President Donald Trump greets Bahrain's Crown Prince Salman bin Hamad Al Khalifa at the White House, Wednesday, July 16, 2025, in Washington. (AP Photo/Alex Brandon)

President Donald Trump said Wednesday that it was “highly unlikely” he would fire Federal Reserve Chairman Jerome Powell “unless he has to leave for fraud.” The statement came less than 24 hours after Trump indicated in a private meeting that he is leaning in favor of dismissing the head of the U.S. central bank.

Trump confirmed that he discussed the “concept” of dismissing Powell in a meeting with about a dozen House Republicans, who had gathered at the White House on Tuesday to discuss crypto legislation in the House.

“Almost every one of them said I should,” Trump said Wednesday during an Oval Office meeting.

U.S. stocks were shaky after the news broke, as such a move could help Wall Street get the lower interest rates that it loves but would also risk a weakened Fed unable to make the unpopular moves needed to keep inflation under control.

Here’s the latest:

House Speaker Mike Johnson insists he and Trump see eye-to-eye on Epstein

Johnson is emphatically denying that his views differ from the president’s on whether records related to Jeffrey Epstein’s sex trafficking investigation should be made public.

He told reporters he has been “misquoted and misrepresented” as he attempted to bring together a coalition that has been roiled by the administration’s handling of the issue.

Johnson said on a podcast Tuesday that on the Epstein files, the Trump administration “should put everything out there and let the people decide.”

The House Speaker was more specific Wednesday, saying he agrees with the president that all of the “credible” information should be released.

Trump has been trying to get supporters to move on from Epstein. He told reporters Tuesday that Attorney General Pam Bondi should release “whatever she thinks is credible,” but followed that with suggestions that the documents had credibility issues and were “made up” by Democrats in past administrations.

On Wednesday, he reiterated those claims and lambasted what he called the “Jeffrey Epstein Hoax.” He also lashed out at his own base, saying he no longer wanted the support of people who are still talking about Epstein.

A federal judge in Tennessee may rule on whether to release Kilmar Abrego Garcia from jail

Lawyers for the Justice Department have said U.S. Immigration and Customs Enforcement will detain Abrego Garcia if he’s freed.

The Salvadoran national is awaiting trial on human smuggling charges. The judge could rule in his case on Wednesday.

ICE officials have said they will initiate deportation proceedings against Abrego Garcia if he is released, and may even send him to a third country such as Mexico or South Sudan.

Abrego Garcia became a flashpoint over Trump’s immigration policies when he was wrongfully deported to his native El Salvador in March. That expulsion violated a U.S. immigration judge’s 2019 order that shields Abrego Garcia from deportation because he likely faces threats of gang violence in El Salvador.

Justice Department alumni urge lawmakers to reject Trump’s judicial pick

In a letter to the Senate Judiciary Committee, more than 900 former Justice Department lawyers raised concerns about elevating Emil Bove, a top department official, to the 3rd U.S. Circuit Court of Appeals.

They cited Bove’s role in the dismissal of New York Mayor Eric Adams’ case, and the claims of a whistleblower who says Bove suggested the department might have to flout court orders.

“It is intolerable to us that anyone who disgraces the Justice Department would be promoted to one of the highest courts in the land, as it should be intolerable to anyone committed to maintaining our ordered system of justice,” they wrote.

The committee is expected to vote Thursday on Bove’s nomination.

Bove, who also defended Trump in his criminal cases, has denied the whistleblower’s claims. He told lawmakers at his confirmation hearing: “I am someone who tries to stand up for what I believe is right.”

Vance wraps Pennsylvania speech

The vice president urged those in the crowd to, “Talk about what the bill does for American citizens,” ahead of the next year’s midterm elections.

Vance also called the vice presidency a “fun job” and said it was the honor of his life.

Vance rails against ‘elites in Washington’ promoting four-year college

The vice president says the Trump administration is pushing for Americans coming out of high school to be able to “chart your own course in your own career path.”

“Why is it that we force every single young person to get a big chunk of debt at a four-year college or university. Why don’t we give our young people more options?” Vance asked.

He added, “We think it’s fine, if you want to go to college, go to college.”

But he continued: “If you want to work with your hands, if you want to build a house, build a bridge” then “your government should not be forcing you to do what elites in Washington want you to do.”

Vance himself graduated from Ohio State University and Yale Law School.

Vance touts Trump’s budget bill in Pennsylvania

Vice President JD Vance is speaking in Pennsylvania, working to sell Trump’s sweeping budget-and-policy package in a blue-collar district that could see a ferocious congressional campaign next year.

Vance addressed the crowd at Don’s Machine Shop in West Pittston saying: “While you guys thrived with bad policy coming from Washington, D.C., I think that you’re going to take off into a rocket ship with good policy coming from Washington, D.C., under Donald J. Trump’s leadership.”

He highlighted how the measure cuts taxes, including federal levies owed on overtime pay.

The vice president also said the measure cuts taxes for companies creating jobs in the U.S. and pledged that the Trump administration would keep fighting for people who “want to work with your hands.”

The Pentagon offers a peek at the future of drone warfare

The Pentagon is showcasing the next generation of autonomous military equipment with a demonstration of aerial, undersea and terrestrial drone technology.

The Department of Defense displayed more than a dozen prototypes Wednesday during an exhibition in the Pentagon’s central plaza. The event was designed to highlight emerging technologies that military leaders hope will soon be available on the battlefield.

Defense Secretary Pete Hegseth toured the exhibition and spoke about the need to incentivize more partnerships between the military and private tech companies.

“On drones — large, small, all classes — we need to be world class,” Hegseth said.

The equipment included several unmanned aircraft designed to execute offensive and defensive missions. There were also unmanned water vessels and an autonomous submersible that generates power from temperature fluctuations in the ocean.

Other high-tech devices included autonomous weapons stations that can fire bullets or rockets.

The exhibition comes as Trump has issued new rules intended to spur innovations in drone development in the U.S.

Trump waves a ‘prop’ letter about firing the Fed chair while meeting lawmakers

The president waved it during a discussion with lawmakers Tuesday night about firing Federal Reserve Chair Jerome Powell, but it was essentially a prop drafted by someone else.

Trump hasn’t drafted an actual letter firing Powell, according to a person familiar who spoke on the condition of anonymity to describe the private meeting.

The president has called for Powell’s resignation and indicated that a renovation of Fed buildings could be grounds for dismissing the leader of the U.S. central bank.

But no final decision has been made by Trump on whether he will try to dismiss Powell, or wait out the Fed chair whose term expires in Mary 2026.

Trump told reporters Wednesday that it’s “highly unlikely” he will fire Powell.

— By Josh Boak

Speaker Mike Johnson says a new Fed chair would be ‘helpful’

Johnson stopped short of calling for Federal Reserve Chair Jerome Powell to be fired, saying he wasn’t certain about the “executive authority” involved.

But he did say “new leadership would be helpful at the Fed.”

“I’ve been unhappy with the leadership there personally,” Johnson told reporters Wednesday when asked whether Trump should remove Powell.

Tempers flare as State Department defends mass layoff in congressional committee

Disagreements erupted into a shouting match during a meeting of the Senate Foreign Relations Committee on Wednesday, when a Democratic lawmaker accused a top department official of lying about the extent of staff reductions.

Deputy Secretary of State for Management Michael Rigas testified before the House Foreign Affairs Committee on Tuesday about the firing of more than 1,300 civil servants and foreign service officers last week.

Senator Cory Booker of New Jersey was visibly angry as he confronted Rigas with a list of what Booker said were misstatements, half-truths or lies.

“I don’t trust you, Mr. Rigas,” Booker said. “Your statements lack veracity.”

“This is outrageous,” Rigas replied as he sought to respond despite multiple interruptions from Booker.

Booker’s list resembled one compiled by former State Department officials that identified certain eliminated positions that Rigas said had been largely spared from the so-called “reduction in force.” Those include employees in the bureaus of intelligence and research, consular affairs, diplomatic security, energy and international organizations.

“Sir, you have not been truthful,” Booker said. “I have watched you lie to this committee I have watched you lie to the House committee.”

Former Jill Biden aide declines to answer questions about former president's age during House Republican inquiry

Anthony Bernal, Jill Biden’s former chief of staff, invoked his Fifth Amendment rights during a deposition before the House Oversight Committee.

“Well, unfortunately, that was short,” said Congressman James Comer, the committee’s chair.

Comer promised to continue the investigation and did not rule out subpoenaing former Vice President Kamala Harris or members of President Joe Biden’s family.

Oversight Republicans claim, without evidence, that Biden was mentally incapacitated during his term and that his use of the presidential autopen while in office was illegal.

“This is corruption at the highest level,” said Rep. Byron Donalds, a Florida Republican running for governor of his state.

Democrats have dismissed the investigation as a sideshow.

“They still look like losers,” said Rep. Jasmine Crockett, a Texas Democrat who sat in on Bernal’s deposition.

US companies doing business in China hope for a leader-level summit

A meeting between Trump and Chinese President Xi Jinping could lower tensions in bilateral relations, according to Sean Stein, president of the U.S.-China Business Council.

“The business community is very supportive of the idea of a meeting between the two presidents,” Stein said Wednesday.

In its annual survey released Wednesday, a record high number of council members said they had no new plans to invest in China this year. The survey also found a record-high number of companies indicated they may relocate business operations outside China.

The survey identified the U.S.-China relationship and tariffs as the top concerns for U.S. businesses operating in China.

Stein said tariffs and export controls by China and the U.S. are presenting challenges.

U.S. Secretary of State Marco Rubio this month said odds are high for the two leaders to meet this year but that there’s no firm plan.

Trump defends Bondi, says she’s ‘done very good’ on the Epstein case

The president complained that Attorney General Pam Bondi has been “waylaid” over her handling of the case, but that he thinks “she’s doing a great job.”

Bondi has given out “credible information” about Epstein “and if she finds any more credible information she’ll give that, too,” he said.” What more can she do than that?”

Trump said Bondi has “bigger problems” to work on and cited the administration’s work to remove criminals who are in the U.S. illegally.

? Read more on the Epstein case

Trump continues criticizing his supporters over Epstein conspiracy theories

Although parts of the president’s base have clamored for more information about the Jeffrey Epstein case, Trump has made it clear that he’s done with the story.

“It’s all been a big hoax,” he said in the Oval Office on Wednesday. “It’s perpetrated by the Democrats and some stupid Republicans and foolish Republicans fall into the net.”

Trump echoed a social media post earlier in the day, when he said talking about the case distracts from his accomplishments.

Trump opens his meeting with flattery

Sitting with the crown prince of Bahrain, he described the Gulf nation as a “fantastic ally.” He said they would discuss trade and other topics.

The prince said they would announce $17 billion of investments in the United States, which “builds upon a legacy that we’re very proud of.”

Trump only wants a Federal Reserve chair who would cut interest rates

The president said Wednesday that he wants to replace Federal Reserve Chair Jerome Powell with someone who would cut interest rates, setting one of the criteria for candidates seeking to lead the U.S. central bank.

“I’m only interested in low interest people,” Trump told reporters.

The White House is pressuring Powell over the cost of renovating Fed buildings, but Trump has been outspoken in attacking Powell for declining to the Fed’s benchmark interest rate until the inflationary impact of the president’s tariffs is reflected in the data.

Trump insists that inflation is low and has suggested anyone with a brain could be the Fed chair.

“It’s not a tough job, to be honest, assuming you’re smart,” he said. “It might be one of the easiest jobs I’ve ever seen.”

Trump floats Powell dismissal in meeting with lawmakers

The president indicated in a private meeting late Tuesday that he is leaning in favor of firing Federal Reserve Chairman Jerome Powell.

The comments came in a meeting with House Republicans in the Oval Office, according to a White House official.

During the meeting, which was scheduled on a separate matter, Trump asked lawmakers how they feel about Powell, and they expressed support for dismissing him, said the official, who was granted anonymity to discuss a private conversation.

In response, the president communicated that he was leaning in that direction, according to the official.

— By Seung Min Kim

Bahrain’s crown prince arrives at the White House

Trump met his guest at the door to the West Wing. He did not answer questions about the potential for a ceasefire in Gaza.

Maine clinics sue over Medicaid defunding

One piece of the big budget and policy measure Trump signed this month sought to cut off Medicaid reimbursements for Planned Parenthood affiliates.

But the nation’s biggest abortion provider isn’t the only organization hit by the cuts.

Maine Family Planning sued Wednesday seeking to have reimbursements for its clinics restored. The group says it can be hard for many people in rural Maine to access health care without it.

Medicaid is already barred under federal law from covering most abortions. This defunding measure impacts other services – including contraception, cancer screenings and primary care – offered by certain abortion providers.

A judge has already restored Planned Parenthood’s reimbursements for now.

? Read more about the Maine clinics’ lawsuit

Trump slams his own supporters as he tries to move past Epstein ‘SCAM’

Trump faces mounting criticism from his political base over the Justice Department’s failure to release much-hyped records in Jeffrey Epstein’s sex trafficking investigation.

“Their new SCAM is what we will forever call the Jeffrey Epstein Hoax, and my PAST supporters have bought into this ‘bulls---,’ hook, line, and sinker,” he wrote on his Truth Social site Wednesday morning.

He goes on to say: “Let these weaklings continue forward and do the Democrats work, don’t even think about talking of our incredible and unprecedented success, because I don’t want their support anymore! Thank you for your attention to this matter.”

? Read more about Trump’s Epstein crisis

Rubio says US ‘very concerned’ by surge in Israel-Syria violence, seeking a restoration of ceasefire

Secretary of State Marco Rubio told reporters he had just been on the phone with “relevant parties” and hoped to have an update later Wednesday.

“We want the fighting to stop because we had a ceasefire,” he said. “Overnight it broke down, so we’re talking with both sides, all the relevant sides, and hopefully we can bring it to a conclusion.”

Earlier Wednesday, the Israeli military launched are airstrikes in the heart of Damascus, hitting the Syrian Defense Ministry headquarters and near the presidential palace in the hills outside the capital.

Clashes have raged for days in the southern Syrian city of Sweida between government forces and Druze armed groups, and Israel has launched dozens of strikes targeting government troops and convoys. Israel says the strikes are in support of the religious minority group, and has vowed to escalate its involvement.

? Read more about the fighting in Syria

Trump to sign Louisiana senator’s fentanyl bill into law

Sen. Bill Cassidy, R-La., asks a question during a Senate Health, Education, Labor, and Pensions (HELP) Committee hearing, Wednesday, June 18, 2025, on Capitol Hill in Washington. (AP Photo/Mariam Zuhaib)

Republican Sen. Bill Cassidy’s office says he has been pushing the HALT Fentanyl Act since 2021.

The bill would make permanent a 2018 emergency rule that classifies the synthetic opioid and its knockoffs as Schedule I controlled substances. That change would result in harsher sentences for possession of the drug.

The White House has a bill-signing ceremony scheduled for Wednesday afternoon.

US and Bahrain pave the way for a civilian-nuclear cooperation deal

The U.S. and Bahrain signed the agreement as the Trump administration ramps up efforts to enhance global energy security.

The deal will open up negotiations on what is known as a “123 agreement.” It will allow U.S. and American companies to invest in and construct nuclear energy projects in Bahrain, an island nation off the coast of Saudi Arabia with a population of around 1.5 million people.

Secretary of State Marco Rubio and Bahraini Foreign Minister Abdullatif bin Rashid Al Zayani signed the memorandum of understanding on Wednesday, after Rubio signed a similar agreement with Malaysia last week.

“The United States is prepared to be partner with any nation on Earth that wants to pursue a civil nuclear program that clearly is not geared towards weapons and or threatening the security of their neighbors,” Rubio said.

Huckabee makes surprise visit to Netanyahu’s trial

U.S. Ambassador to Israel Mike Huckabee’s visit to the courthouse was a rare act of involvement in his host country’s internal affairs. It comes after Trump condemned the trial as a “witch hunt.”

Prime Minister Benjamin Netanyahu is accused of fraud, breach of trust and accepting bribes in three separate cases.

Huckabee said Wednesday’s appearance was a matter of “representing what the president has said repeatedly.”

“The president has made his position very clear,” Huckabee said ahead of his visit to the courthouse in Tel Aviv. “It’s a personal thing for him. He considers the prime minister a friend.”

After the visit, Huckabee reposted Trump’s call for the trial to be thrown out and added the comment: “My conclusion? Trump is right…again.”

? Read more about Trump and Netanyahu’s relationship

A look inside a lab making the advanced fuel to power growing US nuclear energy ambitions

Near signs that warn of radioactive risk at Oak Ridge National Laboratory, a half-dozen workers from the nuclear power company X-energy are making what appear to be gray billiard balls. Inside, they’re packed with thousands of tiny black spheres that each contain a speck of uranium enriched beyond what today’s power plants use.

The United States is chasing a new age of nuclear power that banks on domestic production of reactor fuel like X-energy is making, and though the work at Oak Ridge is unfolding across just 3,000 square feet, X-energy and others are already revving up for big production.

President Trump set a goal of quadrupling domestic production of nuclear power within the next 25 years, signing executive orders in May to speed up development. A new wave of advanced nuclear reactors could be operational around 2030.

But just like cars won’t run without gas, those plants won’t run without fuel. To expand nuclear energy long-term, the nation must maximize its nuclear fuel production, according to Trump.

? Read more about US nuclear energy ambitions

Wholesale inflation can indicate where inflation might be headed

Economists also watch it because some of its components, notably measures of health care and financial services, flow into the Federal Reserve’s preferred inflation gauge — the personal consumption expenditures, or PCE, index.

Inflation began to flare up for the first time in decades in 2021, as the economy roared back with unexpected strength from COVID-19 lockdowns. That prompted the Fed to raise its benchmark interest rate 11 times in 2022 and 2023. The higher borrowing costs helped bring inflation down from the peaks it reached in 2022, and last year the Fed felt comfortable enough with the progress to cut rates three times.

But it has turned cautious this year while it waits to see the inflationary impact of Trump’s trade policies. Trump has aggressively stepped up pressure on the Fed to cut rates, a move that threatens the central bank’s independence.

US producer prices unchanged, with wholesale inflation remaining under control

U.S. wholesale inflation cooled last month, despite worries that Trump’s tariffs would push prices higher for goods before they reach consumers.

The Labor Department reported Wednesday that its producer price index — which tracks inflation before it hits consumers — was unchanged last month from May and up 2.3% from a year earlier. Both measures came in below what economists had expected.

Excluding volatile food and energy prices, so-called core producer prices were also unchanged from May and up 2.6% from June 2024.

The report on wholesale inflation came a day after the Labor Department reported that consumer prices last month rose 2.7% from June 2024, the biggest year-over-year gain since February, as Trump’s sweeping tariffs pushed up the cost of everything from groceries to appliances.

Trump’s schedule, according to the White House

1. 11 a.m. ET — Trump will greet and host a meeting with Bahrain’s Prime Minister and Crown Prince Salman bin Hamad Al Khalifa

2. 3 p.m. — Trump will participate in a bill signing ceremony

3. 7 p.m. — Trump will have dinner with Qatari Prime Minister Mohammed bin Abdulrahman bin Jassim Al Thani

1. 11 a.m. ET — Trump will greet and host a meeting with Bahrain’s Prime Minister and Crown Prince Salman bin Hamad Al Khalifa

2. 3 p.m. — Trump will participate in a bill signing ceremony

3. 7 p.m. — Trump will have dinner with Qatari Prime Minister Mohammed bin Abdulrahman bin Jassim Al Thani

Some Republicans remain skeptical of the rescissions package

Maine Sen. Susan Collins, the Republican chair of the Senate Appropriations Committee, said she was particularly concerned about a lack of specifics from the White House.

“Nobody really knows what program reductions are in it,” Collins said. “That isn’t because we haven’t had time to review the bill. Instead, the problem is that OMB has never provided the details that would normally be part of this process.”

The Office of Management and Budget acts as a nerve center for the White House, developing its budget, policy priorities and agency rulemaking.

Sen. Lisa Murkowski, R-Alaska, said she didn’t want the Senate to be going through numerous rounds of rescissions.

“We are lawmakers. We should be legislating,” Murkowski said. “What we’re getting now is a direction from the White House and being told: ‘This is the priority and we want you to execute on it. We’ll be back with you with another round.’ I don’t accept that.”

Sen. Mitch McConnell, R-Ky., Collins and Murkowski joined with Democrats in voting against the Senate taking up the measure, but the large majority of Republicans were supportive of Trump’s request.

Trump administration says it is ending deployment of 2,000 National Guard troops in Los Angeles

Chief Pentagon spokesperson Sean Parnell announced the decision Tuesday in a statement.

Roughly 4,000 National Guard troops and 700 Marines had been deployed. It was not immediately clear how long the rest would stay. The troops were tasked with protecting federal buildings and guarding immigration agents as they carry out arrests.

The president ordered the deployment of about 4,000 California National Guard troops and 700 active-duty Marines in early June to respond to protests against immigration raids in and around Los Angeles.

Their deployment went against the wishes of Gov. Gavin Newsom, who sued to stop it.

A district court judge initially said Trump acted illegally in deploying the Guard over Newsom’s opposition, but an appeals court said the administration could keep control of the troops. The case is ongoing.

Newsom said the National Guard’s deployment to L.A. has pulled troops away from their families and civilian work “to serve as political pawns for the President in Los Angeles.”

News from © The Associated Press, 2025