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House Republicans fear Trump too much to aid Ukraine

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America’s Congress does not have a reputation for productivity, but its failure to authorise more aid for Ukraine is unusual even for the underachievers on Capitol Hill. And the legislation’s already grim prospects are diminishing as the presidential election approaches.

On February 13th the Senate approved a $95bn bill. Most of that funding is meant to assist Ukraine and replenish America’s dwindling weapons stocks. The legislation also includes $14bn for Israel, $9.2bn for humanitarian relief and some $8bn for the Indo-Pacific. Almost every Democrat and 22 Republicans voted in favour.

That is as far as the legislation is likely to go. A wing of isolationist Republicans has always opposed helping Ukraine, but now some legislators previously supportive of Ukraine argue that they shouldn’t help until America resolves its border crisis. Donald Trump, aiming to keep America’s immigration mess as a campaign issue, ordered Republicans to oppose a compromise. He also has insisted any foreign assistance should come in the form of loans to be repaid in the future.

Chuck Schumer, the Senate majority leader, called on the House to take up the bill, as it would almost certainly pass the House if voted on. But Mike Johnson, the Republican House speaker, listens more closely to Mr Trump than he does to Democratic senators. “The mandate of national-security supplemental legislation was to secure America’s own border before sending additional foreign aid,” Mr Johnson said before the bill passed. “Now, in the absence of having received any single border policy change from the Senate, the House will have to continue to work its own will.”

Republicans apparently had the great misfortune of getting what they asked for. First, they demanded that the border and Ukraine be linked. When Senate negotiators offered the toughest immigration law in decades, most Republicans rejected the offer. A foreign-aid-only bill passed, and now Mr Johnson is complaining that it does nothing to control immigration.

Republicans have such a small majority in the House that a few anti-Ukraine congressmen could challenge Mr Johnson as speaker if he were to allow a vote on military aid. He could theoretically offer amendments or restart the whole process, though there is little evidence that this House is capable of doing much. He could also split the bill into pieces and offer separate votes for Ukraine and Israel, for example, though that too appears unlikely.

Perhaps the only hope for Ukraine funding is a parliamentary manoeuvre known as a discharge petition. The time-consuming, multi-step process allows a simple majority of the House to force a vote on legislation. The mechanism could take more than a month to play out, and it hasn’t been successfully used in nearly a decade. Both sides seem to agree the tactic is unlikely to succeed.

Even though a majority of the House still supports Ukraine, many Republicans don’t feel strongly enough to defy House leadership and Mr Trump. It’s one thing to support Ukraine; it’s another to risk losing a primary to a Trump-backed challenger. And some House Democrats plan to reject the bill because of its support for Israel. Every Democratic defection will require another Republican to step up.

Time is running out for Ukraine funding, but it’s not the only item on Mr Johnson’s agenda. The House impeached Alejandro Mayorkas, the secretary of homeland security, on the same day that the Senate passed the aid bill. And a partial government shutdown will begin on March 1st in the absence of legislative action. Mr Johnson says that is where he has directed his attention now. Yet a lapse in government funding looks increasingly likely: House Republicans have shown themselves to be as feckless on setting a budget as they have been on helping allies.

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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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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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