1 00:00:01,960 --> 00:00:06,240 Speaker 1: Live from our nation's capital. This is Bloomberg Sound On. 2 00:00:07,400 --> 00:00:09,920 Speaker 1: We want to get people back to work. We've got 3 00:00:09,920 --> 00:00:12,840 Speaker 1: to be hating the path leaks. It is up to 4 00:00:12,960 --> 00:00:15,120 Speaker 1: Congress to kind of set the rules of the road. 5 00:00:15,240 --> 00:00:18,680 Speaker 1: But you have to wonder what Facebook final objective Isn't 6 00:00:18,680 --> 00:00:23,400 Speaker 1: that Bloomberg sound on Politics, policy and perspective from DC's 7 00:00:23,480 --> 00:00:26,680 Speaker 1: top name. So they just simply reopen the economy and 8 00:00:26,760 --> 00:00:28,800 Speaker 1: returned everyone back to work, we would be I think 9 00:00:28,800 --> 00:00:32,240 Speaker 1: in a better situation. Today, Washington may squander it's best 10 00:00:32,360 --> 00:00:36,000 Speaker 1: chance to make long overdue investments in our infrastructure. Schloomberg 11 00:00:36,200 --> 00:00:41,680 Speaker 1: Sound On with Joe Matthew on Bloomberg Radio one year 12 00:00:41,760 --> 00:00:47,320 Speaker 1: to the day until the two elections pinch me and 13 00:00:47,360 --> 00:00:49,720 Speaker 1: as the White House begins the big push on part 14 00:00:49,760 --> 00:00:53,160 Speaker 1: two now of President Biden's economic agenda. New polling numbers 15 00:00:53,159 --> 00:00:57,080 Speaker 1: show his approval ratings sinking to a new low in 16 00:00:57,160 --> 00:01:01,920 Speaker 1: voters preferring Republican congressional candidates over Democrats. If the midterms 17 00:01:01,920 --> 00:01:04,320 Speaker 1: were held today, We'll talk about it with the polster 18 00:01:04,400 --> 00:01:07,240 Speaker 1: behind the numbers, David Paleologos back with us today from 19 00:01:07,280 --> 00:01:11,959 Speaker 1: the Suffolk University Political Research Center. Later Speaker Pelosi promising 20 00:01:11,959 --> 00:01:15,800 Speaker 1: a vote on reconciliation next week, maybe as early as 21 00:01:15,920 --> 00:01:19,880 Speaker 1: a week from today, as some members demand specifics, including 22 00:01:19,959 --> 00:01:23,319 Speaker 1: CBO scores. We're gonna talk about that whole process with 23 00:01:23,360 --> 00:01:26,520 Speaker 1: Douglas Holtzeke and president of the American Action Forum, former 24 00:01:26,560 --> 00:01:30,000 Speaker 1: head of the CBO, and the panel today. Bloomberg Politics 25 00:01:30,000 --> 00:01:32,760 Speaker 1: contributor Jeanie Sanzana with us for the hour, along with 26 00:01:32,840 --> 00:01:35,920 Speaker 1: Lester Months in principle at pr firm b GR Group. 27 00:01:35,959 --> 00:01:38,520 Speaker 1: We are alive from Washington this Monday, and it's still 28 00:01:38,560 --> 00:01:42,360 Speaker 1: hard to believe that after talking about it for months, 29 00:01:43,280 --> 00:01:46,440 Speaker 1: it actually happened. The infrastructure bill passed. Were you awake 30 00:01:46,480 --> 00:01:48,960 Speaker 1: Friday night? It was like a Friday night news dump. 31 00:01:49,000 --> 00:01:51,080 Speaker 1: The White House could have only wished to stage in 32 00:01:51,120 --> 00:01:54,240 Speaker 1: the light of day, but but past it did, with 33 00:01:54,280 --> 00:01:57,200 Speaker 1: the help of thirteen Republicans. I might add the squad 34 00:01:57,360 --> 00:02:01,320 Speaker 1: not so much. But President and Biden says, this is 35 00:02:01,360 --> 00:02:05,760 Speaker 1: what people want, not just well improved infrastructure, roads and bridges, 36 00:02:06,280 --> 00:02:09,800 Speaker 1: but progress. In Washington, he talked about it during a 37 00:02:09,840 --> 00:02:13,079 Speaker 1: news conference at the White House. The one message that 38 00:02:13,200 --> 00:02:17,160 Speaker 1: came across was get something done. It's time to get 39 00:02:17,200 --> 00:02:21,400 Speaker 1: something done. Stop y'all stop talking, get something done. A 40 00:02:21,440 --> 00:02:24,680 Speaker 1: news conference dominated by Bloomberg's and Marie Corduring, I might add, 41 00:02:25,960 --> 00:02:29,720 Speaker 1: even Senate Minority Leader Mitch McConnell had nice things to 42 00:02:29,760 --> 00:02:32,520 Speaker 1: say about the bill. I was delighted that the House 43 00:02:32,560 --> 00:02:36,360 Speaker 1: finally found a way to pass the Instructor Bill last week. 44 00:02:36,480 --> 00:02:38,360 Speaker 1: I think that there may be a way forward, not 45 00:02:38,440 --> 00:02:41,040 Speaker 1: only in Concocut, across the country to deal with these 46 00:02:41,080 --> 00:02:48,880 Speaker 1: longstunding infrastructure problems. Rainbows and unicorns until you look at 47 00:02:48,880 --> 00:02:52,960 Speaker 1: President Biden's approval ratings out early today from Subfolk University 48 00:02:53,000 --> 00:02:57,079 Speaker 1: for USA today. They show President Biden with a new 49 00:02:57,160 --> 00:02:59,640 Speaker 1: low in this pole of thirty eight percent and a 50 00:02:59,639 --> 00:03:01,440 Speaker 1: lot more where that came from. We're joined to talk 51 00:03:01,480 --> 00:03:04,280 Speaker 1: about it with the man behind the poll, David Paley 52 00:03:04,360 --> 00:03:08,120 Speaker 1: Logos is director of the Suffolk University Political Research Center. David, 53 00:03:08,160 --> 00:03:10,840 Speaker 1: welcome back. We last spoke on the election day, and 54 00:03:10,840 --> 00:03:13,640 Speaker 1: you started running this poll the day after. As I 55 00:03:13,680 --> 00:03:17,200 Speaker 1: read the infrastructure bill that just past friday, we should 56 00:03:17,240 --> 00:03:20,520 Speaker 1: start there, got pretty big marks, adding to the conventional 57 00:03:20,560 --> 00:03:23,560 Speaker 1: wisdom that maybe it could have helped Democrats on election day. 58 00:03:24,360 --> 00:03:26,680 Speaker 1: Well that's a great point, you know, the poll was 59 00:03:26,800 --> 00:03:30,679 Speaker 1: fielded kind of nestled in between the elections on November 60 00:03:30,800 --> 00:03:33,919 Speaker 1: two in the passing of this legislation. So I think 61 00:03:33,919 --> 00:03:37,760 Speaker 1: we were recorded probably Biden's worst of the worst in 62 00:03:37,880 --> 00:03:40,200 Speaker 1: terms of the timing of the poll. But you can't 63 00:03:40,200 --> 00:03:44,720 Speaker 1: really control events. But one thing we noticed here is 64 00:03:44,800 --> 00:03:51,160 Speaker 1: that the heart Infrastructure Bill is supported by two to 65 00:03:51,240 --> 00:03:54,760 Speaker 1: one in terms of the people, the same people who 66 00:03:54,840 --> 00:03:59,320 Speaker 1: gave Biden low marks and approval, we only had approval 67 00:04:00,080 --> 00:04:06,640 Speaker 1: fifty disapproval, but those same people gave extremely high marks 68 00:04:06,720 --> 00:04:10,000 Speaker 1: to the hard infrastructure bill. You know, we've got a 69 00:04:10,080 --> 00:04:15,120 Speaker 1: sixty support two opposed. About that, I guess it stands 70 00:04:15,160 --> 00:04:17,839 Speaker 1: to yeah, of course, I guess it stands to reason 71 00:04:17,920 --> 00:04:23,440 Speaker 1: that that connecting Biden to this this legislation will be 72 00:04:23,640 --> 00:04:27,000 Speaker 1: helpful to his approval at some point. But in this snapshot, 73 00:04:27,200 --> 00:04:30,200 Speaker 1: you look further down the line here, and only one 74 00:04:30,240 --> 00:04:34,680 Speaker 1: in four say the Social Spending Bill, the Reconciliation Bill 75 00:04:35,560 --> 00:04:37,840 Speaker 1: would help them and their families. And that is a 76 00:04:37,920 --> 00:04:41,360 Speaker 1: huge disconnect, and that starts to explain that headline number. 77 00:04:42,440 --> 00:04:46,320 Speaker 1: And that's a branding problem because you know, when when 78 00:04:46,360 --> 00:04:49,040 Speaker 1: you when you when we asked about the soft infrastructure, 79 00:04:49,120 --> 00:04:53,840 Speaker 1: the Reconciliation bill only supported it and forty four posed it. 80 00:04:54,839 --> 00:04:58,680 Speaker 1: And and people were not connecting the bill to whether 81 00:04:58,720 --> 00:05:00,960 Speaker 1: it would help or what people said it would hurt 82 00:05:01,000 --> 00:05:04,920 Speaker 1: them or have no effect. So Republicans are winning the 83 00:05:04,960 --> 00:05:09,320 Speaker 1: messaging war on inflation or just overall spending. Democrats have 84 00:05:09,400 --> 00:05:13,560 Speaker 1: gone wild kind of message from the other party. And 85 00:05:13,560 --> 00:05:18,880 Speaker 1: and education, you know, Virginia, really, education and healthcare of 86 00:05:19,160 --> 00:05:24,640 Speaker 1: always been the two strong posts that Democrats at any 87 00:05:24,760 --> 00:05:29,760 Speaker 1: level could stand on. And now education and parental involvement 88 00:05:30,320 --> 00:05:35,440 Speaker 1: in curriculum and at various school districts has been taken 89 00:05:35,440 --> 00:05:40,159 Speaker 1: away from from Democrats, at least in Virginia and potentially 90 00:05:40,160 --> 00:05:43,680 Speaker 1: in other areas. We're talking with David Paley. Logos from 91 00:05:43,720 --> 00:05:47,880 Speaker 1: the Suffolk University Political Research Center. Vice President Kamala Harris 92 00:05:47,920 --> 00:05:50,240 Speaker 1: does not look good in this pol You think pcent 93 00:05:50,360 --> 00:05:54,880 Speaker 1: is bad for Joe Biden. Harris approval rating twenty a 94 00:05:55,040 --> 00:06:01,760 Speaker 1: fifty one disapproval of the job she's doing. Uh, what's 95 00:06:01,760 --> 00:06:05,200 Speaker 1: she doing wrong? David? I mean we're talking about the 96 00:06:05,279 --> 00:06:07,720 Speaker 1: vice president here. Is making the president look good. As 97 00:06:07,720 --> 00:06:11,760 Speaker 1: far as Comala Harris goes number one, she has not 98 00:06:12,040 --> 00:06:15,359 Speaker 1: been visible, you know, and the only time she was 99 00:06:15,560 --> 00:06:20,200 Speaker 1: visible was last Tuesday or before the Tuesday primary, saying 100 00:06:20,520 --> 00:06:23,440 Speaker 1: how Virginia is going to be important to set the 101 00:06:23,520 --> 00:06:28,200 Speaker 1: stage for So I think a lot of people, you know, 102 00:06:28,240 --> 00:06:32,520 Speaker 1: we had of people saying I'm not sure here, you know, 103 00:06:32,640 --> 00:06:37,800 Speaker 1: I mean, these are these are numbers that don't speak 104 00:06:37,800 --> 00:06:40,800 Speaker 1: well for the vice president. The one takeaway I had 105 00:06:40,800 --> 00:06:43,000 Speaker 1: from this poll when I looked at all the numbers, 106 00:06:43,040 --> 00:06:48,400 Speaker 1: because bid numbers are just really bad here is if 107 00:06:48,440 --> 00:06:52,800 Speaker 1: you're a Democrat, if you're a prominent Democrat, why wouldn't 108 00:06:52,839 --> 00:06:56,839 Speaker 1: you try a primary against President Biden if he were 109 00:06:56,920 --> 00:07:00,080 Speaker 1: to decide to run again, because you know e and 110 00:07:00,200 --> 00:07:03,080 Speaker 1: Democrats are saying they don't want him to run. A 111 00:07:03,080 --> 00:07:05,200 Speaker 1: lot of Democrats are saying they don't want them to 112 00:07:05,279 --> 00:07:09,600 Speaker 1: run in And I couldn't help but think, you know, 113 00:07:10,080 --> 00:07:12,480 Speaker 1: and I don't know names, but I couldn't help, but 114 00:07:12,520 --> 00:07:17,240 Speaker 1: think if you're a you know, a Democrat, that that 115 00:07:17,240 --> 00:07:21,360 Speaker 1: that uh is well financed and matches up well with 116 00:07:21,480 --> 00:07:25,080 Speaker 1: something like Biden, because look, Biden one with a big field, 117 00:07:25,200 --> 00:07:27,800 Speaker 1: just that Trump won his primary with a big field. 118 00:07:28,400 --> 00:07:32,920 Speaker 1: But neither were tested one on one in their respective primaries, right, 119 00:07:33,000 --> 00:07:34,720 Speaker 1: And you don't have to worry about a Kamala Harris 120 00:07:34,760 --> 00:07:38,560 Speaker 1: administration apparently at the moment. Uh yeah, pretty pretty amazing 121 00:07:38,560 --> 00:07:41,840 Speaker 1: the number that did not want Joe Biden to run 122 00:07:41,920 --> 00:07:43,800 Speaker 1: for re election in this poll. But I do want 123 00:07:43,800 --> 00:07:45,560 Speaker 1: to ask you about the mid terms, because that's what 124 00:07:45,640 --> 00:07:48,080 Speaker 1: this whole conversation is kind of leading to. We're one 125 00:07:48,160 --> 00:07:50,239 Speaker 1: year out to the day, as I'm sure you've been reminded, 126 00:07:50,320 --> 00:07:53,760 Speaker 1: David Paley logos, and you're showing numbers here that say 127 00:07:53,800 --> 00:07:57,280 Speaker 1: more voters are prepared to vote for a Republican congressional 128 00:07:57,320 --> 00:08:01,400 Speaker 1: candidate than a Democrat. This is a major finding, and 129 00:08:01,440 --> 00:08:04,480 Speaker 1: we have a Republican you know, winning this question by 130 00:08:04,560 --> 00:08:08,160 Speaker 1: plus eight. So a generic congressional question is basically, who 131 00:08:08,160 --> 00:08:10,560 Speaker 1: would you like would you vote for in your own 132 00:08:10,560 --> 00:08:16,040 Speaker 1: congressional district in general um without assigning names. This is 133 00:08:16,080 --> 00:08:18,560 Speaker 1: a question that usually is a layoup for Democrats. And 134 00:08:18,680 --> 00:08:22,480 Speaker 1: national polls of registered voters because national polls have registered 135 00:08:22,520 --> 00:08:26,320 Speaker 1: voters are basic based on the proportion of voters from states, 136 00:08:26,320 --> 00:08:30,960 Speaker 1: So states like California have a huge proportion of these 137 00:08:31,080 --> 00:08:34,240 Speaker 1: national polls. And then you know, California is very democratic. 138 00:08:34,840 --> 00:08:39,000 Speaker 1: The fact that when we pulled U you know, all 139 00:08:39,040 --> 00:08:41,560 Speaker 1: of the states where when you add it all up, 140 00:08:41,760 --> 00:08:44,400 Speaker 1: more people are saying Republicans. And this is kind of 141 00:08:44,440 --> 00:08:47,920 Speaker 1: what we saw on Tuesday with Virginia and even a 142 00:08:47,960 --> 00:08:51,880 Speaker 1: close race in New Jersey and then some other selected areas, 143 00:08:51,960 --> 00:08:57,160 Speaker 1: so that that finding, obviously is something that the Democrats 144 00:08:57,200 --> 00:09:01,520 Speaker 1: have to be thinking about. Thirty eight per cents those 145 00:09:01,520 --> 00:09:05,520 Speaker 1: surveyed would vote for their Republican congressional candidate over the 146 00:09:05,559 --> 00:09:08,360 Speaker 1: Democratic one. And we just heard a couple of days ago, 147 00:09:08,400 --> 00:09:10,959 Speaker 1: less than a week ago, david from Kevin McCarthy, who 148 00:09:11,000 --> 00:09:14,040 Speaker 1: would like to be holding the gavel as the next speaker. 149 00:09:14,080 --> 00:09:15,959 Speaker 1: And that of course is its own question here if 150 00:09:16,040 --> 00:09:18,800 Speaker 1: if Republicans take the majority, but he said they could 151 00:09:18,800 --> 00:09:21,920 Speaker 1: win even more potentially than the sixty three seats UH 152 00:09:22,040 --> 00:09:24,640 Speaker 1: picked up last time around in the mid terms. That 153 00:09:24,679 --> 00:09:29,320 Speaker 1: would be quite a sweep. Absolutely, I mean, you know 154 00:09:29,440 --> 00:09:32,440 Speaker 1: that this is really what midterm elections are all about. 155 00:09:33,040 --> 00:09:36,360 Speaker 1: And and right now, I mean, you know, for Kevin McCarthy, 156 00:09:36,520 --> 00:09:42,160 Speaker 1: he wishes this poll came out next October the midterm elections. 157 00:09:42,240 --> 00:09:44,760 Speaker 1: But you know there are there is a silvil lining 158 00:09:44,760 --> 00:09:47,600 Speaker 1: in the cloud for Democrats in a couple of areas. 159 00:09:47,679 --> 00:09:51,400 Speaker 1: Number one Democrats have time. They have a year. As 160 00:09:51,400 --> 00:09:53,760 Speaker 1: you pointed out at the outset of this piece, they 161 00:09:53,800 --> 00:09:57,040 Speaker 1: do have a full year too to think about retooling, 162 00:09:57,440 --> 00:10:02,160 Speaker 1: you know, rebooting, rebranding and all of the above. And 163 00:10:02,720 --> 00:10:06,199 Speaker 1: they also have the template that Republicans are going to 164 00:10:06,400 --> 00:10:09,920 Speaker 1: use the young can template the young and template of 165 00:10:10,000 --> 00:10:14,360 Speaker 1: taking advantage of Trump support without using Trump visibly and 166 00:10:14,400 --> 00:10:19,559 Speaker 1: then running up margins and suburbia who among parents on 167 00:10:19,600 --> 00:10:23,719 Speaker 1: this issue of education. That template was successful in Virginia, 168 00:10:24,280 --> 00:10:27,640 Speaker 1: but it's been revealed. Sure, they have time to regroup 169 00:10:28,240 --> 00:10:30,679 Speaker 1: and they'll have something to show for themselves that David, 170 00:10:30,720 --> 00:10:33,119 Speaker 1: in our last minute, if they get the full economic 171 00:10:33,120 --> 00:10:36,200 Speaker 1: agenda through and maybe even come back around for some 172 00:10:36,280 --> 00:10:40,360 Speaker 1: more stuff of reconciliation next year. While that could potentially backfire, 173 00:10:40,360 --> 00:10:42,040 Speaker 1: they'll have a lot more to show for two years 174 00:10:42,040 --> 00:10:45,320 Speaker 1: in power. Yeah, you know, they have to they have 175 00:10:45,360 --> 00:10:47,560 Speaker 1: to talk more about healthcare. They have to grab back 176 00:10:47,600 --> 00:10:51,920 Speaker 1: the issue of education and empowerment and not alienate uh, 177 00:10:52,120 --> 00:10:55,240 Speaker 1: you know, themselves with with parents and hope that the 178 00:10:55,280 --> 00:10:58,240 Speaker 1: economy stays strong and inflation doesn't get out of control. 179 00:10:58,600 --> 00:11:02,000 Speaker 1: David Paley logos just one election for you. You're welcome 180 00:11:02,440 --> 00:11:06,959 Speaker 1: the director of the Suffolk University Political Research Center. That's 181 00:11:06,960 --> 00:11:10,480 Speaker 1: where we stand on this eighth of November, one year out. 182 00:11:11,400 --> 00:11:16,400 Speaker 1: This is Bloomberg So Long with Joe Matthew on Bloomberg 183 00:11:16,520 --> 00:11:22,520 Speaker 1: Radio headline on the terminal bill can revamp construction sectors. 184 00:11:22,559 --> 00:11:25,199 Speaker 1: Do you read this? Stocks across the industrial spectrum. You've 185 00:11:25,200 --> 00:11:28,160 Speaker 1: heard Charlie referring to it through the day. Electric vehicle 186 00:11:28,200 --> 00:11:32,160 Speaker 1: makers to construction companies outperform the markets today after what 187 00:11:32,200 --> 00:11:35,800 Speaker 1: I read here, the long awaited infrastructure bill cleared the House. Yes, 188 00:11:35,840 --> 00:11:40,000 Speaker 1: it happened late Friday night early Saturday morning. Now that's 189 00:11:40,000 --> 00:11:41,800 Speaker 1: the kind of news this White House wants to hear. 190 00:11:44,480 --> 00:11:46,640 Speaker 1: But will it be enough to change the political landscape? 191 00:11:46,679 --> 00:11:49,680 Speaker 1: We just discussed with David Paley logos, let's talk about 192 00:11:49,679 --> 00:11:53,280 Speaker 1: it with the panel. Bloomberg Politics contributor Jeanie Shenzano is 193 00:11:53,320 --> 00:11:55,240 Speaker 1: with us, along with Lester Months in principle at b 194 00:11:55,360 --> 00:11:57,600 Speaker 1: g R Group, former staff director of the Senate Foreign 195 00:11:57,640 --> 00:12:01,439 Speaker 1: Relations Committee, former Chief of Staff Senator Mark Kirk of Illinois. 196 00:12:01,480 --> 00:12:04,720 Speaker 1: Thanks to you both for being here. Genie, I hope 197 00:12:04,760 --> 00:12:07,679 Speaker 1: you were awake when this happened Friday night. You deserve 198 00:12:07,760 --> 00:12:10,960 Speaker 1: to be awake. I watch it all happen. Of course 199 00:12:11,000 --> 00:12:13,600 Speaker 1: a lot of people were not, though, and I wonder 200 00:12:13,640 --> 00:12:15,200 Speaker 1: what does this White House have to do to sell 201 00:12:15,200 --> 00:12:18,400 Speaker 1: people on what just happened, never mind get them to 202 00:12:18,480 --> 00:12:20,760 Speaker 1: want more. Yeah, Joe, I have to tell you, I 203 00:12:21,280 --> 00:12:24,200 Speaker 1: was awake. I was I was celebrating. I I know 204 00:12:24,640 --> 00:12:26,880 Speaker 1: you know, I know you were celebrating them getting ready 205 00:12:26,880 --> 00:12:29,800 Speaker 1: to go so get some much needed rest. But you know, 206 00:12:30,080 --> 00:12:32,960 Speaker 1: I do think obviously they have a big job ahead 207 00:12:33,000 --> 00:12:35,440 Speaker 1: of them selling this. And I think it's important what 208 00:12:35,440 --> 00:12:37,880 Speaker 1: what David what David was saying, which is that the 209 00:12:37,920 --> 00:12:41,160 Speaker 1: poll they took happened at to land at the worst 210 00:12:41,200 --> 00:12:44,040 Speaker 1: couple of days for the Democrats, which was the day 211 00:12:44,120 --> 00:12:46,959 Speaker 1: after the election, November through through the fifth and right 212 00:12:47,040 --> 00:12:51,079 Speaker 1: before they had really two very good things happened on Friday. 213 00:12:51,240 --> 00:12:54,640 Speaker 1: One was the impressive job numbers, which we should not overlook. 214 00:12:54,840 --> 00:12:58,000 Speaker 1: The other was the passage of the infrastructure bill. So 215 00:12:58,240 --> 00:13:01,280 Speaker 1: they've got some momentum there. They have to have the 216 00:13:01,400 --> 00:13:04,560 Speaker 1: you know, the push to let the American public know 217 00:13:04,960 --> 00:13:08,120 Speaker 1: what they have done. And it was a bipartisan bill 218 00:13:08,240 --> 00:13:10,920 Speaker 1: and it is about something that we all need. I 219 00:13:10,960 --> 00:13:13,360 Speaker 1: was thinking about you talking about Biden being at the 220 00:13:13,400 --> 00:13:16,200 Speaker 1: Portal Bridge in New Jersey. You know, this one hundred 221 00:13:16,280 --> 00:13:18,920 Speaker 1: year old bridge where they're using hammers. You know, fift 222 00:13:19,120 --> 00:13:22,440 Speaker 1: percent of the time you make it operate. We all 223 00:13:22,520 --> 00:13:25,800 Speaker 1: have those in our states and our neighborhoods. This hard 224 00:13:25,840 --> 00:13:29,160 Speaker 1: Infrastructure bill is much needed. You know, we've been waiting 225 00:13:29,160 --> 00:13:31,080 Speaker 1: for it a long time, and it is up to 226 00:13:31,120 --> 00:13:33,400 Speaker 1: the administration to go out and sell it. They've now 227 00:13:33,440 --> 00:13:35,520 Speaker 1: got a little bit of breathing room on the human 228 00:13:35,600 --> 00:13:37,600 Speaker 1: side of this, but they've got to sell the hard 229 00:13:37,640 --> 00:13:39,960 Speaker 1: infrastructure and they've got a year to do that. We 230 00:13:40,120 --> 00:13:42,439 Speaker 1: got Mitch McConnell out there for crying out loud, helping 231 00:13:42,440 --> 00:13:44,720 Speaker 1: to sell what just happened. And that's a different story 232 00:13:44,760 --> 00:13:47,360 Speaker 1: than the other half, even though it's not really half. 233 00:13:47,360 --> 00:13:48,520 Speaker 1: But you know what I mean in terms of the 234 00:13:48,559 --> 00:13:52,400 Speaker 1: reconciliation bill, I am. I am reminded Lester of a 235 00:13:52,440 --> 00:13:54,880 Speaker 1: conversation we have the day after election day on this 236 00:13:54,920 --> 00:14:01,600 Speaker 1: broadcast with Representative Morgan Griffith, Republican from southwest Virginia, who said, 237 00:14:01,600 --> 00:14:04,920 Speaker 1: if they had passed that reconciliation bill, Terry mcaulifford have 238 00:14:05,040 --> 00:14:08,160 Speaker 1: lost by even more, maybe five fur points, and he 239 00:14:08,280 --> 00:14:10,120 Speaker 1: was making a point there. I don't know if there's 240 00:14:10,120 --> 00:14:12,400 Speaker 1: a lot of science behind it, but that people were 241 00:14:12,440 --> 00:14:14,440 Speaker 1: turned off by the idea. And never mind the action 242 00:14:14,480 --> 00:14:18,080 Speaker 1: of spending that much money. After spending this passing the 243 00:14:18,120 --> 00:14:22,760 Speaker 1: infrastructure bill Friday, the Democrats risk undoing that good with 244 00:14:23,360 --> 00:14:29,760 Speaker 1: the reconciliation bill. Yeah, I totally agree. Um. I think 245 00:14:29,760 --> 00:14:34,000 Speaker 1: it's a it's a I disagree with the congressman. Um. 246 00:14:34,040 --> 00:14:38,840 Speaker 1: I think this is This is what normal American voters 247 00:14:38,960 --> 00:14:41,880 Speaker 1: were looking for from the Biden administration when they elected 248 00:14:41,960 --> 00:14:45,680 Speaker 1: him president a year ago. They were looking for someone 249 00:14:45,680 --> 00:14:49,680 Speaker 1: who would do sensible things. It seemed like his predecessor 250 00:14:49,840 --> 00:14:53,760 Speaker 1: was not doing sensible things. This is having an infrastructure 251 00:14:53,800 --> 00:14:57,640 Speaker 1: bill that that fixes roads and bridges and deals with 252 00:14:57,920 --> 00:15:00,560 Speaker 1: lead pipes that we seemed sensible we have in our 253 00:15:00,600 --> 00:15:03,840 Speaker 1: water system. That's a sensible thing. This is what this 254 00:15:03,920 --> 00:15:06,560 Speaker 1: is what folks we're looking for. That's why it's bipartisan. 255 00:15:06,600 --> 00:15:09,040 Speaker 1: It's more bipartisan in the Senate than it is. We 256 00:15:09,080 --> 00:15:10,920 Speaker 1: can talk about that if you want, but it is 257 00:15:10,960 --> 00:15:14,680 Speaker 1: definitely a bipartisan initiative. It's a problem for the from 258 00:15:14,720 --> 00:15:17,120 Speaker 1: the kind of the trumpy right, and then also for 259 00:15:17,200 --> 00:15:20,680 Speaker 1: the progressive left to some extent. So Biden's got some 260 00:15:20,800 --> 00:15:23,280 Speaker 1: challenges here on how he's going to sell it, because 261 00:15:23,600 --> 00:15:26,600 Speaker 1: there's a lot of Democrats, particularly on the left, the progressives, 262 00:15:26,640 --> 00:15:28,760 Speaker 1: who think, fine, you can have this, but what we 263 00:15:28,880 --> 00:15:31,280 Speaker 1: really want it's the Build Back Better bill, which is 264 00:15:31,960 --> 00:15:36,360 Speaker 1: three trillion depending on what Joe Mansion decides. Uh, that's 265 00:15:36,400 --> 00:15:39,120 Speaker 1: that's a real delimit. He is Biden going to triangulate 266 00:15:39,240 --> 00:15:41,040 Speaker 1: or is he going to double down on this infrastructure. 267 00:15:41,040 --> 00:15:42,480 Speaker 1: I kind of hope for the latter. I think they'd 268 00:15:42,520 --> 00:15:44,040 Speaker 1: be better for him, but I don't think that's what's 269 00:15:44,040 --> 00:15:45,960 Speaker 1: gonna happen. It's interesting, Genie, when you see all the 270 00:15:46,000 --> 00:15:50,120 Speaker 1: issues inside this potential reconciliation bill, whether it's paid leave, 271 00:15:50,880 --> 00:15:53,160 Speaker 1: child tax credit, some of the other issues that we 272 00:15:53,160 --> 00:15:55,400 Speaker 1: talked about every day around here, they actually pull very 273 00:15:55,440 --> 00:16:00,320 Speaker 1: well individually. It's this idea of this massive, comprehensive piece 274 00:16:00,360 --> 00:16:03,080 Speaker 1: of legislation that starts to make a lot of people worry. 275 00:16:03,480 --> 00:16:06,320 Speaker 1: It does it's and it's a piece of legislation that 276 00:16:06,520 --> 00:16:09,240 Speaker 1: is not fully paid for, at least as as far 277 00:16:09,320 --> 00:16:12,920 Speaker 1: as we know. Um, And so I think Democrats have 278 00:16:13,040 --> 00:16:15,720 Speaker 1: to be cautious on this You're right. The parts are 279 00:16:15,920 --> 00:16:19,560 Speaker 1: very popular, whether it's family leave or or almost any 280 00:16:19,560 --> 00:16:22,800 Speaker 1: of the individual parts. The problem I think for the Democrats, 281 00:16:22,800 --> 00:16:25,320 Speaker 1: and what I would advise Joe Biden to focus on 282 00:16:25,840 --> 00:16:28,440 Speaker 1: is he needs to look at the issues people are 283 00:16:28,480 --> 00:16:31,360 Speaker 1: dealing with now. That is gas prices. Those are those 284 00:16:31,440 --> 00:16:34,680 Speaker 1: kitchen table issues that young can talked about so successfully. 285 00:16:34,680 --> 00:16:37,160 Speaker 1: In Virginia, it is the supply chain that may keep 286 00:16:37,200 --> 00:16:40,280 Speaker 1: people from having their Hanukah or having their Christmas. It's 287 00:16:40,400 --> 00:16:44,000 Speaker 1: pending inflation that's got people worried. The economy remains the 288 00:16:44,080 --> 00:16:47,960 Speaker 1: number one issue on people's minds. COVID is actually receiving 289 00:16:47,960 --> 00:16:50,080 Speaker 1: a little bit as the nation starts to open up. 290 00:16:50,240 --> 00:16:52,120 Speaker 1: So Joe Biden has got to get out there and 291 00:16:52,200 --> 00:16:55,960 Speaker 1: say the infrastructure Bill Hart infrastructure was an investment in 292 00:16:56,000 --> 00:16:59,080 Speaker 1: the economy, much needed for us to compete with China. 293 00:16:59,320 --> 00:17:01,600 Speaker 1: And we're going to keep doing more, folks on inflation, 294 00:17:01,640 --> 00:17:04,359 Speaker 1: supply chain, gas and those things. And let Congress figure 295 00:17:04,359 --> 00:17:06,680 Speaker 1: out what it's going to do on human infrastructure. And oh, 296 00:17:06,680 --> 00:17:09,440 Speaker 1: by the way, the death ceiling, that little thing, yeah 297 00:17:09,440 --> 00:17:11,879 Speaker 1: that too, that's coming lester less than a minute left. 298 00:17:11,920 --> 00:17:14,160 Speaker 1: Here was a good politics to hold off on signing 299 00:17:14,160 --> 00:17:16,960 Speaker 1: the bill, so the President could do a big public signing, 300 00:17:17,000 --> 00:17:18,920 Speaker 1: remind people that happened. Maybe do it even while the 301 00:17:18,960 --> 00:17:22,159 Speaker 1: sun was up. I I think so. I mean, he 302 00:17:22,560 --> 00:17:25,159 Speaker 1: needs all the good news he could get his His 303 00:17:25,240 --> 00:17:28,800 Speaker 1: poll numbers are are not strong. He needs, he needs, 304 00:17:28,800 --> 00:17:31,680 Speaker 1: he needs to be doing the basic blocking and tackling 305 00:17:31,680 --> 00:17:34,240 Speaker 1: of politics. So yes, he should. That's the kind of 306 00:17:34,240 --> 00:17:36,760 Speaker 1: thing you should be doing. The House is on recess 307 00:17:36,800 --> 00:17:40,479 Speaker 1: this week, but we are still in the bubble, and 308 00:17:40,480 --> 00:17:42,480 Speaker 1: in just a week from today the House will return. 309 00:17:42,520 --> 00:17:47,440 Speaker 1: Democrats get to the actual job of writing a comprehensive 310 00:17:47,560 --> 00:17:51,240 Speaker 1: bills reconciliation bill, the build back better thing you've been 311 00:17:51,240 --> 00:17:56,040 Speaker 1: hearing about for weeks and months. Speaker Pelosi, as part 312 00:17:56,040 --> 00:17:58,560 Speaker 1: of the big infrastructure vote on Friday night, made it 313 00:17:58,600 --> 00:18:02,080 Speaker 1: a deal to vote on that bill by the fifte 314 00:18:02,400 --> 00:18:04,879 Speaker 1: the week of the fifte November. So the clock is 315 00:18:04,920 --> 00:18:09,000 Speaker 1: ticking here. As moderates in the House, moderate Democrats demand 316 00:18:09,200 --> 00:18:11,960 Speaker 1: a score, a CBO score, and well something they can 317 00:18:11,960 --> 00:18:16,840 Speaker 1: actually read and put into the printer. And somebody who 318 00:18:16,840 --> 00:18:19,040 Speaker 1: knows a little bit about the CBO is Douglas Holtzeek 319 00:18:19,040 --> 00:18:21,960 Speaker 1: and president of the American Action Forum. Former head of 320 00:18:22,000 --> 00:18:25,120 Speaker 1: the Congressional Budget Office Douglas. It's great to have you back. 321 00:18:25,160 --> 00:18:29,639 Speaker 1: Can they get this done in time? Only the CBO 322 00:18:29,760 --> 00:18:33,720 Speaker 1: knows for sure. Certainly they have been working with the 323 00:18:33,760 --> 00:18:37,359 Speaker 1: Congress continually for months, and so they are familiar with 324 00:18:37,560 --> 00:18:40,920 Speaker 1: the kinds of proposals they've got in mind, and they've 325 00:18:40,920 --> 00:18:44,639 Speaker 1: seen drafts of earlier versions, and they've done work to 326 00:18:44,720 --> 00:18:48,440 Speaker 1: figure out what they cost. But the real subtle part 327 00:18:48,640 --> 00:18:52,320 Speaker 1: is that once you would get the final legislation, sometimes 328 00:18:52,320 --> 00:18:54,720 Speaker 1: they don't draft it the way they think it's going 329 00:18:54,760 --> 00:18:57,960 Speaker 1: to work, and you score what's written down not what 330 00:18:58,040 --> 00:19:00,080 Speaker 1: they hope. So they're going to have to read the 331 00:19:00,119 --> 00:19:02,880 Speaker 1: whole thing. That takes a lot of time. Then they'll 332 00:19:02,880 --> 00:19:05,159 Speaker 1: have to figure out what they've got. And then then 333 00:19:05,160 --> 00:19:07,359 Speaker 1: the last part that that people don't often appreciate is 334 00:19:07,800 --> 00:19:11,119 Speaker 1: these proposals often interact. So you've got a child tax credit, 335 00:19:11,160 --> 00:19:14,080 Speaker 1: you've got paid family lead, you've got subsidies for childcare. 336 00:19:14,680 --> 00:19:17,920 Speaker 1: What am I gonna do? And and so people when 337 00:19:17,920 --> 00:19:21,480 Speaker 1: they see one program react one way and and influence another. 338 00:19:21,600 --> 00:19:23,240 Speaker 1: So they got to put them all together and see 339 00:19:23,240 --> 00:19:26,359 Speaker 1: what they've got. So when will they do it? I 340 00:19:26,359 --> 00:19:28,560 Speaker 1: don't know honestly. Okay, when when you're the head of 341 00:19:28,560 --> 00:19:31,399 Speaker 1: the of the CBO, it's something big like this, you 342 00:19:31,400 --> 00:19:33,000 Speaker 1: know it's coming down the pike. Ors you have other 343 00:19:33,040 --> 00:19:35,520 Speaker 1: things you're working on. I'm sure. Is there a big 344 00:19:35,560 --> 00:19:38,920 Speaker 1: all staff meeting? You know? Oh god, the b B 345 00:19:39,119 --> 00:19:42,120 Speaker 1: B arrived. Everybody. We're breaking into groups here as much 346 00:19:42,200 --> 00:19:44,280 Speaker 1: time we have, how much time we have? But what 347 00:19:44,359 --> 00:19:47,160 Speaker 1: does that room look like? Or am I just completely 348 00:19:47,160 --> 00:19:49,199 Speaker 1: over dramatizing this? And how big is the team to 349 00:19:49,240 --> 00:19:53,600 Speaker 1: get all this work done? CEOs about two people a 350 00:19:53,680 --> 00:19:57,320 Speaker 1: hundred ninety of them have advanced degrees, their expert across 351 00:19:57,440 --> 00:20:00,119 Speaker 1: the spectrum and anything you want to know, something abou up. 352 00:20:00,119 --> 00:20:02,560 Speaker 1: There's someone in the CDEO and there's more than anyone else, 353 00:20:02,640 --> 00:20:04,719 Speaker 1: and and everyone gets pulled into this. When a big 354 00:20:04,800 --> 00:20:07,320 Speaker 1: piece of legislation lands like us, no one, no one 355 00:20:07,440 --> 00:20:10,159 Speaker 1: escapes and they're gonna work night and day, and you know, 356 00:20:10,800 --> 00:20:12,920 Speaker 1: they know when the deadline is for vote, when the 357 00:20:13,040 --> 00:20:14,840 Speaker 1: commerstion is back, and they're gonna try to meet that. 358 00:20:15,440 --> 00:20:17,080 Speaker 1: Is there a lot of calling back and forth with 359 00:20:17,119 --> 00:20:19,040 Speaker 1: the leadership, with the authors of the bill when their 360 00:20:19,119 --> 00:20:22,360 Speaker 1: questions coming up. Yeah, okay, oh, yeah, yeah, because you 361 00:20:22,359 --> 00:20:24,320 Speaker 1: you know, you need to have a piece of bill 362 00:20:24,400 --> 00:20:26,080 Speaker 1: text that you're scoring and it's one that they're going 363 00:20:26,119 --> 00:20:27,720 Speaker 1: to vote on. Those have to be the same piece 364 00:20:27,720 --> 00:20:30,679 Speaker 1: of paper. So if you find things you're telling leadership 365 00:20:30,720 --> 00:20:32,840 Speaker 1: right away, you've got a problem. This is what we're reading, 366 00:20:32,920 --> 00:20:36,280 Speaker 1: that's not what you said, what you mean or not. 367 00:20:36,480 --> 00:20:38,600 Speaker 1: And then they go back and they consult, you know, 368 00:20:38,640 --> 00:20:40,720 Speaker 1: and and honestly, there are a lot of games that 369 00:20:40,800 --> 00:20:43,360 Speaker 1: get played with CBO. The people always blaming CBO because 370 00:20:43,359 --> 00:20:44,960 Speaker 1: I don't have the score done yet and they don't 371 00:20:44,960 --> 00:20:48,480 Speaker 1: have a deal yet. And sometimes they will promise a 372 00:20:48,520 --> 00:20:51,160 Speaker 1: member something knowing that when CBO scores is just gonna 373 00:20:51,240 --> 00:20:54,080 Speaker 1: cost hundreds of billions more than they than they can afford. 374 00:20:54,280 --> 00:20:55,840 Speaker 1: And then CBIO comes that can they make them the 375 00:20:55,880 --> 00:20:57,720 Speaker 1: bad guy? Oh, we wanted to do that for you, sir, 376 00:20:57,880 --> 00:21:00,200 Speaker 1: but you know what those things So that's gonna go on. 377 00:21:00,720 --> 00:21:03,560 Speaker 1: This is thanks work. But there are and lawmakers are 378 00:21:03,560 --> 00:21:05,960 Speaker 1: already worried about how this might not come out the 379 00:21:05,960 --> 00:21:07,720 Speaker 1: wash the same way it goes in here right. There 380 00:21:07,800 --> 00:21:10,439 Speaker 1: are concerns that the CBO will not score this the 381 00:21:10,480 --> 00:21:13,159 Speaker 1: same way that leaders have promised, including this idea of 382 00:21:13,560 --> 00:21:16,800 Speaker 1: increased I R S enforcement. Uh, there's the concept of 383 00:21:16,880 --> 00:21:18,840 Speaker 1: dynamics scoring a lot of things that don't play out 384 00:21:18,880 --> 00:21:22,840 Speaker 1: the way lawmakers want them to. The basic fact is 385 00:21:22,840 --> 00:21:25,840 Speaker 1: that CBO owes its existence the fact that Congress didn't 386 00:21:25,880 --> 00:21:29,480 Speaker 1: want to trust the administration's numbers, so starting them in venties, 387 00:21:29,520 --> 00:21:31,879 Speaker 1: they established the CBO so that they had their own numbers. 388 00:21:32,280 --> 00:21:34,159 Speaker 1: That means there's a big history of them not matching, 389 00:21:34,160 --> 00:21:37,440 Speaker 1: and it's a fair concern to expect the CEO come 390 00:21:37,440 --> 00:21:40,479 Speaker 1: down differently than the administration has. Sure, and then of 391 00:21:40,480 --> 00:21:42,440 Speaker 1: course that will you know, get its own spin when 392 00:21:42,480 --> 00:21:44,600 Speaker 1: when it comes out with lawmakers or or does it 393 00:21:44,640 --> 00:21:49,679 Speaker 1: force redrafting in the process if they'll continually redraft, I 394 00:21:49,680 --> 00:21:52,080 Speaker 1: mean we know they've been redrafting all along. So you 395 00:21:52,119 --> 00:21:55,120 Speaker 1: know Thursday night they changed the tax revisions they voted Friday. 396 00:21:55,160 --> 00:21:57,320 Speaker 1: If they start scoring and they find something that they 397 00:21:57,400 --> 00:21:59,840 Speaker 1: isn't gonna work, they'll change it again. Um, this is 398 00:22:00,000 --> 00:22:04,800 Speaker 1: all about getting to yes and getting two eighteen Democratic 399 00:22:04,880 --> 00:22:07,040 Speaker 1: votes when push on the shop and so they'll change 400 00:22:07,080 --> 00:22:09,520 Speaker 1: what they need you to get there. We're talking with 401 00:22:09,560 --> 00:22:12,199 Speaker 1: Douglas Houltziekin here on sound On. I have to ask you, 402 00:22:12,240 --> 00:22:14,679 Speaker 1: because you spent so much time in this world about 403 00:22:14,720 --> 00:22:16,800 Speaker 1: more news from the FED today while you're with us, 404 00:22:16,840 --> 00:22:20,080 Speaker 1: Just curious your thoughts. In our last moment here news 405 00:22:20,080 --> 00:22:23,439 Speaker 1: that FED Governor Randall Quarrels will step down, uh the 406 00:22:23,560 --> 00:22:28,200 Speaker 1: last week of December, giving President Biden another vacancy to 407 00:22:28,359 --> 00:22:30,680 Speaker 1: fill here. Uh, you know, I guess you know. Some 408 00:22:30,720 --> 00:22:33,320 Speaker 1: presidents get the Supreme Court, some presidents get the Fed. 409 00:22:33,359 --> 00:22:36,040 Speaker 1: He's gonna have quite a mark on his body. He 410 00:22:36,160 --> 00:22:38,800 Speaker 1: will have the potential to have Quaire mark on this body. Um. 411 00:22:38,840 --> 00:22:41,120 Speaker 1: But I confessed I've been a bit mystified so far. 412 00:22:41,160 --> 00:22:43,440 Speaker 1: They've had an opening for a while and have nim 413 00:22:43,440 --> 00:22:46,439 Speaker 1: filled it. And I expected him to. I don't know why. Um, 414 00:22:46,480 --> 00:22:49,159 Speaker 1: they've held off on making an announcement on the next chair. 415 00:22:49,560 --> 00:22:51,040 Speaker 1: Why is that? Do you think he sticks with J 416 00:22:51,200 --> 00:22:54,439 Speaker 1: Powell just kind of run out the clock. My personal 417 00:22:54,440 --> 00:22:57,520 Speaker 1: opinion is that he should and will, but I don't 418 00:22:57,520 --> 00:23:00,600 Speaker 1: have any inside information. Um. You know, we'll see how 419 00:23:00,640 --> 00:23:03,879 Speaker 1: this plays out. Um. And all of this comes at 420 00:23:03,880 --> 00:23:06,639 Speaker 1: a time when the FED is in a tough spot. 421 00:23:06,800 --> 00:23:11,400 Speaker 1: The administration's big two drillion dollar stimulus in March generated 422 00:23:11,400 --> 00:23:14,359 Speaker 1: inflation and now the FED is stuck in the crosshairs, 423 00:23:14,440 --> 00:23:16,080 Speaker 1: and so that's a that's a tough position to be 424 00:23:16,119 --> 00:23:18,240 Speaker 1: in when you're not fully staffed and you don't have 425 00:23:18,480 --> 00:23:21,080 Speaker 1: a clear leadership in You're a white house once again, 426 00:23:21,080 --> 00:23:24,600 Speaker 1: a Democratic white house with quite a bit of distance 427 00:23:24,600 --> 00:23:27,119 Speaker 1: away from progressives on this issue. Who would prefer that 428 00:23:27,200 --> 00:23:30,080 Speaker 1: the president fire the FED? Share with the language that 429 00:23:30,119 --> 00:23:33,359 Speaker 1: we hear from Senator Elizabeth Warren for instance, This is 430 00:23:33,400 --> 00:23:35,240 Speaker 1: gonna be a whole other stare offf I guess going 431 00:23:35,240 --> 00:23:39,000 Speaker 1: into the new year. Um, certainly there's a big division 432 00:23:39,000 --> 00:23:40,919 Speaker 1: in the Democratic Party. The president has to deal with 433 00:23:40,960 --> 00:23:43,160 Speaker 1: that all the time. That's that's that's part of the 434 00:23:43,160 --> 00:23:45,800 Speaker 1: turf of being in the White House. Yes, I will say, 435 00:23:46,000 --> 00:23:48,880 Speaker 1: the question is not is there someone the president can 436 00:23:48,880 --> 00:23:51,560 Speaker 1: appoint who the progresses my life? The question is is 437 00:23:51,560 --> 00:23:56,479 Speaker 1: there someone who's gonna get confirmed the speaking the language 438 00:23:56,480 --> 00:23:59,040 Speaker 1: of Washington. Douglas whole seek and president of the American 439 00:23:59,080 --> 00:24:02,680 Speaker 1: Action Forum with a on sound, on love conversations like that. 440 00:24:03,160 --> 00:24:05,600 Speaker 1: All these guys and gals with the with the Green 441 00:24:05,720 --> 00:24:09,560 Speaker 1: visors who have to figure this out. This is Bloomberg, 442 00:24:09,720 --> 00:24:16,080 Speaker 1: So long with Joe Matthew on Bloomberg radio headline on 443 00:24:16,119 --> 00:24:19,359 Speaker 1: the terminal. Quarrels to exit FED at year's end, handing 444 00:24:19,440 --> 00:24:22,840 Speaker 1: another seat to Biden. Indeed, the news came today a 445 00:24:22,880 --> 00:24:26,240 Speaker 1: bit of a surprise. Then again, Quarrels just ended his 446 00:24:26,320 --> 00:24:29,560 Speaker 1: four year term as vice chair of Supervision, so there 447 00:24:29,600 --> 00:24:32,400 Speaker 1: were some folks I guess who saw this coming. Could 448 00:24:32,400 --> 00:24:35,480 Speaker 1: have stayed on as governor. Two. So he's out a 449 00:24:35,520 --> 00:24:38,959 Speaker 1: decade early. When you look at the scorecard here. Then 450 00:24:39,000 --> 00:24:41,720 Speaker 1: President Biden gets to fill this seat. Plus Vice Chair 451 00:24:41,840 --> 00:24:45,560 Speaker 1: Richard Clarita's term as governor expires at the end of January. 452 00:24:45,560 --> 00:24:47,479 Speaker 1: There's an open seat on the board, as we just 453 00:24:47,520 --> 00:24:51,080 Speaker 1: discussed with Douglas Holtzkin, and then of course Chair j 454 00:24:51,200 --> 00:24:55,160 Speaker 1: Powell's term about to expire. Joining us to talk about 455 00:24:55,160 --> 00:24:59,440 Speaker 1: all this. Jesse Hamilton's Bloomberg financial regulation reporter here in Washington. 456 00:24:59,520 --> 00:25:02,760 Speaker 1: Jesse put this in perspective for us. A major impact 457 00:25:02,960 --> 00:25:07,120 Speaker 1: for one president. Yeah, that's right. It marks a bit 458 00:25:07,119 --> 00:25:10,400 Speaker 1: of an end of the era for Trump administration. Big 459 00:25:10,400 --> 00:25:16,399 Speaker 1: bank watchdogs with with Corals, who was a veteran of 460 00:25:16,480 --> 00:25:21,080 Speaker 1: Carlisle Group, much like feed Share Power was uh. He 461 00:25:21,119 --> 00:25:23,680 Speaker 1: was generally thought to be a guy with Wall Street's 462 00:25:23,720 --> 00:25:28,640 Speaker 1: best interests in mind. And uh, he's stepping out late 463 00:25:28,720 --> 00:25:30,679 Speaker 1: next month. So as you say, that's that's going to 464 00:25:30,760 --> 00:25:35,359 Speaker 1: leave quite a few positions in play, and in his 465 00:25:35,480 --> 00:25:40,000 Speaker 1: departure particularly, Uh, it is something that was a bit 466 00:25:40,040 --> 00:25:42,760 Speaker 1: of a question mark. We didn't know for sure whether 467 00:25:43,480 --> 00:25:46,080 Speaker 1: whether he was going to to move on now or not. 468 00:25:46,400 --> 00:25:52,120 Speaker 1: But he did recently lose his expired term as vice 469 00:25:52,160 --> 00:25:56,439 Speaker 1: chairman for Supervision, so he was already sort of sidelined 470 00:25:56,600 --> 00:26:01,560 Speaker 1: as a as a Wall Street rag later uh and 471 00:26:01,560 --> 00:26:03,880 Speaker 1: and he was it was just just a governor at 472 00:26:03,880 --> 00:26:07,520 Speaker 1: this point. How does President Biden handle this? We've already 473 00:26:07,560 --> 00:26:09,399 Speaker 1: got one open seat on the board. He doesn't seem 474 00:26:09,560 --> 00:26:12,800 Speaker 1: in much of a hurry to deal with any of them. 475 00:26:13,200 --> 00:26:15,040 Speaker 1: Are were going to have some morning where all of 476 00:26:15,080 --> 00:26:19,000 Speaker 1: these nominations are made? I think we might. Uh, it's 477 00:26:19,080 --> 00:26:21,560 Speaker 1: it's certainly a frustration for those of us who who 478 00:26:21,560 --> 00:26:24,800 Speaker 1: are this closely. Now. I did have a chance to 479 00:26:24,840 --> 00:26:30,320 Speaker 1: speak with with Governor Quarrels earlier today and uh and 480 00:26:30,320 --> 00:26:33,679 Speaker 1: and did try to ask him whether his departure was 481 00:26:34,320 --> 00:26:37,879 Speaker 1: in any way connected to a plan um and he uh, 482 00:26:38,600 --> 00:26:43,080 Speaker 1: he wouldn't wouldn't rise to that. He basically just indicated 483 00:26:43,080 --> 00:26:46,680 Speaker 1: that he was leaving on his own terms. Um as 484 00:26:46,680 --> 00:26:49,840 Speaker 1: I said, he's, you know, his his term recently expired 485 00:26:49,880 --> 00:26:53,960 Speaker 1: for for his vice chairmanship and he's soon to be expiring, 486 00:26:54,160 --> 00:26:57,200 Speaker 1: uh in his his job as ahead of the Financial 487 00:26:57,200 --> 00:27:01,520 Speaker 1: Stability Board international body. So he's saying that it was 488 00:27:02,040 --> 00:27:05,480 Speaker 1: his own reasons for leaving. Um but where he was 489 00:27:05,520 --> 00:27:07,840 Speaker 1: the first vice chairman for Supervision, right, he was the 490 00:27:07,840 --> 00:27:11,200 Speaker 1: first PROPA then though it came from Dodd Frank. That's right. 491 00:27:11,240 --> 00:27:15,159 Speaker 1: It was sort of a long awaited hiring. Now that 492 00:27:15,680 --> 00:27:18,439 Speaker 1: he did have a bit of a predecessor, uh in 493 00:27:18,680 --> 00:27:24,000 Speaker 1: Governor Daniel Trulo, who never held the vice chair title officially. 494 00:27:24,200 --> 00:27:27,040 Speaker 1: But um, so is this going to be a specialized hire? 495 00:27:27,119 --> 00:27:29,480 Speaker 1: Does Does the President need to hire someone to be 496 00:27:29,600 --> 00:27:32,919 Speaker 1: vice chairman for Supervision beyond you know having a governor 497 00:27:32,960 --> 00:27:37,040 Speaker 1: sit on sitting that job? Oh yeah, I think definitely. Uh, 498 00:27:37,119 --> 00:27:39,920 Speaker 1: this is going to be somebody who has has some 499 00:27:39,920 --> 00:27:44,720 Speaker 1: some serious level of experience, uh, you know, in in 500 00:27:45,680 --> 00:27:48,320 Speaker 1: free favor with liberal members of Congress, for instance, who 501 00:27:48,359 --> 00:27:50,800 Speaker 1: want to see someone who can crack down on Wall Street. 502 00:27:51,960 --> 00:27:53,919 Speaker 1: There's going to be a lot of a lot of 503 00:27:53,920 --> 00:27:57,720 Speaker 1: pressure on this this person, I suppose so, Jesse, appreciate 504 00:27:57,720 --> 00:27:59,600 Speaker 1: you're jumping into to talk to us about a breaking 505 00:27:59,600 --> 00:28:03,320 Speaker 1: story here from our DC studios, Jesse Hamilton's Bloomberg financial 506 00:28:03,359 --> 00:28:06,240 Speaker 1: regulation reporter. And I wonder how the panel feels about 507 00:28:06,280 --> 00:28:08,320 Speaker 1: all of this. It's not the first time we've discussed this, 508 00:28:08,359 --> 00:28:11,600 Speaker 1: although we add another Uh, Jeanie Shenzano is here in 509 00:28:11,680 --> 00:28:14,119 Speaker 1: Lester months and Jeannie, Uh, it's an opportunity for this 510 00:28:14,160 --> 00:28:17,120 Speaker 1: White House? How do they play it? It is an opportunity. 511 00:28:17,240 --> 00:28:20,040 Speaker 1: And you know, I do agree with with Doug holtz 512 00:28:20,080 --> 00:28:23,840 Speaker 1: Eken that one of the sort of things that has 513 00:28:23,880 --> 00:28:26,520 Speaker 1: been sort of a major question is why this is 514 00:28:26,560 --> 00:28:29,760 Speaker 1: taking so long? And then today you get another one. Um, 515 00:28:29,960 --> 00:28:32,560 Speaker 1: you know, So, you know, I do think that the 516 00:28:32,600 --> 00:28:36,880 Speaker 1: president has some challenges here because he is getting pressure 517 00:28:36,960 --> 00:28:40,960 Speaker 1: again from the progressives on particularly j Powell. They obviously 518 00:28:41,000 --> 00:28:43,320 Speaker 1: Elizabeth Woren has made it clear she finds him dangerous, 519 00:28:43,320 --> 00:28:46,520 Speaker 1: she won't support his nomination. Yet you get moderate Democrats 520 00:28:46,560 --> 00:28:48,800 Speaker 1: who have come out publicly and said he would make 521 00:28:48,880 --> 00:28:52,360 Speaker 1: he should be reappointed, and of course Republicans. And the 522 00:28:52,480 --> 00:28:55,840 Speaker 1: problem for the president is which direction does he go in. 523 00:28:56,160 --> 00:28:58,920 Speaker 1: He does have a little bit of room perhaps because 524 00:28:58,960 --> 00:29:02,520 Speaker 1: he's got now a number of seats that he can fill. Um. 525 00:29:02,560 --> 00:29:04,920 Speaker 1: But the real question is he doesn't want to put 526 00:29:04,960 --> 00:29:08,600 Speaker 1: somebody up who can't get confirmed. So he's got to 527 00:29:08,680 --> 00:29:11,200 Speaker 1: not just listen to what the progressives want. And you know, 528 00:29:11,320 --> 00:29:13,440 Speaker 1: another thing that we should keep in mind. You also 529 00:29:13,440 --> 00:29:16,200 Speaker 1: have people like Shared Brown who are raising the question 530 00:29:16,240 --> 00:29:19,080 Speaker 1: of diversity. Um. You know, there should be diversity on 531 00:29:19,120 --> 00:29:21,800 Speaker 1: the board, and there really is not. So that's something 532 00:29:21,800 --> 00:29:24,480 Speaker 1: else that the president certainly has to listen to. Lester, 533 00:29:24,560 --> 00:29:26,160 Speaker 1: how much of a puzzle is this to solve for 534 00:29:26,200 --> 00:29:28,040 Speaker 1: the White House? Do they do this all at once? 535 00:29:28,080 --> 00:29:31,000 Speaker 1: Do they kind of pick through each position, beginning with 536 00:29:31,080 --> 00:29:32,920 Speaker 1: figuring out what in the world to do with With 537 00:29:33,000 --> 00:29:36,800 Speaker 1: j Powell's situation, A lot of people think he'll be renominated, 538 00:29:36,840 --> 00:29:39,960 Speaker 1: but this is obviously uh, this potential for risk or 539 00:29:40,040 --> 00:29:44,040 Speaker 1: reward here the way the Biden administration goes through this. Yeah, 540 00:29:44,080 --> 00:29:46,840 Speaker 1: I I agree with Jeanie on on Oliver points, and 541 00:29:46,880 --> 00:29:48,959 Speaker 1: I think this is like a Rubik's cube, except you 542 00:29:49,000 --> 00:29:51,880 Speaker 1: have to do it in seventh seconds, right, you don't 543 00:29:51,920 --> 00:29:55,320 Speaker 1: want people to be looking too closely. On top of 544 00:29:55,320 --> 00:29:58,520 Speaker 1: all the stuff she mentioned, the administration is trying to 545 00:29:58,600 --> 00:30:02,920 Speaker 1: sell healthy economy to the American people. Biden's numbers are 546 00:30:02,960 --> 00:30:06,960 Speaker 1: really low. They think he's Americans think he's mismanaging the economy. 547 00:30:07,000 --> 00:30:10,480 Speaker 1: They're literally out there today saying the economy is doing 548 00:30:10,520 --> 00:30:13,400 Speaker 1: quite well. It's growing, Wall Streets at an all time high. 549 00:30:13,480 --> 00:30:17,040 Speaker 1: To then have a slit of folks for the said 550 00:30:17,240 --> 00:30:20,560 Speaker 1: who are gonna light Wall Street on fire seems like 551 00:30:20,600 --> 00:30:23,000 Speaker 1: it really goes against that argument. So I think there's 552 00:30:23,040 --> 00:30:25,840 Speaker 1: there's a real dilemma for the White House. They're gonna 553 00:30:25,840 --> 00:30:29,400 Speaker 1: have to come up with a package that satisfies the 554 00:30:29,760 --> 00:30:31,600 Speaker 1: middle of the road Democrats who are a real force 555 00:30:31,640 --> 00:30:36,360 Speaker 1: in the Senate mansion and others get a little Republican approval, 556 00:30:36,440 --> 00:30:39,160 Speaker 1: and then also find something for Elizabeth Warren at the 557 00:30:39,200 --> 00:30:43,160 Speaker 1: far left, who have indicated they need some ships here. 558 00:30:43,200 --> 00:30:44,640 Speaker 1: So it's it's gonna be a tough thing. You have 559 00:30:44,680 --> 00:30:47,280 Speaker 1: to do it real fast. Maybe fast. Do you think 560 00:30:47,400 --> 00:30:50,719 Speaker 1: they come out at once, nominate everybody in one news release. 561 00:30:51,400 --> 00:30:53,640 Speaker 1: I think I think it will be a staccato kind 562 00:30:53,680 --> 00:30:57,600 Speaker 1: of Uh, we're gonna we have a solution that should work, 563 00:30:57,920 --> 00:31:01,440 Speaker 1: and everyone's gonna have to compromise a little. The good 564 00:31:01,440 --> 00:31:03,880 Speaker 1: seat about having three seats here, I guess, Genie, is 565 00:31:03,880 --> 00:31:06,480 Speaker 1: that you can kind of try to make everybody happy. 566 00:31:06,520 --> 00:31:09,520 Speaker 1: That's right. It does give the president some breathing room 567 00:31:09,560 --> 00:31:12,200 Speaker 1: here to give everybody a little bit of what they want. 568 00:31:12,240 --> 00:31:16,240 Speaker 1: And nobody gets everything they want as as seems to 569 00:31:16,240 --> 00:31:19,160 Speaker 1: be what happens in Washington, but you know, the president 570 00:31:19,440 --> 00:31:21,640 Speaker 1: is going to have to Um, I think you or 571 00:31:21,720 --> 00:31:24,760 Speaker 1: should look at this as a real opportunity as well, 572 00:31:24,800 --> 00:31:28,360 Speaker 1: because he can really put his stamp not only on 573 00:31:28,400 --> 00:31:31,520 Speaker 1: the FED, but also show the American public as he's 574 00:31:31,560 --> 00:31:34,920 Speaker 1: out trying to show that he's addressing economic issues, that 575 00:31:35,040 --> 00:31:39,120 Speaker 1: he is making sound decisions in this regard and that 576 00:31:39,240 --> 00:31:42,120 Speaker 1: he has, you know, his stamp on this. So I 577 00:31:42,160 --> 00:31:45,000 Speaker 1: think it does give the president an opportunity if he 578 00:31:45,080 --> 00:31:48,560 Speaker 1: doesn't go too far to you know, either side. Genie 579 00:31:48,680 --> 00:31:50,280 Speaker 1: Lester on the panel here, I want to ask you 580 00:31:50,320 --> 00:31:52,479 Speaker 1: about one more story while we have a couple of minutes, 581 00:31:52,760 --> 00:31:54,480 Speaker 1: A big story that broke today and it's not, in 582 00:31:54,560 --> 00:31:57,880 Speaker 1: my opinion, it's not getting nearly enough attention here. The 583 00:31:58,000 --> 00:32:00,840 Speaker 1: kind of action going back to where we started this 584 00:32:00,840 --> 00:32:04,440 Speaker 1: hour that could potentially help the administration to help its credibility, 585 00:32:04,680 --> 00:32:07,280 Speaker 1: an actual response. Do you hear that? To this Russian 586 00:32:07,320 --> 00:32:10,880 Speaker 1: based ransomware attack? All round up of five suspects, arrest 587 00:32:10,960 --> 00:32:14,120 Speaker 1: and indictment and reward for more information. This is the 588 00:32:14,840 --> 00:32:18,400 Speaker 1: revel hackers connected to Russia and it was part of 589 00:32:18,520 --> 00:32:22,040 Speaker 1: a deal between the United States. European authorities rolled this 590 00:32:22,120 --> 00:32:26,880 Speaker 1: out as well as authorities UH in South Korea. This 591 00:32:26,960 --> 00:32:29,160 Speaker 1: is the kind of stuff people were waiting for after 592 00:32:29,200 --> 00:32:31,800 Speaker 1: the first G twenty meeting. Genie, we talked about it. 593 00:32:32,080 --> 00:32:35,520 Speaker 1: You know, where is where is the response here? When 594 00:32:35,560 --> 00:32:37,840 Speaker 1: when the White House talks about this like an act 595 00:32:37,880 --> 00:32:40,760 Speaker 1: of war, shouldn't be we shouldn't we be responding with 596 00:32:40,800 --> 00:32:43,960 Speaker 1: as much emphasis here? This is kind of another news 597 00:32:44,000 --> 00:32:46,600 Speaker 1: release that floats out from the White House. How do 598 00:32:46,680 --> 00:32:50,360 Speaker 1: they sell the message on stories like these more effectively? Yeah, 599 00:32:50,360 --> 00:32:52,880 Speaker 1: and you're right, this has not gotten the coverage it deserves, 600 00:32:52,920 --> 00:32:55,160 Speaker 1: and neither has the fact And I thought this was 601 00:32:55,240 --> 00:32:59,320 Speaker 1: so interesting that CIA director Bill Burns was in Moscow 602 00:32:59,680 --> 00:33:03,600 Speaker 1: talk king to Vladimir Putin and this issue came up, 603 00:33:03,640 --> 00:33:06,600 Speaker 1: obviously as a major issue that they were talking about, 604 00:33:06,640 --> 00:33:08,840 Speaker 1: not just on on the build up on the Ukraine 605 00:33:08,840 --> 00:33:12,200 Speaker 1: border and so, and the President did say although again 606 00:33:12,200 --> 00:33:14,000 Speaker 1: it didn't get a lot of coverage that it was 607 00:33:14,040 --> 00:33:17,040 Speaker 1: the same message that is CIA director sent is the 608 00:33:17,080 --> 00:33:20,920 Speaker 1: same one he gave to putin on this issue on ransomware, 609 00:33:20,960 --> 00:33:23,880 Speaker 1: and that they the people who were offenders, would be 610 00:33:23,960 --> 00:33:28,240 Speaker 1: held responsible. Well, today they are being held responsible and 611 00:33:28,320 --> 00:33:30,440 Speaker 1: this is critically important. And we were just hearing that 612 00:33:30,520 --> 00:33:34,360 Speaker 1: about another ransomware attack. Um, you know they're coming every day, 613 00:33:34,400 --> 00:33:35,880 Speaker 1: but you know, I think they have to have a 614 00:33:35,880 --> 00:33:38,800 Speaker 1: twofold strategy. They have to find people, they have to 615 00:33:38,840 --> 00:33:40,920 Speaker 1: hold them accountable. They're also going to have to make 616 00:33:40,960 --> 00:33:43,680 Speaker 1: strides and how to address these before they happen, and 617 00:33:43,760 --> 00:33:46,560 Speaker 1: that's where we're not seeing as much action at this point. 618 00:33:46,680 --> 00:33:49,120 Speaker 1: The Attorney General Merrick Arland declined to say, by the way, 619 00:33:49,120 --> 00:33:52,080 Speaker 1: whether the Russian government condoned or was even aware of 620 00:33:52,560 --> 00:33:56,040 Speaker 1: the attacks Lester, But as a foreign policy expert, isn't 621 00:33:56,080 --> 00:33:58,320 Speaker 1: this also the kind of headline that this White House 622 00:33:58,320 --> 00:34:01,800 Speaker 1: should be seizing on to to help its credibility. I 623 00:34:01,800 --> 00:34:03,600 Speaker 1: don't know how many people heard about this today, but 624 00:34:03,640 --> 00:34:05,800 Speaker 1: a lot of people were asking about what's Joe Biden 625 00:34:05,840 --> 00:34:09,640 Speaker 1: going to do when that ransomware happened. Yeah, I think 626 00:34:09,680 --> 00:34:11,920 Speaker 1: this is a good news story. For Joe Biden. I 627 00:34:11,920 --> 00:34:16,640 Speaker 1: think the the American national security infrastructure that deals with 628 00:34:16,719 --> 00:34:19,799 Speaker 1: these kinds of attack is much healthier than people realize. 629 00:34:19,800 --> 00:34:24,480 Speaker 1: Our capabilities are quite good. This administration has made the 630 00:34:24,520 --> 00:34:28,680 Speaker 1: decision to go ahead and use them, thank goodness. I 631 00:34:28,680 --> 00:34:32,880 Speaker 1: think the previous administrations started in that direction after some 632 00:34:33,000 --> 00:34:37,960 Speaker 1: reticence from the Obama administration and previous presidents. So this 633 00:34:38,080 --> 00:34:41,920 Speaker 1: is good, This is forward leaning, This is demonstrating effectiveness 634 00:34:41,920 --> 00:34:44,640 Speaker 1: badly needed, because in the absence of it, we're just this. 635 00:34:44,800 --> 00:34:48,080 Speaker 1: This problem will grow and grow and grow. As we 636 00:34:48,120 --> 00:34:49,960 Speaker 1: start to respond, You're going to see more of a 637 00:34:50,080 --> 00:34:53,759 Speaker 1: deterrence effect happening. Uh. And so I think this is 638 00:34:53,800 --> 00:34:56,319 Speaker 1: absolutely something the administration should be bragging about. They have 639 00:34:56,400 --> 00:34:59,240 Speaker 1: very good people in these positions. Jen Easterly at Sissa 640 00:35:00,080 --> 00:35:03,480 Speaker 1: Homelonde Security, very good appointment by the president. If the 641 00:35:03,520 --> 00:35:07,000 Speaker 1: reward generates more information, Lester, should this administration show a 642 00:35:07,040 --> 00:35:12,040 Speaker 1: more meaningful response in terms of a counter attack? I 643 00:35:12,080 --> 00:35:14,880 Speaker 1: think so. I think you know, we have capabilities to 644 00:35:15,080 --> 00:35:17,879 Speaker 1: handle these kinds of attacks, more than more than has 645 00:35:17,920 --> 00:35:20,360 Speaker 1: been made public. It sure seems like if we're going 646 00:35:20,400 --> 00:35:22,400 Speaker 1: to call this an act of war, maybe we should 647 00:35:22,440 --> 00:35:25,120 Speaker 1: handle it like one, but nice to see the wheels 648 00:35:25,160 --> 00:35:27,880 Speaker 1: turning on this. At least five individuals in trouble and 649 00:35:27,880 --> 00:35:32,319 Speaker 1: a reward asking for more information. Jeanie Schanzano and Lester 650 00:35:32,480 --> 00:35:35,080 Speaker 1: Munson with us today from the PR firm b g 651 00:35:35,400 --> 00:35:37,920 Speaker 1: R Group. Great to talk it all out with you, 652 00:35:38,000 --> 00:35:40,240 Speaker 1: and thanks for being with us on a Monday edition 653 00:35:40,280 --> 00:35:42,359 Speaker 1: of sound On. We'll meet you back here tomorrow. I'm 654 00:35:42,440 --> 00:35:44,120 Speaker 1: Joe Matthew. This is Bloomberg