1 00:00:00,880 --> 00:00:04,360 Speaker 1: You're listening to the Bloomberg Sound on podcast. Catch us 2 00:00:04,400 --> 00:00:07,560 Speaker 1: live weekdays at one Eastern on Bloomberg dot com, the 3 00:00:07,640 --> 00:00:10,760 Speaker 1: iHeartRadio app and the Bloomberg Business app, or listen on 4 00:00:10,800 --> 00:00:12,800 Speaker 1: demand wherever you get your podcasts. 5 00:00:13,840 --> 00:00:17,840 Speaker 2: Job's Day brings us something for just about everyone, as 6 00:00:17,960 --> 00:00:21,440 Speaker 2: job gains moderate smaller than expect, an increase in payrolls, 7 00:00:21,520 --> 00:00:24,239 Speaker 2: unemployment rate falling back to three point six percent, but 8 00:00:24,320 --> 00:00:28,639 Speaker 2: also participation rising, wages up, maybe too much for some. 9 00:00:29,600 --> 00:00:31,040 Speaker 2: And we're going to talk about the data in a 10 00:00:31,040 --> 00:00:34,120 Speaker 2: moment with Acting Labor Secretary Julie Sue, after we go 11 00:00:34,159 --> 00:00:37,320 Speaker 2: to school with Bloomberg Economics editor Michael McKee from World 12 00:00:37,360 --> 00:00:38,480 Speaker 2: Headquarters in New York. 13 00:00:38,520 --> 00:00:40,960 Speaker 3: Michael, great to have you on a Job's Day here. 14 00:00:41,000 --> 00:00:44,360 Speaker 2: What did we learn in the varied data, if I 15 00:00:44,400 --> 00:00:46,600 Speaker 2: can call it, that that actually matters for the FED 16 00:00:46,640 --> 00:00:47,840 Speaker 2: and the future of interest rates? 17 00:00:47,880 --> 00:00:50,520 Speaker 4: Well, I loved what you started the show by saying, 18 00:00:50,680 --> 00:00:53,479 Speaker 4: forget everything you knew yesterday, right, because of course, everybody 19 00:00:53,800 --> 00:00:57,000 Speaker 4: yesterday look at that ADP report of the Hall jobs 20 00:00:57,280 --> 00:00:59,640 Speaker 4: and thought we were going to have a major improvement 21 00:00:59,640 --> 00:01:01,800 Speaker 4: this time. But instead we just get a strong report 22 00:01:02,080 --> 00:01:04,640 Speaker 4: and it is a strong report, because two hundred and 23 00:01:04,640 --> 00:01:07,760 Speaker 4: six thousand is still more than double the number of 24 00:01:07,840 --> 00:01:10,399 Speaker 4: jobs you need to create to absorb new entrance to 25 00:01:10,440 --> 00:01:14,200 Speaker 4: the labor force. So we're still looking at at a 26 00:01:14,240 --> 00:01:18,319 Speaker 4: strong economy at three point six percent unemployment, and we're 27 00:01:18,400 --> 00:01:23,160 Speaker 4: still seeing workers get raises four point four percent annual rate, 28 00:01:23,560 --> 00:01:27,039 Speaker 4: which is we're likely to find out next to Wednesday 29 00:01:27,040 --> 00:01:30,440 Speaker 4: when we get the CPI report that it is above inflation, 30 00:01:30,600 --> 00:01:33,120 Speaker 4: so people are actually making more than they're losing to 31 00:01:33,240 --> 00:01:37,240 Speaker 4: inflation for a change. Now that said, there are some 32 00:01:37,680 --> 00:01:42,520 Speaker 4: things within it that are somewhat concerning. We did see 33 00:01:43,000 --> 00:01:48,800 Speaker 4: the average hourly earnings tick up a bit, which was 34 00:01:48,880 --> 00:01:52,160 Speaker 4: kind of a surprise. People thought that companies were cutting 35 00:01:52,200 --> 00:01:54,600 Speaker 4: back a little bit. And then the thing that is 36 00:01:54,640 --> 00:01:57,880 Speaker 4: going to be concerning to folks in Washington is the 37 00:01:58,000 --> 00:02:02,880 Speaker 4: unemployment rate for minorities up significantly. The unemployment rate for 38 00:02:03,280 --> 00:02:08,639 Speaker 4: black workers is now about five point is it six 39 00:02:08,680 --> 00:02:12,359 Speaker 4: percent went up from five point seven and for Hispanics 40 00:02:12,360 --> 00:02:17,120 Speaker 4: four point three over four. So that was what the 41 00:02:17,120 --> 00:02:20,720 Speaker 4: Fed was trying to do. Remember, we kept the rates 42 00:02:20,760 --> 00:02:24,160 Speaker 4: lower for longer because they wanted everybody to get a job. 43 00:02:24,440 --> 00:02:26,840 Speaker 4: So now how does that affect policy going forward. 44 00:02:27,440 --> 00:02:30,960 Speaker 2: After the ADP report you mentioned yesterday, people thought, oh 45 00:02:31,000 --> 00:02:32,480 Speaker 2: my god, are we in for it? He came in 46 00:02:32,520 --> 00:02:35,600 Speaker 2: more than twice. Expectations are we starting to kind of 47 00:02:35,639 --> 00:02:39,440 Speaker 2: doubt the credibility of question the credibility of that data, 48 00:02:39,520 --> 00:02:40,600 Speaker 2: or what's with all the noise. 49 00:02:41,040 --> 00:02:45,640 Speaker 4: Well, there's been some question about how accurate the picture 50 00:02:46,280 --> 00:02:50,640 Speaker 4: is for the labor market because there are some things 51 00:02:50,680 --> 00:02:55,560 Speaker 4: that the government does to massage the numbers. They have 52 00:02:55,600 --> 00:02:58,359 Speaker 4: a birth death model because they can't account for all 53 00:02:58,400 --> 00:03:01,920 Speaker 4: of the jobs that are created by small companies just 54 00:03:01,960 --> 00:03:04,320 Speaker 4: coming into business each month they're not in the database, 55 00:03:04,639 --> 00:03:07,440 Speaker 4: and then of course some go out of business this month, 56 00:03:07,480 --> 00:03:10,680 Speaker 4: though there was almost no change based on the birth 57 00:03:10,760 --> 00:03:13,679 Speaker 4: death model, so that kind of throws that argument out 58 00:03:13,720 --> 00:03:17,359 Speaker 4: the window. And there are others where they impute the 59 00:03:17,480 --> 00:03:22,919 Speaker 4: number of jobs because it's too small of a sample 60 00:03:23,000 --> 00:03:26,560 Speaker 4: to get a good national view. And then we've seen 61 00:03:26,600 --> 00:03:31,800 Speaker 4: some other numbers like jobless claims inflated by a fraud. 62 00:03:32,680 --> 00:03:35,680 Speaker 4: So there are questions about how accurate the data is, 63 00:03:35,720 --> 00:03:40,360 Speaker 4: but it's reasonably enough accurate that you can assume that 64 00:03:40,440 --> 00:03:42,720 Speaker 4: we still have a fairly strong labor market. 65 00:03:42,880 --> 00:03:45,400 Speaker 2: And two more hikes that the view on the FED 66 00:03:45,600 --> 00:03:47,080 Speaker 2: hasn't changed much this morning. 67 00:03:47,760 --> 00:03:50,680 Speaker 4: No, the view hasn't changed at all. The markets are 68 00:03:50,760 --> 00:03:52,880 Speaker 4: pricing in. I think we've still got about a ninety 69 00:03:52,880 --> 00:03:55,640 Speaker 4: percent chance of a rate increase on the twenty sixth. 70 00:03:55,880 --> 00:03:59,120 Speaker 4: The question that is up in the air is September. 71 00:03:59,160 --> 00:04:02,000 Speaker 4: Had we had it even stronger report today, then they 72 00:04:02,040 --> 00:04:04,840 Speaker 4: probably would be wall Stree'd be betting on a September 73 00:04:04,920 --> 00:04:08,480 Speaker 4: rate increase. At the moment, there's only about a fifteen 74 00:04:08,480 --> 00:04:13,760 Speaker 4: to twenty five percent chance for September and November. That'll 75 00:04:13,800 --> 00:04:16,360 Speaker 4: probably resolve itself as we get closer to those dates 76 00:04:16,360 --> 00:04:18,080 Speaker 4: and we see what future numbers we get. 77 00:04:18,600 --> 00:04:18,920 Speaker 5: Michael. 78 00:04:18,960 --> 00:04:21,160 Speaker 2: Great to have you as always helping us look under 79 00:04:21,200 --> 00:04:23,920 Speaker 2: the hood here the great Michael McKee, Bloomberg Economics Editor 80 00:04:24,320 --> 00:04:26,360 Speaker 2: on sound On. And we do expect to hear from 81 00:04:26,360 --> 00:04:28,560 Speaker 2: the President on this later on today. He has an 82 00:04:28,560 --> 00:04:32,880 Speaker 2: appearance scheduled for this afternoon about something unrelated, but we 83 00:04:32,920 --> 00:04:36,599 Speaker 2: do expect to hear him talk about the job's data 84 00:04:36,760 --> 00:04:39,719 Speaker 2: this morning. But let's go to the source right now. 85 00:04:39,720 --> 00:04:44,440 Speaker 2: The Acting Secretary of Labor, Julie Sue, making her first 86 00:04:44,520 --> 00:04:47,960 Speaker 2: appearance here on sound On with us right now, Madam Secretary, 87 00:04:48,040 --> 00:04:49,360 Speaker 2: welcome to Bloomberg Radio. 88 00:04:50,080 --> 00:04:51,920 Speaker 6: Thank you very much, so good to be here. 89 00:04:52,120 --> 00:04:54,159 Speaker 2: Well, it's great to have you as we try to 90 00:04:54,560 --> 00:04:56,720 Speaker 2: understand some of the trends and the cross currents that 91 00:04:56,760 --> 00:04:59,200 Speaker 2: are happening in the job market. This came in below 92 00:04:59,279 --> 00:05:02,320 Speaker 2: forecast for the first time in something like fifteen months, 93 00:05:02,320 --> 00:05:04,760 Speaker 2: I understand, and we're starting to see a little bit 94 00:05:04,760 --> 00:05:07,520 Speaker 2: of cooling. Are you worried that higher interest rates are 95 00:05:07,560 --> 00:05:09,719 Speaker 2: finally taking hold on the job market. 96 00:05:10,720 --> 00:05:13,960 Speaker 6: Well, this is a very strong jobs report. It's a 97 00:05:14,120 --> 00:05:17,479 Speaker 6: job report that indicates steady and stable growth, which is 98 00:05:17,520 --> 00:05:21,000 Speaker 6: what we want. It's two hundred and nine thousand jobs, 99 00:05:21,200 --> 00:05:24,239 Speaker 6: which all together is now thirteen point one million jobs 100 00:05:24,240 --> 00:05:27,719 Speaker 6: created since the President came into office. It might be 101 00:05:27,760 --> 00:05:30,479 Speaker 6: worth noting that after the Great Recession of two thousand 102 00:05:30,480 --> 00:05:33,719 Speaker 6: and eight, it took about ten years to get to 103 00:05:33,800 --> 00:05:37,760 Speaker 6: this kind of recovery. And it's combined with an unemployment 104 00:05:37,800 --> 00:05:41,840 Speaker 6: rate of three point six percent. And as you know, 105 00:05:42,160 --> 00:05:45,480 Speaker 6: I mentioned the trend about job creation. I'll also mentioned 106 00:05:45,520 --> 00:05:48,840 Speaker 6: when it comes to unemployment. This is the seventeenth straight 107 00:05:48,880 --> 00:05:51,120 Speaker 6: month that we've seen an unemployment rate of less than 108 00:05:51,480 --> 00:05:54,120 Speaker 6: four percent, and that hasn't happened since the nineteen sixties. 109 00:05:54,160 --> 00:05:57,719 Speaker 6: So overall, this is a sign that the president's economic 110 00:05:57,800 --> 00:06:01,280 Speaker 6: plan is working, that Bidenomics makes sense, that we're moving 111 00:06:01,320 --> 00:06:03,840 Speaker 6: to a state of steady and stable growth. 112 00:06:04,040 --> 00:06:08,159 Speaker 2: We saw wages increase quite a bit, average hourly earnings 113 00:06:08,480 --> 00:06:12,000 Speaker 2: of four point four percent. The analysis from Bloomberg Economics 114 00:06:12,040 --> 00:06:14,480 Speaker 2: that I'm reading this morning says monthly gains and wages 115 00:06:14,520 --> 00:06:17,960 Speaker 2: and hours work to add to an inflationary impulse. I 116 00:06:18,000 --> 00:06:20,600 Speaker 2: know you want to celebrate higher wages. That's your job, right, 117 00:06:20,680 --> 00:06:23,800 Speaker 2: job growth, higher wages, but they could also force higher 118 00:06:23,839 --> 00:06:27,120 Speaker 2: interest rates. Do you worry about the corrosive effect of 119 00:06:27,160 --> 00:06:27,640 Speaker 2: that trend? 120 00:06:28,920 --> 00:06:29,440 Speaker 4: Right, so, Joe. 121 00:06:29,480 --> 00:06:32,200 Speaker 6: So we have seen last month we saw real wage 122 00:06:32,240 --> 00:06:36,880 Speaker 6: growth right where workers wages exceeded inflation. We don't know 123 00:06:36,920 --> 00:06:38,719 Speaker 6: this month yet until the inflation numbers come out, but 124 00:06:38,760 --> 00:06:41,039 Speaker 6: there are signs that the same will be true. This 125 00:06:41,160 --> 00:06:44,680 Speaker 6: president believes that in economy that does right by workers 126 00:06:45,000 --> 00:06:48,480 Speaker 6: is the best, strongest, most resilient economy that we can build. 127 00:06:49,200 --> 00:06:51,160 Speaker 6: He also believes, and we've been all hands on deck 128 00:06:51,240 --> 00:06:54,919 Speaker 6: on working to combat inflation. Inflation is half of what 129 00:06:55,000 --> 00:06:58,240 Speaker 6: it was a year ago. Right, We see that at 130 00:06:58,240 --> 00:06:59,960 Speaker 6: the pump, and we see that in the grocery store. 131 00:07:00,120 --> 00:07:01,919 Speaker 6: We see that even in things like you know, the 132 00:07:01,960 --> 00:07:04,919 Speaker 6: price of eggs, right, which is now two dollars sixty 133 00:07:04,920 --> 00:07:07,880 Speaker 6: seven cents, spread dozens, down from over three dollars a 134 00:07:07,880 --> 00:07:10,760 Speaker 6: month before, down from almost five dollars in January. So, 135 00:07:11,120 --> 00:07:13,480 Speaker 6: but you know, that's that that's a real kitchen table issue. 136 00:07:13,480 --> 00:07:17,120 Speaker 6: We do have to make sure that we are containing 137 00:07:17,240 --> 00:07:18,880 Speaker 6: the cost of things, and that is one of the 138 00:07:18,880 --> 00:07:20,280 Speaker 6: pillars of Bidenomics. 139 00:07:20,840 --> 00:07:23,080 Speaker 2: The unemployment rates, as I'm sure you know, for black 140 00:07:23,120 --> 00:07:27,280 Speaker 2: workers rose to six percent, accounting, according to our math, 141 00:07:27,360 --> 00:07:30,240 Speaker 2: for about ninety percent of the recent increase in unemployment. 142 00:07:30,280 --> 00:07:31,160 Speaker 3: Secretary, do we. 143 00:07:31,120 --> 00:07:35,200 Speaker 6: Know why, right, Thank you Joe for that question, because 144 00:07:35,200 --> 00:07:39,560 Speaker 6: we are also, you know, very focused on you know 145 00:07:39,560 --> 00:07:43,040 Speaker 6: what the present calls, you know, an equitable economic recovery, 146 00:07:43,560 --> 00:07:45,480 Speaker 6: making sure that no community is left behind. 147 00:07:45,560 --> 00:07:45,680 Speaker 4: Right. 148 00:07:45,680 --> 00:07:48,000 Speaker 6: That's his whole vision of building an economy from the 149 00:07:48,040 --> 00:07:51,400 Speaker 6: middle out and the bottom up. And by many indicators, 150 00:07:51,400 --> 00:07:54,440 Speaker 6: black workers have been at the bottom or left out, 151 00:07:54,480 --> 00:07:58,440 Speaker 6: whether it's you know, good jobs, whether it's wages, whether 152 00:07:58,480 --> 00:08:01,400 Speaker 6: it's wealth, and so so it's very very important for 153 00:08:01,480 --> 00:08:05,680 Speaker 6: us to stay focused on equity. I will stay here Again, 154 00:08:05,960 --> 00:08:08,360 Speaker 6: the trends tell a different story. 155 00:08:09,080 --> 00:08:09,400 Speaker 2: All. 156 00:08:09,760 --> 00:08:13,440 Speaker 6: The unemployment rate for all communities is at historic lows. 157 00:08:13,560 --> 00:08:17,200 Speaker 6: That does include African Americans, and the gap between the 158 00:08:17,200 --> 00:08:20,400 Speaker 6: white unemployment rate and the black unemployment rate is also low. 159 00:08:20,560 --> 00:08:23,440 Speaker 6: Same for the gap between white unemployment and Latino white 160 00:08:23,480 --> 00:08:26,640 Speaker 6: employment and Asian and so we know there's more work 161 00:08:26,680 --> 00:08:28,080 Speaker 6: to do and we're going to keep on doing it. 162 00:08:28,120 --> 00:08:32,880 Speaker 6: But overall the trends indicate still not just strong recovery, 163 00:08:32,920 --> 00:08:35,800 Speaker 6: but equ equitable growth and equitable economy. 164 00:08:35,920 --> 00:08:39,440 Speaker 2: So is this a rising tide lifts all boats approach 165 00:08:39,559 --> 00:08:42,000 Speaker 2: in your view? Or are there specific things that the 166 00:08:42,040 --> 00:08:45,200 Speaker 2: administration Labor Department can do to get to that number. 167 00:08:46,480 --> 00:08:50,080 Speaker 6: So I think a key to Bidenomics is the idea 168 00:08:50,120 --> 00:08:53,240 Speaker 6: that we have to invest in America, invest in the 169 00:08:53,240 --> 00:08:56,880 Speaker 6: middle class, create good middle class jobs, and then create 170 00:08:56,920 --> 00:08:59,640 Speaker 6: access for all to those jobs. That includes investing in 171 00:08:59,679 --> 00:09:02,800 Speaker 6: America and workers. He rejects this idea that the trickle 172 00:09:02,840 --> 00:09:06,720 Speaker 6: down idea, right, reject idea if we cut taxes for 173 00:09:06,800 --> 00:09:08,959 Speaker 6: corporations of rich that somehow it's going to magically in 174 00:09:09,080 --> 00:09:14,120 Speaker 6: order everybody's benefit. And so his economic plan is to 175 00:09:14,120 --> 00:09:18,040 Speaker 6: be very targeted toward communities that have not enjoyed economic 176 00:09:18,080 --> 00:09:21,240 Speaker 6: prosperity historically. So in the creation of these jobs, in 177 00:09:21,400 --> 00:09:24,880 Speaker 6: manufacturing jobs, in infrastructure jobs, we are very focused on 178 00:09:25,000 --> 00:09:28,160 Speaker 6: pathways for all communities, on equity, on making sure you know, 179 00:09:28,200 --> 00:09:33,680 Speaker 6: construction is an industry where we've worked with unions and 180 00:09:33,679 --> 00:09:37,160 Speaker 6: with employers to ensure greater diversity, and so making sure 181 00:09:37,160 --> 00:09:39,680 Speaker 6: that we cut down occupational segregation measure of black workers 182 00:09:39,720 --> 00:09:41,480 Speaker 6: have access to the jobs are being created is a 183 00:09:41,559 --> 00:09:43,600 Speaker 6: very high priority and it's something that Department of Labor 184 00:09:43,840 --> 00:09:44,960 Speaker 6: is very focused on doing. 185 00:09:45,040 --> 00:09:48,200 Speaker 2: You mentioned construction, and we saw some pretty healthy gains 186 00:09:48,240 --> 00:09:51,160 Speaker 2: in construction, and it just points my attention to the 187 00:09:51,200 --> 00:09:54,360 Speaker 2: participation rate which held steady, but for twenty four to 188 00:09:54,400 --> 00:09:57,400 Speaker 2: fifty four year olds jump to the highest level in 189 00:09:57,480 --> 00:09:59,760 Speaker 2: twenty one years. I thought it was a typo when 190 00:09:59,760 --> 00:10:04,439 Speaker 2: I saw this, considering that level of participation, which I gosh, 191 00:10:04,480 --> 00:10:07,560 Speaker 2: I asked your predecessor, Marty Walsh about every single month, 192 00:10:07,679 --> 00:10:10,200 Speaker 2: is where are the workers? When are they coming back? 193 00:10:10,240 --> 00:10:13,200 Speaker 2: Now that we're seeing numbers like this, do you worry 194 00:10:13,559 --> 00:10:16,760 Speaker 2: that we don't have the labor force to support all 195 00:10:16,760 --> 00:10:18,679 Speaker 2: of the construction, all the work that's going to come 196 00:10:18,720 --> 00:10:20,760 Speaker 2: with the investments of this administration. 197 00:10:21,520 --> 00:10:23,839 Speaker 6: Yeah, it's a very good question because we do hear 198 00:10:24,040 --> 00:10:28,720 Speaker 6: right concerns among employers about whether they'll have the workers again. 199 00:10:28,800 --> 00:10:32,560 Speaker 6: These numbers, you know, indicate very clearly that American workers 200 00:10:32,800 --> 00:10:35,280 Speaker 6: are back in the labor market. They're back on the job. 201 00:10:36,000 --> 00:10:40,760 Speaker 6: We've seen women return at really historic levels, you know, 202 00:10:40,800 --> 00:10:44,040 Speaker 6: the highest labor force participation for prime age working women 203 00:10:44,640 --> 00:10:47,240 Speaker 6: for the third month in a row in seventy five years. 204 00:10:48,360 --> 00:10:50,720 Speaker 6: So I think that you know, working people want want 205 00:10:50,760 --> 00:10:53,319 Speaker 6: to work. Do things to that. One is that we 206 00:10:53,480 --> 00:10:58,040 Speaker 6: have to make sure that we are aligning worker desire 207 00:10:58,120 --> 00:11:00,840 Speaker 6: to work with the employers who need them and ensuring 208 00:11:00,920 --> 00:11:04,439 Speaker 6: the job training and skills to UH to make that match. 209 00:11:04,960 --> 00:11:06,720 Speaker 6: The other is that I think that there are structural 210 00:11:06,720 --> 00:11:08,839 Speaker 6: issues that we need to address beyond just workers coming 211 00:11:08,880 --> 00:11:11,160 Speaker 6: into the labor force, which again they've shown that they 212 00:11:11,160 --> 00:11:14,720 Speaker 6: are doing. We need to address things like occupational segregation. 213 00:11:14,880 --> 00:11:16,880 Speaker 6: We need to address things like the like the cost 214 00:11:16,880 --> 00:11:20,319 Speaker 6: of care. Right, there are structural things that the President 215 00:11:20,320 --> 00:11:23,200 Speaker 6: has highlighted that if we don't address those, it's going 216 00:11:23,240 --> 00:11:26,360 Speaker 6: to be harder for for for workers who are not 217 00:11:26,520 --> 00:11:29,559 Speaker 6: working to do so, but that is all part of 218 00:11:30,240 --> 00:11:35,600 Speaker 6: uh of the plan to increase uh you know, uh 219 00:11:35,720 --> 00:11:40,440 Speaker 6: access to childcare, to improve childcare jobs, and so you know, 220 00:11:40,520 --> 00:11:42,880 Speaker 6: there's work to do, but we're in a period of 221 00:11:42,920 --> 00:11:46,240 Speaker 6: steady sustained growth and we'll conpue to do that so 222 00:11:46,280 --> 00:11:49,320 Speaker 6: that so that everybody who wants a job can get one. 223 00:11:49,800 --> 00:11:51,480 Speaker 2: I know your time is tight, Secretary. I have to 224 00:11:51,480 --> 00:11:53,840 Speaker 2: ask you about the labor standoff at UPS. We're going 225 00:11:53,880 --> 00:11:57,120 Speaker 2: to be speaking a bit later on Bloomberg TV with 226 00:11:57,280 --> 00:11:59,839 Speaker 2: the head of the Teamsters, Sean O'Brien. Are you a 227 00:12:00,120 --> 00:12:04,400 Speaker 2: thing as a mediator in talks here to avoid a strike? No? 228 00:12:05,040 --> 00:12:07,800 Speaker 6: You know, the President believes as I do in the 229 00:12:07,800 --> 00:12:12,600 Speaker 6: collective bargaining process. We believe that the parties at the 230 00:12:12,679 --> 00:12:17,400 Speaker 6: table working together, working through hard problems and coming to 231 00:12:17,440 --> 00:12:18,400 Speaker 6: win win solutions. 232 00:12:18,800 --> 00:12:19,000 Speaker 4: Uh. 233 00:12:19,160 --> 00:12:21,080 Speaker 6: Is that that that's the way it's supposed to work. 234 00:12:22,320 --> 00:12:25,760 Speaker 6: I believe that that that the that's that's what the 235 00:12:25,760 --> 00:12:28,880 Speaker 6: parties are doing, and I have every space that they'll 236 00:12:28,880 --> 00:12:33,600 Speaker 6: continue to demonstrate what unions and employers have demonstrated throughout history, 237 00:12:33,640 --> 00:12:38,040 Speaker 6: that unions build the middle class, and that that that 238 00:12:38,080 --> 00:12:40,000 Speaker 6: they can that they'll get the job done. 239 00:12:40,800 --> 00:12:44,199 Speaker 2: Are you prepared to remain acting Secretary for as long 240 00:12:44,200 --> 00:12:46,720 Speaker 2: as it takes to make this happen. Your confirmation hearing 241 00:12:46,760 --> 00:12:49,000 Speaker 2: was in April. Secretary, when's the last time you heard 242 00:12:49,000 --> 00:12:52,120 Speaker 2: from Senate leadership or Chairman Sanders about getting a vote 243 00:12:52,120 --> 00:12:52,600 Speaker 2: on the floor. 244 00:12:53,679 --> 00:12:58,559 Speaker 6: Yeah, thanks for that, Joe. So the President has nominated 245 00:12:58,559 --> 00:13:01,199 Speaker 6: me to serve as US Labor secret Terry. I've been 246 00:13:01,360 --> 00:13:05,000 Speaker 6: doing the jobs and Secretary Walsh left. I look forward 247 00:13:05,000 --> 00:13:07,840 Speaker 6: to continue to do it. I am honored by the 248 00:13:07,880 --> 00:13:11,880 Speaker 6: President's confidence in me. I also appreciate the support of 249 00:13:11,920 --> 00:13:16,480 Speaker 6: many many Senators and remain hope about confirmation. But in 250 00:13:16,520 --> 00:13:18,720 Speaker 6: the meantime, I'm going to do the jobs the President 251 00:13:18,720 --> 00:13:20,800 Speaker 6: asked me to do and that the American people need 252 00:13:20,840 --> 00:13:21,400 Speaker 6: me to do well. 253 00:13:21,440 --> 00:13:22,880 Speaker 2: We hope that we'll be talking with you on a 254 00:13:22,920 --> 00:13:27,559 Speaker 2: monthly basis here when this important data are released. Madam Secretary, 255 00:13:27,559 --> 00:13:29,679 Speaker 2: We thank you for the time today on Bloomberg Radio. 256 00:13:30,520 --> 00:13:32,200 Speaker 6: That sounds great, Joe, thank you so much. 257 00:13:32,679 --> 00:13:36,040 Speaker 2: Hopefully we'll continue the conversation on a monthly basis. Interesting 258 00:13:36,360 --> 00:13:39,880 Speaker 2: that they do now have the Acting Labor Secretary out 259 00:13:39,920 --> 00:13:45,000 Speaker 2: in front of cameras and microphones for this monthly indicator, 260 00:13:45,040 --> 00:13:48,000 Speaker 2: of course, probably the most important that we track on 261 00:13:48,040 --> 00:13:50,880 Speaker 2: a monthly basis, and thanks to Michael McKee for helping 262 00:13:50,920 --> 00:13:51,400 Speaker 2: us make. 263 00:13:51,320 --> 00:13:53,160 Speaker 3: Sense of it. Coming up, we're going to assemble the panel. 264 00:13:53,240 --> 00:13:55,920 Speaker 2: Jeanie Shanzano and Rick Davis are with us here on 265 00:13:55,960 --> 00:13:57,960 Speaker 2: the Friday edition of Sound On with a lot to 266 00:13:58,000 --> 00:14:01,480 Speaker 2: talk about, not only the overall jobs picture that we're 267 00:14:01,559 --> 00:14:03,720 Speaker 2: learning more about this morning, but as we just discussed 268 00:14:03,720 --> 00:14:07,400 Speaker 2: with Julie Sue, this standoff at ups looking more and 269 00:14:07,480 --> 00:14:10,680 Speaker 2: more like a potential strike that could involve some three 270 00:14:10,760 --> 00:14:14,680 Speaker 2: hundred and forty thousand transportation workers in the middle of 271 00:14:14,720 --> 00:14:16,720 Speaker 2: summer here. It's something that we're going to dig into 272 00:14:17,120 --> 00:14:19,920 Speaker 2: as well with our panel, and a bit later on, 273 00:14:20,160 --> 00:14:23,160 Speaker 2: was Marjorie Taylor Green kicked out of the House Freedom 274 00:14:23,200 --> 00:14:24,760 Speaker 2: Caucus or not? 275 00:14:25,640 --> 00:14:27,160 Speaker 3: We can't get a straight answer. 276 00:14:28,720 --> 00:14:32,080 Speaker 1: You're listening to the Bloomberg Sound On podcast. Catch the 277 00:14:32,120 --> 00:14:36,000 Speaker 1: program live weekdays at one Eastern on Bloomberg Radio, the 278 00:14:36,080 --> 00:14:39,400 Speaker 1: tune in alf, Bloomberg dot Com, and the Bloomberg Business app. 279 00:14:39,520 --> 00:14:42,400 Speaker 1: You can also listen live on Amazon Alexa from our 280 00:14:42,400 --> 00:14:47,160 Speaker 1: flagship New York station, just Say Alexa Play. Bloomberg eleven thirty. 281 00:14:48,680 --> 00:14:49,120 Speaker 3: Was this the. 282 00:14:49,080 --> 00:14:53,200 Speaker 2: Goldilocks jobs report, the headline would indicate, or is there 283 00:14:53,240 --> 00:14:56,200 Speaker 2: more to be concerned about when you look under the 284 00:14:56,200 --> 00:14:58,520 Speaker 2: hood some of the questions we've been asking this hour 285 00:14:58,560 --> 00:15:01,480 Speaker 2: in conversation with the Acting Labor Secretary in our own 286 00:15:01,800 --> 00:15:04,760 Speaker 2: Michael McKee. As we now assemble the panel to get 287 00:15:04,760 --> 00:15:07,560 Speaker 2: their take, Rick Davis and Jeanie Shanzano, of course Bloomberg 288 00:15:07,600 --> 00:15:11,120 Speaker 2: Politics contributors, knowing that Joe Biden's going to talk about 289 00:15:11,120 --> 00:15:13,920 Speaker 2: this later on today, the President has remarks scheduled for 290 00:15:14,000 --> 00:15:17,160 Speaker 2: the afternoon, and you could imagine really already what he's 291 00:15:17,200 --> 00:15:20,000 Speaker 2: going to say. This was the President yesterday in South Carolina. 292 00:15:20,120 --> 00:15:23,560 Speaker 7: Jobs he used to go to Mexico, India, Romania, and 293 00:15:23,640 --> 00:15:28,000 Speaker 7: China are now coming home to South Carolina now in 294 00:15:28,160 --> 00:15:31,480 Speaker 7: Phaze's party with Flex to make these parts here in 295 00:15:31,600 --> 00:15:36,320 Speaker 7: South Carolina, and today they're shipping the first micro inverters 296 00:15:36,800 --> 00:15:38,120 Speaker 7: made in America. 297 00:15:38,160 --> 00:15:42,320 Speaker 2: All right, part of the Bidenomics tour. Jeanie Shanzano, I 298 00:15:42,320 --> 00:15:44,400 Speaker 2: didn't realize we had a major problem losing. 299 00:15:44,280 --> 00:15:45,320 Speaker 3: Jobs to Romania. 300 00:15:46,160 --> 00:15:48,240 Speaker 2: I just have to note that here in the president 301 00:15:48,280 --> 00:15:52,080 Speaker 2: there but the news today he's going to spin this 302 00:15:52,480 --> 00:15:55,520 Speaker 2: as a win. But he also knows when you take 303 00:15:55,560 --> 00:16:00,560 Speaker 2: a look at wages, particularly that we do have a 304 00:16:00,640 --> 00:16:03,200 Speaker 2: continued inflation issue and that interest rates are going to 305 00:16:03,280 --> 00:16:03,760 Speaker 2: keep rising. 306 00:16:04,800 --> 00:16:08,800 Speaker 8: That's right. I too wasn't clear on the Romania situation, 307 00:16:08,960 --> 00:16:10,840 Speaker 8: but we'll have to keep a watch on that. But 308 00:16:10,880 --> 00:16:13,920 Speaker 8: I think he's going to echo what the secretary said, 309 00:16:13,920 --> 00:16:17,640 Speaker 8: which is Bidenomics is working. But I do think there 310 00:16:17,720 --> 00:16:21,080 Speaker 8: has to be a two pronged message here because the 311 00:16:21,120 --> 00:16:24,240 Speaker 8: good numbers and this was a good report to your point, 312 00:16:24,280 --> 00:16:27,280 Speaker 8: in Michael McKee's point, this is a good and strong 313 00:16:27,360 --> 00:16:30,880 Speaker 8: report for jobs, but the reality is politically that is 314 00:16:30,920 --> 00:16:33,160 Speaker 8: not syncing in. So he's going to have to take 315 00:16:33,160 --> 00:16:35,240 Speaker 8: a two pronged approach. He's going to have to say 316 00:16:35,280 --> 00:16:39,200 Speaker 8: these are good numbers, that said, we understand that you 317 00:16:39,240 --> 00:16:42,440 Speaker 8: are feeling strapped by the cost of living by rising inflation, 318 00:16:42,960 --> 00:16:45,560 Speaker 8: and he is going to have to say, you want 319 00:16:45,680 --> 00:16:48,800 Speaker 8: us at the helm of this, not who threatens to 320 00:16:48,840 --> 00:16:52,000 Speaker 8: come after us, Donald Trump or another Republican because if 321 00:16:52,040 --> 00:16:55,040 Speaker 8: they come in, every step we've made forward, from prescription 322 00:16:55,160 --> 00:16:59,040 Speaker 8: drugs to expanding social programs and other things is going 323 00:16:59,040 --> 00:17:00,960 Speaker 8: to be pulled back, on top of which they will 324 00:17:01,040 --> 00:17:03,960 Speaker 8: keep tax increases for the ultra wealthy. So he's got 325 00:17:03,960 --> 00:17:05,880 Speaker 8: to strike a two prong note. But he hasn't done 326 00:17:05,920 --> 00:17:07,359 Speaker 8: that yet. But that's what I hope you would do. 327 00:17:07,600 --> 00:17:09,800 Speaker 2: Well. I'll tell you Rick, he's got a problem here 328 00:17:10,240 --> 00:17:13,280 Speaker 2: when you look at the unemployment rate for black workers, 329 00:17:13,280 --> 00:17:16,000 Speaker 2: for Latino workers, double that of white workers. This is 330 00:17:16,040 --> 00:17:18,600 Speaker 2: something that he's going to have to start answering questions 331 00:17:18,640 --> 00:17:19,720 Speaker 2: about on the campaign trail. 332 00:17:19,800 --> 00:17:22,159 Speaker 9: No, yeah, Joe, I agree. I don't think this is 333 00:17:22,200 --> 00:17:25,360 Speaker 9: such a great report. One. It's going to put more 334 00:17:25,359 --> 00:17:28,399 Speaker 9: pressure on inflation, which is the kitchen table issue to 335 00:17:28,480 --> 00:17:31,120 Speaker 9: most families. Most of them aren't sitting around worrying about 336 00:17:31,280 --> 00:17:35,320 Speaker 9: jobs because considering the participation rate, everybody who wants one 337 00:17:35,400 --> 00:17:39,400 Speaker 9: has one. And yet at the same time, the bottom's 338 00:17:39,440 --> 00:17:42,440 Speaker 9: fallen out of some of these minority groups who want 339 00:17:42,480 --> 00:17:44,560 Speaker 9: to participate in on the same labor market that others 340 00:17:44,560 --> 00:17:48,399 Speaker 9: are and that's not delivering. And I think you heard 341 00:17:49,000 --> 00:17:52,840 Speaker 9: WUT Secretary Sue talk a little bit about like, you know, hey, 342 00:17:52,880 --> 00:17:54,919 Speaker 9: we're really out there trying to you know, play with 343 00:17:54,960 --> 00:17:57,639 Speaker 9: these numbers and show that there's actual progress. But in 344 00:17:57,680 --> 00:18:00,719 Speaker 9: this report, you know, unemployment of blanks blacks went up 345 00:18:01,240 --> 00:18:03,720 Speaker 9: from five point seven to six percent. You can't spin 346 00:18:03,840 --> 00:18:08,040 Speaker 9: that that actually happened. So I think this administration is facing, 347 00:18:08,200 --> 00:18:11,159 Speaker 9: you know, one critical issue, which is are we going 348 00:18:11,240 --> 00:18:14,720 Speaker 9: to live and die on a labor report through this 349 00:18:14,840 --> 00:18:16,960 Speaker 9: election or are we going to tackle the issue that 350 00:18:17,080 --> 00:18:19,920 Speaker 9: really people are care most about, and that's rising prices 351 00:18:20,600 --> 00:18:26,359 Speaker 9: fueled by inflation. And this isn't helping their anti inflationary program. 352 00:18:26,520 --> 00:18:30,720 Speaker 9: And so you know, when the FED raises rates because 353 00:18:30,720 --> 00:18:32,800 Speaker 9: of this, it's not such a great story. 354 00:18:33,200 --> 00:18:36,040 Speaker 2: And it looks like two more coming at least Genie 355 00:18:36,080 --> 00:18:39,320 Speaker 2: when you look at the participation rate, just remarkable for 356 00:18:39,359 --> 00:18:42,560 Speaker 2: the sweet spot workers twenty four to fifty four, as 357 00:18:42,560 --> 00:18:46,560 Speaker 2: I mentioned to the secretary, hitting a twenty one year high. 358 00:18:47,080 --> 00:18:49,640 Speaker 2: So if we're thinking everyone's back to work, who's coming 359 00:18:49,680 --> 00:18:51,879 Speaker 2: back to work? To Rick's point, how much. 360 00:18:51,720 --> 00:18:52,679 Speaker 3: Of a concern do we have? 361 00:18:52,880 --> 00:18:54,920 Speaker 2: And you know, it brings us to the argument of 362 00:18:54,920 --> 00:18:59,080 Speaker 2: the debate over immigration reform. We have a legitimate worker shortage. 363 00:18:59,080 --> 00:19:03,520 Speaker 8: Moving forward, we do an immigration reform depends on Congress acting, 364 00:19:03,560 --> 00:19:05,680 Speaker 8: which is why the President is going to be out 365 00:19:05,720 --> 00:19:08,520 Speaker 8: there pushing to get Democrats to take back the House 366 00:19:08,840 --> 00:19:11,840 Speaker 8: so they can make some progress. Because this has been 367 00:19:12,000 --> 00:19:15,480 Speaker 8: basically a do nothing Congress for the last year year 368 00:19:15,520 --> 00:19:17,399 Speaker 8: and a half. But you know, I think we have 369 00:19:17,440 --> 00:19:20,320 Speaker 8: to be very careful here. This is a good jobs report, 370 00:19:20,320 --> 00:19:23,639 Speaker 8: decent job growth, decent wage growth, modest decline in the 371 00:19:23,720 --> 00:19:27,159 Speaker 8: unemployment rate. I mean, yes, there are challenges, But to 372 00:19:27,280 --> 00:19:31,720 Speaker 8: Julie Sue's point, to the Secretary's point, seventeen months under 373 00:19:31,880 --> 00:19:36,040 Speaker 8: four percent unemployment, the longest since nineteen sixty, you can't 374 00:19:36,080 --> 00:19:38,320 Speaker 8: deny that that is a good number. Now, that is 375 00:19:38,359 --> 00:19:41,640 Speaker 8: not resonate, resonating politically, I get that. But to say 376 00:19:41,640 --> 00:19:45,240 Speaker 8: that the job's report wasn't at least decent or strong 377 00:19:45,760 --> 00:19:48,359 Speaker 8: is I think not to really read this Job's report. 378 00:19:48,359 --> 00:19:50,879 Speaker 8: We do have an inflation concern going forward, and the 379 00:19:50,880 --> 00:19:52,840 Speaker 8: President is going to have to address that. It is 380 00:19:52,880 --> 00:19:55,480 Speaker 8: a political challenge, but I'm not so sure it is 381 00:19:55,520 --> 00:19:58,439 Speaker 8: a numbers challenge, because let's look at what we are 382 00:19:58,440 --> 00:20:01,119 Speaker 8: facing twenty four hours ago with the ADP estimates. How 383 00:20:01,119 --> 00:20:03,840 Speaker 8: about half a million jobs. I mean, so you know 384 00:20:03,920 --> 00:20:06,280 Speaker 8: it's far better than it was twenty four hours ago. 385 00:20:06,520 --> 00:20:06,960 Speaker 1: Well, it is. 386 00:20:06,920 --> 00:20:08,600 Speaker 2: Funny, you know, it's the first time I think it 387 00:20:08,640 --> 00:20:11,719 Speaker 2: was in fifteen months, Rick that it actually came in 388 00:20:11,760 --> 00:20:14,960 Speaker 2: below targets. We've been undershooting on this thing for a 389 00:20:15,000 --> 00:20:18,040 Speaker 2: year and a half. But look, this is why the 390 00:20:18,040 --> 00:20:20,440 Speaker 2: White House defers to the FED. Right, they won't talk 391 00:20:20,480 --> 00:20:23,000 Speaker 2: about the FED rick, they don't talk about interest rates. 392 00:20:23,040 --> 00:20:25,560 Speaker 2: They're so careful about that when they come on the 393 00:20:25,560 --> 00:20:29,119 Speaker 2: air here on Bloomberg or have other public conversations. So 394 00:20:29,160 --> 00:20:31,760 Speaker 2: you can take credit for those higher wages. Right, The 395 00:20:31,760 --> 00:20:33,840 Speaker 2: inflation thing is somebody else's problem. 396 00:20:34,280 --> 00:20:36,520 Speaker 9: Well, they wanted to be someone else's problem, as you 397 00:20:36,560 --> 00:20:39,879 Speaker 9: point out, after stumbling around trying to figure out what 398 00:20:39,920 --> 00:20:44,760 Speaker 9: their administration's position was on inflation, they immediately said, oh, 399 00:20:44,800 --> 00:20:47,320 Speaker 9: but that's not you know, our problem. The problem is 400 00:20:46,960 --> 00:20:51,600 Speaker 9: their government policy, which incorporates a lot of this job 401 00:20:51,680 --> 00:20:55,440 Speaker 9: creation activity that they're talking about, and it's been successful, 402 00:20:55,440 --> 00:20:59,639 Speaker 9: almost fourteen million jobs created. That's a phenomenal success story, 403 00:21:00,040 --> 00:21:02,639 Speaker 9: but it actually has a negative impact on some of 404 00:21:02,680 --> 00:21:07,960 Speaker 9: the inflationary activity that's going on. So, and part of 405 00:21:08,000 --> 00:21:11,119 Speaker 9: the trap is, as you mentioned, the immigration. You know, 406 00:21:11,160 --> 00:21:13,320 Speaker 9: the Chamber of Commerce has been talking about this for years. 407 00:21:13,359 --> 00:21:16,320 Speaker 9: I mean, we have tens of millions of jobs that 408 00:21:16,400 --> 00:21:21,119 Speaker 9: are open that need immigration to fill. I mean, you 409 00:21:21,200 --> 00:21:23,520 Speaker 9: just don't have the people here who will pick let 410 00:21:23,640 --> 00:21:27,440 Speaker 9: us and do those kinds of jobs that actually need 411 00:21:27,480 --> 00:21:30,119 Speaker 9: to get done. So, you know, it's kind of funny 412 00:21:30,160 --> 00:21:32,960 Speaker 9: not everybody can be a union member, and that seems 413 00:21:33,000 --> 00:21:35,639 Speaker 9: to be what this administration is completely focused on. 414 00:21:36,040 --> 00:21:36,119 Speaker 7: That. 415 00:21:36,320 --> 00:21:38,480 Speaker 9: You know, only union members should be able to fill 416 00:21:38,520 --> 00:21:40,240 Speaker 9: the jobs that are unemployed. 417 00:21:40,520 --> 00:21:41,440 Speaker 3: Let's get it open. 418 00:21:41,560 --> 00:21:44,000 Speaker 2: I want to hear from you guys on the UPS situation. 419 00:21:44,080 --> 00:21:47,800 Speaker 2: You heard the secretary talk about it. Three hundred and 420 00:21:47,800 --> 00:21:51,480 Speaker 2: forty thousand workers here, Genie. How important will it be? 421 00:21:51,720 --> 00:21:53,680 Speaker 2: We can ask a lot of different questions about it, 422 00:21:54,000 --> 00:21:56,720 Speaker 2: but how important will it be for her to oversee 423 00:21:56,760 --> 00:22:01,280 Speaker 2: a successful negotiation to become the next labor secretary? 424 00:22:02,040 --> 00:22:04,359 Speaker 8: You know, I have to say, I'm not so sure 425 00:22:04,440 --> 00:22:06,920 Speaker 8: it is going to matter. I think it's critically important 426 00:22:07,040 --> 00:22:10,520 Speaker 8: for the workers at UPS, for UPS, for Americans who 427 00:22:10,680 --> 00:22:13,240 Speaker 8: need to move packages and other things. I'm not so 428 00:22:13,480 --> 00:22:16,560 Speaker 8: sure even success at this point is going to get 429 00:22:16,560 --> 00:22:19,520 Speaker 8: her through this Senate. I mean, this has been a 430 00:22:19,520 --> 00:22:23,560 Speaker 8: stalled nomination. We don't see much movement does. Senate Republicans 431 00:22:23,600 --> 00:22:28,240 Speaker 8: remain strongly opposed and moderate Democrats remain opposed. So unless 432 00:22:28,320 --> 00:22:30,919 Speaker 8: I think we see some movement with modern Democrats or 433 00:22:30,920 --> 00:22:34,080 Speaker 8: the moderate Republicans. I'm not so sure success is going 434 00:22:34,119 --> 00:22:37,040 Speaker 8: to help move that along. That said, it is critically 435 00:22:37,080 --> 00:22:41,680 Speaker 8: important that this potential strike be resolved. I mean, if 436 00:22:41,720 --> 00:22:44,720 Speaker 8: we think about it, if they go on strike, it 437 00:22:44,760 --> 00:22:48,160 Speaker 8: would be the biggest private sector strike since the nineteen fifties. 438 00:22:48,400 --> 00:22:51,560 Speaker 8: That's stunning, and it is you know, followed up on 439 00:22:51,720 --> 00:22:54,439 Speaker 8: what we talked about in December about the railway strike, 440 00:22:54,480 --> 00:22:57,240 Speaker 8: and the impact on business is small and large, and 441 00:22:57,320 --> 00:23:02,440 Speaker 8: Americans overall is dramatic, and so not to mention obviously 442 00:23:02,440 --> 00:23:05,600 Speaker 8: most importantly the workers who have a lot of a 443 00:23:05,640 --> 00:23:07,080 Speaker 8: lot of cause. And I know you're going to talk 444 00:23:07,080 --> 00:23:10,760 Speaker 8: to O'Brien, the head of the Teamsters later today, but 445 00:23:11,119 --> 00:23:14,000 Speaker 8: you know, he has some very very interesting things to 446 00:23:14,040 --> 00:23:16,920 Speaker 8: say about what they've been dealing with, particularly since the pandemic. 447 00:23:16,960 --> 00:23:20,120 Speaker 8: As ups it continues to make enormous profits. 448 00:23:20,280 --> 00:23:23,200 Speaker 2: Well Rick, politically, here not a good look for this administration, 449 00:23:23,320 --> 00:23:26,000 Speaker 2: the union friendly administration have free hundred and forty thousand 450 00:23:26,000 --> 00:23:28,160 Speaker 2: people on strike this summer, right, Yeah. 451 00:23:28,040 --> 00:23:30,520 Speaker 9: No, we saw some of this in you know, post 452 00:23:30,560 --> 00:23:34,080 Speaker 9: pandemic period where the supply chain was so disrupted that 453 00:23:34,280 --> 00:23:37,000 Speaker 9: you know, anything was going to like reflect back on 454 00:23:37,080 --> 00:23:39,959 Speaker 9: this administration in a negative way. And this will too 455 00:23:40,080 --> 00:23:45,399 Speaker 9: if ups strikes and there hold ups in throughout the 456 00:23:45,440 --> 00:23:48,240 Speaker 9: supply chain, and because they have such a huge market share, 457 00:23:49,240 --> 00:23:51,920 Speaker 9: then it's going to reflect poorly on in this administration 458 00:23:52,000 --> 00:23:55,800 Speaker 9: that has made promoting unions its mainstay. I mean, they 459 00:23:55,880 --> 00:23:58,640 Speaker 9: literally don't invite companies to the White House who don't 460 00:23:58,640 --> 00:24:02,040 Speaker 9: employ union members, and so, uh, I think this lands 461 00:24:02,160 --> 00:24:05,120 Speaker 9: right on their doorstep. And and and I'm not sure 462 00:24:05,240 --> 00:24:08,640 Speaker 9: you know what the solution is. I mean, the drivers 463 00:24:08,640 --> 00:24:11,320 Speaker 9: get paid a significant sum of money, and and and 464 00:24:11,480 --> 00:24:14,000 Speaker 9: the head of the team serves is wanting more cash 465 00:24:14,040 --> 00:24:17,480 Speaker 9: for beginning way journers, you know, who are hourly rate 466 00:24:17,600 --> 00:24:21,639 Speaker 9: workers you know in these uh in these facilities, and 467 00:24:21,640 --> 00:24:23,919 Speaker 9: and you know, like that's a hard sell because how 468 00:24:23,920 --> 00:24:26,000 Speaker 9: many of those are going to stick around. So I 469 00:24:26,000 --> 00:24:28,560 Speaker 9: think this administration better, you know, sort of jump in 470 00:24:28,640 --> 00:24:31,199 Speaker 9: whether it helps, you know, get a nomination done for 471 00:24:31,400 --> 00:24:34,240 Speaker 9: Julie Shue. I agree with with Jeanie. I think that's 472 00:24:34,240 --> 00:24:36,840 Speaker 9: a that's that's more about politics and it is about 473 00:24:36,960 --> 00:24:38,240 Speaker 9: UH union jobs. 474 00:24:38,280 --> 00:24:38,399 Speaker 4: You know. 475 00:24:38,560 --> 00:24:40,320 Speaker 2: To be continued on both of those, We'll let you 476 00:24:40,320 --> 00:24:42,359 Speaker 2: know when we learn more here on sound On. 477 00:24:43,520 --> 00:24:47,000 Speaker 1: You're listening to the Bloomberg Sound On podcast. Catch us 478 00:24:47,040 --> 00:24:50,199 Speaker 1: live weekdays at one Eastern on Bloomberg dot Com, the 479 00:24:50,240 --> 00:24:53,399 Speaker 1: iHeartRadio app and the Bloomberg Business app, or listening on 480 00:24:53,440 --> 00:24:55,440 Speaker 1: demand wherever you get your podcasts. 481 00:24:56,840 --> 00:24:59,480 Speaker 2: So, was Marjorie Taylor Green kicked out of the Freedom 482 00:24:59,520 --> 00:25:03,720 Speaker 2: Caucus or not? It's pretty hard to tell, even when 483 00:25:03,720 --> 00:25:07,080 Speaker 2: you're asking people in the Freedom Caucus. I'm Joe Matthew 484 00:25:07,560 --> 00:25:10,720 Speaker 2: in Washington as we reassembled the panel. Genie Shanzino and 485 00:25:10,800 --> 00:25:13,480 Speaker 2: Rick Davis are with us. The headlines make it pretty 486 00:25:13,480 --> 00:25:18,080 Speaker 2: clear Green booted from House Freedom Caucus. I see on Politico. 487 00:25:18,160 --> 00:25:20,719 Speaker 2: Breitbart has its own version of it. But we actually 488 00:25:20,720 --> 00:25:24,840 Speaker 2: spoke with a Congressman, Andy Harris, Republican from Maryland, Freedom 489 00:25:24,880 --> 00:25:28,440 Speaker 2: Caucus board member about this vote that we knew had 490 00:25:28,480 --> 00:25:30,840 Speaker 2: taken place a good two weeks ago, without it being 491 00:25:30,880 --> 00:25:32,800 Speaker 2: clear which she kicked out or not. 492 00:25:33,000 --> 00:25:35,320 Speaker 5: And I believe that the vote was taken by the 493 00:25:35,480 --> 00:25:38,080 Speaker 5: entire that there was a vote taken by the entire group, 494 00:25:38,119 --> 00:25:40,320 Speaker 5: But again we passed it on to the entire group, 495 00:25:40,320 --> 00:25:42,320 Speaker 5: and I'm pretty sure the vote was. 496 00:25:42,240 --> 00:25:43,439 Speaker 7: Taken out. 497 00:25:44,840 --> 00:25:48,000 Speaker 5: As far as I know. That's that's the way it is. 498 00:25:48,240 --> 00:25:49,080 Speaker 3: That's the way it is. 499 00:25:49,280 --> 00:25:51,679 Speaker 2: Far But then we hear she's actually not out of 500 00:25:51,680 --> 00:25:55,600 Speaker 2: the caucus. She'll still be associated somehow, and I'm confused 501 00:25:55,600 --> 00:25:59,240 Speaker 2: if it even matters. Rick Davis, I'm not sure you're 502 00:26:00,320 --> 00:26:02,880 Speaker 2: on this. This comes down to a decorum issue following 503 00:26:02,920 --> 00:26:05,400 Speaker 2: a spat she had with Lauren Bolbert on the House floor, 504 00:26:05,440 --> 00:26:08,639 Speaker 2: along with her alliance with Kevin McCarthy. And that's the 505 00:26:08,680 --> 00:26:12,840 Speaker 2: part that is I think maybe important to actual matters 506 00:26:12,840 --> 00:26:15,920 Speaker 2: of the House and policymaking. If you're aligned with this speaker, 507 00:26:16,640 --> 00:26:19,040 Speaker 2: you're on the outs with the Freedom Caucus. How sustainable 508 00:26:19,119 --> 00:26:23,000 Speaker 2: is that, you know, I don't think it's sustainable. It 509 00:26:23,160 --> 00:26:28,960 Speaker 2: was partly her negotiations to get the Speaker elected that 510 00:26:29,080 --> 00:26:32,360 Speaker 2: put a lot of the members of the Freedom Caucus 511 00:26:32,359 --> 00:26:34,320 Speaker 2: in leadership positions within. 512 00:26:35,119 --> 00:26:39,160 Speaker 9: The House of Representatives. And so when you're a caucus 513 00:26:39,200 --> 00:26:41,920 Speaker 9: of forty four people, you know, less than a tenth 514 00:26:41,920 --> 00:26:45,800 Speaker 9: of the entire House of Representatives, you really don't have 515 00:26:45,920 --> 00:26:48,080 Speaker 9: that much leverage. And I think we've seen that in 516 00:26:48,119 --> 00:26:51,359 Speaker 9: some issues recently, like the raising of the debt limit 517 00:26:51,400 --> 00:26:55,320 Speaker 9: that the Freedom Caucus vociferously opposed, even though many of 518 00:26:55,359 --> 00:26:58,560 Speaker 9: their members ultimately voted for it. So the reality is 519 00:26:58,680 --> 00:27:01,119 Speaker 9: I think this is all bar and very little bite. 520 00:27:01,119 --> 00:27:03,720 Speaker 9: I'm not sure what they can do to actually affect 521 00:27:03,720 --> 00:27:04,520 Speaker 9: things in the future. 522 00:27:04,800 --> 00:27:08,600 Speaker 2: Does it mean more difficult days ahead for Kevin McCarthy 523 00:27:09,080 --> 00:27:13,239 Speaker 2: when this is the response from his conservative. 524 00:27:12,720 --> 00:27:15,399 Speaker 3: Wing Genie, Yeah, I think so. 525 00:27:15,600 --> 00:27:18,360 Speaker 8: You know, first of all, could we just be realistic here. 526 00:27:18,400 --> 00:27:21,440 Speaker 8: We're being told that Mercury Telergreen is not radical enough 527 00:27:21,480 --> 00:27:24,280 Speaker 8: for the House Freedom Caucus. And the fight she had 528 00:27:24,320 --> 00:27:27,920 Speaker 8: with Lauren Bobert, Let's not forget, was over who could 529 00:27:28,000 --> 00:27:32,119 Speaker 8: file impeachment charges against Biden first, but that you know, 530 00:27:32,320 --> 00:27:35,439 Speaker 8: has left her not you know, conservative enough for this 531 00:27:35,480 --> 00:27:38,400 Speaker 8: House Caucus. Not to mention, we don't know if she's 532 00:27:38,480 --> 00:27:42,639 Speaker 8: actually out because we're hearing that Scott Perry can't find 533 00:27:42,680 --> 00:27:45,160 Speaker 8: her and so he can't tell her face to face 534 00:27:45,200 --> 00:27:47,880 Speaker 8: that she's out. So she's like, you know, being it's 535 00:27:47,920 --> 00:27:50,639 Speaker 8: like you're being served. Yeah, like you're being served, but 536 00:27:50,680 --> 00:27:53,000 Speaker 8: you're just gonna hide and hope it goes away. It's 537 00:27:53,160 --> 00:27:56,160 Speaker 8: it's very very strange. And I also want to say 538 00:27:56,520 --> 00:28:01,120 Speaker 8: Andy Harris's statement that she was referred because we expect 539 00:28:01,119 --> 00:28:04,560 Speaker 8: our members to your point, have better decorum, particularly, he says, 540 00:28:04,720 --> 00:28:08,280 Speaker 8: especially female members. Now I'm sorry, are we in eighteen 541 00:28:08,400 --> 00:28:13,040 Speaker 8: hundred or twenty twenty three? All of that said, Kevin McCarthy, 542 00:28:13,080 --> 00:28:15,119 Speaker 8: it can't get much harder for him. He's done a 543 00:28:15,200 --> 00:28:18,200 Speaker 8: yeoman's work under really hard circumstances. It's not going to 544 00:28:18,280 --> 00:28:21,320 Speaker 8: get easier. You know, I don't think I think the 545 00:28:21,359 --> 00:28:24,440 Speaker 8: best thing going for him. No sane person wants this job. 546 00:28:24,560 --> 00:28:27,679 Speaker 8: And so without him, who's going to lead this? You know, 547 00:28:27,880 --> 00:28:28,520 Speaker 8: this group? 548 00:28:29,040 --> 00:28:31,840 Speaker 2: Well, that was all right, that's quit to take Genie, 549 00:28:31,880 --> 00:28:34,679 Speaker 2: you know, Margie Taylor Green says the House is like 550 00:28:34,760 --> 00:28:35,280 Speaker 2: high school? 551 00:28:35,359 --> 00:28:36,080 Speaker 3: Rick, Is she right? 552 00:28:36,359 --> 00:28:36,520 Speaker 8: Oh? 553 00:28:36,600 --> 00:28:38,920 Speaker 9: Yeah, I mean, and it always has been. That's not new. 554 00:28:40,080 --> 00:28:44,680 Speaker 9: And there's a wide range of personalities in high school 555 00:28:44,680 --> 00:28:47,400 Speaker 9: and that exists also in the House of Representatives. I mean, 556 00:28:47,440 --> 00:28:50,720 Speaker 9: by design are founding fathers. You really wanted the rabble 557 00:28:50,800 --> 00:28:52,720 Speaker 9: for a place to go, and they built the House 558 00:28:52,760 --> 00:28:57,040 Speaker 9: of Representatives for them. So it's not actually an unusual thing. 559 00:28:57,640 --> 00:29:00,440 Speaker 9: But the bottom line on this is will it Will 560 00:29:00,440 --> 00:29:04,719 Speaker 9: it actually up end leadership? Will it upend Republicans agenda 561 00:29:04,720 --> 00:29:07,440 Speaker 9: in these committees? And I think all of this has 562 00:29:07,760 --> 00:29:12,320 Speaker 9: zero impact on the leadership's ability to function in the 563 00:29:12,320 --> 00:29:16,640 Speaker 9: committee business that's in front of it. So it's interesting. 564 00:29:17,360 --> 00:29:19,640 Speaker 9: And I guess if I were a betting man and 565 00:29:19,760 --> 00:29:23,040 Speaker 9: we had a contest between Marjorie Taylor Green's success in 566 00:29:23,080 --> 00:29:27,280 Speaker 9: the future and Lauren Boberts, I would say Lauren Bobert 567 00:29:27,320 --> 00:29:31,440 Speaker 9: won by five hundred and forty seven votes, and her 568 00:29:31,600 --> 00:29:35,120 Speaker 9: opponent just raised two point seven million dollars in the 569 00:29:35,160 --> 00:29:38,600 Speaker 9: second quarter, so I would short her and go long 570 00:29:38,680 --> 00:29:40,000 Speaker 9: on Marjorie Taylor Green. 571 00:29:40,600 --> 00:29:43,640 Speaker 2: All right, there's the real deal from Rick Davis. Now, 572 00:29:44,720 --> 00:29:48,000 Speaker 2: there are questions about why Speaker McCarthy has not endorsed 573 00:29:48,080 --> 00:29:51,880 Speaker 2: his friend, his political ally, Donald Trump, and this is 574 00:29:51,920 --> 00:29:56,720 Speaker 2: all somehow connected in the cosmos I suspect Genie. But 575 00:29:57,800 --> 00:30:02,440 Speaker 2: the fact is he's concerned that if dom Trump becomes 576 00:30:02,440 --> 00:30:04,640 Speaker 2: the nominee that Republicans will lose the House, and if 577 00:30:04,640 --> 00:30:07,480 Speaker 2: that happens, he loses his speakership. Is he right about 578 00:30:07,480 --> 00:30:10,800 Speaker 2: that trajectory? He loses not only the gavel, but will 579 00:30:10,800 --> 00:30:13,040 Speaker 2: not be minority leader, he will not be the Republican 580 00:30:13,120 --> 00:30:16,360 Speaker 2: leader if the party loses control in the next election. 581 00:30:16,920 --> 00:30:20,000 Speaker 8: I think it's very possible. At this point anything is possible, 582 00:30:20,040 --> 00:30:22,680 Speaker 8: but I do think he is cognizant, unlike some of 583 00:30:22,680 --> 00:30:26,120 Speaker 8: the Freedom Caucus members that they won only by a 584 00:30:26,240 --> 00:30:28,760 Speaker 8: very narrow margin because they were able to flip some 585 00:30:28,840 --> 00:30:31,240 Speaker 8: of these very purple districts like places where I live 586 00:30:31,280 --> 00:30:33,920 Speaker 8: in New York. And so if they lose that, and 587 00:30:34,120 --> 00:30:36,120 Speaker 8: I got to tell you, the Democrats are fighting hard 588 00:30:36,160 --> 00:30:38,880 Speaker 8: to ensure that's happens. That's what Donald Trump was out 589 00:30:38,880 --> 00:30:43,160 Speaker 8: there talking again about Republicans not supporting the infrastructure bill 590 00:30:43,200 --> 00:30:45,440 Speaker 8: that is helping so many of their districts, and they 591 00:30:45,480 --> 00:30:48,680 Speaker 8: will keep saying that, particularly in these purple districts, that 592 00:30:48,840 --> 00:30:50,960 Speaker 8: he has a potential not just is he going to 593 00:30:51,040 --> 00:30:53,479 Speaker 8: lose the speakership, but also to your point, if he 594 00:30:53,560 --> 00:30:55,800 Speaker 8: was the minority leader. So you know that is a 595 00:30:55,920 --> 00:30:58,800 Speaker 8: very real prospect. I also think, of course, nothing is 596 00:30:58,880 --> 00:31:01,800 Speaker 8: going to get the Democrats out voting in these districts 597 00:31:01,800 --> 00:31:05,040 Speaker 8: like a Donald Trump nominee nomination rather, and he knows that, 598 00:31:05,120 --> 00:31:07,360 Speaker 8: so he's hoping to sort of wait as long as 599 00:31:07,360 --> 00:31:09,440 Speaker 8: he can, but he's getting pressure from all sides. 600 00:31:09,520 --> 00:31:11,360 Speaker 2: So when Kevin McCarthy wakes up in the middle of 601 00:31:11,400 --> 00:31:12,800 Speaker 2: the night, he's looking at the ceiling where I can 602 00:31:12,880 --> 00:31:15,440 Speaker 2: imagines that scenario is that the way this happens, if 603 00:31:15,480 --> 00:31:18,960 Speaker 2: Donald Trump is in fact the nominee, Republicans risk losing 604 00:31:18,960 --> 00:31:21,120 Speaker 2: the House. And if that happens, he's not a leader anymore. 605 00:31:22,040 --> 00:31:25,720 Speaker 9: Yeah, I think that there's a implication obviously for the 606 00:31:25,760 --> 00:31:28,680 Speaker 9: general election, and right now from what I'm seeing on 607 00:31:29,160 --> 00:31:33,440 Speaker 9: some surveys is that the Democratic generic ballot is moving 608 00:31:33,520 --> 00:31:35,880 Speaker 9: ahead of the Republican so it could wind up being 609 00:31:36,240 --> 00:31:39,320 Speaker 9: advantaged Democrats one way or another, and that obviously is 610 00:31:39,360 --> 00:31:42,360 Speaker 9: influenced by Trump to some degree. But I think there's 611 00:31:42,360 --> 00:31:44,400 Speaker 9: a more micro reason. I mean, we were just talking 612 00:31:44,400 --> 00:31:48,000 Speaker 9: about how hard it is for Speaker McCarthy to manage 613 00:31:48,040 --> 00:31:53,000 Speaker 9: a unruly caucus and staking out a position on a 614 00:31:53,040 --> 00:31:56,560 Speaker 9: presidential campaign where you know, maybe half his caucus is 615 00:31:56,640 --> 00:32:00,960 Speaker 9: anti Trump is actually going to make his job harder, 616 00:32:01,080 --> 00:32:04,880 Speaker 9: not easier, and so he's caught in this wedge where 617 00:32:05,840 --> 00:32:08,920 Speaker 9: he'd like to make sure that the Republicans are in 618 00:32:09,000 --> 00:32:13,040 Speaker 9: power in twenty twenty four so he can continue to 619 00:32:13,080 --> 00:32:16,640 Speaker 9: be Speaker, but by weighing in on it, especially in 620 00:32:16,680 --> 00:32:20,880 Speaker 9: the primaries, he could actually pull apart his caucus today. 621 00:32:21,040 --> 00:32:24,000 Speaker 9: So once again, another reason why you don't want to 622 00:32:24,040 --> 00:32:27,080 Speaker 9: be Kevin McCarthy. 623 00:32:26,200 --> 00:32:29,960 Speaker 2: Unreal, Rick Davis, and Genie Shanzano come back for some 624 00:32:30,000 --> 00:32:32,840 Speaker 2: final thoughts here on Bloomberg sound On, I'm Joe Matthew 625 00:32:32,920 --> 00:32:37,520 Speaker 2: in Washington. Senator Marco Rubio is looking to the heavens 626 00:32:38,560 --> 00:32:43,280 Speaker 2: and he wants answers. It's coming up next. This is Bloomberg. 627 00:32:44,840 --> 00:32:48,200 Speaker 1: You're listening to the Bloomberg Sound On podcast. Catch the 628 00:32:48,240 --> 00:32:52,120 Speaker 1: program live weekdays at one Eastern on Bloomberg Radio, the 629 00:32:52,200 --> 00:32:55,520 Speaker 1: tune in alf, Bloomberg dot Com, and the Bloomberg Business app. 630 00:32:55,640 --> 00:32:58,520 Speaker 1: You can also listen live on Amazon Alexa from our 631 00:32:58,520 --> 00:33:02,600 Speaker 1: flagship New York station, Just say Alexa play Bloomberg eleven. 632 00:33:05,080 --> 00:33:11,320 Speaker 2: Senator Marco Rubio wants answers on UFOs, pledging to get 633 00:33:11,360 --> 00:33:14,480 Speaker 2: to the bottom of a whistleblower account that says the 634 00:33:14,600 --> 00:33:20,280 Speaker 2: US government is running covert programs that have acquired intact 635 00:33:20,360 --> 00:33:28,320 Speaker 2: and partially intact craft of non human origin UFOs. The whistleblower, 636 00:33:28,320 --> 00:33:32,240 Speaker 2: a former US intelligence official identified in reports as David 637 00:33:32,360 --> 00:33:36,720 Speaker 2: Charles Grush, says the classified info has been withheld from Congress, 638 00:33:36,920 --> 00:33:39,480 Speaker 2: and Senator Rubio wants answers. As I mentioned, he made 639 00:33:39,520 --> 00:33:41,560 Speaker 2: it very clear on News Nation. 640 00:33:43,040 --> 00:33:43,360 Speaker 3: Listen. 641 00:33:44,960 --> 00:33:48,520 Speaker 10: Either when he is saying is partially true or entirely true, 642 00:33:48,760 --> 00:33:53,800 Speaker 10: or we have some really smart, educated people with high 643 00:33:53,840 --> 00:33:57,560 Speaker 10: clearances and very important positions in our government who are 644 00:33:57,640 --> 00:33:59,880 Speaker 10: crazy and are leading us on a goose chase. Of 645 00:33:59,880 --> 00:34:01,800 Speaker 10: these two things is true. Either what they're telling us 646 00:34:01,880 --> 00:34:04,600 Speaker 10: is true, or we've got some people in important positions 647 00:34:05,200 --> 00:34:05,960 Speaker 10: that are doing this. 648 00:34:08,120 --> 00:34:12,239 Speaker 2: Surely our panel has thoughts, Rick Davis, is he right 649 00:34:12,360 --> 00:34:13,640 Speaker 2: this is a senator? 650 00:34:13,760 --> 00:34:15,640 Speaker 3: Us senator? Are crazy people with high. 651 00:34:15,440 --> 00:34:18,360 Speaker 2: Security clearances leading us on a goose chase? 652 00:34:19,000 --> 00:34:19,399 Speaker 9: I hope? 653 00:34:19,400 --> 00:34:19,520 Speaker 4: So. 654 00:34:20,640 --> 00:34:24,120 Speaker 9: I think this would be the most fascinating scandal of Washington. 655 00:34:24,280 --> 00:34:28,560 Speaker 9: Right that either we're being led up by a goose 656 00:34:28,640 --> 00:34:34,840 Speaker 9: chase because of some weird plan conspiracy theory that somebody 657 00:34:34,960 --> 00:34:38,399 Speaker 9: high up in the intelligence community or dood have, or 658 00:34:38,560 --> 00:34:44,160 Speaker 9: that they're actually covering up real alien activity. And either 659 00:34:44,160 --> 00:34:46,560 Speaker 9: way I'm in. This is something I want to talk 660 00:34:46,560 --> 00:34:47,719 Speaker 9: about all summer long. 661 00:34:48,280 --> 00:34:51,400 Speaker 2: Genie, is it time to form the Crop Circle Caucus? 662 00:34:52,200 --> 00:34:55,360 Speaker 8: It absolutely is. Hey, maybe the aliens put the cocaine 663 00:34:55,360 --> 00:34:57,560 Speaker 8: in the White House. That's what I'm thinking. But I'm 664 00:34:57,600 --> 00:35:00,759 Speaker 8: with Rick, this is exciting. The Senate's hearings UFOs over 665 00:35:00,760 --> 00:35:03,520 Speaker 8: the last few years ho home boring. This is gonna 666 00:35:03,520 --> 00:35:06,799 Speaker 8: spice things up. Go Marco Rubio, let's get at it 667 00:35:06,840 --> 00:35:09,520 Speaker 8: and let's hear from David Gresh and the rest did 668 00:35:09,880 --> 00:35:12,200 Speaker 8: David Grush said something about we received a tip from 669 00:35:12,200 --> 00:35:14,920 Speaker 8: the Vatican about a UFO. I want to hear more. 670 00:35:14,719 --> 00:35:18,680 Speaker 2: About that and space lasers while we're at it, We'll 671 00:35:18,719 --> 00:35:21,040 Speaker 2: see what happens with the Freedom Caucus Bitjani, Thank you 672 00:35:21,120 --> 00:35:24,920 Speaker 2: so much, Genie Shanzano and Rick Davis, Bloomberg Politics contributors. 673 00:35:24,960 --> 00:35:28,799 Speaker 2: Thanks to producer James for the Crop Circle Caucus. 674 00:35:29,520 --> 00:35:31,840 Speaker 3: We bring you the news as it happens in Washington. 675 00:35:31,880 --> 00:35:37,040 Speaker 3: That's all we can do is report. Thanks for listening 676 00:35:37,080 --> 00:35:38,280 Speaker 3: to the Sound on podcast. 677 00:35:38,360 --> 00:35:41,480 Speaker 2: Make sure to subscribe if you haven't already, at Apple, Spotify, 678 00:35:41,520 --> 00:35:43,960 Speaker 2: and anywhere else you get your podcasts. And you can 679 00:35:44,000 --> 00:35:47,000 Speaker 2: find us live every weekday from Washington, DC at one 680 00:35:47,040 --> 00:35:51,439 Speaker 2: pm Eastern Time at Bloomberg dot com