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      Trump can complain all he wants – but he can’t stop his own economic mess | Sidney Blumenthal

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      With his usual threats, Donald Trump is trying to ward off the dire reality that he has created and is bearing down on him. He can clamp migrants in foreign gulags, coerce white-shoe law firms into becoming his pro bono serfs and try to simply erase the National Endowment for the Humanities, but he can’t rescind his harm to the economy. Trump can slash the National Weather Service, but he can’t stop the storm he’s whipped up. He’s shouting into the wind at his twister.No matter how much he might lower his draconian tariffs after his 90-day breathing spell, the velocity of damage is just building. It’s not a mistake that can be rectified. There’s no do-over. It’s not a golf game at one of his clubs where he gets endless mulligans and is declared the champion. Nor does Trump really want to draw back completely from his tariffs as if he never had proudly displayed his “Liberation Day” idiot board.When the Walmart CEO inevitably announced that prices would have to be raised as a result of Trump’s tariffs, Trump warned: “Between Walmart and China they should, as is said ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!”Trump has falsely insisted that tariffs are levied on foreign importers. But Walmart demonstrated the indisputable fact that tariffs are price increases passed on to consumers. They are a tax. Trump is furious at the early indication of the renewed inflation and price rises that are coming. His natural response, of course, is an attempt at intimidation.The tariffs are a shakedown by which Trump could exercise his control over corporations that must scrape and bow before him, asking for targeted relief in exchange for, perhaps, payments to his personal political action committee, or, perhaps, throwing money into the kitty of his various financial endeavors, his crypto firm and meme-coin scheme. According to his wishful thinking, businesses should “eat the tariffs” to cover up his falsehood and maintain his popularity. For his sake, shut up and “eat” it. Trump is at war with the corporations’ bottom line.He can fool all of the people some of the time, and some of the people all of the time, but he can’t fool the bond market any of the time. When Moody’s Ratings downgraded the US credit rating, the Trump White House put out a statement attacking Moody’s “credibility” while blaming “Biden’s mess”. Moody’s reasons were an oblique criticism of Trump’s pending “big, beautiful bill” for massive regressive tax cuts in addition to his tariffs, which have led to the suspension of any further cuts in interest rates from the Federal Reserve.Blaming Biden, in any case, hasn’t been cutting it with public opinion. Only 21% of Americans attributed the state of the economy to Biden’s policies in a poll in early April conducted by CBS News/YouGov. In Trump’s first hundred days alone, he denigrated Biden at least 580 times, according to NBC News. Trump sought to make him the scapegoat for his own policies. But the public is certain that Trump and nobody else owns the economy as he desperately tries to restore it to where Biden bequeathed it to him, with inflation and interest rates falling. And, now, very ill, Biden can no longer serve as a convenient target.Even if, after Trump’s 90-day pause on tariffs, he cuts them in half, the result will be devastating to small businesses, family farms and many large corporations. Nearly 90% of American small businesses rely on imported goods. More than 20% of the US agricultural sector depends upon exporting its products, according to the US Department of Agriculture. US manufacturers rely on imports for more than 20% of machinery, products and components. More than 41m American jobs are linked to imports and exports, one in five, according to the Business Roundtable. That does not include the multiplier effect of millions, if not tens of millions, of additional jobs created as a result.The supply chain has been severely distorted. For 12 hours on 9 May, zero cargo ships – none, not one – departed from China to the ports of Los Angeles and Long Beach, the two major US ports for Asian imported goods. The more than $906bn trucking industry, which had finally regained stability after the Covid disruption, faces another shock. “Trump trade war is wrecking hope for 2025 US trucking rebound,” reads the headline on a Reuters story.The uncertainty factor that Trump has introduced has frozen all planning. The auto companies, among others, have given up issuing any guidance to investors. Their earnings are plunging, their suppliers in chaos. Nobody can predictably produce, order or hire, and so businesses are in a state of suspension. The prospect of a slowdown has already depressed oil prices to the point where it will soon not be profitable to drill at all. In April, Trump called critics of his tariffs “scoundrels and frauds”, but retailers do not know how to price goods, how much to raise them to sustain often razor-thin profit margins. They face a Hobson’s choice of pricing themselves out of their markets or absorbing the costs and going bust.The head of Trump’s council of economic advisers, Kevin Hassett, cheerfully announced on 12 April that he expected the gross domestic product to grow by 2% to 2.5% in the first quarter of this year. On 30 April, the Bureau of Economic Analysis reported that GDP had fallen by 0.3% in the quarter.Even after Trump agreed to drop his 145% tariff on China to 30%, Paul Krugman points out that “we’re still looking at a shock to the economy seven or eight times as big as Smoot-Hawley, the previous poster child for destructive tariff policy”. Krugman states that on the optimistic lower end, “we’d expect Trump’s tariffs after last weekend’s retreat on China to cut overall US trade by roughly 50%. Trade with China, which would have been virtually eliminated with a 145% tariff rate, would fall by ‘only’ around 65% with a 30% tariff.”The result will be devastating, with rising inflation, higher unemployment, shortages, and lower growth and investment. In short, the economy will plunge into stagflation for the first time since the 1970s. Then, the phenomenon was the outcome of the Opec oil shock. This is the Trump shock, not the consequence of an external factor, but entirely self-induced through a delusion. Does he care? “Well,” Trump said, “maybe the children will have two dolls instead of 30 dolls. So maybe the two dolls will cost a couple bucks more than they would normally.”All of what’s coming was foreseeable. This is not a case in which unintended consequences suddenly emerged without advance warning, like in the 1970s. Here the red lights flashed; Trump raced through them.The uncertainty he’s injected is not a byproduct of happenstance. Uncertainty is the aspiring dictator’s pre-eminent prerogative. Trump resents any limitation on his ability to act however he wishes. The ultimate privilege of a dictator is to be at liberty to be impulsive. The more unpredictable he is, the more he is regarded as omnipotent.Trump has no real policies. There is no actual analysis, no expertise, no peer review. He brandishes atavistic symbols as primitive representations of his unrestrained power. Lowering or raising the tariffs are functionally equivalent if they are perceived as enhancing the perception of his potency. The merits are of no interest. Policies, such as they are, are measured by how well they gild his lily. The more unpredictable he is, the more he thinks of himself and thinks others think of him as almighty.For Trump, experience is meaningless. He never learns. Even his existential moments are forgotten, like his near-death from Covid. He deduces no lessons. It doesn’t inform his health policies, for example, which he’s turned over to oddballs and snake-oil salesmen led by the chief crank with roadkill in his freezer and a worm in his brain, Robert F Kennedy Jr.Trump’s learning curve is a hamster’s wheel. He goes ’round and ’round, repeating belligerent ignorance unaltered over decades. He’s the hamster who thinks he’s making progress if he receives attention. His solipsism is epistemological. Jared Kushner grasped its essence when he surfed on Amazon to find the one discredited economist, Peter Navarro, to provide sham formulas to justify Trump’s preconceived tariff obsession.Trump’s psychological equilibrium requires the constant rejection of his responsibility for the abrasive reality he churns up. Confronting reality exacts fortitude, both politically and intellectually. He considers that a mug’s game he must resist. His inner fragility is shielded by projecting images of muscular strength, now AI generated videos and pictures of himself produced by the White House communications team as a Jedi, a guitar hero (after Bruce Springsteen called him “treasonous”) and the Pope (the new Pope Leo XIV does not much care for the social Darwinism of JD Vance).Meanwhile, there must be a conspiracy theory to deliver up a scapegoat. That opens the door of the Oval Office for malicious fabulists to whom Trump is particularly susceptible and finds useful as his instruments to terrorize even his own staff. Enter loony Laura Loomer as his virtual national security personnel director with a portfolio in hand identifying six officials on the national security council to be purged, soon to be followed by the defenestration of the national security adviser Michael Waltz, who, rather than the thoroughly incompetent secretary of defense, Pete Hegseth, served as the scapegoat for the Signal chat group that invited in Jeffrey Goldberg, editor of the Atlantic.A 9/11 truther, Loomer claimed the terrorist attack was “an inside job.” During the 2024 campaign, Trump brought her to the 9/11 memorial service. Loomer said that if Kamala Harris won the White House it “will smell of curry”. Marjorie Taylor Greene, the far-right member of the House from Georgia, assailed Loomer as an “appalling and extremist racist”. “You don’t want to be Loomered,” Trump said. “If you’re Loomered, you’re in deep trouble. That’s the end of your career in a sense. Thanks, Laura.”Trump famously can’t accept the slightest criticism. He is armored against learning in any case. He is incapable of engaging in any self-examination for both emotional and cognitive reasons. It would be too upsetting even to contemplate. His whole being would become paralyzed if he were ever to suffer a bout of introspection. His system couldn’t tolerate it. His brittle peace of mind requires his fabricated self-image to be constantly apple-polished and worshipped.The split between Trump’s anxious need for his cosseted appearance and the terrible reality he’s making is his ultimate credibility gap. He must sustain a completely self-contained inner world or the walls start to close in.Information must therefore be suppressed. When the intelligence community assesses that the Tren de Aragua gang is not being manipulated by the Maduro regime of Venezuela, which is the invented excuse for Trump’s migrant round-up emergency, then fire the intelligence analysts or tell them to redo their report.When the Democrats in the House attempted to bring up a bill to remove Trump’s claim of a national security emergency for his tariffs – another mythical emergency – Republicans moved to block it in the rules committee. No vote, no debate. It’s a disappearing act.If the lying doesn’t work, try intimidation. That is the rhyme or reason behind Trump’s success in imposing his malignancy. But now he’s created a reality he can’t disguise or bully. The planets are hurdling into collision. He’s done it to himself by himself.The passage of his “Big Beautiful Bill”, with its extravagant tax cuts for the wealthy and deep cuts to Medicaid, wounding his white rural base, of which, depending on the county, are 25% to 40% dependent on the federal healthcare program, will spike the inflationary effect of his tariffs as well as the deficit. Republicans no longer uphold the pretense that their tax cut redistribution of wealth upward will actually lower the deficit by reducing revenue. Ronald Reagan’s supply-side economics claims, originally dubbed voodoo economics by George HW Bush, in fact proved Bush prescient. Reagan’s budget director, David Stockman, confessed that the supply side charade was a “Trojan horse” for lowering the upper rate and was just a “horse-and-sparrow” theory of “trickle down.” Thus, Trump’s potential legislative success will only deepen his crisis.Donald turns his lonely eyes to the Federal Reserve to bail him out, like his father, Fred Trump, who always arrived in the nick of time to rescue him from his messes. Trump lies in capital letters: “THE CONSENSUS OF ALMOST EVERYBODY IS THAT, ‘THE FED SHOULD CUT RATES SOONER, RATHER THAN LATER.” There is no such consensus. The consensus is to the contrary.Trump’s begging shifts to threats. If Jerome Powell, the chairman of the Federal Reserve, doesn’t do what Trump says he will be turned into the scapegoat: “Too Late Powell, a man legendary for being Too Late, will probably blow it again – But who knows???”But Powell is imperturbable. “Higher real rates may also reflect the possibility that inflation could be more volatile going forward than in the inter-crisis period of the 2010s,” he said in his most measured tone on 15 May. “We may be entering a period of more frequent, and potentially more persistent, supply shocks – a difficult challenge for the economy and for central banks.”It’s not Powell who is “too late.” It’s Trump. As Evelyn Waugh wrote in his novel Decline and Fall: “Too late, old boy, too late. The saddest words in the English language.”

      Sidney Blumenthal, a former senior adviser to President Bill Clinton and Hillary Clinton, has published three books of a projected five-volume political life of Abraham Lincoln: A Self-Made Man, Wrestling With His Angel and All the Powers of Earth More

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      New Jersey congresswoman LaMonica McIver charged with assault after clash at detention center

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      US representative LaMonica McIver, a Democrat, was charged with assaulting federal agents after a clash outside an immigration detention center in New Jersey, the state’s federal prosecutor announced on Monday.Alina Habba, interim US attorney, said in a post on social media that McIver was facing charges “for assaulting, impeding and interfering with law enforcement” when she visited the detention center along with two other Democratic members of the New Jersey congressional delegation on 9 May.“No one is above the law – politicians or otherwise,” Habba said in a statement. “It is the job of this office to uphold justice impartially, regardless of who you are. Now we will let the justice system work.”McIver on Monday accused federal law enforcement of escalating the situation, saying that it was the Immigration and Customs Enforcement (Ice) agents who “created an unnecessary and unsafe confrontation”.“The charges against me are purely political – they mischaracterise and distort my actions, and are meant to criminalise and deter legislative oversight,” she said.At the same time, Habba announced her office was dismissing a misdemeanor trespassing charge against Ras Baraka, the Democratic mayor of Newark, whose arrest instigated the clash with federal agents.Baraka, the mayor of New Jersey’s largest city and a candidate for the Democratic nomination for governor, was arrested and charged with trespassing as he sought to join the congressional delegation at Delaney Hall, a privately run federal immigration detention center.Habba, who served as Trump’s personal lawyer before being named to the post, said she had dismissed the charge “for the sake of moving forward” and offered to personally accompany Baraka on a tour of the facility, declaring the government has “nothing to hide”.View image in fullscreenKristi Noem, secretary of the Department of Homeland Security, wrote on X that McIver was being charged after a “thorough review of the video footage and an investigation”.Body camera footage released by the agency and shared with Fox News shows a chaotic scene outside the facility’s chain-link fence as the mayor is arrested. During the scuffle, McIver walks through the gate and appears to make contact with a law enforcement officer wearing fatigues and a face covering. It is unclear if the contact is intentional, accidental or the result of being caught in the scrum.Meanwhile, footage from witnesses on the scene appears to contradict the government’s claim that members of Congress stormed the facility.Paul Fishman, an attorney for McIver called the decision to charge the congresswoman “spectacularly inappropriate”, arguing she had the “right and responsibility to see how Ice is treating detainees”.“Rather than facilitating that inspection, Ice agents chose to escalate what should have been a peaceful situation into chaos,” Fishman, the former US attorney for the District of New Jersey, said in a statement.Democrats and legal advocates reacted with alarm on Monday, casting the prosecution of the congresswoman as an attempt to deter legislative oversight and stifle opposition to the Trump administration’s immigration policies, which have included raids and deportations without due process.In a joint statement, House Democratic leaders on Monday condemned the charges as “extreme, morally bankrupt and [lacking] any basis in law or fact”.“There is no credible evidence that Rep McIver engaged in any criminal activity,” the Democrats said, noting that after the incident, Trump administration officials led the members of Congress on a tour of the facility, which they said would not have been permitted “had she done anything wrong”.In a statement on Monday, Bakara welcomed the dismissal of charges against him, but said he would “continue to advocate for the humane treatment of detainees” and “continue to press the facility to ensure that it is compliant with City of Newark codes and regulations”. He also made clear that he stood with McIver, whom he called a “daughter of Newark”. “I fully expect her to be vindicated,” he said.Mike Zamore, national director of policy and government affairs at the ACLU, and Amol Sinha, executive director of ACLU-NJ, warned that the charges against a sitting member of Congress were “more suited for authoritarianism than American democracy”.“If the Trump administration can target elected officials who oppose its extreme agenda, it can happen to any one of us,” they wrote. “We demand that they drop the charges against Rep McIver, and we implore her fellow members of Congress to call for the same.” More

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      Trump news at a glance: thinktank finds legal immigrants stripped of protections and sent to El Salvador prison

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      At least 50 Venezuelan men sent by the Trump administration to a prison in El Salvador had entered the US legally, according to a review by the Cato Institute.Published by the libertarian thinktank on Monday, the report analyzed the available immigration data for only a portion of the men who were deported to El Salvador’s notorious Terrorism Confinement Center (Cecot), and focuses on the cases where records could be found.“The government calls them all ‘illegal aliens.’ But of the 90 cases where the method of crossing is known, 50 men report that they came legally to the United States, with advanced US government permission, at an official border crossing point,” Cato said in its report.Analysis finds at least 50 migrants sent to El Salvador prison entered US legallyThe Cato Institute’s analysis goes against the Trump administration’s claim that only undocumented people were deported to El Salvador.The report says that 21 men were admitted after presenting themselves at a port of entry, 24 were granted parole, four were resettled as refugees, and one entered the US on a tourist visa.The Trump administration deported more than 200 alleged gang members to the Cecot mega-prison in March, controversially invoking the Alien Enemies Act, a 1798 law meant only to be used in wartime, as justification.Read the full storySupreme court sides with Trump on Venezuelans’ protected statusDonald Trump’s administration can end legal protections that have shielded about 350,000 Venezuelans from potential deportation, the supreme court ruled on Monday.America’s highest court granted a request by Kristi Noem, the homeland security secretary, to revoke temporary protected status (TPS) for the Venezuelans while an appeal proceeds in a lower court.Read the full storyTrump and Putin phone call fails to bring breakthrough Vladimir Putin and Donald Trump have held a rare phone call, which the US leader described as “excellent”, but the Kremlin refused to agree to a ceasefire in the war with Ukraine, despite pressure from Washington and European allies.Trump described the call as having gone “very well”. But the Russian leader declined to support the US-proposed 30-day unconditional ceasefire, which Washington had framed as the call’s primary objective. Putin also suggested his country’s maximalist objectives in the war with Ukraine were unchanged.Read the full storyComey says ‘8647’ Instagram post was totally innocentThe former FBI director James Comey has brushed off criticism about a photo of seashells he posted on social media, saying it is “crazy” to think the messaged was intended as a threat against Donald Trump.“I posted it on my Instagram account and thought nothing more of it, until I heard … that people were saying it was some sort of a call for assassination, which is crazy,” Comey said in interview on MSNBC.Read the full storyMohsen Mahdawi graduates from Columbia after Ice releaseThe Columbia University student Mohsen Mahdawi, who was released only weeks ago from federal detention, has crossed the graduation stage to cheers from his fellow graduates.The Palestinian activist was arrested by immigration authorities in Colchester, Vermont, while attending a naturalization interview. He was detained and ordered to be deported by the Trump administration on 14 April despite not being charged with a crime.Read the full storyTrump signs law to combat fake images and online exploitationDonald Trump has signed into law the Take It Down Act, a measure that imposes penalties for online sexual exploitation that Melania Trump helped usher through Congress.The US president had the first lady sign it, too, despite what sounded like a mild objection on her part.Read the full storyCBS News chief steps down amid tense Trump legal battleThe president of CBS News has announced that she is stepping down, citing disagreements with the network’s parent company as it confronts a $20bn lawsuit from Donald Trump and a looming merger.Wendy McMahon, who has helmed the company’s venerated news division since 2023, said in a memo shared in full on social media that “it’s become clear the company and I do not agree on the path forward”.Read the full storyTrump claims without evidence stars were paid to endorse HarrisDonald Trump lashed out at celebrities who endorsed Kamala Harris in late night and early morning screeds on Monday, saying he would investigate them to see if they were paid for the endorsements – repeating a common refrain on the right about the star-studded list of Harris supporters.Read the full storyWhat else happened today:

      The US has officially closed its Office of Palestinian Affairs in Jerusalem, according to an internal state department memo seen by the Guardian, in effect eliminating the Palestinians’ dedicated diplomatic channel to Washington.

      A federal judge has blocked efforts by the Trump administration and its so-called “department of government efficiency” (Doge) to dismantle the US Institute of Peace, at least temporarily.

      The Trump administration has reportedly reached an agreement to pay nearly $5m to the family of the woman who was fatally shot by police while participating in the 6 January 2021 attack on the US Capitol.
      Catching up? Here’s what happened on 18 May 2025. More

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      Trump signs Take It Down Act to combat fake images and online exploitation

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      President Donald Trump on Monday signed into law the Take It Down Act, a measure that imposes penalties for online sexual exploitation that first lady Melania Trump helped usher through Congress, and he had her sign it, too, despite what sounded like a mild objection on her part.“C’mon, sign it anyway,” the president told his wife. “She deserves to sign it.”After she added her signature, the president showed the document bearing both of their names to the audience at the signing ceremony in the White House Rose Garden.Melania Trump’s signature is merely symbolic because first ladies are not elected and have no formal role in the signing of legislation.In March, Melania Trump used her first public appearance since resuming the role of first lady to travel to Capitol Hill to lobby House members to pass the bill following its approval by the Senate.At a signing ceremony, she called the new law a “national victory” that will help protect children from online exploitation, including through the use of artificial intelligence to make fake images.“AI and social media are the digital candy for the next generation, sweet addictive and engineered to have an impact on the cognitive development of our children,” she said. “But unlike sugar, these new technologies can be weaponized, shape beliefs and, sadly, affect emotions and even be deadly.”The president said the proliferation of images made using AI means that “countless women have been harassed with deepfakes and other explicit images distributed against their will”. He said what’s happening is “just so horribly wrong”.“Today, we’re making it totally illegal,” Trump said.The bill makes it a federal crime to “knowingly publish” or threaten to publish intimate images without a person’s consent, including AI-created “deepfakes”. Websites and social media companies will be required to remove such material within 48 hours after a victim requests it. The platforms must also take steps to delete duplicate content.Many states have already banned the dissemination of sexually explicit deepfakes or “revenge porn”, but the Take It Down Act is a rare example of federal regulators imposing on internet companies.The bill, sponsored by Senator Ted Cruz and Congresswoman Maria Elvira Salazar, both Republicans, received overwhelming bipartisan support in Congress, passing the House in April by a 409-2 vote and clearing the Senate by unanimous consent.But the measure isn’t without critics. Free speech advocates and digital rights groups say the bill is too broad and could lead to censorship of legitimate images, including legal pornography and LGBTQ content. Others say it could allow the government to monitor private communications and undermine due process.The first lady appeared at a Capitol Hill roundtable with lawmakers and young women who had explicit images of them put online, saying it was “heartbreaking” to see what teenagers and especially girls go through after this happens to them. She also included a victim among her guests for the president’s address to a joint session of Congress the day after that meeting.After the House passed the bill, Melania Trump said the bipartisan vote was a “powerful statement that we stand united in protecting the dignity, privacy and safety of our children”.Her advocacy for the bill is a continuation of the Be Best campaign she started in the president’s first term, focusing on children’s well-being, social media use and opioid abuse.In his speech to Congress in March, the president said he looked forward to signing the bill.“And I’m going to use that bill for myself, too, if you don’t mind,” he said, adding, that there’s nobody who “gets treated worse than I do online. Nobody.” More

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      Mohsen Mahdawi, released from Ice custody, graduates from Columbia

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      Columbia University student Mohsen Mahdawi, released just over two weeks ago from federal detention, crossed the graduation stage on Monday to cheers from his fellow graduates.The Palestinian activist was arrested by immigration authorities in Colchester, Vermont, while attending a naturalization interview. He was detained and ordered to be deported by the Trump administration on 14 April despite not being charged with a crime.Several students cheered for Mahdawi, 34, who was draped in a keffiyeh as he walked across the stage. He blew a kiss and bowed, one video showed. Then he joined a vigil just outside Columbia’s gates, raising a photograph of his classmate Mahmoud Khalil, who remains in federal custody.“It’s very mixed emotions,” Mahdawi told the Associated Press. “The Trump administration wanted to rob me of this opportunity. They wanted me to be in a prison, in prison clothes, to not have education and to not have joy or celebration.”He is one of several international students who have been detained in recent months for their advocacy on behalf of Palestinians.The Trump administration is attempting to deport them using an obscure statute that gives the secretary of state the right to revoke the legal status of people in the country deemed a threat to foreign policy.Mahdawi was released two weeks later by a judge, who likened the government’s actions to McCarthyist repression. Federal officials have not accused Mahdawi of committing a crime, but argued that he and other student activists should be deported for beliefs that may undermine US foreign policy.For Mahdawi, who earned a bachelor’s degree in philosophy from Columbia’s School of General Studies, the graduation marked a bittersweet return to a university that he says has betrayed him and other students.“The senior administration is selling the soul of this university to the Trump administration, participating in the destruction and the degradation of our democracy,” Mahdawi said.skip past newsletter promotionafter newsletter promotionHe pointed to Columbia’s decision to acquiesce to the Trump administration’s demands – including placing its Middle Eastern studies department under new leadership – as well as its failure to speak out against his and Khalil’s arrest.Khalil would have received his diploma from a Columbia master’s program in international studies later this week. He remains jailed in Louisiana as he awaits a decision from a federal judge about his possible release.As he prepares for a lengthy legal battle, Mahdawi faces his own uncertain future. He was previously admitted to a master’s degree program at Columbia, where he planned to study “peacekeeping and conflict resolution” in the fall. But he is reconsidering his options after learning this month that he would not receive financial aid.For now, he said, he would continue to advocate for the Palestinian cause, buoyed by the support he says he has received from the larger Columbia community.“When I went on the stage, the message was very clear and loud: they are cheering up for the idea of justice, for the idea of peace, for the idea of equality, for the idea of humanity, and nothing will stop us from continuing to do that. Not the Trump administration nor Columbia University,” he said. More

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      As key Israel allies threaten action over Gaza catastrophe, Washington is largely unmoved

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      As Israel orders Palestinians to evacuate Khan Younis in advance of what it calls an “unprecedented attack” on Gaza, much of Washington remains largely unmoved, even as Canada and European countries threaten “concrete actions” if Israel does not scale back its offensive.Despite reports of growing pressure from the Trump administration to increase aid into Gaza, where widespread famine looms, the White House continues to publicly back Israel. National security council spokesperson James Hewitt told the Guardian in an email: “Hamas has rejected repeated ceasefire proposals, and therefore bears sole responsibility for this conflict,” maintaining the policy stance inherited from the previous Biden administration despite mounting evidence of humanitarian catastrophe.The Israeli military on Monday instructed residents of southern Gaza’s Khan Younis to “evacuate immediately” as it prepares to “destroy the capabilities of terrorist organizations” – signalling plans for intensified bombardment in a war that has already claimed more than 53,000 Palestinian lives, according to Gaza’s health ministry.Despite Israeli promises to “flatten” Gaza, opposition from Congress – and mainstream Democrats more broadly – has been largely muted. While the besieged territory faces what the World Health Organization (Who) calls “one of the world’s worst hunger crises”, more than three dozen members of Congress from both parties recently appeared in an American Israel Public Affairs Committee (Aipac) video in celebration of Israel’s 77th birthday. In New York, leading mayoral candidate Andrew Cuomo held up an Israeli flag in the city’s annual Israel Day Parade on Sunday.This political genuflection comes as a March Gallup poll shows American support for Israel has dropped to 46% – its lowest point in 25 years – while sympathy for Palestinians has risen to a record 33%. Democrats reported sympathizing with Palestinians over Israelis by a three-to-one ratio.On a recent episode of The Late Show with Stephen Colbert, Senator Bernie Sanders blamed Washington’s reluctance to change course on the financial muscle of lobbying groups. “If you speak up on that issue, you’ll have super Pacs like Aipac going after you,” Sanders said, noting Aipac’s record $14.5m campaign to unseat Democratic representative Jamaal Bowman after he accused Israel of genocide.A small contingent of progressive lawmakers continue to voice opposition despite being largely iced out from public discourse in Washington. Representative Delia Ramirez of Illinois condemned the “lethal, unaccountable, extremist duo” of Israeli prime minister, Benjamin Netanyahu, and Donald Trump. “Americans have said they do not want to be complicit in their barbaric campaigns. It is time for us in Congress to exercise our power and take action. Not one more cent, not one more bomb, not one more excuse,” she told the Guardian.Representative Ilhan Omar similarly decried the latest chapter of the lopsided war on Gaza, calling it “another unconscionable moral stain”.“Despite the fanfare of Donald Trump’s trip [to the Middle East last weak], they’re not closer to a ceasefire,” Omar said. “It is deeply shameful that innocent civilians are continuing to pay the price.”Vermont senator Peter Welch recently led 29 Senate colleagues in introducing a resolution calling on the Trump administration to end the blockade of humanitarian aid. “It’s been over two months since the Israeli government has been using its power to withhold food, medicine, lifesaving cancer treatments, dialysis systems, formula, and more from starving and suffering families across Gaza,” he said.Resolutions, however, are symbolic gestures meant to publicize opinions and do not have the force of law.While the lawmakers voice their concerns, their impact on policy remains limited, representing the growing disconnect between Washington policymakers and public sentiment. That the grassroots movement for Palestinian rights in the US has grown more subdued – in large part due to an aggressive crackdown by the Trump administration against the universities that were host to last year’s protests – may take some of the pressure off for them to act.One insider familiar with discussions between the US and Israel told the Washington Post that the Americans have been hitting Israel with a tougher stance over the last few weeks. Haaretz has also reported growing pressure by the US on Israel to agree to a framework for a temporary ceasefire.“Trump’s people are letting Israel know: ‘We will abandon you if you do not end this war,’” the insider said. Trump and JD Vance both skipped over Israel on recent trips abroad, widely interpreted as a snub of Netanyahu.Netanyahu has announced the resumption of “minimal” humanitarian aid into Gaza, and the UN said on Monday that nine aid trucks were authorised to enter Gaza, a “drop in the ocean” given the scale of desperation.Whether US voices calling for change in US policy and a wind-down of the catastrophic war are just shouting in the void, may become clearer in the coming days. More

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      JP Morgan chief warns of ‘complacency’ as markets look past credit downgrade

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      JP Morgan chief executive Jamie Dimon warned on Monday that investors were being too complacent as markets shook off news that the US has lost its last triple-A credit rating amid fresh concern over the federal government’s burgeoning debt pile.Credit ratings agency Moody’s dealt a blow to Washington on Friday when it stripped the US of its top-notch rating, downgrading the world’s largest economy by one notch to AA1 and become becoming the last of the big three agencies to drop its triple-A rating for the US.The announcement unnerved markets on Monday morning, but stock markets had recovered by the end of the day.Speaking at JP Morgan’s annual investor day meeting in New York, Dimon warned against complacency. “We have huge deficits; we have what I consider almost complacent central banks. You all think they can manage all this. I don’t think [they can],” he said.Dimon said he saw an “extraordinary amount of complacency” and added that he believes the possibility of stagflation – a recession with rising prices – was far higher than investors believe.Moody’s downgrade came as Donald Trump struggles to push his “big, beautiful” tax and spending bill through Congress, Moody’s said it expected the US budget deficit to keep rising.“Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs,” Moody’s said, announcing its downgrade. “We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration.”Trump administration officials sought to play down the significance of the setback. “Moody’s is a lagging indicator,” Scott Bessent, the treasury secretary, told Meet the Press on NBC on Sunday.The US president has himself remained silent on the downgrade. On Monday morning, he used posts on his Truth Social platform to criticize celebrities including Beyoncé and Bruce Springsteen, who castigated Trump on stage in Manchester last week, for supporting his political rivals.During a rare Sunday night vote, House Republicans advanced Trump’s tax cut and spending package out of a key committee. It has been estimated that the proposed bill could add as much as $5tn to the US’s $36.2tn debt pile over the next decade.On Wall Street, the benchmark S&P 500 fell during early trading, before recovering its losses to close marginally higher, while the tech-focused Nasdaq also closed broadly flat after reversing early declines. The FTSE 100 rose 0.2% in London.Bond markets also came under pressure, with the yield on 30-year US treasury bonds climbing 13 basis points to 5.026%. Yields rise as bond prices drop; an increase signals that investors are seeking a higher return for holding US debt. The dollar weakened against a basket of currencies.“Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat,” said Moody’s. “In turn, persistent, large fiscal deficits will drive the government’s debt and interest burden higher. The US’s fiscal performance is likely to deteriorate relative to its own past and compared with other highly rated sovereigns.” More

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      in US Politics

      Trump officials reportedly reach $5m settlement in January 6 wrongful death suit

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      The Trump administration has reportedly reached an agreement to pay nearly $5m to the family of the woman who was fatally shot by police while participating in the 6 January 2021 attack on the US Capitol carried out by the president’s supporters.Citing multiple sources, the Washington Post reported on Monday that the Trump administration had agreed to pay the family of Ashli Babbitt to settle the wrongful death lawsuit they filed after the attack.Babbitt was attempting to force her way into the lobby of the US House speaker at the time, Nancy Pelosi, when the Trump supporter was shot dead by a Capitol police officer. The payment of about $5m at the center of the settlement is meant to resolve the litigation from Babbitt’s estate, which initially sought $30m in damages.Attorneys for both Babbitt’s family and the federal government each informed a judge earlier in May that they had agreed to settle the case in principle. The case was scheduled to be tried in July 2026.Although a binding agreement had not yet been signed and details of the settlement were not revealed during a court hearing on 2 May,Judge Ana Reyes of the US district court in Washington DC instructed both parties to provide an update by Thursday.Sources with knowledge of the agreement told the Post that Trump’s justice department would pay just less than $5m, with approximately one-third allocated to the family’s legal team, which includes Judicial Watch, a politically conservative organization, and attorney Richard Driscoll of Alexandria, Virginia. These sources requested anonymity due to the sensitive nature of the ongoing case, the Post reported.Democratic House minority leader, Hakeem Jeffries, reacted to the news of the settlement by calling it a “slap in the face” to the American people.Jeffries said that the settlement was “totally done without any communication to the chief of the Capitol police or his lawyers, and appears solely the result of a political determination that Donald Trump and Republicans are going to try to whitewash what happened on January 6.“This settlement is just an extension of what they’ve previously done, which is to pardon violent felons who violently attacked the Capitol on January 6, including police officers, and now have all been pardoned and sent back to communities across the country where in some cases they’re re-engaging in criminal activity,” he added.“Donald Trump and the extreme Maga Republicans are not going to be able to erase what happened on January 6, no matter how hard they try.”The January 6 Capitol attack that Babbitt chose to partake in was a desperate attempt by a pro-Trump mob to keep him in the White House despite his first presidency ending in defeat to Joe Biden in the 2020 election. The attack has been linked to at least eight other deaths, including the suicides of police officers who were left traumatized having defended the Capitol that day.Babbitt’s social media activity showed that she was deeply engaged for months with a conspiracy theory that painted Democratic lawmakers as evil pedophiles with whom Trump was locked in mortal combat. And she also believed lies from Trump and his allies that electoral fraudsters had handed Biden the 2020 election.For weeks before she joined the mob in DC, Babbitt had been retweeting those false claims from Trump himself, as well as the pro-Trump lawyers Lin Wood and Sidney Powell, alleging massive voter fraud before his decisive electoral loss to Biden.Trump then clinched a second presidency after defeating Kamala Harris in November’s election. More