1 00:00:01,880 --> 00:00:06,560 Speaker 1: Now from our nation's capital. This is Bloomberg Sound On. 2 00:00:07,600 --> 00:00:10,160 Speaker 1: Everybody who goes to the store, everybody who buy gas, 3 00:00:10,160 --> 00:00:12,600 Speaker 1: they know that inflation is here. The voters who are 4 00:00:12,640 --> 00:00:15,319 Speaker 1: really not focused on pro or anti Trump, they were 5 00:00:15,360 --> 00:00:18,840 Speaker 1: focused on core issues that matter to the Bloomberg Sound 6 00:00:18,920 --> 00:00:23,279 Speaker 1: On politics, policy, and perspective from DC's top name. I 7 00:00:23,320 --> 00:00:26,200 Speaker 1: think the billionaire tact is good, but I think it's 8 00:00:26,200 --> 00:00:29,240 Speaker 1: more than that issue than a funding issue. Upgrading and 9 00:00:29,320 --> 00:00:33,240 Speaker 1: maintenance of roads and bridges. Hold the six hundred thousand 10 00:00:33,479 --> 00:00:37,680 Speaker 1: new jobs would be created. Bloomberg Sound On with Joe 11 00:00:37,800 --> 00:00:43,920 Speaker 1: Matthew on Bloomberg Radio Live from Washington, Inside the Bubble 12 00:00:44,120 --> 00:00:49,040 Speaker 1: on this Thanksgiving, with fresh data on inflation and a 13 00:00:49,120 --> 00:00:51,520 Speaker 1: peek behind the curtain at the Federal Reserve. We're gonna 14 00:00:51,560 --> 00:00:54,960 Speaker 1: take a deep dive with Bloomberg Economics editor Michael McKee 15 00:00:55,000 --> 00:00:58,800 Speaker 1: and explore the political risks the economy and financial markets 16 00:00:58,840 --> 00:01:01,240 Speaker 1: are posing for President Biden. Later, we'll look at the 17 00:01:01,320 --> 00:01:03,840 Speaker 1: role China is playing and dictating the rules of engagement 18 00:01:03,840 --> 00:01:06,720 Speaker 1: when it comes to politics and business. As you probably 19 00:01:06,760 --> 00:01:10,319 Speaker 1: heard Jamie Diamond apologizing for insulting Beijing a week after 20 00:01:10,360 --> 00:01:14,360 Speaker 1: the Biden She summit The sound On signature panel is 21 00:01:14,400 --> 00:01:17,640 Speaker 1: here for the hour as well. Bloomberg Politics contributors Jeanie 22 00:01:17,720 --> 00:01:21,240 Speaker 1: Schanzano and Rick Davis share insights on these stories and 23 00:01:21,280 --> 00:01:24,119 Speaker 1: a few Thanksgiving traditions here in the nation's capital while 24 00:01:24,160 --> 00:01:26,080 Speaker 1: we're at it. Thankful to have you with us on 25 00:01:26,120 --> 00:01:29,760 Speaker 1: this day before. It's all family this hour, our Bloomberg 26 00:01:29,800 --> 00:01:32,760 Speaker 1: family that makes all the reporting behind this program possible. 27 00:01:33,760 --> 00:01:35,639 Speaker 1: And we are going to start today with our voice 28 00:01:35,680 --> 00:01:38,959 Speaker 1: on the Fed, Bloomberg Economics editor Michael McKee. After hearing 29 00:01:39,040 --> 00:01:42,480 Speaker 1: minutes from the last f O m C meeting and 30 00:01:42,520 --> 00:01:45,080 Speaker 1: after the latest reading on inflation, the Fed's preferred gauge, 31 00:01:45,160 --> 00:01:49,240 Speaker 1: the PCE deflator, rose in October at the fastest clip 32 00:01:50,200 --> 00:01:53,559 Speaker 1: in three decades. This after we learned that consumer spending 33 00:01:53,640 --> 00:01:56,640 Speaker 1: rose by the most since marks big data dump. This morning, 34 00:01:56,720 --> 00:02:00,840 Speaker 1: Tom Keane was wound up. Then of Fed minutes came 35 00:02:00,880 --> 00:02:04,080 Speaker 1: out and the markets turned lower. As you heard from Charlie, 36 00:02:04,720 --> 00:02:07,240 Speaker 1: not what the White House wanted to hear today. So 37 00:02:07,320 --> 00:02:09,760 Speaker 1: let's dig into it with Michael McKee. Mike, it's great 38 00:02:09,760 --> 00:02:13,280 Speaker 1: to have you on sound On. Thank you. So we 39 00:02:13,360 --> 00:02:15,320 Speaker 1: finally got some minutes here in a little peek behind 40 00:02:15,320 --> 00:02:16,840 Speaker 1: the curtain. We've had a lot of peaks behind the 41 00:02:16,880 --> 00:02:19,080 Speaker 1: curtain over the last week or so. This has been 42 00:02:19,080 --> 00:02:21,840 Speaker 1: a big week for the FED, and gosh, well it's 43 00:02:21,880 --> 00:02:25,000 Speaker 1: only Wednesday here. Let's start with the news at hand 44 00:02:25,440 --> 00:02:27,800 Speaker 1: and what we learned about this last meeting. The headline 45 00:02:27,840 --> 00:02:30,840 Speaker 1: FED official stressed flexibility on tap er pace. The market 46 00:02:30,880 --> 00:02:34,240 Speaker 1: doesn't seem to like it. Well, the market is focused 47 00:02:34,240 --> 00:02:39,320 Speaker 1: on another sentence within that paragraph, which various members of 48 00:02:39,360 --> 00:02:42,960 Speaker 1: the FED said, the FEDS Open Market Committee said that 49 00:02:43,000 --> 00:02:47,520 Speaker 1: they might have to consider adjusting the pace of asset 50 00:02:47,560 --> 00:02:51,840 Speaker 1: purchases and raising the target rate for the Federal funds 51 00:02:52,280 --> 00:02:56,360 Speaker 1: rate sooner than participants currently anticipated. So there was talk 52 00:02:56,840 --> 00:03:01,440 Speaker 1: about a sooner FED rate is bringing that forward, and 53 00:03:01,480 --> 00:03:04,480 Speaker 1: that's what the markets are focusing on. So I guess 54 00:03:04,520 --> 00:03:07,680 Speaker 1: as we pull back from this is the earth shifting 55 00:03:07,760 --> 00:03:10,360 Speaker 1: under the Fed's feet here. Everyone has been, you know, 56 00:03:10,440 --> 00:03:13,320 Speaker 1: pretty settled on the transitory line, at least coming out 57 00:03:13,320 --> 00:03:15,480 Speaker 1: of the chair. And what we hear from the White House, 58 00:03:15,520 --> 00:03:17,560 Speaker 1: and you know, I'm coming to you somewhat from the 59 00:03:17,560 --> 00:03:22,640 Speaker 1: political perspective and the semantics perspective here in Washington, is 60 00:03:22,680 --> 00:03:25,120 Speaker 1: this fat about to start singing a different tune on inflation. 61 00:03:25,840 --> 00:03:28,640 Speaker 1: There's a good possibility that that's the case. They still 62 00:03:28,680 --> 00:03:31,440 Speaker 1: believe the minutes show that three weeks ago they did, 63 00:03:31,919 --> 00:03:33,800 Speaker 1: and I think even with the data that we have 64 00:03:33,960 --> 00:03:36,440 Speaker 1: had over the past couple of days, they still believe 65 00:03:36,520 --> 00:03:41,200 Speaker 1: that the inflation acceleration is transitory. You just have to 66 00:03:41,240 --> 00:03:44,960 Speaker 1: define transitory is a longer period of time. It's a 67 00:03:45,160 --> 00:03:49,280 Speaker 1: lot based on the supply chain problems that we've had, 68 00:03:49,320 --> 00:03:52,600 Speaker 1: both for goods and in trying to get people back 69 00:03:52,640 --> 00:03:55,200 Speaker 1: into the labor force, and that in two thousand and 70 00:03:55,240 --> 00:03:59,000 Speaker 1: twenty two those things will ease and inflation will start 71 00:03:59,000 --> 00:04:01,560 Speaker 1: to come back down. But they are worried that the 72 00:04:01,600 --> 00:04:04,480 Speaker 1: idea of inflation is starting to get embedded in the 73 00:04:04,520 --> 00:04:08,120 Speaker 1: public psyche. Obviously, we see that in the political polls 74 00:04:08,200 --> 00:04:12,440 Speaker 1: about President Biden, and we see it in the falling 75 00:04:12,600 --> 00:04:16,760 Speaker 1: consumer confidence numbers. And so they are aware that they 76 00:04:16,800 --> 00:04:21,200 Speaker 1: may need to do something to try to reassure the 77 00:04:21,200 --> 00:04:23,599 Speaker 1: public and Wall Street that they're on top of this. 78 00:04:23,960 --> 00:04:27,440 Speaker 1: Beyond increasing the pace of tapering, are you talking rate 79 00:04:27,480 --> 00:04:30,400 Speaker 1: hikes A getting to rate hikes more quickly, Well, they're 80 00:04:30,440 --> 00:04:33,599 Speaker 1: leaving the option open if they increase the pace of 81 00:04:33,600 --> 00:04:37,039 Speaker 1: the taper, they can start raising rates sooner. I think 82 00:04:37,080 --> 00:04:40,240 Speaker 1: what you'll hear is people starting to talk about the 83 00:04:40,240 --> 00:04:44,600 Speaker 1: fact that we might have to consider sooner rate increases 84 00:04:45,080 --> 00:04:47,240 Speaker 1: and see if jaw boning does some of the work. 85 00:04:47,760 --> 00:04:50,479 Speaker 1: If they come out at the December fifteenth meeting and 86 00:04:50,520 --> 00:04:53,560 Speaker 1: say we're speeding up the pace of tapering, the market's 87 00:04:53,560 --> 00:04:56,240 Speaker 1: going to take that as a signal of perhaps faster 88 00:04:56,320 --> 00:05:00,360 Speaker 1: rate increases, and maybe by raising market rates, they'll do 89 00:05:00,440 --> 00:05:02,440 Speaker 1: some of the Fed's job for them. So I don't 90 00:05:02,520 --> 00:05:05,799 Speaker 1: necessarily think we're baked into faster rate moves, but they're 91 00:05:05,839 --> 00:05:08,680 Speaker 1: becoming more of a possibility. We've heard from quite a 92 00:05:08,760 --> 00:05:11,520 Speaker 1: number of folks on the FED just in general, Clara A. 93 00:05:11,760 --> 00:05:17,280 Speaker 1: Waller Blard Daily talking on Bloomberg that it may be 94 00:05:17,520 --> 00:05:21,680 Speaker 1: important to start speeding up the tapering process. Are they outnumbered? No. 95 00:05:21,920 --> 00:05:25,000 Speaker 1: I think they're is starting to gain a majority. We 96 00:05:25,080 --> 00:05:29,960 Speaker 1: haven't pulled everybody, but most members who have spoken have 97 00:05:30,080 --> 00:05:32,919 Speaker 1: suggested they were open to the possibility. And when you 98 00:05:32,960 --> 00:05:35,520 Speaker 1: get dated like we had today, they'll have a CPI 99 00:05:35,640 --> 00:05:38,279 Speaker 1: report before the next meeting, and we'll of course see 100 00:05:38,839 --> 00:05:41,800 Speaker 1: a week from Friday the jobs report and they'll have 101 00:05:41,839 --> 00:05:44,000 Speaker 1: a much better idea of of where they are. The 102 00:05:44,040 --> 00:05:47,719 Speaker 1: people who thought that maybe they should wait longer had 103 00:05:47,800 --> 00:05:50,279 Speaker 1: been suggesting by the end of the year that we 104 00:05:50,320 --> 00:05:53,320 Speaker 1: would see a change in the inflation picture. But we're 105 00:05:53,320 --> 00:05:56,120 Speaker 1: not seeing it. The whole idea of transitory it must 106 00:05:56,160 --> 00:05:57,839 Speaker 1: be something that you laugh about, since you do this 107 00:05:57,880 --> 00:06:01,040 Speaker 1: all day, and how much has been about that choice 108 00:06:01,040 --> 00:06:04,760 Speaker 1: of term. If the administration and more specifically, the FED 109 00:06:04,880 --> 00:06:08,400 Speaker 1: had chosen another way to talk about this, would this 110 00:06:08,480 --> 00:06:12,680 Speaker 1: be such a threat to the presidency, to to J. 111 00:06:12,880 --> 00:06:16,240 Speaker 1: Powell's reputation if they hadn't tried to make this sound 112 00:06:16,240 --> 00:06:18,840 Speaker 1: like it was temporary, but rather something that they were 113 00:06:18,839 --> 00:06:21,520 Speaker 1: prepared to deal with based on the data. I think 114 00:06:21,520 --> 00:06:24,520 Speaker 1: that that there is truth in that that the American 115 00:06:24,600 --> 00:06:29,120 Speaker 1: people don't follow the data that closely, and they do 116 00:06:29,320 --> 00:06:32,240 Speaker 1: follow the price of gasoline and food, and even though 117 00:06:32,279 --> 00:06:34,440 Speaker 1: the FED can't do anything about either one or those, 118 00:06:34,560 --> 00:06:36,640 Speaker 1: the idea that the FED is saying inflation is going 119 00:06:36,680 --> 00:06:39,080 Speaker 1: to be transitory, and you go to the gas pump 120 00:06:39,080 --> 00:06:41,960 Speaker 1: and you're paying extra every time you go, you're gonna 121 00:06:42,000 --> 00:06:45,440 Speaker 1: start saying this is a problem. That is that the 122 00:06:45,600 --> 00:06:49,640 Speaker 1: officials in Washington don't get And of course Joe Biden 123 00:06:49,720 --> 00:06:53,800 Speaker 1: has the unfortunate role of president in this case. Because 124 00:06:53,839 --> 00:06:57,320 Speaker 1: presidents always get blamed for whatever happens in the economy 125 00:06:57,320 --> 00:07:00,440 Speaker 1: on their watch, even though they don't have much to 126 00:07:00,440 --> 00:07:03,160 Speaker 1: do with it. You might suggest we overplay the impact 127 00:07:03,160 --> 00:07:05,479 Speaker 1: that the commander in chief has on the trajectory of 128 00:07:05,480 --> 00:07:08,440 Speaker 1: our economy, and they're all subject to that. Of course, 129 00:07:08,480 --> 00:07:10,920 Speaker 1: we saw Joe Biden standing on stage earlier this week. 130 00:07:10,960 --> 00:07:13,240 Speaker 1: I was in the room as he rolled out the 131 00:07:13,320 --> 00:07:16,920 Speaker 1: big nominations, not very controversial. J Powell keeps his job, 132 00:07:17,200 --> 00:07:20,600 Speaker 1: and of course Layo Brainer now nominated as vice chair. 133 00:07:20,840 --> 00:07:22,760 Speaker 1: I'm gonna start with this. I'll ask you about the 134 00:07:22,760 --> 00:07:24,440 Speaker 1: open seats in a minute. But as far as these 135 00:07:24,440 --> 00:07:28,880 Speaker 1: two appointments go, the data you're seeing coupled with their 136 00:07:29,200 --> 00:07:31,720 Speaker 1: new tenure, assuming that they're going to be confirmed, does 137 00:07:31,760 --> 00:07:35,600 Speaker 1: that mean any sort of change in philosophy at the FED. No. 138 00:07:35,680 --> 00:07:37,800 Speaker 1: I think it's the opposite. It means that there isn't 139 00:07:37,800 --> 00:07:40,880 Speaker 1: a change in philosostatus quo, and the markets don't have 140 00:07:40,960 --> 00:07:43,800 Speaker 1: to worry about what would a new FED person do, 141 00:07:44,760 --> 00:07:47,200 Speaker 1: a new FED leader do, would they be more hawkish 142 00:07:47,320 --> 00:07:49,760 Speaker 1: or would they be more debbish. How quickly might they 143 00:07:49,840 --> 00:07:53,120 Speaker 1: feel we need to taper that sort of thing. Now 144 00:07:53,160 --> 00:07:54,600 Speaker 1: we can just look at it and go, Okay, we 145 00:07:54,640 --> 00:07:56,680 Speaker 1: have a pretty good idea of how J. Powell thinks 146 00:07:56,720 --> 00:07:59,760 Speaker 1: about things, about how Lal Brainer thinks about things, and 147 00:07:59,800 --> 00:08:02,840 Speaker 1: so as the economy develops, we can still use the 148 00:08:02,960 --> 00:08:05,520 Speaker 1: same models we've been using to try to figure out 149 00:08:05,720 --> 00:08:09,280 Speaker 1: where they're going. So the unknown is these open seats. UH. 150 00:08:09,400 --> 00:08:11,360 Speaker 1: We talked to Brian Deese about it the other night. 151 00:08:11,560 --> 00:08:13,960 Speaker 1: He he says, coming soon essentially the same as the 152 00:08:13,960 --> 00:08:16,120 Speaker 1: president by the end of the year. I think you've 153 00:08:16,120 --> 00:08:19,160 Speaker 1: suggested that maybe early December, UH is when we start 154 00:08:19,200 --> 00:08:23,000 Speaker 1: hearing about these roles. President Biden is promising more diversity, 155 00:08:23,280 --> 00:08:25,840 Speaker 1: a range of views, more perspectives. But when you put 156 00:08:25,840 --> 00:08:28,480 Speaker 1: that against the backdrop of this data and these minutes, 157 00:08:29,120 --> 00:08:32,440 Speaker 1: what does that mean for his decision making process? Well, 158 00:08:32,679 --> 00:08:35,439 Speaker 1: I think you have to step outside of the data 159 00:08:35,600 --> 00:08:39,640 Speaker 1: in this case, because whoever they choose to be a 160 00:08:39,760 --> 00:08:42,880 Speaker 1: governor on the board is going to follow the fed 161 00:08:43,240 --> 00:08:48,240 Speaker 1: UH chairman's lead, probably in voting on monetary policy, but 162 00:08:48,679 --> 00:08:53,120 Speaker 1: in other areas, particularly in bank supervision and regulation, you 163 00:08:53,240 --> 00:08:57,480 Speaker 1: might see a difference My guess is because litle brainer 164 00:08:57,559 --> 00:08:59,800 Speaker 1: did not take the supervision job, and you've got the 165 00:09:00,480 --> 00:09:04,600 Speaker 1: uh Elizabeth Warren wing of the party unhappy about that, 166 00:09:04,600 --> 00:09:07,200 Speaker 1: that he might appoint someone as the vice chair for 167 00:09:07,240 --> 00:09:11,560 Speaker 1: supervision who's even going to be stricter than uh than 168 00:09:11,679 --> 00:09:15,360 Speaker 1: Leo Brainerd. I mean, we see that with the nominee 169 00:09:15,440 --> 00:09:19,440 Speaker 1: for the controller of the currency, and so you could 170 00:09:19,440 --> 00:09:21,240 Speaker 1: see a big difference there where we where we might 171 00:09:21,240 --> 00:09:24,160 Speaker 1: see difference of monetary policy would be at the margins, 172 00:09:24,200 --> 00:09:28,480 Speaker 1: in the sense that one assumes, given everything that he 173 00:09:28,559 --> 00:09:30,800 Speaker 1: has said and stood for, that the president will be 174 00:09:30,840 --> 00:09:35,200 Speaker 1: appointing some minorities to these open seats, and they may 175 00:09:35,240 --> 00:09:38,920 Speaker 1: be even more sympathetic with the idea that the Fed 176 00:09:38,960 --> 00:09:41,960 Speaker 1: adopted of trying to bring down the unemployment rate for 177 00:09:42,000 --> 00:09:45,439 Speaker 1: minorities get more women and minorities into the labor force 178 00:09:45,480 --> 00:09:50,080 Speaker 1: as well. So it might slow any instinct at the 179 00:09:50,120 --> 00:09:54,320 Speaker 1: margin to tighten. Interesting how risky are these nominations, these 180 00:09:54,400 --> 00:09:56,520 Speaker 1: next seats to be filled for president by in the 181 00:09:56,559 --> 00:09:59,680 Speaker 1: market will react? I presume if if if investors don't 182 00:09:59,679 --> 00:10:02,760 Speaker 1: like what they hear, this could be dicey. It could be, 183 00:10:02,800 --> 00:10:06,400 Speaker 1: but I suspect they won't be upset with what they hear. Uh, 184 00:10:06,440 --> 00:10:10,080 Speaker 1: if you are investing in banks, you probably already know 185 00:10:10,200 --> 00:10:13,120 Speaker 1: the President is looking to crack down a little bit 186 00:10:13,120 --> 00:10:17,640 Speaker 1: on them. I mean with with the controller nominee and 187 00:10:18,440 --> 00:10:22,000 Speaker 1: the idea that lele Brander is still around. And we'll 188 00:10:22,040 --> 00:10:25,319 Speaker 1: we'll see what happens with the financial institutions, but that's 189 00:10:25,320 --> 00:10:28,560 Speaker 1: a longer term. When you hear Republicans warned though, that 190 00:10:28,640 --> 00:10:31,240 Speaker 1: the mission of the FED could be changed, for instance, 191 00:10:31,280 --> 00:10:35,280 Speaker 1: by pursuing the war against climate change, you wonder how 192 00:10:35,280 --> 00:10:37,600 Speaker 1: the market's going to react. Yeah, I don't think that 193 00:10:37,600 --> 00:10:41,400 Speaker 1: that's going to happen, especially since Paul remains in charge 194 00:10:41,400 --> 00:10:45,480 Speaker 1: and he's said that the FED is staying out of policy. 195 00:10:45,760 --> 00:10:49,200 Speaker 1: What they will do is make sure that banks and 196 00:10:49,440 --> 00:10:55,679 Speaker 1: other financial institutions don't make loans that could easily be 197 00:10:57,000 --> 00:11:01,079 Speaker 1: defaulted on because the property is underwater more ways than one, 198 00:11:01,679 --> 00:11:05,280 Speaker 1: or could be destroyed in some sort of weather accident 199 00:11:05,480 --> 00:11:07,920 Speaker 1: something like that. And they're gonna worry about the safety 200 00:11:07,960 --> 00:11:12,040 Speaker 1: and soundness of the banking system in the new climate world, 201 00:11:12,360 --> 00:11:16,120 Speaker 1: but they won't venture into areas like buying green bonds 202 00:11:16,320 --> 00:11:20,840 Speaker 1: or other policy moves like that unless Congress explicitly tells 203 00:11:20,880 --> 00:11:22,880 Speaker 1: them to do so. Michael McKee, what's the next big 204 00:11:22,880 --> 00:11:24,880 Speaker 1: stop on the road, the next important data point for 205 00:11:24,920 --> 00:11:27,160 Speaker 1: you before the next meeting. Well, you gotta go with 206 00:11:27,200 --> 00:11:30,319 Speaker 1: the jobs report a week from Friday, because they are 207 00:11:30,679 --> 00:11:33,200 Speaker 1: trying to get more people into the labor force and 208 00:11:33,200 --> 00:11:35,480 Speaker 1: trying to get those unemployment rates down. We'll see what 209 00:11:35,559 --> 00:11:38,439 Speaker 1: kind of progress they make their We're thankful for your 210 00:11:38,480 --> 00:11:40,840 Speaker 1: coverage and your expertise, the fact that you were with 211 00:11:40,920 --> 00:11:43,440 Speaker 1: us today to help distill all of this. Michael McKie 212 00:11:43,440 --> 00:11:46,160 Speaker 1: of Bloomberg, many thanks for being with us, and I'll 213 00:11:46,200 --> 00:11:50,360 Speaker 1: say happy Thanksgiving the same to you. Nice to have 214 00:11:50,440 --> 00:11:53,439 Speaker 1: Michael with us. You may not be surprised to hear 215 00:11:53,440 --> 00:11:56,480 Speaker 1: that people are growing more worried about inflation. We'll put 216 00:11:56,559 --> 00:11:58,679 Speaker 1: numbers to it. Next on sound On, there's a new 217 00:11:58,720 --> 00:12:00,920 Speaker 1: you gov pull out. They ran the numbers for Yahoo 218 00:12:01,040 --> 00:12:05,400 Speaker 1: showing higher prices impacting the lives of more than three 219 00:12:05,480 --> 00:12:09,000 Speaker 1: quarters of Americans. This is why President Biden and his 220 00:12:09,040 --> 00:12:10,920 Speaker 1: team are talking about it every day, and coming up 221 00:12:10,960 --> 00:12:14,199 Speaker 1: will assemble the panel to look at this research see 222 00:12:14,240 --> 00:12:16,400 Speaker 1: what it all means for the President and his ability 223 00:12:16,520 --> 00:12:22,199 Speaker 1: to manage inflation. Bloomberg Politics contributors Jeanie Schanzano and Rick Davis. 224 00:12:22,280 --> 00:12:25,360 Speaker 1: Up next on the Wednesday edition of Sound On the 225 00:12:25,440 --> 00:12:28,520 Speaker 1: Fastest Hour in Politics, will check markets and traffic. Next 226 00:12:28,559 --> 00:12:37,120 Speaker 1: to I'm Joe Matthew. This is Bloomberg. You're listening to 227 00:12:37,240 --> 00:12:44,520 Speaker 1: Bloomberg Sound On with Joe Matthew on Bloomberg Radio. Three 228 00:12:44,559 --> 00:12:49,440 Speaker 1: quarters of Americans say inflation is affecting their lives, but 229 00:12:49,559 --> 00:12:52,480 Speaker 1: only eighteen percent say President Biden is doing enough to 230 00:12:52,520 --> 00:12:55,160 Speaker 1: address it. The findings of a new you gov poll 231 00:12:55,240 --> 00:12:58,080 Speaker 1: run for Yahoo News echoing concerns that we have seen 232 00:12:58,160 --> 00:13:00,840 Speaker 1: in a series of recent polls over the past couple 233 00:13:00,880 --> 00:13:03,600 Speaker 1: of weeks, and we bring in the panel for more 234 00:13:03,679 --> 00:13:08,040 Speaker 1: with Bloomberg Politics contributors Geanie Chanzano and Rick Davis. Great 235 00:13:08,080 --> 00:13:09,960 Speaker 1: to have both of you here once again today for 236 00:13:10,000 --> 00:13:12,360 Speaker 1: the our Genie. These numbers, like others recently, have got 237 00:13:12,360 --> 00:13:13,760 Speaker 1: to be spook in the White House. There was one 238 00:13:13,760 --> 00:13:16,480 Speaker 1: that jumped out to me that people who said the 239 00:13:16,520 --> 00:13:22,240 Speaker 1: most important issue facing America more than any other issue, 240 00:13:22,240 --> 00:13:27,160 Speaker 1: including COVID inflation, if the President is not doing enough 241 00:13:27,160 --> 00:13:29,720 Speaker 1: to address it. Is there just a misunderstanding that Americans 242 00:13:29,760 --> 00:13:32,840 Speaker 1: have over how much influence the commander in chief has 243 00:13:32,880 --> 00:13:36,040 Speaker 1: over our economy. As we were just discussing with Michael McKee. 244 00:13:36,600 --> 00:13:38,600 Speaker 1: You know, I think in this country, from the time 245 00:13:38,640 --> 00:13:41,000 Speaker 1: that we're kids, we are told the president is the 246 00:13:41,080 --> 00:13:43,640 Speaker 1: most powerful person, not only in the country, but quite 247 00:13:43,640 --> 00:13:47,280 Speaker 1: frankly the world, and that includes his or maybe someday 248 00:13:47,280 --> 00:13:52,480 Speaker 1: her ability to impact the economy. The reality is, constitutionally, legally, 249 00:13:52,559 --> 00:13:55,600 Speaker 1: their powers are limited. You know. One of my favorite 250 00:13:55,600 --> 00:13:58,400 Speaker 1: stories was George W. Bush, who was more prepared to 251 00:13:58,400 --> 00:14:01,160 Speaker 1: be president than anyone else given he watched his father 252 00:14:01,240 --> 00:14:04,960 Speaker 1: do it. Leaving the White House, told a reporter the 253 00:14:05,040 --> 00:14:07,120 Speaker 1: thing that surprised him most after eight years of being 254 00:14:07,120 --> 00:14:10,080 Speaker 1: president how little power he had. And that is the 255 00:14:10,120 --> 00:14:13,040 Speaker 1: reality of the U. S. President. But the American people 256 00:14:13,040 --> 00:14:16,679 Speaker 1: have heightened expectations that benefits the president sometimes, but at 257 00:14:16,720 --> 00:14:19,600 Speaker 1: times like this it is a real problem for them 258 00:14:19,600 --> 00:14:22,160 Speaker 1: and they try, like Biden has been doing, to look 259 00:14:22,200 --> 00:14:24,880 Speaker 1: like they are acting, but their ability to influence the 260 00:14:24,920 --> 00:14:28,120 Speaker 1: market is limited. I'm fascinated by that. Of course, Rick, 261 00:14:28,240 --> 00:14:31,720 Speaker 1: his father knew all about this, with going from approval 262 00:14:31,840 --> 00:14:34,640 Speaker 1: ratings in the nineties following the First Gulf War to 263 00:14:34,880 --> 00:14:38,240 Speaker 1: being a first term president, because of an economic recession 264 00:14:38,240 --> 00:14:41,000 Speaker 1: that he really may not have had any power over. Yeah, 265 00:14:41,040 --> 00:14:43,360 Speaker 1: I mean, I think that is a good example of 266 00:14:43,400 --> 00:14:47,360 Speaker 1: the economic drive by shooting in politics. But but look, 267 00:14:47,400 --> 00:14:50,840 Speaker 1: the most powerful thing the president has is his bully pulpit. 268 00:14:51,280 --> 00:14:54,360 Speaker 1: That's his ability to address the nation, to address the 269 00:14:54,400 --> 00:15:00,440 Speaker 1: world and set a standard of empathy, understanding challenge. And 270 00:15:00,520 --> 00:15:03,560 Speaker 1: this president has spent the last few months. We were 271 00:15:03,560 --> 00:15:06,800 Speaker 1: talking about that earlier in your interview with Mike McKee, 272 00:15:07,160 --> 00:15:10,880 Speaker 1: about talking about how inflation is transient, not how inflation 273 00:15:10,920 --> 00:15:12,720 Speaker 1: may affect you and how to prepare for it and 274 00:15:12,720 --> 00:15:16,560 Speaker 1: what they're doing about it. But that Grin and Barrett guys, now, 275 00:15:16,720 --> 00:15:20,120 Speaker 1: that's a bad use of the bully pulpit when you 276 00:15:20,160 --> 00:15:23,320 Speaker 1: tell people that you really don't care about something that's 277 00:15:23,360 --> 00:15:26,640 Speaker 1: affecting them as deeply as inflation has hit the American public. 278 00:15:27,080 --> 00:15:29,160 Speaker 1: Are you surprised? You need to see the numbers continue 279 00:15:29,200 --> 00:15:31,200 Speaker 1: to deteriorate. Where do we find a floor here? For 280 00:15:31,360 --> 00:15:34,120 Speaker 1: I mean, approval ratings in some of these polls recently 281 00:15:34,440 --> 00:15:37,520 Speaker 1: have been in the upper thirties for Joe Biden. I 282 00:15:37,640 --> 00:15:40,400 Speaker 1: wouldn't be surprised if they stay this way for some 283 00:15:40,520 --> 00:15:43,640 Speaker 1: time and you know, I think another challenge that Joe 284 00:15:43,680 --> 00:15:48,520 Speaker 1: Biden has is his message is not clear precisely because 285 00:15:48,600 --> 00:15:52,040 Speaker 1: he has come to us repeatedly saying he wants to 286 00:15:52,080 --> 00:15:55,560 Speaker 1: reduce dependence on fossil fuel and combat climate change. That's 287 00:15:55,560 --> 00:15:59,360 Speaker 1: a major goal of his administration. Yet when the prices 288 00:15:59,400 --> 00:16:02,080 Speaker 1: start to go up for gas, he runs out and 289 00:16:02,320 --> 00:16:05,960 Speaker 1: releases the reserves. So we are getting mixed messages from 290 00:16:06,000 --> 00:16:09,640 Speaker 1: this White House, and they really have to clarify. If 291 00:16:09,640 --> 00:16:12,760 Speaker 1: the goal is to decrease dependency, are we going to 292 00:16:12,800 --> 00:16:14,720 Speaker 1: put up with the pain at the pump that is 293 00:16:14,760 --> 00:16:17,320 Speaker 1: going to cause? And what can he do to alleviate 294 00:16:17,400 --> 00:16:20,600 Speaker 1: that beyond this step he took yesterday with the oil reserves. 295 00:16:20,920 --> 00:16:23,800 Speaker 1: Also in this survey ric, a majority of Americans I'll 296 00:16:23,800 --> 00:16:27,160 Speaker 1: be at a small one say they're worried that they 297 00:16:27,160 --> 00:16:29,600 Speaker 1: will not be able to afford what they need during 298 00:16:29,600 --> 00:16:34,040 Speaker 1: the holidays due to inflation. Say they're worried they won't 299 00:16:34,040 --> 00:16:36,880 Speaker 1: be able to get what they need due to shortages. 300 00:16:37,400 --> 00:16:41,800 Speaker 1: I know we have supply neck uh supply chain concerns here, 301 00:16:41,840 --> 00:16:45,040 Speaker 1: but this is an economy that is actually growing in 302 00:16:45,080 --> 00:16:48,240 Speaker 1: a stock market that's still pretty darn close to all 303 00:16:48,320 --> 00:16:51,200 Speaker 1: time highs, Rick, how could there be such a disconnect? Well, Joe, 304 00:16:51,200 --> 00:16:53,880 Speaker 1: I think you hit a really essential item, right. This 305 00:16:54,040 --> 00:16:58,080 Speaker 1: president has been wildly successful in getting his program pass 306 00:16:58,200 --> 00:17:01,680 Speaker 1: You got a huge for a trillion dollar stimulus bill 307 00:17:01,760 --> 00:17:04,600 Speaker 1: in the first few months of his presidency. He's gotten 308 00:17:04,680 --> 00:17:09,040 Speaker 1: his trillion dollar infrastructure bill passed just recently. You know, 309 00:17:09,119 --> 00:17:12,120 Speaker 1: he's had a booming economy. The stock markets are at 310 00:17:12,160 --> 00:17:16,160 Speaker 1: all time highs, and yet he has the worst ratings 311 00:17:16,200 --> 00:17:19,480 Speaker 1: of managing the economy of any modern presidency right now 312 00:17:19,560 --> 00:17:24,040 Speaker 1: within the first year. So so I do think timing matters, right, 313 00:17:24,080 --> 00:17:27,040 Speaker 1: He's had this crisis of inflation come at a time 314 00:17:27,040 --> 00:17:29,840 Speaker 1: when people are highly sensitive to it. As you say, 315 00:17:30,080 --> 00:17:32,119 Speaker 1: you know, they got to get in a car and drive. 316 00:17:32,240 --> 00:17:34,600 Speaker 1: Gas prices are at the highest and seven years they 317 00:17:34,600 --> 00:17:36,359 Speaker 1: got to go to the store and buy a turkey. 318 00:17:36,359 --> 00:17:38,399 Speaker 1: My turkey stinner this year than it used to be 319 00:17:38,440 --> 00:17:42,439 Speaker 1: by four percent. And so I think part of it 320 00:17:42,520 --> 00:17:46,280 Speaker 1: is timing. But like this administration has not been able 321 00:17:46,320 --> 00:17:50,199 Speaker 1: to assemble a message to the American public that is 322 00:17:50,359 --> 00:17:52,679 Speaker 1: focused on the positives. You know, we really thought this 323 00:17:52,760 --> 00:17:54,639 Speaker 1: was gonna be a break from Trump, right, it was 324 00:17:54,640 --> 00:17:57,760 Speaker 1: gonna be stable and easy, and this guy was gonna 325 00:17:57,800 --> 00:18:00,520 Speaker 1: be like really empathetic with the nai It is one 326 00:18:00,520 --> 00:18:04,439 Speaker 1: of volatility exactly. So Genie, does he need to take 327 00:18:04,480 --> 00:18:08,320 Speaker 1: a page from Donald Trump? Starts tweeting about every all 328 00:18:08,400 --> 00:18:10,480 Speaker 1: time high that the stock market sets. It seemed to 329 00:18:10,520 --> 00:18:12,960 Speaker 1: work the last four years. You know, I don't think 330 00:18:13,119 --> 00:18:15,280 Speaker 1: he wants to take a page from Donald Trump, but 331 00:18:15,800 --> 00:18:18,119 Speaker 1: I do think you know the reality as we you know, 332 00:18:18,240 --> 00:18:20,520 Speaker 1: I remember when I served as dean of the College, 333 00:18:20,560 --> 00:18:23,400 Speaker 1: somebody told me you're gonna do things and the payoff 334 00:18:23,440 --> 00:18:26,159 Speaker 1: won't come until long after you leave. And this is 335 00:18:26,400 --> 00:18:28,320 Speaker 1: and I'm sad to say that's true. They were right, 336 00:18:28,480 --> 00:18:30,280 Speaker 1: and I and I think that's part of it. You know, 337 00:18:30,359 --> 00:18:33,560 Speaker 1: to Rick's point, he did pass the you know, two 338 00:18:33,640 --> 00:18:37,639 Speaker 1: really big bills so far with really large investments in 339 00:18:37,640 --> 00:18:41,040 Speaker 1: the economy. But people aren't seeing that, and they aren't 340 00:18:41,040 --> 00:18:44,000 Speaker 1: seeing the relief from that at this point, and that 341 00:18:44,080 --> 00:18:46,440 Speaker 1: may not come until it's too late for Democrats in 342 00:18:46,480 --> 00:18:48,919 Speaker 1: the mid term. You know, we're almost out of time here, Rick, 343 00:18:48,960 --> 00:18:51,280 Speaker 1: But does the blame fall in the communications office at 344 00:18:51,320 --> 00:18:53,520 Speaker 1: the White House? Who's responsible for this? If it's a 345 00:18:53,520 --> 00:18:56,600 Speaker 1: messaging problem, Well, the buck away stops in the Oval office. 346 00:18:56,640 --> 00:19:00,200 Speaker 1: So that's where this is going. Rick and Jane year 347 00:19:00,240 --> 00:19:02,359 Speaker 1: with us for the hour as we get ready for 348 00:19:02,359 --> 00:19:04,520 Speaker 1: the big holiday. Here. Glad you guys are with us. 349 00:19:05,200 --> 00:19:08,680 Speaker 1: Charlie's here too. Will check the markets coming up, and 350 00:19:08,760 --> 00:19:12,280 Speaker 1: we'll check traffic as well. Here on Bloomberg Sound On 351 00:19:12,320 --> 00:19:14,080 Speaker 1: as you would expected to let you will help you 352 00:19:14,080 --> 00:19:16,679 Speaker 1: get home coming up, Jamie Diamond has to watch what 353 00:19:16,720 --> 00:19:18,280 Speaker 1: he says about China. Will let you know what he 354 00:19:18,400 --> 00:19:24,960 Speaker 1: said and the implications. This is Bloomberg broadcasting live from 355 00:19:24,960 --> 00:19:30,119 Speaker 1: our nation's capital, Bloomberg to New York, Bloomberg eleven Frio 356 00:19:30,440 --> 00:19:34,000 Speaker 1: to Boston, Bloomberg one oh six one to San Francisco, 357 00:19:34,080 --> 00:19:38,840 Speaker 1: Bloomberg nine sixty to the country Serious XM Channel one, 358 00:19:39,119 --> 00:19:42,280 Speaker 1: and around the globe the Bloomberg Business app. Then Bloomberg 359 00:19:42,359 --> 00:19:47,000 Speaker 1: Radio dot Com. This is Bloomberg Sound On with Joe 360 00:19:47,040 --> 00:19:52,040 Speaker 1: Matthew headline on the terminal. Diamond regrets quit j D. 361 00:19:52,200 --> 00:19:59,520 Speaker 1: Morgan to outlast China Communist Party. Oh he's already apologized 362 00:19:59,560 --> 00:20:02,520 Speaker 1: for it. But what does it say about American companies 363 00:20:02,560 --> 00:20:06,040 Speaker 1: doing business in China and more broadly about our two 364 00:20:06,119 --> 00:20:09,760 Speaker 1: countries relationship. Will discuss next with our signature panel. Bloomberg 365 00:20:09,760 --> 00:20:13,560 Speaker 1: Politics contributors Genie Chantano and Rick Davis up next. I 366 00:20:13,560 --> 00:20:16,760 Speaker 1: wish the panel, the Signature panel was with us every day, 367 00:20:16,760 --> 00:20:19,080 Speaker 1: but they have been every day this week, and Rick 368 00:20:19,080 --> 00:20:21,240 Speaker 1: and Genie of course are with us this hour as 369 00:20:21,280 --> 00:20:23,040 Speaker 1: we find the headline on the terminal. Reason why I 370 00:20:23,040 --> 00:20:27,800 Speaker 1: was asking about JPM. Jamie Diamond regrets the quip did 371 00:20:27,800 --> 00:20:29,560 Speaker 1: you hear what he said about China? This was at 372 00:20:29,560 --> 00:20:33,240 Speaker 1: an event Boston College Chief Executives Club. They bring in 373 00:20:33,320 --> 00:20:36,480 Speaker 1: lots of big CEO politicians for speaking sessions. I used 374 00:20:36,520 --> 00:20:39,040 Speaker 1: to go to a lot of them. Is actually quite fascinating. 375 00:20:39,600 --> 00:20:41,720 Speaker 1: He was up there to open a new branch Mattapan, 376 00:20:43,160 --> 00:20:46,320 Speaker 1: where Jamie Diamond was quoted to say, I'm not woke. 377 00:20:47,400 --> 00:20:50,240 Speaker 1: Fascinating story up in that neck of the woods. But 378 00:20:50,280 --> 00:20:53,000 Speaker 1: it was the China comment that really made the news, 379 00:20:53,320 --> 00:20:56,359 Speaker 1: as he discussed his company's commitment to China in a 380 00:20:56,400 --> 00:21:01,639 Speaker 1: wide ranging discussion at Boston College Executives Club. Listen to 381 00:21:01,760 --> 00:21:04,480 Speaker 1: what he said. I made a joke that the Communist 382 00:21:04,480 --> 00:21:07,800 Speaker 1: Party of celebrate d Year, so is JP Morgan, and 383 00:21:08,400 --> 00:21:12,040 Speaker 1: I'll make you bet we last longer. I can't say 384 00:21:12,080 --> 00:21:15,320 Speaker 1: that in China, I can't say that anywhere, as it 385 00:21:15,359 --> 00:21:18,480 Speaker 1: turns out, so people got very upset. This became a 386 00:21:18,520 --> 00:21:22,479 Speaker 1: big problem on social media. I'm sure his phone started 387 00:21:22,560 --> 00:21:28,440 Speaker 1: ringing immediately on Weibo, China's China's Twitter, Chan Ye, a 388 00:21:28,520 --> 00:21:31,399 Speaker 1: lecturer at Food and University more than one and a 389 00:21:31,400 --> 00:21:35,400 Speaker 1: half million followers, says, this guy is really quite arrogant. 390 00:21:35,640 --> 00:21:39,360 Speaker 1: Looks like JP Morgan doesn't want it's newly acquired license. 391 00:21:41,800 --> 00:21:44,000 Speaker 1: Hugh Jin if I'm pronouncing his name right, editor in 392 00:21:44,040 --> 00:21:47,280 Speaker 1: chief the Communist Party's Global Times newspaper, posting on we 393 00:21:47,480 --> 00:21:50,919 Speaker 1: Bow as well four million followers, I bet the Chinese 394 00:21:51,000 --> 00:21:55,000 Speaker 1: Communist Party will outlast the United States of America. So 395 00:21:55,080 --> 00:21:58,639 Speaker 1: I guess no surprise Rick Davis to hear Jamie Diamond 396 00:21:58,760 --> 00:22:03,800 Speaker 1: apologizing essentially within twenty four hours of making that remark. Yeah, 397 00:22:03,800 --> 00:22:05,920 Speaker 1: I mean, I understand why he's apologizing, but I hope 398 00:22:05,920 --> 00:22:10,760 Speaker 1: he's right. UM. My own personal view is I think 399 00:22:10,760 --> 00:22:14,560 Speaker 1: the Chinese Communist Party should collapse within the next hundred 400 00:22:14,640 --> 00:22:18,280 Speaker 1: years and Morgan still going strong. Well, and this look 401 00:22:18,359 --> 00:22:20,880 Speaker 1: that may be the case, But boy, when you're Jamie Diamond, 402 00:22:20,880 --> 00:22:24,400 Speaker 1: and this, by the way, has happened to politicians to athletes, 403 00:22:24,440 --> 00:22:27,840 Speaker 1: to celebrities. You say the wrong thing about Beijing, you 404 00:22:27,960 --> 00:22:29,640 Speaker 1: better clean it up because you might not be doing 405 00:22:29,680 --> 00:22:32,760 Speaker 1: business there next week. Jeannie, that's right. First of all, 406 00:22:32,760 --> 00:22:34,840 Speaker 1: I can't get over Charlie Pellett doing all of that 407 00:22:34,880 --> 00:22:37,160 Speaker 1: on the terminal while talking to you on the air. 408 00:22:37,320 --> 00:22:40,080 Speaker 1: He isn't ninja. That is amazing, probably making turkey of 409 00:22:40,440 --> 00:22:43,520 Speaker 1: that's right. At the same time, No, you know, I 410 00:22:43,560 --> 00:22:46,120 Speaker 1: think it sounded like from the clip we've all heard 411 00:22:46,160 --> 00:22:48,320 Speaker 1: that that he knew he shouldn't be saying it. He 412 00:22:48,440 --> 00:22:50,960 Speaker 1: did say it, and he walked it back within twenty 413 00:22:50,960 --> 00:22:53,760 Speaker 1: four hours. He had to do that. Um, you know, 414 00:22:54,440 --> 00:22:57,560 Speaker 1: to a certain extent, it reminded me way back, you know, 415 00:22:57,680 --> 00:23:01,720 Speaker 1: several years ago when Shelley Adelson made much more vitriolic 416 00:23:01,760 --> 00:23:05,560 Speaker 1: comments about Iran, and then they were the victim of 417 00:23:05,600 --> 00:23:09,439 Speaker 1: an enormous malware cyber attack as a result that the 418 00:23:09,480 --> 00:23:12,400 Speaker 1: FBI later confirmed, So you know there, you know, there 419 00:23:12,440 --> 00:23:15,760 Speaker 1: are huge, huge ramifications for this for somebody in Jamie 420 00:23:15,760 --> 00:23:19,439 Speaker 1: Diamond's position, and of course with JP Morgan investing what 421 00:23:19,600 --> 00:23:23,680 Speaker 1: twenty billion in China and having expansion plans, the implications 422 00:23:23,680 --> 00:23:26,080 Speaker 1: are enormous and and he was right to walk it back. 423 00:23:26,119 --> 00:23:28,560 Speaker 1: He had to do that. Only Rick Davis can say 424 00:23:28,560 --> 00:23:31,480 Speaker 1: those kinds of things. Yeah, Rick could to it. But 425 00:23:31,560 --> 00:23:33,439 Speaker 1: the stament, by the way, I regret and should not 426 00:23:33,480 --> 00:23:36,080 Speaker 1: have made that comment, diamond says, I was trying to 427 00:23:36,119 --> 00:23:39,960 Speaker 1: emphasize the strength and longevity of our company. We should 428 00:23:39,960 --> 00:23:42,800 Speaker 1: know JP Morgan has almost twenty billion dollars of exposure 429 00:23:43,320 --> 00:23:45,440 Speaker 1: in the Chinese economy, and that's well. I mean, it's 430 00:23:45,440 --> 00:23:47,760 Speaker 1: not unusual for a major American firm to have great 431 00:23:47,760 --> 00:23:50,280 Speaker 1: exposure in China. Rick, I guess the question is why 432 00:23:50,400 --> 00:23:53,480 Speaker 1: is everyone so afraid these are the most powerful? Because 433 00:23:53,560 --> 00:23:58,560 Speaker 1: China retaliates. China retaliates, China goes after people like these guys. 434 00:23:58,880 --> 00:24:01,040 Speaker 1: I don't think it's a vailed threat when they say, oh, 435 00:24:01,080 --> 00:24:03,199 Speaker 1: you just cut your license to operate in China. By 436 00:24:03,240 --> 00:24:06,360 Speaker 1: the way, took a really long time for prestigious group 437 00:24:06,400 --> 00:24:09,560 Speaker 1: like JP Morgan to get a license to work in China. 438 00:24:09,840 --> 00:24:13,800 Speaker 1: And and and it wouldn't surprise me. Right, people disappear, Uh, 439 00:24:13,920 --> 00:24:17,679 Speaker 1: corporate executives from China say anything wrong and they're gone. 440 00:24:17,960 --> 00:24:21,080 Speaker 1: They don't make the next board meeting. I think Jamie's 441 00:24:21,119 --> 00:24:23,520 Speaker 1: got a little bit better prospects than those guys do. 442 00:24:24,080 --> 00:24:26,679 Speaker 1: But but the reality is we see a clash of 443 00:24:26,720 --> 00:24:29,960 Speaker 1: two cultures and clash of two systems. That Chinese Communist 444 00:24:29,960 --> 00:24:34,280 Speaker 1: Party does not take dissent. That's why you don't have 445 00:24:34,320 --> 00:24:37,080 Speaker 1: Facebook in China. That's why you don't have Twitter in China. 446 00:24:37,160 --> 00:24:40,440 Speaker 1: That's why we bow is regulated by the government and 447 00:24:40,480 --> 00:24:43,119 Speaker 1: controls what goes on there. So, I mean, this is 448 00:24:43,200 --> 00:24:45,080 Speaker 1: this is a people got to get used to it. 449 00:24:45,080 --> 00:24:48,920 Speaker 1: It is communists. They are an authoritarian regime and they 450 00:24:48,960 --> 00:24:51,679 Speaker 1: don't like people saying nasty things about them, even if 451 00:24:51,680 --> 00:24:54,920 Speaker 1: they're making a joke. Well, yeah, and it certainly informs 452 00:24:55,000 --> 00:24:58,200 Speaker 1: our government's relationship with Beijing and the and the delicate 453 00:24:58,280 --> 00:25:01,439 Speaker 1: dance that President by and as having now with President she. 454 00:25:01,600 --> 00:25:05,440 Speaker 1: Can you believe that was only a week ago. Stay 455 00:25:05,440 --> 00:25:08,040 Speaker 1: with us on sound On. We've got one more turn 456 00:25:08,119 --> 00:25:10,720 Speaker 1: with Rick and Jennie as we talk about something a 457 00:25:10,720 --> 00:25:14,680 Speaker 1: little more kind and gentle Thanksgiving traditions here in Washington. 458 00:25:15,080 --> 00:25:21,239 Speaker 1: This is Bloomberg. You're listening to Bloomberg. You Sound on 459 00:25:21,720 --> 00:25:28,280 Speaker 1: with Joe Matthew on Bloomberg Radio. So President Biden woke 460 00:25:28,359 --> 00:25:32,160 Speaker 1: up this morning on Nantucket to enjoy as I read 461 00:25:32,200 --> 00:25:38,760 Speaker 1: in the playbook splendid and enforced isolation sounds kind of nice. 462 00:25:40,240 --> 00:25:42,080 Speaker 1: It seems like it'd be cold there right now. Though 463 00:25:43,080 --> 00:25:45,280 Speaker 1: it's a longtime family tradition. The Bid has been spending 464 00:25:45,280 --> 00:25:48,159 Speaker 1: Thanksgivings on Nantucket, as we have noted here on the 465 00:25:48,160 --> 00:25:50,560 Speaker 1: program for more than thirty years. They're going back this 466 00:25:50,640 --> 00:25:54,520 Speaker 1: year post COVID. This after Joe Biden pardoned the turkeys 467 00:25:55,480 --> 00:25:59,320 Speaker 1: last Friday. Another big Thanksgiving tradition for the White House. 468 00:25:59,359 --> 00:26:01,200 Speaker 1: I want to ask Rick and Genie about it our panel, 469 00:26:01,240 --> 00:26:05,360 Speaker 1: of course, because these can be opportunities for a president 470 00:26:05,440 --> 00:26:08,840 Speaker 1: to transcend politics for a moment, right, move beyond partisanship, 471 00:26:08,920 --> 00:26:13,120 Speaker 1: maybe even invoke a little bit of humor. You think Rick, 472 00:26:14,240 --> 00:26:19,119 Speaker 1: president has an opportunity on a holiday like this to 473 00:26:19,240 --> 00:26:23,280 Speaker 1: do something positive. Maybe have us all forget this business 474 00:26:23,280 --> 00:26:27,280 Speaker 1: we've been talking about. It's not an opportunity, for sure, 475 00:26:27,320 --> 00:26:30,800 Speaker 1: it's an opportunity. Uh. People around the holidays, they want 476 00:26:30,800 --> 00:26:33,560 Speaker 1: to be inspired, they want to be around family. Um, 477 00:26:33,880 --> 00:26:37,080 Speaker 1: we've been in enforced isolation for two years because of COVID. 478 00:26:37,160 --> 00:26:40,000 Speaker 1: It's nice that he thinks it's so great, But I 479 00:26:40,040 --> 00:26:43,160 Speaker 1: want to get out and see other people. But but Yeah, 480 00:26:43,240 --> 00:26:45,840 Speaker 1: it's it's people want to hear from their present during 481 00:26:45,880 --> 00:26:48,840 Speaker 1: the holiday. They want to see him, you know, being 482 00:26:48,920 --> 00:26:53,720 Speaker 1: robust and and and and everyone wishes each other uh, 483 00:26:53,800 --> 00:26:57,080 Speaker 1: happy holidays, even if they disagree with them. So this 484 00:26:57,200 --> 00:26:59,479 Speaker 1: is the time to try and create that, you know, 485 00:27:00,040 --> 00:27:02,639 Speaker 1: ridge that divide. Some presidents go to Camp David. That 486 00:27:02,760 --> 00:27:07,080 Speaker 1: was certainly the case for George W. Bush. Repeatedly Genie, Uh, 487 00:27:07,160 --> 00:27:10,760 Speaker 1: the Obama's would do something else, maybe go to Hawaii 488 00:27:10,880 --> 00:27:13,479 Speaker 1: though that was typically the Christmas trip. But there are 489 00:27:13,520 --> 00:27:16,120 Speaker 1: moments here to act like a human being instead of 490 00:27:16,160 --> 00:27:19,719 Speaker 1: the potus. There are and you know, as you know, 491 00:27:19,840 --> 00:27:22,840 Speaker 1: I live in New York, and they the president and 492 00:27:22,880 --> 00:27:25,920 Speaker 1: the vice president did just before he left to try 493 00:27:25,960 --> 00:27:29,920 Speaker 1: to do something that is important giving at the holidays. 494 00:27:29,960 --> 00:27:32,080 Speaker 1: But I will tell you that in a New York 495 00:27:32,119 --> 00:27:36,120 Speaker 1: newspaper that will go unnamed this soup kitchen they visited, 496 00:27:36,359 --> 00:27:39,800 Speaker 1: the report was this Biden gives Harris cold shoulder at 497 00:27:39,880 --> 00:27:44,160 Speaker 1: DC soup kitchen after reported tensions. That was the headline. 498 00:27:44,400 --> 00:27:49,040 Speaker 1: So maybe it's not so it's it's tough and they're trying, 499 00:27:49,119 --> 00:27:52,080 Speaker 1: but the message, you know, it is tough to get out. 500 00:27:52,160 --> 00:27:55,199 Speaker 1: And so you know, if the president wants to be isolated, 501 00:27:55,200 --> 00:27:57,200 Speaker 1: it's going to be even tougher to get that message out, 502 00:27:57,240 --> 00:28:00,080 Speaker 1: not for lack of trying, but this is how the 503 00:28:00,160 --> 00:28:03,040 Speaker 1: things are being reported in some avenues. Rick, You've spent 504 00:28:03,080 --> 00:28:05,560 Speaker 1: a lot of holidays in the nation's capital. You spent 505 00:28:05,600 --> 00:28:08,000 Speaker 1: a lot of them with Senator John McCain. Do you 506 00:28:08,119 --> 00:28:13,520 Speaker 1: have any enduring Thanksgiving memories? Well, I would say Senator 507 00:28:13,600 --> 00:28:16,760 Speaker 1: McCain had an interesting approach to holidays. He would usually 508 00:28:16,760 --> 00:28:21,000 Speaker 1: go abroad and see his troops. In fact, the last 509 00:28:21,040 --> 00:28:23,800 Speaker 1: time he UH did that was in two thousand and sixteen. 510 00:28:23,840 --> 00:28:28,080 Speaker 1: He was an Afghanistan on Thanksgiving and it was especially 511 00:28:28,960 --> 00:28:32,159 Speaker 1: I think moving for him because his son Jack was 512 00:28:32,200 --> 00:28:37,840 Speaker 1: stationed in Afghanistan at the time flying helicopters, and so UH, 513 00:28:38,160 --> 00:28:41,520 Speaker 1: one way to see your son go to Afghanistan for Thanksgiving. 514 00:28:41,560 --> 00:28:43,440 Speaker 1: But he did it routinely, and it was a way 515 00:28:43,480 --> 00:28:47,880 Speaker 1: for him to try and give comfort to the troops 516 00:28:47,880 --> 00:28:51,320 Speaker 1: who were away from their families. All around the world tonight, 517 00:28:51,360 --> 00:28:54,400 Speaker 1: we have troops away from their families on Thanksgiving, and 518 00:28:54,440 --> 00:28:59,479 Speaker 1: he felt a real desire, real motivation, UH to to 519 00:28:59,640 --> 00:29:02,760 Speaker 1: go a road, whether it was in Afghanistan or in 520 00:29:02,760 --> 00:29:06,480 Speaker 1: the Balkans or in Iraq, UH and and see our 521 00:29:06,520 --> 00:29:09,440 Speaker 1: troops and to cheer them up. And he would give 522 00:29:09,560 --> 00:29:14,320 Speaker 1: his five minute UH stand up routine and get everybody 523 00:29:14,400 --> 00:29:17,320 Speaker 1: laughing at the same jokes he gave every year. But 524 00:29:17,600 --> 00:29:19,920 Speaker 1: just the fact that he was there and UH and 525 00:29:20,040 --> 00:29:23,920 Speaker 1: supporting them for a change versus them supporting our country 526 00:29:24,480 --> 00:29:27,640 Speaker 1: was was a nice respite for them. How about November 527 00:29:27,680 --> 00:29:31,800 Speaker 1: two thousand three, Genie, President Bush, remember the surprise visit 528 00:29:31,920 --> 00:29:35,480 Speaker 1: to to the troops in Iraq. This was a big deal. 529 00:29:35,560 --> 00:29:38,080 Speaker 1: Then reporters had to silence their phones. They get on 530 00:29:38,120 --> 00:29:40,760 Speaker 1: Air Force one, all of a sudden, they're in Iraq. 531 00:29:40,960 --> 00:29:43,360 Speaker 1: He walks out the big spread, the big Turkey. The 532 00:29:43,400 --> 00:29:47,400 Speaker 1: troops are cheering. That is. That's some good politics, that 533 00:29:47,600 --> 00:29:50,120 Speaker 1: is and you know, that is something that you know, 534 00:29:50,200 --> 00:29:53,320 Speaker 1: presidents try to that sort of the moment they try 535 00:29:53,400 --> 00:29:56,280 Speaker 1: to capture and you know, who knows if we're going 536 00:29:56,320 --> 00:29:58,680 Speaker 1: to see that from President Biden at at any point, 537 00:29:58,800 --> 00:30:01,120 Speaker 1: but that is exactly why they want to capture. And 538 00:30:01,480 --> 00:30:05,000 Speaker 1: Bush did that beautifully in what would be Joe Biden's 539 00:30:05,120 --> 00:30:07,080 Speaker 1: version of that. Right, We obviously we're at the point 540 00:30:07,080 --> 00:30:11,120 Speaker 1: now following that very difficult withdrawal, deadly withdrawal from Afghanistan, 541 00:30:11,160 --> 00:30:15,160 Speaker 1: where we don't have a formal war underway, we have 542 00:30:15,200 --> 00:30:17,800 Speaker 1: a lot of troops stationed overseas. He still finishes every 543 00:30:17,840 --> 00:30:20,600 Speaker 1: speech with him saying God bless our troops. But how 544 00:30:20,640 --> 00:30:23,640 Speaker 1: could Joe Biden, whether it's now Christmas, how does he 545 00:30:23,840 --> 00:30:28,360 Speaker 1: surprise the media, surprise the talking heads of the move 546 00:30:28,440 --> 00:30:31,560 Speaker 1: like that. It's not a very fair question, But I'm 547 00:30:31,560 --> 00:30:34,200 Speaker 1: curious what you think. Yeah, I don't think he has 548 00:30:34,280 --> 00:30:37,160 Speaker 1: to surprise anybody. I think that he could put out 549 00:30:37,160 --> 00:30:40,400 Speaker 1: an address, uh, speak to the troops via the communication 550 00:30:40,520 --> 00:30:43,880 Speaker 1: channels they have. They have these great systems where you 551 00:30:43,880 --> 00:30:47,520 Speaker 1: could actually talk to them in real time. I would 552 00:30:47,560 --> 00:30:49,520 Speaker 1: hope you would do something like that, because you're right. 553 00:30:49,560 --> 00:30:52,960 Speaker 1: I mean, he he honors the service and sacrifice of 554 00:30:53,080 --> 00:30:56,160 Speaker 1: our men and women in in uniform and uh, and 555 00:30:56,200 --> 00:30:57,960 Speaker 1: I would hope that he'd use the holidays as a 556 00:30:58,000 --> 00:31:00,880 Speaker 1: way of communicating directly to them. I think people feel 557 00:31:01,000 --> 00:31:03,760 Speaker 1: comfort in knowing that the president has that as a 558 00:31:03,840 --> 00:31:08,080 Speaker 1: very high priority. Genie, does he stay quiet during this trip? 559 00:31:08,160 --> 00:31:09,520 Speaker 1: Is that the best thing for Joe Biden to do 560 00:31:09,640 --> 00:31:12,160 Speaker 1: right now? He may want a little bit of quiet, 561 00:31:12,240 --> 00:31:14,720 Speaker 1: but you know, I think to your earlier point, there's 562 00:31:14,840 --> 00:31:17,920 Speaker 1: other you know, the troops. Certainly he could give an address, 563 00:31:17,960 --> 00:31:20,360 Speaker 1: but let's not forget we're we're in the midst of 564 00:31:20,400 --> 00:31:23,520 Speaker 1: a pandemic. Hopefully it's ending. But I thought, you know, 565 00:31:24,120 --> 00:31:27,000 Speaker 1: some kind of honoring of the people whose lives have 566 00:31:27,120 --> 00:31:31,080 Speaker 1: been lost. I mean, the the sort of devastation that 567 00:31:31,200 --> 00:31:34,960 Speaker 1: he has been so empathetic about. You know, that's also 568 00:31:35,080 --> 00:31:38,240 Speaker 1: something that he can address during these holiday seasons because 569 00:31:38,240 --> 00:31:41,040 Speaker 1: a lot of people are living right now without their 570 00:31:41,080 --> 00:31:44,160 Speaker 1: loved ones as a result of the pandemic, and Biden 571 00:31:44,240 --> 00:31:49,320 Speaker 1: knows that better than anybody. Pretty fascinating stuff. I hope 572 00:31:49,320 --> 00:31:51,000 Speaker 1: both of you guys have a great holiday. I won't 573 00:31:51,040 --> 00:31:53,000 Speaker 1: bother you with with what your plans are, but I 574 00:31:53,040 --> 00:31:55,680 Speaker 1: hope you're with family. I hope you're with friends, and 575 00:31:55,720 --> 00:31:57,840 Speaker 1: that you have a great meal and a celebration ahead. 576 00:31:57,840 --> 00:32:00,160 Speaker 1: At least there will be that. I will say, be 577 00:32:00,200 --> 00:32:04,200 Speaker 1: thanksgiving to Rick and Genie. Same to you, Joe, Thank 578 00:32:04,240 --> 00:32:07,560 Speaker 1: you for that. I look forward to taking a breather here. 579 00:32:07,600 --> 00:32:11,000 Speaker 1: If these guys are great, right, we have great times 580 00:32:11,120 --> 00:32:13,480 Speaker 1: with Rick and Jennie. Understanding what's going on, we can 581 00:32:13,480 --> 00:32:16,120 Speaker 1: talk about things on this program that you couldn't talk 582 00:32:16,160 --> 00:32:19,800 Speaker 1: about at the Thanksgiving table, And to that, I will 583 00:32:19,800 --> 00:32:24,480 Speaker 1: warn you be careful what you say tomorrow. You could 584 00:32:24,480 --> 00:32:28,600 Speaker 1: be one of those statistics. Honey, grab the coats, because 585 00:32:28,600 --> 00:32:30,800 Speaker 1: we're still not beyond that. Now. We're big on holiday 586 00:32:30,800 --> 00:32:34,320 Speaker 1: traditions around here, on sound on before we say farewell 587 00:32:34,360 --> 00:32:37,400 Speaker 1: and happy Turkey. We're big on White House history here. 588 00:32:37,600 --> 00:32:41,120 Speaker 1: There's just something about Thanksgiving at Pennsylvania Avenue that puts 589 00:32:41,120 --> 00:32:43,880 Speaker 1: a smile on our faces. And I think that's the point. 590 00:32:43,920 --> 00:32:47,440 Speaker 1: At least that's become the point. As you'll hear in 591 00:32:47,480 --> 00:32:52,520 Speaker 1: our closing piece here for our producer Christine Barata and 592 00:32:52,600 --> 00:32:57,520 Speaker 1: our celebrity booker Matt Shirley, we are thankful for a 593 00:32:57,520 --> 00:32:59,880 Speaker 1: lot of things around here. I am, including our friend 594 00:33:00,040 --> 00:33:02,600 Speaker 1: Arlie Pellett on the market updates. I'll meet you back 595 00:33:02,640 --> 00:33:06,760 Speaker 1: here on Monday. I'm Joe Matthew. This is Bloomberg, you 596 00:33:06,800 --> 00:33:11,320 Speaker 1: know as a University of Delaware man, I'm partially Blue Hens. 597 00:33:11,360 --> 00:33:23,680 Speaker 1: Today we're gonna talk turkey. Thank you. I never promised you. 598 00:33:25,200 --> 00:33:29,600 Speaker 1: This turkey represents America's forty five million turkeys who will 599 00:33:29,640 --> 00:33:36,120 Speaker 1: begin making their irreplaceable contribution to our Thanksgiving celebration. So 600 00:33:36,280 --> 00:33:38,640 Speaker 1: take it easy, turkey. We're just here to serve you. 601 00:33:38,880 --> 00:33:42,800 Speaker 1: Our guest of honor looks a little nervous. Nobody's tolding 602 00:33:42,840 --> 00:33:44,280 Speaker 1: me yet that I'm going to give him a pardon. 603 00:33:47,240 --> 00:33:49,600 Speaker 1: I know some folks think this tradition is a little silly. 604 00:33:50,360 --> 00:33:54,280 Speaker 1: I do not disagree. I've got to listen to my critics, 605 00:33:54,640 --> 00:33:58,200 Speaker 1: UH say, I'm often too soft on turkeys. Now, I 606 00:33:58,200 --> 00:34:02,120 Speaker 1: am pleased to announce that today's lucky bird and guests 607 00:34:02,120 --> 00:34:08,600 Speaker 1: Savanna is named Peas, along with his alternate named Carrots. 608 00:34:08,880 --> 00:34:12,400 Speaker 1: The children will understand that who better help celebrate the 609 00:34:12,400 --> 00:34:15,560 Speaker 1: holiday in which they break the bread for two turkeys 610 00:34:15,680 --> 00:34:19,600 Speaker 1: name peanut, Butter and Jelly. This turkey is going to 611 00:34:19,719 --> 00:34:24,480 Speaker 1: be called Flyer, and the backup birds name is Friar. 612 00:34:24,800 --> 00:34:29,960 Speaker 1: This year's lucky bird corn, and just in case we 613 00:34:30,040 --> 00:34:37,880 Speaker 1: needed him copy, this year's national turkey goes by the 614 00:34:37,960 --> 00:34:43,920 Speaker 1: name of Apple, and his feathered understudy is appropriately named Cider. 615 00:34:44,239 --> 00:34:48,160 Speaker 1: Even though Peas and Carrots have received a presidential pardon, 616 00:34:48,960 --> 00:34:52,719 Speaker 1: I have warned them that House Democrats are likely to 617 00:34:52,880 --> 00:35:00,000 Speaker 1: issue them both subpoenas. Totis the turkey of the United States. 618 00:35:00,360 --> 00:35:05,120 Speaker 1: Gud folks, Turkey is infrastructure, Pelich, Bruter and Driller gonna 619 00:35:05,120 --> 00:35:07,760 Speaker 1: help build Black the butter ball as we will belong. 620 00:35:16,560 --> 00:35:19,880 Speaker 1: Thanksgiving is a special day for turkeys, I guess, probably 621 00:35:19,920 --> 00:35:21,399 Speaker 1: for the most part, not a very good one when 622 00:35:21,440 --> 00:35:24,040 Speaker 1: you think about it. The first turkey to dodge the 623 00:35:24,040 --> 00:35:29,160 Speaker 1: White House dinner table received unofficial clemency when President Abraham 624 00:35:29,239 --> 00:35:34,000 Speaker 1: Lincoln's son Tad begged his father to spare his new friend. 625 00:35:34,840 --> 00:35:38,160 Speaker 1: His son, Tad grew so attached to the turkey that 626 00:35:38,200 --> 00:35:40,920 Speaker 1: he named him Jack, and President Lincoln had no choice 627 00:35:41,360 --> 00:35:43,919 Speaker 1: but to give Jack the full run of the White House. 628 00:35:45,120 --> 00:35:48,880 Speaker 1: Jack was here actually for some monumental events. On election 629 00:35:48,960 --> 00:35:52,320 Speaker 1: Day in eighteen sixty four, when Mr Lincoln was running 630 00:35:52,320 --> 00:35:55,640 Speaker 1: for re election, a special polling place was actually set 631 00:35:55,719 --> 00:35:57,479 Speaker 1: up right here on the grounds of the White House 632 00:35:57,960 --> 00:36:01,600 Speaker 1: so that the soldiers could vote well. Jack the turkey 633 00:36:01,640 --> 00:36:03,680 Speaker 1: actually strutted in front of some of the would be 634 00:36:03,760 --> 00:36:08,000 Speaker 1: voters the broken line. Lincoln asked his son, why is 635 00:36:08,000 --> 00:36:11,640 Speaker 1: your turkey at the polls? Does he vote without hesitation? 636 00:36:11,719 --> 00:36:17,120 Speaker 1: Tad said he's not old enough yet. Tomorrow, forty five 637 00:36:17,239 --> 00:36:21,040 Speaker 1: million turkeys will make the ultimate sacrifice for America's feast, 638 00:36:21,800 --> 00:36:24,920 Speaker 1: but not this one. I'm granting this turkey a permanent 639 00:36:24,960 --> 00:36:27,759 Speaker 1: reprieve after many years and the coop. He's on his 640 00:36:27,840 --> 00:36:30,680 Speaker 1: way to a farm in Virginia to bask in the sun, 641 00:36:30,880 --> 00:36:35,120 Speaker 1: collect his hard earned pension, enjoy his golden years. And 642 00:36:35,960 --> 00:36:39,520 Speaker 1: that's one less turkey in Washington. Happy Thanksgiving.