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THE LIFE of the Senate’s bill to increase border security in exchange for sending aid to Ukraine was wretched and short. Its three main negotiators released the text on Sunday. On Monday it had the support of Mitch McConnell, the chamber’s top Republican. By Tuesday it was dead. “It looks to me, and to most of our members, as if we have no real chance here to make a law,” Mr McConnell conceded.
But that is only because of the petulant actions of those members. Republicans’ negative reactions in both chambers of Congress were overwhelming and swift—considering the bill is 370 pages long. Mike Johnson, the Republican speaker of the House of Representatives, posted on X (formerly Twitter) that the bill would be “dead on arrival” in the lower chamber. That is despite voters’ approval: a recent poll from YouGov suggests that a narrow plurality of Americans support the compromise.
Senators used to be more willing to do the hard work of governing than House members. They were supposed to be the grown-ups. Indeed, the willingness of the bill’s chief negotiators to try to craft a bipartisan compromise on an issue as toxic as immigration in an equally toxic political environment was something of a throwback to a more congenial time. But that distinction has faded as the Republican Party writ large has come under the thumb of Donald Trump, who has delighted in campaigning on border chaos, and who would not be denied the opportunity to keep doing so. “Only a fool, or a Radical Left Democrat, would vote for this horrendous Border Bill,” the former president wrote on his social-media platform, Truth Social.
Republican senators quickly fell into line. James Lankford, a senator for Oklahoma who had spent months as the lead Republican negotiating the bill, delivered a defiant message to his party on the Senate floor. “You can do press conferences without the other side,” he said, “but you can’t make law without the other side.”
The bill’s death is a blow to President Joe Biden, who supported it in large part because he needs to secure the border to help his electoral prospects. In a non-election year, the bill’s border provisions would be a Republican dream. It is far more conservative than any attempt at bipartisan immigration reform in this century. It would grant the Department of Homeland Security (DHS) the power to shut down the asylum system to those crossing illegally if the number of people trying to cross exceeds a certain threshold. But there would be limits on how long the emergency power could be used, and the small number of migrants who show up at a port of entry with an appointment would still be processed. The bill would make it harder for migrants to pass their preliminary asylum interviews, limit parole at the border—a presidential authority that Republicans say the Biden administration has used too liberally—and expand detention.
The bill contains some carrots for the many Democrats squeamish about restricting asylum. It would create a path to residency for Afghans who had helped American forces prior to their disastrous withdrawal from Afghanistan in 2021. It would slightly expand legal immigration by offering 50,000 additional immigrant visas each year for five years, and protect the children of long-term visa holders from deportation. But it notably does not contain a pathway to citizenship for undocumented immigrants, nor relief for migrants brought to America as children.
More than border security is at stake. The $118bn bill included $60bn to support Ukraine in its fight against Russia, $20bn for border enforcement and the immigration system, $14bn for Israel and $10bn for humanitarian aid to be spread across Gaza, the West Bank and Ukraine, among other things. How the president can accomplish these objectives without funds appropriated by Congress is now unclear. Mr Biden can tweak the immigration system using executive action. But America needs a lot more asylum officers and Border Patrol agents, and that takes a lot of cash.
Also unclear is Congress’s ability to accomplish anything at all. Chuck Schumer, the Senate majority leader, is pushing for a foreign-aid package for Ukraine, Israel and Taiwan. It is in effect the border bill minus the border provisions. Such a bill might get 60 votes in the Senate, where support for Ukraine among Republicans is stronger than in the House.
But any one House member can call a vote for Mr Johnson’s removal as speaker. Marjorie Taylor Greene, a MAGA congresswoman from Georgia, has threatened to do so should he move to fund Ukraine. The mutiny against former speaker Kevin McCarthy last year proves that is not an empty threat. Even with a speaker, and that is a low bar, the House is flailing. On February 6th Mr Johnson failed to convince his slim majority to impeach Alejandro Mayorkas, the DHS secretary, and to pass aid for Israel.
The approaching election, Mr Trump’s long shadow and the intransigence of the House Republican caucus mean that little governing will happen on Capitol Hill this year. The only thing Americans can be sure to expect is more political theatre. ■
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Inflation barely budged in April as tariffs President Donald Trump implemented in the early part of the month had yet to show up in consumer prices, the Commerce Department reported Friday.
The personal consumption expenditures price index, the Federal Reserve’s key inflation measure, increased just 0.1% for the month, putting the annual inflation rate at 2.1%. The monthly reading was in line with the Dow Jones consensus forecast while the annual level was 0.1 percentage point lower.
Excluding food and energy, the core reading that tends to get even greater focus from Fed policymakers showed readings of 0.1% and 2.5%, against respective estimates of 0.1% and 2.6%.
Consumer spending, though, slowed sharply for the month, posting just a 0.2% increase, in line with the consensus but slower than the 0.7% rate in March. A more cautious consumer mood also was reflected in the personal savings rate, which jumped to 4.9%, up from 0.6 percentage point in March to the highest level in nearly a year.
Personal income surged 0.8%, a slight increase from the prior month but well ahead of the forecast for 0.3%.
Markets showed little reaction to the news, with stock futures continuing to point lower and Treasury yields mixed.
People shop at a grocery store in Brooklyn on May 13, 2025 in New York City.
Spencer Platt | Getty Images
Trump has been pushing the Fed to lower its key interest rate as inflation has continued to gravitate back to the central bank’s 2% target. However, policymakers have been hesitant to move as they await the longer-term impacts of the president’s trade policy.
On Thursday, Trump and Fed Chair Jerome Powell held their first face-to-face meeting since the president started his second term. However, a Fed statement indicated the future path of monetary policy was not discussed and stressed that decisions would be made free of political considerations.
Trump slapped across-the-board 10% duties on all U.S. imports, part of an effort to even out a trading landscape in which the U.S. ran a record $140.5 billion deficit in March. In addition to the general tariffs, Trump launched selective reciprocal tariffs much higher than the 10% general charge.
Since then, though, Trump has backed off the more severe tariffs in favor of a 90-day negotiating period with the affected countries. Earlier this week, an international court struck down the tariffs, saying Trump exceeded his authority and didn’t prove that national security was threatened by the trade issues.
Then in the latest installment of the drama, an appeals court allowed a White House effort for a temporary stay of the order from the U.S. Court of International Trade.
Economists worry that tariffs could spark another round of inflation, though the historical record shows that their impact is often minimal.
At their policy meeting earlier this month, Fed officials also expressed worry about potential tariff inflation, particularly at a time when concerns are rising about the labor market. Higher prices and slower economic growth can yield stagflation, a phenomenon the U.S. hasn’t seen since the early 1980s.
19 May 2025, Berlin: Apricots are sold at a greengrocer for 7.98 euros per kilogram. Grapes and papaya are also on offer.
Photo by Jens Kalaene/picture alliance via Getty Images
Germany’s annual inflation hit 2.1% in May approaching the European Central Bank’s 2% target but coming in slightly hotter than analyst estimates, preliminary data from statistics office Destatis showed Friday.
The print compares with a 2.2% reading in April and with a Reuters projection of 2%.
The print is harmonized across the euro zone for comparability.
So-called core inflation, which strips out more volatile food and energy prices, dipped slightly from April’s 2.8% to 2.9% in May. The closely watched services print meanwhile eased sharply, coming in at 3.4% compared to 3.9% in the previous month.
Energy prices fell markedly for the second month in a row, tumbling by 4.6% in May.
Germany’s consumer price index has been closing in on the European Central Bank’s 2% target over recent months, in a positive signal amid ongoing uncertainty about the economic outlook for Europe’s largest economy.
Domestic and global issues have mired expectations for Germany’s financial future.
One the one hand, U.S. President Donald Trump’s tariffs could damage economic growth, given Germany’s status as an export-reliant country, though the potential impact of such duties on inflation remains unclear. But frequent policy shifts and developments have been muddying the picture.
On the other hand, Germany’s newly minted government is starting to get to work and has made the economy a top priority. Questions linger about when and to what extent the new Berlin administration’s policy plans might be realized.
The ECB is set to make its next interest rate decision on June 5, with traders last pricing in an over 96% chance of a quarter point interest rate reduction, according to LSEG data. Back in April, the central bank had cut its deposit facility rate by 25 basis points to 2.25%.
This is a breaking news story, please check back for updates.