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Trump Threatens to Sue Powell for Gross Incompetence; Biggest Crime and Justice Stories of the Year; Kennedy Center Hit with Performance Cancellations. Aired 3:30-4p ET
Aired December 30, 2025 - 15:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:30:00]
ANKUSH KHARDORI, FORMER FEDERAL PROSECUTOR: ... and exactly what was said, whether it was recorded or summarized in an FBI memo. And I think it'll be very interesting for us as members of the public to get some further insight into that because, you know, the notion that this person was motivated by frustration with both sides, it's a very convenient argument for the Trump administration. But it's very possible that the reason he was frustrated with both sides is because he believed the lies that Trump and people like Jeanine Pirro, the U.S. Attorney in D.C., were promoting about Trump having, quote, unquote, won the election. And, you know, at the time, Trump was railing against Republicans, too. Recall, right, he was trying to get them to intervene on his behalf at January 6th.
So I'm quite interested to see what this gentleman actually said, this defendant actually said, and how serious it was, because this is a major case and, you know, obviously we're going to want to get as much insight into his mind as possible.
BRIANNA KEILAR, CNN HOST: Yes, his own vice president, even. Ankush Khardori, thank you so much. Really appreciate it.
Still ahead, why President Trump is ratcheting up more pressure on the Federal Reserve, now threatening a lawsuit against its chairman, Jerome Powell.
[15:35:00]
(COMMERCIAL BREAK)
KEILAR: President Trump has said he would, quote, love to fire outgoing Fed Chair Jerome Powell and now possibly sue him. The president yesterday threatened to sue Powell over what he called gross incompetence. The comments, happening as he signaled his announcement for the next Fed chair, could come as soon as January.
CNN's Vanessa Yurkevich is with us now. All right, Vanessa, what is the lawsuit talk about?
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yes, well, different day, but same threats. And as you mentioned, this is not the first time that the president has tried to file a lawsuit or signaled that he wanted to file a lawsuit against Jerome Powell. And it's not the first time that he said he wanted to fire him either.
Here are his comments from just yesterday.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're thinking about bringing a gross incompetence, what's called gross incompetence lawsuit. It's gross incompetence against Powell.
I'd love to fire him, but we're so close, you know, maybe, but maybe I still might.
(END VIDEO CLIP)
YURKEVICH: OK, so what is this lawsuit all about? He's calling it a gross incompetence lawsuit, and essentially it's over what Trump is calling the mismanagement of the renovations of the Federal Reserve's building in Washington, D.C. Essentially, this building was on track to cost $1.9 billion in terms of renovations, but it's actually bumped up, gone over budget to $2.5 billion. And Trump has really latched on to this.
But the Federal Reserve has said, listen, we're cleaning up asbestos. We're removing lead. We're making the building handicapped accessible.
We're also updating the HVAC system in historic buildings and landmarks. And yes, the construction costs have gone up a little bit over what was initially anticipated. President Trump has taken such an interest in these over budget renovations.
If you remember, Brianna, he actually went to the Federal Reserve in July and tried to call Jerome Powell out for these overruns. Jerome Powell in real time, really remarkable fact checking him, saying that what he was actually quoting was for the renovations of three buildings. But this is really something that the president has latched on to.
Not the first time that he has said he wanted to bring a lawsuit. Will he? Let's see.
Jerome Powell's term ends in May, so there's not a lot of time to get that lawsuit filed -- Brianna.
KEILAR: Does the president have the power or the grounds to fire Powell?
YURKEVICH: It's never been done before. We've never seen this happen in modern history. And essentially, if the president were to fire Jerome Powell, first of all, it would completely rattle global markets.
And Trump needs cause in order to fire Jerome Powell. Cause is very loosely defined here, and that is perhaps why we're seeing him latch on to this potential lawsuit against Powell over these renovations. The other thing to point out is that Wall Street coined a term called TACO. That's probably why you haven't seen Wall Street move that much over this potential lawsuit and firing.
It's because TACO stands for Trump Always Chickens Out. Wall Street very much believes that President Trump makes a lot of threats but doesn't follow through. If he did follow through with this, Brianna, this would be absolutely catastrophic for Wall Street and the economy, because obviously they're very much in lockstep at times.
That is not something that the president wants to deal with right now as he's facing criticism about affordability in America -- Brianna.
KEILAR: Yes, interesting. All right, Vanessa Yurkovich, thank you so much.
Still ahead from the daring daylight robbery of the Louvre to the trial of Sean Diddy Combs, 2025 brought plenty of legal and criminal drama, and we've got the top 10 stories next.
[15:40:00]
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KEILAR: From the conviction of Bryan Kohberger to the dramatic testimony in the trial of Sean "Diddy" Combs, CNN's Jean Casarez breaks down the top crime and justice cases that riveted the country this year.
(BEGIN VIDEOTAPE)
JEAN CASAREZ, CNN CORRESPONDENT (voiceover): At number 10, the Massey murder trial. Illinois Sheriff's Deputy Sean Grayson convicted of second-degree murder for shooting the 36-year-old Sonya Massey inside her home. Massey had actually called 911 to report a suspected prowler but bodycam footage shown at trial showed tensions rising after the officer confronted Massey for how she was handling a pot of hot water.
Number nine, held accountable. A jury awarded Virginia teacher Abby Zwerner $10 million after she sued the ex-assistant principal at her school for failing to act before Zwerner's 6-year-old student shot her in the chest and hand. In gripping testimony, Zwerner told the jury after being shot she was sure she was going to die.
ABBY ZWERNER, TEACHER SHOT BY 6-YEAR-OLD STUDENT: I thought I had died. I thought I was either on my way to heaven or in heaven.
CASAREZ (voiceover): Number eight, shocking museum heist.
FREDRICKA WHITFIELD, CNN ANCHOR: All right. Let's being with breaking news our of Paris. Priceless jewels are stolen from the Louvre in an audacious daytime heist that took only seven minutes.
CASAREZ (voiceover): It all happened at the Louvre in Paris when thieves stole more than $100 million in crown jewels and slipped away in broad daylight. All eight suspects were later arrested but the jewels are still missing to this day.
[15:45:00] Number seven, Karen Read acquitted.
UNIDENTIFIED MALE: What say you. Is the defendant guilty or not guilty?
UNIDENTIFIED MALE: Not guilty.
CASAREZ (voiceover): A jury found Read not guilty of hitting and killing her boyfriend, off-duty Boston police officer John O'Keefe, with her car.
KAREN READ, ACQUITTED OF MURDER OF JOHN O'KEEFE: No one has fought harder for justice for John O'Keefe than I have -- than I have and my team. Thank you.
CASAREZ (voiceover): Large crowds celebrated the decision outside the Massachusetts courthouse.
Number six, Minnesota lawmakers attacked. A man disguised as a police officer ambushed two state Democratic officials at their homes. Minnesota House Speaker Melissa Hortman and her husband were killed, while State Senator John Hoffman and his wife were shot but survived. Vance Boelter was arrested after a two-day statewide manhunt. He has pleaded not guilty to charges of murder and attempted murder.
Number five, deadly stabbing in North Carolina. Passengers watched in horror as 23-year-old Ukrainian refugee Iryna Zarutska was brutally stabbed three times in an unprovoked attack on Charlotte's light rail system.
DISPATCH: So tell me exactly what happened.
911 CALLER: I don't know. We didn't see it. There's just a lady right now on the ground with a lot of blood and everybody's screaming that she got stabbed and I don't know if anybody's called 911 yet. People are just freaking out.
CASAREZ (voiceover): The case became a political lightning rod after the public learned the suspect, 34-year-old Decarlos Brown, had an extensive criminal record.
Number four --
UNIDENTIFIED FEMALE: As to count one, the defendant, Brian Walshe, is charged with murder in the first degree. What say the jury? Is the defendant guilty or not guilty?
UNIDENTIFIED MALE: Guilty.
CASAREZ (voiceover): Brian Walshe convicted. Jurors in Massachusetts found Walshe guilty of murdering his wife, Ana. But unbeknownst to the jury, even before the trial began, Walshe pleaded guilty to illegally disposing of Ana's body and misleading police.
Walshe's defense argued that Ana died in a sudden, unexplained death, something prosecutors told jurors defies common sense. The defense rested without Walshe testifying or even putting any evidence to back their claims. Walshe now faces years in prison. Ana's body has never been found.
Number three, Catholic schoolchildren gunned down.
BORIS SANCHEZ, CNN ANCHOR: We're following breaking news of a deadly mass shooting at a Catholic school and church in Minneapolis, Minnesota.
CASAREZ (voiceover): August 27, a shooter fired dozens of rounds through stained glass windows into the sanctuary of Church of the Annunciation in Minneapolis. Students from the Annunciation Catholic school were gathered inside to celebrate a mass in honor of their first week of school. The attack killed two children and wounded two dozen others, as well as adults.
JESSE MERKEL, FATHER OF FLETCHER MERKEL: A coward decided to take our 8-eight-year-old son Fletcher away from us. Because of their actions we will never be allowed to hold him, talk to him, play with him, and watch him grow into the wonderful young man he was on the path to becoming.
CASAREZ (voiceover): The suspected shooter, a 23-year-old who graduated from the school in 2017, died of a self-inflicted gunshot. Sadly, this was just one of the more than 70 school shootings in the United States this year.
Number two, controversial plea deal.
UNIDENTIFIED MALE: Are you pleading guilty because you are guilty?
BRYAN KOHBERGER: Yes.
CASAREZ (voice-over): In a move that blindsided the families, Bryan Kohberger took a plea deal before heading to trial for the grisly murders of four University of Idaho students in 2022. In exchange for the guilty plea, the government removed the potential for the death penalty. At the emotional sentencing hearing, the families of Kaylee Goncalves, Ethan Chapin, Xana Kernodle, and Madison Mogen had their turn to speak directly to the killer.
STEVE GONCALVES, KAYLEE GONCALVES' FATHER: Police officers tell us within minutes they had your DNA, like a calling card. You were that careless, that foolish, that stupid.
RANDY DAVIS, XANA KERNODLE'S STEPFATHER: You're going to go to hell. I know people believe in other stuff. You're evil. There's no place for you in heaven.
CASAREZ (voice-over): Kohberger is now serving four consecutive life sentences in prison without the possibility of parole.
And number one.
ANNOUNCER: This is CNN breaking news. UNIDENTIFIED FEMALE: Happening now is the breaking news coming in. Jurors in the trial of Sean "Diddy" Combs have reached a verdict on all counts.
CASAREZ (voice-over): Rap mogul Sean "Diddy" Combs found guilty. But Combs avoided the most serious charges stemming from his federal sex trafficking trial and was found guilty of lesser counts, including transportation to engage in prostitution.
[15:50:00]
Each day, hundreds of people gathered outside the courthouse to follow the proceedings, despite no cameras being allowed in the courtroom. Combs got more than four years in prison and was fined $500,000. His attorneys are now appealing.
Jean Casarez, CNN, New York.
(END VIDEOTAPE)
KEILAR: Now to some of the other headlines that we're watching this hour. New Year's revelers in New Orleans may notice a beefed up security presence at tomorrow night's festivities. National Guard forces deployed as part of the Trump administration's immigration crackdown will be among those patrolling the French Quarter.
However, a city police spokesman says that's consistent with big events there in the past, including the Super Bowl and Mardi Gras. He also says the Guard troops will not be on the streets to enforce the immigration crackdown. Last year's celebration turned tragic when a truck plowed into a crowd on Bourbon Street, killing 14 people.
And right now, a group of Buddhist monks are about halfway through an incredible journey, walking 2,300 miles from Texas to Washington, D.C., on what they're calling a pilgrimage for peace. Crowds of supporters cheering them on, getting bigger and bigger. The monks are now in Georgia after starting in Fort Worth, Texas, in late October.
They're also traveling with a rescue dog and say their mission is to spread peace, love and compassion one step at a time.
Still ahead, growing backlash over President Trump's aggressive push to reshape the Kennedy Center here in Washington, D.C. Why adding his name to the historic venue is prompting more and more artists to cancel shows there.
[15:55:00]
(COMMERCIAL BREAK)
KEILAR: The addition of President Trump's name to the Kennedy Center in Washington, prompting more backlash from artists who are scheduled to perform there. Days before their New Year's Eve show, jazz group The Cookers canceled their appearance. Drummer Billy Hart telling the New York Times they feared retaliation if they performed. And New York City-based Doug Verone and Dancers announced they would
also be pulling out of their shows set for April. And they join a growing number of artists who say they're no longer comfortable associating with the institution.
Let's bring in CNN's Tom Foreman. Tom, how has the center responded to this? That's a shifting schedule.
TOM FOREMAN, CNN CORRESPONDENT: Well, you know, this has been an evolving thing, right? Ever since Trump took over control of the board there and put in these hand-picked members, people have not been very happy about it in some parts of the artistic community. Some people who are saying they're not necessarily against Trump, they just don't like feeling like it's been politicized this way.
Look at some of the comments from performers there. The Cookers, who were regulars on the New Year's Eve sort of show thing, they said, "Jazz was born from struggle and from a relentless insistence on freedom, freedom of thought, of expression, and of the full human voice." And then they went on to say, We remain committed to playing music that reaches across divisions rather than deepening them."
Doug Verone and Dancers, another act that has canceled there, they were supposed to perform, they said, "... with the latest act of Donald J. Trump renaming the center after himself, we can no longer permit ourselves nor ask our audiences to step inside this once great institution."
And lastly, I want to mention Christy Lee, who is a folk singer from down in Alabama. And she said, "When American history starts getting treated like something you can ban, erase, rename, or rebrand for someone else's ego, I can't stand on that stage and sleep right at night."
So you asked, Brianna, how the center is responding to this. The president of this board that Trump handpicked, he said, "The actions of these artists prove that the previous team," meaning the people who previously ran this or under the Biden administration or whatever, "was more concerned about booking far left political activists rather than artists willing to perform for everyone regardless of their political beliefs."
And he went on to call it a form of derangement syndrome, which, you know, has become sort of a catch all for a lot of people in the Trump world to say. Anytime somebody opposes Trump, well, they're deranged. How could they disagree with him?
And yet there are preservationists as well who look at this and say, this is an American gem that everyone should share in. And suddenly changing the name by putting not merely the name of another president on it, but of a sitting president. You and I both know that virtually never happens here, that a sitting president slaps their name on something.
KEILAR: It's a stunning politicization of a cultural institution that has traditionally served all kinds of people. FOREMAN: And has brought people together.
KEILAR: That's right.
FOREMAN: Left and right.
KEILAR: That's right. Members of the board say they're actually planning to sue one act for canceling. Tell us about that.
FOREMAN: Yes, they talked about going after Chuck Redd, who's played there for a long, long time. And they basically say, you're doing tremendous damage to us. We're going to sue you for a million dollars for this, what they call a political stunt.
Who knows? Who knows where that winds up in court. But that also has overtones of a lot of what we hear from the Trump team, which is somebody dislikes him.
Somebody makes him feel bad. They say they're going to sue.
KEILAR: Yes, very true. All right, Tom, stay with us because I need you. You're fun.
FOREMAN: I'll be here.
KEILAR: For this next story that we're going to do here.
Beyonce adding another milestone to her already iconic career. According to Forbes, she's now a billionaire. Most of Beyonce's wealth coming from controlling the rights to her huge music catalog. Beyond music, Beyonce also runs successful hair care and whiskey ventures.
She's now the fifth musician to reach that 10 figure status. And she joins her husband, Jay-Z, Taylor Swift, Bruce Springsteen and Rihanna. That's not so bad.
FOREMAN: No.
KEILAR: Beyonce, the billionaire.
FOREMAN: No. This is great. You know what's also great about this?
Honestly, you think about all the musicians in the 50s and the 60s who got such terrible deals.
KEILAR: Right.
[16:00:00]
FOREMAN: This is great. This is great. More of it.
Not that I'm saying we need a whole lot more billionaires. I guess we have plenty, but.
KEILAR: I like the colorful ones like Beyonce and Taylor Swift and Jay-Z. FOREMAN: Yes, knocking it down.
KEILAR: It makes it fun.
"THE ARENA" with Kasie Hunt starts right now.
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