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PETER NAVARRO: Powell’s shadow Fed majority could threaten jobs, housing and growth
Kevin Warsh has now been sworn in as the new Federal Reserve Chair. Outgoing Chair Jerome Powell has refused to leave the Fed Board of Governors, breaking with the modern custom that departing Fed chairs leave the Board rather than linger as rival power centers.
The clear danger: Powell will have enough Board support to act as Fed Shadow Chair and force a series of rate hikes down Warsh’s throat.
Never mind that even a single rate hike would be the worst possible response to an oil-price shock. Never mind that two of Jay Powell’s predecessors understood the difference between demand inflation and an oil shock.
When Iraq invaded Kuwait in 1990, Alan Greenspan understood that an oil shock can both raise headline inflation and damage growth. His FOMC repeatedly cut the federal-funds rate as the economy weakened.
TRUMP’S FED CHAIR PICK KEVIN WARSH IGNITES FIGHT OVER INDEPENDENCE ON CAPITOL HILL
When oil, foodstuffs, fertilizers, and industrial metals all moved sharply higher in 2008 — driven by booming emerging-market demand, constrained supply, thin spare capacity, and speculative flows — Ben Bernanke’s Fed likewise cut the federal-funds rate in April. He then held steady in June and refused to launch a recessionary rate-hike campaign into prices the Fed could not drill, refine, mine, plant, or ship away.
That is the looming central error. The Fed cannot produce one extra barrel of oil. It cannot reopen a shipping lane. It cannot refine gasoline. It cannot lower diesel costs by crushing mortgage demand in Ohio or forcing a small manufacturer in Pennsylvania to roll over credit at punitive rates.
A Fed rate hike now would rein in demand in response to a supply shock and hit precisely where the economy is already vulnerable. Housing would weaken further. Interest-sensitive manufacturing would suffer. Small-business credit would tighten. Financial conditions would tighten just as energy prices are eating real incomes. The dollar could strengthen, pressuring exporters.
Memo to the Fed: An oil shock already acts like a tax increase. It takes money out of household budgets, raises transportation costs, compresses margins and slows real activity. If the Fed layers another rate hike on top of that, it does not solve the oil problem. It simply adds a credit shock to an energy shock.
Why do that when bond market vigilantes are already doing the contractionary policy work. A 30-year Treasury yield north of 5% and a ten-year north of 4.5% is not loose money. Mortgage rates, corporate borrowing costs and duration-sensitive assets are already feeling the heat. In that weather, the central bank does not need to prove its toughness or independence by firing another round into the hull of the ship.
Nor are the April inflation reports an argument for panic. Core PPI came in a bit hot at 4.4% but core CPI was 2.8%. Neither number justifies treating an energy-led commodity shock as a demand-side emergency.
The right question is whether the oil spike will spill into elements of the core and create second-round wage-price dynamics. We have a long way to go before we will know, and the Fed should not be in the business of playing worst case scenario games.
Instead, the Fed’s job is as it always should be, to keep inflation expectations anchored while preserving maximum employment. As long bond yields rise, risk shifts increasingly to the recession side — as Greenspan and Bernanke long ago understood.
That’s where the specter of Powell as Shadow Chair rears its ugly head: Three Biden-appointed governors — Philip Jefferson, Michael Barr, and Lisa Cook — remain in place. Powell and this Biden trio can now already form a four-vote majority on the seven-member Board. Bad enough.
If Trump appointee Christopher Waller proves to be the pivotal defector, as he is signaling, this would turn Powell’s Shadow Chair majority into a rout. Warsh would have the title. Powell would control the reaction function.
And the regional Fed presidents in Cleveland, Minneapolis, and Dallas — Beth Hammack, Neel Kashkari, and Lorie Logan — are already forming the chorus line for a possible hawkish pivot.
It is by this Shadow Chair math that Kevin Warsh — and the American economy — may get boxed in. If Powell, his Biden-era allies, and the regional hawks force a rate-hike campaign into an oil shock, they will not be defending the Fed’s credibility or proving its independence. They will be adding a credit shock to an energy shock — and proving only recklessness. The bill will come due not in the Eccles Building, but in factories, homes, small businesses, and export markets across America.
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Supreme Court Delivers Emergency Decision – It’s Finally Happening
President Donald Trump scored another significant legal victory Monday after the U.S. Supreme Court sided with his administration in a case challenging controversial Biden-era energy regulations that critics say would have reduced consumer choice and driven popular appliances out of the marketplace.
The ruling marks the latest setback for former President Joe Biden’s regulatory agenda and comes as the Trump administration continues working to roll back federal rules that conservatives argue placed unnecessary burdens on businesses and American consumers.
In *American Gas Association v. Department of Energy*, the Supreme Court vacated a lower court ruling that had upheld Biden administration regulations targeting non-condensing furnaces and commercial water heaters. The decision sends the case back for further review and opens the door for the Trump administration to pursue a different approach.
At the center of the dispute were Department of Energy efficiency standards that industry groups argued would effectively eliminate certain categories of gas-powered appliances by making compliance nearly impossible.
The American Gas Association and a coalition of trade organizations challenged the regulations, contending that the federal government had exceeded its authority and ignored statutory protections designed to preserve consumer choice.
Solicitor General John Sauer, representing the Trump administration, argued that federal law does not permit regulators to wipe out entire classes of products through aggressive efficiency mandates.
“The Department may not adopt standards that effectively eliminate from the market products that have distinct ‘performance characteristics,’” Solicitor General John Sauer wrote in a brief to the high court.
The Supreme Court ultimately agreed that the lower court should reconsider its ruling, delivering an important win for businesses, manufacturers, and consumers who opposed the regulations.
The Trump administration has already indicated that it intends to revisit the rules entirely.
“The Department has determined that the rules at issue are factually and legally flawed, and the agency is considering a new rulemaking in which it would correct those errors,” Sauer wrote.
The decision represents another major blow to Biden’s environmental and energy agenda, which frequently sought to use federal agencies to push stricter efficiency standards across a broad range of household products and appliances.
The legal victory comes just days after Republicans in the House of Representatives approved legislation targeting another Biden-era regulation that became a symbol of government overreach for many Americans.
Lawmakers voted 226-197 to pass the Saving Homeowners from Overregulation with Exceptional Rinsing Act, commonly known as the SHOWER Act.
The legislation attracted support from 11 Democrats and aims to reverse restrictions affecting multi-nozzle shower systems.
Republicans argued that Biden administration regulations unnecessarily reduced water pressure by limiting the combined flow rate of multiple shower heads connected to a single fixture.
Representative Russell Fry of South Carolina, who introduced the legislation, framed the issue as one of personal freedom and consumer choice.
“Washington bureaucrats have gone too far in dictating what happens in Americans’ own homes,” said Rep. Russell Fry (R-SC) who sponsored the legislation.
“This is about defending consumer choice, pushing back on regulatory overreach, and standing up for commonsense policy,” Fry added.
Supporters of the legislation argued that the rule reflected a broader pattern of federal agencies attempting to regulate everyday aspects of American life.
“It seems like the Democrats want to tax you out of existence and overregulate you,” said Rep. John McGuire (R-VA). “So, this is a step in the right direction. Less regulation.”
The SHOWER Act would permanently codify an executive order signed by President Trump that restored a more consumer-friendly interpretation of federal law. Under Trump’s order, each nozzle in a multi-head shower system is treated individually rather than having all nozzles combined under a single flow-rate limit.
House Energy and Commerce Committee Chairman Brett Guthrie praised the legislation as a practical solution that returns decision-making power to consumers.
“By codifying how different nozzles are categorized, the SHOWER Act offers a commonsense fix that will allow households to choose what meets their needs, not what Washington mandates,” said Rep. Brett Guthrie (R-KY) chairman of the House Energy and Commerce Committee.
Fry echoed those concerns and argued that the Biden administration’s approach had become a symbol of excessive federal interference.
He said, “The SHOWER Act reaffirms that each nozzle is a shower head — plain and simple — and that homeowners, not the federal government, should decide how much water pressure they want.”
Taken together, the Supreme Court’s ruling and the House vote represent major victories for President Trump’s broader effort to reduce federal regulations, expand consumer choice, and rein in what supporters view as years of bureaucratic overreach by Washington agencies.
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Trump Sends Haters Into Full Meltdown With Who He Brought To NBA Game
President Donald Trump made a high-profile appearance Monday night at Madison Square Garden as the New York Knicks hosted Game 3 of the NBA Finals, bringing national attention to an already historic evening for New York City.
The Knicks entered the game with a commanding 2-0 series lead over the San Antonio Spurs and stood just two victories away from capturing their first NBA championship in decades. The matchup marked the first NBA Finals game played at Madison Square Garden since 1999, creating enormous excitement throughout the city.
Security around the arena was significantly heightened as President Trump attended the game alongside members of his administration, close advisers, and longtime allies. The increased security presence came just one day after six people were injured during a stabbing incident at nearby Penn Station, located directly beneath Madison Square Garden.
The president arrived to a packed arena and watched the game from a private suite alongside a number of prominent administration officials and advisers.
Among those reportedly attending with the president were:
Sec. Sean Duffy
Sec. Doug Burgum
Administrator Lee Zeldin
Deputy COS Dan Scavino
Jared Kushner
Envoy Steve Witkoff
Walt Nauta
Boris Epshteyn
Natalie Harp
🔥 BREAKING: PRESIDENT TRUMP just WALKED OUT to look over the NBA Finals at Madison Square Garden
There he is, 47 becomes the FIRST US sitting president to attend the Finals in history 🇺🇸
The man is peak New York, in his element! pic.twitter.com/4ZFo616Z7m
— Eric Daugherty (@EricLDaugh) June 9, 2026
The appearance highlighted Trump’s continued visibility on the national stage while also underscoring his deep connection to New York City, where he built his business career long before entering politics.
Meanwhile, as the president attended one of the biggest sporting events of the year, he continued drawing attention to another issue that has become a central focus of his administration: election integrity.
Trump has repeatedly criticized California’s election system as state officials continue counting ballots from last week’s primary elections. The prolonged counting process has reignited debate over election administration and voter confidence in the nation’s most populous state.
The controversy intensified after U.S. Attorney Bill Essayli disclosed that the Department of Justice has spent more than a year attempting to review California’s voter registration records.
“For over a year, the Department of Justice has been trying to audit California’s voter rolls,” Essayli said.
“Federal law gives the Attorney General the authority to review state voter files and confirm that only eligible U.S. citizens are voting in federal elections,” he added.
The dispute comes as California election officials continue processing large numbers of ballots days after polls closed. Unlike many states that report nearly complete election results within hours, California’s system routinely requires days or even weeks to finalize outcomes.
The lengthy process has fueled concerns among many voters who question why election results remain unresolved long after Election Day.
Essayli also highlighted several aspects of California’s voter registration policies that have attracted attention from federal officials.
Among the forms of identification accepted for certain voter registration purposes are gym membership cards, employer identification cards, credit and debit cards, prescription drug labels, and insurance cards.
Critics argue that such policies deserve closer scrutiny, while supporters maintain that safeguards are already in place to protect election integrity.
The issue has also renewed discussion surrounding the SAVE America Act, legislation supported by many Republicans that would establish nationwide proof-of-citizenship requirements for federal voter registration.
California officials continue to defend the state’s election system and insist that existing safeguards adequately protect the voting process. They also maintain that there is no evidence that widespread non-citizen voting has affected election outcomes.
Nevertheless, the Justice Department’s ongoing efforts suggest that federal scrutiny of California’s election practices is likely to continue in the months ahead.
As President Trump watched the Knicks pursue a championship before a national audience, the broader debate over election security, voter roll maintenance, and ballot-counting procedures remained front and center in American politics.
For the administration, both issues reflect themes that have become central to Trump’s presidency: public safety, government accountability, and restoring confidence in institutions that many Americans believe deserve greater transparency.
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Iran Makes Shocking Admission About Trump’s Strike On Ayatollah
New details released by Iran’s own foreign minister are shedding light on the operation that eliminated Supreme Leader Ali Khamenei and reshaped the balance of power in the Middle East.
The account, offered by Iranian Foreign Minister Abbas Araghchi during a televised interview, provides one of the clearest descriptions yet of the strike that launched Operation Epic Fury. According to counterterrorism experts, the remarks serve as powerful evidence that the joint U.S.-Israeli operation was not designed to indiscriminately destroy an entire complex but instead to surgically target the leadership at the center of Iran’s regime.
Araghchi revealed that he survived the February 28 strike because he was located in a different section of Khamenei’s compound when the attack occurred.
“Well, the building we were sitting in was targeted, but the wing we were in remained intact while the other wing of the building was destroyed,” Araghchi said in an interview that aired June 4 on the Lebanon-based, Hezbollah-backed Al Mayadeen television network.
The revelation immediately drew attention from military analysts, who pointed to the extraordinary accuracy required to destroy one section of a heavily protected compound while leaving another standing.
According to Araghchi, Khamenei was in his office at the time of the attack. Other officials inside portions of the compound also survived because they were not located in the targeted area.
Dr. Omar Mohammed, a counterterrorism expert and director of the Antisemitism Research Initiative at George Washington University’s Program on Extremism, said the description confirms what many military observers suspected from the beginning.
“In the Arabic version, Araghchi says he was in a different wing of the compound, briefing another official, and his wing survived while the leader’s office was destroyed,” Mohammed explained.
Araghchi also disclosed that he had arrived at the compound for a meeting related to negotiations in Geneva and indicated that Khamenei was expected to be present in his office according to standard procedures.
Based on those details, Mohammed argued that the operation demonstrated an unprecedented level of intelligence gathering and precision targeting.
“They did not flatten a building; they took one wing and left the one next to it standing. That is President Trump’s whole doctrine in a single strike — he does not want a war of occupation, he wants to show the United States can reach the center of a hostile regime with precision and then offer it a way out,” Mohammed said.
Military officials later confirmed that the strike involved Israeli aircraft employing dozens of precision-guided munitions alongside advanced air-launched ballistic missiles. The attack reportedly killed Khamenei, Defense Minister Amir Nasirzadeh, IRGC Commander Mohammed Pakpour, and several additional senior security officials.
President Trump later publicly acknowledged U.S. involvement in the operation.
“He was unable to avoid our intelligence and highly sophisticated tracking systems, and, working closely with Israel, there was not a thing he or the other leaders killed alongside him could do,” the president wrote.
Mohammed believes the strike sent a message that Tehran should have immediately understood.
“Iran was handed the clearest message an adversary can get — we can reach your leader in his own office, and here is the off-ramp,” Mohammed noted. “A rational state takes the exit. Tehran did the opposite. It fired on Israel, killed a civilian in Bahrain, struck Kuwait, Qatar and the United Arab Emirates, and closed the Strait of Hormuz, setting off a global energy crisis. The surgical strike was American. The months-long war that followed was Iran’s choice.”
Following Khamenei’s death, leadership passed to his son, Mojtaba Khamenei, a transition that Mohammed believes revealed deeper contradictions within Iran’s political system.
“In Arabic, Araghchi calls the new leader ‘the young Khamenei in place of the elderly Khamenei.’ That is the language of a monarchy, not a republic of clerics,” Mohammed observed. “They are rewriting the theology on air to fit a son who lacks the religious rank, who was wounded in the same strike and who then vanished for weeks. A revolution that came to power by ending a monarchy is handing the throne from father to son.”
For many analysts, the operation has become a defining example of President Trump’s national security philosophy: use overwhelming precision to neutralize threats, avoid prolonged military occupations, and leave adversaries with a clear opportunity to de-escalate.
“The real story is not that Iran is strong,” Mohammed continued. “It was shown the precision of American power and the door was held open, and it chose to widen the war instead.”
Araghchi’s account appears to reinforce what American and Israeli officials have maintained from the start. The strike was not an act of indiscriminate destruction. It was a carefully planned operation aimed directly at the leadership of one of America’s most persistent adversaries, demonstrating both the reach and precision of modern U.S. military capabilities.
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