On this “Face the Nation with Margaret Brennan” broadcast, moderated by Margaret Brennan:
- Venezuelan opposition chief María Corina Machado
- Rep. Michael McCaul, Republican of Texas
- Trump financial adviser Gary Cohn
- Oklahoma Metropolis Mayor David Holt; Mesa, Arizona Mayor Mark Freeman; Kansas Metropolis, Missouri, Mayor Quinton Lucas; and Miami Mayor Eileen Higgins
Click on right here to browse full transcripts from 2026 of “Face the Nation with Margaret Brennan.”
MARGARET BRENNAN: I am Margaret Brennan in Washington.
And this week on Face the Nation: Anger at ICE persists throughout the nation, plus our interview with Venezuelan opposition chief and Nobel Peace Prize winner Maria Corina Machado.
After a whirlwind of conferences in Washington, Machado is projecting optimism about her nation’s future, at the same time as her personal future stays murky, with the celebration she defeated in a nationwide election nonetheless holding energy with the help of President Trump.
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DONALD TRUMP (President of the US): I feel she’s a really superb particular person, however I feel I’ve to say, on the similar time, the present management is doing an excellent job.
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MARGARET BRENNAN: We’ll speak to her completely.
In the meantime, the controversy over ICE immigration enforcement drives extra protests throughout the nation…
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MARGARET BRENNAN: … and sparks a struggle in Congress over funding for the Division of Homeland Safety. We’ll speak to Republican Congressman Michael McCaul.
Plus, a bipartisan dialog with 4 of America’s mayors on how they’re hanging a stability between native priorities and federal authority.
Lastly, President Trump’s prime financial adviser in his first time period, Gary Cohn, will be part of us. We’ll ask concerning the president’s new choose to guide the Federal Reserve.
It is all simply forward on Face the Nation.
Good morning, and welcome to Face the Nation.
Washington is waking as much as one other authorities shutdown, this time a partial one and hopefully brief, because the Home is anticipated to begin debate tomorrow on a funding bundle and a short-term extension of Homeland Safety funding.
We’ll get to all of that in only a second, however we need to start with the Trump administration’s actions right here within the Western Hemisphere. It was simply 4 weeks in the past that the U.S. army captured Venezuelan chief Nicolas Maduro. Since then, the U.S. has continued hanging alleged drug boats and seizing oil tankers, a part of Trump’s plan to coerce what stays of Maduro’s socialist authorities to make adjustments.
Yesterday, U.S. Ambassador Laura Dogu arrived in Caracas to supervise U.S. efforts. However calls to launch political prisoners and finish repression persist, and there’s a mounting push for a transition to elected management in Venezuela.
Nobel Peace Prize winner Maria Corina Machado is in Washington assembly with lawmakers and Trump officers to induce help for one more nationwide election. Her celebration received the final election, however was blocked by Maduro from taking workplace.
We spoke with Machado and started by asking her whether or not she thinks the stress is off the present regime after President Trump stated he had no plans for additional army motion contained in the nation.
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MARIA CORINA MACHADO (Venezuela Opposition Chief): I don’t suppose that the stress is being taken away. Really, all the things Delcy Rodriguez is at the moment doing is as a result of she’s complying with directions she’s getting from the US, and vital steps are being taken.
So, I feel that the message has been delivered, and, to this point, we’re seeing the ends in the actions taken by the regime and likewise within the temper and vitality that’s rising throughout the Venezuelan inhabitants.
MARGARET BRENNAN: Are you or is anybody in your motion in contact with Delcy Rodriguez, who’s the appearing president of Venezuela now?
MARIA CORINA MACHADO: No, indirectly.
MARGARET BRENNAN: No. Why not?
MARIA CORINA MACHADO: Nicely, we had provided, since we received the election by a landslide, that we have been prepared to – to agree within the phrases of a negotiated transition. They refused.
Quite the opposite, they determined to unleash the – the – essentially the most merciless, brutal repression wave. There are – as you already know, there have been 1000’s of political prisoners, and so they had not demonstrated any willingness to – to cease this cruelty, till January 3 arrived and – and occurred when it occurred.
So it despatched a transparent message to them, and so they’re beginning to understand that issues have modified for good. So, finally, they could perceive or – and even very quickly, that it’s of their greatest curiosity to – to just accept that the transition is unstoppable.
MARGARET BRENNAN: A transition that you just hope entails a democratic election in some unspecified time in the future.
Did Secretary Rubio offer you any sort of timeline for the American plans?
MARIA CORINA MACHADO: What I do have very clear is that the top consequence is identical, what we wish, what the Venezuelan folks have voted and struggled and struggle for, with large price and sacrifice, and what the US authorities and President Trump additionally needs.
MARGARET BRENNAN: However for the folks in Venezuela nonetheless dwelling beneath that regime, what has truly modified for them? And have they got the endurance to attend for what you are speaking about, which is mainly simply hoping that the Rodriguez authorities does what Donald Trump tells them to do?
MARIA CORINA MACHADO: Nicely, it is greater than hoping.
We’re seeing the outcomes, the actions. Are we there but? Not. And – and I feel it is a good level, what you talked about, endurance. How a lot endurance can the Venezuelan folks have?
As a result of, I imply, there have been over 1,000 political prisoners on January the first. Nonetheless, there are over 700. Not one army prisoner, political prisoner has been liberated.
MARGARET BRENNAN: Nicely, President Trump has talked quite a bit about Venezuela’s oil and its pure assets. Do you help the legislation that was simply handed that enables the Venezuelan authorities to denationalise the oil trade?
MARIA CORINA MACHADO: Nicely, to begin with, I don’t acknowledge the Nationwide Meeting as a reliable energy.
MARGARET BRENNAN: Sure.
MARIA CORINA MACHADO: It has not been acknowledged by the Venezuelan folks, not even by the American, U.S. – by the U.S. authorities.
MARGARET BRENNAN: Not legally. However, successfully, they…
MARIA CORINA MACHADO: It – so – so – sure, however no matter comes from that Nationwide Meeting has no legality, so – as a result of that is an illegitimate energy.
So, actually, these so-called reforms introduce optimistic indicators by way of what we, the Venezuelan folks, need sooner or later. We do not need socialism. We do not need the state proudly owning each single, you already know, facility or manufacturing heart.
We wish personal property, however that requires rule of legislation, long-term ensures for overseas funding, for native funding. However one factor that’s crucial of all, for my part, it is advisable to have folks, expertise, specialised, skilled, prepared to work and develop these enterprises.
What occurred with the Venezuelan specialised expertise? It was compelled to flee the nation, virtually a 3rd of our inhabitants. And these are folks which can be working throughout the rely – the world.
MARGARET BRENNAN: President Trump simply stated on digicam that United States goes to begin peeling again a few of these sanctions in order that Individuals can journey again to Venezuela. He is lifted the air restrictions.
MARIA CORINA MACHADO: Nicely, I feel…
MARGARET BRENNAN: Is it secure to go?
MARIA CORINA MACHADO: I feel it is very important take steps.
I feel these are indicators directed to a number of actors, at first to the regime, saying, that is going to maneuver ahead. There is no such thing as a method again. And – and – and the regime is aware of that no American citizen or Venezuelan citizen goes to return to a rustic that is nonetheless beneath the ability of Maduro regime and the cartel.
That is not going to occur. However – however these sorts of actions, I feel, give the proper…
MARGARET BRENNAN: Sure.
MARIA CORINA MACHADO: … indicators, in phrases that that is going to maneuver forward. And I do belief the president in what he has stated concerning how a lot he cares concerning the Venezuelan folks. That is one thing that I feel it was fairly important in our dialog.
MARGARET BRENNAN: If you happen to return to Venezuela now, would you be imprisoned? And has the American authorities stated that they’ll shield you, they’ll assure your security?
MARIA CORINA MACHADO: Nicely, you already know, issues are altering very quick in Venezuela.
If they’d captured me earlier than I left, I most likely would have been disappeared, or – or worse. Proper now, I do not suppose they might dare to kill me due to the US’ presence and stress and actions.
I do not know the way a lot chance of transferring I might have inside Venezuela. Definitely, they might be very afraid, as a result of the – the regime is aware of the connection, the intimate connection we now have, you already know, the Venezuelan folks and – and the management that received the election, the reliable authorities.
MARGARET BRENNAN: However you received that election, together with…
MARIA CORINA MACHADO: Edmundo.
MARGARET BRENNAN: … Edmundo Gonzalez on the prime of that ticket. Even the Trump administration acknowledged it. Secretary Rubio testified that to Congress.
However then the president of the US stood up there and stated to the general public that, regardless that you had received that election, you did not have the general public help. And I ponder for those who can perceive why they made that calculation.
MARIA CORINA MACHADO: I’ll focus in what he informed me in a non-public dialog, wanting one another within the eyes.
And I – and I actually consider he understands the character of this regime. All of them know that Delcy Rodriguez is a communist that nobody can belief. Not even, you already know, the folks surrounding her proper now does. I imply these are people which have sturdy ties with Russia, Iran, China, Cuba.
I imply, she is doing what she’s doing as a result of United States is placing sufficient stress for them to know that she has no different possibility. If that – if that stress have been taken away, she would flip round and return to the place loyal – her loyalty is, with these regimes are the enemies of America.
So nobody is naive right here. I feel she’s doing a part of the soiled job of dismantling her personal regime and entourage, however that is a – there is a restrict to it for what you stated earlier than,. You already know, folks need to be taken account on – of. They need to be concerned.
MARGARET BRENNAN: What function would you need in a future Venezuelan authorities? As a result of even President Trump says you could have a task sooner or later. Would you run for president?
MARIA CORINA MACHADO: I might be president when the time comes. But it surely does not matter. That must be determined in elections by the Venezuelan folks.
I wasn’t allowed to run within the final election, as we talked about earlier than, as a result of Maduro was afraid to working in opposition to me. And he thought Edmundo was not a menace, as a result of no one knew who he was. And in lower than three months, we managed to place the entire nation supporting him, as a result of that is – it is a matter of freedom.
I imply, it is a non secular struggle, an existential struggle for Venezuela. Not like different diasporas, and I need to stress this, our folks all over the world, right here in the US, need to return, return and stay in a rustic the place they’re secure, however, most of all, the place there’s a future in freedom and democracy.
So if we wish these tons of of 1000’s and thousands and thousands of Venezuelans to return, we have to have a safe and exact timeline by way of which this transition will advance.
MARGARET BRENNAN: And we do not know when but…
MARIA CORINA MACHADO: Not but.
MARGARET BRENNAN: … from the Trump administration.
(CROSSTALK)
MARIA CORINA MACHADO: Not but.
However I am certain there’s – and the secretary of state and lots of different members of the federal government, by directions of the president, a transparent willingness to maneuver as quick as potential, inside, you already know, management and order and understanding the complexity of such a prison construction, however understanding that the voice of the folks is what brings legitimacy to this course of.
MARGARET BRENNAN: Earlier than I allow you to go, you already know, the final time we spoke, you had made this daring covert escape by land, sea and air from Venezuela to go and obtain that Nobel Peace Prize in Oslo.
You have stored these particulars personal, you stated, for security causes. However you probably did say you broke your again. You talked about being misplaced at sea, that you just feared that you just would possibly lose your life at one level.
In spite of everything of that, why did you give your Nobel Peace Prize to President Trump, after you’d already devoted it to him?
MARIA CORINA MACHADO: Look, I feel it is a matter of justice, and it is a matter of what is within the superior curiosity of our nation.
We, the Venezuelan folks, are really grateful for what he has performed, and we’re assured in what he’ll do within the – within the days, weeks and months to return.
MARGARET BRENNAN: You consider he helps you?
MARIA CORINA MACHADO: I do, as a result of it’s – has – it has to do at first with you, the American folks, and the way dismantling this prison construction not solely saves thousands and thousands of Venezuelan lives. It additionally saves lives within the Americas.
And as soon as Venezuela is free, then the Cuban regime will observe. The Nicaraguan regime will observe, even the Iranian regime that has turned Venezuela into its secure haven and satellite tv for pc solely three hours away from Florida.
I imply, this has large consequence for the Western Hemisphere, for United States. So I feel it is a win-win scenario for funding, for enterprise alternative, for safety causes, and definitely for migration tensions and disaster.
So, Venezuela might be free, and I do know I’ll host you quickly in a beautiful nation that could be very grateful to yours.
MARGARET BRENNAN: Maria Corina Machado, thanks very a lot to your time right now.
We’ll be proper again.
(ANNOUNCEMENTS)
MARGARET BRENNAN: We’re joined now by Texas Republican Congressman Michael McCaul.
Good to have you ever right here.
REPRESENTATIVE MICHAEL MCCAUL (R-Texas): Thanks for having me.
MARGARET BRENNAN: So, we’re on this partial authorities shutdown presently, however Speaker Johnson stated on one other community this morning he expects it might finish by Tuesday.
A few of your Republican colleagues, although, have stated that they’ve situations for getting on board. Republicans have a one-seat majority at this level. Is he – is he overconfident? He has your vote?
REPRESENTATIVE MICHAEL MCCAUL: Nicely, he has my vote.
I imply, we voted for this final time. The Democrats, most of them voted for this. For the Democrats to show round and vote in opposition to it on Tuesday, simply to close down the federal authorities, is unnecessary to me in any respect.
I feel the speaker – the trick is getting it by way of the Guidelines Committee. And I consider that the speaker wouldn’t try this if he did not have the votes.
MARGARET BRENNAN: Nicely, you already know why we’re on this scenario and why these Democrats at the moment are objecting.
REPRESENTATIVE MICHAEL MCCAUL: Proper.
MARGARET BRENNAN: Due to what occurred per week in the past…
REPRESENTATIVE MICHAEL MCCAUL: Proper.
MARGARET BRENNAN: … out in Minneapolis, when Alex Pretti, this ICU nurse, was shot lifeless by Border Patrol.
REPRESENTATIVE MICHAEL MCCAUL: However the DHS portion is taken out of this. The D.H. portion is taken out of that appropriations.
MARGARET BRENNAN: Proper. It is simply now a two-week persevering with decision.
REPRESENTATIVE MICHAEL MCCAUL: To have reforms to DHS.
MARGARET BRENNAN: To have reforms.
REPRESENTATIVE MICHAEL MCCAUL: Sure.
MARGARET BRENNAN: So let’s speak about that, as a result of the Trump administration has modified personnel. They put Tom Homan now out in Minneapolis, the border czar. They took out of that place Greg Bovino, who had been working Border Patrol.
The Justice Division has additionally stated it is opened a civil rights investigation into why federal brokers shot Pretti. Secretary Noem now says the FBI is taking on the probe into what occurred. Are your considerations about what occurred in Minneapolis happy?
REPRESENTATIVE MICHAEL MCCAUL: I’ve known as for a full investigation. DOJ has opened that investigation.
Civil Rights Division would have jurisdiction over this. Look, I imply, Bovino went in there with these roving patrols. He escalated the scenario. He escalated the strain between the general public and legislation enforcement. He put his brokers ready they need to by no means have been put in. They don’t have any coaching for crowd management.
Their job is to go in and take away prison aliens, violent felons from the US, and get them out of right here. And so, you already know, I – Tom Homan is a consummate skilled. He is been doing this for a very long time. I’ve identified him for a very long time. He is going to return to the core mission of ICE. And that is focused legislation enforcement operations, not roving the streets, inflicting chaos.
MARGARET BRENNAN: However we have not heard him say or the administration say that they are truly going to alter techniques to do what you simply stated.
REPRESENTATIVE MICHAEL MCCAUL: Nicely, I consider, in his press convention, he did speak about de-escalation.
MARGARET BRENNAN: Sure.
REPRESENTATIVE MICHAEL MCCAUL: He talked about going again to focused, you already know, legislation enforcement operations.
MARGARET BRENNAN: Does that imply ending warrantless arrests? Is that the way you perceive it?
REPRESENTATIVE MICHAEL MCCAUL: Administrative warrants have been round for a very long time…
MARGARET BRENNAN: Sure.
REPRESENTATIVE MICHAEL MCCAUL: … to – signed by an immigration decide, order of removing, to go in, faucet round prisoners beneath ICE detainers. That can proceed.
The thought of an administrative order being – warrant getting used to interrupt into a house, that has not been the apply of ICE. And I do not suppose Mr. Homan goes to – going to proceed that.
MARGARET BRENNAN: Nicely, we heard truly – you are proper. Warrantless residence entries are unconstitutional. Fourth Modification protects all folks, no matter citizenship, from unreasonable search and seizures.
However – and we have seen the documentation from the Trump administration – their coverage does permit for these so-called collateral arrests, the place ICE officers perform warrantless arrests of unauthorized immigrants who aren’t the targets, however people who who’re encountered throughout an operation, and so they is perhaps making an attempt to go away the scene.
Ought to the premise there be modified? Is that too broad?
REPRESENTATIVE MICHAEL MCCAUL: Look, the goal is a goal. The goal’s the violent offender. You already know, there – there are many these to spend all our time and assets on.
After they do arrest the goal, if there are unlawful aliens with the goal, they’re caught within the web, and since they’re within the nation illegally, they’re eliminated. And I do not suppose that apply will change. However the roving patrols…
MARGARET BRENNAN: Nicely, it did change them, as a result of prior administrations interpreted flight danger as not probably exhibiting up for a courtroom appointment. The Trump administration interpreted it because the man would possibly depart the scene. They usually justified a few of these warrantless arrests and encounters beneath that.
Is that too broad? As a result of that is a part of this roving group that you just’re speaking about, proper?
REPRESENTATIVE MICHAEL MCCAUL: Nicely, appropriate.
And due course of applies to all individuals beneath the Structure. It will apply to them as nicely. In the event that they’re caught within the web, although, they need to be handled. Look, that is moving into entrance of courts proper now. And…
MARGARET BRENNAN: And Democrats need to argue about this. They need adjustments.
REPRESENTATIVE MICHAEL MCCAUL: And – sure. And the courts are throwing out plenty of these circumstances. Really, you’ve gotten – and also you’re having violations with U.S. residents being arrested unlawfully.
So the American folks help the deportation of prison aliens, violent offenders. What they do not help is extreme use of drive. And I consider Bovino crossed the road. I feel the president was appropriate in telling him to get out of there. I might advise…
MARGARET BRENNAN: Ought to he nonetheless have a job?
REPRESENTATIVE MICHAEL MCCAUL: Nicely, he is going again to his prior station.
MARGARET BRENNAN: Proper.
REPRESENTATIVE MICHAEL MCCAUL: However I might advise the secretary and the president to contain Tom Homan. And he ought to have been there from day one…
MARGARET BRENNAN: Why wasn’t he?
REPRESENTATIVE MICHAEL MCCAUL: … and to make the most of his experience and his expertise.
MARGARET BRENNAN: Why was he lower out by Secretary Noem?
REPRESENTATIVE MICHAEL MCCAUL: I do not know all of the internal workings inside DHS on that. I can let you know, although, he’s the consummate skilled in the case of ICE removing operations.
MARGARET BRENNAN: A federal decide in Texas has ordered that this 5-year- previous boy, Liam Ramos, be launched, alongside together with his father, from ICE custody. He had been detained by federal brokers out in Minneapolis. His image went viral.
The decide who ordered the discharge particularly referenced concern about traumatizing youngsters. He isn’t the one child being detained beneath present insurance policies. And with this explicit case, the administration claimed one thing that was not backed up in courtroom, proper?
They claimed the daddy was making an attempt to flee and that he was right here illegally. He was right here beneath a coverage honored by the final administration. They used an app on a cellphone to say asylum. That was a authorized course of. So now they’re out of this detention facility.
However – however does not that increase to you concern that there are kids who’re getting caught within the crosshairs, that there does must be, maybe from Congress, some guardrails right here being placed on Homeland Safety and what they’re doing?
REPRESENTATIVE MICHAEL MCCAUL: I feel that’s a part of the reform course of we’ll be . I feel there are…
MARGARET BRENNAN: However you need to drive it, or do you belief DHS to do it?
REPRESENTATIVE MICHAEL MCCAUL: I – nicely, we will – we will – we will go the legal guidelines.
I feel the issue is, conditions like these give a black eye to truly legislation enforcement officers who’re simply making an attempt to do their jobs. And, look, the mission, I feel, is to get violent felons in a foreign country. Most individuals help that.
(CROSSTALK)
REPRESENTATIVE MICHAEL MCCAUL: It is the president – the primary concern the president received the election on.
What I fear about is popping a profitable concern right into a legal responsibility. I nonetheless consider the American folks need us to take away harmful, violent criminals from the streets, however they do not need to see these photographs of kids and other people being dragged out of their automobiles and U.S. residents.
MARGARET BRENNAN: Sure.
REPRESENTATIVE MICHAEL MCCAUL: These extreme use of forces circumstances have to cease. And I feel Tom Homan will de-escalate the scenario, as I’ve been calling for, for weeks.
MARGARET BRENNAN: Congressman McCaul, thanks to your time right now.
REPRESENTATIVE MICHAEL MCCAUL: Thanks for having me.
MARGARET BRENNAN: We’ll be proper again with much more Face the Nation.
(ANNOUNCEMENTS)
MARGARET BRENNAN: The Justice Division on Friday launched greater than three million extra pages associated to the investigation into convicted intercourse offender Jeffrey Epstein, claiming it has now launched all of the recordsdata required by Congress in a legislation signed by President Trump in November.
However the authors of that legislation, Democrats and one Republican on the Home Judiciary Committee, say the administration has not complied and has solely launched half of the estimated pages, together with 200,000 that have been redacted or withheld, and, on Saturday, submitted a proper inquiry to evaluation the entire recordsdata.
We might be proper again.
(ANNOUNCEMENTS)
MARGARET BRENNAN: We might be proper again with former Trump financial adviser Gary Cohn.
(ANNOUNCEMENTS)
MARGARET BRENNAN: Welcome again to “FACE THE NATION.”
For an replace now on the economic system we’re joined by Gary Cohn, who was the highest financial advisor to President Trump touring his first time period in workplace. He’s now the vice chairman of IBM.
Good to have you ever again right here.
GARY COHN (IBM Vice Chair): Thanks for having me.
MARGARET BRENNAN: So, the president has this editorial in “The Wall Road Journal” arguing all of the financial success that we’re seeing proper now is because of his tariff insurance policies. The legality of that, of a few of these tariffs are being debated proper now earlier than the Supreme Court docket. How factual do you assess his argument to be?
GARY COHN: Nicely, I feel we have to take a step again. The economic system is kind of sturdy proper now on top-line development. So, for those who have a look at GDP, gross home product, which is the general output of the U.S. economic system, we’re trending about 5 p.c proper now, which is a really excessive development charge in the US, a lot increased than the baseline we have had for the final decade.
So, for those who have a look at that quantity alone, and that is a great quantity to have a look at, issues are going nicely. The inflation charge has come right down to the excessive two percents. It is nonetheless increased than we might prefer it. And the unemployment charge is ticking up, nevertheless it’s nonetheless in an affordable place round 4, 4.5 p.c. So, total, the economic system is kind of sturdy proper now.
That stated, we have got an attention-grabbing economic system proper now. We have this large wealth impact on the prime finish and we have got hard-working Individuals who’re having a really tough time paying their payments and so they’re struggling on this economic system. And I feel the White Home has acknowledged that they are struggling. And I feel a part of the explanation the president wrote the op-ed was to attempt to get out in entrance of people who find themselves having a tough time paying their payments and assembly their bills. The White Home is happening the offensive. The president goes to spend day trip on the highway speaking about affordability. Affordability goes to be the problem.
MARGARET BRENNAN: He says it is a hope.
GARY COHN: Nicely, I feel affordability would be the concern between now and the midterm elections.
MARGARET BRENNAN: Proper. And we all know the chief of employees has stated she desires the president on the market speaking concerning the economic system.
However you simply talked about what customers are feeling. The White Home says folks will simply really feel higher after tax time.
GARY COHN: Sure.
MARGARET BRENNAN: You wrote that authentic tax legislation that was then simply renewed and prolonged by Congress.
GARY COHN: Sure.
MARGARET BRENNAN: However you might be seeing firms like Amazon announce it is chopping 16,000 company jobs, Mastercard chopping 4 p.c of its 35,000-person workforce, UPS, 30,000 jobs gone, Dow, 4,500, Residence Depot, 800. If all the things’s trending in a optimistic course, what’s going on there?
GARY COHN: So, we did see over 60,000 extra layoffs come out of firms final week through the earnings season. It is usually when firms speak about managing bills. Corporations right now have two basic items happening. Primary, firms hoarded labor throughout and after Covid. After we are – after we have been working from residence and other people have been distant, productiveness went down and firms have been nervous about getting the workloads performed. So, most firms ended up hiring extra folks or not letting anybody go. So, workforces ballooned.
And I feel we’re now within the a part of the cycle the place company America could be very snug about changing folks, they’re very snug about hiring folks. So, they’re downsizing their head rely from hoarding to kind of a extra naturalized stage. And I feel plenty of these numbers that we noticed this week being introduced have been firms right-sizing themselves.
Along with that, we now have seen enter prices for firms go up fairly dramatically. Whether or not it’s labor prices, commodity prices or tariffs. As we agree, somebody has to pay the tariffs. So, as firms try to stability their equation –
MARGARET BRENNAN: The president says there isn’t any price to it that is going to harm an organization. They will –
GARY COHN: However we – he additionally says that there is $200 billion plus sitting in an account of cash they’ve collected. So, the cash is being paid by somebody. So, the companies are paying the cash. They’re making an attempt to determine how one can cope with enter prices going up, tariffs going off, price of labor going up and probably not being able to lift costs to the buyer as a result of we have seen how powerful it’s for lots of Individuals to afford issues right now.
So, firms are strolling that superb line between absorbing enter price and never having the ability to increase costs.
MARGARET BRENNAN: Sure.
So, the White Home, as I stated, they’re conscious they’ve an issue, even when they do not need to explicitly say they’ve an issue politically due to that decrease finish shopper. However if you look, one of many concepts being floated by the president is a one-year cap on bank card charges at 10 p.c and one way or the other getting Congress to compel that. He signed an govt order to restrict institutional buyers to purchasing single-family properties. After which he is floated this concept of $2,000 checks, which can or could not require Congress.
GARY COHN: Sure.
MARGARET BRENNAN: What do you concentrate on the buyer centered elements of the plan? Are they viable?
GARY COHN: Nicely, look, I feel it is admirable that they are understanding that persons are cash-strapped right now. They’re caught with not sufficient disposable revenue. So, I feel the White Home is throwing out concepts that may put extra disposable revenue again in customers’ fingers.
Sadly –
MARGARET BRENNAN: These aren’t concepts you’d have endorsed if you have been in that advisor function?
GARY COHN: Sadly, these concepts most likely do not remedy the issue. In reality, the bank card charges most likely have the other impact. So, bank card firms cost folks a danger adjusted charge to lend them cash. Clearly, worse credit score, people who have the best chance of defaulting, pay the best charges. If you happen to put a cap on charges that may be charged, what do – what do firms do? They really cease lending to the riskiest a part of the inhabitants. And so there customers will lose buying energy, not achieve buying energy.
You already know, on the housing facet, you already know, the one factor I might – I remind folks is the institutional accumulation of housing occurred after the ’08 monetary disaster after we had an enormous glut of homes in the US, costs have been plummet, so the monetary market stepped in and so they put a help beneath the housing market.
MARGARET BRENNAN: Proper.
GARY COHN: And we will not neglect how vital these monetary gamers are in occasions of stress.
MARGARET BRENNAN: Nicely, we must also say, you labored for Goldman Sachs and have been president there for a really very long time, together with throughout that monetary disaster. However let’s not relitigate a few of that, however speak about somebody you bought to know throughout that point, and that was Kevin Warsh.
GARY COHN: Sure.
MARGARET BRENNAN: Who was a Fed governor and is now President Trump’s choose to be the subsequent chairman of the Federal Reserve. He is known as for all types of reforms of the Fed.
What do you count on from him in workplace?
GARY COHN: So, look, I feel we’re very lucky to have Kevin as – to be the nominee. Kevin has a novel background coming in because the chair. As you stated, he was a member of the Fed board earlier than. He was there through the 2008 monetary disaster. He was instrumental in that disaster.
What I imply by that’s, when banks have been going by way of stress, and we noticed plenty of financial institution mergers, we noticed plenty of belongings being moved across the system, Kevin was the purpose particular person on the Fed. He was concerned in each a type of discussions. And I actually consider, with out Kevin’s experience and with out Kevin being there, we might not have come out of the 2008 disaster in addition to we now have. So, he is very extremely certified.
He’ll take the Fed again to its conventional kind of norms. You already know, I feel Kevin’s going to remain out of plenty of the non-financial points. He’ll be concerned, clearly, in setting rate of interest coverage. There’s a stress proper now for rates of interest to go decrease. I feel that he’ll most likely observe by way of on the one to 2 cuts this 12 months.
Kevin additionally has a view that the Fed shouldn’t have the massive stability sheet. You already know, the Fed went in and acquired an unlimited quantity of securities.
MARGARET BRENNAN: Quantitative easing and –
GARY COHN: I feel – I feel that Kevin will reverse that. I feel he might be in search of the Fed to promote down their stability sheet. And on the regulatory entrance, I feel Kevin is a – is a traditionalist, believing that we want sturdy regulation in the US, nevertheless it needs to be regulation that works and permits the market to develop, and permits the buyer to have entry to capital.
So, I feel he’s truly the fully proper selection in this time period. And on Friday, when his nomination got here out, the market spoke.
MARGARET BRENNAN: Sure.
GARY COHN: And I feel you need to have a look at what the markets let you know as a result of they’re actual time suggestions indicators.
MARGARET BRENNAN: Proper.
GARY COHN: So, we noticed the greenback strengthen by about one p.c. We noticed silver drop by 25 p.c. We noticed gold drop by 10 p.c. I may –
MARGARET BRENNAN: The president additionally spoke final evening at a dinner and stated he’ll sue Warsh if he does not decrease rates of interest. You are taking that as a joke?
GARY COHN: Sure, I take it as a joke. You already know, look, I feel the president fully understands the independence of the Fed. Kevin has been a staunch advocate for independence of the Fed.
MARGARET BRENNAN: Nicely, he is obtained a affirmation course of to undergo. And we’ll see if Thom Tillis’ request for the Division of Justice’s probe into the present Fed chair stands in the way in which of really getting him by way of. However we’ll observe that.
Gary Cohn, at all times good to have you ever right here
GARY COHN: Thanks for having me.
MARGARET BRENNAN: We’ll be proper again.
(ANNOUNCEMENTS)
MARGARET BRENNAN: We spoke with a bipartisan group of mayors about how native governments can discover frequent floor on fixing a number of the prime issues going through Individuals right now, significantly affordability considerations like housing prices and vitality costs. However for all 4 mayors, Democrats Eileen Higgins of Miami, Quinton Lucas of Kansas Metropolis, plus Republicans David Holt of Oklahoma Metropolis and Mark Freeman of Mesa, Arizona, it was clear that immigration has been close to prime of thoughts following the lethal shootings of protesters in Minneapolis and the tensions between federal and native governments nationwide.
This is a part of our dialog.
(BEGIN VT)
MARGARET BRENNAN: Mayor Freeman, we checked, 4 p.c of the inhabitants in Arizona is undocumented in line with Pew. As I perceive it, you’ve got restricted cooperation with ICE and also you hand folks over to federal authorities if they’ve an immigration infraction however your native authorities picked them up for one thing else, proper? That is what, in impact, that coverage means. Why does that be just right for you when it does not work in locations like Minneapolis and you’ve got this excessive diploma of rigidity and this standoff?
MARK FREEMAN (R, Mayor of Mesa, Arizona): Nicely, I – personally, I feel – that is a fantastic query, however I feel there’s some misinterpretation of it as a result of, in Mesa, we now have an settlement with ICE, however, nevertheless, it is solely on infractions which may be a civil infraction. And so, we do not have a jail in Mesa, Arizona. So, we go to a holding facility. And we have been working with ICE for – since 2009 with an settlement that we discovered very profitable with.
However extra importantly, what we’re doing in Mesa, I’ve taken – I’ve elevated it to the subsequent stage. We have now Dia de los Muertos, the Day of the Lifeless, that we now have with our Hispanic Latino neighborhood. We have now El Grito, who’s the liberation of Spain from Mexico. So, we now have these nice experiences in Mesa, Arizona, in our downtown space, in cooperation with our Latino Hispanic space. And I meet with our pastors as nicely to ensure that all the things goes nicely on their finish.
MARGARET BRENNAN: And you do not really feel the strain on the native stage proper now? Like, the controversy we’re having as a rustic –
MARK FREEMAN: No, I do not really feel –
MARGARET BRENNAN: Are folks speaking about it?
MARK FREEMAN: Sure, they speak about it in our neighborhood, however I’m assembly with the people who find themselves truly affected by it, and so they discover consolation in figuring out that our metropolis stands able to help them.
MARGARET BRENNAN: Mayor Holt, I need to ask you about your metropolis, but additionally on this management function you’ve gotten, like, how are you counseling mayors to undergo this proper now? This can be a actual stress on the federal stage to typically change native legal guidelines or state legal guidelines.
DAVID HOLT (R, Mayor of Oklahoma Metropolis): Nicely, I do not know. Just a few – a number of observations in response to that. I imply, first, it is actually vital to level out that we now have enforced immigration legal guidelines on this nation for over a century. ICE has been round for 20 years. There was even a earlier Trump administration that – and in none of these occasions did you see this stage of chaos in our cities. I perceive within the earlier Trump administration there was controversy about issues on the border. However I am speaking about all of the – you already know, 1,000 miles from the border –
MARGARET BRENNAN: Inside enforcement, sure.
DAVID HOLT: In locations like Minneapolis. So, it is – we will look again to earlier eras of normality and respect that there are methods to competently implement immigration legal guidelines on this nation. And I feel that is what we’re sort of asking for is that kind of pivot again to a brand new technique, which may be an previous technique. And I feel all of us settle for that this administration prioritizes the next stage of enforcement. However what we’re seeing within the conflicts within the streets of Minneapolis is simply, clearly, unacceptable. And we’re nonetheless kind of reeling from what occurred final Saturday.
And, you already know, we’re typically inspired that the administration appears to be exploring that pivot, you already know. And, in fact, we perceive it takes time to kind of get the precise personnel in place and make the insurance policies. So, I imply, we’re giving them that area.
However what was occurring in Minneapolis that sort of culminated within the second dying of a protester final Saturday is, clearly, one thing that we might all concern to occur in our cities.
MARGARET BRENNAN: Sure.
DAVID HOLT: And we concern that that sort of chaos was beginning to probably creep across the nation.
I feel the opposite factor I need to observe, although, is that mayors are actually caught in a bit little bit of an inconceivable scenario as a result of, you already know, we take these roles with our chief obligation being the safety of our residents. And we’re even given a police division, folks with weapons, to help us in that pursuit.
MARGARET BRENNAN: Sure.
DAVID HOLT: However there’s a factor known as the Supremacy Clause of the US Structure. And when the federal authorities and federal legislation enforcement comes into your metropolis, we’re absolutely subservient to that within the eyes of the legislation. And we additionally consider within the rule of legislation. So, we get caught sort of in the course of these tensions and we want a federal authorities who will use discretion and restraint with that energy. And that has largely labored for the final 250 years.
So, I feel we simply have to remind all people that that is potential and I feel you see mayors perhaps messaging a few of that to our residents, a few of it to Congress, a few of it to the administration, simply looking for a contented medium for everyone the place we will co-exist with all of those inherent tensions that, in fact, have at all times existed.
MARGARET BRENNAN: Sure.
DAVID HOLT: And we now have largely been in a position to handle.
MARGARET BRENNAN: Nicely, however that is why I feel it is so attention-grabbing to speak to you all as mayors since you truly need to cope with these folks day after day and safe their security, as you stated, but additionally, you already know, stay compliant.
In Oklahoma, it appears just like the freeway patrol works with ICE to conduct stings. So, you do have some working collectively of state and federal.
DAVID HOLT: Sure. I imply it is a state company, the Oklahoma Freeway Patrol.
MARGARET BRENNAN: That is proper.
DAVID HOLT: That isn’t our police division.
MARGARET BRENNAN: Proper. However if you see that working collectively, is it clean? Are there tensions now due to what simply occurred up to now few weeks? Like, are folks questioning whether or not these insurance policies ought to keep?
DAVID HOLT: Nicely, I imply, let me differentiate it and make it clearer.
MARGARET BRENNAN: Do folks have a look at Minneapolis and say, that might occur right here, is what I am asking although?
DAVID HOLT: Nicely, in fact. I am certain each mayor in America, right here in D.C., was feeling that method. And once more, not as a result of – not as a result of any of us suppose that there should not be immigration enforcement.
MARGARET BRENNAN: Proper.
DAVID HOLT: I imply this isn’t the query. It is simply, how is it managed?
I imply we now have some mayor colleagues that have been former police chiefs, for instance. Have actually nice experience in legislation enforcement. We’re all amateurs, proper, however these are individuals who did this for a dwelling. They usually’re telling us, they have a look at these movies and so they see police techniques that have not been utilized anyplace in 30 years in a neighborhood legislation enforcement company. That these are – these aren’t the leading edge methods of legislation enforcement that we now have been utilizing, our police departments have been utilizing for the final quarter century to construct belief with our communities.
MARGARET BRENNAN: Proper.
DAVID HOLT: And so, that is what’s – it is not the – we’re probably not arguing about whether or not this nation ought to implement immigration.
MARGARET BRENNAN: Proper.
DAVID HOLT: All people believes that. I imply not all people, however the broad swath of the American public does. However what we’re arguing about is police techniques and methods and managing engagement with residents on the road. You already know, we now have constructed a lot belief in these previous couple of years and labored actually exhausting at that. And, clearly, this entire scenario has threatened to erode that belief.
MARGARET BRENNAN: Sure.
Mayor Lucas, I need to come to you on this concept of how the federal authorities is making an attempt to implement immigration in your metropolis. As a result of we checked, and I consider you’ve gotten the same expertise out in Oklahoma too, the place the federal authorities’s trying to flip industrial warehouses into large-scale detention services for as much as 10,000 folks. That has brought about some friction in Kansas Metropolis. You might have tried to alter issues. You handed a metropolis ordinance to fight it.
Are you able to truly cease the federal authorities from doing it?
QUINTON LUCAS (D, Mayor of Kansas Metropolis, Missouri): You already know, I feel there’s substantial query to it. The folks of Kansas Metropolis have requested us to verify, although, that we get up for, on this scenario, easy zoning. That we ensure that we share what’s the viewpoint of the folks of Kansas Metropolis. There completely is a supremacy clause. There’s additionally a Tenth Modification. And so, in our view, that’s – which is reserved to the states, which incorporates native zoning, native police powers, significantly the place personal contractors are within the transaction with the town we now have the chance to have interaction.
There’s been an extended struggle close to us in Leavenworth, Kansas, you already know, for a jail in a army base the place they’ve additionally managed to reject the position of a federal facility working by way of a non-public enterprise.
So, we wished to clarify not that individuals largely did not desire a 10,000- particular person detention facility close to them, but additionally that they need to undergo issues like zoning, a particular use allow. It sounds indirectly boring. It’s core to what authorities is.
However I feel taking us from maybe the political concern, there’s the easy one, which is, in all of our communities, we need to be certain persons are handled humanely. Changing a huge distribution facility subsequent to railroad tracks and all of that right into a warehouse for 10,000 folks for which it was by no means designed will not be proper. And it’s basically one thing that’s inhumane and inhospitable, not less than to the senses that we now have in Kansas Metropolis, and I might undergo you most American cities.
So, whether or not it’s changing large distribution services into mass detention warehouses, whether or not it is Alligator Alcatraz in Florida, or something beneath the solar, I feel you might be seeing communities say, we need to ensure that if there might be detention, if there might be enforcement, it’s per constitutional ideas long run.
MARGARET BRENNAN: Are you able to cease it? Have you learnt but?
QUINTON LUCAS: You already know, I feel that most likely that will be a federal district courtroom dedication.
MARGARET BRENNAN: Sure.
QUINTON LUCAS: I’ve seen – there have been many zoning battles through the years about what will be performed. I feel the truth that you primarily have personal enterprises that want to construct these, then lease to the federal government, creates some stage of a query.
MARGARET BRENNAN: And earlier than we depart the subject of immigration, Mayor Higgins, practically seven p.c of Florida is undocumented in line with Pew. In Miami, the police cooperate with ICE. However you, throughout your marketing campaign, have been very essential of that call to cooperate. Can you alter the coverage with out the governor being onboard?
EILEEN HIGGINS (D, Mayor of Miami): We have been – the governor issued a requirement that native municipalities cooperate with ICE. And plenty of municipalities, together with the town of Miami, earlier than I grew to become mayor, signed that settlement. It is extremely tough to unwind. It will take a vote of our metropolis fee to take action.
So, clearly, as mayor, I intend to adjust to the legislation. And so what we now have performed in our 1,500 particular person police division is we now have skilled three people ought to ICE name which can be in a position to reply that decision and work with them. Clearly, we will adjust to the legislation, however we’re not going to assist past that as a result of in my neighborhood in south Florida, we’re essentially the most affected.
ICE and its techniques have been in my neighborhood for over a 12 months. They’ve been inflicting nice concern and terror in our residents. I can’t go anyplace with out assembly somebody, my brother, my uncle, my sister, Alligator Alcatraz, (SPEAKING IN FOREIGN LANGUAGE), we do not know the place they’ve been taken. And that has been happening for months. It’s inhumane. It’s merciless. I am a Catholic. It is – I can barely grapple with the shortage of humanity round all this.
After which what we now have, very in another way from another neighborhood, in Miami- Dade County, we – which we’re part of, roughly 15 p.c of our inhabitants has TPS. So, you are speaking –
MARGARET BRENNAN: Momentary protected standing.
EILEEN HIGGINS: Momentary protected standing. We’re speaking about between 250,000 and 300,000 people that will – which have slowly by however absolutely – as they’ve misplaced standing, they’re going to come in a single day, illegals within the eyes of the federal authorities, and this enforcement in our Nicaraguan neighborhood, our (INAUDIBLE) neighborhood, our Venezuelan neighborhood, has pushed many individuals into hiding, youngsters aren’t going to highschool, and, clearly, ICE is deporting them.
Tuesday evening we face a really, very dire scenario. Our Haitian neighborhood loses its entry to TPS at midnight. Twenty p.c of TPS recipients with Haitian heritage work in well being care. So, on Wednesday, we’re speaking about nursing properties, residence well being care aides, hospitals, nurses, doctor aides, all of them are going to be out of a job once they get up on Wednesday morning.
MARGARET BRENNAN: As a result of their authorized pathway and standing goes to be revoked.
EILEEN HIGGINS: Sure.
MARGARET BRENNAN: And abruptly they change into unlawful.
EILEEN HIGGINS: Unnecessarily. Haiti will not be secure. Venezuela will not be secure. TPS must be prolonged instantly for Venezuelans. It was erased with a stroke of a pen. It may be put in place with the stroke of a pen. And TPS for Haitian immigrants ought to completely positively be prolonged. Our economic system is at stake and our humanity is at stake.
(END VT)
MARGARET BRENNAN: As Mayor Higgins talked about, authorized protections for Haitians on the short-term protected standing program finish this Tuesday, however there are a number of lawsuits by advocacy teams to attempt to cease it from expiring. A federal decide in Washington, D.C., is anticipated to weigh in on a type of circumstances within the coming days. We’ll hold watching.
You’ll find the total dialog with the mayors on our YouTube web page and on our web site, facethenation.com.
We’ll be proper again.
(ANNOUNCEMENTS)
MARGARET BRENNAN: That is it for us right now. Thanks all for watching. Till subsequent week. For “FACE THE NATION,” I am Margaret Brennan.
(ANNOUNCEMENTS)
