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Mark interviews author John Carney from Breitbart News. · The Mark Simone Show

• 0:00
  Speaker 1: Mister New York Mark Simone or well, we'd like to
• 0:06
  Speaker 1: bring you the smartest people on earth. John Carney, brilliant
• 0:09
  Speaker 1: writer of nobody better on business, the economy. John Carney's
• 0:13
  Speaker 1: columns and his work. You can see it in bright
• 0:15
  Speaker 1: Bart Business Daily. You should subscribe to it, read it
• 0:18
  Speaker 1: every day bright Bart Business Daily. John Carney, how you.
• 0:21
  Speaker 2: Doing very good? Thanks for having me.
• 0:24
  Speaker 1: Mark Hey at your own Powell, what do you think
• 0:27
  Speaker 1: goes through his mind? Why doesn't he just say to himself,
• 0:30
  Speaker 1: let me step down and get the hell away from
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  Speaker 1: all this.
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  Speaker 2: You know, that's a good question. He only has a
• 0:36
  Speaker 2: few more months as chairman, and he's decided to make
• 0:41
  Speaker 2: those as explosive as possible rather than sort of quietly
• 0:46
  Speaker 2: ride out into the sunset. I think he's just what
• 0:50
  Speaker 2: we're seeing is he's taking in this very personally. Trump
• 0:53
  Speaker 2: has been very critical of him, and Howl has decided
• 0:57
  Speaker 2: I guess that he's had enough. Unfortunately, Palell actually, although
• 1:03
  Speaker 2: his chairmanship ends in May, he actually has two more
• 1:07
  Speaker 2: years to go on as governor term Normally a chairman
• 1:11
  Speaker 2: steps down from the governor's seat, but Pale, I think
• 1:15
  Speaker 2: is going to end up sticking around in part just
• 1:19
  Speaker 2: to sort of put a stick in Trump's eye because
• 1:21
  Speaker 2: he's so upset now.
• 1:23
  Speaker 1: A trouble of point a new FED chairman and then
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  Speaker 1: Powell remains on the board, but as a former chairman,
• 1:30
  Speaker 1: he can wield a lot of influence on the votes,
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  Speaker 1: on the decisions.
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  Speaker 2: Yeah, that's right. That's why the chairman have tended to
• 1:38
  Speaker 2: step down. I mean almost all of them have for
• 1:42
  Speaker 2: the last seventy five years. The last time somebody didn't
• 1:45
  Speaker 2: step down when they left the chairmanship was in nineteen
• 1:50
  Speaker 2: forty eight, so it's been a long time since this happened.
• 1:54
  Speaker 2: The reason why they stepped down is because you're clearly
• 1:57
  Speaker 2: undermining the new chairman when the old chairman, who you know,
• 2:01
  Speaker 2: ran things, who knows everybody on the FED, who's been
• 2:04
  Speaker 2: dealing with both the PLF officials and the entire staff
• 2:08
  Speaker 2: for years. In palace case, he's served two terms. If
• 2:13
  Speaker 2: he stays around, he will essentially become the shadow chairman.
• 2:17
  Speaker 2: It will damage the Fed's credibility and it will hurt
• 2:21
  Speaker 2: it institutionally. He really should go, but there it seems
• 2:26
  Speaker 2: increasingly likely that he's going to stick around and become
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  Speaker 2: sort of the shadow chairman of the Fed, or at
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  Speaker 2: least at least until through twenty twenty eight. Genuary twenty
• 2:40
  Speaker 2: twenty eight is when his final term will end.
• 2:44
  Speaker 1: Wow. John Carne, Breitbart Business. By the way, the daily
• 2:48
  Speaker 1: newsletter is excellent. Make sure you sign up for that
• 2:51
  Speaker 1: Breitbart daily newsletter, the Business Digest. Now President Trump will
• 2:57
  Speaker 1: appoint a new FED chairman. We don't know who it's
• 2:58
  Speaker 1: going to be. Can we be sure his name will
• 3:00
  Speaker 1: be Kevin Well?
• 3:04
  Speaker 2: This actually has gotten more complicated reasons because we've had
• 3:09
  Speaker 2: a couple senators say that they will that until this
• 3:14
  Speaker 2: fight with the Justice Department between the Justice Department and
• 3:17
  Speaker 2: the Fed is resolved, that they're going to oppose any nomination,
• 3:23
  Speaker 2: that they won't confirm any of Trump's nominees to the FED.
• 3:27
  Speaker 2: What that could mean is that Trump would have to
• 3:29
  Speaker 2: Trump still gets to pick somebody. Powell's term will end
• 3:34
  Speaker 2: when it ends in May. He will no longer be chairman,
• 3:37
  Speaker 2: even if they don't confirm a new one. It's unclear
• 3:41
  Speaker 2: exactly what happens in that case. Would the FED just
• 3:43
  Speaker 2: have no chairman? The way back in nineteen seventy eight,
• 3:47
  Speaker 2: the Carter administration looked into this very question, and they
• 3:50
  Speaker 2: determined that the president gets to a point a acting
• 3:55
  Speaker 2: FED chairman, but it has to be somebody who's already
• 3:58
  Speaker 2: on the FED. Oh, Trump has three appointees there now,
• 4:01
  Speaker 2: Christopher Waller, Michelle Bowman, and Steven Myron. So he could
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  Speaker 2: pick one of them and make them the acting chair.
• 4:12
  Speaker 1: Right now.
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  Speaker 2: Kevin Hassett and Kevin worsh are not on the FED.
• 4:16
  Speaker 2: They could not be picked if that was the case,
• 4:18
  Speaker 2: if the Senators were trying to block And there's a
• 4:21
  Speaker 2: lot of skepticism now, given this fight with the Justice Department,
• 4:27
  Speaker 2: whether Kevin Hassett could get confirmed. He's seen as very
• 4:32
  Speaker 2: close to Trump. He is Trump's top economic advisor in
• 4:35
  Speaker 2: the White House, and including Republican senators may push back
• 4:40
  Speaker 2: and say, we don't want somebody that close to the
• 4:42
  Speaker 2: president getting the nomination.
• 4:44
  Speaker 1: Well, this whole thing about the FED has to be
• 4:46
  Speaker 1: totally independent, totally separate. Is that always been the case?
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  Speaker 1: Is that really true?
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  Speaker 2: Yeah, it's not really true. Actually, historically the FED hasn't
• 4:58
  Speaker 2: been totally independent, sometimes for good, sometimes for bad. It
• 5:02
  Speaker 2: used to be by the way that the Treasury Secretary
• 5:05
  Speaker 2: sat on the board of the Federal Reserve. That got
• 5:08
  Speaker 2: changed decades ago. But the and typically the FED hasn't
• 5:16
  Speaker 2: actually usually been at odds when the president. They try
• 5:19
  Speaker 2: to help the economy grow. They don't get in the
• 5:22
  Speaker 2: way of presidential policy. Jerdan Powell is actually probably compromised
• 5:28
  Speaker 2: a bit of the Fed's independence by being so vocally
• 5:31
  Speaker 2: an opponent of the tariffs. You know, Trump's signature policy
• 5:37
  Speaker 2: has been under fire and criticized by the FED. That's unusual.
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  Speaker 2: The last time it happened really was probably Arthur Burns
• 5:46
  Speaker 2: when Jimmy Carter came in and Burns was critical of
• 5:49
  Speaker 2: the Democrats economic plans. But Burns actually was probably not
• 5:55
  Speaker 2: independent enough from the Nixon administration and kept rates low,
• 6:01
  Speaker 2: helping spur inflation back then. So it's not really true
• 6:05
  Speaker 2: that they're always independent. It would probably be good to
• 6:07
  Speaker 2: have them be independent, but not in a way that
• 6:11
  Speaker 2: interferes with the political process. They need to stay keep
• 6:15
  Speaker 2: their distance from that. Alan Greenspan was good at keeping
• 6:18
  Speaker 2: his distance of that. Frankly, so is Bernanki and even
• 6:21
  Speaker 2: yelling were better than what Powell has done, which has
• 6:25
  Speaker 2: really been to enmesh himself in the politics of the day,
• 6:29
  Speaker 2: which is a mistake.
• 6:30
  Speaker 1: Yeah, he says he's like a financial Fauci, isn't he
• 6:34
  Speaker 1: kind of.
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  Speaker 2: I love that idea, he really so. One thing that
• 6:40
  Speaker 2: you can notice about how he thinks about his role
• 6:44
  Speaker 2: is when Ben Bernanke began doing press conferences, he only
• 6:49
  Speaker 2: did them every other meeting, and he did them sitting
• 6:52
  Speaker 2: behind the desk. It was like going to office hours
• 6:54
  Speaker 2: like the economics professor. Powell changed that he does them
• 6:59
  Speaker 2: every meeting, and he doesn't standing up at a podium
• 7:03
  Speaker 2: as if he were an elected official. That I think
• 7:06
  Speaker 2: was intentional. It's made him a lot more visible, and frankly,
• 7:10
  Speaker 2: it makes him a bigger part of the political process.
• 7:14
  Speaker 2: Which again, if the FED wants to preserve its independence,
• 7:18
  Speaker 2: it needs to stay out of politics. It needs to
• 7:20
  Speaker 2: stay in its own lane. The next guy should probably
• 7:24
  Speaker 2: not hold a press conference every meeting, or at the
• 7:27
  Speaker 2: very least go back to the days where Yellen and
• 7:31
  Speaker 2: Bernanki did it from behind a desk. Don't try to
• 7:35
  Speaker 2: stand up there and look like your press conference is,
• 7:39
  Speaker 2: you know, a White House press conference, which is what
• 7:41
  Speaker 2: they look like.
• 7:42
  Speaker 1: Hey, John, Connie, WILLI on a minute left. But for
• 7:44
  Speaker 1: somebody might say to themselves, well, the president wants rates
• 7:47
  Speaker 1: lowered if the economy is going to do so well
• 7:49
  Speaker 1: if it's booming. Do you need rates?
• 7:51
  Speaker 2: Lord, The weakest part of the economy is the right
• 7:56
  Speaker 2: now is the part that is most exposed to interest rates,
• 8:00
  Speaker 2: which is the housing market. We probably need rates lower
• 8:04
  Speaker 2: to unfreeze the housing market. A lot of people have
• 8:07
  Speaker 2: the situation where they are. They got a low interest
• 8:09
  Speaker 2: rate mortgage back during the pandemic. They might want to
• 8:13
  Speaker 2: sell today, but they would have to trade into a
• 8:15
  Speaker 2: much higher interest rate mortgage, so they feel locked in.
• 8:18
  Speaker 2: That's met very low supply of existing homes on the market,
• 8:22
  Speaker 2: and that's pushed up prices a lot. We may get
• 8:25
  Speaker 2: some if we bring rates down. I think we'll get
• 8:27
  Speaker 2: some resolution to that.
• 8:28
  Speaker 1: All the brilliant John Carney Read him every day bright
• 8:32
  Speaker 1: Bart Business Digest and make sure you sign up for
• 8:35
  Speaker 1: his daily newsletter. It's brilliant stuff every day bright Bart
• 8:39
  Speaker 1: Business Digest, the daily newsletter. John Carney, thanks for being.
• 8:43
  Speaker 2: With us, Thanks for having me Mark, I.
• 8:46
  Speaker 1: Take care, Hey, everybody. Also, don't forget Buck and Clay
• 8:49
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• 8:51
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• 8:54
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• 9:00
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• 9:03
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