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The Latest: Former labor secretary oversaw hostile work environment, misused funds, report finds

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The Latest: Former labor secretary oversaw hostile work environment, misused funds, report finds
News

News

The Latest: Former labor secretary oversaw hostile work environment, misused funds, report finds

2026-09-04 23:48 Last Updated At:23:50

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.

Meanwhile, 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:

In a news release about sanctions on a Turkish bank, U.S. Treasury Secretary Scott Bessent said financial institutions with ties to Iran will “continue to find out the hard way that we are serious about Operation Economic Outcast.”

“While we hope no more banks will need to be sanctioned, that ultimately depends on how quickly the international community comes to its senses and ceases support of the murderous Iranian regime,” he continued.

“We know who you are, we know where you are, and we will continue to take action together with our allies and partners until we have buried the head of the Iranian snake.”

The U.S. Treasury Department announced Friday it has imposed sanctions on a Turkish financial institution as part of its latest effort to sever “critical financial lifelines” for the Iranian government.

The actions against Golden Global Yatirim Bankasi Anonim Sirketi come nearly a week after Treasury Secretary Scott Bessent announced “Operation Economic Outcast” as the new effort by Washington to get Tehran to capitulate to its demands after more than six months of war.

Last week, the U.S. targeted an Egyptian bank’s operations in the United Arab Emirates.

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Among the allegations are accusations that senior staff berated employees in front of colleagues and made staffing decisions based on physical appearance rather than professional qualifications.

In one incident, during a personal trip to Oregon, Chavez-DeRemer allegedly stopped at a strip club featuring partially nude dancers and directed her limousine driver to give money to a performer, the report said.

The report says it was based on interviews with 53 current and former labor department staffers and one employee from another federal agency, as well as a review of more than 500 documents, images and videos.

The president posted on his social media site that the job tally broke “all estimates (except mine!).”

“Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago! A STRONG COUNTRY MEANS A LOWER INTEREST RATE” Trump wrote.

He added that, “We should have the LOWEST RATE of any country in the World, like ‘the old days’ and threatened: “LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.”

In August, employers added a surprising 162,000 jobs, according to the latest jobs report.

Federal Reserve Chair Kevin Warsh has said inflation is still too high and suggested the central bank may have to raise interest rates in the coming months.

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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Vice President JD Vance speaks with reporters in the James Brady Press Briefing Room at the White House, Thursday, Sept. 3, 2026, in Washington. (AP Photo/Alex Brandon) CORRECTION: Date corrected to Sept. 3 instead of July 23.

Vice President JD Vance speaks with reporters in the James Brady Press Briefing Room at the White House, Thursday, Sept. 3, 2026, in Washington. (AP Photo/Alex Brandon) CORRECTION: Date corrected to Sept. 3 instead of July 23.

President Donald Trump speaks during an event with Republican lawmakers in the Rose Garden of the White House, Wednesday, Sept. 2, 2026, in Washington. (AP Photo/Alex Brandon)

President Donald Trump speaks during an event with Republican lawmakers in the Rose Garden of the White House, Wednesday, Sept. 2, 2026, in Washington. (AP Photo/Alex Brandon)

LONDON (AP) — Anti-immigration party Reform UK suspended two senior officials on Friday after they were filmed appearing to discuss accepting funds from a foreign donor in potential breach of British electoral law.

Leader Nigel Farage downplayed the aides' conversations as “loose pub talk,” but the party said Dan Jukes, a longtime Farage adviser, and policy chief James Orr “have stepped down from their respective positions” pending the outcome of an internal investigation.

On Thursday, broadcaster Channel 4 aired footage of Jukes and Farage having lunch with two men purporting to be a U.S. financier and his U.K.-based son. Farage listens to the others discussing how a 500,000 pound donation could be channeled to the party through the son, and thanks the men for their support. The “son” was actually a reporter from investigative group Verbatim, and the “father” an actor.

In separate footage, Orr, a Cambridge University theologian, appears to discuss getting the U.S. donor to pay for opinion polls commissioned by Reform UK. Orr tells the undercover reporter that “we just don’t have British-resident donors, British entities, that would support us.”

U.K. electoral law says parties can only accept donations from British voters or U.K.-registered businesses.

The allegations overshadowed Reform’s annual conference, being held Friday and Saturday in Birmingham, central England.

Farage insisted the party had not broken any rules or accepted “dodgy money” and accused the journalists of “entrapment” by what he called foreign-funded climate activists. Verbatim is an offshoot of the Centre for Climate Reporting, a nonprofit investigative group that says it is funded by grants and donations.

He said Jukes and Orr were “contractors that work for us, who’ve said … some injudicious things at best.” Their claims were “loose pub talk, including a couple of boasts that simply were not true,” Farage said.

“The party has done nothing wrong, taken no illegal money," Farage said at a news conference Friday alongside far-right French politician Jordan Bardella.

The governing Labour Party and opposition Liberal Democrats said they had reported the claims to London’s Metropolitan Police. The Electoral Commission, which oversees U.K. elections, said it was “considering all relevant information, in line with our regulatory remit, and we are in touch with the Met Police.”

Founded in 2018 as the Brexit Party to push for a hard break from the European Union, Reform UK has grown rapidly in membership and support since changing its name in 2021 and honing its anti-establishment, anti-immigration message.

Though it holds just eight of the 650 seats in the House of Commons, it has often led opinion polls and was the big winner in local elections in May, a result that helped spur a panicky Labour Party to replace then-leader Keir Starmer with new Prime Minister Andy Burnham.

But Reform has recently suffered reverses, losing several special elections and facing questions about funding. Farage quit his House of Commons seat in July while facing a parliamentary ethics probe over an undeclared 5 million pound gift he received from a Thailand-based cryptocurrency billionaire in 2024, before he was elected to Parliament.

Farage said he would run for reelection and let voters be his judge. He easily won the August election, which was dismissed as a stunt by his critics and boycotted by all the other main parties.

A member wears shoes in Union Flag colours during the Reform party's annual conference at the National Exhibition Centre in Birmingham, England, Friday, Sept. 4, 2026. (AP Photo/Thomas Krych)

A member wears shoes in Union Flag colours during the Reform party's annual conference at the National Exhibition Centre in Birmingham, England, Friday, Sept. 4, 2026. (AP Photo/Thomas Krych)

A member carrys a hat during the Reform party's annual conference at the National Exhibition Centre in Birmingham, England, Friday, Sept. 4, 2026. (AP Photo/Thomas Krych)

A member carrys a hat during the Reform party's annual conference at the National Exhibition Centre in Birmingham, England, Friday, Sept. 4, 2026. (AP Photo/Thomas Krych)

Reform party leader Nigel Farage speaks to the media during the Reform party's annual conference at the National Exhibition Centre in Birmingham, England, Friday, Sept. 4, 2026. (AP Photo/Thomas Krych)

Reform party leader Nigel Farage speaks to the media during the Reform party's annual conference at the National Exhibition Centre in Birmingham, England, Friday, Sept. 4, 2026. (AP Photo/Thomas Krych)

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