Return to Transcripts main page

CNN News Central

U.S. Director of National Intelligence Tulsi Gabbard Resigns; Ebola Risk Level Raised; NASCAR Mourns Kyle Busch; New Federal Reserve Chairman Sworn In. Aired 1-1:30p ET

Aired May 22, 2026 - 13:00   ET

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

[13:00:00]

(COMMERCIAL BREAK)

[13:00:47]

OMAR JIMENEZ, CNN HOST: Meet the new boss. Kevin Warsh taking charge at the Federal Reserve, facing unprecedented challenges and the president's high expectations.

And, look, you have heard it before. You need to pack your patience if you're traveling this holiday weekend. But if you're traveling, you shouldn't forget your wallet, because a number of Americans, a record number of Americans will be on the road and in the skies feeling the squeeze from rising prices.

BORIS SANCHEZ, CNN HOST: And mourning a legend of the track, the sports world stunned by the death of NASCAR driver Kyle Busch at just 41 years old.

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

Thank you so much for joining us this afternoon.

The Federal Reserve has a new chairman, and President Trump is making it pretty clear what he wants him to do. Kevin Warsh was just sworn in to lead the U.S. Central Bank, one of the most important independent financial institutions in the world. He takes over for the embattled term-limited former Chairman Jerome Powell.

For years, Powell's been a punching bag for many of President Trump's personal economic grievances. Today, Trump hosted Warsh's inauguration at the White House, showing just how invested he is in the Fed's new leader.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Thankfully, unlike some of his predecessors, Kevin understands that, when the economy is booming, it is -- that's a good thing. We don't have to go crazy. Just let it boom.

We do have some debt we'd like to take care of, and the way you do that is through growth. We're going to grow our way out of it so fast.

And Kevin is somebody, and I feel strongly also, we don't want to see it stifled. We want to stop inflation, but we don't want to stop greatness.

(END VIDEO CLIP)

SANCHEZ: Warsh, of course, steps in at a very turbulent time. U.S. consumer sentiment has plunged to an all-time low.

Americans are feeling worse now than they have during any wars, the 1970s oil crisis, 9/11, the Great Recession, the COVID-19 pandemic, even the inflation surge afterward.

Let's discuss with business columnist and founder of The Pinpoint Press Rick Newman.

Rick, thank you so much for being with us.

President Trump has been wanting the Fed to cut interest rates for a while. Do you expect that is soon going to happen?

RICK NEWMAN, BUSINESS COLUMNIST AND PUBLISHER, THE PINPOINT PRESS: Absolutely not.

And markets are telling us this. In fact, it's President Trump's own fault that the Fed, that the Federal Reserve is not likely to be cutting interest rates any time soon. Before the Iran war, at the start of this year, markets, whether it's prediction markets or financial markets -- there are different ways of looking at this.

But the outlook was for maybe a couple of interest rate cuts by the Federal Reserve, maybe half-a-percentage point, maybe three-quarters. That's -- that would be mild stimulus. But markets now expect there will be zero interest rates -- interest rate cuts this year, and maybe even interest rate hikes.

And that's because the Iran war has triggered inflation. It's 3.8 percent in the latest reading. It's probably over 4 percent right now. The Fed cannot really cut interest rates when inflation is going up, because that makes inflation worse.

And even if Trump thinks he now has a friend in the new chair of the Federal Reserve, that's only one of 12 votes. And, even then, I don't think Kevin Warsh is going to do something as kooky as trying to lead the whole Fed into lowering interest rates in the midst of an inflation spike.

So we're not going to get any interest rate cuts this year. That seems almost certain. And interest rates could end up going higher.

SANCHEZ: Yes, Rick, it sounds like you feel pretty strongly that the Fed is going to maintain the independence that it did under Jerome Powell now under President Trump's handpicked successor, Kevin Warsh.

NEWMAN: Yes. And I think that's a good point. And that's a good outcome. I mean, a year ago, there were some real

questions. Trump was talking about trying to fire Jerome Powell. He was talking about basically trying to stack the 12-person Federal Reserve Board with allies of his who would vote to lower interest rates.

So far, he's only gotten one person on that board. That's Stephen Miran, who he put on the board last year.

SANCHEZ: Right.

NEWMAN: That's one of the few who think we should actually be cutting rates. The rest think we should be raising them.

Trump has tried other things to take control of that 12-person board, and he just hasn't been able to do it. He tried to fire one of the independent governors. That has not worked out. And this is a good thing for markets.

[13:05:06]

And even Kevin Warsh -- I think if Kevin Warsh had tried to say publicly that, yes, he will do whatever President Trump wants, I don't think the Senate would have confirmed him. So we have somebody who's more or less a normie running the Federal Reserve. That is a good thing.

And I think that what that means is the Federal Reserve is likely to remain independent for the remainder of Donald Trump's presidential term. That's a good thing for markets and for Americans.

SANCHEZ: Well, there's a new consumer sentiment survey out today, and it's not looking good, as I mentioned, all time, as you see on the chart on your screen, all-time lows.

What do you think is driving this? How is it impacting the economy? How does the administration reverse this trend?

NEWMAN: Well, one explanation is simple.

And that's when we have gases -- gasoline prices, not at the highest levels ever, but basically at the second highest levels ever, compared with 2022, after Russia invaded Ukraine. But when drivers see $4 gasoline advertised on those big signs at every filling station, now, that automatically puts them in a good mood and tells them something is wrong.

However, there's another deeper thing going on here, which is a long- term kind of disgust with what's happening in the U.S. economy. I don't think there's a simple explanation, but I think we have seen wealth inequality getting a lot worse. A lot of Americans just have no cushion.

There's been inflate -- we have had elevated inflation for four years and prices have not come down. So we do not have -- it's not as bad as the Great Recession in 2008 or 2009. So that's a bit misleading that confidence is that low.

But we have deep underlying problems, and there are no simple fixes here. And pushing gas prices up, instead of trying to figure out how to get them down, is certainly not going to do it.

SANCHEZ: The K-shaped economy becoming more and more K-shaped every day.

Rick Newman, always appreciate seeing you.

NEWMAN: That's it.

SANCHEZ: Thanks for joining us -- Omar.

NEWMAN: Thanks, guys. See you.

SANCHEZ: Of course -- Omar.

JIMENEZ: One of the places that people are going to feel it is, we have got the first major travel holiday since the war with Iran began. It's now under way.

And now, more than ever, people can't escape the high cost of fuel., the average price for a gallon of regular unleaded, for example, now $4.55. And AAA says this is the first time since July 2022 that all 50 states plus D.C. are at or above $4 a gallon.

I want to bring in CNN's Vanessa Yurkevich, who is at a gas station in New Jersey for us.

So, Vanessa, what are you hearing from people who are starting to make their way out of town for the holiday or just stopping to get some gas?

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yes, it's a mixed bag out here, but AAA reporting that it's going to be a record-breaking holiday weekend, 45 million Americans set to travel this Memorial Day weekend, 39 million of those Americans by car, filling up at gas stations around the country, including right here in New Jersey.

Folks here are paying $4.62 for a gallon of regular gas. That's just above the national average, which is at $4.55. But that is more than 50 cents up from a month ago, more than $1.50 up from when the war with Iran started at the end of February.

And this is the second most expensive Memorial Day for gas prices since 2022, during the war with Russia and Ukraine. Now, I have been speaking to drivers all morning, a mixed bag, as I said, some saying they're staying put, some saying they're just biting the bullet and getting on the road, and others saying that they're going to be making changes.

Listen to a few of those conversations from just a bit earlier.

(BEGIN VIDEO CLIP)

DEXTER TRABAD, MOTORIST: I'm not really, like, traveling a lot because of the gas prices, so just limiting my travel around New Jersey, because it's too much, you know?

GAVIN BREEN, MOTORIST: I mean, depending on how expensive gas gets like, probably I'd have to cut down on how much I'm going. I'd like to go, like, three or four times, but it might have to be -- it might have to be a little less this year.

JESSE DEMING, MOTORIST: I saw it was $4.62, and I passed a few places that were like $4.40. So it was like I just kind of have to bite the bullet and get it here, but wish I didn't have to, for sure. It'd be nice if it was like $3.50 again.

ALISON ROGERSON, MOTORIST: I have been thinking about the gas prices, joking that we need to take out alone for the weekend.

(END VIDEO CLIP)

YURKEVICH: Now, not a lot of relief anywhere across the country. All 50 states have an average of more than $4 a gallon, seven states with an average of at least $5 a gallon. Think California, Hawaii, Oregon.

And, Omar, it's worth pointing out that, if the Strait of Hormuz remains closed and this war is ongoing, that keeps oil prices elevated. That keeps gas prices elevated. And according to GasBuddy, between Memorial Day and Labor Day, peak vacation season for Americans, we're looking at an average of $4.80 a gallon on average over these next few months if things stay the way they are.

[13:10:09]

That is not approaching yet that $5.02 record that was set in 2022, but, Omar, it's creeping up there.

JIMENEZ: Yes, I mean, most conversations around driving are typically around saving money, instead of flying or taking some other form of transportation.

Vanessa Yurkevich, unofficial start to summer, you look a little cold out there with the layers. But we will talk about that later. Vanessa, good to see you.

YURKEVICH: It's chilly here today.

JIMENEZ: Thanks for the coverage.

(LAUGHTER)

JIMENEZ: Yes. Yes, for sure.

All right, we're covering a lot of stories today, including the sudden death of NASCAR champion Kyle Busch shocking the racing world and beyond. We will tell you what we're learning about his final days. And I want you to hear his really almost prophetic final interview. Plus, the World Health Organization raises the Ebola risk level to

very high in the Democratic Republic of Congo. We will tell you what that means and the latest on the spread.

And then, later: The truth is out there, folks. Is that alien life too? The Defense Department just released a second batch of declassified UFO files. We're combing through them.

That and much more coming up on CNN NEWS CENTRAL.

(COMMERCIAL BREAK)

[13:15:35]

SANCHEZ: There is tragic news out of the sports world and for racing fans. Two-time NASCAR champion Kyle Busch has died suddenly at just 41 years old.

Busch's family announced the news shortly after revealing that he was suffering from an unspecified, but severe illness. We actually have some live images from Charlotte Motor Speedway, where they have put up a tribute to the late racer. He was in the middle of his 22nd season in NASCAR's top division and was scheduled to race just two days from now in Charlotte.

Let's go there live with CNN's Dianne Gallagher.

And, Dianne, Busch raced just last weekend and actually won. So, to say that this is a shock is an understatement.

DIANNE GALLAGHER, CNN NATIONAL CORRESPONDENT: Yes. It is a shock for everybody here in Charlotte, everybody in the motor space, racing world, Boris.

I will note that Kyle Busch was actually supposed to race tonight in the Truck race. And that's what he won last week as well, because, if there was one thing Kyle Busch loved to do, it was race. Any level of racing he could do, he would. He loved to drive.

And that's why it did come as a shock when his family posted that he would not be racing this weekend because he had been hospitalized with a severe illness. Hours later, NASCAR, in a joint statement with the Busch family and his team, Richard Childress Racing, announced that Kyle Busch had died at just the age of 41.

Now, the AP citing anonymous sources reports that, on Wednesday, Busch became unresponsive while testing a racing simulator. He was taken to a hospital in Charlotte. There's not been a cause of death revealed at this time. About two weeks ago, during a race, he did radio that he wanted to see a doctor after the race.

The broadcast noted that he had been battling a severe sinus cold. In that statement from NASCAR and the Busch family and the team, they said they are heartbroken. They called Busch a future Hall of Famer and -- quote -- "a rare talent who comes along once in a generation." Kyle Busch is the winningest NASCAR driver of all time. He has 234 victories across the NASCAR series. He is a two-time Cup Series champion who, back in 2015, the first week of that season, he was in a crash the first weekend. He broke bones in both legs and then managed to come back and still win that series champion.

On Friday, when he was winning that -- after he won that truck race and did that signature victory bow, he sounded reflective. Take a listen.

(BEGIN VIDEO CLIP)

QUESTION: ... Busch, your 69th victory in this series, your fifth right here. Why do these moments never get old, Kyle?

KYLE BUSCH, NASCAR DRIVER: Because you never know when the last one is.

(END VIDEO CLIP)

GALLAGHER: And, look, Kyle Busch had mellowed out a bit. He was often known as KFB or a villain on the track. But becoming a father and the struggles that he and his wife, Samantha, went through with years of IVF, they then went on and created the Bundle of Joy Fund, Boris.

And they have donated millions of dollars in grants to families. More than 100 children today have been born using money from their foundation. They were some of the first people to openly start speaking about infertility, especially in the NASCAR and motorsports world, trying to bring awareness and, of course, bring funds to what is often a prohibitively expensive treatment for many people.

That, for many, including myself, I believe, will be his enduring legacy off the track and something that his family and Kyle put so much into.

SANCHEZ: Wow, a legacy that will not soon be forgotten.

Dianne Gallagher, thank you so much for that reporting -- Omar.

JIMENEZ: Tragic story.

Meanwhile, the World Health Organization has upgraded the risk level from Ebola from high to very high in the Democratic Republic of Congo. It warns the virus is now spreading rapidly in the country, with the epidemic likely larger than the nearly 750 suspected cases and 177 deaths.

I want to bring in CNN's Meg Tirrell, who joins us now.

So, Meg, look, the global risk still remains low. I want to be clear about that. But what more can you tell us about what we're seeing in the country right now?

MEG TIRRELL, CNN MEDICAL CORRESPONDENT: Yes, Omar, I mean, this is a region of the Democratic Republic of Congo, the Ituri province in the northeastern part of the country, that has a lot of unrest and a lot of displaced people, about 100,000 people only recently displaced there.

They also note that this is a mining community. There's a lot of population mobility. And so there have been concerns about, A, their ability to contain this in that region, but then also the fact that people travel around so much, and so raising the level right there in DRC to very high, but they're also concerned about the region.

[13:20:13]

We have seen two cases who traveled from DRC to Uganda. One of those people died. However, they're saying they haven't seen further spread in Uganda at this point. And then, of course, as you noted, they're not talking about this as having pandemic risk. However, it is possible that people will travel to other countries and we might see other cases there, as we did, of course, in 2014.

Now, as you noted, right now, there are about 750 suspected cases, 177 suspected deaths. But folks don't think that they have the whole scope of what's going on with this outbreak. And, of course, we know that it was likely spreading for perhaps months before they detected it just at the end of last week.

Now, they did talk this morning in a WHO briefing about potential interventions. And there are actually some monoclonal antibody treatments that are closer on the horizon, that they're actually starting to talk about a clinical trial they're going to run in the DRC.

So those are two different monoclonal antibody treatments. They also have an antiviral drug that they're talking about using as what's called post-exposure prophylaxis, so, actually, people who've been exposed, giving them this pill to try to prevent them developing Ebola.

Omar, it's not enough, but at least the tool kit is not completely empty.

JIMENEZ: Meg Tirrell, really appreciate the reporting. Good to see you.

All right, coming up for us, breaking news. We have just learned the director of national intelligence, Tulsi Gabbard, has resigned. This just happened, getting this news in moments ago. We're going to take a quick break, but we will have all the details just on the other side of it.

Stay with us.

(COMMERCIAL BREAK)

[13:25:59]

SANCHEZ: We're following breaking news into CNN.

Director of National Intelligence Tulsi Gabbard is resigning after about 15 months in the role of the director of national intelligence.

JIMENEZ: Yes, we want to get straight to the White House and bring in Kevin Liptak with the latest.

What are we hearing right now?

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yes.

And this is a significant departure. We do now understand that Tulsi Gabbard has informed President Trump of her decision to resign from the administration. And what she is telling associates is that she is stepping down because her husband is confronting a rare form of cancer.

And so that is her rationale for stepping back from this very, very critical role at a very critical moment, as the U.S. remains at war with Iran, as President Trump weighs restarting the bombing campaign inside that country. This will be a significant departure for the administration, and so Tulsi Gabbard telling the president today that she does plan to resign and that she's stepping aside for this ultimately very personal reason, which is her husband's health.

Now, that being said, this has been quite a tumultuous tenure, I think, for Tulsi Gabbard over the course of this second Trump administration. There had been clear points throughout the last year- and-a-half when she did seem to diverge with what the president was trying to do. She came to this job with a very clear anti-war background.

She herself is a veteran. She talked before she was in this job, when she was a congresswoman from Hawaii, about not starting foreign wars, specifically about not starting wars with Iran. And over the course of this conflict, she really did not have a very visible role whatsoever in confronting the Iran threat.

She had been essentially cut out of some of those conversations. The president did seem to task her with some different roles. You will remember she was down in Fulton County, Georgia, when the FBI was raiding a voting office there. It was sort of a strange sight to see the DNI down in Georgia when the FBI was conducting that raid.

She also put out a report sort of downplaying the role of election meddling from Russia, both of those, I think, meant to put her in the president's good graces. But, despite all of that, there had been these clear tensions. And so now we're understanding that she is going to be leaving the administration.

We do not yet know at this point who may replace her. This is a very, very critical job. You know it was created in the aftermath of 9/11 to try and coordinate all of the government's intelligence stream. So, at particularly a tense moment, it will be critical to get this job filled, but, at least for now, Tulsi Gabbard saying that she will no longer be the director of national intelligence.

SANCHEZ: Yes, especially as the United States is at war in the Middle East, it's notable that the director of national intelligence is departing.

Let's go to Brian Todd.

Brian, obviously, this was a tumultuous tenure. And before she served in the administration, her entire political career up until 2022, she was a Democrat, and she was sort of noninterventionist. She spoke out against U.S. foreign policy.

Then, in 2024, she flipped to the Republican Party and served the president, obviously, who's been more aggressive, not only in Iran, but in Venezuela and in Cuba as well. It's notable that her vision of U.S. foreign policy not exactly aligning with President Trump's.

BRIAN TODD, CNN CORRESPONDENT: That's right, Boris and Omar. That is correct.

And it is unusual for a director of national intelligence to leave office basically at the height of tensions with Iran and as this conflict has not come to a full resolution as of yet. It is -- it's striking that she's leaving during that period.

And, again, not only -- to emphasize what Kevin said, he emphasized that she's been controversial in a number of ways, as what Kevin mentioned, when she went down to Georgia in January, taking a look at what was going on there and trying to help with this investigation into alleged voter fraud in Georgia.

That really turned a lot of heads simply because that was not supposed to be her role as the director of national intelligence.