Trump picks Kevin Warsh for Fed chair, but key Republican vows to block him over Powell investigation
Kevin Warsh, former governor of the US Federal Reserve, walks to lunch during the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, US, on Wednesday, July 9, 2025. The annual event has been a historic breeding ground for media deals and is usually a forum for tech and media elites to discuss the future of their industry. (Photographer: David Paul Morris/Bloomberg via Getty Images)
(WASHINGTON) — President Donald Trump announced conservative policymaker and former Fed governor Kevin Warsh as his pick to be the new Federal Reserve chairman.
In a post on Truth Social early Friday morning, Trump said that he has “known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best.”
“He will never let you down,” Trump continued.
Warsh previously served on the Fed’s board of governors from 2006 to 2011. He was a top adviser to then-Fed chairman Ben Bernanke during the 2008 financial crisis, serving as a liaison between the central bank and Wall Street. During that time, he was an inflation “hawk” — skeptical of the Fed’s ultra-low interest rate policy. But in more recent interviews, Warsh has heaped praise on Trump and called for “regime change” at the Fed, while also supporting lower interest rates.
On Thursday, Trump said that he had “chosen a very good person” while walking the carpet at the Kennedy Center ahead of the premiere of the documentary about first lady Melania Trump.
Trump said his pick to replace current Chairman Jerome Powell is an “outstanding person and a person that won’t be too surprising to people.”
“A lot of people think that this is somebody that could have been there a few years ago,” Trump went on. “It’s going to be somebody that is very respected, somebody that’s known to everybody in the financial world. And I think it’s going to be a very good choice.”
Trump has repeatedly attacked Powell over the past year for his cautious approach to lowering interest rates.
Powell’s term as chairman expires in May.
Earlier this month, in an extraordinary escalation of the months-long attack on the independence of the Federal Reserve, Powell announced that federal prosecutors had launched a criminal investigation related to a multi-year renovation of the Fed’s headquarters in Washington, D.C.
Earlier this week, at its first meeting since news of the investigation surfaced, the Federal Reserve voted to hold interest rates steady.
Trump said that the Fed governors who voted earlier this week to pause interest rates will change their minds once there is a new chair.
“If they respect the Fed chairman, they’ll be with us all the way,” Trump said. “They want to see the country be great.”
The Minnesota National Guard sits at the Whipple Federal Building in Minneapolis, United States, on January 26, 2025. (Arthur Maiorella/Anadolu via Getty Images)
(WASHINGTON) — The Pentagon’s Northern Command over the weekend stood down more than 1,500 federal troops placed on alert for potential deployment to Minneapolis, according to two U.S. officials with direct knowledge of the situation.
ABC News first reported that roughly 1,500 active duty soldiers from the 11th Airborne Division at Joint Base Elmendorf-Richardson in Alaska had been ordered to prepare for a possible mission to the Twin Cities in Minnesota.
Additional units across the country, including some 200 Texas National Guard troops, also had been directed to make preparations.
No specific mission was ever outlined, and placing units on alert is a relatively routine step when commanders anticipate a potential presidential order, according to officials familiar with the planning. The New York Times was the first to report that units were being taken off high alert.
The prepare-to-deploy orders came as President Donald Trump, threatened to use the Insurrection Act of 1807, a rarely used statute that grants a president authority to deploy federal troops for domestic law enforcement missions under limited circumstances.
The law has been invoked most frequently during the Civil Rights era, particularly to enforce court-ordered desegregation and quell large-scale unrest.
The order to stand down comes as the Trump administration has signaled a potential de-escalation in Minneapolis following the fatal shootings of two people involving federal officers.
On Monday, Department of Homeland Security Secretary Kristi Noem said that every officer in Minneapolis will start to wear body cameras.
“As funding is available, the body camera program will be expanded nationwide,” Noem said in a statement. “We will rapidly acquire and deploy body cameras to DHS law enforcement across the country.”
The 11th Airborne Division is the Pentagon’s primary ground combat force tailored for warfare in extreme cold, a niche capability the Army views as increasingly central to modern conflict.
The unit is not built with civilian law enforcement in mind, and such a deployment would’ve likely been seen as a major escalation of the federal government’s role in the Minneapolis protests.
The 11th Airborne Division plays a significant role in the U.S. military’s posture in the Pacific, regularly training alongside allied forces as part of efforts to deter China. Built for speed and flexibility, the division focuses on airborne operations that enable units to parachute into contested terrain, giving commanders an early foothold in a conflict.
Meanwhile, Minnesota Democratic Gov. Tim Walz has ordered the state’s National Guard into Minneapolis to secure the Whipple Federal Building, a massive federal complex that houses a courtroom, a detention center, and offices for multiple agencies, including Homeland Security.
Guard troops have been outfitted in bright reflective vests to distinguish them from federal agents who often dress similar to the military.
(WASHINGTON) — Treasury Secretary Scott Bessent said Sunday that there is no formal proposal from the White House to defund the Affordable Care Act and instead send money directly to Americans, despite a social media post from President Donald Trump on Saturday promoting such a plan.
“The president has also come forward with a new proposal overnight, saying it’s time, instead, to do away with Obamacare and said to have the money go directly to the people. Do you have a formal proposal to do that?” ABC News’ “This Week” anchor George Stephanopoulos.
“We don’t have a formal proposal,” Bessent said.
But pressed by Stephanopoulos about whether such a plan would be proposed to the Senate, Bessent said that the administration was not proposing it “right now.”
Bessent also hedged when asked about Trump’s push to end the Senate’s filibuster.
“Is the best way to end the shutdown right now to end the filibuster?” Stephanopolous asked.
“The best way is for five Democratic senators to come across the aisle,” Bessent said.
(WASHINGTON) — When President Donald Trump and Defense officials revealed on Sept. 2 that the U.S. military killed 11 alleged drug smugglers on a boat in the Caribbean Sea, they touted it as a success in their war against South American cartels.
Their initial comments were met with scrutiny due to the lack of details they provided. More questions arose months later after it was reported that survivors from the attack were killed in a subsequent strike. The White House later confirmed on Monday that there was more than one strike on the boat.
Trump first announced the strike on his social media site as a “kinetic strike against positively identified Tren de Aragua Narcoterrorists in the SOUTHCOM area of responsibility.”
The post included a video of the strike that showed only one hit.
Trump alleged that the boat was under the control of Venezuelan President Nicolas Maduro. Maduro denied the allegations and criticized the U.S. for the attack.
Trump said a day later that a “massive” amount of drugs was on the boat, but provided little detail.
“It was massive amounts of drugs coming into our country to kill a lot of people. And, everybody fully understands that fact. You see it, you see the bags of drugs all over the boat, and they were hit,” Trump told reporters at the White House on Sept. 3. “When they watch that tape, they’re going to say, ‘Let’s not do this.'”
That same day, Defense Secretary Pete Hegseth also touted the strike during a “Fox & Friends” interview and refuted a Maduro spokesperson’s suggestion that the video was AI-generated.
“That was definitely not artificial intelligence. I watched it live,” he said. “We knew exactly who was in that boat. We knew exactly what they were doing, and we knew exactly who they represented.”
The administration would go on to report 20 more strikes against boats in the Caribbean and eastern Pacific Ocean, killing 83 people.
Hegseth spoke about the U.S. operation on Oct. 23 at a White House event on fighting drug cartels, arguing that suspects on the boats would be treated “like foreign terrorist organizations on the offense.”
“So the Department of War is not going to degrade, or just simply arrest. We’re going to defeat and destroy these terrorist organizations to defend the homeland on behalf of the American people,” he said.
His remarks came a week after survivors were reported following a strike on a boat in the Caribbean. The survivors eventually were released to their home countries of Colombia and Ecuador, which prevented them from protesting their detention in a U.S. court.
When asked by ABC News’ Mary Bruce about how survivors would be treated in the future, Hegseth responded, “We’ve got protocol of how we’ll handle it,” but did not go into detail.
At the same event, Trump told reporters that he didn’t plan to ask Congress for authority or declare war against the cartels, and instead he declared bluntly, “We’re just going to kill people that are bringing drugs into our country.”
However, new questions arose about the legality of the attacks after a Nov. 28 Washington Post report that said the first strike on Sept. 2 initially left two survivors clinging to the wreckage and that before the strike Hegseth had given spoken orders to kill everyone on board.
The Post report, which cited two “two people with direct knowledge of the operation,” alleged that Adm. Mitch Bradley, then-head of the Joint Special Operations Command, ordered a second strike in order to comply with Hegseth’s initial orders and to ensure the survivors couldn’t call on other suspected traffickers to retrieve them and their cargo.
Members of Congress from both parties had expressed concerns with the drug cartel operation, but in the days following the Washington Post report, Republican and Democratic leaders on both the House and Senate armed services committees put out joint statements saying they were looking into the incident.
Hegseth pushed back against the Post’s report saying in an X post that the strikes were legal.
ABC News has confirmed that survivors from the initial strike were killed as a result.
Trump told reporters Sunday that he did not know about the details about the Washington Post’s report and defended Hegeseth.
“He said he did not say that, and I believe him,” Trump said when asked about the report and Hegseth’s alleged order.
Trump added that he wouldn’t have wanted a second strike.
“I wouldn’t have wanted that. Not a second strike. The first strike was very lethal. It was fine, and if there were two people around, but Pete said that didn’t happen. I have great confidence,” he said.
On Monday, White House press secretary Karoline Leavitt clarified that Adm. Frank “Mitch” Bradley gave the order for the second strike, but did not give any more details.
The next day, Hegseth doubled down on the administration’s efforts to attack alleged drug boats.
“We’ve only just begun striking narco-boats and putting narcoterrorists at the bottom of the ocean because they’ve been poisoning the American people,” he said at a Cabinet meeting on Tuesday.
Hegseth also clarified his earlier comments about watching the attack live.
“As you can imagine, the Department of War, we got a lot of things to do. So I didn’t stick around for the hour and two hours, whatever, where all the sensitive site exploitation digitally occurs,” he said. “So I moved on to my next meeting. A couple of hours later, I learned that the commander had made the — which he had the complete authority to do.”
“Admiral Bradley made the correct decision to ultimately sink the boat and eliminate the threat. He sunk the boat, sunk the boat, and eliminated the threat. And it was the right call. We have his back,” Hegseth added.
Hegseth said that he did not see any survivors while he watched the video.
“I did not personally see survivors, but I stand — because that thing was on fire. It was exploded and fire and smoke, you can’t see anything. You got digital, there’s — this is called the ‘fog of war.'”
