WEBVTT - Massachusetts Senator Elizabeth Warren Talks Tariffs, Federal Reserve Monetary Policy

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Democratic Senator Elizabeth Warren of Massachusetts, who joins us live

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<v Speaker 2>from Capitol Hill.

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<v Speaker 1>Senator, it's great to have you back.

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<v Speaker 2>So here we are with our first economic contraction since

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<v Speaker 2>twenty twenty two.

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<v Speaker 1>Are we already in a recession?

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<v Speaker 3>Well, some economists think we're already in a recession, and

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<v Speaker 3>the overwhelming majority say, if we're not already, we are

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<v Speaker 3>certainly sliding into one. The damage done by the chaos

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<v Speaker 3>around the Trump tariffs has really delivered a body blow

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<v Speaker 3>to our economy. And of course we've seen it in

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<v Speaker 3>the stock market, we've seen it in the bond market.

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<v Speaker 3>But look where we really are on this is that

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<v Speaker 3>families are struggling and they're delivering that message. Remember how

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<v Speaker 3>Donald Trump won, He said he would lower costs on

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<v Speaker 3>day one, those were his words. On day one he

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<v Speaker 3>gets elected, he immediately says that is one of the

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<v Speaker 3>main reasons he won. We are one hundred days in,

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<v Speaker 3>and what has happened. The economy has shrunk and the

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<v Speaker 3>price and groceries is up for families all across this country.

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<v Speaker 3>That's a bad economic outlook.

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<v Speaker 4>Well, when we consider that outlook, then Senator knowing we

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<v Speaker 4>are a week away from the Federal Reserve's next rate decision,

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<v Speaker 4>if they choose not to cut next week, to wait

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<v Speaker 4>till June or July or even after that, would President

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<v Speaker 4>Trump be right that Chairman Power risks being too late.

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<v Speaker 3>The problem now is the crisis that Donald Trump has created.

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<v Speaker 3>Chairman Powell said as soon as Donald Trump started announcing

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<v Speaker 3>these red light green light tariffs that we were going

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<v Speaker 3>to have tariffs across the board on virtually every nation,

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<v Speaker 3>on virtually every product. That the consequence of that would

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<v Speaker 3>be to do two things. One is to drive up prices,

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<v Speaker 3>in other words, an increase in inflation, and two to

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<v Speaker 3>drive up unemployment. And you all know what that means.

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<v Speaker 3>That's stagflation, and it neuters the Fed's only tool, and

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<v Speaker 3>that is changing the interest rates, because if they increase

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<v Speaker 3>the interest traits, that will help push down inflation, but

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<v Speaker 3>it will drive up unemployment. And of course the reverse

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<v Speaker 3>is true. If they lower interest rates, they run the

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<v Speaker 3>risk of setting inflation a flame. At this point, so

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<v Speaker 3>Donald Trump has created a crisis, and now the tool

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<v Speaker 3>that the Fed would use becomes much less effective for

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<v Speaker 3>the FED to actually be able to use it.

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<v Speaker 1>This is Donald.

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<v Speaker 3>Trump's problem, and he has created it and now compounded it.

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<v Speaker 2>Well, we want to get to your reaction, Congressional reaction,

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<v Speaker 2>democratic reaction to the terif policies, Senator, because shortly after

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<v Speaker 2>this interview, you're going to force a vote that our

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<v Speaker 2>audience should know about.

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<v Speaker 1>Over the president's tariff authority. Here.

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<v Speaker 2>I know you have a couple of Republicans on board,

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<v Speaker 2>but this appears to.

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<v Speaker 1>Be going nowhere in the House, and I.

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<v Speaker 2>Wonder is there anything that Democrats can do beyond a

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<v Speaker 2>symbolic gesture to become a check on the president's policy here.

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<v Speaker 3>So let's just remember, just so everyone understands, why is

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<v Speaker 3>it that the President of the United States can wake

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<v Speaker 3>up in the morning and announce one tariff policy and

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<v Speaker 3>by mid afternoon being a second one, and by evening

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<v Speaker 3>be in a third one. It's all because there is

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<v Speaker 3>a statutory provision that says in an emergency, the president

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<v Speaker 3>can impose sanctions, but Congress can say, hey, there's no emergency.

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<v Speaker 3>So we get to roll that back. And that's what

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<v Speaker 3>Senator Widen and I have now proposed. This is the

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<v Speaker 3>bill that will be on the floor later today to

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<v Speaker 3>just roll back Donald Trump's authority to move in and

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<v Speaker 3>say tariff's up, tariff's down, exception for you, hire tariffs

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<v Speaker 3>for you over there. The significance of this is, look,

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<v Speaker 3>all the Democrats support it. That's not an issue. It's

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<v Speaker 3>really to put the Republicans on the record. You understand

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<v Speaker 3>what kind of damage this tariff red light green light

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<v Speaker 3>is creating. Republicans, so you have the opportunity right here

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<v Speaker 3>to take a stand and say we're actually going to

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<v Speaker 3>put some curves on what Donald Trump does. They can

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<v Speaker 3>vote for the resolution, or they can continue to say nope,

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<v Speaker 3>the only power in Washington is with Donald Trump. They

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<v Speaker 3>can bend a need to Donald Trump and say to

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<v Speaker 3>all Americans who are suffering because of higher prices than

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<v Speaker 3>a shrinking economy, and to all of the world that

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<v Speaker 3>says the United States is not a reliable trading partner.

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<v Speaker 3>We have the opportunity, if the Republicans will join us

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<v Speaker 3>to put some curves on Donald Trump and to reverse

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<v Speaker 3>the damage he's doing. We'll find out if the Republicans

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<v Speaker 3>are only here to take a mee to Donald Trump

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<v Speaker 3>or if they actually are willing to stand up for

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<v Speaker 3>the American people.

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<v Speaker 4>Well, last we spoke with you Senator, you argue that

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<v Speaker 4>it was not just about Republicans in Congress, but about

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<v Speaker 4>others in the Trump administration, including the Treasury Secretary Scott Besson,

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<v Speaker 4>who should be taking action here. We know that Besson

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<v Speaker 4>is testifying in the House Financial Services Committee next week.

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<v Speaker 4>Do you expect him to appear before the Banking Committee?

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<v Speaker 4>And what will he need to answer for if he

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<v Speaker 4>does so.

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<v Speaker 3>Look, Secretary Besson is going to have to explain he's

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<v Speaker 3>out here as the number one apologist for Donald Trump.

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<v Speaker 3>And some of the things I want to know from

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<v Speaker 3>Secretary Beson is what is he doing going in front

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<v Speaker 3>of a closed door group of well healed stock traders

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<v Speaker 3>and people who are active in the market and giving

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<v Speaker 3>advance information about where tariff policy is headed. I just

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<v Speaker 3>want to make sure that Secretary Besson understands he doesn't

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<v Speaker 3>just work for a handful of Wall Street investors and

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<v Speaker 3>how to make them Richard. He's actually here to work

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<v Speaker 3>for the American people and to provide stability in the

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<v Speaker 3>stock market. And part of that is to reassure people

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<v Speaker 3>that it is not corruption, that it is not a

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<v Speaker 3>rigged game. I'd like to hear from Secretary bessend about that,

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<v Speaker 3>and in fact, I've already sent him a letter about that,

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<v Speaker 3>but I'd like to get him in a hearing and

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<v Speaker 3>just be able to ask him a little more about that.

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<v Speaker 2>Sounds like you want to talk to Jeff Bezos as well,

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<v Speaker 2>and you did send a letter. Well, I do, but

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<v Speaker 2>to him this morning, Senator, you're calling on mister Bezos

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<v Speaker 2>to disclose information about his conversation with President Trump following

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<v Speaker 2>reports that Amazon was going to itemize the cost of

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<v Speaker 2>tariffs on products for consumers. Of course, Amazon is not

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<v Speaker 2>doing that. The White House called that idea of hostile

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<v Speaker 2>and political So here we are, Senators, should publicly traded

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<v Speaker 2>companies in the United States assume that Donald Trump is

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<v Speaker 2>the de facto chairman of their boards.

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<v Speaker 3>Like the way you have put it, that certainly is

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<v Speaker 3>how he wants to behave. But listen to that underlying message.

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<v Speaker 3>What Donald Trump is saying is if the American people

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<v Speaker 3>can see clearly what his tariffs are costing them, that

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<v Speaker 3>creates a real problem for Donald Trump and for the

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<v Speaker 3>Republicans in Congress. So his solution is not to do

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<v Speaker 3>something more sensible on tariffs. His solution is to try

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<v Speaker 3>to end access to the information and to persuade Jeff

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<v Speaker 3>Bezos that he needs to erase that information. And yes,

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<v Speaker 3>I want to hear about that conversation. In fact, I

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<v Speaker 3>want to hear about all of the conversations that Donald

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<v Speaker 3>Trump has with his million dollar donors and what it

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<v Speaker 3>is he is both promising and threatening as he tries

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<v Speaker 3>to create even more chaos and corruption in our economy.

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<v Speaker 4>Senator, I'd like to ask you about something else. As

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<v Speaker 4>he's working on making deals with trading partners, or at

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<v Speaker 4>least his administration is, they're also working on a deal

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<v Speaker 4>with Ukraine, suggesting a minerals deal specifically, could be signed

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<v Speaker 4>as early as this afternoon if Ukraine is willing. Should

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<v Speaker 4>that be taking the form of a formal treaty? Should

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<v Speaker 4>the Senate have a chance to weigh in on that?

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<v Speaker 3>Yes, the Senate should have an opportunity to weigh in. Look,

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<v Speaker 3>the Senate has and the House long supported Ukraine. It's

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<v Speaker 3>Donald Trump who has persuaded a handful of extremists that

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<v Speaker 3>somehow this country needs to be on the side of

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<v Speaker 3>the aggressor, on the side of Russia. That is fundamentally wrong.

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<v Speaker 3>The Ukrainians are fighting on the front lines for democracy

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<v Speaker 3>and understand this. If Vladimir Putin can get away with

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<v Speaker 3>an invasion of Ukraine, it's not like he will be

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<v Speaker 3>full and he will stop there. He's going to continue

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<v Speaker 3>to come after more and more of his neighbors. That

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<v Speaker 3>is a threat to all of Europe, but it is

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<v Speaker 3>also ultimately a threat to the United States of America.

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<v Speaker 3>I know that Donald Trump seems to have some kind

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<v Speaker 3>of love relationship with Vladimir Putin, although lately they seem

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<v Speaker 3>to have had a spat. But at the end of

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<v Speaker 3>the day, the interests of the United States are with

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<v Speaker 3>Europe and with Ukraine. We need to be once again

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<v Speaker 3>a dependable ally. That's what matters most.

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<v Speaker 4>All right, Senator, we know you have that vote to

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<v Speaker 4>get to you that we were just discussing, but we

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<v Speaker 4>appreciate you joining us. Democratic Senator Elizabeth Warren in Massachusetts,

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<v Speaker 4>the rnging member of the Banking Committee. We appreciate your time.