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Speaker 1: My from our nation's capital. This is Bloomberg sound On

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Speaker 1: talking about a huge issue here is investment in marginalized communities.

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Speaker 1: They want to deconstructive package and cherry pick what they

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Speaker 1: like what they don't like. China is surgeon powered with

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Speaker 1: major investments. Bloomberg sound On, the insiders, the influencers, the insides.

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Speaker 1: Biden has promised again and again that he will unite

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Speaker 1: the country. Who do you think Biden has to watch

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Speaker 1: in terms of moderate defectors infort The structure has always

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Speaker 1: been by part of the Bloomberg sound On on Bloomberg Radio.

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Speaker 1: I'm Jack Fitzpatrick. I'm here with Emily Wilkins. We've got

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Speaker 1: Bloomberg Politics contributor Rick Davis with us today and we're

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Speaker 1: going to get a call from Ali z a d

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Speaker 1: Deputy National Climate Advisor at the White House. We're gonna

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Speaker 1: have to talk today about the Israel Palestine news on

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Speaker 1: a ceasefire that came out this afternoon. Dr Fauci Anthony Faucci,

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Speaker 1: the premier coronavirus adviser, talking today with David Weston at

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Speaker 1: Bloomberg on the status of max masks and vaccines in

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Speaker 1: the US. But it's not hard to tell you what

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Speaker 1: the headline is today. The big news this afternoon an

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Speaker 1: agreement on a ceasefire between Israel and hamas This was

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Speaker 1: announced this afternoon by Prime Minister Benjamin Netan Yahoo. This

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Speaker 1: begins Friday, and in fact, at five forty five within

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Speaker 1: the hour, President Biden is supposed to speak about the

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Speaker 1: status of what is happening in the Middle East. Now,

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Speaker 1: there were hints of a potential ceasefire coming together throughout

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Speaker 1: the day, and in fact, we heard earlier before the

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Speaker 1: ceasefire was announced from White House Press Secretary Jen Saki.

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Speaker 1: We've got sound on that. Let's hear from her. We

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Speaker 1: believe the Israelis have achieved significant military objectives that they

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Speaker 1: laid out to achieve in relation to protecting their people

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Speaker 1: and to responding to the thousands of rocket attacks from

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Speaker 1: hamas Um. And so that's why, in part that we

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Speaker 1: feel they're in a position to start winding their operation down. Okay,

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Speaker 1: So most important question here, I think, Rick is does this,

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Speaker 1: based on what we've seen and this is breaking news

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Speaker 1: this afternoon, does this seem like it'll stick? Is this

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Speaker 1: a shaky de tant or does this seem solid? What

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Speaker 1: do you think Rick, Well, I think Israel uh nint

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Speaker 1: yah Who's government has probably done exactly what you described earlier.

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Speaker 1: They feel that they have accomplished the goal of degrading

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Speaker 1: Hamas's capacity to lob thousands of rockets into Israel. UH.

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Speaker 1: If that changes and Hamas breaks that piece by lobbying

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Speaker 1: these rockets, then Nitton Yah who, who has a you know,

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Speaker 1: perilous political situation at home, UH, will likely to strike back.

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Speaker 1: This eleven day war was probably something that bolstered nitt

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Speaker 1: yak who at home by looking like he was protecting

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Speaker 1: his citizens, and Hamas is is really the keeper of

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Speaker 1: that piece. If they start throwing missiles across the border again,

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Speaker 1: I think it breaks down immediately. President Biden really throughout

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Speaker 1: this entire process, he was in frequent communication with Israeli

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Speaker 1: Prime Minister Benjamin ntn Yahoo. Biden express support for a

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Speaker 1: ceasfire earlier in the week, although the White House clarified

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Speaker 1: that he did not actually call for a ceasfire outright,

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Speaker 1: despite members of his own party calling for it and

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Speaker 1: urging President Biden to call for it. Rick, how much

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Speaker 1: credit should the president be given for the result that

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Speaker 1: we're seeing today, Well, I definitely think he was able

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Speaker 1: to publicly create pressure, regardless of the adjectives used on

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Speaker 1: the Israelis to uh try to diminish the the the

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Speaker 1: length of this attack, right, I mean not the ferocity

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Speaker 1: of it, but the length of it. And he also

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Speaker 1: played an important role I think the President did in

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Speaker 1: dealing with President L C. C from each who has

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Speaker 1: been brokering the peace talks, because no matter what you

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Speaker 1: do with UH nint Yahoo, you still have to have

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Speaker 1: a counterparty h the Hamas leadership, the Palestinian leadership to

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Speaker 1: be willing to ratchet down on their side of the violence.

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Speaker 1: And it sounds like Egypt played a constructive role in

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Speaker 1: trying to bring that part of it into the table. Okay,

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Speaker 1: so again the big news coming up at about five

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Speaker 1: forty five, maybe a little later. Presidents are often late.

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Speaker 1: But ifvet were supposed to hear from President Biden speaking

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Speaker 1: about this Rick, what should we hear from Biden? What

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Speaker 1: would you anticipate the message would be, And how does

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Speaker 1: he wrap this up and and try to assure people

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Speaker 1: that this is a ceasefire that can hold well. I

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Speaker 1: think part of his strategy will be to ensure that

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Speaker 1: there's confidence on the part of both UH, the Israeli

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Speaker 1: leadership and Hamas that they're keeping it so high a

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Speaker 1: profile and the public view by the president himself going

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Speaker 1: on national UH television to to talk about this, that um,

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Speaker 1: it keeps everybody's feet to the fire. I think that

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Speaker 1: kind of public pressure that a president of the United

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Speaker 1: States uniquely can give to a situation like that can

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Speaker 1: actually keep the Ember's cool for a while as a

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Speaker 1: sort out how they coexist in the future, which I

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Speaker 1: think is still a very big question because what we

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Speaker 1: haven't spoken about is the Arab Jewish violence that's occurring

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Speaker 1: inside of Israel at the same time the Hamas rockets

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Speaker 1: were flowing. Well. Obviously, you know, President Biden has such

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Speaker 1: a prominent role when it comes to the U s

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Speaker 1: s Foreign policy, but Congress has also really gotten involved

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Speaker 1: in this story as well. You know, earlier this month,

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Speaker 1: the Biden administration approved the sale of a seven thirty

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Speaker 1: five million dollar precision guided weapons to Israel, and now

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Speaker 1: we're seeing the number of progressive lawmakers, including Senator Bernie

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Speaker 1: Sanders and Representative Alexandria Ocassio Cortez, are moving to block

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Speaker 1: that sale. Jack, do you see them being successful in

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Speaker 1: this initiative. And what does this sort of say overall

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Speaker 1: about the dynamics within the Democratic Party when it comes

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Speaker 1: to this issue. Well, I'm a little skeptical about this.

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Speaker 1: I can't exactly make a prediction, but I'm skeptical about

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Speaker 1: the push for a block on that arms sale, especially

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Speaker 1: because of the news today that there was a ceasefire.

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Speaker 1: And I think there was a huge push from a

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Speaker 1: lot of Democrats, not even just the Democrats on way

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Speaker 1: on the left there, the majority of Senate Democrats did

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Speaker 1: say we need to call for a ceasefire a few

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Speaker 1: days back. Uh. So this was an issue where the

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Speaker 1: president was facing significant political pressure from his own party

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Speaker 1: to do something. But with a ceasefire in hand now, uh,

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Speaker 1: you know, he never seemed like he was moving ahead

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Speaker 1: with trying to block that arms uh sale to Israel. Uh.

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Speaker 1: And I'm not sure anything's really pushing him now that

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Speaker 1: they've actually got some good news. But again, we'll have

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Speaker 1: to see how long this lasts. Now, guys, I I

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Speaker 1: hate to just change the subject, but this is such

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Speaker 1: a big news afternoon. Um, I've I've got to go

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Speaker 1: to Anthony Faucci. The coronavirus really is the coronavirus guy.

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Speaker 1: He's the director of n i A, but you know

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Speaker 1: him as the guy who who talks about the coronavirus

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Speaker 1: and has for the last year. He didn't interview earlier

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Speaker 1: today with our colleague at Bloomberg TV, David Weston, and

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Speaker 1: we've got some sound from that on masks and viruses

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Speaker 1: and really rounding up where the US stands on the coronavirus.

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Speaker 1: Let's play that clip from the interview that David Weston

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Speaker 1: did with Anthony Faucci. We don't want to declare victory prematurely,

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Speaker 1: but if we can get the of adults vaccinated with

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Speaker 1: at least one dose by the fourth of July, the

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Speaker 1: way the President is set the goal, I think the

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Speaker 1: chances of there being a surge or a rebound is

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Speaker 1: extremely low. That's the reason why we want to continue

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Speaker 1: to get people vaccinated. Okay, so extremely low is a

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Speaker 1: good phrase to hear, but that's in the context of

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Speaker 1: a surge. My big question that I've I've tried to

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Speaker 1: figure out that I'm getting a sense of, Rick, I

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Speaker 1: want to hear what you think about this is are

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Speaker 1: we assuming that there will be variants and that there

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Speaker 1: will be a low level of the coronavirus out there

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Speaker 1: at least for a little while, and our success story

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Speaker 1: is just trying to avoid a massive surge or how

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Speaker 1: do you put into context going forward the way Anthony

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Speaker 1: Faucci framed that, Rick, Yeah, well, uh. Dr Faucci has

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Speaker 1: been saying for some time that these variants are going

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Speaker 1: to occupy space in this pandemic as long as there

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Speaker 1: are people who are not vaccinated, and so regardless of

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Speaker 1: whether it's seventy or you know, we might be splitting hairs.

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Speaker 1: But the reality is, He's also said at the same time,

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Speaker 1: one way to manage these variants is likely to require

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Speaker 1: everybody who had gotten a shot in the last year,

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Speaker 1: uh to have an a booster shot that could be

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Speaker 1: designed to accommodate our immune system to protect us from

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Speaker 1: these variants. Also, uh So, I mean we get shots

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Speaker 1: every year for flu. It's a it's a variant of

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Speaker 1: the flu. Every year. There's never the same flu that

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Speaker 1: comes through. And I think this is just part of

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Speaker 1: the toolkit that they have to try and manage um

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Speaker 1: the and ensure that they don't have big outbreaks in

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Speaker 1: any one community. Uh. I think it's just another way

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Speaker 1: for the medical system to protect ourselves from future outbreaks,

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Speaker 1: you know, Rick, I mean I am one of those

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Speaker 1: Americans who is fully vaccinated. Now I have definitely been

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Speaker 1: able to take off my mask in certain situations where

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Speaker 1: I previously had to left it on. I am giddy

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Speaker 1: about being able to go back to the gym and

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Speaker 1: eating doors and restaurants. I'm wondering, since we've now sort

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Speaker 1: of hit this point where more people are are taking

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Speaker 1: off their masks, is there ever, even if we do

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Speaker 1: see a new surge, is it going to be hard

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Speaker 1: to sort of get people to go back to the

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Speaker 1: way that it was before with the lockdowns and the

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Speaker 1: mask where in the restrictions. I mean, now that we've

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Speaker 1: sort of opened the box on on freedom again, is

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Speaker 1: it going to be a little more difficult to have

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Speaker 1: to revert if we do start seeing a surge. You know,

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Speaker 1: It's interesting, Emily, I've been traveling quite a bit in

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Speaker 1: the last two weeks. Having been fully vaccinated myself. I've

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Speaker 1: created some some some liberty of my own, and it

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Speaker 1: is actually still amazing to me to see how different

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Speaker 1: each community I've landed in has addressed the max mask issue.

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Speaker 1: I'm actually in California today and and there's still a

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Speaker 1: mass mandate in effect for another couple of three weeks,

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Speaker 1: and people are adhering to that mandate. But in Texas

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Speaker 1: where I was earlier this week, um, there's nobody wearing

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Speaker 1: a mask. And and yet it's the same population within

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Speaker 1: the same you know, country. And so I do think

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Speaker 1: there are lessons learned, right, I mean, as we as

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Speaker 1: we conquer the pandemic and manage it more as a

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Speaker 1: public health issue, uh, and and not is is something

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Speaker 1: that's critical and and killing lots of people. I think

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Speaker 1: that people will find an adjustment. I know for sure

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Speaker 1: that I will wear a mask every year during flu

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Speaker 1: season on occasion when I'm traveling, because I just have

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Speaker 1: learned that. Uh it's it's a healthier way to occupy

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Speaker 1: space if you're on public transportation or something like that.

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Speaker 1: But I'm with you, I'm I'm looking forward to the

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Speaker 1: day I can walk into any restaurant I want and

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Speaker 1: not be wearing a mask. Yeah, Rick, I think we're

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Speaker 1: all more careful about flu season coming up. Thank goodness,

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Speaker 1: we didn't have a bad flu season last year. I'm

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Speaker 1: Emily Wilkins here along with my co host Jack Fitzpatrick

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Speaker 1: and Bloomberg Politics contributor Rick Davis. We're breaking down the

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Speaker 1: news of the day. One of the big things that

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Speaker 1: we saw this week come out of Congress. Five months

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Speaker 1: after a mob stormed the Capitol, vandalizing the building and

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Speaker 1: temporarily halting the certification of electoral votes. The House is

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Speaker 1: currently working to pass several pieces of legislation dealing with

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Speaker 1: the incident. We'll start with last night, when the House

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Speaker 1: of Representatives approved legislation that would establish a Congressional commission

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Speaker 1: to investigate the breach of the Capitol building. We saw

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Speaker 1: a thirty five House Republicans break ranks and join with

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Speaker 1: Democrats to support it, even though GOP leadership opposes the bill.

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Speaker 1: White House Practice Press Secretary Jen Saki spoke today about

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Speaker 1: the importance of the commission. Here's the sound on that

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Speaker 1: this is a question of how we secure our democracy

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Speaker 1: and the rule of law. So it's incredibly disappointing to

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Speaker 1: see how many, how many representatives have opted to turn

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Speaker 1: this into a political issue instead of doing what's right

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Speaker 1: for our country and our constitution. And they still have

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Speaker 1: the opportunity to do the right thing. You know, Rickett

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Speaker 1: seems pretty straightforward on the service Republicans and Democrats widely

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Speaker 1: agree that the Capital riots were an attack and something

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Speaker 1: that they don't want to see happen again. What does

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Speaker 1: it tell you that so many Republicans voted against the

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Speaker 1: formation of this commission? You know, I think it's not

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Speaker 1: an insignificant thing. I mean, and when you point out

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Speaker 1: a real breach, I think in in in the Republican

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Speaker 1: caucus in the House, we we saw a massive movement

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Speaker 1: in the last week by jettisoning UH Congresswoman Liz Cheney

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Speaker 1: from leadership, replacing her with a Trump loyalist. And even

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Speaker 1: today I think it put Minority Leader McCarthy, the Republican

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Speaker 1: charge of the House Caucus, in a very difficult position.

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Speaker 1: I have to explain to reporters that you know, he's saying, well,

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Speaker 1: I thought even more people would vote for this thing,

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Speaker 1: and and and and I I would at strange credibility.

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Speaker 1: I think for a House leader to say that, you know,

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Speaker 1: a third of his caucus walks on him, and and

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Speaker 1: somehow he expected more. So, I think it does pretend

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Speaker 1: to be um a shot and the armed of Democrats

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Speaker 1: who want to see this thing past the Senate. It's

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Speaker 1: a much closer vote there because of the uh, the

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Speaker 1: even number of Republicans and Democrats in that chamber, and

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Speaker 1: so uh, this is probably as good as springboard as

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Speaker 1: it can have in order to try and bypass Republican

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Speaker 1: leadership in the Senate's opposition to this and see if

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Speaker 1: they can garner similar kinds of support among the rank

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Speaker 1: and file. Now, they make a great point where I mean,

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Speaker 1: Senate Minority Leader Mitch McConnell has already come out against

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Speaker 1: this bill. So we're all watching closely to see if

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Speaker 1: there's any way to get the ten Republican votes needed

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Speaker 1: to actually pass and implement this commission. In addition to

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Speaker 1: the Commission, today the House took up another piece of

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Speaker 1: January six related legislation, a one point nine billion dollar

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Speaker 1: bill to strengthen capital security. Jack, you and I were

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Speaker 1: actually hanging out in the House today as this bill

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Speaker 1: was being passed. What was your takeaway from the vote

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Speaker 1: and the wider discussion on this legislation. Yeah, I've been

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Speaker 1: following the work on a bill to try to secure

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Speaker 1: the capital and I didn't even realize how close it

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Speaker 1: was going to be. They ended up passing at tot

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Speaker 1: to twelve. That was really surprising. They did not get

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Speaker 1: Republican support, and there were and this is the big

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Speaker 1: picture issue that I see. There were six Democrats who

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Speaker 1: either voted no or voted present as a prote best

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Speaker 1: and most of them put out statements saying the issue

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Speaker 1: was they don't want to give a big funding increase

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Speaker 1: to law enforcement agencies. So we are seeing rather than

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Speaker 1: a big bipartisan unity front to try to secure the capital,

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Speaker 1: we're seeing more or less the defund the police political

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Speaker 1: issue break off Democrats. Uh and and really highlight how

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Speaker 1: thin the Democratic majority is in the House. And I mean, Rick,

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Speaker 1: I'm curious what your take on this is if they

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Speaker 1: can't really even pass I mean they pass it in

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Speaker 1: the House, but it's looking bad in the Senate of

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Speaker 1: bill just to further secure the capital and ad fencing

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Speaker 1: and that kind of thing, because we've got Democrats breaking

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Speaker 1: off saying we don't want to give more money to

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Speaker 1: law enforcement. What what does that say about especially the

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Speaker 1: Democratic majority which is so razor finn in the House. Well, Jack,

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Speaker 1: I think you're spot on when you talk about how

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Speaker 1: close this vote was. I don't think anybody saw this

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Speaker 1: one coming. So far, we've we've become convinced that Nancy

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Speaker 1: Pelosi and and and and Joe Biden have been able

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Speaker 1: to keep the left wing of their party in check.

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Speaker 1: They've gotten pretty much Democratic support across the board for

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Speaker 1: these kinds of test votes where they knew they weren't

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Speaker 1: going to get any Republican votes. But the fact that Congress,

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Speaker 1: you know, people Omar Bush and Pressley like walked on

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Speaker 1: them with a very sharp rebuke saying, you know, basically

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Speaker 1: that this was a defund the police vote. Um, it's

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Speaker 1: a real embarrassment for them because they've been trying to

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Speaker 1: bury the defund movement because it really pressures their center

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Speaker 1: and in a much more significant way that could affect

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Speaker 1: them in the general or in the mid term elections.

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Speaker 1: And so I think there's gonna be a lot of

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Speaker 1: soul searching in that Democratic caucus on you know, what

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Speaker 1: do you do about these members who walk because it's

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Speaker 1: giving enormous ammunition to Republicans who used the defund police

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Speaker 1: very effectively in the general election. I mean, Rick talked

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Speaker 1: a little bit about sort of the upcoming mid terms.

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Speaker 1: I mean, is this something where we are going to

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Speaker 1: see this issue continue to play a role as the

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Speaker 1: mid terms come closer and closer. For sure, we saw

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Speaker 1: this being rolled out as part of the Republican attack

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Speaker 1: in Uh. For sure, it's going to be a part

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Speaker 1: of the dialogue, certainly in certain states where there's a

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Speaker 1: lot of pushback against the efforts to defund the police

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Speaker 1: and and and that kind of thing. So I think

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Speaker 1: it's part of the arsenal. I think they'll be much

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Speaker 1: more than this. It's not, I think, a dividing issue.

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Speaker 1: You know, where you're gonna win a lot of votes,

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Speaker 1: But this is part of the broader message that the

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Speaker 1: Joe Biden administration has been captive of the liberal left.

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Speaker 1: And if they had lost this vote by only a

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Speaker 1: few other Democrats walking on them, it would have been

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Speaker 1: a major embarrassment to the Democratic leadership in Congress. Uh.

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Speaker 1: You know, guys, I believe we have Ali z A

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Speaker 1: d joining us now, Deputy National Climate Advisor for the

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Speaker 1: White House, who's able to talk with us a bit

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Speaker 1: about the White House's climate agenda. Ali, thank you so

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Speaker 1: much for joining us. Hey, good to be on with

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Speaker 1: you all. Now. I understand you're able to talk at

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Speaker 1: this point about the executive order that's coming out. Is

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Speaker 1: that right on a number of sort of a government

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Speaker 1: wide UH measures that get into acknowledging and accounting for

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Speaker 1: the price that is, essentially what is priced into climate change.

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Speaker 1: Can you can you give us a quick rundown of

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Speaker 1: what is coming out today? Yeah? Absolutely, and good to

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Speaker 1: be on with you, UM. Today President Biden issued an

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Speaker 1: executive order that really marks a pivotable, pivotable step forward

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Speaker 1: for the United States UM, an effort to better analyze

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Speaker 1: and mitigate the serious financial and economic risk posed by

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Speaker 1: him a change. UM. Look, the baseline is this, our

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Speaker 1: our modern financial system was built on the assumption that

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Speaker 1: the world has a stable climate, and that's an assumption

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Speaker 1: that's carried forward in existing financial models. It underpins the

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Speaker 1: way we grow and invest in capital for the long term.

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Speaker 1: But increasingly it's clear that that assumption no longer holds.

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Speaker 1: We see increased wildfire risk, threatened the viability of insurance markets,

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Speaker 1: rising temperatures, drag on outdoor labor productivity, and poor investment

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Speaker 1: risk management that's putting the hard earned life savings of

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Speaker 1: American families and workers in jeopardy. And you know, one

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Speaker 1: of the things the present recognizes is that the current

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Speaker 1: financial metrics and tools UH fall short and that's why

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Speaker 1: the President issued an executive order that leverages a whole

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Speaker 1: of government approach to protect retirement savings, ensure the stability

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Speaker 1: of the federal government and the financial system, and mobilized

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Speaker 1: capital ords achieving a net zero emission economy By so Ali,

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Speaker 1: I'm looking at some of the details here, and a

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Speaker 1: couple of things that pop out to me are a

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Speaker 1: push to incorporate climate related risk disclosures into federal lending

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Speaker 1: and underwriting and procurement, and also ALIGNE encouraging the Labor

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Speaker 1: Secretary to amend Trump administration rules that bar investment firms

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Speaker 1: from considering those kinds of risks in investments on workers

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Speaker 1: pension plans. Maybe I'm being a little simplistic here, but

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Speaker 1: can you explain is this ultimately going to try to

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Speaker 1: lead to a push to get major pension plans and

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Speaker 1: maybe universities to divest from fossil fuels. What this is

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Speaker 1: about is increasing the information people have when they make

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Speaker 1: critical financial decisions, whether it's consumers and households or businesses

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Speaker 1: and large investment houses. And what we're realizing is that

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Speaker 1: um our financial regulatory UH system, our system of governance

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Speaker 1: has really um kept us from having that robustness of

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Speaker 1: data available for people, for firms, and we need to

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Speaker 1: get that data out there. We need to help people

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Speaker 1: understand how, you know, increased hurricane risk might impact a

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Speaker 1: portfolio that holds real property assets. We need to help

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Speaker 1: people understand how increased wildfire risk might result in supply

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Speaker 1: chain risks and then how that translates into their lives

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Speaker 1: UH into the decisions that they need to make. UM.

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Speaker 1: That's the focus here is to recognize the changing reality

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Speaker 1: UM that that is being created by the climate crisis

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Speaker 1: UM and help people trace that back into the financial

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Speaker 1: decisions they need to make. Give them the data UH

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Speaker 1: and the tools that they need to make better and

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Speaker 1: more sound decisions. Ali you, obviously this is part of

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Speaker 1: the drive behind this executive order, is to get more data.

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Speaker 1: But what do we know at this time about how

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Speaker 1: serious these potential climate risks could be. Look, we all

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Speaker 1: we know, for example, that the federal government is already

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Speaker 1: accruing very significant impacts in terms of uh hits to

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Speaker 1: the Treasury. Year over year, We're seeing the costs of

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Speaker 1: disasters increased UM. Just last year, the United States experience

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Speaker 1: twenty two disasters costing at least a billion dollars and damages,

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Speaker 1: so we know that that's taken place. UM. Then we

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Speaker 1: look on the private side and we see UM the

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Speaker 1: real impacts on UM utility companies who are now facing

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Speaker 1: increased fires and floods and storms. And we need to

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Speaker 1: get the data out there to help people understand which

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Speaker 1: firms are being impacted how UH and ultimately you know

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Speaker 1: what that's gonna do is help people UH make the

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Speaker 1: investments that are necessary and things like resilience and adaptation

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Speaker 1: help people see the opportunity UH that that investments in

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Speaker 1: clean energy and the clean energy future represents. So this

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Speaker 1: is about getting that information out there, UH, being smarter

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Speaker 1: about the decisions that we make, UM, and ultimately about

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Speaker 1: UH saving money. So Ali, I see some mentions not

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Speaker 1: only about transparency measures and that kind of thing, but

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Speaker 1: on how this affects the government's budget and trying to

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Speaker 1: avoid too much risk exposure to government I believe assets

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Speaker 1: and maybe you can tell us some more details about

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Speaker 1: how that works. But in particular, uh O MB is

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Speaker 1: supposed to be sending along a full budget request to

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Speaker 1: Congress next week. How much is this executive order going

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Speaker 1: to be incorporated into what we see next week. In

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Speaker 1: the full budget proposal, what the Executive Order directs OMB

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Speaker 1: to do is to integrate UM over the course of

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Speaker 1: the next year. It to undertake the analysis to look

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Speaker 1: at how this climate risk flows two different aspects of

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Speaker 1: federal investment and asset management UH and report out on

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Speaker 1: that as part of the next budget request. I think

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Speaker 1: what you'll see in this budget request is a commitment

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Speaker 1: to advancing the Administration's climate objectives, whether they be UH

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Speaker 1: in terms of spurring the new UM economics sectors that

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Speaker 1: we need to tackle this crisis and the jobs that

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Speaker 1: come with growing those sectors, or it's investing in resilience

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Speaker 1: and adaptation UM. So you'll see that in this budget.

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Speaker 1: But UM, one of the things is Executive of Order

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Speaker 1: does is directs the agency UM over the next year

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Speaker 1: to really integrate this more fundamentally into the way it

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Speaker 1: accounts for risk, thinks about opportunity and steward's the public's money. Ali, UH,

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Speaker 1: I know that obviously it sounds like there's going to

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Speaker 1: be a wide range of industries and businesses that are

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Speaker 1: going to be impacted by climate change going forward. But

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Speaker 1: I'm wondering, when this data does get produced, do you

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Speaker 1: think there are going to be any industries that are

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Speaker 1: going to be a particularly impacted by this, and what

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Speaker 1: might those impacts result in? You know. One of the

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Speaker 1: things that's really remarkable, UH, there's an outside group that

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Speaker 1: did analysis of about eighty different industries, took took the UM,

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Speaker 1: took the economy, split it up into roughly eighty industries,

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Speaker 1: and looked at which industries would be impacted. UH, and

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Speaker 1: it was a belief seventy five out of the eight. UM.

434
00:26:00,640 --> 00:26:05,480
Speaker 1: It's really hard to UM, you know, be a participant

435
00:26:05,520 --> 00:26:10,920
Speaker 1: in the real economy and not uh the the impacts

436
00:26:10,920 --> 00:26:15,960
Speaker 1: of climate blow UM to your operations and to your assets. UM.

437
00:26:16,000 --> 00:26:19,560
Speaker 1: You know, you think about things like the long supply

438
00:26:19,680 --> 00:26:23,920
Speaker 1: chains that support uh so many parts of the economy. UH.

439
00:26:23,920 --> 00:26:28,560
Speaker 1: Those supply chains are often vulnerable to physical disruption, to

440
00:26:29,119 --> 00:26:33,560
Speaker 1: risks from UH storms and hurricanes. And then you think

441
00:26:33,600 --> 00:26:39,359
Speaker 1: about the transition risks associated with a changing climate. UM,

442
00:26:39,400 --> 00:26:44,800
Speaker 1: as the world shifts to an increasingly low carbon economy,

443
00:26:45,080 --> 00:26:46,920
Speaker 1: how do we plan for that? How do we make

444
00:26:46,960 --> 00:26:53,280
Speaker 1: sure that that is upside and opportunity for our households

445
00:26:53,400 --> 00:26:57,000
Speaker 1: and for our firms. So Ali, this makes me wonder

446
00:26:57,119 --> 00:27:01,400
Speaker 1: about this growing in not a term trend, long, long term,

447
00:27:01,760 --> 00:27:04,920
Speaker 1: very very growing trend of passive investing. When we talk

448
00:27:04,960 --> 00:27:09,600
Speaker 1: about transparency measures and the financial risk to certain investments,

449
00:27:10,160 --> 00:27:13,159
Speaker 1: I'm curious if one of the goals here is for

450
00:27:13,240 --> 00:27:16,399
Speaker 1: people who put their savings into an e t F

451
00:27:16,640 --> 00:27:19,480
Speaker 1: and don't probably probably don't know what they're investing in

452
00:27:19,560 --> 00:27:22,960
Speaker 1: necessarily do you want them to know if they are

453
00:27:23,280 --> 00:27:26,639
Speaker 1: investing in oil companies and that kind of thing, And

454
00:27:26,640 --> 00:27:28,879
Speaker 1: then to maybe push back a little bit, how how

455
00:27:28,920 --> 00:27:32,280
Speaker 1: does how does this the trend of passive investing in

456
00:27:32,320 --> 00:27:35,640
Speaker 1: people putting their money into e t F and things

457
00:27:35,680 --> 00:27:38,359
Speaker 1: where they're not really paying attention to the detail tie

458
00:27:38,440 --> 00:27:41,360
Speaker 1: into this kind of executive executive order if at all.

459
00:27:42,720 --> 00:27:45,600
Speaker 1: I think one of one of the things that the

460
00:27:45,600 --> 00:27:48,359
Speaker 1: the inter agency process will be looking at is how

461
00:27:48,400 --> 00:27:54,639
Speaker 1: do you provide UH folks with actionable information UM clarity

462
00:27:54,760 --> 00:27:59,360
Speaker 1: and transparency that means um, you know UH for different

463
00:27:59,520 --> 00:28:04,360
Speaker 1: financial of products, UM, what do what do the labels say? Uh?

464
00:28:04,400 --> 00:28:09,640
Speaker 1: And are they um sufficiently descriptive of what's it's inside

465
00:28:09,640 --> 00:28:13,520
Speaker 1: the jar? Uh? And I think you know there are

466
00:28:13,560 --> 00:28:16,440
Speaker 1: there are a broad set of questions that the inner

467
00:28:16,520 --> 00:28:21,440
Speaker 1: Agency will be tackling and UM and I know that

468
00:28:21,440 --> 00:28:25,440
Speaker 1: that Secretary yell And in particular as chair of the

469
00:28:25,840 --> 00:28:30,280
Speaker 1: f stock UM and the independent Agencies, has already been

470
00:28:30,320 --> 00:28:33,360
Speaker 1: digging into two many of these questions. UM, and they

471
00:28:33,359 --> 00:28:37,520
Speaker 1: will continue to do that. Ali, we appreciate your time today.

472
00:28:37,560 --> 00:28:40,000
Speaker 1: Before you go real quick take us up to the

473
00:28:40,040 --> 00:28:43,280
Speaker 1: thirty foot level here. How does this executive order play

474
00:28:43,320 --> 00:28:48,280
Speaker 1: into President Biden's wider goals on climate change? Yeah? Look

475
00:28:48,360 --> 00:28:52,440
Speaker 1: at the big thing that the President UM, I think

476
00:28:52,480 --> 00:28:57,800
Speaker 1: has done is to one focus on a sector by

477
00:28:57,840 --> 00:29:02,240
Speaker 1: sector basis um or him. Climate action isn't just about

478
00:29:02,240 --> 00:29:06,640
Speaker 1: the electricity sector or the fuels sector. It's about every

479
00:29:07,080 --> 00:29:10,280
Speaker 1: single sector of the economy. Um. And. And the second

480
00:29:10,280 --> 00:29:14,400
Speaker 1: thing he's done is to focus in on the opportunity. UM.

481
00:29:14,440 --> 00:29:17,440
Speaker 1: You know, a friend of mine likes to say, in

482
00:29:17,520 --> 00:29:23,600
Speaker 1: climate change, there are three options mitigation, adaptation, and suffering. UM.

483
00:29:23,720 --> 00:29:28,120
Speaker 1: Our goal is to focus on the opportunity that actually

484
00:29:28,160 --> 00:29:33,240
Speaker 1: taking action represents. And so UM you know, here again

485
00:29:33,360 --> 00:29:36,600
Speaker 1: we are focusing on yet another sector of the economy

486
00:29:36,680 --> 00:29:40,120
Speaker 1: that has a critical role to play and where there's

487
00:29:40,160 --> 00:29:44,160
Speaker 1: tremendous opportunity if we lean in and take action. Ali,

488
00:29:44,320 --> 00:29:46,560
Speaker 1: thank you so much, Really, appreciate you taking the time

489
00:29:46,640 --> 00:29:49,880
Speaker 1: to join us and explain this executive order that just

490
00:29:49,880 --> 00:29:52,640
Speaker 1: just came out today. That was Ali's a d National

491
00:29:52,880 --> 00:29:57,760
Speaker 1: Deputy Deputy National Climate Advisor at the White House. Now, Rick,

492
00:29:57,800 --> 00:30:00,560
Speaker 1: I'm curious what you make of this on the financial

493
00:30:00,600 --> 00:30:06,320
Speaker 1: aspect of risk assessment climate change? Is this appropriate because

494
00:30:06,360 --> 00:30:09,080
Speaker 1: it's something that's been overlooked. Is this mission creep and

495
00:30:09,160 --> 00:30:13,600
Speaker 1: the climate regulation issue is getting into just about every

496
00:30:13,640 --> 00:30:17,360
Speaker 1: government agency. What's your main takeaway, Rick, Yeah, I don't

497
00:30:17,360 --> 00:30:20,200
Speaker 1: think it's mission creep, And I do think it's a

498
00:30:20,200 --> 00:30:23,680
Speaker 1: an issue that has been waiting for some sunshine. And

499
00:30:23,720 --> 00:30:26,520
Speaker 1: I think this executive order will get a debate going

500
00:30:27,000 --> 00:30:29,600
Speaker 1: that has been raging under the currents in the climate community.

501
00:30:29,600 --> 00:30:32,280
Speaker 1: And and and and a good example is, UH, this

502
00:30:32,360 --> 00:30:34,840
Speaker 1: is a case where the federal government is setting a standard.

503
00:30:34,880 --> 00:30:37,320
Speaker 1: They're saying, you know, the way the federal government is

504
00:30:37,360 --> 00:30:40,640
Speaker 1: going to treat these things on managing risks with their assets.

505
00:30:40,640 --> 00:30:43,960
Speaker 1: And of course they have enormous assets, UH, the military

506
00:30:44,000 --> 00:30:46,120
Speaker 1: with their bases all around the world, some of them,

507
00:30:46,280 --> 00:30:50,719
Speaker 1: you know on UH can be impacted significantly by rising

508
00:30:50,720 --> 00:30:53,320
Speaker 1: oceans and things like that. Navy bases are all looking

509
00:30:53,360 --> 00:30:56,560
Speaker 1: at how they adjust their risk to climate and the

510
00:30:56,600 --> 00:31:00,360
Speaker 1: impacts of climate. But imagine the insurance industry has been

511
00:31:00,400 --> 00:31:03,959
Speaker 1: grappling with this, what how do we apply risk management

512
00:31:04,320 --> 00:31:08,280
Speaker 1: to the physical risk, the liability risk, the transition risks

513
00:31:08,680 --> 00:31:12,160
Speaker 1: that are associated with our portfolios, not just those things

514
00:31:12,200 --> 00:31:16,440
Speaker 1: that we've underwritten and ensured without real regard for climate,

515
00:31:16,840 --> 00:31:19,480
Speaker 1: but also those things were invested in, like what you

516
00:31:19,520 --> 00:31:23,440
Speaker 1: were talking about, that may have climate risk embedded in it.

517
00:31:23,600 --> 00:31:26,480
Speaker 1: And so this gives everybody a chance to say, Okay,

518
00:31:26,520 --> 00:31:28,560
Speaker 1: now I understand what the federal government is doing. We

519
00:31:28,760 --> 00:31:30,959
Speaker 1: we don't have a requirement to do this now, but

520
00:31:31,000 --> 00:31:33,160
Speaker 1: we better get smart and start looking at how we

521
00:31:33,480 --> 00:31:38,680
Speaker 1: how we manage our portfolios. Insurance industry has been slow

522
00:31:38,520 --> 00:31:41,520
Speaker 1: to do this because I think there's a fear that

523
00:31:41,600 --> 00:31:44,680
Speaker 1: it could impact the value of their portfolios. And you

524
00:31:44,720 --> 00:31:48,360
Speaker 1: can only imagine if you start UH looking at underwriting

525
00:31:48,400 --> 00:31:51,640
Speaker 1: assumptions around climate how hard it's going to be to

526
00:31:51,680 --> 00:31:55,040
Speaker 1: get UH coverage in some places the world that are

527
00:31:55,160 --> 00:31:57,960
Speaker 1: super sensitive to the kinds of climate risk that we have.

528
00:31:58,240 --> 00:32:00,680
Speaker 1: So I think this is a great step. It's going

529
00:32:00,720 --> 00:32:02,880
Speaker 1: to be overlooked by a lot of people, but I

530
00:32:02,880 --> 00:32:05,280
Speaker 1: think it's the kind of thing where industry is really

531
00:32:05,280 --> 00:32:08,520
Speaker 1: gonna have to now rapple with this because the federal

532
00:32:08,520 --> 00:32:11,200
Speaker 1: governments setting a stand. Yeah, this is one of those

533
00:32:11,240 --> 00:32:13,760
Speaker 1: issues where it's tough to explain to the public, but

534
00:32:13,760 --> 00:32:16,720
Speaker 1: it's important because it's big for industry, big for the economy,

535
00:32:17,000 --> 00:32:20,400
Speaker 1: really significant one. Thanks again to Ali's ad for joining

536
00:32:20,480 --> 00:32:25,680
Speaker 1: us just there from the White House. You're listening to

537
00:32:25,800 --> 00:32:32,360
Speaker 1: Bloomberg Sound On on Bloomberg Radio. I'm Emily Wilkins here

538
00:32:32,400 --> 00:32:36,160
Speaker 1: with my co host Jack Fitzpatrick and joined once again

539
00:32:36,320 --> 00:32:41,280
Speaker 1: by the great Bloomberg Politics contributor Rick Davis. We are

540
00:32:41,320 --> 00:32:45,080
Speaker 1: potentially waiting for remarks soon from President Biden on the

541
00:32:45,120 --> 00:32:49,240
Speaker 1: breaking news today of a ceasefire between Israel and Hamas

542
00:32:49,280 --> 00:32:53,320
Speaker 1: that was announced this afternoon after eleven days of fighting.

543
00:32:53,720 --> 00:32:55,960
Speaker 1: But first we want to go to another thing that

544
00:32:56,040 --> 00:32:59,600
Speaker 1: the Biden administration did today. Always busy over there at

545
00:32:59,600 --> 00:33:03,000
Speaker 1: the White House of today, the Biden administration released a

546
00:33:03,000 --> 00:33:06,120
Speaker 1: report claiming that if the i r S was given

547
00:33:06,120 --> 00:33:10,560
Speaker 1: more funding, it would bolster its staff and its ability

548
00:33:10,600 --> 00:33:13,800
Speaker 1: to crack down on hidden funds by the wealthy and

549
00:33:13,880 --> 00:33:17,880
Speaker 1: raise seven hundred billion dollars in the next decade. Now,

550
00:33:18,040 --> 00:33:20,040
Speaker 1: this isn't the first time we've heard this number from

551
00:33:20,040 --> 00:33:24,560
Speaker 1: the Biden administration, and there's been some skepticism over those numbers.

552
00:33:25,000 --> 00:33:29,640
Speaker 1: Pennsylvania University's Wharton School examined the president's plan and said,

553
00:33:29,640 --> 00:33:31,720
Speaker 1: you know what, we think it's only going to raise

554
00:33:31,880 --> 00:33:35,920
Speaker 1: about four hundred eighty billion dollars. But the Biden administration

555
00:33:36,040 --> 00:33:39,920
Speaker 1: pushed back against that today with this report laying out

556
00:33:40,000 --> 00:33:42,600
Speaker 1: really how they would get at the billions they say

557
00:33:42,640 --> 00:33:46,720
Speaker 1: are not getting properly taxed. Part of that a Treasury

558
00:33:46,760 --> 00:33:51,800
Speaker 1: plan includes requiring banks and financial institutions to report account flows,

559
00:33:52,280 --> 00:33:55,719
Speaker 1: information that the i r S does not currently have.

560
00:33:56,440 --> 00:33:59,440
Speaker 1: And even though there has been some bipartisan support for

561
00:33:59,600 --> 00:34:02,360
Speaker 1: boosting the i r s IS capability, we saw a

562
00:34:02,440 --> 00:34:05,880
Speaker 1: Republican Senator, Chuck Grassley of Iowa tweeted this week that

563
00:34:05,960 --> 00:34:09,120
Speaker 1: while he's all offered catching checks, tax cheats and closing

564
00:34:09,160 --> 00:34:13,520
Speaker 1: the tax gap, Biden's plan to expand bank reporting is

565
00:34:13,600 --> 00:34:17,520
Speaker 1: ripe for overreach and imposes more burdens on small businesses

566
00:34:17,680 --> 00:34:21,320
Speaker 1: and family farms, and he suggested it could also influence

567
00:34:21,560 --> 00:34:25,440
Speaker 1: who gets an audit and why Rick Davis, uh, you

568
00:34:25,440 --> 00:34:28,600
Speaker 1: know you've you've done so much with politics over the years.

569
00:34:28,719 --> 00:34:32,000
Speaker 1: Are these valid concerns or is this just sort of

570
00:34:32,040 --> 00:34:36,920
Speaker 1: more politicking over President Biden's tax plan. Yeah, I think

571
00:34:36,960 --> 00:34:39,960
Speaker 1: I think it's a combination. Obviously, you can't talk about

572
00:34:40,000 --> 00:34:43,120
Speaker 1: the tax plan in a vacuum. It's what's funding the

573
00:34:43,160 --> 00:34:47,000
Speaker 1: infrastructure plan. So if it doesn't have enough revenue associated

574
00:34:47,040 --> 00:34:50,799
Speaker 1: with it to fund the infrastructure plan, then the infrastructure plan,

575
00:34:51,080 --> 00:34:54,160
Speaker 1: you know, is on shaky ground, as if it's not

576
00:34:54,200 --> 00:34:58,640
Speaker 1: on shaky ground already. So so this is an instrumental debate.

577
00:34:58,760 --> 00:35:04,319
Speaker 1: This this has great ramifications to future big legislative outcomes.

578
00:35:04,360 --> 00:35:07,120
Speaker 1: And so I would say too, it's caught in a

579
00:35:07,520 --> 00:35:12,040
Speaker 1: classic struggle between Republicans and Democrats. Republicans don't want to

580
00:35:12,120 --> 00:35:14,960
Speaker 1: keep adding to the capacity of government. Um, I think

581
00:35:15,000 --> 00:35:18,160
Speaker 1: everybody does agree that they want to catch tax sheets cheats,

582
00:35:18,640 --> 00:35:23,680
Speaker 1: but they don't want to build a significant presence of government,

583
00:35:23,760 --> 00:35:26,880
Speaker 1: you know, into the future. And so Democrats think government

584
00:35:26,880 --> 00:35:29,880
Speaker 1: can solve a lot of problems. Republicans think government creates

585
00:35:29,880 --> 00:35:31,960
Speaker 1: a lot of problems. And so that's part of the

586
00:35:32,000 --> 00:35:37,279
Speaker 1: ideological debate underneath the legislative debate. So Rick, I'm I'm

587
00:35:37,280 --> 00:35:41,600
Speaker 1: always curious about the gimmicky things that lawmakers do to

588
00:35:41,880 --> 00:35:44,920
Speaker 1: say they paid for a major piece of legislation or

589
00:35:44,960 --> 00:35:48,239
Speaker 1: to try to downplay the cost of the legislation. I

590
00:35:48,239 --> 00:35:51,160
Speaker 1: I was very curious about how this would work out,

591
00:35:51,280 --> 00:35:54,560
Speaker 1: especially because they score these bills and they go to

592
00:35:54,640 --> 00:35:57,840
Speaker 1: the Congressional Budget Office which gives them a magic number,

593
00:35:58,040 --> 00:35:59,759
Speaker 1: and they tell them, you know, this adds this to

594
00:35:59,760 --> 00:36:01,759
Speaker 1: the deficit, or it doesn't. It can often be an

595
00:36:01,880 --> 00:36:07,319
Speaker 1: arbitrary issue. Yesterday, the House Budget Chairman John Yarmouth was

596
00:36:07,360 --> 00:36:10,120
Speaker 1: talking to some of US reporters saying the the I R.

597
00:36:10,200 --> 00:36:13,239
Speaker 1: S Enforcement thing might not really work out as a

598
00:36:13,320 --> 00:36:16,560
Speaker 1: legitimate official pay for But you know, I think of

599
00:36:16,600 --> 00:36:22,600
Speaker 1: the tax push in from Republicans um where they claimed

600
00:36:22,640 --> 00:36:25,440
Speaker 1: it would pay for itself. The CBO didn't agree, but

601
00:36:25,480 --> 00:36:27,640
Speaker 1: they did it anyway. Are we gonna should we be

602
00:36:27,920 --> 00:36:31,520
Speaker 1: on the lookout for gimmicky things that say that this

603
00:36:31,600 --> 00:36:34,680
Speaker 1: infrastructure bill is paid for when it might not really be.

604
00:36:35,400 --> 00:36:37,560
Speaker 1: Or do you think we're just gonna deficit finance this

605
00:36:37,680 --> 00:36:40,879
Speaker 1: if it happens and say, well, you know it'll it'll

606
00:36:40,880 --> 00:36:42,880
Speaker 1: pay for itself an economic growth later. How do you

607
00:36:42,920 --> 00:36:46,880
Speaker 1: see them justifying the cost and addressing the idea of

608
00:36:46,920 --> 00:36:51,799
Speaker 1: a pay for that often to me seems pretty gimmicky. Yeah, Jack,

609
00:36:51,840 --> 00:36:55,000
Speaker 1: You you point out a either a huge advantage to

610
00:36:55,120 --> 00:36:59,279
Speaker 1: politicians of every party or a huge disadvantage, and that

611
00:36:59,480 --> 00:37:02,200
Speaker 1: is reality never really strikes him in the face. I

612
00:37:02,280 --> 00:37:05,280
Speaker 1: mean the point you make about, you know, Republicans saying

613
00:37:05,280 --> 00:37:08,000
Speaker 1: the seventeen tax cuts we're gonna pay for themselves, and

614
00:37:08,080 --> 00:37:10,360
Speaker 1: the Democrats saying the irs is going to fund this

615
00:37:10,480 --> 00:37:13,799
Speaker 1: infrastructure bill, it's all bull right. I mean, they don't

616
00:37:13,880 --> 00:37:18,240
Speaker 1: know and and and historically, you're right, we've used organizations,

617
00:37:18,320 --> 00:37:22,880
Speaker 1: the nonpartisan Congressional Budget Office to score these things to

618
00:37:22,960 --> 00:37:26,560
Speaker 1: determine how the congress people will mark them up, you know,

619
00:37:26,600 --> 00:37:29,360
Speaker 1: in their committees. Uh. Donald Trump did his best to

620
00:37:29,400 --> 00:37:32,880
Speaker 1: try and undermine the integrity of the CBO because he

621
00:37:32,880 --> 00:37:35,359
Speaker 1: didn't like the numbers they were giving him. I would

622
00:37:35,360 --> 00:37:39,120
Speaker 1: say the Biden administration, in a opposite reaction to the

623
00:37:40,040 --> 00:37:43,640
Speaker 1: Trump administration, is trying to bolster the integrity these institutions.

624
00:37:43,680 --> 00:37:47,040
Speaker 1: So if they score this poorly, it's not likely that

625
00:37:47,080 --> 00:37:49,000
Speaker 1: the Biden administration is going to fight them on it.

626
00:37:49,080 --> 00:37:50,840
Speaker 1: So it's a bit of a it's a bit of

627
00:37:50,840 --> 00:37:53,400
Speaker 1: a pickle for for people trying to figure out what

628
00:37:53,520 --> 00:37:56,480
Speaker 1: how much money any of this is going to give them. Ultimately,

629
00:37:56,800 --> 00:38:00,759
Speaker 1: if you want to spend eight nine million dollars on

630
00:38:00,800 --> 00:38:04,799
Speaker 1: an infrastructure bill, there's a lot of creative work that

631
00:38:04,840 --> 00:38:07,160
Speaker 1: can be done at the at the appropriations level to

632
00:38:07,239 --> 00:38:09,399
Speaker 1: find a way to pay for that. As you point out,

633
00:38:09,440 --> 00:38:11,960
Speaker 1: there's a lot of tools, whether it's in reverend raising

634
00:38:12,239 --> 00:38:16,400
Speaker 1: or or in debt financing. You know, Rick, I so

635
00:38:16,480 --> 00:38:19,600
Speaker 1: appreciate you just sort of injecting that little bit of reality.

636
00:38:19,840 --> 00:38:23,640
Speaker 1: Sometimes with politics and rhetoric, it's easy to sort of

637
00:38:23,680 --> 00:38:26,560
Speaker 1: lose fight of what's real and what, as you said,

638
00:38:26,800 --> 00:38:29,320
Speaker 1: is a little bull that said, I do sort of

639
00:38:29,360 --> 00:38:32,000
Speaker 1: want to turn to the fact that these tax cuts aren't,

640
00:38:32,040 --> 00:38:34,160
Speaker 1: you know, as you mentioned, being done in a vacuum.

641
00:38:34,200 --> 00:38:39,440
Speaker 1: They are a part of that larger push push to

642
00:38:39,440 --> 00:38:43,399
Speaker 1: get a transportation and infrastructure legislation done, and you don't

643
00:38:43,560 --> 00:38:46,200
Speaker 1: right now that pay for There are a really key

644
00:38:46,239 --> 00:38:51,800
Speaker 1: sticking point in negotiations between President Biden and Republicans. The

645
00:38:51,920 --> 00:38:55,239
Speaker 1: Republicans say we need user fees. President Biden says, no way.

646
00:38:55,320 --> 00:38:57,879
Speaker 1: President Biden says we need to raise the corporate text weight.

647
00:38:57,920 --> 00:39:00,640
Speaker 1: Republicans say no way. It does seemed like they do

648
00:39:00,719 --> 00:39:04,000
Speaker 1: have some agreement here on this bolstream of the I

649
00:39:04,400 --> 00:39:08,040
Speaker 1: R S. I mean, could this Jack, You've you've been

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00:39:08,040 --> 00:39:11,040
Speaker 1: following this issue as closely as I have. Could this

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00:39:11,160 --> 00:39:13,640
Speaker 1: sort of be a path forward into finding some sort

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00:39:13,640 --> 00:39:16,520
Speaker 1: of agreement to get infrastructure done? Yeah? And I think

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00:39:16,719 --> 00:39:21,120
Speaker 1: one of the outstanding questions is how badly does President

654
00:39:21,120 --> 00:39:25,680
Speaker 1: Biden really want to offset the cost entirely? As I mentioned,

655
00:39:25,680 --> 00:39:28,080
Speaker 1: when we see a big piece of legislation, we get

656
00:39:28,080 --> 00:39:33,080
Speaker 1: into the conversation about gimmicks that make the costs seem

657
00:39:33,200 --> 00:39:37,359
Speaker 1: maybe less than it otherwise would be. There's um there.

658
00:39:37,400 --> 00:39:39,920
Speaker 1: There's sort of a push and pull as Rick mentioned

659
00:39:39,920 --> 00:39:43,680
Speaker 1: on the CBO, and Democrats have said again and again

660
00:39:43,719 --> 00:39:46,840
Speaker 1: they really don't want to try to pressure the CBO.

661
00:39:46,880 --> 00:39:49,800
Speaker 1: They were critical of Republicans trying to pressure the CBO

662
00:39:49,880 --> 00:39:53,600
Speaker 1: on the tax cuts. Although I will note that Chairman Yarmouth,

663
00:39:53,600 --> 00:39:55,839
Speaker 1: the budget chairman in the House, mentioned he is going

664
00:39:55,880 --> 00:39:59,160
Speaker 1: to have a conversation with the CBO director at some

665
00:39:59,200 --> 00:40:01,640
Speaker 1: point in the near few sure about whether these kinds

666
00:40:01,640 --> 00:40:04,200
Speaker 1: of I R S measures can be officially used for

667
00:40:04,239 --> 00:40:06,680
Speaker 1: a pay for but you know, ultimately they can deficit

668
00:40:06,719 --> 00:40:09,719
Speaker 1: finance this and not get a good score on an

669
00:40:09,760 --> 00:40:12,640
Speaker 1: official you know, the CBO can say it costs a

670
00:40:12,640 --> 00:40:15,799
Speaker 1: certain amount of money, and then the supporters can say, well,

671
00:40:15,840 --> 00:40:18,359
Speaker 1: we disagree and we're going to vote for it anyway. Uh.

672
00:40:18,400 --> 00:40:21,360
Speaker 1: And in fact, when they do this in a partisan

673
00:40:21,400 --> 00:40:23,640
Speaker 1: way through the budget process, they often carve out a

674
00:40:23,640 --> 00:40:26,200
Speaker 1: certain amount of money that they'll add to the deficit,

675
00:40:26,640 --> 00:40:28,520
Speaker 1: even if they claim it won't add to the deficit.

676
00:40:28,719 --> 00:40:32,279
Speaker 1: So I'm curious how Biden will go forward and is

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00:40:32,320 --> 00:40:35,480
Speaker 1: he going to be a really staunch believer in having

678
00:40:35,520 --> 00:40:38,200
Speaker 1: to pay for this or does he give the nod

679
00:40:38,280 --> 00:40:41,439
Speaker 1: to some more gimmicky kind of stuff. Uh. And that's

680
00:40:41,520 --> 00:40:44,440
Speaker 1: that's something that we've been that we've been watching for

681
00:40:44,680 --> 00:40:46,760
Speaker 1: on the hill. Now, if I can sneak in. Another

682
00:40:46,800 --> 00:40:48,919
Speaker 1: issue that I thought was really interesting that you send

683
00:40:48,920 --> 00:40:52,960
Speaker 1: a note around about is as we are watching these

684
00:40:53,040 --> 00:40:57,120
Speaker 1: lawmakers go to vote, there's a little controversy over the

685
00:40:57,160 --> 00:41:00,319
Speaker 1: fact that they're still supposed to be wearing masks on

686
00:41:00,360 --> 00:41:02,600
Speaker 1: the House floor. And I've got to ask you, Emily,

687
00:41:02,680 --> 00:41:05,759
Speaker 1: what you noticed earlier about I understand there are some

688
00:41:05,800 --> 00:41:09,520
Speaker 1: members who are refusing and they're taking the fine What's

689
00:41:09,719 --> 00:41:12,480
Speaker 1: what's going on. I'm very confused. You've been on the

690
00:41:12,520 --> 00:41:15,600
Speaker 1: hill even more than I have lately about the mask

691
00:41:15,800 --> 00:41:18,040
Speaker 1: rule in the House and how this is turning into

692
00:41:18,120 --> 00:41:20,880
Speaker 1: the latest controversy. Sure so, Jack, as you and I

693
00:41:20,960 --> 00:41:25,920
Speaker 1: well know, the CDC has come out eased mask wearing guidelines. However,

694
00:41:26,160 --> 00:41:31,200
Speaker 1: the House Physician attending physician basically put out a memo saying, hey, look,

695
00:41:31,320 --> 00:41:34,360
Speaker 1: it's great you can now demask in certain places around

696
00:41:34,360 --> 00:41:36,720
Speaker 1: the Capitol. But because we're having a bunch of people

697
00:41:36,760 --> 00:41:39,600
Speaker 1: gather in a room as you do for the House Chamber,

698
00:41:39,920 --> 00:41:41,960
Speaker 1: we want people to leave their masks on there, and

699
00:41:41,960 --> 00:41:44,320
Speaker 1: we also want them to leave them on in committees.

700
00:41:44,640 --> 00:41:48,360
Speaker 1: This did not sit very well with a couple of Republicans,

701
00:41:48,400 --> 00:41:52,359
Speaker 1: but we did hear Speaker Pelosi addressed this today at

702
00:41:52,360 --> 00:41:56,000
Speaker 1: her a weekly briefing. Here's the sound on that we

703
00:41:56,080 --> 00:41:59,560
Speaker 1: have a responsibility to make sure of that the House

704
00:42:00,040 --> 00:42:03,719
Speaker 1: of the Representative Chamber is not a petreet dish for

705
00:42:03,880 --> 00:42:07,840
Speaker 1: the because of the selfishness of some not to be vaccinated.

706
00:42:09,080 --> 00:42:11,080
Speaker 1: I mean, even so, Jack, as you point out, I

707
00:42:11,080 --> 00:42:13,759
Speaker 1: think we saw thirteen members this week sort of get

708
00:42:13,760 --> 00:42:16,799
Speaker 1: their second violation. That's a five hundred dollar fine. First

709
00:42:16,840 --> 00:42:19,439
Speaker 1: one is just a warning, and then we haven't seen

710
00:42:19,480 --> 00:42:22,719
Speaker 1: any member yet get that second level of fine that

711
00:42:22,960 --> 00:42:25,840
Speaker 1: is two thousand, five hundred dollars and for some of

712
00:42:25,840 --> 00:42:29,799
Speaker 1: these lawmakers that is a hefty cut chunk out of

713
00:42:29,840 --> 00:42:32,880
Speaker 1: their paycheck. But also it's just it's more Polisan partisan

714
00:42:33,080 --> 00:42:35,839
Speaker 1: politics that we're seeing on the floor. It's just one

715
00:42:35,920 --> 00:42:38,919
Speaker 1: more issue for Democrats and Republicans to sort of knock

716
00:42:39,000 --> 00:42:42,680
Speaker 1: heads over around Congress. Did I see Marcy Captor was

717
00:42:42,719 --> 00:42:45,080
Speaker 1: one of them too? Strangely enough, as as partisan as

718
00:42:45,120 --> 00:42:47,720
Speaker 1: this has gotten, there's one Democrat who got in trouble.

719
00:42:48,000 --> 00:42:51,080
Speaker 1: I know, Marcy capt Democrat from Ohio, and the House

720
00:42:51,239 --> 00:42:54,120
Speaker 1: has a history of seeming like somebody who doesn't entirely

721
00:42:54,160 --> 00:42:57,120
Speaker 1: take directions from Pelosi, but that one stood out to me.

722
00:42:57,200 --> 00:42:59,160
Speaker 1: Although I think you're still right to mention this is

723
00:42:59,239 --> 00:43:02,919
Speaker 1: largely turned into this partisan issue over whether you wear

724
00:43:03,000 --> 00:43:05,040
Speaker 1: a mask in the House. Yeah, that's been the other thing.

725
00:43:05,120 --> 00:43:07,759
Speaker 1: I mean, you've seen Democrats set up these magnetometers and

726
00:43:07,800 --> 00:43:10,080
Speaker 1: give fines. You've seen them set these mass and grab fines.

727
00:43:10,120 --> 00:43:12,759
Speaker 1: But you've seen also Democrats get fined, and we don't

728
00:43:12,760 --> 00:43:15,319
Speaker 1: know the backstory and captor at this point. But she'll

729
00:43:15,320 --> 00:43:17,120
Speaker 1: have a chance to dispute that fine in the House

730
00:43:17,120 --> 00:43:20,000
Speaker 1: Ethics Committee, and we'll just see where this whole mask

731
00:43:20,040 --> 00:43:23,359
Speaker 1: wearing thing goes. Well, that is it for today's show.

732
00:43:23,800 --> 00:43:27,320
Speaker 1: I was joined today by Bloomberg Politics contributor Rick Davis

733
00:43:27,360 --> 00:43:31,480
Speaker 1: and my co host Jack Fitzpatrick. I'm Emily Wilkins. This

734
00:43:31,920 --> 00:43:32,600
Speaker 1: is Bloomberg