WEBVTT - Trump Directs Federal Job Cuts; Musk Defends Downsizing

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning.

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<v Speaker 3>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 3>stories we're following today.

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<v Speaker 2>Karen, we begin in Washington, where President Trump has directed

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<v Speaker 2>federal agencies to comply with job cuts led by Elon

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<v Speaker 2>Musk and his so called Department of Government Efficiency. A

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<v Speaker 2>White House fact sheet seen by Bloomberg shows agencies will

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<v Speaker 2>be permitted to hire no more than one employee for

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<v Speaker 2>every four that leave, and they'll have to limit hiring

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<v Speaker 2>to essential positions. As heard here on Bloomberg Radio, the

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<v Speaker 2>President spoke to reporters in the Oval Office.

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<v Speaker 4>I hope that the court system is going to allow

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<v Speaker 4>us to do what we have to do we got

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<v Speaker 4>elected to, among other things, all of this fraud abuse,

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<v Speaker 4>all of this this horrible stuff going on, and we've

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<v Speaker 4>already found billions of does not like a little bit,

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<v Speaker 4>billions many billions of dough.

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<v Speaker 3>And standing alongside President Trump in the Oval Office was

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<v Speaker 3>the world's richest man. Elon Musk defended his cost cutting approach,

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<v Speaker 3>which did involve obtaining access to sensitive computer systems and

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<v Speaker 3>employee data.

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<v Speaker 5>Your tax dollars need to be spent wisely on the

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<v Speaker 5>things that matter to the people. I mean these things

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<v Speaker 5>like it's just common sense. It's not draconian or radical.

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<v Speaker 5>I think it's it's really just saying, best look at

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<v Speaker 5>each of these expenditors and say, is this actually in

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<v Speaker 5>the best interest to the people, and if it is,

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<v Speaker 5>it's proved not, we should think about it.

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<v Speaker 3>Elon Musk also increased attacks on federal officials and judges,

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<v Speaker 3>who he says are stalling progress and cost cutting, but

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<v Speaker 3>he also says he expects resistance.

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<v Speaker 5>I fully expect to be scrutinized and get a daily

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<v Speaker 5>proctology exam.

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<v Speaker 3>Basically, and must call for the impeachment of some officials.

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<v Speaker 3>He says they're being corrupt and activist and.

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<v Speaker 2>Karen one of the world's most successful multi strategy hedge

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<v Speaker 2>fund founders, Ken Griffin, is praising Elon musk efforts. The

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<v Speaker 2>Citadel CEO spoke at the UBS Financial Services Conference in Miami.

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<v Speaker 6>This is a man who slept on the floor of

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<v Speaker 6>his factory to make sure testls got produced. He will

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<v Speaker 6>do what it takes to win. We want people who

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<v Speaker 6>are in Washington who will.

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<v Speaker 2>Do what it takes to help the American taxpayer and

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<v Speaker 2>the American people Win Citadel CEO Ken Griffin, though did

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<v Speaker 2>criticize President Trump's approach to tariffs. He says the trade

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<v Speaker 2>plans dull the country's competitive edge and breed mistrust amongst

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<v Speaker 2>allies Nathan.

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<v Speaker 3>Many on the Democratic side of the aisle have not

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<v Speaker 3>been as supportive of the administration's efforts. Massachusetts Senator Elizabeth

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<v Speaker 3>Warren tells Bloomberg Balance of Power that Elon musk move

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<v Speaker 3>to shut down us AID is effectively a move to

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<v Speaker 3>shut down the government. Donald Trump, through his co president

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<v Speaker 3>Elon Musk, is in the business of trying to shut

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<v Speaker 3>down the government right now and doing so illegally. Senator

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<v Speaker 3>Elizabeth Warren also accused tru Ump and Musk of effectively

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<v Speaker 3>sidelining the nation's financial cops by shutting down the Consumer

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<v Speaker 3>Financial Protection Bureau. Here Senator Warren's full conversation with Bloomberg's

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<v Speaker 3>Joe Matthew and Kayley Lines on the Bloomberg Talks podcast

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<v Speaker 3>feed then Karen.

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<v Speaker 2>Senator Warren's comments come as The Wall Street Journal reports

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<v Speaker 2>the Trump administration is looking into plans to consolidate the

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<v Speaker 2>power of banking regulators without congressional approval. The journal says

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<v Speaker 2>administration officials are looking into whether they can collapse the

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<v Speaker 2>Federal Deposit Insurance Corporation the FDIC, into the Treasury Department.

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<v Speaker 2>The report says staff inside the FDIC and the Office

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<v Speaker 2>of the Controller of the Currency expect to hear from

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<v Speaker 2>the Department of Government Efficiency soon.

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<v Speaker 3>Meanwhile, on Capitol Hill yesterday, Nathan Senators heard from a

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<v Speaker 3>Federal Reserve Chair Jerome Powell, who testify to the Senate

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<v Speaker 3>Banking Committee. Powell told them he thinks the Central Bank

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<v Speaker 3>does not need to rush to lower rates.

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<v Speaker 7>As the economy evolves. We will adjust our policy stamps

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<v Speaker 7>in a manner that best promotes our maximum employment and

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<v Speaker 7>priced ability goals. If the economy remains strong and inflation

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<v Speaker 7>does not continue to move sustainably toward two percent, we

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<v Speaker 7>can maintain policy restrained for longer.

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<v Speaker 3>Von yields climbed after Fed Chair j Powell's comments, Markets

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<v Speaker 3>are pricing in around thirty three basis points of cuts

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<v Speaker 3>in twenty twenty five, with the next move not expected

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<v Speaker 3>until September. Powell will testify in the House today. Stay

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<v Speaker 3>with Bloomberg for full coverage of his remarks starting at

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<v Speaker 3>ten am Wall Street time on Bloomberg Radio and the

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<v Speaker 3>Bloomberg's podcast page on YouTube.

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<v Speaker 2>Well ahead of all that, Karen, investors will have a

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<v Speaker 2>key economic report to digest this morning. The Consumer Price Index,

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<v Speaker 2>says do out at eight thirty am Wall Street Time.

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<v Speaker 2>Let's get a preview now from Bloomberg's John Tucker. So, John,

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<v Speaker 2>what are we expecting?

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<v Speaker 8>Well?

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<v Speaker 9>Inflation Nathan proving to be stubborn as a mule. When

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<v Speaker 9>you strip out more vulnerable components, economists suspected jump three

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<v Speaker 9>tenths of eight percent month over month at three point

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<v Speaker 9>one percent on a yearly basis. Now, remember the federal

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<v Speaker 9>reserves target is two percent. If those turn out to

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<v Speaker 9>be the number in this morning's report, the Fed will

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<v Speaker 9>be in no rush to cut of indust rates. As

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<v Speaker 9>Chairman Pale indicated, January would mark the fifth month in

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<v Speaker 9>the last six that the core CPI has advanced three

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<v Speaker 9>tenths of a percent. That is consistent with stalled progress

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<v Speaker 9>and reducing inflation. The overall CPI probably will be driven

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<v Speaker 9>by higher prices for energy and food, most notably eggs.

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<v Speaker 9>Keep in mind, too, that a lot of companies and

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<v Speaker 9>service providers they tend to hike prices and fees at

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<v Speaker 9>the start of the year when consumers seem to be

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<v Speaker 9>more willing to absorb the extra costs. In New York,

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<v Speaker 9>I'm John Tucker, Bloomberg Radio.

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<v Speaker 3>All right, John, thank you. In addition to CPI, traders

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<v Speaker 3>continue to follow FED speak to get hints on the

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<v Speaker 3>path of interest rates. Yesterday, New York Fed President John

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<v Speaker 3>Williams said he expects inflation to slow toward two percent,

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<v Speaker 3>but notes that policy related on certainty clouds the economic outlook.

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<v Speaker 3>Williams added he'll closely watch prices to assess the impact

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<v Speaker 3>on tariffs. Today, traders will hear from Atlanta FED President

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<v Speaker 3>Raphael Bostik and Fedgunir Christopher Waller.

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<v Speaker 2>On the geopolitical front, careen, President Trump is hailing the

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<v Speaker 2>release of American Mark Fogel. The schoolteacher had been detained

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<v Speaker 2>in Russia since twenty twenty one. Fogel was at the

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<v Speaker 2>White House after his release.

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<v Speaker 10>The super organism of people that came to my support

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<v Speaker 10>and the love that I was given sustain me for

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<v Speaker 10>three and a half years, and.

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<v Speaker 2>Mark Fogel is calling President Trump a hero. The President

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<v Speaker 2>says the terms of Fogel's release were very fair, but

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<v Speaker 2>he didn't go into specifics. Trump says he hopes the

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<v Speaker 2>move will allow Russia to work toward ending the war

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<v Speaker 2>in Ukraine well Nathan.

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<v Speaker 3>President Trump also backed off threats to withhold aid from

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<v Speaker 3>Jordan after King of Dullah agreed to accept two thousand

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<v Speaker 3>ill children from Gaza. Trump had threatened to withhold aid

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<v Speaker 3>from Jordan and Egypt ahead of the King's visit Tuesday

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<v Speaker 3>should the countries not accept Palestinian refugees. President Trump reiterated

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<v Speaker 3>plans for the US to take ownership of Gaza and

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<v Speaker 3>for Jordan and Egypt to absorb Palestinians, which Arab states

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<v Speaker 3>are firmly against, and Trump's warning that Israel's break and

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<v Speaker 3>Trump's warning that Israel break it ceasefire if AMOST delays

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<v Speaker 3>the release of hostages by Saturday.

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<v Speaker 2>Finally, Karen Apple has renamed the Gulf of Mexico the

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<v Speaker 2>Gulf of America on its Apple Maps app. That follows

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<v Speaker 2>the executive order the President Trump signed on his first

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<v Speaker 2>day in office to change the name of the body

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<v Speaker 2>of water. Comes after the US government updated its official

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<v Speaker 2>map to reflect the new name as well. Alphabet's Google

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<v Speaker 2>has made a similar update to its Google Maps, so

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<v Speaker 2>has Microsoft's bing Maps.

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<v Speaker 3>Time now for look at some of the other stories

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<v Speaker 3>making news in New York and around the world. And

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<v Speaker 3>for that we're joined by Bloomberg's Michael bar Michael, good morning.

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<v Speaker 8>Good morning, Karen. The morning commute could be a bit

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<v Speaker 8>tricky after more winter weinther accumulating snow will linger into

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<v Speaker 8>this morning. For New York City and central New Jersey.

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<v Speaker 8>The snowfall began last night north and west of the city.

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<v Speaker 8>I barely got snow, if any, but in southern New

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<v Speaker 8>Jersey close to a half a foot fell, where a

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<v Speaker 8>winter storm warning was issued tonight. A new system light

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<v Speaker 8>snow returns, changing the rain over night and could cause

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<v Speaker 8>some icing problems before the rain ends Thursday morning. Meanwhile,

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<v Speaker 8>in Washington, d C. A winter's Storm warning remains in

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<v Speaker 8>effect until seven am. Heavy snow has also been falling

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<v Speaker 8>in mid Atlantic states. This first responder is with the

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<v Speaker 8>fire department in the Potomac Mills area of Virginia. If

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<v Speaker 8>you don't need to drive, you should be off the roads.

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<v Speaker 8>One of the biggest things that I've seen is that

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<v Speaker 8>a lot of accidents happen from people not being properly prepared.

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<v Speaker 8>He called it the most difficult fifteen months of his life.

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<v Speaker 8>New York Mayor Eric Adams denied that he broke the

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<v Speaker 8>law in his first public remarks since the Justice Department

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<v Speaker 8>instructed Manhattan federal prosecutors to drop the corruption case he faced.

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<v Speaker 8>Adams also says he realizes as many New Yorkers do

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<v Speaker 8>not trust.

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<v Speaker 11>Him no, but I must continue to regain your trust.

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<v Speaker 11>I have learned a lot over the last year, and

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<v Speaker 11>this experience has been humbling many or.

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<v Speaker 8>Adams went on to say we can put this cruel

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<v Speaker 8>episode behind us. President Trump's longtime confident, Steve Bannon, pleaded

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<v Speaker 8>guilty to a fraud charge relating to duping donors who

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<v Speaker 8>gave money to a fundraiser to build a wall along

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<v Speaker 8>the southern border. The plea deal means Bannon avoids jail time.

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<v Speaker 8>After yesterday's court hearing, Bannon said New York's law enforcers

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<v Speaker 8>should be investigated.

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<v Speaker 12>I'm calling on right now the Attorney General Pam Bonnie

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<v Speaker 12>to begin an immediate criminal investigation to Letitia James Alvin

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<v Speaker 12>Bragg Oliver for what they did to President Trump.

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<v Speaker 8>Finally, a dog from the Working Group is named beston

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<v Speaker 8>Show at the Westminster Kennel Club Dog.

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<v Speaker 3>Show for Beston's Show at the one and forty ninth

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<v Speaker 3>annual Westminster Kennel Club Dog Show.

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<v Speaker 5>I choose the Giant Sall.

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<v Speaker 8>The Giant Snauzer from New Jersey won the award at

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<v Speaker 8>New York's Madison Square Garden last night. Global News twenty

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<v Speaker 8>four hours a day and whenever you won it with

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<v Speaker 8>the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg.

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<v Speaker 3>Herron Monty from New Jersey. I love it. Thank you,

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<v Speaker 3>Michael Barr. Time now for the Bloomberg Sports Update. Brownt

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<v Speaker 3>to you. I Tri State Outie. Here's John stash Hour,

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<v Speaker 3>John good lerning.

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<v Speaker 10>Thanks.

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<v Speaker 1>Karrent's top team in college basketball, the Auburn Tigers coming off.

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<v Speaker 1>I lost to Florida, but still ranked number one and

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<v Speaker 1>now twenty two and two with an eighty to sixty

0:10:34.120 --> 0:10:37.840
<v Speaker 1>eight win at Vanderbilt. Saturday, Auburn visits our tribal Alabamo,

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<v Speaker 1>who's ranked number two. Crimson tie twenty one and three,

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<v Speaker 1>Blue Out Texas one O three to eighty. Clayton Kershaw,

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<v Speaker 1>at age thirty six, will be back for an eighteenth

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<v Speaker 1>season with the LA Dodgers. He had knee and toe

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<v Speaker 1>injuries last season, only pitched seven games. That's a Bloomberg Sports.

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<v Speaker 6>Update Coast to coast.

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<v Speaker 2>I'm Bloomberg Radio Nition White on Sirius XM and around

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<v Speaker 2>the world on Bloomberg dot Com and the Bloomberg Business app.

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<v Speaker 6>This is Bloomberg Daybreak.

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<v Speaker 2>President Donald Trump is moving ahead with his push to

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<v Speaker 2>slash the size of the federal government. He assigned in

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<v Speaker 2>executive order for agencies to work with Elon Musk and

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<v Speaker 2>his Department of Government Efficiency and to hire no more

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<v Speaker 2>than one person for every four who leave the federal government.

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<v Speaker 2>Elon Musk was in the Oval Office as the President

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<v Speaker 2>issued that directive.

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<v Speaker 5>The people voted for major government reform, and that's what

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<v Speaker 5>people are going to get. They're going to get what

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<v Speaker 5>they voted for and for more.

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<v Speaker 2>This morning, we are joined by Terry Haynes, the founder

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<v Speaker 2>of Pangea Policy. It's great to speak with you this

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<v Speaker 2>morning after we saw that rare appearance from Elon Musk

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<v Speaker 2>defending the so called Doge effort, but at the same

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<v Speaker 2>time saying that you know, with all the revelations that

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<v Speaker 2>he's put online, there are going to be some mistakes

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<v Speaker 2>that he's going to need to be corrected. Is a

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<v Speaker 2>move fast and break things model the right approach when

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<v Speaker 2>it comes to reigning in the federal government.

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<v Speaker 6>Terry, good morning, Good morning, Nathan. I think what they've

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<v Speaker 6>concluded before the inauguration is that it's pretty much the

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<v Speaker 6>only way. One of the older adages of Washington has

0:12:11.080 --> 0:12:15.000
<v Speaker 6>never let process be the issue, and lots and lots

0:12:15.040 --> 0:12:18.160
<v Speaker 6>of presidents have followed that in pursuit of bigger goals.

0:12:18.760 --> 0:12:21.600
<v Speaker 6>Ronald Reagan, for example, came in in part on the

0:12:21.640 --> 0:12:27.040
<v Speaker 6>expectation that from his supporters that he'd do something broadly

0:12:27.080 --> 0:12:31.600
<v Speaker 6>similar to what's happening today. But they concluded that that

0:12:31.679 --> 0:12:33.760
<v Speaker 6>was going to actually break things. He didn't have the

0:12:33.760 --> 0:12:37.520
<v Speaker 6>political support for it or the political environment for it

0:12:37.600 --> 0:12:40.679
<v Speaker 6>with one House Democratic, and what would have you know

0:12:40.840 --> 0:12:42.800
<v Speaker 6>ended up happening is he ended up focusing on big

0:12:42.800 --> 0:12:47.480
<v Speaker 6>policy issues and kind of let the the machinery of

0:12:47.640 --> 0:12:51.240
<v Speaker 6>Washington aside. Same thing right before nine to eleven, Don

0:12:51.320 --> 0:12:55.480
<v Speaker 6>Rumsfeld wanted to end the Pentagon's a lot of waste,

0:12:55.520 --> 0:12:58.440
<v Speaker 6>fraud and abuse, and the next day we had nine

0:12:58.480 --> 0:13:00.200
<v Speaker 6>to eleven and that was the end of it. But

0:13:00.920 --> 0:13:03.360
<v Speaker 6>here I think they've decided this is the only way

0:13:03.400 --> 0:13:06.280
<v Speaker 6>to do things, and if they end up with seventy

0:13:06.280 --> 0:13:10.559
<v Speaker 6>five percent of what they propose and try to achieve

0:13:10.960 --> 0:13:12.200
<v Speaker 6>that'll be a good time for them.

0:13:12.640 --> 0:13:15.080
<v Speaker 2>Is it really the only way, though, Terry. I mean,

0:13:15.120 --> 0:13:19.560
<v Speaker 2>we've already seen the massive amount of lawsuits that have

0:13:19.280 --> 0:13:22.920
<v Speaker 2>put up against the DOJE effort, and lots of criticism

0:13:23.559 --> 0:13:26.360
<v Speaker 2>from Democrats as well when it comes to these ideas

0:13:26.400 --> 0:13:29.000
<v Speaker 2>that have been thrown out of you know, shutting down

0:13:29.440 --> 0:13:33.720
<v Speaker 2>certain agencies that have Congressional approval and would presumably need

0:13:33.800 --> 0:13:36.240
<v Speaker 2>Congress to say so to get rid of.

0:13:37.160 --> 0:13:41.640
<v Speaker 6>Well, these days, there will always be lawsuits, and I

0:13:41.640 --> 0:13:45.520
<v Speaker 6>would note for the audience that it's they're just injunctions.

0:13:46.040 --> 0:13:49.319
<v Speaker 6>What will end up happening is these things go fully litigated.

0:13:49.480 --> 0:13:52.679
<v Speaker 6>And that's fine. They expected that. I think Trump now

0:13:52.720 --> 0:13:55.080
<v Speaker 6>has said twice this week you know he expects that,

0:13:55.160 --> 0:14:00.640
<v Speaker 6>and he's pretty even keeled about it. They think that.

0:14:00.880 --> 0:14:03.600
<v Speaker 6>The second thing is that the machinery of Washington today

0:14:03.600 --> 0:14:07.200
<v Speaker 6>with the tiny Republican majorities, is one where you can't

0:14:07.280 --> 0:14:12.240
<v Speaker 6>get efficiencies done quickly and effectively. You know, whether it

0:14:12.320 --> 0:14:16.640
<v Speaker 6>be collapsing departments or agencies or anything else. And you know,

0:14:17.000 --> 0:14:18.920
<v Speaker 6>when you need sixty votes in the Senate, it's just

0:14:18.920 --> 0:14:22.360
<v Speaker 6>not going to happen. So there's that. Finally, you know,

0:14:22.400 --> 0:14:25.040
<v Speaker 6>what they're looking at is a situation where you know,

0:14:25.120 --> 0:14:28.640
<v Speaker 6>the government, excuse me, the public has long since supported

0:14:29.240 --> 0:14:33.000
<v Speaker 6>the idea of pursuing efficiencies in government, thank you. And

0:14:33.040 --> 0:14:36.040
<v Speaker 6>I talked a couple of months ago about this brewing

0:14:36.080 --> 0:14:38.840
<v Speaker 6>DOJE idea, and I said, look, I'm you know, they

0:14:38.920 --> 0:14:42.200
<v Speaker 6>want to get two billion or excuse me, two trillion efficiencies.

0:14:42.240 --> 0:14:44.680
<v Speaker 6>I guarantee you they can find half of that right

0:14:44.720 --> 0:14:49.520
<v Speaker 6>off the top, and they're they're working on that, you know.

0:14:49.640 --> 0:14:53.280
<v Speaker 6>But finally, I would also point out that they're not

0:14:53.400 --> 0:14:57.080
<v Speaker 6>talking about ending entire programs. They're not talking about ending

0:14:57.120 --> 0:14:59.240
<v Speaker 6>for an aid for example. What they're trying to do

0:14:59.360 --> 0:15:01.360
<v Speaker 6>is is you know, I would look at it as

0:15:01.440 --> 0:15:04.800
<v Speaker 6>essentially kind of purifying the stream and making sure that

0:15:05.440 --> 0:15:08.280
<v Speaker 6>the dollars that are going where they're supposed to go

0:15:08.320 --> 0:15:11.720
<v Speaker 6>are going for proper things and not for the long

0:15:11.800 --> 0:15:14.720
<v Speaker 6>laundry list parade of horribles that we've seen earlier.

0:15:15.160 --> 0:15:16.960
<v Speaker 2>There's still going to be a lot of question, isn't

0:15:17.000 --> 0:15:20.960
<v Speaker 2>there about whether Elon Musk should be leading this effort.

0:15:21.320 --> 0:15:25.080
<v Speaker 2>He's been named a special government employee, but he hasn't

0:15:25.120 --> 0:15:29.360
<v Speaker 2>been confirmed by the Senate. His position doesn't require Senate

0:15:29.400 --> 0:15:33.880
<v Speaker 2>confirmation because there's a question still, isn't there about what

0:15:34.040 --> 0:15:36.440
<v Speaker 2>exactly that position is. We got about a minute left.

0:15:37.080 --> 0:15:39.800
<v Speaker 6>Yeah, there are questions about that, and they're going to

0:15:39.800 --> 0:15:43.600
<v Speaker 6>be questions about that. You know, I'd say that the

0:15:43.640 --> 0:15:46.680
<v Speaker 6>two things. One is that you know, people that are

0:15:47.080 --> 0:15:51.000
<v Speaker 6>focusing on Musk Qualm Musk are missing the point. It's

0:15:51.120 --> 0:15:53.360
<v Speaker 6>you know, you're not We're not in a situation here

0:15:53.800 --> 0:15:58.400
<v Speaker 6>where the president has been supplanned somehow, or in a

0:15:58.440 --> 0:16:02.040
<v Speaker 6>situation where the president very clearly is saying, you know,

0:16:02.080 --> 0:16:03.800
<v Speaker 6>this is a guy who's doing this job before me

0:16:03.960 --> 0:16:07.800
<v Speaker 6>and subject to my approval. The other thing is, you know,

0:16:07.840 --> 0:16:10.040
<v Speaker 6>there's a political dimension to this, and the political dimension

0:16:10.160 --> 0:16:14.320
<v Speaker 6>hugely favors Republicans. On this Democratic Party is essentially split

0:16:14.400 --> 0:16:16.200
<v Speaker 6>right down the middle on whether they had to be

0:16:16.200 --> 0:16:21.640
<v Speaker 6>spending time on nattering on about Musk or actually getting

0:16:21.680 --> 0:16:25.520
<v Speaker 6>around a series of issues that actually help average people.

0:16:25.680 --> 0:16:28.560
<v Speaker 6>And you know, the folks who are going on and

0:16:28.560 --> 0:16:31.280
<v Speaker 6>on about Musk like this is some great constitutional crisis,

0:16:31.280 --> 0:16:33.080
<v Speaker 6>I think are missing a much bigger point.

0:16:33.880 --> 0:16:36.800
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