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 MORNING REPORT

 MORNING REPORT

 

Wednesday, November 11 | By Jared Gans

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In today's issue:

▪ Bowser tees up DC mayor’s race 

▪ Ukraine agrees to ‘core terms’ of deal 

▪ Hegseth’s latest target: the Scouts 

▪ MTG’s resignation and ‘America First’ 

© The Associated Press | Manuel Balce Ceneta (left), Evan Vucci (center and right)

A Fed nominee for Christmas? 

President Trump’s pick for the next Federal Reserve chief could be revealed just in time for Christmas, with National Economic Council Director Kevin Hassett the reported frontrunner heading into the holidays.

Treasury Secretary Scott Bessent told CNBC on Tuesday there’s a “very good chance” the president will announce his nominee to succeed Federal Reserve Chair Jerome Powell next month. 

“I think things are moving along very well,” Bessent said Tuesday.  

The secretary’s comments come as Bloomberg News reports that Hassett is seen by Trump’s advisers and allies as the leader of the pack to replace Powell, whose term expires in May. 

▪ Bloomberg News: Hassett Emerges as Frontrunner in Fed Chair Audition 

▪ The Hill: 5 people Trump could pick to replace Powell at Federal Reserve 

While Trump himself nominated Powell during his first term in the White House, their relationship has curdled. The president frequently criticizes Powell — calling him “incompetent” and “too slow” — because of the central bank’s cautious approach to lowering interest rates. 

In September, Trump posted a meme of him telling Powell, “You’re Fired!” Last week, the president said Bessent was holding him back from firing the Fed chair, a move that’s both legally dubious and would risk tanking financial markets.  

Whether the president attempts to axe Powell before his term ends, Bessent on Tuesday hinted that the next chair will be expected to reorient the central bank to be less prominent. 

“I think we’ve got to kind of simplify things,” Bessent added on CNBC. “I think it’s time for the Fed just to move back into the background, like it used to do. Calm things down and work for the American people.” 

▪ The Hill: Trump: ‘People are holding me back’ from firing Jerome Powell 

▪ Time: Who Does Trump Want to Be the Next Fed Chair? 

Beyond Hassett, Trump confirmed in September that two additional men are considered finalists for his nomination. Outlets then reported last month that five people, including Fed Vice Chair of Supervision Michelle Bowman and BlackRock Chief Investment Officer Rick Rieder, were on the shortlist. 

But let’s do a quick dive into the background on the three candidates Trump confirmed himself, with reporting from The Hill’s Sylvan Lane.  

Kevin Hassett 

During the president’s first term, Hassett served as chair of the White House Council of Economic Advisers and essentially acted as Trump’s top economist. Now, he has been primarily involved in crafting Trump’s sweeping tariffs and modeling his domestic policy agenda. He’s also a fierce defender of the president and his policies, frequently going to bat for him on TV — including on Fed-related issues, Lane has reported. 

“There’s absolutely no excuse, other than partisanship, for the Fed not to cut rates,” Hassett said during a June interview with Fox Business. 

With Hassett’s track record under both Trump terms and his eternally optimistic demeanor while having the president’s back, it’s no wonder he’s high on Trump’s list. 

Kevin Warsh 

A former Fed board member, Morgan Stanley banker and economic adviser under former President George W. Bush, Warsh has been in the running for a top economic position under Trump since the president’s first term. 

Warsh was among Trump’s finalists to replace former Fed Chair Janet Yellen in 2018 but lost out to Powell. After the 2024 election, he was also among several rumored candidates for the Treasury secretary role, which ultimately went to Bessent. 

Like Hassett, Warsh has also proven willing to call out the current central bank’s regime. 

“Independence is reflexively declared, all too often in my view, when the Fed is criticized,” Warsh said in an April speech to a conference in Washington, D.C. 

Christopher Waller 

Trump nominated Waller to the central bank's board of governors in 2020, after he previously spent decades as an economics professor and the Fed research director. 

Waller has largely been in sync with Powell on interest rates, which could be a mark against him in Trump’s eyes. Last month, the Federal Reserve cut rates — by 0.25 percentage points — for the second consecutive month. 

▪ Business Insider: Trump could make a decision on a new Fed chair 'before Christmas.' See who's on the short list 

Waller has defended both the Fed’s independence and Trump’s right to attack it over interest rates decisions.  

“If the president wants to complain about it, he is free to do so just like everybody else,” Waller said in an interview with Bloomberg News after Trump won the 2024 election. “That doesn’t mean I have to listen or adjust policy to that, but he is entitled to every damn opinion he wants.” 

Programming note: Morning Report will be off for Thanksgiving and returns on Monday. Click here to sign up to get The Hill's Tipsheet on Thursday, Friday, Saturday and Sunday. 

Smart Take 
with Blake Burman

Pressure against Venezuela continues. Chairman of the Joint Chiefs of Staff General Dan Cain visited Trinidad and Tobago. It’s nation of roughly 1.5 million people, but just miles away from Venezuela. Today, Secretary of War Pete Hegseth is scheduled to be in the Dominican Republic. 

The last U.S. Ambassador to Venezuela, James Story, gave me some insight on what it's like to speak with Venezuelan dictator Nicolas Maduro. “I’ve spoken to the man directly. He has no intention of leaving,” Story told me. “But I'll tell you, he is fazed, regardless of the show he's putting on television right now, he's very much fazed by what's happening,” Story added. 

With all the U.S. military maneuvering and power, will the next step involve a phone call? Story says if there’s a conversation between Trump and Maduro, it should be framed around how Maduro leaves the country.   

 

Burman hosts "The Hill" weeknights, 6p/5c on NewsNation.

3 Things to Know Today

 
  1. The Centers for Medicare and Medicaid Services announced lower prices on 15 costly prescription drugs under Medicare, including Ozempic and Wegovy. 
  2. The Centers for Disease Control and Prevention quietly appointed former Louisiana health official Dr. Ralph Abraham, a vaccine skeptic, as the agency’s top deputy. 
  3. The Trump administration ordered immigration officers to review all refugees admitted into the country under former President Biden, threatening to revoke protections for those who have fled danger and persecution. 

LEADING THE DAY

© The Associated Press | Manuel Balce Ceneta 

BOWSER TEES UP DC MAYOR BATTLE: Washington, D.C., Mayor Muriel Bowser (D) announced Tuesday she won’t seek reelection next year after three terms leading the nation's capital. 

“It has been the honor of my life to be your mayor. But today, with a grateful heart, I am announcing that I will not seek a fourth term,” Bowser said in a video on the social platform X. 

Her exit sets up a campaign for who will run the district’s government alongside the Trump administration, which has presented new challenges for the city after the president deployed the National Guard there earlier this year in response to what Trump characterized as out-of-control levels of crime, The Hill’s Brandon Conradis reports. 

▪ The Washington Post: D.C. Mayor Bowser will not run for fourth term 

As of now, the race to succeed Bowser is wide open. D.C. Council members Kenyan McDuffie (I) and Janeese Lewis George (D), a democratic socialist, have each said they are considering running. Axios last month floated Metro general manager Randy Clarke for the job.  

Bowser declined to say in an interview with The Washington Post whether she would endorse a candidate. 

Mayors in the District do not have term limits. Bowser was the first Black woman to ever be elected to three terms, and her time in office has run parallel to major events such as the District protests after George Floyd’s murder in 2020 and the attack on the U.S. Capitol on Jan. 6, 2021. 

UKRAINE AGREES TO ‘CORE TERMS’: Ukraine has reportedly agreed to a trimmed-down version of Trump’s 28-point peace proposal following meetings with U.S. and European officials over the weekend.  

According to the Financial Times, the new 19-point plan has removed the stickiest issues between Russia and Ukraine, such as land concessions and security guarantees, which will be worked out by Trump and Ukrainian President Volodymyr Zelensky.  

▪ Financial Times: US and Ukraine draft new 19-point peace plan but defer biggest decisions 

While the Trump administration is touting major progress in the peace talks, it’s unclear that either side has made any significant new concessions.  

“The original 28-Point Peace Plan, which was drafted by the United States, has been fine-tuned, with additional input from both sides, and there are only a few remaining points of disagreement,” Trump said Tuesday afternoon on Truth Social.  

He said special envoy Steve Witkoff would continue negotiations with Russian President Vladimir Putin, while Army Secretary Dan Driscoll would engage with the Ukrainians. Trump later told reporters on Air Force One that Witkoff and son-in-law Jared Kushner might travel to Moscow for negotiations next week. 

“I look forward to hopefully meeting with President Zelenskyy and President Putin soon, but ONLY when the deal to end this War is FINAL or, in its final stages,” Trump added.  

Ukrainian officials indicated they expected a meeting between Trump and Zelensky to discuss the remaining issues, after reaching a “common understanding on the core terms of the agreement discussed in Geneva.”  

Russian Foreign Minister Sergey Lavrov expressed skepticism on Tuesday about any deal that “erased … key understandings” between Trump and Putin at their summit in Alaska over the summer. 

The Hill’s Alexander Bolton reports that some Republican lawmakers have deep misgivings about Trump’s emerging peace deal. 

FBI PROBING DEMS OVER VIDEO: The backlash against the six Democratic lawmakers who recently filmed a video telling military members they are not obligated to follow illegal orders intensified on Tuesday when it was revealed that the FBI has launched an investigation into the matter. 

The Hill’s Rebecca Beitsch reports that several lawmakers who appeared in the video noted they had been contacted by the bureau.  

“Last night, the FBI’s Counterterrorism Division appeared to open an inquiry into me in response to a video he did not like,” Sen. Elissa Slotkin (D-Mich.), a former CIA officer, wrote on X. “The President directing the FBI to target us is exactly why we made this video in the first place.” 

Sen. Mark Kelly (D-Ariz.) and Reps. Jason Crow (D-Colo.), Chris Deluzio (D-Pa.), Chrissy Houlahan (D-Pa.) and Maggie Goodlander (D-N.H.) were the other lawmakers who appeared in the video. The four House members said they were contacted by the FBI through the lower chamber’s sergeant at arms.  

The investigation comes after the Pentagon said Monday that it has received “serious allegations of misconduct” against Kelly. Defense Secretary Pete Hegseth on Tuesday ordered the Navy secretary to review the allegations by Dec. 10.  

Trump previously called the group “traitors” and said the video amounted to “SEDITIOUS BEHAVIOR, punishable by DEATH!” His posts on Truth Social prompted the White House to clarify that the president did not want to see the six lawmakers killed over the video’s release, but he nonetheless later said they should be “in jail right now.” 

HEGSETH VS. SCOUTS: A reported memo from Hegseth proposes cutting ties with Scouting America — the organization formerly known as the Boy Scouts of America — because he is upset with the group for promoting diversity, equity and inclusion. 

The memo, first reported by NPR and not yet submitted to Congress, accuses Scouting America of attacking boy-friendly spaces, for being “genderless” and for fostering “gender confusion.” The Hill’s Ellen Mitchell reports the Pentagon said in a statement that the department “will not comment on leaked documents that we cannot authenticate and that may be pre-decisional.” 

Hegseth's proposal calls for the Department of Defense to cancel medical and logistical aid to the National Jamboree, an event where up to 20,000 Scouts gather at a remote site in West Virginia about every four years. It also aims to prohibit Scout troops from meeting at military installations in the U.S. and abroad. The U.S. military has provided support to the Scouts since 1937. 

▪ New York Magazine: Pete Hegseth Has Found His Real Enemy: The Scouts 

Scouting America said in a statement that it “is and has always been a nonpartisan organization” and that its values have not changed. 

“The Scouting movement has had a strong relationship with our nation’s military going back more than a century,” the group said. “Over more than a century, we’ve worked constructively with every U.S. presidential administration – Republican and Democrat – focusing on our common goal of building future leaders grounded in integrity, responsibility, and community service.” 

 

WHEN & WHERE

  • The president is at his Mar-a-Lago resort in Palm Beach, Fla., until Sunday. 
  • The Senate and House are out. 

ZOOM IN

© The Associated Press | Julia Demaree Nikhinson

MORE MTG RESIGNATION FALLOUT: Rep. Marjorie Taylor Greene’s (R-Ga.) surprise decision to resign from Congress in January is prompting questions about the future of the “America First” mantra under the MAGA movement. 

Greene, who has said she prefers the mantra of “America Only,” clashed with the Trump administration over foreign policy issues such as bailing out Argentina, sending military aid to Ukraine and continuing to arm Israel even as the civilian casualties skyrocketed in Gaza. 

She was also outspoken in pushing the administration to release all files tied to the late convicted sex offender Jeffrey Epstein, which seemed to put Trump over the edge in pulling his support for the former ally and later calling her a “raving lunatic” and a “traitor.” 

▪ BBC: How Greene went from Maga loyalist to quitting Congress 

The Hill’s Mike Lillis, Emily Brooks and Sudiksha Kochi report that the Georgia Republican’s planned exit means Congress will have one fewer Republican holding Trump’s feet to the fire when it comes to foreign policy endeavors — a role that will be left largely to Rep. Thomas Massie (R-Ky.) and Sen. Rand Paul (R-Ky.), two isolationists who have criticized the president over U.S. ventures abroad. 

Paul himself warned this week that Trump risks alienating his MAGA loyalists in eyeing aggressive foreign policy moves. 

“If he invades Venezuela or if he approves significant arms sales [to Ukraine] … the rift with Marjorie Greene will pale in comparison to what happens to his movement,” Paul said in an interview with Reason magazine. “If he invades Venezuela or gives more money to Ukraine, his movement will dissolve." 

Other Republicans, however, downplayed the impact of Greene’s departure on the foreign policy debate. 

“I never saw her as a big force in anything, whether it be domestic or foreign policy,” Rep. Mike Haridopolos (R-Fla.) said of Greene on Tuesday. “As far as foreign policy, the person I look to is the president and, of course, my longtime friend [Secretary of State] Marco Rubio.” 

ELSEWHERE

© The Associated Press | George Walker IV

‘BE CLASSY’ HOLIDAY TRAVELERS: One of the busiest travel periods of the year is underway with Thanksgiving approaching on Thursday. 

In fact, Chicago’s O’Hare International Airport said it is expecting this Thanksgiving week to be the airport’s busiest in history, with more than 1.63 million travelers projected to pass through it during the seven-day period. That would mark a nearly 10 percent increase compared with last year. 

Beyond the Windy City, the Federal Aviation Administration (FAA) said it is anticipating the industry’s busiest Thanksgiving in 15 years, with more than 360,000 flights scheduled between this past Monday and next Tuesday. 

Air travel has been top of mind for many Americans since the record-long government shutdown disrupted the industry. At least 40 airports had their flights reduced because of increased air traffic controller callouts and retirements, which prompted safety concerns. 

▪ The Associated Press: Thanksgiving travel forecasts point to typically busy airports, roads and trains 

▪ CBS News: Maps show where storms threaten Thanksgiving travel across the U.S. 

With all of this in mind amid this week’s busy travel period, Transportation Secretary Sean Duffy is urging passengers to be courteous and say “please” and “thank you” to pilots and flight attendants. 

Oh, and one more thing from Duffy: Maybe think about what you wear. 

“I think — again, I call this — just maybe dressing with some respect, you know, whether it’s a pair of jeans and a decent shirt,” Duffy said during a Monday press conference. “Let’s try not to wear slippers and pajamas as we come to the airport. I think that’s positive.” 

OPINION

  • The US needs a coherent F-35 policy — now, Elizabeth Samson writes in The Hill. 
  • If the final peace plan is anything like the 28-point draft, Kyiv is in deep trouble, William A. Galston writes in the Wall Street Journal. 

THE CLOSER

© The Associated Press | Julia Demaree Nikhinson

And finally … Just when you thought former President Biden was safe from a dig courtesy of his successor amid a feel-good, ceremonial event — think again. 

During a White House ceremony for the long-held presidential tradition of pardoning turkeys before Thanksgiving — Gobble and Waddle were saved this year, in case you were wondering — Trump said the former president’s own turkey pardons in 2024 are "totally invalid" because of his use of an autopen. The president referenced a “thorough and very rigorous investigation.” 

In September, the White House unveiled a “Presidential Walk of Fame” just outside the Oval Office featuring portraits of U.S. presidents, with the exception of Biden, who was instead honored with a framed photo of an autopen writing his signature. 

We don’t typically dole out legal advice, but Peach and Blossom may want to lawyer up. 

 

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