INFLATION RISING -- No wonder Federal Reserve Chairman Jerome Powell said Tuesday the central bank doesn’t “need to be in a hurry” to get back to its interest rate cutting campaign, according to USA Today. The Labor Department reported Wednesday that its Consumer Price Index rose 0.5% in January, to an annual rate of 3%. The CPI had dropped to 2.4% last September as the Fed started easing up on its rate, but this is the wrong direction to meet the Fed’s target rate of 2% inflation. Gasoline was up 1.8% in January, and food was up 0.4%.
FRIDAY 2/14/25
USAID Hold on Hold – Late Thursday US District judge for the District of Columbia Carl Nichols extended by one week a temporary restraining order preventing the Trump administration from placing more than 2,000 US Agency for International Development workers on administrative leave and forcing the return of overseas workers, The New York Times reports.
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Reciprocal Tariffs – The Commerce Department and US trade representatives have been directed to deliver reports on steps to take toward achieving reciprocal trade status in a memo President Trump issued Thursday, The Wall Street Journal reports. How to achieve reciprocal trade?
Glad you asked. Trump wants federal agencies to match duties and certain economic restrictions enforced by other countries against the US. The order does stop short of imposing tariffs immediately, as foreign capitals had feared, according to the report.
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HHS Goes MAHA – That’s “Make America Healthy Again,” former Democratic presidential candidate, current anti-vaxxer and now Health and Human Services Sec. Robert F. Kennedy Jr.’s health care mantra. The Senate confirmed RFK Jr.’s nomination to the post Thursday by 52-48 vote, with Sen. Mitch McConnell (R-KY), a polio survivor and the sole Republican joining all 47 Democrats in opposition, according to The New York Times.
“Individuals, parents and family have a right to push for a healthier nation and demand the best possible scientific guidance on preventing and treating illness. But a record of trafficking in dangerous conspiracy theories and eroding trust in public health does not entitle Mr. Kennedy to lead these important efforts.”--TL
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THURSDAY 2/13/25
McMahon Up – Senate confirmation hearings for Linda McMahon, the ex-executive of the World Wrestling Federation, to become the Trump administration’s Education secretary begin Thursday. McMahon has very thin experience in education, having served on the Connecticut Board of Education in 2009, but that doesn’t matter, because President Trump has said that if she does her job as intended, the US Education Department is history.
The Department of Education is one of the smallest in the federal government, according to NPR. K-12 Dive reported last year that the department’s fiscal year 2024 budget had been cut by half a billion dollars, its first cut since 2015, to $79.1 billion.
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Where’s DOGE Now? – The State Department signed a contract with Elon Musk’s Tesla to purchase $400 million worth of armored vehicles beginning in the fourth quarter, NPR reports. But after news of the procurement circulated Wednesday, the procurement document was edited at 9:12 pm and now says the federal contract was worth $400 million of “armored electric vehicles” with the Tesla brand name removed.
MSNBC’s The Rachel Maddow Show broadcasts begin 9 pm Eastern time, and the eponymous host gave the story perhaps its most high-profile coverage.
Musk tweeted on X/Twitter, “Hey @Maddow, why the lie?”
Cybertruck? … Speculation is that Tesla would fulfill the $400 million contract with its Cybertruck pickup, which starts at $82,000 and has been suffering slow sales and plummeting lease residuals. But that base price would not include armored sheetmetal or thick, bulletproof windows, which would add weight and make it necessary to order more powerful Tesla Cybertrucks, which retail for well over $100,000.
State Department’s award to Tesla was listed December 13, 2024, according to Drop Site News and was targeted to the fourth quarter of this year as a five-year contract.
--Compiled and edited by Todd Lassa
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WEDNESDAY 2/12/25
UPDATE: President Trump said on Truth Social he had “a lengthy and highly productive call” with Russian dictator Vladimir Putin Wednesday, that will start negotiations to end the war in Ukraine, The New York Times reports. Trump reportedly posted the news on his social media site before informing Ukraine’s president, Volodymyr Zelenskyy.
Meanwhile … The Senate confirmed by 52-48 vote former Rep. Tulsi Gabbard (D-HI) as Trump’s director of national intelligence. Sen. Mitch McConnell joined all 47 Democrats as the only Republican to vote against Gabbard.
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Ukraine to Get the Deal Putin Wants – Pete Hegseth revealed the nature of the peace deal the Trump White House will negotiate between Russian dictator Vladimir Putin and Ukrainian President Volodymyr Zelenksyy, in the US defense secretary’s first official overseas trip, meeting with European defense ministers in Brussels Wednesday. In his remarks, Hegseth essentially confirmed worst fears by Ukraine’s US supporters, about President Trump’s promised negotiations between the warring countries.
“We must start by recognizing that returning to Ukraine’s pre-2014 borders is an unrealistic objective,” he said, per The Guardian.
What’s more, Putin will enter negotiations with Trump and Zelenskyy with the understanding that President Trump is ready to pull back US support, maybe even withdraw completely, from NATO.
Hegseth said, in a statement toned down from an advanced briefing to reporters that from now on, Europe will have to provide “the overwhelming share” of future military aid to Kyiv, and that he was “here today to directly and unambiguously express that stark strategic realities prevent the United States of America from being primarily focused on the security of Europe.”
The US defense secretary’s remarks came after Zelenskyy said in an interview with The Guardian that Ukraine could cede territory it controls in Russia’s Kursk Oblast in exchange for Russian-occupied Ukrainian territories -- a return to the pre-2014 map.
Any questions about which side the Trump White House will favor in negotiations were made clear by the Kremlin’s response to Zelenskyy’s offer to exchange held territories.
“This is impossible,” Putin spokesman Dmitry Peskov told the TASS state news agency, echoing Hegseth’s remarks (per The Kyiv Independent). “Russia has never discussed and will never discuss the topic of exchanging its territory.”
This came the day after teacher Marc Fogel, 63, returned to the US from Russia with special envoy Steve Witkoff. His release is part of an exchange in which Alexander Vinnik, 42, co-founder of BTC-e, a key cybercurrency platform used by cyber criminals for ransomware extortions, identity-theft schemes and narcotics distribution, will return to Russia from three years in a California prison, according to The Wall Street Journal.
Witkoff had spent three years in a Russian jail for allegedly entering the country with medical marijuana and was left behind from high-profile prisoner exchanges under the Biden administration. Malphine Fogel had lobbied Trump before his rally in Butler, Pennsylvania – the one at which a bullet grazed Trump’s right ear – for her son’s release.
“I feel like the luckiest man on Earth right now,” Witkoff said. “I will be forever indebted to President Trump, to Steve over there.”
Putin might have reason to show some gratitude, especially as Trump pulls back from NATO. But in remarks Tuesday about the prisoner exchange, Trump did not comment on whether he had directly spoken with Putin.
--Compiled and edited by Todd Lassa
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...meanwhile... TUESDAY 2/11/25
Trump v. Jordan – King Abdullah of Jordan was to meet with President Trump at the White House Tuesday to try and talk, or negotiate, through the Gaza Riviera proposal (per The New York Times). That’s Trump’s apparently serious proposal that Palestinians be cleared out, permanently, of the region Israel has bombed to rubble since Hamas’ October 7, 2023 attack on the Gaza Envelop of southern Israel.
Trump has threatened to end US financial support for Jordan if Abdullah refuses to accept Palestinian refugees, permanently, as the US rebuilds the Gaza Strip into an international vacation destination, likely with at least one or two Trump towers.
Hamas on Monday night threatened to “derail” its truce with Israel, while Trump threatened “all hell” if Hamas failed to release all remaining hostages from its attack on Israel, by this weekend.
But fear not… Hamas has since softened its response, while Trump added a caveat to suggest his threat was only a negotiating tactic.
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Son of Smoot-Hawley Part II – President Trump’s 25% tariff on steel and aluminum from everywhere “will not go unanswered,” European Union chief Ursula von der Leyen says, per The Associated Press. So American producers of bourbon, jeans and motorcycles had better watch out.
The Trump tariffs might not affect steel so much, as the import share here has fallen since 2018 tariffs from the president’s previous term, to about 32%, according to Minnesota Public Radio’s Marketplace. Aluminum is another issue, with the US producing about half of what manufacturers consume, and most the other half coming from Canada.
Much of this is used for electrical components, appliances and aircraft. Boeing’s 737 is about 90% aluminum, Richard Aboulafia of the AeroDynamic Advisory told Marketplace. But even with so much US capacity, industry fears the tariffs will push up steel prices anyway, especially for building construction.
“There are a lot of worries among contractors,” Brian Turmail of the Association of General Contractors of America told the business radio show.
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Bipartisanship Trump-Style – President Trump’s Justice Department has called on federal prosecutors to drop charges in the Southern District of New York’s corruption case against Democratic New York City Mayor Eric Adams, per NPR’s Morning Edition. Adams has called his five-count criminal indictment in which he allegedly received about $100,000 in luxury travel allegedly accepted from Turkish officials in exchange for official New York City Hall acts in their favor “payback” for his speaking out against then-President Biden’s border policy.
Since the presidential election, Adams has visited Trump at Mar-a-Lago and attended his inauguration last month. Charges are to be dropped without prejudice, which means they could be raised again, according to NPR.
About Blagoyevich … Trump in 2020 commuted the sentence of Rod Blagoyevich, who had spent eight years in prison on corruption charges. On Monday, Trump signed a full and unconditional pardon for the former Democratic governor of Illinois, The Hill reports.
“He was set up by a lot of bad people,” Trump told reporters Monday.
Upshot: Like Adams, Blagoyevich has embraced the MAGA GOP, having attended the party’s national convention in Milwaukee last summer.
Adams is up for re-election this year, and the Democratic primary June 24 is widely considered the election (subway vigilante Curtis Sliwa is expected to run, again, as the Republican candidate). Adams’ chief rival for the Democratic primary, so far, appears to be former New York Gov. Andrew Cuomo, a well-known Trump antagonist who brings his own issues (he stepped down as governor after allegations of sexual harassment in office).
Blagoyevich certainly will not run again for Illinois governor, but the current holder of that office is another Trump antagonist, Democrat JB Pritzger, who has declared – satirizing Trump’s Gulf of America – that Lake Michigan is hereby renamed “Lake Illinois.”
--Compiled and edited by Todd Lassa
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TUESDAY 2/11/25