DC Wrap: Trump Nominates Fed Chair; Shutdown Looms; Epstein Files Released

Jan 31, 2026, 2:32 AM

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President Donald Trump announced on Friday that he will nominate former Federal Reserve official Kevin Warsh to be the next chair of the Federal Reserve, replacing Jerome Powell when his term expires in May. This nomination is expected to bring significant changes to the Fed, aligning it more closely with the White House's economic policies. Warsh previously served on the Fed's board from 2006 to 2011 and was the youngest governor in its history when appointed at age 35.

As Trump moves forward with this nomination, Senate leaders are scrambling to finalize a bipartisan spending deal to prevent a partial government shutdown set to occur this weekend. Some Republicans have expressed concerns about a recent agreement between Trump and Democrats regarding immigration funding, which they fear might weaken their negotiating position. The deal separates funding for the Department of Homeland Security from the broader spending bill and allows Congress two weeks to consider new immigration restrictions, following backlash from Democrats following recent protests.

The urgency of the funding negotiations is underscored by the political climate, with Representative Anna Paulina Luna (R-Fla.) pushing to tie a new voter ID bill, the "SAVE America Act," to the funding discussions. This legislation aims to ensure only US citizens can vote in federal elections and requires proof of citizenship when registering. Democratic leaders, however, have raised alarms about the potential disenfranchisement of eligible voters that such legislation could cause.

In a separate significant development, the Department of Justice released over three million pages of documents related to its investigation into Jeffrey Epstein and Ghislaine Maxwell, fulfilling requirements under the Epstein Files Transparency Act. This release includes more than 2,000 videos and 180,000 images. Deputy Attorney General Todd Blanche emphasized that this marks the end of a comprehensive review process aimed at ensuring transparency for the American public.

As these major stories unfold, they highlight the intersections of politics, economic policy, and civil liberties in the current administration. The implications of Warsh's nomination and the potential government shutdown could significantly affect both domestic policy and the public's perception of governance. Meanwhile, the release of Epstein-related files adds another layer to ongoing discussions about accountability and transparency in government actions.

With the deadline for government funding looming, both parties will need to navigate complex negotiations while addressing the larger issues surrounding immigration and democratic integrity. The coming weeks will be critical in determining the direction of both economic policy and legislative priorities as Trump seeks to solidify his influence ahead of the next election cycle.

As Washington grapples with these pressing issues, the focus will remain on how they will shape the political landscape moving forward, especially with the midterm elections approaching and the public increasingly concerned about the implications of these policy decisions on their lives.

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