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Laura Coates Live

Trump Rips Federal Reserve Board for Raising Interest Rates; House Adjourned Early, Staved Off Hegseth Impeachment Vote; Ed Sheeran's Opening Acts All Quit in Solidarity with Macklemore. Aired 11p-12a ET

Aired September 16, 2026 - 23:00   ET

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


[23:00:00]

BILL DE BLASIO, FORMER NEW YORK CITY MAYOR: You can't have tens of millions of people not getting health care. That's the bottom line.

LAUREN A. WRIGHT, ASSOCIATE RESEARCH SCHOLAR, LECTURER IN POLITICS AND PUBLIC AFFAIRS AT PRINCETON UNIVERSITY: So where are you going to pull it out of the sky? Yes.

BAKARI SELLERS, CNN POLITICAL COMMENTATOR: I think a country that cannot provide health care for its own people is on the wrong track, period.

We better try something different.

SCOTT JENNINGS, CNN SENIOR POLITICAL COMMENTATOR, FORMER SPECIAL ASSISTANT TO PRESIDENT GEORGE W. BUSH, SALEM RADIO HOST: You think we should raise some taxes? Because you were vehemently against tariffs earlier, but now you're for these taxes.

SELLERS: Raising taxes on millionaires and billionaires, absolutely.

JENNINGS: I'm trying to pin you down.

ABBY PHILLIP, CNN ANCHOR AND SENIOR POLITICAL CORRESPONDENT: All right, last one. I don't agree on any of Scott's policies, but I agree that the beard had to go. It's a thumbs-up for me.

JENNINGS: Let me address this.

PHILLIP: Quickly. We have five, two seconds.

JENNINGS: I started growing that when Senator McConnell went to the hospital, and I vowed to shave when he went back to work, and here we are.

PHILLIP: Okay. All right. That's that, everyone. Thanks for watching "NewsNight." "Laura Coates Live" starts right now.

LAURA COATES, CNN HOST AND SENIOR LEGAL ANALYST: Tonight, the setbacks pile up. Trump's hand-picked Fed chair goes against what the president wanted. And now, he's blaming the board for trying to make him look bad. Plus, looks like that impeachment push for Pete Hegseth won't happen before the midterms because Speaker Johnson just sent Congress home. Did he do it just to punt the vote? Plus, Ed Sheeran makes a new move after the opening acts of his tour dropped out in support of Macklemore. Is it going to be enough to quiet the controversy? That's all tonight on "Laura Coates Live."

My opening statement tonight, you know, President Trump can pick the people. He can even claim to know exactly what they're going to do. But once they're in the job, he can't pick their decisions. Saw that earlier this week, didn't we, with the justices that he put on the Supreme Court. And today, we're seeing it again. But this time, with the man he chose to lead the Federal Reserve, Kevin Warsh. The Fed just hiked interest rates. The decision? Unanimous. But Trump is still demanding rates go down, and he has his own explanation for what happened.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: I talked to Kevin, and I said, you might as well vote with the board because it's not going to matter. The board is very hostile. They're very political. They're raising the rates to -- they're raising the rates to make Trump do as bad as they can possibly do.

(END VIDEO CLIP)

COATES: It certainly doesn't sound like Warsh was just going along for the ride, considering he publicly defended the 12 to 0 decision as the right decision. And wait until you hear his reasoning for why he's backing the rate hike, especially compared to what the president has been saying.

(BEGIN VIDEO CLIP)

TRUMP: With the inflation, I've largely taken care of inflation.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

TRUMP: Inflation has been defeated.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

TRUMP: Inflation is way down. That means prices are coming way down, and we're doing a great job. Remember that for the midterms.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

KEVIN WARSH, CHAIRMAN, FEDERAL RESERVE OF THE UNITED STATES: For more than five years, inflation has been running above target. The plain fact is that inflation is too high and has been for too long.

(END VIDEO CLIP)

COATES: So, inflation, the issue Americans keep putting at the top of their list and squarely on Trump. In a new poll, nearly two-thirds think the president's proposals will make inflation worse. And even with inflation stubbornly high, Trump has been pushing for lower rates.

He repeatedly, as you know, attacked the former Fed chair, Jerome Powell, who he saw as not doing enough to lower them. And when he picked Warsh, he was talking like he finally found a Fed chair who agreed with him, who would want to do what he wanted, and would do what he wanted, except Warsh is making it clear the Fed makes its own calls.

(BEGIN VIDEO CLIP)

TRUMP: We're going to get your interest rates way down so you can buy the house, you can have the American dream.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

TRUMP: And I'll demand that interest rates drop immediately.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

TRUMP: With a proper, intelligent person at the Fed, that person will be able to work with us to get interest rates up.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

TRUMP: He certainly wants to cut rates. I've been watching him for a long time.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

WARSH: Part of the independence of the Federal Reserve is we stay in our lane. Independence is a two-way street. We'll let people that do trade policy and fiscal policy stay in their lane, too.

(END VIDEO CLIP)

COATES: Oh, and about Trump's promise to lower rates so you can afford a home, the Fed doesn't directly set your mortgage rate. But look what homebuyers are actually facing. The 30-year mortgage rate sits at 6.76 percent. That's the highest in more than a year. In other words, borrowing to buy a home in cheap. You can see how it has been trending this year, up and to the right, moving higher after the Iran war began. Well, tonight, you know what it calls for? Starting off with our

favorite economist, University of Michigan economics and public policy professor, Justin Wolfers. Glad to have you here, professor. I mean, look, Warsh blamed the hike on persistent inflation, stronger jobs reports, and intensifying geopolitical tensions like the war with Iran.

[23:05:01]

Will the rate hike be enough?

JUSTIN WOLFERS, PROFESSOR OF ECONOMICS & PUBLIC POLICY, UNIVERSITY OF MICHIGAN: No. First of all, Laura, I want to say, seeing you tonight, that's the first good thing that happened to me today. And I thought your open was absolutely on the money. Every word of it was true and every word of it was important.

Warsh raised rates. It was unanimous. So, this was a board that includes Biden, Obama, and Trump appointees. Every single one of them thought that was the right thing to do. Everyone on Wall Street thought it was the right thing to do.

There is not a person alive who thinks that reducing interest rates to one percent is even in the neighborhood of sane. It would be absolutely terrible. It would be wildly inflationary. It makes no sense whatsoever.

And this rate rise is almost certainly going to be followed by another one, maybe the next meeting, which is before the midterms, or maybe just after that. They're just getting started now.

COATES: Well, there's a contradiction, as you know. I mean, Trump says the U.S. has the best credit in the world, and he's imploring the Fed to -- quote -- "lower the interest rates and quickly or fast," the word he used. Indulge us for a moment here. What would happen, professor, if the Fed did that?

WOLFERS: Yes. So, what we'd have is inflation prints starting to get higher and higher and higher and higher. I think what the president likes is if he could knock the interest rate down, then our monthly tab, our monthly credit card paying down the national debt, would get smaller for a little while, and then he could splash some cash around the way he wants to.

But when you do that in an irresponsible way, we've seen this play in many, many other countries around the world, that starts to cause that inflationary spiral. The risk here is not that inflation bumps up to five or six or 10 percent, it's if you start to indulge utter nonsense, and that's what one percent interest rates would be, utter nonsense, that could lead to real trouble.

So, it was great to see Kevin Warsh today showing that he was facing reality. We live in a world with inflation. It has been measured by experts. You and I see it at the grocery store. And he's going to work in the best interest of the American people rather than his boss at 1600 Pennsylvania Avenue. COATES: You know, some critics thought that Warsh would fold under the pressure. Do you think that he is proving them wrong here or is this a matter of there was no alternative, as you say, that would have been logical and maintained any credibility?

WOLFERS: Boy, I am so glad I'm not Kevin Warsh today because he woke up this morning, and he had two choices. One of them was raise rates because it was the economically responsible thing to do. That's where the analysis leaves you. That led to a lot of anger from the White House and Pennsylvania Avenue.

The other possibility is he doesn't raise rates, at which point he's effectively publicly declared, I'm a sock puppet, I'm not serious, the United States does not have a serious central bank, hold on, this is the first step to ruin. That would have pleased the White House, but that would have caused a Wall Street meltdown. So, I think he chose -- he made the choice that was better for you and me and the viewers at home.

COATES: The president again tonight touted his proposal to give $5,000 to Americans if Republicans win in November, essentially that was the contingency. There was a new poll that found that 63 percent of Americans called that idea inappropriate. So, some might think, well, who says no to free money in this economy? But the numbers tell a different story. What does it say to you?

WOLFERS: Mate, it's not just inappropriate, it's innumerate. I mean, here's magical $5,000 for everyone. I wish I'd thought of that. If I had ambition, I would have gone to $10,000. I'm a dope, I never thought of it, but that's because I'm aware that the government is deeply in debt, running the largest deficit through the entire post- war period outside a recession or a war. This wouldn't get passed by any Congress, anyway. And I think people understand a very simple truth, the president is lying.

It's also kind of interesting. He's saying, you get $5,000 if and only if Republicans win the House and Senate. Is he saying if Republicans win the House and Senate, the economy is going to tank so badly, we'll need a massive stimulus? I'm confused.

COATES: Oh, an economics professor nuance burn. Oh, Justin Wolfers, thank you so much. Nice to see you.

(LAUGHTER) WOLFERS: Pleasure.

COATES: I want to turn to former vice chair of the DNC, David Hogg, CNN political commentator Karen Finney, and executive editor of the Washington Examiner, Bob Cusack. I mean, well, look, that's one way to turn it. Is that what you're saying to us tonight? I mean, when you think about that, I mean, Bob, the president is telling voters the Fed raised rates just to make him look bad.

BOB CUSACK, EXECUTIVE EDITOR, WASHINGTON EXAMINER: Right.

COATES: How does that square with the family sitting at their kitchen table wondering why, like, ground beef is 11 bucks a pound.

[23:10:02]

That's not even like the 90-10.

CUSACK: Right.

COATES: That's the 80-20. That's half done, cooked down. You've got gas prices that are ridiculous. I mean, how does that square with the strategy?

CUSACK: Well, Warsh did what he had to do. As you mentioned, this was unanimous. So, if he was going to go in the other way, he was going to be outvoted, and then he would look weak because he's chairman. So, he definitely did the responsible thing. But I tell you one thing, Laura, a lot of Republicans on Capitol Hill, they've got no heads up on the $5,000 idea.

COATES: Right.

CUSACK: They are so upset with what's coming out of the president's mouth, especially over the last couple months, as well as the convention in Dallas. Now, we all know the Republicans have bitten their tongue with Trump, but if this election keeps going like this and it's looking like it's going to be a bloodbath, there's going to be a civil war in the Republican Party after the election.

COATES: I thought the Democrats were the ones who were battling their own civil war. See? Now, there's an issue with the Republicans. That's fascinating.

KAREN FINNEY, CNN POLITICAL COMMENTATOR, FORMER SENIOR ADVISOR TO HILLARY CLINTON: We may disagree how to get there, but we pretty much agree on our values and things like, I don't know, health care. People should have it. Maybe $5,000. I mean, I think we're more likely to see the Epstein files than we are to get that $5,000 because, remember, we were supposed to get those dividend checks from the tariffs. I'm still waiting.

COATES: DOGE as well.

FINNEY: Yes. I've been checking every day, but I don't see it. Look, I think part of the what all of these, I mean, karma is a you-know- what. I think Republicans are learning that. I mean, they could have been rid of Donald Trump after January 6th. So, they -- this is the bed they made, and they are laying in it.

And what's interesting is you're hearing voters. Part of what they're angry about is that they're not holding Trump accountable for this madness because they're realizing in their own lives. We saw in "The New York Times" poll, some of the quotes, things people said was, I feel like he is gaslighting us. This was a Trump voter. Another one said, you know, I feel poor in America. This is a Trump voter.

So, this isn't just liberal Democrats. People are really saying, wait a second, this guy is not looking out for me, everything is about him, he's more interested in getting his name on the Kennedy Center or, you know, and why is this kid having his wedding paid for by a Russian oligarch?

I mean, I think you got it. We have to view it all as a, you know, in the way that people are looking at it at home. It's, like, what are these people doing? Why are they not taking care of me?

COATES: And I want to broaden that last point you made especially because those people, they're often talking about incumbents. They're talking about Congress, talking about Democrats and Republicans. They're not happy about, even they remember, inflation when Democrats were in power, and that wasn't that long ago. So, when you look at this, how do Americans trust that Democrats, if they do reclaim the majority, that they're going to do better?

DAVID HOGG, CO-FOUNDER OF LEADERS WE DESERVE, FORMER VICE CHAIRMAN OF DNC: Well, I think the bottom line is here: When there was inflation that happened in 2020, it was in response to a global pandemic that would have driven us into basically the second Great Depression, potentially, if we had not had that stimulus. Then we also had the invasion of Ukraine and the supply shocks that came with that.

Whereas voters here saw a president that campaigned on the idea that he was going to end foreign wars. What did he do in less than two years after he was elected? He started a new one that has cost $83 billion and has caused gas prices to directly skyrocket.

The reason why inflation is picking up and they're having to raise interest rates now in response to that is because of the decision of one man to go to war with Iran that was not authorized by Congress and continue to do that. That is now causing energy prices to skyrocket across the board.

And what voters do know right now is that they voted for a guy who, while they may not have liked everything that he was saying or the things that he was tweeting, at least they thought that prices were going to get better. It's pretty obvious now that has not been the case.

And what voters are going to be thinking about as they're going through a lot of pain, paying the price at the pump right now? They're going to put Republicans through even more pain this November at the ballot box.

COATES: Maybe that's why Vice President J.D. Vance is making this plea. Listen.

(BEGIN VIDEO CLIP)

J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES OF AMERICA: There's a lot of good that has been done, but there's a lot of work left to do. Don't give power to the people who cause the problems that we're fixing. Give us another chance or give us another couple of years to continue to work on the amazing things that we've been doing for the past two years.

(END VIDEO CLIP)

COATES: First of all, the idea -- respond, please, because, one, asking for a second chance implies that I screw up the first one.

FINNEY: Please, baby.

COATES: And the second one, it's like --

FINNEY: Please, baby.

COATES: Tell me.

FINNEY: You know, it's like, come on now. We've all been in those relationships where you're, like, you were right to break up the first time.

(LAUGHTER)

Girl, don't do it again.

COATES: But you know what? He is saying they need a couple more years.

FINNEY: Right.

COATES: That, I think, is going to not sit well with voters because, look, we are not only an instant gratification human race nowadays, but when it comes to the problems and the priorities people have, asking for a few more years of my pain isn't going to fly.

CUSACK: No. And, honestly, in 2025, you can look back at the headlines, the Trump administration said, wait until 2026, wait until the big, beautiful bill kicks in, OK?

[23:15:05]

But those -- any economic benefits from that have been totally degraded by the Iran war that was supposed to last six weeks. I think Republicans would be in the game, at least, to hold the House. I think the House is basically gone now. This is all about the Senate. It's because of the Iran war. It's very unpopular. Everyone thought, well, Republicans said, well, maybe by July 4th, it will be over. Maybe by Labor Day, it will be over. We're going to be voting and it's still going to be going on.

COATES: I mean, let's talk about the Senate because it's important. And it was just a short time ago that Abdul El-Sayed was the Democratic candidate that the establishment was not going to rally behind. And now, you've got senators rallying behind him. Listen.

(BEGIN VIDEO CLIP)

SEN. DICK DURBIN (D), ILLINOIS: There was a time when the Republicans tried to tie Democrats to a man whose name was Barack Hussein Obama. It didn't work.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SEN. MARTIN HEINRICH (D), NEW MEXICO: He comes across so accessible to a lot of voters, and we're starting to see that in the data.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SEN. GARY PETERS (D), MICHIGAN: It's clear that Abdul has wind in his sails right now.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SEN. ANDY KIM (D-NJ): Look, I'll be honest. Like, you know, I think it's exciting to have younger candidates.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP) SEN. CHRIS MURPHY (D), CONNECTICUT: I think Abdul is going to be able to cross over and get conservative, traditionally Republican support in Michigan. I think he'll be more of a bridge builder here than folks think he will be.

(END VIDEO CLIP)

COATES: David, where do you come down in his candidacy? And why do you think they're just coming around to him now?

HOGG: Well, it's in part because they know that, you know, obviously, the party is consolidating. You know, for all the talk about a democratic civil war and how the party is never going to be able to unite, like Haley Stevens immediately endorsed Abdul and supported him, and everybody has consolidated behind him and fallen in line.

The other thing is, you know, today, I'm proud to be announcing that my organization, Leaders We Deserve, that we're endorsing Abdul for his Senate run. I was just meeting with him earlier today because he's visiting D.C. right now.

And what I'm really excited about in this race that's not being talked a lot about are young voters in Michigan, actually. This is a state that young voters can have a huge impact on. And people always talk about, you know, the five percent of voters that maybe vote Democrat sometimes and Republican other times. What they're not talking about is one of the largest groups of swing voters in the country, which are the young voters who swing from just not voting to voting on the rare occasion.

When Democrats actually give them somebody, they're excited to go out and vote for it. That's part of why Abdul was able to win his primary and it is part of why I think he's going to be able to win in November, because we're giving, as a party, young people, in a time of enormous crisis, somebody who is not controlled by the same corporations that we feel like we've been sold out by as a generation.

It's part of the reason why incumbents are losing across the board this cycle in their primaries, because young people are fed up. They want a better Democratic Party that actually properly represents them. They are generation of people who, for example, as radical as this might be to say in D.C., that have more people in power, who paid rent in the 21st century, who have people in power who understand that TikTok connects to the internet when we're worried about A.I. destroying the world, right?

We have the opportunity to show young people after we lost them last election cycle that Democrats aren't just offering a new message, they're offering new messengers that are ready to meet them where they're at instead of just saying vote for us because we're not Republicans.

COATES: Well, an old messenger, and I mean only old in terms of having served before, I'm talking about the vice president, let me be very clear.

FINNEY: I was going to say --

COATES: I am not. I'm not going to anybody old.

(LAUGHTER)

The former vice president, Kamala Harris, is set to hit the campaign trail next week with El-Sayed for an event that is focused on Black maternal health.

FINNEY: Yes.

COATES: We haven't seen a lot of her in terms of the campaign trail among a number of candidates. Will this show of force in some ways unify the campaign or those who are thinking, is there some disjointedness? And is she the right messenger in this time for that candidate?

FINNEY: Absolutely. So, I run a voter registration nonprofit for Black voters, and we had her on a call Monday night. Over 6,000 people joined, and they were so -- I mean, the chat was going crazy. People love her. She is very beloved. Obviously, in the Black community, a lot of love and support for her. And so, I think she is absolutely the right person to go to Michigan and campaign and talk about an issue that is -- I mean, that is a health care issue.

One of the things we are not talking about is, by the way, the big, ugly bill. A lot of costs were pushed off until 2027. There is a lot of pain that is about to hit a lot of folks.

So, to have someone like her go and talk about that and to help bring in some of the, you know, parts of the party that maybe haven't been open to Abdul because here is the thing: It was such a racist caricature that was made of him. And having sat with him here on these sets at CNN and talking, he is a very smart man. He has a very good record. He actually did some things that mattered like doing away with medical debt for people, like making the V.A. work a little better for people when he was working in public service.

So, I think the more people get to know him and his ideas, that is part of why they are excited. Kamala is definitely a huge draw in a lot of places in the country.

[23:20:01]

People are wanting her to come and campaign for them.

COATES: But Bob, they still want Dr. Abdul El-Sayed to be the boogeyman in the Republicans.

CUSACK: He is definitely the boogeyman for Republicans without a doubt. I do think it would be smart for him to distance himself more from Hasan Piker. I think that would be a big thing. His weakness is African-American voters. So, this is a smart move. I think it is also smart for Harris to get involved. I also think it would be smart for Harris not to run for president and just be --

COATES: You've got to throw that in.

CUSACK: I'm going to throw that in. I don't think --

COATES: I've got commercials to get to.

(LAUGHTER)

CUSACK: I know. But I think it should be wise to help Democratic candidates not run.

HOGG: Bui I also got say, though, on the Hasan Piker side of things, you know, people in rooms like this talk so much about his association with Hasan Piker. I got to tell you, when people are going into the ballot box this November, I think what they're going to be thinking about is the fact that they cannot afford their insulin versus their rent, they cannot afford the gas that they're paying for much more than they're going to be thinking about what was this guy on some person's stream.

COATES: Well, let me -- I don't want to take you off, but I want -- I have El-Sayed say what he said in response to whether Hasan Piker would actually be a part of his campaign. Listen to this.

(BEGIN VIDEO CLIP)

UNKNOWN: Are you going to do another campus tour with Hasan Piker?

UNKNOWN: Yeah, I think that's it.

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: No, he's not going to be part of the general. No.

(END VIDEO CLIP) COATES: I think I heard no. Well, we'll see what goes on next.

FINNEY: Yes.

COATES: Thank you, everyone, so much. And still ahead, Speaker Mike Johnson suddenly sending the House home early. Was it to avoid a vote to impeach Secretary Pete Hegseth? Congressman Seth Moulton with me on set to talk about it, next.

(COMMERCIAL BREAK)

[23:25:00]

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNKNOWN: Speaker Johnson, is this an effort to avoid the Hegseth impeachment vote?

MIKE JOHNSON, SPEAKER OF THE UNITED STATES HOUSE OF REPRESENTATIVES: Oh, let me talk about the impeachment vote. That's ridiculous. It's a publicity stunt by someone who wants attention. It will immediately be tabled, of course.

(END VIDEO CLIP)

COATES: Speaker Johnson is taking a lot of heat tonight for sending Congress home early for a seven-week recess. He denies it has anything to do with stalling on a vote to impeach Pete Hegseth. But the congressman who introduced those articles of impeachment, well, he isn't buying it.

(BEGIN VIDEO CLIP)

REP. THOMAS MASSIE (R), KENTUCKY: We may only be the majority for six more weeks. Why would we be canceling days when the country is burning, the inflation is rampant? There are things we could do here. Why would we cancel our own majority? I can't figure that out. But I did figure out why we canceled tomorrow. Tomorrow would be the vote on impeaching Secretary of Defense Peter Brian Hegseth.

(END VIDEO CLIP)

COATES: Joining me now, Democratic congressman from Massachusetts, Seth Moulton. He also serves on the House Armed Services Committee. Congressman, many people are wondering the same thing about this coincidence of a seven-week recess and this on the table. Do you think the motion to push to impeach him is going to lose steam once you guys return?

REP. SETH MOULTON (D), MASSACHUSETTS: No, I don't think so. I mean, the reality is that Republicans privately hate Ranger Pete Hegseth. They don't like him.

COATES: You've heard this? MOULTON: Oh, all the time. I mean, they come up to me. I'm on the Armed Services Committee. Of course, he testifies before our committee. And they can't stand the guy. He's selfish, he's insecure, he's a terrible role model for the troops.

I mean, remember, this is the guy who weeks into his term, the most narrowly elected secretary of defense in history, discloses classified information, something that would get a private in the military immediately fired, possibly thrown in the brig, in prison. And the secretary just gets away with it.

So, people cannot stand him. The troops make fun of him. A lot of us would love to see him go. And that's why it was so powerful that a Republican brought motion -- you know, a motion to impeach. It's very thoughtful. It's very well written, very well argued.

COATES: But it had to be secretive until the very last moment because he knew that it would likely be tabled. So, that --

MOULTON: That's right.

COATES: Does that factor into how somebody privately may be disparaging Hegseth and then publicly is saying, hmm, not my name on it?

MOULTON: It's a total lack of courage among Republicans to just vote their conscience. I mean, you look at Republican polling on the war, for example, and the vast majority of Republicans, nonetheless, vote to continue the war. You know, my War Powers Resolution, that passed with the largest margin of any of the five War Powers Resolutions to date to stop the war with several Republicans, seven Republicans.

By the way, half the Republicans, more than half, are fellow veterans. Veterans understand that this war is really dumb. And so, they joined with 13 Democratic veterans and the rest of the Democratic caucus to stop the war. But 97 percent of the Republicans in the House voted to continue it. Now, that's not because they actually believe in it, it's because they don't have the courage to stand up to the president.

COATES: Do you think that the impeachment, when it comes to Hegseth in particular, is something that is more about Trump's decision? Obviously, he's the commander-in-chief, and they would feel that Hegseth is either being -- I'm using the word "scapegoating" lightly here, at least, because of his role in office, obviously. But what is the reason that there is such a disconnect between what they're saying publicly and privately when he is the secretary of defense and there is an active war?

MOULTON: I mean, the reality is that this war is a disaster. It has not only failed, it has backfired. It has actually empowered Iran more. Iran has never projected so much power that they can close the Strait of Hormuz and bring the world economy to its knees. I mean, this is extraordinary. I mean, someday, they're going to be venerating Donald Trump in downtown Tehran because he has actually done a great favor to Iran on so many different measures. And Pete Hegseth is the architect of this war along with Donald Trump. So, you know, there's a "Hunger Games" for who is the most hated Trump cabinet official, but I think Pete Hegseth is winning the race even among Republicans.

[23:30:01]

And so, a lot of people really privately want to see him gone, and that's why this has currency. And what matters is not the fact that, you know, in this case, Johnson canceled an additional two weeks of votes in late September so we have this ridiculous seven-week recess, but the fact that he sent us home 24 hours early today --

COATES: Right.

MOULTON: -- just to avoid the vote tomorrow.

COATES: Well, fast forward to November. Say Democrats are able to reclaim the House and have the majority in Congress. Do you think that the support for Iran war that it's stopping will increase the closer you get to that period of time?

MOULTON: Yes, because the war keeps getting worse every single day. We get more in a hole. The administration has no idea how to get out of this war, a war that they obviously had no clear plan getting into.

COATES: But why just three more Republicans joining in at this point? I mean, why aren't there more people who are signing on just for the plain and simple fact, congressman, that he went around you all?

MOULTON: Yes.

COATES: He didn't look to you at all. I mean -- and people look at Congress as having ceded some authority by not pushing back stronger that there is an active war and President Trump is saying, and?

MOULTON: It's very simple. They're scared. They're just scared of the president. You know, they scared -- COATES: But not of the voters.

MOULTON: Well, they might wake up in November. But right now, they're scared of the president. They're scared of a president who is more focused on graffitiing his name on the side of a building in Washington, D.C. than stopping a war that's an utter disaster for the American public and for our troops.

COATES: Congressman, there's a moment -- there was an email, I think it was, that was dated Tuesday and sent to the army commanders. And the Pentagon is looking for service members who fit certain physical standards to attend an event. And they're talking about a waist-to- height ratio. They're having impeccable grooming and uniform standards. There's a fixation, clearly, from this particular secretary on the optics of our military. You've served. Is this where the focus ought to be --

MOULTON: No, of course not. COATES: -- as opposed to the actual substantive support for our troops?

MOULTON: There's a war going on.

COATES: Right.

MOULTON: There are Americans dying overseas. Gas prices are skyrocketing because of this ridiculous, dumb war.

And Hegseth is focused on what the troops look like. Remember, Hegseth works for Donald Trump, the draft dodger who allowed someone else to go in his place to his generation's war in Vietnam, who refuses to appear next to wounded troops, will not have troops' missing limbs appear in his parades or public events. So, that's the level of respect that Donald Trump has for those who truly sacrifice for our country. And Hegseth, of course, is afraid of Trump, too, so he just reflects that.

COATES: I'm not aware of that failed photo op you're talking about. That's fascinating. Congressman, thank you so much for talking to us today.

MOULTON: Good to see you.

COATES: Up next, 48 days to go until November, and Democrats have the wind at their back with a new forecast that says they have eight more House races in their favor. So, is a blue wave forming against Trump or do Republicans have a way to ride it out? Larry Sabato looks into his crystal ball for us, next.

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[23:35:00]

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(BEGIN VIDEO CLIP)

TRUMP: You have to get out and vote. And that's why I say you got to pretend I'm on the ballot. Some of you like me better than you like the party. The party is good. They've got great people in the party.

(END VIDEO CLIP)

COATES: Tonight, President Trump tacitly acknowledged the uphill battle Republicans face in the midterms. He's still popular among the faithful. But the party faces an enthusiasm gap compared to Democrats. And tonight, one new analysis suggests eight more House races could be tilting toward the Democrats. That's from the political pontificator Larry Sabato and his crystal ball at the Center for Politics at the University of Virginia.

Larry Sabato joins me now. Larry, thank you for being here. I want to talk about that crystal ball. And tell me, what is driving this shift? Is it reaction to what the parties are doing or reflection of the midterm environment overall?

LARRY SABATO, DIRECTOR OF CENTER FOR POLITICS AT UNIVERSITY OF VIRGINIA, AUTHOR: Oh, it's the environment and it's the fact that now, amazingly, there's a near consensus of quarrelsome forecasters and prognosticators that the Democrats will indeed take over the House. There's more disagreement about the Senate, of course. But it's significant that hardly anybody is dissenting from this. Maybe that's a warning sign that everybody agrees. But I think it's accurate.

And it reminds me what's happening. So many different factors coming into play here. It reminds me of 1994 when the Republicans swept Congress or 2006 when the Democrats took over both houses of Congress at the sixth year of George W. Bush's administration, and 2010 when Obama was temporarily repudiated because of the reaction to Obamacare.

I don't know how much it's going to be like 2018, which was the first midterm for Donald Trump, and he was shellacked in that particular midterm. But things don't look good for him and the Republicans. And you really can't construct a scenario whereby all of these factors will disappear or will be minimized and, suddenly, the Republicans will keep the House and the Senate.

[23:40:05]

I just don't see how it's possible.

COATES: Let's talk about those margins because there was that new poll that suggests that Democrats actually have an eight-point advantage over the GOP in the midterms. I mean, I hate to use the phrase blue wave. I know people oftentimes believe it's overused. But is a blue wave all but certain at this point or do Republicans have enough time and money to avoid it?

SABATO: Well, they certainly have the money. But we've learned over the years from many elections that while money is important, it's always better to have more of it than less of it. It is not the number one determinant of most elections. The conditions are how people feel about their lives, how much they hold the incumbent president and Congress responsible for the condition of their lives.

So, I agree with you about the wave, but I always tell people, well, the wave can be a nice one, a big one that strikes and gathers everyone's attention or it can be a particularly substantial wave that causes real damage on the shore or it can be a tsunami. And with luck, we'll still have film of it because, usually, people are overwhelmed.

Personally, I would pick the middle course because that's a safe one, 48 days in advance or now 47 days in advance of the election. But, remember, people are voting every single day. We're in the voting period.

COATES: Right.

SABATO: So, it's not as though Trump could decide to pull a Nixon. Nixon got reelected. Nobody remembers this. He was on the edge of losing in 1971 to a series of Democrats because of bad inflation and a bad economy. What changed things? Nixon decided to do something that he knew was not going to work out in the long run or even the median term. He enacted or rather declared through executive order partly the wage and price controls. Now, it solved the problem of inflation for the moment. It caused severe economic problems for the rest of the 1970s. But that wasn't Nixon's problem. He got reelected in 149 states.

Maybe I shouldn't have mentioned this in case somebody may pass it along to President Trump. It was a disaster, and in the long run, it doesn't pay to do it.

COATES: Something tells me that Trump, when you said the word Nixon, shut off his ears because he doesn't like the comparisons for other reasons. But, you know, he did campaign tonight in North Carolina for Senate nominee Michael Whatley, and he repeated his "pretend I'm on the ballot" message. Have you seen evidence, Larry, that suggests that that strategy may actually work to help Republicans?

SABATO: It really does work in deeply red states and districts. In purple competitive districts and states, much less blue ones, it's a disaster. But Donald Trump will never acknowledge the real fact and truth of this midterm election. He is the cause of Republican problems. Of course, they've all participated in it. They refuse to stand up to him. They continue to genuflect. But it's his policies and his outrageous behavior that has put the Republicans in the position to lose certainly one, I think, and maybe both houses of Congress.

COATES: I do wonder if voters think it's a fox on both houses. Larry Sabato, thank you so much.

SABATO: Thank you very much, Laura.

COATES: Still ahead, a silver lining emerging from the controversy over Macklemore's exit from Ed Sheeran's tour. What Sheeran has been doing behind the scenes. Plus, the question tonight: Can he overcome the intense backlash that he's facing?

(BEGIN VIDEO CLIP)

UNKNOWN: Hey, if Ed Sheeran comes on the radio while you're driving along, are you changing the channels?

REP. ALEXANDRIA OCASIO-CORTEZ (D), NEW YORK: I am.

(END VIDEO CLIP)

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[23:45:00]

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COATES: While the Macklemore-Ed Sheeran controversy is showing no signs of calming down tonight, Macklemore put out a brand-new statement this evening saying he's donating the million dollars he made from the tour to support the Palestinian people. He called on NFL owner Robert Kraft to do the same. Kraft's response? Quote -- "Before Macklemore challenged me to match his donation, Ed called me and asked me to commit $2 million to match his donation to aid in the region. Ed now plans to reach out to other venue owners and our goal is to continue to work together to build bridges."

Sheeran has now lost all of his opening acts on his tour after they dropped out to protest Macklemore's removal. And the statement he put out yesterday does not appear to have stopped the backlash. He blamed the tour promoters for the decision, adding -- quote -- "I am not complicit.

I have my personal views on this devastating conflict. Just because I choose not to speak publicly, it doesn't mean I don't have them, and it doesn't mean I don't care."

Joining me now, op-ed columnist for the L.A. Times and host of the "LZ Granderson Show," LZ Granderson, along with visiting researcher at Harvard Law School and columnist for the Forward, Rabbi Jay Michaelson. Glad to have both of you with me this evening.

I'll begin with you, LZ, because Sheeran, he's trying to have some good come from this ordeal by raising money for Gaza. But do you think he'll be able to get past the backlash or will he be told and expected to say a lot more?

LZ GRANDERSON, OP-ED COLUMNIST FOR LOS ANGELES TIMES, PODCAST HOST, VISITING SCHOLAR AT WESTERN MICHIGAN UNIVERSITY: I think it's just going to forever hang over him as a cloud. I don't know if there's anything he can say at this point, Laura, that's going to change anything, you know, because it's not a statement that people are upset about, it's about the actions, and he can't reverse the actions in terms of what happened to Macklemore.

So, whether or not his career returns back to the heights it had before, I doubt it because this is a very, very serious topic, and he disappointed a lot of people.

[23:50:03]

COATES: You know, Jay, you write in your latest piece -- quote -- "just because words can make us feel scared, angry, attacked, or unsafe does not mean that they constitute hate speech. This is what Kraft and others like him seem unwilling to see: that we can feel attacked without actually being attacked. That words can be painful but not hateful." Why do you believe Macklemore's words weren't enough to justify the response that he got from Kraft?

JAY MICHAELSON, COLUMNIST FOR THE FORWARD, VISITING RESEARCHER AT HARVARD LAW SCHOOL: Well, I think, you know, Macklemore's statement and also his song, which is getting less attention but in many ways is more strident, is almost like a Rorschach test. People look at the same images, they hear the same words, and they see completely different things.

So, among my progressive friends and colleagues, the phrase "free Palestine" is a noble one, right? It's a statement of idealism. And yet, I have many Jewish friends in my own community who even see that phrase as calling for the elimination of Israel, or the use of the word "genocide," which is common, I would say, certainly among progressives. There are many in the Jewish community who see that as libelous. I'm not one of them.

But I want to take seriously the sense that many in the Jewish community have of being attacked without validating the facts underneath that. That is to say, I don't think that Robert Kraft's move was just a calculated effort to squelch political speech. I think it comes from actual pain and actual fear. And that, again, doesn't mean that he's correct or that this was a justified action. In my column, I strongly oppose it. But I also don't think that it was just a cynical maneuver to squelch political speech.

COATES: And yet, the consequence is quite clearly that, in many ways, LZ. I mean, Colin Kaepernick, who is no stranger to facing backlash for being outspoken on politics, he had this to say when he was asked about it. Listen.

(BEGIN VIDEO CLIP)

COLIN KAEPERNICK, FORMER NFL PLAYER: The part that I hope people appreciate and take away in this moment is what Robert Kraft and what they're saying by denying Macklemore the opportunity to go out and perform with Ed Sheeran is they are willing to collude. They are openly colluding. They want to protect their interests. They want to protect their power. They want to protect their money. And they also want people to know that if you take an action that they don't agree with, they will come for you.

(END VIDEO CLIP)

COATES: Congresswoman AOC also called it an abuse of power. LZ, do they have a point?

GRANDERSON: They do to a certain degree. This isn't a case of the government, you know, punishing a citizen and violating First Amendment. This is a private citizen saying I don't want this performer to perform. It's up to us as private citizens to decide whether or not we want to continue to support the New England Patriots and other things that Robert Kraft is involved with, whether or not we will continue to listen to Ed Sheeran's music or buy any of his merch.

The personal responsibility now falls back on us as consumers of the product. I say consumers of the product because I'm so disappointed in Ed Sheeran. I can't help but think of him as a commodity now. An artist, you know, in the words of a great Nina Simone, speaks of the times. What he did was as a business decision. And I'm not hating on it, but he's a talented artist who decided to be a commodity in that moment.

COATES: Well, this reminds you who really has the power that might actually surprise people to whom each person is ultimately beholden. LZ, Jay, thank you both so much.

MICHAELSON: Thank you. COATES: Still ahead, do you love food? Do you love road trips? How about a little adventure? Well, then, I've got just the thing for you, next.

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[23:55:00]

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COATES: Before we go tonight, a quick preview of a brand-new CNN Original Series. It's called "The Detour with David Chang," and it follows the acclaimed chef as he finds some of the best culinary gems all across the country. Here's a sneak peek.

(BEGIN VIDEO CLIP)

DAVID CHANG, CHEF: Let's define a road trip. How long does it have to? I'm going to suggest the road trip has to be longer than a really long movie. It got to be longer than "The Godfather 2."

UNKNOWN: I agree with that.

CHANG: Anything less is a day excursion.

UNKNOWN: Yes. How much caffeine this is having versus a Red Bull?

CHANG: Don't worry about it. Let your heart guide you.

(LAUGHTER)

Get (INAUDIBLE). Trust your surroundings.

UNKNOWN: Incredible.

CHANG: I'm just taking whatever is given to me. I think added to road trip rules is like saying yes. Just trying new things. Like just going down unexplored paths, following some poor advice from some stranger that you meet. And the reason I go to Las Vegas, it just is a whole different world that follows its own rules. And there's a little-known fact. They're handing out free money there.

UNKNOWN: You just got to be willing. You got to be brave enough to take it.

CHANG: Exactly. Sometimes, that free money only happens when you lose some money.

(LAUGHTER)

(END VIDEO CLIP)

COATES: It premieres September 20th on CNN at 9 p.m. Eastern and Pacific, and it streams next day with a CNN All Access subscription.

Hey, thank you all for watching. "The Story Is with Elex Michaelson" is next.

ELEX MICHAELSON, CNN ANCHOR AND CORRESPONDENT: I'm Elex Michaelson live in Los Angeles. Coming up, the story is hostile act. President Trump issues a warning to the European Union about their potential new partnership with Canada.

[00:00:01]

Mark Carney's former chief of staff is with me live. The story is affordability. The Fed raises interest rates.