The following Eliyanj has an interview transcript with Chief Economic Advisor Mohammad L-Ariane, which aired on 24 August, 2025 on “Face the Nation with Margaret Brainon”.
Margaret Brainon: We now turn to the American economy. Mohammad is the chief economic advisor in L-Ariane Allians, and he connects us to Greenwich, Connecticut this morning. Good morning to you.
Mohammad L-Aryan: Good Morning, Margaret.
Margaret Brainon: So we saw the Federal Reserve Chair Signal on Friday that the Fed is starting to reduce rates very soon as expected, but he also cited economic growth and a cooling job market. Then why did the financial markets rally?
Mohammad L-Ariyan: Because he finally pursued to the risk that is currently the most important to the American economy. The fed has to provide two things, maximum employment and value stability, and the fed is slightly more inflation and looking at a weak labor market. And what Powell finally did, and many of us feel that they should have done so earlier, did they say that the risk for the employment side is more than the risk of the side of inflation, and therefore a warrant to cut interest rate. As you know, many of us realized that he should have cut last month.
Margaret Brainon: Well, Fed Chair said that much more tariffs are remakeing the entire global trade system. Tight immigration policy has slowed down labor growth, and there are large taxes and regulation changes that you cannot do enough, you know, determine at this point, but it is very uncertain. Since economists have to manufacture models and data, how do you guess where we are going, so basically, he is saying that throw your model out?
Mohammad L-Ariyan: So one of the problems is that he has not seen enough. He has been dependent on a lot of data, and so he is late. See, something promising in our future, and it is productivity growth that comes from exciting innovation in life science and robotics and other fields. We just have to manage a few months in the next period. And if that challenge is misunderstood, we will not be able to achieve opportunities that we have that offset a lot of structural headwinds, and include high debt and high deficit.
Margaret Brainon: I want to ask you about something that we were discussing with the Congress Lawller, and this is an unusual decision for the US government to take a stake in Chip Maker Intel. The company has been struggling late and its CEO was criticized by the President of the United States. He was criticized by the Chairman of the Senate Intelligence Committee, Tom Cotton. President Trump mentioned all of them on Friday, and he said this.
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President Donald Trump:
He went to the desire to keep his job and gave us $ 10 billion to the United States. So we raised 10 billion dollars. And we do a lot of such deals.
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Margaret Brainon: The President said that the CEO wanted to keep his job, so he offered a 10% stake in his company. Is this a new era for American policy? I mean, the central plan of the economy?
Mohammad L-Ariaan: I don’t think so, Margaret. See, as the Congress said, it is good to send the message that companies will get nothing for nothing, and this is what they have used since 2008, all bailouts. And what are they saying now–
Margaret Brainan:-Whatever was paid back-
Mohammad L-Ariyan: The back paid back, but at that time, the government took heavy risk in many areas. The most important distinction, if I, here, is between ownership and control. Yes, the government may own 10%, but it should not be controlled how this company manages its affair, because once we go on the road that is a really dangerous road, and which makes America really special, which is a dynamic, entrepreneurial economy.
Margaret Brainon: And I believe the Commerce Secretary said that there will be no control, but it is something to see. I also want to ask you about political pressure, not only on the Federal Reserve Chair, which you have nodded, but the President is now threatening to set fire to Federal Reserve Governor Lisa Cook. They are publicly urging an inquiry without revealing evidence of hostage fraud and an inquiry on it. In fact, the Department of Justice wrote a letter to Chair Powell, encouraging him to remove. Are you worried that this is a pattern of political intervention with the Federal Reserve?
Mohammad L-Ariane: So these allegations are unproven, and it is important to stress. Just after saying this, it is the fifth time in the last five years that allegations have been made against a fed officer. And already four of them have to resign. So I am worried about the fact that it seems that there is a culture that has developed in the fed resulting in these four resignations. But I am very worried about preserving Fed Federation. And an independent central bank is important for the good of the economy, and there are many reasons for it. So you know, someone has to distinguish between the two. I can’t talk to unproven allegations, but I think it is really important to defend the central bank independence.
Margaret Brainon: Well, as I understand it, the Governor has said that he wants, you know, share information, and refuse to do wrong things here. But just the fact that it is the President who is focusing on him, it does not suggest that even though Jerome Powell steps as the head of the Federal Reserve, it is not going to stop this large spotlight on the central bank that is so powerful, and that you cannot overcome the fear of political intervention?
Mohammad L-Ariane: Yes, and I- my fear and my concern is that the long chair Powell is in its position, and it exits in May, till then he is in his position till then, the more it acts as a magnet to attack, not only deep attacks from the President, but are very widespread from the political system. And it is one thing that many people are worried.
Margaret Brainan: Mohammad L-Ariaan, thank you very much for sharing his insight today. We will leave it there. We will come back in a moment.
