WEBVTT - US Representative French Hill of Arkansas Talks Republican Economic Priorities

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Congressman French Hill, chairman of the House Financial Committee on

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<v Speaker 2>Financial Services, joined us now for more. Congressman Hill, welcome

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<v Speaker 2>to the program. So we've got a lot to get through,

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<v Speaker 2>and I just wanted to start with the independence of

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<v Speaker 2>the Federal serve and the role that your committee's got

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<v Speaker 2>to play is this spat continues to build down in Washington.

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<v Speaker 1>Bligan Morthon, Jonathan, great to be with you. As you know,

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<v Speaker 1>I've spoken out many times about the importance of the

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<v Speaker 1>independence of the FED, and so has my colleague across

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<v Speaker 1>the capital, Tim Scott, the chairman of the Senate Banking Committee.

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<v Speaker 1>But because we fully support FED independence doesn't mean the

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<v Speaker 1>Fed's immune from criticism. And every president in my adult

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<v Speaker 1>life has been very vocal about criticizing the FED at

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<v Speaker 1>one time for another. So I don't think FED independence

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<v Speaker 1>is in question.

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<v Speaker 3>When it comes to what could actually happen in terms

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<v Speaker 3>of financial stability. We have FED Governor Lisa Cook's lawyer

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<v Speaker 3>saying that the President was unlawful and removing Governor Cook

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<v Speaker 3>and said it's vague allegations would endanger the stability of

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<v Speaker 3>our financial system and undermine the rule of law. Do

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<v Speaker 3>you agree with that assessment?

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<v Speaker 1>Well, I think there's some hyperbole in there. Lisa Cook

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<v Speaker 1>has been accused of effectively mortgage fraud. Those are significant

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<v Speaker 1>allocations for someone, allegations, for someone who is a financial regulator,

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<v Speaker 1>But I think they need to be adjudicated. I mean,

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<v Speaker 1>she needs her due process, her day in court to

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<v Speaker 1>prove that in fact that's not the case, and I

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<v Speaker 1>think that's underway right now. And that's again something I've

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<v Speaker 1>said in recent days.

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<v Speaker 3>Do you think the President should have waited for the

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<v Speaker 3>courts to play out in terms of this investigation, for

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<v Speaker 3>these allegations to actually become charges and a conviction, to

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<v Speaker 3>then take up this idea to fire her for cause.

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<v Speaker 1>Look, the president's entitled to his own opinion. He has

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<v Speaker 1>access to the facts that probably I don't, so he's

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<v Speaker 1>made his decision about it. But by judgment is that's

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<v Speaker 1>a serious allegation, and if true, it is certainly potentially

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<v Speaker 1>a disqualifying allegation and charge for someone who's involved, very

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<v Speaker 1>much intimately involved in the federal regulatory process.

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<v Speaker 3>Taking a step back, though, do you agree with the

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<v Speaker 3>Treasury Secretary on resetting the Fed's mission.

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<v Speaker 1>Well, you know, I believe that for a long time.

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<v Speaker 1>I believe the FED should have a single mandate, which

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<v Speaker 1>is price stability. The biggest, most punishing tax on the

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<v Speaker 1>American people, our citizens, is inflation, and inflation's caused by

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<v Speaker 1>too much money chasing too few goods. And we've had

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<v Speaker 1>a dramatic example of that FED policy during the pandemic

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<v Speaker 1>and the Biden administration's fiscal policy in combination very punishing

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<v Speaker 1>forty year highs in inflation. So I believe we need

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<v Speaker 1>fewer mandates, and I think we need that monetary policy

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<v Speaker 1>focused on price stability. And again that's why set up

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<v Speaker 1>a task force in this Congress to review the Fed's

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<v Speaker 1>monetary policy since two thousand and eight, review the Fed's

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<v Speaker 1>role and of financial regulation and supervision, and to make

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<v Speaker 1>sure that we're also taking steps to make sure our

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<v Speaker 1>treasury security market is resilient. All this work is led

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<v Speaker 1>by Frank Lucas of Oklahoma, and we're deep in that process.

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<v Speaker 1>So I think taking a strong look at the Fed's

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<v Speaker 1>monetary policy and their government it's an important factor. And

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<v Speaker 1>I agree with the Treasury Secretary on that.

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<v Speaker 4>Well, inflation has not been below two percent for more

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<v Speaker 4>than four years at this point, and we're still talking

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<v Speaker 4>about fifty basis point rate cuts, maybe seventy five basis

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<v Speaker 4>points of rate cuts this year. Do you think that

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<v Speaker 4>that's premature, if this should be a single mandate federal

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<v Speaker 4>reserve that looks solely on inflation.

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<v Speaker 1>Well, I think this is the tough decision they have

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<v Speaker 1>coming up. And we've seen a softness in the economy

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<v Speaker 1>during the whole year in terms of consumer's ability to

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<v Speaker 1>purchase the jobs reports that we've gotten. This is why

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<v Speaker 1>the FED Chairman, I think consistently has said, let's look

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<v Speaker 1>at the data, look at our data assessment and the

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<v Speaker 1>forecast associated with it, and also make our own judgment

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<v Speaker 1>about whether we're at the neutral rate for pricing, because

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<v Speaker 1>we don't want to see the economy stall out and

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<v Speaker 1>then go into stagflation, particularly when you're right about inflation

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<v Speaker 1>getting close to two but not below two and not

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<v Speaker 1>right at two. But when you look at inflation expectations,

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<v Speaker 1>they seem to be more closely anchored it to and

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<v Speaker 1>that should give the Fed some confidence as they entertain

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<v Speaker 1>their decision in the next few days.

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<v Speaker 3>Cheer Hill. I know you and your colleagues almost just

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<v Speaker 3>recently got back from summer recess. But October first is

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<v Speaker 3>fast approaching, and the Trump administration is weighing and pushing

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<v Speaker 3>for this idea for a stopgap funding measure to keep

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<v Speaker 3>the government open through January thirty first. Would you be

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<v Speaker 3>on board with that?

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<v Speaker 1>But we're talking about it among ourselves and obviously with

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<v Speaker 1>our friends in the Senate. We've each passed three appropriations

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<v Speaker 1>bills in the Senate. In the House, I think it

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<v Speaker 1>would be great to go to conference on those bills

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<v Speaker 1>and then pursue get those enacted into law, and then

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<v Speaker 1>pursue a CR that's a shorter term. CR would be

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<v Speaker 1>my advice for consideration so that we can get this

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<v Speaker 1>work done. We're very close. Both the House and Senate

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<v Speaker 1>are processing these bills. We have the Republicans in charge

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<v Speaker 1>of the House and the Senate in the White House.

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<v Speaker 1>So we ought to get together, find our top line number,

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<v Speaker 1>and get our work done this year.

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<v Speaker 2>Congressman, before you got the important stuff, Arkansas football Razorbacks

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<v Speaker 2>got to get done this year.

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<v Speaker 1>I really enjoyed watching the quarterback come and have his

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<v Speaker 1>great game against Arkansas State. This was the first time

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<v Speaker 1>in Arkansas history that Arkansas State played the University of

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<v Speaker 1>Arkansas in Little Rock at the famous nineteen forty nine

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<v Speaker 1>War Memorial Stadium. It was a fantastic day. He looks

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<v Speaker 1>pretty good. We play Ole Miss this weekend, so that'll

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<v Speaker 1>be the first SEC game and that's where the rubber hits.

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<v Speaker 2>The road Saturday seventh. Looking forward to it, sir, Thanks

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<v Speaker 2>for being here, Congressman, friendship.

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<v Speaker 1>You still need to come to Razorbacks.

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<v Speaker 2>I've got to make it happen. I know this year

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<v Speaker 2>it's got to happen. Thank you, sir. SEC football all

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<v Speaker 2>the best. Thank you appreciate it.