Markets Plunge Amid Tariff Concerns as Spending and Ukraine Talks Take Center Stage

Featured & Cover Markets Plunge Amid Tariff Concerns as Spending and Ukraine Talks Take Center Stage

President Donald Trump remained off-camera today, an unusual move for him, as the U.S. stock market experienced a sharp decline. This drop followed Trump’s reluctance to rule out the possibility of a recession. When questioned about the market downturn, the White House attributed the president’s economic policies to increased investment and emphasized his first-term economic track record. However, the primary factor behind the market selloff was growing uncertainty over the impact of Trump’s tariffs.

As a deadline looms, a potential government shutdown is becoming a pressing concern. The president has urged Republican lawmakers to maintain unity and support a temporary funding measure before Friday’s cutoff to prevent a shutdown. Meanwhile, House Democratic Leader Hakeem Jeffries has advised his party members to oppose the proposal. This opposition puts Republican Speaker Mike Johnson in a precarious position, as his slim majority in the House leaves little margin for error.

On the international stage, discussions about the Ukraine war are gaining momentum. U.S. Secretary of State Marco Rubio stated that the U.S. wants to understand what compromises Ukraine might be willing to consider in negotiations with Russia. His remarks came just ahead of a crucial meeting between U.S. and Ukrainian officials in Saudi Arabia, where these potential concessions will be discussed.

Judge Rules DOGE Likely Subject to FOIA Requests

A federal judge determined Monday that the U.S. Department of Government Efficiency (DOGE) is likely subject to the Freedom of Information Act (FOIA), a law designed to promote transparency by allowing the public to access government records.

The decision, issued by U.S. District Court Judge Casey Cooper, represents a significant victory for watchdog organizations and others seeking insight into DOGE’s operations. The department, which has been instrumental in President Trump’s efforts to revamp federal bureaucracy, is spearheaded by Elon Musk.

Despite the ruling, the immediate release of DOGE records remains uncertain. The government has the option to appeal Cooper’s decision, which could delay the disclosure of documents requested by the Citizens for Responsibility and Ethics in Washington (CREW), the group that filed the lawsuit.

In the meantime, Cooper has issued a preservation order requiring the administration to safeguard the records CREW has requested. Should DOGE fail to take proper measures to retain its documents, it could face legal consequences, including contempt charges.

The judge found that the Trump administration failed to counter the argument that DOGE possesses “substantial independent authority,” thereby making it subject to FOIA regulations. He pointed out that Trump’s executive orders related to DOGE appeared to “endow USDS with substantial authority independent of the President.” Additionally, public statements from both Trump and Musk suggested that DOGE was actively exercising significant decision-making power.

Rejecting claims that DOGE merely serves in an advisory capacity, Cooper noted Musk’s frequent social media posts boasting about the agency’s sweeping changes. “These statements and reports suggest that the President and USDS leadership view the department as wielding decision-making authority to make cuts across the federal government,” Cooper stated.

GOP Faces Internal Divide Over Stopgap Spending Bill

Two conservative Republican lawmakers informed CNN on Monday that they currently oppose a House GOP proposal to fund the government through September. Their opposition signals a potential hurdle for Speaker Mike Johnson and President Trump, who must rally enough support within their own party to pass the bill and avert a shutdown.

With House Democrats expected to vote against the legislation, Johnson can only afford one Republican defection. However, GOP Representative Thomas Massie has already stated his opposition, making the margin for error even smaller. If Congress fails to approve funding legislation by the end of the week, the government will shut down after 11:59 p.m. ET on Friday.

Republican Representatives Tim Burchett and Rich McCormick expressed reservations about the bill, although they have not yet spoken with Trump directly. “Currently, but I’d like to talk some more,” Burchett remarked when asked about his stance. He emphasized his concern about military spending and called for greater oversight.

The Tennessee lawmaker acknowledged that he appreciates aspects of Johnson’s proposal, which includes $13 billion in domestic spending cuts and an additional $6 billion allocated for defense. However, he took issue with “the fact that they push it over to the war pimps at the Pentagon, once again.”

McCormick, representing Georgia, was more direct in his opposition. When asked if he would support the bill, he replied, “Nope.” He argued that extending current funding levels until the fiscal year’s end while postponing decisions on federal cuts gives excessive power to the executive branch, circumventing the constitutional appropriations process.

When pressed on whether he was firmly against the bill, McCormick remained noncommittal. “No, I refuse to paint myself into the corner,” he said.

Kennedy Moves to Close FDA Loophole on Food Safety

Robert F. Kennedy Jr., who serves as the U.S. Secretary of Health and Human Services, announced Monday that he has instructed the acting commissioner of the Food and Drug Administration (FDA) to take steps toward eliminating a controversial regulation known as Generally Recognized As Safe (GRAS).

This rule, part of the Federal Food, Drug, and Cosmetic Act, allows certain food additives to bypass premarket approval requirements if experts have determined them to be safe for consumption. The FDA states that substances intentionally used as food additives must receive approval “unless the substance is generally recognized, among qualified experts, as having been adequately shown to be safe under the conditions of its intended use.”

Initially, the GRAS designation was intended for common ingredients such as sugar, vinegar, and baking soda. However, in the late 1990s, the FDA found itself overwhelmed by an increasing number of requests for additive approvals. To manage this, the agency implemented a voluntary GRAS notification program to ensure that these ingredients remained safe for their intended use.

The voluntary nature of this system, however, has led to concerns about regulatory oversight. The FDA itself has acknowledged that this guidance “does not establish legally enforceable responsibilities.” Critics argue that manufacturers can exploit this loophole by introducing new additives into food products without formally notifying regulators.

A 2022 study by the Environmental Working Group revealed that since 2000, nearly 99% of newly approved food-contact chemicals were cleared by the food and chemical industries rather than the FDA. Over this 22-year period, food manufacturers requested FDA approval for a new chemical only 10 times, according to the analysis.

“By 1997, FDA had tentatively concluded that it could no longer devote substantial resources to the GRAS affirmation petition process,” the agency states on its website. This led to the establishment of the voluntary notification program, which has since been criticized for lacking sufficient regulatory enforcement.

Kennedy’s move to eliminate GRAS could mark a significant shift in food safety policy, closing a loophole that has allowed manufacturers to introduce additives with minimal oversight.

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