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V.P. Vance: Waltz's New Role Could Be a 'Promotion'; The Rise of 'Buy Now, Pay Later' Financing. Aired 6-6:30a ET

Aired May 02, 2025 - 06:00   ET

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

AUDIE CORNISH, CNN ANCHOR: Good morning. It's Friday, May 2. And here's what's happening right now on CNN THIS MORNING.

[06:00:34]

(BEGIN VIDEO CLIP)

J.D. VANCE, U.S. VICE PRESIDENT: So, he wasn't let go. He's being made ambassador to the United Nations.

(END VIDEO CLIP)

CORNISH: So, there's a shakeup going on. President Trump ousts Mike Waltz as national security adviser and now wants him at the U.N. What's behind the sudden move and what it means for the nation's defense strategy.

(BEGIN VIDEO CLIP)

EDWARD CORISTINE, DOGE STAFF MEMBER: There is no accounting of what payments actually go to in the payment computer.

(END VIDEO CLIP)

CORNISH: With Elon Musk heading back to Tesla and leaving the White House, what will DOGE look like now?

And forget about GDP. The real indicator that matters, the April jobs report, well, that comes out today. How have the Trump tariffs affected job growth?

Plus, this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: My payments were $1,250 a month. On Affirm and Klarna, that is.

(END VIDEO CLIP)

CORNISH: As more people shift to buy now and pay later services for everyday expenses, what does this mean for the U.S. economy?

And a look ahead to that long-awaited Sean Combs trial. What he told the court yesterday about a plea deal that the prosecution has offered.

It's 6 a.m. here on the East Coast. A foggy sunrise in New York. Good morning to all of you. I'm Audie Cornish, and I want to thank you for waking up with me.

So, we're going to start with a little bit of White House H.R. The so- called "promotion" of Mike Waltz. He's been removed from his post as President Trump's national security advisor.

Instead, he'll be nominated for the role of ambassador to the U.S. Secretary of State Rubio will take over as national security advisor, at least for now.

It was Mike Waltz who mistakenly added a journalist to a Signal chat where military plans were being discussed in March. And then, Waltz was just photographed appearing to use Signal during the president's cabinet meeting this week, one day before his removal.

(BEGIN VIDEO CLIP)

BRET BAIER, FOX NEWS ANCHOR: Why was Mike Waltz let go?

VANCE: So, he wasn't let go. He's being made ambassador to the United Nations, which of course, is a Senate -confirmed position. I think you can make a good argument that it's a promotion.

Donald Trump has fired a lot of people. He doesn't give them Senate- confirmed appointments afterwards.

(END VIDEO CLIP)

CORNISH: So, the administration is sticking to that argument. They're also downplaying the use of Signal by the president's team.

The White House communications director saying, "Signal is an approved app that is loaded onto our government phones."

Joining me now in the group chat on a Friday, Kevin Frey, Washington correspondent for Spectrum News, New York One; Rob Bluey, president and executive editor of "The Daily Signal"; and "New York Times" journalist and podcast host Lulu Garcia-Navarro.

So, this is one of those things where when you exit a job, which I feel like is the safest term I can use right now is like, is it a promotion? Is it a lateral move? Is it a demotion?

And a lot of this has to do with the fact that, like, what -- what does a Trump administration think of the U.N.? Right? Like, this isn't exactly --

LULU GARCIA-NAVARRO, CNN CONTRIBUTOR: Well, it's a demotion. There's nothing else to --

CORNISH: OK. Lulu's --

GARCIA-NAVARRO: -- say here, other than that. CORNISH: -- in the chat. She says demotion.

GARCIA-NAVARRO: Let's be -- let's be clear. This is our job as journalists to call things as they are. Not a --

CORNISH: But it's not a firing, which clearly the White House did not.

GARCIA-NAVARRO: It's not a firing. But the U.N. job is not exactly like primo territory. It's also Senate-confirmed. And I have to say, Democrats are rubbing their hands in glee, because they want to get Waltz sitting in front of them to be able to grill him. So, there's going to be a spectacle there.

CORNISH: You mean we're going to keep hearing about Signal chat forever?

GARCIA-NAVARRO: Yes. This is not -- this is not --

CORNISH: Rob Bluey.

ROB BLUEY, PRESIDENT AND EXECUTIVE EDITOR, "THE DAILY SIGNAL": Yes.

CORNISH: Demotion, promotion, lateral move?

BLUEY: Probably more of a lateral move or demotion. I think it's a stretch to call it a promotion.

Conservatives, as you know, have long disliked the United Nations. I mean, it's not necessarily a place that you aspire to go.

But I do think that there's something here at play beyond Signal. And I think that there was probably misalignment between the national security adviser and Trump. This is what the MAGA --

CORNISH: The reporting there is between them and also Susie Wiles, right? That there was --

BLUEY: Sure, sure.

CORNISH: His power in the White House was wobbly.

BLUEY: But his -- his outlook at a time when Trump is taking a more restrained position when it comes to foreign policy, perhaps Mike Waltz was a little too hawkish, and that displeased some people within the White House.

CORNISH: Right. I think he was somebody who was talking about support for Ukraine. Right? Right in a moment where the White House wanted more negotiating room with them.

OK. So, you guys are joking about this gig. However, there are people who wanted this gig.

[06:05:03]

KEVIN FREY, WASHINGTON CORRESPONDENT, SPECTRUM NEWS, NEW YORK ONE: Yes.

CORNISH: People in New York.

FREY: Yes.

CORNISH: Other Congress people.

FREY: Yes. One in particular.

CORNISH: Yes, Kevin, give us the low-down.

FREY: Congresswoman Elise Stefanik already was clearly very frustrated, as has been reported multiple times over the week.

CORNISH: So, she was the initial choice for U.N. ambassador.

FREY: Was the initial choice for U.N. ambassador. Went through the confirmation hearing was basically on a glide path to getting confirmed, likely with bipartisan support in the U.S. Senate, which we know is not necessarily an easy feat nowadays.

And yet, because of the numbers in the House, she was basically asked to take one for the team -- at least that's how she's presenting it -- and stick around in the U.S. House of Representatives.

Keep in mind, she had --

CORNISH: So, pass-over one.

FREY: Pass-over one.

CORNISH: Now. Number two.

FREY: Well, I was going to say keep in mind, she has really spent the last five, six years being one of Trump's most outspoken defenders publicly on the national stage, going back to his first impeachment. She has latched himself [SIC] -- herself to him and really has seen her star power rise as a result of that.

So, she has really given a lot to the Trump camp. Now, she's been passed over for that.

She gets thrown back into the House of Representatives, still hasn't been added to the Intel Committee, because they don't know how to figure out how to get her on there. And she's been given kind of this obscure title that isn't really in the chain of command, but also is part of the chain of command as part of being part back in the House leadership.

And then you throw in one of the other Republicans that left the House to only tighten the margins further, which was why she wasn't allowed to leave anyway, is now going to get, potentially, the job that she was supposed to.

CORNISH: All right. So, the shock of all this is that I haven't had a version of this conversation about five other jobs, right? When you think about the first Trump administration, so many people passing out, that is just not the case this time around. It is a much more stable cabinet. He feels very strongly about the people he has in place.

President Vance [SIC] -- Vice President Vance was talking about -- was being asked about Pete Hegseth. Right? Because at the end of the day, he's the one who shared plans on this Signal chat. And here's what he had to say about whether the defense secretary's job is safe.

(BEGIN VIDEO CLIP)

BAIER: Is Pete Hegseth safe at defense secretary? Is -- are there other changes coming?

VANCE: Well, again, I think certainly, yes. Pete Hegseth is safe.

(END VIDEO CLIP)

CORNISH: Are we surprised?

BLUEY: I think Pete Hegseth is safe. I mean, Pete Hegseth, obviously, went through a contentious --

CORNISH: Is it because of his support within the party itself or Trump himself?

BLUEY: Oh, sure. I think -- I think both, Audie. I mean, I think that that's clear.

I think also, Pete Hegseth is clearly aligned with Trump and the policy agenda that he wants to see implemented. And also, the personnel side.

They've stood by Pete Hegseth not only through a very contentious confirmation process, but obviously, in the weeks that follow. And Pete Hegseth has shown some results. I mean, military recruiting is way up under Pete Hegseth's leadership.

CORNISH: Yes, it is.

GARCIA-NAVARRO: Wait a second. Military recruiting is way up. But it has been, you know, growing under the Biden administration. You know, this is not something that he can solely take credit for, even though he is taking credit for that. And even though the president is taking credit for that.

What I would say about Pete Hegseth is the following. I think he is safe. You're absolutely right. I think he's shown himself to be, like, utterly loyal. And that is what we're seeing in this new cabinet. Loyalty is what matters.

CORNISH: Is that why --

GARCIA-NAVARRO: Not results.

CORNISH: -- Marco Rubio now has four jobs? GARCIA-NAVARRO: Exactly.

CORNISH: OK. Just so people know. He's now -- he's secretary of state, acting national security advisor, acting USAID administrator, which is really kind of -- I mean, it's gutted. So, that's not much of a job. And then also acting national archivist.

FREY: But I do think that this relationship now between Rubio and Hegseth will be quite interesting. Remember, the national security advisor, in some cases, was a referee between the secretary of state and the secretary of defense. So, now that Rubio has both jobs --

GARCIA-NAVARRO: This has not happened, as we know, since the Nixon administration.

CORNISH: Oh, did John Bolton do this, though?

GARCIA-NAVARRO: No, not -- not have both.

(CROSSTALK)

GARCIA-NAVARRO: No, no, this is not literally happened since the Nixon administration, where you have the secretary of state also being the national security advisor. It was Kissinger, I think, who held those two roles. It was by all accounts -- I wasn't alive then -- disastrous.

And so, this is going to be very interesting. These are big jobs.

CORNISH: Yes.

GARCIA-NAVARRO: I don't know how -- you know. I mean, Secretary Rubio is a very smart man, very capable former senator. But these are big jobs. And so --

CORNISH: And now he is the one to watch.

GARCIA-NAVARRO: Yes.

CORNISH: Group chat, stay with me. We've got lots more to talk about.

In fact, coming up on CNN THIS MORNING, we're just days away from the papal conclave. And today, a new chimney rises over the Sistine Chapel, and all eyes will be on the color smoke, signaling the naming of a new pope.

And the focus so far has been about fluoride in the water. It's actually now shifting to toothpaste. We're going to talk about why the Texas attorney general is launching an investigation into that.

And we're going to look at the buy now, pay later services plans for pretty much anything. But what could make the "buy now" part even harder now?

[06:09:44]

(BEGIN VIDEO CLIP)

STEPHEN COLBERT, HOST, CBS'S "THE LATE SHOW WITH STEPHEN COLBERT": But the headline everyone is talking about is that retailers fear a toy shortage this Christmas. What are we going to give our kids? A single Rock-em Sock-em Robot?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[06:14:15]

CORNISH: It's now 15 minutes past the hour. Here's your morning roundup.

President Trump has signed an executive order to end federal funding for NPR and PBS. In a post online, the White House accused the broadcasters of spreading, quote, "radical woke propaganda."

The order also instructs the government to investigate NPR and PBS for possible employment discrimination.

We also have got this: British comedian and actor, Russell Brand, in court in London today. He was granted conditional bail following charges of rape and assault.

He has denied all the allegations.

And the Transportation Department here in the U.S., offering extra money to try to attract new air traffic controllers. New hires who go through the special training program would get $5,000. You get 10,000 if you go to locations that are harder to staff.

[06:15:07]

And the attorney general in Texas now investigating toothpaste makers. He's accusing them of illegally marketing their products in a way that could lead kids to use too much toothpaste and, as a result, take in too much fluoride.

This comes just after Florida lawmakers approved a bill that would make the state the second to ban fluoride in drinking water.

And still to come on CNN THIS MORNING, we're just hours away from another key indicator of how the president is handling the economy. The April jobs report is almost here. What impact have the tariffs and DOGE cuts had on hiring in America?

Plus, the Knicks knock off the Pistons with a clutch three-pointer. We've got the latest from the NBA playoffs.

Good morning, Seattle. Sunrise is still hours away. Of course, it's 15 minutes past 3 a.m. there, and it's 53 degrees.

(COMMERCIAL BREAK)

[06:20:19]

CORNISH: Going off-script here, because I have been wondering, like, how are people still spending in this economy? And it turns out a lot of you are putting everything from -- like, I don't know -- concert tickets to takeout on the modern-day version of layaway.

In a recent poll for LendingTree, nearly half the people surveyed said they've used buy now, pay later services. A quarter of those people said they've used the services to buy groceries.

Earlier this year, DoorDash announced it would partner with Klarna to offer people the option to pay for fast food in four interest-free payments.

Now, to help us make financial sense of this, Ramit Sethi, host of "How to Get Rich" and "Money for Couples."

I see your eyebrows up already, Ramit. You are -- I know you are not interested in this idea of using credit in this way. Can you talk about when the couples that come to you --

RAMIT SETHI, HOST, "HOW TO GET RICH": This is insanity.

CORNISH: -- It's --

SETHI: I'll just tell you.

CORNISH: What do you say to the couples who use this?

SETHI: Let's cut to the chase. This is freaking crazy. Just like me using my taxable retirement account to pay for Burger King. It makes no sense whatsoever.

I asked thousands of people last night on my social channels, what is their experience with buy now, pay later? The craziest thing. So, many people said, oh, I use it. I get an interest-free loan for six months. No big deal.

Then I asked him, tell me your disaster stories. The stories I got are absolute insanity. Somebody said it's like a credit card on steroids. Another person said, it's a credit card. You don't even remember what you bought. Now you're stuck paying $100 biweekly.

Also, you can get a bagel. No thank you.

CORNISH: The bagel is not enough for me. OK, I'm going to put that on the chyron for you.

What does it say to you about this economy? I mean, people -- you have the White House saying no, things are pretty good. Don't worry about it. But I feel like maybe these are part of the smoke signals of, like, maybe not so much?

SETHI: Well, first of all, we can disregard whatever the White House says about the economy. OK? I don't believe in propaganda. But secondly, I do think it says something about the economy. But I

also think that we, in our financialized world, the more we offer people easier ways to purchase things, the more people are going to do it. That's what human beings do.

If it's easy, we're going to take it.

CORNISH: All right. Oh, go ahead.

SETHI: Now, just because you can doesn't mean you should.

CORNISH: I think the thing is, people feel like this is their way, maybe, of getting to have the experiences they want, when they can't -- when other experiences feel like they can't achieve them. Right?

So, let's say like buying a house. Interest rates haven't moved in a way that would entice people. It's very difficult to do that savings. And that's the kind of thing I would think you would want to take on a lot of debt for.

SETHI: It really -- buy now, pay later really speaks to our -- the structural problems in our economy. The fact that housing is so incredibly expensive, not just because of interest rates, but largely because of a lack of supply, which trickles down all the way because of zoning issues.

The average person is not sitting here studying zoning. They don't understand Prop 13 and its relationship to housing costs in California.

What they see is I want to go on vacation or I want to buy this gadget. And this thing gives me a really easy way of doing it. Presumably, with six months' free interest. Why wouldn't I?

The problem is, it works until it doesn't. And when it doesn't, then you are in big trouble.

CORNISH: Ramit Sete (ph) -- Sethi, author of "Money for Couples." Incredible YouTube, of course, TV show on Netflix. Thank you so much for being here. Appreciate your time.

SETHI: Thank you.

CORNISH: So, still ahead on CNN THIS MORNING, close to the brink? Why U.S. officials are putting pressure on India and Pakistan to avoid a new conflict.

And Prince Harry fighting back. Why he calls changes to his security detail unfair.

[06:24:13]

(COMMERCIAL BREAK)

[06:29:06]

(BEGIN VIDEO CLIP)

JIMMY KIMMEL, HOST, ABC'S "JIMMY KIMMEL LIVE!": It's hard for Trump. You know, protesters making posters, using his beloved Sharpies against him.

But maybe if he hadn't fired all those people, they wouldn't be able to march at 2 p.m. on a Thursday afternoon.

(END VIDEO CLIP)

CORNISH: Thousands taking to the streets to protest President Trump and Elon Musk's firing of federal workers.

Good morning, everybody. I'm Audie Cornish. I want to thank you for joining me on CNN THIS MORNING. It's half past the hour. And here's what's happening right now.

In just two hours, the April jobs report will be released. Economists expect the unemployment rate to remain steady, but a disappointing jobs report could rattle markets already shaken up by this week's GDP report and tariff uncertainty.

Music mogul Sean Combs told a judge that he turned down a plea deal that the prosecution had offered in the charges against him.

His trial is set to begin Monday. He had pleaded not guilty to multiple charges, including sex trafficking.

And a high court in England will soon rule on a major.