President Trump's next round of tariffs on Chinese imports will raise the average trade war cost for U.S. households to $1,000 per year, from $600, because the new duties will largely hit finished consumer goods, JP Morgan Chase researchers said Monday. The tariffs would largely negate any extra money consumers got from Trump's $1.5 trillion tax cut, and unlike with tax-subsidized farmers, "there is no simple way to compensate consumer," Dubravko Lakos-Bujas, JP Morgan's head of U.S. equity strategy, wrote to investors.

Consumer spending is the brightest spot in the U.S. economy right now, and facing slowdowns in manufacturing and business spending, and other warnings signs of a possible recession, the White House is now exploring a payroll tax cut to encourage Americans to keep their wallets open, The Washington Post and The New York Times report, citing several people familiar with the discussions. White House economic adviser Larry Kudlow is also reportedly advocating a capital gains tax cut, which would mostly benefit wealthy investors but, unlike the payroll cut, wouldn't require approval by Congress.

Payroll tax cuts, typically popular among Democrats because they benefit middle class workers, either drain money from Social Security and Medicare accounts or add to the ballooning deficit, already up 27 percent from last year. The White House said Monday that "cutting payroll taxes is not something under consideration at this time," despite Monday's White House discussions and an internal white paper exploring the idea.

Publicly, Trump administration officials have been dismissing the idea of a recession, but "Trump has sent mixed messages," the Post notes. He tweeted that the economy is "very strong," then specifically urged the Federal Reserve to cut already-low interest rates by 100 basis points and pump more money into the economy through "quantitative easing." Cutting benchmark interest rates to 1.25 percent would give the Fed "little additional wiggle room to maneuver if a full-fledged recession began," the Post reports, and quantitative easing is "an extreme step that central bankers take when they are trying to urgently address a slumping economy." Peter Weber

President Trump has granted pardons to 73 individuals and commuted an additional 70 sentences, the White House announced early Wednesday morning.

There are several well-known names on the list, including Stephen Bannon, Trump's former chief strategist; Elliott Broidy, a major Trump fundraiser and former deputy national finance chair of the Republican National Committee; rapper Lil Wayne; and former Detroit Mayor Kwame Kilpatrick. Trump also pardoned or commuted the sentences of individuals — including several former members of Congress — convicted of drug offenses, fraud, and lying to federal investigators.

In 2013, Kilpatrick was convicted for his part in a racketeering and bribery scheme conducted while in office; Trump commuted his sentence after Kilpatrick served seven years in prison. The White House said several people — including social media personalities Diamond and Silk and televangelist Paula White — supported this commutation.

Similarly, there were several people pushing Trump to grant Broidy a full pardon — the White House said Broidy had the support of Rep. Devin Nunes (R-Calif.), Rep. Ken Calvert (R-Calif.), and former U.S. Ambassador to Germany Ric Grenell. Broidy pleaded guilty in October to conspiring to violate foreign lobbying laws, and was scheduled to be sentenced in February.

Bannon, however, did not have a long list of supporters. The White House simply said Bannon — who was charged with defrauding investors through a group called "We Build the Wall" — received a full pardon and "has been an important leader in the conservative movement and is known for his political acumen." The organization received donations from Trump fans, something that was not lost on Rep. Adam Schiff (D-Calif.):

Last month, Trump pardoned his former campaign chairman Paul Manafort and longtime friend Roger Stone. He still has a few more hours to issue additional pardons and commutations, but is not expected to do so. Catherine Garcia

President Trump pardoned Stephen Bannon, his 2016 campaign chairman and one-time White House aide, late Tuesday amid a final flurry of executive clemency with just hours left in his administration. Bannon was arrested in August and charged with defrauding investors, mostly Trump supporters, through a group called "We Build the Wall."

In its pardon notice, the White House said Bannon had received "a full pardon" for "charges related to fraud stemming from his involvement in a political project," adding that the former Breitbart News chief "has been an important leader in the conservative movement and is known for his political acumen." Trump has already pardoned another 2016 campaign chairman, Paul Manafort, as well as longtime ally Roger Stone and other 2016 advisers and allies.

The "We Build the Wall" campaign raised more than $25 million, ostensibly to build border wall between the U.S. and Mexico. Federal prosecutors alleged that Bannon siphoned off more than $1 million through a nonprofit he controlled and gave hundreds of thousands of dollars to another organizer, Brian Kolfage, who was also charged in the alleged scheme. Kolfage was not on Trump's pardon list. Trump distanced himself from Bannon and the fundraising project after the arrests, and aides believed Bannon was not going to get a pardon up until Tuesday, CNN reports.

Trump "made the decision on Mr. Bannon after a day of frantic efforts to sway his thinking, including from Mr. Bannon himself, who spoke to him by phone on Tuesday," The New York Times reports. After Bannon helped elect Trump and joined his White House, the two had a dramatic falling-out when Bannon told journalist Michael Wolff, for his book Fire and Fury, that Ivanka Trump is "dumb as a brick" and Donald Trump Jr. had acted "treasonous" by meeting with Russian agents during the campaign. But since last summer, "Bannon has slowly come back into the Trump orbit," The Washington Post notes.

Bannon may still be in legal jeopardy for his work with exiled Chinese billionaire Guo Wengui, and state prosecutors might still be able to charge him for any "We Build the Wall" fraud. Peter Weber

Ashton Edwards is changing ballet for the better.

Edwards, 18, is a member of the Pacific Northwest Ballet's Professional Division in Seattle. He started studying classical ballet at 4, and after years of performing traditional male roles, Edwards became intrigued by the idea of trying something that is traditionally for women: dancing en pointe.

"It took a lot of searching within myself," Edwards told NPR. "But I think my goals in life and in my career and who I saw myself as a person were much bigger than just one small box I was put in. So I decided to explore." Because ballet has such clear divisions between male and female roles, Edwards didn't know if his school would be open to him dancing en pointe, and was thrilled when they were "open and accepting."

Peter Boal, artistic director for the Pacific Northwest Ballet, told NPR "ballet can be a little slow," and when Edwards asked to study en pointe, "we said, 'Why not? Lead us and we will work with you.'" It usually takes several years of training before a dancer can put on their en pointe shoes, but after just six months, Edwards had the strength and technique necessary. Those shoes "have their challenges," he said, but it's all worth it: "Once you're up and once you start dancing, you're floating, and it feels like flying I think. It's amazing." Catherine Garcia

Sen. Richard Burr (R-N.C.) said Tuesday that the Justice Department has informed him it will not prosecute him for insider trading, making him the last of five senators known to have been investigated for selling stocks right before the market crashed when the COVID-19 pandemic hit. Burr sold up to $1.7 million worth of stock on Feb. 13, 2020, days after receiving briefings on the emerging coronavirus threat. Burr at the time was chairman of the Senate Intelligence Committee and a member of the Senate health committee.

Burr has acknowledged he sold the shares because of the pandemic, but says he was guided solely by public news sources, specifically CNBC's Asia health and science reporting. After the FBI executed a search warrant and seized his cellphone in May, he stepped down as chairman of the Intelligence Committee. Democrats take control of the Senate on Wednesday, and it's unclear if Burr will seek the top GOP slot on either the intelligence or health committees now that the investigation is over.

Three of the other senators investigated for possible insider trading — Kelly Loeffler (R-Ga.), James Inhofe (R-Okla.), and Dianne Feinstein (D-Calif.) — were cleared in May. An investigation into Sen. David Perdue (R-Ga.)'s stock trades expanded but then was closed in August, The New York Times reports. Perdue and Loeffler were both defeated in special elections earlier this month and their Democratic successors will be sworn in Wednesday.

Burr has already said he plans to step down after his term ends in 2022, but the timing of his exculpation, on the final day of the Trump administration, raised some eyebrows. President Trump was not a fan of Burr, who led a bipartisan investigation into Russia's interference in the 2016 election, though Burr will now sit as a juror in Trump's second impeachment trial.

It was always a steep climb for prosecutors to prove criminality in congressional insider trading cases, The Washington Post reports. "The law under which Burr was investigated — the Stock Act, which prohibits members of Congress and other federal officials from trading on information they glean from their government work — has not been used as the basis for a criminal charge since it was passed in 2012." Peter Weber

President Trump has spent the last few days asking his friends, aides, and associates if they would like pardons — even those who are not facing any charges, a senior administration official told The Washington Post.

In one case, the official said, Trump offered a pardon to a person who declined the chance at clemency, saying they weren't in any legal trouble and hadn't committed any crimes. "Trump's response was, 'Yeah, well, but you never know. They're going to come after us all. Maybe it's not a bad idea. Just let me know,'" the official recounted.

Trump has taken a great interest in pardoning people, the Post reports, even calling families to personally let them know he granted a pardon. A person familiar with the matter told the Post that Trump was talked out of pardoning himself, family members, and controversial figures like Rudy Giuliani. An aide said there was also a brief discussion about possibly issuing pardons related to the Jan. 6 Capitol attack, but that idea went nowhere.

While Trump has held a few ceremonial events in recent weeks, journalists have been kept away from the White House, largely because the president is "just not in a place where they would go well," one official told the Post. Trump is constantly flip-flopping, another administration official said, talking about his future but uncertain of where he will be. "He goes between, 'Well, I'm going to go to Florida and play golf, and life is honestly better,' and then in the next moment, it's like, 'But don't you think there's a chance to stay?'" the official said. Read more at The Washington Post. Catherine Garcia

President-elect Joe Biden spent the night before his inauguration honoring the more than 400,000 Americans who have died of COVID-19.

During a Tuesday ceremony at the Lincoln Memorial, Biden said in order for the country to "heal, we must remember. It's hard sometimes to remember, but that's how we heal. It's important to do that as a nation. That's why we're here today."

The memorial's Reflecting Pool was surrounded by 400 lights, representing the victims of the pandemic. Other landmarks across the United States were also lit up to pay tribute to the dead, including the Space Needle in Seattle and Empire State Building in New York City.

Biden was joined by his wife, Dr. Jill Biden, Vice President-elect Kamala Harris, and her husband, Doug Emhoff. Harris also spoke, saying that for months, Americans have "grieved by ourselves. Tonight, we grieve and begin healing together. Though we may be physically separated, we, the American people, are united in spirit and my abiding hope, my abiding prayer, is that we emerge from this ordeal with a new wisdom: to cherish simple moments, to imagine new possibilities, and to open our hearts just a little bit more to one another." Catherine Garcia