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The Latest: Trump’s economic disruptions moving markets downward

Ahala Software > Blog > News > The Latest: Trump’s economic disruptions moving markets downward
  • March 7, 2025
  • News


President Donald Trump has issued what he called a “last warning” to Hamas to release all remaining hostages held in Gaza. He also met with eight released hostages and recently dispatched an envoy for unprecedented direct talks with the militant group.

Meanwhile Trump administration officials said positive talks between Washington and Kyiv mean Trump’s suspension of intelligence-sharing may be short.

On tariffs, Canada signaled that Trump’s delay of consumer taxes on the auto industry aren’t enough — they say Prime Minister Justin Trudeau won’t lift retaliatory Canadian tariffs on the United States if Trump leaves any U.S. tariffs in place.

On Trump’s efforts to dismantle much of the federal government, the nation’s top public health agency says about 180 CDC employees who were laid off two weeks ago can come back to work.

Here’s the latest:

Just last week, there were moves to reassign the Voice of America’s White House bureau chief and to investigate the social media practices of another veteran correspondent, who was effectively put on paid leave.

President Donald Trump chose Arizona’s Kari Lake to lead the agency, but she can’t be installed because Trump fired members of the board empowered to do that. So now she’s on board as a “special advisor.”

The agency’s charter requires its journalists to deliver independent news and information, and not be a government mouthpiece. Trump posted that Lake will help “ensure that the American values of Freedom and Liberty are broadcast around the world.”

▶ Read more on changes at the VOA

The grants and loans involved potentially total trillions of dollars.

U.S. District Court Judge John McConnell in Rhode Island, who had already approved a temporary restraining order on the funding freeze, on Thursday granted the request for a preliminary injunction from nearly two dozen Democratic states.

Last month, the White House said it would temporarily halt federal funding to ensure that the payments complied with President Donald Trump’s orders barring diversity programs. Government lawyers argued the court lacks the constitutional authority to block a funding pause by the Republican administration.

▶ Read more about court action on funding freeze

A surgeon, author, researcher and Fox News contributor, Dr. Marty Makary is known for his contrarian views and outspoken criticism of the medical establishment. Like health secretary Robert F. Kennedy Jr., Makary traces many of the health issues afflicting Americans to food additives, overprescribing of drugs and the influence of drugmakers, insurers and food companies.

Republicans generally support Kennedy’s “Make America Healthy Again” agenda. But Senate Democrats are expected to press Makary on his willingness to break with Kennedy on some scientific issues.

If confirmed to lead the Food and Drug Administration, Makary would take over a shaken agency, which fired hundreds of employees only to quickly rehire some of them.

Anxiety has returned to Wall Street with markets poised to give back much of Wednesday’s gains, which were spurred by President Donald Trump’s one-month exemption for U.S. automakers on his 25% tariffs for Mexican and Canadian imports.

Futures for the S&P 500, Dow Jones Industrial Average and Nasdaq all slid in premarket trading. Shares in retailers Macy’s and Victoria’s Secret fell sharply as consumer confidence tanks.

Applications for U.S. jobless benefits fell, showing the labor market was steady ahead of the purge of federal employees.

And Europe’s Central Bank lowered interest rates to support consumers and businesses bracing for Trump to impose new import taxes on U.S. consumers buying European goods.

The U.S. has paused its intelligence sharing with Ukraine, cutting off the flow of vital information that has helped the war-torn nation target Russian invaders, but Trump administration officials said Wednesday that positive talks between Washington and Kyiv mean it may only be a short suspension.

Information about Russia’s intentions and military movements has been critical to Ukraine’s defense and a strong indication of support from the U.S. and other Western allies. The suspension comes after Trump paused military aid to Ukraine and is another sign of how he has transformed America’s relationship with close allies.

“We have taken a step back and are pausing and reviewing all aspects of this relationship,” national security adviser Mike Waltz said Wednesday.

Comments from top Trump administration officials suggest the decision is part of the broader negotiations between Trump and Ukrainian President Volodymyr Zelenskyy to negotiate a peace deal with Russia, and that intelligence could begin flowing to Ukraine again soon.

CIA Director John Ratcliffe called the suspension a “pause” and said it came after the disastrous meeting between Trump and Zelenskyy in the Oval Office last week. Ratcliffe said Trump wanted to know that Zelenskyy was serious about peace.

▶ Read more about the suspension of U.S. aid to Ukraine

The mass firing of federal employees since Trump took office in January is pushing out veterans who make up 30% of the nation’s federal workforce. The exact number of veterans who have lost their job is unknown, although House Democrats last month estimated that it was potentially in the thousands.

More could be on the way. The Department of Veterans Affairs — a major employer of veterans — is planning a reorganization that includes cutting over 80,000 jobs from the sprawling agency, according to an internal memo obtained by The Associated Press. Veterans represent more than 25% of the VA’s workforce.

In interviews, several veterans who supported candidates of both parties described their recent job losses as a betrayal of their military service. They are particularly angered by how it happened: in an email that cited inadequate job performance — despite, they say, receiving positive reviews in their roles.

▶ Read more about the veterans losing their federal jobs

Israelis take part in a protest against Israeli Prime Minister Benjamin Netanyahu’s government, and the release of the hostages held in the Gaza Strip by the Hamas militant group, in Jerusalem,Sunday, March 2, 2025. (AP Photo/Ohad Zwigenberg)

Trump on Wednesday issued what he called a “last warning” to Hamas to release all remaining hostages held in Gaza, directing a sharply worded message after the White House confirmed that he had recently dispatched an envoy for unprecedented direct talks with the militant group.

In a statement on his Truth Social platform soon after meeting at the White House with eight former hostages, Trump added that he was “sending Israel everything it needs to finish the job.”

The pointed language from Trump came after the White House said Wednesday that U.S. officials have engaged in “ongoing talks and discussions” with Hamas officials, stepping away from a long-held U.S. policy of not directly engaging with the militant group.

Confirmation of the talks in the Qatari capital of Doha came as the Israel-Hamas ceasefire remains in the balance. It’s the first known direct engagement between the United States and Hamas since the State Department designated the group a foreign terrorist organization in 1997.

▶Read more about the negotiation talks



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