Good Wednesday evening. In this edition: Fed cuts interest rates amid labor market concerns; Former CDC director says RFK Jr. wanted her to rubber-stamp vaccine policies; and Trump receives a royal welcome in the U.K.
Plus, Patel, nominees, Waltz, censure, Kimmel and Commanders.
Interest Rates
The Federal Reserve cut interest rates by a quarter point and signaled two more cuts could follow this year amid rising concerns about the strength of the labor market.
The move, which marks the first time since December the central bank has eased monetary policy, puts the target range for the federal funds rates at 4.00–4.25%.
Inflation ticked up over the summer and many economists believe the price hikes could be exacerbated by President Trump's tariff policies.
At the same time, the labor market has showed signs of weakening, with job growth all but grinding to a halt over the past three months.
Federal Reserve Chair Jerome Powell said the two trends create a "challenging situation" for the Fed, which is tasked with the dual mandate of promoting maximum employment and price stability.
"When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate," he said at a press conference.
"With downside risks to unemployment having increased, the balance of risks has shifted."
Mr. Powell portrayed the decision to cut rates as more of a "risk management" move rather than a reaction to an economy already experiencing a downturn.
He noted that the Fed's updated projections show U.S. growth running slightly higher through 2027 than the forecasts made three months ago.
Stephen Miran, who was sworn in just before the two-day policy meeting, was the lone dissent among Federal Open Market Committee (FOMC) participants, instead favoring a 50-basis-point reduction.
Mr. Miran is controversially remaining a White House employee for the duration of his stint at the Fed and has echoed President Trump's criticisms of the central bank for keeping rates at an elevated level.
Fed Governors Michelle Bowman and Christopher Waller, who had dissented at the Fed's prior meeting in favor of a quarter-point move, were aligned with the majority this time.
Lisa Cook also participated in the meeting after a federal appeals court earlier this week blocked the president from firing her as a Fed governor.
Central bankers penciled in another half-point reduction in interest rates this year, which would bring the overnight lending rate to 3.5–3.75%, lower than they estimated in June.
There are two more FOMC meetings this year, scheduled for October and December.
Susan Monarez told senators she was fired as CDC director because she refused to follow demands from Health and Human Services Secretary Robert F. Kennedy Jr. to pre-approve vaccine recommendations and purge career scientists.
Her highly anticipated testimony before the Senate Health Committee came weeks after she was ousted from the world's premier health agency after less than a month on the job.
Ms. Monarez said she was directed to dismiss top vaccine officials "without cause" and commit to approving every recommendation "regardless of the scientific evidence" from the CDC's vaccine advisory panel, which Secretary Kennedy had gutted and filled with vaccine skeptics.
"He said if I was unwilling to do both, I should resign," she told senators. "I responded that I could not pre-approve recommendations without reviewing the evidence, and I had no basis to fire scientific experts."
Ms. Monarez also rejected Secretary Kennedy's claims that she was dismissed because she wasn't "trustworthy" and was "maliciously" undermining the president's agenda.
"Since my removal, several explanations have been offered … none of those reflect what actually happened," she said. "I was fired for holding the line on scientific integrity."
Dr. Debra Houry, who resigned as the CDC's chief medical officer shortly after Ms. Monarez's firing, also testified before the panel, saying she could no longer work there because CDC leaders had been "reduced to rubber stamps."
"Secretary Kennedy censored CDC science, politicized its processes and stripped leaders of independence. I could not in good conscience remain under those conditions," she said.
Dr. Houry warned that Secretary Kennedy's actions would harm Americans, accusing him of spreading misinformation and promoting unproven treatments.
"Due to the secretary's actions, our nation is on track to see drastic increases in preventable diseases and declines in health," she said. "Trust and transparency have been broken. Here again, the problem is not too much science, but too little."
President Trump was treated to a royal welcome, filled with all the pomp and pageantry, during his historic second state visit to the United Kingdom.
The visit made him the only American leader to have been granted a second state visit in the U.K., following his 2019 visit during his first term.
The president and first lady Melania Trumparrived at Windsor Castle in a horse-drawn carriage, accompanied by King Charles III and Queen Camilla.
The two heads of state then inspected the troops and watched a military flyover before continuing their meetings behind the 11th-century castle walls.
President Trump also laid a wreath at Queen Elizabeth II's tomb at St. George's Chapel on the castle grounds.
In the evening, the leaders gathered around a long banquet table in St. George's Hall where they offered toasts celebrating the "special relationship" between the two counties.
They were joined by 160 guests that included some of the top figures in technology, finance, media and government, including media mogul Rupert Murdoch and Apple CEO Tim Cook.
President Trump commended the king for his environmental advocacy and charitable works, while calling the visit to Windsor a "singular privilege."
"This is truly one of the highest honors of my life, such respect for you and such respect for your country," he said.
"Together, we must defend the exceptional heritage that makes us who we are, and we must continue to stand for the values and the people of the English-speaking world."
King Charles praised the president's efforts to try to find solutions to conflicts around the globe and heralded the tight bond between the two countries.
"I have always admired the ingenuity of the American people and the principles of freedom, which your great democracy has represented since its inception," he said.
With America's 250th birthday on the horizon, the king mused about what their predecessors would think of the countries' ties today.
"We celebrate a relationship between our two countries that surely neither Washington nor King George III could possibly have imagined. The ocean may still divide us, but in so many other ways we are now the closest of kin," he said.
On Thursday, the president is expected to sign a handful of deals with British Prime Minister Keir Starmer and hold a joint news conference.
FBI Director Kash Patelclashed with Democrats again in another testy hearing on the Hill, this time before the House Oversight Committee. In one particularly heated exchange, Rep. Eric Swalwell (D-CA) ripped the director over his handling of the Epstein files, arguing that the courts had called "bullshit" on his claims that his hands were tied in what he could publicly release. "I'm going to borrow your terminology and call bullshit on your entire career in Congress," Mr. Patel sniped back.
The Senateadvanced a slate of 48 nominees under the new confirmation rules that were put in place last week through the "nuclear option," teeing up a final vote for Thursday. Under the new precedent, Senate Republicans will be able to more quickly get through the backlog of some 150 low-level civilian nominees by confirming them in groups.
The Senate Foreign Relations Committeevoted11–10 to reapprove Mike Waltz's nomination to be the next U.S. ambassador to the United Nations. The nomination was returned to committee so it could be fast-tracked under the new Senate confirmation rules. Ranking Member Jeanne Shaheen (D-NH) voted in favor while Sen. Rand Paul (R-KY) voted against, as they did the first time around.
The Housevoted214–213 to reject Rep. Nancy Mace's (R-SC) resolution to censure Rep. Ilhan Omar (D-MN) for her recent comments about the assassination of conservative activist Charlie Kirk. Four Republicans joined all Democrats in tabling the measure: Reps. Mike Flood (NE), Jeff Hurd (CO), Tom McClintock (CA) and Cory Mills (FL).
ABCannounced it was "indefinitely" pulling Jimmy Kimmel's late-night show after criticism of comments he made Monday about the motives of the man accused of killing Charlie Kirk. The move came shortly after FCC Chair Brendan Carr (R) suggested that the network's license was at risk.
The DC Councilvoted11–2 to approve a $3.7 billion deal for the Washington Commanders to return to the nation's capital and build a new stadium where the old RFK Stadium is being demolished. It was the second and final vote, capping a yearslong political saga that involved Congress and President Trump and marked a major victory for DC Mayor Muriel Bowser (D).
For your radar…
DC Mayor Muriel Bowser (D) and Attorney General Brian Schwalb (D) testify Thursday before the House Oversight Committee on crime and safety in the nation's capital. Watch LIVE on C-SPAN3 at 10am ET.
%20as%20of%207-11-25.jpg?upscale=true&width=1040&upscale=true&name=Hubspot%20Newsletter%20AffiliateBanner%20(600x488)%20as%20of%207-11-25.jpg)
