Trump Administration Sees Threat in Growing Foreign Spy Bases in Cuba

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0:30Kevin Warsh is sworn in as the new chair of the Federal Reserve. Plus, U.S. Intel warns that Russia and China are using Cuba to increase their spying on the U.S. There's no question that the cooperation between the Cubans, the Chinese, and Russians would be part of the explanation to the American people for why they continue to be tough on Cuba. And Tulsi Gabbard becomes the latest Trump administration official to leave her post. It's Friday, May 22nd. I'm Alex Osola for The Wall Street Journal. This is the PM edition of What's News, the top headlines and business stories that move the world today.

1:13Kevin Warsh was sworn in today as the new chair of the Federal Reserve. The ceremony was at the White House, making Warsh the first Fed chair to take the oath there in decades. The last one was Alan Greenspan in 1987. Supreme Court Justice Clarence Thomas administered the oath. And that I will well and faithfully discharge. And that I will well and faithfully discharge. The duties of the office on which I'm about to enter. The duties of the office on which I'm about to enter. So help me God. So help me God. Warsh is taking the top spot at the central bank during a difficult economic moment. Inflation is rising.

1:54A growing number of investors say the Fed's next move could be a rate increase, not the cut that President Trump wanted and that Warsh was hired to deliver. Trump today stressed that the Fed should operate free from political influence. I want Kevin to be totally independent. I want him to be independent and just do a great job. Don't look at me. Don't look at anybody. Just do your own thing and do a great job. But then, moments later, he laid out the view he wants Warsh to take, that a booming economy doesn't need to be reined in, and that strong growth doesn't cause inflation. We want to stop inflation, but we don't want to stop greatness.

2:30Separately, one of President Trump's cabinet members is leaving the administration, Director of National Intelligence Tulsi Gabbard. In a letter to Trump later posted on social media, Gabbard says she's resigning because her husband has bone cancer. Her last day is June 30th. Her departure caps a tumultuous tenure. She was largely sidelined from President Trump's national security operations, including those in Venezuela and Iran. She is the latest high-profile departure from the administration. The list includes Homeland Security Secretary Kristi Noem, Attorney General Pam Bondi, Labor Secretary Lori Chavez de Reamer, and the head of the FDA, Marty McCary.

3:06Gabbert's deputy Aaron Lucas will serve as the acting National Intelligence Director.

3:15Turning to conflicts overseas, in the Middle East, mediators have been racing to make a deal that would bridge gaps between the U.S. and Iran. Pakistan and other regional countries involved in talks are trying to head off U.S. and Israeli strikes on Iran. Middle East officials say that without a diplomatic breakthrough, strikes could happen within days. Strikes would aim at economic targets like energy infrastructure. They're intended to pressure Iran into a deal. Iran has warned it would retaliate after an attack. In an exclusive, the Journal has learned that Russia and China have in recent years expanded their intelligence operations in Cuba.

3:49They've invested in electronic eavesdropping facilities used to spy on U.S. military sites in Florida. The intelligence assessment comes at a time when the Trump administration has declared Cuba, quote, an unusual and extraordinary threat to U.S. national security. WSJ national security reporter Alex Ward joins me now from Washington. Alex, Chinese and Russian presence in Cuba isn't exactly new. The journal has reported on this before. How significant is this increase that we just learned about? It matters in large part because it shows that the Chinese and the Russians are investing more in that capability.

4:23And that could give them a greater shot at collecting information and mostly unclassified communications from U.S. Southern Command and U.S. Central Command, which are based in Florida. We should also note that, of course, President Trump has some personal properties in Florida, although no indication necessarily that they're picking up stuff from there. And while Washington is known for a while that the Chinese and Russians have set up these sites in Cuba, that the fact that they're expanding them and improving them and setting more personnel just sort of fuels the Trump administration's public case for potentially dislodging the regime in Havana.

4:55What do all of the countries involved here say about this reporting? When we spoke to the Chinese embassy, they were like, effectively, hey, The Chinese-Cuban relationship is already out in the open. The Russians have denounced the U.S.'s tough stance towards Cuba. And Cuban officials deny that the island serves as a base for American enemies or threatens the U.S. So where does the U.S. go from here? I mean, CIA Director John Ratcliffe last week went down to Cuba and was basically like, hey guys, work with us, change your regime, change your economy, do a bunch of reforms, sever the ties with the Chinese and Russians, dot, dot, dot, or else.

5:29So does that mean more sanctions? Does that mean an attack down the line? I have no indications of an imminent attack on Cuba, although we have seen the Trump administration be somewhat blunt about that point. There's no question that the cooperation between the Cubans, the Chinese and Russians would be part of the explanation to the American people for why they continue to be tough on Cuba and may order a military intervention. That was WSJ national security reporter Alex Ward. Thanks, Alex. Thanks for having me.

6:00At home, the Trump administration has announced a new policy on green cards, its latest attempt to tighten the screws on legal forms of immigration. Previously, most people applied for green cards within the U.S. Now, most will have to apply for permanent residency overseas at a U.S. consulate. Leaving the country means they risk losing whatever legal status they held, and it could mean they can't return to the U.S. It also could mean a much longer process to get residency. The change will have a big impact on immigrants who are in the U.S. illegally, but it will also affect foreign professionals sponsored by U.S.

6:33companies. Coming up, the latest on the Ebola outbreak, the celebrity makeup artist who derailed a beauty merger, and how some people are changing their long weekend plans because of high prices. Those stories and more after the break.

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7:22A multi-billion dollar deal between Estee Lauder and Spanish beauty company Pooch has fallen apart. The journal has learned that one big reason was celebrity makeup artist Charlotte Tilbury. Pooch has a controlling stake in her cosmetics company, also called Charlotte Tilbury. People familiar with the matter said that Tilbury was trying to negotiate her buyout. It became an issue for both Estee Lauder and Pooch because Tilbury's demands would have materially affected the transaction's economics. Tilbury couldn't be reached for comment. The two companies said they had called off their discussions.

7:55In markets, optimism about AI and tech stocks drove investors. The Dow led the gains. The index rose 0.6 % and closed at a record, its ninth record high of the year, and the S &P climbed for its eighth straight week. Heads up that we dropped a special bonus episode earlier today. In the latest What's News and Earnings, we look at NVIDIA's blistering growth in its latest quarter and the growing competition that it faces. That's in your What's News feed now.

8:25An Ebola outbreak in the Democratic Republic of the Congo and Uganda is already the third largest in history. The World Health Organization reported this morning that there are 750 suspected cases and 177 suspected deaths in the DRC from the disease. Betsy McKay covers public health for the journal, and it's here now with more. Betsy, is Ebola spreading quickly? It is spreading, but the other probably bigger issue is that this virus spread undetected for weeks. So there are many, many people who have had Ebola or been exposed to it or are developing symptoms now who just haven't been detected.

9:02I'm reminded of the last big Ebola outbreak in 2014. How does this outbreak differ? Like, is the virus itself different? There are a lot of things that are different. First, the area is actually much more volatile. This is an area full of displaced people. It's an area full of mining, so lots of traffic in and out. The other big difference is this one is caused by a rare strain. It's only been seen in two outbreaks before. It does appear to be less deadly than the Zaire Ebola virus that caused the West African epidemics. The World Health Organization this past weekend declared the outbreak a global health emergency.

9:43What has been the response to the outbreak from the Trump administration and from other global officials? The Trump administration has said that it has deployed responders to the area from the CDC and others who are experts in containing outbreaks. The WHO also has really dug in. The problem is that it's also really hard under the current conditions to get aid to the country. And we should note that the Journal exclusively reported this afternoon that the Trump administration is pausing visas for travelers who have been to African countries affected by the outbreak. Betsy, how big a threat is Ebola to the U.S.?

10:23The CDC says the risk is low and the U.S. has this whole network of specialized treatment centers. If somebody were to get sick, they would be sent to one of those centers and isolated. And Ebola, as deadly as it is, is not really hugely contagious compared to COVID or the flu. It's not airborne. You can't get it just from standing next to somebody with Ebola. You really need to touch their bodily fluids. There is some concern about people coming into this country because we're about to host World Cup events. But those are the reasons that screening measures have been put into place. WSJ senior writer Betsy McKay, thank you so much for the update.

11:06Thank you.

11:10And finally, it's Friday evening and the start of Memorial Day weekend, the unofficial start of summer. But this year, people who usually cook out or go out are finding they're going to have to shell out. I'm curious to hear what other people's plans are because I haven't gotten any invites to Memorial Day cookouts this year. Personal finance reporter Dalvin Brown heard all about it. So I spoke to one person who hoped to have 30 people over and she had a new barbecue grill that she got as a wedding gift and could not wait to celebrate with everyone. And then she saw the price of ground beef and was like, I cannot buy that beef for 30 people.

11:48Instead, she's now just going to cook hot dogs and she's going to ask her guests to each bring a dish. I spoke to another family who would typically go on a road trip to see the in-laws. And because of the price of gas and the cost of groceries, they're just going to stay home and pluck stuff from the garden. And there was another person who hoped to get invited to a couple of barbecues. And he said this year no one's having them. He hasn't gotten a single invite. So he's staying home as well. And that's what's news for this week. Tomorrow you can look out for our weekly markets wrap-up, What's News in Markets?

12:25We'll be off on Sunday and Monday for Memorial Day. And we'll be back with our regular show on Tuesday morning. Today's show was produced by Danny Lewis and Alexis Moore with supervising producer Tali Arbel. Michael LaValle wrote our theme music. Aishael Muslim is our development producer. Chris Zinsley is our deputy editor. And I'm Alex Osula. Have a great weekend and thanks for listening.

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