Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Return to Republican Senator Bill Haggerty of Tennessee, who is
Speaker 2: back with us on the program. Senator, we appreciate your time.
Speaker 2: As we just heard our colleague Tyler, they're outlining that
Speaker 2: various portions of your body have demands as to what
Speaker 2: it will take to get them to a yes vote
Speaker 2: on this legislation. What's yours? What change do you need
Speaker 2: to see for you to vote for this package.
Speaker 3: I think the most critical thing to keep in mind, Kayley,
Speaker 3: is the fact that if we don't get this done,
Speaker 3: Americans looking at a north of four trillion dollar tax increase.
Speaker 3: I was talking with Kevin Hasset at the White House yesterday.
Speaker 3: His projections are that that would yield a six percent
Speaker 3: decrease in our nation's GDP. That would be terrible for America. Frankly,
Speaker 3: be terrible for the world economy. We can't let that happen.
Speaker 3: The main interest I have is making certain that we
Speaker 3: stimulate more capital investment in America, because more capital investment
Speaker 3: will be get more jobs, more jobs, more economic activity.
Speaker 3: This will have a very power of impact on the economy,
Speaker 3: and frankly, it's something that the Congressional Budget Office completely
Speaker 3: misses in their analysis. They missed it at an incredible
Speaker 3: level back after the twenty seventeen tax cuts and jobs
Speaker 3: after passed. In fact, they missed it by north of
Speaker 3: a trillion dollars worth of revenues. So I think that
Speaker 3: my colleagues need to certainly take into account the fact
Speaker 3: that this is a pro growth bill. This tax package
Speaker 3: is going to stimulate more economic activity here in America.
Speaker 3: We will see growth that's not captured in the CBO estimates,
Speaker 3: but will have a material impact on our economy, on
Speaker 3: our well being, and frankly in terms of going the
Speaker 3: right direction to reducing the deficit.
Speaker 1: Will Senator, We've got a lot of questions about what's inside,
Speaker 1: and it's great to have you back on Bloomberg. You
Speaker 1: mentioned the CBO, so I do have to ask you
Speaker 1: about that. Two big headlines today coming out of the
Speaker 1: Congressional Budget Office. First, the Republican tax bill that cleared
Speaker 1: the House. They say would add two point four trillion
Speaker 1: dollars to US deficits. But that same Congressional Budget Office,
Speaker 1: which I know Republicans criticize a lot, is not projecting
Speaker 1: the Trump tariffs. Will cut the budget gap by two
Speaker 1: point eight trillion. Do you buy that number? And if so,
Speaker 1: is this bill paid for?
Speaker 3: Well? In the first case, what they do is static analysis.
Speaker 3: They don't take into account the dynamic of investment in
Speaker 3: the economy that we yield grow. So I think that's
Speaker 3: patently wrong. And the second, with regard to tariff revenue,
Speaker 3: it's possible, but we're not nearly to the end of
Speaker 3: our trade negotiations, Jamison Greer. Our trade rep working is
Speaker 3: hard out to try to bring together a significant sea
Speaker 3: change and the way America is treated on the global stage.
Speaker 3: I think we're going to make great progress, but it's
Speaker 3: very hard for me to say right now, and I
Speaker 3: don't know how the CBO is able to say this.
Speaker 3: Where we're going to land on tariff revenues as well.
Speaker 2: Well, yeah, it is worth pointing out the CBO was
Speaker 2: only scoring tariff revenues through where tariff stood as of
Speaker 2: May thirteenth, and we already know changes have been made
Speaker 2: since then. There's still some legal questions around whether or
Speaker 2: not AIPA is going to stand, Senator, so we have
Speaker 2: to bear that in mind. We've heard from the Senate
Speaker 2: Majority Leader John fun that there's going to have to
Speaker 2: be some adjustments made to the salt cap, something that
Speaker 2: House Republicans from those salt districts say, what essentially mean
Speaker 2: that the deal dies when it returns back to the House,
Speaker 2: knowing that the debt ceiling lift is also attached to
Speaker 2: this legislation. Do you see risk around making changes like that?
Speaker 2: Could that bring the US closer to the brink of default?
Speaker 3: Well, I think there's always risk in any situation like
Speaker 3: this where you have a complex bill. Kyley, We're going
Speaker 3: to have a conference meeting right after I'm on with
Speaker 3: you now to begin the process of talking through where
Speaker 3: the Senate is going to land here, and I do
Speaker 3: expect that there'll be improvements. It will be different, they'll
Speaker 3: be deeper cuts, and we'll start to see texts coming
Speaker 3: out on Friday. What I don't want to do is
Speaker 3: try to get ahead of those who are negotiating. As
Speaker 3: you know, the Finance Committee is going to the White
Speaker 3: House right now to meet with President Trump. This is
Speaker 3: a process that's under way. But I can say this
Speaker 3: at a very high level. My colleagues in the Senate
Speaker 3: want to see more cuts, more definite reduction, but at
Speaker 3: the same time, I've been encouraging everyone to move expediously
Speaker 3: to make certain that this happens extremely quickly, because the
Speaker 3: United States economy needs certainty, and with that certainty, we're
Speaker 3: going to see more capital investment. The longer this takes again,
Speaker 3: the less certain that we've got, and that's going to
Speaker 3: have a negat impact on capital investment here in America.
Speaker 1: With that in mind, Senator, I'd love to explore the
Speaker 1: idea of permanence with you, because we're hearing about this
Speaker 1: a lot more now, the likes of Steve Danes and
Speaker 1: others who say, no, we need to make permanent certain
Speaker 1: business tax breaks, specifically the full research and development deduction,
Speaker 1: bonus depreciation, and interest expensing. Are you on board with
Speaker 1: making them permanent?
Speaker 3: Certainly I am. I agree with the premise completely, And
Speaker 3: you know, Steve Danes is a business person just like me.
Speaker 3: We understand the importance of being able to make long
Speaker 3: term plans with respect to capital investments. That's what's driving
Speaker 3: Steve's Steve's position, I think he's exactly right, and we
Speaker 3: need to extend these as far as we possibly can.
Speaker 3: Permanent is the best possible answer we could achieve.
Speaker 2: Senator. Of course, well, you and your colleagues are working
Speaker 2: on reconciliation. There is also active, actively underway, an effort
Speaker 2: to advance the stable coin legislation, the Genius Act. Last
Speaker 2: time you were on with us, we talked about some
Speaker 2: of the various amendments that we're being put forward, which
Speaker 2: you said are being worked through. Have you had direct
Speaker 2: conversations more recently with either the Majority Leader or Senator
Speaker 2: Roger Marshall about whether or not the Credit Card Competition
Speaker 2: Act is going to become a real factor here.
Speaker 3: Yes, those conversations are under way. I certainly respect the
Speaker 3: process that we're addressing, but right now this really isn't
Speaker 3: about policy, nor is it process. We're just trying to
Speaker 3: get floor time right now to get this processed. We
Speaker 3: have brought agreement, Kayley, with respect to the content of
Speaker 3: the stable coin legislation, my Genius Act, and this is
Speaker 3: going to, I think, take us into the twenty first
Speaker 3: century in terms of upgrading our payment systems. It's going
Speaker 3: to have very desirable effects taking the US economy into
Speaker 3: the digital assets arena, keeping innovation here, lowering risk here
Speaker 3: in America, and putting in place guardrails that will protect
Speaker 3: consumers because every one of these stable coins will be
Speaker 3: backed up dollar for dollar with US treasuries. Very positive
Speaker 3: outcome here, We've got very strong support.
Speaker 1: So okay, what's the timeline, Senator, and what does it
Speaker 1: mean for the Clarity Acts coming out of the House, Joe?
Speaker 3: The timeline is the key issue right now. The window
Speaker 3: is closing on us to get this done because we've
Speaker 3: got to turn our attention to reconciliation. As I mentioned,
Speaker 3: we're going to a conference meeting, our first broad conference meeting,
Speaker 3: to talk about the Reconciliation Bill. We need to get
Speaker 3: the Genius Act passed. We need to get it on
Speaker 3: the floor. And that's where my discussions have been with
Speaker 3: the Leader and with my colleagues, is getting that time
Speaker 3: on the floor as soon as possible. I like to
Speaker 3: start it today tomorrow, but I like to get that
Speaker 3: time on the floor as soon as possible because then
Speaker 3: we can turn our attention to dealing with the Reconciliation
Speaker 3: Act and getting more confirmations across the floor.
Speaker 2: And when will your attention, Senator turned to market structure
Speaker 2: And when the time comes to actually look at a
Speaker 2: market structure bill, how can do you expect it will
Speaker 2: be to the Clarity Act that was just introduced in
Speaker 2: the House last week.
Speaker 3: Well, there's been a great deal of good work that's
Speaker 3: been done in the House. A lot of questions that
Speaker 3: come up in the process of building the stable coin
Speaker 3: legislation that have been more appropriate to market structure. We're
Speaker 3: focused on it. We've already begun the process of building
Speaker 3: it here in the Senate. Again, as I mentioned, a
Speaker 3: lot of it's natural outgrowth, outgrowth of the stable coin
Speaker 3: legislation that we've been pushing forward. So we're going to
Speaker 3: turn our attention immediately to that. But I think the
Speaker 3: most immediate thing that will happen is the Reconciliation Bill
Speaker 3: coming to the floor of the Senate. In the meantime,
Speaker 3: I pledged to President Trump I would get this done
Speaker 3: in the first one hundred days if I possibly could.
Speaker 3: We've exceeded that by a bit. But President Trump wants
Speaker 3: to see this legislation on his desk. JD. Advance was
Speaker 3: at the Bitcoin conference in Las Vegas just last week
Speaker 3: saying he wants to see a clean bill in front
Speaker 3: of him on stable coin legislation in front of President Trump,
Speaker 3: and I think we can get there.
Speaker 1: Interesting, as you bear down on the reconciliation, tax and
Speaker 1: spend legislation. Here, Senator, I know it's going to be
Speaker 1: an important day, and you're walking into this meeting after
Speaker 1: we're done with our conversation to begin hearing from Republican
Speaker 1: members of the House who apparently didn't have enough time
Speaker 1: to read the whole bill. Congresswoman Marjorie Taylor Green says
Speaker 1: she's a no, having not read a section banning states
Speaker 1: from passing their own AI regulations. Mike Flood, Republican from Nebraska,
Speaker 1: doesn't like this idea making it harder for judges to
Speaker 1: hold officials and contempt of court. They both did see
Speaker 1: it in the first pass. Have you had a chance
Speaker 1: to read that bill?
Speaker 3: Having gone through the entirety of the bill, we're in
Speaker 3: the process of reviewing all the texts that just came
Speaker 3: over in the past couple of days. But again, we're
Speaker 3: moving on it. The Finance Committee is at the White
Speaker 3: House negotiating it right now. The text is in process,
Speaker 3: and it's an item that's in motion. I understand that
Speaker 3: there may be items here that not everyone is happy with,
Speaker 3: but at the end of the day, we're going to
Speaker 3: have to compromise and get it done. I'll come back
Speaker 3: to the original point. The American economy needs this certainty,
Speaker 3: and I'm going to be working my heart out to
Speaker 3: make certain that we deliver the best possible product we
Speaker 3: can here. But I'll remind you as well, this isn't
Speaker 3: the last bite at the apple. We'll have the opportunity
Speaker 3: to have another reconciliation process coming up fairly soon. So
Speaker 3: we're going to find a number of other opportunities to
Speaker 3: improve the situation you're in. The American economy achieves some
Speaker 3: of the other objectives our legislators, and we can. If
Speaker 3: we don't solve it all here, we'll have another opportunity
Speaker 3: to do that well.
Speaker 2: Senator, you will have an opportunity as soon as tonight
Speaker 2: to vote for the confirmation of Mickey Bowman to be
Speaker 2: the Fed's new Vice CHAIRFF Supervision after the closure vote
Speaker 2: passed earlier today. This comes just day after the FED
Speaker 2: officially lifted the asset cap on Wells Fargo starting today.
Speaker 2: Is this a new era of banking regulation in the
Speaker 2: United States?
Speaker 3: I certainly think so. Michael Barr took us in exactly
Speaker 3: the wrong direction, and I'm very glad to see someone
Speaker 3: with the sensibilities of Mickey coming into this position, She's
Speaker 3: going to do a great job. What we need to
Speaker 3: do is return to the overarching mission of making certain
Speaker 3: that our capital markets are as competitive and safe as
Speaker 3: they possibly can be. Get out of the business that
Speaker 3: these extraneous policy issues, whether it regards climate or other
Speaker 3: sorts of issues that essentially make the US economy less competitive,
Speaker 3: and the goal plating that Michael Barr attempted to do
Speaker 3: making US a subject even more regulations than the Europeans
Speaker 3: only Hamper's American Capital Formation. Mickey has a very different
Speaker 3: point of view, and I'm very excited to see her
Speaker 3: come into this role.
Speaker 1: Well, it is interesting seeing this asset cap lifted on
Speaker 1: Wells Fargo today. Senator, your colleague Elizabeth Warren, who's going
Speaker 1: to be with us a bit later this hour, is
Speaker 1: asking for five years of exam reports from the Bank
Speaker 1: as a member of the Banking Committee, having suggested that
Speaker 1: they have not gone a year without breaking the law.
Speaker 1: Statement says, it's stunning the Fed could not wait till
Speaker 1: the company went a full year without breaking the law
Speaker 1: before wiping its slate clean. Should she get those documents,
Speaker 1: should the committee see them?
Speaker 3: I'm all for transparency, Joe, And I'm all for having
Speaker 3: committee members have access to the information that they need,
Speaker 3: but I'm not about to respond to something that Elizabeth
Speaker 3: Warren has said just based on what she probably doesn't have.
Speaker 3: You know, she didn't have access to the documents at
Speaker 3: this point, so I don't understand her leveling these accusations,
Speaker 3: but she's wont to do that.
Speaker 2: Well, I wonder, Senator, if you'd like to respond to
Speaker 2: something President Trump has just said, as he shared with
Speaker 2: us on True Social that he spent an hour and
Speaker 2: fifteen minutes on the phone today with Russian President Vladimir Putin.
Speaker 2: He suggested that phone call will not lead to an
Speaker 2: immediate peace with Ukraine, but went on to say that
Speaker 2: Putin believes or suggested he could participate in discussions with
Speaker 2: Iron And of course, the US approach to Iran is
Speaker 2: something I know you feel quite passionate, passionately about. Is
Speaker 2: it appropriate for Russia to be stepping in here?
Speaker 3: Well, I think you understand well the fact that the
Speaker 3: previous administration removed all of the maximum pressure campaign that
Speaker 3: we had imposed on Iran. We had ran to a
Speaker 3: point where they were ready to deal. Their reserves were
Speaker 3: below ten billion dollars. As soon as the Biden administration
Speaker 3: came in, they stopped enforcing the sanctions. They put Iran
Speaker 3: in a position to fund terror. We saw what happened
Speaker 3: with Hamas, we saw what happened with Hasbalah, we saw
Speaker 3: what happened with the UTIs. We're bringing that situation back
Speaker 3: under control. We're putting back in place at maximum sanctions,
Speaker 3: and we also have the opportunity to get the world
Speaker 3: behind us, and I think the world should be behind
Speaker 3: us to ensure that Iran does not have the capability
Speaker 3: to threaten the rest of the world as they seem
Speaker 3: to want to do. President Trump has every right to
Speaker 3: seek out other world leaders, to find allies wherever you may,
Speaker 3: but at the end of the day, it's going to
Speaker 3: be up to us to take the leadership position to
Speaker 3: deal with Iran and to make certain that they don't
Speaker 3: have the capability or the capacity to threaten the rest
Speaker 3: of the world as they have in the past. And
Speaker 3: understand this, they're behind all of the terror and all
Speaker 3: the disruption in the Middle East. It's got to come
Speaker 3: to an end.
Speaker 1: A deep dive with Republican Senator Bill Haggerty of Tennessee.
Speaker 1: Senator it's good to see you, and we appreciate all
Speaker 1: of your time. Today on Bloomberg TV and radio,