On this "Face the Nation" broadcast moderated by Margaret Brennan:
- Volodymyr Zelenskyy, president of Ukraine
- Jake Sullivan, White Home nationwide safety adviser
- Raphael Bostic, president and CEO of the Federal Reserve Financial institution of Atlanta
- Rep. Pete Aguilar, Democrat of California
Click on right here to browse full transcripts of "Face the Nation."
MARGARET BRENNAN: Good morning, and welcome to Face the Nation. I am Margaret Brennan in Washington.
In only a few moments, you'll hear our unique interview with Ukraine's President Volodymyr Zelenskyy.
Plus, we'll hear the U.S. response to what has been a essential week on the nationwide safety entrance, marked by more and more determined strikes on the a part of Russian President Vladimir Putin, as Russia's struggles of their warfare on Ukraine.
Right here at house, now we have additionally bought a brand new CBS Information ballot that reveals some disturbing indications about voters who need to contest the upcoming elections six weeks earlier than Election Day, and the have a look at the potential affect of these larger rates of interest from the Federal Reserve.
However we start with Ukraine.
Our Debora Patta has the most recent from Kyiv.
(Start VT)
DEBORA PATTA (voice-over): Staged polls in occupied cities like these, referendums amid the rubble and smash of warfare, a grotesque mockery of democracy, ballots propped up by bullets.
Election officers accompanied by armed troopers go traipsing up flights of stairs, knocking on doorways, looking for voters. Others pound the streets with loud hailers.
(WOMAN SPEAKING IN FOREIGN LANGUAGE)
DEBORA PATTA: Russia information shops have been eager to indicate enthusiastic voters in occupied Kherson. A day later, that very same location was abandoned.
Ivan Fedorov, the exiled mayor of now occupied Melitopol, calls it a farce.
IVAN FEDOROV (Exiled Mayor of Melitopol): I feel that we are able to identify Russian, it is terrorists which maintain our residents as hostage. Russians take hostage our residents now inside Melitopol.
DEBORA PATTA: The White Home regards the referendums as an indication of Vladimir Putin's weak point following crushing battlefield defeats.
(GUNSHOTS)
DEBORA PATTA: However Putin shouldn't be solely a sore loser. He is a harmful one, threatening nuclear weapons and imposing a right away call-up for navy reservists.
It sparked widespread anti-war protests at house, leading to a whole lot of arrests and the panicked exodus of younger males fleeing the nation to dodge the draft, like Sergei, caught up in a protracted line of site visitors on the Finnish border.
SERGEI (Russian Fleeing to Finland): I simply pack my bag and immediately go to Finland.
DEBORA PATTA: Lots of these caught up have by no means fought in a warfare, not to mention one which already has hardened Russian fighters on the run.
(Finish VT)
DEBORA PATTA: No person's ready with bated breath right here in Ukraine for the outcomes of these elections. It's clear Putin needs to push by a vote to annex the territories rapidly.
And that might occur as early as this week -- Margaret.
MARGARET BRENNAN: Our Debora Patta reporting from Ukraine.
Once we spoke to President Volodymyr Zelenskyy Saturday, we started with Vladimir Putin's referendum in Russian-occupied areas of Ukraine, actions meant to assist him justify annexing territory which is equal to the scale of the state of Maine. It's unlawful beneath worldwide legislation.
(Start VT)
MARGARET BRENNAN: The U.S. says they are a sham and meant to take about 15 % of your territory away.
What occurs to Ukrainians residing in these areas in the event that they reply "No" when they're requested in the event that they need to be a part of Russia?
VOLODYMYR ZELENSKYY (Ukrainian President) (by translator): The referendum can result in very tragic moments.
You began your query with a solution. That's right. These individuals who do not come to referendum, Russians can flip off their electrical energy and will not give them a possibility to reside a standard human life. They drive folks -- they throw them in prisons. They drive them to return to those pseudo- referenda.
And, additionally, additionally they introduced mobilization. They're forcing folks to combat, folks from the quickly occupied territories. I see different threats after they full -- in the event that they succeed with these referenda, the ballots have been -- had been already ready.
The Russia -- the Russian authorities can formally announce that the referendum had been accomplished, and the outcomes might be introduced. This is able to make it inconceivable, in any case, to proceed any diplomatic negotiations with the president of Russian Federation.
And he is aware of it very nicely. I've spoken about it publicly. I feel it is a very harmful sign from President Putin that tells us that Putin shouldn't be going to complete this warfare. That's what's occurring.
MARGARET BRENNAN: The Biden administration has constructed its total coverage round avoiding direct battle with Russia. As soon as this annexation occurs, does it change that dynamic?
Is Russia utilizing this as an excuse to say that it's being attacked as a result of the West is offering Ukraine with weapons, whether it is seizing Japanese Ukraine to annex it?
PRESIDENT VOLODYMYR ZELENSKYY (by translator): Sure, that is precisely so. That's right.
Look, he is aware of. He feels it, and his navy management stories to him. He is aware of that he is shedding the warfare. Within the battlefield, Ukraine has seized the initiative. He can't clarify to his society why. And he's searching for solutions to those questions.
It is seven months since Russia occupied, tried to occupy Ukraine, however they could not. And now he has to justify. He has to take steps to justify.
He says: See, let us take a look at it. I'm not afraid of Ukraine. It was a particular operation, however now it is Russia. It is our territory. Look, we carried out referenda. Now it is the West who assaults Russia. Now the West assaults our territories. We've got let the society be a part of Russia, the society that wished to be with Russia.
He has introduced the mobilization. It was once hidden. Now you see that it has been introduced publicly. For a number of months, they have been secretly mobilizing.
However now they admitted that their military shouldn't be capable of combat with Ukraine anymore.
MARGARET BRENNAN: Vladimir Putin continues to dangle the specter of nuclear weapons use. You've got known as this nuclear blackmail. Do you suppose he is bluffing proper now?
PRESIDENT VOLODYMYR ZELENSKYY (by translator): Look, perhaps yesterday, it was bluff. Now it might be a actuality.
Let's look. What's a up to date use of nuclear weapons or nuclear blackmail? He focused and occupied our nuclear energy plant within the metropolis of Enerhodar. He continues his blackmail associated to us exporting electrical energy to Europe. A number of days in the past, they began taking pictures at one other nuclear energy plant. The nuclear plant misplaced all of the home windows and doorways, et cetera.
So, he needs to scare the entire world. These are the primary steps of his nuclear blackmail. I do not suppose he is bluffing. I feel the world is deterring it and containing this risk. We have to preserve placing stress on him and never permit him to proceed.
MARGARET BRENNAN: President Biden has mentioned extra sanctions are coming.
PRESIDENT VOLODYMYR ZELENSKYY (by translator): I feel that there is sanctions that should be carried out in direction of the very finish fully.
If we minimize Russian banks from SWIFT, we have to minimize all Russian banks from SWIFT. If we speak about an embargo for vitality, we'd like to not search for compromises, or we have to ensure that this embargo might be working and all the costs can be carried out in keeping with the embargo, as a result of the income from these imports help the Russian military and fund the warfare.
America may present its management place and acknowledge Russia as a sponsor of terrorism. I perceive there might be implications. These implications will make diplomatic negotiations inconceivable. Nonetheless, they're terrorists, and we can't allow them to do it out of worry. They won't give up.
We have to preserve making use of stress. They're terrorists. They do not have honor. They can't preserve their phrase. They don't kill navy personnel. They rape, torture and kill civilians.
We discovered an enormous mass grave of half-a-thousand folks. At present, I obtained extra info. The journalists are on their manner. They discovered two extra mass graves, huge graves with a whole lot of individuals additionally. And we're speaking about a little bit city of Izyum.
Are you aware there are two extra mass graves in a small city? That is what is going on on. The sanctions have to proceed. The sanctions may have political affect, in addition to monetary affect.
MARGARET BRENNAN: The U.S. has launched intelligence about Russia's filtration facilities that it's placing Ukrainians into, and estimate that a whole lot of hundreds of Ukrainian kids are being taken to Russia.
Does forcibly separating children from their households represent genocide?
PRESIDENT VOLODYMYR ZELENSKYY (by translator): We've got all of the details about filtration camps, isolation camps. Individuals are being tortured with numerous means.
They apply stress. They torture with electrical present and so forth. And aside from that, there's deportation, I am unable to say actual numbers. I do not need to lie. I need you to know all the reality. I am unable to say or verify that a whole lot of hundreds of youngsters have been deported, as a result of households have been separated.
However it's completely true that there are literally thousands of these kids. We've got confirmed that.
MARGARET BRENNAN: Offensive operations are costlier than defensive operations. The White Home is asking Congress for $12 billion extra to offer to Ukraine.
What do you want this cash for? What is important proper now?
PRESIDENT VOLODYMYR ZELENSKYY (by translator): Hundreds of individuals have been killed, raped, tortured.
That is why we'd like this assist to deoccupy our territories to ensure that extra folks survive. I do not suppose that that is the very best worth on the earth to save lots of hundreds of lives.
We're very grateful for HIMARS and different MLRSes that give us a capability to conduct our offensive. Our military seize the initiative, cuts the technical capabilities of Russia. Second, artillery. Artillery helps us to save lots of the lives of our warriors, our fighters. They want a possibility to get provides of tanks from the USA, in addition to Europe.
If the U.S. will be capable of present its management and can be capable of get the tanks, then the Germany -- then Germany and different European nations will comply with. I feel, if we get tanks from the U.S., European allies may even assist us to deoccupy Ukrainian cities with tanks. Air protection programs, we completely want the USA to indicate management and provides Ukraine the air protection programs.
I need to thank President Biden for a constructive choice that has been already made. And, to the U.S. Congress, we obtained NASAMS. It is the air protection programs. However, imagine me, it is not even almost sufficient to cowl the civilian infrastructure, colleges, hospitals, universities, properties of Ukrainians.
MARGARET BRENNAN: Can there be stability in Europe if Vladimir Putin stays in energy?
PRESIDENT VOLODYMYR ZELENSKYY (by translator): No.
MARGARET BRENNAN: No?
PRESIDENT VOLODYMYR ZELENSKYY (by translator): I haven't got something so as to add. My opinion isn't any.
We've got noticed this through the years. We do not see stability.
MARGARET BRENNAN: Mr. President, thanks on your time immediately.
I do need to ask earlier than I allow you to go, you may have stored Ukraine united throughout this warfare. Have you ever seen proof that Vladimir Putin will now come and goal you on this second of desperation?
PRESIDENT VOLODYMYR ZELENSKYY (by translator): You might be very proper in saying that we're united. We've got grow to be much more united now than ever.
I am one of many targets, after all. It goes with out saying. It is not due to my character, simply because I am -- as a result of the president is a frontrunner of their nation.
MARGARET BRENNAN: Mr. President, thanks on your time.
And good luck to you, sir.
PRESIDENT VOLODYMYR ZELENSKYY (by translator): Thanks very a lot. We'll want it. We want you peace and every thing.
Thanks very a lot on your help, the USA.
(Finish VT)
MARGARET BRENNAN: And Face the Nation might be again in a single minute. Stick with us.
(ANNOUNCEMENTS)
MARGARET BRENNAN: We flip now to White Home Nationwide Safety Adviser Jake Sullivan.
Good morning to you, Jake. Thanks for becoming a member of us.
JAKE SULLIVAN (U.S. Nationwide Safety Adviser): Thanks for having me.
MARGARET BRENNAN: President Zelenskyy instructed us that, if this annexation occurs, it'll make diplomatic talks with Vladimir Putin inconceivable.
They want artillery in Ukraine, he says, extra air protection programs and tanks. Will they get it? And the way vital of an escalation is that this?
JAKE SULLIVAN: Effectively, Margaret, not solely will they get it, however they have been getting it.
America at this level alone has offered greater than $15 billion in weapons, and that is included air protection programs, a whole lot of artillery items, a whole lot of hundreds, if not hundreds of thousands of rounds of artillery. And now we have facilitated the switch of tanks from NATO allies who've the Soviet period tanks that the Ukrainians have skilled on.
We'll proceed to do all of that. And what Putin has performed shouldn't be precisely an indication of energy or confidence. Frankly, it is a signal that they are struggling badly on the Russian facet. And we'll assist the Ukrainians be capable of reap the benefits of the positive aspects they've made and to proceed to push again in opposition to the Russian forces which might be brutally occupying parts of their nation.
MARGARET BRENNAN: Yesterday, Putin changed one of many prime logistics generals with a person who's often known as the Butcher of Mariupol.
Are we seeing the start of the collapse of the Russian military?
JAKE SULLIVAN: I feel it is too quickly to make complete predictions like that.
I feel what we're seeing are indicators of unbelievable wrestle among the many Russians. You've got bought low morale, the place the troopers do not need to combat. And who can blame them, as a result of they need no a part of Putin's warfare of conquest of their neighboring nation. You've got bought Russia having depleted its shops of precision-guided munitions.
You've got bought Russia disorganized and shedding territory to a succesful Ukrainian drive. And you have an enormous quantity of infighting among the many Russian navy management, and now the blame sport has began, to incorporate these replacements.
So, Russia is struggling. However Russia nonetheless stays a harmful foe and able to nice brutality, as we have seen with these mass graves outdoors of Izyum. So, we proceed to take that risk significantly. And we proceed to see our obligation being offering Ukraine all that it wants to have the ability to successfully defend itself and defend its nation and defend its freedom.
That is what we're intent on doing. And we aren't taking our eye off the ball.
MARGARET BRENNAN: Vladimir Putin will perform this annexation of jap Ukraine inside the subsequent few days.
If Russia is increasing its nuclear umbrella over this a part of the nation, does that put the U.S. in additional direct battle with Russia? And does a nuclear weapon getting used there put Russia in battle immediately with the U.S. and NATO?
JAKE SULLIVAN: We've got been crystal clear, as much as and together with President Biden, that we are going to not acknowledge the sham referenda. They on no account characterize the need of the Ukrainian folks.
And we'll deal with this territory for what it's, Ukrainian territory, not Russian territory. And we'll proceed to help the Ukrainians as they search to deoccupy this territory. So, we have been clear. We're not going to cease or decelerate our help to the Ukrainians, it doesn't matter what Putin tries to do with these faux elections and pretend referenda and annexation.
Now, on the subject of the query of nuclear use, President Putin's been waving across the nuclear card at numerous factors by this battle. The previous couple of days usually are not the primary time.
And we have all the time taken it significantly. We have...
MARGARET BRENNAN: However he hasn't been as cornered as he's now.
JAKE SULLIVAN: It is true. And it's a matter that now we have to take lethal significantly, as a result of it's a matter of paramount seriousness, the doable use of nuclear weapons for the primary time for the reason that Second World Struggle.
We've got communicated immediately, privately, at very excessive ranges to the Kremlin that any use of nuclear weapons might be met with catastrophic penalties for Russia, that the USA and our allies will reply decisively. And now we have been clear and particular about what that can entail.
We've got, in public, been equally clear, as a matter of precept, that the USA will reply decisively if Russia makes use of nuclear weapons and that we are going to proceed to help Ukraine in its efforts to defend its nation and defend its democracy.
MARGARET BRENNAN: Russia has been speaking about this nuclear energy plant, quite than nuclear weapons, simply inside the previous 24 hours.
The place does that fall? Is that this an escalating risk?
JAKE SULLIVAN: So, on your viewers, there's a nuclear energy plant that's in Russian-occupied parts of Ukraine.
It has been put into chilly shutdown to make it much less seemingly that there is some type of catastrophic incident on the plant. It's really nonetheless being operated by the Ukrainian operators, who're primarily at gunpoint from the Russian occupying forces. And the Russians have been constantly implying that there could also be some type of accident at this plant.
We have been working with the Worldwide Atomic Vitality Company and with the Ukrainian vitality regulators to attempt to ensure that there isn't any risk posed by a meltdown or one thing else from the plant.
MARGARET BRENNAN: Jake, you are a busy man watching the world proper now. There's so much I need to ask you.
However I've to ask you about Iran and these protests led by girls after the demise of this 22-year-old girl who did not have her hair lined correctly, within the view of the morality police. She died.
How vital is that this? And is it making you reassess the give you placed on the desk to elevate sanctions on Iran in regard to its nuclear program?
JAKE SULLIVAN: Effectively, first, Margaret, the truth that we're in negotiations with Iran on its nuclear program is on no account impacting our willingness and our vehemence in talking out about what is occurring on the streets of Iran.
We've got, the truth is, taken tangible steps to sanction these morality police...
MARGARET BRENNAN: Proper.
JAKE SULLIVAN: ... who precipitated the demise of Mahsa Amini.
We have taken steps to make it simpler for Iranians to have the ability to get entry to the Web and entry to communications applied sciences that can permit them to speak to at least one one other and to speak to the world.
So, from our perspective, we'll do all that we are able to to help the courageous folks, the courageous girls of Iran, as they get up for themselves.
And...
MARGARET BRENNAN: Proper. I used to be asking you, although, in regards to the provide to elevate sanctions off of Iran in regard to its nuclear program, as a result of that may permit for the regime to have a monetary lifeline.
JAKE SULLIVAN: Effectively, I feel it is necessary for everybody to know that, on the top of the Chilly Struggle, as Ronald Reagan was calling the Soviet Union the evil empire...
MARGARET BRENNAN: Proper, the arms management.
JAKE SULLIVAN: ... he was additionally negotiating an arms management settlement with Russia.
MARGARET BRENNAN: Completely.
JAKE SULLIVAN: So, that is -- that's what we're speaking about right here. We're speaking about diplomacy to stop Iran from ever getting a nuclear weapon.
MARGARET BRENNAN: OK.
JAKE SULLIVAN: If we are able to reach that effort -- and we're decided to reach that effort -- the world, America and our allies might be safer.
And that won't cease us in any manner from pushing again and talking out on Iran's brutal repression of its residents and its girls. We will and can do each.
MARGARET BRENNAN: OK. So, I perceive the provide continues to be on the desk. The technique hasn't modified.
Jake, thanks very a lot on your time.
We'll be proper again with much more Face the Nation. Stick with us.
(ANNOUNCEMENTS)
MARGARET BRENNAN: Our September CBS Information Battleground Tracker exhibits the race for management of Congress has tightened but once more.
As of immediately, Republican stand to win 223 seats. That's 5 greater than they should take management of the Home. However that quantity is inside the estimate's margin of error, which is plus or minus 13 seats. The GOP edge has been shrinking since July.
We may have extra from our new ballot in our subsequent half-hour, so stick with us.
(ANNOUNCEMENTS)
MARGARET BRENNAN: We might be proper again with much more Face the Nation.
Stick with us.
(ANNOUNCEMENTS)
MARGARET BRENNAN: Welcome again to FACE THE NATION.
For a better have a look at our CBS Information battleground tracker ballot, we're joined by CBS Information elections and surveys director Anthony Salvanto.
Anthony, all the time good to have you ever right here.
ANTHONY SALVANTO: Thanks for having me.
MARGARET BRENNAN: And you've got been very busy as we get nearer to those midterms. And also you examined plenty of very huge concepts. What are voters telling you they suppose is at stake?
ANTHONY SALVANTO: Effectively, the very first thing is, it provides you a way of the stakes right here within the minds of voters, which they are saying are actually giant. And, particularly, 68 % say their rights and freedoms are doubtlessly at stake on this election. And, for context, that is much more than, say, issues like their funds and their monetary well-being is at stake right here.
MARGARET BRENNAN: Wow.
ANTHONY SALVANTO: Now, look, there's all the time, in each election, the campaigns will say, that is a very powerful election ever.
MARGARET BRENNAN: Proper.
ANTHONY SALVANTO: So, we need to - so we step again and say, OK, be particular. What do you suppose will occur have been one facet or the opposite to win? And one factor that stands out is, folks suppose that if the Republicans take management of Congress, that girls, by three to at least one, may have fewer rights and freedoms than they at present do than would have extra. And a few of that's associated to views on abortion, which we'll get to in a second. There's additionally -- there's different teams that stand out right here. For instance, LGBTIQ people voters suppose may have fewer rights if the Republicans have been to win.
Now, the opposite a part of this, although, is tied to views on democracy, which lots of people fear about proper now. And that comes out in a few of these findings, too.
MARGARET BRENNAN: And that is -- election are central to democracy, so what's it that individuals see in danger right here if you ask that?
ANTHONY SALVANTO: So, three-quarters of individuals proceed to say they suppose democracy is beneath risk. That is primary. After which, to your level about elections, we requested folks, as a result of there's a lot context right here, persons are nonetheless speaking about election denialism, nonetheless arguing about what occurred in 2020. So, OK, what occurs in case your facet loses this time? Republicans, what occurs if Democrats win a state or a district, and vice versa? And we discovered a 3rd of Republicans and half of MAGA Republicans particularly, and that just below one in 5 Democrats mentioned their occasion needs to be ready to problem states and districts that they lose. And that is --
MARGARET BRENNAN: A 3rd of Republicans?
ANTHONY SALVANTO: It is a third of Republicans. And it is even larger for MAGA Republicans, sure.
MARGARET BRENNAN: And the election hasn't occurred but.
ANTHONY SALVANTO: And it hasn't occurred but. So --
MARGARET BRENNAN: However it exhibits a mistrust within the establishment itself.
ANTHONY SALVANTO: Completely. And I feel that is actually the essential level. If now we have this mistrust within the course of, in the way in which that we adjudicate our variations right here getting into earlier than it is even settled, that is a part of what's beneath -- folks see that and so they form of say --
MARGARET BRENNAN: That is the entire ballgame on the subject of democracy itself.
ANTHONY SALVANTO: Sure, it truly is.
MARGARET BRENNAN: I do know you additionally -- we referenced the truth that on the subject of how shut this race might be, it is narrowing right here. Republicans have a slim benefit.
ANTHONY SALVANTO: It's. A few of that relates -- Loads of that relates for Democrats to the abortion situation. So, let me begin with that as a result of it is also very a lot what the Democrats need this race to be about partly. Democrats have a rising lead amongst individuals who say abortion is a very powerful situation. And, specifically, for ladies who need abortion to be authorized, it is a very powerful factor. It is extra necessary than inflation. It is extra necessary than the financial system. And it is a deal-breaker. They should have that place in a candidate to vote for them.
In contrast, let me flip to the Republicans for a second. They proceed to have their lead on the financial system. It hasn't grown. It is steady. And there is loads of voters on the market who suppose they are not speaking about it sufficient. However the different factor they type of need this election to be about is immigration, which we examined on this case. There is a huge a part of the Republican base, virtually 9 in 10, 87 %, who like the thought of transferring migrants from border areas into Democratic-leaning areas.
MARGARET BRENNAN: Wow.
ANTHONY SALVANTO: Why is that necessary with the bottom? Effectively, to the extent that it is a turnout election, it is necessary to encourage your base. And, OK, Republicans actually like that. It is way more blended with the remainder of the general public. However they particularly prefer it for one motive, that they suppose it calls consideration to the issue. And to the extent that it is placing that extra on the radar, it's for independents, for different Republican voters. And, once more, again to the thought of, what is that this election going to be about.
MARGARET BRENNAN: So, we're within the ultimate weeks. What is the closing argument?
ANTHONY SALVANTO: I feel two issues. One is, you are going to hear lots of speak about democracy, like we mentioned. One is you are going to see this backwards and forwards of, what is that this about. Is it abortion rights, immigration, the financial system.
However the different a part of it's, there's half of every occasion's voters about that see the opposite facet, not as political opposition, however as enemies. And it is a little bit bit sobering to see that. However you need to, out from that, suppose, what occurs when you view the opposite facet as anyone you may't work with, that is a risk to your lifestyle?
MARGARET BRENNAN: Proper.
ANTHONY SALVANTO: In some methods it justifies any motion. It justifies issues that you just would possibly say or do that you just would not in any other case when you nonetheless believed within the system. And I feel that, once more, it is tough to say, and we must always emphasize it is not everybody, however oftentimes these people are essentially the most ideological, they've the loudest voices and so they actually drive the narrative so much. And that is very a lot what you are going to see as a result of then the events begin to say, nicely, these folks vote. These persons are going to prove. So, when you see the campaigns speaking about why the opposite facet is dangerous, and lots of voters say that is what the campaigns are principally speaking about why the opposite facet is dangerous, that type of runs counter to what you normally see the place campaigns are speaking about, what can we do for you.
MARGARET BRENNAN: Proper. The affirmative argument.
ANTHONY SALVANTO: Sure.
MARGARET BRENNAN: Anthony, some actually sobering perspective right here. Thanks for all of your work on this.
ANTHONY SALVANTO: Thanks, Margaret.
MARGARET BRENNAN: We'll be proper again.
(ANNOUNCEMENTS)
MARGARET BRENNAN: Monetary markets flashed warning indicators final week of rising financial uncertainty.
CBS Information senior nationwide correspondent Mark Strassmann stories from Atlanta.
(BEGIN VT)
MARK STRASSMANN (voice over): Inflation stubbornly above 8 %. The Dow ending this week beneath 30,000. Vanished, almost two years of positive aspects. Rates of interest up three factors in six months. And worse, we're all flying blind right here.
JEROME POWELL (Federal Reserve Chairman): Nobody is aware of with any certainty the place the financial system might be a 12 months or extra from now.
MARK STRASSMANN: That uncertainty is now hitting us the place we reside.
WOMAN: I do like these cupboards.
MARK STRASSMANN: In America's worsening housing crunch. Over that two-year feeding frenzy to overpay, many patrons shudder at mortgage charges above 6 %, the very best in 14 years.
GLENN KELMAN (Redfin CEO): What's much more vital is how a lot sellers are pulling again. If you happen to borrowed cash at 3 % to purchase a home, you are by no means going to depart.
MARK STRASSMANN: One other situation, so-called shelter inflation. Surging house costs and rents racing quicker than wages.
MARK ZANDI, (Moody's Analytics Chief Economist): You are going to be feeling this. It is not only one a part of the nation, it is virtually all components of the nation.
MARK STRASSMANN: Moody's Analytics says greater than half of America's largest regional markets are considerably overvalued by 25 % or extra. 2 hundred and ten out of 413 markets, many pandemic increase cities.
Moody's primary, Boise. Dwelling costs 72 % too excessive. Different overvalued areas, Austin, Charlotte, Las Vegas, and Phoenix.
MARK ZANDI: I count on nationwide home costs nationwide, , throughout all these markets, to most likely fall about 10 % peak to trough, , over the following 12 months or two.
MARK STRASSMANN (on digital camera): Housing is notoriously cyclical. What goes up should come down.
MARK STRASSMANN (voice over): In a recession, count on the legislation of gravity right here to kick in with a vengeance. Moody's predicts house worth declines may double.
For now, few specialists predict a housing crash, a plunge in house values as deep and painful as within the Nice Recession. However in a lot of America, reasonably priced housing's an ongoing disaster. Many specialists say that ought to enhance slowly if the Fed can nudge provide and demand right into a more healthy place and confidence within the financial system can discover a new house of its personal.
GLENN KELMAN: The gross sales quantity goes to be low. Costs are going to return down some. However the backside is not going to fall out of the market.
(END VT)
MARGARET BRENNAN: That is Mark Strassmann reporting from Atlanta.
And we flip now to the president of the Federal Reserve Financial institution of Atlanta, Raphael Bostic.
Good morning to you, sir. It is good to have you ever again.
I need to get your perspective. We all know inventory market shouldn't be the financial system, however it's a forward-looking indicator. And it is displaying some concern proper now.
World wide, central banks try to get management of inflation. The Fed has already raised charges 5 occasions this 12 months. Why is not inflation coming down?
RAPHAEL BOSTIC (Atlanta Federal Reserve President): Effectively, initially, good morning, Margaret. It is actually good to see you.
And, , inflation is excessive. It is too excessive. And we actually have to do all that we are able to to make it come down. And when you concentrate on its supply, it is as a result of now we have very excessive demand, now we have not sufficient provide. And so long as you may have that hole, costs are going to be feeling upward stress. So we have to slim that hole.
And what we have been hoping would occur is that we would see some motion on the availability facet, to maneuver the availability up in order that there wasn't a lot of a - of an public sale on items which might be within the market. However that hasn't occurred. And that basically has meant that now we have needed to flip to our insurance policies to attempt to take demand down and cut back its stage.
And I feel lots of what you noticed within the - within the lead-in piece right here is that that demand is beginning to shrink. And, finally, that can begin to pay dividends once we take into consideration inflation ranges.
MARGARET BRENNAN: So, these larger rates of interest, for companies it, , it makes it costlier for them to get loans. For customers it makes it costlier, as we have been speaking about, to get mortgages, bank card debt, loans. That is the way it form of cools issues off a little bit bit.
We have already had two back-to-back quarters of adverse GDP development, which might put us in that class of recession. How vital of a pullback are you anticipating right here?
RAPHAEL BOSTIC: Effectively, initially, I feel that the GDP quantity is a technique to consider the financial efficiency, however many others would recommend that the financial system has lots of constructive momentum. We're nonetheless creating a lot of jobs on a month-to-month foundation. And so I really suppose that there's some potential for the financial system to soak up our actions and gradual in a - in a comparatively orderly manner.
Look, we have to have slowdown. There isn't any query about that. However I do suppose that we'll do all that we are able to on the Federal Reserve to keep away from deep, deep ache. And I feel there are some situations the place that is more likely to occur.
MARGARET BRENNAN: Deep, deep ache or that you would be able to keep away from the deep, deep ache?
RAPHAEL BOSTIC: Oh, that we are able to keep away from the ache. Thanks for that. Sorry.
MARGARET BRENNAN: Allen Blinder (ph), the previous vice chair of the Federal Reserve, wrote a bit in "The Journal" this week and he mentioned, the possibilities of a softish touchdown, primarily based on historical past, are nicely beneath 50 % however above zero. What are the chances right here that it is a mushy touchdown?
RAPHAEL BOSTIC: Effectively, I am not an odds individual. Individuals who know me know I do not prefer to gamble as a result of I hate to lose cash. However I'll inform you, that is one thing that - it will be arduous. It is not going to be simple. There'll seemingly be some job losses. However I feel when you look over the historic historical past right here and our financial experiences, there is a actually good likelihood that if now we have job losses, it will be smaller than what we have seen in different conditions. And that is what I am banking on.
You already know, I talked to enterprise leaders and other people in communities throughout the southeast. They're involved, however they do nonetheless really feel that there is a approach to get to 2 % when it comes to inflation that can nonetheless go away them in place and go away our financial system in a spot the place it's poised to develop and be resilient.
MARGARET BRENNAN: So you are still sticking with 2 %?
RAPHAEL BOSTIC: That is our goal. We're - we've not modified my view. I have never modified my view on that. And I will preserve working to ensure that inflation begins to maneuver in that path as quickly as doable.
MARGARET BRENNAN: So in the beginning of June, Jamie Dimon, who's the CEO of JP Morgan, predicted an financial hurricane. This week he was earlier than Congress and he mentioned among the challenges dealing with the U.S. are persistent inflation, shocks from Russia's warfare in Ukraine, and rising oil costs. You'll be able to't management a few of these issues. Are we within the eye of this storm? Is that this the hurricane?
RAPHAEL BOSTIC: So, I do not know if it is a hurricane. Look, there are many issues which have occurred during the last a number of months that basically have been sudden and have made our job harder. You already know, the warfare in Ukraine undoubtedly disrupted provide chains and I feel set us again when it comes to our restoration by many months. And in order that's - that is actual. However there are additionally some constructive issues taking place.
Now, simply final week we averted the rail strike. I feel that was a really constructive factor. And we're nonetheless listening to, as I speak to companies, that they aren't anticipating that they're going to have to put off folks very quickly. And so now we have momentum. And we must always not lose sight of that as we begin to see demand come down and us get inflation beneath management.
MARGARET BRENNAN: So, inform me about that since you have a look at the American south. We simply did this CBS Information polling to get political opinions, and we're seeing folks within the state of Georgia have a rosier view of the financial system than folks nationwide. So, 55 % of Georgia voters describe the financial system to us nearly as good. Nationwide, solely 28 % say that. So, that is notion. What's actuality? And what's taking place within the south that is not mirrored in the remainder of the nation?
RAPHAEL BOSTIC: Effectively, I am unable to communicate for the remainder of the nation. What I'll inform you is, right here in Atlanta, there may be nonetheless appreciable job development. Companies are saying that they're seeing lots of financial potential. And that's shaping, I imagine, the willingness to speculate sooner or later.
My expectation is that, as we transfer alongside and we begin to get inflation extra beneath management, that viewpoint will grow to be extra generalized throughout the nation and other people will be capable of look over longer horizons and see that there is potential on the market.
So, , I perceive we have lots of uncertainty now. The scenario in Russia that you just spent the primary a part of this present on has bought everybody on edge. However we do know that some bottlenecks are beginning to ease. And I am hopeful that over the following a number of months we'll begin to see that hole between the excessive demand and that decrease provide slim considerably, which is able to then translate into inflation transferring nearer to our goal.
MARGARET BRENNAN: You may have job development, you mentioned, within the south. Do you may have sufficient employees?
RAPHAEL BOSTIC: Effectively, we do have the problem of a good labor drive. Everybody I speak to says, look, it is more durable to seek out employees than it has -- than it was two years in the past. However others --
MARGARET BRENNAN: Is the answer immigration?
RAPHAEL BOSTIC: Effectively, immigration may contribute to that. However what I'd say is, our enterprise leaders have mentioned, it is not as arduous immediately because it was a month in the past. So, they're beginning to see these challenges ease up.
However, look, now we have - now we have a lot of complexity in our labor market. We all know inflation is down. We all know that households have performed lots of rethinking about whether or not they want two earners or whether or not they need to preserve somebody house and never -- now we have challenges when it comes to little one care. There's lots of churn in our labor markets that we're going to have to watch.
And, , I am grateful, my staff, we have been doing lots of good analysis on this and we have recognized some locations to give attention to that can give us clue as to the extent to which labor markets are easing.
MARGARET BRENNAN: We'll be awaiting that. Thanks on your time immediately.
We'll be again in a second.
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MARGARET BRENNAN: We flip now to January sixth and the congressional investigation into the assault on the Capitol.
Becoming a member of us is California Democratic congressman Pete Aguilar, who's on that committee and joins us from Los Angeles.
Good morning to you.
REP. PETE AGUILAR (D-CA): Good morning, Margaret.
MARGARET BRENNAN: We had a ballot, as you will have heard, out that exhibits one- third of Republicans and half of self-described MAGA Republicans suppose that the occasion ought to plan to problem states and districts that Democrats win. That is in November. Seventeen % of Democrats really feel they need to problem if the GOP wins. What does that say to you about belief in elections and the danger of political violence like we noticed on January sixth?
PETE AGUILAR: It tells me that now we have extra work to do, nevertheless it's deeply alarming that we had a former occupant of the White Home who any time end result went a special manner than he wished known as it faux information. And he sought to undermine our democratic establishments time and time once more. So, it is not a lot of a shock that a few of that has seeped into the American public. However our job is to ensure that we shield democracy and do every thing we are able to to stop that from taking place.
MARGARET BRENNAN: So you may have this primary public listening to since July. It is going to be this Wednesday.
Politico is reporting that Vice President Mike Pence's actions are a spotlight of that listening to. Final night time at a pageant in Texas Congresswoman Cheney mentioned that the committee's nonetheless in discussions with Mike Pence's counsel, however she's optimistic he has an obligation to look. The place do you fall on that? Do you should subpoena him or is that written testimony that you just'd settle for?
PETE AGUILAR: Effectively, I feel it is necessary that we hear from the vice chairman. However the committee's work continues. We've not made a willpower on the place we go along with the vice chairman particularly. These proceed to be evolving discussions. And if there's something to announce, I am positive the chairman will announce that.
However I feel what's extra necessary is that this listening to that now we have arising on Wednesday might be a continuation of what we heard in June and July, which was that the president performed a direct position in attempting to undermine our democratic establishments and forestall a peaceable switch of energy.
MARGARET BRENNAN: So the main focus shouldn't be particularly on the vice chairman?
PETE AGUILAR: I am not going to get into the content material of the listening to that we'll have on Wednesday.
MARGARET BRENNAN: OK.
PETE AGUILAR There are new particulars that now we have discovered broadly in regards to the investigation, and we plan to share a few of these this week.
MARGARET BRENNAN: To that time, Congresswoman Cheney mentioned there are 800,000 items of communications the committee has obtained from the Secret Service. What's in these paperwork? How materials is it?
PETE AGUILAR These are nonetheless not the textual content messages that have been mentioned earlier than, however these appear to be communications internally amongst workers members. So, there's lots of info that our investigative staff has been going by. We'll element, , all of it on Wednesday. However it's necessary that they're offering the knowledge and that it continues to assist in our investigative work. Perceive what precisely was taking place on January fifth and January sixth as this rally was taking place and because the president was directing the mob to go to the Capitol.
MARGARET BRENNAN: So, the lead Secret Service officer on the then president's element, Tony Ornato, has been in query. He retired over the summer time. Are you able to communicate to him now?
PETE AGUILAR: Effectively, that is a dialog for him and his lawyer. We stay deeply wanting to listen to from him. The Secret Service indicated that they'd make him accessible previous to his retirement. After which he coincidentally went out and retired.
So, we really feel that it is necessary. He has spoken to us. However, clearly, we have heard new particulars since his testimony that we really feel are necessary to ask. So, he, and others, stay an necessary a part of our investigative work that continues.
MARGARET BRENNAN: Do you imply to recommend that he retired so he would not should testify?
PETE AGUILAR: I am simply saying that the timeline is the timeline. We have been in conversations to listen to from him after which he retired. So, as a non-public citizen, we'll proceed to work together with his non-public lawyer to see if it -- to see if he'll come earlier than the committee and share further testimony with us.
MARGARET BRENNAN: So, you talked about on the prime how essential the committee's work is. And critics have pointed to the truth that you took a break over the summer time as a counterpoint to that, saying it could not be that speedy when you went away for six weeks. How do you reply to that?
PETE AGUILAR: Effectively, I can guarantee you that -- and anybody wanting on the calendar for the 9 of us on the choose committee would know that we did not go away. The investigative staff continued their work. They continued wanting by the paperwork that you just referenced earlier. We continued to research, take depositions and testimony from key witnesses. All of these occurred. They only occurred out of public view.
So, we stay up for persevering with this dialogue over 20 hours of hearings that now we have had thus far. We stay up for the listening to this week. However finally, that is about defending our democracy. And the ultimate report sooner or later may have the committee's stamp of what we do subsequent. And what occurred, the place we go from right here and the way valuable democracy is and that it is price preventing for.
MARGARET BRENNAN: Congressman Aguilar, we'll be watching this week. Thanks on your time immediately.
Our CBS Information protection of the January sixth investigation listening to begins at 1:00 p.m. Japanese. You'll be able to see it on our broadcast or streaming community on Wednesday.
We might be proper again.
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MARGARET BRENNAN: That is it for us immediately. Thanks for watching. Since we ran out of time in our interview, Jake Sullivan did need to make clear that on the subject of Iran, the Biden administration nonetheless believes in nuclear diplomacy, however shouldn't be near a deal at this level. And we'll see how issues unfold.
Till subsequent week, for FACE THE NATION, I am Margaret Brennan.
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