1 00:00:00,080 --> 00:00:08,600 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:08,640 --> 00:00:12,400 Speaker 1: Bloomberg Balance of Power Podcasts. Catch us live weekdays at 3 00:00:12,400 --> 00:00:15,680 Speaker 1: noon and five pm Eastern on Apple Cocklay and Android 4 00:00:15,680 --> 00:00:18,680 Speaker 1: Auto with the Bloomberg Business App. You can also listen 5 00:00:18,760 --> 00:00:22,040 Speaker 1: live on Amazon Alexa from our flagship New York station 6 00:00:22,560 --> 00:00:26,639 Speaker 1: Just Say Alexa played Bloomberg eleven thirty for. 7 00:00:26,800 --> 00:00:29,200 Speaker 2: Just about fifty four minutes. Away from that rate decision, 8 00:00:29,200 --> 00:00:31,520 Speaker 2: which of course is expected to be no change in 9 00:00:31,640 --> 00:00:35,080 Speaker 2: rates at all. Chairman Powell and company expected to leave 10 00:00:35,080 --> 00:00:38,360 Speaker 2: them unchanged, probably talk about the flexibility they have to 11 00:00:38,400 --> 00:00:40,400 Speaker 2: continue to do so and watch as the data comes 12 00:00:40,400 --> 00:00:42,839 Speaker 2: in as they consider it the policies coming from the 13 00:00:42,840 --> 00:00:46,600 Speaker 2: Trump administration, inclusive of course, of tariffs. This was a 14 00:00:46,600 --> 00:00:49,680 Speaker 2: subject that the Treasury Secretary Scott Besson just got a 15 00:00:49,720 --> 00:00:52,800 Speaker 2: lot of questions about in his testimony between the before 16 00:00:52,840 --> 00:00:55,240 Speaker 2: the House Financial Services Committee, of course, is second day 17 00:00:55,240 --> 00:00:58,680 Speaker 2: in a row on Capitol Hill this week, answering questions 18 00:00:58,680 --> 00:01:01,240 Speaker 2: about this what it would do to costs for consumers 19 00:01:01,880 --> 00:01:07,000 Speaker 2: baby products, for example, but also the state of negotiations 20 00:01:07,560 --> 00:01:11,319 Speaker 2: with different countries. Remembering we heard from the Secretary in 21 00:01:11,360 --> 00:01:14,400 Speaker 2: his testimony yesterday that negotiations had not yet in fact 22 00:01:14,440 --> 00:01:17,880 Speaker 2: begun with China in particular, which currently has one hundred 23 00:01:17,880 --> 00:01:20,520 Speaker 2: and twenty five percent retaliatory tariff in all US goods, 24 00:01:20,560 --> 00:01:22,559 Speaker 2: because the US has one hundred and forty five percent 25 00:01:22,600 --> 00:01:27,600 Speaker 2: tariff on Chinese goods. But those conversations will begin shortly. 26 00:01:28,440 --> 00:01:31,800 Speaker 2: We heard about it from the Treasury Secretary himself previewing 27 00:01:32,040 --> 00:01:33,800 Speaker 2: what's to come in Switzerland this evening. 28 00:01:34,760 --> 00:01:39,440 Speaker 3: I will be going to Switzerland and the negotiations will 29 00:01:39,440 --> 00:01:44,759 Speaker 3: begin on Saturday. The trade negotiations will be led by 30 00:01:44,800 --> 00:01:49,080 Speaker 3: myself and Ambassador Jamison Greer and USTR. 31 00:01:50,440 --> 00:01:55,360 Speaker 4: What about Pete Navarro, Sorry, Peter Navarro. 32 00:01:55,640 --> 00:01:58,200 Speaker 3: He will not be joining us in Genevo. 33 00:02:00,320 --> 00:02:03,680 Speaker 2: So the Treasury Secretary and the US Trade representative, not 34 00:02:03,800 --> 00:02:06,440 Speaker 2: trade advisor at the White House, Peter Navarro planning for 35 00:02:06,520 --> 00:02:09,600 Speaker 2: talks in Switzerland this weekend, not this evening, as I 36 00:02:09,600 --> 00:02:11,120 Speaker 2: said a moment ago. But we want to get more 37 00:02:11,120 --> 00:02:13,560 Speaker 2: on that in the rest of the Treasury Secretary's testimony. 38 00:02:13,560 --> 00:02:16,560 Speaker 2: And turn now to Bloomberg's Tyler Kendall, Washington correspondent who 39 00:02:16,600 --> 00:02:20,040 Speaker 2: is live outside the committee room on Capitol Hill. Tyler, 40 00:02:20,080 --> 00:02:21,680 Speaker 2: A lot went down in the last few hours. 41 00:02:23,960 --> 00:02:25,840 Speaker 5: Yeah, Kayley, And in fact, we couldn't have time this 42 00:02:25,919 --> 00:02:29,119 Speaker 5: more perfectly because the Treasury Secretary is actually walking out 43 00:02:29,480 --> 00:02:33,160 Speaker 5: right now, mister Bessett, Mister secretary, will you lower Chinese 44 00:02:33,240 --> 00:02:35,000 Speaker 5: tariffs this weekend during negotiations? 45 00:02:36,240 --> 00:02:36,600 Speaker 6: All right? 46 00:02:36,639 --> 00:02:38,280 Speaker 5: Well, that was one of our tries, one of our 47 00:02:38,320 --> 00:02:42,000 Speaker 5: big leading questions here as we wait to see what 48 00:02:42,120 --> 00:02:44,480 Speaker 5: potentially could come out of those negotiations as they do 49 00:02:44,560 --> 00:02:47,600 Speaker 5: head to Geneva over the weekend. As you mentioned and 50 00:02:47,639 --> 00:02:50,000 Speaker 5: played that side, Peter Navarro not expected to be in 51 00:02:50,040 --> 00:02:51,160 Speaker 5: those talks when it comes. 52 00:02:51,240 --> 00:02:51,480 Speaker 7: Though. 53 00:02:51,560 --> 00:02:55,200 Speaker 5: Broadly, speaking about these trade negotiations, the Treasury Secretary did 54 00:02:55,240 --> 00:02:58,200 Speaker 5: say that we could still expect to see some sort 55 00:02:58,240 --> 00:03:01,560 Speaker 5: of principal agreements in principle as he called them, as 56 00:03:01,600 --> 00:03:03,800 Speaker 5: soon as this week, and that they would later paper 57 00:03:03,880 --> 00:03:06,079 Speaker 5: those deals over in the months ahead to make them 58 00:03:06,120 --> 00:03:08,600 Speaker 5: fully fledged agreements. We have yet to get any update 59 00:03:08,760 --> 00:03:11,960 Speaker 5: from the White House on when those potentially could be coming. 60 00:03:12,000 --> 00:03:14,399 Speaker 5: Sticking with China, though, it was interesting because he said 61 00:03:14,400 --> 00:03:18,040 Speaker 5: that the Treasury was working with legislators on outbound investment 62 00:03:18,120 --> 00:03:20,440 Speaker 5: rules for China that would make it clear what's allowed 63 00:03:20,440 --> 00:03:24,560 Speaker 5: in and what's not. He said it would basically amount 64 00:03:24,680 --> 00:03:26,840 Speaker 5: to a red light green light system to be used 65 00:03:26,880 --> 00:03:29,919 Speaker 5: as a national security tool in order to restrict China 66 00:03:29,960 --> 00:03:34,200 Speaker 5: from allegedly exploiting American capital quickly. I would also like 67 00:03:34,240 --> 00:03:36,920 Speaker 5: to add Kiley that when asked directly, when it came 68 00:03:37,000 --> 00:03:39,200 Speaker 5: from China to actually Russia, when asked directly if you 69 00:03:39,200 --> 00:03:41,720 Speaker 5: thought that Vladimir Putin was a war criminal, he answered 70 00:03:41,760 --> 00:03:44,400 Speaker 5: in the affirmative yes, but that ultimately you do need 71 00:03:44,440 --> 00:03:46,720 Speaker 5: to negotiate with both sides, that is the nature of 72 00:03:46,760 --> 00:03:49,920 Speaker 5: diplomacy in order to get a deal done. I will 73 00:03:49,960 --> 00:03:52,080 Speaker 5: also add, of course, we can't talk about this administration's 74 00:03:52,120 --> 00:03:55,200 Speaker 5: economic policies without also pointing to the tax cuts and 75 00:03:55,200 --> 00:04:00,200 Speaker 5: the reconciliation package. Treasury Secretary Best and perhaps one of 76 00:04:00,280 --> 00:04:05,960 Speaker 5: his more contentious exchanges with one Democratic congressman, did say 77 00:04:06,040 --> 00:04:09,520 Speaker 5: that he thinks the deficit to GDP ratio will stabilize 78 00:04:09,600 --> 00:04:13,600 Speaker 5: and go down over time if this reconciliation package passes, 79 00:04:13,600 --> 00:04:16,120 Speaker 5: But when pressed by that congressman, he did say that 80 00:04:16,200 --> 00:04:18,920 Speaker 5: long term debt will likely go up if the bill passes, 81 00:04:18,960 --> 00:04:22,520 Speaker 5: but if GDP goes up faster, then it wouldn't really matter. 82 00:04:22,839 --> 00:04:24,960 Speaker 5: He did affirm that the US will always meet its 83 00:04:25,040 --> 00:04:27,719 Speaker 5: debt obligations and did not give us an update on 84 00:04:27,800 --> 00:04:30,880 Speaker 5: a potential X state, instead saying that it's a moving target. 85 00:04:30,960 --> 00:04:32,440 Speaker 5: Of course, as you well know, we have been watching 86 00:04:32,520 --> 00:04:35,000 Speaker 5: that very closely because that's considered to be that sort 87 00:04:35,000 --> 00:04:37,840 Speaker 5: of hard deadline when it comes to things on when 88 00:04:37,920 --> 00:04:41,000 Speaker 5: these lawmakers are going to have to pass that reconciliation 89 00:04:41,080 --> 00:04:43,000 Speaker 5: package in order to let the debt ceiling. 90 00:04:44,279 --> 00:04:47,800 Speaker 2: And Tyler just quickly on that Secretary Besset will also 91 00:04:47,839 --> 00:04:49,839 Speaker 2: be partaking in another one of the so called Big 92 00:04:49,880 --> 00:04:51,839 Speaker 2: Six meetings on reconciliation today. 93 00:04:51,839 --> 00:04:53,880 Speaker 8: Do we expect today to be a day of real progress? 94 00:04:56,640 --> 00:04:58,680 Speaker 5: At this point, we haven't really seen much progress and 95 00:04:58,680 --> 00:05:00,240 Speaker 5: can I can tell you behind me you actually might 96 00:05:00,240 --> 00:05:01,840 Speaker 5: be able to see it. There is a duel hearing 97 00:05:01,920 --> 00:05:03,839 Speaker 5: going on in the Energy and Commerce Committee and they 98 00:05:03,880 --> 00:05:06,480 Speaker 5: are trying to figure out exactly how to shift through 99 00:05:06,480 --> 00:05:09,200 Speaker 5: the debate when it comes to potentially medicaid cuts. That 100 00:05:09,360 --> 00:05:11,920 Speaker 5: is one of the biggest let miss tests here, if 101 00:05:11,920 --> 00:05:14,599 Speaker 5: you will, that Republicans really do have to find. We 102 00:05:14,640 --> 00:05:16,840 Speaker 5: even saw that House Speaker Mike Johnson recently said that 103 00:05:16,880 --> 00:05:19,440 Speaker 5: the eight hundred and eighty billion dollar target over ten 104 00:05:19,520 --> 00:05:22,560 Speaker 5: years is likely very ambitious. As of now, Kelley, we're 105 00:05:22,560 --> 00:05:25,800 Speaker 5: tracking that they're negotiating potentially work requirements, but how expansive 106 00:05:26,080 --> 00:05:27,480 Speaker 5: that would be remains to be seen. 107 00:05:28,680 --> 00:05:31,279 Speaker 2: All right, Bloomberg's Tyler Kendall live on Capitol Hill and 108 00:05:31,320 --> 00:05:33,360 Speaker 2: trying her best to get one more answer out of 109 00:05:33,400 --> 00:05:35,760 Speaker 2: the Treasury Secretary after his hours of testimony. 110 00:05:35,800 --> 00:05:36,520 Speaker 8: Thank you so much. 111 00:05:36,680 --> 00:05:39,160 Speaker 2: Here live on Bloomberg TV and Radio and joining us now, 112 00:05:39,200 --> 00:05:42,800 Speaker 2: also from Capitol Hill, but instead of the committee hearing room, 113 00:05:43,040 --> 00:05:46,320 Speaker 2: from the Rotunda's Republican Congressman Greg Murphy of North Carolina, 114 00:05:46,360 --> 00:05:48,440 Speaker 2: who happens to be a member of the House Ways 115 00:05:48,440 --> 00:05:52,160 Speaker 2: and Means Committee, which is also meeting on reconciliation today. Congressman, 116 00:05:52,200 --> 00:05:54,560 Speaker 2: you're very kind to step out for us, as I 117 00:05:54,560 --> 00:05:57,200 Speaker 2: know there were some important conversations happening between you and 118 00:05:57,240 --> 00:05:59,359 Speaker 2: your colleagues on the committee earlier. Can you give us 119 00:05:59,400 --> 00:06:02,479 Speaker 2: any insight as to whether or not tangible progress has 120 00:06:02,520 --> 00:06:05,440 Speaker 2: been made, particularly on the issue of the salt. 121 00:06:05,200 --> 00:06:08,880 Speaker 9: Cap Yeah, you know, well, Chairman Smith has worn us 122 00:06:08,880 --> 00:06:10,600 Speaker 9: to secrecy, but I will tell you that we've been 123 00:06:10,640 --> 00:06:13,880 Speaker 9: making definite progress really over the last three or four weeks, 124 00:06:13,880 --> 00:06:17,280 Speaker 9: if not several months on trying to get a solid package. Obviously, 125 00:06:17,360 --> 00:06:20,000 Speaker 9: SALT is very concerning to some of the members where 126 00:06:20,000 --> 00:06:22,880 Speaker 9: you have California and New York, which have insane taxes 127 00:06:22,920 --> 00:06:26,600 Speaker 9: on their citizens. We're trying to put to something into 128 00:06:26,640 --> 00:06:29,760 Speaker 9: a package that will help alleviate some of some of 129 00:06:29,800 --> 00:06:32,479 Speaker 9: the tax burn that they have. That said, you know, Kelly, 130 00:06:32,600 --> 00:06:35,040 Speaker 9: the bottom line is we have to worry about our debt, 131 00:06:35,080 --> 00:06:38,120 Speaker 9: and as the Secretary said, our debt to GDP ratio 132 00:06:38,520 --> 00:06:41,160 Speaker 9: really right now is killing us. So when we bring 133 00:06:41,279 --> 00:06:44,160 Speaker 9: all these discussions together, we have to worry about one 134 00:06:44,200 --> 00:06:47,559 Speaker 9: singular thing. It is the singular focus on our debt, 135 00:06:47,640 --> 00:06:50,520 Speaker 9: and we're trying to have pro growth tax policies to 136 00:06:50,640 --> 00:06:53,599 Speaker 9: grow that GDP, to make sure that it is higher 137 00:06:53,600 --> 00:06:55,960 Speaker 9: than our debt ratio, and so we try to grow 138 00:06:56,000 --> 00:06:58,240 Speaker 9: ourselves really into a place of stability. 139 00:07:00,080 --> 00:07:02,600 Speaker 2: Well, Congressman, I understand the Chairman may not want you 140 00:07:02,640 --> 00:07:04,720 Speaker 2: to reveal too many details, but he in fact spoke 141 00:07:04,760 --> 00:07:07,240 Speaker 2: with my colleague Julie Fine yesterday and suggested that when 142 00:07:07,240 --> 00:07:10,720 Speaker 2: it comes to SALT particularly, everyone is going to end 143 00:07:10,800 --> 00:07:14,360 Speaker 2: up unhappy with whatever compromise is made. With the way 144 00:07:14,400 --> 00:07:16,920 Speaker 2: things are tracking now in conversation. Do you expect there 145 00:07:16,960 --> 00:07:19,280 Speaker 2: will be more unhappiness from some of those blue state 146 00:07:19,880 --> 00:07:22,720 Speaker 2: Salt Caucus members or those who don't think the salt 147 00:07:22,800 --> 00:07:24,320 Speaker 2: cap should be materially lifted. 148 00:07:24,800 --> 00:07:27,360 Speaker 9: Well, I think it is attention. It is a battle 149 00:07:27,600 --> 00:07:30,040 Speaker 9: we have where we're worrying about our deficit, but those 150 00:07:30,080 --> 00:07:32,560 Speaker 9: members in California and New York, the high tax states, 151 00:07:32,880 --> 00:07:35,920 Speaker 9: really do want some relief. Yeah, everybody's probably going to 152 00:07:35,920 --> 00:07:39,600 Speaker 9: be proportionally unhappy as we move forward with this, but 153 00:07:39,680 --> 00:07:42,200 Speaker 9: that's what would happen with all the text packages are 154 00:07:42,320 --> 00:07:44,640 Speaker 9: They're going to be some winners and some losers, but 155 00:07:44,680 --> 00:07:47,200 Speaker 9: they're all going to be winners and losers in some regard. 156 00:07:49,400 --> 00:07:52,120 Speaker 2: And Congressman, as you were just alluding to the Treasury 157 00:07:52,120 --> 00:07:56,400 Speaker 2: Secretary's testimony around the debt to GDP ratio specifically, which 158 00:07:56,400 --> 00:07:59,080 Speaker 2: he said is something that even the former Treasury Secretary 159 00:07:59,160 --> 00:08:02,680 Speaker 2: Janet Yellen watch rather than the sheer level of the deficit. 160 00:08:02,760 --> 00:08:05,640 Speaker 2: When he was pushed under questioning if that deficit number 161 00:08:05,640 --> 00:08:08,280 Speaker 2: itself was likely to go higher, he did say yes, 162 00:08:08,320 --> 00:08:11,240 Speaker 2: And I wonder if that is an acceptable outcome to 163 00:08:11,360 --> 00:08:12,400 Speaker 2: you as a Republican. 164 00:08:13,080 --> 00:08:15,400 Speaker 9: Well, we want the bottom line is we want the 165 00:08:15,440 --> 00:08:18,320 Speaker 9: American economy to be able to the American government be 166 00:08:18,360 --> 00:08:20,720 Speaker 9: able to repay its debts. That's the bottom line. It 167 00:08:20,760 --> 00:08:24,520 Speaker 9: really doesn't matter specifically on numbers. The real crux of 168 00:08:24,520 --> 00:08:26,280 Speaker 9: the matter is can we pay back our debts? And 169 00:08:26,320 --> 00:08:30,200 Speaker 9: if we're growing our economy greater than we're producing a deficit, 170 00:08:30,320 --> 00:08:32,480 Speaker 9: that is the goal. That is the goal itself. So 171 00:08:32,600 --> 00:08:35,640 Speaker 9: real numbers themselves are great, but you literally look at 172 00:08:35,760 --> 00:08:38,400 Speaker 9: ratios as to really what the most important factor is. 173 00:08:40,240 --> 00:08:42,640 Speaker 2: Well, and of course spending has to factor into this 174 00:08:43,120 --> 00:08:47,000 Speaker 2: as well, specifically where spending cuts have been identified or 175 00:08:47,040 --> 00:08:49,200 Speaker 2: will be identified in Congressman, I don't have to tell you, 176 00:08:49,240 --> 00:08:51,880 Speaker 2: as we just heard from my colleague Tyler, Medicaid is 177 00:08:52,000 --> 00:08:54,480 Speaker 2: very much in question in this argument. This is something 178 00:08:54,480 --> 00:08:57,640 Speaker 2: that the Senate Minority Leader, Chuck Schumer of New York 179 00:08:57,640 --> 00:09:00,240 Speaker 2: spoke to us about here on Bloomberg yesterday, and this 180 00:09:00,280 --> 00:09:02,600 Speaker 2: is what he said about Medicaid cuts in particular. 181 00:09:03,320 --> 00:09:06,440 Speaker 7: We ask them give us specific examples of waste when 182 00:09:06,480 --> 00:09:09,360 Speaker 7: they're cutting Medicaid, and they failed to come up with 183 00:09:09,400 --> 00:09:12,400 Speaker 7: them or have one anecdotal thing that can even be proven. 184 00:09:12,800 --> 00:09:15,640 Speaker 7: We know that they want to slash Medicaid, not because 185 00:09:15,640 --> 00:09:18,160 Speaker 7: of waste, but for one reason, and that is to 186 00:09:18,160 --> 00:09:21,040 Speaker 7: give tax breaks to the wealthiest people in this country. 187 00:09:21,440 --> 00:09:23,120 Speaker 7: You know, God bless the people who made a lot 188 00:09:23,120 --> 00:09:25,360 Speaker 7: of money, but they don't need a tax break, certainly 189 00:09:25,360 --> 00:09:28,840 Speaker 7: when you're cutting Medicaid, which is going to cause huge layoffs, 190 00:09:29,000 --> 00:09:32,920 Speaker 7: decline in healthcare, and closure of hospitals and nursing homes. 191 00:09:35,080 --> 00:09:37,960 Speaker 2: And of course, sir, you are not just a sitting congressman. 192 00:09:38,000 --> 00:09:39,960 Speaker 2: You are also a medical doctor. And it's with that 193 00:09:40,040 --> 00:09:42,160 Speaker 2: in mind that I ask you about this considering. We 194 00:09:42,200 --> 00:09:46,160 Speaker 2: got new figures from the Congressional Budget Office in response 195 00:09:46,200 --> 00:09:48,839 Speaker 2: to a question asked by Democrats about some of the 196 00:09:48,920 --> 00:09:52,280 Speaker 2: various proposals that could be put forward here. They estimated 197 00:09:52,280 --> 00:09:55,080 Speaker 2: the CBO estimated that capping federal spending in states that 198 00:09:55,080 --> 00:09:58,640 Speaker 2: have expanded Medicaid, which hasn't been ruled out by the Speaker, 199 00:09:58,679 --> 00:10:01,760 Speaker 2: would lead to three point thre three million people being 200 00:10:01,800 --> 00:10:04,840 Speaker 2: booted off their coverage. Is that something you would support? 201 00:10:05,480 --> 00:10:08,120 Speaker 9: Well, First of all, Chuck Schumer's being false. He's being 202 00:10:08,200 --> 00:10:12,200 Speaker 9: absolutely wrong in what he's stating. I can give you, 203 00:10:12,240 --> 00:10:15,360 Speaker 9: I'm a practicing physician. I can give you many examples 204 00:10:15,440 --> 00:10:17,880 Speaker 9: of waste and fraud that's going on in the medicaid system. 205 00:10:17,960 --> 00:10:20,280 Speaker 9: So he doesn't know what he's talking about. Second of all, 206 00:10:20,360 --> 00:10:22,520 Speaker 9: you know, Republicans are destined and this is what our 207 00:10:22,559 --> 00:10:25,920 Speaker 9: plan is still to raise medicaid probably by about close 208 00:10:25,960 --> 00:10:28,760 Speaker 9: to twenty five percent over the next decade. We have 209 00:10:28,840 --> 00:10:30,959 Speaker 9: to get to a system. And if you're going to 210 00:10:31,000 --> 00:10:33,920 Speaker 9: pick one word for this administration, it's called accountability. And 211 00:10:34,000 --> 00:10:37,040 Speaker 9: any business person, anybody's looking at this program understands you 212 00:10:37,080 --> 00:10:39,280 Speaker 9: can't run a business and you can't run a government 213 00:10:39,480 --> 00:10:43,040 Speaker 9: without accountability. This Medicaid system has been a system that 214 00:10:43,080 --> 00:10:48,120 Speaker 9: has been abused, used, fixed, and taken advantage of in 215 00:10:48,160 --> 00:10:50,560 Speaker 9: so many different quarters. And it is okay, It is 216 00:10:50,679 --> 00:10:53,320 Speaker 9: absolutely the right thing to do to look at this 217 00:10:53,360 --> 00:10:55,319 Speaker 9: system and make sure that it works for the people 218 00:10:55,360 --> 00:10:58,160 Speaker 9: that is intended to work for those who are eligible 219 00:10:58,160 --> 00:11:01,080 Speaker 9: for Medicaid. So, Chuck Schumer, you know, shouting out those 220 00:11:01,120 --> 00:11:04,640 Speaker 9: nonsense lies is really not helping the situation. Good lord, 221 00:11:04,679 --> 00:11:06,720 Speaker 9: I'm a bit a physician for thirty five years and 222 00:11:06,760 --> 00:11:09,640 Speaker 9: I've taken care of really the most desperate of individuals. 223 00:11:09,640 --> 00:11:11,680 Speaker 9: The last thing I want to do is not take 224 00:11:11,720 --> 00:11:14,240 Speaker 9: care of individuals, but we have to be able to 225 00:11:14,320 --> 00:11:16,520 Speaker 9: pay for it at the bottom at the end of 226 00:11:16,520 --> 00:11:16,840 Speaker 9: the day. 227 00:11:18,600 --> 00:11:20,680 Speaker 2: Well, and so to kind of come back to my 228 00:11:20,720 --> 00:11:23,800 Speaker 2: original question, Congressman, if there are indeed millions of people 229 00:11:23,800 --> 00:11:27,000 Speaker 2: who are booted from Medicaid rules as a result of 230 00:11:27,040 --> 00:11:29,800 Speaker 2: this legislation, is that an acceptable outcome? 231 00:11:30,480 --> 00:11:33,640 Speaker 9: So if you look at what's happened with the expansion population, 232 00:11:33,800 --> 00:11:37,160 Speaker 9: we had people that left being insured by companies to 233 00:11:37,240 --> 00:11:39,560 Speaker 9: go be insured by the federal government. If it means 234 00:11:39,600 --> 00:11:42,719 Speaker 9: getting them back on insurance by companies and getting them 235 00:11:42,760 --> 00:11:45,440 Speaker 9: off the federal doll that's not losing health care, that's 236 00:11:45,480 --> 00:11:48,160 Speaker 9: taking it off the federal books. But in as far 237 00:11:48,200 --> 00:11:50,720 Speaker 9: as people being kicked off healthcare, et cetera, et cetera, 238 00:11:50,960 --> 00:11:53,920 Speaker 9: those are scare tactics. We're literally trying to save a 239 00:11:54,000 --> 00:11:57,000 Speaker 9: program for those who are eligible for it while trying 240 00:11:57,000 --> 00:12:01,520 Speaker 9: to take the benefits truly who don't deserve them. 241 00:12:01,600 --> 00:12:05,120 Speaker 2: All right, Congressman, we appreciate your time as always. Congressman 242 00:12:05,120 --> 00:12:08,000 Speaker 2: and doctor Greg Murphy of North Carolina joining us here 243 00:12:08,040 --> 00:12:10,559 Speaker 2: on Balance of Power on Bloomberg TV and radio. 244 00:12:12,679 --> 00:12:16,160 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 245 00:12:16,200 --> 00:12:19,280 Speaker 1: us live weekdays at noon and five pm Eastern on 246 00:12:19,400 --> 00:12:22,640 Speaker 1: Apple Cocklay and Android Auto with the Bloomberg Business app. 247 00:12:22,679 --> 00:12:25,679 Speaker 1: You can also listen live on Amazon Alexa from our 248 00:12:25,720 --> 00:12:30,240 Speaker 1: flagship New York station. Just say Alexa Play Bloomberg eleven thirty. 249 00:12:31,720 --> 00:12:35,120 Speaker 2: We are live in Washington paying attention to the reconciliation 250 00:12:35,200 --> 00:12:38,640 Speaker 2: debate on Capitol Hill at federal reserve rate decision that 251 00:12:38,720 --> 00:12:41,120 Speaker 2: is coming just over forty minutes from now. Of course 252 00:12:41,160 --> 00:12:43,440 Speaker 2: expected to be no change in rates, but also what 253 00:12:43,520 --> 00:12:46,840 Speaker 2: is happening in geopolitics after we have seen some serious 254 00:12:46,920 --> 00:12:51,560 Speaker 2: escalation between nuclear powers India and Pakistan in recent days. 255 00:12:51,559 --> 00:12:54,199 Speaker 2: Of course, in the aftermath of an attack on Kashmir 256 00:12:54,679 --> 00:12:58,920 Speaker 2: back in April, India then striking into Palestine or excuse me, 257 00:12:58,960 --> 00:13:02,920 Speaker 2: Pakistan yesterday saying that it was only targeting non civilian targets. 258 00:13:02,960 --> 00:13:06,160 Speaker 2: Pakistan disputing that in Pakistan's premiere actually in fact, just 259 00:13:06,200 --> 00:13:08,720 Speaker 2: within the last thirty minutes or so, has said India 260 00:13:08,800 --> 00:13:12,440 Speaker 2: must face the consequences of those stripes. So we want 261 00:13:12,440 --> 00:13:14,320 Speaker 2: to get the latest on this situation and turn to 262 00:13:14,320 --> 00:13:17,199 Speaker 2: Courtney McBride, Bloomberg National Security reporter, who is here with 263 00:13:17,240 --> 00:13:18,760 Speaker 2: me in our Washington, d C. 264 00:13:18,960 --> 00:13:19,880 Speaker 8: Studio. So Courtney. 265 00:13:19,880 --> 00:13:23,960 Speaker 2: Obviously, the tensions between Israel and India and Pakistan nothing 266 00:13:24,000 --> 00:13:26,640 Speaker 2: necessarily new here, but we haven't seen this kind of 267 00:13:27,200 --> 00:13:29,520 Speaker 2: military activity and arguably over. 268 00:13:29,400 --> 00:13:31,839 Speaker 8: Twenty five years. Is this likely to escalate further? 269 00:13:32,480 --> 00:13:36,800 Speaker 10: Well, it's really anyone's guest. There's certainly some eescuatory rhetoric 270 00:13:36,920 --> 00:13:39,880 Speaker 10: coming from both sides, but it really remains to be seen. 271 00:13:39,880 --> 00:13:43,760 Speaker 10: Pakistan has vowed to retaliate and a time, place, and 272 00:13:43,800 --> 00:13:47,920 Speaker 10: manner of its choosing. But you know, we have been 273 00:13:47,960 --> 00:13:52,440 Speaker 10: here before. In twenty nineteen, they came pretty close, it 274 00:13:52,480 --> 00:13:55,960 Speaker 10: seemed to all out war. There was also a shootdown, 275 00:13:56,000 --> 00:13:59,800 Speaker 10: a capturing of an Indian pilot by Pakistan. Ultimately, they 276 00:13:59,800 --> 00:14:02,880 Speaker 10: did step back from the brink, and that's certainly the 277 00:14:02,960 --> 00:14:04,640 Speaker 10: hope this time as well. 278 00:14:04,920 --> 00:14:07,400 Speaker 2: What role does the US play in trying to pull 279 00:14:07,440 --> 00:14:10,760 Speaker 2: everyone back from the brink here? Do they have any 280 00:14:10,840 --> 00:14:12,520 Speaker 2: role to play in this particular instance. 281 00:14:12,600 --> 00:14:16,520 Speaker 10: Well, certainly the US has relationships with both countries. Secretary 282 00:14:16,559 --> 00:14:19,560 Speaker 10: of State Marco Rubio, in his capacity as Acting National 283 00:14:19,560 --> 00:14:23,280 Speaker 10: Security Advisor, did speak with both of his counterparts in 284 00:14:23,360 --> 00:14:27,360 Speaker 10: that acting role and urge them to urge Indian and 285 00:14:27,400 --> 00:14:31,320 Speaker 10: Pakistan to talk directly and to work to diffuse the situation. 286 00:14:31,880 --> 00:14:35,080 Speaker 2: Yeah, now National Security Advisor and Secretary of State Mark Rubio, 287 00:14:35,120 --> 00:14:38,200 Speaker 2: in addition to everything else he currently has to juggle. 288 00:14:38,240 --> 00:14:40,080 Speaker 2: This also comes Courtney after j d. 289 00:14:40,240 --> 00:14:41,040 Speaker 8: Vance just spent. 290 00:14:40,920 --> 00:14:44,760 Speaker 2: Several days in India. His visit was primarily focused on 291 00:14:45,160 --> 00:14:47,000 Speaker 2: trade and trying to reach a trade deal. But it 292 00:14:47,040 --> 00:14:50,400 Speaker 2: did happen in the aftermath of this attack back in April, 293 00:14:50,400 --> 00:14:54,760 Speaker 2: that of course originated this current bout of tensions. Do 294 00:14:54,760 --> 00:14:57,120 Speaker 2: we have a sense of what the Vice President and 295 00:14:57,200 --> 00:14:59,520 Speaker 2: Mody talked about when it comes to Pakistan and how 296 00:14:59,520 --> 00:15:01,280 Speaker 2: it might be the way in which this is all 297 00:15:01,280 --> 00:15:02,000 Speaker 2: playing out. 298 00:15:02,120 --> 00:15:05,160 Speaker 10: I mean, our understanding. You know, obviously, any any bilateral 299 00:15:05,240 --> 00:15:08,520 Speaker 10: visit and conversation has a variety of components, but that, 300 00:15:08,600 --> 00:15:10,840 Speaker 10: as you said, that visit was much more focused on 301 00:15:10,920 --> 00:15:14,400 Speaker 10: the economic relationship between the two countries. You know, we 302 00:15:14,440 --> 00:15:16,880 Speaker 10: do have some reporting today on some of the challenges 303 00:15:16,920 --> 00:15:21,040 Speaker 10: to India's rise economically that are posed just by this 304 00:15:21,160 --> 00:15:24,480 Speaker 10: ongoing tension with its neighbor. There's a there's a question 305 00:15:24,520 --> 00:15:29,080 Speaker 10: of instability that that certainly can can play a role. 306 00:15:29,240 --> 00:15:33,280 Speaker 2: Well, especially considering these are nuclear armed countries that we're 307 00:15:33,320 --> 00:15:35,800 Speaker 2: talking about. No one anticipates, Courtney, that this would ever 308 00:15:35,920 --> 00:15:38,200 Speaker 2: escalate to a level where the use of those weapons 309 00:15:38,200 --> 00:15:39,720 Speaker 2: are actually in question, right. 310 00:15:39,680 --> 00:15:43,400 Speaker 10: Correct, But you know that that is an added complication 311 00:15:43,680 --> 00:15:47,160 Speaker 10: and something that has to be taken into consideration anytime. Uh, 312 00:15:47,280 --> 00:15:49,960 Speaker 10: These these two neighbors are at odds. 313 00:15:49,680 --> 00:15:52,000 Speaker 2: All right, Courtney McBride, you covers national security for US 314 00:15:52,000 --> 00:15:52,800 Speaker 2: here at Bloomberg. 315 00:15:52,840 --> 00:15:54,520 Speaker 8: Thank you so much for joining me. 316 00:15:54,960 --> 00:15:57,400 Speaker 2: As always, again, we're juggling a lot of stories here 317 00:15:57,440 --> 00:16:00,400 Speaker 2: on balance of power today, from what's happening abroad, how 318 00:16:00,440 --> 00:16:02,520 Speaker 2: the US is playing a role, to what's happening here 319 00:16:03,040 --> 00:16:06,760 Speaker 2: at home, on conversations on Capitol Hill, also conversations with 320 00:16:06,760 --> 00:16:09,480 Speaker 2: our trading partners about our economic relationships, and all of 321 00:16:09,480 --> 00:16:12,160 Speaker 2: that put factor in ultimately to the health of the 322 00:16:12,240 --> 00:16:15,400 Speaker 2: US economy and what happens going forward with both growth 323 00:16:15,560 --> 00:16:18,520 Speaker 2: and inflation. Having just heard from the Treasury Secretary Scott 324 00:16:18,560 --> 00:16:21,600 Speaker 2: Besson testifying before the House Financial Services Committee saying that 325 00:16:21,640 --> 00:16:24,320 Speaker 2: the FED should be focusing on both sides of its 326 00:16:24,360 --> 00:16:29,280 Speaker 2: dual mandate prices and its employment goals, the Treasury Secretary 327 00:16:29,320 --> 00:16:32,680 Speaker 2: saying the two are inexorably linked, and of course that's 328 00:16:32,720 --> 00:16:35,360 Speaker 2: what the FED has to consider as it gets ready 329 00:16:35,560 --> 00:16:37,840 Speaker 2: to send this rate decision down about thirty eight minutes 330 00:16:37,880 --> 00:16:40,080 Speaker 2: from now. So for more on this, we turn to 331 00:16:40,160 --> 00:16:42,640 Speaker 2: Liz Pancotti joining in here on Bloomberg TV and Radio. 332 00:16:42,680 --> 00:16:47,920 Speaker 2: She's managing director of policy and Advocacy at the Groundwork Collaborative. Liz, 333 00:16:47,960 --> 00:16:51,520 Speaker 2: Welcome back to Bloomberg as we consider not just the 334 00:16:51,560 --> 00:16:53,760 Speaker 2: decision itself, because I think we know that's not going 335 00:16:53,760 --> 00:16:55,320 Speaker 2: to be where the news is if they don't do 336 00:16:55,360 --> 00:16:58,240 Speaker 2: anything with rates as expected, but the press conference we're 337 00:16:58,240 --> 00:17:02,040 Speaker 2: going to get the chairman shortly thereafter. How hard is 338 00:17:02,080 --> 00:17:04,880 Speaker 2: this line going to be to walk for Chairman Powell 339 00:17:04,920 --> 00:17:07,359 Speaker 2: who is under pressure from the President to cut rates 340 00:17:07,359 --> 00:17:09,280 Speaker 2: and have to explain to the journalists who are going 341 00:17:09,280 --> 00:17:11,840 Speaker 2: to question him and to the American people why they 342 00:17:11,880 --> 00:17:14,240 Speaker 2: are or are not ready to think about doing that yet. 343 00:17:15,400 --> 00:17:16,439 Speaker 6: I think j. 344 00:17:16,680 --> 00:17:21,920 Speaker 4: Powell has become somewhat of a tightrope walker acrobat over 345 00:17:21,960 --> 00:17:25,359 Speaker 4: the last really few years, but particularly in the last 346 00:17:25,359 --> 00:17:29,280 Speaker 4: few months, and so I suspect we'll see him show. 347 00:17:29,520 --> 00:17:30,920 Speaker 6: Those same attributes. 348 00:17:31,200 --> 00:17:33,360 Speaker 4: I think what's really going to be notable in this 349 00:17:33,720 --> 00:17:40,080 Speaker 4: week's FOMC kind of sins making is that last FOMC meeting, 350 00:17:40,160 --> 00:17:43,199 Speaker 4: we saw them really just go up right to the 351 00:17:43,240 --> 00:17:49,600 Speaker 4: line of hinting at stagflation, of slow growth, increasing unemployment, 352 00:17:49,800 --> 00:17:54,640 Speaker 4: and increasing prices, and nothing since six weeks ago has 353 00:17:54,680 --> 00:17:59,439 Speaker 4: gotten really better. We've gotten new data out showing really 354 00:17:59,480 --> 00:18:03,000 Speaker 4: slow growth. We've gotten a jobs report that was a 355 00:18:03,040 --> 00:18:05,359 Speaker 4: little bit hard to make sense of, but certainly we 356 00:18:05,440 --> 00:18:08,320 Speaker 4: are seeing weakening in the labor market, and we got 357 00:18:08,359 --> 00:18:12,280 Speaker 4: an inflation print that still shows extremely sticky prices. And 358 00:18:12,359 --> 00:18:16,159 Speaker 4: combined that with the kind of policy outlook with a 359 00:18:16,320 --> 00:18:19,399 Speaker 4: trade war, really, you know, many trade wars all at 360 00:18:19,400 --> 00:18:23,000 Speaker 4: the same time threatening both the labor market and prices 361 00:18:23,600 --> 00:18:26,760 Speaker 4: and ultimately growth, I think we will see the Fed 362 00:18:26,880 --> 00:18:31,639 Speaker 4: sort of hint even more at stagflation this afternoon. 363 00:18:33,359 --> 00:18:36,120 Speaker 2: Well, if the hint is going to be stagflation, knowing 364 00:18:36,160 --> 00:18:39,520 Speaker 2: that in theory monetary policy would step in if there 365 00:18:39,520 --> 00:18:43,399 Speaker 2: were signs of an outright recession, Liz, when do you 366 00:18:43,480 --> 00:18:46,320 Speaker 2: expect those signs to materialize? And knowing that the Fed 367 00:18:46,400 --> 00:18:48,720 Speaker 2: wants to wait to have hard data in hand, isn't 368 00:18:48,760 --> 00:18:51,760 Speaker 2: just looking at the soft data? Can they actually act 369 00:18:51,800 --> 00:18:54,800 Speaker 2: in a timely enough manner to avert a recession entirely 370 00:18:55,400 --> 00:18:57,680 Speaker 2: in its entirety, or can they only act to bring 371 00:18:57,760 --> 00:18:59,320 Speaker 2: us out of one if it occurs. 372 00:19:00,400 --> 00:19:03,040 Speaker 4: I think the question is actually what can their actions 373 00:19:03,119 --> 00:19:06,080 Speaker 4: do to avoid a recession at all? If you do 374 00:19:06,240 --> 00:19:10,640 Speaker 4: have economic conditions where prices are increasing, growth is slowing, 375 00:19:11,200 --> 00:19:14,679 Speaker 4: and unemployment is rising, the FED has really one blunt 376 00:19:14,720 --> 00:19:18,000 Speaker 4: instrument to be able to change the macro economic picture. 377 00:19:18,560 --> 00:19:21,359 Speaker 4: So it feels a little bit like we have a 378 00:19:21,400 --> 00:19:28,080 Speaker 4: Phillips screw and a flathead screwdriver with this conundrum. So 379 00:19:28,160 --> 00:19:30,600 Speaker 4: I think the question is not necessarily when will the 380 00:19:30,640 --> 00:19:34,119 Speaker 4: FED start to act? But really, if the Fed acts, 381 00:19:34,119 --> 00:19:36,800 Speaker 4: will it do anything to actually soften the blow of 382 00:19:36,840 --> 00:19:41,639 Speaker 4: this economic calamity that the President has really created on 383 00:19:41,720 --> 00:19:42,120 Speaker 4: his own. 384 00:19:44,359 --> 00:19:48,040 Speaker 2: Well, when we consider the president's own words about what 385 00:19:48,080 --> 00:19:50,920 Speaker 2: could happen economically, he seems to be talking a lot, 386 00:19:50,960 --> 00:19:54,200 Speaker 2: Liz about what will happen through the lens of children's dolls, 387 00:19:54,240 --> 00:19:56,480 Speaker 2: the availability of the weather kids will be able to 388 00:19:56,560 --> 00:19:59,639 Speaker 2: get as many, and how much they will cost. But 389 00:19:59,680 --> 00:20:02,320 Speaker 2: I do wonder if it's not dolls where you expect 390 00:20:02,359 --> 00:20:06,000 Speaker 2: within the economy, these shortages and potentially either empty shelves 391 00:20:06,080 --> 00:20:08,680 Speaker 2: or higher prices for items that are shelved, will start 392 00:20:08,720 --> 00:20:11,200 Speaker 2: showing up in a more material way. How close are 393 00:20:11,200 --> 00:20:14,040 Speaker 2: we to that moment considering what we're seeing in cargo 394 00:20:14,119 --> 00:20:15,560 Speaker 2: volumes coming over from China. 395 00:20:16,600 --> 00:20:18,359 Speaker 4: Yeah, I mean we at the Port of La we 396 00:20:18,400 --> 00:20:21,280 Speaker 4: are now at a fifty percent reduction year over year. 397 00:20:21,480 --> 00:20:23,840 Speaker 4: Just last week, Jean Soroka, the head of the La Port, 398 00:20:23,920 --> 00:20:26,760 Speaker 4: was saying thirty five percent. So the picture is grim. 399 00:20:26,880 --> 00:20:30,960 Speaker 4: JP Morgan is expecting seventy to eighty percent declines and 400 00:20:31,000 --> 00:20:35,520 Speaker 4: shipments from China. You know, I think the President was 401 00:20:35,640 --> 00:20:37,560 Speaker 4: kind of making an offhand comment when he said that 402 00:20:37,600 --> 00:20:39,840 Speaker 4: the children might have two dolls instead of thirty, And 403 00:20:39,840 --> 00:20:41,760 Speaker 4: what he might want to turn his attention to is, 404 00:20:42,040 --> 00:20:43,679 Speaker 4: you know, the doll makers have said all of the 405 00:20:43,720 --> 00:20:46,240 Speaker 4: hair for those dolls comes from China, and so it's 406 00:20:46,280 --> 00:20:47,440 Speaker 4: not how many dolls. 407 00:20:47,240 --> 00:20:50,160 Speaker 6: They'll have, but if they'll be bald. But I think, 408 00:20:50,200 --> 00:20:52,600 Speaker 6: in a more serious note. 409 00:20:51,960 --> 00:20:54,800 Speaker 4: You know, ninety eight percent of car seats, ninety seven 410 00:20:54,840 --> 00:20:58,480 Speaker 4: percent of strollers, ninety percent of First aid kits all 411 00:20:58,520 --> 00:20:59,320 Speaker 4: come from China. 412 00:20:59,400 --> 00:21:02,199 Speaker 6: These are as that parents cannot go without. 413 00:21:02,440 --> 00:21:04,239 Speaker 4: And as we head into the summer season, more than 414 00:21:04,280 --> 00:21:07,919 Speaker 4: ninety percent of charcoal, grills and fireworks come from China, 415 00:21:08,359 --> 00:21:10,600 Speaker 4: as these businesses kind of you know, we saw in 416 00:21:10,640 --> 00:21:13,800 Speaker 4: the trade and balance data earlier today that there was 417 00:21:13,840 --> 00:21:17,320 Speaker 4: a massive spike in imports kind of leading up to 418 00:21:17,400 --> 00:21:21,400 Speaker 4: Liberation Day. These businesses are rapidly spending through their inventories 419 00:21:21,440 --> 00:21:23,359 Speaker 4: so that they don't have to pay the tariff on 420 00:21:23,560 --> 00:21:28,199 Speaker 4: new shipments. Eventually they will run out of those inventories, 421 00:21:28,280 --> 00:21:33,280 Speaker 4: and families across the country could see essentials not on 422 00:21:33,400 --> 00:21:36,240 Speaker 4: shelf for them to be able to purchase pretty soon. Here, 423 00:21:36,440 --> 00:21:40,639 Speaker 4: I'd say for most businesses, they typically have between two 424 00:21:40,680 --> 00:21:44,320 Speaker 4: and four months worth of stock supplied. Maybe some larger 425 00:21:44,359 --> 00:21:46,879 Speaker 4: businesses were able to stretch that to about six, but 426 00:21:47,240 --> 00:21:51,400 Speaker 4: there's only so much stockpiling you can do well. 427 00:21:51,440 --> 00:21:54,119 Speaker 2: And as the FED has said repeatedly, and as you 428 00:21:54,160 --> 00:21:56,520 Speaker 2: were alluding to earlier, Liz, there's not much the FED 429 00:21:56,560 --> 00:22:00,359 Speaker 2: can do to address supply shortages. Their ability to impact 430 00:22:00,480 --> 00:22:03,000 Speaker 2: the supply and demand dynamics is focused solely on the 431 00:22:03,040 --> 00:22:05,240 Speaker 2: demand side. And I wonder, as we consider the interest 432 00:22:05,280 --> 00:22:09,400 Speaker 2: rate mechanism and its abilities to influence demand, if actually 433 00:22:09,480 --> 00:22:13,000 Speaker 2: what we could see is consumers themselves bulking in the 434 00:22:13,040 --> 00:22:16,400 Speaker 2: face of higher prices, bringing their own demand and consumption 435 00:22:16,640 --> 00:22:20,680 Speaker 2: capacity down and in some sense actually making it easier 436 00:22:20,800 --> 00:22:25,120 Speaker 2: for the Federal Reserve if it's consumers that bring their 437 00:22:25,160 --> 00:22:28,280 Speaker 2: own demand down, making the Fed not necessarily need to 438 00:22:28,320 --> 00:22:29,520 Speaker 2: have tighter policy. 439 00:22:29,560 --> 00:22:30,280 Speaker 8: Does that make sense? 440 00:22:31,160 --> 00:22:32,000 Speaker 6: It's possible. 441 00:22:32,119 --> 00:22:34,239 Speaker 4: I mean, we've seen this a little bit from some 442 00:22:34,280 --> 00:22:38,080 Speaker 4: of the fast food earnings reports out last week. You know, McDonald's, 443 00:22:38,160 --> 00:22:41,120 Speaker 4: Chipotle are all reporting decreases. 444 00:22:41,200 --> 00:22:43,320 Speaker 6: We'll see Disney this week. 445 00:22:43,359 --> 00:22:46,560 Speaker 4: But by and large, I think consumers and businesses are like, 446 00:22:46,600 --> 00:22:49,679 Speaker 4: are really trying to put as many big decisions on 447 00:22:49,840 --> 00:22:52,959 Speaker 4: ice as possible. We don't know what the President will 448 00:22:52,960 --> 00:22:57,240 Speaker 4: announce tomorrow, if it'll be one percent tariffs on China 449 00:22:57,320 --> 00:23:00,960 Speaker 4: or zero percent tariffs tariffs on China. It is really 450 00:23:01,000 --> 00:23:04,720 Speaker 4: hard as a consumer to make a decision about large purchases. 451 00:23:04,760 --> 00:23:07,159 Speaker 4: Do I buy a car now because I expect that 452 00:23:07,400 --> 00:23:09,760 Speaker 4: the prices will only continue to go up and my 453 00:23:09,840 --> 00:23:11,960 Speaker 4: car might be on the verge of breaking down. But 454 00:23:12,040 --> 00:23:15,640 Speaker 4: you had forward announced large increases in their prices. As 455 00:23:15,640 --> 00:23:19,840 Speaker 4: families are planning, you know, vacations for this summer, they're rethinking, 456 00:23:20,200 --> 00:23:22,160 Speaker 4: is now really the right time to spend a couple 457 00:23:22,200 --> 00:23:24,200 Speaker 4: thousand dollars or should we wait it out and see 458 00:23:24,200 --> 00:23:26,399 Speaker 4: what happens with our jobs or with our expenses. 459 00:23:26,720 --> 00:23:28,920 Speaker 6: And his businesses are considering hiring. 460 00:23:28,640 --> 00:23:31,720 Speaker 4: Decisions, they're you know, really thinking about should I add 461 00:23:31,760 --> 00:23:33,840 Speaker 4: a full time employee right now or can I make 462 00:23:33,960 --> 00:23:36,480 Speaker 4: do with the staff I have. So I really think 463 00:23:36,520 --> 00:23:39,119 Speaker 4: what we're going to see is largely an economy on ice. 464 00:23:39,160 --> 00:23:42,760 Speaker 6: And the question is as that ice melts, is the 465 00:23:42,800 --> 00:23:45,160 Speaker 6: economy spoiling or flourishing? 466 00:23:45,960 --> 00:23:47,760 Speaker 4: And I think it really remains to be seen, and 467 00:23:47,880 --> 00:23:53,040 Speaker 4: the President's actions will have a large, a large effect 468 00:23:53,119 --> 00:23:55,560 Speaker 4: on those And it's not totally clear what's coming out 469 00:23:55,600 --> 00:23:56,280 Speaker 4: of this White House. 470 00:23:56,320 --> 00:23:59,120 Speaker 6: You know, the President alleges that there's hundreds of deals 471 00:23:59,160 --> 00:23:59,920 Speaker 6: he could announce. 472 00:24:00,160 --> 00:24:03,879 Speaker 4: He's not announcing any I know Treasury Secretary Besant and 473 00:24:04,080 --> 00:24:07,960 Speaker 4: USTR Jameson Greer traveling to Switzerland this weekend to meet. 474 00:24:07,760 --> 00:24:08,560 Speaker 6: With the Chinese. 475 00:24:08,760 --> 00:24:11,240 Speaker 4: I'm not sure how much we can expect movement there. 476 00:24:11,280 --> 00:24:13,960 Speaker 4: And so I really think it depends on how the 477 00:24:14,000 --> 00:24:17,359 Speaker 4: President keeps course on his erratic trade agenda as to 478 00:24:17,440 --> 00:24:20,080 Speaker 4: what happens with American consumers and businesses. 479 00:24:21,440 --> 00:24:23,280 Speaker 2: All right, Liz, we just have a minute left here. 480 00:24:23,280 --> 00:24:25,240 Speaker 2: But if you had the chance to ask Chairman Powell 481 00:24:25,280 --> 00:24:27,520 Speaker 2: a question at the press conference today, What would he 482 00:24:27,560 --> 00:24:28,239 Speaker 2: need to answer for? 483 00:24:29,240 --> 00:24:31,399 Speaker 4: I think the better question to ask him is about 484 00:24:31,400 --> 00:24:33,879 Speaker 4: his grateful dead fan fan fair. 485 00:24:33,960 --> 00:24:36,640 Speaker 6: But I think what I would what I'd really want 486 00:24:36,720 --> 00:24:37,200 Speaker 6: to know the. 487 00:24:37,200 --> 00:24:43,120 Speaker 4: Answer is, if faced with increasing unemployment and increasing prices, 488 00:24:44,160 --> 00:24:46,840 Speaker 4: what tools are in the bottom of the depths of 489 00:24:46,880 --> 00:24:49,399 Speaker 4: the toolbox of the Fed to make sure that American 490 00:24:49,520 --> 00:24:53,640 Speaker 4: families do not pay the price of this president's erratic 491 00:24:53,680 --> 00:24:54,720 Speaker 4: economic agenda. 492 00:24:55,160 --> 00:24:56,760 Speaker 6: And I'm not sure he has an answer for that. 493 00:24:58,240 --> 00:24:59,720 Speaker 2: All right, Well, we'll see if he gets asked a 494 00:24:59,800 --> 00:25:02,840 Speaker 2: very of that question this afternoon. All the same, Liz, 495 00:25:02,880 --> 00:25:05,280 Speaker 2: thank you so much for joining me. Liz Pancotti is 496 00:25:05,320 --> 00:25:09,240 Speaker 2: managing director of Policy and Advocacy at the Groundwork Collaborative. 497 00:25:14,440 --> 00:25:16,879 Speaker 2: Thanks for listening to the Balance of Power podcast. 498 00:25:17,520 --> 00:25:20,639 Speaker 3: Make sure to subscribe if you haven't already, at Apple, Spotify, 499 00:25:20,720 --> 00:25:23,320 Speaker 3: or wherever you get your podcasts, and you can find 500 00:25:23,359 --> 00:25:27,080 Speaker 3: us live every weekday from Washington, DC at Noontimeeastern at 501 00:25:27,080 --> 00:25:28,320 Speaker 3: Bloomberg dot com.