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The Dictatorship

Trump’s ‘A+++++’ economy collides with reality in city critical to midterms…

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Trump’s ‘A+++++’ economy collides with reality in city critical to midterms…

ALLENTOWN, Pa. (AP) — When Idalia Bisbal moved to this Pennsylvania city synonymous with America’s working class, she hoped for a cheaper, easier life than the one she was leaving behind in her hometown of New York City.

About three years later, she is deeply disappointed.

“It’s worse than ever,” the 67-year-old retiree, who relies on Social Security, said when asked about the economy. “The prices are high. Everything is going up. You can’t afford food because you can’t afford rent. Utilities are too high. Gas is too expensive. Everything is too expensive.”

Bisbal was sipping an afternoon coffee at the Hamilton Family Restaurant not long after Vice President JD Vance rallied Republicans in a nearby suburb. In the Trump administration’s second high-profile trip to Pennsylvania in a week, Vance acknowledged the affordability crisisblamed it on the Biden administration and insisted better times were ahead. He later served food to men experiencing homelessness in Allentown.

The visit, on top of several recent speeches from President Donald Trumpreflects an increasingly urgent White House effort to respond to the economic anxiety that is gripping both parties. Those worries are a vulnerability for Republicans in competitive congressional districts like the one that includes Allentown, which could decide control of the U.S. House in next year’s midterms.

But in confronting the challenge, there are risks of appearing out of touch.

Only 31% of U.S. adults now approve of how Trump is handling the economy, down from 40% in March, according to a poll from The Associated Press-NORC Center for Public Affairs Research. Yet Trump has called affordability concerns a “ hoax ” and gave the economy under his administration a grade of “A+++++.” Vance reiterated that assessment during his rally, prompting Bisbal to scoff.

“In his world,” Bisbal, a self-described “straight-up Democrat,” responded. “In the rich man’s world. In our world, trust me, it’s not an ‘A.’ To me, it’s an ‘F,’ ‘F,’ ‘F,’ ‘F,’ ‘F,’ ‘F.’”

Agreement that prices are too high

With a population of roughly 125,000 people, Allentown anchors the Lehigh Valley, which is Pennsylvania’s third-largest metro area. In a dozen interviews this week with local officials, business leaders and residents of both parties, there was agreement on one thing: Prices are too high. Some pointed to gas prices while others said they felt the shock more at the grocery store or in their cost of health care or housing.

Few shared Trump’s unbridled boosterism about the economy.

Tony Iannelli, the president and CEO of the Greater Lehigh Valley Chamber of Commerce, called Trump’s grade a “stretch,” saying “we have a strong economy but I think it’s not yet gone to the next stage of what I would call robust.”

Tom Groves, who started a health and benefits consulting firm more than two decades ago, said the economy was at a “B+” as he blamed the Affordable Care Act, widely known as “Obamacare,” for contributing to higher health costs and he noted stock and labor market volatility. Joe Vichot, the chairman of the Lehigh County Republican Committee, referred to Trump’s grade as a “colloquialism.”

Far removed from Washington’s political theater, there was little consensus on who was responsible for the high prices or what should be done about it. There was, however, an acute sense of exhaustion at the seemingly endless political combat.

Pat Gallagher was finishing lunch a few booths down from Bisbal as she recalled meeting her late husband when they both worked at Bethlehem Steel, the manufacturing giant that closed in 2003. Now retired, she, too, relies on Social Security benefits and lives with her daughter, which helps keep costs down. She said she noticed the rising price of groceries and was becoming exasperated with the political climate.

“I get so frustrated with hearing about the politics,” she said.

Allentown has a front-row seat to politics

That feeling is understandable in a place that often gets a front-row seat to the national debate, whether it wants the view or not. Singer Billy Joel’s 1982 song “Allentown” helped elevate the city into the national consciousness, articulating simultaneous feelings of disillusionment and hope as factories shuttered.

In the decades since, Pennsylvania has become a must-win state in presidential politics and the backdrop for innumerable visits from candidates and the media. Trump and his Democratic rival in 2024, Kamala Harrismade several campaign swings through Allentown, with the then-vice president visiting the city on the eve of the election.

“Every race here, all the time,” Allentown’s mayor, Democrat Matt Tuerk, recalled of the frenzied race last year.

The pace of those visits — and the attention they garnered — has not faded from many minds. Some businesses and residents declined to talk this week when approached with questions about the economy or politics, recalling blowback from speaking in the past.

But as attention shifts to next year’s midterms, Allentown cannot escape its place as a political battleground.

Trump’s win last year helped lift other Republicans, like U.S. Rep. Ryan Mackenzie, to victory. Mackenzie, who unseated a three-term Democrat, is now one of the most vulnerable Republicans in Congress. To win again, he must turn out the Republicans who voted in 2024 — many of whom were likely more energized by Trump’s candidacy — while appealing to independents.

Mackenzie’s balancing act was on display when he spoke to the party faithful on Tuesday, bemoaning the “failures of Bidenomics” before Vance took the stage at the rally. A day later, the congressman was back in Washington, where he joined three other House Republicans to rebel against the party’s leadership and force a vote on extending health care subsidies that expire at the end of the year.

Vichot, the local GOP chairman, called Mackenzie an “underdog” in his reelection bid and said the health care move was a signal to voters that he is “compassionate for the people who need those services.”

A swing to Trump in 2024

Lehigh County, home to Allentown and the most populous county in the congressional district, swung toward Trump last year. Harris’ nearly 2.7 percentage point win in the county was the tightest margin for a Democratic presidential candidate since 2004. But Democrats are feeling confident after a strong performance in this fall’s elections when they handily won a race for county executive.

Retaking the congressional seat is now a top priority for Democrats. Gov. Josh Shapirowho faces reelection next year and is a potential presidential contender in 2028, endorsed firefighter union head Bob Brooks this week for the May primary.

Democrats are just a few seats shy of regaining the House majority and the first midterm after a presidential election historically favors the party that’s out of power. If the focus remains on the economy, Democrats are happy.

The Uline supplies distribution factory where Vance spoke, owned by a family that has made large donations to GOP causes, is a few miles from the Mack Trucks facility where staff was cut by about 200 employees this year. The company said that decision was driven in part by tariffs imposed by Trump. Shapiro eagerly pointed that out in responding to Vance’s visit.

But the image of Allentown as a purely manufacturing town is outdated. The downtown core is dotted by row homes, trendy hotels and a modern arena that is home to the Lehigh Valley Phantoms hockey team and hosts concerts by major artists. In recent years, Latinos have become a majority of the city’s population, driven by gains in the Puerto Rican, Mexican and Dominican communities.

“This is a place of rapid change,” said Tuerk, the city’s first Latino mayor. “It’s constantly changing and I think over the next three years until that next presidential election, we’re going to see a lot more change. It’s going to be an interesting ride.”

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The Dictatorship

Trump threatens to fire Powell if the Fed Chair remains with central bank after his term ends

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Trump threatens to fire Powell if the Fed Chair remains with central bank after his term ends

WASHINGTON (AP) — Federal prosecutors made an unannounced visit this week to a construction site at Federal Reserve headquarters that is the focus of an investigation into a $2.5 billion renovation projectaccording to two people familiar with the visit.

Two prosecutors and an investigator from U.S. Attorney Jeanine Pirro’s office were turned away on Tuesday by a building contractor and referred to Fed attorneys, one of the people said. The two people familiar with the visit spoke on condition of anonymity because they weren’t authorized to publicly discuss an ongoing investigation.

The visit underscores that the Trump administration is not backing down from its investigation of the Fed and its chair, Jerome Powell, even though the probe has delayed the confirmation of a new chair nominated by President Donald Trump. The investigation is focused on cost overruns and brief testimony about the project last summer by Powell. Trump confirmed in an interview that aired Wednesday on Fox Business that he wants to continue the probe.

Last month, during a closed-door hearing before a federal judge, a top deputy from Pirro’s office conceded that they hadn’t found any evidence of a crime in their investigation of the headquarters project.

Robert Hur, an attorney for the Federal Reserve board of governors, sent an email to Pirro’s prosecutors about their visit and their request for a “tour” to “check on progress” at the construction site. Hur’s email, which The Associated Press has viewed, noted that U.S. District Judge James Boasberg concluded that their interest in the Federal Reserve’s renovation project was “pretextual.”

AP AUDIO: Prosecutors sought access to Federal Reserve building as Trump threatens to fire Powell

AP Washington correspondent Sagar Meghani reports on more drama surrounding a federal probe of a massive construction project at the Federal Reserve’s headquarters.

“Should you wish to challenge that finding, the courts provide an avenue for you; it is not appropriate for you to try to circumvent it,” Hur wrote.

Republican Tillis is key vote

Sen. Thom Tillis, a North Carolina Republican who is a key member of the Senate Banking Committee, has vowed to vote against Kevin WarshTrump’s nominee to replace Powell as Fed chair, until the investigation is dropped. With the committee closely divided on partisan lines, Tillis’ opposition is enough to block Warsh from receiving the committee’s approval.

Tillis on Wednesday criticized the investigation as “bogus, ill-timed, ill-informed” and repeated that seven Republican members of the banking panel have said they do not believe Powell committed a crime when he testified last June.

Tillis also said there aren’t enough votes on the committee or in the broader Senate to do an end-run around the committee and get Warsh confirmed some other way.

“There really is no path,” he told reporters, adding that Pirro and her aides were “asleep at the switch” because the investigation has essentially delayed Powell’s departure from the Fed, despite Trump’s obsessive criticism of the Fed chair. Powell has now said he won’t leave until the investigation is resolved.

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Tillis suggested Pirro blindsided the White House with her investigation. “They should have consulted with the White House, because I’m sure if they would have, (the White House) would have said, ‘no, we can wait,’” until Powell steps down.

But Kevin Hassett, the Trump administration’s top economist, said Wednesday that the Justice Department got involved because “the president wanted to investigate the cost overrun,” Axios reported.

The Banking panel said Tuesday that it will hold a hearing on Warsh’s nomination April 21. Powell’s term as Fed chair ends May 15, but Powell said last month he would remain as chair until a replacement is named.

Powell is serving a separate term as a member of the Fed’s governing board that lasts until January 2028. Chairs typically leave the board when their terms as chair end, but they can remain on the board if they choose. Powell has said he won’t leave until the investigation is resolved. If he remains it would deny Trump the opportunity to appoint someone else to the seven-member board.

Late Tuesday Tillis posted a link on social media to The Wall Street Journal’s article on the visit below an image of the Three Stooges and wrote, “The U.S. Attorney’s Office for D.C. at the crime scene.”

Investigation centers on building renovations

The investigation centers on an appearance by Powell before the Banking Committee last June, when he was asked about cost overruns on the renovations. The most recent estimates from the Fed suggest the current estimated cost of $2.5 billion is about $600 million higher than a 2022 estimate of $1.9 billion.

“It is probably corrupt, but what it really is, is incompetent,” Trump said. “Don’t you think we have to find out what happened there?”

The president’s support for the investigation threatens a timeframe set out by Sen. Tim Scott, a South Carolina Republican who chairs the Banking Committee. Scott said Tuesday on Fox Business that he believed the investigation would be “wrapped up in the next few weeks,” allowing Warsh to be confirmed soon after.

Threat to fire Powell

News of the unannounced visit by prosecutors comes as Trump has again threatened to fire Powell, if the Federal Reserve Chair decides to stay on the central bank’s governing board after his term as chair expires next month.

“Well then I’ll have to fire him, OK?” Trump said.

Trump has for months wanted to remove Powell, saying he has been too slow in orchestrating interest rate cuts that would give the U.S. economy a quick boost. Powell has said the investigation is a pretext to undermine the Fed’s independence to set rates.

Sen. Josh Hawley, a Missouri Republican, said Trump can only fire Powell “for cause,” meaning some kind of misconduct, “so that’s a pretty tall order.”

Supreme Court weighing another Trump removal

Trump’s threat to fire Powell comes as the Supreme Court is weighing the president’s effort to remove another central bank governor, Lisa Cook. Lower courts have so far allowed Cook to remain in her job while her legal challenge to the firing continues. The Supreme Court also seemed likely to keep her on the Fed when the court heard arguments in January. A decision could come any time.

The issue in Cook’s case is whether allegations of mortgage fraud, which she has denied, is a sufficient reason to fire her or a mere pretext masking Trump’s desire to exert more control over U.S. interest rate policy.

The Supreme Court has allowed the firings of the heads of other governmental agencies at the president’s discretion, with no claim that they did anything wrong, while also signaling that it is approaching the independence of the nation’s central bank more cautiouslycalling the Fed “a uniquely structured, quasi-private entity.”

___

AP Writers Seung Min Kim, Mark Sherman, Paul Wiseman, Alanna Durkin Richer, and video journalist Nathan Ellgren contributed to this report.

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The Dictatorship

The Latest: US blockade of Iranian ports ‘fully implemented’ as Trump says war is near end

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The Latest: US blockade of Iranian ports ‘fully implemented’ as Trump says war is near end

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The Dictatorship

It’s Tulsi Gabbard’s turn to target Trump’s enemies

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President Donald Trump was impeached in December 2019, charged by the House of Representatives with abusing his office to gain leverage over Joe Biden in the upcoming presidential election. This week, Director of National Intelligence Tulsi Gabbard rebooted that scandal with the release of a handful of newly declassified documents that question the beginning of the impeachment investigation — in hopes of discrediting everything that followed.

MS NOW confirmed Wednesday that Gabbard’s office has sent criminal referrals to the Justice Department for the whistleblower whose concern over a phone call between Trump and Ukrainian president Volodymyr Zelenskyy launched the impeachment inquiry and the former inspector general who fielded their complaint. The referrals were first reported by Fox News.

Gabbard’s new disclosures mirror a well-worn playbook used by Trump’s loyalists to investigate his investigators. But in every instance, including this latest endeavor, the evidence gathered of wrongdoing on Trump’s part has far outweighed proof of misconduct from his investigators.

In every instance, the evidence gathered of wrongdoing on Trump’s part has far outweighed proof of misconduct from his investigators.

In Gabbard’s telling, as she posted on Xthe process was an inherently corrupt conspiracy where “deep state actors within the Intelligence Community concocted a false narrative that Congress used to usurp the will of the American people.” Michael Atkinson, former inspector general for the Intelligence Community, is painted in a press release accompanying the new materials as a rogue actor who spun a secondhand tale into an attempted coup.

Newly-declassified records expose how deep state actors within the Intelligence Community concocted a false narrative that Congress used to usurp the will of the American people and impeach duly-elected President @realDonaldTrump in 2019.

Today, we reveal the truth 👇… pic.twitter.com/oLXW5nqi2n

— DNI Tulsi Gabbard (@DNIGabbard) April 13, 2026

The materials posted Monday do provide an interesting window into the chain of events eventually leading to Trump’s first impeachment. Among them are official records from the preliminary 14-day investigation Atkinson undertook to determine that the whistleblower’s initial complaint was of “urgent concern” and needed to be reported to Congress. Also included are transcripts from Atkinson’s two closed-door interviews with the House Permanent Select Committee on Intelligence, one before the White House released the transcript of the Zelenskyy call and one after the impeachment inquiry was underway.

But despite Gabbard’s breathless claims of a “coordinated effort … to manufacture a conspiracy,” nothing among the materials contradicts anything uncovered later. If anything, the initial interviews with the whistleblower, conducted in late August 2019, line up neatly with the fuller story that would be revealed over the coming weeks in the press and during the House’s impeachment inquiry. Both the whistleblower and a corroborating witness were extremely forthcoming about exactly what they did and did not know about the call, and why they were deeply concerned by Trump’s repeating conspiracy theories and pressing Zelenskyy to resume an investigation into Biden.

Gabbard’s cries of “politicization” from Atkinson are likewise overblown. Her claim is based on a section in the IG’s interview process where subjects were asked if they have anything in their background that might reveal any biases that could be used against them. The responses given suggest a certain hesitation to speak out for fear their words would be spun into right-wing attacks but was overridden by the necessity to speak out. Atkinson transparently mentioned in a letter to then-acting DNI Joseph Maguire that there was an “indicia of an arguable political bias” from the complainant, but that it didn’t alter his determination that their information was credible.

Maguire initially prevented Atkinson from providing the complaint to Congress, claiming that the Justice Department ruled it was outside of the IG’s remit. Atkinson disagreed and told lawmakers an “urgent concern” existed, as he believed the law required him, but did not provide the whistleblower’s complaint. Instead, it was only after media reports of the investigation and the White House’s subsequent release of the so-called perfect call with Zelenskyy that Atkinson was able to speak to Congress about the complaint directly.

All of this, in Gabbard’s telling, amounted to a “weaponization” of the process.

Several things stand out at this point. First is how ill-equipped Gabbard is to be leading America’s intelligence community. Her emphasis on how the first people to come forward about Trump’s scheme didn’t have firsthand knowledge of the call would be laughable if it weren’t so inept. It is literally the job of the intelligence community to consume partial information as it is received and work that raw data into a complete analysis. What Gabbard is essentially saying is that someone who only saw a single piece of the puzzle, at first, cannot be trusted to put together a picture in their head once more pieces have come together.

It is literally the job of the intelligence community to consume partial information as it is received and work that raw data into a complete analysis.

Second is how blatantly she has copied the failed formula of the GOP’s efforts to discredit the Russia investigation during Trump’s first term. For years now, through numerous investigations from the House and an independent counsel alike, Republicans have tried to claim wrongdoing from the FBI and other supposed “deep state” figures when first investigating hints of Russian interference in the 2016 election. But John Durham’s four-year-long probe came up empty, and despite Trump’s demands for revenge, there have been no criminal charges filed against anyone involved in the case.

Finally, it’s worth remembering Gabbard’s position when she was serving as a U.S. representative from Hawaii during Trump’s first impeachment. By the time the House voted on the articles of impeachment, she was already running a longshot bid for president. Accordingly, she was attempting to position herself as not beholden to the left wing, but still a viable candidate to be the Democratic nominee.

Gabbard was the only Democrat in the House to vote “present” on the articles. But she made clear in a statement afterward that she believed “President Trump is guilty of wrongdoing.” Her vote, or nonvote rather, was cast because, in her view, “removal of a sitting President must not be the culmination of a partisan process, fueled by tribal animosities that have so gravely divided our country.” The centrism by way of cowardice branding that brought her to prominence has fully given way — she now simply yields to the rightward pressures she finds herself under as part of Trump’s cabinet.

In his first interview with the House Permanent Select Committee on IntelligenceAtkinson described himself as a first responder, one who may not have had the full picture, but who had heard a fire alarm ringing and chose to act. “I don’t know whether it is just smoke, don’t know whether it is a small fire,” he told lawmakers as he refused to reveal what he’d learned from his preliminary findings. “All I know is that there was a time when … another first responder was not getting information about an alleged fire.”

Atkinson did what he thought was right and in accordance with the law by telling Congress that a complaint existed. The whistleblower did the same, despite the potential reprisals they’d face from a vengeful White House. Gabbard is now targeting them specifically for doing so, even as it is her job to be the early warning system against the nation’s greatest threats. It’s disturbing then to think what alarm bells she would prefer to silence, what risks she would take with America’s safety, rather than risk upsetting Trump.

Hayes Brown is a writer and editor for MS NOW. He focuses on politics and policymaking at the federal level, including Congress and the White House.

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