WSJ What’s News - Trump’s Shock-and-Awe Crackdown Sows Fear Among Migrants
Release Date: January 29, 2025
Host: Alex Osola, Michelle Hackman
Produced by: Pierre Bienname, Anthony Bansi, Michael Kosmides

Federal Reserve Holds Interest Rates Steady

The episode begins with a significant update from the Federal Reserve. On January 29th, the Fed announced it would maintain current interest rates, marking its first decision since President Trump assumed office.

Key Highlights:

• Fed Chair Jerome Powell's Statement: Powell emphasized a "wait and see" approach as the Fed evaluates the necessity of further rate adjustments from the recent two-decade high. (01:03)

• Spencer Jacob’s Insight: Spencer Jacob, Global Editor of Hurt on the Street, explains, “With our policy stance significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance.” (01:36)

• Market Reactions: Laura Ku Sisto notes that the Fed's decision led to immediate market reactions due to the removal of language regarding unemployment and inflation, suggesting concerns about the inflationary impacts of Trump’s policies. (01:59)

• Future Projections: Laura further discusses that the futures market now estimates a 77% chance of no rate changes in the upcoming Fed meeting seven weeks away, with more clarity expected by mid-March on the effects of Trump’s policies. (02:30)

Robert F. Kennedy Jr.'s Confirmation Hearing

Transitioning to political developments, the focus shifts to Robert F. Kennedy Jr.'s confirmation hearings for the position of Health Secretary.

Key Highlights:

• Spencer Jacob’s Report: RFK Jr. has managed to navigate controversial topics by deferring to President Trump, particularly on vaccines and abortion, aiming to reassure both Republicans and Democrats. (04:53)

• RFK Jr.’s Stance on Vaccines: Despite past criticisms, RFK Jr. asserts, “I believe that vaccines play a critical role in healthcare. All of my kids are vaccinated. I've written many books on vaccines... I am not anti-vaccine.” (05:59)

• Hearing Dynamics: The hearings have been highly partisan, with RFK Jr. facing intense scrutiny from the Senate Finance Committee. Although he has stumbled on some technical questions, there haven't been any significant breakthroughs against him. (06:24)

Trump’s Intensified Immigration Crackdown

The core segment of the episode delves into President Trump’s aggressive immigration policies, which have heightened fears among migrant communities across the country.

Key Highlights:

• Michelle Hackman’s Analysis: She explains that ICE continues to target individuals with criminal backgrounds but has recently shifted to broader quotas, aiming to arrest 1,000 to 1,500 migrants daily. This shift has led to an increase in targeting non-criminals for ease of arrest. (08:58)

• Public Relations Strategy: Hackman emphasizes that the administration is amplifying these efforts to appear effective and fulfill campaign promises. “They are really trying to amplify each of those efforts and make it look huge so that they can satisfy their voters and their base...” (00:50)

• Impact on Immigrant Communities: Immigrants are experiencing heightened fear, leading to behavioral changes such as avoiding public transportation and traveling to safer neighborhoods to evade detection. A construction worker mentioned avoiding his usual supermarket and opting for locations in predominantly white neighborhoods to reduce the risk of being apprehended. (09:47)

• Michelle Hackman on PR Campaign: She elaborates, “The big thing that we've seen is... they are really trying to amplify each of those efforts and make it look huge so that they can satisfy their voters and their base...” (08:58)

Market and Corporate Earnings Overview

The episode also covers the day's market movements and notable corporate earnings:

Key Highlights:

• Stock Market Declines: Following the Fed’s decision, major indices like the Dow, S&P 500, and NASDAQ closed lower by approximately 0.3% and 0.5% respectively. (03:21)

• Corporate Earnings:

  • Tesla: Reported a 3% increase in fourth-quarter profits, driven by growth in energy and service sectors. (03:21)
  • Meta Platforms: Achieved record fourth-quarter revenue with a 21% increase, surpassing analysts' expectations, aided by advancements in artificial intelligence for its ad business. (03:21)
  • Microsoft: Reported a 12% rise in overall revenue to nearly $70 billion and a 10% increase in net income to about $24 billion, both exceeding forecasts. (03:21)

Additional Legal and Political Developments

The episode touches on other significant legal and political stories:

Key Highlights:

• Meta’s Settlement with Trump: Meta Platforms agreed to pay approximately $25 million to settle a 2021 lawsuit initiated by President Trump after his accounts were suspended following the Capitol attacks. (06:48)

• Bob Menendez’s Sentencing: Former New Jersey Democratic Senator Bob Menendez was sentenced to 11 years in prison after being found guilty of bribery, fraud, and illegal foreign agent offenses. His legal team has announced plans to appeal. (10:19)

• Harvey Weinstein’s New Trial: Disgraced producer Harvey Weinstein is set to face a new trial on sexual assault charges in New York starting April 15, following the overturning of his 2020 conviction due to significant judicial errors. (10:19)

Conclusion and Upcoming Segments

The episode concludes with a brief mention of the IRS tax season tips and promotions for the Wall Street Journal’s Money Briefing podcast, which will cover the latest tax rules, data safety, and free filing options.

Notable Quotes

• Michelle Hackman:
  “They are really trying to amplify each of those efforts and make it look huge so that they can satisfy their voters and their base that they're meeting the expectations of this mass deportation effort they promised.” (00:50)

• Spencer Jacob:
  “With our policy stance significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance.” (01:36)

• Michelle Hackman:
  “People are really scared. People have really already changed their behavior...” (09:47)

This comprehensive summary captures the key discussions, insights, and conclusions from the WSJ "What’s News" podcast episode, providing a clear and engaging overview for those who haven't listened.