Full transcript of "Face the Nation with Margaret Brennan," Aug. 23, 2026 — CBS News — Top

RESOLVING THE LEDGER

Full transcript of "Face the Nation with Margaret Brennan," Aug. 23, 2026 — CBS News — Top | AIPROPX

On this "Face the Nation with Margaret Brennan" broadcast, moderated by Margaret Brennan:\u00a0Neel Kashkari, Minneapolis Fed president and CEODr. Mehmet Oz, Centers for Medicare & Medicaid Services administrator \u00a0Dr. Scott Gottlieb, former FDA commissioner \u00a0Rep. Byron Donalds, Republican of Florida and candidate for governor\u00a0Rep. Seth Moulton, Democrat of Massachusetts and Senate primary candidateClick here to browse full transcripts from 2026 of "Face the Nation with Margaret Brennan."\u00a0 \u00a0MARGARET BRENNAN: I\u0027m Margaret Brennan in Washington.And this week on Face the Nation: new warning signs for the U.S. economy and mounting costs for American families.As Washington prepares for race cars to speed down its streets today, many Americans are focused on a different pace, the struggle to keep up with the rising cost of living and a growing sense of economic uncertainty, and a new trade war this weekend with neighboring Canada, with the U.S. moving to raise tariffs on everything from building materials to hockey sticks and Canadian alcohol.(Begin VT)MARK CARNEY (Canadian Prime Minister): That America is trying to break us so they can own us.(End VT)MARGARET BRENNAN: Will prices be pushed even higher?We will discuss the outlook for the economy with Minneapolis Federal Reserve President Neel Kashkari.Then: another growing concern for Americans, the skyrocketing cost of health care. We will hear from the administrator of Medicare and Medicaid, Dr. Mehmet Oz. Former FDA Commissioner Dr. Scott Gottlieb will also join us to discuss the growing list of food recalls and outbreaks as President Trump makes a new pick to lead the Food and Drug Administration.Finally, Florida Congressman Byron Donalds, fresh off his win in the GOP gubernatorial primary, will join us.And we will ask Democratic Congressman Seth Moulton of Massachusetts about his push to oust a senator from his own party.It\u0027s all just ahead on Face the Nation.Good morning, and welcome to Face the Nation.Americans are waking up to an economy in uncharted territory. The country\u0027s debt hit a record $40 trillion last week, and fears of persistent inflation and uncertainty about the Iran war sent financial markets reeling, driving borrowing costs, including those for the U.S. government, to their highest levels in two decades.The Treasury Department intervened midweek to help, but, by Friday, the relief had evaporated. For everyday Americans, higher yields benefit savers, but they make mortgages and other loans more expensive.For more on what\u0027s next for the American economy, we\u0027re joined by Neel Kashkari, president and CEO of the Federal Reserve Bank of Minneapolis.Welcome back to Face the Nation.NEEL KASHKARI (President, Federal Reserve Bank of Minneapolis): Thanks for having me, Margaret. Great to be with you.MARGARET BRENNAN: So, when we spoke back in may, I asked you about the debt level America has. You said you didn\u0027t see an immediate crisis brewing, but at some point this is going to become a problem.We just hit $40 trillion. Are we at the point where this is a problem?NEEL KASHKARI: Well, Margaret, if you look at the Treasury yields, yields are high, 4.7 percent, for example, on the 10-year Treasury.They\u0027re high relative to recent history. They\u0027re not high relative to more \u2013 longer American history. In the early 2000s, the 10-year Treasury and the 30-year Treasury were around these levels. In the \u002790s, They were meaningfully higher than they are now.And there\u0027s no sign of Treasury market dysfunction or breaking down in financial markets. There are a lot of different factors that go into those Treasury yields. Inflation and the outlook for inflation is one of those factors. That\u0027s the Fed\u0027s job.But there are many other factors. Like, it\u0027s the A.I. investment, government borrowing, economic growth. All of those end up going together to set these long-run Treasury yields.MARGARET BRENNAN: But we saw this bond sell-off. We saw extraordinary action by the Treasury secretary, Scott Bessent, to intervene.He said what was happening was due to traders having bad information. Is that what\u0027s happening?NEEL KASHKARI: Well, I\u0027m going to leave it to the treasury secretary to manage the Treasury debt market. That\u0027s the job of the Treasury Department. The Fed\u0027s job is really to take care of the inflation piece of it.We are all absolutely committed to getting inflation back down to 2 percent. But, long run, it\u0027s going to be fundamentals of debt issuance, of investment, of economic growth and productivity. Long run, that\u0027s what sets the Treasury yields, not just in the U.S., but government bond yields all around the world.MARGARET BRENNAN: No. And I appreciate, as a Central Banker, you don\u0027t want to get involved in fiscal policy or what the markets are doing day to day.But there is this debate right now about whether something more fundamental is shifting. Investor Mohamed El-Erian wrote in "The New York Times": "There\u0027s a breathtaking leap in the cost of borrowing. If it persists, it could mark the beginning of a structural economic shift more enduring and more globally consequential than most previous episodes of market volatility."Is that overstating things? Are we in the midst of a huge shift?NEEL KASHKARI: Well, there are a lot of different factors going on at the same time. So the stock market, as you know, has been really bullish for the last several years, really excited about A.I. and the prospects that will lead to productivity growth.A more optimistic take on these market moves is that the bond market is catching up to the stock market, and the bond market is seeing a higher growth trajectory. If the global economy is in for higher productivity growth and higher growth, you would also expect to see higher yields all around the world.Now, I\u0027m not endorsing that view. I\u0027m not saying that\u0027s right...