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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at

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Speaker 1: noon and five pm Eastern on Apple Coarckley and Android

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 2: With Eyes and Ears on the Treasury Secretary. Today, we're

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Speaker 2: going to get back to the debate around homeland security

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Speaker 2: funding with two important conversations coming up. Nicole Malia Takis,

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Speaker 2: the Republican from New York, is with us. We'll have

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Speaker 2: to compare notes with Brendan Boyle, the Democrat from Pennsylvania,

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Speaker 2: as well. Eight days until another possible shutdown for homeland security,

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Speaker 2: the issue of affordability though in the future of the Fed.

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Speaker 2: We're on the table today before the Senate Banking Committee,

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Speaker 2: where Scott Bessett spent a second day of testimony.

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Speaker 3: It was House sided yesterday.

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Speaker 2: Finn served today to Banking where Senator Elizabeth Warren was

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Speaker 2: looking forward to spending some time with the Secretary. She

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Speaker 2: had already telegraphed her questioning and what after, mister Beston

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Speaker 2: on the issue of affordability, which the President has called

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Speaker 2: a Democrat hoax.

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Speaker 3: She asked him about that rhetoric.

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Speaker 4: Listen, Senator, it may be a bit nuanced for you,

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Speaker 4: but what President Trump is referring to is the media

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Speaker 4: saying that the affordability crisis was generated by this administration,

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Speaker 4: when it was you and President Biden who destroyed the

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Speaker 4: buying power of the American people. So there is an

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Speaker 4: affordability crisis, and you were front and center in it.

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Speaker 5: So let me make sure that I understand.

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Speaker 6: Donald Trump is not saying that affordability what's happening to

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Speaker 6: families right now is a hoax.

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Speaker 4: He is saying that trying to lay the blame at

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Speaker 4: this administration rather than the Biden Laren economy is a hoax.

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Speaker 3: A hoax.

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Speaker 2: Heesed the word on the microphone and said it would

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Speaker 2: be up to the President if he wants his nominee

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Speaker 2: for Chair of the Federal Reserve to lower interest rates

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Speaker 2: to his liking, as it's suing Kevin Warsh, We'll have

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Speaker 2: much more to talk about here with Tyler Kendall, who's

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Speaker 2: actually been in the room and on Capitol Hill for

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Speaker 2: the balance of testimony. Outside Room five point thirty eight

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Speaker 2: in the Dirkson Senate Office building. Tyler, I know you've

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Speaker 2: been talking to members of the panel, including Tom Tillis,

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Speaker 2: on their way in and out of questioning how's it

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Speaker 2: been going there?

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Speaker 7: Yeah, hey, Joe, I mean you mentioned there. One of

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Speaker 7: the highlight moments of this hearing was when Senator Elizabeth Warren,

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Speaker 7: the ranking member on this Banking committee, pressed the Treasury

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Speaker 7: Secretary about whether or not a potential confirmed FED Chair,

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Speaker 7: Kevin worsh would be protected from criminal prosecution if he

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Speaker 7: didn't lower rates, and he said that that would be

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Speaker 7: up to the President because really the issue of the

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Speaker 7: future FED chair is dominating the conversation here in front

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Speaker 7: of the Senate Banking Committee, because this is the committee

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Speaker 7: considered to be the gatekeeper when it comes to that nomination.

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Speaker 7: It has to go through Senate Banking first before it

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Speaker 7: can advance to the full floor. Mentioned Tom Tillis because

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Speaker 7: he is that swing vote on the committee Republicans have

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Speaker 7: a thirteen to eleven majority, and he is threatening to

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Speaker 7: block that nomination until the legal matter against Jerome Powell

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Speaker 7: is ultimately resolved. I asked him if he had any

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Speaker 7: update when it comes to his opposition here. He says

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Speaker 7: that he doesn't as of now it still remains the same.

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Speaker 7: He needs to see that legal matter to be resolved

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Speaker 7: in order to get his vote. I also asked him

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Speaker 7: if he's been in touch with the administration. He says

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Speaker 7: that he hasn't when it comes to this very point.

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Speaker 7: He also said that he's not sure when a potential

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Speaker 7: confirmation hearing date would even be set, because Joe, that's

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Speaker 7: going to be absolutely critical as we wait to see

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Speaker 7: what this potential timeline could be. Considering that Jerome Powell's

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Speaker 7: term is up as chair in May of twenty twenty six,

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Speaker 7: I will leave you with that. I've spent a lot

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Speaker 7: of time with some other Republicans on this committee. We're

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Speaker 7: starting to seem a theme emerge. While they haven't gone

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Speaker 7: as far as Tom Tillis, a lot of them are

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Speaker 7: saying that they do not think that Powell conducted anything

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Speaker 7: criminal during his testimony to this committee last year. That

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Speaker 7: is currently the subject of the Department of Justices investigation.

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Speaker 2: It's an awfully active environment you're in there in the

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Speaker 2: court or at Dirkson Tyler, so we won't take too

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Speaker 2: much of your time here. Do we have any sense

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Speaker 2: of when a Kevin worsh confirmation hearing might be scheduled, Joe.

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Speaker 7: At this point, I've asked a few different senators what

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Speaker 7: that mechanism, what that procedure is going to look like,

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Speaker 7: considering that we have this threat from Senator Tom till

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Speaker 7: Is hanging over it, and at this point we haven't

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Speaker 7: gone any confirmation on what that would look like. But

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Speaker 7: we know that we're up against a timeline here May

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Speaker 7: of twenty twenty six, that is when Jerome Powell's term

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Speaker 7: is going to be up, and this is raising questions.

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Speaker 7: We've done a few deep dives on the terminal looking

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Speaker 7: into this about what would happen if a pick isn't

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Speaker 7: yet confirmed. So a lot of different factors that are

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Speaker 7: swirling here. Though they all tell me, Joe that they

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Speaker 7: want to see this done quickly. They want to get

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Speaker 7: the president's pick in because while Kevin worsh does have

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Speaker 7: pretty broad support among Republicans, it is rather questions about

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Speaker 7: whether or not they support the investigation to Powell that

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Speaker 7: is starting to become a fissuer here for the nomination.

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Speaker 2: Well, this has been a fascinating exercise today, Tyler, thank

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Speaker 2: you so much. Tyler Kendall with us from the Senate

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Speaker 2: Banking Committee, hearing room just down the street from our

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Speaker 2: bureau here in Washington. Must be lunchtime. Everybody is everywhere

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Speaker 2: in the court today, But thank you, Tyler, as we

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Speaker 2: turn our attention to the big debate in the building,

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Speaker 2: which is not so much about Kevin worsh right now,

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Speaker 2: but funding for the Department of Homeland Security.

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Speaker 3: We just went through all of this.

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Speaker 2: The government was just reopened, and now of course we're

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Speaker 2: looking at the potential for another partial shutdown, just with

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Speaker 2: respect to this agency coming at the end of next week,

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Speaker 2: eight days away, which brings us to the list of

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Speaker 2: demands that we have here. This is the letter from

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Speaker 2: Chuck Schumer and Hakem. Jeffries that went to Republican leaders

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Speaker 2: in the House and the Senate.

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Speaker 3: We're going to walk through these demands.

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Speaker 2: Having heard from President Trump in his interview yesterday with NBC,

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Speaker 2: and he was talking about a softer approach, maybe a

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Speaker 2: different posture in cities like Minneapolis.

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Speaker 3: When it comes to ice. Listen, I learned that.

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Speaker 8: Maybe we can use a little bit of a softer touch. Look,

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Speaker 8: I'm not happy with the two incidents. It's not you know,

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Speaker 8: it's both of them, got one or the other. He

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Speaker 8: was not an angel, and she was not an angel.

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Speaker 8: You know, you look at some tapes from back. But

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Speaker 8: so I'm not happy with what happened there. Nobody could

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Speaker 8: be happy, and Ice wasn't happy either. But I'm going

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Speaker 8: to always be with our great people of.

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Speaker 2: Law enforcement, which brings us to the general Lady from

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Speaker 2: Staten Island. And I'll remind everybody that we have been

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Speaker 2: talking with Congresswoman Nicole Malia talkis about the issue of

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Speaker 2: immigration specific to border enforcement for years now, and now

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Speaker 2: we're getting to this place and time where it's very

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Speaker 2: interesting to hear from members of both sides of the

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Speaker 2: aisle when it comes to enforcement in cities like Minneapolis.

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Speaker 2: She's representing, of course New York's eleventh district. Congresswoman, it's

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Speaker 2: great to have you back on Bloomberg.

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Speaker 3: Good to see you, get to be with you.

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Speaker 9: Thank you.

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Speaker 2: So let's go through a couple of these things. We'll

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Speaker 2: run through these this list of demands. How do you

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Speaker 2: interpret the president's remarks because it hasn't necessarily signaled to

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Speaker 2: change in policy, is it a change in approach on

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Speaker 2: any level for you?

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Speaker 10: Look, I think I think the president the administration recognizes

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Speaker 10: that the tactics that ICE was using has not has

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Speaker 10: not been popular, have not been popular, regardless of where

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Speaker 10: you sit on the spectrum. I think people who wanted

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Speaker 10: to see strong border enforcement we achieved that. Right there's

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Speaker 10: no more border crossings. People are not being released in

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Speaker 10: the country. The border has been secured. Municipalities like mine

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Speaker 10: who had migrant gangs and drug traffickers and criminals wreaking havoc,

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Speaker 10: those that has been cleaned up. Those individuals are being deported.

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Speaker 10: But I think when they see the aggression of ICE,

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Speaker 10: there is a there is a concern there. And now ICE,

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Speaker 10: you know, ICE has really no choice but to go

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Speaker 10: in the municipalities and find these perpetrators. Why, because these

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Speaker 10: local municipalities are not cooperating. New York City is not cooperating,

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Speaker 10: Minneapolis not cooperating. We used to be able to have

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Speaker 10: ICE and Riker's Island and they would take the criminals

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Speaker 10: directly from there upon release from jail and go into

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Speaker 10: federal custody. Bill Deblasio unfortunately changed that this mayor wants

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Speaker 10: to continue having that policy of no cooperation, and so

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Speaker 10: ICE has no choice but to go into these cities

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Speaker 10: and find these individuals, which makes it less safe for

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Speaker 10: the officers, for the community, for the immigrants. But I

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Speaker 10: should remind people when they were in Minneapolis a couple

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Speaker 10: of weeks ago and this happened. They were arresting two

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Speaker 10: murderers who had detained fur orders of removal going back

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Speaker 10: to twenty thirteen and twenty fifteen, a guy with twenty

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Speaker 10: four criminal convictions. A guy was convicted of sodomizing a

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Speaker 10: twelve year old girl. So these are real criminals that

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Speaker 10: go in after and unfortunately, when they don't get cooperation,

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Speaker 10: it makes it less safe for everyone.

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Speaker 2: So what do you think of the contours of this debate.

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Speaker 2: We've been spending time this week with a number of

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Speaker 2: Republican Senators John Corden and Ted Cruz, Ted Budd largely

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Speaker 2: opposed to what Democrats are offering, specifically when it comes

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Speaker 2: to d masking.

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Speaker 3: That seems to be a real flashpoint here.

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Speaker 2: And I know that there are worries about officers being targeted,

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Speaker 2: being docked, and so forth, But when you look at

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Speaker 2: this list, this is a lot more lengthy and a

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Speaker 2: lot more detailed than I think a lot of Republicans

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Speaker 2: saw coming. We've been dealing with kind of four buckets masks, BODYCMS, warrants,

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Speaker 2: and training. This goes a lot further when we talk

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Speaker 2: about targeted enforcement. DHS cannot enter a private property without

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Speaker 2: a judicial warrant, no masks, require ID, protect sensitive locations,

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Speaker 2: stop racial profiling, uphold use of force standards. Are these

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Speaker 2: controversial or could they end up in a piece of legislation.

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Speaker 10: I think a lot of them actually will hinder their

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Speaker 10: ability to do their job, which is to actually get

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Speaker 10: these individuals aside from the body cameras body cameras.

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Speaker 9: I know a lot of Republicans are against them.

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Speaker 10: I do support it, and I support it why because

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Speaker 10: it tells the whole story. And we have them in NYPD,

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Speaker 10: and I was a skeptic of them in the very

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Speaker 10: beginning when this became a law on the state level,

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Speaker 10: and I was a state life just later at the time.

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Speaker 10: But the unions even support them, and the officers support them.

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Speaker 10: And why because it tells the full story. And that's important,

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Speaker 10: right because most of the time, if not all the time,

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Speaker 10: these officers are actually following the book, they're following the

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Speaker 10: training manual how they're supposed to perform in certain situations.

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Speaker 10: And if the camera tells the full story, it helps

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Speaker 10: clear their names and can really put a lot to rest.

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Speaker 10: And so I think that that is one where I

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Speaker 10: would disagree with some of the folks in.

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Speaker 9: My party, but some of the others.

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Speaker 10: A judicial warrant is an issue simply because the time

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Speaker 10: it's going to take to get a court order is

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Speaker 10: going to be really hindering the operations. I mean, if

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Speaker 10: you have a murderer, you know that you're trying to

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Speaker 10: get or any type of convicted criminal who should not

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Speaker 10: be in this country to have to go to court

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Speaker 10: and get into war and do all these things I

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Speaker 10: think could be a real complication and hinder the operations

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Speaker 10: the masks. You know, if these municipalities cooperated, we wouldn't

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Speaker 10: have these raids where the agitators are disrupting, and that

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Speaker 10: could be avoided if there was just some more cooperation

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Speaker 10: with these sanctuary cities. So I think there's Look, I

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Speaker 10: think there's going to be some type of compromise. There

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Speaker 10: needs to be because you need those sixty votes in

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Speaker 10: the Senate, and it's going to have to be a

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Speaker 10: little bit of a give and take. And I think

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Speaker 10: that there's some common ground, maybe not necessarily with the

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Speaker 10: enforcement some stuff with the enforcement. But I would say,

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Speaker 10: what about just regular immigration policy. I've been pushing the

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Speaker 10: administration to approve the backlog of renewals for work authorization.

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Speaker 10: This is a big issue, not just in my district,

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Speaker 10: across the country. Employers who rely on these people for employees.

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Speaker 10: They're filling an economic needy' contributing to our society. They

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Speaker 10: don't have any work and criminal history, they're paying taxes,

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Speaker 10: They're losing their status because of the lag and the

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Speaker 10: time that it's taking to approve these work authorization renewals.

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Speaker 10: They lose their job as a result, and the employer

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Speaker 10: loses a good worker. So if we can just make

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Speaker 10: some progress in some of that stuff, it shows compassion

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Speaker 10: from the administration, It helps our economy, and it helps

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Speaker 10: these people who are here trying to find a better

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Speaker 10: less is a big.

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Speaker 2: Deal for our audience as an issue. Do you think

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Speaker 2: we can avoid a shutdown next Friday? Does there need

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Speaker 2: to be another cr before we move on to some

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Speaker 2: other issues.

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Speaker 10: So there won't be a shutdown it's just the Homeland Security. Yeah, Look,

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Speaker 10: I hope not. I mean, I hope the Democrats recognize

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Speaker 10: here that when they mess with the Department of homeland Security.

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Speaker 10: It's not just ICE. In fact, ICE has the resources.

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Speaker 9: From kind of the irony, Yeah.

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Speaker 10: Ice has the resources. You're shutting down the TSA airport

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Speaker 10: screening and flight security, You're shutting down counter terrorism, cybersecurity

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Speaker 10: programs and coast guard. You know, these are important operations

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Speaker 10: that need you know, don't mess with our homeland security,

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Speaker 10: and especially these legislative leaders they're from New York. Schumer

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Speaker 10: and Jeffrey should know better than to try to play

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Speaker 10: politics with homeland security. So I do hope that there's

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Speaker 10: some compromise here, we get to a resolution so there

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Speaker 10: won't be a lapse in funding for all those other

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Speaker 10: critical agencies under Department of Homeland Security.

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Speaker 3: FEMA is in that group, that's right, FEMA.

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Speaker 2: I was shocked to see seventeen people have died in

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Speaker 2: New York from freezing cold weather, and this has been

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Speaker 2: one heck of a winter. Congresswoman, another cold front is

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Speaker 2: coming this weekend.

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Speaker 11: Though.

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Speaker 3: Is Mayor Mombanni on top of this?

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Speaker 10: Look, I hope he's you know, it seems like he's

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Speaker 10: doing some on the job training. I hope he's paying

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Speaker 10: attention to how this first storm went, what happened there

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Speaker 10: that change in policy to not remove people who are

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Speaker 10: homeless from the streets in these frigid weathers was obviously

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Speaker 10: a deadly mistake. Mayors in the past have always proactively

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Speaker 10: sought shelter for those individuals, and there's no reason.

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Speaker 9: Why we shouldn't be able to do that.

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Speaker 10: Remember, we had all these migrants in luxury hotel rooms

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Speaker 10: at taxpayer expense. There's no reason why you can't help

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Speaker 10: these individuals. And a lot of them are mentally ill,

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Speaker 10: they don't know, they can't make a decision for themselves,

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Speaker 10: in some cases seek shelter, and so I think the

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Speaker 10: mayor made a big mistake there, and not to mention

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Speaker 10: the disaster that we're seeing in terms of garbage piling

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Speaker 10: up all over the streets of New York City.

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Speaker 9: That's not common, you know, that's not common.

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Speaker 10: You know, maybe some of his advocates are saying, well,

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Speaker 10: it's a snowstorm, that's what happens.

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Speaker 4: Now.

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Speaker 10: No, No, he needs to put resources back into the

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Speaker 10: basic services that people deserve. He's cutting over time for

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Speaker 10: our public safety officers. He's not putting the resources necessary

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Speaker 10: to get the streets cleaned in a timely manner. And

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Speaker 10: I think you know. I hope he's learning for this,

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Speaker 10: learning from this, and adjusting as we go along.

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Speaker 3: Well.

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Speaker 2: In our remaining moment here, I had to note that

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Speaker 2: he has now endorsed Kathy Hochel's reelection campaign with the

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Speaker 2: Adrian Adams. What does Bruce Blakeman need to do to

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Speaker 2: be the first Republican in about two decades to win

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Speaker 2: that seat.

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Speaker 10: I think Bruce needs to remind everyone the radical positions

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Speaker 10: that these two individuals have taken. Not only did they

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Speaker 10: support the bail law that was disastrous and led to

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Speaker 10: crime skyrocketing, but Adrian Adams in portent ticular, I mean

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Speaker 10: she voted for she was a co sponsor of non

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Speaker 10: citizen voting, which is a law that we went to

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Speaker 10: court and we stopped from taking effect, thankfully. But she

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Speaker 10: also voted to defund the NYPD by a billion dollars

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Speaker 10: tie the hands of our NYPD officers, voted to increase

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Speaker 10: the property tax levy year after year. So I would

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Speaker 10: say that these are radical positions that are hurting the

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Speaker 10: cost of living and making it much less affordable in

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Speaker 10: New York City to live, particularly for our middle class,

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Speaker 10: and they've made us less safe. Now we've seen some

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Speaker 10: crime come down. It's a result of President Trump. People

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Speaker 10: need to recognize that he's deported criminals. He's put pressure

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Speaker 10: on these municipalities. That's why New York City is safer

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Speaker 10: today than it was just a little over a year ago.

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Speaker 3: I know your new congressional map is due tomorrow.

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Speaker 2: Come back and talk to us next time about what's

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Speaker 2: going to happen with your district.

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Speaker 10: Yeah, we hope to keep our map as is because

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Speaker 10: this is a grab by the Democrats who try to

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Speaker 10: take the only Republican voice in New York City.

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Speaker 3: First time. Nicole Malia Takis from New York Live, stay

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Speaker 3: with us on Balance of Power. We'll have much more

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Speaker 3: coming up after this.

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Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch

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Speaker 1: us live weekdays at noon and five pm Eastern on Apple,

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Speaker 1: Cocklay and Android Auto with the Bloomberg Business app. You

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Speaker 1: can also listen live on Amazon Alexa from our flagship

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Speaker 1: New York station, Just say Alexa play Bloomberg eleven thirty.

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Speaker 2: Thanks for being with us on the Thursday edition live

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Speaker 2: from Washington. I'm Joe Matthew with our eyes on the

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Speaker 2: White House here on Bloomberg TV and on Wall Street

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Speaker 2: with another doozy of a session. It's been difficult so far.

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Speaker 2: The S and P five hundred now down another one

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Speaker 2: percent to day, losing about sixty eight points, and we're

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Speaker 2: watching Bitcoin tumble further. It just now broke through sixty

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Speaker 2: six thousand on the way down. We have a sixty

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Speaker 2: five handle on bitcoin for the first time in a

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Speaker 2: long time. It is down ten percent, more than seven

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Speaker 2: thousand to sixty five five.

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Speaker 3: Hundred dollars for one bitcoin.

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Speaker 2: This is a cascade of selling that continues following earnings

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Speaker 2: from Google. Alphabet also lower today. We should mention Google

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Speaker 2: is down about two percent. Seeing a bid in some stocks.

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Speaker 2: But this has been a difficult session. The nasdack down

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Speaker 2: two hundred and sixty seven points a little more than

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Speaker 2: one percent. Big questions about what takes place a week

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Speaker 2: from tomorrow with regard to the Department of Homeland Security.

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Speaker 2: As we just illuminated in our conversation with Nicole Maliatakis,

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Speaker 2: is eight days enough to strike a deal on ice

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Speaker 2: restrictions with new restrictions, new proposals, demands you might say,

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Speaker 2: put forth by Chuck Schumer and jakeem Jeffreys that we

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Speaker 2: will run through in a moment with Democrat Brendan Boyle

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Speaker 2: of Pennsylvania, the top Democrat on the Budget Committee, whose

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Speaker 2: district attorney in Philadelphia, Larry Krasner, had some pretty tough

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Speaker 2: remarks about ice in Minneapolis and other cities around the country.

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Speaker 3: Listen, there will.

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Speaker 12: Be accountability now, there will be accountability in the future.

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Speaker 12: There will be accountability after Trump is out of office.

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Speaker 9: If we have to hunt you down the way they.

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Speaker 13: Hunted down Nazis for decades, we will find your identities,

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Speaker 13: We will find you, We will achieve justice, and we

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Speaker 13: will do so under the Constitution and the laws of

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Speaker 13: the United States.

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Speaker 2: Democratic Congressman Brendan Boyle of Pennsylvania's second district, ranking member

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Speaker 2: of the House Budget Committee is where it's now live

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Speaker 2: on Bloomberg TV and radio. Congressman, thanks for your patients.

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Speaker 2: It's great to have you back on balance of power.

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Speaker 2: Let's start with the rhetoric. Do you worry that Democrats

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Speaker 2: will be tied to rhetoric like this when we hear

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Speaker 2: abolish ice equated with defund the police. Senator Ted Cruz

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Speaker 2: was on the program last evening decrying Democrats use of

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Speaker 2: the term Nazi in that case, how worried, are you

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Speaker 2: about this moment we're in.

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Speaker 11: Well, first, the only people I hear using the term

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Speaker 11: defund the police anymore are Republicans saying that Democrats stand

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Speaker 11: for that, when that's patently false. I have never stood

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Speaker 11: for that, and have actually publicly, going.

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Speaker 14: Back years, criticized that sort of rhetoric.

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Speaker 11: That again, I don't know one elected Democratic colleague of

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Speaker 11: mine in Congress who supports that or uses that phrase.

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Speaker 11: I do understand, though, why Tech Cruz and other Republicans

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Speaker 11: want to distract from the issues, because, let's face it,

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Speaker 11: they're very afraid about this November midterm election.

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Speaker 14: We just saw a special election in Texas in.

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Speaker 11: Which a Democratic candidate won a district that Donald Trump

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Speaker 11: had won the last November.

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Speaker 14: In a landslide. So we're in an.

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Speaker 11: Environment right now in which Democrats are overperforming by double

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Speaker 11: digits on average every single special election that's taken place

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Speaker 11: ever since January of last year.

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Speaker 14: So it's not.

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Speaker 11: Surprising to me that Republicans want to talk about anything

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Speaker 11: other than their pitiful record in office.

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Speaker 2: I'm sure you've seen this letter that I refer to.

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Speaker 2: It is addressed to Mike Johnson and John Thune. It

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Speaker 2: is from your leader in the House Hockeying, Jeffries and

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Speaker 2: the Senate leader for Democrats, the minority leader, Chuck Schumer.

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Speaker 2: Targeted enforcement is number one. There are ten on here.

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Speaker 2: DHS officers cannot enter private property without a judicial warrant.

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Speaker 2: This is something Republicans have pushed back hard on, suggesting

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Speaker 2: it would simply take too long for an enforcement action

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Speaker 2: to come together. Number two, Congressman has been extremely controversial,

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Speaker 2: which is curious to some, and that's d masking.

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Speaker 3: No masks allowed.

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Speaker 2: Prohibit ice and Immigration enforcement agents from wearing face coverings.

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Speaker 2: John Cornyn two days ago on Bloomberg called that an

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Speaker 2: insult to the agents.

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Speaker 3: Is this going to be the sticking point on a deal?

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Speaker 11: Well, I have to say I'm very confused by that,

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Speaker 11: although I understand why John Cornan wants to pretend to

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Speaker 11: be more conservative than he is at the moment, facing

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Speaker 11: a very difficult Republican primary for re election, and a

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Speaker 11: lot of Philadelphia police officers live in a neighborhood that

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Speaker 11: actually has a lot of Philly police. The officers here

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Speaker 11: in Philadelphia and indeed every community in the country, they

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Speaker 11: don't wear masks their public people.

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Speaker 14: They're professionals.

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Speaker 11: They wear uniforms, they have their names in the right

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Speaker 11: by their chests, their faces are visible.

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Speaker 14: Why is ICE any different?

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Speaker 11: Why is ICE acting like they're somehow above the law.

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Speaker 11: Why should they get special treatment?

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Speaker 14: You know?

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Speaker 11: One of the reasons why law enforcement doesn't wear masks

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Speaker 11: is because they want to have the trust of the community.

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Speaker 11: I think that ices, and again I have respect for

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Speaker 11: anyone who's in law enforcement. I've always said that this

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Speaker 11: is one of the most difficult jobs in society. But

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Speaker 11: I think the majority of the American people, as polling shows,

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Speaker 11: are pretty disturbed by what we're seeing in terms of

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Speaker 11: what happening on the streets of Minneapolis and the way

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Speaker 11: ICE is conducting itself. So I'm someone who has always

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Speaker 11: been pro law enforcement, understands the difficult jobs they have,

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Speaker 11: but also recognizes that we see real chaos in mayhem

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Speaker 11: on the streets of Minneapolis.

439
00:22:16,640 --> 00:22:20,240
Speaker 14: That isn't making any of us safer. Frankly, it's making

440
00:22:20,359 --> 00:22:22,800
Speaker 14: us less safe.

441
00:22:23,400 --> 00:22:25,760
Speaker 2: So what's more likely here with eight days to go,

442
00:22:26,400 --> 00:22:30,760
Speaker 2: a deal that resembles this list of restrictions or a

443
00:22:30,880 --> 00:22:33,960
Speaker 2: one year or full year cr for the Department of

444
00:22:33,960 --> 00:22:34,920
Speaker 2: Homeland Security.

445
00:22:36,080 --> 00:22:37,960
Speaker 11: Well, so just to be clear, I think reining in

446
00:22:38,119 --> 00:22:42,000
Speaker 11: ICE and having it act like a normal law enforcement

447
00:22:42,040 --> 00:22:45,879
Speaker 11: agency is the appropriate and right policy. I think a

448
00:22:45,920 --> 00:22:49,800
Speaker 11: pretty solid majority of Americans agree with me that on that,

449
00:22:49,920 --> 00:22:51,520
Speaker 11: as recent polling has showed.

450
00:22:51,960 --> 00:22:53,919
Speaker 14: Now the question is, well the Trump White.

451
00:22:53,640 --> 00:22:57,119
Speaker 11: House back down and accept that over the course of

452
00:22:57,160 --> 00:23:00,240
Speaker 11: the next eight days. I have to be honest, I'm

453
00:23:00,760 --> 00:23:03,919
Speaker 11: very skeptical that that will happen. So I do fear that,

454
00:23:04,640 --> 00:23:09,040
Speaker 11: specifically to DHS, that we will face either another cr

455
00:23:09,880 --> 00:23:14,680
Speaker 11: or possibly a long shutdown. The quicker that this White

456
00:23:14,720 --> 00:23:18,679
Speaker 11: House recognizes that the way ICE is behaving is not

457
00:23:18,920 --> 00:23:24,240
Speaker 11: right and not helping achieve their stated mission is the

458
00:23:24,280 --> 00:23:25,040
Speaker 11: best route to go.

459
00:23:26,400 --> 00:23:30,480
Speaker 2: Do you worry that Philadelphia is on the list? What

460
00:23:30,600 --> 00:23:34,639
Speaker 2: happens if Dan Bongino shows up in your town, your neighborhood.

461
00:23:35,600 --> 00:23:39,560
Speaker 11: You know, I have to say I would not, And

462
00:23:39,640 --> 00:23:41,600
Speaker 11: I've a number of friends who are in Minneapolis.

463
00:23:41,640 --> 00:23:43,800
Speaker 14: They've talked about just how horrific it's been.

464
00:23:44,320 --> 00:23:47,000
Speaker 11: I certainly don't want to see that on the streets

465
00:23:47,040 --> 00:23:49,920
Speaker 11: of Philadelphia. By the way, I would point out, if

466
00:23:49,960 --> 00:23:54,959
Speaker 11: you mind a moment of bragging, Philadelphia had fewer violent

467
00:23:55,040 --> 00:23:58,800
Speaker 11: crimes last year and fewer murders than at any point

468
00:23:58,800 --> 00:23:59,960
Speaker 11: in the last sixty years.

469
00:24:00,280 --> 00:24:02,159
Speaker 14: So this is literally the safest.

470
00:24:02,560 --> 00:24:04,240
Speaker 11: And I say this as someone who's a born and

471
00:24:04,320 --> 00:24:07,600
Speaker 11: raised Philadelphia and represents the district where he grew up.

472
00:24:08,000 --> 00:24:11,359
Speaker 11: Philadelphia has actually never been safer at any point in

473
00:24:11,440 --> 00:24:14,240
Speaker 11: my lifetime than it is now. That's something that we

474
00:24:14,240 --> 00:24:18,000
Speaker 11: should celebrate and that other communities can learn from. The

475
00:24:18,119 --> 00:24:22,280
Speaker 11: last thing we need is a repeat of Minneapolis here

476
00:24:22,359 --> 00:24:23,720
Speaker 11: on the streets of Philadelphia.

477
00:24:24,840 --> 00:24:26,240
Speaker 2: Well, this is a heck of a time to be

478
00:24:26,320 --> 00:24:29,520
Speaker 2: a member of Congress. Once this is resolved and we

479
00:24:29,640 --> 00:24:32,960
Speaker 2: start getting into the throes of primary season, Congressman, what's

480
00:24:33,000 --> 00:24:35,440
Speaker 2: the appropriations process going to be like from your view

481
00:24:35,480 --> 00:24:37,760
Speaker 2: on the Budget Committee? Do we go into campaign mode

482
00:24:37,800 --> 00:24:40,400
Speaker 2: or is there going to be an agenda for this Congress?

483
00:24:40,440 --> 00:24:42,120
Speaker 2: So I suspect you're going to point me to Mike

484
00:24:42,160 --> 00:24:44,280
Speaker 2: Johnson on that one.

485
00:24:44,720 --> 00:24:48,000
Speaker 11: Well, you know, the reality is with two year terms.

486
00:24:48,800 --> 00:24:51,119
Speaker 11: By the way, the provision of the Constitution, my wife

487
00:24:51,680 --> 00:24:54,119
Speaker 11: most dislikes the fact that members of the House of

488
00:24:54,200 --> 00:24:56,360
Speaker 11: Representatives have to run every two years.

489
00:24:56,760 --> 00:24:57,560
Speaker 3: I don't think you're.

490
00:24:57,440 --> 00:25:00,200
Speaker 14: Ever really out of election cycle.

491
00:25:01,200 --> 00:25:04,480
Speaker 11: On the positive, it does keep you connected to the community.

492
00:25:04,560 --> 00:25:05,560
Speaker 14: That you represent.

493
00:25:05,680 --> 00:25:10,640
Speaker 11: I'm back home here in Philadelphia because we adjourned session

494
00:25:10,840 --> 00:25:14,920
Speaker 11: late yesterday. So you know, I think that over the

495
00:25:15,040 --> 00:25:17,400
Speaker 11: last dozen years or so that I've been in Congress,

496
00:25:17,400 --> 00:25:20,840
Speaker 11: I've been able to balance the Washington d C. Aspect

497
00:25:20,880 --> 00:25:23,280
Speaker 11: of the job as ranking member of the Budget Committee.

498
00:25:23,280 --> 00:25:27,240
Speaker 11: It's obviously an enormously time consuming position that I have

499
00:25:27,400 --> 00:25:30,240
Speaker 11: within the Congress, yet at the same time being back

500
00:25:30,280 --> 00:25:33,120
Speaker 11: home and being connected to the constituents that I represent.

501
00:25:33,520 --> 00:25:37,359
Speaker 11: So I don't foresee any sort of change over the

502
00:25:37,400 --> 00:25:40,840
Speaker 11: next few months compared to the way it's been the

503
00:25:40,840 --> 00:25:45,280
Speaker 11: previous year, with one exception. With one exception, perhaps when

504
00:25:45,280 --> 00:25:51,160
Speaker 11: we get beyond these primary dates and primary elections, perhaps

505
00:25:51,160 --> 00:25:54,240
Speaker 11: we will see more House Republicans finally begin to break

506
00:25:54,280 --> 00:25:59,640
Speaker 11: from this White House and actually vote according to how

507
00:25:59,680 --> 00:26:03,000
Speaker 11: they actually act in private and what they say about

508
00:26:03,000 --> 00:26:05,720
Speaker 11: the Trump White House in private, but are too afraid

509
00:26:05,760 --> 00:26:08,560
Speaker 11: to say that or to act on that in public

510
00:26:08,600 --> 00:26:13,400
Speaker 11: because they're so afraid of their Republican primary electorate. As

511
00:26:13,400 --> 00:26:16,199
Speaker 11: they're facing what will probably be a very difficult midterm

512
00:26:16,240 --> 00:26:19,040
Speaker 11: election in November, I think you will see more and

513
00:26:19,119 --> 00:26:23,480
Speaker 11: more of them attempt to drive some distance between themselves

514
00:26:23,520 --> 00:26:25,760
Speaker 11: and the Trump White House because it'll be in their

515
00:26:25,800 --> 00:26:28,840
Speaker 11: electoral best interest to do so.

516
00:26:28,880 --> 00:26:30,760
Speaker 2: It's great to have you back in Congressman. Thanks for

517
00:26:30,800 --> 00:26:34,720
Speaker 2: the time as always. Brendan Boyle from Pennsylvania, or maybe

518
00:26:34,760 --> 00:26:38,480
Speaker 2: I should just say Philadelphia Democrats, Ranking Member, House Budget Committee.

519
00:26:38,520 --> 00:26:39,680
Speaker 3: I'm Joe, Matthew and Washington.

520
00:26:39,760 --> 00:26:42,240
Speaker 2: Let's assemble our panel to consider what we just heard

521
00:26:42,240 --> 00:26:45,600
Speaker 2: from mister Boyle and from miss Malia Takis. Bloomberg Politics

522
00:26:45,600 --> 00:26:48,440
Speaker 2: contributors Rick Davis and Adam Hodge are with us. Rick

523
00:26:48,560 --> 00:26:51,600
Speaker 2: is our Republican strategist, of course, partner at Stone Court Capital.

524
00:26:51,800 --> 00:26:55,520
Speaker 2: Adam is our Democratic strategist partner at Bully Pulpit International.

525
00:26:55,520 --> 00:26:57,119
Speaker 2: I'd love for both of you to take a swing

526
00:26:57,200 --> 00:27:00,359
Speaker 2: on this because I have to admit I'm not feeling

527
00:27:00,440 --> 00:27:04,040
Speaker 2: too optimistic about a deal coming together before next Friday

528
00:27:04,080 --> 00:27:05,280
Speaker 2: based on what we just heard.

529
00:27:05,320 --> 00:27:09,560
Speaker 3: Adam, do you feel any differently, boy It sure seems

530
00:27:09,560 --> 00:27:10,160
Speaker 3: like we're far off.

531
00:27:10,200 --> 00:27:14,560
Speaker 15: Joe and I think that the Democrats putting forward their

532
00:27:14,600 --> 00:27:18,159
Speaker 15: list of demands, which seemed more clearly to be a

533
00:27:18,240 --> 00:27:21,000
Speaker 15: kind of a laying on a marker and not a

534
00:27:21,040 --> 00:27:24,280
Speaker 15: real expectation that they'll get all ten of those things passed.

535
00:27:24,880 --> 00:27:26,959
Speaker 15: But I think Democrats feel like they're on a bit

536
00:27:27,000 --> 00:27:29,720
Speaker 15: of an offensive on the issue that a tradition has

537
00:27:29,760 --> 00:27:32,439
Speaker 15: been doubled our party. We have not been able for

538
00:27:32,560 --> 00:27:35,760
Speaker 15: decades to be able to mount an effective push on

539
00:27:35,800 --> 00:27:38,920
Speaker 15: immigration issues. What you're seeing right now was a very

540
00:27:39,000 --> 00:27:44,119
Speaker 15: coordinated and effective response to clearly an issue that the

541
00:27:44,119 --> 00:27:49,119
Speaker 15: American people overwhelmingly support our position. Looked at NPR at

542
00:27:49,160 --> 00:27:51,560
Speaker 15: a poll today that showed sixty percent of the people

543
00:27:51,600 --> 00:27:54,639
Speaker 15: don't approve of the job I was doing. That puts

544
00:27:54,640 --> 00:27:55,679
Speaker 15: them much stronger footing too.

545
00:27:55,680 --> 00:27:57,600
Speaker 5: Actually try to get some of these demands past.

546
00:27:57,840 --> 00:28:00,199
Speaker 15: I think the White House's political interest should be to

547
00:28:00,240 --> 00:28:02,800
Speaker 15: find a resolution in the middle, get a deal, and

548
00:28:02,840 --> 00:28:03,720
Speaker 15: keep the government open.

549
00:28:04,960 --> 00:28:08,800
Speaker 2: Well, we'll see to what extent President Trump gets involved here. Rick,

550
00:28:08,920 --> 00:28:11,520
Speaker 2: is there an ask for Republicans to try to pull

551
00:28:11,600 --> 00:28:16,680
Speaker 2: Democrats closer on this, maybe involving sanctuary cities.

552
00:28:17,359 --> 00:28:19,679
Speaker 3: What's your thought after hearing from these two lawmakers.

553
00:28:20,880 --> 00:28:24,320
Speaker 6: I thought Representative Melee Talkers made a really strong case

554
00:28:24,440 --> 00:28:28,320
Speaker 6: for opening up a discussion around sanctuary cities and defined

555
00:28:28,359 --> 00:28:33,600
Speaker 6: by the fact that illeg glimmerings violated the loss are

556
00:28:33,680 --> 00:28:41,000
Speaker 6: currently incarcerated. There may be some due process issues. Immigration

557
00:28:41,080 --> 00:28:44,560
Speaker 6: courts are choked full, and so what do you do

558
00:28:44,640 --> 00:28:45,000
Speaker 6: with them?

559
00:28:45,080 --> 00:28:46,920
Speaker 3: Right and right now, there's.

560
00:28:46,720 --> 00:28:51,440
Speaker 6: Not an easy way for the immigration officers to pick

561
00:28:51,480 --> 00:28:54,200
Speaker 6: them up and either to port them or put them

562
00:28:54,200 --> 00:28:58,680
Speaker 6: in some kind of immigration incarceration. So the reality is

563
00:28:58,720 --> 00:29:01,440
Speaker 6: that is a problem. I mean, it's not that they

564
00:29:01,480 --> 00:29:04,920
Speaker 6: give sanctuary to people. It's these are the violators of

565
00:29:04,960 --> 00:29:08,959
Speaker 6: our laws who have been picked up by cities, you know,

566
00:29:09,080 --> 00:29:12,440
Speaker 6: not by eyes, not by border security, border patrol.

567
00:29:12,600 --> 00:29:15,920
Speaker 3: And so I think there's a deal to be cut there.

568
00:29:16,080 --> 00:29:18,800
Speaker 6: I just can't imagine a scenario where the American public

569
00:29:18,840 --> 00:29:23,480
Speaker 6: thinks it's a bad idea to remove immigrants who have

570
00:29:23,560 --> 00:29:24,520
Speaker 6: violated our laws.

571
00:29:24,680 --> 00:29:28,600
Speaker 3: So let's see if that's really get interesting world.

572
00:29:28,640 --> 00:29:31,200
Speaker 2: We're going to find out, and something tells me we

573
00:29:31,280 --> 00:29:33,520
Speaker 2: might be talking about this a week from today, on

574
00:29:33,640 --> 00:29:37,520
Speaker 2: the threshold of another deadline. Rick Davison, Adam Hodge, thank

575
00:29:37,560 --> 00:29:40,160
Speaker 2: you so much for spending another hour with us here

576
00:29:40,200 --> 00:29:41,040
Speaker 2: on Balance of Power.

577
00:29:41,040 --> 00:29:42,440
Speaker 3: I'm Joe Matthew and Washington.

578
00:29:42,560 --> 00:29:46,160
Speaker 2: We'll get the advice of Patrick McHenry, former Speaker pro

579
00:29:46,280 --> 00:29:48,600
Speaker 2: TEMs on his way in next only on Bloomberg.

580
00:29:48,760 --> 00:29:50,960
Speaker 3: Stay with us on Balance of Power. We'll have much

581
00:29:50,960 --> 00:29:52,160
Speaker 3: more coming up after this.

582
00:29:57,600 --> 00:30:01,080
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch

583
00:30:01,120 --> 00:30:04,160
Speaker 1: us live weekdays at noon and five pm Eastern on

584
00:30:04,280 --> 00:30:08,000
Speaker 1: Applecocklay and Android Auto with the Bloomberg Business App. Listen

585
00:30:08,040 --> 00:30:11,160
Speaker 1: on demand wherever you get your podcasts, or watch us

586
00:30:11,200 --> 00:30:13,480
Speaker 1: live on YouTube.

587
00:30:14,040 --> 00:30:15,880
Speaker 2: You know, if you want somebody to give you bad news,

588
00:30:15,880 --> 00:30:17,720
Speaker 2: it may as well be Charlie Palette, the voice of

589
00:30:17,800 --> 00:30:21,320
Speaker 2: the New York Subway. We'll take normal Melinda as well,

590
00:30:21,360 --> 00:30:23,440
Speaker 2: because we're trying to plumb the depths of this market

591
00:30:23,440 --> 00:30:25,480
Speaker 2: here and figure out exactly what's going on and maybe

592
00:30:25,480 --> 00:30:26,880
Speaker 2: if there's going to be a floor in place. When

593
00:30:26,920 --> 00:30:29,360
Speaker 2: it comes to bitcoin. We're still talking about software. How

594
00:30:29,440 --> 00:30:31,880
Speaker 2: is there anything left to sell? When it comes to software?

595
00:30:31,960 --> 00:30:36,000
Speaker 2: Microsoft is about to sink below four hundred dollars normal, Melinda.

596
00:30:36,040 --> 00:30:38,800
Speaker 2: I'm looking at Salesforce that gave up two hundred dollars

597
00:30:38,840 --> 00:30:41,760
Speaker 2: a long time ago. It's down five percent, Microsoft down three.

598
00:30:41,800 --> 00:30:44,640
Speaker 2: Everybody thinks that we're going to vibe code our way

599
00:30:44,680 --> 00:30:46,479
Speaker 2: around all these companies in the future.

600
00:30:46,520 --> 00:30:48,719
Speaker 3: But this is much bigger than software, isn't it.

601
00:30:49,080 --> 00:30:52,280
Speaker 16: Well, it's definitely bigger than software we're releasing it spreading

602
00:30:52,280 --> 00:30:55,640
Speaker 16: across the broader tech sector. We did get earnings out

603
00:30:55,680 --> 00:30:58,520
Speaker 16: of Alphabet, which people really parsing, but a lot of

604
00:30:58,560 --> 00:31:03,800
Speaker 16: the focus there concerned about too much spending on artificial intelligence.

605
00:31:04,040 --> 00:31:06,280
Speaker 16: We did see a positive report out of the company,

606
00:31:06,560 --> 00:31:09,120
Speaker 16: stellar numbers, but people are still concerned as to whether

607
00:31:09,200 --> 00:31:12,880
Speaker 16: or not these heavy, these massive investments into artificial intelligence

608
00:31:12,880 --> 00:31:14,959
Speaker 16: are actually going to pay off. And this is a

609
00:31:14,960 --> 00:31:16,600
Speaker 16: long journey that we're going to have to sit on

610
00:31:16,760 --> 00:31:19,800
Speaker 16: to actually see this come to fruition and seeing things

611
00:31:19,840 --> 00:31:22,720
Speaker 16: physically in place. But for right now, it's really just

612
00:31:22,760 --> 00:31:24,800
Speaker 16: a bet on the future. Joe and a lot of

613
00:31:24,840 --> 00:31:26,240
Speaker 16: investors are concerned about that.

614
00:31:27,320 --> 00:31:27,520
Speaker 14: Well.

615
00:31:27,520 --> 00:31:30,480
Speaker 2: It's something though, if we're all upset because Google and

616
00:31:30,480 --> 00:31:32,600
Speaker 2: the rest are going to spend too much on AI,

617
00:31:33,320 --> 00:31:34,880
Speaker 2: then out come in video is lower.

618
00:31:34,920 --> 00:31:36,360
Speaker 3: Isn't that where all the money's going?

619
00:31:37,040 --> 00:31:38,880
Speaker 16: Well in video is definitely taking it to the chin

620
00:31:38,960 --> 00:31:41,040
Speaker 16: today as well. I mean, take a look at the

621
00:31:41,160 --> 00:31:43,239
Speaker 16: mag seven s thoughts. I'm looking at an index right

622
00:31:43,280 --> 00:31:46,000
Speaker 16: now on the terminal down by about one and a

623
00:31:46,000 --> 00:31:49,280
Speaker 16: half percent on the day, so you're really seeing widespread

624
00:31:49,280 --> 00:31:51,959
Speaker 16: fears across the board. We've also been talking about memory

625
00:31:51,960 --> 00:31:55,600
Speaker 16: shortage concerns. We've been looking at Qualcom shares also lower.

626
00:31:55,800 --> 00:31:58,040
Speaker 16: So a lot of these megacap names are really taking

627
00:31:58,080 --> 00:31:59,880
Speaker 16: it to the chin as people start to figure out

628
00:31:59,840 --> 00:32:02,920
Speaker 16: whether or not they should be rotating into other sectors.

629
00:32:02,960 --> 00:32:07,920
Speaker 2: Now, yeah, right, yeah, the storage stocks have been struggling

630
00:32:08,200 --> 00:32:08,920
Speaker 2: this week as well.

631
00:32:08,920 --> 00:32:10,720
Speaker 3: I will know Broadcom has moveing higher.

632
00:32:10,480 --> 00:32:12,600
Speaker 2: Which of course is going to be getting money from

633
00:32:12,920 --> 00:32:14,440
Speaker 2: Alphabet to make TPUs.

634
00:32:14,680 --> 00:32:16,280
Speaker 3: Let's talk about crypto though, Nora.

635
00:32:16,360 --> 00:32:18,000
Speaker 2: This is a big part of the story today, and

636
00:32:18,040 --> 00:32:20,080
Speaker 2: we're going to spend some time with Patrick McHenry in

637
00:32:20,160 --> 00:32:23,080
Speaker 2: just a moment, who's very sensitive to changes in the

638
00:32:23,080 --> 00:32:25,680
Speaker 2: crypto market. Here, it's sixty five, we're going to sixty

639
00:32:25,680 --> 00:32:29,000
Speaker 2: five handle on bitcoin? Does that mean the chart's broken?

640
00:32:29,120 --> 00:32:34,240
Speaker 2: So we're kind of beyond technical support? What happens from here?

641
00:32:34,360 --> 00:32:36,560
Speaker 16: Well, I've been keeping an eye on bitcoin all day

642
00:32:36,720 --> 00:32:39,720
Speaker 16: and we're just continuing to see it fall and fall

643
00:32:39,760 --> 00:32:42,640
Speaker 16: and fall, really tumbling here, and we are seeing that

644
00:32:42,720 --> 00:32:45,640
Speaker 16: this is hitting its third straight day of declines, of course,

645
00:32:45,760 --> 00:32:49,080
Speaker 16: dropping below that key seventy thousand dollars level, now hanging

646
00:32:49,080 --> 00:32:52,320
Speaker 16: around seventy or sixty five thousand dollars, So we did

647
00:32:52,320 --> 00:32:54,840
Speaker 16: see that the coin actually lost nearly half of its

648
00:32:54,960 --> 00:32:57,480
Speaker 16: value since the record it hit just four months ago.

649
00:32:57,840 --> 00:33:00,560
Speaker 16: So clearly we are seeing retail investors and those who

650
00:33:00,560 --> 00:33:03,600
Speaker 16: are really just interested in the more speculative space really

651
00:33:03,800 --> 00:33:06,840
Speaker 16: read configuring what they think about how much of an

652
00:33:06,840 --> 00:33:09,280
Speaker 16: investment they should be putting into this coin. We've been

653
00:33:09,320 --> 00:33:12,080
Speaker 16: hearing from Michael Burry also casting doubts on the space.

654
00:33:12,240 --> 00:33:14,040
Speaker 16: So there's a lot of uncertainty right now as it

655
00:33:14,040 --> 00:33:16,320
Speaker 16: relates to bitcoin, and we're really starting to see a

656
00:33:16,360 --> 00:33:18,080
Speaker 16: lot of outflows coming out of this group.

657
00:33:19,400 --> 00:33:21,480
Speaker 2: So much for a store of value. I guess you

658
00:33:21,480 --> 00:33:24,880
Speaker 2: know there's an ETF. If everyone's upset about the etfication

659
00:33:25,040 --> 00:33:27,479
Speaker 2: of crypto or whatever we call this, Nora, there's an

660
00:33:27,480 --> 00:33:32,640
Speaker 2: ETF that's short crypto, short bitcoin b ITI. It's up

661
00:33:32,680 --> 00:33:35,280
Speaker 2: over ten percent today. There's an ETF for everything.

662
00:33:35,320 --> 00:33:37,040
Speaker 3: Beck as always, there really is.

663
00:33:38,080 --> 00:33:40,320
Speaker 2: Let me know when you get yours, Nora, Melnda, covering

664
00:33:40,320 --> 00:33:43,200
Speaker 2: the markets for US at World Headquarters in New York.

665
00:33:43,680 --> 00:33:46,360
Speaker 2: I did think today we were talking to producer James

666
00:33:46,400 --> 00:33:47,840
Speaker 2: before we got on the air. SI, boy, this is

667
00:33:47,840 --> 00:33:49,720
Speaker 2: a great day to have Patrick McHenry, I wonder what

668
00:33:49,760 --> 00:33:51,959
Speaker 2: he thinks of this. Does this color the debate around

669
00:33:52,240 --> 00:33:56,920
Speaker 2: crypto regulation in Washington? Does it cause the institutions to

670
00:33:57,040 --> 00:34:00,600
Speaker 2: back off? Looking at sixty five thousand, It was a

671
00:34:00,600 --> 00:34:03,120
Speaker 2: big deal, of course when we first reached sixty five thousand,

672
00:34:03,120 --> 00:34:04,880
Speaker 2: but this is a far cry from one hundred and

673
00:34:04,880 --> 00:34:08,439
Speaker 2: twenty thousand plus. He's a Bloomberg Politics contributor. Of course,

674
00:34:08,480 --> 00:34:11,480
Speaker 2: former Speaker pro tem used to run the Financial Services Committee.

675
00:34:11,480 --> 00:34:14,160
Speaker 2: They had some fun with Scott Bessett yesterday. It's good

676
00:34:14,160 --> 00:34:14,799
Speaker 2: to see you back.

677
00:34:16,680 --> 00:34:18,440
Speaker 5: That was lively yesterday.

678
00:34:18,120 --> 00:34:19,200
Speaker 3: No doubt.

679
00:34:19,800 --> 00:34:21,520
Speaker 2: I can only imagine as a share what do you

680
00:34:21,560 --> 00:34:23,440
Speaker 2: think when all the other members show up like this

681
00:34:23,480 --> 00:34:24,160
Speaker 2: for a fight.

682
00:34:24,040 --> 00:34:24,960
Speaker 3: Including the witness.

683
00:34:25,760 --> 00:34:28,960
Speaker 2: Tough to referee? Yeah, no, thing looks like that. It's

684
00:34:29,000 --> 00:34:32,399
Speaker 2: tough to be in this market right now. I'm looking

685
00:34:32,440 --> 00:34:35,280
Speaker 2: at the numbers. While we talked down seven thousand dollars

686
00:34:36,080 --> 00:34:40,759
Speaker 2: per coin about ten percent, we're plumbing the depths as

687
00:34:40,760 --> 00:34:44,440
Speaker 2: we say, how concerned are you about the halo effect

688
00:34:44,719 --> 00:34:46,440
Speaker 2: just vanishing over crypto?

689
00:34:46,960 --> 00:34:49,720
Speaker 17: Well, look, this is a four year cycle that crypto

690
00:34:50,080 --> 00:34:55,359
Speaker 17: is traditionally been on, and we've seen these retreats in advances.

691
00:34:56,200 --> 00:34:58,200
Speaker 17: The last time we went through this where we had

692
00:34:58,200 --> 00:35:01,799
Speaker 17: this major fallout, nothing broke of substance, and it was

693
00:35:01,920 --> 00:35:06,000
Speaker 17: around FTX, which was the breaking point, and then there's

694
00:35:06,040 --> 00:35:09,040
Speaker 17: all the fraud around that and the prison sentences. But

695
00:35:09,920 --> 00:35:14,680
Speaker 17: what remained was were the key assets here and what

696
00:35:14,840 --> 00:35:16,919
Speaker 17: came into the space where the true builders that are

697
00:35:16,960 --> 00:35:20,600
Speaker 17: doing something with crypto and the crypto rails and enabling

698
00:35:21,520 --> 00:35:25,640
Speaker 17: real work on those technological innovations. We're going to likewise

699
00:35:25,640 --> 00:35:29,760
Speaker 17: see that here AI has been the darling and crypto

700
00:35:29,800 --> 00:35:33,080
Speaker 17: has been taken second place, and that's not the normal

701
00:35:33,120 --> 00:35:37,640
Speaker 17: space for crypto. Well, what this does highlight with this

702
00:35:37,920 --> 00:35:42,600
Speaker 17: major reset and crypto coin prices is the need for

703
00:35:42,719 --> 00:35:45,759
Speaker 17: market clarity, need for clear rules of the road here

704
00:35:45,800 --> 00:35:48,040
Speaker 17: in the United States, which is stalled on Capitol Hill.

705
00:35:48,160 --> 00:35:49,440
Speaker 3: Yeah, so does.

706
00:35:49,239 --> 00:35:54,600
Speaker 2: This hasten legislation around market structure because this market's telling

707
00:35:54,680 --> 00:35:57,840
Speaker 2: us it needs it, or are there more brad Shermans

708
00:35:57,840 --> 00:36:01,880
Speaker 2: who say this is fraught with risk and the currency

709
00:36:01,880 --> 00:36:02,600
Speaker 2: of criminals.

710
00:36:03,360 --> 00:36:07,759
Speaker 17: Someone like him is unconvinced a bowl, okay, and and

711
00:36:07,840 --> 00:36:10,680
Speaker 17: so he'll still fight that fight regardless of what happens here.

712
00:36:11,480 --> 00:36:13,560
Speaker 17: But by and large, what you see on Capitol Hills

713
00:36:13,880 --> 00:36:17,120
Speaker 17: is a biparsoning consensus, right. I mean, that's the significant

714
00:36:17,160 --> 00:36:20,600
Speaker 17: thing that we've seen this Congress post election is you

715
00:36:20,680 --> 00:36:24,919
Speaker 17: have Republicans and Democrats working together on crypto legislation. It's

716
00:36:25,160 --> 00:36:28,239
Speaker 17: almost all the Republicans and then about a third to

717
00:36:28,239 --> 00:36:32,520
Speaker 17: forty percent of Democratic senators and House members or supportive

718
00:36:32,520 --> 00:36:35,320
Speaker 17: of crypto. The House bill was passed last year, the

719
00:36:35,600 --> 00:36:38,359
Speaker 17: Clarity Act. It's taken the Senate in a long time

720
00:36:38,400 --> 00:36:41,719
Speaker 17: to actually get to a markup. In the House, ad

721
00:36:41,800 --> 00:36:45,160
Speaker 17: Committee passed a bill last week on providing clarity around

722
00:36:45,200 --> 00:36:50,160
Speaker 17: CFT regulation of what is it what are decentralized commodities?

723
00:36:51,280 --> 00:36:54,600
Speaker 17: Number one and number two the banking space, which is

724
00:36:54,680 --> 00:36:57,799
Speaker 17: really where you need the work done. They stalled out

725
00:36:57,880 --> 00:37:00,640
Speaker 17: over the issue of yield on stable points, which the

726
00:37:00,719 --> 00:37:04,839
Speaker 17: banks are fighting to regain policy space that they lost

727
00:37:04,880 --> 00:37:08,800
Speaker 17: in the Genius Act, which enabled a federal regulatory regime

728
00:37:08,880 --> 00:37:14,120
Speaker 17: around stable coins. So that's held up around really one

729
00:37:14,160 --> 00:37:18,000
Speaker 17: big issue that is extraneous to market structure, the Market

730
00:37:18,000 --> 00:37:20,960
Speaker 17: Structure Bill. When you see a market reset like this,

731
00:37:21,160 --> 00:37:25,320
Speaker 17: it is urging Congress on to provide clear rules of

732
00:37:25,320 --> 00:37:27,240
Speaker 17: the road so you don't have all knock on effects

733
00:37:27,280 --> 00:37:30,080
Speaker 17: when you have a market shakeout like this really interesting.

734
00:37:31,320 --> 00:37:34,319
Speaker 2: It's something that obviously our audience is very curious about.

735
00:37:34,320 --> 00:37:36,400
Speaker 2: We're going to get another dose of news when Strategy

736
00:37:36,440 --> 00:37:39,480
Speaker 2: reports after the bell if this kind of and I

737
00:37:39,520 --> 00:37:41,440
Speaker 2: know you're not a stock analyst, I don't want to

738
00:37:41,480 --> 00:37:43,880
Speaker 2: turn you into one. If losses like this continued, is

739
00:37:43,920 --> 00:37:47,000
Speaker 2: this idea of a crypto treasury company go up and smoke?

740
00:37:47,560 --> 00:37:47,919
Speaker 5: I think.

741
00:37:48,640 --> 00:37:51,560
Speaker 17: I think when the market was looking at these six

742
00:37:51,600 --> 00:37:56,239
Speaker 17: months ago and not even a year ago, there's a

743
00:37:56,280 --> 00:37:59,759
Speaker 17: lot of skepticism around whether or not that if there's

744
00:37:59,800 --> 00:38:02,759
Speaker 17: a price reset, how many of these things break, how

745
00:38:02,800 --> 00:38:06,960
Speaker 17: the how many of these things are non functional business entities.

746
00:38:07,320 --> 00:38:09,239
Speaker 17: I think we're going to see that pretty quickly in

747
00:38:09,280 --> 00:38:12,040
Speaker 17: the shakeout here. I think it's an obvious thing of

748
00:38:12,080 --> 00:38:17,240
Speaker 17: a financial innovation that was short run and duration because

749
00:38:17,320 --> 00:38:19,759
Speaker 17: you didn't because of a regulatory a lack of a

750
00:38:19,760 --> 00:38:23,400
Speaker 17: regulatory change. So if Congress comes in and says, if

751
00:38:23,440 --> 00:38:27,240
Speaker 17: you are a tradition a participant, a traditional asset holder,

752
00:38:28,080 --> 00:38:32,080
Speaker 17: if you're a stockbroker for an average everyday retail investor,

753
00:38:32,480 --> 00:38:35,719
Speaker 17: you can go purchase these coins in a normative way

754
00:38:36,560 --> 00:38:39,640
Speaker 17: under a clear set of rules, When you have that,

755
00:38:39,760 --> 00:38:44,520
Speaker 17: you don't need a secondary or third party holding those

756
00:38:44,520 --> 00:38:48,080
Speaker 17: assets for you in a corporate rep So these dats,

757
00:38:48,360 --> 00:38:52,320
Speaker 17: uh we're short duration vehicles. I think that that'll is

758
00:38:52,360 --> 00:38:55,680
Speaker 17: what will shake out for most of them, Uh, really quickly,

759
00:38:56,200 --> 00:38:58,239
Speaker 17: much much faster than I think anyone anticipated.

760
00:38:58,239 --> 00:39:00,800
Speaker 3: Isn't that something We've got some breaking news?

761
00:39:01,000 --> 00:39:03,799
Speaker 2: Congressman, I just want to mention the President on truth

762
00:39:03,840 --> 00:39:06,920
Speaker 2: social he's posting about a new nuclear deal with Russia.

763
00:39:07,000 --> 00:39:08,359
Speaker 3: This is happening before our eyes.

764
00:39:08,400 --> 00:39:12,000
Speaker 2: Should work on a new nuclear treaty, not extend new Start,

765
00:39:12,280 --> 00:39:14,480
Speaker 2: He says, we should have our nuclear experts work on

766
00:39:14,520 --> 00:39:17,360
Speaker 2: a new deal. This is just breaking right now. President

767
00:39:17,400 --> 00:39:20,600
Speaker 2: Trump says the US should work on a new nuclear

768
00:39:20,719 --> 00:39:25,440
Speaker 2: pact with Russia, saying that I completely rebuilt military in

769
00:39:25,520 --> 00:39:28,680
Speaker 2: my first term. He says, I've stopped nuclear wars from

770
00:39:28,680 --> 00:39:31,320
Speaker 2: breaking out across the world between Pakistan and India, or

771
00:39:31,360 --> 00:39:34,000
Speaker 2: on in Israel, Russia, Ukraine. Rather than extend new Start,

772
00:39:34,760 --> 00:39:36,839
Speaker 2: a name he apparently does not like, we should have

773
00:39:36,960 --> 00:39:39,840
Speaker 2: our nuclear experts work on a new, improved, modernized treaty.

774
00:39:39,880 --> 00:39:42,320
Speaker 3: Is that something that Congress would support?

775
00:39:43,239 --> 00:39:47,360
Speaker 17: Yes, I think we have an addressed nuclear disarmament in

776
00:39:48,440 --> 00:39:50,200
Speaker 17: over a generation here in the United States.

777
00:39:50,239 --> 00:39:51,640
Speaker 5: I think it's worthwhile endeavor.

778
00:39:51,880 --> 00:39:56,600
Speaker 17: I think the complexity of this administration's foreign policy is

779
00:39:56,640 --> 00:40:00,960
Speaker 17: not well understood by the market. Everything is interconnected Russia,

780
00:40:01,080 --> 00:40:07,000
Speaker 17: the Middle of East, China, Russia, Ukraine, Middle East, China, Canada,

781
00:40:07,400 --> 00:40:13,120
Speaker 17: all the trade conversations, all the foreign policy and Department

782
00:40:13,120 --> 00:40:17,600
Speaker 17: of War actions, They're all connected in the President's mind

783
00:40:17,680 --> 00:40:20,640
Speaker 17: in the president's advisor's minds. That they have a chessboard

784
00:40:20,680 --> 00:40:22,560
Speaker 17: that they're looking at in real time.

785
00:40:22,680 --> 00:40:23,160
Speaker 3: Yeah.

786
00:40:23,239 --> 00:40:24,640
Speaker 5: I think this is just an example of it.

787
00:40:24,760 --> 00:40:29,160
Speaker 17: Unexpected today, but a significant sign and hopefully a signed

788
00:40:29,200 --> 00:40:29,640
Speaker 17: for the good.

789
00:40:30,400 --> 00:40:33,320
Speaker 2: I don't know if it brings progress in talks with Ukraine,

790
00:40:33,400 --> 00:40:35,840
Speaker 2: but this has been interesting. I need to ask you,

791
00:40:35,880 --> 00:40:38,720
Speaker 2: with our remaining a couple of minutes here about Department

792
00:40:38,760 --> 00:40:41,720
Speaker 2: of Homeland Security. You've seen the new list of demands.

793
00:40:41,760 --> 00:40:44,239
Speaker 2: I have them here. There are ten of them. No

794
00:40:44,440 --> 00:40:47,200
Speaker 2: masks were told as a non starter by any number

795
00:40:47,239 --> 00:40:51,840
Speaker 2: of Republicans in the Senate this week targeted enforcement, protecting

796
00:40:51,880 --> 00:40:55,600
Speaker 2: sensitive locations, requiring ID Could these end up in legislation?

797
00:40:56,680 --> 00:40:58,800
Speaker 2: Are you and I talking on the verge of another

798
00:40:58,800 --> 00:40:59,640
Speaker 2: deadline next week?

799
00:41:00,120 --> 00:41:03,040
Speaker 17: We're talking on the version of a type deadline that

800
00:41:03,760 --> 00:41:05,080
Speaker 17: is likely to fail.

801
00:41:06,840 --> 00:41:07,960
Speaker 5: With a two week deadline.

802
00:41:08,080 --> 00:41:11,759
Speaker 17: My original thought about this short term funding mechanism is

803
00:41:11,840 --> 00:41:14,200
Speaker 17: they are headed deal. When you have a two week

804
00:41:14,239 --> 00:41:17,200
Speaker 17: extension of funding and it takes a week for Congress

805
00:41:17,239 --> 00:41:19,600
Speaker 17: to actually produce that funding, you need to have the

806
00:41:19,640 --> 00:41:20,120
Speaker 17: deal done.

807
00:41:21,080 --> 00:41:23,040
Speaker 2: That's why now said it needed to be done by now.

808
00:41:23,080 --> 00:41:26,040
Speaker 2: Right when we talked a week ago for this to happen,

809
00:41:26,040 --> 00:41:26,920
Speaker 2: it would be today.

810
00:41:26,760 --> 00:41:29,840
Speaker 17: Basis, basically before they leave town for the week for

811
00:41:29,920 --> 00:41:30,320
Speaker 17: the weekend.

812
00:41:30,560 --> 00:41:31,440
Speaker 5: That's not going to happen.

813
00:41:32,040 --> 00:41:34,840
Speaker 17: So what we're looking at is another extension of homeland

814
00:41:34,840 --> 00:41:37,520
Speaker 17: security funding, a continued resolution. You have a list of

815
00:41:37,560 --> 00:41:40,680
Speaker 17: demands from the two Democratic leaders on Capitol Hill. If

816
00:41:41,520 --> 00:41:44,799
Speaker 17: that's a list to negotiate from, that is different than

817
00:41:44,800 --> 00:41:47,600
Speaker 17: a list of demands if they're withholding their votes unless

818
00:41:47,600 --> 00:41:52,040
Speaker 17: they get all the items here neatly ten because that's

819
00:41:52,080 --> 00:41:54,319
Speaker 17: where we are in our politics, right. Could be a

820
00:41:54,320 --> 00:41:57,040
Speaker 17: list of seven or eight or eleven, had to be ten.

821
00:41:57,920 --> 00:42:00,360
Speaker 17: So if this is a list of demands all have

822
00:42:00,440 --> 00:42:02,919
Speaker 17: to be met, we're going to have a shutdown. If

823
00:42:02,920 --> 00:42:06,839
Speaker 17: this is if they're reasonable enough in their assumption here

824
00:42:07,239 --> 00:42:12,000
Speaker 17: with some pledges by the White House of and Holman

825
00:42:12,880 --> 00:42:14,520
Speaker 17: on what's going to happen in Minneapolis.

826
00:42:14,560 --> 00:42:15,080
Speaker 5: I think you can.

827
00:42:15,320 --> 00:42:17,759
Speaker 17: You can get a deal done, but probably not by

828
00:42:18,360 --> 00:42:19,600
Speaker 17: Thursday or Friday of next week.

829
00:42:19,640 --> 00:42:22,120
Speaker 2: When you hear John Thune suggesting that he might be

830
00:42:22,160 --> 00:42:25,160
Speaker 2: open to a year long cr for DHS, does that

831
00:42:25,200 --> 00:42:25,920
Speaker 2: make you feel like.

832
00:42:26,640 --> 00:42:28,640
Speaker 17: Well, it makes me feel like we've gone back in time,

833
00:42:29,480 --> 00:42:33,399
Speaker 17: because when President Obama had his approach to immigration, which

834
00:42:33,480 --> 00:42:36,359
Speaker 17: was DACA, Republicans in the House said, we don't want

835
00:42:36,400 --> 00:42:37,360
Speaker 17: to fund DACA.

836
00:42:37,480 --> 00:42:39,600
Speaker 5: We don't want to fund your immigration policy.

837
00:42:39,920 --> 00:42:42,680
Speaker 17: So we funded all of government except for the Department

838
00:42:42,680 --> 00:42:45,680
Speaker 17: of Homeland Security, and it was called the cr Omnibus,

839
00:42:45,719 --> 00:42:48,960
Speaker 17: the Cromnibus, taking you it's.

840
00:42:48,800 --> 00:42:51,920
Speaker 3: A way back, Yes, So it happens.

841
00:42:51,960 --> 00:42:53,280
Speaker 5: We are coming back around.

842
00:42:53,440 --> 00:42:55,360
Speaker 17: And now it's the left saying they don't want the

843
00:42:55,480 --> 00:43:00,400
Speaker 17: rights immigration policy and nothing is new again. So this

844
00:43:00,520 --> 00:43:04,920
Speaker 17: read my favorite quote about our politics and popular culture

845
00:43:04,960 --> 00:43:07,319
Speaker 17: from how I was growing up. It was same as

846
00:43:07,320 --> 00:43:10,319
Speaker 17: it ever was right and it is true in this

847
00:43:10,440 --> 00:43:12,920
Speaker 17: atmosphere there will be deal making. I don't think the

848
00:43:12,960 --> 00:43:15,960
Speaker 17: Democrats want to own the shutdown of all the Department

849
00:43:16,239 --> 00:43:19,200
Speaker 17: Homeland Security measures right, that would be a huge political

850
00:43:19,239 --> 00:43:20,040
Speaker 17: failure on their part.

851
00:43:20,120 --> 00:43:21,600
Speaker 2: I thought James was going to come in with the

852
00:43:21,640 --> 00:43:23,480
Speaker 2: talking heads. That would have been so cool if that

853
00:43:23,600 --> 00:43:26,279
Speaker 2: happened the crump did you come up with? Prominent bus back?

854
00:43:26,440 --> 00:43:26,840
Speaker 9: Is not me?

855
00:43:27,040 --> 00:43:30,400
Speaker 3: Wow? That's wait. Just google it you'll have something to

856
00:43:30,480 --> 00:43:31,239
Speaker 3: laugh about later.

857
00:43:31,520 --> 00:43:35,520
Speaker 2: Patrick McHenry, of course, Bloomberg Politics contributor and a former

858
00:43:35,680 --> 00:43:36,359
Speaker 2: Speaker pro tem.

859
00:43:36,440 --> 00:43:37,560
Speaker 3: He knows what he's talking about.

860
00:43:37,560 --> 00:43:39,600
Speaker 2: So how about we all meet back here this time

861
00:43:39,640 --> 00:43:41,640
Speaker 2: next week and see where we are. I'm Joe Matthew.

862
00:43:41,680 --> 00:43:47,360
Speaker 2: This is Bloomberg. Thanks for listening to the Balance of

863
00:43:47,400 --> 00:43:50,920
Speaker 2: Power podcast. Make sure to subscribe if you haven't already,

864
00:43:50,960 --> 00:43:54,279
Speaker 2: at Apple, Spotify, or wherever you get your podcasts, and

865
00:43:54,320 --> 00:43:56,959
Speaker 2: you can find us live every weekday from Washington, DC

866
00:43:57,080 --> 00:44:00,240
Speaker 2: at New Time Eastern at Bloomberg dot com.