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. 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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