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Speaker 1: You're listening to the Bloomberg Sound on podcast. Catch us

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Speaker 1: live weekdays at one Eastern on Bloomberg dot com, the

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Speaker 1: I Heart Radio app, and the Bloomberg Business App. We're

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Speaker 1: listening on demand wherever you get your podcast. We're going

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Speaker 1: to be busy exploring the possibilities of what might happen

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Speaker 1: today and the political impact of this FED meeting. We

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Speaker 1: start now with former Republican Pennsylvania Senator Pat Toomey, who

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Speaker 1: served as ranking member on the Senate Banking Committee until

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Speaker 1: just a couple of months ago. Senator, it's great to

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Speaker 1: have you back. Hey, Joe, thanks for having me. It's

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Speaker 1: a pleasure to have you on FED Day. I keep

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Speaker 1: hearing it's one of the most important FED meetings of

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Speaker 1: the entire cycle, maybe our lives. Do you agree, No, Look,

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Speaker 1: it's not unimportant, and it is a dilemma for the Bank,

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Speaker 1: for the Central Banking, for US, for the FED, because

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Speaker 1: they've got a kind of way at the question of

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Speaker 1: how much tightening of the credit conditions has occurred by

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Speaker 1: virtue of the problems in the banking sector. You know,

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Speaker 1: how much of this fallout from these bank failures, how

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Speaker 1: much has it done some of the work for the FED,

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Speaker 1: and will further tightening do some more damage. I think

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Speaker 1: we don't know for sure whether it has any significant effect,

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Speaker 1: but it might. And then failure to move the rate, well, well,

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Speaker 1: what does that message? Does that sand? Clearly the FED

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Speaker 1: cannot say that inflation is under control. They can't even

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Speaker 1: say with confidence that it's heading that way. Not yet.

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Speaker 1: It might be that what they've already done is going

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Speaker 1: to take us there, but the data doesn't confirm that.

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Speaker 1: And then you know, even the tightening that's already occurred

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Speaker 1: by virtue of the bank problems is somewhat upset by

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Speaker 1: lower interest rates. So you got an awful lot of

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Speaker 1: cross current here. Wouldn't want to be Joe No, And

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Speaker 1: can I say something, as you know, as much as

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Speaker 1: they're in a dilemma, I really think we should be

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Speaker 1: candid about this. They're in a dilemma of their own creation.

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Speaker 1: All of this heard as a direct result of the

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Speaker 1: mismanagement of monetary policy. They just think back to a

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Speaker 1: couple of years ago when they were flooding the economy

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Speaker 1: with massive amounts of money, and the government was spending

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Speaker 1: massive amounts of money much more than what the economic

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Speaker 1: contraction required. And so what happened. We find a lot

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Speaker 1: of deposits washing up on the shores of regional banks. Unsurprisingly,

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Speaker 1: and then since the FED was maintaining negative real interest

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Speaker 1: rates zeroinomenal interest rates, banks inevitably reached for yields. They

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Speaker 1: did that by extending out the duration curve. And then

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Speaker 1: when the FED finally realized the era of its ways

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Speaker 1: and was way behind the curve, and so they started

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Speaker 1: to drastically and suddenly raise rates. Why, they started to

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Speaker 1: creator the value of the bond portfolios that they were

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Speaker 1: responsible for. So all that said, we're still seeing some

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Speaker 1: tough headlines. Pack West is the latest here, another another

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Speaker 1: move to shore up liquidity after customers pulled twenty percent

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Speaker 1: of their deposits. I guess when you step back here

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Speaker 1: is are we in a better place than we were

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Speaker 1: two weeks ago? Or is this still getting worse? This

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Speaker 1: smacks of contagion though, yeah, so well, it's not contagion

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Speaker 1: in the classic sense or in the two thousand and

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Speaker 1: eight sense of an exposure of one bank to another

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Speaker 1: creates a domino effect. Rather, it's the discovery that all banks,

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Speaker 1: not all banks, but many banks have the same problem. Yeah,

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Speaker 1: which is they reached out, the risk curve went longer

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Speaker 1: in duration. The tightening has put that bond portfolio under water.

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Speaker 1: And if they have to sell those bonds now to

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Speaker 1: on a deposit withdrawls, they can't do it. What the FED,

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Speaker 1: I'm sure they're looking very very closely, is what is

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Speaker 1: the scale of these outflows? Sure? How many banks are

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Speaker 1: fundamentally upside down? If you mark to market their hold

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Speaker 1: to maturity bonds, how bad is it? You know they

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Speaker 1: have it's a huge bailout that they've offered in the

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Speaker 1: form of extending credit based on the face value of

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Speaker 1: bonds rather than on their market value. You know. One

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Speaker 1: way to look at that is that the extent to

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Speaker 1: which the face value exceeds the market value and the

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Speaker 1: FED extends credit, that's an unsecured credit that they're providing,

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Speaker 1: which of course the FED is not supposed to do,

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Speaker 1: and only the Feds to what extent deposits are being

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Speaker 1: pulled out of these banks in real time? Right, So,

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Speaker 1: if there's no hike today, and I think you were

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Speaker 1: suggesting this, that could spook the market much more. Well,

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Speaker 1: exactly with the overwhelming consensus that there will be twenty

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Speaker 1: five basis points with everybody knowing that the Fed realizes

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Speaker 1: it has not achieved its goal on inflation, not even close.

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Speaker 1: The failure to raise the FED funds rate by another

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Speaker 1: twenty five basis points will be understood I think as

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Speaker 1: a comment about their concern about the markets, and that

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Speaker 1: could in fact exacerbate the problem. I'm sure you know,

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Speaker 1: just send it. Cynthia Lumis of Wyoming is bringing back

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Speaker 1: to life legislation that you once proposed to make regional

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Speaker 1: FED presidents presidential appointees, therefore confirmed by the Senate. Does

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Speaker 1: that need to happen? Would that have prevented these initial

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Speaker 1: collapses like spb oh, I wouldn't say that you could

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Speaker 1: be confident that that would have prevented it, but you know,

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Speaker 1: part of my experience to be a real line of accountability,

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Speaker 1: though there would be. And that's the thing, right um.

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Speaker 1: You know, one of my experiences in the ranker on

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Speaker 1: the Senate Banking Committee was the extent to which these

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Speaker 1: regional banks refused to even bond to request for information.

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Speaker 1: That's indefensible. They believe, some of them anyway, apparently that

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Speaker 1: they're unaccountable. That even the Committee of Jurisdiction in the

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Speaker 1: United States Senate can't get answers to fundamental question about

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Speaker 1: how they're operating their banks. That's totally unacceptable. And so

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Speaker 1: this legislation would at least provide some level of accountability

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Speaker 1: and that is important. Are you looking around right now saying, man,

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Speaker 1: I called that right. I wouldn't want to be in

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Speaker 1: the middle of that in a million years. Well, you know,

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Speaker 1: my decision was a personal decision. After spending eighteen years

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Speaker 1: in Congress, I was just ready to move on. What's

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Speaker 1: your broad view? Lastly, then, you spent a good deal

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Speaker 1: of time in this uh, in this sector, if I

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Speaker 1: can call it that, in this financial world, at least

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Speaker 1: on Capitol Hill. Are we closer to the end on

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Speaker 1: this or is this just the beginning? And in this

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Speaker 1: episode I will tell you I am worried that a

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Speaker 1: possibly inevitable next step that follows from the facility that

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Speaker 1: the bed set up what a week a little over

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Speaker 1: a week ago. Now the next step is explicit universal

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Speaker 1: guarantees on all deposits. I'm afraid that that we have

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Speaker 1: put things in motion will lead to that outcome. And

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Speaker 1: I think it's a very bad outcome. Do you really

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Speaker 1: think Congress will do that? If if no more banks fail,

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Speaker 1: because I feel like, you know, the Treasury is talking

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Speaker 1: about temporary solutions. You know how hard it is to

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Speaker 1: get meaningful legislation passed in this divided Congress. A lot

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Speaker 1: of people think Congress does nothing in the end. Yeah,

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Speaker 1: I'm afraid that they'll do it administratively. They will find well,

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Speaker 1: it will be it'll be contested, I'm sure. But if

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Speaker 1: they decide to declare that it's systemically that deposits are

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Speaker 1: systemically critical to our economy, and they have a lot

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Speaker 1: of latitude. If they decide to invoke systemic risk, what

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Speaker 1: would be wrong with the Well, it's the end of

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Speaker 1: private any hope for private enforcement of prudential management of banks.

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Speaker 1: There would no one would have any incentive to care. So,

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Speaker 1: like Ken Griffin said, this is the that would be

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Speaker 1: the unraveling of capitalism. And as King Griffin said, it

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Speaker 1: takes you a big step that way. And then, of course,

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Speaker 1: what the left will say if there is this universal

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Speaker 1: deposit guarantee. The left will say, well, we just officially

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Speaker 1: socialize the risk in this sector. We need to socialize

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Speaker 1: the upside too, at least to some degree. And so

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Speaker 1: now what does government get a stake in every bank,

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Speaker 1: Do we nationalize it? Do we put the post office

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Speaker 1: in the banking business? As some Democratic senators are big

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Speaker 1: advocates stuff. You know, I think this takes us to

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Speaker 1: a very bad place where we don't have we diminish

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Speaker 1: the ability of the market to allocate capital and we

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Speaker 1: start to centralize that and that's a very bad development

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Speaker 1: for the economy. And it encourages risk. I thought that's

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Speaker 1: what you'd say, Well, it does encourage risk, yeah, absolutely,

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Speaker 1: But again then there will be all kinds of regulation

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Speaker 1: that will flow from that, and you know, who knows

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Speaker 1: where that takes us, But it does take us away

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Speaker 1: from a market based allocation of capital, and that's a

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Speaker 1: bad thing. Now that you're not the ranking member but

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Speaker 1: not in the Senate, what do you do when the

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Speaker 1: fed and out? Do you actually sit there and watch this?

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Speaker 1: Do you look at your phone or are you out

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Speaker 1: to lunch while that's happening. Yeah, I'm working away here

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Speaker 1: in my home office, and you know, I've got multiple

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Speaker 1: electronic devices like iPads and phones, so you're still dialed in.

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Speaker 1: Most people do, so I'll know about it pretty quickly.

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Speaker 1: Pat Toomey, it's great to have you back with us

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Speaker 1: on Bloomberg Radio. I guess we'll all be watching here

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Speaker 1: in a couple of minutes to see what the heck happens.

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Speaker 1: Thanks for your insights today, come back and see us scene.

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Speaker 1: Thanks for having me. You're listening to The Bloomberg Sound

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Speaker 1: on podcast. Catch the program live weekdays at one Eastern

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Speaker 1: on Bloomberg Radio, the tune in app, Bloomberg dot Com,

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Speaker 1: and the Bloomberg Business App. You can also listen live

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Speaker 1: on Amazon Alexa from our flagship New York station Just

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Speaker 1: Say Alexa playing Bloomberg eleven thirty. Assemble our panel for

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Speaker 1: their take on all this with Bloomberg Politics contributor and

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Speaker 1: Democratic analyst Jennie Schanzano Joy today by Republican strategist Doug High,

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Speaker 1: the former communications director at the r NC. What are

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Speaker 1: you think here, Jeannie? The fed share has kind of

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Speaker 1: kind of a damned if you do, Dan, if you

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Speaker 1: don't scenario to he doesn't? He? He does? You know?

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Speaker 1: A senator to me, describing it as a dilemma, I

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Speaker 1: had something like a catch twenty two. All kinds of

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Speaker 1: analogies going on, because there are now real good options here,

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Speaker 1: and of course there are huge political not to mention

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Speaker 1: economic repercussions from all of this. And so you know

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Speaker 1: if he, as the Senator just explained, depending on what

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Speaker 1: he does, it's going to be a sign as to

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Speaker 1: what they are most worried about. And of course that

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Speaker 1: is a big challenge either way for the Biden administration.

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Speaker 1: The one thing the Biden administration has going for them

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Speaker 1: is they can sort of try to take a hant

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Speaker 1: off approach to this, but but the political reality is

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Speaker 1: they own whatever decision he makes, and they know that. Doug.

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Speaker 1: When j. Powell squints his eyes and tries to remember

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Speaker 1: life before SVB and Signature and Credit Suisse and First

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Speaker 1: Republic and all the rest, this was this was a knockdown,

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Speaker 1: drag out fight against inflict. He's got to be reminding

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Speaker 1: himself of that right now, doesn't he. That's a big

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Speaker 1: part of the complication is, you know, what you may

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Speaker 1: want to do for this situation with the banks goes

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Speaker 1: against what you may want to do when dealing with inflation.

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Speaker 1: And you know there's a correlation, there's also a causation,

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Speaker 1: and that's why everyone is nervous right now and knowing

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Speaker 1: that we're still you know, whether we're talking politically or

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Speaker 1: in the policy side of this. We're still early on

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Speaker 1: in this process. We don't know still what's going to

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Speaker 1: happen with say, Credit Swiss first Boston, and then potentially

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Speaker 1: with Deutsche Bank if if the deal with UBS doesn't

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Speaker 1: go through. I've been talking about FDIC insurance for over

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Speaker 1: a week here, Genie, you just heard Pat Toomey's take.

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Speaker 1: He's actually worried that universal coverage or insurance, whatever we

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Speaker 1: call it, might happen. While other lawmakers are demanding that

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Speaker 1: bank deposits are insured to save small to midsize banks.

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Speaker 1: If there's no consensus on this, there's no progress on it, right.

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Speaker 1: I can't imagine. I was surprised to hear that he

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Speaker 1: thinks that they may be able to push something through.

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Speaker 1: I can't imagine it would get through. It's incredibly controversial,

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Speaker 1: but I do think we're going to hear a lot

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Speaker 1: more congress people talk about it because they want to

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Speaker 1: on both sides make the case that you quote unquote

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Speaker 1: bailed out the big guys out there in Silicon Valley,

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Speaker 1: you won't do the same for our banks in our

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Speaker 1: back of our where we live. And that's a political problem.

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Speaker 1: So I think we're going to hear a lot about it,

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Speaker 1: But I can't believe that in the one hundred and

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Speaker 1: eighteenth that they would be able to pass universal coverage.

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Speaker 1: If this were the Trump administration, Doug, the President would

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Speaker 1: have already tweeted at J. Powell today. We've come a

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Speaker 1: long way from that to where this White House won't

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Speaker 1: go within twenty miles of any I mean, God, we

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Speaker 1: ask so many questions and they will not talk about

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Speaker 1: the FED. They will remind us of the independence of

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Speaker 1: the FED. It's days like these that remind us why

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Speaker 1: that's the case, right, Sure, but that's also sometimes a

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Speaker 1: distinction without a difference, at least in the mind of voters.

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Speaker 1: Whatever happens, good or bad, is going to be a

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Speaker 1: reflectionitically on the Biden administration. They'll have to deal with it,

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Speaker 1: and they'll have to deal with it. If everything goes

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Speaker 1: well and says, look what we did and we did

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Speaker 1: the right thing, they'll sure have to deal with it.

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Speaker 1: If it turns out to be a clean up on

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Speaker 1: Aisle five. And we're still at a point where we

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Speaker 1: just don't know yet. We don't even know what aile

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Speaker 1: or in genie do we We do not. And I've

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Speaker 1: been waiting to see does your own power come out

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Speaker 1: with like a wind button on or like an FFS

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Speaker 1: button on secure the financial system or whip inflation. That's

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Speaker 1: what we need to see, which hackablary because well, you know, look,

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Speaker 1: it's this is gonna be a tough job for him,

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Speaker 1: not only rolling out that are making the decision, rolling

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Speaker 1: out the decision, but then justifying it and dealing with

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Speaker 1: a lot of reporters who have serious questions about bank stability,

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Speaker 1: about FDIC insurance, all of the stuff. What the heck

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Speaker 1: is going on with first Republic, the actions that the

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Speaker 1: FED took two weeks ago? What is this? This be

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Speaker 1: different than what we're used to here, Genie, you know

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Speaker 1: we've been talking about decorum in the White House briefing room.

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Speaker 1: Is this going to be a little bit more rambunctous today?

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Speaker 1: I think it is. I mean, as you said to

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Speaker 1: the Senator, many people feel this is the most important

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Speaker 1: FED meat of not just this year and not just

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Speaker 1: this term, but actually of their life, certainly since two

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Speaker 1: thousand and eight, and so I think he's going to

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Speaker 1: face a really sort of rambunctious, if the best case

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Speaker 1: way to say it. Press corps and they deserve and

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Speaker 1: they want answers, and I think they're going to press

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Speaker 1: him for those. If I was him, I would wear

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Speaker 1: the old Ford sign, wear the pin and say say

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Speaker 1: as little as you can and just put your pin on.

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Speaker 1: Well it is J Powell. I suspect he plays this

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Speaker 1: as straight as ever, right, Doug. Oh, absolutely that we know.

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Speaker 1: But ultimately it still matters what his decision is. And

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Speaker 1: that's not just about reassuring markets. That's about reassuring depositors,

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Speaker 1: ultimately about reassuring voters as well. Spending time with our panel,

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Speaker 1: Jeannie Chanzano and Doug High here on Bloomberg Sound On

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Speaker 1: with just about gosh, not very much more than ten

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Speaker 1: minutes to our special coverage and about forty minutes until

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Speaker 1: the actual decision is made. Genie, what do you want

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Speaker 1: to see him do? Do you have a take on

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Speaker 1: this quarter point or nothing? I think a quarter point

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Speaker 1: is probably what the middle ground. I would say. You're

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Speaker 1: feeling that way too, Doug. Yeah. The quarter point is

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Speaker 1: we don't really want to make a decision here. If

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Speaker 1: you hold, if you hold the basis points firm, you've

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Speaker 1: done one thing. If you go to to fifty basis

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Speaker 1: points you've done another twenty five is weirdly sort of

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Speaker 1: that non decision. It looks like more with the panel. Next,

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Speaker 1: this is Bloomberg. You're listening to the Bloomberg Sound on podcast.

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Speaker 1: Catch the program live weekdays at one Eastern on Bloomberg Radio,

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Speaker 1: the tune in app, Bloomberg dot Com, and the Bloomberg

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Speaker 1: Business app. You can also listen live on Amazon Alexa

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Speaker 1: from our flagship New York station, Just say Alexa play

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Speaker 1: Bloomberg eleven thirty. It's on in Florida, Rhnda Santis returning

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Speaker 1: fire after Donald Trump spent weeks criticizing the Florida governor,

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Speaker 1: and the Santis has chosen venue is Pierce Morgan's program.

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Speaker 1: All right, this is something there with the Apprentice Ray.

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Speaker 1: There a little bit of a recap in the New

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Speaker 1: York posts they're watching, so you don't have to. I

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Speaker 1: believe Morgan wrote that as well. And you know, the

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Speaker 1: big question is what makes you different? And the bigger

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Speaker 1: question is we'll let Pere's Morgan ask whether it's the

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Speaker 1: Marlago Raid or the unselect Committee. Her favorite nickname that

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Speaker 1: Trump's given you so far as name the Sanctimonius or

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Speaker 1: meat bull Row. Well, I can't. I can't. I don't

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Speaker 1: know how to spell the sanctimonious. I don't really know

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Speaker 1: what it means, but I, you know, I kind of

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Speaker 1: like it's long, it's got a lot of valve. I mean,

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Speaker 1: so we go with that. That's fine. You know, you

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Speaker 1: can call me and you can call me whatever you want.

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Speaker 1: I mean, just as long as you, you know, also

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Speaker 1: call me a winner. Let's keep things very literal for

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Speaker 1: the next couple of minutes as we reassemble our panel

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Speaker 1: for their take on this. Republican strategist Doug High as

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Speaker 1: with us along with Bloomberg Politics contributor Democratic analyst Genie Shanzino. Doug,

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Speaker 1: you've got to be loving this, Um, what's on what?

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Speaker 1: On what level? Under the pure entertainment level? Okay, maybe

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Speaker 1: you're not. Is this actually worrying you about the trajectory

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Speaker 1: of republicans chances in twenty twenty. No, it's just a

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Speaker 1: continuation of, you know, where Republicans have put themselves over

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Speaker 1: the last few years, and we don't expect it to

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Speaker 1: change anytime soon. We'll talk about it over and over again,

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Speaker 1: but until people are on a debate stage with Donald Trump,

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Speaker 1: it's all kind of, you know, the game show aspect

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Speaker 1: of what our politics has become. They've got to stand

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Speaker 1: next to each other and have these conversations, and until that,

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Speaker 1: it's just going to be more and more of the same,

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Speaker 1: regardless of what venue it is, whether it's Piers Morgan

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Speaker 1: for whatever reason or somewhere else. Yeah, I don't look.

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Speaker 1: You know, we talked about this with Josh Green yesterday, Genie.

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Speaker 1: The idea was, you know, we thought there'd be this

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Speaker 1: clash of the titans on a debate stage, like Doug

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Speaker 1: is suggesting. Maybe that still happens. But these guys are

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Speaker 1: starting now. Will this actually resolve itself before the race

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Speaker 1: gets that for Heck no. And you know, I think

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Speaker 1: the reason they're starting now is because DeSantis is looking

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Speaker 1: at these polls. I'm looking at the Real Clear Politics average.

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Speaker 1: Right now, Trump is up fifteen points the last eight

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Speaker 1: poles that he is beating DeSantis sometimes by twenty nine

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Speaker 1: and thirty points. Now, granted, DeSantis hasn't announced yet and

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Speaker 1: all of that, but they too can read the polls.

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Speaker 1: They know that Trump has been creeping on up ahead

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Speaker 1: of him. Last morning console tracking Pole, he was up

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Speaker 1: by double digits and so they had to strike back.

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Speaker 1: So I think that's what we're seeing as everybody's saying

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Speaker 1: to Santis taking the gloves off. But I think they

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Speaker 1: have to be really careful. And I'll tell you why.

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Speaker 1: You remember that correspondence dinner when Barack Obama really took

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Speaker 1: Trump on. Trump doesn't take to humiliation well, and DeSantis,

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Speaker 1: Piers Morgan and Fox and the New York Post all

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Speaker 1: after him. He may hit back hard. We've already seen

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Speaker 1: some of that. So I am waiting to see what

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Speaker 1: happens with bated breath. This is the best thing that

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Speaker 1: could happen to Democrats, so they can keep it going.

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Speaker 1: What makes you different was an interesting part of the

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Speaker 1: interview because you know, they actually have a lot of

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Speaker 1: overlap on a lot of issues. He's supposed to be

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Speaker 1: Trump without the drama, right, so he listened to how

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Speaker 1: he put it well, I mean, I think there's a

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Speaker 1: few things, and obviously, you know, the approach to COVID

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Speaker 1: was different. I mean, you know, I would have fired

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Speaker 1: somebody like Fauci. I think that he got way too

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Speaker 1: big for his britches, and I think he did a

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Speaker 1: lot of damage. I also think just in terms of

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Speaker 1: my approach to leadership. You know, I get personnel in

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Speaker 1: the government who have the agenda of the people and

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Speaker 1: share our agenda. If you bring your own agenda in,

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Speaker 1: you're gone. Oh so Doug, other than too big for

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Speaker 1: his britches, which I think the last time I heard

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Speaker 1: that was my old French Canadian aunts a lot of

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Speaker 1: years ago. Something quaint about that. There. The way he's

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Speaker 1: approaching this, does he need to make a greater difference.

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Speaker 1: You know, the fire Fauci thing was closely associated with

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Speaker 1: Donald Trump already, wasn't it. Well, I'd say that, actually,

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Speaker 1: Ronda Santis is very much keeping the gloves on. These

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Speaker 1: are soft punches. You know. He's making some differences of

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Speaker 1: distinction on where he is versus Trump, but he's not

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Speaker 1: going after Trump. Yeah, okay, I'll be less drama. He's

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Speaker 1: not saying Donald Trump is too much drama because he

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Speaker 1: might have broken a law in all of this, and

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Speaker 1: even the you know, the reference to I don't understand

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Speaker 1: about paying cornstars for money. Okay, fine, but he's not

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Speaker 1: directly going after Trump. And what he's doing is he's

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Speaker 1: really denying Trump that you know, Manoamano fight that Trump

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Speaker 1: is begging for and I think right now that's the

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Speaker 1: smart and strategic asher to have. You can't do that forever,

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Speaker 1: but until they're up on a debate debate stage. We're

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Speaker 1: planning on that. To take on Trump directly like this now,

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Speaker 1: I think would be a mistake. Doug High and Jeannie

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Speaker 1: Schanzano in our remaining moments here before we get to

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Speaker 1: the Fed, I want to get back to where we

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Speaker 1: started here. And it's an awfully important story as politicians

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Speaker 1: weigh in on this, And now, my goodness, this is

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Speaker 1: quite a meeting of the minds. Nothing like a common

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Speaker 1: foe genie when you hear that Elizabeth Warren is getting

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Speaker 1: together with Rick Scott to propose bipartisan legislation Cats and

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Speaker 1: dogs living together to basically arrange a new watchdog for

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Speaker 1: the Federal Reserve. Following what we've seen in the banking sector.

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Speaker 1: It would call for a new inspector general. Does this

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Speaker 1: have a chance, you know, I think this could actually

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Speaker 1: have a chance. I think some of what we have

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Speaker 1: learned since SVBS collapse, things like you know, the idea

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Speaker 1: that the CEO was also on the San Francisco FED,

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Speaker 1: those things Republicans numbers should get together and make sure

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Speaker 1: they don't happen, because it screams corruption. And that's why

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Speaker 1: I think Scott and Warren and these people getting together,

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Speaker 1: it's something could happen. I'm not completely confident, but it

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Speaker 1: should happen. Every now and then you see alliance's breakout

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Speaker 1: like this, Doug. Does it increase the chances of this

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Speaker 1: passing or is this just another bill that gets clogged

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Speaker 1: in a divided Congress? Well, it could be both. Certainly,

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Speaker 1: when you have a bipartisan bill on something that's an

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Speaker 1: issue of the day, you have a greater chance if

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Speaker 1: it's able to get through. But we also have to

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Speaker 1: wait and see what happens. This may be a proposed

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Speaker 1: solution to a problem that we don't know exists yet.

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Speaker 1: And that's what we'll find out, not just in ten

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Speaker 1: minutes from now, but ultimately over the next coming days, weeks,

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Speaker 1: if not months, we'd be looking at another nomination from

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Speaker 1: the president here would have to be approved by the Senate. Genie,

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Speaker 1: and boy, this is already an issue getting people appointed

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Speaker 1: to the Fed. Does that just slow things down even more? Absolutely,

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Speaker 1: and imagine the pressure that the president is going to feel,

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Speaker 1: you know, in this case, Elizabeth Warren will be very

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Speaker 1: far from some of her Republican counterparts. They have been

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Speaker 1: feeling all kind of pressure on who to nominate. We've

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Speaker 1: seen that throughout his administration, and of course at this

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Speaker 1: point in time, it would be all that much more contentious.

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Speaker 1: So you know, he's going to try to make a

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Speaker 1: nomination if that has to happen, but there he's going

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Speaker 1: to be pressured from all sides, so you know that

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Speaker 1: that would be a fight to watch. And of course

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Speaker 1: they've been slowed down on all of this and that's

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Speaker 1: been painful to watch. Well until then, it's the FED

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Speaker 1: investigating the FED DOUG. We've discussed this briefly that you know,

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Speaker 1: the FED is going to do an internal review of

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Speaker 1: its supervision and regulation of SVB. Michael Barr is going

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Speaker 1: to conduct this. Is anyone going to see that as

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Speaker 1: a credible result when it comes out in May? I

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Speaker 1: mean the problem is when anybody investigates themselves, they tend

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Speaker 1: to take it easy on themselves. This is why Congress

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Speaker 1: has committees of jurisdiction and has oversight, and certainly Congress

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Speaker 1: is going to be bringing not just yelling, but a

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Speaker 1: whole lot of people up up to Congress to answer

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Speaker 1: these questions directly, and then whether there's legislation or will

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Speaker 1: be what the follow through is, I don't know, Jennie.

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Speaker 1: They're already talking about this idea of regional FED bank

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Speaker 1: presidents being appointed by the President. Now in ig this

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Speaker 1: is going to be difficult for the White House to

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Speaker 1: navigate these waters if they actually came about it. Absolutely will.

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Speaker 1: It is a politically fraught time, and I think the

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Speaker 1: most important thing for the President and quite frankly for

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Speaker 1: Jerome Powell and the Fed is to try to speak

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Speaker 1: to the American public and justify what actions they are

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Speaker 1: taking and whatever he decides to do today, because that's

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Speaker 1: as we look back through history where all of their

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Speaker 1: predecessors say that they fell short was they couldn't restore

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Speaker 1: public confidence in banking, in the FED, in big economic institutions,

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Speaker 1: and the political fallout from that is something we continue

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Speaker 1: to sit with today. Yeah, great conversation. I do appreciate

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Speaker 1: the insights as always, Jennie Chanzano, Bloomberg Politics contributor and

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Speaker 1: Democratic analysts that they joined by Republican strategist Dog Hi.

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Speaker 1: Thanks for listening to the sound on podcast. Make sure

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