The May jobs report looks fine on the surface, but underneath there are signs of weakening in the labor market.

Why it matters: The good news is that employers kept hiring at a healthy rate in May. But a few oddities in the report signal less momentum in the job market.

What they're saying: "There are now clear trends in the data, not just vague signs, that even if the train is chugging forward, more and more people are getting left behind at the station," Cory Stahle, an economist at job search site Indeed, wrote in a note.

• "This isn't a bad report, per se, but there are clear signs of erosion just below the surface that may not be apparent just by looking only at the headline numbers," Stahle said.

By the numbers: Payroll employment rose by 139,000 in May, roughly in line with what forecasters had anticipated. But the Labor Department revised down job gains in March and April by a combined 95,000 jobs.

• Job growth has averaged 124,000 a month in 2025, a downshift from 168,000 in 2024.
• Meanwhile, the unemployment rate was steady at 4.2% — but that masked a steep drop in the number of Americans in the labor force.
• The share of adults who were employed fell 0.3 percentage points to 59.7%, the lowest in more than three years. It was due to a whopping 625,000 fewer people in the labor force — neither working nor looking for work.

The intrigue: The bulk of job creation continued to be concentrated in what Treasury Secretary Scott Bessent has called "government-adjacent" fields, including health care.

• That sector added 62,000 jobs last month, above the average monthly gain of 44,000 jobs over the prior 12 months.
• "The month's modest job gains were concentrated in non-cyclical sectors like healthcare," Comerica chief economist Bill Adams wrote in a note.
• "Job gains in other cyclical private industries were anemic, reflecting the drag from policy uncertainty."

Of note: The federal government sector, which has been hit by DOGE-related layoffs, lost 22,000 jobs in May alone. It has shed 55,000 workers since January. (Local government employment rose by 21,000.)

State of play: The reported size of the labor force can be volatile month-to-month just due to sampling error, but the drop in May was unusually large.

• It may have fallen because of potential workers becoming discouraged about job prospects, or it could be attributable to immigration cuts reducing the supply of labor, notes Nationwide chief economist Kathy Bostjancic.

No rate cuts soon

The new numbers are the worst of all worlds for those hoping for Fed interest rate cuts — including the guy in the Oval Office.

State of play: The Fed is on high alert for any meaningful deterioration in the labor market, which could trigger interest rate cuts to try to fulfill its mandate for maximum employment.

• This report didn't provide that — it's hard to square a stable unemployment rate and solid payroll growth with the kind of falloff in the job market that would bring in the rate-cutting cavalry, no matter what the beneath-the-surface details show.
• Meanwhile, average hourly earnings rose 0.4% in May, an elevated level that suggests some residual inflation pressure remains in the job market.
• The policy-sensitive two-year Treasury yield was up a whopping 0.09 percentage points this morning on the news, reflecting expectations that rate cuts are looking more distant.

Between the lines: The Fed's policy committee meets later this month and is all but certain to leave rates unchanged, consistent with its wait-and-see mode for the impact of the trade war on the economy.

• The meeting after that is in late July, but that means there will only be one more month of jobs data by then. A rate cut then also looks improbable, barring a complete collapse in the data in the weeks ahead.
• It's far more plausible that by September there will be enough evidence of a downshift in the job market and economic activity more broadly.

Yes, but: That's not what President Trump wants to hear. "If 'Too Late' at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due," Trump posted on Truth Social this morning. "Borrowing costs should be MUCH LOWER!!!"

• "Go for a full point, Rocket Fuel!" he later added.

Reality check: The Fed isn't going to cut interest rates a full percentage point, or anything close to it, unless or until, there is more decisive evidence that the job market is losing steam.

Rep. Mary Miller (R-Ill.) posted — then quickly deleted — that a Sikh should have "never been allowed" to lead the House of Representatives' daily prayer on Friday after initially incorrectly calling the man a Muslim.

Why it matters: This is not the first time Miller has fallen into hot water for inflammatory remarks. Shortly before she took office in 2021, she made headlines for saying "Hitler was right about one thing."

• After Roe v. Wade was overturned in 2022, Miller called the decision a "historic victory for white life," which her office later said was based on a misreading of her prepared remarks.
• A Miller spokesperson did not immediately respond to a request for comment.

What happened: Giani Singh, a Sikh Granthi from southern New Jersey, delivered the House's morning prayer on Friday.

• Miller responded later in the morning by incorrectly identifying Singh as a Muslim, saying it was "deeply troubling that a Muslim was allowed to lead prayer in the House of Representatives this morning."
• "This should have never been allowed to happen. America was founded as a Christian nation, and I believe our government should reflect that truth, not drift further from it. May God have mercy," she added.
• Miller quickly edited her post to change "Muslim" to "Sikh," before deleting it altogether minutes later.

What they're saying: "I often say that I serve in Congress with some of the greatest minds of the 18th century. With Rep. Miller I may need to take it back a few more centuries," Rep. Jared Huffman (D-Calif.) said in a post on X.

• Said Rep. Grace Meng (D-N.Y.) in a post on X: "What's deeply disturbing is the blatant ignorance and anti-Sikh, anti-Muslim xenophobia coming from my colleague across the aisle."
• "There is no place in our country, and especially the Halls of Congress, for this hate and intolerance," she added. "The tweet may have been deleted, but we still have the receipts."

Republicans overwhelmingly said they'd side with President Trump over Elon Musk in the duo's explosive feud, according to Thursday polling.

Why it matters: Republicans' loyalty to Trump remains strong, and the acrimony only adds to Americans' existing dissatisfaction with the former head of DOGE.

By the numbers: More than half of Americans said they wouldn't side with either the president or the wealthiest man in the world, per a YouGov survey of U.S. adults.

• 28% said they would side with Trump, and only 8% said they would side with Musk.

Zoom in: Among Republicans, 71% said they would side with Trump over Musk, while 12% said they would side with neither.

• 80% of Democrats said they would side with neither.

Context: Trump and Musk had a public falling out on Thursday following months of collaboration.

• Musk left the White House in late May after months of influence over the Trump administration and federal spending.
• He initially said he'd continue to be an adviser to the president, but then started bashing the "One Big Beautiful Bill."
• Trump on Thursday said he didn't know if they'd have a "great relationship," prompting bitter backlash from Musk on X.

What we are watching: Musk and Trump have scheduled a phone call on Friday to defuse the tension, according to Politico.

• Musk also appeared to walk back on an earlier threat he made on X to decommission the Dragon spacecraft, which is essential to NASA's operation.

Go deeper: How Trump and Musk went from bromance to bitter dispute

Elon Musk's threat Thursday to decommission SpaceX's Dragon spacecraft would have left NASA reliant on Russian capsules to get its astronauts into space.

Why it matters: Musk's rift with President Trump exposes how reliant NASA has become on a single private sector partner to reach the International Space Station after ending the space shuttle program in 2011.

• Musk eventually walked back the threat Thursday, but it demonstrates how critical SpaceX is to the American space program.

Catch up quick: The feud between the president and world's richest man exploded into public view Thursday after Musk criticized Trump's flagship spending bill.

• Trump subsequently threatened to cut all of Musk's government contracts, and Musk retaliated by threatening to mothball SpaceX's Dragon.
• It's an acrimonious ending to Musk's tenure in the White House.

State of play: The Dragon spacecraft can carry up to seven passengers into orbit, according to the SpaceX website.

• "It is the only spacecraft currently flying that is capable of returning significant amounts of cargo to Earth, and is the first private spacecraft to take humans to the space station," the website said.
• Between 2011 when the space shuttle program ended and 2020 when the Dragon entered service, American astronauts relied on other countries to reach space, particularly Russia.
• The Dragon has completed 51 missions and 46 visits to the ISS, per SpaceX.

Russia's Soyuz capsules are the only other way for crews to reach the space station, per AP.

• Each Soyuz launch carries two Russians and one NASA astronaut. Every SpaceX launch carries one Russian.

Flashback: NASA in 2014 awarded contracts to SpaceX and Boeing to transport crews to the ISS.

• Boeing's Starliner, though, experienced significant setbacks and left astronauts stranded on its first crewed test flight.

Zoom out: While NASA relies on SpaceX for its astronauts, other companies including Northrop Grumman and the United Launch Alliance successfully transport cargo to the ISS and launch satellites.

Go deeper:

• Musk calls for Trump's impeachment
• Trump-Musk feud shows signs of thawing

House Speaker Mike Johnson said Friday on CNBC that he hopes the stunning feud between Elon Musk and President Trump is quickly resolved.

Why it matters: Musk personally targeted Johnson (R-La.) in a series of posts on Thursday. Johnson refers to Musk as a friend, and said he and Musk had a "very friendly conversation" as recently as Monday.

• Johnson said he and Musk can have "policy differences," but it "shouldn't be personal."
• "I don't argue with him about how to build rockets. And I wish he wouldn't argue with me about how to craft legislation and pass it," Johnson said.
• "I respect them both," Johnson said of Trump and Musk.

Editor's note: This is a breaking news story and will be updated.

Shortly after President Trump unexpectedly withdrew Elon Musk's pick to lead NASA last weekend, one name quickly surfaced as a major force behind the surprise decision: top White House aide Sergio Gor.

Why it matters: Trump acknowledged Thursday that canceling Jared Isaacman's NASA nomination had "upset" Musk, who's close to Isaacman. It was a factor, among many, that led to Thursday's shocking falling out between the president and his one-time "First Buddy," the world's richest person.

Musk spent the afternoon flaming Trump on X. It left presidential advisers stunned — and some of them angry at Gor, whose tense relationship with Musk was a backdrop to the controversy.

• Senate Republicans also blamed Gor for helping undermine the NASA nomination to settle a score with Musk, who had been critical of Gor's management of the White House personnel office.
• Gor declined to comment. But one senior White House official called Axios on Gor's behalf to praise his "brilliance, hard work and dedication."

Zoom in: Gor is one of the most influential Trump advisers in the White House, and co-founded Winning Team Publishing with Donald Trump Jr. The imprint publishes books by Trump and his allies, and put much-needed cash in Trump's pocket during his isolation after the Jan. 6 riot at the Capitol.

• Gor, a frequent presence at Mar-a-Lago, has a close relationship with former Marvel executive Ike Perlmutter, one of Trump's closest friends and a major donor.
• Gor was a top fundraising official on Trump's 2020 re-election campaign, and founded a pro-Trump super PAC during the 2024 campaign that spent nearly $72 million.

Zoom out: As the man in charge of vetting political appointees, Gor implemented loyalty tests to make sure new hires support Trump's agenda wholeheartedly — and that they haven't given to Democrats.

• Of all of Trump's picks, Isaacman — a wealthy entrepreneur — stood out for having contributed to Democrats during the last election cycle. Trump cited that Saturday when he withdrew Isaacman's nomination.
• Trump, however, had been made aware of Isaacman's donations months ago and said nothing.
• Now, the nation's space agency won't have a chief confirmed by the Senate for at least nine months, officials say.

Flashback: Musk and Gor had a tense relationship that surfaced in March during a heated Cabinet meeting in which Musk got into an argument with Secretary of State Marco Rubio, The New York Times reported at the time.

• Gor wasn't mentioned in the Times story, a conspicuous absence in the eyes of two senior administration officials who say Gor resented Musk's involvement in personnel matters.
• "Sergio let it be known he didn't like Musk's attitude ... and he didn't like getting called out [by Musk] in front of the Cabinet," said one White House official who attended the meeting.

The intrigue: In a Wednesday discussion on the "All-In Podcast," Isaacman said he believes his fate was linked to Musk's deteriorating standing in the White House and "an influential adviser coming in and saying [to Trump]: 'Look, here's the facts and I think we should kill this guy.'''

• "It's crazy," a Trump adviser involved in the NASA director process said. "Isaacman is eminently qualified. He's a billionaire. He has been to space. He was a Democrat — exactly the type of voter we want. And now look at it."

Gor has told others he wasn't responsible — and that GOP senators were, including Texas Sen. Ted Cruz, chair of the Committee on Commerce, Science, and Transportation, which oversees NASA.

• Advisers in several GOP Senate offices involved in the nomination, including Cruz's, say they didn't know of any senators or staffers who opposed Isaacman.

Cruz, indeed, raised objections in December, when Musk persuaded Trump to nominate Isaacman to lead NASA. Cruz raised two issues then:

1. Isaacman had contributed to Democrats opposing GOP senators Tim Sheehy of Montana and Bernie Moreno of Ohio last year.
2. Isaacman, like Musk, wants NASA to focus on colonizing Mars, but Cruz is focused on moon exploration. The Texas senator wants to compete with the Chinese space efforts there — and keep the Johnson Space Center in Houston operational as mission control for the Artemis program.

Behind the scenes: Musk called Cruz when he heard of his objections. Isaacman then promised he would prioritize Artemis. Sheehy and Moreno said they had no problems with Isaacman.

• Cruz held a confirmation hearing on April 30 for Isaacman, whose nomination was approved by the committee 19-9.
• Three Senate sources and two White House insiders said they expected Isaacman to get 70 or 80 votes on the Senate floor, a rarity in the closely divided chamber.
• "I thought we were going to confirm him this week," Cruz told Axios. Asked if he had any input in scuttling Isaacman's confirmation, Cruz said: "That's not accurate."

Meanwhile, Gor "spun up the president by just constantly mentioning the donations," a Trump adviser said.

• On May 30, before a joint press conference with Musk to announce his departure from the White House — which appeared amicable at the time — Gor dropped off a background file on Isaacman with Trump at the Oval Office. Musk later entered the room and Trump asked him about Isaacman.
• "This guy gave to Democrats," Trump said to Musk, according to a person familiar with the meeting.
• "It's not like Elon really defended him. He said, 'He's really competent. But yeah, he gave to Democrats,'" the source said.

In a written statement, White House communications director Steven Cheung said Gor "is a vital member of the team and he has helped President Trump put together an administration that is second to none."

To honor the end of Elon Musk's "incredible" government service, President Trump presented his friend, adviser and billionaire benefactor with a golden key to the White House.

• Six days later, Musk lit the place on fire.

Why it matters: The most powerful civilian ever has effectively declared war on the president of the United States, incinerating their relationship — at least for now — in one of history's most extraordinary political meltdowns.

• The long-predicted rupture built over months, but exploded in hours — unfolding in real time in the Oval Office, on Truth Social, and above all, on X.
• The consequences were tectonic, shaking the foundations of a MAGA-tech coalition that has mapped out grand ambitions for Trump's second term.

Catch up quick: Tensions have simmered all week over Musk's scathing criticism of Trump's budget-busting tax bill, which is projected to add trillions to the national debt.

• On Thursday, Trump claimed the Tesla CEO was lashing out over the bill's rollback of electric vehicle credits — and suggested he was suffering from "Trump Derangement Syndrome."
• Musk responded by committing what can only be described as an unforgivable sin in Trumpworld: Claiming credit for the president's 2024 election victory and arguing that his political power would far outlast Trump's.

Trump fired back by threatening to terminate Musk's billions of dollars in government subsidies and contracts, and declaring that his former adviser had gone "crazy."

• Over the next few hours, Musk would call for Trump's impeachment, claim the president is implicated in unreleased Jeffrey Epstein files, and float the creation of a new political party.
• He also announced that SpaceX would "begin decommissioning its Dragon spacecraft immediately" — a move that would disrupt NASA operations and sever a core link between his empire and the federal government.

Between the lines: Musk later walked back that threat and opened the door to a thaw with Trump. He responded positively to a plea by financier Bill Ackman that they make peace.

• Politico reported late Thursday that Trump aides had scheduled a call between the two for Friday.
• But the episode underscored the extraordinary leverage the billionaire holds over critical government functions — and how easily that power can be politicized.

The big picture: The conflict between two of the world's most powerful men seemed like it was quickly barreling toward mutually assured destruction.

• Musk, who spent nearly $300 million to support Trump and GOP candidates in 2024, views the swelling deficit as an existential threat, and has promised to target any Republican who votes for the bill.
• GOP lawmakers, many of whom have spent years terrified by the prospect of a Trump-backed primary threat, are now praying the president's endorsement is worth more than Musk's war chest.

Between the lines: Some pro-Trump activists seized the opportunity to claim vindication for their skepticism of MAGA's tech alliance, some of which dates back to an early but revealing debate over H1-B visas.

• MAGA whisperer Steve Bannon called for the South African-born Musk to be investigated and deported — and for SpaceX to be seized by the U.S. government.
• Some prominent influencers, such as Charlie Kirk, urged reconciliation between two of the American right's most influential power centers.

The bottom line: Trump reached for a surprising analogy Thursday when discussing the war between Russia and Ukraine: two kids scrapping in the park who need to fight it out a bit before separating.

• Within hours, top Republicans in Washington were wondering if that's what they were seeing between Trump and Musk.
• Could they sit this one out until the punching stopped? Or would the two biggest kids on the playground just keep swinging — and bruise the entire movement?

Retailers are supercharging their store brands to boost sales and keep prices low in the face of rising tariff pressures.

Why it matters: The popularity of private-label products could soar as tariffs threaten to drive national brand prices higher.

• "Private label is growing faster than mainstream retail and part of the reason is that consumers can save money by switching," GlobalData managing director Neil Saunders told Axios.
• "This has been happening for a long time and the trend might be accelerated if tariffs push up prices," Saunders said.

The big picture: Store brands are no longer the generic knockoffs of the past. They are a "destination driver" for many retailers, Sally Lyons Wyatt, global executive vice president and chief industry adviser at Circana, told Axios.

• Private brand products cost 20% less than national brands, Lyons Wyatt said.
• The price gap between private label and national brands has grown by 38% since 2019, according to data firm Numerator's Private Label Perceptions report.

Tariffs and store brands

State of play: Store brands aren't immune to tariffs, but large retailers have more control to minimize the impact because they have better leverage to negotiate terms with suppliers and reduce production costs.

• Walmart CEO Doug McMillon told Axios in April that the retailer has more "visibility and control over what happens" with its store brands.
• Retailers have been diversifying where their private brand products are manufactured and pushing for more American-made products.

What they're saying: "Private brand will continue to be a way that we show great value to customers," McMillon said.

• Costco has been adding new products to its Kirkland Signature brand and seeing the brand's sales outpace the company's overall sales, CEO Ron Vachris said in a May 29 earnings call.
• "In times of consumer uncertainty, our Kirkland Signature brand is uniquely positioned to provide our members with great quality and great values," Vachris said.

Aldi: "Nobody else is 90% private label"

Zoom in: A poster child for the private brand is discount grocer Aldi, where 90% of products are store-owned brands.

• "Nobody else is 90% private label. If you have all these (national) brands, you're really at the mercy of what the brand says the cost is going to be," Scott Patton, Aldi's chief commercial officer, told Axios. "We get to control that. The private label is really our differentiator."
• Patton said just 4% of Aldi's assortment "is impacted by tariffs."
• "We do have some globally sourced items," Patton said, noting imported wines from Chile as an example. "So there are going to be some areas of the store that are subject to a tariff. That doesn't mean that we're going to take that tariff and pass it on the consumer."

Summer savings: Aldi lowers prices

The intrigue: Aldi announced Thursday that it is dropping prices on more than 400 products — nearly 25% of its in-store selection — to help consumers save this summer.

• Patton said the prices have dropped on products throughout the store, including produce, meats like baby back ribs and grass-fed ground beef, chips, breads, yogurt, frozen items and the retailer's prebiotic Popz soda.
• Consumers will see red price tags throughout the store to identify price drops.

Yes, but: Two industry-wide categories that have had price increases are chocolate and coffee, Patton said.

Costco was "continuing to move more items to locally sourced production, which is allowing us to lower prices in those markets," CFO Gary Millerchip said last week.

• Millerchip cited some examples of lower prices including 2-liter Kirkland Signature organic extra virgin olive oil, which went from $24.99 to $18.39.

More from Axios:

• Where to get National Doughnut Day deals and freebies Friday
• Nintendo Switch 2 is here. What to know about Thursday's release
• Uber launches senior accounts to simplify rides for older adults
• McDonald's, Popeyes gear up for chicken sandwich war's new battle

Generative AI is evolving so fast that security leaders are tossing out the playbooks they wrote just a year or two ago.

Why it matters: Defending against AI-driven threats, including autonomous attacks, will require companies to make faster, riskier security bets than they've ever had to before.

The big picture: Boards today are commonly demanding CEOs have plans to implement AI across their enterprises, even if legal and compliance teams are hesitant about security and IP risks.

• Agentic AI promises to bring even more nuanced — and potentially frightening — security threats. Autonomous cyberattacks, "vibe hacking" and data theft are all on the table.

Driving the news: Major AI model makers have unveiled several new findings and security frameworks that underscore just how quickly the state of the art is advancing.

• Researchers recently found that one of Anthropic's new models, Claude 4 Opus, has the ability to scheme, deceive and potentially blackmail humans when faced with a shutdown.
• Google DeepMind unveiled a new security framework for protecting models against indirect prompt injection — a threat in which a bad actor manipulates the instructions given to an LLM. That takes on new consequences in an agentic world.

Case in point: A bad actor could trick an AI agent into exfiltrating internal documents simply by embedding a hidden instruction in what looks like a normal email or calendar invite.

What they're saying: "Nobody thought the concept of agents and the usage of AI would get rolled out so quickly," Morgan Kyauk, managing director at late-stage venture firm NightDragon, told Axios.

• Even NightDragon's own framework, rolled out in mid-2023, likely needs to be revised, Kyauk added.
• "Things have changed around AI so quickly — that's been the surprising part about being an investor in this category," he said.

Zoom in: Kyle Hanslovan, CEO and co-founder of cybersecurity platform Huntress, told Axios that his company is only making decisions about AI — including how to implement it and how to secure against it — on a six-week basis.

• "I think that is probably too long," Hanslovan said in an interview on the sidelines of Web Summit Vancouver. "But if you do more than that, then what happens is whiplash."

By the numbers: Companies now have an average of 66 generative AI tools running in their environments, according to new customer research from security firm Palo Alto Networks on Thursday.

• But the security stakes keep growing: About 14% of data loss incidents so far in 2025 involved employees accidentally sharing sensitive corporate information with a third-party generative AI tool, according to the report.

Reality check: One hallmark of generative AI is the ability to rapidly advance its reasoning capabilities by turning it back upon itself. In hindsight, experts say, the need for security to be just as adaptive should have been obvious.

• "Why did we think, with something that's adapting as quickly as AI, it was even OK to have more than a six-month model?" Hanslovan said.

Yes, but: John "Four" Flynn, vice president of security at Google DeepMind, told Axios that while some parts of AI security are new, like prompt injection or agent permissioning, many other aspects just extend known practices.

• If an agent is running, security teams would still need to examine what data sources that agent should have permission to access or how secure the login protocols are for that agent.
• "All is not lost, we don't have to reinvent every single wheel," Flynn said. "There are some new things, but there's a lot of things that we can lean on that we've become quite good at over the years."

The intrigue: CISOs and their teams are more comfortable with generative AI than they have been with other big technological shifts — and that could give defenders an edge in developing new tools to fend off incoming attacks, Kyauk said.

• "If you're a cybersecurity professional and you use ChatGPT on a daily basis to find a recipe or to help you plan your travel itinerary... you begin to see how accurate some of the responses are," Kyauk said.
• "There's more willingness to adopt the tools then."

Go deeper: Malware's AI time bomb

President Trump and Elon Musk struck more conciliatory tones on Thursday night, hours after their feud ignited and then escalated over social media.

The big picture: After day that was marked by Trump threatening to cancel billions of dollars of government contracts with Musk's companies and the world's richest person calling for the president's impeachment, there are signs that tensions between them might be easing.

Driving the news: White House aides scheduled a call between the pair for Friday, per Politico, which spoke briefly to Trump in a Thursday night phone interview.

• Trump sought to reassure the outlet about their relationship during the brief phone call, per Politico. "Oh it's okay," he said when asked about the fallout. "It's going very well, never done better."
• White House press secretary Karoline Leavitt said on Fox News' "Hannity" Thursday evening that the focus of the president and his administration was "on passing the one big, beautiful bill," which Musk called a "disgusting abomination" in the leadup to his online clash with Trump.
• Leavitt noted to Fox News' Sean Hannity that last Friday, "the president graciously hosted Elon Musk in the Oval Office and Elon thanked the president for his incredible leadership to cut waste, fraud and abuse in our government, which this one big, beautiful bill does."
• She added: "So the only difference between Friday and today is Elon went back to his companies. And, as a businessman, he has a right to speak for his companies. But as president, President Trump has a responsibility to fight for this country."

Meanwhile, Musk appeared to walk back an earlier threat he made on X to decommission the Dragon spacecraft, which is essential to NASA's operation.

• After an X user on Thursday night called the "back and forth" between Musk and Trump "a shame" and suggested they cool off and "take a step back for a couple days," the Tesla CEO responded: "Good advice. Ok, we won't decommission Dragon."

More from Axios:

• Trump and Musk lose billions as feud spooks investors
• Musk becomes GOP pariah after "ridiculous" Trump attacks
• "Such ingratitude": How much money Musk funneled into the 2024 election

Editor's note: This article has been updated with comment from White House press secretary Karoline Leavitt.

House Democrats are asking the Department of Justice and FBI whether it is true, as Elon Musk now claims, that President Trump is in the Epstein files, Axios has learned.

Why it matters: It's the starkest example to date of how the highly public feud between the president and his onetime lieutenant is playing right into the hands of the Trump's political opponents.

• Trump "is in the Epstein files," Musk wrote Thursday in a post on X, adding, "That is the real reason they have not been made public."
• The Tesla CEO also called for Trump to be impeached, a position that even many Democrats are reluctant to take.

Driving the news: In a letter to Attorney General Pam Bondi and FBI Director Kash Patel first obtained by Axios, Reps. Stephen Lynch (D-Mass.) and Robert Garcia (D-Calif.) asked that they "immediately clarify whether this allegation is true."

• The lawmakers asked for a timeline of the DOJ's declassification and publication of the Epstein files, an explanation for why they haven't turned over any new documents since February.
• And they requested a description of Trump's role in reviewing the files, a list of personnel involved in their release and an answer for why files previously released to Congress contained "significant redactions."
• Lynch is the acting ranking member of the House Oversight Committee and Garcia is the top Democrat on the Task Force on the Declassification of Federal Secrets.

State of play: Bondi released more than 100 pages of documents related to the Epstein case in February as part of a Trump administration push to provide more transparency into a wide array of high-profile cases.

• The files were substantially redacted, however, and Rep. Anna Paulina Luna (R-Fla.), the chair of the declassification task force, has accused Bondi of "stonewalling" her demands for more files.
• "We agree with their conclusion that the release of these documents is long overdue," Lynch and Garcia wrote.

What they're saying: Musk's allegation "implies that the President may be involved in determining which files should be released and whether files will be withheld from the public if he personally chooses," the two Democrats wrote.

• They noted that Trump and Epstein's relationship has been well-documented.
• "Any attempts to prevent the appropriate release of the Epstein files to shield the President from truth and accountability merits intense scrutiny by Congress and by the Department of Justice," they added.
• The FBI declined to comment on the matter. Representatives for the White House and DOJ did not immediately respond to Axios' requests for comment on Thursday evening.

Editor's note: This article has been updated to note that the FBI declined to comment.

The man accused of throwing Molotov cocktails at pro-Israel demonstrators was charged in Colorado state court Thursday with 118 counts, court documents show.

The big picture: Mohamed Sabry Soliman, who was also charged with a federal hate crime, now faces 28 counts of attempted murder.

• The 45-year-old is also facing multiple counts related to the use and attempted use of an explosive/incendiary device and one count of cruelty to animals.
• Soliman is being held in lieu of a $10 million bond.

Zoom in: Sunday's attacked left 15 people injured, the Boulder County District Attorney's office said Thursday.

• All of the victims are expected to survive.

Context: The suspect yelled "Free Palestine!" as he threw the Molotov cocktails at pro-Israel demonstrators on Sunday, an FBI agent wrote in an affidavit.

• The demonstration was organized by Run for Their Lives in support of the hostages as "a peaceful walk to show solidarity with the hostages and their families, and a plea for their release."

Go deeper: Suspect in Boulder Molotov attack faces federal hate crime charge

Elon Musk's bitter public breakup with President Trump has included an undeniable fact: the world's richest man contributed more than any other billionaire donor to support Republicans in 2024 — by a lot.

Why it matters: Musk has said he'd pull back on political spending, after his six months in Washington left him with empty DOGE promises and his companies in turmoil.

• But where he puts his cash has massive potential influence — including toward any future political pursuits.

• In one of his first and most damning swipes at Trump, Musk claimed credit for the president's 2024 victory: "Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate." He blasted the "ingratitude."
• While a newer Republican megadonor, Musk joined an existing class funneling millions to Trump in 2024.
• Other top donors included businessman Timothy Mellon and Miriam Adelson, widow of casino magnate Sheldon Adelson who, with her late husband, was Trump's biggest backer in 2020.

By the numbers: Of the roughly $295 million Musk contributed to Republicans in the 2024 election, the vast majority went to Trump.

Zoom out: The Musk-Trump feud bursted publicly mostly on social media Thursday, beginning with Trump speaking in the Oval Office and Musk rapidly posting on X.

• While the president had offered his former special government employee a warm sendoff Friday, the Tesla CEO this week ratcheted up his attacks on Trump's signature bill. Musk has criticized the bill for its cost: estimates say it could add trillions to the federal deficit.
• On Wednesday, Musk urged his followers on X to call their representatives to "KILL the BILL."

Go deeper: How Trump and Musk went from bromance to bitter dispute

Congressional Republicans are openly attacking Elon Musk like never before after the billionaire Tesla founder claimed President Trump is "in the Epstein files" and even called for him to be impeached.

Why it matters: It's a stunning fall from grace for a man who flexed so much influence over Republican lawmakers just weeks — even days — earlier.

• "This is absolutely childish and ridiculous. Enough of this nonsense," Rep. Greg Murphy (R-N.C.) said of Musk's comments, adding that the recently departed Trump lieutenant has "lost some of his gravitas."
• "Nobody elected Elon Musk, and a whole lot of people don't even like him, to be honest with you, even on both sides," said Rep. Jeff Van Drew (R-N.J.).
• A spokesperson for Musk did not immediately respond to a request for comment.

Driving the news: Musk initially focused his attacks on the massive GOP tax and spending cut legislation, arguing Tuesday that it doesn't go far enough in cutting the deficit.

• By Thursday, he turned his sights on Trump, claiming Trump is "in the Epstein files" and adding, "The truth will come out."
• He took his boldest step by responding to a post that said "Trump should be impeached and JD Vance should replace him" with a single word: "Yes."

What they're saying: "We're getting people calling our offices 100% in support of President Trump," said Rep. Kevin Hern (R-Okla.), a member of House GOP leadership.

• "Every tweet that goes out, people are more lockstep behind President Trump and [Musk is] losing favor," Hern added.
• Rep. Lloyd Smucker (R-Pa.) said Musk is "starting to look a little crazy" and "was always an important voice, but ... it's going to be a lot more people weighing what Trump has to say than what Musk has to say."

Between the lines: Musk's $420 billion net worth and ability to pour millions into any given GOP primary has been something of a Sword of Damocles for congressional Republicans since he entered politics.

• He has even signaled he supports primary challenges against the 215 House Republicans who voted for the bill.
• But now that it's Trump vs. Musk, Republican lawmakers privately say they're far more afraid of a Trump non-endorsement than they are of Musk's money.

What we're hearing: "I would rather have Trump on my side," said one House Republican, speaking on the condition of anonymity to offer candid thoughts on the electoral side of the Trump-Musk blowup.

• Said another: "On the value of Elon playing against us in primaries compared to Trump endorsing us in primaries, the latter is 100 times more relevant."
• "Elon can burn $5 million in a primary, but if Trump says 'that's the person Republicans should reelect,' it's a wasted $5 million," the lawmaker said.

The intrigue: Even critics of Trump's "One Big, Beautiful Bill" say Musk is undermining the substantive case he and others are trying to make against the legislation in its current form by turning to personal attacks.

• "I think it undermines his effectiveness," said Rep. Tim Burchett (R-Tenn.). "I would not have recommended that."
• Others said Musk waited too long to weigh in: "It was disappointing to see Elon Musk's outrage, if you will, come when it did. We could've used his voice a couple weeks ago," said Rep. Eli Crane (R-Ariz.).

Yes, but: There remains a small rump caucus of Republicans who are willing to keep saying complimentary things about Musk — even at the risk of alienating Trump.

• Rep. Thomas Massie (R-Ky.), a steadfast opponent of the bill who Trump has called to primary, said that while he doesn't support impeaching Trump, he still respects Musk.
• "This is the language Trump speaks in. [Musk] is speaking it back to him," Massie said.
• Rep. Ralph Norman (R-S.C.) called Musk a "genius" and said "words, to me, don't matter. It's what he does."

The bottom line: Republicans are finally acknowledging that this rift was foreseeable given the big personalities involved.

• "You've got two high-profile, strong leaders. In some ways, this was probably bound to happen," said Norman.
• Rep. Mark Alford (R-Mo.) told Axios: "I think we all kind of knew that it was not going to end great."

A federal judge temporarily blocked President Trump's proclamation that suspended the entry of international students seeking to attend Harvard University.

Why it matters: U.S. District Court Judge Allison Burroughs' temporary restraining order marks the latest legal blow for Trump in his attempt to strip Harvard of its ability to host international students amid a weeks-long legal battle with the Ivy League school.

The latest: In the ruling, the Obama-appointed Burroughs extended her earlier temporary restraining order blocking the Department of Homeland Security's move to revoke Harvard's ability to host international students until June 20.

• DHS assistant secretary Tricia McLaughlin in a Thursday night emailed statement said the ruling "delays justice and seeks to kneecap the President's constitutionally vested powers" under Article II of the Executive Branch.

Driving the news: Harvard argued in Thursday's filing, which amends an existing lawsuit, that Trump's proclamation violates the First Amendment.

• The university alleges that the president's actions "are not undertaken to protect the interests of the United States," but instead to pursue a government vendetta against Harvard."
• "With the stroke of a pen, the DHS Secretary and the President have sought to erase a quarter of Harvard's student body, international students who contribute significantly to the University and its mission and the country," the university's amended complaint states.
• "Without its international students, Harvard is not Harvard."

What they're saying: Harvard President Alan Garber said in a message to the campus community that the university is working on contingency plans to ensure international students can continue their work at Harvard.

• "International students and scholars make outstanding contributions inside and outside of our classrooms and laboratories, fulfilling our mission of excellence in countless ways," he said.
• "We will celebrate them, support them, and defend their interests as we continue to assert our Constitutional rights."

The other side: "It is a privilege, not a right, for universities to enroll foreign students and benefit from their higher tuition payments to help pad their multibillion-dollar endowments; that fact hasn't changed," McLaughlin said.

• "The Trump administration is committed to restoring common sense to our student visa system, and we expect a higher court to vindicate us in this. We have the law, the facts, and common sense on our side."
• Representatives for the White House did not immediately respond to Axios' request for comment Thursday evening.

State of play: Trump suspended the entry of international students to attend Harvard through an executive order on Wednesday.

• He ordered cabinet officials to determine whether international students at Harvard who are in the U.S. should have their student visas revoked.
• The suspension was expected to last at least 90 days, per the order.

Meanwhile, Homeland Security Secretary Kristi Noem's order to DHS to terminate Harvard's student and exchange visitor program certification has stalled in the courts.

More from Axios:

• Trump suspends entry to Harvard's international students
• Foreign students consider fleeing Harvard after Trump threats, university says
• Trump admin nixes Harvard's ability to enroll international students

Editor's note: This a breaking news story. Please check back for updates.

House Republicans are issuing a subpoena to former President Biden's personal physician Kevin O'Connor as part of their investigation into the ex-president's health.

Why it matters: House Oversight Committee chair James Comer (R-Ky.) is ramping up the probe after new revelations emerged about Biden's cognitive decline in Alex Thompson and Jake Tapper's new book, "Original Sin."

• In addition to O'Connor, Comer has requested testimony from nine of Biden's former aides including Neera Tanden, Anita Dunn and Ron Klain.

Driving the news: In a letter to O'Connor accompanying the subpoena, Comer wrote that the Biden doctor is compelled to appear at a deposition on June 27.

• Comer wrote that he is investigating whether O'Connor "contributed to an effort to hide former President Biden's fitness to serve from the American people."

Zoom in: O'Connor's attorney cited D.C. statute, the American Medical Association's code of ethics and the principle of physician-patient privilege in refusing to accept Comer's initial request for testimony, Comer wrote.

• Comer called those claims "improper and illegitimate" and said sending written questions "will not satisfy the Committee's legitimate oversight and legislative needs."

The two most powerful people in the U.S. have gone from friends to foes.

Why it matters: Elon Musk and President Trump's (very) public online feud imperils billions of dollars in government contracts for Musk as the former DOGE head continues to go scorched earth against the president.

Driving the news: Musk has spent the past week criticizing Trump's "big, beautiful bill," escalating those attacks on Thursday via X, which he owns, calling for Trump's impeachment and accusing the president of being "in the Epstein files."

Here's a timeline of the key posts from the online implosion:

The bromance of President Trump and Elon Musk appears to be over after a public fracturing on Thursday.

The big picture: The Tesla CEO initially seemed to leave the Trump administration on a good note and was expected to remain one of the president's most influential outside advisers. That no longer appears to be the case.

• While both men are known to go on social media rampages, the president admitted Thursday he was bothered by his former adviser's posts criticizing his "big, beautiful" spending bill.

Here's a look at how the pair's relationship took off and came to an end:

June 5: Trump admits rupture

President Trump said Thursday he doesn't know if he and Musk will still have "a great relationship" after the former DOGE head spent days blasting the spending bill.

• Musk fired back in an X response writing, "Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate."

June 3: Musk criticizes "One Big, Beautiful Bill"

Musk slammed the bill as a "disgusting abomination," writing in a post on X, "Shame on those who voted for it: you know you did wrong. You know it."

• In another post, Musk responded to a user's criticism of the bill writing, "In November next year, we fire all politicians who betrayed the American people."

May 30: Trump gives Musk warm public sendoff

Trump during a press conference said Musk is "really not leaving" and was "going to be back and forth."

• Musk said he would continue to visit as a "friend" and adviser to the president.

May 28: Musk confirms he's departing administration

Musk confirmed he is leaving the Trump administration, thanking Trump "for the opportunity to reduce wasteful spending."

• The billionaire CEO pivoted to damage control in his final days as a "special government employee," publicly recommitting to Mars, cars and robots after a bruising year in the political limelight.

Feb. 11, 2025: Musk joins Trump in Oval Office

Musk, with his young son in tow, appeared alongside Trump in the Oval Office.

• The pair defended their efforts to enact major changes to the government and to limit spending.

Nov. 12, 2024: DOGE announced

Trump announced that Musk and Vivek Ramaswamy would lead a new "Department of Government Efficiency" (DOGE), operating as an independent advisory group to cut government spending and streamline bureaucracy.

Nov. 6, 2024: Election night

Musk was with Trump on election night as the latter was declared the winner of the presidential election.

Oct. 16, 2024: Musk becomes GOP mega-donor

Musk gave nearly $75 million in three months to his pro-Trump America PAC, underscoring his commitment to getting Trump elected.

• He eventually donated more than $250 million to the super PAC during the 2024 election campaign, making Musk Trump's biggest financial booster.

Oct. 5, 2024: "Dark MAGA"

Musk appeared at a Trump rally for the first time since his endorsement, wearing a black "Make America Great Again" cap, and said: "As you can see, I'm not just MAGA — I'm dark MAGA."

Aug. 12, 2024: Musk suggests role in White House

Musk hosted Trump on X for a "conversation" that turned into an extension of a campaign speech, where he suggested that Trump should form a commission focused on "government efficiency" and appoint him to it.

July 13, 2024: Musk endorses Trump

Musk endorsed Trump on X minutes after he was ushered off stage by Secret Service agents at a rally in Pennsylvania when the then-presidential hopeful came under fire.

Go deeper: Republicans scramble to avoid a war with Elon Musk

Editor's note: This story has been updated with additional dates.

Elon Musk unleashed a fresh round of tweets late Thursday afternoon, calling for President Trump to be impeached and declaring that SpaceX would begin decommissioning a spacecraft essential to NASA's operation — though he later backtracked on this threat.

Why it matters: Trump's threat to cancel billions of dollars of government contracts with Musk's companies has ignited a new round of escalation in the explosive civil war between the two former allies.

Driving the news: "In light of the President's statement about cancellation of my government contracts, SpaceX will begin decommissioning its Dragon spacecraft immediately," Musk wrote on X.

• The U.S. has relied on the Dragon spacecraft, both crewed and cargo versions, for years to keep the International Space Station supplied and operating. Shutting them down would leave the ISS reliant on Russia.

The intrigue: Ian Miles Cheong, a prominent Musk supporter and right-wing activist on X, tweeted: "President vs Elon. Who wins? My money's on Elon. Trump should be impeached and JD Vance should replace him."

• Musk responded to Cheong: "Yes."
• When another follower suggested they could finally be honest about the stupidity of Trump's tariffs, Musk posted: "The Trump tariffs will cause a recession in the second half of this year."
• When another X user on Thursday night called the back and forth between Musk and Trump "a shame" and suggested they cool off and "take a step back for a couple days," Musk responded: "Good advice. Ok, we won't decommission Dragon."

Musk, the world's richest man, also spent much of the afternoon tweeting about Trump's alleged ties to notorious sex offender and financier Jeffrey Epstein.

• "Time to drop the really big bomb: Trump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!" Musk posted.

The big picture: The stunning collapse of the relationship was ostensibly triggered by Musk's scathing criticism of Trump's signature bill, which is projected to add trillions to the national debt.

• Trump suggested that the Tesla CEO was upset about the rollback of electric vehicle credits, and that he — like other disgruntled former officials — was suffering from "Trump Derangement Syndrome."
• That's when Musk set the feud on fire — unleashing dozens of tweets highlighting the GOP's hypocrisy on deficits, claiming Trump would have lost in 2024 without him, and floating a new political party.

What to watch: The MAGA coalition is now under massive pressure to pick sides, splintering after six months of a mostly harmonious relationship between the president and the world's richest man.

• Steve Bannon, a prominent MAGA voice who has long despised Musk, called for the South African-born billionaire to be deported in an interview with the New York Times.

More from Axios:

• Trump and Musk lose billions as feud spooks investors
• Musk becomes GOP pariah after "ridiculous" Trump attacks
• Scoop: Democrats probe whether Trump is in the Epstein files

Editor's note: This article has been updated Elon Musk's Thursday night X post saying that he won't decommission Dragon.

Israel has reassured the White House that it won't launch an attack against Iran's nuclear facilities unless President Trump signals negotiations with Iran have failed, two Israeli officials with direct knowledge tell Axios.

Why it matters: The Trump administration has been concerned in recent weeks that Israel is preparing to launch a strike despite the ongoing talks, and President Trump said he cautioned Israeli Prime Minister Benjamin Netanyahu against making his move while talks are still taking place.

• But Trump also said his stance "could change with a phone call" if he feels the talks with Iran are going nowhere.

Behind the scenes: Israel conveyed the message of reassurance during a visit to Washington last week by Strategic Affairs Minister Ron Dermer, Mossad Director David Barnea and National Security Adviser Tzahi Hanegbi, Israeli officials say.

• One official said the Israelis made it clear to their U.S. counterparts that Israel won't surprise the Trump administration with a military strike on Iran.
• "We calmed the Americans and told them there is no logic in launching an attack if a good diplomatic solution can be found. This is why we are going to give it a chance and wait with any military action until it is clear that negotiations were exhausted and [White House envoy] Steve Witkoff has given up," a second Israeli official said.
• A senior Israeli official said that while the Israel Defense Forces are training all the time for a possible strike against Iran, the U.S. and other countries misread measures the IDF took ahead of strikes against the Houthis in Yemen as preparations for an imminent strike against Iran.

State of play: The White House is still waiting for Iran's response to its proposal for a nuclear deal. Iranian officials said the response is now being drafted.

• Trump accused Iran on Wednesday of "slow-walking their decision" hours after Iranian Supreme Leader Ali Khamenei criticized the U.S. offer.
• Trump's two-month deadline for a deal will expire next week, according to the White House's interpretation of that timeline.
• U.S. officials say that for now, a new round of talks between Witkoff and Iranian Foreign Minister Abbas Araghchi is not expected to take place this weekend.

What to watch: Netanyahu told Trump he's skeptical about the chances of a U.S.-Iran nuclear deal, an Israeli official said.

• The Israeli official thinks that, regardless of the gaps in the negotiations with the U.S., the Iranians will make an effort to prevent the talks from collapsing.
• "It could take another several months of negotiations before Trump decides it has failed," one Israeli official said.