Three Feuds to Watch
Author: Greg Valliere
January 30, 2025
A PLANE CRASH puts everything into perspective, and instantly makes us pause. But the show must go on, so here’s the piece that we were working on when we heard the news from Reagan National Airport . . .
A ROCKY FIRST HALF: The inaugural glow is fading, as three major feuds grip Washington:
1. DONALD TRUMP VS. THE FED: As we anticipated, the president couldn’t resist a shot at Jerome Powell and the Fed because they failed to cut interest rates yesterday. Trump said the following:
“Because Jay Powell and the Fed failed to stop the problem they created with Inflation, I will do it by unleashing American Energy production, slashing Regulation, rebalancing International Trade, and reigniting American Manufacturing,” he wrote.
THE PRESIDENT’S post suggests that he intends to continue his criticism of Powell on social media, which became a regular feature during his first term, although he did not directly press the central bank to take action on rates. But trust us, that’s coming.
2. REPUBLICANS VS. REPUBLICANS: This has erupted in the past 24 hours, with hard-line conservatives vowing to resist any budget deal (due on March 14) that doesn’t contain enormous spending reductions.
THIS WILL BECOME THE BIGGEST CHALLENGE House Speaker Mike Johnson has faced, He doesn’t have the votes to pass a bill and the Democrats won’t bail him out again, as they did in 2024. There’s at least a 50% chance of a government shutdown by mid-March.
3. DEMOCRATS VS. DEMOCRATS: With no stars and no agenda, the Democrats have been adrift. But they suddenly have showed some signs of life and unity in blocking a couple of Trump’s Cabinet nominations.
LEADING DEMOCRATS MET by phone yesterday with Minority Leader Chuck Schumer; they pressed him to get more aggressive. We don’t think Schumer, 74, is vulnerable, but if he doesn’t beef up his rhetoric, the party could start looking for a new, younger leader.
LOTS OF OTHER FEUDS LIE AHEAD — TRADE IN PARTICULAR. But today our thoughts are with those who died in the Potomac River last night.
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