Washington Update - May 25
President Donald Trump was riding high at the beginning of the week, denying Republican incumbents Senator Bill Cassidy and Representative Thomas Massie renomination. He then endorsed challenger Texas Attorney General Ken Paxton over incumbent Senator John Cornyn in Tuesday’s Republican U.S. Senate runoff.
The President’s confidence led to an announcement of a $1.776 billion “Anti-Weaponization Fund” to compensate “victims of lawfare and weaponization” by previous administrations. The next day, the Justice Department declared that the United States is “FOREVER BARRED and PRECLUDED” from auditing or prosecuting tax infractions by President Trump, his two eldest sons, or their family businesses.
Where the President saw absolute power, many in Congress saw overreach. Senate Republican leaders abandoned a scheduled vote on partisan legislation to fund immigration enforcement, fearing bipartisan amendments to eliminate funds for the weaponization account, the White House ballroom, the President’s arch at Arlington National Cemetery and overturning the audit exemption. The House joined the Senate by recessing until June in order to avoid a bipartisan vote restricting the President’s conduct of the war on Iran.
Eventually, congressional Republicans were going to prioritize their general election prospects over the President’s politically toxic priorities. It seems his overreach and passion for ending the careers of Republicans who crossed him accelerated the timing. It is to be seen whether the temperatures will warm or cool over the summer session.
At the same time, the House advanced bipartisan housing, veterans and banking legislation.
The outlook for the Iran war remains unclear as the United States and Iran seek advantage in peace negotiations. Military officials indicate military action in Cuba may come soon.
Federal Reserve Chair Kevin Warsh took office Friday amid persistent inflation that sent consumer sentiment to a record low and Treasury bond yields to their highest level since 2007, suggesting no interest rate cuts soon.
