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Trump Says No Talks With Iran Until Crackdown Ends; Minnesota Democratic Senator Willing to Withhold Vote on Key Funding Bill in Congress Over ICE Restrictions; Inflation Remained at Higher-than- expected 2.7 Percent in December; Unrest Ongoing in Minneapolis in Wake of Deadly ICE Shooting; Minnesota & Illinois Sue Trump Administration Over Surge in ICE Operations. Aired 1:30-2p ET

Aired January 13, 2026 - 13:30   ET

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

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[13:33:28]

BORIS SANCHEZ, CNN CO-ANCHOR OF "CNN NEWS CENTRAL": President Trump now switching up his diplomatic tone on Iran. Today, he said he's canceled any meetings with Iranian officials until the government in Tehran ends its deadly crackdown on protesters. This after he said Sunday that he was open to talking with the regime and that a meeting was being set up.

Keep in mind, a U.S.-based rights group reports nearly 1,900 protesters have been killed in Iran over the past two weeks. This morning, on Truth Social, Trump encouraged Iranians to continue demonstrating, posting this message. "Iranian patriots, keep protesting. Take over your institutions." And listen to this, "Help is on its way."

Today, the president is also set to discuss options with his senior national security team after threatening military strikes against the Middle Eastern nation. Joining us now is Congressman Jason Crow of Colorado, a member of the House Armed Services Committee. Congressman, thank you so much for sharing part of your afternoon with us.

I do want to play for you some sound of President Trump, who's touring a Ford plant in Dearborn, Michigan, and he was asked about that remark regarding help being on the way. Listen to this.

(BEGIN VIDEO CLIP)

DONALD TRUMP, (R) PRESIDENT OF THE UNITED STATES OF AMERICA: -- United States and their truck business went through the roof.

UNIDENTIFIED FEMALE: You said to Iran this morning that help is on the way for protesters. What did you mean by that? What kind of help?

TRUMP: You're going to have to figure that one out, I'm sorry.

UNIDENTIFIED MALE: How many people have been killed in Iran?

TRUMP: Nobody has been able to give me an accurate number. (END VIDEO CLIP)

SANCHEZ: As you heard there, Congressman, the president refusing to expand on this notion that help was on the way, ostensibly from the United States, though in what capacity still remains nebulous.

[13:35:00]

What do you make of the president's messaging?

REP. JASON CROW, (D-CO) HOUSE ARMED SERVICES COMMITTEE: I stand, Boris, with the Iranian people who are yearning to be free and to have a democracy. I mean, they are victims of this brutal regime of terror that has oppressed the Iranian people, committed acts of terrorism throughout the Middle East and the world, killed American soldiers. So, there's no doubt that the Iranian people are pushing back against that and we support them.

The unfortunate thing here is that Donald Trump has spent the last year dismantling and defunding the soft tools that we have, America has, to support people in exactly this type of situation, to help people communicate, to give people access to VPNs so they can access the outside world, to help folks organize. All of the infrastructure that State Department and other organizations that we have built over decades to support people who are pushing for freedom and democracy and organizing and mobilizing, this administration has largely dismantled.

So we are left with a hammer, and as the old saying goes, if all you're carrying is a hammer, then every problem looks like a nail. So I'm really afraid that this president is going to resort to military force once again, because he doesn't seem to see a problem that he doesn't think he can bomb his way out of.

SANCHEZ: You're speaking, of course, to the crackdown by the regime in Tehran on the ability for residents there to access the internet, and to get video and information about what's happening to the outside world, and also to organize themselves. I wonder if you think that would be enough, having the U.S. support either the ability through Elon Musk's satellites to get internet to Iran or to expand the availability of VPNs to upend the Iranian regime. Should that be a goal of U.S. foreign policy?

CROW: Well, the goal of U.S. foreign policy should be to support people who are fighting for democracy and freedom, and mobilizing and organizing to do that. And there are ways, less than going to war with a country to do that, right?

The United States of America, the American people and the Iranian people are not served by the United States going to war with Iran. Donald Trump has already once in the last year bombed Iran without congressional approval. He's bombed, in fact, seven different countries in less than a year.

He seems to resort instantly to military power and that's not in the interest of the American people. And frankly, the American people are over using the military as a first line of defense instead of a last. They want health care. They want affordable housing. They want infrastructure. They want to be able to afford their daily lives. And they just don't want the United States out bombing everybody all the time. So Americans are over it. I'm over it, as somebody that was sent to war three times for this country

Frankly, I bristle as a three-time combat veteran whenever a five-time draft dodger like Donald Trump bangs the war drums and talks tough.

SANCHEZ: Congressman, I do want to pivot and ask you about a domestic issue, specifically immigration enforcement. Your colleague, Congresswoman Ilhan Omar, saying that she was denied access to this ICE facility near Minneapolis, the center, the epicenter of this huge rift within the United States about ICE operations and how far they've gone.

So her saying that she was blocked from accessing this facility comes after Secretary Noem issued a directive barring lawmakers from these visits without giving a week's notice. You actually sued the Trump administration last year over a similar policy, and you secured a temporary block. Does this new directive just ignore what the judge ordered?

CROW: Yes, it does, actually. One of the things that I'm most proud of, Boris, is I represent one of the most diverse districts in this nation. Nearly 20 percent of my constituents were born outside of the United States. We are a community of immigrants and refugees. I represent Aurora, Colorado, which is a global city. That's what we call ourselves because we have so much diversity, and these folks are our business owners. They're our friends.

They're our neighbors. They are a part of the fabric of our community, and we have been victimized by this administration and by the rogue agency that has become ICE under this administration. The killings of folks, the arrests of U.S. citizens, the harassment, the intimidation, I've had enough of it.

I have a detention center in my district. I have been repeatedly denied access to that detention center. That's why I sued the Department of Homeland Security. I will continue to do that. We're going to press that lawsuit. We're going to look at every avenue to try to stop this runaway agency.

SANCHEZ: Congressman, I know you only have a few seconds, so I'll make this quick. Some of your colleagues want to fold policy changes to ICE as part of the upcoming funding fight for the government. Would you support shutting down the federal government to change ICE policy?

[13:40:00]

CROW: What we need to do is make sure that we stop this runaway rogue agency. We look at appropriations to do that. We look at law to do that. There are a variety of ways we can do that, but it is getting worse, not better. This administration is reckless. They're lawless.

They operate with impunity. Even when courts issue rulings, a third of the time they ignore it. So, yeah, I'm over it, and I'm willing to look at all options to stop this agency that is terrorizing in so many places, our communities, our neighborhoods, and the American people.

SANCHEZ: Congressman Jason Crow, thank you so much for the time.

CROW: Thank you.

SANCHEZ: Of course. So President Trump, again, is in Michigan, where he's about to deliver a speech on the U.S. economy after renewing pressure on Fed Chair, Jerome Powell to lower interest rates. We also got some news about inflation. We'll tell you about it after a quick break.

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[13:45:33]

BRIANNA KEILAR, CNN CO-ANCHOR OF "CNN NEWS CENTRAL": Just moments from now, President Trump will deliver a speech on the economy at the Detroit Economic Club, and it comes hours after new inflation data was released that shows consumer prices remain stubbornly high at 2.7 percent at the end of 2025, with monthly prices up 0.3 percent, and many Americans still struggling to afford everyday basics.

Government figures show price gains being led by increases in the cost of food and shelter. Electric bills are also up for many Americans. President Trump giving his take on the inflation report with this post on Truth Social, where he says, "Just out, great. Low inflation numbers for the USA. That means that Jerome too late Powell should cut interest rates meaningfully. If he doesn't, he will just continue to be too late. Also out great growth numbers. Thank you, Mr. Tariff."

With us now is Arthur Laffer, Founder of Laffer Associates. He was Economic Advisor to President Reagan and was also Donald Trump's Economic Advisor during his 2016 campaign.

Arthur, great to have you. Do you think the Fed should cut rates?

ARTHUR LAFFER, FOUNDER, LAFFER ASSOCIATES, FORMER ECONOMIC ADVISOR TO PRESIDENT REAGAN: Thank you, Brianna. Yes, I do. I think inflation is going to be coming down quite substantially over the next couple of years, and with a new head at the Fed, I think it's going to be really in good shape, frankly. That's where I come out.

KEILAR: So inflation has dipped a bit since Trump took office. It is still above 2 percent, but generally cutting rates is associated with rising inflation.

LAFFER: Yes. Well, you know, what we really need to do is get that rate down below 2 percent. I know 2 percent is their target and their goal, but, you know, from 1776 until 1913, prices didn't change for a century and 40 years. I mean, there's no reason why we have to tolerate inflation of any sort.

We need to go back to a price rule and get it stable, and those numbers have been coming down from the last administration, and I expect they'll be coming down a lot more. If Kevin Warsh or Kevin Hassett are the choices, I know them both very, very well, and they're both really excellent and would be terrific as Chairman of the Federal Reserve Board.

KEILAR: Perhaps standing in their way could be confirmation if this investigation of Jerome Powell continues. That's according to some Republicans on the Hill, right? Have you spoken to the president recently? What would your advice be to him on Jerome Powell in this criminal investigation?

LAFFER: Well, I'm not an expert in criminal investigations at all, so I'm going to dodge that question. I just don't really know.

But what I do think is that Powell has not done a good job as Fed Chairman, and under his whole tenure, we've had very, very high inflation. And you know, he's just not trained for it, honestly, Brianna. I mean, he's a lawyer, he's a banker, he's not an economist, and he hasn't done a good job. And I think we need a new Fed chairman and forgive me for not talking about the criminal aspects of this, but on a professional level, he's not been accountable and he hasn't done a good job.

KEILAR: Well, Arthur, a lot of people don't think it has anything to do with a real legal claim here. They think that this is about pressure.

LAFFER: Yeah.

KEILAR: So if we operate in that space, let's take the legal question out of it. There's been a lot of pressure from the president on the Fed, which is supposed to be independent. The president is not supposed to meddle. Certainly he may have his wishes and his desires, but he's constantly pressuring and insulting. What would you say to him about that kind of pressure on what is supposed to be and what is so valuable to be an independent Federal Reserve?

LAFFER: Yeah, I think the concept of an independent Federal Reserve makes no sense whatsoever. I mean, if inflation comes by and other things happen, the president is going to be held accountable and the Fed should be accountable to someone somewhere. And I think like the Defense Department or the Labor Department or any of the other branches of the government, they should be under the administration's control, whether it be Democrat or Republican. I don't know of any administration that hasn't put pressure on the Fed to do this, that, or the other.

I was in the White House from 1970 to '72 when everyone was trying to pressure Arthur Burns to cut interest rates, and it's true with Democratic administrations. Frankly, the president and the administration bear the consequences of high inflation, and they should be held responsible for it. And this type of independence and unaccountability, it doesn't really make sense to me or anyone who knows how to really run a system.

[13:50:00]

They've got to be responsible for what they're held responsible for. That's all.

KEILAR: A lot of people who certainly do know a lot about the Fed have concerns and disagree with you on that point.

LAFFER: Yes.

KEILAR: They're actually very worried about the long-term effects, right?

LAFFER: I know.

KEILAR: They're very worried that this actually could spell economic calamity if you have a Fed that is not independent. You're saying no big deal. What do you say to those folks?

LAFFER: No, I'd say the other way around. If you don't have a Fed that is run by the administration, a monetary policy run by -- you're going to have real problems. From 1913 until the present, which we've had the independent Fed coming in and government-controlled money since then, the price level has risen 35-fold, Brianna. I mean, a dollar today is about 1 percent of what it was worth in 1913.

That's just a very, very bad monetary policy. If you look at the price of gold, if you look at cryptocurrencies, all of these are taking off because of the Fed's mishandling of monetary policy. We really need to go back to a price rule the way Paul Volcker did it back in the day of really stabilizing the price level, not at 2 percent, but at flat.

And we need to know what the value of a dollar is going to be two years from now, five years from now, 10 years from now, so we can write contracts in U.S. dollars and not worry about what that dollar is going to be worth then. And that's the way it should be. And if there are disagreements, I'd be happy to debate these people, but I don't think an independent Fed has worked out very well at all.

KEILAR: Arthur Laffer, thank you for being with us.

LAFFER: Thank you, Brianna. Appreciate it very much.

KEILAR: Tensions continuing to flare between residents and federal agents in Minnesota. We're live from Minneapolis with the latest next.

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[13:56:30]

SANCHEZ: Protests are again escalating today in Minneapolis. Just a short time ago, federal agents deployed pepper spray and flashbangs as they were clashing with a crowd. In the wake of last week's deadly ICE shooting, two states, Minnesota and Illinois, are now suing the Trump administration.

KEILAR: Both lawsuits allege federal agents have terrorized cities and accused them of using unlawful tactics. President Trump earlier attacked the lawsuits on social media, ending his post with this message from Minnesota, "The day of reckoning and retribution is coming." CNN's Ryan Young is in Minneapolis. Ryan, walk us through some of the unrest that you're seeing.

RYAN YOUNG, CNN SENIOR NATIONAL CORRESPONDENT: Yeah, Boris and Brianna, this played out right in front of us. We were on this intersection and we heard the whistles from the crowd that signaled that ICE was in the area, and then we saw a surge of people actually go running down the street here and we sort of followed behind them, and what we saw next was people who were jostling with agents. There were more than 100 agents in this area at that point.

We'll show you some of the video. They were taking folks into custody and at some point, people tried to use their bodies as a physical barrier. They were also banging on the cars of the agents as well. When that started happening, pepper balls started to be sprayed in the area. Flashbangs were going off. Something else that we noticed, when they were spraying the agents in the air, sometimes they weren't just hitting the protesters.

Agents were actually spraying other agents, so we saw them trying to retreat and pull those agents back from the fight that was going on. We did see several people being detained forcefully, multiple agents on top of them as they were being arrested. At the same time this was going on, we saw people running through the alleyways who were trying to escape whatever operation was going on here.

We do believe this might have been a targeted operation, and they were going after someone. No one will explain to us who they may have been going after, but it is something that we witnessed throughout the afternoon here with all those agents. And then at that point, after traffic was all backed up, they tried to pull out of here and the crowd made it very difficult for them to leave. At this point, that's the last time we've seen that heavy sort of interaction in the last hour and a half or so.

SANCHEZ: Ryan, walk us through what you've learned about these lawsuits.

YOUNG: Well, that's a big conversation here, Boris. As you can imagine, neighbors and the people who have been standing right here talking about the presence of these border agents here wanted to see the city and the state fight harder. They say they want them to fight harder because of pictures like this. You see this right here. These are up all over the place.

They obviously have put Renee's name and face all over this. They believe this is an invasion. That's their words, not my word. They believe that the fact that the federal government's doing so much here to disrupt this entire community, when you think about it, the police department here has about 600 officers.

We now believe that the federal agents outnumber the local police departments, and at the same time, every time there's a surge, people are calling 9-1-1. They've already spent millions of dollars in overtime to handle the situation here.

But what they do believe is that Tenth Amendment and the First Amendment has been violated. They want to see some action in court. That's what local lawmakers are doing. But the people in the streets are also calling for some action because they say they want ICE to leave.

SANCHEZ: Ryan Young, thank you so much for that reporting. We actually want to go straight to CNN's Whitney Wild because we have some Breaking News into CNN.

Three federal prosecutors in the state of Minnesota have resigned, Whitney, after more than a week of pressure from the Trump administration to focus the probe of the ICE officer shooting of Renee Good on the actions of Good --