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    Fed firing fix, lowering Guard rails and Israeli hospital hit

     
    Today's ECONOMY story

    Trump says he's firing Federal Reserve governor

    What happened
    President Donald Trump yesterday said he had fired Federal Reserve Governor Lisa Cook (pictured above), justifying the unprecedented move by citing unproven allegations of mortgage fraud. Cook, an economist whose term expires in 2038, said Trump had "no authority" to fire her "'for cause' when no cause exists under the law" and "I will not resign." Trump's maneuver was widely seen as an escalation of his push to pressure the historically independent central bank to sharply cut interest rates.

    Who said what
    Trump's "legally dubious" move to fire Cook, the first Black woman on the Fed's board of governors, "fit an emerging pattern of political retribution" against his "perceived enemies" using mortgage fraud allegations raised by Bill Pulte, the head of the Federal Housing Finance Agency, The New York Times said. Pulte has "trotted out similar allegations" against Sen. Adam Schiff (D-Calif.) and New York Attorney General Letitia James. No charges have been filed.

    Trump is "using the criminal justice system to remove people from office over policy disagreements," Michael Strain, from the conservative American Enterprise Institute, told The Washington Post. "That is extremely dangerous and is, in the case of the Fed, a threat to long-term prosperity."

    "By design, the Fed is unusually insulated from the give-and-take of politics," The Wall Street Journal said, and none of its governors "has ever been targeted for removal by the president." But "Richard Nixon and Lyndon Johnson put heavy pressure on the Fed" to "keep interest rates low," The Associated Press said, and that has "widely been blamed for touching off rampant inflation in the late 1960s and '70s." Trump's move could similarly "backfire" if investors "demand higher interest rates" to "compensate for the higher risk of inflation" from a politically compromised Fed, the Post said.

    What next?
    It is "unclear how the matter might play out from here," Reuters said, "with Trump saying the firing was 'effective immediately,' and the Fed set to hold a policy meeting on Sept. 16-17." Legal experts were skeptical that Trump's maneuver was legally valid, the AP said, and it is "likely to touch off an extensive legal battle that will probably go to the Supreme Court."

     
     
    Today's NATIONAL story

    Trump expands National Guard role in policing

    What happened
    President Donald Trump yesterday ordered Defense Secretary Pete Hegseth to create a new "specialized" National Guard unit "dedicated to ensuring public safety and order" in Washington, D.C., and to ensure that every state's Guard is prepared to take a larger role in domestic law enforcement, including "quelling civil disturbances." Trump also called for a standing National Guard "quick reaction force" that could deploy anywhere in the U.S. on short notice.

    Who said what
    Creating these new National Guard units is the "clearest sign yet" that Trump intends to "expand the U.S. military's role in domestic law enforcement activities across the country," potentially for "political purposes," said CNN. The expansion of military policing comes as Trump "threatens to broaden deployments of the National Guard in cities run by his political enemies," starting with Chicago, The New York Times said. 

    Using the National Guard as police in states that don't want such deployments is "illegal," "unconstitutional," "un-American," and "exactly the type of overreach that our country’s founders warned against," Illinois Gov. J.B. Pritzker (D) said yesterday. "If it sounds to you like I am alarmist, that is because I am ringing an alarm."

    What next?
    Asked about his suggestion he would send troops to Chicago, Trump "hedged," the Times said. "We may wait," he told reporters. "We may or may not, we may just go in and do it, which is probably what we should do." The Pentagon said it was "reviewing" Trump's orders and "specific requirements" and "will provide updates or announcements as appropriate."

     
     
    Today's INTERNATIONAL Story

    Israeli double strike on Gaza hospital kills 20

    What happened
    Israel yesterday struck Nasser hospital in southern Gaza, killing two people, then hit it again minutes later, killing at least 18 others, including rescuers and journalists who had rushed to the scene. The five journalists killed worked for The Associated Press, Reuters, Al Jazeera and Middle East Eye, a U.K.-based outlet.

    Who said what
    In a joint letter to Israel, the AP and Reuters said they were "outraged" that freelance journalists Mariam Dagga and Moaz Abu Taha (pictured above), Abu Aziz, Hussam al-Masri and Mohammed Salama "were among the victims of this strike on the hospital, a location that is protected under international law." It appears Israel met "none" of the legal conditions to attack a hospital, Adil Haque, an expert on the law of armed conflict at Rutgers University, told The Washington Post. And it's "rarely lawful to carry out 'double-tap' strikes on the same target in a populated area."

    Israel has "attacked hospitals multiple times throughout the war," often asserting without evidence that "Hamas embeds itself in and around the facilities," the AP said. Gaza's remaining hospitals "have been overwhelmed by the dead, wounded and now by increasing numbers of malnourished," the subject of Dagga's recent reporting. 

    The Israel Defense Forces said it "regrets any harm to uninvolved individuals and does not target journalists as such." According to the Committee to Protect Journalists, Israel has killed 189 Palestinian journalists in its Gaza campaign, some deliberately. The United Nations says more than 1,500 health workers have been killed.

    What next?
    Prime Minister Benjamin Netanyahu said Israel "deeply regrets the tragic mishap" and was investigating the strikes.

     
     

    It's not all bad

    A lighthearted TikTok about Glasgow's rainy summers has turned Torgi Squire, a 43-year-old teacher, into the face of a global conversation about the Black diaspora. His viral post, viewed 4 million times, surprised some Americans, who expressed their "amazement and delight" at discovering a Black man with a "strong Scottish accent," said The Guardian. Squire said he is happy his video had such an impact, and the connections he made because of it have "really enriched my life."

     
     
    Under the radar

    China is silently expanding its influence in US cities

    It has been well documented that China interferes in American elections, with particular evidence of tampering in the 2024 presidential race. But according to an investigation by The New York Times, China's influence may be more widespread than thought.

    Numerous social clubs backed by China have been working to sway local politics in New York City, the Times found. These clubs have "undermined a congressional candidate who once challenged the regime on Chinese television, helped unseat a state senator for attending a banquet with the president of Taiwan and condemned a city council candidate on social media for supporting Hong Kong democracy."

    The clubs, known as hometown associations, have "become useful tools of China's consulate in Manhattan's midtown," the Times said, citing "dozens of group members, politicians and former prosecutors." This has "allowed America's most formidable adversary to influence elections in the country's largest city."

    At least "50 organizations with ties to Beijing have mobilized members to fundraise or endorse political candidates over the past five years," said the Times. Chinese officials deny these allegations. 

    Numerous reports have also emerged of China attempting to exert control in cities throughout California. In San Francisco, several "Chinese diplomats and pro-China diaspora groups" organized demonstrations that "harassed and silenced protesters opposed to Beijing's policies," said The Washington Post. This type of behavior shows how the Chinese Communist Party is "willing to extend its intolerance of any dissent into the United States and target people exercising their First Amendment rights in an American city."

     
     
    On this day

    August 26, 1748

    The first Lutheran church in North America, the Pennsylvania Ministerium, was founded in Philadelphia. The church had a sizable role in Lutheran affairs for much of U.S. history before its closure in 1918. Today, there are more than 8,000 Lutheran churches in the country.

     
     
    TODAY'S newspaperS

    'Chicago on guard'

    "Trump expands Guard's role in policing," The Minnesota Star Tribune says on Tuesday's front page. "Crackdown in D.C. turns minor arrests into federal cases," The New York Times says. "Chicago on guard," the Chicago Sun-Times says. "Do not come," Illinois Gov. J.B. Pritzker "tells Trump on troops," the Chicago Tribune says. Kilmar Abrego García "facing new deportation efforts," The Atlanta Journal-Constitution says. "Judge keeps Abrego in U.S.," says The Washington Post. "Father of 2 Marines sent to Alligator Alcatraz" after traffic stop, The Palm Beach Post says. "Truckers targeted over lack of English," USA Today says. "Russia feels fuel crunch as Kyiv hits refineries," says The Wall Street Journal.

    ► See the newspaper front pages

     
     
    Tall tale

    No rats in this subway

    Chinese YouTuber Xing Zhilei spent four months building a miniature subway system for his cats, constructing tunnels, an escalator and a train with doors that open once it reaches the platform. The subway is the latest addition to Xing's elaborate CatTown, which includes a grocery store, theater, spa and garage. Xing, who has an engineering background, says the two biggest obstacles were figuring out how to synchronize the train and platform doors and making a working escalator.

     
     

    Morning Report was written and edited by Nadia Croes, Catherine Garcia, Scott Hocker, Anya Jaremko-Greenwold, Justin Klawans, Rafi Schwartz Peter Weber and Kari Wilkin, with illustrations by Stephen Kelly and Julia Wytrazek.

    Image credits, from top: Al Drago / Bloomberg via Getty Images; Yasin Ozturk / Anadolu / Getty Images; Bashar Taleb / AFP via Getty Images; Eric Risberg / AP Photo
     

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