1
00:00:00,080 --> 00:00:10,119
Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

2
00:00:10,119 --> 00:00:13,880
Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at

3
00:00:13,920 --> 00:00:17,440
Speaker 1: noon and five pm Eastern on Applecarclay, and Android Auto

4
00:00:17,520 --> 00:00:20,680
Speaker 1: with the Bloomberg Business App. Listen on demand wherever you

5
00:00:20,720 --> 00:00:25,080
Speaker 1: get your podcasts, or watch us live on YouTube.

6
00:00:25,440 --> 00:00:29,040
Speaker 2: Welcome to Little Friday, Thursday edition of Balance of Power

7
00:00:29,160 --> 00:00:32,400
Speaker 2: Live on Bloomberg Radio, the satellite radio channel one twenty

8
00:00:32,440 --> 00:00:35,520
Speaker 2: one on Serious Exam, and of course on YouTube, where

9
00:00:35,520 --> 00:00:38,560
Speaker 2: you can find us now by searching Bloomberg Business News Live.

10
00:00:38,600 --> 00:00:40,720
Speaker 2: If you like me, you can also catch us on

11
00:00:40,760 --> 00:00:45,720
Speaker 2: the Bloomberg Business News App. Find us live on the app,

12
00:00:45,720 --> 00:00:48,600
Speaker 2: plug us in the car, play on your way to work.

13
00:00:48,960 --> 00:00:52,080
Speaker 2: So many ways to catch the program. And I wonder

14
00:00:52,120 --> 00:00:56,560
Speaker 2: what will Charlie Pellett tell us on the day they

15
00:00:56,640 --> 00:00:59,600
Speaker 2: cut a deal on salt? Could that be today? Do

16
00:00:59,640 --> 00:01:01,960
Speaker 2: we get a rally the minute that's announced? Think about

17
00:01:01,960 --> 00:01:06,560
Speaker 2: where all of these traders actually live in places like

18
00:01:06,600 --> 00:01:10,160
Speaker 2: New York, Connecticut, New Jersey. And I bring this up

19
00:01:10,160 --> 00:01:12,520
Speaker 2: because there's an important meeting happening today on Capitol Hill

20
00:01:12,520 --> 00:01:16,080
Speaker 2: as we try to align the stars for a vote

21
00:01:16,080 --> 00:01:18,960
Speaker 2: next week in the House. At least that's Mike Johnson's

22
00:01:19,040 --> 00:01:23,399
Speaker 2: job on reconciliation to pull all together this big mess

23
00:01:23,400 --> 00:01:25,360
Speaker 2: of bills and try to get something passed so it

24
00:01:25,400 --> 00:01:27,200
Speaker 2: can go to the Senate. He wants this done before

25
00:01:27,240 --> 00:01:30,279
Speaker 2: Memorial Day recess, but they can't get it done until

26
00:01:30,280 --> 00:01:33,520
Speaker 2: there's a deal yes on Bloomberg's favorite story, salt the

27
00:01:33,560 --> 00:01:38,240
Speaker 2: State and local tax deduction, and not everybody's getting along

28
00:01:38,240 --> 00:01:40,160
Speaker 2: on this. You've got the salty Republicans. We brought you

29
00:01:40,200 --> 00:01:42,640
Speaker 2: conversations with many of them from yes dates like New York,

30
00:01:43,120 --> 00:01:45,520
Speaker 2: as I mentioned, New Jersey and so on, California too.

31
00:01:46,240 --> 00:01:48,280
Speaker 2: You've got the Freedom Caucus. They don't like this idea

32
00:01:48,320 --> 00:01:51,320
Speaker 2: at all. They call it a blue state giveaway. Then

33
00:01:51,360 --> 00:01:53,680
Speaker 2: you've got other members of the House looking for even

34
00:01:53,720 --> 00:01:56,520
Speaker 2: steeper cutts, and Mike Johnson has to corral them all.

35
00:01:56,800 --> 00:02:00,960
Speaker 2: Speaking of salty Republicans, we spent some time with Congressman

36
00:02:01,200 --> 00:02:04,400
Speaker 2: Lolota on the late edition of Balance of Power, his

37
00:02:04,480 --> 00:02:07,320
Speaker 2: view from New York and specifically remembering it's a ten

38
00:02:07,400 --> 00:02:11,359
Speaker 2: thousand dollars cap right now, This idea of maybe forty

39
00:02:11,440 --> 00:02:14,560
Speaker 2: eighty forty for an individual, eighty for a couple, is

40
00:02:14,600 --> 00:02:17,040
Speaker 2: that going to grease the skids. Is that the final number.

41
00:02:17,080 --> 00:02:17,880
Speaker 2: Here's his reaction.

42
00:02:19,040 --> 00:02:23,480
Speaker 3: Maybe forty eighty will be an ultimate proposal. So far, unfortunately,

43
00:02:23,560 --> 00:02:26,760
Speaker 3: the Ways and Means Committee has not offered us anything

44
00:02:27,000 --> 00:02:28,080
Speaker 3: anywhere close to that.

45
00:02:28,560 --> 00:02:32,040
Speaker 4: Sadly, they've been stubborn and not gave us anything that

46
00:02:32,080 --> 00:02:34,320
Speaker 4: we could possibly say yes to. We got to go

47
00:02:34,400 --> 00:02:36,720
Speaker 4: back home and sell this and a low thirty k

48
00:02:36,840 --> 00:02:39,360
Speaker 4: cap when unlimited would come at the end of the

49
00:02:39,400 --> 00:02:42,959
Speaker 4: year if this bill expires, wouldn't be sufficient for my constituents.

50
00:02:44,120 --> 00:02:48,600
Speaker 2: Nick Lolota, first District, New York, Long Island. Is that

51
00:02:48,639 --> 00:02:54,240
Speaker 2: your congressman, Producer James it Is. I thought so, and

52
00:02:54,320 --> 00:02:56,440
Speaker 2: so they're all going to argue this out here, but

53
00:02:56,480 --> 00:02:57,840
Speaker 2: nobody wants to show their cards.

54
00:02:57,919 --> 00:02:58,040
Speaker 5: Right.

55
00:02:58,080 --> 00:03:01,360
Speaker 2: Thirty thousand dollars is floated as a limit. It not

56
00:03:01,480 --> 00:03:04,920
Speaker 2: acceptable according to most of the delegation in New York

57
00:03:05,080 --> 00:03:08,080
Speaker 2: and related states. And so where do we fall here.

58
00:03:08,639 --> 00:03:11,960
Speaker 2: Jack Fitzpatrick is watching this very closely on Capitol Hill

59
00:03:12,000 --> 00:03:15,560
Speaker 2: and joins us right now from his perch at Bloomberg Government. Jack,

60
00:03:15,600 --> 00:03:18,320
Speaker 2: we just heard from the speaker here. We're very very

61
00:03:18,360 --> 00:03:22,360
Speaker 2: close to assault deal. We're still on path for the

62
00:03:22,360 --> 00:03:24,760
Speaker 2: bill to pass next week. Is he just being optimistic

63
00:03:24,840 --> 00:03:25,960
Speaker 2: or did something happen.

64
00:03:26,639 --> 00:03:30,360
Speaker 6: He is being optimistic, It doesn't sound like there's a

65
00:03:30,639 --> 00:03:34,040
Speaker 6: concrete development that has happened today. That's not to say

66
00:03:34,080 --> 00:03:38,000
Speaker 6: they're not making progress. They're holding these meetings, they're continuing

67
00:03:38,040 --> 00:03:42,440
Speaker 6: to negotiate. But we've heard a pretty positive, optimistic series

68
00:03:42,520 --> 00:03:45,000
Speaker 6: of comments from the Speaker of the last few days,

69
00:03:45,400 --> 00:03:48,240
Speaker 6: and then when you check with the Salt Republicans, it's

70
00:03:48,280 --> 00:03:51,920
Speaker 6: a little bit more skeptical. There's an increasing amount of

71
00:03:51,960 --> 00:03:53,840
Speaker 6: frustration from the Conservatives.

72
00:03:54,040 --> 00:03:54,600
Speaker 7: So there was a.

73
00:03:54,560 --> 00:03:58,840
Speaker 6: Meeting this morning where the Speaker met with some Freedom

74
00:03:58,880 --> 00:04:03,360
Speaker 6: Caucus conservative as well as the Salt Republicans. We heard

75
00:04:03,400 --> 00:04:06,240
Speaker 6: from Young Kim from California, who wants a higher salt rate,

76
00:04:06,320 --> 00:04:10,320
Speaker 6: who just said they're still negotiating. We heard from Chip Roy,

77
00:04:10,640 --> 00:04:14,960
Speaker 6: who's an unhappy Conservative, unhappy with the bill as it

78
00:04:14,960 --> 00:04:18,280
Speaker 6: stands right now. He says he still has problems with

79
00:04:18,320 --> 00:04:21,599
Speaker 6: the fact that the Medicaid changes wouldn't occur until twenty

80
00:04:21,600 --> 00:04:24,200
Speaker 6: twenty nine. He doesn't really think it's a conservative enough bill.

81
00:04:24,480 --> 00:04:26,479
Speaker 6: So there's still some work left to do to get

82
00:04:26,480 --> 00:04:28,920
Speaker 6: this together. As far as the possibility of a vote

83
00:04:28,960 --> 00:04:31,360
Speaker 6: next week. Sure, next week is next week. They're still

84
00:04:31,360 --> 00:04:34,080
Speaker 6: working on it, but there is some work left to do.

85
00:04:35,520 --> 00:04:38,240
Speaker 2: Is chip Roy ever happy? Just to digress for role,

86
00:04:38,240 --> 00:04:40,200
Speaker 2: I mean, it's his job to be unhappy, right, That's

87
00:04:40,920 --> 00:04:43,800
Speaker 2: the lemany pulls. As a member of the Freedom Caucus.

88
00:04:44,400 --> 00:04:47,880
Speaker 6: That is usually true, but it's been unusual this year

89
00:04:48,040 --> 00:04:51,480
Speaker 6: or so. The Freedom Caucus members have been much happier,

90
00:04:51,680 --> 00:04:56,120
Speaker 6: much happier specifically with the leadership approach than usual. Mike

91
00:04:56,200 --> 00:04:59,200
Speaker 6: Johnson is not in the position of a John Bayner

92
00:04:59,480 --> 00:05:02,200
Speaker 6: chip Roy. They got a victory when they voted on

93
00:05:02,240 --> 00:05:05,320
Speaker 6: the framework before it was an actual bill to increase

94
00:05:05,360 --> 00:05:08,920
Speaker 6: the goal for spending cuts. Now they're not wholly following

95
00:05:08,920 --> 00:05:11,480
Speaker 6: through on that, but they have kind of played ball

96
00:05:11,560 --> 00:05:13,800
Speaker 6: with chip Roy, with Andy Harris, the leader of the

97
00:05:13,800 --> 00:05:17,640
Speaker 6: Freedom Caucus. It's just a question of how happy or

98
00:05:17,760 --> 00:05:21,680
Speaker 6: unhappy do these compromising figures feel. When we're actually at

99
00:05:21,720 --> 00:05:24,000
Speaker 6: the very end, at the finish line.

100
00:05:24,360 --> 00:05:27,200
Speaker 2: We're hearing more from speaker Johnson is talking to reporters

101
00:05:27,240 --> 00:05:29,280
Speaker 2: Jack as we hold you up here in the rotunda.

102
00:05:29,360 --> 00:05:31,880
Speaker 2: If you do more on salt, he says, you have

103
00:05:31,920 --> 00:05:34,640
Speaker 2: to do more on savings. This doesn't sound like we're

104
00:05:34,640 --> 00:05:35,840
Speaker 2: anywhere near a deal, does it?

105
00:05:37,040 --> 00:05:39,880
Speaker 6: Well, that's the fundamental issue is if you give more

106
00:05:40,240 --> 00:05:44,359
Speaker 6: to the handful of holdouts from high tax blue states,

107
00:05:44,839 --> 00:05:48,960
Speaker 6: it changes the math. If you create more tax expenditures,

108
00:05:49,200 --> 00:05:51,520
Speaker 6: the conservatives are going to be less happy and you're

109
00:05:51,520 --> 00:05:55,560
Speaker 6: going to have a harder push, possibly focused on Medicaid,

110
00:05:55,839 --> 00:05:59,560
Speaker 6: maybe bumping that twenty nine date up a year or two.

111
00:06:00,040 --> 00:06:02,360
Speaker 6: And then that raises questions about some of the moderates

112
00:06:02,360 --> 00:06:05,400
Speaker 6: who are not very comfortable with the amount of Medicaid cuts.

113
00:06:05,600 --> 00:06:07,400
Speaker 6: How does that do in the House, How does that

114
00:06:07,440 --> 00:06:09,799
Speaker 6: do in the Senate where Josh Holly has been pretty

115
00:06:09,800 --> 00:06:14,200
Speaker 6: outspoken against medicaid cuts. So it's hard to change the

116
00:06:14,240 --> 00:06:17,159
Speaker 6: pieces of this puzzle without just shaking it up entirely.

117
00:06:18,279 --> 00:06:21,280
Speaker 2: Yeah, well, just to follow the bouncing ball here, and

118
00:06:21,320 --> 00:06:24,200
Speaker 2: I know that you're an expert on procedure when it

119
00:06:24,200 --> 00:06:27,400
Speaker 2: comes to appropriations, Jack, this needs to kind of get

120
00:06:27,440 --> 00:06:30,120
Speaker 2: done by tomorrow, right The House Budget Committee is waiting

121
00:06:30,160 --> 00:06:32,720
Speaker 2: to assemble all of these pieces on Monday, so this

122
00:06:32,760 --> 00:06:34,919
Speaker 2: can go to rules or tomorrow rather Friday, so it

123
00:06:34,920 --> 00:06:38,599
Speaker 2: can go to rules on Monday. Are these dates about

124
00:06:38,600 --> 00:06:40,880
Speaker 2: the change based on the salt standoff?

125
00:06:41,800 --> 00:06:44,599
Speaker 6: They could change if this drags on, but they don't

126
00:06:44,680 --> 00:06:47,320
Speaker 6: need a deal before going to the Budget Committee. They

127
00:06:47,360 --> 00:06:50,760
Speaker 6: can really the Budget Committee just packages these disparate bills

128
00:06:50,760 --> 00:06:54,120
Speaker 6: together because that's its role in all of this, and

129
00:06:54,160 --> 00:06:56,719
Speaker 6: then they can do an amendment in the Rules Committee,

130
00:06:56,720 --> 00:06:59,360
Speaker 6: which is supposed to meet on Monday, so they still

131
00:06:59,440 --> 00:07:02,839
Speaker 6: can work through the weekend if necessary, and make changes

132
00:07:02,960 --> 00:07:05,800
Speaker 6: as of the Rules Committee meeting before they take it

133
00:07:05,800 --> 00:07:07,600
Speaker 6: to the floor for a vote.

134
00:07:08,600 --> 00:07:12,800
Speaker 2: Can you qualify what happened with Medicaid, Jack, We've heard

135
00:07:12,840 --> 00:07:16,400
Speaker 2: so much about cuts to Medicaid. Republicans say they aren't cuts,

136
00:07:16,680 --> 00:07:19,920
Speaker 2: We're just making the program more efficient and more strict

137
00:07:19,920 --> 00:07:22,960
Speaker 2: when it comes to able bodied men. Is this a

138
00:07:23,040 --> 00:07:27,160
Speaker 2: cut to the program or a streamlining of Medicaid? Or

139
00:07:27,200 --> 00:07:29,320
Speaker 2: is this just about rhetoric? At this point, where are

140
00:07:29,360 --> 00:07:29,920
Speaker 2: the dollars?

141
00:07:31,000 --> 00:07:33,600
Speaker 6: The word cut is kind of a fraught term in

142
00:07:33,680 --> 00:07:37,800
Speaker 6: Capitol Hill. It would reduce the trajectory of future spending.

143
00:07:38,160 --> 00:07:40,840
Speaker 6: It would not spend more, it would spend less compared

144
00:07:40,840 --> 00:07:45,400
Speaker 6: to the baseline. It is very significantly focused to able

145
00:07:45,440 --> 00:07:50,320
Speaker 6: bodied adults. Ultimately, that would lead to seven point seven

146
00:07:50,360 --> 00:07:53,600
Speaker 6: million people who currently have health insurance not having health

147
00:07:53,640 --> 00:07:56,600
Speaker 6: insurance according to the Congressional Budget Office. But yes, the

148
00:07:56,640 --> 00:07:59,080
Speaker 6: point that the conservatives have made that this is not

149
00:07:59,240 --> 00:08:02,080
Speaker 6: just taking insure, it's away from everybody who needs it.

150
00:08:02,080 --> 00:08:06,600
Speaker 6: It's focused on able bodied adults who are not working.

151
00:08:07,160 --> 00:08:10,480
Speaker 6: That is true. That's the focus of that measure on medicaid.

152
00:08:10,640 --> 00:08:13,720
Speaker 2: Yep. All right, and then we get to food stamps.

153
00:08:14,120 --> 00:08:16,800
Speaker 2: Tell our listeners and viewers what happened in the Agriculture

154
00:08:16,800 --> 00:08:20,680
Speaker 2: Committee twenty nine to twenty five party lines here to

155
00:08:20,720 --> 00:08:24,360
Speaker 2: cut as much as three hundred billion dollars in food

156
00:08:24,560 --> 00:08:26,480
Speaker 2: aid spending. Is that accurate?

157
00:08:27,880 --> 00:08:29,840
Speaker 6: Yes, as far as we know, and I think we're

158
00:08:29,840 --> 00:08:32,400
Speaker 6: going to continue to see holistic numbers come out from

159
00:08:32,440 --> 00:08:35,679
Speaker 6: the CBO and other think tanks. But the major change

160
00:08:35,720 --> 00:08:41,080
Speaker 6: to snap nutrition benefits is a shift from fully federally

161
00:08:41,120 --> 00:08:43,920
Speaker 6: funded to some burden being on states.

162
00:08:43,960 --> 00:08:44,080
Speaker 5: Now.

163
00:08:44,120 --> 00:08:48,000
Speaker 6: The baseline they laid out is five percent contributions from states,

164
00:08:48,200 --> 00:08:50,280
Speaker 6: but then there's a penalty for states that have a

165
00:08:50,360 --> 00:08:53,559
Speaker 6: history of not being totally accurate in terms of who's

166
00:08:53,600 --> 00:08:54,360
Speaker 6: eligible for it.

167
00:08:54,440 --> 00:08:55,319
Speaker 7: That could raise it up.

168
00:08:55,240 --> 00:08:58,320
Speaker 6: To twenty five percent matching from states, and that would

169
00:08:58,320 --> 00:09:01,040
Speaker 6: apply historically to about half the states in the country.

170
00:09:01,040 --> 00:09:01,520
Speaker 5: So it's a.

171
00:09:01,440 --> 00:09:06,000
Speaker 6: Significant shift towards the burden being on states for funding that.

172
00:09:06,080 --> 00:09:09,040
Speaker 2: Right. Of course, I'm now supposed to ask you if

173
00:09:09,080 --> 00:09:10,640
Speaker 2: all of this is going to change when it goes

174
00:09:10,679 --> 00:09:12,360
Speaker 2: to the Senate, but I'm pretty sure that a lot

175
00:09:12,360 --> 00:09:14,280
Speaker 2: of it is. Jack will let you get back to

176
00:09:14,320 --> 00:09:17,720
Speaker 2: your coverage in the House of Representatives. Jack Fitzpatrick covering

177
00:09:17,840 --> 00:09:20,760
Speaker 2: this process for us at Bloomberg Government, our Congress reporter.

178
00:09:20,840 --> 00:09:23,200
Speaker 2: You can find him on the terminal of courses online

179
00:09:23,200 --> 00:09:24,800
Speaker 2: and as often as we can get him on this program.

180
00:09:24,920 --> 00:09:27,120
Speaker 2: Jack knows what he's talking about. That is the latest

181
00:09:27,480 --> 00:09:31,160
Speaker 2: that we have here, remembering budget tomorrow to assemble this

182
00:09:31,240 --> 00:09:33,680
Speaker 2: thing before it goes. If they get it done to

183
00:09:33,800 --> 00:09:37,160
Speaker 2: a floor vote next week, if we get a salt deal,

184
00:09:37,880 --> 00:09:39,920
Speaker 2: the earth will shake a bit around here. We'll let

185
00:09:40,000 --> 00:09:41,400
Speaker 2: you know as soon as it happens, and you know,

186
00:09:41,440 --> 00:09:43,079
Speaker 2: you'll have a red headline on the terminal.

187
00:09:45,160 --> 00:09:48,640
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch

188
00:09:48,679 --> 00:09:51,760
Speaker 1: us live weekdays at noon and five pm Eastern on

189
00:09:51,880 --> 00:09:55,120
Speaker 1: Apple Cocklay and Android Auto with the Bloomberg Business app.

190
00:09:55,160 --> 00:09:58,160
Speaker 1: You can also listen live on Amazon Alexa from our

191
00:09:58,200 --> 00:10:02,720
Speaker 1: flagship New York station Just say Alexa played Bloomberg eleven thirty.

192
00:10:04,200 --> 00:10:06,880
Speaker 8: On Capitol Hill, the work continues on trying to find

193
00:10:06,880 --> 00:10:10,120
Speaker 8: a consensus around the Salt cap so that House Republicans

194
00:10:10,120 --> 00:10:12,840
Speaker 8: can move forward with a floor vote next week. At

195
00:10:12,920 --> 00:10:17,000
Speaker 8: least that's the goal, according to the Speaker on budget reconciliation. This,

196
00:10:17,120 --> 00:10:19,400
Speaker 8: of course, is one of the biggest outstanding issues is

197
00:10:19,480 --> 00:10:21,920
Speaker 8: some of those members of the Republican Conference who come

198
00:10:21,920 --> 00:10:24,520
Speaker 8: from blue states are willing to die, it seems, politically

199
00:10:24,920 --> 00:10:28,000
Speaker 8: on the Salt Hill, pushing for a number higher than

200
00:10:28,160 --> 00:10:30,600
Speaker 8: the thirty thousand which was included in the tax bill

201
00:10:30,600 --> 00:10:34,280
Speaker 8: that passed through the Ways and Means Committee yesterday. The

202
00:10:34,320 --> 00:10:38,200
Speaker 8: negotiations continued this morning. The Speaker says they're going to

203
00:10:38,240 --> 00:10:41,560
Speaker 8: continue through the weekend to try to find a solve here.

204
00:10:41,679 --> 00:10:44,360
Speaker 8: And of course we know that a number of numbers

205
00:10:44,400 --> 00:10:47,480
Speaker 8: have been thrown out there by members of the Salt Caucus,

206
00:10:47,480 --> 00:10:50,400
Speaker 8: including Congressman nik Loloda, the Republican from New York who

207
00:10:50,440 --> 00:10:52,160
Speaker 8: was with us on the late edition of Balance of

208
00:10:52,200 --> 00:10:56,000
Speaker 8: Power yesterday, on the idea of forty eighty being the

209
00:10:56,000 --> 00:10:56,600
Speaker 8: sweet spot.

210
00:10:57,600 --> 00:11:02,040
Speaker 3: Maybe forty eighty will be an ultimate proposal. So far, unfortunately,

211
00:11:02,120 --> 00:11:05,319
Speaker 3: the Ways and means Committee has not offered us anything

212
00:11:05,559 --> 00:11:06,640
Speaker 3: anywhere close to that.

213
00:11:07,120 --> 00:11:10,560
Speaker 4: Sadly, they've been stubborn and not gave us anything that

214
00:11:10,640 --> 00:11:12,880
Speaker 4: we could possibly say yes to. We got to go

215
00:11:12,920 --> 00:11:15,280
Speaker 4: back home and sell this, and a low thirty k

216
00:11:15,400 --> 00:11:17,920
Speaker 4: cap when unlimited would come at the end of the

217
00:11:17,960 --> 00:11:21,520
Speaker 4: year if this bill expires, wouldn't be sufficient for my constituents.

218
00:11:22,960 --> 00:11:25,080
Speaker 2: So again, he's got to go home to New York

219
00:11:25,160 --> 00:11:29,000
Speaker 2: to sell this. And Congressman Lolota was not having too

220
00:11:29,120 --> 00:11:31,400
Speaker 2: much of this idea of a cap at thirty thousand

221
00:11:31,480 --> 00:11:36,880
Speaker 2: dollars for individuals, never mind the forty eighty that Kaylee

222
00:11:36,880 --> 00:11:39,560
Speaker 2: threw out there. It's where we start our conversation with

223
00:11:39,640 --> 00:11:43,880
Speaker 2: Congressman Marlin Stutsman, the Republican representing Indiana's third district. Is

224
00:11:43,880 --> 00:11:46,200
Speaker 2: where it's live from Capitol Hill. Congressman, it's great to

225
00:11:46,200 --> 00:11:48,679
Speaker 2: have you back on Bloomberg TV and Radio. A lot

226
00:11:48,760 --> 00:11:51,320
Speaker 2: of things need to happen pretty quickly. Here we put

227
00:11:51,320 --> 00:11:53,400
Speaker 2: the pieces together. If we follow the plan here on

228
00:11:53,440 --> 00:11:55,520
Speaker 2: the timeline laid out by the Speaker and the Budget

229
00:11:55,520 --> 00:11:58,480
Speaker 2: Committee tomorrow, Rules Committee picks it up on Monday, you

230
00:11:58,520 --> 00:12:01,400
Speaker 2: get a floor vote next week. Is salt the biggest

231
00:12:01,440 --> 00:12:03,360
Speaker 2: obstacle to getting this done right now.

232
00:12:03,960 --> 00:12:05,839
Speaker 7: Well, it's one of them, and Joe, it's great to

233
00:12:05,880 --> 00:12:09,400
Speaker 7: be with you and Kayley again, it is. There's a

234
00:12:09,440 --> 00:12:12,360
Speaker 7: lot of conversations happening today and a lot of you know,

235
00:12:12,440 --> 00:12:16,120
Speaker 7: last minute meetings trying to find these compromises. And I

236
00:12:16,200 --> 00:12:19,640
Speaker 7: understand you know that you know the members from New York,

237
00:12:19,679 --> 00:12:23,040
Speaker 7: New Jersey, California, those salt districts, there's a handful of

238
00:12:23,080 --> 00:12:26,400
Speaker 7: them that represent Republican districts that this is an important

239
00:12:26,400 --> 00:12:29,160
Speaker 7: issue for them. You know, my message has been, look,

240
00:12:29,240 --> 00:12:31,920
Speaker 7: I'm willing to work with you all. I understand. I

241
00:12:31,960 --> 00:12:34,320
Speaker 7: don't like it because I feel like, you know, here

242
00:12:34,360 --> 00:12:38,600
Speaker 7: we have hoosiers from Indiana that are are are getting

243
00:12:38,600 --> 00:12:42,120
Speaker 7: a They're not getting the same benefit that these liberal

244
00:12:42,280 --> 00:12:45,600
Speaker 7: spending states are getting as far as the taxpayers there.

245
00:12:45,640 --> 00:12:48,360
Speaker 7: But these are Republican members fighting for their districts. I

246
00:12:48,440 --> 00:12:50,320
Speaker 7: understand that. But I think there should be an offset

247
00:12:50,600 --> 00:12:54,160
Speaker 7: or a compromise. Let's, you know, defund planned parenthood, Let's

248
00:12:54,400 --> 00:12:58,960
Speaker 7: make some sort of adjustments to to the Medicaid waivers.

249
00:12:58,960 --> 00:13:02,640
Speaker 7: We've got to reduce our healthcare costs. That's the bigger

250
00:13:03,280 --> 00:13:05,800
Speaker 7: item that really is blowing up the budget, and we've

251
00:13:05,800 --> 00:13:08,120
Speaker 7: got to address healthcare costs at some point. So I

252
00:13:08,200 --> 00:13:10,480
Speaker 7: understand where they're coming from, but let's work together and

253
00:13:10,480 --> 00:13:11,640
Speaker 7: I think that can happen.

254
00:13:12,920 --> 00:13:13,079
Speaker 5: Well.

255
00:13:13,120 --> 00:13:15,480
Speaker 8: And we did hear suggestion from the Speaker that if

256
00:13:15,520 --> 00:13:17,840
Speaker 8: they want to increase the salt cap, you're going to

257
00:13:17,920 --> 00:13:21,280
Speaker 8: have to find more spending offsets. Is it your assumption, Congressman,

258
00:13:21,320 --> 00:13:24,079
Speaker 8: that that only really substantially can come with even further

259
00:13:24,160 --> 00:13:27,360
Speaker 8: cuts to medicaid beyond what just went through the Energy

260
00:13:27,400 --> 00:13:28,320
Speaker 8: and Commerce commit.

261
00:13:29,200 --> 00:13:31,600
Speaker 7: Well, we'll see, and now you know, we'll find out here.

262
00:13:31,600 --> 00:13:34,040
Speaker 7: We're going to have conference here in just a couple

263
00:13:34,040 --> 00:13:36,280
Speaker 7: of hours and all of the chairmen are going to

264
00:13:36,320 --> 00:13:39,080
Speaker 7: be reporting to all of the members in the House

265
00:13:39,120 --> 00:13:45,240
Speaker 7: Republican Conference their work, so we'll know more. But either way,

266
00:13:45,360 --> 00:13:48,680
Speaker 7: we know that we're on the wrong trajectory and we've

267
00:13:48,679 --> 00:13:51,559
Speaker 7: got to find savings sooner rather than later. I think

268
00:13:51,600 --> 00:13:55,199
Speaker 7: the bigger piece that frustrates me and some other budget

269
00:13:55,200 --> 00:13:58,400
Speaker 7: hawks is that we're pushing these savings out four years

270
00:13:58,440 --> 00:14:00,360
Speaker 7: six years. We need to do them right away. The

271
00:14:00,400 --> 00:14:03,440
Speaker 7: dog team is obviously going to help with that, but

272
00:14:04,440 --> 00:14:06,280
Speaker 7: we don't want to see gimmicks. We want to see

273
00:14:06,520 --> 00:14:09,840
Speaker 7: action now rather than pushing it down the road. We

274
00:14:10,000 --> 00:14:13,520
Speaker 7: know healthcare is something that has to be addressed. Now's

275
00:14:13,520 --> 00:14:15,480
Speaker 7: a good time to do it. Making sure able bodied

276
00:14:15,520 --> 00:14:19,360
Speaker 7: Americans aren't taking advantage of Medicaid and making sure that

277
00:14:19,360 --> 00:14:22,600
Speaker 7: that's really there for those folks who really need it

278
00:14:22,600 --> 00:14:23,360
Speaker 7: and are vulnerable.

279
00:14:24,920 --> 00:14:27,280
Speaker 2: There is an important meeting, as we discuss here at

280
00:14:27,320 --> 00:14:32,480
Speaker 2: two thirty pm Washington time, the whole Republican House Conference

281
00:14:32,520 --> 00:14:35,520
Speaker 2: gets together behind closed doors to have this out. Congressman,

282
00:14:35,520 --> 00:14:39,680
Speaker 2: we keep reading about warring factions inside the conference, a

283
00:14:39,720 --> 00:14:43,479
Speaker 2: freedom caucus that's not getting along with the salty Republicans.

284
00:14:43,480 --> 00:14:45,560
Speaker 2: Who's going to be the loudest in this meeting? And

285
00:14:45,600 --> 00:14:46,480
Speaker 2: what will it generate?

286
00:14:47,280 --> 00:14:49,560
Speaker 7: Yeah, well, you know, it's a lot like a family discussion.

287
00:14:49,640 --> 00:14:52,120
Speaker 7: You know, I have three siblings, and there was times

288
00:14:52,200 --> 00:14:54,040
Speaker 7: mom and dad called us all together and we had

289
00:14:54,040 --> 00:14:56,720
Speaker 7: it out, but we walked out as a family. And

290
00:14:56,800 --> 00:14:58,480
Speaker 7: I know that's what's going to happen here. You know,

291
00:14:58,560 --> 00:15:01,040
Speaker 7: Republicans are we know, you know what we have to do,

292
00:15:01,120 --> 00:15:04,160
Speaker 7: making sure the Trump tax cuts are in place, you know,

293
00:15:04,320 --> 00:15:07,320
Speaker 7: over the next five to ten years, making them permanent

294
00:15:07,320 --> 00:15:11,120
Speaker 7: if possible, We're going to also focus on the President's agenda,

295
00:15:11,160 --> 00:15:14,320
Speaker 7: you know, no tax on tips, no tax on Social Security,

296
00:15:14,320 --> 00:15:17,480
Speaker 7: and his other items that he has. This is just

297
00:15:17,680 --> 00:15:20,080
Speaker 7: the you know, the meeting that we have to make

298
00:15:20,120 --> 00:15:23,120
Speaker 7: sure that every voice is heard, and Speaker Mike Johnson

299
00:15:23,120 --> 00:15:25,040
Speaker 7: has done a good job at that, making sure that

300
00:15:25,400 --> 00:15:28,320
Speaker 7: every part of our conference is being heard, and I

301
00:15:28,360 --> 00:15:31,520
Speaker 7: know that's valuable to every person. At least we have

302
00:15:31,560 --> 00:15:33,720
Speaker 7: the opportunity to go back home and tell our constituents,

303
00:15:34,040 --> 00:15:36,960
Speaker 7: I made the case, I did everything I could. But

304
00:15:37,000 --> 00:15:38,440
Speaker 7: we're not always going to get what we want. But

305
00:15:38,480 --> 00:15:40,400
Speaker 7: I do think at the end, this is a bill

306
00:15:40,440 --> 00:15:43,920
Speaker 7: that's really important for the American people. It you know,

307
00:15:44,040 --> 00:15:48,000
Speaker 7: unleashes our energy production. It's going to focus on, of course,

308
00:15:48,040 --> 00:15:52,280
Speaker 7: our tax policy, but reducing regulation. It is that big,

309
00:15:52,320 --> 00:15:54,760
Speaker 7: beautiful bill, and that's why it's a little harder to

310
00:15:54,800 --> 00:15:56,840
Speaker 7: lift it across the finish line because there's so many

311
00:15:56,880 --> 00:15:59,120
Speaker 7: facets to it. But I truly believe we're going to get.

312
00:15:59,000 --> 00:16:02,320
Speaker 8: It done well. Of course, it is the Budget Committee

313
00:16:02,360 --> 00:16:04,120
Speaker 8: on which you sit that is actually going to make

314
00:16:04,160 --> 00:16:06,280
Speaker 8: this one big beautiful bill. Take all of the disparate

315
00:16:06,320 --> 00:16:08,360
Speaker 8: pieces that have passed through the various committees and put

316
00:16:08,360 --> 00:16:11,280
Speaker 8: them back together scheduled to happen tomorrow. Have you been

317
00:16:11,280 --> 00:16:13,840
Speaker 8: given any reason to believe, Congressman, that the Budget Committee

318
00:16:13,840 --> 00:16:17,560
Speaker 8: itself reassembling this could be delayed because of these outstanding

319
00:16:17,640 --> 00:16:20,000
Speaker 8: issues or as tomorrow happening, No matter what.

320
00:16:20,920 --> 00:16:23,800
Speaker 7: I think, tomorrow's going to happen, No matter what you know,

321
00:16:23,880 --> 00:16:28,720
Speaker 7: any changes could be agreed upon with Speaker Johnson's office

322
00:16:28,840 --> 00:16:32,120
Speaker 7: or the Leadership offices, along with the Budget Chair and

323
00:16:32,160 --> 00:16:35,880
Speaker 7: the Budget Committee. We would make instructions, send those to

324
00:16:36,040 --> 00:16:38,040
Speaker 7: the Rules Committee. They would have to make the changes

325
00:16:38,400 --> 00:16:41,360
Speaker 7: before it goes to the floor next Monday. But I

326
00:16:41,360 --> 00:16:43,960
Speaker 7: feel like there's, you know, some consensus coming together here

327
00:16:43,960 --> 00:16:46,520
Speaker 7: at the end. Everybody has made their case, you know,

328
00:16:46,520 --> 00:16:49,640
Speaker 7: whether it's the Salt Caucus or whether it's those of

329
00:16:49,720 --> 00:16:52,480
Speaker 7: us on the Budget Committee making sure we stick to

330
00:16:52,520 --> 00:16:55,760
Speaker 7: our numbers. And also, you know, we're hearing some good

331
00:16:55,800 --> 00:16:57,560
Speaker 7: things from the Senate side that they want to even

332
00:16:57,560 --> 00:17:00,480
Speaker 7: take up a couple of items that may increase savings

333
00:17:00,480 --> 00:17:01,880
Speaker 7: even more. At the end of the day, we want

334
00:17:01,920 --> 00:17:04,760
Speaker 7: to make sure the economy is strong, the tax rates

335
00:17:04,800 --> 00:17:07,520
Speaker 7: are in place. That way there's confidence in the markets.

336
00:17:07,800 --> 00:17:11,320
Speaker 7: And then also that the President has what he needs

337
00:17:11,320 --> 00:17:14,159
Speaker 7: to secure the border and do what he promised the

338
00:17:14,160 --> 00:17:16,880
Speaker 7: American people. And so I feel like we're all unified

339
00:17:16,920 --> 00:17:19,479
Speaker 7: those around those big principles and we're going to get there.

340
00:17:20,840 --> 00:17:23,080
Speaker 2: Hungressman, I want to ask you as we follow President

341
00:17:23,080 --> 00:17:25,960
Speaker 2: Trump's travels across the Middle East. He's an Abu Dhabi

342
00:17:26,080 --> 00:17:28,520
Speaker 2: right now in a bilateral meeting with the president of

343
00:17:28,560 --> 00:17:31,800
Speaker 2: the UAE. We were struck by news earlier this week

344
00:17:31,840 --> 00:17:34,600
Speaker 2: that he in fact sat down with the new leader

345
00:17:34,720 --> 00:17:38,080
Speaker 2: of Syria. And it's important as we spend some time

346
00:17:38,119 --> 00:17:40,800
Speaker 2: with you because you were there just a couple of

347
00:17:40,840 --> 00:17:44,639
Speaker 2: weeks ago. You and Representative Corey Mills of Florida touchdown

348
00:17:44,840 --> 00:17:48,359
Speaker 2: in the Damascus suburb of Joe Bart and spend some

349
00:17:48,440 --> 00:17:50,800
Speaker 2: time touring the region meeting with officials. What did you

350
00:17:50,960 --> 00:17:53,440
Speaker 2: learn and what's going to happen next in Syria now

351
00:17:53,440 --> 00:17:55,800
Speaker 2: that President Trump has sat down with its leader and

352
00:17:55,840 --> 00:17:56,680
Speaker 2: removed sanctions.

353
00:17:57,480 --> 00:17:59,720
Speaker 7: Yeah, I think it's a really good opportunity for the

354
00:17:59,760 --> 00:18:05,040
Speaker 7: Seria in people. To see the destruction that the Syrian

355
00:18:05,080 --> 00:18:08,639
Speaker 7: people had to endure under the Assad regime was just remarkable.

356
00:18:08,760 --> 00:18:11,720
Speaker 7: It's even hard to comprehend without seeing it, you know,

357
00:18:11,840 --> 00:18:14,720
Speaker 7: in person and seeing the magnitude of it, billions and

358
00:18:14,720 --> 00:18:19,120
Speaker 7: billions of dollars of homes destroyed, families torn apart. And

359
00:18:19,320 --> 00:18:21,840
Speaker 7: I went with a group called the Syrian American Alliance

360
00:18:21,920 --> 00:18:26,080
Speaker 7: for Peace and Prosperity, and Corey and I each met

361
00:18:26,119 --> 00:18:29,879
Speaker 7: with the new president separately, which was nice because we

362
00:18:29,920 --> 00:18:32,000
Speaker 7: could compare our notes. You're trying to you know, I'm

363
00:18:32,000 --> 00:18:34,760
Speaker 7: a business guy trying to figure out, you know, how,

364
00:18:34,880 --> 00:18:37,080
Speaker 7: you know, what is he telling us that we you know,

365
00:18:37,119 --> 00:18:39,560
Speaker 7: we really can trust this guy. He's got a checkered

366
00:18:39,560 --> 00:18:43,199
Speaker 7: past of his own, former Al Qaeda, former HTS. But

367
00:18:44,920 --> 00:18:47,520
Speaker 7: the Syrian people have been through so much and they're

368
00:18:47,640 --> 00:18:51,720
Speaker 7: asking for the sanctions to be lifted. And of course

369
00:18:52,080 --> 00:18:54,439
Speaker 7: the president, which I was impressed by the fact he

370
00:18:54,480 --> 00:18:57,520
Speaker 7: wasn't asking for military help, he wasn't asking for money

371
00:18:57,560 --> 00:19:00,320
Speaker 7: from the American people. He was simply asking for the

372
00:19:00,359 --> 00:19:02,960
Speaker 7: sanctions to be lifted. And the fact that he had

373
00:19:03,000 --> 00:19:05,160
Speaker 7: a deal or has a deal offered to him by

374
00:19:05,160 --> 00:19:07,840
Speaker 7: the Russians, but he didn't want to take it until

375
00:19:07,840 --> 00:19:11,000
Speaker 7: he actually talked to President Trump and to America to

376
00:19:11,600 --> 00:19:13,359
Speaker 7: see if you know, which direction they're going to go.

377
00:19:13,400 --> 00:19:15,480
Speaker 7: And we know they're going to go one direction or another,

378
00:19:15,920 --> 00:19:18,680
Speaker 7: but I really felt after meeting with them and being

379
00:19:18,720 --> 00:19:21,800
Speaker 7: in Syria for a couple of days, they really want

380
00:19:21,840 --> 00:19:25,320
Speaker 7: to be a part of the Western economy. And I

381
00:19:25,359 --> 00:19:29,040
Speaker 7: think they see what's happening in Saudi Arabia, Qatar and

382
00:19:29,240 --> 00:19:32,440
Speaker 7: UAE and the amount of prosperity and wealth that's being

383
00:19:32,480 --> 00:19:34,040
Speaker 7: built there that they want to be a part of that.

384
00:19:34,080 --> 00:19:38,399
Speaker 7: He talked about tradelines, tourism in their country, commerce, so

385
00:19:38,480 --> 00:19:40,560
Speaker 7: I really felt, you know, the line that Trump used

386
00:19:40,600 --> 00:19:43,080
Speaker 7: commerce over chaos was really applicable here.

387
00:19:44,600 --> 00:19:47,760
Speaker 8: All right, Congressman, great to have you back on Balance

388
00:19:47,800 --> 00:19:50,840
Speaker 8: of Power. This Republican Congressman Marlin Stutsman of Indiana joining

389
00:19:50,920 --> 00:19:53,320
Speaker 8: us live from Capitol Hill, and we'll have more on

390
00:19:53,320 --> 00:19:55,280
Speaker 8: the president's trip to the Middle East in just a

391
00:19:55,320 --> 00:19:58,119
Speaker 8: moment when our political panel, Rick Davis and Jeanie Schanzano

392
00:19:58,520 --> 00:20:00,679
Speaker 8: join us. That's straight ahead here. It's a power on

393
00:20:00,720 --> 00:20:02,439
Speaker 8: Bloomberg TV and Radio.

394
00:20:05,800 --> 00:20:09,280
Speaker 1: You're listening to the Bloomberg Balance of Power Podcast. Catch

395
00:20:09,320 --> 00:20:12,320
Speaker 1: us live weekdays at noon and five pm Eastern on

396
00:20:12,480 --> 00:20:15,760
Speaker 1: Apple Coarckley and Android Auto with the Bloomberg Business app.

397
00:20:15,880 --> 00:20:19,120
Speaker 1: Listen on demand wherever you get your podcasts, or watch

398
00:20:19,240 --> 00:20:21,720
Speaker 1: us live on YouTube.

399
00:20:21,920 --> 00:20:25,359
Speaker 2: We're digging into politics here in the nation's capital and

400
00:20:25,440 --> 00:20:28,960
Speaker 2: abroad as President Trump continues his journey through the Middle East,

401
00:20:28,960 --> 00:20:32,440
Speaker 2: touching down today in Abu Dhabi. He's inside the Presidential

402
00:20:32,480 --> 00:20:34,879
Speaker 2: Palace right now for a bilateral meeting with the President

403
00:20:34,880 --> 00:20:38,320
Speaker 2: of the UAE and a lavish dinner, not ruling out

404
00:20:38,640 --> 00:20:41,760
Speaker 2: at least as of three o'clock this morning, adding a

405
00:20:41,800 --> 00:20:46,879
Speaker 2: stop tomorrow Turkey, where Ukrainian peace talks are set to

406
00:20:46,880 --> 00:20:49,520
Speaker 2: be held. Here's what the President said before he left Cutter.

407
00:20:50,560 --> 00:20:54,160
Speaker 9: I was thinking about going, but it's very tough because

408
00:20:54,200 --> 00:20:58,320
Speaker 9: of what we're doing today and tomorrow. But you know,

409
00:20:58,320 --> 00:21:01,720
Speaker 9: if something happened, I go on Friday if it was appropriate.

410
00:21:02,680 --> 00:21:05,760
Speaker 9: But we have people right now negotiating, and I think

411
00:21:05,840 --> 00:21:08,960
Speaker 9: that I just hope that Russia and Ukraine are able

412
00:21:09,000 --> 00:21:15,080
Speaker 9: to do something because it has to stop.

413
00:21:16,920 --> 00:21:21,640
Speaker 8: The people right now negotiating. Mind you are not principles necessarily.

414
00:21:21,720 --> 00:21:24,000
Speaker 8: Vladimir Putin, of course, did not make tracks to Turkey

415
00:21:24,000 --> 00:21:27,600
Speaker 8: at all, instead sending some relatively lower level aids, and

416
00:21:27,640 --> 00:21:31,320
Speaker 8: while Vladimir Zelenski did head to Turkey and meet with

417
00:21:31,480 --> 00:21:35,520
Speaker 8: Turkish President Resip type Erdowon. He also, of course, is

418
00:21:35,560 --> 00:21:38,399
Speaker 8: not meeting face to face with these negotiators. So we

419
00:21:38,400 --> 00:21:40,240
Speaker 8: want to get into this now with our political panel.

420
00:21:40,280 --> 00:21:44,119
Speaker 8: Bloomberg Politics contributors Rick Davis and Genie Shanzino are joining us.

421
00:21:44,160 --> 00:21:47,280
Speaker 8: Rick stone Court, capital partner and Republican strategists, Genie democratic

422
00:21:47,320 --> 00:21:49,480
Speaker 8: analyst and senior Democracy fellow at the Center for the

423
00:21:49,520 --> 00:21:53,000
Speaker 8: Study of the Presidency and Congress. Rick, when we talked

424
00:21:53,000 --> 00:21:57,040
Speaker 8: about the prospect of this negotiation, if you will, happening

425
00:21:57,040 --> 00:21:59,200
Speaker 8: in Turkey earlier this week, you made it clear that

426
00:21:59,240 --> 00:22:01,159
Speaker 8: it was pretty obvious to you the principles were not

427
00:22:01,240 --> 00:22:04,000
Speaker 8: ready to all be sitting down together at this point

428
00:22:04,000 --> 00:22:07,840
Speaker 8: because so little tangible progress has actually been made to

429
00:22:08,240 --> 00:22:11,440
Speaker 8: get to that point in President Trump today said, look, obviously,

430
00:22:11,480 --> 00:22:14,520
Speaker 8: nothing's going to happen until I meet with Putin myself.

431
00:22:14,560 --> 00:22:16,280
Speaker 8: Is that really what needs to happen here first?

432
00:22:16,480 --> 00:22:17,359
Speaker 2: You know, it's hard to tell.

433
00:22:18,080 --> 00:22:21,600
Speaker 10: I can't imagine Donald Trump and Vladimir Putin cutting a

434
00:22:21,640 --> 00:22:24,679
Speaker 10: deal that's going to be acceptable to the Ukrainians, and

435
00:22:24,760 --> 00:22:27,520
Speaker 10: I can't imagine a situation where all three of those

436
00:22:27,560 --> 00:22:31,639
Speaker 10: principles get together to hash it out. And so typically

437
00:22:31,640 --> 00:22:33,720
Speaker 10: what you would see in this kind of a scenario is,

438
00:22:34,160 --> 00:22:37,119
Speaker 10: you know, in non principles meeting deputies people like that,

439
00:22:37,320 --> 00:22:40,080
Speaker 10: get together, try to find common ground, build off that

440
00:22:40,119 --> 00:22:43,400
Speaker 10: common ground into a deal, and then call the principles

441
00:22:43,400 --> 00:22:46,200
Speaker 10: in to take credit for the deal, you know, and

442
00:22:46,280 --> 00:22:48,840
Speaker 10: try to cement the deal. Usually there's one or two

443
00:22:48,920 --> 00:22:52,040
Speaker 10: issues that only a principle can make a decision on.

444
00:22:52,240 --> 00:22:55,679
Speaker 10: We're not anywhere near that, based on the reporting that

445
00:22:55,680 --> 00:22:59,760
Speaker 10: we're getting out of Istanbul about the status of these negotiations.

446
00:22:59,880 --> 00:23:02,680
Speaker 10: I do think it's interesting that the President went from

447
00:23:02,720 --> 00:23:04,320
Speaker 10: I'm going to settle this in the first day of

448
00:23:04,359 --> 00:23:06,880
Speaker 10: my presidency too, gee, I hope they can work it out.

449
00:23:07,200 --> 00:23:09,880
Speaker 10: That is a big difference in approach, and it maybe

450
00:23:10,000 --> 00:23:14,240
Speaker 10: indicates a lack of confidence by this administration that something's

451
00:23:14,280 --> 00:23:15,880
Speaker 10: going to get done here on the short term.

452
00:23:15,920 --> 00:23:19,600
Speaker 2: Remarkable, Genie, Are we fooling ourselves to believe that Vladimir

453
00:23:19,680 --> 00:23:24,119
Speaker 2: Putin would give the US a win in mediating a

454
00:23:24,160 --> 00:23:25,399
Speaker 2: piece deal with Ukraine?

455
00:23:26,720 --> 00:23:28,680
Speaker 5: I think so. First of all, I'm hoping for President

456
00:23:28,680 --> 00:23:30,680
Speaker 5: Trump's sake that they have a lot of good air

457
00:23:30,720 --> 00:23:33,199
Speaker 5: conditioning in that palace. It was one hundred degrees in

458
00:23:33,240 --> 00:23:38,040
Speaker 5: the UAE today, So God bless him. Yeah, it's hot.

459
00:23:39,080 --> 00:23:41,680
Speaker 5: You know, the reality is is that they're nowhere close

460
00:23:41,720 --> 00:23:45,000
Speaker 5: to a deal, Donald Trump said, to Rick's point, you know,

461
00:23:45,080 --> 00:23:47,720
Speaker 5: twenty four hours, forty eight hours, then he moved to

462
00:23:47,760 --> 00:23:51,600
Speaker 5: a thirty day cease fire, Zelenski agreed, put installed, then

463
00:23:51,640 --> 00:23:55,160
Speaker 5: he moved to meet in Turkey. Zolenski's there, Putin is not.

464
00:23:55,560 --> 00:23:59,359
Speaker 5: So this is right now, all about Zolensky and Vladimir

465
00:23:59,400 --> 00:24:03,680
Speaker 5: Putin trying to cozy up to Donald Trump and trying

466
00:24:03,800 --> 00:24:08,320
Speaker 5: to make sure, at least for Zelensky, incredibly important that

467
00:24:08,359 --> 00:24:10,760
Speaker 5: he shows Donald Trump that he is being played by

468
00:24:10,840 --> 00:24:14,000
Speaker 5: Vladimir Putin, because he believes strongly that if you look

469
00:24:14,000 --> 00:24:16,920
Speaker 5: at the recent history, that is what's going on. And

470
00:24:17,320 --> 00:24:19,879
Speaker 5: he is hoping that Donald Trump gets so frustrated with

471
00:24:19,960 --> 00:24:23,320
Speaker 5: Vladimir Putin he pulls the lever on those sanctions they've

472
00:24:23,320 --> 00:24:27,720
Speaker 5: been talking about, or if not, that he continues arming Ukraine,

473
00:24:27,760 --> 00:24:32,720
Speaker 5: which we've been doing, sharing important strategic information and other

474
00:24:32,760 --> 00:24:34,440
Speaker 5: ways of supporting Ukraine in the war.

475
00:24:36,480 --> 00:24:39,560
Speaker 8: Well, and to your point, Genie, Ukrainian President Zelensky did

476
00:24:39,600 --> 00:24:42,919
Speaker 8: post on X today that Russia once again demonstrate that

477
00:24:42,960 --> 00:24:45,040
Speaker 8: it does not intend to end the war, having sent

478
00:24:45,040 --> 00:24:47,760
Speaker 8: a delegation of rather low level representatives. Moreover, such a

479
00:24:47,840 --> 00:24:51,160
Speaker 8: Russian approach, he says, is a sign of disrespect toward

480
00:24:51,240 --> 00:24:53,800
Speaker 8: the world and all partners. And I wonder if he's

481
00:24:53,800 --> 00:24:57,040
Speaker 8: intending for one partner in particular, the US and President

482
00:24:57,040 --> 00:25:01,760
Speaker 8: Trump to feel disrespected here, Genie, we have heard and

483
00:25:01,840 --> 00:25:03,399
Speaker 8: Rick was making this point earlier, a bit of a

484
00:25:03,400 --> 00:25:06,560
Speaker 8: shifting in language of President Trump, not just on the

485
00:25:06,600 --> 00:25:09,960
Speaker 8: realistic timeline for him being able to broker a deal here,

486
00:25:09,960 --> 00:25:13,040
Speaker 8: but also the way in which he talks about Vladimir

487
00:25:13,080 --> 00:25:15,720
Speaker 8: Putin and Russia. Are you starting to see signs of

488
00:25:16,000 --> 00:25:18,360
Speaker 8: the President feeling a bit disrespected?

489
00:25:19,880 --> 00:25:23,200
Speaker 5: Absolutely? And we know just looking at this amazing trip

490
00:25:23,240 --> 00:25:25,200
Speaker 5: he's gone and in the Middle East. If you want

491
00:25:25,200 --> 00:25:28,119
Speaker 5: to get in good with President Trump, you need to

492
00:25:28,520 --> 00:25:31,720
Speaker 5: show a lot of respect, a lot of pomp and circumstance.

493
00:25:31,840 --> 00:25:35,840
Speaker 5: A good trillion dollar deal doesn't hurt. And we don't,

494
00:25:35,960 --> 00:25:38,880
Speaker 5: you know, we are getting signs that the administration and

495
00:25:38,960 --> 00:25:42,600
Speaker 5: Donald Trump are feeling frustrated with Vladimir Putin. And again

496
00:25:42,920 --> 00:25:46,280
Speaker 5: he has talked openly, the administration openly just in the

497
00:25:46,320 --> 00:25:50,440
Speaker 5: last few days about sanctions on Russia. I thought the

498
00:25:50,680 --> 00:25:52,960
Speaker 5: language he used today of saying, go only be a

499
00:25:53,000 --> 00:25:57,000
Speaker 5: deal if I meet with Vladimir Putin was important as well.

500
00:25:57,119 --> 00:26:01,160
Speaker 5: So he is, you know, hoping, at least from Vilelensky side,

501
00:26:01,160 --> 00:26:04,200
Speaker 5: that there is some frustration there and that at least

502
00:26:04,240 --> 00:26:08,800
Speaker 5: for Europe and Ukraine, that he does indeed start to

503
00:26:08,880 --> 00:26:12,000
Speaker 5: push Russia more than he has in the past.

504
00:26:13,160 --> 00:26:15,879
Speaker 2: Interesting talk of peace deals. There's been a lot of

505
00:26:15,920 --> 00:26:20,159
Speaker 2: talk of deals on this trip, most of them involving money,

506
00:26:20,840 --> 00:26:24,240
Speaker 2: Rick Davis remarkable one point for trillion dollars in investments

507
00:26:24,280 --> 00:26:28,040
Speaker 2: the president announcing today in the UAE. He's actually with

508
00:26:28,320 --> 00:26:30,840
Speaker 2: Jensen Wong right now. If you're with us on Bloomberg

509
00:26:30,880 --> 00:26:33,879
Speaker 2: TV or on YouTube, look at this the President of

510
00:26:33,880 --> 00:26:37,280
Speaker 2: the United States and the CEO of Nvidia. Much of

511
00:26:37,359 --> 00:26:40,320
Speaker 2: this deal making has to do with high tech chips.

512
00:26:40,440 --> 00:26:43,680
Speaker 2: Nvidia and AMD specifically have been called out here. We've

513
00:26:43,680 --> 00:26:47,280
Speaker 2: seen companies including Amazon, Cisco, Qualcom also announcing new deals

514
00:26:47,560 --> 00:26:51,399
Speaker 2: and partnerships on this trip. Rick, I'm guessing this will

515
00:26:51,440 --> 00:26:55,160
Speaker 2: in fact be the lasting news from this journey. He's

516
00:26:55,200 --> 00:26:58,160
Speaker 2: got his Commerce secretary, Howard Lutnick with him, as well,

517
00:26:58,720 --> 00:27:01,159
Speaker 2: and a fascinating way to do business here with a

518
00:27:01,200 --> 00:27:03,800
Speaker 2: sharp contrast to what we saw from the previous administration.

519
00:27:04,200 --> 00:27:08,720
Speaker 10: Yeah, certainly this sort of mercantile focused administration is going

520
00:27:08,800 --> 00:27:11,399
Speaker 10: to play up the fact that wherever Donald Trump goes,

521
00:27:11,800 --> 00:27:15,520
Speaker 10: investment into the US follows and and look, I mean,

522
00:27:15,520 --> 00:27:18,440
Speaker 10: I think it's a it's a great positive that these

523
00:27:18,480 --> 00:27:21,359
Speaker 10: countries are willing to invest in the greatest economy in

524
00:27:21,359 --> 00:27:24,760
Speaker 10: the world. So I think I think these are positives.

525
00:27:24,760 --> 00:27:27,960
Speaker 10: I would say, I'm still struck by the president's comments

526
00:27:28,000 --> 00:27:31,399
Speaker 10: in Saudi Arabia, where he really painted a geopolitical picture

527
00:27:32,000 --> 00:27:35,080
Speaker 10: of being also a deal maker on peace in places

528
00:27:35,119 --> 00:27:39,800
Speaker 10: like Syria, places like Iran, and and I've I felt

529
00:27:39,840 --> 00:27:44,480
Speaker 10: like that's a massive commitment by this administration on solving

530
00:27:44,760 --> 00:27:50,080
Speaker 10: age old problems that have existed for generations in that region.

531
00:27:50,160 --> 00:27:53,280
Speaker 10: And so if he can find solutions to some of

532
00:27:53,320 --> 00:27:59,200
Speaker 10: these vexing problems like relations between Israel and Syria being normalized,

533
00:27:59,320 --> 00:28:01,400
Speaker 10: and the idea that we could get a nuclear deal

534
00:28:01,400 --> 00:28:05,480
Speaker 10: out of Iran, that will overshadow over time the deal

535
00:28:05,560 --> 00:28:06,879
Speaker 10: making that he's doing today.

536
00:28:07,440 --> 00:28:09,680
Speaker 8: Well, the President is actually speaking now after his quick

537
00:28:09,760 --> 00:28:12,480
Speaker 8: chat with Jensen Wong talking about AI development and the

538
00:28:12,480 --> 00:28:16,560
Speaker 8: purchases that these Middle Eastern countries are buying things from

539
00:28:16,680 --> 00:28:19,320
Speaker 8: US companies. He says it's a massive project will be

540
00:28:19,359 --> 00:28:22,719
Speaker 8: bought from through the US, talking about how this has

541
00:28:22,800 --> 00:28:27,600
Speaker 8: been a great visit and that he's leaving tomorrow destination unknown,

542
00:28:27,760 --> 00:28:30,520
Speaker 8: So maybe he is still leaving the door open to

543
00:28:30,640 --> 00:28:33,480
Speaker 8: a trip to Turkey. He says he's probably going back

544
00:28:33,520 --> 00:28:37,679
Speaker 8: to d c not definitively, I guess going back to

545
00:28:37,800 --> 00:28:39,800
Speaker 8: d C rick when it comes to the AI and

546
00:28:39,840 --> 00:28:42,120
Speaker 8: the kind of chip equipment that we're talking about here

547
00:28:42,160 --> 00:28:44,200
Speaker 8: that these countries are I guess going to be given

548
00:28:44,240 --> 00:28:47,000
Speaker 8: access to now by the United States. Bloomberg is reporting

549
00:28:47,040 --> 00:28:49,880
Speaker 8: today about how there are some China hawks, national security

550
00:28:49,920 --> 00:28:52,800
Speaker 8: hawks in particular, who actually are quite hesitant about this notion,

551
00:28:52,880 --> 00:28:55,400
Speaker 8: the idea that there may not be firm enough guardrails

552
00:28:55,400 --> 00:28:57,960
Speaker 8: in place to ensure that the end market actually ultimately

553
00:28:58,600 --> 00:29:01,080
Speaker 8: isn't China. Are those voice is able to win out

554
00:29:01,080 --> 00:29:02,600
Speaker 8: at all when he wants to be able to telp

555
00:29:02,600 --> 00:29:03,560
Speaker 8: these deals so badly.

556
00:29:03,800 --> 00:29:07,840
Speaker 10: It's a very very difficult issue, especially within the Republican Party,

557
00:29:07,880 --> 00:29:10,400
Speaker 10: because you know, we have a group that say no

558
00:29:10,640 --> 00:29:13,640
Speaker 10: China technology going into the Middle East. We fought them

559
00:29:13,680 --> 00:29:17,320
Speaker 10: on allowing Huawei in there, you know, to get control

560
00:29:17,400 --> 00:29:21,560
Speaker 10: of five G. We've fought them on ports that they

561
00:29:21,600 --> 00:29:25,040
Speaker 10: wanted to have China come in to develop, and we

562
00:29:25,080 --> 00:29:27,480
Speaker 10: won those fights. But now it's up to us to

563
00:29:27,560 --> 00:29:29,960
Speaker 10: determine whether we're going to give them the highest technology,

564
00:29:29,960 --> 00:29:33,960
Speaker 10: not just technology, but the highest technology available to fuel

565
00:29:34,040 --> 00:29:36,480
Speaker 10: what is a revolution going on in the region with

566
00:29:36,560 --> 00:29:39,280
Speaker 10: building data centers, being able to power those and being

567
00:29:39,320 --> 00:29:42,440
Speaker 10: able to become more of a digital power themselves. And

568
00:29:42,520 --> 00:29:46,000
Speaker 10: the question is this cozy relationship that they've had with China,

569
00:29:46,120 --> 00:29:49,680
Speaker 10: is that can result in leakage of that technology into China.

570
00:29:50,480 --> 00:29:53,800
Speaker 10: And then on the other hand, is if we don't

571
00:29:53,800 --> 00:29:55,960
Speaker 10: give it to them, will China then have an open

572
00:29:55,960 --> 00:29:58,880
Speaker 10: door to get back into the region. This administration is

573
00:29:58,920 --> 00:30:01,280
Speaker 10: not going to shut the door on Middle East. If anything,

574
00:30:01,320 --> 00:30:05,200
Speaker 10: the last week has taught us that these are relationships

575
00:30:05,200 --> 00:30:09,160
Speaker 10: that they expect to span decades, and so that opens

576
00:30:09,160 --> 00:30:11,480
Speaker 10: the door. But there are a lot of Republicans, as

577
00:30:11,480 --> 00:30:13,920
Speaker 10: you say, hawks on China who are not happy with

578
00:30:13,960 --> 00:30:16,360
Speaker 10: the leakage of this technology in the areas where they have,

579
00:30:16,480 --> 00:30:18,480
Speaker 10: you know, strong relationships with Beijing.

580
00:30:18,520 --> 00:30:22,160
Speaker 2: We GENI. Is this the new model here for presidential travel?

581
00:30:22,640 --> 00:30:25,200
Speaker 2: You show up with half of Wall Street and Silicon Valley.

582
00:30:25,200 --> 00:30:28,320
Speaker 2: You've got Donald Trump, Euro Jensen Wong and Abu Dhabi.

583
00:30:28,680 --> 00:30:31,520
Speaker 2: We saw Elon Musk, Larry Fink, Sam Maltman. I could

584
00:30:31,560 --> 00:30:34,440
Speaker 2: keep going when he was in Saudi Arabia? Is this

585
00:30:34,480 --> 00:30:35,400
Speaker 2: the new entourage?

586
00:30:37,400 --> 00:30:40,520
Speaker 5: Seems to be. I'm not sure future presidents are going

587
00:30:40,600 --> 00:30:42,440
Speaker 5: to be able to do it in the way Donald

588
00:30:42,480 --> 00:30:45,320
Speaker 5: Trump seems to be able to do it. He pulls

589
00:30:45,360 --> 00:30:49,160
Speaker 5: this off. But I do think it is fascinating because

590
00:30:49,400 --> 00:30:51,840
Speaker 5: if you look at some of the pushback, you know

591
00:30:51,920 --> 00:30:55,440
Speaker 5: there is support obviously for investments in the United States

592
00:30:55,920 --> 00:30:58,560
Speaker 5: and what the president has been able to achieve in

593
00:30:58,600 --> 00:31:04,240
Speaker 5: that regard. The pushback is coming from some conservatives who

594
00:31:04,240 --> 00:31:08,160
Speaker 5: are likening the president's entry into the Middle East to

595
00:31:08,200 --> 00:31:11,840
Speaker 5: what Barack Obama did in his first and second term

596
00:31:12,120 --> 00:31:16,200
Speaker 5: when he went over there to widespread criticism and was

597
00:31:16,240 --> 00:31:20,959
Speaker 5: willing to entertain these kinds of approaches to the Middle East. Now,

598
00:31:21,000 --> 00:31:23,680
Speaker 5: the world has changed an awful lot since then, but

599
00:31:23,800 --> 00:31:27,160
Speaker 5: you are hearing comparisons in that regard, and of course

600
00:31:27,240 --> 00:31:30,120
Speaker 5: we can't leave out of this discussion. What do they

601
00:31:30,280 --> 00:31:34,200
Speaker 5: do about Iran and the nuclear aspect of that, That

602
00:31:34,360 --> 00:31:38,040
Speaker 5: is a huge question. I've been astounded by the fact

603
00:31:38,080 --> 00:31:41,200
Speaker 5: that President has talked about it openly over there and

604
00:31:41,320 --> 00:31:43,840
Speaker 5: seems to be saying there is a deal in the offing,

605
00:31:44,240 --> 00:31:46,600
Speaker 5: but we don't know what that might look like. And

606
00:31:46,640 --> 00:31:48,520
Speaker 5: Anne Marie was just talking to you about that. I

607
00:31:48,560 --> 00:31:51,840
Speaker 5: think that's one of the most important geopolitical issues that

608
00:31:51,880 --> 00:31:53,280
Speaker 5: he needs to address right now.

609
00:31:54,280 --> 00:31:57,720
Speaker 2: Great conversation with our panel Jeanie Shanzano and Rick Davis,

610
00:31:57,760 --> 00:32:01,280
Speaker 2: Bloomberg Politics contributors. We thank you both. With breaking news,

611
00:32:01,360 --> 00:32:03,840
Speaker 2: Kayley on the terminal that brings us to coinbase. The

612
00:32:03,880 --> 00:32:07,400
Speaker 2: New York Times, supporting the SEC is probing whether coinbase

613
00:32:07,560 --> 00:32:11,320
Speaker 2: misstated its user numbers. The stock right now is down

614
00:32:11,440 --> 00:32:12,400
Speaker 2: over seven percent.

615
00:32:14,640 --> 00:32:18,120
Speaker 1: You're listening to the Bloomberg Balance of Power podcasts. Catch

616
00:32:18,200 --> 00:32:21,040
Speaker 1: us live weekdays at noon and five pm. E's durn

617
00:32:21,160 --> 00:32:24,600
Speaker 1: on Apple, Cocklay and Android Auto with the Bloomberg Business app.

618
00:32:24,640 --> 00:32:27,680
Speaker 1: You can also listen live on Amazon Alexa from our

619
00:32:27,720 --> 00:32:32,880
Speaker 1: flagship New York station, Just say Alexa play Bloomberg eleven thirty.

620
00:32:33,840 --> 00:32:36,120
Speaker 8: As we come to you live from Washington. I'm Kaylee

621
00:32:36,160 --> 00:32:38,680
Speaker 8: lines alongside Joe Matthew. This is balance of power where

622
00:32:38,680 --> 00:32:40,240
Speaker 8: we've been spending a lot of time for the last

623
00:32:40,240 --> 00:32:44,400
Speaker 8: several weeks talking about an issue that yes is omnipresident

624
00:32:44,440 --> 00:32:47,880
Speaker 8: seems here in Washington, but does have ramifications for markets

625
00:32:47,960 --> 00:32:50,680
Speaker 8: like New York Er other places in which people play

626
00:32:51,720 --> 00:32:54,720
Speaker 8: high taxes in some blue states. That, of course, is

627
00:32:54,720 --> 00:32:58,400
Speaker 8: the issue of the salt cap. Just where exactly will

628
00:32:58,440 --> 00:33:01,200
Speaker 8: the state and local tax deduction ultimately end up As

629
00:33:01,240 --> 00:33:03,560
Speaker 8: Republicans try to find a compromise here so that they

630
00:33:03,560 --> 00:33:07,080
Speaker 8: can get through their budget reconciliation package ahead of the deadline.

631
00:33:07,080 --> 00:33:10,480
Speaker 8: The Speaker himself has set Memorial Day, it only leaves

632
00:33:10,520 --> 00:33:14,040
Speaker 8: them a handful of legislative days, although apparently they're going

633
00:33:14,040 --> 00:33:17,040
Speaker 8: beyond just the scheduled legislative days. They intend to work

634
00:33:17,240 --> 00:33:19,200
Speaker 8: on a deal on salt through the weekend. As Speaker

635
00:33:19,280 --> 00:33:22,120
Speaker 8: Johnson himself told us earlier today, I.

636
00:33:22,040 --> 00:33:24,720
Speaker 11: Think everyone will say it was productive and that we

637
00:33:24,760 --> 00:33:26,040
Speaker 11: were moving the ball forward.

638
00:33:26,440 --> 00:33:29,640
Speaker 7: Everyone has known that the salt issue is.

639
00:33:29,600 --> 00:33:31,600
Speaker 8: One of the big ones that we have to resolve.

640
00:33:31,600 --> 00:33:34,600
Speaker 6: It's one of the key pieces of this equation to

641
00:33:34,800 --> 00:33:37,200
Speaker 6: sort of meet the equal delivery point that everybody can

642
00:33:37,240 --> 00:33:39,880
Speaker 6: be satisfied with Not everybody's going to be the lie

643
00:33:39,920 --> 00:33:40,880
Speaker 6: to every provision and.

644
00:33:40,880 --> 00:33:43,320
Speaker 8: To build this lord, but everyone can be satisfied.

645
00:33:44,920 --> 00:33:47,920
Speaker 2: That's where we start our conversation with Congressman Ryan McKenzie,

646
00:33:47,960 --> 00:33:51,360
Speaker 2: the Republican from Pennsylvania seventh District, is with us back

647
00:33:51,400 --> 00:33:54,280
Speaker 2: on Bloomberg TV and Radio live from Capitol Hill. Congressman,

648
00:33:54,640 --> 00:33:57,760
Speaker 2: it's great to see you. We're using all of our

649
00:33:57,800 --> 00:34:00,680
Speaker 2: conversations like this just to get an update on what's happening,

650
00:34:00,680 --> 00:34:03,160
Speaker 2: and I'd love to know what you're hearing specific to

651
00:34:03,200 --> 00:34:05,920
Speaker 2: the argument over salt, which seems to have ground things

652
00:34:05,920 --> 00:34:07,960
Speaker 2: to a halt here before all the pieces are put

653
00:34:08,000 --> 00:34:11,680
Speaker 2: together tomorrow in the Budget committee. You're from Allentown. I

654
00:34:11,719 --> 00:34:14,520
Speaker 2: believe what are the people of Allentown or throughout the

655
00:34:14,600 --> 00:34:20,880
Speaker 2: seventh District of Pennsylvania think of subsidizing high taxes in

656
00:34:20,960 --> 00:34:21,680
Speaker 2: blue states?

657
00:34:22,960 --> 00:34:27,080
Speaker 12: Well so, for individuals who do face high property taxes

658
00:34:27,120 --> 00:34:29,760
Speaker 12: in our local community, this is an issue that actually

659
00:34:29,840 --> 00:34:32,400
Speaker 12: could be helpful to them to bring down their overall

660
00:34:32,480 --> 00:34:34,799
Speaker 12: tax burden. At the same time, we want to find

661
00:34:34,800 --> 00:34:38,160
Speaker 12: a compromise and land on a spot where it is

662
00:34:38,200 --> 00:34:40,960
Speaker 12: not being abused by high income earners who don't need

663
00:34:40,960 --> 00:34:43,200
Speaker 12: that assistance. And so what you've been seeing in the

664
00:34:43,239 --> 00:34:46,200
Speaker 12: SALT negotiations is a raising of the cap from ten

665
00:34:46,280 --> 00:34:50,000
Speaker 12: thousand up beyond thirty thousand. That was the latest proposal,

666
00:34:50,000 --> 00:34:52,640
Speaker 12: but it's still not meeting the needs and demands of

667
00:34:52,680 --> 00:34:55,719
Speaker 12: folks from New York, New Jersey, California, and other places.

668
00:34:55,960 --> 00:34:58,000
Speaker 12: And so I think we're going to land somewhere slightly

669
00:34:58,080 --> 00:35:00,680
Speaker 12: north of that, but there will be in come caps

670
00:35:00,719 --> 00:35:03,439
Speaker 12: on that as well, again so that individuals who don't

671
00:35:03,480 --> 00:35:06,200
Speaker 12: really need that assistance aren't in that position to receive

672
00:35:06,239 --> 00:35:09,120
Speaker 12: those benefits. But you do have to recognize that state

673
00:35:09,160 --> 00:35:11,600
Speaker 12: and local taxes come in a variety of forms. Sometimes

674
00:35:11,600 --> 00:35:14,680
Speaker 12: it's income taxes, but sometimes it's property taxes. And so

675
00:35:15,000 --> 00:35:17,840
Speaker 12: in that instance, with property taxes, it might be somebody

676
00:35:17,920 --> 00:35:20,640
Speaker 12: who is a senior retiring in their home. Their value

677
00:35:20,680 --> 00:35:23,359
Speaker 12: of the home has gone up significantly over the years,

678
00:35:23,440 --> 00:35:26,120
Speaker 12: so they're faced with that tax burden, but they're actually

679
00:35:26,160 --> 00:35:28,520
Speaker 12: not in a position to pay that on an annual

680
00:35:28,560 --> 00:35:30,680
Speaker 12: basis to stay in their home because they don't have

681
00:35:30,719 --> 00:35:32,920
Speaker 12: the income to sustain it. So trying to strike that

682
00:35:32,960 --> 00:35:34,200
Speaker 12: appropriate balance.

683
00:35:35,520 --> 00:35:38,080
Speaker 8: Well, and of course all of This ultimately does come

684
00:35:38,160 --> 00:35:40,600
Speaker 8: down to balance what kind of revenue can be lost

685
00:35:40,600 --> 00:35:42,920
Speaker 8: and what kind of spending cuts may be able to

686
00:35:43,160 --> 00:35:45,800
Speaker 8: offset that, or where else could you find revenue raisers

687
00:35:45,840 --> 00:35:49,000
Speaker 8: where you're having revenue reductions in Congress, when I ask

688
00:35:49,040 --> 00:35:50,760
Speaker 8: you this, knowing you have a seat on the Education

689
00:35:50,840 --> 00:35:53,319
Speaker 8: and Workforce Committee in the House, one of the ways

690
00:35:53,320 --> 00:35:55,319
Speaker 8: in which we are seeing a raising of revenue is

691
00:35:55,400 --> 00:35:58,279
Speaker 8: a dramatic increase in the endowment tax from the current

692
00:35:58,320 --> 00:36:01,680
Speaker 8: one point four percent to as high as twenty one percent.

693
00:36:02,200 --> 00:36:03,840
Speaker 8: What is that going to do to some of our

694
00:36:03,920 --> 00:36:07,319
Speaker 8: higher educational institutions that of course not only serve as

695
00:36:07,440 --> 00:36:12,160
Speaker 8: educational institutions, but research institutions as well.

696
00:36:12,280 --> 00:36:14,040
Speaker 12: So that was a change that came out of the

697
00:36:14,040 --> 00:36:16,319
Speaker 12: Ways and Means Committee, that was a part of their

698
00:36:16,360 --> 00:36:20,640
Speaker 12: overall tax package. But in speaking with universities, obviously some

699
00:36:20,680 --> 00:36:22,920
Speaker 12: of them that would be faced with that twenty one

700
00:36:22,960 --> 00:36:26,120
Speaker 12: percent burden are very concerned about that. At the same time,

701
00:36:26,160 --> 00:36:29,480
Speaker 12: we do want to see these institutions deploying their capital,

702
00:36:29,800 --> 00:36:32,680
Speaker 12: not just sitting on these reserves and their endowment. We

703
00:36:32,719 --> 00:36:35,240
Speaker 12: want to make sure that college is affordable for everybody

704
00:36:35,239 --> 00:36:38,279
Speaker 12: across the country and that that research. If they want

705
00:36:38,320 --> 00:36:41,080
Speaker 12: to do that and it can't be helped or sustained

706
00:36:41,080 --> 00:36:43,320
Speaker 12: by the federal government, we want to see them deploying

707
00:36:43,360 --> 00:36:45,719
Speaker 12: that capital. And so too much is being put on

708
00:36:45,760 --> 00:36:49,240
Speaker 12: the sidelines for some of these universities just to simply

709
00:36:49,360 --> 00:36:52,160
Speaker 12: build up their endowments for the sake of building up

710
00:36:52,160 --> 00:36:54,560
Speaker 12: the endowments. And that's not what it should be about.

711
00:36:54,640 --> 00:36:58,840
Speaker 12: Higher education should be about the greater good, employing people

712
00:36:58,880 --> 00:37:01,840
Speaker 12: that can actually do this scientific research, making sure that

713
00:37:02,080 --> 00:37:06,400
Speaker 12: American students are getting a quality education at an affordable cost.

714
00:37:06,640 --> 00:37:10,600
Speaker 12: And the federal government does a lot to subsidize these institutions,

715
00:37:11,280 --> 00:37:15,439
Speaker 12: not only through student loan repayment programs, but also through

716
00:37:15,520 --> 00:37:18,680
Speaker 12: academic research and scientific research. Those are good things, but

717
00:37:18,719 --> 00:37:21,319
Speaker 12: again you have to have a balance that's struck in

718
00:37:21,320 --> 00:37:24,319
Speaker 12: in some instances these universities are sitting on too much

719
00:37:24,360 --> 00:37:27,360
Speaker 12: of an endowment, not deploying that capital to do the

720
00:37:27,400 --> 00:37:30,399
Speaker 12: things that we would expect higher education to actually be doing.

721
00:37:31,480 --> 00:37:34,680
Speaker 2: All of this said, congressmen, will House Republicans help the

722
00:37:34,719 --> 00:37:39,760
Speaker 2: speaker meet his timeline? Budget Committee tomorrow, Rules Committee, Monday

723
00:37:40,160 --> 00:37:42,239
Speaker 2: floor vote before you leave for Memorial Day.

724
00:37:43,719 --> 00:37:45,759
Speaker 7: That's a great question. I don't have an answer to it.

725
00:37:45,800 --> 00:37:48,680
Speaker 12: We actually have a conference wide meeting at two thirty

726
00:37:48,719 --> 00:37:53,279
Speaker 12: today to go over reconciliation. There are still four or

727
00:37:53,320 --> 00:37:56,480
Speaker 12: five main components of this legislation that need to be

728
00:37:56,560 --> 00:38:00,800
Speaker 12: ironed out. We talked about salt Medicaid snap, the Federal

729
00:38:00,840 --> 00:38:04,680
Speaker 12: employee's retirement program, and then a number of other smaller

730
00:38:04,760 --> 00:38:07,800
Speaker 12: changes are all still on the dock. At those programs

731
00:38:07,800 --> 00:38:10,759
Speaker 12: and what came out of Committee are needing to have

732
00:38:10,800 --> 00:38:14,359
Speaker 12: some additional work, I think, and we've been advocating for

733
00:38:14,480 --> 00:38:18,520
Speaker 12: some changes as members. Leadership has been receptive, but now

734
00:38:18,520 --> 00:38:20,560
Speaker 12: we're going to need to see a manager's amendment in

735
00:38:20,719 --> 00:38:23,480
Speaker 12: very short order to start making some of these changes

736
00:38:23,520 --> 00:38:25,120
Speaker 12: so that we can get to a place where we

737
00:38:25,200 --> 00:38:27,600
Speaker 12: have broader agreement and ultimately get to two hundred and

738
00:38:27,600 --> 00:38:29,200
Speaker 12: eighteen votes to get a pass through the House.

739
00:38:30,760 --> 00:38:34,400
Speaker 8: Well, but timing could be crucial here, Congressman, not just

740
00:38:34,480 --> 00:38:38,440
Speaker 8: considering this kind of Memorial Day deadline the Speaker has

741
00:38:38,480 --> 00:38:41,200
Speaker 8: set that isn't necessarily hard, but given the deadline that

742
00:38:41,239 --> 00:38:43,799
Speaker 8: the Treasury Secretary has warned about about an X state

743
00:38:43,840 --> 00:38:45,800
Speaker 8: that could come in August when you and your colleagues

744
00:38:46,120 --> 00:38:48,520
Speaker 8: are on your annual recess. He says for that reason,

745
00:38:48,719 --> 00:38:51,799
Speaker 8: the debt ceiling should be lifted by mid July. Do

746
00:38:51,840 --> 00:38:54,520
Speaker 8: you see risk here or need for a backup plan

747
00:38:54,600 --> 00:38:57,520
Speaker 8: to separate a debt ceiling hike out of this reconciliation

748
00:38:58,360 --> 00:39:01,040
Speaker 8: process in order to avert potentially what could be a

749
00:39:01,040 --> 00:39:02,160
Speaker 8: catastrophic scenario.

750
00:39:03,320 --> 00:39:03,840
Speaker 7: I don't.

751
00:39:04,000 --> 00:39:06,839
Speaker 12: The debt ceiling should be included in this package, and

752
00:39:07,360 --> 00:39:10,640
Speaker 12: that timeline that we were given by Treasury does match

753
00:39:10,719 --> 00:39:14,120
Speaker 12: I think even some of the less optimistic timelines for

754
00:39:14,280 --> 00:39:16,799
Speaker 12: reconciliation to get done. So I think we're still on

755
00:39:16,880 --> 00:39:18,560
Speaker 12: track to meet that. I don't think there should be

756
00:39:18,600 --> 00:39:21,719
Speaker 12: any uncertainty about that. But at the same time, the

757
00:39:22,400 --> 00:39:25,080
Speaker 12: very aggressive timeline that the Speaker set, I think that

758
00:39:25,200 --> 00:39:27,320
Speaker 12: was a good thing to do. We should be pushing

759
00:39:27,360 --> 00:39:30,760
Speaker 12: Congress to act. But at the same time, we always,

760
00:39:30,800 --> 00:39:33,879
Speaker 12: I think understand that that did give us some wiggle room,

761
00:39:33,920 --> 00:39:36,920
Speaker 12: some breathing room that in case things slip in negotiations

762
00:39:36,920 --> 00:39:40,040
Speaker 12: past that hard deadline up front, we still have time

763
00:39:40,080 --> 00:39:43,279
Speaker 12: to meet the ex deadline in July or August, and

764
00:39:43,360 --> 00:39:45,759
Speaker 12: so we're on track to do that. I'm optimistic that

765
00:39:45,800 --> 00:39:48,880
Speaker 12: we're ultimately going to get something done when We'll keep

766
00:39:48,880 --> 00:39:52,160
Speaker 12: pushing for the Memorial Day deadline and hopefully we'll get

767
00:39:52,200 --> 00:39:54,520
Speaker 12: there if those four or five big main issues that

768
00:39:54,560 --> 00:39:57,040
Speaker 12: I talked about get ironed out. If not, well, we

769
00:39:57,080 --> 00:39:59,480
Speaker 12: do have some extra time in the coming session weeks

770
00:39:59,480 --> 00:40:00,000
Speaker 12: to get it done.

771
00:40:01,120 --> 00:40:04,280
Speaker 2: Only got a minute left. Congressman, I know you're obsessing

772
00:40:04,320 --> 00:40:06,759
Speaker 2: over the House version, because that's your job. At some

773
00:40:06,840 --> 00:40:08,800
Speaker 2: point there'll be a vote, it goes to the Senate.

774
00:40:08,840 --> 00:40:10,479
Speaker 2: Are you worried about what comes back?

775
00:40:11,520 --> 00:40:14,040
Speaker 12: Well, actually, I think that should be a key part

776
00:40:14,040 --> 00:40:17,200
Speaker 12: of our consideration here in the House. We've already heard

777
00:40:17,239 --> 00:40:20,319
Speaker 12: some of the comments from the Senate and from the

778
00:40:20,320 --> 00:40:23,040
Speaker 12: White House, and it is important to have alignment between

779
00:40:23,080 --> 00:40:25,000
Speaker 12: all three of us, between the House, the Senate, and

780
00:40:25,040 --> 00:40:27,600
Speaker 12: the White House to ultimately get something done and signed

781
00:40:27,600 --> 00:40:29,920
Speaker 12: into a law to help the American people. So I

782
00:40:29,960 --> 00:40:33,160
Speaker 12: think we should be taking that into consideration now. At

783
00:40:33,160 --> 00:40:35,160
Speaker 12: the end of the day, it is a negotiation between

784
00:40:35,200 --> 00:40:38,239
Speaker 12: those three parties. They don't get the ultimate say, so

785
00:40:38,280 --> 00:40:40,960
Speaker 12: we do want to listen to what they're saying as

786
00:40:41,040 --> 00:40:43,919
Speaker 12: what their redlines may be or what additions they would

787
00:40:43,960 --> 00:40:46,479
Speaker 12: like to see. We should take that into consideration while

788
00:40:46,480 --> 00:40:49,399
Speaker 12: we're doing our work here in the House and again,

789
00:40:49,480 --> 00:40:52,200
Speaker 12: ultimately we'll come up with a product that will actually

790
00:40:52,200 --> 00:40:53,600
Speaker 12: get through this entire process.

791
00:40:54,880 --> 00:40:57,400
Speaker 8: All right, Congressman, thanks for being here on balance of power.

792
00:40:57,400 --> 00:41:01,239
Speaker 8: Republican Congressman Ryan McKenzie of Pennsylvy seventh District here with

793
00:41:01,320 --> 00:41:03,640
Speaker 8: us on Bloomberg TV and Radio. Thank you so much.

794
00:41:03,680 --> 00:41:06,280
Speaker 8: Of course, discussing with us one aspect of President Trump's

795
00:41:06,280 --> 00:41:09,440
Speaker 8: economic policy, that would be tax cuts, but there are

796
00:41:09,480 --> 00:41:12,080
Speaker 8: others to consider as well, including his tariff regime that

797
00:41:12,120 --> 00:41:14,400
Speaker 8: has been very on and off, hot and cold, but

798
00:41:14,480 --> 00:41:17,799
Speaker 8: ultimately has led to increased concerns around the risk of

799
00:41:17,840 --> 00:41:20,400
Speaker 8: a recession in the United States. This is actually something

800
00:41:20,440 --> 00:41:23,399
Speaker 8: that Jamie Diamond, the CEO and chair of JP Morgan Chase,

801
00:41:23,440 --> 00:41:25,719
Speaker 8: spoke about from Paris today with our colleague Francin and

802
00:41:25,760 --> 00:41:26,640
Speaker 8: Loqua earlier.

803
00:41:27,280 --> 00:41:29,520
Speaker 13: I'm going to defer to economists who've given about a

804
00:41:29,560 --> 00:41:32,720
Speaker 13: fifty percent chance. I think all these things are probably

805
00:41:32,800 --> 00:41:36,560
Speaker 13: inflationary a little bit more and slowing down the economy.

806
00:41:36,880 --> 00:41:38,799
Speaker 13: If there's a recession, I don't know how big it'll

807
00:41:38,840 --> 00:41:41,040
Speaker 13: be or how long it'll last. Hopefully we'll avoid it,

808
00:41:41,040 --> 00:41:42,640
Speaker 13: but I wouldn't take it off the table.

809
00:41:42,640 --> 00:41:46,880
Speaker 8: At this point, wouldn't take it off the table. And

810
00:41:46,920 --> 00:41:49,400
Speaker 8: as we consider the fate of the US economy, that

811
00:41:49,480 --> 00:41:51,520
Speaker 8: is the subject of a new Bloomberg opinion piece out

812
00:41:51,520 --> 00:41:53,920
Speaker 8: by Bloomberg editor in chief emeritus Matthew Winkler. You can

813
00:41:53,960 --> 00:41:56,600
Speaker 8: find it on the terminal or online. It's entitled is

814
00:41:56,640 --> 00:41:59,640
Speaker 8: it too late to salvage the US economy?

815
00:42:01,120 --> 00:42:01,359
Speaker 5: Matt?

816
00:42:01,400 --> 00:42:03,719
Speaker 8: When we look at the US economy, the data we

817
00:42:03,800 --> 00:42:06,440
Speaker 8: got in hand today, from PPI to retail sales, When

818
00:42:06,440 --> 00:42:08,360
Speaker 8: you look at the incredible recovery we've seen in the

819
00:42:08,400 --> 00:42:11,440
Speaker 8: equity market in the aftermath of Liberation Day on April second,

820
00:42:11,480 --> 00:42:13,680
Speaker 8: it's almost like it never even happened. Where do you

821
00:42:13,680 --> 00:42:16,280
Speaker 8: see evidence that indeed might be too.

822
00:42:16,160 --> 00:42:19,120
Speaker 11: Late, Well, you see it in an equity market, the

823
00:42:19,200 --> 00:42:23,560
Speaker 11: US equity market that is underperforming the world. The last

824
00:42:23,840 --> 00:42:30,120
Speaker 11: time the equity market stocks underperformed the world was two

825
00:42:30,160 --> 00:42:32,439
Speaker 11: thousand and nine, and if you recall, that wasn't such

826
00:42:32,480 --> 00:42:36,000
Speaker 11: a great year. It was the beginning of the end

827
00:42:36,080 --> 00:42:41,759
Speaker 11: of the financial crisis, and we had long recovery from

828
00:42:41,840 --> 00:42:45,920
Speaker 11: the Great Recession. So to go, from what the Economist

829
00:42:46,120 --> 00:42:49,720
Speaker 11: and the Wall Street Journal separately last year, before voters

830
00:42:49,719 --> 00:42:52,279
Speaker 11: went to the poll said the US economy is the

831
00:42:52,400 --> 00:42:56,759
Speaker 11: envy of the world. To what Jamie Diamond refers to

832
00:42:56,840 --> 00:43:00,480
Speaker 11: as a possibility of recession is quite a drum madic

833
00:43:00,680 --> 00:43:02,000
Speaker 11: change from where we've been.

834
00:43:04,360 --> 00:43:06,840
Speaker 2: So is this stock market whistling past the graveyard?

835
00:43:07,120 --> 00:43:10,160
Speaker 11: Well, far be it. Permit it to say that, and

836
00:43:10,719 --> 00:43:15,080
Speaker 11: hardly qualified to. But what you have seen is price

837
00:43:15,160 --> 00:43:21,840
Speaker 11: fluctuations that are unprecedented. For example, these wonderful magnificent seven stocks,

838
00:43:21,920 --> 00:43:26,120
Speaker 11: Apple in particular, in just a matter of months lost

839
00:43:26,160 --> 00:43:28,920
Speaker 11: a record amount of money in the stock market that

840
00:43:28,960 --> 00:43:31,600
Speaker 11: had never happened to Apple since it was founded in

841
00:43:31,680 --> 00:43:34,680
Speaker 11: nineteen seventy six. So this is the forty nine year

842
00:43:34,680 --> 00:43:38,439
Speaker 11: old maker of the iPhone, and suddenly it is experiencing

843
00:43:38,560 --> 00:43:41,120
Speaker 11: volatility in the market that it's never seen before. And

844
00:43:41,160 --> 00:43:42,960
Speaker 11: it wasn't the only one, of course, you saw that

845
00:43:43,000 --> 00:43:46,279
Speaker 11: with NTA Alphabet and all these other stocks. So the

846
00:43:46,400 --> 00:43:51,880
Speaker 11: volatility is a, if you like, symptom of the uncertainty

847
00:43:51,920 --> 00:43:55,600
Speaker 11: and the chaos that has been triggered by what you

848
00:43:55,719 --> 00:43:59,120
Speaker 11: referred to earlier as the on and off tariffs. The

849
00:44:00,160 --> 00:44:03,319
Speaker 11: forty five percent initially for China, now it's back to

850
00:44:03,600 --> 00:44:09,799
Speaker 11: thirty something percent. But this kind of instability that is

851
00:44:09,840 --> 00:44:14,760
Speaker 11: fostered by the tariffs has created uncertainty that we didn't

852
00:44:14,800 --> 00:44:16,319
Speaker 11: have the end of last year.

853
00:44:18,200 --> 00:44:19,880
Speaker 8: Well, and of course it's one thing to look just

854
00:44:19,920 --> 00:44:22,440
Speaker 8: at stocks, but there's other asset classes to consider here

855
00:44:22,480 --> 00:44:24,800
Speaker 8: as well, looking at the bond market and what's happening

856
00:44:25,120 --> 00:44:30,080
Speaker 8: in foreign exchange, which is flashing the most glaring warning signal.

857
00:44:30,400 --> 00:44:36,839
Speaker 11: Well, the bond market that you mentioned hasn't underperformed the

858
00:44:36,880 --> 00:44:41,360
Speaker 11: world since twenty seventeen, and if you recall, that was

859
00:44:41,440 --> 00:44:45,439
Speaker 11: the last time Trump was president, so it's been quite

860
00:44:45,440 --> 00:44:52,239
Speaker 11: a while since US bonds have been underperforming the rest

861
00:44:52,280 --> 00:44:54,839
Speaker 11: of the world, and that of course is happening as

862
00:44:54,880 --> 00:44:59,480
Speaker 11: we speak now. So even though there's been this, you

863
00:44:59,520 --> 00:45:03,280
Speaker 11: know is if it didn't happen, it really has happened

864
00:45:03,320 --> 00:45:06,080
Speaker 11: in the sense that people have gone through something that

865
00:45:06,200 --> 00:45:09,040
Speaker 11: is quite traumatic and that's got to have some kind

866
00:45:09,040 --> 00:45:12,120
Speaker 11: of lasting effect. The other thing is that the foreign

867
00:45:12,160 --> 00:45:16,840
Speaker 11: exchange market is also reflective of this chaos that was

868
00:45:16,880 --> 00:45:19,840
Speaker 11: caused by the tariffs, because you had this period of

869
00:45:19,840 --> 00:45:24,879
Speaker 11: the one hundred days where the US dollar fell depreciated

870
00:45:24,920 --> 00:45:27,839
Speaker 11: against every major currency in the world, and of course

871
00:45:27,880 --> 00:45:29,520
Speaker 11: we haven't seen that quite some time.

872
00:45:31,440 --> 00:45:33,799
Speaker 2: He is Bloomberg's Editor in Chief emeritus. With a great

873
00:45:33,840 --> 00:45:36,200
Speaker 2: piece to read on the terminal and online, Matt Winkler,

874
00:45:36,239 --> 00:45:38,600
Speaker 2: We thank you so much for the insights. Matt Cayley.

875
00:45:38,600 --> 00:45:41,280
Speaker 2: He quotes the head of the Port of Los Angeles,

876
00:45:41,360 --> 00:45:43,759
Speaker 2: Jesus Soroka, who's been on the program many times with us,

877
00:45:43,960 --> 00:45:46,080
Speaker 2: reminding us we could have a major reality check when

878
00:45:46,120 --> 00:45:53,000
Speaker 2: it comes time for bactic school shopping. Thanks for listening

879
00:45:53,000 --> 00:45:56,320
Speaker 2: to the Balance of Power podcast. Make sure to subscribe

880
00:45:56,360 --> 00:45:59,080
Speaker 2: if you haven't already an Apple, Spotify, or wherever you

881
00:45:59,120 --> 00:46:01,879
Speaker 2: get your podcasts, and you can find us live every

882
00:46:01,880 --> 00:46:05,400
Speaker 2: weekday from Washington, d C. At noontime Eastern at Bloomberg

883
00:46:05,480 --> 00:46:06,239
Speaker 2: dot com.