1 00:00:01,760 --> 00:00:06,280 Speaker 1: Now from our nation's capital. This is Bloomberg Sound on. 2 00:00:07,520 --> 00:00:10,320 Speaker 1: Our path now has to be clean energy that we 3 00:00:10,440 --> 00:00:15,560 Speaker 1: can all that we can deliver. We are mandating vaccines 4 00:00:15,960 --> 00:00:19,480 Speaker 1: for individuals whom we encounter at the southern border. Floomberg 5 00:00:19,680 --> 00:00:24,560 Speaker 1: Sound on Politics, Policy and Perspective from DC's top Names. 6 00:00:24,560 --> 00:00:26,880 Speaker 1: He's been caught in a ball face lie and he 7 00:00:27,040 --> 00:00:29,479 Speaker 1: can't spin his way out of it. No one's gonna 8 00:00:29,480 --> 00:00:34,280 Speaker 1: buy it. This is an absolutely humanitarian disaster. Americans deserve better, 9 00:00:34,320 --> 00:00:36,840 Speaker 1: but they're not going to get it. Bloomberg Sound On 10 00:00:37,040 --> 00:00:42,760 Speaker 1: with Joe Matthew on Bloomberg Radio. The global fuel shock 11 00:00:42,920 --> 00:00:46,440 Speaker 1: hits the East Coast. Welcome to the fastest hour in politics, 12 00:00:46,800 --> 00:00:49,600 Speaker 1: as we join you from the Mothership World headquarters in 13 00:00:49,680 --> 00:00:53,360 Speaker 1: New York, and news that gasoline supplies have fallen to 14 00:00:53,520 --> 00:00:56,480 Speaker 1: an eight year low on the East Coast, diesel to 15 00:00:56,520 --> 00:01:00,320 Speaker 1: the lowest since we're gonna talk about what that means 16 00:01:00,360 --> 00:01:03,760 Speaker 1: for the summer driving season and what if anything Washington 17 00:01:03,920 --> 00:01:06,200 Speaker 1: can do to help with Patrick Dahn, the head of 18 00:01:06,200 --> 00:01:09,280 Speaker 1: petroleum analysis at gas Buddy. He'll be here in a 19 00:01:09,319 --> 00:01:12,800 Speaker 1: moment later. The Secretary of Homeland Defense grilled on Capitol 20 00:01:12,840 --> 00:01:16,160 Speaker 1: Hill over the border. We'll talk about the administration's plans 21 00:01:16,400 --> 00:01:20,800 Speaker 1: to replace Title forty two with Leon Fresco, specialized in 22 00:01:20,800 --> 00:01:24,040 Speaker 1: immigration litigation at the Department of Justice and saw this coming. 23 00:01:24,440 --> 00:01:26,520 Speaker 1: Kevin McCarthy meets with the rank and file for the 24 00:01:26,560 --> 00:01:29,039 Speaker 1: first time since the tape was leaked. We'll discuss that 25 00:01:29,080 --> 00:01:33,000 Speaker 1: with the panel today Bloomberg Politics contributor Democratic analyst Genie 26 00:01:33,120 --> 00:01:36,720 Speaker 1: Chantano along with Republican strategist Doug High, former calms director 27 00:01:37,080 --> 00:01:39,319 Speaker 1: at the r n C. The headline says it all 28 00:01:39,360 --> 00:01:45,160 Speaker 1: global fuel supply shock hits US East Coast inventories hard. 29 00:01:46,319 --> 00:01:48,560 Speaker 1: And you thought gas prices were falling, well, I mean 30 00:01:48,640 --> 00:01:50,680 Speaker 1: they have been. I'm paying less than four dollars in 31 00:01:50,720 --> 00:01:53,600 Speaker 1: the nation's capital at least lately. There was up around 32 00:01:53,680 --> 00:01:57,560 Speaker 1: five at one point. But the inventory reports are out 33 00:01:57,880 --> 00:01:59,880 Speaker 1: and they do not provide comfort. As I read on 34 00:01:59,880 --> 00:02:03,680 Speaker 1: the Terminal, East Coast Distalate's diesel and heating oil have 35 00:02:03,840 --> 00:02:08,880 Speaker 1: fallen to their lowest level since six and gasoline to 36 00:02:08,919 --> 00:02:12,160 Speaker 1: the lowest level in eight years. In New England, specifically, 37 00:02:13,040 --> 00:02:16,720 Speaker 1: gas stockpiles at their lowest level since see and see 38 00:02:16,800 --> 00:02:21,560 Speaker 1: music factory was singing gonna make you sweat that would be, 39 00:02:22,520 --> 00:02:24,359 Speaker 1: would you guys have gotten that. I know Paul would 40 00:02:24,360 --> 00:02:27,360 Speaker 1: have now. Of course, gas prices have been rising throughout 41 00:02:27,400 --> 00:02:30,840 Speaker 1: the year, way before the war in Ukraine. Of course 42 00:02:30,880 --> 00:02:32,840 Speaker 1: that made it a lot worse. Though the messaging from 43 00:02:32,840 --> 00:02:35,519 Speaker 1: the White House has really been all about the war lately. 44 00:02:35,560 --> 00:02:38,639 Speaker 1: We've discussed this, right, the Putin price hike. This is 45 00:02:38,680 --> 00:02:41,760 Speaker 1: President Biden using that line earlier in the week. The 46 00:02:41,880 --> 00:02:46,200 Speaker 1: second big reason for inflation is gas prices, and as 47 00:02:46,280 --> 00:02:50,760 Speaker 1: Vladimir Putin's gas price increase, Prutin's invasion in Ukraine has 48 00:02:50,840 --> 00:02:54,160 Speaker 1: driven up gas prices and food prices all around the world. 49 00:02:55,760 --> 00:02:58,359 Speaker 1: Putin price hike, the gas Putin price increase, whatever you 50 00:02:58,400 --> 00:03:01,079 Speaker 1: want to call it, it echo us throughout the administration. 51 00:03:01,120 --> 00:03:03,240 Speaker 1: Of course, critics say, well, these prices have more to 52 00:03:03,280 --> 00:03:07,920 Speaker 1: do with America's dependence on foreign oil, with energy policy, 53 00:03:08,240 --> 00:03:10,480 Speaker 1: and of course it's been exaggerated by the war and 54 00:03:10,919 --> 00:03:15,600 Speaker 1: by a lot. These inventory reports, they'll give us a 55 00:03:15,639 --> 00:03:18,959 Speaker 1: sense of what we could be in for Memorial Day 56 00:03:19,000 --> 00:03:21,880 Speaker 1: and beyond. And we bring in Patrick to Han for 57 00:03:21,960 --> 00:03:25,280 Speaker 1: more on this. Been looking forward to the conversation with 58 00:03:25,320 --> 00:03:28,799 Speaker 1: the head of petroleum analysis at gas Body. Patrick, Welcome back. 59 00:03:28,840 --> 00:03:33,920 Speaker 1: When you consider the inventory crunch here, the likelihood that 60 00:03:34,000 --> 00:03:38,120 Speaker 1: this war continues and then the summer blends emerging. What 61 00:03:38,160 --> 00:03:42,200 Speaker 1: does that mean for gas prices this driving season. Well, 62 00:03:42,240 --> 00:03:45,800 Speaker 1: I mean certainly a very bumpy and volatile summer as 63 00:03:45,880 --> 00:03:50,320 Speaker 1: we continue to see markets digest burying headlines that seemingly 64 00:03:50,320 --> 00:03:52,960 Speaker 1: are on opposite ends of the spectrum. UM. You know, 65 00:03:53,040 --> 00:03:55,520 Speaker 1: there's a lot being said about Russia and Ukraine and 66 00:03:56,040 --> 00:04:00,560 Speaker 1: now Russia today escalating the situation by UH stifling the 67 00:04:00,600 --> 00:04:04,000 Speaker 1: flow of natural gas to Poland and Bulgaria, and of 68 00:04:04,040 --> 00:04:09,120 Speaker 1: course we have a global economy that's been rebounding UM. 69 00:04:09,160 --> 00:04:12,080 Speaker 1: In addition, China on the other side of the spectrum 70 00:04:12,080 --> 00:04:17,000 Speaker 1: with COVID, which could push oil prices lower because of 71 00:04:16,600 --> 00:04:20,640 Speaker 1: the responsive demand there is is Chinese authorities lockdown areas 72 00:04:20,680 --> 00:04:23,160 Speaker 1: of China, so there's a lot for the market to 73 00:04:23,279 --> 00:04:27,599 Speaker 1: digest UM coming out of COVID. UM. You know, demand 74 00:04:27,640 --> 00:04:31,599 Speaker 1: went from UH from zero hundred miles an hour very quickly, 75 00:04:31,640 --> 00:04:34,679 Speaker 1: it seems like UM and as you mentioned their leadoff, 76 00:04:34,680 --> 00:04:39,440 Speaker 1: the segment inventories are extremely tight. Why is the East 77 00:04:39,440 --> 00:04:44,240 Speaker 1: Coast such a problem. Well, we've lost nearly half a 78 00:04:44,360 --> 00:04:48,720 Speaker 1: million barrels a day in refining capacity um become by chance. 79 00:04:48,760 --> 00:04:52,279 Speaker 1: Refinery in Canada on the Maritimes was shut down just 80 00:04:52,400 --> 00:04:55,080 Speaker 1: prior or, I should say, in the midst of covid 81 00:04:55,880 --> 00:04:59,960 Speaker 1: um and the Philadelphia Energy Solutions refiner in Philadelphia, which 82 00:05:00,040 --> 00:05:02,719 Speaker 1: had a capacity of over three hundred and thirty three 83 00:05:02,720 --> 00:05:06,279 Speaker 1: thousand barols a day was uh suffered a fire back 84 00:05:06,360 --> 00:05:09,960 Speaker 1: in nineteen if memory serves so, we we've lost about 85 00:05:10,080 --> 00:05:12,960 Speaker 1: half a million barrels of refining capacity in that in 86 00:05:13,000 --> 00:05:17,320 Speaker 1: that region, and so things have gotten ex extremely tight. 87 00:05:17,440 --> 00:05:20,000 Speaker 1: So we've got a refining crunch here on the East Coast. 88 00:05:20,000 --> 00:05:22,040 Speaker 1: I won't say locally, I guess regionally. We could say 89 00:05:22,040 --> 00:05:24,159 Speaker 1: it's even worse in New England from what I am 90 00:05:24,200 --> 00:05:27,840 Speaker 1: reading here in the reporting from Bloomberg News at the 91 00:05:27,880 --> 00:05:30,680 Speaker 1: supply crunch with the war, and we've got some serious 92 00:05:30,720 --> 00:05:34,520 Speaker 1: issues here, Patrick, I guess the the one. It's interesting 93 00:05:34,520 --> 00:05:37,200 Speaker 1: how this works, right, the demand from China for years 94 00:05:37,320 --> 00:05:41,240 Speaker 1: was pushing prices higher. If they locked down even further 95 00:05:41,760 --> 00:05:44,159 Speaker 1: because of covid in China, is that the one hope 96 00:05:44,200 --> 00:05:47,200 Speaker 1: we have. As awful as that sounds, boy, it does 97 00:05:47,279 --> 00:05:50,520 Speaker 1: sound awful. I mean that that certainly would offer arrest. 98 00:05:50,640 --> 00:05:55,080 Speaker 1: That to global demand is if if China continues to 99 00:05:55,320 --> 00:05:59,120 Speaker 1: you know, have portions of major cities Shanghai, Beijing lockdown, 100 00:05:59,200 --> 00:06:02,200 Speaker 1: that would limit their insumption. And right now we're we're 101 00:06:02,279 --> 00:06:06,640 Speaker 1: virtually helpless on supply between sanctions on Russia and Russia's 102 00:06:06,640 --> 00:06:09,480 Speaker 1: war in Ukraine and Americans are that are getting out 103 00:06:09,480 --> 00:06:12,800 Speaker 1: and about. Um, there's really no way to curb supply. 104 00:06:12,839 --> 00:06:17,159 Speaker 1: Americans are are doing so slightly with higher prices, but 105 00:06:17,200 --> 00:06:21,400 Speaker 1: then politicians offer lower prices through lower gas taxes and 106 00:06:21,560 --> 00:06:24,360 Speaker 1: soften that blow. So I think it's gonna be harder 107 00:06:24,360 --> 00:06:28,080 Speaker 1: to adjust the demand side of the equation. Um, it's 108 00:06:28,120 --> 00:06:31,359 Speaker 1: just as hard to adjust the supply side of the equation, 109 00:06:31,440 --> 00:06:33,320 Speaker 1: given the fact that, as you mentioned, you know, we 110 00:06:33,480 --> 00:06:37,400 Speaker 1: we've recovered very quickly from COVID and supply his leg behind. 111 00:06:38,720 --> 00:06:41,360 Speaker 1: How Speaker Nancy Pelosi and the majority leader of the Senate, 112 00:06:41,440 --> 00:06:45,279 Speaker 1: Chuck Schumer, had a meeting yesterday reportedly to talk about 113 00:06:45,480 --> 00:06:50,279 Speaker 1: assembling a package to get gas prices under control. Uh, 114 00:06:50,279 --> 00:06:52,080 Speaker 1: They've been in touch with the White House on this. 115 00:06:52,200 --> 00:06:54,880 Speaker 1: Apparently Chief of Staff Ron Clan, according to punch Bowl, 116 00:06:55,720 --> 00:06:59,000 Speaker 1: was part of the conversation. The idea here is to 117 00:06:59,040 --> 00:07:02,160 Speaker 1: get as much. You know, different approaches cobbled into one 118 00:07:02,440 --> 00:07:04,440 Speaker 1: that as we can. There's been talking about a gas 119 00:07:04,440 --> 00:07:08,680 Speaker 1: tax holiday, even payments is of vouchers to people. Patrick, 120 00:07:08,680 --> 00:07:10,720 Speaker 1: would any of this stuff make a difference this summer. 121 00:07:12,640 --> 00:07:16,000 Speaker 1: I think it's a slippery slope. Obviously, politicians you know, 122 00:07:16,080 --> 00:07:18,160 Speaker 1: have been looking for a relief. We've seen it come 123 00:07:18,320 --> 00:07:21,679 Speaker 1: at the state level. Georgia, Connecticut, Maryland all doing gas 124 00:07:21,680 --> 00:07:26,120 Speaker 1: tax holidays. The incredible risk is that that compounds the 125 00:07:26,240 --> 00:07:33,200 Speaker 1: problem by potentially incentivizing Americans two not make behavioral changes, 126 00:07:33,320 --> 00:07:35,960 Speaker 1: driving changes. I mean, part of the reason we're curious 127 00:07:35,960 --> 00:07:40,120 Speaker 1: because consumption has gone up. It's outpaced demand. Excuse me, 128 00:07:40,160 --> 00:07:43,880 Speaker 1: it's outpaced supply. And to make the problem worse, you're 129 00:07:43,880 --> 00:07:47,880 Speaker 1: going to reduce prices um especially if it's in the 130 00:07:47,920 --> 00:07:52,200 Speaker 1: midst of summer. Americans have much more ability to go 131 00:07:52,240 --> 00:07:54,160 Speaker 1: out and enjoy the summer months. I mean, if you 132 00:07:54,440 --> 00:07:56,520 Speaker 1: offer a gas tax holiday in winter, I wouldn't be 133 00:07:56,560 --> 00:07:58,840 Speaker 1: as worried as Americans going out and saying, hey, let's 134 00:07:58,880 --> 00:08:01,400 Speaker 1: just take a spun SIUs road trip. But in the summer, 135 00:08:01,480 --> 00:08:03,520 Speaker 1: the ingredients are there for them to actually do that. 136 00:08:03,680 --> 00:08:07,320 Speaker 1: So the risk is politicians lower prices and that's going 137 00:08:07,360 --> 00:08:10,040 Speaker 1: to increase the man. Genna McCarthy was talking about this 138 00:08:10,920 --> 00:08:15,440 Speaker 1: today with a conference with Bloomberg Green. They assembled a 139 00:08:15,440 --> 00:08:17,960 Speaker 1: bunch of folks to talk about climate and Gina McCarthy, 140 00:08:18,000 --> 00:08:21,200 Speaker 1: of course the White House climates are is making the 141 00:08:21,240 --> 00:08:24,000 Speaker 1: point that you know, we're not having the right conversation, 142 00:08:24,440 --> 00:08:26,400 Speaker 1: and what you said reminded me of that. Patrick. If 143 00:08:26,440 --> 00:08:29,880 Speaker 1: we're obsessed with increasing production here and lowering prices, we're 144 00:08:29,880 --> 00:08:31,760 Speaker 1: never going to get off the stuff. And she says 145 00:08:31,800 --> 00:08:34,560 Speaker 1: we need to be transitioning to renewable energy. Of course 146 00:08:34,600 --> 00:08:36,880 Speaker 1: that's her role in the administration to promote that. Here's 147 00:08:36,880 --> 00:08:40,800 Speaker 1: what Gina McCarthy said today. His belief is, and he 148 00:08:40,920 --> 00:08:44,200 Speaker 1: stated it every single time that he's talked about oil 149 00:08:44,240 --> 00:08:48,160 Speaker 1: and gas prices, is that our only way to have independence, 150 00:08:48,200 --> 00:08:52,679 Speaker 1: our only way to have security against challenges that dictators 151 00:08:52,720 --> 00:08:56,960 Speaker 1: like putin present is to actually grab that clean energy future. 152 00:08:57,320 --> 00:08:59,800 Speaker 1: That is the only way we're going to make this work. 153 00:09:00,200 --> 00:09:03,520 Speaker 1: She spoke with Bloomberg's Francie and Lackwell h The timeline 154 00:09:03,520 --> 00:09:06,400 Speaker 1: here at Patrick is is really challenging. You know, at 155 00:09:06,440 --> 00:09:08,960 Speaker 1: what point does this finally break and we turn away 156 00:09:09,040 --> 00:09:13,480 Speaker 1: from incentivizing companies or or begging companies to drill more 157 00:09:14,120 --> 00:09:19,760 Speaker 1: and start investing in renewable well. I think the challenge 158 00:09:19,800 --> 00:09:23,760 Speaker 1: is one that you know, the administration seems laser focused 159 00:09:23,800 --> 00:09:27,000 Speaker 1: on moving us away from from fossil fuels. And that's fine. 160 00:09:27,480 --> 00:09:31,280 Speaker 1: The problem is that now you're you're I mean, this 161 00:09:31,320 --> 00:09:33,920 Speaker 1: is economics that it's fine. It's supplying demand shifts from 162 00:09:33,960 --> 00:09:38,960 Speaker 1: fossil fuels. Two ingredients that going to e VS. Lithium 163 00:09:39,000 --> 00:09:44,040 Speaker 1: prices have skyrocketed, Nickel, other precious metals are skyrocketing in 164 00:09:44,120 --> 00:09:47,199 Speaker 1: price um. And I mean, I won't even go in 165 00:09:47,240 --> 00:09:50,439 Speaker 1: the background of how those minerals are our mind from 166 00:09:50,480 --> 00:09:52,760 Speaker 1: the earth right. A lot of that is is what 167 00:09:52,840 --> 00:09:55,679 Speaker 1: you don't see you see driving around an e V 168 00:09:56,080 --> 00:09:59,240 Speaker 1: that you can charge and recharge without fossil fuels. But 169 00:10:00,000 --> 00:10:02,280 Speaker 1: I think everything has pros and cons. I think the 170 00:10:02,320 --> 00:10:05,160 Speaker 1: problem with moving towards renewables is we're gonna have to 171 00:10:05,200 --> 00:10:09,559 Speaker 1: have a whole lot of renewables um, you know, wind, solar, nuclear, 172 00:10:09,640 --> 00:10:11,520 Speaker 1: We're all gonna have it. We need it now right 173 00:10:11,559 --> 00:10:14,600 Speaker 1: because we need to make this transition sooner rather than later. 174 00:10:14,640 --> 00:10:17,559 Speaker 1: But that compounds a problem by driving prices up. And 175 00:10:17,600 --> 00:10:20,560 Speaker 1: look at Tesla. I mean they've already made price increases 176 00:10:20,600 --> 00:10:23,640 Speaker 1: on evs several times this year for this exact reason. 177 00:10:24,160 --> 00:10:28,560 Speaker 1: What's the national average right now? Patrick, We are staring 178 00:10:28,600 --> 00:10:31,920 Speaker 1: in a national average in the US now for unloaded 179 00:10:31,920 --> 00:10:36,760 Speaker 1: gasoline at about four thirteen. Again we see five this summer. 180 00:10:38,720 --> 00:10:42,079 Speaker 1: You know, it's unlikely, it's I'll say it this way, 181 00:10:42,080 --> 00:10:46,520 Speaker 1: it's improbable, but it's still could happen, right, It's improbable, 182 00:10:46,679 --> 00:10:51,320 Speaker 1: not impossible. But you know, given all of the uncertainty, 183 00:10:51,400 --> 00:10:54,319 Speaker 1: I mean, COVID is still you know, uh, making its 184 00:10:54,360 --> 00:10:57,800 Speaker 1: way across countries, apparently in China the most. And on 185 00:10:57,840 --> 00:10:59,760 Speaker 1: the other side we also have the rush of Ukraine 186 00:10:59,800 --> 00:11:04,000 Speaker 1: thatch wation, which I mean escalations. There's so so much uncertainty. 187 00:11:04,040 --> 00:11:06,920 Speaker 1: Like you said, the ingredients are there to see these 188 00:11:06,960 --> 00:11:09,400 Speaker 1: things happened. Patrick to Hant, thank you come back and 189 00:11:09,400 --> 00:11:11,360 Speaker 1: see us again. I always enjoy it. The head of 190 00:11:11,360 --> 00:11:14,040 Speaker 1: petroleum analysis at gas Buddy, where you can actually find 191 00:11:14,040 --> 00:11:16,920 Speaker 1: the local average in your neighborhood. I am wondering about 192 00:11:17,080 --> 00:11:19,760 Speaker 1: New England though, like I said, gas doc piles at 193 00:11:19,760 --> 00:11:27,120 Speaker 1: their lowest level since when this was the number one 194 00:11:27,160 --> 00:11:30,480 Speaker 1: song in America. Are we really having this conversation right now? 195 00:11:30,520 --> 00:11:34,480 Speaker 1: It's true. So if you're going up to Martha's Vineyard 196 00:11:34,520 --> 00:11:36,360 Speaker 1: to Boston, de Maine, it's something to keep in mind 197 00:11:36,440 --> 00:11:40,880 Speaker 1: when you refuel into our friends at our Boston station. 198 00:11:41,040 --> 00:11:44,359 Speaker 1: We see you. We'll assemble the panel next. This is Bloomberg. 199 00:11:48,240 --> 00:11:52,040 Speaker 1: You're listening to Bloomberg you sound on with Joe Matthew 200 00:11:52,400 --> 00:11:58,120 Speaker 1: on Bloomberg Radio, joining you from Bloomberg World headquarters in 201 00:11:58,160 --> 00:12:01,120 Speaker 1: New York today with an eye on oil and gas 202 00:12:01,120 --> 00:12:05,000 Speaker 1: prices following the inventory shock we were just talking about 203 00:12:05,080 --> 00:12:08,800 Speaker 1: with Patrick Dahan. President Biden calls it the plutin price ike, 204 00:12:09,880 --> 00:12:12,120 Speaker 1: but we'll vote voters by that the rest of the 205 00:12:12,240 --> 00:12:15,640 Speaker 1: year because they were paying a lot before the war started. 206 00:12:15,679 --> 00:12:18,280 Speaker 1: Let's assemble the panel right now. Jeanie Schanzano is with us, 207 00:12:19,440 --> 00:12:22,760 Speaker 1: of course, Bloomberg Politics contributor and Democratic analyst, and joined 208 00:12:22,760 --> 00:12:26,520 Speaker 1: today by Doug Hies with US Republican strategist, former deputy 209 00:12:26,559 --> 00:12:30,080 Speaker 1: chief of staff to Eric Canter, former communications director for 210 00:12:30,120 --> 00:12:31,960 Speaker 1: the r n C. It's great to have you both 211 00:12:32,000 --> 00:12:35,040 Speaker 1: with us here. Jeannie, Uh, this is big, big trouble 212 00:12:35,240 --> 00:12:39,240 Speaker 1: if our conversation with Patrick Dahn pans out talking about 213 00:12:39,280 --> 00:12:42,600 Speaker 1: the possibility of five dollars a gallon in the summer 214 00:12:42,679 --> 00:12:45,840 Speaker 1: driving season, just as people are paying attention to primaries 215 00:12:45,880 --> 00:12:49,720 Speaker 1: and noticing signs on the lawns and thinking about local 216 00:12:49,800 --> 00:12:52,640 Speaker 1: races and who they want to vote for. Despite every 217 00:12:52,679 --> 00:12:56,839 Speaker 1: effort this administration has made, uh, these these inventories do 218 00:12:56,920 --> 00:13:01,080 Speaker 1: not project a good picture. What can Joe Biden do? 219 00:13:02,160 --> 00:13:04,920 Speaker 1: It's really tough for the Biden administration. As you mentioned, 220 00:13:04,920 --> 00:13:06,680 Speaker 1: they have tried to make the case that this is 221 00:13:06,679 --> 00:13:09,600 Speaker 1: a Putin price hike that has fallen flat, you know, 222 00:13:09,760 --> 00:13:13,080 Speaker 1: in large part because Vladimir Putin is not on the ballot, 223 00:13:13,160 --> 00:13:16,120 Speaker 1: nor will he be in November. So people don't have 224 00:13:16,160 --> 00:13:18,959 Speaker 1: an option of blaming Vladimir Putin when they go to vote. 225 00:13:18,960 --> 00:13:22,240 Speaker 1: They have the option of blaming Democrats, and that's likely 226 00:13:22,360 --> 00:13:25,000 Speaker 1: what they'll do. So, you know, as we just look 227 00:13:25,000 --> 00:13:27,640 Speaker 1: at what Russia did with Poland and and Bulgaria the 228 00:13:27,679 --> 00:13:30,360 Speaker 1: other day, imagine if they do that with Germany and 229 00:13:30,360 --> 00:13:34,320 Speaker 1: potentially Italy with Nordstream, things could get worse. I do 230 00:13:34,440 --> 00:13:36,800 Speaker 1: think there's things that they could try to do, maybe 231 00:13:36,800 --> 00:13:40,320 Speaker 1: a skinny sort of energy package, something that somebody like 232 00:13:40,400 --> 00:13:43,760 Speaker 1: Joe Mansion could get Republicans Democrats on board with But 233 00:13:43,840 --> 00:13:46,400 Speaker 1: you know, as we keep talking about, unless something like 234 00:13:46,440 --> 00:13:49,640 Speaker 1: that probably happens before Memorial Day, it's likely not going 235 00:13:49,679 --> 00:13:52,800 Speaker 1: to happen. And Democrats are probably going to keep pushing 236 00:13:52,800 --> 00:13:55,959 Speaker 1: this message to blame Putin, but it's not a winning message. Well, 237 00:13:55,960 --> 00:13:58,160 Speaker 1: it's also not going to bring prices down a lot 238 00:13:58,160 --> 00:13:59,520 Speaker 1: in the near term, is it. I mean, you can 239 00:13:59,520 --> 00:14:02,199 Speaker 1: put together other and we need an energy policy. You 240 00:14:02,240 --> 00:14:05,000 Speaker 1: put together an energy bill, great, but this is long term. 241 00:14:05,080 --> 00:14:07,920 Speaker 1: I mean, affecting prices the next couple of months genies 242 00:14:08,120 --> 00:14:11,400 Speaker 1: is close to impossible. It's close to impossible. And of course, 243 00:14:11,440 --> 00:14:14,560 Speaker 1: again presidents always get blamed for the good and the bad, 244 00:14:14,640 --> 00:14:16,840 Speaker 1: and in this case the bad and the president isn't 245 00:14:16,880 --> 00:14:19,120 Speaker 1: on the ballot, but Democrats are, and they'll get blamed 246 00:14:19,120 --> 00:14:21,640 Speaker 1: in turn. Doug, I'm glad you're here. Uh. I notice 247 00:14:22,000 --> 00:14:24,560 Speaker 1: your former colleagues at the r n C are well 248 00:14:24,640 --> 00:14:27,200 Speaker 1: aware of this and have been tweeting video of President 249 00:14:27,240 --> 00:14:30,120 Speaker 1: Biden talking about the Putin price hike. Does he need 250 00:14:30,160 --> 00:14:33,840 Speaker 1: to stop saying that now? Yeah? I think so. The 251 00:14:34,160 --> 00:14:35,880 Speaker 1: reality and this is one of the things the r 252 00:14:35,960 --> 00:14:38,960 Speaker 1: n C has has been highlighting is that inflation has 253 00:14:39,000 --> 00:14:41,600 Speaker 1: gone up every month that Joe Biden has been president. 254 00:14:41,720 --> 00:14:44,320 Speaker 1: So you know, if we're talking about putin price hikes 255 00:14:44,320 --> 00:14:49,640 Speaker 1: that started and say, you know February, well in January, December, November, 256 00:14:49,840 --> 00:14:52,360 Speaker 1: we were talking about gas prices. We were talking about 257 00:14:52,600 --> 00:14:55,280 Speaker 1: what people were paying at grocery stores, what they're paying 258 00:14:55,280 --> 00:14:58,640 Speaker 1: at restaurants, what they're playing for their rental car, used car, 259 00:14:58,720 --> 00:15:02,560 Speaker 1: new car. Uber president was holding inflation events months and 260 00:15:02,600 --> 00:15:06,880 Speaker 1: months ago, months before the wars started. It's exactly and 261 00:15:07,280 --> 00:15:10,800 Speaker 1: what we saw was before this invasion happened, when there 262 00:15:10,880 --> 00:15:14,360 Speaker 1: might be a slight dip in gas prices. Democrats wanted 263 00:15:14,400 --> 00:15:16,680 Speaker 1: to harold that, you know, gas prices were down ten 264 00:15:16,760 --> 00:15:19,680 Speaker 1: cents in two weeks. Well, okay, but a lot of 265 00:15:19,680 --> 00:15:22,120 Speaker 1: money had already been taken out of the pocketbook of 266 00:15:22,120 --> 00:15:25,760 Speaker 1: of you know, Americans throughout the country and more expensive 267 00:15:25,760 --> 00:15:28,480 Speaker 1: on everything they paid. And that happened well before this. 268 00:15:28,920 --> 00:15:31,120 Speaker 1: So what do you do from the Republican view here, 269 00:15:31,160 --> 00:15:34,760 Speaker 1: sit on your hands, Doug Way too, hopefully take the majority, 270 00:15:34,880 --> 00:15:37,360 Speaker 1: or or could there be a bipartisan effort to manage this. 271 00:15:37,400 --> 00:15:40,680 Speaker 1: I mentioned the meeting with Pelosi and Schumer. I realized 272 00:15:40,720 --> 00:15:44,240 Speaker 1: that was not a meeting with McConnell and McCarthy. But 273 00:15:44,320 --> 00:15:47,600 Speaker 1: we're talking about doing something right, a gas tax holiday. 274 00:15:47,680 --> 00:15:50,040 Speaker 1: Maybe it's vouchers, Maybe there's something in the production and 275 00:15:50,120 --> 00:15:55,560 Speaker 1: that can be done to to incentivize drillers. What's your thought. Yeah, yeah, Look, 276 00:15:55,600 --> 00:15:57,680 Speaker 1: you know we're seeing a lot of activity from governors 277 00:15:57,720 --> 00:16:01,400 Speaker 1: already who are providing local as tax holidays for you know, 278 00:16:01,480 --> 00:16:04,240 Speaker 1: sixty days or ninety days. Glenn Young can just signed 279 00:16:04,240 --> 00:16:06,720 Speaker 1: one in this week for ninety days, and uh, that's 280 00:16:06,760 --> 00:16:10,080 Speaker 1: something where Republicans could get behind. Obviously, you know they 281 00:16:10,120 --> 00:16:13,480 Speaker 1: are they are pro production, pro exploration. They'll be happy 282 00:16:13,520 --> 00:16:15,880 Speaker 1: to talk about even though it doesn't solve the current prices, 283 00:16:16,240 --> 00:16:20,160 Speaker 1: the crisis, the Keystone pipeline and things like that. But 284 00:16:20,280 --> 00:16:23,080 Speaker 1: let's be realistic. We're talking about trying to get something 285 00:16:23,120 --> 00:16:25,880 Speaker 1: done in the next four weeks on energy that doesn't 286 00:16:25,920 --> 00:16:29,520 Speaker 1: happen very quickly in Washington, d C. In any circumstances. Well, no, 287 00:16:29,680 --> 00:16:32,400 Speaker 1: it's it's highly unlikely. As we're talking about new money 288 00:16:32,440 --> 00:16:36,920 Speaker 1: for Ukraine, Title forty two and COVID Genie on your 289 00:16:36,960 --> 00:16:40,040 Speaker 1: menu of options here, what are you doing as the 290 00:16:40,080 --> 00:16:44,120 Speaker 1: Biden administration to make the priority out of those. You know, 291 00:16:44,280 --> 00:16:48,160 Speaker 1: they have to prioritize Ukraine, and they have to prioritize 292 00:16:48,200 --> 00:16:51,200 Speaker 1: any steps they can take to address inflation. Those are 293 00:16:51,240 --> 00:16:53,200 Speaker 1: the two things, and that would include, of course the 294 00:16:53,200 --> 00:16:56,080 Speaker 1: price of gas. Those are you know, Ukraine shouldn't be 295 00:16:56,120 --> 00:16:58,479 Speaker 1: as much of an uphill battle these of the Congress, 296 00:16:59,280 --> 00:17:03,200 Speaker 1: but certain dealing with inflation, their options are really limited, 297 00:17:03,240 --> 00:17:06,480 Speaker 1: as are the gas prices. So those are the two 298 00:17:06,520 --> 00:17:09,320 Speaker 1: things they have to prioritize. But the real answer is 299 00:17:09,480 --> 00:17:12,840 Speaker 1: they have to prioritize what can get passed through Congress. 300 00:17:13,080 --> 00:17:15,159 Speaker 1: And that means when Elizabeth Warren goes out on the 301 00:17:15,200 --> 00:17:18,200 Speaker 1: Sunday talk shows and talks about, you know, going big 302 00:17:18,320 --> 00:17:21,240 Speaker 1: or going home, it's simply not going to happen. It's 303 00:17:21,320 --> 00:17:23,879 Speaker 1: got to be what can be done. And I go 304 00:17:23,960 --> 00:17:27,040 Speaker 1: back to some kind of skinny package that they can 305 00:17:27,040 --> 00:17:31,280 Speaker 1: get bipartisan agreement on, like they did bipartisan infrastructure and 306 00:17:31,400 --> 00:17:34,320 Speaker 1: plow it through. Although I agree with Doug it's terribly 307 00:17:34,359 --> 00:17:36,880 Speaker 1: difficult to imagine four weeks doing something like that. Well, 308 00:17:36,880 --> 00:17:38,560 Speaker 1: I don't know, Doug, You tell me if from the 309 00:17:38,680 --> 00:17:41,600 Speaker 1: from the Republican View on Capitol Hill. Don't you say, 310 00:17:41,640 --> 00:17:43,680 Speaker 1: go ahead, make my day. I dare you to spend 311 00:17:43,680 --> 00:17:47,159 Speaker 1: more money? Well, I mean certainly they'd be happy to 312 00:17:47,200 --> 00:17:49,919 Speaker 1: see Democrats try and go big because there's a uh. 313 00:17:50,119 --> 00:17:53,800 Speaker 1: What we see is is Republicans would be very enthusiastic 314 00:17:53,840 --> 00:17:56,720 Speaker 1: to show up in November to block Democratic plans. So 315 00:17:56,800 --> 00:17:59,639 Speaker 1: the bigger they go, the bigger Republicans could go to 316 00:17:59,680 --> 00:18:01,879 Speaker 1: the polls in November. I thought you might say that 317 00:18:02,000 --> 00:18:04,440 Speaker 1: black Doug High is with us along with Genie today. 318 00:18:04,440 --> 00:18:07,080 Speaker 1: They'll be back a bit later. As our panel for 319 00:18:07,119 --> 00:18:10,800 Speaker 1: the Wednesday edition, we turned to immigration next. This is Bloomberg. 320 00:18:12,040 --> 00:18:14,840 Speaker 1: Thank you for being here, and welcome to the fastest 321 00:18:14,840 --> 00:18:17,560 Speaker 1: hour in politics. I'm Joe Matthew at World Headquarters in 322 00:18:17,600 --> 00:18:21,040 Speaker 1: New York. Reading this story about the Secretary of ma 323 00:18:21,160 --> 00:18:26,080 Speaker 1: Orcus testimony today is quite a read on the terminal. 324 00:18:26,320 --> 00:18:30,199 Speaker 1: Bloomberg Government says. Ma Orcus at the center of a 325 00:18:30,240 --> 00:18:33,600 Speaker 1: political and legal firestorm over the administration's plans to end 326 00:18:33,640 --> 00:18:36,320 Speaker 1: pandemic related restrictions at the border. We've talked about this 327 00:18:36,400 --> 00:18:40,560 Speaker 1: last two days, Title forty two. During a Householmeland Security 328 00:18:40,600 --> 00:18:45,679 Speaker 1: Committee hearing later Wednesday, Republican members called him a liar, 329 00:18:46,320 --> 00:18:51,720 Speaker 1: a disappointment and a failure and urged him to resign. 330 00:18:53,680 --> 00:18:58,119 Speaker 1: So how was your day to day, Mayorcus? Of course, 331 00:18:58,200 --> 00:19:02,240 Speaker 1: so re bounding or trying to from this title forty 332 00:19:02,320 --> 00:19:05,800 Speaker 1: two situation. Remember we have the judge way in the 333 00:19:05,840 --> 00:19:09,159 Speaker 1: other day. It actually happened during the broadcast and now 334 00:19:09,280 --> 00:19:12,600 Speaker 1: you can't take that down. This is the COVID policy 335 00:19:12,800 --> 00:19:14,800 Speaker 1: that we were using in place of going back to 336 00:19:14,800 --> 00:19:17,960 Speaker 1: the Trump administration to keep immigrants from crossing the border. 337 00:19:18,440 --> 00:19:21,400 Speaker 1: Now the idea is here. What what were you guys doing? 338 00:19:21,400 --> 00:19:23,760 Speaker 1: Were you planning something to replace it? It was supposed 339 00:19:23,760 --> 00:19:26,440 Speaker 1: to go away at the end of May, and they say, yes, 340 00:19:26,480 --> 00:19:28,760 Speaker 1: we started working on this back in September. We talked 341 00:19:28,800 --> 00:19:32,639 Speaker 1: about it yesterday, a six point plan surging resources to 342 00:19:32,680 --> 00:19:36,800 Speaker 1: the border, medical supplies, working with NGOs, greater efforts to 343 00:19:36,840 --> 00:19:39,880 Speaker 1: crack down on human smuggling. Secretary of man Orcus described 344 00:19:39,920 --> 00:19:43,000 Speaker 1: it to day before the panel. We started our planning 345 00:19:43,400 --> 00:19:46,560 Speaker 1: last September and we are leading the execution of a 346 00:19:46,600 --> 00:19:50,560 Speaker 1: whole of government strategy which stands on six pillars to 347 00:19:50,680 --> 00:19:54,159 Speaker 1: prepare for and manage the rise in non citizen encounters. 348 00:19:54,720 --> 00:19:57,560 Speaker 1: We bring the six pillars to Leon Fresco, now partner 349 00:19:57,640 --> 00:20:00,600 Speaker 1: at Holland and Night, former Deputy Assistant at Orney General 350 00:20:00,600 --> 00:20:03,800 Speaker 1: for the Office of Immigration Litigation at the Department of 351 00:20:03,840 --> 00:20:06,880 Speaker 1: Justice is Civil Division. Leon, thank you for being here. 352 00:20:06,960 --> 00:20:09,520 Speaker 1: I'm assuming that we're going to have quite a number 353 00:20:09,560 --> 00:20:11,800 Speaker 1: of turns here in the legal Department as we now 354 00:20:11,840 --> 00:20:15,200 Speaker 1: wait for a Judge uh to to make the final 355 00:20:15,280 --> 00:20:17,440 Speaker 1: ruling that we've essentially been warned about. It's going to 356 00:20:17,560 --> 00:20:19,920 Speaker 1: keep Title forty two in place. You get a sense 357 00:20:19,920 --> 00:20:22,240 Speaker 1: that this administration is prepared for it to go away 358 00:20:22,440 --> 00:20:26,520 Speaker 1: whenever that happens. Well, the thing is, at this point 359 00:20:26,720 --> 00:20:29,240 Speaker 1: it's going to go away. It's just a matter of time. 360 00:20:29,280 --> 00:20:32,320 Speaker 1: Because there's not going to be a permanent COVID Title 361 00:20:32,359 --> 00:20:35,399 Speaker 1: forty two policy. The Supreme Court at some point is 362 00:20:35,440 --> 00:20:37,480 Speaker 1: going to have to credit the fact that the pandemic 363 00:20:37,560 --> 00:20:40,800 Speaker 1: is over and so there's not a pandemic related reason 364 00:20:40,880 --> 00:20:44,600 Speaker 1: to restrict entry into the United States. So then the 365 00:20:44,720 --> 00:20:48,840 Speaker 1: question becomes what takes its place. And this is the 366 00:20:48,880 --> 00:20:54,000 Speaker 1: difficult situation in terms of facts versus rhetoric versus UH law. 367 00:20:54,560 --> 00:20:58,640 Speaker 1: And here the problem is that what Title forty two 368 00:20:58,720 --> 00:21:01,600 Speaker 1: does is it gives the aministration the ability to blanket 369 00:21:01,680 --> 00:21:05,240 Speaker 1: ban people from coming in, and when you eliminate that, 370 00:21:05,800 --> 00:21:08,240 Speaker 1: you have to go through a process that, even though 371 00:21:08,240 --> 00:21:12,280 Speaker 1: it's called expedited removal, still allows people to enter the 372 00:21:12,359 --> 00:21:16,240 Speaker 1: United States and if they can articulate a credible asylum claim, 373 00:21:16,640 --> 00:21:19,080 Speaker 1: make that claim from the United States. And so the 374 00:21:19,119 --> 00:21:22,760 Speaker 1: problem is unless you can come up with some alternative 375 00:21:23,040 --> 00:21:27,080 Speaker 1: that doesn't allow people to enter, the complaints of people 376 00:21:27,080 --> 00:21:30,040 Speaker 1: who don't want people to enter are never going to 377 00:21:30,080 --> 00:21:32,159 Speaker 1: be mollified. We'll talk to me about the plan the 378 00:21:32,160 --> 00:21:35,280 Speaker 1: administration has. Does this look well thought out? Is it 379 00:21:35,400 --> 00:21:38,080 Speaker 1: something they should have been working on long before September? 380 00:21:38,400 --> 00:21:42,359 Speaker 1: Will make it difference? Leend. So, the problem with the 381 00:21:42,400 --> 00:21:44,680 Speaker 1: plan that the administration has is that the plan that 382 00:21:44,720 --> 00:21:47,639 Speaker 1: the administration has is a very well thought out plan 383 00:21:47,960 --> 00:21:52,000 Speaker 1: to try to expedite the processing of people who enter 384 00:21:52,080 --> 00:21:55,240 Speaker 1: the United States to seek asylum. And so what that 385 00:21:55,280 --> 00:21:58,800 Speaker 1: means is they're trying to avoid the situation where you 386 00:21:58,920 --> 00:22:03,800 Speaker 1: see pictures of kids lying in detention facilities in squalid 387 00:22:03,920 --> 00:22:08,159 Speaker 1: cells with with my large blankets and trying to figure 388 00:22:08,200 --> 00:22:11,800 Speaker 1: out how you process these these people because there's backlogs 389 00:22:12,040 --> 00:22:16,000 Speaker 1: in the process. Say, so, that's what their plan is 390 00:22:16,040 --> 00:22:18,720 Speaker 1: aimed to address is how we get people through this 391 00:22:18,800 --> 00:22:21,720 Speaker 1: system as quickly as possible, so we don't have these 392 00:22:21,800 --> 00:22:25,280 Speaker 1: scenes at the mortar that are these terrible humanitarians. It 393 00:22:25,320 --> 00:22:28,960 Speaker 1: doesn't increase capacity enough to actually absorb all of these people, 394 00:22:28,960 --> 00:22:33,280 Speaker 1: doesn't leon. Well, that's the problem is one, we have 395 00:22:33,320 --> 00:22:36,120 Speaker 1: no idea how many people are gonna come. But number two, 396 00:22:36,240 --> 00:22:40,680 Speaker 1: it doesn't address what you do to prevent people from 397 00:22:40,840 --> 00:22:44,600 Speaker 1: entering the United States unless and until they actually win 398 00:22:45,000 --> 00:22:48,800 Speaker 1: their asylum claim. Which is the criticism that the Republicans have, 399 00:22:48,960 --> 00:22:51,840 Speaker 1: which is they don't want anybody entering period. But the 400 00:22:51,920 --> 00:22:55,359 Speaker 1: problem with their criticism is that Title forty two is 401 00:22:55,560 --> 00:22:59,159 Speaker 1: a public health based reason to exclude. So what the 402 00:22:59,560 --> 00:23:02,520 Speaker 1: Biden indinistration is saying is if there's not actually a 403 00:23:02,560 --> 00:23:06,280 Speaker 1: public health based reason to exclude, we have to transition 404 00:23:06,320 --> 00:23:10,160 Speaker 1: to the imperfect prior law and then try as best 405 00:23:10,160 --> 00:23:13,480 Speaker 1: as we can to meet our responsibilities under that prior law. 406 00:23:13,520 --> 00:23:16,720 Speaker 1: And that time comes leon is it family detention or 407 00:23:16,720 --> 00:23:19,520 Speaker 1: do we see kids separated again? How will the administration 408 00:23:19,560 --> 00:23:23,080 Speaker 1: handle that to avoid the photos you're describing. Well, so 409 00:23:23,200 --> 00:23:25,720 Speaker 1: that's the issue is that the administration is already saying 410 00:23:25,720 --> 00:23:29,760 Speaker 1: they're not gonna put families or unaccompanied kids in extradited removal, 411 00:23:29,800 --> 00:23:32,199 Speaker 1: which means they won't be detained. The only thing that 412 00:23:32,240 --> 00:23:35,280 Speaker 1: they're gonna have is a maybe one or two or 413 00:23:35,320 --> 00:23:39,760 Speaker 1: maybe three day window in a CDP facility where their 414 00:23:39,840 --> 00:23:42,240 Speaker 1: process to make sure nobody there is a drug dealer 415 00:23:42,640 --> 00:23:44,920 Speaker 1: or a terrorist or anything. But then they're going to 416 00:23:45,040 --> 00:23:47,919 Speaker 1: be released until their court date. And this is the 417 00:23:47,960 --> 00:23:51,080 Speaker 1: scenario that the Republicans wanted to avoid, is they didn't 418 00:23:51,119 --> 00:23:54,840 Speaker 1: want anybody being released, but that would require a statutory 419 00:23:55,000 --> 00:23:58,920 Speaker 1: change or to just keep Title forty two forever, which 420 00:23:58,960 --> 00:24:03,159 Speaker 1: is of course also legal because there isn't a permanent pandemic. God, 421 00:24:03,400 --> 00:24:05,520 Speaker 1: is this all gonna end up in court again, Leon 422 00:24:05,560 --> 00:24:09,200 Speaker 1: before there's a final determination. Yes, on both sides, they're 423 00:24:09,200 --> 00:24:12,120 Speaker 1: gonna sue the people who want Title forty two eliminated 424 00:24:12,200 --> 00:24:15,760 Speaker 1: faster and the people who want Title forty two kept forever. 425 00:24:16,320 --> 00:24:18,400 Speaker 1: And really, in the end, I think the Supreme Court 426 00:24:18,480 --> 00:24:21,680 Speaker 1: is gonna say, look, Title forty two is a CDC decision. 427 00:24:22,119 --> 00:24:26,000 Speaker 1: The CDC has lots of discretion in how they do this. 428 00:24:26,400 --> 00:24:28,560 Speaker 1: And so because they have lots of discretion and how 429 00:24:28,560 --> 00:24:30,800 Speaker 1: do they do this, we the courts are not gonna 430 00:24:30,840 --> 00:24:36,960 Speaker 1: supplans our judicial decisions for CDC Title forty two recommendations. 431 00:24:37,000 --> 00:24:39,600 Speaker 1: I'm really glad you got in here. Leon just cooked 432 00:24:39,600 --> 00:24:42,280 Speaker 1: this down in five minutes to make more sense than 433 00:24:42,320 --> 00:24:45,240 Speaker 1: just about anybody I've heard yet. That's I guess Why 434 00:24:45,320 --> 00:24:47,320 Speaker 1: is it Holland and Knight while he was staff director 435 00:24:47,400 --> 00:24:50,800 Speaker 1: for the Senate d this Yeary's Subcommittee on Immigration. Thank you, Leon, 436 00:24:51,400 --> 00:24:56,160 Speaker 1: we'll reassemble the panel next. This is Bloomberg. You're listening 437 00:24:56,240 --> 00:25:00,960 Speaker 1: to Bloomberg. You sound on with Joe Matthew on Bloomberg Radio, 438 00:25:02,720 --> 00:25:05,280 Speaker 1: the fastest hour in politics. Thanks for being with us 439 00:25:05,359 --> 00:25:08,760 Speaker 1: as we join you from the mother Ship today. It's 440 00:25:08,800 --> 00:25:10,439 Speaker 1: nice to be in New York. I even saw my 441 00:25:10,560 --> 00:25:15,040 Speaker 1: first Mr Softie truck as I emerged from the train station. 442 00:25:15,119 --> 00:25:19,119 Speaker 1: I said, yes, that beings summer is near. You know 443 00:25:19,200 --> 00:25:21,400 Speaker 1: first it's the cherry blossoms in d C. We don't 444 00:25:21,400 --> 00:25:24,280 Speaker 1: get the Mr Softy. Remember having a fantasy as a 445 00:25:24,359 --> 00:25:29,080 Speaker 1: kid someday buying a Mr Softie truck. That would be 446 00:25:29,160 --> 00:25:32,320 Speaker 1: my career and I'm still aiming for it. As we 447 00:25:32,359 --> 00:25:35,880 Speaker 1: reassemble the panel. Here, Jeanie Shechanzano is with us Democratic 448 00:25:36,640 --> 00:25:39,320 Speaker 1: analyst and of course Bloomberg Politics contributor, and joined the 449 00:25:39,359 --> 00:25:42,159 Speaker 1: day by Doug High with us for the hour, Republican strategist, 450 00:25:42,160 --> 00:25:45,119 Speaker 1: former deputy chief of staff to Eric Cantor, and former 451 00:25:45,160 --> 00:25:51,840 Speaker 1: director of Communications at the r n C. So what recording? 452 00:25:52,840 --> 00:25:55,720 Speaker 1: That's nothing? What do I see here? Nobody is concerned 453 00:25:55,760 --> 00:25:59,800 Speaker 1: about this the line to Bloomberg from a Republican member. Today, 454 00:26:00,240 --> 00:26:03,639 Speaker 1: Kevin McCarthy had his first face to face with the 455 00:26:03,720 --> 00:26:08,200 Speaker 1: rank and file since the recording surfaced of him criticizing 456 00:26:08,240 --> 00:26:12,160 Speaker 1: some colleagues considering telling Donald Trump to resign and even 457 00:26:12,200 --> 00:26:14,879 Speaker 1: more where that came from. There is more tape, you know. 458 00:26:14,960 --> 00:26:16,680 Speaker 1: I guess this is going to trickle out every day. 459 00:26:16,720 --> 00:26:18,960 Speaker 1: Here is something CNN got it from the New York Times. 460 00:26:18,960 --> 00:26:23,480 Speaker 1: This again is the Alex Burns and Jamarn's story. They've 461 00:26:23,520 --> 00:26:26,400 Speaker 1: put a book together and God, this thing doesn't even 462 00:26:26,440 --> 00:26:28,879 Speaker 1: come out for like another month, um, a couple of 463 00:26:28,880 --> 00:26:31,600 Speaker 1: weeks at least. It's already number one. So let's get 464 00:26:31,600 --> 00:26:33,359 Speaker 1: to the tape here. I want to hear from Doug 465 00:26:33,400 --> 00:26:35,320 Speaker 1: on this. We'll get to the latest recording from Kevin 466 00:26:35,400 --> 00:26:38,840 Speaker 1: McCarthy as he's talking with Steve Scalise. Right, this is 467 00:26:38,920 --> 00:26:42,919 Speaker 1: a member a leadership call talking about the membership and 468 00:26:43,080 --> 00:26:46,639 Speaker 1: naming names, including Matt Gates. They're not happy with, you know, 469 00:26:46,720 --> 00:26:49,240 Speaker 1: post January six, some of the rhetoric that was coming 470 00:26:49,240 --> 00:26:51,840 Speaker 1: out on Twitter, and McCarthy has had it. We even 471 00:26:51,840 --> 00:26:53,639 Speaker 1: had to bleep the tapes so we could play it 472 00:26:53,680 --> 00:26:56,159 Speaker 1: for you here on Bloomberg Radio. Here he is what 473 00:27:00,160 --> 00:27:03,920 Speaker 1: was specifically. I just saw that on Twitter and someone 474 00:27:04,920 --> 00:27:07,399 Speaker 1: um involved just sent it to me. So I'm calling Gage. 475 00:27:07,400 --> 00:27:10,720 Speaker 1: I'm explaining to him. I don't know how I'm gonna say, 476 00:27:10,720 --> 00:27:12,239 Speaker 1: but I'm gonna have some other people call him too. 477 00:27:12,320 --> 00:27:15,120 Speaker 1: But the nature of what if I'm getting griefing, I'm 478 00:27:15,160 --> 00:27:18,040 Speaker 1: gonna get another one from the FBI tomorrow. Uh, this 479 00:27:18,160 --> 00:27:24,440 Speaker 1: is serious. To cut this out. Yeah, that's that's that's 480 00:27:24,480 --> 00:27:27,560 Speaker 1: that's that's it. I mean, it's potentially illegal. What are 481 00:27:27,560 --> 00:27:31,600 Speaker 1: he's doing? Well, he's putting people in jeopardy and he 482 00:27:31,760 --> 00:27:34,600 Speaker 1: doesn't need to be doing this. We saw what people 483 00:27:34,600 --> 00:27:38,000 Speaker 1: would do in the Capitol. Um, you know, at least 484 00:27:38,040 --> 00:27:43,879 Speaker 1: eople came prepared rope with everything else. Very concerned. Kevin McCarthy, 485 00:27:44,600 --> 00:27:47,360 Speaker 1: The New York Times reporting this is January tenth. By 486 00:27:47,359 --> 00:27:50,200 Speaker 1: the way, this call urging other party leaders to monitor 487 00:27:50,240 --> 00:27:53,440 Speaker 1: the public statements of certain lawmakers, including Yes, Matt Gates 488 00:27:53,480 --> 00:27:57,479 Speaker 1: of Florida also Moe Brooks of Alabama. Gates actually replied, 489 00:27:57,480 --> 00:27:58,879 Speaker 1: he seems to be the one guy who's kind of 490 00:27:58,920 --> 00:28:01,080 Speaker 1: upset about all this. He were applied on Twitter after 491 00:28:01,119 --> 00:28:04,880 Speaker 1: hearing the tape, called McCarthy and Scalise the number two 492 00:28:04,920 --> 00:28:10,240 Speaker 1: House g OP leader weak men, not leaders, and apparently 493 00:28:10,280 --> 00:28:15,119 Speaker 1: demanded an apology in the caucus luncheon today. Matt Gates, 494 00:28:15,160 --> 00:28:19,440 Speaker 1: everyone else though, pretty good with it, pretty good with it. 495 00:28:19,480 --> 00:28:23,000 Speaker 1: As our friend Emily Wilkins rights Bloomberg government. House Republicans 496 00:28:23,040 --> 00:28:26,280 Speaker 1: rallied around Kevin McCarthy in their first in person meeting 497 00:28:26,800 --> 00:28:28,879 Speaker 1: get a little bit of taste of this. As a 498 00:28:28,920 --> 00:28:33,479 Speaker 1: matter of fact, Representative Salazar, Republican from Florida, Maria Salaz 499 00:28:33,520 --> 00:28:36,400 Speaker 1: are emerging from the lunch. You're talking with a reporter 500 00:28:36,480 --> 00:28:38,520 Speaker 1: out on the street about her take on the tape. 501 00:28:38,560 --> 00:28:41,120 Speaker 1: Here she is, So, did you listen to the McCarthy 502 00:28:41,200 --> 00:28:44,120 Speaker 1: audio that was released? Sure? I did, And what was 503 00:28:44,160 --> 00:28:47,200 Speaker 1: your response? As an American? My response to what that 504 00:28:47,200 --> 00:28:49,920 Speaker 1: that you was edited? You see, I know the art 505 00:28:49,960 --> 00:28:54,280 Speaker 1: of editing, So I don't I'm not sure. I'm not 506 00:28:54,400 --> 00:28:57,360 Speaker 1: sure in what context. But what I'm saying to you 507 00:28:57,480 --> 00:28:59,480 Speaker 1: is that is not a matter of trying to find 508 00:28:59,520 --> 00:29:03,080 Speaker 1: out that happened. What he said is the whole story. 509 00:29:03,480 --> 00:29:05,640 Speaker 1: Don't you guys see it? What you guys are doing. 510 00:29:07,160 --> 00:29:09,800 Speaker 1: You know, it's like the history will judge the news 511 00:29:09,960 --> 00:29:13,520 Speaker 1: organizations a hundred years from now and we'll say we're 512 00:29:13,560 --> 00:29:16,240 Speaker 1: not doing our job well. At least that won't be 513 00:29:16,320 --> 00:29:18,680 Speaker 1: here hundred years from now. And you know, I'll talk 514 00:29:18,680 --> 00:29:20,080 Speaker 1: to you about the art of editing. It is an 515 00:29:20,120 --> 00:29:22,880 Speaker 1: art when it's done right, Doug High, pull me in 516 00:29:22,920 --> 00:29:25,160 Speaker 1: off the ledge. Here. Is this what you expected that 517 00:29:25,240 --> 00:29:29,120 Speaker 1: Kevin McCarthy walks back into that Republican Caucus meeting and 518 00:29:29,160 --> 00:29:32,400 Speaker 1: gets a standing ovation, Doug, that's what happened today. Is 519 00:29:32,400 --> 00:29:35,840 Speaker 1: this already over? You know, perhaps not a standing ovation 520 00:29:35,880 --> 00:29:38,480 Speaker 1: I would have predicted, but that this wouldn't be a 521 00:29:38,520 --> 00:29:42,000 Speaker 1: massive deal within the conference itself is not surprising at all. 522 00:29:42,040 --> 00:29:43,760 Speaker 1: And I'd say a couple of reasons for that. One, 523 00:29:44,200 --> 00:29:46,560 Speaker 1: Republicans want to be focused on the mid terms and 524 00:29:46,600 --> 00:29:50,240 Speaker 1: talking about those issues that are most resonating with voters. 525 00:29:50,240 --> 00:29:52,720 Speaker 1: On mid terms, inflation, as we were talking about earlier, 526 00:29:53,080 --> 00:29:56,680 Speaker 1: rising crime, for instance, anything that is a distraction from that, 527 00:29:57,120 --> 00:29:59,280 Speaker 1: they don't want to talk about, and they'll find whatever 528 00:29:59,320 --> 00:30:02,200 Speaker 1: way they will talk about one hundred years from today 529 00:30:02,240 --> 00:30:05,120 Speaker 1: because they don't want to talk about that is one reason. 530 00:30:05,320 --> 00:30:08,360 Speaker 1: The other is, let's face it, what members have kind 531 00:30:08,360 --> 00:30:11,520 Speaker 1: of come up when when in these conversations, it's been 532 00:30:11,920 --> 00:30:15,840 Speaker 1: members like Matt Gates and Marjorie Taylor Green that has 533 00:30:16,000 --> 00:30:18,960 Speaker 1: terror firm or for House Republican leadership to be critical of. 534 00:30:19,240 --> 00:30:21,400 Speaker 1: It's not like he was making these comments about a 535 00:30:21,480 --> 00:30:24,880 Speaker 1: Patrick mckenry or Gus Bill Irakus or somebody like that. 536 00:30:25,000 --> 00:30:27,640 Speaker 1: It's a very different conversation. He was making comments about 537 00:30:27,680 --> 00:30:30,440 Speaker 1: Donald Trump the other day, though apparently Trump was fine 538 00:30:30,480 --> 00:30:32,160 Speaker 1: with it, at least he is for now. Doug, were 539 00:30:32,160 --> 00:30:35,719 Speaker 1: you offended by anything that you heard? No, I agreed 540 00:30:35,760 --> 00:30:37,400 Speaker 1: with everything that he said. You know, I would like 541 00:30:37,440 --> 00:30:40,200 Speaker 1: to see more consistency there, obviously, But this is the 542 00:30:40,200 --> 00:30:43,920 Speaker 1: political reality of where Republicans not only find themselves but 543 00:30:44,040 --> 00:30:47,000 Speaker 1: have put themselves. You know, as we know, whether it's 544 00:30:47,040 --> 00:30:50,200 Speaker 1: an endorsement or anything else, Republicans feel the need to 545 00:30:50,200 --> 00:30:53,360 Speaker 1: be beholden to Trump. And certainly, if you want to 546 00:30:53,360 --> 00:30:55,800 Speaker 1: be the next Speaker of the House, assuming Republicans take 547 00:30:55,840 --> 00:30:58,600 Speaker 1: it over, having Donald Trump on your side instead of 548 00:30:58,640 --> 00:31:00,800 Speaker 1: against you is the fact this way to get there. 549 00:31:00,920 --> 00:31:02,600 Speaker 1: Of course, there was really I don't think there was 550 00:31:02,640 --> 00:31:05,160 Speaker 1: any editing in that tape, Genie. I mean maybe they 551 00:31:05,200 --> 00:31:07,120 Speaker 1: had to take a portion of it, obviously, but nothing 552 00:31:07,200 --> 00:31:11,080 Speaker 1: was cut up there, and he didn't deny any of 553 00:31:11,120 --> 00:31:14,680 Speaker 1: those comments. So I thought the Salazar take was interesting. 554 00:31:14,720 --> 00:31:18,040 Speaker 1: But my gosh, this is Capitol Hill. There's no there's 555 00:31:18,080 --> 00:31:20,080 Speaker 1: no young guns out there who want to take out 556 00:31:20,160 --> 00:31:23,160 Speaker 1: Kevin McCarthy and run for speaker, Genie. And and that's 557 00:31:23,200 --> 00:31:25,800 Speaker 1: a great point. No, who would want to be speaker 558 00:31:25,920 --> 00:31:28,920 Speaker 1: at this point? You know, there is nobody in waiting 559 00:31:29,000 --> 00:31:33,080 Speaker 1: for this job really at this point. And yeah, it is. 560 00:31:33,160 --> 00:31:37,360 Speaker 1: And you know, Salazar's comments echoed what Marjorie Tyler Greene said. 561 00:31:37,440 --> 00:31:40,640 Speaker 1: She's talking about the media are trying to divide us, 562 00:31:40,680 --> 00:31:43,320 Speaker 1: so they have put this in the context of this, 563 00:31:43,400 --> 00:31:47,080 Speaker 1: you know, Trumpian fake news media. Let's face it, McCarthy 564 00:31:47,120 --> 00:31:49,200 Speaker 1: has raised more money I think now that any other 565 00:31:49,280 --> 00:31:52,920 Speaker 1: GOP leader for his members for reelection. He is the 566 00:31:53,000 --> 00:31:55,520 Speaker 1: only one who is in the offing to be speaker. 567 00:31:55,840 --> 00:31:58,760 Speaker 1: He will probably be elected speaker if they take the House. 568 00:31:59,160 --> 00:32:01,960 Speaker 1: My question is is he going to be a weekend speaker? 569 00:32:02,240 --> 00:32:04,440 Speaker 1: And I would also say that you know what they 570 00:32:04,480 --> 00:32:07,600 Speaker 1: need to be concerned about. They need to be concerned 571 00:32:07,600 --> 00:32:12,160 Speaker 1: about if people in the conservative media turn on him 572 00:32:12,240 --> 00:32:16,000 Speaker 1: and turn on him like Tucker Carlson, who has described 573 00:32:16,080 --> 00:32:19,280 Speaker 1: him as liberal and at least dephonic, that's when members 574 00:32:19,280 --> 00:32:22,680 Speaker 1: will get pushed back from Republican constituents, and then you 575 00:32:22,760 --> 00:32:26,000 Speaker 1: may see pushback. Otherwise he's going to skate into that 576 00:32:26,040 --> 00:32:28,880 Speaker 1: position and have a tough time getting anything done. Is 577 00:32:28,920 --> 00:32:31,760 Speaker 1: that crack in the party a problem for Kevin McCarthy, 578 00:32:31,920 --> 00:32:35,880 Speaker 1: Doug to Genie's point, you saw Tucker Crossing coming out 579 00:32:35,880 --> 00:32:38,080 Speaker 1: for blood. If you go on Twitter, if you look 580 00:32:38,120 --> 00:32:42,640 Speaker 1: at conservatives, not just Republicans, but conservatives who are supporting 581 00:32:42,680 --> 00:32:45,600 Speaker 1: Donald Trump, they're pretty angry at some of the stuff. 582 00:32:45,640 --> 00:32:50,080 Speaker 1: Kevin McCarthy said, Sure, But ultimately, if Donald Trump is 583 00:32:50,120 --> 00:32:55,480 Speaker 1: behind him, what conservative columnist or commentator or really member 584 00:32:55,520 --> 00:32:58,800 Speaker 1: of Congress outside of the four or five usual suspect 585 00:32:58,880 --> 00:33:02,240 Speaker 1: loudmouths really going to go against Kevin in that vote, 586 00:33:02,760 --> 00:33:05,440 Speaker 1: they're not going to. He'll win the vote within the conference. 587 00:33:05,640 --> 00:33:08,360 Speaker 1: He'll be you know again if if it's a big 588 00:33:08,400 --> 00:33:11,160 Speaker 1: majority and and Trump backs him, he'll win that vote 589 00:33:11,200 --> 00:33:13,560 Speaker 1: easily in the conference. And then we'll take it to 590 00:33:13,600 --> 00:33:16,200 Speaker 1: the floor. Well, he'll lose some votes, no doubt about it, 591 00:33:16,240 --> 00:33:20,520 Speaker 1: but ultimately should emerge victorious. And Trump he hasn't said 592 00:33:20,600 --> 00:33:25,320 Speaker 1: pept this meeting he supposedly had with McCarthy. Donald Trump 593 00:33:25,360 --> 00:33:27,400 Speaker 1: never has to weigh in on anything, but he always 594 00:33:27,480 --> 00:33:29,360 Speaker 1: weighs in on things. So we'll often just see what 595 00:33:29,400 --> 00:33:32,160 Speaker 1: he says. Doug. We haven't had a chance to talk 596 00:33:32,200 --> 00:33:34,320 Speaker 1: to you in a bit, certainly since the Elon Musk 597 00:33:34,640 --> 00:33:37,640 Speaker 1: story with Twitter. Does does Donald Trump go back on Twitter? 598 00:33:37,720 --> 00:33:40,480 Speaker 1: That would be one way to start getting real loud. 599 00:33:40,520 --> 00:33:43,880 Speaker 1: He says he's not going to, but no one believes him. Well, 600 00:33:43,920 --> 00:33:46,120 Speaker 1: clearly he knows that that would be the best place 601 00:33:46,160 --> 00:33:48,640 Speaker 1: for him, the most effective place for him. His visibility 602 00:33:48,680 --> 00:33:52,400 Speaker 1: has dropped precipitously since he was kicked off Twitter. The 603 00:33:52,480 --> 00:33:55,200 Speaker 1: challenge that we just don't know about is is there 604 00:33:55,240 --> 00:33:59,360 Speaker 1: anything with his media platform truth truth social that would 605 00:33:59,400 --> 00:34:01,840 Speaker 1: either delay or prevent him from doing so? And if 606 00:34:01,880 --> 00:34:06,200 Speaker 1: he has fiduciary or contractual obligations there that may hold 607 00:34:06,240 --> 00:34:08,759 Speaker 1: things back. You're on truth social genie, what do you think, 608 00:34:08,760 --> 00:34:11,560 Speaker 1: how's that working out for you? I'm very active, Joe, 609 00:34:11,719 --> 00:34:14,000 Speaker 1: very active on truth threshold. No I'm not. But you know, 610 00:34:14,719 --> 00:34:18,239 Speaker 1: either that's the iron he's done. He's he's truth only once. 611 00:34:18,480 --> 00:34:20,680 Speaker 1: That's right. I didn't even set it up, and I'm 612 00:34:20,719 --> 00:34:23,239 Speaker 1: doing just about as much as he is. But you know, 613 00:34:23,520 --> 00:34:26,240 Speaker 1: that would be a gift to Democrats. They are praying 614 00:34:26,280 --> 00:34:29,040 Speaker 1: that Elon Musk is able to convince Donald Trump. Has 615 00:34:29,080 --> 00:34:31,719 Speaker 1: Doug mentioned if he doesn't have an obligation to stay 616 00:34:31,719 --> 00:34:34,600 Speaker 1: on truth, you know, exclusively, they are praying for him 617 00:34:34,640 --> 00:34:37,040 Speaker 1: to get back on. The more he is out there, 618 00:34:37,080 --> 00:34:39,640 Speaker 1: the better for Democrats. That's how they feel in a 619 00:34:39,800 --> 00:34:42,680 Speaker 1: very tough year. They'd like more of him, not less. 620 00:34:42,960 --> 00:34:45,880 Speaker 1: The Air Force One story was pretty remarkable today speaking 621 00:34:45,880 --> 00:34:48,920 Speaker 1: of Donald Trump. Uh, Doug. They they're losing, you know, 622 00:34:49,120 --> 00:34:52,040 Speaker 1: hundreds of millions of dollars because of this Air Force 623 00:34:52,080 --> 00:34:54,759 Speaker 1: one contract that was part of his stump speech, and 624 00:34:54,760 --> 00:34:56,920 Speaker 1: he would brag about how he got them, you know, 625 00:34:56,960 --> 00:35:00,680 Speaker 1: to this ridiculously low number at Boeing. Uh that now 626 00:35:00,760 --> 00:35:05,000 Speaker 1: the New Boeing CEO says should never have happened. These 627 00:35:05,080 --> 00:35:07,560 Speaker 1: kind of stories don't resonate for Donald Trump though, the 628 00:35:07,560 --> 00:35:10,560 Speaker 1: way they might for for saying, Joe Biden, imagine if 629 00:35:11,520 --> 00:35:16,560 Speaker 1: overran the Air Force one contract by seven hundred million dollars. Look, 630 00:35:16,719 --> 00:35:18,640 Speaker 1: you know, but part of this is to be, you know, 631 00:35:18,719 --> 00:35:21,480 Speaker 1: somewhat skeptical or even cynical about it. This is what 632 00:35:21,560 --> 00:35:23,560 Speaker 1: has been built in for Donald Trump and has been 633 00:35:23,560 --> 00:35:26,880 Speaker 1: a real teflon shield for him. We expect Donald Trump 634 00:35:26,920 --> 00:35:29,239 Speaker 1: to make shady deals, and what do you know, he 635 00:35:29,320 --> 00:35:32,600 Speaker 1: made a shady deal. That's a heck of a way 636 00:35:32,640 --> 00:35:34,680 Speaker 1: to get reelected. Can you can you put that on 637 00:35:34,680 --> 00:35:38,399 Speaker 1: a bumper sticker, Gennie, You know Donald Trump probably could. 638 00:35:38,440 --> 00:35:40,440 Speaker 1: He did say he could kill people. What was it on? 639 00:35:41,600 --> 00:35:43,480 Speaker 1: So you know he could put that on there as well. 640 00:35:43,680 --> 00:35:46,799 Speaker 1: Take it to the printer. Great conversation, Doug, Thanks for 641 00:35:46,880 --> 00:35:49,760 Speaker 1: being here. Don't be a Doug High. Always a pleasure, 642 00:35:49,840 --> 00:35:53,080 Speaker 1: of course to spend time with our friend Genie Chanzano, 643 00:35:53,160 --> 00:35:55,760 Speaker 1: a member of the family, and I feel so close 644 00:35:55,800 --> 00:35:57,680 Speaker 1: to Genie being in New York right now. We'll do 645 00:35:57,680 --> 00:36:00,560 Speaker 1: it again tomorrow. On the fastest hour in politics, I've 646 00:36:00,640 --> 00:36:03,000 Speaker 1: Joe Matthew, this is Bloomberg