May 24, 2018

Pompeo: North Korea ignored U.S. requests on summit prep

Photo: Chip Somodevilla/Getty Images

Secretary of State Mike Pompeo told the Senate Foreign Relations Committee that President Trump canceled the North Korea summit in part because North Korea wasn’t responding to inquiries about planning the details of the summit, and that he helped draft Trump's letter canceling the summit.

What Pompeo said: “Over the past many days, we have endeavored to do what Chairman Kim and I had agreed, which was to put teams, preparation teams together to begin to work to prepare for the summit and we have received no response to our inquiries from them.” He also raised the possibility of new sanctions against Pyongyang.

Other highlights from his testimony

North Korea:

  • Behind the scenes: Pompeo wouldn’t say whether the U.S. gave advance notice to the South Koreans that Trump would be concealing the Kim summit. Moon Jae-in’s office appeared to be caught off-guard.
  • On China: Pompeo said he’d seen no evidence that China had eased up its sanctions on North Korea.
  • On the prospects of talks: “The American team is full prepared. I think we’re rocking. I think we’re ready. I think we’re prepared for this meeting."

Iran:

  • Pompeo said the Trump administration is not looking for regime change in Iran.

Go deeper

Scoop: Top NSC official reassigned to Energy Department amid "Anonymous" fallout

Photo: Mark Wilson/Getty Images

Deputy national security adviser Victoria Coates will be reassigned as a senior adviser to Energy Secretary Dan Brouillette, the National Security Council said Thursday — and a senior White House official said that the administration "rejects" the rumors that she is "Anonymous."

Why it matters: Coates has battled claims that she is the still-unknown Trump administration official that penned a New York Times op-ed and book critical of President Trump.

The Fed may be setting the table for 2020 rate cuts

Illustration: Sarah Grillo/Axios

The Fed looks to be laying the groundwork to lower U.S. interest rates this year, just as they did in April 2019 before cutting rates in July, September and October.

Why it matters: A Fed rate cut makes taking on debt more attractive for U.S. consumers and businesses, helping to juice the economy, but also puts the central bank in a weaker position to fight off a potential recession.

Morgan Stanley to buy E*Trade in a $13 billion deal

Photo: Rafael Henrique/SOPA Images/LightRocket via Getty Images

Morgan Stanley is planning to buy E*Trade Financial Corp. in a $13 billion all-stock deal, the Wall Street Journal reports, with plans to acquire the company known for helping everyday Americans manage their money.

Why it matters: The deal, which would be the largest by a major American bank since the financial crisis, signals Morgan Stanley‘s desire to bulk up in wealth management.