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Trump's defense choice stuns the Pentagon and raises questions about the Fox News host's experience

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Trump's defense choice stuns the Pentagon and raises questions about the Fox News host's experience
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Trump's defense choice stuns the Pentagon and raises questions about the Fox News host's experience

2024-11-14 03:17 Last Updated At:03:20

WASHINGTON (AP) — President-elect Donald Trump stunned the Pentagon and the broader defense world by nominating Fox News host Pete Hegseth to serve as his defense secretary, tapping someone largely inexperienced and untested on the global stage to take over the world's largest and most powerful military.

The news was met with bewilderment and worry among many in Washington as Trump passed on a number of established national security heavy-hitters and chose an Army National Guard officer well known in conservative circles as a co-host of Fox News Channel’s “Fox & Friends Weekend.”

While some Republican lawmakers had a muted response to the announcement, others called his combat experience an asset or said he was “tremendously capable.”

Hegseth's choice could bring sweeping changes to the military. He has made it clear on his show and in interviews that, like Trump, he is opposed to “woke” programs that promote equity and inclusion. He also has questioned the role of women in combat and advocated pardoning service members charged with war crimes.

In June, at a rally in Las Vegas, Trump encouraged his supporters to buy Hegseth’s book and said that if he won the presidency, "The woke stuff will be gone within a period of 24 hours. I can tell you.”

The 44-year-old Hegseth, a staunch conservative who embraces Trump's “America First” policies, has pushed for making the military more lethal. During an interview on “The Shawn Ryan Show” podcast, he said allowing women to serve in combat hurts that effort.

“Everything about men and women serving together makes the situation more complicated, and complication in combat, that means casualties are worse,” Hegseth said.

And while he said diversity in the military is a strength, he said it was because minority and white men can perform similarly but the same isn't true for women.

By opening combat slots to women, “we’ve changed the standards in putting them there, which means you’ve changed the capability of that unit,” Hegseth said in the podcast interview.

Since then-Defense Secretary Ash Carter opened all combat roles to women in 2016, women have successfully passed the military's grueling tests to become Green Berets and Army Rangers, and the Naval Special Warfare's test to serve as a combatant-craft crewman — the boat operators who transport Navy SEALs and conduct their own classified missions at sea.

While Trump lauded Hegseth as “tough, smart and a true believer in America First,” others were quick to point to the TV personality's lack of experience. Some suggested he could be Pentagon chief in name only as the Trump White House runs the department.

A number of other names floated as possible defense choices had included Rep. Mike Rogers, R-Ala., chairman of the House Armed Services Committee; retired Lt. Gen. Keith Kellogg; Sen. Joni Ernst, R-Iowa; and Robert Wilkie, a former Pentagon official who was head of the Department of Veterans Affairs in Trump's first term.

“There is reason for concern that this is not a person who is a serious enough policymaker, serious enough policy implementer, to do a successful job,” said Rep. Adam Smith of Washington, the ranking Democrat on the House Armed Services Committee.

Mark Cancian, a senior adviser at the Center for Strategic and International Studies, said Hegseth's lack of senior national security experience makes it more difficult to get Senate confirmation.

“I think Trump was tired of fighting with his secretaries of defense and picked one who would be loyal to him,” Cancian said.

Military officials said the choice came out of the blue. A senior military officer, who spoke on condition of anonymity because they were not authorized to talk to the media, said Hegseth's selection is raising concerns about whether he has the practical experience to manage a large department with an enormous budget.

The Defense Department has a budget exceeding $800 billion, with about 1.3 million active-duty troops and another 1.4 million in the National Guard, Reserves and civilian employees based worldwide.

If confirmed, Hegseth would face a daunting array of global crises, from the wars in the Middle East and Ukraine and the expanding alliance between Russia and North Korea to the growing competition with China. There is also the need to upgrade the complex U.S. missile and nuclear defense apparatus and ensure the defense industry can keep up with America's need for weapons systems.

Smith said that while Hegseth's combat experience is a plus, running the Pentagon requires a lot of other skill sets, and his nomination will need some time for consideration.

“What’s your plan? What are you going to do? ... How can you assure us that that lack of experience, you know, isn’t going to make it impossible for you to do the job?” Smith said. “I think those are questions that need to be answered over the next couple of months.”

Even some Republicans in the Senate, who would vote on his nomination, had a subdued response.

North Carolina Sen. Thom Tillis called the choice “interesting.” Indiana Sen. Todd Young, who served in the Marine Corps, said, “I don’t know much about his background or his vision, so I look forward to learning more.”

North Dakota Sen. John Hoeven said he’s not surprised that Trump chose Hegseth because Trump is “close to him and likes him and trusts him.”

“The guy’s obviously tremendously capable, a great communicator," Hoeven said. "I look forward to getting to know him better.”

House Speaker Mike Johnson, R-La., said Hegseth brings a lot to the table and will be "reform-minded in the areas that need reform.”

Hegseth has been a contributor since 2014 for Fox News, developing a friendship with Trump, who made regular appearances on his show. He is the author of “The War on Warriors: Behind the Betrayal of the Men Who Keep Us Free.”

“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.”

Associated Press writers Jill Colvin in New York and Lisa Mascaro, Mary Clare Jalonick and Farnoush Amiri contributed to this report.

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 - 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 - President Donald Trump appears on Fox & Friends co-host Pete Hegseth at a Wounded Warrior Project Soldier Ride event in the East Room of the White House in Washington, Thursday, April 6, 2017. (AP Photo/Andrew Harnik, File)

File - President Donald Trump appears on Fox & Friends co-host Pete Hegseth at a Wounded Warrior Project Soldier Ride event in the East Room of the White House in Washington, Thursday, April 6, 2017. (AP Photo/Andrew Harnik, File)

Trump's defense choice stuns the Pentagon, raises questions about the Fox News host's experience

Trump's defense choice stuns the Pentagon, raises questions about the Fox News host's experience

Trump's defense choice stuns the Pentagon, raises questions about the Fox News host's experience

Trump's defense choice stuns the Pentagon, raises questions about the Fox News host's experience

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Stock market today: Wall Street drifts after inflation update comes in as expected

2024-11-14 03:15 Last Updated At:03:20

NEW YORK (AP) — U.S. stocks are edging higher and hovering around their records Wednesday after the latest inflation update boosted hopes that more help for the economy will arrive next month from another cut to interest rates.

The S&P 500 rose 0.3% in afternoon trading, coming off its first loss since before Election Day last week. The Dow Jones Industrial Average was up 133 points, or 0.3%, as of 2:04 p.m. Eastern time, and the Nasdaq composite was 0.3% higher.

Stocks got support from easing yields in the bond market. The yield on the two-year Treasury, which closely tracks expectations for actions by the Federal Reserve, fell to 4.29% from 4.34% late Tuesday. The yield on the 10-year Treasury rose to 4.45% from 4.43% late Tuesday. Treasury yields mostly fell after a report said the inflation that U.S. consumers felt last month was exactly as economists expected. It accelerated to 2.6% from 2.4%, but an underlying measure called “core inflation” did not accelerate. Economists say core inflation can be a better predictor of future trends.

“Bang in-line core inflation leaves the Fed on track to cut rates in December,” according to Lindsay Rosner, head of multi sector fixed income investing at Goldman Sachs Asset Management.

The Fed began cutting interest rates from their two-decade high in September to offer support for the job market, hoping to keep it humming after bringing inflation nearly all the way down to its target of 2%. It cut again earlier this month, and traders now see an improved probability of roughly 82% that it will cut a third time in roughly a month, according to data from CME Group.

The question is what will happen in 2025. Prior forecasts published by the Fed implied it could keep cutting rates through next year. But Donald Trump’s victory in the presidential election may have scrambled those plans. Economists say his preferences for lower tax rates, higher tariffs and less regulation could ultimately lead to higher U.S. government debt and inflation, along with faster economic growth.

While lower interest rates can give a boost to the economy and to prices for investments, they can also give inflation more fuel.

Still, Wednesday’s data was reassuring for the market following a run of stronger-than-expected data on the economy, which could have signaled upward pressures on inflation.

“The market may be concerned that we are at an inflection point, with inflation potentially returning to an upward trajectory,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “We see inflation modestly higher next year. We don’t think today’s CPI data will do much to the market.”

On Wall Street, Rivian Automotive jumped 16.2% after the electric-vehicle company gave more details about a joint venture it's entering with Volkswagen Group that they had previously announced.

The deal’s total size could be worth up to $5.8 billion, which is more than the $5 billion the companies had previously said. The deal includes a $1.3 billion cash payment from Volkswagen to Rivian for licensing of background intellectual property and a 50% stake in the joint venture.

Spirit Airlines’ stock lost 57.1%. The airline said in a regulatory filing that it’s still trying to work out a deal to renegotiate the repayment of its debt, and if it can reach an agreement, it could wipe out the company’s stockholders. But it could also protect employees and customers.

Other airlines were among the market's leaders, including gains of 1.9% for Southwest Airlines and 1.1% for United Airlines.

In stock markets abroad, Japan’s Nikkei 225 fell 1.7% after its wholesale inflation rate reached its highest level since July of last year. South Korea’s Kospi sank 2.6% after Samsung Electronics shares fell to their lowest level in over four years.

Indexes were modestly lower across much of the rest of Asia and Europe.

In the crypto market, bitcoin crossed above $90,000 as cryptocurrencies generally soared. Trump has embraced cryptocurrencies and pledged to make his country the crypto capital of the world.

Dogecoin, a cryptocurrency that’s been a favorite of Tesla’s Elon Musk, jumped earlier in the day, but was mostly unchanged in afternoon trading, according to CoinDesk. Trump named Musk as one of the heads of a “Department of Government Efficiency,” or DOGE for short.

AP Writer Zimo Zhong contributed.

FILE - A sign marking the intersection of Broadway and Wall Street is shown in New York's Financial District on Oct. 30, 2024. (AP Photo/Peter Morgan, File)

FILE - A sign marking the intersection of Broadway and Wall Street is shown in New York's Financial District on Oct. 30, 2024. (AP Photo/Peter Morgan, File)

A pair of traders work in their booth on the floor of the New York Stock Exchange, Thursday, Nov. 7, 2024. (AP Photo/Richard Drew)

A pair of traders work in their booth on the floor of the New York Stock Exchange, Thursday, Nov. 7, 2024. (AP Photo/Richard Drew)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person rides a bicycle in front of an electronic stock board showing Japan's Nikkei index and US dollar/Japanese Yen exchange rate at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person rides a bicycle in front of an electronic stock board showing Japan's Nikkei index and US dollar/Japanese Yen exchange rate at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

Person walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

Person walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

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