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U.S. Stocks Plunge As Trump Continues To Bash Fed Chair Powell; Sources: Hegseth Shared Military Details In Second Group Chat; Vatican: Pope Francis Died Of A Stroke & Heart Failure; Supreme Court Temporarily Pauses Deportations Under Alien Enemies Act; Four House Dems Visit El Salvador To Seek Release Of Abrego Garcia. Aired 3-3:30p ET

Aired April 21, 2025 - 15:00   ET

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

BRIANNA KEILAR, CNN HOST: And a new Signal controversy for Pete Hegseth. The defense secretary accused of, again, sharing military plans on a group chat, a different one this time with family members on it. Hegseth firing back, blaming disgruntled former staffers and the media.

And an ugly day on Wall Street. Stocks plunging hours after President Trump attacked Federal Reserve Chief Jerome Powell, calling him a major loser.

We're following these major developing stories and many more all coming in right here to CNN NEWS CENTRAL.

We do begin this hour with our breaking news off of Wall Street. President Trump's continued attacks on Fed Chair Jerome Powell and his attempts to oust him, sending the markets into another deep dive.

SANCHEZ: The stocks, as you can see on your screen, plunging following the President's comments amid Powell's refusal to cut interest rates. He called the Fed Chair a major loser on Truth Social and once again demanded that Powell immediately take action.

Let's get the latest from CNN Business and Politics Correspondent Vanessa Yurkevich who's watching markets.

So, Vanessa, what else is fueling this draw?

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yes. Well, we're seeing a major sell-off on Wall Street today. You see the Dow down more than 1,200 points, the NASDAQ down almost 4 percent, and the S&P down just over 3 percent. So, there's two storylines playing out right now that investors and traders are sort of trying to grapple with and storylines they don't think are going away any time soon.

First, you have the situation where, over the weekend, we know that there were negotiations going on, and even into last week, between Japan and the United States. But investors and traders aren't seeing any tangible deals being made, and that's concerning for them because they see Japan as an ally, as a key trading partner.

And you - and I have an analyst that I spoke to a little bit earlier who said that if Japan and the U.S. can't come to a deal, what does that mean for the dozens of other countries that are supposed to be negotiating with the United States around this trade war. And then, as you mentioned, you have President Trump on Truth Social earlier posting that he wants the Federal Reserve to lower interest rates and also calling the chair of the Federal Reserve, Jerome Powell, a loser and Mr. Way Too Late, essentially saying that he's way too late in lowering rates.

But the Federal Reserve is an independent institution. It was set up that way on purpose. And so now you have traders and investors worried that the President is trying to meddle into monetary policy. Now, this is nothing new for the President. In his first term, he also tried to signal that he wanted to remove Jerome Powell, but ultimately, for investors and traders.

The Federal Reserve acts sort of as a safety net, a way to sort of check and balance the U.S. economy. And we know, look at what happened during COVID, the Federal Reserve was instrumental in bringing down inflation, and many economists warn that this trade war will only make prices go higher, prices increase, and so the Federal Reserve will be key in trying to manage those high prices for everyday U.S. consumers.

So, you have investors sort of seeing two stories play out here and they don't see an end to these stories. And so, you have investors and traders pricing in sort of the worst-case scenario in markets right now. The Federal Reserve will meet next month, and that's where we will hear from Federal Reserve Chair Jerome Powell about what they will do with interest rates, and no doubt the press conference that follows that initial announcement about what they're going to do with interest rates. Jerome Powell will be asked about this sparring with the President.

Previously, Jerome Powell has said that the President does not have the power under the law to remove him. We did read through one Supreme Court ruling from 1935 that said only if there was cause could the President remove someone like the Fed Chair, but it's really, really tricky to do something like that. It's never been done before, and if you look at the picture that's playing out on Wall Street right now, to remove the chair of the Federal Reserve would only make what we're seeing today a lot worse. Boris and Brianna?

SANCHEZ: Vanessa Yurkevich, thank you so much for the reporting.

So today, President Trump says that he is standing behind his Defense Secretary, Pete Hegseth, following reports that Hegseth shared strike plans against Houthi targets in Yemen in a second Signal group chat. Sources tell CNN the Signal group chat included Hegseth's wife, his lawyer, and his brother, and the details revealed are similar to what the Defense Secretary shared in that other group chat, which came to light after the editor of The Atlantic was mistakenly added to it.

Hegseth is also dealing with fallout from some of his closest advisors, several of whom were fired last week, sounding the alarm about his leadership. Hegseth defended himself earlier today, but notably did not deny sharing the strike plans in that second group chat. Listen to this. (BEGIN VIDEO CLIP)

PETE HEGSETH, DEFENSE SECRETARY: This is what the media does. They take anonymous sources from disgruntled former employees, and then they try to slash and burn people and ruin their reputations.

(END VIDEO CLIP)

[15:05:05]

SANCHEZ: With us now to discuss is retired U.S. Navy Admiral James Stavridis. He served as NATO Supreme Allied Commander and is currently a partner at the Carlyle Group, a global investment firm.

Admiral, always great to see you. Is there a legitimate reason that you could see why Secretary Hegseth would not only use his personal device for these communications, but also share these details with his loved ones and his attorney?

ADM. JAMES STAVRIDIS (RET.), CNN SENIOR MILITARY ANALYST: There is absolutely no reason on the planet Earth he should be doing that. And he knows it. He's a former major in the U.S. Army. He was trained throughout his time as a junior officer to protect and guard the nation's secrets. He's got to know that he has failed to do that.

And let's face it, Boris, if Signal Gate 1.0 was a release to a group of high-ranking officials which it was and got leaked inadvertently to a member of the media, so we saw exactly what was on it. Here we are at Signal Gate 2.0, where evidently if the reporting is correct, very similar level, but now it's going to unclassified individuals who lack the need to know any of this.

So it's gone from outrageous to truly egregious. And it's conduct that, frankly, is indefensible.

SANCHEZ: The Pentagon has responded to these reports through a spokesperson, Sean Parnell. He said in a tweet Sunday night that there was no classified information in any Signal chat. Do you think that's the case? Does that make a difference in this story?

STAVRIDIS: It's hard for me as someone who spent almost 40 years in uniform and has seen how we handle service, protect, attack plans like that. When you include times, ordinance, locations, you are setting up our aviators for possible intercept, it's as though a bank robber has provided the date, the time and the type of weapon he was going to use to rob a bank. We don't want that made public. Neither does the bank robber, frankly.

But in this case, again, as I look at that and put my years of experience on, it appears to me to be highly classified information. And I think that is an opinion shared pretty much across the national security sector.

SANCHEZ: I'm curious, Admiral, what you make of the Secretary alluding to disgruntled employees being the source of these reports. He's had a series of resignations at the Pentagon in recent weeks. And some of the reported discord between the Secretary and top aides has found its way into the headlines. Is that normal?

STAVRIDIS: No, it's not normal at all. And I know these jobs well, because I had one of them. I was the senior military assistant as a three-star to Secretary of Defense Don Rumsfeld. So, if you had told me during that period that the civilian deputy chief of staff, a high- ranked special assistant, the spokesman and the chief of staff to the deputy secretary of defense were all going to quit, all of whom through a lot of pretty well-sourced reporting are indicating they're disgruntled about it.

I think the Secretary's correct that they are disgruntled, but they're disgruntled because they can't figure out why they got fired. Just like the chairman of the joint chiefs and the chief of naval operations were never really told why they were fired. You have loyalty from them on the far side of the bridge.

So, no, I'm not surprised about the blowback from firing people that you have hired. We ought to remember, these are folks that Secretary Hegseth hired, put on his team. He chose them. He's worked with them in the past. I think it's quite damning. And I'll close with this, if folks haven't seen the op-ed written by his former (INAUDIBLE) which lays out all of this quite clearly, again, someone hired and brought into the Pentagon by Secretary Hegseth. That's pretty damning in my view.

SANCHEZ: Admiral James Stavridis, very much appreciate you sharing your perspective. Thanks for joining us.

STAVRIDIS: Thanks, Boris.

SANCHEZ: Still to come, in a rare weekend order, the Supreme Court temporarily blocking the White House from deporting migrants under the Alien Enemies Act.

KEILAR: And later, more on our coverage of Pope Francis' death. We'll take a look at how he was a vocal champion for migrants' rights. That and much more coming up on CNN NEWS CENTRAL.

(COMMERCIAL BREAK)

[15:14:12]

KEILAR: Happening now, millions of people in mourning this Easter Monday as the world pays tribute to the pontiff who redefined the role. Pope Francis died earlier today at the age of 88, just hours after delivering his final Easter blessing. The Vatican, a short time ago, said that he died of a stroke and heart failure after battling weeks of illness.

SANCHEZ: He was known as an outsider, breaking boundaries with his stance on same-sex marriage, his push for women leadership at the Vatican, and his urgent calls for global leaders to welcome and care for migrants. Let's take you now live to St. Peter's Square. CNN Vatican Analyst Elisabetta Pique is there.

Elisabetta, first, walk us through what happens next. [15:15:00]

ELISABETTA PIQUE, CNN VATICAN ANALYST: What happened now, it's a - you can see, you can feel here, really, a very sad, sad climate here, a climate of shock. A lot of people coming. Before, there was this rosary for him. At the end, there was a clap. There is a lot of emotion. This Pope was felt like the Pope - our - the Pope of the people. Era uno de - they would say here, he was one of us, this Pope that was so close to people, and then people are starting - understanding that what we saw yesterday here, when he did this last appearance in this Pope mobile, when you could really see, I could see him really near, that he was not well at the end. This was a farewell.

So, really grateful at the end that this Pope would spend the last, you know, the last train he had to be with the people here in the square. So, there is a really very big emotion. We have seen, of course, a lot of Argentinians coming here with a football t-shirt from Argentina, but also for - from other teams of Argentina.

We remember that Pope Francis was a fan of football, of soccer, I would say, in the United States. So a lot of emotion, a lot of participation of this morning that was unexpected because everybody was optimistic, thinking that, well, there was a recovery, but there was not such a recovery, and he - this 38 days of hospital were really dramatic and changing. There was another Pope Francis after he came out from the Gemelli Hospital.

KEILAR: Yes. And Elisabetta, I do want to note, you grew up in Argentina. Your own children were baptized by Pope Francis before he became pope, which is certainly something very special. Can you just share what his life has meant, what his role in the Church has meant to Argentinians?

PIQUE: Well, of course, for Argentinians, to have - they would say, of course, he has been the more important person in the history of Argentina besides Maradona or Messi. This was really the most extraordinary pope, a pope that became also the voice of the people without no a voice. A pope that you were saying before, you know, very attentive to all the outcasts, all the migrants.

He was a pope also that he was a migrant, because he was from a family from Italy, from the Piemonte, that immigrated to Argentina, so he knew - he was born in Argentina, of course, in 1936, but he grew up with this sense of, you know, not having your roots, having the roots elsewhere, so understanding well - very well the drama that we are seeing today and he has seen in his own country, a country made by migrants, and in this sense also very important to see how in Argentina there is, we have this blessed, really Pacific convivence, you know, with Jewish people, Muslim people.

In that sense, you will remember this - his famous trip to the Holy Land in which he wanted to be accompanied by a - his - the rabbi, Skorka, and another friend of his, a Muslim and Jew, and they - when he went to pray to the Wailing Wall, then there was this embrace by the three friends, you know, this sense of friendship, and this having really being from Argentina and this look from the peripheries, not just geographical peripheries, but as he would say, the existential peripheries.

KEILAR: Yes, certainly. Elisabetta Pique, thank you so much, joining us from St. Peter's Square.

And with us now is Cardinal Blase Cupich. He is the Archbishop of Chicago.

Cardinal, thank you so much for taking time to be with us. And this is really the first of many days of mourning and reflection for Catholics around the world. How are you seeing this moment for the church?

CARDINAL BLASE J. CUPICH, ARCHBISHOP OF CHICAGO: Well, thank you for having me, Brianna. I woke up this morning at around 3 o'clock. I got a call and was shocked and saddened. But as I'm reflecting on his time as the Holy Father, I have a deep sense of gratitude that I was able to be a part of his governance of the Church and live in a time when he was a pope. So, my heart is really filled with gratitude in this moment.

[15:20:04]

KEILAR: And he wasn't afraid of controversy, right? He didn't change the church doctrine, but he definitely changed how he talked about people as the head of the church, how he talked about people who have felt marginalized by the church. And you were a member of the College of Cardinals, which is going to be tasked with choosing his successor. Do you think, as a group, that you will pick someone with - I guess, what you might call his progressive streak or go a more traditional route?

CUPICH: Well, you know, I don't think that he sought controversy. He just tried to be a real person and be in touch with the everyday, real life of people. And that's, I think, what marked him in a different way that helped all of us, who were shepherds of dioceses, to make sure that we really attend to where people's lives are and so he called us all to an authenticity.

As we go forward, I know a number of the members of the College of Cardinals who are very in tune with the Holy Father's direction. And so, it's too soon to talk about what will happen. We're all in a moment of grief and mourning. But I'm confident that his call to authenticity is something that resonates with so many.

KEILAR: And you and several other U.S.-based cardinals met with Pope Francis pretty recently back in October, which I know must be a very meaningful meeting to reflect on, where one cardinal had said, you all discuss challenges in the United States. That was the quote. Can you talk to us about that conversation and what you view as the challenges that are facing the American Catholic Church at this key moment?

CUPICH: Well, we were there for the synod, and so it was about how do we move the church forward in a synodal way. That was always on the Pope's mind, and so he had conversations with a number of cardinals and those who were participants in the synod process. That, I think, is a very important aspect of his time as Holy Father. He believes that we're all fellow pilgrims and that we can learn from one another along the way. That is something that I think is going to be part of his lasting legacy.

KEILAR: And you say the finest memorial we can offer is to reform our hearts, as Pope Francis asked. What do you mean by that?

CUPICH: Well, it is by recognizing how interconnected we are that we're all fellow pilgrims. You covered a bit ago the immigration issue. When he spoke to the Joint Session of Congress in the United States, he was very clear in saying and challenging us, let's remember, everybody, we're all immigrants here in this country.

And so I think that as we move forward, if we're going to be true to his legacy, the greatest memorial we can have is to make sure that we carry on the vision that he has given us, but also the call to be real human beings, authentic human beings.

KEILAR: Cardinal, thank you so much. We really appreciate you joining us today. Thank you.

CUPICH: Thank you for covering this. I'm so grateful to you.

KEILAR: We're grateful that you took time for us today. Thank you.

And coming up, a rare weekend overnight order by the Supreme Court that blocked President Trump's use of wartime authority to speed deportations of a group of immigrants in Texas. We'll have that next.

(COMMERCIAL BREAK)

[15:28:30]

SANCHEZ: The legal battles over President Trump's immigration policies are intensifying. Over the weekend, the Supreme Court issued an order temporarily stopping the Trump administration from deporting a group of immigrants in Texas detained under the Alien Enemies Act, the nation's highest court, freezing the fast-moving case to allow more time for legal proceedings.

Meantime, four House Democratic lawmakers are in El Salvador today advocating for the release of Kilmar Abrego Garcia. The Maryland man is at the center of a legal fight right now after the Trump administration acknowledges it mistakenly deported him.

I'm joined now by Tom Dupree, a former Deputy Assistant Attorney General.

Tom, always a pleasure to have you on.

Walk us through this ruling. How is it going to impact Trump's immigration crackdown efforts?

TOM DUPREE, FORMER DEPUTY ASSISTANT ATTORNEY GENERAL: Well, this really is an extraordinary ruling in many respects, not least of which is that it came out shortly after midnight, which is something the Supreme Court very rarely does. They typically don't work those hours. But what was interesting here is that the Supreme Court basically said things were moving a little too fast. It pumped the brakes, it basically hit pause on the Trump administration's effort to remove these individuals under the Alien Enemies Act.

The Supreme Court didn't offer an authoritative opinion on whether Trump had the power to do it, whether he could remove people under this act. Rather, what it said was simply, you've got to hold off for now until we can take a closer look at this case. And it's likely what the court is focused on is whether the administration gave these people who are subject to removal adequate notice and the opportunity to at least make their arguments before they're removed from the United States.

[15:30:10]