We’re going to quickly pivot from Trump’s press conference to share that Jay Clayton’s nomination hearing has officially been canceled for Wednesday. according to the Senate intelligence committee chair, Tom Cotton.
Trump directed Clayton to not appear at the hearing scheduled for this afternoon, according to Cotton. The Republican senator, a staunch ally of the president, called the order “regrettable” in rare public criticism of Trump.
In a post on X, he wrote:
double quotation mark It’s regrettable that the president has directed Jay Clayton not to appear at his confirmation hearing today. Mr Clayton is a patriot and a highly qualified nominee, as the president has said repeatedly. While today’s hearing is now unfortunately postponed, I look forward to proceeding with his confirmation in the near future.
Donald Trump abruptly derailed the confirmation process for his own nominee as the US’s top intelligence chief, Jay Clayton, early this morning, in a move that will allow the US president’s controversial selection for acting director of national security, Bill Pulte, to assume the role. remain in place for at least several weeks until Clayton is confirmed. Tom Cotton, a Republican senator. chair of the intelligence committee, initially said on X that the hearing would go ahead as planned “unless the president directs [Clayton] not to appear or withdraws his nomination.” Trump later directed Clayton not to appear and the hearing was cancelled, which Cotton called “regrettable”. My colleague Cate Brown has the story.
Trump also responded to criticism of his ceasefire deal with Iran, warning at the G7 summit that he was prepared to go back to dropping bombs. insisting the deal did not require the US to pay even 10 cents to Iran. Here’s Patrick Wintour’s report.
Senior US officials dictated the memorandum of understanding with Iran to journalists after days of secrecy. According to the officials, the draft agreement includes a new “minimum” standard for down-blending of highly enriched Iranian uranium. has provisions to ensure the “territorial integrity” of Lebanon after Israel’s continued attacks against Hezbollah in Lebanese territory. In return, the US will move to waive,. not eliminate, some wide-ranging sanctions against Iran once the deal is signed. The US draft of the agreement also secures toll-free passage of the strait of Hormuz for only 60 days,. it does not preclude fees in the future, the officials said. The accord, which Trump said today is “not final”, is due to be signed on Friday in Bürgenstock, Switzerland.
The Federal Reserve left interest rates unchanged for the fourth time this year after its first meeting under new chair. Kevin Warsh, a Trump appointee who has taken over the central bank during a tumultuous time for the US economy. Here’s Gaya Gupta’s report.
And we have that now. The Federal Reserve has left interest rates unchanged for the fourth time this year after its first meeting under new chair. Kevin Warsh, a Donald Trump appointee who has taken over the central bank during a tumultuous time for the US economy.
“ Economic activity is expanding at a solid pace despite elevated uncertainty that owes. in part, to the conflict in the Middle East,” the Fed’s open market committee said in a short statement. “ Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.”
The Fed was widely expected to keep rates at a range of 3.5% to 3.75%. where it has remained since December.
The Fed also removed in its monthly policy statement the easing bias. which previously a signal that indicated that the central bank was looking for further opportunities to make a rate cut as their next rate change. Last month, three Fed governors dissented over the inclusion of this easing bias.
Warsh begins his four-year term as chair at a time when the US economy has been rattled by heightened inflation. geopolitical uncertainty.
A sharp spike in energy prices caused by Trump’s war on Iran has pushed inflation to 4.2% – the highest level the US has seen since 2023. far from the Fed’s 2% target. Though the announcement of a ceasefire deal between the US. Iran sent oil prices tumbling to a three-month low, it will likely take months for energy prices to return to prewar levels.
Meanwhile. hourly earnings dropped to a seasonally adjusted 0.7%, indicating that price increases have stripped out wage gains over the past year.
But it’s unclear whether higher inflation will ever convince a majority of the Fed’s 12 voting members to call for a rate increase. Core inflation, which strips out volatile food and energy prices, has increased only mildly, to 2.9% from the year prior. The country’s labor market has also remained relatively strong, with the unemployment rate holding steady at 4.3%.
Even as Americans continue to balk at higher prices, Trump has continued to advocate for lower rates. said last week that he doesn’t “want to have a big influence” on Warsh.
“ Kevin is fantastic,. I want him to do whatever he wants, ” Trump said in an interview with Meet the Press on NBC News, while also reiterating his desire for a rate cut.
Kevin Warsh is due to hold his first news conference as chair of the Federal Reserve shortly. following his first federal open markets committee meeting in the role, where he is expected to announce where the Fed sees interest rates going.
Before that, we expect the Fed to release a policy statement alongside its rate decision,. economic projections for where policymakers see interest rates going over the coming years.
Senior US officials have dictated the memorandum of understanding with Iran to journalists after days of secrecy.
The officials spoke on condition of anonymity to read the draft. which Iran has not released, ahead of a formal signing ceremony set for Friday in Switzerland.
According to the officials, the draft agreement includes a new “minimum” standard for down-blending of highly enriched Iranian uranium. has provisions to ensure the “territorial integrity” of Lebanon after Israel’s continued attacks against Hezbollah in Lebanese territory.
In return, the US will move to waive,. not eliminate, some wide-ranging sanctions against Iran once the deal is signed.
The US draft of the agreement also secures toll-free passage of the strait of Hormuz for only 60 days,. it does not preclude fees in the future, the officials said.
The accord is due to be signed on Friday in Bürgenstock, Switzerland. The Associated Press reports that it also envisions Iran receiving at least $300bn to rebuild after the war. citing leaked copies of an interim agreement that officials say broadly matches the document.
Keith Sonderling sent letters to 53 states. US territories demanding action to “combat waste, fraud and abuse” within the unemployment insurance program, threatening to withhold administrative funds from states for the first time history.
“We are officially putting governors on notice,” said the acting US secretary of labor. “The American people will no longer tolerate the blatant waste, fraud. abuse of their hard-earned tax dollars – no state should allow it either. If states allow it, they will suffer the consequences. This department is no longer afraid to use every lever available to ensure taxpayer money is protected.”
The agency did not provide data on fraud or alleged fraud in unemployment systems, but highlighted three Democratic-led states – California, New York. Illinois – and made claims about each.
The agency says California owes $20bn to the federal government for a loan during the Covid-19 pandemic. California has struggled paying off the loan. as the state did with a similar federal loan received during the 2008 economic recession, due to the current setup of how employers are taxed to fund unemployment. The unemployment payroll tax system in California has been unchanged since 1984 at a taxable wage ceiling of $7,000 on a workers’ wages. maximum tax rate of 5.4%, leaving the state with insufficient funds to cover its unemployment reserve while legislators on both sides of the political aisle have been working to try to resolve the issue.
The Department of Labor also claimed that New York loses an estimated $2m per day in unemployment insurance fraud. improper payments, but did not differentiate between the two. They also cited that Illinois has improper payments of $320m, at a rate of 14%.
Legislators in the halls of the Georgia state capitol are saying. the Georgia house speaker has announced that the state will not engage in redistricting during the special session that began today.
Legislators were called to the capitol by Governor Brian Kemp to manage a legal problem with QR codes on ballots that lingered over from the regular session,. tacked on redistricting as an additional effort.
That effort appears to have been quashed after Republican lawmakers questioned the political risks ahead of what is expected to be a bruising general election in a swing state.
Going back to Jay Clayton’s postponed nomination. Donald Trump said he would not approve the renewal of Fisa section 702 without passage of his Save America Act, which would require Americans to provide proof of citizenship when registering to vote, a provision critics say would strip millions of Americans of their right to vote, the Associated Press reported.
Trump has previously said the controversial act would deliver his Republicans a “guaranteed” win in November’s midterm elections.
With Trump’s approval rating dropping, polls show that his party will struggle to keep their slim control of the House. Senate when Americans head to the polls this year.
Trump says he is looking forward to a “very special” dinner with Macron as he wants to see the Palace of Versailles. because it “has a lot of gold”.
He then says he hopes Europe will “find its way ”, as it is “having a lot of hard times” with energy. immigration.
And curiously, Trump also thanks Russia’s Vladimir Putin. China’s Xi Jinping for staying neutral on Iran, saying otherwise “they could have made it much more difficult for us”.
Meanwhile at the G7 press conference, Trump has moved on to Ukraine.
He says he had “a productive conversation” with Ukraine’s Zelenskyy and then Russia’s Putin on the phone.
He suggests “something is going to happen”, as he says Russia is losing more soldiers than Ukraine.
He says he had “a very good conversation” with Putin and “a very, very good conversation with Zelenskyy”.
“ I think they both want to do something. They just don’t know how to do it.”
He then swiftly moves on to international aid and the Ebola outbreak in Africa.
The Associated Press has succinctly summarized the stakes of the intelligence director nomination,. why even Republicans are wary of Trump’s interference in today’s hearing:
Hanging in the balance is not only the director of national intelligence,. also section 702 of the Foreign Intelligence Surveillance Act (Fisa), which permits spy agencies to collect without a warrant the communications of targeted foreigners located outside the United States.
National security officials across both major political parties have for years described section 702 as vital for gathering intelligence that can disrupt terror attacks. espionage operations, though some lawmakers and civil liberties advocates have raised concerns over the government’s use of information about Americans that is incidentally collected through the program.
Clayton’s Senate confirmation hearing was expected to be fast-tracked because of the program’s lapse. Democrats had said they would not renew Fisa until Trump withdrew the selection of Bill Pulte.
Trump’s post suggested that debate to revive section 702 could be indefinitely postponed.
The Republican senator Thom Tillis. who is retiring from his North Carolina seat at the end of his term in 2027, told Punchbowl reporter Laura Weiss that Jay Clayton was on track to have a good hearing before Donald Trump interfered with the proceedings.
“Now we’re in a posture where it may be the reason 702 doesn’t get reauthorized,” Tillis said. “That’s a mistake.”
But Tillis also doesn’t think Trump is intentionally creating an issue. “I think somebody’s not dialing the president in to the complexities of what he’s done.”
It’s worth noting a slight sense of Trump’s frustration with Israel’s Benjamin Netanyahu as he says he “gets a little excited sometimes”,. they “have a little dispute over Lebanon”.
“Bibi, you don’t have to knock down a building every time somebody walks into it that’s from Hezbollah,” he says.
Meanwhile, Trump is still on Iran.
He says the deal will be signed shortly; maybe tomorrow, maybe Friday.
We’re going to quickly pivot from Trump’s press conference to share that Jay Clayton’s nomination hearing has officially been canceled for Wednesday. according to the Senate intelligence committee chair, Tom Cotton.
Trump directed Clayton to not appear at the hearing scheduled for this afternoon, according to Cotton. The Republican senator, a staunch ally of the president, called the order “regrettable” in rare public criticism of Trump.
In a post on X, he wrote:
double quotation mark It’s regrettable that the president has directed Jay Clayton not to appear at his confirmation hearing today. Mr Clayton is a patriot and a highly qualified nominee, as the president has said repeatedly. While today’s hearing is now unfortunately postponed, I look forward to proceeding with his confirmation in the near future.
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