1
00:00:01,480 --> 00:00:06,200
Speaker 1: Now from our nation's capital. This is Bloomberg Sound on

2
00:00:07,520 --> 00:00:10,320
Speaker 1: Democracy is at stake, and we have to have alliances

3
00:00:10,320 --> 00:00:13,680
Speaker 1: of people that strongly disagree on everything, but that fact

4
00:00:13,760 --> 00:00:15,960
Speaker 1: conflation is not going to be a problem. Placion will

5
00:00:16,000 --> 00:00:21,000
Speaker 1: moderate Bloomberg Sound on politics, policy and perspective from DC's

6
00:00:21,079 --> 00:00:25,119
Speaker 1: top names. It would be insanity if the Democrats don't

7
00:00:25,160 --> 00:00:28,159
Speaker 1: do something on build back better. Pennsylvania, one of the

8
00:00:28,160 --> 00:00:31,440
Speaker 1: closest states in the election, will be critical for deciding

9
00:00:31,480 --> 00:00:36,720
Speaker 1: which party controls the Senate. After Bloomberg Sound On with

10
00:00:36,840 --> 00:00:42,120
Speaker 1: Joe Matthew on Bloomberg Radio, the water is getting hot,

11
00:00:42,400 --> 00:00:45,159
Speaker 1: but the pot has not boiled over yet. Welcome to

12
00:00:45,200 --> 00:00:48,199
Speaker 1: the fastest hour in politics. With an eye still on

13
00:00:48,280 --> 00:00:52,040
Speaker 1: Russia and Ukraine, we have news from Washington where President

14
00:00:52,120 --> 00:00:55,240
Speaker 1: Biden is weighing in today on sanctions and the possible

15
00:00:55,360 --> 00:00:58,840
Speaker 1: use of force. Some impromptu comments and we'll have them

16
00:00:58,880 --> 00:01:00,760
Speaker 1: for you. We'll talk about the way forward as well,

17
00:01:00,800 --> 00:01:04,679
Speaker 1: with Congressman Shawn cast and Democrat from Illinois also introducing

18
00:01:04,760 --> 00:01:07,920
Speaker 1: legislation now to band members of Congress from trading stocks,

19
00:01:08,319 --> 00:01:10,600
Speaker 1: a bit of a movement lately on Capitol Hill. He'll

20
00:01:10,600 --> 00:01:12,840
Speaker 1: have details for us and later as this week's FED

21
00:01:12,880 --> 00:01:16,360
Speaker 1: meeting gets underway. In a big decision ready for tomorrow,

22
00:01:16,400 --> 00:01:18,920
Speaker 1: we'll talk about it with Columbia law professor Katherine Judge

23
00:01:18,920 --> 00:01:21,240
Speaker 1: and will get insights, of course from the panel. Our

24
00:01:21,319 --> 00:01:24,720
Speaker 1: signature paneled in place today Bloomberg Politics contributors Genie shen

25
00:01:24,800 --> 00:01:28,280
Speaker 1: say Know and Rick Davis with analysis on Russia, Ukraine,

26
00:01:28,720 --> 00:01:31,679
Speaker 1: the FED, and the future of the Biden agenda. The

27
00:01:31,760 --> 00:01:34,319
Speaker 1: President left the mansion today, went out for a little

28
00:01:34,360 --> 00:01:38,800
Speaker 1: ice cream after visiting a local small business called honey Maid.

29
00:01:39,040 --> 00:01:41,400
Speaker 1: Get ready for more of that kind of stuff. Quick

30
00:01:41,440 --> 00:01:44,480
Speaker 1: shot from the White House talked to a local entrepreneur

31
00:01:44,520 --> 00:01:47,880
Speaker 1: about building back better. Spent a little time talking with

32
00:01:47,920 --> 00:01:51,120
Speaker 1: the White House pool though, the reporters who travel everywhere

33
00:01:51,160 --> 00:01:53,360
Speaker 1: the President goes. Of course, the questions were all about

34
00:01:53,480 --> 00:01:58,080
Speaker 1: Ukraine and Russia, and President Biden made news on a

35
00:01:58,080 --> 00:02:02,360
Speaker 1: couple of fronts. Here he is. I was watching one

36
00:02:02,400 --> 00:02:06,120
Speaker 1: of you on television pointing out the fact that I

37
00:02:06,120 --> 00:02:08,919
Speaker 1: think you've got it right. Whoever it was, I'm embarrassed.

38
00:02:08,919 --> 00:02:12,120
Speaker 1: I don't remember who saying that this is all putin.

39
00:02:12,320 --> 00:02:14,720
Speaker 1: I don't think even as people know for certain what

40
00:02:14,760 --> 00:02:17,840
Speaker 1: he's going to do would you ever see yourself personally

41
00:02:17,919 --> 00:02:23,040
Speaker 1: sanctioning him if he did invade Ukraine? Yes, yes, I

42
00:02:23,080 --> 00:02:29,639
Speaker 1: would see that personally sanctioning Vladimir Putin. The President was

43
00:02:29,680 --> 00:02:32,440
Speaker 1: also asked about deploying troops now that we know that Pentagon,

44
00:02:32,480 --> 00:02:34,760
Speaker 1: as we told you this time yesterday, has eight thousand,

45
00:02:34,840 --> 00:02:37,320
Speaker 1: five hundred of them standing by. Here's what the President

46
00:02:37,360 --> 00:02:41,400
Speaker 1: said about that. We have no intention of putting American forces,

47
00:02:41,760 --> 00:02:47,000
Speaker 1: our native forces in Ukraine, but we I said, they're

48
00:02:47,040 --> 00:02:51,120
Speaker 1: going to be serious economic consequences if he moves. The

49
00:02:51,200 --> 00:02:54,080
Speaker 1: President going on to say that a Russian invasion of

50
00:02:54,240 --> 00:02:57,880
Speaker 1: Ukraine would be the biggest the world has seen since

51
00:02:58,000 --> 00:03:02,120
Speaker 1: World War Two. It's bringing Congressman seaan Caston Democrat from

52
00:03:02,120 --> 00:03:04,639
Speaker 1: Illinois who serves on the House Financial Services Committee. We

53
00:03:04,680 --> 00:03:06,960
Speaker 1: want to touch on a couple of items. Congressmen, welcome back.

54
00:03:07,000 --> 00:03:09,240
Speaker 1: I want to ask you about your legislation to ban

55
00:03:09,360 --> 00:03:12,720
Speaker 1: members from trading stocks. But first, what are your thoughts

56
00:03:12,800 --> 00:03:16,720
Speaker 1: on Russia today in Ukraine? Should Congress pursue legislation to

57
00:03:16,800 --> 00:03:21,440
Speaker 1: authorize the use of force before we go any further here, um,

58
00:03:21,480 --> 00:03:23,120
Speaker 1: I think it's important for us to have every two

59
00:03:23,160 --> 00:03:26,680
Speaker 1: on our arsenal as quickly as possible. UM. Putin has

60
00:03:26,680 --> 00:03:28,440
Speaker 1: made it very clear that he wants to reunite the

61
00:03:28,480 --> 00:03:33,000
Speaker 1: Soviet Union and that he is uh not ethically constrained.

62
00:03:34,080 --> 00:03:38,800
Speaker 1: Our friends in Ukraine are are still seething at what

63
00:03:38,880 --> 00:03:41,280
Speaker 1: Russia didn't crimea and I think it's important for us

64
00:03:41,800 --> 00:03:45,720
Speaker 1: to send a strong signal that military action, sanctions action

65
00:03:46,280 --> 00:03:48,120
Speaker 1: will be on the table, and we need to make

66
00:03:48,120 --> 00:03:51,320
Speaker 1: it very clear to Putin that his smartest next move

67
00:03:51,400 --> 00:03:54,760
Speaker 1: is to back down office um this adventure he's currently on. Well,

68
00:03:54,760 --> 00:03:57,119
Speaker 1: I know sanctions are a big part of this conversation,

69
00:03:57,280 --> 00:04:00,600
Speaker 1: and there is legislation, uh that's in the works, at

70
00:04:00,640 --> 00:04:03,120
Speaker 1: least on Capitol Hill. The Treasury has its own side

71
00:04:03,120 --> 00:04:07,200
Speaker 1: of this. But Congressmen, you know, we keep hearing that

72
00:04:07,200 --> 00:04:09,640
Speaker 1: that that they're going to be these brutal sanctions are

73
00:04:09,640 --> 00:04:11,400
Speaker 1: going to be the worst we ever felt. The President

74
00:04:11,480 --> 00:04:17,000
Speaker 1: just now talking about personally sanctioning Vladimir Putin. But are

75
00:04:17,080 --> 00:04:19,520
Speaker 1: both sides of the Aisle on board with this? Will

76
00:04:19,520 --> 00:04:25,040
Speaker 1: there be legislation with bipartisan support? UM? I would hope so.

77
00:04:25,120 --> 00:04:27,440
Speaker 1: But the important thing for us is to do what's right.

78
00:04:28,040 --> 00:04:30,520
Speaker 1: I mean, look, we're not that far away from a

79
00:04:30,600 --> 00:04:33,320
Speaker 1: number of my colleagues across the Aisle thinking that it

80
00:04:33,360 --> 00:04:36,360
Speaker 1: was more important to withhold military aid to our allies

81
00:04:36,360 --> 00:04:39,080
Speaker 1: in Ukraine than to stand up to Donald Trump. And

82
00:04:39,120 --> 00:04:41,599
Speaker 1: so I am not going to speculate on where their

83
00:04:41,600 --> 00:04:45,200
Speaker 1: morals are on this issue. But let's but let's be

84
00:04:45,320 --> 00:04:50,640
Speaker 1: very clear, the military confrontration, concentration and the military confrontration

85
00:04:50,760 --> 00:04:56,240
Speaker 1: confrontation Eastern Europe um is not a good thing. And

86
00:04:56,279 --> 00:04:58,040
Speaker 1: if any of my colleagues on either side of the

87
00:04:58,080 --> 00:05:00,360
Speaker 1: Aisle don't understand that, I would encourage them go back

88
00:05:00,360 --> 00:05:03,000
Speaker 1: and read their nine grade social study. Well, you know,

89
00:05:03,040 --> 00:05:05,880
Speaker 1: they would also read that Congress has a say in this.

90
00:05:06,040 --> 00:05:09,120
Speaker 1: And I just wonder before troops are potentially sent overseas

91
00:05:09,160 --> 00:05:11,440
Speaker 1: if that should be you know, written in legislation with

92
00:05:11,480 --> 00:05:15,560
Speaker 1: an authorization. Well, I think there's one set of questions

93
00:05:15,600 --> 00:05:18,520
Speaker 1: around engaging in an act of war, which is clearly

94
00:05:18,520 --> 00:05:22,880
Speaker 1: a congressional matter. There's a separate question about our obligations

95
00:05:22,960 --> 00:05:26,400
Speaker 1: under NATO. What we're talking about right now is putting um,

96
00:05:26,560 --> 00:05:29,200
Speaker 1: you know, putting defensive weapons in place, putting defensive troops

97
00:05:29,240 --> 00:05:33,520
Speaker 1: in place, and and and not not declaring war, but

98
00:05:33,640 --> 00:05:36,960
Speaker 1: making it clear to Putin that there are consequences if

99
00:05:36,960 --> 00:05:40,279
Speaker 1: he crosses a line. President was asked in that conversation, Congressman,

100
00:05:40,279 --> 00:05:43,280
Speaker 1: you might have heard it by our own Josh wind Grove,

101
00:05:43,440 --> 00:05:45,719
Speaker 1: our White House correspondent, who was who was on that

102
00:05:45,880 --> 00:05:50,640
Speaker 1: jaunt to the local business. If we're growing closer to

103
00:05:50,760 --> 00:05:54,440
Speaker 1: war or if there's a standoff a real status quo here,

104
00:05:54,839 --> 00:05:56,640
Speaker 1: do you have a feel for that, Congressman? Or the

105
00:05:56,680 --> 00:05:59,000
Speaker 1: drums beating louder today than they were over the weekend.

106
00:06:00,400 --> 00:06:02,280
Speaker 1: I think the wild card that all of us struggle

107
00:06:02,360 --> 00:06:04,640
Speaker 1: with is what is in Putin's mind. This is this

108
00:06:04,720 --> 00:06:07,800
Speaker 1: is not a man who generally engages in strategies as

109
00:06:07,880 --> 00:06:10,320
Speaker 1: much as he engages in two tactics, that wants to

110
00:06:10,360 --> 00:06:14,400
Speaker 1: see what works, and so I think diplomatically the important

111
00:06:14,400 --> 00:06:16,040
Speaker 1: thing for us is to make it clear to him

112
00:06:16,080 --> 00:06:20,520
Speaker 1: that this particular tactic is a bad idea and it's

113
00:06:20,680 --> 00:06:23,200
Speaker 1: and it's none of us, none of us want this

114
00:06:23,279 --> 00:06:26,640
Speaker 1: to escalate, at least of all our friends in Ukraine. Um.

115
00:06:26,839 --> 00:06:30,680
Speaker 1: But but I think given his behavior in Crimea, in

116
00:06:30,720 --> 00:06:33,800
Speaker 1: Georgia and other parts of the Baltic States, I think

117
00:06:34,120 --> 00:06:36,720
Speaker 1: we have too much recent evidence with what happens if

118
00:06:36,720 --> 00:06:38,880
Speaker 1: he thinks he can get away with moving a little

119
00:06:38,880 --> 00:06:42,480
Speaker 1: bit farther. Talking with Congressman Sean Caston on Bloomberg Sound On,

120
00:06:43,320 --> 00:06:46,040
Speaker 1: the biggest issue for you right now is stock trading

121
00:06:46,040 --> 00:06:47,880
Speaker 1: by members of Congress, at least in terms of the

122
00:06:48,000 --> 00:06:50,200
Speaker 1: legislation that you're writing. Congressman will like to ask you

123
00:06:50,200 --> 00:06:54,080
Speaker 1: about this because we've had several of them over past months.

124
00:06:54,120 --> 00:06:58,920
Speaker 1: You believe that House members, members of the Senate, congressional

125
00:06:59,040 --> 00:07:02,880
Speaker 1: elected official should not be allowed to trade stocks at all.

126
00:07:03,200 --> 00:07:07,760
Speaker 1: Is that any individual security? What is your bill say? Um? So,

127
00:07:07,800 --> 00:07:09,400
Speaker 1: this is a bill that I'm a co sponsor of

128
00:07:09,440 --> 00:07:12,160
Speaker 1: with Congressman Christian Morphy, of the band Conflicted Trading Act,

129
00:07:12,200 --> 00:07:14,120
Speaker 1: And what we say is that members of Congress and

130
00:07:14,160 --> 00:07:16,840
Speaker 1: senior staff should be banned from buying and selling individual

131
00:07:16,880 --> 00:07:20,680
Speaker 1: stocks and from serving on any corporate boards. And you

132
00:07:20,720 --> 00:07:23,200
Speaker 1: know the logic for this. Number one is twofold. I've

133
00:07:23,200 --> 00:07:26,120
Speaker 1: spent sixteen years as a CEO. We worked really hard

134
00:07:26,200 --> 00:07:28,160
Speaker 1: to make sure that all of our employees had access

135
00:07:28,160 --> 00:07:30,800
Speaker 1: to a good floor oh one K and I would

136
00:07:30,800 --> 00:07:32,640
Speaker 1: have thrown an investment advisor out of the room if

137
00:07:32,640 --> 00:07:34,920
Speaker 1: they came in and said, I told my employees that

138
00:07:34,920 --> 00:07:37,160
Speaker 1: it was in their interest to day trade. You know,

139
00:07:37,240 --> 00:07:41,080
Speaker 1: we all know that there are a tiny number of people,

140
00:07:41,120 --> 00:07:43,600
Speaker 1: most of them named Warren Buffett, who can consistently beat

141
00:07:43,640 --> 00:07:45,520
Speaker 1: the market. The rest of us should be in index

142
00:07:45,560 --> 00:07:48,960
Speaker 1: funds and mutual funds. When you look at the financial

143
00:07:49,000 --> 00:07:52,360
Speaker 1: performance of the investments by members of Congress, it turns

144
00:07:52,360 --> 00:07:55,400
Speaker 1: out they do really well. And you have to ask yourself,

145
00:07:55,400 --> 00:07:58,320
Speaker 1: do you think members of Congress are smarter than the

146
00:07:58,360 --> 00:08:01,680
Speaker 1: average Wall Street trader or you have access to inside information.

147
00:08:01,960 --> 00:08:05,960
Speaker 1: I just thought they were reading Bloomberg, of course, but

148
00:08:06,080 --> 00:08:08,680
Speaker 1: there's that. But I think, you know, we we do

149
00:08:08,760 --> 00:08:10,880
Speaker 1: know things before you know. We know when we're about to,

150
00:08:11,240 --> 00:08:14,400
Speaker 1: you know, unleashed massive amounts of money into you know,

151
00:08:14,960 --> 00:08:18,880
Speaker 1: you know, anti viral therapies or for or vaccines. We

152
00:08:18,920 --> 00:08:21,640
Speaker 1: know when we're about to make major investments of effective

153
00:08:21,640 --> 00:08:27,400
Speaker 1: defense industry. And the know, if you're behaving ethically, put

154
00:08:27,440 --> 00:08:29,960
Speaker 1: your money in a you know, in an in an

155
00:08:30,000 --> 00:08:35,240
Speaker 1: index fund, mutual fund. But number two, there's a when

156
00:08:35,280 --> 00:08:39,920
Speaker 1: people perceive that members of Congress are not behaving ethically,

157
00:08:40,760 --> 00:08:43,840
Speaker 1: it lowers the respect for the entire government. Even if

158
00:08:43,880 --> 00:08:47,360
Speaker 1: it's the tiny number of bad apples and you know,

159
00:08:47,400 --> 00:08:50,160
Speaker 1: our founders created a government that depends on the consent

160
00:08:50,240 --> 00:08:53,080
Speaker 1: of the government, and I think we jeopardize that at

161
00:08:53,080 --> 00:08:54,840
Speaker 1: our peril. So I'll tell you this seems to be

162
00:08:54,840 --> 00:08:57,520
Speaker 1: one of the real by partisan issues on Capitol Hill.

163
00:08:57,600 --> 00:08:59,200
Speaker 1: My goodness that when when you look at some of

164
00:08:59,240 --> 00:09:01,280
Speaker 1: the other version and some of the other bills that

165
00:09:01,320 --> 00:09:03,880
Speaker 1: are seeking to do this. Oh my gosh, Josh Holly

166
00:09:03,960 --> 00:09:05,920
Speaker 1: and John Austin don't tend to agree on a lot.

167
00:09:05,960 --> 00:09:09,480
Speaker 1: But you know, look they're all pursuing, uh this, this

168
00:09:09,679 --> 00:09:12,120
Speaker 1: same item that you are. Shouldn't you all get in

169
00:09:12,160 --> 00:09:14,640
Speaker 1: a room and craft a big bill that could pass

170
00:09:14,679 --> 00:09:18,240
Speaker 1: with bipartisan support. Yeah, I think right now the pushes

171
00:09:18,320 --> 00:09:20,680
Speaker 1: to try to really get you get leadership of both

172
00:09:20,679 --> 00:09:22,960
Speaker 1: parties in the bids doing this together. And and to

173
00:09:23,040 --> 00:09:25,840
Speaker 1: be clear, there are some really tricky items, um that

174
00:09:25,880 --> 00:09:27,760
Speaker 1: I think are unique to members of Congress. They need

175
00:09:27,800 --> 00:09:30,800
Speaker 1: to be thought with. You know, we unlike the White House.

176
00:09:30,960 --> 00:09:33,160
Speaker 1: You know, you know, most of us have spouses who

177
00:09:33,160 --> 00:09:34,840
Speaker 1: were engaged in their lines of work, and some of

178
00:09:34,880 --> 00:09:37,080
Speaker 1: us have spouses that are engaged in in you know,

179
00:09:37,120 --> 00:09:39,880
Speaker 1: working in the markets. That's a little different, right, How

180
00:09:39,920 --> 00:09:41,840
Speaker 1: do we think about that what do we do for

181
00:09:41,960 --> 00:09:44,480
Speaker 1: people who come in who own some stocks before should

182
00:09:44,480 --> 00:09:45,800
Speaker 1: they be allowed to sell them? What do we do

183
00:09:45,840 --> 00:09:48,920
Speaker 1: for illiquid securities when a lot of members of Congress

184
00:09:48,920 --> 00:09:51,520
Speaker 1: are small business owners in their own right, and so

185
00:09:51,559 --> 00:09:53,960
Speaker 1: I think we need to have a conversation. My personal

186
00:09:54,000 --> 00:09:56,960
Speaker 1: feeling is that you know the bill that that you

187
00:09:56,960 --> 00:09:59,959
Speaker 1: know that I've co sponsored with Congressman Christian Morphy, Appligail's

188
00:10:00,040 --> 00:10:02,959
Speaker 1: and Biggers bill, you know, the Holy and Awsol. These

189
00:10:02,960 --> 00:10:05,480
Speaker 1: are all good starts, but we really need to have

190
00:10:05,520 --> 00:10:08,000
Speaker 1: the conversation. And let's let's get the committees to go

191
00:10:08,120 --> 00:10:10,800
Speaker 1: through and go through the order to think about how

192
00:10:10,800 --> 00:10:12,400
Speaker 1: we work through these issues. And so we need a

193
00:10:12,400 --> 00:10:15,040
Speaker 1: finer point on some of these. Obviously, are you concerned

194
00:10:15,080 --> 00:10:21,280
Speaker 1: that doesn't doesn't support this, Congressman Um, I am. I

195
00:10:21,320 --> 00:10:23,680
Speaker 1: have every confidence that you'll listen to the arguments and

196
00:10:23,720 --> 00:10:25,840
Speaker 1: thinks through it and we'll take it from there. You know,

197
00:10:26,160 --> 00:10:28,559
Speaker 1: most of this conversation is happening right now in the media,

198
00:10:28,600 --> 00:10:31,000
Speaker 1: which is which is not the most effective way to

199
00:10:31,000 --> 00:10:33,880
Speaker 1: have these conversations. But I'm sure, I'm sure we'll get

200
00:10:33,920 --> 00:10:36,240
Speaker 1: through them. Yeah, We'll keep talking about until something happens

201
00:10:36,280 --> 00:10:38,080
Speaker 1: I guess we only have a minute left. Congressmen, I

202
00:10:38,080 --> 00:10:40,120
Speaker 1: have to ask you, as a member of Financial Services,

203
00:10:40,640 --> 00:10:43,640
Speaker 1: UH your thoughts on the Federal Reserve this week. It's

204
00:10:43,640 --> 00:10:45,320
Speaker 1: a question I've been asking a lot of folks and

205
00:10:45,320 --> 00:10:47,360
Speaker 1: whether you're concerned as we enter now I know we

206
00:10:47,400 --> 00:10:49,280
Speaker 1: don't expect a hike tomorrow, it as we enter a

207
00:10:49,360 --> 00:10:52,320
Speaker 1: tightening regime, if you're concerned about going too far that

208
00:10:52,400 --> 00:10:54,760
Speaker 1: we could slow the economy into a recession while we're

209
00:10:54,760 --> 00:11:01,720
Speaker 1: at it, UM, I I will be interested to see

210
00:11:01,760 --> 00:11:05,520
Speaker 1: what they say. You know, as we've looked at you know,

211
00:11:05,600 --> 00:11:08,480
Speaker 1: what's happening and why we're seeing some of the inflationary

212
00:11:08,480 --> 00:11:11,480
Speaker 1: professor in the economy right now. Most of the data

213
00:11:11,520 --> 00:11:14,199
Speaker 1: that we've seen is that this is overwhelmingly driven by

214
00:11:14,320 --> 00:11:17,720
Speaker 1: supply constraints rather than overheating demand. You know, we had

215
00:11:17,760 --> 00:11:22,640
Speaker 1: a lack of semi conductors that UM and should they

216
00:11:22,679 --> 00:11:26,160
Speaker 1: hike in March? Congressman, I'm sorry we're out of time. Well,

217
00:11:26,200 --> 00:11:28,240
Speaker 1: the nervousness I have is that if it's a supply

218
00:11:28,320 --> 00:11:30,120
Speaker 1: diffin constraint, we want to make sure that business have

219
00:11:30,120 --> 00:11:33,600
Speaker 1: access to capital. To him. If it's a demand den constraint,

220
00:11:33,640 --> 00:11:35,440
Speaker 1: we want to raise interest rates and cool dat they

221
00:11:35,480 --> 00:11:38,880
Speaker 1: don't go too far. Congressman Shawn cast and thank you,

222
00:11:39,120 --> 00:11:42,640
Speaker 1: Democrat from Illinois on sound On, I'm Joe Matthew. This

223
00:11:42,720 --> 00:11:50,760
Speaker 1: is Bloomberg. This is Bloomberg. Sound On with Joe Matthew

224
00:11:51,240 --> 00:11:56,480
Speaker 1: on Bloomberg Radio. There is so much good information about

225
00:11:56,520 --> 00:11:59,520
Speaker 1: the Russia Ukraine standoff. On the terminal. The first thing

226
00:11:59,559 --> 00:12:01,400
Speaker 1: I've been doing on each day this week type the

227
00:12:01,480 --> 00:12:03,520
Speaker 1: letter N and the word Ukraine. You don't have to

228
00:12:03,559 --> 00:12:06,640
Speaker 1: do any more than that. The Bloomberg Ukraine update will

229
00:12:06,679 --> 00:12:09,719
Speaker 1: pop up the headline right now. Biden says he might

230
00:12:09,840 --> 00:12:13,720
Speaker 1: sanction Putin in attack. We played the cut for you

231
00:12:13,720 --> 00:12:15,800
Speaker 1: at the beginning of the hour. Here the President with

232
00:12:15,840 --> 00:12:18,719
Speaker 1: reporters and a little jaunt outside the White House as

233
00:12:18,720 --> 00:12:23,320
Speaker 1: he considered sanctioning Vladimir Putin in case Russia attacks Ukraine. Meanwhile,

234
00:12:23,360 --> 00:12:26,800
Speaker 1: as I read, Kremlin spokesman warns a US move to

235
00:12:26,840 --> 00:12:31,480
Speaker 1: put as many as troops on alert. Quote exacerbates tensions.

236
00:12:32,640 --> 00:12:36,040
Speaker 1: Let's exacerbate this more by assembling the panel. Bloomberg Politics

237
00:12:36,040 --> 00:12:40,400
Speaker 1: contributors Jeannie Schanzano and Rick Davis are with us. Genie.

238
00:12:40,440 --> 00:12:42,840
Speaker 1: Interesting comments from the President's today that he went so

239
00:12:42,880 --> 00:12:46,240
Speaker 1: far as to say, following that word from a Kremlin

240
00:12:46,360 --> 00:12:50,400
Speaker 1: spokesman that he had no interest in sending troops into Ukraine.

241
00:12:50,400 --> 00:12:52,640
Speaker 1: He really tried to stop down and make, you know,

242
00:12:52,960 --> 00:12:56,400
Speaker 1: to separate the idea of sending troops to Eastern Europe

243
00:12:56,400 --> 00:12:59,280
Speaker 1: to reinforce to defend our NATO allies as opposed to

244
00:12:59,360 --> 00:13:04,080
Speaker 1: crossing into Ukraine. Was it worth making that distinction. He

245
00:13:04,160 --> 00:13:06,520
Speaker 1: did try to make that. It's something he has said before,

246
00:13:06,559 --> 00:13:08,640
Speaker 1: but I thought it was the strongest statement to date

247
00:13:08,720 --> 00:13:10,720
Speaker 1: that that is not on the table, at least at

248
00:13:10,760 --> 00:13:14,120
Speaker 1: this point. But I think it does raise the larger question,

249
00:13:14,320 --> 00:13:18,640
Speaker 1: which is, again, what is a unified NATO response going

250
00:13:18,720 --> 00:13:21,719
Speaker 1: to look like and what would they respond to. Will

251
00:13:21,760 --> 00:13:24,520
Speaker 1: they only respond if there is a direct invasion in

252
00:13:24,679 --> 00:13:27,360
Speaker 1: Ukraine or are they going to respond if there are

253
00:13:27,400 --> 00:13:30,880
Speaker 1: other types of milder incursions, which gets us back to

254
00:13:30,920 --> 00:13:33,960
Speaker 1: the president's press conference. So I don't think that that

255
00:13:34,080 --> 00:13:35,600
Speaker 1: is very clear, and I think a lot of it

256
00:13:35,640 --> 00:13:38,520
Speaker 1: has to do with the fact that there isn't cohesive

257
00:13:38,559 --> 00:13:42,080
Speaker 1: strategy or agreement coming out of our European allies, and

258
00:13:42,160 --> 00:13:44,600
Speaker 1: that's really what the focus of Anthony B. Lincoln and

259
00:13:44,760 --> 00:13:47,960
Speaker 1: President Biden have got to be and have been no

260
00:13:48,080 --> 00:13:50,480
Speaker 1: boots on the ground at this point. But what do

261
00:13:50,559 --> 00:13:53,240
Speaker 1: we do and when? Is still the big question. Rick,

262
00:13:53,280 --> 00:13:56,719
Speaker 1: what do you make of this idea of sanctioning Vladimir

263
00:13:56,760 --> 00:14:00,800
Speaker 1: Putin personally? Didn't you actually ask for that to have? Yes?

264
00:14:00,880 --> 00:14:02,880
Speaker 1: I think that this is the issue. We've got to

265
00:14:02,920 --> 00:14:05,520
Speaker 1: go after Putin and we go after where it hurts him.

266
00:14:05,600 --> 00:14:08,559
Speaker 1: And in this case, I think the recommendations by a

267
00:14:08,559 --> 00:14:11,280
Speaker 1: long time Putin nemesis, Bill Browner is a great idea,

268
00:14:11,320 --> 00:14:14,200
Speaker 1: which is go after the oligarchs that are holding his cash.

269
00:14:14,559 --> 00:14:16,960
Speaker 1: I mean, Putin smart enough not to be exposed financially.

270
00:14:17,120 --> 00:14:20,920
Speaker 1: But uh, he suggests picked the top twenty oligarchs and

271
00:14:20,960 --> 00:14:23,880
Speaker 1: sanctioned five of them today. And I agree, I mean,

272
00:14:23,880 --> 00:14:26,880
Speaker 1: why aren't we sanctioning Russia today? I mean, they are

273
00:14:26,960 --> 00:14:33,480
Speaker 1: destabilizing the entire free market economy around the world. They're destabilizing, uh,

274
00:14:33,520 --> 00:14:36,720
Speaker 1: you know, social justice. They have thou hundreds of thousands

275
00:14:36,760 --> 00:14:39,080
Speaker 1: of troops on a border of a sovereign nation. What

276
00:14:39,240 --> 00:14:41,680
Speaker 1: why would we delay? So this is a great question.

277
00:14:41,920 --> 00:14:45,040
Speaker 1: I suspect you you might have a suspected answer, though, Rick,

278
00:14:45,120 --> 00:14:48,920
Speaker 1: is it because we're afraid to provoke Vladimir Putin. You

279
00:14:49,040 --> 00:14:51,200
Speaker 1: have to treat Putin like Putin treats the rest of

280
00:14:51,200 --> 00:14:54,400
Speaker 1: the world. He's provoking us, you have to provoke him back.

281
00:14:54,440 --> 00:14:56,720
Speaker 1: I mean, like the reality is, I can't tell you

282
00:14:56,720 --> 00:14:59,120
Speaker 1: how many experts I have to listen to all day

283
00:14:59,120 --> 00:15:01,480
Speaker 1: long who it's saying, Oh, it's a done deal, he's

284
00:15:01,480 --> 00:15:05,080
Speaker 1: got invade now, Well, what make it cost him something?

285
00:15:05,280 --> 00:15:07,240
Speaker 1: I mean, and he only is going to invade in

286
00:15:07,280 --> 00:15:11,040
Speaker 1: that it doesn't hurt him, either financially or politically. And

287
00:15:11,080 --> 00:15:12,920
Speaker 1: the other way to start going at him is to

288
00:15:13,000 --> 00:15:16,720
Speaker 1: start setting messages into the Russian population that he's putting

289
00:15:16,760 --> 00:15:19,440
Speaker 1: them at risk. And that's when he'll really start freaking

290
00:15:19,440 --> 00:15:21,840
Speaker 1: out when he knows that we're going to play politics

291
00:15:21,840 --> 00:15:23,640
Speaker 1: in his own country. Is Rick in the right place

292
00:15:23,720 --> 00:15:26,000
Speaker 1: on this, genie? Why not sanction now? What are we

293
00:15:26,080 --> 00:15:29,640
Speaker 1: actually waiting for? We could sanction now? And they're trying

294
00:15:29,720 --> 00:15:32,880
Speaker 1: to run this sort of dual strategy, right They're trying

295
00:15:32,920 --> 00:15:35,440
Speaker 1: to make it clear that he will be hit back

296
00:15:35,480 --> 00:15:38,320
Speaker 1: with sanctions and otherwise, to Rick's point, that could be now,

297
00:15:38,360 --> 00:15:40,520
Speaker 1: it could be in the future. But they're also trying

298
00:15:40,560 --> 00:15:43,280
Speaker 1: to offer him some kind of off ramp. What can

299
00:15:43,320 --> 00:15:46,840
Speaker 1: the West provide that he might be willing to use

300
00:15:46,880 --> 00:15:49,280
Speaker 1: as sort of a face safing mechanism, if you will.

301
00:15:49,520 --> 00:15:52,560
Speaker 1: And let's not forget there are other options at Putin's disposal.

302
00:15:52,600 --> 00:15:54,960
Speaker 1: One of the things that's being talked about. He's talked

303
00:15:54,960 --> 00:15:57,920
Speaker 1: about and other people have does he put Russian troops

304
00:15:57,960 --> 00:16:01,240
Speaker 1: or forces in places in the West, venezuel Island, Nicaragua, Cuba.

305
00:16:01,520 --> 00:16:04,720
Speaker 1: Those are all options at his disposal. And we've got

306
00:16:04,720 --> 00:16:06,600
Speaker 1: to have a response, and it's got to be a

307
00:16:06,600 --> 00:16:10,840
Speaker 1: concerted allied response to all of these sort of tactics

308
00:16:10,840 --> 00:16:13,520
Speaker 1: that he could use. So shure sanction now, but you've

309
00:16:13,560 --> 00:16:16,400
Speaker 1: got to offer him something to encourage him not to

310
00:16:16,560 --> 00:16:19,280
Speaker 1: enter right before the Olympics or ever. Rick Bloomberg is

311
00:16:19,320 --> 00:16:23,480
Speaker 1: reporting that Emmanuel Macrons Russia advisor, is in Moscow right

312
00:16:23,480 --> 00:16:28,200
Speaker 1: now to present proposals for de escalation. The new Chancellor

313
00:16:28,240 --> 00:16:33,840
Speaker 1: of Germany, Olaf Schultz, will host mccrown in Berlin this evening.

314
00:16:34,880 --> 00:16:36,360
Speaker 1: Is this about to be? Is this some sort of

315
00:16:36,400 --> 00:16:39,320
Speaker 1: work around the United States that our European allies are

316
00:16:39,320 --> 00:16:41,080
Speaker 1: in the middle of. You know, I don't think it's

317
00:16:41,120 --> 00:16:42,920
Speaker 1: a work around the United States. I think that the

318
00:16:43,000 --> 00:16:45,920
Speaker 1: United States has been pushing Europe to get in the

319
00:16:45,960 --> 00:16:48,880
Speaker 1: game right. It's one thing for you know, Joe Biden's

320
00:16:48,880 --> 00:16:50,920
Speaker 1: standard press conference and talk about how he's got a

321
00:16:51,000 --> 00:16:54,240
Speaker 1: unified European approach. But it doesn't hurt us at all

322
00:16:54,360 --> 00:16:58,360
Speaker 1: to have European turning the screws on well. I mean,

323
00:16:58,400 --> 00:17:01,560
Speaker 1: that's probably why mccrowns go onto Germany because the one

324
00:17:01,640 --> 00:17:06,840
Speaker 1: holdout who's who's dependent upon Russian hydrocarbons is Germany, and

325
00:17:06,960 --> 00:17:10,439
Speaker 1: Germany's withholding approval for certain weapons systems are going into

326
00:17:10,520 --> 00:17:13,240
Speaker 1: the Ukraine. And I'm sure this is one of the

327
00:17:13,280 --> 00:17:15,560
Speaker 1: things that they're gonna be talking about, is let's release

328
00:17:15,600 --> 00:17:18,359
Speaker 1: those things. Let's get defensive weapons into the Ukraine, and

329
00:17:18,480 --> 00:17:21,040
Speaker 1: let's talk about how we can satisfy your need for

330
00:17:21,119 --> 00:17:24,960
Speaker 1: car you know, hydrocarbon's oil and gas without having to

331
00:17:25,080 --> 00:17:28,280
Speaker 1: bow bow down to Vladimir Putin. We talked about this

332
00:17:28,320 --> 00:17:31,080
Speaker 1: a bit yesterday, Jeannie. Does Emmanuel Macron have a dream

333
00:17:31,160 --> 00:17:33,199
Speaker 1: of coming out of this victorious that he was the

334
00:17:33,200 --> 00:17:36,080
Speaker 1: one who solved it? Oh, I'm sure he has that dream.

335
00:17:36,240 --> 00:17:38,760
Speaker 1: I'm sure they all have that dream. But but I

336
00:17:38,760 --> 00:17:41,360
Speaker 1: would say, listen to the Ukrainian Foreign Minister today when

337
00:17:41,400 --> 00:17:45,359
Speaker 1: he says this is about US leadership. If US leadership

338
00:17:45,560 --> 00:17:48,000
Speaker 1: fails here, it is going to be a message to

339
00:17:48,040 --> 00:17:51,240
Speaker 1: our detractors, democratic detractors around the world, not just Putin

340
00:17:51,359 --> 00:17:54,479
Speaker 1: but also China as they look at lessons from this

341
00:17:54,560 --> 00:17:56,560
Speaker 1: as to what they're gonna do with Taiwan, and as

342
00:17:56,560 --> 00:17:59,240
Speaker 1: we think about semiconductors. That's a big issue for the

343
00:17:59,320 --> 00:18:01,800
Speaker 1: United States. For that reason and many others. I'm just

344
00:18:01,880 --> 00:18:03,760
Speaker 1: struck by how much we have come to rely on

345
00:18:03,800 --> 00:18:06,080
Speaker 1: the insights of Genie and Rick, and we're lucky to

346
00:18:06,119 --> 00:18:08,840
Speaker 1: have them in moments like these. They'll be back later

347
00:18:08,920 --> 00:18:11,720
Speaker 1: on this hour. Our panel on Bloomberg Sound On, we

348
00:18:11,800 --> 00:18:15,640
Speaker 1: turned to the FED and inflation next meeting raps tomorrow.

349
00:18:15,680 --> 00:18:18,520
Speaker 1: We'll talk about it with Columbia law professor Katherine Judge.

350
00:18:18,800 --> 00:18:25,040
Speaker 1: I'm Joe Matthew. This is Bloomberg. Some really smart writing

351
00:18:25,440 --> 00:18:29,000
Speaker 1: by our team at Bloomberg Intelligence. If you're preparing for

352
00:18:29,800 --> 00:18:33,960
Speaker 1: the big results in the FED meeting here into Charlie's point,

353
00:18:34,000 --> 00:18:37,280
Speaker 1: we do love Fed Wednesdays around here at Bloomberg. Tomorrow

354
00:18:37,320 --> 00:18:39,119
Speaker 1: is going to be a ride. As I see the

355
00:18:39,119 --> 00:18:43,640
Speaker 1: headline Federal reserve to signal March hike, but not fifty

356
00:18:43,800 --> 00:18:47,600
Speaker 1: basis points and along our chief economist writing on the

357
00:18:47,680 --> 00:18:50,120
Speaker 1: terminal where you can find a lot more. Let's bring

358
00:18:50,119 --> 00:18:52,600
Speaker 1: in Katherine Judge, Columbia law professor, to talk a little

359
00:18:52,600 --> 00:18:54,720
Speaker 1: bit more about what we expect here. Does that sound

360
00:18:55,119 --> 00:18:57,840
Speaker 1: like the way this goes tomorrow, Katherine? And how important

361
00:18:57,880 --> 00:19:00,280
Speaker 1: are the words that will be chosen in this eatement.

362
00:19:00,320 --> 00:19:03,120
Speaker 1: I suspect it's going to look quite different. It does

363
00:19:03,160 --> 00:19:06,240
Speaker 1: sound quite likely, and again I think I think people

364
00:19:06,240 --> 00:19:08,720
Speaker 1: are going to be really trying to purse this statement.

365
00:19:09,160 --> 00:19:11,479
Speaker 1: There is still the expectation they're going to want to

366
00:19:11,520 --> 00:19:14,919
Speaker 1: complete the taper before they raise rates, which would make

367
00:19:14,960 --> 00:19:17,600
Speaker 1: them on track to do that in March. And there

368
00:19:17,680 --> 00:19:19,439
Speaker 1: is an overall sense they're going to want to do

369
00:19:19,480 --> 00:19:23,120
Speaker 1: that incrementally a quarter basis at each of their their

370
00:19:23,200 --> 00:19:27,240
Speaker 1: upcoming meetings in two for three or four rate hikes. Um.

371
00:19:27,320 --> 00:19:30,040
Speaker 1: But we also are seeing three months in a row

372
00:19:30,119 --> 00:19:34,560
Speaker 1: of higher than had been anticipated inflation. We're seeing a

373
00:19:34,600 --> 00:19:37,960
Speaker 1: lot of public concern and we have heard R. Powell

374
00:19:37,960 --> 00:19:40,680
Speaker 1: say numerous times that they're going to respond to new

375
00:19:40,760 --> 00:19:44,159
Speaker 1: data as it becomes available. So that's that's where we

376
00:19:44,200 --> 00:19:46,880
Speaker 1: have a little bit of uncertainty over whether they might accelerate.

377
00:19:48,400 --> 00:19:51,320
Speaker 1: So do you expect to hear uh specifics about the

378
00:19:51,359 --> 00:19:53,960
Speaker 1: size of the hike in March. As we mentioned, they'll

379
00:19:54,000 --> 00:19:57,040
Speaker 1: be kind of backing off from this fifty basis point

380
00:19:57,119 --> 00:19:59,439
Speaker 1: view that some have been kind of hoping for. To

381
00:19:59,440 --> 00:20:03,199
Speaker 1: be honest, it also emphasizing the uncertainty that we have

382
00:20:03,359 --> 00:20:07,439
Speaker 1: here the downside risks to growth exactly. I mean, I

383
00:20:07,480 --> 00:20:09,919
Speaker 1: think what they are going to want to do is

384
00:20:10,880 --> 00:20:14,800
Speaker 1: to convey to the markets, to convey more broadly to

385
00:20:14,880 --> 00:20:19,880
Speaker 1: the American public that they are aware of the pain

386
00:20:19,960 --> 00:20:23,440
Speaker 1: that the inflation we've seen is causing, they are responsive

387
00:20:23,480 --> 00:20:25,200
Speaker 1: to it, and that they are on top of it.

388
00:20:25,720 --> 00:20:29,480
Speaker 1: At the same time, they want to retain some flexibility.

389
00:20:29,560 --> 00:20:33,280
Speaker 1: So there's going to be this very difficult path of

390
00:20:33,640 --> 00:20:37,320
Speaker 1: trying to create a soft land ink here, and that

391
00:20:37,400 --> 00:20:41,280
Speaker 1: does me maintaining some flexibility to respond to new indicators,

392
00:20:41,680 --> 00:20:46,760
Speaker 1: will also trying to provide enough clarity that they can

393
00:20:46,800 --> 00:20:50,760
Speaker 1: calm rather than to panics those sort of paying attention

394
00:20:50,800 --> 00:20:52,520
Speaker 1: to those words. Now, that's what you think they're going

395
00:20:52,560 --> 00:20:54,880
Speaker 1: to do, right as opposed to what you want them

396
00:20:54,880 --> 00:20:57,080
Speaker 1: to do. What do you make of the Bill Ackman view,

397
00:20:57,320 --> 00:21:00,320
Speaker 1: the shock and awe, come on in there and rise

398
00:21:00,359 --> 00:21:03,720
Speaker 1: everybody in March and spook this market to get ahold

399
00:21:03,880 --> 00:21:07,119
Speaker 1: of inflation. Of course, well, I mean, you know there

400
00:21:07,280 --> 00:21:09,840
Speaker 1: there's a lot of people out there, Bill Ackman among them,

401
00:21:09,840 --> 00:21:14,040
Speaker 1: probably among the most local, taking that view. And I

402
00:21:14,040 --> 00:21:16,119
Speaker 1: think the key is to remember the defense is a

403
00:21:16,280 --> 00:21:20,639
Speaker 1: number of ways of signaling that it it understands the

404
00:21:20,760 --> 00:21:23,920
Speaker 1: risks and that it's committed to tightening to the degree

405
00:21:24,119 --> 00:21:28,800
Speaker 1: possible without necessarily doing a fifty basis point raise right

406
00:21:28,840 --> 00:21:32,080
Speaker 1: in March. And that's where the communication strategy is going

407
00:21:32,119 --> 00:21:36,040
Speaker 1: to be really important as well. Again, they want to

408
00:21:36,040 --> 00:21:39,679
Speaker 1: make sure everybody knows they're taking inflation seriously. But you

409
00:21:39,680 --> 00:21:41,600
Speaker 1: don't want to induce a recession. You don't want to

410
00:21:41,600 --> 00:21:45,120
Speaker 1: introduce too much fear or deviate too much from what

411
00:21:45,320 --> 00:21:49,160
Speaker 1: folks are currently expecting. Let's rewind to the big Confirmation hearing.

412
00:21:49,160 --> 00:21:52,160
Speaker 1: The reconfirmation hearing to be exact of J. Powell when

413
00:21:52,160 --> 00:21:56,119
Speaker 1: he spoke to the the effort to fight inflation, and

414
00:21:56,160 --> 00:21:59,320
Speaker 1: will hear his words, here's J Powell. Our policy has

415
00:21:59,359 --> 00:22:02,840
Speaker 1: been adapting to this um you know, for some months.

416
00:22:04,000 --> 00:22:06,800
Speaker 1: But will if if, if inflation is going to last

417
00:22:06,840 --> 00:22:09,920
Speaker 1: longer than that, would that would potentially imply more risk

418
00:22:09,960 --> 00:22:13,560
Speaker 1: of its persistence and ultimately becoming entrenched, and and our

419
00:22:13,600 --> 00:22:17,560
Speaker 1: policy will respond accordingly. So they're on this, Catherine, and

420
00:22:17,600 --> 00:22:20,480
Speaker 1: I'm thinking back to the old days, the Greenspan days.

421
00:22:20,520 --> 00:22:23,080
Speaker 1: In fact, when was the last time, I think, I know,

422
00:22:23,160 --> 00:22:25,720
Speaker 1: by the way, and I'm it's making me feel pretty old.

423
00:22:26,160 --> 00:22:28,520
Speaker 1: When was the last time we had a surprise hike?

424
00:22:29,280 --> 00:22:31,600
Speaker 1: You know, when you see the headline cross the terminal.

425
00:22:31,640 --> 00:22:34,080
Speaker 1: Oh my god, it's not a FED meeting. A surprise

426
00:22:34,160 --> 00:22:38,600
Speaker 1: hike between meetings. Wouldn't that do a number on inflation? Yeah?

427
00:22:38,680 --> 00:22:41,119
Speaker 1: I was gonna say no. But between as you well know,

428
00:22:41,280 --> 00:22:45,119
Speaker 1: the between meeting changes either way are incredibly rare, and

429
00:22:45,240 --> 00:22:47,000
Speaker 1: the hike is actually good question me. The last time

430
00:22:47,000 --> 00:22:48,760
Speaker 1: we saw the between meeting cut was of course, in

431
00:22:48,840 --> 00:22:52,840
Speaker 1: the lead up to the two and seven two financial crisis,

432
00:22:52,840 --> 00:22:55,000
Speaker 1: so two thousand and seven when they were actually trying

433
00:22:55,040 --> 00:22:57,480
Speaker 1: to do the opposite. They were trying to to to

434
00:22:57,600 --> 00:23:01,960
Speaker 1: protect kind of bank balance sheets for the unexpected dysfunction

435
00:23:02,000 --> 00:23:04,520
Speaker 1: that we had seen in the market. But but the hike,

436
00:23:04,600 --> 00:23:07,680
Speaker 1: I I'm actually trying to jump on the recollection. Sorry

437
00:23:07,720 --> 00:23:10,520
Speaker 1: there that well, I mean, but wouldn't that be a mechanism?

438
00:23:10,520 --> 00:23:12,359
Speaker 1: Are we out of that business now? The FETE is

439
00:23:12,800 --> 00:23:14,760
Speaker 1: just in a different place when it comes to telegraphing

440
00:23:14,760 --> 00:23:17,520
Speaker 1: its moves. I think it's in quite a different place.

441
00:23:17,600 --> 00:23:23,240
Speaker 1: I think they really see communication policy as an iterative process,

442
00:23:23,280 --> 00:23:25,320
Speaker 1: and part of what you heard in the clip that

443
00:23:25,320 --> 00:23:28,560
Speaker 1: you just played from Powell was really an effort to

444
00:23:28,560 --> 00:23:31,280
Speaker 1: to engineer, as they said, a little bit of that flexibility,

445
00:23:31,600 --> 00:23:35,000
Speaker 1: to continue to respond to new information, to show that

446
00:23:35,560 --> 00:23:38,640
Speaker 1: they want to provide clear, clear guidance. At the same time,

447
00:23:38,960 --> 00:23:43,199
Speaker 1: they need flexibility because we don't have a roadmap for

448
00:23:43,320 --> 00:23:46,080
Speaker 1: what this economic recovery is going to look like. And

449
00:23:46,119 --> 00:23:49,240
Speaker 1: that's the balance that they are they're trying to to

450
00:23:49,359 --> 00:23:51,800
Speaker 1: engineer right now. But on the whole, when we think

451
00:23:51,800 --> 00:23:55,879
Speaker 1: back actually too for anaky with the taper tantrum, we

452
00:23:56,000 --> 00:23:59,320
Speaker 1: see that there's far more concerned, far more attention to

453
00:23:59,359 --> 00:24:06,080
Speaker 1: the fact that that unexpected moves can also invite undesirable disruptions,

454
00:24:06,119 --> 00:24:10,320
Speaker 1: and so there's an effort here to to telegraph as

455
00:24:10,359 --> 00:24:13,760
Speaker 1: clearly as possible while retaining at least some of the

456
00:24:13,840 --> 00:24:17,440
Speaker 1: needed flexibility. Katherine, this is Bloomberg, but it's a political show,

457
00:24:17,440 --> 00:24:20,400
Speaker 1: and we talked to politicians almost on a daily basis

458
00:24:20,440 --> 00:24:24,359
Speaker 1: here on Bloomberg. Sound on inflation comes up almost every day.

459
00:24:24,520 --> 00:24:27,080
Speaker 1: Republicans try to hang this around the President's neck, and

460
00:24:27,119 --> 00:24:30,399
Speaker 1: officials from the White House come on and constantly refer

461
00:24:30,560 --> 00:24:33,040
Speaker 1: to the FED when we ask them about inflation that

462
00:24:33,119 --> 00:24:35,120
Speaker 1: there's you know, and we're so lucky to have an

463
00:24:35,160 --> 00:24:38,360
Speaker 1: independent Fed and we're not standing in their way. That's

464
00:24:38,359 --> 00:24:40,640
Speaker 1: a lot of trust that they've put in the Central

465
00:24:40,680 --> 00:24:43,080
Speaker 1: Bank here. Does the Fed deserve it? Will they make

466
00:24:43,119 --> 00:24:46,200
Speaker 1: good on this without going too far pushing us into

467
00:24:46,240 --> 00:24:49,439
Speaker 1: a recession. I'm just gonna say to say that they trust.

468
00:24:49,480 --> 00:24:52,879
Speaker 1: I think partly it's also the institutional design that that

469
00:24:52,960 --> 00:24:56,639
Speaker 1: we have collectively created over decades at this point of

470
00:24:56,760 --> 00:25:01,040
Speaker 1: largely delegating the decisions regarding monitor Harry policy, which our

471
00:25:01,200 --> 00:25:05,040
Speaker 1: cordal inflation to the Federal Reserve, I do think there

472
00:25:05,119 --> 00:25:08,800
Speaker 1: is a separate political conversation happening where we're trying to

473
00:25:08,880 --> 00:25:12,960
Speaker 1: understand more broadly what might be contributing to price increases

474
00:25:13,400 --> 00:25:16,800
Speaker 1: that might be better addressed well, whether it's supply chains

475
00:25:16,920 --> 00:25:20,159
Speaker 1: or COVID or something altogether different. We'll be talking a

476
00:25:20,160 --> 00:25:23,000
Speaker 1: lot more about this tomorrow when we can actually parse

477
00:25:23,080 --> 00:25:26,520
Speaker 1: those words, as the professor mentioned, thanks to Columbia law

478
00:25:26,560 --> 00:25:30,040
Speaker 1: professor Katherine Judge, the panels back next. I'm Joe Matthew.

479
00:25:30,119 --> 00:25:36,880
Speaker 1: This is Bloomberg. This is Bloomberg sond on with Joe

480
00:25:37,000 --> 00:25:42,919
Speaker 1: Matthew on Bloomberg Radio. The captains of industry are on

481
00:25:42,920 --> 00:25:44,919
Speaker 1: their way back to the White House. You see the

482
00:25:44,960 --> 00:25:48,600
Speaker 1: invite list White House for tomorrow on the terminal. CEOs

483
00:25:48,600 --> 00:25:51,880
Speaker 1: of GM and Fort Mary Barra, Jim Farley, along with

484
00:25:51,920 --> 00:25:55,000
Speaker 1: Mark Bennioff, head of Salesforce dot Com, will be there,

485
00:25:55,040 --> 00:25:59,040
Speaker 1: along with executives from Microsoft, t I A A, all

486
00:25:59,160 --> 00:26:01,040
Speaker 1: joining with the President and ten of them in total

487
00:26:01,480 --> 00:26:07,280
Speaker 1: to make the case for build back Better, but build

488
00:26:07,280 --> 00:26:11,000
Speaker 1: back Better, Died You say, it's kind of like when

489
00:26:11,000 --> 00:26:12,679
Speaker 1: the hand pops out of the water at the end

490
00:26:12,720 --> 00:26:16,080
Speaker 1: of the horror movie. Maybe it's more like Monty Python,

491
00:26:17,000 --> 00:26:20,920
Speaker 1: I'm not dead yet. As they try to figure out

492
00:26:20,920 --> 00:26:24,560
Speaker 1: ways to get something out of build back Better. Maybe

493
00:26:24,600 --> 00:26:27,760
Speaker 1: not the comprehensive bit, but slicing it into little pieces

494
00:26:28,160 --> 00:26:30,960
Speaker 1: seems to be the direction we're going in here. Although

495
00:26:31,000 --> 00:26:34,880
Speaker 1: these CEOs aren't slicing anything. They want to have billions

496
00:26:34,880 --> 00:26:38,840
Speaker 1: of dollars to fight climate change and to social programs

497
00:26:38,880 --> 00:26:42,240
Speaker 1: like childcare and early education. To reassemble the panel see

498
00:26:42,240 --> 00:26:45,160
Speaker 1: how they feel about a Bloomberg Politics contributors Jeannie Chanzano

499
00:26:45,280 --> 00:26:48,360
Speaker 1: and Rick Davis. Is this a good look? Does this work? Wreck?

500
00:26:48,440 --> 00:26:50,480
Speaker 1: This president has done this quite a number of times,

501
00:26:50,480 --> 00:26:53,880
Speaker 1: bringing some very high profile CEOs to the White House,

502
00:26:53,920 --> 00:26:57,120
Speaker 1: sometimes virtually to make the case for legislation that doesn't

503
00:26:57,119 --> 00:27:00,280
Speaker 1: always go anywhere. Yeah, it is a funny contra press

504
00:27:00,320 --> 00:27:03,920
Speaker 1: because a lot of his party, the Democratic Party in Congress,

505
00:27:03,920 --> 00:27:06,200
Speaker 1: have taken an oath to sort of, you know, go

506
00:27:06,320 --> 00:27:09,440
Speaker 1: after all these big corporations, the larger the corporation, the bigger,

507
00:27:09,480 --> 00:27:12,080
Speaker 1: the enemy of the Democratic Party in Congress, and they're

508
00:27:12,080 --> 00:27:13,880
Speaker 1: all and so he wheels them all over the White

509
00:27:13,880 --> 00:27:16,280
Speaker 1: House and makes them all very uncomfortable because they want

510
00:27:16,320 --> 00:27:19,240
Speaker 1: they're out there attacking these guys or corporate packages, all

511
00:27:19,280 --> 00:27:21,840
Speaker 1: the you know, money in stock that the CEOs get.

512
00:27:22,040 --> 00:27:23,720
Speaker 1: And yet he's hob nobbing with him over in the

513
00:27:23,720 --> 00:27:26,080
Speaker 1: White House saying, hey, support what I'm trying to do

514
00:27:26,119 --> 00:27:28,280
Speaker 1: on the hill. And so it does create a bit

515
00:27:28,320 --> 00:27:31,119
Speaker 1: of a a counter to the messaging that you hear

516
00:27:31,160 --> 00:27:33,120
Speaker 1: off the Capitol Hill. But let me tell you, when

517
00:27:33,119 --> 00:27:35,480
Speaker 1: the President opens up the White House, that's what matters,

518
00:27:35,600 --> 00:27:38,560
Speaker 1: not what they're belly aching about on Capitol Hill. Does

519
00:27:38,600 --> 00:27:40,720
Speaker 1: it work, though, Genie, I guess is the point even

520
00:27:40,720 --> 00:27:43,600
Speaker 1: if there there might be a couple of questions, like

521
00:27:43,720 --> 00:27:45,760
Speaker 1: Rick is asking, and if you're going to break these

522
00:27:45,800 --> 00:27:47,840
Speaker 1: companies up or use them to pass your bill, which

523
00:27:47,880 --> 00:27:50,600
Speaker 1: isn't Well, you know, one name left off this list

524
00:27:50,680 --> 00:27:53,000
Speaker 1: is of course Joe Mansion, because nothing is going to

525
00:27:53,119 --> 00:27:55,879
Speaker 1: happen on Build Back Better without Joe Mansion there. And

526
00:27:55,960 --> 00:27:58,960
Speaker 1: so you know, the President has has you know, in

527
00:27:59,000 --> 00:28:01,840
Speaker 1: a bit of a predicat meant here because he said

528
00:28:02,080 --> 00:28:04,239
Speaker 1: last week he doesn't want to be seen as a

529
00:28:04,280 --> 00:28:07,080
Speaker 1: Senator in chief anymore. He wants to be seen as president.

530
00:28:07,359 --> 00:28:10,560
Speaker 1: He's trying to do that. But the focus is a

531
00:28:10,600 --> 00:28:13,400
Speaker 1: bill that has to go through Congress, and that means

532
00:28:13,440 --> 00:28:16,200
Speaker 1: has to go through Joe Mansion. So it's a bit

533
00:28:16,200 --> 00:28:18,960
Speaker 1: of a conundrum for the president in that regard. I

534
00:28:18,960 --> 00:28:21,280
Speaker 1: think this is what he wants to be talking about.

535
00:28:21,480 --> 00:28:25,640
Speaker 1: I wish he would talk more about the bipartisan Infrastructure Bill.

536
00:28:25,680 --> 00:28:27,560
Speaker 1: He's been trying to do some of that and tout

537
00:28:27,600 --> 00:28:30,480
Speaker 1: that achievement because it is big, it's a huge investment.

538
00:28:30,800 --> 00:28:33,200
Speaker 1: But I do think this is still for build back better,

539
00:28:33,280 --> 00:28:36,879
Speaker 1: a very uphill battle. Maybe they get one part of it,

540
00:28:36,920 --> 00:28:38,960
Speaker 1: but that's a big maybe, and that's gonna take Chuck

541
00:28:38,960 --> 00:28:42,960
Speaker 1: Schumer maybe seeking some you know, you know, seeking some

542
00:28:43,080 --> 00:28:45,360
Speaker 1: I don't know, some forgiveness if you will, from Joe

543
00:28:45,400 --> 00:28:48,400
Speaker 1: Mansion and trying to get back on the the you know,

544
00:28:48,560 --> 00:28:50,120
Speaker 1: on his good side and see if they can move

545
00:28:50,120 --> 00:28:52,200
Speaker 1: forward on that. Well, I would certainly understand Mary Barr

546
00:28:52,320 --> 00:28:54,320
Speaker 1: Jim Farley shown up to talk about the Chips Act

547
00:28:54,400 --> 00:28:56,760
Speaker 1: right that helps their business directly, Just getting back to

548
00:28:56,800 --> 00:29:00,160
Speaker 1: your point, uh Rick, Or are they Are they trying

549
00:29:00,240 --> 00:29:03,360
Speaker 1: to to take care of their own interests to to

550
00:29:03,440 --> 00:29:06,280
Speaker 1: make friends with the administration to be friendly on this

551
00:29:06,360 --> 00:29:09,680
Speaker 1: type of legislation and prevent a crackdown, or you know,

552
00:29:09,800 --> 00:29:11,880
Speaker 1: look it's good to have friends in Washington. Or do

553
00:29:11,920 --> 00:29:14,080
Speaker 1: they really believe in this that fighting climate change will

554
00:29:14,080 --> 00:29:16,640
Speaker 1: help their businesses? Well, I think they see it all

555
00:29:16,680 --> 00:29:19,960
Speaker 1: as good cover, right, regardless of their actual personal views

556
00:29:19,960 --> 00:29:23,960
Speaker 1: about climate and about the social safety net. UM these

557
00:29:23,960 --> 00:29:25,880
Speaker 1: are positive things for the company to do for their

558
00:29:25,920 --> 00:29:29,320
Speaker 1: own brands, and so I think that that probably drives

559
00:29:29,320 --> 00:29:31,760
Speaker 1: a lot of it. But like what happens when uh

560
00:29:31,800 --> 00:29:35,080
Speaker 1: an enterprising Bloomberg reporter sticks a camera and a microphone

561
00:29:35,080 --> 00:29:37,360
Speaker 1: in front of their face and say, hey, I thought

562
00:29:37,400 --> 00:29:39,400
Speaker 1: you guys were opposed of the way they were gonna

563
00:29:39,480 --> 00:29:42,440
Speaker 1: pay for Bill back better by raising corporate tax rates

564
00:29:42,680 --> 00:29:45,480
Speaker 1: and creating a minimum tax on profits. Why are you

565
00:29:45,480 --> 00:29:47,800
Speaker 1: at the White House promoting something you actually oppose the

566
00:29:47,840 --> 00:29:51,720
Speaker 1: revenue to pay for it. Well, the answer be, Jennie,

567
00:29:52,600 --> 00:29:54,520
Speaker 1: you know, I don't think that. I think that they

568
00:29:54,560 --> 00:29:57,400
Speaker 1: would say, we are supportive and we will look for alternatives.

569
00:29:57,440 --> 00:29:59,120
Speaker 1: I think they would work around it. But it is

570
00:29:59,160 --> 00:30:02,400
Speaker 1: a point well to aken because they certainly don't want

571
00:30:02,440 --> 00:30:05,800
Speaker 1: to see the corporate taxes and raised, nor do they

572
00:30:05,800 --> 00:30:09,040
Speaker 1: want to see taxes unwealthy people raised, quite frankly. So

573
00:30:09,320 --> 00:30:12,720
Speaker 1: it is a conundrum. But again, you have a massive

574
00:30:12,800 --> 00:30:17,320
Speaker 1: infusion of cash into infrastructure already that's been done. That

575
00:30:17,480 --> 00:30:19,560
Speaker 1: is good for business, It is good for everybody in

576
00:30:19,560 --> 00:30:21,800
Speaker 1: the United States, and that has got to be something

577
00:30:21,840 --> 00:30:24,240
Speaker 1: that the White House celebrates. I mentioned the Competition and

578
00:30:24,280 --> 00:30:26,640
Speaker 1: Innovation Act I believe that's the actual name of it.

579
00:30:26,720 --> 00:30:28,640
Speaker 1: You seeka is what we have come to call it.

580
00:30:29,080 --> 00:30:32,440
Speaker 1: Uh here in well there in Washington. I'm speaking to

581
00:30:32,480 --> 00:30:35,680
Speaker 1: you from New York. Uh. This is actually something that

582
00:30:35,680 --> 00:30:39,800
Speaker 1: that has fairly broad bipartisan support, right, not just competing

583
00:30:39,800 --> 00:30:42,600
Speaker 1: with China, but passing the Chips Act that is in

584
00:30:42,640 --> 00:30:47,320
Speaker 1: this fifty two billion dollars to help promote domestic manufacturing

585
00:30:47,440 --> 00:30:50,040
Speaker 1: of computer chips. If this passes, we saw the House

586
00:30:50,080 --> 00:30:52,840
Speaker 1: release its version today. It's already gone through the Senate.

587
00:30:53,320 --> 00:30:57,520
Speaker 1: If this passes, Rick, is this at the level that

588
00:30:57,600 --> 00:31:00,560
Speaker 1: the president needs to take victory to to to get

589
00:31:00,600 --> 00:31:04,040
Speaker 1: credit for getting something done in Washington? Yeah, I think

590
00:31:04,080 --> 00:31:06,400
Speaker 1: he needs a win. I think this is the shortest

591
00:31:06,560 --> 00:31:09,440
Speaker 1: route to getting a win on Capitol Hill. Um. Even

592
00:31:09,480 --> 00:31:12,000
Speaker 1: if it's not trillions of dollars, though doesn't happy trillions

593
00:31:12,040 --> 00:31:13,560
Speaker 1: of dollars. This is one that he will get in

594
00:31:13,600 --> 00:31:16,720
Speaker 1: a bipartisan fashion in pass the Senate in a bipartisan fashion.

595
00:31:16,960 --> 00:31:19,080
Speaker 1: If it's going to pass a House, there'll be Republicans

596
00:31:19,080 --> 00:31:21,480
Speaker 1: and support it and and and I think this is

597
00:31:21,520 --> 00:31:26,360
Speaker 1: a message to Joe Biden, the moderate bipartisan president who

598
00:31:26,480 --> 00:31:29,680
Speaker 1: is getting things done when he can find a bipartisan

599
00:31:29,760 --> 00:31:32,520
Speaker 1: pathway to doing it when he's tried to jam things

600
00:31:32,520 --> 00:31:35,200
Speaker 1: through on a on a party line basis only that's

601
00:31:35,200 --> 00:31:37,480
Speaker 1: what's hung him up on the hill. So I think

602
00:31:37,520 --> 00:31:41,000
Speaker 1: it's a great trend back to the center UH. And

603
00:31:41,000 --> 00:31:44,480
Speaker 1: and it's one of those things China competitiveness, that both

604
00:31:44,520 --> 00:31:46,719
Speaker 1: Republicans and Democrats can join together. And I think it's

605
00:31:46,720 --> 00:31:50,160
Speaker 1: a good way to reboot this administration's hill strategy after

606
00:31:50,160 --> 00:31:51,800
Speaker 1: all the failures of last year. And it comes on

607
00:31:51,840 --> 00:31:54,840
Speaker 1: the same day, Genie that the administration warned us that

608
00:31:54,920 --> 00:31:57,520
Speaker 1: the computer chip shortage is going to last, likely all

609
00:31:57,560 --> 00:31:59,160
Speaker 1: the way through the year. There was a thought that

610
00:31:59,240 --> 00:32:01,320
Speaker 1: this might start to loosen up halfway through the year,

611
00:32:01,360 --> 00:32:05,360
Speaker 1: but Gina Romando, the Commerce Secretary UH, says no, this

612
00:32:05,440 --> 00:32:08,040
Speaker 1: is likely to be a story. So do they need

613
00:32:08,080 --> 00:32:11,040
Speaker 1: to pass that now? They they do need to pass it.

614
00:32:11,080 --> 00:32:13,000
Speaker 1: And I think the big question here, I think is

615
00:32:13,080 --> 00:32:16,720
Speaker 1: also politically smart, because I do think it puts Republicans

616
00:32:16,720 --> 00:32:19,200
Speaker 1: in a bit of a predicament. They are supportive of

617
00:32:19,240 --> 00:32:21,640
Speaker 1: this when when you seek a pass the Senate. It

618
00:32:21,680 --> 00:32:24,440
Speaker 1: did with a big bipartisan vote. But the question now

619
00:32:24,520 --> 00:32:27,280
Speaker 1: is will Republicans help on a deal and let Biden

620
00:32:27,320 --> 00:32:29,800
Speaker 1: the Democrats get something done as we get closer to

621
00:32:29,840 --> 00:32:32,640
Speaker 1: a midterm election. So I think it is good politics

622
00:32:32,640 --> 00:32:35,280
Speaker 1: for Biden and the Democrats to push for this because

623
00:32:35,320 --> 00:32:38,080
Speaker 1: it puts Republicans in a position of either having to

624
00:32:38,120 --> 00:32:40,360
Speaker 1: go along with it and give them a win, or

625
00:32:40,480 --> 00:32:42,400
Speaker 1: it puts them in a position of having to say no.

626
00:32:42,840 --> 00:32:46,280
Speaker 1: Either way, that's good for Democrats and it's good for competition. Well,

627
00:32:46,360 --> 00:32:48,680
Speaker 1: let's get to the FED in our remaining moments here

628
00:32:48,680 --> 00:32:51,600
Speaker 1: your expectations for tomorrow. And I'm we're getting to this

629
00:32:51,680 --> 00:32:54,800
Speaker 1: differently than than some other Bloomberg programs do because we're

630
00:32:54,800 --> 00:32:57,360
Speaker 1: the political side of this. Rick, do you have a

631
00:32:57,440 --> 00:33:00,760
Speaker 1: sense of what that statement should say to help the

632
00:33:00,800 --> 00:33:04,880
Speaker 1: Biden administration get around this inflation issue, to give people

633
00:33:04,960 --> 00:33:07,920
Speaker 1: confidence that the FED is on it but also isn't

634
00:33:07,960 --> 00:33:10,800
Speaker 1: about to run the economy into the dirt. Yeah, I

635
00:33:10,840 --> 00:33:15,080
Speaker 1: think that um, if the Fed UM could somehow make

636
00:33:15,120 --> 00:33:19,560
Speaker 1: a point that UM, their fight against inflation is more

637
00:33:19,600 --> 00:33:22,760
Speaker 1: important to them than worrying about O Macron Because I

638
00:33:22,800 --> 00:33:25,000
Speaker 1: think one of the things that the public has gotten

639
00:33:25,080 --> 00:33:29,040
Speaker 1: used to is that people will do dramatic things on

640
00:33:29,280 --> 00:33:32,920
Speaker 1: the fight against this pandemic um and sometimes at the

641
00:33:32,960 --> 00:33:36,440
Speaker 1: detriment of the economy. And I think most voters I

642
00:33:36,520 --> 00:33:39,040
Speaker 1: certainly see in the polling data, want to see the

643
00:33:39,080 --> 00:33:43,240
Speaker 1: economy be the priority. They're already moving beyond O macron

644
00:33:43,400 --> 00:33:46,120
Speaker 1: as a problem in society, and so I think that

645
00:33:46,280 --> 00:33:48,080
Speaker 1: is a big pivot that the FED could say, you

646
00:33:48,120 --> 00:33:52,000
Speaker 1: know what, we're focused on inflation. We're gonna fight this thing. Um,

647
00:33:52,040 --> 00:33:54,040
Speaker 1: We're going to make sure that that that that we

648
00:33:54,080 --> 00:33:56,640
Speaker 1: do what we need to do, and and we're gonna

649
00:33:56,680 --> 00:33:58,800
Speaker 1: let kind of the O macron chips fall where they may.

650
00:33:59,200 --> 00:34:01,640
Speaker 1: And I think that's a that's a really important signal.

651
00:34:01,800 --> 00:34:06,800
Speaker 1: The COVID caveat UH has gotten them pretty far here, Jeanie.

652
00:34:06,880 --> 00:34:10,440
Speaker 1: They've been actually complimented for helping the country your j

653
00:34:10,560 --> 00:34:15,279
Speaker 1: Pale specifically in his reconfirmation hearing complimented repeatedly by lawmakers

654
00:34:15,280 --> 00:34:17,879
Speaker 1: for helping the country navigate the pandemic. Is it time

655
00:34:17,880 --> 00:34:20,960
Speaker 1: for them to turn away from it? They do deserve

656
00:34:21,120 --> 00:34:23,600
Speaker 1: all of that praise because they did and a you know,

657
00:34:24,680 --> 00:34:27,680
Speaker 1: a place where there's really not a big roadmap as

658
00:34:27,719 --> 00:34:29,839
Speaker 1: to how you do this, they did move us through it.

659
00:34:30,239 --> 00:34:32,160
Speaker 1: But I think what they have to do is they

660
00:34:32,200 --> 00:34:35,600
Speaker 1: have to let people know that they understand how difficult

661
00:34:35,640 --> 00:34:37,560
Speaker 1: this is. They're ready to respond to it, but they

662
00:34:37,600 --> 00:34:40,359
Speaker 1: also have to be careful because you never know if

663
00:34:40,360 --> 00:34:43,480
Speaker 1: there is going to be another wave of this pandemic.

664
00:34:43,760 --> 00:34:47,120
Speaker 1: So they've got to maintain for themselves the ability to respond.

665
00:34:47,239 --> 00:34:50,520
Speaker 1: God forbid, there is another deadly variant out there. We

666
00:34:50,560 --> 00:34:52,439
Speaker 1: hope we're at the end of this, but we don't

667
00:34:52,520 --> 00:34:54,319
Speaker 1: know that yet. So I think they have to sort

668
00:34:54,320 --> 00:34:57,120
Speaker 1: of run that tight rope as we go forward, of

669
00:34:57,200 --> 00:35:02,320
Speaker 1: responsiveness action, but also eating themselves room to maneuver should

670
00:35:02,360 --> 00:35:05,359
Speaker 1: they need to going forward. What's the Republican position on that?

671
00:35:05,400 --> 00:35:08,360
Speaker 1: What's the message then, Rick, If if there's a convincing statement,

672
00:35:08,440 --> 00:35:11,120
Speaker 1: let's say the market reacts pretty well, maybe Joe Biden

673
00:35:11,160 --> 00:35:13,439
Speaker 1: says a couple of good things. We're getting inflation under

674
00:35:13,480 --> 00:35:16,720
Speaker 1: control or arms around it. Do the Republicans keep beating

675
00:35:16,719 --> 00:35:19,360
Speaker 1: the drum on this issue? Yeah? I think the Republicans

676
00:35:19,360 --> 00:35:24,279
Speaker 1: see this is an incredibly important gift politically, Uh that

677
00:35:24,560 --> 00:35:27,839
Speaker 1: Democrats are in a trap around inflation. They're they're all

678
00:35:27,880 --> 00:35:29,919
Speaker 1: for the Fed doing something to improve it, but they're

679
00:35:29,960 --> 00:35:31,920
Speaker 1: not gonna let go of it. And they'll drive this

680
00:35:31,960 --> 00:35:35,239
Speaker 1: all the way down to November's election, because it's unlikely

681
00:35:35,360 --> 00:35:38,919
Speaker 1: that we're gonna have a clear victory against inflation by

682
00:35:38,920 --> 00:35:41,279
Speaker 1: the time those elections take place. Why are Democrats in

683
00:35:41,320 --> 00:35:43,600
Speaker 1: a trap if this is supposedly a global issue is

684
00:35:43,640 --> 00:35:46,880
Speaker 1: it's simply because they run the town. Absolutely. When you

685
00:35:46,920 --> 00:35:49,200
Speaker 1: are have the White House and Congress and there is

686
00:35:49,280 --> 00:35:52,720
Speaker 1: high inflation, it is a disaster for the party in charge,

687
00:35:52,760 --> 00:35:55,080
Speaker 1: and we all know that. So their best hope at

688
00:35:55,120 --> 00:35:57,680
Speaker 1: this point is to see if that can be curbed

689
00:35:57,760 --> 00:36:00,560
Speaker 1: before they get into November, and hope that Donald Trump

690
00:36:00,640 --> 00:36:02,880
Speaker 1: is front and center on everybody's minds when they go

691
00:36:02,920 --> 00:36:05,040
Speaker 1: into the polls. They'll probably still lose a bunch of

692
00:36:05,080 --> 00:36:07,319
Speaker 1: seats that way, but far better than if those two

693
00:36:07,400 --> 00:36:11,360
Speaker 1: things don't happen. Our panel Bloomberg Politics contributors Genie Chanzano

694
00:36:11,480 --> 00:36:14,360
Speaker 1: and Rick Davis, get you all set up for whatever

695
00:36:14,400 --> 00:36:16,120
Speaker 1: in the world is going to happen tomorrow on the

696
00:36:16,120 --> 00:36:18,600
Speaker 1: political front and on the FED front. We thank both

697
00:36:18,640 --> 00:36:21,279
Speaker 1: of you as always and will compare notes this time

698
00:36:21,320 --> 00:36:24,919
Speaker 1: tomorrow on what we learned. Be sure to hear our

699
00:36:25,880 --> 00:36:28,879
Speaker 1: FED coverage on our FED Wednesday. As Charlie Pellett mentioned

700
00:36:28,920 --> 00:36:31,040
Speaker 1: starts at one thirty New York time, right here on

701
00:36:31,080 --> 00:36:34,320
Speaker 1: Bloomberg Radio. I'm Joe Matthew this he's Bloomberg