ALL TOO POWELL

Donald Trump’s assault on the Federal Reserve risks damaging the U.S. economy and exploding his promise to get inflation under control.

• President Donald Trump repeatedly promised on the campaign trail to “immediately bring prices down, starting on Day One.” Instead, he’s launched an unprecedented legal assault on the one guy in America with the most power to actually fight inflation: Federal Reserve Chair Jerome Powell.

• In a dramatic video posted last night, Powell revealed he’s facing a criminal probe overseen by Trump’s handpicked top prosecutor in Washington D.C., former Fox News blowhard Jeanine Pirro. Her team is investigating Powell over testimony he gave to Congress last year about a runup in the cost of renovating the Fed’s century-old HQ. Trump has repeatedly bullied Powell about the renovations’ cost, including on live camera, when they appeared next to each other in the building wearing hard hats.

• But Powell and some top Republicans call this probe a naked power grab aimed at seizing control of America’s central bank. Trump wants Powell to lower interest rates — a move that would (in the short-term, at least) likely juice the economy and pump up the stock market. But it would also come with enormous downsides.

• First of all, Powell hasn’t held interest rates higher just for the giggles. Higher interest rates are one of the strongest tools available for fighting inflation. Jamming the rate down, as Trump wants, could send inflation spiraling out of control.

• Second, ending the Fed’s independence would strike a hammer blow on investor confidence in the U.S. economy, with unpredictable results. Trump’s gambit looks more like the chaos and political intrigue of an emerging market economy, former Fed chairs and other former top economic officials warned in a letter today.

Trump’s move is facing rare pushback from both sides of the aisle.

• Even some of Trump’s GOP allies are fuming, and calling for Powell to be protected. “I do not believe … he is a criminal,” said Sen. Kevin Cramer (R-ND), a Powell critic. “I hope this criminal investigation can be put to rest quickly along with the remainder of Jerome Powell’s term. We need to restore confidence in the Fed.” Sen. Thom Tillis (R-NC) pledged to block any Trump nominee for the Fed until this investigation is resolved. Treasury Secretary Scott Bessent reportedly complained to Trump that the situation could hurt financial markets.

• Then there’s Trump’s glaring hypocrisy. His team is supposedly mad about a construction price tag (which exceeds the initial estimate all the time in the real world). This is the same Trump who recently tore down the East Wing of the White House, without permission, to build a grandiose ballroom — which has doubled in cost.

• What happens next? Powell looks ready to fight, and he doesn’t seem likely to resign from his post before his term ends in May. (He could choose to serve as a Fed governor until January 2028, which would undoubtedly frustrate the president.) Kevin Hassett, a top Trump adviser and conservative economist, is seen as the frontrunner to take the job. He’s a MAGA propagandist, who just said that markets should welcome the Powell investigation.

If Trump turns the Fed into a political arm of the White House, we may all end up paying the cost in literal higher prices, until someone cleans up Trump’s mess.

WHAT ELSE? 👀

Massive protests continue to rock Iran and threaten Supreme Leader Ayatollah Ali Khamenei’s reign. More than 500 protestors have been killed and some 11,000 arrested. Donald Trump has warned of an American military response to the Iranian regime’s crackdown, and will reportedly be briefed tomorrow on options. “We are not warmongers, but we are prepared for war,” Iran Foreign Minister Abbas Araghchi said today. Yeesh.

Minnesota and Twin Cities are suing the federal government to stop its surge of ICE troops to the area. Another 1,000 federal agents are expected to deploy to Minneapolis, after an ICE agent shot and killed Renee Good, a mother of three.

Trump’s DOJ fired another top federal prosecutor for refusing to lead the case against former FBI Director James Comey, MSNOW reports.

Will Donald Trump try to rig the presidential election? It’s looking more likely. Trump regrets not ordering National Guard troops to seize voting machines after the 2020 election, he told the New York Times. Trump didn’t send troops to do so because he doesn’t think they’re “sophisticated enough.” I’m impressed that he found a way to admit he’s an autocrat and call the troops dumb in one sentence.

Trump took shots at ExxonMobile after its CEO appeared skeptical of the president’s plan for American oil companies to re-enter Venezuela. “I’d probably be inclined to keep Exxon out,” Trump told reporters. “They’re playing too cute.” Yeah Exxon, stop being so… cute?

Congress might vote to extend healthcare subsidies after all — and Trump might veto them. Even his MAGA allies say he shouldn’t: “Putting America first means putting Americans first,” Sen. Bernie Moreno (R-OH) told Politico. “People are being affected, and I want to help the people who need help. That’s what we should be doing.”

A record-high number of Americans now identify as politically independent, with 45 percent shunning both major parties. But more independents now lean Democratic, which could mean a boost for the left in the midterms and next presidential election.

Trump brought back the milk mustache. I’m sorry for showing you this, but I saw it, so you also have to. We’re all in this together.

LIGHT AT THE END… ☀️

Sen. Mark Kelly (D-AZ) filed a lawsuit against Defense Secretary Pete Hegseth for waging an “unconstitutional crusade” against the senator. Hegseth has tried to downgrade the retired Navy captain’s retirement rank and pay for speaking out against the Trump administration. “I’m fighting back because this isn’t just about me. This is about the rights of all retired veterans and all Americans,” Kelly tweeted.

Indonesia and Malaysia blocked Elon Musk’s Grok chatbot, the first countries in the world to take action against the AI tool after it allowed users to undress women and girls in photos. Why stop there? Ban Musk, too!

House Republicans, including GOP leaders, are supporting a new bill that would ban lawmakers from buying more individual stocks, aiming to crackdown on insider trading. It was nice knowing you, Nancy Pelosi Stock Tracker.

Who doesn’t love Charli XCX and Cher? The latter was apparently the inspiration for Charli’s hairstyle at the Golden Globes: “Our reference was Cher. There’s a really beautiful photograph of her taken back in the ‘90s in one of these perfect offset moments,” the pop star’s hairstylist Benns told NYLON. “Her hair is the reference, though a little less bouncy — this year the blowout is back and coming with a vengeance.” Cher is very brat.

Legendary boxer Muhammad Ali will soon be featured on a commemorative U.S. postage stamp. Ali, who died a decade ago, once joked that he’d like to be on the stamp, because “that’s the only way I’ll ever get licked.”

A historic church in Washington, D.C. is planning to build more than two dozen apartment units on its property to help homeless military veterans. The building would also provide mental health care and other services, according to church leaders.

Students at a Virginia high school repair about five used cars per year while taking an automotive tech program — and then give them to local single mothers. “Because I had that vehicle, I was able to go from a part-time job to a full-time job; I was able to start school,” one recipient said.

While reading this article about the decline of the Roomba, the roving vacuum cleaner, I discovered that many owners have fun names for their robo-cleaners. Here’s a few: Dirt Reynolds, Meryl Sweep, Soup, and WALL-E. Have you named a vacuum cleaner something silly? Let me know at [email protected].

Every once in a while, a random adorable animal video goes viral, even if it’s now brand new. Here’s one of a group of penguins meeting a kitten, with a link to YouTube so you don’t have to click into X. You’re welcome.