Today in one sentence: Trump reversed course and said he would not fire Fed Chair Jerome Powell and that his 145% tariffs on Chinese goods would “come down substantially”; Treasury Secretary Scott Bessent warned that the U.S. will withhold support from the IMF and World Bank without “real progress,” saying both are “falling short” of their missions; Elon Musk and Treasury Secretary Scott Bessent reportedly got into a shouting match in the West Wing last week during a dispute over who would lead the IRS; Musk will reduce his time at the Department of Government Efficiency next month after Tesla posted a 71% drop in quarterly profit and a 20% decline in revenue; Trump blamed Ukrainian President Volodymyr Zelensky for not accepting a U.S. peace plan that give Russia Crimea and block Ukraine from joining NATO; 40% of Americans approve of Trump’s job performance; 42% of Americans under 30 say they are barely getting by financially; 53% of Americans say their financial situation has gotten worse; and 37% of Americans approve of Trump's handling of the economy – his worst rating ever.

1/ Trump reversed course and said he would not fire Fed Chair Jerome Powell and that his 145% tariffs on Chinese goods would “come down substantially.” The shift follows warnings from top executives at Walmart, Target, and major financial firms about inflation, economic fallout, and product shortages. “We’re going to have a fair deal with China,” Trump said, though Treasury Secretary Scott Bessent made clear there would be “no unilateral reduction in tariffs” and that any deal would require action from both sides. China, meanwhile, dismissed Trump’s remarks and rejected his “threats and coercion,” saying talks would only happen under “mutual respect and reciprocity.” Despite Trump’s claim that negotiations are “active,” no formal discussions with Beijing have begun. The reversal follows weeks of market volatility and internal pressure from Trump’s own advisers. Business leaders have also warned that Trump’s tariffs could disrupt summer inventories and wreck the holiday supply chain. Powell also cautioned that the tariffs would raise prices and said the Fed would keep interest rates steady while watching for inflation. Nevertheless, Trump said he had “no intention” of firing Powell – days after calling him a “major loser” and that his removal “cannot come fast enough.” When pressed, Trump added: “Never did.” Powell’s term runs through May 2026, and current law bars his removal without cause. (Wall Street Journal / Bloomberg / Bloomberg / Washington Post / Wall Street Journal / CNN / Associated Press / NPR / CNBC / Wall Street Journal / Bloomberg / New York Times / CNBC / Axios)

  • 💡 Trump About-Face on Powell, China Follows Dire Economic Warnings. “Confronted with fresh warnings from financial markets, business leaders and top advisers, President Donald Trump this week eased off on two of his frequent punching bags: Jerome Powell and China.” (Bloomberg)

  • 💡 Why Trump Decided Not to Try to Fire Jerome Powell. “White House lawyers were studying legal options for ousting the Fed chair, but senior advisers warned Trump that attempting to do so would rattle markets.” (Wall Street Journal)

  • 💡 Top Trump aides urged president to tone down attacks on Jerome Powell. “The president’s about-face on the central bank chief, after advice from his treasury and commerce secretaries, sent markets surging.” (Washington Post)

2/ Treasury Secretary Scott Bessent warned that the U.S. will withhold support from the IMF and World Bank without “real progress,” saying both are “falling short” of their missions. He accused the IMF of focusing on “climate change, gender, and social issues” and called the World Bank’s efforts “vapid, buzzword-centric marketing.” Bessent said the $4 billion U.S. aid contribution is contingent on reform and that agency leaders must “earn the confidence of the administration.” He also called it “absurd” that the Bank still treats China as a developing country. (Washington Post / Politico / New York Times / Associated Press / Axios / CNBC)

3/ Elon Musk and Treasury Secretary Scott Bessent reportedly got into a shouting match in the West Wing last week during a dispute over who would lead the IRS. The confrontation escalated when Bessent accused Musk of undermining the Treasury and Musk responded by calling him a “Soros agent.” An aide reportedly stepped between them to break it up. White House Press Secretary Karoline Leavitt nevertheless downplayed the clash, saying “disagreements are a normal part of any healthy policy process.” Musk’s pick, Gary Shapley, was removed the next day, and Bessent’s choice, Michael Faulkender, took over as acting IRS commissioner. (Axios)

4/ Elon Musk will reduce his time at the Department of Government Efficiency next month after Tesla posted a 71% drop in quarterly profit and a 20% decline in revenue. Musk told investors he’ll still work “a day or two per week” in Washington, defending his role by saying: “the waste and fraud we stopped must not come roaring back.” But the move comes amid pressure inside the White House, where some officials have privately said Musk has become a liability for Trump. One senior aide described the shift as “a quiet phase-out,” while another noted that Musk’s 130-day cap as a special government employee conveniently expires at the end of May. Tesla, meanwhile, cited weak demand, political backlash, and production delays as major factors behind its worst earnings in years. Analysts said Musk’s political work has damaged the brand, while Tesla warned that changing trade policy and sentiment could further erode demand. (NPR / Wall Street Journal / New York Times / CNBC)

5/ Trump blamed Ukrainian President Volodymyr Zelensky for not accepting a U.S. peace plan that give Russia Crimea and block Ukraine from joining NATO. U.S. officials walked away after Zelensky said: “There is nothing to talk about. This violates our Constitution.” Trump claimed a deal was “very close” and accused Zelensky of prolonging the “killing field,” while warning he could “lose the whole country.” JD Vance also threatened the U.S. would “walk away” if Ukraine didn’t accept the terms, which European officials say heavily favor Moscow. Despite pressure, Ukrainian officials said they won’t concede territory and called the U.S. proposal a “frozen conflict disguised as peace.” (Associated Press / Axios / New York Times / NBC News / CNN / Wall Street Journal)

poll/ 40% of Americans approve of Trump’s job performance – down 7 percentage points from February. (Pew Research Center)

poll/ 42% of Americans under 30 say they are barely getting by financially. 51% believe the country is on the wrong track, with 31% unsure. Trump’s job approval among young Americans stands at 31%. (Harvard Youth Poll)

poll/ 53% of Americans say their financial situation has gotten worse – the first time since 2001 that a majority of Americans have rated their financial situation as poor. (Gallup)

poll/ 55% of Americans say they’re not confident Trump can make good decisions about economic policy, while 45% are confident. (Pew Research Center)

poll/ 37% of Americans approve of Trump’s handling of the economy – his worst rating ever – and down from 42% from January. 87% said they’re worried about inflation, 76% said they’re worried about a recession, and 56% said Trump’s handling of the economy is “too erratic.” (Reuters)

poll/ 78% of Americans believe the Trump administration must follow court orders. (Pew Research Center)

poll/ 46% of Americans live in areas with unhealthy levels of ozone or particle pollution – nearly 25 million more people compared to last year’s report. (Axios)

The midterm elections are in 559 days.

✏️ Notables.

  1. The Senate’s No. 2 Democrat will not seek reelection in 2026, ending a 44-year congressional career. Dick Durbin’s decision opens a rare Senate seat in solidly Democratic Illinois and a high-ranking leadership spot. “In my heart I know it’s time to pass the torch,” Durbin said. (New York Times / Axios / Associated Press)

  2. A U.S. citizen with a learning disabilities, who cannot read or write and has trouble speaking, was held by immigration authorities for 10 days after he allegedly said he illegally entering the U.S. and identified himself as a Mexican citizen. Jose Hermosillo was arrested in Tucson after approaching a Border Patrol agent for help, then mistakenly signed a statement saying he was a Mexican national. A judge dropped the case once Hermosillo’s birth certificate was provided, but DHS has continued to justify the detention. (CBS News / Popular Information)

  3. Robert F. Kennedy Jr. is creating a national autism registry using private medical records pulled from federal and commercial sources. The National Institutes of Health confirmed it is gathering prescription histories, genetic data, insurance claims, and even fitness tracker information to support Kennedy’s promise to uncover the cause of autism – a claim many scientists call unrealistic and harmful. NIH Director Jay Bhattacharya said up to 20 research teams will get access to the data, though records will be anonymized and restricted to aggregated use. Kennedy has promised answers by September, though NIH says it could take at least a year to release initial findings. (New Republic / CBS News / CBS News / The Guardian)

  4. The Trump administration plans to eliminate the 988 suicide hotline’s specialized support for LGBTQ youth. The program currently receives around 2,100 daily contacts and has served over 1.3 million since 2022. Mental health experts warn that ending these services will increase suicide risk among LGBTQ youth, who already face higher rates of mental health challenges. The plan still requires congressional approval. (Mother Jones / HuffPost)

  5. A federal judge blocked the Trump administration’s effort to dismantle Voice of America, Radio Free Asia, and the Middle East Broadcasting Networks, ordering the government to rehire staff and resume funding. Judge Royce Lamberth said the administration’s shutdown attempt violated legal mandates for independent public broadcasting. His ruling followed a lawsuit led by VOA journalist Patsy Widakuswara, which accused the Trump administration of silencing the outlet in violation of the First Amendment. The court found that the administration acted without a clear plan, calling the shutdown “arbitrary and capricious.” The ruling does not apply to Radio Free Europe, which filed a separate case. (Associated Press / The Hill / CBS News)

  6. The executive producer of 60 Minutes resigned, saying CBS and its parent company Paramount no longer let him run the show with journalistic independence. “It’s clear the company is done with me,” Bill Owens said. The move comes following pressure from Trump, who is suing CBS for $20 billion over an edited interview with Harris, and as Paramount seeks federal approval to sell the company to Skydance. Owens opposed settling the lawsuit, which legal experts called baseless, and said CBS executives had added oversight that compromised editorial freedom. “I am stepping aside so the show can move forward.” (New York Times / NPR / Associated Press)

Last year today: Day 1190: "Silly."
Four years ago today: Day 94: "A critical step."
Six years ago today: Day 824: Defiant.
Seven years ago today: Day 459: Under open assault.
Eight years ago today: Day 94: Rest easy.