The Dictatorship

Powell plans to stay on at Fed after his term as chair ends, citing legal actions by administration

Published

2 months ago

April 30, 2026

Powell plans to stay on at Fed after his term as chair ends, citing legal actions by administration

WASHINGTON (AP) — Jerome Powell said Wednesday he plans to remain on the board of the Federal Reserve after his term as chair ends next month “for a period of time, to be determined,” saying the “unprecedented” legal attacks by the Trump administration have put the independence of the nation’s central bank at risk.

“I worry these attacks are battering this institution and putting at risk the things that really matter to the public,” Powell said in remarks at a press conference after the Fed announced its decision to keep its benchmark interest rate unchanged.

Powell’s decision to stay — the first time a Fed chair will remain on the board as a governor since 1948 — denies President Donald Trump a chance to fill a seat on the central bank’s seven-member governing board with his own appointee. The Senate Banking Committee earlier approved Powell’s successor as chair, Trump appointee Kevin Warshon a party-line vote. Powell will continue as a Fed governor, possibly until January 2028. Warsh, if confirmed, will take a seat currently held by Stephen Miran, a previous Trump appointee, whose term ended in January.

Powell’s move could make it a bit harder for Warsh to engineer the rate cuts that Trump has demanded, and Warsh advocated for last year, economists say.

“It probably means it will take Warsh a little bit longer to build the consensus he is trying to build,” said David Seif, chief economist for developed markets at Nomura, an investment bank.

AP AUDIO: Powell plans to remain on Fed board, cites legal actions by Trump administration

AP Washington correspondent Sagar Meghani reports the Federal Reserve is again leaving its key interest rate unchanged — but chairman Jerome Powell made bigger news.

U.S. Attorney for the District of Columbia Jeanine Pirro said on X Friday that her office was ending its probe into the Fed’s extensive building renovations because the Fed’s inspector general would scrutinize them instead. But she added that her office could reopen the investigation if “the facts warrant doing so.” And Pirro had said previously that she would appeal a court ruling that threw out subpoenas her office had issued.

Powell said Wednesday he had been assured by the Justice Department that the appeal wouldn’t result in a reopening of the probe unless a separate investigation by the Fed’s inspector general finds evidence of criminal activity.

Apparently, that didn’t bring Powell the closure he felt is needed.

“I’m waiting for the investigation to be well and truly over with finality and transparency,” he said. “I’m waiting for that and I will leave when I think it appropriate to do so.”

The Fed Wednesday left its benchmark interest rate unchanged for the third straight meeting but signaled it could still cut rates in the coming months, moves that attracted the most dissents since October 1992. Three officials dissented in favor of removing the reference to a future cut, while a fourth, Miran, dissented in favor of an immediate rate cut.

The dissents underscore the level of division on the Fed’s 12-member rate-setting committee ahead of the end of Powell’s term as chair on May 15.

“Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” the Fed said in a statement after its two-day meeting. “Inflation is elevated, in part reflecting the recent increase in global energy prices.”

Trump responded to Powell’s decision late Wednesday on his social media website: “Jerome ‘Too Late’ Powell wants to stay at the Fed because he can’t get a job anywhere else — Nobody wants him,” Trump posted, using his nickname for the Fed chair.

Warsh has promised “regime change” at the central bank and may make sweeping changes to its economic models, communications strategies, and balance sheet. He has argued in favor of rate cuts, as Trump has demanded, but he will likely find it harder to implement them with inflation topping 3%, above the Fed’s target of 2%.

When asked if he believed Warsh would stand up to political pressure from Trump, Powell answered, “He testified very strongly at his hearingand I take him at his word.”

The three officials who dissented against hinting that the Fed may reduce borrowing costs were Beth Hammackpresident of the Federal Reserve Bank of Cleveland; Neel Kashkari, president of the Minneapolis Fed; and Lorie Logan, president of the Dallas Fed. The regional Fed bank presidents have historically been more likely to dissent, while the Washington-based governors more often support the chair.

The dissents could renew tension between the Trump administration and the bank presidents, who White House officials have previously criticized.

Beth Ann Bovino, chief economist at US Bank, said the dissents demonstrated that Fed policymakers are “very independent” and will likely be on hold for months longer. She has forecast a rate cut in December but now isn’t sure. Wall Street investors on average don’t expect a reduction until well into next year, according to futures pricing.

Powell’s decision to stay on could worsen tensions with the Trump administration and would create what some analysts refer to as a “two Popes” scenario, with a chair and former chair both on the Fed’s board. In that case, divisions among policymakers could increase, if some decided to follow Powell’s lead rather than Warsh’s.

Powell dismissed the notion that his staying on could cause dissension, saying, “My intention is not to interfere,” later adding that, “I’m not looking to be a high profile dissident or anything like that.”

Still, Powell said he remained concerned about the Fed’s independence from the White House, which he said is essential to its ability to set rates to benefit the public, rather than in response to political pressure. When the Fed raises or cuts its short-term rate, over time it affects the cost of mortgages, auto loans, and business borrowing.

Fed independence remains “at risk,” he said. “We’re having to resort to the courts to enforce our … ability to make monetary policy without political considerations. We’ve had to do that and we’ve been successful so far, but that’s not over, none of that has concluded yet.”

The unusual situation comes while the economic picture remains unusually murky, putting the Fed in a difficult spot. Inflation has jumped to 3.3%a two-year high, as the war has sharply raised gas prices. That makes it harder for the central bank to reduce rates. The Fed typically leaves rates unchanged, or even raises them, if inflation is worsening.

At the same time, hiring has ground almost to a halt, leaving those without jobs frustrated by the difficulty of finding new ones. Typically, the Fed cuts rates when the job market is weak, to spur more spending and job gains.

But layoffs also remain low, as employers appear to be following a “ low-hire, low-fire ” strategy. Many Fed officials have suggested that as long as the unemployment rate is low, the central bank doesn’t need to cut rates to spur more spending and hiring. Unemployment declined to 4.3% in March, from 4.4%.

___

AP Writer Alex Veiga contributed to this report.

The Dictatorship

Mitch McConnell’s office doesn’t want to talk about why he’s hospitalized

Published

5 hours ago

July 7, 2026

Blue Light Newsroom

Mitch McConnell’s office doesn’t want to talk about why he’s hospitalized

When it comes to members of Congress and medical transparency, it’s been an unfortunate year.

Republican Rep. Tom Kean Jr. of New Jersey was away from his duties for nearly four months for reasons he only recently disclosed; Democratic Rep. Frederica Wilson of Florida missed roughly a month of work for a medical issue she disclosed after the fact; and Republican Rep. Neal Dunn of Florida, who’s struggled with health concerns he didn’t share, has been out for roughly a month and reportedly told GOP leaders that he won’t be voting at all unless party leaders really need him.

And then there’s Republican Sen. Mitch McConnell of Kentucky. The New York Times reported:

Senator Mitch McConnell, Republican of Kentucky and the former majority leader, was hospitalized on June 14. Since then, his office has provided few updates about his condition.

The scant official statements have led to speculation around Washington and efforts to piece together information on what happened.

Questions about McConnell’s health are not altogether new. In recent years, the former GOP leader, who turned 84 in February, has been seen with unexplained bruises, has suffered unexplained falls and, in some especially unsettling moments, has frozen up and appeared unable to speak.

But as a related NBC News report noted, it’s now been 23 days since McConnell was admitted to the hospital, and if members of his team have information about why he was hospitalized or how he’s doing, they have kept those details from the public for reasons unknown.

The most recent statement from McConnell’s office, issued late last week, said the senator “appreciates the outpouring of support he’s receiving while he continues his recovery in the hospital” and that he “continues to improve, and is working closely with his staff on Kentucky and Senate matters while the Senate is out of session.”

That sounded vaguely encouraging, and people of goodwill can certainly hope he continues to recover from whatever it is that led to his hospitalization in the first place, but secrecy necessarily generates questions about why a prominent public official is not sharing basic details about his condition with his colleagues and constituents.

The Times’ report added, “Emergency responders the morning the Kentucky Republican was hospitalized reported performing CPR on an unconscious individual undergoing cardiac arrest at the senator’s Washington address, according to recordings of dispatcher calls that were widely reported by news outlets last week and obtained by The New York Times.”

The recordings did not specifically identify McConnell as the patient, and the senator’s office refused to say whether the calls were related to him.

As for the near future, in the event that McConnell’s Senate seat were to become vacant, state law in the Bluegrass State has changed a couple of times in recent years. In 2021, Kentucky’s Republican-led legislature approved a measure that would require Democratic Gov. Andy Beshear to fill a Senate vacancy by choosing one of three GOP options presented by state lawmakers.

In 2024, the Republican-led legislature changed state law again to remove the governor’s authority to fill a vacancy altogether: If Kentucky faces a Senate vacancy, the seat would remain empty until a statewide special election can be held.

Steve Benen is a producer for “The Rachel Maddow Show,” the editor of MaddowBlog and an MS NOW political contributor. He’s also the bestselling author of “Ministry of Truth: Democracy, Reality, and the Republicans’ War on the Recent Past.”

The Dictatorship

As the dam breaks on Graham Platner’s Senate candidacy, what happens next in Maine?

Published

5 hours ago

July 7, 2026

Blue Light Newsroom

As the dam breaks on Graham Platner’s Senate candidacy, what happens next in Maine?

When Democrats in Maine were introduced to Graham Platner last summer, the oyster farmer and combat veteran quickly started picking up the kind of enthusiastic grassroots support other Senate candidates can only dream of. It wasn’t long before his campaign events were drawing the crowds usually reserved for leaders such as Barack Obama and Bernie Sanders.

But a couple of months into his candidacy, as his record started to face greater scrutiny, controversies came to the fore. They were followed by more controversies and more still.

Most of his backers shrugged off the revelations, insisting that his near future was more important than his recent past. In early June, Platner held a private meeting with members of the Senate Democratic conference, who heard the candidate offer assurances that the worst was behind him. There was no reason to expect another round of damaging headlines, he said, just days before cruising to an impressive victory in Maine’s statewide primary on June 9.

As this week got underway, however, everything changed after Politico reported that a woman he previously dated had accused him of sexual assault. MS NOW reported:

Jenny Racicot, 41, of Maine said that Platner — whom she said she had casually dated on and off from 2019 to 2021 — entered her home one night late in 2021, uninvited and deeply intoxicated, and forced her to have sex despite her telling him to stop, according to the news outlet.

Racicot also detailed the allegations in a lengthy interview with BLN’s Jake Tapper, describing the accusations after they were first reported by Blue Light News.

For his part, Platner called the allegations “troubling, serious, and false” in a written statement, adding, “Any accusation of non-consensual behavior is categorically untrue.” The candidate nevertheless went on to post a video to social media in which he said, “[R]egardless of the inaccuracy of the reporting, but mindful of the political reality it will inflict, we are taking the time to reflect on the best path forward for the state that I love, the people I love, the movement I belong to and the goal of defeating [incumbent Republican Sen.] Susan Collins.”

Democratic officials cannot force him to drop out of the race. Platner won his primary race fair and square, and if he decides to keep running despite the scandals, there is nothing anyone can do about it.

What the party can do, however, is pressure Platner to exit and make clear that his support in Democratic politics has evaporated. That is precisely what happened on Monday afternoon, as the state and national party completely abandoned Platner and urged him to stand down. The pushback was not limited to those who were already skeptical of his candidacy: Several prominent Democrats who had endorsed Platner reversed course after seeing the Blue Light News article, withdrew their backing and called on him to quit.

We’ll learn soon enough whether the candidate reads the writing on the wall, but in the meantime, there are two overarching questions to keep in mind: (1) How would Platner be replaced, and (2) who would Maine Democrats replace him with if he bows out?

As to the former, there is a limited window of opportunity. Under Maine lawDemocratic officials would have the power to choose a replacement candidate, but only if he withdraws before the second Monday in July. At that point, Maine’s secretary of state would declare a vacancy and state party officials would choose a new nominee before a July 27 deadline.

Platner, in other words, has a week to make up his mind.

As to the latter question, quiet whispers about possible Platner alternatives have lingered for weeks, but that conversation grew much louder on Monday. The jockeying to replace Platner began soon after the embattled candidate said he was reflecting on the race, with much of the focus turning to Democrats who ran in Maine’s recent gubernatorial primary, only to come up short against former state House Speaker Hannah Pingree. That list includes Maine Secretary of State Shenna Bellows, former state Senate President Troy Jackson and Nirav Shah, former director of the Maine Center for Disease Control and Prevention.

There’s been related scuttlebutt about Jordan Wood, who recently lost a competitive U.S. House primary race in the northern part of Maine; Dan Kleban, who briefly ran for the Senate before exiting last year; and former state House Speaker Sara Gideon, who lost to Collins six years ago but who still has a fair amount of money left in her campaign account.

Outgoing Gov. Janet Mills, who suspended her own Senate campaign in late April, appears unlikely to gain serious consideration. Watch this space.

The Dictatorship

Trump’s attacks on Democrats as ‘communists’ only show he’s out of touch

Published

5 hours ago

July 7, 2026

Blue Light Newsroom

Christmas. 7, 2026, 6:00 AM EDT

President Donald Trump has a new favorite midterm strategy: painting the Democratic Party as a band of godless communists. It’s not going to pan out the way he wants.

During his speech Friday at Mount Rushmoreon the eve of Independence Day, Trump warned of a “resurgence of the communist menace in our land, including from newcomers to our country who embrace ideas totally opposed to our way of life and our great success.” The line was an unsubtle reference to the election of New York Mayor Zohran Mamdani in 2025 and successful left-wing candidates in recent House primaries, including a Mamdani-backed trio that won contests in New York City.

Trump described the growth of the leftists in American politics as an apocalyptic development: “These are not mere political disagreements like differences over taxes or regulations. Communism is a mortal threat to American liberty. It is the greatest threat to our country, including World War I, World War II, Pearl Harbor or even 9/11,” Trump huffed. He added, “Communism is the exact opposite of life, liberty and the pursuit of happiness. It’s death, tyranny and the pursuit of evil.”

The word “communist” is not the bogeyman it was during the 20th century or even the first decade of the 21st century.

During his remarks, Trump mentioned the term “communism” or “communist” 15 times. He invoked communism multiple times the following day in his July 4th speech. And the White House posted on X on Independence Day: “You can be a communist or you can be a patriot. You cannot be both.” Right-wing influencers and Republicans have also begun to use the term to attack the left more often in recent weeks. This effort is concerted, desperate and likely doomed.

It’s standard practice for a political party to use the opposition’s most ideologically radical members to paint the entire party with the same brush. Sometimes it can be effective as a messaging strategy. But trying to portray Democrats specifically as communist seems like a dead end.

The word “communist” is not the bogeyman it was during the 20th century or even the first decade of the 21st century. The Cold War has long been over. Millennials and Gen Z Americans either were not alive or were not politically conscious at a time when communism was seen in popular culture as a serious national security and economic threat. To them, communism is a historical term, not a haunting specter. The Communist Party U.S.A. exists, but it is a tiny and politically irrelevant organization. Trump, perpetually stuck in the 1980slikely overestimates the power of “communist” as a slur.

Trump’s “communist” agenda is also inaccurate in a way that a good chunk of the public is likely to understand. He falsely claims that democratic socialists are no different from communists. The most prominent communist projects of the 20th century in the Soviet Union and China involved authoritarian political organizations and centrally planned economies, and were known for massive human rights abuses and dysfunction in distributing resources. By contrast, democratic socialists believe in democratic political organization and reject central planning. (This is a broad delineation; there are nuances that extend beyond the scope of this brief article.)

American democratic socialists today are not proposing extreme upheavals of society and economy, but modest social democratic reforms. These ideas, like publicly funded healthcare and childcare, already exist and are proven to be wildly successful in other affluent democracies. Sen. Bernie Sanders, I-Vt. — the most prominent living democratic socialist in America and consistently one of the most popular politicians in the country — isn’t associated with rationing food, but with taxing billionaires and demanding the popular idea of Medicare for All.

Finally, Trump’s panning of the democratic socialist insurgency as an assault on capitalism implicitly suggests that capitalism is worth defending wholesale. That puts him in the kind of position that doesn’t suit him: defending the status quo. Meanwhile, polls in recent years have indicated a declining approval of capitalism, and slowly rising approval of — or reduced negative feelings toward — socialism. Realistically speaking, not everyone who has a favorable opinion of socialism would not be able to define what it is. But they view it broadly as a program of social equality in a deeply unequal society, not as a portal to gulags.

Of course, it may very well be the case that most of the midterm electorate remains skeptical that the small democratic socialist bloc represents the future of the Democratic Party. The movement gets a lot of attention, but that’s not the same as power. What voters will know is that Trump is in power and has done nothing for the U.S. economy except make it more comfortable for the ultrarich and more expensive for everyone else. And no appeals to 20th century bogeymans can change that.

Zeeshan Aleem is a writer and editor for MS NOW. He primarily writes about politics and foreign policy.