
Plus, DeepSeek’s shock to the top.
Loading summary
Charles Schwab
This podcast is supported by Charles Schwab. Decisions made in Washington can affect your portfolio every day. But what policy changes should investors be watching? Washington Wise is an original podcast from Charles Schwab that unpacks the stories making news in Washington right now and how they may affect your finances and portfolio. Listen@schwab.com WashingtonWise.
Tracy Mumford
From the New York Times, it's the headlines. I'm Tracy Mumford. Today's Tuesday, January 28th. Here's what we're covering.
Donald Trump
So we signed numerous executive orders today, as you know, and very successful. I think we'll give you a little rundown.
Tracy Mumford
President Trump continues to aggressively reshape the federal government. From the cabin of Air Force One. Yesterday, he added to the dozens of executive orders he's already signed. He directed the Pentagon to end diversity programs, moved to push openly transgender people out of the military, and ordered plans.
Unnamed White House Official
For a new missile defense system for.
Donald Trump
The U.S. pretty good recap, wouldn't you say?
Tracy Mumford
And in D.C. trump's acting attorney general made good on the president's vows for retribution. He fired more than a dozen prosecutors.
Unnamed White House Official
Who worked on the criminal investigations into Trump. The Justice Department said in a statement.
Tracy Mumford
That those who were fired could not be trusted to, quote, faithfully implement the president's agenda. And in another sweeping move, the White.
Unnamed White House Official
House budget office issued a memo pausing all grants, loans, and federal financial assistance.
Tracy Mumford
As of today, exactly what that includes is unclear. The Trump administration says it won't affect Medicare or Social Security benefits, but it.
Unnamed White House Official
Potentially freezes hundreds of billions of dollars intended for state and local governments, disaster.
Tracy Mumford
Relief aid, education funding, small business loans.
Unnamed White House Official
The budget office indicated the pause will last until at least mid February and.
Tracy Mumford
That it's necessary in order to ensure.
Unnamed White House Official
That federal programs are aligned with Trump's policy priorities.
Tracy Mumford
It's not clear whether Trump's administration has the authority to do this, to unilaterally halt funding that's already been allocated by Congress. Under the Constitution, Congress passes the spending bills. The president is supposed to execute them as written.
Unnamed White House Official
Meanwhile, the Trump administration has also targeted foreign aid, pausing nearly all aid payments to other countries. That includes support for a high profile.
Tracy Mumford
American Health Initiative, pepfar, the president's Emergency Plan for AIDS Relief. The program, which was started by George.
Unnamed White House Official
W. Bush, is estimated to have saved as many as 25 million lives in 54 countries.
Tracy Mumford
Last night, the Trump administration went beyond just pausing the program's funding.
Unnamed White House Official
It shut down access to all its.
Tracy Mumford
Data and reports and directed clinics to.
Unnamed White House Official
Stop distributing HIV medications that were paid.
Tracy Mumford
For with US Money, even if the medications were already sitting in the clinics.
Unnamed White House Official
Ready to be used.
Unnamed Financial Analyst
Stock markets opened just a few minutes ago, and it's not pretty.
Unnamed Tech Analyst
Artificial intelligence took a real hit today as American companies face the emergence of a new AI app from China.
Donald Trump
Let's talk about Deep Seat because it.
Unnamed White House Official
Is mind blowing and it is shaking this entire industry to its core. The emergence Last week, Deep Seq was.
Tracy Mumford
A relatively obscure Chinese startup working on AI, but on Monday it shook the global economy, wiping out hundreds of billions of dollars in tech stocks.
Unnamed White House Official
The company has investors reeling because it undercuts some of the major assumptions about what it takes to develop AI.
Tracy Mumford
US companies like OpenAI, Microsoft and Meta.
Unnamed White House Official
Have said the key to success is computer chips.
Tracy Mumford
The more chips you have, the more powerful your AI product. That's led to billion dollar investments in chip makers like Nvidia, which has become one of the most valuable companies on.
Unnamed White House Official
Earth in the last few years.
Tracy Mumford
But Deepseek says its new AI model, which rivals competitors like ChatGPT, was made.
Unnamed White House Official
With just a fraction of the chips.
Tracy Mumford
That US Makers rely on. That has Wall street rethinking whether the biggest players in the field were overhyped and overvalued.
Unnamed White House Official
It's also raised questions about America's dominance.
Tracy Mumford
In AI and whether China might now cut into that. Marc Andreessen, one of Silicon Valley's biggest tech investors, compared the emergence of Deep.
Unnamed White House Official
Seq to the space race of the.
Tracy Mumford
20Th century, calling its launch quote AI's Sputnik moment. For more on Deep Seek, listen to the newest episode of Hard Fork with Times tech columnist Kevin Roos.
Unnamed Financial Analyst
It is not unusual for people in the AI world to start freaking out about some new development or breakthrough or some new model that was released. But I believe that this is the real deal. I think this is a big moment in the history of AI development.
Tracy Mumford
In Los Angeles, scientists and city officials.
Unnamed White House Official
Are warning about the potential health impacts from this month's fires. Unlike wildfires in remote areas that mostly.
Tracy Mumford
Burn through brush and trees, these fires.
Unnamed White House Official
Tore through entire neighborhoods, melting plastics, chemicals and asbestos.
Tracy Mumford
They also released lead from paint and old pipes. The Times got detailed air quality measurements from the worst days of the fires.
Unnamed White House Official
They showed that concentrations of lead and.
Tracy Mumford
Chlorine in the air briefly surged to dangerous levels.
Unnamed White House Official
Some toxins may also linger in homes.
Tracy Mumford
Near the burned out areas.
Unnamed White House Official
One woman in Altadena said her mattress, couch and rugs smelled like a chemical campfire. Other residents who've been returning say they.
Tracy Mumford
Feel like they're facing an invisible threat. Overall, it could take years for the.
Unnamed White House Official
Full health impact of the fires to.
Tracy Mumford
Become clear, and the toxins could eventually drive up the death toll. And finally, smugglers have tried to drive it across the border, sneak it through the airports, send it in the mail. U.S. customs officials have had to seize it. It's haggis, the traditional and slightly divisive Scottish dish of sheep innards, oatmeal and spices, all stuffed into a sheep's stomach.
Unnamed White House Official
Has been banned in the US since the 1970s because of food safety concerns.
Tracy Mumford
The Department of Agriculture forbids producing or importing any foods with one of haggis key ingredients, sheep lungs, which are ground up in the filling. Now, after years of trying and failing to get the ban overturned, one company.
Unnamed White House Official
In Scotland has decided to compromise on.
Tracy Mumford
Their recipe to break into the American market.
Unnamed White House Official
McSween has developed a new haggis that.
Tracy Mumford
Replaces sheep lung with lamb heart, which you can import into the US It'll hit stores next year. One butcher told the do I think that there's something to be said for textural difference that the lung adds to it?
Unnamed White House Official
Yes.
Tracy Mumford
Do I think the average consumer is going to notice? Probably not. Those are the headlines. I'm Tracy Mumford. We'll be back tomorrow.
Podcast Summary: The Headlines – "Trump’s Freezing Spree, and an ‘Invisible Threat’ in L.A."
Release Date: January 28, 2025 | Host: Tracy Mumford | Source: The New York Times
1. President Trump’s Aggressive Reshaping of the Federal Government
The episode opens with a deep dive into President Donald Trump’s continued efforts to restructure the federal government through a series of executive orders. From the cockpit of Air Force One, Trump declared the signing of numerous executive orders, emphasizing their success. At [00:36], Tracy Mumford reports:
“From the cabin of Air Force One. Yesterday, he added to the dozens of executive orders he's already signed. He directed the Pentagon to end diversity programs, moved to push openly transgender people out of the military, and ordered plans.”
In a notable exchange at [01:01], an unnamed White House Official discusses Trump’s directive for a new missile defense system:
“For a new missile defense system for.”
Trump sums up the administration's actions with confidence at [01:03]:
“The U.S. pretty good recap, wouldn't you say?”
These moves reflect Trump's broader strategy to align federal policies closely with his administration's priorities, often at the expense of established programs and diversity initiatives.
2. Dismantling the Justice Department
At [01:07], Mumford highlights a significant shake-up within the Justice Department:
“Trump's acting attorney general made good on the president's vows for retribution. He fired more than a dozen prosecutors.”
An unnamed official elaborates at [01:16]:
“Who worked on the criminal investigations into Trump.”
The official further explains the administration’s rationale:
“Those who were fired could not be trusted to, quote, faithfully implement the president's agenda.”
This purge underscores the administration's intent to consolidate power and eliminate potential opposition within federal institutions.
3. Suspended Federal Financial Assistance
Mumford proceeds to discuss a controversial memo from the White House Budget Office at [01:35]:
“The Trump administration paused all grants, loans, and federal financial assistance.”
The specifics remain unclear, but the administration asserts that this freeze will not impact essential services:
“It won't affect Medicare or Social Security benefits,” [Tracy Mumford, 01:58]
However, substantial funds allocated for state and local governments, disaster relief aid, education funding, and small business loans could be on hold. An unnamed official at [02:00] states:
“That federal programs are aligned with Trump's policy priorities.”
Legal experts question the administration’s authority to unilaterally halt congressional spending, hinting at potential constitutional conflicts since:
“Under the Constitution, Congress passes the spending bills. The president is supposed to execute them as written,” [Tracy Mumford, 02:04]
4. Halting Foreign Aid and PEPFAR
Further tightening fiscal controls, the Trump administration has also targeted foreign aid. At [02:23], Mumford details:
“Pausing nearly all aid payments to other countries, including support for a high profile American Health Initiative, PEPFAR, the president's Emergency Plan for AIDS Relief.”
An unnamed official adds at [02:33]:
“The company has investors reeling because it undercuts some of the major assumptions about what it takes to develop AI.”
Significantly, the administration not only paused PEPFAR's funding but also restricted access to its critical data and reports:
“It shut down access to all its data and reports and directed clinics to stop distributing HIV medications that were paid for with US money,” [Tracy Mumford, 02:46]
This drastic step threatens to undermine a program that has been instrumental in saving millions of lives globally since its inception by President George W. Bush.
5. The Rise of Deep Seat: A New AI Contender from China
Shifting focus to technology, the podcast examines the unexpected emergence of Deep Seat, a Chinese AI startup, and its repercussions on the global AI landscape. At [03:12], financial analysts express concern:
“Stock markets opened just a few minutes ago, and it's not pretty.”
An unnamed tech analyst explains at [03:16]:
“Artificial intelligence took a real hit today as American companies face the emergence of a new AI app from China.”
Trump himself comments on this development at [03:25]:
“Let's talk about Deep Seat because it is mind blowing and it is shaking this entire industry to its core.”
Deep Seat's breakthrough, revealed at [03:32], challenges the prevailing belief that massive investments in computer chips are essential for AI advancement:
“US companies like OpenAI, Microsoft, and Meta have said the key to success is computer chips. The more chips you have, the more powerful your AI product.”
Tracy Mumford notes at [04:08]:
“But Deepseek says its new AI model, which rivals competitors like ChatGPT, was made with just a fraction of the chips that US makers rely on. That has Wall Street rethinking whether the biggest players in the field were overhyped and overvalued.”
Marc Andreessen, a prominent Silicon Valley investor, likens Deep Seat's impact to a pivotal historical moment:
“The emergence of Deep Seat to the space race of the 20th century, calling its launch 'AI's Sputnik moment,'” [Tracy Mumford, 04:37]
A financial analyst underscores the gravity of this development at [04:51]:
“I believe that this is the real deal. I think this is a big moment in the history of AI development.”
This unforeseen competition raises critical questions about America's dominance in the AI sector and the sustainability of its market leaders.
6. Los Angeles Fires: An Invisible Health Threat
The podcast also covers the devastating fires in Los Angeles and their lingering health impacts. At [05:15], Mumford explains:
“Scientists and city officials are warning about the potential health impacts from this month's fires.”
Unlike typical wildfires, these fires engulfed entire neighborhoods, releasing a cocktail of toxic substances:
“They burned through brush and trees, these fires tore through entire neighborhoods, melting plastics, chemicals, and asbestos,” [Tracy Mumford, 05:25]
Detailed air quality measurements revealed at [05:40] alarming spikes in lead and chlorine levels:
“Concentrations of lead and chlorine in the air briefly surged to dangerous levels.”
Residents report long-lasting contamination in their homes:
“Some toxins may also linger in homes near the burned-out areas,” [Tracy Mumford, 05:49]
Affected individuals describe the persistent chemical odor:
“One woman in Altadena said her mattress, couch, and rugs smelled like a chemical campfire.”
The invisible threat posed by these toxins could have far-reaching health consequences, potentially increasing mortality rates over time:
“Overall, it could take years for the full health impact of the fires to become clear, and the toxins could eventually drive up the death toll,” [Tracy Mumford, 06:04]
7. The Battle to Import Haggis into the United States
Concluding the episode, the podcast shifts to a cultural clash involving the traditional Scottish dish, haggis. Despite its ban in the US since the 1970s due to food safety concerns, efforts to circumvent this prohibition continue. At [06:32], Mumford outlines:
“Smugglers have tried to drive it across the border, sneak it through the airports, send it in the mail. U.S. customs officials have had to seize it.”
Haggis’s main ingredient, sheep lungs, are prohibited under Department of Agriculture regulations:
“The Department of Agriculture forbids producing or importing any foods with one of haggis’ key ingredients, sheep lungs, which are ground up in the filling,” [Tracy Mumford, 06:38]
However, innovation from Scotland offers a potential breakthrough. A company named McSween has adapted the recipe by replacing sheep lung with lamb heart, a permissible ingredient:
“McSween has developed a new haggis that replaces sheep lung with lamb heart, which you can import into the US. It'll hit stores next year,” [Tracy Mumford, 06:55]
A butcher shares insights on the recipe modification at [07:01]:
“Do I think that there's something to be said for textural difference that the lung adds to it?”
Responding to consumer acceptance, the butcher adds:
“Do I think the average consumer is going to notice? Probably not.”
This compromise paves the way for haggis to finally enter the American market, bridging cultural divides through culinary adaptation.
Conclusion
In this episode of The Headlines, Tracy Mumford provides an incisive overview of President Trump’s extensive use of executive orders to reshape federal and foreign policies, the controversial suspension of federal financial assistance, and significant shifts in the global AI landscape with China's Deep Seat challenging US dominance. Additionally, the podcast sheds light on the severe health impacts of unprecedented wildfires in Los Angeles and the ongoing efforts to introduce traditional Scottish haggis into the US market. The discussions are enriched with expert insights and firsthand accounts, offering listeners a comprehensive understanding of these pivotal issues shaping the current socio-political and economic climate.