WEBVTT - Massachusetts Senator Elizabeth Warren Talks Upcoming Miran Confirmation, Fed Independence 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Joining us now from

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<v Speaker 1>Capitol Hill is Democratic Senator Elizabeth Warren of Massachusetts, the

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<v Speaker 1>ranking member on the Senate Banking Committee, who I suspect

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<v Speaker 1>has a few questions ready for mister Myron. Senator, welcome

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<v Speaker 1>back to Bloomberg's TV and radio. In the first hearing

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<v Speaker 1>for Stephen Myron to join the Federal Reserve Board of Governors,

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<v Speaker 1>we'll see this tomorrow. His opening remarks, some of his

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<v Speaker 1>prepared remarks were released, and he writes, in my view,

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<v Speaker 1>the most important job of the Central Bank is to

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<v Speaker 1>prevent depressions and hyper inflations. Do you agree with him?

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<v Speaker 1>And do you believe him?

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<v Speaker 2>Look, can we just back up just a tiny little bit,

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<v Speaker 2>and that is the Banking Committee should be holding hearing tomorrow,

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<v Speaker 2>but it should not be a business as usual. Let's

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<v Speaker 2>grease the skids and run through Donald Trump's nominee for

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<v Speaker 2>the FED. Instead, we should be heavy an oversight hearing

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<v Speaker 2>about Donald Trump's unprecedented attacks on the independence of the FED.

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<v Speaker 2>He has made three hard runs at the FED over

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<v Speaker 2>the past few months, trying to fire Jerome Pal just

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<v Speaker 2>on his own, trying to fire Jerome Pal for cause,

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<v Speaker 2>trumping up charges around how much money he had spent

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<v Speaker 2>in the FED building rehabilitation, and now trying to fire

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<v Speaker 2>Lisa Cook. Donald Trump is making a move to try

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<v Speaker 2>to destroy the independence of the Federal Reserve Bank, unlike

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<v Speaker 2>anything that has ever been done in American history. And

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<v Speaker 2>right now the Republicans who run the committee are saying,

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<v Speaker 2>let's just have a business as usual, Let's bring up

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<v Speaker 2>the Donald Trump nominee, move him on through. And I

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<v Speaker 2>just want to be clear, I think that is a mistake.

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<v Speaker 2>I think we have a responsibility to address this question

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<v Speaker 2>of FED independence.

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<v Speaker 3>First, Senator Warren, let's talk about Lisa Cook there in

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<v Speaker 3>the seat, that of course is getting a lot of attention,

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<v Speaker 3>your colleague, FM. North Carolina Senator Tillis earlier today said

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<v Speaker 3>he would not consider nominating someone to take her place

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<v Speaker 3>while the litigation was ongoing. If the Supreme Court, for example,

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<v Speaker 3>does rule in fact that while the litigation is on

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<v Speaker 3>going to figure out whether her firing was in fact legal,

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<v Speaker 3>would you be willing to block Donald Trump's nominee to

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<v Speaker 3>fill that seat.

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<v Speaker 2>Look, Donald Trump cannot fire Lisa Cook based on at

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<v Speaker 2>least the facts or non facts that have been presented

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<v Speaker 2>thus far. Again, this is about independence of the FED

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<v Speaker 2>and Donald Trump's efforts to seize control over the FED,

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<v Speaker 2>and yes, I would try to block that, and I

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<v Speaker 2>would think the Republican senators, who also care about independence

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<v Speaker 2>of the FED would do the same. You know, I

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<v Speaker 2>just want to remind everyone why we have an independent FED.

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<v Speaker 2>And that's true whether you have a Democrat in the

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<v Speaker 2>White House or a Republican in the White House. You

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<v Speaker 2>in theory, have a group of people out there who

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<v Speaker 2>look at the economic numbers and they make decisions on

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<v Speaker 2>things like interest rates as best they can based on

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<v Speaker 2>those numbers, not based on political pressure from the President

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<v Speaker 2>of the United States. If Donald Trump destroys that, sure

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<v Speaker 2>he may be able to get what he wants on

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<v Speaker 2>interest rates in the short term, but he undermines confidence

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<v Speaker 2>in the FED and its decision making and its rate setting.

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<v Speaker 2>We've seen this before when autocrats have taken over central

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<v Speaker 2>bank in places like Turkey. What happens is interest rates

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<v Speaker 2>shoot through the roof, and that is a real problem

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<v Speaker 2>for our economy. Everybody has a stake in an independent

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<v Speaker 2>FED and to let Donald Trump just destroy that without

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<v Speaker 2>even pushing back is a terrible.

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<v Speaker 3>Mistake, Senator Warren, I hear you, But if the Supreme

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<v Speaker 3>Court rules that a nominee can actually take her place,

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<v Speaker 3>how do you plan on blocking that.

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<v Speaker 2>I'm in the minority. I understand that, but I would

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<v Speaker 2>try to persuade my Republican colleagues that it would be

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<v Speaker 2>a terrible mistake to help Donald Trump in effect destroy

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<v Speaker 2>the independence of the FED. Look, this is nothing new

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<v Speaker 2>in the sense that go back and look at it.

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<v Speaker 2>There are many Republican senators who in times past have

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<v Speaker 2>talked about the importance of the independence of the FED, because,

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<v Speaker 2>like I say, that's not like a democratic position or

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<v Speaker 2>a Republican position. Nope, it's a position that those of

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<v Speaker 2>us who try to watch this about how regulation of

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<v Speaker 2>the economy works understand that from the beginning, providing some

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<v Speaker 2>insulation for the financial decision makers, like the people who

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<v Speaker 2>said interest rates, to insulate them from the political side

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<v Speaker 2>of the House, from the President of the United States,

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<v Speaker 2>is ultimately good for the economy. And it's why our

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<v Speaker 2>Fed's interst rate setting is the gold standard for the world,

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<v Speaker 2>and Donald Trump wants to burn that down.

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<v Speaker 1>Senator, I know that this sounds like it's turning into

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<v Speaker 1>a hearing that will be atypical tomorrow and something that

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<v Speaker 1>we're going to be watching and bringing to our viewers

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<v Speaker 1>and listeners here on Bloomberg. I do want to ask

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<v Speaker 1>you about a couple of other stories that are making

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<v Speaker 1>news today, and one that's from the New York Times

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<v Speaker 1>that has to do strangely with the New York mayoral race.

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<v Speaker 1>Not something I would tend to ask you about, but

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<v Speaker 1>Donald Trump is reportedly considering giving roles to some of

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<v Speaker 1>the candidates in the New York mayoral race, including Eric Adams,

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<v Speaker 1>for potentially a job at HUD. The idea would be including,

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<v Speaker 1>by the way, Curtis Lea as well, that clear Aleen

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<v Speaker 1>for Andrew Cuomo. I don't know if you buy that reporting,

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<v Speaker 1>but you would have to clear a nominee to run HUD. Correct.

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<v Speaker 1>Is that something you would be prepared to do Secretary Adams.

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<v Speaker 2>Well, it depends on what he is nominated for. There

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<v Speaker 2>are a lot of jobs at HUD that don't require

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<v Speaker 2>Senate confirmation. We already have ahead of HUD. I don't

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<v Speaker 2>know what Donald Trump is proposing that. The part that's

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<v Speaker 2>triple underlined here is that Donald Trump supports Andrew Cuomo

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<v Speaker 2>to be mayor of New York period. That's all this

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<v Speaker 2>is about. And he is willing to bring the force

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<v Speaker 2>of the United States government to use his tools as

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<v Speaker 2>President of the United States, not on behalf of the

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<v Speaker 2>people of the United States, not on behalf of finding

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<v Speaker 2>the best nominee for position at HUD but to be

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<v Speaker 2>able to manipulate the mayoral race to try to help

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<v Speaker 2>and Drew Cuomo in New York City. I think that's

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<v Speaker 2>not only wrong for Donald Trump. I can't imagine that

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<v Speaker 2>this is going to make the people of New York

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<v Speaker 2>City say, woo, who Andrew Cuomo is my guy. I

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<v Speaker 2>think this is going to make the people of New

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<v Speaker 2>York City say, our city is not for sale to

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<v Speaker 2>Donald Trump.

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<v Speaker 1>Well, we'll see where this story goes. Senator. It does

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<v Speaker 1>seem we can't get away from the story surrounding the

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<v Speaker 1>Jeffrey Epstein files. And I know that there are a

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<v Speaker 1>series of approaches on Capitol Hill right now to get

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<v Speaker 1>the files released and to shed a light on the

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<v Speaker 1>stories of victims who held a news conference today, President

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<v Speaker 1>Trump was asked about this in the Oval office as

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<v Speaker 1>he sat next to the President of Poland. Part of

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<v Speaker 1>his response was, quote, it's really a Democrat hoax. I

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<v Speaker 1>know that no matter what you do, it's going to

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<v Speaker 1>keep going. Unquote. Is he right, this is a Democrat hoax?

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<v Speaker 2>No, Look, this is not the Democrats. This is Donald

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<v Speaker 2>Trump's own statements when he was running for president of

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<v Speaker 2>the United States. Go back and play the clips when

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<v Speaker 2>he and other Republicans promised, promised, promised that if Donald

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<v Speaker 2>Trump became president and Republicans were in control, they were

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<v Speaker 2>going to replay release all of the Epstein files. So

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<v Speaker 2>do it. Just do it, and I don't mean release

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<v Speaker 2>part of them. Do a little blackout, a little hair,

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<v Speaker 2>a little there. That's what's keeping this story alive. And

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<v Speaker 2>you really have to ask yourself, if Donald Trump wants

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<v Speaker 2>this story to go away, the way to do that

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<v Speaker 2>is release all of the documents. And if he thinks

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<v Speaker 2>that's not going to work, what's in those files?

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<v Speaker 3>Elizabeth Warren, I'm sure we will find out. A final

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<v Speaker 3>question to you, were perhaps circling back to where we

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<v Speaker 3>started this time on the economy. One of the big

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<v Speaker 3>criticisms that we know J. Powell has based from various

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<v Speaker 3>members of Washington, including Donald Trump, and I believe in

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<v Speaker 3>yourself as well, is not cutting interest rates in the

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<v Speaker 3>face of inflation, as something Stephen Myron has been talking

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<v Speaker 3>about quite significantly as well. Can you just explain to

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<v Speaker 3>our Wall Street audience that's tuning into this program here

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<v Speaker 3>why rate cuts make sense if there's a risk of

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<v Speaker 3>exacerbating the impact of Donald Trump's tariffs on inflation.

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<v Speaker 2>So I started in two years ago saying that the

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<v Speaker 2>data on inflation showing that inflation was coming down, that

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<v Speaker 2>inflation was under better control, meant that Powell should start

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<v Speaker 2>rate cuts. I thought that was entirely appropriate. I did

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<v Speaker 2>my best to persuade him in a very public way,

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<v Speaker 2>and obviously I did not succeed. They did one rate cut,

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<v Speaker 2>but that was it. Now, what Powell himself said last

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<v Speaker 2>month was if Donald Trump had not created so much

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<v Speaker 2>chaos with the with the tariffs and what he's done

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<v Speaker 2>to the economy, that the Fed would have cut rates

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<v Speaker 2>last February. So think about that. That means that basically,

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<v Speaker 2>for six months now, Americans have been paying more on

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<v Speaker 2>their credit cards, They've been paying more on interest on

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<v Speaker 2>their car loans, and more on interest on home mortgage

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<v Speaker 2>home equity lines of credit, paying more because of the

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<v Speaker 2>chaos that Donald Trump has created with tariffs. So look,

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<v Speaker 2>I've been someone who thinks interest rates should come down,

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<v Speaker 2>but the biggest obstacle to that happening is Donald Trump himself.

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<v Speaker 2>If he wants to see interest rates come down, then

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<v Speaker 2>stop creating this kind of chaos in the economy and

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<v Speaker 2>stop this tear of fifty percent, ten percent, one hundred

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<v Speaker 2>and twenty seven percent that keeps businesses from being able

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<v Speaker 2>to plan, keeps businesses from buying new equipment and making investments,

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<v Speaker 2>keeps businesses from hiring more people. Donald Trump is the

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<v Speaker 2>number one reason in America that we do not have

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<v Speaker 2>a lower interest rate.

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<v Speaker 3>Today, Senator Warren will have to wrap up the conversation there.

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<v Speaker 3>Ranking Banking Committee Member Elizabeth Warren in Massachusetts, we thank

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<v Speaker 3>you so much for your time