1 00:00:02,360 --> 00:00:06,720 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:11,640 --> 00:00:15,440 Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 3 00:00:15,480 --> 00:00:18,680 Speaker 2: with Lisa Bromwitz and Amrie Hordert. Join us each day 4 00:00:18,720 --> 00:00:22,280 Speaker 2: for insight from the best in markets, economics, and geopolitics 5 00:00:22,400 --> 00:00:24,880 Speaker 2: from our global headquarters in New York City. We are 6 00:00:24,920 --> 00:00:27,680 Speaker 2: live on Bloomberg Television weekday mornings from six to nine 7 00:00:27,720 --> 00:00:31,280 Speaker 2: am Eastern. Subscribe to the podcast on Apple, Spotify or 8 00:00:31,320 --> 00:00:33,919 Speaker 2: anywhere else you listen, and as always on the Bloomberg 9 00:00:34,000 --> 00:00:37,280 Speaker 2: Terminal and the Bloomberg Business app. Henrietta trees of Vader 10 00:00:37,320 --> 00:00:40,519 Speaker 2: Partner's writing. At this point, a partial shutdown of the 11 00:00:40,520 --> 00:00:43,720 Speaker 2: federal government on January thirty one appears hardly likely. However, 12 00:00:44,080 --> 00:00:46,960 Speaker 2: there is bipartisan support for limiting the shutdown to just 13 00:00:47,360 --> 00:00:51,239 Speaker 2: the Department of Homeland Security. Henrietta joins us now for more. Henrietta, 14 00:00:51,280 --> 00:00:55,520 Speaker 2: Welcome to the program. Immigration enforcement. The President won the argument, 15 00:00:55,880 --> 00:01:00,080 Speaker 2: he won the election. Is he now losing the country? 16 00:01:00,200 --> 00:01:01,200 Speaker 3: I think that's pretty clear. 17 00:01:01,240 --> 00:01:04,040 Speaker 4: And you have a whole bunch of Republicans, especially those 18 00:01:04,080 --> 00:01:08,520 Speaker 4: that are in very at risk states, coming out clearly 19 00:01:08,640 --> 00:01:11,679 Speaker 4: condemning the moves from Ice that resulted in the death 20 00:01:11,720 --> 00:01:14,800 Speaker 4: of Alex Preedy over the weekend, and that kind of 21 00:01:14,880 --> 00:01:17,760 Speaker 4: disruption and the fracture and the Republican Party is how 22 00:01:17,760 --> 00:01:20,640 Speaker 4: you know that things need to change from the status 23 00:01:20,720 --> 00:01:23,960 Speaker 4: quo that we have right now. I think, in addition, 24 00:01:24,360 --> 00:01:27,280 Speaker 4: the personnel swaps that the White House is trying to 25 00:01:28,040 --> 00:01:30,959 Speaker 4: do in Minnesota are just not sufficient. I was speaking 26 00:01:30,959 --> 00:01:34,200 Speaker 4: with some Minnesotas last night and they don't see a 27 00:01:34,360 --> 00:01:38,920 Speaker 4: difference between Bovino and Home End. So they need to 28 00:01:38,920 --> 00:01:41,039 Speaker 4: see quite a bit more out of the White House 29 00:01:41,240 --> 00:01:44,080 Speaker 4: than what is currently on the table. The solution is 30 00:01:44,080 --> 00:01:48,600 Speaker 4: actually pretty simple from a Senate procedural process, and from 31 00:01:48,600 --> 00:01:52,200 Speaker 4: a House process. It's maybe technically difficult. You got to 32 00:01:52,200 --> 00:01:54,560 Speaker 4: get those members back, as Tyler was just mentioning, but 33 00:01:54,840 --> 00:01:57,880 Speaker 4: you strip out the DHS funding from the underlying package 34 00:01:57,880 --> 00:02:01,120 Speaker 4: of bills, get unanimous consent in the Senate to do that, 35 00:02:01,240 --> 00:02:04,520 Speaker 4: move ahead, and you avoid a shutdown of the Defense Department, 36 00:02:04,560 --> 00:02:07,360 Speaker 4: a shutdown to the Labor Department, and we proceed to 37 00:02:07,800 --> 00:02:09,560 Speaker 4: just focus on Ice Henrietta. 38 00:02:09,639 --> 00:02:11,000 Speaker 5: Just two weeks ago, you had an odds of a 39 00:02:11,040 --> 00:02:14,240 Speaker 5: government shut down twenty five percent. Now they skyrocketed, So 40 00:02:14,360 --> 00:02:16,520 Speaker 5: you think now, what is the percentage that we will 41 00:02:16,520 --> 00:02:19,840 Speaker 5: shut down on Friday? And how long will the shutdown be? 42 00:02:19,840 --> 00:02:22,400 Speaker 5: Because remember we just got over in the fall, the 43 00:02:22,480 --> 00:02:24,240 Speaker 5: longest ever government shutdown. 44 00:02:25,440 --> 00:02:27,799 Speaker 4: I hear a lot of optimism behind the scenes from 45 00:02:27,840 --> 00:02:30,919 Speaker 4: Democrats and Republicans that the path forward, as I just mentioned, 46 00:02:31,000 --> 00:02:31,800 Speaker 4: is pretty simple. 47 00:02:32,080 --> 00:02:33,760 Speaker 3: You just strip out DHS funding. 48 00:02:34,160 --> 00:02:37,359 Speaker 4: And the problems for the White House is really optics. 49 00:02:37,360 --> 00:02:39,360 Speaker 4: They have to sort of admit that there was a 50 00:02:39,400 --> 00:02:43,320 Speaker 4: catastrophe in Minnesota and there needs to be remedies here 51 00:02:43,360 --> 00:02:46,359 Speaker 4: and restrictions put on ice. The White House is tacitly 52 00:02:46,400 --> 00:02:49,640 Speaker 4: acknowledging that already with the personnel moves. But my base 53 00:02:49,720 --> 00:02:52,239 Speaker 4: case expectation is that they do find an off ramp here. 54 00:02:52,360 --> 00:02:55,720 Speaker 4: Neither Republicans nor Democrats want this shutdown to happen, which 55 00:02:55,760 --> 00:02:58,519 Speaker 4: is very different than the October first shutdown that we 56 00:02:58,560 --> 00:02:59,240 Speaker 4: saw last year. 57 00:02:59,280 --> 00:03:02,400 Speaker 5: Well, the President so called Governor Waltz yesterday and the 58 00:03:02,440 --> 00:03:05,080 Speaker 5: mayor of Minnesota. Does that bode well for the White 59 00:03:05,120 --> 00:03:06,480 Speaker 5: House or for Democrats? 60 00:03:06,520 --> 00:03:07,400 Speaker 6: He's the one making that. 61 00:03:07,440 --> 00:03:10,520 Speaker 4: Outreach, you know, I think this is a case where 62 00:03:10,560 --> 00:03:13,120 Speaker 4: the American public is demanding change, and both sides are 63 00:03:13,120 --> 00:03:16,200 Speaker 4: prepared to give a little bit. Whether that's going to 64 00:03:16,240 --> 00:03:20,040 Speaker 4: be sufficient to get you changed to peace of legislation 65 00:03:20,080 --> 00:03:23,320 Speaker 4: on the floor remains to be seen. But every side 66 00:03:23,480 --> 00:03:26,880 Speaker 4: is recognizing that the killings have to stop, and it's 67 00:03:27,080 --> 00:03:30,960 Speaker 4: so overwhelming in public polling that it's just obvious you 68 00:03:31,000 --> 00:03:33,400 Speaker 4: need to put your partisanship aside. You can't be talking 69 00:03:33,440 --> 00:03:36,040 Speaker 4: about the Second Amendment, you can't be talking about ICEL 70 00:03:36,040 --> 00:03:37,080 Speaker 4: like it's okay right now. 71 00:03:37,120 --> 00:03:38,800 Speaker 3: You got to move forward from both sides. 72 00:03:38,880 --> 00:03:41,000 Speaker 5: So if we have this off RAM but the DHS 73 00:03:41,040 --> 00:03:43,880 Speaker 5: funding stripped out, what do Democrats need to see to 74 00:03:43,960 --> 00:03:48,240 Speaker 5: then sign up for DHS funding because majority leader Fund's 75 00:03:48,280 --> 00:03:49,880 Speaker 5: going to need them to pass that through at the 76 00:03:49,960 --> 00:03:50,480 Speaker 5: end of the day. 77 00:03:51,320 --> 00:03:54,160 Speaker 4: Yeah, absolutely, I think that Democrats are still pulling together 78 00:03:54,400 --> 00:03:56,840 Speaker 4: a concrete list of what they want. There were some 79 00:03:56,880 --> 00:04:00,480 Speaker 4: conference calls throughout the day yesterday. I think the most 80 00:04:00,600 --> 00:04:04,680 Speaker 4: extreme is probably for DHS head Christy Noam to resign, 81 00:04:05,080 --> 00:04:07,960 Speaker 4: and that's definitely going to be something that stays on 82 00:04:08,000 --> 00:04:12,160 Speaker 4: the front burner. She's actually scheduled to testify on March third, 83 00:04:12,200 --> 00:04:14,760 Speaker 4: if I'm not mistaken, so her time in the spotlight 84 00:04:14,840 --> 00:04:17,280 Speaker 4: hasn't really even begun yet, and I think that's going 85 00:04:17,360 --> 00:04:20,720 Speaker 4: to be a major point of focus for the Democrats, 86 00:04:21,000 --> 00:04:23,080 Speaker 4: and it's a convenient out for a lot of the 87 00:04:23,080 --> 00:04:25,960 Speaker 4: Republicans who want to see some real visible change to 88 00:04:26,000 --> 00:04:28,880 Speaker 4: the immigration policies that are really dragging the president down 89 00:04:28,920 --> 00:04:30,120 Speaker 4: right now with the American public. 90 00:04:30,200 --> 00:04:31,240 Speaker 6: I'm glad you brought that up. 91 00:04:31,279 --> 00:04:32,640 Speaker 5: Do you think she is going to make it to 92 00:04:32,680 --> 00:04:36,039 Speaker 5: that hearing because we have had Senator Tillis block all 93 00:04:36,040 --> 00:04:39,000 Speaker 5: these DHS appointees until she decided to come on the 94 00:04:39,040 --> 00:04:41,919 Speaker 5: Hill for hearing, and they've been dragging that out. 95 00:04:42,200 --> 00:04:45,279 Speaker 4: Yeah, they really have. And March third is a really 96 00:04:45,400 --> 00:04:47,560 Speaker 4: long time away. Think about what's going to come in 97 00:04:47,560 --> 00:04:49,360 Speaker 4: between them. The President has to deliver a State of 98 00:04:49,360 --> 00:04:51,719 Speaker 4: the Union address. Immigration is going to have to be 99 00:04:51,839 --> 00:04:55,680 Speaker 4: in the forefront. You know. Hopefully there's no other escalation, 100 00:04:55,800 --> 00:04:59,080 Speaker 4: and ICE really stepped back from its very aggressive sort 101 00:04:59,120 --> 00:05:02,120 Speaker 4: of patrolling of the streets right now. You have a 102 00:05:02,160 --> 00:05:04,800 Speaker 4: lot to do before we get to March third. I 103 00:05:04,800 --> 00:05:06,440 Speaker 4: think the question of whether she makes it that long 104 00:05:06,520 --> 00:05:08,200 Speaker 4: is a really good one. I don't know, but it's 105 00:05:08,240 --> 00:05:09,280 Speaker 4: not a guarantee. 106 00:05:09,480 --> 00:05:12,480 Speaker 2: Well, speaking of they Senator from North Carolina, he's got 107 00:05:12,480 --> 00:05:15,080 Speaker 2: a big role to play in the process to nominate 108 00:05:15,120 --> 00:05:17,800 Speaker 2: and confirm the next FED chair, Henrietta. I thought this 109 00:05:17,960 --> 00:05:21,080 Speaker 2: was going to happen months and months ago. What's happening? 110 00:05:21,960 --> 00:05:23,800 Speaker 3: You know, I've said this to clients quite a bit. 111 00:05:23,839 --> 00:05:25,640 Speaker 4: If you think in the grand scheme of things of 112 00:05:25,640 --> 00:05:28,400 Speaker 4: what's going on in DC, from trying to annex Greenland 113 00:05:28,440 --> 00:05:32,600 Speaker 4: to raising tariffs in South Korea to the killings in Minnesota, 114 00:05:32,760 --> 00:05:37,359 Speaker 4: the FED parlor game is actually the least you know, 115 00:05:37,760 --> 00:05:42,720 Speaker 4: insane or really scary or problematic part of the administration's 116 00:05:42,760 --> 00:05:43,480 Speaker 4: focus right now. 117 00:05:43,520 --> 00:05:44,400 Speaker 6: They don't need. 118 00:05:44,279 --> 00:05:50,120 Speaker 4: A predecessor for j. Powell until May, so they can 119 00:05:50,240 --> 00:05:52,360 Speaker 4: drag this out. It's already been, you know, a couple 120 00:05:52,400 --> 00:05:54,760 Speaker 4: of months past due. Secretary Besson said, you know it 121 00:05:54,800 --> 00:05:57,800 Speaker 4: was coming at Davos. I think they got time, and 122 00:05:58,000 --> 00:06:00,120 Speaker 4: I don't think it's a high stakes thing. Obviously the 123 00:06:00,600 --> 00:06:03,279 Speaker 4: Street is very closely watching it, but it's really just 124 00:06:03,320 --> 00:06:05,800 Speaker 4: a parlor game between a couple of options that the 125 00:06:05,839 --> 00:06:09,320 Speaker 4: Street is pretty comfortable with. So as long as you know, 126 00:06:09,360 --> 00:06:11,599 Speaker 4: even if there is a new hat thrown into the ring, 127 00:06:11,720 --> 00:06:15,080 Speaker 4: like Secretary Bessett as a potential nominee, I don't think 128 00:06:15,080 --> 00:06:17,800 Speaker 4: that that's comparatively a problem for the street, and the 129 00:06:17,800 --> 00:06:19,640 Speaker 4: White House is happy to have that parlor rate game 130 00:06:19,720 --> 00:06:21,200 Speaker 4: go on for a while longer. 131 00:06:21,560 --> 00:06:25,040 Speaker 2: Stay with us, multplinbeg Savannah's coming up off to this. 132 00:06:34,320 --> 00:06:37,720 Speaker 7: I have Mary Bara here, the CEO and chair at 133 00:06:37,720 --> 00:06:41,200 Speaker 7: General Motors, I'm pleased to say, and Mary really knocking 134 00:06:41,240 --> 00:06:43,200 Speaker 7: the cover off the ball with these earnings that you 135 00:06:43,240 --> 00:06:46,440 Speaker 7: see with your outlook, more than two billion dollars in 136 00:06:46,560 --> 00:06:51,080 Speaker 7: extra profit and profit jump for twenty twenty six. Let 137 00:06:51,120 --> 00:06:53,440 Speaker 7: me start by asking what you attribute this to. Is 138 00:06:53,440 --> 00:06:57,960 Speaker 7: it just the great sales and the financing of the 139 00:06:58,040 --> 00:07:00,839 Speaker 7: higher margin vehicles like a Sierra Can Escalade. 140 00:07:02,320 --> 00:07:04,440 Speaker 8: Well, first, I have to start by thanking the entire 141 00:07:04,480 --> 00:07:07,240 Speaker 8: Generalmoters team, our suppliers, and our dealers for doing a 142 00:07:07,240 --> 00:07:10,680 Speaker 8: phenomenal job. You know, twenty twenty five was an exceptional year, 143 00:07:11,200 --> 00:07:13,400 Speaker 8: especially when you look at all the challenges that we face, 144 00:07:13,440 --> 00:07:15,240 Speaker 8: and I think it really demonstrates one of the core 145 00:07:15,320 --> 00:07:18,680 Speaker 8: capabilities of GM, and it's our agility and our resilience. 146 00:07:18,960 --> 00:07:21,680 Speaker 8: But the core of it starts with our great product portfolio, 147 00:07:21,720 --> 00:07:25,440 Speaker 8: whether it's very affordable evs like the Chevrolet Tracks all 148 00:07:25,440 --> 00:07:27,520 Speaker 8: the way up to you know, a supercar like what's 149 00:07:27,600 --> 00:07:31,120 Speaker 8: behind me with the Corvette ZR one x. 150 00:07:31,120 --> 00:07:32,600 Speaker 6: So couldn't be more proud of the team. 151 00:07:32,960 --> 00:07:36,480 Speaker 7: The ZR one x with twelve hundred and fifty horse power, 152 00:07:36,520 --> 00:07:39,880 Speaker 7: it is indeed, I would call it a hypercar. Mary, 153 00:07:40,120 --> 00:07:42,960 Speaker 7: That's not the bread and butter though for you. You 154 00:07:43,080 --> 00:07:48,000 Speaker 7: really make these highly profitable, highly capable big trucks, and 155 00:07:48,440 --> 00:07:51,640 Speaker 7: Americans are buying more of those and fewer. 156 00:07:51,320 --> 00:07:52,080 Speaker 6: Of the evs. 157 00:07:52,120 --> 00:07:55,560 Speaker 7: Do you expect to continue to sell fewer of the EV's. 158 00:07:55,640 --> 00:07:58,360 Speaker 7: I know you took a seven billion dollar and change 159 00:07:58,400 --> 00:08:00,560 Speaker 7: right down for that business in twenty twenty five. 160 00:08:02,280 --> 00:08:04,200 Speaker 8: Well, you know the whole industry. We were on a 161 00:08:04,240 --> 00:08:07,320 Speaker 8: path that we were working to get to forty to 162 00:08:07,320 --> 00:08:10,120 Speaker 8: fifty percent evs by twenty thirty. So now that the 163 00:08:10,160 --> 00:08:13,760 Speaker 8: regulatory environment has changed and the consumer incentives have gone, 164 00:08:14,080 --> 00:08:16,520 Speaker 8: there is going to be slower EV adoption. We're still 165 00:08:16,520 --> 00:08:19,080 Speaker 8: committed evs and we've got a great portfolio that we're 166 00:08:19,080 --> 00:08:21,400 Speaker 8: working on taking costs out. But in the meantime, we 167 00:08:21,440 --> 00:08:24,600 Speaker 8: also have a great internal combustion engine platform, and you're right, 168 00:08:24,920 --> 00:08:27,560 Speaker 8: full size trucks are one of the strengths we have 169 00:08:28,200 --> 00:08:31,000 Speaker 8: as well as full size SUVs, mid sized crossovers. So 170 00:08:31,040 --> 00:08:33,480 Speaker 8: we really have a strong lineup across the board and 171 00:08:33,480 --> 00:08:36,520 Speaker 8: that is really what is, you know, fueling our business success. 172 00:08:36,760 --> 00:08:40,079 Speaker 7: I have had as the host of Hot Pursuit of 173 00:08:40,280 --> 00:08:43,480 Speaker 7: Bloomberg podcast about cars, the opportunity to drive a lot 174 00:08:43,520 --> 00:08:47,200 Speaker 7: of your evs, from the Sierra EV to the Hummer 175 00:08:47,280 --> 00:08:52,679 Speaker 7: EV to the Escalade IQ, and they're fantastic products. Are 176 00:08:52,720 --> 00:08:56,120 Speaker 7: you Are you not deterred that Americans aren't buying more 177 00:08:56,160 --> 00:08:59,600 Speaker 7: of these vehicles? You know how capable, how capable they are, 178 00:08:59,640 --> 00:09:02,400 Speaker 7: you know how we useful they are in daily life. 179 00:09:03,120 --> 00:09:06,120 Speaker 7: What needs to happen for more Americans to buy these evs? 180 00:09:07,880 --> 00:09:10,199 Speaker 8: Well, I think that consumer is very rational when they're 181 00:09:10,240 --> 00:09:11,800 Speaker 8: making a decision about what CARDI by. 182 00:09:11,840 --> 00:09:12,960 Speaker 6: Let's remember it's one. 183 00:09:12,800 --> 00:09:16,920 Speaker 8: Of the most important and expensive decisions that they make. 184 00:09:17,240 --> 00:09:18,800 Speaker 8: And one of the things we have to continue to 185 00:09:18,800 --> 00:09:21,440 Speaker 8: work on to drive EV adoption is a more robust 186 00:09:21,520 --> 00:09:24,760 Speaker 8: charging infrastructure, and that still is continuing to happen. So 187 00:09:24,840 --> 00:09:27,680 Speaker 8: every quarter, more and more chargers are available. I think 188 00:09:27,880 --> 00:09:30,720 Speaker 8: we as people in their individual communities, see that they've 189 00:09:30,720 --> 00:09:33,240 Speaker 8: got a robust charging network and believe if they have 190 00:09:33,280 --> 00:09:34,920 Speaker 8: to go on a road trip there's that as well. 191 00:09:34,960 --> 00:09:36,839 Speaker 8: They're going to make that choice. And what we do 192 00:09:36,880 --> 00:09:39,880 Speaker 8: see is once someone buys an EV, they see about that, 193 00:09:40,040 --> 00:09:43,280 Speaker 8: they see the technology, they see the driving experience, never 194 00:09:43,360 --> 00:09:45,640 Speaker 8: having to go to the gas station, and they stick 195 00:09:45,720 --> 00:09:48,200 Speaker 8: with evs. So I think it will happen over time, 196 00:09:48,240 --> 00:09:50,800 Speaker 8: and that's why during this period we've already got a 197 00:09:50,840 --> 00:09:53,559 Speaker 8: great portfolio of EV's. We're going to continue to work 198 00:09:53,600 --> 00:09:56,480 Speaker 8: take cost out to get our EV portfolio profitable, and 199 00:09:56,520 --> 00:09:59,120 Speaker 8: we're going to be well positioned as EV demand grows 200 00:09:59,200 --> 00:10:00,560 Speaker 8: over the next hand full of years. 201 00:10:00,840 --> 00:10:03,360 Speaker 7: What about the hybrids, Mary, I mean, GM was really 202 00:10:03,400 --> 00:10:06,400 Speaker 7: a front runner not only in EV technology, but in 203 00:10:06,520 --> 00:10:09,679 Speaker 7: hybrid technology with the Chevy Volt. I remember when the 204 00:10:09,720 --> 00:10:12,000 Speaker 7: Tahoe came out with a six lider gas engine and 205 00:10:12,800 --> 00:10:15,719 Speaker 7: electric battery power. Will you start to sell more of 206 00:10:16,800 --> 00:10:18,120 Speaker 7: the hybrid vehicles. 207 00:10:19,400 --> 00:10:22,600 Speaker 8: Well, we have always focused. As you said, we have 208 00:10:22,679 --> 00:10:26,120 Speaker 8: great hybrid technology, we have great EV technology. We're one 209 00:10:26,120 --> 00:10:30,000 Speaker 8: of the few OEMs that invested in a dedicated EV 210 00:10:30,080 --> 00:10:32,560 Speaker 8: platform that allows us to have the portfolio we have. 211 00:10:32,920 --> 00:10:37,360 Speaker 8: So we're focused on the endgame and we have affordable evs. 212 00:10:37,640 --> 00:10:40,120 Speaker 8: So I think that's where our primary focus is. We 213 00:10:40,200 --> 00:10:43,320 Speaker 8: understand the technology, we have it in other regions, you'll 214 00:10:43,320 --> 00:10:46,200 Speaker 8: see us with a handful of hybrids as we move forward, 215 00:10:46,400 --> 00:10:48,400 Speaker 8: But right now, our focus is really on having the 216 00:10:48,480 --> 00:10:53,079 Speaker 8: right internal combustion engine portfolio and the right EV portfolio 217 00:10:53,200 --> 00:10:56,160 Speaker 8: moving forward. And I think we're demonstrating that that's a 218 00:10:56,200 --> 00:10:58,720 Speaker 8: winning formula because over the last four years we've gained 219 00:10:58,720 --> 00:10:59,560 Speaker 8: share each year. 220 00:11:00,160 --> 00:11:03,480 Speaker 7: I wonder how much your racing efforts push towards that, 221 00:11:03,679 --> 00:11:05,640 Speaker 7: And I know this is something I've talked about with 222 00:11:05,960 --> 00:11:08,040 Speaker 7: your president Mark Royce on a number of occasions, but 223 00:11:08,080 --> 00:11:11,120 Speaker 7: you're getting into so many more leagues. I watched the 224 00:11:11,200 --> 00:11:15,520 Speaker 7: hypercars in Lament this summer and looking forward to watching 225 00:11:15,520 --> 00:11:17,880 Speaker 7: you participate in Formula one. Do you think this really 226 00:11:18,160 --> 00:11:20,680 Speaker 7: boosts your brand awareness around the world. 227 00:11:22,880 --> 00:11:25,240 Speaker 6: Absolutely, we definitely see that it does. 228 00:11:25,280 --> 00:11:27,440 Speaker 8: And I think when you look at Cadillac and the 229 00:11:27,480 --> 00:11:30,840 Speaker 8: strength of Cadillac, it is true luxury, true American luxury. 230 00:11:31,280 --> 00:11:34,079 Speaker 8: F one is the place that Cadillac should be showcased. 231 00:11:34,120 --> 00:11:36,720 Speaker 8: So we're very proud to be a full works American team, 232 00:11:37,160 --> 00:11:42,000 Speaker 8: anxious to enter this year in Australia, but I think 233 00:11:42,000 --> 00:11:44,160 Speaker 8: it's going to be very important for the Cadillac brand, 234 00:11:44,320 --> 00:11:46,640 Speaker 8: and we do have a really robust program that takes 235 00:11:46,679 --> 00:11:49,200 Speaker 8: what we learn on the track and we incorporate into 236 00:11:49,200 --> 00:11:51,959 Speaker 8: our vehicles to make our vehicles better. It's true for 237 00:11:52,600 --> 00:11:55,760 Speaker 8: Chevrolet as well as Cadillac and the entire portfolio. 238 00:11:56,360 --> 00:12:02,080 Speaker 7: I got to ask about the finance arm. GM Financial 239 00:12:02,160 --> 00:12:05,200 Speaker 7: provided a massive liquidity buffer I think thirty six billion 240 00:12:05,960 --> 00:12:10,600 Speaker 7: dollars there. How do you think about, because you're doing buybacks, 241 00:12:10,600 --> 00:12:12,760 Speaker 7: returning a lot of cash to shareholders. I'm sure they're 242 00:12:12,760 --> 00:12:14,920 Speaker 7: happy about the stock is near an all time high, 243 00:12:14,960 --> 00:12:18,480 Speaker 7: but how do you think about putting that aside for 244 00:12:18,640 --> 00:12:22,840 Speaker 7: protection versus supporting shareholder returns, you know, in case the 245 00:12:22,840 --> 00:12:24,280 Speaker 7: autocycle turns at some point. 246 00:12:25,800 --> 00:12:29,280 Speaker 8: Well, we've indicated that eighteen to twenty billion is our 247 00:12:29,320 --> 00:12:32,080 Speaker 8: cash target. Last year we finished the year strong at 248 00:12:32,120 --> 00:12:35,120 Speaker 8: around twenty two billion, and we have a capital allocation 249 00:12:35,200 --> 00:12:38,520 Speaker 8: framework of first reinvesting in the business, second making sure 250 00:12:38,559 --> 00:12:40,959 Speaker 8: that we have an investment grade balance sheet, and then 251 00:12:41,000 --> 00:12:43,600 Speaker 8: returning cash to shareholders. And we think, based on the 252 00:12:43,600 --> 00:12:45,840 Speaker 8: strength of our business and the cash that we generate, 253 00:12:46,080 --> 00:12:48,400 Speaker 8: we can continue to do that well. 254 00:12:48,480 --> 00:12:49,760 Speaker 6: And that's where our focus is. 255 00:12:50,400 --> 00:12:53,439 Speaker 7: You know, the financial arm has added I think more 256 00:12:53,440 --> 00:12:56,560 Speaker 7: than two billion dollars to twenty twenty five profits, So 257 00:12:56,600 --> 00:12:59,920 Speaker 7: it's really a contributor, kind of a quiet profit stable lot. 258 00:13:00,520 --> 00:13:03,920 Speaker 7: Is that turning though, as delinquencies and charge offs rise 259 00:13:04,040 --> 00:13:05,920 Speaker 7: a little bit? Is that starting to concern you as 260 00:13:05,920 --> 00:13:08,199 Speaker 7: consumer balance sheets fin out. 261 00:13:09,480 --> 00:13:09,640 Speaker 6: Well? 262 00:13:09,679 --> 00:13:11,839 Speaker 8: It's something that we watch very closely that I think 263 00:13:11,920 --> 00:13:14,839 Speaker 8: GMF does a great job in their business, and it 264 00:13:14,920 --> 00:13:17,600 Speaker 8: is a very important business. Shout out to the gm 265 00:13:17,679 --> 00:13:20,160 Speaker 8: Financial team for the great work they do. It's also 266 00:13:20,360 --> 00:13:23,640 Speaker 8: very important from a loyalty perspective because having a captive 267 00:13:24,360 --> 00:13:27,360 Speaker 8: and being able to interface with a consumer on a 268 00:13:27,360 --> 00:13:29,960 Speaker 8: monthly basis as they make their car payments, I think 269 00:13:30,040 --> 00:13:33,320 Speaker 8: is just part of the ecosystem that we're building to 270 00:13:33,440 --> 00:13:36,680 Speaker 8: really make sure we have that great relationship with the customer, 271 00:13:36,679 --> 00:13:38,920 Speaker 8: and it shows that we have the highest loyalty in 272 00:13:38,960 --> 00:13:40,440 Speaker 8: the US of any OEM. 273 00:13:42,080 --> 00:13:46,680 Speaker 7: I look at loan originations in the fourth quarter and 274 00:13:46,679 --> 00:13:49,760 Speaker 7: I see that they're down pretty substantially, about twenty one percent, 275 00:13:49,800 --> 00:13:53,360 Speaker 7: and I wonder if that's a deliberate choice by GMF. 276 00:13:53,520 --> 00:13:58,720 Speaker 7: Are you tightening your credit standards or is that reflecting 277 00:13:58,760 --> 00:14:02,280 Speaker 7: a softer demand today? Rates and prices which are both 278 00:14:02,320 --> 00:14:04,120 Speaker 7: fairly high. 279 00:14:04,200 --> 00:14:06,800 Speaker 8: Well, the car company and the finance company. They work 280 00:14:06,840 --> 00:14:08,840 Speaker 8: together to make sure we have the right equation and 281 00:14:08,840 --> 00:14:12,800 Speaker 8: what's going to optimize profitability for the enterprise. And so 282 00:14:13,080 --> 00:14:15,679 Speaker 8: I don't think you can look at one quarter. It 283 00:14:15,679 --> 00:14:17,600 Speaker 8: goes up and down depending on what's happening in the 284 00:14:17,600 --> 00:14:18,440 Speaker 8: external world. 285 00:14:18,640 --> 00:14:20,160 Speaker 6: But GMF is a very. 286 00:14:20,000 --> 00:14:24,200 Speaker 8: Important part of our portfolio of companies, and again, as 287 00:14:24,240 --> 00:14:26,840 Speaker 8: I said, it works in concert with the car company 288 00:14:27,160 --> 00:14:29,240 Speaker 8: to make sure that we have a strong business overall. 289 00:14:29,600 --> 00:14:31,560 Speaker 7: I have to when I think of credit standards, I 290 00:14:31,560 --> 00:14:35,040 Speaker 7: think of First Brands among some of the other businesses 291 00:14:35,080 --> 00:14:38,480 Speaker 7: that have fallen to Chapter eleven this year. And I 292 00:14:38,520 --> 00:14:40,920 Speaker 7: saw a report in the Financial Times overnight that you, 293 00:14:41,200 --> 00:14:45,440 Speaker 7: along with Ford, your crosstown rivals, are negotiating to help 294 00:14:46,040 --> 00:14:48,600 Speaker 7: send them a rescue line of sorts. Can you comment 295 00:14:48,640 --> 00:14:51,840 Speaker 7: on that at all, Mary. 296 00:14:50,800 --> 00:14:53,160 Speaker 8: Well, what we're very much focused on is while we 297 00:14:53,840 --> 00:14:57,000 Speaker 8: make sure we have secure supply is that transition period. 298 00:14:57,000 --> 00:14:59,800 Speaker 8: So I think what you see General Motors and other 299 00:15:00,000 --> 00:15:02,000 Speaker 8: ims working together to do is make sure that we 300 00:15:02,040 --> 00:15:05,360 Speaker 8: don't have supply chain disruptions because of their financial situation. 301 00:15:05,840 --> 00:15:06,920 Speaker 6: We've been working on it. 302 00:15:06,960 --> 00:15:09,560 Speaker 8: But I think as we look at you know, the immediate, 303 00:15:09,600 --> 00:15:12,920 Speaker 8: what's happening next week, next month. That's the work that 304 00:15:12,920 --> 00:15:15,920 Speaker 8: we're doing, as well as in parallel making sure we 305 00:15:16,000 --> 00:15:18,520 Speaker 8: have longer term supplies. So that's what you're seeing with 306 00:15:18,560 --> 00:15:19,200 Speaker 8: that announcement. 307 00:15:19,400 --> 00:15:21,280 Speaker 7: When you talk about a supply chain, I think about 308 00:15:21,320 --> 00:15:24,160 Speaker 7: the concessions you're able to get out of your suppliers. 309 00:15:24,280 --> 00:15:27,360 Speaker 7: I know that you're trying to keep costs down. You're 310 00:15:27,760 --> 00:15:30,000 Speaker 7: under a thread of tariffs or you already face tariffs, 311 00:15:30,040 --> 00:15:32,200 Speaker 7: and a lot of the places you've produced, how much 312 00:15:32,240 --> 00:15:34,360 Speaker 7: of those tariffs have you been able to pass through 313 00:15:34,640 --> 00:15:38,800 Speaker 7: to consumers where you haven't been able to cut costs 314 00:15:38,880 --> 00:15:40,560 Speaker 7: or get concessions from suppliers. 315 00:15:41,840 --> 00:15:43,760 Speaker 8: I think if you look at our portfolio, I think 316 00:15:43,840 --> 00:15:46,080 Speaker 8: you know, for the most part, we've worked to offset 317 00:15:46,080 --> 00:15:51,720 Speaker 8: it and with efficiencies across the board, making smart decisions 318 00:15:51,760 --> 00:15:55,240 Speaker 8: on where we produce, and so very little has gone 319 00:15:55,240 --> 00:15:59,280 Speaker 8: to the consumer because we are such a cost sensitive 320 00:15:59,320 --> 00:16:02,560 Speaker 8: business and it's such a competitive business. But we continue 321 00:16:02,560 --> 00:16:04,560 Speaker 8: to look at all those levers and we stay focused 322 00:16:04,600 --> 00:16:06,000 Speaker 8: on consumer affordability. 323 00:16:06,160 --> 00:16:09,960 Speaker 7: You're operating Mary in the heart of America, and America's 324 00:16:10,040 --> 00:16:14,040 Speaker 7: undergone some really tough times, especially over the last few 325 00:16:14,040 --> 00:16:16,480 Speaker 7: weeks in Minnesota. What are you doing, What is General 326 00:16:16,480 --> 00:16:19,560 Speaker 7: Motors doing to kind of keep the temperature down to 327 00:16:19,640 --> 00:16:22,640 Speaker 7: kind of keep the calm at your company and with 328 00:16:22,760 --> 00:16:23,480 Speaker 7: your suppliers. 329 00:16:24,760 --> 00:16:27,240 Speaker 8: Well, we want to make sure that everyone stays focused 330 00:16:27,320 --> 00:16:30,240 Speaker 8: on the business and is part of the solution, meaning 331 00:16:30,280 --> 00:16:32,720 Speaker 8: de escalating. I believe that's starting to happen. So that's 332 00:16:32,760 --> 00:16:34,160 Speaker 8: what we continue to reinforce. 333 00:16:34,880 --> 00:16:38,320 Speaker 2: Stay with us. Mulblemberg. Savannah's coming up off to this 334 00:16:47,680 --> 00:16:49,880 Speaker 2: a sensitive federal reserve. The Central Bank is set to 335 00:16:49,920 --> 00:16:52,400 Speaker 2: make his first right decision of the YA tomorrow as 336 00:16:52,400 --> 00:16:55,000 Speaker 2: threats to FED independence build. Joining us now is the 337 00:16:55,080 --> 00:16:58,080 Speaker 2: former Kansas City FED president as the George as the 338 00:16:58,200 --> 00:17:00,720 Speaker 2: welcome bank to the program. Before we get into substance, 339 00:17:01,080 --> 00:17:04,119 Speaker 2: the Economic Bank drop the policy. I want to pick 340 00:17:04,240 --> 00:17:07,880 Speaker 2: up on the more assertive stunts, the more aggressive posture, 341 00:17:07,920 --> 00:17:10,000 Speaker 2: if you will. The Chairman Pouse seemed to be taken 342 00:17:10,040 --> 00:17:13,160 Speaker 2: this year to defend central Bank independence. I'd love your 343 00:17:13,160 --> 00:17:15,399 Speaker 2: reaction to that and whether you believe he'll carry that 344 00:17:15,440 --> 00:17:17,640 Speaker 2: into the news conference tomorrow afternoon. 345 00:17:19,040 --> 00:17:19,200 Speaker 3: Yeah. 346 00:17:19,320 --> 00:17:23,560 Speaker 1: Good, Marnie, Jonathan. I think the Chairman had to take 347 00:17:23,600 --> 00:17:27,240 Speaker 1: this move. I think we have been dancing around these 348 00:17:27,280 --> 00:17:31,960 Speaker 1: threats to independence and really trying not to make too 349 00:17:32,040 --> 00:17:35,199 Speaker 1: much of it. But I think the Chairman reached a 350 00:17:35,280 --> 00:17:39,480 Speaker 1: point where he really did have to speak out and 351 00:17:40,920 --> 00:17:44,359 Speaker 1: send a message to the public about how important the 352 00:17:44,400 --> 00:17:46,760 Speaker 1: decision making of the Central Bank is that it not 353 00:17:46,880 --> 00:17:50,080 Speaker 1: get caught up in political issues. And as you saw, 354 00:17:50,560 --> 00:17:55,680 Speaker 1: the reaction from around the world from former policy makers 355 00:17:56,200 --> 00:17:58,160 Speaker 1: was quite supportive of that, as was I. 356 00:17:58,680 --> 00:18:01,080 Speaker 5: That's when it comes to the video he released in 357 00:18:01,160 --> 00:18:03,680 Speaker 5: reaction to the subpoena from the DOJ. But he also 358 00:18:03,760 --> 00:18:06,240 Speaker 5: recently went to the Supreme Court to attend the hearing 359 00:18:06,640 --> 00:18:09,520 Speaker 5: of Lisa Cook, and the administration said that he was 360 00:18:09,600 --> 00:18:13,800 Speaker 5: now politicizing that hearing. What's your reaction to that movement 361 00:18:13,880 --> 00:18:16,159 Speaker 5: from J Powell? 362 00:18:16,359 --> 00:18:20,440 Speaker 1: Well, I think the Supreme Court's decision is absolutely consequential 363 00:18:20,560 --> 00:18:24,280 Speaker 1: to the future of the Federal Reserve and thinking about 364 00:18:25,000 --> 00:18:30,600 Speaker 1: how this body will weigh in on the ability of 365 00:18:30,800 --> 00:18:35,000 Speaker 1: removing FED governors. So clearly, I think as a leader 366 00:18:35,200 --> 00:18:40,200 Speaker 1: of this institution, his interest would be high and understanding 367 00:18:40,320 --> 00:18:43,080 Speaker 1: how the courts might be talking about this and what 368 00:18:43,119 --> 00:18:45,200 Speaker 1: the arguments are that are presented. 369 00:18:45,359 --> 00:18:47,240 Speaker 3: I didn't view that as a political. 370 00:18:46,800 --> 00:18:49,800 Speaker 5: One given these stances we have seen from him, do 371 00:18:49,840 --> 00:18:51,720 Speaker 5: you think in the press conference he's going to be 372 00:18:51,760 --> 00:18:55,040 Speaker 5: more willing to engage when reporters obviously ask a number 373 00:18:55,040 --> 00:18:57,600 Speaker 5: of questions that are really on this line when it 374 00:18:57,600 --> 00:18:58,600 Speaker 5: comes to politics. 375 00:19:00,080 --> 00:19:02,520 Speaker 1: Well, I'm quite sure he's going to get a number 376 00:19:02,520 --> 00:19:05,800 Speaker 1: of questions, and I suspect he will address them at 377 00:19:05,800 --> 00:19:09,760 Speaker 1: the same time, though, trying to keep the focus on 378 00:19:09,840 --> 00:19:12,520 Speaker 1: what it is this committee is really focused on, and 379 00:19:12,560 --> 00:19:16,640 Speaker 1: that is responding to economic conditions in the United States, 380 00:19:16,680 --> 00:19:19,680 Speaker 1: and so yes, I think he will have to address 381 00:19:20,920 --> 00:19:23,480 Speaker 1: what are likely to be a number of questions, and 382 00:19:23,600 --> 00:19:26,200 Speaker 1: he may do so in the fashion he did in 383 00:19:26,240 --> 00:19:30,920 Speaker 1: his previous statement. Again bringing it back though to this 384 00:19:30,960 --> 00:19:33,159 Speaker 1: is the job of the Central Bank and where he 385 00:19:33,280 --> 00:19:35,160 Speaker 1: most likely will want to focus today. 386 00:19:35,240 --> 00:19:37,760 Speaker 2: As did you think that the economic backdrop at the 387 00:19:37,800 --> 00:19:39,600 Speaker 2: moment gives them the space the hit post for a 388 00:19:39,640 --> 00:19:40,160 Speaker 2: little while. 389 00:19:41,600 --> 00:19:45,200 Speaker 1: Yeah, I agree that it's time to take a breath 390 00:19:45,520 --> 00:19:48,080 Speaker 1: on these rate cuts. They've made a number of cuts 391 00:19:48,119 --> 00:19:51,800 Speaker 1: that are still feeding through the economy, and so I 392 00:19:51,840 --> 00:19:56,119 Speaker 1: think it makes sense in the face of elevated inflation 393 00:19:56,720 --> 00:20:00,480 Speaker 1: and what seems to be coming this year, that it 394 00:20:00,480 --> 00:20:02,760 Speaker 1: would be a good time to pause and really take 395 00:20:02,920 --> 00:20:06,560 Speaker 1: stock of how they assess the economy on both sides 396 00:20:06,560 --> 00:20:07,199 Speaker 1: of their mandate. 397 00:20:07,359 --> 00:20:09,359 Speaker 2: What do you expect is coming this year on the 398 00:20:09,359 --> 00:20:11,560 Speaker 2: inflation side. 399 00:20:11,840 --> 00:20:16,040 Speaker 1: Well, my own view, Jonathan is that inflation is something 400 00:20:16,080 --> 00:20:19,320 Speaker 1: we've got to keep a careful eye on because I 401 00:20:19,440 --> 00:20:23,439 Speaker 1: continue to hear this idea that the full impulse of 402 00:20:23,520 --> 00:20:26,879 Speaker 1: the tariffs has not fed through yet. I think companies 403 00:20:26,920 --> 00:20:30,719 Speaker 1: have been trying to do their best in managing pushing 404 00:20:30,760 --> 00:20:33,560 Speaker 1: through those costs, but you could expect I think that 405 00:20:33,680 --> 00:20:35,680 Speaker 1: the first half of the year we will see more 406 00:20:35,760 --> 00:20:40,240 Speaker 1: price pressures coming in there. You have easy financial conditions now, 407 00:20:40,320 --> 00:20:44,080 Speaker 1: and you have a fiscal situation that I think is 408 00:20:44,119 --> 00:20:46,800 Speaker 1: going to be a tailwind both on the consumer side 409 00:20:46,800 --> 00:20:50,679 Speaker 1: and business side with some of the new rules coming 410 00:20:50,720 --> 00:20:53,520 Speaker 1: into play, and so I think all of that should 411 00:20:53,560 --> 00:20:58,840 Speaker 1: make us very cautious about inflation expectations staying firmly anchored 412 00:20:58,840 --> 00:21:02,159 Speaker 1: at that two percent and really raising I think the 413 00:21:02,240 --> 00:21:05,920 Speaker 1: attention that the Fed has to pay on that inflation mandate. 414 00:21:06,160 --> 00:21:09,879 Speaker 5: I understand you're concern about inflation potentially pushing higher, but 415 00:21:10,160 --> 00:21:13,600 Speaker 5: hasn't the Fed basically acknowledged that they're no longer looking 416 00:21:13,600 --> 00:21:16,200 Speaker 5: for two percent target given how many cuts we've had 417 00:21:16,240 --> 00:21:17,800 Speaker 5: and it's been closer to three. 418 00:21:19,520 --> 00:21:22,000 Speaker 1: Well, they've certainly moved in the direction of putting more 419 00:21:22,040 --> 00:21:25,399 Speaker 1: weight on the labor market part of their mandate and 420 00:21:25,480 --> 00:21:29,119 Speaker 1: have emphasized that. And I think you know fair enough 421 00:21:29,200 --> 00:21:31,879 Speaker 1: to look at that, because you have seen a dramatic 422 00:21:32,000 --> 00:21:36,119 Speaker 1: change in the data from a labor market that was 423 00:21:36,200 --> 00:21:39,080 Speaker 1: really tied a number of job openings and that's sort 424 00:21:39,119 --> 00:21:42,719 Speaker 1: of reversed and pulled back. At the same time, though 425 00:21:42,960 --> 00:21:45,960 Speaker 1: this is a FED that just released its framework saying 426 00:21:46,040 --> 00:21:49,280 Speaker 1: two percent was the target, they have to keep their 427 00:21:49,320 --> 00:21:53,080 Speaker 1: eye on inflation expectations. And the truth is, households and 428 00:21:53,160 --> 00:21:57,080 Speaker 1: businesses are beginning to agitate a bit, if you will, 429 00:21:57,200 --> 00:22:01,480 Speaker 1: even in these survey measures about their concern about future inflation. 430 00:22:01,560 --> 00:22:03,960 Speaker 1: So I think it's a very good time just to 431 00:22:04,040 --> 00:22:08,360 Speaker 1: reassess and be quite confident about your assessment of inflation 432 00:22:08,560 --> 00:22:10,119 Speaker 1: before making further rate cuts. 433 00:22:10,200 --> 00:22:12,399 Speaker 5: When it comes to the potential tariff paths through, we 434 00:22:12,440 --> 00:22:14,720 Speaker 5: have heard from Amazon they're saying that more of the 435 00:22:14,760 --> 00:22:17,080 Speaker 5: tariff pass through is actually starting to creep into some 436 00:22:17,160 --> 00:22:21,120 Speaker 5: of the prices. But do you think that consumers will 437 00:22:21,119 --> 00:22:23,000 Speaker 5: bear the brunt of it, or really, will it still 438 00:22:23,040 --> 00:22:25,119 Speaker 5: be corporate America that tries to bear the brunt of 439 00:22:25,160 --> 00:22:27,280 Speaker 5: it this year as well? 440 00:22:27,400 --> 00:22:29,920 Speaker 1: Yeah, Marie, We'll have to see how this plays out. 441 00:22:29,960 --> 00:22:32,680 Speaker 1: I mean, so far, I think businesses have been very 442 00:22:32,720 --> 00:22:38,159 Speaker 1: careful not to overwhelm consumers with these price increases. But 443 00:22:38,200 --> 00:22:40,520 Speaker 1: there is a limit to that, as you know, and 444 00:22:40,600 --> 00:22:44,520 Speaker 1: I think consumers have been bearing the cost of this, 445 00:22:45,200 --> 00:22:47,320 Speaker 1: and I think they will continue to. 446 00:22:47,560 --> 00:22:48,440 Speaker 6: We saw some. 447 00:22:48,560 --> 00:22:51,040 Speaker 1: Of that, I think come through in the Fed's Page 448 00:22:51,119 --> 00:22:54,640 Speaker 1: book most recently to say that is still very much 449 00:22:54,680 --> 00:22:57,280 Speaker 1: on the minds of businesses as they come into this 450 00:22:57,359 --> 00:22:57,760 Speaker 1: new year. 451 00:22:57,880 --> 00:22:59,880 Speaker 2: I s's so strange to have a conversation right now, 452 00:23:00,080 --> 00:23:02,720 Speaker 2: this really robust backdrop for economic growth at the same 453 00:23:02,760 --> 00:23:05,880 Speaker 2: time we have these concerns about a weaker labor market. 454 00:23:06,160 --> 00:23:08,240 Speaker 2: What do you think explains that disconnect of the last 455 00:23:08,280 --> 00:23:11,280 Speaker 2: twelve months and do you see it reconciling in the 456 00:23:11,320 --> 00:23:12,240 Speaker 2: next twelve. 457 00:23:13,480 --> 00:23:17,000 Speaker 1: Well, it's easy to start with the data, Jonathan and say, 458 00:23:17,080 --> 00:23:20,920 Speaker 1: you know, the government shut down gave us a little 459 00:23:21,000 --> 00:23:22,639 Speaker 1: scramble as it relates to that. 460 00:23:22,680 --> 00:23:23,320 Speaker 3: So it's going to. 461 00:23:23,280 --> 00:23:26,280 Speaker 1: Take a little while, both on inflation data and labor 462 00:23:26,280 --> 00:23:28,600 Speaker 1: market data to work through that, But I think we 463 00:23:28,680 --> 00:23:32,560 Speaker 1: also have to recognize that while demand has come off, 464 00:23:32,560 --> 00:23:35,520 Speaker 1: and you can say demand came off from employers because 465 00:23:35,520 --> 00:23:39,480 Speaker 1: of uncertainty, because of making more technological investments that would 466 00:23:39,560 --> 00:23:44,080 Speaker 1: substitute for labor, you've also seen the supply side be 467 00:23:44,320 --> 00:23:47,960 Speaker 1: hit directly too, and so those two things have left 468 00:23:48,040 --> 00:23:52,280 Speaker 1: us with an unemployment rate that looks pretty low all 469 00:23:52,760 --> 00:23:56,920 Speaker 1: all in, but it does make you ask questions about 470 00:23:57,000 --> 00:24:00,320 Speaker 1: where that labor market is headed when you know people 471 00:24:00,400 --> 00:24:04,240 Speaker 1: characterize a low higher low fire environment and you see 472 00:24:04,560 --> 00:24:08,240 Speaker 1: very narrow sectors of the economy that are actually adding labor. 473 00:24:08,680 --> 00:24:12,280 Speaker 1: So again, I think all of that weighs in the 474 00:24:12,359 --> 00:24:15,719 Speaker 1: balance for the FED of saying, let's wait and understand, 475 00:24:15,800 --> 00:24:19,120 Speaker 1: given what we've done so far, what these dynamics are 476 00:24:19,119 --> 00:24:20,040 Speaker 1: in the labor market. 477 00:24:20,920 --> 00:24:24,440 Speaker 2: This is the Bloomberg Surveillance Podcast, bringing you the best 478 00:24:24,480 --> 00:24:28,040 Speaker 2: in markets, economics, angiopolitics. You can watch the show live 479 00:24:28,119 --> 00:24:31,120 Speaker 2: on Bloomberg TV weekday mornings from six am to nine 480 00:24:31,200 --> 00:24:34,919 Speaker 2: am Eastern. Subscribe to the podcast on Apple, Spotify or 481 00:24:34,960 --> 00:24:37,560 Speaker 2: anywhere else you listen, and as always on the Bloomberg 482 00:24:37,640 --> 00:24:39,480 Speaker 2: Terminal and the Bloomberg Business app.