
Trump flails as Epstein storm rages around his government
Donald Trump very rarely loses control of his own story. But the Jeffrey Epstein saga is beyond his powers to quell.
It's a new twist for the president, being at odds with the loudest and most conspiratorial faction of his MAGA movement.
For once, he's becoming the victim of an out-of-control conspiracy, not the initiator of one. He looks like the insider covering up, not the ultimate outsider and deep-state destroyer.
Some of MAGA's most visible personalities are speaking up. Georgia Rep. Marjorie Taylor Greene warned Monday of 'significant' reverberations in the movement over what some Trump supporters see as a cover-up. 'It's just a red line that it crosses for many people,' she told CNN's Manu Raju.
Tensions boiling between Attorney General Pam Bondi, FBI Director Kash Patel and Patel's deputy, Dan Bongino, are rekindling memories of the chaos and dysfunction that scarred Trump's first term but have been less obvious in his more prolific second presidency.
analysis 4 big questions about Trump and Epstein
If anyone ought to know that the government can't issue statements of reassurance and make conspiracy theories disappear, it's Trump. He spun some of the most notorious fake intrigues in the history of American politics, from the racist fantasy about President Barack Obama's birthplace to the democracy-corroding tale that he won the 2020 election — which helped vault him back to power in 2024.
But Trump's mastery of the conspiratorial didn't help attempts to squelch the Epstein drama. The Justice Department last week issued a memo insisting that there was no evidence the disgraced financier and convicted sex offender kept a client list or that he was murdered in prison. But as the president could have told Bondi, telling people there is no there there only lights the fire of conspiracy.
That left the president in a worse spot Monday, as CNN reported he was increasingly frustrated about a controversy that has now gone on for almost a week and is overshadowing what the White House sees as a growing list of wins at home and abroad.
The political fallout
One big question is whether Trump risks damage in his own political coalition if he can't quiet the furor over the Justice Department's Epstein memo.
Trump has for a decade been the most dynamic right-wing figure in the country. He's built a brand by tearing things down and crushing Washington rules. But if even he can't end a MAGA media revolt, perhaps he's entering a rocky period with a force that has long sustained him.
Still, it would be unwise to underestimate his power.
Trump transformed the GOP in his populist, nationalist image. Lawmakers who challenge him are often excommunicated. At Trump campaign rallies, the trust and devotion he inspired among his followers was palpable.
MAGA media influencers who criticize him seem to understand that their status in the movement relies on the reflected glory of its megastar: Before Trump's recent strikes on Iran, many of them warned that he risked splitting his base by launching foreign wars — but most fell back into line when the bombs started falling.
'Donald Trump has a very significant hold on the Republican Party, and I think anybody that thinks that this is the end of Donald Trump's hold on the GOP is wrong,' Kristen Soltis Anderson, a Republican strategist and CNN contributor, told Kasie Hunt on 'The Arena' on Monday. Still, Anderson added that this flap could be more problematic for Trump than the ideological battles that he's forced on the GOP because it involves the issue of trust with his supporters and his outsider status.
But in next year's midterm elections, when Trump won't be on the ballot, any falloff in enthusiasm among grassroots Republicans could have an impact.
Steve Bannon, a Trump first-term political adviser who now presents the 'War Room' podcast, argued at the Turning Point USA conference on Friday that it wouldn't take much erosion in the MAGA base to have a dramatic effect. He said that if 10% of the movement was disaffected, the party could lose 40 House seats. That would mean a Democratic majority.
What will Trump do next?
It's worth watching to see whether Trump senses he's under pressure. If so, a president who is an expert at distraction may seek to stage-manage new controversies.
Trump has often returned to the issue embedded in the DNA of the MAGA movement — hardline positions on immigration — to bring the gang back together. So it was not surprising to see border czar Tom Homan and Homeland Security Secretary Kristi Noem talking tough on Sunday news shows. But those MAGA administration favorites still couldn't disguise the rumblings over Epstein, which intensified all weekend.
Those rumblings were initiated in the first place by Bondi hinting earlier this year on Fox News that there could be a big reveal in the case. Trump has made strong show of support for his AG in recent days, including appearing with her at the FIFA Club World Cup Final on Sunday. She is also valuable to him and has transformed her department into a de facto personal legal firm for the president.
Still, if she can't quell the noise from the political base, there will be more whispers in Trump's ear about her performance. The president has soured on his Cabinet picks in such circumstances in the past.
Trump wrote on social media over the weekend that Bondi was 'great' and should be allowed to do her job.
But loyalty usually only works one way in the Trump administration. And one way of getting on the right side of the story would be for the president to distance himself from Bondi.
CNN's White House team reported, meanwhile, that while the president doesn't want to lose Bongino over this issue because it would make his Cabinet look split, some expect the deputy FBI director will not remain in his job long term.
House Speaker Mike Johnson told Raju on Monday that he still had faith in Bondi and that he trusted the president to do the right thing about the Epstein issue. The fact that the Louisiana Republican is prepared to entertain such questions shows the attorney general is under pressure.
The conspiracist-in-chief
True to form, Trump sought to extricate himself from the mess by starting new conspiracy theories blaming Democrats for failing to release the files years ago. This has often worked in the past to bind his coalition together. But it's not working this time.
The president merely opened the way for Democrats to heap scrutiny on his decisions.
'The American people deserve to know the truth, the whole trust and nothing but the truth as it relates to this whole sordid Jeffrey Epstein matter,' House Minority Leader Hakeem Jeffries told reporters Monday as he tried to widen MAGA splits. 'This was a conspiracy theory that Donald Trump, Pam Bondi and these MAGA extremists have been fanning the flames of for the last several years, and now the chickens are coming home to roost.'
Top conservative influencers at the Turning Point conference and on Monday podcasts continued to demand answers about Epstein, where he got his money, who he was linked to and who was covering for him.
All this shows that the Epstein controversy is unlikely to go away quickly.
One reason why is that it's become central to an argument that Trump and his aides promoted for years that the United States is under the control of a 'deep state' of intelligence agencies, billionaire financiers and shady political forces that are orchestrating events behind the scenes.
Trump tapped into this false mythology to build his own power — portraying himself as a victim of CIA and FBI plots and weaponized justice because he was the avatar of the hopes of MAGA followers across the country.
Now it looks like he's siding with such supposedly rotten institutions, not bringing them down.
How the Epstein storm could hurt the country
But this is not just about the president and his movement.
Given his position, and the chaos gripping the Justice Department, there are implications for the country.
The controversy is offering a damning insight into modern politics and the contribution of a fractured media environment to the shattering of the concept of truth.
The refusal of MAGA media personalities to accept that the facts do not support a cover-up around Epstein's alleged client list and his death in prison reflects an extreme version of a powerful trend — the desire of increasing numbers of citizens to choose curated truths that support what they want to believe. Trump has done more than any other politician to promote this.
analysis MAGA media's conspiracy theories put Trump in power — and now they're coming back to bite him
The corrosive nature of Trump's conspiracy-consumed government also threatens to damage the Justice Department and FBI. Vitriol ricocheting through the management suite risks detracting from the core missions of the DOJ and the bureau — which include the fair administration of justice and the protection of Americans against violent crime and terrorism. It also shows that when the purpose of such agencies is tainted by politics — as it has been under Trump — the ramifications can sometimes spin out of control.
And no one in MAGA media is talking about one key issue.
Many of those who voted for Trump in his more-diverse-than-usual Republican coalition last year weren't hardcore MAGA conspiracists. They were Americans frustrated with the cost-of-living crisis: the price of groceries, rent, child care and education.
How is this political saga over a wild conspiracy about a dead and accused sex offender going over with them?
It seems unlikely it will be top of mind when they show up at the polls next November to decide the fate of Republican congressional majorities.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
Trump announces trade agreement with Indonesia, including 19% tariff
President Donald Trump said Tuesday the United States has reached a trade agreement with Indonesia after speaking with the country's President Prabowo Subianto. Hours after announcing the agreement on Truth Social, Trump told reporters that it calls for Indonesia to not charge any tariffs on American exports, while the US will impose a 19% tariff on Indonesian exports. In a subsequent post on Truth Social, he said the agreement was 'finalized.' However, the Indonesian government had yet to confirm the details, saying on Tuesday that a joint announcement was in the works. 'We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon,' Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message. Trump also said Indonesia committed to buying '$15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's.' Before departing the White House to speak at a summit in Pittsburgh, the president said Indonesia is 'known for high-quality copper, which we'll be using.' That may mean that copper from the country could face lower tariffs, or no tariffs, if Trump proceeds with his threat to levy a 50% tax across all copper imports on August 1. While Indonesia shipped $20 million worth of copper to the US last year, according to US Commerce Department data, that's far behind top suppliers Chile and Canada, which sent $6 billion and $4 billion worth of the metal to the US last year. 'No tariffs there; they pay tariffs here. Switching the asymmetry our way,' US Commerce Secretary Howard Lutnick said in a CNBC interview on Tuesday. Trump said India is 'working along the same line' with regard to securing a trade agreement. In April, Trump briefly imposed a 32% tariff on goods from the country before pausing so-called 'reciprocal' tariffs. Countries that were due to face those tariffs have been charged a minimum 10% tariff for the past three months. That's due to end on August 1. 'Great deal, for everybody, just made with Indonesia. I dealt directly with with their highly respected President,' Trump wrote on his social media platform Tuesday morning. 'DETAILS TO FOLLOW!!!' This marks Trump's fourth trade agreement announcement in three months. He had previously promised dozens of deals with US trading partners over that time frame, but that has proven tough to reach. One of the four agreements he previously announced was with Vietnam earlier this month, similarly posting on Truth Social. But the administration has yet to announce any more information on that agreement. Trump's volatile trade policy has paralyzed many businesses. Some fear that new orders they place for products manufactured overseas could be tariffed at dramatically higher rates given Trump can — at the flick of a switch — change rates charged on a country's exports. Trump has said companies can avoid such headaches by moving production to the United States. But it's not so simple in practice: Businesses may not only encounter difficulty finding the right workers, but it could take years — and many millions of dollars — before manufacturing facilities are up and running. Then, once production is moved to the US, costs could increase, leading to higher prices for American consumers. Representatives from the Indonesian government did not immediately respond to CNN's request for comment. Indonesia is America's 23rd top trading partner, US Commerce Department data from last year shows. The United States imported $28 billion worth of merchandise from there last year. Apparel and footwear were the top two goods Americans bought. Meanwhile, the US exported $10 billion worth of goods there last year. Oilseeds and grain as well as oil and gas were the top two exports. CNN's Bryan Mena contributed to this article. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20 minutes ago
- Yahoo
Stephen Colbert Riffs On Paramount's 'Big Fat Bribe' To Settle Donald Trump's CBS '60 Minutes' Lawsuit
Stephen Colbert riffed Paramount Global's $16 million settlement of Donald Trump's lawsuit, calling the payment a 'big fat bribe' and joking about the prospects that new owner Skydance will try pressure him to back off from humor directed at the president. In a clip from Monday's The Late Show posted on social media, Colbert joked in his monologue, 'As someone who has always been a proud employee of this network, I am offended, and I don't know if anything will ever repair my trust in this company. But just taking a stab at it, I'd say $16 million would help.' More from Deadline Emmy Nominations: TV Academy To Unveil Late-Night & Reality Categories Early Mike Fleming Jr: Hemdale Back From Dead With Provocative 'Torn'; Donald Trump's Beak-Wetting Right Out Of 'The Godfather Part II' Louis C.K., Stephen Colbert, Amy Sedaris, Pete Holmes & Many More Set For 2025 New York Comedy Festival - View The Lineup Colbert was off when Paramount and Trump's team announced the settlement earlier this month. Trump had sued CBS over the way that 60 Minutes edited an interview with Kamala Harris in the lead up to the 2024 election. Many legal experts saw the lawsuit as meritless, and so did the Paramount-CBS' legal team, but the company needs Trump administration approval for its merger with Skydance. Colbert also said in his monologue, 'This settlement is for a nuisance lawsuit Trump filed, claiming that 60 Minutes deceptively edited their interview with then-candidate Kamala Harris last fall. Paramount knows they could have easily fought it because in their own words, the lawsuit was 'completely without merit.' And keep in mind, Paramount produced Transformers: Rise of the Beast. They know completely without merit.' Colbert added, 'Now, unlike the payoffs from ABC and Twitter, Paramount's settlement did not include an apology. That's good. Instead, the corporation released a statement where they said, 'You may take our money, but you will never take our dignity. You may, however, purchase our dignity for the low, low price of $16 million. We need the cash.'' 'Now, I believe this kind of complicated financial settlement with a sitting government official has a technical name in legal circles: It's big fat bribe, because this all comes as Paramount's owners are trying to get the Trump administration to approve the sale of our network to a new owner, Skydance.' Colbert also showed a headline from Puck. 'Some of the TV typers out there are blogging that once Skydance gets CBS, the new owner's desire to please Trump could put pressure on late night host and frequent Trump critic Stephen Colbert.' Colbert then pointed to his new mustache. 'But how are they going to put pressure on Stephen Colbert if they can't find him?' In announcing the settlement, Paramount said the 'lawsuit is completely separate from, and unrelated to, the Skydance transaction and the FCC approval process.' The transaction is still pending before the FCC. Some lawmakers, like Sen. Elizabeth Warren (D-MA) have called for an investigation to see if anti-bribery laws were broken. Best of Deadline Everything We Know About Amazon's 'Verity' Movie So Far 'Street Fighter' Cast: Who's Who In The Live-Action Arcade Film Adaption 2025-26 Awards Season Calendar: Dates For Emmys, Oscars, Grammys & More
Yahoo
23 minutes ago
- Yahoo
Housing market watch: Would taking Freddie Mac and Fannie Mae public drive up mortgage rates in 2026?
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. 5 work-from-home purchases worth splurging for This 'Iron Dome' for mosquitoes shoots down bugs with lasers Managers think employees should take a break from work—but they don't promote the ones who do Earlier this month, President Donald Trump signed his party's reconciliation/tax overhaul bill. With reconciliation/taxes now in the rearview mirror, Freddie Mac and Fannie Mae conservatorship could move up the docket. After all, back in May, Treasury Secretary Scott Bessent said that privatizing Fannie Mae (the Federal National Mortgage Association, or FNMA) and Freddie Mac (the Federal Home Loan Mortgage Corporation, or FHLMC) would be on the agenda after taxes and trade deals. 'It [privatization of Fannie Mae and Freddie Mac] is a goal for this administration,' Bessent said in May. 'Again, we're doing peace deals, tax deals, and trade deals. As we land some of those deals, then we will focus on that [privatization of Fannie Mae and Freddie Mac]. But what I can tell you is that we are doing a great deal of studying at Treasury, because the one requirement for this privatization is that they are privatized in such a way that mortgage spreads do not widen.' One reason housing stakeholders should pay attention to the fate of Freddie Mac and Fannie Mae is the long-standing concern that ending conservatorship could put upward pressure on mortgage rates. See, once released, Fannie Mae and Freddie Mac could need to hold more capital to absorb losses. To build and maintain that capital, they may need to increase guarantee fees charged to lenders. In addition, upon release, unless there's an 'explicit guarantee' or backstop from Congress, investors may demand higher returns to account for increased risk. Those concerns are real enough that this spring, both Bessent and Federal Housing Finance Agency (FHFA) Director Bill Pulte said that Freddie Mac and Fannie Mae conservatorship changes wouldn't be made if doing so put upward pressure on mortgage rates/mortgage spreads. 'The priority for a Fannie and Freddie release, the most important metric that I'm looking at is any study or hint that mortgage rates would go up. Anything that is done around a safe and sound release [of Fannie Mae and Freddie Mac] is going to hinge on the effect of long-term mortgage rates,' Bessent said in February. While Bessent has suggested they're looking into 'privatization,' Pulte has indicated that it's not really the 'privatization' of Fannie Mae and Freddie Mac, but rather it's taking them 'public.' To be honest, I'm not entirely sure what he's getting at. Maybe keeping them in conservatorship but selling off more shares? I'm not sure. 'At Fannie Mae, we have $4.3 trillion on our balance sheet. At Freddie Mac, we have over $3 trillion,' Pulte said in May. 'I would point you to his [Trump's May] tweet. He explicitly says he wants to take them [Fannie Mae and Freddie Mac] public—he did not say he wants to privatize them or many of the other things that are out there. I think these businesses have a ton of value. These businesses one day could be worth trillions of dollars. We'll see what the president ultimately decides.' While the U.S. Treasury owns the majority of Fannie Mae and Freddie Mac profits through senior preferred stock agreements, the common and preferred shares that existed before conservatorship were never fully wiped out. Once Wall Street realized Trump had won the 2024 election, the stocks of Fannie Mae and Freddie Mac spiked as the market priced in higher odds that the second Trump administration would attempt to end the current status quo. Looking at their share prices today, it's clear that either Wall Street or retail investors (or both) think something new is still on the horizon for Freddie Mac and Fannie Mae. As noted above, Pulte made comments in May that seemed to suggest that what they're considering could just be selling off/releasing some of the Freddie Mac and Fannie Mae stocks currently held by the government, and maybe not a full release. To better understand what the Trump administration is planning to do with Freddie Mac and Fannie Mae—and how their concerns that a release could put upward pressure on mortgage rates—we reached out to Pulte to see if he'd speak at ResiDay 2025 on Friday, November 7. He said yes. By the time ResiDay 2025 rolls around, we may already have a much clearer picture of what the administration is planning to do—or not do—with Freddie Mac and Fannie Mae. Even then, there will be several other timely topics we'd like to ask Pulte about. That could include how they plan to implement any Freddie Mac/Fannie Mae changes, Fannie Mae and Freddie Mac accepting VantageScore 4.0 for mortgage underwriting, and his public attacks on Fed Chair Jerome Powell. Here's a quick Q&A if you're looking for a refresher on Freddie Mac and Fannie Mae. Fannie Mae and Freddie Mac were placed into conservatorship by the FHFA in September 2008 after suffering massive losses during the housing crash, threatening the stability of the U.S. financial system. The U.S. Treasury provided a bailout to keep them afloat, and they have remained under government control ever since—despite returning to profitability. Freddie Mac and Fannie Mae are government-backed enterprises that help keep the U.S. mortgage market running smoothly. They don't issue home loans themselves—instead, they buy mortgages from lenders, bundle them into mortgage-backed securities, and guarantee those securities against default. This process creates a steady flow of capital, helping lenders offer more mortgages and keeping mortgage rates lower. Because Freddie Mac and Fannie Mae set strict standards for the loans they buy, Freddie and Fannie shape how lenders underwrite mortgages. Their policies also influence who gets access to credit, especially first-time and lower-income buyers. During downturns, Freddie Mac and Fannie Mae, in theory, help stabilize the housing market by continuing to support lending. While Fannie and Freddie are not officially backed by the full faith and credit of the U.S. government, they are in federal conservatorship and widely perceived as having 'implicit' government support. IF Freddie Mac and Fannie Mae were fully released without an 'implicit' or 'explicit' government guarantee, Moody's chief economist Mark Zandi tells ResiClub he thinks it could push up mortgage rates by 60 basis points (bps) to 90 bps. So, for instance, a 60 bps increase would push the average 30-year fixed mortgage rate today from 6.82% to 7.42%. 'Release of the GSEs [government-sponsored enterprises] as SIFIs [systemically important financial institutions] with no government guarantee, explicit or implicit—this would add an estimated 60 to 90 basis points to 30-year fixed mortgage rates, compared to the current status quo for the typical borrower through the business cycle,' Zandi told ResiClub earlier this year. 'Without a government guarantee, the Federal Reserve would not be able to buy the GSEs' MBS [mortgage-backed security], and there is the risk that the rating agencies would downgrade the GSEs' debt and securities. The GSEs' share of the mortgage market would significantly decline, and it would increase for private lenders and the FHA, resulting in greater taxpayer exposure, as taxpayers bear all the risk in FHA loans.' IF Freddie Mac and Fannie Mae are released with an 'implicit' or 'explicit' government guarantee, Zandi thinks the mortgage rate impact would be much smaller. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data