1 00:00:01,440 --> 00:00:06,160 Speaker 1: Now from our nation's capital. This is Bloomberg Sound on 2 00:00:07,240 --> 00:00:09,800 Speaker 1: the prominent Labor and Ocean in particulars stands ready to 3 00:00:09,800 --> 00:00:12,159 Speaker 1: work with companies and keeping their workers safe. As we 4 00:00:12,200 --> 00:00:14,680 Speaker 1: contain to move through this phase of the pandemic, this 5 00:00:14,840 --> 00:00:18,400 Speaker 1: issue of getting inflation under control should be the principal issue. 6 00:00:18,440 --> 00:00:23,480 Speaker 1: Bloomberg Sound On ex Policy and Perspective from DC's top name. 7 00:00:24,000 --> 00:00:26,880 Speaker 1: J Powell is getting confirmed in his job is to 8 00:00:26,960 --> 00:00:30,600 Speaker 1: give Republican a reason to stick with him. We probably 9 00:00:30,640 --> 00:00:32,519 Speaker 1: won't get all of the build doctor better and we've 10 00:00:32,520 --> 00:00:34,720 Speaker 1: presented to the Senate, but we can get big important 11 00:00:34,720 --> 00:00:38,800 Speaker 1: pieces of us. Bloomberg Sound On with Joe Matthew on 12 00:00:39,000 --> 00:00:42,720 Speaker 1: Bloomberg Radio. It's one of those days where you need 13 00:00:42,800 --> 00:00:46,120 Speaker 1: to be listening to Bloomberg Radio in real time as 14 00:00:46,159 --> 00:00:49,000 Speaker 1: we watch major stories evolved from the reversal on Wall 15 00:00:49,000 --> 00:00:52,080 Speaker 1: Street to the fire. Host of headlines from Russia and 16 00:00:52,159 --> 00:00:54,000 Speaker 1: Ukraine will have all the latest for you here on 17 00:00:54,040 --> 00:00:56,440 Speaker 1: the fastest hour in politics and talk about it all 18 00:00:56,480 --> 00:01:00,000 Speaker 1: with foreign policy expert David to Fury later the press. 19 00:01:00,000 --> 00:01:02,400 Speaker 1: It a meeting with his new competition Council. This hour 20 00:01:02,440 --> 00:01:04,640 Speaker 1: at the White House. We'll talk rising prices, the threat 21 00:01:04,640 --> 00:01:07,240 Speaker 1: of inflation, and of course this week's FED meeting with 22 00:01:07,319 --> 00:01:10,360 Speaker 1: Brian d S, Director of the National Economic Council, and 23 00:01:10,400 --> 00:01:14,680 Speaker 1: the panel is intact. Bloomberg Politics contributors Jeanie Schanzano and 24 00:01:14,760 --> 00:01:17,200 Speaker 1: Rick Davis are back with us now. We turned to 25 00:01:17,240 --> 00:01:21,160 Speaker 1: the situation involving Russia and Ukraine, with tensions seeming to 26 00:01:21,200 --> 00:01:25,640 Speaker 1: grow more intense over the weekend. On balance of power 27 00:01:25,680 --> 00:01:31,319 Speaker 1: earlier today, I heard people's opinions changing from Friday to today, 28 00:01:31,520 --> 00:01:33,880 Speaker 1: and President Biden held a video call last hour with 29 00:01:33,920 --> 00:01:37,600 Speaker 1: our European allies. As the US moves to evacuate the 30 00:01:37,640 --> 00:01:40,000 Speaker 1: family members of diplomats in Ukraine. We told you that 31 00:01:40,080 --> 00:01:43,679 Speaker 1: was coming. And as the US prepares to possibly send 32 00:01:44,400 --> 00:01:47,680 Speaker 1: up to five thousand or more troops to Eastern Europe 33 00:01:47,720 --> 00:01:49,960 Speaker 1: and the Baltics, it sounds like more if needed. Here's 34 00:01:49,960 --> 00:01:54,320 Speaker 1: Pentagon Press Secretary John Kirby. Secretary Austin has placed a 35 00:01:54,400 --> 00:01:57,200 Speaker 1: range of units in the United States on a heightened 36 00:01:57,360 --> 00:02:01,640 Speaker 1: preparedness to deploy, which increases our readiness to provide forces 37 00:02:01,680 --> 00:02:06,440 Speaker 1: if NATO should activate the NRF or if other situations developed. 38 00:02:07,120 --> 00:02:11,760 Speaker 1: All told, the number of forces that the Secretary has 39 00:02:11,800 --> 00:02:17,440 Speaker 1: placed on heighten alert. UH comes up to about personnelse 40 00:02:17,520 --> 00:02:21,120 Speaker 1: we're talking more than eight thousand possible. And the comments 41 00:02:21,160 --> 00:02:24,079 Speaker 1: also followed a meeting between the Secretary State Anthony Lincoln 42 00:02:24,120 --> 00:02:26,640 Speaker 1: and European foreign ministers this morning. A lot of talking 43 00:02:26,639 --> 00:02:29,280 Speaker 1: going on here. People need to stay in touch as 44 00:02:29,360 --> 00:02:32,200 Speaker 1: he tries to keep everyone on the same page on 45 00:02:32,240 --> 00:02:34,520 Speaker 1: the other side of the ocean, not always on the 46 00:02:34,560 --> 00:02:37,600 Speaker 1: same page in Europe when it comes to this, and well, 47 00:02:37,639 --> 00:02:40,200 Speaker 1: that's where we begin with David to Fury, former Obama 48 00:02:40,240 --> 00:02:43,160 Speaker 1: campaign foreign policy Advisor's great to have you back, David. 49 00:02:43,200 --> 00:02:46,120 Speaker 1: The President spent the weekend with his national security team 50 00:02:46,160 --> 00:02:50,320 Speaker 1: at Camp David. Then the fire hose of headlines, as 51 00:02:50,360 --> 00:02:52,560 Speaker 1: I describe it, followed, are we entering a new phase 52 00:02:52,800 --> 00:02:57,160 Speaker 1: in this standoff? Well, I think for entry essays where 53 00:02:57,400 --> 00:03:00,320 Speaker 1: President Biden and his team recognize that they need to 54 00:03:00,320 --> 00:03:05,840 Speaker 1: do more to deter Putin. As the President mentioned last week, 55 00:03:05,880 --> 00:03:08,519 Speaker 1: he does seem to think that Putin is going to 56 00:03:08,639 --> 00:03:13,280 Speaker 1: mount an increased invasion or present in Ukraine. So they've 57 00:03:13,280 --> 00:03:16,520 Speaker 1: announced the readiness of these troops to go into Eastern Europe. 58 00:03:16,760 --> 00:03:19,079 Speaker 1: But notably, they're not going to be going to Ukraine. 59 00:03:19,200 --> 00:03:22,280 Speaker 1: Yet just to other countries in Eastern Europe that we 60 00:03:22,400 --> 00:03:26,640 Speaker 1: also want to defend, but is also probably Yeah, the 61 00:03:26,639 --> 00:03:29,519 Speaker 1: team is looking for other ways to deter Putin. Um 62 00:03:29,639 --> 00:03:32,240 Speaker 1: sanctions may not be enough. I think Putin knows sanctions 63 00:03:32,240 --> 00:03:35,560 Speaker 1: are coming if he does this. So also the team 64 00:03:35,720 --> 00:03:38,240 Speaker 1: is trying to get more support from our European LS. 65 00:03:38,520 --> 00:03:41,160 Speaker 1: I can't see to find anybody who thinks though that 66 00:03:41,360 --> 00:03:44,120 Speaker 1: there is going to be an invasion, that Vladimir Putin 67 00:03:44,240 --> 00:03:47,560 Speaker 1: does want to go to war or test our resolve 68 00:03:47,640 --> 00:03:51,480 Speaker 1: in this case. Do you believe that? I don't think 69 00:03:51,520 --> 00:03:54,320 Speaker 1: anyone knows what Putin is going to do, and anyone 70 00:03:54,560 --> 00:03:58,160 Speaker 1: seems to think he's ready to go for it. Biden 71 00:03:58,200 --> 00:04:00,000 Speaker 1: thinks he's ready to go for it. There are certain 72 00:04:00,040 --> 00:04:03,360 Speaker 1: me some UH senators who are receiving intelligence reports who 73 00:04:03,400 --> 00:04:05,880 Speaker 1: also think he is going to go for it, and 74 00:04:05,920 --> 00:04:08,560 Speaker 1: he very well may. I mean, he's testing what the 75 00:04:08,680 --> 00:04:12,400 Speaker 1: response will be, and he wants some concessions from the US. 76 00:04:12,480 --> 00:04:16,480 Speaker 1: Obviously we're going backwards for what he wants to accomplish, 77 00:04:16,480 --> 00:04:19,520 Speaker 1: and we put troops into other Eastern European countries because 78 00:04:19,520 --> 00:04:21,800 Speaker 1: this whole goal is to get us to back away 79 00:04:21,839 --> 00:04:25,080 Speaker 1: and have less of the military presence in Eastern Europe. 80 00:04:25,080 --> 00:04:26,880 Speaker 1: So are we doing the right thing by moving in? 81 00:04:27,000 --> 00:04:28,520 Speaker 1: I mean, we're kind of calling his bluff here a 82 00:04:28,560 --> 00:04:33,599 Speaker 1: little bit. My personal view is that we should be 83 00:04:33,680 --> 00:04:37,000 Speaker 1: doing more to deter him from doing this. Ukraine is 84 00:04:37,160 --> 00:04:41,320 Speaker 1: a sovereign country and the Russia has no right to 85 00:04:41,640 --> 00:04:43,839 Speaker 1: be engaged in what has already being engaged in, which 86 00:04:43,880 --> 00:04:48,520 Speaker 1: is interference in in in Ukraine's government, a presence in 87 00:04:48,720 --> 00:04:54,600 Speaker 1: Eastern Ukraine, engaging in supporting separatists in Eastern Ukraine, and 88 00:04:54,880 --> 00:04:59,200 Speaker 1: stirring up um fighting inside Ukraine. And and that's all 89 00:04:59,279 --> 00:05:02,880 Speaker 1: done in order to steiny the democracy in Ukraine. And 90 00:05:02,920 --> 00:05:05,960 Speaker 1: that's really what Putin wants. I mean, this is about democracy. 91 00:05:06,000 --> 00:05:09,880 Speaker 1: Putin does not want democracies on his border. He feels 92 00:05:09,880 --> 00:05:11,920 Speaker 1: those are a threat. And so if the U s 93 00:05:11,920 --> 00:05:16,279 Speaker 1: still stand for supporting democracies around the world, supporting the 94 00:05:16,320 --> 00:05:18,320 Speaker 1: spread of democracy, and then we have to do more. 95 00:05:19,520 --> 00:05:21,960 Speaker 1: As we spent some time with David to Fury trying 96 00:05:22,000 --> 00:05:24,159 Speaker 1: to figure out the way forward here, what do you 97 00:05:24,200 --> 00:05:26,680 Speaker 1: make of the evacuation order? This is something that Bloomberg 98 00:05:26,720 --> 00:05:29,919 Speaker 1: first reported late last week. It did come true. Some 99 00:05:30,080 --> 00:05:32,279 Speaker 1: have thought it was posturing, though others thought it was 100 00:05:32,320 --> 00:05:34,560 Speaker 1: maybe your response to what happened on the way out 101 00:05:34,560 --> 00:05:37,120 Speaker 1: of Afghanistan. This is a white House that does not 102 00:05:37,240 --> 00:05:39,919 Speaker 1: want to be caught in a situation like that again 103 00:05:39,960 --> 00:05:43,679 Speaker 1: with Americans stuck behind uh. I won't say enemy lines, 104 00:05:43,720 --> 00:05:47,400 Speaker 1: but in a war zone. I think that's right. There's 105 00:05:47,400 --> 00:05:50,840 Speaker 1: a lot of sensitivity around our embassies, and rightfully so, 106 00:05:50,920 --> 00:05:54,280 Speaker 1: our State Department and Secretary blink and want to protect 107 00:05:54,480 --> 00:05:58,080 Speaker 1: our diplomats and their families, and so that's why he's 108 00:05:58,160 --> 00:06:01,880 Speaker 1: taken this action. Of course, I think it could have 109 00:06:01,960 --> 00:06:04,240 Speaker 1: been massaged a little differently. What we should have made 110 00:06:04,279 --> 00:06:07,720 Speaker 1: clear is we are continuing our diplomatic presence in Kiev. 111 00:06:07,760 --> 00:06:10,600 Speaker 1: We're just moving out the families. And there's some in Ukraine. 112 00:06:10,640 --> 00:06:13,400 Speaker 1: He felt that message should have been made more clear 113 00:06:13,480 --> 00:06:17,200 Speaker 1: because the way it was talked about in the media 114 00:06:17,640 --> 00:06:20,080 Speaker 1: made some people think this this is a sign that 115 00:06:20,120 --> 00:06:23,159 Speaker 1: we're getting ready for Russia to indeed Ukraine obviously that's 116 00:06:23,160 --> 00:06:25,960 Speaker 1: not what Ukraine wants as a message. When you back 117 00:06:26,000 --> 00:06:28,640 Speaker 1: off and consider what we have seen the past couple 118 00:06:28,680 --> 00:06:33,960 Speaker 1: of weeks watching specifically Joe Biden in his conversations with 119 00:06:34,160 --> 00:06:38,400 Speaker 1: Vladimir Putin, in his communications to the world, the American 120 00:06:38,440 --> 00:06:41,960 Speaker 1: people in the world about his intentions. Is this the 121 00:06:42,000 --> 00:06:45,279 Speaker 1: Obama school? I ask you that, as the former foreign 122 00:06:45,360 --> 00:06:48,839 Speaker 1: policy adviser to the Obama campaign, is he taking the 123 00:06:48,839 --> 00:06:51,920 Speaker 1: the Obama approach from his former boss or has Joe 124 00:06:51,920 --> 00:06:56,400 Speaker 1: Biden created an approach of his own. I think this 125 00:06:56,560 --> 00:06:59,520 Speaker 1: is Biden's own approach. I mean, they're they're you know, 126 00:06:59,560 --> 00:07:02,600 Speaker 1: obviously he served as for eight years as vice president 127 00:07:02,640 --> 00:07:05,600 Speaker 1: to Obama, who was part of the foreign policy team. 128 00:07:05,640 --> 00:07:08,640 Speaker 1: But the approach here is a little bit different. And 129 00:07:09,520 --> 00:07:12,360 Speaker 1: you know, nobody can say that this is an easy 130 00:07:12,360 --> 00:07:16,320 Speaker 1: situation to deal with. It's very difficult, and their opinions 131 00:07:16,440 --> 00:07:20,320 Speaker 1: on different sides. We're dealing with a very cag leader, Imputin, 132 00:07:20,640 --> 00:07:24,680 Speaker 1: who has, you know, the singular goal of of disrupting, 133 00:07:25,000 --> 00:07:29,080 Speaker 1: you know, America's objectives abroad and fight, you know, preventing 134 00:07:29,520 --> 00:07:34,720 Speaker 1: the stable stability of countries around him. And so how 135 00:07:34,800 --> 00:07:37,880 Speaker 1: we do that, how we deter that while also not 136 00:07:37,920 --> 00:07:42,240 Speaker 1: getting too engaged overseas, which is something that um, you know, 137 00:07:42,280 --> 00:07:45,680 Speaker 1: American people want based on polling, and that's something is 138 00:07:45,720 --> 00:07:50,400 Speaker 1: the view of mainstream politicians and both parties is where 139 00:07:50,440 --> 00:07:53,120 Speaker 1: there is a real challenge for this president. Well, let's 140 00:07:53,160 --> 00:07:57,320 Speaker 1: talk about the challenge of crafting sanctions. Obviously, Democrats did 141 00:07:57,320 --> 00:07:59,560 Speaker 1: not want the bill put forth by Ted Cruz last 142 00:07:59,600 --> 00:08:03,280 Speaker 1: week to sanction nord Stream. There were concerns that essentially 143 00:08:03,480 --> 00:08:07,200 Speaker 1: it didn't involve our European allies and crafting the approach here, 144 00:08:07,240 --> 00:08:10,080 Speaker 1: and it sure seems like this administration wants to be 145 00:08:10,200 --> 00:08:14,400 Speaker 1: arm locked with Europe before anything happens. How important will 146 00:08:14,400 --> 00:08:17,760 Speaker 1: it be to have bipartisan support for sanctions on Capitol Hill? 147 00:08:17,840 --> 00:08:19,560 Speaker 1: Is the president going to get what he needs there? 148 00:08:21,320 --> 00:08:24,360 Speaker 1: I think he will get what he needs. For sanctions 149 00:08:24,400 --> 00:08:27,040 Speaker 1: to work. They really have to strike at the heart 150 00:08:27,120 --> 00:08:30,880 Speaker 1: of Putin. That means sanctioning more of the people around him, 151 00:08:31,200 --> 00:08:33,719 Speaker 1: more of the businesses that he uses to line his 152 00:08:36,320 --> 00:08:38,960 Speaker 1: part of me. That's what they're promising now. Robert Menendez 153 00:08:38,960 --> 00:08:42,360 Speaker 1: says he is the mother of all sanctions bills. So 154 00:08:42,480 --> 00:08:45,160 Speaker 1: it's your point, is it's time to get personal with 155 00:08:45,200 --> 00:08:47,679 Speaker 1: the sanctions. But our Republicans going to be on board. 156 00:08:48,679 --> 00:08:50,600 Speaker 1: I think they will be on board. I think that 157 00:08:51,040 --> 00:08:55,520 Speaker 1: you know, there's bipartisan support for deterring Putin from taking 158 00:08:55,679 --> 00:08:58,560 Speaker 1: for engaging in this kind of adventurism in Ukraine or 159 00:08:58,559 --> 00:09:02,160 Speaker 1: any other countries in Eastern Europe. And I think the 160 00:09:02,280 --> 00:09:05,000 Speaker 1: leaders in both parties recognize this, and I think we'll 161 00:09:05,040 --> 00:09:08,400 Speaker 1: get something through. I certainly hope this rises above in 162 00:09:08,480 --> 00:09:14,200 Speaker 1: our own domestic politics. Who's posturing both sides, you know, 163 00:09:14,679 --> 00:09:16,360 Speaker 1: I don't. I don't want to say people are positively. 164 00:09:16,400 --> 00:09:20,200 Speaker 1: I think we are dealing with a very difficult challenge here. 165 00:09:21,040 --> 00:09:24,520 Speaker 1: You know, until until the last six months, people didn't 166 00:09:24,559 --> 00:09:28,480 Speaker 1: really recognize the threat that Putin posed to Ukraine and 167 00:09:28,480 --> 00:09:31,240 Speaker 1: to our other allies in Eastern Europe. And I think 168 00:09:31,480 --> 00:09:33,959 Speaker 1: people in both parties are waking up to that now, 169 00:09:34,400 --> 00:09:37,120 Speaker 1: and they still need to learn more. They still need 170 00:09:37,160 --> 00:09:40,880 Speaker 1: to experiment with what are going to be the best responses. 171 00:09:40,960 --> 00:09:44,080 Speaker 1: And we also do have to get other countries around 172 00:09:44,120 --> 00:09:46,720 Speaker 1: the world that our allies to support us, because sanctions 173 00:09:46,760 --> 00:09:49,520 Speaker 1: don't work if they're just the u S sanctions. We 174 00:09:49,600 --> 00:09:52,560 Speaker 1: understand French President Manuel Macrone will be speaking with Putin 175 00:09:52,640 --> 00:09:54,840 Speaker 1: or is planning to in the coming days. As I 176 00:09:54,880 --> 00:09:58,120 Speaker 1: read on the Bloomberg to press for a de escalation 177 00:09:58,320 --> 00:10:01,120 Speaker 1: on the border with Ukraine. It doesn't sound like Europe 178 00:10:01,200 --> 00:10:04,400 Speaker 1: is always involving the United States in the way that 179 00:10:04,480 --> 00:10:06,680 Speaker 1: it's handling this, And I know that the Germans don't 180 00:10:06,679 --> 00:10:10,560 Speaker 1: necessarily agree with the approach either. Here, how much of 181 00:10:10,559 --> 00:10:13,080 Speaker 1: a concern is this. How much of a difficult job 182 00:10:13,200 --> 00:10:15,040 Speaker 1: is it for Secretary of State b Linking to keep 183 00:10:15,040 --> 00:10:18,680 Speaker 1: everybody on the same page. This is a big concern. 184 00:10:19,080 --> 00:10:22,520 Speaker 1: What's strange about it is that Europe stands to lose 185 00:10:22,559 --> 00:10:25,920 Speaker 1: more than the US. This, after all, is on their 186 00:10:25,960 --> 00:10:30,480 Speaker 1: Continent's happening very close to them. And if Russia expands 187 00:10:30,520 --> 00:10:33,120 Speaker 1: into Ukraine and then takes that as a sign that 188 00:10:33,160 --> 00:10:35,200 Speaker 1: no one will do anything if they expand into other 189 00:10:35,240 --> 00:10:39,200 Speaker 1: countries like the Baltic States, that's a significant threat to 190 00:10:39,400 --> 00:10:42,760 Speaker 1: Europe and to the EU countries. So the fact that 191 00:10:42,800 --> 00:10:46,840 Speaker 1: they are not lockstep with US in terms of creating 192 00:10:46,880 --> 00:10:51,079 Speaker 1: a more significant deterrent against Russia is a real surprise, 193 00:10:51,200 --> 00:10:53,840 Speaker 1: and I think that's what the Biden team is working 194 00:10:53,880 --> 00:10:56,360 Speaker 1: to accomplish with our European allies. When I read the 195 00:10:56,440 --> 00:10:59,120 Speaker 1: story about you know, Macron wants Russia to reduce it's 196 00:10:59,160 --> 00:11:04,280 Speaker 1: build up or hear publicly what Moscow's intentions are. According 197 00:11:04,320 --> 00:11:06,960 Speaker 1: to this story on the terminal, it doesn't sound like 198 00:11:07,000 --> 00:11:11,680 Speaker 1: an alliance speaking. I'm not so sure about that. And 199 00:11:11,679 --> 00:11:15,160 Speaker 1: I'm McCrone is a very gifted leader, and he may 200 00:11:15,200 --> 00:11:19,520 Speaker 1: have his own way of, you know, trying to contribute 201 00:11:19,640 --> 00:11:23,800 Speaker 1: in a positive way to a compromise here by you know, 202 00:11:23,840 --> 00:11:27,440 Speaker 1: appealing to a Putin and not confronting him publicly, but 203 00:11:27,559 --> 00:11:30,960 Speaker 1: perhaps privately making clear that France is going to support 204 00:11:30,960 --> 00:11:32,880 Speaker 1: the U S. I hope that's what's happening. Yeah, we 205 00:11:32,960 --> 00:11:37,320 Speaker 1: do all hope that there is some rationale here. David. 206 00:11:37,360 --> 00:11:40,320 Speaker 1: Thank you, David. It's a fury former Obama campaign foreign 207 00:11:40,320 --> 00:11:43,280 Speaker 1: policy advisor getting us rolling here on sound On. We 208 00:11:43,400 --> 00:11:46,040 Speaker 1: are off and running and we'll assemble the panel next. 209 00:11:46,120 --> 00:11:49,000 Speaker 1: Rick and Janie or with us on Bloomberg. I'm Joe Matthew. 210 00:11:49,240 --> 00:11:55,480 Speaker 1: This is Bloomberg. This is Bloomberg sond On with Joe 211 00:11:55,600 --> 00:12:01,680 Speaker 1: Matthew on Bloomberg Radio. Headline on the terminal no plan 212 00:12:01,880 --> 00:12:06,840 Speaker 1: to militarily evacuate US citizens in Ukraine, a line attributed 213 00:12:06,880 --> 00:12:09,880 Speaker 1: to Jen Saki, the White House Press secretary. And of 214 00:12:09,920 --> 00:12:15,320 Speaker 1: course we're all remembering last August Afghanistan and the massive 215 00:12:15,440 --> 00:12:18,600 Speaker 1: airlift that was conducted by our US military. But efforts 216 00:12:18,679 --> 00:12:22,400 Speaker 1: are underway to get people out as we mentioned family 217 00:12:22,440 --> 00:12:25,720 Speaker 1: members of diplomats. Jen Saki, the Press Secretary, once again 218 00:12:25,840 --> 00:12:27,800 Speaker 1: was asked by a reporter, as you'll hear in the 219 00:12:27,800 --> 00:12:33,080 Speaker 1: White House briefing here today, if Americans in the country 220 00:12:33,240 --> 00:12:37,640 Speaker 1: are at risk, if Americans are still in Ukraine and 221 00:12:37,679 --> 00:12:40,920 Speaker 1: things start happening with Russia, are they pretty much on 222 00:12:40,960 --> 00:12:45,320 Speaker 1: their own? We are conveying very clearly now that now 223 00:12:45,440 --> 00:12:47,960 Speaker 1: is the time to leave, and that there are means 224 00:12:48,000 --> 00:12:50,400 Speaker 1: to do that. Of course, there's commercial airlines, you can 225 00:12:50,440 --> 00:12:55,000 Speaker 1: depart over land. There's obviously the embassy there to provide assistance. 226 00:12:55,320 --> 00:12:58,239 Speaker 1: And this is very similar to what we did in Ethiopia, 227 00:12:58,520 --> 00:13:01,719 Speaker 1: Kazakhstan and many other countries over the course of the 228 00:13:01,800 --> 00:13:04,920 Speaker 1: last several decades. But there is not an intention or 229 00:13:04,960 --> 00:13:08,360 Speaker 1: a plan for any military evacuation. You have it now, however, 230 00:13:08,559 --> 00:13:11,600 Speaker 1: is the time to leave, she says. Let's assemble the panel. 231 00:13:11,600 --> 00:13:16,320 Speaker 1: Bloomberg Politics contributors Genie Shenzano and Rick Davis are with us. 232 00:13:16,320 --> 00:13:18,240 Speaker 1: Great to have you guys back today. We're spending a 233 00:13:18,240 --> 00:13:21,480 Speaker 1: long day together here and your insights are valued. I 234 00:13:21,520 --> 00:13:24,240 Speaker 1: want to hear from Genie first on this is this 235 00:13:24,360 --> 00:13:27,680 Speaker 1: the right move? We talked earlier Genie about how they're 236 00:13:27,720 --> 00:13:30,960 Speaker 1: being so careful to not repeat any mistakes from Afghanistan. 237 00:13:31,040 --> 00:13:33,240 Speaker 1: Why not bring the C forty seven's in and start 238 00:13:33,280 --> 00:13:36,280 Speaker 1: flying people out? Boy Joe, it's been quite a day, 239 00:13:36,320 --> 00:13:38,720 Speaker 1: and if they start doing that in the near future, 240 00:13:38,800 --> 00:13:41,640 Speaker 1: I think that may just set us all over the 241 00:13:41,760 --> 00:13:44,600 Speaker 1: edge to repeat that. Um. I think they are making 242 00:13:44,640 --> 00:13:47,840 Speaker 1: the right move by warning against travel to the Ukraine 243 00:13:48,120 --> 00:13:51,320 Speaker 1: and telling people now is the time to consider getting out. 244 00:13:51,600 --> 00:13:53,679 Speaker 1: But I do think it would probably at this point 245 00:13:53,679 --> 00:13:57,320 Speaker 1: be a bit premature to send those in and try 246 00:13:57,320 --> 00:14:00,480 Speaker 1: to move people that way. UM. You know, I kept 247 00:14:00,480 --> 00:14:03,120 Speaker 1: thinking all day, you know, with the markets and everything 248 00:14:03,200 --> 00:14:06,520 Speaker 1: else going on, it feels very very precarious in the world, 249 00:14:06,960 --> 00:14:10,240 Speaker 1: and I think to send that in and as we 250 00:14:10,679 --> 00:14:13,320 Speaker 1: have a repeat of Afghanistan, which we you know, can't 251 00:14:13,320 --> 00:14:15,480 Speaker 1: even imagine at this point, I think that would be 252 00:14:15,520 --> 00:14:17,720 Speaker 1: the wrong move for the administration, and I don't think 253 00:14:17,720 --> 00:14:20,040 Speaker 1: it would help the situation. Rick, I dated myself with 254 00:14:20,120 --> 00:14:22,160 Speaker 1: the C forty seven. How about a C seventeen or 255 00:14:22,160 --> 00:14:24,040 Speaker 1: something with jet engines on it. I guess the point is, 256 00:14:24,040 --> 00:14:26,960 Speaker 1: should we be more considered about moving people? Yeah? No, 257 00:14:27,040 --> 00:14:29,120 Speaker 1: I don't think so. I think you know David to 258 00:14:29,280 --> 00:14:32,280 Speaker 1: Fury actually made the right point earlier in the interview 259 00:14:32,320 --> 00:14:35,840 Speaker 1: where he said that, um, you know, messaging is more 260 00:14:35,880 --> 00:14:39,440 Speaker 1: important right now than the actual action. Um Putin is 261 00:14:39,480 --> 00:14:43,600 Speaker 1: not cross the red line yet. Uh and uh. And 262 00:14:43,640 --> 00:14:47,240 Speaker 1: we need to show support for the Ukrainian sovereign country. 263 00:14:47,400 --> 00:14:50,720 Speaker 1: And by looking like we're turning tail and running uh, 264 00:14:50,760 --> 00:14:53,560 Speaker 1: it's it's not a good message to send either to 265 00:14:53,640 --> 00:14:56,200 Speaker 1: the Russians or to our European allies, all of whom 266 00:14:56,360 --> 00:14:59,880 Speaker 1: we're pressuring to stand pat and make sure that tho 267 00:15:00,120 --> 00:15:02,880 Speaker 1: impressions are the right one. So yeah, I think they 268 00:15:02,880 --> 00:15:04,680 Speaker 1: gotta take a step by step. In fact, I think 269 00:15:04,720 --> 00:15:06,720 Speaker 1: they've done a little bit too much. They need to 270 00:15:07,000 --> 00:15:09,440 Speaker 1: They need to let the situation gel a little bit. Well, 271 00:15:09,440 --> 00:15:11,200 Speaker 1: the messaging is still coming out of the White House. 272 00:15:11,200 --> 00:15:13,360 Speaker 1: We actually just heard from President Biden is holding an 273 00:15:13,360 --> 00:15:16,320 Speaker 1: event about something altogether different. We're gonna talk to Brian 274 00:15:16,400 --> 00:15:18,360 Speaker 1: Deese about later on this hour, but of course this 275 00:15:18,440 --> 00:15:21,480 Speaker 1: is going to come up. He held an important meeting today, 276 00:15:21,520 --> 00:15:24,440 Speaker 1: a video call with the leaders of our European allies. 277 00:15:24,520 --> 00:15:27,000 Speaker 1: The President was just asked about this in the East 278 00:15:27,040 --> 00:15:34,760 Speaker 1: room here. He is the only reason I don't like 279 00:15:34,840 --> 00:15:37,000 Speaker 1: doing this is you never report on why I've called 280 00:15:37,000 --> 00:15:40,320 Speaker 1: a meeting. This is really important. I had a very 281 00:15:40,640 --> 00:15:44,440 Speaker 1: very very good meeting, totally unanimity with all the European leaders. 282 00:15:44,600 --> 00:15:48,720 Speaker 1: We'll talk about it later, thank you. Total that's not 283 00:15:48,760 --> 00:15:52,040 Speaker 1: what we've had reported, Genie that there were actually concerns 284 00:15:52,080 --> 00:15:54,480 Speaker 1: that not everybody was on the same page. Germany sees 285 00:15:54,480 --> 00:15:56,800 Speaker 1: it differently. France wants to meet with Putin. Are they 286 00:15:57,480 --> 00:16:00,840 Speaker 1: are they unanimous here? Well, that's right. We have no 287 00:16:00,920 --> 00:16:02,840 Speaker 1: evidence and we have to wait to see what the 288 00:16:02,880 --> 00:16:05,680 Speaker 1: president has to say in terms of what he's talking about. 289 00:16:05,680 --> 00:16:10,000 Speaker 1: In terms of anonymity, sure, they may be you know, unanimity. Rather, 290 00:16:10,120 --> 00:16:13,080 Speaker 1: they may be unanimous on something like if you know, 291 00:16:13,240 --> 00:16:16,040 Speaker 1: Russia or Putin should go in with troops, they would 292 00:16:16,080 --> 00:16:19,600 Speaker 1: take action. But beyond that we see a variety of 293 00:16:19,640 --> 00:16:22,920 Speaker 1: opinions on how to respond. And you know, we should 294 00:16:22,960 --> 00:16:26,240 Speaker 1: also note that the Ukrainian government said today that the 295 00:16:26,280 --> 00:16:29,400 Speaker 1: move by the US and the UK in terms of 296 00:16:30,040 --> 00:16:34,080 Speaker 1: you know, removing essential or personnel family of essential personnel 297 00:16:34,480 --> 00:16:37,720 Speaker 1: um and non essential personnel from the embassy's was a 298 00:16:37,720 --> 00:16:40,320 Speaker 1: bit premature. So I think there is a sense in 299 00:16:40,320 --> 00:16:43,440 Speaker 1: the Ukraine importantly, that we've got to be a bit 300 00:16:43,480 --> 00:16:45,800 Speaker 1: careful of how we respond to this. It sounds Rick 301 00:16:45,880 --> 00:16:47,840 Speaker 1: like if you were advising the president right now, you 302 00:16:47,840 --> 00:16:49,480 Speaker 1: tell him to cool it for a day, maybe not 303 00:16:49,560 --> 00:16:52,080 Speaker 1: talk about this tomorrow. No. I think you've got to 304 00:16:52,160 --> 00:16:56,120 Speaker 1: keep the pressure on Russia, but that doesn't mean to 305 00:16:56,360 --> 00:16:59,080 Speaker 1: start pulling the cord, you know, and withdrawing people out 306 00:16:59,080 --> 00:17:02,400 Speaker 1: of Ukraine. I think Vladimir Putin has got to feel 307 00:17:02,400 --> 00:17:05,600 Speaker 1: pressure from every angle, from Europe, you know, from his 308 00:17:05,720 --> 00:17:08,040 Speaker 1: other host countries, all of whom are going to experience 309 00:17:08,119 --> 00:17:11,800 Speaker 1: pressure through these sanctions if they're applied, and especially from 310 00:17:12,320 --> 00:17:15,800 Speaker 1: President Biden, who is got the mouthpiece. I mean, you're right, 311 00:17:15,880 --> 00:17:19,000 Speaker 1: others are trying to get into the act. President McCrone 312 00:17:19,040 --> 00:17:21,639 Speaker 1: sees himselves as leader of Europe wants his own channel in. 313 00:17:22,040 --> 00:17:25,560 Speaker 1: But like right now, intensity matters because nothing is done 314 00:17:25,720 --> 00:17:28,840 Speaker 1: until those tanks role and if you can stop that 315 00:17:28,880 --> 00:17:33,080 Speaker 1: from happening, that you've you've avoided a disaster. Megaproportions. Do 316 00:17:33,119 --> 00:17:36,560 Speaker 1: we move those eight thousand troops? Rick, Yeah, I think that, Uh, 317 00:17:36,840 --> 00:17:38,320 Speaker 1: you know, it's it's one of these things that's a 318 00:17:38,320 --> 00:17:40,879 Speaker 1: bit of a chess game, right Vladmir Putin puts troops 319 00:17:40,880 --> 00:17:43,840 Speaker 1: into Belarus. You know, we put troops into the Baltics. 320 00:17:43,880 --> 00:17:45,960 Speaker 1: I mean, like, I think you've got to match his 321 00:17:46,040 --> 00:17:48,639 Speaker 1: moves because otherwise he looks like he can get away 322 00:17:48,680 --> 00:17:51,760 Speaker 1: with this with impunity. And that's a mistake to believe 323 00:17:51,800 --> 00:17:54,679 Speaker 1: that you worry about blowback on moving eight thousand troops 324 00:17:54,680 --> 00:17:58,120 Speaker 1: into Eastern Europe. Uni. Um, you always worry about blowback, 325 00:17:58,160 --> 00:18:00,840 Speaker 1: But I think we do have to act. He's asking 326 00:18:00,880 --> 00:18:04,680 Speaker 1: to violate there. He's starting to violate international order going 327 00:18:04,720 --> 00:18:06,840 Speaker 1: into a sovereign country. It's got to be met with 328 00:18:06,880 --> 00:18:10,679 Speaker 1: a swift and serious response. Coming up on Bloomberg Sound On, 329 00:18:10,800 --> 00:18:15,000 Speaker 1: we will talk with President Biden's top economic advisor, Brian 330 00:18:15,119 --> 00:18:18,760 Speaker 1: Deese about the Federal Reserve meeting this week, the wild 331 00:18:18,840 --> 00:18:22,879 Speaker 1: roller coaster on Wall streets, and competition. An important meeting 332 00:18:22,880 --> 00:18:25,480 Speaker 1: happening today we'll hear about at the White House. This 333 00:18:25,560 --> 00:18:32,480 Speaker 1: is Bloomberg broadcasting live from our nation's capital, Bloomberg to 334 00:18:32,640 --> 00:18:36,720 Speaker 1: New York, Bloomberg eleven Frio to Boston, Bloomberg one O 335 00:18:36,880 --> 00:18:41,080 Speaker 1: six one to San Francisco, Bloomberg nine sixty to the Country, 336 00:18:41,280 --> 00:18:44,760 Speaker 1: Serious XM Channel one nine and around the Globe, the 337 00:18:44,840 --> 00:18:49,040 Speaker 1: Bloomberg Business app, and Bloomberg Radio dot Com. This is 338 00:18:49,080 --> 00:18:54,959 Speaker 1: Bloomberg Sound On with Joe Matthews. The White House worried 339 00:18:55,000 --> 00:18:58,080 Speaker 1: about Wall Street on the eve of this week's Federal 340 00:18:58,119 --> 00:19:02,280 Speaker 1: Reserve meeting. Could it derail the recovery? We'll ask Brian 341 00:19:02,400 --> 00:19:05,560 Speaker 1: Diese about that, director of the White House Economic Council. 342 00:19:05,600 --> 00:19:09,040 Speaker 1: As President Biden meets today with his so called Competition 343 00:19:09,160 --> 00:19:12,720 Speaker 1: Council in the hopes of keeping inflation in check, we're 344 00:19:12,720 --> 00:19:15,680 Speaker 1: not welcome one of the President's top economic advisors. Brian 345 00:19:15,720 --> 00:19:18,760 Speaker 1: Deese is Director of the National Economic Council, and back 346 00:19:18,800 --> 00:19:21,399 Speaker 1: with us on Bloomberg's Sound On. Brian, I want to 347 00:19:21,440 --> 00:19:24,720 Speaker 1: ask you about rising prices and the meeting today of 348 00:19:24,760 --> 00:19:27,240 Speaker 1: the President's Competition Council. But we want to start with 349 00:19:27,840 --> 00:19:29,960 Speaker 1: the stock market today, which is not something we tend 350 00:19:30,000 --> 00:19:32,680 Speaker 1: to talk about. A roller coaster today, as we just heard, 351 00:19:33,359 --> 00:19:36,200 Speaker 1: and following steep losses the past couple of weeks this year, 352 00:19:36,200 --> 00:19:40,040 Speaker 1: really the major index is falling into correction territory. I 353 00:19:40,080 --> 00:19:42,840 Speaker 1: know President Biden says he does not obsess over the 354 00:19:42,840 --> 00:19:45,800 Speaker 1: stock market like certainly like his predecessor, but at what 355 00:19:45,840 --> 00:19:49,560 Speaker 1: point do you worry about volatility and losses on Wall 356 00:19:49,600 --> 00:19:53,640 Speaker 1: Street leading to less spending and less hiring. Well, look 357 00:19:53,680 --> 00:19:56,439 Speaker 1: at something that we monitor very closely, and obviously the 358 00:19:56,480 --> 00:19:59,600 Speaker 1: Treasure Department has an entire unit that focused on that 359 00:19:59,640 --> 00:20:01,840 Speaker 1: week day in close touch with them, particularly a day 360 00:20:01,880 --> 00:20:05,520 Speaker 1: like today where you see some additional trading volatility. But 361 00:20:05,560 --> 00:20:07,400 Speaker 1: today's a good example. A lot of dipper now works 362 00:20:07,640 --> 00:20:10,200 Speaker 1: back even the end of the day. What we try 363 00:20:10,240 --> 00:20:15,240 Speaker 1: to do is focus on the core drivers the real economy, UM, 364 00:20:15,320 --> 00:20:19,760 Speaker 1: and understand how our economic policy can help to improve 365 00:20:19,800 --> 00:20:23,600 Speaker 1: and accelerate those So UM, that's why we try to 366 00:20:23,640 --> 00:20:26,439 Speaker 1: wake up every morning and not focus on You know 367 00:20:26,520 --> 00:20:30,760 Speaker 1: that the movements heretofore of us and downs. That's why 368 00:20:30,760 --> 00:20:32,199 Speaker 1: you hear out of the White House. We don't know 369 00:20:32,280 --> 00:20:35,840 Speaker 1: comment on individual intra day trading or otherwise. UM. But 370 00:20:36,000 --> 00:20:37,840 Speaker 1: if you look and you take a step back, what 371 00:20:38,000 --> 00:20:41,840 Speaker 1: you see is really historic strength and household balance sheets, 372 00:20:41,960 --> 00:20:45,520 Speaker 1: historic strength in underlying economic growth, historic strength of the 373 00:20:45,600 --> 00:20:49,879 Speaker 1: labor market. All of those things are important and positive, 374 00:20:50,359 --> 00:20:52,199 Speaker 1: but they're in the context of an economy where we 375 00:20:52,240 --> 00:20:55,360 Speaker 1: still have some real challenges, and the questions we ask 376 00:20:55,400 --> 00:20:57,159 Speaker 1: ourselves is what can we be doing to try to 377 00:20:57,200 --> 00:20:59,760 Speaker 1: sustain that recovery in a way that goes at the 378 00:21:00,200 --> 00:21:02,760 Speaker 1: challenges that we're facing and make sure that you know 379 00:21:02,880 --> 00:21:05,520 Speaker 1: the ultimate you know, middle class families sitting around the 380 00:21:05,600 --> 00:21:09,040 Speaker 1: kitchen table um has the tools it needs to to 381 00:21:09,080 --> 00:21:10,840 Speaker 1: achieve its economical A lot of them, of course have 382 00:21:10,840 --> 00:21:13,160 Speaker 1: four own case. And I just ask if you worry 383 00:21:13,200 --> 00:21:15,400 Speaker 1: about a negative wealth effect not in a single day 384 00:21:15,400 --> 00:21:18,560 Speaker 1: of trading, but over a period of time. Look, I 385 00:21:18,600 --> 00:21:21,359 Speaker 1: think again, think about the context here. We have seen 386 00:21:21,560 --> 00:21:25,280 Speaker 1: historic increases in housing prices. We've seen you know, historic 387 00:21:25,359 --> 00:21:27,960 Speaker 1: increases it in in uh in the market over the 388 00:21:27,960 --> 00:21:30,480 Speaker 1: course of the last couple of years, indeed, and so 389 00:21:30,480 --> 00:21:33,800 Speaker 1: you're not losing over it. Obviously, the wealth effect is 390 00:21:33,840 --> 00:21:37,199 Speaker 1: one impact into the one impact into the economy. So 391 00:21:37,240 --> 00:21:39,560 Speaker 1: it's the labor market and our you know, our jobs 392 00:21:39,600 --> 00:21:43,440 Speaker 1: planned to full. Can people move to new job opportunities, 393 00:21:43,560 --> 00:21:47,959 Speaker 1: and particularly theft of the Americans of American people who 394 00:21:48,000 --> 00:21:49,960 Speaker 1: are not invested in the stock market because they don't 395 00:21:49,960 --> 00:21:52,280 Speaker 1: even have a four one K. How can we give 396 00:21:52,640 --> 00:21:56,200 Speaker 1: those people, those families more opportunities to grow and create wealth. 397 00:21:56,560 --> 00:21:59,760 Speaker 1: So all of those things factor into our overall economic 398 00:21:59,800 --> 00:22:01,639 Speaker 1: point of you. But we try to look at it, 399 00:22:01,680 --> 00:22:04,399 Speaker 1: you know, without getting focused on you know, the the 400 00:22:05,040 --> 00:22:08,080 Speaker 1: you know, every every minute, every severy today, well, on 401 00:22:08,119 --> 00:22:10,119 Speaker 1: the eve of the FED meeting this week, the President 402 00:22:10,200 --> 00:22:14,720 Speaker 1: today meeting with the White House Competition Council. Uh. I 403 00:22:14,760 --> 00:22:18,040 Speaker 1: know there have been some issues getting that council populated 404 00:22:18,080 --> 00:22:21,320 Speaker 1: here in terms of getting people approved on Capitol Hill 405 00:22:21,400 --> 00:22:24,359 Speaker 1: and so forth. About half the tasks the council I 406 00:22:24,400 --> 00:22:27,960 Speaker 1: understand has on its list involved independent agencies like FDC, 407 00:22:28,080 --> 00:22:31,600 Speaker 1: FCC and so forth, and those nominees are stalled in 408 00:22:31,680 --> 00:22:33,760 Speaker 1: the Senate right now? Does that affect your ability to 409 00:22:33,800 --> 00:22:37,760 Speaker 1: move forward on things like non compete clauses? I know 410 00:22:37,840 --> 00:22:40,800 Speaker 1: some of the other aims of the council was to 411 00:22:40,880 --> 00:22:43,919 Speaker 1: increase choices when it comes to Internet providers. Where does 412 00:22:43,960 --> 00:22:48,639 Speaker 1: all that stand? Sure? Well, this has been a really 413 00:22:48,720 --> 00:22:52,720 Speaker 1: historic effort across all of government and as you say, 414 00:22:52,760 --> 00:22:55,760 Speaker 1: the cabinet agencies, but also the independent agencies as well. 415 00:22:56,080 --> 00:22:59,199 Speaker 1: In July, we put out a historic executive order that 416 00:22:59,240 --> 00:23:03,919 Speaker 1: had seventy who specific actions, all based on a pretty 417 00:23:03,960 --> 00:23:08,080 Speaker 1: simple but important economic intuition, which is fair and open 418 00:23:08,119 --> 00:23:13,000 Speaker 1: competition is a fundamental ingredient of a healthy capitalist economy. UM. 419 00:23:13,040 --> 00:23:17,520 Speaker 1: It is really what drives better outcomes, lower prices, higher wages, 420 00:23:17,600 --> 00:23:21,640 Speaker 1: more innovation, more economic growth. That's the core of this. Now, 421 00:23:21,640 --> 00:23:25,879 Speaker 1: the seventy two actions are really about changing the dynamic 422 00:23:25,960 --> 00:23:28,560 Speaker 1: of the executive branch to look for places to promote 423 00:23:28,600 --> 00:23:32,119 Speaker 1: competition wherever we can. Over the course of that six months, 424 00:23:32,600 --> 00:23:35,640 Speaker 1: you know, we'll report today that we're on track on 425 00:23:35,680 --> 00:23:38,480 Speaker 1: all of those actions. Some of those we've seen very 426 00:23:38,520 --> 00:23:43,600 Speaker 1: practical and tangible outputs for a typical consumer UM something 427 00:23:43,720 --> 00:23:47,600 Speaker 1: like ending surprise medical building, which is a hassle and 428 00:23:47,640 --> 00:23:51,399 Speaker 1: can be an economic devastating economic hit for for families 429 00:23:51,400 --> 00:23:54,760 Speaker 1: who end up with somebody in the emergency room. Others 430 00:23:54,800 --> 00:23:57,920 Speaker 1: of these are longer term efforts where the steps we're 431 00:23:57,960 --> 00:24:01,240 Speaker 1: taking are really changing the way that UM a federal 432 00:24:01,280 --> 00:24:04,639 Speaker 1: agency operates, changes priorities as well. How do you pursue 433 00:24:04,680 --> 00:24:07,600 Speaker 1: those though, if you can't get these nominees set well, 434 00:24:07,680 --> 00:24:10,800 Speaker 1: the good news is if you look across the certainly 435 00:24:10,840 --> 00:24:13,959 Speaker 1: the cabinet agencies and most of the independent agencies, we 436 00:24:14,080 --> 00:24:17,520 Speaker 1: have strong teams in place and either have gotten confirmed 437 00:24:17,880 --> 00:24:21,080 Speaker 1: nominees or acting heads that are able to move forward. 438 00:24:21,320 --> 00:24:23,639 Speaker 1: You're right into summit. You know, in a couple of 439 00:24:23,680 --> 00:24:28,639 Speaker 1: places we need the Senate to move and confirm nominees. 440 00:24:29,000 --> 00:24:30,840 Speaker 1: But you know I will. I'll be sitting around the 441 00:24:30,880 --> 00:24:33,919 Speaker 1: table with seventeen different either cabinet heads or heads of 442 00:24:33,920 --> 00:24:36,720 Speaker 1: independent agencies, and in most cases they've got both the 443 00:24:36,760 --> 00:24:38,800 Speaker 1: tools and the resources they need to play for Well, 444 00:24:38,840 --> 00:24:40,640 Speaker 1: I know where time is really sure, Bryan, So I'd 445 00:24:40,640 --> 00:24:42,880 Speaker 1: love to just squeeze a couple of questions in here 446 00:24:42,920 --> 00:24:46,399 Speaker 1: as well about legislation aimed at competing more with China, 447 00:24:46,480 --> 00:24:49,240 Speaker 1: including the Chips acts already passed the Senate. I spoke 448 00:24:49,280 --> 00:24:52,399 Speaker 1: with Senator shared Brown last week about the new Intel plant. 449 00:24:52,440 --> 00:24:54,760 Speaker 1: You also spoke with Bloomberg about it. To be clear, though, 450 00:24:54,760 --> 00:24:57,560 Speaker 1: even if this passes it becomes law, wouldn't it take 451 00:24:57,640 --> 00:25:00,480 Speaker 1: years for new foundries to begin operating? How do you 452 00:25:00,560 --> 00:25:02,639 Speaker 1: deal with the ship shortage? Now, I guess is the question. 453 00:25:03,760 --> 00:25:05,640 Speaker 1: So it's a great question. And we had the CEO 454 00:25:05,680 --> 00:25:08,919 Speaker 1: of Intel here as well as Share Brown and Senator 455 00:25:09,160 --> 00:25:13,919 Speaker 1: Senator Portman on Friday. A big sea change in the 456 00:25:14,160 --> 00:25:17,280 Speaker 1: both willingness and the capability of investing domestically in the 457 00:25:17,359 --> 00:25:21,959 Speaker 1: United States to build industrial resilience around semiconductors. UH and 458 00:25:22,080 --> 00:25:24,959 Speaker 1: so yes, that takes time. But the good news is 459 00:25:25,000 --> 00:25:28,720 Speaker 1: because the President acted almost immediately after taking office. The 460 00:25:28,800 --> 00:25:31,280 Speaker 1: twenty billion that Intel announced last Friday comes on the 461 00:25:31,320 --> 00:25:34,200 Speaker 1: top of eighty billion in investment by companies firms to 462 00:25:34,280 --> 00:25:39,000 Speaker 1: invest domestically last year. I think in this legislation, right, 463 00:25:39,280 --> 00:25:41,800 Speaker 1: fifty two billion from the legislation, which is really intended 464 00:25:41,840 --> 00:25:45,240 Speaker 1: to provide the found work to leverage multiples of that 465 00:25:45,359 --> 00:25:47,720 Speaker 1: in private capital. So look, it takes more than a 466 00:25:47,800 --> 00:25:49,639 Speaker 1: day or a week or a month to get this going. 467 00:25:49,800 --> 00:25:52,480 Speaker 1: But the sooner the more we act with urgency around that, 468 00:25:52,560 --> 00:25:56,600 Speaker 1: the sooner we'll start to see, uh, those impacts. We're 469 00:25:56,600 --> 00:25:58,479 Speaker 1: not waiting though, and I would say that you know, 470 00:25:58,560 --> 00:26:01,080 Speaker 1: our Department of Commerce and the White House is working 471 00:26:01,520 --> 00:26:05,200 Speaker 1: diplomatically internationally as well as with major companies to make 472 00:26:05,240 --> 00:26:07,600 Speaker 1: sure that we have more transparency in the supply chain 473 00:26:07,840 --> 00:26:09,879 Speaker 1: and the U S companies are getting a fair shake 474 00:26:10,240 --> 00:26:13,000 Speaker 1: with the existing stock of semiconductors that's being made. As 475 00:26:13,040 --> 00:26:16,199 Speaker 1: you know, we're principally reliant on foreign suppliers. That's a 476 00:26:16,200 --> 00:26:17,960 Speaker 1: problem that we're going to solve over the next couple 477 00:26:17,960 --> 00:26:19,479 Speaker 1: of years. But over the next couple of months, we're 478 00:26:19,480 --> 00:26:21,440 Speaker 1: going to try to make sure that there's enough transparency 479 00:26:21,440 --> 00:26:24,600 Speaker 1: in the market that our businesses are getting their fair 480 00:26:24,640 --> 00:26:26,560 Speaker 1: fare of the allocations. You know, we have just a 481 00:26:26,600 --> 00:26:28,520 Speaker 1: minute left, Brian, I just want to ask you quickly 482 00:26:28,520 --> 00:26:30,920 Speaker 1: about the FED, not what it's doing tomorrow or this week, 483 00:26:30,920 --> 00:26:33,760 Speaker 1: but over the course of this year. As an economist, 484 00:26:33,760 --> 00:26:36,320 Speaker 1: how worried are you about this FED hits the gas 485 00:26:36,359 --> 00:26:40,080 Speaker 1: too hard that that the heightening regime leads to a recession. 486 00:26:42,320 --> 00:26:44,560 Speaker 1: The thing that we can do here at the White 487 00:26:44,560 --> 00:26:48,320 Speaker 1: House that the President can do is nominate really high 488 00:26:48,400 --> 00:26:51,639 Speaker 1: quality individuals to serve on the Federal the Board of 489 00:26:51,680 --> 00:26:55,760 Speaker 1: Governors of the Federal Reserve, and underscore the independence of 490 00:26:55,800 --> 00:26:58,760 Speaker 1: the institution to make those types of choices. All these 491 00:26:58,840 --> 00:27:02,520 Speaker 1: choices are difficult for a policy and monetary policy. But 492 00:27:02,640 --> 00:27:05,280 Speaker 1: what we can do most effectively, as as you say, 493 00:27:05,320 --> 00:27:07,400 Speaker 1: get those nominees out there, and hopefully the Senate will 494 00:27:07,440 --> 00:27:09,600 Speaker 1: move to confirm all five of the nominees that we've 495 00:27:09,600 --> 00:27:12,680 Speaker 1: put forward without delay, and then give them the independence 496 00:27:12,680 --> 00:27:16,280 Speaker 1: to operates. Certainly, I think it's appropriate as the Board 497 00:27:16,400 --> 00:27:21,040 Speaker 1: and sure Power have signaled um the recalibration that is underway, UM. 498 00:27:21,160 --> 00:27:23,720 Speaker 1: But we're going to give them the space to make 499 00:27:23,760 --> 00:27:27,760 Speaker 1: those judgments across time in the word about that though, 500 00:27:27,760 --> 00:27:30,880 Speaker 1: you are giving them room to breathe. I will tell 501 00:27:30,920 --> 00:27:33,119 Speaker 1: you I'm worried about everything. That's part of my jobs 502 00:27:33,119 --> 00:27:34,800 Speaker 1: to wake up in the morning and worry about everything. 503 00:27:34,840 --> 00:27:38,640 Speaker 1: But I guess what I would say is I what 504 00:27:38,720 --> 00:27:42,280 Speaker 1: we can most constructively do in the moment we find 505 00:27:42,280 --> 00:27:45,919 Speaker 1: ourselves in is reinforced that those independent judgments on the 506 00:27:45,920 --> 00:27:51,480 Speaker 1: monetary policy side are independent, and certainly the recalibration underway 507 00:27:51,560 --> 00:27:54,960 Speaker 1: is appropriate. That is, that's that's appropriate. They will make 508 00:27:55,000 --> 00:27:57,640 Speaker 1: those judgments and we will focus on what we can 509 00:27:57,680 --> 00:28:01,440 Speaker 1: work on, uh with the executive tools we have in 510 00:28:01,520 --> 00:28:04,800 Speaker 1: place and working with Congress. That's like what our Competition 511 00:28:04,840 --> 00:28:07,000 Speaker 1: Council work is all about, is using the tools that 512 00:28:07,119 --> 00:28:10,800 Speaker 1: executive branch to expand the productive capacity the economy so 513 00:28:10,840 --> 00:28:14,720 Speaker 1: that as we come through this period, we actually can 514 00:28:14,880 --> 00:28:18,480 Speaker 1: see more innovation, more job growth, and more capacity for 515 00:28:18,520 --> 00:28:21,080 Speaker 1: growth in the economy. Brian Diese, we thank you for 516 00:28:21,119 --> 00:28:24,080 Speaker 1: coming back to see us on Bloomberg. Thank you, gret 517 00:28:24,119 --> 00:28:28,399 Speaker 1: to cover that much ground with the President's Economic Advisor 518 00:28:28,960 --> 00:28:33,080 Speaker 1: Brian Deese. The Competition Council meeting this hour. As I 519 00:28:33,160 --> 00:28:35,399 Speaker 1: mentioned the President that when you heard him, we played 520 00:28:35,400 --> 00:28:38,400 Speaker 1: a quick bite from him earlier this hour. They allowed 521 00:28:38,440 --> 00:28:41,280 Speaker 1: the press into the room, a little pool spray in there, 522 00:28:42,040 --> 00:28:45,480 Speaker 1: and now this has become an issue, a hot Mike moment. 523 00:28:46,040 --> 00:28:48,240 Speaker 1: Let's get the panel back in first. I would like 524 00:28:48,320 --> 00:28:51,280 Speaker 1: to hear from Rick and Genie following our conversation with 525 00:28:51,320 --> 00:28:56,520 Speaker 1: Brian d s Bloomberg Politics contributors Genie Shenzano and Rick Davis. 526 00:28:56,800 --> 00:28:59,120 Speaker 1: Does it sound to you, Rick, like a white house 527 00:28:59,160 --> 00:29:02,760 Speaker 1: that has its is around this inflation story? As we 528 00:29:02,800 --> 00:29:05,120 Speaker 1: wait to hear from the Fed this week, this competition 529 00:29:05,200 --> 00:29:08,200 Speaker 1: Council will be going after as he said, seventy two 530 00:29:08,240 --> 00:29:12,280 Speaker 1: different items. Is that a comprehensive approach? You know, I 531 00:29:12,280 --> 00:29:16,080 Speaker 1: think this is just throwing a blanket over a roaring fire, right. 532 00:29:16,160 --> 00:29:19,800 Speaker 1: I mean, there are so many different things that you 533 00:29:19,840 --> 00:29:22,840 Speaker 1: can do regarding inflation, and it looks like they're gonna 534 00:29:22,920 --> 00:29:25,680 Speaker 1: they're not gonna differentiate. They're just gonna throw the kitchen 535 00:29:25,720 --> 00:29:28,360 Speaker 1: sink and everything they think they can do. Uh, none 536 00:29:28,360 --> 00:29:30,880 Speaker 1: of it, um, you know, probably is going to be 537 00:29:30,880 --> 00:29:33,880 Speaker 1: purported to have a significant impact when you look at 538 00:29:33,920 --> 00:29:37,120 Speaker 1: grocery prices and gas prices. The things they are doing 539 00:29:37,240 --> 00:29:40,720 Speaker 1: can chip away at that, but I think they realize 540 00:29:40,760 --> 00:29:43,000 Speaker 1: they have to be seen as taking action. And I 541 00:29:43,040 --> 00:29:45,920 Speaker 1: think this is the message out of the Council today 542 00:29:46,280 --> 00:29:48,600 Speaker 1: is Hey, we're taking action. And some of it's gonna 543 00:29:48,600 --> 00:29:52,040 Speaker 1: take credit for things that they've already done unrelated to inflation, 544 00:29:52,160 --> 00:29:54,240 Speaker 1: and the other things are going to be reprogrammed into 545 00:29:54,280 --> 00:29:57,320 Speaker 1: the inflation bucket. But that's a pretty big bucket, Jennie. 546 00:29:57,320 --> 00:29:58,959 Speaker 1: The White House never wanted to get into a situation 547 00:29:59,040 --> 00:30:01,320 Speaker 1: where they were taking read it for Wall Street because 548 00:30:01,360 --> 00:30:04,280 Speaker 1: that can that can come around and bite you as 549 00:30:04,400 --> 00:30:08,640 Speaker 1: as we've seen the markets recently head lower. Should however, 550 00:30:08,680 --> 00:30:11,120 Speaker 1: this White House to be more concerned about the volatility, 551 00:30:11,160 --> 00:30:14,120 Speaker 1: about the major losses with the FED begins to tighten. 552 00:30:14,920 --> 00:30:16,960 Speaker 1: I think they are very concerned, and I think we 553 00:30:17,120 --> 00:30:19,200 Speaker 1: just heard Brian D's allude to that he's probably not 554 00:30:19,200 --> 00:30:22,080 Speaker 1: getting much sleep these days. He's got his head wrapped 555 00:30:22,080 --> 00:30:24,680 Speaker 1: around so many things. But I do think he's right 556 00:30:24,720 --> 00:30:27,680 Speaker 1: in terms of telling you that this is one piece 557 00:30:27,880 --> 00:30:30,120 Speaker 1: of what they're trying to do. They don't have a 558 00:30:30,160 --> 00:30:33,200 Speaker 1: you know, enormous number of tools to fight inflation. They 559 00:30:33,240 --> 00:30:36,800 Speaker 1: do understand that If they aren't able to turn the 560 00:30:36,840 --> 00:30:39,800 Speaker 1: tide on inflation, it is going to be a game 561 00:30:39,880 --> 00:30:42,200 Speaker 1: ender for them in the mid terms. So they're doing 562 00:30:42,200 --> 00:30:44,040 Speaker 1: what they can. This is one of the tools they 563 00:30:44,040 --> 00:30:47,280 Speaker 1: have at their disposal. It's not going to address everything, 564 00:30:47,560 --> 00:30:50,280 Speaker 1: but from the start of creating this council, they talked 565 00:30:50,280 --> 00:30:53,400 Speaker 1: about the fact that they may be able to addressed 566 00:30:53,400 --> 00:30:56,040 Speaker 1: with certain extent, you know, some of what has happened 567 00:30:56,160 --> 00:30:58,560 Speaker 1: with you know, competition or the lack of it in 568 00:30:58,640 --> 00:31:02,040 Speaker 1: areas like food and energy. So they're trying to address 569 00:31:02,160 --> 00:31:04,400 Speaker 1: some of that, but there's many other things they need 570 00:31:04,440 --> 00:31:06,720 Speaker 1: to do at the same time, and I think that 571 00:31:06,760 --> 00:31:09,120 Speaker 1: we're seeing them do that. But they do want to 572 00:31:09,160 --> 00:31:11,840 Speaker 1: be seen as using the tools that they have, not 573 00:31:12,000 --> 00:31:14,920 Speaker 1: legislative tools, but of course the tools the executive has, 574 00:31:15,080 --> 00:31:17,200 Speaker 1: those are limited, but they're using them. As for the 575 00:31:17,240 --> 00:31:19,360 Speaker 1: hot mic moment that I mentioned, reporters are on their 576 00:31:19,400 --> 00:31:21,880 Speaker 1: way out. You know, normally this this happens that you 577 00:31:21,960 --> 00:31:24,840 Speaker 1: hear everyone starts screaming, the press handlers go thank you, 578 00:31:25,000 --> 00:31:27,520 Speaker 1: thank you, thank you, and all the reporters there was 579 00:31:27,560 --> 00:31:30,959 Speaker 1: the president of it, so that happened again here. Presidents 580 00:31:31,080 --> 00:31:33,120 Speaker 1: has stopped taking a lot of these, by the way, 581 00:31:33,200 --> 00:31:35,120 Speaker 1: Usually he'll just but in this case, he's sitting there 582 00:31:35,720 --> 00:31:39,680 Speaker 1: with the competition council, just waiting for the wranglers to 583 00:31:39,760 --> 00:31:41,840 Speaker 1: get the reporters out of the room, and he got 584 00:31:41,880 --> 00:31:43,840 Speaker 1: caught on a mic say and something not too nice 585 00:31:43,880 --> 00:31:45,800 Speaker 1: about it was. I guess it was Peter Doocey, the 586 00:31:45,840 --> 00:31:49,040 Speaker 1: Fox News reporter, who you will hear in this cut. 587 00:31:49,680 --> 00:31:51,400 Speaker 1: We don't want to dwell too much on this, but 588 00:31:51,440 --> 00:31:53,800 Speaker 1: there is there are some important questions to be asked. 589 00:31:53,840 --> 00:31:57,000 Speaker 1: Listen to President Biden as the reporters are being ushered 590 00:31:57,000 --> 00:32:10,480 Speaker 1: out of the room. Okay, they called the reporter a 591 00:32:10,600 --> 00:32:14,040 Speaker 1: stupid s O B. And apparently it was made pretty 592 00:32:14,040 --> 00:32:16,240 Speaker 1: clear to him immediately they cut the sound at that point. 593 00:32:16,280 --> 00:32:18,520 Speaker 1: That's the end of it. Uh. This is gonna make 594 00:32:18,600 --> 00:32:21,120 Speaker 1: news headlines for the rest of the week. Most likely 595 00:32:21,320 --> 00:32:26,680 Speaker 1: reminds me. Reminds me of another administration big time. Uh. 596 00:32:26,720 --> 00:32:30,200 Speaker 1: I wonder, though, Rick, as you consider President Biden. He 597 00:32:30,320 --> 00:32:32,840 Speaker 1: got testy in that news conference last week. He has 598 00:32:32,880 --> 00:32:35,640 Speaker 1: started showing his teeth a little bit when reporters ask 599 00:32:35,960 --> 00:32:38,200 Speaker 1: questions he thinks they're stupid. I want to ask you 600 00:32:38,200 --> 00:32:40,280 Speaker 1: about the way he's handling the media. But is this 601 00:32:40,280 --> 00:32:43,400 Speaker 1: White House being covered fairly? Look, I think the White 602 00:32:43,400 --> 00:32:45,880 Speaker 1: House is being covered exactly the same way all white 603 00:32:45,880 --> 00:32:47,880 Speaker 1: houses have been covered. And and and it's not a 604 00:32:47,920 --> 00:32:50,000 Speaker 1: fairness question, right, I mean, that's why they call it 605 00:32:50,040 --> 00:32:52,120 Speaker 1: the free press. They can they can cover it anywhere 606 00:32:52,160 --> 00:32:54,560 Speaker 1: they want to. I think the public gets to decide 607 00:32:54,560 --> 00:32:56,840 Speaker 1: whether or not it's it's fair or not. And uh, 608 00:32:56,880 --> 00:32:59,560 Speaker 1: but like these are unforced errors. This is you can't 609 00:32:59,600 --> 00:33:04,640 Speaker 1: allow yourself to be drawn into what is clearly an 610 00:33:04,640 --> 00:33:07,080 Speaker 1: effort to try and got you. And in this case, 611 00:33:07,160 --> 00:33:09,720 Speaker 1: they got him, and he responded to something you shouldn't 612 00:33:09,760 --> 00:33:12,240 Speaker 1: have on a hot mic. And that's that's gonna be 613 00:33:12,320 --> 00:33:16,240 Speaker 1: this week's YouTube moments. He's just he's feeding the bears, Genie. 614 00:33:16,280 --> 00:33:18,440 Speaker 1: That's going to keep the clock moving at Fox for 615 00:33:18,440 --> 00:33:21,120 Speaker 1: the next several days. Oh, this will this will probably 616 00:33:21,120 --> 00:33:25,719 Speaker 1: go seven for several days on several media outlets. And 617 00:33:25,760 --> 00:33:28,560 Speaker 1: to your point, presidents have had I mean, you know, 618 00:33:28,640 --> 00:33:30,880 Speaker 1: it wasn't that long ago. We all remember about ten 619 00:33:31,000 --> 00:33:34,200 Speaker 1: years ago when when Obama was caught on a hot 620 00:33:34,240 --> 00:33:37,120 Speaker 1: mic talking to the Russian president about after his election 621 00:33:37,160 --> 00:33:40,400 Speaker 1: of lab more flexibility. You know, most presidents are many 622 00:33:40,440 --> 00:33:43,320 Speaker 1: people in public life get caught in these hot mics. Um, 623 00:33:43,520 --> 00:33:46,520 Speaker 1: you know the president, you know has long. President Biden 624 00:33:46,760 --> 00:33:50,360 Speaker 1: has long had a temper. Anybody who's followed Joe Biden, 625 00:33:50,600 --> 00:33:52,840 Speaker 1: he has had a temper from the time he started 626 00:33:52,840 --> 00:33:55,440 Speaker 1: in public life. So this is not a surprise. But 627 00:33:55,600 --> 00:33:58,640 Speaker 1: he does have to try to control this because, let's 628 00:33:58,680 --> 00:34:02,200 Speaker 1: be fair, at the question asked, was you know it 629 00:34:02,320 --> 00:34:04,200 Speaker 1: was a question that should be asked. It's a question 630 00:34:04,200 --> 00:34:06,400 Speaker 1: about inflation. He may not like the question, he may 631 00:34:06,680 --> 00:34:09,000 Speaker 1: like the question er, but he's got to handle it better. 632 00:34:09,480 --> 00:34:11,120 Speaker 1: Rick and Jennie with us for the rest of the hour. 633 00:34:11,160 --> 00:34:13,000 Speaker 1: As we spent some time with the panel on a Monday, 634 00:34:13,040 --> 00:34:15,680 Speaker 1: I'm glad you're with us on the fastest hour in politics. 635 00:34:16,960 --> 00:34:20,600 Speaker 1: So the state of Virginia, and by that I don't 636 00:34:20,640 --> 00:34:23,480 Speaker 1: only mean northern Virginia, outside the nation's capital, but the 637 00:34:23,520 --> 00:34:27,400 Speaker 1: state of Virginia with its new governor, Glen Youncan, seems 638 00:34:27,400 --> 00:34:31,520 Speaker 1: to quickly be on its way to becoming ground zero 639 00:34:31,760 --> 00:34:35,680 Speaker 1: for the argument over mandates, and specifically, in this case, 640 00:34:36,320 --> 00:34:39,279 Speaker 1: the mask mandate for schools. As I read on the 641 00:34:39,320 --> 00:34:43,239 Speaker 1: Washington Post, seven now seven school boards are suing to 642 00:34:43,239 --> 00:34:46,759 Speaker 1: stop Governor Youngcan's mask optional order on the day it 643 00:34:46,840 --> 00:34:50,040 Speaker 1: takes effect. This started with a couple of counties. Fairfax 644 00:34:50,080 --> 00:34:54,000 Speaker 1: County public schools outside of Washington, uh still in the 645 00:34:54,280 --> 00:34:57,080 Speaker 1: biggest district in the state, is leading this, but there 646 00:34:57,080 --> 00:34:59,840 Speaker 1: are several others now and it came up today in 647 00:35:00,080 --> 00:35:03,240 Speaker 1: White House press briefing. Maybe this is why President Biden 648 00:35:03,280 --> 00:35:08,120 Speaker 1: was upset with Doocy. He asked a question of Press 649 00:35:08,160 --> 00:35:11,200 Speaker 1: Secretary Jen Psaki about this because there's been a back 650 00:35:11,239 --> 00:35:13,360 Speaker 1: and forth year. Saki's kids go to school in Arlington. 651 00:35:13,440 --> 00:35:17,279 Speaker 1: She had been tweeting about it. The idea here is, 652 00:35:17,320 --> 00:35:21,800 Speaker 1: though he wants this to be optional, these school districts 653 00:35:21,800 --> 00:35:25,279 Speaker 1: say no, we're gonna sue to keep this mandate. And 654 00:35:25,320 --> 00:35:26,960 Speaker 1: Deucey is trying to get to the bottom of it 655 00:35:27,000 --> 00:35:29,960 Speaker 1: with Jen Psaki here, he is what we're advising school 656 00:35:29,960 --> 00:35:34,040 Speaker 1: districts on is to abide by public health guidelines and 657 00:35:34,120 --> 00:35:37,280 Speaker 1: follow public health guidelines, and it's about keeping an entire 658 00:35:37,320 --> 00:35:39,879 Speaker 1: community safe. And those are the decisions that are being 659 00:35:40,320 --> 00:35:43,280 Speaker 1: that people should focus on making. So that it's crystal 660 00:35:43,320 --> 00:35:47,239 Speaker 1: clear for anybody watching. You guys think that ultimately in 661 00:35:47,280 --> 00:35:51,360 Speaker 1: this conflict between school board members and parents. The school 662 00:35:51,360 --> 00:35:54,960 Speaker 1: board members should have more of a say, and what 663 00:35:55,160 --> 00:35:57,680 Speaker 1: essentially not what I said. I think everybody should abide 664 00:35:57,680 --> 00:36:00,359 Speaker 1: by public health guidelines, not just to keep their own 665 00:36:00,440 --> 00:36:03,920 Speaker 1: kids safe, but keep their their school community safe, whether 666 00:36:03,960 --> 00:36:09,040 Speaker 1: it's teachers, classmates, administrators, others in schools. This is going 667 00:36:09,080 --> 00:36:12,680 Speaker 1: to be a major issue on the midterm campaign trail, 668 00:36:13,920 --> 00:36:17,520 Speaker 1: as pretty much everything Governor young Can is doing is 669 00:36:17,560 --> 00:36:21,080 Speaker 1: becoming an issue. Let's hear about it from the panel, 670 00:36:21,160 --> 00:36:24,360 Speaker 1: Rick and Genie or here Bloomberg Politics contributors Genie Schanzano, 671 00:36:24,560 --> 00:36:27,279 Speaker 1: Rick Davis, Rick, you live in Virginia, you certainly know 672 00:36:27,360 --> 00:36:32,160 Speaker 1: the area very well. Also, Glenn Youngcan is just getting 673 00:36:32,200 --> 00:36:35,399 Speaker 1: started in these lawsuits. The seven were filed the day 674 00:36:35,440 --> 00:36:38,919 Speaker 1: that this mandate took effect. Is this going to set 675 00:36:38,920 --> 00:36:41,080 Speaker 1: precedent for the nation. Is Virginia going to be the 676 00:36:41,080 --> 00:36:43,960 Speaker 1: place that has decided You know, each of these states 677 00:36:43,960 --> 00:36:48,400 Speaker 1: have a different constitution, and in the Virginia constitution, it 678 00:36:48,560 --> 00:36:52,680 Speaker 1: actually gives the responsibility to the school board to make 679 00:36:52,680 --> 00:36:55,960 Speaker 1: decisions based on public health. And so in this case, 680 00:36:56,239 --> 00:37:00,479 Speaker 1: sure it sets up nicely for the drama that Youngan 681 00:37:00,560 --> 00:37:03,759 Speaker 1: wants to create. Because he ran his campaign on basically 682 00:37:03,840 --> 00:37:07,680 Speaker 1: saying that parents should have ultimate control on the curriculum 683 00:37:07,800 --> 00:37:10,400 Speaker 1: and what happens in the school, regardless of what the 684 00:37:10,440 --> 00:37:13,640 Speaker 1: state constitution says. Uh. It's a it's a real twist 685 00:37:13,719 --> 00:37:17,360 Speaker 1: on the Republican orthodoxy because for the last thirty years, 686 00:37:17,920 --> 00:37:21,400 Speaker 1: Republicans wanted school board decisions because because we could compete 687 00:37:21,480 --> 00:37:24,319 Speaker 1: in school boards, take them over and then and then 688 00:37:24,480 --> 00:37:27,040 Speaker 1: use that as a vehicle. Now it's even one step 689 00:37:27,120 --> 00:37:30,040 Speaker 1: closer to the family, which is mothers and fathers should 690 00:37:30,080 --> 00:37:32,279 Speaker 1: make these decisions. What do you think, Jennie, the way 691 00:37:32,280 --> 00:37:35,080 Speaker 1: this reads, By the way, in Virginia's Constitution, Article eight, 692 00:37:35,120 --> 00:37:38,279 Speaker 1: section seven, as I read in the Post, asserts that 693 00:37:38,320 --> 00:37:42,040 Speaker 1: the supervision of schools in each school division shall be 694 00:37:42,160 --> 00:37:45,600 Speaker 1: vested in a school board. Lawyers also say young cons 695 00:37:45,640 --> 00:37:49,480 Speaker 1: order contradicts the state law requiring school districts to follow 696 00:37:49,480 --> 00:37:52,520 Speaker 1: federal health guidelines. So let's have it. How's this going 697 00:37:52,600 --> 00:37:56,120 Speaker 1: to turn out? Well, that's right. That was spree and 698 00:37:56,200 --> 00:37:59,360 Speaker 1: that was one aspect of this lawsuit along with the constitution. 699 00:37:59,520 --> 00:38:02,480 Speaker 1: And what we the school districts and the school boards 700 00:38:02,520 --> 00:38:06,080 Speaker 1: are fearing is chaos as parents come to school some 701 00:38:06,640 --> 00:38:09,520 Speaker 1: masked Uh, saying they're following the school districts and some 702 00:38:09,640 --> 00:38:13,160 Speaker 1: unmasked saying they're following the governor. So this certainly does 703 00:38:13,320 --> 00:38:15,720 Speaker 1: need to be clarified. It is unfair to the parents, 704 00:38:15,719 --> 00:38:18,080 Speaker 1: it's unfair to the teachers, and most importantly, it's unfair 705 00:38:18,120 --> 00:38:20,800 Speaker 1: to the school children in terms of what they're supposed 706 00:38:20,840 --> 00:38:24,160 Speaker 1: to be doing. And you know, I do think that 707 00:38:24,200 --> 00:38:26,919 Speaker 1: as you look at the state constitution and you look 708 00:38:26,960 --> 00:38:30,200 Speaker 1: at the state law, that it does look like he 709 00:38:30,280 --> 00:38:34,319 Speaker 1: may have overhea being the governor. Governor overstepped his powers here, 710 00:38:34,640 --> 00:38:36,799 Speaker 1: but the courts in Virginia are going to have to 711 00:38:36,840 --> 00:38:39,880 Speaker 1: decide that well they are. And the school boards joining Fairfax, 712 00:38:40,000 --> 00:38:42,319 Speaker 1: I should mention if you don't have to live there 713 00:38:42,320 --> 00:38:45,640 Speaker 1: to have heard of some of these places, Arlington, Alexandria, 714 00:38:45,719 --> 00:38:50,320 Speaker 1: Falls Church, Prince William County, Richmond Public Schools, the Capital 715 00:38:50,920 --> 00:38:53,440 Speaker 1: seven boards out with the statements is the school divisions 716 00:38:53,600 --> 00:38:55,960 Speaker 1: need to continue to preserve their authority to protect and 717 00:38:56,000 --> 00:38:59,320 Speaker 1: serve all students. Will be tracking this. This really gets 718 00:38:59,320 --> 00:39:01,320 Speaker 1: to the heart of It's gonna be a huge issue 719 00:39:01,360 --> 00:39:03,680 Speaker 1: on the campaign trail, and it certainly was in the 720 00:39:03,760 --> 00:39:06,360 Speaker 1: Virginia gubernatorial race. It really cracked this open as a 721 00:39:06,480 --> 00:39:09,400 Speaker 1: national issue, which is to say, as Rick referred to 722 00:39:09,840 --> 00:39:12,399 Speaker 1: the amount of say that parents have in the way 723 00:39:12,440 --> 00:39:15,399 Speaker 1: their kids are educated and in this case, how they're 724 00:39:15,560 --> 00:39:18,320 Speaker 1: I guess personal health is managed at school as well, 725 00:39:18,360 --> 00:39:22,360 Speaker 1: but impact on school decisions by parents as opposed to 726 00:39:22,400 --> 00:39:24,799 Speaker 1: what happened today in Boston. I don't know if you 727 00:39:24,840 --> 00:39:28,640 Speaker 1: guys heard Michelle wi with the new mayor going forth 728 00:39:28,800 --> 00:39:33,480 Speaker 1: with a worker vaccine mandate. This is for for public workers. 729 00:39:33,719 --> 00:39:37,280 Speaker 1: Have the fire department showed up today as she was outside. 730 00:39:37,320 --> 00:39:39,360 Speaker 1: I think we have tape of that. She was outside 731 00:39:39,560 --> 00:39:43,479 Speaker 1: uh City Hall preparing to hold a news conference, and boy, 732 00:39:43,520 --> 00:39:50,920 Speaker 1: the crowd listen to this. Let us work members of 733 00:39:50,920 --> 00:39:55,720 Speaker 1: the fire department chanting outside city Hall. The Boston City 734 00:39:55,760 --> 00:40:00,759 Speaker 1: employee vaccine mandate mandate, UH saw it's dead line extended 735 00:40:00,760 --> 00:40:02,600 Speaker 1: by a week. It brings us back to what we 736 00:40:02,640 --> 00:40:06,680 Speaker 1: saw in New York here, though, Rick, the politicians are 737 00:40:06,719 --> 00:40:10,480 Speaker 1: getting into some very dangerous waters here when it comes 738 00:40:10,520 --> 00:40:14,759 Speaker 1: to mandates for not just masks, but vaccines. How is 739 00:40:14,840 --> 00:40:16,719 Speaker 1: this going to shake out at the end of the year. 740 00:40:16,760 --> 00:40:18,800 Speaker 1: I feel like we have a you know, this pot 741 00:40:18,840 --> 00:40:20,800 Speaker 1: is starting to boil here as we had for the 742 00:40:20,840 --> 00:40:24,080 Speaker 1: mid terms. Yeah, I think you're entirely right, And thank 743 00:40:24,120 --> 00:40:26,160 Speaker 1: you for that clip. It's good to hear a nice 744 00:40:26,200 --> 00:40:29,560 Speaker 1: protest every now show. Uh and uh and and look, 745 00:40:29,600 --> 00:40:32,560 Speaker 1: I do think it's a dynamic that politicians in every 746 00:40:32,600 --> 00:40:35,560 Speaker 1: jurisdiction have to be keenly aware of, right. I mean, 747 00:40:35,840 --> 00:40:37,760 Speaker 1: we were just talking about young and fighting a mass 748 00:40:37,760 --> 00:40:40,319 Speaker 1: mandate in schools. Then maybe in six months nobody will 749 00:40:40,360 --> 00:40:43,279 Speaker 1: care about because we'll be beyond a mass mandate. Uh. 750 00:40:43,320 --> 00:40:46,520 Speaker 1: And then this is a very similar situation. So because 751 00:40:46,640 --> 00:40:49,880 Speaker 1: the pandemic is so dynamic, and we we actually hope 752 00:40:49,920 --> 00:40:52,920 Speaker 1: for a situation where all these things can be unraveled, 753 00:40:52,960 --> 00:40:58,080 Speaker 1: these these impingements on our freedoms. Uh, that you kind 754 00:40:58,080 --> 00:41:01,359 Speaker 1: of worry that many of these politicians could break their 755 00:41:01,400 --> 00:41:04,160 Speaker 1: pick on some of these guidelines, only to be undermined 756 00:41:04,200 --> 00:41:07,440 Speaker 1: by the success of fighting a pandemic. Well, is this 757 00:41:07,520 --> 00:41:11,680 Speaker 1: worth Michelle Woo's time as the new mayor of Boston, Genie, 758 00:41:11,719 --> 00:41:14,680 Speaker 1: You would think that with liberal politics in certain corners 759 00:41:14,719 --> 00:41:18,160 Speaker 1: at least of Massachusetts, this would be very popular because 760 00:41:18,200 --> 00:41:21,880 Speaker 1: there's also a vaccine mandate there in Boston for restaurants 761 00:41:21,960 --> 00:41:24,600 Speaker 1: like like here in New York as well. Yeah, you 762 00:41:24,640 --> 00:41:27,680 Speaker 1: would think, but having lived there and I know you did, 763 00:41:27,840 --> 00:41:30,879 Speaker 1: and you know it well, it is not quite as 764 00:41:31,000 --> 00:41:34,839 Speaker 1: liberal in Boston as some people imagine from the outside. 765 00:41:34,960 --> 00:41:39,760 Speaker 1: You have a very strong population devoted to civil liberties 766 00:41:39,880 --> 00:41:42,799 Speaker 1: going back to well before the Founding, and much of 767 00:41:42,800 --> 00:41:45,440 Speaker 1: the Founding occurred there. So you know, to me, this 768 00:41:45,520 --> 00:41:48,080 Speaker 1: is not a surprise in Boston or elsewhere. This is 769 00:41:48,120 --> 00:41:50,640 Speaker 1: part of our history. And these debates will carry on, 770 00:41:50,719 --> 00:41:54,080 Speaker 1: whether masks, vaccines or something else. We're gonna keep following 771 00:41:54,080 --> 00:41:56,160 Speaker 1: these debates too, because at some point there will be 772 00:41:56,200 --> 00:41:59,399 Speaker 1: critical masks. It's going to play already is playing into 773 00:41:59,400 --> 00:42:02,840 Speaker 1: the national conversation in the midterm election year. Rick and Jenny, 774 00:42:02,920 --> 00:42:05,960 Speaker 1: thanks as ever Bloomberg Politics contributors and our panel on 775 00:42:05,960 --> 00:42:08,759 Speaker 1: this Monday, I'm Joe Matthew coming to you live from 776 00:42:08,760 --> 00:42:10,759 Speaker 1: New York and I'll meet you back here tomorrow on 777 00:42:10,840 --> 00:42:13,000 Speaker 1: Balance of Power. This is Bloomberg