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Alcatraz Reopening + U.S.–China Standoff
Monday Edition | May 5, 2025
![]() | Welcome back! It’s Monday, May 5th Markets are shifting as we head into a critical week. Oil is dropping, gold is climbing, and the dollar is weakening with the Fed’s rate decision set for May 7th, 2025. Overseas, Israel is preparing a new Gaza offensive after a missile strike near Tel Aviv. At home, Trump is pushing bold new proposals, including the reopening of Alcatraz and aggressive new tariff demands on China. The Anxiety Forecast? Still steady, but the pressure is stacking up. With markets on edge and key decisions ahead, this week could set the tone for a more volatile month. |

Top Stories
Trump Orders Alcatraz to Reopen as Supermax Prison
President Donald Trump has announced plans to reopen and expand Alcatraz as a high-security federal prison, targeting violent criminals and immigration detainees. He made the announcement Sunday evening on his Truth Social account after returning to the White House from a weekend in Florida, calling it a response to rising crime and “radicalized judges” who delay deportations. The prison, closed since 1963 and now a national park, would require major reconstruction and federal approval. Critics say the plan is unrealistic and politically driven.
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WHY IT MATTERS
Trump’s announcement comes as he clashes with courts over deportation rulings and calls for stricter detention policies. Reopening Alcatraz, now a protected national park, would require undoing landmark status and overcoming major legal and logistical hurdles. The proposal shows how incarceration and immigration enforcement are becoming key issues in the 2025 campaign.
Israel Calls Up Reservists Ahead of Gaza Offensive
Israel is calling up tens of thousands of reservists to expand its military campaign in Gaza, targeting new areas and Hamas infrastructure. The push, set to begin after President Trump’s visit next week, comes as pressure mounts to free the 59 remaining hostages. On Sunday, May 4th, a missile from Yemen’s Iran-backed Houthi forces struck near Israel’s Ben Gurion Airport, prompting Netanyahu to vow retaliation.
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WHY IT MATTERS
The upcoming offensive follows President Trump’s vocal support for Israel and his controversial proposal for the U.S. to take over and rebuild Gaza. With a missile strike landing near Israel’s main airport on May 4th and no hostages freed since March, tensions are rising both regionally and within Israel. As aid access remains blocked and public protests intensify, the next phase of the war could reshape Gaza’s future and test U.S. influence in the region.
Trump Pushes for ‘Fair’ Trade Deal with China Amid Tariff Talks
Speaking aboard Air Force One on May 4th, President Trump said U.S. officials are in ongoing trade talks with China, though no meeting with President Xi is scheduled. He emphasized that any deal must be “fair,” pointing to recent steep tariffs, including a 145% rate on Chinese goods, as leverage. Trump said the U.S. has “gone cold turkey” on trade with China and claimed Beijing is eager to reach an agreement.
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WHY IT MATTERS
Trump’s remarks come as tariffs begin reshaping the economy, with businesses rushing to import goods before more duties take effect in July. The president has acknowledged the impact on consumers, saying American kids might get “two dolls instead of 30” as toy prices rise. While Trump insists China will suffer more, new data shows the U.S. economy contracted last quarter, raising concerns about inflation and slower growth. A deal with China could ease pressure, but failure to reach one may deepen strain on supply chains and household budgets.
Market Watch

Why It Matters?
Oil is dropping even as OPEC+ increases production, which suggests global demand may be weaker than expected. Gold is climbing because investors are bracing for inflation and uncertainty, especially with the Fed’s rate decision coming up on May 7th. Meanwhile, the dollar’s decline points to growing market anxiety around policy direction and trade dynamics. Together, these shifts suggest a market leaning defensive. As the week unfolds, keep an eye on how central bank moves and supply trends shape the broader economic picture.
Health Watch

Summary
Respiratory illness activity remains very low nationwide, according to the latest CDC update.
Emergency department visits for COVID-19, influenza, and RSV are stable or declining across most regions.
No major spikes are expected over the next two weeks.
Snapshot
Influenza: Positivity dropped to 4.6%, and ER visits are decreasing
RSV: Holding steady at 1.6% positivity
COVID-19: Stable at 3.2%; ER visits remain very low
Wastewater data: Viral activity remains low across the board
Outlook: No major spikes forecast over the next two weeks
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Health Headlines 📰
Florida is set to ban fluoride in public drinking water, joining a growing anti-fluoridation push in GOP-led states. The move follows RFK Jr.’s claims linking fluoride to health risks, though experts warn it could undermine decades of dental health progress, particularly for children.
The CDC reports 216 child flu deaths this season, the highest since 2009. Experts blame falling vaccination rates, now at 49% compared to 64% five years ago, with totals likely to rise.
HHS launched a $500 million plan to develop universal flu and COVID-19 vaccines by 2029. Experts question the outdated methods and warn new testing rules could delay seasonal updates.
VA mental health staff say overcrowded offices under a return-to-work mandate are compromising patient privacy. Some have resigned, citing risks to care.
Why It Matters
Respiratory illness remains low across the country, with no major shifts expected this week. With fewer disruptions in care and steady trends, this is a good time to handle checkups, refill prescriptions, or reset routine health prep before summer schedules and travel pick up.
SEE YOU WEDNESDAY!
Thanks for reading. If this helped you make sense of what’s happening, consider sharing it with someone who might find it useful. I’ll be back Wednesday with more updates to help you stay informed, safe, and prepared. Subscribe below to get the next edition.