Thune’s remarks highlight brewing battle over Fed chair

Morning Report is The Hill’s a.m. newsletter. Subscribe here.

Federal Reserve faceoff

Iran war powers votes

Temperature rising on AI debate

A showdown over the leadership of the Federal Reserve is ramping up ahead of a confirmation hearing for President Trump’s nominee for chair set for next week.

Senate Majority Leader John Thune (R-S.D.) on Wednesday urged the administration to “wrap up” its investigation of Fed Chair Jerome Powell, saying “it’s in everyone’s best interest” for it to end.

The comments point to the impossible road for Kevin Warsh, a former Fed board member who Trump chose as his nominee for chair in January, as long as Sen. Thom Tillis (R-N.C.) maintains his hold on the nomination.

Tillis has vowed to hold up the confirmation process until the Department of Justice (DOJ) end its probe into the Fed and Powell related to his oversight of renovations at the Fed’s headquarters in Washington, D.C., and testimony he gave before Congress on the project.

A federal judge quashed subpoenas issued in March.

Thune’s remarks followed a surprise visit that prosecutors from the U.S. attorney’s office in Washington made to the Fed’s headquarters Tuesday. They were turned away, as they hadn’t requested permission to visit in advance and for safety protocols.

Tillis, who is not running for reelection this year with his term expiring, railed against the investigation again on Wednesday after the incident, calling it “bogus, ill-timed, ill-informed,” The Associated Press reported.

In an interview with NBC News, the senator doubled down on his hold, saying he would vote for Warsh “simultaneously with the conclusion of that statement [ending the investigation] coming out of the DOJ, and not a day before, and not for the remaining … 264 days in my tenure in the U.S. Senate.”

“Now some people can say, ‘OK, Thom, you made your point. Jay Powell’s term expires as chair in May, so why not go ahead and fill it?’ Because I don’t want to reward bad behavior,” he added.

But Trump told Fox Business Network’s Maria Bartiromo the investigation needs to continue to determine if there was “incompetence, corruption or both.”

In the interview aired on Wednesday, the president also said he would fire Powell if he stayed on the Fed’s board after being replaced by Warsh as chair. Powell’s term as chair is set to come to an end in just less than one month, on May 15, but his separate term on the Fed’s board of governors runs until 2028.

If Warsh’s confirmation is held up, Powell has indicated he plans to continue to serve as chair past the end of his term in an acting capacity until the Senate confirms his successor, as permitted under federal law.

Warsh’s confirmation hearing before the Senate Banking Committee is scheduled for Tuesday.

National Economic Council Director Kevin Hassett said last week that Warsh’s nomination is “absolutely” on track.

Powell himself spoke out after receiving the subpoena in a rare public statement, alleging the investigation was designed to put pressure on him to be more aggressive in lowering interest rates.

Trump has openly called on the Fed to move more quickly in lowering rates to boost the economy, concentrating his ire on Powell.

He has previously floated firing the current Fed chair but hasn’t followed through and largely backed off the idea, which would likely cause a major market reaction.

“I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial,” Trump told Bartiromo this week.

Markets have been less sensitive to the president’s ongoing attempt to fire another Fed board member, Lisa Cook, over accusations of mortgage fraud, making him the first sitting president to attempt to do so in the agency’s history. The Federal Reserve Act only allows the president to terminate board members “for cause,” but the law doesn’t spell out what conduct is included.

A majority of the Supreme Court appeared hesitant to approve Trump’s assertion that he could fire Cook when they heard the case in January. A ruling is pending.

The court has also appeared open to allowing the president to fire heads of other agencies such as the Federal Trade Commission, but it has signaled it views the Fed in a special category of independence, granting Powell and future presidents greater protections from president actions.

▪ The Hill: Warsh discloses $130 million in assets

▪ CBS News: Why Powell, not Trump, will decide when he exits

Smart Take with Blake Burman

Maine’s state lawmakers reached a bipartisan agreement that could have far-reaching impacts. Legislators passed a measure that restricts the construction of new data centers using more than 20 megawatts of power until November 2027. Data centers power the AI revolution but have faced immense pushback in local communities nationwide.

“We want to make sure that, if and when these things get built, they’re built in a way that protects the ratepayers of the state and also our natural resources,” Maine state House Speaker Ryan Fecteau (D) told me.

“Maine has some of the highest electricity rates in the country right now. We’ve invested in solar fields that aren’t plugged in yet, so we need to make sure our grid can handle it,” State Rep. David Boyer (R) said as well.

Maine just cracked the door open for other states, who are considering similar measures. This is the issue I’m watching heading into 2028, as we are just starting to see the ramifications play out.

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

Acting Attorney General Todd Blanche said he would support Congress holding public hearings with survivors of Jeffrey Epstein. That came a week after House Oversight Chair James Comer (R-Ky.) said the committee planned to hold such hearings once its depositions concluded.

John Eastman, the lawyer who led efforts to overturn the results of the 2020 presidential election to favor Trump, has been disbarred in California. The state’s top court declined to review a lower court recommendation to strip his legal license.

Several administration officials will appear before Congress today to testify on the White House’s budget request for fiscal 2027. The request for defense spending is a whopping $1.5 trillion, but Congress is likely to stray from that number and others the administration has requested.

Speaker of the House Mike Johnson (R-La.) speaks during a news conference on Capitol Hill, March 27, 2026, in Washington. (Mariam Zuhaib, Associated Press)

FISA VOTE PUNTED: The clock is ticking for lawmakers to reauthorize the U.S.’s foreign spy powers after House Republicans pushed back a scheduled vote in the face of opposition from their own party.

Speaker Mike Johnson (R-La.) had hoped for a procedural vote to take place Wednesday afternoon to allow for a final vote in the evening on renewing Section 702 of the Foreign Intelligence Surveillance Act (FISA). The provision allows the federal government to spy on foreigners abroad without obtaining a warrant, but it can sometimes gather U.S. citizens’ communications if they speak with anyone under surveillance.

That has raised criticism from members on both sides of the aisle who argue any information collected on Americans should only be accessible with a warrant.

Johnson and House GOP leadership have pushed for a “clean” reauthorization of Section 702, but GOP holdouts are pushing for a late amendment on warrant requirements. That and other issues forced Johnson to cancel the procedural vote, a leadership source told The Hill.

House Majority Leader Steve Scalise (R-La.) said the earliest any action is taken on FISA will be today.

Section 702 is set to expire Monday.

▪ NPR: Why Congress is fighting over a key surveillance tool

▪ The Hill: GOP battles over ‘last chance’ to enact Trump’s agenda

WAR POWERS: House Democrats plan to force a vote on a war powers resolution by the end of the week to restrict Trump’s authority in the offensive against Iran, hoping enough Republicans will defect for it to pass.

Party leaders had initially planned to move the resolution for a vote only if they knew they had enough support to pass it, but the plan has changed.

Rep. Gregory Meeks (N.Y.), the top Democrat on the House Foreign Affairs Committee and the resolution’s lead sponsor, said a small group of Republicans are “on the fence” and won’t commit to whether they will vote for it. Bringing the bill to a vote is the only way to force them to decide, he said.

“I can’t wait anymore to see what they’re going to do,” Meeks said. “Let ‘em vote, and we’ll see what happens.”

His resolution is similar to past ones that have failed in the lower chamber. While it is highly unlikely to become law, passing in the House would mark a significant rebuke of Trump’s management of the Iran war.

Senate Republicans blocked a war powers measure for the fourth time Wednesday in a mostly party-line vote, with Sen. Rand Paul (R-Ky.) voting with Democrats in favor and Sen. John Fetterman (D-Pa.) voting with Republicans against it. Even as Republicans have mostly voted against these measures, some have expressed concerns about Trump’s rhetoric on the conflict and his unclear endgame.

With the two-week ceasefire between the U.S. and Iran is more than halfway over, White House press secretary Karoline Leavitt denied reports Wednesday that the administration is seeking an extension. She echoed comments from the president that a second round of talks to follow up on the unsuccessful negotiations in Islamabad, Pakistan, last weekend are being discussed.

▪ The Hill: Iranian Embassy in Tajikistan posts AI video of Jesus punching Trump

DOUBLING DOWN: Trump posted an AI-generated image of himself being embraced by Jesus on Wednesday following the backlash over his posting of an image earlier this week depicting him as a Jesus-like figure.

“The Radical Left Lunatics might not like this, but I think it is quite nice!!!” Trump wrote on Truth Social.

The image was originally posted by an account on the social platform X. It shows Jesus embracing Trump with their eyes closed and an American flag behind them.

It comes after Trump faced significant criticism even from members of his own base as conservative Christians called the first post blasphemous. That post was later deleted.

▪ The Hill: Trump’s religious mocking, Iran war distract from domestic agenda

▪ The Guardian: The AI images Trump can’t get enough of

‘TRADE OVER AID’: The Trump administration is pushing foreign countries to sign on to a joint declaration calling for “trade over aid,” rejecting the U.S.’s historic role as a main provider of humanitarian assistance.

The Washington Post reported Secretary of State Marco Rubio sent a cable Wednesday to all U.S. embassies and consular posts directing diplomats to formally call on countries around the world for their support for the declaration. It is set to be introduced at the United Nations at the end of April.

The cable states that the initiative is an opportunity to “promote America First values and create business opportunities for U.S. companies.” It comes as the administration has significantly reduced aid provided throughout the world, having dismantled the U.S. Agency for International Development.

The Post reported other major providers of international aid such as France, Germany and the United Kingdom have followed the U.S.’s lead in scaling back their efforts, but studies have suggested it could result in millions of deaths by the end of the decade.

SPECIAL ELECTION: Voters are heading to the polls today in a northern New Jersey House district to vote on who should fill Gov. Mikie Sherrill’s (D) old seat.

The race is pitting Democrat Analilia Mejia, a former campaign aide for Sen. Bernie Sanders’s (I-Vt.) 2020 presidential bid, against Republican Joe Hathaway, a city council member for Randolph, N.J.

Mejia, who pulled off an upset victory in the Democratic primary to win the nomination in February, is favored in the Democratic-leaning district. The district voted for Sherrill by close to 15 points in the gubernatorial race last year and for former Vice President Kamala Harris by about 9 points in 2024.

If Democrats win the seat, it will further narrow the GOP’s tight majority in the House.

▪ The Hill: What to know about the race

ANTITRUST RULING: A federal jury has found Live Nation, the parent company of Ticketmaster, violated antitrust laws in holding an illegal monopoly in the live entertainment industry.

After four days of deliberations, jurors ruled Wednesday in favor of dozens of state and district attorneys general who alleged Live Nation pushed out smaller competing promoters. They alleged this has disadvantaged artists and driven up costs for consumers.

Live Nation maintained artists, venues and sports teams are in charge of prices and ticketing practices.

The Trump administration, which had also been a party to the case, announced last month that it reached a settlement with Live Nation in which the company would pay $280 million in civil penalties to the states involved in the case. But more than 30 states argued the federal government didn’t secure enough concessions and continued with the case.

“The jury’s verdict is not the last word on this matter. Pending motions will determine whether the liability and damages rulings stand,” Live Nation said in a statement.

The president will participate in executive time at 8 a.m. He will receive an intelligence briefing at 11 a.m. and travel to Las Vegas, Nev., to participate in a roundtable and deliver remarks on Tax Day at 4 p.m.

The House and Senate will convene at 10 a.m.

Sam Altman, co-founder and CEO of OpenAI, testifies before a Senate committee hearing on Capitol Hill in Washington on May 8, 2025. (AJose Luis Magana, Associated Press file)

AI VIOLENCE: Two violent attacks against OpenAI CEO Sam Altman and an Indianapolis City-County Council member are raising fears that the debate around AI is turning dangerous.

Altman’s home in San Francisco was targeted last Friday when a 20-year-old Texas man threw a Molotov cocktail at the property, setting a gate on fire. The suspect then went to OpenAI’s headquarters about an hour later and threatened to burn it down.

They were arrested and charged with attempted murder and attempted arson.

That came three days after Indianapolis City-County Council member Rob Gibson said his home was shot at 13 times and a note reading “No Data Centers” was left on his doorstep. Gibson had reportedly supported a local commission’s approval of a rezoning petition for a data center project a week earlier.

The Hill’s Miranda Nazzaro reports the violent incidents are the latest examples of the country’s growing divide over AI, especially regarding its impact on the workforce, economy and environment. But while concerns about AI have mostly focused on how it could take away jobs, harm the environment and hurt industries, conservative technology leaders are arguing the rhetoric is to blame for the attack on Altman’s house.

“I think the doomers need to take a serious look at what they have helped incite and not just rely on ‘we condemn this and have said this is not the rational response,’” Sriram Krishnan, the White House’s senior policy adviser on AI, wrote Sunday on X.

But several anti-AI groups pushed back on that, saying the attacks don’t represent the movement.

▪ The Hill: Maine passes first state ban on development of large data centers

▪ The Hill: Roblox reaches kid safety agreement with Nevada

Kamil Idris, Sudan’s prime minister, attends the United Nations General Assembly (UNGA) in New York on Sept. 25, 2025. (David Dee Delgado, Bloomberg via Getty Images)

FROM KHARTOUM: Sudanese Prime Minister Kamil Idris declared victory in his country’s long-running civil war against rebel forces in a rare meeting with foreign journalists last week, including The Hill’s Laura Kelly.

“We can say, with total confidence, that we won this war,” Idris told Kelly and other journalists.

Kelly reports the meeting represents an attempt by the Sudanese Armed Forces (SAF) to exercise some amount of normalcy in the bullet-scarred Khartoum. The government retook control of the capital in a brutal battle with the Rapid Support Forces (RSF), the rebel group that has been at war for control of Sudan for the past three years.

The war is still far from over, but the SAF’s recapturing of the capital marked a significant symbolic and psychological victory. The RSF still controls a quarter of the country in the southwest.

Idris said he’s counting on Trump to follow through on his short-lived push for peace in Sudan last year.

“We still count on this expression of goodwill by President Trump, to work closely with Sudan, in order to establish durable peace inside the country,” Idris said.

The war remains the world’s largest humanitarian emergency, with half of the country’s population in need of dire assistance, Kelly notes. Many in the country have been victims of genocide, starvation, sexual violence, child conscription, displacement, racism or tribalism.

▪ Al Jazeera: What is the situation in Sudan after three years of war?

America’s strength comes from the Constitution and checks on power, Rep. Troy A. Carter Sr. (D-La.) writes in The Hill.

The women behind the whisper network that brought down Eric Swalwell, Jessica Grose writes in The New York Times.

Former Rep. George Santos arrives at court in Central Islip, N.Y., Aug. 19, 2024. (Stefan Jeremiah, Associated Press file )

And finally … It’s Thursday, which means it’s time for the weekly news quiz!

This week has placed several controversial members of Congress squarely in the spotlight, leading to the resignations of two of them and an uncertain future for two others. This quiz will cover the procedure behind expulsion and some of the controversial members of the past who have faced scandals and controversies leading to their ouster.

Be sure to email your responses to jgans@thehill.com — please add “Quiz” to your subject line. Winners who submit correct answers will receive deserved newsletter fame on Friday.

George Santos is the most recent House member to be expelled, having been kicked out of the chamber in 2023 after investigators determined he committed fraud and campaign finance violations. How many members of the lower chamber had been expelled before him?

Former Rep. Michael Myers (D-Pa.) became the only member of Congress to be expelled over their involvement in an FBI sting operation in which he and others were caught accepting bribes on camera. What was the name of that operation?

1. Operation Mousetrap

What threshold is required to expel a member from either chamber of Congress?

Many of those who were expelled from either chamber of Congress were forced out for supporting the Confederacy during the Civil War. Which former top U.S. official was among those expelled? (Hint: One of the below resigned before he could be expelled.)

2. John C. Breckinridge

More Morning Report News

Driscoll shuts down social media accounts after post celebrating Duckworth

Georgia Republican says ouster of Gen. George will have ‘chilling ...

GOP senator calls on House to impeach Boasberg after contempt hearings halted

Scarborough: US allies ‘very positive’ about US blockade of Strait of Hormuz

House Democrats file 5 impeachment articles against Hegseth

Vance tells Pope Leo to ‘be careful’, Homan says ‘leave politics alone’

A new Social Security COLA projection may be cause for ‘worry,’ senior ...

Leavitt says Interior will submit plans to begin construction of 250ft Trump ...

Iran Embassy in Tajikistan posts AI video of Jesus punching Trump in the face

Republicans battle over ‘last chance’ to enact Trump agenda

Andy Beshear makes waves in Democratic circles as Southern moderate

Cruz calls Carlson ‘deranged, leftist psycho’ following comments on ...

Report: Cellular modules from Chinese companies in smart home devices are ...

Tensions over AI reach new high after violent attacks

Bessent says order requiring banks to collect citizenship information ‘in ...

Anthropic’s Mythos puts DC, Wall Street on high alert

Thune’s remarks highlight brewing battle over Fed chair

Democrats slam, Republicans defend Vought during testy House hearing: 3 ...

The Hill Podcasts – Morning Report

© The Hill

visit website