00:00:00.000Memo to the Fed. Mortgage rates remain too high because of the stupidity and partisanship of a Federal Reserve chairman who needs to get the hell out of Washington, D.C. when the clock strikes midnight on May 15th.0.99
00:00:16.620We cannot be reminded too many times that Powell's Fed committed three major blunders that have cost America jobs, growth, and tax revenues.0.93
00:00:27.240Those blunders, raising rates too early and too fast in Trump term one, raising rates too late and too slow as the Biden hyperinflation began to take hold.
00:00:39.480And now lowering rates far too slowly, even as the data screams to do otherwise.
00:00:46.040As the Bard might say of Powell's mid-spring nightmare, get thee gone.
00:00:51.440doctor it's a friday 1 may year of our lord 2026 dr peter navarro joins us uh that was dr navarro
00:01:02.660his uh those uh amazing videos he puts up so i want to start i'll start here because we played
00:01:09.480your video to open it up and then i'm gonna get into some of the economic numbers particularly
00:01:14.140in the manufacturing side we had the great john gardner on last night for about 30 minutes and
00:01:19.380walk through this in detail this kind of manufacturing renaissance you're starting to see
00:01:23.220the green shoots of because of our tariff policies the big beautiful bill the the incentives coming
00:01:29.580from a supply side tax cut and deregulation all three of those converging uh to um to have really
00:01:36.480i think the beginning of amazing results but since you're there and by the way eric bowling's with us
00:01:42.120And Dr. Theo is going to stick around. We're going to talk straight or her moves, Persian Gulf oil, the economy and and guess basically the alternatives President Trump came out with yesterday in discussing where we go forward on the Iran war.
00:01:59.720But let's go back. Since Navarro went there, let's go there. Dr. Peter Navarro, Powell has responded to, I guess, I don't know if pressure or whatever it was with Gene Pirro or what he thinks is an affront to him by basically telling the administration, hey, look, I'm going to step down as as the head of the Federal Reserve.
00:03:22.420unqualified, petty, vengeful. Pick your word. He does not belong on the Fed. And here's what1.00
00:03:31.480pisses me off and why I did that video, Steve. Anybody in the media, anybody in the legacy media
00:03:40.120who defends Powell on the basis of him being competent does not understand the enormous
00:03:49.620damage Jerome Powell has done to America. The case, the case against Powell's competence
00:03:57.300is unequivocal, Steve. Even the Federal Reserve itself has published studies that show
00:04:05.480in Trump's first term, Powell raised rates prematurely and choked off significant growth.
00:04:14.180Yep. Yep. In Biden's term, unequivocally, he unleashed the worst hyperinflation since 1970s that we're still grappling with. That's on his plate, sir.
00:04:28.500And right now, since Donald Trump has gotten in office and we're approaching two years now, Powell has kept rates too high, not lowered enough, again, causing tremendous, tremendous damage.
00:04:46.720It's slower growth. It's lower real wages. It's higher debt. It's higher interest rates because of that debt, not just because he won't lower them.
00:04:57.300And that SOB needs, as I said, quoting the bar, get the gone for the country.
00:05:04.180Now, one other thing, Steve, he wants to be the shadow fed chair.
00:05:09.080That's what he's going to be the shadow fed chair.
00:05:51.500So we've seen this disaster, and that's why Powell's not leaving.
00:05:55.300He thinks he's got a point to prove to counter exactly what you said now.
00:05:59.220And all the things are most egregious because even what he did in Trump's first term, because the policies were correct, he could not slow down the Trump economic train as it as it as it really started revving up in the fall of 2019 when everything came together.0.80
00:06:16.660The only thing that chop-blocked us was the Chinese Communist Party's bioweapon coming out of the Wuhan lab, as referred to as the pandemic.0.61
00:06:25.420But the most egregious thing he did was was the cutting of rates for Joe Biden in the Biden regime in 2024 to try to juice to try to juice the market so that so that Biden could point to better economic a better economic indicators.0.82
00:06:46.600correct, Dr. Navarro? That's destabilized the entire global economy and financial system
00:06:53.860by what Jerome Powell did. And again, I ask every SOB in the legacy media who somehow thinks that
00:07:01.960Powell's going to be some bastion of Fed independence and has done a competent job,0.91
00:07:08.400look at the frigging record. Any journalist who says that that guy is competent to serve0.54
00:07:14.920is not competent to be a journalist covering financial matters, full stop.
00:07:21.440And that guy is going to try to command a bunch of liberal Fed people, pro-Biden people.
00:07:29.920Steve, the irony here is that the complaint is that Donald Trump is trying to take away the Fed
00:07:36.740independence when it was Powell that prostrated himself on his knees to get reappointed,
00:07:42.040that basically gave that away to begin.
00:07:44.360But where's where's that? Where's the where's the media outcry from the financial media?
00:07:48.800Where's the Wall Street Journal and the Financial Times of London and Bloomberg?
00:07:52.880Because all they talk about is the independence of the Fed, independence of the Fed and Trump.
00:07:57.480Warsh is as independent as you're ever going to get.
00:08:00.220But he can't be independent because a Fed chair who should ride off into the sunset is going to remain and he's going to remain.
00:08:06.700And his arrogant response to the day, I will remain as long as I think it's necessary.
00:08:11.780Right. He's clearly going to try to challenge Kevin Walsh's independence at the Federal Reserve.
00:08:19.220Is he not, sir? We have never, Steve, in the entire history of our republic, had a Federal Reserve that is embarking on a road of partisanship, partisanship and conflict in ways which will derail proper Fed policy full stop.
00:10:56.060Now, those imports were not like consumer good crap from around the world. They were capital goods and machine tools and circuit boards and chips and things that we are putting in place in America's latest wave of factories to produce things here, to increase our productivity and our wages.
00:11:20.600And it's all happening. Every single dollar of that capital goods coming in is a product of Trump's economic policies, starting with the tariffs. We are bringing our manufacturing back on shore.
00:11:38.020And so you're going to see over time, you're going to see over time these imports come in, our factories spring up, and we're already seeing another, you know, another geek thing for you, the ISM manufacturing index.
00:11:51.780It was below 50, so a zero to 100 index, for much of Biden's latter part of his term.
00:12:00.140And it didn't really get above 50 until some months in to the Trump term.
00:12:07.900And now it's robust and continues to move up.
00:12:11.520That's a wonderful sign that we are in a manufacturing renaissance right here, right now, Steve.
00:12:19.360So you've got to have the sophistication to look behind the headline numbers and understand how Trumpnomics, the tax cuts, the deregulation.
00:13:11.700Tariffs are the worst thing in the world.0.83
00:13:13.480They misinterpret every piece of data that's there that's quite self-evident.
00:13:17.540So when are we going to start banging some heads in the, you know, we bang enough heads in the political media.
00:13:22.840When are we going to start banging some heads in the business media, sir?
00:13:26.720Well, you answer your own question, Steve.
00:13:28.960The ideology of the financial press is globalism.
00:13:35.680And therefore, they cannot craft any message, i.e. the news, in ways which would support tariff protection to protect Americans and American factories from unfair trade.
00:13:54.060And that would onshore not just our production, but our labor by shutting our borders.
00:14:02.260I mean, it's ideology, and you see it every day.
00:14:06.640I do think the worst one right now is Bloomberg.0.99
00:14:10.400I mean, they blatantly wear that crap on their sleeve and their coverage.0.99
00:17:24.520If he was really concerned about growth, and honestly, monetary policy as it applies to growth is the only thing a chairman should do.
00:17:32.060So he has to use the gas in the pedal with interest rates.
00:17:34.640If inflation gets too high, use the brakes, raise interest rates.
00:17:38.020If it's nice and low and demand starts to seep or slow down, press the gas, lower interest rates.
00:17:43.960He played politics throughout four years of Biden, especially in what you pointed out at the very end.
00:17:50.420the month of October before the November election was the first time he lowered interest rates.
00:17:57.220He should have been raising them and lowering them as things got better. What he did was
00:18:00.700he started the economic turnaround. Powell started in the last month or month and a half
00:18:07.680of Biden's terms, which gives him that honor of being the most political Fed chairman probably
00:18:13.460in history, certainly in my lifetime. I think Warsh, it's going to be very important to Warsh
00:18:18.220come out the box. Look, Fed decisions are made almost unanimously every single time. In fact,
00:18:24.840the decision that they just made the day before yesterday was an 8-4 split, which is highly
00:18:32.400unlikely, right? It's usually Fed chairman delivers a unanimous vote. And so Warsh has to
00:18:39.180step in here and just leg sweep Jerome Powell immediately, clip his wings, you're no longer
00:18:44.200chairman sir but you'll be one vote you want to be dissenting vote that's fine stand out also had
00:18:49.700the supreme court yeah and he pal look he's a third tier investment banker not an economist
00:18:57.180not someone like um a scott bessen or war somebody that knows capital markets deeply
00:19:03.520right either a trader or knows capital markets this guy was a third term a third tier investment
00:19:09.540banker and a lawyer. He had the worst call in at least my lifetime of a Federal Reserve.
00:19:19.100It's almost as bad as some of the calls they were making Greenspan was making up to the 2008
00:19:23.700financial crash. When he called inflation, when the inflation started burning, he said it was
00:19:30.140transitory. Remember, he wasn't going to make moves against, he said, transitory inflation.
00:19:34.680That is the worst call, at least since Greenspan didn't recognize what was the lead up to the 2008 financial crisis.
00:19:43.300This is why this guy should not be around.
00:19:46.060This is why this guy should be out of here.
00:19:48.020And now he's going to fight a rearguard action every day against Walsh and President Trump.
00:19:55.160So all the business press, Bloomberg, The Wall Street Journal, Financial Times of London, all of them, New York Times, Business Section, Barron's.
00:20:02.960You know, I don't want to hear you whining anymore about Trump. Right. Trump trying to have a non independent. Kevin Warsh is an independent guy. He's a guy that I really pushed back, you know, what, eight years ago for for Fed chair at the time.
00:20:19.200He or either the backup, the cover bid would be John Taylor out of Stanford.
00:20:24.800And, of course, Mnuchin and these guys all wanted Powell.
00:20:31.560His whole idea that he put in this mindset of transitory inflation was just dead 1,000% wrong, sir.
00:20:41.460The only question I might make is, well, maybe it was him.
00:20:45.460Janet Yellen was also talking transitory inflation, inflation being transitory throughout the time she spent up at the top levels as well.
00:20:53.820So it was a talking point that they probably delivered as a political talking point, maybe in conjunction with the White House, which is what they're not supposed to be doing.
00:21:03.780They're supposed to be an independent body.
00:21:06.880It was horrible that they didn't get in front of inflation.
00:21:10.980And this whole idea that Powell is saying that he was in the Trump term, where inflation is a third or less of what it was during Biden, him saying, well, we may have to raise when Trump is saying let's lower because to get in front.
00:21:24.740Well, where were you four years ago, five years ago, Powell, when inflation was on its way up?
00:21:29.080You get in front of the rise of inflation with interest rates, not behind it, but somehow you wanted to get in front of it with Trump.
00:21:38.000No, and this is one of the reasons I tell people, this whole affordability thing that Democrats are trying to use to hammer President Trump, it's all their creation, and that's not coming down easily.
00:21:48.180Once it's in structurally, it's going to take you a while to unwind it.
00:21:52.520Anyway, let's play this cold open we've got on the war in economics, and we've got Eric Bolling with us and Dr. Bradley Thayer.
00:22:00.900This is according to Iran's state media. This is their response, which was expected today.
00:22:07.920Now, we should know President Trump rejected a previous offer from the Iranians today marks 60 days since the conflict began.0.90
00:22:16.280Now, that 60 days is important because it would appear to trigger the War Powers Act, a Vietnam War era law that requires Congress to sign off on U.S. military action that lasts beyond 60 days.
00:22:25.520But according to Defense Secretary Pete Hexith, there is a loophole.
00:22:29.260He told Congress that the April 7th ceasefire paused the clock on the 60-day countdown.
00:22:35.480Now, many Democrats and some Republicans don't quite buy that.
00:22:38.800There's also brand new reporting this morning.
00:22:40.600According to a CNN analysis, at least 16 U.S. military sites have been damaged by Iranian strikes.
00:22:46.620A majority of U.S. positions in the Middle East, that would make up a majority of positions in the Middle East.
00:22:51.740Some, we are told, are virtually unusable now.
00:22:53.880What are you hearing about this latest response from the Iranians?
00:23:00.580Yeah, it's really dropped in the last hour very, very, very, very recently.0.95
00:23:05.900It does seem to be something that is making the Pakistani mediators sort of breathe a slight sigh of relief.
00:23:13.600Of course, they've been expecting Iran to respond by Wednesday.
00:23:17.520And if not by Wednesday, then by Thursday.
00:23:19.640And if not by Thursday, then really the sense here was that this was the day.0.51
00:23:23.440If Iran didn't respond by now, then things were going to slip potentially out of control pretty quickly.0.63
00:23:29.460So the Iranians have put something on the table.
00:23:31.720We don't know what's inside of it, of course, at the moment.
00:23:35.080It is very clear, having had conversations in the past few hours with Iranian officials,
00:23:41.800that they don't trust President Trump, that they do have an idea of how they could get back into talks.
00:23:47.880And part of that was indicated to us that it would be a simultaneous lifting of the blockade of the Strait of Hormuz.
00:23:55.460They said, who's going to guarantee for us if we take that step that the United States doesn't just then move the U.S. Navy into the Strait of Hormuz and take control of it?
00:24:05.100So there is this real, real deep distrust.
00:24:09.080I think there's also this sense here that potentially things have been pretty close.
00:24:14.580And it's not clear if Iran has bridged the final gaps, or are they playing for time?
00:24:20.040Are they going to try to spin out more rounds of talks?
00:24:22.920We know very clearly, as undoubtedly Kevin was laying out as well, that President Trump has said some of this could be done on the phone,
00:24:31.240that he wouldn't send people here to talk if they were just 18 hours to get here,
00:24:36.740if they were just going to arrive and find something on the table they already knew wasn't acceptable.
00:24:41.600So I think if we get an indication that a U.S. talks team were coming here, that would indicate that there's space to move forward.
00:24:50.820Eric, we have a saying here in the world, price is truth.
00:24:56.700Talk to us about what the markets are telling us about the Iranians' position right now on this Strait of Hormuz and the blockade.0.97
00:25:06.440So much to get through, Steve. I'll blow through it real quickly.0.51
00:25:09.520First of all, gasoline is now $4.39 a gallon.
00:26:17.360And that's relevant because 2.5% is a target, but 2% in the midst of a 60-day conflict that's choking off oil means that in the United States, the dog is still wagging the tail.
00:26:28.660We saw China the day before report that their economy was slowing, likely due to the higher oil prices, which means now the tail is starting to wag the dog, where the high price of oil is really starting to hurt the Chinese economy because we're self-sufficient in oil.
00:26:44.500Remember, we use 20 million, we produce 13, and for some odd reason, we're shipping 14 million barrels a day out, but that's another story.
00:26:53.980So the good news is, versus China, we're doing really, really well.0.93
00:35:31.760Victory at Sea is one of his favorite documentaries in Sammy Elliott Morrison's book.
00:35:37.180It's one of his favorite books on naval warfare.
00:35:39.920His entire hemispheric defense is Mahanian, right, as we now make the Central Pacific
00:35:47.180the strategic pivot of the United States of America and not the heartland of the Eurasian landmass,
00:35:52.720which totally changes kind of world geopolitics that's been around, or at least that fight of
00:35:59.160it's been around for thousands of years. Your thoughts, as Admiral Cooper at CENTCOM briefed
00:36:05.600him yesterday, when the range of alternatives, where do you think we are, sir?
00:36:11.840Well, Steve, Admiral, according to the Axios report, right, Cooper was briefing him on
00:36:17.520two major pillars, and that would be a Hormuz option, which might include ground forces,
00:36:25.060and then special operators really working on to seize fissile material, the enriched uranium.
00:36:34.620I think President Trump has got three points of leverage here. First, the blockade is working
00:36:39.300extremely well, and that's a very potent weapon to use against the Iranians. Secondly, he's got1.00
00:36:47.460the threat of escalation. And that includes the following elements. First, we've learned a lot
00:36:54.100about where the Iranians are storing things given this hiatus, this break in targeting. So there
00:37:01.540are going to be a lot of more, there are going to be military targets that will be very usefully
00:37:08.240struck, as well as perhaps broadening that to the economic, civilian and economic targets,
00:37:14.560which, of course, Iran does not want us to target.
00:37:20.540And then the third component there, besides the blockade and essentially returning to military force, would be China.0.63
00:37:30.240The pain that he's putting on communist China gives us a leverage as well.
00:37:34.420So those things are working, I think, very effectively in President Trump's favor against the Iranian regime.0.54
00:37:44.560That said, of course, Iran has every incentive to drag this out as long as possible.0.54
00:37:50.880So of those three elements, one that we haven't talked much about, communist China, is really going to come to the fore as we move into the mid-May meeting and pressure that Xi Jinping is going to face based on his economy, as Eric was saying.
00:38:09.820doctor here's what i don't like about the framing so far i didn't have time to send you this morning
00:38:15.720but i get up this morning you go through all the european papers no news sites in asian
00:38:19.640and um then finally the american financial times and the american papers they're clearly framing
00:38:26.020this at least as of today is that it's not so much the iran war and how this has to be focused
00:38:33.540but they're they're the the ccp is saying this has got to be this is going to be about taiwan0.82
00:38:37.960I mean, it's pretty I was pretty shocked about the how their information warfare has framed this, that from Beijing's perspective, they're going to have a very detailed talk about Taiwan.0.89
00:38:55.020Taiwan just put up numbers yesterday, folks, if you didn't see it, their economic growth is through the roof because of advanced chip design.
00:39:01.380I mean, the risk that they took years ago is paying off big league that they essentially make all the advanced chips that drives the world's economy and particularly the American economy.
00:39:12.480Your thoughts on that? I mean, did you see the same thing of how they're doing this?
00:39:15.880They're going to have a direct discussion about Taiwan and they want that, no doubt about it.0.86
00:39:20.500And President Trump can tell them to go to hell with respect to that. Right.0.94
00:39:24.280It's they can bring up Taiwan if they choose, but we don't have to engage on that.
00:39:28.880We can shoot that down. So no doubt that Taiwan is going to come up in the mid-May meeting, trade, a lot of the South China Sea, East China Sea aggression that the CCP has launched against our allies and partners in the region.
00:39:49.500Of course, the communist Chinese can bring that up, but we're not going to abide on that. I hope0.89
00:39:56.600the Trump administration very much does not play the CCP's game in trying to establish any type
00:40:03.260of linkage in that regard. If they want to bring up Taiwan, we can bring up the Uyghurs. We can0.65
00:40:09.000bring up the genocide in Xinjiang, crushing of the Tibetan people. There are many other issues,
00:40:14.800the human rights record in general that we can bring up and the illegitimacy of the Chinese
00:40:22.220communist government. So if they want to go down that road, we can respond0.56
00:40:27.180very quickly, I think, and very effectively. My concern is there's an awful lot of business
00:40:35.920community. Remember this whole thing on AI, and we're going to talk to you about even more
00:40:43.220focused endeavors we're going to have on these data centers, right, which are a plague in this
00:40:48.880country. The phony, the oligarchs talk out of both sides of their mouth. They all, you know,0.96
00:40:57.080we have to be AI, we have to be China, we have to be China. At the same time, those oligarchs
00:41:01.480are totally in business with the Chinese Communist Party and don't want any confrontation
00:41:07.700with the Chinese Communist Party. We got about a minute and a half, Dr. Thayer. With that being
00:41:12.580reality, you know, there's a lot of people in President Trump's ear that he should reach some
00:41:17.500sort of rapprochement about Taiwan with the CCP. Your thoughts? Well, it's clear, as we just
00:41:25.160discussed, that communist China is aggressing. They have Taiwan in their sights, and they're0.69
00:41:30.020moving every, they've taken for many, many years, steps to prepare the battlefield in Taiwan.0.99
00:41:37.180A way that we can shoot that down very effectively would be to cut off the chips.0.57
00:41:43.680So it's important for everyone to recognize in the United States at any level to recognize that they're gunning for Taiwan.0.96
00:41:52.080Aggression is certain in that regard, and we need to respond now.0.85
00:41:56.420Chips are a very effective way of doing that, as tariffs are.
00:45:28.160So we're already packed for this afternoon and tomorrow morning,
00:45:31.620and that doesn't include everything that's going to happen in the interim.
00:45:33.680So we're going to juggle here in the War Room
00:45:36.780and make sure that you get all the information and analysis you need.
00:45:41.880I will just give you a heads up for the War Impossed
00:45:43.940because you've been driving this for a couple of years.
00:45:45.480And remember, for those of you who have been with the show for a while, in 22, we would have never taken back the House unless it was for your efforts on the redistricting war of 22.
00:46:00.90011 seats changed hands in redistricting.
00:46:04.660The Democrats picked up three, and we picked up eight.
00:46:07.980And particularly in Florida, we raised holy hell and really made the legislature there.
00:46:15.480that had no interest in doing it, I think it was four seats at the time,
00:50:43.440They applaud and want a satanic statue in the actual people's house in Minnesota.
00:50:54.500This is what turns them on, correct?0.67
00:50:56.520Because they can mock Christianity.0.97
00:50:58.260Yeah, absolutely. You've got the governor, what our governor, what he said back then, he goes, well, we've got to be fair. I'm going, be fair to the devil? I go, you know, it's beyond comprehension. Then you've got Keith Ellison, our attorney general, attacking my Christian platform, LyndaleRecoveryNetwork.org. He's been all in on the attack. He doesn't want people getting off addiction and finding Jesus.
00:51:24.800And this has been going on, and this is a bigger battle than people realize.
00:51:30.260It's a spiritual battle of biblical proportions we're in.
00:51:33.960That's why these midterms coming up are the most important midterms in history.
00:51:41.560Sir, we've got about a minute and a half left.
00:51:44.560Folks want to know how we're doing on our deal.
00:51:47.340Yeah, this is the last day, everybody.