1 00:00:02,440 --> 00:00:06,800 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:11,640 --> 00:00:15,440 Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 3 00:00:15,480 --> 00:00:18,680 Speaker 2: with Lisa Bromwitz and Amrie Hordern. Join us each day 4 00:00:18,720 --> 00:00:22,280 Speaker 2: for insight from the best in markets, economics, and geopolitics 5 00:00:22,400 --> 00:00:24,920 Speaker 2: from our global headquarters in New York City. We are 6 00:00:24,920 --> 00:00:27,680 Speaker 2: live on Bloomberg Television weekday mornings from six to nine 7 00:00:27,720 --> 00:00:31,280 Speaker 2: am Eastern. Subscribe to the podcast on Apple, Spotify or 8 00:00:31,320 --> 00:00:33,960 Speaker 2: anywhere else you listen, and as always on the Bloomberg 9 00:00:34,040 --> 00:00:37,199 Speaker 2: Terminal and the Bloomberg Business App. George is with us 10 00:00:37,200 --> 00:00:39,360 Speaker 2: now for more. So, George, let's talk about it. The 11 00:00:39,440 --> 00:00:42,680 Speaker 2: data yesterday. Do you believe or not that that puts 12 00:00:42,680 --> 00:00:44,479 Speaker 2: to bed the idea of where we're going to get 13 00:00:44,479 --> 00:00:45,879 Speaker 2: a rake cut anytime soon? 14 00:00:46,960 --> 00:00:47,040 Speaker 3: Oh? 15 00:00:47,080 --> 00:00:48,199 Speaker 4: Yeah, I think it does push it off. 16 00:00:48,200 --> 00:00:49,720 Speaker 5: And I think that's what we're seeing across you know, 17 00:00:49,760 --> 00:00:52,520 Speaker 5: all the forecasters and the market's been doing this all along, 18 00:00:52,600 --> 00:00:55,640 Speaker 5: ever since, and and this is really the challenge, I mean, 19 00:00:55,680 --> 00:00:57,640 Speaker 5: because once you get to a point where the market 20 00:00:57,680 --> 00:00:59,880 Speaker 5: now is actually underpricing what the Fed has and they're 21 00:01:00,760 --> 00:01:03,120 Speaker 5: it does really kind of you know, call into question 22 00:01:03,200 --> 00:01:06,040 Speaker 5: the timing and timing is critical we you know, the 23 00:01:06,120 --> 00:01:10,080 Speaker 5: June July and if now that's really pushed off, you know, 24 00:01:10,120 --> 00:01:12,200 Speaker 5: the election. Of course that doesn't really shouldn't play a 25 00:01:12,240 --> 00:01:14,960 Speaker 5: role with the ifty data gets weaker and warrants an 26 00:01:15,000 --> 00:01:17,600 Speaker 5: actual cut. But I do think that you know that 27 00:01:17,720 --> 00:01:20,200 Speaker 5: they should cut in July. I have that that far. 28 00:01:20,400 --> 00:01:21,680 Speaker 5: I'm not going to change up part of the view. 29 00:01:21,720 --> 00:01:24,440 Speaker 5: I think that yesterday was an overreaction by the market. 30 00:01:24,440 --> 00:01:26,640 Speaker 5: But we have a big challenge now here because we 31 00:01:26,800 --> 00:01:31,360 Speaker 5: were banking on we collectively the global bomb market unsynchronized easing. 32 00:01:31,680 --> 00:01:33,160 Speaker 5: And now if you have this challenge, we have this 33 00:01:33,240 --> 00:01:34,200 Speaker 5: unsenchronized easing, and. 34 00:01:34,200 --> 00:01:35,200 Speaker 4: The Fed's delayed. 35 00:01:35,560 --> 00:01:37,240 Speaker 5: Other central banks are going to be worried as well, 36 00:01:37,240 --> 00:01:39,800 Speaker 5: so that this does add to volatility. That where it 37 00:01:39,840 --> 00:01:41,640 Speaker 5: adds to volatility is in the ten year more so 38 00:01:41,720 --> 00:01:42,520 Speaker 5: than in the two year. 39 00:01:42,680 --> 00:01:45,120 Speaker 2: Jeg's lots to unpacked. There the word over reaction, I 40 00:01:45,120 --> 00:01:46,560 Speaker 2: want to get into that just a little bit more. 41 00:01:46,600 --> 00:01:48,880 Speaker 2: Do you think an upside surprise of six basis points, 42 00:01:49,080 --> 00:01:51,320 Speaker 2: because ultimately that's all it was. Do you think an 43 00:01:51,360 --> 00:01:54,080 Speaker 2: upside surprise of six basis points was worth a twenty 44 00:01:54,120 --> 00:01:55,880 Speaker 2: basis point move at the front end of the curve. 45 00:01:56,920 --> 00:01:59,880 Speaker 5: That just goes to show you how lack of conviction 46 00:02:00,040 --> 00:02:02,760 Speaker 5: there is in the marketplace and positioning and how flows 47 00:02:02,800 --> 00:02:03,560 Speaker 5: can change very quickly. 48 00:02:03,600 --> 00:02:04,800 Speaker 4: This is a very binary market. 49 00:02:04,880 --> 00:02:07,560 Speaker 5: When you're on hold and your data dependent both the 50 00:02:07,560 --> 00:02:09,600 Speaker 5: markets and the FED, you know it's going to cause 51 00:02:09,639 --> 00:02:11,520 Speaker 5: you know, these sort of sort of reactions in my opinion, 52 00:02:11,600 --> 00:02:12,480 Speaker 5: although Jim Read. 53 00:02:12,320 --> 00:02:14,880 Speaker 1: Did put it well over from Deutsche Bank talking about 54 00:02:14,880 --> 00:02:17,240 Speaker 1: how this really calls into the question about whether the 55 00:02:17,240 --> 00:02:19,640 Speaker 1: bump is really a bump, and we'd been talking about 56 00:02:19,639 --> 00:02:21,200 Speaker 1: this for a long time. At what point does it 57 00:02:21,280 --> 00:02:24,000 Speaker 1: become a trend in something stickier? And really from all 58 00:02:24,000 --> 00:02:26,040 Speaker 1: of the notes, it seems like people are saying this 59 00:02:26,240 --> 00:02:29,040 Speaker 1: is sticky and if you discount that, that's going to 60 00:02:29,080 --> 00:02:31,399 Speaker 1: be at your peril. Why are you discounting that? 61 00:02:32,560 --> 00:02:35,600 Speaker 5: Well, because look, the sticky versus accelerating inflation is a 62 00:02:35,600 --> 00:02:36,360 Speaker 5: critical point. 63 00:02:36,560 --> 00:02:37,880 Speaker 4: And it's early in the year. 64 00:02:37,919 --> 00:02:40,640 Speaker 5: We again this, if we're data dependent, we have a 65 00:02:40,680 --> 00:02:42,320 Speaker 5: long road ahead of us with a lot of things 66 00:02:42,360 --> 00:02:44,960 Speaker 5: that can change on both, you know, the growth side 67 00:02:45,000 --> 00:02:47,240 Speaker 5: versus the inflation side. And to just to kind of 68 00:02:47,280 --> 00:02:50,280 Speaker 5: only focus on this inflation fear, I think that you 69 00:02:50,320 --> 00:02:52,720 Speaker 5: know could call it the question, and I think, you know, 70 00:02:52,720 --> 00:02:55,040 Speaker 5: the op ed from Muhammad al Arian is a good one. 71 00:02:55,040 --> 00:02:56,640 Speaker 5: I mean, this might be a world that we're going 72 00:02:56,680 --> 00:02:58,760 Speaker 5: to be training between two and three percent on inflation 73 00:02:59,360 --> 00:03:02,760 Speaker 5: and to jeopardize growth because of that's going to wait 74 00:03:02,800 --> 00:03:05,640 Speaker 5: until they see the actual improvement as well as or 75 00:03:05,680 --> 00:03:06,760 Speaker 5: weakness in the economy. 76 00:03:06,960 --> 00:03:08,360 Speaker 4: At that point is always too late. 77 00:03:08,639 --> 00:03:10,640 Speaker 1: Just to say on the over reaction concept and just 78 00:03:10,639 --> 00:03:13,240 Speaker 1: what that says about positioning. We talked a lot about 79 00:03:13,240 --> 00:03:16,080 Speaker 1: the pretty dramatic moves in the treasure market. In the 80 00:03:16,080 --> 00:03:18,600 Speaker 1: currency market, as John was talking about, we saw the 81 00:03:18,639 --> 00:03:21,640 Speaker 1: biggest one day rally in the dollar going back to 82 00:03:21,720 --> 00:03:25,280 Speaker 1: the height of the banking crisis in March twenty twenty three. 83 00:03:25,360 --> 00:03:28,640 Speaker 1: How much are you seeing this as really the difficulty 84 00:03:28,639 --> 00:03:31,320 Speaker 1: and frankly the challenge to some sort of synchronized rate 85 00:03:31,360 --> 00:03:32,919 Speaker 1: cutting cycle globally. 86 00:03:34,560 --> 00:03:36,120 Speaker 4: It really comes down to the FX markets. 87 00:03:36,560 --> 00:03:39,880 Speaker 5: I think that's clearly the case, and we look at 88 00:03:39,920 --> 00:03:43,560 Speaker 5: what's going on with the dollar yen. This gets into 89 00:03:43,600 --> 00:03:46,200 Speaker 5: a very potential vicious cycle where that that's why the 90 00:03:46,760 --> 00:03:49,960 Speaker 5: ten year the dollar and oil are super critical. That 91 00:03:50,040 --> 00:03:53,480 Speaker 5: macro trio is what's really going to dictate what happens 92 00:03:53,480 --> 00:03:53,920 Speaker 5: going forward. 93 00:03:53,960 --> 00:03:54,760 Speaker 4: And let's not forget that. 94 00:03:54,760 --> 00:03:57,680 Speaker 5: We've had a very accommodative or I guess financial easy 95 00:03:57,720 --> 00:04:01,480 Speaker 5: accommodative environment. If those three variables start moving in a 96 00:04:01,800 --> 00:04:04,640 Speaker 5: way where it's detrimental to risk assets, then you'll get 97 00:04:04,640 --> 00:04:06,800 Speaker 5: your tightening there too. So I think all this stuff 98 00:04:06,840 --> 00:04:07,480 Speaker 5: is in play. 99 00:04:07,640 --> 00:04:10,000 Speaker 2: Joeyce We's sit on foreign exchange, the euro one O seven, 100 00:04:10,240 --> 00:04:13,160 Speaker 2: dolly N one fifty three, cable one twenty five, that 101 00:04:13,240 --> 00:04:17,040 Speaker 2: print yesterday that moving yields in rates stayside. Who does 102 00:04:17,080 --> 00:04:19,839 Speaker 2: that upset more? The Bank of England, the BOJ or 103 00:04:19,839 --> 00:04:20,320 Speaker 2: the ECB. 104 00:04:21,640 --> 00:04:25,320 Speaker 5: I think the bo J first, ECB second, BOE third. 105 00:04:25,839 --> 00:04:28,240 Speaker 5: I think this is really coming down to like this 106 00:04:28,240 --> 00:04:30,000 Speaker 5: this one fifty three one fifty five level. 107 00:04:30,279 --> 00:04:31,320 Speaker 4: It's really important on. 108 00:04:31,279 --> 00:04:34,360 Speaker 5: The dollar end and in a moving ECB. ME like 109 00:04:34,440 --> 00:04:37,440 Speaker 5: I think like we've always looked at the ECB as 110 00:04:37,680 --> 00:04:39,920 Speaker 5: making policy mistakes. I think they're trying to be proactive. 111 00:04:39,960 --> 00:04:41,680 Speaker 5: I think they're trying to do the right thing. Uh, 112 00:04:41,760 --> 00:04:44,200 Speaker 5: they probably will have to ease before the FED, and 113 00:04:44,240 --> 00:04:46,039 Speaker 5: it's gonna be hard, and I think it's obviously a 114 00:04:46,080 --> 00:04:48,480 Speaker 5: challenge for them, but they just kind of sit here, 115 00:04:48,600 --> 00:04:50,840 Speaker 5: do nothing. It is not the right course of action either. 116 00:04:50,960 --> 00:04:52,880 Speaker 2: Do you think it tempt their ability to go further 117 00:04:53,200 --> 00:04:56,159 Speaker 2: beyond flagging a June raid cup at this meeting this morning? 118 00:04:57,839 --> 00:04:58,920 Speaker 4: At a minimum, what could happen? 119 00:04:58,960 --> 00:05:01,080 Speaker 5: I mean because if you'll I want to always backpedal, 120 00:05:01,200 --> 00:05:03,320 Speaker 5: and I think this could then enter into an environment 121 00:05:03,320 --> 00:05:06,040 Speaker 5: where such a bank's ease and then they skip meetings 122 00:05:06,040 --> 00:05:08,680 Speaker 5: and they try to really calibrate the message in between. 123 00:05:09,000 --> 00:05:10,760 Speaker 5: I think that's really what they can do, try to 124 00:05:10,800 --> 00:05:13,600 Speaker 5: really slow down the process. And that changed the narrative 125 00:05:13,720 --> 00:05:15,719 Speaker 5: every other inflation report. 126 00:05:15,920 --> 00:05:19,080 Speaker 2: This is really difficult, George, because one fifty two Lisa's 127 00:05:19,080 --> 00:05:20,599 Speaker 2: been talking about it was the line of the sand 128 00:05:20,600 --> 00:05:22,599 Speaker 2: for intervention, and here we are at one fifty three. 129 00:05:22,839 --> 00:05:24,680 Speaker 2: Steve England are a standard chant to put a note 130 00:05:24,720 --> 00:05:27,360 Speaker 2: out ahead of this, So this is before the CPI 131 00:05:27,440 --> 00:05:29,320 Speaker 2: print and this is what he said, a hot print 132 00:05:29,320 --> 00:05:33,800 Speaker 2: would mean fighting market fundamentals. That's a difficult intervention proposition 133 00:05:34,080 --> 00:05:37,240 Speaker 2: given where the fundamentals are and how strong the tide 134 00:05:37,320 --> 00:05:39,920 Speaker 2: is right now against the BOJ Do you think they 135 00:05:39,920 --> 00:05:43,160 Speaker 2: can intervene in the effects market anymore so? 136 00:05:43,520 --> 00:05:46,320 Speaker 5: The challenge, of course, other other than just verbal intervention 137 00:05:47,480 --> 00:05:50,120 Speaker 5: is that for the better part of the last eighteen months, 138 00:05:50,120 --> 00:05:53,200 Speaker 5: as the FED was hiking and then concluding their hiking cycle, 139 00:05:53,240 --> 00:05:56,080 Speaker 5: and then all these eases were priced in. I mean, 140 00:05:56,160 --> 00:05:59,040 Speaker 5: in many ways Bank of Japan was hoping in banking 141 00:05:59,080 --> 00:06:02,040 Speaker 5: on global central banks easing and that would take some 142 00:06:02,080 --> 00:06:04,520 Speaker 5: pressure off the currency. And then now this really does 143 00:06:04,560 --> 00:06:07,480 Speaker 5: call into question that. And therefore, you know, do you 144 00:06:07,520 --> 00:06:09,360 Speaker 5: start raising rates faster and then you get into the 145 00:06:10,040 --> 00:06:12,760 Speaker 5: whole yen carry trade and the concerns around that. So 146 00:06:13,080 --> 00:06:15,239 Speaker 5: I think that, you know, the Japan story is super critical. 147 00:06:15,279 --> 00:06:18,440 Speaker 5: Obviously it's important to us, and I think that it 148 00:06:18,480 --> 00:06:22,000 Speaker 5: does at a minimum need to have some sort of intervention. 149 00:06:22,320 --> 00:06:24,560 Speaker 5: I don't think that a move beyond with fifty five 150 00:06:24,600 --> 00:06:26,960 Speaker 5: will be tolerated, and I think that that we'll probably 151 00:06:27,000 --> 00:06:30,520 Speaker 5: see something there, but we don't know obviously you know, 152 00:06:30,600 --> 00:06:32,520 Speaker 5: with clarity on what's going to happen there. But I 153 00:06:32,520 --> 00:06:35,400 Speaker 5: do think that it's going to now move towards kenne 154 00:06:35,400 --> 00:06:37,880 Speaker 5: buj actually raised rates even more than just ten bases 155 00:06:37,920 --> 00:06:38,640 Speaker 5: points out of clip. 156 00:06:39,000 --> 00:06:42,040 Speaker 1: Does yesterday's print George really challenge this thesis that we've 157 00:06:42,040 --> 00:06:43,960 Speaker 1: been hearing from a lot of guests, which is go 158 00:06:44,040 --> 00:06:46,760 Speaker 1: outside of the US. There's more value elsewhere, whether it's 159 00:06:46,800 --> 00:06:49,720 Speaker 1: risk assets or whether it's currency that generally it seems 160 00:06:49,720 --> 00:06:52,800 Speaker 1: like the US is sort of overpriced. Does that get 161 00:06:52,920 --> 00:06:56,040 Speaker 1: challenged fundamentally based on the fact that the US is 162 00:06:56,080 --> 00:06:58,720 Speaker 1: still the one printing inflation as well as strong growth. 163 00:07:00,040 --> 00:07:02,920 Speaker 5: If you look across your world bond screen on your 164 00:07:02,920 --> 00:07:05,719 Speaker 5: Bloomberg terminal, and as I'm sure you all do, the 165 00:07:05,800 --> 00:07:08,360 Speaker 5: US is still one of the highest yielding for developed markets. 166 00:07:08,400 --> 00:07:11,400 Speaker 5: I mean New Zealand, you know, and a few others maybe, 167 00:07:11,400 --> 00:07:13,920 Speaker 5: but there's you know, the attractive yields in the US, 168 00:07:13,920 --> 00:07:15,320 Speaker 5: and that's why I feel like it's gonna be hard 169 00:07:15,320 --> 00:07:16,000 Speaker 5: for fixing. 170 00:07:15,800 --> 00:07:18,120 Speaker 4: Income to go unhinged. And you know, this. 171 00:07:18,240 --> 00:07:20,480 Speaker 5: Four to fifty level is critical psychologically, and we could 172 00:07:20,480 --> 00:07:22,240 Speaker 5: go to four seventy five and a ten yeard wouldn't 173 00:07:22,240 --> 00:07:22,720 Speaker 5: be surprised. 174 00:07:23,080 --> 00:07:24,720 Speaker 4: But nonetheless, there's. 175 00:07:24,600 --> 00:07:26,280 Speaker 5: You know, capital will come to the US because of 176 00:07:26,280 --> 00:07:28,600 Speaker 5: our higher yields, and I think that's gonna benefit more 177 00:07:28,640 --> 00:07:31,080 Speaker 5: fixed income than equities, considering where evaluations are. 178 00:07:31,080 --> 00:07:34,280 Speaker 2: Now interesting George, thank you, sir jo Cancaves of MBFJ 179 00:07:34,440 --> 00:07:46,960 Speaker 2: on the bomb market join, I guess is City's rubber 180 00:07:47,040 --> 00:07:50,040 Speaker 2: suckin city. I know you've got a city. Great Rubbert 181 00:07:50,040 --> 00:07:52,400 Speaker 2: that coal for June for a right cut, and I 182 00:07:52,440 --> 00:07:54,000 Speaker 2: just wonder is it just about holding on by his 183 00:07:54,040 --> 00:07:57,720 Speaker 2: fingernails after that pp I print, Thanks. 184 00:07:57,560 --> 00:07:59,720 Speaker 6: So much for having me. Yeah, we're still holding on 185 00:07:59,760 --> 00:08:01,880 Speaker 6: to that June call. I think it's a very close 186 00:08:02,480 --> 00:08:05,920 Speaker 6: call at this point. As Michael McKee had said, you know, 187 00:08:06,040 --> 00:08:09,640 Speaker 6: once you have three months of data, you start to 188 00:08:09,640 --> 00:08:12,320 Speaker 6: think that might be a trend, and we've seen fairly 189 00:08:12,400 --> 00:08:15,440 Speaker 6: hot inflation data throughout the first quarter of this year. 190 00:08:15,680 --> 00:08:18,000 Speaker 6: We do think we have to see how it shakes 191 00:08:18,040 --> 00:08:21,480 Speaker 6: out with PPI. If core PCE is coming in around 192 00:08:22,080 --> 00:08:24,600 Speaker 6: point three is probably the limit or maybe somewhere below 193 00:08:24,640 --> 00:08:27,080 Speaker 6: that would be okay if you're running that type of rate. 194 00:08:27,120 --> 00:08:31,240 Speaker 6: We think Shairpal would feel comfortable at least starting to 195 00:08:31,280 --> 00:08:34,280 Speaker 6: ease in June. But again, if it comes in something 196 00:08:34,320 --> 00:08:37,440 Speaker 6: like point three, that's probably the borderline of where you'd 197 00:08:37,440 --> 00:08:40,560 Speaker 6: feel comfortable. So I think the inflation numbers are going 198 00:08:40,600 --> 00:08:42,679 Speaker 6: against the call, and certainly the probability of it have 199 00:08:42,679 --> 00:08:45,720 Speaker 6: gone down. But that PPI will see how it shakes 200 00:08:45,760 --> 00:08:49,680 Speaker 6: out with the core PCE estimates, But overall that's pretty 201 00:08:49,679 --> 00:08:52,640 Speaker 6: good news, so we think. And also, this is a 202 00:08:52,679 --> 00:08:55,839 Speaker 6: FED that seems to really want to get the easing 203 00:08:55,880 --> 00:09:01,040 Speaker 6: cycle started at some point this year. So on balance, 204 00:09:01,080 --> 00:09:02,760 Speaker 6: we're holding on to it. But again, you know, it's 205 00:09:02,800 --> 00:09:05,520 Speaker 6: going to depend on those next few inflation prints and 206 00:09:05,559 --> 00:09:06,760 Speaker 6: how the labor market evolves. 207 00:09:06,840 --> 00:09:08,240 Speaker 2: Well, for a while, you in the team of City 208 00:09:08,320 --> 00:09:10,720 Speaker 2: have said this Federal Reserve has shifted emphasis. It's putting 209 00:09:10,720 --> 00:09:13,600 Speaker 2: a greater emphasis on the potential for labor market weakness. 210 00:09:13,600 --> 00:09:15,680 Speaker 2: And in line with that, I think the perceived reaction 211 00:09:15,800 --> 00:09:18,920 Speaker 2: function from the market of the Federal Reserve has shifted 212 00:09:18,920 --> 00:09:21,520 Speaker 2: as well. Maybe up until yesterday, there was this belief 213 00:09:21,520 --> 00:09:24,680 Speaker 2: that the Federal Reserve could respond to adverse shocks, maybe 214 00:09:24,720 --> 00:09:27,480 Speaker 2: weakness pronounced weakness in the labor market because of these 215 00:09:27,480 --> 00:09:31,360 Speaker 2: disinflationary trends. Robert, I'm trying to understand is whether that 216 00:09:31,480 --> 00:09:34,480 Speaker 2: story is being damaged by the print of yesterday or not. 217 00:09:34,720 --> 00:09:37,480 Speaker 3: Do you think it has Yeah, this is a. 218 00:09:37,600 --> 00:09:40,120 Speaker 6: This is a tough question because that's certainly been part 219 00:09:40,120 --> 00:09:42,600 Speaker 6: of the imputus for our calls. We do think there 220 00:09:42,679 --> 00:09:45,120 Speaker 6: is enough signs of softness in the labor market, not 221 00:09:45,200 --> 00:09:48,040 Speaker 6: so much in the overall aggregate numbers. So hiring is 222 00:09:48,080 --> 00:09:50,600 Speaker 6: still strong. Jobs claim they are still low, but you 223 00:09:50,640 --> 00:09:54,600 Speaker 6: are seeing things like hiring intentions fall significantly from small businesses. 224 00:09:55,200 --> 00:09:58,200 Speaker 6: You seeing things like the hiring rate drop notably in 225 00:09:58,280 --> 00:10:02,160 Speaker 6: recent quarters. So we think there was a softness, that 226 00:10:02,240 --> 00:10:05,400 Speaker 6: the FED was getting worried that the labor market was 227 00:10:05,640 --> 00:10:08,960 Speaker 6: weakening too much and that you could be heading into 228 00:10:08,960 --> 00:10:11,079 Speaker 6: a recession. I still think that's a big backbone of 229 00:10:11,120 --> 00:10:13,160 Speaker 6: the call, but now that has to be weighed, as 230 00:10:13,160 --> 00:10:17,080 Speaker 6: you said, against these stronger inflation prints. I do think 231 00:10:17,120 --> 00:10:20,319 Speaker 6: if we do see more signs of weakening, the FED 232 00:10:20,320 --> 00:10:23,320 Speaker 6: would lean more on that element and still like to 233 00:10:23,440 --> 00:10:26,920 Speaker 6: start this cutting cycle. But exactly as you said, it 234 00:10:27,000 --> 00:10:30,280 Speaker 6: complicates the math because before we were getting inflation that 235 00:10:30,440 --> 00:10:33,800 Speaker 6: was good enough and some signs of softening, but the 236 00:10:33,880 --> 00:10:37,080 Speaker 6: last few months have been much stronger inflation than we 237 00:10:37,080 --> 00:10:37,720 Speaker 6: were expecting. 238 00:10:38,000 --> 00:10:39,680 Speaker 1: Rober you keip saying that this is a FED that 239 00:10:39,720 --> 00:10:41,360 Speaker 1: wants to cart and a lot of people have been 240 00:10:41,400 --> 00:10:44,120 Speaker 1: asking why, and there are a lot of conspiracy theories, 241 00:10:44,200 --> 00:10:46,760 Speaker 1: and then there are questions around just somewhere of the weakness, 242 00:10:46,760 --> 00:10:49,320 Speaker 1: of where the weakness is coming from. We heard from 243 00:10:49,400 --> 00:10:53,040 Speaker 1: Jason Thomas of Carlisle earlier this morning that one of 244 00:10:53,040 --> 00:10:55,679 Speaker 1: the reasons why is the deficit, and as it balloons, 245 00:10:55,800 --> 00:10:58,360 Speaker 1: borrowing costs are getting more punitive for the United States. 246 00:10:58,400 --> 00:11:00,640 Speaker 1: How much do you think that's factoring in the decision 247 00:11:00,960 --> 00:11:02,679 Speaker 1: to try to cut rates at a time when a 248 00:11:02,720 --> 00:11:04,679 Speaker 1: lot of that deficits financed through T bills. 249 00:11:05,960 --> 00:11:07,320 Speaker 6: Yeah, great, it's a great question. 250 00:11:07,440 --> 00:11:07,800 Speaker 3: Certainly. 251 00:11:07,800 --> 00:11:11,120 Speaker 6: On the one hand, those deficit numbers are looking very large, 252 00:11:11,880 --> 00:11:15,800 Speaker 6: and interest costs have been growing significantly as a share 253 00:11:15,920 --> 00:11:17,560 Speaker 6: of the overall deficit. 254 00:11:17,840 --> 00:11:18,720 Speaker 3: I don't think. 255 00:11:18,520 --> 00:11:21,680 Speaker 6: Though, that that's the primary concern of the FED. I 256 00:11:21,679 --> 00:11:23,800 Speaker 6: think in the fed's mind that they feel like they've 257 00:11:23,800 --> 00:11:24,400 Speaker 6: done enough. 258 00:11:24,760 --> 00:11:25,319 Speaker 3: They feel like. 259 00:11:25,240 --> 00:11:28,360 Speaker 6: They're restrictive, and they do feel like they're seeing enough 260 00:11:28,520 --> 00:11:32,080 Speaker 6: progress on inflation and enough signs of loosening in the 261 00:11:32,160 --> 00:11:35,600 Speaker 6: labor market and softening in the economy that they're willing 262 00:11:36,080 --> 00:11:39,520 Speaker 6: to start to start easing, especially if they are starting 263 00:11:39,559 --> 00:11:41,960 Speaker 6: to get concerned about those downside risk activity. So I 264 00:11:42,000 --> 00:11:45,319 Speaker 6: don't think that that concern is primary in their mind. 265 00:11:46,000 --> 00:11:48,800 Speaker 6: But more broadly, I do think that is an issue 266 00:11:49,559 --> 00:11:53,440 Speaker 6: that deficits are getting big, and that's something policy makers 267 00:11:53,440 --> 00:11:55,920 Speaker 6: have to pay attention to as interest scars are high, 268 00:11:56,000 --> 00:11:58,880 Speaker 6: but primarily the FED is focused on getting inflation back 269 00:11:58,880 --> 00:12:01,800 Speaker 6: down the target and maintaining activity in the economy. 270 00:12:02,040 --> 00:12:04,640 Speaker 1: Rob Have you changed your long term inflation forecast for 271 00:12:04,679 --> 00:12:06,280 Speaker 1: the United States and the heels of some of these 272 00:12:06,280 --> 00:12:08,640 Speaker 1: prints and your belief that the FED will still cut. 273 00:12:10,240 --> 00:12:14,680 Speaker 6: No, we haven't changed the longer term outlook in terms 274 00:12:14,720 --> 00:12:18,760 Speaker 6: of inflation will gradually go back down to target over 275 00:12:18,760 --> 00:12:22,200 Speaker 6: the next few years. Have somewhat of a sticky path 276 00:12:22,280 --> 00:12:25,719 Speaker 6: down because we think that services inflation is going to 277 00:12:25,760 --> 00:12:29,280 Speaker 6: take longer than many people think to come back down 278 00:12:29,320 --> 00:12:32,520 Speaker 6: to more stable levels, and as mentioned, still have the 279 00:12:32,520 --> 00:12:36,000 Speaker 6: FED cutting in June. But I think the risks around 280 00:12:36,000 --> 00:12:40,280 Speaker 6: that forecast have changed. The risks are looking more tilted 281 00:12:40,320 --> 00:12:43,680 Speaker 6: towards inflation states even higher for longer than we've had, 282 00:12:43,960 --> 00:12:46,319 Speaker 6: and the risks are looking that the FED starts that 283 00:12:46,720 --> 00:12:49,680 Speaker 6: easing cycle a bit later. So we're holding onto those 284 00:12:49,720 --> 00:12:53,240 Speaker 6: similar views, but I think the risks have definitely tilted 285 00:12:53,240 --> 00:12:54,080 Speaker 6: in a different direction. 286 00:12:54,360 --> 00:12:56,520 Speaker 2: Robin, this was great, fantastic hey from you have rubt 287 00:12:56,520 --> 00:12:58,600 Speaker 2: Selkin there sit say just about holding on to this 288 00:12:58,679 --> 00:13:10,440 Speaker 2: June right time. Let's tend to our next story. The 289 00:13:10,559 --> 00:13:14,200 Speaker 2: NTSB said this investigation into last month's Baltimore bridge collapse 290 00:13:14,440 --> 00:13:17,520 Speaker 2: is honing in on the vessel's electrical system. President Biden 291 00:13:17,559 --> 00:13:19,960 Speaker 2: saying the federal government will pay for the bridge recovery 292 00:13:20,200 --> 00:13:22,720 Speaker 2: and rebuild. I meanwhile, the Governor of Maryland saying he 293 00:13:22,760 --> 00:13:25,120 Speaker 2: hopes to restore full service of the Port of Baltimore 294 00:13:25,280 --> 00:13:27,200 Speaker 2: by the end of May. A police to say that 295 00:13:27,240 --> 00:13:29,760 Speaker 2: with us is Governor Wesmore. Governor, thanks for giving us 296 00:13:29,760 --> 00:13:31,360 Speaker 2: your time this morning. I know it's been a very 297 00:13:31,360 --> 00:13:33,839 Speaker 2: difficult month for you and the people of your state, 298 00:13:34,280 --> 00:13:36,400 Speaker 2: very very difficult. I want to start with this because 299 00:13:36,400 --> 00:13:38,839 Speaker 2: the President of the United States, President Joe Biden, has 300 00:13:38,880 --> 00:13:41,800 Speaker 2: committed to funding the cost of the rebuild. How confident 301 00:13:41,800 --> 00:13:45,240 Speaker 2: are you that he can get that financing through Congress. 302 00:13:47,400 --> 00:13:50,000 Speaker 7: Well, I'm confident that it's imperative that we can get 303 00:13:50,000 --> 00:13:52,240 Speaker 7: it done. If you look at the economic impact of 304 00:13:52,280 --> 00:13:55,959 Speaker 7: the Port of Baltimore, the Port of Baltimore is worthy 305 00:13:56,480 --> 00:14:00,520 Speaker 7: and contributes about seventy billion dollars to the American economy. 306 00:14:00,520 --> 00:14:03,280 Speaker 7: The Port of Baltimore is the largest port in this 307 00:14:03,440 --> 00:14:08,240 Speaker 7: country for new cars, for heavy trucks, for agricultural equipment, 308 00:14:08,360 --> 00:14:12,960 Speaker 7: for spices and sugars for coal. That a huge chunk 309 00:14:13,000 --> 00:14:16,680 Speaker 7: of the American economy relies on the Port of Baltimore. 310 00:14:16,960 --> 00:14:20,280 Speaker 7: And so I'm thankful that the President has led and 311 00:14:20,360 --> 00:14:22,720 Speaker 7: rightfully acknowledged that what happened. 312 00:14:22,400 --> 00:14:24,560 Speaker 3: Last week was not just a human catastrophe. 313 00:14:24,560 --> 00:14:28,720 Speaker 7: I mean, we lost six Marylanders during this catastrophe, and 314 00:14:28,760 --> 00:14:31,840 Speaker 7: it was not just an economic catastrophe for Maryland or 315 00:14:31,920 --> 00:14:35,360 Speaker 7: for the region. This was an economic catastrophe for the country. 316 00:14:35,560 --> 00:14:36,640 Speaker 4: And so our ability to. 317 00:14:36,640 --> 00:14:39,480 Speaker 7: Be able to rally in a bipartisan fashion and to 318 00:14:39,480 --> 00:14:42,360 Speaker 7: be able to get the poor reopened and reopen the 319 00:14:42,400 --> 00:14:44,880 Speaker 7: brit and get the bridge rebuilt is going to be 320 00:14:44,880 --> 00:14:45,880 Speaker 7: a national priority. 321 00:14:46,000 --> 00:14:48,880 Speaker 2: So two issues that, so reopened the poor and reopened 322 00:14:48,880 --> 00:14:50,560 Speaker 2: the bridge. Can we did with the first one? First, 323 00:14:51,000 --> 00:14:53,240 Speaker 2: reopened the poor? How strikeful? But it is not going 324 00:14:53,280 --> 00:14:53,440 Speaker 2: to be. 325 00:14:56,800 --> 00:14:59,040 Speaker 3: This is a remarkably complex operation. 326 00:14:59,200 --> 00:15:02,360 Speaker 7: We've never had at a maritime disaster like this, where 327 00:15:02,440 --> 00:15:06,080 Speaker 7: you have not only a ship, a vessel that's the 328 00:15:06,120 --> 00:15:08,360 Speaker 7: size of the Eiffel Tower and the weight of the 329 00:15:08,440 --> 00:15:11,880 Speaker 7: Washington Monument that is now stuck in the middle. 330 00:15:11,640 --> 00:15:12,640 Speaker 3: Of the Potapsco River. 331 00:15:12,680 --> 00:15:14,040 Speaker 7: And part of the reason that it's stuck in the 332 00:15:14,040 --> 00:15:17,080 Speaker 7: middle of the river is because it has a bridge, 333 00:15:17,320 --> 00:15:20,160 Speaker 7: an iconic bridge that's sitting on top of it. Three 334 00:15:20,240 --> 00:15:23,000 Speaker 7: to four thousand tons of steel are sitting on top 335 00:15:23,080 --> 00:15:25,080 Speaker 7: of the bridge, and the remainder of the bridge is 336 00:15:25,080 --> 00:15:26,960 Speaker 7: sitting at the bottom of the river. 337 00:15:27,200 --> 00:15:30,040 Speaker 3: So this is still a remarkably complex operation. 338 00:15:29,760 --> 00:15:31,680 Speaker 7: One where we have our divers who are in there 339 00:15:31,720 --> 00:15:35,280 Speaker 7: every day and they literally cannot see anywhere between a 340 00:15:35,320 --> 00:15:37,240 Speaker 7: foot or two in front of them because of the 341 00:15:37,240 --> 00:15:40,280 Speaker 7: amount of wreckage that's in the water. And so the 342 00:15:40,320 --> 00:15:42,360 Speaker 7: ability that we've now been able to open up two 343 00:15:42,440 --> 00:15:45,200 Speaker 7: channels that can now have up to a fourteen foot 344 00:15:45,240 --> 00:15:47,760 Speaker 7: depth so you can get certain commercial vehicles. We've had 345 00:15:47,800 --> 00:15:52,360 Speaker 7: fifty nine commercial transfers that have already taken place, and 346 00:15:52,440 --> 00:15:54,520 Speaker 7: hopefully by the end of May we'll have. 347 00:15:54,520 --> 00:15:56,920 Speaker 3: Fully functioning operations for the port. 348 00:15:57,480 --> 00:16:00,160 Speaker 7: Is a staggering accomplishment when you think about the speed 349 00:16:00,160 --> 00:16:03,080 Speaker 7: in the coordination that was required in order to make 350 00:16:03,080 --> 00:16:03,520 Speaker 7: that happen. 351 00:16:03,680 --> 00:16:05,440 Speaker 8: So end of May for the port governor. But what 352 00:16:05,480 --> 00:16:07,720 Speaker 8: about the rebuild of the bridge, What does this timeline 353 00:16:07,720 --> 00:16:08,080 Speaker 8: look like? 354 00:16:10,880 --> 00:16:12,280 Speaker 7: The rebuild of the bridge is going to be a 355 00:16:12,280 --> 00:16:14,960 Speaker 7: longer timeline. The thing that we know is for that 356 00:16:15,000 --> 00:16:17,760 Speaker 7: bridge that over thirty six thousand people went over that 357 00:16:17,800 --> 00:16:20,520 Speaker 7: bridge every single day. That was the bridge that got 358 00:16:20,520 --> 00:16:22,760 Speaker 7: people from where they lived to where they worked, from 359 00:16:22,760 --> 00:16:25,240 Speaker 7: where they lived to where they worshiped for they lived 360 00:16:25,240 --> 00:16:26,280 Speaker 7: to where they went to school. 361 00:16:26,600 --> 00:16:28,320 Speaker 3: It was also a key and. 362 00:16:28,280 --> 00:16:31,920 Speaker 7: A crucial part of port operations because for the Port 363 00:16:31,920 --> 00:16:35,200 Speaker 7: of Baltimore, it's not just maritime operations. It's also rail 364 00:16:35,480 --> 00:16:37,760 Speaker 7: and it's also truck operations that exists in the Port 365 00:16:37,760 --> 00:16:40,520 Speaker 7: of Baltimore. And so in order to truly get the 366 00:16:40,520 --> 00:16:43,120 Speaker 7: Port of Baltimore up and going in the same kind 367 00:16:43,120 --> 00:16:46,040 Speaker 7: of fashion that it was before, getting that bridge rebuilt 368 00:16:46,160 --> 00:16:48,160 Speaker 7: is going to be imperative, and we know that's going 369 00:16:48,200 --> 00:16:50,440 Speaker 7: to be a longer timeline, but we are committed to 370 00:16:50,480 --> 00:16:52,880 Speaker 7: making sure that we get the Key Bridge rebuilt. 371 00:16:52,960 --> 00:16:54,360 Speaker 8: And I know that's why you're going to be in 372 00:16:54,480 --> 00:16:57,400 Speaker 8: Washington today to be speaking to lawmakers about the funding 373 00:16:57,440 --> 00:17:01,160 Speaker 8: to rebuild this. I was struck by what Senator said yesterday. 374 00:17:01,240 --> 00:17:04,560 Speaker 8: He says that he wants to get this rebuilt as 375 00:17:04,600 --> 00:17:07,879 Speaker 8: soon as possible, but he said it's bureaucratic gilding and 376 00:17:08,000 --> 00:17:10,919 Speaker 8: lend the environmental reviews kind of blaming it on Democrats. 377 00:17:10,920 --> 00:17:14,439 Speaker 8: For this bureaucracy environmental reviews that could potentially make this 378 00:17:14,560 --> 00:17:17,600 Speaker 8: a long term process and not as quick as say 379 00:17:17,760 --> 00:17:20,639 Speaker 8: you and residents of Maryland want to see. Do you 380 00:17:21,040 --> 00:17:24,920 Speaker 8: agree with him that this should be really fast tracked. 381 00:17:27,880 --> 00:17:30,960 Speaker 7: Well, I'm thankful that Senator Cruz is a yes on 382 00:17:31,119 --> 00:17:33,240 Speaker 7: making sure that we can get one hundred percent funding 383 00:17:33,720 --> 00:17:36,600 Speaker 7: for it. I'm thankful that Senator Cruz understands how imperative 384 00:17:36,640 --> 00:17:38,480 Speaker 7: it is that we both get the port reopened and 385 00:17:38,560 --> 00:17:39,760 Speaker 7: also get the bridge rebuilt. 386 00:17:40,520 --> 00:17:42,560 Speaker 3: I also know that the White House. 387 00:17:42,600 --> 00:17:43,960 Speaker 7: I mean, I have my first phone call from the 388 00:17:44,000 --> 00:17:46,080 Speaker 7: White House at three o'clock in the morning, the morning 389 00:17:46,119 --> 00:17:48,199 Speaker 7: of the tragedy, and the White House has been with 390 00:17:48,320 --> 00:17:50,760 Speaker 7: us every single step of the way. The Secretary of 391 00:17:50,800 --> 00:17:55,320 Speaker 7: Transportation was literally down there boots on ground before noon 392 00:17:56,200 --> 00:17:58,399 Speaker 7: to be able to assess the damage and assess what 393 00:17:58,440 --> 00:18:00,920 Speaker 7: they can do to help. Yet to receive a phone 394 00:18:00,920 --> 00:18:03,480 Speaker 7: call from Senator Cruz, I've yet to receive a visit 395 00:18:03,520 --> 00:18:04,240 Speaker 7: from Senator Cruz. 396 00:18:04,280 --> 00:18:05,680 Speaker 3: I would welcome him to come to. 397 00:18:05,640 --> 00:18:08,920 Speaker 7: Baltimore for him to see exactly the circumstances in the 398 00:18:08,960 --> 00:18:11,880 Speaker 7: situation that we're dealing with. And I'm sure when he came, 399 00:18:12,240 --> 00:18:14,920 Speaker 7: he would also see that there are members of the 400 00:18:14,960 --> 00:18:17,160 Speaker 7: Biden administration who have been on the ground the entire time, 401 00:18:17,160 --> 00:18:18,560 Speaker 7: and I'm sure he would spend time with them as 402 00:18:18,600 --> 00:18:20,240 Speaker 7: well when he came to Baltimore. 403 00:18:20,800 --> 00:18:23,199 Speaker 3: I know this needs to move quickly. This needs to 404 00:18:23,240 --> 00:18:23,840 Speaker 3: move fast. 405 00:18:24,119 --> 00:18:26,679 Speaker 7: We need to focus on safety and we've got to 406 00:18:26,680 --> 00:18:28,879 Speaker 7: get this thing rebuilt. And I'm glad we are building 407 00:18:28,880 --> 00:18:32,560 Speaker 7: a bipartisan support structure around what's going to take and 408 00:18:32,560 --> 00:18:33,520 Speaker 7: around what that can look like. 409 00:18:33,560 --> 00:18:35,480 Speaker 1: If you talk about how quickly it's important to rebuild 410 00:18:35,520 --> 00:18:36,920 Speaker 1: the bridge, and I know a lot of people would 411 00:18:36,960 --> 00:18:40,840 Speaker 1: agree from every facet of the region. How much are 412 00:18:40,840 --> 00:18:43,560 Speaker 1: you exploring other types of financing if it doesn't come 413 00:18:43,600 --> 00:18:47,080 Speaker 1: from the government, whether it's issuing medicipal bonds or getting 414 00:18:47,119 --> 00:18:48,520 Speaker 1: public private partnerships. 415 00:18:51,680 --> 00:18:53,359 Speaker 7: I think that all options should be on the table, 416 00:18:53,400 --> 00:18:54,600 Speaker 7: and all options are on the table. 417 00:18:54,800 --> 00:18:55,040 Speaker 4: You know. 418 00:18:55,520 --> 00:18:58,280 Speaker 7: I don't come from a political background. I'm frankly, I'm 419 00:18:58,280 --> 00:19:00,800 Speaker 7: an army guy. I spend I was a paratroop with 420 00:19:00,840 --> 00:19:03,480 Speaker 7: the eighty second Airborne Division, and then when I left 421 00:19:03,480 --> 00:19:06,120 Speaker 7: the army, I started a business. 422 00:19:06,560 --> 00:19:08,840 Speaker 3: So I understand the role that. 423 00:19:08,840 --> 00:19:12,200 Speaker 7: The public sector, the private sector that philanthropy is also 424 00:19:12,240 --> 00:19:14,280 Speaker 7: going to play in this and if you just look 425 00:19:14,280 --> 00:19:16,520 Speaker 7: at the past week, you know we've used every lever 426 00:19:16,680 --> 00:19:19,320 Speaker 7: at our disposal to be able to address this issue. 427 00:19:19,640 --> 00:19:23,200 Speaker 7: I actually issued an executive order that released sixty million 428 00:19:23,280 --> 00:19:25,080 Speaker 7: dollars of state funding. 429 00:19:24,720 --> 00:19:26,760 Speaker 3: That went towards supporting our port workers. 430 00:19:27,280 --> 00:19:30,880 Speaker 7: We actually signed legislation that focused on things like providing 431 00:19:30,920 --> 00:19:34,600 Speaker 7: scholarships to the children of transportation workers who have died 432 00:19:34,640 --> 00:19:37,639 Speaker 7: on the job, and also providing additional supports for businesses. 433 00:19:37,920 --> 00:19:41,000 Speaker 7: We also helped launch something called the Maryland Tough Baltimore 434 00:19:41,080 --> 00:19:45,520 Speaker 7: Strong Alliance, which is over eighty organizations, private sector businesses, 435 00:19:45,560 --> 00:19:48,640 Speaker 7: and philanthropy. We've now raised over fifteen million dollars. It's 436 00:19:48,640 --> 00:19:51,200 Speaker 7: going towards port workers and also have a commitment from 437 00:19:51,200 --> 00:19:53,960 Speaker 7: businesses to do things like they're not laying off their workers. 438 00:19:54,119 --> 00:19:56,360 Speaker 7: If they have to temporarily move operations from the Port 439 00:19:56,400 --> 00:19:58,440 Speaker 7: of Baltimore, they're going to bring them. They've committed to 440 00:19:58,480 --> 00:20:01,320 Speaker 7: bringing them back to the por Baltimore. So we know 441 00:20:01,400 --> 00:20:03,960 Speaker 7: it's important to use every single lever at our disposal 442 00:20:04,200 --> 00:20:09,040 Speaker 7: and that every sector, private sector, public sector philanthropy have 443 00:20:09,160 --> 00:20:11,199 Speaker 7: all got to be involved in at the table in 444 00:20:11,280 --> 00:20:12,240 Speaker 7: order for us to get to our. 445 00:20:12,160 --> 00:20:13,119 Speaker 3: Long term conclusions. 446 00:20:13,119 --> 00:20:15,159 Speaker 1: Well, as a Marylander, as a business owner, as a 447 00:20:15,160 --> 00:20:18,120 Speaker 1: military man, you fully understand the importance of infrastructure and 448 00:20:18,280 --> 00:20:20,600 Speaker 1: what the ramifications could be. The longer that this goes 449 00:20:20,640 --> 00:20:23,600 Speaker 1: on is very drop dead time, where say it takes 450 00:20:23,640 --> 00:20:26,160 Speaker 1: two years, and that's the maximum that it could take 451 00:20:26,200 --> 00:20:29,480 Speaker 1: to rebuild this bridge and get operations to reopen the port, 452 00:20:29,520 --> 00:20:33,199 Speaker 1: to get things back up and running. Were Maryland Baltimore 453 00:20:33,400 --> 00:20:36,840 Speaker 1: can withstand that versus after that where it becomes a 454 00:20:36,880 --> 00:20:39,720 Speaker 1: real financial weight that has much more punitive consequences. 455 00:20:42,280 --> 00:20:45,800 Speaker 7: Well, it's a financial weight now, and it's the reason 456 00:20:45,880 --> 00:20:49,040 Speaker 7: that we are moving as fast as humanly possible. It's 457 00:20:49,080 --> 00:20:51,280 Speaker 7: the reason that we have twenty four to seven operations 458 00:20:51,560 --> 00:20:53,919 Speaker 7: that are going right now, and that cadence, that speed, 459 00:20:54,000 --> 00:20:56,800 Speaker 7: it's not going to stop. I'm committed to making sure 460 00:20:56,840 --> 00:20:58,840 Speaker 7: that we are moving with speed on this because we 461 00:20:58,920 --> 00:21:01,040 Speaker 7: have to remember there are ten of thousands of port 462 00:21:01,080 --> 00:21:04,600 Speaker 7: workers that right now are being impacted by this, their 463 00:21:04,800 --> 00:21:07,600 Speaker 7: entire communities that now have watched their way of life 464 00:21:07,640 --> 00:21:12,119 Speaker 7: completely upended. They are industries that the country relies on 465 00:21:12,480 --> 00:21:15,119 Speaker 7: that are now at either a stop or a stall 466 00:21:15,600 --> 00:21:18,840 Speaker 7: because of what has happened with this port tragedy, and 467 00:21:18,880 --> 00:21:22,520 Speaker 7: so how imperative it is that we move fast on this. 468 00:21:22,880 --> 00:21:25,560 Speaker 7: It sits with me every single day, and I know 469 00:21:25,640 --> 00:21:27,679 Speaker 7: we are going to and I'm going to demand twenty 470 00:21:27,680 --> 00:21:31,320 Speaker 7: four to seven operations until we accomplish four goals. 471 00:21:31,480 --> 00:21:32,720 Speaker 3: Bring closure to. 472 00:21:32,720 --> 00:21:37,280 Speaker 7: These families, reopen these channels, make sure we're taking care 473 00:21:37,320 --> 00:21:39,800 Speaker 7: of our people who've been impacted by this, and getting 474 00:21:39,920 --> 00:21:40,840 Speaker 7: the bridge rebuilt. 475 00:21:40,960 --> 00:21:42,320 Speaker 2: Governor, how much money do you need? 476 00:21:45,760 --> 00:21:48,120 Speaker 7: Well, the truth is that we don't have an official 477 00:21:48,320 --> 00:21:51,800 Speaker 7: price tag on that right now. That we know this 478 00:21:51,880 --> 00:21:53,919 Speaker 7: is going to be a long journey. We know this 479 00:21:54,040 --> 00:21:56,399 Speaker 7: is going to be something that is expensive. 480 00:21:57,160 --> 00:21:58,480 Speaker 3: We also know though. 481 00:22:00,040 --> 00:22:02,320 Speaker 7: Taking place thus far, if you would have asked me 482 00:22:02,359 --> 00:22:05,200 Speaker 7: two weeks ago, seeing what I saw, and said that. 483 00:22:05,240 --> 00:22:07,000 Speaker 3: Two weeks later we would have two. 484 00:22:07,240 --> 00:22:10,160 Speaker 7: Commercial channels open, that by the end of this month 485 00:22:10,200 --> 00:22:12,119 Speaker 7: we should have up to a thirty five foot depth 486 00:22:12,119 --> 00:22:13,960 Speaker 7: and draft that should be able to get a lot 487 00:22:13,960 --> 00:22:16,520 Speaker 7: of the new cars and roll on roll off that 488 00:22:16,560 --> 00:22:18,679 Speaker 7: the Port of Baltimore relies on up and going, and 489 00:22:18,720 --> 00:22:20,480 Speaker 7: by the end of May we should have the port 490 00:22:20,760 --> 00:22:23,760 Speaker 7: fully functioning. I would have said, when you look at 491 00:22:23,800 --> 00:22:25,760 Speaker 7: the damage and the devastation that we saw. 492 00:22:25,800 --> 00:22:26,359 Speaker 3: I would have said that. 493 00:22:26,440 --> 00:22:29,840 Speaker 7: Seems very ambitious, but that's where we are, and so 494 00:22:29,920 --> 00:22:31,520 Speaker 7: we know this is going to be a long journey. 495 00:22:31,720 --> 00:22:34,119 Speaker 7: We know this is not going to be inexpensive journey, 496 00:22:34,280 --> 00:22:35,879 Speaker 7: but it's a journey that we all have got to 497 00:22:35,880 --> 00:22:39,199 Speaker 7: be committed to because this means everything to not just 498 00:22:39,280 --> 00:22:41,640 Speaker 7: our region and our state, but to the long term 499 00:22:41,680 --> 00:22:44,360 Speaker 7: growth of maritime operations in the American economy. 500 00:22:44,400 --> 00:22:46,320 Speaker 2: Governor, we appreciate your time, and I know this is 501 00:22:46,359 --> 00:22:48,439 Speaker 2: going to be a long route ahead for you, and 502 00:22:48,480 --> 00:22:50,240 Speaker 2: you'll stay and it's going to be an oncoming conversation 503 00:22:50,280 --> 00:22:51,919 Speaker 2: and hopefully we can sold you again in the future, 504 00:22:52,040 --> 00:22:55,560 Speaker 2: Governor Westmall, Thank you, sir, the governor that matter. That 505 00:22:55,680 --> 00:23:00,000 Speaker 2: difficult conversation difficult time. This is the Bloomberg Seventans podcast, 506 00:23:00,440 --> 00:23:04,359 Speaker 2: bringing you the best in markets, economics, angio politics. You 507 00:23:04,359 --> 00:23:07,159 Speaker 2: can watch the show live on Bloomberg TV weekday mornings 508 00:23:07,160 --> 00:23:10,080 Speaker 2: from six am to nine am Eastern. Subscribe to the 509 00:23:10,119 --> 00:23:13,639 Speaker 2: podcast on Apple, Spotify or anywhere else you listen, and 510 00:23:13,680 --> 00:23:16,800 Speaker 2: as always on the Bloomberg Terminal and the Bloomberg Business app.