Stock Market Tanks After Fed Chair Powell’s Ominous Warning

After Jerome Powell issued a warning about the economic consequences of tariffs Wednesday, the stock market fell, seeming to confirm his words.

The Dow Jones industrial average was down nearly 900 points, the S&P 500 fell over 150 points, and Nasdaq was down over 620 points as of this writing after the Federal Reserve chair’s remarks to the Economic Club of Chicago.

“The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth,” Powell said.

Trump’s tariffs have caused wild stock swings in the past few weeks as he seems to change his mind repeatedly on which countries are getting hit with which rates. The resulting uncertainty threatens to put the U.S. economy on a path of increased unemployment, rising inflation, and weak growth, which Powell warned is an unprecedented situation.

“These are very fundamental policy changes,” Powell said. “There isn’t a modern experience for how to think about this.”

Right now, in addition to a baseline 10 percent tariff on most U.S. imports, Trump has placed 25 percent tariffs on aluminum and steel as well as on Mexican and Canadian goods not covered by existing trade agreements. In addition, there is a 25 percent tariff on automobiles and a massive 145 percent tariff on all Chinese goods.

All of that threatens an economy that experts considered “historically strong” before Trump’s inauguration at the start of this year. Powell’s warnings Wednesday reflect how Trump changed that outlook in just three months, threatening a recession down the line. Sometime before that point, the president will demand interest rate cuts from Powell and the Fed, and how the chair will handle that remains to be seen.

Federal Reserve Chair Jerome Powell warned Wednesday that Donald Trump’s sweeping reciprocal tariff policy would likely raise inflation, despite the president’s many promises to lower prices upon entering office.

“The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth,” Powell said during an event hosted by the Economic Club of Chicago.

Powell’s words stand in marked contrast to Trump’s. During a press conference with Salvadoran President Nayib Bukele Monday, Trump claimed that he had “already solved inflation,” after the inflation rate had reached 2.4 percent in March, a six-month low.

“You know, if you look at the numbers, the numbers are incredible, actually. The stock market’s up,” Trump said. But that was only after he sent the stock market sinking with his announcement of blanket 10 percent tariffs on products from nearly every country in the world.

And that was in addition to the 25 percent tariffs he’d already announced on products from Canada and Mexico, as well as 25 percent tariffs on imported cars and autoparts. Not to mention his mounting trade war with China, which involved a 145 percent tariff on Chinese goods—with a temporary exception for electronics—that saddled the U.S. with a reciprocal 125 percent tariff on American exports to China.

When Trump announced a 90-day pause on his sweeping reciprocal tariffs, the stock market immediately shot back up, making millions for the president’s buddies at the expense of weakening the U.S. dollar and the U.S. Treasury market.

Powell warned that Trump’s economic policies were pushing the U.S. into uncharted territory. “There isn’t a modern experience for how to think about this,” Powell said Wednesday.

He added that the Federal Reserve might find itself “in the challenging scenario in which our dual-mandate goals are in tension,” referring to the central bank’s dual mandate of maximum employment and stable prices.

Powell said that if both prices and unemployment increased to a certain point, then the Fed “would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.”

The Trump administration is creating a legal justification to send immigrants without criminal records to the U.S. Naval Base in Guantánamo Bay, Cuba.

CBS News obtained a government memo showing an agreement between the Department of Homeland Security and the Department of Defense creating broad discretion about who can be sent to the base. The criteria directly contradict President Trump’s comments about the Cuba base earlier this year, in which he said only the “worst” migrants should be sent there.

The memo doesn’t even mention criminality, stating that the departments agreed to use the base to detain immigrants with deportation orders who have “a nexus to a transnational criminal organization (TCO) or criminal drug activity.” Having a nexus, as defined by the memo, constitutes being part of a transnational criminal group or paying one “to be smuggled into the United States.”

Many immigrants crossing the southern U.S. border end up having to pay criminal groups to facilitate their journey, meaning this could be used to detain large numbers of people. And even if there’s no proof that they were involved with any criminal organization, the memo allows authorities to assume that they are if they’re from a country “where the preponderance of aliens from that country enter the United States in that fashion.”

The Trump administration has already flown some Venezuelan immigrants to Guantánamo Bay, but flew them back to the U.S. in February. Since then, it has reportedly held immigrants from different countries at the base before returning them to the U.S. or other countries. According to a DOD spokesperson, there are 42 immigrants still held at the base, including 10 “high-threat” detainees.

The fact that the Trump administration is using the Guantánamo base at all in its mass deportation efforts is egregious, considering that the base previously held detainees from the war on terror as a way to skirt the Geneva Conventions. Its revival suggests that administration officials see a need to dodge basic human rights laws in detaining immigrants.

Coupled with its sending of immigrants to El Salvador, the majority of whom also don’t have criminal records, the Trump administration’s use of Guantánamo Bay to hold immigrants it wants to deport is yet another human rights violation from officials who couldn’t care less.

A judge said Wednesday there is probable cause to hold Donald Trump’s administration in criminal contempt for refusing to turn around the El Salvador–bound planes carrying more than 200 Venezuelan immigrants last month. 

In a 46-page ruling, U.S. District Judge James Boasberg wrote that the government’s actions “demonstrate a willful disregard” of his previous order that barred Trump from deporting the Venezuelan immigrants—the majority of whom have no criminal record—to El Salvador, where they are currently being held in CECOT, a prison notorious for human rights abuses. 

Trump deported the immigrants under the Alien Enemies Act of 1798, an archaic law that has only been invoked three times before, most famously for the internment of Japanese Americans during World War II.

The White House’s blatant disregard of Boasberg’s order is “sufficient to conclude” that there is probable cause for criminal contempt, the judge wrote, adding that none of the government’s explanations have been satisfactory. 

Following Boasberg’s first ruling, Trump asked the Supreme Court to impeach the Obama-appointed judge, which Chief Justice Roberts refused, in a rare but telling public statement.

“For more than two centuries, it has been established that impeachment is not an appropriate response to disagreement concerning a judicial decision. The normal appellate review process exists for that purpose,” Roberts said on March 18.   

The Supreme Court did however overturn Boasberg’s order at Trump’s request on April 7, giving the president the go-ahead to continue deporting innocent immigrants under the wartime powers act. Last week, the U.S. deported 10 more people it claimed were gang members to El Salvador, according to Secretary of State Marco Rubio. The Trump administration contended to Boasberg that the Supreme Court’s ruling should protect it from criminal contempt, but the judge clearly is fed up with the White House’s relentless excuses.

“The Constitution does not tolerate willful disobedience of judicial orders—especially by officials of a coordinate branch who have sworn an oath to uphold it,” Boasberg’s ruling reads.

This story has been updated.

Does MAGA have any idea what due process is? Do they care?

Donald Trump’s acolytes continue to insist against providing due process to undocumented immigrants the government claims are gang members.

In March, more than 200 alleged gang members, whose deportations to prison in El Salvador were expedited under the Alien Enemies Act, were denied the right to challenge their designation and removal under the AEA. In many cases, lawyers for the detainees were not even notified that their clients were being deported.

White House Deputy Chief of Staff Stephen Miller, an anti-immigrant legal activist, has set off on a campaign against “due process” for undocumented immigrants, or whatever he thinks due process is, in support of Trump’s mass deportation plot.

During an appearance on Fox News Tuesday night, while discussing Kilmar Abrego Garcia, a Maryland man who was mistakenly deported to El Salvador, Miller claimed that “under the due process that these Democrats so venerate for illegal invaders, it is legally impermissible for him to have one more minute in this country.”

But that’s not how due process works. It was a judge who originally stated that Abrego Garcia could not be removed to El Salvador, and the government’s mistake caused him to be deported.

Members of the Trump administration have claimed that Abrego Garcia is a “convicted” member of MS-13 who was “engaged in human trafficking,” without providing any evidence. Due process would present an opportunity for the government to present any legal justification for an individual’s removal, but because it apparently has none, the process must be elided.

Jack Posobiec, a MAGA activist, also had a loose understanding of what due process is.

“Did Rachel Morin get due process? Did Laken Riley get due process?” he wrote in a post on X Tuesday, referring to two women who were killed by undocumented immigrants. “No one ever asks that.”

Most people never ask about that because the question doesn’t make any sense.

Due process is a legal protection for all people against the U.S. government set out in the Fifth Amendment, and then applied to states in the Fourteenth Amendment.

“No person … shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law,” the Fifth Amendment stated. Conservative Justice Antonin Scalia wrote in a 1993 Supreme Court ruling that “it is well established that the Fifth Amendment entitles aliens to due process of law in deportation proceedings.”

Posobiec’s baseless comment echoes one from border czar Tom Homan, who said last month, “Due process? What was Laken Riley’s due process? Where were all these young women that were killed and raped by members of TdA, where was their due process?”

Earlier this month, the Supreme Court ruled that while the Trump administration could continue deportations under the AEA, it needed to provide detainees with the opportunity to file habeas corpus challenges, a complex and rarely successful legal procedure. The court also ruled that these needed to be filed to the U.S. Court of Appeals for the Fifth Circuit, a MAGA-aligned court in Texas where the deportation flights are staged.

Elon Musk’s Department of Government Efficiency claims to have found new unemployment benefit fraud, but the information is just recycled findings from the Joe Biden era.

Last week, Musk revealed the results of DOGE’s investigation into unemployment benefits, the latest federal safety net program to fall victim to the billionaire’s unbacked claims and flat-out lies. He revealed thousands of seemingly shocking fraudulent claims, like toddlers and thousands of people over 100 years old receiving unemployment checks.

DOGE reportedly found that 28,000 people under the age of 5 collected $254 million in benefits, nearly 10,000 people with listed birthdates more than 15 years from now received $69 million, and 24,500 people over 115 claimed $59 million benefits.

“Your tax dollars were going to pay fraudulent unemployment claims for fake people born in the future!” Musk wrote on X last week, using the information to rally the right against the federal safety net. “There was no sanity check for impossibly young or impossibly old people for unemployment insurance.”

But it turns out federal investigators discovered the same information years ago under Biden, and the claims weren’t fraudulent in the way Musk has made them out to be, according to a new report from The Guardian.

After Trump launched Covid-19 unemployment benefits in 2020 during his first term, the program became a target for identity theft and fraudulent claims. Within weeks, the Department of Labor warned states of an uptick in “imposter claims being filed with stolen or synthetic identities.”

To record the imposter claims but protect those whose identities were being stolen, states recorded “pseudo claims,” in which they’d change a person’s date of birth to prevent their information from leaking. That led to thousands of records of claims from toddlers and centenarians.

“Many of the claims identified … were not payments to individuals over 100 years of age, but rather ‘pseudo records’ of previously identified fraudulent claims,” a 2023 memo from the Labor Department reads.

Biden additionally allocated $2 billion to improve fraud detection in state unemployment programs, which resulted in 2,000 conditions and more than $1 billion in recovered funds. Despite this, MAGA has rallied around DOGE’s supposedly scandalous findings and is using them to justify the GOP’s assault on federal funding.

“Another incredible discovery,” Labor Secretary Loria Cahez-DeRemer wrote on X, following DOGE’s investigation reveal.

It turns out this “incredible discovery” was just another false claim from the billionaire used to justify his egregious attack on low-income people across the country.

Donald Trump is going after New York Attorney General Letitia James.

Trump’s federal housing director, William Pulte, issued a criminal referral for James to the Department of Justice, alleging she committed mortgage fraud. The Federal Housing Finance Agency director claims James “falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms.”

James won a $464 million civil fraud suit against Trump, his companies, and business associates last year over his business practices, a case the president is still appealing. He has carried a vendetta against James ever since, most recently attacking his enemy in a Truth Social post Monday.

“Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY. Everyone is trying to MAKE NEW YORK GREAT AGAIN, and it can never be done with this wacky crook in office,” Trump posted, sharing a New York Post article reporting on the allegations against James.

James’s office responded by calling Trump a bully.

“Attorney General James is focused every single day on protecting New Yorkers, especially as this Administration weaponizes the federal government against the rule of law and the Constitution,” a spokesperson said in an email to Axios Tuesday night. “She will not be intimidated by bullies—no matter who they are.”

Trump has embarked on a campaign of retribution against his enemies, taking multiple punitive measures against the state of Maine for refusing to abide by his executive order against transgender athletes. He has stripped the security clearances of two of his prominent critics, former administration employees Chris Krebs and Miles Taylor. It seems that he is willing to weaponize the state against anyone who crosses him.

Attorney General Pam Bondi announced Tuesday that the Department of Justice was suing the state of Maine for failing to comply with the president’s executive order banning transgender athletes from women’s sports.

The lawsuit follows the Trump administration’s announcement that it would suspend all federal education funding from Maine, over the Maine Principals Association’s decision to allow transgender women to compete with other women. The all-out war started after a fiery exchange at the White House in February, where Maine Governor Janet Mills was singled out by Donald Trump but refused to legitimize gender discrimination, saying she would continue to comply with state and federal law.

“See you in court,” Mills told the president at the time. Mills has stated that the inclusion of transgender athletes in women’s sports is protected under Maine’s Human Rights Act, which protects against discrimination on the basis of gender identity.

During Bondi’s announcement, the attorney general tried to downplay that Trump’s inane executive order supposedly protecting women and children actually applied to only a few people in the state.

“I don’t care if it’s one, I don’t care if it’s two, I don’t care if it’s 100!” Bondi said, referring to how many transgender girls are high school athletes in Maine. It’s two, actually, according to the Maine Principals Association.

Ultimately, the supposedly widespread threat that Trump and Bondi seek to address doesn’t actually exist. NCAA President Charlie Baker told a Senate panel there were fewer than 10 transgender athletes in the entire athletic association. Further, Republicans’ repeated attempts to smear transgender women as threatening lacks a basis in reality, and simply serves as a means to win culture-war points with a transphobic voter base.

But Bondi wasn’t so concerned about the specifics of her argument on executing Trump’s agenda. In an appearance on Fox News Tuesday, Bondi falsely claimed that Riley Gaines, a swimmer for the University of Kentucky and anti-trans activist who appeared onstage with the attorney general for her announcement, had made it to the Olympics.

In fact, Gaines received fifth place in the 200-yard NCAA freestyle championship, and tied with University of Pennsylvania swimmer Lia Thomas, who became the first out transwoman champion in the NCAA women’s division.

Bondi warned that Minnesota and California were the “top two” states that would be targeted for their protections for transgender individuals.

Since Trump’s row with Mills, his administration has unleashed a barrage of actions targeting the state. Earlier this month, lawmakers called for the head of the Social Security Administration to resign after it was revealed that he’d attempted to shut Maine out of the insurance program altogether.

Last month, Trump froze millions of dollars in federal funding from the Department of Agriculture to the University of Maine system, which supports several universities. The Department of Education launched an investigation into the state’s Department of Education for alleged Title IX violations, the Department of Health and Human Services targeted the state’s Education Department, and the USDA launched an investigation into the University of Maine.

Donald Trump was apparently mad at Elon Musk for planning to attend a secret briefing on China at the Pentagon last month.

After news of that briefing was reported in The New York Times, Trump angrily canceled it, saying, “What the f**k is Elon doing there? Make sure he doesn’t go,” an unnamed top official told Axios.

The official said that “POTUS still very much loves Elon, but there are some red lines.”

“Elon has a lot of business in China and he has good relations there, and this briefing just wasn’t the right thing,” said the official.

In March, Trump vehemently denied the Times report, calling the publication “Fake News” and saying the story was “completely untrue” in a ranting Truth Social post. At the same time, Musk was also upset, calling the story “pure propaganda” on his X account, and said, “I look forward to the prosecutions of those at the Pentagon who are leaking maliciously false information to NYT. They will be found.”

On Tuesday, Secretary of Defense Pete Hegseth suspended two DOD officials, Dan Caldwell and Darin Selnick, as part of an investigation into who leaked the news of Musk’s briefing, as well as other leaks regarding Panama Canal military plans, Red Sea operations, and intelligence collection in Ukraine.

But the fact that Trump blew up over Musk’s access suggests that there are limits to the tech oligarch and fascism enthusiast’s influence in the White House. There have been reports that Musk will be bowing out of the Trump administration, but Musk has called them “fake news” and his Department of Government Efficiency continues to gut the federal government. Is this the beginning of Trump souring on his wealthy benefactor?

Far-right Representative Marjorie Taylor Greene stumbled Tuesday night when faced with tough questions about her allegiance to Donald Trump at a chaotic town hall that led to three arrests. 

Several individuals were removed for disrupting Greene’s town hall at a community center in Acworth, Georgia. 

While Greene railed against undocumented immigrants, one protester started shouting about the Ku Klux Klan, which historically targeted Black Georgians in Greene’s district. 

The protester, as she was escorted out by security, shouted, “You butch body bigot! You butch body bigot!” 

“The protest is outside! Bye, have fun out there,” Greene sneered. 

The protester’s chide echoed that of Texas Representative Jasmine Crockett, who went so far as to trademark her burn against Greene, “bleach blonde bad-built butch body.”

Another protester with a “Jail 4 Insider Traders” banner was also removed by security. Greene disclosed Monday that she had bought between $21,000 and $315,000 in stocks last week in 17 companies including Apple, Tesla, Nvidia, and Palantir, buying into the stock market dip just hours before Trump announced he was partially pausing some of his tariffs. The stock market shot back up as a result.

In total, three people were arrested, including two who engaged in a physical altercation and were tasered by Acworth police, according to NBC News. 

At a closed-door meeting last month, the chair of the National Republican Congressional Committee, Representative Richard Hudson, advised his colleagues not to hold town hall meetings at all, after several Republicans came face-to-face with their angry constituents. 

Greene had her own solution: to mock the concerns of constituents. 

She made no attempt to conceal her disdain as she read a question about how she planned to “protect” her constituents in Georgia’s 14th district from the effects of Trump’s tariff polices, the gutting of Social Security and Medicaid, the Department of Government Efficiency’s massive government spending cuts, and a president who ignores the rule of law. 

“He is not well physically or mentally, and he’s making nonsensical orders based on his whim of the day. How are you going to rein him in to protect us?” Greene read.

“Oh, poor Christina. Poor, poor Christina. Well, I’m sure, Christina, you think you’re pretty smart, but the reality is you are being completely brainwashed by whatever source of news you listen to,” she sneered.  

Greene insisted that no one (besides criminals, fraudsters, and undocumented immigrants) had lost their Social Security or benefits and proudly declared that she intended to “stand by” her president. 

In fact, the Trump administration and DOGE are making fast plans to shrink the Social Security Administration, phasing out essential phone services and cutting staff, placing an incredible strain on field offices around the country. Around 2,800 SSA employees have already taken buyouts, according to agency data. And House Republicans all readily approved a budget that would see massive cuts to Medicaid in order to fund an extension on Trump’s 2017 tax plan, lightening the load for the very rich at the expense of the poor. 

Greene continued to openly laugh as she fielded questions submitted by her concerned constituents. 

“Why are you such a coward in the face of an obvious fascist takeover?” Greene read aloud. 

“Ooooh, scary! That’s scary. You know, I’ve yet to see a fascist gathering. That doesn’t exist in the Republican Party. As a matter of fact, President Trump is the most transparent president in history. The man literally talks to the press every single day,” Greene said. 

It’s true that Trump often speaks to the press, but when he does he tends to discuss his fascist plans to exile U.S. citizens to foreign prisons.