Transcript
Ben Shapiro (0:00)
The Trump DOJ seems to be targeting Fed Chair Jerome Powell. What's going on with that? Plus, we're joined by a vice admiral to talk about the latest in Iran and a spokesperson for the Department of Homeland Security to explain what ICE is doing in Minnesota. First, why do people just like you become Daily Wire plus members? Because when riots break out in Minneapolis, we send reporters into the chaos. For investigative journalism that goes where others will not. For premium entertainment that actually means something like Real History with Matt Walsh, premiering Monday, January 19th. And for the biggest swing we've ever taken, a full scale cinematic epic, the Pendragon cycle. Rise of The Merlin, premiering January 22. People join because this isn't just a subscription, it's a community. People watching together, reading together, laughing, debating, pushing back, refusing to shut up or sit down. Go to DailyWirePlus.com and join right now. Well, everyone in the world of economics and in the markets is talking about President Trump's DOJ going after Jerome Powell, the Federal Reserve chairman. Now, again, Jerome Powell is is leaving the Fed chairmanship next year anyway. And not only that, he is leaving the Federal Reserve entirely in January of 2028. So it's somewhat confusing as to why the DOJ is going after Jerome Powell if all they have on him is that there are cost overruns in the rebuilding and reconstruction of the Federal Reserve building. Nonetheless, the controversy is hot and heavy today. According to the Wall Street Journal, for years, Federal Reserve Chair Jerome Powell responded to President Trump's broad ties in ways that generally avoided escalation. That changed on Sunday night. In an extraordinary two minute video message, Powell accused the administration of using the threat of criminal prosecution to pressure the Fed into lowering rates. He framed the Justice Department investigation as nothing less than a head on challenge to the Fed's ability to operate free of political control. And of course, he is not the first Federal Reserve Board member to be targeted by the doj. Lisa Cook has also been targeted by the DOJ over supposedly misfiling her mortgage forms, falsifying that it was a second mortgage when it was actually a first mortgage or whatever the case is. The point that Powell is making is that it's kind of weird that the only people who seem to be cropping up in the DOJ list of people to investigate are people who are opposed to President Trump's agenda, which is lowering those interest rates. Now, as I've said before, artificially low interest rates are not a good thing. I understand that. We've lived with those for a very long time in the United States. It's why everybody has a three and a half percent mortgage. But the reality is that the interest rate, if it were allowed to free flow, if it were allowed to float where it should be, would actually ensure less uncredit worthiness in the market. It would prevent speculation. It would allow the market to naturally follow its ebbs and flows, rather than creating these gigantic bubbles which then pop. And a lower interest rate, said by the Federal Reserve right now, which effectively injects money into the supply, creates more speculative bubbles. Right now, we, we may already be in a speculative bubble with regard to AI, which we'll get to in a little while. And so lowering those interest rates as a matter of policy, I'm not sure it's so wise. But even if you were to think that the interest rates should be lowered, the reality is that political pressure on the Federal Reserve to lower the interest rates is going to create enormous schisms in the economy. It's going to make people feel as though the central bank of the United States is operating with political motives in mind, purely political motives in mind, and that the interest rates actually are artificially low, not because the Federal Reserve is getting it wrong, but because of political pressure. And once that happens, once monetary policy becomes a pure tool of whichever party is in power, you start to have a real problem because you can deflate your way out of problems, inflate your way into problems, and there are downstream effects to all of this for the American people. This, by the way, is why I am a devotee of Austrian school of economics, which suggests a modified gold standard, not the Federal Reserve sitting there and either printing dollars or buying bonds off the market or injecting liquidity into the system by offering lower interest rates in the overnight markets. Apparently, subpoenas arrived late on Friday. Powell, a lawyer by training, spent the weekend huddling with his advisors, weighing how to respond. A criminal investigation of a sitting chair is without precedent. Powell's message was too. According to the Wall Street Journal, by going public, Powell was making sure that pressure applied in private couldn't stay private. The decision to disclose the investigation appeared to reflect a belief that the public should know what was unfolding. The threat of prosecution of a sitting Fed chair would be material information for investors or anyone else trying to understand the forces shaping interest rate deliberations. Now President Trump is claiming he didn't know about the DOJ subpoenas and that any criminal investigation would not be related to disagreements that the White House actually had with Powell over the interest rates. And a lot of allies of the president are not particularly happy about all of this. They see this as needlessly chaotic. According to Politico, a growing number of Republicans on Capitol Hill are expressing unease with the DOJ's move to investigate Jerome Powell. According to House Financial Services Chair French Hill of Arkansas, he said that this creates an unnecessary distraction that could undermine this and future administration's ability to make sound monetary policy decisions, quote, unquote. I've known Chairman Powell since we worked together at treasury during the George H.W. bush administration. Then is now. I know Mr. Powell to be a man of integrity with a strong commitment to public service. While over the years we've had our policy disagreements, I found him to be forthright, candid and a person of the highest integrity. Senator Kevin Kramer, Republican of North Dakota, called Powell a bad Fed chair who has been elusive with Congress, especially regarding the overruns of the elaborate renovations of the building. I do not believe, however, he is a criminal. Again, Cramer is a strong ally of President Trump. He said, I hope this criminal investigation can be put to rest quickly along with the remainder of Jerome Powell's term. We need to restore confidence in the Fed. Senator Lisa Murkowski of Alaska, who again is a sort of purpley senator. She tends to vote more often with the Democrats. She wrote that the administration investigation is nothing more than an attempt at coercion and added, if the DOJ believes an investigation into Chair Powell is warranted based on project cost overruns, which aren't unusual, then Congress needs to investigate the doj. The stakes are too high to look the other way. If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer. And again, this sort of stuff is not salutary for Republican chances in the midterms. It isn't. What Americans are looking for right now is a feeling of solidity. They want to feel as though things are moving in the right direction, that they are not standing on shifting sands all the time. And what the polling shows right now is that people are increasingly not just moving away from Republicans, they're moving away from both parties. Actually. Brand new Gallup polling shows 45% of Americans, the highest in recorded history, now identify as political independence. Now, that doesn't mean they're not voting Republican or Democrat. It means they do not identify with either party. As sort of a point of pride. In most years since Gallup began recording These statistics, since 1988, independents have been the largest political group, but that percentage has been skyrocketing since about 2005. In 2005, the American public was split 3333 33. Essentially today almost half say they are political independence at this point. And again, if you look at how people are identifying by cohort, what you see is the Gen zers are identifying as independent overwhelmingly at 56% Democrat, 27 Republican 17 millennials are identifying as independent 54% 24% Democrat 21% Republican. Gen X identifies 31% Republican, 42% independent 25% Democrat. And it's really only as people get older that they stop identifying nearly as much as independent when it comes to how they are leaning Republican. Independent leaners about 15% of the population, but Democrat leaning independents represent 20%. So again, if you add up the Democratic identifiers with the Democratic leaning independents, they are currently at 47% of the electorate. For Republicans that statistic is 42%. So again, the the numbers are not looking amazing for Republicans here. With that said, when it comes to identifying ideologically, a plurality of Americans say they identify as conservative, followed by 33% of moderate. There is a rising percentage, 28% identify as liberal or very liberal. So if there is movement, that movement is actually in the direction of liberal to very liberal at this point. More on this in a moment. First, this episode is sponsored by our friends over at PureTalk. If your credit card balance is stressing you out after all the holiday spending, I've got something that can save you money right now. You can cut your cell phone bill in half by switching on over to Pure Talk's saver plan. Just 20 bucks a month for unlimited talk text and 3 gigs of high speed data on PureTalk's super fast nationwide 5G network. And as a veteran led company that actually cares about giving back to those who serve. If you're active or former military or a first responder, you you'll save an additional 20% every single month. The easiest way to free up cash flow is to reduce your monthly recurring bills. Start with cutting overpriced wireless and switching to my wireless company. 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Head on over to policygenius.com Shapiro to compare life insurance quotes from top companies. See how much you could say that's policygenius.com Shapiro so Republicans are running in choppy waters for sure. And the President injecting, I would say, needless chaos into the economic system is not a great idea, particularly because again, there are a lot of indicators that things are going pretty well. CNN reported, for example, that the mortgage rates have now dropped below 6%. Again, it's not three and a half, but it's certainly well below the 8 or 9% that seemed to be the rule of the day during the Biden administration.
