Stocks climbed as investors remained unfazed by ongoing debates over tariffs and interest rate cuts. Meanwhile, Alphabet struggled due to concerns over its cloud revenue, despite AI advancements.
Federal Workers Resist Resignation Offers
Most federal employees are choosing to stay put despite buyout incentives. Today marks the final day for ~2.3 million government workers to accept voluntary resignation deals from the Trump administration, yet participation has been minimal.
The US Office of Personnel Management (OPM) sent out an email titled “Fork in the Road” last week—borrowing a phrase from Elon Musk’s 2022 Twitter layoffs notice—offering federal employees paid administrative leave and extended benefits if they resigned by today. The deal was later expanded to include workers at intelligence agencies like the CIA and NSA as part of broader workforce reductions.
So far, only 20,000 employees—less than 1% of the federal workforce—have taken the offer. The administration aimed for a 5–10% reduction but anticipates a last-minute surge in resignations.
Legal Challenges to the Buyout
Three unions representing over 800,000 federal workers filed lawsuits to delay the deadline by at least 60 days, arguing that the administration failed to provide sufficient justification for the offer and left key details unclear. The administration maintains that the offer is lawful, but:
- It may violate regulations limiting federal administrative leave to 10 days per employee.
- It raises concerns over unauthorized spending beyond what Congress has approved. Federal agencies are not guaranteed funding past March 14, when the next budget deadline arrives.
Big Picture: The buyout aligns with Trump’s push to cut government costs, with support from Musk’s DOGE team. Notably, the CIA provided an unclassified report on its hiring records, raising concerns about security breaches involving Musk’s engineers.
Key Global Events
- World Leaders Reject Trump’s Gaza Plan: Trump’s proposal to transform Gaza into a tourist hub met unanimous opposition from China, Russia, the UK, and key Middle Eastern nations. Critics claim the plan, announced alongside Israeli Prime Minister Netanyahu, violates international law.
- Transgender Sports Ban: Trump signed an executive order barring trans women from competing in women’s sports, citing Title IX. The move, a key part of his 2024 campaign, has reignited debates over fairness in athletics.
- USPS Briefly Suspends Packages from China and Hong Kong: The Postal Service initially halted shipments from both regions due to new trade restrictions but quickly reversed course following backlash. The exemption closure is expected to impact platforms like Temu and Shein, which rely on duty-free shipments.
Top Stories
- Tesla Sales Decline: Tesla’s sales plummeted in Germany, mirroring losses in other European markets as CEO Elon Musk increasingly shifts focus to global politics.
- West Point Ends DEI Programs: The military academy is disbanding clubs for women and minority groups following Trump’s order limiting diversity initiatives.
- Baltimore Bridge Replacement Unveiled: Maryland Gov. Wes Moore released blueprints for the new Francis Scott Key Bridge, set to replace the structure destroyed last year in a ship collision.
- Nissan-Honda Merger Talks Stall: Nissan rejected Honda’s proposed merger terms, though discussions are still ongoing.
