1 00:00:01,840 --> 00:00:06,360 Speaker 1: Now from our nation's capital. This is Bloomberg Sound on 2 00:00:07,520 --> 00:00:09,520 Speaker 1: the same people who gave five the low box and 3 00:00:09,600 --> 00:00:14,319 Speaker 1: approval gave extremely high marks to the heart infrastructure field. 4 00:00:14,400 --> 00:00:18,760 Speaker 1: Democrats didn't show up. They were not motivated, they're not excited. 5 00:00:18,880 --> 00:00:23,960 Speaker 1: Bloomberg Sound On Politics, Policy and perspective from DC's top name, 6 00:00:24,320 --> 00:00:27,240 Speaker 1: the National Transit. The Democrat Party definitely woke a lot 7 00:00:27,280 --> 00:00:29,080 Speaker 1: of people up that they needed to get out in vote. 8 00:00:29,080 --> 00:00:32,280 Speaker 1: The Biden administration seems to hate the owned gas industry 9 00:00:32,320 --> 00:00:35,040 Speaker 1: and which one of the reasons gash prices are so high. 10 00:00:35,520 --> 00:00:41,879 Speaker 1: Bloomberg Sound On with Joe Matthew on Bloomberg Radio. The 11 00:00:41,880 --> 00:00:46,160 Speaker 1: Fed chair speaks, the markets tank, all macrons still hanging 12 00:00:46,200 --> 00:00:48,640 Speaker 1: over us. There's still no plan for the debt ceiling, 13 00:00:49,280 --> 00:00:51,680 Speaker 1: and the CBO is now warning the U. S. Treasury 14 00:00:51,720 --> 00:00:54,080 Speaker 1: could run out of cash before the end of December. 15 00:00:54,080 --> 00:00:57,560 Speaker 1: Welcome to the fastest hour in politics. You may want 16 00:00:57,560 --> 00:01:00,680 Speaker 1: to grab a hold of something. With a shift cycle 17 00:01:00,880 --> 00:01:04,160 Speaker 1: now spinning here in Washington, and after we bring you 18 00:01:04,200 --> 00:01:07,440 Speaker 1: the latest from Washington to Wall Streets, we'll talk about 19 00:01:07,440 --> 00:01:11,400 Speaker 1: it with Congressman Frank Lucas, Republican from Oklahoma. The Rancher 20 00:01:11,600 --> 00:01:14,760 Speaker 1: on the House Financial Services Committee, where he had J. 21 00:01:14,880 --> 00:01:20,080 Speaker 1: Powell and Janet Yellen testify in round two tomorrow. After 22 00:01:20,160 --> 00:01:23,560 Speaker 1: making a lot of news today and as defense spending 23 00:01:23,640 --> 00:01:26,400 Speaker 1: hits a setback in the Senate, will discuss the policy 24 00:01:26,440 --> 00:01:29,959 Speaker 1: behind the money with retired General Mark Kimmittt, former Assistant 25 00:01:30,000 --> 00:01:33,520 Speaker 1: Secretary of State for Political Military Affairs. Later this hour, 26 00:01:33,600 --> 00:01:36,640 Speaker 1: we have the signature panel back today Bloomberg Politics contributors 27 00:01:36,680 --> 00:01:39,600 Speaker 1: Jeanie Chanzano and Rick Davis or with us. It was 28 00:01:39,640 --> 00:01:42,680 Speaker 1: something to hear J. Powell actually say it. He may 29 00:01:42,720 --> 00:01:47,080 Speaker 1: have rehearsed it because he sounded so casual. You might 30 00:01:47,120 --> 00:01:50,200 Speaker 1: have missed it if you weren't paying attention, as opposed 31 00:01:50,240 --> 00:01:52,600 Speaker 1: to the old days when Alan Greenspan would simply just 32 00:01:52,680 --> 00:01:56,960 Speaker 1: say it in another language. This this was plain English today. 33 00:01:57,000 --> 00:01:59,840 Speaker 1: On the timeline for the taper, since the last meeting, 34 00:02:00,280 --> 00:02:07,640 Speaker 1: we've seen UM basically elevated inflation pressures. We've seen very 35 00:02:07,720 --> 00:02:12,080 Speaker 1: strong labor market data without any improvement in labor supply UH, 36 00:02:12,120 --> 00:02:15,480 Speaker 1: and we've seen strong spending data too so and remembering 37 00:02:15,480 --> 00:02:21,480 Speaker 1: that every dollar of asset purchases does increase accommodation UM, 38 00:02:21,560 --> 00:02:24,160 Speaker 1: we now look at an economy that's very strong and 39 00:02:24,200 --> 00:02:27,880 Speaker 1: inflationary pressures that are high, and that that that means 40 00:02:27,919 --> 00:02:30,240 Speaker 1: it's appropriate, I think for us to discuss at our 41 00:02:30,280 --> 00:02:32,680 Speaker 1: next meeting, which is in a couple of weeks, whether 42 00:02:32,720 --> 00:02:35,520 Speaker 1: it will be appropriate to wrap up our our purchases 43 00:02:35,720 --> 00:02:39,720 Speaker 1: a few months earlier. There it is, it's like falling 44 00:02:39,760 --> 00:02:42,639 Speaker 1: off a log. And it was Senator John Kennedy, the 45 00:02:42,680 --> 00:02:46,960 Speaker 1: Republican from Louisiana, who drew it out of J. Powell, 46 00:02:47,720 --> 00:02:52,120 Speaker 1: with the question asked in a similar form of plain English. Listen. 47 00:02:52,280 --> 00:02:57,799 Speaker 1: I reminded that no one is clairvoyant. But I think 48 00:02:57,840 --> 00:03:02,440 Speaker 1: it's fair to say that the the experts who have 49 00:03:02,639 --> 00:03:08,960 Speaker 1: been advising you about the future rate of inflation have 50 00:03:10,800 --> 00:03:14,720 Speaker 1: pretty much the same credibility of those as those uh 51 00:03:15,120 --> 00:03:20,040 Speaker 1: late night psychic hotlines you see on TV. Um is 52 00:03:20,080 --> 00:03:27,040 Speaker 1: the FED considering increasing the pace of its tapering. We 53 00:03:27,040 --> 00:03:30,920 Speaker 1: we've got to get control of inflation. It's it's ravaging 54 00:03:30,960 --> 00:03:36,120 Speaker 1: our people. And you've heard the answer two important moments 55 00:03:36,160 --> 00:03:39,600 Speaker 1: from today's hearing before the Senate Banking Committee. You heard 56 00:03:39,640 --> 00:03:42,880 Speaker 1: this unfold, of course on Bloomberg Radio. J Powell even 57 00:03:42,880 --> 00:03:45,080 Speaker 1: said it was time to stop using the word transitory. 58 00:03:45,160 --> 00:03:48,520 Speaker 1: Did you hear that? So? I think the word transitory 59 00:03:48,680 --> 00:03:51,440 Speaker 1: has different meanings of different people. Too many it carries 60 00:03:51,480 --> 00:03:55,400 Speaker 1: a time, a sense of of short lived. We we 61 00:03:55,520 --> 00:03:59,080 Speaker 1: tended to to use it to mean that that it 62 00:03:59,080 --> 00:04:02,280 Speaker 1: won't leave a permanent mark in the form of higher inflation. 63 00:04:02,640 --> 00:04:04,840 Speaker 1: I think it's it's probably a good time to retire 64 00:04:04,920 --> 00:04:07,480 Speaker 1: that that word and try to explain more clearly what 65 00:04:07,520 --> 00:04:12,000 Speaker 1: we mean. I've heard it all. Tomorrow, Powell and Yelling 66 00:04:12,160 --> 00:04:15,720 Speaker 1: have a similar engagement plan with the House Financial Services Committee, 67 00:04:15,720 --> 00:04:17,839 Speaker 1: and we're joined now by one of its members, Congressman 68 00:04:18,240 --> 00:04:21,440 Speaker 1: Frank Lucas, as promised Republican from Oklahoma. It's good to 69 00:04:21,480 --> 00:04:24,520 Speaker 1: have you, Congressman. Welcome. What's what's the most important question 70 00:04:24,560 --> 00:04:27,320 Speaker 1: you have for the FED here tomorrow? I think, Joe, 71 00:04:27,360 --> 00:04:30,359 Speaker 1: we have to look at is BBB really paid for? 72 00:04:31,240 --> 00:04:34,760 Speaker 1: We have to look at how is Treasury and FED 73 00:04:34,839 --> 00:04:38,120 Speaker 1: going to respond to this dramatic increase in the dead ceiling. 74 00:04:38,120 --> 00:04:40,280 Speaker 1: I mean, when we went from twenty trillion dollars at 75 00:04:40,279 --> 00:04:43,480 Speaker 1: the beginning of COVID to twenty nine trillion dollar national debt, 76 00:04:43,560 --> 00:04:45,880 Speaker 1: Now that's a huge amount of money pumped out into 77 00:04:45,920 --> 00:04:49,159 Speaker 1: the economy. Of course you're gonna have inflation. The dead 78 00:04:49,200 --> 00:04:53,479 Speaker 1: ceiling question, what is the real date? Uh, it's gonna 79 00:04:53,520 --> 00:04:57,160 Speaker 1: be a really lively hearing tomorrow, Joe. It sounds like 80 00:04:57,240 --> 00:04:59,640 Speaker 1: it were here now. We heard from CBO today that 81 00:04:59,800 --> 00:05:02,160 Speaker 1: be could be before the end of December. Do you 82 00:05:02,200 --> 00:05:06,600 Speaker 1: think the Treasury has a different take. I've been around 83 00:05:07,000 --> 00:05:09,880 Speaker 1: the Banking Committee since the days when Mr Greenspan used 84 00:05:09,920 --> 00:05:12,400 Speaker 1: to testify before us. Yes, I've been on the committee 85 00:05:12,400 --> 00:05:18,360 Speaker 1: when we've chased secretaries of the magic decoder ring. Yeah, exactly. 86 00:05:18,680 --> 00:05:20,760 Speaker 1: I don't know. I think they'll be able to create 87 00:05:20,760 --> 00:05:22,840 Speaker 1: whatever date they need, But the bottom line is it 88 00:05:23,000 --> 00:05:25,440 Speaker 1: has to happen, and no matter what my friends in 89 00:05:25,480 --> 00:05:29,000 Speaker 1: the Democratic majorities say, it's their responsibility to step up 90 00:05:29,000 --> 00:05:31,080 Speaker 1: to the plate on this and we'll see how they respond. 91 00:05:32,120 --> 00:05:36,360 Speaker 1: But this is just a continuation of the berserk nature 92 00:05:36,560 --> 00:05:40,120 Speaker 1: of Washington, d C. These days, and we have to 93 00:05:40,160 --> 00:05:42,320 Speaker 1: do the best we can in this environment. Well, let's 94 00:05:42,320 --> 00:05:45,159 Speaker 1: back up a little bit and just hit this inflation 95 00:05:45,200 --> 00:05:47,400 Speaker 1: note for a moment, because that was pretty startling for 96 00:05:47,400 --> 00:05:49,640 Speaker 1: the markets to hear Jef Howell say that today is 97 00:05:49,680 --> 00:05:51,880 Speaker 1: he doing the right thing? Is it time to to 98 00:05:52,240 --> 00:05:55,160 Speaker 1: quicken the taper, get on with the tightening. But Joe, 99 00:05:55,600 --> 00:05:59,320 Speaker 1: you can't continue to create money. You can't continue to 100 00:05:59,400 --> 00:06:02,880 Speaker 1: pop up public debt forever. This has to come to 101 00:06:02,920 --> 00:06:06,520 Speaker 1: a stop. In what fashion we get there, I do 102 00:06:06,600 --> 00:06:10,160 Speaker 1: not know. I was a young farmer in college in 103 00:06:10,240 --> 00:06:13,760 Speaker 1: the days of Mr Volker, under Jimmy Carter and then 104 00:06:13,839 --> 00:06:17,760 Speaker 1: Ronald Reagan. I remember paying seventeen cent to buy cowfeed 105 00:06:17,800 --> 00:06:23,320 Speaker 1: when I was overcollateralized. It is very, very stressful on 106 00:06:23,360 --> 00:06:25,200 Speaker 1: the economy, and the bottom line is how do you 107 00:06:25,240 --> 00:06:28,000 Speaker 1: make sure that the capital markets can make rational decisions, 108 00:06:28,040 --> 00:06:32,040 Speaker 1: allocate resources? Inflation to starts. All of that, in many 109 00:06:32,080 --> 00:06:34,680 Speaker 1: ways reminiscent of how the Biden administration is trying to 110 00:06:34,760 --> 00:06:39,720 Speaker 1: use regular Tory forces to change how we uh producer 111 00:06:39,760 --> 00:06:43,839 Speaker 1: and consumer energy. This this track we're on, we have 112 00:06:43,920 --> 00:06:46,320 Speaker 1: to get back to reality pretty soon, and we're not 113 00:06:46,400 --> 00:06:49,719 Speaker 1: there yet, and hopefully tomorrow in the Committee we'll press 114 00:06:49,760 --> 00:06:52,000 Speaker 1: on with that issue. Well, so you're gonna be sitting 115 00:06:52,040 --> 00:06:55,599 Speaker 1: across from Chair Powell, uh, and of course Secretary yelling 116 00:06:56,320 --> 00:06:58,480 Speaker 1: what's your thought on his renomination? Do you support it? 117 00:06:58,520 --> 00:07:01,720 Speaker 1: And do you trust him with the job of controlling inflation? 118 00:07:01,800 --> 00:07:03,599 Speaker 1: Do you just does he have your trust as a 119 00:07:03,600 --> 00:07:07,120 Speaker 1: member of the committee. You're talking about someone who's been 120 00:07:07,160 --> 00:07:10,720 Speaker 1: reappointed by the Biden administration. You're talking about an individual 121 00:07:11,080 --> 00:07:13,840 Speaker 1: who is the best we could possibly hope for coming 122 00:07:13,840 --> 00:07:16,640 Speaker 1: out of this crowd. You're talking about the administration is 123 00:07:16,680 --> 00:07:19,240 Speaker 1: going to give us a federal Vice chairman pretty soon 124 00:07:19,560 --> 00:07:22,520 Speaker 1: who's going to be tasked with using regulatory things to 125 00:07:22,520 --> 00:07:25,880 Speaker 1: torment the economy. Yes, Mr Powell is the best we 126 00:07:25,920 --> 00:07:29,080 Speaker 1: could possibly hope for in this situation right now. And 127 00:07:29,600 --> 00:07:31,360 Speaker 1: as you look across the year, he seems to think 128 00:07:31,400 --> 00:07:34,040 Speaker 1: prices are going to relax halfway through next year. That okay, 129 00:07:34,080 --> 00:07:35,920 Speaker 1: we're not going to use the word transitory, but if 130 00:07:35,920 --> 00:07:38,400 Speaker 1: I'm reading him right, you know, the next six months 131 00:07:38,440 --> 00:07:40,240 Speaker 1: or so we could be back to something more stable. 132 00:07:40,280 --> 00:07:43,640 Speaker 1: Do you believe that, Joe, I'm an eternal optimist, or 133 00:07:43,640 --> 00:07:45,720 Speaker 1: I wouldn't be a farmer and a member of Congress. 134 00:07:46,320 --> 00:07:49,280 Speaker 1: But when you increase the national debt by nine trillion 135 00:07:49,320 --> 00:07:51,440 Speaker 1: dollars in a year and a half, when you go 136 00:07:51,560 --> 00:07:55,080 Speaker 1: through the kind of stimulus program that the Feds have 137 00:07:55,160 --> 00:07:58,160 Speaker 1: gone through in quantitative easing, when you have the treasury 138 00:07:58,200 --> 00:08:02,520 Speaker 1: policy we had both under Rump and under Biden, you've 139 00:08:02,600 --> 00:08:09,160 Speaker 1: dramatically increased the dollars out there, chasing fewer and fewer resources. Uh. 140 00:08:09,360 --> 00:08:11,680 Speaker 1: I hope he's right, but I don't hardly see how 141 00:08:11,720 --> 00:08:14,280 Speaker 1: that can be the case unless he makes the changes 142 00:08:14,360 --> 00:08:18,240 Speaker 1: he's hinted at in federal policy. Congressmen, you're worried about 143 00:08:18,280 --> 00:08:23,720 Speaker 1: LAO brainers, aren't you? Yes? Yes, what's it going to 144 00:08:23,840 --> 00:08:27,520 Speaker 1: change in this They've been They've been built as essentially 145 00:08:27,600 --> 00:08:29,480 Speaker 1: the same person when it comes to policy. Is that 146 00:08:29,560 --> 00:08:34,000 Speaker 1: not true? Well, lots of people get built in an 147 00:08:34,000 --> 00:08:37,840 Speaker 1: interesting way in this day. Just say that. It sounds 148 00:08:37,840 --> 00:08:46,480 Speaker 1: like somebody said something about you. I'm an old school fella. 149 00:08:46,800 --> 00:08:50,240 Speaker 1: I believe that the market economy is the best way 150 00:08:50,240 --> 00:08:53,800 Speaker 1: to allocate resources. I believe interference from the federal government 151 00:08:53,840 --> 00:08:58,439 Speaker 1: is how we create bad situations that are sometimes destructive. 152 00:08:58,440 --> 00:09:01,800 Speaker 1: Beyond belief, I would lie for the administration to step 153 00:09:01,800 --> 00:09:05,560 Speaker 1: back from this desire, whether it's aggregcal where that's energy 154 00:09:05,600 --> 00:09:09,240 Speaker 1: in particular. Right now, when they can't pass bills to 155 00:09:09,240 --> 00:09:11,760 Speaker 1: to turn off certain forms of energy, and they can't 156 00:09:11,760 --> 00:09:14,360 Speaker 1: get their own majority to pass bills to tax those 157 00:09:14,440 --> 00:09:18,280 Speaker 1: forms out of existence, they want to use regulatory processes 158 00:09:18,320 --> 00:09:21,120 Speaker 1: to say to industry, you have to pretend that this 159 00:09:21,240 --> 00:09:26,480 Speaker 1: is a bad decision. Uh. That's distorting, that's distorting the market, 160 00:09:26,559 --> 00:09:29,000 Speaker 1: and we can't. We we have to fight that. Joe. 161 00:09:29,280 --> 00:09:32,040 Speaker 1: We're joined by Congress from Frank Lucas, Republican from Oklahoma, 162 00:09:32,400 --> 00:09:35,720 Speaker 1: who was on the committee that will be hosting Powell 163 00:09:35,840 --> 00:09:38,920 Speaker 1: yelling tomorrow. How about this deadline Friday? Can Democrats and 164 00:09:39,000 --> 00:09:41,160 Speaker 1: Republicans at least figure out how to fund the government 165 00:09:41,200 --> 00:09:42,719 Speaker 1: or a week? Do we kick the can again here 166 00:09:42,720 --> 00:09:46,760 Speaker 1: for a while? I think the willpower exists in the House. 167 00:09:47,000 --> 00:09:50,280 Speaker 1: I think we understand that a clean cr to fund 168 00:09:50,360 --> 00:09:53,240 Speaker 1: things over into January is the way to go. We've 169 00:09:53,280 --> 00:09:55,959 Speaker 1: all watched the stock market roll the last few days, 170 00:09:56,320 --> 00:09:59,120 Speaker 1: and no one wants to have a meltdown in the 171 00:09:59,160 --> 00:10:04,559 Speaker 1: holiday seas. But the other body is a different creature, 172 00:10:04,640 --> 00:10:07,000 Speaker 1: the United States Senate. They have a different way of 173 00:10:07,040 --> 00:10:12,000 Speaker 1: looking at things. I can only hope that will step 174 00:10:12,080 --> 00:10:14,079 Speaker 1: up and be reasonable and responsible, and I will hope 175 00:10:14,080 --> 00:10:16,959 Speaker 1: the administration will encourage their majorities in the House and 176 00:10:17,000 --> 00:10:21,120 Speaker 1: the Senate to pursue that reasonable and rational focus. Uh. 177 00:10:21,200 --> 00:10:22,480 Speaker 1: After all, if you're not going to play with the 178 00:10:22,480 --> 00:10:26,360 Speaker 1: political minority. Then you've got the responsibility work play however 179 00:10:26,400 --> 00:10:28,800 Speaker 1: you want to describe it. You have the responsibility to 180 00:10:28,880 --> 00:10:32,040 Speaker 1: do it yourself, and we'll see if they are responsible people. 181 00:10:32,400 --> 00:10:34,839 Speaker 1: I only have a minute, Congressman. I've enjoyed this conversation. 182 00:10:34,880 --> 00:10:37,040 Speaker 1: I just have to ask you about oh Macron, now 183 00:10:37,040 --> 00:10:39,240 Speaker 1: that it's entered our lexicon. I've heard a lot of 184 00:10:39,240 --> 00:10:42,480 Speaker 1: people mentioned to me over the past couple of days 185 00:10:42,480 --> 00:10:46,720 Speaker 1: that it's recalibrating everything in Washington. Everything is now being reconsidered. 186 00:10:46,800 --> 00:10:49,319 Speaker 1: Is that the case for you well? As ranking member 187 00:10:49,360 --> 00:10:52,480 Speaker 1: the Science Committee, I will tell you this is something 188 00:10:52,559 --> 00:10:57,640 Speaker 1: we all expected. Viruses never stop changing, they never stop mutating. 189 00:10:58,000 --> 00:11:00,240 Speaker 1: We still have the Spanish flu of nineteen eight team 190 00:11:00,360 --> 00:11:03,400 Speaker 1: amongst us only. It's had a hundred years of variations 191 00:11:03,400 --> 00:11:05,320 Speaker 1: to get to this point. I think we have to 192 00:11:05,320 --> 00:11:08,880 Speaker 1: be calm. But let's at least get everybody vaccinated with 193 00:11:08,920 --> 00:11:11,920 Speaker 1: the with the vaccines we have now, and then let's 194 00:11:12,400 --> 00:11:15,120 Speaker 1: step up with the next variation of the vaccines. To 195 00:11:15,120 --> 00:11:18,199 Speaker 1: move forward, We're gonna be We're gonna be vaccinated for 196 00:11:18,320 --> 00:11:21,599 Speaker 1: COVID every year, just as we're vaccinated for the flu. 197 00:11:21,760 --> 00:11:23,840 Speaker 1: It's just the reality of the world. We're in Joe, 198 00:11:24,080 --> 00:11:26,040 Speaker 1: that does seem to be where we are. We're living 199 00:11:26,080 --> 00:11:27,520 Speaker 1: with it. You know, a lot of people are going 200 00:11:27,520 --> 00:11:29,679 Speaker 1: to work still through this stuff, and obviously a lot 201 00:11:29,720 --> 00:11:31,320 Speaker 1: of kids are going to school, and it does seem 202 00:11:31,360 --> 00:11:35,040 Speaker 1: like if we get through this variant, people get vaccinated, 203 00:11:35,480 --> 00:11:37,640 Speaker 1: they deal with the masking, whatever they have to do. 204 00:11:37,720 --> 00:11:40,720 Speaker 1: They're living with it and working through it. And Congressman, 205 00:11:40,720 --> 00:11:43,960 Speaker 1: I appreciate your insights. Congressman Frank Lucas, Republican from Oklahoma, 206 00:11:44,000 --> 00:11:46,959 Speaker 1: come back and see us. You're on Bloomberg Radio. We'll 207 00:11:47,000 --> 00:11:48,760 Speaker 1: be listening for him tomorrow. In fact, I'll try to 208 00:11:48,760 --> 00:11:52,800 Speaker 1: make a point of doing that here bringing some of 209 00:11:52,800 --> 00:11:57,079 Speaker 1: the questions that he's asking j Powell and Janet Yellen tomorrow. 210 00:11:57,480 --> 00:11:59,959 Speaker 1: So thank you for being with us on Bloomberg Radio. 211 00:12:00,040 --> 00:12:04,240 Speaker 1: As we digest his comments and remarks, we're going together 212 00:12:04,640 --> 00:12:15,440 Speaker 1: back to that scary place we call the unknown, you 213 00:12:15,480 --> 00:12:23,040 Speaker 1: know what I'm talking about, Yes, into the and there's 214 00:12:23,080 --> 00:12:27,800 Speaker 1: only one panel for that. With apologies to the fans 215 00:12:27,840 --> 00:12:31,640 Speaker 1: of Frozen. Two, Rick and Genie with us on sound 216 00:12:31,679 --> 00:12:36,040 Speaker 1: on next. I'm Joe Matthew. This is Bloomberg. You're listening 217 00:12:36,120 --> 00:12:42,079 Speaker 1: to Bloomberg you sound on with Joe Matthew on Bloomberg Radio. 218 00:12:42,760 --> 00:12:46,000 Speaker 1: But can they make news twice? How old and yelling? 219 00:12:46,080 --> 00:12:48,760 Speaker 1: They testify around two tomorrow as we were discussing, and 220 00:12:49,760 --> 00:12:51,760 Speaker 1: I don't know if you sat through all three episodes 221 00:12:51,840 --> 00:12:54,280 Speaker 1: of the New Beatles documentary last weekend, you have no 222 00:12:54,400 --> 00:12:56,800 Speaker 1: excuse but to listen to the hearing in real time 223 00:12:56,840 --> 00:13:00,520 Speaker 1: tomorrow to find out. We'll have it for you on Bloomberg. 224 00:13:00,559 --> 00:13:02,400 Speaker 1: Of course, I do want to hear from the panel 225 00:13:02,440 --> 00:13:04,520 Speaker 1: on this, among some of the other headlines we discussed 226 00:13:04,960 --> 00:13:09,000 Speaker 1: with Congressman Lucas. Bloomberg Politics contributors Jeanie Chanzano and Rick 227 00:13:09,080 --> 00:13:12,480 Speaker 1: Davis are here, and Genie we've discussed more than once 228 00:13:12,520 --> 00:13:19,200 Speaker 1: transitory as a poor choice of words, if not something untrue. 229 00:13:19,400 --> 00:13:22,920 Speaker 1: I guess the FED chair has finally caught on here. 230 00:13:23,720 --> 00:13:26,880 Speaker 1: Should you have put that to rest earlier? He should 231 00:13:26,880 --> 00:13:30,480 Speaker 1: have been a great news. Transitory is now out of fashion, 232 00:13:30,880 --> 00:13:33,600 Speaker 1: so it is being retired, according to the FED chair, 233 00:13:33,920 --> 00:13:36,640 Speaker 1: and they should have retired it a long time ago. 234 00:13:36,840 --> 00:13:40,000 Speaker 1: He was right to make that case in just from 235 00:13:40,040 --> 00:13:44,800 Speaker 1: a political perspective. It is important because, of course, it 236 00:13:44,880 --> 00:13:49,080 Speaker 1: doesn't feel transitory to Americans who are experiencing this pain, 237 00:13:49,400 --> 00:13:52,400 Speaker 1: and so it never made sense from a political perspective. 238 00:13:52,720 --> 00:13:54,800 Speaker 1: And I think we're starting to see that come through 239 00:13:54,840 --> 00:13:57,400 Speaker 1: in his testimony today, Rick Davis, how much of a 240 00:13:57,440 --> 00:14:00,800 Speaker 1: calculation goes into a hearing like this by the newsmakers? 241 00:14:00,840 --> 00:14:03,040 Speaker 1: I know the lawmakers are well rehearsed, they're all film 242 00:14:03,120 --> 00:14:05,160 Speaker 1: and you know, commercials while they're up there. But when 243 00:14:05,200 --> 00:14:10,199 Speaker 1: you're J. Powell, how carefully choreographed is that that telegraphing 244 00:14:10,240 --> 00:14:11,600 Speaker 1: as we like to call it, in a in a 245 00:14:11,640 --> 00:14:15,120 Speaker 1: hearing like this? Oh, I think every word has parsed 246 00:14:15,240 --> 00:14:18,600 Speaker 1: for what its potential impact is on not only the 247 00:14:18,679 --> 00:14:21,640 Speaker 1: US market, but global markets. I mean that may be 248 00:14:21,880 --> 00:14:26,400 Speaker 1: the most nuanced testimony of anyone who goes in front 249 00:14:26,440 --> 00:14:29,080 Speaker 1: of Congress is the role of the Chairman of the Fed. 250 00:14:29,320 --> 00:14:32,200 Speaker 1: And uh and I have no doubt that this was 251 00:14:32,320 --> 00:14:37,040 Speaker 1: a major decision, you know, within his operation to you know, 252 00:14:37,080 --> 00:14:43,120 Speaker 1: sort of walk back on the mentioned that inflation was transitory. 253 00:14:43,200 --> 00:14:46,680 Speaker 1: And uh. We we saw it almost as as a 254 00:14:46,680 --> 00:14:49,600 Speaker 1: as a colloquy between he and the members of Congress 255 00:14:50,080 --> 00:14:52,080 Speaker 1: as to how they were teeing it up so that 256 00:14:52,120 --> 00:14:54,400 Speaker 1: he could walk it back. And I have no doubt 257 00:14:54,440 --> 00:14:58,400 Speaker 1: that from back channels that was all orchestrated. It's just 258 00:14:58,960 --> 00:15:01,520 Speaker 1: it's just he knew it was coming. Um. I'm sure 259 00:15:01,560 --> 00:15:04,320 Speaker 1: the Democrats had been all over this on the hill 260 00:15:04,360 --> 00:15:06,800 Speaker 1: saying we've got to get a different message out of 261 00:15:06,800 --> 00:15:09,720 Speaker 1: the feed on this because not only has it lasted 262 00:15:09,760 --> 00:15:13,480 Speaker 1: longer than um, I think the chairman had thought, uh 263 00:15:13,800 --> 00:15:18,640 Speaker 1: uh you know, uh Congressman you interviewed earlier, said it, right, 264 00:15:18,680 --> 00:15:21,600 Speaker 1: I mean, this has gone too long to be called transient. 265 00:15:21,720 --> 00:15:22,960 Speaker 1: And and at the end of the day, I mean 266 00:15:23,000 --> 00:15:25,000 Speaker 1: it since just as as Jennie was saying a horrible 267 00:15:25,040 --> 00:15:28,240 Speaker 1: message to voters that you know, I just grinn em Barratt, 268 00:15:28,320 --> 00:15:29,800 Speaker 1: this can't be that hard. It's going to go away 269 00:15:29,800 --> 00:15:32,840 Speaker 1: in a little while, right, And it's and and and 270 00:15:32,880 --> 00:15:35,920 Speaker 1: if anything, that is where the rub has been for 271 00:15:36,120 --> 00:15:39,480 Speaker 1: the Biden administration and his his image with the public. 272 00:15:39,960 --> 00:15:41,880 Speaker 1: But did he do it well, Jennie. The dow still 273 00:15:41,920 --> 00:15:46,360 Speaker 1: fell six fifty points after that careful choreography. Yeah, there 274 00:15:46,480 --> 00:15:48,920 Speaker 1: is that portion of it. You know. One thing I 275 00:15:49,000 --> 00:15:52,160 Speaker 1: would point to that I thought was fascinating was that 276 00:15:52,240 --> 00:15:56,440 Speaker 1: you have Democrats like Shared Brown, who are you know, 277 00:15:56,880 --> 00:16:00,760 Speaker 1: not happy with some of the messaging here. They are very, 278 00:16:00,880 --> 00:16:05,040 Speaker 1: very concerned and shared. Brown has said this right, you 279 00:16:05,160 --> 00:16:07,760 Speaker 1: don't want them to pump the brakes, he said on 280 00:16:07,800 --> 00:16:12,320 Speaker 1: the economic recovery before workers get a chance to fully rebound. 281 00:16:12,720 --> 00:16:15,160 Speaker 1: And so that is a message I think that the 282 00:16:15,240 --> 00:16:20,400 Speaker 1: more liberal progressive perhaps members of the Democratic Party who 283 00:16:20,440 --> 00:16:23,880 Speaker 1: are looking I think it's fascinating at the chairman and 284 00:16:24,880 --> 00:16:28,920 Speaker 1: nominated again um and looking at this message, perhaps not 285 00:16:29,040 --> 00:16:32,280 Speaker 1: as welcoming of it as some of the other members 286 00:16:32,280 --> 00:16:35,120 Speaker 1: of Congress. I asked the congressman as well about the 287 00:16:35,160 --> 00:16:37,880 Speaker 1: debt ceiling, and he jumped right to the fact that 288 00:16:37,880 --> 00:16:41,240 Speaker 1: that he believes that the US will not default because 289 00:16:41,320 --> 00:16:45,080 Speaker 1: Democrats need to handle this now they're in the majority. Uh. 290 00:16:45,280 --> 00:16:48,000 Speaker 1: Interesting remarks today. I want to hear from both leaders 291 00:16:48,080 --> 00:16:50,600 Speaker 1: in the Senate. It's first Mitch McConnell and then we'll 292 00:16:50,600 --> 00:16:52,640 Speaker 1: hear from Chuck Schumer. But listen to the way this 293 00:16:52,720 --> 00:16:55,920 Speaker 1: has evolved as we approach what appears to be a 294 00:16:55,920 --> 00:16:57,880 Speaker 1: deadline now in the debt ceiling in the next month 295 00:16:58,000 --> 00:17:00,840 Speaker 1: roughly or so. CBO says could be by the of 296 00:17:00,920 --> 00:17:04,080 Speaker 1: December that the Treasury runs out of money. Here's Mitch McConnell, Yeah, 297 00:17:04,119 --> 00:17:05,960 Speaker 1: first one, and let me assure everyone in the government 298 00:17:05,960 --> 00:17:09,400 Speaker 1: will not default as it never has. And second, Um 299 00:17:09,600 --> 00:17:12,359 Speaker 1: Majority Leader and I have been having discussions about the 300 00:17:12,359 --> 00:17:17,480 Speaker 1: way forward, okay, across the aisle and also briefing reporters 301 00:17:17,520 --> 00:17:21,640 Speaker 1: today Senator Chuck Schumer. Look, I think that First Leader 302 00:17:21,720 --> 00:17:24,480 Speaker 1: McConnell and I are having good conversations on this. I'm 303 00:17:24,480 --> 00:17:26,640 Speaker 1: not going to get in details. We have not come 304 00:17:26,680 --> 00:17:28,840 Speaker 1: to an agreement. Anyone who says there is an agreement 305 00:17:28,960 --> 00:17:32,160 Speaker 1: is not correct. But I think that what we need 306 00:17:32,240 --> 00:17:35,440 Speaker 1: to do is come up with an agreement that doesn't 307 00:17:35,520 --> 00:17:38,199 Speaker 1: risk the full faith and credit of the United States. 308 00:17:38,200 --> 00:17:40,560 Speaker 1: It's never been risked before in a way that both 309 00:17:40,600 --> 00:17:43,520 Speaker 1: parties can support. Okay, So everyone's having meetings now and 310 00:17:43,560 --> 00:17:45,959 Speaker 1: talking about stuff. Rick Davis, what's going on here at 311 00:17:45,960 --> 00:17:49,560 Speaker 1: Brown this time? In the last approach of the debt sailing, 312 00:17:49,600 --> 00:17:53,600 Speaker 1: Mitch McConnell was being very vocal about his his opposition 313 00:17:53,920 --> 00:17:56,160 Speaker 1: to getting involved here. He said, no way. Now, we're 314 00:17:56,160 --> 00:17:59,359 Speaker 1: all kind of hanging out and talking. Yeah, this is 315 00:17:59,400 --> 00:18:01,640 Speaker 1: a class. The old dog did learn a few new 316 00:18:01,680 --> 00:18:04,960 Speaker 1: tricks in the last couple of months. Um, you know, uh, 317 00:18:05,080 --> 00:18:08,560 Speaker 1: Minority Leader McConnell clearly got out too far on the 318 00:18:08,600 --> 00:18:10,360 Speaker 1: limb and said that you know, he wasn't gonna lift 319 00:18:10,359 --> 00:18:12,720 Speaker 1: a finger for these Democrats, and then he did exactly 320 00:18:12,760 --> 00:18:14,639 Speaker 1: what he said he wasn't gonna do. He lifted a finger, 321 00:18:14,920 --> 00:18:16,800 Speaker 1: didn't do much more than that, but he allowed this 322 00:18:17,320 --> 00:18:20,840 Speaker 1: debt limit to be kicked until December. We can debate 323 00:18:20,880 --> 00:18:23,240 Speaker 1: all days, so you know when when when the lights 324 00:18:23,240 --> 00:18:26,400 Speaker 1: get turned off. But at the bottom line is this 325 00:18:26,440 --> 00:18:29,920 Speaker 1: is a completely different approach where you know, he has 326 00:18:29,920 --> 00:18:32,800 Speaker 1: said for a little over the week of ten days 327 00:18:32,880 --> 00:18:37,119 Speaker 1: that he's working with Majority Leader Schumer to to iron 328 00:18:37,160 --> 00:18:39,800 Speaker 1: this out and that unequivocally he will not allow the 329 00:18:39,840 --> 00:18:45,080 Speaker 1: debt limit uh to uh to to to expire. So um, 330 00:18:45,119 --> 00:18:48,080 Speaker 1: it should be reassuring to everyone that for a change, 331 00:18:48,200 --> 00:18:51,840 Speaker 1: there is a draconian political statement being made around something 332 00:18:51,880 --> 00:18:54,240 Speaker 1: as important as the debt limit. Maybe they'll figure this 333 00:18:54,320 --> 00:18:57,320 Speaker 1: out and we won't have to do the cliff thing again. 334 00:18:57,560 --> 00:18:59,919 Speaker 1: We want to focus for a moment on the defense 335 00:19:00,080 --> 00:19:02,800 Speaker 1: spending bill, the n d A A that has been 336 00:19:02,840 --> 00:19:07,080 Speaker 1: stalled in the Senate now for weeks, nearly eight hundred 337 00:19:07,119 --> 00:19:09,320 Speaker 1: billion dollars, but it never gets the attention or the 338 00:19:09,359 --> 00:19:15,040 Speaker 1: publicity the coverage of other more controversial legislation. I guess 339 00:19:15,040 --> 00:19:18,320 Speaker 1: maybe that's because it's usually not at risk. So let's 340 00:19:18,320 --> 00:19:21,560 Speaker 1: talk about the stakes here. A night after we had 341 00:19:21,600 --> 00:19:26,280 Speaker 1: some trouble, as I read from Bloomberg Government and a 342 00:19:26,320 --> 00:19:28,479 Speaker 1: great piece here, really News, the article that I suggest 343 00:19:28,520 --> 00:19:30,480 Speaker 1: you check out on the terminal. The vote to cut 344 00:19:30,480 --> 00:19:35,680 Speaker 1: off debate failed forty five to fifty one as Republican 345 00:19:35,720 --> 00:19:40,040 Speaker 1: senators demanded consideration of more amendments to the annual Pentagon 346 00:19:40,200 --> 00:19:44,320 Speaker 1: Policy Measure. Senate Minority Leader Mitch McConnell was asked about 347 00:19:44,359 --> 00:19:46,440 Speaker 1: this today, as you would expect when he faced reporters. 348 00:19:46,440 --> 00:19:49,159 Speaker 1: Here's what he said. The dilemma we have on the 349 00:19:49,200 --> 00:19:51,640 Speaker 1: floor at the moment with regard to the NDI A 350 00:19:51,640 --> 00:19:56,399 Speaker 1: A which has passed every year for sixties straight years, 351 00:19:57,440 --> 00:20:00,920 Speaker 1: is the majority leader has been reluctant to enter into 352 00:20:01,000 --> 00:20:04,639 Speaker 1: an agreement for a reasonable number of amendments related to 353 00:20:04,680 --> 00:20:09,040 Speaker 1: the subject. This is still being discussed and I'm hoping 354 00:20:09,080 --> 00:20:13,440 Speaker 1: we'll find a way forward, but really, this is must 355 00:20:13,440 --> 00:20:17,359 Speaker 1: pass legislation, So what's going on here? If it's a 356 00:20:17,440 --> 00:20:20,520 Speaker 1: must pass, this needs to get done, obviously, and we're 357 00:20:20,600 --> 00:20:23,720 Speaker 1: joined to talk about it. By an authority. As I mentioned, 358 00:20:23,720 --> 00:20:26,359 Speaker 1: General Mark Kimmittt is with US retired Brigadier general, former 359 00:20:26,400 --> 00:20:31,639 Speaker 1: Assistant Secretary of State for Political Military Affairs. Do we 360 00:20:31,680 --> 00:20:33,800 Speaker 1: have a problem here, General, or does this work itself 361 00:20:33,800 --> 00:20:36,159 Speaker 1: out before the end of the year. Oh, Joe, this 362 00:20:36,240 --> 00:20:39,960 Speaker 1: is all politics. I would expect this to pass UH 363 00:20:40,160 --> 00:20:44,439 Speaker 1: next week. This is like the bills to pass the 364 00:20:44,520 --> 00:20:46,760 Speaker 1: National Park Service. And if they don't get it, they're 365 00:20:46,760 --> 00:20:49,840 Speaker 1: going to close down the Washington Monument. Of course they're 366 00:20:49,880 --> 00:20:51,600 Speaker 1: going to pass it. What are we gonna do? Look, 367 00:20:51,640 --> 00:20:54,639 Speaker 1: the aircraft carriers are not of gas. Let our troops 368 00:20:54,680 --> 00:20:58,040 Speaker 1: not be paid. So this is just part of the 369 00:20:58,080 --> 00:21:01,560 Speaker 1: game that goes on every time around here. And UH, 370 00:21:01,800 --> 00:21:04,640 Speaker 1: I wouldn't waste my time worrying about it too much. 371 00:21:05,200 --> 00:21:06,800 Speaker 1: So how come it comes down to the line. There 372 00:21:06,840 --> 00:21:10,520 Speaker 1: are some amendments apparently Republican senators are pushing to consider, 373 00:21:11,000 --> 00:21:15,199 Speaker 1: including more sanctions on the Nord Stream to pipeline. Is 374 00:21:15,240 --> 00:21:17,680 Speaker 1: it worth bringing this close to the deadline? Or you're 375 00:21:17,720 --> 00:21:21,679 Speaker 1: not bothered as a military man who knows those resources 376 00:21:21,720 --> 00:21:25,320 Speaker 1: are needed, well, the resources will be UH will be 377 00:21:25,440 --> 00:21:28,320 Speaker 1: given to us by the government. Nobody is going to 378 00:21:28,400 --> 00:21:31,720 Speaker 1: stand up in front of their their congressional district, or 379 00:21:31,760 --> 00:21:33,520 Speaker 1: their state, and so that I cut off money for 380 00:21:33,600 --> 00:21:36,200 Speaker 1: our troops. So this is again, this is just the 381 00:21:36,280 --> 00:21:39,440 Speaker 1: kabuki dance that goes on every time about this time 382 00:21:39,480 --> 00:21:42,120 Speaker 1: of year and makes a lot of wave, a lot 383 00:21:42,160 --> 00:21:44,600 Speaker 1: of noise, a lot of heat, But it doesn't really 384 00:21:44,640 --> 00:21:47,119 Speaker 1: account for anything. Is there enough in the bill general? 385 00:21:47,119 --> 00:21:51,080 Speaker 1: There was some debate between Republicans and Democrats over tens 386 00:21:51,080 --> 00:21:54,440 Speaker 1: of billions of dollars in funding. Well, look, this is 387 00:21:54,480 --> 00:21:57,520 Speaker 1: an eight hundred billion dollar defense budget. It's the largest 388 00:21:57,560 --> 00:22:00,960 Speaker 1: defense budget in the world. There be enough for us 389 00:22:01,040 --> 00:22:04,640 Speaker 1: to do our mission, There's no doubt about it. Even 390 00:22:04,680 --> 00:22:07,199 Speaker 1: if ten ten billion here, ten billion. There is not 391 00:22:07,280 --> 00:22:10,120 Speaker 1: a lot of money inside the defense budget. There are 392 00:22:10,160 --> 00:22:14,359 Speaker 1: critical issues, primarily for future procurement that always seem to 393 00:22:14,400 --> 00:22:16,920 Speaker 1: be cut off at the last minute. But in terms 394 00:22:16,920 --> 00:22:19,600 Speaker 1: of paying our troops, in terms of conducting our operations, 395 00:22:19,720 --> 00:22:23,560 Speaker 1: there will be enough money for that. Yout five comes 396 00:22:23,640 --> 00:22:27,040 Speaker 1: up a lot, always does. Do we need to keep 397 00:22:27,040 --> 00:22:30,359 Speaker 1: paying for this massive program? This thing is worth almost 398 00:22:30,440 --> 00:22:32,680 Speaker 1: as much as some of the social spending plans we've 399 00:22:32,680 --> 00:22:35,080 Speaker 1: been talking about. Well, it depends to ask an Air 400 00:22:35,119 --> 00:22:36,959 Speaker 1: Force guy or an army guy. You know, I'm an 401 00:22:37,040 --> 00:22:39,680 Speaker 1: army guy, and uh, I would say that the money 402 00:22:39,680 --> 00:22:41,840 Speaker 1: that goes into the F thirty five could certainly be 403 00:22:41,960 --> 00:22:46,520 Speaker 1: used for army programs, are for the matter, navy programs. 404 00:22:46,880 --> 00:22:50,960 Speaker 1: We do need to maintain air superiority. Uh, there's always 405 00:22:50,960 --> 00:22:53,639 Speaker 1: a question about these types of procurement programs, like the 406 00:22:53,720 --> 00:22:57,040 Speaker 1: F thirty five. You'll always see the cost overruns. It 407 00:22:57,080 --> 00:22:59,800 Speaker 1: will always seem be built at the very time when 408 00:22:59,800 --> 00:23:04,280 Speaker 1: the technology is in many ways second generation. So there 409 00:23:04,359 --> 00:23:08,080 Speaker 1: is a reasonable argument for the F thirty five. But 410 00:23:08,680 --> 00:23:12,080 Speaker 1: like everything else, the size of that program is such 411 00:23:12,160 --> 00:23:15,359 Speaker 1: that it's always going to invite debate and it's always 412 00:23:15,400 --> 00:23:18,080 Speaker 1: going to invite disagreement. Well, it also has to invite 413 00:23:18,080 --> 00:23:22,959 Speaker 1: a conversation about who who we're preparing to face off against? Right, 414 00:23:23,040 --> 00:23:27,040 Speaker 1: is the F thirty five about China? And if it's not, 415 00:23:27,200 --> 00:23:32,440 Speaker 1: who are we preparing to go to war with hopefully avoiding? Uh. Look, 416 00:23:32,480 --> 00:23:34,879 Speaker 1: the thirty five has been in development for years and years. 417 00:23:35,000 --> 00:23:38,480 Speaker 1: It is not tailored for one specific threat like China, 418 00:23:38,920 --> 00:23:41,879 Speaker 1: and it's not tailored for one specific time period like 419 00:23:41,960 --> 00:23:46,840 Speaker 1: the next ten years. We want a capabilities based military, 420 00:23:47,320 --> 00:23:51,440 Speaker 1: one that has enough capabilities to handle any threat. If 421 00:23:51,480 --> 00:23:54,119 Speaker 1: we were building a threat based force, of course we 422 00:23:54,119 --> 00:23:57,359 Speaker 1: would build it against China. But we don't have that 423 00:23:57,480 --> 00:23:59,320 Speaker 1: luxury of knowing who our enemies are going to be 424 00:23:59,320 --> 00:24:02,560 Speaker 1: in ten years. So we've got to build a capability 425 00:24:02,640 --> 00:24:05,200 Speaker 1: that can address any of a number of conflicts around 426 00:24:05,200 --> 00:24:07,720 Speaker 1: the year, around the world. General Mark Kimmitt, we spent 427 00:24:07,800 --> 00:24:11,360 Speaker 1: some time talking during the very messy withdrawal from Afghanistan. 428 00:24:12,359 --> 00:24:16,800 Speaker 1: How has that process impacted or should impact the final 429 00:24:16,880 --> 00:24:20,920 Speaker 1: product in this bill? Here goods we don't need, for instance, equipment, 430 00:24:20,960 --> 00:24:24,080 Speaker 1: we may not need missions that we're not pursuing any longer. 431 00:24:24,359 --> 00:24:28,480 Speaker 1: Did the conversation change because of the end of that war, Well, 432 00:24:28,520 --> 00:24:30,840 Speaker 1: I really don't think so. Now that freed up some 433 00:24:30,960 --> 00:24:36,439 Speaker 1: financial resources. Um, but the US military for years and 434 00:24:36,520 --> 00:24:40,359 Speaker 1: years had been looking beyond Afghanistan, looking beyond wreck and 435 00:24:40,440 --> 00:24:44,199 Speaker 1: focused on near peer and peer competitors like China. Just 436 00:24:44,280 --> 00:24:47,359 Speaker 1: because we ended the war in Afghanistan didn't mean we 437 00:24:47,359 --> 00:24:50,160 Speaker 1: woke up the next day and started focusing on China. 438 00:24:50,480 --> 00:24:52,520 Speaker 1: Your military is pretty good at this kind of stuff. 439 00:24:52,560 --> 00:24:54,520 Speaker 1: It can it can juggle a couple of balls at 440 00:24:54,520 --> 00:24:58,159 Speaker 1: the same time. So the end of the war in Afghanistan. 441 00:24:58,640 --> 00:25:02,160 Speaker 1: Didn't really change the force structure, nor did it change 442 00:25:02,160 --> 00:25:05,440 Speaker 1: our mission set, nor did it change where we're focused 443 00:25:05,440 --> 00:25:07,119 Speaker 1: on in the next five or ten years. Is it 444 00:25:07,200 --> 00:25:09,679 Speaker 1: time to get rid of this repeal the authorization for 445 00:25:09,840 --> 00:25:13,359 Speaker 1: use of military force? Oh, that's a different story entirely, 446 00:25:13,400 --> 00:25:15,679 Speaker 1: and I could debate that for years and years. I 447 00:25:15,720 --> 00:25:18,680 Speaker 1: certainly want to make sure that that the president has 448 00:25:18,800 --> 00:25:23,360 Speaker 1: the ability at any time of his choosing to address 449 00:25:23,400 --> 00:25:27,000 Speaker 1: the terrorist threat. But time to write a new one? Uh, 450 00:25:27,200 --> 00:25:30,600 Speaker 1: I'd stick with the old one. General Mark Kimmitt always 451 00:25:30,600 --> 00:25:33,320 Speaker 1: a straight answer. Glad you could be with us former 452 00:25:33,320 --> 00:25:36,480 Speaker 1: Assistant Secretary for State of State, I should say for 453 00:25:36,480 --> 00:25:39,840 Speaker 1: political military affairs. And in a fascinating unique take here 454 00:25:40,520 --> 00:25:43,640 Speaker 1: on a story that doesn't get nearly enough attention. You're 455 00:25:43,680 --> 00:25:47,760 Speaker 1: listening to Bloomberg. You sound on with Joe Matthew on 456 00:25:47,920 --> 00:25:54,040 Speaker 1: Bloomberg Radio. Yeah, Jake Howell retiring the word transitory big 457 00:25:54,080 --> 00:25:58,000 Speaker 1: headline today got me thinking what other word should the 458 00:25:58,000 --> 00:26:01,159 Speaker 1: Biden administration retire in the new year. Could be a 459 00:26:01,160 --> 00:26:05,399 Speaker 1: lot of them, maybe literally. I think last year was 460 00:26:05,480 --> 00:26:09,280 Speaker 1: cofefe we got rid of, right, So President Biden left 461 00:26:09,280 --> 00:26:11,880 Speaker 1: the bubble today even with all the swirling stories we've 462 00:26:11,920 --> 00:26:15,560 Speaker 1: been talking about around the taper, inflation, the debt ceiling. 463 00:26:15,600 --> 00:26:18,960 Speaker 1: Pick one will go with it, Air Force one to 464 00:26:19,200 --> 00:26:24,960 Speaker 1: rose Mount, Minnesota, even with the new variant and everything 465 00:26:25,000 --> 00:26:29,560 Speaker 1: else out there. The traveling salesman is back to publicize 466 00:26:29,560 --> 00:26:33,560 Speaker 1: the new infrastructure law and to make the case for 467 00:26:33,640 --> 00:26:37,840 Speaker 1: the social spending agenda. And then we find the headline 468 00:26:37,960 --> 00:26:40,520 Speaker 1: one of the first I read this morning, Mansion holds 469 00:26:40,560 --> 00:26:46,280 Speaker 1: off on committing to moving Biden agenda this year. And 470 00:26:46,359 --> 00:26:50,480 Speaker 1: we've got the panel back Bloomberg Politics contributors Jeanie Shenzano 471 00:26:50,600 --> 00:26:54,679 Speaker 1: and Rick Davis Rick, this is really groundhog day. But 472 00:26:54,720 --> 00:26:56,640 Speaker 1: when you hear Chuck Schumer say he wants to get 473 00:26:56,640 --> 00:26:59,400 Speaker 1: this done by Christmas, and Joe Mansion immediately tells reporters 474 00:26:59,440 --> 00:27:02,280 Speaker 1: that he's not on board with the timeline. With what 475 00:27:02,320 --> 00:27:05,720 Speaker 1: we know, the little we know about this virus now looming, 476 00:27:07,080 --> 00:27:10,880 Speaker 1: are we are we adjusting odds for the President's plan 477 00:27:11,000 --> 00:27:15,760 Speaker 1: to pass? Uh? You know, Joe, I think we've come 478 00:27:15,760 --> 00:27:19,200 Speaker 1: to the conclusion, especially in today's segment covering so many 479 00:27:19,240 --> 00:27:22,200 Speaker 1: controversies within the United States Senate, that the level of 480 00:27:22,280 --> 00:27:25,800 Speaker 1: dysfunction within the Senate is increasing every day. Why in 481 00:27:25,840 --> 00:27:29,080 Speaker 1: the world would the majority leader take a position that 482 00:27:29,119 --> 00:27:32,119 Speaker 1: he's going to pass this before Christmas without actually checking 483 00:27:32,119 --> 00:27:34,560 Speaker 1: in with the one guy who is the determining factor 484 00:27:34,600 --> 00:27:37,360 Speaker 1: on that, Joe Mansion. So you know, that goes out 485 00:27:37,359 --> 00:27:39,280 Speaker 1: publicly and Mansion knocks it down. I mean, it just 486 00:27:39,320 --> 00:27:43,600 Speaker 1: shows how level of disorganization and lack of communication exists there. 487 00:27:43,800 --> 00:27:47,040 Speaker 1: Does it sound like a body that's gonna ever pass anything? Right? Well, 488 00:27:47,119 --> 00:27:49,840 Speaker 1: you know, they've actually been really successful this year getting 489 00:27:49,840 --> 00:27:52,439 Speaker 1: things done. I mean today we've pointed to all the 490 00:27:52,480 --> 00:27:54,480 Speaker 1: things that they still have on their plate, and it's 491 00:27:54,520 --> 00:27:57,199 Speaker 1: going to be a wild and wooly December if they 492 00:27:57,240 --> 00:27:59,720 Speaker 1: expect to hit the mark on all this stuff. But look, 493 00:28:00,040 --> 00:28:02,840 Speaker 1: we've always suspected that there may be a problem getting 494 00:28:02,840 --> 00:28:05,680 Speaker 1: Bill back better pass at all, right, I mean, Joe 495 00:28:05,720 --> 00:28:09,480 Speaker 1: Mansion's got concerns. Um Bernie Sanders has concerns with a 496 00:28:09,560 --> 00:28:12,760 Speaker 1: House pass version. He isn't happy with what what came 497 00:28:12,800 --> 00:28:15,280 Speaker 1: to them from the House. And of course the wild card. 498 00:28:15,359 --> 00:28:18,399 Speaker 1: Christen Cinema, she hasn't talked as much as those guys do, 499 00:28:18,480 --> 00:28:20,399 Speaker 1: but you know she's certainly got a vote, and her 500 00:28:20,480 --> 00:28:22,679 Speaker 1: vote matters in this case, and she hasn't been willing 501 00:28:22,720 --> 00:28:26,040 Speaker 1: to uh stake a position. It says that that she's 502 00:28:26,080 --> 00:28:29,080 Speaker 1: ready to move forward before Christmas, So I guess there's 503 00:28:29,119 --> 00:28:31,880 Speaker 1: always mismatch. You point back to the memo, I think 504 00:28:31,960 --> 00:28:34,240 Speaker 1: very appropriately, if you go back and read the memo, 505 00:28:34,560 --> 00:28:39,959 Speaker 1: there really should be no surprises. Is this included. Absolutely, 506 00:28:40,120 --> 00:28:42,720 Speaker 1: this is exactly what we've been talking about since July. 507 00:28:43,200 --> 00:28:46,520 Speaker 1: I mean, this is not a shock. Uh. Joe Manchins 508 00:28:46,560 --> 00:28:49,280 Speaker 1: staked out turf that was very specific and very clear, 509 00:28:49,680 --> 00:28:51,680 Speaker 1: and his terms have not been met either on the 510 00:28:51,760 --> 00:28:54,160 Speaker 1: overall number which actually went up in the House, not 511 00:28:54,360 --> 00:28:57,320 Speaker 1: down to where he wanted it. Uh. And the policies 512 00:28:57,360 --> 00:28:59,440 Speaker 1: that he said he would not vote for are in 513 00:28:59,440 --> 00:29:02,760 Speaker 1: that bill. So the House basically said, we're blowing you 514 00:29:02,840 --> 00:29:05,320 Speaker 1: off and sending you what we like. Let the Senate 515 00:29:05,360 --> 00:29:09,080 Speaker 1: do their work. And now, unfortunately Mitch McConnell and and 516 00:29:09,280 --> 00:29:13,080 Speaker 1: not miss McConnell, the Majority leader, Chuck Schumer, has absolutely 517 00:29:13,120 --> 00:29:18,560 Speaker 1: no ability seemingly to move um either towards mansion or 518 00:29:18,600 --> 00:29:21,520 Speaker 1: mansion toward the legislation. Where are you on this genie? 519 00:29:21,560 --> 00:29:25,680 Speaker 1: Because a lot of people are rethinking, well, everything in 520 00:29:25,720 --> 00:29:28,800 Speaker 1: the last forty eight hours. If we're dealing with this 521 00:29:28,840 --> 00:29:33,760 Speaker 1: new COVID stream, lawmakers are arguing over how to fix 522 00:29:33,840 --> 00:29:36,960 Speaker 1: this debt ceiling issue that could suck up all the 523 00:29:37,000 --> 00:29:39,880 Speaker 1: oxygen and money out of the room between now and 524 00:29:39,960 --> 00:29:42,680 Speaker 1: the end of the year. Chuck Schumer's sitting on a 525 00:29:42,720 --> 00:29:47,480 Speaker 1: self imposed deadline to nowhere. Well, and I said yesterday 526 00:29:47,520 --> 00:29:51,200 Speaker 1: that I do think the new variant does change things 527 00:29:51,280 --> 00:29:55,000 Speaker 1: to a certain extent with the build back Better bill, um, 528 00:29:55,040 --> 00:29:58,440 Speaker 1: I think feeling more like that today, it does. I 529 00:29:58,600 --> 00:30:01,640 Speaker 1: you know, since I heard about it over Thanksgiving weekend, 530 00:30:01,760 --> 00:30:03,880 Speaker 1: it felt like it was going to be very hard 531 00:30:04,480 --> 00:30:08,360 Speaker 1: to move that forward by somebody like Joe Mansion, with 532 00:30:08,400 --> 00:30:12,640 Speaker 1: the concerns about inflation, and you know, we were just 533 00:30:12,720 --> 00:30:14,920 Speaker 1: talking about that, you were just talking about the n 534 00:30:15,000 --> 00:30:18,000 Speaker 1: d A A. And one of the things that you know, 535 00:30:18,120 --> 00:30:22,000 Speaker 1: Chuck Schumer is rightly frustrated by, is you've got Joe 536 00:30:22,040 --> 00:30:25,360 Speaker 1: Mansion in his own party making these statements, and you've 537 00:30:25,400 --> 00:30:30,240 Speaker 1: also got Senate Republicans under Mitch McConnell doing everything they 538 00:30:30,280 --> 00:30:33,240 Speaker 1: can to stall what should have been the easiest thing 539 00:30:33,320 --> 00:30:35,600 Speaker 1: for them to pass. I mean, there's no question Chuck 540 00:30:35,640 --> 00:30:38,880 Speaker 1: Schumer came back to Washington on Monday, all prepared to 541 00:30:38,920 --> 00:30:41,600 Speaker 1: move nd A through and then get to the debt ceiling, 542 00:30:41,640 --> 00:30:44,680 Speaker 1: the funding and maybe build back better. So he is 543 00:30:44,720 --> 00:30:48,280 Speaker 1: facing as you do in a Senate, He's facing pushback 544 00:30:48,600 --> 00:30:51,960 Speaker 1: obviously from the other side and from inside the House 545 00:30:52,040 --> 00:30:54,560 Speaker 1: his own party, and so to move that forward is 546 00:30:54,600 --> 00:30:56,400 Speaker 1: going to be very, very tough. And of course the 547 00:30:56,400 --> 00:30:59,040 Speaker 1: President did the right thing, get out of Dodge, get 548 00:30:59,040 --> 00:31:02,440 Speaker 1: to Minnesota and talk about the hard infrastructure bill that 549 00:31:02,480 --> 00:31:04,840 Speaker 1: you did pass. But was anyone listening. I mean, this 550 00:31:04,920 --> 00:31:07,360 Speaker 1: is a tough environment, you know, I'm sure, and locally 551 00:31:07,440 --> 00:31:09,240 Speaker 1: there was a big bunch of news, but I don't 552 00:31:09,240 --> 00:31:12,320 Speaker 1: know that anybody even carried that speech that. I don't 553 00:31:12,320 --> 00:31:14,480 Speaker 1: know that it was carried live. But we listened. Joe, 554 00:31:14,560 --> 00:31:18,440 Speaker 1: you listen if you got through all three episodes of 555 00:31:18,480 --> 00:31:21,240 Speaker 1: the Beatles, I'm telling you you have no excuse. Clearly 556 00:31:21,280 --> 00:31:24,720 Speaker 1: I did Rick give us your sense about the Defense 557 00:31:24,800 --> 00:31:27,440 Speaker 1: Authorization Bill. Is General Kimmitt right, there's nothing to see here. 558 00:31:29,000 --> 00:31:31,040 Speaker 1: There's nothing to see here, but it's sure is wacky. 559 00:31:31,080 --> 00:31:33,200 Speaker 1: I mean, this bill came out of the House in 560 00:31:33,280 --> 00:31:37,840 Speaker 1: September to the Senate. It's usually a routine matter to 561 00:31:38,080 --> 00:31:40,520 Speaker 1: schedule floor time and knockout the amendments. Are over a 562 00:31:40,560 --> 00:31:44,160 Speaker 1: thousand amendments with only fifty making into the manager's package, 563 00:31:44,520 --> 00:31:45,880 Speaker 1: which means there's a lot of people who had a 564 00:31:45,920 --> 00:31:47,320 Speaker 1: lot of things they wanted to do this bill that 565 00:31:47,320 --> 00:31:49,480 Speaker 1: they didn't get a chance to because remember this bill 566 00:31:49,520 --> 00:31:52,520 Speaker 1: has only been done by the committee, uh, the Senate 567 00:31:52,600 --> 00:31:55,520 Speaker 1: Armed Services Committee. If everybody else in the Senate would 568 00:31:55,520 --> 00:31:58,200 Speaker 1: like to you know, amend it, they get they get 569 00:31:58,200 --> 00:32:00,920 Speaker 1: a chance to do that. What is amazing to me 570 00:32:01,600 --> 00:32:03,880 Speaker 1: is a lot of the problems we have with all 571 00:32:03,920 --> 00:32:07,600 Speaker 1: these bills we've been talking about, including reconciliation, including that women, 572 00:32:07,640 --> 00:32:11,280 Speaker 1: including the budget, is that Schumer just refuses to schedule 573 00:32:11,320 --> 00:32:14,760 Speaker 1: floor time, including you know, getting all these nominees passed 574 00:32:14,800 --> 00:32:18,560 Speaker 1: through the Senate that Joe Biden needs or do his work. 575 00:32:18,720 --> 00:32:22,080 Speaker 1: So um, I know he's not a master the Senate 576 00:32:22,120 --> 00:32:26,880 Speaker 1: the way Mitch McConnell legislatively, you know, very adroid. But 577 00:32:26,880 --> 00:32:29,840 Speaker 1: but why they don't schedule time to actually knock out 578 00:32:29,920 --> 00:32:32,640 Speaker 1: these amendments and pass the n d A A um. 579 00:32:32,680 --> 00:32:35,800 Speaker 1: You know they took what's called Useka, the China competition, 580 00:32:35,840 --> 00:32:39,720 Speaker 1: built off of it before they got started in order 581 00:32:39,800 --> 00:32:41,480 Speaker 1: to make it easier to pass the n d A 582 00:32:41,480 --> 00:32:44,520 Speaker 1: A and Useeka's in conference and NDIA still waiting for voting. 583 00:32:44,560 --> 00:32:49,120 Speaker 1: The Senate m kind of an issue here or is 584 00:32:49,160 --> 00:32:52,560 Speaker 1: the leader just being disorganized? I think the leaders just 585 00:32:52,600 --> 00:32:55,640 Speaker 1: being disorganized. Everybody in the Senate wants to pass the 586 00:32:55,720 --> 00:32:57,680 Speaker 1: end A and all he's got to do is set 587 00:32:57,720 --> 00:33:00,520 Speaker 1: it down on the floor long enough to knocked down 588 00:33:00,560 --> 00:33:02,880 Speaker 1: these amendments and it will get ready to go. And 589 00:33:02,920 --> 00:33:07,800 Speaker 1: even the House Chairman of the hask Adam Smith has 590 00:33:07,840 --> 00:33:12,280 Speaker 1: said he's ready to like do ping pong uh conferencing 591 00:33:12,320 --> 00:33:14,160 Speaker 1: and just knock it out as soon as we can 592 00:33:14,200 --> 00:33:16,120 Speaker 1: so that we can get this done before Christmas. I'd 593 00:33:16,160 --> 00:33:19,000 Speaker 1: say the only thing worse than not passing an increase 594 00:33:19,000 --> 00:33:21,400 Speaker 1: in the debt limit is not given paychecks to a 595 00:33:21,400 --> 00:33:24,880 Speaker 1: bunch of people we issued guns too fair enough, Jeannie. 596 00:33:24,960 --> 00:33:27,280 Speaker 1: Last time you and I talked about this about it 597 00:33:27,400 --> 00:33:31,160 Speaker 1: growing mold was on Veterans Day. They get this done 598 00:33:31,160 --> 00:33:34,720 Speaker 1: the next week. I really hope that they do. I 599 00:33:34,760 --> 00:33:38,120 Speaker 1: think they should. Um. You know, I think we're seeing signs, 600 00:33:38,120 --> 00:33:41,600 Speaker 1: and we've seen many of them throughout this year, that 601 00:33:41,640 --> 00:33:45,360 Speaker 1: Mitch McConnell is having some difficulty. I mean, sorry, Chuck 602 00:33:45,400 --> 00:33:49,000 Speaker 1: Schumer is having some difficulty in his role as majority leader. 603 00:33:49,360 --> 00:33:51,800 Speaker 1: Rick made a great point the fact that he would 604 00:33:51,800 --> 00:33:55,360 Speaker 1: promise to pass the Build Back Better without talking to 605 00:33:55,520 --> 00:33:58,880 Speaker 1: the two people who matter most before he goes out 606 00:33:58,880 --> 00:34:02,080 Speaker 1: and makes that statement. You know, that is just the mark, 607 00:34:02,240 --> 00:34:04,160 Speaker 1: as is this issue of the n D A, a 608 00:34:04,400 --> 00:34:06,800 Speaker 1: of some of the stumbles he's been having. He's in 609 00:34:06,840 --> 00:34:10,640 Speaker 1: a it's a thankless task, there's no question, but he 610 00:34:10,800 --> 00:34:14,120 Speaker 1: has got to move this forward. You know, he thought 611 00:34:14,120 --> 00:34:15,840 Speaker 1: he was going to be able to do it easily. 612 00:34:16,320 --> 00:34:18,040 Speaker 1: He if he can't, he's got to get to the 613 00:34:18,080 --> 00:34:20,400 Speaker 1: floor and get these amendments moved. He can't give the 614 00:34:20,480 --> 00:34:24,400 Speaker 1: Republicans all of this time to be pushing back and 615 00:34:24,440 --> 00:34:27,319 Speaker 1: to waste the time that they desperately need on the 616 00:34:27,360 --> 00:34:30,600 Speaker 1: government funding, on the debt ceiling. You know, let's just 617 00:34:30,640 --> 00:34:33,320 Speaker 1: forget about Build Back Better for a moment. Let's not forget. 618 00:34:33,480 --> 00:34:38,279 Speaker 1: We don't even have key ambassadors in key countries that 619 00:34:38,360 --> 00:34:40,279 Speaker 1: need to be pushed through the Senate and passed. So 620 00:34:40,600 --> 00:34:43,520 Speaker 1: he's got a lot on his table. But this the 621 00:34:43,800 --> 00:34:46,120 Speaker 1: showing in the last several months has not been good. 622 00:34:46,360 --> 00:34:49,839 Speaker 1: A lot another headline that Joe Manchin made today that 623 00:34:49,960 --> 00:34:52,360 Speaker 1: didn't get too much news because he has said it before, 624 00:34:52,360 --> 00:34:56,960 Speaker 1: but reiterating that he supports considering the debt ceiling increased 625 00:34:56,960 --> 00:35:01,480 Speaker 1: through reconciliation does does that make that inevitable? Rick? Yeah, 626 00:35:01,480 --> 00:35:03,960 Speaker 1: it's a chip shot. Honestly, we've been talking about this 627 00:35:04,040 --> 00:35:07,680 Speaker 1: for months live the Democrats just don't do it. Um 628 00:35:07,800 --> 00:35:11,120 Speaker 1: is baffling. There's never been a good explanation as to 629 00:35:11,200 --> 00:35:15,279 Speaker 1: why they don't pursue the reconciliation vehicle, uh for the 630 00:35:15,360 --> 00:35:18,799 Speaker 1: debt increase, other than to complain about Mitch McConnell not 631 00:35:18,880 --> 00:35:23,160 Speaker 1: playing um, not playing cooperation with them. So UM, I 632 00:35:23,239 --> 00:35:25,320 Speaker 1: don't know how they think they're going to get this done. 633 00:35:25,320 --> 00:35:28,480 Speaker 1: The idea that you're gonna get all one senators to 634 00:35:28,680 --> 00:35:31,319 Speaker 1: unanimously consent to this pack, you know, to the debt 635 00:35:31,360 --> 00:35:35,040 Speaker 1: limit being brought to the floor, is too unrealistic. And 636 00:35:35,719 --> 00:35:38,759 Speaker 1: so I I think if McConnell's willing to say, hey, 637 00:35:38,920 --> 00:35:43,239 Speaker 1: I'll drop the voter rama requirements on conciliation bill, then 638 00:35:43,320 --> 00:35:45,920 Speaker 1: then they should stick it on reconciliation and move as 639 00:35:46,000 --> 00:35:48,800 Speaker 1: quickly as they can to the exit door. Last word, Genie, 640 00:35:48,840 --> 00:35:51,760 Speaker 1: is that good advice for Chuck Schumer, it is good advice. 641 00:35:51,800 --> 00:35:54,960 Speaker 1: We heard Janet Yellen what she said about this needing 642 00:35:54,960 --> 00:35:58,120 Speaker 1: to be done. She is absolutely right, and Democrats have 643 00:35:58,200 --> 00:36:01,440 Speaker 1: to stop assuming that they are getting political points by 644 00:36:01,440 --> 00:36:03,800 Speaker 1: pointing to the fact that the other guys are holding 645 00:36:03,840 --> 00:36:06,560 Speaker 1: things up. They're not getting any political points. Get this done, 646 00:36:06,560 --> 00:36:08,680 Speaker 1: put it behind them, and move on. It sounds like 647 00:36:08,719 --> 00:36:11,439 Speaker 1: you may be moving on from reconciliation though in terms 648 00:36:11,480 --> 00:36:14,920 Speaker 1: of the social spending agenda. Does build back better bleed 649 00:36:15,200 --> 00:36:17,440 Speaker 1: into the new year, Genie, it does bleed into the 650 00:36:17,480 --> 00:36:22,000 Speaker 1: new year. I love these straight answers today. This program 651 00:36:22,040 --> 00:36:24,239 Speaker 1: is like comfort food in the middle of winter, I 652 00:36:24,320 --> 00:36:27,880 Speaker 1: tell you, and that always comes back to our signature panel. 653 00:36:28,400 --> 00:36:31,520 Speaker 1: That's why we love these guys, Rick and Genie. Thanks 654 00:36:31,560 --> 00:36:34,120 Speaker 1: has ever, thanks to all of our guests, including General 655 00:36:34,160 --> 00:36:38,560 Speaker 1: Mark Kimmitt and the gentleman from Oklahoma, the rancher on 656 00:36:38,600 --> 00:36:39,880 Speaker 1: the House Financial Services