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Mike Johnson struggles with his own rasputitsa

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SPARE SOME pity for Mike Johnson, the stuck speaker of the House of Representatives. A relatively obscure congressman thrust into leadership six months ago when the ungovernable Republican majority threw out the former speaker, Kevin McCarthy, Mr Johnson may be defenestrated too if he does something that he seems to think that he must: provide additional military aid to Ukraine, over the objections of the isolationist wing of his party.

While the European Union and its member countries have contributed considerably to Ukraine’s budget and humanitarian needs, America has been Ukraine’s largest provider of military aid, amounting to $44bn since Russia’s invasion in February 2022. But further help has been stuck for months. In October 2023 President Joe Biden proposed that Congress appropriate $60bn for Ukraine as part of a security bill that would have spent a further $45bn on securing America’s southern border and on arming allies like Israel and Taiwan.

Six months of congressional Sturm und Drang ensued, but nothing has come to the president’s desk. One Republican senator, James Lankford of Oklahoma, spent months negotiating a harder-line compromise on the southern border to accompany the aid package, only for his own party to torpedo it in a matter of three days after its unveiling in February because Donald Trump, the party’s presumptive presidential nominee, rejected it for giving Mr Biden an election-year win. The Senate then passed a $95bn aid bill without any border provisions, which Mr Johnson then rejected and refused to bring up for a vote.

When foreign policy is subordinated to domestic politics, as has happened with Ukraine and Israel, incoherence often follows. You can see this in the short history of Mr Johnson’s own pronouncements. Before he was appointed speaker, Mr Johnson was a Trump-following Ukraine-sceptic, voting against a small $300m military-aid bill in September 2023. In October, after getting the top job, he sounded more supportive, saying that Vladimir Putin must not win. In December he said that this necessary aid must be paired with sweeping reforms to Mr Biden’s border policy, which would be his “hill to die on”. In February, when Mr Biden announced plans to secure the border through executive action after the failure of the bipartisan Senate deal, Mr Johnson denounced them as “election-year gimmicks”—despite having previously called for him to do exactly that. In March he said that he would unveil a new plan for Ukraine aid after Easter.

The eggs have stopped rolling, but Mr Johnson is yet to release his plan, the details of which are not being shared widely. Many of the rumoured components are designed to mollify the isolationists in his party: aid to Ukraine would be labelled as a forgivable loan rather than direct aid (following a suggestion of Mr Trump’s); some of the funding would be recouped by seizing Russian assets that are currently frozen (though many more of these are in the EU than the US); and Mr Biden would have to endure a poke in the eye by overturning his recently announced moratorium on new export projects for liquefied natural gas.

Democrats might grumpily accept even the environmental rollback; the real hindrance to Mr Johnson will be his own party. Marjorie Taylor Greene, a Republican congresswoman from Georgia, has filed a “motion to vacate” Mr Johnson from his leadership, were he to secure Ukraine funding by relying on Democratic support. Ms Greene is probably the most Putin-friendly member of the party—bizarrely saying in a radio interview this week that Ukraine was attacking Christianity while Russia was “protecting it”—but the Republican majority is razor-thin, meaning that a few defectors could cast off Mr Johnson.

Some think that Mr Johnson might simply have to accept that he cannot both arm Ukraine and keep his job. “Then he’ll go down in history as being a profile in courage who does the right thing. We need Winston Churchills right now, not [Neville] Chamberlains,” says Don Bacon, a Republican congressman representing Nebraska. Mr Bacon has been a staunch supporter of Ukraine funding, crafting a so-called discharge petition which could circumvent the speaker and bring a bill directly to the floor for a vote if a majority of House members were to sign on. The discharge petition, which has been closely watched by anxious European diplomats in Washington, is an unconventional parliamentary tool. It is still a long shot, but its existence gives Mr Johnson at least some leverage with his own hardliners.

Critics like Ms Greene are unlikely to be placated. But the cost of congressional dithering is in this case quite real. Last week Sergei Shoigu, Russia’s defence minister, announced that his army had captured 400 square kilometres of territory from the Ukrainians, who have been forced to conserve ammunition (Ukraine is over 600,000 square kilometeres, but the trend is not good). Volodymyr Zelensky, Ukraine’s president, has said that “if the Congress doesn’t help Ukraine, Ukraine will lose the war.”

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Economics

Donald Trump has many ways to hurt Elon Musk

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THERE WAS a time, not long ago, when an important skill for journalists was translating the code in which powerful people spoke about each other. Carefully prepared speeches and other public remarks would be dissected for hints about the arguments happening in private. Among Donald Trump’s many achievements is upending this system. In his administration people seem to say exactly what they think at any given moment. Wild threats are made—to end habeas corpus; to take Greenland by force—without any follow-through. Journalists must now try to guess what is real and what is for show.

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Economics

Donald Trump has many ways to hurt Elon Musk

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THERE WAS a time, not long ago, when an important skill for journalists was translating the code in which powerful people spoke about each other. Carefully prepared speeches and other public remarks would be dissected for hints about the arguments happening in private. Among Donald Trump’s many achievements is upending this system. In his administration people seem to say exactly what they think at any given moment. Wild threats are made—to end habeas corpus; to take Greenland by force—without any follow-through. Journalists must now try to guess what is real and what is for show.

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Economics

Jobs report May 2025:

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U.S. payrolls increased 139,000 in May, more than expected; unemployment at 4.2%

Hiring decreased just slightly in May even as consumers and companies braced against tariffs and a potentially slowing economy, the Bureau of Labor Statistics reported Friday.

Nonfarm payrolls rose 139,000 for the month, above the muted Dow Jones estimate for 125,000 and a bit below the downwardly revised 147,000 that the U.S. economy added in April.

The unemployment rate held steady at 4.2%. A more encompassing measure that includes discouraged workers and the underemployed also was unchanged, holding at 7.8%.

Worker pay grew more than expected, with average hourly earnings up 0.4% during the month and 3.9% from a year ago, compared with respective forecasts for 0.3% and 3.7%.

“Stronger than expected jobs growth and stable unemployment underlines the resilience of the US labor market in the face of recent shocks,” said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management.

Nearly half the job growth came from health care, which added 62,000, even higher than its average gain of 44,000 over the past year. Leisure and hospitality contributed 48,000 while social assistance added 16,000.

On the downside, government lost 22,000 jobs as efforts to cull the federal workforce by President Donald Trump and the Elon Musk-led Department of Government Efficiency began to show an impact.

Stock market futures jumped higher after the release as did Treasury yields.

Though the May numbers were better than expected, there were some underlying trouble spots.

The April count was revised lower by 30,000, while March’s total came down by 65,000 to 120,000.

There also were disparities between the establishment survey, which is used to generate the headline payrolls gain, and the household survey, which is used for the unemployment rate. The latter count, generally more volatile than the establishment survey, showed a decrease of 696,000 workers. Full-time workers declined by 623,000, while part-timers rose by 33,000.

“The May jobs report still has everyone waiting for the other shoe to drop,” said Daniel Zhao, lead economist at job rating site Glassdoor. “This report shows the job market standing tall, but as economic headwinds stack up cumulatively, it’s only a matter of time before the job market starts straining against those headwinds.”

The report comes against a teetering economic background, complicated by Trump’s tariffs and an ever-changing variable of how far he will go to try to level the global playing field for American goods.

Most indicators show that the economy is still a good distance from recession. But sentiment surveys indicate high degrees of anxiety from both consumers and business leaders as they brace for the ultimate impact of how much tariffs will slow business activity and increase inflation.

For their part, Federal Reserve officials are viewing the current landscape with caution.

The central bank holds its next policy meeting in less than two weeks, with markets largely expecting the Fed to stay on hold regarding interest rates. In recent speeches, policymakers have indicated greater concern with the potential for tariff-induced inflation.

“With the Fed laser-focused on managing the risks to the inflation side of its mandate, today’s stronger than expected jobs report will do little to alter its patient approach,” said Rosner, the Goldman Sachs strategist.

Friday also marks the final day before Fed officials head into their quiet period before the meeting, when they do not issue policy remarks.

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