Axios

President Trump canceled the trip by his envoys Steve Witkoff and Jared Kushner to Islamabad due to the Iranian position in peace negotiations, he told Axios.

Why it matters: The envoys had been expected to meet with Iranian Foreign Minister Abbas Araghchi, in a trip designed to break a diplomatic stalemate and build momentum for a deal.

The Trump administration moved faster than anyone expected to build a system to repay businesses billions of dollars in tariffs. Now, the president is warning companies not to use it.

Why it matters: Businesses face an especially tricky quandary: On the one hand, consumers and some lawmakers are calling on them to pass down refunds to their customers. On the other, there's now political pressure not to seek refunds at all.

President Trump is governing like a man who will never face voters again, mortgaging his party's future on promises he won't be around to keep.

Why it matters: Trump's approval has plunged to a second-term low. His signature bets — tariffs, the war in Iran, redistricting — are curdling into long-term liabilities the GOP could carry long past November.

America is becoming more multiracial, but its data systems are still thinking in black and white.

Why it matters: Outdated measurement systems are shaping how elections are analyzed, health risks are tracked and civil rights laws are enforced.

Israel has launched a multimillion-dollar campaign — spearheaded by a former top lieutenant of President Trump — to reshape how AI platforms portray the nation.

Why it matters: Platforms like ChatGPT, Claude and Gemini are increasingly central to shaping perceptions — and countries, corporations and other powerful interests are spending big to influence them.

As Americans feel increasingly pinched in their pocketbooks, local governments are getting imaginative to help residents.

Why it matters: As President Trump slashes social safety net funding, cities are absorbing more of the burden to address affordability.

The Department of Justice said Friday it will drop a criminal probe into Federal Reserve chair Jerome Powell, a sharp pivot in an unprecedented investigation into the nation's top central banker.

Why it matters: It opens the path for President Trump's pick to lead the Fed, Kevin Warsh, to be confirmed to the post after a standoff with Sen. Thom Tillis (R-N.C.), who blocked confirmation until the investigation was closed.

U.S. envoys Steve Witkoff and Jared Kushner are expected to travel to Pakistan on Saturday for negotiations with Iranian Foreign Minister Abbas Araghchi, the White House said.

• Iranian state media denied that any meeting had been scheduled.

Why it matters: While President Trump extended the ceasefire with Iran, the diplomatic efforts haven't made any progress in recent days. The planned trip is an effort to break the stalemate and build momentum for a deal before Trump goes back to exploring military options.

The Food and Drug Administration fulfilled a key part of President Trump's recent federal green light on psychedelics research on Friday by granting expedited review for three companies studying psychedelic treatment for mental conditions.

The big picture: A significant challenge to combating mental health issues is resistance to treatment — a hurdle that research suggests psychedelic therapy could help patients clear.

The best way business leaders can receive help from President Trump is to "just tell him the truth," former White House deputy chief of staff Taylor Budowich told Axios co-founder Mike Allen on Friday.

Why it matters: Chief of staff Susie Wiles' former aide has spent half a decade in Trump's inner circle, giving Budowich a close view of decision-making inside the Oval Office.