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Trump’s grip on party he remade weakens after string of setbacks

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President Donald Trump’s power to bend a compliant Republican Congress to his will has stalled amid a series of political setbacks that threaten to fracture the party heading into next year’s pivotal midterm elections.

In the last week, Trump capitulated to fellow Republicans’ demands for the release of the files of sex trafficker Jeffrey Epstein; saw his $2,000 stimulus check proposal receive a chilly reception on Capitol Hill; and prompted an intra-party debate over midterm campaign priorities with his broader effort to reclaim the affordability mantle.

And late Friday, he lost one of his once-most stalwart allies, Georgia Representative Marjorie Taylor Greene. An instigator of the push to release the Epstein files, Greene announced she would resign from Congress in January as the president and the congresswoman sparred online. That will at least temporarily shrink the Republicans’ already-tiny majority.

The Republican Party is increasingly at war with itself, which doesn’t bode well for its effort to prevent another election-day wipeout like it experienced earlier this month in off-year elections in New Jersey, Virginia, Georgia and California.

Victory With a Cost

Republicans ostensibly won the government shutdown fight, but they did so by blocking an extension of broadly popular tax credits under the Affordable Care Act. Millions of Americans now face spiking health care premiums, and the president’s party is splintered over how to respond. 

Republican Representative Thomas Massie, who has frequently sparred with Trump over Epstein and other matters, this week shrugged off the president’s efforts to unseat him in his safely Republican Kentucky district. 

“I’m winning. He’s losing,” Massie said.

Even the party’s typically mild-mannered congressional leaders — House Speaker Mike Johnson and Senate Majority Leader John Thune — are at odds, with Thune more willing to buck Trump.

Thune first refused to obey Trump’s repeated demands to end the shutdown by changing Senate rules. The two congressional leaders then sparred over the handling of the Epstein legislation. That quickly morphed into another battle over a provision tucked into legislation that stands to enrich a group of GOP senators. Now, they’re playing pass the buck on Russia sanctions legislation. 

A diminished Trump and a splintered party hurt prospects for furthering the president’s legislative agenda around a core issue in the upcoming elections: the state of the US economy. 

Trump has returned from the brink of defeat before, most famously when he left Washington in disgrace in 2021 following his election loss and the Jan. 6 Capitol riot, only to return victorious in 2024.

Trump has repeatedly signaled his own worries about the party’s messaging ahead of the 2026 elections, where Democrats aim to retake at least the House. That would give the party shared control of the nation’s purse strings as well as subpoena power and a reliable check on Trump. 

“Affordable should be our word, not theirs,” Trump said on Monday, referring to the Democratic victories in November where they won by focusing on family-budget issues. 

‘Affordability’ Messaging

Only 15% of voters in a Fox News poll said Trump’s policies were helping the economy, and 76% viewed the economy negatively, with Trump’s approval rating slumping to 41% — a low for the year in that poll.

Vice President JD Vance appealed to voters for patience and predicted an economic boom is coming. “As much progress as we’ve made, it’s going to take a little time for Americans to feel that,” he said at a Breitbart News event on Thursday. 

Trump even backed off some tariffs, notably on agricultural products like bananas and coffee from Brazil, a tacit acknowledgment that his favorite policy tool also can raise consumer costs.

Johnson, whose own fortunes are tied to Trump’s, has increasingly struggled to maintain control of his narrow majority. Both he and Trump were run over this week on the Epstein legislation, flip-flopping in the face of certain defeat after fighting the bill for months. 

Thune also refused Johnson’s pleas to amend the bill to allow the Justice Department to redact information in the files. The Senate agreed to pass the bill by unanimous consent even before receiving it — a sign of just how toxic the Epstein matter has become. 

Johnson also said he’s “very angry” that Thune had inserted a provision into the bill ending the shutdown that could net a group of Republican senators millions from taxpayers in lawsuits over the seizure of their phone records during the Biden administration. 

The provision is already being used by Democrats to attack vulnerable Republicans running for reelection, like Senator Susan Collins of Maine.

Meanwhile, the party’s legislative agenda has largely stalled since July, thanks in part to the shutdown. But that seven-week break masked deep splits among Republicans that are now surfacing.

They do not yet have a consensus on how to deal with spending bills needed to avoid another shutdown at the end of January. They are just now trying to cobble together a Republican health-care plan to replace the Affordable Care Act — something that has eluded the GOP for 15 years. Trump said Friday he wants that done by Jan. 30. 

Many of the most endangered Republicans want to extend the existing ACA subsidies for at least another year lest they be blamed for soaring premiums for tens of millions of Americans, but Trump has vowed to oppose any such measure.

Trump’s faltering clout could be seen when he started touting $2,000 checks to send to Americans, which he claimed would be paid for by tariff revenue. Already, enough Senate Republicans have told Bloomberg they oppose it to kill the measure. 

“I think it would be crazy to send money to people while we have a deficit,” Kentucky Republican Senator Rand Paul said this week. 

Redistricting Backfires

Trump’s push to have Republican states gerrymander their congressional districts to lock in a Republican House majority has backfired, as well, with Democrats potentially set to net seats out of the map-drawing war he started. Indiana Republicans ignored Trump’s public threats and declined to redraw their maps; the Texas GOP’s partisan map is at risk in federal court and Trump’s moves have spurred Democratic states like California to redraw their maps. 

Trump himself has also started to lash out, telling reporters he had yelled himself hoarse to staffers about trade issues. He quipped he would fire Treasury Secretary Scott Bessent if the Federal Reserve didn’t cut interest rates faster. 

He snapped at reporters for questioning his position on the Epstein files, for asking about his family’s business relationships with Saudi Arabia and about the killing of Washington Post columnist Jamal Khashoggi as he met with Saudi Crown Prince Mohammed bin Salman in the Oval Office.

Trump also called for the arrest and potentially the death penalty for a group of Democratic lawmakers who urged the military and intelligence community not to follow illegal orders. That earned him a mild rebuke from Republicans like Thune, who avoided the issue before finally saying he disagreed with Trump’s comments.



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The rise of on-demand leadership in the AI economy

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A quiet but consequential shift is underway in the executive labor market. Companies are rethinking how they access senior judgment in the AI era. 

Rather than defaulting to full-time executive roles that command lofty salaries and long-term overhead, companies are increasingly turning to experienced consultants, strategists, and advisors to provide leadership on a limited and targeted basis.

This is not a dilution of leadership, but a recalibration of where experience delivers the most value.

According to LinkedIn’s latest Jobs on the Rise report, the fastest-growing roles in the U.S. economy sit at the intersection of AI and strategy. AI engineers claimed the top spot, while AI consultants and strategists ranked No. 2 overall. Strategic advisors and consultants also placed in the top 10. Together, the data show that as execution becomes cheaper, human judgment becomes more valuable.

The underlying driver is the implementation gap. After years of AI experimentation, organizations are struggling to convert tools into returns. While they do not lack models or software, many lack orchestration. Companies are increasingly turning to AI consultants and strategists to align technology with business realities, governance, and incentives, work that requires credibility, cross-functional fluency, and the kind of judgment typically associated with senior leadership roles.

The labor market now reflects a clear division of labor. Demand is rising simultaneously for full-time technical AI talent and for senior professionals who can translate those capabilities into business outcomes. As companies scale internal AI teams, they are increasingly relying on external advisors and consultants to provide the judgment required to direct that work at critical moments.

The supply side of this shift is shaped by organizational reality. Executives continue to make daily decisions, but AI has concentrated risk into fewer, more complex, and higher-impact choices around operating models, capital allocation, and governance. Rather than expanding permanent headcount, companies are bringing in experienced external leaders to guide those decisions when the stakes are highest.

The economics reinforce the model. Although senior advisors and consultants often command higher hourly rates, their total annual cost is typically a fraction of a comparable full-time executive role because they are engaged for a limited scope and time. Just as important, this approach allows organizations to draw on multiple forms of expertise rather than binding themselves to a single permanent hire.

The talent profile filling these roles is equally telling. Many of these advisors are former founders, CEOs, and COOs. Experience functions as a filter. LinkedIn’s data shows that many of the fastest-growing strategic roles carry a median of eight or more years of experience. These are not entry-level positions, but mid- or second-act careers for professionals with deep industry context.

The rise of founders and independent consultants on the Jobs on the Rise list also signals that this shift is driven by talent behavior, not just employer demand. Senior professionals are increasingly opting for career paths that offer autonomy, variety, and the opportunity to leverage their skills rather than committing to a single organization in an uncertain environment.

As AI automates and cheapens execution, the market value of human judgment, strategy, and accountability rises. As a result, pricing power shifts from doing the work to deciding what work should be done and how it should scale.

In this environment, experience is the moat. What is often described as “fractional leadership” is better understood as the unbundling of executive judgment from full-time roles. Over time, this model is likely to become not a stopgap but a structural response to the redistribution of value, risk, and expertise in the AI economy.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.



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Trump finds a ‘solution’ to Greenland crisis, backs off on 10% tariff threats

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President Donald Trump seems to have found a “solution” to the Greenland crisis following talks with NATO leadership on Wednesday. He said he will back away from the threat to impose 10% tariffs on eight European allies — an announcement that had sparked a mass sell-off on Tuesday — that were set to take effect on Feb. 1.

The reversal came only hours after Trump walked back an earlier threat to use force to secure Greenland during his World Economic Forum speech in Davos, Switzerland.

“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote on Truth Social, adding that the plan would be “a great one for the United States of America, and all NATO Nations.” He said the tariffs would be shelved “based upon this understanding.”

The announcement followed a meeting with NATO Secretary General Mark Rutte, who has been seeking to defuse growing tensions between Washington and its European allies as Trump escalated rhetoric over Greenland’s strategic importance. Trump also said on Truth Social that additional discussions were underway concerning what he called the “Golden Dome” initiative related to Greenland, without providing details.

Markets reacted sharply to the apparent de-escalation. The S&P 500 rose 1.5% in afternoon trading, while long-term U.S. Treasury yields fell, signaling investor relief after days of volatility. Despite this pullback potentially confirming yet another instance of the “TACO trade,” or “Trump Always Chickens Out,” major questions remain over the substance of the framework. 

Trump has repeatedly said that anything less than controlling all of Greenland is “unacceptable.” It’s unclear, and seems unlikely, that the outline discussed with NATO leadership satisfies that particular condition, given that Denmark reiterated that it would not give up Greenland’s sovereignty after Trump’s speech on Wednesday. 

In his Truth Social post, Trump said Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff would lead negotiations going forward and report directly to him.The announcement also comes after the EU suspended trade negotiations with the U.S. and suspended the trade agreement they have had in place since August. CATO scholar Kyle Handley, in a statement provided to Fortune, wrote that the suspension should have never been seen as a “dramatic breakdown,” because “there was never a real deal to begin with.”

“What’s unraveling now was a fragile, politically convenient set of press releases that papered over fundamental disagreements and was always vulnerable to executive-level tariff threats.”



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Trump says Europe does one thing right: drug prices

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President Donald Trump told an audience of thousands of executives and global leaders at the World Economic Forum that European countries have taken a turn for the worse. Trump said his friends who visit the continent tell him they don’t recognize the region—and “not in a positive way.”

“I love Europe, and I want to see Europe go good,” Trump said on Wednesday at the Davos, Switzerland, meeting. “But it’s not heading in the right direction.”

But the president conceded that Europe is doing one thing better: keeping its drug prices low. 

“A pill that costs $10 in London costs $130. Think—it costs $10 in London, costs $130 in New York or in Los Angeles,” he said to murmurs from the crowd. 

Europe may not be recognizable to Trump’s friends, but Trump said he has other friends returning from London, remarking on the affordability of medication there. Indeed, a 2024 Rand study found that across all drugs, U.S. customers paid on average 2.78 times higher prices than in 33 other countries, including France, Germany, and the United Kingdom, in 2022.

The president has adopted a “most favored nation” policy meant to both lower drug costs for Americans while pushing other countries to pay more. Trump made a concerted effort in his second term to address astronomical drug costs, including minting a deal with 17 pharmaceutical companies to slash U.S. prices to match medication costs overseas. The move followed a sweeping executive order issued in May to introduce the most-favored-nation policy. On Wednesday, Trump alluded to an executive order he signed last week, pledging to lower drug prices by up to 90%.

Fallout with France

Trump said pharma companies did not initially believe countries would be willing to change prices. Trump noted in his remarks that he first approached French President Emmanuel Macron about increasing drug prices, but Macron refused.

“I said, ‘Emmanuel, you’re going to have to lift the price of that pill,” Trump said.

Trump said that threatening a 25% tariff on French goods, including wines and champagne, sealed the deal. Macron’s office disputed Trump’s assertion that he pressured the French president into lowering drug prices. 

“It’s being claimed that President @EmmanuelMacron increased the price of medicines. He does not set their prices. They are regulated by the social security system and have, in fact, remained stable,” Macron’s office said in an X post. “Anyone who has set foot in a French pharmacy knows this.”

Included in the post was a gif of Trump with animated “Fake news!” text overlaid on the image.

Health policy experts say drug prices in the U.S. are so high because of a system structured differently from other countries that allow companies to negotiate with individual insurance companies or pharmacy benefit managers, giving them more leverage to raise prices than in other countries’ systems, where there is one regulatory agency negotiating drug prices for a population.

Efficacy of Trump’s efforts to lower drug costs

Industry leaders think Trump’s efforts to lower drug costs could pay off. Vas Narasimhan, CEO of pharmaceutical giant Novartis, told Fortune’s Jeremy Kahn at a USA House session in Davos on Wednesday that Trump identified a valid issue in the high cost of U.S. drugs.

About two-thirds of new drugs on the market over the last decade have come from the U.S., a result of its highly developed research and development (R&D) infrastructure. Some argue that other countries benefit from U.S. innovation without paying their fair share to support the industry’s growth.

“When you look at what underpins R&D in our industry, it’s been primarily in the United States,” Narasimhan said. “The United States is the source of more than half the profits of the industry, and without the United States, you wouldn’t have all of these innovations, all these incredible medicines.”

Narasimham emphasized the need for a “more balanced approach” to funding R&D, implying that other countries should pay more for U.S.-produced pharmaceuticals. He pointed to Trump’s deal with the 17 drug companies as a “reasonable” solution.

Early signs, however, suggest drug prices have not come down. A January report from drug price research firm 46brooklyn found drug companies, including 16 firms with which Trump made deals since September, raised drug prices for at least some of their drugs in the first two weeks of 2026. The median increase of the 872 brand-name drugs with hiked prices was about 4%, the same rate as the year before.

Reuters similarly reported earlier this month, citing data from 3 Axis Advisors, that those 17 drug companies had raised the prices of 350 medications. Public health experts attributed the rise to the behind-the-scenes nature of the deals between drug companies and insurers.

“These deals are being announced as transformative when, in fact, they really just nibble around the margins in terms of what is really driving high prices for prescription drugs in the U.S.,” Dr. Benjamin Rome, a health policy researcher at Brigham and Women’s Hospital in Boston, told the outlet.

The Department of Health and Human Services did not immediately respond to Fortune’s request for comment.



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