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      Why the Fed’s Job May Get a Lot More Difficult

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      President Trump’s plans risk stoking inflation and denting growth, an undesirable combination that economists warn could lead to much tougher trade-offs for the central bank.When inflation was too high and the economy was resilient in the aftermath of the pandemic, the Federal Reserve’s decision to sharply raise interest rates beginning in 2022 seemed like a no-brainer. The same was true just over two years later when inflation had fallen sharply from its recent peak and the labor market had started to cool off. That paved the way for the central bank to lower borrowing costs by a percentage point in 2024.What made those decisions relatively straightforward was the fact that the Fed’s goals of achieving low and stable inflation and a healthy labor market were not in conflict with each other. Officials did not have to choose between safeguarding the economy by lowering rates and staving off price increases by either keeping rates high or raising them further.Economists worry that could soon change. President Trump’s economic agenda of tariffs, spending cuts and mass deportations risks stoking inflation while simultaneously denting growth, an undesirable combination that could lead to much tougher trade-offs for the Fed.“We’re getting to a harder decision point for the Fed,” said Nela Richardson, chief economist at ADP, the payroll processing company.Jerome H. Powell, the Fed chair, indicated little concern about this dilemma on Wednesday after the Fed’s decision to keep interest rates unchanged for a second-straight meeting in light of a highly “uncertain” economic outlook.Mr. Powell did warn that “further progress may be delayed” on getting inflation back to the central bank’s 2 percent target because of tariffs. A combination of rising inflation and weaker growth would be “a very challenging situation for any central bank,” he conceded, but it was not one the Fed currently found itself in.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Touring Kennedy Center, Trump Mused on His Childhood ‘Aptitude for Music’

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      During his first visit to the Kennedy Center since making himself the chairman of its board, President Trump had a lot to say about Broadway shows, dancers in silk tights, the Potomac River and Elvis Presley.But in a private discussion at the start of a meeting of the center’s board on Monday, Mr. Trump offered something he usually steers away from in bigger settings: a personal anecdote about his childhood.He told the assembled board members that in his youth he had shown special abilities in music after taking aptitude tests ordered by his parents, according to three participants in the meeting.He could pick out notes on the piano, he told the board members, some of whom he’s known for years and others who are relatively new to him. But the president said that his father, Fred Trump, was not pleased by his musical abilities, according to the participants, and that he had never developed his talent. One person in the room said Mr. Trump appeared to be joking about his father. “I have a high aptitude for music,” he said at one point, according to people at the meeting. “Can you believe that?”“That’s why I love music,” he added. Mr. Trump’s remarks have not been previously reported. They were not part of an audio recording of the board meeting obtained by The New York Times earlier this week.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Is Said to Sign Order Aimed at Dismantling Education Department

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      President Trump plans to sign an executive order on Thursday instructing Education Secretary Linda McMahon to begin dismantling the agency, according to two White House officials.The department cannot be closed without the approval of Congress, which created it. But the Trump administration has already taken steps to narrow the agency’s authority and significantly cut its work force while telegraphing plans to try to shutter it.The White House officials, who spoke on condition of anonymity because they were not authorized to speak publicly about the plans, said the order instructed Ms. McMahon to return authority over education to the states.USA Today was first to report Mr. Trump’s intent to sign the order on Thursday. Republican attempts to shutter the agency date back to the 1980s. But the push gained steam in recent years after a parents’ rights movement grew out of a backlash to school policies and shutdowns during the coronavirus pandemic.That movement, which includes key pro-Trump, grass-roots activists, expanded around opposition to progressive agendas that promoted mandating certain education standards and inclusive policies for L.G.B.T.Q. students. Activists contended that these policies undermined parental rights and values.But the hyper-partisanship around education issues has been present for decades, from progressive-leaning teachers’ unions who organized against President George W. Bush’s “No Child Left Behind” policies to conservative Republican presidential candidates in 2016 who ran against the Common Core standards elevated by President Barack Obama’s “Race to the Top” program.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Tariffs Have Sown Uncertainty. That Might Be the Point.

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      Since taking office, President Trump and his advisers have explained the president’s aggressive economic approach to tariffs with a litany of conflicting ideas. Other countries are “ripping off” America and need to be stopped. The United States is fighting a drug war with Canada, Mexico and China. Tariffs will help pay down the nation’s $36 trillion debt load.The messaging hodgepodge comes as the U.S. economy shows signs of strain in response to Mr. Trump’s steep tariffs on Canada, Mexico and China and as he prepares to enact “reciprocal” tariffs on imports from around the world on April 2.The tariffs have sowed uncertainty and dampened business investment and consumer sentiment while sending markets gyrating daily. They are also likely to prevent the Federal Reserve from cutting rates as policymakers wait to see exactly what measures Mr. Trump follows through with and how they affect the economy.But rather than trying to provide more coherence about their economic strategy, Mr. Trump and his advisers seem to be embracing the uncertainty of his approach as a feature, not a bug.“Absolutely, between now and April 2, there’ll be some uncertainty,” Kevin Hassett, the director of the White House’s National Economic Council, said on CNBC this week amid questions about what investors are to make of Mr. Trump’s trade agenda.Mr. Trump, when asked whether he would give the business community more clarity about his overall approach, largely dismissed concerns that corporations needed predictability.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Tariffs Could Deal a Blow to Boeing and the Aerospace Industry

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      Aerospace companies are big exporters but also very reliant on a global supply chain, making them vulnerable.Boeing is the kind of manufacturer — one that exports billions of dollars of goods — that President Trump says he wants to protect and nurture.But his tariffs could have the opposite effect on the company’s suppliers.Mr. Trump has imposed a few tariffs so far, but he says more are coming in just a few weeks. That threat has unnerved the aerospace industry, of which Boeing is one of the largest companies. Duties on aluminum and steel, two of the most important raw materials used in aircraft, are expected to raise manufacturing costs. But the industry is far more concerned by tariffs that take effect on goods from Canada and Mexico next month, which could disrupt the highly integrated North American supply chain.“These tariffs are particularly fraught for an industry like aerospace that has been duty-free for decades,” said Bruce Hirsch, a trade policy expert at Capitol Counsel, a lobbying firm in Washington, which has aerospace clients. “Parts are coming from everywhere.”Aerospace experts say the industry is an example of U.S. manufacturing prowess. It offers well-paying jobs and has produced one of the largest trade surpluses of any industry for years. Aerospace is expected to export about $125 billion this year, according to IBISWorld, second only to oil and gas.But the industry is operating under a cloud of uncertainty. Many companies have been able to avoid costly cross-border tariffs under a short-term reprieve for products covered by a North American trade agreement that Mr. Trump negotiated in his first term. But that deal expires in April.In a letter to administration officials last week, groups representing airlines, plane repair stations, suppliers and manufacturers asked for an exception to the tariffs, arguing that it was needed to keep the industry competitive on the global market.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Judge Says Khalil’s Deportation Case Can Be Heard in New Jersey

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      The Trump administration has sought to deport Mahmoud Khalil, a Columbia University graduate, though he is a legal permanent resident and has not been charged with a crime.A New York federal judge on Wednesday transferred the case of a Columbia University graduate detained by the Trump administration this month to New Jersey, where his lawyers will continue their efforts to seek his release.The order will not have any immediate effect on the detention status of the Columbia graduate, Mahmoud Khalil, a leader of pro-Palestinian protests on the university’s campus, who after his arrest was swiftly transferred from Manhattan to New Jersey and then to Louisiana. The Trump administration has sought to deport him, though he is a legal permanent resident who has not been accused of a crime.The White House has said that Mr. Khalil spread antisemitism and promoted literature associated with Hamas terrorists. Mr. Khalil’s lawyers deny that he has done so and say he is being retaliated against for promoting Palestinian rights and criticizing Israel, views that the Trump administration disagrees with.Mr. Khalil’s legal team had been trying to move his case out of Louisiana since he was transferred there. Had his case been heard there, a conservative appeals court in New Orleans could have set a broad precedent for deportations.The New York judge, Jesse Furman, ordered federal authorities not to remove Mr. Khalil from the country. On Wednesday, in moving the case to New Jersey, he left that order in place.Mr. Khalil himself is expected to remain in Louisiana until a new judge weighs in.Judge Furman noted that Mr. Khalil’s lawyers had accused the government of punishing him for participation in the pro-Palestinian demonstrations, and that his First and Fifth Amendment rights had been violated.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Food Safety Jeopardized by Onslaught of Funding and Staff Cuts

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      The Trump administration halted some food testing and shut down a committee studying bacteria in infant formula. Earlier funding cutbacks under the Biden administration now threaten state labs and inspectors.In the last few years, foodborne pathogens have had devastating consequences that alarmed the public. Bacteria in infant formula sickened babies. Deli meat ridden with listeria killed 10 people and led to 60 hospitalizations in 19 states. Lead-laden applesauce pouches poisoned young children.In each outbreak, state and federal officials connected the dots from each sick person to a tainted product and ensured the recalled food was pulled off the shelves.Some of those employees and their specific roles in ending outbreaks are now threatened by Trump administration measures to increase government efficiency, which come on top of cuts already being made by the Food and Drug Administration’s chronically underfunded food division.Like the food safety system itself, the cutbacks and new administrative hurdles are spread across an array of federal and state agencies.At the Food and Drug Administration, freezes on government credit card spending ordered by the Trump administration have impeded staff members from buying food to perform routine tests for deadly bacteria. In states, a $34 million cut by the F.D.A. could reduce the number of employees who ensure that tainted products — like tin pouches of lead-laden applesauce sold in 2023 — are tested in labs and taken off store shelves. F.D.A. staff members are also bracing for further Trump administration personnel reductions.And at the Agriculture Department, a committee studying deadly bacteria was recently disbanded, even as it was developing advice on how to better target pathogens that can shut down the kidneys. Committee members were also devising an education plan for new parents on bacteria that can live in powdered infant formula. “Further work on your report and recommendations will be prohibited,” read a Trump administration email to the committee members.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Pam Bondi Calls Tesla Vandalism ‘Domestic Terrorism,’ Promising Consequences

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      Attorney General Pam Bondi on Tuesday labeled a recent spate of attacks on Tesla dealerships across the country as acts of “domestic terrorism” directed at Elon Musk, as Trump allies have pressured the Justice Department to take aggressive action.In recent weeks, vandals in apparent protest of Mr. Musk’s polarizing efforts to drastically shrink the federal government and fire government workers have defaced or destroyed Tesla vehicles and damaged buildings in several cities. No serious injuries have been reported.Five more vehicles at a Tesla facility in Las Vegas were damaged on Tuesday in what the local authorities said was a targeted attack.“The swarm of violent attacks on Tesla property is nothing short of domestic terrorism,” Ms. Bondi wrote in a statement. “We will continue investigations that impose severe consequences on those involved in these attacks, including those operating behind the scenes to coordinate and fund these crimes.”There is no federal domestic terrorism law, so those charged in the attacks would be charged under other federal statutes; Ms. Bondi did not specify what charges could be brought, but she said that if convicted, some of those accused could face sentences of at least five years in prison.Ms. Bondi’s remarks echoed President Trump’s labeling of the vandalism as terrorism. On Tuesday, he baselessly suggested in a Fox interview that the vandalism was paid for “by people very highly political on the left.”Congressional Republicans, including Rep. Marjorie Taylor Greene of Georgia, have pressured Ms. Bondi to call such attacks domestic terrorism — after successfully resisting efforts by Democrats in 2022 to pass legislation to counter the rise in activity by white supremacists and other far-right groups.Ms. Bondi supported Mr. Trump’s mass clemency for hundreds of his supporters who violently ransacked the U.S. Capitol, including some who assaulted police officers. The F.B.I. described those involved in the planning and perpetration of that attack as “domestic violent extremists,” whom they had previously identified in threat assessments.Several Tesla facilities have been targeted in the past several days.On Monday, police arrested a 26-year-old woman with spraypainting anti-Musk messages on the front windows of a Tesla facility in Buffalo Grove, Ill., on Friday. That same day vandals broke windows and defaced a dealership in the San Diego area with swastikas and slogans.The F.B.I. and the Bureau of Alcohol, Tobacco, Firearms and Explosives, working with the local police, are investigating vandalism of Cybertrucks at a Tesla dealership in Kansas City, Mo., the F.B.I.’s Kansas City field office said in a statement posted to Facebook. An unknown attacker fired more than a dozen shots at a Tesla dealership in Tigard, Ore., last week, damaging some of the vehicles and store windows. More