So much for being more regular about posting…
This week, Canada’s shift away from co-dependency with its southern neighbor continued, as the European Union announced it would extend an invitation to Canada for “Associate Member” status, a category that does not currently exist. What exactly this status means is still unclear. Trump doesn’t seem happy about the prospect.
Let’s survey some economic indicators, shall we? The national price of gas is now up to $4.48 a gallon, up from $4.10 a month ago, while the national price of diesel has reached an all-time high of $6.50 a gallon, up from $5.55 a month ago. Annual inflation is currently at 3.4%, compared with 2.4% in February before the war with Iran started. In light of persistent inflation this week the Federal Reserve, now chaired by Trump loyalist Kevin Warsh, voted to raise the Fed Funds rate by 25 bps, the first rate hike since 2023. Trump didn’t lash out at Warsh the way I thought he might, but he does continue to hold unrealistic views as to what U.S. interest rate levels ought to be. The S&P 500 remains up 11.5% year-to-date, although it has been treading water over the past six weeks. The average 30-year mortgage rate climbed to 6.95% this week, the same level it was at Trump’s second inauguration; it had gotten below 6% just before the war with Iran started. Finally, the average price of ground beef hit an all-time high of $6.92 per pound last month; its climb during the Biden administration from $3.97 to $5.60 was one of the drivers of public dissatisfaction with Biden. Yet, somehow, Congressman Emmer (R-MN) was quoted on the campaign trail this week touting ground beef prices below $2 per pound.
With such ‘robust’ economic news, it is perhaps not surprising that over the past 10 days Nate Silver’s assessment of the Democratic Party’s chances this fall have improved. Right now he makes the Democrats 65% favorites to take the Senate, up from 51% when I last posted. He’s moved Talarico up from 56% to 70%, while in Iowa Turek’s chances have risen from 35% to 52%. He also thinks it is now 51% that the Democrats will get to 52+ seats, which could be important given Fetterman’s unreliability.
There is also news about the U.S. having reached a new security arrangement with Denmark regarding Greenland. However, it is not yet clear what is actually in the new agreement, and whether it is substantively different from the pre-Trump status quo. As a practical matter, even if it doesn’t actually change reality, it defuses tensions with the E.U. while giving Trump an ability to, as a Danish reported put it, “take a victory lap on social media.”
However the main piece of news since I last posted comes from the Supreme Court, which took some all-too-rare action against a Trump administration policy priority.
I had briefly mentioned in my last post the various controversies around first an Executive Order, and then a final regulation, imposing new requirements regarding the transmission of federal election ballots via the mails. As lawyer Adam Unikowsky explains, the primary underlying federal objective isn’t really about preventing mail-in voting fraud at all:
“The government has had difficulty collecting voter information from states. There’s currently a separate stream of litigation in which the federal government is suing states trying to get access to their voter rolls. These lawsuits have failed 23 straight times. So the federal government is trying something different. …[T]he federal government will leverage its power over the Postal Service to prevent states from sending mail ballots unless the states give the federal government information sufficient to identify, by name, everyone who voted by mail.”
A secondary underlying federal objective, arguably, is to wreak havoc with an election cycle that is likely to be adverse to the administration. The new rule may be illegal as a general matter, but in attempting to implement it two months before an election the administration is creating significant operational risk that mail-in voting for the 2026 midterms would not function smoothly–which, given the current politics of mail-in voting, seems to be a risk the administration would welcome.
As such, while the plaintiffs seeking to stop the new regulation are certainly arguing that the regulation is entirely invalid, they are more immediately concerned with getting it enjoined for the 2026 midterms. And that’s what SCOTUS did last week, in a case now captioned USPS vs. California: The per curiam majority denied the administration’s application for a stay of an adverse lower court ruling preventing the rule from applying to the 2026 midterms, saying both that “the Government is unlikely to succeed on the merits of its challenge” and that “the equitable factors applicable for obtaining emergency relief from this Court do not warrant a stay.”
Since the second statement quoted above would have been sufficient to justify the denial of a stay by SCOTUS, the fact that the per curiam opinion also made the first statement is interesting: It appears to signal that at least 5 Justices believe that the rule is likely illegal, period. On the other hand, we have an Alito dissent joined by Thomas in which he argues that the stay should have been granted, and we have a Kavanagh concurrence saying that he thinks there’s “at least a fair chance” that the rule is legal but that implementing it so close to an election (and with so little preparation for the rule’s requirements having been made) would be “arbitrary and capricious” under the APA.
As such, on the eventual merits question of whether the USPS has the authority to adopt this rule, we could be looking at more like a 5-4 or 6-3 split. But for now, at least, the rule is a dead issue with respect to the 2026 elections, albeit not before having dredged up a lot of concern among the general public about the potential reliability of mail-in voting.