President Donald Trump has pledged cheaper prices and lower interest rates, but an economy transformed by the pandemic will make those promises difficult to keep. Economic growth is solid, driven by healthy consumer spending. And budget deficits are huge and could get even larger. Meanwhile, businesses are borrowing more to step up their investments in data centers and artificial intelligence, leading to a greater demand for loans that can raise interest rates. And if Trump follows through on his promises to impose widespread tariffs on imports and deport millions of immigrants, economists expect inflation could worsen — making it less likely the Federal Reserve will cut its key interest rate much this year. All of these trends will likely keep borrowing costs higher, including for homes and cars. Yet on Thursday during the World Economic Forum’s annual event in Davos, Switzerland, Trump said he would reduce oil prices, and then “I’ll demand that interest rates drop immediately, and likewise, they should be dropping all over the world.” Later, in Washington, Trump told reporters that lower energy costs would reduce inflation, which would “automatically bring the interest rates down.” Asked if he expects the Fed to listen to him on rates, Trump said: “Yeah.” Yet Trump may be facing a bigger challenge than he expects. The surprising resilience of the economy — which has weathered the aftermath of the pandemic, an inflation spike, and several recession scares just in the past few years — may keep borrowing costs higher. Jan Hatzius, chief economist at Goldman Sachs, says the economy is “in the sweet spot of healthy growth.” It has expanded at an annual rate of at least 3% for four out of the last five quarters, the longest such streak in a decade. Unemployment is at a historically low 4.1%. And inflation, which soared to a four-decade high in 2022 and soured most Americans on the economy, is back down to 2.4%, according to the Fed’s preferred measure. Wages, which badly trailed prices in 2021 and 2022, have risen faster than inflation for the past 18 months, which provides the needed fuel for ongoing growth. A healthier economy spurs more Americans to borrow to buy cars, homes, and large appliances, and businesses to invest in IT equipment and factories. Such moves are great for the economy — but more demand for loans to fund all that spending can also keep interest rates elevated. And steadier growth could keep prices higher. Companies that see healthy consumer demand may decide they can charge more, as Netflix announced it would do Tuesday after signing up a surge of subscribers. Such trends are a big change from the last time Trump entered the White House in 2017. Back then, the U.S. economy was emerging from an extended period of sluggish growth and very low inflation that followed the painful 2008-2009 Great Recession. Millions of households saved more and spent less after a borrowing binge earlier in the decade that drove up mortgage and credit card debt. “Households were shrinking their balance sheets relative to their income, and that’s a very significant disinflationary force that is not present now,” said Julia Coronado, president of MacroPolicy Perspectives and a former Fed economist. Today, most households are carrying less debt and upper-income families in particular are benefitting from […]
President Donald Trump threatened to withhold federal disaster aid for wildfire-ravaged Los Angeles unless California leaders change the state’s approach on its management of water. In a Fox News Channel interview on Wednesday, Trump repeated false claims that the state’s fish conservation efforts in the northern part of the state are responsible for fire hydrants running dry in urban areas. He says the blame for Los Angeles’ struggles to tame some of the deadly fires lies with Democratic Gov. Gavin Newsom, a political foe who has called for partnership and mutual respect as the state fights the blazes. “I don’t think we should give California anything until they let the water run down,” Trump said in an interview with Fox’s Sean Hannity. The president leveled the threat as he prepares for the first presidential trip of his second term. On Friday, he will visit Southern California in addition to western North Carolina, which is recovering after Hurricane Helene pummeled the area more than three months ago. Trump in the interview also called for reform of the Federal Emergency Management Agency, claiming it is “getting in the way of everything.” “I’d rather see the states take care of their own problems,” he said. He did not elaborate on his proposed reforms, only saying that the agency is “going to be a whole big discussion very shortly.” In other developments for the new administration, Trump met Wednesday with a small contingent of the most politically endangered House Republicans as the party struggles to agree on a strategy for implementing the tax cuts and other priorities that it promised voters. The meeting happened as Trump tried to advance other priorities during the first week of his second term. Roughly 160 aides at the National Security Council were sent home while it is determined whether they align with Trump’s agenda. The Pentagon has begun deploying 1,500 active-duty troops to support border security efforts. “The American people have been waiting for such a time as this,” said Karoline Leavitt, the White House press secretary. Stephen Miller, a top Trump adviser, met with Senate Republicans to update them on plans for deportations and reinstating Title 42, a policy that was put in place during the coronavirus pandemic to stop border crossings. Although Republicans control the White House and both chambers of Congress, they have only thin majorities on Capitol Hill, and there are disagreements on how to move forward with so many issues on the table. Trump’s meeting unfolded amid a series of private “listening sessions” with House Speaker Mike Johnson, whose ability to unite his conference will be sorely tested in the weeks and months ahead. Trump has held his own dinners with Republican lawmakers at Mar-a-Lago, and he’s preparing to address them next week at their private retreat in Doral, Florida, where the president owns a resort. “We’re working very closely in close coordination with the White House because this is an America First agenda that takes both of those branches of government to work in tandem,” Johnson said Wednesday at a news conference. Trump on Wednesday also announced his picks for U.S. Secret Service director and European Union ambassador. He’s nominating former fast food executive Andrew Puzder to serve as his EU envoy and Secret Service veteran Sean Curran as his pick to […]
Yesterday, several American hikers were shot at in Southern California near Jacumba Hot Springs by suspected cartel smugglers. These smugglers, who had just crossed the U.S.-Mexico border, were guiding a group of undocumented immigrants through the mountains. One hiker was shot in the leg and had to be airlifted to a local hospital. The smugglers, dressed in all-black clothing, escaped back across the border.
Active duty military troops will begin arriving in El Paso, Texas, and San Diego on Thursday evening, in what defense officials said is the first batch of the new forces being deployed to secure the southern border. The Pentagon announced on Wednesday that about 1,500 troops were being sent to the border this week, as the department scrambles to put in motion President Donald Trump’s executive order demanding an immediate crackdown on immigration. U.S. officials said they expect additional troops to be ordered to deploy in the next few days as defense and homeland security leaders iron out requests for more support. The officials said it’s not yet clear how many more service members would get tapped in the near future, but they would include active duty, National Guard and Reserves, and come from land, air and sea forces. Other defense and military officials this week estimated that the additional number deployed could be in the thousands. The troops announced Wednesday include about 1,000 Army soldiers from a variety of units and 500 Marines from Camp Pendleton in California. Officials said Thursday that they expect the bulk of them to be in El Paso — including Fort Bliss — or in San Diego by Friday, where they will get their mission assignments and prepare to spread out along the border. The officials spoke on condition of anonymity to provide details on troop movements. There were already about 2,500 Guard and Reserve forces deployed to the border, and the new 1,500 would add to that total. But officials noted that given the length of the nearly 2,000-mile border with Mexico, it will take additional forces to help put large rolls of concertina wire barriers in place and provide needed transportation, intelligence and other support to the Border Patrol. As of Thursday there were still no requests for the use of military bases to house migrants or for troops to be used for law enforcement duties. (AP)
BREAKING: President Trump’s nominee for FBI Director, Kash Patel, is scheduled for his confirmation hearing on January 30, 2025. Patel, known for his advocacy of significant reforms within the FBI, including the potential declassification of sensitive government documents, will face scrutiny from the Senate Judiciary Committee.
California has passed legislation allocating $2.5 billion specifically for the recovery efforts in the Los Angeles area, which was severely impacted by recent deadly wildfires.
President Donald Trump has revoked government security protection for former Secretary of State Mike Pompeo and his top aide, Brian Hook, who have faced threats from Iran since they took hard-line stances on the Islamic Republic during Trump’s first administration. A congressional staffer and a person familiar with the matter, speaking on the condition of anonymity to discuss personal security details, confirmed the change, but neither could offer an explanation. They said that Pompeo and Hook were told of the loss of protection on Wednesday and that it took effect at 11 p.m. that night. It’s another sign of steps Trump is taking just days into his return to the White House to target those he has perceived as adversaries. A day earlier, Trump, a Republican, revoked the security clearance and Secret Service protection from John Bolton, who was fired as Trump’s national security adviser during his first term. Bolton later wrote a book whose publication the White House unsuccessfully sought to block on grounds that it disclosed national security information. Bolton, who has been targeted for assassination by Iran, said in a statement that he was disappointed but not surprised by the decision. Trump also revoked security clearances for dozens of former intelligence officials who signed a 2020 letter saying the Hunter Biden laptop saga bore the hallmarks of a “Russian information operation.” Trump had soured on Pompeo some months ago, saying publicly that he would play no role in his new administration. In a social media post this week, he fired Hook from his presidentially appointed position on the board of the Wilson Center, a think tank. Asked about the move to end Pompeo and Hook’s security, Trump replied to reporters: “Do you want to have a large detail of people guarding people for the rest of their lives? I mean, there’s risks to everything.” That language was similar to the explanation he gave when asked about Bolton’s security detail. A representative for Pompeo did not immediately reply to a request for comment, and Hook has not responded to multiple voice and text messages from the AP since Bolton was stripped of his protection on Tuesday. The New York Times first reported on the loss of protections. The Biden administration’s State Department had provided and then systematically renewed round-the-clock protection by the Diplomatic Security Service for Pompeo and Hook since Jan. 21, 2021, when they left office along with Trump. The last such authorization was on Oct. 21. Pompeo and Hook were the public faces of the U.S. “maximum pressure” campaign against Iran after Trump withdrew from the Iran nuclear deal in 2018, which offered relief on sanctions in exchange for drastically limiting its nuclear program. And Iran has blamed both for the killing of Iran Revolutionary Guard commander Qassem Soleimani on Jan. 3, 2020. According to a March 2022 report to Congress, the State Department said it was paying more than $2 million per month to provide 24-hour security to Pompeo and Hook. But later determinations did not give a dollar amount. In those notifications, the State Department told lawmakers that threats against Pompeo and Hook remain “serious and credible” and continue to warrant government-provided security details. Biden administration officials briefed Trump officials earlier this month about the ongoing threat posed by Iran to Pompeo, Hook, Bolton […]
President Donald Trump signed an executive order on artificial intelligence Thursday that will revoke past government policies his order says “act as barriers to American AI innovation.” To maintain global leadership in AI technology, “we must develop AI systems that are free from ideological bias or engineered social agendas,” Trump’s order says. The new order doesn’t name which existing policies are hindering AI development but sets out to track down and review “all policies, directives, regulations, orders, and other actions taken” as a result of former President Joe Biden’s sweeping AI executive order of 2023, which Trump rescinded Monday. Any of those Biden-era actions must be suspended if they don’t fit Trump’s new directive that AI should “promote human flourishing, economic competitiveness, and national security.” It also calls for the development of an AI action plan within 180 days. Leading the work will be a small group of White House tech and science officials, including a new Special Advisor for AI and Crypto — a role Trump has given to venture capitalist and former PayPal executive David Sacks. Just hours after returning to the White House on Monday, Trump repealed former President Joe Biden’s 2023 guardrails for fast-developing AI technology. Until Thursday, it wasn’t clear if Trump planned to replace Biden’s signature AI policy with his own order. Trump had also signed executive orders on AI in his previous term, which are still on the books. Much of Biden’s 2023 order set in motion a sprint across government agencies to study’s AI impact on everything from cybersecurity risks to its effects on education, workplaces and public benefits, with an eye on ensuring AI tools weren’t harming people. That work is done. One major piece that remained — until Trump rescinded it Monday — was a requirement that tech companies building the most powerful AI models share details with the government about the workings of those systems before they are unleashed to the public. The Trump order’s focus on “human flourishing” echoes the language of his campaign’s long-held promise to cancel Biden’s AI policy once back in the White House. It’s also in line with ideas espoused by Trump adviser Elon Musk, who has warned against the dangers of what he calls “woke AI” that reflects liberal biases. In a statement, Americans for Responsible Innovation, a nonprofit organization, said Trump has “made it clear from day one that his top priority on AI is out-innovating the rest of the world.” “Today’s executive order is a placeholder until the administration has a chance to develop a full strategy for executing that vision,” said the organization’s executive director, Eric Gastfriend. Agencies had already frozen work on AI policies initiated by the last administration following Trump’s repeal of Biden’s executive order on Monday, Gastfriend said. “This new instruction shouldn’t come as a surprise,” he said. (AP)
President Donald Trump signed an executive order on Thursday to declassify government files related to the assassinations of former President John F. Kennedy, Robert Kennedy, and Martin Luther King Jr. While signing the order, Trump declared, “Everything will be revealed,” and handed the signing pen to Robert F. Kennedy Jr. “That’s a big one, huh? A lot of people have been waiting for this for decades,” Trump added. Trump had previously promised to release all records related to JFK’s 1963 assassination in Dallas, an event that remains shrouded in mystery and conspiracy theories. The shooter, Lee Harvey Oswald, was killed shortly after his arrest, fueling decades of speculation about the events surrounding the assassination. While much of the material on JFK’s death has already been released—97% of the National Archives’ 5 million pages on the case are public—Trump’s order addresses the remaining classified files. In 2017, during his first term, Trump authorized the release of some 3,000 previously unseen documents and 30,000 partially redacted ones, though not all files were made public at that time. The release also revisits Trump’s past comments about JFK’s assassination. In 2016, he famously referred to a National Enquirer story suggesting a connection between Senator Ted Cruz’s father and Lee Harvey Oswald, which Cruz’s campaign dismissed as baseless. During his first administration, Trump had promised to release all the files related to John F. Kennedy, but an undisclosed amount of material remains under wraps more than six decades after Kennedy was killed Nov. 22, 1963, in Dallas, Texas. The primary suspect, Lee Harvey Oswald, was killed two days later by Jack Ruby. After appeals from the CIA and FBI, Trump blocked the release of hundreds of records. Trump said at the time the potential harm to U.S. national security, law enforcement or foreign affairs is “of such gravity that it outweighs the public interest in immediate disclosure.” “I have now determined that the continued redaction and withholding of information from records pertaining to the assassination of President John F. Kennedy is not consistent with the public interest and the release of these records is long overdue,” Trump’s order states. “And although no Act of Congress directs the release of information pertaining to the assassinations of Senator Robert F. Kennedy and the Reverend Dr. Martin Luther King, Jr., I have determined that the release of all records in the Federal Government’s possession pertaining to each of those assassinations is also in the public interest.” (YWN World Headquarters – NYC)
A 32-year-old resident of East Jerusalem’s Issawiya neighborhood was arrested last month on suspicion of maintaining contact with Hezbollah and other terror groups, according to a joint statement from Israel Police and Shin Bet. The suspect, whose name has not been released, was detained on December 25 and handed over to Shin Bet for questioning. Authorities allege that he had been in frequent communication with Hezbollah operatives over several years and was a member of an online group affiliated with the terror organization, called the “Resistance Axis.” Investigators say the suspect shared sensitive photographs of key sites and traveled to Jenin in the West Bank to meet with operatives from other terror groups, posing for photos with their weapons. The case is part of a broader pattern of recruitment efforts by Iran and Hezbollah to enlist Israeli residents for espionage and attacks. Recent months have seen several arrests and indictments related to these activities, including Jerusalem residents reportedly recruited via a Hezbollah operative using the alias “Dania.” The suspect’s indictment is expected soon. (YWN World Headquarters – NYC)
President Donald Trump is reportedly preparing to appoint his Middle East envoy, Steve Witkoff, to spearhead diplomatic negotiations with Iran. According to reports from The Financial Times and Axios, the move suggests Trump may prioritize diplomacy before increasing pressure on Tehran. Witkoff, a real estate mogul who played a key role in securing the recent ceasefire deal with Hamas, is expected to lead efforts to curb Iran’s nuclear program. This aligns with Trump’s broader goal to reduce conflicts in the region, the FT reported. While the U.S. National Security Council has not confirmed the reports, a senior Republican staffer expressed concern, accusing Witkoff of easing pressure on groups like Hamas and Hezbollah, potentially endangering American interests and allies such as Israel. In recent interviews, Witkoff stressed his commitment to diplomacy, praising Qatar’s role in negotiating recent agreements and expressing optimism about fostering regional cooperation. During his first term, Trump imposed strict sanctions on Iran and withdrew from the 2015 nuclear deal. Following his re-election, he has signaled plans to renew a “maximum pressure” campaign, targeting Iran’s oil income while reiterating his opposition to Iran’s pursuit of nuclear weapons. Israeli Prime Minister Binyamin Netanyahu has expressed support for Trump’s policies, saying they share a unified perspective on addressing the Iranian threat. (YWN World Headquarters – NYC)
A new survey conducted by the Conference on Jewish Material Claims Against Germany has found that a majority of people in seven countries believe a genocide against Jewish people similar to the Holocaust could happen today. The findings also highlight a concerning decline in knowledge about the Holocaust, particularly among younger generations. The survey polled adults in the United States, the United Kingdom, France, Austria, Germany, Poland, Hungary, and Romania. The results were released ahead of the 80th anniversary of the liberation of Auschwitz on January 27, 2024. In the United States, 76% of respondents said they believed another Holocaust could occur, followed by 69% in the UK, 63% in France, 62% in Austria, 61% in Germany, 54% in Poland, and 52% in Hungary. Romania had the lowest percentage, with 44% considering such a scenario possible. The survey also revealed significant gaps in Holocaust knowledge. Across countries, a large share of people underestimated the number of Jewish victims, with 18% to 28% believing that two million or fewer Jews were killed, far below the historically documented six million. Alarmingly, younger respondents aged 18-29 were more likely to believe the death toll had been exaggerated. In France, 46% of young adults said they were unfamiliar with the Holocaust, compared to 15% in Romania, 14% in Austria, and 12% in Germany. Overall, one in five French adults reported they had not heard of the Holocaust or were unsure if they had. When asked to name Nazi concentration camps, nearly half of Americans (48%) could not identify a single one out of the more than 40,000 camps and ghettos established during World War II. A quarter of respondents across all countries also failed to name any camps or ghettos. Holocaust denial and distortion were identified as significant issues, particularly in the U.S. and Hungary, where respondents reported denial was more prevalent. Despite the troubling trends, there is broad global consensus on the importance of Holocaust education. More than 90% of respondents in all countries agreed that teaching about the Holocaust is essential to ensure history does not repeat itself. Gideon Taylor, president of the Claims Conference, called the gaps in knowledge “deeply concerning,” emphasizing the need for more effective Holocaust education. “The alarming gaps in knowledge, particularly among younger generations, highlight an urgent need for more effective Holocaust education,” he said. Matthew Bronfman, head of the team that commissioned the report, struck a hopeful note, pointing to the widespread support for Holocaust education. “Now our task is clear; we must take this mandate and make it happen,” he said. (YWN World Headquarters – NYC)
President Donald Trump called out Bank of America CEO Brian Moynihan at the World Economic Forum on Thursday, accusing the bank of not offering banking to conservatives. “You’ve done a fantastic job,” Trump told Moynihan during a question and answer session, “but I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank — and that included a place called Bank of America… They don’t take conservative business.” “And I don’t know if the regulators mandated that because of [President Joe] Biden or what,” Trump continued, “But you and [JPMorgan CEO Jamie Dimon] and everybody – I hope you’re going to open your banks to conservatives, because what you’re doing is wrong.” Moynihan did not respond to Trump’s remarks regarding fair banking for conservatives, and instead changed the subject, telling the president that Bank of America looks forward to sponsoring the World Cup when it comes to the U.S. Bank of America has faced multiple allegations of discriminating against conservatives in recent years. Attorneys general from 15 states called out Bank of America’s alleged “discriminatory behavior” in a letter that condemns the de-banking efforts targeting customers for their religious and political beliefs. A Bank of America spokesperson denied the bank has closed accounts for political reasons and said they “welcome conservatives.” “We serve more than 70 million clients and we welcome conservatives,” the spokesperson told FOX Business. “We are required to follow extensive government rules and regulations that sometimes result in decisions to exit client relationships. We never close accounts for political reasons and don’t have a political litmus test.” A JPMorgan spokesperson said in a statement that the bank would “never close an account for political reasons, full stop. We follow the law and guidance from our regulators and have long said there are problems with the current framework that Washington must address.” “We welcome the opportunity to work with the new Administration and Congress on ways to remove regulatory ambiguity while maintaining our country’s ability to address financial crime,” the spokesperson said.
A man who entered the U.S. Capitol with a handgun in his possession and took a tour of the building faces weapons charges, police said Thursday. The 27-year-old Massachusetts man was arrested Tuesday after Capitol police officers found him leaving the Library of Congress and walking toward his car, police said in a news release. Officers found a handgun concealed in his waistband, police said. Nobody was hurt, and the Capitol police said they found no evidence that the man “was coming to harm the Congress.” A police officer who allowed the man into the Capitol after searching him has been suspended pending a department investigation. Security video showed the man entering the Capitol through a security checkpoint. After magnetometers sounded, the officer performed a “secondary hand search” and then let him into the building, police said. The Capitol police “demands the highest standards when it comes to screening visitors, so a full review of this incident has already been ordered, as well as mandatory refresher training on security screening, so this never happens again,” the department said. The man was arrested on charges including carrying a pistol without a license, possession of an unregistered firearm, illegal possession of ammunition and resisting arrest. House lawmakers whose committee oversees the Capitol police said they are “severely disappointed in the security failure” and will require the department to conduct “a robust review of all visitor screening practices.” “We must ensure this never happens again,” said a joint statement from the House Administration committee’s chair, Rep. Bryan Steil, R-Wisconsin, and ranking member, Rep. Joe Morelle, D-New York. (AP)
In the first three days of the Trump administration, ICE arrested over 840 illegal aliens, according to NewsNation, though this figure does not account for those taken into custody by Border Patrol, Homeland Security, or the US Marshals.
Jobless claims applications ticked up modestly last week, but the total number of Americans collecting unemployment benefits rose to their highest level in more than three years. Applications for jobless benefits rose by 6,000 to 223,000 for the week ending January 18, the Labor Department said Thursday. Analysts were expecting 219,000 new applications. Weekly applications for jobless benefits are considered a proxy for layoffs. The total number of Americans receiving unemployment benefits for the week of January 11 climbed by 46,000 to 1.9 million, the most since November of 2021. The rising level of continuing claims, the total number of Americans collecting jobless benefits, suggests that some who are receiving benefits are finding it harder to land new jobs. That could mean that demand for workers is waning, even as the economy remains strong. The four-week average of continuing claims is about 100,000 higher than it was a year ago. Though some signs of labor market weakness surfaced in 2024, jobs are still plentiful and layoffs historically low. Earlier this month, the Labor Department reported that job growth in December surged and unemployment fell. Employers added 256,000 jobs last month and the unemployment rate ticked down to 4.1%. The final jobs report of 2024 underscores that the economy and hiring were able to grow at a solid pace even with interest rates much higher than they were before the pandemic. As a result, the Federal Reserve could be much less likely to cut borrowing costs again in the coming months after issuing three cuts late in 2024. Overall, the solid jobs figures suggest the economy is entering a post-COVID period of steady growth, higher interest rates, low unemployment, and slightly elevated inflation. Though layoffs remain healthy by historical standards, several high-profile companies have announced job cuts in the past few months. Facebook parent company Meta announced earlier this month that it was laying off 5% of its staff and spirits giant Brown-Forman — the maker of Jack Daniel’s — said it’s reducing its global workforce by about 12%. Late in 2024, GM, Boeing, Cargill and Stellantis all announced layoffs. (AP)
Trump has directed the Director of National Intelligence to examine the JFK documents and submit a strategy for their full disclosure within 15 days. The files on RFK and MLK Jr. are scheduled for release within 45 days.
”President Trump wants to meet immediately with Vladimir Putin. President Zelenskyy has told President Trump that he is ready to make a deal to end the war.”
President Donald J. Trump issues pardons to peaceful pro-life activists who were prosecuted by the Biden administration for exercising their First Amendment rights.
