBI, including the extent he intends to go after Trump’s enemies. His fundraising for those convicted in the Jan. 6, 2021, attack on the Capitol also could be an issue with the Republican senators who backed prosecuting those who ransacked offices or attacked police officers.

Hegseth was already getting a wary eye from some Republicans over a 2017 sexual assault allegation. He was never charged and denied wrongdoing, but paid the woman to keep it quiet. Adding to that were new allegations published today in the New Yorker that he was forced out of two veterans’ organizations after allegations of financial mismanagement, sexual impropriety and personal misconduct. 

Other Trump picks also could face tough sledding, including Tulsi Gabbard as director of national intelligence and Robert F. Kennedy Jr. as health secretary.

Trump’s grip on Republicans has only grown stronger since the election. But, as shown with the sinking of former Representative Matt Gaetz as attorney general, it’s not total.

Three Republicans who will be in office next year voted to convict Trump at his second impeachment trial — Lisa Murkowski, Susan Collins and Bill Cassidy. And a wild card is outgoing GOP leader Mitch McConnell, an institutionalist who has made his disdain for Trump very clear.

Patel will also have to convince establishment-minded Republicans like Thom Tillis, John Cornyn and Mike Rounds that he’s worthy of the post.

With Hegseth, a key senator to watch is Iowa’s Joni Ernst. She’s a senior member of the Armed Services Committee who served as a company commander in Kuwait and Iraq and has made fighting sexual assault in the military a priority.

Still, history suggests it’s unlikely that multiple nominees will be rejected, even with a president known for breaking precedent.  Steven T. Dennis

Don’t Miss

President Joe Biden’s public justification for pardoning his son threatens to undermine his carefully cultivated image as an honest broker whose principal loyalty was to protecting the sanctity of US institutions.

President Biden and Hunter Biden Photographer: Evan Vucci/AP Photo

Trump’s latest pressure on countries around the world to stay anchored to a US-dollar-based financial system risks backfiring, market watchers say, and could end up undermining the greenback.

New US restrictions on China’s access to vital components for chips and AI escalate a campaign to contain Beijing’s technological ambitions but stop short of proposals to sanction more key Chinese firms.

The US is poised to announce a $725 million arms package for Ukraine drawn from American inventories, including the second shipment of antipersonnel mines that was authorized by Biden.

 A joint venture between Samsung and Stellantis to create battery manufacturing plants in Indiana is being offered $7.54 billion in financing from the Biden administration.

Manufacturing activity shrank in November by less than forecast as a gauge of new orders moved into expansion territory for the first time in eight months and indicated business confidence is gradually improving.

Federal Reserve Bank of Atlanta President Raphael Bostic said he’s undecided on whether an interest-rate cut is needed this month, but still believes officials should continue lowering rates over the coming months.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., host Joe Mathieu interviewed Hagar Chemali, former director for Syria and Lebanon at the National Security Council, about the renewed push by rebels in Syria's civil war.

On the program at 5 p.m., he talks with Jessica Roth, Cardozo School of Law professor and a former federal prosecutor, about Biden’s pardon of his son and with Karen Pierce, British Ambassador to the US on working with a Trump administration.

On the Big Take podcast, Bloomberg Businessweek senior reporter Amanda Mull joins host Sarah Holder to discuss how airlines are rethinking their pricing — and what it means for airline revenue and your flight experience. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

The US artificial intelligence ecosystem is outperforming every other country by “significant margins,” according to a gauge from Stanford University. The 2024 update to the Global Vibrancy Tool, constructed from 42 AI-specific indicators from the Stanford Institute for Human-Centered AI shows that the US lead over second-place China is growing. However, China leads in AI patenting so it may be tough for the US to maintain its lead. The United Kingdom is third. India and the United Arab Emirates follow in fourth and fifth place. In 2023, the US produced the highest quality AI research, built the most notable machine learning models, spent the most in private investment, and had the most AI merger/acquisition activity according to the report. The country also boasted the highest number of AI job postings and newly funded AI startups. — Alex Tanzi

What’s Next

Biden is in Angola through Wednesday.

October job openings are reported at 10 a.m. tomorrow.

Orders for durable goods in October are reported Wednesday.

Elon Musk and Vivek Ramaswamy meet with the House and Senate GOP Thursday.

The unemployment rate and other jobs data for November will be out on Friday.

The deadline for state certification of presidential electors is Dec. 11.

The Federal Reserve’s next meeting is Dec. 17-18.

The government’s current spending authority expires Dec. 20.

The new Congress is sworn in on Jan. 3.

Inauguration day is Jan. 20.

Seen Elsewhere

  • The US Navy is scrambling to build a system to reload cruise missiles on ships at sea, a process that would be crucial in any war in the Pacific, according to the Wall Street Journal.
  • The number of migrants crossing the US borders with Mexico and Canada dropped last month to 47,000, the lowest monthly total since July 2020 amid the pandemic, Reuters reports.
  • Top Justice Department officials are encouraging career staffers to remain in their jobs through the next administration, stressing the importance of institutional knowledge, the Washington Post reports.

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