Return to Transcripts main page

CNN News Central

Stocks Rise After Fed Cuts Interest Rates; Security Ramps Up For Charlie Kirk's Funeral Sunday; TX Gov: Dramatic Course Correction Coming To Texas Schools. Aired 9:30-10a ET

Aired September 19, 2025 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[09:30:00]

(COMMERCIAL BREAK)

KATE BOLDUAN, CNN ANCHOR: Happening right now, the opening bell ringing on Wall Street. Stocks closed at record highs yesterday following the Federal Reserve's decision and announcement to cut interest rates for the first time in nine months, also known as cut -- first time the rate -- first rate cuts since Donald Trump's second term began. The rate cut also rippling through the housing market, sending mortgage rates lower.

Joining me right now to talk about this and what it all means is Art Hogan, Chief Market Strategist at B. Riley Financials. We need your help, Art, because a lot of this -- there's a lot of data points and not a lot of it makes sense to the -- to the average Joe. All three indices, let's start there, ended at record highs yesterday. Why?

ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY FINANCIALS: Well, a couple of reasons. I think the biggest of those reasons is we've been waiting for interest rates to come down a bit, and the yield on the U.S. 10-Year has moved its way from 4.7 percent down to 4 percent so that's a positive for businesses and businesses borrowing.

And clearly, the fact that the Fed is comfortable enough at this juncture to cut their Fed funds rate and it's something we've been waiting for since last December, clearly speaks to the fact that they're comfortable enough with their inflation mandate, meaning they know inflation is above their target, but are more concerned about their full employment mandate in the labor data.

Has certainly gotten soft since July so I think the market is really celebrating a couple of things, an artificial intelligence revolution and a favorable interest rate environment that is just starting.

BOLDUAN: Talk to me about what role Nvidia is playing in all of this.

HOGAN: Well, it's the largest publicly traded company in the world, so it's playing a very large role. It's certainly gone through an evolution from being a chip that was needed for gaming, and then a chip that was needed for Bitcoin mining, and now a chip that is essential for the compute power you need to develop large language models and artificial intelligence. So that continues to be the driver. But it's not just Nvidia anymore.

So you're seeing that broad map to companies like Oracle in software and Broadcom and other chip related stocks. So it's not just the Mag Seven anymore. I think that's important that this market continues to see beneficiaries of this artificial intelligence revolution. I think that will continue to broaden out.

BOLDUAN: Yeah. So then there's the other side of this, which is the bit of the confusing bit. The Consumer Sentiment Survey that I always look at from the University of Michigan. That fell unexpectedly this month. As inflation is on the rise, job prospects are worsening. How does that line up then? Wall Street is feeling really good. American consumers not feeling very good.

HOGAN: I think you have to look at what consumers are doing versus what they're saying. So there's always a bit of an offset. We just got great retail sales for the month of August, and yet, in the month of August, the University of Michigan said consumers felt terrible. So there's a difference between what you will say when I ask you a question and what you will do when you get to the mall.

And I think that continues to be the case. So retail sales are running above estimates for this year thus far. Yes, there is -- there is concern by the consumer, and certainly should be, whether it's reflected in the University of Michigan survey or the Conference Board Consumer Confidence Survey. But I think that incrementally gets better as we get to the other side of this trade war, which is really hampered confidence and certainly hampered a lot of decision making.

BOLDUAN: Definitely added a lot of uncertainty, which we know is never a good thing for anybody. One thing that people always look to with -- with any interest rate cut is, of course, the impact on mortgage rates. And mortgage rates now haven't been this low in I think nearly a year is where we are at this. What does -- what's the outlook here? What do you -- make sense of it for me.

HOGAN: So the mortgage rates are loosely tied to the 10-year, the longer end of the Treasury curve, and right now, that sits at about 4 percent and yet the -- the new low in the mortgage rate, the 30-year conforming is about 4.3 percent so the difference between the yield on the 10-year and the -- the 30-year conforming usually is about one and a half percent.

So right now, we need to see some mean reversion there. We suspect the yield on the 10-Year will work its way down to three and three quarters by the end of this year. And if you had a normal one and a half percent difference between that and the 30-year conforming, you'd probably see a mortgage at about five and a quarter.

And I think that would drive a lot of existing home sales, which we just haven't seen. We've been in an ice age in terms of existing home sales coming onto the market, but get a four percentage point off of that 30-year fixed mortgage and I think a lot of folks that are in their home at mortgages at or about 4 percent will say that's close enough for me. I'm finally putting my house on the market, and that will solve a lot of that affordability that we were seeing in housing. We just need more supply.

BOLDUAN: Yeah, the thaw is what is needed right now, for sure, from that ice age. It is great to see you, Art. Thank you, as always, for jumping on and helping us make sense of it all. Still ahead for us, the mystery of a 3000-year-old Pharaoh's bracelet stolen from a museum has now been solved.

[09:35:00]

(COMMERCIAL BREAK)

BOLDUAN: Security is ramping up for Charlie Kirk's funeral, which is set for this Sunday. Now this service has a level one security designation, which is what big events like the Super Bowl receive. As those preparations continue, the fallout is growing over the pressure that has been seen to crack down on how people are talking about Charlie Kirk and what happened in his murder and the reaction to it.

[09:40:00]

How they're talking about it online. Just take Texas now as an example. Texas Teachers found posting about Charlie Kirk are now under investigation. Texas Governor Greg Abbott announcing on Monday this. The Texas Education Agency is investigating Texas teachers whose actions called for or incite violence following the Charlie Kirk assassination.

Those educators, more than 100 will have their teacher certification suspended and be ineligible to teach in a Texas public school. Now, local reports actually have the number of investigations that have already been launched at north of 280.

Joining us right now is the Democratic State Texas State Representative, James Talarico. He's also running for U.S. Senate. Thank you for being here. This what we're seeing from the State Education Agency. The commissioner also said he wanted -- the way that he has described it is he wants the school superintendents to report instances of inappropriate content being shared online related to the assassination. What -- you're a former public school teacher, what is your reaction to this?

STATE REP. JAMES TALARICO (D-TX): Yeah, before I was a politician, I was a Texas public school teacher, and I know Texas school teachers are doing incredible life changing work all over the state every day, and tensions are running high in our country right now.

All of us experienced a national trauma last week, and so there's a lot of tension, and the temperature is rising. We need our leaders, whether it's the president or the governor, to lower that temperature, not raise it. And you know, I'm a -- in addition to being a former educator and now a candidate for office, I'm also a pastor in training. I'm a student at our local seminary.

And I think, in my tradition, the idea of grace is really important right now on all sides. Again, we are all feeling a lot of things, and it's important when that kind of temperature is rising that we take a moment to give each other grace on both sides.

BOLDUAN: What do you think -- what do you think the impact will be of these investigations? Because what -- the way I'm looking at it is -- in reading this is these investigations into educators, they could be fired, they could have the certification suspended and then deemed ineligible to teach. And there's already been reports of school districts disciplining employees for social media comments -- comment -- commentary, including at least two firings I saw.

TALARICO: Yeah, this is particularly troubling in Texas, because we have a crisis with not having enough certified teachers in the classroom, and so I worry mostly about the impact on our kids, who desperately need certified, experienced teachers giving them the content they need to succeed in -- in school and in life. That should be our main priority, not playing politics with a national tragedy.

BOLDUAN: You also have something else I was just learning more about is the President of Texas A&M is just announcing that he's resigning. His last day is actually today. This is over criticism that he faced for handling a fight on campus over children's literature, a children's literature course that recognized more than two genders.

The way it played out is he ultimately did fire the lecturer, facing pressure from Republican lawmakers in the state, including the governor, but then he faced backlash from the same Republicans that he didn't act fast enough, and also from others who said that in doing so, he was compromising academic freedom. Do you think he needed to resign?

TALARICO: You know, I think the focus here in Texas and across the country needs to be on the basics of teaching our kids, whether it's in the K through 12 arena, or whether it's in the higher education arena. There is way too much politics in our education system.

I remember growing up in Texas public schools and going to a great Texas public university, and I was grateful that the educators in those positions and the lawmakers in the state capitol were primarily focused on my education, not playing politics, not canceling people, not censoring free speech. I think we got to get back to those basics if we hope to do right by our students.

BOLDUAN: But I don't think I heard your take, though. Do you -- do you who is playing politics in this? Do you think that the President of Texas A&M should have resigned? Do you think that lecturer should have been fired?

TALARICO: Well, I think what you're seeing is that some of the most powerful people in our state, in our country, those in elected office, those in high government positions are using their power to go after folks who you know are -- are on the opposite side politically. And it's to score points.

[09:45:00]

It's to rile up their political base, rather than again, trying to make sure that we're all doing right by students and focusing on education in K through 12 or in higher ed.

BOLDUAN: Combine all of this and what is happening in Texas with what is happening more broadly, when you look at Jimmy Kimmel and the attacks now on free speech in a different way. John actually asked the question perfectly last hour. How are you feeling about free speech today?

TALARICO: Well, I'm against cancel culture, whether it's from the left or the right, but this is the worst kind of cancel culture, the kind that comes from the top. Corporate media executives are selling out the freedom of speech to curry favor with corrupt politicians and those billionaires and those politicians, they want the left and the right fighting over what a late night comedian said, instead of noticing that those very powerful people are controlling who has the right to say anything.

And so I think a threat to anyone's First Amendment rights is a threat to all of our First Amendment rights, and if we allow the most wealthy people and the most powerful people to take down what any of us say, they're going to come for all of us eventually, regardless of our party.

BOLDUAN: Texas State Representative, James Talarico, I appreciate your time. Thank you so much for coming in. John.

JOHN BERMAN, CNN ANCHOR: All right, a drug bust on the high seas. Wait until you hear how much cocaine the feds say they seized. And a short time ago, a couple of researchers told me they think artificial intelligence will kill us all. Stay tuned to find out if we make it through the break.

(COMMERCIAL BREAK)

[09:50:00]

(COMMERCIAL BREAK)

BERMAN: All right. New video shows New York State Troopers responding to a car crash on the highway. Police say the driver was injured and could not move. Moments after they pulled him out, the car just went up in flames. Police say the driver hit a deer. Boy, can that happened in upstate New York? Lost control and then ultimately hit a tree. The man fractured both ankles and injured his face.

Video released from the Department of Homeland Security shows members of the Coast Guard jumping onto a boat suspected of being involved in narco-trafficking. DHS says operation Pacific Viper has resulted in the arrest of nearly 60 people for suspected drug trafficking since early August. More than 75,000 pounds of cocaine have been seized from the drug enforcement operation. That's according to DHS.

A 3000-year-old gold bracelet belonging to an Egyptian pharaoh, you can imagine how priceless that thing was. I say was because it was stolen from a Museum lab, which set off a chain of events that ended with it being melted down and the gold sold for a mere $4,000. The suspects were arrested, and the proceeds from the sale, just 4000 bucks were seized.

Now if that doesn't cheer you up, this will. A short time ago, I spoke to a couple of researchers who have a new book out that says of artificial intelligence, if anyone builds it, everyone dies. Why Super-Human A.I. will kill us all? Listen.

(BEGIN VIDEO CLIP)

ELIEZER YUDKOWSKY, FOUNDER & RESEARCH FELLOW, MACHINE INTELLIGENCE RESEARCH INSTITUTE: If we go up against something much smarter than us, thinks faster, better technology, doesn't typically care about us one way or the other, it's not going to be a fight. It's going to be a short death.

NATE SOARES, PRESIDENT, MACHINE INTELLIGENCE RESEARCH INSTITUTE: We've seen A.I.s resist shutdown. We've seen A.I.s notice when they're in training and change their behavior when they notice they're being tested. We've seen A.I.s cheat on problems that they're given and otherwise behave in ways no one asked for, no one wanted.

(END VIDEO CLIP)

BERMAN: No one asked for, no one wanted, like killing us all, which is the premise of that book. With me now, CNN Chief Data Analyst, Harry Enten.

HARRY ENTEN, CNN CHIEF DATA ANALYST: Hey John.

BERMAN: People worried about artificial intelligence?

ENTEN: You know, I've been watching a lot of Terminator recently and Terminator 2, two fine films, they scare me. And apparently a lot of Americans are worried about A.I. I mean, increased use of A.I. in daily life makes me more concerned, more excited. You go back to 2021 what did we find?

We found 37 percent said more concerned. 18 percent said more excited. The rest were a mix, split between those who were both fearful and also excited. But jump ahead to 2025, look at that. That more concerned figure, up like a rocket, up to 50 percent now. More excited, look at this already just down at 10 percent, that's a drop nearly in half. And the bottom line is, the more that people learn about A.I., the more that they are concerned about it, perhaps because they're watching segments like we had earlier today that scares the bejesus out of.

BERMAN: What specifically are people worried about?

ENTEN: Yeah. What are they worried about with A.I.? All right, Plurality say that A.I. will make us works -- worse at, thinking creatively, 53 percent. How about forming bonds with others? John, nice to see you, right?

BERMAN: Nice to see you.

ENTEN: Nice to see you as well. See that's human on human contact. 50 percent say that. Make tough decisions, 40 percent say that. How about solve problems? 38 percent. Though I will say that ChatGPT has oftentimes helped me solve problems like, should I have Burger King or McDonald's for lunch? So I'm not necessarily sure about that, but the rest of it, I am in fact, I do agree with a lot of folks being worried about especially that forming bonds with others. You can't be friends with A.I. folks. They're not actually real friends.

BERMAN: Now you tell me.

ENTEN: I know.

BERMAN: I mean how integrated is A.I. into our lives?

[09:55:00]

ENTEN: Yeah, OK, this, I think, is the fun sort of giveaway with all of this. OK, so Americans' A.I. usage in the last week think that they have used A.I. as John Berman heads away from me, 36 percent but the percentage that have actually used A.I., 99 percent of Americans have actually used A.I. because it's so integrated into our lives. It's the navigation systems. It's personal assistants like Alexa.

So the bottom line is A.I. is already entrenched in us. The question is, will it become entrenched even further, guys? And it's nice being friends with you on this wonderful Friday.

BERMAN: I have to say that is chilling and Harry, as we're talking about --

BOLDUAN: Him saying that he's happy to be friends with us is chilling?

BERMAN: Absolutely, to the core, to my core.

ENTEN: Yeah.

BERMAN: Harry, I didn't know if you knew this, but today is National Talk Like a Pirate Day.

ENTEN: Er.

BERMAN: There we go.

BOLDUAN: You knew. I mean, you took the bait. Thank you so much for joining us. And the best breaking news. Monday, Sara Sidner returns to CNN News Central. The Situation Room is up next.