Trump Administration Sees Threat in Growing Foreign Spy Bases in Cuba

Alex Ossola (0:00)

Hey, this is Alex from What's News. Thanks so much for being a listener of the show. If you're looking for more insights and tools to understand the latest headlines, consider becoming a subscriber to The Wall Street Journal. Visit subscribe.wsj.com/what'snews to subscribe now.

Kevin Warsh is sworn in as the new chair of the Federal Reserve. Plus, US. Intel warns that Russia and China are using Cuba to increase their spying on the US.

Alex Ward (0:32)

There's no question that the cooperation between the Cubans, the Chinese and Russians would be part of the explanation to the American people for why they continue to be tough on Cuba.

Alex Ossola (0:42)

Tulsi Gabbard becomes the latest Trump administration official to leave her post. It's Friday, May 22nd. I'm Alex Ossola for The Wall Street Journal. This is the PM Edition of What's News, the top headlines and business stories that move the world today.

Kevin Warsh was sworn in today as the new chair of the Federal Reserve. The ceremony was at the White House, making Warsh the first fed chair to take the oath there in decades. The last one was Alan Greenspan in 1987

Supreme Court Justice Clarence Thomas administered the oath.

SPEAKER_2 (1:21)

And that I will well and faithfully discharge.

Alex Ward (1:25)

And that I will well and faithfully discharge.

SPEAKER_2 (1:28)

The duties of the office on which I'm about to enter.

Telus Demos (1:32)

The duties of the office on which I'm about to enter.

SPEAKER_2 (1:35)

So help me God.

Alex Ward (1:37)

So help me God.

Alex Ossola (1:40)

Warsh is taking the top spot at the Central Bank during a difficult economic moment. Inflation is rising. A growing number of investors say the Fed's next move could be a rate increase, not the cut that President Trump wanted and that Warsh was hired to deliver.

Trump today stressed that the Fed should operate free from political influence. I want Kevin to be totally independent.

Telus Demos (2:02)

I want him to be independent and just do a great job.

Miriam Gottfried (2:04)

Don't look at me, don't look at anybody.

SPEAKER_6 (2:06)

Just do your own thing and do a great job.

Alex Ossola (2:09)

But then, moments later, he laid out the view he wants Warsh to take, that a booming economy doesn't need to be reigned in and that strong growth doesn't cause inflation.

SPEAKER_7 (2:18)

We want to stop inflation, but we don't want to stop greatness.

Alex Ossola (2:21)

Separately, one of President Trump's cabinet members is leaving the administration, director of national intelligence Tulsi Gabbard. In a letter to Trump later posted on social media, Gabbard says she's resigning because her husband has bone cancer. Her last day is June 30th. Her departure caps a tumultuous tenure. She was largely sidelined from President Trump's national security operations, including those in Venezuela and Iran. She is the latest high-profile departure from the administration. The list includes Homeland Security Secretary Kristi Noem, Attorney General Pam Bondi, Labor Secretary Lori Chavez de Rimer, and the head of the FDA, Marty McCary. Gabbard's deputy Aaron Lucas will serve as the acting National Intelligence Director.

Turning to conflicts overseas, in the Middle East, mediators have been racing to make a deal that would bridge gaps between the US and Iran. Pakistan and other regional countries involved in talks are trying to head off US and Israeli strikes on Iran.

Middle East officials say that without a diplomatic breakthrough, strikes could happen within days. Strikes would aim at economic targets like energy infrastructure. They're intended to pressure Iran into a deal. Iran has warned it would retaliate after an attack. In an exclusive, the journal has learned that Russia and China have, in recent years, expanded their intelligence operations in Cuba. They've invested in electronic eavesdropping facilities used to spy on US military sites in Florida. The intelligence assessment comes at a time when the Trump administration has declared Cuba an unusual and extraordinary threat to US national security.

WSJ national security reporter Alex Ward joins me now from Washington. Alex, Chinese and Russian presence in Cuba isn't exactly new. The journal has reported on this before.

How significant is this increase that we just learned about?

Alex Ward (4:08)

It matters in large part because it shows that the Chinese and the Russians are investing more in that capability and that could give them a greater shot at collecting information, mostly unclassified communications from US. Southern Command and US. Central Command, which are based in Florida. We should also note that, of course, President Trump has some personal properties in Florida, although no indication necessarily that they're picking up stuff from there.

And while Washington is known for a while that the Chinese and Russians have set up these sites in Cuba, the fact that they're expanding them and improving them and setting more personnel just sort of fuels the Trump administration's public case for potentially dislodging the regime in Havana.