The Latest: Interest rates are central to Trump’s continuing feud with Fed chair Powell

President Donald Trump visited the Federal Reserve headquarters in Washington on Thursday, where he publicly scorned Fed chairman Jerome Powell over the costs of a long-planned, roughly $2.5 billion renovation project, and sparred with Powell, who challenged the president’s latest price tag as incorrect.

Trump has previously indicated that Powell’s handling of the extensive renovation project on two agency buildings could be grounds for firing. But on Thursday, when asked if the rising costs of the Fed’s renovation was a “fireable offense,” Trump said, “I don’t want to put this in that category.”

Trump has criticized and threatened to fire Powell for months for keeping the short-term interest rate the Fed controls at 4.3% after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump’s sweeping tariffs on imports, which Powell says could push up inflation. If Trump were to undermine the Fed’s independence, it could reduce the Fed’s ability to calm financial markets and stabilize the U.S. economy.

Here's the latest:

DOJ prosecutor who handled high-profile Capitol riot cases sues over his firing

Michael Gordon ’s lawsuit claims that his recent firing was politically motivated retribution for his work on prosecuting Trump supporters who stormed the Capitol on Jan. 6, 2021.

He and two other former employees — Patricia Hartman and Joseph Tirrell — are plaintiffs in the lawsuit filed Thursday against the Department of Justice, Attorney General Pam Bondi and the Executive Office of the President.

Gordon, 47, said he received a performance review two days before his firing and got the highest rating. His one-page termination letter, signed by Bondi, did not specify any reasons for his dismissal.

Gordon said he is proud to have played a part in the largest investigation in Justice Department history.

“We did what was right for the right reasons, without fear or favor,” Gordon told AP this week. “I didn’t lose my job for breaking the law. I lost it for enforcing it.”

A DOJ spokesperson declined to comment.

Dozens of department attorneys have been fired, demoted or forced out or have quit since Trump returned to the White House. Gordon, Hartman and Tirrell appear to be the first to sue.

Trump celebrates Australia’s announcement that it will reduce restrictions on US beef imports

“Now, we are going to sell so much to Australia because this is undeniable and irrefutable Proof that U.S. Beef is the Safest and Best in the entire World,” the president said in a post on his Truth Social platform.

Australian Agriculture Minister Julie Collins said Thursday that relaxing the restrictions designed to keep the country free of mad cow disease, also known as bovine spongiform encephalopathy or BSE, would not compromise biosecurity.

“Australia stands for open and free trade — our cattle industry has significantly benefited from this,” Collins said in a statement.

The Trump administration has called the decision a major victory over “non-scientific trade barriers,” and U.S. Secretary of Agriculture Brooke L. Rollins congratulated the president on a “major trade breakthrough that gives greater access to U.S. beef producers selling to Australia.”

Trump backs Whatley for Senate seat from North Carolina

“Mike would make an unbelievable Senator from North Carolina,” the president posted on his Truth Social platform Thursday night.

“So, should Michael Whatley run for the Senate, please let this notification represent my Complete and Total Endorsement,” Trump added.

Whatley is chairman of the national Republican Party. Earlier in the day, Trump’s daughter-in-law, Lara Trump, passed on seeking the open seat in 2026.

Democrats see the race as their top chance to flip a seat in the midterm elections as they try to regain control of the Senate. Republican Sen. Thom Tillis recently made a surprise announcement that he would not run for a third term after clashing with Trump.

The White House wants more states to redraw House maps to help GOP. Democrats are readying a fight

The White House is eyeing redistricting efforts beyond Texas to help Republicans in 2026 — and Democrats are preparing to escalate in response.

What’s shaping up to be a multistate redistricting battle could mark the opening round for House control ahead of next year’s midterms, when Democrats see retaking the House as the party’s best chance to break Republicans’ hold on Congress and Trump is determined to keep the GOP’s majority.

Democrats, under pressure from their base to match GOP tactics, have grown more forceful in their messaging and are taking concrete steps to push back, even as the party enters at a disadvantage.

“If they’re going to go nuclear, then so am I,” said Sen. Elissa Slotkin. “They’re forcing us into this position because they’re trying to pick their voters.”

▶ Read more about the redistricting fight

US and Mexico sign accord to combat Tijuana River sewage flowing across the border

The agreement outlines specific steps, funds and a timetable to clean up the longstanding problem of the Tijuana River pouring sewage across the border and polluting California beaches.

Environmental Protection Agency Administrator Lee Zeldin and his Mexican counterpart Alicia Bárcena signed the memorandum of understanding Thursday.

Under the agreement, Zeldin said, Mexico will complete its allocation of $93 million toward completing infrastructure projects. Mexico also will adhere to a specific schedule.

Billions of gallons of sewage and toxic chemicals from Tijuana have polluted the Pacific Ocean off neighboring Southern California over the years, closing beaches and sickening people.

Administration appeals to Supreme Court to allow $783 million in research-funding cuts

The Trump administration made the appeal Thursday as part of its push to roll back federal diversity, equity and inclusion efforts.

The Justice Department argued that a federal judge in Massachusetts was wrong to block the National Institutes of Health from making the $783 million in cuts to align with the president’s priorities.

U.S. District Judge William Young found that the abrupt cancellations ignored long-held government rules and standards.

Young, an appointee of Republican President Ronald Reagan, also said the cuts amounted to “racial discrimination and discrimination against America’s LGBTQ community.”

The ruling came in lawsuits by 16 attorneys general, public-health advocacy groups and some affected scientists. His decision addressed only a small fraction of the hundreds of NIH research projects that have been cut.

The administration’s appeal also takes aim at nearly two dozen cases over funding.

Venezuelan sent to El Salvador by Trump administration says he was beaten by prison guards there

Neiyerver Adrián Leon Rengel, 27, has taken the first step toward suing the government, saying he was wrongly sent to El Salvador and held in the notorious prison, where he was beaten and kept from contacting family or an attorney.

Leon Rengel, 27, filed a $1.3 million claim with the Department of Homeland Security, his attorneys said Thursday.

He is one of over 250 migrants from Venezuela who were sent to El Salvador in March after Trump invoked the Alien Enemies Act of 1798.

Immigration agents took Leon Rengel into custody March 13 in the parking lot of his apartment in Irving, Texas, wrongly saying his tattoos reflected an affiliation with the Venezuelan gang Tren de Aragua, according to his claim.

He entered the U.S. in 2023, worked as a barber and was scheduled to appear before an immigration judge in 2028.

Homeland Security alleged via email that Leon Rengel entered illegally and is a “confirmed associate” of Tren de Aragua, though without saying how it reached that conclusion.

▶ Read more about the case

Trump administration sues New York over ‘sanctuary city’ policies

The lawsuit argues that the policies are obstructing the government from enforcing immigration law and contributed to the recent shooting of an off-duty U.S. Customs and Border Protection officer.

It is the latest in a series of complaints brought by the Justice Department targeting state or city policies seen as interfering with immigration enforcement.

Attorney General Pam Bondi accused New York of releasing “thousands of criminals on the streets to commit violent crimes against law-abiding citizens due to sanctuary city policies.”

“If New York City won’t stand up for the safety of its citizens, we will,” Bondi said in a statement.

Kayla Mamelak Aluts, a spokesperson for Mayor Eric Adams, said the mayor “supports the essence” of the city’s policies but has urged the City Council “to reexamine them to ensure we can effectively work with the federal government to make our city safer” when it comes to dealing with “violent criminals.”

“So far, the Council has refused,” she added.

DOJ’s No. 2 official says Ghislaine Maxwell interview to continue Friday

“The Department of Justice will share additional information about what we learned at the appropriate time,” Deputy Attorney General Todd Blanche said via the social platform X.

That came after he met Thursday with Maxwell, the imprisoned former girlfriend of financier and convicted sex offender Jeffrey Epstein.

The meeting is part of a Justice Department effort to cast itself as transparent following backlash from parts of Trump’s base over an earlier refusal to release additional Epstein records.

A lawyer for Maxwell said she “answered all the questions truthfully, honestly and to the best of her ability.” David Oscar Markus said the meeting was “very productive” but declined to comment on “the substance.”

Maxwell was convicted of helping Epstein sexually abuse underage girls. Epstein died in a New York jail in 2019 while awaiting trial.

Iran says it’s ready for nuclear talks with the US but only if Washington rebuilds trust

That’s according to social media comments by Deputy Foreign Minister Kazem Gharibabadi on Thursday, ahead of a key meeting with European officials.

It will be the first meeting since a ceasefire was reached after a 12-day war waged by Israel against Iran in June, which also saw U.S. B-52 bombers strike nuclear-related facilities in the Islamic Republic.

The discussions will bring together officials from Iran, Britain, France and Germany and include the European Union’s foreign policy chief, Kaja Kallas. A similar meeting was held in May.

Gharibabadi said that for talks with the U.S. to take place, “several key principles” must be upheld.

Those include “rebuilding Iran’s trust — as Iran has absolutely no trust in the United States,” he said, adding that there can be no room “for hidden agendas such as military action, though Iran remains fully prepared for any scenario.”

▶ Read more about Iran’s conditions

Man accused of attempting to assassinate Trump can represent himself at trial

U.S. District Judge Aileen Cannon signed off on Ryan Routh’s request but said court-appointed attorneys need to remain as standby counsel. The federal public defenders had asked this week to be taken off the case, saying Routh refused repeated attempts to meet with him.

Routh said during Thursday’s hearing that his attorneys were diligent but did not listen to and were afraid of him.

“How are they supposed to represent me and say I’m not a dangerous person when they don’t believe that?” Routh said.

Routh, 59, is scheduled to stand trial in September, a year after prosecutors say a U.S. Secret Service agent thwarted his attempt to shoot Trump as he played golf.

Routh has pleaded not guilty to charges of attempted assassination, assault on a federal officer and several firearm violations.

FCC approves Paramount’s $8 billion deal with Skydance

The approval comes after months of turmoil around Trump’s legal battle with “60 Minutes,” the crown jewel of Paramount-owned broadcast network CBS.

With the specter of the administration potentially blocking the hard-fought deal with Skydance, Paramount agreed this month to pay a $16 million settlement with the president.

Critics called that a veiled a bribe to appease Trump, amid rising alarm over editorial independence overall.

Further outrage emerged after CBS said it was canceling Stephen Colbert’s “Late Show” days after the comedian sharply criticized the settlement on air. Paramount cited financial reasons, but big names both within and outside the company have questioned its motives.

FCC Chairman Brendan Carr said the merger is an opportunity to bring more balance to what he called a “once-storied” CBS network.

“Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change,” Carr said in a statement.

Trump’s AI and data center plan could speed up building boom already expected to strain US’ ability to power it

The plan is to boost AI and build data centers across the country. The White House has vowed to expedite permitting for construction of data centers and reconsider environmental regulations that stand as barriers for development.

Massive amounts of electricity are needed to support AI. In many cases that may come from burning coal or natural gas.

Tech companies are tapping into nuclear power as a way to reduce data center-induced emissions while still meeting demand and staying competitive. But emerging demand is so big that it cannot be met with nuclear or clean energy alone.

Regardless of what powers AI, the simple law of supply and demand makes it all but certain that costs for consumers will rise.

▶ Read more about the administration’s AI and data center plan

Nancy Pelosi says Democrats ‘fully intend’ to win back the House

The former speaker said “everything is on the table” as House Democrats work to counter Trump’s redistricting push in Texas with their own plans to redraw congressional maps in California. The San Francisco Democrat believes her home state could pick up more seats for her party.

“We fully intend to win the House in this next election, there’s no question about that,” Pelosi told AP in an interview.

“I don’t like redistricting in the middle of a decade,” she said, but if that’s what the party needs “to win, we will do that. Everything is on the table.”

California Democrats discussed the matter issue during a private meeting Wednesday, and Pelosi joined an emergency call the following day with others in the state.

Pelosi also said Democrats are mobilizing against Republicans for passing Trump’s big tax breaks and spending cuts bill: “They know they’re going to lose, because their policies are so bad. It is a stinking, lousy, rotten bill.”

DOJ’s No. 2 official meets with Ghislaine Maxwell

Deputy Attorney General Todd Blanche has met with Maxwell, the imprisoned former girlfriend of financier and convicted sex offender Jeffrey Epstein.

The meeting is part of a Justice Department effort to cast itself as transparent following backlash from parts of Trump’s base over an earlier refusal to release additional Epstein records.

A lawyer for Maxwell said she “answered all the questions truthfully, honestly and to the best of her ability.” David Oscar Markus said the meeting was “very productive” but declined to comment on “the substance.”

On Tuesday, Blanche said in a social media post that Trump “has told us to release all credible evidence” and that if Maxwell has information about anyone who has committed crimes against victims, the FBI and DOJ “will hear what she has to say.”

Maxwell was convicted of helping Epstein sexually abuse underage girls. Epstein died in a New York jail in 2019 while awaiting trial.

White House deputy chief of staff says Fed chair was ‘splitting hairs’ over the cost of renovations

James Blair said budget officials still have questions about the costs of renovations at the Fed’s headquarters. “There’s no way around it, the cost overrun is massive,” he told reporters.

Trump visited the Fed on Thursday in an attempt to publicly shame Jerome Powell, its chair, over the renovation costs. When Trump said they had increased from $2.5 billion to $3.1 billion, Powell said the president was including work on a separate Fed building.

“We still want to get to the bottom of the plans that were submitted and how they have changed,” Blair said.

Institute of Peace’s request for full appellate court hearing is denied

The U.S. Court of Appeals for the D.C. Circuit rejected the the request for a hearing of the full court on lifting the stay of a three-judge panel last month.

The institute said in a statement that would put its efforts into winning its case before the three-judge panel and “regain control of the organization and its assets — including its headquarters — and to fulfill its congressionally mandated mission.”

In March, the Department of Government Efficiency took over the headquarters of the 300-employee institute and its board and acting president were fired, part of a government downsizing under a Trump executive order.

A district judge overturned those actions in May, and the institute, which focuses on peace initiatives and conflict resolution around the world, regained control of its headquarters.

The appeals court stayed Howell’s ruling June 27 and forced the turnover of the headquarters for a third time.

Trump on the cost of renovations at Federal Reserve HQ: ‘It is what it is’

The president made the comment on his Truth Social platform after visiting the central bank and attempting to publicly shame Fed Chair Jerome Powell over renovation costs. Still, he said, he hopes the project is finished “ASAP.”

“The cost overruns are substantial but, on the positive side, our Country is doing very well and can afford just about anything — Even the cost of this building!” the president said.

Trump said he hopes to lend his expertise to the project, citing his experience renovating the Old Post Office building.

US envoy meets with Syria and Israel on de-escalation

Trump’s special envoy to Syria says he met with representatives from Syria and Israel to discuss de-escalation and “we accomplished precisely that.”

Tom Barrack, who is also U.S. ambassador to Turkey, said on social media that the parties met in Paris on Thursday and committed to further those efforts.

Israel intervened during the latest outbreak of sectarian violence in Syria, which the White House said this week caught Trump off guard.

Barrack told AP this week that Israel’s actions were poorly timed and complicated efforts to stabilize the region following years of civil war in Syria.

Trump has sought to support Syria’s new government.

College industry group rejects Columbia deal as a roadmap

A higher education industry group is rejecting the Trump administration’s suggestion that its deal with Columbia University can be a roadmap for other colleges facing federal investigations.

Columbia said Wednesday that it agreed to pay more than $220 million to restore federal research money that was canceled in the name of combating antisemitism on campus.

Ted Mitchell, president of the American Council on Education, said the deal “cannot be a template for the government’s approach to American higher education.”

“Columbia was put in an untenable position by the outrageous actions of the executive branch of the government,” he said.

▶ Read more about Trump and higher education

Trump signs executive order seeking to clarify college athletes’ employment status

The order addresses whether college athletes can be considered employees of their schools and aims to clarify national standards for the NCAA’s name, image and likeness program.

The decision follows a surge in money flowing through college athletics and court victories for athletes seeking compensation. In 2021 the NCAA allowed athletes to profit from NIL deals after a Supreme Court ruling against its restrictions.

The shift has led to schools paying athletes directly and sparked debates over collective bargaining and labor laws. The NCAA continues to push for antitrust protections, even amid these changes.

▶ Read more about the executive order and NIL

Trump signs bill to cancel $9 billion in foreign aid, public broadcasting funding

President Donald Trump signed a bill Thursday canceling about $9 billion that had been approved for public broadcasting and foreign aid as Republicans look to lock in cuts to programs targeted by the White House’s Department of Government Efficiency.

The bulk of the spending being clawed back is for foreign assistance programs. About $1.1 billion was destined for the Corporation for Public Broadcasting, which finances NPR and PBS, though most of that money is distributed to more than 1,500 local public radio and television stations around the country.

The White House had billed the legislation as a test case for Congress and said more such rescission packages would be on the way.

▶ Read more about budget cuts

Trump says Fed spending too much money to protect historic features in renovation

The president said the Federal Reserve spent too much money on plywood to protect the historic features of its central bank.

“It’s a very luxurious situation taking place,” Trump told reporters. “Let’s put it that way.”

Trump said his goal is to get the renovation project done. He noted that it was a very expensive project with building underground parking lots and opening up the basement, causing the Fed to build a “reverse bathtub.”

Trump said he didn’t want to put Powell in a situation of being fired, but he said his renovation of the Old Post Office in Washington into a hotel with its marble bathrooms only cost $200 million. The Fed renovations are expected to cost roughly $2.5 billion.

Trump scorns Powell in meeting over Federal Reserve construction spending

Trump sought to publicly shame Fed Chair Jerome Powell over the cost of renovating the central bank’s headquarters, suggesting that the cost was $3.1 billion instead of the $2.5 billion cited by the Fed.

“This came from us?” Powell said, later figuring out that Trump was including the renovation of the Martin Building that was finished five years ago.

“Do you expect any more additional cost overruns?” Trump asked.

“Don’t expect them,” Powell said.

Trump said in his career as a real estate developer he would fire someone for cost overruns.

The president joked that he would back off Powell if he lowered interest rates.

Trump says he’ll meet with Fed Chair Jerome Powell as part of construction site tour

Trump has lambasted the Federal Reserve for its $2.5 billion renovation of its headquarters and another building ahead of a Thursday tour of the site.

He posted on Truth Social that Jerome Powell, the chair of the U.S. central bank, will also be “present” to an event in which the president is expected to attack the cost of the project. Trump has been publicly pressuring Powell to cut interest rates and has tried to pillory him on social media.

Also attending the site tour are Sen. Tim Scott, R-S.C., Sen. Thom Tillis, R-N.C., White House budget director Russ Vought and Bill Pulte, director of the Federal Housing Finance Agency.

White House looking to push redistricting beyond Texas

Talk about mid-decade redistricting has been centered around Texas, but the White House signals it’s looking at other states, too.

Officials are looking to redraw lines in states like Missouri, according to a person familiar with conversations but unauthorized to speak publicly about them.

Texas’ Republican-controlled legislature convened a special session this week with the aim of considering House district maps in ways that favor their party in next year’s midterm elections.

State Dept. remains mum on what ‘alternative options’ US will use for Israeli hostage release after breakdown in talks

At a news briefing Thursday, State Department spokesperson Tommy Pigott would not offer details on what the “alternative options” the U.S. is considering to release hostages in Gaza after Trump envoy announced a breakdown in negotiations.

When pressed for clarity on whether and how the U.S. would proceed, Pigott did not offer clarity and said, “This is a very dynamic situation.”

He said there’s never been a question of the U.S. commitment to reaching a ceasefire, but Hamas’ commitment.

Journalists get rare tour of Fed building renovations before Trump visit

On Thursday, reporters wound through cement mixers, front loaders, and plastic pipes as they got a close-up view of the active construction site that encompasses the Fed’s historic headquarters.

Fed staff pointed out new blast-resistant windows and seismic walls that were needed to comply with modern building codes and security standards set out by the Department of Homeland Security.

Sensitivity to the president’s visit later Thursday among Fed staff was high during the tour. Reporters were ushered into a small room outside the Fed’s boardroom, where 19 officials meet eight times a year to decide whether to change short-term interest rates. The room is oval-shaped, and someone had written “oval office” on plywood walls.

The Fed staff downplayed the inscription as a joke. When reporters returned to the room later, it had been painted over.

▶ Read more about Fed headquarters

CISA nominee won’t say whether he’d bend to Trump on false election security claims

Trump’s pick to run the nation’s cybersecurity agency, Sean Plankey, evaded some questions about election security in his confirmation hearing with a Senate committee on Thursday morning.

When Sen. Richard Blumenthal (D-CT) asked him if the 2020 election was rigged and stolen, the nominee said he had not reviewed that election’s cybersecurity and his personal opinions weren’t relevant. He acknowledged that President Joe Biden was confirmed by the electoral college and sworn in.

Blumenthal then pressed Plankey on what he would do if Trump later pushed him to falsely claim the 2026 or 2028 elections were rigged.

“Senator, as a cybersecurity professional, these are state-run elections,” Plankey answered. “I have not reviewed the cybersecurity posture of all 50 states. That’s like a doctor who’s diagnosing somebody over the television because they saw him on the news.”

“No, it’s like a doctor who has a patient come to him and is responsible for doing the diagnosis,” Blumenthal replied. The senator called Plankey’s answers “unsatisfactory” and accused him of “undermining the confidence of the nation in the election apparatus.”

The uncomfortable exchange reflects partisan tensions over the role CISA should play in combating the rise of election fraud claims that have frayed the nation’s trust in election officials and voting machines. CISA is tasked with protecting the nation’s critical infrastructure, from dams and power plants to banks and voting systems.

Trump signed an executive order earlier this year directing the Justice Department to investigate former CISA head Chris Krebs and strip his security clearances. Krebs became a target of the president’s ire after he insisted the 2020 election was secure and ballot counts were accurate.