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Speaker 2: Terminal and the Bloomberg Business app. Stock sliding as investors
Speaker 2: comed down to the start of earning season, Keith Lerner
Speaker 2: of truest Right in the following the current bullmarket likely
Speaker 2: still has further upside, underscoring the importance of staying focused
Speaker 2: on the broader trajectory rather than short term turbulence. Keith
Speaker 2: joins us now for more. Keith, Welcome to the program.
Speaker 2: Are you expecting some short term turbulence this earning season?
Speaker 3: Yeah?
Speaker 4: Well, first, great to be with you. I think it
Speaker 4: may be a little bit of a spookier October.
Speaker 3: We didn't get the seasonal weakness.
Speaker 4: A lot a lot of folks were looking for in
Speaker 4: August and September, and as you just discussed, like we
Speaker 4: have this big meeting, it's at the end of the month,
Speaker 4: the Fed's meetings at the end of the month.
Speaker 3: I think earnings continue to be the north star.
Speaker 4: But I will say heading into the earning season and
Speaker 4: we've had just one of the strongest six month rallies
Speaker 4: we've seen in history, expectations are somewhat high. You did
Speaker 4: see some complacency put the call ratios were really low
Speaker 4: going into this as well. And as I look at
Speaker 4: the overall market, you're just see in some minor cracks.
Speaker 4: So I just think this month is going to be
Speaker 4: a bit more turbulence. We still think we're in a
Speaker 4: bull market, a bull market that deserves the benefit of
Speaker 4: the doubt, but I think this turbulence is likely to
Speaker 4: continue through this month.
Speaker 2: Keith Imbory and Lisa, we're talking about the tension between
Speaker 2: the US and China somehow failing somewhat different going into
Speaker 2: negotiations at the end of this month, and I think
Speaker 2: you can see that in the price section. Yesterday's bound
Speaker 2: smaller than Friday sell off, and the sell off resumes
Speaker 2: again this morning. Keith, is there something different about things
Speaker 2: this time around.
Speaker 4: Well, the biggest challenge from a market perspective is this
Speaker 4: that you're going into this with higher expectations.
Speaker 3: You're at a twenty two multiple.
Speaker 4: As I mentioned, you've had this big run, so you
Speaker 4: just have you're more vulnerable to bad news. Whether this
Speaker 4: actually from a political side is different, you know, we
Speaker 4: just don't know yet. I mean, that's just the reality.
Speaker 3: We don't know.
Speaker 4: I think what we've seen over the last you know,
Speaker 4: six months, is that when we start to have more
Speaker 4: tension in the markets, eventually, you know, coolerheads prevail. But
Speaker 4: as as just mentioned, we just made new highs in
Speaker 4: the market, So the question becomes, you know, how much
Speaker 4: how much of a move down do we need before
Speaker 4: we start to see kind of a backup. And we're
Speaker 4: only a few percent from all time high, so I
Speaker 4: suspect that we actually still have some more work to
Speaker 4: move on the downside before investors start to focus back
Speaker 4: on what we think is the north store of this
Speaker 4: blow market, which is still earning.
Speaker 5: So, Keith, this isn't a biable dip yet for you?
Speaker 3: Is that correct?
Speaker 4: This is not a place where I wouldn't say I
Speaker 4: would be aggressively buying here.
Speaker 6: No.
Speaker 4: I think you know, if we look back historically, we
Speaker 4: haven't had even a five percent pullback since April.
Speaker 3: You know.
Speaker 4: That's also we often talk about pullbacks or the admission
Speaker 4: price to the to the to the market to eventually
Speaker 4: higher prices. So you know, we're a few percent from
Speaker 4: an all time highs with these kind of a little
Speaker 4: bit of a craft. I like a little bit deeper
Speaker 4: of a pullback. And I'm not saying, you know, fifteen percent.
Speaker 4: I think something in the five to ten percent range
Speaker 4: would be something where we would say, potentially be more aggressive.
Speaker 5: I wonder what your read through is going to be
Speaker 5: from the bank earnings that do kick off shortly. We
Speaker 5: are expecting based on what Jeffreys reported a while ago,
Speaker 5: this boom and m and A, this idea that there's
Speaker 5: more corporate confidence we're seeing that surveys. Does that do
Speaker 5: enough to alleviate concerns elsewhere and make you have conviction
Speaker 5: to buy in a more broad based manner?
Speaker 3: Yeah, well, I do think that's important.
Speaker 4: I think, you know, we're all looking at whatever economic
Speaker 4: data that we have, and there's certainly some divertencies between
Speaker 4: like say Atlanta GDP, which is well above three percent
Speaker 4: and the softening in the labor market, And it's really
Speaker 4: about what are the banks seeing, What are we seeing
Speaker 4: on credit, what are we seeing on lended on lending,
Speaker 4: you know, and I'll view, we're we're seeing it's still
Speaker 4: this kind of two speed economy where the high end
Speaker 4: is doing well and there's more challenges, especially at the
Speaker 4: lower end. So I want to see if that continues.
Speaker 4: We did get you know, Delta last week, which was
Speaker 4: encouraging talking about, you know, an upgrade to their view
Speaker 4: based on the high end consumer. So I suspect that continues.
Speaker 4: But I think it is important And to be frank,
Speaker 4: we're not selling here. We're sticking with the underlying trend.
Speaker 4: But for us to add more to risk at this point,
Speaker 4: we would prefer at least a little bit of a
Speaker 4: further pullback or more of a consolidation in time where
Speaker 4: you kind of chop around and kind of reduce these expectations.
Speaker 4: This morning, they'd be of a fund survey came out
Speaker 4: and we saw that sentiment or allocations or the highest
Speaker 4: since February of this year. That was prior to the
Speaker 4: setback which was exacerbated by the terriff and certanty.
Speaker 1: Keith, when you're looking for catalysts to look at what
Speaker 1: actually be a pullback in the market to then buy more.
Speaker 1: Is it going to be this month as the tensions
Speaker 1: ratchet up between Washington and Beijing.
Speaker 4: Yeah, I think I think it could be. And the
Speaker 4: other thing I've been looking for, Listen, I expect to
Speaker 4: have a good earning season. You know, one thing, as
Speaker 4: I mentioned, the north star of this bull market has
Speaker 4: been earnings. So I'll be really interested to see how
Speaker 4: stocks react to good earnings. Your last quarter, we went
Speaker 4: into the earning season and expectations were really low.
Speaker 3: There's a lot of us certainty around terrace.
Speaker 4: What's interesting about heading into this earning season is analysts
Speaker 4: have been raising their estimates into the earning season.
Speaker 3: That's highly unusual.
Speaker 4: Last time we saw that was in for the Q
Speaker 4: four twenty twenty one. So that just also means we
Speaker 4: have higher expectations and then it also comes down all.
Speaker 3: You know, later on.
Speaker 4: We'll come down to tech. Tech's the big part of this.
Speaker 4: Markeer Wistol bullsh on tech. Longer term, we still think
Speaker 4: the dominant theme is tech. But you know, I want
Speaker 4: to see how stocks react to good news because I
Speaker 4: certainly think we'll have a decent earning season of all.
Speaker 2: So, Keith, we have seen these pockets are credit stress.
Speaker 2: I think we should explore it as well. First Brands, trick
Speaker 2: a Law, Tricolor. Have we decided which one is Brando
Speaker 2: Tricolor Tricolor.
Speaker 3: If you go south of the border. I think that
Speaker 3: that's end.
Speaker 2: Thank you, that's great, So, Keith, we've seeing those pockets
Speaker 2: are credit stress, whatever Lisa said, and First Brands as well. Keith,
Speaker 2: do you think that's a private market issue and the
Speaker 2: public markets are insulcted from what's happening there, particularly financial institutions.
Speaker 2: How are you in the team thinking about that situation.
Speaker 4: For the most part, we do think it's idiosyncratic, but
Speaker 4: we have to keep an open mind. We have seen
Speaker 4: credit spreads over the last week and week or so
Speaker 4: really kind of rise for the first time in a while.
Speaker 4: We all know that credit spreads of you know, at
Speaker 4: the lowest in some areas since the nineties, and you know, Friday,
Speaker 4: in our view as a portfolio manager, was a good
Speaker 4: stress test for us to see, you know, does diversifications
Speaker 4: still work? I mean, you know, we've got some questions
Speaker 4: for people why don't I own only tech or why
Speaker 4: don't I only you know, why don't own any bonds?
Speaker 4: And what we saw, especially on Friday is a good stress.
Speaker 4: As we show high quality bonds do well outperform, we
Speaker 4: show gold outperform, and then we show crypto actually underperformed.
Speaker 4: So basic diversification works.
Speaker 3: Again.
Speaker 4: I am paying attention to the credit marks. We have
Speaker 4: seen spreads move up, not even an alarming way, but
Speaker 4: something we should at least, you know, at least pay
Speaker 4: attention to.
Speaker 5: Keith, you mentioned the Bank of America Fund Manager survey,
Speaker 5: and in that survey, it showed that fifty seven percent
Speaker 5: of all respondents thought that private credit private equity is
Speaker 5: the latest source or the greatest source of any kind
Speaker 5: of systemic risk or systemic credit event in the near future.
Speaker 5: That is the most conviction that we've seen in terms
Speaker 5: of a potential catalyst going back to twenty twenty two.
Speaker 2: Do you agree with that?
Speaker 5: Is that where you're looking for potential catalysts for some
Speaker 5: sort of disruption.
Speaker 4: Well, a lot of times the issues in in the
Speaker 4: overle equity market begin with the credit market.
Speaker 3: So is that the most concerning thing? You know?
Speaker 4: I don't know, as I think about more of the
Speaker 4: public markets. You know, we have a lot of companies
Speaker 4: that have term you know, term dead, they have big
Speaker 4: you know, cash balances, Earnings have been relatively positive. So
Speaker 4: I don't know that we have like, you know, a
Speaker 4: big credit event unfolding here. But we all do know
Speaker 4: that there's been a huge amount of money into these
Speaker 4: private markets. They're more more opaque, and I think that's
Speaker 4: that's something that could kind of creep up more on
Speaker 4: investors because.
Speaker 3: It's just like, you know, we have less information there.
Speaker 3: I think about, we have less information.
Speaker 4: On the overall economy right now with without you know,
Speaker 4: some of these you know, these economic reports, government reports.
Speaker 4: So in the in the private credit markets, you just
Speaker 4: have less information. So when things, you know, start to
Speaker 4: unravel a little bit, you have less information to understand
Speaker 4: more broadly what's happening. But again, as I think about
Speaker 4: more of the public markets, it's not something that at
Speaker 4: this point, you know, we really see the systemic issue.
Speaker 2: Stay with us, multiple IMPERG survanance coming up after this.
Speaker 2: John Cassidy of MBC Capital Markets Bank with us for
Speaker 2: a final word on things. So today we've heard from
Speaker 2: JP Morgan, Goldman City welst fago tomorrow. Morgan Stanley and
Speaker 2: Bank of America. What have we learned this morning and
Speaker 2: how does that inform your view of what we can
Speaker 2: expect tomorrow, John, I.
Speaker 7: Think what we should expect tomorrow is the fact that
Speaker 7: the trading results from Morgan stillly in Bank America are
Speaker 7: will likely mirror what you saw today from the big banks,
Speaker 7: which were very good. You know, the FICK numbers in
Speaker 7: particular year of the year were strong, and we anticipate
Speaker 7: that we'll see that for the others. Also, the investment
Speaker 7: banking results, as you pointed out already earlier in the show,
Speaker 7: we're also strong and we should expect that as well
Speaker 7: from Bank America and Morgan Silly and finally on Bank
Speaker 7: America since they've got a real deep dive into the consumer.
Speaker 7: The consumer numbers we've seen today, whether it's JP, Morgan
Speaker 7: City or Wells Fargo, all who were resilient, and we
Speaker 7: would expect Bank America's numbers to be resilient in any
Speaker 7: are as well.
Speaker 5: And on the call that John was mentioning JP Morgan
Speaker 5: call the CFO of that bank saying that he's not
Speaker 5: really seeing any cracks in the credit market aside from
Speaker 5: a couple of vidiosyncratic areas, and says that for investment banking,
Speaker 5: all drivers are pretty much in place. I do wonder, though,
Speaker 5: that what we heard from the Wells Fargo on their
Speaker 5: call is that middle market clients are still cautious on borrowing.
Speaker 5: How much to expect the success to be mirrored in
Speaker 5: smaller and mid size banks that are going to report
Speaker 5: that might be more leveraged to those middle market clients.
Speaker 7: It's going to be interesting, Lisa, because certainly Wells has
Speaker 7: got a good read on the middle market of the
Speaker 7: US is predominantly a US bank, and the regional banks, though,
Speaker 7: could also benefit from the fact that the capital expenditures
Speaker 7: that we're anticipating due to the big beautiful bill that
Speaker 7: was passed in July, with the depreciation of one hundred
Speaker 7: percent of those capital expenditures in year one, could drive
Speaker 7: commercial and industrial loan demand. It's interesting to know JP
Speaker 7: Morgan's long growth year of the year was seven percent.
Speaker 7: Wells was much lower, closer to two percent. So I
Speaker 7: think what you're going to see is that Wells is
Speaker 7: still coming out of that asset half.
Speaker 3: It's going to take time.
Speaker 7: They have indicated that and so I think the read
Speaker 7: to the regionals is still positive based upon what we
Speaker 7: saw from JP Morgan's long growth.
Speaker 5: Gerard, I know that you probably don't want to pick
Speaker 5: favorites or winners, but so far it is early. Who
Speaker 5: do you think is winning the earning season right now?
Speaker 3: Of the four that came out?
Speaker 7: Obviously, JP Morgan's numbers were very strong across the board,
Speaker 7: so you probably have to put them up at the
Speaker 7: top of the leaderboard. City's numbers were also very good.
Speaker 7: They had a higher tax rate, which on the bottom
Speaker 7: line basis impacted EPs, so he probably put them up second.
Speaker 7: And then you know the other two Goldman and Wells
Speaker 7: are tied for third. You know, there's gold, silver, and
Speaker 7: bronze for everybody.
Speaker 2: Stay on the Federal Reserve, Joe Davis a Vanguard Rights
Speaker 2: the follow up, We expect the Fed to ease once
Speaker 2: more in twenty five, with October that meeting being slightly
Speaker 2: more likely to join us now for more Joe, welcome
Speaker 2: to the program. What makes October more likely given we
Speaker 2: are lights on economic takes at the moment.
Speaker 6: Well, I think it's just the slowdown we've seen in
Speaker 6: the labor market. Clearly there's a number of forces at work.
Speaker 6: We've seen some supply come down materially over the course
Speaker 6: of this year, but the fact is demand and businesses
Speaker 6: have held back on hiring too, and so for that reason,
Speaker 6: you know, our assessment over for over two years is
Speaker 6: the Federal Reserve has been restrictive, perhaps not as restrictive
Speaker 6: as something, and so this is really getting them to
Speaker 6: that elusive neutral rate, which no one knows what it is,
Speaker 6: but I think their approaching where it should be.
Speaker 2: Jomike McKee talked about it, the amount of division on
Speaker 2: the Federal Reserve. I assume you believe there is a
Speaker 2: consensus on how to move forward. I'm struggling to identify
Speaker 2: that consensus given the amount of different views I see
Speaker 2: in the FED speed What do you see?
Speaker 6: Well, I think this is actually somewhat typical of the
Speaker 6: various fastest the ecomomy you could look at when you're
Speaker 6: actually close to let's call it appropriate. I mean, you
Speaker 6: have a GDP numbers that would at the margin say
Speaker 6: you shouldn't be easy at all. The inflation would point
Speaker 6: to that as well. But then you've got the labor
Speaker 6: market that would suggest that you've got to take a
Speaker 6: little risk management in these policy So I think with
Speaker 6: that depend upon how policymakers wait those various data feeds. Again,
Speaker 6: we're going to have a lack of visibility here. I
Speaker 6: think that's actually par for the course where we're at now.
Speaker 5: I just wonder how much they are prioritizing the labor
Speaker 5: market if they cut rates by another fifty basis points.
Speaker 5: I mean, what is the direct read through to actually
Speaker 5: supporting the labor market.
Speaker 6: Well, I think that's the key issue. And actually the
Speaker 6: gap between where GDP is and where the jobs market
Speaker 6: is I think is the key issue for the next
Speaker 6: six or twelve months, because there's the gap close because
Speaker 6: protivity is starting the rise, and we'll start to see
Speaker 6: then a stabilization and perhaps the modest firming in the
Speaker 6: labor market.
Speaker 3: That's case A.
Speaker 6: Case B though, is that the labor market is simply
Speaker 6: of weaker growth ahead and then GDP would come down.
Speaker 6: That's a more recessionary impulse. We lean on the form
Speaker 6: or not the latter, but it's explaining that gap. That's
Speaker 6: the critical policy diagnosis over the next six months.
Speaker 5: How much is this sort of quietly a federal reserve
Speaker 5: that is aware of the fiscal sustainability of the United States.
Speaker 5: And I say this with a lot of questions around
Speaker 5: FED independence, but this is an issue facing central banks
Speaker 5: around the world, the idea that there is just so
Speaker 5: much government debt outstanding that inflation concerns have to be
Speaker 5: paired much more with fiscal sustainability and paying back that
Speaker 5: debt than they do, say anything else. I mean, how
Speaker 5: much is that coming into play here in the back
Speaker 5: of some people's minds.
Speaker 6: I think it's in the backdrop, but it's increasingly will
Speaker 6: be in the forefront of the next several years. And
Speaker 6: you see that in the price of gold, which would
Speaker 6: seem inconsistent its rise with the S and P five
Speaker 6: hundred in our framework, it's not. I mean, what we
Speaker 6: have said for two years is that there's this coming
Speaker 6: tug of war between AI's transformative ability on a positive side,
Speaker 6: and then if it disappoints some of the deficit pressures,
Speaker 6: which again you're mentioning. You see a little bit that
Speaker 6: in the so called the basement trade. We are just
Speaker 6: starting this sort of tug of war, and that is
Speaker 6: how the market is going to play out over the
Speaker 6: next three years.
Speaker 1: Is that tension Joe air inflation concern is going to
Speaker 1: be more front and center for the FED at the
Speaker 1: end of the month, not just because we're going to
Speaker 1: get the CPI report, but also because the rationing up
Speaker 1: of tensions and rhetoric and sanctions between Washington and Beijing.
Speaker 6: Yeah, I think they're still assuming and I think it's
Speaker 6: appropriate that although inflation has been sticky, some of the
Speaker 6: so called dare I say transitory factors are the tariffs,
Speaker 6: You have to look through some of that. That was
Speaker 6: our thesis that the Federal Reserve would start to ease policy,
Speaker 6: and its some one of the biggest rationales for us
Speaker 6: expecting it in October, and I think it's appropriate. I
Speaker 6: think the FED will look at the financial markets, less
Speaker 6: so gold, but more break even inflation rates, term premium,
Speaker 6: the treasury market, and that's still somewhat reassuring that we
Speaker 6: don't have a material inflation problem, certainly not what we
Speaker 6: had in twenty twenty two.
Speaker 4: Too.
Speaker 6: The key question comes back to where's the labor market
Speaker 6: six to twelve months. In a federal reserve that has ease,
Speaker 6: then there would be a reassessment.
Speaker 1: But when it comes to the recent trade rhetoric and
Speaker 1: the tit for tap between Washington and Beijing. If we
Speaker 1: don't get some sort of deal by the end of
Speaker 1: the month and this bleeds into twenty twenty six, how
Speaker 1: much more concerning does this story become for them?
Speaker 3: How challenging?
Speaker 6: Well, it becomes certainly concerning. Again, this is not a
Speaker 6: great shock if you're central banker, if you're an investor,
Speaker 6: to face right, because you have downward pressure on growth
Speaker 6: if tariff goes up even from the uncertainty, and you
Speaker 6: push up the inflation rates. So it's clearly stagflation area.
Speaker 6: It's a sort of card you don't want to be
Speaker 6: to have dealt I think you have a federal reserve.
Speaker 6: That's assuming the inflation is more temporary than the labor market.
Speaker 6: There's a little bit of risk in that assessment, but
Speaker 6: I think that's fair for now. But the drag into
Speaker 6: twenty twenty six that would be I think unexpected should
Speaker 6: the trade rhetoric.
Speaker 2: Accelerateed this more Bloomberg surveillance coming up after this. So
Speaker 2: here's the likes this morning, Americans feeling the pinch of
Speaker 2: the shutdown Stown May. President Trump promising to pay troops
Speaker 2: tomorrow but holding back checks from other federal workers. And
Speaker 2: I'm happy to say we can extend the conversation with
Speaker 2: New York Congressman Michael Laula Congressman. Welcome back to the
Speaker 2: program sir. The good news the military looks like it's
Speaker 2: getting paid. Can you just walk us through how you
Speaker 2: would characterize current negotiations.
Speaker 8: Well, the Democrats refused to do their job. You know,
Speaker 8: Ham Jeffries talks about getting permission. The reality here is
Speaker 8: that AOC and Zorn Mandani and the progressive left are
Speaker 8: who's driving this ship here. Chuck Schumer and Hakeem Jeffries
Speaker 8: have been petrified to do their jobs, and so they
Speaker 8: shut the government down for fear of a primary challenge
Speaker 8: from the left and to show their progressive base that
Speaker 8: they're quote unquote fighting back, resisting you know, President Trump.
Speaker 8: And it's fundamentally wrong. They are holding the American people hostage.
Speaker 8: House Republicans passed a clean continuing resolution over three weeks
Speaker 8: ago to keep the government funded, to pay for all
Speaker 8: of these critical programs, to ensure that our troops are paid,
Speaker 8: to ensure that border patrol agents are paid. And yet
Speaker 8: Democrats have voted over eight times against the clean CR.
Speaker 8: And we'll see what Chuck Schumer and Senate Democrats do today.
Speaker 3: But it doesn't look good.
Speaker 8: And you know, when I was in Washington last week,
Speaker 8: I went and confronted Hakeem Jeffries to his face and
Speaker 8: pointed out that if he's serious about tackling the healthcare
Speaker 8: challenges in our country, sign on to the bipartisan legislation
Speaker 8: that would do that. And he refused. So this really
Speaker 8: is not about healthcare. It's not about a specific policy outcome.
Speaker 8: This is about Democrats showing their progressive base that they're
Speaker 8: fighting back against President Trump. Meanwhile, look at the juxtaposition.
Speaker 8: President Trump on a twenty four hour trip to the
Speaker 8: Middle East secured peace and Democrats are playing patty cake
Speaker 8: here in Washington, DC, shutting the government down and holding
Speaker 8: the American people hostage.
Speaker 1: Well, were two weeks. There's going to be some off
Speaker 1: ramp at some point. Would you support structural changes to
Speaker 1: the Affordable Care Act premium subsidies in exchange for an
Speaker 1: extension to get the government.
Speaker 3: Back up and working well.
Speaker 8: To be clear, the off ramp is the clean cr
Speaker 8: that's been sitting in the Senate for over three weeks
Speaker 8: with respect to the Affordable Care Act number one since
Speaker 8: Obamacare took effect in twenty ten, you've seen premium skyrocket
Speaker 8: across the and Democrats put in place these enhanced tax
Speaker 8: credits during COVID. They were slated to expire at the
Speaker 8: end of this year. Democrats knew that they passed it
Speaker 8: into law, and they knew that they couldn't extend it
Speaker 8: beyond that period because of the cost associated with it.
Speaker 8: I have signed on to legislation to extend it by
Speaker 8: a year because we don't want Americans' healthcare premiums to spike.
Speaker 8: But it speaks to the fundamental problem with Obamacare, which
Speaker 8: is that it didn't actually do what it was intended
Speaker 8: to do, which is reduce health care cost in America,
Speaker 8: and in fact, it has exploded since its inception. So look,
Speaker 8: I am open to obviously solving the issue both short
Speaker 8: term and long term. We have to address the cost
Speaker 8: of health care in this country. But Democrats just you know,
Speaker 8: pounding their fists on the table, stomping their feet and
Speaker 8: demanding their way is not the way to govern. You
Speaker 8: don't hold the American people hostage. And by the way,
Speaker 8: don't take my word for it. Go look at every
Speaker 8: quote from Chuck Schumer, Hakeem Jeffries, Nancy Pelosi and name
Speaker 8: the Democrat. They all previously believed that you don't use
Speaker 8: government shutdowns to exert policy outcomes, and now fundamentally they
Speaker 8: have changed their view because Donald Trump is president.
Speaker 1: Congressman. Also being held hostage right now is data which
Speaker 1: the financial services industry, the FED, we all rely on.
Speaker 1: You are on the Financial Services Committee. Do you think
Speaker 1: the White House should deem the BLS data like the
Speaker 1: jobs report we're still waiting on essential.
Speaker 8: Look, obviously that information is critically important for the FED
Speaker 8: and others to do the work that is required. But
Speaker 8: this is the fundamental challenge. They're trying to figure out
Speaker 8: how to pay for, for instance, are troops, which is vital.
Speaker 8: They're trying to figure out how to pay for critical
Speaker 8: programs like Wick and Snap and so these are the
Speaker 8: very difficult decisions that any administration is put in because
Speaker 8: of the incalcitrants of my Democratic colleagues. Here. Look, I've
Speaker 8: been opposed to government shutdowns, regardless of who has tried
Speaker 8: to do it. I criticized my Republican colleagues last Congress
Speaker 8: when some of them wanted to shut the government down
Speaker 8: over Joe Biden's disastrous open borders, while I agreed with
Speaker 8: them on the merits. The fact is shutting the government
Speaker 8: down wasn't going to solve that problem. And the same
Speaker 8: applies here. What the Democrats are doing is creating more problems.
Speaker 8: The FED, to your point, needs to be able to
Speaker 8: do its job. They need to cut rates. They need
Speaker 8: the information with respect to jobs for instance, that is
Speaker 8: critically important. So yes, we want them to be able
Speaker 8: to get that information. The fastest way for all of
Speaker 8: this to come to an end, the fastest way to
Speaker 8: ensure that government does its job, is for my Democratic
Speaker 8: colleagues to go back to Washington today in the Senate
Speaker 8: and vote yes to open the government up and pass
Speaker 8: the clean cr The.
Speaker 1: White House has also taken aim on projects in New
Speaker 1: York City, eighteen million dollars worth of New York City
Speaker 1: infrastructure projects. You are in a swing district and you
Speaker 1: are facing a lot of challenges. A lot of Democrats
Speaker 1: are lining up to try to flip that seat come
Speaker 1: the midterms. Are you concerned about potentially the pushback you're
Speaker 1: going to get from things like this billions of dollars
Speaker 1: being frozen right here in New York.
Speaker 8: Look, I've already spoken out against the freeze on that project,
Speaker 8: and I've been in touch with the administration to get
Speaker 8: that project back up and running. Are they going to
Speaker 8: But again, the fastest way to do that is to
Speaker 8: pass the clean cr And that's the point that I've
Speaker 8: made over the last week to my New York colleagues
Speaker 8: to the press that these projects can easily come back
Speaker 8: online when the government is open and running. Gateway is
Speaker 8: a critical project for my district. We don't have a
Speaker 8: one seat ride from Rockland County where I live. Gateway
Speaker 8: will provide that. So this is a critical infrastructure project,
Speaker 8: not just for New York City or New Jersey, but
Speaker 8: for the region. But this is something that I've fully
Speaker 8: supported in terms of getting the funding for that project
Speaker 8: and will continue to fight to do it. But again,
Speaker 8: based on conversations, it's not that hard to figure out
Speaker 8: if you open up the government, a lot of this
Speaker 8: stuff will be resolved.
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Speaker 6: Mm hmm