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They think the economy is so good. The same Jerome Powell that President Trump reportedly wanted to fire or was considering firing or asking if he could fire but recently realized that he does not think that he can. The trouble on wall street could mean another casualty in the cabinet. A source telling cnn that Steve Mnuchin could be in serious jeopardy with trump after mnuchin tried and failed to calm wall street with his call and the bizarre statement that he put out afterwards. Alison kosik has the latest at the new york stock exchange. Im seeing red arrows. The rally that the dow had quickly fizzling out. It is interesting to see the downward momentum creep back in as we see the dow and the s p get close to bear market territory, a drop of 20 from the highs. There is a lot of pessimism in the market, Political Risk is now added on to the list of worries for wall street and for the worries about the fed pfs rate hiking path and Global Economic growth slowing down and Earnings Growth that is expected to slow down next year and worries about how the u. S. And china trade situation will be worked out. You pile that on and then add the Political Risk. Usually in the past Political Risk meaning tweets from President Trump or crazy comments about fed chair would be ignored by the market, now is becoming part of the trading action. That is really becoming an unpredictable part of the trade. There is one thing that the market hates and that is uncertainty. Each time you see the president go on this tirade against powell or there are rumors about possibly treasury secretary Steve Mnuchin. That sort of seeps into the Market Sentiment and causes the negativity. On board for another wild ride today. Thank you so much. Joining me to discuss this is cnn Global Economic analyst and associate editor at the New York Times and senior economic analyst and adviser to the Trump Campaign steven moore. We talked about this just before the markets were closing. This month is now on track to be the worst december since the great depression. It was the worst Christmas Eve day on wall street ever. Yeah. How bad is it right now . It was up this morning. It is down again. There are a few things going on. There are three baskets of things that are wrong in the markets. Some of them we knew werent going to happen. Recovery cycles tend to last about ten years. A lot of economists were predicting a slow down a year ago at about this time. Its not really a surprise. There are a couple of things that have happened. The president has come and really rattled the market with tariffs and trade war against china. We had attacks planned. We had attacks that allow them to bolster share prices. All of that is coming home to roost. We have record amounts of corporate debt which is a reason the fed wants to raise rates now. Markets are out of sync with the economy. You need to not have such a big divergence between wall street and main street. How do you see it right now . Well, this was a horrible december, no question about it. I agree with a lot of what was said. I think one of the biggest factors of all other than the fed, i think that the trade situation with china is really the biggest factor of all because this is a high stakes show down between beijing and washington. This is going to get resolved one way or the other probably in the next 60 days or say. Remember that trump gave the chinese 90 days to come up with some kind of concessions on trade. If that happens, i will be optimistic today. If they get some kind of trade deal that works for the United States, i think you will see a big reversal of the stock market slide and it will be jubilation in the stock market. So that is the upside potential. Now, on the fed, this was what happened last week was what we in sports call an unforced error. On whose part . It was a decision by the fed. Everyone agrees it was a catastrophic mistake. The fed should meet tomorrow and reverse that decision. I mean, there is no basis for the fed rate increase at a time when we have deflation in the economy. It makes no sense. Investors, we are talking about trillions of dollars of losses because of a bone headed play by the fed that is easily reversible. I think if the fed met and reversed the decision i think that would be a terrible thing for the markets because it would be viewed as political. It is important that the fed is viewed as a stabilizing force in the markets. That is what the fed has been for the last ten years. The president had no right to traik credit for the economy. The president lives by the markets and dies by the markets. It was a mistake to take credit for what happens in the stock market. You have seen it to see donald trump would have cause to fire powell. Do you think that would help things right now. I think this was such an inexplicable move. Trillions of dollars were somehow because they thought this would establish their independence. Trump was right. They were looking at data. You just said a few minutes ago that the purpose in the fed is to stabilize the economy. You think they are stabilizing the economy . You know what they are doing . They are cleaning up the mess of record corporate debt. You pour kerosene on that with Corporate Tax cut. Corporations brought back not nearly as much money. Almost none of it went to main street. Now companies are doing great but real americans havent felt it. We have a bubble in the market. When Companies Buy back shares they reduce the debt. Youre confusing things. You do think i dont think anybody thinks the Corporate Tax cuts hurt it economy. Lets not forget the 2018 we have one more week in 2018. This has been the strongest year for the real economy in terms of jobs, in terms of gdp growth and the lowest Unemployment Rate and manufacturing. This has been a great year for the economy and that was triggered in no small part because of the tax cut we passed exactly a year ago. Looking forward, the real risk looking forward is not the insurmountable challenges. It is that poor leadership converts moderate economic shocks into a crisis. I do wonder if firing j. Powell would be one of those things. Look, i think powell has been incompetent so far. I think every move he has made has caused a massive slump. We have a booming economy. There is a demand for dollars around the world. You have to be putting dollars into the economy and not taking it out. Look what happened to the oil price. Look what is happening to the prices of commodities whether it is soybeans or wheat or cotton or Minerals Like copper, these are falling. That is a sign that we have deflation. It makes no sense in any kind of economic theory to say you raise Interest Rates when your deflation this is what there is a real debate. This predates donald trump as to whether or not there is deflation in the economy. That is a debate that the fed should have and is having. That is a debate that should be had in an apolitical way. If you talk about firing you automatically make the entire thing political. Its the most ridiculous thing i have heard. How do you explain this year that we have a 12 decline in Commodity Prices and say that is not deflation . China is slowing and the Global Economy is slowing. That could have some effect. We have a bubble in the asset market that has been brewing for a number of years and was not helped by the president s tax cuts which benefitted corporations. I will say this as we bring 2018 to a close the way the stock market was looking, we are not pointing for a happy beginning of 2019. Well discuss that in many days to come. Hold on to your stocks. I dont think i have heard you once tell me to sell my stocks. You have a bit of a thing going. Great to see you guys. I really appreciate it. Im bullish on getting you guys off my show. We have new details, breaking news about the death of an 8yearold boy who was in Border Patrol custody and what big changes the agency is making in the aftermath of the tragic news in how it handles children in its care. We will bring that to you. President trump vows the shutdown will last until he gets full funding for his border wall or fence. That is how he put it the other day. Democrats holding firm that that is not going to happen. Who is going to blink first when they get back to work tomorrow . Look, if youre not the lead dog, the scenery never changes. Thats why this is the view for every other fullsize pickup. And this year, its deja vu all over again cuz only the ford f150 gives you bestinclass torque, bestinclass payload and you got it, baby. Bestinclass towing. This is the big dog this is the ford f150. It doesnt just raise the bar, pal. It is the bar. Hurry 0 financing for 72 months on ford f150 ends january 2nd. See your ford dealer today. So we improved everything. We used 50 fewer ingredients added one handed pumps and beat the top Safety Standards the new johnsons® choose gentle about medicare and 65, ysupplemental insurance. Medicare is great, but it doesnt cover everything only about 80 of your part b medicare costs, which means you may have to pay for the rest. Thats where Medicare Supplement insurance comes in to help pay for some of what medicare doesnt. Learn how an aarp Medicare Supplement insurance plan, insured by United Healthcare Insurance Company might be the right choice for you. A free decision guide is a great place to start. Call today to request yours. So what makes an aarp Medicare Supplement plan unique . 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Two this type of plan allows you to keep your doctor as long as he or she accepts medicare patients. And three these are the only Medicare Supplement plans endorsed by aarp. Learn more about why you should choose an aarp Medicare Supplement plan. Call today for a free guide. An 8yearold boy has died in u. S. Custody. It is the second time this month that a child has died in the hands of Border Control agents. Certainly, there are not more children that have passed away. This is a rare occurrence. It has been more than a decade since we have had a child pass away anywhere in the process. This is just devastating for us. The government says that the boy died on Christmas Eve as he was being transported between a border Processing Center and a nearby hospital. Nick, do they know how this happened to this boy . Reporter officially, there is still no cause of death. All of that is part of the internal investigation which we expect to focus on the kind of medical care that this child got. There is no doubt according to cdp that this 8yearold boy was attended to, but it was the kind of medical care that he got. He was diagnosed with nothing more than a common cold when he was taken into the hospital on monday morning. He was released even though he had 103 degree fever. He was given amoxcillin, which is a generic type of antibiotic. He was prescribed ibuprofren. He died just minutes before midnight on Christmas Eve. A lot of people are wondering how this could have happened again. Here we are less than three weeks since we talked about another victim who died in u. S. Custody. She was just laid to rest in a touching ceremony in her home country. Here we are talking about yet another child. This has shaken the cdp. This is really shaking members of the customs and Border Protection including the commissioner who has implemented secondary medical screening for all children especially those under 10 years old. They are asking for more resources. It was a short time ago that secretary neilsen asked for more resources from the department of defense as well as the coast guard to help with the medical screenings. They are hoping that will keep Something Like this from happening again. You are in el paso, texas where another story is playing out related to this. Hundreds of migrants are being dropped off and left at places like bus stations and restaurants by i. C. E. Officers. What is going on there . They are being dropped off without warning, we understand. Congress woman elect who is about to represent this district saying that 200 migrants were dropped off at this very bus station without warning to local charities. That is not usually how the process works. I. C. E. Released a statement and didnt specifically address what happened here. They blamed congress for releasing so many while local charities and those who support migrants are released because the time table for them to be held by the government has expired. They were caught offguard. There is an expectation that more migrants will be released in the coming days. We are waiting for that to happen. Joining me now to discuss this the former acting director of immigration. The head of customs and Border Protection said it was devastating in speaking out this morning about the tragedy of the 8 year old and 7 year old. They said their facilities arent equipped to handle families and young children. He blames congress for that. Is that what you saw . Is he right . He is definitely right about the facilities themselves. These are short term lockup facilities designed to house adults for a few hours. They were built with the initial what we were dealing with at the border which was people from mexico crossing into the United States who could be deported quickly. They are not designed to hold 7yearold children or children for days. So this was inevitable. You take vulnerable populations who are under incredible duress and put them in facilities that werent built to house them. No matter how much attention they pay, Something Like this is just going to happen. After the 7yearold girl died earlier this month, i remember you saying that if not for the detention coming from federal authorities then that little girl would probably be alive. What then is the answer to when families cross the border illegally if the facilities arent up to it and detention you say isnt helping them, what is the solution . We can be tough at the border and ensure that everyone of the people are placed in deportation proceedings and returned to their country quickly and still release them. We take 7yearold children and put them in dangerous situations. The cpb positions themselves to get blamed. It is possible the child was so ill that there was nothing they could do. You hold and are responsible for the child. Why would we take a 7yearold child and place them in detention when we can put them in deportation proceedings and expedite the hearings. It makes very little sense to me why we are doing this. To your point, i want to play for you what another former director of i. C. E. , what he said this morning about people i dont know if they are quick to blame Border Patrol agents for what has happened here. Listen to this. Lets not vilify them. These people are coming from third world countries. Many times their first pediatrician is one the government gives to them. I cant tell you how many people maybe go to a medical trauma center. These people are in bad shape. Is tom right . Toms right. I have worked with Border Patrol agents along the border quite a bit. They care. They will do everything they can. They are put in an impossible situation. They are not medical professionals. You are putting 6 and 7 year olds in facilities that are small and designed to house d adults. No matter how deeply you care and i believe they care and they are doing everything they can to protect the health and welfare of the children, you put them in a much higher risk situation. There are other ways that are just as tough at the border to deal with the problem. I dont understand why our reluctant and why we are fighting the Legal Framework that has worked for decades in order to shift to the approach. Now you have 7 and 8 year olds dying as a result. It is just so horrific that it would have to come to children dying. Yes, even if their parents come here illegally, the reasons they come over are varied. The fact that children are dying because the process is broken and no one they cant get their act together to fix it just compounds the tragedy. I want to get your take on i. C. E. Dropping hundreds of migrants off in parts of texas. Bus stations and restaurants, not even giving heads up to local authorities. I. C. E. Said they had nowhere to hold them. There has to be a better way. Is there . This all should be a much more orderly process. What i point the finger at is the insistence on taking the families. The threat along the border shifted. Historically we are seeing single pmales from mexico who cross the border and try to evade capture. You began to see the uptake in Central American families. I get where there is frustration that they think it is a loop hole. We have never adequately resourced the Immigration Enforcement system to handle large numbers of families. Instead of addressing this problem i get what you are saying, people are frustrated that people take their children on this difficult version. The practical reality is they are coming and we have to deal with it. Lets deal with it in a way that is efficient and safe. Lets go ahead and resource up the immigration courts so we can have fast asylum hearings. Building this detention facilities and overwhelmed the system. It hinders i. C. E. From deporting serious criminals. Now there is no coordination or insufficient coordination with the aid societies that will help integrate the people back. You have 7 and 8 year olds dying. I think it is time to stop looking at short cuts like regulations or trying to build out camps that can house families. Lets hire the immigration judges. Its a proenforcement approach. It is cheaper for the taxpayer. That would come with a conversation of Congress Working together to have this kind of thing happen. John, thank you for coming on. Unfortunately, ii think we will have to talk more about this coming up. I appreciate your time. Still ahead for us, President Trump vowing to keep the government vowing the government will continue to be shut down for as long as it takes to get the money for his border wall. Democrats, theyre just as unflinching. Will the two sides be able to reach a deal anytime soon as we are now in day five of the shutdown. Gentle means everything, so we improved everything. We used 50 fewer ingredients added one handed pumps and beat the top Safety Standards the new johnsons® choose gentle but how do i know if im im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Theres no place likargh e im trying. Yippiekiyay. Mom. It is americas longest war. 17 years. Thats how long american men and women serving in afghanistan have been spending the holidays away from their families. That could be about to change. Cnn learned that President Trump wants to see plans to withdraw about half of the nearly 14,000 troops that are serving there. Last week i travelled to afghanistan with republican senator Lindsey Graham. This was before we knew about the president s potential plans. Grahams mission was to convince the president that the fight is still worth fighting 17 years later. I had an exclusive interview while i was there with general scott miller and the u. S. Ambassador to afghanistan, john bass. I talked with the troops, some barely old enough to remember the event that took america there in the first place. We believe that we are here defending the homeland by preventing safe haven for terrorist organizations. The training we get, the mission we are on, i feel like im actually doing something for my country. Reporter two different stories, he joined the military a month before 9 11. I went to iraq in 2006 to 2007 and then haiti in 2010 and three times to afghanistan. He was 3 years old when the 9 11 attacks happened. Now on his first deployment. This is what i signed up for. As long as i have a good head on my shoulders and stay on my task ill be fine. Reporter these soldiers say they know what their mission is. Now 17 years in, what about the Overall Mission . I asked the new Top Commander of u. S. And Coalition Forces in afghanistan. You have been in command for a few months now. You have seen other top military officials offer their assessment that things here are essentially at a steale mate. These are two sides that are fighting against one another. I like how the Security Forces are performing. 17 years on, why is the United States this is ultimately about national interest, not just for the United States about Vital National interests. 9 11 terrorist groups came from here. Today there are other terrorist groups that could effect external to afghanistan. Republican senator Lindsey Graham on a trip there to visit the troops. How do you get there . We have an opportunity today that we didnt have six or 12 months ago to see if it is really possible to achieve that political settlement that general miller indicated is the only way the conflict ends. We dont know if we are going to be successful. I think what we have to see is whether the taliban is interested in responding to the deep desire of the Afghan People for peace. When you look at the over 17 years, over 100,000 down to just over 10,000 now, do you have enough . Can you be successful with the u. S. Mission with even less troops . We have the resources we need. This is an afghan fight. We enable them. Make no mistake, the afghans are in the lead in this fight. You can see that through the casualty figures. You mentioned 9 11. You were one of the first troops into afghanistan after 9 11. Do you want to be the commander who ends u. S. Involvement in the war in afghanistan . I want to leave afghanistan this time and it will be my last time as a soldier. What i would like to leave is a country that is peaceful and unified. Thats a tall order, but thats what would be my hope. Are you confident you can accomplish that . We will keep working at it. We will keep supporting the political process and keep supporting the afghan Security Forces, all designed to support the political process. So i do see some pathways of hope. Until then, its another Holiday Season with u. S. Troops stationed in afghanistan, another holiday 14,000 Service Members are spending away from their families like major isaiah thoms thomson, a father of two with twins on the way. What is it like being away for another holiday . Its tough. With kids, christmas is a lot more important to them so it becomes a lot more important to me. Missing their faces, face time helps a lot. How many christmass have you been away from your family . Probably five. You cant even count them anymore. No. My very best to major thomson and his family and all the troops i met with over the Holiday Season. It is important to remember that my interview was all before the news broke that the military was being asked to draw up plans to cut u. S. Troops in afghanistan by half. It is still a possibility that the president could announce. This is before the announcement that the president is ordering all u. S. Troops out of syria. 17 years later and still no clear answer of what the future holds for afghanistan and u. S. Commitment there. We know it is now in the hands of President Trump and things could be changing. So what could that future look like and what does that mean here at home . That question is more real than ever. Thats coming up after the short break. So we improved everything. We used 50 fewer ingredients added one handed pumps and beat the top Safety Standards the new johnsons® choose gentle i cannot stress that this is yet another christmas that the soldiers are in afghanistan and the reason they are here is so you can enjoy your christmas. They all know what would happen to this place if we left too soon. It would be an absolute disaster and the biggest winners are the people who do not have our best interest at heart. You are going to fight this war whether you want to or not. The question is in whose backyard . I choose the terrorists backyard versus americas backyard. I choose to do it with partners. The afghans have been good partners. If you pull the plug here you will never have a partner anywhere else. That was republican senator Lindsey Graham when i had an opportunity to follow him on a trip last week to afghanistan. Right when we arrived back in the states, cnn learned that President Trump is asking the military to draw up plays to withdraw about half of the troops serving there. Graham believes a draw down too big and too soon could pave the way for another 9 11, his words explicitly. Joining me now is former Army Commander general, Lieutenant General mark hurtling. Thank you for being here. General, you heard it there from Lindsey Graham. He really isnt pulling punches. He is not known to do that anyway. Specifically, when it comes to u. S. Involvement overseas in afghanistan, he is an ally of the president s on many fronts but on this he is clearly sending a warning say figure he were to pull out of afghanistan he believes it would likely lead to another 9 11. What is your view on that . Do you agree with Lindsey Graham or do you think he is exaggerating . I think there is an argument to be made for that. This is a tough call. We have been in this war, as you stated for 17 years. And by the way, thank you very much for bringing this back to the attention of the American People because most americans have forgotten about this war. Its a tuff caough call to dete whether or not we stay or go. War is the continuation of politics by other means. We have been continuing politics by different means for the last 17 years under an everchanging political condition. And its been all about numbers and missions and what the end state is. They have constantly changed over the last 17 years. And the commanders have been trying to execute the mission to the best of their ability. I think most commanders and i know im one of those that fought in the wars, believe we wanted to keep the terrorists away from our shores. Afghanistan was a base. It was very clear why we went in there but things got muddled along the way. Right now, we do have a strategy as we had under president obama. We have one under President Trump. Unfortunately, he is not adhering to his own strategy and what he is trying to attain in afghanistan. You have been involved. You have been in the discussions with the president in terms of the decisions. What is the baus benefit analysis . What needs to be considered that you hope President Trump is doing here even though we have reporting that is contrary . In the first instance you weigh whether the strategy is working. President trump about 16 months ago laid out a new strategy based on conditions for a departure. The president himself said that a hasty withdrawal would have serious consequences for the American People because of the terrorist threats from afghanistan. What is so curious to me about the withdrawal decision is the president s strategy is actually working in certain respects. Our troops on the ground in afghanistan are there as a force multiplier for the Afghan National Defense Forces but are also there to lay the groundwork for a political negotiation with the taliban. The taliban had break through negotiations over the past several months. The president i hope the cost benefit analysis, of course, he is weighing the cost of having troops deployed overseas. They cant be used elsewhere. The benefit, when you look at the benefit of a continued u. S. Troop presence we have obviously securing afghanistan so terrorist threats cant reach the homeland while laying the conditions for environment where the talks can continue with the taliban. You were in iraq during the draw down of u. S. Troops there. I wonder what you heard since you speak military better than i do when you heard general miller and how you heard general miller describe his level of confidence in the afghan Security Forces being able to maintain their own security. Im going to again comment on what sam just said because it is critically important. This was a conditionbased strategy under the mattispompeo approach that they allow the president to buy into. It was condition based. The president has said he wanted to go away from president obama using numbers or time phasing to get rid of troops. And the worst kind of things to do is exactly that is to use numbers or time. It has to be conditionbased. We saw that in iraq. Truthfully, its very challenging if we go from the strategic down to the tactical and the operational just an arbitrary figure of 7,000 soldiers come home, 50 of the troops. For a commander on the ground, you have to figure out i now have a new mission to figure out what troops stay, what troops leave . How do i support the troops who are saying and how do i deliver . And how many helicopters do i need . What is the fighting force . We tall it in the military the truth to task ratio. General miller will have to figure that out. First i have to get a mission if im general miller and then determine what kind of troops . The helicopter pilots, intelligence folks, loagilogist people. Do i have to configure. And by the way, we also have our n. A. T. O. Allies coo consider. About a third of the forces come from Different Countries in n. A. T. O. The germans, the georgians, all of them are stepping up because we have asked them to as our allies. They are seeing us leave afghanistan while the president is slamming our n. A. T. O. Alliances. It just makes it all very, very confusing for people who have fought along side us for the last 17 years. Let us see what decision the president reaches. As you lay out general miller didnt have a difficult task when he took the job in september. His task could become more difficult and more challenging ahead. Lets see. Great to see you. Thank you so much. Still ahead, shut down stalemate. How will it play out when Congress Returns from the holiday break . Well ask for perspective. Well be right back. Day five of a partial government shutdown. That is where we are with Congress Getting just back to business tomorrow. What is going to happen next . Republican congressman mark meadows tells cnn this. Little progress has been made in talks to end the standoff. So now what . Joining me, former republican congressman from pennsylvania. Charlie dent. Now a political commentator. Everyone left town and then holidays, but still in addition to mark meadows saying there was little progress, saying the president is under no illusion the democrats are finding the white house offers and demands for border walls as acceptable. So what then, quite honestly . Well, this shutdown obviously is not going to end this week. I suspect it wont end until after theres a new Congress Sworn in on january 3rd. What then, i think, will simply be this. Nancy pelosi, one of her acts to be a funding bill. The very bill the Senate Passed last week. Send it back to the senate. Thats likely what will happen and then it will be up to the senate to determine whether or not theyll pass the same bill again and send it off to the president. Whats interesting too, mark meadows, a friend of mark meadows, we serve together, often disagree on policy but hes actually, hes usually not going to be part of a bipartisan deal. Many members of the Freedom Caucus dont do bipartisan deals well but the president is negotiating with people who arent going to vote for the bill that will ultimately be signing the law. Its enough to make your head spin or explode just to hear that. Because to what you were saying, there was a deal. The Senate Passed a deal which was a shortterm fund and then reversed and then do you see a scenario where house and Senate Republicans just go ahead without the president s kind of approval without more border wall funding and say, kind of play chicken with him . Absolutely. The congress can simply just send a bill to the president and let the president make a decision. Thats that simple. Now, if there are twothirds, if theres a twothirds majority in both chambers, they could override. I dont know if that would be the case, but force the president to make a decision. Hes been very unclear where he stands. Initially, he was for the bill that the Senate Passed or at least his administration was and then he reversed himself. So if i were congress, i just send him a bill and then force him to decide. One way or the other. Its really not that hard. Its one of the strangest situations where the dynamic just hasnt changed. Literally, its just no and no. I want the wall and no on the wall and doesnt seem that anyone is talking and i venture to guess no one will talk even when they get back in town tomorrow but well see together and bring me some perspective and keep my head from spinning, congressman. Thank you for coming in. I appreciate it. Happening also right now, we are watching this. Wall street trying to rebound after stocks took a beating on Christmas Eve. Its been down. Its now up. Its shaping up to be another wild day. Were going to stay on top of it for you next. Theres no place like home argh im trying. Yippiekiyay. Mom. Welcome to inside politics. Im manu raju. John king is off. Migrant children in custody after another child has died. Plus, the white house said the fed chairs job is 100 safe while markets continue to struggle. In 2020, president ial announcements are just around the corner. During the holidays, im going to

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