Trump builds out national security team with picks of Hegseth for Pentagon, Noem for DHS

WEST PALM BEACH, Fla. (AP) — President-elect Donald Trump moved to build out his national security team Tuesday, announcing he is nominating Fox News host and Army veteran Pete Hegseth to serve as his defense secretary and former Director of National Intelligence John Ratcliffe to lead the Central Intelligence Agency.

In a flurry of announcements, Trump said he had chosen former Arkansas Gov. Mike Huckabee as ambassador to Israel and his longtime friend Steven Witkoff to be a special envoy to the Middle East. Trump also said he would nominate South Dakota Gov. Kristi Noem to run the Department of Homeland Security and named Bill McGinley, his Cabinet secretary in his first administration, as his White House counsel.

Trump is rolling out a steady stream of appointees and nominees for his upcoming administration, working thus far at a faster pace and without as much drama as his first transition following his 2016 victory. His selection of Hegseth, who lacks senior military or national security experience, was sure to draw questions about his qualifications to lead the department.

Hegseth, 44, is a co-host of Fox News Channel’s “Fox & Friends Weekend” and has been a contributor with the network since 2014, where he developed a friendship with Trump, who made regular appearances on the show.

If confirmed by the Senate, he would inherit the top job during a series of global crises — ranging from Russia’s war in Ukraine and the ongoing attacks in the Middle East by Iranian proxies to the push for a cease-fire between Israel, Hamas and Hezbollah and escalating worries about the growing alliance between Russia and North Korea.

Hegseth is also the author of “The War on Warriors: Behind the Betrayal of the Men Who Keep Us Free," published earlier this year, and has been outspoken about rooting out what he has called “woke-ness” in the military.

The book, according to its promo, combines “his own war experiences, tales of outrage, and an incisive look at how the chain of command got so kinked,” and bills itself as “the key to saving our warriors — and winning future wars.”

While the Pentagon is considered a key coveted post in any administration, the defense secretary was a tumultuous post during Trump’s first term. Five men held the job during his four years only to resign, be fired or serve briefly as a stopgap. Just two of them were actually confirmed by the Senate.

Trump’s relationship with his civilian and military leaders during those years was fraught with tension, confusion and frustration, as they struggled to temper or even simply interpret presidential tweets and pronouncements that blindsided them with abrupt policy decisions they weren’t prepared to explain or defend. Many of the generals who worked in his first administration — both on active duty and retired — have slammed him as unfit to serve in the Oval Office and he has condemned them in return.

Hegseth was an infantry captain in the Army National Guard and served overseas in Afghanistan, Iraq and Guantanamo Bay, Cuba. He was formerly head of the Concerned Veterans for America, a group backed by conservative billionaires Charles and David Koch, and he unsuccessfully ran for the Senate in Minnesota in 2012.

He also championed the case of four former Blackwater contractors convicted in a 2007 shooting rampage in Baghdad that killed more than a dozen Iraqi civilians. They were pardoned by Trump in one of his final acts in office.

“With Pete at the helm, America’s enemies are on notice — Our Military will be Great Again, and America will Never Back Down,” Trump said in a statement. “Nobody fights harder for the Troops, and Pete will be a courageous and patriotic champion of our ‘Peace through Strength’ policy."

Hegseth has “an excellent background as a junior officer but does not have the senior national security experience that secretaries need,” said Mark Cancian, a senior advisor at the Center for Strategic and International Studies. “I think Trump was tired of fighting with his secretaries of defense and picked one who would be loyal to him.” Cancian said the lack of experience might make it more difficult for Hegseth to get through Senate confirmation.

Noem is a well-known conservative and former member of Congress who used her two terms leading a state to vault to a prominent position in Republican politics. She was considered a potential presidential contender herself, but declined to challenge Trump. She instead launched an overt pitch to be selected vice president but lost that nod when Trump chose JD Vance as his running mate.

If confirmed, Noem would head an agency that is at the center of Trump’s sweeping immigration plans and his campaign vow to carry out mass deportations of immigrants in the United States illegally. There are an estimated 11 million people in the country illegally.

The Department of Homeland Security is a sprawling agency of 260,000 employees created in the wake of the Sept. 11 attacks with a vast area of responsibility. It was patched together from 22 various agencies with the weighty task of preventing future attacks and is the subject of constant suggestions that it is too unwieldy and should be broken up.

Ratcliffe, a former Republican congressman from Texas, served as director of national intelligence for the final months of Trump’s first term, leading the U.S. government’s spy agencies during the coronavirus pandemic. He is a more traditional pick for the role, which requires Senate confirmation, than some rumored loyalists pushed by some of Trump's supporters.

Huckabee is a staunch defender of Israel, and his intended nomination comes as Trump has promised to align U.S. foreign policy more closely with Israel’s interests as it wages wars against Hamas in Gaza and Hezbollah in Lebanon. Witkoff is a Florida real estate investor who is serving as a chair of Trump’s inaugural committee. He also spent time in the world of New York real estate, where Trump first made his mark as a public figure.

As intelligence director, Ratcliffe was criticized by Democrats for declassifying in the final days of the 2020 presidential election Russian intelligence alleging damaging information about Democrats during the 2016 race even though he acknowledged it might not be true.

Ratcliffe's visibility rose as he emerged in 2019 as an ardent defender of Trump during the House’s first impeachment proceedings against him. He was a member of Trump’s impeachment advisory team and strenuously questioned witnesses during the impeachment hearings.

After the Democratic-controlled House voted to impeach Trump, Ratcliffe said, “This is the thinnest, fastest and weakest impeachment our country has ever seen.” He also forcefully questioned former special counsel Robert Mueller when he testified before the House Judiciary Committee about his investigation into Russian interference in the 2016 election.

“I look forward to John being the first person ever to serve in both of our Nation’s highest Intelligence positions,” Trump said in a statement. “He will be a fearless fighter for the Constitutional Rights of all Americans, while ensuring the Highest Levels of National Security, and PEACE THROUGH STRENGTH.”

Huckabee has led paid tour group visits to Israel for years, frequently advertising the trips on conservative-leaning news outlets.

“Mike has been a great public servant, Governor, and Leader in Faith for many years,” Trump said in a statement. “He loves Israel, and the people of Israel, and likewise, the people of Israel love him. Mike will work tirelessly to bring about Peace in the Middle East!”

David Friedman, who served as Trump's ambassador to Israel in his first term, said he was “thrilled” by Trump's selection of Huckabee.

Witkoff is also the president-elect’s golf partner and was with him when he was the target of a second assassination attempt at his golf club in West Palm Beach, Florida, in September.

Trump's transition team did not offer details about the Middle East envoy role, but Trump said in a statement, “Steve will be an unrelenting Voice for PEACE, and make us all proud.”

The selection of Witkoff follows a pattern for Trump in putting people close to him in pivotal roles on the Middle East portfolio. Eight years ago he appointed his former corporate attorney Jason Greenbaltt as his special representative for international negotiations and relied on his son-in-law, Jared Kushner, as his personal envoy in talks in the region.

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Miller reported from Washington and Colvin reported from New York. Lolita C. Baldor, Rebecca Santana and Tara Copp in Washington contributed.

FILE - Republican presidential nominee former President Donald Trump and South Dakota Gov. Kristi Noem dance to the song "Y.M.C.A." at a campaign town hall at the Greater Philadelphia Expo Center & Fairgrounds, Oct. 14, 2024, in Oaks, Pa. (AP Photo/Matt Rourke, File)

FILE - South Dakota Gov. Kristi Noem speaks before Republican presidential nominee former President Donald Trump at a campaign town hall, Oct. 14, 2024, in Oaks, Pa. (AP Photo/Matt Rourke, File)

FILE - Pete Hegseth walks to an elevator for a meeting with President-elect Donald Trump at Trump Tower in New York, Dec. 15, 2016. (AP Photo/Evan Vucci, File)

FILE - Former Director of National Intelligence John Ratcliffe, testifies before a hearing April 18, 2023, on Capitol Hill in Washington. (AP Photo/Manuel Balce Ceneta, File)

FILE - Gov. Mike Huckabee, R-Ark., takes questions from the media, prior to laying a brick at a new housing complex in the West Bank settlement of Efrat, Aug. 1, 2018. President-elect Donald Trump will nominate former Arkansas Gov. Mike Huckabee as ambassador to Israel. Trump said Tuesday that Huckabee is a staunch defender of Israel and his intended nomination comes as Trump has promised to align U.S. foreign policy more closely with Israel’s interests as it wages wars against Hamas in Gaza and Hezbollah in Lebanon.(AP Photo/Oded Balilty, File)

FILE - Gov. Mike Huckabee, R-Ark., takes questions from the media, prior to laying a brick at a new housing complex in the West Bank settlement of Efrat, Aug. 1, 2018. President-elect Donald Trump will nominate former Arkansas Gov. Mike Huckabee as ambassador to Israel. Trump said Tuesday that Huckabee is a staunch defender of Israel and his intended nomination comes as Trump has promised to align U.S. foreign policy more closely with Israel’s interests as it wages wars against Hamas in Gaza and Hezbollah in Lebanon.(AP Photo/Oded Balilty, File)

Republican presidential nominee former President Donald Trump talks with former Arkansas Gov. Mike Huckabee during a roundtable at the Drexelbrook Catering & Event Center, Tuesday, Oct. 29, 2024, in Drexel Hill, Pa. (AP Photo/Julia Demaree Nikhinson)

NEW YORK (AP) — What a wonderful year 2024 has been for investors.

U.S. stocks ripped higher and carried the S&P 500 to records as the economy kept growing and the Federal Reserve began cutting interest rates.

The year featured many familiar winners, such as Big Tech, which got even bigger as their stock prices kept growing. But it wasn't just Apple, Nvidia and the like. Bitcoin, gold and other investments also drove higher.

Here's a look at some of the numbers that defined the year. All are as of Dec. 20.

Remember when President Bill Clinton got impeached or when baseball's Mark McGwire hit his 70th home run against the Montreal Expos? That was the last time the U.S. stock market closed out a second straight year with a leap of at least 20%, something the S&P 500 is on track to do again this year. The index has climbed 24.3% so far this year, not including dividends, following last year's spurt of 24.2%.

The number of all-time highs the S&P 500 has set so far this year. The first came early, on Jan. 19, when the index capped a two-year comeback from the swoon caused by high inflation and worries that high interest rates instituted by the Federal Reserve to combat it would create a recession. But the index was methodical through the rest of the year, setting a record in every month outside of April and August, according to S&P Dow Jones Indices. The latest came on Dec. 6.

The number of times the Federal Reserve has cut its main interest rate this year from a two-decade high, offering some relief to the economy. Expectations for those cuts, along with hopes for more in 2025, were a big reason the U.S. stock market has been so successful this year. The 1 percentage point of cuts, though, is still short of the 1.5 percentage points that many traders were forecasting for 2024 at the start of the year. The Fed disappointed investors in December when it said it may cut rates just two more times in 2025, fewer than it had earlier expected.

That’s how many points the Dow Jones Industrial Average rose by the day after Election Day, as investors made bets on what Donald Trump’s return to the White House will mean for the economy and the world. The more widely followed S&P 500 soared 2.5% for its best day in nearly two years. Aside from bitcoin, stocks of banks and smaller winners were also perceived to be big winners. The bump has since diminished amid worries that Trump’s policies could also send inflation higher.

The level that bitcoin topped to set a record above $108,000 this past month. It's been climbing as interest rates come down, and it got a particularly big boost following Trump's election. He's turned around and become a fan of crypto, and he's named a former regulator who’s seen as friendly to digital currencies as the next chair of the Securities and Exchange Commission, replacing someone who critics said was overly aggressive in his oversight. Bitcoin was below $17,000 just two years ago following the collapse of crypto exchange FTX.

Gold's rise for the year, as it also hit records and had as strong a run as U.S. stocks. Wars around the world have helped drive demand for investments seen as safe, such as gold. It's also benefited from the Fed's cut to interest rates. When bonds are paying less in interest, they pull away fewer potential buyers from gold, which pays investors nothing.

It's a favorite number of Elon Musk, and it's also a threshold that Tesla's stock price passed in December as it set a record. The number has a long history among marijuana devotees, and Musk famously said in 2018 that he had secured funding to take Tesla private at $420 per share. Tesla soared this year, up from less than $250 at the start, in part because of expectations that Musk's close relationship with Trump could benefit the company.

That's how much revenue Nvidia made in the nine months through Oct. 27, showing how the artificial-intelligence frenzy is creating mountains of cash. Nvidia's chips are driving much of the move into AI, and its revenue through the last nine months catapulted from less than $39 billion the year before. Such growth has boosted Nvidia's worth to more than $3 trillion in total.

GameStop’s gain on May 13 after Keith Gill, better known as “Roaring Kitty,” appeared online for the first time in three years to support the video game retailer’s stock, which he helped rocket to unimaginable heights during the “ meme stock craze ” in 2021. Several other meme stocks also jumped following his post in May on the social platform X, including AMC Entertainment. Gill later disclosed a sizeable stake in the online pet products retailer Chewy, but he sold all of his holdings by late October.

That's how much the U.S. economy grew, at annualized seasonally adjusted rates, in each of the three first quarters of this year. Such growth blew past what many pessimists were expecting when inflation was topping 9% in the summer of 2022. The fear was that the medicine prescribed by the Fed to beat high inflation — high interest rates — would create a recession. Households at the lower end of the income spectrum in particular are feeling pain now, as they contend with still-high prices. But the overall economy has remained remarkably resilient.

This is the vacancy rate for U.S. office buildings — an all-time high — through the first three quarters of 2024, according to data from Moody's. The fact the rate held steady for most of the year was something of a win for office building owners, given that it had marched up steadily from 16.8% in the fourth quarter of 2019. Demand for office space weakened as the pandemic led to the popularization of remote work.

That's the total number of previously occupied homes sold nationally through the first 11 months of 2024. Sales would have to surge 20% year-over-year in December for 2024's home sales to match the 4.09 million existing homes sold in 2023, a nearly 30-year low. The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. A shortage of homes for sale and elevated mortgage rates have discouraged many would-be homebuyers.

FILE - A sign for a Nvidia office building is shown in Santa Clara, Calif., on Aug. 7, 2024. (AP Photo/Jeff Chiu, File)

FILE - The Tesla Cybercab is shown at the AutoMobility LA Auto Show, on Nov. 21, 2024, in Los Angeles. (AP Photo/Jae C. Hong, File)

FILE - Construction workers frame a new single-family home on Dec. 6, 2024, in Owensboro, Ky. (AP Photo/Charlie Riedel)

FILE - People walk past the New York Stock Exchange on Nov. 26 2024. (AP Photo/Peter Morgan, File)