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Trump's Feud With Harvard Grows as Admin Threatens Funds, Tax- Exempt Status, Ability to Enroll International Students; Trump Says, Powell's Termination Cannot Come Fast Enough; DOJ Appeals After Judge Threatens Charges Over Deportations. Aired 7-7:30a ET

Aired April 17, 2025 - 07:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[07:00:00]

KATE BOLDUAN, CNN ANCHOR: Breaking news for you this morning, Donald Trump versus the Fed chair, the president now calling on the head of America's independent central bank to be terminated over Trump's own tariffs. What the president is saying and what this now means for Jerome Powell.

JOHN BERMAN, CNN ANCHOR: All right. Also breaking overnight billions of dollars for Head Start rural health programs, chronic disease research, all on the chopping block, the new internal White House memo laying out plans for huge cuts that will affect every American.

And much of Puerto Rico in the dark this morning as officials on the island raced to figure out what caused a sweeping blackout just days ahead of Easter weekend.

Sara Sidner is out today. I'm John Berman with Kate Bolduan. This is CNN News Central.

BOLDUAN: Yes, it is. This morning, the president is up and ready for a fight, it seems. We have that breaking news of President Trump declaring this morning on social media that the Federal Reserve Chairman Jerome Powell's, quote, termination cannot come fast enough. Clearly, the president has now heard Powell's sharp warning from yesterday of the negative impacts that Trump's trade war is going to have on the economy. More on that in just a moment.

But there is also this, the Trump administration escalating another war, if you will. It's war with some of America's leading universities, now trying to teach Harvard a lesson, fighting back against Trump comes with a cost. The oldest and wealthiest university in America has refused to comply with a list of demands and policy changes dictated by the Trump administration. And now the administration has asked the IRS to revoke Harvard's tax-exempt status. And sources tell CNN the IRS is making plans to do so.

But, wait, there's more. The Department of Homeland Security is also now threatening to revoke Harvard's ability to enroll international students if it doesn't turn over disciplinary records for some students with visas, including those involved in campus protests. DHS Secretary Kristi Noem announced on Wednesday she was terminating two grants to Harvard worth more than $2 million. But that's a drop in the bucket compared to the $2.2 billion in federal funding the administration has now frozen after Harvard's initial pushback.

Though, the university does have deep pockets with an endowment valued at $53 billion, there's a lot of money and a lot at stake here.

CNN's Alayna Treene joins us now from the White House. What's next in this fight?

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Well, Kate, this is just the beginning of, I think, a major escalation of what the Trump administration is trying to do, as they're really trying to ramp up the pressure on Harvard, but also send a message more broadly, particularly after Harvard. Of course, it defied what it's arguing, where it's hiring practices and other rules that the Trump administration said is going directly against what the president had laid out.

Now, this comes of course as our colleague, Evan Perez, and I reported that the IRS is making plans to revoke Harvard's tax-exempt status. Again, this is an extraordinary move of retaliation if it ends up going through in the near future, which we are told a decision is expected on this imminently from the IRS.

Now, this comes as the president himself has repeatedly attacked Harvard, particularly in recent days. Just yesterday, he called the university, quote, a joke that teaches hate and stupidity, and he threatened earlier this week to revoke Harvard's tax-exempt status. So, again, this is something we kind of saw the building blocks building toward for a few days now.

But a few things, just to make very clear here, is that one the IRS would be the one who would make this decision, and they are an independent agency and they are really the ones who have the authority here, not the president and not the White House. However, this reporting from Evan and I comes after the two of us also reported that, just this week, the president had named Gary Shapley. He was the one who argued that the Department of Justice was slow walking the Hunter Biden investigation. Trump had named him the acting IRS commissioner. Now, Shapley would be the one to have this authority.

Now, all to say what's looking ahead, I think to look ahead here is, one, will Harvard be the only one that potentially could face this, you know, rescission in its tax-exempt status, or would other universities potentially face this as well?

Now, Education Secretary Linda McMahon said yesterday that she believes that the administration would also want to look at this for other schools.

One thing to be clear on here as well, Kate, is that Harvard could -- if this happens, could sue and appeal this decision all the way up to the Supreme Court. And as we know with this administration, those are fights they normally welcome. They welcome it heading all the way up to the highest court in the United States. So, that could still be something, you know, down the road if this ends up being a decision that the IRS makes.

BOLDUAN: And, Alayna, I know that it just happened, but I did want to just get your, take your reaction if you've heard anything about what we reported on the breaking news off the top, is the president popping off this morning saying that Jerome Powell, the Fed chairman's termination can't come fast enough.

TREENE: Right. I do want to read you some of that post, Kate, because it was, you know, pretty spicy from the president this morning. He said, quote, the ECB, the European Central Bank, is expecting to cut interest rates for the seventh time, and yet, quote, too late, Jerome Powell of the Fed, who was always too late and wrong yesterday, issued a report, which was another and typical complete mess. He went on to say that Powell's termination, as you mentioned, cannot come fast enough.

Look, there's a lot of history between President Donald Trump and Jerome Powell going back years. But this has really been something that has been a key sticking point and a key frustration behind the scenes for the president, particularly as we're seeing, of course, so much volatility and concern about the economy in light of his tariff policies.

Now, the president has often said that he believes that the Fed should intervene and cut rates. He said it many times. He used to say this during his first term as well. So, this is kind of just another signal of the president really making clear to, you know, millions of people in his own administration that he is not in line with how Jerome Powell is running the Fed at this moment. Kate?

BOLDUAN: Yes. Having an opinion on it, one thing, saying you want to see him terminated and maybe trying to make moves to do it, even though that's not allowed, but could be challenged, all of those things, that's a totally different thing. Let's see what happens today.

Alayna, it's great to see you. Thank you so much. John?

BERMAN: All right. This morning, the Trump Administration facing punishment, potentially. The Justice Department overnight appealed after a federal judge threatened to hold the administration in criminal contempt for defying his orders. This has to do with the Alien Enemies Act that the White House used to take plane loads of alleged Venezuelan gang members to a prison in El Salvador.

The judge ordered the planes to return. They never did us District Judge James Boasberg wrote, quote, the government's actions on that day demonstrate a willful disregard for its order, sufficient for the court to conclude that probable cause exists to find the government in criminal contempt.

Let's get right to CNN's Katelyn Polantz in Washington.

This was really kind of 46 pages of wow from James Boasberg, laying out a really potentially thorny future for the administration. KATELYN POLANTZ, CNN SENIOR CRIME AND JUSTICE CORRESPONDENT: Yes, this case is not over yet, John. And it took a while for the court to get to this point. A lot of people had been talking about and wondering, is this administration willing to just disobey openly a federal court? And this is the court, the judge, Judge Boasberg, looking at the Trump administration and saying, it sure looks like they willfully, even gleefully at times, disobeyed his court orders.

This is the judge's own words, a little more from that 46-page opinion. The court does not reach such conclusion lightly or hastily. Indeed, it has given defendants ample opportunity to rectify or explain their actions. None of their responses have been satisfactory. The Constitution does not tolerate willful disobedience of judicial orders, especially by officials of a coordinate branch who have sworn an oath to uphold it. So, those are two things that the judge is saying in this opinion.

But this all dates back to what happened and the fact finding he did later on March 15th. That was the day that those three flights took off with migrants in them and went to El Salvador. On that day, Judge Boasberg was holding a hearing in real time as the flights were in the air, looking at the use of the administration's -- Trump signing the Alien Enemies Act to remove Venezuelan migrants to the Salvadoran prison.

And when Judge Boasberg was looking at that, he was saying it might not be legal, you may not be able to have taken these people out of the country without additional proceedings. And so he wanted them to basically look and say, you need to turn the planes around. They did not. And so that's where they are now. They're going to be next steps.

[07:10:00]

This is not over for Judge Boasberg.

BERMAN: No, not over at all. Katelyn Polantz, thank you so much for your reporting on this. I appreciate it. Kate?

BOLDUAN: Coming up, more on the stark warning from the Fed Chairman about the consequences of President Trump's trade war, and now the president's response today that he wants the Fed chairman fired.

And the massive proposed cuts to the Department of Health and Human Services. We're talking a slash to the budget like they have never seen before likely, and potential cuts to life-saving programs at the CDC and the NIH.

And also this, scientists say they have their strongest evidence yet there's life beyond Earth.

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[07:15:00]

BERMAN: All right. The breaking news this morning, just a short time ago, President Trump lashed out at Fed Chair Jerome Powell, saying his termination cannot come fast enough. This all comes after Powell gave his most direct warning yet about what the global trade war means for the U.S. economy and American's wallets.

Let's get right to CNN Early Start Anchor in Business Correspondent Rahel Solomon. The U.S. was already in a trade war. Now, the president's kind of in a Fed war also.

RAHEL SOLOMON, CNN BUSINESS ANCHOR AND CORRESPONDENT: Yes. I mean, this is the latest example of the Trump sort of railing against the Federal Reserve chair for what he calls the chair not lowering rates as much he would like them to.

But these comments yesterday, John, from Jay Powell, I thought, were so interesting, less because of what he said, but more so how he said it. I found his comments to be very direct, very clear, very little room for ambiguity, which isn't always the way Jay Powell speaks. He said, look, these tariffs will almost certainly mean higher inflation, at least for the rest of this year, and higher employment -- unemployment for the rest of this year, and slower growth. Very clear sort of what they're expecting in terms of these tariff announcements, if they are, in fact, to go into effect.

And he also said that the announcement and the tariffs are even higher than the worst case scenario that they had been penciling in or anticipating. Take a listen.

(BEGIN VIDEO CLIP)

JEROME POWELL, CHAIRMAN, FEDERAL RESERVE: The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth.

(END VIDEO CLIP)

SOLOMON: He also made no assurances that the Fed would come to the rescue in the midst of more turmoil in the stock market or the bond market. It was a wide ranging conversation, John, that included Powell reiterating the Fed's independence, which is especially interesting considering the president's Truth Social post this morning. It was the only response, at least from what I could hear, the only response where he got an applause. He said, look, there is broad support in both parties for an independent Fed and that essentially the Fed doesn't bow to political pressure no matter who is in office.

I will also say that the conversation touched on some lighter topics. He said that when he's not working, he likes to FaceTime with his kids and his grandkids. And apparently, John, he likes to go to the gym. He's a big gym goer, so, some moments of levity and otherwise pretty grim interview.

BERMAN: Look, the Fed chair never skips leg day, but you make a great point, Rahel, which is that normally he speaks in these coded terms he didn't yesterday that was plain English, that even people like me could understand. I mean, he was talking about slower growth, higher inflation, and the fact that he was going to have to do something about it and make tough choices, and obviously the president didn't like to hear that spurring what he said just a few minutes ago.

Rahel Solomon, great report. Thanks so much.

All right, this morning, new video shows a camp for displaced civilians engulfed in flames after new deadly airstrikes hit Gaza overnight.

And then hero ball, a huge night of hoops and actually a pretty big upset in the betting markets. All the best highlights and how this shakes up the playoff picture.

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BOLDUAN: So, unfortunately, for Bulls fans, third time was not the charm for the Chicago Bulls. They are now out of playoff contention, the third straight season that they lost to the Miami Heat in the play-in tourney, and now the Heat headed to Atlanta.

CNN's Coy Wire joining us right now in Hotlanta no less. Good morning.

COY WIRE, CNN SPORTS ANCHOR: It is getting a little warm down here, Kate. Good to see you this morning.

Heat punching their ticket by taking down the Bulls, a bit of an upset in the betting market, as Mr. Berman said a bit ago. This was a win or go home game. The Heat, they dominated, they're up 24 at halftime, this must-win game. And Tyler Herro's Enrique Iglesias, I can be your hero, baby, 38 points, shooting 68 percent from the field, the Heat making him run at the playoffs without Jimmy Butler, of course, who went to the Warriors midseason and a nasty breakup. Coach Spoelstra says he loves this team's perseverance.

After the trade, they lost ten straight at one point, but they rallied and won 8 of their last 12 to get to the play-in, 108-90 beat down to the Bulls. They'll face the Hawks here in Atlanta on Friday with one last shot to make the playoffs.

In the Western Conference showdown, Mavericks in Sacramento facing the Kings and Mavs got vintage Klay Thompson, one of the greatest shooters we've ever seen. The future hall of famer erupted for five three- pointers, 23 points in all. And seven footer Anthony Davis, he's looking healthy now, 27 points for him.

G.M. Nico Harrison saying ahead of the game he has no regrets about his highly criticized midseason trade that sent superstar Luka Doncic to the Lakers, saying people would change their minds when they win. Well, they did, and big, 120-106, will now face the Grizzlies on Friday, winners in the playoffs losers out.

And after sitting at 31st in the overall standings in December, the Montreal Canadiens just punched their ticket to the Stanley Cup playoffs after a 4-2 win over the Hurricanes. And before the game, one of the sweetest jersey swaps you'll ever see. Get your tissues ready. Brendan Gallagher, who lost his mom, Della, to cancer earlier this year, met and swapped jerseys with a fan named Lucy LaShons (ph), who offered to honor his mom by returning his old hockey fights cancer jersey that she'd purchased in 2022.

[07:25:00]

This is the Jersey and, Kate, at the bottom, you'll see there where he wrote, I fight for mom.

Yes, sweet stuff, and congrats to Canadiens on their -- punching their ticket to the playoffs. They start on Saturday. It's about to be on.

BOLDUAN: I've got a couple friends who are very, very happy to see the Canadiens going on and going on. That is love the humanity that we can still find in some things like sports.

It's good to see you. Thank you.

WIRE: You too.

BOLDUAN: Coming up for us, the L.A. County District Attorney's Office is now pushing for a last minute delay in today's long awaited resentencing hearing for the Menendez brothers. Stand by, we'll bring you the details.

And scientists caught on camera for the first time ever in its natural habitat the colossal squid in the deep, and it all happened by chance.

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