Transcript for Dow Jones drops 800 points, impacts of new immigration policy, Newark water crisis
Happy Wednesday welcome to the briefing room coming to you from the Washington bureau ABC news I'm John Santee she alongside Katherine falters. We are watching right now the stock market stocks not reacting well to news coming out of the treasury would we've been trying to understand this so basically. What's happening right now and you see the numbers on your screen. The ten year treasury bond. Bell for the first time since 2007. Below the two year treasury bond yield that is usually. A sign that need be perhaps we need be heading. This some troubles in the economy of course is all comes on the heels of the battles president trump is having with Fed Chairman. Jerome Powell also purse to try to understand exactly. What's happened in the markets were Jordan right now they David Wetzel he's a director. At the Brookings institute and David thanks so much for taking a time this afternoon to speak to us I wanna be dean with a topic I was gonna ask you about any way. But fortunately for us the commander in chief just tweeted about it and this is the yield curve so here's a the president just weeded. And let's start there he writes we are winning big time against China. Companies and jobs are fleeing prices to us have not gone up. And in some cases have come down China is not our problem though Hong Kong is not helping our problem is with the Fed raising too much and too fast now cheese slowed it caught. Spread is way too much as other countries seek thank you in all caps to clueless Jed Powell and the Federal Reserve Germany and many others are playing big deemed crazy inverted yield curve. We should easily be reaping big rewards in gains but the Fed is holding us back. We will win again. All right David this is where we turn to you. Explain to us this yield curve explained why the president is pushing right now Jerome Powell to actually do something on us. I let it trying to explain what's going on on the markets and the economy but I'll take a pass on explaining what exactly Donald Trump. Means when he lets loose like this OK so what is the yield curve the yield curve is the relationship between short term interest rates. And long term interest rates usually long term interest likes like the ten year. For the twenty year are higher than short term interest rates because people demand some reward for taking lending money for a long period of time. When the yield curve is Ensberg and that is one long term interest rates. Are lower than short term interest rates that's usually seen as a bad sign it seemed that the markets expect. The Fed is going to have to cut interest rates are alive it and why would defend do that because the markets think the economy's in bad shape. And so the reason everybody's all exercised about this the markets which are sometimes right. Sometimes get carried away are suggesting that the economy is headed for trouble. The Fed is going to have to do what Donald Trump has been demanding cut interest rates can cut them a lot to help the I. Irony here is that the reason. The markets think the economy's in bad shape. Is not because they think that that is during they think that Donald Trump. Is ruining the world economy with his trade policy and shaking up business people so much. That there are reluctant to investments and will be reluctant to hire. One out I just gonna mention because yesterday you saw how well the markets reacted. The announcement that the United States who is going to delay those 10%. Tariff on Chinese goods where as we head into the holiday season the president announcing that. I'm before he went on his trip yesterday but. Where exactly is the Fed at the moment because I just read your report upon Brookings with your colleagues you write it to the Fed governors are on board what with working now on the YCC and the former. Two former chairman's of the Federal Reserve Ben Bernanke and Janet Yellen have also supported this do we know mayor Jerome Powell stands at this moment in time. Writes I think there are two different things here we have to separate them. The current inversion of the yield curve is in question is is the market telling the fans the economy's really in bad shape. Or is the market saying we expect the Fed to cut interest rates and we're just getting there before the Fed actually announces so as to short term question. Yield curve control which does use the words he'll quote is something a little different it's what happens. When the economy gets really bad. The Fed cut short term interest rates to zero as they didn't 2008. And then what do they do. And what they might do is say we've cut short term interest rates to zero. And revenue due as the Japanese have done we're not gonna last long term interest rates rise above some levels at 1% but that's not really a relevant issue right now. The relevant issue now is. Does Jay Powell look at the markets and look at the economy and say wow. This is getting worse fast. She Germany's had a lousy quarter there are GDP is shrinking. The trade thing is really shaking up business and that we've got to get ahead in this thing can cut interest rates a lot maybe half a percentage winner next meeting. We're in a chain Powell say the markets are carried away here. I feel like I'm looking at a hall of mirrors. I don't want the markets to tell me what my best judgment is about where the economy's going after all unemployment is still very low. Inflation the latest reading is as suggesting it's picking up a bit. And the latest survey I saw an economist from Bloomberg and Wall Street Journal and others say they put the odds of recession in the next twelve months at one in three. The tires than it was before. But the economists who usually don't see these things coming to be sure. Are not yet saying that we're on the cusp of recession so it's a hard call for him to make and the president makes it harder by all the shouting we. And temple as neighboring this over do you because we know the president is going to campaign on the economy heard that David said just there. 13. Is now where we're looking in the next twelve months. In the next twelve months from the president's going to be very focused on his reelection effort and that is going to torpedo that connect campaign pledge from. If the economy does go down the. Who exactly is not only are you and I saying that but a lot of people close to him have predicted that. You know the outcome might be not what he wants if the economy tanks and we know that he doesn't have a great relationship. With Powell he has caused him clueless son is on Twitter and even you see former fed chair is uniting behind Powell saying these attacks are appropriate but John not gonna go away and there president and his advisors are very. Aware. That the economy needs to be in good shape for him though when the auctioning it. And David lastly you just because I know people are obviously watching their Ferraro and -- they're watching the stock market today. When is the next meeting of the Federal Reserve that something could happen. Of the next meeting is in September but I just make a point here. But lady the president has been trying to say if the economy falls apart its defense fault. But I think what's happened to him on I'm unfortunately for him is all this tariffs have been trained staff. Is stepping on that story so people are gonna say the economy was doing okay. And the Fed did a little bit to try and open and then you've screwed it up of all this. Tara sable railings I think the reason he's getting so little bit agitated it is his idea that he can tell voters its defense fault not mine is now under question. Is now going complex because of everything going on the tariffs he that. Penny slot a sense David west's all over the Brookings institute thank you very much sir we appreciate it we're gonna have much more on where the stock market is going. And the economic output tonight on world news with David knew where we are gonna switch gears though now in the briefing room. Because we have been following what is going on with immigration the announcement they came up and the president acting director on immigration reform can could Shelley earlier this week. Still having major ramifications I want to bring in ABC's Quinn Owen who's been watching this one for us OK so the announcement. From could Shelley we saw. And in the brief very rare to actually see that room activated for one's that the whole another story. Earlier this week ease that. The federal government is going to be changing. Some of the public programs that are available to people coming to this country. What programs are. So what they're going to be changing is the programs that might immigrants might attend a potentially apply for in order to secure public benefits like. Medicaid and food stamps writes I've expanded the list of programs that could be used to deny your application for legal permanent residency. These are people were living in the country. Many of them legally or people who might come in the future who then could be looking to applied to to Medicaid or food stems primarily there's a few other. Supplemental income programs as well. But if the government does determined that they might use these kinds of programs they can be not deny that their application for for permanent residence in yeah. And you you in the teen here have been following every man's going on the immigration front every day I mean besides happening on the border but these changes now two people trying to gain. Legal citizenship. What are you hearing from the different interest groups are paying attention these what's your biggest concern at the moment for these individual. So indicate immigrant advocates are very concerned we've already seen lawsuits start about this role because there's a group of about 23 million people two are either. Non citizens themselves or who live in mixed households that might feel this incentivized dude onion roll from these programs as an food stamps programs. Medicaid programs if they feel like their application for citizenship or legal permanent residency might be impacted. So a lot of concern about the confusion that this might cause an immigrant communities and what will pay what it will prompt people to do. It could mean that it has impact on US citizen children that live in these next house. And and on that noted confusion you know I actually was confused earlier when you know we're talking about this how does this affect green card holders right now. Green card holders are are not impacted by the time they're playing to stay in the country this rule also doesn't impact refugees or asylum seekers to come and green card holder and I leave and I wanna come back. That's where gets more accomplish a guy then and it especially if you're planning to leave on Morton for more than six months threat that's when you probably to get an immigration lawyer and hatch opens this Quinn ON and arch. In watching that you can read all of Quinn's great reporting up on line abcnews.com. Right now but we're gonna stay on this topic. Because really act as we've mentioned these are programs Quinn just laid them out for you there that help people coming this country in my own family use them many many years ago. And the benefits they provide are so so important let's bring in two guest right now they can speak very well this we're joined right now by Angela Sutherland and Evelyn Bruce Levy air co founders of you me. This is an organic baby food company based on the West Coast they've been on some of our ABC programs over the last little bit ladies thank you very much. For taking time this caption is cheap to us on this important topic we appreciate it. Let me begin. And we thought with you Angela because the story we understand is that your mom actually Keynes United States has a refugee up from Vietnam with only fifty dollars. In her pocket and some of the programs Quinn was talking about arm are the reason that she was able survive and provide a great life for you know. Amy and I really created the increase she'd seen era and sixty dollars and Arctic and GE and my heart problems and anarchy and extremely confident that he intends to keep in Haiti without the need you not eat our policy and it's sort federal assistance. Should our annual pretax GE you're with the Ichiro earth and her and her brother who is sixteen times and really some works and it happened at this won't. And then eventually. You know Andrea a company Muslim people and so any precedent for me news unions in Morris. And Evelyn your your story quite similar with your family coming from the Indonesia. Behind parent here and is indeed it to California. And might actually had a job at a school in Indonesia. Good job on Patricia and he happens meet. Image from California Merced taking by a story that they want to help answer that he really rally. And laugh and yeah that he's in the United States. Even if he sake and Ayatollah. And I am hearing why even part of our exit a martyr Olson. Aaron how business income Grasso rummage the product and vinegar yeah. And talk a little bit you know your your pride as I mentioned you you do provide. Organic baby food Quinn was mentioning food stamps would be affected we know many people immigrate this country with children sometimes a young children. Those are nourishment that the children obviously need and it they don't have access them I'm curious just in your line of work what's been so let things your hearing from people. As their concerned about it trying to get some of these benefits. Yeah. Actually you might think that didn't call her sister does happen with you for nutrition experts about race and that access to happen to pediatricians and machines treachery of our hosts here is not doing and it's an early opponent of liberals. Occasionally embarrass. You know recently we heard over you. Eighty cents and are under. Yeah so I mean it's it's really important he resources. That family depends on especially coming earlier and recycling every hit it isn't ready. That nutrition and sure that they can actually I'm not there isn't all it's no we're trying to become. Gritty Judy yours is a sign on the senate next generation and yeah Clinton. Angela Sunderland and that'll adversely thank you so much of the team in time this afternoon as I mentioned the these are programs. That help families like here she will provide jobs and out so many people. And it's on. It's going to be questioned his see what happens here to trump administration thank you very much we appreciate it. We're gonna switch on to another topic now so we've been following what's going on with this White House and the gun debate we know that the senate did not come back from recess the house did not come back from a recess but apparently according to president trump this is going to be. A top agenda item when everybody comes back in the next couple weeks after those two mass shootings happened just over little over a week ago. In Texas and Ohio army ring Catherine folders. I'm back into this conversation and Catherine. You and I and then it tracked. Our understanding is that there have been conversations. Going on right now and meetings between the campaign and members of congress about getting something going. You know a bipartisan group on Capitol Hill and it's not only. Those on Capitol Hill if that campaign as well on as you and I. Have been reporting now they've had some phone calls a with the campaign and there's been is some suggestion. That may be the campaign could collect some data. From the president's Boehner based deceit how this is playing but it looked. Many decisions. On next step said he's expressed interest in them. Some bipartisan bills but there's a lot of factors John I'm lay here whether it's on the hill whether it's between the campaign. In the White House but he's also spoken multiple times with the NRA's Wayne a lot Pierre. Yes so and. And that's a question to write because the NRA. Came up very early on the I think it was 2016 in the endorsed him finally that is right or were right before had the nomination something like that my brains died four years ago. After covering the campaign. But the fact that come there could be down separations. Between I. The NRA and the trump White House quite stunning to think we're that close relationship once. What is and I think the president also things he has to walk a fine line with that relationship he wants to have a you know. Close relationship of the NRA when of that most powerful lobbying groups but at the same time I think you know he's open to him to other things that and the NRA isn't one. Background checks and you know there really is also. Concerns separately from that but about how missile impacts twenty tonic in. We're going to be watching that cap and stay with me for this next story because we've been also following on. President trumps words we know what were some of the language that was used by the shooter down in Texas when he shot and killed so many people at that mall on an early Saturday morning. But we actually went through and Doug at some of the cases right now that are on federal dockets and others across this country and we identified. 36. Cases were the presence in Maine and his language. Are used in criminal cases. That have a connection with violence or assault allegations were joined right now by ABC's Mike Levine he reported this story so Mike. You well spent a lot of time on this I know could you work next door to me I'm going through all of the cases. Here that we're trying to track and you found so many examples. Where defendants. Are invoking Donald Trump's name. Yeah we felt like he said 36 cases this rhetoric brings people together but we seek court records police reports. We found ten K not in cases where act. Actual act of violence. Some mention Trump's name. Either right in and in the middle of the all right we're pleased we found ten cases where threats and talks. Where a person doing that actually named the president. And only got another ten cases where. Once a legal case was brought lawyer's defense attorneys tried to use trumps rhetoric to explain their. Defendant's actions. And Mike you know IE is a set I've I've read your story and for those interest and it's fascinating need to go online abcnews.com. Right now and read my ex reporting. But one example you used my is it keys. From 20168. Roses before Donald Trump e.'s president obviously but he is arising Republican candidate that point pretty close to securing the nomination. And they keys she mentions involving this 61 year old John Martin roost he's from or again. And what we saw in that case as you well know is it Roos posted at least 34 messages. To Twitter about trump. Talked to me about what the Department of Justice is doing right now RD. As as we see this rise in mass shootings people committing violence. Are they actually focusing in on when people are invoking the president or his rhetoric. On social media trying to identify people who like roost before they strike. Of course privately they're looking at death whenever they spot serves indicators Brett acts. World what for some celeb might indicate some sort of action. The storm that was also been very public recently. Wrote to terrorists and white supremacy. They have openly asked the public for help and which is something. We see gotten Justice Department and the FBI. A few years ago they had issued press releases again begging the public are. Mike Levine always on this case for us think history here read mikes great reporting right now abcnews.com. Catherine just quickly to bring UN on this because when we both covered president for. Too long on going that's 2015 and sixteen for us. But this language in this dialogue the president has repeated Elise said that he does not influence these people but yet. His words are being latched on to. That he should dial back some of this letter a little bit but he feels that he's under attack in wants to. Fight back about it but that's right I mean you've seen that that even recently with C a for a democratic astonishing event and in he says that went when they had that chance at a rally that that wasn't because I can't pick and Saint Louis but let. This sentiment was there and in that keys house speaker Nancy clothes he has had to actually. Get capitol police capital hopefully have involved. To secure those woman safety yes yes on on and on capitol how you can see when they're walking around I have capitol police officer and towel and and now whether I remember we were asking about us whether it's been at you know a threat to their lives specifically. And if anybody has sent them messages. We're not quite sure about that but but the reality is that the big increase security and 'cause. These because at the chance and because of his supporters are saying the things that he's saying and and that he's fuel. Now the president is in me back on the campaign trail tomorrow we're gonna see him up in New Hampshire and two week suspect Catherine I mean it's there I mean that I'm asking a stupid question has Cunningham announced but here because. Do we think that the president recognizes that his words need to be. A little careful or in some of these respects I think had aides said it. Million out well well I think you and I both. Heard some aides have told him to tone it down you know and away and I think he's admitted at some points you know whether it was a year ago or a few months ago. That maybe he could possibly talk tone it down but in this case. A while he denounces while he says he denounces some of those chance by his supporters he's not act in that case he was an actively. Trying to stop them so I think it's two prongs in a way does he think that he's wrong thing has not keep us and I and I think. Is some of his name's and I immediately depends what example we use as you now but some of his aides may think you know will help him what the white nationalist example that we do know Unita then you know president is is very angry about that he has yet to be called. So. But you know regardless we'll change well these attacks changed you know your. Yeah it's a totally hanging wherever the president will telling -- him do his own things that come as we've seen time and time again. But it is interest staying which is looking into where we're going into the fall. This is blaming one of those rare rallies were we've seen him up in New Hampshire there has been speculation as to do a little bit funny funny that you first second that perhaps tomorrow we could see a new senate candidate enter the race there's been conversations that Donald Trump's first campaign manager and pouring -- ask you could enter their race. When we know right now. Yes so we united net quarry island askew will be there at the rally with him tomorrow any New Hampshire in his home state of ignoring his home state. Com and look he would ask you this tweeting yesterday about new polling that he could do wellness day. The president hasn't come out and endorse temp him yet but we know that he's had conversations with him about it and annie's heavily wedding and now the timing of it is so. A little unclear but look there are rumors have been floating about as he's said. On the record tell us that he's strongly. Considering Ansonia are seems like the good times and just how the scale of course president they say now I heard you are running and bring up on your name isn't your normal force up. Nothing quite there right now but now. An and and any other means interest thing here with this president and who is that who knowing how he's learned more on the job he knows he needs more supporters more allies. Up on Capitol Hill we're starting to see potentially some change. In it's funny funny or regime intensely some of the 23 democratic contender is potentially leaving the presidential race and running percent it we've been hearing means maybe about eight O'Rourke down in Texas or John Hickenlooper. Out in Colorado in the trunk teen knows that and ordered actually have a successful 20/20 in their mind he can't just be about Donald Trump in the east he had these other candidates he brings. On board EI and I think that's. Really good point that you make because I think that the campaign and a lot of the folks looking over their in the political operation realize that needed to finish ever stronger. A ground game predicting that. At first but but but that's a huge and it's not just Donald Trump vs the democratic candidates that those who are running for senate who are out details and they realize some. That that's going any big challenge for the men are planning out Harry kept from folders keeping an all the. Stressed thank you Catherine other story that we are watching and involves the twenties when he field. Is what's going on in Newark, New Jersey right now they are as the water crisis up there and in involves the former mayor of new work Cory Booker who happens to be running. For the White House we are joined right now on the phone by caring he she is a reporter with the Newark Star Ledger. Karen thank you for taking the time this afternoon to join us I know you've been working on this story for the last several years so walk me through if you can because the headline on your ears site right now at the moment. Music filtered water that was been brunch and new work. Apparently had four times the level of leg. What is going on right now. That's correct so what's alarming people at the state and federal level. Is that these filters which are supposed to be a short term solution to the lead on the water. Don't appear to be working into the street at the homes of the problem meant we have a really small sample I hit the from the results that we've seen. They're they're surprising results can generally these children are supposed to have little or the lead. So when you run your fox that it runs through the filter of some friend nonetheless and comes out clean and that's not happening in at least you com. Now so Cory Booker is out tweeting today at Karen that. The federal government needs to stepping needs to do something but they're also been questions raised about what Cory Booker did and did not do during his time as mayor of New York. Right so Booker to be clear haven't left the Canadian two dozen thirteen and eleven leveled in new works spike in 2017. How that worked for the issues with lead in the schools. About April when he sixteen too provocative no longer mayor here you win the city's water started to have this high level of the contaminant and it. And Karen what do we know right now as far as the federal government's concern and they are the officials they're going to get their way are they going to get more support. From the federal government what are you hearing from the two US. Senders from new Jersey's offices. EPA have not yet responded to calls from governor Murphy. Calls from commissioner of environmental protection to step up and to help pay a further bottled watered education. That they have put up about 70000. The cases of bottled water so far. And the governor today said you know that the EPA and federal government has I got up their weight and has the really put. Step up here. All right carrying. ABC's world news with David Muir that is gonna do it for us in the briefing Herm I'm John Santee chief thanks much for joining us. You're watching. ABC news.
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