| Donald Trump returns tomorrow to the site of his first political speech after his loss in the 2020 election. At the time, there was much talk about the direction of the Republican Party, in the wake on the Jan. 6, 2021 Capitol riot, and a Democratic sweep of the White House and Congress. That earlier debate is now settled. Trump will speak at the Conservative Political Action Conference outside Washington feeling vindicated after having retained his grip on the party and leading it back to power.  Trump at the Republican Governors Association meeting. Photographer: Shawn Thew/EPA But his keynote appearance on the final day of the conference carries uncertainty about the challenges ahead facing his party. With no clear heir apparent and his most visible adviser, South African-born billionaire Elon Musk, constitutionally ineligible and so far overshadowing Vice President JD Vance, Trump has taken to musing about another term despite the Constitution limiting presidents to two. His longtime ally Steve Bannon led a chant at CPAC earlier in the week, calling for a third Trump term. An administration official said the statements from Trump about are more a way provoke his opponents and the news media rather than a serious consideration. Privately, the president muses about the reaction it draws, according to the official, who requested anonymity to describe closed-door conversations. It's a line that draws cheers — the CPAC crowd applauded during Bannon's speech — but it underscores the fragility of the GOP's current majority in Washington with the 2026 midterms already coming into focus. It also speaks to the frenzied pace with which Trump has attacked his second term racing to make headway on issues like inflation and border security that voters elected him to address. A significant portion of his campaign promises still hinge on Republican lawmakers passing key legislation, including an extension of his 2017 tax cuts and revamped immigration laws. Whether polarized and fickle voters deem him successful could determine the future of the party. Trump appears not to be worried. “I think we’re going to do fantastically,” he told the Republican governors, speaking about the congressional elections next year. So far, “we’re very popular.” Other developments this week: - DOGE chronicles: Elon Musk has become the subject of lawsuits and Democratic attacks for his role overseeing the cost-cutting initiative being carried out by the new Department of Government Efficiency. But he doesn’t actually work for DOGE, according to the White House. Musk's exact authority carries significant practical and legal implications, my colleagues Gregory Korte and Zoe Tillman report, since his opponents argue he should be Senate-confirmed for his influence. The White House says he has "no greater authority than other" senior advisers to the president.
- Hometown rule: Trump has been wading into New York politics lately, mostly recent with a move to block the city’s congestion pricing program, which imposes tolls on drivers entering some of Manhattan’s busiest streets Bloomberg’s Zach Williams and Michelle Kaske write. That sets up a legal showdown over the tolling initiative.
- Gauging interest: With the job market still strong and inflation stubborn, minutes from the Federal Reserve Open Market Committee’s January meeting show officials expressed readiness to hold interest rates steady, Bloomberg’s Amara Omeokwe reported. The record underscored the cautious approach Fed policymakers are taking after lowering interest rates by a percentage point in the closing months of 2024.
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