1 00:00:02,520 --> 00:00:09,520 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. You're listening to the 2 00:00:09,560 --> 00:00:13,320 Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at 3 00:00:13,320 --> 00:00:16,520 Speaker 1: noon and five pm Eastern on Apple, Cocklay and Android 4 00:00:16,560 --> 00:00:19,960 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 5 00:00:20,000 --> 00:00:24,160 Speaker 1: you get your podcasts, or watch us live on YouTube. 6 00:00:24,560 --> 00:00:27,280 Speaker 2: Now the governing can begin, Simon Carroll, we got through 7 00:00:27,320 --> 00:00:28,040 Speaker 2: the formalities. 8 00:00:28,040 --> 00:00:29,080 Speaker 3: He can swear in the members. 9 00:00:29,080 --> 00:00:29,800 Speaker 4: Now listen. 10 00:00:29,800 --> 00:00:31,560 Speaker 5: He's got a feel relief, no doubt about it. But 11 00:00:31,640 --> 00:00:34,880 Speaker 5: Joe Matthew, I always wonder about politically, you know how 12 00:00:34,920 --> 00:00:36,880 Speaker 5: this looks better that it didn't go to a second 13 00:00:36,960 --> 00:00:39,080 Speaker 5: round or a third round. Nobody would argue that, but 14 00:00:39,120 --> 00:00:42,400 Speaker 5: that he didn't get it easily without having to have 15 00:00:42,440 --> 00:00:45,400 Speaker 5: some negotiating going on. What are the implications potentially of that, 16 00:00:45,640 --> 00:00:48,240 Speaker 5: or do we start governing next week and everybody forgets 17 00:00:48,240 --> 00:00:48,640 Speaker 5: about it. 18 00:00:49,640 --> 00:00:51,559 Speaker 3: I don't know anybody we'll forget about any of this. 19 00:00:51,640 --> 00:00:54,600 Speaker 2: Let's remember he will have a majority if Donald Trump 20 00:00:54,600 --> 00:00:57,800 Speaker 2: gets the members he requested to join his administration, a 21 00:00:57,880 --> 00:01:01,560 Speaker 2: majority of one. When you see Mike Johnson talking to 22 00:01:01,560 --> 00:01:04,440 Speaker 2: Hakeim Jeffreys on the floor there rest assured they're going 23 00:01:04,480 --> 00:01:06,440 Speaker 2: to have to work together to make anything happen. 24 00:01:06,920 --> 00:01:07,720 Speaker 3: The next step, of. 25 00:01:07,680 --> 00:01:11,160 Speaker 2: Course, once we get through this swearing in the membership, 26 00:01:11,240 --> 00:01:13,640 Speaker 2: they're going to have to craft out a plan, an 27 00:01:13,720 --> 00:01:16,679 Speaker 2: agenda that will include boror security and extending the Trump 28 00:01:16,720 --> 00:01:19,360 Speaker 2: tax cuts. They're going to have to avoid a government shutdown. 29 00:01:19,360 --> 00:01:21,279 Speaker 2: They're going to have to deal with raising the debt ceiling. 30 00:01:21,360 --> 00:01:23,520 Speaker 2: Doing all of that with a majority of one is 31 00:01:23,560 --> 00:01:26,200 Speaker 2: going to be very complicated for Mike Johnson, who is 32 00:01:26,240 --> 00:01:30,319 Speaker 2: now making his way toward the speaker's rostrum so he 33 00:01:30,360 --> 00:01:32,560 Speaker 2: can reclaim the gavel. A lot of happy folks here, 34 00:01:32,560 --> 00:01:35,000 Speaker 2: But to your point, I think, Carol, the hard part 35 00:01:35,080 --> 00:01:36,320 Speaker 2: actually starts now. 36 00:01:36,360 --> 00:01:39,880 Speaker 6: Did this vote today send any sort of message about 37 00:01:39,880 --> 00:01:44,240 Speaker 6: the power of Donald Trump. Mike Johnson was backed is 38 00:01:44,319 --> 00:01:47,440 Speaker 6: backed by Donald Trump, but not everybody in the party 39 00:01:47,880 --> 00:01:50,320 Speaker 6: fell in line today. 40 00:01:50,440 --> 00:01:53,800 Speaker 2: Donald Trump and Elon musked him. They both laid in 41 00:01:53,840 --> 00:01:57,800 Speaker 2: the game, endorsed Mike Johnson. We can argue that it 42 00:01:57,880 --> 00:01:59,720 Speaker 2: might have helped him actually get this done on the 43 00:01:59,760 --> 00:02:04,040 Speaker 2: first remembering that this had to happen today for the 44 00:02:04,120 --> 00:02:07,840 Speaker 2: vote certification on Monday, the sixth of January. Right, this 45 00:02:07,880 --> 00:02:10,400 Speaker 2: is the next January sixth. We're walking up on here. 46 00:02:10,440 --> 00:02:12,000 Speaker 2: You need to have a Congress to do that. That's 47 00:02:12,280 --> 00:02:14,799 Speaker 2: a joint session where that takes place in the very 48 00:02:14,880 --> 00:02:16,880 Speaker 2: chamber that we're looking at now, and you'll see Kamala 49 00:02:16,960 --> 00:02:20,440 Speaker 2: Harris preside over that vote certification. That was a point 50 00:02:20,480 --> 00:02:23,360 Speaker 2: of leverage that Kevin McCarthy didn't have, that even Mike 51 00:02:23,400 --> 00:02:26,120 Speaker 2: Johnson didn't have the last time around. And I suspect 52 00:02:26,120 --> 00:02:28,760 Speaker 2: that Donald Trump was involved in those conversations. Today we 53 00:02:28,760 --> 00:02:30,880 Speaker 2: saw Nancy Mace hand her cell phone over to Ralph 54 00:02:30,960 --> 00:02:32,640 Speaker 2: Norman at one point. I wonder who was on the 55 00:02:32,680 --> 00:02:35,040 Speaker 2: line there and whether that was a Florida area code. 56 00:02:35,160 --> 00:02:37,160 Speaker 2: That's the way this thing takes place now. That's the 57 00:02:37,200 --> 00:02:39,400 Speaker 2: way it's done now, and what would normally be kind 58 00:02:39,440 --> 00:02:41,600 Speaker 2: of a formality. You have to grind the gears a 59 00:02:41,600 --> 00:02:43,639 Speaker 2: little bit when you have so few people on your 60 00:02:43,680 --> 00:02:45,440 Speaker 2: side in this Republican conference. 61 00:02:45,480 --> 00:02:47,040 Speaker 5: I gotta say, Joe, I want to go back to 62 00:02:47,080 --> 00:02:48,920 Speaker 5: something earlier you said, and it's something that we have 63 00:02:49,160 --> 00:02:52,639 Speaker 5: many conversations with folks around this table, investment experts who 64 00:02:52,639 --> 00:02:56,200 Speaker 5: are wondering exactly what a Trump White House's second Trump 65 00:02:56,240 --> 00:02:59,280 Speaker 5: White House ultimately gets done. You talk about this slim 66 00:02:59,320 --> 00:03:01,320 Speaker 5: majority that will be there on the House, and the 67 00:03:01,360 --> 00:03:03,800 Speaker 5: work that Mike Johnson will have to do to really 68 00:03:03,800 --> 00:03:05,000 Speaker 5: reach across the aisle. 69 00:03:05,919 --> 00:03:06,440 Speaker 4: It does. 70 00:03:06,520 --> 00:03:09,720 Speaker 5: It is indicative of maybe not everything or not to 71 00:03:09,760 --> 00:03:12,120 Speaker 5: the extremes in terms of the policies we heard from 72 00:03:12,120 --> 00:03:15,079 Speaker 5: Donald Trump on the campaign trail ultimately get carried out. 73 00:03:16,240 --> 00:03:16,919 Speaker 3: Well, that's true. 74 00:03:16,960 --> 00:03:20,200 Speaker 2: I mean, remembering, of course you've got a Republican House, 75 00:03:20,240 --> 00:03:22,560 Speaker 2: a Republican Senate, and a Republican White House. If it's 76 00:03:22,600 --> 00:03:25,160 Speaker 2: ever going to happen, it's now. But yes, the real 77 00:03:25,440 --> 00:03:28,880 Speaker 2: argument will likely fall along the lines of this tax 78 00:03:28,960 --> 00:03:32,520 Speaker 2: code reform. It's not just as simple anymore, right as 79 00:03:32,600 --> 00:03:35,840 Speaker 2: extending the Trump tax cuts. You have to add no 80 00:03:36,040 --> 00:03:39,320 Speaker 2: taxes on tips, no tax on overtime, no tax on 81 00:03:39,640 --> 00:03:42,920 Speaker 2: Social Security, mortgage interest, there were so many others involving 82 00:03:42,920 --> 00:03:45,200 Speaker 2: auto loans and things that never mind salt. We haven't 83 00:03:45,240 --> 00:03:47,840 Speaker 2: mentioned salt yet. Can you get all of that into 84 00:03:47,880 --> 00:03:51,560 Speaker 2: one bill? That's a tall order. So when you look 85 00:03:51,600 --> 00:03:53,760 Speaker 2: at promises made on the campaign trail, you have to 86 00:03:53,760 --> 00:03:56,440 Speaker 2: get into the granular and whether that's in fact possible. 87 00:03:56,480 --> 00:03:58,560 Speaker 2: Here we're looking at this live shop by the way 88 00:03:58,600 --> 00:04:03,000 Speaker 2: of chip Roy in the back of the chamber along 89 00:04:03,040 --> 00:04:05,240 Speaker 2: with some of his fellow members of the Freedom Caucus, 90 00:04:05,240 --> 00:04:07,440 Speaker 2: who were you know, the troublemakers, if you will, in 91 00:04:07,480 --> 00:04:09,440 Speaker 2: this case for Mike Johnson, even though he closed the 92 00:04:09,440 --> 00:04:11,560 Speaker 2: deal on round one. But what we're going to see 93 00:04:11,560 --> 00:04:14,160 Speaker 2: next is the speaker in the rostrum where he'll be 94 00:04:14,200 --> 00:04:18,040 Speaker 2: introduced by Jakim Jeffries and handed the gavel. And this 95 00:04:18,120 --> 00:04:19,960 Speaker 2: is the moment that they wanted, right. They've got their 96 00:04:20,000 --> 00:04:22,040 Speaker 2: family members, their kids are with them in some cases. 97 00:04:22,080 --> 00:04:24,640 Speaker 2: Today this is supposed to be a big, raw, raw 98 00:04:24,680 --> 00:04:26,560 Speaker 2: photo op for the conference, and they'll get to that 99 00:04:26,839 --> 00:04:29,920 Speaker 2: eventually once we get by the way back to Washington 100 00:04:29,920 --> 00:04:31,440 Speaker 2: and back to governing in a week or two. 101 00:04:31,520 --> 00:04:33,160 Speaker 3: It's also the confirmation. 102 00:04:32,760 --> 00:04:35,400 Speaker 2: Hearings that need to take place for Donald Trump's team, 103 00:04:35,760 --> 00:04:37,480 Speaker 2: and those are not going to go very easily for 104 00:04:37,520 --> 00:04:41,320 Speaker 2: the likes of Pete Hegseth Tulsea Gabbard, RFK Junior. So 105 00:04:41,400 --> 00:04:43,760 Speaker 2: before we even get to writing legislation, Carol, there are 106 00:04:43,800 --> 00:04:45,440 Speaker 2: going to be some bumps on the road for this 107 00:04:45,560 --> 00:04:46,520 Speaker 2: Republican majority. 108 00:04:46,720 --> 00:04:50,920 Speaker 6: Is Thomas Massey one of those bumps on the road, Well. 109 00:04:50,839 --> 00:04:51,800 Speaker 3: Boy, he sure was today. 110 00:04:51,800 --> 00:04:54,000 Speaker 2: Although you know everyone saw it coming so I feel 111 00:04:54,040 --> 00:04:56,120 Speaker 2: like they just kind of factored him out. He's made 112 00:04:56,240 --> 00:04:58,920 Speaker 2: very clear that he's not about to change his vote 113 00:04:59,480 --> 00:05:02,599 Speaker 2: for Mike Johnson no matter what he is promised. So 114 00:05:03,200 --> 00:05:05,240 Speaker 2: I think it's some of the other members that Chip 115 00:05:05,320 --> 00:05:08,080 Speaker 2: Roy's Marjorie Taylor Green was on the side of Mike 116 00:05:08,160 --> 00:05:10,599 Speaker 2: Johnson in this case, Andy Biggs, some of those folks 117 00:05:10,640 --> 00:05:13,279 Speaker 2: Andy Ogles and the Freedom Caucus who don't like the 118 00:05:13,279 --> 00:05:15,960 Speaker 2: way Mike Johnson handles budgeting, the fact that he has 119 00:05:16,000 --> 00:05:17,120 Speaker 2: worked with Democrats so far. 120 00:05:17,240 --> 00:05:20,040 Speaker 3: They might be more of the thorn in his side, you. 121 00:05:20,000 --> 00:05:22,080 Speaker 5: Know, all right, just to rehash if you're just joining 122 00:05:22,200 --> 00:05:25,840 Speaker 5: us on radio, TV, across our platforms, Republican Mike Johnson 123 00:05:25,839 --> 00:05:29,520 Speaker 5: winning re election as how Speaker, overcoming resistance from a 124 00:05:29,600 --> 00:05:33,440 Speaker 5: small but pivotal group of conservative hardliners after a flurry 125 00:05:33,440 --> 00:05:35,200 Speaker 5: of last minute talks and with the help of a 126 00:05:35,200 --> 00:05:38,800 Speaker 5: critical endorsement from President like Donald Trump. You know, Joe, 127 00:05:38,839 --> 00:05:42,080 Speaker 5: you understand the workings of Washington and what goes in 128 00:05:42,120 --> 00:05:44,960 Speaker 5: and around the nation's capital so well. It will be 129 00:05:44,960 --> 00:05:48,760 Speaker 5: an interesting second term of Donald Trump, and most already 130 00:05:48,800 --> 00:05:51,400 Speaker 5: say it's going to be different from the first White House. 131 00:05:51,520 --> 00:05:54,240 Speaker 5: I am curious if you were sitting down though, with 132 00:05:54,320 --> 00:05:57,000 Speaker 5: the Speaker, what would be your first question to him? 133 00:05:57,920 --> 00:05:59,799 Speaker 3: Boy? You know, how often do you guys? 134 00:06:00,960 --> 00:06:03,080 Speaker 2: Because a lot of people think Donald Trump is the 135 00:06:03,080 --> 00:06:06,240 Speaker 2: real speaker, and you've got arguably Donald Trump on one 136 00:06:06,240 --> 00:06:08,400 Speaker 2: shoulder and Elon Musk on the other. So this is 137 00:06:09,040 --> 00:06:11,800 Speaker 2: really framed by many the hardest job in Washington, at 138 00:06:11,880 --> 00:06:15,000 Speaker 2: least the most unwonted job in Washington is being the 139 00:06:15,040 --> 00:06:18,680 Speaker 2: Speaker of the House with such a narrow majority. I 140 00:06:18,680 --> 00:06:20,400 Speaker 2: guess i'd ask him to what extent are you willing 141 00:06:20,440 --> 00:06:22,560 Speaker 2: to work with hackem Jeffreys as well? Because they're going 142 00:06:22,600 --> 00:06:23,960 Speaker 2: to need each other to do anything. 143 00:06:24,000 --> 00:06:24,520 Speaker 3: In this case. 144 00:06:24,560 --> 00:06:27,039 Speaker 2: It's not so much a power sharing agreement in the 145 00:06:27,080 --> 00:06:30,480 Speaker 2: traditional sense when you'd have a real tie, but with 146 00:06:30,560 --> 00:06:32,640 Speaker 2: one member, my goodness, they're going to have to work 147 00:06:32,680 --> 00:06:34,400 Speaker 2: together on a lot of things here, and that's going 148 00:06:34,440 --> 00:06:38,200 Speaker 2: to make life more challenging for Mike Johnson. Question is again, 149 00:06:38,320 --> 00:06:39,960 Speaker 2: how quick can they get to the border? That's what 150 00:06:40,000 --> 00:06:42,160 Speaker 2: people want to see, those who brought Donald Trump back 151 00:06:42,160 --> 00:06:44,520 Speaker 2: to Washington, and that will likely be the first bill 152 00:06:44,560 --> 00:06:45,480 Speaker 2: that you see emerge. 153 00:06:45,520 --> 00:06:49,719 Speaker 6: How tenuous is Speaker Johnson's position right now I think 154 00:06:49,760 --> 00:06:54,920 Speaker 6: back to the challenges that former House Speaker McCarthy faced. Yeah, 155 00:06:55,000 --> 00:06:58,240 Speaker 6: just a couple of years ago before this. How tenuous 156 00:06:58,279 --> 00:06:59,280 Speaker 6: is his position right now? 157 00:07:01,240 --> 00:07:05,159 Speaker 2: It's less tenuous simply by the math tim They're going 158 00:07:05,240 --> 00:07:07,039 Speaker 2: to be voting on a rules package that I referred 159 00:07:07,040 --> 00:07:09,359 Speaker 2: to already here. That's one of the next procedural things 160 00:07:09,720 --> 00:07:13,400 Speaker 2: that will take place that changes that motion to vacate. 161 00:07:13,520 --> 00:07:16,040 Speaker 2: We kept talking about the procedure through which you fire 162 00:07:16,120 --> 00:07:18,800 Speaker 2: the speaker when it was Kevin McCarthy. He made a 163 00:07:18,800 --> 00:07:21,160 Speaker 2: deal to get that gabble by bringing it down to 164 00:07:21,280 --> 00:07:24,640 Speaker 2: a single member. That's partly why Matt Gates is famous 165 00:07:24,680 --> 00:07:26,560 Speaker 2: at this point because he took care of that. No 166 00:07:26,640 --> 00:07:28,520 Speaker 2: longer in the House, and by the way, he didn't 167 00:07:28,520 --> 00:07:31,160 Speaker 2: show up today as some thought he might. That number 168 00:07:31,320 --> 00:07:34,320 Speaker 2: increased to nine. Now it would take nine members to 169 00:07:34,400 --> 00:07:35,400 Speaker 2: trigger a vote to. 170 00:07:35,360 --> 00:07:36,240 Speaker 3: Fire the speaker. 171 00:07:36,600 --> 00:07:38,120 Speaker 2: So you've got a little bit of breathing room for 172 00:07:38,240 --> 00:07:42,000 Speaker 2: Mike Johnson procedurally but also politically because he's got Donald 173 00:07:42,040 --> 00:07:44,840 Speaker 2: Trump at his back, He's got Elon Musk behind him, 174 00:07:45,120 --> 00:07:47,440 Speaker 2: and will likely be in much better shape in this 175 00:07:47,520 --> 00:07:49,840 Speaker 2: Congress than anything we saw in the last. 176 00:07:49,840 --> 00:07:52,480 Speaker 5: I will say that we do have members of the 177 00:07:52,560 --> 00:07:56,040 Speaker 5: House weighing in. Representative Scott Perry from Pennsylvania say, while 178 00:07:56,040 --> 00:07:59,840 Speaker 5: I maintain my reservations about Speaker Johnson's leadership record, today 179 00:08:00,080 --> 00:08:02,800 Speaker 5: voted in support of President Trump's agenda, we will hold 180 00:08:02,840 --> 00:08:07,400 Speaker 5: Speaker Johnson accountable to accomplish the Republican agenda and talking 181 00:08:07,440 --> 00:08:10,680 Speaker 5: about specific issues, he must secure our southern border, institute, 182 00:08:10,920 --> 00:08:15,040 Speaker 5: commence House rules, cut and bridled federal spending, implement a 183 00:08:15,040 --> 00:08:19,880 Speaker 5: Congressional stock trade band. So you know, various members weighing in, 184 00:08:19,920 --> 00:08:21,960 Speaker 5: maybe on some of their concerns. Joe and I would 185 00:08:22,000 --> 00:08:23,920 Speaker 5: assume that we'll continue to hear some of these about 186 00:08:23,920 --> 00:08:25,760 Speaker 5: what they expect out of this speaker. 187 00:08:26,240 --> 00:08:27,200 Speaker 3: Yes, sure you will. 188 00:08:27,280 --> 00:08:29,160 Speaker 2: And that's an important one that you mentioned, by the way, 189 00:08:29,240 --> 00:08:31,520 Speaker 2: not by accident, because that is a member of the 190 00:08:31,560 --> 00:08:34,880 Speaker 2: Freedom Caucus who has been on the fence. 191 00:08:34,600 --> 00:08:37,360 Speaker 3: With some of this, not so much about the Trump agenda. 192 00:08:37,400 --> 00:08:41,440 Speaker 2: These are MAGA loyalists, but they are not always in 193 00:08:41,480 --> 00:08:43,560 Speaker 2: favor of the way that Mike Johnson or before him, 194 00:08:43,600 --> 00:08:47,640 Speaker 2: Kevin McCarthy has worked with Democrats continuing resolutions on the 195 00:08:47,720 --> 00:08:50,520 Speaker 2: bus bills. They want regular order and they want steep 196 00:08:50,559 --> 00:08:52,880 Speaker 2: spending cuts and by the way, I've mentioned Elon Muska 197 00:08:52,880 --> 00:08:56,280 Speaker 2: a couple of times. Right before this vote, Mike Johnson 198 00:08:56,320 --> 00:08:58,880 Speaker 2: went on x and put quite a missive and said, 199 00:08:59,160 --> 00:09:01,640 Speaker 2: as speaker, I can commit to do the following. There 200 00:09:01,640 --> 00:09:05,840 Speaker 2: were three items. The very first one was to commit 201 00:09:05,920 --> 00:09:10,160 Speaker 2: to working with DOGE and to enact the spending cut 202 00:09:10,480 --> 00:09:13,880 Speaker 2: recommendations that come from Elon Musk and Vivek Ramaswami. 203 00:09:13,920 --> 00:09:15,440 Speaker 3: It may have helped him win the gavel today. 204 00:09:15,559 --> 00:09:17,160 Speaker 5: All right, Joe, do not go anywhere. 205 00:09:17,280 --> 00:09:17,520 Speaker 3: Chris. 206 00:09:17,520 --> 00:09:20,120 Speaker 5: We need you at this hour, no doubt about that. 207 00:09:22,440 --> 00:09:25,920 Speaker 1: You're listening to the Bloomberg Balance of Power podcasts. Catch 208 00:09:26,000 --> 00:09:29,080 Speaker 1: us live weekdays at noon and five pm Eastern on 209 00:09:29,160 --> 00:09:32,400 Speaker 1: Apple Cockley and Android Auto with the Bloomberg Business App. 210 00:09:32,440 --> 00:09:35,480 Speaker 1: You can also listen live on Amazon Alexa from our 211 00:09:35,480 --> 00:09:40,760 Speaker 1: flagship New York station Just Say Alexa played Bloomberg eleven thirty. 212 00:09:41,640 --> 00:09:43,720 Speaker 5: You do have somebody up there on Capitol Hill, our 213 00:09:43,760 --> 00:09:47,199 Speaker 5: own Tyler Candle. She's Bloomberg News reporter Tyler. What I 214 00:09:47,280 --> 00:09:50,040 Speaker 5: am interested in what you are picking up in terms 215 00:09:50,120 --> 00:09:52,800 Speaker 5: of mood and maybe what was going on behind the 216 00:09:52,840 --> 00:09:57,520 Speaker 5: scenes when Mike Johnson didn't initially get that vote and 217 00:09:57,640 --> 00:09:59,480 Speaker 5: had to do some work behind the scenes. 218 00:10:00,559 --> 00:10:02,960 Speaker 4: Yeah, hey, Carol, it was fast moving up here on 219 00:10:03,000 --> 00:10:04,720 Speaker 4: Capitol Hill. And just to give you a little bit 220 00:10:04,760 --> 00:10:07,000 Speaker 4: of color of what's happening up here, the hill is 221 00:10:07,080 --> 00:10:10,319 Speaker 4: absolutely packed both with members but also their families as 222 00:10:10,360 --> 00:10:13,400 Speaker 4: they come to witness the new member class be sworn in. 223 00:10:13,480 --> 00:10:16,120 Speaker 4: So there is high energy here in the rotunda. I 224 00:10:16,160 --> 00:10:17,840 Speaker 4: can tell you that I was sticking out how Speaker 225 00:10:17,840 --> 00:10:21,000 Speaker 4: Mike Johnson's office earlier today before the vote, where he 226 00:10:21,120 --> 00:10:23,360 Speaker 4: told reporters that he would not engage in what he 227 00:10:23,400 --> 00:10:26,640 Speaker 4: called a quid pro quo to get any votes over 228 00:10:26,800 --> 00:10:28,199 Speaker 4: the finish line. So that's going to be the next 229 00:10:28,200 --> 00:10:30,760 Speaker 4: big question here as Joe was talking about, what were 230 00:10:30,880 --> 00:10:33,120 Speaker 4: those back room deals that may have been reached in 231 00:10:33,280 --> 00:10:35,960 Speaker 4: order to ultimately get him to that magic number of 232 00:10:36,040 --> 00:10:36,640 Speaker 4: two eighteen. 233 00:10:36,880 --> 00:10:39,920 Speaker 6: As Joe mentioned, the challenging part comes now, Tyler, what 234 00:10:39,960 --> 00:10:42,719 Speaker 6: does Mike Johnson have to do to be able to 235 00:10:43,000 --> 00:10:47,520 Speaker 6: actually be effective as House Speaker with such a slight majority. 236 00:10:48,679 --> 00:10:50,480 Speaker 4: Right, So, I had reporting this morning that I had 237 00:10:50,480 --> 00:10:53,200 Speaker 4: spoken to a Congressional aid who told me that they 238 00:10:53,240 --> 00:10:55,320 Speaker 4: ultimately thought that this was going to come down to 239 00:10:55,400 --> 00:10:58,720 Speaker 4: potential spending cuts, some sort of deal around that, since 240 00:10:58,720 --> 00:11:02,040 Speaker 4: when he looked at the members who voicing concerns with Johnson, 241 00:11:02,280 --> 00:11:05,000 Speaker 4: they were the same members who had previously voiced concerns 242 00:11:05,240 --> 00:11:08,320 Speaker 4: when it comes to potentially Donald Trump's agenda and what 243 00:11:08,320 --> 00:11:11,440 Speaker 4: that means for the fiscal outlook for the country, particularly 244 00:11:11,480 --> 00:11:14,120 Speaker 4: anticipated tax cuts. So I think that's going to see 245 00:11:14,120 --> 00:11:17,480 Speaker 4: something that we really see prioritized in this next Congress, 246 00:11:17,520 --> 00:11:21,280 Speaker 4: particularly with Speaker Johnson. Joe had also mentioned this, but 247 00:11:21,360 --> 00:11:23,520 Speaker 4: right before he went on the floor, he put out 248 00:11:23,520 --> 00:11:26,320 Speaker 4: what he was calling his list of commitments to his conference, 249 00:11:26,360 --> 00:11:28,600 Speaker 4: and they really had to deal with this idea of 250 00:11:28,640 --> 00:11:32,160 Speaker 4: fiscal responsibility, such as working with DOGE and pointing independent 251 00:11:32,200 --> 00:11:35,240 Speaker 4: experts that will release a report to the public, but 252 00:11:35,360 --> 00:11:37,640 Speaker 4: also urging his committees that they have to take what 253 00:11:37,679 --> 00:11:40,880 Speaker 4: he called quote aggressive action when it came to reviewing 254 00:11:41,080 --> 00:11:44,760 Speaker 4: their appropriations because we are expecting a busy year, particularly 255 00:11:45,000 --> 00:11:48,040 Speaker 4: with President elect Trump's new agenda, and it's going to 256 00:11:48,080 --> 00:11:50,720 Speaker 4: include spending and it's going to include tax cuts. And 257 00:11:51,600 --> 00:11:53,640 Speaker 4: this was just a little bit of a preview for 258 00:11:53,720 --> 00:11:56,560 Speaker 4: some of the criticism and thorns in the side of 259 00:11:56,559 --> 00:11:57,959 Speaker 4: Speaker Johnson that we might expect. 260 00:11:58,080 --> 00:11:59,920 Speaker 5: Tyler, I've got to say I've been watching and monitor 261 00:12:00,200 --> 00:12:02,400 Speaker 5: to see if the President elect has made any comments 262 00:12:02,440 --> 00:12:05,800 Speaker 5: on truth social and just kind of watching to see 263 00:12:05,800 --> 00:12:08,560 Speaker 5: if he makes any comments. What, if anything, did you 264 00:12:08,640 --> 00:12:12,760 Speaker 5: hear about behind the scenes of any involvement of the 265 00:12:12,760 --> 00:12:16,200 Speaker 5: President elect in this process, especially since when it seemed 266 00:12:16,240 --> 00:12:18,080 Speaker 5: like it was a little bit touch and go here 267 00:12:18,520 --> 00:12:19,080 Speaker 5: at the end. 268 00:12:20,040 --> 00:12:21,760 Speaker 4: Well, I have to say there was actually an audible 269 00:12:21,800 --> 00:12:24,439 Speaker 4: gas peer in the rotunda when Chip Roy ended up 270 00:12:24,480 --> 00:12:27,439 Speaker 4: going for President elect Trump. We know that Trip Roy 271 00:12:27,520 --> 00:12:29,840 Speaker 4: had been one of those holdouts, and he had previously 272 00:12:29,920 --> 00:12:32,640 Speaker 4: sparred with President elect Trump. If you'll recall during that 273 00:12:32,760 --> 00:12:36,680 Speaker 4: spending debate last month, when Trump had urged Republicans to 274 00:12:36,840 --> 00:12:40,040 Speaker 4: lift the debt ceiling, he threatened Roy with a primary 275 00:12:40,160 --> 00:12:42,440 Speaker 4: challenge cance. Roy stood up and said that he was 276 00:12:42,520 --> 00:12:44,880 Speaker 4: not going to end up voting for that. So it 277 00:12:44,960 --> 00:12:47,920 Speaker 4: was interesting to hear that when President elect Trump threw 278 00:12:47,920 --> 00:12:51,080 Speaker 4: his weight behind Johnson, he offered to personally call members 279 00:12:51,120 --> 00:12:53,800 Speaker 4: and that included Trip Roy. So we are and on 280 00:12:53,840 --> 00:12:56,040 Speaker 4: the first round, of course, trip Roy ended up going 281 00:12:56,160 --> 00:12:58,720 Speaker 4: for Mike Johnson. So it does appear that there was 282 00:12:58,760 --> 00:13:01,319 Speaker 4: some sort of sway there, and we are also told 283 00:13:01,360 --> 00:13:05,200 Speaker 4: that allies of Trump on the Hill ended up going 284 00:13:05,240 --> 00:13:10,480 Speaker 4: into trying to push and work with Speaker Mike Johnson 285 00:13:10,559 --> 00:13:13,120 Speaker 4: when it came to persuading some of these House Freedom 286 00:13:13,160 --> 00:13:16,080 Speaker 4: Caucus members. But ultimately important to remember that on that 287 00:13:16,120 --> 00:13:18,320 Speaker 4: first round vote, Trip Roy and also the Chair of 288 00:13:18,360 --> 00:13:21,120 Speaker 4: the House Freedom Caucus, Andy Harris, both voted in favor 289 00:13:21,120 --> 00:13:21,640 Speaker 4: of Johnson. 290 00:13:21,880 --> 00:13:25,000 Speaker 6: Tyler Kendall, Bloomberg News reporter joining us live from Capitol Hill. 291 00:13:25,040 --> 00:13:25,720 Speaker 3: Thanks so much for that. 292 00:13:25,760 --> 00:13:27,760 Speaker 6: I do want to go back to Joe Matthew standing 293 00:13:27,800 --> 00:13:32,440 Speaker 6: by in our Washington, DC bureau, co host of Bloomberg 294 00:13:32,440 --> 00:13:35,280 Speaker 6: Bolence of Power. Excuse me, Joe, so many shows out there. 295 00:13:35,400 --> 00:13:37,600 Speaker 6: I want to go back to what you said about DOGE, 296 00:13:37,640 --> 00:13:40,960 Speaker 6: the Department of Government efficiency and the commitment on the 297 00:13:41,000 --> 00:13:46,320 Speaker 6: Department of Government efficiency from the elected Speaker of the House, 298 00:13:46,400 --> 00:13:49,680 Speaker 6: Mike Johnson, and hear a little bit about your view 299 00:13:49,720 --> 00:13:52,960 Speaker 6: on how this could be easier said than done given 300 00:13:53,440 --> 00:13:57,559 Speaker 6: how much the US government spends on Social Security, Medicare, 301 00:13:58,040 --> 00:14:02,720 Speaker 6: national defense, health, even net interest. I mean that's the 302 00:14:02,720 --> 00:14:06,320 Speaker 6: majority of the budget right there. How does the Speaker 303 00:14:07,320 --> 00:14:09,080 Speaker 6: enact the recommendations from DOGE? 304 00:14:10,320 --> 00:14:13,680 Speaker 2: It's a great question, and I'll preface my answer by 305 00:14:13,720 --> 00:14:16,800 Speaker 2: saying that this DOGE, the d for Department, is not 306 00:14:16,840 --> 00:14:18,840 Speaker 2: actually a government department, right. This is kind of a 307 00:14:18,840 --> 00:14:22,240 Speaker 2: blue ribbon panel, if you will, not, unlike other committees 308 00:14:22,280 --> 00:14:24,040 Speaker 2: that have been put together before. So we've been trying 309 00:14:24,040 --> 00:14:28,960 Speaker 2: to determine where's the connective tissue here between the DOGE 310 00:14:29,120 --> 00:14:32,960 Speaker 2: and the actual lawmaking when it comes to writing legislation 311 00:14:33,080 --> 00:14:36,840 Speaker 2: or crafting budgets. He wrote in his post on X 312 00:14:37,240 --> 00:14:40,880 Speaker 2: I commit to create a working group comprised of independent experts, 313 00:14:40,920 --> 00:14:43,920 Speaker 2: not corrupted by lobbyists and special interests, to work with 314 00:14:44,000 --> 00:14:47,960 Speaker 2: DOGE and our committees on implementing recommended government and spending 315 00:14:47,960 --> 00:14:51,800 Speaker 2: reforms to protect the American taxpayer. There's no guarantee there 316 00:14:51,840 --> 00:14:54,840 Speaker 2: that that actually happens, though, and we don't exactly know 317 00:14:54,960 --> 00:14:57,600 Speaker 2: yet what the DOGE plans to do in terms of 318 00:14:58,080 --> 00:15:01,640 Speaker 2: cutting spending. We've heard Elon Musk suggest cutting two trillion dollars, 319 00:15:01,640 --> 00:15:03,160 Speaker 2: but I think to your point, Tim, they'd have to 320 00:15:03,360 --> 00:15:06,480 Speaker 2: probably crack into entitlements to find that kind of money. 321 00:15:06,520 --> 00:15:08,880 Speaker 2: They would have the slash defense spending, neither of which 322 00:15:08,920 --> 00:15:10,120 Speaker 2: Donald Trump wants to do. 323 00:15:10,320 --> 00:15:14,040 Speaker 6: Yeah, I've heard that called the third rail of politics. 324 00:15:14,040 --> 00:15:18,760 Speaker 6: People don't necessarily want to touch that. Joe, all right, Joe, 325 00:15:18,760 --> 00:15:21,120 Speaker 6: thanks so much. Right, yeah, Joe, thanks so much. We're 326 00:15:21,120 --> 00:15:22,480 Speaker 6: gonna let you go. You got a lot of work 327 00:15:22,520 --> 00:15:24,960 Speaker 6: to do before your five pm show, so we're gonna 328 00:15:25,000 --> 00:15:27,880 Speaker 6: let you go. That's a Bloomberg's Joe Matthew down there 329 00:15:27,880 --> 00:15:28,720 Speaker 6: in Washington, DC. 330 00:15:32,240 --> 00:15:35,680 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 331 00:15:35,760 --> 00:15:38,760 Speaker 1: us live weekdays at noon and five pm Eastern on 332 00:15:38,920 --> 00:15:42,160 Speaker 1: almal Coarckley and Android Otto with the Bloomberg Business App. 333 00:15:42,320 --> 00:15:45,600 Speaker 1: Listen on demand wherever you get your podcasts, or watch 334 00:15:45,640 --> 00:15:47,680 Speaker 1: us live on YouTube totally. 335 00:15:48,520 --> 00:15:52,000 Speaker 5: Speaker Johnson laying out the Republican agenda, the priorities, a 336 00:15:52,040 --> 00:15:55,800 Speaker 5: return to, in his words, to common sense, after winning 337 00:15:55,880 --> 00:15:59,280 Speaker 5: re election as House Speaker, overcoming resistant from a small 338 00:15:59,280 --> 00:16:02,440 Speaker 5: but pivotal group of conservative hardliners after a flurry of 339 00:16:02,520 --> 00:16:05,440 Speaker 5: last minute talk something we were watching happen in real 340 00:16:05,520 --> 00:16:09,360 Speaker 5: time from the House floor. And also he did have 341 00:16:09,440 --> 00:16:11,960 Speaker 5: the help of a critical endorsement from President like Donald Trump, 342 00:16:11,960 --> 00:16:15,240 Speaker 5: who has come out tim untruths social offering up his 343 00:16:15,320 --> 00:16:19,720 Speaker 5: congratulations to Speaker Mike Johnson for receiving in the president 344 00:16:19,920 --> 00:16:22,960 Speaker 5: x words an unprecedented vote of confidence in Congress. He says, 345 00:16:22,960 --> 00:16:24,880 Speaker 5: Mike will be a great speaker and our country will 346 00:16:24,880 --> 00:16:25,920 Speaker 5: be the beneficiary. 347 00:16:26,200 --> 00:16:30,840 Speaker 6: Yeah, so wasn't just Mike Johnson we were from. We 348 00:16:30,880 --> 00:16:33,480 Speaker 6: also heard from Mehem Jeffries a little earlier. Absolutely, Cher 349 00:16:33,520 --> 00:16:35,360 Speaker 6: said it is time for us to come together, not 350 00:16:35,400 --> 00:16:38,680 Speaker 6: as Democrats or Republicans, but as Americans to get things 351 00:16:38,720 --> 00:16:41,600 Speaker 6: done for the people. In that spirit, House Democrats work 352 00:16:41,680 --> 00:16:45,160 Speaker 6: hard to find bipartisan common with our Republican colleagues in 353 00:16:45,200 --> 00:16:49,080 Speaker 6: the incoming administration on any issue, whenever and wherever possible. 354 00:16:49,200 --> 00:16:51,040 Speaker 5: Someone who will be following what kind of common ground 355 00:16:51,080 --> 00:16:54,040 Speaker 5: they ultimately find? His Bloomberg News Politics editor Laura Davis, 356 00:16:54,040 --> 00:16:57,400 Speaker 5: and she's been sitting by listening to all of the 357 00:16:57,400 --> 00:16:59,800 Speaker 5: happenings on the floor of the US House of Representative 358 00:17:00,040 --> 00:17:06,119 Speaker 5: there in our Bloomberg News DC bureau. Laura, you do wonder, okay, ultimately, 359 00:17:06,160 --> 00:17:10,760 Speaker 5: after listening to the Minority Leader Hakim Jeffries, followed by 360 00:17:10,760 --> 00:17:15,560 Speaker 5: the House Speaker Mike Johnson, their agendas, their priorities, they 361 00:17:15,600 --> 00:17:18,600 Speaker 5: certainly do not align. So you do wonder about the 362 00:17:18,600 --> 00:17:21,920 Speaker 5: common ground that they will find moving forward. 363 00:17:23,000 --> 00:17:25,040 Speaker 7: Yeah, these speeches are sort of the first day of 364 00:17:25,080 --> 00:17:27,400 Speaker 7: school speeches. You know, everyone's back, you know they want 365 00:17:27,440 --> 00:17:30,960 Speaker 7: re election back after the holidays and feeling optimistic and 366 00:17:31,680 --> 00:17:34,879 Speaker 7: you know, joyful. A lot of those feelings subside, you know, 367 00:17:34,920 --> 00:17:37,919 Speaker 7: really within just days or even hours. You know, Republicans 368 00:17:37,960 --> 00:17:40,280 Speaker 7: have full control. They do not have to negotiate with 369 00:17:40,560 --> 00:17:43,080 Speaker 7: Democrats for much of anything. They're able to use these 370 00:17:43,119 --> 00:17:46,199 Speaker 7: processes where they can fast track bills through Congress. So 371 00:17:46,240 --> 00:17:49,159 Speaker 7: it's unlikely that we're going to see much bipartisan cooperation 372 00:17:49,280 --> 00:17:51,879 Speaker 7: despite some of both what Hakeen Jeffrey says as well 373 00:17:51,880 --> 00:17:54,919 Speaker 7: as Mike Johnson sort of alluding to working together. Really, 374 00:17:55,160 --> 00:17:57,879 Speaker 7: you know, Democrats job in this is to sort of 375 00:17:58,440 --> 00:18:01,480 Speaker 7: do whatever they can do to delay and try to 376 00:18:01,520 --> 00:18:04,800 Speaker 7: you know, sw division among Republicans. Mike Johnson's job is 377 00:18:04,840 --> 00:18:08,120 Speaker 7: to keep his Republican party together. There are some divisions 378 00:18:08,119 --> 00:18:10,320 Speaker 7: in that party, things that Democrats could exploit. He has 379 00:18:10,359 --> 00:18:13,760 Speaker 7: a narrow, narrow majority, even narrower than he did last Congress. 380 00:18:14,280 --> 00:18:16,800 Speaker 7: So this is gonna be the big challenge going forward. 381 00:18:16,960 --> 00:18:18,639 Speaker 7: You also have you know, Republicans in the Senate and 382 00:18:18,680 --> 00:18:21,080 Speaker 7: Republicans in the House not on the same page. In 383 00:18:21,119 --> 00:18:23,520 Speaker 7: the Senate, we heard John Thune say earlier that he 384 00:18:23,560 --> 00:18:26,399 Speaker 7: wants to move first with an immigration bill. In the House, 385 00:18:26,440 --> 00:18:28,600 Speaker 7: that we are talking more about doing taxes first. So 386 00:18:28,600 --> 00:18:31,600 Speaker 7: there's a lot of ideas and you know, only a 387 00:18:31,680 --> 00:18:33,720 Speaker 7: limited sort of pathway to get some of these legislative 388 00:18:33,720 --> 00:18:34,360 Speaker 7: priorities done. 389 00:18:34,440 --> 00:18:36,879 Speaker 6: What does the president elect want Congress to do? 390 00:18:38,200 --> 00:18:40,280 Speaker 7: This is a good question. He has not weighed in 391 00:18:40,960 --> 00:18:43,119 Speaker 7: some of his aids have really pushed for immigration to 392 00:18:43,160 --> 00:18:45,480 Speaker 7: be that first priority and really leaned on John Thune 393 00:18:45,760 --> 00:18:48,400 Speaker 7: in the Senate to make that path forward. What we've 394 00:18:48,400 --> 00:18:50,240 Speaker 7: heard from folks in the House is said, look, you know, 395 00:18:50,320 --> 00:18:53,399 Speaker 7: every time we've tried to do multiple things, you know, 396 00:18:53,560 --> 00:18:56,240 Speaker 7: they sort of in a moment of sort of shocking 397 00:18:56,560 --> 00:18:59,640 Speaker 7: self recognition, we can't do that. You know, we saw 398 00:19:00,119 --> 00:19:01,639 Speaker 7: in Trump's first term they tried to do with a 399 00:19:01,680 --> 00:19:04,720 Speaker 7: healthcare bill that filled failed and they ultimately moved on 400 00:19:04,760 --> 00:19:07,840 Speaker 7: to taxes. What Democrat or some Republicans are saying, look, 401 00:19:07,880 --> 00:19:10,000 Speaker 7: let's get taxes done. We have a year end deadline. 402 00:19:10,000 --> 00:19:12,160 Speaker 7: If we don't act, if we don't get a bill pass, 403 00:19:12,200 --> 00:19:13,959 Speaker 7: then taxes will go up. We will see sort of 404 00:19:14,040 --> 00:19:17,360 Speaker 7: Trump's first term signature, legislative achievement go away, So there's 405 00:19:17,359 --> 00:19:19,719 Speaker 7: a hard push there to really make sure that taxes 406 00:19:19,720 --> 00:19:23,080 Speaker 7: get the priority and they aren't waylaid by other things. 407 00:19:23,080 --> 00:19:25,880 Speaker 7: You know, the Congress has been bedeviled by an immigration 408 00:19:25,960 --> 00:19:28,119 Speaker 7: package for decades, so I think there's some concern that, 409 00:19:28,480 --> 00:19:31,120 Speaker 7: you know that even though they have Republicans all in control, 410 00:19:31,240 --> 00:19:32,920 Speaker 7: that that still is not an easy thing to get 411 00:19:32,920 --> 00:19:33,480 Speaker 7: across the finish. 412 00:19:33,560 --> 00:19:35,159 Speaker 5: Yep, we've all grown a little bit older watching that 413 00:19:35,400 --> 00:19:38,120 Speaker 5: and waiting in terms of immigration. Laura, thank you so much, 414 00:19:38,160 --> 00:19:41,159 Speaker 5: so appreciate your patience and listing along and giving us 415 00:19:41,160 --> 00:19:45,000 Speaker 5: some great commentary there. Bloomberg News Politics editor Laura Davison. 416 00:19:46,080 --> 00:19:52,200 Speaker 2: Thanks for listening to the Balance of Power podcast. Make 417 00:19:52,240 --> 00:19:55,159 Speaker 2: sure to subscribe if you haven't already an Apple, Spotify 418 00:19:55,280 --> 00:19:57,840 Speaker 2: or wherever you get your podcasts, and you can find 419 00:19:57,920 --> 00:20:00,720 Speaker 2: us live every weekday from Washington, d D at noontime 420 00:20:00,800 --> 00:20:02,920 Speaker 2: Eastern at Bloomberg dot com.