The Dictatorship
Trump might give away access to your 401(k) retirement funds
The private equity industry wants to get into your 401(k). The industry is lobbying the Trump administration to issue an executive order that would open the way for retirement plans to add private equity investments. The effort brings to mind Groucho Marx’s famous observation“I don’t want to belong to any club that will accept me as a member.” Why would this supposedly elite investment class want the Trump administration to make it easier for small-time savers to invest in their offerings?
The answer, as you might suspect, is nothing good.
Before I proceed further, some explanations are in order. Private equity consists of companies and other investments controlled by private firms, which are almost always acquired with significant amounts of debt — hence the term “leveraged buyout.” The stated idea is to buy a company, overhaul its underlying finances, and then sell it again within a few years at a profit.
The private equity industry boomed following the 2008 financial crisis, when consistently low interest rates facilitated mergers and acquisitions. While the industry blamed then-Federal Trade Commission Chair Lina Khan and the Biden administration’s tougher antitrust enforcement for the end of the M&A boom, the real culprit was the return of high interest rates and private equity shops overvaluing their holdings. Unable to sell many of their holdings at the price they would like, and short of traditional institutional investors in their funds, where can private equity turn? I’m afraid that this is where you enter the picture.
The industry has every reason to expect help from this White House. Republicans in Congress have already placed a provision in Trump’s big, beautiful budget bill that would increase the tax break for interest payments on the leveraged buyouts that private equity loves. And toward the end of Trump’s first term, his administration loosened regulations surrounding 401(k) accounts, agreeing with industry lobbyists that the arena met the standard of a “prudent” investment for retirement savers.
To be clear, in the view of many, it is not. The Biden administration, for instance, backtracked on much of the previous Trump-era guidance. And employers, who are considered fiduciaries for worker retirement accounts and can find themselves in court battling their former employees if things don’t work out, didn’t exactly race in to offer up private equity offerings in 401(k) accounts.
Champions of private equity claim that with promising startups and other companies less likely to go public than in the past, private equity could give mom-and-pop savers access to greater diversity in their portfolios as well as the possibility of higher returns.
The reality is different. The industry is famously opaque, and its high fees cannibalize much of the gains. “PE funds may look good on paper since they place a high value on their unsold companies, but this is not money that investors can take to the bank,” says Eileen Appelbaum, the co-director of the Center for Economic and Policy Research. “Since mid-2022, the companies in private equity portfolios have been overvalued, and PE funds have been unable to sell them at the price they are demanding.”
The result is a poor investment — except for the fat cats collecting management fees on it, that is. A recent analysis found that the S&P 500 returned better results than private equity over a one-, three-, five-, and 10-year period. Multiple other studies have yielded similar results.
Compounding this: The private equity model can be horrible for consumers and employees of the companies acquired and owned in this fashion. That’s because the debt to acquire the company isn’t the responsibility of the private equity firms, their partners or principals. It is, instead, a dead weight on the books of the company unfortunate enough to be purchased in this way, often leading to service and staff cutbacks, price increases and selling off companies piecemeal.
Private equity-controlled companies are more likely to declare bankruptcy than those with different ownership structures, and those filings are hovering at record rates. Of the 10 largest corporate bankruptcies in the first quarter of 2025, seven companies were owned by private equity. Think Forever 21. Think Joann, the fabrics and crafts chain. Think Prospect Medical Holdings, which owns more than dozen hospitals. In fact, health care companies controlled by private equity charge higher prices, yet their patients have higher rates of accidents, complications and deaths.
In other words, private equity all too often acts as an economic scavenger and parasite. The efficiencies of scale the industry claims it can find can literally be deadly. And for what? To make some fabulously wealthy members of the investment class even wealthier?
Nonetheless, now with Trump back in the White House, the financial services industry is racing in to make private equity in your retirement accounts a reality. Earlier this week, BlackRock announced it was debuting a target date fund that would include stocks, bonds and private equity and credit investments. This follows similar moves by State Street and retirement plan provider Empower.
Again, none of this is appropriate for savings that are supposed to let Americans enjoy a stable retirement. This won’t end well — for you, that is. Private equity is a club, and you don’t want it to accept you as a member.
Helaine Olen is a managing editor at the American Economic Liberties Project. She is the author of “Pound Foolish: Exposing the Dark Side of the Personal Finance Industry” and a co-author of “The Index Card: Why Personal Finance Doesn’t Have to Be Complicated.” She has been a columnist for The Washington Post and Slate, and her work has also appeared in numerous other publications, including The New York Times and The Atlantic.
WASHINGTON (AP) — The Republican senator who had effectively blocked confirmation of President Donald Trump’s pick to lead the Federal Reserve said Sunday he was dropping his opposition after the Department of Justice ended its investigation of the current central bank chair.
The announcement by Sen. Thom Tillis of North Carolina removes a big hurdle to Trump’s effort to install Kevin Warsha former high-ranking Fed official, in the job in place of Jerome Powell, long under White House pressure to lower interest rates. Tillis’ opposition was enough to stall the nomination in the GOP-controlled Senate Banking Committee as Powell neared the scheduled end of his term on May 15.
“I am prepared to move on with the confirmation of Mr. Warsh. I think he’s going to be a great Fed chair,” Tillis told NBC’s “Meet the Press,” two days after the U.S. attorney for the District of Columbia said her office’s investigation of the Fed’s multibillion-dollar building renovations was over. Powell’s brief congressional testimony last summer about that work was also under review.
The Fed’s internal watchdog is scrutinizing a project, now at $2.5 billion after earlier estimates had put it at $1.9 billion, that the Republican president has criticized for cost overruns. Powell had asked in July for the inspector general’s review.
“I believe that there will not be any wrongdoing. Maybe we find a little stupid here in terms of somebody responsible for the project making a decision they shouldn’t? Maybe. But it doesn’t rise to a criminal prosecution. That was my problem to begin with because I feel like there were prosecutors in D.C. that thought this was going to be a lever to have Mr. Powell leave early,” he said.
Tillis, who infuriated Trump in June for opposing his big tax and spending cuts bill over Medicaid reductions and then announced he would not seek reelection in 2026, added that he had received assurances from the Justice Department that “the case is completely and fully settled … and that the only way an investigation would be opened would be a criminal referral from one of the most respect inspector generals.”
Important week for Fed leadership
The committee on Saturday said it planned to vote Wednesday on Warsh’s nomination. The ranking Democrat, Massachusetts Sen. Elizabeth Warren, responded with a statement that “no Republican claiming to care about Fed independence should support moving forward the nomination of Kevin Warsh, who proved in his nomination hearing to be nothing more than President Trump’s sock puppet.”
Also Wednesday, Fed policymakers will meet and are expected to keep their key interest rate unchanged for the third straight meeting, shrugging off Trump’s demands for a cut. At a news conference, Powell could indicate whether he will remain on the Fed’s board of governors after his term as chair ends, an unusual but not completely unprecedented step that would deny Trump the opportunity to fill another seat on the seven-member board. Powell’s term as a governor lasts until January 2028.
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At a hearing last week, Warsh told senators he never promised the White House that he would cut interest rates and pledged to be “an independent actor” if confirmed as chair. Hours before that, Trump had been asked in a CNBC interview whether he would be disappointed if Warsh did not immediately cut rates. “I would,” the president said.
Without the constraints of a political campaign, Tillis has spoken out forcefully about Powell, decrying the inquiry by U.S. Attorney Jeanine Pirro, a longtime Trump ally, as a “vindictive prosecution” and suggested it threatened the Fed’s longtime independence from day-to-day politics. Tillis told NBC that he had gotten assurances from the Justice Department that he needed “to feel like they were not using DOJ as a weapon to threaten the independence of the Fed. So this will allow Mr. Warsh to move on with his confirmation.”
On Saturday, Trump was asked by reporters whether there was now smooth sailing for Warsh with the end of the Justice Department’s investigation. “I imagine it’s smooth,” Trump said, adding that his nominee “is going to be fantastic.” The president said he still wanted to find out “how can a building of that size cost … whatever it’s going to be.”
Trump visited the Fed building in July and, in front of television cameras, said the renovations would run $3.1 billion. Powell, standing next to him, said after looking at a paper presented to him by Trump, that the president’s latest price tag was incorrect.
Justice Department pursues Trump adversaries
The investigation was among several undertaken by the Justice Department into Trump’s perceived adversaries. For months it had failed to gain traction as prosecutors struggled to articulate a basis to suspect criminal conduct. Other efforts by the department to prosecute Trump’s adversaries, including New York state Attorney General Letitia James, a Democrat, and former FBI Director James Comey, have also been unsuccessful.
Last month, a federal judge quashed Justice Department subpoenas issued to the Fed in the investigation, describing their purpose as “to harass and pressure Powell to resign” and open the path for a new chair. A prosecutor handling the Powell case had acknowledged at a closed-door court hearing that the government had not found any evidence of a crime.
Pirro said Friday on X that she “will not hesitate to restart a criminal investigation should the facts warrant doing so.” The acting attorney general, Todd Blanche, told NBC on Sunday that ”there is no doubt that we will investigate” if the inspector general finds evidence of criminal conduct.
Warsh is a financier and former member of the Fed’s board of governors. Trump nominated him in January.
The Dictatorship
Blanche says administration officials were apparent targets at correspondents’ dinner
Trump administration officials — “likely including the president” — were the apparent targets of the shooting at the annual White House correspondents’ dinner, acting Attorney General Todd Blanche said Sunday.
In an interview with NBC’s “Meet the Press” the morning after President Donald Trump was rushed off stage by Secret Service agents as guests ducked under dining tables while shots rang out at the White House Correspondents’ Association Dinner, Blanche said of the gunman: “We believe that he was targeting administration officials.”
Blanche cautioned that the belief is “quite preliminary” as law-enforcement officials sift through evidence. The acting attorney general said investigators had recovered the suspect’s “electronic devices” and that “there were some writings, and we’ve already spoken with several witnesses who knew him.”
He did not elaborate on the writings. But the New York Post obtained what it called a 1,052-word missive from the gunman, sent to his family members moments before he carried out the foiled attack, in which he said he intended to target administration officials.
The suspect referred to himself as the “Friendly Federal Assassin” in closing his letter. Law enforcement sources described the writings to MS NOW as anti-Trump in nature but not aligned to one specific ideology.
In an interview on Sunday with CBS News’ “60 Minutes,” Trump said he read the alleged gunman’s manifesto. “He’s radicalized,” Trump said. “He was probably a pretty sick guy.”
U.S. Secret Service spokesman Anthony Guglielmi said Sunday that the suspect’s brother in New London, Connecticut, contacted local police, who then alerted the Secret Service. Guglielmi said the Secret Service learned of the suspect’s writings sometime between 9 and 11 p.m. ET Saturday night.
Blanche said investigators believe that the suspect, which a former senior law enforcement official identified to MS NOW as 31-year old California resident Cole Tomas Allen, acted alone. He said the man traveled by train from Los Angeles to Chicago and then from Chicago to Washington. The suspect had two firearms on him that were purchased legally in past couple of years, Blanche said.
The armed suspect was tackled near a security checkpoint at the Washington Hilton hotel, where the event has been held annually for decades, before he could enter the ballroom. He was taken into custody, hospitalized and remains under observation, according to D.C. interim Police Chief Jeff Carroll. The gunman shot a Secret Service agent in his protective vest and that agent was injured but in good condition, Trump told reporters Saturday night.
Trump, Vice President JD Vance and several top administration officials — including Blanche — were in attendance.
“Obviously, President Trump is a member of the administration, the head of it,” Blanche noted on Sunday. But he said any “exacting threat that may have been communicated beforehand” are still under investigation and not yet known.
Blanche said he expected formal charges, which he said would likely include assault of a federal officer and discharging a firearm during the assault of a federal officer, would be filed on Monday.
CBS News reporter Weijia Jiang, president of the White House Correspondents’ Association, called the shooting a “harrowing moment,” and thanked Secret Service and law enforcement personnel.
“Our dinner exists to celebrate the First Amendment and the hard daily work of the journalists who defend it. Last night, those journalists showed exactly the kind of calm and courage that work demands, jumping into reporting immediately after the incident unfolded,” Jiang said in a statement Sunday.
Jiang said late Saturday night that Trump “insists” the dinner be rescheduled within 30 days, but details of a new event have not been announced.
Erum Salam is a breaking news reporter for MS NOW, with a focus on how global events and foreign policy shape U.S. politics. She previously was a breaking news reporter for The Guardian.
WASHINGTON — As hundreds of journalists exchanged hugs, handshakes and laughter, while they and other attendees took their seats, White House Correspondents’ Association President Weijia Jiang welcomed everyone to this year’s dinner — Donald Trump’s first as president.
A military color guard played the national anthem. Like most events involving a U.S. president, every action was carefully choreographed. The atmosphere felt both routine and yet still historic. The sound of forks hitting plates clattered as Jiang gave her brief remarks, and people returned to conversation.
Suddenly, multiple loud bangs rang out from behind the closed doors of the oval underground ballroom in the Hilton Hotel. Journalists, friends, lawmakers, congressional staffers, and members of Trump’s Cabinet and other administration officials — dropped to the ground. Plates shattered, and chairs toppled over as people took cover under tablecloth-covered tables.
MS NOW reporter Julia Jester, who had reported on air from the red carpet leading up to the event, had briefly gone to an upper level of the hotel and returned to see her fellow journalists crouched on the floor.
“Just as someone said there was a shooter, an officer shouted to ‘get down and stay down,’” Jester recalled. “Not long after, a Secret Service agent ran into the area shouting, ‘Everyone out, this is now an active crime scene.’ Anyone who tried to run back to grab belongings was warned to leave or face arrest. They were not playing around.”
The evening is an annual celebration of the freedom of the press, one that typically includes a comedian’s performance and a joke-filled speech from the president along with the presentation of awards to journalists. Trump broke with tradition in his first term by not attending; his presence Saturday was a lightning rod for debate in the wake of his lawsuits against and threats to sue several media outlets over the past year.
Tension was expected to center on First Amendment speech protections. Instead, the night was derailed by gun violence, another growing threat to America’s democracy.
Outside the ballroom, a man — later identified as Cole Tomas Allen, 31, of Torrance, California — had attempted to run through a security checkpoint with two guns, along with multiple knives, according to Jeffery Carroll, D.C. interim police chief. Several MS NOW reporters, producers and executives were seated in the ballroom, a below-ground space with notoriously poor cellphone service.
“It wasn’t until we were all outside that I remembered how odd, and mildly concerning, I thought it was when no one screened me — or my bags — when I arrived on the terrace-level hours before [most attendees] to cover the red carpet,” Jester said. “The reality sunk in: as jarring as tonight was, it could have been far worse.”
Inside the room, Republican Rep. Marlin Stutzman of Indiana was seated near the center aisle. He estimated he was 50 to 75 feet from the back doors, when “all of a sudden,” he said, “we hear these large gunshots.”
MS NOW “Way Too Early” anchor and senior congressional reporter Ali Vitali heard shouts of “shots fired.”
“Someone behind me shouted ‘get down’ and I hit the floor, grabbing Symone Sanders next to me and telling her to get under the table,” she said. “I worried we couldn’t find cover because of how tightly packed the chairs and tables were. One of the servers also dropped down near us.”
“After a minute, I put my phone in the air and starting filming the dais, trying to understand where the president was,” Vitali said. Then she realized the server on the ground next to her was sobbing. “So, I used one hand in the air with my phone and the other to hold hers, and tell her it was going to be OK.”
Multiple Secret Service agents sprinted to the stage, where Trump, first lady Melania Trump, Vice President JD Vance and White House press secretary Karoline Leavitt were seated along with the board members of the White House Correspondents’ Association. As the guests on the dais crouched down and then were evacuated from their table, heavily-armed officers stood guard on the stage.
Quiet fell across the room, as uncertainty and fear spread among the guests. “I don’t recall any screaming. How much of the silence in that room was learned behavior?” Jonathan Capehart, co-anchor of “The Weekend,” reflected about the experience after years of mass shootings in America.
“It felt like a long moment,” said Stutzman.
In an interview with MS NOW’s Mychael Schnell shortly after the incident, Stutzman and Rep. Abe Hamadeh, R-Ariz., recounted following Jeanine Pirro, the U.S. attorney for the District of Columbia, and other officials down the center aisle as they were ushered out of the ballroom.
Hamadeh spotted Health and Human Services Secretary Robert F. Kennedy Jr. among those being rushed to safety. “When everybody was down there [on the floor]I’m just hearing people praying,” the Arizona congressman said. “People were obviously scared.”
White House reporter Jake Traylor, who covered the assassination attempt against Trump in Butler, Pennsylvania, during the 2024 campaign, also began filming on his cellphone. “We were a few feet away from FBI Director Kash Patel. I saw agents covering and protecting him moments after the commotion began,” he said.
“We actually left the exit where Ronald Reagan was shot just over 40 years ago,” MS NOW’s senior White House reporter Vaughn Hillyard told viewers on air as law enforcement officials asked him to move further back from the scene.
Hillyard recalled seeing House Majority Leader Steve Scalise, Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Defense Secretary Pete Hegseth being escorted out by their security details.
Kari Lake, who has overseen a gutting of the government-funding international news agency Voice of America into a pro-Trump media organization, expressed disdain for journalists in the room as she exited in an interview with Newsmax, a conservative streaming service, moments after the shooting.
“I saw so many people from all of these news outlets,” Lake said, accusing journalists of spreading falsehoods. “They’re part to blame of this,” she claimed moments after the shooting occurred and only as an investigation was just underway.
Back inside the ballroom, MS NOW’s Traylor reported that the president was safe and that he still intended to deliver a speech from the dinner, citing a White House official.
The president posted on social media that he wanted to “LET THE SHOW GO ON.” He praised law enforcement’s swift response and announced a press conference at the White House after it was determined that, following security guidance, he would leave the premises. Attendees were soon asked to leave the hotel as law enforcement investigated what had become a crime scene.
Trump posted a photo of a man handcuffed on the carpeted floor of the hotel and then shared video of a person charging through a security checkpoint. Shortly after, he addressed journalists — many still dressed in gowns and tuxedos — from the White House briefing room, saying the posts were part of an effort to create transparency as law enforcement worked to learn more about the suspect and possible motives.
“It’s always shocking when something like this happens,” Trump told reporters. “Melania was very cognizant, I think, of what happened. I think she knew immediately what happened. She was saying, ‘That’s a bad noise,’ and we were whisked away.”
MS NOW “The Weeknight” anchor Symone Sanders recalled on air riding a scooter up to the driveway of the Hilton, describing her ability to arrive that close to the entrance as “unusual” compared to previous dinners. She questioned the hotel’s overall security after attending numerous events where presidents and vice presidents were present.
“I have been with a protectee, then the vice president of the United States of America, when they have had to be evacuated. What happened tonight, in terms of protocol, from what I know, having experienced it myself, was not protocol,” Sanders said late Saturday, referring to her time as a senior adviser to former Vice President Kamala Harris.
Before the dinner began, MS NOW White House associate producer Emily Hung witnessed a handful of protestors enter the hotel, holding their signs against a WHCD-branded backdrop, before they were escorted out.
It is unclear whether Trump was the intended target, but, if so, this would be the third time a gunman has targeted Trump since 2024. In the Washington Hilton Saturday night were two officials in the presidential line of succession: the vice president and House Speaker Mike Johnson.
Unlike Lake, Trump praised the reaction of journalists in the room and what he saw of the event before it was derailed. “I told the representatives of the evening, and they did such a beautiful job with such a beautiful evening,” the president said. “They’re talking about free speech in our Constitution. That’s what it’s all about.”
As he addressed the reporters in the briefing room who sprang into action to tell the world what had happened, he also took questions and shared that he has “studied assassinations.”
“The people that make the biggest impact, they’re the ones that they go after,” Trump said. “I hate to say I’m honored by that, but I’ve done a lot. We’ve done a lot.”
Contributed Jake Traylor, Ali Vitali, Symone Sanders, Mychael Schnell, Ken Dilianian, Carol Leonnig.
Akayla Gardner is a White House correspondent for MS NOW.
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