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, Cockley 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 --> 00:00:25,080 Speaker 1: you get your podcasts, or watch us live on YouTube. 6 00:00:25,560 --> 00:00:28,840 Speaker 2: I'm Kaylee Lyones alongside Tyler Kendall in Washington as we 7 00:00:28,880 --> 00:00:31,800 Speaker 2: assess the words of Mary Daily and how they may 8 00:00:32,479 --> 00:00:35,120 Speaker 2: resonate with the President of the United States, who is pushing, 9 00:00:35,159 --> 00:00:37,320 Speaker 2: of course, for the Fed shair Jerome Powell and the 10 00:00:37,320 --> 00:00:40,560 Speaker 2: rest of the FOMC to lower rates. Mary Daily saying 11 00:00:40,600 --> 00:00:43,560 Speaker 2: Tyler that she sees the economy and policy as both 12 00:00:43,640 --> 00:00:46,640 Speaker 2: being in a good place and suggests that other things 13 00:00:46,720 --> 00:00:49,280 Speaker 2: like the commentary from the President are not distracting the 14 00:00:49,320 --> 00:00:51,040 Speaker 2: FED from its core missions right. 15 00:00:51,159 --> 00:00:53,199 Speaker 3: She added that two rate cuts this year is a 16 00:00:53,240 --> 00:00:56,440 Speaker 3: reasonable outlook, and at the same time, we can't wait 17 00:00:56,840 --> 00:00:59,880 Speaker 3: forever on rates, of course, probably something that the President 18 00:01:00,120 --> 00:01:02,360 Speaker 3: is looking at too. We saw him post on truth 19 00:01:02,400 --> 00:01:05,240 Speaker 3: Social earlier today after we got that retail sales data 20 00:01:05,280 --> 00:01:07,960 Speaker 3: again calling Jerome Powell too late, which is where we 21 00:01:08,000 --> 00:01:11,200 Speaker 3: want to pick up our conversation and bring in Congressman 22 00:01:11,280 --> 00:01:14,880 Speaker 3: Mike Flood from Capitol Hill. He's a Republican representing Nebraska's 23 00:01:15,160 --> 00:01:17,720 Speaker 3: first district. He's a member of the House Financial Services 24 00:01:17,720 --> 00:01:20,160 Speaker 3: Committee as well as the vice chair of the Republican 25 00:01:20,200 --> 00:01:22,840 Speaker 3: Main Street Partnership. Congressman, it's good to see you, and 26 00:01:22,880 --> 00:01:26,000 Speaker 3: thanks so much for joining Bloomberg TV and Radio. This 27 00:01:26,080 --> 00:01:27,840 Speaker 3: is where we want to start. You have an oversight 28 00:01:27,920 --> 00:01:30,800 Speaker 3: role of the FED as a member of House Financial Services. 29 00:01:30,920 --> 00:01:33,000 Speaker 3: Can we just get your initial thoughts off the top here? 30 00:01:33,240 --> 00:01:35,880 Speaker 3: Do you think that the administration's rhetoric as it rams 31 00:01:35,959 --> 00:01:39,120 Speaker 3: up the pressure on Jerome Powell good undermine the credibility 32 00:01:39,200 --> 00:01:40,120 Speaker 3: of the Federal Reserve? 33 00:01:41,120 --> 00:01:42,000 Speaker 4: Well, let's start with this. 34 00:01:42,240 --> 00:01:45,680 Speaker 5: I really believe in having an independent central bank. I mean, 35 00:01:45,720 --> 00:01:48,640 Speaker 5: that's core to our system. The system has served us well. 36 00:01:48,720 --> 00:01:52,080 Speaker 5: We are the world's financial leader. Our systems are the best, 37 00:01:52,240 --> 00:01:55,240 Speaker 5: our courts are the best. We have stability that other 38 00:01:55,240 --> 00:01:57,720 Speaker 5: countries dream of, and a lot of it because of 39 00:01:57,760 --> 00:02:01,080 Speaker 5: an independent central bank. But that doesn't mean that Jerome 40 00:02:01,120 --> 00:02:03,000 Speaker 5: Powell is exempt from criticism. 41 00:02:03,640 --> 00:02:05,600 Speaker 4: In two thousand and eight, Congress. 42 00:02:05,200 --> 00:02:09,120 Speaker 5: Set up basically an Oversight Committee on Monetary Policy. I 43 00:02:09,280 --> 00:02:13,239 Speaker 5: sit on the Monetary Policy Committee today and there's going 44 00:02:13,280 --> 00:02:15,560 Speaker 5: to be an exchange of ideas. There hasn't been a 45 00:02:15,560 --> 00:02:18,240 Speaker 5: president in the last forty years that has ever not 46 00:02:18,360 --> 00:02:21,600 Speaker 5: disagreed with the chairman of the Federal Reserve. 47 00:02:21,720 --> 00:02:25,919 Speaker 4: That's how this works now. The President reaffirmed yesterday that no, 48 00:02:26,160 --> 00:02:27,840 Speaker 4: he was not going to fire Jerome Palell. 49 00:02:27,880 --> 00:02:31,440 Speaker 5: He has his opportunity next spring, and the American people 50 00:02:31,440 --> 00:02:35,480 Speaker 5: buy and through him will appoint somebody. But I think 51 00:02:35,840 --> 00:02:38,920 Speaker 5: just the stock market report you got there, Americans are 52 00:02:38,960 --> 00:02:41,440 Speaker 5: optimistic about where this economy is going, and you can 53 00:02:41,520 --> 00:02:43,080 Speaker 5: see it in our stock market. 54 00:02:44,280 --> 00:02:47,000 Speaker 2: Well, Congressman, President Trump may have suggested yesterday it's not 55 00:02:47,000 --> 00:02:49,160 Speaker 2: his intention right now to fire the chairman. He said 56 00:02:49,160 --> 00:02:51,760 Speaker 2: it highly unlikely, but he did suggest the chair still 57 00:02:52,520 --> 00:02:55,560 Speaker 2: may need to go if there's evidence of fraud something 58 00:02:55,600 --> 00:03:00,000 Speaker 2: that THEFA chair Bill Pulty is suggesting around the renovations 59 00:03:00,040 --> 00:03:03,200 Speaker 2: of the Federal Reserve building here in Washington. He's pushing 60 00:03:03,240 --> 00:03:06,639 Speaker 2: Congress for an investigation into that. Would you be supportive 61 00:03:06,760 --> 00:03:08,520 Speaker 2: of such an investigation. 62 00:03:08,600 --> 00:03:10,400 Speaker 5: Well, I think there's a number of different ways that 63 00:03:10,480 --> 00:03:13,160 Speaker 5: it can be investigated outside of Congress. Certainly, we won't 64 00:03:14,240 --> 00:03:17,200 Speaker 5: walk away from our role in oversight. I simply don't 65 00:03:17,200 --> 00:03:20,640 Speaker 5: know enough about this building project. I know that Jerome 66 00:03:20,680 --> 00:03:23,440 Speaker 5: Palace is the chairman of the Federal Reserve. It's an 67 00:03:23,480 --> 00:03:25,960 Speaker 5: independent central bank. It's going to remain that way. If 68 00:03:26,000 --> 00:03:29,600 Speaker 5: there are these allegations, and if they are substantiated, then 69 00:03:29,639 --> 00:03:32,160 Speaker 5: of course it will be investigated in the due course. 70 00:03:32,639 --> 00:03:34,240 Speaker 4: But I think we have to keep our eye on 71 00:03:34,320 --> 00:03:34,720 Speaker 4: the ball. 72 00:03:35,000 --> 00:03:37,400 Speaker 5: The ball is the American economy. The ball is in 73 00:03:37,440 --> 00:03:40,200 Speaker 5: the ri should be on the stock market. Things are 74 00:03:40,240 --> 00:03:43,760 Speaker 5: going well, and if we can land these planes in Washington, 75 00:03:43,800 --> 00:03:47,920 Speaker 5: with the Big Bill, obviously and the successive legislative priorities 76 00:03:47,920 --> 00:03:50,480 Speaker 5: we have, we're going to end this year and set 77 00:03:50,520 --> 00:03:54,560 Speaker 5: America up for explosive growth in twenty twenty six. 78 00:03:56,280 --> 00:03:57,920 Speaker 3: Well, Congressman, I want to pull on some of your 79 00:03:57,960 --> 00:04:01,800 Speaker 3: expertise here because you do lead the subcommittee on Housing. 80 00:04:01,880 --> 00:04:04,680 Speaker 3: Cayley mentioned we had Bill Polty on the show yesterday 81 00:04:04,720 --> 00:04:06,800 Speaker 3: and he's blaming the Jerome Powell when it comes to 82 00:04:06,800 --> 00:04:08,760 Speaker 3: mortgage rates. But we also know that the Fed can't 83 00:04:08,760 --> 00:04:11,960 Speaker 3: control things like supply constraints. I'm wondering what you make 84 00:04:11,960 --> 00:04:14,640 Speaker 3: of the administration's argument on this one. Is this a 85 00:04:14,680 --> 00:04:17,440 Speaker 3: sustainable argument? Down the line when it does come to 86 00:04:17,480 --> 00:04:19,080 Speaker 3: the criticism of the FED chair. 87 00:04:20,040 --> 00:04:22,640 Speaker 5: Well, let's talk about housing in America. We are in 88 00:04:22,680 --> 00:04:25,239 Speaker 5: a bad spot right now for a number of reasons. 89 00:04:25,240 --> 00:04:29,520 Speaker 5: We are five million units short. That's what the realtors say, 90 00:04:29,520 --> 00:04:31,839 Speaker 5: that's what the homebuilders say. So we do have a 91 00:04:31,839 --> 00:04:35,080 Speaker 5: supply issue. At the same time, because of weather peril 92 00:04:35,400 --> 00:04:40,040 Speaker 5: and third party litigation, we have property and casually in 93 00:04:40,040 --> 00:04:44,000 Speaker 5: insurance skyrocketing. So now for a lot of homeowners, their 94 00:04:44,040 --> 00:04:47,840 Speaker 5: property taxes plus their insurance premiums are more than their 95 00:04:47,880 --> 00:04:50,560 Speaker 5: principle and interest. When I bought a home back in 96 00:04:50,680 --> 00:04:52,720 Speaker 5: I don't know, two thousand and four, for the first time, 97 00:04:53,080 --> 00:04:55,760 Speaker 5: my interest rate was eight point five percent. We've seen 98 00:04:55,800 --> 00:04:58,880 Speaker 5: this before. We want it to go down. Everybody wants 99 00:04:58,920 --> 00:05:00,000 Speaker 5: to have low interest rates. 100 00:05:00,080 --> 00:05:00,560 Speaker 4: I get it. 101 00:05:00,839 --> 00:05:04,200 Speaker 5: But to say that housing is in peril because of 102 00:05:04,240 --> 00:05:08,280 Speaker 5: the interest rate, I think that's a really narrow perspective 103 00:05:08,360 --> 00:05:11,400 Speaker 5: because there are so many other issues out there, most 104 00:05:11,440 --> 00:05:12,560 Speaker 5: notably supply. 105 00:05:14,920 --> 00:05:17,200 Speaker 2: Well, it's great to have your insight on that, Congressman, 106 00:05:17,240 --> 00:05:20,040 Speaker 2: given your purview on that subcommittee, I want to talk 107 00:05:20,360 --> 00:05:23,560 Speaker 2: about something else that falls obviously under the broader jurisdiction 108 00:05:23,640 --> 00:05:27,159 Speaker 2: of financial services, where we saw the initiation of some 109 00:05:27,240 --> 00:05:29,520 Speaker 2: of the crypto bills that we're expecting the House to 110 00:05:29,640 --> 00:05:32,600 Speaker 2: vote on for final passage just hours from now. It's 111 00:05:32,640 --> 00:05:34,479 Speaker 2: been hard fought to get to this point. I thought 112 00:05:34,480 --> 00:05:38,680 Speaker 2: that role vote yesterday might stay open forever. Congressman, the 113 00:05:39,040 --> 00:05:41,080 Speaker 2: votes do seem to be there for the Genius Act, 114 00:05:41,080 --> 00:05:43,039 Speaker 2: which of course was already passed by the Senate. But 115 00:05:43,080 --> 00:05:44,880 Speaker 2: for the Clarity Act, even if you can get the 116 00:05:44,960 --> 00:05:48,640 Speaker 2: votes today, what future do you think that realistically has 117 00:05:48,640 --> 00:05:51,920 Speaker 2: in the Senate in terms of bipartisan cooperation. What are 118 00:05:51,960 --> 00:05:54,120 Speaker 2: you hearing from your colleagues in the other chamber. 119 00:05:55,160 --> 00:05:57,040 Speaker 5: Well, first of all, what I hear from my constituents 120 00:05:57,040 --> 00:05:58,719 Speaker 5: in Nebraska all the time is they want to see 121 00:05:58,760 --> 00:06:01,440 Speaker 5: us work in a bipartisan way to deliver results for 122 00:06:01,480 --> 00:06:03,240 Speaker 5: the American people and to solve problems. 123 00:06:03,440 --> 00:06:05,440 Speaker 4: I bet you when the Clarity Act. 124 00:06:05,279 --> 00:06:07,880 Speaker 5: Is presented to the House of Representatives later today, there 125 00:06:07,880 --> 00:06:12,280 Speaker 5: will be at least or maybe as many as seventy Democrats. 126 00:06:12,640 --> 00:06:13,680 Speaker 4: If we can send. 127 00:06:13,480 --> 00:06:17,000 Speaker 5: Clarity over to the House with seventy Democratic votes plus 128 00:06:17,040 --> 00:06:19,719 Speaker 5: all of the Republicans, I think that makes an excellent 129 00:06:19,760 --> 00:06:21,839 Speaker 5: case for getting the sixty votes in the US Senate, 130 00:06:22,080 --> 00:06:25,160 Speaker 5: it sends it to President Trump's desk, and America can 131 00:06:25,160 --> 00:06:30,120 Speaker 5: take its rightful spot at the very epicenter of stable 132 00:06:30,200 --> 00:06:33,240 Speaker 5: coins and digital assets and market structure. All of this 133 00:06:33,520 --> 00:06:36,560 Speaker 5: has been in works for several years, but for some 134 00:06:36,600 --> 00:06:39,240 Speaker 5: complications in the last couple of months, we could have 135 00:06:39,440 --> 00:06:43,120 Speaker 5: even more than seventy votes in the House among Democrats. 136 00:06:43,200 --> 00:06:46,640 Speaker 5: So we're on a good trajectory. I know that if 137 00:06:46,640 --> 00:06:50,080 Speaker 5: you're watching the debate you're only seeing the naysayers on 138 00:06:50,120 --> 00:06:52,680 Speaker 5: the Democratic side, but trust me, there are a lot 139 00:06:52,720 --> 00:06:54,320 Speaker 5: of people, and one person I. 140 00:06:54,279 --> 00:06:57,400 Speaker 4: Encourage you to really watch her vote is former Speaker 141 00:06:57,800 --> 00:06:58,640 Speaker 4: Nancy Pelosi. 142 00:06:58,760 --> 00:07:02,320 Speaker 5: I'm told even she sees the value in the Clarity 143 00:07:02,360 --> 00:07:03,960 Speaker 5: Act and sending that over to the Senate. 144 00:07:04,040 --> 00:07:06,320 Speaker 4: So we're at a pretty good path over here. It 145 00:07:06,360 --> 00:07:07,240 Speaker 4: never looks pretty. 146 00:07:07,400 --> 00:07:09,520 Speaker 5: It's always made for TV when you watch the Floor 147 00:07:09,520 --> 00:07:11,440 Speaker 5: of the House. But it's going to get done and 148 00:07:11,440 --> 00:07:12,880 Speaker 5: we're going to have it by this weekend. 149 00:07:14,280 --> 00:07:17,000 Speaker 3: Well, Congressman, we know Wall Street is watching this debate 150 00:07:17,040 --> 00:07:19,360 Speaker 3: and stable coins have actually made their way into the discussion. 151 00:07:19,400 --> 00:07:22,000 Speaker 3: On a series of recent earning earnings calls, we had 152 00:07:22,080 --> 00:07:25,360 Speaker 3: JP Morgan, Bank of America City group describing the upstart 153 00:07:25,400 --> 00:07:27,640 Speaker 3: of the digital dollar as a potential threat to the 154 00:07:27,640 --> 00:07:31,120 Speaker 3: banking industri's grip on payments and signaled that they're prepared 155 00:07:31,160 --> 00:07:34,080 Speaker 3: to respond. I'm wondering what reassurances that you could give 156 00:07:34,200 --> 00:07:36,400 Speaker 3: to banks that perhaps there's nothing to fear here. 157 00:07:37,440 --> 00:07:40,240 Speaker 5: Well, we worked with the American Bankers' Association throughout this 158 00:07:40,360 --> 00:07:44,000 Speaker 5: entire process. I was actually, as a state legislator, made 159 00:07:44,040 --> 00:07:46,440 Speaker 5: Nebraska the second state in the nation to allow state 160 00:07:46,600 --> 00:07:49,600 Speaker 5: chartered banks to custody digital assets. 161 00:07:49,800 --> 00:07:51,640 Speaker 4: Listen, our stable coins. 162 00:07:51,360 --> 00:07:54,320 Speaker 5: Only work, in my opinion, they only work around the 163 00:07:54,360 --> 00:07:57,640 Speaker 5: world if most of them are custody and American banks. 164 00:07:58,000 --> 00:08:02,080 Speaker 5: Where one stable coin equals one dollar in an FDI's 165 00:08:02,760 --> 00:08:05,840 Speaker 5: insured bank, that gives me comfort that we are going 166 00:08:05,880 --> 00:08:08,000 Speaker 5: to be the world's leader in stable coins. We have 167 00:08:08,040 --> 00:08:10,800 Speaker 5: to make sure that banks are intricately involved in this. 168 00:08:10,800 --> 00:08:12,760 Speaker 5: This is the business that they bid in for hundreds 169 00:08:12,800 --> 00:08:15,360 Speaker 5: of years in our country. I have a strong interest 170 00:08:15,400 --> 00:08:17,920 Speaker 5: in making sure it works in sync with a banking community. 171 00:08:18,120 --> 00:08:20,440 Speaker 5: And as it relates to these Denovo charters and some 172 00:08:20,480 --> 00:08:22,560 Speaker 5: of the things that you see people come forward with, 173 00:08:22,800 --> 00:08:24,160 Speaker 5: it all requires capital. 174 00:08:24,200 --> 00:08:26,640 Speaker 4: What do banks have? Banks have capital? Banks understand how 175 00:08:26,640 --> 00:08:27,080 Speaker 4: this works. 176 00:08:27,200 --> 00:08:30,800 Speaker 5: They're regulated, they have all sorts of different safeguards. 177 00:08:30,840 --> 00:08:33,160 Speaker 4: They are very aware. 178 00:08:32,840 --> 00:08:36,800 Speaker 5: Of know your customer and all the consumer protections. We 179 00:08:36,920 --> 00:08:40,200 Speaker 5: bet big on stable coins if banks engage and banks 180 00:08:40,240 --> 00:08:41,720 Speaker 5: take the lead, and that's what I want. 181 00:08:43,679 --> 00:08:46,560 Speaker 2: Congressman. I'd like to also ask you about Recisions, as 182 00:08:46,600 --> 00:08:49,240 Speaker 2: the Senate, of course, was able to pass a nine 183 00:08:49,320 --> 00:08:52,720 Speaker 2: billion dollars slightly shrunk recisions package with funding cuts to 184 00:08:52,760 --> 00:08:55,720 Speaker 2: PBS and NPR as well as USAID last night. I 185 00:08:55,760 --> 00:08:58,240 Speaker 2: assume you and your colleagues will be taking that up 186 00:08:58,280 --> 00:09:01,559 Speaker 2: either this evening or tomorrow in the House. But Democrats 187 00:09:01,559 --> 00:09:04,880 Speaker 2: are suggesting that this has complicated an effort to be 188 00:09:04,960 --> 00:09:08,440 Speaker 2: bipartisan in the appropriations process as we approach the end 189 00:09:08,480 --> 00:09:11,280 Speaker 2: of the fiscal year in September. As a result of 190 00:09:11,360 --> 00:09:16,559 Speaker 2: passage of this recision's package, Sir, has the aughts of 191 00:09:16,600 --> 00:09:18,480 Speaker 2: a government shutdown increased? 192 00:09:20,200 --> 00:09:22,800 Speaker 5: Well, I don't think Recisions has anything to do with it. 193 00:09:22,840 --> 00:09:26,720 Speaker 5: Look at the Continuing Resolution we passed in March. Senate 194 00:09:26,760 --> 00:09:29,400 Speaker 5: Minority Leader Chuck Schumer. He did the right thing. He 195 00:09:29,640 --> 00:09:32,160 Speaker 5: made sure the Senate funded the government. And what happened 196 00:09:32,200 --> 00:09:33,960 Speaker 5: to him in the course of a week, he lost 197 00:09:34,000 --> 00:09:36,120 Speaker 5: twelve percentage points among Democratic. 198 00:09:35,760 --> 00:09:36,680 Speaker 4: Voters in New York. 199 00:09:37,440 --> 00:09:40,240 Speaker 5: AOC is talking about running against him for Senate in 200 00:09:40,280 --> 00:09:44,760 Speaker 5: New York, and Chris Murphy was outwardly threatening to take 201 00:09:44,800 --> 00:09:47,320 Speaker 5: him down as the Senate leader. Listen, they're in no 202 00:09:47,600 --> 00:09:51,360 Speaker 5: mood to be bipartisan. They are in no mood I'm 203 00:09:51,400 --> 00:09:54,280 Speaker 5: guessing to work in the budget. But to your point, 204 00:09:54,320 --> 00:09:55,920 Speaker 5: we have to. We have no other choice. 205 00:09:56,800 --> 00:09:56,920 Speaker 3: Thing. 206 00:09:57,360 --> 00:09:59,720 Speaker 2: What they're saying, though, is what's the point of reaching 207 00:09:59,840 --> 00:10:03,360 Speaker 2: a appropriations deal if in a partisan manner you can 208 00:10:03,480 --> 00:10:06,320 Speaker 2: just rescind funding you already agreed to. You don't see 209 00:10:06,320 --> 00:10:06,600 Speaker 2: that point. 210 00:10:06,720 --> 00:10:10,800 Speaker 5: Use here's the distinction I want to make on the 211 00:10:11,760 --> 00:10:14,280 Speaker 5: PBS funding now. I looked into this a lot because 212 00:10:14,280 --> 00:10:18,040 Speaker 5: my home state has a very good public broadcasting system, 213 00:10:18,080 --> 00:10:20,680 Speaker 5: both in TV and radio and digital. We are not 214 00:10:21,520 --> 00:10:25,640 Speaker 5: dissolving the funding forever. We are taking the money for 215 00:10:25,720 --> 00:10:28,839 Speaker 5: public television off automatic pilot. 216 00:10:28,600 --> 00:10:29,600 Speaker 4: Two years in a row. 217 00:10:29,920 --> 00:10:33,480 Speaker 5: We will still have to decide what funding PBS, the 218 00:10:33,480 --> 00:10:37,160 Speaker 5: Corporation for Public Broadcasting, gets in the budget that we 219 00:10:37,280 --> 00:10:40,320 Speaker 5: craft and hopefully passed by October first. That is the 220 00:10:40,640 --> 00:10:43,880 Speaker 5: specific impact of recisions on the PBS funding now. I 221 00:10:43,880 --> 00:10:46,440 Speaker 5: can't comment on all the other programs that are in there. 222 00:10:46,480 --> 00:10:48,200 Speaker 5: I know some money for AIDS was put back in 223 00:10:48,679 --> 00:10:52,760 Speaker 5: for HIV situations, but I hear you. I know, I 224 00:10:52,840 --> 00:10:55,760 Speaker 5: understand the argument. I just don't think you can tie 225 00:10:55,800 --> 00:10:58,480 Speaker 5: it to just recisions. I think this is a the 226 00:10:58,720 --> 00:11:01,920 Speaker 5: Democrats base does not want to see them working with Republicans. 227 00:11:01,960 --> 00:11:05,480 Speaker 5: The Democrats base is telling their supporters to go to 228 00:11:05,520 --> 00:11:07,920 Speaker 5: our town halls and get arrested, to go to our 229 00:11:07,960 --> 00:11:11,920 Speaker 5: town halls and physically confront members of Congress. It's a 230 00:11:12,040 --> 00:11:16,480 Speaker 5: very different, aggressive approach that I'm sure many traditional Democrats 231 00:11:16,559 --> 00:11:20,720 Speaker 5: don't agree with, but their party is in no mood 232 00:11:20,720 --> 00:11:23,200 Speaker 5: to see a lot done in a bipartisan manner. I 233 00:11:23,320 --> 00:11:26,120 Speaker 5: am very hopeful that we can do that. I'm working 234 00:11:26,120 --> 00:11:30,040 Speaker 5: with my Democratic counterpart very well on housing supply issues 235 00:11:30,040 --> 00:11:32,360 Speaker 5: in my subcommittee, so I know it can happen. 236 00:11:32,559 --> 00:11:33,920 Speaker 4: I just hope it does happen. 237 00:11:35,400 --> 00:11:37,520 Speaker 2: All right, Congressman, we appreciate you joining us here on 238 00:11:37,559 --> 00:11:40,839 Speaker 2: balance of power. As always, Republican Congressman Mike Flood of Nebraska, 239 00:11:40,960 --> 00:11:43,440 Speaker 2: member of the House Financial Services Committee, also vice chair 240 00:11:43,800 --> 00:11:46,400 Speaker 2: of the Republican Main Street Caucus with us here on 241 00:11:46,440 --> 00:11:48,160 Speaker 2: Bloomberg TV and Radio, and. 242 00:11:48,240 --> 00:11:51,680 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 243 00:11:51,760 --> 00:11:54,600 Speaker 1: us live weekdays at noon and five pm. E's durn 244 00:11:54,760 --> 00:11:58,120 Speaker 1: on Apple, Cocklay and Android Otto with the Bloomberg Business App. 245 00:11:58,240 --> 00:12:00,760 Speaker 1: You can also listen live on and is on Alexa 246 00:12:00,920 --> 00:12:04,559 Speaker 1: from our flagship New York station Just Say Alexa played 247 00:12:04,559 --> 00:12:05,800 Speaker 1: Bloomberg eleven thirty. 248 00:12:07,640 --> 00:12:09,560 Speaker 2: Tyler Kendall and myself are keeping you up to date 249 00:12:09,600 --> 00:12:11,680 Speaker 2: on all things happening here in Washington, which, as we 250 00:12:11,679 --> 00:12:13,839 Speaker 2: speak right now at the White House is a press 251 00:12:13,840 --> 00:12:16,920 Speaker 2: briefing with the White House Press Secretary Caroline Lovitt. It's 252 00:12:16,960 --> 00:12:19,360 Speaker 2: just begun. She's running right now through the president's upcoming 253 00:12:19,400 --> 00:12:22,400 Speaker 2: travel schedule, including a trip to Scotland that is scheduled 254 00:12:22,400 --> 00:12:24,480 Speaker 2: for the end of next week. But of course we're 255 00:12:24,520 --> 00:12:26,400 Speaker 2: going to be paying close attention to whether or not 256 00:12:26,679 --> 00:12:29,920 Speaker 2: she sheds any light on the ongoing narrative around President 257 00:12:29,960 --> 00:12:33,640 Speaker 2: Trump and his feelings or intentions with the Federal Reserve 258 00:12:33,760 --> 00:12:36,400 Speaker 2: Chair Jerome Powell, which he took to True Social to 259 00:12:36,440 --> 00:12:39,560 Speaker 2: talk about again today, referring to him only as too late, 260 00:12:40,040 --> 00:12:43,280 Speaker 2: saying great numbers just out referring to this morning's retail 261 00:12:43,320 --> 00:12:46,840 Speaker 2: sales data lower the rate in all caps, so still 262 00:12:46,880 --> 00:12:49,880 Speaker 2: pushing for lower interest rates. Even after suggesting yesterday Tyler 263 00:12:49,920 --> 00:12:52,640 Speaker 2: that he's not planning to fire Chairman pell at least 264 00:12:52,720 --> 00:12:53,040 Speaker 2: right now. 265 00:12:53,320 --> 00:12:55,600 Speaker 3: He said it would be highly unlikely, though he did 266 00:12:55,640 --> 00:12:57,800 Speaker 3: confirm that he actually floated the idea to a group 267 00:12:57,840 --> 00:13:00,640 Speaker 3: of Republicans who visited him at the White House earlier 268 00:13:00,720 --> 00:13:03,360 Speaker 3: this week to talk about some stalled legislation that was 269 00:13:03,400 --> 00:13:06,200 Speaker 3: on the hill. He denied that there was a letter written, 270 00:13:06,200 --> 00:13:09,120 Speaker 3: which is actually something that you pressed the head of 271 00:13:09,160 --> 00:13:11,840 Speaker 3: the Federal Housing Finance Agency, Bill Polty on last night. 272 00:13:11,880 --> 00:13:14,280 Speaker 3: He wouldn't confirm or deny whether or not he had 273 00:13:14,320 --> 00:13:15,880 Speaker 3: written this letter in question. 274 00:13:16,000 --> 00:13:17,880 Speaker 2: Yeah, after The New York Times reported that he had 275 00:13:17,960 --> 00:13:20,199 Speaker 2: drafted something given it to the President and maybe that's 276 00:13:20,240 --> 00:13:22,920 Speaker 2: what the President was flashing the round. Pulty didn't want 277 00:13:22,920 --> 00:13:25,880 Speaker 2: to comment on that specifically in our interview, but of 278 00:13:25,880 --> 00:13:28,920 Speaker 2: course he did have pretty strong thoughts on the future 279 00:13:29,360 --> 00:13:31,640 Speaker 2: of the FED chairman, what the President should do or 280 00:13:31,679 --> 00:13:34,600 Speaker 2: what Chairman Pal specifically should do as he pushes for 281 00:13:34,640 --> 00:13:36,920 Speaker 2: his resignation. Here's part of what he told us. 282 00:13:37,559 --> 00:13:41,200 Speaker 6: Ultimately, the President will make whatever decision that he sees said, 283 00:13:41,240 --> 00:13:43,720 Speaker 6: and of course the president always follows the law and 284 00:13:43,760 --> 00:13:46,520 Speaker 6: he'll continue to do that. That will ultimately be up 285 00:13:46,559 --> 00:13:48,520 Speaker 6: to the president. All I can tell you is in 286 00:13:48,600 --> 00:13:50,520 Speaker 6: charge of Fannie Mae and Freddie Mack, I see the 287 00:13:50,520 --> 00:13:54,040 Speaker 6: devastation every day that is occurring as a result of 288 00:13:54,080 --> 00:13:57,920 Speaker 6: these interest rates being kept high relative to inflation. Inflation 289 00:13:58,040 --> 00:13:59,880 Speaker 6: for the last three months is at one point six 290 00:14:00,040 --> 00:14:03,600 Speaker 6: per on a run rate basis. There's no basis to 291 00:14:03,679 --> 00:14:06,920 Speaker 6: have these rates at four and a half percent. Interest 292 00:14:07,000 --> 00:14:09,880 Speaker 6: rates on mortgages have gone from three percent in President 293 00:14:09,880 --> 00:14:14,200 Speaker 6: Trump's first term to seven percent. It's time that Jerome 294 00:14:14,240 --> 00:14:16,760 Speaker 6: Powell resign, and as I said, I hear that he's 295 00:14:16,800 --> 00:14:19,160 Speaker 6: considering resigning, and I hope he does it very soon. 296 00:14:21,080 --> 00:14:24,160 Speaker 3: We should say that we did press Pulty on who 297 00:14:24,240 --> 00:14:27,720 Speaker 3: he has heard that the chair is considering resigning, and 298 00:14:27,920 --> 00:14:30,560 Speaker 3: he wouldn't give us further details than that. But that 299 00:14:30,680 --> 00:14:32,360 Speaker 3: is where we do want to start by bringing in 300 00:14:32,400 --> 00:14:36,000 Speaker 3: our political panel. They're both Bloomberg Politics contributors, Rick Davis, 301 00:14:36,040 --> 00:14:39,520 Speaker 3: partner at Stone Court Capital and Jeanie Schanzino, Senior Democracy 302 00:14:39,600 --> 00:14:41,960 Speaker 3: fellow with the Center for the Study of the Presidency 303 00:14:42,040 --> 00:14:43,920 Speaker 3: and Congress. Rig I want to start with you, and 304 00:14:43,920 --> 00:14:45,800 Speaker 3: I actually want to pull on a note from Terry 305 00:14:45,840 --> 00:14:49,440 Speaker 3: Haynes of Pangaea Policy, who writes that Senate opposition to 306 00:14:49,680 --> 00:14:51,920 Speaker 3: the president's rhetoric is actually being led by members of 307 00:14:51,960 --> 00:14:54,640 Speaker 3: the Senate Banking Committee, which of course has some oversight 308 00:14:54,720 --> 00:14:57,720 Speaker 3: over the FED, including Senator John Kennedy of Louisiana, who 309 00:14:57,760 --> 00:15:00,000 Speaker 3: has recently said that he does not believe a president 310 00:15:00,000 --> 00:15:03,080 Speaker 3: and to any president has the authority to fire the 311 00:15:03,120 --> 00:15:07,000 Speaker 3: Federal Reserve chair. I'm wondering could Republicans in the Senate 312 00:15:07,040 --> 00:15:09,320 Speaker 3: perhaps put up a roadblock here because aren't they going 313 00:15:09,360 --> 00:15:12,160 Speaker 3: to have to confirm any other nominee that the President 314 00:15:12,160 --> 00:15:15,240 Speaker 3: would put up to replace jer Own Powell. 315 00:15:15,400 --> 00:15:17,880 Speaker 7: Yeah, that certainly is the strength they have on the 316 00:15:17,920 --> 00:15:21,160 Speaker 7: back end. Although you know, we've had some pretty controversial 317 00:15:21,320 --> 00:15:24,440 Speaker 7: picks up to this point in time in the President's cabinet, 318 00:15:24,560 --> 00:15:28,800 Speaker 7: and each time almost one hundred percent of the cabinet 319 00:15:28,840 --> 00:15:31,080 Speaker 7: has been confirmed by the same set of senators. So 320 00:15:32,000 --> 00:15:34,440 Speaker 7: the reality is it's a great threat until you actually 321 00:15:34,480 --> 00:15:38,400 Speaker 7: have to implement it. I'd be surprised that if the 322 00:15:38,440 --> 00:15:42,640 Speaker 7: President does wind up appointing a new FED chairman, regardless 323 00:15:42,680 --> 00:15:46,520 Speaker 7: of whether it's through a firing or retiring that the 324 00:15:46,560 --> 00:15:49,440 Speaker 7: Senate does anything other than confirm his appointee. 325 00:15:51,560 --> 00:15:53,640 Speaker 2: Well, of course, we have a long way, we think, 326 00:15:53,680 --> 00:15:55,880 Speaker 2: before we get to that point, Genie, if we'd take 327 00:15:55,880 --> 00:15:57,760 Speaker 2: the President at his word that he's not intending on 328 00:15:57,800 --> 00:16:00,640 Speaker 2: firing Chairman Powell at least for right now, to nominate 329 00:16:00,680 --> 00:16:04,320 Speaker 2: someone until Pal's term is coming to an end next year. 330 00:16:04,440 --> 00:16:06,480 Speaker 2: In the mid meantime, though, when we think about what 331 00:16:06,640 --> 00:16:08,640 Speaker 2: President Trump really wants to achieve, or at least what 332 00:16:08,680 --> 00:16:11,080 Speaker 2: he's signaling, he wants to make sure the interest burden 333 00:16:11,160 --> 00:16:12,240 Speaker 2: is not such a burden. 334 00:16:12,080 --> 00:16:12,760 Speaker 4: In the United States. 335 00:16:12,800 --> 00:16:14,120 Speaker 2: He doesn't want us to be having to pay so 336 00:16:14,200 --> 00:16:17,080 Speaker 2: much out on our debt. He wants mortgage rates for 337 00:16:17,360 --> 00:16:20,000 Speaker 2: Americans to be lower. And yet there are plenty of 338 00:16:20,000 --> 00:16:22,520 Speaker 2: market participants who suggest you mess with the independence of 339 00:16:22,520 --> 00:16:25,160 Speaker 2: the Federal Reserve and actually what you might get is 340 00:16:25,280 --> 00:16:29,160 Speaker 2: higher interest rates on the long end of the treasury curve. 341 00:16:29,240 --> 00:16:31,560 Speaker 2: Is there a chance here that the market actually is 342 00:16:31,600 --> 00:16:33,840 Speaker 2: the one that's going to have to speak since to 343 00:16:33,880 --> 00:16:34,640 Speaker 2: President Trump? 344 00:16:36,160 --> 00:16:39,680 Speaker 8: Absolutely, and I think we've been hearing this over and 345 00:16:39,720 --> 00:16:42,760 Speaker 8: over again for the last six months of his second term. 346 00:16:43,080 --> 00:16:46,000 Speaker 8: Is that so much of what he has said and 347 00:16:46,160 --> 00:16:49,360 Speaker 8: done economically, it has been the market that has had 348 00:16:49,360 --> 00:16:53,560 Speaker 8: to quote unquote talk since into him. And so he is, 349 00:16:53,720 --> 00:16:56,560 Speaker 8: like most presidents, wants the interest rates to go down. 350 00:16:56,720 --> 00:16:58,600 Speaker 8: And there's nothing new about this. 351 00:16:59,120 --> 00:17:00,640 Speaker 4: But you look, on the one. 352 00:17:00,440 --> 00:17:04,280 Speaker 8: Side, his tariff policy and all of this uncertainty is 353 00:17:04,320 --> 00:17:08,880 Speaker 8: working against him, and Jerome Powell and most economists will 354 00:17:08,920 --> 00:17:11,800 Speaker 8: tell you that. And so it may be the market 355 00:17:11,840 --> 00:17:14,840 Speaker 8: in the end that has to do this. And you know, 356 00:17:14,920 --> 00:17:20,040 Speaker 8: one big component of this entire issue is this uncertainty 357 00:17:20,080 --> 00:17:23,320 Speaker 8: with his tariffs, and yet his commitment to that has 358 00:17:23,400 --> 00:17:27,280 Speaker 8: outweighed everything else, and so that continues to put a 359 00:17:27,320 --> 00:17:30,639 Speaker 8: strain on this issue of lowering the interest rates. 360 00:17:32,200 --> 00:17:34,320 Speaker 3: Well, to build off of this rick, we actually have 361 00:17:34,359 --> 00:17:36,880 Speaker 3: a great story on the Bloomberg terminal today about how 362 00:17:36,920 --> 00:17:41,040 Speaker 3: President Trump is struggling to market the Reconciliation Package, the 363 00:17:41,080 --> 00:17:43,440 Speaker 3: One Big Beautiful Bill. There's a new CNN pull out 364 00:17:43,440 --> 00:17:46,200 Speaker 3: this week that says sixty one percent of Americans actually 365 00:17:46,240 --> 00:17:50,080 Speaker 3: oppose the legislation. Now, the idea of this legislation is 366 00:17:50,119 --> 00:17:54,040 Speaker 3: to stimulate the economy, get more cash into consumers pockets quickly. 367 00:17:54,160 --> 00:17:57,320 Speaker 3: I'm wondering what your take is, why is the messaging 368 00:17:57,359 --> 00:17:59,919 Speaker 3: around this bill if we're looking at this polling not 369 00:18:00,080 --> 00:18:01,480 Speaker 3: resonating yet with Americans. 370 00:18:02,920 --> 00:18:05,600 Speaker 7: Well, I think one thing is that the administration really 371 00:18:05,640 --> 00:18:09,359 Speaker 7: has not done much marketing. We talked about this tonight 372 00:18:09,480 --> 00:18:12,239 Speaker 7: the bill was passed in the United States Senate, that 373 00:18:12,280 --> 00:18:15,840 Speaker 7: they have been spending months talking to each other about 374 00:18:15,880 --> 00:18:18,359 Speaker 7: selling this bill, but they have not been spending months 375 00:18:18,359 --> 00:18:21,720 Speaker 7: talking to the American people about the benefits of this bill, 376 00:18:21,880 --> 00:18:24,440 Speaker 7: and they still haven't done that. In fact, the President 377 00:18:24,480 --> 00:18:28,199 Speaker 7: had a wonderful opportunity in Pennsylvania to talk about it, 378 00:18:28,240 --> 00:18:31,080 Speaker 7: and he talked about job creation and industry, which is 379 00:18:31,119 --> 00:18:33,679 Speaker 7: his favorite topic when he hits the Huskings, but he 380 00:18:33,720 --> 00:18:37,680 Speaker 7: didn't address the basic framework of the tax cuts and 381 00:18:38,840 --> 00:18:43,240 Speaker 7: the budget cuts. So unless somebody named Donald Trump is 382 00:18:43,240 --> 00:18:45,960 Speaker 7: out talking about this bill every day, the American people 383 00:18:45,960 --> 00:18:47,800 Speaker 7: are going to listen to who is, and that is 384 00:18:48,280 --> 00:18:52,119 Speaker 7: Democratic senators, Democratic House members, leaders of the Democratic Party, 385 00:18:52,400 --> 00:18:54,480 Speaker 7: and they have a different take on this. One of 386 00:18:54,480 --> 00:18:56,399 Speaker 7: the things you can assume is one of the reasons 387 00:18:56,440 --> 00:18:59,359 Speaker 7: why the President is so desperate for these tax cuts 388 00:18:59,720 --> 00:19:02,640 Speaker 7: is to get the economy moving faster, to take credit 389 00:19:02,720 --> 00:19:08,440 Speaker 7: for that because of the passage of the Big Beautiful Bill. 390 00:19:08,560 --> 00:19:11,960 Speaker 7: So there are certainly good political reasons to want to 391 00:19:11,960 --> 00:19:16,080 Speaker 7: see those interest rates come down, and obviously economic growth 392 00:19:16,119 --> 00:19:18,480 Speaker 7: is one of them. 393 00:19:18,520 --> 00:19:21,439 Speaker 2: Well, as Rick points us to subjects that President Trump 394 00:19:21,800 --> 00:19:23,880 Speaker 2: does or does not want to talk about, in subjects 395 00:19:23,920 --> 00:19:26,840 Speaker 2: that Democrats do or do not want to talk about, Genie, 396 00:19:26,920 --> 00:19:30,240 Speaker 2: let's bring Jeffrey Epstein into this conversation, because this is 397 00:19:30,280 --> 00:19:32,800 Speaker 2: of course a saga that has dominated Washington for the 398 00:19:32,880 --> 00:19:37,400 Speaker 2: last week or so, as conservatives or far right members 399 00:19:37,400 --> 00:19:40,680 Speaker 2: of the MAGA movement continually are pushing for more transparency 400 00:19:40,720 --> 00:19:43,560 Speaker 2: around the Epstein files, and President Trump is continually saying 401 00:19:43,560 --> 00:19:46,600 Speaker 2: he is not interested in talking about this any further, 402 00:19:47,200 --> 00:19:51,000 Speaker 2: and actually took to True Social yesterday to slam some 403 00:19:51,119 --> 00:19:54,720 Speaker 2: of his supporters directly saying, quote, their new scam is 404 00:19:54,720 --> 00:19:57,720 Speaker 2: what we will forever call the Jeffrey Epstein hoaxed and 405 00:19:57,840 --> 00:20:02,000 Speaker 2: my past supporters have bought in to this BS, hook 406 00:20:02,080 --> 00:20:05,360 Speaker 2: line and sinker. They haven't learned their lesson and probably 407 00:20:05,359 --> 00:20:08,880 Speaker 2: never will, even after being conned by the lunatic left 408 00:20:09,000 --> 00:20:13,160 Speaker 2: for eight long years. This is to his own supporters, Genie, 409 00:20:13,240 --> 00:20:15,280 Speaker 2: or I guess what he's now referring to as his 410 00:20:15,400 --> 00:20:17,280 Speaker 2: past supporters. What does it make you think. 411 00:20:18,920 --> 00:20:21,439 Speaker 8: I think we are looking at the first time in 412 00:20:21,640 --> 00:20:24,920 Speaker 8: his political life that Donald Trump has not been able 413 00:20:25,000 --> 00:20:29,040 Speaker 8: to control the narrative as it pertains to his own supporters. 414 00:20:29,240 --> 00:20:32,399 Speaker 8: This has really gotten away from him. I described it 415 00:20:32,440 --> 00:20:35,600 Speaker 8: before as sort of a Frankenstein and that is what 416 00:20:35,680 --> 00:20:39,679 Speaker 8: we are seeing. And you know, Donald Trump usually is 417 00:20:39,720 --> 00:20:42,880 Speaker 8: a very good and what I would call strategist or 418 00:20:42,960 --> 00:20:46,800 Speaker 8: executioner when it comes to the media, and he's been 419 00:20:46,880 --> 00:20:50,560 Speaker 8: anything but on this Ebstein story. And you just said it, Kayleie, 420 00:20:50,680 --> 00:20:53,560 Speaker 8: you want to stop talking about something, and yet you 421 00:20:53,760 --> 00:20:57,120 Speaker 8: keep going on truth Social all weekend, day and night 422 00:20:57,520 --> 00:21:01,360 Speaker 8: long posts. You go into the old yesterday, you talk 423 00:21:01,440 --> 00:21:04,239 Speaker 8: about it more, and then to make matters worse, you 424 00:21:04,520 --> 00:21:09,760 Speaker 8: fire a prosecutor without apparent cause, and that would be 425 00:21:10,160 --> 00:21:14,040 Speaker 8: homie and you do that and that regies it all 426 00:21:14,119 --> 00:21:16,920 Speaker 8: up again. And of course much of your supporters, from 427 00:21:17,000 --> 00:21:19,639 Speaker 8: Joe Rogan to Megan Kelly. I mean, the list goes on. 428 00:21:20,040 --> 00:21:24,120 Speaker 8: Even on the epc sp Brather Awards last night, there 429 00:21:24,200 --> 00:21:26,400 Speaker 8: was a great joke about it. This thing has its 430 00:21:26,440 --> 00:21:29,520 Speaker 8: own life and Donald Trump is not controlling it. 431 00:21:32,040 --> 00:21:35,320 Speaker 3: Well, Rick to build off this, we saw Congress from Brocanna, 432 00:21:35,400 --> 00:21:38,800 Speaker 3: He's a progressive from a Democrat from California. He actually 433 00:21:38,800 --> 00:21:41,920 Speaker 3: introduced a bill with an unlikely ally though they have 434 00:21:42,000 --> 00:21:44,439 Speaker 3: paired up on legislation before, which is Thomas Massi, a 435 00:21:44,480 --> 00:21:47,560 Speaker 3: Republican from Kentucky, that would essentially force the House to 436 00:21:47,640 --> 00:21:50,840 Speaker 3: vote on the complete release of the government's files. When 437 00:21:50,840 --> 00:21:53,359 Speaker 3: you have Congress now getting involved so heavily in this, 438 00:21:53,760 --> 00:21:55,760 Speaker 3: is this a story that's going to go away for 439 00:21:56,000 --> 00:21:56,680 Speaker 3: this White House? 440 00:21:57,920 --> 00:22:00,840 Speaker 7: Well, this is the perfect summer skin. I mean, we 441 00:22:00,960 --> 00:22:03,520 Speaker 7: always have one in the summertime in Washington. One of 442 00:22:03,520 --> 00:22:06,320 Speaker 7: the reasons we love Washington in the summer, maybe the 443 00:22:06,359 --> 00:22:09,520 Speaker 7: only reason we love Washington in the summer. And this 444 00:22:09,680 --> 00:22:13,960 Speaker 7: is a bipartisan scandal. I mean, Jim Jordan has got 445 00:22:14,000 --> 00:22:18,520 Speaker 7: Pam Bondi coming in for a August hearing in the 446 00:22:18,560 --> 00:22:19,680 Speaker 7: House of Representatives. 447 00:22:19,760 --> 00:22:21,119 Speaker 4: That ought to be a ton of fun. 448 00:22:21,720 --> 00:22:24,960 Speaker 7: But as you point out, Democrats and Republicans are all 449 00:22:25,080 --> 00:22:27,600 Speaker 7: calling for the same thing, transparency. 450 00:22:27,760 --> 00:22:28,760 Speaker 4: Let's get it all out. 451 00:22:29,359 --> 00:22:29,560 Speaker 3: You know. 452 00:22:29,680 --> 00:22:32,320 Speaker 7: In fact, I think that the only person right now 453 00:22:32,680 --> 00:22:36,439 Speaker 7: left in his corner to defend against both parties is 454 00:22:36,560 --> 00:22:41,919 Speaker 7: Donald Trump. And for what reason He's made good political 455 00:22:42,000 --> 00:22:46,119 Speaker 7: points on you know, berating the deep state that's keeping 456 00:22:46,160 --> 00:22:50,160 Speaker 7: these this information from you. There's never been an articulation 457 00:22:50,680 --> 00:22:54,879 Speaker 7: as to why there isn't a more thorough examination of 458 00:22:54,920 --> 00:22:58,240 Speaker 7: these records. So you know, the jig is up. This 459 00:22:58,280 --> 00:23:00,240 Speaker 7: is going to happen for the next sixty today day 460 00:23:01,240 --> 00:23:03,840 Speaker 7: and maybe the only relief is Labor Day for the 461 00:23:03,880 --> 00:23:07,320 Speaker 7: president because then all things turn to what's happening on 462 00:23:07,359 --> 00:23:09,400 Speaker 7: the hill and maybe he gets out of the jam. 463 00:23:09,480 --> 00:23:13,600 Speaker 2: Then well, Rick, interesting that you bring up transparency as 464 00:23:13,640 --> 00:23:15,840 Speaker 2: we are getting a bit of medical transparency right now 465 00:23:15,920 --> 00:23:18,160 Speaker 2: out of the White House Press briefing, as the Press 466 00:23:18,160 --> 00:23:22,359 Speaker 2: Secretary Carolinelevitch shares that President Trump underwent a medical exam 467 00:23:22,840 --> 00:23:25,879 Speaker 2: for a swelling in his leg, that that exam found 468 00:23:25,960 --> 00:23:30,439 Speaker 2: chronic venus insufficiency, though Trump overall, she says, remains in 469 00:23:30,600 --> 00:23:34,080 Speaker 2: excellent health. Will of course continue to monitor any updates 470 00:23:34,080 --> 00:23:37,560 Speaker 2: in that regard for you, Genie, But when we consider 471 00:23:37,840 --> 00:23:41,600 Speaker 2: this issue of transparency around Jeffrey Epstein specifically, you could 472 00:23:41,600 --> 00:23:43,840 Speaker 2: make the case that for President Trump, yes, it may 473 00:23:43,840 --> 00:23:45,640 Speaker 2: be annoying to have to talk about it, but he's 474 00:23:45,640 --> 00:23:48,800 Speaker 2: not running for reelection. He's in his last term. Less 475 00:23:48,840 --> 00:23:51,000 Speaker 2: of a problem for him. What about someone like jd 476 00:23:51,119 --> 00:23:53,720 Speaker 2: Vance who may have greater ambitions and talked a big 477 00:23:53,760 --> 00:23:57,800 Speaker 2: game about Epstein prior to being the second hand to 478 00:23:57,840 --> 00:24:00,520 Speaker 2: the president in this administration. What kind of does this 479 00:24:00,560 --> 00:24:01,000 Speaker 2: put him in? 480 00:24:02,480 --> 00:24:05,520 Speaker 8: Yeah, I mean it's a perfect example jd Vance and 481 00:24:05,920 --> 00:24:09,119 Speaker 8: other members of both the administration and quite frankly members 482 00:24:09,160 --> 00:24:12,760 Speaker 8: of Congress who find themselves caught between you know, this 483 00:24:12,960 --> 00:24:17,240 Speaker 8: huge mag of voice, whether it's in podcasting, whether it's online, 484 00:24:17,760 --> 00:24:21,240 Speaker 8: and the President himself who's saying stop this. And so, 485 00:24:21,760 --> 00:24:23,800 Speaker 8: you know, we're going to see how jd Vance is 486 00:24:23,840 --> 00:24:27,400 Speaker 8: able to handle it. I think the safe bed is 487 00:24:27,400 --> 00:24:31,240 Speaker 8: is that he should call for transparency, as you and 488 00:24:31,760 --> 00:24:36,679 Speaker 8: just talking about, because that is something that almost everybody 489 00:24:36,720 --> 00:24:39,359 Speaker 8: agrees is necessary in a case like this. And the 490 00:24:39,440 --> 00:24:41,919 Speaker 8: problem is now with the President out there calling it 491 00:24:41,960 --> 00:24:45,000 Speaker 8: a hoax, you have to ask the President what is 492 00:24:45,040 --> 00:24:49,479 Speaker 8: the hoax? Jeffrey Epstein's crimes against children, his pedophilia, what 493 00:24:49,720 --> 00:24:52,280 Speaker 8: is this hoax? And he has yet to explain that. 494 00:24:52,359 --> 00:24:54,440 Speaker 8: And so for jd Vance to have to answer these 495 00:24:54,520 --> 00:24:59,320 Speaker 8: questions and other Republicans or supporters of President Trump, it 496 00:24:59,359 --> 00:25:02,440 Speaker 8: becomes very very messy and This doesn't go away any soon. 497 00:25:02,840 --> 00:25:05,439 Speaker 8: When the problem is in your home, when it is 498 00:25:05,480 --> 00:25:08,160 Speaker 8: in your base, it is very hard to run away 499 00:25:08,240 --> 00:25:10,040 Speaker 8: the same way you can when it's coming from the 500 00:25:10,040 --> 00:25:11,280 Speaker 8: other side. 501 00:25:12,200 --> 00:25:15,240 Speaker 2: All right, Jeanie Shanzano and Rick Davis, our political panel 502 00:25:15,240 --> 00:25:17,880 Speaker 2: weighing in on this year's summer scandal. 503 00:25:22,520 --> 00:25:24,960 Speaker 4: Thanks for listening to the Balance of Power podcast. 504 00:25:25,560 --> 00:25:28,719 Speaker 5: Make sure to subscribe if you haven't already, at Apple, Spotify, 505 00:25:28,800 --> 00:25:31,400 Speaker 5: or wherever you get your podcasts, and you can find 506 00:25:31,440 --> 00:25:34,679 Speaker 5: us live every weekday from Washington, DC at noontime Eastern 507 00:25:35,000 --> 00:25:36,440 Speaker 5: at Bloomberg dot com.