Trump Blames D.C. Plane Crash on DEI, Without Citing Evidence

Summary

WSJ What’s News: Trump Blames D.C. Plane Crash on DEI, Without Citing Evidence

Episode Release Date: January 30, 2025
Host: Alex Osola
Produced by: Pierre Bienname, Anthony Bansi, and Michael Kosmides

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1. Deadly D.C. Plane Crash and Trump's Controversial Statement

The episode opens with a tragic report of a plane crash near Washington, D.C.'s Reagan National Airport. The collision involved a commercial jet carrying 64 passengers, including U.S. figure skaters and Russian former world champions, and a military helicopter with three troops. This incident marks the deadliest plane crash on U.S. soil in over two decades.

President Trump's Claims: In the aftermath, President Trump attributed the crash to diversity, equity, and inclusion (DEI) initiatives within the Federal Aviation Administration (FAA), stating, “Because I have common sense, okay? And unfortunately, a lot of people don't” (02:11). However, he did not provide substantive evidence to support his claims. The National Transportation Safety Board (NTSB) has yet to recover the flight data recorders, leaving the investigation ongoing.

Political Reactions: Former Transportation Secretary Pete Buttigieg criticized Trump’s remarks as “despicable at a time of tragedy,” challenging the president’s unfounded assertions (02:27). Additionally, there was no immediate clarity on whether the Biden administration had indeed altered FAA hiring standards.

2. US Economic Growth and Consumer Spending

Despite the somber news, the episode delves into the state of the U.S. economy. The Commerce Department reported a GDP growth of 2.5% in 2024, a slowdown from the 3.2% growth in 2023.

Insight from Harriet Tory: WSJ economics correspondent Harriet Tory explains that consumer spending was the primary driver of economic growth in 2024. “[Consumers] were really the driving force of economic growth in 2024. They really performed very strongly” (03:08). Factors contributing to this robust consumer activity included low unemployment rates, wage growth, and easing inflation. However, Tory also highlighted rising core inflation in the fourth quarter as a concern for the Federal Reserve.

3. Social Trends: 'No Buy 2025'

Shifting focus to consumer behavior, the podcast discusses the emerging "No Buy 2025" trend, where individuals are encouraged to minimize purchases.

Annemarie Alcantara’s Analysis: Annemarie Alcantara from the WSJ’s Internet culture coverage attributes this trend to persistent inflation, accumulated personal debts, and overspending during the holiday season. “[Inflation] has been top of mind for so many consumers,” she explains, emphasizing the impact of fluctuating prices and financial strain on purchasing decisions (05:06).

4. Market Updates: Stock Indices and ECB Rate Cuts

The financial markets saw a positive close for the major U.S. stock indices, with the Nasdaq up by 0.25%, the Dow Jones by 0.4%, and the S&P 500 by 0.5%. Conversely, American Airlines experienced a 2.5% decline in shares following the plane crash.

European Central Bank Moves: In Europe, the European Central Bank (ECB) reduced interest rates by a quarter point, signaling potential further cuts to stimulate the stagnant eurozone economy. This decision comes amid economic stagnation and concerns over exposure to U.S. trade tariffs (06:44).

5. US Office Real Estate Market Rebound

After a prolonged downturn, there are signs of recovery in the U.S. office real estate market. Investor interest is resurging, drawn by historically low property prices.

Reporter Peter Grant’s Insights: Peter Grant notes, “there are bargains to be had” as investors seize opportunities to purchase undervalued office buildings (07:37). Strategies include converting empty office spaces into residential apartments and targeting buildings in prime locations with high demand. However, challenges persist with record vacancies and cautious participation from major institutions like pension funds.

6. Political Nominees' Confirmation Hearings

The episode covers the contentious confirmation hearings of three of President Trump’s nominees:

• Robert F. Kennedy Jr. for Health Secretary: Faced skepticism from senators regarding his qualifications and policy stances.

• Tulsi Gabbard for Director of National Intelligence: Disappointed both Democrats and Republicans by not denouncing Edward Snowden as a traitor, though she retained some support from GOP lawmakers.

• Kash Patel for FBI Director: Democrats questioned his independence from Trump, but no significant issues were uncovered, and Republicans largely supported his nomination (10:02).

7. Tech Sector: Apple's iPhone Sales and Intel's Slump

Apple’s Performance: Apple reported a decline in iPhone sales for the December quarter, indicating that its new artificial intelligence (AI) initiatives have yet to drive significant growth. Total revenue reached $124.3 billion, a 4% increase year-over-year, yet sales in China fell by over 11%, missing analyst expectations.

Intel’s Struggles: Similarly, chipmaker Intel reported a 7% drop in fourth-quarter sales to $14.3 billion and a net loss of $126 million, although these figures were slightly better than analysts projected (10:02).

8. Scientific Breakthrough: Organic Matter on Asteroid Bennu

In a groundbreaking discovery, planetary scientists identified organic matter essential to life in a sample from asteroid Bennu. This finding supports the hypothesis that such asteroids could have seeded life on Earth and potentially other celestial bodies.

Expert Commentary by Eric Kneeler: Eric Kneeler highlights the significance, stating, “This asteroid contained the building blocks of life that have never, ever seen before on any other asteroid or meteorite” (12:01). The research raises intriguing questions about why life did not develop on Bennu itself and whether similar conditions exist elsewhere in the solar system.

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Conclusion

The episode of WSJ’s "What’s News" encapsulates a broad spectrum of pressing issues, from political controversies and economic trends to significant scientific discoveries. With insightful analyses and expert commentary, listeners are provided with a comprehensive overview of current events shaping the world.

Notable Quotes:

• President Trump on FAA Standards: “Because I have common sense, okay? And unfortunately, a lot of people don't.” (02:11)

• Harriet Tory on Economic Growth: “[Consumers] were really the driving force of economic growth in 2024. They really performed very strongly.” (03:08)

• Peter Grant on Office Market: “There are bargains to be had.” (07:37)

• Eric Kneeler on Asteroid Bennu: “This asteroid contained the building blocks of life that have never, ever seen before on any other asteroid or meteorite.” (12:01)

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For those interested in the latest developments and in-depth analyses, tuning into WSJ’s "What’s News" provides a valuable resource for staying informed.

Transcript

[Ryan Reynolds]

Hey there, Ryan Reynolds here. It's a new year and you know what that means. No, not the diet resolutions. A way for us all to try and do a little bit better than we did last year. And my resolution, unlike big wireless, is to not be a raging and raise the price of wireless on you every chance I get. Give it a [e-mail] switch $45 upfront.

[Alex Osola]

Payment required equivalent to $15 per month. New customers on first 3 month plan only taxes and fees, extra speed slower above 40 gigabytes on unlimited. See mintmobile.com for details. No survivors have been found from last night's plane crash, which President Trump blamed on diversity initiatives. Plus, the US economy is entering an uncertain 2025 after slower growth last year.

[Harriet Tory]

Consumers were really the driving force of economic growth in 2024. They really performed very strongly.

[Alex Osola]

And is the office real estate market finally starting to turn around? It's Thursday, January 30th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. Let's start with last night's deadly air crash. As we've been reporting, a plane carrying 64 passengers collided with a military helicopter carrying three troops near Washington, DC's Reagan National Airport, which has one of the most congested airspaces in the U.S. no survivors have been found. Among the Jet's passengers were U.S. figure skaters, coaches and relatives returning from a training camp. Russian media said three former world champions were on board. The crash is the deadliest on US Soil in more than two decades. The National Transportation Safety Board, which is overseeing the investigation of the crash, said the aircraft's flight data recorders haven't been recovered yet. In an address this morning, President Trump claimed that the Federal Aviation Administration changed its standards under former President Joe Biden.

[Eric Kneeler]

The FAA is actively recruiting who suffer severe intellectual disabilities, psychiatric problems and other mental and physical conditions under a diversity and inclusion hiring initiatives spelled out on the agency's website.

[Alex Osola]

It wasn't immediately clear whether the Biden administration had changed hiring standards at the faa. When asked by reporters how he concluded that diversity initiatives were at fault, Trump.

[Eric Kneeler]

Said, because I have common sense, okay? And unfortunately, a lot of people don't.

[Alex Osola]

The president added later that he wasn't sure whether air traffic controllers were the cause of the crash. Former Transportation Secretary Pete Buttigieg called President Trump's criticism of the FAA and the prior administration, quote, despicable at a time of tragedy and disputed his characterization of events. The US Economy grew last year more slowly than the year before, but still at a solid pace. The Commerce Department said today that gross domestic product grew 2 1/2% in 2024, compared to 3.2% of growth in 2023. Here to tell us more about the numbers is WSJ economics correspondent Harriet Tory. Harriet, what drove this growth?

[Harriet Tory]

Consumers. In a word, consumers were really the driving force of economic growth in 2024. They really performed very strongly. And in the fourth quarter, consumer spending even picked up, which I think came as a surprise to a lot of people. Consumers enjoyed a low unemployment rate for most year and wages grew, inflation eased. So there were some good ingredients for people to feel comfortable about continuing their spending, and they did. That.

[Alex Osola]

Is the picture universally rosy though, for consumers?

[Harriet Tory]

There's a lot of uncertainty headed into 2025. We, of course have some proposals, policy proposals that some economists are worried will fire up inflation again, like for instance, worker deportations and tariffs on imports that could make goods more expensive. But generally speaking, you know, the labor market remains pretty steady and the Fed is holding rates at its current pretty high level in order to keep inflation in check. So things look pretty good from the consumer side. There are a few other things going on. We did see a bit of a dip in business investment in the fourth quarter. Businesses drew down their inventories rather than buying new stuff to put on their stock shelves. But when you look at a lot of the underlying demand, it's clear that the economy does still remain very strong. But one thing that we are seeing that is of some concerned to the Fed is inflationary pressures picked up a bit in the fourth quarter. If you look at core inflation in the fourth quarter, it was slightly higher than it was in the third quarter. And that is definitely a negative development.

[Alex Osola]

That was WSJ economics correspondent Harriet Tory. Thank you, Harriet.

[Harriet Tory]

Thanks so much.

[Alex Osola]

As we heard, consumers are buying, but apparently not all of them. For me, I love getting new clothes for my baby, but I love it even more when I don't have to pay for them. And I'm not the only one. The no buy 2025 trend on social media encourages people to purchase as little new stuff as possible. The youe Money Briefing podcast spoke with Annemarie Alcantara, who covers Internet culture for the Wall Street Journal, about what's driving the trend.

[Annemarie Alcantara]

It seems to come down to three reasons this year. Inflation, of course, has been top of mind for so many consumers. Just the ebb and flow of prices going up and down, feeling like they actually never go down. And then of course, lots of people have accumulated debt for various reasons, medical, personal, sorts of things like that. And then the holiday season. It felt like this year for some people they overspent on gifts for friends and family and are realizing now the wrapping paper is in the trash and the toys are cluttering their homes that maybe they overdid it a bit.

[Alex Osola]

To hear more from Annmarie Alcantara, listen to tomorrow's episode of the youe Money Briefing podcast. All three major US Stock indexes ended higher today. The Nasdaq was up a quarter of a percent, the dow rose about 0.4%, and the S&P 500 gained about half a percent. American Airlines shares declined 2.5% after the plane crash in Washington, D.C. that involved a jet operated by the carrier. The European Central bank has lowered interest rates by a quarter point and signaled more rate cuts to come. It's an effort by the ECB to boost economic activity in the stagnant eurozone. According to data published today, economic growth came to a standstill in the three months through December. Europe's export oriented economy is highly exposed to trade tariffs from the U.S. the continent's biggest export destination. Coming up, why Investors Are Finally Making New Bets on Offices that's after the break.

[Ryan Reynolds]

This episode is brought to you by Indeed. When your computer breaks, you don't wait for it to magically start working again. You fix the problem. So why wait to hire the people your company desperately needs? Use Indeed's sponsored jobs to hire top talent fast. And even better, you only pay for results. There's no need to wait. Speed up your hiring with a $75 sponsored job credit@ Indeed.com podcast. Terms and conditions apply.

[Alex Osola]

We've talked a lot on the show about the troubled US Office market. Well, for the first time in five years, the outlook for that market seems brighter. Investors who might have shunned offices in the past are coming back and making new bets on office properties. My colleague Anthony Bansi spoke with reporter Peter Grant about why investors are returning to the market.

[Peter Grant]

Well, for one thing, the market basically crashed after the pandemic emptied out office districts and higher interest rates sent commercial property prices down. And so now as the market is beginning to stabilize, investors are looking at these low prices and say, wow, there are bargains to be had and they're beginning to explore and they're beginning to start buying again.

[Alex Osola]

So are they looking out for any particular properties?

[Peter Grant]

There are a lot of different strategies that they're pursuing. One is just to buy empty buildings and basically knock them down and turn them into apartment buildings. That's one play. Other plays are looking at the fact that leasing is beginning to stabilize and demand for office is beginning to come back because companies increasingly are requiring their workers to be back at the office more of the time. Not five days a week, but more of the time. And that's increasing office demand. The tricky part, though, is that it's not across the board. Demand is focusing on those buildings, which have great locations, a lot of amenities, and are the kind of places that businesses want to locate so their workers want to go to the office.

[Ryan Reynolds]

Does that mean that this turmoil within.

[Alex Osola]

The office market has been cleared?

[Peter Grant]

The office market is still very challenged. Yes, leasing activity is going up, but there are still record vacancies in most markets and companies are not taking as much space as they used to have. So even though buying has restarted in the office market, it still pales in comparison to what it used to be before the pandemic. For example, last year we saw about $64 billion worth of office building sales in the U.S. that was up about 20% from 20, but it was still only half of what it was in the years leading up to the pandemic. It's also important to look at the nature of who the buyers are that are now coming into the market. The big institutions like pension funds and college endowments that used to be big buyers of office, they're still on the sidelines. They're still very wary of returning to the market. So it's mostly those players with a lot of real estate savvy that are beginning to do the buying.

[Alex Osola]

That was reporter Peter Grant speaking with my colleague Anthony Bancy. Three of the president's most controversial nominees had their confirmation hearings today. Lawmakers bored in on a range of issues, from Edward Snowden to vaccines. Robert F. Kennedy Jr. S nomination for health secretary seemed shaky as senators spelled out their concerns during his second hearing, this time in front of the Health, Education, labor and Pensions Committee. Director of National Intelligence pick Tulsi Gabbard disappointed Democrats and Republicans alike in the Intelligence Committee for refusing to denounce Snowden as a traitor, though she received a pass on it from some GOP lawmakers. Democrats questioned whether Kash Patel, Trump's pick to be the director of the Federal Bureau of Investigation, could be independent from the president, but they unearthed no new bombshells that might threaten his nomination. Republicans seem to largely favor him. Apple's iPhone sales fell in the December quarter, a sign that its artificial intelligence software has yet to kick off a new cycle of growth for its most valuable product. Apple's total revenue was $124.3 billion, growing almost 4% from the same quarter last year. The company reported a sales drop in China of more than 11% to $18.5 billion, missing analysts expectations. And chipmaker intel reported a slump in fourth quarter sales and gave a gloomy outlook for the company's sales were $14.3 billion in the fourth quarter, down 7%, but better than what analysts expected. It reported a net loss of $126 million in the quarter. And finally, planetary scientists have discovered organic matter essential to life in a sample retrieved from an asteroid known as Bennu. The finding supports the theory that near Earth asteroids like Bennu seeded life on our world. Science reporter Eric Kneeler tells us about the significance of the discovery, detailed in two papers published yesterday.

[Eric Kneeler]

This asteroid contained the building blocks of life that have never, ever seen before on any other asteroid or meteorite. Chemical organic matter from RNA and DNA, amino acids, minerals, salts the basic material that you need to create life. And what it does is it raises the idea, the possibility that this asteroid or asteroids like it could have seeded life on early Earth, early Mars, other moons and other planets in our solar system. That's why it's so important.

[Alex Osola]

There are still a lot of questions, like why life didn't evolve on Bennu itself and whether similar conditions might be present today in other parts of the solar system. Meanwhile, more research is being conducted on the Bennu sample, and that's what's news for this Thursday afternoon. Today's show was produced by Pierre Bienname and Anthony Bansi, with supervising producer Michael Kosmides. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.