Background: President Trump had repeatedly attacked Fed Chair Powell for not cutting rates, leading to a DOJ investigation that was later dropped, allowing Trump's nominee Kevin Warsh to become Fed chair. Now, Trump says Warsh can 'do what he wants' on rates, even as markets price in a higher probability of a rate hike than a cut this year due to inflation from the Iran war. Treasury Secretary Bessent expects temporary inflation followed by disinflation. The early question for Warsh is whether to look through the inflation surge driven by energy disruptions. Minutes of the late April Fed meeting, due Wednesday, will shed light on a meeting where four officials dissented, three of whom wanted to remove language implying the next policy move will be toward lower rates.

Background: Incoming Federal Reserve Chair Kevin Warsh inherited a bond market turmoil with the 30-year Treasury yield surging to 5.11%, the highest since 2007, driven by energy supply disruptions, AI-driven capital demand, and large fiscal deficits. Today: Warsh aims to reduce the Fed's $6.7 trillion balance sheet, but faces significant risks including potential destabilization of money markets and rising borrowing costs. Critics, including Fed Governor Michael Barr, argue the effort is misguided and could threaten financial stability. The debate highlights tensions between monetary policy goals and financial market stability.

Israeli National Security Minister Itamar Ben-Gvir posted a video showing hundreds of detained activists from the Global Sumud Flotilla kneeling and handcuffed at Ashdod port, sparking widespread international condemnation. The flotilla, carrying 428 activists from 44 countries, was intercepted by Israeli naval forces in international waters while attempting to deliver aid to Gaza. Multiple countries including Italy, France, the UK, Germany, Canada, and Australia summoned Israeli ambassadors or issued condemnations. Israeli Prime Minister Netanyahu criticized Ben-Gvir's actions as inconsistent with Israeli values and ordered the activists' deportation, while Foreign Minister Sa'ar also distanced himself from the minister's conduct.

The Trump administration is finalizing an executive order on artificial intelligence and cybersecurity that would require developers of advanced AI models to voluntarily submit them for federal review up to 90 days before public release. The order establishes a multi-agency benchmarking process led by the NSA to define 'covered frontier models' and creates a voluntary partnership with industry to secure critical infrastructure. The directive reflects growing concern over AI-powered cyber capabilities and follows the release of Anthropic's powerful Mythos model.

Admiral Brad Cooper, head of US Central Command, previously testified before the Senate on the fiscal 2027 budget and military posture amid a fragile US-Iran ceasefire. In his first House Armed Services Committee appearance since the Iran war began, he requested increased investment in electronic warfare, counter-drone systems, and weapons for hard and deeply buried targets, noting adversaries are 'going underground.' Lawmakers sharply questioned the war's legal basis and conduct, with Democrats criticizing continued hostilities despite a declared ceasefire and the administration's shifting justifications. Rep. John Garamendi accused the Pentagon of disregarding Congress and the Constitution by continuing military operations after the ceasefire. Rep. Seth Moulton challenged Cooper on the war's planning and human cost. Cooper confirmed the investigation into the Feb. 28 airstrike on an Iranian girls' school is nearing completion and committed to releasing an unclassified version.

According to a New York Times report, the US and Israel developed a regime-change strategy for Iran that included former President Mahmoud Ahmadinejad as a potential successor. The plan involved freeing Ahmadinejad from house arrest via an airstrike, but an Israeli strike on a security post intended to free him instead killed guards and injured him. The opening strikes of the conflict also killed Supreme Leader Ayatollah Ali Khamenei. Ahmadinejad, who had fallen out with the regime after his presidency, has since gone into hiding. The plan has since unraveled. The report indicates broader US-Israeli ambitions beyond the publicly stated goal of eliminating Iran's nuclear capabilities and highlights the complex and controversial nature of US-Israeli regime change planning in Iran.

Background: European officials have warned for two years that Russia may test NATO's Article 5 commitment within a window of opportunity before the EU's 2030 defense readiness target and amid US troop withdrawals from Germany. Today's development: At the Lennart Meri Conference in Tallinn, analysts discussed scenarios of future Russian aggression against NATO, including a hypothetical attack on Narva, Estonia, by 2028. German political scientist Carlo Masala, author of 'The Next War,' presented a scenario where Narva, a Russian-speaking border town, could be destabilized by Moscow. Masala noted that it is impossible to predict exactly how or where Russia might attack a NATO member, but the scenario underscores concerns that Donald Trump's distancing from the alliance could embolden Vladimir Putin to test NATO's unity.

Background: President Trump had been weighing endorsing either Senator John Cornyn or Attorney General Ken Paxton in the Texas GOP Senate runoff. Today: Trump endorsed Paxton, stunning Senate Republicans and threatening Majority Leader John Thune's ability to pass Trump's agenda. The endorsement came during a 10-day revenge tour that saw Sen. Bill Cassidy lose his Louisiana primary and Rep. Thomas Massie lose his Kentucky primary. GOP senators expressed dismay, with Sen. Susan Collins calling Paxton 'ethically challenged' and Sen. Lisa Murkowski 'supremely disappointed.' The move complicates passage of a $72 billion reconciliation package and other must-pass bills on border security, surveillance, and the farm bill. Trump's frustration with Senate rules and GOP handwringing has deepened, with a confidante saying Trump is 'done with the Senate bullsh*t.'

The USS Nimitz carrier strike group, including destroyer USS Gridley and oiler USNS Patuxent, has arrived in the Caribbean Sea as tensions between the United States and Cuba escalate. The deployment, under U.S. Southern Command, follows joint exercises with Brazil and coincides with the indictment of former Cuban President Raúl Castro by the U.S. Department of Justice and President Trump's threats of invasion. CIA Director John Ratcliffe also met with Cuban officials on the island, emphasizing that talks will not remain open indefinitely.

European Commission President Ursula von der Leyen condemned Russian threats against the Baltic states as 'absolutely unacceptable' and a danger to the entire European Union, following a Russian Foreign Intelligence Service warning of 'just retribution' against Latvia for allegedly allowing Ukrainian drone launches. The same day, a drone scare in Vilnius forced Lithuanian lawmakers to shelter, shut down the airport, and suspended train traffic. Polish PM Donald Tusk called the incidents a 'coordinated provocation.' NATO Secretary General Mark Rutte said the alliance is responding under existing defense plans. The events mark a sharp escalation in hybrid warfare against NATO's eastern flank.

Background: The US has enforced a naval blockade of Iranian ports since April 13, 2026, using over 20 warships and has redirected 75 commercial ships and disabled four vessels. In a new development, on May 20, 2026, U.S. Marines from the 31st Marine Expeditionary Unit boarded the Iranian-flagged oil tanker M/T Celestial Sea in the Gulf of Oman, suspecting it of attempting to violate the blockade by sailing toward an Iranian port. The vessel was searched, its crew directed to alter course, and released. CENTCOM reported that the total number of redirected commercial ships has reached 91. The boarding occurred one day after President Trump stated he called off kinetic strikes against Iran to continue negotiations, and the IRGC warned that any new attacks would expand the conflict beyond the Middle East.

President Donald Trump signed an executive order on Tuesday directing the Treasury Department to issue advisories to financial institutions on red flags for identifying customers living in the U.S. illegally, including payroll tax evasion and use of Individual Taxpayer Identification Numbers (ITINs). The order stops short of requiring banks to collect citizenship data, a proposal that had faced industry pushback. It also directs changes to the Bank Secrecy Act to strengthen customer due diligence. The move is part of the administration's broader immigration enforcement efforts and could affect DACA recipients and those with Temporary Protected Status.

President Trump has been aggressively intervening in Republican primaries to avoid costly intra-party battles and protect the party's chances in the 2026 midterm elections. In a new development, his purge of disloyal Republicans contributed to the primary defeat of Rep. Thomas Massie of Kentucky, a libertarian who had repeatedly opposed Trump's legislative agenda. The defeat weakens the already narrow Republican majority in the House and could benefit Democrats in the upcoming midterm elections, highlighting Trump's continued influence and demand for absolute loyalty.

Russian presidential envoy Kirill Dmitriev announced that US President Donald Trump's envoy Steve Witkoff is expected to visit Russia soon, as diplomatic efforts to end the war in Ukraine continue. Dmitriev made the statement during his visit to China alongside Kremlin leader Vladimir Putin. Ukrainian President Volodymyr Zelensky said on May 8 that he expects US envoys to visit Ukraine in the coming weeks. Rustem Umerov, head of Kyiv's delegation in US-led peace talks, held meetings in the US with Witkoff and Jared Kushner on May 7, focusing on prisoner exchanges, diplomatic efforts to end the war, and Ukraine's international drone cooperation. US Secretary of State Marco Rubio noted that previous negotiations have not produced a breakthrough but the US remains prepared to facilitate peace if productive. Putin's visit to China follows Trump's recent summit with Chinese leader Xi Jinping in Beijing, where Xi reportedly told Trump that Putin may ultimately regret launching the invasion.

Google announced a major update to its search engine, allowing longer queries and chat-style exchanges, and integrating AI agents for recurring tasks like concert alerts and shopping. The move is part of a broader strategy to embed AI across all products, including new hardware like smart glasses co-developed with Samsung and Warby Parker, and the Gemini app with a personal assistant called Spark. This aims to counter the existential threat from AI chatbots like ChatGPT.

A new analysis by Ashley Ruiz in War on the Rocks argues that China's Salt Typhoon cyber campaigns against U.S. telecommunications and critical infrastructure exemplify a shift toward data-centric espionage, termed 'machine overmatch.' This approach prioritizes broad-based data collection and AI-driven analysis over traditional 'exquisite' intelligence, enabling faster operationalization of insights. The article highlights China's legal and institutional advantages in fusing state, commercial, and academic data, and warns that advances in AI and quantum computing could accelerate this model. It calls for U.S. reforms in data governance, public-private collaboration, and machine-assisted analysis to counter this evolving threat.

During a Senate subcommittee hearing on the Pentagon's fiscal 2027 budget request, Senators Joni Ernst and Elissa Slotkin expressed concern that Department of Defense policy on autonomous weapons is not keeping pace with rapid technological advances, particularly in AI-driven targeting and private-sector innovation. The Trump administration is seeking a massive increase for the Defense Autonomous Working Group (DAWG) to $55 billion from $225 million. Officials acknowledged the need for updated policies to address new capabilities and threats.

Background: After a Beijing summit, Trump signaled uncertainty on Taiwan arms sales and warned against independence. Today: Taiwanese officials and citizens express calm but emphasize self-defense and indigenous defense initiatives. Luo Wen-jia, secretary-general of the Straits Exchange Foundation, stated Taiwan must strengthen its own self-defense and adjust national defense. Taiwan's foreign affairs ministry pushed back on Trump's characterization of weapons as a bargaining chip, asserting that U.S. arms sales are part of security commitments under the Taiwan Relations Act and a key element of collective deterrence. The People's Liberation Army encircled the island in 2025 and entered its air defense identification zone more than 3,000 times in 2024. Taiwan's military kicked off live-fire beach defense drills ahead of the Trump-Xi summit.

An explosive device was thrown from a moving vehicle and detonated half a block from a polling station in Catasauqua, Pennsylvania, during the state's primary election on Tuesday. No injuries were reported, and voting continued despite road closures that reduced turnout. Authorities stated there was no evidence linking the incident to the polling center, and no arrests were made. The incident highlights ongoing security concerns for election infrastructure.

Background: Senate Republicans have been debating a budget reconciliation bill that includes a controversial $1 billion provision for security upgrades to President Trump's new White House ballroom, with key senators predicting its removal. Today: The Senate Budget Committee voted 11-10 along party lines to advance a $72 million reconciliation bill funding ICE and CBP through 2029, including $30.73 billion for ICE and $22.57 billion for CBP. The bill bypasses the 60-vote filibuster threshold. The $1 billion Secret Service ballroom provision remains in the bill but faces Democratic opposition and procedural hurdles. Senate Majority Leader John Thune expects to post the bill text by midday Wednesday, with a vote-a-rama potentially starting Wednesday evening, contingent on time yielded back by both parties.

Rep. Thomas Massie (R-Ky.) lost his primary election to veteran Ed Gallrein, who was endorsed by President Trump. Massie had co-sponsored the Epstein Files Transparency Act, which led to the release of millions of pages of documents. Former Rep. Marjorie Taylor Greene attributed the defeat to the Epstein files push, calling it 'our demise.' Trump also called for a challenger to Rep. Lauren Boebert (R-Colo.), who supported Massie. The defeat underscores Trump's influence in Republican primaries.

The US Department of Defense reduced its combat brigade teams in Europe from four to three, returning ground force levels to those of 2021, and temporarily delayed a planned fourth brigade deployment to Poland. Defense Secretary Pete Hegseth informed Polish Deputy Prime Minister Władysław Kosiniak-Kamysz of the decision on 19 May. Acting Army Chief of Staff General Christopher LaNeve confirmed the cancellation during House Armed Services Committee testimony, stating it was 'most logical not to deploy' the brigade. The Pentagon stated the reduction follows a comprehensive review and will determine final force disposition based on US strategic needs and allied capabilities. This announcement came two weeks after plans to withdraw 5,000 troops from Germany, and amid pressure from President Donald Trump on European allies to increase defense spending.

The US has been escalating pressure on Cuba through economic sanctions and intelligence leaks. Since 11 May, the US military has publicly broadcast the locations of at least five P-8A Poseidon surveillance aircraft and three MQ-4C Triton drones operating near Cuba, some within 50 miles of the island. Experts assess the flights are intended to enforce the oil blockade and deter Venezuela from shipping fuel, as Cuba faces blackouts and protests. Secretary of State Marco Rubio offered a 'new relationship' with the Cuban people while blaming the communist leadership for hardships. Cuba denies acquiring attack drones and accuses Washington of building a fraudulent case for military intervention.

The United States has previously offered $100 million in aid to Cuba conditioned on cooperation, blaming the communist system for the country's energy crisis. In a new development, Secretary of State Marco Rubio delivered a Spanish-language video on Cuban Independence Day directly accusing Cuba's communist leadership and the military conglomerate GAESA of plundering the economy and causing severe blackouts, fuel shortages, and food scarcity. He rejected claims that the U.S. blockade is responsible and reiterated the $100 million aid offer to be distributed by the Catholic Church, bypassing the government. Separately, the U.S. Justice Department indicted former Cuban leader Raúl Castro for ordering the 1996 shootdown of two civilian planes. CIA Director John Ratcliffe visited Cuba, warning that the window for negotiations is closing, as the Trump administration has floated the possibility of invasion amid faltering talks.

U.S. Cyber Command and the NSA have established a joint task force, announced by Gen. Joshua Rudd, to accelerate the safe deployment of cutting-edge AI tools on the military's most sensitive networks. The initiative comes amid concerns over the rapid proliferation of advanced AI models like Anthropic's Claude Mythos, which can find and exploit cyber vulnerabilities faster than human hackers. The task force will study how to integrate private-sector AI into high-side systems and offensive cyber operations, reflecting a major shift in Pentagon AI policy. It draws expertise from the NSA's AI Security Center and is led by a Cyber Command commander. The Pentagon has signed deals with seven tech companies, including OpenAI and Google, to use their AI models on classified networks.

Global tech buyout activity has plummeted to just $9.3 billion in April and May 2026 combined, down from a monthly average of $43.4 billion, according to PitchBook. The freeze is attributed to AI-driven uncertainties (notably Claude and Codex), a sudden drain in private credit liquidity, and rising interest rates. Sponsors are resorting to continuation vehicles and convertible preferred rounds, while the market awaits more data and potential IPOs from Anthropic, OpenAI, and SpaceX.

The Board of Peace, established by US President Donald Trump, has submitted its first report to the UN Security Council, blaming Hamas for obstructing the transition to the second phase of the Gaza ceasefire. The report cites Hamas's refusal to accept verified decommissioning of weapons, relinquish coercive control, and permit a civilian transition as the principal obstacle. Despite an October ceasefire, daily violence continues with Israeli strikes and mutual accusations of truce violations. The report emphasizes that decommissioning is critical for reconstruction, Israeli withdrawal, and a pathway to Palestinian self-determination.

The European Union has approved the Turnberry trade agreement with the United States, but included an emergency safeguard clause that allows the EU to suspend privileges if the US fails to comply or if European companies face disadvantages. The deal was negotiated by EU Parliament trade committee chair Bernd Lange, who emphasized the EU's collective decision-making as a contrast to President Trump's unilateral approach.

President Trump launched a Truth Social attack on Senate Parliamentarian Elizabeth MacDonough, accusing her of unfair rulings against Republicans and calling for her replacement. He also renewed calls to eliminate the legislative filibuster, warning that Democrats would otherwise add DC and Puerto Rico as states. Senate Majority Leader John Thune expressed concern over the attacks, noting they could make MacDonough a security target, and dismissed the idea of firing her, warning it would complicate vote counting for the reconciliation package. The dispute stems from MacDonough's ruling that security funding for a new White House ballroom did not qualify for budget reconciliation.

Michael C. Horowitz argues in War on the Rocks that the US Navy must urgently shift to a 'precise mass' strategy to maintain deterrence in the Indo-Pacific, particularly against China. He recommends investing in medium autonomous warships (Collaborative Combat Surface Vessels), small surface drones for the Hellscape concept, and low-cost cruise missiles and one-way attack drones. The current fleet of 291 ships is below mandated levels, shipbuilding is behind schedule and over budget, and the Iran war has depleted munitions stocks. Building autonomous ships in yacht yards could rapidly expand capacity. The primary barrier is organizational resistance to change.

Background: US Army Secretary Dan Driscoll previously testified that Ukraine's Delta command system outperforms US systems, and the Army launched Operation Jailbreak to adopt similar integration. Today: Senior US officials, including Secretary of State Marco Rubio and Army Secretary Dan Driscoll, publicly praised Ukraine's armed forces as the strongest in Europe and highlighted Ukraine's advanced Delta command-and-control system, which integrates drones, sensors, and weapons into a single network. This contrasts with President Trump's downplaying of Ukrainian capabilities. The US Army is now working to adopt similar open-architecture systems, and Ukrainian counter-drone technology has been deployed to protect US installations in Saudi Arabia. Ukraine's offensive operations now exceed Russia's for the first time, with Russian casualties 3.5 times higher than Ukrainian losses. The Delta system has grown to 270,000 registered users, up from 200,000 in December. The US Army's Operation Jailbreak at Fort Carson aims to rewire legacy systems to share data and layer in generative AI, inspired by Ukrainian practices.

A TelevisaUnivision/Harris poll of 700 Hispanic registered voters in 17 competitive US House districts, conducted online April 24–May 6, 2026 (margin of error ±4.7 percentage points), shows high fluidity ahead of the 2026 midterms: 52% are undecided or could change their minds. Trump's approval among Latinos who voted for him has dropped sharply from 93% to 66%, and 78% of Hispanic adults view his policies as harmful. Economic frustration is widespread, with 73% of respondents saying they are merely surviving financially. The data suggests a dealignment rather than a realignment, leaving both parties competing for the Latino vote.

Al Jazeera reports that AIPAC, the largest pro-Israel lobby group in the US, is channeling tens of millions of dollars through shell political action committees (PACs) with deceptive names to defeat candidates critical of Israel in the 2026 US midterm primaries. The report details how funds are layered through multiple PACs to obscure the source, citing examples in Illinois, Pennsylvania, and Kentucky. Critics argue this undermines election transparency and reflects AIPAC's declining popularity among Democratic voters due to its support for Israeli policies in Gaza.

The 21st Century ROAD to Housing Act, a sweeping housing affordability bill that passed the Senate with broad bipartisan support, faced House conservative opposition over a provision requiring institutional investors to sell build-to-rent homes. The House passed an amended version 396-13 that strips that provision, with all opposing votes from Republicans. Speaker Johnson used a fast-track process requiring two-thirds support. President Trump signaled support for the House version. The bill now returns to the Senate, where its passage is uncertain and would need Democratic support to overcome a filibuster. Senate Banking Committee Chair Tim Scott and ranking member Elizabeth Warren issued a joint statement committing to work with the White House and House on a bill that can pass the Senate.

The US Treasury Department imposed sanctions on over 12 entities and individuals linked to two networks supporting the Sinaloa Cartel's fentanyl trafficking and money laundering operations. The action targets key figures Armando de Jesus Ojeda Aviles and Jesus Gonzalez Penuelas, following earlier visa restrictions by the State Department. The move is part of the Trump administration's broader crackdown on drug trafficking designated as a national security threat.

Health Secretary Robert F. Kennedy Jr. fired the two vice chairs of the U.S. Preventive Services Task Force, John Wong and Esa Davis, on May 11, 2026, citing a review of appointments and a Supreme Court ruling affirming his authority. The dismissals leave the panel with only eight of 16 seats filled, raising concerns about political interference in evidence-based preventive health guidelines that determine which services insurers must cover at no cost under the Affordable Care Act.

The Digital Asset Market Clarity Act, a cryptocurrency regulation bill, advanced out of the Senate Banking Committee with a 15-9 bipartisan vote on Thursday, gaining support from all Republicans and two Democrats (Gallego and Alsobrooks). However, Alsobrooks warned her vote was not a commitment for the floor. The bill now faces four major hurdles: (1) Democratic fence-sitters, including several crypto-friendly members who declined to support it in committee; (2) law enforcement opposition to a provision exempting developers who do not control customer funds from being considered money transmitters, with groups like the National District Attorneys' Association arguing it would impede criminal investigations; (3) banking industry pushback on stablecoin reward rules, claiming the current language still threatens bank deposits; and (4) a tight legislative calendar, with analysts suggesting the bill must pass the Senate by July or August to survive before the midterm elections. The bill must secure at least eight Democratic votes on the Senate floor and be reconciled with a companion piece passed by the Senate Agriculture Committee in January and the House version passed last July.

Background: A US federal judge had temporarily blocked Trump administration sanctions against UN Special Rapporteur Francesca Albanese, ruling they likely violated her free speech rights. The US Treasury Department has formally removed Albanese from its Specially Designated Nationals list, lifting restrictions that had barred her from US banking, payment systems, global banking, credit card services, entry into the US, and business with US-based entities. The removal follows the court's preliminary injunction in a lawsuit filed by her husband and daughter in February 2026. Albanese, an Italian citizen living in Tunisia, was sanctioned in July 2025 by Secretary of State Marco Rubio after she encouraged the International Criminal Court to pursue war crimes prosecutions against Israeli officials for actions in Gaza.

Rep. Nancy Mace (R-S.C.) introduced a joint resolution for a constitutional amendment that would prohibit naturalized U.S. citizens from serving in Congress, as federal judges, or in Senate-confirmed positions. Mace argued that officials born abroad could have divided loyalties, citing three Democratic representatives born outside the U.S. The proposal has been condemned by targeted lawmakers as racist and xenophobic.

Background: Mexican President Claudia Sheinbaum has been navigating tensions between US demands on immigration and trade and her party's nationalist expectations, with US accusations of official collusion with cartels straining relations. Today: Sheinbaum has implemented a new security strategy combining military pressure with intelligence, marked by the killing of Jalisco cartel leader El Mencho on February 22, 2025, the first major operation under her administration. She has deployed over 160,000 troops nationwide, doubled the rate of clashes with cartels, and arrested over 50,000 suspects. While official data shows a 41% drop in homicides, independent analysts question the figures. Challenges persist: cartel retaliation across 20 states, compromised crime scene evidence, and ongoing US tensions over sovereignty. The US indictment of Sinaloa Governor Rubén Rocha Moya and other officials for collusion with cartels has further strained relations, with Sheinbaum questioning the evidence. Reports of unauthorized CIA operations in Mexico have exacerbated tensions.

The Trump administration is pushing to increase US energy exports to India, leveraging India's interest in diversifying its energy sources amid the US-Israeli war on Iran and the blockade of the Strait of Hormuz. US Ambassador to India Sergio Gor confirmed India's receptiveness, ahead of a planned visit by Secretary of State Marco Rubio.

Admiral Pierre Vandier, head of NATO's Allied Command Transformation, is accelerating the alliance's adoption of drones, artificial intelligence, and other advanced capabilities. He warned that NATO must move beyond planning to deliver combat-ready systems quickly, citing Russia's ongoing war in Ukraine as a driver for urgent change.