WEBVTT - Louisiana Senator John Kennedy Talks Impact of Iran Pressure Campaign 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Joining us now live from Capitol Hill is Republican Senator

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<v Speaker 2>John Kennedy of Louisiana. He's a member of the Senate

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<v Speaker 2>Banking Committee as well as the Budget and Judiciary Committee. Senator,

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<v Speaker 2>Welcome to Bloomberg TV and Radio. It's great to have

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<v Speaker 2>you on balance of power, especially on a FED day,

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<v Speaker 2>of all days. If the FED didn't hike today, are

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<v Speaker 2>you concerned that they might have to do so just

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<v Speaker 2>ahead of the midterms.

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<v Speaker 3>Well, they might. I guess I'd make two points. Number

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<v Speaker 3>one a shot blue shide of the big picture. I

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<v Speaker 3>wouldn't trade the American economy right now for any economy

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<v Speaker 3>in the world, not China, not Germany, not anybody in Europe,

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<v Speaker 3>not Canada.

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<v Speaker 1>Number two.

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<v Speaker 3>I think the FED didn't hike because they don't know

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<v Speaker 3>what to do now. They're not gonna come out in

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<v Speaker 3>front of the American people and Shay, we don't know

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<v Speaker 3>what the hell to do. But they're a clairvoyant. They

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<v Speaker 3>have to wait for the future like everybody else.

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<v Speaker 1>Uh.

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<v Speaker 3>The FED under Chairman Powell cut rates because they were

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<v Speaker 3>worried about the labor market.

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<v Speaker 1>Labor market's okay, it's.

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<v Speaker 3>Not great, but we had we're not adding a ton

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<v Speaker 3>of new jobs, but nobody's being laid out relatively laid

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<v Speaker 3>off relatively speaking. But we've got inflation and it's caused

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<v Speaker 3>about three things, and no particular Uh. Number one, all

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<v Speaker 3>this AI spending. They're spending billions of dollars. I hope

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<v Speaker 3>those guys know what they're doing, because they got to

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<v Speaker 3>pay the money back. Number two to unless their extent tariffs.

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<v Speaker 3>When when imports cost more, that contributes to inflation. But

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<v Speaker 3>number three, the energy costs. I mean, you don't you know,

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<v Speaker 3>you don't have to be on Stein's cousin to to

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<v Speaker 3>figure that out. And so they want to just watch

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<v Speaker 3>it and wait a little bit more. And that's what

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<v Speaker 3>I would have done, just wait and see it and

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<v Speaker 3>get a little bit more data. But let me say this, look,

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<v Speaker 3>inflation is pernicious. You cannot let it get out of control.

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<v Speaker 3>And I know the Fed supposedly has a dual role inflation,

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<v Speaker 3>price stability, and full employment, but its main role is inflation.

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<v Speaker 3>And they're going to have to if we don't get

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<v Speaker 3>control of it, they're going to have to raise rates.

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<v Speaker 3>Now I'm not saying that's going to make me happy,

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<v Speaker 3>but they can't let this inflation get out of control.

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<v Speaker 4>A lot of folks thought he would hike that the

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<v Speaker 4>FED would hike rates. Today, I can't imagine what the

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<v Speaker 4>market would have done in that world. Senator, what do

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<v Speaker 4>you make of the performance today? Could he have communicated

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<v Speaker 4>things differently? Because this market reaction is viscerally You've got

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<v Speaker 4>a thirty year at five point two percent. I'm kind

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<v Speaker 4>of scared to think of what's going to happen tomorrow morning.

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<v Speaker 3>Well, let me say it again, the people at the

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<v Speaker 3>FED are not clairvoyant. They have to wait on the

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<v Speaker 3>future like the rest of us.

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<v Speaker 1>Number two.

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<v Speaker 3>I don't want to overstate this, but sometimes the economists

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<v Speaker 3>that at the FED remind me of those late night

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<v Speaker 3>psychic hotlines.

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<v Speaker 1>Since you see on TV. I mean, they're about as

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<v Speaker 1>accurate because they just don't know.

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<v Speaker 3>But the Chairman can't come out today and say, hem

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<v Speaker 3>if I know, you know, we know inflation is a problem,

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<v Speaker 3>but we're not sure it's going to come down because

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<v Speaker 3>we're not sure about what's going to happen in Iran.

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<v Speaker 1>But that's the truth. That's what's going on.

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<v Speaker 2>Well, on the subject of Iran, Senator, as I'm sure

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<v Speaker 2>you well know, President Trump is threatening to retaliate against

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<v Speaker 2>Iran after what the US described as a surprise attempted

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<v Speaker 2>attack on US assets in Jordan. If we're responding to

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<v Speaker 2>Iranian attacks, as Sentcom said was the case in the

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<v Speaker 2>previous twelve days of strikes, we're just coming off of,

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<v Speaker 2>is the US really in control in this theater.

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<v Speaker 3>Very supportive of what President Trump has done in Iran.

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<v Speaker 3>I think it was something we had to do. That's

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<v Speaker 3>point one. Point two. There are limits to American air power.

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<v Speaker 3>I don't have the intelligence that the President has, so

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<v Speaker 3>I don't know about the additional strikes. But I think

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<v Speaker 3>the two most effective things we can do right now.

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<v Speaker 1>To get road to.

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<v Speaker 3>Control to behave is number one, the sanctions on a

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<v Speaker 3>sale of oil and number two that blockade. I think

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<v Speaker 3>we're just going to have to starve them out now.

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<v Speaker 3>That's going to be painful because energy prices could go

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<v Speaker 3>even higher, and nobody wants that. I don't want that,

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<v Speaker 3>but we we can't. Our credibilities at stake, and Iran

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<v Speaker 3>is dangerous and we have to do something about it.

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<v Speaker 3>I don't support putting true on the ground, and I'm

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<v Speaker 3>not convinced. But again, I don't have the information that

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<v Speaker 3>all these extra strikes are doing any good. But I

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<v Speaker 3>know one thing at Blockade. If you leave it on

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<v Speaker 3>long enough, Iron's going to have to start shutting down

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<v Speaker 3>its wells because it's got no place to put its oil.

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<v Speaker 3>And once Iran shuts down those old, old wells, they

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<v Speaker 3>may not be able to get them going again. And

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<v Speaker 3>I would if we can stay of the course a

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<v Speaker 3>few more months, I think Iron will be easier, not easy,

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<v Speaker 3>but easier to deal with. But you also have to

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<v Speaker 3>remember that you're dealing with the son of Sam or

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<v Speaker 3>Charles Mansk. These people are not just modeling insane.

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<v Speaker 4>Well, that's why you have the chorus of call them

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<v Speaker 4>iron hawks, who say that let's not play around at

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<v Speaker 4>the negotiating table. We need to finish the job militarily. Senator,

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<v Speaker 4>I know you're paying a little less than the national

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<v Speaker 4>average in Louisiana said three sixty eight according to Triple A.

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<v Speaker 4>But if there's a few more months of this, that

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<v Speaker 4>puts a smack dab right around election day, Right, what

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<v Speaker 4>does that mean for the midterms?

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<v Speaker 1>Well, it'll be painful as hell.

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<v Speaker 3>But number two, you can't you can't always look I'm mindful.

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<v Speaker 3>This place is political as hell. Politics is in the

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<v Speaker 3>blood of everybody here, kind of like herpes. Not me.

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<v Speaker 1>I mean, I think sometimes.

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<v Speaker 3>You've got to you gotta you've got to try to.

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<v Speaker 1>Do the right thing.

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<v Speaker 3>And I wish the President and his team could do

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<v Speaker 3>a little better job of messaging about why we're in

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<v Speaker 3>Iran and why we're staying the course. But he's the

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<v Speaker 3>president and I'm not well.

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<v Speaker 2>The President, of course, wants people around him that are

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<v Speaker 2>of his selection when it comes to his cabinet, and

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<v Speaker 2>he has told you and your colleagues on the Ishara

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<v Speaker 2>Commedian Committee in the United States Senate that he would

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<v Speaker 2>like Todd blanche to go from acting to the Attorney

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<v Speaker 2>General of the United States. To your knowledge, Senator, will

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<v Speaker 2>you be voting on his confirmation in the committee tomorrow?

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<v Speaker 2>What is the status?

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<v Speaker 3>Well, if I'm cold to vote, I'm going to vote yes,

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<v Speaker 3>and I'll be glad to explain why if you care

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<v Speaker 3>to hear it.

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<v Speaker 1>Do you expect too, I don't know if we're going

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<v Speaker 1>to have a vote.

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<v Speaker 3>John Cornyn has requested the paperwork to resolve this issue

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<v Speaker 3>of the Anti Weaponization Fund. John's a good senator.

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<v Speaker 1>I know him well.

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<v Speaker 3>He's he's a he's serious as an aneurysm about this.

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<v Speaker 1>He's not going to back down.

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<v Speaker 3>And if I were mister Blanche, I would give Corning

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<v Speaker 3>what he wants. If he doesn't, he's not going to

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<v Speaker 3>be confirmed. I'm not saying I agree with Senator Cornyn,

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<v Speaker 3>but I know Senator Cornyn and he's not backing down.

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<v Speaker 3>So that's where we all are. If I had to bet,

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<v Speaker 3>i'd say we're not voting.

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<v Speaker 4>Wow, well, this is quite a moment we're in, senator,

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<v Speaker 4>And I understand that when you're not in Washington, you're

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<v Speaker 4>a substitute teacher at McKinley Magnet Middle School teaching government

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<v Speaker 4>and civics to public school students. Talk to us like

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<v Speaker 4>your class for a moment.

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<v Speaker 1>Well is this going?

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<v Speaker 3>Well, Senator, I've been doing this for fifteen years, and

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<v Speaker 3>I substitute teach. I try to do it three times

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<v Speaker 3>a year. We need substitutes badly. They'll even take politicians.

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<v Speaker 3>You ought to try. You ought to do it, and

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<v Speaker 3>it'd be a real substante.

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<v Speaker 4>What's our civics lesson?

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<v Speaker 1>Professor?

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<v Speaker 4>How is the system working right now?

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<v Speaker 3>Well?

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<v Speaker 1>Every school's different, if you're lucky. No, I mean Washington.

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<v Speaker 4>I'm sorry, I mean Washington.

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<v Speaker 3>Well, I'm not going to tell the kids this, but

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<v Speaker 3>right now, as we're talking off the air, this place

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<v Speaker 3>is a total cock up. As they say in England,

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<v Speaker 3>it looks like the happy hour at an airport Chili's.

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<v Speaker 3>There is no plan right now. I say that gently,

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<v Speaker 3>but there is no plan. President wants one thing, a

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<v Speaker 3>majority leader, who I support, wants another. Only the majority

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<v Speaker 3>leader can put a bill on the floor. If it

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<v Speaker 3>were up to me, I do it differently. I would

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<v Speaker 3>put I mean, there's this mantra of we've got to

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<v Speaker 3>work it out with the Democrats and we've all got

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<v Speaker 3>to be happy. Look that's where that's where God made votes.

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<v Speaker 3>You're not gonna make everybody happy. And I'd vote on

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<v Speaker 3>the budget resolution. I'd call a vote on the Ron

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<v Speaker 3>sanctions bill the final vote. I'd vote on a clean

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<v Speaker 3>Sea R. If Senator Schumer wants to shut government down,

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<v Speaker 3>he can vote no on a clean Sea R. I

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<v Speaker 3>would vote Lafaiza renewal, I would have. I'd vote on

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<v Speaker 3>all of our pending business. And I'm prepare to stay

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<v Speaker 3>as long as we have to, if that means missing.

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<v Speaker 1>The August break, so be it. We all to get

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<v Speaker 1>our work done.

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<v Speaker 3>But for six months I've been in meeting after meeting

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<v Speaker 3>after meeting. That could have been an email to discuss

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<v Speaker 3>these bills and who's happy and who's sad? What are

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<v Speaker 3>my Democratic friends going to do? At some point, you

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<v Speaker 3>got to vote, and we're not doing nearly enough voting

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<v Speaker 3>and way too much talking. Well, in Louisiana, we'd say

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<v Speaker 3>we're doing a lot of a lot of chopping, but

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<v Speaker 3>no chips are flying.

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<v Speaker 4>Well, I'll tell you what, I'd love to meet you

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<v Speaker 4>in that classroom someday. I want to hear what you're

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<v Speaker 4>saying to the students. And I'm sure you'd love to

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<v Speaker 4>get back to Katahula as soon as.

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<v Speaker 3>These kids are great. These kids are great. We learned

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<v Speaker 3>something every time I do it.

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<v Speaker 1>Well, we're glad to have you, Senator.

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<v Speaker 4>We've been looking forward to this for longer than you know,

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<v Speaker 4>and I hope this won't be the last opportunity were again.

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<v Speaker 4>I'm Kennedy of Louisiana. Thank you for being with us

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<v Speaker 4>on Blueberg TV and radio. It's great pleasure.