The Consumer Price Index has stalled in the mid-threes, to a 3.4% annual rate in April, the Labor Department reported Wednesday. That's down 0.1 points from the March CPI. Month-over-month inflation was 0.3%, after four months of 0.4% increases. Shelter and gas contributed to more than 70% of the CPI increase, with energy up 1.1%. Food was unchanged, breaking down to food at home -0.2% and food away from home +0.3%. Last month's disappointing CPI no doubt will raise doubts that the Federal Reserve will move to cut interest rates before fall. [UPDATE: The slight decrease in the April CPI is being seen as a positive sign the Fed could still cut interest rates this year, and the Dow Jones Industrial Average on Thursday breached 40,000 points for the first time ever.]
FRIDAY 5/17/24
Some Relief for Gaza – Trucks have begun carrying “badly needed” food, water, fuel and other supplies into the Gaza Strip by the U.S. military onto a new floating pier, The Associated Press reports. Military officials “anticipate” this effort could scale up to 150 trucks per day, as heavy fighting and Israeli restrictions on border crossings has strangled food and supply delivery. There have been reports for weeks of impending starvation.
Even when accelerated to 150 trucks per day, it will hardly be sufficient. Before the Israeli-Hamas war, now seven months old, more than 500 truckloads entered the territory on an average day, the AP says.
International Court … Israeli Justice Ministry official Gilad Noem told the International Court of Justice Friday that the South African case accusing Israel of violating the Genocide Convention “completely divorced from facts and circumstances,” Reuters reports. The government of South Africa has requested the court to order Israel to halt its operations in Rafah and withdraw from Palestinian territory.
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Trump Defense Chews Up Cohen – Donald J. Trump’s defense team denied “loudly and angrily” the ex-president’s much-disliked ex-fixer Michael Cohen’s testimony Thursday, according to The Washington Post. Cohen told the court under cross-examination he spoke with Trump on October 24, 2016, to outline a plan to pay hush money to Stormy Daniels in order to cover up an affair, denied by the ex-president, between the adult film star and Trump.
As a reminder, the case by Manhattan District Attorney Alvin Bragg accuses Trump of falsifying business records to cover up said payments to Daniels, via Cohen, in time for Trump’s 2016 Electoral College win.
Cohen, who could be the last witness in the trial, will return to the stand Monday for the prosecution’s redirect. Trump has not said whether he will take the stand in the case.
--TL
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THURSDAY 5/16/24
SCOTUS Upholds CFPB Funding -- The Supreme Court has upheld, 7-2, funding for the Consumer Financial Protection Bureau, which was created after the 2008 financial crisis to offer consumer protection for mortgages, car loans and other loans, SCOTUSblog reports. Pay day lenders had argued in CFPB v. Community Financial Services Association of America Ltd. that the bureau should be subject to the Constitution's appropriations clause with Congress voting on its budget every fiscal year. Justice Clarence Thomas, writing for the majority said the CFPB "does not have to petition for funds every year" because Congress authorized the bureau to draw from the Federal Reserve System funding its director deems "reasonably necessary to carry out" its charter, subject to an annual inflation rate cap.
Justices Samuel Alito and Neil Gorsuch dissented.
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SCOTUS Restores Louisiana Voting Map – In an unsigned ruling, the Supreme Court’s six conservatives prevailed to restore Louisiana’s congressional voting map, which includes an additional majority-Black voting district, The Washington Post reports. Though considered a “victory” for Black voters and the Democratic Party, justices Sonya Sotomayor, Ketanji Brown Jackson and Elena Kagan dissented.
The 6-3 ruling comes in response to emergency appeals filed after a federal three-judge panel in April ruled the Louisiana map an unconstitutional gerrymander.
Brown Jackson was the only justice to issue an argument, saying SCOTUS’ intervention was “premature.” According to SCOTUSblog her argument is related to the Purcell principle, the idea that courts should not change election rules during the period just before the election because it will cause confusion among voters.
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Attempted Assassination in Slovakia – Slovakia Prime Minister Robert Fico was in critical condition Thursday from five gunshot wounds in what his government called a politically motivated assassination attempt Wednesday, The New York Times reports. The suspect is said to be a 71-year-old poet, who in videos posted online can be seen firing at Fico at point-blank range in the center square of Handlova, where he was shaking hands with supporters after a government meeting. The suspect, who has been arrested, has been called a “lone-wolf” not connected with any political group.
Fico’s condition reportedly stabilized overnight, but doctors are said to be carrying out more procedures in hopes of improving his condition.
Fico, 59, reportedly a pro-Russian ally of Hungarian Prime Minister Viktor Orbán, won his first of three terms as PM in 2006, but lost re-election in 2010. According to the NYT profile, Fico returned to power in 2012 and resigned in 2018 after mass protests over the murder of a journalist investigating government corruption, and his fiancé. He returned for a third term last fall after his Smer party, which leaned liberal during Fico’s first term but has steadily moved right, won parliamentary elections.
--TL
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WEDNESDAY 5/15/24
Let's Debate! -- Yes, well, this time it's Kennedy v. Nixon 1960 style, with no audience to distract from and steal time. Donald J. Trump will debate President Joe Biden Thursday, June 27, on CNN from its Atlanta studios and again on Tuesday, September 10 on ABC News from a to-be-determined location. Both the Republican National Committee and the Biden campaign have rejected the non-partisan Commission on Presidential Debates, which has hosted presidential one-on-ones since 1988.
The RNC has concerns about timing and about accusations of CPD bias, while Biden campaign chair Jen O'Malley Dillon says the commission is "out of step with changes in the structure of our elections and the interests of voters." No decision yet on a vice-presidential debate.
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Blinken Bolsters Ukraine – On his second day in Kyiv, Secretary of State and amateur rock star Antony Blinken announced release of $2 billion in military aid for Ukraine as part of the $61-billion package passed past the last-minute by U.S. Congress last month, the Kyiv Post reports. In a presser with Dmytro Kuleba, Ukraine’s foreign minister, Blinken said the aid is intended “to provide weapons today” and to invest in the country’s infrastructure, another way of saying, according to the Post, that Kyiv is thus enabled to procure military equipment from other countries.
It also is free to strike Russian targets outside its borders.
“We have not encouraged or enabled strikes outside of Ukraine,” Blinken said. “But ultimately Ukraine has to make decisions for itself about how it’s going to conduct this war.”
About that amateur rock star tag… Blinken Tuesday evening wielded a guitar in a basement bar in Kyiv, where he played Neil Young’s Rockin’ in the Free World with a local band named 1999.
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It’s Alsobrooks v. Hogan – Prince Georges County Executive Angela Alsobrooks will face former Maryland Gov. Larry Hogan, a moderate, never-Trumper Republican, in the November race to replace retiring Sen. Ben Cardin (D-MD), NPR’s Morning Edition reports. Alsobrooks handily beat Rep. David Trone for the Democratic nomination, 54% to 41.9%, and Trone quickly reacted by calling on his supporters to vote for Alsobrooks and President Biden.
Hogan would become the first Republican senator from Maryland since Charles Mathias won his third and final term in 1980.
Meanwhile, in West Virginia: Republican Gov. Jim Justice, who first won as a Democrat in 2016 but quickly switched parties, took 61.8% of the GOP vote in Tuesday’s West Virginia primary to replace retiring Sen. Joe Manchin (D-WV), The Washington Postreports. For future trivia questions, Glenn Elliott the Democrat facing Justice for Manchin’s seat.
Also in West Virginia, Rep. Carol Miller held off a challenger from the January 6th riots to win the Republican primary for her seat.
--TL
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TUESDAY 5/14/24
Speaker Support -- House Speaker Mike Johnson (R-LA, above) joined Donald J. Trump Tuesday, NPR reports, at the Manhattan courthouse where the former president is being tried on charges of falsifying business records in connection with hush money payments to a Playboy centerfold and to adult film star Stormy Daniels. Defense attorneys Tuesday cross-examined Trump's ex-fixer/attorney Michael Cohen, who on Monday told jurors of Trump's direct knowledge of the hush money payments, and how he was reimbursed under the bookkeeping heading, "attorney's fees."
Aid Arriving Too Late for Vovchansk? -- Russia's ongoing offensive into Ukraine's second-largest city is "pushing Vovchansk to the brink of annihilation," reports The Kyiv Independent. This marks the first serious Russian offensive to retake territory in Kharkiv Oblast since the beginning of the war. Ukraine's "lightning counteroffensive" retook the city in September 2022.
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Tuesday Primaries -- West Virginia, Maryland and Nebraska hold their primaries Tuesday (The Washington Post). In West Virginia, Gov. Jim Justice faces Rep. Alex Mooney for the Republican nomination for retiring Democratic Sen. Joe Manchin III's seat. Justice has Donald J. Trump's endorsement, but whomever wins will certainly give the GOP a plus-one in the Senate, where Democrats hold a 51-49 majority.
In Maryland, Rep. David Tone faces Prince Georges County Executive Angela Alsobrook in the Democratic primary to fill the seat of retiring Democratic Sen. Ben Cardin. This race also is critical for the Democratic majority, as former Republican Gov. Larry Hogan, a never-Trumper who last year was considered a potential candidate for the GOP presidential primary and then was linked to No Labels' third-party aspirations, will face the winner of the Democratic primary November 5.
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RINO Ryan? -- Donald J. Trump has called on Fox News chief Lachlan Murdoch to fire former House Speaker Paul Ryan (R-WI) off the news organization's board, Vanity Fair reports. Accusing Ryan, a dyed-in-the-wool old-school Republican who says he won't vote for President Biden, either, of being a "RINO", the ex-president is upset that the former speaker says he will not vote for Trump this November.
--Compiled and edited by Todd Lassa
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MONDAY 5/13/24
Menendez on Trial -- Sen. Bob Menendez (D-NJ) faces 16 criminal counts including bribery, fraud and foreign-agent offenses, along with his wife, Nadine, and three New Jersey businessmen in a federal trial beginning in the Manhattan district, Monday. The alleged bribery scheme involves bribes for securing military sales to Egypt and promoting the interests of Qatar, The Wall Street Journal reports.
Cohen Time -- Donald J. Trump fixer-turned-antagonist Michael Cohen testifies this week in Manhattan District Attorney Alvin Bragg's case alleging Trump falsified business documents, a.k.a., the "hush money" case. Cohen "will unearth some of the secrets he buried, revealing a mess that prosecutors say his former boss was desperate to hide," according to The New York Times in its preview of his testimony as a witness for the prosecution.
A year-and-a-half into Trump's presidential term Cohen pleaded guilty in Manhattan federal court for campaign-finance violations and other charges, and was sentenced to three years in prison. He has already spent a year in prison for paying the hush-money, facts Trump's defense team will use against him in cross-examination.
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Accounting for Trump – An Internal Revenue Service audit begun after 2010 of a possible double-dip tax writeoff over the troubled Trump International Hotel and Tower in Chicago could eventually lead to a $100 million tax bill for the former president, according to an investigation by The New York Times and ProPublica reported in the newspaper Sunday. Built just before The Great Recession, the first tax writeoff for the 92-story glass tower on the Chicago River claimed by Trump was in 2008, when he claimed the loan burden and lagging sales, far below his organization’s projections, would make it impossible for the condo-hotel tower to ever make a profit. Trump reported up to $651 million in losses that year, according to the report.
The IRS did not begin its audit, however, until after Trump and his tax advisors shifted the company that owned the tower into a new partnership, according to the NYT’s Sunday front page story.
The tower, built with 486 residences and 339 “hotel condominiums,” and central to the first season of The Apprentice TV show in 2004, is described as Trump’s last major building project, though it is not his first business failure.
Pundit-at-large Stephen Macaulay discusses some of Trump’s Greatest Misses in his commentary, “Would You Have Him Run Your Business?” below in the right column.
Macaulay’s column is opposite Ken Zino’s left-column commentary, “Trump Tanked the Economy, and Biden is Fixing It.” Both columns flank the center-column news on the Friday, May 10 release of the Index of Consumer Expectations by the University of Michigan. We urge you to read all three columns, beginning with the center, for the full Hustings experience.
--Todd Lassa