The Trump administration said Friday that it was encouraged by “reports” that Federal Reserve Chair Jerome Powell was considering resigning. 
Federal Housing Finance Agency Director William Pulte <a href="https://www.fhfa.gov/news/news-release/statement-from-chairman-of-the-board-of-fannie-mae-and-freddie-mac-william-j.-pulte-on-reports-that-jerome-powell-is-considering-resigning" target="_blank" rel="noopener">released</a> a statement saying that it would help the economy for Powell to retire. It is unclear what reports Pulte was referring to, but Trump has repeatedly slammed Powell for his refusal to lower interest rates and called for him to leave his post. 
“I’m encouraged by reports that Jerome Powell is considering resigning. I think this will be the right decision for America, and the economy will boom,” Pulte said. 
Earlier in the day, Trump again laid into Powell as he spoke to reporters before leaving for a trip to visit flood victims in Texas. 
“I think he’s doing a terrible job,” Trump said. “I think we should be 3 points lower, interest rates. He’s costing our country a lot of money.”
“We should be No. 1, and we’re not, and that’s because of Jerome Powell,” the president added. 
During his cabinet meeting on Tuesday, Trump <a href="https://www.foxbusiness.com/politics/trump-demands-terrible-fed-chair-powell-resign-immediately-calls-rate-cuts">said</a> that Powell should “resign immediately” so someone could be appointed who would lower interest rates. 
&#8220;He&#8217;s always late. But he wasn&#8217;t late with Biden before the election, he was cutting them like crazy. It didn&#8217;t help too much, did it? But he was cutting them like crazy before the election with Kamala and Biden. He was trying to get them in, I guess. I don&#8217;t know, he was recommended by somebody who worked for me,&#8221; the president said.
Powell’s term as Fed chair ends in May 2026, but his current term at the Fed goes until January 2028.
In recent days, Powell has also <a href="https://www.dailywire.com/news/palace-of-versailles-fed-chair-lied-about-2-5b-hq-renovation-senators-say?author=Nathan+Gay&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=‘Palace+Of+Versailles’%3A+Fed+Chair+Lied+About+%242.5B+HQ+Renovation%2C+Senators+Say">faced pressure</a> from the Trump administration and the Senate for his handling of renovations to the Fed’s headquarters in Washington, D.C.
“While continuing to run a deficit since FY23 (the first time in the Fed&#8217;s history), the Fed is way over budget on the renovation of its headquarters,” Office of Management and Budget Director Russ Vought <a href="https://x.com/russvought/status/1943362774416883908">said</a> on Thursday. “Now up to $2.5 billion, roughly $700 million over its initial cost. These renovations include terrace rooftop gardens, water features, VIP elevators, and premium marble. The cost per square foot is $1,923&#8211;double the cost for renovating an ordinary historic federal building. The Palace of Versailles would have cost $3 billion in today&#8217;s dollars!&#8221;

Semiannual Monetary Policy Report

Trump Admin Cheers ‘Reports’ That Jerome Powell ‘Considering Resigning’

Donald Trump

Federal Reserve

Interest Rates

Jerome Powell

The DOJ cracks down on “sanctuary city” Los Angeles, Trump continues his feud with Jerome Powell, and Harvard and Democrats try to slow Trump’s budget bill as the clock ticks down on the president&#8217;s self-imposed July 4 deadline.
It’s Tuesday, July 1, and this is the news you need to know to start your day.
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<h2>L.A. On ICE</h2>
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Topline: The Trump administration has sued the city of Los Angeles over its &#8220;sanctuary&#8221; status.
The Justice Department <a href="https://www.justice.gov/opa/pr/justice-department-files-lawsuit-against-sanctuary-city-policies-los-angeles-california">filed a lawsuit</a> on Monday against L.A., arguing that its “sanctuary city” policies violate the U.S. Constitution. Local law enforcement in L.A. is prohibited from directly enforcing federal immigration law or collaborating with ICE on immigration enforcement actions. The DOJ argues that L.A. is discriminating against the federal government, specifically treating immigration officers differently than other law enforcement officials. The suit says L.A.’s sanctuary policies are &#8220;invalid&#8221; and should be blocked.
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In a statement, Attorney General Pam Bondi blamed these sanctuary policies for the recent anti-ICE riots, which she said were the “driving cause of the violence, chaos, and attacks on law enforcement that Americans recently witnessed in Los Angeles.” She added that jurisdictions like L.A. “that flout federal law by prioritizing illegal aliens over American citizens are undermining law enforcement at every level.” The DOJ has also <a href="https://www.justice.gov/opa/pr/justice-department-files-lawsuit-against-sanctuary-city-policies-los-angeles-california">targeted</a> other sanctuary city policies, including in New York.
The Trump administration has consistently made detaining and deporting illegal aliens one of its main policy priorities. Recently, <a href="https://www.washingtonpost.com/immigration/2025/06/30/ice-raids-arrests-workers-companies/">dozens</a> of workplace raids have been carried out across the nation, in states like California, Florida, Texas, Pennsylvania, and many others. It appears that illegals with and without criminal backgrounds – aside from illegally entering the U.S. – have been picked up. Daily immigration arrests have also skyrocketed. In June, ICE has averaged around 1,200 daily arrests, with some days surpassing 2,000 – nearly double the daily average during Trump’s first 100 days, though still short of the administration’s target of 3,000 per day.
There are currently 59,000 immigrant detainees in federal custody – officials say that number is the highest in U.S. history, and these facilities are reportedly well over capacity. Additional funds for immigration enforcement and facilities are included in the Big, Beautiful Bill, currently making its way through Congress.
Meanwhile, as reported by <a href="https://www.dailywire.com/news/feds-raid-california-home-harboring-iranian-nationals-with-terrorism-ties">The Daily Wire</a>, Customs and Border Protection raided a Los Angeles residence that it says was being used to harbor Iranian illegal aliens with ties to terrorists. On Friday, two unidentified individuals were arrested, and that followed a previous raid at the same home that resulted in the arrest of seven Iranian nationals, some of whom are on the FBI terror watch list and associated with an Iranian human smuggling network.
And DHS Secretary Kristi Noem will end Temporary Protected Status, known as <a href="https://www.uscis.gov/newsroom/news-releases/dhs-terminates-haiti-tps-encourages-haitians-to-obtain-lawful-status">TPS</a>, for up to 500,000 Haitians on September 2. DHS said in a press release that this decision “restores integrity in our immigration system and ensures that Temporary Protective Status is actually temporary.” A spokesperson added that the “environmental situation in Haiti has improved enough that it is safe for Haitian citizens to return home.”
<h2>Trump Hammers Harvard, Pummels Powell</h2>
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Topline: Trump continues his assault on Jerome Powell and Harvard, targeting both the Fed chairman and the Ivy League institution.
White House Press Secretary Karoline Leavitt opened Monday’s White House press briefing by showing the White House Press Corps a scathing letter that President Trump sent to Federal Reserve Chair Jerome Powell, which included a handwritten note from the president in which Trump urges Powell to lower interest rates by “a lot.”
<blockquote>“Jerome. you are as usual TOO LATE! You have cost the USA a fortune and continue to do so. You should lower the rate by a lot. Hundreds of billions of dollars are being lost, and there is low inflation.&#8221;</blockquote>
Meanwhile, the Trump administration informed Harvard that it found the university in “violent violation of Title VI of the Civil Rights Act,” which prohibits discrimination on the basis of race, color, and national origin, through its treatment of Jewish and Israeli students. If Harvard fails to take action immediately to “institute adequate changes,” the university could lose all federal funding.
“[A] majority of jewish students experienced negative bias, felt physically unsafe, assaulted and spit on, concealed kippahs for fear of being harassed, and concealed identities from classmates for fear of ostracization,” Leavitt told reporters. “These are all facts that Harvard cannot dispute and that’s why the admin has found them in violation of Title VI and threatened to withhold their funding, because if you break federal law, you are not entitled to federal tax dollars.”
<h2>Dems Drag Big, Beautiful Bill</h2>
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Topline: Democrats are pulling out all the stops to thwart President Trump’s sweeping legislative agenda, which is slowly pushing its way through the two chambers despite some Republicans joining the opposition.
The Senate held a so-called vote-a-rama stretching past 21 hours as of early Tuesday morning, with Democrats forcing votes on amendments to the bill as a way of stalling – but also forcing Republicans to go on the record regarding topics like Medicaid funding and tax cuts for the wealthy, two issues on which Democrats believe Republicans are out of touch.
A few months ago, the idea of passing such a contentious piece of legislation through Congress seemed unlikely, given Republicans’ slim majority in both chambers and the competing interests within the party. Typically, in these situations, the president would push for their agenda to be broken up into smaller pieces and voted on piecemeal, but Trump has been adamant from the start that everything be included in one bill. 
Polling shows that the Big, Beautiful Bill is not all that popular with Americans — Pew has it with a net favorable rating of minus 20, Fox has it at minus 21, and Quinnipiac has it at minus 26. The White House says it is confident that once it passes and folks see the extra money in their paychecks, they’ll quickly change their tune.

MRN 7.1.25 Thumbnail_V1

Morning Brief: Trump Sues Los Angeles, Battles Harvard, And Pushes Big Beautiful Bill

Department of Justice

Economy

Harvard University

Immigration and Customs Enforcement (ICE)

Lawsuit

Los Angeles

Media

Morning Wire

Politics

Federal Reserve Chair Jerome Powell is facing accusations of lying under oath to Congress last week after denying the central bank&#8217;s $2.5 billion headquarters renovation would include lavish amenities like private dining rooms and special elevators, despite planning documents revealing precisely those features.
Government planning documents reviewed by the Senate Banking Committee, first <a href="https://nypost.com/2025/06/30/business/jerome-powell-accused-of-lying-to-congress-over-2-5b-palace-of-versailles-hq-revamp/">revealed</a> by the New York Post, directly contradict Powell&#8217;s claims, specifically mentioning &#8220;private dining rooms&#8221; and a &#8220;Governors&#8217; private elevator,&#8221; as well as &#8220;vegetated roof terraces&#8221; for &#8220;urban wildlife and pollinators.&#8221;
&#8220;There&#8217;s no VIP dining room, there&#8217;s no new marble. There are no special elevators,&#8221; Powell claimed under oath on Wednesday. &#8220;There are no new water features, there&#8217;s no beehives, and there&#8217;s no roof terrace gardens.&#8221;
Powell&#8217;s testimony directly contradicts government planning documents that have not been revised since their approval in 2021.
&#8220;The private dining rooms on Level 4 (of the Fed&#8217;s Eccles building) will be restored,&#8221; reads one excerpt from the filing with the National Capital Planning Commission. &#8220;The Governors&#8217; private elevator will be extended to discharge at the dining suite level.&#8221;
According to the Post, the filing also explicitly mentions &#8220;vegetated roof terraces&#8221; featuring &#8220;urban wildlife and pollinators&#8221; in addition to new marble and water features.
Senator Tim Scott (R-SC), chair of the Senate Banking Committee, branded the renovations &#8220;luxury upgrades that feel more like they belong in the Palace of Versailles.&#8221;
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Powell dismissed the price tag for the revamp, which exceeded the original estimate of $1.9 billion by 30%, saying in Wednesday&#8217;s hearing that &#8220;the cost overruns are what they are.&#8221;
Senator Cynthia Lummis (R-WY), a majority member of the committee, said Powell &#8220;was clearly not prepared for his testimony, and should be embarrassed.&#8221;
&#8220;He made a number of factually inaccurate statements to the Committee regarding the Fed&#8217;s plush private dining room and elevator, skylights, water features, and roof terrace,&#8221; Lummis told the Post. &#8220;This is typical of the mismanagement and &#8216;don&#8217;t bother me&#8217; attitude that Chair Powell has always shown.&#8221;
Andrew T. Levin, a professor of economics at Dartmouth College who served as an economist and advisor to the Fed&#8217;s board for 20 years, called for congressional action, slamming Powell in a statement to the Post.
&#8220;A top Fed official cannot be permitted to make false statements under oath at a congressional hearing. Such statements must be promptly corrected, and in egregious cases, subject to censure by the Senate,&#8221; Levin said.
Former Department of Government Efficiency chief Elon Musk previously called the news about the Fed&#8217;s headquarters revamp &#8220;an eyebrow raiser&#8221; and suggested the department should investigate the spending.
The controversy arises as the Fed grapples with mounting financial losses totaling $233 billion over the past three years, including a record $114.6 billion loss in 2023 — the first time in its history that the central bank has operated in the red.
Powell, whose term as Fed Chair ends in May 2026 unless renominated by President Trump, is facing scathing criticism from the president over the central bank&#8217;s refusal to cut interest rates, adding to the mounting pressure on the embattled Fed Chair.

Federal Reserve Chairman Powell Testifies Before Senate Committee

‘Palace Of Versailles’: Fed Chair Lied About $2.5B HQ Renovation, Senators Say

Congress

Trump Administration

WASHINGTON (Reuters) — Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve consideration of possible rate cuts, Fed Chair Jerome Powell told members of Congress on Tuesday.
Pressed by Republican members of the House Financial Services committee about why the Fed isn&#8217;t cutting rates, as President Donald Trump has demanded, Powell said he and many at the Fed expect inflation to start rising soon, and that the central bank was in no rush to ease borrowing costs in the meantime.
Powell particularly said he would not open the door to a rate cut at the Fed&#8217;s July meeting, as two of his colleagues recently suggested, or at any other session for that matter.
&#8220;I do not want to point to a particular meeting. I don&#8217;t think we need to be in any rush,&#8221; given a still-strong labor market and so much uncertainty about the impact of the still-unresolved tariff debate, Powell said.
Referring to expected tariff-driven price increases, Powell said &#8220;we should start to see this over the summer, in the June number and the July number. &#8230; If we don&#8217;t we are perfectly open to the idea that the pass-through (to consumers) will be less than we think, and if we do that will matter for policy.&#8221;
“I think if it turns out that inflation pressures remain contained we will get to a place where we cut rates sooner than later,&#8221; he said.
With the central bank largely sidelined waiting for the outcome of the Trump administration&#8217;s tariff negotiations, Powell was quizzed repeatedly about why the central bank seemed preoccupied with that issue and isn&#8217;t cutting rates given that inflation so far has been modest.
Powell said that Fed policy isn&#8217;t meant to endorse or criticize the Trump administration&#8217;s approach to trade, only to deal with an inflation impact that the Fed and forecasts more broadly expect to gather momentum over the rest of the year.
&#8220;We aren&#8217;t commenting on tariffs,&#8221; Powell said. &#8220;Our job is keeping inflation under control, and when policies have short- and medium-term, meaningful, implications, then inflation becomes our job.&#8221;
&#8220;All professional forecasters I know of&#8230;expect a meaningful increase in inflation over the course of this year,&#8221; Powell said, elaborating on the Fed&#8217;s reluctance to cut rates while major aspects of Trump&#8217;s trade policy remain unresolved.
<h3>PARING BETS</h3>
In prepared testimony to the House panel, Powell noted that those effects &#8220;could be short-lived, reflecting a one-time shift in the price level. It is also possible that the inflationary effects could instead be more persistent. &#8230; For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.&#8221;
Following the release of Powell&#8217;s testimony, investors pared bets that the central bank might cut its policy interest rate as soon as the central bank&#8217;s July meeting, and increased the perceived odds for a rate reduction in September, with another to follow later in the year.
Powell&#8217;s testimony, as is usually the case with his semiannual congressional appearances, largely tracks the central bank&#8217;s most recent policy statement, approved last week. Fed officials voted unanimously at that meeting to hold the benchmark interest rate steady in the current 4.25% to 4.5% range, and gave no indication rate cuts were imminent.
New economic projections released at the time showed officials at the median expect two quarter-point rate cuts by the end of the year, in line with current market pricing.
In recent days, two Fed governors, both Trump appointees, have said rates could fall as soon as the July meeting, given inflation has not yet risen in response to tariffs, while three reserve bank presidents said they still worry inflation will intensify over the rest of the year.
Trump, who appointed Powell as chair in his first term but is expected to replace him when his term ends next spring, has repeatedly called for steep rate cuts.
&#8220;We should be at least two to three points lower,&#8221; he said in a social media post ahead of the hearing, adding in reference to Powell that he hoped &#8220;Congress really works this very dumb, hardheaded person, over.&#8221;
(Reporting by Howard Schneider; Editing by Andrea Ricci)

FILE PHOTO: Federal Reserve Chair Jerome Powell speaks at a press conference in Washington

Jerome Powell Suggests Delaying Rate Cuts Beyond July Meeting While Fed Studies Tariff Impact

Inflation

Tariffs

Washington D.C.

NEW YORK (Reuters) — Federal Reserve Vice Chair for Supervision Michelle Bowman, recently tapped by President Trump as the central bank’s top bank overseer, said Monday the time to cut interest rates may be fast approaching as she is growing more worried about risks to the job market and is less concerned tariffs will cause an inflation problem.
“It is time to consider adjusting the policy rate,” Bowman said in the text of remarks to be delivered before a gathering held in Prague, Czech Republic. Bowman said inflation appears to be on a sustained path back to 2%, and she said she expects “only minimal impact” on inflation from trade policy.
“Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labor market,” Bowman said.
Last week, the Federal Reserve meeting in a gathering that left its overnight target-rate range fixed between 4.25% and 4.5%. Officials remained in a wait-and-see mode amid the considerable economic uncertainty created by President Donald Trump’s erratically implemented trade policy. Fed officials are worried surging import taxes could depress growth while restarting what had been cooling inflation pressures.
Bowman said in her speech that she supported the Fed’s decision to hold steady. But she appears to see far fewer storm clouds ahead for the economy, and in her speech, she said more clarity is arriving over the outlook. Bowman’s openness to cutting rates is joined by that of Fed Governor Christopher Waller, who <a href="https://www.dailywire.com/news/fed-reserve-gov-says-rate-cuts-should-be-considered-as-trump-ramps-up-pressure-on-powell">said</a> in a television interview Friday he’d also consider a rate cut at the July 29-30 meeting. Waller is widely considered to be in the running to succeed Fed Chair Jerome Powell, whose term ends next year.
Trump has repeatedly pressured the Fed to pursue very large rate cuts amid insults to Powell. Observers believe any Fed chair would need to align with Trump’s desire for much lower short-term borrowing costs.
In her remarks, Bowman noted the job market is still in a good place, but she’s more worried about what lies ahead for the sector, and that’s part of what’s informing her dovish monetary policy views.
“We should also recognize that downside risks to our employment mandate could soon become more salient, given recent softness in spending and signs of fragility in the labor market,” Bowman said.
The Fed official was also quite sanguine on the inflation outlook, saying “it appears that any upward pressure from higher tariffs on goods prices is being offset by other factors and that the underlying trend in core [Personal Consumption Expenditures] inflation is moving much closer to our 2% target than is currently apparent in the data.”
(Reporting by Michael S. Derby, Editing by Louise Heavens)

Federal Reserve Board Governor Michelle Bowman

Federal Reserve Vice Chair Open To Cutting Interest Rates At Next Meeting

U.S.

WASHINGTON (Reuters) — The Federal Reserve should consider cutting interest rates at its next meeting given recent tame inflation data and the fact that any price shock from import tariffs will be short-lived, Federal Reserve Governor Christopher Waller said on Friday.
Waller&#8217;s dovish outlook for monetary policy comes as President Donald Trump is approaching the selection of a replacement for Fed Chair Jerome Powell, whose term ends next year. Trump has been aggressively pushing the Fed to cut rates amid a flurry of insults directed at Powell. Waller is widely considered to be in the mix for a potential Powell successor, and his current monetary policy inclinations favoring lower rates might boost his prospects to become the next Fed chair.
&#8220;Any tariff inflation &#8230; I don&#8217;t think is going to be that big and we should just look through it in terms of setting policy,&#8221; Waller said on CNBC&#8217;s &#8220;Squawk Box.&#8221; &#8220;The data the last few months has been showing that trend inflation is looking pretty good &#8230; We could do this as early as July.&#8221;
Waller&#8217;s remarks on monetary policy were the first public comments by a central banker in the wake of this week&#8217;s Federal Open Market Committee policy meeting, which left the central bank&#8217;s interest rate target range set between 4.25% and 4.5%. In forecasts released at the meeting officials stuck with expectations they&#8217;ll be able to cut rates twice this year.
Trump blasted Powell before the Fed meeting, saying, “We have a stupid person, frankly, at the Fed. I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person.”
As for when those cuts might take place, the Fed offered little guidance. Speaking after the FOMC meeting, Powell cautioned there&#8217;s considerable uncertainty around the outlook amid the big changes in trade policy being pushed through by the Trump administration. He also warned that the tariff policy pursued by the president is almost certain to push up inflation, but it&#8217;s unclear by how much and for how long, and because of that, it&#8217;s hard to say what monetary policy needs to do right now.
&#8220;For the time being we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,&#8221; Powell told reporters.
The challenging nature of the economic outlook got a fresh update on Friday with data from the Philadelphia Fed, which showed factories in the bank&#8217;s district saw contracting activity for a third straight month amid a particularly weak turn for hiring within the sector.
Waller&#8217;s openness to cutting interest rates starting at the July 29-30 FOMC meeting leaves him well apart from most of his colleagues based on their public comments. Waller has argued for some time that textbook understandings of tariff impacts all point to a one-time hit the Fed can look through, and he doubts the president&#8217;s import tax surge will create more persistent price gains.
Waller, in making the case for cuts, noted that the inflation trends have already been cooling and monetary policy is well above the level deemed to be neutral in its impact on the economy. What&#8217;s more, he said he&#8217;s seeing signs of incipient weakness in the labor market, citing challenges by new college graduates to find work. Waller noted that cutting rates sooner rather than later might be good for hiring.
&#8220;I&#8217;m all in favor of saying maybe we should start thinking about cutting the policy rate at the next meeting, because we don&#8217;t want to wait till the job market tanks before we start cutting the policy rate,&#8221; Waller said.
(Reporting by Howard Schneider and Michael S. Derby; Editing by Aidan Lewis and Andrea Ricci)

Donald Trump/Jerome Powell

Fed Reserve Gov Says Rate Cuts Should Be Considered As Trump Ramps Up Pressure On Powell

President Donald Trump says he will make a decision on whether to strike Iran within two weeks. Our expert breaks down all the latest economic data and what it means for you. And, is ChatGPT helping children obtain abortion pills behind their parents&#8217; backs?
It’s Friday, June 20, and this is the news you need to know to start your day.
Morning Wire is available on video! You can watch today’s episode here: 
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If you’d rather listen to your news, today’s edition of the Morning Wire podcast can be heard below:
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<h2>Two Weeks To Stop The Spread (Of Nuclear Weapons)</h2>
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Topline: Israel vows to intensify attacks on Iran as President Trump sets a deadline for U.S. intervention.
We recently learned that President Trump has told top aides that he’s given the green light for airstrikes on Iranian nuclear facilities, but is waiting to see if they’ll blink first and agree to abandon their nuclear program. On Thursday, the White House gave us <a href="https://x.com/RapidResponse47/status/1935753412856967261">a timeline</a> for how long he’s willing to wait.
&#8220;Based on the fact that there&#8217;s a substantial chance of negotiations that may or may not take place with Iran in the near future,” Trump wrote, “I will make my decision whether or not to go within the next two weeks.&#8221;
The Ayatollah has good reason to take that timeline seriously. Remember, in the spring, President Trump said Iran had 60 days to reach a deal — when it refused to compromise, on the 61st day, Israel launched its preemptive strikes, reportedly with Trump’s backing.
&#8220;Iran has all that it needs to achieve a nuclear weapon,” White House Press Secretary Karoline Leavitt told reporters on Thursday. “All they need is a decision from the Supreme Leader to do that. It would take a couple of weeks to complete that weapon, which would of course pose an existential threat not just to Israel, but to the United States and the entire world.”
The Ayatollah has publicly vowed to fight to the death, saying his people would never surrender and that shutting down the nuclear program is a non-starter. But privately, Tehran is seemingly more open to ending this war before it spirals further. First, the president told reporters this week that Iran has offered to come to the White House for direct negotiations. While Trump said they should have been more willing to talk before the war began, he didn’t entirely shut down the idea.
According to Reuters, preliminary talks between the United States and Iran have already begun. Special Envoy Steve Witkoff reportedly held a series of phone calls with Iran’s Foreign Minister over the last few days, hoping to find a diplomatic solution. Iran reportedly told Witkoff that it would be willing to restart negotiations on a nuclear deal, but only if the U.S. could first convince Israel to pause its airstrikes. As one diplomat put it, Tehran “could show flexibility in the nuclear issue&#8221; if Washington helps broker a ceasefire. But Israel seems resolute on pushing forward until Iran’s nuclear program is dismantled.
<h2>Economic Update</h2>
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Topline: Inflation is down, wages are up. The latest data reveals a strong economy – but uncertainty continues.
New data is painting a positive picture of the economy, even as war in the Middle East has caused a spike in oil prices. Federal Reserve Chair Jerome Powell declined to lower interest rates this week despite President Trump’s calls for doing so, partly due to instability abroad and the ongoing tariff negotiations, both of which have the potential to raise prices, although as now year-over-year inflation is relatively low – in May it was only 2.4%, compared to a high of <a href="https://www.factcheck.org/2024/05/factchecking-biden-on-inflation-other-claims/">9.1%</a> in June 2022.
“The Fed is not going to lower rates this year at all,” Kenny Polcari, Chief Market Strategist at Slatestone Wealth, told The Daily Wire. “The hard data, which is measurable data on the economy, continues to be fairly robust and strong. And so therefore, I think current rates are not restrictive. They&#8217;re certainly not causing the economy to go off the edge … every president wants rates to be lower. I get that. But in this case, I think Powell&#8217;s right.”
Crude oil prices have spiked by more than 10% since Israel launched its recent bombing campaign against Iran. Nevertheless, Polcari told The Daily Wire he’s bullish on the American economy and does not believe the price surge will drive inflation in the long term.
“Had this not exploded in the Mideast the way it had, oil would be trading in the mid to low 60s,” Polcari said. “I think it&#8217;s going to go back there once this Middle East situation calms down. But until that happens, the potential is for gas prices to rise because the price of oil has gone up … over the short term, like next month, you could see the rise in energy prices kind of leak into PPI and CPI, causing inflation to kind of either remain steady or even tick a little bit higher. But I don&#8217;t think that&#8217;s a long-term issue.”
<h2>Is AI Assisting Underage Abortions?</h2>
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Topline: Is ChatGPT assisting underage girls with secret abortions?
<a href="https://www.dailywire.com/news/ive-got-your-back-read-chatgpts-chilling-instructions-to-young-girl-seeking-covert-abortion?author=Leif+Le+Mahieu&amp;category=News&amp;elementPosition=1&amp;row=0&amp;rowType=Vertical+List&amp;title=%E2%80%98I%E2%80%99ve+Got+Your+Back%E2%80%99%3A+Read+ChatGPT%E2%80%99s+Chilling+Instructions+To+Young+Girl+Seeking+Covert+Abortion">When prompted by The Daily Wire</a> about what ChatGPT would say to a 14-year-old girl in Tennessee looking to get an abortion without her parents’ knowledge, version GPT-4o of ChatGPT provided a detailed list of abortion providers and gave a step-by-step guide on how to discreetly obtain abortion pills.
ChatGPT encouraged the minor to hide this from her parents and advised her on how to effectively break the law in a state like Tennessee, where medication abortions are illegal and <a href="https://law.justia.com/codes/tennessee/2021/title-37/chapter-10/part-3/section-37-10-303/">parental consent</a> for abortion for a minor is required. The chatbot specifically advised the minor to delete her browser history and not tell anyone about the abortion. It offered to help her connect with an activist group that would ship her abortion pills. The chatbot suggested that the minor use the name and mailing address of a different adult, who is “not a parent.” And it suggested the child open the abortion pills “privately&#8221; when “no one is home” and “carefully” throw out the packaging “somewhere not at home.”
The abortion pill mifepristone is currently enmeshed in legal battles over serious &#8212; and sometimes fatal &#8212; safety concerns. Earlier this month, the Food and Drug Administration <a href="https://www.dailywire.com/news/fda-chief-commits-to-full-review-of-abortion-pill">committed</a> to a full review of the pill’s safety.
The responses were very abortion-focused, but when the chatbot was specifically asked about pro-life pregnancy centers, it denigrated these facilities. Its responses mirrored left-wing talking points about crisis pregnancy centers, which serve millions of women every year. One other note on this report: when you review some of these responses, ChatGPT is not just spitting out clearly biased information; it’s often delivering it in a personal way, trying to elicit trust. The bot also called this hypothetical 14-year-old “brave” for secretly seeking the abortion pills. And at another point, it told her, “You’re doing everything right, and I’ve got your back.”

Donald Trump Speaks At Turning Point Convention In Detroit, Michigan

Morning Brief: Trump’s Iran Ultimatum, Fed Holds Firm On Rates & AI’s Dark Side Exposed

Morning Brief: Trump's Iran Ultimatum, Fed Holds Firm on Rates, and AI’s Dark Side Exposed

Abortion

Artificial Intelligence

Iran

Israel

The Federal Reserve voted to leave the benchmark interest rate between 4.25% and 4.5%, despite the economy&#8217;s &#8220;solid position.&#8221;
&#8220;For the time being, we are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,&#8221; Federal Reserve Chair Jerome Powell <a href="https://www.youtube.com/watch?v=K-WAOqotRl8">said</a> in a press conference following the decision.
The Consumer Price Index rose 2.4% in May, up from 2.3% in April — its lowest point in four years, The Daily Wire previously <a href="https://www.dailywire.com/news/inflation-hits-lowest-point-in-over-4-years-as-april-report-better-than-expected?author=Zach+Jewell&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=Inflation+Hits+Lowest+Point+In+Over+4+Years+As+April+Report+Better+Than+Expected">reported</a>.
&#8220;Inflation remains somewhat elevated,&#8221; the Federal Reserve <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20250618a.htm">said</a> today in a press release. &#8220;Uncertainty about the economic outlook has diminished but remains elevated.&#8221;
Earlier today, President Donald Trump <a href="https://x.com/theMRC/status/1935336312086675879">said</a> the Federal Reserve &#8220;probably won&#8217;t cut.&#8221;
&#8220;We have a stupid person, frankly, at the Fed,&#8221; Trump said. &#8220;I guess he&#8217;s a political guy, I don&#8217;t know. He&#8217;s a political guy who&#8217;s not a smart person.&#8221;
Powell said the Federal Open Market Committee&#8217;s stance is &#8220;not complicated.&#8221;
&#8220;What everyone on the FOMC wants is a good, solid American economy with strong labor market and price stability, that&#8217;s what we want,&#8221; Powell said. &#8220;That&#8217;s what matters to us. That&#8217;s pretty much all that matters to us.&#8221;
Powell said the country could still see negative economic effects from tariffs.
&#8220;Expectations of that [tariff] level, and thus of the related economic effects, reached a peak in April and have since declined,&#8221; Powell said in a press conference following the decision. &#8220;Even so, increases in tariffs this year are likely to push up prices and weigh on economic activity.&#8221;
The CPI has shown little impacts from Trump&#8217;s tariffs over the past three months, The Daily Wire previously reported. The index for food increased slightly compared to April, but the indexes for energy and gas decreased by 1% and 2.6%, respectively.
Powell said the Federal Reserve still expects to see impacts from tariffs this summer.
&#8220;It takes some time for tariffs to work their way through the chain of distribution to the end consumer,&#8221; Powell said. &#8220;We&#8217;re beginning to see some effects, and we do expect to see more of them over the coming months.&#8221;
But he said the ultimate effects of tariffs are &#8220;highly uncertain.&#8221;
Trump also said he would not reappoint Powell.
&#8220;I would have never reappointed him, Biden reappointed him,&#8221; Trump said. &#8220;He&#8217;s done a very poor job. So we have no inflation, we have only success, and I&#8217;d like to see interest rates get down.&#8221;
Despite maintaining interest rates, Powell said the economy shows no sign of weakening.
&#8220;The U.S. economy has defied all kinds of forecasts for it to weaken, really, over the last three years,&#8221; Powell said. &#8220;Eventually it will, but we don&#8217;t see signs of that now.&#8221;

Federal Reserve Chair Powell Holds Press Conference On Interest Rates

Federal Reserve Refuses To Cut Interest Rates

On Thursday morning, the day after the Federal Reserve voted to leave the benchmark interest rate between 4.25% and 4.5%, President Donald Trump targeted Federal Reserve Chairman Jerome Powell, calling him a “fool who doesn’t have a clue” while adding, “I like him very much!”
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and ‘eggs’) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF ‘TOO LATE!’ ENJOY!” Trump wrote on Truth Social.
<blockquote class="twitter-tweet">
“Too Late” Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and “eggs”) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF “TOO LATE!” ENJOY!
From…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) <a href="https://twitter.com/TrumpDailyPosts/status/1920433381654909340?ref_src=twsrc%5Etfw">May 8, 2025</a></blockquote>
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The Fed stated that it doesn’t want to lower interest rates until economic forecasts — which have been in the doldrums since Trump announced his tariff policy — become brighter, adding that the “risks of higher unemployment and higher inflation have risen,” CNBC <a href="https://www.cnbc.com/2025/05/08/trump-calls-fed-chair-jerome-powell-a-fool-after-central-bank-keeps-rates-steady.html" target="_blank" rel="noopener">reported</a>.
“We are always going to do the same thing, which is we are going to use our tools to foster maximum employment and price stability for the benefit of the American people,” Powell — who was initially nominated to his post by Trump in November 2017, then reappointed by President Joe Biden — said. “We are always going to consider only the economic data, the outlook, the balance of risks and that’s it. That’s all we are going to consider.”
In February 2024, Trump said he would not reappoint Powell, whose term ends in May 2026, <a href="https://www.cnn.com/2024/02/02/economy/trump-reappoint-fed-chair-jerome-powell" target="_blank" rel="noopener">telling</a> Fox Business Network’s Maria Bartiromo, “It looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected, I don’t know. I think he’s going to do something to probably help the Democrats, I think, if he lowers interest rates.”
In mid-April, Powell <a href="https://www.nbcchicago.com/news/local/who-appoints-fed-chair-and-can-trump-fire-jerome-powell-what-to-know/3724729/" target="_blank" rel="noopener">told</a> the Economic Club of Chicago, &#8220;For the time being, we are well positioned to wait for greater clarity&#8221; on the impact of Trump’s policy changes. Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114352766082542122">responded</a> the next day, “The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’ Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”
On Sunday, Trump <a href="https://www.nbcnews.com/politics/trump-administration/read-full-transcript-president-donald-trump-interviewed-meet-press-mod-rcna203514" target="_blank" rel="noopener">spoke</a> of Powell on “NBC’s “Meet The Press,&#8221; saying Powell should lower interest rates, adding, “We are at a perfect time. It’s already late. But he should lower interest rates.”
When host Kristen Welker asked if he would rule out removing Powell, Trump replied, “I get to change him very quickly anyway.”
“You don’t have plans to remove him before 2026 when his time’s up?” Welker pressed.
“No, no, no. That was a total — why would I do that? I get to replace the person in another short period of time,” Trump answered.

MixCollage-08-May-2025-11-15-AM-5067

Fed Says It Won’t Lower Interest Rates. Trump Calls Powell A ‘Fool Who Doesn’t Have A Clue.’

Executive

The Federal Reserve on Wednesday voted to hold interest rates steady while Chairman Jerome Powell warned that tariffs and trade wars are creating inflationary pressures.
“If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment,” Powell said at a <a href="https://www.youtube.com/watch?v=JB0ZL_52K74" target="_blank" rel="noopener">news conference</a>.
Powell also said that the economic picture in the United States is unclear. He said he does not know “which way this will shake out” whether to be concerned or not about U.S. economic growth.
“It’s really not at all clear what it is we should do,” said Powell.
The Fed’s vote on Wednesday will keep interest rates at 4.25 percent to 4.5 percent, where they have remained since December after some cuts to interest rates last year.
President Donald Trump has placed tariffs on dozens of countries, focusing particularly on top U.S. trading partners Canada, China, and Mexico. The tariffs and the White House messaging around them has sent the stock market into chaos at points over the past couple of months.
 While Canada and Mexico have negotiated with the Trump administration over immigration, drug trafficking, and other issues, Beijing has ratcheted up tensions with Washington. Talks between China and the United States have not yet started, though Treasury Secretary Scott Bessent said Tuesday that a date had been set for U.S. officials to meet with officials from Beijing.
“I was going to be in Switzerland to negotiate with the Swiss. Turns out, the Chinese team is traveling through Europe and they will be in Switzerland also. So, we will meet on Saturday and Sunday,” the treasury secretary <a href="https://www.dailywire.com/news/breakthrough-trump-officials-set-date-for-direct-trade-talks-with-china" target="_blank" rel="noopener">said</a>.
While tariff talk has spooked markets, Trump has pursued a business-friendly deregulatory agenda and promised an extension of his 2017 tax cuts.
“We are making great progress on ‘The One, Big, Beautiful Bill.’ Our Economy is doing well, but it’s going to BOOM in a way never seen before,” Trump said in a Truth Social <a href="https://truthsocial.com/@realDonaldTrump/posts/114468755257430424" target="_blank" rel="noopener">post</a> on Wednesday. “We are going to do NO TAX ON TIPS, NO TAX ON SENIORS’ SOCIAL SECURITY, NO TAX ON OVERTIME, and much more. It will be the biggest Tax Cut for Middle and Working Class Americans by far, and it is time for Main Street to WIN. MAKE AMERICA GREAT AGAIN!”

Fed Makes Interest Rate Decision With Inflation Concerns As Backdrop

Sen. Elizabeth Warren (D-MA) criticized President Donald Trump on Thursday after he called for the Federal Reserve to cut interest rates – seven months after Warren told the Federal Reserve the same.
Warren appeared on CNBC on Thursday and said that Trump was risking a market “crash” after he posted on Truth Social that the Federal Reserve chairman’s “termination cannot come fast enough!” Trump has expressed frustration with the Fed chairman, Jerome Powell, in recent days over the level of the federal funds rate.
Warren said that Trump’s post was a threat to fire Powell. As an independent agency, the Federal Reserve’s chairman can only be removed by the president “for cause,” according to a 1935 Supreme Court ruling. “For cause” is typically interpreted to exclude disagreements over monetary policy.
“Understand this: if Chairman Powell can be fired by the president of the United States, it will crash the markets in the United States,” Warren said. “The infrastructure that keeps this stock market strong – and therefore a big part of our economy strong, and therefore a big part of the world economy strong – is the idea that the big pieces move independent of the politics, that somebody is making his/their/her best decisions economically and independently.”
“If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn&#8217;t distinguish us then from any other two bit dictatorship around the world,” she added.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
ELIZABETH WARREN: &quot;IF CHAIRMAN POWELL CAN BE FIRED BY THE PRESIDENT OF THE UNITED STATES, IT WILL CRASH THE MARKETS IN THE UNITED STATES.&quot; <a href="https://t.co/tuKbsvijW6">pic.twitter.com/tuKbsvijW6</a>
&mdash; The Wolf Of All Streets (@scottmelker) <a href="https://twitter.com/scottmelker/status/1913000373654077727?ref_src=twsrc%5Etfw">April 17, 2025</a></blockquote>
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Under the Biden administration, Warren, now the top-ranking Democrat on the Senate Banking Committee, repeatedly pushed Powell to cut interest rates despite high levels of inflation. She argued that interest rates needed to come down to make housing more affordable.
In one of those letters sent in September, Warren pushed the Federal Reserve to cut the federal funds rate by “75 basis points.” “If the Fed is too cautious in cutting rates, it would needlessly risk our economy heading towards a recession,” the <a href="https://www.warren.senate.gov/imo/media/doc/warren_hickenlooper_whitehouse_letter_to_fed_re_september_rate_cut.pdf" target="_blank" rel="noopener">letter</a> said.
Trump on Thursday appeared to vent in a Truth Social <a href="https://truthsocial.com/@realDonaldTrump/posts/114352766082542122" target="_blank" rel="noopener">post</a> about the federal funds rate, which is set by the Federal Open Market Committee and influences other interest rates. The president suggested that Powell was acting late to cut rates as the European Central Bank prepares to cut its own interest rates.
“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’ Trump posted. “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS.”
“Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!” Trump wrote.

Elizabeth Warren

Liz Warren Blasts Trump For Asking Fed To Lower Rates. Here’s What She Said When Biden Was President

Joe Biden

President Donald Trump on Thursday called for Federal Reserve Chair Jerome Powell to cut interest rates, saying that his termination couldn&#8217;t come &#8220;fast enough.&#8221;
Trump’s call on Truth Social comes a day after Powell delivered remarks critical of the president at the Economic Club of Chicago. Trump contrasted Powell’s handling of interest rates with the European Central Bank (ECB), which announced interest rate cuts on Thursday. 
“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’ Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,” Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114352766082542122" target="_blank" rel="noopener">posted</a> on his social media network. “Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”
Trump has <a href="https://truthsocial.com/@realDonaldTrump/posts/114280322706682564">repeatedly</a> called for Powell to cut interest rates, saying that the Fed chair was “playing politics” with the economy earlier this month. 
On Wednesday, Powell <a href="https://www.youtube.com/watch?v=1o_9kO0zZQg" target="_blank" rel="noopener">said</a> that he believed Trump’s tariffs would cause inflation. Trump has imposed a baseline 10% tariff on most American trading partners, a 145% tariff on Chinese goods, and select tariffs on other products, such as automobiles. 
“Tariffs are highly likely to generate at least a temporary rise in inflation,&#8221; Powell said. &#8220;The inflationary effects could also be more persistent. Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored.&#8221; 
Powell added that he was waiting “for greater clarity before considering any adjustments to our policy stance.”
“We’re always going to be aiming for maximum employment and price stability,&#8221; he said. “I do think we’ll be moving away from those goals for the balance of this year, or at least not making any progress, and then we’ll resume that progress as we can.”
Trump has said that the tariffs are generating billions in revenue for the federal government and are necessary to get more favorable trade deals for the United States. On Thursday, he <a href="https://truthsocial.com/@realDonaldTrump/posts/114353201227355474" target="_blank" rel="noopener">said</a> that “every nation” wants to meet over the tariffs, including China. The president and his staff met with Japan on Wednesday and are expected to meet with Italy on Thursday to discuss the tariffs. 
Powell&#8217;s post as chair of the Fed runs through May 2026. He previously <a href="https://www.politico.com/live-updates/2024/11/07/congress/feds-powell-says-trump-cant-fire-him-00188311" target="_blank" rel="noopener">said</a> that it would be unlawful for Trump to remove him.

President Trump Announces Nominee For Federal Reserve Chair Of The Board Of Governors

Trump Attacks Fed Chair Jerome Powell: ‘Termination Cannot Come Fast Enough’

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