Speaker 1: Now from our nation's capital. This is Bloomberg Sound on.
Speaker 1: Our path now has to be clean energy that we
Speaker 1: can all that we can deliver. We are mandating vaccines
Speaker 1: for individuals whom we encounter at the southern border. Floomberg
Speaker 1: Sound on Politics, Policy and Perspective from DC's top Names.
Speaker 1: He's been caught in a ball face lie and he
Speaker 1: can't spin his way out of it. No one's gonna
Speaker 1: buy it. This is an absolutely humanitarian disaster. Americans deserve better,
Speaker 1: but they're not going to get it. Bloomberg Sound On
Speaker 1: with Joe Matthew on Bloomberg Radio. The global fuel shock
Speaker 1: hits the East Coast. Welcome to the fastest hour in politics,
Speaker 1: as we join you from the Mothership World headquarters in
Speaker 1: New York, and news that gasoline supplies have fallen to
Speaker 1: an eight year low on the East Coast, diesel to
Speaker 1: the lowest since we're gonna talk about what that means
Speaker 1: for the summer driving season and what if anything Washington
Speaker 1: can do to help with Patrick Dahn, the head of
Speaker 1: petroleum analysis at gas Buddy. He'll be here in a
Speaker 1: moment later. The Secretary of Homeland Defense grilled on Capitol
Speaker 1: Hill over the border. We'll talk about the administration's plans
Speaker 1: to replace Title forty two with Leon Fresco, specialized in
Speaker 1: immigration litigation at the Department of Justice and saw this coming.
Speaker 1: Kevin McCarthy meets with the rank and file for the
Speaker 1: first time since the tape was leaked. We'll discuss that
Speaker 1: with the panel today Bloomberg Politics contributor Democratic analyst Genie
Speaker 1: Chantano along with Republican strategist Doug High, former calms director
Speaker 1: at the r n C. The headline says it all
Speaker 1: global fuel supply shock hits US East Coast inventories hard.
Speaker 1: And you thought gas prices were falling, well, I mean
Speaker 1: they have been. I'm paying less than four dollars in
Speaker 1: the nation's capital at least lately. There was up around
Speaker 1: five at one point. But the inventory reports are out
Speaker 1: and they do not provide comfort. As I read on
Speaker 1: the Terminal, East Coast Distalate's diesel and heating oil have
Speaker 1: fallen to their lowest level since six and gasoline to
Speaker 1: the lowest level in eight years. In New England, specifically,
Speaker 1: gas stockpiles at their lowest level since see and see
Speaker 1: music factory was singing gonna make you sweat that would be,
Speaker 1: would you guys have gotten that. I know Paul would
Speaker 1: have now. Of course, gas prices have been rising throughout
Speaker 1: the year, way before the war in Ukraine. Of course
Speaker 1: that made it a lot worse. Though the messaging from
Speaker 1: the White House has really been all about the war lately.
Speaker 1: We've discussed this, right, the Putin price hike. This is
Speaker 1: President Biden using that line earlier in the week. The
Speaker 1: second big reason for inflation is gas prices, and as
Speaker 1: Vladimir Putin's gas price increase, Prutin's invasion in Ukraine has
Speaker 1: driven up gas prices and food prices all around the world.
Speaker 1: Putin price hike, the gas Putin price increase, whatever you
Speaker 1: want to call it, it echo us throughout the administration.
Speaker 1: Of course, critics say, well, these prices have more to
Speaker 1: do with America's dependence on foreign oil, with energy policy,
Speaker 1: and of course it's been exaggerated by the war and
Speaker 1: by a lot. These inventory reports, they'll give us a
Speaker 1: sense of what we could be in for Memorial Day
Speaker 1: and beyond. And we bring in Patrick to Han for
Speaker 1: more on this. Been looking forward to the conversation with
Speaker 1: the head of petroleum analysis at gas Body. Patrick, Welcome back.
Speaker 1: When you consider the inventory crunch here, the likelihood that
Speaker 1: this war continues and then the summer blends emerging. What
Speaker 1: does that mean for gas prices this driving season. Well,
Speaker 1: I mean certainly a very bumpy and volatile summer as
Speaker 1: we continue to see markets digest burying headlines that seemingly
Speaker 1: are on opposite ends of the spectrum. UM. You know,
Speaker 1: there's a lot being said about Russia and Ukraine and
Speaker 1: now Russia today escalating the situation by UH stifling the
Speaker 1: flow of natural gas to Poland and Bulgaria, and of
Speaker 1: course we have a global economy that's been rebounding UM.
Speaker 1: In addition, China on the other side of the spectrum
Speaker 1: with COVID, which could push oil prices lower because of
Speaker 1: the responsive demand there is is Chinese authorities lockdown areas
Speaker 1: of China, so there's a lot for the market to
Speaker 1: digest UM coming out of COVID. UM. You know, demand
Speaker 1: went from UH from zero hundred miles an hour very quickly,
Speaker 1: it seems like UM and as you mentioned their leadoff,
Speaker 1: the segment inventories are extremely tight. Why is the East
Speaker 1: Coast such a problem. Well, we've lost nearly half a
Speaker 1: million barrels a day in refining capacity um become by chance.
Speaker 1: Refinery in Canada on the Maritimes was shut down just
Speaker 1: prior or, I should say, in the midst of covid
Speaker 1: um and the Philadelphia Energy Solutions refiner in Philadelphia, which
Speaker 1: had a capacity of over three hundred and thirty three
Speaker 1: thousand barols a day was uh suffered a fire back
Speaker 1: in nineteen if memory serves so, we we've lost about
Speaker 1: half a million barrels of refining capacity in that in
Speaker 1: that region, and so things have gotten ex extremely tight.
Speaker 1: So we've got a refining crunch here on the East Coast.
Speaker 1: I won't say locally, I guess regionally. We could say
Speaker 1: it's even worse in New England from what I am
Speaker 1: reading here in the reporting from Bloomberg News at the
Speaker 1: supply crunch with the war, and we've got some serious
Speaker 1: issues here, Patrick, I guess the the one. It's interesting
Speaker 1: how this works, right, the demand from China for years
Speaker 1: was pushing prices higher. If they locked down even further
Speaker 1: because of covid in China, is that the one hope
Speaker 1: we have. As awful as that sounds, boy, it does
Speaker 1: sound awful. I mean that that certainly would offer arrest.
Speaker 1: That to global demand is if if China continues to
Speaker 1: you know, have portions of major cities Shanghai, Beijing lockdown,
Speaker 1: that would limit their insumption. And right now we're we're
Speaker 1: virtually helpless on supply between sanctions on Russia and Russia's
Speaker 1: war in Ukraine and Americans are that are getting out
Speaker 1: and about. Um, there's really no way to curb supply.
Speaker 1: Americans are are doing so slightly with higher prices, but
Speaker 1: then politicians offer lower prices through lower gas taxes and
Speaker 1: soften that blow. So I think it's gonna be harder
Speaker 1: to adjust the demand side of the equation. Um, it's
Speaker 1: just as hard to adjust the supply side of the equation,
Speaker 1: given the fact that, as you mentioned, you know, we
Speaker 1: we've recovered very quickly from COVID and supply his leg behind.
Speaker 1: How Speaker Nancy Pelosi and the majority leader of the Senate,
Speaker 1: Chuck Schumer, had a meeting yesterday reportedly to talk about
Speaker 1: assembling a package to get gas prices under control. Uh,
Speaker 1: They've been in touch with the White House on this.
Speaker 1: Apparently Chief of Staff Ron Clan, according to punch Bowl,
Speaker 1: was part of the conversation. The idea here is to
Speaker 1: get as much. You know, different approaches cobbled into one
Speaker 1: that as we can. There's been talking about a gas
Speaker 1: tax holiday, even payments is of vouchers to people. Patrick,
Speaker 1: would any of this stuff make a difference this summer.
Speaker 1: I think it's a slippery slope. Obviously, politicians you know,
Speaker 1: have been looking for a relief. We've seen it come
Speaker 1: at the state level. Georgia, Connecticut, Maryland all doing gas
Speaker 1: tax holidays. The incredible risk is that that compounds the
Speaker 1: problem by potentially incentivizing Americans two not make behavioral changes,
Speaker 1: driving changes. I mean, part of the reason we're curious
Speaker 1: because consumption has gone up. It's outpaced demand. Excuse me,
Speaker 1: it's outpaced supply. And to make the problem worse, you're
Speaker 1: going to reduce prices um especially if it's in the
Speaker 1: midst of summer. Americans have much more ability to go
Speaker 1: out and enjoy the summer months. I mean, if you
Speaker 1: offer a gas tax holiday in winter, I wouldn't be
Speaker 1: as worried as Americans going out and saying, hey, let's
Speaker 1: just take a spun SIUs road trip. But in the summer,
Speaker 1: the ingredients are there for them to actually do that.
Speaker 1: So the risk is politicians lower prices and that's going
Speaker 1: to increase the man. Genna McCarthy was talking about this
Speaker 1: today with a conference with Bloomberg Green. They assembled a
Speaker 1: bunch of folks to talk about climate and Gina McCarthy,
Speaker 1: of course the White House climates are is making the
Speaker 1: point that you know, we're not having the right conversation,
Speaker 1: and what you said reminded me of that. Patrick. If
Speaker 1: we're obsessed with increasing production here and lowering prices, we're
Speaker 1: never going to get off the stuff. And she says
Speaker 1: we need to be transitioning to renewable energy. Of course
Speaker 1: that's her role in the administration to promote that. Here's
Speaker 1: what Gina McCarthy said today. His belief is, and he
Speaker 1: stated it every single time that he's talked about oil
Speaker 1: and gas prices, is that our only way to have independence,
Speaker 1: our only way to have security against challenges that dictators
Speaker 1: like putin present is to actually grab that clean energy future.
Speaker 1: That is the only way we're going to make this work.
Speaker 1: She spoke with Bloomberg's Francie and Lackwell h The timeline
Speaker 1: here at Patrick is is really challenging. You know, at
Speaker 1: what point does this finally break and we turn away
Speaker 1: from incentivizing companies or or begging companies to drill more
Speaker 1: and start investing in renewable well. I think the challenge
Speaker 1: is one that you know, the administration seems laser focused
Speaker 1: on moving us away from from fossil fuels. And that's fine.
Speaker 1: The problem is that now you're you're I mean, this
Speaker 1: is economics that it's fine. It's supplying demand shifts from
Speaker 1: fossil fuels. Two ingredients that going to e VS. Lithium
Speaker 1: prices have skyrocketed, Nickel, other precious metals are skyrocketing in
Speaker 1: price um. And I mean, I won't even go in
Speaker 1: the background of how those minerals are our mind from
Speaker 1: the earth right. A lot of that is is what
Speaker 1: you don't see you see driving around an e V
Speaker 1: that you can charge and recharge without fossil fuels. But
Speaker 1: I think everything has pros and cons. I think the
Speaker 1: problem with moving towards renewables is we're gonna have to
Speaker 1: have a whole lot of renewables um, you know, wind, solar, nuclear,
Speaker 1: We're all gonna have it. We need it now right
Speaker 1: because we need to make this transition sooner rather than later.
Speaker 1: But that compounds a problem by driving prices up. And
Speaker 1: look at Tesla. I mean they've already made price increases
Speaker 1: on evs several times this year for this exact reason.
Speaker 1: What's the national average right now? Patrick, We are staring
Speaker 1: in a national average in the US now for unloaded
Speaker 1: gasoline at about four thirteen. Again we see five this summer.
Speaker 1: You know, it's unlikely, it's I'll say it this way,
Speaker 1: it's improbable, but it's still could happen, right, It's improbable,
Speaker 1: not impossible. But you know, given all of the uncertainty,
Speaker 1: I mean, COVID is still you know, uh, making its
Speaker 1: way across countries, apparently in China the most. And on
Speaker 1: the other side we also have the rush of Ukraine
Speaker 1: thatch wation, which I mean escalations. There's so so much uncertainty.
Speaker 1: Like you said, the ingredients are there to see these
Speaker 1: things happened. Patrick to Hant, thank you come back and
Speaker 1: see us again. I always enjoy it. The head of
Speaker 1: petroleum analysis at gas Buddy, where you can actually find
Speaker 1: the local average in your neighborhood. I am wondering about
Speaker 1: New England though, like I said, gas doc piles at
Speaker 1: their lowest level since when this was the number one
Speaker 1: song in America. Are we really having this conversation right now?
Speaker 1: It's true. So if you're going up to Martha's Vineyard
Speaker 1: to Boston, de Maine, it's something to keep in mind
Speaker 1: when you refuel into our friends at our Boston station.
Speaker 1: We see you. We'll assemble the panel next. This is Bloomberg.
Speaker 1: You're listening to Bloomberg you sound on with Joe Matthew
Speaker 1: on Bloomberg Radio, joining you from Bloomberg World headquarters in
Speaker 1: New York today with an eye on oil and gas
Speaker 1: prices following the inventory shock we were just talking about
Speaker 1: with Patrick Dahan. President Biden calls it the plutin price ike,
Speaker 1: but we'll vote voters by that the rest of the
Speaker 1: year because they were paying a lot before the war started.
Speaker 1: Let's assemble the panel right now. Jeanie Schanzano is with us,
Speaker 1: of course, Bloomberg Politics contributor and Democratic analyst, and joined
Speaker 1: today by Doug Hies with US Republican strategist, former deputy
Speaker 1: chief of staff to Eric Canter, former communications director for
Speaker 1: the r n C. It's great to have you both
Speaker 1: with us here. Jeannie, Uh, this is big, big trouble
Speaker 1: if our conversation with Patrick Dahn pans out talking about
Speaker 1: the possibility of five dollars a gallon in the summer
Speaker 1: driving season, just as people are paying attention to primaries
Speaker 1: and noticing signs on the lawns and thinking about local
Speaker 1: races and who they want to vote for. Despite every
Speaker 1: effort this administration has made, uh, these these inventories do
Speaker 1: not project a good picture. What can Joe Biden do?
Speaker 1: It's really tough for the Biden administration. As you mentioned,
Speaker 1: they have tried to make the case that this is
Speaker 1: a Putin price hike that has fallen flat, you know,
Speaker 1: in large part because Vladimir Putin is not on the ballot,
Speaker 1: nor will he be in November. So people don't have
Speaker 1: an option of blaming Vladimir Putin when they go to vote.
Speaker 1: They have the option of blaming Democrats, and that's likely
Speaker 1: what they'll do. So, you know, as we just look
Speaker 1: at what Russia did with Poland and and Bulgaria the
Speaker 1: other day, imagine if they do that with Germany and
Speaker 1: potentially Italy with Nordstream, things could get worse. I do
Speaker 1: think there's things that they could try to do, maybe
Speaker 1: a skinny sort of energy package, something that somebody like
Speaker 1: Joe Mansion could get Republicans Democrats on board with But
Speaker 1: you know, as we keep talking about, unless something like
Speaker 1: that probably happens before Memorial Day, it's likely not going
Speaker 1: to happen. And Democrats are probably going to keep pushing
Speaker 1: this message to blame Putin, but it's not a winning message. Well,
Speaker 1: it's also not going to bring prices down a lot
Speaker 1: in the near term, is it. I mean, you can
Speaker 1: put together other and we need an energy policy. You
Speaker 1: put together an energy bill, great, but this is long term.
Speaker 1: I mean, affecting prices the next couple of months genies
Speaker 1: is close to impossible. It's close to impossible. And of course,
Speaker 1: again presidents always get blamed for the good and the bad,
Speaker 1: and in this case the bad and the president isn't
Speaker 1: on the ballot, but Democrats are, and they'll get blamed
Speaker 1: in turn. Doug, I'm glad you're here. Uh. I notice
Speaker 1: your former colleagues at the r n C are well
Speaker 1: aware of this and have been tweeting video of President
Speaker 1: Biden talking about the Putin price hike. Does he need
Speaker 1: to stop saying that now? Yeah? I think so. The
Speaker 1: reality and this is one of the things the r
Speaker 1: n C has has been highlighting is that inflation has
Speaker 1: gone up every month that Joe Biden has been president.
Speaker 1: So you know, if we're talking about putin price hikes
Speaker 1: that started and say, you know February, well in January, December, November,
Speaker 1: we were talking about gas prices. We were talking about
Speaker 1: what people were paying at grocery stores, what they're paying
Speaker 1: at restaurants, what they're playing for their rental car, used car,
Speaker 1: new car. Uber president was holding inflation events months and
Speaker 1: months ago, months before the wars started. It's exactly and
Speaker 1: what we saw was before this invasion happened, when there
Speaker 1: might be a slight dip in gas prices. Democrats wanted
Speaker 1: to harold that, you know, gas prices were down ten
Speaker 1: cents in two weeks. Well, okay, but a lot of
Speaker 1: money had already been taken out of the pocketbook of
Speaker 1: of you know, Americans throughout the country and more expensive
Speaker 1: on everything they paid. And that happened well before this.
Speaker 1: So what do you do from the Republican view here,
Speaker 1: sit on your hands, Doug Way too, hopefully take the majority,
Speaker 1: or or could there be a bipartisan effort to manage this.
Speaker 1: I mentioned the meeting with Pelosi and Schumer. I realized
Speaker 1: that was not a meeting with McConnell and McCarthy. But
Speaker 1: we're talking about doing something right, a gas tax holiday.
Speaker 1: Maybe it's vouchers, Maybe there's something in the production and
Speaker 1: that can be done to to incentivize drillers. What's your thought. Yeah, yeah, Look,
Speaker 1: you know we're seeing a lot of activity from governors
Speaker 1: already who are providing local as tax holidays for you know,
Speaker 1: sixty days or ninety days. Glenn Young can just signed
Speaker 1: one in this week for ninety days, and uh, that's
Speaker 1: something where Republicans could get behind. Obviously, you know they
Speaker 1: are they are pro production, pro exploration. They'll be happy
Speaker 1: to talk about even though it doesn't solve the current prices,
Speaker 1: the crisis, the Keystone pipeline and things like that. But
Speaker 1: let's be realistic. We're talking about trying to get something
Speaker 1: done in the next four weeks on energy that doesn't
Speaker 1: happen very quickly in Washington, d C. In any circumstances. Well, no,
Speaker 1: it's it's highly unlikely. As we're talking about new money
Speaker 1: for Ukraine, Title forty two and COVID Genie on your
Speaker 1: menu of options here, what are you doing as the
Speaker 1: Biden administration to make the priority out of those. You know,
Speaker 1: they have to prioritize Ukraine, and they have to prioritize
Speaker 1: any steps they can take to address inflation. Those are
Speaker 1: the two things, and that would include, of course the
Speaker 1: price of gas. Those are you know, Ukraine shouldn't be
Speaker 1: as much of an uphill battle these of the Congress,
Speaker 1: but certain dealing with inflation, their options are really limited,
Speaker 1: as are the gas prices. So those are the two
Speaker 1: things they have to prioritize. But the real answer is
Speaker 1: they have to prioritize what can get passed through Congress.
Speaker 1: And that means when Elizabeth Warren goes out on the
Speaker 1: Sunday talk shows and talks about, you know, going big
Speaker 1: or going home, it's simply not going to happen. It's
Speaker 1: got to be what can be done. And I go
Speaker 1: back to some kind of skinny package that they can
Speaker 1: get bipartisan agreement on, like they did bipartisan infrastructure and
Speaker 1: plow it through. Although I agree with Doug it's terribly
Speaker 1: difficult to imagine four weeks doing something like that. Well,
Speaker 1: I don't know, Doug, You tell me if from the
Speaker 1: from the Republican View on Capitol Hill. Don't you say,
Speaker 1: go ahead, make my day. I dare you to spend
Speaker 1: more money? Well, I mean certainly they'd be happy to
Speaker 1: see Democrats try and go big because there's a uh.
Speaker 1: What we see is is Republicans would be very enthusiastic
Speaker 1: to show up in November to block Democratic plans. So
Speaker 1: the bigger they go, the bigger Republicans could go to
Speaker 1: the polls in November. I thought you might say that
Speaker 1: black Doug High is with us along with Genie today.
Speaker 1: They'll be back a bit later. As our panel for
Speaker 1: the Wednesday edition, we turned to immigration next. This is Bloomberg.
Speaker 1: Thank you for being here, and welcome to the fastest
Speaker 1: hour in politics. I'm Joe Matthew at World Headquarters in
Speaker 1: New York. Reading this story about the Secretary of ma
Speaker 1: Orcus testimony today is quite a read on the terminal.
Speaker 1: Bloomberg Government says. Ma Orcus at the center of a
Speaker 1: political and legal firestorm over the administration's plans to end
Speaker 1: pandemic related restrictions at the border. We've talked about this
Speaker 1: last two days, Title forty two. During a Householmeland Security
Speaker 1: Committee hearing later Wednesday, Republican members called him a liar,
Speaker 1: a disappointment and a failure and urged him to resign.
Speaker 1: So how was your day to day, Mayorcus? Of course,
Speaker 1: so re bounding or trying to from this title forty
Speaker 1: two situation. Remember we have the judge way in the
Speaker 1: other day. It actually happened during the broadcast and now
Speaker 1: you can't take that down. This is the COVID policy
Speaker 1: that we were using in place of going back to
Speaker 1: the Trump administration to keep immigrants from crossing the border.
Speaker 1: Now the idea is here. What what were you guys doing?
Speaker 1: Were you planning something to replace it? It was supposed
Speaker 1: to go away at the end of May, and they say, yes,
Speaker 1: we started working on this back in September. We talked
Speaker 1: about it yesterday, a six point plan surging resources to
Speaker 1: the border, medical supplies, working with NGOs, greater efforts to
Speaker 1: crack down on human smuggling. Secretary of man Orcus described
Speaker 1: it to day before the panel. We started our planning
Speaker 1: last September and we are leading the execution of a
Speaker 1: whole of government strategy which stands on six pillars to
Speaker 1: prepare for and manage the rise in non citizen encounters.
Speaker 1: We bring the six pillars to Leon Fresco, now partner
Speaker 1: at Holland and Night, former Deputy Assistant at Orney General
Speaker 1: for the Office of Immigration Litigation at the Department of
Speaker 1: Justice is Civil Division. Leon, thank you for being here.
Speaker 1: I'm assuming that we're going to have quite a number
Speaker 1: of turns here in the legal Department as we now
Speaker 1: wait for a Judge uh to to make the final
Speaker 1: ruling that we've essentially been warned about. It's going to
Speaker 1: keep Title forty two in place. You get a sense
Speaker 1: that this administration is prepared for it to go away
Speaker 1: whenever that happens. Well, the thing is, at this point
Speaker 1: it's going to go away. It's just a matter of time.
Speaker 1: Because there's not going to be a permanent COVID Title
Speaker 1: forty two policy. The Supreme Court at some point is
Speaker 1: going to have to credit the fact that the pandemic
Speaker 1: is over and so there's not a pandemic related reason
Speaker 1: to restrict entry into the United States. So then the
Speaker 1: question becomes what takes its place. And this is the
Speaker 1: difficult situation in terms of facts versus rhetoric versus UH law.
Speaker 1: And here the problem is that what Title forty two
Speaker 1: does is it gives the aministration the ability to blanket
Speaker 1: ban people from coming in, and when you eliminate that,
Speaker 1: you have to go through a process that, even though
Speaker 1: it's called expedited removal, still allows people to enter the
Speaker 1: United States and if they can articulate a credible asylum claim,
Speaker 1: make that claim from the United States. And so the
Speaker 1: problem is unless you can come up with some alternative
Speaker 1: that doesn't allow people to enter, the complaints of people
Speaker 1: who don't want people to enter are never going to
Speaker 1: be mollified. We'll talk to me about the plan the
Speaker 1: administration has. Does this look well thought out? Is it
Speaker 1: something they should have been working on long before September?
Speaker 1: Will make it difference? Leend. So, the problem with the
Speaker 1: plan that the administration has is that the plan that
Speaker 1: the administration has is a very well thought out plan
Speaker 1: to try to expedite the processing of people who enter
Speaker 1: the United States to seek asylum. And so what that
Speaker 1: means is they're trying to avoid the situation where you
Speaker 1: see pictures of kids lying in detention facilities in squalid
Speaker 1: cells with with my large blankets and trying to figure
Speaker 1: out how you process these these people because there's backlogs
Speaker 1: in the process. Say, so, that's what their plan is
Speaker 1: aimed to address is how we get people through this
Speaker 1: system as quickly as possible, so we don't have these
Speaker 1: scenes at the mortar that are these terrible humanitarians. It
Speaker 1: doesn't increase capacity enough to actually absorb all of these people,
Speaker 1: doesn't leon. Well, that's the problem is one, we have
Speaker 1: no idea how many people are gonna come. But number two,
Speaker 1: it doesn't address what you do to prevent people from
Speaker 1: entering the United States unless and until they actually win
Speaker 1: their asylum claim. Which is the criticism that the Republicans have,
Speaker 1: which is they don't want anybody entering period. But the
Speaker 1: problem with their criticism is that Title forty two is
Speaker 1: a public health based reason to exclude. So what the
Speaker 1: Biden indinistration is saying is if there's not actually a
Speaker 1: public health based reason to exclude, we have to transition
Speaker 1: to the imperfect prior law and then try as best
Speaker 1: as we can to meet our responsibilities under that prior law.
Speaker 1: And that time comes leon is it family detention or
Speaker 1: do we see kids separated again? How will the administration
Speaker 1: handle that to avoid the photos you're describing. Well, so
Speaker 1: that's the issue is that the administration is already saying
Speaker 1: they're not gonna put families or unaccompanied kids in extradited removal,
Speaker 1: which means they won't be detained. The only thing that
Speaker 1: they're gonna have is a maybe one or two or
Speaker 1: maybe three day window in a CDP facility where their
Speaker 1: process to make sure nobody there is a drug dealer
Speaker 1: or a terrorist or anything. But then they're going to
Speaker 1: be released until their court date. And this is the
Speaker 1: scenario that the Republicans wanted to avoid, is they didn't
Speaker 1: want anybody being released, but that would require a statutory
Speaker 1: change or to just keep Title forty two forever, which
Speaker 1: is of course also legal because there isn't a permanent pandemic. God,
Speaker 1: is this all gonna end up in court again, Leon
Speaker 1: before there's a final determination. Yes, on both sides, they're
Speaker 1: gonna sue the people who want Title forty two eliminated
Speaker 1: faster and the people who want Title forty two kept forever.
Speaker 1: And really, in the end, I think the Supreme Court
Speaker 1: is gonna say, look, Title forty two is a CDC decision.
Speaker 1: The CDC has lots of discretion in how they do this.
Speaker 1: And so because they have lots of discretion and how
Speaker 1: do they do this, we the courts are not gonna
Speaker 1: supplans our judicial decisions for CDC Title forty two recommendations.
Speaker 1: I'm really glad you got in here. Leon just cooked
Speaker 1: this down in five minutes to make more sense than
Speaker 1: just about anybody I've heard yet. That's I guess Why
Speaker 1: is it Holland and Knight while he was staff director
Speaker 1: for the Senate d this Yeary's Subcommittee on Immigration. Thank you, Leon,
Speaker 1: we'll reassemble the panel next. This is Bloomberg. You're listening
Speaker 1: to Bloomberg. You sound on with Joe Matthew on Bloomberg Radio,
Speaker 1: the fastest hour in politics. Thanks for being with us
Speaker 1: as we join you from the mother Ship today. It's
Speaker 1: nice to be in New York. I even saw my
Speaker 1: first Mr Softie truck as I emerged from the train station.
Speaker 1: I said, yes, that beings summer is near. You know
Speaker 1: first it's the cherry blossoms in d C. We don't
Speaker 1: get the Mr Softy. Remember having a fantasy as a
Speaker 1: kid someday buying a Mr Softie truck. That would be
Speaker 1: my career and I'm still aiming for it. As we
Speaker 1: reassemble the panel. Here, Jeanie Shechanzano is with us Democratic
Speaker 1: analyst and of course Bloomberg Politics contributor, and joined the
Speaker 1: day by Doug High with us for the hour, Republican strategist,
Speaker 1: former deputy chief of staff to Eric Cantor, and former
Speaker 1: director of Communications at the r n C. So what recording?
Speaker 1: That's nothing? What do I see here? Nobody is concerned
Speaker 1: about this the line to Bloomberg from a Republican member. Today,
Speaker 1: Kevin McCarthy had his first face to face with the
Speaker 1: rank and file since the recording surfaced of him criticizing
Speaker 1: some colleagues considering telling Donald Trump to resign and even
Speaker 1: more where that came from. There is more tape, you know.
Speaker 1: I guess this is going to trickle out every day.
Speaker 1: Here is something CNN got it from the New York Times.
Speaker 1: This again is the Alex Burns and Jamarn's story. They've
Speaker 1: put a book together and God, this thing doesn't even
Speaker 1: come out for like another month, um, a couple of
Speaker 1: weeks at least. It's already number one. So let's get
Speaker 1: to the tape here. I want to hear from Doug
Speaker 1: on this. We'll get to the latest recording from Kevin
Speaker 1: McCarthy as he's talking with Steve Scalise. Right, this is
Speaker 1: a member a leadership call talking about the membership and
Speaker 1: naming names, including Matt Gates. They're not happy with, you know,
Speaker 1: post January six, some of the rhetoric that was coming
Speaker 1: out on Twitter, and McCarthy has had it. We even
Speaker 1: had to bleep the tapes so we could play it
Speaker 1: for you here on Bloomberg Radio. Here he is what
Speaker 1: was specifically. I just saw that on Twitter and someone
Speaker 1: um involved just sent it to me. So I'm calling Gage.
Speaker 1: I'm explaining to him. I don't know how I'm gonna say,
Speaker 1: but I'm gonna have some other people call him too.
Speaker 1: But the nature of what if I'm getting griefing, I'm
Speaker 1: gonna get another one from the FBI tomorrow. Uh, this
Speaker 1: is serious. To cut this out. Yeah, that's that's that's
Speaker 1: that's that's it. I mean, it's potentially illegal. What are
Speaker 1: he's doing? Well, he's putting people in jeopardy and he
Speaker 1: doesn't need to be doing this. We saw what people
Speaker 1: would do in the Capitol. Um, you know, at least
Speaker 1: eople came prepared rope with everything else. Very concerned. Kevin McCarthy,
Speaker 1: The New York Times reporting this is January tenth. By
Speaker 1: the way, this call urging other party leaders to monitor
Speaker 1: the public statements of certain lawmakers, including Yes, Matt Gates
Speaker 1: of Florida also Moe Brooks of Alabama. Gates actually replied,
Speaker 1: he seems to be the one guy who's kind of
Speaker 1: upset about all this. He were applied on Twitter after
Speaker 1: hearing the tape, called McCarthy and Scalise the number two
Speaker 1: House g OP leader weak men, not leaders, and apparently
Speaker 1: demanded an apology in the caucus luncheon today. Matt Gates,
Speaker 1: everyone else though, pretty good with it, pretty good with it.
Speaker 1: As our friend Emily Wilkins rights Bloomberg government. House Republicans
Speaker 1: rallied around Kevin McCarthy in their first in person meeting
Speaker 1: get a little bit of taste of this. As a
Speaker 1: matter of fact, Representative Salazar, Republican from Florida, Maria Salaz
Speaker 1: are emerging from the lunch. You're talking with a reporter
Speaker 1: out on the street about her take on the tape.
Speaker 1: Here she is, So, did you listen to the McCarthy
Speaker 1: audio that was released? Sure? I did, And what was
Speaker 1: your response? As an American? My response to what that
Speaker 1: that you was edited? You see, I know the art
Speaker 1: of editing, So I don't I'm not sure. I'm not
Speaker 1: sure in what context. But what I'm saying to you
Speaker 1: is that is not a matter of trying to find
Speaker 1: out that happened. What he said is the whole story.
Speaker 1: Don't you guys see it? What you guys are doing.
Speaker 1: You know, it's like the history will judge the news
Speaker 1: organizations a hundred years from now and we'll say we're
Speaker 1: not doing our job well. At least that won't be
Speaker 1: here hundred years from now. And you know, I'll talk
Speaker 1: to you about the art of editing. It is an
Speaker 1: art when it's done right, Doug High, pull me in
Speaker 1: off the ledge. Here. Is this what you expected that
Speaker 1: Kevin McCarthy walks back into that Republican Caucus meeting and
Speaker 1: gets a standing ovation, Doug, that's what happened today. Is
Speaker 1: this already over? You know, perhaps not a standing ovation
Speaker 1: I would have predicted, but that this wouldn't be a
Speaker 1: massive deal within the conference itself is not surprising at all.
Speaker 1: And I'd say a couple of reasons for that. One,
Speaker 1: Republicans want to be focused on the mid terms and
Speaker 1: talking about those issues that are most resonating with voters.
Speaker 1: On mid terms, inflation, as we were talking about earlier,
Speaker 1: rising crime, for instance, anything that is a distraction from that,
Speaker 1: they don't want to talk about, and they'll find whatever
Speaker 1: way they will talk about one hundred years from today
Speaker 1: because they don't want to talk about that is one reason.
Speaker 1: The other is, let's face it, what members have kind
Speaker 1: of come up when when in these conversations, it's been
Speaker 1: members like Matt Gates and Marjorie Taylor Green that has
Speaker 1: terror firm or for House Republican leadership to be critical of.
Speaker 1: It's not like he was making these comments about a
Speaker 1: Patrick mckenry or Gus Bill Irakus or somebody like that.
Speaker 1: It's a very different conversation. He was making comments about
Speaker 1: Donald Trump the other day, though apparently Trump was fine
Speaker 1: with it, at least he is for now. Doug, were
Speaker 1: you offended by anything that you heard? No, I agreed
Speaker 1: with everything that he said. You know, I would like
Speaker 1: to see more consistency there, obviously, But this is the
Speaker 1: political reality of where Republicans not only find themselves but
Speaker 1: have put themselves. You know, as we know, whether it's
Speaker 1: an endorsement or anything else, Republicans feel the need to
Speaker 1: be beholden to Trump. And certainly, if you want to
Speaker 1: be the next Speaker of the House, assuming Republicans take
Speaker 1: it over, having Donald Trump on your side instead of
Speaker 1: against you is the fact this way to get there.
Speaker 1: Of course, there was really I don't think there was
Speaker 1: any editing in that tape, Genie. I mean maybe they
Speaker 1: had to take a portion of it, obviously, but nothing
Speaker 1: was cut up there, and he didn't deny any of
Speaker 1: those comments. So I thought the Salazar take was interesting.
Speaker 1: But my gosh, this is Capitol Hill. There's no there's
Speaker 1: no young guns out there who want to take out
Speaker 1: Kevin McCarthy and run for speaker, Genie. And and that's
Speaker 1: a great point. No, who would want to be speaker
Speaker 1: at this point? You know, there is nobody in waiting
Speaker 1: for this job really at this point. And yeah, it is.
Speaker 1: And you know, Salazar's comments echoed what Marjorie Tyler Greene said.
Speaker 1: She's talking about the media are trying to divide us,
Speaker 1: so they have put this in the context of this,
Speaker 1: you know, Trumpian fake news media. Let's face it, McCarthy
Speaker 1: has raised more money I think now that any other
Speaker 1: GOP leader for his members for reelection. He is the
Speaker 1: only one who is in the offing to be speaker.
Speaker 1: He will probably be elected speaker if they take the House.
Speaker 1: My question is is he going to be a weekend speaker?
Speaker 1: And I would also say that you know what they
Speaker 1: need to be concerned about. They need to be concerned
Speaker 1: about if people in the conservative media turn on him
Speaker 1: and turn on him like Tucker Carlson, who has described
Speaker 1: him as liberal and at least dephonic, that's when members
Speaker 1: will get pushed back from Republican constituents, and then you
Speaker 1: may see pushback. Otherwise he's going to skate into that
Speaker 1: position and have a tough time getting anything done. Is
Speaker 1: that crack in the party a problem for Kevin McCarthy,
Speaker 1: Doug to Genie's point, you saw Tucker Crossing coming out
Speaker 1: for blood. If you go on Twitter, if you look
Speaker 1: at conservatives, not just Republicans, but conservatives who are supporting
Speaker 1: Donald Trump, they're pretty angry at some of the stuff.
Speaker 1: Kevin McCarthy said, Sure, But ultimately, if Donald Trump is
Speaker 1: behind him, what conservative columnist or commentator or really member
Speaker 1: of Congress outside of the four or five usual suspect
Speaker 1: loudmouths really going to go against Kevin in that vote,
Speaker 1: they're not going to. He'll win the vote within the conference.
Speaker 1: He'll be you know again if if it's a big
Speaker 1: majority and and Trump backs him, he'll win that vote
Speaker 1: easily in the conference. And then we'll take it to
Speaker 1: the floor. Well, he'll lose some votes, no doubt about it,
Speaker 1: but ultimately should emerge victorious. And Trump he hasn't said
Speaker 1: pept this meeting he supposedly had with McCarthy. Donald Trump
Speaker 1: never has to weigh in on anything, but he always
Speaker 1: weighs in on things. So we'll often just see what
Speaker 1: he says. Doug. We haven't had a chance to talk
Speaker 1: to you in a bit, certainly since the Elon Musk
Speaker 1: story with Twitter. Does does Donald Trump go back on Twitter?
Speaker 1: That would be one way to start getting real loud.
Speaker 1: He says he's not going to, but no one believes him. Well,
Speaker 1: clearly he knows that that would be the best place
Speaker 1: for him, the most effective place for him. His visibility
Speaker 1: has dropped precipitously since he was kicked off Twitter. The
Speaker 1: challenge that we just don't know about is is there
Speaker 1: anything with his media platform truth truth social that would
Speaker 1: either delay or prevent him from doing so? And if
Speaker 1: he has fiduciary or contractual obligations there that may hold
Speaker 1: things back. You're on truth social genie, what do you think,
Speaker 1: how's that working out for you? I'm very active, Joe,
Speaker 1: very active on truth threshold. No I'm not. But you know,
Speaker 1: either that's the iron he's done. He's he's truth only once.
Speaker 1: That's right. I didn't even set it up, and I'm
Speaker 1: doing just about as much as he is. But you know,
Speaker 1: that would be a gift to Democrats. They are praying
Speaker 1: that Elon Musk is able to convince Donald Trump. Has
Speaker 1: Doug mentioned if he doesn't have an obligation to stay
Speaker 1: on truth, you know, exclusively, they are praying for him
Speaker 1: to get back on. The more he is out there,
Speaker 1: the better for Democrats. That's how they feel in a
Speaker 1: very tough year. They'd like more of him, not less.
Speaker 1: The Air Force One story was pretty remarkable today speaking
Speaker 1: of Donald Trump. Uh, Doug. They they're losing, you know,
Speaker 1: hundreds of millions of dollars because of this Air Force
Speaker 1: one contract that was part of his stump speech, and
Speaker 1: he would brag about how he got them, you know,
Speaker 1: to this ridiculously low number at Boeing. Uh that now
Speaker 1: the New Boeing CEO says should never have happened. These
Speaker 1: kind of stories don't resonate for Donald Trump though, the
Speaker 1: way they might for for saying, Joe Biden, imagine if
Speaker 1: overran the Air Force one contract by seven hundred million dollars. Look,
Speaker 1: you know, but part of this is to be, you know,
Speaker 1: somewhat skeptical or even cynical about it. This is what
Speaker 1: has been built in for Donald Trump and has been
Speaker 1: a real teflon shield for him. We expect Donald Trump
Speaker 1: to make shady deals, and what do you know, he
Speaker 1: made a shady deal. That's a heck of a way
Speaker 1: to get reelected. Can you can you put that on
Speaker 1: a bumper sticker, Gennie, You know Donald Trump probably could.
Speaker 1: He did say he could kill people. What was it on?
Speaker 1: So you know he could put that on there as well.
Speaker 1: Take it to the printer. Great conversation, Doug, Thanks for
Speaker 1: being here. Don't be a Doug High. Always a pleasure,
Speaker 1: of course to spend time with our friend Genie Chanzano,
Speaker 1: a member of the family, and I feel so close
Speaker 1: to Genie being in New York right now. We'll do
Speaker 1: it again tomorrow. On the fastest hour in politics, I've
Speaker 1: Joe Matthew, this is Bloomberg