The Federal Reserve raised interest rates yesterday as the new Fed chairman, Kevin Warsh, warned of inflation being “too high” for “too long.” And he didn’t rule out another rate hike in the future.
Trump’s hand-picked chairman tried to stay away from blaming Trump, evading reporters’ questions at a news conference and trying to play up some positive aspects of the economy.
But it was all too clear—and delicious seeing Trump grapple with the fact that the man he put in place to bring rates down ended up raising them, with a unanimous vote of the 12 governors on the board. Trump’s policies helped force the Fed to raise rates. Americans could now see higher borrowing costs on credit cards and car loans—and at a time when they are putting a lot on credit cards, struggling to make ends meet. Mortgage rates, already high, could also face further upward pressure. Gas prices are about to spike further, according to industry analysts. And all just weeks before the midterms.
There are several very clear reasons why inflation is surging and causing the Fed to take action, and Trump’s policies are central to them: his tariffs and his war in Iran, which has caused an energy shock. His tax cuts for the wealthy and his spending have also raised concerns about deficits and inflationary pressure.
You then add everything else on top of it, from his brutal mass deportations and his championing of data centers to his obsession with the Kennedy Center and the ballroom. This is a disaster Trump has created.
Then there was “Trumpalooza” in Dallas last week, the GOP midterm convention at which Trump begged voters to “pretend” he is on the ballot.
You cannot make this up. Not only has there not been an environment like this for the party in power in years, but it’s hard to think of a president who so insistently forced his party to make him the centerpiece of a midterm election, even as the majority of Americans see him as an absolute failure.
The Senate map keeps expanding, with Democrats even looking toward Kansas, South Carolina and Mississippi now. These may not become competitive races—South Carolina and Mississippi are still rated Solid Republican by most analysts—but the fact that Democrats are even looking at such deep-red states is an indication of how much the political environment has shifted.
Trump will continue his efforts to exert more control over the election, as I outlined on Tuesday. And after the Supreme Court slapped him down on mail-in ballots, he may become more desperate. The thuggish FBI Director Kash Patel wouldn’t rule out sending FBI agents to polling places when pressed by senators this week, even though federal law sharply restricts the presence of armed federal officers at polling places. But that hasn’t stopped this gang in the past.
So we’re not out of the woods yet regarding what Trump and MAGA will do in challenging voting rules or votes already cast. But having watched how legal advocates have worked hard, and having seen the courts pushing back, I feel better 47 days out from the election than I thought I’d feel. You might disagree—and I’d like to hear from you—but one thing I didn’t count on was Trump really being the Democrats’ own best weapon.
Sure, running against Trump was always part of the playbook—in addition to running on issues and promising real reform—but I didn’t expect Trump to muck things up just about every single day as the environment deteriorates for the GOP. It’s pretty sadistic as he keeps kicking Republicans while they’re down, making it easier for Democrats to stay focused on their message.
Trump has now helped push Canada further into the arms of the European Union, whose president has proposed making Canada the bloc’s first “associate member.” Canadian Prime Minister Mark Carney has welcomed the prospect of dramatically closer ties. That could have economic implications for states like Michigan, Ohio and Maine that rely heavily on trade with Canada—and where Republican candidates are struggling—particularly if Trump responds with additional tariffs, as he has threatened to do.
This week, Trump of course lashed out at the Federal Reserve, as he did at the Supreme Court earlier in the week, but within hours he was focused again on the Kennedy Center and getting his name on it—with new fears that he might demolish it if he doesn’t, fueled in part by a photo of him aboard Air Force One appearing to look at a placard reading “Kennedy Center DEMOLISHED.”
Whether he actually goes through with this horrific action against the memorial to a revered, assassinated president or not, Trump’s obsession with President Kennedy—his desire to give himself some worth by attaching himself to another president’s name—is so freaky and sends a message to voters that he’s really lost the plot, whirling in his narcissism.
And weeks before a midterm election, it’s all just helping the Democrats build further momentum.