The next person who’ll be able to move markets by raising an eyebrow during a press conference has been named. Yesterday, President Trump nominated former Fed Governor Kevin Warsh to lead the central bank, ending months of intrigue about his choice to replace Jerome Powell, whose term ends in May.

Markets appeared cautiously optimistic…about the prospect of the Wall Street veteran helming the Fed. Despite being the son-in-law of a major Trump donor, Warsh is perceived as less closely aligned with the White House than other contenders for the role, and more likely to preserve apolitical decisionmaking at the world’s most influential central bank.

• The price of gold and silver (investor panic favorites) dropped as much as 12% and 36%, respectively, while the dollar soared.
• But the yield on long-term government bonds rose slightly, indicating that investors might view Warsh as inclined to cut interest rates more aggressively than Powell.

The successor-naming comes after Trump repeatedly accused the Fed chair of being too slow to slash interest rates, and amid a Justice Department criminal probe that Powell and critics from across the political spectrum have called a political attack.

What’s up with Warsh?

Many analysts and economists see him as an experienced wonk due to his tenure as a Fed governor in the late 2000s. He won plaudits for coordinating a response to the 2008 financial crisis with Wall Street and gained a reputation as an inflation hawk and advocate for higher interest rates.

But in the past year, he’s vocally aligned himself with Trump’s calls to cut interest rates faster, with some prominent economists accusing him of trying to curry political favor. Warsh has criticized the Fed for straying beyond its core mission of taming inflation and promoting employment, saying it should hold fewer bonds (which could increase borrowing costs), ease off on regulating banks, and not focus on goals like managing climate risk.

A nomination doesn’t mean confirmation…Republican Senator Thom Tillis vowed to block Warsh’s confirmation yesterday until the criminal probe into Powell—which Trump reiterated support for yesterday—is resolved.—SK

The DOJ released 3+ million pages of Epstein documents. The government released its final trove of documents under a law requiring it to make public its investigation into the late convicted sex offender Jeffrey Epstein. Deputy Attorney General Todd Blanche said the department was releasing more than 3 million pages, plus 2,000 videos and 180,000 images. The cache sheds further light on Epstein’s relationships with powerful people, including Elon Musk, who tried between 2012 and 2014 to schedule a visit to Epstein’s island (which does not appear to have happened), and former Obama counsel Kathryn Ruemmler, who accepted luxury gifts from Epstein after leaving the White House (Ruemmler is currently general counsel of Goldman Sachs). The documents include unverified tips the FBI received about President Trump, which the DOJ described as “unfounded and false.”—HVL

Don Lemon arrested, then released, for covering anti-ICE protest at Minnesota church. The former CNN journalist was taken into custody in Los Angeles late on Thursday in connection with a protest on Jan. 18 that disrupted a service at a St. Paul, MN, church where an ICE official is believed to serve as a pastor (another journalist and two protesters were arrested in Minnesota). Lemon, who now hosts his own show on YouTube and livestreamed during the protest, was charged with violating federal laws against interfering with the practice of religion. Yesterday, after appearing in court, Lemon was released on no money bond at the judge’s order. Outside the courthouse, Lemon said that the First Amendment protects his work and that of all journalists, and that “I stand with all of them and I will not be silenced. I look forward to my day in court.”—HVL

Luigi Mangione won’t face the death penalty. A federal judge ruled yesterday that prosecutors can’t seek a death sentence for the man accused of killing UnitedHealthcare CEO Brian Thompson, dismissing a federal murder charge in order to do so. The judge acknowledged that her legal analysis might seem “tortured and strange,” but said it was necessary under Supreme Court precedent. She also said prosecutors could appeal the decision. Mangione, who has pleaded not guilty, still faces two federal stalking charges, as well as state charges in New York, which does not permit the death penalty. The federal trial is scheduled to commence with jury selection on Sept. 8.—AR

What do space, autonomous cars, and social media have in common? While that sounds like a setup to a subpar Elon Musk joke, it’s what you’ll likely be wondering when you learn that the billionaire is reportedly considering merging SpaceX with one of his other companies.

Musk could combine SpaceX with xAI, Reuters reported, while Bloomberg reported that he may instead merge the aerospace company with Tesla. The news comes as SpaceX moves toward raising a record $50 billion in an IPO as early as June, which could beat AI rivals OpenAI and Anthropic to market.

Space + cars + tweets = ???

We’re not getting flying cars or astronauts asking Grok if something is true, so what are the actual benefits of these potential mergers?

• SpaceX + xAI: Musk believes future AI training will take place in space. He also envisions solar-powered AI satellites and launching data centers into orbit.
• SpaceX + Tesla: Musk wants to send Tesla’s Optimus robots to the moon or Mars, while Tesla’s energy storage systems could also help run the proposed orbital data centers. Tesla and SpaceX are also working separately to build "a hundred gigawatts a year" of solar power.

Thirty seconds to Mars: He’s further away from his goal of terraforming the red planet than that, but combining two or even all three of his companies could be another step toward colonizing Mars.—DL