Federal Reserve Crushes Dreams of a Lower Interest Rate—Blaming Trump

The Federal Reserve on Wednesday announced it will not lower interest rates, refusing once again to obey President Trump’s persistent demands to do so.

In explaining the decision, Fed Chair Jerome Powell pointed to Trump’s tariffs and their impact on the economy.

“Increased tariffs are pushing up prices in some categories of goods,” he said. “Near-term measures of inflation expectations have moved up on balance over the course of this year on news about tariffs.”

The decision is sure to upset the president, who has long called on the Fed to lower interest rates.

“We have a man who just refuses to lower the Fed rate,” Trump said last month, in one of his many attacks on Powell, a constant nemesis of his. “Maybe I should go to the Fed. Am I allowed to appoint myself? I’d do a much better job than these people.”

Trump has spent five straight meetings demanding interest rates be lowered, which suggests some insecurity about the future state of the economy on his part, especially as economists wait for the full scope of his trade war to reveal itself.

Two Trump-appointed Fed governors, Michelle Bowman and Christopher Waller, dissented from Powell’s decision on Wednesday, likely attempting to remain in the president’s good graces in the chance that he fires Powell, something he has alluded to countless times now.

The Fed lending rate will stay within the 4.25 percent to 4.5 percent range.

This story has been updated.

The Trump administration is working toward privatizing Social Security.

Speaking with Breitbart at the far-right media company’s policy event Wednesday, Treasury Secretary Scott Bessent referred to the “big, beautiful bill’s” “Trump accounts” as a “backdoor” for privatizing the public program.

As a stipulation of Trump’s tax bill, the U.S. government would deposit $1,000 in so-called “Trump accounts” for Americans born between 2025 and 2028. The investment, according to Bessent, would dually serve as a way to prevent young people from getting “disillusioned with the system” and voting for the likes of New York City Democratic mayoral candidate Zohran Mamdani, and a way to slyly privatize Social Security.

“So when you do this, you make everyone a shareholder. You make everyone a stakeholder. People who are part of the system do not want to bring down the system,” Bessent said.

Bessent then shared an anecdote about being asked to help manage a construction worker’s hypothetical lottery winnings, to which he claimed that the “best thing you can do is save that $20.”

“Now, with these accounts, they can be part of the system. What if they had put that money in the S&P? Or in Bitcoin? Or in anything? So, we’re making people part of the system, we’re increasing financial literacy,” Bessent said. “I think that at Treasury, we are going to push, with these accounts, that if you have the account we want you to learn about it and understand it.

“In a way, it is a backdoor for privatizing Social Security,” he continued. “Social Security is a defined benefit plan paid out to the extent that if, all of a sudden, these accounts grow and you have in the hundreds of thousands of dollars for your retirement, then that’s a game changer, too.”

Congressional Republicans pushed through Trump’s tax plan earlier this month without any Democratic support. The law is not expected to save the government any money, as Trump had initially promised. Instead, Trump’s key legislative victory—which will slice taxes on the ultrawealthy and corporations while gutting social programs such as Medicaid—is expected to add upward of $6 trillion to the debt, according to a projection from the Cato Institute, a libertarian think tank.

Conservative lawmakers are fighting tooth and nail to retain their right to trade stocks while in office.

The caucus turned out in staunch opposition Wednesday to Republican Senator Josh Hawley’s proposed stock trading ban, causing a significant stir in the upper chamber after the White House flagged the bill as a bad idea.

In order to gain Democratic support and advance the motion through the Senate Committee on Homeland Security and Governmental Affairs, Hawley agreed to include text within the bill that would additionally subject Donald Trump and Vice President JD Vance to the parameters of the ban, just as members of Congress would be. But the White House’s Office of Legislative Affairs, and the executive branch’s Senate allies, were not in favor.

Senator Ron Johnson torched the effort as “legislative demagoguery,” claiming Wednesday that banning lawmakers and their spouses from trading stocks would “make it very unattractive for people to run for office.”

“I have no idea what we’re voting for,” said Senator Bernie Moreno. “I have not read the mountains of paper that are sitting in front of me.”

At one point, Senator Rick Scott condemned the effort as “disgusting,” accusing Hawley of denigrating billionaires. But Hawley, seated next to Scott, had a firm response.

“I don’t mind anyone being rich, I mind people getting rich while they’re here and trading stocks,” the Missouri senator said.

Committee Chair Rand Paul similarly opposed the bill, positing that any such ban would have made it impossible for Trump to be president. The Kentucky lawmaker admitted that he had scheduled a vote on the bill in a quiet quid pro quo: “To get two bills that I want passed through without being beleaguered by amendments,” he said in an interview with Axios.

The White House, meanwhile, argued that its opposition to Hawley’s bill had little to do with its contents.

“This was a last-minute deal struck to include the Executive Branch equities without touching base with the White House to discuss potential Article II concerns,” a White House official told Axios. “Any pause comes purely from potential Article II infringement, not the Congressional ban.”

The president, however, attacked Hawley personally hours later, claiming that the senator’s decision to “block” a review of Representative Nancy Pelosi’s stock trading was “sabotage.”

Hawley had introduced the original bill in 2023 after Pelosi’s husband came under increased scrutiny for his extensive trading practices, though the accusations festered without any evidence of insider trading. By the end of the day, the committee had voted 8-7 to advance the bill, with all Republicans except Hawley voting against it.

“The Democrats, because of our tremendous ACHIEVEMENTS and SUCCESS, have been trying to ‘Target’ me for a long period of time, and they’re using Josh Hawley, who I got elected TWICE, as a pawn to help them,” Trump wrote on Truth Social. “I wonder why Hawley would pass a Bill that Nancy Pelosi is in absolute love with—He is playing right into the dirty hands of the Democrats. It’s a great Bill for her, and her ‘husband,’ but so bad for our Country!”

“I don’t think real Republicans want to see their President, who has had unprecedented success, TARGETED, because of the ‘whims’ of a second-tier Senator named Josh Hawley!” Trump added.

This story has been updated.

Since Donald Trump entered the White House, the supposedly hardline fiscal conservatives of the House Freedom Caucus appear to have softened that line to a malleable putty—and everyone on Capitol Hill knows it.

The Bulwark reported Wednesday that as members of the HFC left for summer break, they were “all over the place” following a series of toothless concessions to the president’s sweeping spending agenda. Now, the House Freedom Caucus has even earned a new nickname among reporters and lawmakers: the House Folding Caucus.

Although they had initially criticized the Senate’s version of Trump’s behemoth budget bill at the beginning of July, HFC members ultimately fell in line to support the president’s bill that would explode the national deficit by trillions of dollars. A few weeks later, they momentarily stalled Trump’s GENIUS Act, arguing that the cryptobill went against an executive order banning central bank currency. But once again, they conceded to the president’s demands after the GOP leadership promised to tie the ban into the Pentagon’s policy bill later this year.

HFC Chairman Andy Harris said that the group should start working on a one-year continuing resolution that would allow them to freeze federal funding, but the group’s position remains unclear. Four members are currently staging their exits from Congress, with Representatives Ralph Norman, Byron Donalds, and Andy Biggs all preparing gubernatorial campaigns in their respective states, and Representative Mike Collins launching a Senate bid in his state.

With a president who just does whatever he wants regardless of what Congress thinks, a far-right attack dog is no longer required—and has been left neutered and freezing in the doghouse.

Texas Republicans are moving forward with their gerrymandering plan that will essentially create new pro-Trump districts in a state that already has an overwhelming GOP majority.

The new map, revealed Wednesday, will create five new GOP-skewed districts, which could very well help Republicans grow their majority in the House in 2026. The map puts districts currently held by Democratic Representatives Henry Cuellar and Vicente Gonzalez at risk of becoming more red, while isolating blue districts to create even more Republican-leaning ones.

The map’s new districts will contain three regions that Trump carried by 10 to 15 percentage points last election, shamelessly rigging the game to seize power in a thinly divided Congress. It will also create six districts without incumbents—making 2026 an even more critical race.

House Minority Leader Hakeem Jeffries is reportedly headed to Texas on Wednesday for a sit-down with Democratic leaders, while the map is set for final approval in a committee hearing on Friday.

On Wednesday, Senator Chuck Grassley of Iowa said he was “offended” by Donald Trump’s “personal attacks,” as the president wages war on the Senate’s “blue slip” tradition.

Traditionally, when the president nominates someone for a federal judgeship, the Senate Judiciary Committee chair (currently Grassley) sends so-called blue slips to the nominee’s home-state senators. If both return the slips, the nomination proceeds; if at least one holds off, it’s effectively vetoed.

In giving the minority party significant influence over the confirmation process, the tradition restricts Trump’s ongoing effort to mold the judiciary in his image. The president has thus been applying pressure on Grassley to abandon it.

On Tuesday evening, Trump said, in a Truth Social post, that the tradition is a “probably Unconstitutional” “hoax” and “SCAM” that would force him to appoint Democratic or “weak” Republicans rather than “Highly Qualified” (read: MAGA) judges.

He urged Grassley to find the “Courage” to abandon the tradition “IMMEDIATELY,” so as to “not let the Democrats laugh at him and the Republican Party for being weak and ineffective.” The president also made a point to take full credit for Grassley’s 2022 reelection to the Senate “when he was down, by a lot,” Trump said.

The president also shared a number of other users’ posts opposing blue slips, some of which took pot shots at Grassley. One called Grassley a “sneaky” “RINO,” short for Republican in name only. One accused the senator of “standing in the way” of Trump’s agenda. Another post shared by Trump suggested that certain elected officials, including Grassley, have been in office too long and ought to be “dethrone[d]” via term limits.

On Tuesday night, Grassley indicated that he would not do away with the tradition. The senator then hit back at Trump during his opening remarks at a Wednesday Senate Judiciary hearing.

“Last night, I was surprised to see President Trump on Truth Social go after me and Senate Republicans over what we call the ‘blue slip,’” Grassley said, before giving a brief explanation of the tradition for “people in the Real America” rather than the “island surrounded by reality” that is Washington, D.C.

“I was offended by what the president said, and I’m disappointed that it would result in personal insults,” Grassley continued.

Politico reports that Grassley’s decision to hold firm has the support of party leaders on both sides of the aisle.

Environmental Protection Agency Administrator Lee Zeldin has decided to pretend that the health risks caused by greenhouse gases don’t exist—but the Fox News chyron beneath him told a different story.

“EPA is proposing to rescind the 2009 Obama EPA Endangerment Finding to eliminate all of the greenhouse gas emissions regulations that followed,” Zeldin said during an interview on Fox News Tuesday, “including electric vehicle mandates, which amounts to a trillion dollars’ worth of savings.”

In December 2009, the EPA published an Endangerment Finding that stated that the current and projected concentrations of greenhouse gases in the atmosphere “threaten the public health and welfare of current and future generations.” Greenhouse gases trap outgoing infrared heat within the Earth’s atmosphere, resulting in global warming.

Just a few months ago, Zeldin couldn’t even say whether carbon was a pollutant (spoiler alert, it is). Now he is primed to remove the finding that set the standard for multiple industries to limit their greenhouse gas emissions.

But as independent journalist Aaron Rupar pointed out on X, Zeldin’s announcement was rendered immediately ridiculous by the chyron just beneath him.

As the anti-science flunkie in charge of the EPA happily announced his plan to strip greenhouse gas regulations, an “Extreme Heat” warning appeared in the bottom right corner. The chyron below him displayed the “Hottest Temps Now” from different cities across the country: 102 degrees in Arizona; 100 degrees in Florida; 100 degrees in Georgia; 99 degrees in California.

This week, a record-breaking heat wave struck the eastern United States, with excessive heat advisories being issued everywhere from Florida to New York. Over the last decade, heat-related deaths have doubled in the U.S.

The Obama-era Endangerment Finding that Zeldin would like to repeal directly linked greenhouse gas emissions to widespread changes in extreme temperatures around the world—adding that rising temperatures would likely turn deadly.

“The impact on mortality and morbidity associated with increases in average temperatures, which increase the likelihood of heat waves, also provides support for a public health endangerment finding,” the report stated, noting that “heat is already the leading cause of weather related deaths in the United States.”

The Trump administration just dashed any chance of a new trade deal with India, imposing a 25 percent tariff on the country Wednesday along with a penalty for buying military equipment and energy from Russia.

The world’s most populous nation has held off on offering new concessions to the U.S., announcing on Tuesday that it was prepared to accept tariffs as high as 25 percent on its exports to American consumers.

But with just two days on the clock to finalize the deal, it doesn’t seem that Donald Trump has a firm handle on India’s jaded approach to the negotiations.

“WE HAVE A MASSIVE TRADE DEFICIT WITH INDIA!!!” he exclaimed on Truth Social Wednesday.

The U.S. imports more goods and services from India than it sells. In 2024, the country’s trade deficit with India was $45.7 billion—a 5.4 percent increase over the prior year, according to the Office of the U.S. Trade Representative.

“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump wrote in an earlier post.

“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE—ALL THINGS NOT GOOD!” he continued. “INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 PERCENT, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!”

Historically, it takes U.S. officials roughly 18 months to negotiate a new trade agreement with another country. That boils down to exhaustive reviews of the country’s prior trade, sorting through thousands of line items of products, and analyzing the complex minutiae of local import and export laws.

Despite the fact that India was one of the first countries to open up new trade negotiations with the U.S. in February, even Trump administration officials have acknowledged that the deal with India is still half-baked. U.S. Trade Representative Jamieson Greer told CNBC Monday that India has “strong interest in opening portions of its market” to U.S. products but that the talks require more time. Last week, India’s Trade Minister Piyush Goyal told Reuters that India was making “great progress” with the Trump administration.

But blowing past traditional expectations in favor of baseless projections has not proven to be a strong success strategy for the second Trump administration. Instead, choosing to throw the country into a trading blitz with dozens of its biggest trading partners has effectively forced the U.S. into a regrettable losing position, with American officials constantly having to hedge on what were supposed to be adamant deadlines.

If Trump is to be believed, however, then Friday could be the exception.

“THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE—IT STANDS STRONG, AND WILL NOT BE EXTENDED,” Trump wrote earlier on Wednesday. “A BIG DAY FOR AMERICA!!!”

India isn’t the only country holding out on U.S. trade negotiations. China, Mexico, Canada, South Korea, Taiwan, Brazil, Switzerland, and Thailand have also not finalized their arrangements with the Trump administration, though not all of them face the August 1 cutoff.

Continuing its 4Chanified social media strategy, the White House’s official X account on Tuesday put an appalling twist on the “Jet2 holiday” internet trend.

The trend consists of viral posts in which chaotic video footage is accompanied by an upbeat song and cheerful voiceover, taken from an advertisement for British airline Jet2, which begins: “Nothing beats a Jet2 holiday!”

In the White House’s attempt, the lighthearted audio plays over video clips depicting immigrants being loaded onto a plane for deportation. The immigrants are shown being ushered from vans, walking with shackled hands and feet, holding identification documents, and boarding a plane. Their faces are clearly visible on several occasions, while the faces of all law enforcement agents are blurred out.

It’s the latest example of the White House’s callous digital strategy, which has previously included an ASMR video of shackled immigrants and an AI-generated image of an immigration agent detaining a sobbing woman in the style of Japanese animation studio Studio Ghibli. This social media approach, under Trump staffer Kaelan Dorr, seems guided by a commitment to sharing “banger memes” (in the White House X account’s own eyeroll-inducing words) that are just edgy enough to elicit surprise that they’re actually being posted by the White House.

But such posts, from an increasingly unpopular administration whose immigration agenda faces increasing scrutiny for prioritizing deporting noncriminals, gives one the impression that the Trump White House is guided by sadism rather than a desire to better the country—and cares more about catering to right-wing internet trolls than satisfying the American electorate.

In the replies to the “Jet2” meme, for instance, many right-wingers were relishing the cruelty, while others were put off. “You are not Christians,” wrote one user. Even a self-described supporter of deportation said the meme “is gross” and “feels yuck.”

Others took to counter-trolling, bringing up an inescapable sore subject for the Trump administration: Congressional candidate TJ Adams-Falconer posted a GIF depicting Donald Trump beside notorious pedophile Jeffrey Epstein, with the text, “Fell for it again.” “Nothing beats releasing the files,” wrote another user.

Oklahoma state Superintendent Ryan Walters wants the board members who say they caught him watching porn to “resign in disgrace.”

Last week, two school board members told the press they’d seen Walters displaying a pornographic video on a TV in his office during the closed-door portion of a Board of Education meeting at the time. 

In a video statement shared to X Tuesday night, the Trump fanboy attempting to reshape the Oklahoma school system went on the offensive, claiming the allegations were a “political attack.”

“These are lies by board members, by a corrupt news media, and perpetuated by the teachers union to try and stop the will of Oklahoma voters, and the Oklahoma parents,” Walters said. “What we are going to continue to do is move this education reform for the families of Oklahoma.”

“These board members should resign immediately in disgrace over the lies that they have pushed about me to try to destroy my character.” 

The Oklahoma Office of Management and Enterprise Services (OMES) had opened an investigation into Walters’s actions Friday, and on Monday asked the Oklahoma County Sheriff’s Office (OCSO) to begin a criminal investigation, according to News4. 

When he’s not going after board members or the media or teachers, Walters’s other tactic seems to be straight up lying about what happened. Earlier on Tuesday, Walters claimed that he’d had his name cleared by both OMES and the sheriff’s office—but that wasn’t true at all. 

“That simply isn’t the case,” OSCO spokesperson Aaron Brilbeck told News4. “Our investigation is still ongoing. In fact, I would categorize it as being in its infancy. This is going to be a very thorough investigation. And once the investigation is complete, we’re going to be very transparent with our findings.”

In his video statement Tuesday night, Walters again claimed that he’d already had “two independent groups come in and prove there was no wrongdoing going on,” but he offered no further details.  

Ryan Deatherage and Becky Carson, the two school board members who’d spoken to the press about the incident, released a joint statement Tuesday. “No board member has accused Superintendent Walters of anything, we only brought attention to inappropriate content on a TV—content that would cause a teacher in our state to lose their license. As the investigation continues, we urge Superintendent Walters to cooperate with law enforcement and refrain from smearing the names, characters and reputations of board members,” they said.