Trump denies Powell rumors. The president said yesterday that he does not intend to fire Federal Reserve chair Jerome Powell, saying “I think it’s highly unlikely, unless he has to leave for fraud.” Reports emerged that Trump had been close to doing so in a meeting of Republican lawmakers. He has expressed irritation about Powell’s resistance to lowering interest rates and criticized a $2.5 billion Fed building renovation, saying “it’s possible there’s fraud involved.” Powell has said such suggestions are inaccurate and maintains that the president has no authority to remove Fed leaders.
Netanyahu coalition fractures. The ultra-Orthodox party Shas has said it will quit Prime Minister Benjamin Netanyahu’s coalition, leaving him with a minority in parliament. It is the second party to defect this week over objections to a proposed law that would change religious exemptions for serving in the country’s military. However, Shas said it could still vote with Netanyahu on other issues. Their departure comes as the Knesset heads into a three-month recess on July 27.
El Salvador rights group flees. A humanitarian rights organization has sent twenty members into exile amid President Nayib Bukele’s ongoing crackdown on critics, reports Reuters. The group, Cristobal, is known for investigations into Bukele’s government and says it is unsafe for its staff to continue their work. The only member left in the country is the group’s anticorruption director, who was jailed in May.
EU asylum shift. Spain has overtaken Germany as the destination for the highest number of asylum seekers in the European Union (EU) in a “significant shift,” according to an unpublished EU report seen by the Financial Times—though overall applications are down. It follows an “abrupt” drop in Syrian applicants after the fall of Bashar al-Assad last year; Germany was a popular destination for that group. The report also said the shift could relate to the Trump administration’s immigration policies, as Spain saw a boost in Venezuelan asylum requests.
Ukraine’s new PM. The country’s parliament voted in a new prime minister, Yuliia Svyrydenko, earlier today. Svyrydenko, a former deputy prime minister and economy minister, was tapped by Ukrainian President Volodymyr Zelenskyy to replace Denys Shmyhal in a major reshuffling motivated by relations with Washington. Svyrydenko pledged to audit public finances, expand weapons production, and keep the military supplied.
Iraq oil field attacks. Drone attacks have hit two oil fields in Iraq’s semi-autonomous Kurdish region this week. The first, at the Sarsang oil field on Tuesday, came only hours before the U.S. operator of the field signed an agreement for further development of another site. The second strike, at a field operated by a Norwegian company, temporarily shut down production. No group has claimed responsibility.
Underwater cable ban. The United States is moving to ban Chinese technology from being connected to underwater U.S. cables, the Federal Communications Commission (FCC) said yesterday. It would apply to Chinese businesses on an existing FCC list of potential natural security threats. The measure comes amid growing fear about espionage; an underwater network of more than 400 cables handles 99 percent of internet traffic.
UK-Germany deals. United Kingdom (UK) Prime Minister Keir Starmer and German Chancellor Friedrich Merz signed a new defense and migration deal in London today. The agreement aims to boost joint defense exports and tighten laws to address smuggling and migration.
