On The Money: Trump accuses Silicon Valley of political bias | Senate confirms Fed vice chair | Mexico trade deal could give Dems upper hand

Happy Tuesday and welcome back to On The Money, which has nothing against pumpkin-spiced whatever but everything against seasonal creep. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL–Trump broadens attack on Silicon Valley companies: President Trump escalated a brewing battle with various technology companies on Tuesday, issuing a warning to Facebook and Twitter after blasting Google earlier in the day.

“Google and Twitter and Facebook, they’re really treading on very, very troubled territory,” Trump cautioned during an event at the White House.

{mosads}”If you look at what is going on with Twitter and if you look at what’s going on in Facebook, they better be careful because you can’t do that to people,” he added.

The president did not provide specifics to clarify his remarks.

Trump also claimed that “thousands of complaints” had come to the White House about the technology companies, though it’s unclear where these complaints were filed.

The president’s remarks came hours after he fired off a series of early-morning tweets claiming bias on the part of Google against conservatives.

The Hill’s Ali Breland explains why here.

Why it matters: Trump’s criticism of technology companies comes as other Republicans in Congress, including House Majority Leader Kevin McCarthy (R-Calif.), have accused the technology firms of being biased against conservatives.

House Majority Whip Steve Scalise (R-La.) on Tuesday also chided Twitter over rhetoric aimed at conservatives on the platform, saying the social media company was too slow to ban tweets that violated its rules.

“There’s a massive problem with violent leftist rhetoric online that targets conservatives and their families; I’m all too familiar with its dangerous consequences,” wrote Scalise, who was seriously injured during a shooting at a GOP baseball practice last year.

LEADING THE DAY

Senate confirms Clarida as Fed vice chair: The Senate on Tuesday confirmed economist and investment manager Richard Clarida to be vice chairman of the Federal Reserve, marking President Trump’s second addition to the central bank.

Clarida, a Columbia University professor and director at Pacific Investment Management Company, was confirmed in a 69-26 vote to serve as the Fed’s No. 2 official. He was also confirmed to be a member of the Fed board for the remainder of 14-year term first begun in 2008 by former Fed Governor Dan Tarullo.

Republicans and some moderate Democrats spoke highly of Clarida when he testified before the Senate Banking Committee in May, while liberals expressed concerns about his support for rolling back some post-crisis financial rules.

I’ve got more on his confirmation here.

Mnuchin defends ‘phenomenal’ Powell after Trump attacks: Treasury Secretary Steven Mnuchin defended Federal Reserve Chairman Jerome Powell in a Tuesday interview a week after President Trump blasted the central bank and its chief.

Mnuchin told CNBC on Tuesday that Powell has been a “phenomenal leader” of the Fed that “understands the issue of growth.” He added that he meets with Powell on a weekly basis but wouldn’t comment on the Fed’s plans to raise interest rates out of respect for its independence.

“We talk about a lot of economic issues. It would be inappropriate for me to comment on interest rates in that position,” Mnuchin told CNBC.

“He’s carefully monitoring the growth numbers and the inflation numbers and we’ll see.”

Mnuchin’s defense of Powell is a stark contrast to Trump’s intensifying criticism of the Fed chairman. 

The president told Reuters last week that he was “not thrilled” with Powell’s support for gradual interest rate hikes, and reportedly complained about the Fed chairman at a Republican Party fundraiser in New York three days prior.

FINANCE IN FOCUS: The fate of President Trump’s tentative trade deal with Mexico could rest in the hands of congressional Democrats.
Because of statutory requirements under Trade Promotion Authority (TPA), Congress likely won’t be able to ratify the bilateral agreement until 2019, when Republicans could be in the minority following the November midterm elections.

Even if Republicans hang on to their majority in the Senate, they will still need the help of Democrats to push through the trade agreement. The Hill’s Melanie Zanona and Vicki Needham tell us why.

GOOD TO KNOW

• The Office of the Comptroller of the Currency on Tuesday said it is seeking input on rewriting decades-old rules aimed at encouraging bank lending in low-income communities.
• The White House has decided not to request a second round of budget rescissions, a controversial move allowing lawmakers to claw back spending authority, according to key senators.  
• U.S. consumer confidence rose in August to the highest level in close to two decades, according to data released Tuesday.
• Bloomberg explores why the new NAFTA might not fulfill Trump’s promise to bring manufacturing jobs back to the U.S. and slash the trade deficit with Mexico.
• A Swiss bank has agreed to pay $60.4 million in penalties under a deferred prosecution agreement in a tax-evasion conspiracy case, the Department of Justice (DOJ) announced Tuesday.

ODDS AND ENDS

• Sen. Bernie Sanders (I-Vt.) is inviting Amazon employees to share their experiences working for the online retail giant currently under scrutiny for its wages and worker benefits.
• Rep. Duncan Hunter (R-Calif.) on Tuesday told a reporter to “leave my wife out of it” as he discussed their recent indictment on charges of misusing campaign funds, days after he appeared to blame his wife, Margaret, for the charges.
• The Wall Street Journal unveils how Elon Musk’s bid to take Telsa private unraveled.