What A Day - Hut, Hut, No Hike

Episode Date: June 15, 2023

For the first time since March 2022, the Federal Reserve decided to pause interest rate hikes. The Fed – which has raised interest rates ten times in the past fifteen months – said it wants to take some time to evaluate how the economy is reacting to previous rate increases.On Wednesday, a grand jury indicted Daniel Penny in connection to the death of Jordan Neely. Penny – a former marine – was charged with second degree manslaughter last month after he fatally choked Neely – an unhoused Black man – on a New York subway train May 1st.And in headlines: a federal judge has allowed writer E. Jean Carroll to revise her defamation lawsuit against former President Donald Trump, UPS drivers reached a tentative agreement with the delivery company to finally install air conditioning units in their trucks, and Instant Pot has filed for bankruptcy.Show Notes:What A Day – YouTube – https://www.youtube.com/@whatadaypodcastCrooked Coffee is officially here. Our first blend, What A Morning, is available in medium and dark roasts. Wake up with your own bag at crooked.com/coffeeFollow us on Instagram –https://www.instagram.com/crookedmedia/For a transcript of this episode, please visit crooked.com/whataday

It's Thursday, June 15th. I'm Priyanka Arabindi. And I'm Josie Duffy Rice. And this is What A Day, where we have some very serious questions for AI Jesus. Yeah, I kind of want to hear the story in his own words. Like, I would love to know what went down. And I feel like AI Jesus maybe could give that to us. I have a lot of questions about his friends, about the disciples, just like what's the

vibes. Yeah. What is the vibe? Where are they now? Where are they now? Where are they now? On today's show, a federal judge has allowed writer E. Jean Carroll to revise her defamation lawsuit against former President Donald Trump. Plus, Instant Pot has filed for bankruptcy.

But first, for once, we have a story about how the Federal Reserve didn't raise interest rates. So for the first time since March 2022, the Fed decided to take a pause on its historic rate hiking campaign yesterday, saying that they wanted to take some time to evaluate how the economy is reacting to previous increases. If you have been following along for some time, you know that the Fed has raised interest rates 10 times in the past 15 months in order to combat inflation. Feels like we talk about this pretty regularly.

As always, it's me leading the charge on the story. Wild how that happens. Our resident economist. Yeah, seriously. But interest rates are now at 5.25%,

which are the highest they have been in 16 years. Casual. Yep. No big deal. Nothing to see here. Trying to do the math on that. That'd be like 2007.

That math made it seem actually more recent, which I don't think was the intended effect of that. I'm like 2007, like five minutes ago. Exactly. 2007 was 16 years ago. That's offensive to me personally. Exactly. 2007 was 16 years ago. That's offensive to me personally. Okay. So how should we be interpreting this pause? Like is inflation over? What does this mean? Yeah. It's definitely not over, sadly. Inflation does appear to be dropping, which is good, but it's still at around

4%. And the Fed's goal is to get it down to 2%. So we still have a bit to go to get there. Last June, things were very different. Inflation hit a peak of 9.1%. It was a bad time, if you remember. But the decrease that we have seen since then has a lot to do with the drop in gas prices. So I mean, like we shouldn't fully be thinking we're in the clear and we're out of it. It mostly is just due to the fact that gas prices dropped so dramatically. But inflation is still very much affecting things like housing, service prices, food, things that are still very central to most people's day-to-day lives. And I think the Fed is being honest about why they want to pause here, that they want to see how the

consumer price index, the employment rate, and other indicators of our country's economic health change over the next few months before making their next move. It gives them some more time to observe how the rate hikes that they've already put into place are affecting the economy. And on the flip side, it prevents any inadvertent slowing of the economy as a result of raising rates too quickly. But this probably isn't the end of these hikes. It's very likely that we will see one to two more rate increases before the end of the year. So this is not over quite yet. It is just a pause for now. Great. Yeah. Well, you know, I guess we'll take what we can get. Yeah. It's a

tricky situation. So what does this all mean for people who maybe spend money and should not spend as much money as they spend? Or maybe they think it's fine, but the person they live with says they should spend less money. I'm not thinking of anybody in particular. No one's coming to mind. No. It's not ringing any bells.

Well, for that very specific situation that is not at all relatable, I think higher interest rates generally make it tough for people who borrow money in pretty much any way, whether that is car payments, mortgage rates, credit card debt, business loans, student loans. Borrowing money in general becomes more expensive every single time the rate increases. And just because the rates didn't increase this time doesn't mean that it's all solved. Most consumers will still spend but continue to be cautious because interest rates, as we said earlier, they're still up there, highest they've been in 16 years. Inflation, of course, is still very much here, hopefully not to stay. It has been getting better, but it is expected to be slightly higher at the end of this year than was originally anticipated. So that's not ideal. Again, a lot remains to be seen. We'll see kind of, you know, how things go during this pause, what they find out about how the economy is reacting, how, you know, when they make that one or two extra rate hikes, how they react.

But I think the big takeaway from all of this is that inflation is really tricky to handle, to manage, to try to bring down. The Fed is basically on a tightrope trying to get it to come down. You know, if they go too far, they have put a pause on the economy and growth. They've slowed things down to a bad level. They go too far the other way, we're all suffering under high inflation. So like they're sort of in a shit position, I would say. It's really not ideal. It's not great. It's also, you know, the economy is mostly vibes is a thing that I'm only recently realized. So yeah, I don't know if the vibes are great, but I think we all want the

vibes to be better. Right. We can all agree on that. We all want the vibes to be better. That's my economic analysis, everybody. Hope you loved it. Thank you for joining us here on WOD, Meet the Economist. Okay. In other news, Daniel Penny was indicted on Wednesday by a Manhattan grand jury about a month after he killed Jordan Neely on the New York City subway. That is according to sources familiar with the case. I'm sure we all remember this story. Penny, a former Marine, held Neely in a chokehold for what some estimated to be 15 minutes. Until this point, it's been unclear exactly whether Penny would face charges in this case. However, that question has basically been answered now that the grand jury has indicted him.

Yeah, it was a little unclear for quite some time there, actually, what would happen in this case. But what do we know about the charges that he is facing? So the Manhattan DA has not confirmed any of this, and we probably will not know until he's actually arraigned, which is going to happen in the next couple of weeks, probably. The New York Post is reporting that the grand jury indicted him on one charge of second-degree manslaughter and another charge of criminally negligent homicide. And I trust the New York Post on this one. This is something the New York Post would be able to find out. Yeah. I would say this probably falls into their specialty, though I probably don't

want to hear any of their opinions on this situation. Yeah. If you need a source at the Manhattan DA's office, they're probably your people. That's my guess. Now, keep in mind that this is happening after Penny became basically a hero on the right. I checked just like a few minutes before we started recording. His legal defense fund has raised almost $3 million. is happening after Penny became basically a hero on the right. I checked just like a few minutes before we started recording. His legal defense fund has raised almost $3 million. So wild. It's so nuts. You maybe remember people falling like all over themselves to explain why killing people on the subway is actually totally cool and fine. Just a few weeks ago, we'll never forget it. We'll not forget that. Ron DeSantis tweeted out his fundraising link. It was just really dark

all around. But, you know, nobody is surprised. Yeah, just the absolute worst people rallying around this man. And that can't be a good sign. You can't be like sitting there feeling like you did something right if it's all these people trying to boost you up. But has Daniel Penney had any response to these charges so far? Well, not directly to the charges, though his lawyers have said that it, quote, should be noted that the standard of proof in a grand jury is very low, which they're right about, okay?

There's a famous saying, any decent prosecutor could indict a ham sandwich, basically saying, like, it's not hard to be indicted by a grand jury, right? So this isn't at all a guarantee that he's going to be convicted or anything. Got it. But it is even still sort of a surprising move, given that for a second there, it looked like there was going to be no action by the dean's office. Right, nothing was going to happen for a second, yeah. And though he hasn't commented about the charges, Penny did release some, let's just say like strange video just days before the charges were announced.

That was like, I think supposed to make him seem more relatable, maybe more convincing. Sorry, it's not a relatable situation at all. It's not a relatable situation. I've never killed anybody, so. I didn't relate, I'll say that. I was not convinced, so take a listen. The three main threats that he repeated over and over was,

"'I'm gonna kill you. "'I'm prepared to go to jail for life, "'and I'm willing to die.' "'I was scared for myself, but I looked around. "'I saw women and children.' "'He was yelling in their faces saying these threats. Okay, I just want to say some things. Number one, it does feel worth noting that I have not personally read or heard of anyone claiming that Neely was making direct threats to kill people. That's new. So who knows? I wasn't there. You know, people definitely noticed that Neely was making direct threats to kill people. That's new. So who knows?

I wasn't there. You know, people definitely noticed that Neely was desperate and seemed upset and hungry. He also suffered from mental illness. But some of this Daniel Penny story is seeming, it seems interpretive. Yeah, it's a bit different than what we were hearing from just about everybody else. Yeah. And I have to say, if I were this man's lawyer, I would not let him do interviews. Yeah, what?

Just don't talk. Just don't talk. Why are you out here making videos? Like, stay at home. Don't make videos. Stay home. A few weeks ago, he told the New York Post that— The Post again.

Yeah, the Post is back. He told the New York Post that accusations of racism were, quote, a little bit comical. Everybody who's ever met me can tell you I love all people. I love all cultures. I was actually planning a road trip through Africa before this happened. Unclear how that is pertinent to anything we're discussing. Wild. Not to make light of this situation at all, but it's giving Michael Scott.

Oh my God. Yeah, this is comical. This is a crazy thing to say. This is a nuts thing to say. Absolutely nuts. Don't call anything about this comical. Just don't say it. No.

And don't talk about Africa. Don't talk about Africa. We get it. No. And don't talk about Africa. Don't talk about Africa. We get it. This is just like some shit that you know somebody would say after they said the most absolutely horrific racist thing you have ever heard in your life. Right. And they're like, no, no, no, actually I'm taking a vacation to Africa. So like, I'm going to Safari. I love everybody. Did you know? Right. Exactly. Wow. That's a lot. That's a lot. That's truly something. More on all of this very soon, but that is the latest for now. We will be back after some ads.

Let's wrap up with some headlines. Headlines. Elizabeth Holmes, the disgraced founder and ex-CEO of failed biotech startup Theranos, is trying to get out of paying monthly restitution to the victims of her fraudulent scheme. This comes after Holmes was sentenced to more than 11 years in federal prison late last year for lying to investors about her company's blood testing capabilities. Holmes is currently serving out her sentence in Bryan, Texas,

but her lawyers have since appealed her conviction in hopes of getting it thrown out. Federal prosecutors filed a motion last week proposing that Holmes pay victims either $250 a month or 10% of her income after she is released from prison, whichever amount is greater. But her lawyers argued on Monday

that Holmes has, quote, limited financial resources and that mandating monthly restitution payments would significantly impact the outcome of her trial. The only thing Holmes' lawyers did not object to was a proposal that would have her pay $25 in restitution per quarter during her prison term.

Both sides of the case have yet to comment on the issue. A federal judge ruled on Tuesday that writer E. Jean Carroll is allowed to amend her 2019 defamation lawsuit against former President Donald Trump and seek more damages. Carroll requested to amend the lawsuit after Trump made disparaging public comments about her during a CNN town hall last month. Who could forget? Who could forget? Yeah, the day after the verdicts came down, Trump was just there, just defaming her once again, which we all knew would happen. So thank you so much, Chris Licht, for subjecting us all to that. Trump's comments came after a separate

case in which a civil jury found that Trump sexually abused and defamed Carol and ordered him to pay her $5 million in damages. The day after that verdict was delivered, Trump went on CNN and repeated claims that he didn't know Carol and accused her of making up the story. Carol's amended defamation lawsuit seeks at least $10 million in damages for Trump's comments during that town hall and the statements he made in 2019. The news came on the same day of Trump's arraignment in Florida related to his mishandling of classified documents. When it rains, it pours.

Truly. That's like three separate, massive legal things to be embroiled in. And I don't even think that's the full extent of it. Just this week, two federal judges ruling against you. Just this week. And it was his birthday yesterday. You know. That's a rough one.

Not how I would want to spend my 119th birthday or whatever. No, having to basically be told that you'll probably have to pay this woman another $10 million. But, I mean, she should get every single cent of it. She deserves it. Look, if I had to pay someone $5 million for saying not nice things about them, I would never speak their name again. Right! For fear of me accidentally, much less on national television that same night. But, you know, he's different. He's not like us. No, no. I think that much we know. Right. For fear of me accidentally, much less on national television that same night. But, you know, he's different. He's not like us. I think that much we know. Yeah. The U.S.

government on Tuesday extended temporary protected status to over 300,000 immigrants from El Salvador, Honduras, Nepal and Nicaragua, many of whose deportation protections and work permits were targeted by the Trump administration. The move reverses a Trump-era decision that would end temporary protected status for these four countries and grants existing holders an extension of 18 months. Temporary protected status, or TPS, was passed into law as part of the 1990 Immigration Act.

It allows immigrants who have been in the U.S. for years to apply for driver's licenses, get Social Security cards, and obtain work permits without fear of deportation. But it doesn't provide a path to citizenship or permanent residency. The extension of TPS by the federal government is a big deal because immigrants will now be able to renew those work permits. The Biden administration has used TPS at an unprecedented scale compared to the Trump administration, which tried to end most TPS programs,

though such attempts were blocked in federal court. UPS drivers came to a tentative agreement with the delivery company on Tuesday night to finally install air conditioning units in their trucks amid tense ongoing labor talks between the two parties. According to the Teamsters Union, which represents 340,000 UPS workers across the country, the agreement mandates that all UPS vehicles purchased after January 1st of next year must come with an air conditioning unit, as well as exhaust heat shields and air induction vents designed to cool down their interior. Labor leaders have spent years demanding that package delivery companies increase heat safety measures for their drivers, many of whom

work long hours in the summer heat that can drive at temperatures up to 150 degrees inside their trucks. Jeez. That's ridiculous. The heat is so bad that more than 100 UPS workers have been hospitalized for heat illnesses, and some of them even have come close to kidney failure as a result. It took you this long? If hundreds of people are like having the same problem, you don't think like maybe we should do something to stop these people from falling over and like being hospitalized? It's so upsetting. UPS workers have threatened to strike in recent years as broader negotiations for a new five-year labor contract have stalled. And while air conditioning units were one of the Teamster Union's

longstanding demands for the company, Tuesday's agreement does not avert a potential work stoppage. UPS workers have been voting on whether to authorize a strike over the past week. If they vote yes, a nationwide walkout could be called as soon as August 1st, the day after their current contract with UPS expires. The results of the strike authorization vote will be announced tomorrow. Wow. Okay. That wasn't even on my radar. A UPS strike. That is something I do not think we as a country, as a people are equipped to handle. So I feel like these workers should get absolutely everything they want and then some because our whole world will come to a grinding halt. I'm glad that every vehicle built after

January 1st is going to have to have air conditioning, but they're just not going to buy new cars. They're not going to buy new cars. Tons of people are still going to be driving without it. I mean, come on. Like that's wild. That's the whole job. The whole job is driving around. I didn't realize I could get that hot inside those trucks. Me neither. That's crazy. It's really wild. Well, it appears that the Instant Pot has lost its name. Instant Brands, the maker of Pyrex glassware and the famous Instant Pot, has filed for bankruptcy. The pandemic offered a boom in spending on home goods,

but Instant Brands, which has more than $500 million in assets and liabilities, has suffered from decreased sales in the years since. CEO Ben Gadbois said in a statement that the tightening of credit terms and higher interest rates put a lot of financial pressure on the company and they could no longer keep up. The Instant Pot, which is an electric pressure cooker,

became a staple appliance in kitchens across the country when it was launched in 2009. You couldn't avoid it. It was everywhere, used in every single recipe. But its sales have fallen by half over the last three years. This bankruptcy filing comes only three months after the Federal Trade Commission said that Instant Brands had to stop falsely claiming that all Pyrex glassware

was made in the U.S. when many cups are manufactured in China. Just a completely wild, separate detail. The plot thickens here. Just feel like you didn't have to tell that lie. Why? And if it wasn't a lie and it was just a misunderstanding, you should have Googled. That feels really straightforward. That tangent, that part of the story, very unclear how we got here. I feel really sad. Like, I don't know. It's a real, especially if you like watch those cooking videos, if you like read recipes on the internet, the Instant Pot, that'll be like a real relic of our times. Yeah. Well, maybe this is a way we start our new business. Flipping Instant Pots.

Flipping Instant Pots. Yeah. If you wonder why you can't find them anywhere, it's because Josie and I have bought the remaining stock of Instant Pots. And we will be selling them on eBay for three times the price. And no one can get mad at us because we are good, nice people. Exactly. And it's not like toilet paper or hand sanitizer. Exactly. We are not keeping the real necessities out of your hands. Yeah.

So it's okay. And those are the headlines. Two more things before we go. Summertime is here, so it might be a good time to consider leaving the house again. Eh, we'll see. We here at WOD recommend traveling light, and the Cricket Store's new belt bag is just the thing to keep your stuff in tow, whether you're hitting the next pride parade or at just out and about touching grass. Imagine that. You can wear it as a crossbow back or a fanny pack. You do you. Whatever you want. And you can also choose between four of our

favorite taglines on the strap, like, let women run shit, or phone keys hush money. I like the latter one. Phone keys hush money. Yep. Head over to crooked.com slash store to get yours today. Plus, House Republicans this week advanced a resolution to censure Democratic Congressman Adam Schiff, who has been one of their main boogeymen since the early days of the Trump administration. The resolution was basically a way for Republicans to take their fury out on Adam Schiff, who was instrumental to Trump's first indictment over the insurrection.

The resolution failed Wednesday afternoon, so fortunately for Schiff, he doesn't have to pay the $16 million fine, but it displays the shocking lengths that the far right will go to to try and scare politicians from pursuing justice. Here is Congressman Schiff talking with Crooked's editor in chief, Brian Boitler, about the hypocrisy of the Republican Party. What concerns me the most,

frankly, is, you know, this relentless assault on the Justice Department, on the FBI, by not just Trump, but all the other Republican candidates who seem to want to have it both ways. They're either attacking Trump over what he did and attacking the Justice Department or just defending Trump and attacking the Justice Department. They're trying to breed a lack of confidence in our justice system. That's going to have long-term damage. For more on what the Republican Party's continued loyalty to Trump means for U.S. institutions and what Schiff thinks of his $16 million tab, tune in to this week's episode of Positively Dreadful airing tomorrow.

That is all for today. If you like the show, make sure you subscribe, leave a review, hold on to your Instant Pots, and tell your friends to listen. And if you're into reading and not just how to reduce inflation, like me, What A Day is also a nightly newsletter. Check it out and subscribe at crooked.com And tell your friends to listen. the fact that you can have a billion dollars and then have zero dollars is that maybe one day that will happen to Elon Musk. I don't need to be a disgraced girl boss. That's okay. Yeah, no, but we'll take like a slower hill up. How about that? Sure. And no come down. No come down. Perfect. Great. What a Day is a production of Crooked Media. It's recorded and mixed by Bill Lance. Our show's producer is Itzy Quintanilla. Raven Yamamoto and Natalie Bettendorf are our associate producers. And our senior producer is Lita Martinez.

Our theme music is by Colin Gilliard and Kashaka.