Champions League draw: Real Madrid faces Benfica again, PSG vs. Monaco and Bodø/Glimt vs. Inter

MANCHESTER, England (AP) — Real Madrid faces an immediate rematch with Benfica after the teams were drawn together in the Champions League playoffs on Friday.

Benfica beat Madrid 4-2 on Wednesday to deny the 15-time European champion direct qualification to the round of 16 and force it into the uncertainty of the playoffs.

Defending champion Paris Saint-Germain must also take that route and faces an all-French showdown with Monaco. And this season's surprise package, tiny Norwegian team Bodø/Glimt, will play last year's beaten finalist Inter Milan.

The winners of the two-legged playoffs will advance to the round of 16, where Madrid may yet face another showdown with Manchester City.

The draw means former Madrid coach Jose Mourinho will return to the Bernabeu with Benfica after pulling off a stunning win in the final round of the league phase, which included a goal from goalkeeper Anatoliy Trubin in the eighth minute of added time.

Leading 3-2 after the 90-minute mark, Benfica needed another goal to climb into the playoffs on goal difference. It managed that in the most dramatic fashion when Ukranian keeper Trubin headed in the crucial goal.

Defeat saw Madrid — which had started the match in third place — drop out of the top eight, which directly advance to the round of 16.

Mourinho — a two-time Champions League winner — will have the chance to inflict more pain on his former club, which let go of coach Xabi Alonso last month and has turned to Alvaro Arbeloa to try to salvage the season.

PSG, which won the Champions League in such thrilling style last season, will have to take the long way round in its defense of the trophy. It plays a Monaco team that is nine places and 21 points below it in the French league.

PSG’s triumph last year also saw it advance via the playoffs.

Bodø/Glimt has been the story of this season’s competition so far after back-to-back upsets against Manchester City and Atletico Madrid to reach the playoffs on its debut in European club soccer's biggest competition. And it will present a major threat to Inter's hopes of progressing.

Benfica vs. Real Madrid

Bodø/Glimt vs. Inter Milan

Monaco vs. Paris Saint-Germain

Qarabag vs. Newcastle

Galatasaray vs. Juventus

Brugge vs. Atletico Madrid

Borussia Dortmund vs. Atalanta

Olympiakos vs. Bayer Leverkusen

The first legs will be played over Feb. 17-18.

The second legs over Feb. 24-25.

Arsenal, Bayern Munich, Liverpool, Tottenham, Barcelona, Chelsea, Sporting Lisbon, Manchester City.

The Europa League final this season is in Istanbul, but Nottingham Forest will take an early journey to the Turkish city after being drawn against Fenerbahce in the playoff round. Scottish champion Celtic plays Germany's Stuttgart, while Spanish club Celta Vigo faces Greek team PAOK, and Lille of France takes on Red Star Belgrade of Serbia.

James Robson is at https://x.com/jamesalanrobson

AP soccer: https://apnews.com/hub/soccer

The group formations are shown after the UEFA Champions League knockout phase play-off draw, at the UEFA headquarters in Nyon, Switzerland, Friday, Jan. 30, 2026. (Martial Trezzini/Keystone via AP)

PSG's head coach Luis Enrique reacts during the Champions League opening phase soccer match between Sporting CP and Paris Saint-Germain, in Lisbon, Tuesday, Jan. 20, 2026. (AP Photo/Armando Franca)

Real Madrid's head coach Alvaro Arbeloa gestures during a Champions League opening phase soccer match between Benfica and Real Madrid, in Lisbon, Wednesday, Jan. 28, 2026. (AP Photo/Armando Franca)

Benfica's head coach Jose Mourinho runs celebrating at the end of a Champions League opening phase soccer match between Benfica and Real Madrid, in Lisbon, Wednesday, Jan. 28, 2026. (AP Photo/Armando Franca)

WASHINGTON (AP) — President Donald Trump said Friday that he will nominate former Federal Reserve official Kevin Warsh to be the next chair of the Fed, a pick likely to result in sharp changes to the powerful agency that could bring it closer to the White House and reduce its longtime independence from day-to-day politics.

Warsh would replace current chair Jerome Powell when his term expires in May. Trump chose Powell to lead the Fed in 2017 but this year has relentlessly assailed him for not cutting interest rates quickly enough.

"I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump posted on his Truth Social site. “On top of everything else, he is ‘central casting,’ and he will never let you down.”

The appointment, which requires Senate confirmation, amounts to a return trip for Warsh, 55, who was a member of the Fed's board from 2006 to 2011. He was the youngest governor in history when he was appointed at age 35. He is currently a fellow at the right-leaning Hoover Institution and a lecturer at the Stanford Graduate School of Business.

In some ways, Warsh is an unlikely choice for the Republican president because he has long been a hawk in Fed parlance, or someone who typically supports higher interest rates to control inflation. Trump has said the Fed’s key rate should be as low as 1%, far below its current level of about 3.6%, a stance few economists endorse.

During his time as governor, Warsh objected to some of the low-interest rate policies that the Fed pursued during and after the 2008-09 Great Recession. He also often expressed concern at that time that inflation would soon accelerate, even though it remained at rock-bottom levels for many years after that recession ended.

But more recently, however, in speeches and opinion columns, Warsh has said he supports lower rates.

Warsh’s appointment would be a major step toward Trump asserting more control over the Fed, one of the few remaining independent federal agencies. While all presidents influence Fed policy through appointments, Trump’s rhetorical attacks on the central bank have raised concerns about its status as an independent institution.

The announcement comes after an extended and unusually public search that underscored the importance of the decision to Trump and the potential impact it could have on the economy. The chair of the Federal Reserve is one of the most powerful economic officials in the world, tasked with combating inflation in the United States while also supporting maximum employment. The Fed is also the nation’s top banking regulator.

The Fed’s rate decisions, over time, influence borrowing costs throughout the economy, including for mortgages, car loans and credit cards.

For now, Warsh would fill a seat on the Fed’s governing board that was temporarily occupied by Stephen Miran, a White House adviser who Trump appointed in September. Once on the board, Trump could then elevate Warsh to the chair position when Powell’s term ends in May.

Since Trump's reelection, Warsh has expressed support for the president's economic policies, despite a history as a more conventional, pro-free trade Republican.

In a January 2025 column in The Wall Street Journal, Warsh wrote that "the Trump administration’s strong deregulatory policies, if implemented, would be disinflationary. Cutbacks in government spending — inspired by the Department of Government Efficiency — would also materially reduce inflationary pressures.” Lower inflation would allow the Fed to deliver the rate cuts the president wants.

Since his first term, Trump has broken with several decades of precedent under which presidents have avoided publicly calling for rate cuts, out of respect for the Fed’s status as an independent agency.

Trump has also sought to exert more control over the Fed. In August he tried to fire Lisa Cook, one of seven governors on the Fed’s board, in an effort to secure a majority of the board. He has appointed three other members, including two in his first term.

Cook, however, sued to keep her job, and the Supreme Court, in a hearing last week, appeared inclined to let her keep her job while her suit is resolved.

Economic research has found that independent central banks have better track records of controlling inflation. Elected officials, like Trump, often demand lower interest rates to juice growth and hiring, which can fuel higher prices.

Trump had said he would appoint a Fed chair who will cut interest rates, which he says will reduce the borrowing costs of the federal government’s huge $38 trillion debt pile. Trump also wants lower rates to boost moribund home sales, which have been held back partly by higher mortgage costs. Yet the Fed doesn't directly set longer-term interest rates for things like home and car purchases.

If confirmed by the Senate, Warsh would face challenges in pushing interest rates much lower. The chair is just one member of the Fed’s 19-person rate-setting committee, with 12 of those officials voting on each rate decision. The committee is already split between those worried about persistent inflation, who’d like to keep rates unchanged, and those who think that recent upticks in unemployment point to a stumbling economy that needs lower interest rates to bolster hiring.

Financial markets could also push back. If the Fed cuts its short-term rate too aggressively and is seen as doing so for political reasons, then Wall Street investors could sell Treasury bonds out of fear that inflation would rise. Such sales would push up longer-term interest rates, including mortgage rates, and backfire on Warsh.

Trump considered appointing Warsh as Fed chair during his first term, though ultimately he went with Powell. Warsh’s father-in-law is Ronald Lauder, heir to the Estee Lauder cosmetics fortune and a longtime donor and confidant of Trump’s.

Prior to serving on the Fed's board in 2006, Warsh was an economic aide in George W. Bush's Republican administration and was an investment banker at Morgan Stanley.

Warsh worked closely with then-Chair Ben Bernanke in 2008-09 during the central bank’s efforts to combat the financial crisis and the Great Recession. Bernanke later wrote in his memoirs that Warsh was “one of my closest advisers and confidants” and added that his “political and markets savvy and many contacts on Wall Street would prove invaluable.”

Warsh, however, raised concerns in 2008, as the economy tumbled into a deep recession, that further interest rate cuts by the Fed could spur inflation. Yet even after the Fed cut its rate to nearly zero, inflation stayed low.

And he objected in meetings in 2011 to the Fed's decision to purchase $600 billion of Treasury bonds, an effort to lower long-term interest rates, though he ultimately voted in favor of the decision at Bernanke's behest.

In recent months, Warsh has become much more critical of the Fed, calling for “regime change" and assailing Powell for engaging on issues like climate change and diversity, equity and inclusion, which Warsh said are outside the Fed's mandate.

His more critical approach suggests that if he does ascend to the position of chair, it would amount to a sharp transition at the Fed.

In a July interview on CNBC, Warsh said Fed policy “has been broken for quite a long time.”

“The central bank that sits there today is radically different than the central bank I joined in 2006,” he added. By allowing inflation to surge in 2021-22, the Fed “brought about the greatest mistake in macroeconomic policy in 45 years, that divided the country.”

Follow the AP's coverage of the Federal Reserve System at https://apnews.com/hub/federal-reserve-system.

FILE - Kevin Warsh speaks to the media about his report on transparency at the Bank of England, in London, Dec., 11, 2014. (AP Photo/Alastair Grant, Pool, File)

President Donald Trump arrives for the premiere of first lady Melania Trump's movie "Melania" at The John F. Kennedy Memorial Center For The Performing Arts, Thursday, Jan. 29, 2026, in Washington. (AP Photo/Allison Robbert)