1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,800 --> 00:00:10,600 Speaker 2: Congressman French Hill, chairman of the House Financial Committee on 3 00:00:10,600 --> 00:00:14,280 Speaker 2: Financial Services, joined us now for more. Congressman Hill, welcome 4 00:00:14,320 --> 00:00:15,920 Speaker 2: to the program. So we've got a lot to get through, 5 00:00:15,960 --> 00:00:17,560 Speaker 2: and I just wanted to start with the independence of 6 00:00:17,600 --> 00:00:20,080 Speaker 2: the Federal serve and the role that your committee's got 7 00:00:20,160 --> 00:00:23,640 Speaker 2: to play is this spat continues to build down in Washington. 8 00:00:24,920 --> 00:00:27,920 Speaker 1: Bligan Morthon, Jonathan, great to be with you. As you know, 9 00:00:28,000 --> 00:00:31,400 Speaker 1: I've spoken out many times about the importance of the 10 00:00:31,400 --> 00:00:35,280 Speaker 1: independence of the FED, and so has my colleague across 11 00:00:35,320 --> 00:00:38,440 Speaker 1: the capital, Tim Scott, the chairman of the Senate Banking Committee. 12 00:00:38,760 --> 00:00:41,720 Speaker 1: But because we fully support FED independence doesn't mean the 13 00:00:41,760 --> 00:00:45,960 Speaker 1: Fed's immune from criticism. And every president in my adult 14 00:00:46,000 --> 00:00:50,479 Speaker 1: life has been very vocal about criticizing the FED at 15 00:00:50,520 --> 00:00:55,280 Speaker 1: one time for another. So I don't think FED independence 16 00:00:55,360 --> 00:00:56,200 Speaker 1: is in question. 17 00:00:56,800 --> 00:00:59,280 Speaker 3: When it comes to what could actually happen in terms 18 00:00:59,320 --> 00:01:03,080 Speaker 3: of financial stability. We have FED Governor Lisa Cook's lawyer 19 00:01:03,200 --> 00:01:06,680 Speaker 3: saying that the President was unlawful and removing Governor Cook 20 00:01:07,040 --> 00:01:10,600 Speaker 3: and said it's vague allegations would endanger the stability of 21 00:01:10,600 --> 00:01:13,640 Speaker 3: our financial system and undermine the rule of law. Do 22 00:01:13,680 --> 00:01:15,319 Speaker 3: you agree with that assessment? 23 00:01:17,000 --> 00:01:20,120 Speaker 1: Well, I think there's some hyperbole in there. Lisa Cook 24 00:01:20,160 --> 00:01:24,920 Speaker 1: has been accused of effectively mortgage fraud. Those are significant 25 00:01:24,959 --> 00:01:30,559 Speaker 1: allocations for someone, allegations, for someone who is a financial regulator, 26 00:01:31,160 --> 00:01:33,600 Speaker 1: But I think they need to be adjudicated. I mean, 27 00:01:33,640 --> 00:01:36,080 Speaker 1: she needs her due process, her day in court to 28 00:01:36,760 --> 00:01:39,520 Speaker 1: prove that in fact that's not the case, and I 29 00:01:39,560 --> 00:01:42,640 Speaker 1: think that's underway right now. And that's again something I've 30 00:01:42,680 --> 00:01:44,480 Speaker 1: said in recent days. 31 00:01:44,880 --> 00:01:46,840 Speaker 3: Do you think the President should have waited for the 32 00:01:46,840 --> 00:01:49,160 Speaker 3: courts to play out in terms of this investigation, for 33 00:01:49,720 --> 00:01:54,000 Speaker 3: these allegations to actually become charges and a conviction, to 34 00:01:54,200 --> 00:01:56,520 Speaker 3: then take up this idea to fire her for cause. 35 00:01:57,760 --> 00:02:00,320 Speaker 1: Look, the president's entitled to his own opinion. He has 36 00:02:00,320 --> 00:02:03,080 Speaker 1: access to the facts that probably I don't, so he's 37 00:02:03,120 --> 00:02:06,800 Speaker 1: made his decision about it. But by judgment is that's 38 00:02:06,840 --> 00:02:10,960 Speaker 1: a serious allegation, and if true, it is certainly potentially 39 00:02:10,960 --> 00:02:16,240 Speaker 1: a disqualifying allegation and charge for someone who's involved, very 40 00:02:16,320 --> 00:02:18,960 Speaker 1: much intimately involved in the federal regulatory process. 41 00:02:19,160 --> 00:02:20,720 Speaker 3: Taking a step back, though, do you agree with the 42 00:02:20,720 --> 00:02:24,040 Speaker 3: Treasury Secretary on resetting the Fed's mission. 43 00:02:25,720 --> 00:02:27,639 Speaker 1: Well, you know, I believe that for a long time. 44 00:02:27,680 --> 00:02:29,799 Speaker 1: I believe the FED should have a single mandate, which 45 00:02:29,840 --> 00:02:33,680 Speaker 1: is price stability. The biggest, most punishing tax on the 46 00:02:33,720 --> 00:02:38,320 Speaker 1: American people, our citizens, is inflation, and inflation's caused by 47 00:02:38,400 --> 00:02:41,440 Speaker 1: too much money chasing too few goods. And we've had 48 00:02:41,639 --> 00:02:45,520 Speaker 1: a dramatic example of that FED policy during the pandemic 49 00:02:45,560 --> 00:02:49,679 Speaker 1: and the Biden administration's fiscal policy in combination very punishing 50 00:02:49,760 --> 00:02:52,600 Speaker 1: forty year highs in inflation. So I believe we need 51 00:02:52,639 --> 00:02:55,480 Speaker 1: fewer mandates, and I think we need that monetary policy 52 00:02:55,520 --> 00:03:00,440 Speaker 1: focused on price stability. And again that's why set up 53 00:03:00,440 --> 00:03:03,080 Speaker 1: a task force in this Congress to review the Fed's 54 00:03:03,160 --> 00:03:06,720 Speaker 1: monetary policy since two thousand and eight, review the Fed's 55 00:03:07,040 --> 00:03:10,799 Speaker 1: role and of financial regulation and supervision, and to make 56 00:03:10,800 --> 00:03:12,799 Speaker 1: sure that we're also taking steps to make sure our 57 00:03:12,840 --> 00:03:16,399 Speaker 1: treasury security market is resilient. All this work is led 58 00:03:16,440 --> 00:03:20,440 Speaker 1: by Frank Lucas of Oklahoma, and we're deep in that process. 59 00:03:20,480 --> 00:03:22,480 Speaker 1: So I think taking a strong look at the Fed's 60 00:03:22,520 --> 00:03:25,600 Speaker 1: monetary policy and their government it's an important factor. And 61 00:03:25,600 --> 00:03:27,400 Speaker 1: I agree with the Treasury Secretary on that. 62 00:03:27,560 --> 00:03:30,399 Speaker 4: Well, inflation has not been below two percent for more 63 00:03:30,440 --> 00:03:32,720 Speaker 4: than four years at this point, and we're still talking 64 00:03:32,720 --> 00:03:35,680 Speaker 4: about fifty basis point rate cuts, maybe seventy five basis 65 00:03:35,680 --> 00:03:37,680 Speaker 4: points of rate cuts this year. Do you think that 66 00:03:37,680 --> 00:03:40,680 Speaker 4: that's premature, if this should be a single mandate federal 67 00:03:40,680 --> 00:03:43,280 Speaker 4: reserve that looks solely on inflation. 68 00:03:44,640 --> 00:03:46,600 Speaker 1: Well, I think this is the tough decision they have 69 00:03:46,760 --> 00:03:49,320 Speaker 1: coming up. And we've seen a softness in the economy 70 00:03:49,760 --> 00:03:53,360 Speaker 1: during the whole year in terms of consumer's ability to 71 00:03:53,480 --> 00:03:57,000 Speaker 1: purchase the jobs reports that we've gotten. This is why 72 00:03:57,320 --> 00:03:59,840 Speaker 1: the FED Chairman, I think consistently has said, let's look 73 00:03:59,840 --> 00:04:03,680 Speaker 1: at the data, look at our data assessment and the 74 00:04:03,720 --> 00:04:07,400 Speaker 1: forecast associated with it, and also make our own judgment 75 00:04:07,440 --> 00:04:10,840 Speaker 1: about whether we're at the neutral rate for pricing, because 76 00:04:10,840 --> 00:04:13,240 Speaker 1: we don't want to see the economy stall out and 77 00:04:13,280 --> 00:04:17,480 Speaker 1: then go into stagflation, particularly when you're right about inflation 78 00:04:17,640 --> 00:04:20,000 Speaker 1: getting close to two but not below two and not 79 00:04:20,240 --> 00:04:23,919 Speaker 1: right at two. But when you look at inflation expectations, 80 00:04:23,920 --> 00:04:26,279 Speaker 1: they seem to be more closely anchored it to and 81 00:04:26,320 --> 00:04:29,520 Speaker 1: that should give the Fed some confidence as they entertain 82 00:04:29,600 --> 00:04:31,679 Speaker 1: their decision in the next few days. 83 00:04:31,800 --> 00:04:33,880 Speaker 3: Cheer Hill. I know you and your colleagues almost just 84 00:04:33,960 --> 00:04:37,200 Speaker 3: recently got back from summer recess. But October first is 85 00:04:37,200 --> 00:04:40,560 Speaker 3: fast approaching, and the Trump administration is weighing and pushing 86 00:04:40,560 --> 00:04:43,360 Speaker 3: for this idea for a stopgap funding measure to keep 87 00:04:43,400 --> 00:04:46,800 Speaker 3: the government open through January thirty first. Would you be 88 00:04:46,880 --> 00:04:47,599 Speaker 3: on board with that? 89 00:04:49,279 --> 00:04:52,359 Speaker 1: But we're talking about it among ourselves and obviously with 90 00:04:52,520 --> 00:04:57,560 Speaker 1: our friends in the Senate. We've each passed three appropriations 91 00:04:57,640 --> 00:04:59,400 Speaker 1: bills in the Senate. In the House, I think it 92 00:04:59,400 --> 00:05:01,679 Speaker 1: would be great to go to conference on those bills 93 00:05:02,320 --> 00:05:05,720 Speaker 1: and then pursue get those enacted into law, and then 94 00:05:05,760 --> 00:05:09,839 Speaker 1: pursue a CR that's a shorter term. CR would be 95 00:05:09,880 --> 00:05:13,920 Speaker 1: my advice for consideration so that we can get this 96 00:05:14,040 --> 00:05:16,920 Speaker 1: work done. We're very close. Both the House and Senate 97 00:05:17,040 --> 00:05:21,160 Speaker 1: are processing these bills. We have the Republicans in charge 98 00:05:21,160 --> 00:05:22,680 Speaker 1: of the House and the Senate in the White House. 99 00:05:22,680 --> 00:05:25,559 Speaker 1: So we ought to get together, find our top line number, 100 00:05:25,600 --> 00:05:27,000 Speaker 1: and get our work done this year. 101 00:05:27,440 --> 00:05:31,680 Speaker 2: Congressman, before you got the important stuff, Arkansas football Razorbacks 102 00:05:31,680 --> 00:05:32,599 Speaker 2: got to get done this year. 103 00:05:34,200 --> 00:05:39,440 Speaker 1: I really enjoyed watching the quarterback come and have his 104 00:05:39,560 --> 00:05:43,160 Speaker 1: great game against Arkansas State. This was the first time 105 00:05:43,200 --> 00:05:47,120 Speaker 1: in Arkansas history that Arkansas State played the University of 106 00:05:47,200 --> 00:05:50,039 Speaker 1: Arkansas in Little Rock at the famous nineteen forty nine 107 00:05:50,080 --> 00:05:53,360 Speaker 1: War Memorial Stadium. It was a fantastic day. He looks 108 00:05:53,360 --> 00:05:55,719 Speaker 1: pretty good. We play Ole Miss this weekend, so that'll 109 00:05:55,720 --> 00:05:58,640 Speaker 1: be the first SEC game and that's where the rubber hits. 110 00:05:58,520 --> 00:06:01,520 Speaker 2: The road Saturday seventh. Looking forward to it, sir, Thanks 111 00:06:01,560 --> 00:06:02,880 Speaker 2: for being here, Congressman, friendship. 112 00:06:02,880 --> 00:06:04,279 Speaker 1: You still need to come to Razorbacks. 113 00:06:04,279 --> 00:06:06,440 Speaker 2: I've got to make it happen. I know this year 114 00:06:06,440 --> 00:06:08,840 Speaker 2: it's got to happen. Thank you, sir. SEC football all 115 00:06:08,880 --> 00:06:10,880 Speaker 2: the best. Thank you appreciate it.