1 00:00:00,800 --> 00:00:04,360 Speaker 1: You're listening to the Bloomberg Sound on podcast. Catch us 2 00:00:04,360 --> 00:00:07,560 Speaker 1: live weekdays at one Eastern on Bloomberg dot com, the 3 00:00:07,600 --> 00:00:10,600 Speaker 1: iHeart Radio app, and the Bloomberg Business app. We're listening 4 00:00:10,600 --> 00:00:14,800 Speaker 1: on demand wherever you get your podcasts. You normally wouldn't 5 00:00:14,920 --> 00:00:17,279 Speaker 1: be news or at least not like this, not a 6 00:00:17,360 --> 00:00:20,880 Speaker 1: front pager, but after last week in change will say 7 00:00:21,160 --> 00:00:24,000 Speaker 1: and appearance today by the Treasury Secretary before the American 8 00:00:24,160 --> 00:00:28,440 Speaker 1: Bankers Association is leading the day closely watched by all 9 00:00:28,480 --> 00:00:31,479 Speaker 1: of us. As Janet Yellen addresses the banking crisis in 10 00:00:31,560 --> 00:00:36,680 Speaker 1: a very carefully chosen set of work, Our intervention was 11 00:00:36,800 --> 00:00:42,200 Speaker 1: necessary to protect the broader US banking system, and similar 12 00:00:42,240 --> 00:00:48,800 Speaker 1: actions could be warranted if smaller institutions suffered deposit runs 13 00:00:49,400 --> 00:00:53,240 Speaker 1: to pose the risk of contagion, and she focused on 14 00:00:53,280 --> 00:00:56,360 Speaker 1: the importance of small to midsize banks as the argument 15 00:00:56,400 --> 00:00:59,280 Speaker 1: over FDIC insurance where to put the capture there be 16 00:00:59,320 --> 00:01:02,920 Speaker 1: a cap continue in Washington. These banks are heavily engaged 17 00:01:03,400 --> 00:01:08,920 Speaker 1: in traditional banking services to provide vital credit and financial 18 00:01:09,000 --> 00:01:14,960 Speaker 1: support to families and small businesses. They also increase competition 19 00:01:15,040 --> 00:01:19,800 Speaker 1: in the banking sector and often have specialized knowledge and 20 00:01:19,959 --> 00:01:24,240 Speaker 1: expertise in the communities they invest in. So don't forget 21 00:01:24,280 --> 00:01:27,600 Speaker 1: the little guys. Bloomberg News reporting Treasury Department staff now 22 00:01:27,640 --> 00:01:32,880 Speaker 1: busy studying ways to temporarily expand FDIC insurance coverage to 23 00:01:33,000 --> 00:01:37,480 Speaker 1: all deposits, even as the administration reminds us that Congress 24 00:01:38,040 --> 00:01:40,319 Speaker 1: would have to pass a law to make this permanent 25 00:01:40,319 --> 00:01:42,240 Speaker 1: to actually do this the right way, and of course 26 00:01:42,240 --> 00:01:46,200 Speaker 1: there's no consensus on that, not yet. Let's get into 27 00:01:46,240 --> 00:01:49,120 Speaker 1: it with Congressman Bryant Style, Republican from Wisconsin, serves on 28 00:01:49,120 --> 00:01:52,880 Speaker 1: the Financial Services Committee and shares the House Administration Committee, 29 00:01:53,280 --> 00:01:55,720 Speaker 1: both at the center of the storm here. Congressman, he's 30 00:01:55,800 --> 00:01:58,360 Speaker 1: joining us from the Republican retreat in Orlando, and it's 31 00:01:58,360 --> 00:02:01,440 Speaker 1: great to have you back. Rispond Styles. Is it time 32 00:02:01,680 --> 00:02:06,480 Speaker 1: to raise the cap or eliminate it on FDIC deposit insurance? 33 00:02:07,840 --> 00:02:10,160 Speaker 1: I think what we need to do is use next 34 00:02:10,160 --> 00:02:12,720 Speaker 1: week hearing to get the who, what, where, when, why 35 00:02:12,880 --> 00:02:16,760 Speaker 1: and how these bank failures occurred. Is that the fact 36 00:02:16,760 --> 00:02:20,560 Speaker 1: that we need adjustments in actual policy or were regulators 37 00:02:20,560 --> 00:02:24,600 Speaker 1: asleep at the switch? Did management understand what they were 38 00:02:24,600 --> 00:02:26,280 Speaker 1: doing with what was on their balance sheet? And the 39 00:02:26,320 --> 00:02:29,400 Speaker 1: mismatch with the rising interest rates, and so before we 40 00:02:29,560 --> 00:02:33,000 Speaker 1: jump to full policy conclusions and permanent changes in the 41 00:02:33,080 --> 00:02:37,120 Speaker 1: FDIC structure, I think it's really important that we dig 42 00:02:37,160 --> 00:02:39,359 Speaker 1: in and make sure we understand exactly why the banks 43 00:02:39,360 --> 00:02:42,040 Speaker 1: failed in the first place. Congress, when you've been around 44 00:02:42,080 --> 00:02:44,280 Speaker 1: Washington long enough to know that you're supposed to shoot 45 00:02:44,280 --> 00:02:46,040 Speaker 1: from the hip and not wait to find out what 46 00:02:46,120 --> 00:02:50,000 Speaker 1: happened first, right, Well, the irony is not lost on me, 47 00:02:50,080 --> 00:02:53,320 Speaker 1: But in this situation, we're dealing with restoring confidence in 48 00:02:53,360 --> 00:02:57,560 Speaker 1: the American banking system writ large, and the confidence underlying 49 00:02:57,600 --> 00:03:00,840 Speaker 1: the US banks is so important for the economic health 50 00:03:00,880 --> 00:03:03,639 Speaker 1: not only of the United States, but really of the globe. 51 00:03:03,720 --> 00:03:05,359 Speaker 1: And so I think what we want to do is 52 00:03:05,400 --> 00:03:08,880 Speaker 1: have a serious adult analysis of this and get the 53 00:03:08,960 --> 00:03:13,040 Speaker 1: policy right, not to rush to judgment. Is you kind 54 00:03:13,040 --> 00:03:16,360 Speaker 1: of jokingly say that Washington's often known from shooting from 55 00:03:16,400 --> 00:03:20,120 Speaker 1: the hip and putting forward policies at the political whims 56 00:03:20,440 --> 00:03:24,960 Speaker 1: rather than actually underlying because of the economic principles in place. 57 00:03:25,320 --> 00:03:28,840 Speaker 1: When we're dealing with significant bank regulations as we are 58 00:03:28,880 --> 00:03:31,880 Speaker 1: in this case, I think it's just absolutely imperative that 59 00:03:32,000 --> 00:03:33,760 Speaker 1: we get this right and we make sure that we 60 00:03:33,840 --> 00:03:36,160 Speaker 1: prevent future bank runs, but we do this with the 61 00:03:36,280 --> 00:03:39,720 Speaker 1: light of not actually putting tax dollars at risk. I 62 00:03:39,720 --> 00:03:42,160 Speaker 1: think we can do that, and there's passed forward. But 63 00:03:42,280 --> 00:03:45,680 Speaker 1: next week's hearing there's going to be step one, indeed 64 00:03:45,720 --> 00:03:48,160 Speaker 1: step one. In the meantime, Congressman, are you comfortable with 65 00:03:48,200 --> 00:03:50,760 Speaker 1: the Treasury taking around with some temporary solutions? Is that 66 00:03:50,840 --> 00:03:54,839 Speaker 1: healthy for the banking system? Well, you know, I don't 67 00:03:54,920 --> 00:03:57,400 Speaker 1: love what we've seen play out, But the question is 68 00:03:57,400 --> 00:03:59,640 Speaker 1: going to be is this the best? Is this the 69 00:03:59,680 --> 00:04:04,160 Speaker 1: best of bad choices presented to the Treasury and the 70 00:04:04,200 --> 00:04:07,480 Speaker 1: Federal Reserve? And so we're going to have an opportunity 71 00:04:07,520 --> 00:04:09,640 Speaker 1: to have a full look back, a full review of 72 00:04:09,720 --> 00:04:12,800 Speaker 1: exactly what played out. I think that's really appropriate for 73 00:04:12,880 --> 00:04:15,080 Speaker 1: us to do. At some point there was no good 74 00:04:15,120 --> 00:04:20,599 Speaker 1: solution for the Federal Reserve as SSBB began to began 75 00:04:20,640 --> 00:04:22,760 Speaker 1: to fall. The question is going to be is this 76 00:04:22,839 --> 00:04:25,640 Speaker 1: the best course of action? I'm always very hesitant for 77 00:04:25,640 --> 00:04:28,600 Speaker 1: the federal government to step in in place of the 78 00:04:28,640 --> 00:04:33,279 Speaker 1: markets reaching the solution themselves. Stocks are moving higher today. 79 00:04:33,480 --> 00:04:36,240 Speaker 1: Markets seem to be calming a bit. At least, we're 80 00:04:36,279 --> 00:04:42,520 Speaker 1: even seeing some nibbling in shares of banks of all sizes. Actually, Congressman, 81 00:04:42,520 --> 00:04:45,120 Speaker 1: are you feeling today now that we've got a couple 82 00:04:45,120 --> 00:04:47,080 Speaker 1: of days behind us. We got off the weekend, we 83 00:04:47,120 --> 00:04:49,480 Speaker 1: got through credit squeeze, We're still dealing, I realized with 84 00:04:49,600 --> 00:04:52,680 Speaker 1: First Republic. But are things feeling more stable? Do you 85 00:04:52,680 --> 00:04:54,520 Speaker 1: have more confidence than you did when we saw you 86 00:04:54,600 --> 00:04:58,240 Speaker 1: last week? I think, big picture, the markets appear to 87 00:04:58,279 --> 00:05:00,480 Speaker 1: be more stable. But I think the big challenger that 88 00:05:00,520 --> 00:05:03,159 Speaker 1: we're not having enough conversation about is the fact that 89 00:05:03,240 --> 00:05:07,240 Speaker 1: inflation remains stubbornly high and we're nowhere near the Fed's 90 00:05:07,279 --> 00:05:09,680 Speaker 1: target of two percent. And so why did these banks 91 00:05:09,920 --> 00:05:13,000 Speaker 1: in our financial system have the stress in the first place. 92 00:05:13,040 --> 00:05:15,520 Speaker 1: It's the reaction to the Federal Reserve. Well, the Federal 93 00:05:15,520 --> 00:05:18,359 Speaker 1: Reserve is simply raising rates to try to address the 94 00:05:18,400 --> 00:05:21,360 Speaker 1: inflationary pressures we're all feeling. This is where I think 95 00:05:21,400 --> 00:05:24,080 Speaker 1: it's a real opportunity for Congress to come to the 96 00:05:24,080 --> 00:05:28,080 Speaker 1: table and actually find fiscal solutions to the inflationary environment, 97 00:05:28,160 --> 00:05:31,880 Speaker 1: rather than simply relying on the real blunt force instrument 98 00:05:31,920 --> 00:05:34,240 Speaker 1: the Federal Reserve has, which is to raise interest rates. 99 00:05:34,279 --> 00:05:37,840 Speaker 1: Are you hoping they don't move rates tomorrow. Well, it 100 00:05:37,880 --> 00:05:40,640 Speaker 1: goes both ways. I think the real key here is 101 00:05:40,680 --> 00:05:43,760 Speaker 1: that the Federal Reserve makes it very clear that they're 102 00:05:43,760 --> 00:05:46,599 Speaker 1: going to remain consistent in their past to tame inflation. 103 00:05:47,000 --> 00:05:49,600 Speaker 1: And so if the Federal Reserve backs off, I'm concerned 104 00:05:49,600 --> 00:05:52,040 Speaker 1: that the market's going to view that is an indication 105 00:05:52,080 --> 00:05:55,240 Speaker 1: the Fed is not serious about taming inflation. We need 106 00:05:55,320 --> 00:05:59,320 Speaker 1: to have both the Fed and policymakers in Washington viewing 107 00:05:59,360 --> 00:06:03,159 Speaker 1: bringing down is job number one. So twenty five BIPs 108 00:06:03,160 --> 00:06:05,880 Speaker 1: and done is what I keep hearing. Congressman, are you 109 00:06:05,920 --> 00:06:09,599 Speaker 1: comfortable with that? Well, you know, I'll let the PhD 110 00:06:09,680 --> 00:06:11,760 Speaker 1: economists come out with what the numbers should be. I 111 00:06:11,839 --> 00:06:15,839 Speaker 1: think what's really what's really important is that we're showing 112 00:06:15,920 --> 00:06:20,080 Speaker 1: consistency on our goal to tackle inflation. Is the reason 113 00:06:20,080 --> 00:06:22,240 Speaker 1: I think the policymakers in Washington have to have to 114 00:06:22,240 --> 00:06:25,200 Speaker 1: stop reckless spending on leash American energy, get workers back 115 00:06:25,240 --> 00:06:28,800 Speaker 1: to work. The Federal Reserve has one instrument and is 116 00:06:28,960 --> 00:06:31,479 Speaker 1: interest rates, and so I don't think it's unreasonable for 117 00:06:31,480 --> 00:06:34,720 Speaker 1: the Federal Reserve to continue their march on interest rates 118 00:06:34,880 --> 00:06:37,680 Speaker 1: while Congress is failing to do its job to bring 119 00:06:37,680 --> 00:06:41,400 Speaker 1: inflation down I mentioned you're joining us from the Republican 120 00:06:41,440 --> 00:06:46,160 Speaker 1: House retreat in Orlando, where this has been very much 121 00:06:47,360 --> 00:06:49,640 Speaker 1: an issue in the air, along with the debt limit. 122 00:06:49,680 --> 00:06:52,440 Speaker 1: And I wonder, Congressman, if you can shed any light 123 00:06:52,480 --> 00:06:55,440 Speaker 1: on this idea that the banking crisis that we're going 124 00:06:55,480 --> 00:06:59,400 Speaker 1: through now and the potential, for instance, for using government 125 00:06:59,400 --> 00:07:04,120 Speaker 1: money to help backstop deposits might move the X date forward. 126 00:07:04,320 --> 00:07:06,960 Speaker 1: Is that something is that real? Is that something you're 127 00:07:06,960 --> 00:07:10,800 Speaker 1: worried about? The X state is really a calculation that 128 00:07:10,880 --> 00:07:14,000 Speaker 1: can only be provided by the Secretary of the Treasury. 129 00:07:14,080 --> 00:07:16,280 Speaker 1: So it's a little bit of a black box unless 130 00:07:16,280 --> 00:07:19,760 Speaker 1: the Secretary of the Treasury puts forward the formula that 131 00:07:19,800 --> 00:07:23,760 Speaker 1: she's actually utilizing right now under extraordinary measures and what 132 00:07:23,800 --> 00:07:25,640 Speaker 1: the cash flows are. But what I do think it 133 00:07:25,720 --> 00:07:29,720 Speaker 1: does is it really solidifies the understanding of how significant 134 00:07:29,800 --> 00:07:32,400 Speaker 1: this is to get right, to get our fiscal house 135 00:07:32,440 --> 00:07:34,920 Speaker 1: back in order, but to also make good on the 136 00:07:34,960 --> 00:07:37,040 Speaker 1: debts of the federal governments. And so we have to 137 00:07:37,080 --> 00:07:39,040 Speaker 1: do both. We've got to come to the table have 138 00:07:39,080 --> 00:07:41,600 Speaker 1: adult conversations about how we're going to get this country 139 00:07:41,960 --> 00:07:45,440 Speaker 1: back onto a path of fiscal stability. In time is 140 00:07:45,480 --> 00:07:47,720 Speaker 1: ticking I hope the President comes to table to have 141 00:07:47,760 --> 00:07:51,800 Speaker 1: these conversations with conservatives of the House fothersome style. I 142 00:07:51,800 --> 00:07:53,880 Speaker 1: have to ask you not just about your role on 143 00:07:53,960 --> 00:07:56,640 Speaker 1: financial services here, but you also chair, as I mentioned, 144 00:07:57,400 --> 00:08:03,680 Speaker 1: the Administration Committee, how administration, and you're looking to sit 145 00:08:03,760 --> 00:08:09,280 Speaker 1: down for a conversation with the Manhattan DA who purportedly 146 00:08:09,840 --> 00:08:12,040 Speaker 1: is about to indict Donald Trump. We don't seem to 147 00:08:12,040 --> 00:08:14,240 Speaker 1: know about that, but it's reported that you want him 148 00:08:14,280 --> 00:08:17,600 Speaker 1: to sit for a transcribed interview and in fact give 149 00:08:17,720 --> 00:08:22,040 Speaker 1: you provide you material from his investigation. Will that happen? Well, 150 00:08:22,400 --> 00:08:25,000 Speaker 1: we have put forward the request to the DA. My 151 00:08:25,080 --> 00:08:29,400 Speaker 1: Committee Committee on House Administration has oversight over federal election law, 152 00:08:29,440 --> 00:08:31,680 Speaker 1: and what we want to make sure is that our 153 00:08:31,760 --> 00:08:36,199 Speaker 1: judicial system is blind to partisan politics. And the indications 154 00:08:36,200 --> 00:08:38,719 Speaker 1: here is that maybe that is not the case at 155 00:08:38,760 --> 00:08:41,920 Speaker 1: the Manhattan DA's office. This is a case we got 156 00:08:41,920 --> 00:08:44,920 Speaker 1: to remember that was passed on by previous DA's, it 157 00:08:45,080 --> 00:08:48,120 Speaker 1: was passed on by the Department of Justice, and now 158 00:08:48,840 --> 00:08:53,199 Speaker 1: a partisan elected DA in Manhattan has kind of risen 159 00:08:53,240 --> 00:08:56,680 Speaker 1: the zombie case back up. I think there's appropriate questions 160 00:08:56,720 --> 00:08:59,719 Speaker 1: in a case that's this significant, is to why it's 161 00:08:59,760 --> 00:09:01,360 Speaker 1: moving forward in the way it is. I think the 162 00:09:01,360 --> 00:09:04,720 Speaker 1: American people deserve to know the answers we've asked in 163 00:09:04,760 --> 00:09:07,120 Speaker 1: our letter, and I think that is totally appropriate in 164 00:09:07,120 --> 00:09:10,680 Speaker 1: a case that is of a potential indictment of the 165 00:09:10,720 --> 00:09:13,079 Speaker 1: former president of the United States. Potential is a key 166 00:09:13,120 --> 00:09:15,720 Speaker 1: word there. I know Donald Trump truth that it was 167 00:09:16,080 --> 00:09:18,760 Speaker 1: he's going to be arrested today, but we actually there's 168 00:09:18,800 --> 00:09:21,880 Speaker 1: nothing official on this, right he may not be arrested 169 00:09:21,920 --> 00:09:25,840 Speaker 1: at all. Well, we do know the investigation is ongoing. 170 00:09:26,160 --> 00:09:30,040 Speaker 1: There is you know, there's no final decision that I 171 00:09:30,280 --> 00:09:32,960 Speaker 1: or anyone else has been made aware of. But I 172 00:09:33,000 --> 00:09:36,280 Speaker 1: do think the fact that the partisan investigation is on 173 00:09:36,440 --> 00:09:40,480 Speaker 1: going or potentially partisan investigation, I think is worthy of 174 00:09:40,520 --> 00:09:44,040 Speaker 1: the questions that we've asked, which is federal dollars being 175 00:09:44,120 --> 00:09:48,600 Speaker 1: utilized in this investigation? And is this investigation in coordination 176 00:09:48,760 --> 00:09:52,280 Speaker 1: with any other federal agencies to bother? You to see 177 00:09:52,320 --> 00:09:55,000 Speaker 1: politicians raising money on this, and Donald Trump is not 178 00:09:55,040 --> 00:09:59,400 Speaker 1: the only one, you know. I think that people sending 179 00:09:59,440 --> 00:10:01,880 Speaker 1: out emails and raising money is nothing new in the 180 00:10:01,880 --> 00:10:04,800 Speaker 1: world of politics. I think the real answer here is, 181 00:10:04,960 --> 00:10:07,880 Speaker 1: ultimately we got to get the policies right to make 182 00:10:07,880 --> 00:10:11,240 Speaker 1: sure that people feel confident in our judicial system, that 183 00:10:11,280 --> 00:10:14,200 Speaker 1: it is not partisan, but it's blind to politics, and 184 00:10:14,320 --> 00:10:16,680 Speaker 1: that ultimately everyone under the court of law has a 185 00:10:16,720 --> 00:10:21,720 Speaker 1: true fair shake. Congressman, to get back to the policy 186 00:10:23,040 --> 00:10:25,000 Speaker 1: that we started with here, I haven't asked you about 187 00:10:25,040 --> 00:10:27,640 Speaker 1: the budget, and I just wonder we mentioned the debt 188 00:10:27,640 --> 00:10:30,520 Speaker 1: ceiling quickly, when are we going to see negotiations get 189 00:10:30,559 --> 00:10:33,520 Speaker 1: under win real Republicans have their budget unveiled so we 190 00:10:33,520 --> 00:10:36,560 Speaker 1: can actually see negotiations between the House and the White House. 191 00:10:37,320 --> 00:10:40,319 Speaker 1: So as you recall, the President put forward his budget 192 00:10:40,360 --> 00:10:43,200 Speaker 1: over one month late. That was disappointing. So that came 193 00:10:43,240 --> 00:10:46,520 Speaker 1: in now just two weeks ago. Republicans, we're working on 194 00:10:46,640 --> 00:10:49,680 Speaker 1: putting our budget together. But I'd love to see the 195 00:10:49,679 --> 00:10:52,320 Speaker 1: President come to the table. In particulars it relates to 196 00:10:52,360 --> 00:10:55,040 Speaker 1: the debt ceiling, the debt ceiling pre date when the 197 00:10:55,120 --> 00:10:58,319 Speaker 1: spending bills will come forward, the dead ceilings, the opportunity 198 00:10:58,559 --> 00:11:01,439 Speaker 1: to have a conversation on the law term fiscal stability 199 00:11:01,760 --> 00:11:04,440 Speaker 1: of the United States. Over eight times in the last 200 00:11:04,520 --> 00:11:08,760 Speaker 1: forty years, we've seen substantive and meaningful reforms, often in 201 00:11:08,800 --> 00:11:12,439 Speaker 1: a bipartisan manner, to bring this country from the brink 202 00:11:12,840 --> 00:11:15,240 Speaker 1: towards the past to the stability. I'd love to see 203 00:11:15,280 --> 00:11:17,400 Speaker 1: the President come and take us up on the opportunity 204 00:11:17,400 --> 00:11:20,319 Speaker 1: to have adult conversations about how we get ourselves back 205 00:11:20,360 --> 00:11:24,040 Speaker 1: on track. Do you those with all that said, actually 206 00:11:24,080 --> 00:11:26,400 Speaker 1: see a world in which there are twelve appropriations bills 207 00:11:26,400 --> 00:11:28,199 Speaker 1: have become a budget at the end of this year. 208 00:11:29,320 --> 00:11:31,760 Speaker 1: I'd love to see us return to regular order that 209 00:11:31,840 --> 00:11:34,839 Speaker 1: hasn't been done in a number of years. I don't 210 00:11:34,880 --> 00:11:37,160 Speaker 1: want to say that I'm overly confident that we're going 211 00:11:37,200 --> 00:11:39,800 Speaker 1: to have a moment of kumbay Yah on the House 212 00:11:39,840 --> 00:11:42,760 Speaker 1: and Senate floor this fall, but I do think it's 213 00:11:42,760 --> 00:11:45,560 Speaker 1: imperative that we work towards the goal of getting this 214 00:11:45,960 --> 00:11:49,040 Speaker 1: getting our Congress operational and back in order. I know, 215 00:11:49,080 --> 00:11:52,040 Speaker 1: you have to catch a plane, Congressman, so our time 216 00:11:52,120 --> 00:11:54,000 Speaker 1: is tight here. You didn't go to Disney, right, nobody's 217 00:11:54,000 --> 00:11:56,800 Speaker 1: allowed to go to Disney on this trip. I literally 218 00:11:56,800 --> 00:12:01,880 Speaker 1: spent about seven minutes outside of of hotel ballrooms over 219 00:12:01,920 --> 00:12:04,240 Speaker 1: the course of the last two days. I'm actually going 220 00:12:04,280 --> 00:12:06,360 Speaker 1: to jump my flight to DC. Let me tell you, 221 00:12:06,360 --> 00:12:07,760 Speaker 1: I'm going to be looking forward to getting home to 222 00:12:07,760 --> 00:12:10,679 Speaker 1: Wisconsin by the weekend. We'll be here when you get 223 00:12:10,679 --> 00:12:13,240 Speaker 1: back to the capital. Congressman, thank you for joining. Brian Style, 224 00:12:14,200 --> 00:12:17,160 Speaker 1: Wisconsin's first district, got a couple of important roles here, 225 00:12:17,160 --> 00:12:18,680 Speaker 1: as you just heard. It's not just he's on the 226 00:12:18,679 --> 00:12:21,760 Speaker 1: Financial Services Committey, but he also shares that very important 227 00:12:21,800 --> 00:12:24,360 Speaker 1: House Administration committee which may not be a household name, 228 00:12:24,400 --> 00:12:28,240 Speaker 1: but it is going to potentially bring the DA from 229 00:12:28,240 --> 00:12:32,360 Speaker 1: Manhattan to Washington, and that will be a moment if 230 00:12:32,400 --> 00:12:35,600 Speaker 1: it happens. We assembled our panel now on Bloomberg sound On. 231 00:12:35,720 --> 00:12:39,200 Speaker 1: Rick Davis is with US Republican strategist of course, Bloomberg 232 00:12:39,280 --> 00:12:43,200 Speaker 1: Politics contributor, joined today by Joel Rubin, the president of 233 00:12:43,200 --> 00:12:46,199 Speaker 1: the Washington Strategy Group, former Deputy Assistant Secretary of States, 234 00:12:46,200 --> 00:12:48,760 Speaker 1: served in the Obama and Bush administrations. Great to have 235 00:12:49,559 --> 00:12:52,440 Speaker 1: both of you here. Rick will start with the matter 236 00:12:52,520 --> 00:12:55,600 Speaker 1: at hand. Janet Yellen today this is at least issue 237 00:12:55,679 --> 00:12:59,760 Speaker 1: number one before the American Bankers Association. This would normally 238 00:12:59,800 --> 00:13:02,720 Speaker 1: be kind of a thumbsucker, as we say in the business, 239 00:13:02,760 --> 00:13:05,040 Speaker 1: but you know the potential to move markets. She was 240 00:13:05,120 --> 00:13:09,640 Speaker 1: reading off notes, even answering questions on just to underscore 241 00:13:09,679 --> 00:13:11,960 Speaker 1: how important this moment is and how careful she needs 242 00:13:12,000 --> 00:13:14,400 Speaker 1: to be. How did she do Look, she answered the 243 00:13:14,400 --> 00:13:16,760 Speaker 1: one question we've been all asking, you know, since this 244 00:13:17,120 --> 00:13:20,520 Speaker 1: first takedown of SVB, and that is are we stabilized? 245 00:13:20,880 --> 00:13:24,079 Speaker 1: Is this a contagion situation? Or are we moving beyond it? 246 00:13:24,120 --> 00:13:25,600 Speaker 1: And I thought she was very clear today. I think 247 00:13:25,640 --> 00:13:28,600 Speaker 1: that was the confidence that she brought to the speech 248 00:13:28,600 --> 00:13:31,720 Speaker 1: at Aba, was to say, you know, the system is stable, 249 00:13:31,800 --> 00:13:34,000 Speaker 1: we're gon, We're gonna do everything we can to protect it. 250 00:13:34,040 --> 00:13:37,120 Speaker 1: There are still some issues like First Republic banging around 251 00:13:37,120 --> 00:13:38,720 Speaker 1: out there, but we're going to take care of that too. 252 00:13:38,800 --> 00:13:41,760 Speaker 1: So I gotta tell you, anybody who listen to that 253 00:13:41,800 --> 00:13:44,440 Speaker 1: speech had to be encouraged that not only has the 254 00:13:44,480 --> 00:13:48,320 Speaker 1: government's actions today been pretty aggressive and quick, but that 255 00:13:48,360 --> 00:13:50,960 Speaker 1: they're going to do the same thing going forward. Joel, 256 00:13:51,040 --> 00:13:53,600 Speaker 1: is this the posture that the administration should be taking 257 00:13:53,600 --> 00:13:55,120 Speaker 1: on this matter? Do they need to be doing or 258 00:13:55,160 --> 00:14:00,199 Speaker 1: saying more? Yeah? Joe, Look, I agree with you, Rick, 259 00:14:00,240 --> 00:14:02,439 Speaker 1: I mean, this is the right posture. It's a very 260 00:14:02,440 --> 00:14:06,880 Speaker 1: sensitive moment, but you can clearly hear that there are 261 00:14:06,880 --> 00:14:11,200 Speaker 1: going to be days after as well, and reforms proposed 262 00:14:11,760 --> 00:14:15,680 Speaker 1: ideas to sort of roll back the failed reforms done 263 00:14:15,720 --> 00:14:19,600 Speaker 1: to Dodd Frank back in twenty eighteen, and certainly internal 264 00:14:19,600 --> 00:14:23,120 Speaker 1: management questions that the FED and its oversight its effectiveness 265 00:14:23,200 --> 00:14:26,160 Speaker 1: need to be answered as well. But for now, stability 266 00:14:26,280 --> 00:14:30,560 Speaker 1: is the key, ensuring that there's no panic, no runs, 267 00:14:30,680 --> 00:14:35,120 Speaker 1: that the holes are being plugged at the moment. But yeah, 268 00:14:35,200 --> 00:14:37,560 Speaker 1: there's a lot of a lot of discontent with how 269 00:14:37,560 --> 00:14:40,240 Speaker 1: this went down, that's for sure. We're going to talk 270 00:14:40,240 --> 00:14:42,880 Speaker 1: more about it with Joel and Rick Davis our panel 271 00:14:42,920 --> 00:14:46,320 Speaker 1: today on the Fastest Show in Politics. Stay with us. 272 00:14:46,360 --> 00:14:47,960 Speaker 1: We have a lot more ahead as we also need 273 00:14:48,000 --> 00:14:50,560 Speaker 1: to tackle this Trump issue a little bit more. Hey, 274 00:14:50,800 --> 00:14:53,480 Speaker 1: guess what no arrest today is any of this real? 275 00:14:54,200 --> 00:14:59,080 Speaker 1: The fundraising is? This is Bloomberg. You're listening to the 276 00:14:59,080 --> 00:15:03,240 Speaker 1: Bloomberg Sound on podcast. Catch the program live weekdays at 277 00:15:03,280 --> 00:15:06,800 Speaker 1: one Eastern on Bloomberg Radio, the tune in app, Bloomberg 278 00:15:06,840 --> 00:15:09,680 Speaker 1: dot Com, and the Bloomberg Business App. You can also 279 00:15:09,720 --> 00:15:12,920 Speaker 1: listen live on Amazon Alexa from our flagship New York 280 00:15:12,960 --> 00:15:17,880 Speaker 1: station Just Say Alexa playing Bloomberg eleven thirty. Hey, it's 281 00:15:17,880 --> 00:15:19,880 Speaker 1: the fastest show in politics. It goes by so fast 282 00:15:19,920 --> 00:15:22,360 Speaker 1: sometimes you don't realize the minutes. I'm Joe Matthew and Washington. 283 00:15:22,480 --> 00:15:24,640 Speaker 1: This is sound on as we reassembled our panel. Rick 284 00:15:24,720 --> 00:15:28,680 Speaker 1: Davis is in New York, Bloomberg Politics contributor Republican Strategists, 285 00:15:28,640 --> 00:15:32,440 Speaker 1: along with Democratic analyst Joel Rubin, president of Washington's Strategy Group. 286 00:15:32,960 --> 00:15:34,360 Speaker 1: Great to have both of you with us here. I 287 00:15:34,400 --> 00:15:38,000 Speaker 1: want to get to the matter of Donald Trump. Kevin 288 00:15:38,080 --> 00:15:41,000 Speaker 1: McCarthy talking about this issue as we were at one 289 00:15:41,040 --> 00:15:43,520 Speaker 1: point at least anticipating in arrest. Today it looks like 290 00:15:43,560 --> 00:15:45,880 Speaker 1: that's not going to happen. The Speaker of the House 291 00:15:45,920 --> 00:15:50,480 Speaker 1: asked about this matter, about the story of paying hush 292 00:15:50,480 --> 00:15:53,080 Speaker 1: money to a porn star at the Republican House retreat 293 00:15:53,080 --> 00:15:54,720 Speaker 1: in Orlando. We live in America and it should be 294 00:15:54,760 --> 00:15:59,600 Speaker 1: equal justice. This was personal money as one to try 295 00:15:59,600 --> 00:16:02,240 Speaker 1: to hide this seven years ago statue of limitation. And 296 00:16:02,320 --> 00:16:04,160 Speaker 1: I think in your heart of hearts, you know too 297 00:16:04,400 --> 00:16:06,520 Speaker 1: that you think this is just political and I think 298 00:16:06,520 --> 00:16:08,000 Speaker 1: that's what the rest of the country thinks. And we're 299 00:16:08,080 --> 00:16:10,760 Speaker 1: kind of tired of that. Rick Davis, is that the 300 00:16:10,800 --> 00:16:13,040 Speaker 1: best line for the Speaker to be using right now? 301 00:16:13,080 --> 00:16:17,400 Speaker 1: He invoked Hillary Clinton in his answer as well. The 302 00:16:17,520 --> 00:16:21,040 Speaker 1: ideas I guess, okay, it's as long as your personal 303 00:16:21,040 --> 00:16:24,560 Speaker 1: business if you're paying off porn stars. But the legal 304 00:16:24,560 --> 00:16:26,920 Speaker 1: side of this is a problem. Yeah, Joe, I think 305 00:16:26,920 --> 00:16:29,400 Speaker 1: we live in the day and age where everything is 306 00:16:29,600 --> 00:16:32,000 Speaker 1: open to suggestion, right, I mean, like anything you want 307 00:16:32,000 --> 00:16:34,520 Speaker 1: to criticize, you can criticize. I would say I would 308 00:16:34,560 --> 00:16:38,640 Speaker 1: be a lot happier if the speaker would start everything 309 00:16:38,800 --> 00:16:42,760 Speaker 1: he says about this topic with no person is above 310 00:16:42,800 --> 00:16:45,080 Speaker 1: the law, right, I mean, like that's where we want 311 00:16:45,080 --> 00:16:48,440 Speaker 1: to wind up, right, the idea, just to set the baseline. 312 00:16:48,520 --> 00:16:51,160 Speaker 1: Then whatever you say after that actually is just your 313 00:16:51,160 --> 00:16:54,160 Speaker 1: opinion about this case and what you think is going on. 314 00:16:54,240 --> 00:16:57,520 Speaker 1: And clearly this wasn't what he wanted to be talking 315 00:16:57,560 --> 00:16:59,720 Speaker 1: about this week. He wanted to be talking about as 316 00:16:59,760 --> 00:17:01,960 Speaker 1: at in the House. They spent a lot of time 317 00:17:01,960 --> 00:17:04,480 Speaker 1: and money moving all these guys Republican Caucus down to 318 00:17:04,600 --> 00:17:08,159 Speaker 1: Orlando to do this retreat, and he really thought this 319 00:17:08,280 --> 00:17:12,000 Speaker 1: was his chance to define his speakership. Not so. I mean, 320 00:17:12,080 --> 00:17:15,440 Speaker 1: the one guy that decided this was all going to 321 00:17:15,520 --> 00:17:19,199 Speaker 1: happen on Tuesday wasn't the prosecutor in New York. It 322 00:17:19,280 --> 00:17:21,199 Speaker 1: was Donald Trump who jumped the gun and said, Hey, 323 00:17:21,240 --> 00:17:23,200 Speaker 1: I'm going to be arrested and let's raise some money. 324 00:17:23,280 --> 00:17:26,320 Speaker 1: So you know, we have only ourselves to blame as 325 00:17:26,359 --> 00:17:29,439 Speaker 1: a party for the lack of clarity on this issue. 326 00:17:29,560 --> 00:17:34,280 Speaker 1: And it's unfortunate that that speaker McCarthy couldn't get done 327 00:17:34,280 --> 00:17:36,840 Speaker 1: this week what he wanted to get done. Joel, how 328 00:17:36,840 --> 00:17:39,560 Speaker 1: about this. Republicans are raising money on this, beginning with 329 00:17:39,600 --> 00:17:42,359 Speaker 1: Donald Trump. We've seen several others were actually working on 330 00:17:42,400 --> 00:17:44,200 Speaker 1: a great story on this. The amount of the sheer 331 00:17:44,240 --> 00:17:48,160 Speaker 1: amount of fundraising that has come from barricades going up 332 00:17:48,640 --> 00:17:52,280 Speaker 1: in front of the courthouse in New York. What if 333 00:17:52,280 --> 00:17:57,880 Speaker 1: there is no arrest here, that's possible too, hey, Joe, 334 00:17:57,960 --> 00:18:01,600 Speaker 1: I mean, well, hey, we're a spirit of forgiveness right now, right. 335 00:18:01,600 --> 00:18:04,560 Speaker 1: I mean, Kevin McCarthy clearly believes that Donald Trump should 336 00:18:04,560 --> 00:18:08,400 Speaker 1: be forgiven for his peccadillos in the past. And I'd 337 00:18:08,400 --> 00:18:12,439 Speaker 1: love to associate myself with Ronda Santis's comment yesterday about 338 00:18:12,520 --> 00:18:14,960 Speaker 1: how he doesn't quite know much about what it means 339 00:18:15,000 --> 00:18:18,800 Speaker 1: to pay off porn stars is in order to as 340 00:18:18,880 --> 00:18:21,800 Speaker 1: hush money. You know. Look, I mean they should they 341 00:18:21,800 --> 00:18:24,440 Speaker 1: should pardon Hunter Biden as well. All of this is 342 00:18:24,480 --> 00:18:27,280 Speaker 1: becoming a circus and I think to penetrate into some 343 00:18:27,320 --> 00:18:30,080 Speaker 1: of the substance of what Kevin McCarthy said, there's something 344 00:18:30,200 --> 00:18:34,600 Speaker 1: very disconcerting. He made an argument and Jim Jordan did 345 00:18:34,640 --> 00:18:37,800 Speaker 1: this as well in writing that essentially, if one is 346 00:18:37,840 --> 00:18:42,240 Speaker 1: a candidate for president, they should not be subject to prosecution. 347 00:18:42,760 --> 00:18:46,680 Speaker 1: A real sort of authoritarian power grab kind of mindset there. 348 00:18:46,880 --> 00:18:50,680 Speaker 1: I guess that means if I want to commit a crime, 349 00:18:50,720 --> 00:18:52,760 Speaker 1: I better run for president first, and then I can 350 00:18:52,920 --> 00:18:56,280 Speaker 1: commit that crime and I'll be safe. Right. So there's 351 00:18:56,840 --> 00:19:00,159 Speaker 1: this is the part that Democrats get nervous about, is 352 00:19:00,200 --> 00:19:03,920 Speaker 1: this idea that somehow Donald Trump gets to be treated 353 00:19:03,960 --> 00:19:06,520 Speaker 1: above the law. And I think, to Rick's good point, 354 00:19:07,280 --> 00:19:09,840 Speaker 1: that should be the first thing that someone says, nobody 355 00:19:09,880 --> 00:19:12,200 Speaker 1: is above the law. The DA in New York was 356 00:19:12,280 --> 00:19:15,640 Speaker 1: duly elected. Doesn't matter what political party he's from. He 357 00:19:15,720 --> 00:19:17,920 Speaker 1: was elected. He's doing his job. He has the right 358 00:19:17,960 --> 00:19:22,000 Speaker 1: to prosecute and that's what he may or may not do. 359 00:19:22,160 --> 00:19:26,200 Speaker 1: So I think Kevin McCarthy really is playing footloose and 360 00:19:26,280 --> 00:19:28,320 Speaker 1: fancy with the rule of law in this country. Well, 361 00:19:28,320 --> 00:19:31,000 Speaker 1: we heard from Congressman Brian Style a short time ago. Rick. 362 00:19:31,080 --> 00:19:33,760 Speaker 1: He is one of three House Committee chairs looking to 363 00:19:33,880 --> 00:19:39,640 Speaker 1: bring DA Bragg Alvin Bragg to Washington, DC for an 364 00:19:39,640 --> 00:19:43,960 Speaker 1: interview for testimony, and they also want materials from his investigation, 365 00:19:44,080 --> 00:19:50,040 Speaker 1: materials from an ongoing criminal probe. Is that the next 366 00:19:50,080 --> 00:19:52,600 Speaker 1: move here, you know, it could be their move here. 367 00:19:53,200 --> 00:19:57,040 Speaker 1: You know, certainly Congressman styles chairman of the Administration committee 368 00:19:57,080 --> 00:20:01,280 Speaker 1: that oversees federal campaign activity, certainly has the right to 369 00:20:01,320 --> 00:20:07,360 Speaker 1: ask there is separation of powers issues relevant to Congress 370 00:20:07,400 --> 00:20:12,920 Speaker 1: and the state and local and federal uh legal entities 371 00:20:12,960 --> 00:20:16,199 Speaker 1: like the Justice Department. But uh, look, I think everything 372 00:20:16,240 --> 00:20:18,399 Speaker 1: is fair game here, right until at which point in 373 00:20:18,480 --> 00:20:22,760 Speaker 1: time the DA does something. It's point, Joe, he hasn't 374 00:20:22,760 --> 00:20:25,800 Speaker 1: done anything yet, and all this could be really embarrassing 375 00:20:25,840 --> 00:20:27,440 Speaker 1: to all of us to have spent this much time 376 00:20:27,520 --> 00:20:30,679 Speaker 1: talking about this if nothing happens. But he's kind of 377 00:20:30,840 --> 00:20:32,639 Speaker 1: darned if he does, and darned if he doesn't. You know, 378 00:20:32,680 --> 00:20:34,800 Speaker 1: if he doesn't bring a case and it turns out 379 00:20:34,840 --> 00:20:37,640 Speaker 1: that there's been you know, wrongdoing, then he gets criticized 380 00:20:37,640 --> 00:20:40,639 Speaker 1: for you know, letting somebody walk. If he does this, 381 00:20:40,760 --> 00:20:43,359 Speaker 1: he's going to get criticized as he is now, you know, 382 00:20:43,400 --> 00:20:46,320 Speaker 1: for politicizing it. So there's there's no good out here 383 00:20:47,080 --> 00:20:50,560 Speaker 1: for for for Alvin Bragg, and so he's just gonna 384 00:20:50,600 --> 00:20:53,040 Speaker 1: have to do whatever his job requires him to do. 385 00:20:52,960 --> 00:20:57,960 Speaker 1: Do you think we'll see him testifying Washington Jewel, I 386 00:20:58,080 --> 00:21:00,040 Speaker 1: love it. I think he'd be great. I think he 387 00:21:00,119 --> 00:21:03,560 Speaker 1: would make arguments that would frankly, put the House Republican 388 00:21:03,640 --> 00:21:07,040 Speaker 1: Caucus in a very defensive position defending Donald Trump. And 389 00:21:07,560 --> 00:21:11,520 Speaker 1: you could hear the replay reeling again and again about 390 00:21:11,800 --> 00:21:15,959 Speaker 1: hush money to quiet porn stars with whom he's had 391 00:21:16,000 --> 00:21:19,240 Speaker 1: an affair a thousand times in the congressional hearing. I 392 00:21:19,359 --> 00:21:22,080 Speaker 1: doubt they want to go down that road. It's got 393 00:21:22,080 --> 00:21:24,680 Speaker 1: to point there, Rick, you bring Alvin Bragg up there, 394 00:21:24,720 --> 00:21:27,000 Speaker 1: you want to talk about materials from his case. None 395 00:21:27,040 --> 00:21:30,240 Speaker 1: of them are going to help the former president, are they. 396 00:21:30,280 --> 00:21:33,600 Speaker 1: Every day we're talking about porn stars and hush money 397 00:21:33,640 --> 00:21:36,520 Speaker 1: from Donald Trump is a bad day for anybody who's 398 00:21:36,600 --> 00:21:39,560 Speaker 1: running as a Republican in this election cycle. So I 399 00:21:39,600 --> 00:21:40,920 Speaker 1: think they're all going to have to take it to 400 00:21:40,960 --> 00:21:46,480 Speaker 1: the breath and think what's really good for us. Buyer Beware, fire, Beware, Wow. 401 00:21:46,960 --> 00:21:51,000 Speaker 1: So all the while we don't have budget negotiations underway, 402 00:21:51,560 --> 00:21:55,200 Speaker 1: there's I guess nobody talking at least well, they're talking 403 00:21:55,240 --> 00:21:58,359 Speaker 1: at each other over the debt limit. We're dealing with 404 00:21:58,400 --> 00:22:02,400 Speaker 1: a banking crisis here. When we actually see some progress 405 00:22:02,400 --> 00:22:05,080 Speaker 1: in this Republican led House, Rick when it comes to 406 00:22:05,119 --> 00:22:07,760 Speaker 1: a budget. Every time I ask a lawmaker like Brian Style, 407 00:22:07,760 --> 00:22:10,439 Speaker 1: and he's great about talking about this stuff. He's actually 408 00:22:10,560 --> 00:22:13,080 Speaker 1: very forthcoming. But I tend to hear about how Joe 409 00:22:13,080 --> 00:22:16,920 Speaker 1: Biden was late with his budget. Yeah. Absolutely, it's nice 410 00:22:16,960 --> 00:22:20,320 Speaker 1: to hear Chairman Styles talk about going back to regular order. 411 00:22:20,600 --> 00:22:23,680 Speaker 1: But not one of the Appropriations Committee has started a 412 00:22:23,760 --> 00:22:26,480 Speaker 1: mark up on a budget yet. So when exactly is 413 00:22:26,480 --> 00:22:28,080 Speaker 1: that going to happen. You've got a lot of people 414 00:22:28,080 --> 00:22:30,680 Speaker 1: in the queue to get something done. Look, I think 415 00:22:30,720 --> 00:22:33,840 Speaker 1: you know President Biden sort of called everybody's cars, presented 416 00:22:33,880 --> 00:22:35,679 Speaker 1: his budget as he was supposed to. Sure, you can 417 00:22:35,720 --> 00:22:38,280 Speaker 1: complain it was a month late, but like, where's the 418 00:22:38,320 --> 00:22:42,719 Speaker 1: Republican budget? I think it would be very smart for 419 00:22:42,960 --> 00:22:45,399 Speaker 1: the Speaker to put out a Republican budget with the 420 00:22:45,480 --> 00:22:47,960 Speaker 1: kinds of things that Republicans believe in. I mean, you 421 00:22:48,080 --> 00:22:51,840 Speaker 1: heard Congressman Styles very articulate about what we think the 422 00:22:51,880 --> 00:22:54,320 Speaker 1: priorities are, well, let's put put it on the table 423 00:22:54,359 --> 00:22:57,240 Speaker 1: and debate our budget, you know, and just ignore Joe 424 00:22:57,240 --> 00:22:59,479 Speaker 1: Biden's budget because it's not going to get pass And 425 00:22:59,480 --> 00:23:01,800 Speaker 1: if you leave that these cuts are necessary, then you 426 00:23:01,800 --> 00:23:04,119 Speaker 1: should be taking them to the hoop. And I just 427 00:23:04,760 --> 00:23:08,760 Speaker 1: a little March Madness reference there, And so I think 428 00:23:08,880 --> 00:23:11,000 Speaker 1: let's let's get the ball and let's go down to 429 00:23:11,040 --> 00:23:15,840 Speaker 1: score three. How does Joe Biden handle this? Joel, you 430 00:23:15,960 --> 00:23:18,600 Speaker 1: heard a congressman style say, hey, look he was a 431 00:23:18,680 --> 00:23:21,439 Speaker 1: month later. We got to finish ours. Now, got to 432 00:23:21,440 --> 00:23:23,880 Speaker 1: deal with the debt limit before we even talk about 433 00:23:24,440 --> 00:23:26,879 Speaker 1: anything else here. Of course, the president doesn't want to 434 00:23:26,880 --> 00:23:30,120 Speaker 1: talk about budgetary reform. He wants a clean debt limit bill. 435 00:23:30,240 --> 00:23:34,880 Speaker 1: This standoff really could go to the brink. Oh yeah, 436 00:23:34,960 --> 00:23:37,240 Speaker 1: I mean, and you know, Joe, this is supposed to 437 00:23:37,280 --> 00:23:39,560 Speaker 1: be the easy year of governing because next year is 438 00:23:39,600 --> 00:23:42,080 Speaker 1: when we have the election season, right, I mean, we're 439 00:23:42,119 --> 00:23:45,960 Speaker 1: already in it. And it's not as if the debt 440 00:23:45,960 --> 00:23:50,200 Speaker 1: limit hasn't been discussed for many months before before even 441 00:23:50,280 --> 00:23:53,200 Speaker 1: the President's budge was submitted. So those are all really 442 00:23:53,480 --> 00:23:57,600 Speaker 1: just complaints without real merit. I think that we're going 443 00:23:57,640 --> 00:23:59,680 Speaker 1: to see this go to the brink. And the problem 444 00:23:59,720 --> 00:24:02,320 Speaker 1: that we're Publicans have is that they've painted themselves into 445 00:24:02,320 --> 00:24:05,800 Speaker 1: a quarter right now about these cuts because they want 446 00:24:05,840 --> 00:24:08,040 Speaker 1: major cuts, but what they wanted to cut in Social 447 00:24:08,119 --> 00:24:10,720 Speaker 1: Security Medicare they now don't want to cut because it's 448 00:24:10,760 --> 00:24:14,760 Speaker 1: too politically difficult and President Trump said he would never 449 00:24:14,800 --> 00:24:17,560 Speaker 1: do it, and so they're stuck with an increased defense. 450 00:24:18,000 --> 00:24:19,480 Speaker 1: Where do they want to go. They want to go 451 00:24:19,600 --> 00:24:26,360 Speaker 1: basically against all domestic spending, which is preposterous concept, impossible 452 00:24:26,400 --> 00:24:29,800 Speaker 1: to implement. And so I think the Republicans are completely 453 00:24:31,200 --> 00:24:36,720 Speaker 1: disheveled and have no clarity, no coherence, and frankly, that's 454 00:24:36,840 --> 00:24:42,160 Speaker 1: very dangerous for getting final deals done, where basically Kevin 455 00:24:42,200 --> 00:24:45,840 Speaker 1: McCarthy's not going to get anything through without major Democratic support, 456 00:24:46,160 --> 00:24:49,320 Speaker 1: and that's where it has to head. Otherwise we're gonna 457 00:24:49,520 --> 00:24:54,520 Speaker 1: end up in a shutdown, creasing default, cruising for a 458 00:24:54,600 --> 00:24:57,320 Speaker 1: downgrade here, Joel, thank you for the insights. Joel Rubin, 459 00:24:57,359 --> 00:24:59,879 Speaker 1: president of the Washington Strategy Group, former Deputy Assistant s 460 00:25:00,040 --> 00:25:04,880 Speaker 1: Material State, along with Rick Davis, Bloomberg Politics contributor. You're 461 00:25:04,920 --> 00:25:08,560 Speaker 1: listening to The Bloomberg Sound On podcast. Catch the program 462 00:25:08,640 --> 00:25:12,240 Speaker 1: live weekdays at one Eastern on Bloomberg Radio, the tune 463 00:25:12,320 --> 00:25:15,320 Speaker 1: in alf, Bloomberg dot Com, and the Bloomberg Business App. 464 00:25:15,520 --> 00:25:18,359 Speaker 1: You can also listen live on Amazon Alexa from our 465 00:25:18,359 --> 00:25:24,159 Speaker 1: flagship New York station, Just Say Alexa playing Bloomberg eleven thirty. 466 00:25:33,720 --> 00:25:36,320 Speaker 1: It's got to be the best headline I've seen today. 467 00:25:36,400 --> 00:25:42,640 Speaker 1: Courtesy Joshua Green. Trump's stormy weather could be de Santis sunshirt. Yeah, 468 00:25:42,680 --> 00:25:47,880 Speaker 1: we're talking about the whole Stormy Daniel's case again. Well, 469 00:25:47,920 --> 00:25:52,000 Speaker 1: you know, Ronda Santis is watching all this from Florida. 470 00:25:52,960 --> 00:25:55,000 Speaker 1: He's been weighing in on this as well, as we 471 00:25:55,160 --> 00:25:58,240 Speaker 1: let you know yesterday. Kind of caught in the middle here. 472 00:25:58,280 --> 00:26:01,280 Speaker 1: Maybe play on both sides, if you will. Rond assented. 473 00:26:01,400 --> 00:26:04,119 Speaker 1: I don't know what goes into paying hush money to 474 00:26:04,200 --> 00:26:07,800 Speaker 1: a porn star to secure silence over some type of 475 00:26:07,840 --> 00:26:11,320 Speaker 1: alleged affair. I just I can't speak to that. But 476 00:26:11,680 --> 00:26:14,800 Speaker 1: what I can speak to is that if you have 477 00:26:14,920 --> 00:26:20,879 Speaker 1: a prosecutor who is ignoring crimes happening every single day 478 00:26:21,320 --> 00:26:24,520 Speaker 1: in his jurisdiction and he chooses to go back many 479 00:26:24,520 --> 00:26:29,760 Speaker 1: many years ago to try to use something about porn 480 00:26:29,880 --> 00:26:32,080 Speaker 1: star hush money, there it is again. You know, that's 481 00:26:32,119 --> 00:26:36,160 Speaker 1: an example of pursuing a political agenda. Two birds, one 482 00:26:36,240 --> 00:26:39,600 Speaker 1: stone go after Trump and the DA Is it possible? 483 00:26:39,640 --> 00:26:44,000 Speaker 1: He tried yesterday, and Joshua Green's writing about it. National 484 00:26:44,040 --> 00:26:47,040 Speaker 1: correspondent at Bloomberg Business Week, the author of Devil's Bargain, 485 00:26:47,119 --> 00:26:49,840 Speaker 1: Steve Benn and Donald Trump and the Storming of the Presidency. 486 00:26:50,280 --> 00:26:54,280 Speaker 1: We've got us another stormy situation here, josh. It's great 487 00:26:54,320 --> 00:26:57,119 Speaker 1: to have you back on Bloomberg Sound On. Rick Davis 488 00:26:57,680 --> 00:27:01,600 Speaker 1: is in New York. I have to admit, Josh, I'm 489 00:27:01,600 --> 00:27:04,280 Speaker 1: wondering what happens if there is no arrest, because that's 490 00:27:04,400 --> 00:27:07,720 Speaker 1: entirely possible. But is Rhonda Santis able to take this 491 00:27:07,760 --> 00:27:11,240 Speaker 1: ball and run with it? Well? I think De Santus 492 00:27:11,359 --> 00:27:14,199 Speaker 1: is in a tough position. I mean, obviously, Trump, if 493 00:27:14,200 --> 00:27:16,080 Speaker 1: he does get indicted, is going to be in a 494 00:27:16,080 --> 00:27:19,280 Speaker 1: tough position. But I think De Santus is too, because 495 00:27:19,280 --> 00:27:23,359 Speaker 1: he's spent the last year carefully walking a tight rope 496 00:27:23,400 --> 00:27:28,160 Speaker 1: between trying to appeal the Trump supporters and trying to 497 00:27:28,200 --> 00:27:31,520 Speaker 1: carve out his own distinct political identity that he hopes 498 00:27:31,640 --> 00:27:35,600 Speaker 1: makes him popular enough to win the Republican nomination in 499 00:27:35,640 --> 00:27:40,320 Speaker 1: twenty twenty four. He's done that by basically ignoring Trump. 500 00:27:40,760 --> 00:27:43,800 Speaker 1: But because of this expected indictment, or at least what 501 00:27:43,840 --> 00:27:46,880 Speaker 1: Trump expects to be an indictment, I think it's forcing 502 00:27:47,040 --> 00:27:49,600 Speaker 1: De Santis to have to take sides in a way 503 00:27:49,640 --> 00:27:52,320 Speaker 1: that he very much seems to be avoiding, as we 504 00:27:52,359 --> 00:27:54,760 Speaker 1: could hear in those two political clips where on the 505 00:27:54,800 --> 00:27:57,920 Speaker 1: one hand De Santus is saying porn star, porn star, 506 00:27:58,040 --> 00:28:01,199 Speaker 1: porn star, hoping to damn a Trump. But on the 507 00:28:01,200 --> 00:28:05,600 Speaker 1: other hand he's kind of cowtowing to Trump's defense that, 508 00:28:05,800 --> 00:28:08,280 Speaker 1: or at least his preferred line of defense that oh, 509 00:28:08,359 --> 00:28:11,840 Speaker 1: this is just you know, big government, Soros funded prosecutors, 510 00:28:12,240 --> 00:28:14,840 Speaker 1: and none of this stuff is fair. You know, in 511 00:28:14,880 --> 00:28:16,080 Speaker 1: the end, he's not gonna be able to have it 512 00:28:16,160 --> 00:28:19,040 Speaker 1: both ways, and he's probably gonna have to choose a side. 513 00:28:20,160 --> 00:28:22,720 Speaker 1: Interesting I like where you write that you actually you 514 00:28:22,880 --> 00:28:26,199 Speaker 1: thought that this is something that would have to be 515 00:28:26,240 --> 00:28:28,760 Speaker 1: played out on a debate stage, but Donald Trump appears 516 00:28:28,760 --> 00:28:31,840 Speaker 1: to have chosen the occasion of his potential indictment here 517 00:28:31,840 --> 00:28:34,840 Speaker 1: to force the issue a lot sooner. Are you suggesting 518 00:28:34,880 --> 00:28:36,800 Speaker 1: that Trump was trying to draw him out or this 519 00:28:36,880 --> 00:28:40,160 Speaker 1: is Ronda Santis rising to be part of the story, 520 00:28:40,880 --> 00:28:43,959 Speaker 1: no very much Trump drawing him out. You know, I 521 00:28:44,000 --> 00:28:47,120 Speaker 1: did a long Bloomberg Business Week cover profile of Ron 522 00:28:47,200 --> 00:28:49,320 Speaker 1: De Santis. I went down and traveled with him for 523 00:28:49,360 --> 00:28:51,480 Speaker 1: a couple of weeks when he was running for reelection 524 00:28:51,560 --> 00:28:56,000 Speaker 1: last fall, and one of the things I wrote about 525 00:28:56,080 --> 00:28:58,080 Speaker 1: was his strategy for kind of carving at his own 526 00:28:58,080 --> 00:29:01,200 Speaker 1: distinct political identity. In the way he did that was 527 00:29:01,280 --> 00:29:05,480 Speaker 1: to start these big Trumpian culture fights, whether it's over 528 00:29:06,000 --> 00:29:10,800 Speaker 1: you know, Disney or woke politics or shipping migrants to 529 00:29:11,240 --> 00:29:14,200 Speaker 1: Martha's vineyard as he did. You know, he's tried to 530 00:29:14,240 --> 00:29:17,400 Speaker 1: sort of strike this Trump like figure without ever mentioning 531 00:29:17,840 --> 00:29:19,880 Speaker 1: or getting tangled up with Donald Trump. And what I 532 00:29:19,920 --> 00:29:22,400 Speaker 1: said at the end of the piece was, so far, 533 00:29:22,520 --> 00:29:24,600 Speaker 1: this has been a great strategy for De Santas. He 534 00:29:24,640 --> 00:29:28,480 Speaker 1: has emerged as the clear alternative to Trump in the 535 00:29:28,560 --> 00:29:33,200 Speaker 1: Republican presidential primary polling. But at some point, you know, 536 00:29:33,280 --> 00:29:35,520 Speaker 1: he's going to have to battle the dragon. And I 537 00:29:35,560 --> 00:29:39,200 Speaker 1: thought that that point would come in six months when 538 00:29:39,280 --> 00:29:42,080 Speaker 1: he gets into the race and Republicans have their first 539 00:29:42,080 --> 00:29:44,880 Speaker 1: debate and to Santus is standing up there next to Trump, 540 00:29:44,880 --> 00:29:48,120 Speaker 1: and finally has to confront him. I think Trump has decided, no, 541 00:29:48,200 --> 00:29:50,320 Speaker 1: we're going to have this fight sooner and after De 542 00:29:50,440 --> 00:29:54,680 Speaker 1: Santus put out those statements yesterday, Trump's campaign blasted him 543 00:29:54,840 --> 00:30:01,280 Speaker 1: for basically being showing insufficient fealty to Trump and basically 544 00:30:01,320 --> 00:30:04,440 Speaker 1: not acting like a subordinate or a courtier the way 545 00:30:04,560 --> 00:30:07,440 Speaker 1: so many other Republicans have in kind of racing to 546 00:30:07,560 --> 00:30:10,880 Speaker 1: defend Trump in what does in the end boiled down 547 00:30:10,960 --> 00:30:14,760 Speaker 1: to an alleged scandal with a porn star. So it's 548 00:30:14,760 --> 00:30:18,320 Speaker 1: hardly a matter of national security. It's a great piece. 549 00:30:18,320 --> 00:30:20,480 Speaker 1: I'll point everybody to a Trump's stormy weather could be 550 00:30:20,480 --> 00:30:24,400 Speaker 1: De santis sunshine, Josh, thank you, Josh Green Bloomberg National 551 00:30:24,520 --> 00:30:29,000 Speaker 1: correspondent Rick Davis is with us still in New York. Rick, 552 00:30:29,040 --> 00:30:33,080 Speaker 1: how does Rhonda Santis continue to move down the field 553 00:30:33,120 --> 00:30:35,520 Speaker 1: on this? I think you were, actually you were impressed 554 00:30:35,560 --> 00:30:39,200 Speaker 1: by his agility yesterday to kind of get both messages 555 00:30:39,240 --> 00:30:42,040 Speaker 1: out there, cover him by cover himself by hitting the 556 00:30:42,120 --> 00:30:44,880 Speaker 1: DA but also pointing out, you know, again and again 557 00:30:44,960 --> 00:30:48,160 Speaker 1: that this is hush money for a porn star. What's 558 00:30:48,200 --> 00:30:50,440 Speaker 1: the next chapter for him? Well, I think there's no 559 00:30:50,520 --> 00:30:52,720 Speaker 1: going back now. I mean, you know, as Josh points 560 00:30:52,720 --> 00:30:56,160 Speaker 1: out in his piece, De Santis has really tried to 561 00:30:56,200 --> 00:31:00,440 Speaker 1: avoid this direct engagement, even while Trump is like blast him, 562 00:31:00,840 --> 00:31:03,239 Speaker 1: you know on true social about like, oh, you had 563 00:31:03,360 --> 00:31:07,120 Speaker 1: inappropriate relationships with you know, underaged women, maybe even a 564 00:31:07,160 --> 00:31:10,680 Speaker 1: transgender I mean, like, you can't not ignore that, right, 565 00:31:10,800 --> 00:31:13,200 Speaker 1: you can't ignore that. So at some point, and I 566 00:31:13,240 --> 00:31:15,640 Speaker 1: think it happened yesterday, he kind of came out of 567 00:31:15,640 --> 00:31:18,200 Speaker 1: his shell and decided to push back a bit. But 568 00:31:18,280 --> 00:31:20,400 Speaker 1: there's no such thing as a subtle pushback. You can't 569 00:31:20,440 --> 00:31:23,160 Speaker 1: be sarcastic with Trump, because he's like a He's like 570 00:31:23,200 --> 00:31:26,440 Speaker 1: a hurricane that just flies right over you. And and 571 00:31:26,600 --> 00:31:28,560 Speaker 1: you better be prepared to, you know, try to stop 572 00:31:28,600 --> 00:31:31,360 Speaker 1: that hurricane somehow. And and I don't think he has 573 00:31:31,400 --> 00:31:34,120 Speaker 1: the luxury now of waiting till the legislature gets out 574 00:31:34,200 --> 00:31:37,160 Speaker 1: and waiting until he makes an announcement. He is full 575 00:31:37,240 --> 00:31:39,240 Speaker 1: on in the game. Donald Trump will not give him 576 00:31:39,280 --> 00:31:43,479 Speaker 1: a day of comfort in this election cycle until at 577 00:31:43,480 --> 00:31:46,200 Speaker 1: which point he says I'm no longer running for president. 578 00:31:46,240 --> 00:31:49,479 Speaker 1: And that's when Trump will pick up and move on 579 00:31:49,520 --> 00:31:52,440 Speaker 1: to the next pretender. And so I think it's a 580 00:31:52,440 --> 00:31:56,080 Speaker 1: strategic mistake in the sense that he's he's he's rushed it, 581 00:31:56,920 --> 00:31:58,800 Speaker 1: and I think Donald Trump is more than happy to 582 00:31:58,800 --> 00:32:01,280 Speaker 1: litigate this with him all day long. Yeah, a lot 583 00:32:01,280 --> 00:32:03,280 Speaker 1: of people have pointed out Rick, and I'm sure you've 584 00:32:03,280 --> 00:32:06,000 Speaker 1: seen on social media that Ronda Santis has lost a 585 00:32:06,040 --> 00:32:10,320 Speaker 1: bit of weight. That tells you something, right, you know, wait, 586 00:32:10,400 --> 00:32:13,880 Speaker 1: politically or weight physically, because he both. Look. I mean, 587 00:32:13,880 --> 00:32:18,320 Speaker 1: he had this magnificent win. He you know, really historic 588 00:32:18,440 --> 00:32:21,360 Speaker 1: for Republicans in Florida to do as well as he did, 589 00:32:21,480 --> 00:32:23,880 Speaker 1: and and everybody's talking about, well, this is the future. 590 00:32:23,960 --> 00:32:26,280 Speaker 1: If we can win states turned you know, Florida red, 591 00:32:26,960 --> 00:32:29,880 Speaker 1: we can win in almost anywhere. And so he came 592 00:32:29,880 --> 00:32:32,320 Speaker 1: out of this election cycle really really in good shape. 593 00:32:32,320 --> 00:32:34,360 Speaker 1: And Trump the opposite, right, you know, a lot of 594 00:32:34,400 --> 00:32:37,520 Speaker 1: his candidates lost and he was taking his lumps for that. 595 00:32:37,640 --> 00:32:40,360 Speaker 1: And now the tables have kind of flipped, I mean, 596 00:32:40,680 --> 00:32:44,280 Speaker 1: because he's delayed any announcement, because he's you know, been 597 00:32:44,360 --> 00:32:47,760 Speaker 1: kind of demure in talking about Trump. He's been a 598 00:32:47,760 --> 00:32:50,400 Speaker 1: little bit of a target. I'm not exactly sure what 599 00:32:50,480 --> 00:32:54,320 Speaker 1: he's getting for it. Wow, the sanctimonious I guess the 600 00:32:54,360 --> 00:32:56,600 Speaker 1: meatball ron won't stick. If he's gonna lose a bunch 601 00:32:56,640 --> 00:32:59,960 Speaker 1: of weight, Rick. Thank you. Rick Davis, Bluebird Politics contribute 602 00:33:00,440 --> 00:33:03,560 Speaker 1: Republican Strategist with us here on sound On. Thanks for 603 00:33:03,600 --> 00:33:06,080 Speaker 1: listening to the sound On podcast. Make sure to subscribe 604 00:33:06,080 --> 00:33:09,240 Speaker 1: if you haven't already, Apples, Spotify, anywhere else you get 605 00:33:09,280 --> 00:33:13,040 Speaker 1: the podcast. You can find us live every weekday from Washington, 606 00:33:13,120 --> 00:33:20,400 Speaker 1: DC at one d at Eastern time, Bloomberg dot com