. i'm margaret brennan in washington. and this week on "face the nation" -- the high stakes diplomatic drama over the chinese spy balloon is intensifying, as we learn more about what chinese may have discovered from their soaring surveillance. in the end, it took a missile fired from an f-22 fighter jet flying over the south carolina coast to shoot down the gigantic surveillance balloon that had floated across the u.s. 60,000 feet above the ground. >> boom! >> recovery efforts are under way to determine just what the chinese had attached to that balloon. the saturday shoot down marked the end of an intense week for the biden administration. >> you were saying the recommendation from your -- was from your national security --

>> i told them to shoot it down. >> on wednesday? >> on wednesday. >> the recommendation from -- >> they said to me let's wait until the safest place to do it. >> we'll ask texas republican senator ted cruz how the incident will impact our already strained relationship with china. then, following the brutal beating of tyre nichols by the memphis police, we'll take a look at efforts to renew police reform with new jersey senator cory booker. plus, how will the new 53-year low in unemployment impact the fed's moves to lower inflation? we'll hear from gary cohn who led the national economic council under former president trump. finally ahead of tuesday's state of the union address, four new house members weigh in on the prospects of action on crime, immigration and spending in this divided congress. it's all just ahead on "face the nation." ♪

good morning. welcome to "face the nation." well, it was a drama that had all the signs of a hollywood movie. the end t chinese spy balloon's journey was somewhat predictable, but what hppens next is still very much up in the air. according to the white house, the balloon was detected a week ago in alaskan air space and was not assessed to be an intel risk or threat. it then drifted through canadian air space moving southeast and was spotted in montana, home to a u.s. nuclear missile base, where it turned into a very public diplomatic crisis. beijing insisted the balloon was an airship gathering weather data that had drifted off course. secretary of state blinken abruptly canceled his trip to china, a visit intended it thaw icy relations between the two countries. many lawmakers, mostly republicans, expressed frustration with the administration for not taking

action earlier. but the president stuck with the pentagon's recommendation to wait until the balloon moved offshore and away from civilians, still within u.s. waters. now the debris from that balloon as well as what the chinese learned from the mission i huge interest. chesernment issued a scathing reaction to the shoot down stating they strongly disapprove and that it was a clear overreshup and serious violation of international practice and warned beijing reservings the right to make further responses. i'm going to bring in our david martin for more on this story. david, the pentagon says this is part of a fleet of balloons and it was surveying sensitive military sites. do we have a sense of the damage? >> well, the pentagon claims there was no real damage because most of this intelligence they already collected with the satellites that china sends over the u.s. every day.

but it loitered over an american intercontinental ballistic field in montana, and it was fitted with what the pentagon says was cameras and antennas and you have to believe that they picked up something or it wouldn't have been worth all of the risk that they ran in sending a balloon over here that they knew was going to be detected. there's no way they could have believed that they could sneak that balloon across the united states. so i think you have to assume that they got some intelligence value out of it. i think you have to assume that u.s. got some intelligence value out of it because they sent planes up to photograph that sensor pod that was on the balloon and they've got videotapes of it. the u.s. was essentially

watching china watch us, and it's all spy versus spy stuff. over time, the spy versus spy stuff just tends to cancel itself out. one day you're up and the next day you're down. >> what can you see from 60,000 feet. what's the advantage? >> you know, back in the day, i actually went up to 60,000 feet in a -- in the back seat of a u2 and up there, it's not just like being in an airliner or only higher. you can actually see the curvature of the earth. you're in a plane that is filled with cameras, which have, obviously, a much higher resolution than the human eye, and they're not looking just straight down. they're looking out and all around them and they're sending those pictures up to a satellite, which is then relaying it down to a ground station where an intelligence analyst is watching in real time. the u-2 is of great intelligence

collection platform. it's got one anybody with a missile that can get up to 60,000 feet can shoot it down and, of course, that turned out to be the balloon's problem as well. >> which indicates this could be a problem, but, you know, the message from the administration to date has been, that this wasn't really a threat. it did throw off that attempt to reset relations with beijing, and that could have some big implications. diplomats are trying to lower the tension, but you've seen in that chinese statement there's some edge. >> they say we reserve the right for further responses, so let's see what those further responses are. are they going to send another balloon? is the u.s. going to shoot it down right away? or i think more importantly, are they going to start some serious harassment of these american reconnaissance planes that fly around the periphery of china? >> they've already been buzzing them and the u.s. has been

filing diplomatic complaints about it. i would not want to be flying the next mission around the wl provide armed escorts for those reconnaissance planes and what happens if some chinese fighters show up and you have a confrontation? >> david, always sobering to talk to you. thank you for your reporting. we want to go to dallas, texas, where we are joined by republican senator ted cruz. good morning to you, senator. >> good morning, margaret. >> this balloon traversed 11 states, but the pentagon says they were able to mitigate some of its impact. do you think there is an upside to the fact that this was captured this time? >> well, listen, i want to start by doing something that i don't do very often, which is commending joe biden for actually having the guts to shoot this down. that was the right thing to do. that is absolutely what president should have done.

unfortunately, he didn't do that until a week after it entered u.s. air space. he allowed a full week for the chinese to conduct spying operations over the united states, over sensitive military installations exposing not just photographs but the potential of intercepted communications, and more broadly, i think this entire episode telegraphed weakness to xi and the chinese government. to illustrate why, i would just ask one hypothetical question, imagine how this would have played out if nobody had taken any pictures of the balloon, nobody in montana hasn't looked up and noticed this giant balloon. when know when the biden administration knew about the balloon they said nothing, didn't shoot it down. at the end of the day i think the only reason they shot it down because it made into the news and they felt forced to as a matter of politics, rather than national security.

that's a bad message for the chinese government to hear. >> the pentagon has since disclosed this apparently happened four times before, never quite like this. back in 2020, the trump administration shuttered the chinese consulate in houston after detecting espionage. do you think there needs to be more diplomatic fallout on that scale now? >> look, i think there does. when the trump administration shut the chinese consulate in houston i spoke with the secretary of state mike pompeo about it, and what they had discovered about the espionage activities being carried out in the state of texas by the chinese government was horrifying. right now, there is a texan mark swidsen, a political prisoner, a hostage in china. he's been there for ten years. this past week i introduced a resolution on the floor of the senate with john cornyn calling on china to release mark swidan. he's wrongfully imprisoned, he's been there ten years, sentenced him to death on charges they

have little to no evidence, and i had been urging tony blinken when going to beijing to raise mark swidan's case and raise the case for mark to be released. china, if they want to demonstrate they're not bad actors and they want to demonstrate that they can aspire to being a great nation, they should release smashing swidan because great nations and powers don't hold political prisoners. >> and he is wrongfully detained according to the state department. raised to xi jinping in november, and there hasn't been aha i want to ask you about your role, you are the top republican on the senate commerce committee. you're also a dad. i know you know how hard it is to keep kids off-line in this app called tiktok. it's been downloaded 200 million times. you think it's espionage. are we at the point where we're past a ban, where this is just so embedded that you can't get rid of it? >> yeah. look, tiktok is incredibly concerning.

you're right with our kids, if you have teenagers, if you have kids in junior high or high school they're all using it and the degree to which they have infiltrated our children is disturbing. there are lots of problems with it. there are problems in terms of the messages they're pushing on young kids, body image messages, for girls eating disorders, they push one message after another. messages of self-harm where the algorithms push self-harm messages on young girls. we're seeing disturbing figures among teenagers, on upon of that the espionage risk. the chinese communist government has access to all of the information tiktok collects. i think it is a serious threat. committee, i've already sat down with each of the republican members on the committee to ask them their priorities, and there was consensus on this side of the aisle that focusing seriously on tiktok is a real priority and i think there are a lot of democrats who are very

concerned about it as well. >> as a ban or to force the sale of it? >> well, i think all of the options are on the table, and i will tell you, i encourage maria cantwell, the democrat chairwoman, i think it makes sense early on for us to have a hearing on tiktok and examine these harms very directly, how it's hurting our kids and how it's undermining national security. as i said, both republicans and democrats are very concerned about the impact of tiktok. >> should america restrict u.s. companies from investing in chinese industries and key technology sectors? >> well, i think werds we should be doing a lot to delink our supply chain from china, to make it we are not dependent on china. we saw during the pandemic when one of the major chinese state-owned newspapers threatened to cut off life-saving pharmaceuticals, like heart medication, that people depend upon, and it makes no sense for us to leave the lives of americans at the whim

of the chinese government. >> yeah. >> i'll tell you, in the last congress i introduced an amendment on the floor of the senate to block the united states government from purchasing electric vehicles or batteries that were manufactured using slave labor in concentration camps in china. china has over 1 million uyghurs in concentration camps and margaret, sadly, when we voted on it, every democrat but one, but joe manchin, voted no and right now, the biden administration is one of the largest customers in the world for the concentration camps that are carrying on murder and torture right now in china. that doesn't make any sense and it's not right. >> no. senator, i want to ask you about something at home. you introduced a bill to limit terms, to two six-year terms in office for senators. why aren't you holding yourself to that standard in you're running for a third term? >> listen, i'm a passionate defender of term limits. i think that congress would work

much better if every senator were limited to two members, every house members three terms. i've introduced a constitutional amendment to put that in the constitution. >> you're still running. >> if and when it passes i will happily, happily comply. i've never said i'm going to unilaterally comply. i'll tell you what, when the socialist and when the swamp are ready to leave washington, i will be more than happy to comply by the same rules that apply for everyone. until then, i'm going to keep fighting for 30 million texans because that's the job they've heard me to do. >> you heard me ask, if you're running for president? >> i'm running for re-election to the senate. there's a reason i'm in texas, not in iowa, fighting for 30 million texans. >> thank you very much, senator cruz, for your time we turn to democratic senator cory booker in newark, new jersey. >> we turn now to democratic senator cory booker in newark, new jersey. good morning to you, senator. >> good morning. thank you for having me on. >> i want to start on the news

of the moment. mark warner, fellow democrat, chair of the senate intelligence committee, tweeted, there is no way the communist party of china would allow a balloon like this to fly over the chinese heartland. i wonder if you personally are concerned that it was allowed to enter u.s. airspace at all? >> again, mark warner is right. we should not have had this kind of incursion into the united states, and we have a real problem with china on a number of issues from their human rights violations, to their violations of international business law, to even the challenges we've had with them on overt spying. so i'm grateful that the military took decisive action when they did and how they did, but we, obviously, have issues here. >> and the issues with espionage, as you just indicated, go into a number of different areas. due to national security concerns, congress had banned

tiktok, for example, the social media app on federal devices. your home state of new jersey has also put restrictions in peonally.t you still use i does that mean that you think it's too late to go ahead and ban this? it's already on 200 million american devices. is it just so integrated that that espionage is something we have to live with? >> no. absolutely not. there's two ways to approach this. one, the proactive step of banning and on government devices, is something that united states federal government is doing, states, and even localities are doing. the other way to go about this is going directly to the company. they are now working with u.s. intelligence folks to try to make sure that the proper precautions are taken so the chinese cannot get access and use it for spying. so this is something we have to take seriously. >> i want to ask you about the meeting you had with fellow democrats at the white house on thursday in regard to police reform. what agreements did you all come up with, and is it anything you

can get republicans to sign on express my condolences to the family of tyre nichols. this was a really horrific murder. we saw a man on the ground, handcuffed, being beaten, and eventually die, as a result of his wounds. this should not happen in the united states of america. and so i'm grateful that the president has taken decisive action in the last congress with an executive order but it falls to congress to find a bipartisan way forward to make sure that we are doing what is necessary to raise police standards and professionalism, to create more transparency and accountability in american policing. i believe we can find way forward. it is going to be more difficult in a divided congress, but i believe a moment like this, a moral moment like this, requires decisive action. >> we've been through moral moments before and negotiations have failed, as they did when you were talking to your

republican colleague, tim scott, back in 2021. he says that this house progressives police reform bill, i assume he means george floyd act, won't go anywhere, but he has given an impassioned speech saying he wants solutions that would have made a difference, specifically, more grants, more deescalation training and duty to intervene training. is this a starting point for talks? >> absolutely. i've been talking to people on both sides of of the aisle, on both sides of the capitol in the house of representatives and the senate. there is a pathway forward, and i'm going to be tireless and not stop until we do significant things to make americans safer and to make our policing standards higher. i'm not standing alone on this. the fact that we have police leaders, the largest union that represents the majority of police that we've been able to come together on bipartisan ideals, i think there's a pathway forward, although i'm very sobered in a divided congress about our ability to get it done. >> are you talking to tim scott

about this. >> i don't think tim scott and i have stopped talking. let's be clear, tim and i have been a proven partnership. >> you walked away from the talks a year ago, so you did stop negotiating. are you renewing those negotiations? >> again, tim and i have not stopped talking. we're guys that have gotten the opportunities on legislation done. we've gotten criminal justice reform done. we may have stopped formal negotiations, but he and i are friends, we may be in different parties and disagree on a host of stuff, but the reality is we're two black men in america who have had awful experiences with law enforcement that law enforcement leaders say are unjust. we're motivated. >> one issue you put to the side back in 2021 was that really hard issue of qualified immunity, which is whether to hold individual officers accountable for or the entire police department accountable civilly for police misconduct. lindsey graham tweeted holding

departments accountable makes sense because in america if you run a business and produce a product you're responsible for your actions, the same should be true tfor police departments. is he offering you the start of something? >> i've had conversations, meetings with lindsey graham and this congress as well. he is somebody that agrees with me, there is common sense here. you can't have accountability, without consequences when things go wrong. we should definitely agree that the things we're seeing too often now because of body cameras and other filming, have to stop in our country. this is wrong. i'm happy that i have republican wrong and we're trying to work something out. i'm going to continue with it. i'm grateful to the president of the united states, members of the house of representatives like the congressional black caucus, we're determined to get something done. it may be a big comprehensive bill, but in this congress that might be hard, but we can find

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ibm. let's create > we've got in good news this week. hiring surged last month but there may be a downside. mark strassmann reports. >> reporter: not since the nixon era, may 1969 has an american president watunemployment dwind so low. despite big tech's latest blood bath, pink slips at amazon, google and microsoft, american labor overall added more than a half a million jobs last month. >> we're gaining jobs which is great, but in terms of like inflation and interest rates, definitely would love to see that improve over the next year. >> reporter: but the sizzling job market complicates the fed's mission, bludgeon inflation with higher interest rates. inflation is at 6.5%, compared to this time last year. down from the june peak of 9.1%.

the fed raised its benchmark rate by another quarter point last wednesday, its eighth hike in 11 months. expect rates to go up again in the months ahead. >> we will need substantially more evidence to be confident that inflation is on a sustained downward path. >> reporter: those latest economic developments do little to calm millions of americans. ahead of tuesday's state of the union address, our new cbs news poll shows ripples of anxiety. six in ten americans believehe pessimism that has been in place over the last year. among all america's challenges our poll says the top priority, lowering inflation. three in four people said they worry about it the most. >> i think you never fully stop holding your breath when you see prices going up. >> reporter: over the next year, our poll shows roughly six in ten americans expect the economy to be in recession or slowing. many everyday americans are sweating this economy.

instability generates insecurity. >> i feel like it's kind of fallen apart, and we need to rebuild it up. i don't know what the exact answer is. >> reporter: it's vexing because of all the guesswork involved. for economists, for all of us. for "face the nation," i'm mark strassmann, in atlanta. and we'll be right back with a lot more of "face the nation." stay with us that ancient roman ? no. he's making real-time money moves with merrill. so no matter what the market's doing, he's ready. and that's... how you collect coins. your money never stops working for you with merrill, a bank of america company. i am here because they revolutionized immunotherapy. your money never stops working for you with merrill, i am here because they saw how cancer adapts to different oxygen levels and starved it. i am here because they switched off egfr gene mutation and stopped the growth of tumor cells. there's a place that's making one advanced cancer discovery after another for 75 years. i am here... i am here....

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. welcome back to "face the nation." we want to turn now to the economy and that surprising jobs report for the month of january. we're joined by a former top economic adviser under the trump administration, gary cohn, who is the vice chairman of ibm. good morning. good to have you back here. >> thanks for having me. >> so 517,000 new jobs, but a lot of companies, particularly in tech, are announcing layoffs. so exactly where is the economy headed? >> so, it's interesting. we did see the 500,000 plus new jobs, which was quite surprising, i think to many of us. i think what we're actually seeing here is a re-normalization of the new economy. a lot of jobs that we saw were jobs in the service industry. the service industry is coming back very strong because we're starting to see