The fight against DEI intensifies
Even before Donald Trump won in November, the conservative backlash against diversity, equity and inclusion policies was strong.
But new revelations about the incoming Trump administration’s efforts to limit what is commonly known as DEI — and the willingness of corporate titans to shelve such programs — suggest just how tough the backlash will be.
Elon Musk’s cost-cutting initiative is targeting major cuts to federal diversity programs. according to The Washington Post. The nongovernmental panel, the Department of Government Efficiency, is said to be reviewing a report from a right-wing civil rights group that claims it identified more than $120 billion in potential cuts to DEI-related programs.
Among them, according to The Post, are ending programs to benefit black farmers and businesses, as well as a Biden-era executive order reserving 15 percent of federal contracts for minority-owned businesses. (Separately, the FBI confirmed it had shuttered its Office of Diversity and Inclusion, prompting Trump to express outrage that it existed at all.)
The Times sheds more light on Mark Zuckerberg’s move to relax DEI on Meta. In a meeting with Stephen Miller, Trump’s influential aide, Zuckerberg signaled that he would do nothing to thwart the president-elect’s agenda to crack down on DEI’s corporate culture. The tech mogul said new guidelines were coming — and soon after announced a rollback of content moderation rules and an end to Meta’s DEI efforts.
Additionally, Zuckerberg blamed Sheryl Sandberg, his longtime former lieutenant who was known for cultural advocacy programs like Lean In, for encouraging employee self-expression in the workplace, The Times adds. (The revelation sparked outrage online.)
The news underscores how DEI’s defenses are faltering. Many companies were already rethinking their commitment to diversity programs before Trump’s victory, especially after the Supreme Court struck down affirmative action at universities. But several corporate giants, including Amazon and McDonald’s, have ended or scaled back such programs after the election.
For some corporations, diversity work will still continue, using language that is not as politically charged. But as corporate leaders respond to pressure from rising right-wing activists and seek to get on Trump’s good side, the pressure on DEI isn’t going away.
-
In related news: Meta’s chief technology officer said the company had mishandled the way it made changes to its diversity policies and content moderation. And for some workers whose careers haven’t progressed the way they want, diversity programs may have been just an excuse to examine the real reason they were passed over, according to a Wall Street Journal column.
HERE’S WHAT’S GOING ON
Israel’s security cabinet meets to approve ceasefire agreement. The vote is taking place after Israeli and Hamas negotiators resolved remaining disagreements, with ministers expected to clear the deal this weekend. If approved, Israel would withdraw eastward and both sides would release hostages or prisoners, paving the way for an end to the 15-month war.
China’s economy grows, but its population shrinks again. New data showed the Chinese economy grew by 5 percent last year, with increased exports and investment in manufacturing offsetting a decline in construction. But Beijing also revealed that China’s population fell for a third year in a row despite a sudden surge in births, posing a long-term challenge to economic growth.
The Biden administration presents a final flurry of regulatory actions. Regulators, including the Consumer Financial Protection Bureau, the Environmental Protection Agency, the Federal Trade Commission and the Department of Justice reached settlements with companies including American Express, Block, General Motors and Toyota and recommended charges against Snapchat’s parents. They are the latest flurry of oversight actions before the Trump administration, which is expected to take a lighter hand on business regulation, takes office next week.
Markets feel reassured by Bessent
Bitcoin, stock futures and government bonds all rose modestly on Friday, the last trading day of the Biden era.
Their fortunes appear to have been boosted by renewed bullishness about the incoming Trump administration, with investors feeling relieved about what they’ve heard from the president-elect’s cabinet picks about how they intend to operate.
Markets were particularly encouraged by Donald Trump’s choice of Treasury secretary, Scott Bessent. At his confirmation hearing Thursday, Bessent dismissed the inflationary dangers of Trump’s agenda.
Here are the main points:
-
Bessent called for renewing and extending Trump’s tax cuts in 2017 to avoid “economic disaster.” But while he said cutting fiscal spending was also important, he was not committed to repealing the nation’s debt ceiling and said entitlement programs like Medicare would be safe.
-
He said tariffs should be imposed in selected countries to correct trade imbalances or be used as leverage to negotiate favorable trade deals. A new round directed at China seems inevitable. In response, China is leaning on American chipmakers.
-
Bessent said Fed independence is key to US fiscal stability. But he warned that Trump, who has long complained about high interest rates, would still make his views known.
-
He opposed the idea of the Fed creating a digital currency. However, Bloomberg reports that Trump is expected to designate cryptocurrencies as a national priority. Speculation is also growing that Trump will greenlight a federal Bitcoin reserve.
Other confirmation hearings raised questions about how Trump’s second administration was shaping up. Gov. Doug Burgum of North Dakota, the interior secretary pick, criticized renewables as part of a broader national “electricity crisis.” The country needed to refocus on fossil fuels to maintain its global lead in energy-intensive sectors such as artificial intelligence, he added.
But Lee Zeldin, Trump’s pick to lead the Environmental Protection Agency, dodged questions about Trump’s repeated promises to waive or repeal the Inflation Reduction Act, Biden’s signature climate legislation.
And Scott Turner, the former NFL player tapped to lead the Department of Housing and Urban Development, offered few details on how he would address a housing crisis. His lack of clarity came after new Freddie Mac data showed mortgage rates hit an eight-month high.
The surge is driving some would-be buyers out of the market — despite the Fed cutting borrowing costs — in a trend that has alarmed some market watchers.
The TikTok countdown continues
As TikTok nears a possible ban in the United States, elected officials are racing to find ways to delay a crisis that many of them helped fuel by supporting the post-conviction law.
Here’s where things stand.
President Biden is trying to make it Donald Trump’s problem. An administration official told NBC News that the White House was “exploring options” to prevent the app from being blacked out. According to NBC News, Biden also does not plan to fine the companies that host the TikTok app, such as Google and Apple.
That would leave Trump with any penalties against TikTok and its partners. The president-elect has weighed an executive order to allow the app to continue operating until a US buyer is found, though it’s unclear how effective that would be.
Senate Democrats tried to arrange a delay. Lawmakers led by Ed Markey of Massachusetts, Chris Van Hollen of Maryland and Cory Booker of New Jersey have sought to pass a bill that would give TikTok more time to find a buyer. But Sen. Tom Cotton, R-Arkansas, objected, citing concerns about the risks the app poses.
A spokesman for Sen. Chuck Schumer, D-New York, told the Wall Street Journal that the minority leader spoke with Biden on Thursday about creating a delay.
The CEO of TikTok is continuing to sue Trump as well. In addition to sitting on the podium for the inauguration with top cabinet picks and other tech moguls, Shou Chew is throwing a party for pro-Trump creators on Sunday night that will cost TikTok about $50,000 to throw.
Chew is also expected to attend a Trump victory rally Sunday at Capital One Arena, sitting in the suite of Raul Fernandez, a Trump donor and a partner in Monumental Sports and Entertainment, owner of the sports team.
Musk’s gaming range
Elon Musk has famously and unapologetically clashed with regulators and heads of state. But he’s facing naysayers who seem to have struck a nerve: gamers who have questioned his claims to video game mastery.
A summary: Musk has recently boasted on X recently about his gaming prowess, including topping global leaderboards in Diablo IV and Path of Exile 2. Such feats require skill, of course, but also LOT of screen time, prompting skeptics to question how the CEO of six companies and a key adviser to Donald Trump finds his time.
Online sleuths increasingly believe they have found the answer: They have accused Musk of paying others to use his accounts and put in the hours to boost his rankings.
A popular YouTube gaming personality named Asmongold specifically accused Musk of being dishonest about his rapid rise to the top.
Musk has taken those accusations personally. The billionaire has shared videos of himself in action as a way to prove he’s real. Musk also hit back at Asmongold, saying of the YouTuber, “he is NOT good at video games.”
Others came to Asmongold’s defense, using X’s Community Notes feature to flag Musk’s posts.
Given the level of discussion online, this feud seems far from over.
READING SPEED
bids
-
Rio Tinto and Glencore reportedly held talks last year about a deal that would have combined two of the world’s biggest miners, although discussions are not currently active. (Bloomberg).
-
New investment bankers beware: AI tools can write 95 percent of an IPO prospectus in minutes, according to David Solomon, CEO of Goldman Sachs ( FT )
Politics, policy and regulation
-
Meet Ken Howery, the tech investor and friend of Elon Musk, who will lead any deal talks with Denmark over Greenland. (NYT)
-
A group representing Capitol Hill employees who work for progressive lawmakers is pushing for a 32-hour work week. (Politico)
The best of the rest
-
A SpaceX rocket exploded Thursday during a test flight, forcing the FAA to divert several commercial flights to avoid debris. (CNBC)
-
David Lynch, the director behind classic films and TV shows including “Blue Velvet,” “Mulholland Drive” and “Twin Peaks,” has died. He was 78 years old. (NYT)
We would love your feedback! Please send thoughts and suggestions to dealbook@nytimes.com.
