The Latest: Trump turns to a dual economic and military approach in latest attempt to squeeze Iran

Friday, September 4, 2026 at 9:18 AM

Confronted by an intransigent Iranian government that’s refused to back down in the face of a massive military campaign, President Donald Trump appears to have settled on a dual-prong approach that combines economic pressure with the potential of a devastating escalation in force.

Vice President JD Vance on Thursday rejected the use of the word “war” to describe the U.S. fighting with Iran as he steered clear of predicting that the 6-month-old conflict would be over by November’s midterm elections, in which Republicans are trying to hang on to their narrow majorities in Congress.

Here’s the latest:

Former Labor Secretary Lori Chavez-DeRemer oversaw a “toxic, intimidating and humiliating” work environment and engaged in numerous violations of department policy, according to a new report from the department’s Office of Inspector General.

The report includes allegations that Chavez-DeRemer “engaged in an inappropriate relationship” with a member of her security detail and violated travel regulations by combining personal and official travel, as well as violating the department’s alcohol policies, directing staff to perform personal tasks on official timing, and failing to report gifts through appropriate channels.

Chavez-DeRemer, who resigned earlier this year, did not immediately respond to a request for comment sent to an email listed on her Facebook page.

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Jordan, a staunch U.S. ally that hosts American forces in the Mideast, has paid a price for its relationship with Washington, which has made the kingdom’s military bases a target of repeat Iranian strikes.

Hundreds of drone and missile attacks have added to other strains on Jordan that include a slumping economy and volatility in the neighboring West Bank, where Israeli settlers have ramped up attacks on Palestinians.

Despite the risk of more strikes, Jordanian leaders say they’re committed to maintaining the relationship after decades of courting deeper security ties with American officials and offering to be a reliable partner with the West in a region rocked by conflict. Analysts say the alliance offers Jordan a way to guard against Iran’s attempts to destabilize its neighbors.

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The jump in hiring last month and low unemployment rate point to a mostly solid job market, a sign the Federal Reserve could lift rates at its meeting next month to combat inflation.

Steady hiring suggests overall interest rates aren’t high enough to cool borrowing, spending and inflation. A hike by the Fed at its Sept. 15-16 meeting could lift borrowing costs for mortgages, auto loans and credit cards.

Vice President JD Vance on Thursday became the latest Trump administration official to urge the Fed to cut rates, rather than raise them, which few economists or Wall Street investors expect.

A lot will ride on next Friday’s inflation report. On Thursday, top Fed official Christopher Waller said his decision on whether to hike rates would largely hinge on whether that report shows inflation cooling or not.

U.S. companies and other employers added 162,000 jobs last month, an improvement from recent months of sluggish hiring, while the unemployment rate stayed a low 4.1%.

The figures suggest businesses are optimistic enough about the economy to expand and gives the Trump administration and Republicans running for Congress a positive talking point heading into midterm elections.

Still, average hourly wages grew 3.1% from a year ago, usually a decent figure but below the August inflation rate of 3.4%. That means Americans are losing purchasing power even amid an otherwise healthy economy.

Big job gains were recorded in manufacturing, construction, and restaurants, bars, and hotels.

Statewide mail voting for this year’s midterm elections kicks off Friday amid a churning legal battle over President Trump’s attempts to limit the practice and mounting concern over Postal Service changes that some state officials blame for a rise in rejected ballots.

The developments have created a sense of uncertainty about a popular voting method used by one-third of the nation’s voters.

North Carolina on Friday is scheduled to become the first state to widely distribute mail ballots for this year’s elections, which will determine the balance of power in Congress for the remainder of Trump’s term.

Election officials said that while they’re closely monitoring the litigation, ballots will be mailed out as expected and the state is prepared to administer a secure election even if the new limits go forward.

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Secretary of State Marco Rubio will travel next week to Colombia, Ecuador and Peru, three South American countries increasingly aligned with the Trump administration’s policies in the hemisphere.

The State Department said Friday that Rubio would discuss enhanced cooperation between the U.S. and the three nations to combat narcoterrorism and expanding commercial ties during his three-day trip that starts Tuesday. It will be Rubio’s fifth trip to Latin America since he became Secretary of State in January 2025.

At each stop, Rubio “will reaffirm the Trump administration’s commitment to a secure, prosperous, and democratic Western Hemisphere,” the State Department said.

The administration and Rubio in particular have made the region a priority, having ousted Venezuela’s former president and taking aim at the governments of Cuba and Nicaragua while cracking down on illegal migration.

Vice President JD Vance on Thursday rejected the use of the word “war” to describe the U.S. fighting with Iran as he steered clear of predicting that the 6-month-old conflict would be over by November’s midterm elections, in which Republicans are trying to hang on to their narrow majorities in Congress.

“I wouldn’t call it a war,” Vance said after being asked during a White House press briefing about whether the fighting could end before voters cast their ballots in the Nov. 3 congressional elections. “Right now, there is no active shooting.”

Vance’s assertion came even as Iran fired at U.S. Gulf ally Kuwait on Thursday as it continued to retaliate for rounds of U.S. strikes on Iran earlier in the week.

Vance’s attempt to minimize the intensity illuminates the difficult task at hand for Trump and his administration as he tries to persuade American voters to keep Republicans in control of Congress.

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Confronted by an intransigent Iranian government that has refused to back down in the face of a massive military campaign, President Donald Trump appears to have settled on a dual-prong approach that combines economic pressure with the potential of a devastating escalation in force.

Having launched “Operation Economic Outcast” just last week to try to isolate Iran from its remaining global trade partners, the Trump administration also resumed strikes in recent days, prompting Iranian retaliation that has renewed concerns of an all-out regional war.

However, the combination of already intense sanctions on Iran and an off-and-on bombing campaign since the war began more than six months ago has not bowed the Iranian leadership and has left the administration struggling to find a way to wind down the conflict. Tehran has dug in its heels — to Trump’s frustration — as energy prices rise, the global economy roils and poll numbers on the administration’s handling of the war dip ahead of November’s midterm congressional elections.

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