1 00:00:02,520 --> 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 --> 00:00:17,119 Speaker 1: noon and five pm Eastern on Apple Coarcklay and Android 4 00:00:17,160 --> 00:00:20,520 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 5 00:00:20,600 --> 00:00:24,120 Speaker 1: you get your podcasts, or watch us live on YouTube. 6 00:00:25,440 --> 00:00:27,200 Speaker 2: Let's get to it without further delay. 7 00:00:27,440 --> 00:00:29,400 Speaker 3: I'll turn it over to my colleague Saliah Mosen, who 8 00:00:29,440 --> 00:00:32,280 Speaker 3: is live at the Treasury Department with the new Secretary, 9 00:00:32,400 --> 00:00:33,000 Speaker 3: Scott Besson. 10 00:00:33,120 --> 00:00:35,440 Speaker 2: Selia, thank you, Kayleie. 11 00:00:35,560 --> 00:00:38,760 Speaker 4: I'm here with US Treasure Secretary Scott Besson and Washington. 12 00:00:38,800 --> 00:00:42,520 Speaker 4: Mister Secretary, thank you for joining me. Good to see you, Uh, 13 00:00:42,880 --> 00:00:46,040 Speaker 4: mister Secretary. We are inside the cashroom at the Treasure Department. 14 00:00:46,200 --> 00:00:50,120 Speaker 4: It is almost impossible to overstate how important the work 15 00:00:50,120 --> 00:00:52,080 Speaker 4: that is done in this building is to the US 16 00:00:52,159 --> 00:00:56,400 Speaker 4: financial system. Yet right now there is widespread concern about 17 00:00:56,400 --> 00:01:00,800 Speaker 4: the DOGE team's access to sensitive payments systems. Are you 18 00:01:01,000 --> 00:01:05,200 Speaker 4: worried at all that that access and that tinkering of 19 00:01:05,280 --> 00:01:08,200 Speaker 4: the payment systems could affect the Treasury's market or cause 20 00:01:08,200 --> 00:01:08,840 Speaker 4: any disruption? 21 00:01:09,120 --> 00:01:11,880 Speaker 5: Good well, Seleiah, thank you for asking me about that, 22 00:01:11,920 --> 00:01:14,720 Speaker 5: because there's a lot of misinformation out there. First of all, 23 00:01:14,720 --> 00:01:18,680 Speaker 5: when you say the Doge team, these are Treasury employees. 24 00:01:18,760 --> 00:01:22,200 Speaker 5: It are two Treasury employees, one of whom I personally 25 00:01:22,319 --> 00:01:26,000 Speaker 5: interviewed in his final round. There is no tinkering with 26 00:01:26,160 --> 00:01:30,880 Speaker 5: the system. They are on read only. They are looking. 27 00:01:31,200 --> 00:01:35,120 Speaker 5: They can make no changes. It is an operational program 28 00:01:35,160 --> 00:01:39,240 Speaker 5: to suggest improvement. So we make one point three billion 29 00:01:39,280 --> 00:01:43,199 Speaker 5: payments a year. And this is two employees who are 30 00:01:43,319 --> 00:01:46,760 Speaker 5: working with a group of long standing employees. 31 00:01:48,400 --> 00:01:51,200 Speaker 4: The letter that the Treasure Department sent earlier this week 32 00:01:51,240 --> 00:01:56,280 Speaker 4: talked about how the team currently does not have access 33 00:01:56,360 --> 00:01:58,880 Speaker 4: to change the system. Have they, at any point this 34 00:01:59,000 --> 00:02:01,120 Speaker 4: year had the ability to make changes. 35 00:02:01,400 --> 00:02:04,240 Speaker 5: Absolutely not. This is no different than you would have 36 00:02:05,000 --> 00:02:07,480 Speaker 5: at a private company. And by the way, the ability 37 00:02:07,520 --> 00:02:10,120 Speaker 5: to change the system sits over at the Federal Reserve, 38 00:02:10,760 --> 00:02:14,359 Speaker 5: so it doesn't even lie in this building. So they 39 00:02:14,360 --> 00:02:18,280 Speaker 5: could make suggestions on how to change the system. But 40 00:02:18,639 --> 00:02:20,320 Speaker 5: we don't even run the system. 41 00:02:20,720 --> 00:02:24,040 Speaker 4: And if they ask for if they request the ability 42 00:02:24,080 --> 00:02:25,680 Speaker 4: to change the system, would you grant that. 43 00:02:26,320 --> 00:02:30,040 Speaker 5: No. Again, they have no ability to change the system. 44 00:02:30,120 --> 00:02:33,839 Speaker 5: I have no ability to grant that change. That they 45 00:02:34,040 --> 00:02:37,240 Speaker 5: can make suggestions then it would go to the Federal Reserve, 46 00:02:37,600 --> 00:02:42,080 Speaker 5: and just like any large ERP system, there would be tests. 47 00:02:42,160 --> 00:02:44,520 Speaker 5: There would be this, there would be that, and then 48 00:02:44,560 --> 00:02:48,280 Speaker 5: the Fed will determine whether these changes are robust or not. 49 00:02:49,400 --> 00:02:52,360 Speaker 4: As the Secretary of Treasure, you also oversee the IRS. 50 00:02:52,600 --> 00:02:55,280 Speaker 4: Do you know what kind of access the team has 51 00:02:55,400 --> 00:02:58,560 Speaker 4: to IRS data or individual taxpayer data? 52 00:02:58,880 --> 00:03:02,480 Speaker 5: Well, I'm glad you asked two, because look, thers, the 53 00:03:02,520 --> 00:03:06,680 Speaker 5: privacy issue is one of the biggest issues, and over 54 00:03:06,720 --> 00:03:10,440 Speaker 5: the past four years we've seen a lot of leaks 55 00:03:10,520 --> 00:03:14,839 Speaker 5: out of there. The IRS systems are quite poor. When 56 00:03:15,000 --> 00:03:18,400 Speaker 5: I started in college in nineteen eighty I learned the 57 00:03:18,480 --> 00:03:22,160 Speaker 5: program in COBAL. I think there are twelve different systems 58 00:03:22,200 --> 00:03:25,959 Speaker 5: at the IRS that still run on COBAL. But as 59 00:03:25,960 --> 00:03:29,480 Speaker 5: of now, there is no engagement at the RS. 60 00:03:29,919 --> 00:03:32,359 Speaker 4: And if they request that access, would you sign off 61 00:03:32,360 --> 00:03:33,000 Speaker 4: on that request? 62 00:03:33,840 --> 00:03:36,480 Speaker 5: They haven't, so we'll take that when it comes to it. 63 00:03:37,160 --> 00:03:39,600 Speaker 5: I think there is a lot to do there, but 64 00:03:40,480 --> 00:03:45,720 Speaker 5: the president was elected with a big agenda and to 65 00:03:45,760 --> 00:03:51,280 Speaker 5: the extent that getting the IRS in better shape is 66 00:03:51,320 --> 00:03:54,800 Speaker 5: part of that. Sure, because look, with the IRS, what 67 00:03:54,840 --> 00:03:59,280 Speaker 5: am I concerned about? I am concerned about collections. I'm 68 00:03:59,280 --> 00:04:04,480 Speaker 5: concerned about privacy, and I am concerned that the system 69 00:04:04,560 --> 00:04:07,360 Speaker 5: is robust and customer. 70 00:04:06,920 --> 00:04:10,000 Speaker 4: Service, But do you think that if they ask for 71 00:04:10,160 --> 00:04:12,520 Speaker 4: access that is something you would consider signing off on. 72 00:04:13,040 --> 00:04:15,119 Speaker 5: There are a lot of things I'd consider, But look, 73 00:04:15,120 --> 00:04:17,640 Speaker 5: we're in the middle of the tax filing season right now. 74 00:04:17,920 --> 00:04:21,919 Speaker 5: We even with the government buyouts that are being that 75 00:04:22,040 --> 00:04:26,000 Speaker 5: expire at midnight tonight, we have been mandated that the 76 00:04:26,040 --> 00:04:32,000 Speaker 5: IRS customer facing employees that they're not eligible for that 77 00:04:32,200 --> 00:04:35,719 Speaker 5: until May fifteenth, So I don't imagine anything's going to 78 00:04:35,760 --> 00:04:38,000 Speaker 5: go onto the IRS until then or beyond. 79 00:04:38,839 --> 00:04:41,599 Speaker 4: Elon Musk just a few half an hour ago tweet 80 00:04:41,640 --> 00:04:45,400 Speaker 4: it out that Treasury needs to stop approving certain payments. 81 00:04:45,560 --> 00:04:48,560 Speaker 4: Has your staff tried to block any payments here at Treasury? 82 00:04:49,080 --> 00:04:50,960 Speaker 5: We have not, and I'm glad you asked that too. 83 00:04:51,320 --> 00:04:53,480 Speaker 5: And just to put in perspective, Elon and I are 84 00:04:53,520 --> 00:04:58,799 Speaker 5: completely aligned in terms of cutting waste and increasing accountability 85 00:04:59,080 --> 00:05:04,160 Speaker 5: and transparency for the American people. I believe that this 86 00:05:04,240 --> 00:05:07,880 Speaker 5: Dove program in my adult life is one of the 87 00:05:07,920 --> 00:05:11,960 Speaker 5: most important audits of government or changes to government structure. 88 00:05:12,120 --> 00:05:16,480 Speaker 5: We have seen that. When I was in my twenties, 89 00:05:16,760 --> 00:05:20,280 Speaker 5: we had the Grace Report, and there's some great suggestions 90 00:05:20,279 --> 00:05:24,720 Speaker 5: that came out of that never implemented under Clinton and Gore. 91 00:05:25,680 --> 00:05:28,839 Speaker 5: I think it was to government efficiency or reduce government. 92 00:05:29,880 --> 00:05:33,400 Speaker 5: Nothing happened. So President Trump came in. There's a big 93 00:05:33,440 --> 00:05:37,120 Speaker 5: agenda and I think that there are gigantic cost savings 94 00:05:37,120 --> 00:05:40,039 Speaker 5: for the American people here, and I think it's unfortunate 95 00:05:40,120 --> 00:05:43,560 Speaker 5: the way the media wants to lampoon what is going on. 96 00:05:44,160 --> 00:05:48,880 Speaker 5: These are highly trained professionals. This is not some roving 97 00:05:48,960 --> 00:05:53,080 Speaker 5: band going around doing things. This is methodical and it 98 00:05:53,160 --> 00:05:55,440 Speaker 5: is going to yield big savings. 99 00:05:55,839 --> 00:05:59,240 Speaker 4: At any point, would you heed what Musk just tweeted 100 00:05:59,600 --> 00:06:02,880 Speaker 4: and stop payments from coming through Treasury. 101 00:06:02,960 --> 00:06:08,080 Speaker 5: Well, most of that happens above us, that it comes 102 00:06:08,160 --> 00:06:12,440 Speaker 5: from the Department and the agencies. We are doing a 103 00:06:12,520 --> 00:06:15,839 Speaker 5: complete review and I want to emphasize to you and 104 00:06:15,880 --> 00:06:20,080 Speaker 5: everyone watching that it is an operational review, It is 105 00:06:20,120 --> 00:06:23,120 Speaker 5: not an ideological review. We want to make sure that 106 00:06:23,240 --> 00:06:27,039 Speaker 5: the American people are getting the best practices, and I 107 00:06:27,040 --> 00:06:28,520 Speaker 5: don't think that's happening right now. 108 00:06:29,400 --> 00:06:31,880 Speaker 4: The systems here at Treasury they're known to be a 109 00:06:31,880 --> 00:06:35,839 Speaker 4: little antiquated, but very very sensitive, but also they're working. 110 00:06:36,720 --> 00:06:39,040 Speaker 4: I'm hearing, you know Bloomberg, we hear a lot about 111 00:06:39,080 --> 00:06:43,120 Speaker 4: investors being concerned that this could hit markets in some 112 00:06:43,279 --> 00:06:48,040 Speaker 4: way or start to cause a loss of confidence. What 113 00:06:48,200 --> 00:06:51,279 Speaker 4: as a long time hedge fund and investor like, do 114 00:06:51,320 --> 00:06:53,400 Speaker 4: you have a response to those concerns. 115 00:06:54,600 --> 00:06:59,680 Speaker 5: People shouldn't be concerned that at Treasury we move deliberately 116 00:07:00,080 --> 00:07:03,479 Speaker 5: and we fix things. That's the way we work. So 117 00:07:04,040 --> 00:07:06,880 Speaker 5: everyone should know that all the payments are going to 118 00:07:06,920 --> 00:07:09,480 Speaker 5: be made, they're going to be in good order, and 119 00:07:09,680 --> 00:07:12,160 Speaker 5: at the end of this review, they're going to be 120 00:07:12,280 --> 00:07:15,640 Speaker 5: substantial savings for the American taxpayer. 121 00:07:16,560 --> 00:07:19,760 Speaker 4: Mister Secretary, you have experience in currency markets, and now, 122 00:07:19,840 --> 00:07:23,800 Speaker 4: as in your new role, you oversee US currency policy. 123 00:07:24,200 --> 00:07:26,440 Speaker 4: I'd like to ask you what does a strong dollar 124 00:07:26,520 --> 00:07:26,920 Speaker 4: mean to you? 125 00:07:27,840 --> 00:07:31,920 Speaker 5: Well, first of all, the strong dollar policy is completely 126 00:07:32,080 --> 00:07:36,960 Speaker 5: intact with President Trump, and I was very happy at 127 00:07:36,960 --> 00:07:43,040 Speaker 5: his Economic clob of New York speech in August when 128 00:07:43,040 --> 00:07:47,640 Speaker 5: he re emphasized the importance of maintaining the dollar reserve 129 00:07:47,720 --> 00:07:51,200 Speaker 5: currency status. But let's think about what does a strong 130 00:07:51,240 --> 00:07:55,800 Speaker 5: dollar mean. It really means four things. One that when 131 00:07:55,840 --> 00:07:59,640 Speaker 5: we think about a fiat currency, a piece of paper 132 00:08:00,240 --> 00:08:05,080 Speaker 5: is credibility. So a strong dollar is credibility and a 133 00:08:05,200 --> 00:08:08,560 Speaker 5: rule of law that is backing it up too. It 134 00:08:08,720 --> 00:08:13,160 Speaker 5: means a composite price in the screen the Bloomberg Currency Index, 135 00:08:13,680 --> 00:08:17,880 Speaker 5: that is the dollar moving up against that three. It 136 00:08:17,960 --> 00:08:23,120 Speaker 5: is a bilateral price. So what's important to remember is 137 00:08:23,440 --> 00:08:27,080 Speaker 5: the dollar is either weak or strong versus something else. 138 00:08:27,560 --> 00:08:32,200 Speaker 5: So we want the dollar to be strong. What we 139 00:08:32,280 --> 00:08:37,120 Speaker 5: don't want is other countries to weaken their currencies to 140 00:08:37,200 --> 00:08:41,880 Speaker 5: manipulate their trade. And then fourth that we want to 141 00:08:41,960 --> 00:08:45,440 Speaker 5: have the best policies that create the environment for a 142 00:08:45,480 --> 00:08:46,120 Speaker 5: strong dollar. 143 00:08:47,120 --> 00:08:51,040 Speaker 4: Let's talk about other nations and how they manage their currencies. 144 00:08:51,480 --> 00:08:54,680 Speaker 4: The President has asked for a tariff study from several 145 00:08:54,720 --> 00:08:58,920 Speaker 4: of his cabinet officers or incoming cabinet officers Doe April first, 146 00:08:59,000 --> 00:09:01,800 Speaker 4: and the Treasury piece of that is to assess how 147 00:09:01,840 --> 00:09:05,599 Speaker 4: to handle when foreign nations manipulate their currencies. Do you 148 00:09:05,640 --> 00:09:08,600 Speaker 4: see any evidence of manipulation in foreign exchange rate markets 149 00:09:08,679 --> 00:09:09,040 Speaker 4: right now? 150 00:09:09,360 --> 00:09:13,200 Speaker 5: Well, we'll wait till the study comes out. But I 151 00:09:13,280 --> 00:09:16,720 Speaker 5: think just intuitively, you and I could agree that when 152 00:09:16,760 --> 00:09:20,679 Speaker 5: you see the accumulation of these large surpluses, that there 153 00:09:21,320 --> 00:09:25,600 Speaker 5: is not a free form trading system that's going It 154 00:09:25,640 --> 00:09:28,080 Speaker 5: could be due to the level of the currency. It 155 00:09:28,120 --> 00:09:33,640 Speaker 5: could be due to trade restrictions, It could be due 156 00:09:33,760 --> 00:09:37,680 Speaker 5: to some interest rate repression policy. So it could be 157 00:09:37,679 --> 00:09:38,240 Speaker 5: any of those. 158 00:09:39,200 --> 00:09:42,079 Speaker 4: Are there any countries that you're monitoring or watching specifically 159 00:09:42,200 --> 00:09:44,200 Speaker 4: right now? I know the President in the past has 160 00:09:44,400 --> 00:09:47,040 Speaker 4: labeled China as a currency manipulator. Do you see any 161 00:09:47,040 --> 00:09:49,280 Speaker 4: other nations that need to be closely watched. 162 00:09:49,480 --> 00:09:53,120 Speaker 5: Well, I think we'll see on April first. And as 163 00:09:53,160 --> 00:09:57,360 Speaker 5: you know that China's the most imbalanced, unbalanced economy in 164 00:09:57,360 --> 00:10:01,160 Speaker 5: the history of the world, and they are and a 165 00:10:01,200 --> 00:10:06,000 Speaker 5: deep recession right now. Their experience in deflation and they're 166 00:10:06,000 --> 00:10:08,960 Speaker 5: trying to export their way out of that. And we 167 00:10:09,000 --> 00:10:13,000 Speaker 5: can't allow that. We want fair trade, and part of 168 00:10:13,000 --> 00:10:17,800 Speaker 5: that is taking a strong position on the currency and 169 00:10:17,840 --> 00:10:18,960 Speaker 5: the terms of trade. 170 00:10:19,800 --> 00:10:23,280 Speaker 4: Yesterday, the Treasure Department had its first quarterly refunding since 171 00:10:23,679 --> 00:10:27,720 Speaker 4: you were confirmed. Do you have any plans of looking 172 00:10:27,880 --> 00:10:31,720 Speaker 4: at how the Treasury's debt issue and strategy comes together? 173 00:10:32,400 --> 00:10:36,720 Speaker 5: Well, I think the good news is that the trajectory 174 00:10:37,800 --> 00:10:42,520 Speaker 5: of the borrowing is dropping, so I was very happy 175 00:10:42,520 --> 00:10:45,960 Speaker 5: to see that. It's one of the few good surprises 176 00:10:46,080 --> 00:10:49,520 Speaker 5: I was left by the previous administration. So the trajectory 177 00:10:49,679 --> 00:10:55,200 Speaker 5: is good and the government's well financed into the third quarter, 178 00:10:55,720 --> 00:11:01,120 Speaker 5: and I believe that as we as it becomes apparent 179 00:11:01,240 --> 00:11:04,560 Speaker 5: that the present's agenda is working, that we'll see a 180 00:11:04,600 --> 00:11:08,360 Speaker 5: great deal of non inflationary growth and I think that 181 00:11:08,360 --> 00:11:12,360 Speaker 5: that will help us calibrate what the debt policy should be. 182 00:11:12,760 --> 00:11:17,080 Speaker 5: But I don't see any changes in the issuance for 183 00:11:17,160 --> 00:11:18,240 Speaker 5: the foreseeable future. 184 00:11:18,520 --> 00:11:20,440 Speaker 4: And what about the process. Do you think that tea 185 00:11:20,480 --> 00:11:24,040 Speaker 4: BAC is the most effective way of getting feedback from markets? 186 00:11:24,200 --> 00:11:28,000 Speaker 5: Well, I want to think all the members of tea 187 00:11:28,040 --> 00:11:31,960 Speaker 5: BAC who are here this week, they are a very 188 00:11:32,080 --> 00:11:38,280 Speaker 5: elite group. I think that maybe over time we need 189 00:11:38,320 --> 00:11:41,120 Speaker 5: to think about the style of engagement. It is turned 190 00:11:41,240 --> 00:11:46,319 Speaker 5: into more of a research think tank than direct market engagement, 191 00:11:46,520 --> 00:11:49,520 Speaker 5: and that's going to require some changes from both sides. 192 00:11:49,720 --> 00:11:52,520 Speaker 5: I believe when TEABAC was originally started, it was supposed 193 00:11:52,520 --> 00:11:56,760 Speaker 5: to be a market feedback mechanism, a little less of 194 00:11:56,920 --> 00:12:01,280 Speaker 5: a think tank, and we've been assigning research projects, So 195 00:12:01,920 --> 00:12:05,400 Speaker 5: I think there's some recalibration on both sides. But I 196 00:12:05,440 --> 00:12:10,319 Speaker 5: think that whatever we do, t BAC will still exist. 197 00:12:10,840 --> 00:12:14,480 Speaker 4: Mistress Secretary you said yesterday in an interview that the 198 00:12:14,480 --> 00:12:18,560 Speaker 4: Trump administration is more focused on long term gields than 199 00:12:18,640 --> 00:12:21,680 Speaker 4: what the Federal Reserve is doing, which is a bold statement. 200 00:12:22,200 --> 00:12:23,400 Speaker 2: I want to ask, how. 201 00:12:23,240 --> 00:12:26,520 Speaker 4: Do you plan to keep a lid on yields considering 202 00:12:26,559 --> 00:12:29,440 Speaker 4: the deluge of debt issuance that is coming down the 203 00:12:29,440 --> 00:12:32,120 Speaker 4: pike and also some of the inflationary risks that are ahead. 204 00:12:32,360 --> 00:12:35,839 Speaker 5: Well, one of the things I wanted to emphasize is 205 00:12:35,920 --> 00:12:40,440 Speaker 5: that we are not focused on whether the Fed is 206 00:12:40,480 --> 00:12:43,760 Speaker 5: going to cut not cut. What we are focused on 207 00:12:43,960 --> 00:12:47,840 Speaker 5: is lowering rates, So we are less focused on the 208 00:12:47,880 --> 00:12:50,280 Speaker 5: specific of rate cuts and how do we get the 209 00:12:50,320 --> 00:12:54,280 Speaker 5: whole curve down. I mentioned that the tenure I believe 210 00:12:54,760 --> 00:12:59,319 Speaker 5: is the important price to focus on its mortgages. It's 211 00:12:59,400 --> 00:13:05,000 Speaker 5: long term capital formation. So and look, I think with 212 00:13:05,160 --> 00:13:12,319 Speaker 5: the President's policies of energy, dominance, deregulation, and non inflationary growth, 213 00:13:12,960 --> 00:13:17,160 Speaker 5: I think that the tenure is going to naturally come down. 214 00:13:17,400 --> 00:13:19,920 Speaker 5: And then look, on top of it, what if we 215 00:13:20,040 --> 00:13:23,400 Speaker 5: do get some big savings on the spending side from 216 00:13:23,440 --> 00:13:27,040 Speaker 5: the dose programs. Like let's think of a naive formula 217 00:13:27,600 --> 00:13:35,199 Speaker 5: government equals spending minus taxes. For my entire career and beyond, 218 00:13:35,280 --> 00:13:43,320 Speaker 5: maybe even back to pre FDR the government equal spending 219 00:13:43,360 --> 00:13:49,280 Speaker 5: minus taxes the S The Republicans we like spending, We 220 00:13:49,440 --> 00:13:51,520 Speaker 5: just wanted to raise it less. The Democrats want to 221 00:13:51,559 --> 00:13:56,560 Speaker 5: raise it more taxes. Democrats want tax increases. We want 222 00:13:56,600 --> 00:13:59,440 Speaker 5: tax cuts. What nobody's singing about is what if the 223 00:13:59,840 --> 00:14:03,360 Speaker 5: S actually went down? What if it actually goes down 224 00:14:03,520 --> 00:14:05,720 Speaker 5: because of everything we're doing right now? 225 00:14:06,120 --> 00:14:08,720 Speaker 4: But what about the inflation concerns that are stumming from 226 00:14:08,800 --> 00:14:10,400 Speaker 4: the tariffs and tariff threats. 227 00:14:11,240 --> 00:14:15,839 Speaker 5: Look that I'm not sure that where this narrative the 228 00:14:15,880 --> 00:14:20,360 Speaker 5: tariffs for the country putting on the tariffs is inflationary, 229 00:14:21,080 --> 00:14:24,000 Speaker 5: that we could have a small one time price adjustment 230 00:14:24,480 --> 00:14:27,800 Speaker 5: that as we saw in Trump one point zero, that 231 00:14:27,880 --> 00:14:32,320 Speaker 5: the deregulation and the other policies we stayed right around 232 00:14:32,320 --> 00:14:37,480 Speaker 5: the Fed's target level. So I'm unconcerned about that. I 233 00:14:37,520 --> 00:14:42,360 Speaker 5: think especially that China, now given all their excess capacity, 234 00:14:43,400 --> 00:14:46,760 Speaker 5: will no matter the level of the tariffs, will end 235 00:14:46,840 --> 00:14:48,000 Speaker 5: up eating quite a bit. 236 00:14:49,080 --> 00:14:53,040 Speaker 4: There's a lot of uncertainty around tariffs. We see them 237 00:14:53,080 --> 00:14:58,120 Speaker 4: threatened or signaled, and that they're taken back. It appears 238 00:14:58,160 --> 00:15:01,560 Speaker 4: as if this administration might be unfriendly to businesses. 239 00:15:01,600 --> 00:15:02,080 Speaker 5: Is that right? 240 00:15:04,600 --> 00:15:04,880 Speaker 6: Really? 241 00:15:05,640 --> 00:15:08,040 Speaker 5: I think it's just the opposite. I think this is 242 00:15:08,080 --> 00:15:13,360 Speaker 5: the most pro business administration in history, and everything we 243 00:15:13,440 --> 00:15:17,680 Speaker 5: are doing is going to increase the after tax return 244 00:15:17,880 --> 00:15:23,320 Speaker 5: capital and as a result, working Americans will have very 245 00:15:23,440 --> 00:15:26,840 Speaker 5: high real wage growth. That what we've seen over the 246 00:15:26,840 --> 00:15:31,040 Speaker 5: past four years is the government and government adjacent sectors 247 00:15:31,400 --> 00:15:35,040 Speaker 5: providing the employment growth. And why have we experienced a 248 00:15:35,040 --> 00:15:39,320 Speaker 5: supportability crisis? First there was a massive spending met by 249 00:15:39,440 --> 00:15:43,880 Speaker 5: increased regulation, which caused inflation, and then government and government 250 00:15:43,960 --> 00:15:47,840 Speaker 5: adjacent jobs do not call real wage growth because they 251 00:15:47,880 --> 00:15:52,000 Speaker 5: move up at CPI. So I think that we are 252 00:15:52,000 --> 00:15:55,640 Speaker 5: going to not only be business friendly, but very very 253 00:15:55,680 --> 00:15:57,240 Speaker 5: friendly for working Americans. 254 00:15:57,600 --> 00:16:01,600 Speaker 4: We're seeing companies already under some stress from the tariff threats, 255 00:16:01,760 --> 00:16:05,480 Speaker 4: China is investigating Google, and also, as you know, are 256 00:16:05,480 --> 00:16:07,480 Speaker 4: well aware that business is like to be able to 257 00:16:07,560 --> 00:16:11,080 Speaker 4: plan ahead. But with so much policy uncertainty, that predictability 258 00:16:11,080 --> 00:16:13,960 Speaker 4: factor is gone. That all points to a little bit 259 00:16:13,960 --> 00:16:14,960 Speaker 4: of a tougher environment. 260 00:16:15,280 --> 00:16:17,280 Speaker 5: Well, look, I think the best thing we can do 261 00:16:17,360 --> 00:16:21,400 Speaker 5: for predictability is make the tax cuts and jaw back permanent. 262 00:16:21,800 --> 00:16:23,880 Speaker 5: That would be the single best thing we could do 263 00:16:24,200 --> 00:16:26,760 Speaker 5: for predictability, We can go back to the one hundred 264 00:16:26,760 --> 00:16:31,760 Speaker 5: percent expensing and add some new features that I think 265 00:16:31,840 --> 00:16:34,280 Speaker 5: business is going to be very happy with. But again, 266 00:16:34,320 --> 00:16:38,640 Speaker 5: the most important thing is that it filters down to 267 00:16:39,200 --> 00:16:43,280 Speaker 5: working wages, which is what we saw the President Trump's 268 00:16:43,320 --> 00:16:47,800 Speaker 5: first administration. Hourly workers did better than supervisory workers. 269 00:16:48,560 --> 00:16:50,480 Speaker 4: Well, let me ask you about the tax plan. Then, 270 00:16:51,000 --> 00:16:55,720 Speaker 4: on the campaign trail, Trump floated no taxes on tips 271 00:16:56,000 --> 00:16:59,520 Speaker 4: and cutting the corporate rate and a lot of other proposals. 272 00:17:00,000 --> 00:17:02,480 Speaker 4: How are you going to juggle which campaign promises are 273 00:17:02,560 --> 00:17:06,280 Speaker 4: high on that the priority list for the bill, considering 274 00:17:06,320 --> 00:17:07,960 Speaker 4: how costly everything would be. 275 00:17:08,240 --> 00:17:12,720 Speaker 5: Well, that we're just starting the process now and that 276 00:17:12,840 --> 00:17:16,640 Speaker 5: we'll do what President Trump will give us his priorities. 277 00:17:16,840 --> 00:17:20,520 Speaker 5: But I can tell you the real priority is fixing 278 00:17:20,560 --> 00:17:23,600 Speaker 5: this affordability crisis for the American people. And when you 279 00:17:23,600 --> 00:17:26,760 Speaker 5: think about no tax on tips, no tax on Social Security, 280 00:17:27,080 --> 00:17:32,159 Speaker 5: no tax on overtime, potentially putting back in auto loan deductibility, 281 00:17:32,600 --> 00:17:35,800 Speaker 5: all of those benefits accrue to the bottom fifty percent 282 00:17:36,320 --> 00:17:41,560 Speaker 5: of income earners in America. They have really taken it 283 00:17:41,960 --> 00:17:46,160 Speaker 5: between the eyes for the past four years, and that's unsustainable. 284 00:17:46,960 --> 00:17:48,679 Speaker 4: Before I let you go, mister secretary, I want to 285 00:17:48,680 --> 00:17:52,040 Speaker 4: ask you if you have had your traditional weekly meeting 286 00:17:52,160 --> 00:17:53,280 Speaker 4: with FED Chair Powell. 287 00:17:53,359 --> 00:17:56,520 Speaker 5: Yet we did that. I did an away game over 288 00:17:56,680 --> 00:18:00,720 Speaker 5: the FED. We had a very nice breakfast. Chair Peal 289 00:18:00,800 --> 00:18:03,080 Speaker 5: and I don't know each other well, so it is 290 00:18:03,320 --> 00:18:04,159 Speaker 5: very constructive. 291 00:18:04,359 --> 00:18:06,880 Speaker 4: How do you view that relationship involving the two agencies 292 00:18:07,200 --> 00:18:09,800 Speaker 4: and buildings are supposed to work very closely together, And 293 00:18:09,840 --> 00:18:11,760 Speaker 4: you've had some criticism in the past. 294 00:18:11,560 --> 00:18:14,359 Speaker 5: Of his work, and as I said at my hearing, 295 00:18:15,320 --> 00:18:18,040 Speaker 5: everything I'm going to talk about is things the Fed's 296 00:18:18,080 --> 00:18:22,639 Speaker 5: done in the past prospectively monetary policy. I will not 297 00:18:22,880 --> 00:18:25,320 Speaker 5: comment on, and I'm sure he's going to do the 298 00:18:25,400 --> 00:18:27,480 Speaker 5: right thing so there'll be no criticism. 299 00:18:27,760 --> 00:18:30,080 Speaker 4: All right, Well, mister secretary, thank you so much for joining. 300 00:18:30,200 --> 00:18:30,920 Speaker 4: Kaylee back to. 301 00:18:30,880 --> 00:18:35,840 Speaker 3: You, all right, Bloomberg Salaya Mosten live at the Treasury 302 00:18:35,880 --> 00:18:39,520 Speaker 3: Department with the newly minted Treasury Secretary Scott Besson. A 303 00:18:39,520 --> 00:18:43,080 Speaker 3: wonderful interview taking place here on Bloomberg TV and radio. 304 00:18:45,280 --> 00:18:48,760 Speaker 1: You're listening to the Bloomberg Balance of Power podcasts. Catch 305 00:18:48,840 --> 00:18:51,680 Speaker 1: us live weekdays at noon and five pm. He's Durn 306 00:18:51,800 --> 00:18:55,240 Speaker 1: on Apple Cockley and Android Auto with the Bloomberg Business app. 307 00:18:55,280 --> 00:18:58,320 Speaker 1: You can also listen live on Amazon Alexa from our 308 00:18:58,320 --> 00:19:04,560 Speaker 1: flagship New York station Just Say Alexa played Bloomberg eleven thirty. 309 00:19:04,040 --> 00:19:06,680 Speaker 3: Because we just heard from the Treasury Secretary Scott Besson. 310 00:19:06,760 --> 00:19:10,040 Speaker 3: In his view and presumably the administration's view overall, the 311 00:19:10,080 --> 00:19:13,160 Speaker 3: best thing for economic predictability, he says, is to make 312 00:19:13,480 --> 00:19:16,840 Speaker 3: the twenty seventeen tax cuts permanent. This, of course, is 313 00:19:16,840 --> 00:19:20,399 Speaker 3: one of the legislative objectives of President Trump and of 314 00:19:20,440 --> 00:19:24,080 Speaker 3: this Republican controlled Congress. The question is how exactly they 315 00:19:24,119 --> 00:19:27,240 Speaker 3: do that and when and how big is the bill? 316 00:19:27,480 --> 00:19:29,320 Speaker 2: And it's those questions they're working through. Today. 317 00:19:29,400 --> 00:19:32,080 Speaker 3: Is Donald Trump convened House Republicans at the White House 318 00:19:32,359 --> 00:19:35,360 Speaker 3: to talk about the way forward on the budget. It's 319 00:19:35,359 --> 00:19:39,600 Speaker 3: a complicated process. A budget reconciliation package can be a 320 00:19:39,600 --> 00:19:42,760 Speaker 3: big thing, or it can be two pretty big things, 321 00:19:42,800 --> 00:19:46,720 Speaker 3: as the Senate would prefer. Lindsey Graham saying he's losing 322 00:19:46,760 --> 00:19:48,600 Speaker 3: patience with the House and he's going to go ahead 323 00:19:49,040 --> 00:19:53,000 Speaker 3: and pursue a budget resolution on part of this, the 324 00:19:53,040 --> 00:19:56,119 Speaker 3: border and defense and energy, and the Senate wants to 325 00:19:56,119 --> 00:19:58,240 Speaker 3: get to taxes later. The question is whether the House 326 00:19:58,640 --> 00:20:00,399 Speaker 3: can get it back together on its e idea for 327 00:20:00,440 --> 00:20:03,720 Speaker 3: a one big, beautiful bill before that happens. So for more, 328 00:20:03,800 --> 00:20:05,960 Speaker 3: let's turn to our political panel. Rick Davis is with 329 00:20:06,040 --> 00:20:09,560 Speaker 3: me Stone Court, Capital partner and Republican strategist, alongside Democratic 330 00:20:09,600 --> 00:20:11,440 Speaker 3: strategist Caitlin Legacki. 331 00:20:12,160 --> 00:20:12,320 Speaker 7: Rick. 332 00:20:12,400 --> 00:20:15,120 Speaker 3: Obviously, the Speaker of the House, Mike Johnson, had laid 333 00:20:15,119 --> 00:20:17,680 Speaker 3: out a pretty ambitious timeline for trying to get one 334 00:20:17,720 --> 00:20:22,080 Speaker 3: big package done. The more time that passes without forward progress, 335 00:20:22,240 --> 00:20:24,800 Speaker 3: is it the greater likelihood that this thing does get 336 00:20:24,880 --> 00:20:25,720 Speaker 3: split into parts? 337 00:20:27,040 --> 00:20:30,280 Speaker 8: Yeah? I actually, you know, based on where everybody is today, 338 00:20:30,680 --> 00:20:33,760 Speaker 8: I think there's literally no chance at the House of 339 00:20:33,800 --> 00:20:38,600 Speaker 8: Representatives on this timetable that you just described the Speaker 340 00:20:38,680 --> 00:20:42,040 Speaker 8: Johnson has, which includes getting and all these things done, 341 00:20:42,119 --> 00:20:45,320 Speaker 8: the debt limit, the budget for this year, you know, 342 00:20:45,480 --> 00:20:48,679 Speaker 8: all the reconciliation work that he's talking about doing, including 343 00:20:48,800 --> 00:20:55,440 Speaker 8: an extension or making permanent the TCJA, all that by April. 344 00:20:56,000 --> 00:21:00,320 Speaker 8: I don't think so. I mean, it's herculean task in 345 00:21:00,440 --> 00:21:03,920 Speaker 8: Washington to do something like that. So I think what 346 00:21:04,000 --> 00:21:06,720 Speaker 8: you see is what you get, which is the Senence 347 00:21:06,800 --> 00:21:12,520 Speaker 8: already moving their budget, their border and their Defense bill 348 00:21:12,840 --> 00:21:17,479 Speaker 8: that Donald Trump clearly wants and endorses as quickly as 349 00:21:17,520 --> 00:21:20,879 Speaker 8: it can and leave time then throughout the course of 350 00:21:20,920 --> 00:21:23,399 Speaker 8: the rest of the year to get done the work 351 00:21:23,520 --> 00:21:27,840 Speaker 8: of making those tax tests permanent and increasing those taxests 352 00:21:27,880 --> 00:21:31,280 Speaker 8: by other policy measures that Donald Trump hasn't even really 353 00:21:31,400 --> 00:21:32,840 Speaker 8: endorsed or outlined yet. 354 00:21:34,600 --> 00:21:37,800 Speaker 3: Well, so, Caitlin, here's the thing about what's making this 355 00:21:37,840 --> 00:21:40,520 Speaker 3: difficult in the House. It's that there's hardline conservatives who 356 00:21:40,520 --> 00:21:42,680 Speaker 3: want to see steep spending cuts and that's not really 357 00:21:42,680 --> 00:21:44,800 Speaker 3: in line with what leadership thinks is realistic when you 358 00:21:44,840 --> 00:21:48,600 Speaker 3: consider moderate members and the fact that the Senate needs 359 00:21:48,600 --> 00:21:50,560 Speaker 3: to be on board with these ideas as well. If 360 00:21:50,600 --> 00:21:53,560 Speaker 3: the Senate moves first and splits these things into giving 361 00:21:53,600 --> 00:21:57,240 Speaker 3: the border win to the President and potentially a border 362 00:21:57,320 --> 00:22:00,280 Speaker 3: win to those hardline conservatives, why then, if it's to 363 00:22:00,320 --> 00:22:03,000 Speaker 3: a second tax package, would those same hardline conservatives be 364 00:22:03,080 --> 00:22:05,440 Speaker 3: willing without other incentives to do things. 365 00:22:05,320 --> 00:22:07,000 Speaker 2: That could add to the deficit. 366 00:22:07,240 --> 00:22:10,520 Speaker 3: If one gets past how hard much harder does number 367 00:22:10,520 --> 00:22:11,400 Speaker 3: two become. 368 00:22:12,600 --> 00:22:15,919 Speaker 6: It's incredibly difficult. I mean, Democrats had this problem with 369 00:22:16,720 --> 00:22:19,040 Speaker 6: the Infrastructure Bill and then the Build Back Better Act 370 00:22:19,480 --> 00:22:24,480 Speaker 6: during President Biden's term. But I think the reason that 371 00:22:24,520 --> 00:22:27,000 Speaker 6: this gets much much more difficult if you split this 372 00:22:27,080 --> 00:22:30,359 Speaker 6: into two bills is then Republicans are going to be 373 00:22:30,359 --> 00:22:33,800 Speaker 6: in a position where they have to trade making the 374 00:22:33,840 --> 00:22:38,040 Speaker 6: tax cuts permanent in exchange for other budgetary offsets. The 375 00:22:38,119 --> 00:22:42,159 Speaker 6: thing about reconciliation bills is that they have to be 376 00:22:42,280 --> 00:22:45,520 Speaker 6: paid for, and so where there's risk there is that 377 00:22:45,560 --> 00:22:50,200 Speaker 6: the biggest chunks of federal spending are things like veterans benefits, 378 00:22:50,359 --> 00:22:55,440 Speaker 6: social Security, medicare things that are incredibly popular and will 379 00:22:55,440 --> 00:23:00,960 Speaker 6: be politically very toxic if Republicans dismantle those programs or 380 00:23:01,000 --> 00:23:04,080 Speaker 6: slash their funding in exchange for corporate tax cuts. So 381 00:23:04,119 --> 00:23:05,639 Speaker 6: that's the line they're going to have to walk. 382 00:23:07,520 --> 00:23:10,600 Speaker 3: Well, So if you're trying to walk that line, Rick, 383 00:23:10,680 --> 00:23:13,720 Speaker 3: obviously you can see where the difficulties lie in there. 384 00:23:13,720 --> 00:23:16,840 Speaker 3: And Seleiah was just talking about this with Secretary Besstt, 385 00:23:16,840 --> 00:23:19,040 Speaker 3: this notion that there are a lot of tax ideas 386 00:23:19,040 --> 00:23:21,119 Speaker 3: that have been put forward when it comes to reduce 387 00:23:21,240 --> 00:23:24,280 Speaker 3: or no tax on tips, on social Security, on overtime. 388 00:23:24,359 --> 00:23:26,200 Speaker 3: Is it going to be a matter of just whittling 389 00:23:26,280 --> 00:23:29,320 Speaker 3: down what tax stuff can ultimately get through. Could we 390 00:23:29,400 --> 00:23:31,360 Speaker 3: end up in a world where actually all that happens 391 00:23:31,400 --> 00:23:34,960 Speaker 3: is an extension of the twenty seventeen package could be. 392 00:23:36,000 --> 00:23:37,600 Speaker 8: And I think you've got to remember too on the 393 00:23:37,600 --> 00:23:41,280 Speaker 8: political dynamic in the House, and this includes Democrats. If 394 00:23:41,320 --> 00:23:46,320 Speaker 8: they let this tax cuts expire from twenty seventeen, it'll 395 00:23:46,320 --> 00:23:48,399 Speaker 8: be the greatest tax increase in the history of the 396 00:23:48,480 --> 00:23:52,159 Speaker 8: United States. There are a lot of vulnerable Democrats in 397 00:23:52,840 --> 00:23:56,080 Speaker 8: Trump districts who are not going to vote for the 398 00:23:56,160 --> 00:23:59,480 Speaker 8: large or sit back and vote against tax cuts that 399 00:23:59,520 --> 00:24:03,760 Speaker 8: would rest bolt in an increase in their constituency tax 400 00:24:04,040 --> 00:24:08,679 Speaker 8: taxes significantly. And so it's not just this Republican versus 401 00:24:08,680 --> 00:24:11,919 Speaker 8: Democratic dynamic. And that's why I think having a standalone 402 00:24:12,160 --> 00:24:13,960 Speaker 8: tax bill to vote on before the end of the year, 403 00:24:14,119 --> 00:24:17,960 Speaker 8: as people ramp up for elections next year, that they're 404 00:24:17,960 --> 00:24:20,119 Speaker 8: going to think twice if you're a Democrat about voting 405 00:24:20,160 --> 00:24:24,320 Speaker 8: against this Trump tax policy. And look, you're not going 406 00:24:24,400 --> 00:24:27,000 Speaker 8: to get some of these Republicans no matter what I mean, 407 00:24:27,040 --> 00:24:31,000 Speaker 8: no matter if you even find offsets for this. These 408 00:24:31,040 --> 00:24:34,600 Speaker 8: are people who don't support Donald Trump's agenda, regardless of 409 00:24:34,640 --> 00:24:38,040 Speaker 8: what it is. These are folks who supported opponents to 410 00:24:38,119 --> 00:24:41,560 Speaker 8: him in the primary they're not on board like the 411 00:24:41,640 --> 00:24:44,680 Speaker 8: majority of the Republican caucus, and you're going to have 412 00:24:44,720 --> 00:24:48,760 Speaker 8: to find Democrats to offset that. And if you pile 413 00:24:48,840 --> 00:24:51,840 Speaker 8: everything into one big package, it's going to be much 414 00:24:51,880 --> 00:24:56,200 Speaker 8: more complicated because then you're pressuring also, you know, sort 415 00:24:56,200 --> 00:25:00,840 Speaker 8: of Biden district Republicans. Remember what's looming over top of all, 416 00:25:00,880 --> 00:25:05,400 Speaker 8: this is the saltes. 417 00:25:03,720 --> 00:25:04,520 Speaker 3: Ay Yes. 418 00:25:06,000 --> 00:25:08,560 Speaker 2: Buzzword here on Bloomberg TV and Radio. 419 00:25:08,640 --> 00:25:11,879 Speaker 3: Yes, the salt cap will feature in these conversations. Rick 420 00:25:11,960 --> 00:25:14,879 Speaker 3: Davis and Caitlin Lagaki our political panel here on Balance 421 00:25:14,920 --> 00:25:15,600 Speaker 3: of Power today. 422 00:25:15,640 --> 00:25:16,400 Speaker 2: Thank you so much. 423 00:25:16,400 --> 00:25:19,159 Speaker 3: I'll be joined straight ahead by Republican Congressman Mike Flood 424 00:25:19,160 --> 00:25:19,800 Speaker 3: of Nebraska. 425 00:25:20,960 --> 00:25:22,840 Speaker 2: I'll be back for more on Bloomberg. 426 00:25:25,119 --> 00:25:28,600 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 427 00:25:28,680 --> 00:25:31,480 Speaker 1: us live weekdays at noon and five pm. He's durn 428 00:25:31,640 --> 00:25:35,080 Speaker 1: on Apple, Cocklay and Android Auto with the Bloomberg Business App. 429 00:25:35,119 --> 00:25:38,119 Speaker 1: You can also listen live on Amazon Alexa from our 430 00:25:38,160 --> 00:25:43,400 Speaker 1: flagship New York station Just Say Alexa played Bloomberg eleven thirty. 431 00:25:44,320 --> 00:25:46,679 Speaker 3: Some of the headlines we got out of that interview 432 00:25:46,680 --> 00:25:49,760 Speaker 3: between Bloomberg's Laya Mosen and Treasury Secretary Scott Besson that 433 00:25:49,800 --> 00:25:52,720 Speaker 3: we just listened to live here on Bloomberg TV and Radio. 434 00:25:52,760 --> 00:25:55,040 Speaker 3: In addition to talking about the dollar, we learned a 435 00:25:55,040 --> 00:25:57,160 Speaker 3: few other things, including that he's met with the Chair 436 00:25:57,200 --> 00:25:59,960 Speaker 3: of the Federal Reserve, Jerome Powell. He's not, though, interest 437 00:26:00,160 --> 00:26:03,439 Speaker 3: in commenting on monetary policy, or for that matter, concerned 438 00:26:03,440 --> 00:26:05,199 Speaker 3: about whether the fet is going to cut or not. 439 00:26:05,280 --> 00:26:07,560 Speaker 3: They're looking at other ways to bring rates lower, a 440 00:26:07,560 --> 00:26:10,679 Speaker 3: lot of that having to do with fiscal policy and 441 00:26:10,720 --> 00:26:14,159 Speaker 3: cutting government spending. On that note, he also addressed the 442 00:26:14,160 --> 00:26:16,520 Speaker 3: Department of Government Efficiency and the access they have been 443 00:26:16,560 --> 00:26:21,480 Speaker 3: given to the treasury payment systems, the Treasury Secretary, saying 444 00:26:21,480 --> 00:26:23,640 Speaker 3: that dogs will not be allowed to change the treasury 445 00:26:23,640 --> 00:26:26,000 Speaker 3: system and has absolutely had no power to do so, 446 00:26:26,920 --> 00:26:29,720 Speaker 3: and that people should not be concerned about treasury payments 447 00:26:29,840 --> 00:26:33,879 Speaker 3: being made. He also was asked about tax policy, and 448 00:26:33,920 --> 00:26:37,240 Speaker 3: he said the most important thing for economic predictability is 449 00:26:37,280 --> 00:26:40,880 Speaker 3: to make the twenty seventeen tax cuts permanent. That, of course, 450 00:26:40,960 --> 00:26:43,560 Speaker 3: is something that Congress is working on, although it's not 451 00:26:43,640 --> 00:26:46,840 Speaker 3: clear how exactly or when that is going to happen 452 00:26:46,840 --> 00:26:49,800 Speaker 3: and what all could go into this ultimate tax package. 453 00:26:49,840 --> 00:26:51,679 Speaker 3: His axios is now reporting that At a meeting at 454 00:26:51,680 --> 00:26:54,280 Speaker 3: the White House today between the President and House Republican 455 00:26:54,359 --> 00:26:57,280 Speaker 3: leaders and members, he talked about some of his other 456 00:26:57,320 --> 00:27:00,639 Speaker 3: campaign promises too, no tax on tips, on overtime, on 457 00:27:00,720 --> 00:27:04,639 Speaker 3: Social Security. It's a lot to get done, and again 458 00:27:04,680 --> 00:27:08,040 Speaker 3: the question is how as there's growing impatience in Congress 459 00:27:08,640 --> 00:27:12,280 Speaker 3: for this budget reconciliation process to really get started. As 460 00:27:12,320 --> 00:27:15,200 Speaker 3: we heard on Balance of Power yesterday from Republican Congressman 461 00:27:15,240 --> 00:27:17,880 Speaker 3: Byron Donald's of Florida, here was his take. 462 00:27:18,560 --> 00:27:21,200 Speaker 9: When it comes to tax policy, most of the Tax 463 00:27:21,200 --> 00:27:23,919 Speaker 9: Cut and Jobs Act is not new policy that we 464 00:27:23,960 --> 00:27:26,680 Speaker 9: got to work our way through. We are extending most 465 00:27:26,680 --> 00:27:29,960 Speaker 9: of that policy and having new conversations on no tax 466 00:27:30,040 --> 00:27:33,440 Speaker 9: on tips, no tax on overtime, no tax on social Security, 467 00:27:34,040 --> 00:27:37,520 Speaker 9: the ECCA, and some other new tax pieces that we're 468 00:27:37,560 --> 00:27:40,160 Speaker 9: going to have to figure out. But the political lift 469 00:27:40,240 --> 00:27:43,160 Speaker 9: is not in explaining the policies, it's moving it through 470 00:27:43,200 --> 00:27:46,320 Speaker 9: the two chambers. And my view, two bills is the way. 471 00:27:46,200 --> 00:27:47,040 Speaker 5: To go at this point. 472 00:27:48,640 --> 00:27:51,560 Speaker 3: Two bills is the way to go. He says, that's 473 00:27:51,600 --> 00:27:54,520 Speaker 3: not what House leadership has been advocating for. One big, 474 00:27:54,560 --> 00:27:56,960 Speaker 3: beautiful bill is the preference of the House. Although the 475 00:27:57,000 --> 00:28:00,560 Speaker 3: Senate does like that two bill strategy and a budget. 476 00:28:00,600 --> 00:28:03,399 Speaker 3: Chair Lindsey Graham is saying he's going to move ahead 477 00:28:03,440 --> 00:28:06,520 Speaker 3: on that next week. So the clock is ticking for 478 00:28:06,680 --> 00:28:08,560 Speaker 3: House leadership and we want to go now live to 479 00:28:08,680 --> 00:28:11,240 Speaker 3: the House. Joining me from Capitol Hill is another voice 480 00:28:11,280 --> 00:28:13,840 Speaker 3: to add to this conversation. Republican Congressman Mike Flood of 481 00:28:13,920 --> 00:28:16,879 Speaker 3: Nebraska is joining us here on Bloomberg TV and radio. 482 00:28:16,920 --> 00:28:20,200 Speaker 3: He is the vice chair of the Main Street Caucus. Congressman, 483 00:28:20,240 --> 00:28:23,159 Speaker 3: welcome back. It's always great to have you. Can you 484 00:28:23,240 --> 00:28:25,680 Speaker 3: just tell it like it is as you understand it now? 485 00:28:26,200 --> 00:28:28,639 Speaker 3: Is there a one bill plan that is looking like 486 00:28:28,720 --> 00:28:30,320 Speaker 3: it is making progress forward? 487 00:28:31,840 --> 00:28:33,679 Speaker 7: Well, we've said for a long time, most of us 488 00:28:33,680 --> 00:28:36,240 Speaker 7: in the House have said one bill makes sense. Listen, 489 00:28:36,280 --> 00:28:38,440 Speaker 7: We've got to get everybody on the same page. The 490 00:28:38,440 --> 00:28:42,360 Speaker 7: more bills you have, the more uncertainty you interject into 491 00:28:42,400 --> 00:28:44,840 Speaker 7: this whole process. You know, we're talking about tax cuts, 492 00:28:45,080 --> 00:28:49,360 Speaker 7: border energy independence, and spending cuts. Out of those four things, 493 00:28:49,360 --> 00:28:51,320 Speaker 7: there's a million things that could go wrong, and each 494 00:28:51,360 --> 00:28:54,520 Speaker 7: one of the four policy objectives, I think the only 495 00:28:54,560 --> 00:28:57,200 Speaker 7: way to go forward, like the President said, like our 496 00:28:57,240 --> 00:29:00,720 Speaker 7: Speaker has said, like our Appropriations chair has said one 497 00:29:00,920 --> 00:29:04,160 Speaker 7: big bill, and you know what, quite frankly, it's frustrating 498 00:29:04,680 --> 00:29:07,680 Speaker 7: that we can't land on an answer. Even if it 499 00:29:07,800 --> 00:29:10,480 Speaker 7: was two bills. Somebody make the call and go forward. 500 00:29:10,720 --> 00:29:12,920 Speaker 7: We can't be messing around with this. In my opinion, 501 00:29:12,920 --> 00:29:15,760 Speaker 7: it should be one bill. That's where House leadership has been, 502 00:29:16,080 --> 00:29:19,000 Speaker 7: That's where Jason Smith, the chairman of the Ways and 503 00:29:19,040 --> 00:29:21,960 Speaker 7: Means Committee, has been, and I'm hopeful that we get there. 504 00:29:22,280 --> 00:29:24,200 Speaker 7: But I'll tell you the way it is right now. 505 00:29:24,200 --> 00:29:26,320 Speaker 7: And I was on the phone last night with House Leadership, 506 00:29:26,400 --> 00:29:29,120 Speaker 7: some members of House leadership. They were still working at 507 00:29:29,120 --> 00:29:31,760 Speaker 7: eleven thirty, back and forth trying to figure out how 508 00:29:31,760 --> 00:29:33,800 Speaker 7: they could make this meeting at the White House very 509 00:29:33,840 --> 00:29:36,880 Speaker 7: productive today. And I actually think they made some good 510 00:29:37,120 --> 00:29:40,760 Speaker 7: progress last night in the Speaker's office. I really credit 511 00:29:40,960 --> 00:29:45,920 Speaker 7: folks like Mike Johnson and Chip Roy. They are working 512 00:29:45,960 --> 00:29:48,080 Speaker 7: this out, trying to get to yes, and I'm confident 513 00:29:48,120 --> 00:29:51,320 Speaker 7: we'll get there. It's always messy, but democracy is messy 514 00:29:51,400 --> 00:29:54,680 Speaker 7: and our process is messy, but the result will be good. 515 00:29:56,040 --> 00:29:58,760 Speaker 3: So who is most contributing to the mess right now? Congressman? 516 00:29:58,800 --> 00:30:01,200 Speaker 3: Is it the hardline conservative in your conference? You are 517 00:30:01,240 --> 00:30:04,520 Speaker 3: pushing for steeper spending cuts or it is or is 518 00:30:04,520 --> 00:30:07,240 Speaker 3: it anti senators like Senator Lindsay Graham who are trying 519 00:30:07,280 --> 00:30:09,200 Speaker 3: to get ahead of your chambers work. 520 00:30:10,280 --> 00:30:13,400 Speaker 7: You know, in my opinion, the House of Representatives wants 521 00:30:13,720 --> 00:30:16,400 Speaker 7: deeper spending cuts that maybe the Senate does. Right now, 522 00:30:16,440 --> 00:30:20,719 Speaker 7: that's just me reading the situation. I'm interested in spending 523 00:30:20,760 --> 00:30:24,520 Speaker 7: cuts that change the trajectory of our thirty six trillion 524 00:30:24,560 --> 00:30:28,480 Speaker 7: dollar deficit. I want to see big things done because 525 00:30:28,480 --> 00:30:31,960 Speaker 7: I want to put this whole crisis with our debt 526 00:30:32,040 --> 00:30:36,600 Speaker 7: behind us. Not everybody has the same interest there. So 527 00:30:36,800 --> 00:30:39,120 Speaker 7: from where I sit, it's not whether we extend the 528 00:30:39,160 --> 00:30:42,760 Speaker 7: tax cuts or the border or energy independence. Everything we're 529 00:30:42,800 --> 00:30:46,360 Speaker 7: talking about now really concerns how deep do we cut? 530 00:30:46,680 --> 00:30:48,680 Speaker 7: What do we cut, and how does it look and 531 00:30:48,720 --> 00:30:51,360 Speaker 7: how do we explain it to the American people? 532 00:30:52,800 --> 00:30:54,640 Speaker 3: Well, so, can you shed a little more light on 533 00:30:54,680 --> 00:30:57,600 Speaker 3: what the discussion is around what and how deep will 534 00:30:57,960 --> 00:31:00,720 Speaker 3: be cut? Considering it does seem that there isn't much 535 00:31:00,720 --> 00:31:03,400 Speaker 3: appetite to cut mandatory spending. And yet if you're trying 536 00:31:03,400 --> 00:31:05,160 Speaker 3: to get spending cuts of the size that some of 537 00:31:05,200 --> 00:31:08,040 Speaker 3: your colleagues want, you might have to tap into somewhere. 538 00:31:09,080 --> 00:31:09,800 Speaker 5: Well, absolutely, we. 539 00:31:10,160 --> 00:31:13,920 Speaker 7: Do have to tap into mandatory spending. That said, in reconciliation, 540 00:31:14,000 --> 00:31:16,520 Speaker 7: you can't touch social Security. The President has said he 541 00:31:16,520 --> 00:31:18,640 Speaker 7: does not want to see any cuts to the benefits 542 00:31:18,680 --> 00:31:23,160 Speaker 7: delivered to patients for Medicare, and I'm now hearing medicaid. However, 543 00:31:23,280 --> 00:31:26,200 Speaker 7: there are things that we can do. There are provider 544 00:31:26,320 --> 00:31:30,200 Speaker 7: taxes that are paid by health care providers and then 545 00:31:30,240 --> 00:31:32,239 Speaker 7: they get a rebate back on that. That's not a 546 00:31:32,320 --> 00:31:37,840 Speaker 7: fee for service. There's different types of funding for social 547 00:31:37,880 --> 00:31:41,280 Speaker 7: safety net programs. There's things that we don't think work 548 00:31:41,440 --> 00:31:44,320 Speaker 7: very well that have been funded for years. There's also 549 00:31:44,440 --> 00:31:47,120 Speaker 7: student loans and should we put a cap on some 550 00:31:47,200 --> 00:31:50,080 Speaker 7: of those things. There's a variety of ways to cut. 551 00:31:50,120 --> 00:31:53,720 Speaker 7: You'll see a menu of options that will come out 552 00:31:53,760 --> 00:31:56,800 Speaker 7: in March, and it will be littered with a collection 553 00:31:56,880 --> 00:31:59,760 Speaker 7: of ideas, some of which Americans are going to really 554 00:31:59,800 --> 00:32:03,400 Speaker 7: not before. But hey, if we don't sacrifice, if we 555 00:32:03,480 --> 00:32:06,120 Speaker 7: don't understand that this is going to be a painful process, 556 00:32:06,320 --> 00:32:08,760 Speaker 7: nothing's going to change. And I guess my message to 557 00:32:08,800 --> 00:32:12,240 Speaker 7: the American people is we as a nation, as Americans, 558 00:32:12,640 --> 00:32:15,640 Speaker 7: have to recognize that this is such a big problem 559 00:32:15,680 --> 00:32:18,120 Speaker 7: our debt, that we're going to have to say no 560 00:32:18,280 --> 00:32:22,000 Speaker 7: to some programs that we like but we simply can't afford. 561 00:32:22,400 --> 00:32:25,320 Speaker 7: And it's easier said than done. I'm ready to go there. 562 00:32:25,360 --> 00:32:28,400 Speaker 7: I've been preparing my constituents for such a thing. We 563 00:32:28,480 --> 00:32:30,640 Speaker 7: need the buy in of the American people to say, 564 00:32:30,640 --> 00:32:33,680 Speaker 7: you know what, this is short term pain for long 565 00:32:33,840 --> 00:32:38,160 Speaker 7: term national security, not living under this crippling thirty six 566 00:32:38,280 --> 00:32:39,280 Speaker 7: trillion dollar debt. 567 00:32:40,680 --> 00:32:43,120 Speaker 3: Well, and we know the debt reduction efforts aren't just 568 00:32:43,240 --> 00:32:46,560 Speaker 3: within your Chamber or Congress. It's also actively underway at 569 00:32:46,600 --> 00:32:49,520 Speaker 3: the Department of Government Efficiency through the efforts of Elon Musk, 570 00:32:49,560 --> 00:32:53,280 Speaker 3: and already we're seeing movement there and through executive orders 571 00:32:53,640 --> 00:32:56,040 Speaker 3: as well as any of this front running the ability 572 00:32:56,080 --> 00:32:59,840 Speaker 3: to get these spending cuts on paper in the reconciliation process. Though, 573 00:33:00,000 --> 00:33:01,480 Speaker 3: congressoon how does this all fit together? 574 00:33:02,240 --> 00:33:04,200 Speaker 7: Well, I think there are some things that Doge can 575 00:33:04,240 --> 00:33:06,640 Speaker 7: tell us about that we can do in the reconciliation. 576 00:33:06,760 --> 00:33:10,200 Speaker 7: Others will be executive branch options. I'm glad of your 577 00:33:10,240 --> 00:33:13,080 Speaker 7: reporting today. I had the same conversation with our Treasury 578 00:33:13,120 --> 00:33:16,840 Speaker 7: Secretary and Monday night I asked him, does Elon Musk 579 00:33:16,920 --> 00:33:20,000 Speaker 7: or DOGE have direct access to the federal payment system. 580 00:33:20,120 --> 00:33:24,080 Speaker 7: He said, no, they have a read only access of 581 00:33:24,320 --> 00:33:28,160 Speaker 7: past expenditures. That's no different than a state auditor having 582 00:33:28,200 --> 00:33:31,720 Speaker 7: access to all the expenditures in a state budget. I 583 00:33:31,760 --> 00:33:34,520 Speaker 7: don't see why that is so alarming. But I did 584 00:33:34,560 --> 00:33:37,880 Speaker 7: make clear to the Treasury Secretary that we're counting on 585 00:33:37,960 --> 00:33:39,760 Speaker 7: him to do a good job. We're counting on him 586 00:33:39,760 --> 00:33:42,920 Speaker 7: to protect American's private information. And I also told him 587 00:33:42,920 --> 00:33:45,040 Speaker 7: that at the end of the day, Article one of 588 00:33:45,080 --> 00:33:49,680 Speaker 7: the US Constitution gives Congress the power of the purse, 589 00:33:49,840 --> 00:33:52,840 Speaker 7: and ultimately, if these things are going to get solved, 590 00:33:53,000 --> 00:33:54,480 Speaker 7: it has to go through Congress. 591 00:33:55,920 --> 00:33:59,320 Speaker 3: Well, in Congress also, of course, has oversight responsibility. Should 592 00:33:59,320 --> 00:34:01,360 Speaker 3: Elon Musk be added to that. Does he need to 593 00:34:01,400 --> 00:34:05,920 Speaker 3: come testify in Congress as to what exactly DOJE is doing, 594 00:34:06,040 --> 00:34:10,000 Speaker 3: have some form of the legislative branch holding him accountable. 595 00:34:10,960 --> 00:34:12,759 Speaker 7: Well, I'll tell you what. Right now, he's acting at 596 00:34:12,800 --> 00:34:15,160 Speaker 7: the behest of the president who just won a national 597 00:34:15,200 --> 00:34:19,640 Speaker 7: election on this very issue of cutting government spending. I 598 00:34:19,640 --> 00:34:22,480 Speaker 7: also understand that Elon must can't make any changes to 599 00:34:22,520 --> 00:34:25,680 Speaker 7: the federal payment system, so he's going to read only capacity. 600 00:34:25,840 --> 00:34:27,759 Speaker 7: People are going to react to whatever he puts on 601 00:34:27,800 --> 00:34:30,640 Speaker 7: his platform called X. But ultimately, and I've heard this 602 00:34:30,680 --> 00:34:32,880 Speaker 7: from the President, I've heard this from the President's people. 603 00:34:33,080 --> 00:34:36,960 Speaker 7: There's only one person that speaks for this administration, and 604 00:34:37,000 --> 00:34:40,239 Speaker 7: that is President Trump himself. And President Trump has said 605 00:34:40,520 --> 00:34:42,480 Speaker 7: there are things we are going to a green wand 606 00:34:42,520 --> 00:34:44,839 Speaker 7: with Elon, there's things we might not do. I think 607 00:34:44,840 --> 00:34:48,479 Speaker 7: there's an appropriate level of oversight. Again, Elon is only 608 00:34:48,640 --> 00:34:52,360 Speaker 7: entitled to a read only version of federal expenditures. That's 609 00:34:52,520 --> 00:34:57,239 Speaker 7: not crippling democracy in any way. That's finding out what's 610 00:34:57,280 --> 00:35:01,279 Speaker 7: been going on with this huge bureaucracy. Quite frankly, a 611 00:35:01,320 --> 00:35:04,280 Speaker 7: lot of the folks that I represent are like, finally 612 00:35:04,520 --> 00:35:07,640 Speaker 7: someone's looking into this, and I'm I'm excited about where 613 00:35:07,680 --> 00:35:10,040 Speaker 7: we can go. As as a member of Congress, I 614 00:35:10,080 --> 00:35:12,759 Speaker 7: want to compliment what DOJE is doing by making those 615 00:35:12,760 --> 00:35:13,560 Speaker 7: cuts permanent. 616 00:35:15,520 --> 00:35:18,160 Speaker 3: Well, Congressman, I'd like to ask you about what else 617 00:35:18,440 --> 00:35:20,880 Speaker 3: your branch is going to have to achieve in the 618 00:35:20,920 --> 00:35:23,719 Speaker 3: not so distant future. Here, we've obviously begun our conversation 619 00:35:24,120 --> 00:35:28,160 Speaker 3: on reconciliation, but there are still funding measures that need 620 00:35:28,200 --> 00:35:31,200 Speaker 3: to somehow get passed, if not another continuing resolution by 621 00:35:31,320 --> 00:35:35,239 Speaker 3: mid next month, a debt sealing deadline that is going 622 00:35:35,280 --> 00:35:37,160 Speaker 3: to be looming as we get closer and closer to 623 00:35:37,200 --> 00:35:39,440 Speaker 3: the X date with each passing day. How do those 624 00:35:39,480 --> 00:35:42,759 Speaker 3: things get done? And frankly, are you able to do 625 00:35:42,840 --> 00:35:45,680 Speaker 3: it alone as Republicans or do you need Democratic support? 626 00:35:46,840 --> 00:35:49,200 Speaker 7: Well, I'm one of four hundred and thirty five, but 627 00:35:49,239 --> 00:35:51,480 Speaker 7: I think we should put the debt sealing conversation and 628 00:35:51,920 --> 00:35:55,360 Speaker 7: the policy in our reconciliation package and get that passed 629 00:35:55,400 --> 00:35:57,960 Speaker 7: if we can do it in a timely manner. You know, 630 00:35:58,000 --> 00:36:00,759 Speaker 7: we've got to deal with the government funding expiration on 631 00:36:00,800 --> 00:36:03,359 Speaker 7: March fourteenth. One of the things I want is I 632 00:36:03,400 --> 00:36:06,880 Speaker 7: want to see us implement our twenty twenty four budget priorities. 633 00:36:07,239 --> 00:36:09,200 Speaker 7: We should not be living under a budget that was 634 00:36:09,239 --> 00:36:12,680 Speaker 7: signed by Joe Biden. It was also authored by Senate 635 00:36:12,680 --> 00:36:16,840 Speaker 7: Democrats with House Republicans want. I want a twenty twenty 636 00:36:16,840 --> 00:36:18,800 Speaker 7: four budget that's put in place until we get to 637 00:36:18,840 --> 00:36:22,000 Speaker 7: our twenty twenty five budget, that has our priorities in it, 638 00:36:22,120 --> 00:36:25,680 Speaker 7: our focus. I don't want another simple continuing resolution just 639 00:36:25,680 --> 00:36:27,759 Speaker 7: to kick the can down the table. And if I 640 00:36:27,800 --> 00:36:29,759 Speaker 7: were an appropriator, I would think that would be a 641 00:36:29,760 --> 00:36:32,400 Speaker 7: slap in the face. They spent all last year putting 642 00:36:32,400 --> 00:36:35,000 Speaker 7: a budget together, and we're going to simply just do 643 00:36:35,160 --> 00:36:38,280 Speaker 7: a kick the can down the hill maneuver with another 644 00:36:38,360 --> 00:36:41,799 Speaker 7: continuing resolution. Listen, we're here to govern, We've put the 645 00:36:41,840 --> 00:36:45,400 Speaker 7: time in. Let's make that our funding policy for twenty 646 00:36:45,440 --> 00:36:47,120 Speaker 7: twenty four and get that done. 647 00:36:48,680 --> 00:36:48,879 Speaker 9: Well. 648 00:36:48,880 --> 00:36:50,600 Speaker 3: As you allude to kicking the can, though, at least 649 00:36:50,640 --> 00:36:53,440 Speaker 3: in most recent history, that can can't be kicked without 650 00:36:53,440 --> 00:36:56,600 Speaker 3: democratic feet also taking part in the can kicking. It 651 00:36:56,640 --> 00:36:59,680 Speaker 3: has had to be a bipartisan initiative, Congressman, And based 652 00:36:59,680 --> 00:37:02,600 Speaker 3: on the the kind of temperature in the House right 653 00:37:02,640 --> 00:37:05,120 Speaker 3: now and how displeased Democrats seem to be with what 654 00:37:05,360 --> 00:37:07,160 Speaker 3: some of what has gone on in the last few weeks, 655 00:37:07,200 --> 00:37:10,440 Speaker 3: are you confident that those votes will still be provided 656 00:37:10,480 --> 00:37:12,960 Speaker 3: to make up for Republicans who very well might not 657 00:37:13,120 --> 00:37:17,319 Speaker 3: vote for some of these policies that we're talking about here. 658 00:37:18,120 --> 00:37:20,960 Speaker 7: Well, you know we're talking about continuing budget funding. This 659 00:37:21,000 --> 00:37:24,120 Speaker 7: isn't a vote on reconciliation. I know that Tom Cole, 660 00:37:24,160 --> 00:37:28,560 Speaker 7: our Appropriations chairman, talks with his counterparts on a bipartisan 661 00:37:28,560 --> 00:37:30,560 Speaker 7: basis in the Senate, and certainly here in the House, 662 00:37:30,920 --> 00:37:33,640 Speaker 7: appropriators have their own language. They know how to work 663 00:37:33,680 --> 00:37:37,440 Speaker 7: through these funding issues. They've done this for years on 664 00:37:37,560 --> 00:37:40,000 Speaker 7: years and years. I'm confident that we can work on 665 00:37:40,040 --> 00:37:44,000 Speaker 7: a bipartisan basis. Listen, outside of reconciliation. If we're going 666 00:37:44,080 --> 00:37:46,560 Speaker 7: to make any progress the next two years, we're going 667 00:37:46,600 --> 00:37:50,520 Speaker 7: to have to work with fifty three Senators and seven 668 00:37:50,600 --> 00:37:53,400 Speaker 7: Democrats at a minimum to make the government run. And 669 00:37:53,440 --> 00:37:56,120 Speaker 7: so that should come as no surprise. We can achieve 670 00:37:56,160 --> 00:37:59,839 Speaker 7: that we've done it before. It will require some compromise, 671 00:38:00,600 --> 00:38:03,480 Speaker 7: but you know what, I've voted for those continuing resolutions. 672 00:38:03,560 --> 00:38:05,839 Speaker 7: I've been part of the bipartisan effort to put them 673 00:38:05,840 --> 00:38:08,520 Speaker 7: together as the vice chair of the Main Street Caucus, 674 00:38:08,760 --> 00:38:11,520 Speaker 7: you know, almost eighty five members strong. We are the 675 00:38:11,560 --> 00:38:13,879 Speaker 7: ones that come to work every day, that make sure 676 00:38:13,920 --> 00:38:17,360 Speaker 7: that America is open for business, that our bills are paid, 677 00:38:17,480 --> 00:38:20,719 Speaker 7: and that we are responsibly governing. And I can tell 678 00:38:20,760 --> 00:38:24,359 Speaker 7: you we will get past March fourteenth. The government will 679 00:38:24,400 --> 00:38:26,480 Speaker 7: be funded, We'll figure out our plan on the debt 680 00:38:26,520 --> 00:38:30,400 Speaker 7: service or the debt limit, and ultimately we're going to 681 00:38:30,440 --> 00:38:32,200 Speaker 7: have to find some way forward with the Senate and 682 00:38:32,200 --> 00:38:34,680 Speaker 7: maybe even some members of the House Democrats. 683 00:38:34,920 --> 00:38:37,640 Speaker 3: All right, Well we'll leave it on that note. Republican 684 00:38:37,719 --> 00:38:40,520 Speaker 3: Congressman Mike Flood of Nebraska joining me live from Capitol 685 00:38:40,600 --> 00:38:43,759 Speaker 3: Hill today. Thank you so much helping us work through 686 00:38:44,000 --> 00:38:46,200 Speaker 3: a lot of these fiscal conversations. 687 00:38:50,200 --> 00:38:53,399 Speaker 7: Thanks for listening to the Balance of Power podcast. Make 688 00:38:53,440 --> 00:38:56,360 Speaker 7: sure to subscribe if you haven't already an Apple, Spotify, 689 00:38:56,480 --> 00:38:59,040 Speaker 7: or wherever you get your podcasts, and you can find 690 00:38:59,120 --> 00:39:01,920 Speaker 7: us live every week day from Washington, DC at noontime 691 00:39:02,000 --> 00:39:04,160 Speaker 7: Eastern at Bloomberg dot com.