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Early Start with Rahel Solomon

Sources: CIA Drone Strike Targeted A Port In Venezuela; Trump Threatens To Sue Fed Chief For "Gross Incompetence"; Zelenskyy: Some Peace Plan Documents Will Possibly Be Ready For Signing In January. Aired 5:30-6a ET

Aired December 31, 2025 - 05:30   ET

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

[05:30:00]

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ALAYNA TREENE, CNN WHITE HOUSE REPORTER: And what we do know now is that the operation took place inside Venezuelan territory and was very much a part of sovereign Venezuelan territory. And that, in and of itself, really marks a significant escalation because to date, the U.S. military -- not the CIA -- has been conducting strikes on these suspected drug boats in international waters, not really going near Venezuela and inside its own territory.

We also know that this strike did not kill anyone. According to CNN sources, it managed to destroy the boats, it managed to destroy the facility -- so successful in that respect -- but the facility was empty at the time and so there were no casualties.

But look, the CIA has been given kind of carte blanche by President Trump to carry out these kinds of covert activities inside Venezuela and around Latin America, and he expanded those authorities for the CIA earlier this year. And this was obviously meant to be a covert operation. And I'd argue if President Trump had not disclosed this then we may not even know about it because that is the very reason that the CIA carried this out and not the U.S. military, which has been the one leading all of those strikes on those alleged drug boats in the Caribbean and Eastern Pacific.

So as for the White House's part here they have been incredibly tightlipped about this whole thing. And, in fact, again, I really do think it's possible that if Trump hadn't let this slip in a radio interview last week, sort of offhandedly, we may not even know about this.

I should note as well that we haven't heard a comment from the Venezuelan government -- from the government of Nicolas Maduro -- of course, the man that the Trump administration has really been escalating this pressure campaign on. That, as well, is quite interesting and could be an indication of whether or not we may see more potential actions like this in the future.

Alayna Treene, CNN, Washington.

(END VIDEOTAPE) FREDRICKA WHITFIELD, CNN ANCHOR: All right. The Kennedy family is in mourning after the death of Tatiana Schlossberg. She is the middle child of Caroline Kennedy and granddaughter of John F. Kennedy. The 35-year-old environmental journalist revealed just last month that she was battling a rare form of leukemia. It was discovered after she gave birth in May of 2024.

Writing about her diagnosis in an essay for The New Yorker, Schlossberg said, and I'm quoting now, "I did not -- could not believe that they were talking about me. I was actually one of the healthiest people I knew."

She also acknowledged the tragedies that have marked her family, including the assassinations of her grandfather and great uncle Robert F. Kennedy, saying -- I'm quoting now -- "I have added a new tragedy to our family's life and there's nothing I can do to stop it."

Tatiana Schlossberg leaves behind her husband, George Moran, and two young children.

We'll be right back.

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[05:36:57]

WHITFIELD: All right, welcome back to EARLY START. This is your business breakout.

We're keeping an eye on U.S. stock futures ahead of the opening bell on Wall Street, and here is where things stand -- not very good. What a way to end 2025. Well, hopefully, the day is young and things will pick up.

All right. Checking some of today's business headlines.

Today is Warren Buffett's last day as CEO of Berkshire Hathaway. The 95-year-old businessman and investing whiz is stepping down Wednesday as head of the conglomerate. His protege, Greg Abel, will take the reins on Thursday. Buffett co-created The Giving Pledge in 2010, which calls for the world's richest people to promise to give the majority of their wealth to charitable causes in their lifetime or wills.

All right. Most Federal Reserve officials say they don't want to lower interest rates, at least until inflation pressures subside. That's according to the minutes from this month's monetary meeting. In the last three meetings officials have cut rates, mostly to help support the teetering labor market. Going forward, most of them want to prioritize bringing down inflation by keeping interest rates at their current level between 3.5 and 3.75 percent.

And New York City will start phasing out subway Metro cards tomorrow. On January 1, the city will stop selling the iconic yellow and blue plastic swipe cards. They're being replaced with a contactless fare payment system. The Metropolitan Transportation Authority says existing Metro cards will continue to be accepted for now. And President Donald Trump has frequently said that he wants to fire Federal Reserve chairman Jerome Powell whose term expires in May. And now Trump is threatening legal action against Powell, accusing the central bank leader of "gross incompetence" -- his words.

CNN's Vanessa Yurkevich has more.

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VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yeah, and this is not the first time that President Trump has threatened a lawsuit against Jerome Powell or threatened to fire him.

Let's take the lawsuit first. President Trump says the administration is thinking about bringing a lawsuit as it relates to gross incompetence. And essentially, that is over what President Trump is calling the mismanagement of the renovations of the Federal Reserve in Washington, D.C. These renovations were expected to cost $1.9 billion but it's now looking, according to the Federal Reserve, like this is going to cost $2.5 billion. And President Trump has really latched onto this overrun -- this over expense of this budget.

But the Federal Reserve says listen, we're cleaning up asbestos, we're cleaning up lead. We're making the entire building handicapped- accessible. We're also replacing the HVAC system in these historic buildings. And they said because of that, construction has gotten a little more expensive.

This is something that President Trump has been homing in on for months now, so much so that he took a visit to the Federal Reserve in July to get a sense of the renovations himself, very much trying to line item exactly what was costing more than it should.

[05:40:05]

It was remarkable to see Jerome Powell in real time fact-checking the president and saying wait a minute, that number that you're saying -- that's actually for the cost of a renovation of three different buildings.

Now, in terms of the firing of Jerome Powell -- well, President Trump again has said this a lot -- but essentially, this is something that has never been done before. The head of the Federal Reserve has never been removed.

If President Trump were to do so this would completely rattle global markets. And the question is does he have the power to do so? Well, in order to fire the head of the Federal Reserve the president needs cause, and that's potentially why we see the president bringing up this lawsuit time and time again. Could that be actual cause for firing Jerome Powell?

Another thing to think about is a term that was coined on Wall Street called "TACO" -- Trump Always Chickens Out. That's a term that Wall Street came up with because they believe that the president does make a lot of threats but actually doesn't follow through with them. And that's probably why Wall Street really didn't react to both the threat of the lawsuit and the firing yesterday.

But listen, Jerome Powell's term is up in May, and the president has already signaled that he knows who he wants to nominate to replace him. That'll come in the next couple of weeks. So there's obviously a short time period to be filing a lawsuit and firing the head of the Federal Reserve, both which would be really detrimental to the economy -- something that the president is really getting a lot of pushback on in terms of the affordability of the economy for many Americans.

Back to you.

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WHITFIELD: Vanessa, thank you so much.

All right. Still to come, Ukraine's president says the new year will bring new opportunities for peace negotiations. Details straight ahead.

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[05:46:15]

WHITFIELD: All right -- welcome back. I'm Fredricka Whitfield. Here are some of the stories that we're watching today.

The U.S. Department of Health and Human Services says it has frozen all federal child care funding for Minnesota. That amounts to $185 million for 19,000 children. And this comes after a MAGA content creator posted a viral YouTube video accusing Somali-run daycare centers in that state a fraud. CNN has not independently verified the accusations.

And the Kennedy family is in mourning following the death of Tatiana Schlossberg, the daughter of Caroline Kennedy and granddaughter of JFK. The 35-year-old environmental journalist had revealed just last month that she was battling a rare form of leukemia. Schlossberg leaves behind a husband and two small children.

And a train derailment caused a chemical leak in a rural part of southern Kentucky. Thirty-one cars went off the tracks early Tuesday and molten sulfur began leaking from one of the cars, sparking a fire. No injuries were reported and authorities have lifted a shelter-in- place order for those living nearby, saying the air quality is now safe.

And Ukraine's president is looking to begin the new year on a hopeful note. Volodymyr Zelenskyy saying that some peace agreement documents will be "ready for signing in January," but he cautions it depends on the willingness of the parties to sign.

Meanwhile, Moscow says it will revise its negotiating position in peace talks as it doubles down on the accusations that Kyiv launched a massive drone strike on one of Vladimir Putin's residences. The Kremlin has offered no evidence that an attack has even happened and Ukraine denies it, saying that the allegations are completely false. CNN's Nada Bashir is joining us now from London. What's the latest,

Nada?

NADA BASHIR, CNN CORRESPONDENT: Well Fredricka, following that meeting between the Ukrainian President Volodymyr Zelenskyy and U.S. President Donald Trump, there appears to be -- have been some movement when it comes to the peace deal currently o the table -- that 20-point peace plan that has been hammered out between U.S. officials and Ukrainian and Russia delegations.

Separately, we've heard from the Ukrainian president saying that in January -- early January we can expect to see meetings between the coalition of the willing leaders. So this is Ukraine's key allies.

We're expecting to see, initially, meetings between national security advisers at that level to hammer out the final details of that peace plan before a following meeting just a few days later expected to be in France on January 6, according to the Ukrainian president, at a top leader level to discuss those finer details. And he's gone on to say that some documents, as you mentioned, of that peace agreement are now ready to be signed. It is all depending on whether these partners, as part of this agreement, are willing to do so. So that, of course, remains to be seen.

President Zelenskyy has said he also expressed to the U.S. president his readiness and willingness to meet with President Putin of Russia to discuss this peace agreement. He said that he is not afraid of any format meeting with the Russian president.

And, of course, we had previously heard from the Ukrainian president saying that some 90 percent of the deal had already been reviewed. Indications from Zelenskyy at this stage is that there has been progress on that front. We haven't heard any formal remarks from the Russian president just yet on those details of the peace plan.

[05:50:00]

But we do know that Ukraine has offered some key concessions, including on ceding territory in the Donetsk region. So certainly, a key point of progress there.

President Zelenskyy has previously said he would expect a reciprocal ceding of territory by the Russian Armed Forces in the Donbas region. Again, whether we see that actually taking action and whether we see Russian Armed Forces agreeing to withdraw from these parts of Ukraine also remains to be seen. That will be crucial.

But something that Ukraine has also pushed for is support and cooperation when it comes to its economic recovery and any sort of ceasefire situation. So that appears to be a key element that has been discussed between mediators and allied leaders.

WHITFIELD: Um-hum, all right.

Nada Bashir, thank you so much. All right, now to the Middle East where Israeli Prime Minister Benjamin Netanyahu says he could see a new future for Gaza in 2026 if Hamas disarms.

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BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: A new government as Gaza is possible if you disarm Hamas. Because no one is going to come in there if Hamas stays armed and they'll put a bullet right through the back of their head -- you know, anyone of any potential new government. So the answer to your question is if we disarm Hamas, whether with international force or by any other means -- yes, I see a different future for Gaza.

(END VIDEO CLIP)

WHITFIELD: The Israeli leader says he and President Trump see "eye to eye" on Gaza.

Meanwhile, Israel says it will suspend the operations of several international aid groups who do not comply with new restrictions. That includes providing personal details of staff members, a move which aid agencies say could endanger their employees.

This comes as 10 countries warn that Gaza is facing renewed deterioration and the humanitarian situation remains catastrophic. They say at least 1.3 million people still require urgent shelter and more than half of Gaza's health facilities are only partially functioning because of shortages of medical supplies.

Meantime, Palestinians are enduring a harsh winter with heavy rain and plunging temperatures worsening already dire living conditions.

CNN's Matthew Chance has the story from Jerusalem.

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MATTHEW CHANCE, CNN CHIEF GLOBAL AFFAIRS CORRESPONDENT (voiceover): The war in Gaza has eased and it's the elements now pounding its displaced from the skies. Severe weather has left tens of thousands of people exposed to the high winds, cold, and rain. Appalling conditions that have left at least 25 people dead this month alone, including six children, according to Gaza's Ministry of Health.

UNIDENTIFIED FEMALE: (Speaking foreign language).

CHANCE (voiceover): "We woke up to find ourselves floating in the water," says this woman. "We've got no food, no drink, no begging. Everything we had has been (audio gap)."

Inside the waterlogged tent where he lives with his baby daughter inundated by the rains.

UNIDENTIFIED MALE: (Speaking foreign language).

CHANCE (voiceover): "Everything is soaked. The clothes, the mattress, everything just wet, as you can see," he says.

But for people in Gaza, their homes destroyed by war, there's still little sign of relief. Promises to rebuild the devastated territory have yet to materialize, held up until the second phase of President Trump's Gaza peace plan, also involving Hamas surrendering its weapons, gets underway.

REPORTER: Will the reconstruction of Gaza begin even before Hamas had disarmed?

DONALD TRUMP, (R) PRESIDENT OF THE UNITED STATES: I think it's going to begin pretty soon, yeah.

REPORTER: Before Hamas disarms?

TRUMP: He is looking forward to it and so am I. What a mess. What a mess it is.

UNIDENTIFIED MALE: (Speaking foreign language).

CHANCE (voiceover): The deadly (INAUDIBLE). With dozens of bomb- damaged buildings collapsing amid (audio gap) of people inside leaving Gazans with a life or death choice to risk shelter beneath crumbling ruins or endure the flimsy tents outside.

Matthew Chance, CNN, Jerusalem.

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WHITFIELD: And we'll be right back.

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[05:58:50]

WHITFIELD: All right -- welcome back.

New Zealand is just moments away now from welcoming in 2026. These are live pictures from Auckland. They're counting down for a fireworks display that will very soon light up the night sky. New Zealand will be one of the first countries to greet the new year. And CNN will bring you all of these celebrations around the world live as they happen.

Meantime, preparations are underway in London for a fireworks display on the River Thames. Some fireworks will even shoot out of the city's famous giant Ferris wheel, the London Eye.

And the man in charge of preparing the display explained just how big of a deal this will be.

(BEGIN VIDEO CLIP)

DARRYL FLEMING, DIRECTOR, TITANIUM FIREWORKS: Yes. So this is our 16th year delivering the mayor of London's fireworks show for the midnight moment on New Year's Eve. And we've got an awful lot of fireworks -- nearly 10,000 fireworks spread over the three barges that we're rigging here today. And then there's nearly 2,000 on the London Eye, which we can't rig until about 6:00 in the evening on the 31st itself.

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[06:00:00]

WHITFIELD: Ooh, that's going to be so exciting. And, of course, the folks bundling up there just as they are in New York as the countdown begins all around the globe for 2026.

Happy New Year, everyone. Thank you so much for joining us here on EARLY START. I'm Fredricka Whitfield in New York. "CNN THIS MORNING" starts right now.