The briefing for Thursday, May 14.

The Senate confirmed Kevin Warsh as the new Federal Reserve chairman on Wednesday, replacing Jerome Powell. The 56-year-old former Fed governor takes over a divided central bank grappling with economic fallout from the Iran war, which has driven up energy prices and complicated efforts to bring inflation down to the Fed's 2% target. President Trump had repeatedly attacked Powell for refusing the deep rate cuts the president believes will boost the economy.

Warsh's confirmation was delayed by a Justice Department investigation into the Fed widely seen as an attempt to oust Powell. Senator Thom Tillis, a North Carolina Republican, had opposed Warsh until the DOJ dropped the investigation last month. In an unusual move, Powell said he would remain on the Fed's governing board indefinitely after Warsh became chair, citing Trump's 'unprecedented' attacks on the central bank's independence. Powell's term as a Fed governor doesn't expire until 2028, which could create tension with the new chairman.

Trump has demanded lower interest rates despite inflation concerns, while Warsh has recently aligned himself with the president's views that artificial intelligence and other technologies can boost growth without igniting inflation. Senate Democrats condemned Warsh for not fully disclosing details of his wealth, which amounts to at least $100 million, including stakes in Polymarket and SpaceX. He promised to sell such assets within 90 days of being sworn in.

Senate Republicans again blocked Democratic legislation to halt President Trump's war with Iran, but the vote revealed growing GOP unease about the conflict. The measure failed 49-50, with Republican Senator Lisa Murkowski of Alaska voting against the war for the first time since it began in late February. She joined Senators Susan Collins of Maine and Rand Paul of Kentucky, while Democrat John Fetterman of Pennsylvania was the only member of his party to oppose the resolution.

The White House has asserted it doesn't need congressional authorization for the war, claiming it has 'terminated' hostilities because the U.S. entered a ceasefire. This position has created tension with Congress, as the War Powers Resolution of 1973 requires presidents to obtain authorization after 60 days of conflict. Defense Secretary Pete Hegseth told lawmakers the administration believes it has 'all the authorities necessary' to restart attacks without congressional approval, a claim Murkowski challenged by pointing to deployed troops and warships.

Republican leadership continues backing the war, arguing the Strait of Hormuz blockage pressures Iran's economy more than America's. But Republicans are growing uneasy about high gas prices as November elections approach. Democrats plan to continue forcing weekly votes on war powers resolutions and will seek limitations on Trump during debate over annual military legislation. Senator Tim Kaine of Virginia, who spearheaded the Democratic effort, said he believes there will soon be a day when the Senate tells the president to stop the war.

Russia test-fired its new Sarmat intercontinental ballistic missile on Tuesday, with President Vladimir Putin declaring it the world's most powerful such weapon. Putin announced the nuclear-armed missile would enter combat service by year's end, replacing the aging Soviet-built Voyevoda. The successful test came days after Putin claimed the fighting in Ukraine is nearing an end, and marks a significant milestone after years of development delays and a reported massive explosion during a 2024 test.

Putin said the Sarmat's combined warhead power is more than four times higher than any Western counterpart. The missile is capable of suborbital flight with a range exceeding 35,000 kilometers and can penetrate any prospective missile defenses, according to the Russian leader. Designated 'Satan II' in the West, the Sarmat is meant to replace about 40 Soviet-built Voyevoda missiles and had only one known successful test before Tuesday's launch.

The test is part of Putin's broader effort since 2000 to modernize Russia's nuclear triad with new land-based missiles, nuclear submarines, and upgraded bombers. The last remaining nuclear arms pact between Russia and the U.S. expired in February, leaving no caps on the world's two largest atomic arsenals for the first time in over half a century. Putin also announced Russia is in 'final stages' of developing the nuclear-armed Poseidon underwater drone and Burevestnik cruise missile, describing these weapons as responses to U.S. missile defense systems.

U.S. wholesale inflation jumped 6% in April compared to a year earlier, the highest annual increase since December 2022, according to Labor Department data released Wednesday. Producer prices rose 1.4% from March to April, the largest monthly gain since March 2022, as the Iran war pushed energy costs sharply higher and pressured companies to pass costs to consumers. The figures significantly exceeded economist forecasts.

Energy prices climbed 7.8% from March to April and 22.7% year-over-year. Gasoline soared 15.6% in the single month of April, while diesel fuel jumped 12.6%. Even excluding volatile food and energy costs, core producer prices rose 1% from March and 5.2% from April 2025. The wholesale price index offers an early look at where consumer inflation might head, as some components flow into the Fed's preferred inflation gauge.

The surge comes as Americans already face frustration over high living costs. On Tuesday, the Labor Department reported consumer prices jumped 3.8% in April from a year earlier, the biggest increase in over three years. Affordability is expected to be a key issue when voters go to the polls November 3 to determine whether President Trump's Republican Party maintains control of Congress.

The South Carolina Supreme Court unanimously overturned Alex Murdaugh's 2023 murder convictions on Wednesday and ordered a new trial for the disgraced lawyer. Murdaugh had been serving two life sentences for killing his wife Maggie and son Paul in June 2021. The 56-year-old is also serving an additional 40 years for federal financial crimes. His legal troubles have captivated global audiences and inspired documentaries, podcasts and book deals.

The 5-0 ruling found that Murdaugh deserved a new trial because Colleton County Clerk of Court Rebecca Hill unfairly biased the jury against him. The justices wrote that while both prosecution and defense skillfully presented their cases and the trial court 'deftly presided' over the complicated matter, Hill 'placed her fingers on the scales of justice, thereby denying Murdaugh his right to a fair trial by an impartial jury.'

The court cited multiple comments Hill allegedly made to jurors during the trial. One juror wrote in an affidavit that Hill told them to 'watch [Murdaugh] closely,' which influenced her guilty verdict because she believed the clerk was implying he was guilty. Jurors also testified that Hill told them 'not to be fooled' by defense evidence and said during deliberations 'this shouldn't take us long.' The original jury had found Murdaugh guilty of shooting his wife and son at close range near the family's dog kennels after a six-week trial.

The Trump administration announced Wednesday it is imposing a nationwide six-month freeze on new Medicare enrollments by hospice and home health agencies. The moratorium temporarily stops all new providers in these categories from signing up for reimbursement from Medicare. Vice President JD Vance announced the move as part of his anti-fraud task force's efforts, along with a $1.3 billion deferral in California Medicaid payments.

CMS Administrator Dr. Mehmet Oz said the administration had identified questionable expenditures and anomalies, such as higher growth rates in California's home care program compared to other states. However, Governor Gavin Newsom's office disputed the claims, saying the state's program grew because California is 'keeping more people OUT of far more expensive nursing homes.' The freeze will allow existing providers to continue operating while CMS intensifies investigations and deploys advanced data analytics to identify fraud.

The moves come as Americans have raised concerns about rising health costs and barriers to access from government actions. New Medicaid work requirements are expected to strain hospitals and result in millions losing coverage. Such freezes are not unprecedented—President Clinton's administration also imposed a temporary moratorium on home health agencies. Health policy experts say brief moratoriums give administrations time to crack down on fraud while preventing new fraudulent entities from entering the system.