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Cook Stays at Fed But Trump Wins Power Over Other Agencies · Balance of Power

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  Speaker 2: Thank you for joining us.
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  Speaker 3: I am Joe, Matthew and Washington Kayley Lines is off
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  Speaker 3: today and it has been a very busy one. If
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  Speaker 3: you look at the President's schedule, he's got a lot
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  Speaker 3: going on, not a lot of specifics, but policy meetings
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  Speaker 3: and executive time as they call it. All of them
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  Speaker 3: are closed press. But we've heard from Donald Trump repeatedly
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  Speaker 3: today on social media and mostly since ten am when
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  Speaker 3: the Supreme Court began a series of rulings, many of
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  Speaker 3: which we have been waiting weeks and months for, including
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  Speaker 3: a ruling on Lisa Cook. And the President has been
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  Speaker 3: quick to acknowledge many of these on social media since
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  Speaker 3: the first dropped. First of all, will get to the
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  Speaker 3: headlines and Lisa Cook can keep her job for now.
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  Speaker 3: We did learn that shortly after ten am that does
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  Speaker 3: not mean she will always have it, as the court
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  Speaker 3: also allows some time for this period to expire here
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  Speaker 3: in the investigation into her alleged mortgage fraud that brought
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  Speaker 3: us to this point. Until that cause is determined, though,
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  Speaker 3: she will be able to keep her job. With the
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  Speaker 3: President writing on truth social the Cook lawsuit, having to
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  Speaker 3: do with her suitability in sitting on.
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  Speaker 2: The board of the Federal Reserve was.
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  Speaker 3: Sent back by the Supreme Court on a strictly procedural basis.
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  Speaker 3: He says, we will take appropriate action immediately to make
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  Speaker 3: sure that someone who has committed wrongdoing will not be
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  Speaker 3: making vital decisions concerning the welfare of the United States
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  Speaker 3: of America. And the President writes that while the Court
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  Speaker 3: rules simultaneously that his power to fire top government officials
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  Speaker 3: is in fact being expanded in the eyes of the Court.
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  Speaker 3: A six y three decision overturning a nineteen thirty five
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  Speaker 3: president laying the legal groundwork for what we consider the
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  Speaker 3: modern administrative state. This is the Rebecca Kelly Slaughter case FTC,
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  Speaker 3: allowing the President to fire the FTC member despite a
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  Speaker 3: law saying commissioners can be.
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  Speaker 2: Removed only for cause.
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  Speaker 3: We get to the bottom of all of this now,
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  Speaker 3: ahead of a busy hour with Tyler Kendall, our Washington correspondent,
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  Speaker 3: who has typically posted up at the White House, has
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  Speaker 3: gone to the other end of Pennsylvania Avenue to the
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  Speaker 3: Supreme Court to bring us the latest on all of this.
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  Speaker 3: Tyler walked through these decisions and what this specifically means
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  Speaker 3: for Lisa Cook as the investigation continues.
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  Speaker 4: Well, Joe, these are two very highly consequential decisions, but
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  Speaker 4: neither was necessarily surprising, right. We got these indications during
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  Speaker 4: the oral arguments for both of these cases that they
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  Speaker 4: were probably going to end up this way. In one sense,
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  Speaker 4: a major win for the administration when it comes to
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  Speaker 4: bolstering the president's ability to fire the heads of independent agencies.
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  Speaker 4: It's really considered to be a blockbuster ruling. But then
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  Speaker 4: on the other we saw the Supreme Court move to
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  Speaker 4: establish and ensure the independence of the Central Bank by
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  Speaker 4: allowing FED Governor Lisa Cook to stay in her seat.
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  Speaker 4: Now we've heard from President Trump on both of these cases,
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  Speaker 4: as you mentioned, happy about one, not necessarily about the other.
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  Speaker 4: But I wanted to highlight some of the other people
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  Speaker 4: that we heard from when it comes to Lisa Cook's case,
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  Speaker 4: and that's the Supreme Court Chief Justice John Roberts here,
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  Speaker 4: who joined with Brett Kavanaugh, another conservative justice, with the
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  Speaker 4: other liberal justices. This ruling was five to four, and
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  Speaker 4: he said that essentially they took issue with the process
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  Speaker 4: here that Lisa Cook wasn't given the due process that
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  Speaker 4: she deserved to respond to the allegations against her, saying,
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  Speaker 4: in part, quote, under our president's Cook was entitled to
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  Speaker 4: notice in some opportunity to respond prior to her termination.
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  Speaker 2: Your recall, we all.
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  Speaker 4: Learned about this months ago, where we saw the allegations
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  Speaker 4: posted on true Social and then a few days later
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  Speaker 4: her termination letter posted. But I wanted to bring up
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  Speaker 4: another thread that we've been following really closely here, which
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  Speaker 4: is that the Chief Justice added, quote, monetary policy should
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  Speaker 4: not be subject to political interference. So while the Court
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  Speaker 4: did not decide on whether or not the allegations against
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  Speaker 4: Lisa Cook would rise to the level of her firing,
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  Speaker 4: it is very clear here from this decision, from what
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  Speaker 4: we actually heard in their line of questioning back in
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  Speaker 4: January during the oral arguments, that the Supreme Court was
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  Speaker 4: thinking about what's known as the equities of the case,
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  Speaker 4: what those longer term impacts could be when it comes
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  Speaker 4: to the economy and the Central Banks Independence.
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  Speaker 3: Got it really interesting, Tyler. And it's remarkably quiet over
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  Speaker 3: at the Court. Usually we have a major ruling and
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  Speaker 3: you can hear the protesters behind Tyler. But it just
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  Speaker 3: reminds us of how esoteric these cases are. It's a
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  Speaker 3: big deal for us, a Bloomberg big deal for the markets.
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  Speaker 3: Maybe not a kitchen table issue for Americans. Tomorrow might
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  Speaker 3: be different, though, Tyler. Birthright citizenship. We're going to find
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  Speaker 3: out one way or the other at ten am, says
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  Speaker 3: the Court.
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  Speaker 4: Yep, this is the last day of the term tomorrow
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  Speaker 4: where we're waiting on four very consequential cases, including when
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  Speaker 4: it comes to birthright citizenship. Now, your recall, and I
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  Speaker 4: mentioned this last hour. I was here in this very
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  Speaker 4: spot back in April for those oral arguments because President
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  Speaker 4: Trump was here too. He became the first sitting president
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  Speaker 4: in US history to attend oral arguments in person. That
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  Speaker 4: is how critical this case is to the Trump administration's
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  Speaker 4: immigration agenda. Now, if the signals that we got about
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  Speaker 4: these cases turned out to be true, that could be
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  Speaker 4: true tomorrow. We're also expecting the justices to be highly
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  Speaker 4: wary of the Trump Administration's bid to end automatic birthright citizenship.
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  Speaker 4: They seemed to take some issue with the Trump administration's
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  Speaker 4: arguments here. In fact, the Chief Justice during oral arguments
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  Speaker 4: said that their legal argus was quote quirky, But they're
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  Speaker 4: essentially trying to say that the citizenship clause of the
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  Speaker 4: fourteenth Amendment should not be applied so broadly, Whereas we've
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  Speaker 4: seen the challengers to that executive order at that President
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  Speaker 4: Trump signed on day one say that this is long
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  Speaker 4: standing legal precedent, and it seems the Court may go
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  Speaker 4: that way. You recall the Chief Justice at the time
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  Speaker 4: said that it is a new world, but it is
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  Speaker 4: the same constitution, Joe. It has very wide ranging impacts.
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  Speaker 4: It stands to impact the nearly two hundred and fifty
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  Speaker 4: five thousand children that are born to undocumented immigrants in
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  Speaker 4: this country every year.
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  Speaker 3: It'll be another awfully important ruling tomorrow, and something tells me, Todnter,
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  Speaker 3: we'll be back at the Supreme Court.
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  Speaker 2: Thank you, Tyler Kendall.
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  Speaker 3: Of course, we have the voice of Mick mulvaney and
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  Speaker 3: we're going to be talking later on this hour with
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  Speaker 3: Elizabeth Widruff from the Constitutional Accountability Center to talk about
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  Speaker 3: the legal significance here. We want to talk about the
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  Speaker 3: political significance with a voice that we haven't heard from
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  Speaker 3: in a bit.
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  Speaker 2: Mick Mulvanniy of.
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  Speaker 3: Course, former acting White House Chief of Staff, co founder
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  Speaker 3: Freedom Caucus, former OMB director, former acting CFPB director, class
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  Speaker 3: Seersucker Today, you look great If you can't wear a
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  Speaker 3: series sucker in DC in July, when can you be
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  Speaker 3: one hundred degrees in two days? I think you're smarter
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  Speaker 3: than I am right now. But welcome back. It would
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  Speaker 3: be first, but I'll take it. I don't know if
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  Speaker 3: that's true. The President of the United States, I'm guessing,
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  Speaker 3: is calling a lot of people this morning. He's not happy.
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  Speaker 3: We haven't even mentioned the mail in ballot component. That
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  Speaker 3: was a whole separate ruling as well. With regard to
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  Speaker 3: Lisa Cook though, did the President just find the line
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  Speaker 3: the FED simply different than any other agency. Yeah, And
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  Speaker 3: if I wanted to, I could see both sides of this.
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  Speaker 3: But if I want to take the side of the
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  Speaker 3: court on this one, if you go back historically, and
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  Speaker 3: I've not read the opinion I just got into town, but.
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  Speaker 2: Money suppli has always been different.
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  Speaker 5: Congress always had the right to run the printing presses
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  Speaker 5: that was their job.
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  Speaker 2: It was not an executive authority.
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  Speaker 5: So if if the Court looks at this and says, well,
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  Speaker 5: you know what regulation is one thing, the FDC is another,
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  Speaker 5: my own CFPB is something else.
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  Speaker 2: Those are executive functions.
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  Speaker 5: The monetary policies of the country were always congressional authority.
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  Speaker 5: So maybe that's different, and maybe that was the basis
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  Speaker 5: for this decision. Now I just heard something from your
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  Speaker 5: report it was struck me as completely wrong, which is
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  Speaker 5: that monetary policy should not be subject to political influence.
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  Speaker 3: How about that line? Really, that's from the Chief Justice. Yeah,
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  Speaker 3: that scares the hell out of me.
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  Speaker 5: Why because everything should be response, should be respond to
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  Speaker 5: political pressures in this country.
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  Speaker 2: So who's going to make who's going to make?
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  Speaker 5: Ultimately, who does the Supreme Court think gets to make
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  Speaker 5: Monte pilots in a bunch of people that we don't elect.
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  Speaker 2: That that is really frightening to me.
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  Speaker 5: If it was Congress's right in the beginning out of
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  Speaker 5: the Constitution, there's subject to political pressure, why wouldn't we
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  Speaker 5: still have that.
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  Speaker 2: I don't worry about.
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  Speaker 5: These decisions that say, well, there's certain things that are
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  Speaker 5: just bigger than politics, they're above politics.
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  Speaker 2: We have to make things. Take the know, elected officials
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  Speaker 2: must confirm people.
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  Speaker 5: Therefore, Yeah, but okay, but that's okay, that's fine. There's
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  Speaker 5: there's some political input there. The terms maybe are subject
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  Speaker 5: to political pressure. But look, I dealt with this at
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  Speaker 5: the CFPB. It was created by Elizabeth Warren because she
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  Speaker 5: thought that consumer protection should be above politics. Once you
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  Speaker 5: start going down that road, think about all the things
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  Speaker 5: in our government that really should be above politics and
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  Speaker 5: really should be left to the professionals, left the technocrats.
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  Speaker 2: That frightens me.
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  Speaker 5: So anyway, I think that sentence may come back to
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  Speaker 5: haunt conservatives one hundred years from now. I still think
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  Speaker 5: this is probably the right decision.
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  Speaker 3: If in fact, it is found that Lisa Cook did
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  Speaker 3: commit mortgage fraud, does that line then keep her from
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  Speaker 3: being fired that day?
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  Speaker 2: I don't.
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  Speaker 5: I don't know how. I don't know how it can
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  Speaker 5: be If this is not. If this is different and
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  Speaker 5: it's based on the fact that it used to be
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  Speaker 5: originally in Congress, that again, now it's apparently above politics.
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  Speaker 5: That what would be the justification for letting a president
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  Speaker 5: fire somebody? Why wouldn't an impeachment be the ordinary process
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  Speaker 5: to remove a person for those types of causes fascinating. Again,
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  Speaker 5: I think it's the right decision, but apparently, don't get
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  Speaker 5: me wrong, if it comes I'm not like some people
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  Speaker 5: in my in my in my party.
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  Speaker 2: I recognize the fact I don't know everything about everything.
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  Speaker 5: So fine, I don't lecture the pope on theology and right,
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  Speaker 5: I'm not going to lecture John Robbers on constitutionality.
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  Speaker 2: Okay.
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  Speaker 3: This other ruling, though, says you can fire pretty much
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  Speaker 3: anybody else and that's the right decision.
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  Speaker 5: Yeah, Humphreys executor was was was wrong when it was
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  Speaker 5: written one hundred years ago, L. Eighty five whatever it was.
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  Speaker 5: And I think it was Roberts who actually said that,
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  Speaker 5: you know, have you long believed that all the law
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  Speaker 5: knocking around your head? This whole, this whole idea that
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  Speaker 5: there is this again, this group, this part of government,
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  Speaker 5: in the executive branch, especially that's not subject to the president,
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  Speaker 5: makes no sense. If we want the president to be
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  Speaker 5: the chief executive officer of the country, and that's the position,
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  Speaker 5: they should be able to hire, fire, do all the
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  Speaker 5: things that executives are supposed to do. They shouldn't be
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  Speaker 5: these independent agencies. I don't have my pocket constitution because
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  Speaker 5: I'm not that geeky anymore.
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  Speaker 2: It used to be.
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  Speaker 5: I would challenge anybody disa to show me where the
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  Speaker 5: where the branch a government called independent agencies.
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  Speaker 2: It's not, we don't. We don't have those.
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  Speaker 3: So is there like a Monday night massacre on the
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  Speaker 3: offing then, or just aren't that many people he wants
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  Speaker 3: to fire anyway? Yeah, Look, he's largely created the government
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  Speaker 3: he wants.
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  Speaker 5: Let's step back and take a more holistic view of this.
• 11:01
  Speaker 5: I were about the rise of populism. I really do
• 11:03
  Speaker 5: above the left and the right. One of the reasons
• 11:05
  Speaker 5: populism exists is that people keep voting and they don't
• 11:08
  Speaker 5: see any difference. They vote left left wins. We don't
• 11:11
  Speaker 5: really go that far left. They vote right right wins.
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  Speaker 5: We don't go over that far right. The government has
• 11:15
  Speaker 5: not been responsive to the voters, in large part because
• 11:18
  Speaker 5: of the structure of the government. I have no difficulty
• 11:21
  Speaker 5: with elections having consequences. One of the reasons I don't
• 11:23
  Speaker 5: like the Phibus rule in the Senate, but that's another story.
• 11:25
  Speaker 5: Presidents should be able to hire and fire people in
• 11:28
  Speaker 5: their executive branch in order to put their policies into place.
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  Speaker 5: That's what they got elected to do. You might not
• 11:34
  Speaker 5: like it, especially if you're a Democrat. Now you don't
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  Speaker 5: like it because it's Donald Trump. I certainly wouldn't have
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  Speaker 5: liked it from a policy standpoint under Biden. But it's
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  Speaker 5: the right way to run the country. So if there's
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  Speaker 5: a house cleaning, yeah, probably so. But if you put
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  Speaker 5: people in that want to put the Trump policies in place,
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  Speaker 5: and you know, I've talked long times about the deep
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  Speaker 5: state and how real it is, maybe this is.
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  Speaker 2: Sort of a light at the end of the tunnel.
• 11:56
  Speaker 3: The mail in balance ruling is significant as long as
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  Speaker 3: it's postmarked by election. You know, it can be counted
• 12:03
  Speaker 3: after election days when when the election is complete. I
• 12:06
  Speaker 3: think we're the words that were used here. What does
• 12:09
  Speaker 3: this mean for the Save America Act or some of
• 12:11
  Speaker 3: the other attempts the presidents made to cut down on mail.
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  Speaker 5: And Yeah, again, I think it's probably the right decision
• 12:16
  Speaker 5: because it traditionally we've allowed states to run their own
• 12:19
  Speaker 5: elections in this country. Don't like it, don't like the
• 12:21
  Speaker 5: fact it takes California seven and a half weeks to
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  Speaker 5: count or something absurd like that. But unless you have
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  Speaker 5: a federal law sitting on top of it, then I
• 12:30
  Speaker 5: think it's probably the right decision. I still don't see
• 12:33
  Speaker 5: a pathway for success for the Save Act. I don't
• 12:37
  Speaker 5: really understand why. I know there's some complaints about it
• 12:40
  Speaker 5: in terms of I have my passport, you might have yours,
• 12:42
  Speaker 5: A lot of folks don't. How do you really prove citizenship,
• 12:46
  Speaker 5: especially on the day of an election.
• 12:47
  Speaker 2: Those types of things I discourage.
• 12:49
  Speaker 5: I don't like things that discourage people from voting once
• 12:52
  Speaker 5: and voting legally.
• 12:55
  Speaker 2: I but.
• 12:57
  Speaker 5: So I like I like the I'd like the bill generally.
• 12:59
  Speaker 5: But but I talked to the Hill says the votes
• 13:01
  Speaker 5: simply aren't there for a variety of reasons. And that
• 13:03
  Speaker 5: doesn't change if it's in budget reconciliation, if it's tied
• 13:06
  Speaker 5: to funding, if it's signed to anything. I just I
• 13:08
  Speaker 5: just don't see the pathway to success.
• 13:09
  Speaker 3: Well, you must be chuckling or I don't know what
• 13:11
  Speaker 3: you're doing looking at what's say, you've got the floor
• 13:13
  Speaker 3: held hostage by Annapauline Luna. Yeah, Freedom Caucus. Chip Roy
• 13:17
  Speaker 3: is not going to behave in this Rules committee meeting today.
• 13:20
  Speaker 3: Are we done as the store closed? Indefinitely?
• 13:22
  Speaker 2: Probably?
• 13:23
  Speaker 3: But it was anyway, it's Joe, It's come on as
• 13:24
  Speaker 3: I was fortunate, I understand, sure, But okay, there was
• 13:27
  Speaker 3: one bill that got out before they locked the doors.
• 13:30
  Speaker 2: What did I means? Well, this housing bill.
• 13:35
  Speaker 5: I don't understand why he didn't sign it in the
• 13:37
  Speaker 5: first place. And again he didn't say he was going
• 13:39
  Speaker 5: to veto it, right, he said he wasn't going to sign.
• 13:41
  Speaker 5: So even if it does nothing for the next on
• 13:42
  Speaker 5: was it eight days? Now it becomes law. Look, there's
• 13:46
  Speaker 5: parts of the bill I don't like. That's the nature
• 13:48
  Speaker 5: of a compromise. I don't like the part the band's
• 13:50
  Speaker 5: corporations from owning houses. I think that's a market distortion.
• 13:53
  Speaker 5: But I also understand the price you have to pay
• 13:55
  Speaker 5: to get a bill done. If I was going to
• 13:57
  Speaker 5: be critical of my good friend Tim Scott, it was
• 13:59
  Speaker 5: the language that he used when he says houses are
• 14:02
  Speaker 5: for people, not for corporations. That's that's populous demagoguere And
• 14:05
  Speaker 5: I really don't like it if you come out and say, look,
• 14:07
  Speaker 5: I don't like this as a policy. I think it
• 14:09
  Speaker 5: distorts the market, but it's what we needed to do
• 14:12
  Speaker 5: in order to get this larger package pass. That's the
• 14:15
  Speaker 5: nature of compromise in Washington. That is a mature way
• 14:17
  Speaker 5: to look things that it doesn't sort of muddy the
• 14:20
  Speaker 5: waters about about.
• 14:21
  Speaker 2: What the role of corporations are. I worry about blaming
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  Speaker 2: corporations for ours.
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  Speaker 3: You know, a lot of our analysis here has found
• 14:27
  Speaker 3: that this institutional ownership is really I mean, were really
• 14:30
  Speaker 3: nibbling around the age it is nothing, but it doesn't
• 14:32
  Speaker 3: really exist.
• 14:32
  Speaker 2: It is, And that's why it would.
• 14:33
  Speaker 5: Be completely defensible to come out and say, look, it's
• 14:36
  Speaker 5: not going to be that big a deal. It's not
• 14:37
  Speaker 5: gonna but it was the price we had to pay
• 14:40
  Speaker 5: to get all these other good policies. People understand compromise.
• 14:43
  Speaker 5: We do in our own families every single day. So
• 14:47
  Speaker 5: but look, it's it's a decent bill. There's like forty
• 14:49
  Speaker 5: five different provisions that some of it could actually help
• 14:52
  Speaker 5: a little bit. I don't think it's going to help
• 14:53
  Speaker 5: much because it doesn't get to the real root cause,
• 14:56
  Speaker 5: which is that towns and council towns and counties don't
• 14:58
  Speaker 5: approve enough housing.
• 14:59
  Speaker 2: But it's a good bill. I don't know why the
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  Speaker 2: President decided to sort of fight on this hill, but.
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  Speaker 3: They had Stad Hall all dressed ceremony. My god, last
• 15:11
  Speaker 3: one high minded question. Yeah, the other one's low mind.
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  Speaker 3: You mentioned, well, all this has been so far right.
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  Speaker 3: You mentioned some of the bigger political themes that are
• 15:19
  Speaker 3: happening here. And you are on the ground floor for
• 15:21
  Speaker 3: the tea party. You see what's happening, and the President
• 15:23
  Speaker 3: calls them communists, socialist Democrats. We've got another contest in
• 15:28
  Speaker 3: Colorado tomorrow. The day really starting to bring this outside
• 15:30
  Speaker 3: of Manhattan. If you look at Maine, if you look
• 15:32
  Speaker 3: at Michigan, Colorado, and California, are we witnessing the birth
• 15:37
  Speaker 3: of a new type of tea party on the left.
• 15:40
  Speaker 5: That's exactly what this is. Yeah, And you and I
• 15:42
  Speaker 5: may have talked about this. They're about the Democrats about
• 15:44
  Speaker 5: ten years behind us on this a large part because
• 15:46
  Speaker 5: of the tremendous leadership that Nancy Pelosi and before along
• 15:50
  Speaker 5: with her, Barack Obama exercised over their parties. They had
• 15:54
  Speaker 5: a lot more control over their party, and just naturally
• 15:56
  Speaker 5: Democrats are better team players than Republicans, were a little.
• 15:59
  Speaker 2: Bit more individualistic on our side of the aisle.
• 16:02
  Speaker 5: So we were a little bit ahead of them, and
• 16:04
  Speaker 5: sort of this freedom Caucus evolution. They're just catching up.
• 16:08
  Speaker 5: Their populist wing is now catching up. They're getting ready
• 16:11
  Speaker 5: to go through their Donald Trump primary. Wait and see
• 16:13
  Speaker 5: who runs in twenty twenty eight. Who's there, Donald Trump?
• 16:16
  Speaker 5: Because I think you're going to see it. Yeah, But
• 16:18
  Speaker 5: the parties continue to fracture. It's probably not surprising where
• 16:22
  Speaker 5: a country of three hundred and fifty million people with
• 16:23
  Speaker 5: only two parties.
• 16:24
  Speaker 2: They were never going to be monolithic in the first place.
• 16:27
  Speaker 5: But if you want to see the way the Democrats going,
• 16:29
  Speaker 5: go back and start studying the Republican Party starting about
• 16:32
  Speaker 5: two thousand and eight, two thousand and nine, and you'll
• 16:34
  Speaker 5: see the same.
• 16:34
  Speaker 2: What is it? History doesn't repeat itself, but it does rhyme. Well,
• 16:37
  Speaker 2: it's rhyming here.
• 16:38
  Speaker 3: It's just a question of whether this in fact continues
• 16:40
  Speaker 3: to snowball around the country or if it's something, as
• 16:42
  Speaker 3: we mentioned, that's limited to downtown Manhattan. Make us great
• 16:46
  Speaker 3: to see you, Welcome back, Happy Seer Sucker Day, a
• 16:48
  Speaker 3: little late, and happy Fourth of July.
• 16:50
  Speaker 2: Every day is a serious dy of America's birthday.
• 16:51
  Speaker 3: It is going to be this week nineties, tomorrow, one hundred,
• 16:54
  Speaker 3: they said, by Thursday, Good Lord, Mick mulvaney was, of
• 16:58
  Speaker 3: course Donald Trump's acting chief of staff and the first term,
• 17:01
  Speaker 3: spent a lot of time on Capitol Hill, help to
• 17:03
  Speaker 3: co found the Freedom Caucus, and great Mith to have
• 17:05
  Speaker 3: you back.
• 17:06
  Speaker 2: We thank you.
• 17:06
  Speaker 3: As we reassemble our political panel to pick up on
• 17:09
  Speaker 3: some of the things that we just talked about with
• 17:10
  Speaker 3: mister mulvaney. Rick Davis is here of Bloomberg Politics contributor,
• 17:14
  Speaker 3: Republican strategist partner at stone Court Capital, and Frederick Kicks,
• 17:18
  Speaker 3: Democratic strategist founder CEO Hicks Evaluation Group. Gentlemen, it's great
• 17:22
  Speaker 3: to have you both with us. What do you think
• 17:24
  Speaker 3: about that, Rick, Some of these elections and we'll talk
• 17:26
  Speaker 3: about it a lot tomorrow with regard to the primary
• 17:29
  Speaker 3: in California start making you wonder if this is in
• 17:32
  Speaker 3: fact a national story not a New York story. Are
• 17:35
  Speaker 3: Democrats recruiting for their own Tea Party or their own
• 17:39
  Speaker 3: Freedom Caucus right now?
• 17:41
  Speaker 6: Well, there's no question there's been an internal fight going
• 17:44
  Speaker 6: on with Democrats, both in the primaries but also on
• 17:46
  Speaker 6: party control. The left has been the insurgent ideology and
• 17:53
  Speaker 6: Nancy Pelosi and Joe Biden and people like that who
• 17:56
  Speaker 6: really represent the center of the Democratic party it off
• 18:00
  Speaker 6: for a long time. I would say Hakeem Jeffreys hasn't
• 18:03
  Speaker 6: been much of a book work against it and has
• 18:07
  Speaker 6: kind of let the caucus do their own thing in
• 18:09
  Speaker 6: the House, which breeds a little.
• 18:11
  Speaker 7: Bit of that.
• 18:11
  Speaker 6: But there's no question there's a bit of a surge
• 18:14
  Speaker 6: to the left. But I would say over the long
• 18:16
  Speaker 6: period of time, the parties that are successful are the
• 18:19
  Speaker 6: ones that migrate back.
• 18:20
  Speaker 8: To the center.
• 18:21
  Speaker 2: Interesting, is that going to be your party? Fred?
• 18:24
  Speaker 3: And do you buy this narrative that there's this socialist
• 18:27
  Speaker 3: movement that is gripping the nation.
• 18:31
  Speaker 7: Well, what's happening right now at Lisa on the Democratic
• 18:33
  Speaker 7: side is that you're seeing a reaction to Donald Trump.
• 18:35
  Speaker 7: The reason why you didn't see this really came putting
• 18:38
  Speaker 7: on twenty and eight through really through twenty sixteen, even
• 18:40
  Speaker 7: though they were you know, there were persons here and
• 18:42
  Speaker 7: there was not because that Barack Obama and Nancy Pelosi
• 18:45
  Speaker 7: were some amazing leaders told this down. But it's because
• 18:48
  Speaker 7: there was a central push and leadership, and the Republican
• 18:51
  Speaker 7: Party at that point had not swung to where it
• 18:53
  Speaker 7: is right now. You have the cheap party out there,
• 18:55
  Speaker 7: but it was considered kind of like an insurgent side
• 18:57
  Speaker 7: piece to the main dish of the Republican Party. But
• 19:02
  Speaker 7: since twenty sixteen, over the last ten years, the Republican
• 19:04
  Speaker 7: Party moved further and further to the right. And in
• 19:06
  Speaker 7: this iteration of Donald Trump's administration is second run. People
• 19:10
  Speaker 7: on the left are seeing in Americans overall are saying that, hey,
• 19:12
  Speaker 7: wait a minute, the things that you said someone couldn't do,
• 19:15
  Speaker 7: you really can do if you want to do it. So,
• 19:17
  Speaker 7: if that's the case, here are our laundry list of works,
• 19:19
  Speaker 7: and we expect and we are going to elect people
• 19:22
  Speaker 7: who will move forward with those things. And so this
• 19:24
  Speaker 7: is a reaction very much so to Donald Trump. Now,
• 19:26
  Speaker 7: if it's here to stay, I'm not quite sure, but
• 19:29
  Speaker 7: I think that this is good and bad for the country.
• 19:32
  Speaker 7: It's good because this is again this is we need
• 19:36
  Speaker 7: checks and ballasties in our country and even within parties.
• 19:39
  Speaker 7: But it's bad because we're seeing on both sides now,
• 19:42
  Speaker 7: so just one side, which is the right, we're starting
• 19:44
  Speaker 7: to see on both sides even more organization and as
• 19:47
  Speaker 7: pulling us apart at the heart of our country. Right
• 19:50
  Speaker 7: as we approach our anniversary of our birthday, in our
• 19:53
  Speaker 7: anniversary of joining fifty of the anniversary of the country.
• 19:56
  Speaker 3: I want to pull you both back to these Supreme
• 19:58
  Speaker 3: Court rulings today and something important that Mix said. He
• 20:01
  Speaker 3: was really talking most about this Lisa Cook ruling. Rick,
• 20:06
  Speaker 3: if you're just joining us, the Supreme Court at last
• 20:08
  Speaker 3: ruled that Lisa Cook will stay on, can stay on
• 20:11
  Speaker 3: the job for now, even as the administration attempts to
• 20:15
  Speaker 3: prove mortgage fraud allegations. It was the line from the
• 20:19
  Speaker 3: Chief Justice Rick. We talked about it in our first hour.
• 20:21
  Speaker 3: Monetary policy should not be subject to political interference. Mick
• 20:26
  Speaker 3: really called that into question and predicted that it would
• 20:29
  Speaker 3: come back to haunt Republicans in years ahead.
• 20:31
  Speaker 2: Do you agree, Yeah, I don't agree.
• 20:34
  Speaker 6: You know, look, we've lost our jobs as a party
• 20:37
  Speaker 6: on fiscal conservatism, and I think that this may have
• 20:41
  Speaker 6: been the biggest gift that John Roberts could have given
• 20:44
  Speaker 6: our party is to reflect back on what we really
• 20:47
  Speaker 6: believe in, which is, you know, a very very conservative
• 20:51
  Speaker 6: fiscal policy, which by the way, is not going to
• 20:55
  Speaker 6: get done by the Treasure Apartment.
• 21:00
  Speaker 7: They handle the fiscal policy.
• 21:02
  Speaker 6: Of America and monetary policy is exclusive right of the
• 21:06
  Speaker 6: Federal Reserve. And that's a way that it was set up,
• 21:09
  Speaker 6: that's the way it's operated. And I think John Marbert's
• 21:12
  Speaker 6: just saved the day by making that point that these
• 21:15
  Speaker 6: things are not things that should be politically dominated. I
• 21:18
  Speaker 6: can make the case one way or another about independent agencies,
• 21:22
  Speaker 6: but when you start printing money and you start making
• 21:26
  Speaker 6: decisions relevant to things like interest rates, and you start
• 21:30
  Speaker 6: politicizing that, there's not a single fiscally conservative Republican I
• 21:34
  Speaker 6: know thinks that's a good.
• 21:35
  Speaker 2: Idea, fascinating.
• 21:38
  Speaker 3: Well, with all of that said, Fred, I don't know
• 21:40
  Speaker 3: if you think the Supreme Court saved the day. But
• 21:42
  Speaker 3: did they save Lisa Cook's job? What happens that the
• 21:44
  Speaker 3: administration can prove in fact that she committed mortgage fraud?
• 21:48
  Speaker 2: What then?
• 21:49
  Speaker 7: Well, I don't think they will be able to do that.
• 21:52
  Speaker 7: Her explanations thus far sounded quite reasonable to me, but
• 21:56
  Speaker 7: that's not going to sound the administration from trying. The
• 21:59
  Speaker 7: Supreme Court did her job, and what the spin Court
• 22:02
  Speaker 7: did was even beyond and more so than than saving
• 22:04
  Speaker 7: the job of Lisa Cook. They preserve capitalism as king
• 22:07
  Speaker 7: of America, and so it was interested in the same
• 22:10
  Speaker 7: day that they said that you can remove other agency heads. Yes,
• 22:14
  Speaker 7: without a problem. And this is the power is appropate
• 22:16
  Speaker 7: with the executive head of the executive branch when it
• 22:19
  Speaker 7: comes to our money. When it comes to our money,
• 22:21
  Speaker 7: that should not be politicized, and we have to protect
• 22:23
  Speaker 7: our monetary policy at all costs unless I'm a capitalist.
• 22:26
  Speaker 7: And so you know, I find that to be very
• 22:28
  Speaker 7: interesting that capitalism cash still is king and as the
• 22:32
  Speaker 7: driver of American policy. And so I think that that's
• 22:35
  Speaker 7: going to be very interesting to see how that plays
• 22:37
  Speaker 7: out for the rest of the way. But as far
• 22:38
  Speaker 7: as as far as Cook is concerned, I think she is.
• 22:41
  Speaker 7: She's going to be good to go. I expect a
• 22:43
  Speaker 7: lot of ongoing litigation. But this is where we.
• 22:45
  Speaker 2: Are and we've got bipartisan capitalism.
• 22:48
  Speaker 3: Going on here on Greenberg Kennel. Stay with us on
• 22:51
  Speaker 3: Balance of Power. We'll have much more coming up after this.
• 22:57
  Speaker 1: You're listening to the Bloomberg Balance of podcast. Catch us
• 23:01
  Speaker 1: live weekdays at noon and five pm Eastern on Apple
• 23:04
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• 23:07
  Speaker 1: can also listen live on Amazon Alexa from our flagship
• 23:11
  Speaker 1: New York station.
• 23:12
  Speaker 3: Just say Alexa play Bloomberg eleven thirty. We're live in Washington.
• 23:17
  Speaker 3: Kyley's off today. I'm Joe, Matthew and Glad. You're joining
• 23:20
  Speaker 3: us here on Bloomberg Radio as well. If you want
• 23:21
  Speaker 3: to find us on YouTube search Bloomberg Business News Live.
• 23:24
  Speaker 3: We'll bring you right into the studio for our conversation
• 23:27
  Speaker 3: with Elizabeth Widrow.
• 23:28
  Speaker 2: We did hear from Lisa Cook. By the way, I.
• 23:30
  Speaker 3: Don't think I've had a chance to mention it. This
• 23:32
  Speaker 3: hour not only heard from the President who called this
• 23:35
  Speaker 3: a procedural matter, but in fact the Federal Reserve Governor
• 23:38
  Speaker 3: herself writing today's ruling, affirms a principle that has underpinned
• 23:42
  Speaker 3: sound economics stewardship for generations. The Fed must make all
• 23:46
  Speaker 3: its policy decisions guided by evidence and independent judgment, free
• 23:50
  Speaker 3: from political interference. Indeed, it was the Chief Justice himself,
• 23:55
  Speaker 3: John Roberts, who wrote monetary policy should not be subject
• 23:59
  Speaker 3: to political interference. And as the Court rules five four
• 24:02
  Speaker 3: that Lisa Cook can stay on the job for now,
• 24:06
  Speaker 3: we do question what might happen if, in fact, the
• 24:09
  Speaker 3: administration managed to prove the allegations against her. Would that
• 24:12
  Speaker 3: be a different dynamic in the eyes of the court.
• 24:16
  Speaker 3: Maybe not, based on what the Chief Justice writes, But
• 24:19
  Speaker 3: we ask someone in the know with great experience when
• 24:23
  Speaker 3: it comes to Supreme Court cases. Elizabeth Widro, the president
• 24:27
  Speaker 3: of the Constitutional Accountability Center, is back with us today,
• 24:30
  Speaker 3: and Elizabeth, it's great to see you. Welcome back to
• 24:32
  Speaker 3: Bloomberg TV and Radio. How would you attempt to answer
• 24:35
  Speaker 3: that question, knowing what we know in this ruling, if
• 24:38
  Speaker 3: in fact the allegations against Lisa Cook were proven, would
• 24:43
  Speaker 3: that cause be acknowledged as suitable for firing or not?
• 24:50
  Speaker 2: Well, I think you.
• 24:51
  Speaker 9: Know, the Supreme Court's decision today makes clear that they
• 24:54
  Speaker 9: are giving an additional measure protection to FED governors that
• 24:58
  Speaker 9: they're not given to people who are commissioners or leaders
• 25:02
  Speaker 9: at other independent agencies, which doesn't really have a lot
• 25:05
  Speaker 9: of internal coherence. But they certainly seem to be giving
• 25:08
  Speaker 9: deference to the FED. A lot of people are noting that,
• 25:12
  Speaker 9: you know, this court is generally very pro big business
• 25:16
  Speaker 9: and business interest support having a healthy, independent federal Reserve,
• 25:22
  Speaker 9: and so that could be one reason why they are
• 25:24
  Speaker 9: treating it different than the Federal Trade Commission, which often
• 25:26
  Speaker 9: works to protect individual consumers, workers, everyday Americans. But I
• 25:31
  Speaker 9: think it's unclear. It's clear that the Supreme Court is
• 25:34
  Speaker 9: saying that the fed statutory requirements of cause apply to
• 25:41
  Speaker 9: Lisa Cook, so she can't just be removed.
• 25:43
  Speaker 2: For no reason.
• 25:46
  Speaker 9: That she deserves some notice and procedure in order to
• 25:50
  Speaker 9: respond to the allegations against her. Now, if there is
• 25:53
  Speaker 9: a determination that she has committed some wrongdoing, then presumably
• 26:00
  Speaker 9: there would be more litigation about whether that qualifies the
• 26:04
  Speaker 9: allegations of course, our mortgage fraud. She responds and says,
• 26:06
  Speaker 9: it's just, you know, simply a slight discrepancy and paperwork, so,
• 26:10
  Speaker 9: you know, with proper notice, with proper procedure, you know,
• 26:14
  Speaker 9: the allegation seemed pretty flimsy and probably wouldn't go forward.
• 26:18
  Speaker 2: Really interesting.
• 26:20
  Speaker 3: The Court stopped short of clarifying that, which is why
• 26:23
  Speaker 3: I start there with you, Elizabeth, and I'd love to
• 26:24
  Speaker 3: hear more from you about the Slaughter case.
• 26:27
  Speaker 2: This overturns.
• 26:28
  Speaker 3: It's a six' to three decision overturns a nineteen thirty
• 26:32
  Speaker 3: five precedent that laid the legal groundwork for the modern administrative.
• 26:37
  Speaker 3: State Justice Sonia SOTOMAYOR i mentioned a couple of moments,
• 26:41
  Speaker 3: ago said the majority this isn't her. Dissent the majority.
• 26:44
  Speaker 3: Abandoned the doctrine of standing behind precedents is that the
• 26:47
  Speaker 3: case is that?
• 26:47
  Speaker 2: True, yes that is certainly.
• 26:50
  Speaker 9: True the case you mentioned is a case Called Humphrey's
• 26:53
  Speaker 9: executor and has become famous in sort of the conservative
• 26:57
  Speaker 9: legal movement as something that proponents of a very, strong
• 27:02
  Speaker 9: often unitary executive is the term they, use where the
• 27:06
  Speaker 9: executive has, incredible extraordinary. Power they have been seeking to
• 27:14
  Speaker 9: overturn home freeze executor for quite a long. Time that's
• 27:16
  Speaker 9: been a major goal of the conservative legal, movement which
• 27:19
  Speaker 9: was achieved.
• 27:20
  Speaker 10: Today as just.
• 27:21
  Speaker 9: As sotomayor argues against and her, dissent and you know the,
• 27:26
  Speaker 9: ideas you only overturn cases that people have relied upon
• 27:30
  Speaker 9: for decades when there is a good reason, to and
• 27:34
  Speaker 9: just as so to monymore certainly says there is no
• 27:36
  Speaker 9: good reason.
• 27:36
  Speaker 10: To.
• 27:37
  Speaker 9: Today it's important to preserve the independence OF ftc commissioners
• 27:42
  Speaker 9: in the same way that it's important to preserve the
• 27:44
  Speaker 9: importance of THE. Fed and so the rationale between saving
• 27:50
  Speaker 9: one and not saving the other doesn't seem to be
• 27:52
  Speaker 9: particularly based in constitutional text and history or statutory. Differences,
• 27:58
  Speaker 9: really it seems to be more about which agency the
• 28:01
  Speaker 9: conservative super majority thinks is more important to insulate from presidential.
• 28:06
  Speaker 3: Interference, well it's interesting, that you, know you just wonder
• 28:10
  Speaker 3: if this leads to a massive round of firing with every.
• 28:16
  Speaker 3: ADMINISTRATION i know there's a lot of turnover that comes with,
• 28:18
  Speaker 3: that but beyond some of the more obvious, positions does
• 28:22
  Speaker 3: every president just fire everybody and start from?
• 28:24
  Speaker 2: SCRATCH i think that is certainly a.
• 28:27
  Speaker 9: Fear and you, know the idea of insulating these commissioners
• 28:30
  Speaker 9: of these important, agencies you, know who are tasked with
• 28:32
  Speaker 9: really protecting The american people in both, economic civil, rights
• 28:37
  Speaker 9: all sorts of different. Ways the idea of preserving their,
• 28:39
  Speaker 9: independence someway and having lengthy terms that cut across presidential
• 28:43
  Speaker 9: terms is to have some, continuity to have some, consistency
• 28:47
  Speaker 9: to have institutional, memory and ensure that they're not just,
• 28:51
  Speaker 9: following you, know base political. Whims, obviously you know they're
• 28:56
  Speaker 9: part of the executive but you, KNOW i think the
• 28:59
  Speaker 9: concern here is, that particularly in The trump, administration when
• 29:02
  Speaker 9: you see a lot of attacks on the civil service
• 29:05
  Speaker 9: and the ability of government employees to act in that
• 29:09
  Speaker 9: public interest not necessarily just Follow trump's interests when it
• 29:14
  Speaker 9: conflicts with The american people's. Interests that's really part of the.
• 29:17
  Speaker 9: Concern but certainly if you can fire for any reason at,
• 29:22
  Speaker 9: all fire at, will commissioners, you it is likely that
• 29:25
  Speaker 9: it'll be used by presidents of both.
• 29:26
  Speaker 2: Parties, Elizabeth i've got less than a minute.
• 29:30
  Speaker 3: Left people have been asking the, question is this an
• 29:32
  Speaker 3: ideological court or simply a loyal one when it comes
• 29:36
  Speaker 3: to a man Named Donald. Trump did today's rulings help
• 29:38
  Speaker 3: to answer that. QUESTION i don't think they fully.
• 29:41
  Speaker 9: DID i think it's unquestionably an ideological. Court you see
• 29:45
  Speaker 9: major goals of the conservative legal movement achieved this term
• 29:48
  Speaker 9: with the absolute demolition of The Voting Rights, act which
• 29:52
  Speaker 9: is a tragedy For, america and today with the overturning
• 29:55
  Speaker 9: of protections of political appointees who are there to protect
• 30:00
  Speaker 9: The american.
• 30:01
  Speaker 3: People, Yeah, elizabeth it's great to see. You you're so
• 30:05
  Speaker 3: smart on this stuff and glad that you could be
• 30:06
  Speaker 3: with us. Today it's onder birthright. Citizenship tomorrow we might
• 30:10
  Speaker 3: have to Get Elizabeth widra. Back she's the president of
• 30:12
  Speaker 3: The Constitutional Accountability center WITH Us live On. Bloomberg coming,
• 30:16
  Speaker 3: up we'll talk To michael McKee about this And Congresswoman
• 30:19
  Speaker 3: Nicole Malia takas next On Bloomberg stay with us On
• 30:22
  Speaker 3: balance Of. Power we'll have much more coming up after.
• 30:25
  Speaker 1: This you're listening to The Bloomberg balance Of power. Podcast
• 30:33
  Speaker 1: catch us live weekdays at noon and five Pm eastern On,
• 30:36
  Speaker 1: Apple cockley And Android auto with The Bloomberg Business. App
• 30:39
  Speaker 1: listen on demand wherever you get your, podcasts or watch
• 30:43
  Speaker 1: us live on.
• 30:43
  Speaker 3: YouTube a few hours from now two and a half,
• 30:48
  Speaker 3: hours there's a very important briefing that's going to be
• 30:51
  Speaker 3: set for all members Of, congress including one of our next.
• 30:54
  Speaker 3: Guests we're going to be talking momentarily With Congresswoman Nicole Malia,
• 30:57
  Speaker 3: takas The republican From New. York will be briefed along
• 31:01
  Speaker 3: with all members of The house And senate By secretary
• 31:05
  Speaker 3: Of State Marco rubio And Steve.
• 31:06
  Speaker 2: Whitkoff an update On iran peace.
• 31:09
  Speaker 3: Talks this could be fascinating as we wait to learn
• 31:12
  Speaker 3: more about the on, again off again. Talks knowing that in,
• 31:15
  Speaker 3: fact the next round has been. Scheduled we thought before
• 31:19
  Speaker 3: The Supreme court, rule this would be the top story
• 31:21
  Speaker 3: of the, Day as The president, says peace talks with
• 31:23
  Speaker 3: the run are set to resume tomorrow In.
• 31:26
  Speaker 2: Doha we'll park that there for.
• 31:28
  Speaker 3: Now The Supreme court rulings really have taken over the news,
• 31:31
  Speaker 3: cycle though The president's been posting on truth social about
• 31:34
  Speaker 3: them since The scotis ruled That Lisa cook could in
• 31:37
  Speaker 3: fact stay in her, job at least for now at
• 31:39
  Speaker 3: The Federal, reserve and she may keep that job no
• 31:42
  Speaker 3: matter what happens with the investigation into her alleged mortgage. Fraud,
• 31:46
  Speaker 3: this of, course runs counter to a separate ruling that
• 31:50
  Speaker 3: made clear by The court and a six to three
• 31:52
  Speaker 3: decision overturning a nineteen thirty five president that allows The
• 31:56
  Speaker 3: president to essentially fire the.
• 31:57
  Speaker 2: Head of any other.
• 31:58
  Speaker 3: Agency reserve seems to be living in own world suddenly
• 32:03
  Speaker 3: based on these two, rulings And michael McKee JOINS us
• 32:05
  Speaker 3: with more. Now of, course he covers THE fed FOR
• 32:07
  Speaker 3: us as our International economics and policy. Correspondent he also
• 32:10
  Speaker 3: happens to be really smart when it comes to The High,
• 32:13
  Speaker 3: Court And, michael it's great to have you.
• 32:15
  Speaker 11: Back is this what we've learned? Today THE fed is simply.
• 32:17
  Speaker 11: Different THE fed is. Different according to The Supreme. Court
• 32:21
  Speaker 11: at least they believe that there's a tradition in The
• 32:25
  Speaker 11: United states is the way the decision, reads to have
• 32:28
  Speaker 11: an independent federal reserve that is not caught up in.
• 32:32
  Speaker 11: Politics and that was one of the reasons That Chief
• 32:36
  Speaker 11: Justice roberts gave in the opinion that he wrote for
• 32:41
  Speaker 11: Allowing Lisa cook to stay on that letting the president
• 32:45
  Speaker 11: fire someone at will from THE fed would take away
• 32:48
  Speaker 11: from that.
• 32:48
  Speaker 12: Independence, however they did this as a very narrow, Ruling.
• 32:52
  Speaker 12: Joe they said that in this, Case Lisa cook can
• 32:57
  Speaker 12: stay on the job while her case, proceeds and so
• 33:02
  Speaker 12: it is possible that The president could once again say
• 33:07
  Speaker 12: that there is allegedly, wrongdoing then give her a couple
• 33:12
  Speaker 12: of weeks or so to respond and make her, case
• 33:16
  Speaker 12: but then fire her. Anyway so there is a way
• 33:19
  Speaker 12: for the administration to make this. Worse but does the
• 33:23
  Speaker 12: president want to do that right? NOW i, mean The
• 33:25
  Speaker 12: Supreme court did not decide specifically that the president can't fire.
• 33:30
  Speaker 12: Anybody it's just part of the overall, ruling.
• 33:34
  Speaker 3: So that they simply simply tell them how to do, it, Then,
• 33:37
  Speaker 3: mike because The Chief Justice roberts, rights monetary policy should
• 33:41
  Speaker 3: not be subject to political. Interference so if the, case
• 33:44
  Speaker 3: presumably then can be made that there was, wrongdoing then
• 33:49
  Speaker 3: THE fed governor can be fired for cause or are
• 33:51
  Speaker 3: we going to need to test this in real time
• 33:53
  Speaker 3: to find?
• 33:54
  Speaker 12: Out probably need to test this in real. Time the
• 33:57
  Speaker 12: court did say that INDEPENDENT fed is a good thing
• 34:01
  Speaker 12: for the, country but they didn't say that it has to.
• 34:03
  Speaker 12: Be it said that you know that she can she
• 34:09
  Speaker 12: should have been given rather an opportunity to contest the.
• 34:13
  Speaker 12: Findings that's that's what's that issue. Now they did not
• 34:17
  Speaker 12: say that she has to be convicted of, anything and
• 34:20
  Speaker 12: they didn't rule on whether or not the president could
• 34:23
  Speaker 12: fire her for something that allegedly happened before she became
• 34:28
  Speaker 12: a member of THE. Fed so those are outstanding questions out,
• 34:32
  Speaker 12: there and we'll see if The president wants to pursue.
• 34:35
  Speaker 12: This if it's enough of a rabbit hole he wants
• 34:37
  Speaker 12: to go, down we sure.
• 34:39
  Speaker 3: Will and of course we're still waiting to find out
• 34:41
  Speaker 3: what they do with the investigation into J. PALACE i
• 34:44
  Speaker 3: guess we're all going to sit around here and. Wait,
• 34:46
  Speaker 3: michael thank you as, always he's been a busy guy,
• 34:49
  Speaker 3: today not because OF fed, news but, WELL i guess it.
• 34:52
  Speaker 3: Is it's gotus news that applies to THE, fed and
• 34:55
  Speaker 3: he's the best we have when it comes to. Analysis
• 34:57
  Speaker 3: A lisa Cook out with a, statement it's not just
• 34:59
  Speaker 3: the talking about. This she, SAYS i am grateful for this,
• 35:02
  Speaker 3: decision not for my own, sake but for the sake
• 35:04
  Speaker 3: of The american, people whose economic well being depends on
• 35:07
  Speaker 3: a central bank than answers to its, mission not political.
• 35:10
  Speaker 3: Intimidation we'll find out where this, goes of, course with
• 35:13
  Speaker 3: one more day OF scotus, rulings and it's going to
• 35:15
  Speaker 3: be birthright citizenship tomorrow. Morning we know that only because
• 35:19
  Speaker 3: it's still on the docket and tomorrow will in fact
• 35:21
  Speaker 3: be the final day that opinions are. Released so let's
• 35:24
  Speaker 3: meet back here at ten am tomorrow with a lot
• 35:27
  Speaker 3: more to talk.
• 35:28
  Speaker 2: About it's not the only news here In, washington D.
• 35:31
  Speaker 3: C without these rulings, today we'd probably be talking a
• 35:34
  Speaker 3: lot about the housing bill, again As Speaker Mike johnson
• 35:36
  Speaker 3: in fact is sending it to The president. Today this
• 35:39
  Speaker 3: is the one that could have been signed last week
• 35:40
  Speaker 3: before The president canceled the signing, ceremony but we're not
• 35:44
  Speaker 3: clear exactly on when that's going to, happen or even
• 35:46
  Speaker 3: if he is going to sign. It he could just
• 35:49
  Speaker 3: let the bill sit and it would become law in ten.
• 35:51
  Speaker 3: Days now that it's been formally transferred over to The White,
• 35:54
  Speaker 3: house we have a lot more to talk, about including
• 35:57
  Speaker 3: this With Congresswoman Nicole Malia. TAKAS i mentioned The republican
• 36:00
  Speaker 3: From New york is with us in studio today as
• 36:03
  Speaker 3: The house gets back to business in congressom and it's
• 36:05
  Speaker 3: great to see On bloomberg as always welcome. Back it's
• 36:07
  Speaker 3: A i think people are talking a lot today about
• 36:09
  Speaker 3: what they think is going to.
• 36:10
  Speaker 2: Happen do we know what's going to happen with this?
• 36:12
  Speaker 3: Bill as The president said that there'll be a ceremony
• 36:14
  Speaker 3: of some sort today or, ASSIGNING.
• 36:15
  Speaker 8: I THINK i think we know by. Now With President,
• 36:18
  Speaker 8: trump you really never know what's going to. Happen nobody
• 36:20
  Speaker 8: thought that he was not going to sign it last,
• 36:22
  Speaker 8: week BUT i do believe he will sign the. Bill
• 36:25
  Speaker 8: it is a very important piece of legislation that he
• 36:28
  Speaker 8: himself had advocated, for and it had broad bipartisan. SUPPORT i,
• 36:32
  Speaker 8: mean this passed overwhelmingly and really addresses issues of, supply
• 36:37
  Speaker 8: of access to, capital of, insurance ensuring that banks don't
• 36:41
  Speaker 8: outbid families to an extent where they are are taking
• 36:44
  Speaker 8: too much of housing supply off the. MARKET i think
• 36:47
  Speaker 8: it's a good piece of legislation that will deal with the.
• 36:50
  Speaker 8: Affordability is one of his top priorities in terms, of you,
• 36:53
  Speaker 8: know addressing some of these affordability issues prior to the.
• 36:56
  Speaker 10: ELECTION i think it.
• 36:57
  Speaker 2: Is a real.
• 36:58
  Speaker 8: Win it's an easy layup for him to just sign
• 37:00
  Speaker 8: it and let's try to do it kind of increase
• 37:03
  Speaker 8: some housing.
• 37:04
  Speaker 10: Supply and this is what you.
• 37:05
  Speaker 3: Want to be talking about when you go home for
• 37:06
  Speaker 3: Your fourth Of july, weekend right when you're talking two
• 37:09
  Speaker 3: people in marketing.
• 37:09
  Speaker 2: Parades you've got more where this came.
• 37:11
  Speaker 3: From with LEGISLATION i see here to cut capital gains
• 37:14
  Speaker 3: taxes for seniors selling their. Homes is this something that's
• 37:20
  Speaker 3: good for seniors to keep a couple of dollars in
• 37:21
  Speaker 3: their pocket or might it actually inspire some seniors to
• 37:25
  Speaker 3: move and loosen off the housing.
• 37:27
  Speaker 10: Market, yeah, look it's A i think it's a win win.
• 37:30
  Speaker 8: HERE i, mean let's be realistic about the capital gains
• 37:34
  Speaker 8: tax exemption has not increased from the current two hundred
• 37:37
  Speaker 8: and fifty thousand and five hundred thousand for married couple
• 37:40
  Speaker 8: Since Bill clinton was in, Office so it's been quite a.
• 37:43
  Speaker 8: While it needs to be. Modernized it was never. Indexed
• 37:45
  Speaker 8: my legislation would increase that to a million. Dollars it
• 37:49
  Speaker 8: would benefit senior citizens who have lived in their homes
• 37:51
  Speaker 8: for twenty five years or. More and, yeah the idea
• 37:54
  Speaker 8: here is that you, know many many seniors are putting
• 37:56
  Speaker 8: their homes in a trust because and then when they pass,
• 37:59
  Speaker 8: away they're chill drink at. It there's no tax dollars
• 38:02
  Speaker 8: that involved either at that, point so it's not really
• 38:04
  Speaker 8: a big. COST i don't think to the. Government we're
• 38:06
  Speaker 8: asking THE cbo for a score right. Now but WHAT
• 38:10
  Speaker 8: i will say is THAT i do both think it
• 38:11
  Speaker 8: is exactly what you. Said it will loosen up the housing,
• 38:14
  Speaker 8: market allows seniors who want to downsize But i've been
• 38:17
  Speaker 8: holding onto their home because they don't want to see
• 38:19
  Speaker 8: their nest, egg all their savings inequity in their home being.
• 38:22
  Speaker 10: Taxed at capital gains.
• 38:23
  Speaker 8: Rates and it'll open up that housing for younger families
• 38:27
  Speaker 8: to be able to move in create some economic activity
• 38:29
  Speaker 8: in our.
• 38:29
  Speaker 10: COMMUNITY i think is a good.
• 38:31
  Speaker 8: Thing we also have, legislation by the, way in a
• 38:33
  Speaker 8: bipartisan manner in The houseways And Means committee to increase
• 38:36
  Speaker 8: the capital gains tax exemption for home sales from its
• 38:40
  Speaker 8: current two fifty and five hundred, thousand doubling.
• 38:43
  Speaker 10: It SO i think, that you, know we should be
• 38:46
  Speaker 10: doing it for.
• 38:46
  Speaker 8: Everyone, yeah but if we can at least get it
• 38:48
  Speaker 8: done for seniors, now that would be. FANTASTIC i could
• 38:50
  Speaker 8: see something like this going in a reconciliation.
• 38:53
  Speaker 10: Package this is that.
• 38:54
  Speaker 3: The VEHICLE i was going to follow up with that
• 38:55
  Speaker 3: you might be able to find a home for this.
• 38:58
  Speaker 2: Bill.
• 38:58
  Speaker 8: YEAH i, mean, LOOK i think most tax policy would
• 39:01
  Speaker 8: go through a. Reconciliation we had so much success with
• 39:04
  Speaker 8: the working family's tax, cut from the no tax on,
• 39:07
  Speaker 8: tips no tax On Social, security the overtime, provisions the
• 39:10
  Speaker 8: child tax, credit The Trump savings, credits SO i mean
• 39:14
  Speaker 8: a lot has been used already and the first. Bill
• 39:17
  Speaker 8: so we ways and means are looking at what our
• 39:20
  Speaker 8: options are to build on that success and give more
• 39:24
  Speaker 8: tax breaks for senior, citizens for our working, families for Working.
• 39:29
  Speaker 8: Americans and that's the idea to keep more money in
• 39:31
  Speaker 8: the hands of Working americans as opposed To Uncle.
• 39:35
  Speaker 2: Sam you were a big proponent of The trump.
• 39:37
  Speaker 3: Accounts those are taking effect now apparently they're going to
• 39:40
  Speaker 3: ring the. Stockings they're going to ring the opening bell
• 39:43
  Speaker 3: in the oval. Office did you see? THIS i did
• 39:46
  Speaker 3: not see, that like a button next to the diet coke.
• 39:48
  Speaker 3: BUTTON i don't know how they do.
• 39:49
  Speaker 8: That, well, look, millions millions of children are already enrolled
• 39:53
  Speaker 8: in those baby, accounts and so it's not just for.
• 39:55
  Speaker 8: NEWBORNS i mean the idea was originally created for newborn
• 39:58
  Speaker 8: babies thousand dollars and you, know you get a start
• 40:03
  Speaker 8: there and families can invest more so at compounds and
• 40:06
  Speaker 8: obviously grows by the time they're. Eighteen but now other
• 40:09
  Speaker 8: private sector companies have done a great job being corporate
• 40:11
  Speaker 8: citizens saying that they'll they'll put in some money. Too
• 40:15
  Speaker 8: so older, kids not just newborn babies from twenty twenty,
• 40:18
  Speaker 8: five can benefit from those savings.
• 40:20
  Speaker 10: Accounts so it is a it is a good, THING i.
• 40:22
  Speaker 8: THINK i think in, general we need to teach more fiscal,
• 40:25
  Speaker 8: responsibility teach our young people about financial. Literacy and it's
• 40:30
  Speaker 8: one of the THINGS i just talked about WITH Jp
• 40:33
  Speaker 8: MORGAN Ceo Jamie diamond when he came to visit us
• 40:35
  Speaker 8: on the, hill like how do we how do we
• 40:38
  Speaker 8: bring more of this stuff into the classroom and teach young.
• 40:40
  Speaker 10: PEOPLE i think these baby savings ACCOUNTS i think is a.
• 40:43
  Speaker 3: Start how about, That Congress, woman you have an important.
• 40:45
  Speaker 3: BRIEFING i understand that four o'clock. Today it's in all
• 40:48
  Speaker 3: members briefing From Steve whitcoff on The iran peace.
• 40:54
  Speaker 2: TALKS i don't.
• 40:55
  Speaker 3: Know if you have specific questions for, him but that
• 40:58
  Speaker 3: seems like an important moment when they decide to brief
• 41:01
  Speaker 3: the entire membership as opposed to certain committee. Chairs what
• 41:04
  Speaker 3: does that tell you about where we are on the game?
• 41:06
  Speaker 3: Here you, know the round of peace talks.
• 41:07
  Speaker 8: Tomorrow, well, LOOK i imagine that the briefing is going
• 41:10
  Speaker 8: to be high level but not classified, obviously so it's
• 41:14
  Speaker 8: going to be limitations on what we'll be learning during this.
• 41:16
  Speaker 8: Call BUT i think it's important for us to all
• 41:18
  Speaker 8: get an, update and certainly members Of congress myself.
• 41:20
  Speaker 10: INCLUDED i want to know that if we're.
• 41:23
  Speaker 8: Loosening any sanctions On, iran or that we're unfreezing any
• 41:26
  Speaker 8: of their, assets that that money is not going to
• 41:28
  Speaker 8: go and fund these terrorist organizations Like, commas Like, hesibala
• 41:32
  Speaker 8: like others that have been so destructive and have murdered
• 41:37
  Speaker 8: so many. People we also want to make sure that
• 41:42
  Speaker 8: they do not have a nuclear, weapon that they're going
• 41:44
  Speaker 8: to adhere to these inspections to ensure that they're not
• 41:47
  Speaker 8: enriching nuclear weapon grade. Uranium so there's a lot of
• 41:51
  Speaker 8: questions on how we're going to be able to Trust
• 41:53
  Speaker 8: iran because obviously they're not. TRUSTWORTHY i think one of
• 41:56
  Speaker 8: the other issues THAT i want to bring up on this,
• 41:57
  Speaker 8: call it's related to The Middle, east is GETTING f
• 42:00
  Speaker 8: thirty five. Jets i'm one hundred percent opposed to. This you,
• 42:04
  Speaker 8: Know turkey is A nato, ally but Under, erdigon they've
• 42:07
  Speaker 8: not Sanctioned, russia they have harbard, hamas they have interrupted
• 42:13
  Speaker 8: COUNTER isis, operations AND i think that you, know they've
• 42:18
  Speaker 8: also called for the complete destruction Of. Israel so not
• 42:21
  Speaker 8: only that they are illegally running flights of military jets
• 42:26
  Speaker 8: Above greek islands and intimidating their, neighbor who is also
• 42:30
  Speaker 8: A nato, ally and they've been illegally Occupying cyprus for decades.
• 42:34
  Speaker 8: Now and SO i think that for that's WHERE i
• 42:38
  Speaker 8: have already said that to The White house That i'm
• 42:41
  Speaker 8: very opposed to. THIS i think it would be somebody
• 42:44
  Speaker 8: who is aligned themselves With russia And iran should not
• 42:47
  Speaker 8: have access to our premiere jets and that type of.
• 42:50
  Speaker 2: Intelligence god knows they've been asking for.
• 42:52
  Speaker 3: Them The secretary Of state is going to be in
• 42:54
  Speaker 3: this briefing and to be on this, Call Marco, RUBIO
• 42:55
  Speaker 3: i don't know if he's taken the reins FROM. Jd,
• 42:57
  Speaker 3: Evans but is that something you plan to talk to him?
• 42:59
  Speaker 3: About how is that for a different?
• 43:00
  Speaker 8: Forum, well, LOOK i think he just wants to overall
• 43:03
  Speaker 8: give us an, update and the members do have a
• 43:05
  Speaker 8: lot of. Questions we have not been briefed since these
• 43:09
  Speaker 8: negotiations have taken, place AND i think that it's appropriate
• 43:12
  Speaker 8: him to do. SO i would like for them to
• 43:13
  Speaker 8: come in and eventually give us a classified briefing because
• 43:15
  Speaker 8: that's when you really find out the stuff that you
• 43:17
  Speaker 8: can't read On, twitter and that's obviously what members Of
• 43:19
  Speaker 8: congress want access. To BUT i Think marco is a
• 43:23
  Speaker 8: he's a good, friend he's a very very smart. INDIVIDUAL
• 43:27
  Speaker 8: i believe he's going to go down as being the
• 43:28
  Speaker 8: Best secretary Of state that we've ever, had And i'm
• 43:31
  Speaker 8: very proud of the work that he's. Doing AND i
• 43:33
  Speaker 8: think he has the right job at the right.
• 43:35
  Speaker 3: Time, well we'd love to hear more to the extent
• 43:37
  Speaker 3: that we can about all of. This your marching in
• 43:39
  Speaker 3: Parades Staten, island fourth Of. July we have an old
• 43:42
  Speaker 3: one on fourth Of. July it's a great.
• 43:44
  Speaker 10: Priate it's always very, hot so that one hundred.
• 43:47
  Speaker 2: Degrees, congress, well of course it, is of course bailed me.
• 43:49
  Speaker 2: Out we'll be sweating to the oldies here In.
• 43:51
  Speaker 3: Washington Congress Wiman Nicole Mallia, takis The republican From New
• 43:55
  Speaker 3: york where us live in studio as we get things
• 43:57
  Speaker 3: rolling on A.
• 43:57
  Speaker 2: Monday thanks for listening to The balance Of power.
• 44:02
  Speaker 3: Podcast make sure to subscribe if you haven't, already At, Apple,
• 44:05
  Speaker 3: spotify or wherever you get your, podcasts and you can
• 44:08
  Speaker 3: find us live every weekday From, WASHINGTON dc at Noontime
• 44:12
  Speaker 3: eastern At bloomberg dot.
• 44:13
  Speaker 2: Com