On this “Face the Nation with Margaret Brennan” broadcast, moderated by Margaret Brennan:
- Sen. Mark Kelly, Democrat of Arizona
- Sen. Katie Britt, Republican of Alabama
- European Central Financial institution President Christine Lagarde
- Professors JerI Seidman of the College of Virginia, Leila Hudson of the College of Arizona, and Miki Turner of the College of Southern California
Click on right here to browse full transcripts from 2025 of “Face the Nation with Margaret Brennan.”
MARGARET BRENNAN: I am Margaret Brennan in Washington.
And this week on Face the Nation: Tensions construct within the Caribbean. Plus, is there an finish in sight to the federal government shutdown?
As he pushes for peace in Ukraine and the Center East, President Trump is leaning in the wrong way on Venezuela, with U.S. forces killing 29 individuals accused of drug trafficking in six strikes on vessels since September, and the president providing a stark warning to Venezuelan chief Nicolas Maduro.
(Start VT)
DONALD TRUMP (President of the US): He is supplied all the things. You are proper. You recognize why? As a result of he does not wish to (EXPLETIVE DELETED) round with the US.
(Finish VT)
MARGARET BRENNAN: In the meantime, large crowds of protesters took to the streets in dozens of cities, rallying in opposition to Trump’s insurance policies, as the federal government shutdown drags on for a 3rd week.
We’ll get the most recent from Democratic Senator Mark Kelly, plus Republican Senator Katie Britt, who helped the president unveil a brand new plan to develop entry to fertility therapies.
Then: As Trump’s tariffs proceed evolving, we’ll get an replace on the worldwide economic system from the president of the European Central Financial institution, Christine Lagarde.
Lastly, a dialog with three school professors on how the Trump administration’s calls for to align colleges with its priorities may change their jobs, their establishments, and their college students.
It is all simply forward on Face the Nation.
Good morning, and welcome to Face the Nation. Now we have rather a lot to get to at present.
And we start with Arizona Democratic Senator Mark Kelly, who’s right here in studio with us.
Good morning to you, Senator.
SENATOR MARK KELLY (D-Arizona): Good morning.
MARGARET BRENNAN: Lots to get to. I wish to begin on what you might be seeing as a member of Senate Armed Providers and the Intelligence Committee.
There are about 10,000 U.S. forces now which can be constructed up within the Caribbean space both on ships or in Puerto Rico. Three B-2 – B-52 bombers flew close to Venezuela final week. There have now been six maritime strikes by U.S. Particular Operations forces.
What is that this including as much as? Is the Trump administration planning regime change in Venezuela?
SENATOR MARK KELLY: Properly, I hope not. Regime change has never actually labored out properly for us as a nation the place we now have supported that, whether or not it was in Vietnam, Cuba, Iraq, Afghanistan. It does not go the best way we predict, and it places an incredible variety of People in hurt’s manner, the U.S. army, the blokes flying these missions now in B-52s near the coast.
These of us are in danger, members of the US Navy now on this operation, which is clearly, historically a regulation enforcement operation, now escalating to one thing possibly, because the president talks about, regime change. I believe that is the flawed transfer for this president. The Coast Guard has the sources to do that.
MARGARET BRENNAN: To interdict drug traffickers.
SENATOR MARK KELLY: To interdict medicine. That is the best way this has historically been completed, and I do fear concerning the authorized authorities or lack thereof that the US army has to conduct these sort of strikes.
MARGARET BRENNAN: And you’ve got been briefed on what authorized authorities are being invoked. Do you suppose they’re inadequate at this level?
SENATOR MARK KELLY: They – they’d a really laborious time explaining to us the rationale, the authorized rationale, for doing this and the constitutionality of doing it, when you think about what – the regulation of warfare, particularly at sea.
It was a really convoluted argument. It additionally included, by the best way, a secret listing of over 20 narco organizations, drug trafficking cartels. However they would not share with us the listing. So the transient we acquired was – had an incredible variety of holes in it, and so they needed to go round and round to provide us the authorized rationale for doing this.
And what I fear about, Margaret, are all these younger army personnel that may discover out months from now that what they did was unlawful. And you then get to, what are we attempting to perform right here? We wish to preserve fentanyl out of the US.
MARGARET BRENNAN: Proper.
SENATOR MARK KELLY: And I do not understand how extensively recognized that is, however these routes by means of the Caribbean on boats are predominantly used to carry cocaine to Europe.
MARGARET BRENNAN: To Europe, to not U.S. shores.
SENATOR MARK KELLY: Sure. That is proper. Fentanyl tends to come back from a unique manner. And we do wish to preserve fentanyl out of the US.
MARGARET BRENNAN: However so far you simply stated, the legality of what is being completed, CBS reporting signifies that the commander who was working Southern Command, Admiral Alvin Holsey, was pressured to go away his command put up early only a 12 months right into a four-year put up and that there have been tensions with Secretary Hegseth that have been main as much as that departure, which Hegseth characterised as only a retirement.
SENATOR MARK KELLY: Proper.
MARGARET BRENNAN: You communicate to the highest officers. Can they, with confidence, refuse illegal orders with out worry of retribution and even shedding their pensions?
SENATOR MARK KELLY: Properly, I do not learn about shedding their pension, however they need to.
That is extra vital than any single individual. That is about our democracy at this level. And people admirals and generals, they should communicate reality to energy. I’ve had conversations with probably the most senior members of our army about this particular factor. They can’t be breaking the regulation.
Would not matter if the president or the secretary of protection tells them to do one thing. If it is in opposition to the regulation, they must say no. They don’t seem to be required to comply with an illegal order. So we count on that from them. I do not know the precise circumstances, why the admiral give up. He hasn’t stated publicly but. I count on, in time, we’ll discover out extra.
MARGARET BRENNAN: However you suppose he did give up? It wasn’t only a retirement out of the blue?
SENATOR MARK KELLY: I do not know. He – they might have compelled him out. He may have give up. He may have stated, hey, you are not accepting my recommendation. You want anyone else in right here.
I do not know. I hate to invest about it. He had a protracted service within the U.S. army…
MARGARET BRENNAN: Thirty-seven years.
SENATOR MARK KELLY: … extremely adorned and an incredible chief. I admire his service to this nation.
All of us…
MARGARET BRENNAN: Sure.
SENATOR MARK KELLY: … all U.S. residents can be higher served if this administration listened to the recommendation of these army leaders, particularly the secretary of protection, who thinks he’s actually good at this. He ought to have by no means had this job. He was unqualified for the job.
MARGARET BRENNAN: Properly…
SENATOR MARK KELLY: And, in my opinion, the president ought to have fired him a number of instances.
MARGARET BRENNAN: On Ukraine, you have got been an outspoken supporter of it. Among the pilots practice in your state.
After President Zelenskyy met with President Trump on Friday, he stated they kind of agreed to disagree on whether or not to get these long-range missiles, these Tomahawks that might permit them to fireside into Russia. The place does that stand? President Biden would not do that both.
SENATOR MARK KELLY: Sure.
So I spoke to Zelenskyy three weeks in the past in New York proper after his assembly with Donald Trump.
MARGARET BRENNAN: Sure.
SENATOR MARK KELLY: And we talked about Tomahawks in that assembly, for much longer vary, over 1,000 miles, 700-kil – 700-pound warhead. They’re actually good.
MARGARET BRENNAN: Recreation-changing?
SENATOR MARK KELLY: Recreation-changing.
The president stated he would think about giving them these…
MARGARET BRENNAN: Sure.
SENATOR MARK KELLY: This weapon system, after which he had a dialog with Vladimir Putin.
And I believe it is vital for individuals to acknowledge Vladimir Putin is a former KGB officer. He’s a grasp manipulator. The president has one view. Then he talks to Vladimir Putin, and he alters his story on this. In fact Putin doesn’t need Ukraine to get…
MARGARET BRENNAN: Sure.
SENATOR MARK KELLY: … a longer-range missile that might go after targets deep into Russia, past Moscow and St. Petersburg, by the best way. It will probably vary targets a lot additional. It is very correct. It is a very survivable weapon.
And Putin has a dialog with him and people weapons at the moment are off the desk. Hey, I believe Ukraine can deal with – if we can provide them sufficient rounds, if we now have them in our stock and sufficient launchers…
MARGARET BRENNAN: Sure.
SENATOR MARK KELLY: Floor launchers are slightly new to the system, one thing we removed for a protracted time period.
They’ve demonstrated their skill to function a complicated weapon system just like the F-16. They might deal with this, and it might assist.
MARGARET BRENNAN: Zelenskyy says they’ll proceed to attempt to persuade President Trump.
I’ve to ask you concerning the shutdown. The Republican chief, John Thune, has supplied to take a seat down with Democrats to debate Obamacare, however on the situation that Democrats finish the shutdown. He posted this on social media.
Are you able to financial institution this as a win and agree to start out negotiations?
SENATOR MARK KELLY: That is what we wish. We wish negotiations on easy methods to repair…
MARGARET BRENNAN: Is that this sufficient?
SENATOR MARK KELLY: … easy methods to – I did not have a look at his tweet, however what we want is to repair this skyrocketing premium.
They are going to go up on November 1 for individuals. They can not afford it. Folks in my state…
MARGARET BRENNAN: Both manner, they are going up .
SENATOR MARK KELLY: I’ve talked to so many individuals.
This lady Emily (sp?), whose husband’s a pastor, who has three children, says, with out the Reasonably priced Care Act, she can not have insurance coverage for her kids. They do not get it by means of his work. So what we have to do is repair this well being care premium subject and open the federal government.
MARGARET BRENNAN: However do not that you must try this earlier than November 1, when premiums go up?
SENATOR MARK KELLY: Sure.
MARGARET BRENNAN: Are you going to finish the shutdown earlier than November 1?
SENATOR MARK KELLY: I want to. I want to – we should always – we may – we should always be capable to wrap this up this week if they’ll sit down and have a negotiation with us.
The president has spent one hour negotiating this subject with management in Congress.
MARGARET BRENNAN: Sure.
SENATOR MARK KELLY: That is it, one hour. They should get within the room and keep within the room till we will hash this out.
MARGARET BRENNAN: Sure.
SENATOR MARK KELLY: The president has stated he needs to repair this premium factor and he needs the federal government open. That is what we wish.
MARGARET BRENNAN: Properly, we’ll see if there’s progress this week. Senator, thanks in your time.
SENATOR MARK KELLY: Thanks.
MARGARET BRENNAN: We flip now to Republican Senator Katie Britt, who joins us from Tuscaloosa, Alabama.
Welcome to Face the Nation, Senator.
SENATOR KATIE BRITT (R-Alabama): Thanks a lot for having me, Margaret. I admire it. Look ahead to being on right here.
MARGARET BRENNAN: I wish to speak about quite a lot of issues, however let me simply decide up the place Senator Kelly left off on the shutdown.
He stated, hey, you possibly can all hash this out this week. Chief Thune made that provide. I do know you have got stated you are also involved insurance coverage premiums are going to go up, whether or not Congress extends the tax credit associated to Obamacare that Democrats are campaigning for or not right here, mainly.
Would you like this prolonged?
SENATOR KATIE BRITT: First off, Margaret, we have to reopen the federal government. Democrats want to come back to the desk and do the proper factor.
Simply as I’ve been touring the state this weekend, I’ve heard numerous tales of people who find themselves not getting a paycheck, whether or not it is our women and men in uniform or those that serve alongside them, or whether or not we’re speaking to veterans or we’re speaking to simply a lot of individuals, once we’re wanting what’s occurring with WIC.
There are lots of people which can be being affected by the Democrats taking part in politics, and they should truly do what’s proper, and that’s work for the American individuals. And so getting the federal government open is primary. So we have to vote on this C.R. and open the federal government again up.
Now we have additionally given options like finish authorities shutdown. And I believe you will note this week, if the Democrats do not come to the desk, saying, look, a Shutdown Equity Act, ensuring that the people who find themselves working are literally getting paychecks, as a result of, Margaret, these have actual penalties for American individuals.
And once we’re speaking concerning the ACA, look, Chief Thune stated it greatest. Now we have all the time stated we could have a dialog about this. We imagine that you may stroll and chew gum on the identical time. Democrats, for some purpose, do not suppose that that is attainable.
They should come to the desk, open the federal government again up, after which we’re pleased to have a dialog concerning the damaged system that they created and assist them get out of their very own mess.
MARGARET BRENNAN: However you do personally suppose the federal authorities needs to be offsetting a few of these prices? As a result of we regarded on the numbers, and I believe it is like 130,000 Alabamans are vulnerable to shedding insurance coverage if the tax credit score goes away.
SENATOR KATIE BRITT: Margaret, let’s be sincere about this. Let’s return to Obamacare, 2010.
That is the Reasonably priced Air – Reasonably priced Care Act that even “The Washington Publish” has stated was by no means actually reasonably priced.
MARGARET BRENNAN: Proper.
SENATOR KATIE BRITT: You go to 2014, and what you see there although was will increase made by the Democrats.
After which these will increase that we’re speaking about proper now, insurance coverage corporations have stated solely account for about 4 p.c of what they’re speaking about growing in 2026. The underlying subject is the brokenness of Obamacare. That’s the downside.
And so, when you consider this, you’ve got the 2021 premiums that they’ve given to everybody. Do you perceive Democrats are literally asking for us to proceed premiums which can be going to millionaires in some instances? Now we have acquired to be extra – extra accountable with taxpayer {dollars}.
And if you need these well being care programs to even be capable to work, then we now have to have a bigger dialog.
MARGARET BRENNAN: Certain.
SENATOR KATIE BRITT: However that is completely, completely ridiculous to take a seat right here and say we’re afraid individuals can not afford their well being care, however on the identical time we’ll deny them their paycheck.
These two issues don’t match up. And Democrats want to really be sincere about it and get the federal government again open. And we’re pleased to have conversations, as we now have all the time stated, simply as Chief Thune reiterated this week.
MARGARET BRENNAN: You have been within the Oval Workplace discussing one other well being care matter with President Trump this previous week.
He credited you with saying – properly, mainly explaining to him that February 2024 determination by an Alabama courtroom that dominated frozen embryos are kids. He referred to as it a foul determination, and all of us in all probability bear in mind what it did for these households attempting to undergo fertilization therapy at the moment.
With the adjustments that have been introduced, who’s going to have the ability to afford this now?
SENATOR KATIE BRITT: Look, tens of millions extra persons are going to have the ability to afford this due to President Trump’s management.
From the very first time I talked to him about this, Margaret, he has been steadfast and unwavering, understanding that there are individuals from coast to coast which have been praying to have the ability to begin their household or develop their household.
And due to infertility, right here in the US, we now have seen one in eight households which can be truly fighting infertility points. Now we have acquired about 9 p.c of males, 11 p.c of girls who’re dealing with these challenges.
President Trump believes in being clearly the president that’s serving to hardworking People, serving to mother and father, serving to households. He is turned the Republican Occasion into that, which is so thrilling. And we wish to make it possible for they are going to have the ability to try this at a larger scale.
And in order that’s precisely what this can do. Thousands and thousands extra could have entry. And, moreover, we’ll drive the prices down.
MARGARET BRENNAN: Sure.
SENATOR KATIE BRITT: And so I talked this weekend truly with a good friend of mine who got here as much as me and stated, “I can not inform you how a lot I admire this,” as a result of the affordability subject was the obstacle.
And he or she truly needed to go off – off – off – over shores…
MARGARET BRENNAN: Sure.
SENATOR KATIE BRITT: … abroad to attempt to have the ability to carry life into this world. So it is thrilling for individuals like her.
MARGARET BRENNAN: Sure.
SENATOR KATIE BRITT: And I’ve had grandparents and fogeys and mothers and dads inform me what a sport changer that is for them as they begin and develop their household.
MARGARET BRENNAN: Properly, one cycle of IVF can value between $15,000 to $20,000, and lower-income girls clearly have a problem with that.
However, through the marketing campaign, President Trump stated he was going to make the federal government pay for it or make insurance coverage corporations pay for it. So do you suppose that the Reasonably priced Care Act, that Obamacare, for instance, ought to cowl it, or is it too controversial for conservatives, who’ve an ethical subject with IVF?
SENATOR KATIE BRITT: Properly, Margaret, first, I imply, the Reasonably priced Care Act is damaged. And that’s what we’re seeing proper now. I imply, you have got seen the will increase that folks will see in 2026, 80 p.c of these are simply Obamacare, Reasonably priced Care Act-related.
And so we clearly see that the underlying construction of this program will not be sustainable and isn’t working for the American individuals. Nobody is paying much less now that Obamacare is in place.
MARGARET BRENNAN: Sure.
SENATOR KATIE BRITT: And so we now have acquired to be tremendous sincere about that.
We additionally must make it possible for we’re being accountable shifting ahead. What President Trump has completed is made this accessible to tens of millions extra individuals. He will proceed main on this subject and so many others…
MARGARET BRENNAN: It is nonetheless not free. It is nonetheless not free, proper?
SENATOR KATIE BRITT: … and really help hardworking households.
MARGARET BRENNAN: So, do you wish to legislate, although, to pressure it to be?
SENATOR KATIE BRITT: Properly, and what we’re doing too – what I wish to do is, I need as many individuals as attainable to have alternative to carry life into this world, and that is precisely what that is doing.
We’ll proceed to work on this subject. We additionally wish to help households as they’ve kids and are in a position to – on this setting proper now, we hear from individuals on a regular basis, whether or not it’s bringing life into this world, whether or not it’s the childcare value, simply the affordability side.
And I’m so proud to see President Trump lead on these. Truly, if you happen to have a look at the Working Households Tax Lower, Margaret, that is the very first time we now have truly elevated the childcare tax credit…
MARGARET BRENNAN: Proper.
SENATOR KATIE BRITT: … and in addition the DCAP tax credit in 20 years in some cases and 40 in others.
So we’re attempting to make it possible for individuals can’t solely carry life into this world, however that it is extra reasonably priced after they get right here, as a result of we wish individuals to start out and develop their households.
MARGARET BRENNAN: Actually…
SENATOR KATIE BRITT: That is what that is doing. That is simply the beginning, and sit up for persevering with to work for the American individuals.
MARGARET BRENNAN: Actually rapidly, you have got been attempting to label Russia a state sponsor of terrorism for stealing Ukrainian kids.
SENATOR KATIE BRITT: Sure.
MARGARET BRENNAN: Does the president’s determination to satisfy with Vladimir Putin endanger your efforts to get this invoice handed?
SENATOR KATIE BRITT: Look, I’m grateful for President Trump’s efforts on this.
In the event you look again, we’re on this conflict due to President Biden. If President Biden had despatched the weaponry wanted to Ukraine on the entrance finish, once we noticed Russia increase, we would not be on this conflict to start out with. Once you’re taking a look at what President Trump has completed, he has met with Zelenskyy extra instances in his 9 months in workplace…
MARGARET BRENNAN: Proper.
SENATOR KATIE BRITT: … than President Biden did his total time.
MARGARET BRENNAN: However do you have got help to carry it to the ground?
SENATOR KATIE BRITT: So, these conversations assist us to have decision.
The – the – properly, the primary woman clearly has been main on this. Now we have constructed up help. We’re having a listening to subsequent week. I believe you will note this come to the ground if there may be not a decision within the quick order, as a result of we imagine in bringing these kids house.
MARGARET BRENNAN: OK.
SENATOR KATIE BRITT: Margaret, it is about 20,000 kids which have been stolen from their houses.
MARGARET BRENNAN: Sure.
SENATOR KATIE BRITT: That is one thing everybody ought to be capable to get behind and Vladimir Putin ought to pay the worth for.
MARGARET BRENNAN: Katie Britt of the state of Alabama, thanks in your time this morning.
Face the Nation might be again in a minute. Stick with us.
(ANNOUNCEMENTS)
MARGARET BRENNAN: We flip now to the Center East, the place new assaults broke out in a single day in Gaza.
Debora Patta has the most recent from the area.
DEBORA PATTA: We’re seeing the primary heavy clashes between the Israeli Protection Forces and Hamas for the reason that cease-fire started.
The IDF says militants opened hearth on their forces stationed behind the agreed line in Rafah. Hamas says they weren’t concerned and have misplaced contact with fighters on the bottom there.
(Start VT)
DEBORA PATTA (voice-over): The cease-fire is beneath risk, as either side accuse the opposite of violations. 9 Palestinian civilians have been killed after Israeli forces opened hearth on a car they are saying posed imminent hazard when it got here too near them.
(MAN SPEAKING IN FOREIGN LANGUAGE)
DEBORA PATTA: “A truce is just on paper,” stated this mourner. “On the bottom, we’re nonetheless dying.”
As excavation groups proceed to seek for the remaining hostage our bodies, Israel insists Hamas is intentionally stalling their return. Households and pals gathered in Tel Aviv final night time, urging the U.S. to complete the job. In retaliation, Israel has closed the Rafah Crossing from Egypt into Gaza indefinitely. It was anticipated to reopen, permitting Palestinians to exit for medical therapy.
The supply of assist into Gaza has been stepped up, however the World Meals Program’s Antoine Renard says it isn’t sufficient and referred to as for all eight crossings to be opened.
ANTOINE RENARD (World Meals Program): That may be a actual subject, as a result of you may’t have solely two entry factors to achieve two million individuals. It is unattainable. It is as if now you are going to Manhattan and you’ve got two bridges, and that is it. Think about how difficult it might be.
DEBORA PATTA: The second section of the cease-fire course of consists of disarming Hamas and establishing a global governing authority. Proper now, there’s a energy vacuum. And Hamas is again on the streets, it says, to revive regulation and order.
On Monday, there have been movies of armed males, together with Hamas fighters, executing Palestinians they accused of being prison gangs armed by Israel.
(Finish VT)
DEBORA PATTA: And following these clashes between the IDF and Hamas, Prime Minister Benjamin Netanyahu has instructed safety officers, in his phrases, to behave forcefully in opposition to terror targets. And we hear from Gaza the drones and fighter jets are again within the skies.
MARGARET BRENNAN: That is Debora Patta in Ramallah.
An Israeli supply tells CBS Information that the U.S. was notified forward of the strike in Rafah.
In tonight’s 60 Minutes, Lesley Stahl speaks completely with U.S. envoy Steve Witkoff and adviser Jared Kushner, the 2 key negotiators within the fragile peace deal between Israel and Hamas in Gaza.
(Start VT)
LESLEY STAHL: Hamas now’s utilizing weapons to execute those that they understand as their enemies in Gaza. They usually’re additionally utilizing their weapons to reestablish themselves because the entity that’s governing Gaza. They’re shifting into the vacuum.
JARED KUSHNER (Former Senior Presidential Adviser): Hamas proper now’s doing precisely what you’d count on the terrorist group to do, which is to attempt to reconstitute and take again their positions.
LESLEY STAHL: Proper.
JARED KUSHNER: The success or failure of this might be if Israel and this worldwide mechanism is ready to create a viable various. If they’re profitable, Hamas will fail and Gaza won’t be a risk to Israel sooner or later.
(Finish VT)
MARGARET BRENNAN: You may see extra of the interview in a brand new episode of 60 Minutes tonight at 7:00 p.m. or after soccer.
We might be proper again with much more Face the Nation.
(ANNOUNCEMENTS)
MARGARET BRENNAN: We’re joined now by the president of the European Central Financial institution, Christine Lagarde. The ECB units rates of interest for a lot of international locations within the European Union, which is America’s largest buying and selling companion.
Good to have you ever right here.
CHRISTINE LAGARDE (President, European Central Financial institution): Pretty to be again, Margaret.
MARGARET BRENNAN: From the place you sit, how would you describe the state of the worldwide economic system?
CHRISTINE LAGARDE: In transformation.
MARGARET BRENNAN: Transformation.
CHRISTINE LAGARDE: Transformation, I believe attributable to a few issues. One is the tariffs, which have modified the map of commerce around the globe and reconstituted new alliances and reformed the best way by which we commerce with one another. I believe the second main transformation is the impression of synthetic intelligence on all the things we do from information administration to courting and all the things in between.
MARGARET BRENNAN: Completely, and it is altering how we even obtain the info itself…
CHRISTINE LAGARDE: Sure.
MARGARET BRENNAN: … to point what’s occurring.
However the inventory market has been up and down. I wish to speak to you on the opposite aspect of this business break about a number of the specifics with these commerce wars and what else you are seeing in Europe. However we’ll take a fast break right here. And we now have extra questions, however we now have to come back again in only one second.
(ANNOUNCEMENTS)
MARGARET BRENNAN: We might be proper again with the president of the European Central Financial institution, Christine Lagarde, and a dialog on the way forward for increased training.
(ANNOUNCEMENTS)
MARGARET BRENNAN: Welcome again to “FACE THE NATION.”
We return to our dialog with European Central Financial institution President Christine Lagarde.
You stated the economic system is that this transformation. S&P international forecasts, Trump’s tariffs are going to value international companies upwards of $1.2 trillion this 12 months with quite a lot of the prices handed alongside to customers themselves.
You have stated that many economists overestimated the impression of Trump’s tariffs. Does that imply you suppose we have moved previous the purpose of danger, or are we but to really feel the ache?
CHRISTINE LAGARDE (President, European Central Financial institution): I believe we’re but to really feel the ache. What we observe – I will provide you with some numbers. From Europe to the US, our items to the U.S. customers had a tariff of 1.5. With the tariff that was determined by the U.S. administration, it is gone as much as 13 p.c. So, the query is, the place does this extra 11-ish proportion level go? In the mean time, it is one-third on the exporter, so the European firm, one-third of the U.S. importer, and one-third of the patron.
What is going to occur, although, is that these two-thirds born by two corporates primarily, the exporter and the importer, is predicated on the squeeze of the margins. How lengthy are they going to place up with the squeeze of the margin? To be seen. And after they do not, as a result of it is changing into too tight, then it will likely be on the patron. So, it is a query of time.
MARGARET BRENNAN: How a lot they’ll abdomen the hit to their very own income earlier than passing it alongside?
CHRISTINE LAGARDE: Sure.
MARGARET BRENNAN: Properly, there are talks occurring we perceive between the world’s two largest economies. The Treasury secretary, Scott Bessent, stated on social media he’ll meet with China’s vice premiere within the coming days. This was after he referred to as the negotiator unhinged not too long ago, and President Trump stated that beginning November 1st there might be new tariffs as retaliation for Chinese language restrictions on uncommon earth exports. These are the most important economies on the earth. The place does this go? How damaging does this get?
CHRISTINE LAGARDE: To start with, I might low cost somewhat little bit of the positioning in the mean time as a result of that is typical of negotiating techniques on either side. Typical. You present your muscle groups and also you say that you’re able to kill. I am exaggerating, after all.
MARGARET BRENNAN: Sure.
CHRISTINE LAGARDE: However individuals must come to the desk as a result of it is the curiosity of each economies, regardless of the hostility that there’s between the 2.
However China is utilizing a bonus that it has constructed over the course of time by accumulating uncommon earth and the methods to refine uncommon earth after which to promote it to the remainder of the world. They’ve very, very sturdy buying and selling place on that entrance, and they’ll use it, which is why I believe that on the opposite aspect, the customers, that’s the US, Europe and some different international locations around the globe, we should always, you understand, be a part of forces and be a buying pressure on the opposite aspect of the desk of a promoting pressure.
MARGARET BRENNAN: Properly, precisely to that time, there was frustration on the American aspect of it that Europe hasn’t been standing lockstep with the US in relation to China. That China has leverage over Europe right here.
CHRISTINE LAGARDE: Properly, China at present has leverage in opposition to most international locations that devour uncommon earth. And I believe on the entrance of uncommon earth, the Europeans and the People are in the identical boat, and they’re rowing in the identical path.
MARGARET BRENNAN: But it surely’s different objects that you just see house (ph) on?
CHRISTINE LAGARDE: Properly, I believe, you understand, it is not for me to say. I am only a central banker. However the – the European authorities and the U.S. administration see it barely in a different way. I believe it is the – the U.S. would see a blanket pressure. I believe the Europeans are extra concerned with concentrating on particular industries or particular sectors the place they suppose that it’s going to make a distinction. So, it is a query of techniques that they are going to be discussing, I am certain.
MARGARET BRENNAN: So, you have got additionally stated not too long ago that you just suppose traders have begun to query what the greenback would nonetheless warrant its standing on the final protected haven forex. I imply the American greenback is without doubt one of the strongest weapons, frankly, that – that the administration has to make use of.
Do you suppose that it’s the rise of cryptocurrency that’s most threatening to that, or why are you frightened?
CHRISTINE LAGARDE: I see indicators that the – the attraction of the greenback is barely eroded. And future will inform whether or not there may be extra erosion of that. However if you have a look at the rise of crypto is primary. Once you have a look at the worth of gold. Gold is often in any state of affairs the last word vacation spot for protected haven. Worth of gold has elevated by greater than 50 p.c for the reason that starting of the 12 months.
MARGARET BRENNAN: So, persons are frightened (ph) –
CHRISTINE LAGARDE: That is a transparent signal that the belief within the reserve forex that the greenback has been is and can proceed to be is eroding a bit.
Now, along with that, we have seen capital flows exterior of the U.S. in direction of different locations, together with Europe. So, you understand, for a forex to be actually trusted, you want a number of issues. You want geopolitical credibility. You want the rule of regulation and robust establishments. And also you want, I might name it a army pressure that’s sturdy sufficient. I believe on at the least one and presumably two accounts, the U.S. remains to be in a really dominant place. But it surely must be very cautious as a result of these positions erode over the course of time. We have seen it with the sterling pound, you understand, manner again after the – after the conflict. But it surely occurs gently, gently, you do not discover it, after which it occurs out of the blue. And we’re seeing intriguing indicators of it, which is why I believe that having a powerful establishment with the Fed, as an example, is vital. Having a reputable setting inside which to commerce is vital. So, volatility, uncertainty to the extent it’s fueled by the administration will not be useful to the greenback.
MARGARET BRENNAN: Properly, rapidly on Ukraine. President Zelenskyy stated he spoke to you lately about utilizing frozen Russian belongings. What’s honest use in your view?
CHRISTINE LAGARDE: I believe honest use would encompass an operational mortgage that might be utilizing money balances as collaterals. And I believe that the power of the system needs to be primarily based on everybody holding Russian belongings to do the identical factor. So, if all these international locations holding belongings which have money balances accessible as collaterals go in the identical path of lending the cash to Ukraine, to be repaid by Russian financing of the reconstruction of Ukraine, as a result of Russia is the aggressor, then I believe that that might go a great distance in convincing Russia that it has to come back to the desk to barter.
MARGARET BRENNAN: Christine Lagarde, all the time nice to listen to your insights.
We’ll be proper again.
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MARGARET BRENNAN: We flip now to increased training. Universities are resisting the Trump administration’s proposal to reward colleges that decide to President Trump’s priorities. The White Home has requested that 9 universities signal a nine-page compact or danger forgoing federal advantages. Tomorrow is the deadline for suggestions. And up to now, not one school has agreed to signal and at the least six have rejected it.
The compact, reviewed by CBS Information, states that universities pledge to not use race or intercourse in admissions and hiring, freeze tuition for 5 years, cap worldwide enrollment at 15 p.c and require standardized testing.
There’s additionally a pledge for all staff to abstain from speech associated to politics.
On Thursday, we spoke with three professors who symbolize the views of their respective schools. Jeri Seidman of the College of Virginia, Leila Hudson of the College of Arizona, the Miki Turner the College of Southern California. We started by asking concerning the administration’s request for colleges to create an setting that does not, quote, “punish, belittle and even spark violence in opposition to conservative concepts.”
(BEGIN VT)
JERI SEIDMAN (Professor, College of Virginia McIntire Faculty of Commerce): So, belittling speech is clearly not one thing that any college would need. Nevertheless, as a state college, we’re required to abide by the Structure. And so, whereas a personal college may determine to restrict the free speech of college, workers or college students if that college determined to, as a state establishment, no person can require the College of Virginia to restrict the free speech or another constitutional proper of college, workers or college students.
MARGARET BRENNAN: So, Professor Hudson and Professor Turner, how do you all suppose your college goes to interpret that sort of steering? Do you suppose, to begin with, that that’s occurring in your campuses? After which, how is that purported to be regulated with this federal mandate?
MIKI TURNER (Professor, USC Annenberg Faculty for Communications and Journalism: I’m on a job pressure, a provost (ph) job for tutorial freedom. Educational freedom and freedom of speech are two various things. However what we’re working towards is to, you understand, discover that frequent floor between tutorial freedom, what professors and college students can or can not do within the classroom. And I do not suppose that this initiative will occur at USC. I am unable to – I am unable to see a state of affairs the place we might wish to restrict what we are saying, how we are saying it, and what we do as a college.
MARGARET BRENNAN: Professor Hudson, are you able to return to this concept that’s being launched right here, that within the view of the Trump administration, that is truly an issue that must be mounted, that there’s belittling or violence in opposition to conservative concepts on college campuses.
LEILA HUDSON (Professor, College of Arizona Faculty of Center Jap and North Africa Research): Properly, I might push again in opposition to that. Once more, as a public analysis college, we’re an open market, if you’ll, of concepts. So, you are going to hear every kind of speech. Now we have institutional guidelines that forestall harassment and positively violence.
However by way of attempting to control the speech, that, certainly, will violate, not solely the tutorial freedom that makes our universities nice, however the constitutional rights of the college group.
So, I believe that, once more, this can require much more dialogue and, certainly, resistance. And I have been very heartened, each on our campus and throughout the nation, to see individuals rising up in opposition to something that might silence any voices.
MARGARET BRENNAN: However by way of the particular accusation that there is a downside of, you understand, belittling and sparking violence in opposition to conservative concepts, do any of you object to attempting to counter that, or is it that none of you imagine that that is truly even an actual downside?
JERI SEIDMAN: The College of Virginia has taken the flexibility of individuals to cordially or communicate to one another politely however differing opinions very severely. And we now have a lot of initiatives on grounds to attempt to advance that. So, we positively suppose it is one thing vital and we wish to make it possible for these, you understand, is not occurring on our campuses. I do not suppose it is occurring to the extent that it will get reported.
However the factor that is actually vital is that every college ought to decide how these are carried out on their universities, what their points are and have the decentralized decision-making skill to determine whether or not their college has a difficulty and easy methods to cope with that.
MARGARET BRENNAN: Professor Hudson, you have been speaking concerning the open market of concepts right here. And that’s referring to the language within the compact that talks about the necessity to foster “a vibrant brant market of concepts.” However in these phrases, it is suggesting that that does not exist. That the overwhelming, you understand, persuasion of the professors on campus are liberal. That appears to be the accusation right here. Do you deny that that is a matter?
LEILA HUDSON: Properly, I do not suppose it is a difficulty that the federal authorities must weigh in on or another degree of presidency. Certainly, we now have traditions, we now have understandings, we now have an ironclad dedication to the ideas of free speech that imply that any systematic or power silencing of any particular person’s voice or perspective would instantly be recognized and rectified by extra speech, not by authorities intervention. So, I am very comfy that we will proceed to enhance local weather on campus. However the act of introducing authorities regulation into that completely undermines and sabotages that venture.
MARGARET BRENNAN: Professor Seidman, by way of the place the Trump administration’s compact got here from, there have been quite a lot of influences. However one among them, in keeping with the person himself, is billionaire Mark Rowan, the CEO of Apollo World Administration. And he stated he helped write the compact as a result of “with out authorities involvement, reform at universities might be troublesome,” he argues. He says there have been “authorities mandates” on issues like “range, on discrimination and scholar self-discipline,” so why view these at any totally different?
Why is he flawed?
JERI SEIDMAN: We have been speaking about tutorial freedom. And I believe in our skill to seek for the reality in analysis, we even have obligations within the classroom which can be totally different than you’d expertise in a company setting. And so, I learn the compact in a different way than he does. I believe the factor that I wrestle with probably the most concerning the compact is the concept that it rewards loyalty versus focuses on development of the reality.
As a most cancers survivor, I need federal analysis funds to go to the schools and the professors who’ve the most effective concepts to treatment most cancers. That is the best way to advance data. And teachers, that is actually – we’re reality seekers. The compact says, you understand, reality searching for is a core basis of establishments of upper training. And I utterly agree with that portion of the compact, it is simply the implementation of that reality searching for that I believe we differ on.
MARGARET BRENNAN: So, the – the compact says that if this proposal will not be signed on to by the college, they could select to “forgo federal advantages.” In the event you do signal on, there’s an opportunity of elevated funding and federal partnerships. So, it is not explicitly threatened, but it surely’s strongly steered that that might be the consequence. That is how – how your – how the college understands it?
JERI SEIDMAN: That is how I imagine most school perceive it that I’ve heard from.
One thing fascinating is that, even school who’ve grants have reached out to me and stated, you understand, we – we wish the grants to go to the locations which have the most effective concepts. We do not wish to have particular therapy. School are reality seekers. And so, we do not – we do not need particular advantages. Even when that signifies that our college will not be favored as a result of others do signal on, all of us need the most effective concepts to be superior.
MARGARET BRENNAN: On the state authorities entrance, there’s additionally stress at – – in Virginia and in California. In Virginia, Democrats within the state Senate wrote, “if UVA indicators this factor, there might be vital penalties in future funds cycles. Out in California, Professor Turner, Governor Newsom vowed to chop off billions in state funding if anybody indicators this factor. And the White Home says that is like California”endorsing discrimination, tuition hikes and confronting speech with violence.” In the event you’re between these two stress factors, what do you do?
MIKI TURNER: That is – that is an awesome query as a result of I actually have full empathy for our school presidents who must cope with this case proper now as a result of they’re sort of caught between a rock and a tough place due to all this political ping-pong.
MARGARET BRENNAN: Professor Seidman, on the stress from the Democrats within the state of Virginia, is that serving to or is that hurting?
JERI SEIDMAN: Strain from either side positively really feel – positively feels it.
I believe the distinction between the stress from the state degree and the stress from the federal degree is the state funds that come from the college are the college’s to find out how they use. The federal funds that we get are both for college students for monetary assist or are for particular grants. So, the threats to take away funding are somewhat bit totally different in that regard.
MARGARET BRENNAN: Professor Turner, one of many issues that acquired quite a lot of consideration from each events through the marketing campaign was additionally simply the excessive value of school and college tuition proper now.
MIKI TURNER: Proper.
MARGARET BRENNAN: USC is the best tuition of any non-public college on this nation. We have been taking a look at it earlier than. And I used to be floored. It value $75,000 a 12 months in tuition. It will get near $99,000 a 12 months, inclusive of bills. There are quite a lot of mother and father who would hear, oh, a five-year freeze in tuition and be glad that it went into impact.
MIKI TURNER: Precisely. And that is one of many parts I am in settlement with, concerning the freeze on tuition.
MARGARET BRENNAN: But it surely additionally needs to cap the variety of worldwide college students that you’ve, which might impression USC since you’re above that 15 p.c threshold.
MIKI TURNER: Completely.
MARGARET BRENNAN: Does one premise combat the opposite? Can – are you able to carry the associated fee down if you happen to lower out the college college students who’re paying full boat coming from abroad?
MIKI TURNER: In no way. In no way. We’d not be capable to try this as a result of, you understand, they – they primarily include money in hand. And never solely that, do they add to the monetary pot, however in addition they add to the collective perspective. And so, we wish these college students there from each nation.
MARGARET BRENNAN: I additionally wish to carry up one of many issues that was raised right here, and that’s, we all know the Supreme Court docket struck down race-based admissions. One of many first factors on this compact addresses the problem of preferential therapy, as they seek advice from it, primarily based on identification. They listing, intercourse, nationality, gender, faith, race or political beliefs.
Professor Turner, you’re employed on recruitment, I perceive. How does this impression recruiting college students?
MIKI TURNER: Sure. If that goes into impact, that is going to have an effect on the best way I do issues. However I do not suppose that it is going to have a big impact on the best way USC actually does issues. You recognize, we actively recruit, you understand, college students from all walks of life, of all races. And I do not suppose that, you understand, we should always cease that as a result of, once more, you understand, we’re serious about these college students. And we’re serious about their development and the way they will exit into the world and alter this world for the higher. And to – with the intention to try this, they should interact with several types of individuals with totally different cultures. And so, hopefully, you understand, this would possibly not have that impression on our faculty as a result of, you understand, if we will not – we actually cannot afford to have that occur.
MARGARET BRENNAN: Professor Seidman, the College of Virginia’s president was compelled to resign due to a Division of Justice investigation associated to DEI commitments. Do you get any indication that the federal stress on UVA goes to go away?
JERI SEIDMAN: Two of our open investigations with the Division of Justice that associated to admissions round DEI have been closed. So, that’s excellent news. And people have been closed primarily based on info we supplied that apparently happy the issues about race being utilized in admission.
I believe this specific merchandise of the compact would impression UVA. UVA has all the time had a really holistic method to admissions. We discover expertise to be a lot broader than simply take a look at scores and grades.
(END VT)
MARGARET BRENNAN: Since we spoke with the three professors, USC and the College of Virginia have rejected the compact. No phrase but from the College of Arizona.
We’ll be proper again.
(ANNOUNCEMENTS)
MARGARET BRENNAN: For the primary time in a long time, CBS Information is now not reporting from contained in the Pentagon. Our reporters, alongside these from dozens of networks, newspapers and wire providers emptied out their cubicles and workspaces this previous week. The journalists exited slightly than comply with a 21-page listing of recent restrictions which might forestall them from soliciting info that has not been pre-approved by the federal government.
The Division of Conflict, as the present administration calls it, has a $1 trillion funds and employed 3 million army and civilian staff. CBS will proceed to report from exterior the constructing, however journalists will now not have the day-to-day, face-to-face contact with the army that helps the general public perceive what U.S. troops are dealing with.
Secretary Hegseth as soon as promised probably the most clear administration ever. However as one former protection official informed us, “The American persons are going to know rather a lot much less about what their Division of Conflict is doing.”
That is it for us at present. Thanks for watching. Till subsequent week. For “FACE THE NATION,” I am Margaret Brennan.
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