Face the Nation: Hochul, Homan, Moynihan

[0:00] Welcome back to Face the Nation. We go now to the Governor of New York, Kathy Hochul. [0:05] Good morning to you, Governor. Good morning. You've got a big day, World Cup finals in nearby [0:12] New Jersey. I know you'll be attending those. So will the President of the United States, [0:16] the President of Mexico, the Canadian Prime Minister. Given the threat environment, [0:21] are you confident in the security measures? Absolutely. We've worked so close with our [0:26] federal, state and local partners in law enforcement. We have been preparing for this [0:31] for literally over a year, over a thousand exercises, tabletopping all the scenarios. So [0:37] we're with the best and particularly with NYPD, the world's greatest police force. I feel very [0:43] confident in our security. And we're so happy to welcome the eyes of the world. The entire [0:47] planet is going to be watching what is happening right here in the New York City area. So it's [0:52] exciting. Very exciting time for us. Truly billions watching and we will be too. Governor, [0:58] I want to ask you about a decision that you made this past week that made very big headlines. You [1:03] signed an executive order to ban large-scale data centers for a year. These are those big buildings [1:10] that help to power artificial intelligence technology centers. It was just a few months ago you said data [1:17] centers were a local decision for municipalities. What changed for you? I would say what changed was [1:24] talking to the localities and realizing they don't have the negotiating ability to or have the clout to [1:30] be able to demand that their communities benefit from this in a more dramatic way. They also don't [1:35] have the ability to insist that these companies bring their own power or pay more for the grid. They [1:40] don't have an ability to say no to tax breaks. And so I decided that I could do much more, especially [1:46] in this basically flooding the zone is what's happening now. We have over 30 applicants. So in [1:52] a very short time, I changed my position saying, you know what, the state has to lead here, but it's not [1:57] about being the first. It's about being the first to get it right. And we will get it right over the [2:02] course of this year and help those localities negotiate the right way, make sure keeping track of [2:08] how much water is being consumed, doing a study of that during this year, but also insisting that these [2:14] companies, and they're welcome with the conditions and the rules that we set forth, that they also [2:19] contribute to the larger grid, because this is a huge tax on our grid. And I want to make sure that [2:25] the power is there, our limited power is there for the large companies that are creating jobs like the [2:31] Micron that we recruited here with 50,000 jobs. So we'll get the right balance. But I'll tell you this, [2:36] people want protection. New Yorkers want protection. There's a lot of anxiety. Companies want certainty. [2:43] We'll give them both. Well, governors from red states like Missouri, Montana, Wyoming, they signed [2:49] this White House Rate Payer Protection Pledge, which I guess has AI data centers sign on to promising not [2:58] to increase consumer prices like companies, AI, OpenAI and Amazon say they'll help cover the cost of [3:05] infrastructure upgrades. Have you talked to companies, these companies, about doing the same in New York? [3:11] Why isn't a White House Pledge like that sufficient? Asking these companies to keep their word on how [3:19] much they're going to consume? I'm more realistic than I am, perhaps. I'm willing to say, I will get [3:25] it right in New York. We'll work with the companies, but also, and we're open to AI, absolutely. This is a [3:30] place for innovation is welcome and celebrated. But my view is, if you're going to succeed in New York [3:37] because of our talent and our resources and our people, I want to make sure that New Yorkers succeed as [3:43] well. So it's not a one-way street. I don't want the companies coming in and telling us how to do things in [3:49] our state. Yeah. But they can be welcome when I lay out the rules of the world, of the road, which they will [3:55] embrace. I mean, once they know how to play the game, how to do things in New York, they'll want to come, but I need [3:59] some breathing room. So my agencies, I've got seven agencies dedicated to different elements of this, the economic [4:06] development benefits for communities, how we manage how much they're going to be consuming in water, how we make [4:11] sure that, I mean, just to say, make sure the rate payers don't pay more. How do you enforce that? I'm more [4:17] realistic. I want to get things done and make it really be effective. It sounds like you want evidence to help get you to [4:23] yes. But in the meantime, you are hearing concerns from unions, for example, that this is going to turn [4:28] away jobs and that it'll send a signal that New York is not a place for companies to invest long term. [4:35] How do you address that? That's not the right conclusion from what I've done. We've been very clear. [4:40] And as someone who's created more union jobs in this state than anybody in history, the largest private [4:46] sector development in American history is going on right now with this micro. And that is 20 years [4:52] of union jobs building this. We also have tens of thousands of union jobs over years of building [4:58] the gateway tunnel, which was stymied, stuck, not happening until I until I unstuck it. So I've got [5:05] more jobs for union members. They don't have to worry about my commitment to their jobs. But [5:10] wouldn't they be rather building jobs that there's jobs that remain after the construction season is over, [5:15] that the project is built, that we actually have people, their neighbors, communities, people actually [5:20] working in those buildings with long term good paying jobs and not just focused on construction, [5:25] which is very important. So I'm asking everybody to say, take a breath. This is not the end of the [5:31] world. We'll get through this. And New York always leads in a smart way. And that's what I'm really [5:35] proud of, of what we're doing here. I want to ask you about election security. We're about 100 days [5:40] out from Election Day. States administer the elections in this country, not the federal government. [5:47] Are you getting the kind of election security resources your state has gotten in the last [5:52] few years? Do you have what you need? [5:54] No, the federal government has basically been dismantling all the protections that we've come [5:59] to rely on to protect this core essence of our democracy, the knowledge that, when you cast that [6:04] vote, that that citizen's right, that obligation to determine who our leaders are, that it is uncompromised. [6:11] It is not being challenged by the federal government just because they're so worried about the upcoming [6:17] results. That is exactly what is happening. I want everyone to focus on that. Yes, we passed the John [6:22] Wright's Voting Act. We have the toughest protections in the country. And just recently, I signed a law, [6:29] many, many protections against what ICE is doing, to say ICE agents cannot show up at polling places. [6:35] Can you see this scenario? Black and brown communities across our country and in New York, [6:40] where they're all of a sudden on Election Day, to create that fear factor and intimidation factor [6:45] that they're so good at. I do not want to see that compromise the validity of our election. So [6:52] what Donald Trump is doing right now is throwing out the biggest red herring you'd ever see and [6:58] questioning the actual results that are happening. So we're working hard on this. I'll make sure that [7:04] we are protected. But I can't count on the federal government for anything in this space, [7:08] because they're compromised. Under federal law, [7:11] armed agents are not supposed to be at election centers. The attorney general [7:15] nominee, Todd Blanche, said he'd follow the law. But it sounds like you are still concerned [7:20] that that might happen. Have you... They don't follow the law very much at all, [7:25] Margaret. They don't follow the law much at all. So, again, trust but verify. I'm going to verify and [7:31] ensure that New York state is doing it right. I don't trust that they're going to say this, [7:35] because what happens is they say the day after, like, oh, well, we didn't mean to do it. And oh, [7:40] sorry about that. You know, these are people who go around killing individuals in our streets. So [7:45] they have no credibility with me when they say anything. We will speak to the White House about [7:50] that topic shortly. Thank you very much, Governor. We'll be right back. Return now to the economy. [7:57] On Thursday, we spoke with Bank of America CEO Brian Moynihan and asked him for an update. [8:03] Well, affordability is a challenge. It talked about challenge that we see in our customer base. But [8:09] as you look at what's really going on, we see a couple of things. One is the consumers that are [8:14] 70 million consumers who spend about $400 billion plus a month are spending about five or six percent [8:21] more money this month of June of 26 versus 25. And likewise, in the first part of July here. So [8:27] they're spending money. And while the consumers reflect on higher gas prices or higher food prices [8:34] and inflation and things like that, and they're worried about it, what you see is, especially [8:39] the middle third of households and the top third of households by income, their spending is growing [8:44] faster. What's been interesting, frankly, in the more recent past, in the last couple of months, [8:48] is we're seeing the wage growth of all income cohorts kind of coalesce together, [8:53] around three to four percent, which is good. So they're holding in there, even though we're [8:57] seeing gas prices have raised the cost for drivers by 31 percent since this war with Iran began. [9:04] I know fuel inventories remain low. How are you thinking about how this geopolitical uncertainty [9:12] factors in to planning? So the price of oil and gas affects not only the gas at the pump, [9:19] which is what you're first reflecting on. And that is up. It actually started coming down. And [9:24] if as the oil prices rise, it might rise back up. But it basically, when we were running around $100 [9:29] barrel equivalent oil, you were running about a $4 and change gas price. It actually come down from [9:34] the month of May to June, because that's when the oil started flowing more. But I think if you talk to [9:39] businesses, it's different. What consumers see is in a concerning nature that is out there. But when [9:44] businesses see it, they worry about the cost of goods that's coming through the pipeline. So the goods [9:48] are being manufactured now have imported oil and gas to go into the plastics production or the [9:55] material production or whatever it was during the time when gas prices were higher. And that's why [10:01] our team has inflation staying higher all the way into 27, 28, and why the Federal Reserve will probably, [10:08] our belief is will raise rates. Whereas six months ago, they thought the Fed would be cutting rates. [10:13] They're actually believing they'll raise rates to fight off this inflation. And it will take them a while [10:16] to get through it. So raise rates, you think the Fed will act as soon as next week to do that? [10:22] Or excuse me, end of the month to do that? I don't think we, no, more towards the end of the year. [10:27] Our team has some raising rates. And I think based on the recent data that came out, they had three rate [10:32] rises, whether they hold that with some of the inflation numbers. But the reality is it's sort of [10:37] the tail end of this year into next year. And it really will depend a lot on the path of other price [10:43] cohorts other than just oil and gas at the pump. And that's the question of what's going on in [10:47] housing and food and other places where you're seeing some continued progress being made. It's [10:52] drifting down and it's drifting down slower than people would like it. But the reality is this type [10:56] of inflation takes a long time to squeeze out of the system. When you go back to the post pandemic [11:01] infusion of cash and infusion of activity, that just takes a while to squeeze out. [11:06] When we looked at Bank of America's earnings recently, you had record sales and trading revenue [11:12] in the quarter past. A lot of that, some of it churned from energy price swings, but some of it, [11:19] it seems from the tech boom of these massive AI companies and the public listings. How do you think [11:27] about that? What looks like a tech boom? It's absolutely a strong market for technology and other [11:34] IPOs. There's biotech, there's biology, there's drugs going out, getting IPO and things like that. [11:40] There's M&A activity. And so when you're talking about the investment banking activity of Bank of [11:47] America was up 70% year over year or something like that. And our peers were up like amounts and [11:52] that has a lot to do at 50% actually, that has a lot to do with the amount of activity our corporate [11:56] clients are doing in part also comparing to last year, which was a deliberation day quarter. [12:01] The good news is that our company, the nominal dollars we earned in the first quarter and [12:05] second quarter went up in investment banking, and that's reflecting the environment around us. [12:09] Yeah. Jamie Dimon said, it's getting close to as good as it gets. We just don't know long, [12:15] how long it's going to last. I guess you're in that same camp. You don't know how long this is going [12:20] to last. That's always, that's the pipeline. We measure what we call pipelines. So what's the forward [12:26] activity that you haven't yet booked? In other words, the deals in process and that activity [12:31] is as strong as it's ever been. Well, it's fascinating because Wall Street is benefiting [12:37] from this IPO boom around AI, but it is the state of New York where you are sitting right now that has [12:43] now become the first state to bar the construction of large scale data centers. There's just so much [12:50] political heat around this, this idea of not in my backyard. And the president argues this is all [12:56] a driving force for jobs and a good thing. Do you see more states following suit? [13:01] This is a classic struggle of land use and everybody's working it through and everybody [13:06] will work it through differently. Well, there's the stories about New York putting a pause on [13:10] in terms of further development while they try to figure out the dynamics of electricity, [13:14] electricity pricing, water pricing and things like that. There's other states are saying, [13:18] build it. Louisiana has a major facility going in. So I think we see it handled differently, [13:23] but it really comes down to America being America, my community, my town hall, my town meeting, [13:28] my mayor, my council deciding what they want to do or my governor. And I think that's where the [13:33] population is trying to figure it out. And so there's a pretty good tug of war going on. But I think [13:38] you know, the facts ought to get on the table. The decisions ought to follow what people want for [13:42] their community. And then frankly, the data center builders will go to the communities that want them. [13:47] So I know you've got a FIFA sign next to you and the FIFA World Cup finals are this weekend. The [13:53] world's going to be watching. You're a sponsor. Given how high ticket prices are to these [13:59] matches, have you been surprised at the turnout at the tournaments and the spending? [14:05] Absolutely not. Our team did a research piece, Margaret, that said that the total amount that is [14:11] economically generated around FIFA is about 40 billion, 20 billion would be in the U.S. And then [14:17] even we look in the host cities like at Kansas City, we can see the growth rate and spending faster [14:21] than other cities. So it's having this on the ground economic impact. And that spending is going [14:26] into what we call bricks and mortar. It's going into bars and restaurants and things like that, [14:30] not necessarily only the people in the stadium. And so it's an unbelievable phenomenon. I think the United [14:35] States hadn't seen for a while, seeing again. And to put it in context, you know, they're estimated [14:41] 2 billion people will watch the finals on Sunday, which is just an amazing amount. And that's what [14:48] the brand strategy for us was. We had a great quarter internationally. We have a great international [14:54] business. It's a very important part of what we do. You can watch our full interview on our YouTube [14:58] channel or on facethenation.com. We'll be right back. And we're back with President Trump's border [15:05] czar, Tom Homan. Welcome back to Face the Nation. Thanks for having me. Mr. Homan, we saw that two [15:12] immigrants were shot in the span of a week. There was that one in Maine that was fatal just days after, [15:18] another one in Houston. We also saw that man fleeing agents in Florida who then was struck and killed by [15:24] a tractor trailer. I know you've been trying to keep the department out of the headlines ever since [15:31] that streak in Minnesota that was deadly. How do you respond to those who say what's happening now [15:36] looks like very little has changed? Well, you know, first of all, we'll wait and see what the [15:42] investigations, how they play out, right? Because, you know, I don't want to get ahead of investigations on [15:49] who's at fault. What exactly happened? Because we all know when these investigations happen, there's going [15:54] to be cell phone video. There may be city cameras. And of course, then you've got witness statements [16:00] and affidavits from the officer and witnesses. So we've got to let the investigations play out. So I [16:05] don't want to really comment on investigations themselves. But, you know, I think, you know, [16:10] Mark Wayne Mullen, you know, took some action in concern of safety of the agents and how we do [16:17] operations. And that's why he did that, you know, that pause on enforcement, [16:23] on vehicle stops. But, you know, my concern is, I've never, I've done this since 1984. My concern [16:29] is, I think, a lot of the rhetoric that you see every day, especially in sanctuary cities and at [16:34] these protests that resist. Members of Congress saying ICE isn't a real law enforcement agency. [16:40] I think that, I actually think that emboldens some people to say, I'm not going to comply with ICE. [16:47] And I think no matter what people think of ICE, no matter what you think of immigration law, [16:51] you should always comply with law enforcement. Yes, but in the shootings in both Houston and Maine, [16:56] the people who were killed were not the intended targets. Have you caught the people you're [17:00] actually looking for? One of them, I believe we did. But, you know, that happens in law enforcement [17:05] all the time. I mean, we're working, you know, we get leads on individuals. You say, okay, well, [17:11] this subject lives at this house, he drives his car. And when that subject leaves the house, [17:16] you know, six o'clock in the morning and someone gets in that car from that house, you know, they [17:20] assume, okay, this is a guy and they'll do a vehicle stop. And depending on when they make that stop and [17:26] that person complies, either they're going to be arrested or released. That's the way it's supposed [17:30] to be. So, you know, law enforcement deals with misidentity every day across the country, [17:35] not just ICE. Every law enforcement agency, I was a cop. I know that happens. [17:39] Yeah. But these were fatal shootings, of course, in Houston and in Maine. And in Houston, [17:45] it was an unmarked car. So when you're saying don't resist, these individuals who were chasing [17:53] the man who died, they didn't have markings on that vehicle that would allow for him to know [17:59] that they were ICE. It just looked like a car coming after them in the videos. [18:05] No, they have emergency lights. Officers have insignia. So when they get out of that car [18:10] and post the car, you can clearly see the law enforcement officers. [18:13] Well, in the video that has been public, it's not a marked car. [18:17] These people, I'm not saying it's a marked car, but they have emergency lights and sirens. [18:22] So when they pull somewhere, they want to activate the emergency lights. [18:25] A lot of police departments, I'm in New York City right now, a lot of NYPD officers [18:30] are driving unmarked vehicles and that helps them find people that don't want to be found, right? [18:35] So, you know, but bottom line is, we'll see when the investigation plays out, but [18:40] they'd be alive today if they simply complied with a vehicle stop by federal law enforcement. [18:46] Just comply. If you don't think you've been treated right and they had no reason to stop you, [18:52] then there's avenues to take them to court, to sue. [18:54] Well, the family of the man in Houston said he thought he was being robbed [18:59] because it was an unmarked vehicle. Not that it was law enforcement at all. [19:03] They had emergency lights. They activate emergency lights, blue light. [19:08] You know, you know, in my vehicle, I drive where I'm with my security detail. [19:13] You've seen that on video? Because we haven't. [19:14] I've seen what on video, ma'am? [19:16] That there were lights? Because in the videos that we've seen, [19:20] there aren't. And because there weren't body cameras, [19:22] it is hard to substantiate some of what you were saying. [19:27] Okay. Well, I have not seen the videos, but I'm saying our vehicles are equipped with emergency lights. [19:32] Now, if they didn't activate the lights, again, I haven't seen that video. [19:36] If they didn't activate the lights, then there's an issue there, right? [19:39] But I'm saying they're equipped with lights, so let me just caveat that. [19:43] They should have been equipped with lights and sirens, but I do not know, [19:47] specifically, if they activated those lights. [19:50] As far as the cameras, Margaret, you know, everybody in ICE would have a camera now [19:54] if the government wasn't shut down by Democratic members of Congress. [19:57] There was money in that bill that they held up. [20:00] Yeah. [20:00] I think it was $120 million to equip all ICE officers with cameras, [20:03] but because the government shut down, we're behind on that. [20:06] But they got $20 million in April. [20:07] The cameras had been purchased. [20:07] Mm-hmm. [20:09] It wasn't enough. The $20 million may have bought some cameras, [20:12] but it doesn't buy the storage. It doesn't buy the resources we need for the thousands of foyer [20:19] requests we're going to get. There has to be storage capability to hold these videos for a long time. [20:24] So it didn't fund everything, but now we have the funding after reconciliation. [20:28] The cameras have been purchased. Right now they're training the trainer [20:31] and deploying the cameras nationwide. [20:33] Do you think it was a mistake for the Trump administration to have [20:36] proposed the body cam expansion at the beginning of the term? [20:39] Because I know you have advocated for body cameras, and now you're playing catch-up, right? [20:43] I think body, yeah, I think body cameras are the way to go. [20:47] I think body cameras let the American people know what that officer sees when he takes that action. [20:53] When will everyone get one? [20:54] You can have a cell phone camera from a witness on the side. You can have city cameras or whatever, [20:58] but I want the American people to see what that officer sees when he makes the decision and takes [21:04] an action. I think the American people need to see what that officer sees and hears. [21:08] I think it's important. And if you look at the data, body cameras actually exonerate agents [21:13] more than they provide evidence of wrongdoing. [21:16] Well, yeah, and it would certainly help with reporting and public knowledge. [21:20] Let me ask you about something else. The DHS secretary has said they went through public [21:25] records and identified 250,000 non-citizens in four states, California, Pennsylvania, New Jersey, [21:32] and Nevada. I know those states don't share their voter rolls, so it looks like they're just pulling [21:36] this from public information. For those states, are you planning operations before November? [21:43] And you do acknowledge that it would be illegal to have federal agents at election locations? [21:50] You know, that's a question of DHS. I'm not in the loop on that. I'm not familiar with [21:57] the information that DHS just released. I'm not in the loop on that. I'm at the White House of [22:03] Board of Arts, so that'd be a question for Mark Wayne Mullen. I'm not in the loop on that. [22:06] Okay. All right. Mr. Homan, thank you for your time this morning. We'll leave it there. [22:12] Good seeing you, Margaret. We'll be back in a moment. [22:16] That's it for us today. Thank you all for watching. Until next week, [22:19] for Face the Nation, I'm Margaret Brennan.