WEBVTT - Surveillance: Russia Sanctions with Walsh 0:00:05.120 --> 0:00:09.200 Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keene along 0:00:09.240 --> 0:00:13.080 with Jonathan Ferroll and Lisa Brownwitz jay Leie. We bring 0:00:13.119 --> 0:00:17.159 you insight from the best and economics, finance, investment and 0:00:17.280 --> 0:00:23.280 international relations. Find Bloomberg Surveillance and Apple Podcast SoundCloud, Bloomberg 0:00:23.360 --> 0:00:29.720 dot com and of course on the Bloomberg Termament. And 0:00:29.760 --> 0:00:34.000 now in Washington and with our John Farrell, the Secretary 0:00:34.080 --> 0:00:36.159 of Labor, it's now I'm pleased to say on the 0:00:36.159 --> 0:00:39.839 payrolls report on TV on radio. It's Marty Wolves, the 0:00:39.880 --> 0:00:42.839 U S Secretary of Labor. Mr Secretary, it's great to 0:00:42.840 --> 0:00:44.400 catch out with you, sir. I cannot think of the 0:00:44.479 --> 0:00:49.520 last payrolls report that got this little attention pay rolls 0:00:49.560 --> 0:00:51.960 at six and seventy eight, because we're focused on everything 0:00:52.000 --> 0:00:54.360 now secretly Wolves, your take first of all, and then 0:00:54.400 --> 0:00:57.920 we need to get to the much, much bigger issues worldwide. Yeah, 0:00:57.960 --> 0:01:00.600 I know, you know, a good, solid report, good briade, 0:01:00.600 --> 0:01:04.440 base gains and all sectors pretty happy with that report. 0:01:04.880 --> 0:01:07.959 Clearly we have more work to do. You're absolutely right. Uh, 0:01:08.000 --> 0:01:09.959 you know, my heart and prayers go out with the 0:01:09.959 --> 0:01:12.280 people of Ukraine. That that's kind of front and center 0:01:12.319 --> 0:01:15.400 for everybody, uh in the world. The world is certainly 0:01:15.600 --> 0:01:18.840 united behind Ukraine, and uh, you know, hopefully we can 0:01:18.840 --> 0:01:21.800 get back to Hopefully we can get through Ukrainian people 0:01:21.840 --> 0:01:24.120 can get through the challenges they have, and we can 0:01:24.160 --> 0:01:27.080 go back to talking about the economy again. I would 0:01:27.160 --> 0:01:30.360 much prefer to be taking taking strong questions from you 0:01:30.440 --> 0:01:33.760 today about the economy and Ukraine people having peace and 0:01:33.800 --> 0:01:36.759 freedom today. Secondary Welsh, I agree with you. I think 0:01:36.760 --> 0:01:38.840 we all do. Let's get back to those days as 0:01:38.840 --> 0:01:40.720 soon as possible. Right now, as you know that we've 0:01:40.720 --> 0:01:43.560 got to talk about Russia. Microsoft moments ago, in the 0:01:43.600 --> 0:01:46.039 last thirty minutes made the decision to suspend new sounds 0:01:46.040 --> 0:01:48.920 of products and services in Russia. Many companies are doing 0:01:48.920 --> 0:01:51.400 the same thing, whether they need to because of sanctions 0:01:51.480 --> 0:01:53.160 or they choose to because they feel like they have 0:01:53.160 --> 0:01:58.240 an obligation. Do you think so? For you as Secretary 0:01:58.240 --> 0:02:01.160 of Labor and for the administration as well, do American 0:02:01.160 --> 0:02:04.440 employers have a moral obligation to pull back from doing 0:02:04.480 --> 0:02:07.760 business with Russia. I think we have to do whatever 0:02:07.760 --> 0:02:09.880 we can in as many places we can to support 0:02:09.880 --> 0:02:12.400 the Ukrainian people. Uh. You know, the President said it 0:02:12.520 --> 0:02:14.200 at the State of the Union the other night from 0:02:14.200 --> 0:02:16.079 the stage. I think a lot of countries and a 0:02:16.160 --> 0:02:18.600 lot of companies are doing what they need to do. 0:02:18.720 --> 0:02:20.560 I think that as we continue to move as the 0:02:20.840 --> 0:02:23.919 as the conflict continues to move forward, I think that 0:02:23.960 --> 0:02:27.000 there will be a lot more companies in America, and 0:02:27.040 --> 0:02:29.160 not just America, around the world will will be taking 0:02:29.200 --> 0:02:33.200 steps like this against Russia. The refiners in America also 0:02:33.320 --> 0:02:36.040 not touching Russian crew as well. That choosing to pull 0:02:36.080 --> 0:02:39.800 back from that, Secretary Walch, is that a good thing? Yeah? Well, 0:02:39.800 --> 0:02:41.600 I think I think you know, as far as the conversations, 0:02:41.600 --> 0:02:44.200 what they're gonna be many conversations. I know that here 0:02:44.240 --> 0:02:47.080 in the United States, Speaker Pelosi, UH, send a mansion. 0:02:47.280 --> 0:02:50.440 Senator Makowski and some other folks you're asking for that, uh. 0:02:50.639 --> 0:02:53.560 And and I'm sure that U the President in the 0:02:53.560 --> 0:02:56.080 White House, we're evaluating the different situations. But again, I 0:02:56.080 --> 0:02:58.520 think that the whole world is going to continue to 0:02:58.280 --> 0:03:00.880 to put sanctions on Russia as we move forward here. 0:03:02.160 --> 0:03:04.960 The pictures on the pictures that we're seeing broadcast from 0:03:05.080 --> 0:03:08.200 Ukraine are horrible and bring you when you go after 0:03:08.600 --> 0:03:10.960 buildings with all the people on the schools it's just 0:03:11.040 --> 0:03:13.480 uncalled for. So when refinance pulled back, I guess what 0:03:13.480 --> 0:03:15.720 I'm trying to work out secontarly, Welsh, is that you've 0:03:15.720 --> 0:03:18.280 tried for an energy carve out. A lot of people 0:03:18.280 --> 0:03:19.880 still don't want to touch crude even if there is 0:03:19.919 --> 0:03:22.400 a carve out. I want to understand the message the 0:03:22.440 --> 0:03:24.959 administration is sending right now. Do you want refiners to 0:03:25.000 --> 0:03:27.000 buy that crude or do you want them to step 0:03:27.040 --> 0:03:28.880 back from it? Is that welcome development even though the 0:03:28.880 --> 0:03:31.640 sanctions aren't there. Well, again, I'm not in a position 0:03:31.680 --> 0:03:33.200 to be able to speak on that right now. I 0:03:33.280 --> 0:03:36.160 know that, as the President had laid out, the sanctions 0:03:36.240 --> 0:03:39.600 last week are actually over the last ten days. Uh. 0:03:39.720 --> 0:03:42.160 He's been very thoughtful in doing them, working across the 0:03:42.200 --> 0:03:44.280 globe and doing them. And I think those I'm sure 0:03:44.280 --> 0:03:47.240 those conversations are happening right now with world leaders. There's 0:03:47.240 --> 0:03:49.360 a conversation that hasn't happened apparently, and I wonder if 0:03:49.360 --> 0:03:52.320 it has happened subsequently, I couldn't get this information from 0:03:52.360 --> 0:03:54.640 the Treasury Department in the last hour, so allow me 0:03:54.680 --> 0:03:56.760 to put this question to you. This came from the 0:03:56.760 --> 0:04:01.200 Devon Energy CEO, big employer here in America, Crude Explorer, 0:04:01.960 --> 0:04:04.280 this is what they said to us this week. Secondary 0:04:04.280 --> 0:04:06.960 Welsh quote. I'm a little mystified that there hasn't been 0:04:07.000 --> 0:04:10.120 some dialogue. If they were to reach out you, the 0:04:10.160 --> 0:04:14.360 administration to them and maybe be a little bit more collaborative, 0:04:14.520 --> 0:04:17.760 it might provide some cover cover from investors who might 0:04:17.760 --> 0:04:21.440 be disappointed their boosting output. Have you reached out to 0:04:21.520 --> 0:04:26.440 any employers in the old patch to boost production to 0:04:26.520 --> 0:04:28.719 this point, I'm not aware of any any conversation, but 0:04:28.760 --> 0:04:31.240 I'm sure that their conversation is going on. Again. I 0:04:31.279 --> 0:04:33.279 have not been part of those have not been party 0:04:33.279 --> 0:04:36.359 to those conversations. Uh. If asked and when asked and 0:04:36.360 --> 0:04:38.360 when told to you by by the President, I will 0:04:38.400 --> 0:04:40.640 absolutely be having those conversations. You have to wait to 0:04:40.680 --> 0:04:44.160 be told to to have that conversation. Well, certainly this 0:04:44.240 --> 0:04:46.800 is a this is a very coordinated effort. When you 0:04:46.880 --> 0:04:49.000 look at what what what what's been going on here 0:04:49.080 --> 0:04:51.600 with the with the with the powers of the countries 0:04:51.640 --> 0:04:54.920 across the globe working collectively together, we've never seen I 0:04:54.920 --> 0:04:57.560 shouldn't say never, I mean having the strength of NATO 0:04:57.839 --> 0:05:02.279 seems so close together, really amazing and working collectively together 0:05:02.480 --> 0:05:04.800 so again, I think there's been there's been a process 0:05:04.800 --> 0:05:07.279 here as we move forward. Crewed right now, w t 0:05:07.360 --> 0:05:10.240 I at one TOURVE eighty seven. You know as well 0:05:10.279 --> 0:05:13.240 as I know that wages haven't been keeping up with inflation. 0:05:13.880 --> 0:05:15.320 Is there anything you can do in the short term. 0:05:15.320 --> 0:05:17.120 When we had from the President earlier this week in 0:05:17.120 --> 0:05:18.800 the State of the Union, there were some big long 0:05:18.920 --> 0:05:21.880 term goals, long term investments that he wanted to make 0:05:21.880 --> 0:05:24.560 to build out the productive capacity of the economy. Is 0:05:24.560 --> 0:05:25.920 the only thing we can do in the short term 0:05:25.920 --> 0:05:28.760 here secondary walls, I think, I think if if you're 0:05:28.760 --> 0:05:30.720 trying around inflation, I think what's happening here is I mean, 0:05:30.760 --> 0:05:34.760 we're in the midst of a worldwide pandemic. Certainly that's 0:05:34.800 --> 0:05:37.440 one we had the midst of dealing with supply chain issues. 0:05:37.440 --> 0:05:40.400 Now now we have a major conflict in the world 0:05:40.920 --> 0:05:43.000 that that that we're all eyes of the world are 0:05:43.040 --> 0:05:45.560 on the Ukrainian people in Ukraine. And I think that 0:05:45.640 --> 0:05:48.440 as we move forward here in the question earlier, as 0:05:48.480 --> 0:05:51.640 oil supply, as oil supply gets cut back from Russia, 0:05:51.680 --> 0:05:54.520 if that's what ultimately happens, we're going to see increasing 0:05:54.560 --> 0:05:56.719 gas prices. And I think that there's a point here 0:05:56.760 --> 0:05:58.479 that we have to we have to just continue to 0:05:58.480 --> 0:06:01.080 move forward. The President has been very clear on on 0:06:01.160 --> 0:06:03.440 bringing down inflation. He talked about it at the State 0:06:03.440 --> 0:06:07.040 of the Union. But we're living in very interesting dynamic, 0:06:07.200 --> 0:06:09.880 dynamic in times that are happening here. So again, there's 0:06:09.920 --> 0:06:12.479 lots of conversations and lots of actions that will be 0:06:12.520 --> 0:06:14.560 taken over the next weeks and months. You're in a 0:06:14.560 --> 0:06:16.480 difficult spot now, and understand that because you need to 0:06:16.480 --> 0:06:18.400 try and stand your lane and not get ahead of 0:06:18.400 --> 0:06:20.800 what other people haven't said yet. But have you spoken 0:06:20.800 --> 0:06:24.279 to the administration this morning and your message following the 0:06:24.320 --> 0:06:27.120 overnight events which were shocking for so many people. I 0:06:27.200 --> 0:06:30.159 haven't heard anyone yet called that an escalation from the 0:06:30.240 --> 0:06:33.400 US administration. Secondly, Wolves, do you believe the events of 0:06:33.480 --> 0:06:36.640 last night were an escalation? Well, I'm sure the President's 0:06:36.640 --> 0:06:39.320 going to address that when he speaks later today. When 0:06:39.360 --> 0:06:41.880 can we hear from him? I don't. I think he 0:06:42.120 --> 0:06:44.320 generally has a not too far from now, a couple 0:06:44.320 --> 0:06:47.080 of hours from now, I think he'll addressed he addresses 0:06:47.120 --> 0:06:50.000 that the country on the issue of of of the jobs, 0:06:50.040 --> 0:06:53.159 but certainly the biggest issue of of the day is Ukraine. 0:06:53.200 --> 0:06:55.719 The biggest issue of our moment is Ukraine. Well, I 0:06:55.760 --> 0:06:57.720 look forward to him from him a little bit later 0:06:57.760 --> 0:07:00.160 and understand. Secondly, Wolves, there's only so much you can say, sir, 0:07:00.839 --> 0:07:02.440 and it's only so much you can say this morning 0:07:02.480 --> 0:07:03.720 as well. Thank you for paying with us, and I 0:07:03.720 --> 0:07:05.240 think we're both on the same page. When we can 0:07:05.240 --> 0:07:08.080 just talk about payrolls for ten minutes. I can't wait 0:07:08.120 --> 0:07:17.960 for that moment, sir. Secondly, well, Stan, thank you our 0:07:18.040 --> 0:07:22.240 conversation of the day on this term sanctions. Right now 0:07:22.360 --> 0:07:25.480 in Ukraine, there is a teacher and a nurse and 0:07:25.560 --> 0:07:28.320 they are leaving Ukraine and maybe they've got an eighteen 0:07:28.360 --> 0:07:31.280 month old with them. It was not war in Nigeria, 0:07:31.400 --> 0:07:35.360 but Wally Adyamo came to California as an eighteen month 0:07:35.400 --> 0:07:38.000 old with his parents. He's done better than good out 0:07:38.000 --> 0:07:41.480 of Yale law, terrific in the Democratic Party with different 0:07:41.520 --> 0:07:46.800 public service positions in the Deputy Treasury Secretary Jones this morning. 0:07:47.000 --> 0:07:51.480 What will happen on sanctions sir this weekend? What I 0:07:51.520 --> 0:07:54.120 can say, um, good morning, thanks for having me, is 0:07:54.160 --> 0:07:58.960 that if President Putin continues to escalate his war in Ukraine, 0:07:59.240 --> 0:08:01.680 we will continue you to increase the sanctions that we've 0:08:01.720 --> 0:08:04.000 put on Russia. It's important to see what's happening in 0:08:04.000 --> 0:08:06.800 the Russian economy today because the sanctions we've put on, 0:08:06.880 --> 0:08:10.800 inflation is likely North Russian markets have been shut down 0:08:10.800 --> 0:08:13.240 for days, and just earlier they announced they're going to 0:08:13.280 --> 0:08:16.200 shut them down for more days, which is the longest 0:08:16.200 --> 0:08:19.480 shutdown they've had since at least when they defaulted on 0:08:19.520 --> 0:08:22.440 their debt. And in addition to that, any investor or 0:08:22.440 --> 0:08:24.440 market princison that I've talked to over the last week, 0:08:24.680 --> 0:08:26.440 what they're trying to do is take their money out 0:08:26.440 --> 0:08:29.320 of Russia, which means that the Russian economy is collapsing. 0:08:29.640 --> 0:08:32.439 You've had experience with that with Mr Finkett Black Rock, 0:08:32.559 --> 0:08:36.079 so you've served both spheres of government and finance. From 0:08:36.120 --> 0:08:40.360 where you sit. Can the Biden administration at unilaterally or 0:08:40.440 --> 0:08:43.959 we must we wait for our allies. The thing that 0:08:44.000 --> 0:08:46.040 the President has discovered is that we are far more 0:08:46.080 --> 0:08:48.800 powerful working with our allies. And that's exactly what we've 0:08:48.800 --> 0:08:53.080 seen here, building alliance that doesn't only include our European partners, 0:08:53.120 --> 0:08:56.320 but also partners and allies in Asia, which has cut 0:08:56.320 --> 0:09:00.080 off Russia from access to the international financial system, the 0:09:00.080 --> 0:09:03.360 global economy. Mr Secretary, your words just moments ago. If 0:09:03.480 --> 0:09:06.200 Russia increases the war in Ukraine, we increase the sanctions 0:09:06.200 --> 0:09:11.880 in Russia. Mrs Secretary, was last night an escalation? So 0:09:11.920 --> 0:09:14.240 I'll leave that to the judgment as we look at 0:09:14.280 --> 0:09:16.400 what happened last night. But our goal is to make 0:09:16.400 --> 0:09:19.079 sure that we continue to increase sanctions as they increase 0:09:19.120 --> 0:09:22.200 their escalation. We took sanctions actions yesterday, were prepared to 0:09:22.200 --> 0:09:24.800 take additional actions to not only cut off the Russian 0:09:24.800 --> 0:09:27.720 economy but cut off Russian elites who are helping support 0:09:27.840 --> 0:09:29.880 President Putin, and we're going to continue to do that 0:09:30.080 --> 0:09:32.680 as long as President Putin chooses us to continue his 0:09:32.760 --> 0:09:35.640 work choice in Ukraine. You'll leave it for another department 0:09:35.640 --> 0:09:37.880 to decide whether that was an escalation. Then you have 0:09:37.960 --> 0:09:40.240 to enforce the sanctions that the White House decides. So 0:09:40.480 --> 0:09:43.120 Mr Secretary, just help us understand how the sausage is made. 0:09:43.640 --> 0:09:46.640 Do you do the groundwork ahead of sanctions being announced 0:09:46.720 --> 0:09:49.040 or do you have to do the groundwork after they've 0:09:49.080 --> 0:09:51.000 been announced. Can you help me understand what order it 0:09:51.040 --> 0:09:52.240 comes through? Do you have to do a load of 0:09:52.280 --> 0:09:54.839 studies now to be prepared to execute on something that 0:09:54.920 --> 0:09:56.760 might be announced down on the road, or do you 0:09:56.760 --> 0:10:00.839 wait for it to be announced. So in November, when 0:10:00.880 --> 0:10:03.920 we started to see Russian troops gathering outside of Ukraine, 0:10:04.080 --> 0:10:07.480 the President ordered Secretary yell And to start planning for 0:10:07.640 --> 0:10:10.680 the imposition of sanctions if Russia were to invade. He 0:10:10.760 --> 0:10:13.040 gave one order, which was to make sure that anything 0:10:13.080 --> 0:10:16.240 we did had a maximum impact on Russia and mitigated 0:10:16.280 --> 0:10:18.800 the impact on the United States and on our allies. 0:10:18.840 --> 0:10:21.600 And that's exactly what we've done, working closely with Europe 0:10:21.600 --> 0:10:23.560 and our allies in Asia, to make sure we design 0:10:23.880 --> 0:10:26.720 sanctions that we could use if Russia invaded. And we 0:10:26.760 --> 0:10:29.040 have a number of things that we've already deployed, the 0:10:29.160 --> 0:10:30.920 number of things that we've planned for over the course 0:10:30.960 --> 0:10:33.360 the last few months to worry to deploy if Russia 0:10:33.400 --> 0:10:36.400 continued invasion of Let's talk about the stuff you planned 0:10:36.440 --> 0:10:38.640 for and haven't deployed. Have you got a plan for 0:10:38.760 --> 0:10:41.240 energy sanctions if you needed to deploy it? Has that 0:10:41.280 --> 0:10:45.240 plan been made at Treasury? So going back to what 0:10:45.280 --> 0:10:47.000 the President gave us as an order, make sure that 0:10:47.040 --> 0:10:49.760 we maximized the pan on Russia and limit the cost 0:10:49.840 --> 0:10:52.320 to the American people are our allies. What we decided 0:10:52.320 --> 0:10:54.280 to do with regard to energy is make sure that 0:10:54.320 --> 0:10:58.280 we do nothing to increase the price of energy um immediately. 0:10:58.400 --> 0:11:02.040 So we're we've created a general licensing that energy can 0:11:02.080 --> 0:11:05.880 be sold through pipelines by boat immediately. But what we're 0:11:05.880 --> 0:11:08.640 doing is that over the long term, we're degrading Russia's 0:11:08.800 --> 0:11:12.120 energy production capabilities so they can pump less energy from 0:11:12.120 --> 0:11:14.000 the ground in order to cut off their source of 0:11:14.000 --> 0:11:16.880 revenue overtime. So I understand what's being announced. I'm trying 0:11:16.880 --> 0:11:19.679 to understand whether you have a plan to deploy if 0:11:19.679 --> 0:11:22.680 you need to announce energy sanctions speak of Alosi says 0:11:22.720 --> 0:11:25.240 band the oil band, Russian oil. I want to understand 0:11:25.240 --> 0:11:28.320 whether you've done the work at Treasury to execute that plan, 0:11:28.360 --> 0:11:30.559 if it needs to be executed. Does that plan exist 0:11:31.040 --> 0:11:33.880 at Treasury? So the plan that we have now is 0:11:33.880 --> 0:11:35.559 to do everything we can to make sure the market 0:11:35.600 --> 0:11:38.559 remains well supplied. Now, what we have plans to do 0:11:38.600 --> 0:11:41.320 is to grade their ability to produce energy into the future, 0:11:41.559 --> 0:11:44.040 because the thing that we know is that if we 0:11:44.120 --> 0:11:47.320 do something immediately that increases the cost of energy, that 0:11:47.360 --> 0:11:49.280 will be a cost on the American people, and it 0:11:49.320 --> 0:11:51.360 will be money that goes into the pocket of President 0:11:51.360 --> 0:11:54.400 Putin if the cost of energy increases around the world. 0:11:54.559 --> 0:11:57.040 So instead of increasing costs now, our goal is to 0:11:57.080 --> 0:11:59.559 make sure that we degrade their ability to produce oil 0:11:59.600 --> 0:12:02.680 overtime time, which will further starve them of the resources 0:12:02.880 --> 0:12:05.600 they need to to conduct the kind of wars they 0:12:05.600 --> 0:12:09.040 are doing today in Ukraine. Mr Secretary, Does that mean 0:12:09.120 --> 0:12:11.320 that the sanctions that we've put out there so far 0:12:11.920 --> 0:12:13.880 are all of the sanctions that we can put out 0:12:13.920 --> 0:12:16.480 there at this time, because what you're talking about will 0:12:16.480 --> 0:12:19.760 take time, So even if there's an escalation, there cannot 0:12:19.760 --> 0:12:23.200 be the sanctions on oil without the having a conflict 0:12:23.240 --> 0:12:26.640 with this goal. No, that's not true. We have other 0:12:26.679 --> 0:12:30.960 sanctions options outside of the immediate sanctions on the energy industry. 0:12:31.160 --> 0:12:33.360 What we have sanctions on the financial industry that we 0:12:33.400 --> 0:12:37.080 can continue to deploy, Sanctions on their defense industry we 0:12:37.080 --> 0:12:39.199 can continue to deploy. We have a number of options 0:12:39.240 --> 0:12:41.200 that we can do that will allow us to meet 0:12:41.240 --> 0:12:44.320 the President's objective, which is maximizing the cost on Russia 0:12:44.440 --> 0:12:47.160 and reducing the costs in the United States and on Europe. 0:12:47.240 --> 0:12:50.240 Our goals and make sure the energy market remains well supplied, 0:12:50.320 --> 0:12:53.000 because that's important to the American people. But by making 0:12:53.040 --> 0:12:56.079 sure that energy prices stay low, it stars President Putin 0:12:56.120 --> 0:12:58.360 of the resources he needs to continue to fight the 0:12:58.360 --> 0:13:00.920 war in Ukraine and also to just ableize the region. 0:13:01.280 --> 0:13:04.160 Mr Secretary, how important is it to then get more 0:13:04.240 --> 0:13:08.559 production domestically, to encourage the domestic oil and shell producers 0:13:08.760 --> 0:13:11.839 to actually increase output, to create a buffer, to give 0:13:11.880 --> 0:13:14.680 you more tools. What I can say is that the 0:13:14.720 --> 0:13:16.800 most important thing we canna do is make sure that 0:13:16.880 --> 0:13:19.640 the market today is well supplied, and we're doing that 0:13:19.840 --> 0:13:21.680 in the United States, but we're also doing that with 0:13:21.679 --> 0:13:24.240 our allies and partners to sexually give me Let's go 0:13:24.280 --> 0:13:27.200 back to the question, are you reaching down to domestic 0:13:27.240 --> 0:13:30.320 supplies of crude in America? Have you spoken to them? 0:13:30.520 --> 0:13:33.400 Deaf and Energy said to us this week. The CEO 0:13:33.559 --> 0:13:36.720 was mystified that you haven't reached out to boost production 0:13:36.760 --> 0:13:38.839 at home. Have you done that? Have you spoken to 0:13:38.920 --> 0:13:43.120 domestic supplies? So as you know, well, um, the domestic 0:13:43.120 --> 0:13:45.720 supplier crude right now is at a peak and that 0:13:45.800 --> 0:13:47.880 it will take time for more supply to come online. 0:13:48.080 --> 0:13:50.160 We're focused on making sure that the energy markets are 0:13:50.200 --> 0:13:52.640 well supplied today because we want to make sure costs 0:13:52.720 --> 0:13:55.720 or reduce for American people today, and we're depriving President 0:13:55.760 --> 0:13:58.040 Putin of the resources he needs to fight the war today. 0:13:58.320 --> 0:14:00.160 Over time, we need to do more to make or 0:14:00.280 --> 0:14:02.480 that the energy market is well supplied, and we're also 0:14:02.520 --> 0:14:04.360 focused on that as well. You said we're to peak 0:14:04.400 --> 0:14:06.800 with eleven points six million pounds of all the day 0:14:06.960 --> 0:14:10.000 back to the north of thirteen. Just looking at that 0:14:10.360 --> 0:14:12.560 off the Blomberg terminal, What what do you mean we're 0:14:12.559 --> 0:14:16.480 to peak? My point is that at the moment we 0:14:16.559 --> 0:14:19.120 are producing a great deal of energy in this country. 0:14:19.320 --> 0:14:22.040 It will take time for additional energy to come online, 0:14:22.280 --> 0:14:24.160 but we want to make sure is that as it takes, 0:14:24.200 --> 0:14:27.360 as that energy comes online, we're well supplied today because 0:14:27.400 --> 0:14:29.040 we want to make sure that Americans who are going 0:14:29.080 --> 0:14:31.880 to the pump today are paying the lowest possible cost. 0:14:32.240 --> 0:14:34.480 That's going to require not just us to take action 0:14:34.520 --> 0:14:36.920 here in the United States, but other producers also to 0:14:36.920 --> 0:14:38.920 make sure that the energy markets well supplied. You're a 0:14:38.920 --> 0:14:42.880 great student of history on this, Mr Secretary, And is 0:14:42.920 --> 0:14:46.880 this a see change for the politics and the energy 0:14:46.960 --> 0:14:50.920 politics of the Democratic Party, Does Joe Biden have to 0:14:51.040 --> 0:14:55.720 leave the Democrats to a new energy theory, a new 0:14:55.880 --> 0:14:59.560 energy philosophy. I don't think it is. I think that 0:14:59.640 --> 0:15:01.800 ultimately only we've always been for a well suppli at 0:15:01.880 --> 0:15:04.640 energy market. We know that in the immediate term that's 0:15:04.640 --> 0:15:07.880 going to require us to rely on fossil fuels. But 0:15:07.960 --> 0:15:10.680 what we should learn from this is that ultimately being 0:15:10.720 --> 0:15:14.400 reliant on fossil fuels, fuels that often come from places 0:15:14.480 --> 0:15:17.200 like Russia, is not in anyone's interests. That's why the 0:15:17.240 --> 0:15:19.200 President is focused on making sure that we move to 0:15:19.280 --> 0:15:21.960 a clean energy future that's not only good for our security, 0:15:22.080 --> 0:15:25.000 but it's good for our planet over time. Mr Secretary, 0:15:25.520 --> 0:15:28.880 I'm a little bit confused, as many people are right now. 0:15:29.360 --> 0:15:32.960 Crudes at one eleven on the Bloomberg right now, once 0:15:32.960 --> 0:15:37.680 in ninety we've got domestic oil suppliers, private companies essentially 0:15:37.680 --> 0:15:39.200 saying we just want to hear from the White House. 0:15:39.280 --> 0:15:40.960 We're surprised we haven't heard from the White House. They 0:15:40.960 --> 0:15:43.280 haven't heard from you, They haven't heard from the White House. 0:15:43.520 --> 0:15:45.320 It doesn't make sense, and you keep repeating the same 0:15:45.320 --> 0:15:47.560 thing over and over again. We need to make sure 0:15:47.600 --> 0:15:50.520 there's enough crude supply. You won't. We can't reach out 0:15:50.520 --> 0:15:53.760 to domestic suppliers. We need to tighten the grip on Russia. 0:15:54.400 --> 0:15:55.960 The fact of the matter is people are stepping back 0:15:55.960 --> 0:15:57.640 from Russian crewed anyway. And as you know, and I'm 0:15:57.640 --> 0:15:59.480 just gonna repeat this for our audience, not for you, sir, 0:16:00.360 --> 0:16:03.600 three percent of crude imports last year for the United 0:16:03.640 --> 0:16:06.440 States came from Russia, just three So people are already 0:16:06.440 --> 0:16:09.600 stepping back from Russian crude. What is it you think 0:16:09.640 --> 0:16:12.760 will happen if the United States comes out and announces 0:16:12.800 --> 0:16:15.640 that they're no longer importing Russian crude? What is it 0:16:15.640 --> 0:16:17.560 that you think will happen? And if you don't want 0:16:17.600 --> 0:16:19.640 to do that, are you essentially suggesting that you want 0:16:19.680 --> 0:16:23.520 domestic refiners to be buying Russian crude? Is that the 0:16:23.560 --> 0:16:27.280 goal of these sanctions still? But you want domestic refiners 0:16:27.280 --> 0:16:30.040 to be buying Russian crude? Still? Is that the message 0:16:30.040 --> 0:16:33.920 you want to send to the American public today? So 0:16:33.960 --> 0:16:36.400 I know that you've repeated twice now that we haven't 0:16:36.400 --> 0:16:38.600 reached out to domestic producers. But as you know well, 0:16:39.120 --> 0:16:42.400 domestic producers are making decisions based on what they see 0:16:42.440 --> 0:16:44.840 in the market um their ability to make money in 0:16:44.880 --> 0:16:46.560 the market, and our goal is to make sure that 0:16:46.560 --> 0:16:48.680 we have a well supplied market. The President has been 0:16:48.760 --> 0:16:50.720 very clear about what our goal is is to make 0:16:50.760 --> 0:16:53.520 sure that with regard to sanctions, that we have a 0:16:53.560 --> 0:16:56.840 maximum impact on Russia and we minimize them impact on 0:16:57.000 --> 0:17:00.000 the United States and our allies. That's why he's taken 0:17:00.040 --> 0:17:03.400 steps like reduced like working with our allies and partners 0:17:03.560 --> 0:17:06.399 to reduce the energy supplies that we have in store, 0:17:06.600 --> 0:17:08.080 and we're going to continue to take steps to try 0:17:08.080 --> 0:17:10.560 and reduce costs for the American people. It's a Secretary, 0:17:10.960 --> 0:17:13.560 thanks for a time today, said well, the U S 0:17:13.600 --> 0:17:22.720 Deputy try to read Secretary. Jeff Rosenberg of black Rock 0:17:22.840 --> 0:17:25.399 joins us right now. Jeff, have you ever seen a 0:17:25.480 --> 0:17:29.480 number as big as six thousand met with a collective 0:17:29.480 --> 0:17:34.080 shrug in the market. Well, it's it's a reminder, Jonathan 0:17:34.119 --> 0:17:37.640 that that the market's focus is really not on on payrolls. 0:17:37.640 --> 0:17:40.040 But if we do just look at some of the 0:17:40.119 --> 0:17:43.720 implications of the payroll report, you know, clearly a very 0:17:43.760 --> 0:17:47.639 strong report across the board. Mike McKee, if you're if 0:17:47.640 --> 0:17:49.639 you're looking, i mean check out the work week that 0:17:49.760 --> 0:17:53.040 may have been behind that kind of disappointing month over 0:17:53.160 --> 0:17:56.080 month A G. I can't quite see it here, but 0:17:56.200 --> 0:18:00.679 this is really a difficult period for markets because you know, 0:18:00.720 --> 0:18:02.760 as we heard earlier this week, you know, the Fed 0:18:02.920 --> 0:18:07.080 is is focused on inflation and its need to get 0:18:07.119 --> 0:18:11.399 on with normalization and raise rates, while the market is 0:18:11.440 --> 0:18:15.920 focused on the implications of of of the Russian invasion, 0:18:15.960 --> 0:18:21.199 and that implication is a negative supply shock um you know, 0:18:21.320 --> 0:18:26.360 negative to growth, positive to inflation. It puts the Fed 0:18:26.359 --> 0:18:28.760 in a difficult position. More importantly, it puts us as 0:18:28.840 --> 0:18:33.000 investors in a difficult position that we can't really look to. Uh, 0:18:33.040 --> 0:18:36.720 you know, interest rates falling um from from from Fed 0:18:36.800 --> 0:18:39.160 policy easing in the face of any kind of growth 0:18:39.240 --> 0:18:41.800 slow down because of the inflationary aspect. So it's a 0:18:41.800 --> 0:18:44.919 it's a very tricky environment. Obviously, market reaction is about 0:18:45.000 --> 0:18:47.560 Russia Ukraine, not really about the pay we say good 0:18:47.560 --> 0:18:49.879 morning to Larry Finco. I know is watching and hanging 0:18:49.880 --> 0:18:52.040 on every word, Mr Rosenberg. I don't want you to 0:18:52.080 --> 0:18:55.119 give away the palace secrets, but does black crack and 0:18:55.280 --> 0:18:58.439 have any sense in full faith and credit and in 0:18:58.480 --> 0:19:00.960 the credit markets of all on all this war that 0:19:01.040 --> 0:19:05.679 you can mark to market. This Friday, Well, you know, 0:19:05.720 --> 0:19:08.320 what we're seeing in the credit markets, and this is 0:19:08.359 --> 0:19:11.879 this is kind of even you know, preceding some of uh, 0:19:12.160 --> 0:19:16.320 you know, the acceleration around the geopolitical uncertainties is you know, 0:19:16.359 --> 0:19:19.240 we're well off the tight levels and the tightest levels 0:19:19.240 --> 0:19:21.399 of spreads. You know, partly a lot of that was 0:19:21.400 --> 0:19:24.080 was just repricing to a higher interest rate environment. I 0:19:24.119 --> 0:19:28.240 think now, you know, you have a difficult time disentangling 0:19:28.240 --> 0:19:32.840 the price signals because there's a liquidity uh premium risk 0:19:32.920 --> 0:19:36.400 premium being built into the market. Uh. And I think 0:19:36.440 --> 0:19:38.800 most of the price response so far as that, but 0:19:38.880 --> 0:19:44.600 we have to recognize that the negative supply shock and 0:19:44.840 --> 0:19:49.480 the stagflationary impact of that is really a tricky environment 0:19:49.560 --> 0:19:53.359