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Stipple portrait of Miguel Gonzalez

By Miguel Gonzalez

 

What We're Watching

Politics: Former President Donald Trump wrote on social media that he is set to meet with the New York attorney general today. The FBI search of his Florida home over sensitive documents could roil the November midterm elections and raise rare legal issues.

Biden Administration: President Biden is scheduled to sign into law at 10 a.m. ET a bill expanding veteran healthcare benefits. At 12:30 p.m. he is set to depart the White House for Charleston, S.C.

Economy: The Labor Department is scheduled to report the consumer-price index at 8:30 a.m. Follow our live coverage here.

 
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Politics

▶️Video​: WSJ's Corinne Ramey explains what the FBI would have needed before conducting the search of Donald Trump's Mar-a-Lago home in Florida. PHOTO: CRISTOBAL HERRERA-ULASHKEVICH

Mr. Trump's deposition today by the New York attorney general’s office is part of a civil-fraud investigation.

Since 2019, New York Attorney General Letitia James has been investigating whether Mr. Trump and his company made false representations to banks, tax authorities and insurers for financial gain, reports Corinne Ramey. Mr. Trump and his company have denied wrongdoing.

Federal agents' search of Mr. Trump's home on Monday came about two months after Trump lawyers met with Justice Department officials.

The agents conducted the search in part because they believed additional classified information remained at the private club after the National Archives retrieved more than a dozen boxes of White House documents from the resort earlier this year, people familiar with the matter said, report Sadie Gurman, Alex Leary and Aruna Viswanatha.

Many Republicans rallied around the former president. The developments both challenge and underscore Mr. Trump’s hold on the GOP, just as he is publicly considering a third run for the White House, report Siobhan Hughes, Alex Leary and Deborah Acosta.

A potential prosecution of Mr. Trump for violating government records laws could test seldom-used statutes and raise questions about whether the former president could be barred from running again if convicted, reports Corinne Ramey.

  • 🎧 The Journal podcast: WSJ's Alex Leary discusses what we know about the investigation and some of the potential consequences of the search. (Listen)

A House committee can obtain Mr. Trump’s tax returns from the IRS, an appeals court said.

The decision gives congressional Democrats a win in a long-running court fight that could still go before the Supreme Court, Jan Wolfe reports. The ruling could lead to Mr. Trump’s financial data being publicly revealed ahead of the 2024 presidential election. He refused to disclose his returns during his 2016 campaign, breaking decades of tradition by candidates.

A Trump-backed businessman won Wisconsin's Republican gubernatorial primary.

Tim Michels, co-owner of the state’s largest construction company, won the right to take on Democratic Gov. Tony Evers in November’s election, a race that’s expected to be one of the nation’s most hotly contested (▶️Video​), report John McCormick and Chad Day. Voters in Minnesota, Connecticut and Vermont also picked party candidates for federal and state offices as the nomination season nears completion.

$9.7 Billion

Projected total of political advertising spending during the current two-year election cycle, according to AdImpact, compared with about $4 billion in the 2018 cycle and about $9 billion in the 2020 cycle

In other politics news...

  • Biden Administration to End Trump-Era ‘Remain in Mexico’ Policy After Court Clears Last Hurdle (Read)
  • Stock-Buyback Tax Helps Offset Cost of Changes to Inflation Reduction Act (Read)
  • ▶️Video​: Chips Act Will Create More Than One Million Jobs, Biden Says at Signing
  • FDA Adopts Policy to Stretch Monkeypox Vaccine Supplies (Read) (▶️Video​)
 

Economy

THE WALL STREET JOURNAL

Inflation is expected to have remained close to a four-decade high last month.

Economists estimate price increases moderated as gasoline and food costs changes eased, with the CPI expected to have risen 8.7% in July from the year-earlier month, down from 9.1% in June, reports Gwynn Guilford. June marked the fastest pace of inflation since November 1981.

In other economics news...

  • U.S. Productivity Falls for Second Straight Quarter (Read)
  • Inflation Reduction Act’s $27 Billion in Green Funds Could Spur Private Investment (Read)
 

World

▶️Video​: Blasts on the Crimean peninsula took place shortly after 3 p.m. and could be heard around the area for about an hour, eyewitnesses told Russian state media. PHOTO: REUTERS

Explosions at a Russian air force base on Crimea triggered an evacuation of local residents.

The Russian Defense Ministry said that the explosions, which came as Ukraine presses on with a counteroffensive it says it aimed at liberating the south of the country from Russian control, were caused by exploding air-force ammunition and there was no shelling of any kind aimed at the base, report Bojan Pancevski and Brett Forrest. Ukrainian officials welcomed the blasts as a symbolic blow to Russia’s grip on the area but stopped short of claiming responsibility.

  • Inside the Russian-Occupied Ukrainian City Living Under Threat of Nuclear Disaster (Read)
  • Russia Stops Oil Flowing Through Pipeline to Central, Eastern Europe (Read)

In other world news...

  • Taiwan Starts Two-Day Defensive Drills as Tensions With China Remain High (Read)
  • Pelosi’s Taiwan Visit Threatens China-Australia Reset (Read)
  • War Game Finds U.S., Taiwan Can Defend Against a Chinese Invasion (Read)
  • Former Twitter Employee Convicted of Spying for Saudi Arabia (Read)
 

Legal News

A Mississippi grand jury declined to indict a white woman who accused Emmet Till in a chain of events that led to his 1955 killing.

In June, an arrest warrant from 1955 charging Carolyn Bryant Donham with Till’s kidnapping was unearthed in a courthouse basement in Greenwood, Miss., reports Talal Ansari. The discovery led his family to press for fresh action in the decadeslong case.

In other legal news...

  • Suspect Detained in Killings of Muslim Men in New Mexico (Read)
 

What We're Reading

  • Rep. Liz Cheney's (R., Wyo.) Republican allies in her home state are few, but they remain loyal as support for Donald Trump, whom she has criticized, continues to grow. (National Journal)
  • U.S. corporations will pay nearly $296 billion more in federal taxes over the next decade, and middle-income households will see some tax cuts under the tax-and-climate bill, according to an analysis released Tuesday by the Congressional Joint Committee on Taxation. (Bloomberg)
  • Much of Russia's intellectual elite has fled the country, and it isn't certain these people will ever return home. (The Economist)
 

About Us

This newsletter is a production of the WSJ Washington bureau. Send feedback to capitaljournal@wsj.com. You can follow politics coverage on our Politics page and at @wsjpolitics on Twitter.

 
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