Pete Hegseth, President-elect Trump’s controversial nominee for Secretary of Defense, faced intense scrutiny during his Senate confirmation hearing on Tuesday.

The former Fox News host and Army National Guard veteran encountered a barrage of questions from Democrats and some Republicans regarding his qualifications, past conduct and controversial statements.

During the hearing, Hegseth acknowledged he is “not a perfect person” but remained defiant in the face of multiple allegations surrounding his past conduct.

Senators pressed Hegseth on some of the most contentious issues surrounding his nomination, including…

1. Sexual assault allegations: Hegseth vehemently denied a 2017 sexual assault accusation, calling it a “false claim” and part of a “coordinated smear campaign.” When pressed about the incident in Monterey, California, he insisted he was “falsely accused, fully investigated and completely cleared.”

2. Women in combat roles: Hegseth faced criticism for his past statements suggesting women should not serve in combat positions. When confronted with quotes from his own book, he claimed his remarks were related to military standards and preparedness rather than outright opposition to women in combat.

3. “Warrior culture”: Hegseth defended his plan to bring focus on “warfighting, lethality, meritocracy, standards and readiness” back to the Department of Defense, emphasizing a shift away from diversity initiatives, towards combat readiness.

All told, the likelihood of Hegseth’s confirmation is still up in the air…

Your Rundown for Friday, January 17, 2025...

A Key Hegseth Holdout Flips

But with Republicans holding a 53-47 majority in the Senate, Hegseth could potentially secure confirmation without Democratic support – provided he doesn’t lose more than three Republican votes.

In December, we spotlighted three Republican senators who were Hegseth holdouts: Senators Shelley Moore Capito (WV), Susan Collins (ME) and Joni Ernst (IA).

Where do these Senators stand after Tuesday’s hearing?

Prior to the hearing, Capito was leaning towards supporting Hegseth but wanted to wait for the process to move forward. No word that anything has changed.

Collins’ position remains uncertain. She says she’ll wait to decide on his nomination until after he’s completed an FBI background check and the confirmation hearings.

Senator Joni Ernst, however, changed her position on Pete Hegseth’s nomination. On Wednesday, she officially announced her support for Hegseth during an interview with Iowa radio station WHO.

“Yes, I will be supporting President Trump’s choice for secretary of defense, Pete Hegseth,” she said. “He was able to satisfactorily address all of my concerns.”

Ernst’s decision to support Hegseth significantly increases the likelihood of his confirmation, as her vote was seen as crucial.

It’s also worth noting that other Republican Senators have expressed support for Hegseth since the hearing.

For instance, Senator John Barrasso (WY) said Wednesday that Pete Hegseth is “a bold choice for the future of our military” who deserves “swift confirmation.”

The path to confirmation seems likely, but the process is ongoing. (So far, no specific dates for additional hearings have been mentioned.)

Either way, the outcome of this nomination will have significant implications for the direction of the Department of Defense and U.S. military policy under Trump’s second administration.

Market Rundown for Friday, Jan. 17, 2025

S&P 500 futures are up 0.60% to 6,010.

Oil is down 0.40% to $78.34 for a barrel of WTI.

Gold is down 0.35% to $2,740.20 per ounce.

But Bitcoin’s soaring: up 2% to $102,500.