1
00:00:02,520 --> 00:00:07,000
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:07,680 --> 00:00:11,160
Speaker 2: A Republican Congressman French Hill of Arkansas is joining us. He's,

3
00:00:11,200 --> 00:00:15,400
Speaker 2: of course, chair of the House Financial Services Committee. Mister chairman,

4
00:00:15,480 --> 00:00:18,280
Speaker 2: welcome back to Bloomberg TV and Radio. What is your

5
00:00:18,320 --> 00:00:22,160
Speaker 2: expectation as to what exactly is going to happen this evening.

6
00:00:22,239 --> 00:00:24,079
Speaker 2: Will you get a chance to vote on the rule

7
00:00:24,160 --> 00:00:25,200
Speaker 2: and will the rule pass?

8
00:00:26,720 --> 00:00:28,840
Speaker 1: Well, Kayley and Joe, it's great to be back with

9
00:00:28,920 --> 00:00:32,800
Speaker 1: you on this historic day. Look, I think President Trump

10
00:00:33,000 --> 00:00:36,000
Speaker 1: met with a number of members this morning. Speaker Johnson's

11
00:00:36,040 --> 00:00:39,040
Speaker 1: been meeting with members on a regular basis to try

12
00:00:39,080 --> 00:00:42,839
Speaker 1: to clarify the differences between what the Senate did to

13
00:00:42,920 --> 00:00:45,879
Speaker 1: the House bill. I think we'll find a landing spot,

14
00:00:46,240 --> 00:00:49,600
Speaker 1: and I'm optimistic that we'll have the votes ultimately to

15
00:00:49,640 --> 00:00:52,360
Speaker 1: pass this bill so that members can get home to

16
00:00:52,400 --> 00:00:53,920
Speaker 1: their families for the fourth of July.

17
00:00:55,920 --> 00:00:58,200
Speaker 3: It's good to see, mister chairman. Are you calling this

18
00:00:58,360 --> 00:01:00,280
Speaker 3: historic because you think we're actually going to see a

19
00:01:00,320 --> 00:01:03,840
Speaker 3: floor vote here or pass a rule? Or is it

20
00:01:03,880 --> 00:01:06,399
Speaker 3: time to get everybody in a room and consider a

21
00:01:06,440 --> 00:01:09,479
Speaker 3: conference committee. Even the President seems to think that this

22
00:01:09,920 --> 00:01:12,720
Speaker 3: self imposed deadline could slide.

23
00:01:13,400 --> 00:01:16,720
Speaker 1: Well, it's certainly conceivable, and that's certainly one way to

24
00:01:17,120 --> 00:01:20,840
Speaker 1: reconcile the differences between the House and Senate. But these

25
00:01:20,880 --> 00:01:23,160
Speaker 1: are bills, Joe, that have been worked on for over

26
00:01:23,200 --> 00:01:26,520
Speaker 1: a year, and some of these differences between the House

27
00:01:26,560 --> 00:01:30,399
Speaker 1: and Senate, whether it's on salt taxes or on medicaid

28
00:01:30,560 --> 00:01:34,959
Speaker 1: provider taxes or other provisions, are quite well known. And

29
00:01:35,040 --> 00:01:36,760
Speaker 1: I have to say that some of the reasons that

30
00:01:36,840 --> 00:01:41,800
Speaker 1: the spending levels spending cut levels were reduced in the

31
00:01:41,840 --> 00:01:46,160
Speaker 1: Senate is due to the Senate Parliamentarian's rules, and so

32
00:01:46,240 --> 00:01:49,120
Speaker 1: there's nothing that House Freedom Caucus can do about that.

33
00:01:51,400 --> 00:01:54,760
Speaker 2: Well, mister Sharon, we've heard some talk today of what

34
00:01:54,800 --> 00:01:58,120
Speaker 2: these holdouts may look for if it's not changing the

35
00:01:58,160 --> 00:02:01,520
Speaker 2: bill itself in order to secure their vote, like, for example,

36
00:02:01,520 --> 00:02:05,160
Speaker 2: pledges from the President to do executive orders to achieve

37
00:02:05,200 --> 00:02:09,280
Speaker 2: some of their aims, or potentially even a second reconciliation bill.

38
00:02:09,639 --> 00:02:11,639
Speaker 2: But Sir, if it's this hard to do the first

39
00:02:11,680 --> 00:02:14,480
Speaker 2: reconciliation bill, do you think there's any real chance you

40
00:02:14,520 --> 00:02:16,239
Speaker 2: could pull off another one in this Congress.

41
00:02:17,160 --> 00:02:20,040
Speaker 1: Well, in each fiscal year of the House and Senate

42
00:02:20,080 --> 00:02:23,920
Speaker 1: can use budget reconciliation. We can certainly do another reconciliation

43
00:02:24,080 --> 00:02:27,720
Speaker 1: bill after the turn of the fiscal year on October first.

44
00:02:28,440 --> 00:02:32,560
Speaker 1: This one is made difficult by the expiring tax provisions

45
00:02:32,560 --> 00:02:37,640
Speaker 1: from the twenty seventeen Tax Shotcuts and Jobs Act, and

46
00:02:37,919 --> 00:02:42,119
Speaker 1: for the president's goals of reducing taxation on Social Security

47
00:02:42,160 --> 00:02:47,120
Speaker 1: recipients and on tips, and achieving his budget goals for

48
00:02:47,200 --> 00:02:50,919
Speaker 1: both defense and homeland security. One would not face that

49
00:02:51,000 --> 00:02:54,920
Speaker 1: same mix of issues in a budget reconciliation bill that

50
00:02:54,960 --> 00:02:57,200
Speaker 1: we do in the next fiscal year, So I don't

51
00:02:57,200 --> 00:02:58,880
Speaker 1: think you can compare one to the other.

52
00:03:00,360 --> 00:03:03,240
Speaker 3: We talked to your colleague from Ohio today, Jim Jordan,

53
00:03:03,680 --> 00:03:08,040
Speaker 3: who brought the message now or never. Essentially, mister Chairman,

54
00:03:08,360 --> 00:03:10,960
Speaker 3: it's not going to get better, was his point. Based

55
00:03:11,040 --> 00:03:13,240
Speaker 3: on the vote that we saw in the Senate. Listen

56
00:03:13,320 --> 00:03:14,840
Speaker 3: to what Chairman Jordan said.

57
00:03:16,320 --> 00:03:18,119
Speaker 4: You have to kind of figure out how we get

58
00:03:18,120 --> 00:03:21,800
Speaker 4: the votes moderates and conservatives working together. I think we've

59
00:03:21,840 --> 00:03:24,040
Speaker 4: done that, And by the fact that it was fifty

60
00:03:24,080 --> 00:03:27,280
Speaker 4: to fifty in the Senate, I just feel like, Okay,

61
00:03:27,440 --> 00:03:30,000
Speaker 4: there's no more wiggle room. It was fifty to fifty.

62
00:03:30,200 --> 00:03:32,520
Speaker 4: We're gonna have to pass this thing and then look

63
00:03:32,560 --> 00:03:35,280
Speaker 4: for other opportunities down the road to do some additional

64
00:03:35,320 --> 00:03:37,440
Speaker 4: things relative to the deficits and the debt.

65
00:03:38,800 --> 00:03:41,440
Speaker 3: Does he have a point, Congressman, is this as good

66
00:03:41,480 --> 00:03:42,040
Speaker 3: as it gets?

67
00:03:43,720 --> 00:03:46,600
Speaker 1: Well, look, all bills like this are compromises. I think

68
00:03:46,600 --> 00:03:50,400
Speaker 1: he outlines it quite favorably, and I believe this bill

69
00:03:50,600 --> 00:03:53,680
Speaker 1: is the best the two houses can produce, accomplishing both

70
00:03:53,760 --> 00:03:56,920
Speaker 1: President Trump's goals as well as the goals that both

71
00:03:56,920 --> 00:04:00,840
Speaker 1: conservative and more moderate Republicans have in the House. I

72
00:04:00,880 --> 00:04:04,480
Speaker 1: think you see them splitting that difference in what's come

73
00:04:04,560 --> 00:04:07,000
Speaker 1: back from the Senate, and that's why I think that

74
00:04:07,840 --> 00:04:10,400
Speaker 1: cooler heads will prevail and that we'll find the votes

75
00:04:10,440 --> 00:04:14,040
Speaker 1: to move this bill forward. It is historic to cut spending,

76
00:04:14,560 --> 00:04:18,760
Speaker 1: lower the focus on the mandatory spending programs. It'll be,

77
00:04:18,839 --> 00:04:22,480
Speaker 1: for example, in my committee, the first structural change to

78
00:04:22,600 --> 00:04:25,960
Speaker 1: the Consumer Financial Protection Bureau in fifteen years since the

79
00:04:26,000 --> 00:04:28,320
Speaker 1: passage of the Dodd Frank DAK. This is something that

80
00:04:28,480 --> 00:04:31,359
Speaker 1: Republicans have said they've wanted to do for years. We

81
00:04:31,480 --> 00:04:34,840
Speaker 1: passed this bill, we will have done it. Well.

82
00:04:34,880 --> 00:04:36,600
Speaker 2: I want to ask you about some other work your

83
00:04:36,600 --> 00:04:40,760
Speaker 2: committee has ahead once this reconciliation effort is behind you,

84
00:04:40,800 --> 00:04:44,600
Speaker 2: possibly as soon as later this month, mister Chairman, and

85
00:04:44,600 --> 00:04:48,240
Speaker 2: that is crypto legislation. We spoke with Republican Senator Bill

86
00:04:48,240 --> 00:04:50,919
Speaker 2: Haggerty of Tennessee, who of course was spearheading the Genius

87
00:04:50,960 --> 00:04:54,600
Speaker 2: Act that passed the Senate last month, about that stable

88
00:04:54,640 --> 00:04:56,800
Speaker 2: point legislation and what comes next. This is what he

89
00:04:56,839 --> 00:04:59,839
Speaker 2: told us. Certain we'll have a respond It's.

90
00:04:59,680 --> 00:05:02,520
Speaker 5: Going to be complicated here because of two committees that

91
00:05:02,560 --> 00:05:04,280
Speaker 5: have to be involved in this, and it's going to

92
00:05:04,320 --> 00:05:07,360
Speaker 5: take more time. I think my advice to everybody would

93
00:05:07,400 --> 00:05:10,400
Speaker 5: be let's take the win now, let's build momentum, and

94
00:05:10,440 --> 00:05:13,679
Speaker 5: then let's dedicate our time to going further as market

95
00:05:13,720 --> 00:05:16,920
Speaker 5: structure and other opportunities present themselves. But right now, timing

96
00:05:16,960 --> 00:05:18,920
Speaker 5: is critical for a number of reasons. We want to

97
00:05:18,920 --> 00:05:20,599
Speaker 5: get this started. We want to get this moving and

98
00:05:20,640 --> 00:05:23,080
Speaker 5: again open up this new market for digital assets.

99
00:05:24,040 --> 00:05:29,000
Speaker 2: Mister Chairman, he wants stable coin legislation, now market structure legislation. Leader,

100
00:05:29,080 --> 00:05:30,800
Speaker 2: Is that likely what we're going to see out of

101
00:05:30,839 --> 00:05:31,480
Speaker 2: your committee?

102
00:05:32,320 --> 00:05:34,320
Speaker 1: Well, first, let me say that Bill Haggerty has done

103
00:05:34,320 --> 00:05:37,360
Speaker 1: an outstanding job in the Senate being a real voice

104
00:05:37,360 --> 00:05:41,640
Speaker 1: for leadership to find consensus between Republicans and Democrats for

105
00:05:41,720 --> 00:05:44,680
Speaker 1: a dollar back payment stable coin. This is something that

106
00:05:44,680 --> 00:05:47,039
Speaker 1: the House has worked on for years, and we're so

107
00:05:47,160 --> 00:05:50,440
Speaker 1: glad to have strong Senate partners like Chairman Tim Scott,

108
00:05:50,480 --> 00:05:53,520
Speaker 1: Bill Haggerty's sent the alemmas and many many others on

109
00:05:53,560 --> 00:05:56,400
Speaker 1: both sides of the aisle. But it's also a goal

110
00:05:56,400 --> 00:05:59,799
Speaker 1: of President Trump's to have market structure legislation as well.

111
00:06:00,279 --> 00:06:02,159
Speaker 1: So it's my goal as chairman over here in the

112
00:06:02,200 --> 00:06:04,760
Speaker 1: House that we're able to have a legislative strategy that

113
00:06:04,800 --> 00:06:08,320
Speaker 1: produces both for President Trump a clear view on how

114
00:06:08,360 --> 00:06:11,480
Speaker 1: to have a dollar back stable coin using the outstanding

115
00:06:11,520 --> 00:06:14,560
Speaker 1: work by Bill Haggerty and the Senate, and also create

116
00:06:14,920 --> 00:06:18,920
Speaker 1: a market structure framework that gives clarity to market participants,

117
00:06:18,960 --> 00:06:21,840
Speaker 1: brings all this business back to the US. We can

118
00:06:21,880 --> 00:06:25,719
Speaker 1: do both, we will do both, and we're discussion between

119
00:06:25,720 --> 00:06:28,279
Speaker 1: the House and the Senate how best to get that done.

120
00:06:28,600 --> 00:06:31,720
Speaker 3: So, how does that affect the timeline, mister Chairman, If

121
00:06:31,760 --> 00:06:33,720
Speaker 3: you do it all in one, obviously that would take

122
00:06:33,720 --> 00:06:36,239
Speaker 3: a little bit longer. When would you then see President

123
00:06:36,240 --> 00:06:37,680
Speaker 3: Trump's agenda be implemented.

124
00:06:39,040 --> 00:06:41,640
Speaker 1: Well, look, if it takes a little longer, that's a decision.

125
00:06:41,680 --> 00:06:44,800
Speaker 1: The President asked both Tim Scott and I to try

126
00:06:44,800 --> 00:06:48,520
Speaker 1: to achieve both these goals a dollar back payment, stable

127
00:06:48,560 --> 00:06:52,240
Speaker 1: coin and market structure by August first, before the August

128
00:06:52,240 --> 00:06:55,200
Speaker 1: recess and the Congress. That's going to be challenging based

129
00:06:55,240 --> 00:06:59,480
Speaker 1: on the time we're using on budget reconciliation and other priorities.

130
00:07:00,000 --> 00:07:02,480
Speaker 1: So we're working to find the best strategy to get

131
00:07:02,480 --> 00:07:05,400
Speaker 1: those to the President's desk as soon as possible. That

132
00:07:05,440 --> 00:07:07,920
Speaker 1: goal has not changed since January twentieth, and we're hard

133
00:07:07,920 --> 00:07:08,200
Speaker 1: at it.

134
00:07:09,960 --> 00:07:12,960
Speaker 2: And finally, mister Chairman, and we discussed this with Chairman

135
00:07:13,080 --> 00:07:16,960
Speaker 2: Jordan today as well. Bill Poulty, who leaves the ff FHFA,

136
00:07:17,000 --> 00:07:19,440
Speaker 2: has called for an investigation into the chair of the

137
00:07:19,480 --> 00:07:23,360
Speaker 2: Federal Reserved Aerom Powell. Chairman Jordan suggested the Judiciary Committee

138
00:07:23,640 --> 00:07:25,480
Speaker 2: might take a look at that. But do you have

139
00:07:25,520 --> 00:07:28,760
Speaker 2: a view as to whether or not Chairman Powell should

140
00:07:28,880 --> 00:07:30,600
Speaker 2: face a congressional investigation.

141
00:07:31,920 --> 00:07:35,440
Speaker 1: Well, I didn't see mister Poulty's charges or the assertions,

142
00:07:35,480 --> 00:07:37,480
Speaker 1: so I don't have any comment on what he said.

143
00:07:37,840 --> 00:07:41,240
Speaker 1: We just had Chairman Powell before our committee and the

144
00:07:41,280 --> 00:07:43,960
Speaker 1: Senate Banking Committee last week, and I set up a

145
00:07:44,040 --> 00:07:47,320
Speaker 1: special task force for this Congress, led by Frank Lucas

146
00:07:47,360 --> 00:07:51,960
Speaker 1: of Oklahoma, to look at the monetary policy decisions taken

147
00:07:52,000 --> 00:07:53,960
Speaker 1: by the FED since two thousand and eight in the

148
00:07:53,960 --> 00:07:57,160
Speaker 1: financial crisis, and also look at the resiliency of US

149
00:07:57,240 --> 00:08:01,120
Speaker 1: treasury markets. Those are both well underway well led by

150
00:08:01,200 --> 00:08:02,800
Speaker 1: Frank Lucas of Oklahoma.

151
00:08:04,560 --> 00:08:06,760
Speaker 3: It's great to have you back with US Republican Congressman

152
00:08:06,800 --> 00:08:10,520
Speaker 3: French Hill of Arkansas, who chairs the House Financial Services Committee.

153
00:08:10,600 --> 00:08:13,000
Speaker 3: Good luck if it's a late night, mister Chairman. We'd

154
00:08:13,040 --> 00:08:15,080
Speaker 3: love to stay in touch if you want to