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Issue won't fade away
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This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, senior editor Joe Sobczyk looks at how the Jeffrey Epstein case is continuing to consume Washington’s attention. Sign up here and follow us at @bpolitics. Email our editors here.

High Interest

The ghost of Jeffrey Epstein continues to haunt the corridors of Washington.

While President Donald Trump dismissed the intense interest in the government’s files on the late, disgraced financier and convicted sex offender as “sort of a witch hunt,” the topic just won’t fade away.

Deputy Attorney General Todd Blanche announced today he planned to talk to Ghislaine Maxwell, Epstein’s longtime associate who’s serving prison time after being convicted of child sex trafficking and other charges in 2021.

In a statement on X, Blanche said he was acting for fulfill Trump’s directive “to release all credible evidence” in the Epstein case, Bloomberg’s Chris Strohm, Cam Kettles and Billy House report.

Trump told reporters at the White House that he didn’t know anything about the outreach to Maxwell, but said it “sounds appropriate to do.”

Trump Photographer: Bloomberg/Bloomberg

In the House, meanwhile, the Oversight Committee voted unanimously to subpoena Maxwell. 

Speaker Mike Johnson sent lawmakers home for their summer recess a day early to sidestep Republican divisions on whether the House should demand release of the Epstein files, Bloomberg Government’s Maeve Sheehey reports. 

Democrats were happy to join a group of Republicans to force the issue. But Johnson — who promised “maximum transparency — said he wanted to give the Trump administration time to release any Epstein records on their own.

Trump has tried to redirect the focus to other subjects. Today, he ran through his long standing list of unresolved grievances about the former President’s Barack Obama and Joe Biden, Hillary Clinton and the 2016 and 2020 that he said should be getting attention.

Still, there’s a sizable chunk of president’s base that has been primed to believe that there must be some damaging information about political and financial elites in the Epstein files that the government has been covering up. That was evident in the angry reaction when Trump’s Justice Department announced there wasn’t anything more to see.

Republican Representative Thomas Massie, who has been leading the charge for a vote on releasing the files, said the issue isn’t going to fade away and “will follow each individual Republican through the midterms.” — Joe Sobczyk

Don’t Miss

Treasury Secretary Scott Bessent offered support for Jerome Powell amid repeated attacks from Trump and other administration officials, saying he sees no reason for the Federal Reserve chair to step down.

Bessent also said he will meet his Chinese counterparts in Stockholm next week for their third round of trade talks aimed at extending a tariff truce and widening the discussions.

Trump said the US reached an agreement with the Philippines that will set a 19% tariff on the country’s exports, the latest trade framework announced ahead of an Aug. 1 deadline.

The Trump administration expects that Indonesia’s decision to bring down trade barriers will result in at least $50 billion in additional market access for US goods. 

Who’s paying for Trump’s tariffs? So far, American businesses and consumers.

The US ambassador to NATO said China needed to be “called out for their subsidizing” of Russia’s war in Ukraine as the Trump administration ratchets up its pressure on Moscow to agree to a peace deal.

A federal appeals court will allow Trump to continue to block news outlets from covering him in “restricted” spaces such as the Oval Office and Air Force One based on their editorial decisions.

Federal trial judges in New Jersey appointed First Assistant US Attorney Desiree Grace as interim head of the office, declining to extend the tenure of temporary chief and one-time Trump defense lawyer Alina Habba.

The federal government has awarded a $1.3 billion contract to build and operate a sprawling tent camp at Fort Bliss, an Army base in Texas, to serve as an immigrant detention center.

The Navy raised the estimated price tag for the first of its next-generation nuclear-missile submarines by $1.7 billion, another black eye for a program that’s the centerpiece of the service’s modernization plans.

Trump plans to withdraw the US from the United Nations body that deals with education, science and culture for a second time, citing an ideological agenda that it says doesn’t serve American interests.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., host Joe Mathieu interviewed Anne Neuberger, deputy national security adviser for cyber and emerging technology in the Biden administration, about Trump’s planned policy guidelines for artificial intelligence as well as the Microsoft hack.

On the program at 5 p.m., Joe and Tyler Kendall talk with Susan Schwab, who was US trade representative in the George W. Bush administration, about the next round of talks between the US and China and the impact of tariffs on the economy.

On the Big Take podcast, Robert Gates has served as secretary of defense for two presidents and the director of the CIA sits down with host David Gura and shares his perspective on what makes this moment one of “the most perilous” in history. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

The number of women with an advance degree surpassed the number of men in the US workforce with those credentials about a decade ago and the gap has continued to grow, according to data released today by the Bureau of Labor Statistics. In the mid 1990s, men and women were equally likely to hold a bachelor’s degree, but since then woman have outpaced men by a significant margin in college completion. Women ages 25 to 34 now have about a 10 percentage point lead in attaining a bachelor’s degree. Among workers with an advanced degree — which includes a master's, doctoral, and professional degrees such as those in law or medicine — there were a million more women than men last quarter. — Alex Tanzi

What’s Next

Sales of existing homes during June will be reported tomorrow.

New home sales in June will be reported Thursday.

Initial jobless claims for the week ending July 19 will be reported Thursday.

Durable goods orders for June will be released Friday.

Trump is scheduled to travel to Scotland on Friday.

The Fed’s monetary policy committee will meet July 29-30.

Trump’s latest round of tariffs are due to take effect on Aug. 1.

Seen Elsewhere

  • As smoking has declined, the number of lung cancers unrelated to smoking has persisted, leaving researchers scrambling to figure out new strategies for prevention and detection, the New York Times reports.
  • North Korean scammers who get remote jobs at US companies seem to share an obsession with the Minion characters from the animated movie "Despicable Me," the Wall Street Journal reports.
  • Texas lawmakers earlier this year largely ignored recommendations of study they commissioned on helping rural areas prepare for storms and flooding, ProPublica and the Texas Tribune reported.

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