Washington, DC

1. The HoneyThune is over
2. Iran deal details emerge
3. Warsh keeps rates steady
4. AI CEOs pitch guardrails forum
5. Democratic socialist nears DC victory

S&P 500 ▼ 1.2% after the Fed hinted at future rate hikes.

Trump-Thune relationship captivates GOP

If President Donald Trump were trying to make Senate Majority Leader John Thune’s job difficult, it’s hard to see what he would be doing differently, Semafor’s Burgess Everett and Shelby Talcott report. The president’s cancellation of Jay Clayton’s confirmation hearing today comes after weeks of discord over Bill Pulte, an expired surveillance law, and Trump’s ousting of two GOP senators, plus his demands for ballroom security funding and his “anti-weaponization” fund. “The president has put Leader Thune in a very difficult position,” said Sen. Susan Collins, R-Maine. Some argue Trump’s frustration with the Senate is justified: “You got to play to win; don’t play to survive. And we’re not getting anything done,” said Sen. Tommy Tuberville, R-Ala. Notably, the White House sent Semafor a statement supportive of Thune: “The White House and President Trump have enjoyed working closely with Leader Thune and Senate Republicans.”

Trump cut Iran deal to avoid ‘economic catastrophe’

The markets forced Trump’s hand, again. Speaking at a press conference on the final day of the G7 summit in France, Trump defended the terms of the interim peace deal he’d reached with Iran, which reopens the Strait of Hormuz in exchange for the unfreezing of billions in Iranian assets and the creation of a $300 billion reconstruction fund, seeded with private investment. Trump said he feared becoming the next Herbert Hoover, whose presidency was defined by the Great Depression. “He was always the one I didn’t want to be,” Trump said of the 31st president. “I didn’t want to see an economic catastrophe.” The US-Iran memorandum of understanding has been under wraps since it was announced on Friday. A senior US official read it to reporters today, including Semafor’s Shelby Talcott, who posted a transcript of the text as read.

Fed elects to stay the course — for now

The Federal Reserve said this afternoon that it had voted unanimously to hold interest rates steady while signaling a more hawkish lean. Nine out of 19 total officials penciled in an interest rate hike this year; just one penciled in an interest rate cut; and newly installed Fed Chair Kevin Warsh did not predict any interest rate move after speaking out against the practice, known colloquially as the dot plot, during his confirmation process. “For me, it’s not helpful,” he told reporters. Officials struck language from their statement that signaled their next most likely move. As for further reforms, Warsh said he planned to appoint five task forces that can propose changes by the end of the year to the Fed’s communications practices, balance sheets, data sources, labor market productivity, and inflation frameworks.

— Eleanor Mueller

AI CEOs pitch G7 leaders on global safeguards forum

AI executives met with heads of state at the G7 summit over lunch today and discussed how to create an international forum, potentially helmed by the US, that could establish global standards for advanced models — an idea floated by OpenAI CEO Sam Altman, reports Semafor’s Eleanor Mueller. Altman, who sat between Trump and Egyptian President Abdel Fattah el-Sisi, was the first CEO to speak, an OpenAI official said. OpenAI’s Chris Lehane told reporters afterward that “there was really a coalescing amongst the countries and the businesses … in the room around this idea … of being able to try to create; design; develop a forum or a space for the different democratic countries to be able to work together to ultimately see if there’s a way to establish some type of standards.” Anthropic’s Dario Amodei, Google’s Demis Hassabis, and other technology executives also attended.

Trump foe leads in DC Democratic mayoral primary

DC Democratic primary voters look likely to nominate Janeese Lewis George for mayor, a victory for the city’s left wing and its chapter of the Democratic Socialists for America. “Tonight, DC made its demand,” Lewis George told supporters yesterday, quoting Frederick Douglass. The defeat of Kenyan McDuffie, a more moderate candidate, would scrap expected continuity with outgoing Democratic Mayor Muriel Bowser. Lewis George has pledged to build more housing and pay for more services, despite the city’s DOGE-driven economic downturn. She was the latest Democrat to benefit when the president attacked her — specifically, when asked what he’d do if a socialist won in DC. “Maybe we take back Washington, run it on the federal basis,” he told reporters last week, though congressional control of the city becomes far less likely if Republicans lose the House in November.

— David Weigel

As companies confront declining engagement, rapid technological change, and growing political and regulatory pressures, leaders are reassessing the foundations of performance, trust, and long-term success.

On July 22 in Washington, DC, Semafor will convene The World of Work to examine how executives are navigating workforce transformation, economic volatility, and the evolving demands of leadership.

Through on-the-record conversations, Semafor editors will engage business leaders, policymakers, and innovators, including Katy George, Corporate Vice President, Workforce Transformation, Microsoft; Claire MacIntyre, Chief People Officer, Sam’s Club; Amanda Carroll, Co-Managing Director, Gensler; and more to explore how AI adoption, changing employee priorities, and a shifting business landscape are redefining the future of work.

July 22 | Washington, DC | Request Invite

White House

• President Trump is planning to install a permanent fence around parts of Lafayette Square, the public park across the street from the White House, making it easier to close the area for security reasons. — WaPo
• July Fourth events will ground flights in DC. — NYT

Courts

• The Justice Department is asking a federal appeals court to let President Trump continue building his White House ballroom, pointing to the foiled attack on the UFC event this weekend.
• Luigi Mangione, the man accused of fatally shooting UnitedHealthcare CEO Brian Thompson in 2024, plans to argue in his defense at trial that he was in a state of “extreme emotional disturbance.”

Congress

• Senators are threatening to freeze Defense Secretary Pete Hegseth’s travel budget unless the Pentagon releases more information on the deadly bombing at an Iranian girls’ school and strikes on alleged drug smugglers in Latin American waters. — Politico
• Senate Democrats added child care to their affordability agenda after releasing a report on its rising cost.
• The mother of the Cabo Verde national team’s goalkeeper, who couldn’t afford a visa bond, will be able to go to the team’s next World Cup match in the US, after House Minority Leader Hakeem Jeffries spoke with Secretary of State Marco Rubio and they intervened, Jeffries’ office said.

Health

• The Trump administration’s federal spending reviews slowed government efforts to contain screwworm, delaying new facilities and research initiatives. — Politico
• Health Secretary Robert F. Kennedy Jr. announced more than $700 million in new funding aimed at addressing mental illness, addiction, and homelessness.
• The FTC sued the World Professional Association for Transgender Health, alleging the body made deceptive claims about gender care for minors.

Economy

• US consumers increased spending in May for the fourth straight month across a broad range of retailers, despite higher gas prices and inflation pressure.
• US pending home sales posted their strongest gain in nearly two years, signaling resilient housing demand despite high mortgage rates.

Campaigns

• House Republicans in Georgia have shelved plans to redraw congressional and legislative districts, citing ongoing litigation and the need for additional time to assess recent court decisions.

Immigration

• The death rate in US immigration facilities has more than doubled since President Trump returned to office. — Reuters

National Security

• President Trump is planning to ask US defense companies to produce weapons under license in Europe and Ukraine.

World

• The European Parliament urged Albania to suspend construction in protected areas, weighing in on the ongoing fight over Jared Kushner’s proposed luxury resort.
• Brazilian President Luiz Inácio ​Lula da Silva warned President Trump to “stay out” of Brazil’s elections.
• The UAE is working on a plan to end its dependence on the Strait of Hormuz. — Bloomberg

Environment

• The Trump administration said it will pay $765 million to terminate four offshore wind leases off the coasts of New York, California, and Maine, with the funds focused on developing natural gas power plants and geothermal projects instead.

— President Trump,