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Shutdown Averted as Trump Names Fed Pick, Eyes Trade War

Senate Reaches Deal to Avert Government Shutdown as Trump Announces Fed Chair Nominee

Washington — The Senate reached an agreement Thursday to move forward with a government funding package, averting a potential shutdown set to begin at 12 a.m. Saturday. The deal came as President Trump announced he would reveal his nominee for Federal Reserve chair Friday morning.

According to a Senate Democratic source, the agreement allows for continued negotiations on immigration enforcement reforms following a recent fatal shooting in Minneapolis involving federal agents. However, the deal faced a potential hurdle as at least one Republican senator expressed reservations.

Under the agreement, lawmakers plan to separate a bill funding the Department of Homeland Security (DHS) from a larger package of six spending bills covering other government sectors, including the Pentagon and the State Department. Funding for DHS would be extended at current levels for two weeks, the source said.

Meanwhile, President Trump stated he had selected an "outstanding person" to lead the Federal Reserve, someone "very respected" and "known to everybody in the financial world," according to CBS News. While he did not disclose the nominee's identity, he previously indicated that White House National Economic Council Director Kevin Hassett and former Fed board member Kevin Warsh were leading candidates.

In Minneapolis, the White House border czar Tom Homan signaled a possible drawdown in Operation Metro Surge Thursday morning. However, Minneapolis Mayor Jacob Frey expressed skepticism, stating he would believe it when he sees it. "We need Operation Metro Surge to end," Frey told CBS News. "It is not about creating safety in Minneapolis...remove the federal agents." Homan replaced Greg Bovino as the on-the-ground face of operations in Minnesota earlier this week. As of Thursday, Homan had not clarified how many agents remained in Minnesota.

Elsewhere, in northern Mississippi, communities continued to grapple with the aftermath of a historic ice storm. The Gravestown Fire Chief Kenny Childs told CBS News that his community has been without power and running water for five days. Childs said he was informed by his local electric company that it will be another seven to 15 days before his community gets power restored.

In other news, President Trump threatened Canada with a 50% tariff on any aircraft sold in the U.S., escalating his trade war with America's northern neighbor. The president stated he was retaliating against Canada for refusing to certify jets from Savannah, Georgia-based Gulfstream Aerospace. "If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50 Tariff on any and all Aircraft sold into the United States of America," Mr. Trump said in a post.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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