WEBVTT - Bloomberg Surveillance TV: January 27th, 2026 0:00:02.360 --> 0:00:06.720 Bloomberg Audio Studios, Podcasts, radio News. 0:00:11.640 --> 0:00:15.440 This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 0:00:15.480 --> 0:00:18.680 with Lisa Bromwitz and Amrie Hordert. Join us each day 0:00:18.720 --> 0:00:22.280 for insight from the best in markets, economics, and geopolitics 0:00:22.400 --> 0:00:24.880 from our global headquarters in New York City. We are 0:00:24.920 --> 0:00:27.680 live on Bloomberg Television weekday mornings from six to nine 0:00:27.720 --> 0:00:31.280 am Eastern. Subscribe to the podcast on Apple, Spotify or 0:00:31.320 --> 0:00:33.919 anywhere else you listen, and as always on the Bloomberg 0:00:34.000 --> 0:00:37.280 Terminal and the Bloomberg Business app. Henrietta trees of Vader 0:00:37.320 --> 0:00:40.519 Partner's writing. At this point, a partial shutdown of the 0:00:40.520 --> 0:00:43.720 federal government on January thirty one appears hardly likely. However, 0:00:44.080 --> 0:00:46.960 there is bipartisan support for limiting the shutdown to just 0:00:47.360 --> 0:00:51.239 the Department of Homeland Security. Henrietta joins us now for more. Henrietta, 0:00:51.280 --> 0:00:55.520 Welcome to the program. Immigration enforcement. The President won the argument, 0:00:55.880 --> 0:01:00.080 he won the election. Is he now losing the country? 0:01:00.200 --> 0:01:01.200 I think that's pretty clear. 0:01:01.240 --> 0:01:04.040 And you have a whole bunch of Republicans, especially those 0:01:04.080 --> 0:01:08.520 that are in very at risk states, coming out clearly 0:01:08.640 --> 0:01:11.679 condemning the moves from Ice that resulted in the death 0:01:11.720 --> 0:01:14.800 of Alex Preedy over the weekend, and that kind of 0:01:14.880 --> 0:01:17.760 disruption and the fracture and the Republican Party is how 0:01:17.760 --> 0:01:20.640 you know that things need to change from the status 0:01:20.720 --> 0:01:23.960 quo that we have right now. I think, in addition, 0:01:24.360 --> 0:01:27.280 the personnel swaps that the White House is trying to 0:01:28.040 --> 0:01:30.959 do in Minnesota are just not sufficient. I was speaking 0:01:30.959 --> 0:01:34.200 with some Minnesotas last night and they don't see a 0:01:34.360 --> 0:01:38.920 difference between Bovino and Home End. So they need to 0:01:38.920 --> 0:01:41.039 see quite a bit more out of the White House 0:01:41.240 --> 0:01:44.080 than what is currently on the table. The solution is 0:01:44.080 --> 0:01:48.600 actually pretty simple from a Senate procedural process, and from 0:01:48.600 --> 0:01:52.200 a House process. It's maybe technically difficult. You got to 0:01:52.200 --> 0:01:54.560 get those members back, as Tyler was just mentioning, but 0:01:54.840 --> 0:01:57.880 you strip out the DHS funding from the underlying package 0:01:57.880 --> 0:02:01.120 of bills, get unanimous consent in the Senate to do that, 0:02:01.240 --> 0:02:04.520 move ahead, and you avoid a shutdown of the Defense Department, 0:02:04.560 --> 0:02:07.360 a shutdown to the Labor Department, and we proceed to 0:02:07.800 --> 0:02:09.560 just focus on Ice Henrietta. 0:02:09.639 --> 0:02:11.000 Just two weeks ago, you had an odds of a 0:02:11.040 --> 0:02:14.240 government shut down twenty five percent. Now they skyrocketed, So 0:02:14.360 --> 0:02:16.520 you think now, what is the percentage that we will 0:02:16.520 --> 0:02:19.840 shut down on Friday? And how long will the shutdown be? 0:02:19.840 --> 0:02:22.400 Because remember we just got over in the fall, the 0:02:22.480 --> 0:02:24.240 longest ever government shutdown. 0:02:25.440 --> 0:02:27.799 I hear a lot of optimism behind the scenes from 0:02:27.840 --> 0:02:30.919 Democrats and Republicans that the path forward, as I just mentioned, 0:02:31.000 --> 0:02:31.800 is pretty simple. 0:02:32.080 --> 0:02:33.760 You just strip out DHS funding. 0:02:34.160 --> 0:02:37.359 And the problems for the White House is really optics. 0:02:37.360 --> 0:02:39.360 They have to sort of admit that there was a 0:02:39.400 --> 0:02:43.320 catastrophe in Minnesota and there needs to be remedies here 0:02:43.360 --> 0:02:46.359 and restrictions put on ice. The White House is tacitly 0:02:46.400 --> 0:02:49.640 acknowledging that already with the personnel moves. But my base 0:02:49.720 --> 0:02:52.239 case expectation is that they do find an off ramp here. 0:02:52.360 --> 0:02:55.720 Neither Republicans nor Democrats want this shutdown to happen, which 0:02:55.760 --> 0:02:58.519 is very different than the October first shutdown that we 0:02:58.560 --> 0:02:59.240 saw last year. 0:02:59.280 --> 0:03:02.400 Well, the President so called Governor Waltz yesterday and the 0:03:02.440 --> 0:03:05.080 mayor of Minnesota. Does that bode well for the White 0:03:05.120 --> 0:03:06.480 House or for Democrats? 0:03:06.520 --> 0:03:07.400 He's the one making that. 0:03:07.440 --> 0:03:10.520 Outreach, you know, I think this is a case where 0:03:10.560 --> 0:03:13.120 the American public is demanding change, and both sides are 0:03:13.120 --> 0:03:16.200 prepared to give a little bit. Whether that's going to 0:03:16.240 --> 0:03:20.040 be sufficient to get you changed to peace of legislation 0:03:20.080 --> 0:03:23.320 on the floor remains to be seen. But every side 0:03:23.480 --> 0:03:26.880 is recognizing that the killings have to stop, and it's 0:03:27.080 --> 0:03:30.960 so overwhelming in public polling that it's just obvious you 0:03:31.000 --> 0:03:33.400 need to put your partisanship aside. You can't be talking 0:03:33.440 --> 0:03:36.040 about the Second Amendment, you can't be talking about ICEL 0:03:36.040 --> 0:03:37.080 like it's okay right now. 0:03:37.120 --> 0:03:38.800 You got to move forward from both sides. 0:03:38.880 --> 0:03:41.000 So if we have this off RAM but the DHS 0:03:41.040 --> 0:03:43.880 funding stripped out, what do Democrats need to see to 0:03:43.960 --> 0:03:48.240 then sign up for DHS funding because majority leader Fund's 0:03:48.280 --> 0:03:49.880 going to need them to pass that through at the 0:03:49.960 --> 0:03:50.480 end of the day. 0:03:51.320 --> 0:03:54.160 Yeah, absolutely, I think that Democrats are still pulling together 0:03:54.400 --> 0:03:56.840 a concrete list of what they want. There were some 0:03:56.880 --> 0:04:00.480 conference calls throughout the day yesterday. I think the most 0:04:00.600 --> 0:04:04.680 extreme is probably for DHS head Christy Noam to resign, 0:04:05.080 --> 0:04:07.960 and that's definitely going to be something that stays on 0:04:08.000 --> 0:04:12.160 the front burner. She's actually scheduled to testify on March third, 0:04:12.200 --> 0:04:14.760 if I'm not mistaken, so her time in the spotlight 0:04:14.840 --> 0:04:17.280 hasn't really even begun yet, and I think that's going 0:04:17.360 --> 0:04:20.720 to be a major point of focus for the Democrats, 0:04:21.000 --> 0:04:23.080 and it's a convenient out for a lot of the 0:04:23.080 --> 0:04:25.960 Republicans who want to see some real visible change to 0:04:26.000 --> 0:04:28.880 the immigration policies that are really dragging the president down 0:04:28.920 --> 0:04:30.120 right now with the American public. 0:04:30.200 --> 0:04:31.240 I'm glad you brought that up. 0:04:31.279 --> 0:04:32.640 Do you think she is going to make it to 0:04:32.680 --> 0:04:36.039 that hearing because we have had Senator Tillis block all 0:04:36.040 --> 0:04:39.000 these DHS appointees until she decided to come on the 0:04:39.040 --> 0:04:41.919 Hill for hearing, and they've been dragging that out. 0:04:42.200 --> 0:04:45.279 Yeah, they really have. And March third is a really 0:04:45.400 --> 0:04:47.560 long time away. Think about what's going to come in 0:04:47.560 --> 0:04:49.360 between them. The President has to deliver a State of 0:04:49.360 --> 0:04:51.719 the Union address. Immigration is going to have to be 0:04:51.839 --> 0:04:55.680 in the forefront. You know. Hopefully there's no other escalation, 0:04:55.800 --> 0:04:59.080 and ICE really stepped back from its very aggressive sort 0:04:59.120 --> 0:05:02.120 of patrolling of the streets right now. You have a 0:05:02.160 --> 0:05:04.800 lot to do before we get to March third. I 0:05:04.800 --> 0:05:06.440 think the question of whether she makes it that long 0:05:06.520 --> 0:05:08.200 is a really good one. I don't know, but it's 0:05:08.240 --> 0:05:09.280 not a guarantee. 0:05:09.480 --> 0:05:12.480 Well, speaking of they Senator from North Carolina, he's got 0:05:12.480 --> 0:05:15.080 a big role to play in the process to nominate 0:05:15.120 --> 0:05:17.800 and confirm the next FED chair, Henrietta. I thought this 0:05:17.960 --> 0:05:21.080 was going to happen months and months ago. What's happening? 0:05:21.960 --> 0:05:23.800 You know, I've said this to clients quite a bit. 0:05:23.839 --> 0:05:25.640 If you think in the grand scheme of things of 0:05:25.640 --> 0:05:28.400 what's going on in DC, from trying to annex Greenland 0:05:28.440 --> 0:05:32.600 to raising tariffs in South Korea to the killings in Minnesota, 0:05:32.760 --> 0:05:37.359 the FED parlor game is actually the least you know, 0:05:37.760 --> 0:05:42.720 insane or really scary or problematic part of the administration's 0:05:42.760 --> 0:05:43.480 focus right now. 0:05:43.520 --> 0:05:44.400 They don't need. 0:05:44.279 --> 0:05:50.120 A predecessor for j. Powell until May, so they can 0:05:50.240 --> 0:05:52.360 drag this out. It's already been, you know, a couple 0:05:52.400 --> 0:05:54.760 of months past due. Secretary Besson said, you know it 0:05:54.800 --> 0:05:57.800 was coming at Davos. I think they got time, and 0:05:58.000 --> 0:06:00.120 I don't think it's a high stakes thing. Obviously the 0:06:00.600 --> 0:06:03.279 Street is very closely watching it, but it's really just 0:06:03.320 --> 0:06:05.800 a parlor game between a couple of options that the 0:06:05.839 --> 0:06:09.320 Street is pretty comfortable with. So as long as you know, 0:06:09.360 --> 0:06:11.599 even if there is a new hat thrown into the ring, 0:06:11.720 --> 0:06:15.080 like Secretary Bessett as a potential nominee, I don't think 0:06:15.080 --> 0:06:17.800 that that's comparatively a problem for the street, and the 0:06:17.800 --> 0:06:19.640 White House is happy to have that parlor rate game 0:06:19.720 --> 0:06:21.200 go on for a while longer. 0:06:21.560 --> 0:06:25.040 Stay with us, multplinbeg Savannah's coming up off to this. 0:06:34.320 --> 0:06:37.720 I have Mary Bara here, the CEO and chair at 0:06:37.720 --> 0:06:41.200 General Motors, I'm pleased to say, and Mary really knocking 0:06:41.240 --> 0:06:43.200 the cover off the ball with these earnings that you 0:06:43.240 --> 0:06:46.440 see with your outlook, more than two billion dollars in 0:06:46.560 --> 0:06:51.080 extra profit and profit jump for twenty twenty six. Let 0:06:51.120 --> 0:06:53.440 me start by asking what you attribute this to. Is 0:06:53.440 --> 0:06:57.960 it just the great sales and the financing of the 0:06:58.040 --> 0:07:00.839 higher margin vehicles like a Sierra Can Escalade. 0:07:02.320 --> 0:07:04.440 Well, first, I have to start by thanking the entire 0:07:04.480 --> 0:07:07.240 Generalmoters team, our suppliers, and our dealers for doing a 0:07:07.240 --> 0:07:10.680 phenomenal job. You know, twenty twenty five was an exceptional year, 0:07:11.200 --> 0:07:13.400 especially when you look at all the challenges that we face, 0:07:13.440 --> 0:07:15.240 and I think it really demonstrates one of the core 0:07:15.320 --> 0:07:18.680 capabilities of GM, and it's our agility and our resilience. 0:07:18.960 --> 0:07:21.680 But the core of it starts with our great product portfolio, 0:07:21.720 --> 0:07:25.440 whether it's very affordable evs like the Chevrolet Tracks all 0:07:25.440 --> 0:07:27.520 the way up to you know, a supercar like what's 0:07:27.600 --> 0:07:31.120 behind me with the Corvette ZR one x. 0:07:31.120 --> 0:07:32.600 So couldn't be more proud of the team. 0:07:32.960 --> 0:07:36.480 The ZR one x with twelve hundred and fifty horse power, 0:07:36.520 --> 0:07:39.880 it is indeed, I would call it a hypercar. Mary, 0:07:40.120 --> 0:07:42.960 That's not the bread and butter though for you. You 0:07:43.080 --> 0:07:48.000 really make these highly profitable, highly capable big trucks, and 0:07:48.440 --> 0:07:51.640 Americans are buying more of those and fewer. 0:07:51.320 --> 0:07:52.080 Of the evs. 0:07:52.120 --> 0:07:55.560 Do you expect to continue to sell fewer of the EV's. 0:07:55.640 --> 0:07:58.360 I know you took a seven billion dollar and change 0:07:58.400 --> 0:08:00.560 right down for that business in twenty twenty five. 0:08:02.280 --> 0:08:04.200 Well, you know the whole industry. We were on a 0:08:04.240 --> 0:08:07.320 path that we were working to get to forty to 0:08:07.320 --> 0:08:10.120 fifty percent evs by twenty thirty. So now that the 0:08:10.160 --> 0:08:13.760 regulatory environment has changed and the consumer incentives have gone, 0:08:14.080 --> 0:08:16.520 there is going to be slower EV adoption. We're still 0:08:16.520 --> 0:08:19.080 committed evs and we've got a great portfolio that we're 0:08:19.080 --> 0:08:21.400 working on taking costs out. But in the meantime, we 0:08:21.440 --> 0:08:24.600 also have a great internal combustion engine platform, and you're right, 0:08:24.920 --> 0:08:27.560 full size trucks are one of the strengths we have 0:08:28.200 --> 0:08:31.000 as well as full size SUVs, mid sized crossovers. So 0:08:31.040 --> 0:08:33.480 we really have a strong lineup across the board and 0:08:33.480 --> 0:08:36.520 that is really what is, you know, fueling our business success. 0:08:36.760 --> 0:08:40.079 I have had as the host of Hot Pursuit of 0:08:40.280 --> 0:08:43.480 Bloomberg podcast about cars, the opportunity to drive a lot 0:08:43.520 --> 0:08:47.200 of your evs, from the Sierra EV to the Hummer 0:08:47.280 --> 0:08:52.679 EV to the Escalade IQ, and they're fantastic products. Are 0:08:52.720 --> 0:08:56.120 you Are you not deterred that Americans aren't buying more 0:08:56.160 --> 0:08:59.600 of these vehicles? You know how capable, how capable they are, 0:08:59.640 --> 0:09:02.400 you know how we useful they are in daily life. 0:09:03.120 --> 0:09:06.120 What needs to happen for more Americans to buy these evs? 0:09:07.880 --> 0:09:10.199 Well, I think that consumer is very rational when they're 0:09:10.240 --> 0:09:11.800 making a decision about what CARDI by. 0:09:11.840 --> 0:09:12.960 Let's remember it's one. 0:09:12.800 --> 0:09:16.920 Of the most important and expensive decisions that they make. 0:09:17.240 --> 0:09:18.800 And one of the things we have to continue to 0:09:18.800 --> 0:09:21.440 work on to drive EV adoption is a more robust 0:09:21.520 --> 0:09:24.760 charging infrastructure, and that still is continuing to happen. So 0:09:24.840 --> 0:09:27.680 every quarter, more and more chargers are available. I think 0:09:27.880 --> 0:09:30.720 we as people in their individual communities, see that they've 0:09:30.720 --> 0:09:33.240 got a robust charging network and believe if they have 0:09:33.280 --> 0:09:34.920 to go on a road trip there's that as well. 0:09:34.960 --> 0:09:36.839 They're going to make that choice. And what we do 0:09:36.880 --> 0:09:39.880 see is once someone buys an EV, they see about that, 0:09:40.040 --> 0:09:43.280 they see the technology, they see the driving experience, never 0:09:43.360 --> 0:09:45.640 having to go to the gas station, and they stick 0:09:45.720 --> 0:09:48.200 with evs. So I think it will happen over time, 0:09:48.240 --> 0:09:50.800 and that's why during this period we've already got a 0:09:50.840 --> 0:09:53.559 great portfolio of EV's. We're going to continue to work 0:09:53.600 --> 0:09:56.480 take cost out to get our EV portfolio profitable, and 0:09:56.520 --> 0:09:59.120 we're going to be well positioned as EV demand grows 0:09:59.200 --> 0:10:00.560 over the next hand full of years. 0:10:00.840 --> 0:10:03.360 What about the hybrids, Mary, I mean, GM was really 0:10:03.400 --> 0:10:06.400 a front runner not only in EV technology, but in 0:10:06.520 --> 0:10:09.679 hybrid technology with the Chevy Volt. I remember when the 0:10:09.720 --> 0:10:12.000 Tahoe came out with a six lider gas engine and 0:10:12.800 --> 0:10:15.719 electric battery power. Will you start to sell more of 0:10:16.800 --> 0:10:18.120 the hybrid vehicles. 0:10:19.400 --> 0:10:22.600 Well, we have always focused. As you said, we have 0:10:22.679 --> 0:10:26.120 great hybrid technology, we have great EV technology. We're one 0:10:26.120 --> 0:10:30.000 of the few OEMs that invested in a dedicated EV 0:10:30.080 --> 0:10:32.560 platform that allows us to have the portfolio we have. 0:10:32.920 --> 0:10:37.360 So we're focused on the endgame and we have affordable evs. 0:10:37.640 --> 0:10:40.120 So I think that's where our primary focus is. We 0:10:40.200 --> 0:10:43.320 understand the technology, we have it in other regions, you'll 0:10:43.320 --> 0:10:46.200 see us with a handful of hybrids as we move forward, 0:10:46.400 --> 0:10:48.400 But right now, our focus is really on having the 0:10:48.480 --> 0:10:53.079 right internal combustion engine portfolio and the right EV portfolio 0:10:53.200 --> 0:10:56.160 moving forward. And I think we're demonstrating that that's a 0:10:56.200 --> 0:10:58.720 winning formula because over the last four years we've gained 0:10:58.720 --> 0:10:59.560 share each year. 0:11:00.160 --> 0:11:03.480 I wonder how much your racing efforts push towards that, 0:11:03.679 --> 0:11:05.640 And I know this is something I've talked about with 0:11:05.960 --> 0:11:08.040 your president Mark Royce on a number of occasions, but 0:11:08.080 --> 0:11:11.120 you're getting into so many more leagues. I watched the 0:11:11.200 --> 0:11:15.520 hypercars in Lament this summer and looking forward to watching 0:11:15.520 --> 0:11:17.880 you participate in Formula one. Do you think this really 0:11:18.160 --> 0:11:20.680 boosts your brand awareness around the world. 0:11:22.880 --> 0:11:25.240 Absolutely, we definitely see that it does. 0:11:25.280 --> 0:11:27.440 And I think when you look at Cadillac and the 0:11:27.480 --> 0:11:30.840 strength of Cadillac, it is true luxury, true American luxury. 0:11:31.280 --> 0:11:34.079 F one is the place that Cadillac should be showcased. 0:11:34.120 --> 0:11:36.720 So we're very proud to be a full works American team, 0:11:37.160 --> 0:11:42.000 anxious to enter this year in Australia, but I think 0:11:42.000 --> 0:11:44.160 it's going to be very important for the Cadillac brand, 0:11:44.320 --> 0:11:46.640 and we do have a really robust program that takes 0:11:46.679 --> 0:11:49.200 what we learn on the track and we incorporate into 0:11:49.200 --> 0:11:51.959 our vehicles to make our vehicles better. It's true for 0:11:52.600 --> 0:11:55.760 Chevrolet as well as Cadillac and the entire portfolio. 0:11:56.360 --> 0:12:02.080 I got to ask about the finance arm. GM Financial 0:12:02.160 --> 0:12:05.200 provided a massive liquidity buffer I think thirty six billion 0:12:05.960 --> 0:12:10.600 dollars there. How do you think about, because you're doing buybacks, 0:12:10.600 --> 0:12:12.760 returning a lot of cash to shareholders. I'm sure they're 0:12:12.760 --> 0:12:14.920 happy about the stock is near an all time high, 0:12:14.960 --> 0:12:18.480 but how do you think about putting that aside for 0:12:18.640 --> 0:12:22.840 protection versus supporting shareholder returns, you know, in case the 0:12:22.840 --> 0:12:24.280 autocycle turns at some point. 0:12:25.800 --> 0:12:29.280 Well, we've indicated that eighteen to twenty billion is our 0:12:29.320 --> 0:12:32.080 cash target. Last year we finished the year strong at 0:12:32.120 --> 0:12:35.120 around twenty two billion, and we have a capital allocation 0:12:35.200 --> 0:12:38.520 framework of first reinvesting in the business, second making sure 0:12:38.559 --> 0:12:40.959 that we have an investment grade balance sheet, and then 0:12:41.000 --> 0:12:43.600 returning cash to shareholders. And we think, based on the 0:12:43.600 --> 0:12:45.840 strength of our business and the cash that we generate, 0:12:46.080 --> 0:12:48.400 we can continue to do that well. 0:12:48.480 --> 0:12:49.760 And that's where our focus is. 0:12:50.400 --> 0:12:53.439 You know, the financial arm has added I think more 0:12:53.440 --> 0:12:56.560 than two billion dollars to twenty twenty five profits, So 0:12:56.600 --> 0:12:59.920 it's really a contributor, kind of a quiet profit stable lot. 0:13:00.520 --> 0:13:03.920 Is that turning though, as delinquencies and charge offs rise 0:13:04.040 --> 0:13:05.920 a little bit? Is that starting to concern you as 0:13:05.920 --> 0:13:08.199 consumer balance sheets fin out. 0:13:09.480 --> 0:13:09.640 Well? 0:13:09.679 --> 0:13:11.839 It's something that we watch very closely that I think 0:13:11.920 --> 0:13:14.839 GMF does a great job in their business, and it 0:13:14.920 --> 0:13:17.600 is a very important business. Shout out to the gm 0:13:17.679 --> 0:13:20.160 Financial team for the great work they do. It's also 0:13:20.360 --> 0:13:23.640 very important from a loyalty perspective because having a captive 0:13:24.360 --> 0:13:27.360 and being able to interface with a consumer on a 0:13:27.360 --> 0:13:29.960 monthly basis as they make their car payments, I think 0:13:30.040 --> 0:13:33.320 is just part of the ecosystem that we're building to 0:13:33.440 --> 0:13:36.680 really make sure we have that great relationship with the customer, 0:13:36.679 --> 0:13:38.920 and it shows that we have the highest loyalty in 0:13:38.960 --> 0:13:40.440 the US of any OEM. 0:13:42.080 --> 0:13:46.680 I look at loan originations in the fourth quarter and 0:13:46.679 --> 0:13:49.760 I see that they're down pretty substantially, about twenty one percent, 0:13:49.800 --> 0:13:53.360 and I wonder if that's a deliberate choice by GMF. 0:13:53.520 --> 0:13:58.720 Are you tightening your credit standards or is that reflecting 0:13:58.760 --> 0:14:02.280 a softer demand today? Rates and prices which are both 0:14:02.320 --> 0:14:04.120 fairly high. 0:14:04.200 --> 0:14:06.800 Well, the car company and the finance company. They work 0:14:06.840 --> 0:14:08.840 together to make sure we have the right equation and 0:14:08.840 --> 0:14:12.800 what's going to optimize profitability for the enterprise. And so 0:14:13.080 --> 0:14:15.679 I don't think you can look at one quarter. It 0:14:15.679 --> 0:14:17.600 goes up and down depending on what's happening in the 0:14:17.600 --> 0:14:18.440 external world. 0:14:18.640 --> 0:14:20.160 But GMF is a very. 0:14:20.000 --> 0:14:24.200 Important part of our portfolio of companies, and again, as 0:14:24.240 --> 0:14:26.840 I said, it works in concert with the car company 0:14:27.160 --> 0:14:29.240 to make sure that we have a strong business overall. 0:14:29.600 --> 0:14:31.560 I have to when I think of credit standards, I 0:14:31.560 --> 0:14:35.040 think of First Brands among some of the other businesses 0:14:35.080 --> 0:14:38.480 that have fallen to Chapter eleven this year. And I 0:14:38.520 --> 0:14:40.920 saw a report in the Financial Times overnight that you, 0:14:41.200 --> 0:14:45.440 along with Ford, your crosstown rivals, are negotiating to help 0:14:46.040 --> 0:14:48.600 send them a rescue line of sorts. Can you comment 0:14:48.640 --> 0:14:51.840 on that at all, Mary. 0:14:50.800 --> 0:14:53.160 Well, what we're very much focused on is while we 0:14:53.840 --> 0:14:57.000 make sure we have secure supply is that transition period. 0:14:57.000 --> 0:14:59.800 So I think what you see General Motors and other 0:15:00.000 --> 0:15:02.000 ims working together to do is make sure that we 0:15:02.040 --> 0:15:05.360 don't have supply chain disruptions because of their financial situation. 0:15:05.840 --> 0:15:06.920 We've been working on it. 0:15:06.960 --> 0:15:09.560 But I think as we look at you know, the immediate, 0:15:09.600 --> 0:15:12.920 what's happening next week, next month. That's the work that 0:15:12.920 --> 0:15:15.920 we're doing, as well as in parallel making sure we 0:15:16.000 --> 0:15:18.520 have longer term supplies. So that's what you're seeing with 0:15:18.560 --> 0:15:19.200 that announcement. 0:15:19.400 --> 0:15:21.280 When you talk about a supply chain, I think about 0:15:21.320 --> 0:15:24.160 the concessions you're able to get out of your suppliers. 0:15:24.280 --> 0:15:27.360 I know that you're trying to keep costs down. You're 0:15:27.760 --> 0:15:30.000 under a thread of tariffs or you already face tariffs, 0:15:30.040 --> 0:15:32.200 and a lot of the places you've produced, how much 0:15:32.240 --> 0:15:34.360 of those tariffs have you been able to pass through 0:15:34.640 --> 0:15:38.800 to consumers where you haven't been able to cut costs 0:15:38.880 --> 0:15:40.560 or get concessions from suppliers. 0:15:41.840 --> 0:15:43.760 I think if you look at our portfolio, I think 0:15:43.840 --> 0:15:46.080 you know, for the most part, we've worked to offset 0:15:46.080 --> 0:15:51.720 it and with efficiencies across the board, making smart decisions 0:15:51.760 --> 0:15:55.240 on where we produce, and so very little has gone 0:15:55.240 --> 0:15:59.280 to the consumer because we are such a cost sensitive 0:15:59.320 --> 0:16:02.560 business and it's such a competitive business. But we continue 0:16:02.560 --> 0:16:04.560 to look at all those levers and we stay focused 0:16:04.600 --> 0:16:06.000 on consumer affordability. 0:16:06.160 --> 0:16:09.960 You're operating Mary in the heart of America, and America's 0:16:10.040 --> 0:16:14.040 undergone some really tough times, especially over the last few 0:16:14.040 --> 0:16:16.480 weeks in Minnesota. What are you doing, What is General 0:16:16.480 --> 0:16:19.560 Motors doing to kind of keep the temperature down to 0:16:19.640 --> 0:16:22.640 kind of keep the calm at your company and with 0:16:22.760 --> 0:16:23.480 your suppliers. 0:16:24.760 --> 0:16:27.240 Well, we want to make sure that everyone stays focused 0:16:27.320 --> 0:16:30.240 on the business and is part of the solution, meaning 0:16:30.280 --> 0:16:32.720 de escalating. I believe that's starting to happen. So that's 0:16:32.760 --> 0:16:34.160 what we continue to reinforce. 0:16:34.880 --> 0:16:38.320 Stay with us. Mulblemberg. Savannah's coming up off to this 0:16:47.680 --> 0:16:49.880 a sensitive federal reserve. The Central Bank is set to 0:16:49.920 --> 0:16:52.400 make his first right decision of the YA tomorrow as 0:16:52.400 --> 0:16:55.000 threats to FED independence build. Joining us now is the 0:16:55.080 --> 0:16:58.080 former Kansas City FED president as the George as the 0:16:58.200 --> 0:17:00.720 welcome bank to the program. Before we get into substance, 0:17:01.080 --> 0:17:04.119 the Economic Bank drop the policy. I want to pick 0:17:04.240 --> 0:17:07.880 up on the more assertive stunts, the more aggressive posture, 0:17:07.920 --> 0:17:10.000 if you will. The Chairman Pouse seemed to be taken 0:17:10.040 --> 0:17:13.160 this year to defend central Bank independence. I'd love your 0:17:13.160 --> 0:17:15.399 reaction to that and whether you believe he'll carry that 0:17:15.440 --> 0:17:17.640 into the news conference tomorrow afternoon. 0:17:19.040 --> 0:17:19.200 Yeah. 0:17:19.320 --> 0:17:23.560 Good, Marnie, Jonathan. I think the Chairman had to take 0:17:23.600 --> 0:17:27.240 this move. I think we have been dancing around these 0:17:27.280 --> 0:17:31.960 threats to independence and really trying not to make too 0:17:32.040 --> 0:17:35.199 much of it. But I think the Chairman reached a 0:17:35.280 --> 0:17:39.480 point where he really did have to speak out and 0:17:40.920 --> 0:17:44.359 send a message to the public about how important the 0:17:44.400 --> 0:17:46.760 decision making of the Central Bank is that it not 0:17:46.880 --> 0:17:50.080 get caught up in political issues. And as you saw, 0:17:50.560 --> 0:17:55.680 the reaction from around the world from former policy makers 0:17:56.200 --> 0:17:58.160 was quite supportive of that, as was I. 0:17:58.680 --> 0:18:01.080 That's when it comes to the video he released in 0:18:01.160 --> 0:18:03.680 reaction to the subpoena from the DOJ. But he also 0:18:03.760 --> 0:18:06.240 recently went to the Supreme Court to attend the hearing 0:18:06.640 --> 0:18:09.520 of Lisa Cook, and the administration said that he was 0:18:09.600 --> 0:18:13.800 now politicizing that hearing. What's your reaction to that movement 0:18:13.880 --> 0:18:16.159 from J Powell? 0:18:16.359 --> 0:18:20.440 Well, I think the Supreme Court's decision is absolutely consequential 0:18:20.560 --> 0:18:24.280 to the future of the Federal Reserve and thinking about 0:18:25.000 --> 0:18:30.600 how this body will weigh in on the ability of 0:18:30.800 --> 0:18:35.000 removing FED governors. So clearly, I think as a leader 0:18:35.200 --> 0:18:40.200 of this institution, his interest would be high and understanding 0:18:40.320 --> 0:18:43.080 how the courts might be talking about this and what 0:18:43.119 --> 0:18:45.200 the arguments are that are presented. 0:18:45.359 --> 0:18:47.240 I didn't view that as a political. 0:18:46.800 --> 0:18:49.800 One given these stances we have seen from him, do 0:18:49.840 --> 0:18:51.720 you think in the press conference he's going to be 0:18:51.760 --> 0:18:55.040 more willing to engage when reporters obviously ask a number 0:18:55.040 --> 0:18:57.600 of questions that are really on this line when it 0:18:57.600 --> 0:18:58.600 comes to politics. 0:19:00.080 --> 0:19:02.520 Well, I'm quite sure he's going to get a number 0:19:02.520 --> 0:19:05.800 of questions, and I suspect he will address them at 0:19:05.800 --> 0:19:09.760 the same time, though, trying to keep the focus on 0:19:09.840 --> 0:19:12.520 what it is this committee is really focused on, and 0:19:12.560 --> 0:19:16.640 that is responding to economic conditions in the United States, 0:19:16.680 --> 0:19:19.680 and so yes, I think he will have to address 0:19:20.920 --> 0:19:23.480 what are likely to be a number of questions, and 0:19:23.600 --> 0:19:26.200 he may do so in the fashion he did in 0:19:26.240 --> 0:19:30.920 his previous statement. Again bringing it back though to this 0:19:30.960 --> 0:19:33.159 is the job of the Central Bank and where he 0:19:33.280 --> 0:19:35.160 most likely will want to focus today. 0:19:35.240 --> 0:19:37.760 As did you think that the economic backdrop at the 0:19:37.800 --> 0:19:39.600 moment gives them the space the hit post for a 0:19:39.640 --> 0:19:40.160 little while. 0:19:41.600 --> 0:19:45.200 Yeah, I agree that it's time to take a breath 0:19:45.520 --> 0:19:48.080 on these rate cuts. They've made a number of cuts 0:19:48.119 --> 0:19:51.800 that are still feeding through the economy, and so I 0:19:51.840 --> 0:19:56.119 think it makes sense in the face of elevated inflation 0:19:56.720 --> 0:20:00.480 and what seems to be coming this year, that it 0:20:00.480 --> 0:20:02.760 would be a good time to pause and really take 0:20:02.920 --> 0:20:06.560 stock of how they assess the economy on both sides 0:20:06.560 --> 0:20:07.199 of their mandate. 0:20:07.359 --> 0:20:09.359 What do you expect is coming this year on the 0:20:09.359 --> 0:20:11.560 inflation side. 0:20:11.840 --> 0:20:16.040 Well, my own view, Jonathan is that inflation is something 0:20:16.080 --> 0:20:19.320 we've got to keep a careful eye on because I 0:20:19.440 --> 0:20:23.439