Morning Brief: GDP Up, Interest Rates Steady, EPA Rolls Back Regulations & ICE Is Recruiting

The U.S. economy grew by an unexpected 3% last quarter, but the Federal Reserve is holding interest rates steady, drawing criticism from President Trump. The Trump administration moves to repeal a key Obama-era EPA finding, a move that would end the regulation of greenhouse gases under the Clean Air Act. Flush with new funding, ICE launches a major recruitment campaign to hire thousands of new agents to secure the border.

It’s Thursday, July 31, 2025, and this is the news you need to know to start your day.

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GDP Soars, But Fed Holds Rates Steady

Topline: The U.S. economy grew at a much faster-than-expected 3% pace last quarter, but the Federal Reserve on Wednesday opted to hold interest rates steady for the fifth consecutive meeting, defying pressure from President Trump.

On Wednesday, the Commerce Department announced that the U.S. GDP grew by 3% in the second quarter, significantly beating economists’ predictions of 2.3% and marking a major turnaround from the first quarter’s contraction. The strong report, which also showed a nearly 1.5% rise in consumer spending and an increase in consumer confidence, indicates that American businesses and consumers have weathered fears over Trump’s trade reset. National Economic Council Director Kevin Hassett called it “one of the best GDP announcements … you could imagine because there’s blockbuster growth … and there’s also a real, real almost collapse in inflation.”

Despite the positive economic data and low inflation, the Federal Reserve chose to hold its benchmark interest rate in the 4.25% to 4.5% range. Fed Chair Jerome Powell said that while the economy is in a “solid position,” inflation is still “running somewhat above our 2 percent long run objective.” In a rare public dissent, two Fed Governors, Christopher Waller and Michelle Bowman, voted in favor of rate cuts.

President Trump, who has been publicly pleading for a rate cut, blasted Powell’s decision. “2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! ‘Too Late’… MUST NOW LOWER THE RATE,” Trump wrote on Truth Social, adding that high rates are “hurting people from buying houses.” That claim was supported by new data showing that pending home sales fell by nearly 1% in June, hitting their lowest pace in nine months.

Trump EPA Moves to End Climate Regulations

Topline: The Trump administration’s Environmental Protection Agency has proposed repealing the 2009 “endangerment finding,” a move that would dismantle the legal basis for regulating greenhouse gases and effectively end federal climate change policy.

The endangerment finding, established by the Obama administration, determined that greenhouse gases like carbon dioxide endanger human health by contributing to climate change, which allowed them to be regulated under the Clean Air Act. EPA Administrator Lee Zeldin said that repealing the finding “will be the largest deregulatory action in the history of America.” The administration argues that CO2 is a naturally occurring gas with no direct toxicological effects at ambient levels, unlike the pollutants the Clean Air Act was designed to address.

According to Zeldin, recent Supreme Court decisions that overturned the Chevron doctrine and limited the EPA’s authority would likely prevent a future administration from unilaterally reinstating the finding without a new act of Congress.

The move aligns with President Trump’s broader energy agenda. While in Scotland earlier this week, the president outlined a new test for energy sources: “energy should not need subsidy.” He used this to dismiss wind power, stating, “wind doesn’t work,” and vowed that the United States would not build a single additional wind turbine under his administration.

ICE Launches Massive Recruitment Campaign

Topline: Flush with billions in new funding from the “Big Beautiful Bill,” the Department of Homeland Security has launched a major recruitment campaign to hire new ICE agents and attorneys to bolster border enforcement.

This week, DHS unveiled a new website encouraging Americans to “choose your mission” and apply for roles as a deportation officer, criminal investigator, or general attorney. The campaign slams the prior administration’s “disastrous immigration policies” and reaffirms President Trump’s commitment to law enforcement professionals. In a post on X, DHS Assistant Secretary Tricia McLaughlin called on Americans to join ICE to remove terrorists, pedophiles, and gang members from the country.

The recruitment push is funded by the “Big Beautiful Bill,” which allocated over $165 billion to DHS, with $75 billion specifically earmarked for ICE on top of its existing budget. Of that sum, $30 billion will go toward hiring, training, and retaining new agents. The new funding allows ICE to offer lucrative sign-on bonuses of up to $50,000 for certain agents.

The campaign appears to be paying off. Border Czar Tom Homan said on Newsmax that recruiting offices are “swamped” and have “more people than they can handle.” The hiring push comes as DHS Secretary Kristi Noem praised the “brave men and women of DHS” for their successful operations countering human trafficking and smuggling rings.