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A news round Up Information Overload Hour. Our toll free number is eight hundred and ninety four one Sean. If you want to be a part of the program. If you're following Jerome Powell the Fed share in any way, shape, matter or form, it is clear he does not like Donald Trump. To me, it's gotten personal, especially on the issue of interest rates, because when you look at the economy and you know all of the doomsday predictions have
fallen flat. And it's getting a little bit frustrating to me because with what he is now, his incredible reluctance and resistance to do any thing that would be wise and smart to help the economy, it just defies logic and common sense. Because every measure Trump is arguing that the Fed's key borrowing rate should be at least two
percentage points lower. I agree with him, you know, and sure enough, predictably, Powell, you know, when you know, goes on and on repeating, regurgitating things that just never have come to viruition. And I don't blame the president for being unhappy, you know, And it is it just from
a from a financial standpoint, from the economy standpoint. You know, if you look at Donald Trump, you know, every prediction they made about what tariffs would do to the economy and higher inflation, a massive unemployment, none of this has come true. None of it. The CPI measure of inflation, you know, is you know, for the twelve months ending, you know, we we're now at the lowest levels we've
had in four years. Consumer confidence has never been high, the number of jobs available for Americans that's never been higher. And yet interest rates remain ridiculously high. And by the way, the one area of the economy that is hurting as a result of it is the home building industry. Because interest rates are so high, nobody's going to give up their three percent thirty year fixed rate mortgage to get a seven or seven and a half percent thirty year
fixed rate mortgage. And you can't blame people if not wanting to do that, is what Powell said in his announcement.
Changes to trade, immigration, fiscal and regulatory policies continue to evolve, and their effects on the economy remain uncertain. The effects of tariffs will depend, among other things, on their ultimate level. Expectations of that level, and thus of the related economic effects reached a peak in April and have since declined. Even so, increases in tariffs this year are likely to
push up prices and weigh on economic activity. The effects on inflation could be short lived, reflecting a one time shift in the level. It's also possible that the inflationary effects could instead be more persistent. Avoiding that outcome will depend on the size of the tariff effects, on how long it takes for them to pass through fully into prices, and ultimately on keeping longer term inflation expectations well anchored.
Hi joining us now to respond. Joe Lavornia is with US Treasury economist, and he's here to discuss Powell's inability to step outside of his own political bias and help the American people. He's also costing the country a fortune because we're paying the higher interest rates as well. What's your reaction to me, it's personal and political. Your thoughts, oh.
Hi, Joan, thanks very much for having me as as counselor to Secretary Best and we don't want to weigh in on monetary policy, but you did raise a couple of very key points, and that is under President Trump, inflation, which is one of his primary goals on the campaign rallies,
he has delivered in spades. Inflation, as you've correctly said, has come down white dramatically and is going to continue to drop in all likelihood because of what it should be imminent passage of the One Big, Beautiful Bill, which will help expand the supply side of the economy and continue to lift blue collar wages, which I'm not sure if you saw this shown, but the White House to put out earlier in the week, are growing at the
fastest rate for an initial term. I'm assuming that I'm treating this a Trump term as basically a new term because of the gap in between. It's the fastest five month increase in real blue collar wages we've had on record in the day to go back sixty years. So there's a lot of good stuff there, and the President deserves credit for it, you know.
But I'm having a hard time understanding, and it seems personal. If you look at the comments of Powell, the economy has been resilient, and part of that is our stance. So he's like he thinks he runs the economy, almost like he believes he's president. Now he'll be out in May of twenty six, and frankly, from my perspective, come Andy. It can't come soon enough. I think the frustrating thing is we have to wait that long and and maybe Scott Bessing, his name has been floated as a possible
replacement the Treasury secretary. But somebody that understands the economy understands, you know, we we we had a target rate, for example, the inflation rate of two percent where to two point one percent, so we reached that target rate. Joe Biden brought that number up to nine point what four percent
or five percent, so it definitely played. You know, raising interest rates temporarily had its place, but that time has come and gone, and frankly the President is just you know, apoplectic about it, and he stuck with this guy until May of next year.
The you know, it's when you talk about inflation, and he was at a forty five year high under under President Biden. And the tariffs and how inflation has come down. I mean, it's remarkable how the the professional analytical community,
the professional forecasters has gotten the inflation wrong. So what I can tell you is that and we've seen it how resilient the economy is, and how oftentimes people when they say certain things are going to happen, there's no question you have to have higher prices because of tariffs. And what we've seen, of course, is a terriff being absorbed in the margins of the foreign sellers, and it's happened as inflation's actually come down, which is which is
very positive. Youth economy Sean, as you know, is extraordinarily resilient. And with the bill imminent passage of that, I we should be we should be talking about three percent growth. And I know you've talked here about the FED. But the other thing I want to mention though, is when people talk about deficits because of greasury.
You know, we you did see the Atlanta Fed what a two week and a half, two weeks ago, you know, they have projected GDP growth of the second quarter. They were up to four point six percent. I'm not sure where it is today.
Yeah, it's it's around, it's four maybe a little bit less. A bounces around. But here's the thing is, we talk about interest rates and debt and all these other things. You know, the Congresional Budget Office, I believe it's just much too pessimistic forecast. They're assuming the next ten years
the economy grows under two percent. If we're going to start growing a three percent plus in the in the third and the second quarter, maybe more, and that is the new trajectory, which seems to me to be reasonable because under President Trump's first term, before COVID, we were growing at nearly three percent. Since then, productivity is accelerated. We have an II in AI spending boom that this bill coming through is going to lift CAPEX in an
even more meaningful way. We're going to generate faster growth, which is give us faster revenues. And this is an important point because they see so much financial press. It just talks about these big, large deficits with no admission that the assum that the assumed growth rate is too pessimistic, and it's just sort of like the fear cells.
We look, the Congressional Budget Office does not exactly have the best track record. You know, one thing that it seems nobody is factoring in is, for example, the Reagan tax cuts or or the Trump tax cuts. What happens, Revenues to the government increase, they don't decrease, and they always backer that in as a decrease. For example, in Reagan's term, revenues to the federal government doubled. He created twenty one million new jobs. At the time, it was
the longest period of peacetime economic growth in history. The first three years prior to COVID. In the Trump years, the president created record low after record low unemployment for every demographic in the country, African Americans, Hispanic Americans, Asian Americans, women in the workplace, African American youth unemployment, gas prices never once during his first term ever got above three dollars an average per gallon. Gas prices are now down dramatically,
small business optimism, consumer confidences up dramatically. We have low inflation. And the only thing that is that is showing signs of trouble is directly related to the Fed's interest rate policy, and that is home to And there's an easy explanation for that. Who's going to give up a Would you give up a three year, I'm sorry at thirty year mortgage to get into a new home at at you know, double the interest rate, you'd be doubling your payment. It's insane, right, No, So.
Sure, now I understand your points, Sean, But you know, here's the thing. Let's take ten year yields for a minute, because I spent most of my career has been in the private sector. And the good news, and kudos to Secretary Best and and that is the we've gotten interest rates. You know, interest rates. The market was very fearful right around the Liberation Day that and shortly thereafter the ten year yelds to move up to five percent. The good news is the economy is booming. Market rates are in
the middle to maybe slightly below their recent range. As inflation comes down more, the inflation component of that long term interest rate will come down. And the good news is market interest rates can still fall with President trump policies and that will help homeowners and then hopefully over time, you know, we'll see those other rates come down as well.
Well. Once interest straights start coming down, it'll bring the real estate market back up and there'll be a lot of activity. But right now, people are going to hang on to their low interest rate mortgage that they locked in years ago. Is one of the things that we're not factoring in here, and that is Donald Trump his commitments because of his trade policies and the threat of tariffs,
brought this in of over ten trillion dollars. We've never had commitments like that ever in our country's history before. And that's new manufacturing inside of America, and that includes things that are beneficial towards national security. That would be pharmaceuticals and semiconductor chips, but also you know, revitalizing automobile manufacturing in the country on top of you know, artificial
intelligence and new technologies all of that. I mean, aren't they aren't all these industries going to be creating high paying career jobs for people well, well.
That's it. It's that's what the President's policies are designed to do, is to bring back high value added manufacturing that pay very high wages. And as you were, giving a very accurate description of how things have been playing out. As the Treasury Secretary has said, national security and economic security are one and the same. They're very you know,
they're interconnected. And you know, we talk about interest rates and getting interested needing you know, you know, people want to interest rates lower, which I understand, but the people should also know that the tariffs, which have not led to any inflation, also right now we're generating around two hundred billion dollars at an annual rate, and that number may even be a lot higher. We're going to get
a number. We don't have the full numbers for June, but the tariffs are bringing in a lot of revenue, which also ties into the notion that the president wants to rebalance trade, reindustrialize as you said, and of course those those foreign capital commitments are also quite substantial.
Yeah, all right, quick freak, welcome back. More with Treasury economists. Joe Lavorgna is with us, and then we'll get to your calls coming up eight hundred and nine to four one Sean, if you want to be a part of the program, continue with Joe Lavorgno talking about the economy, and a very stubborn fed chair who will be replaced in May of next year, can come soon enough. As far as I'm concerned, what do you think Powell does from here on out? Is he just gonna, you know,
be in this cold war with President Trump? And because President Trump obviously disagrees with him, you know he's going to show President Trump who's boss until May of next year before we can have any hope of, you know, significantly lower interest rates at a minimum. I think we needed a fifty basis point reduction yesterday. In my view. I think the economic numbers warrant that, and I think that would be just the start. I personally agree with
the President. I think a one basis point reduction would be appropriate too, and I think it would have the added impact of jump starting the economy in ways that people aren't even imagining. And if there's one big beautiful bill comes in and manufacturing facilities. In other words, if you build a facility, I think it's one hundred percent you get a tax deduction in year one I mean that that's going to incentivize everybody to build immediately.
They're not going to wait, yeah, no, that's right. Well, yes, it's You're exactly right on. It's one hundred percent expensing a plant and equipment in addition to factories which we
even had before. That'll be very very supply side constructive, meaning it's not going to cause inflation, actually bring inflation down as the economy accelerates, which is what we saw, as you mentioned earlier, under Reagan implicitly and also under President Trump's first term, where we had effectively three percent growth prior to the pandemic and inflation was two percent
or less. Look long term, that all support certainly low interest rates, no question, broadly speaking, and you know I'm an optimist, so I do expect the housing market to recover over time, that affordability won't remain depressed. The income numbers, the blue collar boom we've highlighted is certainly very positive. So there are a lot of good things going on, and I'm going to be hopeful Seawan that.
Well, I mean, the added supply and the higher interest rates and lack of activities is making home buying more
affordable for people maybe that's certainly good. But if you really want to stimulate the home buyer market, the single best thing you can do is you got to you got to get these interest rates now, because they're too high and people simply cannot afford to pay two thousand dollars more for a monthly mortgage payment just because Jerome Powell has an agenda and he doesn't like Donald Trump, which is where I feel we're at here. It's to me it's gotten personal. Am I wrong on that part?
Sure? I can't comment on that. I mean, I I'd rather not say. I mean, I understand your point, but well.
I'd rather not say. Is it of a strong possibility?
Well, here's what I would say again, I would say that.
It seems per personal to me.
Well, the I've not talked to the President or cheer Power on that, but it seems to me though that what we have right now is an environment where we've got very good growth, inflation's coming down, that by itself
will pull long term interest rates down. You know, when we talk about housing affordability, the income part is very powerful, and that's something the President has directly all over, and that's looking good home prices in some places have moderated, but I do expect over Timeshewan, that you will see affordability pick up, because you'll see market based rates come down.
And you know we need I got to run, but we need interest rates now. But Joe, I appreciate you being here. I really do, my friend, God bless you, and American people need some relief with this. You are listening to the best of the Sean Hannity Show, and stay tuned more memorable moments, interesting guests, and a lot of fun coming up next twenty five Dons to the top of the Hour, Punchline and Patriots that is a week from this Saturday. And that's in Clearwater and Tampa.
That is at Ruth deckerd Hall. Tickets very limited seats left. Same with Fort Lauderdale. That's the twenty ninth day after. If you're interested, we'd love to have you. It's going to be ir reverend crazy, fun and absolutely politically incorrect. That much I can tell you now. We have gone
over the numbers. They are overwhelming, and that is you know, if you look at even vague news CNN, you got seventy nine percent of Democrats, seventy nine percent of Independence, eighty three percent of Republicans, seventy nine percent of all adults are saying the same thing, and that is they oppose Iran obtaining nuclear weapons. I think the definitive poll by Robert Kahelli of Trafalgar and an Insider Advantage head
Matt Towery. They did a joint poll and the question was very pointed, what is your opinion of President Trump's position that Iran must be prevented from develop a developing a nuclear weapon by any means necessary. Seventy four point four percent said that they approve and agree with that. And we can go on to the Havid Harris poll
eighty five percent. Yeah, Tehran must never ever get the bomb. Now, Israel has taken out two of the three sites, there's one site remaining, and it seems that that site, the Bordeaux site that we keep talking about, would need American assistance to make this happen, and hence the decision that the President will have to make. And I have every confidence that the President understands he's been saying since twenty
eleven that Iran could not have a nuclear weapon. One of the more bizarre conversations to arise out of this is against maga. Donald Trump is against forever wars, You're right, so am I I'm against forever wars, and with military technology, I don't think they're ever going to be fought the same way again. But it's the same Donald Trump that took out Solomani on the tarmac and that was you know, that was done, and all the predictions of doom and
gloom and retribution. Any military effort has risk associated with it, But then you have to factor in the risk of a nuclear armed Iran, the number one state sponsor of terror, that has fired hundreds of thousands of missiles. They're firing them right now into Jerusalem as we speak. They've been firing him to heavily civilian areas, populated civilian areas like Tel Aviv, and they have sworn to wipe Israel off the map in the United States, off the map. They
have made these threats repeatedly. But it's also the same Donald Trump that wiped out the Caliphate, the same Donald Trump that took out Bagdaddy and associates. I'm not sure how Some are saying that the mag of movement is an isolationist movement, which means no involvement at all it's not. It is no way contradictory to say that this one remaining site needs to be taken out. And if it's the United States at a time when their air defense systems are down, it's the safest it's ever gonna be.
But there's always risk with any military operation. And take it out and forever end the threat of iranium Mullah's married to their sick converter die ideology, and forever remove that threat of a modern day holocaust. To me, is basic, simple common sense. Yeah, that also would be part of the Trump doctrine, and Donald Trump is it's not inconsistent if you take out those sites the way you took out Solo Mony Bagdaddy and associates, and also the Isis
Caliphate and not have a forever war. Nobody wants that. I definitely don't anyway. Senator Lindsey Graham, South Carolina is with a senator, how are you good?
Thanks so much for having me.
Let's get your take on all of this. To me, it's a window of opportunity. Their air defenses are down. The President has been clear what his policy is. They can't have a nuclear weapon. He's been saying it since twenty eleven and hundreds of times since, it seems like the moment is here.
Yeah, the forever war is started in nineteen seventy nine when the Ayatoa replaced the Shaw, they held our embassy personnel hostage. Since nineteen seventy nine, Iran has been waging war through Moses Blah and the Hoodies against Israel. They have American blood on their hands. So that's the war I'd like to end. And if you don't believe Iran would use a nuclear weapon to destroy Israel, you're not
listening to what they're saying. If you don't believe they would use a nuclear weapon to come after us to infidel you're not listening to what they say. Hey, November fourth and Iran is commonly referred to as Death to America Day. In nineteen eighty seven, they made it a holiday. That was the day they took over our embassy. We have a military for a reason, to protect our way
of life, protect our homeland, and protect our allies. You know, when my dad was drafted World War two, the term was called the duration We're going to fight and we beat the Nazis, took Berlin and took Tokyo, and we did in this war. We're not going to have ground troops and it won't last forever because we have the capability to destroy the Iranian nuclear program working with Israel fairly quickly. We're down to one site deep underground, about
a half a mile under the ground. We have technology and bombs and capability.
Israel doesn't.
It is my advice to President Trump, help Israel finish the job. Go all in to destroy the last nuclear site. If we take this program on and we don't finish it, it will be a disaster. Still I's finished the job.
I agree with you, and I actually think that the Israelis have done a spectacular job on their own. Now we have to factor in that Iran and Iran through their proxies. And I've been tot Israel a number of times as you have been there, many many times, many many times more than me. I mean, I went to one border town with Gaza at the time, and I think twenty fifteen had been hit with ten thousand rockets.
In ten years. They have withstood Huti rebel rockets, his Bola rockets, Islamic Jihad rockets, Hamas rockets, Kuds forces, Iranian Revolutionary Guards forces, helped develop the October seventh attack against Israel. They provided the weaponry for that. They've been fomenting terror,
not just in the region, but around the world. There's not a single country that wants to come to Iran's defense, and we now find ourselves with a window of opportunity to forever remove any possibility they'd have this weapon of mass destruction married to their ideology. Now, how is that any different than taking out Solomani by Dadian associates or beating the Caliphate. I don't see that as inconsistent at all.
Well, I think, yeah, you're dead right. The primary job of beating Commander in chief President the United States is to protect us our homeland from existential threats and to protect our allies, and we have no better allies than the state of disrals. Iran has nine hundred pounds of highly enriched uranium that could make about a dozen bombs if they went to the last mile. They're at sixty percent. To get to ninety percent is weeks, not years. They
have one Savinan reactor. They haven't used any of the enriched uranium to run that reactor. They get their fuel from Russia. So this is weapon grade material and large quantity. They've been doing this for decades, and their goal is to develop a nuclear weapons force to use as part of their ideology. I don't think Rocketman's going to attack America. I don't believe Putin's ambition is to destroy Israel, destroy the United States, nor I believe that about China. I
think they're mercantile. I think they're an adversary. But I believe this regime is founded on a religious ideology that makes them religious Nazis. They're being told by their version of Islam to destroy the Jewish state, to drive out the infidels, and to purify Islam. They're not elected. It's a theocracy. They mean what they say. Four presidents have said Iran can't have a nuclear weapon.
It will be Donald J.
Trump who makes that a reality period. All we need to do is help Israel finish the last site and wait and see what happens after that.
Is that in your mind, and obviously protecting our interests in the region, Is that basically the job that you want President Trump to accomplish. For example, there are other targets. I mean, most of their refineries are on this one island, and you can wipe out any ability of them in the future to make money. The Israelis could do that on their own. They don't need our help or assistance for that. Certainly they can knock out their gas power
grid and the entire country will be without power. That's another easy target because the Israelis own the sky over Iran. So you know, once the nuclear component is out of the way, I guess at that point it's going to be up to Israel what they decide to do in their conflict with Iran. And frankly, with all the weapons they've fired into Israel, I wouldn't I wouldn't put it past them to take.
It all out.
Well, so here's the question for Israel and really the world. We can destroy their infrastructure to enrich uranium. There's one site left, but as long as the regime is in power, they'll rebuild it over time, and President Trump is not going to be present forever. So the question for the world. The largest state sponsor of terrorism is Iran. Under US law, they have a policy to decimate Israel and to reshape
the entire path in a way to exclude US. Convert or die is their ideology, wouldn't it be great for the people of Iran and the world if this regime went away, and people say, well, what will come next, Here's what I'm going to tell you. The guy in charge wants to kill all the Jews. He wants to kill us. They beat a young girl of death on a bus in Iran because she didn't cover her head. I'm willing to risk it won't be any worse than that guy. So the bottom line is I hope and
pray that the Iranian people will know freedom. It will be up to them to take the rear down. But Israel will not tolerate living this way anymore. The Jews and Israel are oppressed by everybody around them. They have lived in fear, they have lived in an oppressive environment since this founding. October the seventh, children were murdered, women are raped in front of their children. They've had it, they should have it. I am tired of living this way. To our friends in Israel, do what you have to
do to be safe, and they're making us safer. The people they're fighting want to kill us two and to all these people sitting in the sands. Second guests in Trump, you have no idea what you're talking about you wouldn't know the differman of Sunni and Ashia than anything. So this is a religious deocracy. They're fanatics. They're dedicated to killing all the Jews and coming after us. They meant it when they say Israel, death of America. So I'm
hoping in praying we take their nuclear program down. Israel wants to take the regime's ability to wage war down by destroying their refineries, destroying their ability to wage war.
So be it well at that point, if the United States, in a joint military operation, helps take out this final nuclear facility, then it really comes down to the Israelis and how far they want to go. I don't think President Trump has not expressed any desire for regime change, even identified that they know where the Supreme Leader is, but they're not going to kill him. But he did say, and he has said consistently for now decades, that they can't have a nuclear weapon and that would be in
the best interests of the United States. And at that point the Israelis, I mean, after all that Iran has done to murder and rape, and you're right on October seventh, but it's an ongoing, never ending you know, missile barrage funded by Iran and their proxies.
Well, so President Trump has told the I told you attack American bases or interest, that will be the end of view. That will be regime change. If they come after our forces in the region, that will be the end of the Iahtolas. But put yourself in israel shoes for a moment. What is the right response when people lob rockets consistently at Savillean populations, They raide your country,
They murder, rape children, women, they have people hostage. What would we do if one country, if a country sent one rocket in to America, Well.
I have to go one rocket. I've been making the same argument. We would demand immediate military auction center. O. Lindsey Graham, appreciate you being with us. It's going to be an interesting week ahead, There's no doubt about it. Eight hundred nine one, Shawn. If you want to be a part of the program, right when we come back, all things simple, man, We'll check in with Bill O'Reilly. We'll get to your phone calls as well. Told free
it's eight hundred and ninety four one, Shawn. If you want to be a part of the program, I will President Trumpaco. Full coverage tonight nine Eastern on Heniday on Fox News. As we continue,