WSJ What’s News – DOJ Releases Ghislaine Maxwell Interview Transcript

Date: August 22, 2025
Host: Sabrina Siddiqui (for The Wall Street Journal)
Main Theme:
A roundup of breaking business, economic, and political news, with deep dives into the Federal Reserve’s policy trajectory, newly released DOJ materials from the Epstein-Maxwell case, a declaration of famine in Gaza, and how U.S. retailers are navigating tariff-driven price hikes.

Federal Reserve Chair Jerome Powell’s Jackson Hole Speech

[00:33 – 04:37]

• Powell Signals Path to Potential Rate Cuts:
  Federal Reserve Chair Jerome Powell addressed the ongoing economic headwinds at Jackson Hole, hinting that the Fed may be open to cutting rates at its upcoming September meeting.

  “The Fed faces a challenging situation as tariffs drive up costs while the labor market appears to be softening.” – Sabrina Siddiqui [00:57]

• Labor Market in ‘Curious Balance’:

  • The labor market shows both declining supply and demand for workers, which Powell described as precarious.

    “This unusual situation suggests that downside risks to employment are rising, and if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.” – (Powell’s remarks, summarized by Nick Timiros) [01:37]

  • Despite pressure from President Trump for aggressive cuts, Powell remains cautious, not committing to a string of rate reductions.

• Expert Analysis – Nick Timiros, WSJ Chief Economics Correspondent:

  • On Powell’s tone:

    “He very clearly blessed market expectations of a rate cut in September, but he was careful about suggesting that this would be the beginning of a long string of rate cuts.” [02:20]

  • On economic outlook: Tariffs are raising goods prices, the labor market shows slack, and both the supply and demand for workers are down—possibly due to lower immigration and weak hiring.
  • On Fed Independence:

    “This Fed does not take anything into account other than what the economic outlook is, what the risks are to the Fed's goals... we will never deviate from that.” [04:10]

  • Result: Stocks surge post-speech, with multiple indices hitting new highs.

DOJ Releases Ghislaine Maxwell Interview Transcript

[04:43 – 06:47]

• Released Documents:
  • The Trump administration published a transcript and audio of a Justice Department official’s interview with Ghislaine Maxwell.
  • The move follows weeks of bipartisan criticism after initial foot-dragging over releasing investigative files tied to the Epstein case.
  • Maxwell, Epstein’s former associate, remains in prison, appealing her 20-year sentence for sex trafficking.
  • Previous WSJ reporting indicated President Trump’s name was mentioned in Epstein-related DOJ files, though the White House dismissed this as “fake news.”
  • Context: Maxwell’s conviction and Epstein’s death remain high-profile sources of controversy, fueling public demand for transparency.

    “The release comes as the Trump administration has faced weeks of criticism over its initial refusal to release documents from its investigation into Epstein, which some believed would show links between the disgraced financier and other powerful individuals.” – Sabrina Siddiqui [04:43]

Famine Declared in Gaza

[06:47 – 07:52]

• Historic Famine Declaration:

  • For the first time in Middle East history, the IPC (Integrated Food Security Phase Classification) officially declared famine conditions in and around Gaza City.
  • Margarita Senkadi, WSJ Reporter:
    • A famine is declared when:
      • Over 20% of households face extreme food scarcity.
      • 30%+ of children suffer acute malnutrition.
      • Hunger-related deaths documented.

    “Famine is a technical term... at least 20% of households need to face extreme lack of food, at least 30% of children need to suffer from acute malnutrition... and hunger-related deaths.” – Margarita Senkadi [06:55]

• Political Fallout:

  • Israel’s military dismissed the IPC’s findings, alleging bias and not accounting for Israeli aid efforts.
  • Israeli PM Netanyahu called the report “an outright lie.” [07:52]

How Big Retail Is Winning the Tariff Economy

[09:01 – 11:22]

• Winners and Losers Among Retailers:

  • Companies focused on deals and essentials (Walmart, Amazon, TJ Maxx) are outperforming others.

    “Retailers like Walmart, Amazon, TJ Maxx...are doing much better right now than the retailers that don’t offer that kind of thing as much.” – Sarah Nassauer, WSJ Retail Reporter [09:21]

  • Target lags behind, hampered by reliance on discretionary (non-essential) spending.

• Consumer Behavior Shifts:

  • Cautious spending persists for over a year; rising tariffs are amplifying the strain for low- and middle-income shoppers.

    “Overall, retailers say we’re seeing the same thing from consumers we’ve seen for over a year now, which is cautiousness.” – Nassauer [10:16]

• Absorbing Tariff Costs:

  • Retailers have so far muted price hikes by working through existing inventory and cutting costs but acknowledge more price increases are inevitable.
  • “It’s going to increase. But it remains to be seen exactly how they’re going to weather this. So far they have been able to offset a lot of those increases by cutting costs elsewhere, sourcing differently... So it’s a really big question mark, honestly.” – Nassauer [10:54]

Other Notable Headlines

[11:26 – 12:45]

• Apparel Retail Earnings:

  • Updates coming on Abercrombie & Fitch, The Gap, and American Eagle—focus: how they are managing tariffs/higher prices.

• Intel Developments:

  • President Trump announced the U.S. government is taking a nearly 10% stake in Intel amid financial struggles for the chipmaker and heavy CHIPS Act funding.

• John Bolton Probe:

  • FBI raids John Bolton’s Maryland home and D.C. office over potential mishandling of classified info.

    “No one is above the law.” – Kash Patel, FBI Director [12:20]

• Security in D.C.:

  • Defense Secretary Pete Hegseth authorizes National Guard soldiers in Washington, D.C. to carry weapons—a further ramp-up in capital security under the Trump administration.

Memorable Quotes & Moments

• “This Fed does not take anything into account other than what the economic outlook is, what the risks are... we will never deviate from that.” – Nick Timiros recounting Powell's stance [04:10]
• “Famine is a technical term... at least 20% of households need to face extreme lack of food, at least 30% of children need to suffer from acute malnutrition... and hunger-related deaths.” – Margarita Senkadi [06:55]
• “Retailers say we’re seeing the same thing from consumers for over a year now, which is cautiousness.” – Sarah Nassauer [10:16]

Important Timestamps

• Fed Rate Cut Outlook: [00:57–04:37]
• Maxwell Interview Release/Epstein Updates: [04:43–06:47]
• Gaza Famine Declaration: [06:47–07:52]
• Retail/Tariff Analysis: [09:01–11:22]
• Other Major Headlines: [11:26–12:45]

Overall, this WSJ ‘What’s News’ episode delivers a brisk, thorough survey of Friday’s most significant developments, balancing rapid-fire market updates with deep reporting on the intersection of politics, policy, and the global economy.