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America’s role in the Middle East

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This is the introduction to Checks and Balance, a weekly, subscriber-only newsletter bringing exclusive insight from our correspondents in America.

James Bennet, our Lexington columnist, says America neglects the Middle East at everyone’s peril

The secretary of state declared he was not going to waste his energy chasing peace among Israelis and Arabs. The region was a quagmire, he told an aide as he took office, and he was “not going to fly around the Middle East” like his predecessor. That attitude might sound familiar from the last three American administrations, but the secretary in state in question was James Baker, during the administration of President George H.W. Bush, as described by Peter Baker and Susan Glasser in their biography, “The Man Who Ran Washington”.

Mr Baker’s aide, Dennis Ross, responded to him with a warning that more recent administrations should also have heard: while Mr Baker “might want to ignore the Middle East, it would not ignore him”.

Like Donald Trump and Barack Obama, President Joe Biden came into office wanting to focus his attention on Asia. When it came to Israelis and Palestinians he stuck with the “outside-in” approach of Mr Trump, hoping that more Arab states would sign peace deals with Israel, and that that would somehow put pressure on the Palestinians eventually to strike a deal, too. As our briefing this week explains, both those goals now seem out of reach. 

It was the first Gulf war that prompted Mr Baker to embark on his own round of intense Middle East peacemaking, taking at least eight trips to the region, including one three-week marathon, that led to the Madrid peace conference in 1991. He did not achieve a peace deal; as Mr Ross had also warned him, he would need “heroes for dramatic breakthroughs”, leaders like Anwar Sadat of Egypt, who gave his life for peace with Israel. No such heroes were on offer. 

But Madrid paved the way, as did pressure from the Bush administration that brought down a right-wing Israeli government, elevating a new prime minister, Yitzhak Rabin. During the Clinton administration, Rabin sealed the Oslo accords, the interim peace agreements between Israel and the Palestinians. Then, like Sadat, he was killed. 

I’m not suggesting this war in Gaza is about to lead to some kind of reset, much less a breakthrough. But I found myself thinking about this history as I wrote this week about the public rupture between Chuck Schumer, the Senate majority leader and a champion of Israel within the Democratic Party, and Binyamin Netanyahu, the Israeli prime minister. It seems worth thinking back on the more hopeful moments and what made them possible, including the sort of intelligent, focused attention from American peacemakers that has been missing from the Israeli-Palestinian conflict for far too long.

Economics

Andrew Bailey on why UK-U.S. trade deal won’t end uncertainty

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Bank of England Governor Andrew Bailey attends the central bank’s Monetary Policy Report press conference at the Bank of England, in the City of London, on May 8, 2025.

Carlos Jasso | Afp | Getty Images

Bank of England Governor Andrew Bailey told CNBC on Thursday that the U.K. was heading for more economic uncertainty, despite the country being the first to strike a trade agreement with the U.S. under President Donald Trump’s controversial tariff regime.

“The tariff and trade situation has injected more uncertainty into the situation… There’s more uncertainty now than there was in the past,” Bailey told CNBC in an interview.

“A U.K.-U.S. trade agreement is very welcome in that sense, very welcome. But the U.K. is a very open economy,” he continued.

That means that the impact from tariffs on the U.K. economy comes not just from its own trade relationship with Washington, but also from those of the U.S. and the rest of the world, he said.

“I hope that what we’re seeing on the U.K.-U.S. trade side will be the first of many, and it will be repeated by a whole series of trade agreements, but we have to see that happen of course, and where it actually ends up.”

“Because, of course, we are looking at tariff levels that are probably higher than they were beforehand.”

Trump unveils United Kingdom trade deal, first since ‘reciprocal’ tariff pause

In Bank of England’s Monetary Policy Report released Thursday, the word “uncertainty” was used 41 times across its 97 pages, up from 36 times in February, according to a CNBC tally.

The U.K. central bank cut interest rates by a quarter percentage point on Thursday, taking its key rate to 4.25%. The decision was highly divided among the seven members of its Monetary Policy Committee, with five voting for the 25 basis point cut, two voting to hold rates and two voting to reduce by a larger 50 basis points.

Bailey said that while some analysts had perceived the rate decision as more hawkish than expected — in other words, leaning toward holding rates elevated than slashing them rapidly — he was not surprised by the close vote.

“What it reflects is that there are two sides, there are risks on both sides here,” he told CNBC.

“We could get a much more severe weakness of demand than we were expecting, that could then pass through to a weaker outlook for inflation than we were expecting.”

“There’s a risk on the other side that we could get some combination of more persistence in the inflation effects that are gradually working their way through the system,” such as in wages and energy, while “supply capacity in the economy is weaker,” he said.

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Economics

Trump knocks down a controversial pillar of civil-rights law

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IN THE DELUGE of 145 executive orders issued by President Donald Trump (on subjects as disparate as “Restoring American Seafood Competitiveness” and “Maintaining Acceptable Water Pressure in Showerheads”) it can be difficult to discern which are truly consequential. But one of them, signed on April 23rd under the bland headline “Restoring Equality of Opportunity and Meritocracy”, aims to remake civil-rights law. Those primed to distrust Mr Trump on such matters may be surprised to learn that the president’s target is not just important but also well-chosen.

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Economics

Harvard has more problems than Donald Trump

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A Programme at Harvard Divinity School aspired to “deZionize Jewish consciousness”. During “privilege trainings”, working-class Harvard students were instructed that, by being Jewish, they were oppressing wealthier, better prepared classmates. A course in Harvard’s graduate school of public health, “The Settler Colonial Determinants of Health”, sought to “interrogate the relationships between settler colonialism, Zionism, antisemitism, and other forms of racism”: Will these findings by Harvard’s task-force on antisemitism and anti-Israel bias, released on April 29th, shock anyone? Maybe not. Americans may be numb by now to bulletins about the excesses, not to say inanities, of some leftist academics.

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