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CNN
4 days ago
- Business
- CNN
Trump feared a fight with Musk could undermine his signature bill. Then their feud erupted
The staggering and exceedingly public rupture in the world's most consequential and unprecedented partnership was a long time coming. But the surreal state of suspended animation that consumed Washington as President Donald Trump and Elon Musk traded escalating blows on social media obscured a 48-hour period that illustrated a profoundly high-stakes moment for the White House. Trump's entire economic agenda is sitting on a knife's edge. Its most critical components are running up against deadlines and locked in a series of complex negotiations with limited margin for error. In two days, Musk managed to undercut, attack or inflame just about all of it. 'He's kind of been a ticking time bomb for a while now,' one person familiar with Musk's unique and unprecedented role in the White House told CNN. 'But this is, and has always been, so much bigger than him and explains why we ended here after the last few days.' Musk was never a key player on Trump's economic team and wasn't involved in drafting the agenda or at the table for the implementation efforts that launched when Trump entered office. Musk had scrapped with Peter Navarro, Trump's top trade adviser, and Treasury Secretary Scott Bessent and had worn out his welcome in the power centers of the administration, multiple senior officials told CNN. But the billionaire's rolling and increasingly scorched-earth attacks on Trump's sweeping tax and spending package this week posed an acute threat to the cornerstone of Trump's legislative agenda. For all the ways Trump's tariff-centric economic approach has created chaos and uncertainty across the global financial system, the underlying data has continued to show the US economy in a stable and resilient place. But Trump and his top economic officials are in the midst of a high-wire act to maintain and, ultimately, they say, dramatically accelerate US economic growth. Musk's tirade served as the backdrop of Trump's critical meeting with key Republican senators on Wednesday afternoon, irritating White House advisers trying to balance the House-passed version of the 'One Big Beautiful Bill' and competing Senate priorities. Musk's stream of consciousness attacks centered on the deficit projections tied to the bill, which economic scorekeepers universally agree will pile trillions onto the soaring US debt over a decade. The White House has insisted the bill will pay for itself – and has rapidly accelerated its messaging efforts to rebut any analysis that says otherwise to mollify fiscal hawks on Capitol Hill. Yet Trump held his fire, in part because of an effort to avoid an escalation that would trigger Musk to declare all-out war against Republican lawmakers weighing the future of a bill essential to his entire agenda, according to two White House officials. On Thursday, as he weighed in on it during press spray with German Chancellor Friedrich Merz ahead of their private meetings that were heavily focused on trade and the economy, Musk's real-time reaction took it there anyway. By the time Speaker Mike Johnson arrived at the White House for his own meetings, an all-out war had broken out between the two and included Musk taking a clear swipe Trump's tariffs. Johnson was with Trump in the Oval Office watching in real time as Musk declared the equivalent of social media nuclear war. Johnson, who deftly navigated his miniscule minority to get Trump's 'One Big Beautiful Bill' through the House, is an essential player during the Senate effort that threatens to crack the fragile compromise between House conservatives and more moderate members. He's urged Musk to de-escalate, traded texts with him and repeatedly defended the bill from his attacks to reporters. Trump threatened the government contracts of Musk's business empire Thursday and placed a round of calls to reporters on Friday morning that focused primarily on making public there would be no call between the two men, despite efforts by allies to arrange the start of a peace process. There's now talk of selling the Tesla that Musk brought to the White House, one White House official said. But Trump again chose not to engage on the issue throughout the rest of the day. There were no social media posts about Musk. A scheduled swearing in and signing of an executive order were also closed to the press. In part, Trump didn't want to completely crowd out a morning of good economic news, according to a person familiar with the matter. But Trump has also told Republican lawmakers he understands how difficult Musk can make the path ahead in their legislative efforts. He's made clear, repeatedly, that he thinks Musk has 'gone completely crazy,' according to one lawmaker, and is cognizant of the pressure on his House and Senate allies. Musk's attacks, and his political threats to the same lawmakers who depended on his deep pockets in 2024 and planned to rely on them again in the midterm elections, undeniably add yet another complication to a moment defined by uncertainty. He has also amped up his rhetoric against Trump's tariffs – another cornerstone of the administration's economic agenda – at a volatile and critical moment in a dozens of complex and fluid negotiations. The second US-China bilateral trade talks, which were set in motion during Trump's call with Xi, will take place on June 9 in London, Trump announced Friday. Trump's economic team has dismissed Musk's tariff attacks, saying his opposition is well known and his argument is undercut by current economic data and Trump's first term tariffs. 'We can have disagreements about it, but I would simply say that everybody during our first term who said that the tariffs were going to be recessionary and inflationary were obviously, obviously and widely wrong,' Navarro told reporters on Thursday. The sweeping price increases predicted in the wake of Trump's market rattling April 2 'Liberation Day' announcement haven't emerged and economic activity remains durable despite pervasive pessimism in consumer and business sentiment surveys. The May jobs report Friday showed another month of steady job growth outpacing expectations. That has provided ample evidence for White House officials to dismiss outright concerns that the survey data is a leading indicator for turmoil to come. Still, Musk holds some important tools in his shed if he wanted to undermine Trump's tariff agenda – although it's not yet clear that is is considering using them. For example, many foreign governments have sought to sign contracts with Musk's Starlink service, which some diplomats have told CNN was viewed as helpful to trade talks. White House officials insist Musk's dramatic turn against Trump and the cornerstone of his legislative agenda won't ultimately move the needle as lawmakers grind through the most critical stage for the bill. 'We're full steam ahead, moving forward,' Office of Management and Budget Director Russell Vought said Thursday on CNN News Central. Their arguments in favor, but more importantly the alternative if it fails – a sweeping $4 trillion tax cut due to the expiration of the individual tax cuts in Trump's 2017 law that expire at the end of the year – will ultimately get it over the finish line, officials say. Trump needs this bill to pass. His economic agenda was always predicated on its sweeping package of tax cuts and incentives even as much as Trump's expansive tariff regime, which was designed to re-orient the global trading system, incentivize massive investment in the US, secure substantial market access for US firms and drive significant new revenues into the federal coffers. Senate Republicans spent this week grappling with the complex balancing act of merging their priorities with the House version of Trump's tax cuts and incentives package – a bill that passed by a single vote. The Trump-backed deadline of July 4th to sign the bill, which was always aspirational at best, is now widely understood to be impossible, according to three senior GOP senate aides. Congressional Republicans, many of whom had also grown annoyed with Musk over the last few months, have largely dismissed the billionaire's fiery opposition to the bill. But the fiscal hawks seeking deeper spending cuts have started to utilize an ally that has already demonstrated a bank account and social media company that carry with them the kind of power and reach without much modern precedent. White House officials are united in their confidence they can navigate the exceedingly tight timeline, complexity and whip counts ahead. But even they implicitly nod to a deeply uncertain reality when asked for their own economic forecasts. 'It's hard to give a very precise forecast for growth, because we have yet to see exactly how the tax bill shapes up between the reconciliation process, between the House and the Senate,' said Stephen Miran, Council of Economic Advisors Chairman, on CNBC Friday. 'And we have yet to see exactly how the trade deal shape up as they as they will, I expect, continue to be made in coming weeks, so it's hard to give a precise forecast when the policy details are still being worked out.' Musk wasn't as cautious with his own forecast the afternoon prior. 'The Trump tariffs will cause a recession in the second half of this year,' Musk posted.
Yahoo
01-06-2025
- Business
- Yahoo
Send This To Your Grandma, Dad, Or MAGA-Supporting Family When They Ask You How Trump's Economy Is Going
Want to know if Trump's economy is actually doing as well as he promised? Subscribe to the Economy Hate Watch newsletter and never miss our monthly update. Hi there, my name is Alexa, and for each month of Donald Trump's presidency, I'm tracking the real numbers achieved by his administration on BuzzFeed. (AKA, the unemployment rate, cost of eggs, gas prices, inflation, the Dow Jones, whether citizens received a stimulus check, and Trump's overall approval rating.) View this photo on Instagram Why am I doing this? Because Trump and his campaign positioned itself, and perhaps largely won on, being the "economy vote" — a title that seems ironic now as his global tariff war seems to be hurtling us straight toward a recession... ...and significantly steeper prices. All of which, Trump referred to as a "transition period" when pressed about how his tariffs could financially hurt Americans — a far cry from his original campaign promise to 'immediately bring prices down, starting on Day One.' So without further ado, here's how Trump's April played out: Note: Data on inflation is released a few weeks after each month has ended, so our reports will look at the previous month's numbers. Unemployment has been sneaky under the Trump administration. As everyone is understandably busy arguing about tariffs and the rising cost of living, absent are larger conversations about unemployment. Perhaps we've all been desensitized following the mass government layoffs earlier this year. Regardless, April saw unemployment stand firm at a raised 4.2%, according to the US Bureau of Labor Statistics. Related: 18 Major Global Events That American Media Is Ignoring Right Now, And Why They Actually Matter To Us As a professional doomscroller, I find laughs in odd places, including in this clip of Trump saying, "You can have all the eggs you want. We have too many eggs. In fact, if anything, the prices are getting too low." If you've been to any grocery store, then you KNOW that eggs are STILL wayyyy more expensive than they used to be. Long gone are the days of a $2.99 carton of 12 eggs. Instead, carts hosted a dozen eggs for an average of $5.12 a pop. Trump: "You can have all the eggs you want. We have too many eggs. In fact, if anything the prices are getting too low." — Aaron Rupar (@atrupar) April 18, 2025 Newsmax / Twitter: @atrupar Gas hasn't changed too much throughout Trump's presidency so far. On average, it's continued to fall around the $3.20 mark, with this month clocking in at about $3.299 per gallon according to the US Energy Information Administration. Related: "I Am So Torn With What You Are Doing" — 11 Posts From MAGA Business Owners Who Are So Close To Getting It Hey! Some good news! Inflation has fallen for the third month in a row. CNBC reports an inflation rate of 2.3% in April (but you might not be feeling it, as tariff surcharges tack extra fees on to your regular shopping). YIKES. YIKES. YIKES. At the beginning of April, data showed that Trump's stock market had one of the worst starts under any president since 1950. Following Trump's "Liberation Day" and tariff policies, the market became so volatile that Wikipedia now has an official 2025 Stock Market Crash page. So it should come as no surprise that the Dow Jones fell once again in April — this time by 2.9% according to Statmuse. Trump's first 100 days have passed, and still no stimmy in sight. There were, however, reports that the Trump administration was reportedly considering offering Americans a $5,000 baby bonus to help increase birth rates in the US. That's about $277.78 a year! I'm sure that'll help cover the rising cost of childcare, food, rent, college, extracurriculars, healthcare, and everything else that comes with raising a child. *Sarcasm overload* And finally, we have Trump's approval rating. In April alone, Gallup put his rating at 44%. BUT! If you're looking at the approval rating for his first 100 days in office overall, the number dips to 40%, according to the Pew Research Center. Either way, more than half of the country is not satisfied. Those are our stats for April. Now, let's look at comments we received on our last edition in a little section I like to call ✨Comment Corner✨. Comment Corner #1: I love when y'all give me assignments. As a base number, Biden closed out his final full month as president in December with 100% ground beef costing an average of $5.58 per pound in the US, according to the US Bureau of Labor Statistics. Trump's numbers (including his 10ish days in January) so far are: January 2025: $5.50 per pound February 2025: $5.74 per pound March 2025: $5.85 per pound April 2025: $6.00 per pound Comment Corner #2: Hi! You must be new here. This report is meant to serve as a log of Trump's entire second-term presidency from Day One. I didn't set out thinking a country's entire economy could be perfected in a few months. I also didn't set out believing a few months was all Trump would need to put the US at a "very high" risk of recession, according to leading economists. A recession hurts us all. I am far from giddy watching my grandfather continuously tack on more years of work despite being far past retirement age. It's an ever-more common experience, and one I hope future generations can avoid. But we're not exactly trending in that direction. Comment Corner #3: I am always at your service. 🫡 See y'all next month! Want to know if Trump's economy is actually doing as well as he promised? Subscribe to the Economy Hate Watch newsletter and never miss our monthly update. Also in In the News: People Can't Believe This "Disgusting" Donald Trump Jr. Post About Joe Biden's Cancer Diagnosis Is Real Also in In the News: Miss USA's 2024 "National Costume" Has Been Revealed, And It's Obviously An Interesting Choice Also in In the News: One Body Language Expert Spotted Something Very Telling When Donald Trump "Held His Own Hand" At His Recent Press Conference
Yahoo
24-05-2025
- Business
- Yahoo
6 Mistakes Boomers Are Making With Their Money in the Trump Economy
As economic uncertainty grows months into President Donald Trump's second term, many baby boomers are making money moves that could jeopardize their retirement. Consider This: Find Out: From overreacting to market volatility to underestimating healthcare costs, these financial missteps are often fueled by short-term thinking or outdated advice. Here are six mistakes boomers are making with their money in the Trump economy. Christopher Stroup, the founder and CEO of Silicon Beach Planning, said outdated investment strategies could cause some boomers to make financial missteps. 'Boomers must shift from a 'set it and forget it' mindset to proactive financial planning,' Stroup said. 'The next decade will bring market fluctuations, tax policy changes and shifting retirement landscapes.' He explained, 'Many boomers are holding too much cash, assuming it's 'safe,' while inflation erodes their purchasing power. Others are clinging to outdated investment strategies, such as relying on bonds or dividends without adjusting for market volatility.' Experts said not saving enough for retirement and depending on alternative payment methods could hurt boomers. 'They have higher credit card debt than previous generations,' explained Chad Gammon, owner of Custom Fit Financial. Read Next: Recent stock market fluctuations in response to Trump's tariffs have unsettled many investors, particularly baby boomers who hold substantial equity. Some boomer investors are shifting towards conservative investments. While caution is understandable, it's crucial to avoid panic-driven decisions that could cost boomer investors long-term growth. 'It's easy to get caught up in near-term uncertainty and market volatility,' said Tom Buckingham, chief growth officer at Nassau Financial Group. 'But it is risky to make significant changes to your long-term financial plan and investment strategy based on the latest headlines.' According to recent research by Indeed Flex, an online marketplace for flexible and temporary work, over one-third of older adults are unsure whether they will retire this year due to the current economy and inflation. Researchers said, 'With only 10% retired, the three highs — the cost of living, housing prices and healthcare costs — may force the aging population to rethink retirement. Factor in economic uncertainty with Trump's proposed new tariffs on imports; boomers may need to delay retirement even longer.' For some boomers, delaying retirement is the smart move. However, older adults should consider whether delaying retirement aligns with their health and personal goals. Prices for everyday items could increase this year due to Trump's tariffs. 'Some near-term measures of inflation have recently moved up,' said Federal Reserve Chairman Jeremy Powell at a recent press conference. 'We see this in both market- and survey-based measures, and survey respondents, both consumers and businesses, are mentioning tariffs as a driving factor.' Erika Kullberg, a personal finance expert, said boomers should reassess their budgets to account for inflation. She also suggested delaying Social Security to maximize benefits and exploring tax-efficient investment strategies. 'Beyond that, things like downsizing to reduce housing costs, cutting unnecessary expenses and diversifying investments to include assets that tend to perform well in different economic conditions can help,' Kullberg said. Trump's proposal to eliminate federal taxes on Social Security benefits would primarily benefit wealthy older adults, since most middle-class taxpayers don't pay taxes on Social Security. Experts predict eliminating the Social Security tax could deplete the trust fund that pays for benefits and lead to a 30% decrease in benefits overall. 'Take a deep breath, stay calm and remain disciplined and well-diversified,' Buckingham said. 'Consider including low-risk investments and products as part of a well-rounded investment portfolio. Consider supplementing Social Security and pension benefits with annuities that guarantee income benefits for life.' The Trump administration said the Department of Government Efficiency (DOGE) proposals to eliminate 'waste and fraud in entitlement spending' would not reduce Social Security, Medicare or Medicaid benefits. However, experts said retirees should plan for emergency savings or explore supplemental insurance options to buffer against unforeseen events. 'Boomers are not taking sufficient notice of alternative funding strategies for healthcare,' said Neal Shah, CEO of CareYaya, an online caregiving platform serving older adults with dementia. 'With potential modifications to Medicare on the horizon, many aren't preparing for the costs of healthcare.' Shah explained, 'Health savings accounts (HSAs) and long-term care insurance should be priority considerations, as out-of-pocket healthcare expenses rise faster than general inflation.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why 10 Genius Things Warren Buffett Says To Do With Your Money Sources PR Newswire, Boomers Are Forced to Rethink Retirement The White House, FACT CHECK: President Trump Will Always Protect Social Security, Medicare This article originally appeared on 6 Mistakes Boomers Are Making With Their Money in the Trump Economy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fox News
24-05-2025
- Automotive
- Fox News
President Trump is making summer vacations great again
"I saw in their eyes something I was to see over and over in every part of the nation—a burning desire to go, to move, to get underway…" —John Steinbeck, "Travels with Charley: In Search of America" It was 65 years ago that John Steinbeck loaded up a GMC pickup with a new-fangled camper shell on top and hit the road to reconnect with America. The book that came out of that trip was the bestselling "Travels with Charley: In Search of America." As Steinbeck noted, "Nearly every American hungers to move." And now, America is back on the move again, in part due to the Trump economy and a more hopeful outlook on the future. Memorial Day travel by Americans could break a 20-year record this year. AAA expects an estimated 45.1 million people to travel at least 50 miles from home between May 22 and May 26. "We're projecting an additional one million travelers this holiday weekend compared to 2019, which not only means we're exceeding pre-pandemic levels but also signals a very busy summer travel season ahead," notes Paula Twidale, Senior Vice President of AAA Travel. And in their travels, Americans are celebrating the Trump economy—and their freedom. Lower gas prices are just the start. "The average cost of a gallon of regular gasoline hovered around $3.13 nationwide, according to AAA, down from $3.59 a gallon on Memorial Day in 2024," Fox News reports. Had either the Biden or Harris tickets prevailed last November, those numbers could look quite different. The Biden administration's war on domestic energy, including the former president's ham-fisted approach to gas prices, only led to energy prices. And that was the point—the Democratic agenda includes driving up energy prices to force Americans into electric vehicles and into the kind of "low-carbon" lifestyle they never seem to adopt themselves. Americans made their feelings clear on the Democrats' "expect less" agenda last November—by returning President Donald Trump to the White House in what amounts to a modern landslide. And it's not just energy prices. On Tuesday, the U.S. Bureau of Labor Statistics released the April inflation numbers, and the Trump economy beat expectations—delivering the lowest inflation rate since Joe Biden's first month in office. Leading up to the 2024 election, egg prices gained attention, following an outbreak of avian flu. Prices rose so high that they became a campaign issue. When prices remained high after the election, Democrats sought to blame Trump. Now, however, the price of eggs really is falling. In April, they came down an average of 12.4%, the most since 1984. So, more Americans will enjoy an omelet on their summer trip as they celebrate their feelings of being more hopeful about the future, despite the incessant media narrative. In 2024, conducted a poll that showed how the Biden economy was impacting family travel: "High cost-of-living is the leading dampener on travel plans for nearly three in five Americans (59%) saying it made them cut back. Similar proportions of Americans say they simply can no longer afford travelling (38%) or their circumstances have changed (37%)," the research group reported. But Americans are back on the road and their outlook is positive. For his part, Steinbeck knew what the open road meant to Americans. "A journey is a person in itself; no two are alike. And all plans, safeguards, policing, and coercion are fruitless. We find after years of struggle that we do not take a trip; a trip takes us," he wrote. Americans are getting back on the road—where they know, deep down, they belong.
CNN
16-05-2025
- Business
- CNN
Radio hosts discuss the economy and Trump's approval rating
Jeremy Hobson, host of "The Middle with Jeremy Hobson," and progressive talk show host Reecie Colbert join CNN's Pamela Brown for our weekly "Your Voice" segment to discuss how President Trump's handling of the economy is impacting his approval rating.
