1 00:00:02,520 --> 00:00:08,560 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Joining us now for 2 00:00:08,600 --> 00:00:12,639 Speaker 1: more as Democratic Senator Elizabeth Warren of Massachusetts, ranking member 3 00:00:13,000 --> 00:00:15,680 Speaker 1: on the Senate Banking Committee. Senator, it's always a pleasure 4 00:00:15,720 --> 00:00:18,040 Speaker 1: to have you on Bloomberg TV and radio. This is 5 00:00:18,079 --> 00:00:21,040 Speaker 1: obviously one of those days where we need to compare 6 00:00:21,200 --> 00:00:23,919 Speaker 1: notes with you here, and I will note the fact 7 00:00:23,960 --> 00:00:27,120 Speaker 1: that you delivered an important address earlier today at the 8 00:00:27,200 --> 00:00:29,680 Speaker 1: National Press Club. It wasn't about Jay Powell. It was 9 00:00:29,720 --> 00:00:31,720 Speaker 1: about the future of the Democrat Party, and I know 10 00:00:31,760 --> 00:00:35,919 Speaker 1: affordability and the economy were key components of your address. 11 00:00:35,960 --> 00:00:38,560 Speaker 1: You posted on social media after you left the club 12 00:00:38,960 --> 00:00:42,400 Speaker 1: that President Trump called you after you mentioned him in 13 00:00:42,479 --> 00:00:44,400 Speaker 1: your speech. What did he have to say. 14 00:00:45,159 --> 00:00:48,839 Speaker 2: Well, the speech had been about how Democrats need to 15 00:00:48,880 --> 00:00:52,560 Speaker 2: get out there and fight to lower costs for American families. 16 00:00:52,840 --> 00:00:55,480 Speaker 2: I pointed out that Donald Trump had run for office 17 00:00:55,600 --> 00:00:58,400 Speaker 2: and every day for a year he promised that on 18 00:00:58,560 --> 00:01:01,680 Speaker 2: day one he would lower cost for American families. He 19 00:01:01,720 --> 00:01:03,960 Speaker 2: gets elected, and so the reason he got elected was 20 00:01:04,000 --> 00:01:06,920 Speaker 2: because he promised on day one to lower costs. It 21 00:01:06,959 --> 00:01:09,640 Speaker 2: has been a year now and the cost of groceries 22 00:01:09,720 --> 00:01:11,640 Speaker 2: is up, The cost of healthcare is up, the cost 23 00:01:11,640 --> 00:01:14,080 Speaker 2: of housing is up, the cost of utilities is up, 24 00:01:14,560 --> 00:01:18,480 Speaker 2: all because of Donald Trump and Republican policies. And I 25 00:01:18,520 --> 00:01:21,640 Speaker 2: said it's time both to hold Donald Trump accountable and 26 00:01:21,760 --> 00:01:24,720 Speaker 2: for Democrats to get in there and put out our 27 00:01:24,840 --> 00:01:28,880 Speaker 2: proposals to lower costs and to show that we're willing 28 00:01:28,959 --> 00:01:32,720 Speaker 2: to fight for them. And after that speech was over, 29 00:01:33,160 --> 00:01:36,119 Speaker 2: Donald Trump gave me a call and we talked about 30 00:01:36,160 --> 00:01:39,920 Speaker 2: things we could do to lower costs for American families. 31 00:01:40,360 --> 00:01:43,480 Speaker 2: That is my job, That is the job of Democrats, 32 00:01:43,520 --> 00:01:46,360 Speaker 2: that is the job of Congress and the president of 33 00:01:46,400 --> 00:01:47,320 Speaker 2: the United States. 34 00:01:48,000 --> 00:01:50,840 Speaker 1: Well wait a minute here, so he called you in 35 00:01:50,920 --> 00:01:54,400 Speaker 1: the spirit of cooperation, Senator, I guess I just assumed 36 00:01:54,440 --> 00:01:56,200 Speaker 1: he was not a fan of your speech. Is this 37 00:01:56,240 --> 00:02:01,160 Speaker 1: the same Donald Trump who wants to ban invests, institutional 38 00:02:01,200 --> 00:02:05,240 Speaker 1: investors from buying single family homes, to stop defense contractors 39 00:02:05,240 --> 00:02:10,360 Speaker 1: from issuing dividends and stock buybacks, wants to start lowering 40 00:02:10,440 --> 00:02:13,360 Speaker 1: interest rates. A lot of these are pages out of 41 00:02:13,360 --> 00:02:15,600 Speaker 1: your book, right, Are you guys going to collaborate on 42 00:02:15,639 --> 00:02:16,200 Speaker 1: these issues? 43 00:02:17,520 --> 00:02:21,840 Speaker 2: Same Donald Trump? In fact, we specifically talked about putting 44 00:02:21,840 --> 00:02:27,080 Speaker 2: a cap on interest rates on credit cards and about 45 00:02:27,160 --> 00:02:30,680 Speaker 2: getting this road to Housing bill that has passed the 46 00:02:30,720 --> 00:02:35,360 Speaker 2: Senate unanimously to build up more housing supply and bring 47 00:02:35,440 --> 00:02:39,280 Speaker 2: down costs. It's hung up by Republicans over in the House. 48 00:02:39,360 --> 00:02:43,000 Speaker 2: Democrats are already we have voted for it, We're ready 49 00:02:43,000 --> 00:02:45,680 Speaker 2: to go, but the Republicans in the House are holding 50 00:02:45,680 --> 00:02:49,160 Speaker 2: it up. And Donald Crump just hasn't delivered on either 51 00:02:49,280 --> 00:02:52,480 Speaker 2: one of those. So my view is, no more talk, 52 00:02:52,800 --> 00:02:56,200 Speaker 2: Let's actually deliver for American families. That's our job. 53 00:02:57,600 --> 00:02:59,959 Speaker 3: So Senator Warren, you sound like you had this common 54 00:03:00,600 --> 00:03:03,120 Speaker 3: with him. There are some similar issues here. Would you 55 00:03:03,200 --> 00:03:06,520 Speaker 3: be willing to work with the president work together to 56 00:03:06,600 --> 00:03:10,360 Speaker 3: handle affordability for the American people, or do you fight 57 00:03:10,480 --> 00:03:13,520 Speaker 3: back with everything going on right now in the midterms 58 00:03:13,600 --> 00:03:14,560 Speaker 3: right around the corner. 59 00:03:15,639 --> 00:03:19,960 Speaker 2: Absolutely, my job is to be here to fight to 60 00:03:20,080 --> 00:03:23,680 Speaker 2: lower costs for American families, and that is what all 61 00:03:23,760 --> 00:03:27,480 Speaker 2: of my Democratic colleagues are here for. The speech I 62 00:03:27,520 --> 00:03:31,079 Speaker 2: was giving today was about how we best do that. 63 00:03:31,600 --> 00:03:33,799 Speaker 2: Do we decide that we're going to lay out our 64 00:03:33,840 --> 00:03:36,880 Speaker 2: agenda and try to soften it up in order not 65 00:03:37,040 --> 00:03:41,880 Speaker 2: to offend any billionaires or corporate CEOs, or are we 66 00:03:42,160 --> 00:03:45,680 Speaker 2: actually going to get in this fight, full throated all 67 00:03:45,720 --> 00:03:50,240 Speaker 2: the way, and show with concrete proposals that we are 68 00:03:50,280 --> 00:03:53,320 Speaker 2: willing to make a difference in people's lives. We are 69 00:03:53,360 --> 00:03:57,200 Speaker 2: willing to fight to unrig an economic system that keeps 70 00:03:57,240 --> 00:04:01,040 Speaker 2: working better and better for the billionaires, worse and worse 71 00:04:01,120 --> 00:04:07,200 Speaker 2: for everyone else. I believe that Democrats must must win 72 00:04:07,560 --> 00:04:09,920 Speaker 2: in November twenty twenty four. And the way we do 73 00:04:10,040 --> 00:04:13,640 Speaker 2: that is we build real credibility on the issue of 74 00:04:13,760 --> 00:04:15,920 Speaker 2: lowering costs for American families. 75 00:04:17,240 --> 00:04:21,039 Speaker 3: Senator, I'm curious in this conversation with President Trump did 76 00:04:21,080 --> 00:04:24,320 Speaker 3: the investigation into fed share Powell come up. 77 00:04:25,120 --> 00:04:27,800 Speaker 2: So look, I'm not going to talk about details in 78 00:04:27,839 --> 00:04:30,279 Speaker 2: a conversation, but I just want to say it was 79 00:04:30,440 --> 00:04:35,600 Speaker 2: all about costs, about how we reduce costs for American families. 80 00:04:36,000 --> 00:04:38,760 Speaker 2: And I've had proposals on the table for a very 81 00:04:38,800 --> 00:04:42,920 Speaker 2: long time. Donald Trump has talked about proposals that would 82 00:04:43,000 --> 00:04:46,839 Speaker 2: reduce costs, but so far had lifted a finger to deliver. 83 00:04:47,400 --> 00:04:50,720 Speaker 2: So for me, it's put up time. You really want 84 00:04:50,760 --> 00:04:53,320 Speaker 2: to make some change. Donald Trump could help make some 85 00:04:53,480 --> 00:04:56,520 Speaker 2: change right now, and that's what I want to see 86 00:04:56,600 --> 00:04:59,360 Speaker 2: us do. I'm in this vice all. 87 00:04:59,240 --> 00:05:01,920 Speaker 1: The way is incredible. Are you guys going to appear 88 00:05:01,960 --> 00:05:05,159 Speaker 1: on stages going to Detroit tomorrow? This is cats and 89 00:05:05,200 --> 00:05:07,479 Speaker 1: dogs living together, Senator, I'm not even sure what to 90 00:05:07,520 --> 00:05:08,159 Speaker 1: ask you next. 91 00:05:08,960 --> 00:05:14,920 Speaker 2: Look understand, American families have been telling us now an 92 00:05:15,000 --> 00:05:19,200 Speaker 2: election after election after election, yea, that their finances are 93 00:05:19,200 --> 00:05:22,520 Speaker 2: getting more and more stressed, that they are more and 94 00:05:22,600 --> 00:05:27,000 Speaker 2: more worried about their economic security. And right now, after 95 00:05:27,080 --> 00:05:29,680 Speaker 2: Donald Trump has been president for a year, it has 96 00:05:29,760 --> 00:05:31,839 Speaker 2: all gotten worse. I don't know if you all saw 97 00:05:32,040 --> 00:05:35,200 Speaker 2: just announced a couple of weeks ago that since Donald 98 00:05:35,200 --> 00:05:39,400 Speaker 2: Trump has been president, home mortgage foreclosures have gone up 99 00:05:39,560 --> 00:05:43,960 Speaker 2: twenty one percent. Costs have gone up in category after 100 00:05:44,080 --> 00:05:49,039 Speaker 2: category after category. And it's about tariffs, It's about corporate consolidation. 101 00:05:49,720 --> 00:05:51,800 Speaker 2: There are a lot of things the Republicans have been 102 00:05:51,839 --> 00:05:56,480 Speaker 2: doing all to drive up costs for families. Families cannot 103 00:05:56,800 --> 00:06:01,080 Speaker 2: take it anymore. My pitch today in this speech is 104 00:06:01,080 --> 00:06:04,839 Speaker 2: that Democrats, this is our moment to rebuild trust with 105 00:06:04,880 --> 00:06:08,960 Speaker 2: the American people. After all, the Democratic Party, we're the 106 00:06:08,960 --> 00:06:13,160 Speaker 2: ones who brought America social security in the forty hour 107 00:06:13,320 --> 00:06:17,520 Speaker 2: work week and the minimum wage, and unemployment insurance and 108 00:06:17,720 --> 00:06:23,080 Speaker 2: Medicare and Medicaid and the Affordable Care Act, and housing 109 00:06:23,200 --> 00:06:27,520 Speaker 2: for first time home buyings and housing for veterans. We 110 00:06:27,600 --> 00:06:30,000 Speaker 2: got out there and fought for those things that help 111 00:06:30,120 --> 00:06:34,599 Speaker 2: build a more financially secure middle class. It is our 112 00:06:34,800 --> 00:06:38,400 Speaker 2: time now to get back in that fight full throated. 113 00:06:38,880 --> 00:06:41,680 Speaker 2: Not to send it down because some billionaire might say, WHOA, 114 00:06:42,160 --> 00:06:45,160 Speaker 2: that means I'll have to pay more taxes. That's too bad. 115 00:06:45,680 --> 00:06:47,679 Speaker 2: Our job is to be in the fight to lower 116 00:06:47,720 --> 00:06:51,680 Speaker 2: costs for American families. And I'm all in, well, you. 117 00:06:51,680 --> 00:06:53,719 Speaker 1: Got the cap on credit cards. We could just keep 118 00:06:53,720 --> 00:06:56,279 Speaker 1: on going here, Senator, But I have to ask you 119 00:06:56,320 --> 00:07:00,200 Speaker 1: about this whole J. Powell affair. Just for starters, the 120 00:07:00,200 --> 00:07:04,040 Speaker 1: man you famously called a dangerous man in a hearing 121 00:07:04,080 --> 00:07:07,599 Speaker 1: in the Senate, we're now hearing about this investigation that 122 00:07:07,640 --> 00:07:10,960 Speaker 1: could bring criminal charges. Do you support that probe? 123 00:07:11,200 --> 00:07:14,440 Speaker 2: No? I do not. I think we're all clear. What's 124 00:07:14,480 --> 00:07:17,280 Speaker 2: going on here. Is it as a pretext for Donald 125 00:07:17,320 --> 00:07:21,320 Speaker 2: Trump to be able to take control of the Federal Reserve. 126 00:07:21,640 --> 00:07:23,559 Speaker 2: I don't have to remind you all and the people 127 00:07:23,560 --> 00:07:27,600 Speaker 2: who listen to this program about the importance of FED independence, 128 00:07:28,040 --> 00:07:30,480 Speaker 2: so that whatever it is the FED is deciding on 129 00:07:30,560 --> 00:07:34,920 Speaker 2: monetary policy. We should have confidence that that decision is 130 00:07:34,960 --> 00:07:39,320 Speaker 2: based on their best assessment of the data about inflation, 131 00:07:39,680 --> 00:07:44,800 Speaker 2: the data about unemployment, the data about GDP growth and investment, 132 00:07:45,400 --> 00:07:48,760 Speaker 2: and not about politics. But we know the temptation for 133 00:07:48,840 --> 00:07:51,920 Speaker 2: every president as you start to come into a tough election, 134 00:07:52,440 --> 00:07:55,680 Speaker 2: if they could control interest rates, it would be to 135 00:07:55,760 --> 00:07:59,120 Speaker 2: roll those interest rates down to deuce the economy, so 136 00:07:59,160 --> 00:08:02,120 Speaker 2: there'd be a lot of cheap money flowing through the 137 00:08:02,200 --> 00:08:06,200 Speaker 2: economy shortly before the election. Now that may work for 138 00:08:06,240 --> 00:08:10,240 Speaker 2: the election, but it's terrible for the economy long term, 139 00:08:10,440 --> 00:08:13,720 Speaker 2: and it undermines confidence in the FED that they are 140 00:08:13,720 --> 00:08:18,720 Speaker 2: making good economic decisions. So Donald Trump looked from the 141 00:08:18,720 --> 00:08:21,680 Speaker 2: first day basically that he got in office, he said 142 00:08:21,720 --> 00:08:24,720 Speaker 2: he wanted to fire Jerome Palell. He's tried to fire 143 00:08:25,160 --> 00:08:28,720 Speaker 2: Lisa Cook. He has openly said that he will not 144 00:08:28,760 --> 00:08:32,280 Speaker 2: appoint anyone to be FED chair who is not willing 145 00:08:32,360 --> 00:08:36,559 Speaker 2: to be a sock puppet that is agree with Donald Trump. 146 00:08:36,679 --> 00:08:40,600 Speaker 2: No matter what Donald Trump says, all of those are 147 00:08:40,600 --> 00:08:46,360 Speaker 2: about Donald Trump exercising control over the FED, destroying FED independence. 148 00:08:46,880 --> 00:08:49,920 Speaker 2: And that's what this probe is. It's a pretext. It's 149 00:08:49,960 --> 00:08:52,280 Speaker 2: a way to try to knock the legs out from 150 00:08:52,360 --> 00:08:56,640 Speaker 2: Jerome Powell. I'm no Jerome Powell supporter, but I am 151 00:08:56,640 --> 00:09:01,839 Speaker 2: a supporter of FED independence and reaponization of the Department 152 00:09:01,920 --> 00:09:06,120 Speaker 2: of Justice is fundamentally wrong. Congress has a role to 153 00:09:06,160 --> 00:09:09,640 Speaker 2: play here. Congress does not have to approve a new 154 00:09:09,800 --> 00:09:14,800 Speaker 2: Federal Reserve chair, and Congress could investigate what the Justice 155 00:09:14,800 --> 00:09:18,240 Speaker 2: Department is up to using its power in a way 156 00:09:18,360 --> 00:09:18,640 Speaker 2: like this. 157 00:09:19,559 --> 00:09:21,800 Speaker 1: Well, you might investigate what brought the President or I 158 00:09:21,800 --> 00:09:24,120 Speaker 1: guess the DOJ to this point. The President, to be clear, 159 00:09:24,160 --> 00:09:26,000 Speaker 1: says he wasn't part of this. But before you leave, 160 00:09:26,040 --> 00:09:29,400 Speaker 1: a Senator, how about Bill Poulty, the FHFA director, was 161 00:09:29,440 --> 00:09:32,319 Speaker 1: with us this morning on Bloomberg. He refuted our own 162 00:09:32,360 --> 00:09:37,920 Speaker 1: reporting that Pulty is the main instigator in these charges 163 00:09:37,960 --> 00:09:40,880 Speaker 1: against Powell and led the President in this direction. If 164 00:09:40,880 --> 00:09:42,760 Speaker 1: you are going to follow up on this, will use 165 00:09:42,800 --> 00:09:46,960 Speaker 1: subpoena Bill Poulty to testify before the Banking Committee. 166 00:09:47,559 --> 00:09:51,120 Speaker 2: I would be very glad to subpoenable Bill Poulta to 167 00:09:51,200 --> 00:09:54,720 Speaker 2: testify for the Senate Banking Committee. Obviously, we need the 168 00:09:54,720 --> 00:09:57,880 Speaker 2: cooperation of the Republicans to get that done. But yes, 169 00:09:58,160 --> 00:10:01,079 Speaker 2: by Gollie, you should come and testify under oath. 170 00:10:02,920 --> 00:10:04,520 Speaker 1: It's great to have you back, Senator. Thank you for 171 00:10:04,559 --> 00:10:07,920 Speaker 1: the time, as always, Elizabeth Warren, the Democrat from Massachusetts, 172 00:10:08,000 --> 00:10:09,000 Speaker 1: on Bloomberg, we thank you