Trump Tells GOP Hard-Liners to Stop 'Grandstanding,' End Gridlock

Trump kicked off the Great American State Fair on Wednesday. (Reuters)
By Yuval Rosenberg and Michael Rainey

Good evening. In a pair of 6-3 decisions along ideological lines, the Supreme Court today handed President Trump victories in two major immigration cases. The court's conservative majority allowed the administration to end temporary protected status for migrants from Haiti and Syria, a move that could allow the government to deport hundreds of thousands of people who have been living in the United States legally. The court also ruled that migrants arriving at the southern border with Mexico are not entitled to apply for asylum until they enter the United States. That decision could enable the administration to resume a more restrictive policy of turning away asylum seekers before they set foot in the country.

We'll be back in your inbox next week. Until then, here's what's happening.

Trump Tells House Republican Hard-Liners to Stop 'Grandstanding,' End Gridlock

One day after President Trump threw Congress into chaos and spoiled what was set to be a celebratory signing ceremony by refusing to sign a bipartisan housing bill unless lawmakers first pass his election-reform package, Speaker Mike Johnson headed to the White House to try to break the gridlock. After his meeting, Johnson said he's sending the housing bill to Trump's desk, starting a 10-day clock for the president to sign the measure, veto it or allow it to become law without his signature.

The president, meanwhile, called on House GOP hard-liners to back off a rebellion that had blocked legislative business.

Rep. Anna Paulina Luna and House GOP hard-liners had frozen the House floor in response to Trump's unexpected demand, announcing that they would block action on legislation until the Senate passes the SAVE America Act, the election-reform package. Senate Republican leaders insist that they don't have the votes to pass that bill, and the Senate left town Wednesday until July 13, meaning that the ultimatum from House conservatives threatened to halt much legislative business, including GOP priorities, for weeks. House Republican leaders already canceled planned Friday votes.

"Luna's floor blockade has risked collateral damage, including passage of fiscal 2027 appropriations bills and the annual Pentagon policy bill," Politico noted.

Trump tried to quell the rebellion. "House Republicans should unify, and stop voting down 'Rules' or, threatening to do so," he wrote on his social media site. "Giving power to the Radical Left Dumocrats in the House to control what goes up for a Vote will make our outcomes worse, not better. No more grandstanding, please!"

Luna said Thursday that she had filed an amendment to the annual defense policy bill that would attach the SAVE America Act to that key piece of legislation. "This is how to get my vote on a rule," she wrote in a post on X. But such a move would do nothing to advance the bill in the Senate, where Democrats could filibuster it.

The bottom line: "Congress has work to do, and that's what we're going to do," Johnson told reporters after his meeting with Trump. "It's another day at the office, you know, this is a process in an era with small margins, but we'll get the job done. We always do, and we'll see you guys on Monday."

Prices Jump Again in May, but Has Inflation Peaked?

A key measure of inflation rose in May, the Bureau of Economic Analysis reported Thursday, reflecting the ongoing economic impact of the war against Iran.

The Personal Consumption Expenditures price index, which is the preferred inflation measure of the Federal Reserve, rose 0.4% on a monthly basis and 4.1% on a yearly basis. The monthly reading was stable from the month before, but the annual number was higher than April's 3.8% reading and the highest since April 2023.

Perhaps more worrisome, growth in the core PCE index - which ignores volatile food and fuel prices - also accelerated, rising 0.3% on a monthly basis and 3.4% on a yearly basis. The core index provides a clearer sense of the underlying trend, and while the monthly reading was stable from April to May, the annual reading rose by a tenth of a percentage point, indicating that upward pressure on prices is significant and rising, even if energy prices are ignored.

Almost over or more to come? Many economists think headline inflation likely topped out in May, when oil and gasoline prices hit highs during the war with Iran. Since then, as the war has wound down, oil prices have dropped 30% or more. That drop should be reflected in the June inflation numbers.

"It is highly likely that inflation peaked in May, given the sharp 38.8% decline in West Texas Intermediate oil prices from its May apex, so one should expect a negative month-over-month print across the June inflation data," said Joseph Bruseulas, chief economist at RSM, in a research note. "This means the 0.4% month-over-month increase and 4.1% advance in inflation from one year ago is a stale number."

That doesn't mean that consumers are out of the woods just yet, though. For one thing, the higher prices generated by past inflation are here to stay, with no relief in sight. "This is painful for the middle class and moderate income Americans," said Heather Long, chief economist at Navy Federal Credit Union. "The monthly gain (0.4%) was a bit softer than expected, but the key will be how fast does inflation cool this summer?"

The core PCE inflation numbers indicate that there is more inflation in the pipeline, suggesting that inflationary pressure could be stubborn and slow to dissipate. Even as oil prices retreat, the cost of other essentials including healthcare and insurance continues to rise, with no signs of easing.

On top of that, the massive buildout of artificial intelligence infrastructure appears to be adding more inflationary pressure to the economy. Apple shares fell sharply Thursday after the company warned that its costs were rising due to the skyrocketing price of memory chips, which are being gobbled up by AI firms. Higher tech prices could ripple through the economy, touching on a wide variety of sectors.

RSM's Brusuelas said that when all the factors - which also include higher defense spending and the ongoing effects of elevated tariffs - are taken together, the likely result is "a challenging core inflationary picture going forward."

That could be a problem for the Federal Reserve as it crafts monetary policy in the coming months, and it's a major reason that some analysts believe that the central bank could raise interest rates at some point later in the year.

The bottom line: Inflation may have peaked, but it could be quite some time before the inflation rate comes back down to the Fed's 2% target.

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US Economy Grew at a Surprising 2.1% Rate in First Quarter

The Bureau of Economic Analysis revised its estimate of real economic growth for the first quarter of 2026 to 2.1%, sharply higher than the previous estimate of 1.6% and a big improvement over the lackluster 0.5% growth rate recorded in the final quarter of 2025.

The change was driven largely by a downward revision to import numbers (imports are subtracted from GDP). Investment was revised higher, with government and exports also playing a positive role, but growth in consumer spending was revised sharply lower, from 1.6% to an anemic 0.5%.

Gregory Daco, chief economist at EY-Parthenon, said the report shows that demand is somewhat soft, "with consumer spending increasingly supported by a drawdown in savings, greater use of credit and household wealth."

"Overall, the U.S. economy remains resilient, but the foundation of growth has become narrower," Daco said in a research note. "Interest-rate-sensitive sectors continue to struggle under elevated financing costs, while an income squeeze driven by slower wage growth and higher inflation is constraining consumer spending. Business investment has strengthened, supported by AI-related capital spending, but housing activity remains in the doldrums."

Trump's Major Construction Projects Could Cost More Than $1.2 Billion: Report

President Trump's litany of construction projects at the White House and around the nation's capital could cost more than $1.2 billion, according to an analysis by The New York Times. Some of the costs and funding sources remain unclear, but the construction binge is set to involve significant expenses for taxpayers, the Times says.

The new tally of estimated costs for 18 major construction projects includes:

  • $400 million for Trump's White House ballroom;
  • another $400 million for the related ballroom bunker and security center;
  • $250 million for renovations to the Kennedy Center for the Performing Arts; and
  • $16 million for the Lincoln Memorial reflecting pool.

Trump's planned "National Garden of American Heroes" is projected to cost at least $40 million, and potentially far more. Paving over the White House Rose Garden cost some $2 million.

Those projects have all received considerable public attention and scrutiny, but the list also includes some lesser-known plans.

"The National Park Service is restarting eight fountains in Washington that were broken and dry for extended periods," the Times reports. That's estimated to cost $58 million. The administration has awarded a $17.4 million no-bid contract to renovate Lafayette Park. Painting the Eisenhower Executive Office Building is projected to cost $7.5 million. Gilding four statues near the National Mall is set to cost more than $5 million.

Trump has also launched or discussed a series of projects for which the costs are not clear, including other White House renovations and his controversial triumphal arch, which reportedly could run more than $100 million.

For more details about the projects and funding sources, see the full piece at The New York Times.

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