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Justice Department

Justice Department Targets Letitia James in High Stakes Trump Legal Showdown

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The Justice Department has issued subpoenas to New York Attorney General Letitia James’ office as part of a widening criminal investigation linked to former President Donald Trump. The grand jury in Albany is probing alleged violations of constitutional rights connected to James’ investigations of the Trump Organization and the National Rifle Association. While James’ lawyer calls the move political retaliation, the Justice Department remains silent. This development adds a new chapter to the ongoing legal battles between Trump and one of his fiercest critics, raising questions about justice, politics, and power in today’s volatile climate.

Story Highlights

  • Federal Subpoenas: Issued to NY Attorney General’s office over probes into Trump Organization and NRA.

  • Albany Grand Jury: Investigating alleged constitutional rights violations against Trump.

  • James’ Response: Lawyer calls the probe political retaliation and vows to defend office’s actions.

  • Wider Pattern: Other Trump critics, including Comey, Brennan, and Jack Smith, also under investigation.

  • Mortgage Fraud Probe: FBI pursuing separate case; James denies wrongdoing.

  • Civil Fraud Judgment: Trump ordered to pay $450M; appeal pending with $175M bond posted.

  • NRA Case: James’ office secured reforms in the gun rights group’s leadership structure.

The Justice Department has moved into uncharted political and legal territory, issuing subpoenas to the office of New York Attorney General Letitia James in connection with a criminal investigation, according to multiple sources familiar with the matter.

Two separate grand jury subpoenas, sent from the U.S. Attorney’s Office for the Northern District of New York, seek records tied to James’ ongoing and past investigations into two high-profile targets: the Trump Organization and the National Rifle Association. Sources say a grand jury has been convened in Albany to explore whether James engaged in “deprivation of rights,” a legal term for violating constitutional rights — allegations tied directly to her office’s handling of matters involving former President Donald Trump.

The Justice Department itself has declined public comment on either the subpoenas or the grand jury’s scope.

Abbe Lowell, an attorney representing James, issued a pointed statement calling the federal move “the most blatant and desperate example” of using government power for political payback. “Weaponizing the Department of Justice to try to punish an elected official for doing her job is an attack on the rule of law,” Lowell said, warning that it marked a “dangerous escalation.” He added that if prosecutors were genuinely interested in the truth, James’ office was “ready and waiting with the facts and law.”

The subpoenas place James among a growing roster of Trump’s longtime political adversaries who have found themselves under federal investigation since leaving office or clashing with the former president. This list includes former FBI Director James Comey, former CIA Director John Brennan, and several officials involved in election security or investigations into Russian interference in 2016 — among them former DHS official Miles Taylor, former CISA head Chris Krebs, and former special counsel Jack Smith, who indicted Trump twice in 2023.

In May, FBI Director Kash Patel confirmed a separate investigation into James, this one in the Eastern District of Virginia, focused on allegations that she committed fraud on a mortgage application. Lowell characterized those accusations as “baseless and long-discredited.”

The Civil Fraud Case at the Center of the Storm

The most prominent clash between Trump and James began in September 2022, when the New York Attorney General’s office filed a sweeping civil fraud lawsuit against Trump, his adult sons, and the Trump Organization. The case alleged the former president’s business empire repeatedly inflated the value of properties and assets to secure favorable terms from banks and insurers.

Following a lengthy and contentious trial that stretched across late 2023 and into 2024, a judge found Trump liable for fraud and ordered him to pay more than $450 million in penalties. Trump’s legal team, led in part by attorney Alina Habba — who has since taken a role as acting U.S. Attorney in New Jersey — filed an appeal. While the appeal is pending, Trump posted a $175 million bond.

The courtroom exchanges were anything but restrained. Trump used both the witness stand and courthouse hallways to denounce James, describing her as “a political hack” and accusing her of orchestrating “a political witch hunt.” James, often present in the courtroom gallery behind her attorneys, countered through press statements and social media videos defending her office’s work.

Beyond Trump: NRA Litigation and Broader Reach

James’ office has also taken on other powerful entities, notably the National Rifle Association. Her legal action against the NRA led to court-ordered structural reforms within the organization. A spokesperson for the attorney general’s office stressed that “any weaponization of the justice system should disturb every American” and underscored that they “stand strongly” by their litigation outcomes.

With grand juries now examining her actions in multiple jurisdictions, James faces a multi-pronged legal battle even as she continues to hold one of the most visible law enforcement positions in the country. The unfolding investigations underscore both the high stakes and the deeply personal nature of the ongoing feud between the former president and one of his most persistent critics.

The subpoenas against Letitia James mark an escalation in a long-running and highly public legal confrontation between the New York attorney general and former President Donald Trump. While James defends her actions as the fulfillment of her duty to enforce state laws, the federal inquiries place her under the same kind of scrutiny she has brought to others. As the grand jury proceedings unfold and Trump’s appeal in the civil fraud case moves forward, the clash between these two figures remains a high-stakes battle—one that blends law, politics, and personal rivalry, with implications reaching far beyond New York’s courtrooms.

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Trump Turns Up the Heat as Fed Faces Crucial Interest Rate Test

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As the Federal Reserve prepares to announce its interest rate decision on July 30, all eyes turn to Chair Jerome Powell amid renewed pressure from President Trump to slash borrowing costs. With inflation ticking above the Fed’s target and economic growth slowing, the central bank faces a delicate test. While Trump demands cuts, citing moves by global counterparts, the Fed appears poised to hold steady. This high-stakes standoff—where politics meets policy—now grips markets, as investors await Powell’s verdict on the nation’s financial path.

STORY HIGHLIGHTS:

  • Fed to announce decision on interest rates Wednesday at 2 p.m. ET

  • Rates expected to remain in the 4.25%–4.5% range

  • Odds of rate cut this week: Only 4%

  • Inflation in June: 2.7% — above Fed’s 2% target

  • Next potential cut likely at the Sept. 16–17 meeting

  • Trump: “Interest rates have to come down”

  • Powell: “Fed decisions are based on data, not politics”

In the latest display of tension between the White House and the nation’s central bank, President Donald Trump met privately last week with Federal Reserve Chair Jerome Powell, reiterating what he described as a “very simple” request: “Interest rates have to come down.”

The request comes at a time when the Federal Reserve is widely expected to keep interest rates unchanged during its upcoming announcement on Wednesday, July 30 at 2 p.m. ET. A press conference with Powell will follow at 2:30 p.m., where he will address the state of the economy and respond to questions about the Fed’s monetary policy stance.

Despite repeated pressure from the president and top administration officials, economists believe the Fed is unlikely to budge just yet. FactSet data puts the probability of the Fed holding rates steady at a striking 96%, signaling that Powell and his team remain committed to a cautious approach amid mixed economic signals.

The central bank has kept its benchmark interest rate in the 4.25% to 4.5% range since December 2024. That decision, made before Trump’s second-term inauguration in January, was aimed at keeping inflation under control while providing enough support for continued economic growth.

However, Trump has publicly expressed frustration at what he views as unnecessary hesitation. He has criticized Powell for months over what he calls the Fed’s “overly cautious” handling of interest rates. The President has argued that a rate cut would stimulate the economy, strengthen investment, and help American businesses thrive.

In recent remarks, Trump pointed to more aggressive monetary actions abroad:

“Look at what the European Central Bank and the Bank of England are doing — they’re cutting rates. We’re just sitting on our hands.”

Yet, Powell and other policymakers appear unfazed by the political messaging. They continue to assert that interest rate decisions are determined not by politics, but by economic fundamentals.

“Our decisions are guided solely by data and our dual mandate: maximum employment and stable prices,” Powell has stated repeatedly in past briefings, emphasizing the independence of the Federal Reserve.

Adding to the strain, senior Trump administration officials have floated criticism of Powell’s handling of a Federal Reserve building renovation, suggesting it could be used as justification for his removal. However, any such move would likely spark legal and political challenges, as the Fed chair has fixed-term protection under federal law.

Meanwhile, inflation is proving to be more persistent than expected. The Consumer Price Index rose to 2.7% in June, surpassing the Fed’s 2% target and underscoring concerns that recent tariffs introduced by the Trump administration may be contributing to rising consumer prices. This puts the Fed in a tough spot: cut rates and risk stoking inflation, or stay the course and risk slowing economic momentum.

According to Ryan Sweet, chief U.S. economist at Oxford Economics:

“With the labor market holding up and the impact of tariffs on inflation starting to rear its ugly head, the Federal Reserve has plenty of ammunition to justify keeping interest rates unchanged at the July meeting.”

Some internal debate does exist within the Federal Open Market Committee (FOMC), the 12-member body responsible for setting interest rates. At least two members — Christopher Waller and Michelle Bowman — have recently signaled that a rate cut may be warranted soon.

If both dissent, it would mark the highest number of dissenting votes in a Fed rate decision since 1993. Still, the majority view remains in favor of patience. As Sweet noted:

“Dissents are normal and even healthy. They show the Fed isn’t falling into groupthink.”

The broader economic picture supports that caution. Job growth in June exceeded expectations, and second-quarter GDP, though slowing, is still projected to expand by 1.8%, compared to 2.8% in 2024. While not stellar, the figures don’t yet paint a picture of crisis.

“Policymakers remain cautious, navigating persistent inflationary risks tied to trade policy along with cooling labor market conditions and growing political pressure from the administration to accelerate rate cuts,” said Gregory Daco, Chief Economist at EY-Parthenon.

The Fed’s primary tools—interest rate hikes and cuts—are designed to adjust the speed of economic activity. Raising rates tends to slow spending and investment by making borrowing more expensive, helping contain inflation. Conversely, lowering rates can stimulate the economy but may also fuel price increases if not timed correctly.

Looking ahead, economists believe the Fed is far more likely to deliver a cut during its September 16–17 meeting, as that would give more time to assess inflationary trends and job market shifts. FactSet estimates a 63% probability of a rate cut in September, likely by 0.25 percentage points, bringing the target range to 4% to 4.25%.

“With no imminent need to act, the Fed will likely wait until September to deliver the next 25 basis point rate cut,” Daco said, adding that further cuts could follow in 2026 if economic conditions deteriorate further.

As Powell prepares to face reporters on Wednesday, many will be watching not just for his view on inflation and growth, but also his response to escalating pressure from the Trump administration. While Powell’s current term extends through May 2026, speculation has grown that the White House may move to name a successor early to shape the Fed’s direction in the final years of Trump’s presidency.

Even so, Powell has shown little sign of yielding.

“The odds are that [Powell] sticks with his mantra that it doesn’t impact monetary policy and he isn’t resigning, while dodging questions about a shadow Fed chair,” Sweet observed.

As the Fed walks a tightrope between economic data and political interference, Wednesday’s decision—and Powell’s words—will offer a crucial signal on how the central bank plans to navigate an increasingly complex landscape.

As anticipation builds ahead of the Federal Reserve’s July 30 announcement, the path forward remains delicately balanced between economic signals and political pressure. While the White House intensifies its call for immediate rate cuts, the Fed holds firm to its data-driven mandate, navigating inflation concerns and global uncertainties with caution. Chair Jerome Powell’s steady approach reflects an institution aiming to preserve credibility in turbulent times. Whether rates fall now or in the months ahead, the decision will shape the trajectory of the U.S. economy—and define the Fed’s independence in the process.

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Canada Pulls Plug on Digital Tax in Last-Minute Move to Woo US

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In a sharp and sudden twist, Canada scrapped its Digital Services Tax just hours before its rollout, dodging what could have become a bruising trade battle with the United States. The tax, aimed at tech giants like Amazon and Google, sparked firm objections from Washington, with former President Trump calling it a “deal breaker.” As tensions cooled, trade talks are now set to resume. With global markets watching, this unexpected retreat may unlock a fragile window of economic cooperation—if both sides play their next moves with care.

STORY HIGHLIGHTS

  • Canada cancels Digital Services Tax just hours before enforcement deadline.

  • 3% tax would have applied to major U.S. tech firms like Google, Amazon, Meta, and Apple.

  • Trump threatened tariffs, calling the tax a “blatant attack” on American innovation.

  • U.S. Commerce Secretary welcomes Canada’s decision, markets rally in response.

  • Finance Minister Champagne to introduce repeal legislation in Parliament.

  • Canada emphasizes support for a multilateral digital taxation framework.

  • Canada remains a critical U.S. trade partner, with exports and imports exceeding $760 billion in 2023.

  • Biden administration also challenged the DST on USMCA compliance grounds.

In a last-minute reversal that could reshape the trajectory of North American trade relations, Canada has announced it is abandoning its planned Digital Services Tax (DST) — a move that comes mere hours before the levy was set to take effect on Monday. The sudden policy shift is widely seen as a strategic effort to salvage trade negotiations with the United States, which had reached a boiling point in recent days.

The decision was made public late Sunday night through a statement issued by Canada’s finance ministry. It noted that Canadian Prime Minister Mark Carney and U.S. President Donald Trump would now resume direct trade talks, with the goal of reaching a comprehensive agreement by July 21. The announcement came after mounting pressure from Washington, which viewed the DST as a direct threat to American tech giants and a possible violation of existing trade obligations under the North American trade framework.

The tax, originally announced in 2020, was designed to ensure that large multinational technology companies generating significant revenue from Canadian users contribute their fair share to the country’s economy. Specifically, it proposed a 3% tax on digital services revenues exceeding $20 million annually, retroactive to 2022. Had it been implemented, the measure would have impacted major U.S.-based firms such as Amazon, Meta, Alphabet’s Google, and Apple.

In recent weeks, the tension surrounding the DST had reached a critical level. Former U.S. President Donald Trump, who had already paused trade discussions on Friday in response to the proposed tax, did not hold back in his criticism.

“This was a blatant attack on American innovation,” Trump stated, accusing Canada of undermining the principles of free trade. “If this tax went forward, there would have been no deal — not now, not ever.”

Adding to the pressure, Trump declared on Sunday that unless Canada immediately reversed its stance, he would impose a new round of tariffs on Canadian exports within the week — a move that risked plunging bilateral relations into turmoil after a period of relative calm.

Responding to the change, U.S. Commerce Secretary Howard Lutnick posted a reaction on X (formerly Twitter), expressing his satisfaction with Canada’s decision.

“Thank you Canada for removing your Digital Services Tax, which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America,” Lutnick wrote.

The policy retreat was also framed by Canadian officials as a practical decision grounded in the broader goal of achieving an international solution. Finance Minister François-Philippe Champagne confirmed that legislation would soon be introduced to repeal the Digital Services Tax Act entirely.

“The DST was originally introduced to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians,” Champagne said in the statement. “However, Canada’s preference has always been a multilateral agreement related to digital services taxation.”

Analysts suggest that while Canada’s DST had noble intentions rooted in tax equity and digital sovereignty, the political cost of maintaining the policy proved too high in the face of U.S. opposition. The United States, after all, remains Canada’s largest trading partner in goods and services — and the stakes of the ongoing negotiations could not be higher.

According to U.S. Census Bureau data, Canada bought $349.4 billion worth of American goods last year and exported $412.7 billion to the U.S., highlighting the deeply intertwined economic relationship between the two nations. Though Canada had managed to escape broad tariffs imposed earlier in April, it still faces steep 50% duties on its steel and aluminum exports to the American market — a point of contention that continues to simmer in the background.

The Biden administration, too, had previously flagged the DST as problematic, formally requesting trade dispute consultations earlier this year. U.S. officials argued that the tax was inconsistent with Canada’s obligations under the USMCA (United States-Mexico-Canada Agreement), formerly known as NAFTA.

This latest development comes after Carney and Trump met at the G7 summit earlier in the month, where both leaders reportedly agreed to wrap up a new economic agreement within 30 days. Though the meeting had been seen as a signal of cooperation, tensions flared almost immediately afterward when details of Canada’s DST surfaced again.

Now, with the DST effectively shelved and legislation to repeal it on the horizon, diplomatic space has opened once more for constructive dialogue. Wall Street responded positively to the news, with futures reaching record highs Monday morning. The market reaction reflects investor optimism that the renewed talks between the U.S. and Canada could lead to a smoother economic path ahead.

While the final shape of the upcoming trade deal remains unclear, the removal of the DST marks a significant reset in U.S.-Canada relations — one that could determine the contours of North American commerce for years to come.

Canada’s decision to withdraw its Digital Services Tax marks a pivotal shift in its trade diplomacy with the United States. By stepping back from a measure that risked igniting tariff retaliation and diplomatic discord, Canada has chosen negotiation over confrontation. As both nations now return to the table with renewed urgency, the coming weeks will determine whether this tactical retreat fosters a stable trade framework—or merely postpones deeper conflict. For now, the halted tax offers a fragile but welcome pause, opening the door to economic compromise in a high-stakes cross-border relationship.

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Bernie Sanders Stunned as Trump Declares Iran Strikes Mid-Rally

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In a dramatic twist that shook both politics and diplomacy, Bernie Sanders was delivering a fiery address at his “Fighting Oligarchy” rally in Tulsa when President Donald Trump declared a successful U.S. airstrike on three Iranian nuclear sites. As Sanders paused mid-speech to read Trump’s sudden Truth Social post aloud, the crowd erupted in chants against war. With planes reportedly out of Iranian airspace and bombs dropped on Fordow, Natanz, and Esfahan, the move ignited fierce debate over presidential war powers and raised fresh questions about America’s role in escalating Middle East conflicts.

STORY HIGHLIGHTS

  • Trump announced U.S. airstrikes on Iran’s Fordow, Natanz, and Esfahan nuclear sites during Sanders’ Tulsa rally.

  • Sanders interrupted mid-speech, read Trump’s post aloud, and called it “grossly unconstitutional.”

  • Trump declared “a full payload of BOMBS” was dropped; all U.S. planes reportedly exited Iran airspace safely.

  • A bipartisan War Powers Resolution seeks to restrict unauthorized military action in Iran.

  • Sanders reaffirmed “only Congress can declare war” and urged focus on U.S. domestic problems.

  • He warned against Netanyahu’s influence on U.S. military policy, labeling recent Israeli actions as violations of international law.

  • Rally was part of Sanders’ “Fighting Oligarchy” tour aimed at flipping Republican-held districts.

At what began as an energized and focused political rally in Tulsa on Saturday evening, Senator Bernie Sanders, I-Vt., was mid-sentence, passionately speaking against economic inequality and oligarchy in America, when the atmosphere abruptly shifted. An aide stepped onto the stage, handed him a slip of paper, and the crowd quickly sensed something was amiss.

The message was urgent — and stunning. President Donald Trump had taken to Truth Social to announce that the United States had conducted successful airstrikes on three Iranian nuclear facilities. The news broke in real time, leaving both Sanders and his audience visibly shaken.

The announcement read:
“We have completed our very successful attack on the three Nuclear sites in Iran, including Fordow, Natanz, and Esfahan.”

Sanders paused, rereading the statement, and shook his head as the crowd absorbed the implications. It was a jarring moment, especially in the middle of a rally focused on domestic issues like health care, wealth disparity, and corporate influence in politics. Suddenly, foreign policy took center stage.

The crowd erupted into a chant:
“No more wars! No more wars!”

Trump’s post continued with celebratory military language, stating:
“All planes are now outside of Iran air space. A full payload of BOMBS was dropped on the primary site, Fordow. All planes are safely on their way home. Congratulations to our great American Warriors. There is not another military in the World that could have done this. NOW IS THE TIME FOR PEACE! Thank you for your attention to this matter.”

The tone, Sanders implied, was triumphalist — and deeply troubling. After briefly gathering himself, the Vermont senator addressed the crowd once again, his voice now charged with frustration.

“This is not only alarming — it is so grossly unconstitutional,” he declared.
“All of you know that the only entity that can take this country to war is the U.S. Congress. The president does not have the right.”

In response to Trump’s move, members of both major parties in Congress voiced concern over the legality of such an action. Sanders joined this chorus, aligning with a bipartisan coalition calling out the president’s apparent disregard for constitutional protocol. A War Powers Resolution had already been introduced earlier in the week, amid rising fears over potential U.S. military involvement in ongoing hostilities between Israel and Iran.

The proposed resolution seeks to remove U.S. Armed Forces from “unauthorized hostilities” in Iran and demands that the president end military actions not explicitly approved by Congress.“The American people do not want more war, more death!” Sanders exclaimed.

“It might be a good idea if we concentrated on the problems that exist in Oklahoma and Vermont rather than getting involved in another war that the American people do not want.”

While Sanders acknowledged the gravity of the moment, he urged the crowd not to lose sight of the broader mission of his tour. The “Fighting Oligarchy” rally in Tulsa was part of a larger campaign to build grassroots opposition to what he sees as an aggressive and anti-democratic policy agenda by the Trump-led GOP. Despite the night’s dramatic detour, Sanders ended on a note of persistence and unity.

“In this moment in American history, what we have got to do in Vermont and Oklahoma, in Texas, all over this country, is stand up and fight back, and tell them this is our country!”

he said, drawing strong applause from the crowd.

Earlier this week, Sanders had already made his position on escalating military tensions clear, criticizing Israel’s preemptive strikes against Iran and cautioning against U.S. involvement. On social media, he addressed Israeli Prime Minister Benjamin Netanyahu’s influence on American policy.

“Netanyahu is not the President of the United States,” Sanders wrote.

“He should not be determining U.S. foreign and military policy. If the people of Israel support his decision to start a war with Iran, that is their business and their war. The United States must not be a part of it.”

He went further, condemning Netanyahu’s conduct following the Oct. 7, 2023, Hamas attacks, stating that the Israeli leader’s retaliatory military decisions in Gaza and Iran had violated international law.

“It’s just his latest violation,” Sanders said during an interview, adding that Netanyahu’s actions made him “look like a war criminal.”

Saturday’s Tulsa event was the second of the day for Sanders, part of a broader Southern swing that includes rallies in key Republican strongholds. The tour, which began earlier this year, reflects a growing Democratic strategy to bring progressive messages to deep red districts.

Rep. Greg Casar, D-Tx., and former Rep. Beto O’Rourke, D-Tx., are expected to join Sanders in Texas for events on Sunday. Rep. Alexandria Ocasio-Cortez, D-N.Y., previously joined the tour during its Western phase. The goal is to build momentum by reaching beyond traditional blue territories, a method also employed by Gov. Tim Walz, D-Minn., and supported by the Democratic National Committee’s “People’s Town Halls” initiative.

Before arriving in Tulsa, Sanders made a stop in House Speaker Mike Johnson’s hometown of Shreveport, La., continuing his push to confront Republican leadership on their home turf.

Though the evening took an unexpected turn, Sanders’ message remained consistent: American democracy, he argued, must be defended both from corporate dominance at home and reckless foreign policy abroad.

As tensions mount and questions of constitutional authority resurface, Senator Bernie Sanders’ impromptu reaction has spotlighted the fragile balance between presidential power and congressional oversight. With chants echoing against war and Sanders reaffirming the public’s demand for peace, the Tulsa rally became more than a campaign stop — it became a reflection of a nation caught between conflict abroad and uncertainty at home. As the dust settles from the strikes on Iran’s nuclear sites, the debate over America’s role in global warfare is once again front and center.

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