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DOJ Releases over 3 Million Files from Epstein Investigation; U.S. Enters Partial Shutdown as Funding Lapses; Kyiv Gets a Break as Russia Pauses Strikes until Sunday; Iran Ready for "Fair and Just" Nuclear Talks; Don Lemon Vows to Fight Charges Related to Covering Minnesota Church Protest; Kevin Warsh Picked to Chair Federal Reserve; Lindsey Vonn Vows Olympic Dream not over after Crash. Aired 4-5a ET

Aired January 31, 2026 - 04:00   ET

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

[04:00:00]

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KIM BRUNHUBER, CNN ANCHOR AND CORRESPONDENT (voice-over): Welcome to all of you watching us here in the United States, Canada and around the world. I'm Kim Brunhuber. This is CNN NEWSROOM.

Department of Justice releases millions of documents in the Epstein files. But some Epstein victims are decrying the redactions that are supposed to protect them.

Part of the U.S. government has shut down for the second time in president Donald Trump's second term.

How long until the wheels start rolling again?

And Ukraine's president Volodymyr Zelenskyy warns the next round of trilateral talks may have to be postponed. Despite that, there's a temporary pause in the strikes on Kyiv.

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UNIDENTIFIED MALE (voice-over): Live from Atlanta this is CNN NEWSROOM with Kim Brunhuber.

BRUNHUBER: Weeks after a deadline imposed by law, the U.S. Justice Department released more than 3 million files from its investigation into late financier and sex offender Jeffrey Epstein. The DOJ says the release fulfills its obligations under transparency legislation passed by Congress.

Now CNN is still going through all that information but we can tell you about this key takeaway. The heavily redacted document contains references to a host of powerful figures, including president Donald Trump. Now he hasn't been charged with any crime related to Epstein and has long denied any wrongdoing.

The deputy attorney general said lawmakers will have access to unredacted files but he also said he didn't believe information in the files would bring unknown perpetrators to justice. Here he is. (BEGIN VIDEO CLIP)

TODD BLANCHE, DEPUTY ATTORNEY GENERAL: I don't know whether there are men out there that abused these women, if we learn about information and evidence that allows us to prosecute them, you better believe we will. But I don't think that the public or you all are going to uncover men within the Epstein files that abused women, unfortunately.

And to ensure transparency, if any member of Congress wishes to review any portions of the responsive production in any unredacted form, they are welcome to make arrangements with the department to do so. And we're happy to do that.

(END VIDEO CLIP)

BRUNHUBER: CNN's senior correspondent MJ Lee is in Washington with more on what's in the files, including those mentions of the U.S. president.

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MJ LEE, CNN SENIOR NATIONAL ENTERPRISE CORRESPONDENT: He is in these files with some frequency. His name is mentioned in a bunch of different contexts.

But one thing that was noteworthy, from what we learned from these batch of files that were released today, is that there appears to have been internal discussions inside the FBI as recently as last summer, where they were discussing allegations of abuse leveled against Donald Trump and Jeffrey Epstein.

We are talking about this one document where FBI officials are compiling a list, basically, of allegations of abuse leveled against Donald Trump that came in via an FBI tipline.

Now we are not detailing these allegations. They are not verified. But what is noteworthy is that these FBI officials go to some lengths to even color code and categorize these claims, saying that yellow is going to be for the more salacious ones.

We don't know exactly what happened with all of these tips, because there's not a lot of information in this document. We can tell that some of them the FBI followed up on; others they didn't. Some tips they actually deemed at the time as not credible.

But what is important here, politically speaking, and giving us an inside look at the process and the internal conversations, is the fact that these internal discussions about Donald Trump did happen as recently as last year.

Now one more quick thing that I want to mention, something that we saw for the first time related to Donald Trump in these documents is an FBI complaint form, where one woman says that she was raped by Donald Trump when she was 13.

As you noted, though, and importantly, these are allegations that are mirrored in this Jane Doe's allegations in previous lawsuits from 2016. And those lawsuits, we should note, were dropped. And Trump, of course, has vehemently denied these allegations.

Previous statements, repeated statements from the president, calling all of this a hoax, basically trying to say there's nothing to see here about me.

Well, there are certainly a lot of references about Donald Trump and you can certainly get a better picture of why he and those around him wouldn't have necessarily wanted these kinds of details to come out into the public light.

(END VIDEOTAPE)

BRUNHUBER: But some Epstein survivors are calling the DOJ's actions and redaction process outrageous. Multiple survivors told CNN the botched redactions exposed names or identifying information for many victims while hiding descriptions of crimes and identities of perpetrators. Listen to this.

(BEGIN VIDEO CLIP)

JESS MICHAELS, EPSTEIN SURVIVOR: This is what, the only 302 that could be found so far in the files by someone that was combing the files for hours. It was seven pages and four of them looked like this.

So we know that the victim's name is here, right?

And that's appropriately redacted.

So what is all of this?

[04:05:00]

So there's no way for me to say to you that there's closure here. This is the exact opposite of transparency. We've seen pages where they're blacked out and the only thing not blacked out was a survivor's name. It's -- it is such incompetence.

It is -- it is sloppy. I mean, if any one of us did our jobs the way the DOJ did this job, we wouldn't be working humans. We would -- we would lose our job. We would lose our place in a company because this particular job has been so egregiously done, horrifically done.

What is this?

What is missing here?

This is not a survivor's name. There's no survivor's name that is this long.

So what I'd like to ask any of them in the Department of Justice is, what is this?

This is a victim statement. The only thing that was supposed to be redacted was her name. So this is clearly, clearly protecting someone, something, many things.

And so to say, to stand on that podium and say, well, you know, there's no names here. And to hear for months now, there's nothing in this, there's no reason. But then there should be no reason to have a blank page.

If there's nothing there, then what are you redacting?

That's what I would have said to him.

(END VIDEO CLIP)

BRUNHUBER: The U.S. government is now partially shut down after Congress failed to reach a funding deal before Friday's deadline. Now the disruption isn't expected to last long. The Senate approved a spending package on Friday to fund three-quarters of government agencies.

The House is expected to vote on it on Monday, which should restore all government operations. Meanwhile, the shutdown shouldn't have too much of an impact over the weekend, depending on how long it lasts. Travelers could face delays at airports but national parks will remain open.

CNN's Annie Grayer has more on what led to this latest funding fight in Congress.

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ANNIE GRAYER, CNN CAPITOL HILL CORRESPONDENT: How did we get here?

Going into the week, the Senate had to pass the six remaining appropriations bills but one of those bills was for the Department of Homeland Security. And after escalating tensions in Minnesota, Democrats said they would not support any more funding for DHS without further restrictions.

So all week, the White House, Senate Democrats and Senate Republicans were working on a solution. And what they came up with was a deal to fund the five remaining agencies in full and only pass a two-week short-term extension while all the sides worked on a longer term solution.

So that has now passed the Senate. It is headed to the House. And House Speaker Mike Johnson held a call with House Republicans on Friday to discuss the next steps. He's going to have to rely on a lot of House Democrats to get this deal done.

But it is unclear how many House Democrats are going to support this deal -- Annie Grayer, CNN, Washington.

(END VIDEOTAPE)

BRUNHUBER: And joining me now from Colchester, England, is Natasha Lindstaedt, a professor of government at the University of Essex. Good to see you again. Thanks so much for being here with us. So we're

in a partial government shutdown. The House isn't back until Monday. We've already seen one historically long shutdown.

Looks like this one should end much more quickly, right?

NATASHA LINDSTAEDT, UNIVERSITY OF ESSEX: No, definitely. I think this is because the Democrats got a little bit of a win here, at least the Democrats in the Senate, because they were able to get an extra two weeks to negotiate, putting some kind of guardrails on ICE.

Which from their view, has just become completely off the rails, totally out of control. And there are some Democrats in the Senate that say they wouldn't be able to support funding ICE in the way it stands now.

And they have some really important stipulations that they want ICE to have, to wear some kind of body cameras. They don't want them wearing masks anymore. They want them to have to have a warrant.

They want them to have the same laws in terms of the use of force, the same policies in terms of the use of force as other law enforcement officials. And they want to be able to have independent investigations when something goes wrong.

So they don't feel like they could move forward with this, especially because there's been a lot of public support for some kind of restrictions on ICE. We see that in "The New York Times" poll, fairly recently revealed that 61 percent of Americans think that ICE is going too far.

So the Democrats know that they have some momentum here on this. And I think the Republicans know it, too. Trump is well aware that the optics of what has been happening in Minnesota is absolutely terrible for his party.

And even Republican senator John Kennedy from Louisiana stated basically that he's never seen a party take a winning issue and turn it into a losing issue in a matter of weeks. So all of these things are coming together for the Democrats, at least in the Senate, to be able to push to get some kind of compromise.

BRUNHUBER: All right.

[04:10:00]

I want to get to the politics of the issue in a second, referring to some of the poll numbers that you mentioned.

But just on the process right now, I mean, you talked about the guardrails that many Democrats want. Many Republicans are against the idea of any restrictions.

So given how far apart these sides are, I mean, even if they pass a short-term extension, do you think we'll just be back here in two weeks again? LINDSTAEDT: Well, we definitely could be. I mean, we're seeing signs that some Republicans just think that these stipulations, these restrictions are going too far.

You had Lindsey Graham in the Senate, for example, saying that this was just way too much, that ICE isn't going to be able to do its job. And you're going to see more divisions, of course, in the House, where people have to represent their constituencies. And this creates a lot of havoc in terms of coming to an agreement.

You also have a lot less party discipline from the Democrats in the House at times. So I mean, this fight isn't over. But at least gives the Democrats a few more weeks to try to negotiate.

I do want to underscore that there have been some Democrats that don't want to make the issue of ICE a hill to die on and have another shutdown, because shutdowns are really unpopular politically.

You have some Democratic senators, for example, that were saying, we need to focus on the midterms. We can't keep trying to use shutdowns as leverage. So we'll see what ends up happening.

But I think that there has been a little bit of movement from the Republican side, understanding that all of this that's happening doesn't look good.

You know, you recently had Tom Homan sent to Minnesota with Greg Bovino out. So some of these things are signs that the -- at least the Trump administration knows they need to compromise a little bit more.

BRUNHUBER: Yes. You touched on some of the political costs of this. But in terms of the polling, you mentioned that 61 percent of voters think that ICE has gone too far.

But I mean, if we learned something from the last shutdown, it showed that, even when the polls are on your side, as it was with health care and Democrats, you can still come away empty-handed.

So do you think anything is different now in terms of just the atmosphere around this issue that might lead to a to a win for Democrats?

LINDSTAEDT: Right. I mean, I think a lot of it has to do with the recent killings of American citizens. And we have even video footage of this. And this really changes things.

And there's just been a lot of attention on it and rightfully so as Americans are worried about what has happened to ICE here and what is going on.

I mean, that same poll that I mentioned, "The New York Times" poll, showed that 71 percent of independents think that ICE has gone too far. And this really would have been a winning issue for Trump. I mean, he had strong numbers on immigration.

And if he would have just kept doing what he was doing, he would have been fine. But instead ICE just went with these overly aggressive tactics that are really in breach of the law, which has really frightened a lot of Americans.

I mean, I don't know if the Democrats are going to decide this is going to be their hill to die on because, as I mentioned, these shutdowns are really unpopular because they are very, very disruptive, particularly if it starts to affect things like air travel.

But it's definitely become a much bigger issue for Republicans. It's a negative issue for them and they need to turn things around.

BRUNHUBER: All right. We'll have to leave it there. Always appreciate getting your insights, Natasha Lindstaedt. Thank you so much.

LINDSTAEDT: Thanks for having me.

BRUNHUBER: Well, the next round of trilateral talks on Ukraine may be postponed or relocated but Ukraine's president says the reason has nothing to do with Moscow or its military campaign. We'll explain next. Stay with us.

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BRUNHUBER: Authorities in the Democratic Republic of Congo say more than 200 people are dead after several mines collapsed earlier this week. Officials say heavy rain caused a landslide, which collapsed a major mining site in the eastern part of the country on Wednesday.

The site is controlled by the M23 rebel forces. Many of the victims' bodies have not yet been recovered. Authorities have halted mining at the site and ordered residents to relocate. Now the story is developing and we'll bring you more as soon as we get it.

In the coming hours, Russia's envoy is set to meet with U.S. negotiators in Miami. That's from a source who spoke with CNN. But the subject of those talks is still unclear.

Ukrainian president Volodymyr Zelenskyy says the separate trilateral talks, set for Sunday in Abu Dhabi, could be delayed or moved to a different location. He blamed the U.S. tensions with Iran for that.

Meanwhile, Ukraine's capital didn't take any fire overnight into Friday after Russia agreed to pause strikes on Kyiv until Sunday, following a request from U.S. president Donald Trump.

But Ukraine is making it clear that strikes didn't stop elsewhere and that Russia is focusing on a new kind of target. Salma Abdelaziz staying on top of all of those developments. And she joins us from London.

So let's start on the ceasefire talks.

What's the latest?

SALMA ABDELAZIZ, CNN ANCHOR AND CORRESPONDENT: Yes, just beginning with that, Kim, I do have to note just kind of the strange and curious nature of this specific truce. It was behind closed doors, if you will, in the sense that it was president Trump that announced this.

And it was only a day later that we got a confirmation from the Kremlin, which described it as a personal request from president Trump but refused to provide any details on what the truce actually entails.

We understand from president Trump that it's supposed to be about a week but we don't know when that starts or when that necessarily ends. And it only includes energy infrastructure, as you mentioned, Kim.

So other parts of the country were still getting hit by drone strikes, by missile strikes; residential areas were being struck as well, according to president Zelenskyy. I want you to take a listen to how he put it.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): The American side spoke about refraining from strikes on energy infrastructure for one week and the countdown began last night.

How this proceeds depends, of course, on our partners, primarily the United States. Ukraine is ready to mirror this restraint. And today we did not strike Russian energy facilities.

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[04:20:00]

ABDELAZIZ: You can hear, of course, the skepticism in his voice there, Kim. And previous attempts at implementing truces have failed and it is limited in scope. But it is, of course, a positive sign for president Trump's attempts at reaching a deal.

It shows that there is an attempt here at de-escalation between the two sides. Now the next talks were supposed to take place in Abu Dhabi tomorrow. That may be postponed. That's according to president Zelenskyy, who says the delay may be happening because of America's focus on Iran currently.

But we do know that, today in Miami, Russia's special envoy will be meeting with senior U.S. officials.

Now what is left in the negotiations?

What are the sticking points?

Well, the first one is, of course, over territory. Now secretary of state Marco Rubio says that it is only the issue of Donetsk that's left on the table. But Russia's poured cold water on that and says there are many more issues left on the negotiating table to sort out.

So a tiny step, if you will, in the direction of negotiations, in the direction of talks with this temporary pause, in striking energy infrastructure. But again, a very limited scope. And it's all about maintaining that pause and trying to turn that momentum into further negotiations and mediation efforts, Kim.

BRUNHUBER: Yes, appreciate that. Salma Abdelaziz, thanks so much.

President Trump is weighing his next step in Iran after threatening military strikes if Tehran doesn't agree to a new nuclear deal. He now says he's communicated directly with Iran about deadlines but it's not clear if he's set any. CNN's Fred Pleitgen has more from Tehran, where he's reporting with permission from the government.

But first, Kevin Liptak looks into Trump's options and a possible end game.

(BEGIN VIDEOTAPE)

KEVIN LIPTAK, CNN WHITE HOUSE CORRESPONDENT: President Trump continues to weigh his options for a military strike in Iran, even as he keeps the window open for some diplomatic solution.

He said on Friday that he believes the Iranians still want to make a deal. He said this week that he had been in touch with officials from the regime but still not ruling out the possibility that he could utilize what he's called a massive armada in the region to launch new military action.

Now as the president works to revive some of these talks, we understand that the U.S. is laying out three demands. One is that Iran give up its nuclear ambitions and all domestic enrichment of uranium. You'll remember the president did strike nuclear sites in Iran back in June. The president said that they were completely obliterated.

But American officials believe that the Iranians have been working to revive those enrichment sites.

Two, the president has demanded that Iran give up its ballistic missile program.

And three, that it end all support for its proxies in the region, you know, Hamas, Hezbollah, groups that have been degraded over the past year. But certainly that the U.S. wants to see Tehran cut off all of its support for.

So a number of demands that many analysts say will be difficult for the regime in Iran to agree to. But certainly the president making clear that, at least for now, the door is open to some diplomatic solution but also that he's not taking options off the table to strike.

And those options have now been expanded that the now that the USS Abraham Lincoln, the Aircraft Carrier Group, is in the region, expanding the amount of options that the president could call upon if he decides to take military action.

You know, these options range in severity, anything from a targeted strike on the Iranian security services up toward something that could potentially topple the regime there.

And it is, I think, unclear at this point what exactly the president's objectives might be.

Is he looking for something symbolic to show that he's following through on his threat to target the regime?

If it goes after protesters, which it certainly did earlier this month.

Or is he looking for something more expansive that could potentially get rid of the ayatollah, for example?

Now we heard from the secretary of state, Marco Rubio, this week, who said it wasn't clear what might replace the regime should the U.S. take action to get rid of it and, I think, just underscoring some of the uncertainties that still exist, as the president continues his decision making -- Kevin Liptak, CNN, the White House.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Iran is ready for what it calls meaningful negotiations; however, not under duress and certainly not under the threat of military force. That's what Iran's foreign minister, Abbas Araghchi, said when he was on a visit to meet Turkiye's foreign minister, Hakan Fidan.

Now we know that the U.S. side has said that they want negotiations with Iran but not just about the nuclear issue. They also want to talk about Iran's ballistic missile program and proxies here in the greater Middle Eastern region. Iran's foreign minister saying they're willing to talk about their nuclear program.

[04:25:00]

But certainly not about those other matters.

(BEGIN VIDEO CLIP)

ABBAS ARAGHCHI, IRANIAN FOREIGN MINISTER: I should also state unequivocally that Iran's defense and missile capabilities and Iran's missiles will never be the subject of any negotiations. If one side wants to impose its demands in advance, this is no longer a negotiation.

(END VIDEO CLIP)

PLEITGEN: President Trump has threatened what he calls massive strikes against Iran. While the Iranians have said that would have catastrophic consequences for the entire region, several Iranian officials have told me that, after their recent 12-day war with Israel, Iran actually changed its military doctrine.

And would now consider a large-scale attack against Iran to be existential for the Islamic Republic, meaning they wouldn't just retaliate against those attacking them. But it could also mean massive chaos for the greater Middle Eastern region.

President Trump continues to say that he's willing to use massive military force but at the same time also says he hopes the Iranians will make a deal -- Fred Pleitgen, CNN, Tehran.

(END VIDEOTAPE)

BRUNHUBER: Israel says the Rafah border crossing between Gaza and Egypt will reopen on Sunday. Satellite images are showing trucks already lining up on the border. But Israel's statement says the crossing can only be used for a limited movement of people and whoever wants to go through will have to get a security clearance from Israel.

The crossing is Gaza's gateway to the world but it's been closed since Israeli troops seized it in May of 2024. Israel resisted the reopening until the last hostage remains were returned from Gaza, which happened this week.

In another concession to Washington, since the capture of Nicolas Maduro, Venezuela's leaders are putting forward a bill that will grant amnesty to hundreds of political prisoners.

Acting president Delcy Rodriguez says she hopes the law will help heal the wounds left by political confrontation and violence. It will apply to cases from 1999 to the present day.

All right. We'll take a quick break. For our viewers in North America, I'll have more news in a moment. For our international viewers, "CNN CREATORS" is next.

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BRUNHUBER: Welcome back to all of you watching us here in the United States and Canada. I'm Kim Brunhuber. This is CNN NEWSROOM.

Protests swept across the U.S. on Friday from coast to coast. Massive crowds of people marched, chanted and carried signs. Students walked out of schools and businesses closed their doors.

The nationwide demonstrations are demanding an end to the Trump administration's immigration enforcement operations.

(BEGIN VIDEO CLIP)

BRUNHUBER (voice-over): Now look, this is what it looked like in Minneapolis, the epicenter of the federal actions in recent weeks. Thousands marching, spurred in part by the killings of two U.S. citizens by federal agents in the city earlier this month.

And this was the scene in Los Angeles on Friday. Police and federal officers clashed with protesters outside a federal building. At least two people were arrested. A protest outside L.A. city hall earlier on Friday remained peaceful. But as the day went on, tensions outside the federal building escalated. CNN's Veronica Miracle was there.

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VERONICA MIRACLE, CNN CORRESPONDENT: These protesters were able to get onto the property. There was a skirmish line of police officers of Department of Homeland Security officers.

They were in a bit of a line and the protesters overtook them and were able to basically push them further and further back all the way to the loading dock, where they essentially cornered all of them and pushed them back inside.

There was, you know, a bit of a skirmish. There were some pepper spray, people were throwing bottles but ultimately these protesters have overtaken this property, which I have never seen before.

(END VIDEO CLIP)

BRUNHUBER: And now the Trump administration is working to contain the backlash to its immigration operations and find a way forward. CNN's Kristen Holmes reports from the White House.

(BEGIN VIDEOTAPE)

KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: As protesters have continued to gather in Minneapolis and across the country, President Trump and his administration are sending mixed messages about what the future is of these immigration crackdown in that state, as well as what their view of the fatal shooting of 37-year-old Alex Pretti is.

Now president Trump had largely remained out of the conversation when it came to Pretti. At first, he had privately expressed support for the agent but quickly turned to demanding a full investigation.

However, late Thursday night, early Friday morning, president Trump took to Truth Social to lash out at Pretti over a recently emerged video.

He said this in a Truth Social post, "Agitator and perhaps insurrectionist, Alex Pretti's stock has gone way down with the just released video of him screaming and spitting in the face of a very calm and under control ICE officer and then crazily kicking in a new and very expensive government vehicle.

"So hard and violent, in fact, that the taillight broke off in pieces." This is, of course, in reference to that video we have seen that

surfaced this week of an earlier interaction that Pretti had with ICE agents, in which he did yell at these agents. We have not seen what happened before and after that video clip.

But when it comes to bringing the temperature down, obviously president Trump wading there into Pretti but also kind of seeming to go against what his own border czar, Tom Homan, had said on the ground in Minneapolis, when he said that they were going to draw down on federal law enforcement in that state.

Here's what president Trump said when he was asked about it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Will you be pulling back immigration enforcement agents out in Minnesota?

DONALD TRUMP, U.S. PRESIDENT: We will keep our country safe. We'll do whatever we can to keep our country safe.

(END VIDEO CLIP)

HOLMES: Now just a reminder here, Homan was brought in again to turn that temperature down and to try and figure out a path forward in Minnesota. Right now, of course, it is unclear what any of this means when it comes to the way the administration plans to move ahead -- Kristen Holmes, CNN, the White House.

(END VIDEOTAPE)

BRUNHUBER: The Justice Department has launched a civil rights investigation into the killing of Alex Pretti. Pretti, an intensive care nurse, was fatally shot by federal immigration agents in Minneapolis last weekend.

U.S. deputy attorney general Todd Blanche said the probe is standard and will focus on whether the Department of Homeland Security officers violated the law in shooting Pretti.

Customs and Border Protection are also conducting an internal review on the officers involved. Protesters have gathered daily across parts of the Twin Cities following the shooting.

Former CNN anchor turned independent journalist Don Lemon is vowing to fight federal charges brought against him related to a protest at a Minnesota church. Don Lemon was released from custody after appearing in federal court in Los Angeles on Friday.

[04:35:04]

Lemon, who often shares his opinions on stories with his followers, says he won't be silenced. Here he is.

(BEGIN VIDEO CLIP) DON LEMON, JOURNALIST: The First Amendment of the Constitution protects that work for me and for countless other journalists who do what I do. I stand with all of them and I will not be silenced. I look forward to my day in court.

(END VIDEO CLIP)

BRUNHUBER: Lemon and independent journalist, Georgia Fort, were live streaming as dozens of anti-ICE protesters interrupted a church service in St. Paul, Minnesota, earlier this month.

Federal prosecutors allege the journalists participated in a, quote, "takeover style attack" of the church and intimidated people there. Journalism groups say the Trump administration is trying to chill press freedom with the charges. Los Angeles Mayor Karen Bass was inside the courtroom on Friday, here she is.

(BEGIN VIDEO CLIP)

MAYOR KAREN BASS (D-CA), LOS ANGELES: Now all of you are at risk. And this is just unacceptable. This assault on our democracy has got to end. And you all journalists play such a critical role.

And I just want you to know -- and I think I could speak on behalf of this crowd, we are all going to fight every day for your ability to tell the truth, for your ability to cover this story and any other story.

(END VIDEO CLIP)

BRUNHUBER: The man accused of killing United Health Care CEO Brian Thompson won't face the death penalty. In a recent court ruling, a judge dismissed the federal murder charge that would have qualified Luigi Mangione for the death penalty.

He still faces federal charges of stalking Thompson and the State of New York has charged Mangione with second degree murder. He could face up to a life sentence if convicted on that charge but the death penalty is unconstitutional in New York.

(BEGIN VIDEO CLIP)

BRUNHUBER (voice-over): It was a tumultuous day on Wall Street, with silver having its worst day on record since 1980. But good news for the U.S. dollar, which rebounded to gain nearly 1 percent. All of the major stock indices slid, with Dow Jones and S&P 500 falling almost half a point, while the Nasdaq lost almost an entire percentage point.

(END VIDEO CLIP)

BRUNHUBER: The market uncertainty came after president Trump announced his new pick to run the Federal Reserve, Kevin Warsh. A 55- year old economist, Warsh is a longtime Trump ally, who was appointed to the Fed by president George W. Bush at 35, the youngest person ever to serve on its board of governors. Now he would need to be confirmed by the Senate. Current chair Jerome

Powell's term ends on May 15th. Powell has been consistently lambasted by Donald Trump for keeping interest rates higher than the president wanted.

According to his statements, Warsh now favors lower rates after being considered an inflation hawk.

Joining me now live from Los Angeles is Ryan Patel. He's a senior fellow at the Drucker School of Management at Claremont Graduate University.

Great to see you again. Thanks for coming on with us about this. So listen, Warsh a familiar name on Wall Street. He was there during the 2008 crisis.

What do you make of the fact that president Trump picked someone with that kind of institutional history, rather than a than a complete outsider?

RYAN PATEL, GLOBAL BUSINESS EXECUTIVE: Yes, I think it was the safer pick, I would say, because he does have that experience. The bankers -- he was a central banker. People know him in the market. And he was here during the time from 2006 to get the economy back.

And you mentioned it, which is going to be interesting is he's more hawkish. So coming into this situation will be very interesting to see what he chooses to do and to get the economy back to where, you know, he believes it's supposed to be.

BRUNHUBER: Yes. Now there's an interesting tension here. Warsh was known, as you say, as a -- as an inflation hawk during his time at the Fed.

But more recently, he's been supportive of rate cuts. So some analysts are kind of saying that Trump, there's a risk that he might get duped, I guess, if Warsh kind of goes back to his old instincts once he's in the chair.

How do you see that playing out?

PATEL: Yes. You know, I think, you know, even when president Trump and Powell in the beginning, I think for the new Fed chair coming in, you have to set to ensure that it's independent.

So I believe that it will go back to the fundamentals, at least initially, because you have to have independence. So I'd be shocked right away, again, pending how if he gets confirmed, you know what that really relates to the market and to the ability.

And you saw the market and the futures really adjusting to not the present conditions but the future policy expectations. So to me that was interesting.

BRUNHUBER: Yes. You said the magic word there, independent. And that is the big question, whether he'll be strong enough to set rates based on the economy and not politics.

I mean, do you get the sense that he will be doing that?

[04:40:00]

Explain to me how much that perception really matters to the markets.

PATEL: Kim, it matters. It matters today. Even today, even with his name coming out, the market reacted, right. The dollar -- the dollar went up because of that expectation. Even gold and silver went the opposite way, not because it was more about, you know, the hedging. That's what it occurred.

So the independence would be really clear here because you can't, you know, the last six months to eight months of what we saw, the back- and-forth between the Fed and president Trump, I think that's not healthy. That doesn't get us to where we need to get to. The numbers will push that.

And I think that's what he needs to do. So I think, for the current market situation, you know, the -- you mentioned uncertainty. But really the expectations, to take the clarity, is really important. What policy needs to be, at least identify that, explain it.

So then other banks around the world can place off of that. And I think that would be a roadmap to success.

BRUNHUBER: Yes. I mean, you advise companies on global strategy.

So if you're a CEO right now, trying to figure out what the -- what the back end of this year is going to be like, I mean, how much are these changes that we're seeing at the Fed weighing on your mind right now?

PATEL: It does. I mean, I think you have to think about it. The problem is you can't make a -- you can't make a move right now. You really can't. You know, for the second half of the year, it's still kind of guessing and where that looks like. There's so much to be had at that point.

So you're still sitting on the sidelines. I mean, you can get excited and start to move resources and capital but I don't -- you're still watching. You're still watching. You can feel great but that doesn't mean that you're making any moves yet.

So I think businesses on the side are seeing the direction but they're going to wait and see until it happens.

BRUNHUBER: Yes.

You know, I like to end our chats with sort of, you know, what does this mean for the viewers out there right now?

I mean, we're talking big picture. We're talking the economy, we're talking companies and CEOs. For the average person, when a new Fed chair is appointed like this

and, you know, we see some of the uncertainty perhaps but also the markets maybe stabilizing. I mean, what does this all mean for our viewers out there?

PATEL: To be very honest, indirectly, not very much directly. So I mean, let me -- let me take a step back.

So when these things happen, they're not going to face it right away or, in the long term, you'll see credit, you'll see interest rates. You'll see a little bit more exposure for the consumers to be a little bit more open.

But right now you won't see it for the consumers. And that's just the truth. It has to trickle down. But you know, I think when things hit where it needs to go, consumers will feel the benefit. But you know, not right now immediately.

BRUNHUBER: All right. We'll see whether he is indeed confirmed. And we'll chat again and see maybe some of those effects that you're talking about downstream are -- will have taken place. Ryan Patel, always great to talk to you. Thank you so much.

PATEL: Appreciate you. Kim.

BRUNHUBER: The life and legacy of the late, great actress Catherine O'Hara. Just ahead, the comedic mastermind has died. She left a trove of some of film and television's most unforgettable characters. Stay with us.

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[04:45:00]

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BRUNHUBER: Catherine O'Hara was a scene-stealing comedian behind some of film and television's most unforgettable characters. Considered a national treasure in her home country of Canada, she has died at 71 years old. She built her career on bold choices and masterful timing. CNN's Anderson Cooper has more.

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ANDERSON COOPER, CNN HOST (voice-over): She was, like so many greats, impossible to typecast. For millions of movie fans every Christmas, Catherine O'Hara was and always will be, the frazzled mom who left her son home alone --

CATHERINE O'HARA, ACTOR AND COMEDIAN: Kevin.

COOPER (voice-over): -- in what turned out to be the biggest holiday blockbuster of all time.

O'HARA: I've been from Chicago to Paris to Dallas to -- where the hell am I?

UNIDENTIFIED MALE: Scranton.

O'HARA: I am trying to get home to my 8-year-old son.

COOPER (voice-over): In "Beetlejuice," she was at her wits' end.

O'HARA: If you don't let me gut out this house and make it my own, I will go insane and I will take you with me.

COOPER (voice-over): Alongside frequent co-star Eugene Levy, she was a singing dog breeder in "Best in Show" ...

EUGENE LEVY, ACTOR AND COMEDIAN: God loves a terrier.

COOPER (voice-over): -- one half of a faded folk duo in "A Mighty Wind" ...

O'HARA: Mitch was so strong and so smart and knew what he wanted and I just focused on Mitch and, you know, I went along for the ride.

My dear --

COOPER (voice-over): -- and an eccentric, down-on-her-luck matriarch in the wildly popular "Schitt's Creek."

O'HARA: Do you remember Valentina?

Our chambermaid in Little Martinique. We all thought she had just a cold until it was too late. I'll never shake the mental image of her frothing and flailing in that water taxi.

I will forever be grateful to Eugene and Daniel Levy for the opportunity -- for restoring upon me the opportunity to play a woman of a certain age, my age, who gets to be -- who gets to fully be her ridiculous self.

COOPER (voice-over): In her more than 50-year career, the Emmy- winning Toronto native did it all: sketch comedy, big-budget features, indie cult favorites and streaming TV. Most recently, O'Hara starred opposite Seth Rogen in Apple's "The Studio" as a Hollywood executive who saw the handwriting on the wall.

O'HARA: They're influencers. Most of them don't even go inside. They just make their red carpet TikToks and leave.

COOPER (voice-over): Rogen called O'Hara the funniest person I'd ever had the pleasure of watching onscreen.

Canada has lost a legend, said Prime Minister Mark Carney.

And Michael McKean, who, with his wife, Annette O'Toole, wrote the Oscar-nominated song "A Kiss at the End of the Rainbow" for O'Hara and Levy in "A Mighty Wind," said simply, "Only one Catherine O'Hara and now none."

Catherine O'Hara was 71 years old.

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BRUNHUBER: She will be missed.

Just one week before the Winter Olympics and what was supposed to be a comeback for fan favorite Lindsey Vonn is now up in the air. Still to come, what the newly injured American skiing star is now telling fans. Stay with us.

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BRUNHUBER: NASA's postponing a key test for the historic Artemis II mission that will soon carry astronauts on a trip around the moon. A test was supposed to begin hours from now. Instead, it's been delayed until at least Monday because of weather conditions. The earliest possible launch day is now February 8th.

The Olympic torch relay continues in its journey across Italy. The flame has traveled through the Italian Alps and arrived at the alpine resort set to host the freestyle skiing and snowboarding events. It's now in its final stretch toward Milan, with just about a week to go before this year's Winter Olympics begin on February 6th.

And top American skier Lindsey Vonn insists her Olympic dream isn't over after she crashed out of her final downhill race a week before the Winter Games in Italy. She was airlifted to a hospital on Friday with an injured left knee. But as CNN's Patrick Snell tells us, Vonn is no quitter and has come back before.

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PATRICK SNELL, CNN CORRESPONDENT: Well, later in the day on Friday came some encouraging news concerning Lindsey Vonn, considering what the update from her via social media might have been.

The American is a remarkable athlete. Never doubt for one minute her extraordinary will to win. Her immense resilience and never quit attitude that served her so well over the years.

Just a reset for our viewers. Lindsey is making her return to the Winter Games for the first time since 2018. She's 41 years of age now and, on Friday in Switzerland, this was her last tuneup event in the downhill before the games officially start next week.

And here's why her fans all over the world can at least have some hope. Vonn posting on Instagram on Friday saying she injured her left knee, adding, "I am discussing the situation with my doctors and team and will continue to undergo further exams. "This is a very difficult outcome one week before the Olympics but if

there's one thing I know how to do, it's a comeback. My Olympic dream is not over. Thank you for all the love and support. I will give more information when I have it."

Well, this is how it all unfolded on Friday.

[04:55:00]

Vonn losing control when landing on a jump and then sliding into the safety net. She eventually got up after receiving medical attention, paying particular attention to her left knee. Vonn then skiing slowly to the finish line, stopping a couple of times on the way down and limping into a tent afterwards for medical attention.

She would then be airlifted off the mountain to go to hospital. The race was later canceled because three of the first six races crashed amid really poor visibility there in Crans-Montana.

Vonn retired from the sport in 2019 but returned just over a year ago to make one more run at the Olympics, where she's won one gold medal and two bronze over the years. The American recently spoke to CNN about how excited she was to make her Olympic return in Italy.

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LINDSEY VONN, OLYMPIC SKIIER: I feel actually younger and rejuvenated. You know, I think this crazy adventure has just given me more life and more excitement. And it's just a crazy opportunity when you're given, you know, a second chance at something.

It changes your mindset. So I don't feel older, I feel blessed. I know it's cheesy to say but I feel blessed that I have this opportunity. And that's given me a renewed sense of energy and excitement.

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SNELL: We're tracking the very latest on this story. But for now at least, these words again from Lindsey herself, "My Olympic dream is not over."

And with that, it's right back to you.

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BRUNHUBER: Pastry chefs in Argentina remixed the classic French croissant with a local twist for National Croissant Day on Friday. Have a look here.

Chefs served the pastry with classic Argentine favorites, from chimichurri to beef intestines. One chef says he hopes combining the croissant with his country's barbecue culture will help to popularize the Argentine croissant.

The history of the croissant in Argentina dates back to European immigrants, who popularized a smaller, sweeter pastry, called the medialuna.

I'm hungry now.

All right, that wraps this hour of CNN NEWSROOM. I'm Kim Brunhuber. I'll be back with more news in just a moment.