1 00:00:00,040 --> 00:00:02,760 Speaker 1: We're joined by Bloomberg sound on anchor Joe Matthew. Was 2 00:00:02,800 --> 00:00:05,960 Speaker 1: great to have him and Democratic Senator Mark Warner to 3 00:00:06,160 --> 00:00:08,600 Speaker 1: chew on the news that we've got to got today. 4 00:00:08,600 --> 00:00:12,440 Speaker 1: Of course, finally the announcement the Federal Reserve will remain 5 00:00:12,520 --> 00:00:15,120 Speaker 1: helmed by Fed Chair Pale, but coming in as vice 6 00:00:15,200 --> 00:00:17,920 Speaker 1: chair Little Reynard. We are still waiting to hear who 7 00:00:17,960 --> 00:00:21,439 Speaker 1: will be nominated for the three remaining seats over at 8 00:00:21,480 --> 00:00:24,239 Speaker 1: the Federal Reserve. But Senator first and foremost, your reaction 9 00:00:24,280 --> 00:00:27,080 Speaker 1: to the picks, well, I think it was great news. 10 00:00:27,160 --> 00:00:33,080 Speaker 1: I think in Jpal we not only have continuity, we 11 00:00:33,159 --> 00:00:35,559 Speaker 1: have someone that the markets are comfortable with, we have 12 00:00:35,680 --> 00:00:41,640 Speaker 1: someone that both Democrats and Republicans alike respect. I think 13 00:00:41,680 --> 00:00:46,280 Speaker 1: he will be overwhelmingly reconfirmed as as chair and le 14 00:00:46,560 --> 00:00:50,160 Speaker 1: Brainerd as one of the vice chairs. Again, we've got 15 00:00:50,159 --> 00:00:54,960 Speaker 1: a known quantity um, very very strong credentials on the 16 00:00:55,000 --> 00:00:58,720 Speaker 1: Democratic side. I think it's a great one to punch. Senator. 17 00:00:58,760 --> 00:01:00,840 Speaker 1: I wonder, as someone will be among the first to 18 00:01:00,920 --> 00:01:04,160 Speaker 1: vote on these picks through your role on the Finance Committee, 19 00:01:04,280 --> 00:01:06,760 Speaker 1: if you agree with the administration when it comes to 20 00:01:06,800 --> 00:01:10,160 Speaker 1: its baseline argument on inflation is it transitory or will 21 00:01:10,200 --> 00:01:14,200 Speaker 1: prices continue to rise through next year. Well, I think 22 00:01:14,240 --> 00:01:20,600 Speaker 1: we've all been a bit surprised at how big the 23 00:01:20,640 --> 00:01:27,080 Speaker 1: inflation bump has been. Although we're obviously in uncharted territory, 24 00:01:27,160 --> 00:01:30,600 Speaker 1: we've never gone through a complete economic shutdown and how 25 00:01:30,640 --> 00:01:34,880 Speaker 1: long it's taking, uh to get the economy reopened. I 26 00:01:34,920 --> 00:01:38,160 Speaker 1: think we have seen certain blump blips that have been transitory. 27 00:01:38,480 --> 00:01:41,440 Speaker 1: I point the lumber earlier in the year, how high 28 00:01:41,440 --> 00:01:43,479 Speaker 1: the costs went up and they started to come down. 29 00:01:43,520 --> 00:01:46,920 Speaker 1: I'm starting to hear some better things in terms of shipping, 30 00:01:47,360 --> 00:01:50,080 Speaker 1: and hopefully that will come down. But I do hope 31 00:01:50,440 --> 00:01:53,440 Speaker 1: my advice UH to the FED chair will be that 32 00:01:54,120 --> 00:01:55,840 Speaker 1: I hope we can see a little bit of tapering 33 00:01:56,240 --> 00:01:59,920 Speaker 1: and maybe that moving a little bit uh faster than 34 00:02:00,960 --> 00:02:05,360 Speaker 1: then earlier in terms of the Fed's acquisition of expanding 35 00:02:05,360 --> 00:02:09,840 Speaker 1: its its balance sheet. Um, but we get this is 36 00:02:10,280 --> 00:02:13,560 Speaker 1: uncharted territory. So I generally agree it's transitory, but I 37 00:02:13,600 --> 00:02:16,720 Speaker 1: also tend to believe there could be for the short term, 38 00:02:16,760 --> 00:02:19,360 Speaker 1: at least all of the next getting us to the 39 00:02:19,360 --> 00:02:21,800 Speaker 1: holiday season, it could get a little bit worse before 40 00:02:21,800 --> 00:02:24,960 Speaker 1: it gets better. So Dot One, of course, your democratic 41 00:02:25,000 --> 00:02:31,280 Speaker 1: colleague Elizabeth Warren was also perhaps less jubilant about the 42 00:02:31,280 --> 00:02:34,280 Speaker 1: continuity coming from J. Powe. Her warrior has, of course 43 00:02:34,320 --> 00:02:37,600 Speaker 1: been the oversight of Wall Street. The Branard, many felt 44 00:02:37,639 --> 00:02:39,679 Speaker 1: would perhaps be more tough in that respect. But we're 45 00:02:39,680 --> 00:02:42,480 Speaker 1: still waiting to fill three other seats at the Federal Reserve, 46 00:02:42,560 --> 00:02:46,120 Speaker 1: most notably the supervisory role when it comes to the banks. 47 00:02:46,320 --> 00:02:48,080 Speaker 1: What are you expecting from the role of the Federal 48 00:02:48,080 --> 00:02:51,920 Speaker 1: Reserve there or indeed the other administration appointees who have 49 00:02:52,000 --> 00:02:56,280 Speaker 1: yet to be confirmed. Well, I'm anxious for the administration 50 00:02:56,520 --> 00:03:01,560 Speaker 1: to move a bit quicker on other nominees, particularly the 51 00:03:01,600 --> 00:03:05,960 Speaker 1: regulatory UH supervision. I appreciate while I have not always 52 00:03:06,360 --> 00:03:10,320 Speaker 1: agreed with that Randy quarrels um, I did appreciate the 53 00:03:10,360 --> 00:03:13,079 Speaker 1: fact that he's been willing to kind of move on 54 00:03:13,120 --> 00:03:17,440 Speaker 1: to give the president and more flexibility. UM. You know, 55 00:03:18,120 --> 00:03:20,520 Speaker 1: I don't. I'm I'm not sure I agree with all 56 00:03:20,560 --> 00:03:24,400 Speaker 1: my colleagues that we've seen this UH any kind of 57 00:03:24,520 --> 00:03:28,640 Speaker 1: dramatic relaxation, particularly on the largest institutions. I think the 58 00:03:28,680 --> 00:03:32,080 Speaker 1: basic framework we put forward and Dodd Frank has stood 59 00:03:32,080 --> 00:03:35,760 Speaker 1: its test of time. Obviously, we we we've gone through 60 00:03:35,800 --> 00:03:39,240 Speaker 1: a pandemic and a complete economic shutdown and um While 61 00:03:39,280 --> 00:03:42,880 Speaker 1: many parts of the economy suffered, the financial financial sector 62 00:03:42,920 --> 00:03:45,360 Speaker 1: did not take the kind of hits that if we 63 00:03:45,400 --> 00:03:47,600 Speaker 1: hadn't put the kind of capital reserves in place. Out 64 00:03:47,600 --> 00:03:51,280 Speaker 1: of Dodd Frank So I would give the sector. You know, 65 00:03:51,280 --> 00:03:54,400 Speaker 1: while there may be individual areas I would have done differently, 66 00:03:54,440 --> 00:03:58,120 Speaker 1: but I think I would have given a very passing grade. 67 00:03:58,120 --> 00:03:59,920 Speaker 1: And I think candidly a lot of that was due 68 00:04:00,040 --> 00:04:04,200 Speaker 1: the reforms after the last financial crisis. Warner President Biden 69 00:04:04,280 --> 00:04:06,880 Speaker 1: today and rolling out his picks, said that share Powell, 70 00:04:07,360 --> 00:04:10,520 Speaker 1: assuming that he will be renominated or reconfirmed, I should 71 00:04:10,520 --> 00:04:13,640 Speaker 1: say we'll make climate change an issue, will acknowledge and 72 00:04:13,720 --> 00:04:16,200 Speaker 1: try to mitigate the impact of climate change, knowing that 73 00:04:16,240 --> 00:04:20,040 Speaker 1: a dozen Republican senators sent a letter to share Powell 74 00:04:20,320 --> 00:04:25,480 Speaker 1: last summer essentially criticizing the FED for changing its tone 75 00:04:25,520 --> 00:04:27,719 Speaker 1: and mission here, do you believe that that would be 76 00:04:27,760 --> 00:04:29,960 Speaker 1: the case? What would that mean for the mission of 77 00:04:30,000 --> 00:04:35,120 Speaker 1: the Central Bank? Well, I don't know any sophisticated investor 78 00:04:35,760 --> 00:04:42,159 Speaker 1: that doesn't think taking in to consideration some of the 79 00:04:42,240 --> 00:04:46,360 Speaker 1: hidden costs that are being brought about by by climate change, 80 00:04:46,960 --> 00:04:49,920 Speaker 1: we need to have those costs factored into the system. 81 00:04:49,960 --> 00:04:53,280 Speaker 1: We need to have more visibility. We just went through 82 00:04:53,279 --> 00:04:55,440 Speaker 1: a year where a third of America couldn't go outside 83 00:04:55,480 --> 00:04:58,320 Speaker 1: during the summer because of forest fires. Another third in 84 00:04:58,320 --> 00:05:02,400 Speaker 1: the South were constantly besieged by by hurricanes, and we 85 00:05:02,480 --> 00:05:06,440 Speaker 1: had more deaths frankly in flooding in New York in 86 00:05:06,480 --> 00:05:08,760 Speaker 1: basements than we even head from the hurricane. So the 87 00:05:08,839 --> 00:05:12,760 Speaker 1: notion that we could ignore climate again, I don't know 88 00:05:12,920 --> 00:05:16,279 Speaker 1: any sophisticated investor that doesn't think this should be high. 89 00:05:16,320 --> 00:05:18,279 Speaker 1: I believe not only under said, but I think on 90 00:05:18,320 --> 00:05:23,360 Speaker 1: all Central Banks agenda. It's interesting. Of course, there's plenty 91 00:05:23,360 --> 00:05:26,279 Speaker 1: of worry when it comes to the energy crisis that 92 00:05:26,320 --> 00:05:29,600 Speaker 1: dovetails nice into the consideration of the climate as well. 93 00:05:30,000 --> 00:05:33,159 Speaker 1: We have been seeing gas prices spike significantly over in Europe, 94 00:05:33,240 --> 00:05:36,520 Speaker 1: much of that coming at we see tensions rise between 95 00:05:36,560 --> 00:05:38,600 Speaker 1: Russia and Europe, whether it comes to North Stream to 96 00:05:38,880 --> 00:05:41,640 Speaker 1: also when we see, of course a build up of 97 00:05:42,000 --> 00:05:45,360 Speaker 1: troops we understand being reported the on the border of 98 00:05:45,400 --> 00:05:47,960 Speaker 1: the Ukraine that's affecting the corn market as well. Today, 99 00:05:48,120 --> 00:05:51,039 Speaker 1: From your perspective, Senator, is enough being done in the 100 00:05:51,120 --> 00:05:53,880 Speaker 1: relationship that you political relationship between the US and Russia 101 00:05:53,920 --> 00:05:56,560 Speaker 1: at this that moment, well, I also happened to be 102 00:05:56,560 --> 00:06:00,160 Speaker 1: the chairman of the Intelligence Committee. And the one thing 103 00:06:00,240 --> 00:06:03,800 Speaker 1: we are assured of is that Vladimir Putin likes to 104 00:06:03,839 --> 00:06:09,599 Speaker 1: stir the pot and his overarching goal is not only 105 00:06:09,680 --> 00:06:12,320 Speaker 1: Visavi America, but visa the NATO to try to keep 106 00:06:12,400 --> 00:06:16,200 Speaker 1: us off balance. Obviously, he has a historic view about 107 00:06:16,800 --> 00:06:21,000 Speaker 1: Ukraine that the vast majority of Ukrainians don't share. I 108 00:06:21,040 --> 00:06:24,280 Speaker 1: think the one thing that that unites Ukrainians, whether they 109 00:06:24,279 --> 00:06:26,560 Speaker 1: are in the West or even in the dumbass in 110 00:06:26,720 --> 00:06:30,640 Speaker 1: some of the eastern regions, is when you see Putin 111 00:06:30,760 --> 00:06:33,880 Speaker 1: and his forces start to mass I was in the 112 00:06:33,960 --> 00:06:37,080 Speaker 1: UK just a week ago, and this is clearly top 113 00:06:37,120 --> 00:06:41,000 Speaker 1: of mind um amongst our British friends. My hope would 114 00:06:41,040 --> 00:06:44,400 Speaker 1: be that the balance of NATO would continue to send 115 00:06:45,080 --> 00:06:51,560 Speaker 1: uh That message to Putin about adventures and adventure tactics 116 00:06:51,680 --> 00:06:56,400 Speaker 1: aground Ukraine would be destabilizing for the whole region. My 117 00:06:56,480 --> 00:06:59,279 Speaker 1: hope is well that other nations. The last thing the 118 00:06:59,320 --> 00:07:04,480 Speaker 1: world needs is put In messing in Ukraine at this moment, 119 00:07:04,640 --> 00:07:07,159 Speaker 1: as the overall global economy tries to come back from 120 00:07:07,200 --> 00:07:10,200 Speaker 1: from COVID senda to Mark Warner. We always wish we 121 00:07:10,240 --> 00:07:12,080 Speaker 1: had one time with you. Thank you so much for 122 00:07:12,120 --> 00:07:15,240 Speaker 1: your time, and Joe Matthew is sound on. You're gonna 123 00:07:15,240 --> 00:07:16,760 Speaker 1: be sticking with us, I'm pleased to say, because we 124 00:07:16,920 --> 00:07:19,400 Speaker 1: have so much more after this break. Stay tuned. We're 125 00:07:19,400 --> 00:07:23,320 Speaker 1: talking more politics, more power. That's a bloomberg. We returned 126 00:07:23,320 --> 00:07:25,640 Speaker 1: to d C where my colleague and host a sound on. 127 00:07:25,840 --> 00:07:28,560 Speaker 1: Joe Matthew is with us, standing by for all of 128 00:07:28,720 --> 00:07:31,160 Speaker 1: his radio listeners, and we want to return to the 129 00:07:31,160 --> 00:07:34,120 Speaker 1: White House where we're joined by the President's top economic advisor, 130 00:07:34,360 --> 00:07:37,520 Speaker 1: brands Is, the White House Director of the National Economic Council. 131 00:07:37,720 --> 00:07:40,360 Speaker 1: Wonderful to have you with us, Brian, and first and foremost, 132 00:07:40,840 --> 00:07:43,680 Speaker 1: it took a while to get these announcements, But what 133 00:07:43,760 --> 00:07:45,680 Speaker 1: do you make of the reaction? The market seems to 134 00:07:45,720 --> 00:07:47,880 Speaker 1: think that we've got a slightly more hawkish bent with 135 00:07:48,120 --> 00:07:51,239 Speaker 1: fed Chair Powell at the helm and certainly the rates 136 00:07:51,520 --> 00:07:53,960 Speaker 1: being factored into the market, that we could see our 137 00:07:54,000 --> 00:07:58,320 Speaker 1: first hike as soon as June. Well. The President's focus 138 00:07:58,600 --> 00:08:01,480 Speaker 1: in nominating both a Powell and Leo Brainer today was 139 00:08:01,520 --> 00:08:05,840 Speaker 1: to focus on people with experience, expertise, and independent judgment. 140 00:08:06,120 --> 00:08:09,960 Speaker 1: And we feel very good that we found two individuals 141 00:08:09,960 --> 00:08:15,360 Speaker 1: with unmatched experience, uh, sound judgment, crisis tested, coming through 142 00:08:15,400 --> 00:08:18,400 Speaker 1: this crisis, and both of them together spent a lot 143 00:08:18,400 --> 00:08:21,400 Speaker 1: of time working on this new monetary policy framework, a 144 00:08:21,400 --> 00:08:25,040 Speaker 1: commitment to a strong, robust recovery that brings everybody along. 145 00:08:25,120 --> 00:08:28,880 Speaker 1: So we feel very good about these two individuals, We 146 00:08:28,920 --> 00:08:31,080 Speaker 1: feel good about the reaction to them, and we hope 147 00:08:31,080 --> 00:08:34,560 Speaker 1: that we will get them confirmed quickly here and in place. Bryan, 148 00:08:34,640 --> 00:08:38,320 Speaker 1: just to add on Caroline's question here, Uh, the timing 149 00:08:38,360 --> 00:08:40,840 Speaker 1: of this announcement, We've been talking about this, of course 150 00:08:41,000 --> 00:08:43,760 Speaker 1: for weeks. I wonder what took so long to make 151 00:08:43,800 --> 00:08:47,640 Speaker 1: what apparently was such a non controversial announcement with Powell 152 00:08:47,679 --> 00:08:51,880 Speaker 1: and Brainerd. Why wait till today? Well, the presidents delivered 153 00:08:51,880 --> 00:08:55,320 Speaker 1: about these issues. The stakes on these decisions are high, uh, 154 00:08:55,440 --> 00:08:58,160 Speaker 1: And by making the announcement now, what we're signaling is 155 00:08:58,800 --> 00:09:01,240 Speaker 1: two very strong individual rules who we think will now 156 00:09:01,280 --> 00:09:03,360 Speaker 1: have plenty of time to be considered by the Senate 157 00:09:03,400 --> 00:09:06,480 Speaker 1: and confirmed before the end of these terms. So I 158 00:09:06,480 --> 00:09:09,480 Speaker 1: think it's an appropriate moment to get this rolling, and 159 00:09:09,520 --> 00:09:12,880 Speaker 1: I think also will be good for reinforcing something the 160 00:09:12,880 --> 00:09:16,720 Speaker 1: President reinforced today, which is the independence and the credibility 161 00:09:16,720 --> 00:09:20,720 Speaker 1: of the FED. It's incredibly important that we reinforce the 162 00:09:20,760 --> 00:09:23,440 Speaker 1: independence of this vital institution. I think the President. You 163 00:09:23,480 --> 00:09:26,280 Speaker 1: see the President prioritizing that in his announcements today, and 164 00:09:26,320 --> 00:09:28,760 Speaker 1: the timing helps to reinforce that these folks can and 165 00:09:28,840 --> 00:09:32,559 Speaker 1: will be confirmed in time before their terms expire. Senator 166 00:09:32,559 --> 00:09:35,360 Speaker 1: Elizabeth Warren says she will not vote for j. Powell 167 00:09:35,360 --> 00:09:37,880 Speaker 1: to continue in this role as chair. Not a big 168 00:09:37,920 --> 00:09:40,560 Speaker 1: surprise there. I wonder if when the President met with 169 00:09:40,600 --> 00:09:43,160 Speaker 1: Senator Warren he asked for her support, or is the 170 00:09:43,160 --> 00:09:45,560 Speaker 1: White House counting on some Republicans to make up for 171 00:09:45,559 --> 00:09:50,000 Speaker 1: progressive votes either in the Banking Committee or on the floor. Well, 172 00:09:50,040 --> 00:09:53,440 Speaker 1: Senator Warren's an enormous as enormous expertise in this area 173 00:09:53,520 --> 00:09:56,360 Speaker 1: and is a trusted partner of this White House and 174 00:09:56,440 --> 00:09:59,800 Speaker 1: the President. And we're certainly grateful to have her support 175 00:09:59,840 --> 00:10:03,200 Speaker 1: for or for Leo Branded as vice Chair. And also 176 00:10:03,320 --> 00:10:07,640 Speaker 1: understand that Chairman Powell will have broad support in in 177 00:10:07,720 --> 00:10:09,640 Speaker 1: the Senate. We've seen that over the course of the 178 00:10:09,720 --> 00:10:13,840 Speaker 1: day today from Republicans and Democrats. The chair of the 179 00:10:14,000 --> 00:10:17,560 Speaker 1: Um of the relevant committee in the in in the Senate, 180 00:10:17,640 --> 00:10:20,080 Speaker 1: as well as the Congressional Progressive Caucus, and so I 181 00:10:20,080 --> 00:10:23,319 Speaker 1: think what you're gonna see here is support from Republicans 182 00:10:23,320 --> 00:10:26,640 Speaker 1: and Democrats to reinforce the importance of the independence of 183 00:10:26,640 --> 00:10:30,360 Speaker 1: the Federal Reserve. So we're confident that both uh J. 184 00:10:30,520 --> 00:10:32,959 Speaker 1: Powell and Leo Brander will be confirmed, and also that 185 00:10:33,000 --> 00:10:36,760 Speaker 1: we're gonna work with supporters and detractors alike, particularly as 186 00:10:36,760 --> 00:10:39,040 Speaker 1: we look to this next set of nominees that the 187 00:10:39,080 --> 00:10:42,160 Speaker 1: President has to make. Importantly, the Vice Chair for Supervision, 188 00:10:42,200 --> 00:10:45,400 Speaker 1: who will oversee bank regulatory issues. Talk to us about 189 00:10:45,640 --> 00:10:50,920 Speaker 1: overseeing bank issues as well and regulation how much how 190 00:10:50,960 --> 00:10:54,720 Speaker 1: aggressive will that person be from your perspective, because that's 191 00:10:54,760 --> 00:10:58,120 Speaker 1: not a lot of the progressives according for Well, I 192 00:10:58,120 --> 00:10:59,800 Speaker 1: don't want to get ahead of the president's choice. But 193 00:11:00,120 --> 00:11:02,200 Speaker 1: you did hear him say today is that he's focused 194 00:11:02,200 --> 00:11:06,360 Speaker 1: on identifying somebody who has the credentials, the expertise, and 195 00:11:06,400 --> 00:11:09,160 Speaker 1: the toughness to do that job. It's an incredibly important 196 00:11:09,240 --> 00:11:11,720 Speaker 1: job at the FED, and I think that in his 197 00:11:11,880 --> 00:11:14,680 Speaker 1: conversations with both Jay Pollen Leo Brander, they are looking 198 00:11:14,720 --> 00:11:16,640 Speaker 1: forward to having somebody in that role and will defer 199 00:11:16,720 --> 00:11:20,320 Speaker 1: to the expertise of that person. Uh, and so it 200 00:11:20,360 --> 00:11:22,880 Speaker 1: will be a very important pick and an important compliment, 201 00:11:23,080 --> 00:11:27,360 Speaker 1: including uh, the additional to governors spots. Beyond that that 202 00:11:27,400 --> 00:11:29,839 Speaker 1: the President will have an opportunity to nominate. So all 203 00:11:29,880 --> 00:11:32,240 Speaker 1: three of those individuals will help to fill out the 204 00:11:32,320 --> 00:11:35,120 Speaker 1: slate at the FED. And that's something the President again, 205 00:11:35,160 --> 00:11:37,199 Speaker 1: it's going to take very seriously. We'll focus on getting 206 00:11:37,200 --> 00:11:39,280 Speaker 1: done here in the next couple of weeks. Brian tell 207 00:11:39,360 --> 00:11:42,720 Speaker 1: us more about those remaining seats and those remaining announcements 208 00:11:42,720 --> 00:11:45,080 Speaker 1: by the President who today said they would bring new 209 00:11:45,120 --> 00:11:49,800 Speaker 1: perspectives and different voices to the Central Bank. How would 210 00:11:49,800 --> 00:11:52,120 Speaker 1: they change the mission of the FED? What did he 211 00:11:52,160 --> 00:11:55,720 Speaker 1: mean by that? Well, I don't think they change the 212 00:11:55,760 --> 00:11:58,400 Speaker 1: core mission at all. And you heard the President reinforce 213 00:11:58,520 --> 00:12:01,680 Speaker 1: today the importance of the Fed's independence in pursuing the 214 00:12:01,760 --> 00:12:05,040 Speaker 1: dual mandate around MAXIMU employment and price stability. What they 215 00:12:05,080 --> 00:12:08,520 Speaker 1: would bring is diversity of perspective and thought that's so 216 00:12:08,600 --> 00:12:11,960 Speaker 1: necessary to actually make those decisions in a thoughtful and 217 00:12:12,040 --> 00:12:15,199 Speaker 1: independent way. The President is committed to the idea that 218 00:12:15,720 --> 00:12:18,720 Speaker 1: a body that makes such vital decisions for the American 219 00:12:18,760 --> 00:12:22,880 Speaker 1: economy should reflect America, and it should reflect the diversity 220 00:12:22,880 --> 00:12:27,000 Speaker 1: of life experiences that this economy reflects. And so I 221 00:12:27,040 --> 00:12:30,960 Speaker 1: think you'll see people who have real expertise, expertise in 222 00:12:31,000 --> 00:12:34,480 Speaker 1: the field, but also bring perspectives that we haven't had 223 00:12:34,840 --> 00:12:38,320 Speaker 1: on the FED board historically, and that will really add 224 00:12:38,360 --> 00:12:41,079 Speaker 1: to that decision making process. So, assuming you've got a 225 00:12:41,120 --> 00:12:44,000 Speaker 1: shortlist there, Brian, do you expect announcements by the end 226 00:12:44,000 --> 00:12:47,400 Speaker 1: of the year. That's certainly our focus. So we're going 227 00:12:47,440 --> 00:12:48,560 Speaker 1: to try to get it done here in the next 228 00:12:48,600 --> 00:12:51,280 Speaker 1: couple of weeks. And as you try to get those 229 00:12:51,360 --> 00:12:56,080 Speaker 1: names dotted and tease crossed, I'm I'm interested in when 230 00:12:56,160 --> 00:12:58,640 Speaker 1: you talk about diversity at the Federal Reserve level, it's 231 00:12:58,679 --> 00:13:01,320 Speaker 1: important to have those sorts of viewpoints when we see 232 00:13:01,320 --> 00:13:04,680 Speaker 1: inequality growing within the economy, when we have such an 233 00:13:04,679 --> 00:13:07,920 Speaker 1: economy that is roaring but not bringing absolutely everyone with it. 234 00:13:07,960 --> 00:13:09,679 Speaker 1: We still saw then the previous Labor Day, to the 235 00:13:09,760 --> 00:13:12,439 Speaker 1: fact that women of color in particular being left behind, 236 00:13:12,480 --> 00:13:15,120 Speaker 1: the fact that we're still not seeing participation rate at 237 00:13:15,120 --> 00:13:16,600 Speaker 1: where you want it when it comes to women and 238 00:13:16,640 --> 00:13:19,360 Speaker 1: indeed black men. How do you hope that the Federal 239 00:13:19,360 --> 00:13:21,320 Speaker 1: Reserve might be able to ease some of that it 240 00:13:21,360 --> 00:13:25,840 Speaker 1: growing inequality. Well, one of the things that the President 241 00:13:26,120 --> 00:13:30,600 Speaker 1: was most impressed by about both Chairman Powell and Leyo 242 00:13:30,679 --> 00:13:32,960 Speaker 1: Brainerd service over the last couple of years has been 243 00:13:33,000 --> 00:13:36,600 Speaker 1: their focus on developing this new monetary policy framework that 244 00:13:36,640 --> 00:13:41,079 Speaker 1: really puts at the center maximum employment broadly defined and 245 00:13:41,120 --> 00:13:44,840 Speaker 1: looks at driving and economic recovery that actually brings along 246 00:13:45,320 --> 00:13:48,000 Speaker 1: parts of the labor market and parts of our society 247 00:13:48,000 --> 00:13:52,480 Speaker 1: that have previously not benefited from economic growth and economic opportunity. 248 00:13:52,480 --> 00:13:55,400 Speaker 1: And so that's a framework that is new and important 249 00:13:55,440 --> 00:13:57,480 Speaker 1: and one that I think both chair Powell and Leo 250 00:13:57,559 --> 00:14:00,960 Speaker 1: Brainerd will be committed to pursuing even as we go 251 00:14:01,000 --> 00:14:03,560 Speaker 1: into uncertain periods and need to deal obviously with the 252 00:14:03,960 --> 00:14:06,680 Speaker 1: with the threat of inflation. So that's gonna be important 253 00:14:06,640 --> 00:14:09,120 Speaker 1: on the mouth monetary policy side. On the fiscal policy side, 254 00:14:09,360 --> 00:14:12,840 Speaker 1: that is a core focus of our agenda economic agenda. 255 00:14:13,200 --> 00:14:16,000 Speaker 1: It's something that the Infrastructure Bill will help to support, 256 00:14:16,120 --> 00:14:19,000 Speaker 1: and the Build Back Better agenda by investing, for example, 257 00:14:19,040 --> 00:14:21,800 Speaker 1: in lowering the cost of child care and elder care, 258 00:14:22,240 --> 00:14:25,200 Speaker 1: would be a key way to help more women, particularly 259 00:14:25,280 --> 00:14:28,600 Speaker 1: women of color, get back into the workforce. We've seen 260 00:14:28,640 --> 00:14:33,600 Speaker 1: this pandemic create really unfair disadvantages for low income parents 261 00:14:33,640 --> 00:14:35,920 Speaker 1: who have to make the choice between stepping out of 262 00:14:35,920 --> 00:14:38,640 Speaker 1: the workforce to care for a child. We're remaining there. 263 00:14:38,840 --> 00:14:40,800 Speaker 1: We could solve that issue get more people back to 264 00:14:40,840 --> 00:14:43,280 Speaker 1: work in a more equitable way by some of the 265 00:14:43,280 --> 00:14:46,560 Speaker 1: investments in that package. Brian, how has your own view 266 00:14:46,600 --> 00:14:49,320 Speaker 1: on inflation evolved these past weeks with some of the 267 00:14:49,440 --> 00:14:52,360 Speaker 1: data that we have seen. It's become a daily conversation, 268 00:14:52,400 --> 00:14:55,600 Speaker 1: a full time job almost for this West Wing. Do 269 00:14:55,640 --> 00:14:58,640 Speaker 1: you see prices continuing to rise until the Fed cannot 270 00:14:58,680 --> 00:15:04,080 Speaker 1: them lower with interest rate weeks? Well, the prices are 271 00:15:04,120 --> 00:15:07,640 Speaker 1: high now, no question, and that is affecting American consumers. 272 00:15:07,880 --> 00:15:09,800 Speaker 1: At the same time, we are looking at the actions 273 00:15:09,840 --> 00:15:13,240 Speaker 1: we can take as an administration to try to address those. 274 00:15:13,560 --> 00:15:15,840 Speaker 1: I think a lot of the drivers behind that is 275 00:15:15,920 --> 00:15:19,400 Speaker 1: that we still have COVID globally. It's affecting supply chains, 276 00:15:19,440 --> 00:15:22,720 Speaker 1: It's affecting the supply demand balances. We certainly expect that 277 00:15:22,800 --> 00:15:27,800 Speaker 1: to ease across time, but for example, tackling something like 278 00:15:27,800 --> 00:15:30,600 Speaker 1: the supply chain challenges at our ports allows us to 279 00:15:30,600 --> 00:15:33,120 Speaker 1: really make concrete progress. A couple of weeks ago, the 280 00:15:33,160 --> 00:15:36,360 Speaker 1: President brought stakeholders together to get our ports on the 281 00:15:36,400 --> 00:15:39,200 Speaker 1: West Coast to go seven. In the last couple of weeks, 282 00:15:39,280 --> 00:15:41,360 Speaker 1: we've seen the dwell time, the amount of time that 283 00:15:41,400 --> 00:15:44,840 Speaker 1: a container sits at port, fall by a third. Shipping 284 00:15:44,840 --> 00:15:47,480 Speaker 1: costs globally fallen by about a quarter over the last 285 00:15:47,480 --> 00:15:50,440 Speaker 1: couple of weeks, so we're seeing some concrete progress there. 286 00:15:50,680 --> 00:15:52,840 Speaker 1: On the issue of gas prices, we've been very focused. 287 00:15:52,840 --> 00:15:54,880 Speaker 1: You can anticipate the President is going to talk more 288 00:15:54,920 --> 00:15:58,120 Speaker 1: about that over the coming days. So we're gonna do 289 00:15:58,160 --> 00:16:00,760 Speaker 1: what we can to try to address these shoes head on. 290 00:16:01,280 --> 00:16:04,560 Speaker 1: While the Fed, we expect, we'll use its tools and 291 00:16:04,600 --> 00:16:09,280 Speaker 1: make those judgments independently. My house director on the National 292 00:16:09,320 --> 00:16:12,040 Speaker 1: Economic Council, Brandie's out in the cold for us. We 293 00:16:12,120 --> 00:16:15,320 Speaker 1: thank you very much. Said meanwhile, we thank also Joe 294 00:16:15,320 --> 00:16:19,120 Speaker 1: Matthew sticking with us much more as we return, stay 295 00:16:19,160 --> 00:16:22,720 Speaker 1: with us. This is bloom Mac broadcasting live from our 296 00:16:22,800 --> 00:16:28,680 Speaker 1: nation's capital. Bloomberg to New York, Bloomberg eleven Frio to Boston, 297 00:16:28,960 --> 00:16:32,760 Speaker 1: Bloomberg one O six one does San Francisco, Bloomberg nine 298 00:16:32,880 --> 00:16:36,840 Speaker 1: sixty to the country. Sirius XM General one nine and 299 00:16:36,880 --> 00:16:40,240 Speaker 1: around the globe, the Bloomberg Business app and Bloomberg Radio 300 00:16:40,400 --> 00:16:45,080 Speaker 1: dot Com. This is Bloomberg Sound On with Joe Matthew 301 00:16:47,080 --> 00:16:50,840 Speaker 1: headline on the terminal Biden Dodgess risk of Senate Showdown 302 00:16:50,880 --> 00:16:54,560 Speaker 1: with Powell brainer Ticket. Welcome to a special edition of 303 00:16:54,640 --> 00:16:57,760 Speaker 1: Sound On. I'm Joe Matthew and Washington. Now that we've 304 00:16:57,760 --> 00:17:00,280 Speaker 1: heard from Senator Mark Warner and from the press against 305 00:17:00,360 --> 00:17:04,400 Speaker 1: Chief Economic Advisor Brian D's, Director of the National Economic Council, 306 00:17:05,119 --> 00:17:07,760 Speaker 1: we circle the wagons here on the radio and assemble 307 00:17:07,800 --> 00:17:13,240 Speaker 1: the panel with Bloomberg Politics contributors Jeanie Schanzano and Rick Davis. Genie, 308 00:17:13,280 --> 00:17:16,760 Speaker 1: I'll start with you. Is this the dream ticket, as 309 00:17:16,760 --> 00:17:20,639 Speaker 1: Peter orzag mentioned earlier for Democrats? Here, you maintain continuity 310 00:17:20,680 --> 00:17:23,440 Speaker 1: at the top of the Fed. You make progressives happy 311 00:17:23,480 --> 00:17:27,919 Speaker 1: by promoting Lele Brainerd. Everybody goes home pleased with votes 312 00:17:28,080 --> 00:17:31,040 Speaker 1: to confirm am I right. I think you're right for 313 00:17:31,119 --> 00:17:34,760 Speaker 1: the moment, But he has other picks to come, and 314 00:17:34,880 --> 00:17:39,600 Speaker 1: I foresee those being much less kumbaya if you will, 315 00:17:39,880 --> 00:17:43,480 Speaker 1: And I think we may see a progressive sacrificial person 316 00:17:43,920 --> 00:17:46,639 Speaker 1: who is put up for one of those roles to 317 00:17:46,800 --> 00:17:50,439 Speaker 1: satisfy the progressives because while they are content to the 318 00:17:50,520 --> 00:17:53,800 Speaker 1: for the moment with Brainard and you know less, so 319 00:17:53,880 --> 00:17:57,240 Speaker 1: if you talk, you listen to Warren, Warrener, Elizabeth Warren 320 00:17:57,240 --> 00:18:00,760 Speaker 1: and others with Powell, they are going to now be 321 00:18:00,880 --> 00:18:05,760 Speaker 1: pushing for somebody focused on climate, somebody strong on regulation, 322 00:18:05,960 --> 00:18:08,359 Speaker 1: somebody diverse. And Joe Biden is going to have to 323 00:18:08,400 --> 00:18:10,720 Speaker 1: answer those calls or he's going to have trouble getting 324 00:18:10,720 --> 00:18:12,960 Speaker 1: his picks through and Republicans won't be as happy with 325 00:18:13,000 --> 00:18:15,280 Speaker 1: who he names. Before we get that far, Rick Davis 326 00:18:15,280 --> 00:18:17,600 Speaker 1: wanted to listen to Joe Biden today at the White House. 327 00:18:17,640 --> 00:18:21,680 Speaker 1: Some will, no doubt question why I'm renominating Jay when 328 00:18:21,680 --> 00:18:24,000 Speaker 1: he was a choice of a Republican predecessor. Why I'm 329 00:18:24,040 --> 00:18:26,480 Speaker 1: not picking a Democrat, Why I am Why am I 330 00:18:26,520 --> 00:18:29,760 Speaker 1: not picking fresh blood or taking the Fed in a 331 00:18:29,840 --> 00:18:35,199 Speaker 1: different direction? Put directly at this moment both of a 332 00:18:35,280 --> 00:18:39,560 Speaker 1: both enormous potential and enormous uncertainty for our economy. We 333 00:18:39,640 --> 00:18:43,760 Speaker 1: need stability and independence at the Federal Reserve. It's as 334 00:18:43,800 --> 00:18:46,359 Speaker 1: simple as that, Rick Davis. Was he speaking to Elizabeth 335 00:18:46,400 --> 00:18:48,760 Speaker 1: Warren or more than that? You know, I think he 336 00:18:48,800 --> 00:18:51,000 Speaker 1: was trying to talk to a much broader audience. And 337 00:18:51,720 --> 00:18:54,679 Speaker 1: it's a little confusing to me too, because the echo 338 00:18:54,840 --> 00:18:56,960 Speaker 1: out of the White House about the importance of the 339 00:18:57,000 --> 00:19:00,320 Speaker 1: independence of the FED. You're in your interview with Brian Ease, 340 00:19:00,320 --> 00:19:04,199 Speaker 1: he mentioned the same thing. Has the FED not been independent? 341 00:19:04,320 --> 00:19:06,600 Speaker 1: I mean, is this an issue we're worried about? I mean, 342 00:19:07,040 --> 00:19:10,280 Speaker 1: I don't remember the time in the recent memory where 343 00:19:10,280 --> 00:19:12,480 Speaker 1: we had a big issue with the independence of the FED. Now, 344 00:19:12,560 --> 00:19:15,159 Speaker 1: if it was a reaction to Donald Trump trying to 345 00:19:15,240 --> 00:19:18,160 Speaker 1: push the FED in a certain direction, then maybe they 346 00:19:18,160 --> 00:19:21,560 Speaker 1: should say that. But I'll be honest with you, I mean, 347 00:19:21,600 --> 00:19:26,920 Speaker 1: other than continuity, independencies is the biggest issue they've been 348 00:19:26,920 --> 00:19:30,159 Speaker 1: remarking about. And I don't even understand what the problem is. 349 00:19:30,160 --> 00:19:33,560 Speaker 1: Is that just the life of a democratic president reappointing 350 00:19:33,840 --> 00:19:37,560 Speaker 1: a Republican as chair. It's about independence, Rick David Well, 351 00:19:37,600 --> 00:19:39,680 Speaker 1: it's obviously got to be part of his message to 352 00:19:39,800 --> 00:19:43,359 Speaker 1: Democrats is like, I'm not appointing a Democrat because I 353 00:19:43,400 --> 00:19:46,880 Speaker 1: am being independent. And maybe that is the ultimate uh 354 00:19:47,480 --> 00:19:49,600 Speaker 1: message that the President is trying to get through. But 355 00:19:50,240 --> 00:19:51,760 Speaker 1: I did think it was a little odd the way 356 00:19:51,760 --> 00:19:54,440 Speaker 1: they rolled this out. I mean, this is obviously continuity week. 357 00:19:54,520 --> 00:19:57,040 Speaker 1: They could have done this on Friday. He was notifying 358 00:19:57,119 --> 00:19:59,800 Speaker 1: members of Congress senators that he was going to make 359 00:19:59,840 --> 00:20:02,760 Speaker 1: the appointments on Friday. We all thought they would do 360 00:20:02,840 --> 00:20:05,159 Speaker 1: this before the weekend. But this is the way you 361 00:20:05,280 --> 00:20:08,879 Speaker 1: launch a whole week of activity. Otherwise anything else you 362 00:20:08,920 --> 00:20:10,760 Speaker 1: do this week is just going to step on this story. 363 00:20:10,840 --> 00:20:13,960 Speaker 1: So I think the White House has finally gotten around 364 00:20:14,000 --> 00:20:17,000 Speaker 1: to this, and and now we'll see how long it sticks. 365 00:20:17,240 --> 00:20:19,320 Speaker 1: Is this continuity week Genie, I kind of like that. 366 00:20:19,359 --> 00:20:21,200 Speaker 1: I say we go with it, and might that suggest 367 00:20:21,720 --> 00:20:24,520 Speaker 1: that there are more imminent announcements to follow. I had 368 00:20:24,520 --> 00:20:26,560 Speaker 1: asked Brian D's just now by the end of the year. 369 00:20:26,560 --> 00:20:28,440 Speaker 1: He said, yeah, but we could do this tomorrow. I'm 370 00:20:28,440 --> 00:20:31,720 Speaker 1: assuming if the White House wanted to, they could. And 371 00:20:31,760 --> 00:20:33,600 Speaker 1: that's been one of the head scratching parts of this 372 00:20:33,680 --> 00:20:37,560 Speaker 1: whole story, has been why this has taken so long? Um, 373 00:20:37,600 --> 00:20:40,400 Speaker 1: you know, just to go back to the point about independence, 374 00:20:40,520 --> 00:20:43,240 Speaker 1: I do think there is something else going on here. 375 00:20:43,680 --> 00:20:45,760 Speaker 1: I do think they are trying to make an argument 376 00:20:45,840 --> 00:20:49,359 Speaker 1: that Donald Trump was putting too much pressure on the FED. Um. 377 00:20:49,480 --> 00:20:52,560 Speaker 1: He didn't go with tradition in terms of keeping yelling. 378 00:20:53,000 --> 00:20:56,280 Speaker 1: But there's also something else here. I think Joe Biden 379 00:20:56,400 --> 00:20:59,680 Speaker 1: is trying to send a message that there are limits 380 00:20:59,720 --> 00:21:03,320 Speaker 1: to what he can do about the all important issue 381 00:21:03,359 --> 00:21:06,760 Speaker 1: of inflation. He can appoint the FED chair, but they 382 00:21:06,800 --> 00:21:10,600 Speaker 1: are independent, so what they choose to do is something 383 00:21:10,680 --> 00:21:13,639 Speaker 1: he can't control. So I read that as a political 384 00:21:13,760 --> 00:21:17,399 Speaker 1: message to Democrats Republicans, particularly as we look at the 385 00:21:17,440 --> 00:21:21,160 Speaker 1: mid terms, that the FED is independent and his arms 386 00:21:21,200 --> 00:21:23,720 Speaker 1: are tied when it comes to pressuring them whether to 387 00:21:23,800 --> 00:21:26,800 Speaker 1: raise interest rates, taper, and all of these other steps 388 00:21:26,800 --> 00:21:29,320 Speaker 1: that they may be able to take. Brian Das was 389 00:21:29,359 --> 00:21:34,320 Speaker 1: speaking to the experience, this was experienced day Rick Powell. Brainer, 390 00:21:34,400 --> 00:21:37,600 Speaker 1: these are the long time steady hands at the FED, 391 00:21:37,720 --> 00:21:39,560 Speaker 1: or at least this is what we want you to think. 392 00:21:39,880 --> 00:21:42,760 Speaker 1: Is that why he did not roll out the other 393 00:21:42,880 --> 00:21:45,320 Speaker 1: names today to fill these other seats. The market obviously 394 00:21:45,400 --> 00:21:47,200 Speaker 1: wants to see the whole picture here at some point. 395 00:21:47,320 --> 00:21:50,040 Speaker 1: This is a white house that seems comfortable waiting. Yeah, 396 00:21:50,080 --> 00:21:53,040 Speaker 1: and they obviously have waited quite some time to make 397 00:21:53,080 --> 00:21:57,560 Speaker 1: these two unsurprising picks, um and and and you're right, 398 00:21:57,680 --> 00:22:00,800 Speaker 1: they certainly could have rolled out the whole late. I 399 00:22:01,160 --> 00:22:03,520 Speaker 1: think these are the easy ones to get through confirmation, 400 00:22:03,680 --> 00:22:06,960 Speaker 1: and the pressure has been on to get these two out. 401 00:22:07,359 --> 00:22:10,080 Speaker 1: So I think they've relate released some of the gas 402 00:22:10,080 --> 00:22:13,440 Speaker 1: and the tire by by announcing this, and they'll get 403 00:22:13,440 --> 00:22:17,000 Speaker 1: a quick confirmation. I mean, last time j Pal was 404 00:22:17,400 --> 00:22:21,600 Speaker 1: uh voted in by the Senate it was four to thirteen. 405 00:22:21,800 --> 00:22:24,560 Speaker 1: This is not going to be a heavy lift. So 406 00:22:24,680 --> 00:22:26,520 Speaker 1: I think that that's what they were after, is a 407 00:22:26,600 --> 00:22:29,480 Speaker 1: quick and good win and putting someone in there who 408 00:22:29,480 --> 00:22:31,879 Speaker 1: could start to beat back some of the negative press 409 00:22:31,920 --> 00:22:34,680 Speaker 1: he's getting on inflation. And I think that's the pressure 410 00:22:34,720 --> 00:22:37,280 Speaker 1: that's on Pal and Genieu. It sounds like there are 411 00:22:37,359 --> 00:22:40,359 Speaker 1: enough Republicans to lose more than the Senator Elizabeth Warren. 412 00:22:40,400 --> 00:22:43,359 Speaker 1: Is the president concerned about progressives right now or not 413 00:22:43,359 --> 00:22:46,200 Speaker 1: not on these picks. You know, he he's lost three 414 00:22:46,320 --> 00:22:49,679 Speaker 1: as we can count, um, but he has enough Republican 415 00:22:49,800 --> 00:22:52,879 Speaker 1: support I think to have you know, a certainly not 416 00:22:52,920 --> 00:22:56,440 Speaker 1: a unanimous vote as we know, but certainly Powell will 417 00:22:56,960 --> 00:23:00,000 Speaker 1: will you know, sort of move through very quickly. Um 418 00:23:00,040 --> 00:23:02,639 Speaker 1: as well. Brainard. But again, when you're talking about the 419 00:23:02,760 --> 00:23:05,560 Speaker 1: next three to come, this next shoe that's gonna drop, 420 00:23:05,880 --> 00:23:07,960 Speaker 1: that's going to be a lot more contentious, and I 421 00:23:08,000 --> 00:23:11,439 Speaker 1: think the White House knows that because progressives are going 422 00:23:11,520 --> 00:23:14,560 Speaker 1: to push back and I am looking for a sacrificial 423 00:23:14,640 --> 00:23:16,920 Speaker 1: land when it comes to one of these next three. Well, 424 00:23:16,960 --> 00:23:19,720 Speaker 1: here's what the President said about them today. Beyond Jay 425 00:23:19,800 --> 00:23:22,440 Speaker 1: and Lale, I look forward in the coming weeks and 426 00:23:22,520 --> 00:23:26,200 Speaker 1: nominating additional members of the Frienderal Reserve Board of Governors, 427 00:23:26,320 --> 00:23:30,520 Speaker 1: including a new vice chair for supervision. These individuals will 428 00:23:30,560 --> 00:23:35,480 Speaker 1: help safeguard off financial system. Alongside Jay and lales leadership 429 00:23:36,040 --> 00:23:40,840 Speaker 1: helped us support and continue this historic economic recovery. While 430 00:23:41,240 --> 00:23:46,640 Speaker 1: J and Leo bring continuity stability to FIT, my additions 431 00:23:46,680 --> 00:23:50,399 Speaker 1: will bring new perspectives and new voices. I also pledged 432 00:23:50,440 --> 00:23:53,240 Speaker 1: that my additions will bring new diversity to the FIT. 433 00:23:53,760 --> 00:23:56,840 Speaker 1: Interesting how he played those against each other, Rick, J 434 00:23:57,080 --> 00:24:01,480 Speaker 1: and Leal are equal to continuity, everyone else we got changes. Yeah, 435 00:24:01,520 --> 00:24:03,760 Speaker 1: he's gonna throw some rocks at some windows, it sounds like. 436 00:24:04,840 --> 00:24:06,640 Speaker 1: And what's that going to look like? Though? I mean, 437 00:24:06,720 --> 00:24:11,000 Speaker 1: how how could acknowledging climate change actually change the course 438 00:24:11,040 --> 00:24:14,240 Speaker 1: of the fedroom? I oversimplifying, Oh, I think you're oversimplifying. 439 00:24:14,280 --> 00:24:16,520 Speaker 1: I mean this is gonna be Remember what he said 440 00:24:16,680 --> 00:24:22,200 Speaker 1: in new perspectives, diversity, range of voices. I mean, these 441 00:24:22,240 --> 00:24:25,639 Speaker 1: are sort of democratic talking points for you know, putting 442 00:24:25,680 --> 00:24:29,399 Speaker 1: in uh people who are going to resemble more the 443 00:24:29,440 --> 00:24:34,359 Speaker 1: Democratic Coalition and these two Lale and j as he 444 00:24:34,480 --> 00:24:36,399 Speaker 1: likes to put it. I'm not sure I like the 445 00:24:36,440 --> 00:24:40,639 Speaker 1: idea of using first names for fed uh, but Lale 446 00:24:40,640 --> 00:24:42,800 Speaker 1: and Ja or you know, pretty right down the middle 447 00:24:43,080 --> 00:24:47,800 Speaker 1: of of you know, the population. So you know he 448 00:24:47,880 --> 00:24:50,040 Speaker 1: wants to And by the way, this has been what 449 00:24:50,240 --> 00:24:54,760 Speaker 1: they've done in their administration admirably all along. They apply 450 00:24:54,920 --> 00:24:58,920 Speaker 1: a diversity UH formula to this and an ideological diversity 451 00:24:58,960 --> 00:25:02,480 Speaker 1: formula where you know they're going to be both uh, 452 00:25:02,480 --> 00:25:05,840 Speaker 1: progressive liberals and moderates. And so the moderates are done, 453 00:25:06,080 --> 00:25:08,720 Speaker 1: and so you're gonna see some progressive liberals coming up next. 454 00:25:09,400 --> 00:25:12,520 Speaker 1: Fascinating insights from Rick and Jennie. Why don't we just 455 00:25:12,600 --> 00:25:15,080 Speaker 1: call it the Laylee and Jay Show. It sounds like 456 00:25:15,080 --> 00:25:17,560 Speaker 1: a barning show. Lale and Jay coming up. We're gonna 457 00:25:17,600 --> 00:25:20,960 Speaker 1: hear from them, Leo and Jay and their own words 458 00:25:21,200 --> 00:25:24,679 Speaker 1: in that event today with President Biden. Each made a 459 00:25:24,800 --> 00:25:27,520 Speaker 1: slice of news and we'll see what Rick and Jeanie 460 00:25:27,560 --> 00:25:30,919 Speaker 1: think about that. On the fastest hour in politics. Sound on, 461 00:25:31,240 --> 00:25:37,919 Speaker 1: This is Bloomberg. You're listening to Bloomberg. You sound on 462 00:25:38,359 --> 00:25:44,159 Speaker 1: with Joe Matthew on Bloomberg Radio. And after all, the 463 00:25:44,200 --> 00:25:48,640 Speaker 1: waiting chair j Powell seems to be keeping his job. 464 00:25:48,680 --> 00:25:52,280 Speaker 1: Assuming that the confirmation takes place. The President's picks of 465 00:25:52,320 --> 00:25:54,840 Speaker 1: Powell and Lal Brainerd as Chair and fast Chair of 466 00:25:54,880 --> 00:25:57,440 Speaker 1: the Fed, as I read on the terminal, help him 467 00:25:57,440 --> 00:26:01,800 Speaker 1: avoid a contentious Senate confirmation battle. This should be fairly 468 00:26:01,960 --> 00:26:06,120 Speaker 1: easily done. According to our panel, Genie Chanzano and Rick Davis, 469 00:26:06,119 --> 00:26:09,240 Speaker 1: Bloomberg Politics contributors who are with us for the rest 470 00:26:09,240 --> 00:26:11,320 Speaker 1: of the hour, coming back to talk with us right now. 471 00:26:11,359 --> 00:26:13,159 Speaker 1: We've heard a lot of voices over the course of 472 00:26:13,160 --> 00:26:16,040 Speaker 1: this special hour, and we're not done yet. We actually 473 00:26:16,119 --> 00:26:19,120 Speaker 1: heard from we saw them and heard from both. Well, 474 00:26:19,119 --> 00:26:21,960 Speaker 1: should I just call them j and Lale for continuity? 475 00:26:22,000 --> 00:26:24,800 Speaker 1: This is continuity weak? I mean, after all the talk, 476 00:26:24,840 --> 00:26:26,680 Speaker 1: there they are Joe Biden. I was in the room 477 00:26:27,040 --> 00:26:30,640 Speaker 1: South Court Auditorium, right across the driveway from the West wing. 478 00:26:31,000 --> 00:26:36,239 Speaker 1: They both reached for the same swinging rope as they 479 00:26:36,280 --> 00:26:39,280 Speaker 1: started speaking. Here's j Pal, we know that high inflation 480 00:26:39,320 --> 00:26:42,560 Speaker 1: takes a toll on families, especially those less able to 481 00:26:42,560 --> 00:26:46,520 Speaker 1: meet the higher costs of essentials like food, housing, and transportation. 482 00:26:47,440 --> 00:26:49,640 Speaker 1: And well use our tools both to support the economy 483 00:26:49,640 --> 00:26:52,520 Speaker 1: and a strong labor market and to prevent higher inflation 484 00:26:52,600 --> 00:26:58,159 Speaker 1: from becoming In translation, was it three times sixteen seconds? Then? 485 00:26:58,440 --> 00:27:01,560 Speaker 1: Le brainer. They both spoke very briefly, but went for 486 00:27:01,600 --> 00:27:04,840 Speaker 1: the same work. I'm committed to putting working Americans at 487 00:27:04,840 --> 00:27:08,240 Speaker 1: the center of my work at the Federal Reserve. This 488 00:27:08,320 --> 00:27:11,679 Speaker 1: means getting inflation down at a time when people are 489 00:27:11,720 --> 00:27:14,600 Speaker 1: focused on their jobs and how far their paychecks will go. 490 00:27:14,840 --> 00:27:17,120 Speaker 1: And she went on to speak about other issues, including 491 00:27:17,119 --> 00:27:21,960 Speaker 1: regulations for banks, including acknowledging climate change in the role 492 00:27:22,040 --> 00:27:26,359 Speaker 1: that it is playing in our economy. Genie Chanzano, not 493 00:27:26,400 --> 00:27:28,960 Speaker 1: a coincidence that they both had to get to inflation 494 00:27:29,080 --> 00:27:32,000 Speaker 1: right off the top, No, not a coincidence at all. 495 00:27:32,040 --> 00:27:34,320 Speaker 1: I mean, that is what the White House has focused on. 496 00:27:34,400 --> 00:27:37,119 Speaker 1: That's what they obviously must be focused That's what this 497 00:27:37,160 --> 00:27:39,399 Speaker 1: event was for. That's what this event was for. We're 498 00:27:39,400 --> 00:27:42,639 Speaker 1: going to hear more from the President tomorrow on inflation. 499 00:27:43,040 --> 00:27:45,479 Speaker 1: They are determined to get on top of this, and 500 00:27:45,600 --> 00:27:48,560 Speaker 1: right they should so it is no coincidence. And of 501 00:27:48,600 --> 00:27:52,520 Speaker 1: course also you mentioned they both spoke briefly about the 502 00:27:52,560 --> 00:27:56,120 Speaker 1: issue of climate as well. Yes, they both Uh, they 503 00:27:56,200 --> 00:27:58,920 Speaker 1: both used these terms. Was you know interesting when we 504 00:27:58,960 --> 00:28:01,800 Speaker 1: think about the vocabular lary soup here that that we're 505 00:28:01,800 --> 00:28:05,320 Speaker 1: swimming in in Washington, Rick Davis. Uh, this was to 506 00:28:05,400 --> 00:28:08,400 Speaker 1: put up a show, right, we're hawks on inflation. Maybe 507 00:28:08,400 --> 00:28:11,840 Speaker 1: you should use the word hawk, but we're dealing with inflation. Oh. Also, 508 00:28:11,920 --> 00:28:14,960 Speaker 1: this climate thing is real, We're going to do that too. Yeah, 509 00:28:14,960 --> 00:28:20,200 Speaker 1: this is interesting talking points for an independent fed Uh. 510 00:28:20,240 --> 00:28:23,960 Speaker 1: You know, I I thought Jerome pal Uh testified to 511 00:28:24,040 --> 00:28:28,440 Speaker 1: Congress repeatedly that he thought inflation was transient. Remember Grin 512 00:28:28,480 --> 00:28:31,760 Speaker 1: and Barrett Public. Yeah, yeah, going away. That's why I 513 00:28:31,800 --> 00:28:34,280 Speaker 1: had to ask Senator Warner and Brian des about that. 514 00:28:34,320 --> 00:28:37,920 Speaker 1: If has your opinion evolved on the transitory idea. You've 515 00:28:37,920 --> 00:28:40,520 Speaker 1: noticed we don't hear that word a lot more. Rick, Well, 516 00:28:40,560 --> 00:28:44,480 Speaker 1: it's because one and for consumers have cited inflation as 517 00:28:44,560 --> 00:28:48,200 Speaker 1: impact on their living standard. That is why this administration 518 00:28:48,280 --> 00:28:51,719 Speaker 1: is focused on this. Rising home prices, vehicles, durable goods, 519 00:28:52,160 --> 00:28:56,400 Speaker 1: these are all at a fifty year high. Uh, And 520 00:28:56,600 --> 00:28:59,720 Speaker 1: so I think this administration finally got the memo. After 521 00:29:00,440 --> 00:29:04,200 Speaker 1: taking an incredible hit on his popularity, President Biden has 522 00:29:04,280 --> 00:29:07,280 Speaker 1: realized he is now the inflation president and if he 523 00:29:07,320 --> 00:29:09,880 Speaker 1: doesn't do something about it, midterms are gonna look awful 524 00:29:09,880 --> 00:29:13,080 Speaker 1: bad for him. Jeanne was interesting to hear the President straddle, 525 00:29:13,120 --> 00:29:15,640 Speaker 1: and he's been doing this more lately, straddling the line 526 00:29:15,640 --> 00:29:18,440 Speaker 1: of hey, look, we're still coming out of COVID, right. 527 00:29:18,440 --> 00:29:21,560 Speaker 1: He talked about the risks that we still face, the 528 00:29:21,600 --> 00:29:24,479 Speaker 1: progress that still must be had, while also trying to 529 00:29:24,480 --> 00:29:27,600 Speaker 1: take a victory lap for polling us back from the 530 00:29:27,640 --> 00:29:30,240 Speaker 1: brink here coming back from a pandemic. He talked about 531 00:29:30,240 --> 00:29:34,480 Speaker 1: the strongest job growth and economic growth in history, in 532 00:29:34,560 --> 00:29:39,320 Speaker 1: the history of presidents. How do you have both? That's 533 00:29:39,400 --> 00:29:41,680 Speaker 1: going to be the challenge for this White House and 534 00:29:41,760 --> 00:29:44,440 Speaker 1: quite frankly for the Fed. I mean, you know, one 535 00:29:44,520 --> 00:29:48,080 Speaker 1: of the things that the administration has been so focused 536 00:29:48,120 --> 00:29:51,960 Speaker 1: on is saying that they are addressing inflation, but always 537 00:29:52,000 --> 00:29:54,160 Speaker 1: going back to the fact that we can't forget we 538 00:29:54,200 --> 00:29:56,760 Speaker 1: are just coming out of a pandemic and that is 539 00:29:56,800 --> 00:29:59,800 Speaker 1: the cause of the inflation, and that they are going 540 00:29:59,840 --> 00:30:03,120 Speaker 1: to be stabilizing it. And at the same time, they're 541 00:30:03,160 --> 00:30:06,440 Speaker 1: going to be pushing for maximum employment. And the question, 542 00:30:06,480 --> 00:30:09,160 Speaker 1: of course is can you do both of those things 543 00:30:09,240 --> 00:30:11,920 Speaker 1: and can you keep interest rates low? It seems to 544 00:30:11,960 --> 00:30:15,560 Speaker 1: me he believes profoundly that J. Powell is going to 545 00:30:15,600 --> 00:30:17,720 Speaker 1: be able to do both of those things. I don't 546 00:30:17,760 --> 00:30:20,640 Speaker 1: know if other people are as convinced. And on this 547 00:30:20,720 --> 00:30:25,400 Speaker 1: issue of independence, which he keeps stressing, let's not forget that. 548 00:30:25,680 --> 00:30:30,320 Speaker 1: You know, he is remaking the FED probably and more 549 00:30:30,400 --> 00:30:34,320 Speaker 1: than you know any president in recent history at least 550 00:30:34,520 --> 00:30:36,400 Speaker 1: has a chance to put his stamp on it, and 551 00:30:36,480 --> 00:30:40,040 Speaker 1: has promised to remake it in an image of strong 552 00:30:40,120 --> 00:30:44,520 Speaker 1: regulation focusing on climate. So independence, he says. And yet 553 00:30:44,560 --> 00:30:48,160 Speaker 1: what happens next, may you know, put a little crink 554 00:30:48,200 --> 00:30:49,960 Speaker 1: in that armor. Yeah. I want to ask you both 555 00:30:50,000 --> 00:30:52,480 Speaker 1: about how this may or may not plan in play 556 00:30:52,560 --> 00:30:57,400 Speaker 1: into the reconciliation bill, which you know, big deal, finally 557 00:30:57,400 --> 00:30:59,320 Speaker 1: got a vote last week past the House, now going 558 00:30:59,320 --> 00:31:01,560 Speaker 1: to the Senate, where will likely undergo a lot of changes, 559 00:31:01,880 --> 00:31:04,400 Speaker 1: and that creates a lot of question marks. There's gonna 560 00:31:04,440 --> 00:31:07,160 Speaker 1: need to be more bargaining. Rick Davis. Does President Biden 561 00:31:07,280 --> 00:31:11,880 Speaker 1: hold these remaining seats as leverage over progressives? Elizabeth Warren 562 00:31:11,960 --> 00:31:14,719 Speaker 1: Jeff Merkley have already said there are no vote Sheldon 563 00:31:14,760 --> 00:31:17,160 Speaker 1: White House is an issue. Is it going to come 564 00:31:17,200 --> 00:31:19,440 Speaker 1: down to that kind of hand to hand I won't 565 00:31:19,480 --> 00:31:23,400 Speaker 1: say combat, but maybe negotiations. Yeah, this is the six 566 00:31:23,480 --> 00:31:27,520 Speaker 1: degrees of separation for the for the for the budget bill, 567 00:31:27,640 --> 00:31:30,640 Speaker 1: and I think that's exactly what he'll do. He's he's 568 00:31:30,680 --> 00:31:33,560 Speaker 1: withheld these uh for a lot of different reasons, probably, 569 00:31:33,560 --> 00:31:35,760 Speaker 1: but not least of which because you know, he's going 570 00:31:35,800 --> 00:31:38,920 Speaker 1: to make sure that if he picks progressives, he's going 571 00:31:38,960 --> 00:31:41,840 Speaker 1: to get their support for what is ultimately going to 572 00:31:41,920 --> 00:31:45,640 Speaker 1: have to happen, which is a significant rewrite of the 573 00:31:45,680 --> 00:31:50,160 Speaker 1: House Bill by Joe Manchin. And when that happens, they're 574 00:31:50,160 --> 00:31:53,560 Speaker 1: going to be a lot of very angry liberal Democratic 575 00:31:53,640 --> 00:31:56,720 Speaker 1: senators and they're gonna need something. And this is one 576 00:31:56,760 --> 00:31:58,440 Speaker 1: of the few things that he can put on the 577 00:31:58,480 --> 00:32:01,920 Speaker 1: table immediately to get them to settle down and walk 578 00:32:02,000 --> 00:32:04,920 Speaker 1: the straight line. But you referred to them I believe 579 00:32:05,000 --> 00:32:09,240 Speaker 1: Jeanie as sacrificial. That means this doesn't end well for progressives. 580 00:32:09,960 --> 00:32:12,120 Speaker 1: I think there's a chance that at least one of 581 00:32:12,160 --> 00:32:14,920 Speaker 1: the nominations he puts up of these three is going 582 00:32:15,000 --> 00:32:18,760 Speaker 1: to be an appeal to progressives, and they simply won't 583 00:32:18,760 --> 00:32:21,120 Speaker 1: be able to push it through, and the White House 584 00:32:21,160 --> 00:32:24,760 Speaker 1: will simply say they tried and go back to somebody, um, 585 00:32:24,800 --> 00:32:27,520 Speaker 1: you know, less in keeping with the liberal wing of 586 00:32:27,600 --> 00:32:30,640 Speaker 1: his party. And you know, the President said um in 587 00:32:30,680 --> 00:32:33,080 Speaker 1: the last couple of days that he was going to 588 00:32:33,120 --> 00:32:36,200 Speaker 1: sign this bill back better bill, and he is going 589 00:32:36,240 --> 00:32:39,160 Speaker 1: to sign it. It sounded to me like regardless of 590 00:32:39,200 --> 00:32:41,800 Speaker 1: whatever change his mansion makes to it. I think the 591 00:32:41,880 --> 00:32:45,200 Speaker 1: question now is can he hold not just the progressives 592 00:32:45,200 --> 00:32:48,200 Speaker 1: in the Senate, but Kenny hold those progressives in the House. 593 00:32:48,320 --> 00:32:50,880 Speaker 1: So he's got a long way to go on that, 594 00:32:51,120 --> 00:32:53,880 Speaker 1: But I think he is determined to sign what comes through, 595 00:32:54,000 --> 00:32:56,280 Speaker 1: and he's gonna, you know, bow to Joe mention. He 596 00:32:56,320 --> 00:32:58,920 Speaker 1: has no choice on that. Rick. This whole FED process 597 00:32:59,080 --> 00:33:02,440 Speaker 1: as captive to the markets, the financial markets for good reason. 598 00:33:03,320 --> 00:33:06,520 Speaker 1: Everyday Americans don't follow the Fed. Maybe they might know 599 00:33:06,560 --> 00:33:10,120 Speaker 1: who the chair is. Maybe, Uh does this play into 600 00:33:10,120 --> 00:33:14,440 Speaker 1: mid terms at least in terms of showing the wheels turning, 601 00:33:15,000 --> 00:33:19,120 Speaker 1: things happening, open seats being filled. You know, Look, the 602 00:33:19,160 --> 00:33:22,200 Speaker 1: only way this plays in the mid terms, Joe is 603 00:33:22,240 --> 00:33:25,640 Speaker 1: if inflation comes down, you know, not nobody will be 604 00:33:25,680 --> 00:33:29,200 Speaker 1: able to say that Jay is the Chairman of the 605 00:33:29,200 --> 00:33:32,520 Speaker 1: Federal Reserve on election day. But if Jay does his 606 00:33:32,720 --> 00:33:36,160 Speaker 1: job Biden wants him to do, and inflation goes from 607 00:33:36,320 --> 00:33:38,920 Speaker 1: six and a half percent in October to something in 608 00:33:38,960 --> 00:33:43,080 Speaker 1: the lower single digits, then than yes, that will actually 609 00:33:43,080 --> 00:33:46,560 Speaker 1: resonate with voters. But it takes some time for voters 610 00:33:46,600 --> 00:33:50,600 Speaker 1: to feel the improvement in the economy. Some posters tell 611 00:33:50,600 --> 00:33:52,760 Speaker 1: me as much as six months. So if you really 612 00:33:52,840 --> 00:33:55,480 Speaker 1: draw that back there down to the next six months 613 00:33:55,480 --> 00:33:59,480 Speaker 1: to show improvement on inflation and the economy and jobs 614 00:34:00,200 --> 00:34:02,760 Speaker 1: in order to take advantage of it the midterms and genie. 615 00:34:02,760 --> 00:34:05,840 Speaker 1: In that time, Republicans are likely controlling the narrative over 616 00:34:05,920 --> 00:34:08,560 Speaker 1: high prices. Right, can the President stick the landing or 617 00:34:08,800 --> 00:34:12,080 Speaker 1: Democrats in general with that short of a time span, 618 00:34:12,600 --> 00:34:15,200 Speaker 1: It's gonna be very difficult. Historically, it's going to be 619 00:34:15,200 --> 00:34:17,680 Speaker 1: difficult for them. It's going to be difficult because of 620 00:34:17,719 --> 00:34:19,960 Speaker 1: the redrawing of these districts, and it's going to be 621 00:34:20,120 --> 00:34:23,399 Speaker 1: most difficult because of inflation. You know, the White House 622 00:34:23,480 --> 00:34:25,440 Speaker 1: keeps using that word, or they stopped a little bit 623 00:34:25,480 --> 00:34:29,239 Speaker 1: of transitory and yes, economically, it may you know, inflation 624 00:34:29,280 --> 00:34:32,759 Speaker 1: may go down, but people remember it. It's the wrong 625 00:34:32,800 --> 00:34:35,319 Speaker 1: point to make. Right. It could be transitory, but that's 626 00:34:35,320 --> 00:34:37,720 Speaker 1: not the boy, that's not the point, because we're paying 627 00:34:37,800 --> 00:34:39,680 Speaker 1: every time we go to the store, we go fill 628 00:34:39,719 --> 00:34:42,360 Speaker 1: up our guest tank. People know this. So it's the 629 00:34:42,440 --> 00:34:45,200 Speaker 1: kind of thing that is politically and the President knows 630 00:34:45,280 --> 00:34:48,600 Speaker 1: this is politically incredibly damaging and what was already going 631 00:34:48,640 --> 00:34:51,520 Speaker 1: to be a tough mid term for Democrats another so 632 00:34:51,560 --> 00:34:54,440 Speaker 1: many serious conversations today, and thank god Rick and Genie 633 00:34:54,480 --> 00:34:57,040 Speaker 1: are here to help us through it. On Sound On. 634 00:34:57,680 --> 00:35:00,000 Speaker 1: But I have to admit, after spending some time today 635 00:35:00,000 --> 00:35:01,719 Speaker 1: at the White House, in the midst of all the 636 00:35:01,760 --> 00:35:06,960 Speaker 1: wrangling over the fed, over the open seats, whether it's transitory, 637 00:35:07,040 --> 00:35:11,759 Speaker 1: do we call it inflation? You know what happened. The 638 00:35:11,840 --> 00:35:18,720 Speaker 1: tree showed up eighteen and a half foot Fraser fur 639 00:35:19,239 --> 00:35:23,640 Speaker 1: from North Carolina. I'm told North Carolina is the spot 640 00:35:23,640 --> 00:35:26,480 Speaker 1: for Christmas trees at the White House. It'll end up 641 00:35:26,520 --> 00:35:28,680 Speaker 1: in the Blue Room. Maybe they're pulling it in there 642 00:35:28,680 --> 00:35:32,280 Speaker 1: already following the first lady's inspection. That's what happens today 643 00:35:32,719 --> 00:35:35,600 Speaker 1: here they come now as the four piece band was playing. 644 00:35:36,360 --> 00:35:38,359 Speaker 1: The tree was ferried up the driveway to the north 645 00:35:38,400 --> 00:35:44,400 Speaker 1: portico a green carriage pulled by two draft horses. Clydesdale's 646 00:35:44,680 --> 00:35:48,280 Speaker 1: three gentlemen in black pork pie hats and matching masks. 647 00:35:51,840 --> 00:35:54,879 Speaker 1: Dr Biden, the first lady wearing a cranberry colored coat 648 00:35:54,920 --> 00:35:57,040 Speaker 1: and white dress. As I read from the pool report 649 00:35:57,080 --> 00:36:00,800 Speaker 1: here inspected the tree was greatly Ease, who removed a 650 00:36:00,880 --> 00:36:03,200 Speaker 1: sprig from the tree and handed it to Bo Biden, 651 00:36:03,480 --> 00:36:06,759 Speaker 1: her young grandson, before in fighting a service family to 652 00:36:06,840 --> 00:36:12,400 Speaker 1: pet the horses. Rick and Genie. This is something we 653 00:36:12,440 --> 00:36:16,440 Speaker 1: need to remember, right, Humanity lives in Washington? Am I wrong? Rick? 654 00:36:17,480 --> 00:36:21,799 Speaker 1: You're right on, Boss. I tried, Genie. Come on, give 655 00:36:21,840 --> 00:36:24,520 Speaker 1: me a little holiday cheer here or something. It was lovely. 656 00:36:24,560 --> 00:36:26,680 Speaker 1: I hope Peanut Butter and Jelly the turkeys were there 657 00:36:26,719 --> 00:36:30,000 Speaker 1: to celebrate. That's the spirit. Meet you back here tomorrow. 658 00:36:30,040 --> 00:36:32,040 Speaker 1: I'm Joe Matthew. This is Bloomberg