Trump Tariffs Stir Recession Fears, Markets Tumble
By Tyler Pager As a presidential candidate, Donald J. Trump promised an economic “boom like no other.” But eight weeks into his presidency, Mr. Trump is refusing to rule out a recession — a striking change in tone and message for a man who rode widespread economic dissatisfaction to the White House by promising to “make America affordable again.” His comments come as the stock market is tumbling — the S&P 500 fell 2.7 percent Monday after falling 3.1 percent last week — and business leaders are spooked about the uncertainty over his tariffs. Even some Republicans, who fear retribution if they
Judge: Trump Aide Freeze Violated Constitution, Pay Ordered
By Breanne Deppisch A federal judge on Monday ordered the Trump administration to pay the remainder of foreign aid owed to contractors for completed work, noting in a new court ruling that the administration likely violated the separation of powers doctrine by “unlawfully impounding” nearly $2 billion in funds appropriated by Congress. U.S. District Court Judge Amir Ali, a Biden appointee, said in the ruling that the Trump administration likely exceeded its constitutional authority in attempting to block the payments owed by the State Department and the U.S. Agency for International Development (USAID) to grant recipients and foreign aid contractors. “Here, the
Senate Democrats Weigh Options on GOP Funding Bill
By Richard Cowen U.S. Senate Democrats were wrestling on Wednesday with how to respond to a stopgap funding bill passed by the Republican-controlled House of Representatives, choosing between voting for a bill many of them oppose or allowing a government shutdown. President Donald Trump’s Republicans hold a 53-47 Senate majority, but would need the support of at least some Democrats to meet the chamber’s 60-vote threshold to pass most legislation. It could vote on the measure as soon as Wednesday, depending on Democrats’ plans, a source familiar with the Senate Republican discussions said. “There’s a lot of discussion,” said Senator Angus King, an independent
Trump Urges GOP Primary Challenge Against Rep. Massie
By Victor Nava President Trump on Monday called for a fellow Republican to challenge Rep. Thomas Massie (R-Ky.) in a primary election over the congressman’s opposition to a continuing resolution that would keep the government from shutting down. Massie, a hardline conservative, has pledged to vote against a Trump-backed measure that would increase defense spending while decreasing most non-defense spending below 2024 levels through the end of September. The bill, which cleared the House Rules Committee on Monday, has earned the support of the conservative House Freedom Caucus and would avert a government shutdown from taking place at midnight Friday if it passes
Judge Orders Elon Musk-Led DOGE to Release Government Records
By Nate Raymond A federal judge on Monday ordered the government-downsizing team created by U.S. President Donald Trump and spearheaded by billionaire Elon Musk to make public records concerning its operations, which he said had been run in “unusual secrecy.” U.S. District Judge Christopher Cooper in Washington sided with, opens new tab the government watchdog group Citizens for Responsibility and Ethics in Washington in finding that the Department of Government Efficiency (DOGE) was likely an agency subject to the Freedom of Information Act (FOIA). The ruling, the first of its kind, marked an early victory for advocates seeking to force DOGE to
Trump Warns of Recession, Canada’s Carney Hits Back Hard
By Oliver O’Connell,Joe Sommerlad Donald Trump said over the weekend that he could not rule out the possibility of a recession being triggered by uncertainty over his tariff war against the United States’s top trading partners Canada, Mexico and China. “I hate to predict things like that,” the president told Maria Bartiromo on Fox News’s Sunday Morning Futures when pressed about the possibility. “There is a period of transition.” Mark Carney, the former governor of the Bank of England, meanwhile won the race to succeed Justin Trudeau as Canada’s new prime minister last night and wasted no time in vowing to take on Trump in a trade war, urging his country to unite. Carney, who saw off a
Veterans Fired After Trump Cuts: “We Feel Betrayed”
By Brian Witte Nathan Hooven is a disabled Air Force veteran who voted for Donald Trump in November. Barely three months later, he’s now unemployed and says he feels betrayed by the president’s dramatic downsizing of the federal government that cost him his job. “I think a lot of other veterans voted the same way, and we have been betrayed,” said Hooven, who was fired in February from a Virginia medical facility for veterans. “I feel like my life and the lives of so many like me, so many that have sacrificed so much for this country, are being destroyed.” The mass
House GOP Unveils Spending Bill, Risks Government Shutdown
By Kevin Freking House Republicans unveiled a spending bill Saturday that would keep federal agencies funded through Sept. 30, pushing ahead with a go-it-alone strategy that seems certain to spark a major confrontation with Democrats over the contours of government spending. The 99-page bill would provide a slight boost to defense programs while trimming nondefense programs below 2024 budget year levels. That approach is likely to be a nonstarter for most Democrats who have long insisted that defense and nondefense spending move in the same direction. Congress must act by midnight Friday to avoid a partial government shutdown. Speaker Mike Johnson, R-La.,
Trump Eases Canada, Mexico Tariffs Amid Market Turmoil
By Natalie Sherman & Michael Race US President Donald Trump has signed orders significantly expanding the goods exempted from his new tariffs on Canada and Mexico that were imposed this week. It is the second time in two days that Trump has rolled back his taxes on imports from the US’s two biggest trade partners, measures that have raised uncertainty for businesses and worried financial markets. On Wednesday, he said he would temporarily spare carmakers from 25% import levies just a day after they came into effect. Mexican President Claudia Sheinbaum thanked Trump for the move, while Canada’s finance minister said
Judge Orders Trump Admin to Pay $2B in USAID Debts by Monday
By Ellen Knickmeyer A federal judge on Thursday ordered the Trump administration to speed up its payment on some of nearly $2 billion in debts to partners of the U.S. Agency for International Development and the State Department, giving it a Monday deadline to repay the nonprofit groups and businesses in a lawsuit over the administration’s abrupt shutdown of foreign assistance funding. U.S. District Judge Amir Ali described the partial payment as a “concrete” first step he wanted to see from the administration, which is fighting multiple lawsuits seeking to roll back the administration’s dismantling of USAID and a six-week freeze on
