Inflation Report Beats Expectations, Dems Face Shutdown Pressure, Trump Warns Russia: AM Update 3/13

Summary

The Megyn Kelly Show: Inflation Report Beats Expectations, Dems Face Shutdown Pressure, Trump Warns Russia – AM Update 3/13

Release Date: March 13, 2025

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Introduction

In this episode of The Megyn Kelly Show, host Megyn Kelly delivers a comprehensive AM update covering significant economic indicators, political tensions surrounding a potential government shutdown, escalating rhetoric between President Trump and Russia, and substantial cuts to the Department of Education. The episode weaves through these critical issues, providing insightful analysis and featuring notable statements from key political figures.

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Economic Update: Inflation Declines and Market Optimism

The episode opens with encouraging economic news as the inflation rate for February falls more than expected.

• Inflation Rates: The overall inflation rate decreased to 2.8% from 3.0% in January, while the core inflation rate dropped to 3.1% from 3.2%—both figures beating analyst predictions. The Federal Reserve targets a 2% inflation rate.

  Notable Quote:

  Donald Trump [02:23]: "I think the markets are going to soar. There's tremendous optimism out there about our country in terms of regulations being cut, in terms of taxes being cut."

• Gas Prices: GasBuddy reports the average gas price has fallen to $3.03 per gallon, the lowest for March since 2021, marking a third consecutive weekly decline.

• Market Reactions: President Trump expresses positivity about the economic data, suggesting that these developments will bolster market confidence. The S&P 500 and NASDAQ experienced fluctuations but ultimately rose as investors anticipate further tariff increases.

• Oil Production: Trump highlights the administration's focus on unlocking oil production, reversing prior restrictions to stimulate economic growth.

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Government Shutdown: Democratic Concerns and Senate Stalemate

A significant portion of the discussion centers on the looming threat of a government shutdown and the Democrats' internal conflicts regarding funding legislation.

• Democratic Stance: Despite President Trump's aggressive rhetoric, some Democrats are hesitant to allow a government shutdown, recognizing the potential economic repercussions.

  Notable Quotes:

  Chuck Schumer [05:14]: "We don't agree with what's been sent to us. But you know, if we withhold our votes, that is going to shut the government down. And I think that's one of our core responsibilities in the Senate or in the government here."

  J.D. Vance [05:30]: "We could wind up in a situation where maybe this administration decides to leave parts of the government that provide valuable services to the American people close permanently."

• Senate Dynamics: Senate Majority Leader Chuck Schumer asserts party unity, though signs suggest fractures within the Democratic ranks. Key Senators express varying degrees of support and opposition, with some, like Pennsylvania Senator John Fetterman, committing to voting yes, while others remain undecided or propose amendments.

• Public Opinion: A CNN poll reveals that 61% of Americans disapprove of the use of tariffs, and 56% disapprove of the current state of the economy, highlighting public discontent that could influence legislative actions.

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US-Russia Relations: Ceasefire Efforts Amidst Military Escalation

The geopolitical landscape is tense as the US seeks to mediate a ceasefire in the ongoing conflict between Ukraine and Russia, amidst sharp exchanges between President Trump and Russian officials.

• Ceasefire Negotiations: Special envoy Steve Witkoff is dispatched to Russia to facilitate ceasefire discussions. However, Russian officials remain skeptical, with Foreign Ministry spokespersons asserting Moscow's independence in war decisions.

  Notable Quotes:

  Donald Trump [09:34]: "There are things you could do that wouldn't be pleasant. In a financial sense, I can do things financially that would be very bad for Russia. I don't want to do that because I want to get peace. But in a financial sense, yeah, we could do things very bad for Russia."

  Marco Rubio [09:10]: "He will keep the cease fire, considering that he's broken them in the past."

• Military Developments: Russia is reported to be tightening its grip around 10,000 Ukrainian troops in the Kursk region, threatening the stability of Ukrainian-held territories.

• President Trump's Strategy: Emphasizing economic pressure, Trump signals a willingness to impose severe financial sanctions on Russia to compel a ceasefire, underscoring the administration's strategic approach to international conflicts.

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Department of Education Cuts: Redefining Federal Involvement in Education

A controversial decision by the Trump administration to slash the Department of Education’s workforce by 50% marks a significant shift in federal education policy.

• Administration's Rationale: President Trump argues that the Department of Education is inefficient and costly, advocating for a shift towards block grants that grant states more autonomy in education management.

  Notable Quotes:

  Donald Trump [12:44]: "But now Department of Education, maybe more so than any other place, has a lot of people that can be cut. They're number one, not showing up to work. Number two, they're not doing a good job."

• Secretary of Education Linda McMahon's Response: McMahon assures that essential programs and funds remain unaffected, emphasizing the administration’s commitment to maintaining critical educational services.

  Notable Quotes:

  Linda McMahon [11:24]: "We wanted to make sure that we kept all of the right people and the good people to make sure that the outward facing programs, the grants, the appropriations that come from Congress, all of that are being met."

• Impact on Public Education: Critics, including leaders of teachers' unions, label the cuts as detrimental to public education, arguing that they undermine federal support and threaten the quality of educational services.

  Notable Quotes:

  Linda McMahon [12:02]: "It's a disaster symbolically as much as it's a disaster in reality. Think about a country whose president basically says as their first acts, I'm getting rid of education."

• Educational Funding Trends: Despite significant funding increases since 1979, public schools have seen minimal improvements in test scores, a point highlighted by President Trump to justify the proposed cuts.

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Legal Spotlight: Mahmoud Khalil’s Deportation Battle and Immigration Policies

The episode also delves into the high-profile case of Mahmoud Khalil, a former Columbia University activist facing deportation, reflecting broader immigration policies under the Trump administration.

• Case Details: Mahmoud Khalil, charged with supporting terrorist organizations Hamas and Hezbollah, is contesting his deportation from a Louisiana ICE facility. His legal team argues that his deportation violates the First Amendment by suppressing lawful dissent.

  Notable Quotes:

  Marco Rubio [15:08]: "No one has a right to a green card, by the way. So when you apply for a student visa or any visa to enter the United States, we have a right to deny you for virtually any reason."

• Government's Position: The administration emphasizes national security concerns, asserting that individuals like Khalil, who are implicated in activism perceived as threatening, should be denied entry or deported.

• Legal Proceedings: Khalil's lawyers are preparing to file an updated petition, while federal prosecutors seek to move his trial to jurisdictions they deem more appropriate, citing concerns over bias.

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Conclusion

Megyn Kelly wraps up the episode by previewing upcoming segments, including her investigative series on the mysterious disappearance of baby Lisa Irwin. The episode provides listeners with a thorough overview of pressing economic indicators, political maneuverings, international conflicts, and significant policy shifts, all underscored by direct quotations from influential leaders.

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Notable Advertisements Skipped

Advertisements for Birch Gold and Grand Canyon University were present in the transcript but were excluded from this summary to maintain focus on the episode's core content.

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Final Thoughts

This episode of The Megyn Kelly Show offers a multifaceted exploration of current events, blending economic analysis with political strategy and international diplomacy. Through detailed reporting and direct quotes, listeners gain a nuanced understanding of the challenges and developments shaping the national and global landscape as of March 13, 2025.

Transcript

[Linda McMahon]

Foreign.

[Megyn Kelly]

Good morning everyone. I'm Megyn Kelly. It's Thursday, March 13, 2025 and this is your AM update.

[Donald Trump]

I think the markets are going to soar. This tremendous optimism out there.

[Megyn Kelly]

The White House touting better than expected inflation numbers as markets shake in anticipation of further tariffs.

[Chuck Schumer]

And I think that's one of our core responsibilities in the Senate or in the government here to ever let you allow the government to shut down.

[Megyn Kelly]

Despite earlier tough talk, some Democrats balk at the prospect of a government shutdown. President Trump suggests he's ready to inflict economic pain on the Russians as Kremlin officials react coldly to calls for a ceasefire. All that and more coming up in just a moment on your AM Update.

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[Megyn Kelly]

Some good economic news for President Trump. The inflation rate declined more than expected in February, coming in at 2.8% down from 3.0 in January. The core inflation rate, which excludes more volatile items like food and energy, also cooled to 3.1%, down from 3.2, both figures coming in lower than analysts had predicted. The Federal Reserve's target rate for inflation is 2%. GasBuddy reporting the average price of gas dropping for the third straight week now at $3.03 per gallon. That's the lowest average price for gasoline in the month of March since 2021. President Trump reacting positively to the news from the White House.

[Donald Trump]

I think the markets are going to soar. There's tremendous optimism out there about our country in terms of regulations being cut, in terms of taxes being cut. Oil is down to $65 a barrel and that's faster than I would have. We put on the Gas. We stepped in the gas in order to get oil.

[Megyn Kelly]

A key piece of the Trump administration's economic plan, unlocking oil production. On his first day in office, Mr. Trump signing orders, increasing oil and gas drilling on public lands and offshore areas, reversing previous restrictions. Some additional context, putting the new economic numbers in perspective. The only tariffs in place in February were the initial 10% duties on Chinese imports. Wednesday markets swinging wildly. The S&P 500 and NASDAQ ultimately rising as investors weigh a solid inflation report with anticipation of more expected tariff increases. President Trump seated next to Irish Prime Minister Michal Martin in the Oval Office, again signaling his trade war is just getting started.

[Donald Trump]

The EU was set up in order to take advantage of the United States, including Ireland.

[J.D. Vance]

Is Ireland taking advantage of the U.S.

[Donald Trump]

Of course they are. We had leaders that didn't have a clue, or let's say they weren't business people, but they didn't have a clue what was happening. And all of a sudden Ireland has, you know, our pharmaceutical companies. When the pharmaceutical companies started to go to Ireland, I would have said, that's okay. If you want to go to Ireland, I think it's great. But if you want to sell anything into the United States, I'm going to put a 200% tariff on you. So you're never going to be able to sell anything into the United States. You know what they would have done? They would have stayed here.

[Megyn Kelly]

Next week, the Federal Reserve is set to announce a decision on interest rates. While President Trump has repeatedly called for the rates to be lowered, the Fed operates independently from the government. Last Friday, Fed Chair Jerome Powell saying they're in no hurry to make any adjustments, suggesting interest rates are likely to stay in their current range 4.25 to 4.5%. A new CNN poll shows Americans may be souring on the tariff wars. 61% of Americans disapproving of the use of tariffs, compared to 39% who approve. Overall on the economy, 56% say they disapprove, versus 44% approving, worse than at any point during President Trump's first term in office. The government shutdown deadline ticking even closer now as the Senate weighs this six month funding extension. The bill requires 60 votes to pass in the Senate, meaning some Democrat support is required in the lead up to the House vote on Tuesday. Senate Dems talking tough, calling the bill horrible and a power grab by President Trump and Elon Musk. Now with the possibility of forcing a shutdown in their hands, some Dems are balking.

[Chuck Schumer]

We don't agree with what's been sent to us. But you know, if we withhold our votes, that is going to shut the government down. And I think that's one of our core responsibilities in the Senate or in the government here. To ever allow the government government to shut down.

[J.D. Vance]

We could wind up in a situation where maybe this administration decides to leave parts of the government that provide valuable services to the American people close permanently.

[Megyn Kelly]

Pennsylvania Senator John Fetterman telling reporters he will vote yes. The Hill reporting one unnamed Senate Democrat saying, quote, I can't say we have a strategy. There are a lot of people who haven't made a decision. Independent Senator from Maine Angus King, who typically votes with the Democrats, telling the Washington Post, quote, it's a choice between two terrible alternatives. Some Dems are worried a shutdown will backfire on them, allowing the Doge team to permanently shutter even more of the government. In a shutdown, non essential employees are furloughed and essential employees continue working. The Post reporting some Dems argue a shutdown could allow DOGE to more easily cut the employees deemed non essential. Democrat Senator from Virginia Tim Kaine, leaving his options open, telling Politico he would like some amendments added to this bill. However, any additional amendments would need to be approved by the House, which is not likely to agree on anything that increases government spending. The deadline is 11:59pm on Friday, Senate Majority Leader Chuck Schumer saying his party is united, which is not true, and that right now the GOP does not have the votes to avoid a Shutdown. Coming up, U.S. diplomats bringing an offer of peace to the Kremlin as President Trump suggests a willingness to ratchet up pressure on the Russians and the Department of Education, slashed by a whopping 50%. Which programs stay and which ones go? All that and more in just a moment.

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[Megyn Kelly]

Russia's military advances in Ukraine as the US Sends an envoy to the Kremlin to pursue a ceasefire. The Russian army is close to surrounding 10,000 Ukrainian troops in the Kursk region of Russia. Ukraine captured this bit of Russian territory last August once, floating the idea of exchanging it back for captured Ukrainian territory. Most of it, however, has been regained by Russia, but not all in recent days. The Ukrainian hold on the area falling into serious jeopardy. With Russian President Vladimir Putin on Wednesday telling his forces any captured Ukrainian soldiers in Kursk will be treated as terrorists. As the battlefield erupts in chaos, peace negotiators diligently strive to broker a ceasefire. President Trump and Vice President J.D. vance expressing cautious optimism on the next stages of ending the war.

[J.D. Vance]

We've got some conversations that are happening on the phone and in person with some of our representatives over the next couple of days. As the President said, we think that we're in a very good place where the Ukrainians have agreed to a cease fire and we're now going to see whether we can get the Russians to agree to a cease fire, too.

[Marco Rubio]

He will keep the cease fire, considering that he's broken them in the past.

[Donald Trump]

I haven't, we haven't spoken to him yet with substance because we just found out and we just were able to get Ukraine to agree. So we're going to know very soon. I've gotten some positive messages, but a positive message means nothing. This is a very serious situation.

[Megyn Kelly]

Secretary of State Marco Rubio plainly laying out the stakes for both sides.

[Marco Rubio]

There is no military solution to this conflict. Neither side can militarily achieve their maximalist gains, their maximalist goals. Neither side can achieve them through the military side. The only way this conflict can end is through negotiation. That's the only way you're going to have peace.

[Megyn Kelly]

Special envoy Steve Witkoff is traveling to Russia for in person negotiations in advance of his arrival. Kremlin officials responding coldly to the Ukrainian acceptance of a ceasefire. The Guardian reporting a Russian Foreign Ministry spokesperson as saying, quote, moscow will make its own decisions about the war and not follow the lead set by Washington and Kyiv. Mr. Lavrov adding, quote, it is impossible to rely on the goodwill of opponents who have declared the goal of inflicting strategic defeat on Russia, despite earlier Western criticism that President Trump was too lenient on Russia in negotiations. Mr. Trump now signaling a willingness to apply plenty of pressure, just as he did with Ukraine.

[Donald Trump]

There are things you could do that wouldn't be pleasant. In a financial sense, I can do things financially that would be very bad for Russia. I don't want to do that because I want to get peace. But in a financial sense, yeah, we could do things very bad for Russia. It would be devastating for Russia, but I don't want to do that.

[Megyn Kelly]

President Trump taking the most dramatic action yet to put an end to the Department of Education slashing its workforce by 50%. The move marking a significant escalation in his long standing push to reduce the federal government's size and specifically its role in in education. The department enshrined in a law by Congress, would require an act of Congress to be fully abolished. But with a divided legislature, that battle could take years. In the meantime, education secretary Linda McMahon telling Fox exactly what was cut and what stays, at least for now.

[Linda McMahon]

We wanted to make sure that we kept all of the right people and the good people to make sure that the outward facing programs, the grants, the appropriations that come from Congress, all of that are being met. And none of that's going to fall through the cracks. Congress appropriates the money that is going through Title 1 to IDEA programs. What's that stand for? Well, do you know what? I'm not sure I can tell you exactly what it stands for, except that it's the Programs for Disabled and Needs.

[Megyn Kelly]

Individuals with Disabilities Act. The administration insisting essential congressionally mandated funding remains intact. Heads of the teachers unions arguing the cuts are an attack on public education.

[Linda McMahon]

It's a disaster symbolically as much as it's a disaster in reality. Think about a country whose president basically says as their first acts, I'm getting rid of education. Let's be clear, this administration is focused on destroying public education.

[Megyn Kelly]

Since the inception of the Department of education in 1979, spending on public education has skyrocketed. U.S. public schools spend an average of more than $16,000 per student each year, a 13% increase over the previous 10 years. In that same time, overall test scores have shown little to zero improvement. President Trump telling reporters the Education Department is the easiest to make cuts from.

[Donald Trump]

But now Department of Education, maybe more so than any other place, has a lot of people that can be cut. They're number one, not showing up to work. Number two, they're not doing a good job. And if you look at the charts compared, because they have numerous charts where they do the top 40, we're at number 37, 38, 39 and 40. And recently they hit during Biden's last few days, they hit last. So they were number 40. And yet we're number one in cost per pupil. We're going to move the Department of Education, we're going to move education into the states so that the states, instead of bureaucrats working in Washington, so that the states can run education.

[Megyn Kelly]

The Trump administration aims to restructure education funding, focusing on block grants that would allow states more freedom to choose how to educate their students. Former Columbia University student agitator Mahmoud Khalil remains in a Louisiana ICE detention facility today. Mr. Khalil did not attend Wednesday's packed courthouse hearing, the first step in his court battle to prevent deportation. Mr. Kahlil born in Syria, Kahlil filed his challenge in the Southern District of New York, government officials requesting a change of venue, arguing that the SDNY is not the appropriate jurisdiction. It's also not the most conservative one. Federal prosecutors urging the judge to move the trial to New Jersey, where Mr. Kahlil was first detained, or to Louisiana, where he is currently being held. Kahlil was a prominent organizer of the Columbia University protests last year that led to clashes with police and more than 100 arrests. Students established a Gaza solidarity encampment on campus, often chanting anti Israel, anti Semitic slogans and blocking Jewish students access to campus spaces. The group Mr. Kahlil represented as a master's degree candidate, Columbia University apartheid divestiture reportedly sympathizes with terrorist groups Hamas and Hezbollah and seeks the, quote, end of Western civilization. Mr. Kahlil's attorney saying in a statement their client was, quote, chosen as an example to stifle entirely lawful dissent in violation of the First Amendment. Secretary of State Marco Rubio, who oversees green card allocation, responding on Wednesday.

[Marco Rubio]

No one has a right to a green card, by the way. So when you apply for a student visa or any visa to enter the United States, we have a right to deny you for virtually any reason. But I think being a supporter of Hamas and coming into our universities and turning them upside down and being complicit in what are clearly crimes of vandalization, complicit in shutting down learning institutions. There are kids at these schools that can't go to class. You're afraid to go to class because these lunatics are running around with covers on their face screaming terrifying things. If you told us that's what you intended to do when you came to America, we would have never let you in.

[Megyn Kelly]

Mr. Khalil's lawyers are expected to file an updated version of their petition later today. And that'll do it for your AM Update. I'm Megan Kelly. Join me back here all week for our special series Megyn Kelly Investigates on the disappearance of baby Lisa Irwin, a 10 month old girl who disappeared from her crib in the dark of night. It will air on SiriusXM Triumph Channel 111 at noon east on YouTube.com Megyn Kelly and all podcast platforms on the Megyn Kelly show feed.