1 00:00:02,520 --> 00:00:10,119 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,119 --> 00:00:13,880 Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at 3 00:00:13,920 --> 00:00:17,440 Speaker 1: noon and five pm Eastern on Applecarclay and Android Auto 4 00:00:17,520 --> 00:00:20,680 Speaker 1: with the Bloomberg Business App. Listen on demand wherever you 5 00:00:20,720 --> 00:00:23,760 Speaker 1: get your podcasts, or watch us live on YouTube. 6 00:00:25,200 --> 00:00:27,120 Speaker 2: Yeah. I went into the wee hours last evening. 7 00:00:27,160 --> 00:00:30,200 Speaker 3: I think they're still cleaning up Statuary Hall after a 8 00:00:30,400 --> 00:00:33,960 Speaker 3: record long State of the Union address, and so we're 9 00:00:34,000 --> 00:00:36,320 Speaker 3: peeking out a one eye this morning in the nation's capital. 10 00:00:36,360 --> 00:00:38,040 Speaker 3: And maybe that's the case around the country. How many 11 00:00:38,080 --> 00:00:39,600 Speaker 3: people watch that thing? I can't wait to see. The 12 00:00:39,680 --> 00:00:43,720 Speaker 3: number last year was thirty six million. Did thirty six 13 00:00:43,800 --> 00:00:46,520 Speaker 3: million or more sit through an hour and forty seven 14 00:00:46,600 --> 00:00:47,400 Speaker 3: minutes last night? 15 00:00:47,800 --> 00:00:51,400 Speaker 2: If so, man, we've got something. So thanks for joining us. 16 00:00:51,680 --> 00:00:54,040 Speaker 3: If you were up late, especially on the Wednesday edition 17 00:00:54,120 --> 00:00:55,840 Speaker 3: of Balance of Power, We've got a full day of 18 00:00:55,840 --> 00:00:58,000 Speaker 3: coverage plan for you on this day. 19 00:00:58,040 --> 00:00:59,000 Speaker 2: After the speech. 20 00:01:00,200 --> 00:01:03,680 Speaker 3: No real insights into Iran last evening, and definitely no 21 00:01:03,720 --> 00:01:07,679 Speaker 3: announcement of strikes, So that story remains in play, as 22 00:01:07,680 --> 00:01:10,399 Speaker 3: does the story about tariffs, and of course the president's 23 00:01:11,080 --> 00:01:15,640 Speaker 3: hopes for a better economy in the new year. Of course, 24 00:01:15,680 --> 00:01:18,600 Speaker 3: we know going into this speech that he was underwater 25 00:01:18,680 --> 00:01:20,440 Speaker 3: on some pretty big issues. We talk about it every 26 00:01:20,480 --> 00:01:22,960 Speaker 3: day here on Balance of Power on Bloomberg Radio streaming 27 00:01:22,959 --> 00:01:24,920 Speaker 3: live on YouTube right now. You can find us by 28 00:01:25,120 --> 00:01:28,640 Speaker 3: searching Bloomberg Business News Live. We're always with you on 29 00:01:28,680 --> 00:01:32,800 Speaker 3: Bloomberg Originals here from Washington as well. Because affordability, of course, has. 30 00:01:32,640 --> 00:01:33,560 Speaker 2: Been the mantra, right. 31 00:01:33,600 --> 00:01:35,960 Speaker 3: We talk about it every day, and the president has 32 00:01:35,959 --> 00:01:40,600 Speaker 3: found himself underwater in major polling from major firms. We 33 00:01:40,720 --> 00:01:42,920 Speaker 3: talk about every day. We just had Cliff Young from 34 00:01:42,959 --> 00:01:47,360 Speaker 3: IPSOS in here recently. It's not just the economy, the 35 00:01:47,400 --> 00:01:51,640 Speaker 3: affordability issue, the stubborn last mile when it comes to inflation, 36 00:01:51,800 --> 00:01:54,120 Speaker 3: or maybe it's a new mile when it comes to tariffs, 37 00:01:54,680 --> 00:01:57,600 Speaker 3: but it's also immigration and the outrage that we've seen 38 00:01:58,240 --> 00:02:00,200 Speaker 3: by so many in the country over the day, the 39 00:02:00,240 --> 00:02:03,280 Speaker 3: shootings that took place in Minnesota, the call by Democrats 40 00:02:03,280 --> 00:02:06,560 Speaker 3: to take the masks off, to put the badges and 41 00:02:06,640 --> 00:02:08,600 Speaker 3: the IDs on, and to get a judicial warrant if 42 00:02:08,639 --> 00:02:10,520 Speaker 3: you want to knock down somebody's door. This is why, 43 00:02:10,520 --> 00:02:13,480 Speaker 3: by the way, that whole situation is why the Department 44 00:02:13,520 --> 00:02:16,560 Speaker 3: of Homeland Security remains shut this day after the State 45 00:02:16,600 --> 00:02:18,760 Speaker 3: of the Union, so it's clear on the two big 46 00:02:18,800 --> 00:02:24,440 Speaker 3: issues pick your poll. The President has found himself struggling 47 00:02:24,480 --> 00:02:29,080 Speaker 3: on the keys that got him elected, the economy, affordability 48 00:02:29,200 --> 00:02:32,120 Speaker 3: if you will there we use that word, and immigration 49 00:02:35,040 --> 00:02:37,480 Speaker 3: now knowing that that's where we stand in the public 50 00:02:37,520 --> 00:02:40,480 Speaker 3: opinion polls. The President of the United States stands before 51 00:02:40,480 --> 00:02:44,200 Speaker 3: the American people with this message. 52 00:02:44,280 --> 00:02:46,280 Speaker 2: Our country is winning again. 53 00:02:46,360 --> 00:02:49,480 Speaker 4: In fact, we're winning so much that we really don't 54 00:02:49,520 --> 00:02:54,920 Speaker 4: know what to do about it. People are asking me, please, please, please, 55 00:02:54,960 --> 00:02:56,919 Speaker 4: miss the president. We're winning too much. 56 00:02:57,280 --> 00:02:58,840 Speaker 2: We can't take it anymore. 57 00:02:58,919 --> 00:03:01,800 Speaker 4: We're not used to winning in our country until you 58 00:03:01,960 --> 00:03:02,560 Speaker 4: came along. 59 00:03:02,680 --> 00:03:04,200 Speaker 5: We're just always losing. 60 00:03:04,280 --> 00:03:08,640 Speaker 2: But now we're winning too much. Can't take it anymore. 61 00:03:10,800 --> 00:03:12,799 Speaker 3: And so the President wakes up to a new day, 62 00:03:14,000 --> 00:03:17,280 Speaker 3: having projected the Golden Age last evening before the American 63 00:03:17,280 --> 00:03:19,400 Speaker 3: people and before a joint session of Congress. And that's 64 00:03:19,400 --> 00:03:23,400 Speaker 3: where we start this morning with Bloomberg Washington correspondent Tyler Kendall, 65 00:03:23,400 --> 00:03:25,240 Speaker 3: who was up late with us too, and she's back 66 00:03:25,280 --> 00:03:28,120 Speaker 3: at it at sixteen hundred Pennsylvania Avenue. 67 00:03:28,400 --> 00:03:31,320 Speaker 2: Tyler, we can't take it anymore. No two hour speeches, 68 00:03:31,400 --> 00:03:32,040 Speaker 2: not after this. 69 00:03:32,720 --> 00:03:35,080 Speaker 3: What's the vibe at the White House today and what's 70 00:03:35,120 --> 00:03:38,640 Speaker 3: the message that the administration is trying to frame coming 71 00:03:38,680 --> 00:03:39,320 Speaker 3: out of this speech? 72 00:03:39,400 --> 00:03:42,880 Speaker 6: Tyler, Well, Joe, it's actually relatively quiet here at the 73 00:03:42,880 --> 00:03:46,440 Speaker 6: White House today, with the President having no public events 74 00:03:46,480 --> 00:03:49,560 Speaker 6: after what is now considered to be the longest State 75 00:03:49,640 --> 00:03:52,920 Speaker 6: of the Union address in US history. But it was 76 00:03:53,120 --> 00:03:56,200 Speaker 6: very clear that President Trump had a goal to make 77 00:03:56,240 --> 00:04:00,360 Speaker 6: the focus all about domestic issues, despite fourn policy lines 78 00:04:00,400 --> 00:04:04,120 Speaker 6: really dominating the conversation here in Washington in recent weeks. 79 00:04:04,120 --> 00:04:06,480 Speaker 6: I think it's fair to say, considering that we do 80 00:04:06,600 --> 00:04:09,080 Speaker 6: know and as you alluded to with recent polling, this 81 00:04:09,160 --> 00:04:11,520 Speaker 6: White House has really been playing defense when it comes 82 00:04:11,560 --> 00:04:15,520 Speaker 6: to affordability, and the President did that by touting prior 83 00:04:15,640 --> 00:04:18,839 Speaker 6: accomplishments right, really pushing ahead when it comes to those 84 00:04:18,880 --> 00:04:21,120 Speaker 6: tax cuts under the One Big, Beautiful Bill. As it 85 00:04:21,160 --> 00:04:23,920 Speaker 6: appears this White House is banking on larger refunds, more 86 00:04:23,920 --> 00:04:26,960 Speaker 6: cash and consumers pockets as they head into the midterms. 87 00:04:27,000 --> 00:04:30,039 Speaker 6: President Trump also doubled down on his tariff plans. We 88 00:04:30,080 --> 00:04:32,560 Speaker 6: can talk about that a little later too, but it's 89 00:04:32,560 --> 00:04:35,039 Speaker 6: really important to note that we didn't really get a 90 00:04:35,040 --> 00:04:36,680 Speaker 6: lot of new policy. 91 00:04:36,240 --> 00:04:38,080 Speaker 2: Proposals from the president. 92 00:04:38,160 --> 00:04:41,800 Speaker 6: There was a nod to a potential new retirement savings 93 00:04:41,839 --> 00:04:44,360 Speaker 6: plan for workers that do not currently have an employer 94 00:04:44,520 --> 00:04:48,520 Speaker 6: sponsored one. Perhaps we'll get some more details on that too, 95 00:04:48,680 --> 00:04:50,680 Speaker 6: But a lot of the president's speech when it came 96 00:04:50,720 --> 00:04:53,719 Speaker 6: to the economy and those affordability proposals, seem to be 97 00:04:53,760 --> 00:04:57,080 Speaker 6: geared at lawmakers to try to help him codify some 98 00:04:57,160 --> 00:04:59,960 Speaker 6: of those ideas that we've already heard, including banning and 99 00:05:00,000 --> 00:05:03,839 Speaker 6: institutional investors from buying single family homes, as well as 100 00:05:03,839 --> 00:05:07,640 Speaker 6: pushing forward his healthcare framework, which we haven't really heard 101 00:05:07,800 --> 00:05:10,039 Speaker 6: that much about, considering that the end of the year 102 00:05:10,040 --> 00:05:13,560 Speaker 6: we were talking so much about what the future of 103 00:05:13,640 --> 00:05:16,320 Speaker 6: healthcare and pricing would look like, Joe. As you all know, 104 00:05:16,400 --> 00:05:18,800 Speaker 6: President Trump's plan is really centered on the idea of 105 00:05:18,839 --> 00:05:23,960 Speaker 6: trying to shift federal subsidies from insurance companies to American consumers. 106 00:05:24,200 --> 00:05:27,680 Speaker 6: But this is going to be a key focus of 107 00:05:27,720 --> 00:05:30,159 Speaker 6: the presidents as we go forward. But it's important to 108 00:05:30,200 --> 00:05:32,760 Speaker 6: note a lot of these plans don't really have that 109 00:05:33,000 --> 00:05:36,080 Speaker 6: backing from Republicans in Congress, and there's only so much 110 00:05:36,080 --> 00:05:38,200 Speaker 6: he can do with unilateral authority. 111 00:05:39,279 --> 00:05:43,480 Speaker 3: Now, that's a perfect job, putting structure around a nearly 112 00:05:43,640 --> 00:05:47,880 Speaker 3: two hour long speech that hopscotch through a lot of topics. Tyler, 113 00:05:48,160 --> 00:05:51,080 Speaker 3: thank you, And I want to just while Tyler puts 114 00:05:51,080 --> 00:05:53,360 Speaker 3: structure around this, I'm going to stay at thirty thousand 115 00:05:53,360 --> 00:05:56,760 Speaker 3: feet here because the President started on the economy right, 116 00:05:56,760 --> 00:05:59,120 Speaker 3: could have started anywhere, but it was affordability. 117 00:05:59,160 --> 00:05:59,280 Speaker 7: Right. 118 00:05:59,320 --> 00:06:02,239 Speaker 3: It was inflation, and America is back. Gas prices are down, 119 00:06:02,520 --> 00:06:03,640 Speaker 3: the investments are up. 120 00:06:03,680 --> 00:06:10,080 Speaker 8: Listen, the roaring economy is roaring like never before, one 121 00:06:10,160 --> 00:06:14,600 Speaker 8: of the primary reasons for our countries studying economic turnaround. 122 00:06:15,040 --> 00:06:18,640 Speaker 8: We're tariffs, organs rates are the lowest in four years 123 00:06:18,640 --> 00:06:21,880 Speaker 8: and falling fast. American oil production is up by more 124 00:06:21,920 --> 00:06:26,280 Speaker 8: than six hundred thousand barrels a day. Democrats are destroying 125 00:06:26,320 --> 00:06:27,400 Speaker 8: our country. 126 00:06:27,000 --> 00:06:29,720 Speaker 4: But we've stopped it just in the nick of time, didn't. 127 00:06:31,279 --> 00:06:33,039 Speaker 3: Oh did you hear that turn at the end there? 128 00:06:33,040 --> 00:06:36,479 Speaker 3: And that's important, Tyler. He started with affordability, knowing that 129 00:06:36,520 --> 00:06:38,080 Speaker 3: a lot of people probably going to hear what the 130 00:06:38,120 --> 00:06:40,960 Speaker 3: first thirty minutes of this thing before they either give 131 00:06:41,040 --> 00:06:43,000 Speaker 3: up or go get some popcorn or go to bed. 132 00:06:44,320 --> 00:06:46,960 Speaker 3: Things got a little darker in the second half of 133 00:06:47,000 --> 00:06:50,280 Speaker 3: the speech, Tyler when he started yelling at elon Omar 134 00:06:50,360 --> 00:06:54,520 Speaker 3: and others started calling Democrats crazy people, And those words 135 00:06:54,560 --> 00:06:56,400 Speaker 3: were in the speech, that was in the script. 136 00:06:56,160 --> 00:07:00,640 Speaker 6: Wasn't it. It was according to the prepared marks that 137 00:07:00,720 --> 00:07:04,840 Speaker 6: US reporters received directly from the White House. And I 138 00:07:04,880 --> 00:07:07,239 Speaker 6: think it's fair to say that there were very few 139 00:07:07,400 --> 00:07:11,560 Speaker 6: moments by partisanship. We did see some moments, including when 140 00:07:11,600 --> 00:07:14,760 Speaker 6: President Trump called for that legislation to pass that would 141 00:07:14,800 --> 00:07:18,040 Speaker 6: curb insider trading in Congress, for example, but when it 142 00:07:18,080 --> 00:07:20,880 Speaker 6: comes to immigration, that really seemed to be the main 143 00:07:21,000 --> 00:07:26,040 Speaker 6: flashpoint between Republicans and Democrats. You mentioned that heated moment 144 00:07:26,760 --> 00:07:31,280 Speaker 6: between Congresswoman Ilan Omar and President Trump, and it was 145 00:07:31,280 --> 00:07:34,200 Speaker 6: also interesting to hear the President call for the immediate 146 00:07:34,200 --> 00:07:36,560 Speaker 6: resumption of funding for the Department of Homeland Security. This 147 00:07:36,680 --> 00:07:38,560 Speaker 6: was one of the first State of the Union addresses 148 00:07:38,600 --> 00:07:42,280 Speaker 6: to be conducted amid a partial government shut down as 149 00:07:42,280 --> 00:07:45,280 Speaker 6: we head into next week and hundreds of thousands of 150 00:07:45,360 --> 00:07:48,880 Speaker 6: DHS employees could miss their first paycheck. But you here 151 00:07:49,000 --> 00:07:52,720 Speaker 6: the President talk about that without us getting any indication 152 00:07:52,880 --> 00:07:54,960 Speaker 6: that we are any closer to a deal. When it 153 00:07:54,960 --> 00:07:58,480 Speaker 6: comes to curbs on immigration and customs enforcement. This, of 154 00:07:58,520 --> 00:08:01,080 Speaker 6: course is going to be necessary as Democrats are really 155 00:08:01,120 --> 00:08:03,000 Speaker 6: holding the line that they need to see some of 156 00:08:03,040 --> 00:08:05,720 Speaker 6: those reforms. You spoke to a lot of them yesterday 157 00:08:05,760 --> 00:08:07,760 Speaker 6: on Capitol Hill when it comes to the idea of 158 00:08:07,840 --> 00:08:12,520 Speaker 6: demasking federal agents involved in immigration operations. Also those new 159 00:08:12,600 --> 00:08:16,640 Speaker 6: judicial warrant requirements, because Joe, at the moment, the most 160 00:08:16,720 --> 00:08:20,680 Speaker 6: concrete change that we've seen have been the mandate for 161 00:08:20,840 --> 00:08:24,680 Speaker 6: body cameras on federal agents. But again that's not codified 162 00:08:24,760 --> 00:08:27,960 Speaker 6: into law. Republicans have often pushed that things could be 163 00:08:27,960 --> 00:08:31,000 Speaker 6: done through executive action, but Democrats are holding firm they 164 00:08:31,000 --> 00:08:34,000 Speaker 6: need to see that tangible legislation to get on board 165 00:08:34,000 --> 00:08:35,319 Speaker 6: with reopening DHS. 166 00:08:36,640 --> 00:08:40,480 Speaker 3: Tyler Kendall perfectly walking us through what was discussed last evening. 167 00:08:40,760 --> 00:08:43,800 Speaker 3: Tyler interesting in some cases what was not in our 168 00:08:43,840 --> 00:08:46,719 Speaker 3: remaining moment. We can start with China. By the way, 169 00:08:46,720 --> 00:08:48,480 Speaker 3: I don't want that box truck to knock you over. 170 00:08:48,520 --> 00:08:50,280 Speaker 3: If you're with us on YouTube, you gotta love what 171 00:08:50,320 --> 00:08:53,680 Speaker 3: happens on the North Lawn, Tyler, China was that intentionally 172 00:08:53,800 --> 00:08:56,320 Speaker 3: left out of the speech so the President didn't affect 173 00:08:56,320 --> 00:08:57,280 Speaker 3: the summit in April. 174 00:08:58,080 --> 00:09:01,960 Speaker 6: Well, we can't say for sure, the White House hasn't commented, 175 00:09:02,000 --> 00:09:04,719 Speaker 6: but pretty remarkable, Joe. This actually marks the first time 176 00:09:04,760 --> 00:09:08,080 Speaker 6: in over two decades that a US president hasn't directly 177 00:09:08,200 --> 00:09:12,520 Speaker 6: addressed US economic ties related to China. And as you're 178 00:09:12,559 --> 00:09:16,640 Speaker 6: alluding to here, the timing is perhaps raising some questions 179 00:09:16,679 --> 00:09:18,680 Speaker 6: as we look ahead to the next few weeks and 180 00:09:18,720 --> 00:09:20,480 Speaker 6: President Trump is set to come face to face with 181 00:09:20,720 --> 00:09:23,840 Speaker 6: Chinese President Xijingping and Beijing, marking the first time that 182 00:09:23,880 --> 00:09:27,079 Speaker 6: an American president will be in China since President Trump 183 00:09:27,120 --> 00:09:30,440 Speaker 6: went last time in twenty seventeen. And there's a lot 184 00:09:30,440 --> 00:09:33,920 Speaker 6: of talk here in Washington about how the presidents leverage 185 00:09:34,000 --> 00:09:37,840 Speaker 6: his hand going into this meeting, maybe undercut in the 186 00:09:37,840 --> 00:09:41,880 Speaker 6: wake of the Supreme Court ruling against his AIPA tariffs. Now, 187 00:09:41,920 --> 00:09:44,920 Speaker 6: to be sure, there are still rather high rates against 188 00:09:45,520 --> 00:09:48,800 Speaker 6: Chinese imports or analysts at Bloomberg Economics have crunched the numbers. 189 00:09:48,840 --> 00:09:52,239 Speaker 6: It's around twenty one percent. So you ask the administration, 190 00:09:52,360 --> 00:09:55,520 Speaker 6: they say, nothing's changed. But an interesting to pick up 191 00:09:55,559 --> 00:09:57,480 Speaker 6: on that China was not mentioned last night. 192 00:09:58,000 --> 00:10:01,560 Speaker 3: Yeah, absolutely, Tyler. Great to have you back among the 193 00:10:01,600 --> 00:10:04,120 Speaker 3: living today. Thanks for being with us here in the 194 00:10:04,200 --> 00:10:08,040 Speaker 3: update live from the White House, our friend Tyler KENDELEMP, Joe, Matthew, 195 00:10:08,080 --> 00:10:10,000 Speaker 3: and Washington will have much more straight ahead. 196 00:10:10,120 --> 00:10:12,280 Speaker 2: Stay with us on Balance of Power. We'll have much 197 00:10:12,320 --> 00:10:13,520 Speaker 2: more coming up after this. 198 00:10:17,800 --> 00:10:21,280 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 199 00:10:21,360 --> 00:10:24,800 Speaker 1: us live weekdays at noon and five pm Eastern on Apple, 200 00:10:24,840 --> 00:10:27,880 Speaker 1: Cockway and Android Auto with the Bloomberg Business app. You 201 00:10:27,920 --> 00:10:31,400 Speaker 1: can also listen live on Amazon Alexa from our flagship 202 00:10:31,440 --> 00:10:35,360 Speaker 1: New York station Just Say Alexa played Bloomberg eleven thirty. 203 00:10:36,840 --> 00:10:39,680 Speaker 9: We consider the topic of tariffs and what President Trump 204 00:10:39,720 --> 00:10:41,880 Speaker 9: suggested he will do. Let's hear from President Trump in 205 00:10:41,920 --> 00:10:43,559 Speaker 9: his own words on this subject in the State of 206 00:10:43,600 --> 00:10:44,480 Speaker 9: the Union last night. 207 00:10:45,120 --> 00:10:50,880 Speaker 4: Our nation is back, bigger, better, richer, and stronger. 208 00:10:49,880 --> 00:10:50,920 Speaker 2: Than ever before. 209 00:10:51,160 --> 00:10:54,160 Speaker 5: I used these tariffs took in hundreds of billions of 210 00:10:54,200 --> 00:10:57,959 Speaker 5: dollars to make great deals for our country, both economically 211 00:10:57,960 --> 00:11:02,640 Speaker 5: and on a national secure basis. Almost all countries and 212 00:11:02,720 --> 00:11:07,439 Speaker 5: corporations want to keep the deal that they already made, 213 00:11:07,840 --> 00:11:11,880 Speaker 5: right Scott, knowing that the legal power that I, as 214 00:11:12,080 --> 00:11:15,440 Speaker 5: President have to make a new deal could be far 215 00:11:15,559 --> 00:11:17,360 Speaker 5: worse for them. 216 00:11:17,000 --> 00:11:19,679 Speaker 2: And therefore they will continue to work along. 217 00:11:19,480 --> 00:11:23,840 Speaker 5: The same successful path that we had negotiated before the 218 00:11:23,880 --> 00:11:26,840 Speaker 5: Supreme Court's unfortunate involvement. 219 00:11:29,120 --> 00:11:31,240 Speaker 9: So for more on this subject and others, we turn 220 00:11:31,320 --> 00:11:34,360 Speaker 9: live to Capitol Hill where Republican Senator Steve Deanes is 221 00:11:34,440 --> 00:11:37,680 Speaker 9: joining us. He, of course, represents the state of Montana. Senator, 222 00:11:37,679 --> 00:11:40,120 Speaker 9: thank you for being here on Bloomberg TV and radio. 223 00:11:40,160 --> 00:11:41,840 Speaker 9: You have a seat on the Finance Committee. I know 224 00:11:41,840 --> 00:11:44,800 Speaker 9: you pay attention to the issues of tariffs closely, the 225 00:11:44,840 --> 00:11:47,199 Speaker 9: President said in his remarks last night. In addition to 226 00:11:47,240 --> 00:11:49,680 Speaker 9: outlining the justification for tariffs what he thinks it will 227 00:11:49,679 --> 00:11:53,480 Speaker 9: do for the economy, he said Congressional action will not 228 00:11:53,640 --> 00:11:57,120 Speaker 9: be necessary in terms of pursuing further tariffs after the 229 00:11:57,120 --> 00:12:01,480 Speaker 9: Supreme Court's ruling. Does that make you feel irrelevant. 230 00:12:01,080 --> 00:12:05,640 Speaker 10: Senator, Well, the President does have other executive authorities he 231 00:12:05,760 --> 00:12:09,920 Speaker 10: can deploy as relates to tariffs. I spent most of 232 00:12:09,960 --> 00:12:12,920 Speaker 10: my private sector career of twenty eight years before coming 233 00:12:12,960 --> 00:12:16,040 Speaker 10: to Washington and running global operations. I've worked for Procter 234 00:12:16,160 --> 00:12:18,920 Speaker 10: and Gamba for thirteen years and had an assignment over 235 00:12:18,960 --> 00:12:19,400 Speaker 10: in China. 236 00:12:19,440 --> 00:12:20,480 Speaker 2: For six of those years. 237 00:12:21,000 --> 00:12:23,280 Speaker 10: I was in the software business, having offices in both 238 00:12:23,320 --> 00:12:26,000 Speaker 10: Australia and Japan. So I've spent a lot of time 239 00:12:26,559 --> 00:12:29,440 Speaker 10: looking at global operations, looking at trade. 240 00:12:29,800 --> 00:12:30,679 Speaker 2: What the President is. 241 00:12:30,679 --> 00:12:33,640 Speaker 10: Doing, He's really confronting some of the uneven playing fields 242 00:12:33,679 --> 00:12:36,520 Speaker 10: have been around the world for many, many years. These 243 00:12:36,640 --> 00:12:39,320 Speaker 10: tariffs are a tremendous means to a better end, and 244 00:12:39,360 --> 00:12:43,320 Speaker 10: that is confronting high tariff barriers in many countries as 245 00:12:43,360 --> 00:12:45,480 Speaker 10: well as non tariff barriers. When you think about it, 246 00:12:45,880 --> 00:12:48,960 Speaker 10: ninety five percent of the world's consumers live outside the 247 00:12:49,040 --> 00:12:52,040 Speaker 10: United States. So we think about the future of agriculture 248 00:12:52,360 --> 00:12:55,000 Speaker 10: for beef, for wheat, barley, soybeans, corn, and so forth, 249 00:12:55,400 --> 00:12:58,880 Speaker 10: as well as other exports of American products including Boeing aircraft. 250 00:12:59,600 --> 00:13:01,200 Speaker 2: It seems we've got access to. 251 00:13:01,200 --> 00:13:03,240 Speaker 10: These markets because that really is where the future growth 252 00:13:03,280 --> 00:13:04,960 Speaker 10: will be for American businesses. 253 00:13:06,080 --> 00:13:08,000 Speaker 3: Well, Senator, I'm really glad to have you, and I'm 254 00:13:08,000 --> 00:13:10,000 Speaker 3: glad that you walked through some of your resume there 255 00:13:10,040 --> 00:13:12,280 Speaker 3: because your service at Procter and Gamble as well as 256 00:13:12,320 --> 00:13:15,679 Speaker 3: right Now Technologies is important to our audience here at 257 00:13:15,679 --> 00:13:18,040 Speaker 3: Bloomberg TV and Radio, and it's why I'd love to 258 00:13:18,040 --> 00:13:21,600 Speaker 3: hear more from you on the impact of a fifteen 259 00:13:21,640 --> 00:13:24,680 Speaker 3: percent global tariff that the President says he's pursuing specific 260 00:13:24,800 --> 00:13:27,240 Speaker 3: to India. I know that you've been an advocate for 261 00:13:27,280 --> 00:13:31,720 Speaker 3: strengthening US India trade partnerships, and I wonder if fifteen 262 00:13:31,800 --> 00:13:35,680 Speaker 3: percent puts a US India trade deal in jeopardy. 263 00:13:36,960 --> 00:13:39,599 Speaker 2: Well, I was just over in Delhi. 264 00:13:39,360 --> 00:13:41,840 Speaker 10: Three weeks ago. I was, in fact the new Great 265 00:13:41,880 --> 00:13:46,680 Speaker 10: Ambassador Sergio Gore, who just started his assignment there. I 266 00:13:46,760 --> 00:13:50,520 Speaker 10: was his first congressional visitor, and I've done business with 267 00:13:50,679 --> 00:13:53,720 Speaker 10: India for many years. It was very important that we're 268 00:13:53,760 --> 00:13:58,000 Speaker 10: able to stick the landing between Prime Minister Modi as 269 00:13:58,000 --> 00:14:00,199 Speaker 10: well as President Trump when they came to Green an 270 00:14:00,240 --> 00:14:02,240 Speaker 10: eighteen percent number. It was about two weeks after it 271 00:14:02,280 --> 00:14:07,280 Speaker 10: came back from Delhi. The India market is incredibly important. 272 00:14:07,480 --> 00:14:12,000 Speaker 10: The India relationship is incredibly important. India now forces the 273 00:14:12,000 --> 00:14:16,240 Speaker 10: most populated nation in the world, surpassing China. They're growing 274 00:14:16,240 --> 00:14:18,360 Speaker 10: at about seven percent in their GDP members. 275 00:14:18,440 --> 00:14:19,360 Speaker 2: So it's a big. 276 00:14:19,160 --> 00:14:22,680 Speaker 10: Market, big growth and look at longer term demographics, and 277 00:14:22,720 --> 00:14:25,320 Speaker 10: we have a very strategic market and partnership for the 278 00:14:25,400 --> 00:14:28,160 Speaker 10: United States, particularly in a part of the world where 279 00:14:28,160 --> 00:14:30,960 Speaker 10: we need to Countries like India and others on the 280 00:14:31,000 --> 00:14:33,480 Speaker 10: Pacific rim close to the United States as we think 281 00:14:33,520 --> 00:14:34,720 Speaker 10: about broader strategies. 282 00:14:36,520 --> 00:14:40,040 Speaker 9: Well, so, clearly the president's trade policies have implications for 283 00:14:40,240 --> 00:14:43,480 Speaker 9: relationships with other countries, India being one. But I'd also 284 00:14:43,560 --> 00:14:46,360 Speaker 9: like to get into the potential impact here at home. 285 00:14:46,400 --> 00:14:49,120 Speaker 9: As we know, polling shows us that Americans perceptions of 286 00:14:49,120 --> 00:14:52,280 Speaker 9: the economy right now, Senator are less than stellar under 287 00:14:52,320 --> 00:14:55,720 Speaker 9: Republican stewardship. I know you are no longer in charge 288 00:14:55,720 --> 00:14:59,040 Speaker 9: of the NRSC this cycle at least, but given that, 289 00:14:59,120 --> 00:15:01,120 Speaker 9: you know how difficult it is to look at a 290 00:15:01,160 --> 00:15:03,520 Speaker 9: map and make and look to see where you can defend, 291 00:15:03,560 --> 00:15:06,040 Speaker 9: where you can go on offense. Do policies like this 292 00:15:06,200 --> 00:15:09,640 Speaker 9: make it harder for Republicans to confidently say they can 293 00:15:09,680 --> 00:15:11,160 Speaker 9: retain the majority in November? 294 00:15:12,080 --> 00:15:15,440 Speaker 10: Well, midterms are just always tougher whenever you are the 295 00:15:15,480 --> 00:15:17,880 Speaker 10: party in power in the White House. That's been the case, 296 00:15:17,920 --> 00:15:20,960 Speaker 10: no matter of Democrat or Republican. But face it, though, 297 00:15:21,000 --> 00:15:23,000 Speaker 10: you know, we were dealt a tough hand coming off 298 00:15:23,040 --> 00:15:27,120 Speaker 10: the Biden years with massive inflation that much of that 299 00:15:27,240 --> 00:15:31,320 Speaker 10: was caused by the incredibly large stimulus bills, These multi 300 00:15:31,400 --> 00:15:34,800 Speaker 10: trillion dollar stimulus bills that we fought hard against. In fact, 301 00:15:34,840 --> 00:15:39,600 Speaker 10: Laurence Summers, Clinton's former secretary of Treasury, warned Democrats this 302 00:15:39,680 --> 00:15:43,320 Speaker 10: would be inflationary, and indeed it was. Now I've gotten inflation, 303 00:15:43,480 --> 00:15:45,920 Speaker 10: you know, numbers like two point four percent. Definitely inflation 304 00:15:45,960 --> 00:15:48,400 Speaker 10: has come down, but still stuck with some of these 305 00:15:48,440 --> 00:15:52,240 Speaker 10: fundamental issues of expensive houses and expensive clothes, expensive groceries. 306 00:15:52,600 --> 00:15:53,960 Speaker 2: But what are you going to do about that? A 307 00:15:54,000 --> 00:15:54,560 Speaker 2: couple of things. 308 00:15:54,640 --> 00:15:57,880 Speaker 10: Number One, President Trump is on least certainly more made 309 00:15:57,880 --> 00:16:00,720 Speaker 10: in America energy. We've seen gas prices now the lowest 310 00:16:00,760 --> 00:16:03,080 Speaker 10: in five years. That's an important win for the American people, 311 00:16:03,080 --> 00:16:05,560 Speaker 10: something you're reminded of usually weekly when you're gassing up 312 00:16:05,600 --> 00:16:08,800 Speaker 10: your vehicle. Number Two, when you address affordability, part of 313 00:16:08,840 --> 00:16:11,360 Speaker 10: the affordability equation is getting more money in the pockets 314 00:16:11,400 --> 00:16:14,240 Speaker 10: of the American people, and we've seen that with the 315 00:16:14,960 --> 00:16:17,800 Speaker 10: Working Family tax cut, build is just now starting to 316 00:16:17,800 --> 00:16:20,360 Speaker 10: go into effect. These are new tax laws that started 317 00:16:20,400 --> 00:16:23,280 Speaker 10: in twenty twenty six. The average US family is going 318 00:16:23,320 --> 00:16:25,440 Speaker 10: to see about a thirty seven hundred dollars a year 319 00:16:25,640 --> 00:16:30,320 Speaker 10: benefit from lower taxes. Of course, that's Social Security, no 320 00:16:30,440 --> 00:16:32,760 Speaker 10: tax for ninety percent of seniors and so security affected 321 00:16:32,760 --> 00:16:35,360 Speaker 10: by that. The no tax on tips, the no tax 322 00:16:35,400 --> 00:16:38,200 Speaker 10: on overtime. Literally some of the benefits that have yet 323 00:16:38,240 --> 00:16:40,200 Speaker 10: to be realized by the American people, they're going to 324 00:16:40,240 --> 00:16:42,000 Speaker 10: see more of that is to get close to the election. 325 00:16:42,400 --> 00:16:46,000 Speaker 10: So affordability is not just reducing prices, but also providing 326 00:16:46,000 --> 00:16:47,800 Speaker 10: more dollars in the paychecks for the American people to 327 00:16:47,840 --> 00:16:48,600 Speaker 10: close that gap. 328 00:16:49,760 --> 00:16:53,280 Speaker 3: You know, it's interesting when we talk about affordability and 329 00:16:53,640 --> 00:16:56,480 Speaker 3: the impact that tariffs may or may not have on inflation. 330 00:16:56,560 --> 00:16:59,640 Speaker 3: And we've seen inflation kind of hanging around this very 331 00:16:59,640 --> 00:17:02,320 Speaker 3: stub and spot a little over two percent going back 332 00:17:02,360 --> 00:17:04,679 Speaker 3: to when the president took office. It hasn't really changed 333 00:17:04,680 --> 00:17:07,120 Speaker 3: a lot in the last year. And when you hear 334 00:17:07,160 --> 00:17:11,840 Speaker 3: from the likes of Procter and Gamble aforementioned expecting tariffs 335 00:17:11,880 --> 00:17:15,879 Speaker 3: to cost some four hundred million dollars after taxes in 336 00:17:15,920 --> 00:17:18,719 Speaker 3: fiscal twenty twenty six, how do you get to that 337 00:17:18,840 --> 00:17:23,280 Speaker 3: last mile, Senator, to where consumers are more comfortable going 338 00:17:23,320 --> 00:17:23,840 Speaker 3: to the store. 339 00:17:25,000 --> 00:17:28,920 Speaker 10: Yeah, well, it's again we're encouraged by the reduction we're 340 00:17:28,920 --> 00:17:31,520 Speaker 10: seeing an energy price. Really important part of the family 341 00:17:31,560 --> 00:17:34,760 Speaker 10: budget is what's the price at the gas pump, and 342 00:17:35,040 --> 00:17:38,880 Speaker 10: again you're going to see more dollars net dollars ending 343 00:17:38,960 --> 00:17:42,320 Speaker 10: up in the American people's paychecks as these tax cuts 344 00:17:42,400 --> 00:17:44,679 Speaker 10: kick in. The problem is it's early, you know, you 345 00:17:44,720 --> 00:17:47,399 Speaker 10: haven't seen that yet kick in. Is the full extent 346 00:17:47,760 --> 00:17:50,520 Speaker 10: that's coming, and that the'll be part of helping mitigate 347 00:17:50,560 --> 00:17:54,199 Speaker 10: the the high inflation years that we inherited from the 348 00:17:54,200 --> 00:17:55,040 Speaker 10: Biden administration. 349 00:17:56,800 --> 00:18:00,359 Speaker 9: Well, Senator, you've referenced lower gas prices and energy prices 350 00:18:00,400 --> 00:18:02,800 Speaker 9: overall a few times, and I wonder how much that 351 00:18:03,520 --> 00:18:06,240 Speaker 9: could be disrupted by what could potentially happen in the 352 00:18:06,280 --> 00:18:09,119 Speaker 9: Middle East, as the President is openly suggesting, if diplomacy 353 00:18:09,200 --> 00:18:12,439 Speaker 9: does not work, we could see military action in Iran 354 00:18:12,520 --> 00:18:16,520 Speaker 9: that could threaten to disrupt supply coming out of that region. Senator, 355 00:18:16,520 --> 00:18:18,479 Speaker 9: do you think that is advisable given what you are 356 00:18:18,520 --> 00:18:20,879 Speaker 9: saying on how lower energy prices are key to the 357 00:18:20,920 --> 00:18:21,960 Speaker 9: economic pitch here. 358 00:18:23,040 --> 00:18:25,440 Speaker 10: Well, we're such a different position now than we were 359 00:18:25,600 --> 00:18:26,359 Speaker 10: many years ago. 360 00:18:27,119 --> 00:18:29,240 Speaker 2: You go back to the War. 361 00:18:29,040 --> 00:18:31,560 Speaker 10: Of Yam Kappur in nineteen seventy three, when you had 362 00:18:31,800 --> 00:18:33,360 Speaker 10: Arab countries and the oil embarger. 363 00:18:33,400 --> 00:18:36,520 Speaker 2: You saw a quadrupling of price of oil. It created 364 00:18:36,520 --> 00:18:37,480 Speaker 2: a massive inflation. 365 00:18:37,600 --> 00:18:40,040 Speaker 10: A thirty year fixed mortgage back in nineteen eighty one 366 00:18:40,160 --> 00:18:44,760 Speaker 10: was eighteen point six percent. What's true today, though, is 367 00:18:44,800 --> 00:18:51,080 Speaker 10: that we've decoupled our country from many of the global markets, 368 00:18:51,119 --> 00:18:53,600 Speaker 10: has released to oil. We were overly dependent on the Middleast. 369 00:18:53,640 --> 00:18:56,639 Speaker 10: Today the United States is the largest producer of oil 370 00:18:56,960 --> 00:18:59,920 Speaker 10: and old ridas in the world, and that helps soften 371 00:19:00,280 --> 00:19:03,200 Speaker 10: the blows if there is any kind of connectuativity going 372 00:19:03,240 --> 00:19:06,520 Speaker 10: on in Iran. So I'm not as concerned about what 373 00:19:06,520 --> 00:19:08,600 Speaker 10: happened oil price is given the fact that we have 374 00:19:08,680 --> 00:19:11,320 Speaker 10: done a stellar job, thanks to President Trump and the 375 00:19:11,359 --> 00:19:15,760 Speaker 10: American energy industry, of becoming much more self deficient, self sufficient, 376 00:19:16,119 --> 00:19:17,760 Speaker 10: and we are now energy dominant. 377 00:19:17,800 --> 00:19:20,080 Speaker 2: We are an exporter of energy where once upon a 378 00:19:20,080 --> 00:19:21,240 Speaker 2: time we were in that importer. 379 00:19:22,640 --> 00:19:25,600 Speaker 3: To follow on that, Senator Jans, what should be the 380 00:19:25,600 --> 00:19:30,280 Speaker 3: trigger for a strike against Iran, Well. 381 00:19:30,080 --> 00:19:33,800 Speaker 10: That's a heady question, I'll tell you. The present I 382 00:19:33,840 --> 00:19:37,120 Speaker 10: know is looking at all options. I've spent a fair 383 00:19:37,119 --> 00:19:39,000 Speaker 10: amount of time in the Middle Least. One thing I 384 00:19:39,040 --> 00:19:41,679 Speaker 10: do know is you can't trust the current Iranian regime. 385 00:19:41,760 --> 00:19:44,520 Speaker 10: They are the leading sponsor terror in the world. This 386 00:19:44,760 --> 00:19:48,639 Speaker 10: regime that preaches death to America. They call the United 387 00:19:48,640 --> 00:19:51,399 Speaker 10: States the big Satan. They call Israel the little Satan. 388 00:19:51,880 --> 00:19:54,280 Speaker 10: I don't trust this regime. There's one thing this regime 389 00:19:54,320 --> 00:19:57,320 Speaker 10: does understand and respect, and that strength, and that's force. 390 00:19:58,040 --> 00:20:00,200 Speaker 10: So I know there's a lot of variable there's a 391 00:20:00,200 --> 00:20:02,640 Speaker 10: lot of consideration the President has to take into account, 392 00:20:03,480 --> 00:20:05,680 Speaker 10: but I do not trust the current regime. I was 393 00:20:05,720 --> 00:20:08,040 Speaker 10: at the Munich Security Conference here a week and a 394 00:20:08,080 --> 00:20:13,479 Speaker 10: half ago. There were two hundred thousand Iranians protesting against 395 00:20:13,560 --> 00:20:16,240 Speaker 10: the current regime in the streets of Munich, Germany. 396 00:20:16,280 --> 00:20:17,720 Speaker 2: It was an incredible sight. 397 00:20:18,440 --> 00:20:22,280 Speaker 10: So there's a lot of energy right now to change 398 00:20:22,320 --> 00:20:27,520 Speaker 10: the regime in Tehran. Most Iranians are pro West, pro American, 399 00:20:27,600 --> 00:20:31,040 Speaker 10: but you've got a regime, their tyrants, they're brutal, they're 400 00:20:31,040 --> 00:20:32,879 Speaker 10: going to be hanging students. I understand here in the 401 00:20:32,880 --> 00:20:36,240 Speaker 10: next forty eight hours we've been protesting. This regime needs 402 00:20:36,280 --> 00:20:38,720 Speaker 10: to go. The Iranian people need to have the ability 403 00:20:38,760 --> 00:20:40,600 Speaker 10: to topple that regime. That's not of the United States 404 00:20:40,640 --> 00:20:40,760 Speaker 10: to do. 405 00:20:40,960 --> 00:20:42,200 Speaker 2: That's about the Iranian people. 406 00:20:42,560 --> 00:20:45,800 Speaker 10: But I know President Trump is playing hardball right now 407 00:20:46,080 --> 00:20:49,080 Speaker 10: with the Iranian regime, as he should. 408 00:20:49,440 --> 00:20:52,520 Speaker 2: No I wonder if that hanging might end up being 409 00:20:52,720 --> 00:20:53,639 Speaker 2: the trigger. Senator. 410 00:20:53,680 --> 00:20:55,840 Speaker 3: It's great to have you back and we appreciate your insight. 411 00:20:55,920 --> 00:20:58,800 Speaker 3: Steve Danes, Republican from Montana, where it's live from Capitol 412 00:20:58,840 --> 00:21:01,440 Speaker 3: Hill on this day after the State of the Union address, 413 00:21:01,440 --> 00:21:04,000 Speaker 3: we'll hear from a Democrat later this hour in Maggie 414 00:21:04,040 --> 00:21:06,919 Speaker 3: Goodland or the congresswoman from New Hampshire will join us. 415 00:21:07,000 --> 00:21:09,160 Speaker 2: Stay with us on Balance of Power. We'll have much 416 00:21:09,160 --> 00:21:10,360 Speaker 2: more coming up after this. 417 00:21:15,720 --> 00:21:19,040 Speaker 1: You're listening to the Bloomberg Balance of Power podcast ket 418 00:21:19,160 --> 00:21:22,680 Speaker 1: Says live weekdays at noon and five pm Eastern on Apple, 419 00:21:22,760 --> 00:21:26,119 Speaker 1: Cockley and Android autto with the Bloomberg Business app. Listen 420 00:21:26,160 --> 00:21:29,240 Speaker 1: on demand wherever you get your podcasts, or watch us 421 00:21:29,359 --> 00:21:30,320 Speaker 1: live on YouTube. 422 00:21:31,720 --> 00:21:34,440 Speaker 9: I am Kaylee Lines alongside Joe Matthew here in Washington, 423 00:21:34,480 --> 00:21:36,760 Speaker 9: where we are fresh off the President's State of the 424 00:21:36,880 --> 00:21:38,879 Speaker 9: Union address, where we were looking for clues on a 425 00:21:39,000 --> 00:21:43,640 Speaker 9: number of subjects relevant to financial markets and the economy. Affordability, 426 00:21:43,680 --> 00:21:47,159 Speaker 9: of course, was looming large, but geopolitical issues did feature 427 00:21:47,520 --> 00:21:50,520 Speaker 9: as well, specifically when it comes to Iran amid an 428 00:21:50,520 --> 00:21:54,439 Speaker 9: amassing of military force from the United States to the 429 00:21:54,480 --> 00:21:57,639 Speaker 9: Middle East, knowing that diplomacy is still being given a 430 00:21:57,720 --> 00:21:59,720 Speaker 9: chance here if you listen at least to President Trump. 431 00:21:59,720 --> 00:22:02,320 Speaker 9: There are going to be talks in Geneva once again 432 00:22:02,320 --> 00:22:06,040 Speaker 9: tomorrow between the US and Iran. Jared Kushner and Steve Whitcoff, 433 00:22:06,160 --> 00:22:10,399 Speaker 9: envoys for the President, will be participating in those. But 434 00:22:10,640 --> 00:22:13,000 Speaker 9: President Trump made it pretty clear that if diplomacy does 435 00:22:13,000 --> 00:22:17,480 Speaker 9: not prevail, he is not going to hold back from 436 00:22:17,520 --> 00:22:21,600 Speaker 9: taking action, as he described the threat from Iran, which 437 00:22:21,640 --> 00:22:25,919 Speaker 9: he also looked back on the attack back in June 438 00:22:25,920 --> 00:22:29,239 Speaker 9: that the US conducted on Iran's nuclear capabilities. Specifically, this 439 00:22:29,280 --> 00:22:31,680 Speaker 9: is how the President characterized the situation. 440 00:22:31,359 --> 00:22:37,280 Speaker 2: Last night after Midnight Hammer. They were warned to make no. 441 00:22:37,320 --> 00:22:41,080 Speaker 5: Future attempts to rebuild their weapons program, in a particular 442 00:22:42,000 --> 00:22:46,520 Speaker 5: nuclear weapons, Yet they continue starting it all over. We 443 00:22:46,640 --> 00:22:49,080 Speaker 5: wiped it out, and they want to start all over again, 444 00:22:50,200 --> 00:22:54,359 Speaker 5: and are at this moment again pursuing their sinis to ambitions. 445 00:22:54,480 --> 00:22:56,840 Speaker 5: We are in negotiations with him. They want to make 446 00:22:56,840 --> 00:23:00,280 Speaker 5: a deal, but we haven't heard those secret words. Will 447 00:23:00,280 --> 00:23:05,480 Speaker 5: never have a nuclear weapon. My preference is to solve 448 00:23:05,560 --> 00:23:07,680 Speaker 5: this problem through diplomacy. 449 00:23:08,520 --> 00:23:09,600 Speaker 2: But one thing is certain. 450 00:23:09,760 --> 00:23:13,080 Speaker 5: I will never allow the world's number one sponsor of terror, 451 00:23:13,160 --> 00:23:16,240 Speaker 5: which they are by far to have a nuclear weapon. 452 00:23:17,640 --> 00:23:20,320 Speaker 3: That's where we start our conversation with an important voice 453 00:23:20,320 --> 00:23:24,399 Speaker 3: from Capitol Hill and from the national security space in 454 00:23:24,480 --> 00:23:28,479 Speaker 3: Congresswoman Maggie Goodlander, the Democrat from New Hampshire, joins us 455 00:23:28,520 --> 00:23:31,439 Speaker 3: now live on Bloomberg TV and Radio. And Congresswoman, it's 456 00:23:31,480 --> 00:23:34,080 Speaker 3: great to see you. Welcome back to Bloomberg. Of course, 457 00:23:34,119 --> 00:23:37,520 Speaker 3: a member of the Armed Services Committee and small business 458 00:23:37,600 --> 00:23:41,719 Speaker 3: for that matter. I note your status as a military veteran, 459 00:23:41,800 --> 00:23:45,760 Speaker 3: a former naval officer, an intelligence officer who was also 460 00:23:46,119 --> 00:23:49,080 Speaker 3: an advisor in the National security space. Now you represent 461 00:23:49,119 --> 00:23:52,359 Speaker 3: a state that is very sensitive to the military community 462 00:23:52,600 --> 00:23:56,440 Speaker 3: in New Hampshire. Do you believe that strikes against Iran 463 00:23:56,480 --> 00:23:57,240 Speaker 3: are inevitable? 464 00:23:58,880 --> 00:24:01,880 Speaker 7: Well, thanks so much for having me. You know, as 465 00:24:01,880 --> 00:24:05,640 Speaker 7: I listened to the President last night, it was really 466 00:24:05,640 --> 00:24:08,600 Speaker 7: hard to square his statements with the way that he's 467 00:24:08,920 --> 00:24:13,080 Speaker 7: conducting himself when it comes to Iran. We know that 468 00:24:13,480 --> 00:24:16,560 Speaker 7: decisions about war and peace, these are the most consequential 469 00:24:16,600 --> 00:24:19,879 Speaker 7: decisions that a person in public trust, at a position 470 00:24:19,880 --> 00:24:22,960 Speaker 7: of public trust could ever make. These are questions about 471 00:24:22,960 --> 00:24:27,520 Speaker 7: American lives and about American taxpayer dollars. The President has 472 00:24:27,560 --> 00:24:31,199 Speaker 7: not yet been clear about what his objectives are in Iran, 473 00:24:31,240 --> 00:24:33,520 Speaker 7: what are our goals here? He said again last night 474 00:24:33,960 --> 00:24:38,680 Speaker 7: that Iran's nuclear program has been obliterated, so it doesn't 475 00:24:38,760 --> 00:24:42,080 Speaker 7: quite square up with what his objectives might be. You know, 476 00:24:42,119 --> 00:24:44,800 Speaker 7: the President has not answered the question of what he 477 00:24:44,840 --> 00:24:47,159 Speaker 7: would be prepared to do. And the reason that the 478 00:24:47,200 --> 00:24:51,080 Speaker 7: Constitution in trusts Congress with the power to declare war 479 00:24:51,600 --> 00:24:54,520 Speaker 7: and with important war making powers is to be a 480 00:24:54,640 --> 00:24:57,040 Speaker 7: check and to make sure that we get the answer right. 481 00:24:57,200 --> 00:25:00,399 Speaker 7: That's exactly why we have the War Powers resolution, and 482 00:25:00,440 --> 00:25:04,439 Speaker 7: why presidents rely on the check of Congress and the 483 00:25:04,480 --> 00:25:09,119 Speaker 7: blessing of Congress before proceeding with these most consequential questions. 484 00:25:10,520 --> 00:25:12,320 Speaker 7: And the final thing that he hasn't answered is what 485 00:25:12,440 --> 00:25:16,480 Speaker 7: comes next. And look, the American people do not want 486 00:25:16,480 --> 00:25:19,040 Speaker 7: to be in another forever war that's going to cost 487 00:25:19,119 --> 00:25:23,160 Speaker 7: us in American lives and in taxpayer dollars. So these 488 00:25:23,200 --> 00:25:26,359 Speaker 7: are basic questions that the President has not given clear 489 00:25:26,440 --> 00:25:28,960 Speaker 7: answers to and that's a huge problem. 490 00:25:30,760 --> 00:25:33,280 Speaker 9: Well, so when we consider the American lives, knowing that 491 00:25:33,320 --> 00:25:38,000 Speaker 9: more Americans have been deployed to the region, the financial 492 00:25:38,080 --> 00:25:40,800 Speaker 9: Times had reporting today citing an insider with the Iranian 493 00:25:40,840 --> 00:25:43,600 Speaker 9: regime suggesting that Iran, and this is a quote, would 494 00:25:43,640 --> 00:25:47,439 Speaker 9: move toward escalation, targeting anything within reach from US Basis 495 00:25:47,440 --> 00:25:50,760 Speaker 9: to the Strait of Hormuz and American warships in response 496 00:25:51,280 --> 00:25:55,000 Speaker 9: if attacked. If you're on an American warship in that 497 00:25:55,040 --> 00:25:59,320 Speaker 9: region right now, congresswoman, are you prepared to withstand such 498 00:25:59,320 --> 00:26:02,159 Speaker 9: an attack? Is it inevitable that if iron were to 499 00:26:02,240 --> 00:26:04,240 Speaker 9: choose that course of action in response, that we would 500 00:26:04,240 --> 00:26:05,560 Speaker 9: see the loss of American life. 501 00:26:07,000 --> 00:26:11,160 Speaker 7: Look, we have the greatest and most powerful military in 502 00:26:11,200 --> 00:26:16,199 Speaker 7: the history of the world. The United States military is extraordinary, 503 00:26:17,200 --> 00:26:23,760 Speaker 7: extremely capable, unmatched right now. But the fact that we're 504 00:26:23,800 --> 00:26:25,880 Speaker 7: reading in news reports. I'm a member of the Armed 505 00:26:25,880 --> 00:26:29,880 Speaker 7: Services Committee, and I'm getting my best information from news 506 00:26:30,000 --> 00:26:34,040 Speaker 7: articles about what the terms of the debate are here, 507 00:26:34,760 --> 00:26:37,399 Speaker 7: what our objectives are, what our military planning looks like, 508 00:26:38,200 --> 00:26:41,639 Speaker 7: and from news reports. I think there is understandable and 509 00:26:41,800 --> 00:26:45,000 Speaker 7: grave concern about what the range of military options could 510 00:26:45,000 --> 00:26:49,600 Speaker 7: look like. This is why Congress is a check for 511 00:26:49,640 --> 00:26:53,400 Speaker 7: the president. This is why the president should come to Congress. 512 00:26:53,720 --> 00:26:57,399 Speaker 7: His power to wage war is not boundless, just like 513 00:26:57,440 --> 00:27:01,080 Speaker 7: his power to wage trade wars and to tax the 514 00:27:01,080 --> 00:27:04,440 Speaker 7: American people with tariffs is not boundless, and he was 515 00:27:04,480 --> 00:27:06,840 Speaker 7: reminded of that last week, and it would be wise 516 00:27:06,880 --> 00:27:08,920 Speaker 7: for him to come to the Congress and to have 517 00:27:09,000 --> 00:27:11,879 Speaker 7: a real conversation about what are objectives here, because the 518 00:27:11,960 --> 00:27:15,520 Speaker 7: truth is, there is strong bipartisan support for the basic 519 00:27:15,600 --> 00:27:19,600 Speaker 7: proposition that this Iranian regime, which is a brutal and 520 00:27:19,720 --> 00:27:22,760 Speaker 7: determined enemy of the United States, should never get a 521 00:27:22,840 --> 00:27:26,800 Speaker 7: nuclear weapon. There is strong bipartisan support for that proposition. 522 00:27:27,359 --> 00:27:30,040 Speaker 7: But the way the President has chosen to go about this, 523 00:27:30,680 --> 00:27:34,320 Speaker 7: and you saw it on full display in his State 524 00:27:34,359 --> 00:27:37,240 Speaker 7: of the Union last night, which was the most divisive 525 00:27:37,320 --> 00:27:39,960 Speaker 7: State of the Union in American history, in addition to 526 00:27:40,000 --> 00:27:44,359 Speaker 7: being the longest. He's not building consensus on an issue 527 00:27:44,600 --> 00:27:49,119 Speaker 7: that really needs buy in from both branches of our 528 00:27:49,200 --> 00:27:53,119 Speaker 7: government that are entrusted by the American people and our constitution. 529 00:27:53,600 --> 00:27:58,000 Speaker 3: With war powers, well, so you're not being briefed on anything, Congresswoman, 530 00:27:58,040 --> 00:28:00,439 Speaker 3: as a member of the Armed Services Committee, which with 531 00:28:00,480 --> 00:28:03,119 Speaker 3: everything we've heard from other members of the committee, even 532 00:28:03,160 --> 00:28:05,040 Speaker 3: on both sides of the aisle, this is limited to 533 00:28:05,080 --> 00:28:07,600 Speaker 3: the Gang of Eight. I guess so far what do 534 00:28:07,640 --> 00:28:10,320 Speaker 3: you then make with just based on your experience and 535 00:28:10,440 --> 00:28:12,639 Speaker 3: what you're hearing in Washington, what do you make of 536 00:28:12,680 --> 00:28:16,360 Speaker 3: the conventional wisdom that no nation, including this one, has 537 00:28:16,400 --> 00:28:20,480 Speaker 3: ever assembled this much military might in one place without 538 00:28:20,560 --> 00:28:21,240 Speaker 3: using it. 539 00:28:23,920 --> 00:28:26,560 Speaker 7: Well, I'm a student of history, and history has got 540 00:28:26,560 --> 00:28:29,520 Speaker 7: to be our guide. But in my job now, I'm 541 00:28:29,560 --> 00:28:32,760 Speaker 7: a congresswoman who is going to demand answers from a 542 00:28:32,800 --> 00:28:38,280 Speaker 7: president who is refusing to recognize our role under this 543 00:28:38,360 --> 00:28:42,840 Speaker 7: Constitution in questions of war and peace. And what I 544 00:28:42,880 --> 00:28:45,040 Speaker 7: know for sure is that the American people do not 545 00:28:45,320 --> 00:28:48,840 Speaker 7: want to go into another forever war. They don't want 546 00:28:48,840 --> 00:28:51,680 Speaker 7: to put the lives of American service members and their 547 00:28:51,720 --> 00:28:56,440 Speaker 7: taxpayer dollars on the line for a half baked and 548 00:28:57,040 --> 00:29:01,560 Speaker 7: frankly unclear strategy. And it doesn't have to be this way, 549 00:29:01,720 --> 00:29:05,080 Speaker 7: And it's always the right time to do the right thing, 550 00:29:05,360 --> 00:29:07,120 Speaker 7: and I hope the President will do that. 551 00:29:09,000 --> 00:29:09,240 Speaker 4: Well. 552 00:29:09,240 --> 00:29:12,320 Speaker 9: Congresswoman, as we consider where American tax dollars are directed, 553 00:29:12,360 --> 00:29:14,320 Speaker 9: there is not a dollar right now going to funding 554 00:29:14,400 --> 00:29:17,280 Speaker 9: the Department of Homeland Security, which remains shut down now 555 00:29:17,320 --> 00:29:20,120 Speaker 9: for a twelve day amid a dispute between your party 556 00:29:20,160 --> 00:29:23,320 Speaker 9: and the White House over reforms to ICE. Do you 557 00:29:23,400 --> 00:29:26,640 Speaker 9: see an end in sight here, Congresswoman, Because as you 558 00:29:26,760 --> 00:29:29,800 Speaker 9: cite needing to see news articles to see what is 559 00:29:29,800 --> 00:29:32,280 Speaker 9: happening with regard to Iran, I don't even think there 560 00:29:32,280 --> 00:29:35,120 Speaker 9: are many news articles that can say definitively that there's 561 00:29:35,120 --> 00:29:37,720 Speaker 9: been any progress made in these talks or the talks 562 00:29:37,760 --> 00:29:41,320 Speaker 9: even happening between your leadership and the administration. 563 00:29:42,920 --> 00:29:46,200 Speaker 7: Well, the first thing to say is, there is no 564 00:29:46,320 --> 00:29:49,960 Speaker 7: reason we have agreement on funding all of the law 565 00:29:50,040 --> 00:29:53,120 Speaker 7: abiding components of the Department of Homeland Security. There is 566 00:29:53,200 --> 00:29:58,960 Speaker 7: no reason, good reason other than to cause unnecessary pain 567 00:29:59,120 --> 00:30:04,480 Speaker 7: to hard working federal public servants for the speaker to 568 00:30:03,280 --> 00:30:07,040 Speaker 7: have to have, you know, hit the gabble and sent 569 00:30:07,920 --> 00:30:12,920 Speaker 7: the House representatives home today without funding TSA, FEMA, and 570 00:30:13,000 --> 00:30:15,760 Speaker 7: the vast majority of the Department of Homeland Security, which 571 00:30:16,280 --> 00:30:19,880 Speaker 7: is not an issue here. The issue here is really 572 00:30:19,920 --> 00:30:26,120 Speaker 7: about putting into place common sense guardrails, common sense checks 573 00:30:26,240 --> 00:30:31,400 Speaker 7: on the powers that ICE and CBP have been exercising 574 00:30:31,480 --> 00:30:37,080 Speaker 7: in communities across this country, unchecked powers. You know, yesterday 575 00:30:37,120 --> 00:30:40,840 Speaker 7: what happened in the state of New Hampshire, I think 576 00:30:40,920 --> 00:30:43,280 Speaker 7: really should be a model for the rest of the country. 577 00:30:43,040 --> 00:30:46,920 Speaker 7: We learned in press reports at the end of December 578 00:30:47,480 --> 00:30:52,840 Speaker 7: that ICE had launched a nationwide campaign to commandeer industrial 579 00:30:52,840 --> 00:30:58,440 Speaker 7: warehouses to warehouse human beings, and quickly and with one 580 00:30:58,520 --> 00:31:01,800 Speaker 7: voice for Republicans and Democrats in every corner of our 581 00:31:01,840 --> 00:31:05,600 Speaker 7: state spoke out against this to say, you cannot proceed 582 00:31:05,640 --> 00:31:12,240 Speaker 7: with this kind of expensive, questionable, un American plan without 583 00:31:12,280 --> 00:31:16,120 Speaker 7: the consent and without the buy in of local communities. 584 00:31:16,240 --> 00:31:21,479 Speaker 7: And yesterday we were victorious in this campaign. These are 585 00:31:21,520 --> 00:31:25,479 Speaker 7: the kinds of common sense checks that the American people 586 00:31:25,680 --> 00:31:29,800 Speaker 7: need and deserve from federal law enforcement. Public safety, at 587 00:31:29,840 --> 00:31:32,240 Speaker 7: the end of the day, depends on public trust, and 588 00:31:32,360 --> 00:31:36,120 Speaker 7: public trust is impossible when you have a federal law 589 00:31:36,200 --> 00:31:40,680 Speaker 7: enforcement apparatus that is sending massed agents into our communities, 590 00:31:40,960 --> 00:31:45,640 Speaker 7: shooting American citizens stead in broad daylight, defying the Fourth Amendment, 591 00:31:46,600 --> 00:31:50,760 Speaker 7: by breaking into Americans homes without judicial warrants, surveying our 592 00:31:50,800 --> 00:31:54,800 Speaker 7: communities in ways we've never seen before except in other countries. 593 00:31:55,200 --> 00:31:57,840 Speaker 7: I mean, what we are asking for are common sense 594 00:31:57,960 --> 00:32:03,440 Speaker 7: guardrails that have the overwhelming support of the American people. 595 00:32:03,600 --> 00:32:06,000 Speaker 7: And it is a decision that the Speaker and the 596 00:32:06,040 --> 00:32:12,800 Speaker 7: President have made to inflict pain on public servants who 597 00:32:12,800 --> 00:32:16,240 Speaker 7: shouldn't be working a day without a paycheck at the 598 00:32:16,240 --> 00:32:19,200 Speaker 7: same moment that members of Congress are getting paid without 599 00:32:19,240 --> 00:32:21,960 Speaker 7: actually doing their jobs, which is why I will never 600 00:32:22,040 --> 00:32:26,160 Speaker 7: accept a paycheck when any public, federal public service is 601 00:32:26,200 --> 00:32:30,320 Speaker 7: that is at risk of working without Paige just dead wrong. 602 00:32:30,640 --> 00:32:33,600 Speaker 7: The incentives are backwards, and we've got to buy, prayers 603 00:32:33,600 --> 00:32:36,160 Speaker 7: and build to fix that. But in the meantime, there 604 00:32:36,240 --> 00:32:39,160 Speaker 7: is a path, and this is the work of legislating. 605 00:32:39,240 --> 00:32:42,000 Speaker 7: We've got to keep trying to build support to get 606 00:32:42,000 --> 00:32:44,240 Speaker 7: on it, but it does very much exist. It's very 607 00:32:44,240 --> 00:32:44,680 Speaker 7: clear to me. 608 00:32:46,360 --> 00:32:48,480 Speaker 9: All right, Congressman, thank you so much for joining us. 609 00:32:48,520 --> 00:32:51,920 Speaker 9: Democratic Congressman Maggie Goodlander of New Hampshire. 610 00:32:55,920 --> 00:32:58,360 Speaker 2: Thanks for listening to the Balance of Power podcast. 611 00:32:59,000 --> 00:33:02,120 Speaker 3: Make sure to subscribe if you haven't already, at Apple, Spotify, 612 00:33:02,200 --> 00:33:04,760 Speaker 3: or wherever you get your podcasts, and you can find 613 00:33:04,840 --> 00:33:08,080 Speaker 3: us live every weekday from Washington, DC at noontime Eastern 614 00:33:08,360 --> 00:33:09,920 Speaker 3: at Bloomberg dot com.