Authored by Greg Collard and James Rushmore via Racket News,

Following Trump 2.0 is a difficult task. There has been no calm in President Trump’s first three months. He even generated controversy on Easter Sunday (then again, so did Joe Biden last year when he proclaimed it Transgender Day of Visibility).

Besides Trump’s Happy Easter social media post, there was also news Sunday regarding his much-maligned secretary of defense, Pete Hegseth.

Call it Signalgate 2.0. The New York Times reports that his wife, brother (a Pentagon employee), and personal lawyer were part of a Signal group chat that Hegseth initiated about the March 15 attack on the Houthis. The sources are “four people with knowledge of the chat.” From the Times:

Some of those people said that the information Mr. Hegseth shared on the Signal chat included the flight schedules for the F/A-18 Hornets targeting the Houthis in Yemen — essentially the same attack plans that he shared on a separate Signal chat the same day that mistakenly included the editor of The Atlantic.

The Times had an update on Tuesday — this time from “an official and a person familiar with the conversations” — with a report that the attack plans Hegseth texted on Signal “came from U.S. Central Command through a secure, government system designed for sending classified information.”

Trump doesn’t seem to care. He called it a waste of time to address the Signalgate controversy and added:

“He’s doing a great job — ask the Houthis how he’s doing.”

U.S. attacks against the Houthis have killed about 120 people. The latest, last Thursday, killed 74.

As for Hegseth, he pulled out a version of the same playbook he used last month when Signalgate 1.0 broke. He noted the media’s culpability in pushing the Russia hoax, and also blamed recently-fired staffers.

.@SecDef Hegseth on “Signal chat controversy”: “What a big surprise that a few leakers get fired and suddenly a bunch of hit pieces come out from the same media that peddled the Russia hoax, won’t give back their Pulitzers, they got Pulitzers for a bunch of lies … This is what… pic.twitter.com/qYH8O98EtX

— CSPAN (@cspan) April 21, 2025

What a big surprise that a few leakers get fired and suddenly a bunch of hit pieces come out from the same media that pedaled the Russia hoax [and] won’t give back their Pulitzers. They got Pulitzers for a bunch of lies, Pulitzers for a bunch of lies, and on hoaxes time and time and time again. And as they pedal those lies, no one ever calls ’em on it. See, this is what the media does.

National Security Adviser Michael Waltz formed the first Signal group chat that included The Atlantic’s editor, but Hegseth has also been heavily criticized for texting specific attack plans on the messenger service.

The White House maintains that nothing in that group chat was classified (National Security Director Tulsi Gabbard called the texts “candid and sensitive”) but that did not calm the concerns of people like Sarah Streyder of the military families group Secure Families Initiative. She told Newsweek:

Leaked war plans aren’t just a breach of national security in some impersonal way. They’re really a direct threat, both to the safety of service members and for us as military families, those are our parents, our spouses, our kids who now have increased risk and targets on their back.

Here’s a look back at many of the highlights — or, depending on your point of view, lowlights — and multitude of controversies in the first three months of Trump 2.0.

Deportations

AG Pam Bondi sets the record straight on Kilmar Abrego Garcia:

“First and foremost he was ILLEGALLY in our country—he had BEEN illegally in our country. And in 2019, TWO courts…ruled that he was a member of MS-13.” pic.twitter.com/FmmkB9gNz5

— Townhall.com (@townhallcom) April 14, 2025

The most high-profile deportation case has been that of Kilmar Armando Abrego Garcia, a Salvadoran man who was legally in the U.S. since 2019. However, in the words of a Justice Department attorney, an “administrative error” resulted in him being deported to El Salvador.

Still, the Trump administration is arguing against his return because it claims Abrego Garcia is a member of the MS-13 gang — which he denies — and says it has no control over what El Salvador does.

The Trump administration has refused to follow court orders to do what it can to return Abrego to the U.S., prompting concerns of a constitutional crisis. The federal judge in the case made clear in an order Tuesday that the administration has also failed to adequately respond to discovery requests from Abrego Garcia’s attorneys. Judge Paula Xinis granted that request to find out what’s been done to try to get him back to the U.S. She writes in her latest order:

For weeks, Defendants have sought refuge behind vague and unsubstantiated assertions of privilege, using them as a shield to obstruct discovery and evade compliance with this Court’s orders. Defendants have known, at least since last week, that this Court requires specific legal and factual showings to support any claim of privilege. Yet they have continued to rely on boilerplate assertions. That ends now. If Defendants want to preserve their privilege claims, they must support them with the required detail. Otherwise, they will lose the protections they failed to properly invoke.

Xinis set a deadline for 6 p.m. today for the government to provide all requested material.

You can read Racket’s detailed timeline, which includes court records, on the first month of the case here.

Meanwhile, the Abrego Garcia case has become especially politicized in the last week. Democratic Senator Chris Van Hollen of Maryland and four members of the House of Representatives have flown to El Salvador in the hopes of facilitating Abrego Garcia’s return, and the Department of Homeland Security posted on X documents that show Abrego Garcia’s wife sought a domestic violence protective order against him in 2021. Trump also posted this:

The image of the hand with “MS-13” on it has spurred accusations that the image was doctored, in part because the MS-13 symbols were never mentioned in court documents. Judge Xinis wrote in an April 6 memorandum opinion that in 2019, Homeland Security “relied principally on a singular unsubstantiated allegation that Abrego Garcia was a member of MS-13.”

REPORTER: The Alien Enemies Act has only been invoked during times of war. Do you feel you’re using it appropriately right now?

TRUMP: “This is a time of war — because Biden allowed millions of people, many of them criminals… that’s an invasion.” pic.twitter.com/m4ETySTWGP

— Open Source Intel (@Osint613) March 17, 2025

One of the most consequential policies of Trump’s second term has been his use of the 1798 Alien Enemies Act to target alleged members of the Venezuelan gang Tren de Aragua. It’s also another case in which President Trump has criticized the judge.

On April 19, the U.S. Supreme Court temporarily banned the administration from deporting a group of Venezuelans.

For more on the Alien Enemies Act, you can read our timeline in the Racket Library.

Border Security

President Trump signed two executive orders his first day in office to reduce illegal immigration. He also declared a national emergency to enable the military to help with border security.

The result: the number of southern border apprehensions in March — 7,181 — was the lowest since monthly data started being collected in 2000, according to Reuters. The previous low? About 8,300 in February 2025. That prompted Trump to declare “The Invasion of our Country is OVER”:

Apprehensions are not necessarily arrests. For example, they include requests for asylum. During the Biden administration, migrants could apply for asylum through an app. Trump canceled that app, as well as all asylum appointments upon taking office.

Border apprehensions started going down in February 2024, when there were about 140,500. There were roughly 47,000 in both November and December 2024. They went down to about 29,000 in January 2025. Here’s a look at border apprehensions since October 1, 2021, the start of the federal government’s 2022 fiscal year:

Student Visas — Revocations and Arrests

REPORTER: The Alien Enemies Act has only been invoked during times of war. Do you feel you’re using it appropriately right now?

TRUMP: “This is a time of war — because Biden allowed millions of people, many of them criminals… that’s an invasion.” pic.twitter.com/m4ETySTWGP

— Open Source Intel (@Osint613) March 17, 2025

It’s unclear how many student visas of international students have been revoked. Secretary of State Marco Rubio estimated 300 in late March. Inside Higher Ed reports more than 1,500 international students have lost their visas since April 7. It also has a map that breaks down the numbers by school.

The American Association of Immigration Lawyers says ICE has terminated the records of 4,700 international students since Trump took office. Some are fighting back in court.

Two high profile examples are Mahmoud Khalil and Rumeysa Ozturk.

ICE officers arrested Khalil on March 8. Khalil is a permanent U.S. resident from Syria who came to America on a student visa to attend Columbia University as a graduate student. He served as a lead negotiator for pro-Palestinian protesters. Shortly after his arrest, Khalil was transferred to Louisiana, where he is currently being held at the LaSalle Detention Center.

Two days later, Trump called Khalil “a Radical Foreign Pro-Hamas Student” and indicated that his apprehension would be “the first arrest of many to come.”

Khalil has not been charged with any crimes. A federal district court judge issued an order staying Khalil’s deportation, as well as ruling that his case be moved to New Jersey. Meanwhile, an immigration judge has upheld Secretary of State Marco Rubio’s authority to deport noncitizens. Here’s a Racket timeline on his case.

Homeland Security officers arrested Ozturk, a Tufts University graduate student from Turkey, on March 25. Like Khalil, Ozturk was transported to Louisiana. In a since-deleted X post, DHS Assistant Secretary for Public Affairs Tricia McLaughlin claimed that the DHS and ICE found that Ozturk had “engaged in activities in support of Hamas.”

A year earlier, Ozturk had co-authored an opinion piece in the Tufts student newspaper that was critical of the university’s response to a series of student government resolutions regarding the war in Gaza.

You can read a Racket timeline on her case here.

International relations

REPORTER: The Alien Enemies Act has only been invoked during times of war. Do you feel you’re using it appropriately right now?

TRUMP: “This is a time of war — because Biden allowed millions of people, many of them criminals… that’s an invasion.” pic.twitter.com/m4ETySTWGP

— Open Source Intel (@Osint613) March 17, 2025

Forget the WEF, the WTC, and WHO. After Ukrainian President Volodymyr Zelensky’s visit to Washington today, the new reigning international body is WTF! Did that really happen?

That was the appropriate opening to Matt Taibbi’s Feb. 28 take on Ukraine President Volodymyr Zelensky’s visit to the White House.

Zelensky challenged Vance’s assertion that the path to peace depended on diplomacy. This led Vice President JD Vance to accuse Zelensky of being disrespectful. Trump joined the tumult after Zelensky claimed that the U.S., in spite of its “nice ocean,” would “feel [the impact of the war] in the future.” Trump said the Ukrainian leader did not “have the cards right now” and accused him of “gambling with World War III.”

Following the meeting, Trump canceled the signing of a rare earth minerals agreement with Ukraine. However, in April, the U.S. and Ukraine signed a memorandum of intent that would pave the way for a revival of that agreement.

Preceding the Zelensky visit, Vance delivered a speech at the Munich Security Conference in which he criticized “the retreat of Europe from some of its most fundamental values.” Vance voiced concerns about the annulment of the Romanian presidential election, the European Union’s digital censorship, and the prosecution of a pro-life person praying outside an abortion clinic in the UK. He also called on Europe to increase its defense spending and become less dependent on the United States for its security.

The legacy media, of course, had some hilariously bad takes that Matt notes in this piece, After Vance Blasts Europe, the Mask Drops.

Tariffs

This could easily fall under International Relations or even Economic Policy, but we felt it warranted its own category, given how tariffs have been a constant theme throughout Trump’s second term — even before his “Liberation Day” announcement. From the on-again, off-again tariffs on Canada to his use of tariff threats as leverage with other countries, it’s been a defining feature of his approach.

Trump rocked the financial and international world on April 2 when he announced across-the-board tariffs of 10% and additional reciprocal tariffs against 57 countries the administration considers unfair traders. The president then paused the reciprocal tariffs on all countries except China just as they were about to take effect, while also increasing tariffs against China. He did that after China imposed tariffs of 84% on American products.

We’re now in a trade war that’s made Fed Chairman Jerome Powell hesitant to support lower interest rates. He’s worried about inflation caused by tariffs, while Trump is calling him a “major loser” for refusing to lower rates.

DOGE and Elon Musk

The Elon Musk-run Department of Government Efficiency says it’s saved $160 billion so far. Racket has produced timelines on cuts to the Department of Health and Human Services and the Department of Education, which are ranked #1 and #3 on DOGE’s “Agency Efficiency” leaderboard.

The pushback has been intense, with many critics saying Musk has more influence than President Trump. A Feb. 3 piece in The Atlantic is a good example:

He did not receive a single vote. He did not get confirmed. He does not receive a government paycheck.

The world’s richest man has declared war on the federal government and, in a matter of days, has moved to slash its size and reach, while gaining access to some of its most sensitive secrets. He has shaped the public discourse by wielding the powerful social-media site he controls and has threatened to use his fortune to bankroll electoral challenges to anyone who opposes him.

Elon Musk’s influence appears unchecked, triggering cries of alarm from those who worry about conflicts of interest, security clearances, and a broad, ill-defined mandate.

Musk and DOGE are a regular topic at protests, including the nationwide “Tesla Takedown” rallies that Racket covered through its Activism, Uncensored series. There have also been disturbing law-breaking reactions from critics.

But Trump has not wavered in his support of Musk and DOGE. Musk himself brushed off critics last month:

This is a revolution and I think it might be the biggest revolution in the government since the original revolution

However, Musk announced Tuesday his full-time status with DOGE will come to an end next month “now that the major work of establishing the Department of Government Efficiency is done.”

He’ll focus on Tesla — which reported declining profits Tuesday — but Musk says he will still “spend a day or two per week on government matters for as long as the president would like me to do so.”

Higher Education

The Trump administration has suspended federal money or threatened to do so against several universities over what it considers failures to address antisemitism and DEI programs the administration believes are discriminatory.

Harvard is the most notable. The Trump administration froze $2.2 billion in grants and a $60 million contract after Harvard refused to agree to a list of demands. The IRS is now reportedly looking at revoking Harvard’s tax-exempt status.

Harvard responded Monday with a lawsuit. The school’s president says the administration is trying to control “whom we hire and what we teach.”

Here’s a Racket timeline on the Trump administration’s standoff with Harvard.

Authored by Jackson Richman via The Epoch Times (emphasis ours),

Senate Minority Whip Dick Durbin (D-Ill.), the longest-serving U.S. senator in Illinois history, announced on April 23 that he will not run for reelection next year, capping a career of more than four decades in Congress.

“The decision of whether to run for re-election has not been easy. I truly love the job of being a United States Senator. But in my heart, I know it’s time to pass the torch,” he said in a video posted on social media platform X.

“The challenges facing our country are historic and unprecedented. The threats to our democracy and our way of life are very real and I can assure you, I’ll do everything in my power to fight for Illinois and the future of our country every day of my remaining time in the Senate.”

The decision of whether to run for re-election has not been easy. I truly love the job of being a United States Senator.

But in my heart, I know it’s time to pass the torch.

So, I am announcing today that I will not be seeking re-election at the end of my term. pic.twitter.com/eiBTPjToFT

— Senator Dick Durbin (@SenatorDurbin) April 23, 2025

No formal decision has been made regarding Durbin’s successor as Democratic Party whip.

Durbin was first elected to Congress in 1982, succeeding Rep. Paul Findley (R-Ill.). He has served in the Senate since Jan. 3, 1997. During his tenure as Senate Democratic whip, Durbin helped pass the Affordable Care Act, economic stimulus packages, COVID-19 relief, the Inflation Reduction Act, and the Bipartisan Infrastructure Law.

He is credited with initiating the movement to ban indoor smoking. After watching his 53-year-old father die of lung cancer when he was 14, Durbin won approval in 1987 for legislation prohibiting smoking on short commercial flights, which he expanded to nearly all domestic flights two years later.

“People started asking, ‘If secondhand smoke wasn’t safe on airplanes, why is it safe in public buildings, schools, hospitals, or restaurants?’ The answer is simple: It’s not,” Durbin said on the 25th anniversary of the law.

Durbin also served as chairman of the Senate Judiciary Committee, where he is currently the ranking member. During his tenure as chairman, he oversaw the confirmation of Ketanji Brown Jackson to the Supreme Court and helped President Joe Biden break the record for most judicial appointments by a president.

Possible names of those who could run for Durbin’s seat include former Chicago Mayor and Ambassador to Japan Rahm Emanuel, Illinois Lt. Gov. Juliana Stratton, Illinois Secretary of State Alexi Giannoulias, and Reps. Darin LaHood (R-Ill.), Lauren Underwood (D-Ill.), and Raja Krishnamoorthi (D-Ill.), the ranking member of the House Select Committee on Strategic Competition between the United States and the Chinese Communist Party.

Possible candidates to run for Durbin’s seat include former Chicago Mayor Rahm Emanuel, Illinois Lt. Gov. Juliana Stratton, Illinois Secretary of State Alexi Giannoulias, and Reps. Darin LaHood (R-Ill.), Lauren Underwood (D-Ill.), and Raja Krishnamoorthi (D-Ill.), the ranking member of the House Select Committee on Strategic Competition between the United States and the Chinese Communist Party.

Durbin said that Illinois is fortunate to have “a strong Democratic bench ready to serve.”

Sen. Tammy Duckworth (D-Ill.) will be the senior senator from Illinois upon Durbin’s retirement.

The Associated Press contributed to this report.

India has suffered one of its worst terror attacks in recent years, after gunmen conducted mass killings in a picturesque and tourist-poplar spot in the disputed and Indian-administered region of Jammu and Kashmir on Tuesday.

The site’s location in the mountainous Anantnag district is so remote that it took at least half a day for casualty figures to emerge, but authorities have since announced that 26 people were killed. Most the dead were travelers visiting a popular tourist destination in the Baisaran Valley, which is only accessible by foot or horseback. A huge military rescue operation and search for victims ensued. 

Emerging eyewitness accounts indicated that men were separated from women and children by unknown armed militants which had descended on the area. The men, all civilians, were then asked their names before being executed at close range. 

Reuters describes that “About 1,000 tourists and 300 local service providers were in the Baisaran Valley – known as mini Switzerland for its lush hilltop meadow, surrounded by dense pine forests – when three gunmen launched the Tuesday attack, the worst, opens new tab in India in nearly two decades.”

The initial reaction of the Indian government was to point the finger at Pakistan, but without naming specific culprits responsible. Indian leaders have for decades accused Pakistan of knowingly harboring terrorists along the disputed border.

There’s also been anger and confusion at what’s clearly a major security lapse, given is Jammu and Kashmir is heavily militarized and patrolled by the Indian Army. India also suspects that it was a Pakistan-backed massacre conducted by Islamic extremists due to the sectarian nature of the attack, given almost all the victims were Hindu:

General Hooda said the fact that the victims were civilians, and that witness accounts in Indian media suggested Hindus had been singled out by the militants, had only added to the pressure. A list of the victims circulating online, which was verified by local officials in Kashmir, showed that 25 of the 26 killed were Hindus.

India’s Foreign Secretary Vikram Misri specifically charged Wednesday press conference that “cross-border linkages of the terrorist act” had been “brought out” – in a clear reference to Pakistan. Authorities have identified that 25 victims were Indian, and one a Nepali citizen. 

Traumatic experience of those tourists who saw Pahalgam terror attack in front of their eyes in Kashmir and managed to escape. Indian Army comes to the rescue. Heart goes out to all the victim families in India. We stand in solidarity with each one of you. pic.twitter.com/d8WeM0vuvM

— Aditya Raj Kaul (@AdityaRajKaul) April 22, 2025

Pakistan has vehemently denied that it was behind the killings, as it has prior such terror attacks. The country’s defense minister, Khawaja Muhammad Asif, declared in the aftermath that his country did not “support any form of terrorism” – but instead said “homegrown” elements were behind it.

A relatively unknown group calling itself The Resistance Front claimed responsibility in a social media post. It blamed “outsiders” who settled the region and caused a “demographic change” – strongly suggesting the terror attack was tied to Indian claims over the disputed region.

According to some eyewitness accounts featured in CNN:

“My husband was shot in the head while seven others were also injured in the attack,” one woman survivor said, according to PTI.

Another survivor, Asavari Jagdale, told PTI the gunmen came into the tent where her family was hiding. The attackers accused the family – hailing from India’s western Pune city – of supporting Indian Prime Minister Narendra Modi, before shooting Jagdale’s male relatives, including her father, she said.

Local resident Abdul Waheed told CNN he jumped on his pony to help transport the injured back to areas where they could be driven to the hospital, and enlisted others in his local pony association to help. For those who were too injured, they used makeshift cots to carry them down the valley.

“I saw people crying, screaming, just lying in the aftermath of the attack. There were children, women, men, everyone,” he said. “It was a massive trauma. I did not sleep all night.”

India’s security forces have launched a manhunt after gunmen opened fire on tourists and killed 26 people in Indian-administered Kashmir’s worst attack on civilians in almost a quarter of a century.

— in pictures https://t.co/FwsTqJE0kI pic.twitter.com/U7stRyVv4f

— Al Jazeera English (@AJEnglish) April 23, 2025

The Indian government has offered monetary reward for “any information leading to the neutralization of the terrorists involved in this cowardly act.”

President Trump’s statement in reaction to the deadly terror attack…

The Himalayan region is administered in some parts by both Pakistani and Indian soldiers, and has long been a hotbed of violence; however, regional media has highlighted that direct attacks on tourists remain very rare.

Was that it for the Atlanta Fed recession (which as we described, managed to fool everyone into believing the US economy is crashing because of… surging gold imports)?

One month after the March Beige Book reported that in the first full month of Trump’s presidency, economic activity actually “rose slightly since mid-January” and that “six districts reported no change, four reported modest or moderate growth, and two noted slight contractions”, moments ago the Fed released the April Beige Book report according to which economic activity was…. shockingly not falling off a cliff as one would expect listening to liberal media, but instead was “little changed since the previous report” even though uncertainty around international trade policy was pervasive across reports. Similar to last month, five districts saw slight growth, three districts noted activity was relatively unchanged, and the remaining four Districts reported slight to modest declines. And just as importantly, contrary to expectations of runaway prices, the Beige Book found that prices increases (described equally as modest and moderate) were not galloping higher but instead were “similar to the previous report.”

In short, the sky is not falling. Here are some more details:

• While non-auto consumer spending was lower overall, most Districts saw moderate to robust sales of vehicles and of some nondurables, generally attributed to a rush to purchase ahead of tariff-related price increases. 
• Both leisure and business travel were down, on balance, and several Districts noted a decline in international visitors. 
• Home sales rose somewhat, and many Districts continued to note low inventory levels. 
• Commercial real estate (CRE) activity expanded as multifamily propped up the industrial and office sectors. 
• More importantly, loan demand – a key proxy for overall economic activity – was flat to modestly higher, on net. 
• Several Districts saw a deterioration in demand for non-financial services. 
• Transportation activity expanded modestly, on balance. 
• Manufacturing was mixed, but two-thirds of Districts said activity was little changed or had declined. 
• The energy sector experienced modest growth. 
• Agricultural conditions were fairly stable across multiple Districts. 
• Cuts to federal grants and subsidies along with declines in philanthropic donations caused gaps in services provided by many community organizations. 

In short, much of the same inertia as last month. Where there was some notable change, was in the outlook: recall last month, “overall expectations for economic activity over the coming months were slightly optimistic.” No more: courtesy of the concerted media campaign to spin Trump’s economic policies in the worst possible light, the latest Beige Book described the outlook in several Districts as having “worsened considerably as economic uncertainty, particularly surrounding tariffs, rose.”

Taking a closer at the labor market, the April Beige Book found that employment was little changed to up slightly in most Districts, with one District reporting a modest increase, four reporting a slight increase, four reporting no change, and three reporting a slight decline. This was a slight deterioration from the previous report with a few more Districts reporting declines. That’s the bad news; the great news is that DOGE is working: according to the report, “the most notable declines in headcount were in government roles or roles at organizations receiving government funding.” Which is precisely what most people voted for. Some more details:

• Hiring was generally slower for consumer-facing firms than for business-to-business firms. 
• Several Districts reported that firms were taking a wait-and-see approach to employment, pausing or slowing hiring until there is more clarity on economic conditions. 
• In addition, there were scattered reports of firms preparing for layoffs. 
• Most Districts and markets reported an improvement in overall labor availability, although there were some reports of constraints on labor supply resulting from shifting immigration policies in certain sectors and regions. 
• Wages generally grew at a modest pace, as wage growth slowed from the previous report in multiple Districts.

Turning to inflation, not surprisingly (to anyone who shops) prices increased across Districts, with six characterizing price growth as modest and six characterizing it as moderate, similar to the previous report.

• Most Districts noted that firms expected elevated input cost growth resulting from tariffs. 
• Many firms have already received notices from suppliers that costs would be increasing. 
• Firms reported adding tariff surcharges or shortening pricing horizons to account for uncertain trade policy. 
• Most businesses expected to pass through additional costs to customers. 
• However, there were reports about margin compression amid increased costs, as demand remained tepid in some sectors, especially for consumer-facing firms.

Here is a snapshot of highlights by Fed District:

• Boston: Economic activity increased slightly, as the outlook became more pessimistic on tariff-related concerns. Prices rose modestly, but contacts perceived new upside risks to inflation. Employment edged up, although hiring plans became more cautious in response to increased uncertainty. IT services contacts experienced strong revenue growth and were expected to be relatively unaffected by tariffs.

• New York: Economic activity contracted modestly as heightened uncertainty weighed on businesses and consumers. Employment was steady to up slightly. Price increases picked up to the higher end of the moderate range. Businesses expressed significant concern about tariffs. Outlooks darkened, with many businesses anticipating declining activity and rising prices.

• Philadelphia: Business activity declined modestly during the current Beige Book period after a slight decrease in the last period. Nonmanufacturing activity fell moderately. Employment declined slightly; wages and prices again grew modestly. Generally, sentiment fell, and firms grew less optimistic about future growth amid rising economic uncertainty.

• Cleveland: Reports suggested that Fourth District business activity continued to be flat in recent weeks, and contacts expected activity to remain flat in the months ahead. Consumer spending declined, though some auto dealers noted customers pulling forward purchases ahead of potential tariffs. Employment levels increased slightly, and wage pressures remained moderate.

• Richmond: The regional economy grew slightly in recent weeks despite some pockets of weakness tied to federal staffing and contract spending. Consumer spending was flat. Residential and commercial real estate activity picked up slightly. Non-financial service providers reported a modest decline in demand and hesitation from customers to make investment decisions. Employment was little changed and price growth remained moderate amid upward price pressures from tariffs.

• Atlanta: The Sixth District economy grew slightly. Employment was flat. Wages, nonlabor costs, and firms’ prices increased modestly. Retail sales fell slightly, and travel and tourism declined modestly. Home sales rose modestly. Commercial real estate conditions softened. Transportation activity grew slowly. Loan growth was moderate. Manufacturing declined. Energy activity rose slowly.

• Chicago: Economic activity was little changed. Consumer spending increased modestly; employment and construction and real estate activity were up slightly; manufacturing was flat; business spending declined slightly; and nonbusiness contacts saw a slight decline in activity. Prices increased modestly, wages rose slightly, and financial conditions tightened. Prospects for 2025 farm income were unchanged.

  St. Louis: Economic activity has remained unchanged, but the outlook has slightly deteriorated. Heavy rains negatively impacted neighborhoods, farms, and businesses. Contacts expressed a lot of uncertainty and an elevated effort in estimating the impact of tariffs and ways to reduce cost increases and supply disruptions.

  Minneapolis: District economic activity was lower. Employment declined and labor demand continued to soften. Wage growth was modest, and price increases were moderate. Consumer spending was lower with some exceptions. Manufacturing experienced modest improvements. Construction activity fell overall. Commercial real estate was mostly unchanged, and home sales declined. Agricultural conditions remained weak.

  Kansas City: Economic activity in the Tenth District grew slightly, but expectations about business activity and consumer spending weakened considerably. Amid shifting conditions, businesses indicated they were most likely to adjust pricing to adapt. Expectations of price growth rose at a robust rate, most pronounced in goods sectors. Employment levels were stable but hiring stalled.

  Dallas: Growth in the Eleventh District economy slowed to a slight pace. Nonfinancial services activity stalled. Retail sales dipped while manufacturing and oil field activity rose modestly. Lending growth moderated. Commercial real estate activity was steady, while housing demand remained tepid. Employment increased, and input cost pressures accelerated. Outlooks deteriorated as heightened uncertainty surrounding domestic and trade policy hindered firms’ ability to plan.

  San Francisco: Economic activity slowed slightly. Employment fell slightly. Wages grew slightly, and prices rose modestly. Demand for business and consumer services and for retail goods weakened. Activity in manufacturing and residential and commercial real estate markets softened slightly. Lending activity and conditions in agriculture were stable. The economic outlook worsened materially.

Confirming that contrary to conventional wisdom the economic picture was largely unchanged since April, the latest February Beige Book saw just 2 mentions of recessions, the same as March, and down sharply from 6 two months prior. Where there was some concern is that mentions of “slow” rose from from 35 in March (which was down from 38 in January) to 50. But the biggest surprise is that contrary to prevailing media narratives, mentions of inflation actually tumbled from a two year high of 15, to just 8- the lowest in three years, specifically since the start of the Fed’s post-Covid inflationary tsunami…

… suggesting that the US economy – while hardly on fire as it was during the hyperinflationary period of Biden’s admin – continues to chug along and is hardly collapsing as so many Trump foes would like to see; and it certainly is not seeing prices explode higher.

Last week it was revealed that Kilmar Abrego Garcia, a deported El Salvadoran man (aka, ‘Maryland Father’) at the center of an intense political debate, was suspected by a Tennessee state trooper of human trafficking in 2022 after he was pulled over for driving erratically in a black 2001 Chevrolet Suburban – owned by another individual, full of people.

“During the interview, subject pretended to speak less English than he was capable of and attempted to put encountering officer off-track by responding to questions with questions,” reads the summary. “When asked what relationship he had with the registered owner of the vehicle, subject replied the owner of the vehicle is his boss, and that his work is in construction.”

“There was no luggage in the vehicle, leading the encountering officer to suspect this was a human trafficking incident,” according to DHS records.

Now, Just the News reports that the SUV was owned by a man who was himself deported after pleading guilty to smuggling illegal aliens in 2020.

Abrego Garcia told the state trooper that the SUV was owned by his boss. DHS documents, meanwhile, identified the owner of the vehicle as Jose Ramon Hernandez Reyes – whose 2001 Suburban was flagged separately by Homeland Security Investigations Baltimore field office as belonging to a target the suspected of human trafficking or smuggling, the documents reveal.

“Vehicle is used by HSI Baltimore target in human smuggling/trafficking operation. Vehicle makes trips to southern border to pick up non-citizens,” reads the record, adding that the Baltimore HSI case agent should be notified if the vehicle is encountered.

Jose Ramon Hernandez Reyes, who Abrego Garcia claimed he was working for, had been previously convicted of smuggling illegal aliens into the United States.

In 2020, Hernandez Reyes, himself an illegal alien, pleaded guilty and was sentenced to 18 months in prison for smuggling fellow illegal aliens in the United States after he was stopped by law enforcement in Mississippi in a car with passengers from Mexico, El Salvador and Honduras. Homeland Security records indicate Hernandez Reyes’ “deport order” was reinstated in March 2021, as his 18-month sentence was nearing its end. -Just the News

A DHS official confirmed to JTN that the Hernandez Reyes mentioned in both cases refer to the same individual, though it’s unclear what the relationship was between Abrego Garcia and Hernandez Reyes.

According to the report, the similarities in traffic stops between the two men are striking. According to the DOJ, Hernandez Reyes and one co-defendant were stopped outside in Jackson County, Mississippi in the Suburban, which was being driven by one Modesto Alvarez – later determined to be Hernandez Reyes’ brother-in-law.

Investigators also determined that the eight of the nine men in that stop were in the US illegally, and were citizens of Mexico, El Salvador and Honduras who had previously been deported from the United States and had illegally returned. They were  charged with unlawful reentry into the country.

Officers determined that Alvarez and Hernandez Reyes were transporting the illegal immigrants from their home base of Houston, Texas, to different locations throughout the United States. -JTN

Hernandez Reyes pleaded guilty in August 2020 to smuggling illegal aliens, and was sentenced to 18 months in prison plus three years of supervised release – after which he was slated to face deportation proceedings which carried a 10-year prison threat if he returns.

In the case of Abrego Garcia, he was stopped for driving erratically and speeding, on an expired driver’s license, by a Tennessee state trooper in November of 2022 – similarly transporting a large group of people from Houston, Texas.

Three weeks after the stop, on Dec. 27, 2022, DHS updated its records to urge any personnel who encountered Abrego Garcia to “escort to secondary” – a designation usually applied to someone suspected of wrongdoing.

DHS records also show that Abrego Garcia was offered a chance to claim he required humanitarian assistance for illness or had other reasons for seeking refuge from persecution – two grounds for asylum, but he declined, and instead told authorities he was willing to leave the United States.

By Michael Every of Rabobank

And They All Lived Happily Ever After(?)

Once again, an awful lot just happened, even by 2025 standards, and while some might be away with the faeries as a result, I still things as very Grimm.

As Tuesday saw the Wall Street Journal warn that the US Dow was heading for its worst April since the 1929 Great Depression, which fits the present zeitgeist, in Washington D.C. we got a flurry of developments:

• President Trump said he doesn’t intend to fire Fed Chair Powell – which he can’t anyway. And he may not even want to if he could as it’s useful to have a scapegoat for anything that goes wrong. Markets loved the prospect of going back to a world where they can savagely criticize, and lean against, central bankers but elected officials can’t; let’s see if they proceed to price for the Fed cutting rates ahead in exactly the manner Trump was talking about.

• ŸElon Musk floated that he’s about to step back from DOGE from next month, only spending time wielding a chainsaw a few days a week.

• ŸNouriel Roubini posted a defence of US CEA Head Miran which claims there are no White House plans for capital controls (that he knows of).

• ŸThe State Department is going to get a big shake-up to slim it down.

• ŸAt Health and Human Services, RFK, Jr. is to ban artificial food dyes, also stating: “Sugar is poison, and Americans need to know that it is poisoning us.”

• ŸUS Treasury Secretary Bessent side-briefed an investment bank that the trade stand-off with China is “unsustainable” –it’s a de facto embargo now after all– and a deal would be struck soon, even if it will take 2-3 years for things to normalise. This saw stocks rip higher before the public heard about it –“Main Street not Wall Street”, right?– though Bessent apparently also said much depended on China, not the US, moving.

• ŸThe White House added a trade deal with China is going well, and Trump said the final tariff won’t be as high as 145% “because China will have to make a deal.” To a 60% tariff, once unthinkable but now looking reasonable by comparison? To voluntary export restraint?

• ŸThe US said it’s received 18 trade proposals and has meetings with 34 others this week – all of whom will be told to deal less with China.

• ŸAs US Trade Representative ‘Keeping up with the Jones Act’ port fees now in place are so high they also decouple the US from Chinese-built vessels, with Chinese-cranes, containers, and chassis next in line. It’s full steam ahead for the trade war on that front.

Meanwhile, China asked South Korea not to export goods to US defense firms that contain its rare earths, and Vietnam and Korea clamped down on transshipment of Chinese goods to the US, showing sides are being taken. Expect more of that ahead.

With no sign of realist statecraft, Politico flags ‘Trump’s tariff war empowers Europe’s free traders’– just not the ones prepared to match US offers of removing all regulatory barriers to trade– as “Even the EU’s most protectionist countries are realizing that they need new friends to trade with as their oldest ally goes rogue.”

EU Commission President Von der Leyen adds the ‘World is ‘lining up’ to work with Europe amid Trump’s trade war’. So, Europe will be importing a lot more then? Because nobody wants to replace exporting to the US with importing from the EU. In which case, Europe ‘replacing the US’ globally means taking on all its key weaknesses, such as trade deficits, with few of its strengths, such as energy, tech, and defence muscle.

In geopolitics, Russia proposed to freeze the invasion of Ukraine along current lines as part of a peace deal. Europe remains concerned that could lead to further concessions from the US would weaken Ukraine going forwards, and Kyiv has already rejected ceding Crimea to Russia. Is there really a happy ending there?

US and Israeli military preparations for a strike on Iran continue, as President Trump says he and Israeli PM Netanyahu are “on the same side of every issue.” Yet US-Iran nuclear talks are advancing quickly, with the two sides already exchanging drafts according to once source – and as Israel sees its outgoing equivalent of the FBI leaves an affidavit that the PM wanted him to spy on protestors and swear loyalty to him over the legal system. Some would argue that the last time the Middle East saw a happy ending was in ‘The Tales of the Arabian Nights’.

And sounding like one itself, the now suddenly ex-head of the WEF and his wife — whom all the Liberal World Order’s great and good liked to hobnob with — are under investigation for financial and ethical misconduct involving ATMs, private in-room massages at hotels, and luxury travel. I’m shocked that an organization as democratic, transparent, and accountable as the WEF, and which charges nearly $50 for a hotdog, might allegedly have seen misuse of funds like that. Some will be equally sure the next WEF head will Build Back Better.

So, where do we sit now? With stocks higher, key bond yields lower, DXY trending higher if off yesterday’s peak, and gold sharply lower if trying to rebuild momentum in early Asian trading.

But if you think that just because Trump said he isn’t going to fire Powell in an era in which the independence of central banks is going to be called into question by the demands of realpolitik; or because he said something nice about China and tariffs for the nth time as the world starts to divide along geopolitical lines; or because nuclear-armed Russia and nearly-nuclear-armed Iran are about to live happily ever after with the neighbours they have sworn to destroy,… well, clearly you enjoy fairy tales.

Sadly, we still have to achieve a new global security, financial, economic, and trading architecture to replace the old US-centric one that didn’t work well enough not to collapse. That will take us 1,001 nights, at least!

Trump vs. Zelensky Round Two? Tensions initially looked to have cooled after the Zelensky-Vance-Trump February 28 verbal blow-up and showdown at the Oval Office (see clip below), but the spat is heating up once again, and is fast getting personal.

President Trump has slammed President Zelensky in a Wednesday post on Truth Social, saying of the Ukrainian leader, “if he wants Crimea, why didn’t they fight for it eleven years ago when it was handed over to Russia without a shot being fired”… and “He can have Peace or, he can fight for another three years before losing the whole Country.”

The fiery denunciation appears in direct response to Zelensky the day prior rejecting Washington demands that Ukraine be ready to formally recognize Russian sovereignty over Crimea. Trump continued, “It’s inflammatory statements like Zelenskyy’s that makes it so difficult to settle this War. He has nothing to boast about!“

The White House has this week been making it clear that the United States is ready to walk away from the peace process if it doesn’t have willing partners. All of this pressure seems aimed squarely at Kiev, given also Vice President Vance’s Wednesday remarks while in India. 

“We’ve issued a very explicit proposal to both the Russians and the Ukrainians, and it’s time for them to either say yes or for the United States to walk away from this process,” Vance told the press pool while on the trip. “The only way to really stop the killing is for the armies to both put down their weapons, to freeze this thing and to get on with the business of actually building a better Russia and a better Ukraine.” Freezing the war now would certainly give Russian forces a huge advantage, given the immense territory in the East they now hold.

Trump in the fresh social media post further demanded that now is the time to “GET IT DONE” – referring to achieving a lasting settlement. And he coupled this with another swipe at Zelensky, saying the man has “no cards to play” – which has been a US admin theme going back to February.

“I look forward to being able to help Ukraine, and Russia, get out of this Complete and Total MESS, that would have never started if I were President!” – Trump concluded in the post.

Trump is clearly not happy in the wake of Zelensky’s Tuesday remarks wherein he asserted that Ukraine will not legally recognize Russia’s occupation of Crimea under any circumstances,

“There is nothing to talk about. This violates our Constitution. This is our territory, the territory of the people of Ukraine,” Zelensky told reporters.

But Trump is now calling this out as essentially BS – saying that no, this is the very thing in question that must be talked about if the war is to end. On a practical level, Russia is never going to give up Crimea regardless, given it has long been the historic home of the Russian Navy’s Black Sea fleet, and has an overwhelming Russian-speaking population.

This was “Round One”…

.@VP: “Do you think that it’s respectful to come to the Oval Office of the United States of America and attack the administration that is trying to prevent the destruction of your country?”@POTUS: “You don’t have the cards right now. With us, you start having cards … You’re… pic.twitter.com/iTYyAmfuCJ

— Rapid Response 47 (@RapidResponse47) February 28, 2025

Will Zelensky respond to this latest dressing down by Trump? His PR handlers are likely urging him not to. The last time this happened in the wake of Zelensky’s visit to the White House, the US cut off weapons supplies and intelligence-sharing to Kiev for several days. But this spat and sparring could blow up further yet. Zelensky expressed hope that he could meet with Trump while in Rome for the Pope’s funeral on Saturday, but this is now looking less likely.

Vice President JD Vance while traveling in India on Wednesday issued some new and provocative remarks on the prospect of Ukraine peace, and Washington’s demands related to ending the war.

The NY Times headlined is coverage of Vance’s new remarks by somewhat disparagingly calling it a “Plan for Ukraine That Sharply Favors Russia” — given that it calls for ‘freezing’ the front lines, which would leave Russian forces in control of the majority of the Donbass region in Eastern Ukraine.

The Vice President reiterated to reporters that the United States would “walk away” from engaging in a peace process if both Ukraine and Russia refused to accept the American terms. The NY Times concludes, “But President Volodymyr Zelensky of Ukraine was clearly the target.”

“We’ve issued a very explicit proposal to both the Russians and the Ukrainians, and it’s time for them to either say yes or for the United States to walk away from this process,” Vance told the press pool. “The only way to really stop the killing is for the armies to both put down their weapons, to freeze this thing and to get on with the business of actually building a better Russia and a better Ukraine.”

Here is the brief list of basics that Washington is demanding for its outline of peace:

—a “freeze” of territorial lines in the three-plus year war

—no path to NATO membership for Ukraine

—formal recognition of Russia holding Crimea

But it was only yesterday that Ukraine’s President Zelensky said he has rejected the possibility of ceding over Crimea, after the Trump administration reportedly offered this ‘gift’ to Putin of US recognition of Russian sovereignty over the strategic peninsula which has long been home to the Russian navy’s Black Sea fleet.

According to Ukrainian media:

Ukraine will not legally recognize Russia’s occupation of Crimea under any circumstances, President Volodymyr Zelensky said during a briefing in Kyiv on April 22.

“There is nothing to talk about. This violates our Constitution. This is our territory, the territory of the people of Ukraine,” Zelensky told reporters.

Zelensky added, “As soon as talks about Crimea and our sovereign territories begin, the talks enter the format that Russia wants – prolonging the war – because it will not be possible to agree on everything quickly.”

Kiev has also recently accused Moscow of using negotiations as a smokescreen, also coming off the 30-hour Easter truce, which saw both sides accuse the other of many violations.

Commenting further of Vance’s fresh remarks, the NY Times writes, “It was the first time a U.S. official had publicly laid out a cease-fire deal in such stark terms and the comments appeared designed to increase pressure on Ukraine, which has long refused to accept Russia’s claims on its lands, particularly in Crimea.”

Ukraine is meanwhile telling its Western backers that it is “ready to negotiate, but not to surrender.” According to fresh words of Ukraine’s vice PM Yulia Svyrydenko, “There will be no agreement that hands Russia the stronger foundations it needs to regroup and return with greater violence. A full ceasefire—on land, in the air, and at sea—is the necessary first step. If Russia opts for a limited pause, Ukraine will respond in kind.”

JD Vance threatens to abandon Russia, Ukraine peace negotiations with Trump’s ‘final offer’ on the table https://t.co/AmTiuQMyHt pic.twitter.com/WLiUZX0pYL

— New York Post (@nypost) April 23, 2025

Something like this was just tried as part of the 30-hour Easter ceasefire, with apparent limited success. But Svyrydenko also hit back at Washington, saying “But our people will not accept a frozen conflict disguised as peace.” The high-ranking official has laid out the following key points of Ukraine’s position:

—Open to negotiations, but not surrender 

—No deal to allow Russia to regroup for future aggression

—Full ceasefire (land, air, sea) required as first step

—No “frozen conflict” masked as peace

—No Ukraine recognition of Crimea as Russian

—If no NATO membership, must get strong, binding security guarantees

The reality remains that if Zelensky can’t so much as admit that Crimea will be permanently in Russia’s hands, with no hope of Kiev ever getting it back, the prospect of a peace settlement happening anytime soon seems very remote. Moscow has made clear it will never give Crimea over to Ukraine, after the 2014 referendum, and most Western officials recognize this as a reality as well.

This is why the White House is willing to let go of Ukrainian claims on Crimea as well, given it is a realistic first step and major, pragmatic concession toward potentially ending the conflict.

US Secretary of State Marco Rubio was expected to lead a high-level American delegation for more Ukraine peace consultations among allies in London on Wednesday. But in the latest sign that White House patience is wearing thin, the American delegation became a no-show.

“European diplomats pulled the plug on high-level talks set for Wednesday about ending Russia’s war in Ukraine after top US diplomats abruptly canceled plans to attend,” The Washington Post reports.

Now there will only be lower-level talks, and a planned foreign minister’s meeting has been scrapped due to Rubio’s absence. All this highlights the clear rift between Washington and European partners, which has seen the US side push the idea of offering Russia recognition of its sovereignty over Crimea.

Ukraine has instead wanted to “discuss a complete ceasefire first and everything else later” – according to an official quoted in The Washington Post.

British Foreign Secretary David Lammy was supposed to host his peers, but will now merely “drop in” during lower level talks, according to the report. “The foreign minister-level meeting isn’t happening,” an unnamed diplomat told the Post.

“We’re hopeful as per the Rubio tweet that a meeting in London can happen soon, but without Witkoff, the secretary of state, the French and German foreign ministers, there’s no reason for the foreign secretary to chair,” the diplomat said.

According to more travel details from the report:

U.S. Secretary of State Marco Rubio had been scheduled to fly to London on Tuesday night but canceled those plans midday. Steve Witkoff, a special envoy and close ally of President Donald Trump central to White House efforts to broker an end to the war, also dropped out. He will head to Moscow this week, according to the Russians.

Likely these optics of Witkoff going to Moscow instead of London will be seen by Kiev as further evidence it is losing its number one ally and supplier of weapons and intelligence.

And Vice President JD Vance while on a planned trip to India Wednesday reiterated the White House stance, saying “We’ve issued a very explicit proposal to both the Russians and the Ukrainians, and it’s time for them to either say yes or for the United States to walk away from this process.”

He continued in the remarks to reporters while visiting the Taj Mahal, “We’re going to see if the Europeans, the Russians and the Ukrainians are ultimately able to get this thing over the finish line.”

Rubio and Witkoff will not be attending the London talks with Ukraine and European leaders. Kellogg will attend.

Yesterday Zelensky appeared to reject the Crimea recognition part of Kellogg’s plan.

Kellogg’s plan is going down in flames, and he will take the L. Rubio and… pic.twitter.com/kXd4LgMjlt

— Alex Christoforou (@AXChristoforou) April 23, 2025

The suggestion is that both sides would have to give up territories they control, and make mutual compromises, but still it’s clear that Russia is in the driver’s seat on the battlefield – having just this week also regained nearly all of Kursk territory, leaving Zelensky with no leverage there.

Ukraine has said it’s open to negotiations “but not to surrender”. President Putin has meanwhile in a surprise move reportedly offered to halt all front line fighting – or freeze it in place – for the sake of achieving peace; however, he would likely want major concessions from the West in return, starting with international recognition of Crimea as under Russia. And any ‘freeze’ of current lines leaves Russia in control of most of the Donbass region.

Stocks are spiking higher, and extending premarket gains, after the WSJ reported that the Trump administration is considering slashing its steep tariffs on Chinese imports – in some cases by more than half -in a bid to de-escalate tensions with Beijing that have roiled global trade and investment, according to people familiar with the matter.

According to the report, China tariffs were likely to come down to between roughly 50% and 65%, about half of their current levels. The administration is also considering a tiered approach similar to the one proposed by the House committee on China late last year: 35% levies for items the U.S. deems not a threat to national security, and at least 100% for items deemed as strategic to America’s interest. The bill proposed phasing in those levies over five years.

In retrospect, the WSJ report said nothing new – and appears to be an attempt to merely stay in the newsflow – after Trump said Tuesday he was willing to cut tariffs on Chinese goods, saying the 145% tariffs he imposed on China during his second term would come down. “But it won’t be zero,” he said. The announcement sent stocks surging afterhours.

On Wednesday, China signaled it was open to trade talks with the U.S., though Beijing warned it wouldn’t negotiate under continued threats from the White House. In China’s policymaking circles, Trump’s comments Tuesday were viewed as a sign of him folding, the WSJ reported citing people who consult with Chinese officials said.

The expressions of openness to a deal from both sides represent a shift from much of the past month, as the world’s two largest economies exchanged reciprocal tariff increases and testy words, helping push stock markets around the world to their worst weeks in many years.

President Trump hasn’t made a final determination, the people said, adding that the discussions remain fluid and several options are on the table.

Separately, and at almost the exact same time, the WSJ also piled in on the other key topic du jour, namely the “explanation” why Trump decided not to fire Jerome Powell – as Trump also revealed he would not do yesterday. According to the WSJ, the White House had engaged lawyers to see how Chair Powell could be removed from office. However, Treasury Secretary Bessent and Commerce Secretary Lutnick are said to have stepped in and raised concerns about the market implications of such a move. Some more details:

As Trump’s criticism of the Fed chair ramped up over the last week, White House lawyers privately reviewed legal options for attempting to remove Powell, including whether they could do so for “cause,” according to people familiar with the matter. The laws that created the Federal Reserve say Fed governors can only be removed before their term ends for cause, which courts have generally interpreted to mean malfeasance or impropriety. Finding a pretext for dismissing Powell would have edged the White House closer to a dramatic escalation with the central bank.

Those discussions came to a halt early this week when Trump told his senior aides that he wouldn’t try to oust Powell. His decision came after interventions from Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, who warned Trump that such a move could trigger far-reaching market chaos and a messy legal fight, the people said. Lutnick also told the president that efforts to fire the Fed chair likely wouldn’t lead to any practical change on interest rates because other members of the Fed’s board would likely approach monetary policy similarly to Powell, one of the people said.

While there was nothing actually new in the WSJ reports, they validated the good news that had pushed stocks up sharply higher overnight, and the result was further gains this morning which sent the S&P up more than 3% and fast approaching the first key CTA buy trigger around 5460.