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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at

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Speaker 1: noon Eastern on Applecarplay and then Broun Auto with the

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Speaker 1: Bloomberg Business App. Listen on demand wherever you get your podcasts,

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Speaker 1: or watch us live on YouTube.

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Speaker 2: In Washington, a lot of the focus here from the

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Speaker 2: White House and from Capitol Hill is instead on activity

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Speaker 2: we are seeing in many places across the country, from

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Speaker 2: the West coast at UCLA to north of US in Manhattan, Joe.

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Speaker 2: As we've seen these pro Palestinian protests roiling college campuses

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Speaker 2: and ultimately last night police having to get involved in

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Speaker 2: New York.

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Speaker 3: That's for sure. Look, no one knew exactly how that

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Speaker 3: was going to go. Students who had occupied the hall

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Speaker 3: on Columbia's campus, who were many of which were chanting

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Speaker 3: live as we were in the late edition of Balance

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Speaker 3: of Power yesterday, were cleared out. They said they would

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Speaker 3: not leave without being forced to, and they certainly were.

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Speaker 3: It was just after nine pm. If you're with us

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Speaker 3: on Bloomberg TV, you can see images of police at work.

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Speaker 3: They entered the building on a second floor there and

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Speaker 3: dozens were arrested, Kaylee led away by bus to their

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Speaker 3: next destination. They're trying to clear out the campus for

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Speaker 3: a May fifteenth graduation ceremony, and it's unclear they're going

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Speaker 3: to have the cooperation of all students on them well, and.

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Speaker 2: The university has asked the police to stay present on

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Speaker 2: the campus until May seventeenth try to get through all

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Speaker 2: of those And this just really underscore is a great

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Speaker 2: political problem for this administration, as you have seen a

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Speaker 2: Republican lawmakers, especially taking this opportunity to go to Columbia

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Speaker 2: University to speak about this issue, taking action just today

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Speaker 2: on anti semitism we expect in the House of Representatives.

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Speaker 2: And at the same time you have representatives of this

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Speaker 2: administration in the Secretary of State in the Middle East

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Speaker 2: trying to work on a East fire deal, which may

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Speaker 2: be the only thing that could help ease this tension

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Speaker 2: abroad end at home.

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Speaker 3: It's pretty remarkable and Jordan Fabian from our White House

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Speaker 3: team is framing it perfectly in his piece today talking

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Speaker 3: about the make or break moment for Joe Biden right now,

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Speaker 3: and he joins us at the table. Jordan, it's always

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Speaker 3: great to have you. Thanks for being here. This is

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Speaker 3: a fine line that Joe Biden is walking here. Of course,

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Speaker 3: Democrat needs young people to show up to be elected. Clearly,

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Speaker 3: he's dealing with the strife overseas that Kayley mentioned and

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Speaker 3: it's playing out on campuses. Now. How is the White

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Speaker 3: House responding to questions of free speech versus security for

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Speaker 3: Jewish students.

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Speaker 4: So they've issued statements through spokespeople condemning things like the

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Speaker 4: seizing of the building at Columbia, any kind of violence

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Speaker 4: or anti Semitic rhetoric. Of course, there's been pressure for

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Speaker 4: Joe Biden himself to come out and address this, both

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Speaker 4: of Jewish groups and from Republicans in Congress. It's a

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Speaker 4: tough line, as you mentioned, Joe for him to balance though,

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Speaker 4: because on one hand, he has these young voters who,

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Speaker 4: you know, it's not all young voters, but a very

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Speaker 4: vocal segment who've been out there protesting his approach to

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Speaker 4: the Israel Hamas conflict. On the other hand, you have,

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Speaker 4: you know, Jewish Americans a lot of other people who

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Speaker 4: are very concerned about this, and so threating the needle

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Speaker 4: and sort of putting out some kind of nuanced message

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Speaker 4: is something very difficult right now. So it seems like

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Speaker 4: the White House is hoping that the conflict resolves itself

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Speaker 4: during these as He's fire talks this week, and that

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Speaker 4: really takes a pin out of the protest we're seeing

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Speaker 4: across college campuses well.

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Speaker 2: And it also is worth noting, Jordan that a lot

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Speaker 2: of this, frankly, is not actually in the hands of

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Speaker 2: the president. It is up to these universities whether or

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Speaker 2: not they're going to meet demands of students in terms

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Speaker 2: of divesting from Israel, for example, And it's up to

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Speaker 2: other parties, namely Israel and AMAS as well as the

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Speaker 2: Egyptians and cutteries as to whether or not ultimately a

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Speaker 2: ceasefire agreement is reached. There's only so much that the

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Speaker 2: president is able to do, that's right.

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Speaker 4: And you make a good point, Kaylee, which is that

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Speaker 4: these protests aren't about Joe Biden, and then not really

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Speaker 4: even about the US government. It's about what the universities

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Speaker 4: are doing. And so whatever he says might not call

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Speaker 4: the concerns. And you know, the Biden campaign will tell

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Speaker 4: you that while we're seeing a lot of a protest activity,

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Speaker 4: a lot of intense feeling, this is only a you know,

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Speaker 4: small sliver of not only the US electorate of young

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Speaker 4: voters and young voters while they support a ceasefire, they

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Speaker 4: support the end of the war, they don't rank this

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Speaker 4: too highly. So there's other issues like the economy where

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Speaker 4: that's going to speak more to how they're casting their

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Speaker 4: ballot in November than what we're seeing on televisions with

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Speaker 4: the protests right now.

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Speaker 3: Is this his primary focus right now? When you look

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Speaker 3: at Joe Biden's day, if you look at the length

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Speaker 3: of time he can spend on an issue. We finally

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Speaker 3: got through this whole funding process with Ukraine and Israel,

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Speaker 3: we have fund at the government. Obviously he's got a

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Speaker 3: campaign running, but when he's in the West wing, is

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Speaker 3: this occupying his full attention at the moment?

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Speaker 5: Absolutely?

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Speaker 4: I mean he said in public speeches that oversees conflicts.

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Speaker 4: I mean not just but Ukraine, the funny package you

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Speaker 4: just mentioned, that's occupying the majority of his time. And

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Speaker 4: it's interesting because we're in this election year. Usually you

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Speaker 4: would see a president a presidential candidate out of the road,

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Speaker 4: and you're seeing him out on the road. But a

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Speaker 4: lot of is mental energy, a lot of the time

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Speaker 4: spent behind closed doors is clearly spent on resolving this conflict.

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Speaker 4: He's been on the phone with the leaders of Israel,

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Speaker 4: of Arab nations who are helping broker the ceasefire talks,

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Speaker 4: and it's clearly weighing heavily on his mind.

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Speaker 2: All right, Jordan Fabian, who covers the White House for

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Speaker 2: us here at Bloomberg, thank you so much. We want

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Speaker 2: to turn this now to our political panel, our signature

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Speaker 2: political panel, Rick Davis and Jeanie Shanzano Bloomberg Politics contributors

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Speaker 2: are with us now. Genie, as Jordan is just describing

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Speaker 2: here a president that has been on the road where

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Speaker 2: he has not been to this point, is actually on

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Speaker 2: any of these campuses that we're talking about. Does the

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Speaker 2: president need to make a trip to one of these

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Speaker 2: schools to talk to these students. Is he able to

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Speaker 2: address this issue from Afar?

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Speaker 6: You know, I think he can address it from Afar.

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Speaker 6: You know, these are issues for the college campuses themselves.

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Speaker 6: When the protests get out of hand and they turn violent,

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Speaker 6: or they are anti Semitic, or they are bigoted, if

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Speaker 6: they are, you know, in any way impeding somebody's ability

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Speaker 6: to get an education, and police are called in. Absolutely

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Speaker 6: the government comes in, but that is the police, the president,

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Speaker 6: the speaker of the House. They do not have a

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Speaker 6: role on this. College campuses have many things to address.

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Speaker 6: They've done somethings right on this, They've done something's wrong.

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Speaker 6: We all know that. But the reality is the president

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Speaker 6: doesn't need to be on a college campus to say

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Speaker 6: I denounce anti Semitism, I support peaceful protests, and that

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Speaker 6: is something that he should be saying forcefully. But he

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Speaker 6: should leave it to the officials at the college to

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Speaker 6: do what we do, which is teaching students. And if

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Speaker 6: the students need to have a lesson as it pertains

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Speaker 6: to peaceful protest, if they need to have a lesson

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Speaker 6: as it pertains to any sort of thing, that is

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Speaker 6: up to the university, the board of chancellors, or whoever

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Speaker 6: is in control. So I don't think the president needs

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Speaker 6: to go there except to give a commencement dress when invited,

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Speaker 6: as you will at Morehouse in a few weeks.

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Speaker 3: Well, I wonder, Rick Davis, if we're in for many

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Speaker 3: more larger protests. Knowing that it was congressional testimony that

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Speaker 3: really got this started. We remember, of course Harvard and

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Speaker 3: MIT more recently Columbia's leader, and now we understand that

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Speaker 3: a House committee will be summoning three more university leaders Yale, UCLA,

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Speaker 3: University of Michigan. That's May twenty three, assuming they all testify, Rick,

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Speaker 3: what will this story look like by then?

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Speaker 7: Yeah, I think that this is going to continue on

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Speaker 7: through the red hot summer, right. I mean you would

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Speaker 7: have thought, oh, everybody go home after school. You know,

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Speaker 7: this is final week in many of these institutions. Maybe

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Speaker 7: just take a breather from this. But look, I mean,

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Speaker 7: this isn't really about whether or not the universities are

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Speaker 7: investing in Israel. I mean, for heaven's sakes, it's just

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Speaker 7: such a tiny issue in the grand scheme of things.

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Speaker 7: It's what's happening on these campuses that have the President

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Speaker 7: engaged and others around the country, including Congress, and that

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Speaker 7: is rampant anti Zionism, rampant attacks on Jewish students in

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Speaker 7: the you know, and the harassment that they have to

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Speaker 7: go through. I mean, this is a cultural issue that

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Speaker 7: needs to be addressed. It is unacceptable behavior in virtually

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Speaker 7: every single instance of these protests. They are fueled by

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Speaker 7: this kind of bigoted behavior. And it is the president

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Speaker 7: of the United States. It sets the standard for our

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Speaker 7: society to live together, and this is not the way

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Speaker 7: to do it. And the universities have failed universally. If

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Speaker 7: you have a protest where they've taken over your campus

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Speaker 7: or your office buildings, you've by definition failed in your

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Speaker 7: ability to create a positive environment for all students to

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Speaker 7: learn and to get along. And so yeah, I think

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Speaker 7: this is something the president should deal with. I think

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Speaker 7: Congress legitimately should try as hard as they can to

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Speaker 7: fight back the spread of anti Semitism that's been well

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Speaker 7: reported in our country. And I think this is a

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Speaker 7: legitimate topic to be discussed, especially in the summer of

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Speaker 7: a presidential election year.

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Speaker 2: Okay, So Rick, from your point of view, if this

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Speaker 2: is really a cultural issue, this is not something that

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Speaker 2: would would have a geopolitical solution in any sense a

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Speaker 2: ceasefire agreement would it bring an end to the kind

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Speaker 2: of behavior or language that you are talking about that

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Speaker 2: has been on display here. This actually, in your mind,

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Speaker 2: is more of a domestic issue in this country, even

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Speaker 2: if it if it originated from something that happened abroad.

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Speaker 7: Sure, Look, there's no question that any improvement in the

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Speaker 7: condition on the ground in Gaza would would help calm

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Speaker 7: things down within our country and other countries around the

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Speaker 7: world are affected by this. But the reality is we

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Speaker 7: also know that ceasefires haven't lasted, and this one is not,

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Speaker 7: even if they get it, not planned to.

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Speaker 3: Be last forever.

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Speaker 7: Bibnt Yahoo, the Prime Minister of Israel's made it perfectly

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Speaker 7: clear that regardless of ceasefires, he still plans to root

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Speaker 7: out the balance of Hamas and that means ground troops

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Speaker 7: from the Idea in Gaza killing Palestinian Hamas agents. And so, yeah,

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Speaker 7: this isn't going away anytime soon. And yeah, we all

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Speaker 7: hope and pray for a ceasefire, but I don't think

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Speaker 7: anybody in this administration or in the region believes that

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Speaker 7: solves all the problems.

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Speaker 3: Rick and Jeannie Kayley is pointing me to a tweet

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Speaker 3: right now from an official at the White House, the

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Speaker 3: Deputy Communications Director, that the President will deliver remarks next

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Speaker 3: week on anti Semitism, what they call a sacred duty

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Speaker 3: to remember in more than the six million Jews who

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Speaker 3: were systematically murdered by the Nazis and their collaborators. He

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Speaker 3: will deliver a keynote address at a Holocaust memorial ceremony.

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Speaker 3: Genie is this more what you had in mind.

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Speaker 6: It's absolutely he is doing the right thing. He needs

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Speaker 6: to denounce forcefully as he always has, anti Semitism in

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Speaker 6: any form. There is no question. He needs to denounce violence, maltreatment,

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Speaker 6: mistreatment of anyone. He also needs to support the right

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Speaker 6: to peaceful protests. And I think he needs to remind

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Speaker 6: people what the heart of what these young people who

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Speaker 6: are out there aren't there about is a war that

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Speaker 6: is going to last. As Rick just talked about. They

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Speaker 6: fear for the large amount of their future and they

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Speaker 6: don't feel like their government is doing enough about it.

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Speaker 6: Should they do that peacefully, absolutely, but let's not forget

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Speaker 6: this is a devastating and awful war that is going

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Speaker 6: on down there out there, and they are asking for

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Speaker 6: a cease fire now. Protests, as they are and have

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Speaker 6: always been, have a lot of different voices in them,

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Speaker 6: but that is at the heart of this, and that

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Speaker 6: is also something that the president and the administration are

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Speaker 6: pushing for. So, you know, I think we have to

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Speaker 6: give credit to young people. Anybody who has sent a

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Speaker 6: child to college in the last ten twenty years, as

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Speaker 6: I have, and I teach it at college. The motto

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Speaker 6: at almost every one of these American universities is changed

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Speaker 6: the world. That is what we teach the students to do,

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Speaker 6: to think, to act, and so when people go out

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Speaker 6: to make a change in their world peacefully, we support that.

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Speaker 6: When they get out of line, they have to accept

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Speaker 6: those consequences, and absolutely they should. What happened in New

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Speaker 6: York overnight had to happen. But this is the reality

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Speaker 6: we're living in. And the President is right to speak

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Speaker 6: on anti Semitism, just as I hope he speaks about

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Speaker 6: the right to peace believe protests and does his job,

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Speaker 6: which is pushing for a ceasefire in Gaza and helping

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Speaker 6: the civilians over there who are suffering enormously on both

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Speaker 6: sides of the of the aisle and including and most

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Speaker 6: importantly the hostages.

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Speaker 2: Ginny, we have less than a minute left. But as

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Speaker 2: you talk about young people changing the world, the world

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Speaker 2: also can change depending on the way people vote in November.

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Speaker 2: From your vantage point, is it more likely that these

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Speaker 2: young voters will just not vote at all, or that

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Speaker 2: they actually would be willing to turn out and vote

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Speaker 2: for Donald Trump rather than Joe Biden.

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Speaker 6: On this issue? You know, they don't see, at least

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Speaker 6: as far as we can tell so far Donald Trump

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Speaker 6: as a viable option, because of course he's somebody who

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Speaker 6: just you know, last weekend went out and talked about

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Speaker 6: the context of Charlottesville and the Nazis that were out there.

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Speaker 6: So they don't see him as a option, so they

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Speaker 6: may just stay home. But you know, this is something

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Speaker 6: that we have to wait and see. It's still not

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Speaker 6: the most important issue on the minds of most people

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Speaker 6: in this young age group. That remains the economy.

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Speaker 3: Genie Shanzino and Rick Davis. This is why they are

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Speaker 3: our signature panel. Thank you for the insights.

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Speaker 1: You're listening to the Bloomberg Balance of Power podcast kens

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Speaker 1: just live weekdays at noon Eastern on Applecarplay and then

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Speaker 1: rod Oro with the Bloomberg Business App. You can also

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Speaker 1: listen live on Amazon Alexa from our flagship New York station,

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Speaker 1: Just say Alexa Play. Bloomberg eleven thirty.

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Speaker 3: Welcome you. Because we saw it coming. It was right

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Speaker 3: at this time yesterday. Nathan Dean was sitting in this

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Speaker 3: chair and we were talking about the possibility of rescheduling

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Speaker 3: cannabis being announced maybe even that day, And it happened

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Speaker 3: about five minutes after Nathan walked out of the room,

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Speaker 3: and here we are this morning, on this first of

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Speaker 3: May afternoon, forgive me watching. Chuck Schumer, the Senate majority leader,

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Speaker 3: announced plans to reintroduce the Federal Cannabis Administration and Opportunity Act.

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Speaker 3: This would be to full blown legalize marijuana in this country,

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Speaker 3: removing cannabis from the Controlled Substances Act, which is something

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Speaker 3: that polling shows a majority of Americans actually support, but

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Speaker 3: no one sees happening quite yet. We're going to go

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Speaker 3: one step at a time here because what happened yesterday

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Speaker 3: is very important. You can read about it on the

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Speaker 3: terminal the Justice Department recommending cannabis be reclassified as less risky,

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Speaker 3: a very important step for cannabis businesses here who are

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Speaker 3: also waiting for the Safe Banking Act they can't use

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Speaker 3: banks either. To pass and this is of course a

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Speaker 3: bunch of states now that have done this, that have

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Speaker 3: legalized marijuana. One Congressman who was ahead of the curve

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Speaker 3: on this issue, and it was way ahead, is Earl

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Speaker 3: Blumenauer of Oregon. Of course, was also ahead on this issues,

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Speaker 3: the founder and co chair now of the Congressional Cannabis Caucus,

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Speaker 3: and he was out with a statement on rescheduling yesterday,

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Speaker 3: marijuana was scheduled more than fifty years ago, he writes,

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Speaker 3: based on stigma, not science, and Congressman joins us now

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Speaker 3: live from Capitol hillster, I appreciate your being with us.

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Speaker 3: I suspect this is a major development for you and

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Speaker 3: the work that you've put into this. But I'd like

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Speaker 3: to start at the beginning here. If it was based

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Speaker 3: on stigma not science, where did that come from? As

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Speaker 3: we hear tobacco companies, Was it racism or was it both?

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Speaker 8: It is the aftermath of Richard Nixon's failed War on drugs.

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Speaker 5: He weaponized cannabis in an.

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Speaker 8: Effort to gain political advantage, jamonizing young black men, young

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Speaker 8: people generally, and being able to beat the drum of cannabis.

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Speaker 5: It launched this fifty year war on.

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Speaker 8: Drugs that had drugs terrible consequences for a million young

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Speaker 8: black men. It has stimied efforts to be able to

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Speaker 8: move it forward, but the people insisted that they were

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Speaker 8: going to take it in their own hands.

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Speaker 5: We've now seen.

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Speaker 8: Thirty eight states have legalized medical cannabis. We have twenty

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Speaker 8: eight states that have fully legalized adult use. Many of

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Speaker 8: these are by a vote of the people. We now

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Speaker 8: have over seventy percent of the public that thinks that

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Speaker 8: cannabis should be completely legalized.

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Speaker 5: This decision by.

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Speaker 8: The Biden administration to deal with reality and schedule it

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Speaker 8: as Scheduled three rather than Schedule.

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Speaker 5: One is really extraordinarily important.

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Speaker 8: It's going to allow state legal cannabis businesses to deduct

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Speaker 8: their business expenses for tax purposes. Right now they pay

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Speaker 8: two three times more than typical. So this is going

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Speaker 8: to be earth shattering. It's going to lead, i think,

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Speaker 8: to the Safe Banking Act through the Senate in near future,

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Speaker 8: and it's starting the revolution.

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Speaker 3: All of those would be big developments here. Your colleague

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Speaker 3: Steve Scalise, the Majority leader, sees things rather differently, as

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Speaker 3: of course, you know, Congressman. He had this to say

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Speaker 3: after the development on rescheduling, we need to be reducing

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Speaker 3: the number of people that use drugs and not increasing

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Speaker 3: that number. We should not be making matters worse. He said,

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Speaker 3: where's the disagreement here? Because you're talking about the war

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Speaker 3: on drugs and he is as well. Congressman, how would

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Speaker 3: you respond to, Steve Scalise?

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Speaker 8: The states that have the most draconian drug laws have

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Speaker 8: not reduced the use. In fact, states that don't have

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Speaker 8: a system like we have in Oregon actually.

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Speaker 5: Puts more risk for youngsters.

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Speaker 8: Somebody who's getting their marijuana from a corner drug dealer,

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Speaker 8: Nobody checks ID, nobody deals with a license that they lose,

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Speaker 8: and it's available in every state.

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Speaker 5: Steve is just in the ozone.

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Speaker 8: In fact, the majority of people in his own state

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Speaker 8: support legalization, and having more draconian enforcement is not going

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Speaker 8: to make a difference at all, other than it will

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Speaker 8: disrupt some lives. This is an industry that now has

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Speaker 8: almost a half million people. The industry is forty billion

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Speaker 8: dollars and that's just the legal business. So people like

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Speaker 8: Steve are just out in the ozone. They haven't been

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Speaker 8: able to stop it. Sessions, I'm sorry, not at all.

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Speaker 3: It's just funny that we know. I'm talking to a

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Speaker 3: lawmaker about this. Usually you say it's the people smoking

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Speaker 3: potter in the ozone. But you're on the Ways and

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Speaker 3: Means Committee congres This is a cultural issue, it's a

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Speaker 3: business issue, and I think you're making the point here.

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Speaker 3: This is also a taxation issue. As Chuck Schumer floats

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Speaker 3: this federal legalization effort here, I know that's not about

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Speaker 3: to happen. I'm just curious what would it mean. Do

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Speaker 3: you have a number? What would it mean for revenues

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Speaker 3: into the federal government if you legalize pot.

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Speaker 8: Well, first of all, having the reschedule to schedule three

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Speaker 8: means that it changes the equation for people with these businesses.

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Speaker 8: They're not going to pay two, three, four times the

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Speaker 8: typical text. It means it's going to be easier to comply.

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Speaker 8: It's going to take money losing propositions and make them money.

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Speaker 5: Making propositions.

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Speaker 8: This is going to mean hundreds of billions of dollars

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Speaker 8: in the foreseeable future if we get this right. And

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Speaker 8: of course, the health benefits are undeniable. That's why we

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Speaker 8: have thirty eight states that have not waited for the

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Speaker 8: federal government. They've taken medical marijuana in their own hands.

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Speaker 8: So this is going to be revolutionary.

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Speaker 3: Talk about the amount of support that this has around

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Speaker 3: the country, Congressman, and apparently in your own chamber, is

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Speaker 3: this something you talk about with your fellow lawmakers?

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Speaker 8: Yes, I mean I've gone and beaten the drum. For example,

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Speaker 8: in the Safe Banking Act, we had three hundred and

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Speaker 8: twenty one representatives in both parties that voted for it twice.

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Speaker 5: In fact, it's past the House seven times.

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Speaker 8: What's going to happen with what Chuck Schumer, Ron Wyden,

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Speaker 8: Corey Booker shared Brown Congressman Danes are Senator Danes from Montana.

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Speaker 8: They're going to be putting this forward and you're going

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Speaker 8: to see that it will get probably sixty sixty five votes.

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Speaker 8: This is the most significant whip count that you're going

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Speaker 8: to get. I think it's going to asher in a

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Speaker 8: whole new era of rational drug policy.

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Speaker 3: Earl bloominare Congressman from Oregon's third congressional district. We thank

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Speaker 3: you for being with us, sir, and we'll have more

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Speaker 3: details as this raps. It could take the rest of

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Speaker 3: the year, based on what we understand as a comment

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Speaker 3: period and a final approval that needs to take place. Here,

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Speaker 3: let's assemble the panel for their take on this and

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Speaker 3: some of the other stories popping today in Washington. Rick

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Speaker 3: Davis is here along with Genie Shanzino, our signature panel,

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Speaker 3: just like that Bloomberg Politics contributors. Rick, this is not

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Speaker 3: a Republican issue typically, and I just referenced what Steve

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Speaker 3: Scalise said in the wake of this news here Chuck Schumer,

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Speaker 3: Corey Booker, and others. Right now, Ron Wyden Democrats in

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Speaker 3: the Senator talking about their bill to legalize marijuana. But

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Speaker 3: this seems to be something that might be a bridge

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Speaker 3: too far for your party. What do you think about

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Speaker 3: what's happening right now.

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Speaker 7: Yeah, there's still quite a few Senators and congressmen Republicans

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Speaker 7: who agree with Steven Sclave, which is, we should be

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Speaker 7: not encouraging drug use in America. We should be encouraging

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Speaker 7: less drug use in America. And I don't think anybody

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Speaker 7: who lives in a state that has legalized marijuana, either

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Speaker 7: for recreational purposes or for medicinal purposes, don't think that

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Speaker 7: that hasn't increased the risk on the road. That's pernicious

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Speaker 7: effect of walking down the street and getting a secondary

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Speaker 7: high just to go on from meeting to meeting in

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Speaker 7: New York City these days. And the reality of it

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Speaker 7: is is no one has really done empirical studies around

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Speaker 7: the long term health effects of marijuana. And so I

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Speaker 7: just think for the purposes of the debate, sure, if

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Speaker 7: it's going to be happening before it it's an age

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Speaker 7: old Washington slogan, But the reality too, Is that just

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Speaker 7: because a lot of wrong has been done through marijuana

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Speaker 7: policy in the past doesn't mean that it expunges the

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Speaker 7: record in the future.

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Speaker 3: Well, we're talking about a couple of different things here, Genie.

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Speaker 3: Rescheduling is one. Safe banking is an whether you know,

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Speaker 3: in the case of rescheduling, you're allowing these existing companies

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Speaker 3: that do have employees to actually take those tax deductions,

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Speaker 3: allowing them through safe banking, which has not yet passed,

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Speaker 3: to use the banking system. Both of those different than

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Speaker 3: what Chuck Schumer is talking about now, and actually legalizing

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Speaker 3: this on the federal level. This is something that Joe

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Speaker 3: Biden promised though on the campaign trail. Is this good politics?

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Speaker 3: Rich's painted the picture for us. You walk out the door,

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Speaker 3: god knows you're in New York, and you get punched

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Speaker 3: in the face by cannabis smoke wherever you go. This

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Speaker 3: is I guess this is the new reality. Should this

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Speaker 3: the government need to catch up with it?

435
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Speaker 6: Yeah, you know, I think Joe Biden is one of

436
00:24:37,440 --> 00:24:40,439
Speaker 6: the most moderate Democrats out there on this issue. He

437
00:24:40,520 --> 00:24:44,840
Speaker 6: obviously has a personal tie to the issue of drug abuse,

438
00:24:44,880 --> 00:24:48,680
Speaker 6: and it's something that helps explain, although not fully why

439
00:24:48,760 --> 00:24:52,880
Speaker 6: he has long been against de Krimlin decriminalization or legalization,

440
00:24:53,880 --> 00:24:56,600
Speaker 6: but he also wants to take steps, which is what

441
00:24:56,640 --> 00:24:59,560
Speaker 6: the administration is doing now to reduce penalties.

442
00:24:59,680 --> 00:25:00,360
Speaker 9: Right.

443
00:25:00,440 --> 00:25:03,560
Speaker 6: So you know, these are the sort of small steps

444
00:25:03,560 --> 00:25:06,280
Speaker 6: that he is taking and trying to thread this needle,

445
00:25:06,720 --> 00:25:09,439
Speaker 6: and we have to see where it goes. But you know,

446
00:25:09,520 --> 00:25:12,919
Speaker 6: the reality here is that there's only so much the

447
00:25:12,960 --> 00:25:16,840
Speaker 6: President and the administration can do. If you want to

448
00:25:16,880 --> 00:25:21,000
Speaker 6: get real traction on this, it's got to come from Congress.

449
00:25:21,080 --> 00:25:23,639
Speaker 6: Just what you're showing in terms of Chuck Schumer, the

450
00:25:23,680 --> 00:25:27,080
Speaker 6: Controlled Substance Act that's got to be changed by Congress.

451
00:25:27,359 --> 00:25:30,520
Speaker 6: The criminal Code got to be changed by Congress. And

452
00:25:30,600 --> 00:25:32,800
Speaker 6: so there is going to be a I think a

453
00:25:32,920 --> 00:25:36,600
Speaker 6: really heated, interesting debate on this issues for some of

454
00:25:36,640 --> 00:25:39,159
Speaker 6: the reasons you just laid out and Rick was talking about,

455
00:25:39,520 --> 00:25:43,280
Speaker 6: because we've heard a lot from the pro legalization side

456
00:25:43,359 --> 00:25:46,320
Speaker 6: so far and a little less from the anti so

457
00:25:46,800 --> 00:25:49,560
Speaker 6: I think that's going to be happening. But again, Joe Biden,

458
00:25:49,640 --> 00:25:53,480
Speaker 6: these are small, important steps, but they're still small and

459
00:25:53,600 --> 00:25:56,040
Speaker 6: allow him to walk this more moderate line.

460
00:25:56,920 --> 00:25:57,120
Speaker 1: Yeah.

461
00:25:57,119 --> 00:25:59,119
Speaker 3: Well, and the word though, Rick, is that you know

462
00:26:00,640 --> 00:26:05,560
Speaker 3: the data here are stubborn. Most research shows that legalizing

463
00:26:05,600 --> 00:26:11,000
Speaker 3: marijuana has not actually increased usage. Joe Biden just doesn't

464
00:26:11,040 --> 00:26:13,760
Speaker 3: like the ideas from a different generation, and this just

465
00:26:13,800 --> 00:26:15,840
Speaker 3: doesn't seem to be something that he wants to speak

466
00:26:15,840 --> 00:26:18,840
Speaker 3: about in the way that people expected during the campaign.

467
00:26:19,240 --> 00:26:22,000
Speaker 3: Does he need to be consistent on this? Does he

468
00:26:22,040 --> 00:26:24,159
Speaker 3: put Kamala Harris in front of the issue? What do

469
00:26:24,160 --> 00:26:25,800
Speaker 3: you do in a re election campaign?

470
00:26:26,840 --> 00:26:30,240
Speaker 7: Yeah, I think it's the difference between being the president

471
00:26:30,359 --> 00:26:32,320
Speaker 7: United States and having a set of trend and a

472
00:26:32,600 --> 00:26:38,440
Speaker 7: moral center for the country, versus being a candidate and

473
00:26:39,080 --> 00:26:41,760
Speaker 7: frankly needing to shore up the base vote he's got,

474
00:26:41,960 --> 00:26:46,760
Speaker 7: especially within the party of young people. And when you

475
00:26:46,800 --> 00:26:49,439
Speaker 7: pull young people, this is a lopsided issue, right. They

476
00:26:49,480 --> 00:26:51,800
Speaker 7: don't see the harm, they don't see the foul, they

477
00:26:51,800 --> 00:26:55,920
Speaker 7: haven't been historically damaged by it, and so for them

478
00:26:56,240 --> 00:26:58,480
Speaker 7: this is a no brainer. And anybody gets in a

479
00:26:58,480 --> 00:27:01,119
Speaker 7: way of this is just thinking about the past, not

480
00:27:01,200 --> 00:27:05,760
Speaker 7: the future. And so it's a real hard line that

481
00:27:06,920 --> 00:27:10,320
Speaker 7: president has to pass through. And I'd say, you know,

482
00:27:10,440 --> 00:27:13,280
Speaker 7: this is not a surprise to me that the administration

483
00:27:13,920 --> 00:27:16,359
Speaker 7: would be changing the classification of this drug. You know,

484
00:27:16,400 --> 00:27:20,120
Speaker 7: six months before presidential election. Not saying it's a quid

485
00:27:20,119 --> 00:27:23,679
Speaker 7: pro quo, but it certainly does soften up that eighteen

486
00:27:23,680 --> 00:27:26,600
Speaker 7: to twenty five year old base within his party who's

487
00:27:26,640 --> 00:27:29,399
Speaker 7: been reluctant to be enthusiastic about his presidency.

488
00:27:30,480 --> 00:27:33,520
Speaker 3: I do wonder about that genie and our remaining couple

489
00:27:33,520 --> 00:27:36,159
Speaker 3: of moments here you're on campus, and the story on

490
00:27:36,240 --> 00:27:38,480
Speaker 3: campus most recently has been a not good one for

491
00:27:38,560 --> 00:27:41,560
Speaker 3: Joe Biden. As we watched police break up another encampment

492
00:27:41,640 --> 00:27:44,720
Speaker 3: last night, three hundred people arrested at Columbia University. Are

493
00:27:44,760 --> 00:27:47,919
Speaker 3: you hearing talk about this? Is this a front burner

494
00:27:47,960 --> 00:27:50,359
Speaker 3: issue for college students right now or are they looking

495
00:27:50,840 --> 00:27:52,040
Speaker 3: at the war in Gaza.

496
00:27:53,520 --> 00:27:56,479
Speaker 6: You know, when you look at the polls, the younger

497
00:27:56,560 --> 00:27:59,959
Speaker 6: people are, the more supportive they are about making marijuana

498
00:28:00,080 --> 00:28:05,040
Speaker 6: or cannabis accessible decriminalizing it. There's no question there a

499
00:28:05,080 --> 00:28:08,840
Speaker 6: lot of support, but it's not something we've seen where

500
00:28:08,880 --> 00:28:12,439
Speaker 6: people go out and vote on. Certainly when it's on

501
00:28:12,520 --> 00:28:15,359
Speaker 6: a state level ballot, we've seen people who don't traditionally

502
00:28:15,400 --> 00:28:18,800
Speaker 6: go out vote on it. But it's not a federal

503
00:28:18,920 --> 00:28:22,399
Speaker 6: level something that we've seen really make a change. So

504
00:28:22,680 --> 00:28:25,879
Speaker 6: I am not convinced that this is something that will

505
00:28:25,960 --> 00:28:29,920
Speaker 6: help an awful lot. Do they support it absolutely? Will

506
00:28:29,960 --> 00:28:31,240
Speaker 6: it get them out to vote?

507
00:28:31,400 --> 00:28:31,480
Speaker 9: No?

508
00:28:32,000 --> 00:28:37,200
Speaker 6: The economy reigns stream when it comes to young people, jobs, inflation,

509
00:28:37,280 --> 00:28:39,800
Speaker 6: the economy. There's a lot of interest in GAZA, but

510
00:28:39,920 --> 00:28:42,280
Speaker 6: even that is lower when you look at the most

511
00:28:42,280 --> 00:28:43,320
Speaker 6: important issue goals.

512
00:28:44,360 --> 00:28:46,720
Speaker 3: I just think that's fascinating, after you know, so many

513
00:28:46,760 --> 00:28:49,479
Speaker 3: years of people speculating on what the impact of something

514
00:28:49,560 --> 00:28:52,640
Speaker 3: like this would be, it's still just young people want

515
00:28:52,640 --> 00:28:55,040
Speaker 3: to be able to buy a house, right. It's pretty

516
00:28:55,040 --> 00:28:57,000
Speaker 3: simple sometimes when it comes to politics.

517
00:29:00,440 --> 00:29:03,560
Speaker 1: If you're listening to the Bloomberg Balance of Power podcast,

518
00:29:03,840 --> 00:29:07,040
Speaker 1: catch Just Live weekdays at noon Eastern on Appo, CarPlay

519
00:29:07,040 --> 00:29:09,680
Speaker 1: and then Proud Otto with the Bloomberg Business app Listen

520
00:29:09,760 --> 00:29:12,800
Speaker 1: on demand wherever you get your podcasts, or watch us

521
00:29:12,840 --> 00:29:16,120
Speaker 1: live on YouTube.

522
00:29:16,480 --> 00:29:19,400
Speaker 2: Here in Washington, just a little ways down the road

523
00:29:19,440 --> 00:29:21,560
Speaker 2: from where Joe and I right now, we're getting ready

524
00:29:22,280 --> 00:29:24,320
Speaker 2: to breed a statement from the Federal Reserve and ultimately

525
00:29:24,360 --> 00:29:28,840
Speaker 2: have a press conference from Chairman Powell. Joe and there's

526
00:29:28,880 --> 00:29:31,520
Speaker 2: a real possibility that despite what we heard just weeks

527
00:29:31,560 --> 00:29:34,160
Speaker 2: ago after a hot CPI report from President Biden who

528
00:29:34,200 --> 00:29:37,520
Speaker 2: said there will be rate cuts this year that the

529
00:29:37,560 --> 00:29:40,960
Speaker 2: Chairman could indicate in fact there very well may not.

530
00:29:40,880 --> 00:29:43,720
Speaker 3: Be, yeah, or could there be a hike this year

531
00:29:43,840 --> 00:29:46,600
Speaker 3: still to come. I think they're thirty percent odds on

532
00:29:46,640 --> 00:29:49,200
Speaker 3: that at the moment, as we wait to hear from

533
00:29:49,240 --> 00:29:51,120
Speaker 3: what we're told will be a much more hawkish j.

534
00:29:51,280 --> 00:29:54,680
Speaker 3: Powey's got a point to prove today, Kaylee, and it's

535
00:29:54,720 --> 00:29:57,920
Speaker 3: based on the data. It's very hard to deny what's

536
00:29:57,960 --> 00:30:00,560
Speaker 3: happening here in this economy, and it's something we wanted

537
00:30:00,560 --> 00:30:02,640
Speaker 3: to spend some time with Lindsay Owens to talk about

538
00:30:02,640 --> 00:30:05,680
Speaker 3: before we turn things over to our special FED coverage.

539
00:30:05,680 --> 00:30:09,320
Speaker 3: Lindsay is an economist the Groundwork Collaborative where she's executive

540
00:30:09,360 --> 00:30:11,760
Speaker 3: director and Lindsay, it's great to have you back. How

541
00:30:11,760 --> 00:30:15,920
Speaker 3: concerned are you, knowing your background in economics here you

542
00:30:15,960 --> 00:30:18,440
Speaker 3: have a slightly more progressive view and the idea of

543
00:30:18,480 --> 00:30:22,120
Speaker 3: a more hawkish FED at this stage when you consider

544
00:30:22,160 --> 00:30:25,480
Speaker 3: the impact that these rates have had higher for longer

545
00:30:25,800 --> 00:30:28,760
Speaker 3: on the housing market, creating a higher barrier for entry

546
00:30:28,760 --> 00:30:32,000
Speaker 3: for young people, more potential risk for the job market.

547
00:30:32,240 --> 00:30:33,240
Speaker 3: What are we about to hear?

548
00:30:35,080 --> 00:30:35,360
Speaker 9: Yeah?

549
00:30:35,400 --> 00:30:38,240
Speaker 10: Absolutely, I mean, I think it's pretty clear that AL

550
00:30:38,360 --> 00:30:42,240
Speaker 10: is unlikely to veer off his higher for longer strategy,

551
00:30:42,800 --> 00:30:46,880
Speaker 10: you know, holding rate study for now, but potentially coming

552
00:30:46,920 --> 00:30:51,280
Speaker 10: off some of the earlier projections for September rate hikes.

553
00:30:51,960 --> 00:30:53,440
Speaker 10: But you know, the question I think we have to

554
00:30:53,480 --> 00:30:56,240
Speaker 10: ask ourselves here is what are the benefits of a

555
00:30:56,320 --> 00:30:59,520
Speaker 10: higher for longer strategy and what are the risks? And

556
00:30:59,600 --> 00:31:03,120
Speaker 10: I do I think given the areas where we're seeing

557
00:31:03,200 --> 00:31:07,840
Speaker 10: sticky inflation, it's really unclear that the higher for longer

558
00:31:07,880 --> 00:31:10,600
Speaker 10: strategy has a lot of payoffs. You know, when it

559
00:31:10,640 --> 00:31:13,200
Speaker 10: comes to the housing market, when it comes to energy costs,

560
00:31:13,440 --> 00:31:16,320
Speaker 10: when it comes to auto insurance, which is another one

561
00:31:16,360 --> 00:31:19,360
Speaker 10: of the areas where we're seeing more inflation than we'd like,

562
00:31:20,040 --> 00:31:23,680
Speaker 10: none of those are really responsive to the Fed's interest

563
00:31:23,720 --> 00:31:26,120
Speaker 10: rate policy. And in fact, when it comes to the

564
00:31:26,120 --> 00:31:28,480
Speaker 10: housing market, you know, it may well be the case

565
00:31:28,520 --> 00:31:33,440
Speaker 10: that the federal reserves policies are exacerbating some of the

566
00:31:33,480 --> 00:31:36,520
Speaker 10: pricing that we're seeing in the housing market. So I

567
00:31:36,560 --> 00:31:39,080
Speaker 10: think the evidence that the higher for longer strategy is

568
00:31:39,080 --> 00:31:41,120
Speaker 10: going to sort of bring down the last mile of

569
00:31:41,120 --> 00:31:42,200
Speaker 10: inflation is thin.

570
00:31:42,920 --> 00:31:45,120
Speaker 9: And I think the evidence that the higher for longer.

571
00:31:45,120 --> 00:31:50,160
Speaker 10: Strategy is starting to post some considerable costs, is getting

572
00:31:50,200 --> 00:31:51,120
Speaker 10: stronger by the day.

573
00:31:52,720 --> 00:31:54,920
Speaker 2: Okay, Lensy, your point is well taken that a lot

574
00:31:54,920 --> 00:31:58,280
Speaker 2: of the stickiness is where you see most directly, interest

575
00:31:58,320 --> 00:32:01,840
Speaker 2: rate polony policy transmitting as in higher rates, higher mortgage rates.

576
00:32:01,840 --> 00:32:04,280
Speaker 2: That has ripple effects throughout the housing market for example.

577
00:32:04,480 --> 00:32:06,760
Speaker 2: But isn't the risk of not keeping rates higher for

578
00:32:06,880 --> 00:32:09,959
Speaker 2: longer that rates going down or the expectation that they

579
00:32:10,000 --> 00:32:13,960
Speaker 2: will go down further fuels demand, gets people out there spending,

580
00:32:14,000 --> 00:32:17,200
Speaker 2: and all of those different areas of the economy where

581
00:32:17,200 --> 00:32:20,360
Speaker 2: we're not talking about inflation getting sticky. Suddenly do start

582
00:32:20,400 --> 00:32:24,320
Speaker 2: to see prices spiking higher again, isn't isn't that really

583
00:32:24,720 --> 00:32:25,280
Speaker 2: the concern?

584
00:32:26,640 --> 00:32:26,840
Speaker 5: Yeah?

585
00:32:26,840 --> 00:32:27,440
Speaker 9: Absolutely.

586
00:32:27,440 --> 00:32:30,800
Speaker 10: The Fed is trying to you know, handle the upside

587
00:32:30,880 --> 00:32:34,800
Speaker 10: risk of inflation sort of you know, picking back up

588
00:32:34,840 --> 00:32:37,160
Speaker 10: considerably right then they're worried about that.

589
00:32:37,960 --> 00:32:38,200
Speaker 5: You know.

590
00:32:38,280 --> 00:32:41,800
Speaker 10: I think we've seen a lot of inflation come down

591
00:32:41,840 --> 00:32:44,520
Speaker 10: because of transitory factors and also because.

592
00:32:44,240 --> 00:32:47,040
Speaker 9: Of supply coming back online. I don't think.

593
00:32:46,960 --> 00:32:50,360
Speaker 10: There's huge risk of you know, a big increase in

594
00:32:50,400 --> 00:32:54,160
Speaker 10: consumption here that's going to have inflation sort of unmooring

595
00:32:54,880 --> 00:32:57,719
Speaker 10: and sort of spiraling out of control. So I'm definitely

596
00:32:57,760 --> 00:33:01,560
Speaker 10: in the camp of someone who actually thinks coming off

597
00:33:01,640 --> 00:33:05,080
Speaker 10: interest rate hikes at this point, you know, is smart.

598
00:33:05,600 --> 00:33:08,239
Speaker 10: You know, I would like to see cuts frankly, you know,

599
00:33:08,280 --> 00:33:11,080
Speaker 10: given given where we are in the cycle here, but

600
00:33:11,240 --> 00:33:12,720
Speaker 10: you know, we'll have to see sort of where Pal

601
00:33:12,840 --> 00:33:14,920
Speaker 10: is at two o'clock. But you know at the end

602
00:33:14,920 --> 00:33:16,960
Speaker 10: of the day, and he's signaling that he's going to

603
00:33:17,000 --> 00:33:18,840
Speaker 10: stick with the higher for longer strategy.

604
00:33:18,880 --> 00:33:20,000
Speaker 9: And I think.

605
00:33:19,880 --> 00:33:22,960
Speaker 10: You know, we're all sort of watching this experiment play

606
00:33:23,000 --> 00:33:25,320
Speaker 10: out in real time of the FED trying to chase

607
00:33:25,360 --> 00:33:28,800
Speaker 10: inflation down to two percent, and you know, hoping that

608
00:33:28,840 --> 00:33:32,560
Speaker 10: they'll be successful. But increasingly, you know, when we parse

609
00:33:32,640 --> 00:33:35,480
Speaker 10: the individual data, it really doesn't look like this last

610
00:33:35,480 --> 00:33:38,280
Speaker 10: mile is going to be responsive to interest rate hikes.

611
00:33:38,320 --> 00:33:39,960
Speaker 9: And so I think we're in a real predicament here.

612
00:33:41,000 --> 00:33:45,280
Speaker 3: Does that last mile last through November? Because we've talked

613
00:33:45,320 --> 00:33:48,920
Speaker 3: a lot about the political implications of interest rate changes

614
00:33:49,000 --> 00:33:51,560
Speaker 3: around the election, and Joe Biden's got his eyes on

615
00:33:51,640 --> 00:33:53,680
Speaker 3: about six months from now, where are we? Where are

616
00:33:53,680 --> 00:33:54,280
Speaker 3: we in the cycle?

617
00:33:54,360 --> 00:33:57,080
Speaker 9: Then lindsay, yeah, I mean, you're absolutely right.

618
00:33:57,120 --> 00:34:01,360
Speaker 10: The political consequences of this really punishing interest rate environment

619
00:34:01,440 --> 00:34:05,560
Speaker 10: are considerable. American's top concerned about the economy right now

620
00:34:05,840 --> 00:34:09,560
Speaker 10: is high prices, but they're also concerned about high borrowing costs.

621
00:34:09,800 --> 00:34:14,120
Speaker 10: They're concerned about mortgage rates, which are incredibly high right now.

622
00:34:14,200 --> 00:34:16,400
Speaker 9: I mean, look, you know, I think sometimes.

623
00:34:15,960 --> 00:34:19,000
Speaker 10: We get you know, focused on sort of watching mortgage

624
00:34:19,080 --> 00:34:21,640
Speaker 10: rates tick up and down. But you know, let's think

625
00:34:21,640 --> 00:34:24,560
Speaker 10: about what this means in real terms for families. I mean,

626
00:34:24,880 --> 00:34:27,840
Speaker 10: I myself would be paying twice as much per month

627
00:34:28,360 --> 00:34:31,480
Speaker 10: in today's interest rate environment then in the interest rate

628
00:34:31,560 --> 00:34:34,640
Speaker 10: environment in which I bought my home. That is a

629
00:34:34,719 --> 00:34:39,640
Speaker 10: considerable difference, right, Twice twice the monthly mortgage payment. Right,

630
00:34:39,719 --> 00:34:42,359
Speaker 10: So this is pushing folks, you know, out of home

631
00:34:42,400 --> 00:34:46,080
Speaker 10: ownership for years, right, Folks not being able to jump

632
00:34:46,120 --> 00:34:49,400
Speaker 10: in to the mortgage market. So the effects of this

633
00:34:49,480 --> 00:34:52,279
Speaker 10: are considerable on the economy. Of course, the economy is

634
00:34:52,360 --> 00:34:55,120
Speaker 10: top of mind as folks head to the ballot box

635
00:34:55,520 --> 00:34:57,960
Speaker 10: in November, and we also have to look at some

636
00:34:58,040 --> 00:35:00,600
Speaker 10: of the other things that are influenced by the high

637
00:35:00,640 --> 00:35:03,400
Speaker 10: interest rate environment. I mean, you know, Americans are holding

638
00:35:03,440 --> 00:35:06,960
Speaker 10: a huge amount of debt right now. Aprs on credit

639
00:35:07,000 --> 00:35:10,759
Speaker 10: cards are sky high, and credit card companies are you know,

640
00:35:10,880 --> 00:35:14,440
Speaker 10: really in some ways hiding behind high federal fund.

641
00:35:14,320 --> 00:35:17,040
Speaker 9: Rates to keep aprs really higher than they need to be.

642
00:35:17,200 --> 00:35:21,600
Speaker 10: So I think this is affecting consumers, you know, most consumers,

643
00:35:21,680 --> 00:35:25,160
Speaker 10: many consumers in America every day the high cost of borrowing.

644
00:35:25,200 --> 00:35:28,600
Speaker 10: And it's absolutely the case that getting some relief on borrowing,

645
00:35:29,120 --> 00:35:31,600
Speaker 10: you know, I think would be really helpful for President

646
00:35:31,600 --> 00:35:32,600
Speaker 10: Biden before November.

647
00:35:34,360 --> 00:35:36,319
Speaker 2: Lindsay, we have just about a minute left before we

648
00:35:36,360 --> 00:35:38,440
Speaker 2: hand things over to our special coverage, in about an

649
00:35:38,480 --> 00:35:41,120
Speaker 2: hour until Chairman Pal walks up to that podium to

650
00:35:41,160 --> 00:35:43,880
Speaker 2: deliver the press conference. If you had one question to

651
00:35:43,920 --> 00:35:45,200
Speaker 2: ask him today, what would it be?

652
00:35:47,040 --> 00:35:49,960
Speaker 10: I mean, look, the question I have is, you know,

653
00:35:50,200 --> 00:35:53,640
Speaker 10: are we really getting payoff from higher for longer? What

654
00:35:53,760 --> 00:35:55,880
Speaker 10: is your evidence that higher for longer is going to

655
00:35:55,920 --> 00:35:58,279
Speaker 10: get that last mile of inflation down, that is going

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00:35:58,360 --> 00:36:01,000
Speaker 10: to get housing costs down, is going to get energy

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00:36:01,000 --> 00:36:04,600
Speaker 10: costs down, that is going to get auto insurance premiums down.

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00:36:05,560 --> 00:36:08,640
Speaker 10: I think you've really got to ask yourself, you know,

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00:36:08,719 --> 00:36:10,960
Speaker 10: sort of as the juice worth of squeeze here in

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00:36:11,040 --> 00:36:12,520
Speaker 10: the high interest rate environment.

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00:36:12,560 --> 00:36:13,920
Speaker 9: And then if I got a follow up question.

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00:36:14,440 --> 00:36:17,640
Speaker 10: You know, I would sort of be interested in hearing

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00:36:17,760 --> 00:36:22,359
Speaker 10: him articulate the consequences of higher for longer, because I would.

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00:36:22,360 --> 00:36:25,279
Speaker 10: I hope he's well aware of the consequences here for

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00:36:25,320 --> 00:36:26,200
Speaker 10: American families.

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00:36:27,800 --> 00:36:31,279
Speaker 2: All right, Lindsay Owen's Groundwork Collaborative executive director, former Senior

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00:36:31,320 --> 00:36:34,520
Speaker 2: economic policy advisor to Senator Elizabeth Warren. Thank you so

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00:36:34,640 --> 00:36:37,040
Speaker 2: much for joining us. It's an excellent question, Joe, about

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Speaker 2: the way that monetary policy is transmitting in this economy,

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00:36:40,680 --> 00:36:43,360
Speaker 2: whether we can actually get down from three percent to

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00:36:43,360 --> 00:36:46,040
Speaker 2: two percent, or maybe the question Chairman Powell would like

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00:36:46,080 --> 00:36:48,960
Speaker 2: to answer least of all, is two percent still achievable.

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Speaker 3: Thanks for listening to the Balance of Power podcast. Make

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Speaker 3: sure to subscribe if you haven't already an Apple, Spotify,

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00:36:59,880 --> 00:37:03,160
Speaker 3: us live every weekday from Washington, DC at noontime Eastern

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Speaker 3: at Bloomberg dot com.