WEBVTT - US Senator Elizabeth Warren (D-MA) Talks Kevin Warsh Testimony, Iran War

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Senator, thank you so much for joining us. We do

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<v Speaker 2>want to speak with you about the nomination and confirmation

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<v Speaker 2>hearing of Kevin worsh But we have to begin with

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<v Speaker 2>Iran and what appears to be now an indefinite extension

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<v Speaker 2>of the ceasefire as well, according to President Trump, is

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<v Speaker 2>an indefinite maintenance of this US naval blockade and of

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<v Speaker 2>our military position in the Middle East. For how long

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<v Speaker 2>will even the United States Senate and Republican control deem

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<v Speaker 2>this sustainable.

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<v Speaker 1>Well, what we're really seeing here is an indefinite war,

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<v Speaker 1>a war with no obvious end. And Donald Trump has

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<v Speaker 1>demonstrated over and over and over he's got no plan,

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<v Speaker 1>he's got no exit ramp. He has signed on the

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<v Speaker 1>American people just to go indefinitely, and so far Republicans

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<v Speaker 1>in the United States Senate have voted one, two, three,

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<v Speaker 1>four times to let him just continue to roll this

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<v Speaker 1>war out.

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<v Speaker 3>Well, we're coming up on the sixty.

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<v Speaker 2>Days that the War Powers Act technically gives a president

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<v Speaker 2>to use the military in a way he deems justified.

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<v Speaker 2>If we are in an indefinite cease fire, is that

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<v Speaker 2>clock still ticking? What do you expect happens when that

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<v Speaker 2>time expired.

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<v Speaker 1>We are at war. Understand, a military blockade, which is

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<v Speaker 1>what we have, is an act of war, and that's

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<v Speaker 1>not just a matter of interpretation, that's actually recognized all

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<v Speaker 1>around the world. It's in the laws of war.

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<v Speaker 3>We are at war.

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<v Speaker 1>And the only way, evidently that we're going to be

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<v Speaker 1>able to stop this is to get the Republicans to

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<v Speaker 1>grow a backbone and be willing to exercise our constitutional

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<v Speaker 1>responsibility to pull the president back in. He does not

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<v Speaker 1>have the right, either legally or morally to go to

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<v Speaker 1>war on his own, and so far the Republicans let

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<v Speaker 1>him do this. But maybe they will hit this magic

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<v Speaker 1>sixty days and say now it is time, after thirteen

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<v Speaker 1>American service members have been killed, after about a billion

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<v Speaker 1>dollars a day has been spent, and after Donald Trump

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<v Speaker 1>has embarrassed our nation on the international stage repeatedly.

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<v Speaker 2>Does it cost a billion dollars a day to maintain

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<v Speaker 2>our position right now? Even if there's not kinetic action

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<v Speaker 2>that the Wells military is engagement.

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<v Speaker 1>You know what the first clue about how expensive it is?

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<v Speaker 1>In the herring yesterday, russ vote refused to say how

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<v Speaker 1>much it cost If it costs less than a billion

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<v Speaker 1>dollars a day, the guy who has the green eye

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<v Speaker 1>shade and the pencil and is supposed to be doing

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<v Speaker 1>the numbers, morning, noon and night would have told us.

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<v Speaker 1>But yesterday he wouldn't even give a range on what

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<v Speaker 1>it costs. So a guarantee, it's costing a lot of money.

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<v Speaker 1>And it's money we could have spent on people who

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<v Speaker 1>can't afford their healthcare. Money, we could have spent on

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<v Speaker 1>little babies who could be in childcare. Money we could

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<v Speaker 1>have spent to lower the cost of housing. It's money.

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<v Speaker 1>We could have spent to rebuild our infrastructure. It's money

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<v Speaker 1>we could have spent the lower the national bent all

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<v Speaker 1>right here at home. But Donald Trump, who promised two things,

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<v Speaker 1>one that he would not start a war somewhere else

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<v Speaker 1>in two that he would lower costs on day one,

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<v Speaker 1>has gone back on both of those promises.

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<v Speaker 3>Well.

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<v Speaker 2>The president, of course, Harold's what he describes as the

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<v Speaker 2>many wars that he has stopped and ended. So when

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<v Speaker 2>we think about the potential end to this, I know

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<v Speaker 2>you said you see the only way out of this

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<v Speaker 2>as your Republican colleagues growing a backbone, I think is

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<v Speaker 2>what you just said. But what about the potential for

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<v Speaker 2>real diplomacy to have a breakthrough. I wonder if you

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<v Speaker 2>see right now, especially with a naval blockade, as the

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<v Speaker 2>US having gained some leverage to make sure that the

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<v Speaker 2>outcome is favorable to the United States and less so.

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<v Speaker 1>For let's be clear, the real leverage that has been

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<v Speaker 1>gained here is that Donald Trump started this war when

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<v Speaker 1>the strait of horror moves was open, and so all

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<v Speaker 1>of those ships carrying oil, carrying the ingredients for fertilizer

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<v Speaker 1>and plastics, all of that was flowing, and that was

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<v Speaker 1>keeping prices at least somewhat stable around the world. Now

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<v Speaker 1>what we've got is the RUN has figured out that

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<v Speaker 1>it has the capacity to pinch off the strait of

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<v Speaker 1>hormones and inflict enormous pain on the United States and

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<v Speaker 1>on the worldwide economy. Iran right now seems to be

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<v Speaker 1>looking at what's unfolded over the last two months and

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<v Speaker 1>believes that its leverage looks stronger than ever. That's what

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<v Speaker 1>Donald Trump has accomplished here. He has spent American lives,

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<v Speaker 1>he has spent American treasure, and he has spent America's reputation,

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<v Speaker 1>and no one can give any indication how the good

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<v Speaker 1>folks of the United States of America are any better off.

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<v Speaker 2>Well, as you talk about the economic damage done by

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<v Speaker 2>the closure of the straight Over News, that is obviously

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<v Speaker 2>a challenge that the next FED chair, assuming one can

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<v Speaker 2>be confirmed, will be inheriting as we consider a supply

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<v Speaker 2>shock in the potential inflationary impacts. Obviously, President Trump wants

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<v Speaker 2>to see easier policy, and you pointed to that. In

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<v Speaker 2>the confirmation hearing for Kevin worsh today, he says that

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<v Speaker 2>he will maintain independence, that he did not commit to

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<v Speaker 2>the President to lower interest rates, that the President didn't

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<v Speaker 2>ask him to do so. And I wonder, knowing you

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<v Speaker 2>have concerns about Kevin Walsh, if your concerns are really

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<v Speaker 2>so much about the nominee as the person who nominated

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<v Speaker 2>him President Trump.

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<v Speaker 1>Obviously, before we have not had to worry about the

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<v Speaker 1>independence of the FED. That just hasn't been a serious

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<v Speaker 1>issue because presidents Democrats and republic ones have mostly respected

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<v Speaker 1>the independence of the FED. And let me just make

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<v Speaker 1>a little side point here about why independence of the

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<v Speaker 1>FED is so important. There are two ways to make

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<v Speaker 1>economic decisions. One of them is just based on your

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<v Speaker 1>best assessment of the numbers. Where we are on inflation,

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<v Speaker 1>where we are on unemployment, what kind of other things

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<v Speaker 1>are going on around the world, And that's what the

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<v Speaker 1>FED is supposed to do.

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<v Speaker 3>The second way to do it.

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<v Speaker 1>Is based on politics. We're six months out from an election.

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<v Speaker 1>The economy is in real trouble. Prices are up, of

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<v Speaker 1>families are really feeling the squeeze and very very concerned

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<v Speaker 1>about high prices. It's possible for political reasons to make

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<v Speaker 1>decisions about monetary policy to goose that economy running running

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<v Speaker 1>into the election. And the problem is that in the

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<v Speaker 1>long run that's terrible for the economy. It can, for example,

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<v Speaker 1>drive up inflation even higher so that families are paying

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<v Speaker 1>more and more and more for mortgages and for credit cards,

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<v Speaker 1>and for Carlins. What I want to see, what Democrats

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<v Speaker 1>want to see as an independent FEB that's still making

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<v Speaker 1>decisions based on the numbers. What Donald Trump has said

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<v Speaker 1>quite openly is he wants to make the political decisions

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<v Speaker 1>that aren't good for the American economy but are good

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<v Speaker 1>for Donald Trump. Today's hearing was all about that issue,

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<v Speaker 1>and Kevin worsh had one job to prove, and that

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<v Speaker 1>is even though Donald Trump, who nominated him, wants to

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<v Speaker 1>control him, it's Kevin Worsh's job to show that he

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<v Speaker 1>has the courage and the independence to stand up and

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<v Speaker 1>say no to Donald Trump. So many questions aimed in

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<v Speaker 1>that direction. He told me at a private meeting he

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<v Speaker 1>would be a tough guy. So I said, prove it

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<v Speaker 1>out here in public. Did Donald Trump lose the twenty

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<v Speaker 1>twenty election.

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<v Speaker 3>He would not answer that, would not.

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<v Speaker 1>Answer that question, and he would not answer any question

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<v Speaker 1>that might in the tiniest, little, smallest way disagree with

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<v Speaker 1>Donald Trump. He proved to all who were watching that

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<v Speaker 1>Kevin Worsh will be a great sock puppet for Donald Trump.

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<v Speaker 2>He of course says he won't. He also, course, he

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<v Speaker 2>does answer your question regarding the divestiture of his ample assets.

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<v Speaker 3>Shall we say?

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<v Speaker 2>We have seen wealthy people take jobs in public service

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<v Speaker 2>have to disclose and divest assets before. So what specifically

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<v Speaker 2>is it that Kevin Worsh holds that you're so worried about.

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<v Speaker 3>Oh, that's the whole problem.

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<v Speaker 1>Literally, no other nominee and the Trump administration has refused

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<v Speaker 1>to disclose their assets. And believe me, There've been some

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<v Speaker 1>pretty hairy assets that have been disclosed. But Kevin Moorsh

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<v Speaker 1>says out of his two hundred and fifty million dollars

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<v Speaker 1>of the assets, million is just he is not gonna

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<v Speaker 1>tell us, not gonna tell us what's there. I asked

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<v Speaker 1>him today, I said, well, can you at least tell

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<v Speaker 1>us that you're not invested in Chinese own businesses, You're

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<v Speaker 1>not invested in money laundering companies, You're not invested in

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<v Speaker 1>the vehicles that Jeffrey Epstein was using to launder money.

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<v Speaker 1>Can you at least tell us that much? And he said, Nope,

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<v Speaker 1>not telling anything. And this will be if he goes

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<v Speaker 1>through like this, Literally the first person who's come through

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<v Speaker 1>the Banking Committee for which the Office of Ethics says

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<v Speaker 1>he is out of compliance. He is not in compliance.

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<v Speaker 2>I'd also like to ask you about someone who will

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<v Speaker 2>be coming before the Banking Committee, as the White House

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<v Speaker 2>just sent over to the United States Senates today that

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<v Speaker 2>the nomination for the next Chair of the Council of

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<v Speaker 2>Economic Advisors, Christopher Falen. Do you know enough about him

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<v Speaker 2>at this point to say whether or not you're likely

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<v Speaker 2>to support.

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<v Speaker 1>Not yet, but what I'd like to start out with

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<v Speaker 1>is full disclosure of all assets. You know, I really

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<v Speaker 1>wouldn't say on this. The things we never thought we'd

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<v Speaker 1>have to fight about are things that Donald Trump now

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<v Speaker 1>puts into question. I never thought we'd have to be

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<v Speaker 1>fighting over whether or not the FED chair is supposed

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<v Speaker 1>to be independent. But Donald Trump says, nobody is going

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<v Speaker 1>to be FED chair who's not going to be his

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<v Speaker 1>sock puppet. Indeed, Donald Trump said directly, we've got the

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<v Speaker 1>quotes that he had asked Kevin Walsh whether or not

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<v Speaker 1>worsh would lower interest rates. Totally inappropriate, but they had

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<v Speaker 1>done it. Kevin Warsh got up there today under oath

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<v Speaker 1>and said, Trump didn't ask me. That somebody's not telling

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<v Speaker 1>the truth here. And so now we are in a

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<v Speaker 1>world where Donald Trump wants these Republicans to push this

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<v Speaker 1>guy on through at the very moment that Donald Trump

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<v Speaker 1>is trying to take over the FED, and we've got

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<v Speaker 1>a nominee here who somebody's not telling the truth, either

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<v Speaker 1>Donald Trump or his nominee.

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<v Speaker 2>Just quickly on the idea of independence of monetary policy

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<v Speaker 2>decision making. It is not the FED chair's decision alone.

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<v Speaker 2>He is a member of the Federal Open Market committee.

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<v Speaker 2>Do you not trust the other members of that committee

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<v Speaker 2>to be able to act as a check on the chair.

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<v Speaker 1>So I want to do this both ways. It matters

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<v Speaker 1>independence for every one of the FED governors. Look, remember

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<v Speaker 1>Donald Trump hasn't just gone after drum Powell the chair.

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<v Speaker 3>He's gone after Lisa Cook or writing well Preme Court decision.

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<v Speaker 1>That's exactly right. So it is important that every one

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<v Speaker 1>of the governors be independent. The FED chair carries extra

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<v Speaker 1>weight and therefore should be extra independent or more jealously

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<v Speaker 1>guard the independence of the FED. My big concern is

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<v Speaker 1>that Donald Trump has made clear all along he not

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<v Speaker 1>only wants to control, he's willing to use some pretty

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<v Speaker 1>powerful tools a criminal investigation of the sitting FED Chair,

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<v Speaker 1>because he claims that there's been criminal mischief in the

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<v Speaker 1>renovations of the Fed's building. I want to point out

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<v Speaker 1>also in today's hearing that it was a Republican Tom Tillis,

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<v Speaker 1>that's right, who said there is no criminal activity here.

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<v Speaker 1>But he didn't say the other half of that sentence,

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<v Speaker 1>and that is that any effort to go after the

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<v Speaker 1>Federal Chair on this bogus criminal charge is nothing more

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<v Speaker 1>than Donald Trump weaponizing every tool of government to dominate

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<v Speaker 1>and control the FED, and that should be alarming to

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<v Speaker 1>everybody in this country.

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<v Speaker 2>Senator, thank you so much for joining us.