WEBVTT - Trump Should Apologize for Charlottesville Comments, Former GM CEO Says 0:00:09.720 --> 0:00:12.880 Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keene with 0:00:13.600 --> 0:00:16.520 David Gura. Daily we bring you insight from the best 0:00:16.560 --> 0:00:22.279 of economics, finance, investment, and international relations. Find Bloomberg Surveillance 0:00:22.320 --> 0:00:27.000 on Apple Podcasts, SoundCloud, Bloomberg dot Com, and of course, 0:00:27.320 --> 0:00:33.600 on the Bloomberg Born On a Monday, the twenty one 0:00:33.680 --> 0:00:36.199 of August. This is Bloomberg Surveillance on Bloomberg Radio. I'm 0:00:36.240 --> 0:00:38.800 David Gura in New York. Francine Lackway is in London. 0:00:38.840 --> 0:00:41.280 Tom Keene is off this week, and I love this 0:00:41.320 --> 0:00:43.559 story that fran and Scarlett food Wolf last week that 0:00:43.880 --> 0:00:45.800 I heard about second hand. Tom and I were taking 0:00:45.840 --> 0:00:49.080 time off to climb Mount Everest, I gather well with 0:00:49.200 --> 0:00:51.360 the summit insight. One of us had to turn back 0:00:51.360 --> 0:00:53.440 to host the show, and here I am. Our first 0:00:53.440 --> 0:00:55.560 guest is Nathan Sheets. He joins us in our Bloomberg 0:00:55.560 --> 0:00:57.720 eleven three studios. He's the chief economist at pe JIM 0:00:57.720 --> 0:00:59.920 Fixed Income. Of course, former Under Secretary of the Trade 0:01:00.080 --> 0:01:02.400 for International Affairs. Join me and Francy on TV now 0:01:02.480 --> 0:01:04.839 here on radio as well. Great to have you with us, Nathan, 0:01:05.360 --> 0:01:08.040 and let me start by looking forward to the meetings 0:01:08.080 --> 0:01:10.640 in Jackson Hole. A little bit later this week, we 0:01:10.680 --> 0:01:13.720 talked about this someone on television, What are you listening for? What? What? 0:01:13.720 --> 0:01:16.080 What normally transpires at Jackson Hole? As much as you 0:01:16.080 --> 0:01:18.839 can say what normally transpires it at this annual event, 0:01:18.880 --> 0:01:21.000 what are you gonna be listening for? So, I think 0:01:21.040 --> 0:01:25.120 the UH the key in these meetings is what we 0:01:25.240 --> 0:01:31.240 hear about the inflation process. UH. Central banks are very 0:01:31.319 --> 0:01:36.720 focused on why, on the one hand, the global economy 0:01:36.800 --> 0:01:40.200 is performing well, but on the other hand, why inflation 0:01:40.640 --> 0:01:43.800 is as low as it is. And I think that 0:01:43.840 --> 0:01:47.520 there will be a lot of a lot of reflections 0:01:47.600 --> 0:01:52.480 and thinking about whether the inflation process has changed in 0:01:52.600 --> 0:01:57.320 some significant way, for example, as a result of shifting 0:01:57.920 --> 0:02:03.360 demographics or deep change UH in the economy. We heard 0:02:03.360 --> 0:02:06.520 her make the case UH now a few months back 0:02:06.640 --> 0:02:10.480 that the inflationary headwines we're seeing her transitory UH. She 0:02:10.520 --> 0:02:12.600 has since walked that back a little bit. But how 0:02:12.639 --> 0:02:13.919 much of the conversation do you think it's going to 0:02:14.040 --> 0:02:17.280 center on that the temporariness of what we're seeing. So, 0:02:17.320 --> 0:02:20.200 I would say, particularly in the United States, that is 0:02:20.960 --> 0:02:26.040 a key question. There are some temporary factors that have 0:02:26.160 --> 0:02:33.400 influenced UH, consumer prices of late UH medical costs of 0:02:34.000 --> 0:02:39.120 influenced the CPI, UH cell phone plans, and so forth. 0:02:39.400 --> 0:02:43.600 But it does feel more and more like that's only 0:02:43.639 --> 0:02:46.440 part of the story. And the fact that this soft 0:02:46.560 --> 0:02:52.240 inflation performance is is echoed and many other of the 0:02:52.280 --> 0:02:57.080 advanced economies UH in recent months suggests that maybe there's 0:02:57.120 --> 0:03:01.720 something deeper, deeper at play, what Nathan, And if it 0:03:01.880 --> 0:03:04.280 is something deeper, do we need to try and fix 0:03:04.360 --> 0:03:05.760 that at the root of the cause, or do we 0:03:05.840 --> 0:03:08.360 just need to look at a different set of numbers. 0:03:08.760 --> 0:03:12.480 So I think for UH, for central banks, the question 0:03:12.520 --> 0:03:16.919 of what is driving this is a very deep one UH. 0:03:17.960 --> 0:03:21.080 I think part of it may have to do with 0:03:21.400 --> 0:03:24.640 UH the fact that inflation has been very low for 0:03:24.680 --> 0:03:31.000 a long time. At Once inflation expectations are anchored, it 0:03:31.040 --> 0:03:35.680 becomes very difficult to to raise them. I think that 0:03:35.960 --> 0:03:41.160 the experience in Japan UH in in in recent years 0:03:41.280 --> 0:03:45.680 very much highlights highlights that challenge UH. So this is 0:03:45.840 --> 0:03:50.240 this is a very tough set of issues. Is it 0:03:50.360 --> 0:03:55.160 just temporary UH? Is there something deeper at play? And 0:03:55.280 --> 0:04:00.080 ultimately the issue of what what drives inflation expectations for consumer? 0:04:00.480 --> 0:04:03.600 Nathan were you surprised? So the both the European Central 0:04:03.640 --> 0:04:05.720 Bank and the Fed kept on saying that actually, inflation 0:04:05.760 --> 0:04:08.920 will be fine in a couple of quarters once you 0:04:08.960 --> 0:04:12.000 know the market, the labor market start stabilizing and that 0:04:12.000 --> 0:04:13.920 will feed into wage growth. And they've kind of had 0:04:13.960 --> 0:04:17.000 to reassess that and go with what the market was expecting. 0:04:17.520 --> 0:04:22.000 Does that mean they lose credibility? So? Uh, The baseline 0:04:22.080 --> 0:04:29.279 macroeconomic models UH focus on the relationship between slack in 0:04:29.279 --> 0:04:33.680 the labor market, the unemployment rate UH, and inflation. And 0:04:33.760 --> 0:04:37.760 I really think that even in this very tough situation 0:04:38.279 --> 0:04:41.919 and circumstances that central banks are in, that that relationship 0:04:42.240 --> 0:04:45.080 is the best that the central banks have to go on. 0:04:45.520 --> 0:04:51.520 But as you suggest, their confidence in that model is 0:04:51.520 --> 0:04:55.760 is uh not as great as as it has been 0:04:55.760 --> 0:04:59.760 in the past. And so I think they're having to, uh, 0:04:59.800 --> 0:05:03.120 in some sense drive by looking through the rear view 0:05:03.160 --> 0:05:07.599 mirror and look at where the economy has been and 0:05:07.640 --> 0:05:10.599 where it is and where it has been and is 0:05:10.600 --> 0:05:16.520 is a place where inflation remains very very low. Maybe 0:05:16.600 --> 0:05:18.800 we had this ECB form a few weeks back in 0:05:19.160 --> 0:05:22.560 Portugal and and there was news there about a new 0:05:22.560 --> 0:05:25.479 effort of coordination among central banks. Do you expect that 0:05:25.560 --> 0:05:28.160 conversation to to continue that that form ended up making 0:05:28.200 --> 0:05:29.400 a lot more news, I think than a lot of 0:05:29.400 --> 0:05:32.640 people expected, in part because there was some marketing misinterpretation 0:05:32.640 --> 0:05:36.000 of what Mario Dragging and others had to had to say. 0:05:36.200 --> 0:05:38.440 Did you expect there to be continuity between that conference 0:05:38.440 --> 0:05:42.039 in this one? So I would say the issue of 0:05:42.200 --> 0:05:48.240 central bank cooperation is one that is sometimes I think misunderstood. 0:05:49.360 --> 0:05:53.719 The FED, UH, the CB, the Bank of England primarily 0:05:53.880 --> 0:05:57.760 have domestic man dates for price stability and for the 0:05:57.760 --> 0:06:02.360 FED in addition UH full employment, So when they're talking 0:06:02.400 --> 0:06:09.159 about cooperation, it is primarily an exercise in information sharing, 0:06:09.440 --> 0:06:15.479 in relationship building, and only in very rare instances is 0:06:15.520 --> 0:06:20.400 that the formal coordination of policy. Now, of course we're 0:06:20.440 --> 0:06:24.320 in a global economy and central banks have to pay 0:06:24.360 --> 0:06:27.880 attention to what other central banks are doing because there 0:06:27.920 --> 0:06:33.279 are meaningful there are meaningful spillover effects. But I wouldn't 0:06:33.320 --> 0:06:36.479 expect there to be much talk in Jackson Hole of 0:06:36.560 --> 0:06:41.240 a formal coordination, but a lot of of of times 0:06:41.279 --> 0:06:46.360 bank comparing notes and better understanding what other central banks 0:06:46.360 --> 0:06:50.600 are thinking and how they're assessing the developments in their economy. 0:06:50.760 --> 0:06:54.000 We're at this point in the conversation about central banking 0:06:54.000 --> 0:06:55.719 where you pull up a speech and you do control 0:06:55.800 --> 0:06:57.440 left and you try to find all the instances of 0:06:57.480 --> 0:07:01.880 the word taper or or derivations thereof. Is Marito drag 0:07:02.160 --> 0:07:04.640 under pressure to to say more about the tapering process 0:07:04.640 --> 0:07:10.400 at this point. I think that that Mario Draggy will 0:07:10.440 --> 0:07:15.920 be moving in a very uh, deliberate way on his 0:07:16.040 --> 0:07:20.640 communications strategy. And I think these reports we've heard of 0:07:20.680 --> 0:07:23.760 the last week or so that he's likely to focus 0:07:23.920 --> 0:07:29.560 on international economic issues and less on tapering and the 0:07:29.600 --> 0:07:33.200 trajectory of monetary policy in the year area are are credible. 0:07:33.440 --> 0:07:36.320 So I think it will be a very interesting presentation, 0:07:36.680 --> 0:07:40.920 but may be somewhat more of an academic intellectual exercise 0:07:40.960 --> 0:07:43.680 than a blueprint for where the ECB will be headed. 0:07:44.040 --> 0:07:47.160 Where's what should the ECB worry about their Italian elections? 0:07:47.240 --> 0:07:49.360 Unclear which way they would go if they were to 0:07:49.360 --> 0:07:52.040 be held now, and they have to be held before 0:07:52.120 --> 0:07:57.840 March of next year. Yeah, there are significant political risks 0:07:58.440 --> 0:08:02.120 uh for the CB to be factoring in, and I 0:08:02.160 --> 0:08:06.520 think that very much forms a backdrop for them. I 0:08:06.520 --> 0:08:10.560 would say an imminent concern for them is as they 0:08:10.600 --> 0:08:16.080 start thinking about reducing the size of their purchases, what 0:08:16.240 --> 0:08:20.320 does that mean for bond markets in Europe? And particularly 0:08:20.880 --> 0:08:25.600 does tapering pose any risks for bond markets in Italy 0:08:25.760 --> 0:08:31.120 and Portugal where UH the ECB has been a significant 0:08:31.680 --> 0:08:35.840 a significant borrower. I think there is an underlying story 0:08:35.960 --> 0:08:40.320 in these countries of recovery and stronger economic performance. But 0:08:40.400 --> 0:08:44.119 even so, having the e c B reduced the purchases 0:08:44.160 --> 0:08:48.800 and ultimately exit could have implications for demanding yields in 0:08:48.840 --> 0:08:52.280 those economies. Nathan in twenty seconds, should they worry about 0:08:52.320 --> 0:08:55.240 the level of the euros and getting too high? The 0:08:55.360 --> 0:09:01.360 e c B UH watches the euro close a UH, 0:09:01.400 --> 0:09:05.120 and levels UH such as what we have today in 0:09:05.160 --> 0:09:07.920 the past have drawn comment from the e c B. 0:09:08.520 --> 0:09:11.800 On the other hand, the euroeconomy is performing very well 0:09:12.160 --> 0:09:16.240 and a stronger European economy is able to absorb a 0:09:16.320 --> 0:09:19.400 stronger currency and UH and continue to grow at an 0:09:19.400 --> 0:09:21.920 acceptable pace. So there's a balance there, but the e 0:09:22.000 --> 0:09:25.079 c B will be paying attention to it closely, all right, Nathan, 0:09:25.120 --> 0:09:27.800 Thank you so much. Nathan Sheets there PGIM Chief Economists 0:09:27.800 --> 0:09:30.440 stays with us at your region bunds today gaining with 0:09:30.520 --> 0:09:34.360 treasuries while the dollar is steady after the drop we 0:09:34.400 --> 0:09:36.560 saw on Friday. Of course, it's all about to the 0:09:36.600 --> 0:09:40.120 central bankers meeting at Jackson Hole. As Nathan was saying, 0:09:40.160 --> 0:09:43.600 it's about growing and knees about persistent low inflation that 0:09:43.679 --> 0:09:45.840 we'll be watching out for and what they can do 0:09:45.880 --> 0:09:49.080 about it. This is Bloomberg here with Nathan Sheets of 0:09:49.080 --> 0:09:51.600 p Jim formerly the Treasury Department or Bloomberg eleven three 0:09:51.600 --> 0:09:54.559 oh studios, having a conversation about monetary policy. Maybe we'll 0:09:54.559 --> 0:09:57.640 talk a little about fiscal policy as well. Help us 0:09:57.679 --> 0:10:01.000 understand the degree to which personnel matters that at this point, Nathan, 0:10:01.040 --> 0:10:03.880 there's a new survey of economists sound indicating that a 0:10:03.920 --> 0:10:05.439 lot of them, the majority of them, think that Gary 0:10:05.480 --> 0:10:07.520 Cone is going to be the next uh FED share 0:10:07.559 --> 0:10:09.880 you look at what this president, this administration is going 0:10:09.920 --> 0:10:12.040 to be able to do with regard to appointments, and 0:10:12.640 --> 0:10:15.880 uh he the president could radically change the configuration of 0:10:15.920 --> 0:10:18.000 the FED. What's your sense of how that's going to 0:10:18.120 --> 0:10:21.880 change policy going forward? So on the one hand, by 0:10:21.960 --> 0:10:29.160 sense is that, uh, personnelity is crucially important and who 0:10:29.400 --> 0:10:35.680 is who is leading the Federal Reserve is is very significant, 0:10:35.840 --> 0:10:41.520 and issues about their background and how they view the 0:10:41.559 --> 0:10:46.960 world and how how flexible they may be in implementing 0:10:47.000 --> 0:10:52.720 monetary policy versus how rules based they may be could 0:10:52.800 --> 0:10:57.720 have a very different implications for where US um monetary 0:10:57.800 --> 0:11:01.520 policy is headed. But it's also the case that there 0:11:01.720 --> 0:11:08.240 is a fair amount of of inertia inside of the 0:11:08.240 --> 0:11:12.280 Federal Reserve, and part of that reflects the fact that 0:11:12.360 --> 0:11:16.320 you have reserve bank presidents who have long tenures and 0:11:16.360 --> 0:11:20.720 they have significant impact on the trajectory of policy, and 0:11:20.800 --> 0:11:26.640 the Federal Reserve staff is is very influential in framing 0:11:26.679 --> 0:11:31.400 the policy decisions. So I do expect that the changes 0:11:32.120 --> 0:11:34.880 in personnel that are likely over the next year or 0:11:34.960 --> 0:11:38.360 two at the FED are likely to change the tone 0:11:38.679 --> 0:11:43.119 of of FED communication and to some extent, the trajectory 0:11:43.120 --> 0:11:46.920 of policy, but it won't be an abrupt shift or 0:11:46.920 --> 0:11:52.080 an abrupt discontinuity in in FED policy. With some regularity, 0:11:52.120 --> 0:11:54.800 we hear the clarion call from the Treasury Department about 0:11:54.800 --> 0:11:57.000 the dead ceiling, raising the dead ceiling. We're hearing it 0:11:57.040 --> 0:12:00.560 again from from this new Treasury Secretary. Steve Lution would 0:12:00.559 --> 0:12:02.319 like to see that done cleanly, he'd like to see 0:12:02.360 --> 0:12:05.320 it done on time. He's already begun to use so 0:12:05.360 --> 0:12:07.880 called extraordinary measures to make sure the government can continue 0:12:07.880 --> 0:12:10.160 to pay the bills that that come. How much has 0:12:10.200 --> 0:12:13.640 this conversation changed. How worried are you about the government 0:12:13.720 --> 0:12:16.200 raising the debt ceiling here on the heels of an 0:12:16.200 --> 0:12:20.200 August congressional recess. As a as a macro economist, they 0:12:20.200 --> 0:12:24.720 would say, one of the very important third rails UH 0:12:24.960 --> 0:12:31.280 for US policy is taking steps to continue to foster 0:12:31.600 --> 0:12:35.760 confidence in the US government and our ability to make 0:12:35.840 --> 0:12:40.360 good on our obligations. As a as an economist, I 0:12:40.559 --> 0:12:47.480 see UH significant downside and essentially no upside to pushing 0:12:47.800 --> 0:12:51.880 the issue of of of of funding the government and 0:12:51.960 --> 0:12:55.240 the debt ceiling to the very to the very brink. 0:12:55.640 --> 0:12:59.760 It's uh, it's UH. It's important that we get this 0:13:00.320 --> 0:13:04.560 issue resolved, and we get it resolved constructively. Now that's said, 0:13:04.679 --> 0:13:11.079 I do worry that the political dynamics afoot are likely 0:13:11.480 --> 0:13:17.040 to make this UH more challenging rather than less challenging. UH. 0:13:17.200 --> 0:13:21.400 With in the past, the Democrats owned the government, the 0:13:21.440 --> 0:13:26.040 Republicans were the challengers in the opposition, but it's not 0:13:26.240 --> 0:13:32.440 clear who owns UH. Continuing the government's operations in the 0:13:32.520 --> 0:13:36.880 current in the current configuration, and I think that creates 0:13:37.120 --> 0:13:41.760 uh some potential UH stresses and challenges and getting this 0:13:41.920 --> 0:13:45.400 issue resolved over the next several weeks. Nathan, whose job 0:13:45.480 --> 0:13:47.960 is it to to make it workable? I don't know. 0:13:48.120 --> 0:13:52.319 Is it the president's? Is it the chiefest off? I 0:13:52.360 --> 0:13:57.160 think ultimately, UH, it is responsibility of the President of 0:13:57.160 --> 0:14:01.120 the United States, along with the Speaker of the House 0:14:01.360 --> 0:14:06.000 and the majority leader in the Senate, to engineer an 0:14:06.040 --> 0:14:12.880 approach that UH manages a solution to this problem. UH. 0:14:12.920 --> 0:14:16.679 That they are the leadership, they are the political leadership, 0:14:17.120 --> 0:14:19.800 and this is a political problem, and it's one that 0:14:20.120 --> 0:14:24.200 there's no really there's no option other than to find 0:14:24.200 --> 0:14:27.160 a solution. Right, But how does he do that? How 0:14:27.280 --> 0:14:30.400 much political capital has he lost so far with Republicans? 0:14:30.400 --> 0:14:34.680 And how does he regain the trust? I think that 0:14:34.680 --> 0:14:41.720 that the congressional Republicans. Uh, there is within the Republican 0:14:41.840 --> 0:14:44.720 caucuses in the Senate, in the House, there are a 0:14:44.840 --> 0:14:50.080 lot of centrifugal forces, UH, a lot of differing views 0:14:50.480 --> 0:14:54.000 and UH, it's it's it's going to be a challenge, UH. 0:14:54.000 --> 0:14:57.000 And it's not clear how we get from where we 0:14:57.040 --> 0:15:01.360 are today, uh to a place where uh the leadership 0:15:01.440 --> 0:15:04.200 that I described, the President, the Speaker, and the Majority 0:15:04.280 --> 0:15:10.080 leader are able to leverage the Republican caucus and uh 0:15:10.240 --> 0:15:14.760 for for for Dad's ceiling, they also need some Democratic votes. 0:15:14.840 --> 0:15:17.240 That's going to require sixty votes in the Senate. Nathan 0:15:17.280 --> 0:15:19.360 Sheets for generous with your time this morning doing TV 0:15:19.520 --> 0:15:22.280 and radio with us. This is Bloomberg Surveillance on bloom Burgrinder. 0:15:22.360 --> 0:15:24.320 Nathan Sheets of p Jim joining us on our Bloomberg 0:15:24.320 --> 0:15:26.520 eleven three oh studios in New York. More to come. 0:15:26.880 --> 0:15:42.280 This is Bloomberg David Gurreat and Francine Lappa Francine in London. 0:15:42.320 --> 0:15:45.360 Tom Keane off this week. This is Bloombick Surveillance. Continuing 0:15:45.360 --> 0:15:48.520 our conversation about Washington now with Brad Blakman. He was 0:15:48.640 --> 0:15:51.200 member of President George W. Bush's senior staff. He joins 0:15:51.240 --> 0:15:53.120 us now from our bureau Oor Bloomberg ninty nine one 0:15:53.160 --> 0:15:55.760 Studios in Washington, d C. Great to have you with this, 0:15:56.120 --> 0:15:58.320 Mr Blackman, and let me begin just by asking you 0:15:58.920 --> 0:16:02.000 about the role of the chief of staff in the 0:16:02.000 --> 0:16:04.160 White House. So much of of our attention has been 0:16:04.160 --> 0:16:06.440 on John Kelly and the degree to which he's changed 0:16:06.480 --> 0:16:08.120 the way things are run at the White House over 0:16:08.160 --> 0:16:11.120 these last couple of weeks in a vacuum. What what's 0:16:11.160 --> 0:16:13.240 the role of of a chief of staff? Well, the 0:16:13.280 --> 0:16:15.560 chief of staff is the gatekeeper to the president. He 0:16:15.600 --> 0:16:19.840 controls the president schedule and access and direction. Um. That 0:16:20.000 --> 0:16:21.880 is really the coin of the realm of a president 0:16:22.040 --> 0:16:25.360 is his time is a finite amount of time the 0:16:25.400 --> 0:16:29.080 president has. It has to be spent well, and there 0:16:29.080 --> 0:16:32.560 has to be a direction in in where the administration 0:16:32.640 --> 0:16:35.960 is going in legislation and policy and regulation. So that 0:16:36.120 --> 0:16:39.200 is the role of the of the manager, if you will, 0:16:39.680 --> 0:16:41.800 is a chief of staff who's able to manage the 0:16:41.880 --> 0:16:44.760 staff but also manage the care and feeding of the 0:16:44.800 --> 0:16:49.120 president as well as his official duties as president. And 0:16:49.200 --> 0:16:52.000 how much of his or her responsibilities include dealing with 0:16:52.120 --> 0:16:54.040 with the Congress. I know a lot has been made here. 0:16:54.080 --> 0:16:56.600 The fact that you look at John Kelly and and 0:16:56.600 --> 0:16:59.040 in his tremendous amount of military service, I gotta some 0:16:59.080 --> 0:17:01.480 of that we spent as a liaison tip to capital. 0:17:01.640 --> 0:17:04.359 How important is that relationship between the chief of staff 0:17:04.480 --> 0:17:08.000 and the legislative branch. It's important, but it's it's not 0:17:08.080 --> 0:17:12.000 a day to day UH concern. That's why an effective 0:17:12.040 --> 0:17:14.560 team has to be built around an effective manager or 0:17:14.640 --> 0:17:17.520 chief of staff. He needs now a good political person, 0:17:17.960 --> 0:17:20.359 a good legislative person to work the day to day 0:17:20.880 --> 0:17:24.720 UH issues of the hill, a communications person, and policy. 0:17:24.760 --> 0:17:29.359 That team of management, policy, communications, legislation, and political is 0:17:29.400 --> 0:17:33.639 really the benchmark of where this president is going to 0:17:33.720 --> 0:17:35.600 go because he needs a good team to rely on 0:17:35.920 --> 0:17:39.600 in order to carry out his instructions. Mr Blakeman, how 0:17:39.640 --> 0:17:43.320 would you advise the president today after the week he's had. Well, 0:17:43.400 --> 0:17:47.560 he has a great opportunity tomorrow in Phoenix, He's going 0:17:47.600 --> 0:17:49.480 to be giving a rally, and I think he needs 0:17:49.480 --> 0:17:54.080 to set the tone now as president to unite the country, um, 0:17:54.119 --> 0:17:56.800 from every part of the country, every person in the country, 0:17:56.840 --> 0:17:59.680 whether you're a publican Democrat, whoever you are, wherever you are, 0:18:00.359 --> 0:18:03.520 we're all Americans, and the problems that face us are 0:18:03.560 --> 0:18:08.040 not um are not just problems of one person or 0:18:08.040 --> 0:18:11.359 one group. UH. Here. We have to get the economy moving. 0:18:11.760 --> 0:18:16.760 We need trade, we need infrastructure, we need healthcare. The 0:18:16.800 --> 0:18:20.440 big ticket items that the President promised must be kept now. 0:18:20.720 --> 0:18:23.120 And it wasn't only promises the President made. These were 0:18:23.160 --> 0:18:26.520 promises the Republicans. Everyone who stood for office in two 0:18:26.520 --> 0:18:30.480 thousands sixteen made the promises to make America great again. Well, 0:18:30.560 --> 0:18:33.920 that comes with policy, and right now, Uh, there's a 0:18:34.000 --> 0:18:36.960 legislative agenda coming up in the fall that must be 0:18:37.320 --> 0:18:41.080 dealt with. They must be dealt with affirmatively. And uh, 0:18:41.359 --> 0:18:43.680 failure is not an option. Right, But how would you 0:18:43.680 --> 0:18:47.320 advise Republicans that maybe took offense or absolutely did not 0:18:47.359 --> 0:18:50.959 agree on how the President handled Charlottesville. Well, you know, 0:18:51.880 --> 0:18:55.160 the president again has an opportunity in Phoenix to set 0:18:55.320 --> 0:19:00.200 set a tone. The president's written statements on Charlottesville. We're line. 0:19:00.200 --> 0:19:04.760 It's when he went off script and Tuesday and uh, 0:19:04.880 --> 0:19:10.439 and and damage those written statements that were that we're fine. Um. 0:19:10.480 --> 0:19:15.480 And but Republicans have to understand we have global issues, 0:19:15.520 --> 0:19:20.640 we have national issues, heavy issues that need to be solved, 0:19:20.760 --> 0:19:23.679 and we only have one president. He's our president for 0:19:23.720 --> 0:19:26.600 at least four eight years, and and we have to 0:19:26.600 --> 0:19:29.600 make sure that he's successful. Brown, I'm looking at a 0:19:29.600 --> 0:19:31.440 copy of The New York Times, a piece in thereby 0:19:31.560 --> 0:19:34.760 Jeremy Peters and Maggie Haberman looking at the role of 0:19:34.800 --> 0:19:37.399 Steve Bannon in this administration before he left, and the 0:19:37.440 --> 0:19:39.520 way things will change now, And a line sticks out 0:19:39.560 --> 0:19:42.280 to me the right. Bannon's exit will clarify that only 0:19:42.320 --> 0:19:45.199 one person, Mr Trump, for better or worse, has always 0:19:45.200 --> 0:19:48.040 been his own chief strategist. What's your sense of the 0:19:48.080 --> 0:19:51.639 intractability of this president? We were talking about John Kelly 0:19:51.840 --> 0:19:53.520 at the degree which he's begun to change the way 0:19:53.520 --> 0:19:56.280 the White House is running now that you've observed this 0:19:56.320 --> 0:19:59.640 president in this role for more than than seven months, Now, 0:20:00.480 --> 0:20:02.920 is he somebody who's who's a way of doing the 0:20:03.040 --> 0:20:06.560 job can be changed? Do you think sure? Because I 0:20:06.600 --> 0:20:10.240 think he's success driven. And uh, right now, if I 0:20:10.280 --> 0:20:12.280 were the chief of staff, I'd laid before the president 0:20:12.359 --> 0:20:15.880 the promises that he made in the campaign and and 0:20:15.880 --> 0:20:18.919 and then set forth the legislative agenda to provide for 0:20:19.080 --> 0:20:22.120 deals to be closed. The president now has to work Congress. 0:20:22.600 --> 0:20:25.280 And the success of this president will be his ability 0:20:25.320 --> 0:20:28.399 to keep his promises on the big ticket items like 0:20:28.480 --> 0:20:33.040 infrastructure and taxes and and and budget and military. The 0:20:33.080 --> 0:20:34.960 things that he promised the American people they're going to 0:20:35.040 --> 0:20:37.240 remember when they go to the polls. And by the way, 0:20:37.240 --> 0:20:40.000 two thousand eighteen, we have every member of the House 0:20:40.080 --> 0:20:42.760 up for reelection as well as one third of the Senate, 0:20:43.000 --> 0:20:45.760 and if Republicans want to hold that majority, then they 0:20:45.800 --> 0:20:48.760 have to have a record to run on. You've you've 0:20:48.800 --> 0:20:51.400 done work as a communications consultant. I wonder what you 0:20:51.400 --> 0:20:53.080 you make of what we've seen with your card to 0:20:53.119 --> 0:20:56.000 the President tweeting the president not sticking to script. I 0:20:56.000 --> 0:20:58.440 think a lot of his Republican supporters in particular, would 0:20:58.440 --> 0:21:01.000 like nothing more, uh for him to be talking about 0:21:01.000 --> 0:21:03.480 taxi for him now, if not exclusively than that, than 0:21:03.520 --> 0:21:06.000 almost So how do you get somebody to to to 0:21:06.040 --> 0:21:07.600 stay on topic? How do you get the president to 0:21:07.640 --> 0:21:10.280 focus on on these issues that would make him you say, 0:21:10.320 --> 0:21:13.520 he's success driven, maybe lead to some some legislative successes. Well, 0:21:13.600 --> 0:21:16.600 I would tell the president, sir, you can be spontaneous, 0:21:17.119 --> 0:21:21.240 and you can be reactionary to to news it as 0:21:21.280 --> 0:21:23.720 it happens, but there's got to be a method to 0:21:23.760 --> 0:21:27.000 the madness. And uh, there has to be a communications 0:21:27.040 --> 0:21:29.879 strategy that's honored by the staff but also honored by 0:21:29.880 --> 0:21:33.119 the president and um and I think there's gotta be 0:21:33.200 --> 0:21:37.919 more deliberative tweeting. There's gotta be more targeted tweeting the 0:21:37.920 --> 0:21:41.359 president certainly understands the targeting of messaging. He's done it 0:21:41.440 --> 0:21:43.640 his entire life. Now it needs to be a little 0:21:43.640 --> 0:21:47.159 bit more honed and and uh and thought out. And 0:21:47.200 --> 0:21:50.480 I think General Kelly needs to hire somebody sooner rather 0:21:50.480 --> 0:21:54.440 than later a good communications strong communications Personally. I think 0:21:54.480 --> 0:21:59.040 the president respects and and willum and and we'll uh 0:21:59.080 --> 0:22:02.199 adhere to And you see a president that is willing 0:22:02.440 --> 0:22:05.720 to listen. What we we've heard many times and over 0:22:05.760 --> 0:22:08.160 and over is that you have people that advise him, 0:22:08.200 --> 0:22:10.480 but then he goes at it his own way. Well, 0:22:10.520 --> 0:22:12.560 I think a lot of the problems this White House 0:22:12.600 --> 0:22:15.720 has is simple to me, and that is the people 0:22:15.720 --> 0:22:17.720 who get you to the White House and the campaign 0:22:17.960 --> 0:22:20.280 are not necessarily the people you need when you get there. 0:22:20.800 --> 0:22:24.879 And I think once you peel away the campaign staff 0:22:25.280 --> 0:22:29.080 and start hiring professional people who know Washington, know how 0:22:29.119 --> 0:22:33.560 it works, insiders are not necessarily swamp creatures. Um. They 0:22:33.560 --> 0:22:36.400 can they can help you navigate this town and get 0:22:36.480 --> 0:22:38.880 you the success that you need in order to rack 0:22:39.000 --> 0:22:42.800 up uh. The achievements at that are the basis of 0:22:42.800 --> 0:22:45.680 the promises you made in the campaign. So I think 0:22:45.760 --> 0:22:49.120 discipline is key to an effective White House. But more 0:22:49.119 --> 0:22:53.200 importantly than that is teamwork. Mr Blakeman, who will define 0:22:53.240 --> 0:22:56.040 conservatism in the US. Is it bandoned or is it 0:22:56.040 --> 0:22:59.480 the Murdock's No. I think conservatism is going to be 0:23:00.160 --> 0:23:03.040 uh displayed by the parties and the leaders within the parties. 0:23:03.080 --> 0:23:06.920 It's not the outside people who were the influencers who 0:23:07.280 --> 0:23:10.040 determined conservatism. It's the people who are actually on the 0:23:10.080 --> 0:23:12.760 front lines who are putting their votes down. It's the 0:23:12.800 --> 0:23:15.960 president who's signing bills. Those are the things that directly 0:23:15.960 --> 0:23:19.159 affect the American people and that will determine the conservative 0:23:19.200 --> 0:23:24.359 movement in America. Uh. Do you recognize that the Republican Party, 0:23:24.480 --> 0:23:26.719 the views the Republican Party espoused by this president. You're 0:23:26.720 --> 0:23:28.800 somebody who has said worked for President George W. Bush. 0:23:28.800 --> 0:23:32.080 How much has the party changed since then? Well, we're 0:23:32.080 --> 0:23:36.439 not keeping to the platform and uh every four years, 0:23:36.760 --> 0:23:42.679 parties Uh deliberate, they fight, they can jole, Uh, they trade, 0:23:42.680 --> 0:23:45.760 they bargain, they compromise on the platform. My suggestion is 0:23:45.760 --> 0:23:48.280 get back to basics, get back to the platform that 0:23:48.400 --> 0:23:51.280 was hashed out at the convention. This is what we 0:23:51.359 --> 0:23:54.800 stand for. Honor the promises that were made, and you'll 0:23:54.840 --> 0:23:59.880 be wildly successful. The American people expect healthcare, they expect 0:24:00.240 --> 0:24:05.280 tax reform, they expect infrastructure, debt reduction, a strong military. 0:24:05.400 --> 0:24:07.160 These are the These are the things that you should 0:24:07.160 --> 0:24:10.560 be focused like a laser beam this fall on. UH. 0:24:10.680 --> 0:24:14.879 Tax reform must come. We have to have major accomplishments 0:24:14.880 --> 0:24:17.280 so that we can run in two thousand eighteen and 0:24:17.359 --> 0:24:19.760 retain our majorities in the House and the Senate. All right, 0:24:19.760 --> 0:24:21.400 Prab Blakeman, thank you very much for the time this morning. 0:24:21.440 --> 0:24:23.400 Brad Blakeman joining us for our ninty on one studios 0:24:23.440 --> 0:24:25.520 in Washington, d C. He was an adviser to President 0:24:25.560 --> 0:24:39.160 George W. Bush. Johnny is now on our phone lines days. 0:24:39.160 --> 0:24:41.840 Grover Nork which the President Americans for tax from always 0:24:41.880 --> 0:24:43.760 great to speak with him to hear his thoughts on 0:24:43.800 --> 0:24:46.520