DHS Secretary Markwayne Mullin on Funding ICE 4/16/26

0:00Your data lives everywhere. On-prem, in the cloud, across apps. Bring it all together with EverPure, the platform that acts like a living system, delivering the latest in data performance, security, and innovation without ever slowing you down. Sophisticated enough to anticipate your ever-changing data needs, yet simple enough to feel like second nature. Tame your data chaos with EverPure and make storage and data management the simplest part of your business. Visit everpuredata.com to learn more. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading.

0:47Download the latest episode and subscribe at schwab.com slash marketupdatepodcast or find Schwab Market Update wherever you get your podcasts. Bring in show music, please. Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod. Mark Wayne Mullen, the secretary of the Department of Homeland Security. We're still enforcing immigration laws. We're still deporting illegals that shouldn't be here. We're still going after the worst of the worst, but we're doing it in a more quiet way. Starting a new job assessing threat levels across the U.S. while his department's funding remains locked in a political stalemate.

1:25The time to negotiate is done. We try to. They're not wanting to negotiate this point. When the artificial intelligence is smarter than my brain or yours, what should we do? Stuart Russell, the computer science pioneer who wrote the book on teaching AI, says it's way too late to avoid a disaster. If we are going to build systems that are far more intelligent than human beings, they're going to be far more powerful than human beings. Plus, the latest in the Middle East conflict, CNBC's Dan Murphy in the region. The ceasefire expires on Wednesday next week. The diplomacy seems to be moving. And the markets don't seem to mind a war.

2:05Mike Santoli on the 11-day rapid recovery from war-fueled losses. One of the fastest round trips in history. It's Thursday, April 16, 2026. What is Ozempic personality and why does it make life feel mad? SquawkPod begins right now. Stand by Joe in three, two, one. Here's Mike. Good morning. Welcome to Squawk Box here on CNBC live from the NASDAQ market site in Times Square. I'm Joe Kernan along with Kelly Evans and Mike Santoli. And Becky and Andrew are both here, so there's eight of us. No, they're not here. That would be fun. They're not here. That's why when I say that you're here, you two.

2:50You could fit about three people around there. We do. That's why we designed this set. But the two stalwarts are here. It's the fourth day for you. Big. So now you're just like, you know, you don't. No, I got eight hours of sleep last night. One for each kid. Yeah. Almost. We're going to tap into Santoli here. So the move in the S &P yesterday was pretty significant. In a Dow being, I think that, you know, one single Dow component can cause the Dow to do weird things. The Nasdaq was up almost 400 points. That's the story. That was the story. But the only reason I mention this, is that 11? How many days is that?

3:29Yeah, 11 days, trading days since the low, and we're up almost 11%. So, you know, I mean, tons of superlatives you can kind of surround this with. It is extraordinary to come from that degree of a pullback to an all-time high in 11 days. It's one of the fastest round trips in history. That said, I think only a dozen S &P 500 stocks are at a 52-week high. So, I mean, it doesn't invalidate anything. You cannot dismiss a 10 % or 11 % move in that period of time as a fluke or a head fake. And breakouts to new highs are bullish. They're not bearish. It's good when a market gets to a new high. But you have to reflect, I think, what the market has raced to grab for, which is the old themes of AI CapEx, hard assets related to it, and not a whole lot else, at least right now.

4:19I mean, it still is very much a NASDAQ. Is that a good sign? If you go, we can get all the way back with 12 stocks at all-time highs, and then by the time the rest of them pitch in. That's definitely the upbeat scenario. The last time you've had similar dynamics, almost all clustered in 99 and 2000. Really? Yeah. In what sense? That we would have these, like, sharp pullbacks and then sharp recoveries? You get to a new high, and it's narrow in terms of the leadership. Now, look, we were dealing with this all last year, right? And everyone said we want a broader market. We want it to be more inclusive.

4:50We want the equal weight to outperform. It did for a few months. Didn't make it a more rewarding or stable market because I personally think a broader market is not always the one that's got kind of a firm kind of locomotive that's driving it. So I think it's definitely a positive thing. You know, you want to look below the surface. The Dow's lagging a little bit. You mentioned the Ekaway, 3 % off its highs. It's positive, but I think you have to be aware that we're racing to a point where the market's getting a little bit heated in the short term as we get to the levels that we have had trouble getting past before.

5:247 ,000 capped the market for a few months before we got into Iran. You remember Jesse Livermore. I didn't know him, but one of his classic quotes is the diabolical way the market always advances. itself and it tries to take as few people as it can along so when this war started we all said you know what geopolitical things like this rarely last very long and they're very scary but it's always a good buying opportunity but again that that belief was shaken yeah whenever we said it we said well i don't know and you know what people said well this is different oils at 110 $10. Or this is different because this is Iran.

6:07This is much, much worse. This is more than, you know, Venezuela. This is going to last a long time. This is all these different things. And then you look at the chart and it's a carbon copy of every other geopolitical event that we've seen. It really shook us to the core, but it was always, if you can buy at that time, it's like you're always rewarded. Now, we could turn back down, right, if this turns into a wrap. I think that's what you have to keep in mind. is that now that we've rebuilt that much value, people have gotten more involved. You know, maybe the direction of surprise is negative if you don't get quick resolution, if oil starts to make new highs.

6:44I don't think it's about, oh, we have to retrace and go back to the lows. Nothing like that. I just think it's much more about, you know, it's not necessarily escape velocity to the upside just because we've had this quick comeback. And, you know, it's interesting, too. A lot of the, you know, the sort of real fast-moving money is the one that always kind of manifests first. And people got shaken out near the lows. They always do. Hedge funds de-risk. Hedge funds thought you could short, you know, rampantly. And they have to rebuild. And that rhymes with what happened last year, but not to the same magnitude.

7:16Because we did get a full 20 % drop in the S &P. We got full liquidation at the lows. We had retail running for the hills. This time was a little more muted. And I think most people thought that every time President Trump would say, you know what, we're very close. This is almost over. They want to make a deal. Every time he said that, I think people thought the market would finally call his bluff and would get it. But every single time he has said that, it's almost like we've made back a little bit more. We don't go back to the previous lows. Right. I don't know. No, it's true. But I also I and that's a that's a kind of a rational algorithm that the market has built around this, because I think it recognizes that to a large degree, it's a decision.

8:01Right. It's not just about oil and the decision affects what happens with oil. Exactly. A second round of talks between the U.S. and Iran under consideration as the U.S. blockade of the Strait of Hormuz enters its third day. The U.S. is also considering sanctioning global financial firms doing business with Iran. Let's get to CNBC's Dan Murphy in Abu Dhabi. Dan, good morning or good sort of later in the day to you. And, you know, we read about how these ships are turning around. The blockade appears to be in effect, although there might be some talk about trying to test it a little bit here and there.

8:35And more importantly, what's the status of potential additional negotiations? Well, Kelly, good morning to you. Markets seem to be buying the diplomatic off-ramp narrative. And for the first time since this war started, there is a real sense that we may be nearing the beginning of the end here. Pakistan's army chief flew to Tehran yesterday and was met by Iran's foreign minister. That is a significant move. And reports also suggest that both sides are now working towards what could be a second meeting in the coming days, possibly to extend the ceasefire that expires in less than a week. The White House says it hasn't formally requested a ceasefire extension, but Press Secretary Caroline Leavitt confirms Washington is, in her words, very much engaged.

9:18And then on the straight, and of course, this is the number one issue for markets, France and the UK are now stepping in as well. President Macron and Prime Minister Starmer are hosting a conference at the LEC this Friday to start planning for what happens to Hormuz the day after this war ends. Again, another really important signal there. They're talking about what could be a multinational naval mission, perhaps on the table. And that is a big deal as well, because up until now, the U.S. Navy has essentially been going it alone. And on the water, the U.S. blockade in Hormuz appears to be working very well, in fact.

9:55Ten vessels were turned around overnight. No shots were fired. But transits, we understand, remain limited. The Treasury also piled on with fresh sanctions on more than two dozen people and entities linked to Iranian oil smuggling. So the economic pressure on Tehran is really building by the hour. What we've also seen is a response from Iran. The Iranians have warned that they will shut down all trade across the Gulf, the Sea of Oman and the Red Sea if the U.S. blockade holds. That's pretty serious language, but it's not being taken too seriously by the markets. But Iran is using its words, not weapons.

10:32And I think that tells you everything you need to know right now about where they stand and just how much they want to deal. So bottom line here, the ceasefire expires on Wednesday next week. The diplomacy seems to be moving. And for now, both oil and equity markets are giving peace the benefit of the doubt. Kelly? Dan, is the diplomacy moving because of the blockade? I think that's absolutely fair to say. I think the Iranians have effectively seen this US Navy blockade come in. And because it has been successful, as I mentioned, the economic pressure is piling up. And now both sides are pushing towards a deal.

11:10The situation in Hormuz is untenable, and it cannot continue under this direction. Of course, that is also accelerating the push for what could be a diplomatic off-ramp. But then inside Iran as well, the numbers really speak for themselves. The journal was also reporting that the US and Israel hit 17 ,000 targets over the last five weeks inside Iran,$270 billion in reconstruction costs. The riyal, the currency there, effectively worthless as a store of value. So it's pretty clear the Iranians are hurting, the economy's hurting, and they're looking for an off-ramp as well. All right. Dan, thanks very much.

11:49Appreciate it for now.

12:16aerospace and machinery maker Oshkosh. Some talks are said to have started even before the Iran war. The journal says that defense officials framed the request around national security and asked if the companies, if they could quickly shift some manufacturing operations to work for the military. And we've seen this has happened before in conflicts that we've had. They're even for COVID. And they're the industrial ventilators. And yeah, the industrial powerhouse that the United States is, you know, you need factories to do these things. But that's kind of I'm sure the defense contractors are getting calls.

12:54Did you read the piece about Steve Feinberg? Oh, my gosh. This morning's recommended reading, I think. I mean, you know, Cerberus, co-found Cerberus does, you know, taking what he does with portfolio companies to the Defense Department and takes this story about the pressure maybe on these companies in particular to revamp chains. But, Mike, he's doing this with all of the contractors, basically, to the Pentagon, trying to push them to be faster and more efficient. And it goes into so much detail about that. I mean, it's also part of if you think you're requesting a$500 billion increase in the defense budget.

13:29Which was his request. A 50 % increase. Yeah, it was basically he told Trump we need to get the 5%. We can't actually use it. Like, in other words, you have to have the infrastructure in place. If you even think that there's any justification to that number, you're going to have to. I mean, are we treating this like it's a total mobilization for world war? The reason there's no such thing as a 1944 Chevy is because they couldn't make anything for the consumer market. I don't think we're back there, but I think it's interesting he wants to, you know, kind of shake up the existing defense contract.

13:58No, I have the same thought. I mean, it's a war footing as we're talking about an end to the Iran conflict that, you know, points in a certain direction beyond that for sure. I don't think you need that kind of increase or this kind of preparedness for nothing. Right. Saudi Arabia's sovereign wealth fund is reportedly considering pulling financial support for Live Golf. The upstart league that broke onto the scene about four years ago. That would raise doubts about the viability of the challenger to the PGA Tour. The Financial Times says an announcement could come as early as today, but a source tells CNBC that Live's season is confirmed to continue as planned.

14:36So we've got that going first, which is nice. if anyone ever decides to watch one of those tournaments. The news comes as Saudi Arabia's public investment fund just announced a new strategy that includes focusing on more efficient investments. And we don't need to do anything other than the last four days, Thursday through Sunday with the Masters, to see what is possible with golf and golf coverage and a venue that is magical year in and year out. And this was signaled in many ways. Did you ever try to watch one? I went to one. Did you ever try and watch one? The standings and the weird cheers and music.

15:20It's like a big drinking event. But I didn't understand how there would, what it was, it was very, it was never. But do you think there's something. You don't know what you've got until it's gone and you appreciate things if you see what, you know. I think the PGA Tour was in the doldrums a little bit. And, you know, some of the players that weren't in the top 30 thought that it wasn't satisfying to them monetarily or anything else. And maybe there were some moves around the edges that need to be made. But now we understand. Can I ask? Did you watch any of the matches? No, I mean, but I'm not a candidate to watch.

15:55To keep an eye on it. And you probably, you haven't seen Back to the Future. You didn't watch the Masters. But here's my point. So Saudi funds this upstart golf tournament that causes no small amount of turmoil. Okay? Yeah. And now, did it collapse under its own weight? Or if they're looking to make their investments more efficient, given everything that's going on in the Gulf? I mean, this was massively disruptive. And now it's going to be no more. I don't think it has anything to do with... And this was the entire strategy for their economy. I don't think it has anything to do with what's...

16:22Right, right. And fund all of these different sports and entertainment projects all over the world. You know what they were paying? The big names? Like hundreds of millions of dollars. Three, four hundred million dollars. Yeah. Promises. Of course it wasn't. Price in. Economical. Dustin Johnson. I don't know. And there was a lot of acrimony. And the one guy all along who said, I'm never doing this. I don't like anything about it. Rory, who was back-to-back. They won him on the Mount Rushmore Golf. Right. Someone should make one. I feel redeemed in my decision never to pay attention or worry about it.

17:00Cheese will be next. Coming up on Squawk Pod Department of Homeland Security Secretary Mark Wayne Mullen, he's got a new job dealing with threats inside America. Joe, call me Mark Wayne. That title never changes. Okay, I think I'd better do secretary. All while his department's funding remains shut down. That's next. Never bet against American grit or American energy. Through innovation, Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost and a fraction of the time. So while others are busy talking, we're busy building.

17:43That's Venture Global. That's unstoppable energy.

17:51The world of business is constantly evolving. and Comcast Business keeps you in step with secure AI-backed networking in more than 100 countries, powering 90 % of the Fortune 500 and millions of small businesses. And behind it all, thousands of experts answering your call at 2 a.m. like it's 2 p.m. One partner, that's it, powering how business gets done for companies around the globe. When you add it all up, no one does business like Comcast Business. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading.

18:40Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts.

18:52This is Squawk Pod.

19:22stick with with secretary. We start with this. Joe, call me Mark Wayne. That title never changes. OK, I think I better do secretary. But you look at how to phrase this question. The impression or the overall mood of the country. We've got a major candidate in one of our biggest states running on a platform that says we're going to put ICE agents in jail. And as crazy as Tom Steyer has been, I've known him for a while, about a lot of other things, there is something to this, Senator, in terms of mistakes that were made, I think, under Secretary Noem. She's gone. I mean, Democrats shutting down the government based on demands for reform that obviously are grounded in something.

20:14What do you need to do to change the whole impression of what these these are basically law enforcement officials. How did it get to this point? Well, first of all, let's go back to the Democrats demand on change. I want to let you know, I worked with a bipartisan group for five weeks before I was nominated by President Trump to, I think, run the greatest department in the nation, protecting our homeland. And it wasn't about reform. We had reform on there. This is about running scared of their primary election. And what you see this leading governor, Tom, in California talk about is absurd. I mean, ICE isn't doing anything legal, but he calls them illegal.

20:55He says he's going to arrest them, which is, by the way, he doesn't have the authority to do that. These individuals, these ICE agents are out there enforcing the laws that Congress passed. Congress passed. Congress is the one that authorized ICE agents to begin with. Congress is the one that sets the policies and the laws that they work within. And if Congress wants to change that, then Congress can. But when we were talking about actual reform, when we were in negotiations, it was we could never get to yes. We couldn't we couldn't work with Hakeem Jeffries. You couldn't work with Chuck Schumer because every time they continue to change.

21:28And even the bipartisan members I was working with was starting to get frustrated. So this isn't about actual reform to ICE. This is about political theater that's pandering to this extreme left and the Democrat Party, because we are ICE agents. In fact, all the Department of Homeland, what our goal is every single day, Joe, is to protect the homeland. I don't care if you live in California. I don't care if you live in Florida. I don't care if you live in New York or in Oklahoma. We look at all the states the same, not in color based on how you vote. It's protect the homeland. And what they are trying to do here, Joe, is defund the Department of Homeland.

22:02Now, that's like defunding the Department of War. Department of War takes care of everything off our shores. Department of Homeland takes care of our backyard, and it makes no sense to me. As far as changing going forward, Joe, we have a different approach. I think every leader in my businesses that we ran with my wife for all those years, every time you put a new manager or new supervisor in an apartment, it changed because they have a different leadership style. We do have a different leadership style. We're still enforcing immigration laws. We're still deporting illegals that shouldn't be here.

22:34We're still going after the worst of the worst. But we're doing it in a more quiet way because my goal in six months is to not have DHS on the lead story every day. We want to we want to make sure people understand we're here working for the people, not against you. What should we do, Secretary, to one of the key demands of of of Democrats? And we had one of your buddies, Senator Paul, Rand Paul, on the other day. And I know you two have a history. And he makes a valid point that constitutionally to enter someone's home, you need a judicial warrant. For going into the home to get someone, we've always had judicial warrants.

23:16They're administered and issued by local judges. It is something we fought the revolution over. You know, it was a big deal. practically for a lot of deportations, they're used, the administrative warrants, immigration administrative warrants are what's used to be able to, I guess, deport certain people. How do you walk the line there? What is, how do you honor the Constitution but practically carry out the job that ICE was, you know, that Congress passed the laws for them to do. Well, Joe, every ICE agent, every employee that's sworn in underneath DHS and myself are swore to uphold the Constitution.

24:01We're not going to break the Constitution. So when you start talking about administrative versus judicial warrants, administrative warrants is when we pull you over, let's say for a DUI and you run from us and you enter into a place of business, we're able to take that take that pursuit because of administrative warrant, we're able to take that pursuit into that house. If we're just going to knock on the door and enter and perform a search warrant looking for an individual and we're not pursuing the individual, we're always going to have judicial warrants. And that hasn't changed. When we have somebody that's evading us, like they're going from one building to the next, the next, because they have a final order of deportation, meaning that he didn't show up.