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Transcript: Rep. Summer Lee on “Face the Nation,” April 28, 2024
The following is a transcript of an interview with Rep. Summer Lee, Democrat of Pennsylvania, that aired on April 28, 2024.
MARGARET BRENNAN: We go now to Democratic Congresswoman Summer Lee. She joins us from her district in Pittsburgh. Good morning to you, Congresswoman.
REP. SUMMER LEE: Good morning. Good to be with you.
MARGARET BRENNAN: You just heard our CBS polling in reference to your home state. I know last weekend, Governor Shapiro told us, if President Biden’s pause on natural gas permits goes on a long time it’ll cost Pennsylvania jobs. And we’re seeing in our polling, the perception that Donald Trump would be better 49% of voters said, than Joe Biden 33% on these oil and gas exploration issues. This seems to be a headwind for Democrats in your state. Are you concerned?
REP. LEE: Yeah, I think that there’s- a I think there’s a lot to be concerned about. Right? I think that when we look at these polls, you know, we’ll pull out one issue at a time. But the reality is, is that there are a number of issues mixed together that make voters feel confident, that make voters- some other voters feel hopeless, or feel like maybe there’s a little reason to participate. And I think that we’re dealing with that a lot, right? When we talk to voters throughout my election, we talked to a lot of voters who, whether it’s the economy, the price of you know, goods, gas, food, things of that nature, or abortion, like all of these different issues made voters feel like there was very little options that they had, and that they didn’t want to participate. And we have to figure out something very quickly to address that.
MARGARET BRENNAN: In your primary, which you won, your democratic challenger’s point of attack was your willingness to break with President Biden in his unequivocal support for Israel with its war with Hamas and Gaza? You’ve called for a ceasefire. If you believe that this is such a matter of conscience, and so important, can you truly ask progressive voters to go and vote for Joe Biden in November?
REP. LEE: Yeah, I think that we do that every year, every two years, we ask voters, progressive voters, we ask black and brown voters, young voters, we ask them to weigh the totality of our options, right? The totality of a candidate, the totality of the things that we care about, that we come to the polling places with and that’s not new, right? This is an issue that gets a lot of issue and there are going to be very reasonably a lot of people who will feel apprehension about that. And I think that is not a foregone conclusion, that there’s just nothing that Democrats can do. When we look at an election like mine, we’ve seen how popular it is to take a pro-peace stance, how popular it is to call for a different direction in the policies that the United States has towards the war in Gaza, towards sending unconditional weapons, offensive weapons to Netanyahu and our government still has time to react, we still have time to listen to the folks who have feelings about that. And that’s what we have to do.
MARGARET BRENNAN: So, you went to meet with some of the campus protesters out in Pittsburgh recently, you are in support of some of those young people who have chosen to protest against what’s happening in Gaza. Do you hear from them that they’re excited to go vote for Joe Biden?
REP. LEE: To be honest, you know, we don’t. It’s not a topic that, you know, always comes up, but it does a lot. I think that the number one goal for them right now, you know, just listening to what they had to say is that they want to see a ceasefire in Gaza, they want to see the indiscriminate bombings and killings and right- that is the reason why they’re on there’s a lot of noise around this that- that distracts from that. There’s a lot of noise that tries to take away from that central message. But, that is the central thing they are fighting for and they believe and they feel like our government can do more. And that’s what they’re looking for. They’re looking for some sort of acknowledgement from our leadership, that they hear our needs, that they hear these young people saying that we want our country, we want our government to go in a different direction.
MARGARET BRENNAN: Well, I hear you clearly distinguishing between Prime Minister Netanyahu and Israel, but some people, and I’m sure you know this, hear criticism and understand it as antisemitic when it is critical of Israel. The Prime Minister of Israel said that what’s happening on America’s college campuses is horrific. He said the protesters are antisemitic mobs, and he compared it to what’s happening in German universities back in the 1930s. How do you respond to that or the perception of that, perhaps among some of your constituents?
REP. LEE: Certainly, you know, his language is intentional and it’s always been. But the one thing that I know is that Benjamin Netanyahu has not been on the college campus in the United States. He has not talked to these students. He has not seen their encampments, he has not seen or heard the message that they’re delivering and he doesn’t want to hear it, right? His number one goal is, you know what he’s doing over there and anything that that harms or- or helps or makes it harder for him to achieve that goal, he’s going to- he’s going to distract from. But, this idea that every criticism of Israel is antisemitic is dangerous. There is a fair critique that we must make of every government of every war of every appropriation and when we say that students who are engaging in the time honored tradition of civil disobedience, of campus protests and action are inherently bad, are inherently antisemitic, particularly as we see Jewish students standing in solidarity with Muslim students, or Arab students and Black students. When you’re on the ground, you see that all of those students have been working together or had been learning and educating together and they are all in one voice crying for a difference in direction, particularly from Benjamin Netanyahu. So I’m not shocked that he would want to cast them as evil, cast them as in the wrong that’s been his MO.
MARGARET BRENNAN: Congresswoman, thank you for explaining what’s happening within your party and your position. We’ll have to leave it right there. We’ll be right back.
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Stock market plummets after Fed forecasts fewer rate cuts in 2025
U.S. stocks plummeted in one of their worst days of the year after the Federal Reserve forecast Wednesday it may deliver fewer shots of adrenaline for the economy in 2025 than it had earlier projected.
The S&P 500 fell 178 points, or 3%, pulling it further from its all-time high set a couple weeks ago. The Dow Jones Industrial Average lost 1,123 points, or 2.6%, while the Nasdaq composite dropped 3.6%.
The Fed said Wednesday it’s cutting its benchmark interest rate for a third time this year, continuing the sharp turnaround begun in September when it started lowering rates from a two-decade high to support the job market. Wall Street loves lower interest rates, but the Dec. 18 cut had been widely expected by Wall Street.
Why is the stock market down today?
Investors were unsettled by the Fed’s forecast for fewer cuts in 2025, even though many economists had already been paring their expectations given sticky inflation.
“Markets have a really bad of habit of overreacting to Fed policy moves,” Jamie Cox, managing partner for Harris Financial Group, said in an analyst note. “The Fed didn’t do or say anything that deviated from what the market expected—this seems more like, I’m leaving for Christmas break, so I’ll sell and start up next year.”
The bigger question centers on how much more the Fed could cut next year. A lot is riding on it, particularly after expectations for a series of cuts in 2025 helped the U.S. stock market set an all-time high 57 times so far in 2024.
Fed officials released projections on Wednesday showing the median expectation among them is for two more cuts to the federal funds rate in 2025, or half a percentage point’s worth. That’s down from the four cuts they had expected just three months ago.
“We are in a new phase of the process,” Fed Chair Jerome Powell said. The central bank has already quickly eased its main interest rate by a full percentage point, to a range of 4.25% to 4.50%, since September.
What happened to the stock market today?
Asked why Fed officials are looking to slow their pace of cuts, Powell pointed to how the job market looks to be performing well overall and how recent inflation readings have picked up. He also cited uncertainties that will require policy makers to react to upcoming, to-be-determined changes in the economy.
While lower rates can goose the economy by making it cheaper to borrow and boosting prices for investments, they can also offer more fuel for inflation.
Powell said some Fed officials, but not all, are also already trying to incorporate uncertainties inherent in a new administration coming into the White House. Worries are rising on Wall Street that President-elect Donald Trump’s preference for tariffs and other policies could further juice inflation, along with economic growth.
“When the path is uncertain, you go a little slower,” Powell said. It’s “not unlike driving on a foggy night or walking into a dark room full of furniture. You just slow down.”
One official, Cleveland Fed President Beth Hammack, thought the central bank should not have even cut rates this time around. She was the lone vote against Wednesday’s rate cut.
Wall Street’s worst performers
The reduced expectations for 2025 rate cuts sent Treasury yields rising in the bond market, squeezing the stock market.
The yield on the 10-year Treasury rose to 4.51% from 4.40% late Tuesday, which is a notable move for the bond market. The two-year yield, which more closely tracks expectations for Fed action, climbed to 4.35% from 4.25%.
On Wall Street, stocks of companies that can feel the most pressure from higher interest rates fell to some of the worst losses.
Stocks of smaller companies did particularly poorly, for example. Many need to borrow to fuel their growth, meaning they can feel more pain when having to pay higher interest rates for loans. The Russell 2000 index of small-cap stocks tumbled 4.4%.
Elsewhere on Wall Street, General Mills dropped 3.1% despite reporting a stronger profit for the latest quarter than expected. The maker of Progresso soups and Cheerios said it will increase its investments in brands to help them grow, which pushed it to cut its forecast for profit this fiscal year.
Nvidia, the superstar stock responsible for a chunk of Wall Street’s rally to records in recent years, fell 1.1% to extend its weekslong funk. It has dropped more than 13% from its record set last month and fallen in nine of the last 10 days as its big momentum slows.
“As we wrote in our 2025 outlook a couple of weeks ago, stretched positioning and sentiment left stocks vulnerable to a sell-off,” Jeff Buchbinder, chief equity strategist for LPL Financial said in a note about today’s market sell-off. “The big jump in inflation expectations and related bond sell-off was a convenient excuse. Once support from tech evaporated, no other groups were able to step in to fill that gaping hole.”
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