The Middle East conflict wiped out what would have been a modest upgrade to global growth and a stable inflation picture. - That has been replaced with a fresh warning about soaring energy costs and U.S. prices, which are projected to run far hotter than expected. Why it matters: What was a more manageable inflation story now looks like a pressure test for central banks that may need to raise interest rates — or hold off on further cuts — even as growth weakens. - Governments already carrying huge debt loads might need to spend more to cushion the blow for households. What they're saying: "The energy price surge and the unpredictable nature of the evolving conflict in the Middle East will raise costs and lower demand, offsetting…
House Speaker Mike Johnson (R-La,), Freedom Caucus members and other FISA-skeptical lawmakers went to the White House this morning for a briefing on reauthorizing the surveillance authority, four sources told Axios. Why it matters: Johnson may not have the votes to pass a clean extension of Section 702 of the Foreign Intelligence Surveillance Act — a must-pass bill the White House is pressing to renew. - GOP leaders and President Trump are pushing hard for an 18-month reauthorization. - But conservatives are demanding changes, putting Johnson in a familiar bind when it comes to getting the rule passed . Driving the news: Members received a briefing Tuesday night on Capitol Hill that got heated, as conservatives demanded warrant…
President Trump said Wednesday he won't call the conflict in Iran a "war" because "you are supposed to get approval," suggesting the label itself could trigger congressional authority the administration says it doesn't need. The big picture: But the fiery operation has been widely characterized as a war (one that's cost hundreds of lives and billions of dollars ), including by the president himself as recently as Thursday. - The comment is the latest example of the administration sending mixed signals about the U.S. goals and timeline of the war. Driving the news: "They say, 'if you use the word 'war', that's maybe not a good thing to do,'" he said at an event for House Republicans' campaign arm, instead calling the conflict a…