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If you want to be a part of the program, um, if you're following Jerome Powell, the Fed chair, uh, in any way, shape, manner, or form, it is clear he does not like Donald Trump.
I th uh 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.
Uh and uh it's getting a little bit frustrating to me.
Um, because what he is now his his incredible reluctance and resistance to do anything that would be wise and smart to help the economy, uh, it justifies logic and common sense because every measure Trump is arguing that the 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, went uh, you know, goes on and on repeating, regurgitating things that just never have come to fruition.
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, uh, you know, every prediction they made about what tariffs would do to the economy and higher inflation and massive unemployment, none of this has come true.
None of it.
The CPI measure of inflation, you know, is you know, for the 12 months ending, you know, we we're now at the lowest levels we've had in four years.
Consumer confidence has never been higher.
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 gonna give up their three percent 30-year fixed rate mortgage uh to get a seven or seven and a half percent 30-year fixed rate mortgage.
And it and you can't blame people for not wanting to do that.
Here's 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 price 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.
Joining us now to respond, Joe Lavornia is with us, uh Treasury economist.
Uh 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.
Uh, what's your reaction to me?
It's personal and political.
Your thoughts.
Oh, hi, Sean.
Thanks uh very much for having me.
Um, as uh as Counselor to Secretary Bessant, uh, we don't want to weigh in on uh on on monetary policy, but you did raise a couple of very key points, and that is uh under President Trump inflation, which was one of his primary uh goals on the campaign trail.
He's he has delivered in spades.
Uh inflation, as you correctly said, has come down quite dramatically and uh and is going to continue to drop in all likelihood because of uh what is 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, Sean, but the White House put out earlier in the week, are growing at the fastest rate uh for uh uh initial term.
I'm assuming them treating this uh Trump term as basically a new term because of the gap in between, it's the fastest uh five-month increase in real blue-collar wages we've had on record, and the data go back sixty years.
So there's a lot of good stuff there, and um the president deserves credit for it.
You know, what I'm having a hard time understanding, and it seems personal if you look at the comments of 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, it can't come any it can't come soon enough.
I think the frustrating thing is we have to wait that long, and and maybe Scott Besson, 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.
We're at two 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 and frankly, the president is just you know apoplectic about it, and he stuck with this guy until May of next year.
The uh, you know, it's when when you talk about inflation and uh and you it was at a 45-year high under uh under President Biden and the tariffs and how inflation has come down.
I mean, it it's remarkable how the professional analytical community, the professional forecasters have gotten the inflation wrong.
So what I can tell you is that well 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 tariffs and what we've seen, of course, is the tariffs being absorbed in the margins of the foreign sellers, and it's happened as inflation's actually come down, which is uh which is very positive.
Uh economy, Sean, as you know, is extraordinarily resilient, and uh with uh the bill uh 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 the Treasury, you know, we by the way, do you did you did see the the Atlanta Fed, what a two week and a half, two weeks ago?
You know, they have projected uh 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 four it's at four, maybe a little bit less, it bounces around.
But but Sean, here's the thing, as we talk about interest rates and debt and all these other things.
You know, the Congressional Budget Office, uh, I believe is just much too pessimistic a forecast.
They're assuming the next ten years the economy grows under two percent.
Uh if we're gonna start growing at 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's accelerated.
We have an II an AI spending boom.
Uh, this bill coming through is gonna lift CapEx in an even more meaningful way.
Uh, we're gonna generate faster growth, which is give us faster revenues, and this is an important point because I see so much financial press that just talks about these big large deficits with with no admission that the assumption that the assumed growth rate is too pessimistic.
Um and it's just sort of like the fear sells.
Well, the Congressional Budget Office does not exactly have the best track record.
You know, one one thing that it seems nobody is factoring in is uh, 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 they they always factor that in as a decrease.
For example, in Reagan's term, revenues to the federal government doubled.
Uh 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 the president you know 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 confidence is up dramatically.
We have low inflation and the only thing that is that that is showing signs of trouble is directly related to the Fed's interest rate policy and and that is home building.
And there's an easy explanation for that.
Who's going to give up a would you give up a three year I'm I'm sorry a 30 year three percent mortgage to get into a new home at at you know double the the interest rate you'd be doubling your payment it's insane.
Right now sure now I understand your point Sean, but you know here's the thing let's take tenure yields for a minute because if I spent most of my career has been in the private sector and and the good news and and kudos to Secretary Besson and that is the we've gotten interest rates, you know interest rates the market was very careful uh right around Liberation Day that and shortly thereafter the tenure yields will 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 and the good news is market interest rates can still fall with President Trump's 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 rates 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 the low interest rate mortgage that they locked in years ago.
There's one other thing that we're not factoring in here and that is Donald Trump is 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 companies?
career jobs for people?
Well well that's it it's uh that's what the uh the the president's policies are designed to do is to bring back high value added manufacturing that pay very high wages and uh 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 interconnected.
And we talk about interest rates and getting interest, needing people on interest rates lower, which I understand.
But people should also know that the tariffs, which have not led to any inflation, also right now we're generating around $200 billion 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 that.
as you said and of course those those foreign capital commitments are also quite substantial.
Yeah.
All right quick break we'll come back more with Treasury economist Joe Lavornia is with us and then we'll get to your calls coming up 800 941 Sean if you want to be a part of the program.
We continue with Joe Lavorno 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 this cold war with President Trump, and because President Trump obviously disagrees with him, you know, he's gonna show uh 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, uh, in my view.
I think the economic numbers warrant that.
And I think that would be just the start.
I I I personally agree with the president.
I think a a one uh basis point reduction would be appropriate too.
And I think it would have the added impact of 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 a hundred percent you get a tax deduction in year one.
I mean, that that that's gonna incentivize everybody to build immediately.
They're not gonna wait.
Yeah, no, that's right.
Well, yes, it's uh you're exactly right, Sean.
It's the hundred percent expensing uh of plant and equipment in addition to to factories, which we haven't had before.
That'll be very, very supply side um uh constructive, meaning it's it's not going to cause inflation, actually bring inflation down as the economy accelerates, which is what we saw uh as you mentioned earlier under Reagan, implicitly and also under President Trump's first term where we had effectively three percent growth uh prior to pandemic and inflation was two percent or less.
Look, long term uh though the th that all supports certainly uh low interest rates, uh no question, broadly speaking.
And uh, I'm an optimist, so I do expect the uh the housing market to recover sh uh over time, that affordability won't remain depressed.
Uh the income numbers, the blue collar boom we we've highlighted is certainly very positive.
So there are a lot of good things going on, and I'm gonna be hopeful, Sean that's well, I mean the the added supply and the higher interest rates and lack of activities is making home buying more affordable for people.
Maybe that that uh that's certainly a good, but if you really want to stimulate the home buyer market, the single best thing you can do is you gotta you gotta get these interest rates down because they're too high, and people simply cannot afford to pay two thousand dollars more for a monthly mortgage payment, uh, just because uh Jerome Powell has an agenda and and he doesn't like Donald Trump, which is where I feel we're at here.
I it's to me it's gotten personal.
Am I wrong on that part?
Uh sure I I can't comment on that.
I mean, I I uh I'd rather not say.
I mean, I understand your point, but um well, I may rather not say is it of a strong possibility?
Well, here's what I would say.
Again, I I would say that it seems personal to me.
Well, the uh I've not talked to the president or or or Chair Powell on that, but 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 in the the income part is very powerful, and that's something the president has direct control over, and that's looking good.
Home prices in some places have moderated.
But I do expect over time, Sean, that you will see affordability pick up because you'll see market based rates come down.
And you know, uh, we need I gotta run, but we need interest rates now.
But Joe, I appreciate you being here.
I really do, my friend.
God bless you.
And uh 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 now until the top of the hour of punchline and patriots.
That is a week from the Saturday, and that's in Clearwater and Tampa.
That is at Ruth Deckard Hall.
Uh tickets uh very limited seats left.
Same with Fort Lauderdale, that's the twenty-ninth day after.
Uh, if you're interested, we'd love to have you.
It's gonna be irreverent, crazy, fun, and uh 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 fake 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.
Uh, and that is they oppose Iran obtaining nuclear weapons.
I think the definitive poll by Robert Cahale of Trafalgar and an insider advantage head, Matt Towery, uh, 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 developing nucle 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.
85%, 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, uh, would need American assistance to make this happen.
And hence the decision that the President will have to make and and I have every confidence that the President understands.
He's been saying since 2011 that Iran cannot have a nuclear weapon.
Uh one of the more bizarre conversations to arise out of this is well that this is against MAGA.
Donald Trump is against forever wars.
You're right.
So am I 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 Solomon on the tarmac and 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 s heavily civilian areas populated civilian areas like Tel Aviv and they have sworn to wipe Israel off the map and 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 Baghdadian associates.
I'm not sure how some are saying that the MAGA movement is an isolationist movement, which means no involvement at all.
It's not.
It is in 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 going to be, but there's always risk with any military operation.
And take it out and forever end the threat of Iranian mullahs married to their sick converter die idea 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 Solomon,
Baghdadi 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 us.
Senator Hurray 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 2011 and hundreds of times since it seems like the moment is here.
Yeah the forever war is started in nineteen seventy nine when the Iatola replaced the Shah they held our uh embassy personnel hostage since nineteen seventy nine Iran has been waging war through Maz Law and the Houtis 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 the infidel you're not listening to what they say.
November the fourth and Iran is commonly referred to as death to America Day in 1987 they made that a holiday that was the day they took up 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 in World War II the term was called the duration.
We're going to fight and we beat uh 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 uh 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.
So let's finish the job.
I 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 and Iran through their proxies, and I've been to Israel a number of times, as you have been there many, many times, many, many times more than me.
I mean, I I went to one border town with Gaza at the time in I think 2015 had been hit with 10,000 rockets in ten years.
They have withstood Houthi rebel rockets, Hezbollah rockets, Islamic jihad rockets, Hamas rockets, Hud's forces, Iranian Revolutionary Guards forces, uh helped develop the October seventh attack against Israel.
They provided the weaponry for that.
They've been fomenting terror uh not just in the region but around the world.
Uh there's not a single country that wants to come to the Iran 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 Solomon al-Baghdadian associates or or beating the caliphate?
I don't see that as inconsistent at all.
Well, I think the pr yeah, you're dead right.
The primary job of being commander in chief president of the United States is to protect us, our homeland from existential threats, and to protect our allies.
And we have no better ally than the state of Israel.
Iran has 900 pounds of highly enriched uranium that could make about a dozen bombs if they went to the last mile.
They're at 60 percent.
To get to 90 percent is weeks, not years.
Uh they have one civilian 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 uh in large quantity.
They've been doing this for decades, and their goal is to develop a um nuclear weapons force to use as part of their ideology.
I don't think rocket man is going to attack America.
I don't believe Putin's ambition is to destroy Israel, destroy the United States.
Nor do 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 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 could wipe out any ability of them in the future to make money.
Uh the Israelis could do that on their own.
They don't need our help or assistance for that.
Uh certainly they can knock out their gas-powered uh power grid and and the entire country will be without power.
That that that's another easy target because the Israelis own the sky over Iran.
So, you know, uh once once the nuclear component is out of the way, I I guess at that point it's gonna be up to Israel what they decide to do in their conflict with uh with Iran.
And I would and frankly, with all the weapons they've fired into Israel, I wouldn't I I wouldn't put it past them to take it all out.
Well, so here's the question for Israel and really The world.
Uh, 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 sponsored terrorism is Iran under U.S. law.
They have a policy to decimate Israel and to reshape the entire faith 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 to 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 regime down.
But Israel will not tolerate living this way anymore.
The Jews in Israel are oppressed by everybody around them.
They have lived in fear.
They have lived in uh uh uh uh an oppressive environment since its founding, October the seventh.
Children were murdered, women 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 too.
And to all these people sitting in the stands, second guessing Trump, you have no idea what you're talking about.
You would know the difference between a Sunni and a Shia than anything.
So this is a religious theocracy.
They're fanatics, they're dedicated to killing all the Jews and coming after us.
They meant it when they say death to Israel, death to America.
So I'm hoping and praying we take their nuclear program down.
And if 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 and how far they want to go.
Um I don't think President Trump has not expressed any desire for regime change.
He even identified that they know where the supreme leader is, but they're not going to kill them.
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 interest of the United States.
And at that point, the Israelis, I mean, after all that Iran has done to to murder and rape, and you're right on October 7th, but it's an ongoing, never-ending, you know, missile barrage funded by Iran and their proxies.
Well, so President Trump has told the ITO if you attack American bases or interests, that will be the end of you.
That will be regime change if they come after our forces in the region.
That will be the end of the Ayatollahs.
But put yourself in Israel's shoes for a moment.
What is the right response when people lob rockets consistently at civilian populations?
They raid your country, they murder rape children, women, uh, they have people hostage.
What would we do if one country, if a country sent one rocket in to America?
I have to go.
One rocket, I've been making the same argument.
We we would demand immediate military action.
Senator Lindsey Graham, appreciate you being with us.
It's gonna be an interesting week ahead.
There's no doubt about it.
Uh 800-941 Sean, if you want to be a part of the program.
All 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, toll-free.
It's 800-941 Sean if you want to be a part of the program.
Uh will President Trump back with full coverage tonight, nine Eastern on Hannity on Fox News as we continue.