Return to Transcripts main page
Connect the World
Fed Chair Nominee Kevin Warsh Confirmation Hearing; U.S.-Israel War with Iran; How Trump's Use of Social Media Impacts Iran Negotiations; Trump Accuses Iran of Violating Ceasefire; E.U. Responds, Does Not "Oversee the Influence" of Turkiye. Aired 10-11a ET
Aired April 21, 2026 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[10:00:00]
(MUSIC PLAYING)
BECKY ANDERSON, CNN HOST (voice-over): We are looking at live pictures from Capitol Hill as Fed chair nominee Kevin Warsh faces his first major
test in a highstakes confirmation hearing set to begin in just a few minutes. It is 10 am there in Washington. It is 6 pm here in Abu Dhabi. I'm
Becky Anderson.
Welcome to the second hour of the show from our Middle East programming headquarters.
And we will be monitoring that event in Washington and bringing you key moments throughout this hour, because it could help decide the future of
the world's most powerful central bank as the global economy, of course, struggles to handle the fallout of the war with Iran.
And on that crisis, the world waiting to see if JD Vance will even leave Washington for Islamabad for talks or whether they stall again amid
continued public threats and mistrust between Washington and Iran.
(MUSIC PLAYING)
ANDERSON: Ready for a deal but ready to resume attacks. The U.S. president talking today in the past couple of hours about what will be a critical
next 1.5 days as we await the imminent departure of the U.S. vice president and his negotiating team to Pakistan for a possible second round of peace
talks with Iran.
In a phone interview with CNBC, Donald Trump said he expects the U.S. to be bombing Iran again if a deal isn't reached by his Wednesday night Eastern
time deadline. He also said he doesn't want to extend the ceasefire and implied that the Iranians would be at the table in Islamabad for what could
be last ditch talks. Have a listen.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: Well, I don't want to do that. We don't have that much time, because by the time both
parties
get there, as you know, they just got the OK to go forward, which I do, they were going to do anyway.
I mean, I don't think they had a choice. They have to negotiate. And, you know, the one thing I'll say is this, Iran can get themselves at a very
good footing if they make a deal. They can make themselves into a strong nation again, a wonderful nation again.
(END VIDEO CLIP)
ANDERSON: Iranian state media reporting no Iranian delegation has entered Pakistan. Iran's leaders have voiced skepticism about negotiations, with
the parliament's speaker saying that his country won't negotiate under the shadow of threats.
We've got Stephen Collinson with us this hour from Washington. Jeremy Diamond is in Tel Aviv.
Stephen, less than 24 hours before the ceasefire is due to end. You write that president Trump risks falling into his own trap from the art of the
deal, his business memoir, of course, by quote, "seeming desperate to make a deal."
Is the president running out of time?
And does Iran have the upper hand at this point?
Is it clear?
STEPHEN COLLINSON, CNN WHITE HOUSE CORRESPONDENT: I don't think Iran necessarily has the upper hand but it does have a hand and a quite strong
one at that. And I'm not sure that the administration -- or the president, at least -- appreciates that.
If you look at the messaging from the White House, most of the time when Trump is not already announcing deals, which haven't been agreed by the
Iranians, he's calling for complete capitulation, the handover of all enriched uranium, the opening of the strait and Iran gets very little in
return.
I think that reflects the mindset among certain people in the administration that, because the U.S. has overwhelming military strength,
that it has won the war and it's up to Iran to cede its position now.
But, of course, the Strait of Hormuz and Iran's control over it gives it certain leverage. Trump, I think, has sent messages that may be interpreted
in Iran as he really wants a deal. He wants to get out of this for political reasons.
And that's why, on the one hand, he's making the case that a deal is very easy to happen and may well happen, perhaps to placate the markets, but
also threatening great violence on Iran if it doesn't do a deal. It's a somewhat one-dimensional negotiating strategy, I think.
ANDERSON: Let me bring Jeremy in.
At this point, if no agreement is reached -- and you know, that is a real possibility here.
[10:05:00]
How real is the risk of escalation once this ceasefire expires?
And it's been quite clear. I mean, it was due to expire Tuesday night Eastern time. Donald Trump has extended that. The advertised date is now 24
hours later than that. So we're talking about Wednesday evening Eastern time.
And is Israel waiting on standby effectively at this point?
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Yes, I think you could characterize it that way. I mean, there's no question that both United
States and Israel are prepared to return to a wartime footing should negotiations with Iran collapse, should there be a decision not to extend
this current ceasefire.
President Trump has made quite clear that he is prepared to return to bombing Iran immediately. On CNBC this morning, he talked about the fact
that the U.S. military has all of its preparations in place in order to be able to, you know, return to that that type of positioning.
From the Israeli perspective, I think it's doubly as clear that that is the case, because we know that president Trump was the party kind of dragging
Israel along into this ceasefire agreement.
The Israeli prime minister and his advisers have repeatedly indicated that they still feel like there was, you know, was and is a lot more to do still
in Iran from a military perspective. They have a lot more targets.
You know, you'll recall that, when that ceasefire went into effect two weeks ago, Israel was also at the time prepared for the other fork in the
road, which was bombing Iran's civilian and energy infrastructure across the country. A whole list of targets had already been prepared for that.
And presumably that list of targets is still alive and well at Israel's defense ministry and Israeli fighter pilots are prepared to carry out that
mission. So, we'll see, you know, whether or not that comes to pass.
I think we're still very clearly on the precipice of either, you know, a massive regional escalation here, the return to bombardment, Iranian fire
being directed back at Israel as well as countries in the Gulf.
And perhaps with added firepower now that they've had a couple of weeks to reconstitute and also to reposition some of their missile launchers, many
of which are hidden away inside of Iran.
So, you know -- or on the other hand, again, the possibility of a real potential agreement here, memorandum of understanding between the two
sides, that could ultimately lead to a broader nuclear agreement and an end to this war altogether. It's just really hard to tell at this point which
fork in the road is going to be the one that's chosen.
ANDERSON: Yes. I don't think it's an overstatement to suggest this is a region on a knife's edge. One source has just said to me, you know, behind
the scenes, it really is, at this point, wait and see. And these next 36 hours are absolutely crucial.
Stephen, we've got to talk about Truth Social in all of this.
I mean, how much is Donald Trump's real-time use of social media, publicly discussing terms, shifting positions, announcing details that clearly
aren't agreed yet, how much is that undermining these negotiations with Iran?
Or perhaps it's, you know, very much a, you know, a position that Donald Trump enjoys and may work. I don't know, you tell me. And I wonder whether
this doesn't, though, turn serious diplomacy into performance.
COLLINSON: Yes. And I think both of those things could be true. The president has spent basically the last week negotiating with himself on
Truth Social, putting out completely opposite and contradictory positions.
I know that there are people in the White House who would prefer that he didn't do this. We have a very good piece up on our website by Kevin Liptak
and Alayna Treene this morning, which suggests that some officials are worried that this could directly prejudice the negotiations.
If you think about it, if you are an Iranian negotiator, you're in, by definition, a somewhat difficult political spot. The last thing you want,
if you're showing up to talks, is the impression to be sent to your masters in Tehran that you've already done a deal that the president is now
announcing to the rest of the world.
That is a very vulnerable position to be in. So that could hurt the process of negotiations.
The other thing I think is that this suggests a lot of these posts suggest that Trump doesn't really have a plan, that he is of a somewhat erratic
range of moods at this point. And if you look at the history of negotiations with Iran and nuclear negotiations in particular, these take
months and years. These are delicate, they're intricate.
They're talking about centrifuges and enriched uranium and nuclear physics. This is not something that can be well done across Truth Social.
[10:10:02]
One of the principles of negotiating is that you try to give your adversary a way out, a way to back away without being humiliated. Trump's posts make
that a lot more difficult.
I think it's fair to question whether the tactics that he used, to secure land leases in New York when he was a real estate developer or to
intimidate Republican congressmen on social media inside the United States, if that is really going to work with the hard men inside Iran, that will
ultimately decide whether there's a deal.
ANDERSON: It's remarkable, isn't it?
It's a new era, new type of diplomacy. Certainly, we can describe it as that. We've got a new verb. Donald Trump has just truthed. It does seem
remarkable.
It's good to have you both. Thank you.
Be sure to read Stephen's analysis online.
He writes that the president's very public narrative on peace efforts are, quote, "hardly offering a poker face to Iran's negotiators or the real
powers behind them back in Tehran, who, unlike Trump, are in the shadows and silent."
That is on CNN. All access available on the CNN app.
Let's bring in Mohammad Ali Shabani now. He's editor of Amwaj.media. Got a real sense of what is going on in Iran. Very well sourced.
Just break down for our viewers.
For Iran, what are the key points of friction now in these U.S.-Iran talks that are, to some -- we are watching the dateline Islamabad -- to some, you
know, we are expecting these to happen for the second time?
So just walk us through what we can expect.
MOHAMMAD ALI SHABANI, EDITOR, AMWAJ.MEDIA: So I think it's useful to divide things up between obstacles to negotiations actually being held and
then obstacles to the success of negotiations.
When it comes to obstacles to negotiations being held, I think the most obvious obstacle is president Trump's naval blockade. As I stated
previously, I believe personally it's a fig leaf to be able to declare success.
But I think it makes it very difficult for Iran to have a way out. The terms of the truce that they have right now, the terms of the ceasefire
that's due to expire later this week, is essentially that Iran were to open the Strait of Hormuz and the Trump administration to make sure there's a
ceasefire in Lebanon.
This is more or less the grand scheme of things. What's happened subsequent to the announcement of the ceasefire is that president Trump has announced
that all countries can use Hormuz except Iran. Iran is under a blockade.
So obviously Iran is not going to accept that. They're saying that this waterway is, you know, we control it. We're not going to agree to a
situation whereby everybody can use it except us. So that's the number one obstacle right now to holding these actual negotiations.
And I think the both sides are trying to work out a face-saving way forward. I think Trump is not going to drop the blockade. On the other
hand, Iran probably wants some kind of concession from the U.S., possibly the release of crew members of this ship that the U.S. forces seized the
other day.
Mohammad, I'm going to have to leave it there for the time being, because I have got some other news that I need to go to out of the U.S. It is
important. The U.S. Senate Banking Committee is holding a hearing this hour to confirm the president's pick to be the next Fed Reserve chair. This
would be Kevin Warsh.
Thank you.
The ranking member on the committee, Democrat Elizabeth Warren, is speaking. Let's just listen in.
SEN. ELIZABETH WARREN (D-MA), RANKING MEMBER, SENATE BANKING COMMITTEE: The president has repeatedly and illegally attempted to take over the Fed.
His bogus attacks on Governor Lisa Cook and Chair Powell were designed to threaten all the members of the Fed to do Trump's bidding and open more
spots for Trump flunkies.
Why try to end the independence of the Fed?
Because Trump's economic failures are causing him political problems and he wants the Fed to use monetary policies to artificially juice the economy in
the short- term and this is his last chance to do that before the November elections.
Having a sock puppet in charge of the Fed would also give the president access to the Fed's powerful authorities to enrich himself, his family and
his Wall Street buddies. It could mean granting special accounts to his family's crypto company or bailouts to his friends on Wall Street if they
get into trouble. In other words, a Fed under Donald Trump's control creates more opportunities for Trump's corruption.
Third, the nominee before us today, Kevin Warsh, is uniquely I'll- suited for the job as Fed chair. In our meeting last week, we discussed the 2008
financial crash where 8 million people lost their jobs.
[10:15:04]
Ten million people lost their homes and millions more lost their life savings. Giant banks, however, got hundreds of billions of in bailouts.
Mr. Warsh was a Fed governor from 2006 to 2011. That's before, during and after the crash. And he said to me that he has no regrets about anything he
did.
So let's take a deeper dive into Mr. Warsh's record. In the years leading up to the 2008 financial crisis, he was an enthusiastic cheerleader for
credit default swaps and complex securitizations.
He dismissed repeated and increasingly urgent concerns from housing advocates across the country regarding subprime mortgages. He refused to
use the Fed's authorities to address the risks that were building in the financial system.
And when the crisis hit and the economy blew, Warsh took on the job of Wall Street's personal liaison on the Fed board. He was quick to respond to
concerns from Wall Street CEOs and he worked tirelessly to arrange multi- billion dollar bailouts for them with nothing for American families. No regrets, he says No regrets.
After the crash, most people on the Fed saw millions of Americans, unemployed people who had lost their homes and said, now might be a good
time to lower rates and make the cost of borrowing cheaper for businesses to avoid more layoffs and make it cheaper for Americans who are worried
about paying their mortgages or their credit cards.
But not Mr. Warsh, nope. He wanted to keep interest rates high. And he sang the same song for more than a decade, even as the economy struggled.
When the job of Fed chair became available during Trump's first term as president, Warsh held on to his high interest rate inflation hawk views and
Trump passed him by. Regretful, he soon reversed course and called for the Fed to pause interest rate hikes.
Then once Trump left office, Mr. Warsh flipped again and was even criticizing the Fed for cutting rates in the fall of 2024.
But as soon as Donald Trump became president a second time, Warsh reversed himself once more and began shouting from the rooftops about how the Fed
should cut interest rates. Evidently, he learned his lesson. This time around, he sucked up to Donald Trump to snag his dream job.
Mr. Chairman, last week, every single Democratic member of this committee asks that you postpone this hearing and instead conduct oversight on the
president's role in directing bogus criminal probes into Chair Powell and Governor Cook.
The Senate should not be aiding and abetting Donald Trump's illegal takeover of the Fed by installing his chosen sock puppet as chair. It's an
invitation for corruption and for economic catastrophe. We have the power to stop it and we should be using that power.
Thank you, Mr. Chairman.
SEN. TIM SCOTT (R-SC), CHAIR, SENATE BANKING COMMITTEE:: Well, there you have it. I'll just say it. It is interesting that we're going to hear from
Senator Dave McCormick and his introduction of Kevin Warsh was last time unanimously confirmed by the United States Senate, unanimously confirmed by
the U.S. Senate.
Dave, the floor is yours.
SEN. DAVE MCCORMICK (R-PA): Thank you, Mr. Chairman, Ranking Member Warren, distinguished colleagues. It's really a great honor to introduce my
friend, Kevin Warsh and welcome him and Jane here today. Kevin has been a friend for many years.
Winston Churchill observed that for great leaders, there comes and I quote, a special moment where they are figuratively tapped on the shoulder and
offered the chance to do a very special thing. What a tragedy, he warned, if that moment finds them unprepared --
ANDERSON: All right, you've been listening to the hearing of Donald Trump's nominee to run the Federal Reserve. Elizabeth Warren, a progressive
senator on the left side of the aisle, was forceful in her opening statement about Warsh's extremely pro-business background.
We're going to get back there for the key moments throughout this next hour.
[10:20:00]
We will continue to monitor that for you. Taking a quick break back after this.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
ANDERSON: Welcome back. You're watching CONNECT THE WORLD with me, Becky Anderson. Time here in the UAE is 6:20.
U.S. president Donald Trump's pick to lead the Federal Reserve is in a high-stakes confirmation hearing right now with lawmakers on Capitol Hill.
Those are live images. And he will be introduced to the floor shortly.
CNN's David Goldman following this story for us from New York.
Before the break, we heard the opening statement of a very fired-up Elizabeth Warren, talking about Kevin Warsh doing flip-flops, you know,
when Donald Trump was president. He was thinking one thing about monetary policy. And when he went, he thought another thing about monetary policy.
Basically suggesting that he's cozied up to Trump to get his, as she described it, "dream job."
Will Kevin Warsh feel the need to respond to criticism of what is his extremely pro-business background?
DAVID GOLDMAN, CNN BUSINESS SENIOR REPORTER: He has to, right, because the big question that faces Kevin Warsh during this confirmation hearing is who
is going to lead the Federal Reserve?
Is it going to be you or is it going to be Donald Trump?
Right now, the flip-flopping is the most interesting thing that I know not only Elizabeth Warren but other Democrats are going to be asking about.
Historically, Kevin Warsh, when he was on the Fed earlier last decade, he was an inflation hawk.
That means that he preferred higher interest rates to combat inflation versus lower interest rates that could promote job growth.
So why the change and why the change now when the Fed is contending with higher prices again because of tariffs in the Iran war?
So he will definitely have to answer for that.
ANDERSON: Perhaps you've answered this next question but I'm going to ask it anyway.
Why is Warsh Trump's pick?
There were others.
GOLDMAN: Yes. So I think that there were some questions around the other leading candidate. Trump used to talk about the two Kevins. There was Kevin
Warsh and Kevin Hassett, who is the one of his top economic advisors. Kevin Hassett had a tendency to go on air --
(CROSSTALK)
ANDERSON: David, let me interrupt you. Apologies. I do want to get to Warsh. He's about to speak. Let's listen in.
SCOTT: Do you agree to appear and testify before any duly constituted committee of the Senate?
KEVIN WARSH, FEDERAL RESERVE CHAIR NOMINEE: I do.
SCOTT: You may sit down, your written statement will be made part of the record in its entirety.
[10:25:00]
Please keep your oral comments to five minutes. Mr. Warsh, you're now recognized.
WARSH: Thank you, Mr. Chairman. I appreciate your consideration today. I've known you for quite a while and I certainly appreciate the many
courtesies you've given me, not just since the Presence nomination but long before. It's an honor to be with you, with Ranking Member Warren and with
the entire committee.
I'm deeply grateful to President Trump for asking me to take on this public trust, because that's what it is, a public trust. The president believes
that real economic growth in the U.S. and real take home pay will accelerate.
I share the president's confidence in our country and its people. America's economic growth potential is rising as we sit here today.
I'm also especially happy that my wife, Jane, is here. She has been with me for many of the most important moments in my life. I'm grateful for her
love and her personal accomplishments. I reciprocate that with somewhat of my own love, though I'm a little more stoic than she.
And about every 20 years, I reintroduce her to this committee. She sat behind me 20 years ago and it was almost 20 years ago to the day and so let
me offer today what I said then, Jane, happy anniversary.
I'm also thinking of my late mom and dad. They were paying great attention to this hearing 20 years ago. They're no longer with us but I was always
proud of them and the values they taught me and I hope they'd be proud of me today.
We start today with a note of broad agreement, even though we might have heard different narratives at the outset of this hearing. This is a time of
great consequence for the nation's economy.
As a former Fed governor and friend or colleague of the last five Fed Chiefs, from whom I've learned plenty of lessons, I'm particularly alert to
the challenges and opportunities confronting the institution that I cherish, the Federal Reserve.
To the president, to the Congress, the nation, I owe my best judgment and my most faithful efforts in serving the mission that you and Congress
assigned to the Federal Reserve, including full employment and stable prices. The American people are counting on the Fed to deliver on its
commitments perhaps now more than ever.
The real highlights of my life are not on my resume, as Senator McCormick said. They include the individuals with whom I worked and from whom I
learned. I graduated from high school in Upstate New York.
I had some exceptional teachers there and some brilliant classmates. I've learned we're lucky in life if we start out with good influences in
learning and in character. A public school education gave me both of those and I'm grateful.
I made my way to Stanford and found myself in the company of some of the most highly accomplished economists and policymakers.
George Schultz, former secretary of state and treasury, was among the great patriots at the Hoover Institution who I came to know as a teacher, mentor
and friend. He passed away right after COVID at age a hundred but I still feel him with me.
I could not have imagined a better formative experience than working from and learning from folks like him. I could tell you about all the things I
learned but maybe the most important was to be around people completely devoted to the ideas and ideals of our country.
Silicon Valley in the early '90s, another fitting backdrop for all the things we confront today, I found myself in the right place at the right
time. The U.S. was at the vanguard of a new era of technological leadership and I just looked out my door to see it.
And in the last 15 years, I've gained deep experience in macro and in markets working with Stan Druckenmiller. He never held a position in
government but is no less a patriot. He never got a PhD in economics but I don't know a finer economic thinker.
Without their guidance and the guidance of Condi Rice, my friend and I should say, my boss at the Hoover Institution. I doubt I would be sitting
before you today as the president's Fed chairman nominee.
But I'm certain of one thing absent their tutelage, absent their example, I would not be as prepared for the urgent mission critical task at hand.
In between these bookend experiences, I served quite a while ago as a governor at the Federal Reserve, at the birth, at the onset of the
financial crisis. As Senator Warren said, our central bank played an indispensable role.
[10:30:00]
And we benefited enormously from the credibility that our predecessors had built up and passed down to us governors of the Fed at the time.
In these unusual and exigent circumstances, I saw the Fed and its people at their very best but I also witnessed an institution that was tempted to
play a larger role in the economy and society.
So let me be very clear. Monetary policy independence is essential. Monetary policy makers must act in the nation's interest.
Their decisions, the product of rigor, deliberation and unclouded decision making and, as Senator Warren said, I do not believe that independence of
monetary policy is threatened when elected officials state their views on rates. Fed independence is up to the Fed that has three implications.
First, Congress is tasked with the mission to ensure price stability. Inflation is the Fed's choice.
Second, Fed independence is at its peak in the conduct of monetary policy.
And third, as the chairman said, the Fed must stay in its lane. I'm committed to ensuring that the conduct of monetary policy remains strictly
independent, equally committed to work with the administration and Congress on non-monetary matters that are part of the Fed's remit. And I commit
myself to accountability.
Finally, I'll just say this, Mr. Chairman. Milton Friedman had a phrase that always stayed with me. He always worried about government officials
that lured and hung around with what he called the tyranny of the status quo. Status quo practices and policies are especially harmful when the
world is changing this fast.
If confirmed as chairman, I will be faithful to the Constitution, to the Federal Reserve Act and to the very best of the Fed's traditions. I believe
a reform-oriented Fed can make a real difference to the American people.
And if confirmed, I will seek to create an environment in which the best people do their best work. Candor and goodwill will go a long way in
pursuing those objectives and I suspect this hearing, Mr. Chairman, will put us to the test. It's a real privilege to be here.
SCOTT: Thank you, sir. I will say that we typically stick to a five-minute opening comments. I would encourage all --
ANDERSON: Kevin Warsh giving testimony facing senators as the U.S. president's Fed chairman nominee. Jerome Powell's term, of course, ends in
some 24 days.
He said this is a time of great consequence for the economy. I owe my best judgment to all in serving the mission that has been given to the Fed.
Monetary policy independence, he said, is essential. Policymakers must act in the country's interest.
Much criticism from the left that this is a Trump plant, a president who wants to see interest rates lower. And, you know, the question of
independence of this Federal Reserve has certainly been questioned over the past months.
We will continue to monitor this event, get back to it as lawmakers ask Warsh some of the tough questions about how he plans to operate in what is
this critical economic leadership role.
For now, though, I do want to take a very quick break and return with an important conversation that should shed some light on the efforts to bring
the U.S. and Iranian delegations back to the table in Islamabad.
I'm going to speak to the chief foreign policy advisor to the Turkish president, who has been working behind the scenes on those efforts. That
conversation is up next.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
[10:35:00]
(MUSIC PLAYING)
ANDERSON: Despite president Donald Trump's insistence that Iran will come back to the table, Iranian state media are reporting no Iranian delegation
has entered Pakistan and Iran's leaders have voiced skepticism about potential second round talks. The parliament speaker saying his country
won't negotiate under the shadow of threats.
Well, let's discuss with Akif Kilic now, chief foreign policy and security advisor to the president of Turkiye.
It's really good to have you, sir. Thank you very much indeed for joining us. Your country has been a key partner with Pakistan in mediating.
What is Turkiye's understanding of where these ceasefire talks stand right now?
AKIF KILIC, CHIEF FOREIGN POLICY AND SECURITY ADVISER TO RECEP TAYYIP ERDOGAN, PRESIDENT OF TURKIYE: Thank you very much.
First of all, it's Turkiye. As you know, we have officially changed our name and we are referring to our country as Turkiye now in the English
language, just to remind you of that as well.
In the general situation, in the general situation, it is, of course, talks and the effort to bring all parties together are still continuing. In that
sense, Pakistan, Turkiye and some Gulf countries and also Egypt are trying to bring together the different parties in order to negotiate.
It's an evolving process, as you know. And as you just mentioned, it can be very lively, develop (ph). Our hope still is that all the parties will take
part in the efforts that are being put together by our Pakistani friends.
Because as far as we know, the first round that has happened was successful under the circumstances. So we are hoping that this will continue.
OK. This is your foreign minister, Mr. Fidan's comments on the ceasefire. Let's have a listen.
(BEGIN VIDEO CLIP)
HAKAN FIDAN, TURKISH FOREIGN MINISTER (through translator): A two-week- long ceasefire is good but the file before them is so comprehensive that it won't be possible to resolve all these issues in two weeks. Therefore, a
new extension will be needed. Hopefully, this extension will come.
I am optimistic about that but some issues need to be clarified. We see that the negotiations have largely been completed, hopefully. But there are
still differences of opinion on one or two very critical issues.
(END VIDEO CLIP)
ANDERSON: Donald Trump has literally just told CNBC he does not want to extend the ceasefire.
So does Ankara believe those one or two critical issues, as referred to there, can be resolved in time?
And what exactly are those key issues as you understand them?
KILIC: Well, of course, there are some issues that are privy to the negotiation process and the negotiators who are involved and also to the
facilitators. There's a lot of topics just like our foreign minister mentioned that have to be addressed.
We are hoping that these kinds of topics that have to be addressed can be addressed in a manner which will yield results. And I think the reference
toward a solution that my foreign minister is making, of course, is that we are hopeful that we can achieve this.
And we have seen, I think, in the past month now, during the during the conflict that has arisen, sometimes the results can be achieved very
quickly. Sometimes there is lesser time needed. Sometimes there's more time needed.
But there is a dynamic in the negotiations, in the process. So if you look at it, for one time, you will remember we thought that we will not have a
ceasefire. And then it did happen. It's -- it is under strain. I can agree with that.
But we will continue vigorously to work toward trying to find a solution to all the problems that are causing what is happening today.
ANDERSON: I wonder what kind of preparations are being discussed, where you are, if this conflict were to restart?
I mean, I understand the NATO secretary general is in Ankara today.
[10:40:00]
Iran is believed to have targeted Turkiye four times at the beginning of this conflict, which did raise fears of triggering Article V involvement by
NATO.
What can you tell us?
KILIC: Secretary general Rutte is -- will be in Ankara tomorrow. I don't know if he has arrived already in Turkiye but he will have a meeting with
President Erdogan tomorrow. He will be received by him tomorrow in Ankara.
Of course, the matters will be on the table. We will be discussing the upcoming NATO summit, which is to take part in the beginning of July in
Ankara, here in Turkiye. So that will be on the table.
And, of course, during this conflict that has arisen, there has been some also targeting of the Turkish airspace. However, we have to bear in mind
that the Iranian side has denied that they have engaged Turkiye's territory in any way.
So we have, of course, as a NATO member and a NATO ally, been able to stop these kinds of interventions. But we will continue --
(CROSSTALK)
ANDERSON: To push you on that point, because it wasn't clear, let me -- let me just press you on that point. Iran said it hadn't fired at Turkiye.
Turkiye got fired on.
So if it wasn't Iran and you accept that, who was it?
KILIC: Well, like I said, we only know that Turkish airspace was entered. We have taken down the projectiles. No harm was done, thankfully, to the
Turkish -- to the Turkish border in the sense that it hasn't done any harm in human way or in material damage.
So we are going to look forward in the future. What is going to be an investigation will, of course, take place on that.
ANDERSON: So no intelligence as of yet. That's what you're saying. But an investigation ongoing into who it was who actually did fire those missiles.
KILIC: Well, as far as we know, we know where it originated from, on the technical issues. But like I said, if our Iranian neighbors are saying we
didn't do it, then we have to try to understand what has been happening.
And obviously during a time where conflict is still lively and active, you can't do the full investigation. But we will look to it in the future.
ANDERSON: Interesting. OK. The president of the European Commission, Ursula von der Leyen, told a German newspaper on Monday, and I quote her
here, "We must succeed in completing the European continent so it is not shaped by Russian, Turkish or Chinese influence. We must think bigger and
geopolitically."
What is your response to that?
KILIC: Well, interesting that you should ask me that because I have just exited a meeting and came to this presentation. And I just received word on
my way that this kind of a report is there or a newspaper article or news. I haven't been able to look into it as of yet. So I can't answer you on
that part.
But, I'm pretty sure that Turkiye, as a NATO member and ally, is also -- and a country which is in the full negotiation process with the European
Union for full membership -- is on its way for the future. And we know where we're going.
But, like I said, you would have to ask von der Leyen, Ms. Von der Leyen, on this question. I can't answer it right now because I have just received
information that something like this was said, if it's even said -- I don't --
ANDERSON: We should expect a response, though, one assumes at some point, as soon as you've been able to get a clear read, correct?
KILIC: Exactly. I haven't been able to look into it. We've been in -- so I have to first look into it and read it and understand it and then I can
make a response. But right now, I'm not in a position to reply to that because I don't know what has been said or has not been said.
ANDERSON: It does seem remarkable, do you not think?
KILIC: Sorry?
ANDERSON: It does seem remarkable that she would have suggested that Turkiye, along with China and Russia, should be kept from influencing the
European space.
KILIC: Well, like I said, I'm really not sure. I'm not at the -- I don't have the information if this is what she said or if this is something else,
in what context or why it has been said. So it would be -- it would be wrong for me to make any assumption or reply on this. If I knew it, I would
give you my observation on it.
[10:45:00]
But I can't do it right now.
ANDERSON: Understood. Let's get back to the conflict at present.
While the Strait of Hormuz chokes the global economy, Tokyo is in a strategic position as an overland route to Europe. And we have seen the
country sign an agreement with Jordan and Syria for a railway project moving forward with a trade corridor from Iraq to Europe.
What is Turkiye's vision for the region after the conflict with Iran, as we look beyond -- well, let's hope that there is a, you know, a long tail to
this soon.
As we look beyond, what's the vision here?
KILIC: Well, of course, you know, we could take this in this sense. Even when the conflict, the internal conflict in Syria started some 14-15 years
ago, we were always saying that the region that we are living in, that we are based in, should be a region for prosperity and peaceful coexistence.
And now our aim is obviously that all of our neighbors do have a good understanding with each other, that the natural resources that we have in
the region are shared by the whole of humanity.
But, of course, that the region that we are living in and the people who are actually providing these resources to the world, both natural gas or
oil or other natural resources, that we, for example, we have to also bear in mind that water is a natural resource, which is very important in our
region as well.
So the coexistence and shared with all the resources that we have here should be at the highest level. We should be able to trade and also
security wise and, socially, live very peacefully with each other. That's the aim.
To achieve that, you need connectivity. To achieve that, you need to have people traveling toward each other. Just take an example in the European
Union.
I mean, as much as they can travel with each other, as long as the borders are not up and open, people get to know each other and the prosperity
follows with that, with free trade and free movement. So that's the general understanding that we have.
Everybody has something else to bring to the table. All countries have their own capabilities and works that they can do.
ANDERSON: Can I just ask you, finally, because we are seeing the shifting of some alliances, it's been really interesting to watch the sort of,
tectonic shifts during this conflict and indeed before around this region.
Turkiye's meeting with Egypt, Saudi Arabia and Pakistan at the Antalya diplomacy forum, where we saw Fidan speaking just earlier on in this
interview, is Ankara considering joining a defensive pact with those allies?
KILIC: We are obviously trying to have a deeper cooperation with all our neighbors and allies. Pakistan has been a longstanding ally of Turkiye even
before anything like this happened. As you know, we have increased our cooperation and ties with Saudi Arabia and also with other countries.
And, of course, in the developments of Turkiye's industry, which also includes the defense industry, as you know, where we have made a lot of
leaps forward there, it's just natural that we also cooperate on a lot of different levels of industrial output, which also includes defense
industry.
And we are trying to have, like I said, we are trying to have a better understanding and working together with each other, which I think is shared
by our partners and allies also in the region.
It doesn't mean that we are trying to move away from something else. But building on top of it, increasing your alliance, your share of cooperation
with others, is also something positive, I believe.
ANDERSON: Fascinating. It's good to speak to you, sir. Very much appreciate your time. Very interesting to see what the response to the
Ursula von der Leyen words are when you provide them. Thank you very much indeed.
And we will be right back.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
[10:50:00]
(MUSIC PLAYING)
ANDERSON: We've been monitoring a hearing on Capitol Hill. Here is progressive Democrat senator Elizabeth Warren quizzing Donald Trump's pick
for the next Fed chair just moments ago. Have a listen.
WARREN: So the Fed has been plagued by deeply disturbing ethics scandals in recent years, involving at least six Fed officials. So it's critical
that the next chair have no financial conflicts. None.
You have more than $100 million in investments that you have refused to disclose to ethics officials and to the public.
So let me ask, do the Juggernaut Fund or the THSDFS LLC invest in any companies affiliated with president Trump or his family, companies that
have facilitated money laundering, Chinese-controlled companies or financing vehicles established by Jeffrey Epstein?
WARSH: Senator Warren, thank you. So let me first share a point of agreement with you. The Fed has two tools. One is its monetary policy and
the second is its credibility. And the scandals that you talked about, the ethics problems you talked about --
(CROSSTALK)
WARSH: -- went to the core of the credibility that has hurt the --
WARREN: Could you answer my question, please?
I asked, you have $100 million in undisclosed assets.
And what I'm asking is, are any of those with this outfit that invests in U.S. companies affiliated with president Trump or his family, companies
that have facilitated money laundering, Chinese-controlled companies or financing vehicles set up by Jeffrey Epstein?
It's a yes or no question.
WARSH: Senator, I have worked tirelessly with the ethics officials at the Office of Government --
WARREN: Yes. And you have not --
(CROSSTALK)
WARSH: And I've agreed, Senator, to sell --
(CROSSTALK)
WARREN: -- refusing to tell us if you have investments, for example, in vehicles set up to advance Jeffrey Epstein?
Is that what you're telling us?
You just won't tell us?
WARSH: Senator, what I'm telling you is that those assets that you represent at Juggernaut will be sold if I'm confirmed before --
(CROSSTALK)
WARREN: Let me follow up on that.
Will you at least disclose how you plan to disclose and divest these secret assets?
I'm sure you understand that the public might question your motives if, for example, billionaire Stanley Druckenmiller, who you honored in your opening
statement and who makes a living guessing what the Fed will do next, cuts you a massive check for $100 million as you take the oath of office to
become the new Federal Reserve chair.
WARSH: Senator, as you know, it sounds like you're fight might not be with me but the Office of Government Ethics. I have come to full agreement with
them and have agreed to divest all of those assets --
(CROSSTALK)
WARSH: -- especially those that you referenced before I take the oath of office.
WARREN: And that is, will you disclose how you divest those assets?
Or will you just collect a check for $100 million from someone whose whole business is betting on what the Fed will do?
WARSH: As I said to the ethics officials at the Federal Reserve and the Office of Government Ethics --
WARREN: I'll take -- I'll take that as a no as well.
WARSH: Redeeming my assets before --
WARREN: -- Trump has made clear that he does not want an independent Fed.
In fact, he has said, and I quote, "Anybody that disagrees with me will never be Fed chairman."
And he's made clear that you are his sock puppet, saying last week that interest rates will drop, quote, "when Kevin gets in."
Yes, I think they do. Not when economic conditions change we'll get lower rates, not when the economy needs it. Nope, he said when my guy, Kevin
Warsh, is in there, we'll get the interest rates that I, Donald Trump, wants.
[10:55:00]
So independence takes courage. Let's check out your independence and your courage. We'll start easy.
Mr. Warsh, did Donald Trump lose the 2020 election?
WARSH: We try to keep politics -- if I'm confirmed -- out of the Federal --
WARREN: I'm just asking you a factual question. I need to know. I need to measure your independence and your courage.
WARSH: Senator, I believe that this body certified that election many years ago.
WARREN: That's not the question I'm asking.
I'm asking did Donald Trump lose in 2020?
WARSH: And I'm suggesting you --
(CROSSTALK)
WARREN: -- can't answer that.
WARSH: -- huge inflation problem. And you certified the election.
WARREN: So let me ask another --
WARSH: -- out of monetary policy.
WARREN: In our meeting, you had said you would be independent because you're, a, quote, "a tough guy."
Those were your words, "tough guy."
And you will be able to stand up to president Trump. So let's try it again. Name one aspect of president Trump's economic agenda with which you
disagree.
WARSH: Well, Senator, the Federal Reserve in recent years has wandered outside of its remit, wandered into other --
WARREN: I'm asking for something --
WARSH: That's not something I'm prepared to do.
WARREN: -- Trump on.
WARSH: If I'm confirmed --
(CROSSTALK)
WARSH: -- the Federal Reserve should stay in its lane.
WARREN: Just one. Just one little place where you disagree with Donald Trump.
WARSH: Well, I do have a disagreement, actually, Senator, with the president. I think even this morning he said that he thought I was out of
central casting. I think central casting. I'd look older, grayer, maybe show up here with a cigar of sorts.
WARREN: Quite adorable. But you know, we need a Fed chair who is independent. That's the only way we preserve the independence of the
Federal Reserve. If you can't answer these questions, you don't have the courage and you don't have the independence --
WARSH: I agree with you on independence, Senator --
ANDERSON: Senator Warren grilling Donald Trump's pick for the Federal Reserve chair.
That's it for CONNECT THE WORLD. Stay with CNN, though. "ONE WORLD" is up next.
[11:00:00]
END
