WEBVTT - Kevin Warsh Makes His Case for Fed Chair

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

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<v Speaker 2>Name one aspect of President Trump's economic agenda with which

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<v Speaker 2>you disagree.

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<v Speaker 3>Well, Senator, the Federal Reserve in recent years has wandered

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<v Speaker 3>outside of its remit, wandered into other something Donald Trump

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<v Speaker 3>on confirmed.

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<v Speaker 2>Just one.

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<v Speaker 4>On Tuesday, Kevin Warrish, President Trump's nominee to be the

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<v Speaker 4>next chair of the Federal Reserve, spoke publicly for the

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<v Speaker 4>first time since being tapped for one of the most

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<v Speaker 4>powerful jobs in the world back in January. He faced

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<v Speaker 4>questions from Senator Elizabeth Warren and other members of the

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<v Speaker 4>Senate Banking Committee in a nomination hearing that explored everything

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<v Speaker 4>from his personal finances to his views on economic policymaking.

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<v Speaker 5>It looks different on TV than it does in person.

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<v Speaker 4>Bloomberg International Economics and Policy correspondent Mike McKee was in

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<v Speaker 4>the room. He says one topic loomed largest the Fed's

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<v Speaker 4>independence from outside political pressure and from the President himself

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<v Speaker 4>or from his.

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<v Speaker 2>Name clear that he does not want an independent FED.

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<v Speaker 2>In fact, he has said, and I quote, anybody that

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<v Speaker 2>disagrees with me will never be FED chairman. And he's

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<v Speaker 2>made clear that you are his sock puppets saying last

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<v Speaker 2>week that interest rates will drop quote when Kevin gets in.

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<v Speaker 5>Yeah, changing a FED chair always leaves open the question

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<v Speaker 5>of where does the FED go from here? And at

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<v Speaker 5>a time when we have a lot of fraught economics

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<v Speaker 5>questions out there, shall we say the war tariffs, the

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<v Speaker 5>overall impact of the President's economic policies. There's a lot

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<v Speaker 5>riding on this.

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<v Speaker 4>With a Republican controlled Senate, it's not so much a

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<v Speaker 4>question of if Kevin Warrish will be confirmed as FED chair,

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<v Speaker 4>but when, and there are still some hurdles in front

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<v Speaker 4>of a vote on the Senate floor. Tuesday's hearing was

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<v Speaker 4>a kind of litmus test for Walsh in the public

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<v Speaker 4>eye as a Trump nominee, and the committee members wanted

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<v Speaker 4>to know from the nominee himself, what would a warsh

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<v Speaker 4>FED look like and would it be able to hold

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<v Speaker 4>its own as an independent entity as Trump puts pressure

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<v Speaker 4>on the FED to cut interest rates?

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<v Speaker 3>Are you going to be the president's human soccer puppet center?

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<v Speaker 3>Absolutely not.

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<v Speaker 4>I'm David Gera and this is the big take from

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<v Speaker 4>Bloomberg News Today. On the show, Kevin Walsh on Capitol Hill,

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<v Speaker 4>what his Senate nomination hearing revealed about his ambitions to

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<v Speaker 4>change the FED and his willingness to stand up to

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<v Speaker 4>the president. Give us a little refresher, if few would

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<v Speaker 4>mike of who Kevin Walsh is. He's somebody who's been

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<v Speaker 4>kind of in and out of government over the last

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<v Speaker 4>few decades. What should we know about him?

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<v Speaker 5>Well, in and out of government is basically the most

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<v Speaker 5>important thing, besides the fact that he comes from the

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<v Speaker 5>financial services industry. Then he went to the White House

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<v Speaker 5>as a member of the National Economic Council before being

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<v Speaker 5>nominated to the Federal Reserve by George W. Bush. And

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<v Speaker 5>he then served until twenty eleven basically as Ben Bernanke's

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<v Speaker 5>right hand man during the crisis. Because of his ties

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<v Speaker 5>to Wall Street, he left and he went to work

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<v Speaker 5>for stan Druck and Miller at Duquane Capital Management and

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<v Speaker 5>has been working for him and also teaching at Stanford

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<v Speaker 5>for the last few years until he was nominated now

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<v Speaker 5>as chair again. So he has a lot of experience

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<v Speaker 5>in the financial world. He also knows a lot of

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<v Speaker 5>people in the tech world because he went to Stanford

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<v Speaker 5>and he is friends with a lot of the people

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<v Speaker 5>that you're talking about every day with Ai and with

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<v Speaker 5>the Silicon Valley world.

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<v Speaker 4>I'm curious sort of what his reputation is more broadly

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<v Speaker 4>among FED policymakers past and present.

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<v Speaker 5>Well, when he was on the FED, he was very

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<v Speaker 5>much a hawk, and he was the one person who

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<v Speaker 5>was advocating for higher interest rates at a time when

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<v Speaker 5>the FED was cutting rates to zero because the economy

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<v Speaker 5>was falling apart in the Great Financial Crisis, and so

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<v Speaker 5>he stood out for that. Once Donald Trump came to

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<v Speaker 5>office in twenty and seventeen and was looking for a

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<v Speaker 5>new FED chair, who ultimately was Jay Powell reappointed. Warsh

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<v Speaker 5>was a candidate, and at that time he started to

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<v Speaker 5>adopt the feathers of a dove, saying that you needed

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<v Speaker 5>to maybe stimulate the economy a little bit more. And

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<v Speaker 5>he became certainly more known for that when COVID hit

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<v Speaker 5>and the FED was cutting rates, and he was in

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<v Speaker 5>favor of that. Now it seems he's sort of in

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<v Speaker 5>the middle. When you listened to him yesterday at the

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<v Speaker 5>Senate Banking Committee hearing, he was talking about the fact

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<v Speaker 5>that he didn't think tariffs were inflationary, which on the

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<v Speaker 5>one hand makes Donald Trump happy.

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<v Speaker 1>Core PCE inflation has been running about three percent, a

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<v Speaker 1>full point above that FED target.

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<v Speaker 3>Correct.

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<v Speaker 1>Yes, and so some Federal Reserve officials have said that

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<v Speaker 1>this excess is due to tariffs. Do you agree with.

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<v Speaker 3>That center, I don't if I can make two points,

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<v Speaker 3>much as we discussed in your office, I think the

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<v Speaker 3>data that's being used to judge inflation is quite imperfect data.

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<v Speaker 5>But on the other hand, it's sort of at odds

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<v Speaker 5>with the way the Fed's looking at it that they

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<v Speaker 5>are an inflation danger but a one off, and so

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<v Speaker 5>the FED can look through inflation and maybe at some

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<v Speaker 5>point soon get back to cutting rates if they're not inflationary. Yes,

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<v Speaker 5>Swartz says, then we've got a bigger inflation problem than

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<v Speaker 5>the FED has been saying.

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<v Speaker 4>So a big question at this hearing was can Kevin

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<v Speaker 4>Warsh be fully independent from the President? And the President

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<v Speaker 4>kicked off the day right before the hearing, he was

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<v Speaker 4>on CNBC indicating he would like Kevin Worsh to lower

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<v Speaker 4>rates when he gets into the job. How did the

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<v Speaker 4>senators tackle that question? How front of mine was that

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<v Speaker 4>for them?

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<v Speaker 5>It was a front of mine, certainly to all the Democrats,

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<v Speaker 5>but Senator Kennedy of Louisiana, who is a Republican sort

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<v Speaker 5>of summed it up in what was clearly a pre

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<v Speaker 5>planned way to try to get some headlines, asking him

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<v Speaker 5>if he would be a sock puppet for the president,

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<v Speaker 5>and of course Warsh said, of course, I will not

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<v Speaker 5>be a stock puppet. And that's the line that sticks

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<v Speaker 5>out to everybody. But I think the more important line

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<v Speaker 5>was when Elizabeth Warren asked him who won the twenty

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<v Speaker 5>twenty presidential election? Did Donald Trump lose that election?

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<v Speaker 2>Mister Worsh, did Donald Trump lose the twenty twenty election?

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<v Speaker 3>We try to keep politics. If I'm confirmed out of

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<v Speaker 3>the federal.

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<v Speaker 2>I'm just asking you a factual question. I need to know.

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<v Speaker 2>I need to measure your independence and your courage.

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<v Speaker 3>Senator, I believe that this body certified that election many

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<v Speaker 3>years ago.

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<v Speaker 2>That's not the question I'm asking. I'm asking did Donald

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<v Speaker 2>Trump lose in twenty twenty?

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<v Speaker 3>Man, I'm suggesting you.

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<v Speaker 5>And Worsh refused to say. And it does show that

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<v Speaker 5>there is still a weight, a Trump weight on what

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<v Speaker 5>Worsh can say or is willing to say. But the

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<v Speaker 5>takeaway is that and the idea that there was anything

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<v Speaker 5>corrupt or anything that was wrong with Orsh other than

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<v Speaker 5>bending to the political wins was about what you got

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<v Speaker 5>out of that.

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<v Speaker 4>Kevin Walsh has been a proponent of fundamentally changing the

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<v Speaker 4>way the federal serve is structured what it does, but

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<v Speaker 4>the FED cheer does.

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<v Speaker 3>Status quo practices and policies are especially harmful when the

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<v Speaker 3>world is changing this fast.

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<v Speaker 4>What was your sense of how receptive members of the

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<v Speaker 4>committee are to that reform agenda that Kevin Walsh, yes,

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<v Speaker 4>talked about during the hearing, but it's talked about over

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<v Speaker 4>the course of his long career.

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<v Speaker 5>Well, I think that it depends on the political party,

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<v Speaker 5>and there isn't a lot of depth on either side.

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<v Speaker 5>Walsh has made it clear that over the years that

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<v Speaker 5>he thinks the FED has straight out of its lane,

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<v Speaker 5>as he put it, and gotten into fiscal or social

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<v Speaker 5>areas that don't fall under the Fed's remit, like climate change.

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<v Speaker 5>What may be more interesting to the people in the markets.

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<v Speaker 5>And I don't know how much depth. You never know

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<v Speaker 5>quite what the senators understand about monetary policy. But the

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<v Speaker 5>idea that he would maybe want to change the communications

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<v Speaker 5>strategy and get rid of the dot plot, which he

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<v Speaker 5>suggested is misleading, and maybe change the Fed's inflation index.

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<v Speaker 5>Those things could turn out to be the most important

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<v Speaker 5>things he wants to do, along with shrinking the balance sheet,

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<v Speaker 5>and those didn't get as much questioning. The balance sheet

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<v Speaker 5>didn't get much at all, because perhaps the senators aren't

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<v Speaker 5>up on that or as interested in the technical details

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<v Speaker 5>of being on the FED.

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<v Speaker 4>If Kevin Warrish were to be confirmed, he would be

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<v Speaker 4>one of the wealthiest FED chairs in history. He's married

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<v Speaker 4>to the granddaughter of Esta Lauder. She's a billionaire. He

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<v Speaker 4>disclosed assets worth more than one hundred million dollars, and

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<v Speaker 4>this is something that came out the course of the

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<v Speaker 4>hearing as well. Mike, help me understand what more senators

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<v Speaker 4>want to know about Warsh's financial size.

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<v Speaker 5>This is another line of questioning that Elizabeth Warren really

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<v Speaker 5>pushed was what have you invested in? His financial disclosure

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<v Speaker 5>forms probably understate much of his holdings, and they basically

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<v Speaker 5>just tell you in broad strokes what they've invested in.

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<v Speaker 5>He said he had an agreement with the Office of

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<v Speaker 5>Government Ethics to sell off his assets to the extent

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<v Speaker 5>that he can before he takes office, which would be

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<v Speaker 5>a herculean task perhaps, but he said he's going to

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<v Speaker 5>do that. But he would not disclose what those investments

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<v Speaker 5>necessarily were, and he said the OGE said, that's fine,

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<v Speaker 5>you don't have to, and so he's stonewelled on that question.

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<v Speaker 5>But obviously the undertone of the question is who else

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<v Speaker 5>might you beholden to or who else might you be

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<v Speaker 5>trying to help through monetary policy? We should mention as

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<v Speaker 5>you did. His wife is an heir to the Stay

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<v Speaker 5>Latter fortune, and he has promised to recuse himself from

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<v Speaker 5>anything that would, in theory have an impact on Stay Latter,

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<v Speaker 5>although it's kind of hard to know how that works,

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<v Speaker 5>given that even lower interest rates would help any company,

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<v Speaker 5>including Stay Lauder.

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<v Speaker 4>Senator Tom Tillis, a Republican member of the Banking Committee,

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<v Speaker 4>has threatened not to vote for Kevin Warsh if the

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<v Speaker 4>Trump administration doesn't drop its investigation into current church Jerome

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<v Speaker 4>Powell over renovations to the Federal Reserves headquarters in Washington.

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<v Speaker 4>Tilli said he had just one actual objection to Warsh himself.

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<v Speaker 3>Let's get rid of this investigation so I can support

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<v Speaker 3>your confirmation. Mister Walsh. The only thing I've found the

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<v Speaker 3>least bit odd about you is you've never watched an

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<v Speaker 3>episode of.

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<v Speaker 4>Seinfeld Seinfeld acide. Is Tillis's stance here a threat to

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<v Speaker 4>Warsh his confirmation.

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<v Speaker 5>It's a continued threat to the when part of his confirmation.

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<v Speaker 5>It's not a threat to the will he be confirmed.

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<v Speaker 5>He has the votes. Republicans are solidly on his side.

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<v Speaker 5>But he used his entire time to rail against the

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<v Speaker 5>investigation that the administration is conducting into J. Powell and

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<v Speaker 5>the FED over the building renovations. And he's very dug

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<v Speaker 5>in on the idea that unless that is dropped, he's

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<v Speaker 5>not going to vote for Kevin Walsh. They're about nine

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<v Speaker 5>days left, nine legislative days left to vote him out

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<v Speaker 5>of committee and then on the floor confirm him. So

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<v Speaker 5>there's a growing chance that he won't be confirmed because

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<v Speaker 5>of Senator Tillis's opposition in time to take over right

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<v Speaker 5>when J. Powell's term is up, which is on May fifteenth.

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<v Speaker 4>So what would happen if Warsh is not confirmed in time?

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<v Speaker 4>And what signals his President Trump send about what he

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<v Speaker 4>wants his FED cheer nominee to do. That's next. Kevin

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<v Speaker 4>Walsh would face a Republican controlled Senate if his nomination

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<v Speaker 4>moves from committee to a floor vote. But there's an

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<v Speaker 4>ongoing stalemate. GOP Senator Tom Tillis of North Carolina says

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<v Speaker 4>he'd refuse to vote for Walsh or any FED nominee

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<v Speaker 4>until the Trump administration drops a Justice Department investigation into

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<v Speaker 4>renovations of the Fed's headquarters in Washington. Tillis holds a

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<v Speaker 4>designing vote on the Senate Banking Committee and said he

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<v Speaker 4>would be prepared to support Warsh if the probe is dropped.

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<v Speaker 4>I asked Bloomberg's Mike McKee about how that could play out.

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<v Speaker 5>Well, it's not clear that it would go forward once

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<v Speaker 5>Worsh is confirmed, because that assumes that Senator Tillis is

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<v Speaker 5>happy with the idea of the investigation being dropped. And

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<v Speaker 5>Jay Powell says he's not going to leave the FED

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<v Speaker 5>unless the investigation is dropped with prejudice, which is the

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<v Speaker 5>legal term for you can't file it again. And so

0:12:54.000 --> 0:12:57.040
<v Speaker 5>I'm not sure that Worsh will really inherit this issue.

0:12:57.040 --> 0:13:00.160
<v Speaker 5>He'll inherit the buildings. But you have to realize the

0:13:00.200 --> 0:13:04.719
<v Speaker 5>President is vastly exaggerating the over cost overruns of this,

0:13:05.040 --> 0:13:07.719
<v Speaker 5>saying four billion dollars are over The cost overrun is

0:13:07.760 --> 0:13:11.080
<v Speaker 5>about six hundred million at this point, which for Washington,

0:13:11.120 --> 0:13:14.000
<v Speaker 5>for buildings these days and given the age of those buildings,

0:13:14.240 --> 0:13:18.199
<v Speaker 5>is not completely out of line. But there isn't a

0:13:18.280 --> 0:13:21.439
<v Speaker 5>whole lot of evidence that there is anything there. So

0:13:21.960 --> 0:13:24.840
<v Speaker 5>the first question is why doesn't the President just called

0:13:24.920 --> 0:13:28.600
<v Speaker 5>Janine Piro, the district attorney, the US attorney in Washington,

0:13:28.679 --> 0:13:31.920
<v Speaker 5>and say drop the case. I want Kevin Warsh in there.

0:13:32.320 --> 0:13:36.520
<v Speaker 5>And the other is a possible compromise where maybe the

0:13:36.559 --> 0:13:41.120
<v Speaker 5>Senate Banking Committee conducts its own investigation that's been floated

0:13:41.200 --> 0:13:44.920
<v Speaker 5>by some Senator Tillis said yesterday, maybe that's an idea.

0:13:45.280 --> 0:13:48.719
<v Speaker 5>But the President seems dug in on this, which is

0:13:49.480 --> 0:13:52.400
<v Speaker 5>confuses everybody because it doesn't get him what he wants,

0:13:52.440 --> 0:13:54.760
<v Speaker 5>which is j. Powell out of the chairs job.

0:13:55.240 --> 0:13:57.360
<v Speaker 4>Mike, You've been following over the last few years, the

0:13:57.360 --> 0:14:00.920
<v Speaker 4>President's antipathy toward the current chair of the Federal Reserve

0:14:00.960 --> 0:14:03.160
<v Speaker 4>and the attacks that he's made on the Fed's independence,

0:14:03.800 --> 0:14:05.200
<v Speaker 4>and I'm curious if I could ask you maybe to

0:14:05.200 --> 0:14:08.360
<v Speaker 4>step back and explain to what the actual effect of

0:14:08.400 --> 0:14:11.040
<v Speaker 4>that has been on the institution. How is the President

0:14:11.440 --> 0:14:13.640
<v Speaker 4>openly seeking to oust the head of the Federal Reserve

0:14:13.840 --> 0:14:18.040
<v Speaker 4>affected the willingness of say, other governors other policymakers to

0:14:18.120 --> 0:14:18.920
<v Speaker 4>break with the president.

0:14:19.320 --> 0:14:21.560
<v Speaker 5>Well, you have to take Governor Stephen Myron out of him,

0:14:21.560 --> 0:14:24.680
<v Speaker 5>because he was appointed by the president basically to uphold

0:14:24.680 --> 0:14:28.480
<v Speaker 5>the president's views. I've talked to Steven Myron a lot,

0:14:28.560 --> 0:14:30.800
<v Speaker 5>and I think he really believes those views, So it's

0:14:30.880 --> 0:14:34.400
<v Speaker 5>not that he's going against his own beliefs. I think

0:14:34.480 --> 0:14:38.320
<v Speaker 5>the rest of the FED has not been affected at

0:14:38.320 --> 0:14:40.720
<v Speaker 5>all in terms of doing their job. But when you

0:14:40.720 --> 0:14:43.040
<v Speaker 5>talk to people of the FED, they're certainly weary of it.

0:14:43.080 --> 0:14:46.720
<v Speaker 5>They're tired of being the punching bag. Kevin Warsh was

0:14:46.800 --> 0:14:49.720
<v Speaker 5>talking about how the FED talks too much and is

0:14:49.720 --> 0:14:52.400
<v Speaker 5>out there too much, and too many people rely on

0:14:52.440 --> 0:14:56.240
<v Speaker 5>it and it's become this all purpose safety valve for

0:14:56.280 --> 0:14:59.080
<v Speaker 5>the economy. Well, they can't get away from that because

0:14:59.160 --> 0:15:02.640
<v Speaker 5>they keep getting pushed into the spotlight by things the

0:15:02.640 --> 0:15:05.920
<v Speaker 5>President says. It certainly hasn't affected Jay Powell other than

0:15:06.240 --> 0:15:09.840
<v Speaker 5>the weight of being a punching bag all the time. Now,

0:15:09.880 --> 0:15:12.320
<v Speaker 5>the question is Kevin worsh is going to get that

0:15:12.480 --> 0:15:16.040
<v Speaker 5>if he doesn't do what the President wants, And how

0:15:16.040 --> 0:15:19.640
<v Speaker 5>would that affect Walsh. I suspect he'll get a little

0:15:19.640 --> 0:15:21.680
<v Speaker 5>bit of a pass from the President, but he's not

0:15:21.720 --> 0:15:23.800
<v Speaker 5>gonna be happy if he doesn't get lower interest rates

0:15:23.880 --> 0:15:25.560
<v Speaker 5>no matter who the chair is.

0:15:25.760 --> 0:15:27.920
<v Speaker 4>Mike, I want to turn nowt to what's next for

0:15:28.280 --> 0:15:30.520
<v Speaker 4>the outgoing FED chair For Jerome Powell, his term is

0:15:30.600 --> 0:15:33.200
<v Speaker 4>chair scheduled to end on May the fifteenth. He said

0:15:33.200 --> 0:15:35.960
<v Speaker 4>he'll stay in the job if Kevin Walsh isn't confirmed

0:15:35.960 --> 0:15:38.680
<v Speaker 4>by then. He could stay on the board as a

0:15:38.680 --> 0:15:41.680
<v Speaker 4>FED governor till January of twenty twenty eight. Were he

0:15:41.800 --> 0:15:43.960
<v Speaker 4>to do that, what kind of influence would he have

0:15:44.160 --> 0:15:45.800
<v Speaker 4>at the FED as a governor. Has he given any

0:15:45.800 --> 0:15:48.040
<v Speaker 4>indications how he would operate from that position.

0:15:48.280 --> 0:15:50.800
<v Speaker 5>He hasn't. It's only been recently that he's talked about

0:15:50.880 --> 0:15:53.320
<v Speaker 5>staying on. It was at the last press conference when

0:15:53.360 --> 0:15:56.040
<v Speaker 5>he said he would remain as the chair pro tem

0:15:56.440 --> 0:15:59.960
<v Speaker 5>until Warsh were confirmed and that he would not even

0:16:00.000 --> 0:16:05.400
<v Speaker 5>consider leaving the board until the investigation is dropped. It's

0:16:05.400 --> 0:16:08.320
<v Speaker 5>been traditioned that FED chairs, even if their term as

0:16:08.320 --> 0:16:12.600
<v Speaker 5>governors up, resign when a new chairman comes in. But

0:16:12.960 --> 0:16:16.280
<v Speaker 5>if he wants to stay on, it would be an

0:16:16.280 --> 0:16:22.720
<v Speaker 5>interesting situation because the FED as it's now constituted is

0:16:22.880 --> 0:16:25.960
<v Speaker 5>basically a Powell Fed. People who've been working with him

0:16:26.040 --> 0:16:28.480
<v Speaker 5>for a very long time and they all respect him,

0:16:28.480 --> 0:16:31.600
<v Speaker 5>and they all think that what he says and his

0:16:31.680 --> 0:16:37.160
<v Speaker 5>ability to get consensus is very strong. So Wall Street

0:16:37.200 --> 0:16:39.960
<v Speaker 5>will be saying, well, who's really running the FED? If

0:16:40.000 --> 0:16:44.040
<v Speaker 5>that's the case. Powell says he will make his decision

0:16:44.080 --> 0:16:47.160
<v Speaker 5>based on what's best for the Institution and the United

0:16:47.200 --> 0:16:50.680
<v Speaker 5>States rather than for himself. So if he thinks that

0:16:50.760 --> 0:16:54.400
<v Speaker 5>Kevin worsh or the President was trying to assert undo

0:16:54.600 --> 0:16:57.120
<v Speaker 5>pressure on the FED, maybe he might stay even if

0:16:57.160 --> 0:16:59.720
<v Speaker 5>the investigation is dropped. So we're not really clear on

0:17:00.080 --> 0:17:01.520
<v Speaker 5>what's going to happen with Powell.

0:17:02.480 --> 0:17:04.600
<v Speaker 4>The President has once again raised the specter of trying

0:17:04.640 --> 0:17:08.280
<v Speaker 4>to fire J. Powell. IFEE were to stick around past

0:17:08.320 --> 0:17:10.800
<v Speaker 4>that May fifteenth deadline, You're not a lawyer. I'm not

0:17:10.840 --> 0:17:13.280
<v Speaker 4>a lawyer. But what legal grounds does he have to

0:17:13.640 --> 0:17:15.240
<v Speaker 4>do that? How hard fought would that be?

0:17:15.920 --> 0:17:18.239
<v Speaker 5>I didn't even stay at a holiday and express last night,

0:17:18.280 --> 0:17:21.600
<v Speaker 5>so I have no legal qualifications. It would be very

0:17:21.680 --> 0:17:25.000
<v Speaker 5>hard though, because the Federal Reserve Act says you could

0:17:25.040 --> 0:17:28.200
<v Speaker 5>only fire our governor for cause. Now the possible cause

0:17:28.560 --> 0:17:31.880
<v Speaker 5>is this investigation. But remember there's no charges here. There's

0:17:31.960 --> 0:17:38.040
<v Speaker 5>only a cost overrun and some thoughts by the president,

0:17:38.160 --> 0:17:43.679
<v Speaker 5>some innuendo that maybe Powell profited by this. So unless

0:17:43.720 --> 0:17:45.720
<v Speaker 5>there's something like that, it's going to be harder to do.

0:17:45.840 --> 0:17:48.680
<v Speaker 5>Now we're all waiting on the Lisa Cook case, and

0:17:48.880 --> 0:17:52.760
<v Speaker 5>we're all waiting to see if she is indeed allowed

0:17:52.800 --> 0:17:55.520
<v Speaker 5>to stay on the FED. If the Supreme Court says

0:17:55.560 --> 0:17:58.639
<v Speaker 5>that she can, that undercuts the president's ability to fire

0:17:58.680 --> 0:18:02.280
<v Speaker 5>somebody based on innu window because there's no charge against

0:18:02.320 --> 0:18:05.520
<v Speaker 5>her either. So it's going to be very hard for

0:18:05.560 --> 0:18:08.320
<v Speaker 5>the president to do that. He's got a better chance

0:18:08.520 --> 0:18:12.080
<v Speaker 5>of maybe making nice to j. Powell and getting him

0:18:12.080 --> 0:18:15.600
<v Speaker 5>to resign than he would with firing him or attempting

0:18:15.640 --> 0:18:16.040
<v Speaker 5>to do so.

0:18:23.080 --> 0:18:25.520
<v Speaker 4>This is the Big Take from Bloomberg News. I'm David Gerra.

0:18:25.840 --> 0:18:28.400
<v Speaker 4>To get more from the Big Take and unlimited access

0:18:28.440 --> 0:18:31.280
<v Speaker 4>to all of Bloomberg dot com, subscribe today at the

0:18:31.320 --> 0:18:35.720
<v Speaker 4>Bloomberg dot Com slash podcast offer. Thanks for listening. We'll

0:18:35.760 --> 0:18:36.440
<v Speaker 4>be back tomorrow.