1 00:00:02,520 --> 00:00:10,119 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. You're listening to the 2 00:00:10,119 --> 00:00:13,880 Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at 3 00:00:13,920 --> 00:00:17,119 Speaker 1: noon and five pm Eastern on Apple, Cockley and Android 4 00:00:17,160 --> 00:00:20,520 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 5 00:00:20,600 --> 00:00:23,760 Speaker 1: you get your podcasts, or watch us live on YouTube. 6 00:00:25,440 --> 00:00:28,800 Speaker 2: Tuesday edition with President Trump in the air Creedy. He's 7 00:00:28,800 --> 00:00:31,880 Speaker 2: on his way to the UK for an important visit, 8 00:00:32,000 --> 00:00:33,919 Speaker 2: he and the First Lady for that matter. That will 9 00:00:33,960 --> 00:00:38,440 Speaker 2: be part business and part I guess fetting by the 10 00:00:38,520 --> 00:00:39,120 Speaker 2: royal family. 11 00:00:39,159 --> 00:00:41,440 Speaker 3: He's done this once before, so it should look pretty familiar. 12 00:00:41,560 --> 00:00:43,559 Speaker 4: Really taking up that invitation the envelope. 13 00:00:43,600 --> 00:00:47,120 Speaker 5: He was very clearly handed right here, starmer directly from 14 00:00:47,240 --> 00:00:48,680 Speaker 5: King Charles at the time. 15 00:00:48,800 --> 00:00:50,680 Speaker 4: Real showmanship in that relationship. 16 00:00:50,680 --> 00:00:52,400 Speaker 5: We'll see if you have something to say, though at 17 00:00:52,440 --> 00:00:55,080 Speaker 5: the departure today he had plenty to say on that relationship. 18 00:00:55,080 --> 00:00:55,880 Speaker 5: We'll see if there's more. 19 00:00:55,960 --> 00:00:57,880 Speaker 2: Well, you were there in the driveway when he left. 20 00:00:57,920 --> 00:00:59,920 Speaker 2: Let's listen to Donald Trump on his way to London. 21 00:01:01,440 --> 00:01:03,600 Speaker 6: They want to see if they can refine a great deal. 22 00:01:03,640 --> 00:01:04,880 Speaker 3: And they've remade. 23 00:01:04,600 --> 00:01:08,240 Speaker 7: A deal and it's a great deal, and I'm into 24 00:01:08,240 --> 00:01:10,319 Speaker 7: helping them our country is doing very well. 25 00:01:10,600 --> 00:01:11,720 Speaker 3: We've never done this well. 26 00:01:11,760 --> 00:01:14,880 Speaker 7: We're making having billions of dollars coming to be visit 27 00:01:14,959 --> 00:01:15,920 Speaker 7: the Darns. 28 00:01:15,920 --> 00:01:16,920 Speaker 5: And they'd like to see if. 29 00:01:16,840 --> 00:01:18,600 Speaker 6: They could get a little bit better deal, so we'll 30 00:01:18,640 --> 00:01:20,680 Speaker 6: talk to them. 31 00:01:20,959 --> 00:01:23,280 Speaker 2: President and First Lady are sets who arrive this evening. 32 00:01:23,360 --> 00:01:26,120 Speaker 2: The main focus of their visit is really tomorrow. They'll 33 00:01:26,120 --> 00:01:30,080 Speaker 2: be at Windsor Castle where the ceremonial welcome with the 34 00:01:30,080 --> 00:01:32,920 Speaker 2: Honor Guard will greet them, followed by lunch with the 35 00:01:33,000 --> 00:01:37,319 Speaker 2: royal family and the President will of course enjoy the 36 00:01:37,319 --> 00:01:40,679 Speaker 2: fly by. They're going to have the Red Arrows out 37 00:01:40,680 --> 00:01:43,000 Speaker 2: there along with a couple of F thirty five's provided 38 00:01:43,040 --> 00:01:44,960 Speaker 2: by the United States. But on Thursday he goes to 39 00:01:45,040 --> 00:01:48,200 Speaker 2: Checkers to meet with the Prime Minister and helping us put. 40 00:01:48,080 --> 00:01:50,240 Speaker 3: This ambitious schedule together. 41 00:01:50,360 --> 00:01:52,840 Speaker 2: Is Lizzie Burton really great to have Bloomberg's TV anchor 42 00:01:52,880 --> 00:01:56,880 Speaker 2: and correspondent live from London. Lizzie, what's the security going 43 00:01:56,960 --> 00:01:59,040 Speaker 2: to be like and what's the feeling on the ground. 44 00:02:01,840 --> 00:02:03,080 Speaker 8: It's already tight, Joe. 45 00:02:03,120 --> 00:02:06,520 Speaker 9: We've got police in their droves here in windso we're 46 00:02:06,520 --> 00:02:09,600 Speaker 9: actually not at Buckingham Palace for this state visit. We're 47 00:02:09,639 --> 00:02:13,360 Speaker 9: at Windsor Castle, this eleventh century fortress behind me, because 48 00:02:13,639 --> 00:02:16,480 Speaker 9: as you know, this isn't Donald Trump's first state visit. 49 00:02:16,520 --> 00:02:20,240 Speaker 9: It's an unprecedented second state visit to the UK. And 50 00:02:20,280 --> 00:02:23,239 Speaker 9: there is much on the agenda here as you allude to, 51 00:02:23,320 --> 00:02:27,400 Speaker 9: this economic partnership seeking to be built upon after that 52 00:02:27,520 --> 00:02:30,120 Speaker 9: trade deal for which Britain really was at the. 53 00:02:30,040 --> 00:02:30,880 Speaker 8: Front of the queue. 54 00:02:30,919 --> 00:02:33,520 Speaker 9: Of course, we're enjoying lower tariffs than many of the 55 00:02:33,639 --> 00:02:37,840 Speaker 9: US's other allies. We're expecting ten billion dollars of economic 56 00:02:37,880 --> 00:02:41,800 Speaker 9: partnerships to be signed here, including on defense, technology. 57 00:02:41,520 --> 00:02:43,080 Speaker 8: And nuclear partnership. 58 00:02:43,320 --> 00:02:46,200 Speaker 9: Also efforts to bring together the financial hubs on both 59 00:02:46,240 --> 00:02:47,200 Speaker 9: sides of the Atlantic. 60 00:02:47,480 --> 00:02:48,480 Speaker 8: And already we've. 61 00:02:48,320 --> 00:02:50,800 Speaker 9: Heard from Google saying that they're going to put five 62 00:02:50,840 --> 00:02:54,760 Speaker 9: billion pounds into artificial intelligence here in the UK, although 63 00:02:54,960 --> 00:02:57,799 Speaker 9: of course that's really a drop in the ocean for Alphabet, 64 00:02:57,880 --> 00:03:00,760 Speaker 9: but significant nonetheless for the UK. But I have to 65 00:03:00,840 --> 00:03:03,960 Speaker 9: say this could not becoming at a worse time for 66 00:03:04,080 --> 00:03:06,200 Speaker 9: Keir Starmer. So it's fraught with political risk. 67 00:03:07,680 --> 00:03:10,320 Speaker 5: Well is the ft, as we were talking about earlier 68 00:03:10,360 --> 00:03:13,320 Speaker 5: in the program. Has talked about more cooperation, not just 69 00:03:13,360 --> 00:03:15,160 Speaker 5: on the tech front, around the crypto front as well. 70 00:03:15,160 --> 00:03:17,120 Speaker 5: We know this is an issue that's close to the 71 00:03:17,120 --> 00:03:20,640 Speaker 5: Trump administration's heart. What can the UK offer when it 72 00:03:20,680 --> 00:03:22,600 Speaker 5: comes to the crypto agenda. 73 00:03:25,680 --> 00:03:28,480 Speaker 9: Well, of course crypto crucial to the UK when it's 74 00:03:28,480 --> 00:03:30,960 Speaker 9: financially I would say that there's a difference between the 75 00:03:31,040 --> 00:03:32,079 Speaker 9: UK and the US. 76 00:03:32,000 --> 00:03:32,800 Speaker 8: On the regulation. 77 00:03:33,000 --> 00:03:36,440 Speaker 9: You know, on the Washington side, Donald Trump's personal interest 78 00:03:36,480 --> 00:03:38,880 Speaker 9: in this when it comes to investing in crypto and 79 00:03:38,960 --> 00:03:41,960 Speaker 9: regulatorally as well. In the UK we've been a little 80 00:03:41,960 --> 00:03:44,120 Speaker 9: more hesitant on it, including from the. 81 00:03:44,120 --> 00:03:45,920 Speaker 8: Bank of England Governor Andrew. 82 00:03:45,560 --> 00:03:48,400 Speaker 9: Bailey, and perhaps that's going to be something that holds 83 00:03:48,440 --> 00:03:50,960 Speaker 9: back the UK that caution. So I am sure that 84 00:03:51,000 --> 00:03:53,400 Speaker 9: this is something that will come up in the conversation 85 00:03:53,560 --> 00:03:56,840 Speaker 9: is not just between Starmer and Donald Trump himself, but 86 00:03:56,880 --> 00:03:59,800 Speaker 9: also when the US secret Treasury Secretary Scott Bessent meets 87 00:03:59,800 --> 00:04:02,080 Speaker 9: with Rachel Reeves, and of course they're going to be 88 00:04:02,440 --> 00:04:05,440 Speaker 9: round the table with many of the traditional banking heads, 89 00:04:05,440 --> 00:04:08,960 Speaker 9: the likes of HSBC and Bank of America when they're 90 00:04:09,080 --> 00:04:13,280 Speaker 9: gathering in Checkers on Thursday. So there's much to be discussed. 91 00:04:13,320 --> 00:04:15,960 Speaker 9: But I really have to underscore the risk here. Look 92 00:04:16,040 --> 00:04:20,160 Speaker 9: kir Starmer's government has lost three in just the past 93 00:04:20,400 --> 00:04:24,160 Speaker 9: two weeks, including the UK Ambassador to Washington, Peter Mandelson, 94 00:04:24,520 --> 00:04:27,400 Speaker 9: over his links to Jeffrey Epstein, and this comes down 95 00:04:27,440 --> 00:04:31,240 Speaker 9: to a bloomberg scoop. It is going to be absolutely painful, 96 00:04:31,560 --> 00:04:33,400 Speaker 9: not just in the room between the two of them, 97 00:04:33,560 --> 00:04:36,400 Speaker 9: but possibly in a press conference that we're expecting at 98 00:04:36,400 --> 00:04:38,640 Speaker 9: the end of this visit, if. 99 00:04:38,839 --> 00:04:40,760 Speaker 8: For example, Starmer is asked. 100 00:04:40,680 --> 00:04:44,320 Speaker 9: Do you believe that somebody with links to Epstein should 101 00:04:44,320 --> 00:04:46,919 Speaker 9: not be in high office? There is that, there is 102 00:04:46,960 --> 00:04:49,920 Speaker 9: the crypto question. There is the question of Palestine as well. 103 00:04:50,000 --> 00:04:54,680 Speaker 9: Starmer looking to recognize Palestine at the UN General Assembly 104 00:04:54,760 --> 00:04:58,480 Speaker 9: meeting in New York next week. So above all, Starmer 105 00:04:58,520 --> 00:05:01,760 Speaker 9: can't afford to look to be a pleasing President Trump, 106 00:05:02,040 --> 00:05:04,640 Speaker 9: who is deeply unpopular here in Britain. 107 00:05:07,080 --> 00:05:08,600 Speaker 3: It's really great to have you, Lizzie. 108 00:05:08,600 --> 00:05:10,360 Speaker 2: Thank you so much for the readout, and we'll be 109 00:05:10,520 --> 00:05:13,640 Speaker 2: staying in touch with Lizzie Burden over the next forty 110 00:05:13,640 --> 00:05:15,960 Speaker 2: eight to seventy two hours as the President and First 111 00:05:16,040 --> 00:05:18,040 Speaker 2: Lady make their way. By the time we're on the 112 00:05:18,120 --> 00:05:20,040 Speaker 2: late edition of Balance of Power, and when you join 113 00:05:20,120 --> 00:05:22,800 Speaker 2: us again at five pm Eastern, we should be looking 114 00:05:22,880 --> 00:05:26,560 Speaker 2: at their arrival if all things stay on time. We 115 00:05:26,600 --> 00:05:29,120 Speaker 2: do have some breaking news coming from Capitol Hill, and 116 00:05:29,160 --> 00:05:32,479 Speaker 2: it has to do with a potential government shutdown or 117 00:05:32,520 --> 00:05:38,200 Speaker 2: in this case, averting one. The continuing Resolution that has 118 00:05:38,200 --> 00:05:41,920 Speaker 2: been written up by House Republicans would keep government funding static. 119 00:05:41,960 --> 00:05:45,760 Speaker 2: A continuing resolution continues the budget that's already in place 120 00:05:46,279 --> 00:05:50,320 Speaker 2: until the twenty first of November. That's roughly what we 121 00:05:50,400 --> 00:05:53,800 Speaker 2: expected with reporting yesterday suggesting the twentieth of November would 122 00:05:53,800 --> 00:05:55,840 Speaker 2: be the case. And it's a far cry from going 123 00:05:55,880 --> 00:05:57,640 Speaker 2: to the end of the year and pushing everybody into 124 00:05:58,160 --> 00:06:01,400 Speaker 2: a Christmas deadline. In an even further cry from the 125 00:06:01,440 --> 00:06:04,599 Speaker 2: full year seer that the administration had suggested. It's a 126 00:06:04,600 --> 00:06:08,040 Speaker 2: great opportunity to start our conversation with Congressman Mike Herodopolis, 127 00:06:08,040 --> 00:06:11,120 Speaker 2: the Republican from Florida's eighth district, is joining us now 128 00:06:11,160 --> 00:06:13,960 Speaker 2: live from Capitol Hill, and Congressman, it's great to have 129 00:06:14,040 --> 00:06:14,520 Speaker 2: you with us. 130 00:06:14,720 --> 00:06:16,119 Speaker 3: How do you feel about this idea? 131 00:06:16,160 --> 00:06:18,400 Speaker 2: I know the Speaker presented some options to the conference 132 00:06:18,440 --> 00:06:20,440 Speaker 2: this morning. Are you good keeping things where they are 133 00:06:20,520 --> 00:06:21,760 Speaker 2: until November twenty first? 134 00:06:22,800 --> 00:06:23,120 Speaker 6: I am. 135 00:06:23,160 --> 00:06:26,160 Speaker 7: We want to make sure the government stays open. It 136 00:06:26,200 --> 00:06:29,240 Speaker 7: is common sense as we're getting our economic rebound with 137 00:06:29,279 --> 00:06:32,440 Speaker 7: a new bill that of course takes this taxes stable. 138 00:06:32,600 --> 00:06:34,640 Speaker 7: We do not see a tax increase, and of course 139 00:06:34,720 --> 00:06:37,320 Speaker 7: all the investment coming from overseas. We want to keep 140 00:06:37,360 --> 00:06:40,840 Speaker 7: that momentum going. And I'm optimistic we can strike a deal. 141 00:06:40,880 --> 00:06:43,800 Speaker 7: But Republicans are one hundred percent committed to keeping the 142 00:06:43,839 --> 00:06:46,240 Speaker 7: government open. We know how vital it is as we 143 00:06:46,279 --> 00:06:46,839 Speaker 7: move forward. 144 00:06:49,520 --> 00:06:52,560 Speaker 5: Representative Harrodapolis, some of your colleagues, I'll just name a 145 00:06:52,560 --> 00:06:56,800 Speaker 5: few here, Representatives Massy Birchett, Sparks, Davidson. 146 00:06:56,360 --> 00:06:57,000 Speaker 6: Even Green. 147 00:06:57,360 --> 00:07:00,400 Speaker 5: I've started to raise questions about this particular bill. Do 148 00:07:00,480 --> 00:07:02,799 Speaker 5: you think you're going to get them across the finish line, 149 00:07:03,040 --> 00:07:04,440 Speaker 5: or do you still need to appease some of the 150 00:07:04,440 --> 00:07:05,680 Speaker 5: centrist Democrats that are. 151 00:07:05,560 --> 00:07:09,679 Speaker 7: Holding out or work under the assumption that Democrats simply 152 00:07:09,760 --> 00:07:12,120 Speaker 7: want to shut the government down. You've heard Chuck Schumer's 153 00:07:12,320 --> 00:07:15,120 Speaker 7: comments throughout the last few weeks. They want to play 154 00:07:15,160 --> 00:07:17,880 Speaker 7: politics with it. We choose to keep the government open. 155 00:07:18,320 --> 00:07:20,280 Speaker 7: I know that some of my colleagues in the House 156 00:07:20,320 --> 00:07:24,200 Speaker 7: has some concerns, and that's always part of the internal discussion. 157 00:07:24,200 --> 00:07:27,080 Speaker 7: We're going to have. But that said, I'm committed to 158 00:07:27,120 --> 00:07:30,080 Speaker 7: moving to government forward. I got elected to get things done. 159 00:07:30,240 --> 00:07:32,840 Speaker 7: I'm happy to say that the reporter has been secured. 160 00:07:32,880 --> 00:07:34,960 Speaker 7: And of course we passed the Big Budget Bill back 161 00:07:35,000 --> 00:07:39,400 Speaker 7: on July fourth, which finally offered certainty instability to taxpayers. 162 00:07:39,720 --> 00:07:41,960 Speaker 7: And another part of the process is to make sure 163 00:07:41,960 --> 00:07:44,720 Speaker 7: we keep the government open as we look to lower 164 00:07:44,800 --> 00:07:46,960 Speaker 7: interest rates and do other things to make sure that 165 00:07:47,080 --> 00:07:50,000 Speaker 7: we stimulate this economy and send a message around the 166 00:07:50,000 --> 00:07:52,800 Speaker 7: world that the United States is open for business. 167 00:07:53,840 --> 00:07:58,560 Speaker 2: Yeah, there's been some talk about maybe a longer term conversation, Congressman, 168 00:07:58,640 --> 00:08:00,760 Speaker 2: you get the cr out of the block and to 169 00:08:00,800 --> 00:08:03,880 Speaker 2: be able to actually get to the table with Democrats 170 00:08:04,320 --> 00:08:07,240 Speaker 2: over the expiration of Affordable Care Act credits. Some have 171 00:08:07,280 --> 00:08:12,280 Speaker 2: suggested that extending those might unlock a potential deal with 172 00:08:12,360 --> 00:08:14,120 Speaker 2: your colleagues on the other side of the aisle. We've 173 00:08:14,160 --> 00:08:16,800 Speaker 2: also seen polling, and I believe it was Tony Fabrizio 174 00:08:17,120 --> 00:08:19,440 Speaker 2: that the expiration of those credits could cause a lot 175 00:08:19,440 --> 00:08:22,040 Speaker 2: of trouble for Republicans in the mid terms. Where are 176 00:08:22,040 --> 00:08:24,800 Speaker 2: you on that conversation now? Should that be the point 177 00:08:24,800 --> 00:08:26,080 Speaker 2: of engagement with Democrats? 178 00:08:27,120 --> 00:08:28,720 Speaker 7: Well, I think more than the answers, we want to 179 00:08:28,720 --> 00:08:30,680 Speaker 7: have a discussion with the American public about what this 180 00:08:30,760 --> 00:08:33,680 Speaker 7: bill is and what it isn't. These credits are important 181 00:08:33,720 --> 00:08:35,240 Speaker 7: to a lot of families, but we also want to 182 00:08:35,240 --> 00:08:37,160 Speaker 7: make sure we have a level playing field for people 183 00:08:37,280 --> 00:08:40,400 Speaker 7: are buying insurance without the help of the federal government. 184 00:08:40,440 --> 00:08:42,200 Speaker 7: So I think that one of the key points as 185 00:08:42,200 --> 00:08:45,200 Speaker 7: we move forward. But let's be clear here. The Democrats 186 00:08:45,440 --> 00:08:47,400 Speaker 7: want to shut the government down. They're in a total 187 00:08:47,480 --> 00:08:50,320 Speaker 7: chaotic situation, and they think the only way to appease 188 00:08:50,400 --> 00:08:53,079 Speaker 7: their bases probably to shut it down. What Mike Johnson 189 00:08:53,080 --> 00:08:55,960 Speaker 7: has done is our speaker throughout the year has always 190 00:08:55,960 --> 00:08:58,320 Speaker 7: been able to bring this caucus together to push some 191 00:08:58,440 --> 00:09:01,640 Speaker 7: common sense forward, and of course the President has been 192 00:09:01,960 --> 00:09:02,840 Speaker 7: leading that charge. 193 00:09:02,840 --> 00:09:04,640 Speaker 6: And so I think we'll work this thing out. 194 00:09:04,679 --> 00:09:07,200 Speaker 7: But again, we have to work under the assumption, given 195 00:09:07,240 --> 00:09:10,000 Speaker 7: the rhetoric and the Democrats for weeks now that they're 196 00:09:10,040 --> 00:09:12,679 Speaker 7: okay with shutting down the government. We're not, and we're 197 00:09:12,720 --> 00:09:14,400 Speaker 7: going to do everything in our power in a common 198 00:09:14,440 --> 00:09:17,760 Speaker 7: sense way to protect taxpayers to keep the government open. 199 00:09:19,840 --> 00:09:22,079 Speaker 5: Just to be clear, Congressman, does that mean that even 200 00:09:22,120 --> 00:09:24,280 Speaker 5: though as you mentioned, it's A key sticking point is 201 00:09:24,280 --> 00:09:26,360 Speaker 5: that's not necessarily the starting point when it comes to 202 00:09:26,400 --> 00:09:28,640 Speaker 5: these discussions ahead of Thanksgiving. 203 00:09:29,840 --> 00:09:32,199 Speaker 7: Well, again, all I can say is I can't speak 204 00:09:32,240 --> 00:09:35,160 Speaker 7: for others, and you know the in and out maneuvers 205 00:09:35,160 --> 00:09:37,320 Speaker 7: that the Democrats have been talking about. But bottom line 206 00:09:37,360 --> 00:09:39,760 Speaker 7: is they think that if you raise taxes and grow 207 00:09:39,800 --> 00:09:42,600 Speaker 7: government that somehow that's going to stimulate the economy. We 208 00:09:42,760 --> 00:09:47,040 Speaker 7: happen to think differently. I always welcome conversations with the Democrats, 209 00:09:47,080 --> 00:09:48,840 Speaker 7: but they need to put something up on the table. 210 00:09:49,080 --> 00:09:52,040 Speaker 7: The American public was very clear last November they wanted 211 00:09:52,160 --> 00:09:55,000 Speaker 7: change in Washington. We've given them that change, and we 212 00:09:55,120 --> 00:09:57,440 Speaker 7: solved the problems on the border, and we solve the 213 00:09:57,480 --> 00:10:00,000 Speaker 7: problems with the tax situation, which was very much uneasy. 214 00:10:00,360 --> 00:10:03,120 Speaker 7: I mean, Bloomberg is dedicated to business, and the best 215 00:10:03,120 --> 00:10:06,040 Speaker 7: thing the government can always do is offer certainty and 216 00:10:06,080 --> 00:10:07,559 Speaker 7: stability to the business world. 217 00:10:07,720 --> 00:10:08,800 Speaker 6: That's what we're trying to do. 218 00:10:09,000 --> 00:10:11,120 Speaker 7: We hope that the Democrats they'll throw in some kind 219 00:10:11,160 --> 00:10:12,920 Speaker 7: of monkey wrench do mess this up. 220 00:10:14,040 --> 00:10:15,400 Speaker 2: Well, you know what we've heard from a lot of them, 221 00:10:15,440 --> 00:10:18,360 Speaker 2: and I'd love to ask you about business and the 222 00:10:18,400 --> 00:10:20,719 Speaker 2: Federal Reserve meeting that's starting today, Congressman. 223 00:10:20,920 --> 00:10:23,320 Speaker 3: But just lastly, we've had Democrats. 224 00:10:22,760 --> 00:10:25,319 Speaker 2: Including Brendan Boyle that the top Democrat on the Budget 225 00:10:25,360 --> 00:10:28,920 Speaker 2: Committee explained that their concern boiled down to not just 226 00:10:29,000 --> 00:10:32,280 Speaker 2: the debate over the big, beautiful Bill, but the recisions 227 00:10:32,320 --> 00:10:35,360 Speaker 2: that followed. That there's a lack of trust between the 228 00:10:35,360 --> 00:10:38,640 Speaker 2: two parties because money has agreed upon and appropriated were 229 00:10:38,679 --> 00:10:40,160 Speaker 2: clawed back by Republicans. 230 00:10:40,720 --> 00:10:43,480 Speaker 3: Do you see them on that front? 231 00:10:43,520 --> 00:10:46,880 Speaker 7: What would be your response, Well, it's a good question 232 00:10:46,920 --> 00:10:49,600 Speaker 7: to ask, but let's be clear. The Democrats were absolutely 233 00:10:49,640 --> 00:10:52,920 Speaker 7: okay given how they voted to raising taxes. I mean, 234 00:10:52,920 --> 00:10:54,720 Speaker 7: if you looked at the big Bill, they were okay 235 00:10:54,760 --> 00:10:57,160 Speaker 7: with going back to the old tax rates, which on 236 00:10:57,240 --> 00:10:59,840 Speaker 7: average would have been a twenty three percent tax increase. 237 00:11:00,160 --> 00:11:02,040 Speaker 7: I don't think that's a good thing for the economy 238 00:11:02,240 --> 00:11:04,760 Speaker 7: as far as recisions bills are concerned. When you look 239 00:11:04,760 --> 00:11:06,800 Speaker 7: at what we cut out of there, we're talking about 240 00:11:06,920 --> 00:11:10,760 Speaker 7: NPR and PBS. That is not a vital government function. 241 00:11:11,000 --> 00:11:12,600 Speaker 7: Remember when I was growing up, there might have been 242 00:11:12,640 --> 00:11:15,280 Speaker 7: three or four channels, but today there are hundreds of 243 00:11:15,360 --> 00:11:18,400 Speaker 7: channels with whatever people want to see, and so we 244 00:11:18,400 --> 00:11:20,920 Speaker 7: don't need to be subsidizing those programs, and it was 245 00:11:20,960 --> 00:11:25,320 Speaker 7: a message how we worked out well the USAID. It 246 00:11:25,360 --> 00:11:27,480 Speaker 7: was even clearer to me. I am glad you asked Joe. 247 00:11:27,559 --> 00:11:30,160 Speaker 7: I mean, if anybody looks at this in a common 248 00:11:30,200 --> 00:11:32,440 Speaker 7: sense lens, they're going to say, we spent money on 249 00:11:32,559 --> 00:11:35,080 Speaker 7: that when we have a budget shortfall. I thought the 250 00:11:35,160 --> 00:11:37,600 Speaker 7: USAID cuts were the most obvious ones to make, and 251 00:11:37,640 --> 00:11:39,400 Speaker 7: I think we need to look further. And it's the 252 00:11:39,480 --> 00:11:41,640 Speaker 7: risen of the reasons why I created a bill that 253 00:11:41,720 --> 00:11:44,840 Speaker 7: we're looking at called the Ledger Act. It says everything 254 00:11:44,880 --> 00:11:47,480 Speaker 7: should be out there. You should see exactly where all 255 00:11:47,480 --> 00:11:49,840 Speaker 7: of your money is being spent, not just the top line, 256 00:11:49,880 --> 00:11:52,840 Speaker 7: but the specifics within. That's what we did in Florida, 257 00:11:53,000 --> 00:11:55,240 Speaker 7: and we're the most transparent state in the nation and 258 00:11:55,280 --> 00:11:57,920 Speaker 7: it turned around our economy. It's the reason why Rick Scott, 259 00:11:57,920 --> 00:12:01,319 Speaker 7: our US Senator, enforced myself as push bill with literally 260 00:12:01,559 --> 00:12:03,840 Speaker 7: seventy co sponsors in the House. We want to make 261 00:12:03,880 --> 00:12:06,400 Speaker 7: the government more transparent so we don't have these bogus 262 00:12:06,440 --> 00:12:08,720 Speaker 7: expenditures like we saw with USAID. 263 00:12:10,760 --> 00:12:13,319 Speaker 5: Congressman, We've also got one I firmly on the federal reserve, 264 00:12:13,360 --> 00:12:15,840 Speaker 5: as Joe had mentioned earlier. I just want to play 265 00:12:15,880 --> 00:12:17,800 Speaker 5: with for you some sounds and comments that the President 266 00:12:17,800 --> 00:12:20,120 Speaker 5: had made earlier. When it comes to the new point 267 00:12:20,360 --> 00:12:22,560 Speaker 5: to the FMC board, Stephen Merange, take a listen. 268 00:12:23,280 --> 00:12:23,600 Speaker 6: Thank you. 269 00:12:23,640 --> 00:12:25,040 Speaker 3: I'll have a big implorence on this. 270 00:12:25,520 --> 00:12:28,000 Speaker 6: But ju Leg getting his race down, I guess who knows? 271 00:12:28,320 --> 00:12:30,880 Speaker 10: You never know what du Leg, but who's gone allows 272 00:12:30,920 --> 00:12:33,280 Speaker 10: these jobs Rach the race should be much lawer. 273 00:12:33,280 --> 00:12:35,440 Speaker 3: I think about intelligent that it should be. 274 00:12:35,559 --> 00:12:37,839 Speaker 6: But I think they should listen to smart people like me. 275 00:12:38,600 --> 00:12:40,319 Speaker 8: I think I have a better instinct than him. 276 00:12:40,360 --> 00:12:43,040 Speaker 7: If you look, all the economists got it wrong, I 277 00:12:43,080 --> 00:12:43,640 Speaker 7: got it right. 278 00:12:46,200 --> 00:12:48,880 Speaker 5: The President there, speaking of course, ahead of his departure 279 00:12:48,920 --> 00:12:51,600 Speaker 5: to London Congressman, he's making the case that RACH should 280 00:12:51,600 --> 00:12:55,360 Speaker 5: be significantly lower. Traditionally, when we hear rhetoric like that, 281 00:12:55,400 --> 00:12:57,120 Speaker 5: it means that the economy is in trouble, that we're 282 00:12:57,120 --> 00:12:59,600 Speaker 5: heading for recession. Do you see any signs of that? 283 00:13:00,760 --> 00:13:02,960 Speaker 7: Well, I think we all had concerns with the latest 284 00:13:03,000 --> 00:13:05,880 Speaker 7: job reports, and the President has said we've been pushing 285 00:13:05,960 --> 00:13:08,800 Speaker 7: for this for months. Unfortunately, the FED Board has been 286 00:13:08,840 --> 00:13:10,960 Speaker 7: giving us kind of the run around on that. But 287 00:13:11,040 --> 00:13:13,599 Speaker 7: bottom line is this I had mister Powell in the 288 00:13:13,640 --> 00:13:16,079 Speaker 7: committee where I serve on the Financial Services Committee where 289 00:13:16,080 --> 00:13:18,760 Speaker 7: I serve as whip, and I asked them two fundamental questions. 290 00:13:18,800 --> 00:13:21,240 Speaker 7: Did they make a mistake in the Biden years on 291 00:13:21,360 --> 00:13:22,160 Speaker 7: the interest rates? 292 00:13:22,240 --> 00:13:24,040 Speaker 6: He admitted, yes, we made a mistake. 293 00:13:24,400 --> 00:13:28,160 Speaker 7: Second, I said, did the overspending in Washington also stimulate 294 00:13:28,240 --> 00:13:28,880 Speaker 7: this inflation? 295 00:13:29,120 --> 00:13:29,960 Speaker 6: He said yes. 296 00:13:30,160 --> 00:13:32,439 Speaker 7: So with that in mind, when other nations are cutting 297 00:13:32,480 --> 00:13:34,880 Speaker 7: their interest rates, we need to do the same here. 298 00:13:35,200 --> 00:13:37,800 Speaker 7: Where I live in Florida, the difference between a seven 299 00:13:37,840 --> 00:13:40,360 Speaker 7: percent interest rate and a three percent interest rate on 300 00:13:40,400 --> 00:13:43,800 Speaker 7: an average home where I live is twelve hundred dollars 301 00:13:43,840 --> 00:13:47,400 Speaker 7: a month. That's fifteen thousand dollars a year, and people 302 00:13:47,440 --> 00:13:50,760 Speaker 7: can't afford it. That's the inflationary effect we want to 303 00:13:50,800 --> 00:13:53,120 Speaker 7: get rid of. We want to tackle inflation by doing 304 00:13:53,120 --> 00:13:56,959 Speaker 7: common sense things, by reducing spending and giving certainty of economy, 305 00:13:57,080 --> 00:13:59,880 Speaker 7: by keeping the government open and making sure that people 306 00:13:59,920 --> 00:14:02,440 Speaker 7: know that the tax rate is stable now and they 307 00:14:02,440 --> 00:14:05,720 Speaker 7: can make those investments long term. 308 00:14:06,000 --> 00:14:08,600 Speaker 3: It's got to be an interesting day in the room, Congress. 309 00:14:08,640 --> 00:14:11,000 Speaker 2: I mean, you've got Steven Meyern first day on the job, 310 00:14:11,559 --> 00:14:14,360 Speaker 2: presumably sitting next to Lisa Cook as they hash out 311 00:14:14,440 --> 00:14:16,359 Speaker 2: this decision and review the data. 312 00:14:16,480 --> 00:14:18,560 Speaker 3: Do you believe Lisa Cook should be fired? 313 00:14:19,760 --> 00:14:22,320 Speaker 7: Well, I think that that FATS speaks for themselves, and 314 00:14:22,560 --> 00:14:26,040 Speaker 7: we want people who truly understand the economy, the reason 315 00:14:26,080 --> 00:14:28,080 Speaker 7: why I'm out in the real world every day talking 316 00:14:28,120 --> 00:14:30,560 Speaker 7: to people who create jobs and opportunity, not just the 317 00:14:30,560 --> 00:14:33,200 Speaker 7: folks here in Washington, DC. And as you saw in 318 00:14:33,240 --> 00:14:36,120 Speaker 7: the last meeting of the FED, there was a split vote, 319 00:14:36,120 --> 00:14:38,080 Speaker 7: which is very rare. As you know, I think that 320 00:14:38,240 --> 00:14:40,160 Speaker 7: given the numbers that we're seeing right now, I think 321 00:14:40,160 --> 00:14:42,680 Speaker 7: there's a good chance we'll get at Lisa a quarter point, 322 00:14:42,760 --> 00:14:45,280 Speaker 7: hopefully a little bit more. To help people who've been 323 00:14:45,320 --> 00:14:47,840 Speaker 7: so hard hit the last four years with higher rent 324 00:14:47,880 --> 00:14:50,120 Speaker 7: prices and gas prices. We want to help them out, 325 00:14:50,160 --> 00:14:51,640 Speaker 7: and one way to do that is to help them 326 00:14:51,720 --> 00:14:52,680 Speaker 7: on their mortgage payment. 327 00:14:53,720 --> 00:14:55,640 Speaker 3: I know you mentioned the facts speaking for themselves. 328 00:14:55,640 --> 00:14:57,880 Speaker 2: Do you think she deserves due process in this case 329 00:14:57,920 --> 00:14:59,960 Speaker 2: before she's fired or not fired? 330 00:15:00,760 --> 00:15:03,400 Speaker 7: Well, look, we always want to provide that, but also 331 00:15:03,400 --> 00:15:05,240 Speaker 7: when you apply for jobs like this, you need to 332 00:15:05,280 --> 00:15:08,080 Speaker 7: be honest, and clearly that was not the case, and 333 00:15:08,560 --> 00:15:11,640 Speaker 7: I think that that full transparence that I talked about earlier, Joe, 334 00:15:11,720 --> 00:15:14,360 Speaker 7: that I did where government spending should be in the sunshine. 335 00:15:14,400 --> 00:15:16,440 Speaker 6: We need to do that. But bottom line is. 336 00:15:16,360 --> 00:15:18,520 Speaker 7: The Fed needs to react to the markets, and the 337 00:15:18,560 --> 00:15:20,880 Speaker 7: markets start telling him reduce interest rates. 338 00:15:22,360 --> 00:15:24,760 Speaker 2: Is a man who took his doors off his own 339 00:15:24,800 --> 00:15:29,080 Speaker 2: office back when he was president of the Florida Senate. Congressman, 340 00:15:29,160 --> 00:15:31,080 Speaker 2: it's good to have you with us on Bloomberg. Come 341 00:15:31,120 --> 00:15:34,280 Speaker 2: back and see us again, Mike Herodoppolis, Florida's eighth district. 342 00:15:34,440 --> 00:15:36,600 Speaker 3: Stay with us on Balance of Power. We'll have much 343 00:15:36,600 --> 00:15:37,800 Speaker 3: more coming up after this. 344 00:15:42,240 --> 00:15:45,720 Speaker 1: You're listening to the Bloomberg Balance of Power Podcast. Catch 345 00:15:45,760 --> 00:15:48,840 Speaker 1: us live weekdays at noon and five pm Eastern on 346 00:15:48,960 --> 00:15:52,200 Speaker 1: Apple Coarclay, and Android Auto with the Bloomberg Business App. 347 00:15:52,240 --> 00:15:55,240 Speaker 1: You can also listen live on Amazon Alexa from our 348 00:15:55,280 --> 00:15:59,800 Speaker 1: flagship New York station Just Say Alexa played Bloomberg eleven thirty. 349 00:16:01,320 --> 00:16:03,240 Speaker 2: We keep an eye on an ear and an ear, 350 00:16:03,280 --> 00:16:06,040 Speaker 2: I should say. On Cash Bettel's testimony today, the FBI 351 00:16:06,120 --> 00:16:09,160 Speaker 2: director is on Capitol Hill and this has crossed over 352 00:16:09,240 --> 00:16:10,160 Speaker 2: into the noon hour. 353 00:16:10,200 --> 00:16:12,320 Speaker 3: It's been several hours. 354 00:16:12,720 --> 00:16:15,680 Speaker 2: In many cases contentious back and forth, as you might 355 00:16:15,720 --> 00:16:19,240 Speaker 2: expect with the senators who are there appearing before the 356 00:16:19,320 --> 00:16:25,360 Speaker 2: Judiciary Committee and facing questions about his leadership of this bureau, 357 00:16:25,440 --> 00:16:30,000 Speaker 2: of course, including the firing of top officials and agents, 358 00:16:30,880 --> 00:16:33,280 Speaker 2: as well as, of course his handling of the Epstein 359 00:16:33,360 --> 00:16:37,320 Speaker 2: case and the Charlie Kirk case. There's been a lot 360 00:16:37,360 --> 00:16:41,000 Speaker 2: to talk about here, and the ranking member on the panel, 361 00:16:41,280 --> 00:16:44,560 Speaker 2: Senator Dick Durbin of Illinois, the Democrat you've heard from 362 00:16:44,600 --> 00:16:47,520 Speaker 2: many times on this program, decided to dig right in. 363 00:16:47,600 --> 00:16:49,800 Speaker 2: He was the second questioner, of course, following the chair. 364 00:16:49,880 --> 00:16:52,040 Speaker 2: Let's give you a taste of this back and forth. 365 00:16:52,760 --> 00:16:57,040 Speaker 11: Director Patel, much like you, Deputy Director Dan Bongino was 366 00:16:57,040 --> 00:17:00,440 Speaker 11: a conspiracy theorist who built a lucrative career. Are making 367 00:17:00,480 --> 00:17:05,119 Speaker 11: inflammatory and unsubstantiated statements about the FBI. They would be 368 00:17:05,200 --> 00:17:09,720 Speaker 11: disqualifying in any administration that cared about nonpartisan law enforcement. 369 00:17:09,840 --> 00:17:12,439 Speaker 11: What is the evidence to suggest the pipe bombs placed 370 00:17:12,480 --> 00:17:15,720 Speaker 11: outside of the DNC and RNC on January sixth were 371 00:17:15,760 --> 00:17:16,840 Speaker 11: an inside job? 372 00:17:18,000 --> 00:17:21,679 Speaker 12: I appreciate the opportunity to discuss Director Bongino's mind record 373 00:17:23,119 --> 00:17:25,119 Speaker 12: so many on this committee in the media. Jennison, our 374 00:17:25,160 --> 00:17:27,320 Speaker 12: thirty one years of public service. Can I ask you 375 00:17:27,359 --> 00:17:30,600 Speaker 12: the question, sir, I'm answering the question. You're questioning the 376 00:17:30,640 --> 00:17:33,119 Speaker 12: integrity of the wuty director of the CBI, and you 377 00:17:33,160 --> 00:17:35,760 Speaker 12: found it, and I'm going to answer the question. Pipe 378 00:17:35,800 --> 00:17:38,560 Speaker 12: bomb investigation is ongoing, and I'm not going to the 379 00:17:38,640 --> 00:17:40,880 Speaker 12: details of the pipe bomb investigation. 380 00:17:43,160 --> 00:17:48,160 Speaker 2: That was how things started. Also asked about the FBI 381 00:17:48,280 --> 00:17:54,800 Speaker 2: investigation into the Discord group chat where Charlie Kirk's shooting 382 00:17:54,840 --> 00:17:59,960 Speaker 2: suspects allegedly confessed, he said that they're looking at a lot, 383 00:18:00,040 --> 00:18:05,320 Speaker 2: lot more than the twenty users who have been already described. Now, 384 00:18:05,359 --> 00:18:07,320 Speaker 2: this is an important day for this story. We're going 385 00:18:07,400 --> 00:18:09,639 Speaker 2: to talk about a couple of sides of this. Ashley 386 00:18:09,720 --> 00:18:11,280 Speaker 2: Davis will join us in just a moment for the 387 00:18:11,280 --> 00:18:14,199 Speaker 2: political side of this story. But Miles Miller has been 388 00:18:14,200 --> 00:18:17,800 Speaker 2: all over the law enforcement side of things in the 389 00:18:18,040 --> 00:18:21,120 Speaker 2: court hearing that we're going to see today. Bloomberg, Senior 390 00:18:21,200 --> 00:18:24,199 Speaker 2: National Security reporter with US live from World Headquarters in 391 00:18:24,240 --> 00:18:27,320 Speaker 2: New York. Miles, we expect charges to be made public 392 00:18:28,080 --> 00:18:30,480 Speaker 2: about ninety minutes from now, and then we're actually going 393 00:18:30,480 --> 00:18:32,440 Speaker 2: to see the suspects in court today. 394 00:18:32,720 --> 00:18:35,800 Speaker 10: To ask what to expect, we'll see the suspect from 395 00:18:35,800 --> 00:18:38,480 Speaker 10: a video link, likely from his cell. I don't know 396 00:18:38,520 --> 00:18:41,000 Speaker 10: if he'll actually be brought to court. He's in a 397 00:18:41,119 --> 00:18:45,080 Speaker 10: special protected unit at the Utah County Jail just for 398 00:18:45,160 --> 00:18:49,040 Speaker 10: his own protection. But what we know is that three 399 00:18:49,080 --> 00:18:52,240 Speaker 10: pm Mountain time he's expected to go before that judge. 400 00:18:52,240 --> 00:18:56,439 Speaker 10: He'll face those charges, which include murder, obstruction, and of 401 00:18:56,480 --> 00:18:59,639 Speaker 10: course discharge of a firearm. We learned yesterday from the 402 00:18:59,680 --> 00:19:03,199 Speaker 10: FBI director that there is a definitive link between the 403 00:19:03,280 --> 00:19:06,760 Speaker 10: suspect and the weapon that was found. His DNA was 404 00:19:06,760 --> 00:19:09,240 Speaker 10: found on that weapon, as well as found on that 405 00:19:09,359 --> 00:19:13,240 Speaker 10: towel that he allegedly stashed in the woods there. And 406 00:19:13,320 --> 00:19:15,600 Speaker 10: they know this, of course because of that discord server 407 00:19:15,720 --> 00:19:18,840 Speaker 10: you were talking about engaging in this conversation in detail 408 00:19:18,880 --> 00:19:21,760 Speaker 10: about what he did allegedly to Charlie Kirk. 409 00:19:23,600 --> 00:19:25,240 Speaker 3: Really interesting here. 410 00:19:25,480 --> 00:19:28,439 Speaker 2: Well, will we have cameras so to speak, in the 411 00:19:28,480 --> 00:19:31,560 Speaker 2: courtroom for this trial, Miles, or do we still have 412 00:19:31,720 --> 00:19:32,240 Speaker 2: yet to learn? 413 00:19:32,359 --> 00:19:32,520 Speaker 3: Yeah? 414 00:19:32,560 --> 00:19:35,000 Speaker 10: So for every stage of this state case. And I 415 00:19:35,240 --> 00:19:38,240 Speaker 10: say that, and I'll reference why in a moment, every 416 00:19:38,240 --> 00:19:40,280 Speaker 10: stage in the state case still be cameras in the court. 417 00:19:40,400 --> 00:19:44,600 Speaker 10: Utah has that there, but we have heard hints from 418 00:19:44,640 --> 00:19:48,159 Speaker 10: sources and also from Pambondi yesterday on Fox News that 419 00:19:48,240 --> 00:19:51,800 Speaker 10: this case is likely to also go federal. She also 420 00:19:51,960 --> 00:19:55,359 Speaker 10: mentioned the death penalty. Now, of course, the death penalty 421 00:19:55,400 --> 00:19:57,560 Speaker 10: was something mentioned by Donald Trump. It's not clear if 422 00:19:57,560 --> 00:19:59,879 Speaker 10: it would go to that stage and state court, but 423 00:20:00,359 --> 00:20:04,520 Speaker 10: certainly he could face life in prison federally or the 424 00:20:04,560 --> 00:20:07,600 Speaker 10: death penalty in the federal side as well. 425 00:20:07,800 --> 00:20:10,920 Speaker 2: That's going to be five pm when we see him virtually, 426 00:20:10,960 --> 00:20:14,200 Speaker 2: as you point out, right, Miles, that's right, five pm 427 00:20:14,240 --> 00:20:14,919 Speaker 2: Eastern time. 428 00:20:15,240 --> 00:20:16,880 Speaker 3: Great to have you with us, Miles. We'll talk later. 429 00:20:16,920 --> 00:20:19,399 Speaker 2: Miles Miller live from World Headquarters in New York. As 430 00:20:19,440 --> 00:20:23,199 Speaker 2: we add the voice of Ashley Davis, realizing there is 431 00:20:23,480 --> 00:20:27,479 Speaker 2: an important political side to this whole story. And Ashley 432 00:20:27,560 --> 00:20:30,040 Speaker 2: is a partner at S three Group, republican strategist and 433 00:20:30,080 --> 00:20:33,320 Speaker 2: former special assistant to the Director of Homeland Security, having 434 00:20:33,359 --> 00:20:36,560 Speaker 2: specialized in national security over the course of her career 435 00:20:36,560 --> 00:20:37,240 Speaker 2: here in Washington. 436 00:20:37,280 --> 00:20:39,040 Speaker 3: It's nice to see you, welcome back. Thank you so 437 00:20:39,800 --> 00:20:40,560 Speaker 3: much to talk about. 438 00:20:40,600 --> 00:20:42,399 Speaker 2: I'm doing fine, but this is a pretty tough story 439 00:20:42,440 --> 00:20:44,040 Speaker 2: to talk about, as I'm sure you've been finding as 440 00:20:44,040 --> 00:20:47,960 Speaker 2: well as somebody who's doing public commentary and analysis. 441 00:20:48,960 --> 00:20:52,119 Speaker 3: I feel like things are going to feel differently. 442 00:20:51,760 --> 00:20:54,160 Speaker 2: Later today you hear the charges at two o'clock, we're 443 00:20:54,160 --> 00:20:58,040 Speaker 2: going to actually see virtually the suspect at five o'clock. 444 00:20:58,080 --> 00:21:01,080 Speaker 2: What will that do to the psychology around this case? 445 00:21:02,640 --> 00:21:06,640 Speaker 13: Listen, Joe, I think the whole situation is heart wrenching, 446 00:21:06,880 --> 00:21:10,600 Speaker 13: and especially obviously for his family, his wife and children. 447 00:21:11,320 --> 00:21:15,360 Speaker 13: But what I'm nervous about is that the country's kind 448 00:21:15,359 --> 00:21:18,159 Speaker 13: of coming together right now. Obviously you see some fractions 449 00:21:18,160 --> 00:21:22,199 Speaker 13: of people that we're celebrating Charlie getting murdered, but for 450 00:21:22,240 --> 00:21:25,400 Speaker 13: the most part, people are trying to come around and 451 00:21:25,440 --> 00:21:28,280 Speaker 13: be nice to one another. But when this happened with 452 00:21:28,320 --> 00:21:32,160 Speaker 13: the President, it lasted a week and then everyone went 453 00:21:32,200 --> 00:21:35,119 Speaker 13: back to their corners and started fighting again. And so 454 00:21:35,240 --> 00:21:38,560 Speaker 13: I really hope that after Sunday, I feel all week 455 00:21:38,640 --> 00:21:41,200 Speaker 13: obviously we're going to see what happens today with seeing 456 00:21:41,960 --> 00:21:44,480 Speaker 13: the suspect for the first time. Exactly as you said, 457 00:21:44,800 --> 00:21:47,840 Speaker 13: I think that we will find more information out about 458 00:21:47,920 --> 00:21:51,439 Speaker 13: what was the motive behind this in. 459 00:21:51,400 --> 00:21:52,600 Speaker 14: Some of the court proceedings. 460 00:21:52,640 --> 00:21:56,880 Speaker 13: But after Sunday, when the President does his memorial service 461 00:21:57,560 --> 00:21:59,800 Speaker 13: in Arizona, I just hope that next week, we just 462 00:22:00,200 --> 00:22:00,560 Speaker 13: go back. 463 00:22:00,440 --> 00:22:01,120 Speaker 14: To our old ways. 464 00:22:01,160 --> 00:22:02,239 Speaker 3: We're pretty good at doing that. 465 00:22:02,280 --> 00:22:03,720 Speaker 14: We're very good at getting you know. 466 00:22:03,800 --> 00:22:06,280 Speaker 2: This of course, coincided with the twenty fourth anniversary of 467 00:22:06,320 --> 00:22:09,840 Speaker 2: nine to eleven, which I know is something that's. 468 00:22:09,680 --> 00:22:10,480 Speaker 3: Really important to you. 469 00:22:10,520 --> 00:22:13,000 Speaker 2: And so many people were talking in that day about 470 00:22:13,000 --> 00:22:18,080 Speaker 2: the unity that people felt following the September eleventh attacks 471 00:22:18,920 --> 00:22:21,119 Speaker 2: and how quickly that went away, and we've been trying 472 00:22:21,119 --> 00:22:24,439 Speaker 2: to reach our way back to that somehow ever since 473 00:22:25,160 --> 00:22:27,760 Speaker 2: this could be an opportunity. But we're hearing a lot 474 00:22:27,800 --> 00:22:31,640 Speaker 2: of blaming, a lot of left versus right here. Even 475 00:22:31,680 --> 00:22:34,120 Speaker 2: the President himself has been kind of leading this dialogue. 476 00:22:34,119 --> 00:22:36,080 Speaker 2: And we heard it at the vigils for Charlie Cook. 477 00:22:36,119 --> 00:22:38,119 Speaker 2: We heard it from Jade Vance when he filled in 478 00:22:38,160 --> 00:22:41,119 Speaker 2: them at a show, that this is a radical left problem. 479 00:22:41,520 --> 00:22:46,280 Speaker 2: Governor Shapiro, whose home was firebombed a couple of months ago, 480 00:22:46,440 --> 00:22:50,200 Speaker 2: of Pennsylvania, a Democrat, spoke eloquently yesterday much as Spencer 481 00:22:50,240 --> 00:22:53,560 Speaker 2: Cox has, about it's not good on either side here. 482 00:22:53,600 --> 00:22:57,159 Speaker 2: Do you feel like we're having the right conversation in 483 00:22:57,160 --> 00:22:57,639 Speaker 2: that regard. 484 00:22:58,040 --> 00:23:01,200 Speaker 13: I think it's very hard things that's happening right now 485 00:23:01,240 --> 00:23:04,640 Speaker 13: with the death with Charlie is this is really personal 486 00:23:04,680 --> 00:23:09,199 Speaker 13: to this White House. This is a personal friend to jd. Vance, 487 00:23:09,400 --> 00:23:11,880 Speaker 13: This is a personal friend to the president, the president's son. 488 00:23:12,680 --> 00:23:15,600 Speaker 13: A lot of the staff are very close with Charlie. 489 00:23:15,720 --> 00:23:18,800 Speaker 13: Also members of Congress on the Hill. So I think 490 00:23:18,840 --> 00:23:22,359 Speaker 13: that some of the raw emotions that you see with 491 00:23:22,440 --> 00:23:26,720 Speaker 13: some of how people are talking about this hopefully subsides, 492 00:23:26,760 --> 00:23:29,560 Speaker 13: because I think both the right and the left should 493 00:23:29,600 --> 00:23:32,919 Speaker 13: make sure that they're not getting too much into the 494 00:23:32,920 --> 00:23:35,919 Speaker 13: blame game because it's everyone's fault. And I actually agree 495 00:23:36,240 --> 00:23:38,720 Speaker 13: with the governor who's saying. First of I'm a huge 496 00:23:38,760 --> 00:23:41,600 Speaker 13: Josh Shapiro fan, think he's a great governor in Pennsylvania. 497 00:23:41,640 --> 00:23:45,080 Speaker 13: But when the Governor Utah was saying about the social 498 00:23:45,160 --> 00:23:48,920 Speaker 13: media issues, I really do believe in that because of 499 00:23:49,119 --> 00:23:52,239 Speaker 13: the way you're targeted and as well as what the 500 00:23:52,280 --> 00:23:55,439 Speaker 13: information that you can read online and. 501 00:23:55,320 --> 00:23:56,199 Speaker 14: You see a lot of this. 502 00:23:56,320 --> 00:23:59,280 Speaker 13: I was just talking a little bit earlier with this 503 00:23:59,320 --> 00:24:04,120 Speaker 13: whole disco discord app or chat room whatever it is. 504 00:24:04,280 --> 00:24:06,760 Speaker 13: I mean, this is where my sixteen year olds on 505 00:24:06,880 --> 00:24:10,240 Speaker 13: that that's how they communicate, and so if a lot 506 00:24:10,280 --> 00:24:12,680 Speaker 13: of things are coming out through this chat system, which 507 00:24:12,720 --> 00:24:15,800 Speaker 13: is not probably as highly monitored as it should be. 508 00:24:15,840 --> 00:24:17,880 Speaker 2: You and I could have a whole different conversation as 509 00:24:17,960 --> 00:24:20,040 Speaker 2: parents here because this is very real and we know 510 00:24:20,119 --> 00:24:23,160 Speaker 2: these names because we hear about them in our house exactly. 511 00:24:24,840 --> 00:24:27,080 Speaker 2: Let's bring your experience to bear here with the conversation 512 00:24:27,160 --> 00:24:30,159 Speaker 2: over lawmaker security. It was up to Brian's style this morning, 513 00:24:30,160 --> 00:24:32,720 Speaker 2: the chair of the Admin Committee, to present options to 514 00:24:32,960 --> 00:24:36,639 Speaker 2: the conference, because not everyone is bought in on these ideas, 515 00:24:37,440 --> 00:24:39,480 Speaker 2: and I'm wondering what you think is realistic. We're not 516 00:24:39,520 --> 00:24:41,240 Speaker 2: going to have every member of the House walking around 517 00:24:41,280 --> 00:24:42,040 Speaker 2: with the detail, are we. 518 00:24:43,040 --> 00:24:43,879 Speaker 14: No, it's impossible. 519 00:24:43,880 --> 00:24:46,359 Speaker 13: In way too expensive even if you go the numbers 520 00:24:46,359 --> 00:24:48,919 Speaker 13: today were somewhere between thirty five million and fifty million, 521 00:24:49,000 --> 00:24:52,840 Speaker 13: and that includes not just Congress, but the Justices, some 522 00:24:53,320 --> 00:24:56,040 Speaker 13: senior judges as well, outside the Justices. 523 00:24:55,760 --> 00:24:56,560 Speaker 14: And the Senate. 524 00:24:56,600 --> 00:24:58,000 Speaker 13: I mean, that's just the money's not going to go 525 00:24:58,160 --> 00:24:58,520 Speaker 13: very far. 526 00:24:58,600 --> 00:24:59,080 Speaker 14: As you know. 527 00:25:00,440 --> 00:25:03,320 Speaker 13: Here's what I keep saying about what happened in Butler, 528 00:25:03,359 --> 00:25:08,120 Speaker 13: Pennsylvania with the President and what happened last week with Charlie. 529 00:25:08,320 --> 00:25:11,920 Speaker 13: How do you manage that outdoor space anyway? You really can't. 530 00:25:11,920 --> 00:25:15,400 Speaker 13: I mean, obviously Charlie had his own security and then 531 00:25:15,400 --> 00:25:17,960 Speaker 13: you had the local police force. But if you saw 532 00:25:18,280 --> 00:25:21,480 Speaker 13: time and time again how he was set up that day, 533 00:25:21,800 --> 00:25:23,760 Speaker 13: do you have to move all your events inside? 534 00:25:23,840 --> 00:25:25,440 Speaker 14: And it's but if. 535 00:25:25,320 --> 00:25:27,200 Speaker 13: You're a member of Congress and go to a town hall, 536 00:25:27,280 --> 00:25:30,439 Speaker 13: you're not going the guests aren't going through mags, Like, 537 00:25:30,560 --> 00:25:31,639 Speaker 13: is that where we're going? 538 00:25:31,760 --> 00:25:34,359 Speaker 14: I just think that it's almost impossible to do. 539 00:25:34,640 --> 00:25:36,640 Speaker 2: Yeah, this is well, that's scary, and this is why 540 00:25:36,640 --> 00:25:40,080 Speaker 2: a lot of lawmakers are terrified right now. It's Unger 541 00:25:40,119 --> 00:25:42,880 Speaker 2: Week next week, and part of the review that came 542 00:25:42,920 --> 00:25:47,160 Speaker 2: from the congressional panel investigating the attempt assassination of Donald 543 00:25:47,200 --> 00:25:51,040 Speaker 2: Trump was we have a secret Service that is being 544 00:25:51,160 --> 00:25:56,080 Speaker 2: stressed by any number of other dignitaries they need to protect. 545 00:25:56,080 --> 00:25:59,320 Speaker 2: And part of that includes what takes place during United 546 00:25:59,359 --> 00:26:01,240 Speaker 2: Nations Week in New York. 547 00:26:01,600 --> 00:26:04,200 Speaker 3: For President's going to be there speaking. How difficult will 548 00:26:04,240 --> 00:26:04,480 Speaker 3: this be? 549 00:26:04,880 --> 00:26:07,240 Speaker 13: Well, a lot of the security that will happen around 550 00:26:07,320 --> 00:26:09,840 Speaker 13: UNGA will also be State Department, So that's a little 551 00:26:09,840 --> 00:26:11,719 Speaker 13: bit different obviously than the Secret Service. 552 00:26:11,800 --> 00:26:14,280 Speaker 14: But I think listen what happened. 553 00:26:14,320 --> 00:26:16,720 Speaker 13: I was on your show shortly after what happened with 554 00:26:16,760 --> 00:26:19,920 Speaker 13: the Butler situation was there were a lot of mistakes. 555 00:26:20,400 --> 00:26:22,399 Speaker 13: There were a lot of mistakes made, whether it was 556 00:26:22,440 --> 00:26:25,119 Speaker 13: because of their big and stretched or not. But I 557 00:26:25,640 --> 00:26:28,080 Speaker 13: think that the president in the United States is one 558 00:26:28,119 --> 00:26:31,760 Speaker 13: of the most is the most secure person in the world. 559 00:26:31,920 --> 00:26:36,200 Speaker 13: Maybe Putin's it's just the same. But I have faith 560 00:26:36,200 --> 00:26:39,040 Speaker 13: in our in our secret service, and there has been 561 00:26:39,080 --> 00:26:42,800 Speaker 13: a big revamp that's happened. But a lot of these 562 00:26:43,240 --> 00:26:45,520 Speaker 13: a lot of these foreign dignitaries that will be here 563 00:26:45,880 --> 00:26:48,040 Speaker 13: will have their own security as well. But it's a 564 00:26:48,080 --> 00:26:50,680 Speaker 13: logistical nightmare. I get completely where you're going. 565 00:26:50,760 --> 00:26:52,720 Speaker 3: Yes, absolutely, let's go to New York. It's going to 566 00:26:52,720 --> 00:26:53,600 Speaker 3: be a blast. 567 00:26:54,920 --> 00:26:57,200 Speaker 2: A lot of We actually will be in New York 568 00:26:57,600 --> 00:26:59,520 Speaker 2: next week for the President's address, and we're going to 569 00:26:59,520 --> 00:27:02,959 Speaker 2: bring you spect coverage of the Bloomberg Global Business Forum 570 00:27:03,119 --> 00:27:06,320 Speaker 2: the very day after. This is an interesting moment that 571 00:27:06,359 --> 00:27:08,560 Speaker 2: we're in here, Ashley, and it's a pleasure to have 572 00:27:09,280 --> 00:27:12,680 Speaker 2: yourself and others who have some grace to talk about this. 573 00:27:12,680 --> 00:27:14,440 Speaker 2: This is the way we're supposed to do this around here. 574 00:27:14,600 --> 00:27:17,920 Speaker 2: I appreciate it as always. Republican strategist Ashley Davis, partner 575 00:27:17,920 --> 00:27:20,320 Speaker 2: at S three Group, Stay with us on Balance of Power. 576 00:27:20,359 --> 00:27:22,120 Speaker 3: We'll have much more coming up after this. 577 00:27:26,240 --> 00:27:29,720 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 578 00:27:29,760 --> 00:27:32,840 Speaker 1: us live weekdays at noon and five pm Eastern on 579 00:27:32,960 --> 00:27:36,200 Speaker 1: Apple Cocklay and Android Auto with the Bloomberg Business App. 580 00:27:36,240 --> 00:27:39,239 Speaker 1: You can also listen live on Amazon Alexa from our 581 00:27:39,280 --> 00:27:44,080 Speaker 1: flagship New York station. Just say Alexa, play Bloomberg eleven thirty. 582 00:27:45,240 --> 00:27:48,560 Speaker 2: The True Connection of Washington and Wall Street, and around 583 00:27:48,560 --> 00:27:51,880 Speaker 2: this time tomorrow will be in special coverage, special fed 584 00:27:52,000 --> 00:27:57,200 Speaker 2: coverage with the crew in New York. The outcome seems 585 00:27:57,760 --> 00:28:00,359 Speaker 2: fairly well determined. It's a quarter point right, Tell me 586 00:28:00,400 --> 00:28:03,040 Speaker 2: if I'm wrong. The big question is the conversation that 587 00:28:03,119 --> 00:28:06,359 Speaker 2: takes place in the news conference afterward. Knowing that right now, 588 00:28:06,600 --> 00:28:09,080 Speaker 2: just imagine to be a fly on the wall. It 589 00:28:09,160 --> 00:28:12,400 Speaker 2: is entirely possible. Lisa Cook and Steven Myron, who are 590 00:28:12,400 --> 00:28:14,760 Speaker 2: in the same room, are sitting right next to each 591 00:28:14,760 --> 00:28:18,520 Speaker 2: other based on the seniority that dictates everyone's position around 592 00:28:18,520 --> 00:28:21,600 Speaker 2: the table. Learn that from Michael McKee earlier today. And 593 00:28:21,640 --> 00:28:24,720 Speaker 2: so what will this meeting bring and will it be justified? 594 00:28:24,720 --> 00:28:27,480 Speaker 2: We're joined now by Kitty Richards, Senior Strategic Advisor, at 595 00:28:27,480 --> 00:28:30,920 Speaker 2: the groundwork collaborative. Former official at the US Department of 596 00:28:30,960 --> 00:28:34,240 Speaker 2: the Treasury in the Biden administration, Kitty, It's always great 597 00:28:34,280 --> 00:28:34,600 Speaker 2: to have you. 598 00:28:34,680 --> 00:28:37,200 Speaker 3: Happy FED Day almost thanks for having me. 599 00:28:37,680 --> 00:28:42,400 Speaker 2: I'm wondering your thoughts here, just broadly, with all of 600 00:28:42,480 --> 00:28:46,600 Speaker 2: the confrontation and drama that has surrounded this meeting. They're 601 00:28:46,640 --> 00:28:50,760 Speaker 2: behind closed doors now. Culturally speaking, can the FED handle this? 602 00:28:52,280 --> 00:28:54,160 Speaker 15: I think that the Fed has been put in an 603 00:28:54,240 --> 00:28:59,760 Speaker 15: unprecedented situation. That said, as you alluded to, we pretty 604 00:28:59,800 --> 00:29:02,280 Speaker 15: much think we know what's going to happen with the 605 00:29:02,280 --> 00:29:05,640 Speaker 15: interest rate decision. The FED has been signaling for quite 606 00:29:05,640 --> 00:29:09,480 Speaker 15: some time that they were seeing interest rate cuts on 607 00:29:09,600 --> 00:29:14,080 Speaker 15: the horizon, but not yet. I think markets and the 608 00:29:14,080 --> 00:29:17,080 Speaker 15: signals we've been getting from various FED governors from across 609 00:29:17,120 --> 00:29:20,200 Speaker 15: the political spectrum all point to a. 610 00:29:20,200 --> 00:29:21,320 Speaker 4: Quarter point rate cut. 611 00:29:22,240 --> 00:29:23,080 Speaker 14: In some ways. 612 00:29:23,240 --> 00:29:24,760 Speaker 4: That makes the Trump. 613 00:29:24,520 --> 00:29:29,840 Speaker 15: Administration's really vicious targeting of Lisa Cook especially surprising and 614 00:29:29,880 --> 00:29:33,680 Speaker 15: potentially counterproductive. The reason that we all think that the 615 00:29:33,720 --> 00:29:35,680 Speaker 15: Fed is going to be cutting rates is that we've 616 00:29:35,720 --> 00:29:40,560 Speaker 15: seen significant deterioration in the labor market between last month's 617 00:29:40,640 --> 00:29:44,960 Speaker 15: job reports and the big revisions we saw. It looks 618 00:29:45,000 --> 00:29:47,920 Speaker 15: like the labor market has been softer for longer than 619 00:29:47,960 --> 00:29:53,040 Speaker 15: policymakers understood, and now we're seeing a market slowing. We're 620 00:29:53,080 --> 00:29:57,080 Speaker 15: seeing job openings below the level of job seekers for 621 00:29:57,160 --> 00:30:00,920 Speaker 15: the first time in several years. And we've seen a 622 00:30:00,960 --> 00:30:05,240 Speaker 15: spike in the black unemployment rate, which is both troubling 623 00:30:05,360 --> 00:30:10,280 Speaker 15: for black workers and often a harbinger of further softening 624 00:30:10,280 --> 00:30:12,160 Speaker 15: in the labor market to come. And so all of 625 00:30:12,200 --> 00:30:16,440 Speaker 15: those things are really pointing to the FED loosening monetary 626 00:30:16,480 --> 00:30:21,080 Speaker 15: policy to try to boost that struggling labor market that's 627 00:30:21,120 --> 00:30:25,600 Speaker 15: been made more complicated by inflation, which remains elevated and 628 00:30:25,720 --> 00:30:30,480 Speaker 15: which is being driven up by the Trump administration's handling 629 00:30:30,560 --> 00:30:34,120 Speaker 15: of tariff policy. But all of those things would point 630 00:30:34,160 --> 00:30:40,520 Speaker 15: to a rate cut. Unfortunately, by undermining the federal reserves 631 00:30:40,560 --> 00:30:43,479 Speaker 15: independence in the eyes of the market, we are seeing 632 00:30:44,040 --> 00:30:46,920 Speaker 15: some signs that market participants are going to start to 633 00:30:46,960 --> 00:30:49,520 Speaker 15: worry that the FED is not going to keep inflation 634 00:30:49,720 --> 00:30:52,520 Speaker 15: under control, and that can be a self fulfilling prophecy 635 00:30:52,760 --> 00:30:55,440 Speaker 15: that actually makes it harder for them to lower real 636 00:30:55,640 --> 00:30:58,200 Speaker 15: long term interest rates, which can be very important. 637 00:30:58,720 --> 00:31:01,719 Speaker 5: The irony of this whole thing is that the market 638 00:31:01,760 --> 00:31:04,760 Speaker 5: reaction to the very fears you've laid out is ultimately 639 00:31:04,800 --> 00:31:08,520 Speaker 5: showing up on the longer term interest rate side of things, 640 00:31:08,560 --> 00:31:11,920 Speaker 5: the very piece that affects the housing market, which is 641 00:31:11,920 --> 00:31:13,960 Speaker 5: the very crisis that the White House is trying to 642 00:31:14,000 --> 00:31:17,480 Speaker 5: warn everybody about. Does a twenty five basis point or 643 00:31:17,480 --> 00:31:20,040 Speaker 5: even a fifty basis point rate cut address that. 644 00:31:20,480 --> 00:31:23,480 Speaker 15: You know, that's exactly right, that what we're seeing is 645 00:31:23,520 --> 00:31:27,280 Speaker 15: that that yield curve is getting significantly steeper. That is, 646 00:31:28,160 --> 00:31:31,480 Speaker 15: there's less and less difference between what you have to 647 00:31:31,520 --> 00:31:34,720 Speaker 15: pay to borrow short term, where the market is predicting 648 00:31:35,080 --> 00:31:38,520 Speaker 15: those interest rate cuts are going to come, and long term, 649 00:31:38,680 --> 00:31:40,959 Speaker 15: where the long term rate is really driven by the 650 00:31:40,960 --> 00:31:45,360 Speaker 15: market's expectations about future inflation. And so if what the 651 00:31:45,400 --> 00:31:48,760 Speaker 15: President is trying to do is bring down mortgage interest rates, 652 00:31:49,280 --> 00:31:51,480 Speaker 15: it's we're going to start to see you whether the 653 00:31:51,480 --> 00:31:54,960 Speaker 15: Fed is losing its ability to drive down those longer 654 00:31:55,040 --> 00:31:56,000 Speaker 15: term interest rates. 655 00:31:57,200 --> 00:32:00,280 Speaker 2: So what's the job for j Powell tomorrow? Make an 656 00:32:00,320 --> 00:32:03,680 Speaker 2: announcement on interest rates? The markets will do what they're 657 00:32:03,680 --> 00:32:06,080 Speaker 2: going to do until the news conference begins, And I 658 00:32:06,080 --> 00:32:08,640 Speaker 2: suspect that everybody in the room, including Michael McKee, is 659 00:32:08,680 --> 00:32:11,080 Speaker 2: going to be asking about a lot of difficult stuff 660 00:32:11,080 --> 00:32:14,840 Speaker 2: that he doesn't want to talk about. Lisa Cook, Steven Myron. 661 00:32:14,880 --> 00:32:16,680 Speaker 2: Is he going to go back to the White House 662 00:32:17,160 --> 00:32:19,720 Speaker 2: the renovations for crying out loud at the ECCHOS building. 663 00:32:19,720 --> 00:32:22,840 Speaker 2: There's so much that doesn't include data that reporters want 664 00:32:22,880 --> 00:32:23,400 Speaker 2: to ask about. 665 00:32:23,400 --> 00:32:25,160 Speaker 3: Does that also cloud the picture for the chair? 666 00:32:25,800 --> 00:32:28,080 Speaker 15: I imagine that he is going to try it every 667 00:32:28,120 --> 00:32:31,840 Speaker 15: turn to bring folks back to the conversation about data 668 00:32:32,240 --> 00:32:35,680 Speaker 15: and reinforce the idea that the FED is just moving 669 00:32:35,720 --> 00:32:39,640 Speaker 15: along business as usual, not getting caught in the noise 670 00:32:39,800 --> 00:32:43,560 Speaker 15: or the political football, and really just continuing to make 671 00:32:43,680 --> 00:32:47,640 Speaker 15: data informed decisions. Because for the FED to be able 672 00:32:47,680 --> 00:32:50,880 Speaker 15: to do their job and affect those longer term interest rates, 673 00:32:51,120 --> 00:32:55,120 Speaker 15: they really need to signal that they still have a 674 00:32:55,160 --> 00:32:57,880 Speaker 15: steady hand of the till and that they are going 675 00:32:57,920 --> 00:33:00,640 Speaker 15: to be making data informed decisions that can then be 676 00:33:00,720 --> 00:33:04,680 Speaker 15: relied on to move the markets in the ways that 677 00:33:04,720 --> 00:33:05,480 Speaker 15: they're supposed to. 678 00:33:07,360 --> 00:33:10,720 Speaker 5: The Donald Trump's tariff policy is what's muddying the water. 679 00:33:11,040 --> 00:33:14,400 Speaker 5: It feels like, even though there's been a bipartisan consensus 680 00:33:14,440 --> 00:33:17,200 Speaker 5: that rate cuts is what this economy needs, even just 681 00:33:17,200 --> 00:33:20,920 Speaker 5: a normalization of rates, if not ultimately stimulus. 682 00:33:21,480 --> 00:33:23,520 Speaker 3: But if you look at the data, it feels like. 683 00:33:23,760 --> 00:33:26,880 Speaker 5: There's arguments to be made here that the US has 684 00:33:26,920 --> 00:33:29,880 Speaker 5: been able to absorb higher tariffs and higher rates and 685 00:33:29,880 --> 00:33:32,600 Speaker 5: it hasn't affected the end consumer in the way that 686 00:33:32,760 --> 00:33:36,440 Speaker 5: maybe we thought of on April second, your thoughts is it? 687 00:33:37,120 --> 00:33:40,080 Speaker 15: You know, we have seen prices begin to rise, and 688 00:33:40,160 --> 00:33:45,080 Speaker 15: one of the complicated things about the tariffs is twofold one. 689 00:33:45,720 --> 00:33:49,520 Speaker 15: Just the chaos around what are tariffs, what will they be, 690 00:33:49,600 --> 00:33:52,479 Speaker 15: what will they be in ninety days creates a lot 691 00:33:52,520 --> 00:33:56,160 Speaker 15: of uncertainty that makes it difficult to invest. The other 692 00:33:56,240 --> 00:34:00,240 Speaker 15: complicated thing about predicting when consumers would start to see 693 00:34:00,240 --> 00:34:03,560 Speaker 15: price increases is that there's often a big lag on 694 00:34:03,600 --> 00:34:09,399 Speaker 15: those tariffs. You know, companies place orders retailers for Christmas 695 00:34:09,440 --> 00:34:12,760 Speaker 15: starting six months in advance, right, we have shipping times. 696 00:34:13,080 --> 00:34:18,400 Speaker 15: We did see a pullback around Liberation Day, and then 697 00:34:18,440 --> 00:34:21,280 Speaker 15: we saw that filter into prices. 698 00:34:20,920 --> 00:34:22,080 Speaker 4: Over the following months. 699 00:34:22,640 --> 00:34:25,799 Speaker 15: At the time, many analysts were saying, you have to 700 00:34:25,840 --> 00:34:28,680 Speaker 15: watch and wait, and we are seeing those prices go up. 701 00:34:29,400 --> 00:34:30,600 Speaker 4: You know, as you said. 702 00:34:30,440 --> 00:34:35,280 Speaker 15: I do think there has been a lot of strong 703 00:34:35,480 --> 00:34:39,840 Speaker 15: indication that the FED should have begun normalizing rates a 704 00:34:39,880 --> 00:34:40,560 Speaker 15: lot sooner. 705 00:34:40,920 --> 00:34:42,839 Speaker 4: I was on the show almost. 706 00:34:42,560 --> 00:34:48,120 Speaker 15: Two years ago arguing that housing prices and mortgage prices 707 00:34:48,840 --> 00:34:53,120 Speaker 15: were really weighing on consumers and that the inflationary period 708 00:34:53,280 --> 00:34:57,080 Speaker 15: from the pandemic supply chain chain shocks had largely worked 709 00:34:57,120 --> 00:35:00,319 Speaker 15: its way through. And I do think that you're right 710 00:35:00,360 --> 00:35:04,319 Speaker 15: that Trump's tariff policies have made it more difficult for 711 00:35:04,360 --> 00:35:07,200 Speaker 15: the FED to engage in the kind of rate cutting 712 00:35:07,719 --> 00:35:09,279 Speaker 15: that many people were advocating for. 713 00:35:09,560 --> 00:35:12,239 Speaker 5: But if there's a time for prices to go up 714 00:35:12,239 --> 00:35:15,080 Speaker 5: for the American consumer, is this the right time? And 715 00:35:15,120 --> 00:35:17,520 Speaker 5: I say that with the caveat of we're still sitting 716 00:35:17,560 --> 00:35:21,560 Speaker 5: on COVID era stimulus, we're still sitting on elevated savings 717 00:35:21,560 --> 00:35:23,840 Speaker 5: as kind of the broad American consumer. 718 00:35:23,520 --> 00:35:24,799 Speaker 14: Retirement savings are up. 719 00:35:25,160 --> 00:35:28,399 Speaker 5: Loans aren't as much of a burden it says they 720 00:35:28,560 --> 00:35:30,960 Speaker 5: were saved three years ago because so many people have 721 00:35:31,000 --> 00:35:33,120 Speaker 5: paid off their debt. If there's a time for the 722 00:35:33,160 --> 00:35:36,640 Speaker 5: American consumer to absorb TEARFF costs, is that now? 723 00:35:37,200 --> 00:35:37,440 Speaker 8: You know? 724 00:35:37,760 --> 00:35:40,680 Speaker 15: I'd be very careful when thinking about things like retirement 725 00:35:40,760 --> 00:35:45,160 Speaker 15: savings being up. It's true that people who have significant 726 00:35:45,320 --> 00:35:51,080 Speaker 15: retirement portfolios have seen asset prices rise dramatically. Also, people 727 00:35:51,080 --> 00:35:54,600 Speaker 15: who already own a home have seen those asset prices 728 00:35:54,680 --> 00:35:58,879 Speaker 15: rise dramatically. That has driven up wealth for people who 729 00:35:58,920 --> 00:36:01,840 Speaker 15: have substantial holding in the stock market and own a home. 730 00:36:02,520 --> 00:36:05,279 Speaker 15: That is not the majority of Americans. And so I 731 00:36:05,320 --> 00:36:09,319 Speaker 15: think working people are really being squeezed now. They're being 732 00:36:09,360 --> 00:36:14,000 Speaker 15: squeezed on both ends by altering labor market and rising prices, 733 00:36:14,239 --> 00:36:18,279 Speaker 15: and those consumer goods prices and things like groceries and 734 00:36:18,400 --> 00:36:23,120 Speaker 15: housing costs. Those are a big, big part of the 735 00:36:23,160 --> 00:36:26,440 Speaker 15: typical famili's budget. Less so the kind of folks who 736 00:36:26,520 --> 00:36:29,719 Speaker 15: are seeing those asset prices appreciate and seeing their wealth 737 00:36:29,760 --> 00:36:30,160 Speaker 15: go up. 738 00:36:30,719 --> 00:36:32,359 Speaker 3: Great to have you with us, Kitty. Just to be clear, 739 00:36:32,400 --> 00:36:34,400 Speaker 3: you're expecting a quarter point tomorrow, right. 740 00:36:34,640 --> 00:36:36,920 Speaker 4: That's what the markets seemed to be predicting. 741 00:36:37,239 --> 00:36:39,320 Speaker 2: Great to think you've been coming back for two years. 742 00:36:39,520 --> 00:36:41,920 Speaker 2: It's wonderful as always to spend time with Kittie Richards, 743 00:36:42,040 --> 00:36:46,680 Speaker 2: senior strategic advisor, groundwork collaborative, former Treasury official in the 744 00:36:46,680 --> 00:36:49,440 Speaker 2: Biden administration. Keep this conversation in mind right around this 745 00:36:49,520 --> 00:36:52,400 Speaker 2: time tomorrow as we're waiting for the headlines to roll 746 00:36:52,480 --> 00:36:55,080 Speaker 2: on infrast rates and waiting for the news conference to begin. 747 00:36:55,200 --> 00:36:58,640 Speaker 2: We'll have special FED coverage one thirty pm Eastern Time 748 00:36:59,040 --> 00:37:02,240 Speaker 2: right here on bloember TV and radio. Thanks for listening 749 00:37:02,239 --> 00:37:05,520 Speaker 2: to the Balance of Power podcast. Make sure to subscribe 750 00:37:05,600 --> 00:37:08,279 Speaker 2: if you haven't already, at Apple, Spotify, or wherever you 751 00:37:08,320 --> 00:37:11,080 Speaker 2: get your podcasts, and you can find us live every 752 00:37:11,120 --> 00:37:15,440 Speaker 2: weekday from Washington, DC at Noontimeeastern at Bloomberg dot com.