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White House Plans Hearing For Fed's Cook · Balance of Power

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Speaker 1: Bloomberg Audio Studios.
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Speaker 2: Podcasts. Radio.
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Speaker 3: News.
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Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch
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Speaker 4: Continue to keep you up to date here on Balance
0:27
Speaker 4: of Power about the ongoing disputes between President Trump and
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Speaker 4: varying members of the Federal Reserve Board. Jerome Powell, of course,
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Speaker 4: was long included in that and perhaps still is so,
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Speaker 4: as was Lisa Cook, who, of course, was attempted to
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Speaker 4: be fired. This administration attempted to fire her over allegations
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Speaker 4: of mortgage fraud, which she denies. There's been a number
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Speaker 4: of court cases around this, including going all the way
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Speaker 4: up to the Supreme Court, which has allowed her to
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Speaker 4: remain in the job as this fight continues. And apparently
0:53
Speaker 4: this fight is now going directly to the White House,
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Speaker 4: which is forming a committee, we learned today, Joe, to
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Speaker 4: investigate these allegations. And we'll have her appear before the
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Speaker 4: committee on November 5th. Her attorneys are saying today that
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Speaker 4: this hearing that they have scheduled on that day, they
1:12
Speaker 4: have grave doubts as to whether it's a legitimate one
1:14
Speaker 4: that would conform to the law.
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Speaker 5: Yeah, that'd be a little of quite the statement, as always.
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Speaker 5: If it is anything close to objective, the conclusion will
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Speaker 5: be Governor Cook did not commit mortgage fraud, leaving no
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Speaker 5: cause to remove her from the Federal Reserve Board. Even
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Speaker 5: if that's the case, though, who would they be forwarding
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Speaker 5: this information to and exactly under what authority is our question?
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Speaker 5: And we'll start there with Tyler Kendall. Ahead of our
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Speaker 5: conversation with Michelle Brouhard, we want to get to the
1:37
Speaker 5: hurricane and the impact on oil prices with news from
1:40
Speaker 5: the Strait of Hormuz. Tyler is our Washington correspondent. and
1:44
Speaker 5: live on the North Lawn of the White House. Tyler,
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Speaker 5: as Kayleigh mentioned, we'll be hearing on November 5th. How's
1:49
Speaker 5: this all going to work?
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Speaker 3: At this point, it's unclear, and it's unclear if we'll
1:53
Speaker 3: get actually any live pictures from that hearing. According to
1:56
Speaker 3: the memorandum released by the White House, it's going to
1:59
Speaker 3: be behind closed doors. Fed Governor Lisa Cook can submit
2:03
Speaker 3: an official statement ahead of time and be able to
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Speaker 3: bring her lawyer into the room. But we are still
2:08
Speaker 3: waiting on further details, much to the points that both
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Speaker 3: of you are bringing up about the legality around this.
2:15
Speaker 3: Lisa Cook's own lawyers say that they have concerns, but
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Speaker 3: they went on in that statement to say that they
2:20
Speaker 3: are actively engaging with the White House to evaluate whether the, quote,
2:24
Speaker 3: process proposed has a possibility of being a genuine one
2:28
Speaker 3: and not simply a box checking exercise, adding that Cook
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Speaker 3: welcomes the opportunity to clear her name. So this may
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Speaker 3: be something that continues to develop. We're definitely going to
2:40
Speaker 3: stay on top of it because, of course, it has
2:42
Speaker 3: very big implications when it comes to the independents. of
2:45
Speaker 3: the central bank. Joe and Kayleigh, as you both know,
2:47
Speaker 3: the backdrop being that back in June, the Supreme Court
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Speaker 3: had ruled against the Trump administration in its bid to
2:54
Speaker 3: oust Cook, ruling that she can retain her job for
2:57
Speaker 3: now because she wasn't given that due process. And I
3:00
Speaker 3: think that idea is going to continue to come up,
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Speaker 3: as we know there is a very high legal bar
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Speaker 3: to remove a Federal Reserve official from their position.
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Speaker 4: Well, Tyler, in addition to getting this news from the
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Speaker 4: White House, we know that President Trump spoke at the
3:15
Speaker 4: White House earlier today at a Columbus Day event, and
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Speaker 4: we'll be hearing from him as well later on this
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Speaker 4: evening when he travels to Syracuse, New York. What's it about,
3:24
Speaker 4: and who's going to be with him?
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Speaker 3: Well, Kayleigh, at this point, President Trump is actively going
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Speaker 3: on the campaign trail. Interesting enough, though, that this is
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Speaker 3: a place That's not considered to be a Republican stronghold
3:35
Speaker 3: like a lot of those other events that we've seen
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Speaker 3: him at earlier this week. New York is a place
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Speaker 3: where registered Democrats outnumber Republicans two to one. But this
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Speaker 3: is really seen as a way to help bolster some
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Speaker 3: of the congressional candidates, but also potentially the gubernatorial candidate,
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Speaker 3: Bruce Blakeman, who is running against the incumbent Kathy Hochul.
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Speaker 3: I pulled these statistics from the last hour, but Blakeman
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Speaker 3: really behind when it comes to the money. $ 178, 000 in
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Speaker 3: the bank compared to $ 19 million for Governor Hochul in
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Speaker 3: terms of cash on hand. So perhaps President Trump could
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Speaker 3: be there to try to bolster some of the funding.
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Speaker 3: and fundraising that goes into these races. But as you
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Speaker 3: both know, the dilemma at the moment is what does
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Speaker 3: President Trump's presence in these states mean for those down
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Speaker 3: ballot candidates? Mike Lawler, for example, Republican running in a
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Speaker 3: district further away from Syracuse. That's one of the reasons
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Speaker 3: why his campaign says he will not be there tonight.
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Speaker 3: But that does underscore the balancing act that many of
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Speaker 3: these candidates have to face.
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Speaker 5: It's like a five or six hour drive, Tyler. Gas
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Speaker 5: is expensive. I need to ask you with the expensive
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Speaker 5: gas in mind about the latest from Iran. The president
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Speaker 5: said yesterday that he would not attack Iran before the
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Speaker 5: midterm elections. But Iran is escalating attacks in the Strait
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Speaker 5: of Hormuz to the point of seeing a lower number
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Speaker 5: of barrels getting through the strait overnight. The president just
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Speaker 5: said in this Columbus Day event that millions of barrels
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Speaker 5: got through last evening. Do we have a sense of
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Speaker 5: what is actually going on?
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Speaker 3: Well, at the moment, Joe, there has been a significant
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Speaker 3: uptick in attacks in the Strait of Hormuz. We got
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Speaker 3: an update from the U.K. Maritime Trade Organization earlier this
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Speaker 3: week that says that so far, the month of October,
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Speaker 3: we've seen nine direct attacks on ships. For context, that
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Speaker 3: is half the amount for the entire month of September.
5:25
Speaker 3: So we are escalating at a very quick pace here.
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Speaker 3: We heard from Iranian state media overnight as well that
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Speaker 3: ships that were transiting through what they're calling illegal routes
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Speaker 3: were hit by mines in Hormuz. The straight raising questions,
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Speaker 3: of course, by the messaging that we have heard that
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Speaker 3: the mines had been cleared. This contributes to what feels
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Speaker 3: like we are pointed toward escalation. We had heard President Trump, though,
5:48
Speaker 3: as you mentioned, tamped down on those reports that he
5:51
Speaker 3: was weighing military option before the midterms. Though, as we've discussed,
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Speaker 3: oftentimes President Trump's statements don't necessarily align with what ends
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Speaker 3: up being the.
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Speaker 6: Course of action.
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Speaker 3: So perhaps it could be misdirection or it could be
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Speaker 3: listening issues. to what is dismay with the conflict in Iran.
6:07
Speaker 3: But one thing is for sure, voters want action. We
6:10
Speaker 3: had a new pullout from Pew Research overnight that showed
6:13
Speaker 3: deep distrust in terms of how President Trump has been
6:17
Speaker 3: utilizing the military in the conflict in Iran. So we'll
6:21
Speaker 3: have to see how it ultimately goes from here. Of course,
6:24
Speaker 3: we're also watching the Houthis in Saudi Arabia. That conflict
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Speaker 3: is escalating as well.
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Speaker 7: Indeed.
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Speaker 4: All right. Bloomberg's Tyler Cundell live at the White House
6:32
Speaker 4: for us on this Friday. Tyler, thank you so much.
6:36
Speaker 4: And we want to further explore the reality of how
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Speaker 4: much crude is moving through the Middle East right now
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Speaker 4: amid all this escalation as we turn to Michelle Brohard
6:44
Speaker 4: joining us from Kepler, where she's head of policy and
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Speaker 4: geopolitical risk. Michelle, welcome back to Bloomberg TV and radio.
6:52
Speaker 4: What is your real time read on what is getting
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Speaker 4: through the straight of four moves right now as Iran
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Speaker 4: seems to be upping its threat against commercial shipping?
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Speaker 8: Well, Kayleigh, I'm glad you asked because we get the
7:05
Speaker 8: question all the time and we've put together a new
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Speaker 8: way of displaying the data so that we can see
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Speaker 8: collectively how much is getting out of the region. So
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Speaker 8: not just through the Strait, but through the Red Sea,
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Speaker 8: through ship-to-ship transfers in.
7:18
Speaker 6: The Gulf of Oman.
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Speaker 8: And we have a two-day lag to make sure that
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Speaker 8: we capture everything accurately so that we're not misreporting data.
7:25
Speaker 8: And as of October 7th, we had 19.5 million barrels
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Speaker 8: a day of oil and refined products leaving. 17.3 million
7:34
Speaker 8: barrels a day of that is crude oil, and the
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Speaker 8: remaining is refined products, which means refined products are down,
7:43
Speaker 8: they're 2.1 million barrels a day, down from 6.3 million
7:46
Speaker 8: barrels a day from the year prior. So a pretty
7:49
Speaker 8: significant recovery in crude without a significant recovery in products,
7:53
Speaker 8: which again brings to the high prices in diesel, gasoline,
7:57
Speaker 8: and jet fuel.
7:59
Speaker 7: Interesting.
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Speaker 5: This, of course, follows oil flows through the Strait, rebounding
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Speaker 5: close to pre-war levels in September and early this month.
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Speaker 5: How expensive, how difficult is it to maintain those types
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Speaker 5: of flows when you consider the naval escorts that are required?
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Speaker 8: Yeah, you know, we don't exactly know how much it's
8:20
Speaker 8: costing the U.S. Navy to send, to be able to
8:23
Speaker 8: escort those ships through. We know that freight rates are
8:27
Speaker 8: the highest. I mean, they're a hundred times higher than
8:30
Speaker 8: where they were this time last year. And I think
8:34
Speaker 8: the problem that we're really starting to see and the
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Speaker 8: reason that we're going to have a really hard time
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Speaker 8: seeing crude prices come down are these extremely high freight.
8:41
Speaker 6: Rates that we're seeing. And those freight rates include insurance.
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Speaker 8: They include the fact that there's not a lot of freight,
8:47
Speaker 8: not a lot of ships available to bring them through.
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Speaker 8: And we also keep in mind, don't have Iranian barrels
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Speaker 8: that we're leaving before. So those tankers are also offline.
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Speaker 8: So there's a shortage of tankers. There is super high
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Speaker 8: insurance premiums. There's super high costs just getting the ships
9:03
Speaker 8: out of the strait. And so because those freight rates
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Speaker 8: continue to remain high, we continue to have high prices
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Speaker 8: in crude.
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Speaker 4: Well, just on those Iranian barrels, Michelle, is there any...
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Speaker 4: Iranian product that remains on the water? Has all of
9:18
Speaker 4: that been exhausted? It's one thing for a new product
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Speaker 4: to be leaving Iran. It's another fourth product that already
9:24
Speaker 4: was able to exit to have reached its end destination
9:28
Speaker 4: and for there to be nothing left. Are we at
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Speaker 4: that point?
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Speaker 8: Yeah, we're getting near the point where Iranian crude on
9:35
Speaker 8: the water has started to draw down to levels that
9:39
Speaker 8: it's just a trickle at this point. Um, so that is,
9:43
Speaker 8: that is part, but also that fleet of tankers is offline.
9:47
Speaker 8: So we don't even have that fleet of tankers moving,
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Speaker 8: moving any crude around, whether it's Iranian crude or Iraqi crude,
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Speaker 8: like those tankers, because they're dark tankers and, they're illicit,
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Speaker 8: we just don't even see them participating in the marketplace,
10:00
Speaker 8: keeping freight rates, again, really high.
10:03
Speaker 5: I'm curious about the insurance costs that are tied to
10:06
Speaker 5: shipping through the strait right now. Michelle, this has been
10:09
Speaker 5: a moving target as well. And we saw reporting last
10:12
Speaker 5: week in the Wall Street Journal that sailors are being
10:15
Speaker 5: offered $ 25, 000 bonuses to do the cannonball run in the
10:20
Speaker 5: just to get through that waterway. There was a time
10:23
Speaker 5: when insurers wouldn't even have this conversation. What is it
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Speaker 5: like now?
10:28
Speaker 6: You know, I do actually have a lot of questions
10:30
Speaker 6: about who is insuring, right? We know that the U.S.
10:32
Speaker 8: Government offered insurance to some of these ships that were
10:35
Speaker 8: passing through.
10:36
Speaker 6: Are they getting insurance through the U.S. government?
10:38
Speaker 8: Are the countries that are sending the ships through, are
10:41
Speaker 8: they insuring them? So who's actually insuring these ships? And Again,
10:46
Speaker 8: I saw that article as well. I think they said
10:48
Speaker 8: that the seaman can make up to like $ 100, 000 just
10:54
Speaker 8: to take the ships out. So they get a signing bonus,
10:58
Speaker 8: plus they get a really high salary. So just moving
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Speaker 8: those ships out is an extremely high cost to a
11:04
Speaker 8: person's life, but also just the ship in general. It's
11:06
Speaker 8: an expensive ship to move through the strait. And if
11:09
Speaker 8: one of them gets hit or catches on fire, then
11:11
Speaker 8: you really... have another ship that's offline, right? You're removing
11:16
Speaker 8: supply from the ship market and removing that kind of
11:19
Speaker 8: supply from the ship market keeps freight rates high, right?
11:21
Speaker 6: It keeps going back to the same answer.
11:23
Speaker 8: I know I keep repeating it, but it goes back
11:24
Speaker 8: to the same answer, which is you need to solve
11:26
Speaker 8: the freight rate problem. And taking supply offline, whether they're
11:30
Speaker 8: getting hit by mines in the Strait or whether they're
11:33
Speaker 8: getting hit by missiles from Iran or if they just
11:37
Speaker 8: aren't even brave enough to transit the Strait, all of
11:42
Speaker 8: those things are keeping freight rates significantly higher than where
11:44
Speaker 8: they should be.
11:46
Speaker 4: Well, and we've been focusing on the Strait of Hormuz,
11:48
Speaker 4: but what about the Bala Mamdab, Michelle, as we watch
11:51
Speaker 4: what's happening off the coast of Yemen as Saudis are
11:54
Speaker 4: actively on the assault, along with the Yemeni government, against
11:59
Speaker 4: the Houthis? How precarious is that potential choke point?
12:03
Speaker 2: Right.
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Speaker 8: That choke point also is up there with the Strait
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Speaker 8: of Hormuz, and it's very difficult for these ships to transit,
12:10
Speaker 8: keeping insurance rates high, even going through the BAAB, and
12:14
Speaker 8: probably even going through the Suez Canal, because those Houthis
12:18
Speaker 8: can actually get some of those drones up there to
12:20
Speaker 8: hit some of the targets even.
12:21
Speaker 6: Further north in the Red Sea.
12:23
Speaker 8: And especially as the Houthis start to make ground into,
12:26
Speaker 8: I don't think they've crossed into southern Saudi Arabia, but
12:29
Speaker 8: as they move further north into Yemen, then you can
12:32
Speaker 8: start to see them really target some ships that are
12:34
Speaker 8: further up into the Red Sea. And so it's going
12:37
Speaker 8: to continue to put ships at risk in both The Suez,
12:42
Speaker 8: the Bab, and the.
12:44
Speaker 6: Strait of Hormuz.
12:46
Speaker 5: Quite a bit of timing to add a hurricane here, Michelle.
12:49
Speaker 5: It's our first of the season. That's going to be
12:52
Speaker 5: knocking on the Gulf Coast tonight and into tomorrow. What
12:54
Speaker 5: will Isaias mean if it stays on this track?
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Speaker 6: Joe, it's such a good point.
13:00
Speaker 8: I mean, if you couldn't, you can't add one more thing.
13:02
Speaker 8: This market is not, is not hurricane ready for sure.
13:06
Speaker 8: We have currently 1.2 million barrels a day offline, um,
13:10
Speaker 8: due to just closures from the hurricane. They can come
13:12
Speaker 8: back up as long as no platforms are hurt and
13:13
Speaker 8: then come back pretty quickly. Thankfully there's no refining capacity offline.
13:18
Speaker 8: So as long as we don't have refining capacity offline,
13:21
Speaker 8: if we don't lose any diesel, if we at least
13:25
Speaker 8: refined products will be able to chug along. But losing
13:29
Speaker 8: 1.2 million barrels a day of crude oil isn't helpful
13:32
Speaker 8: in a market that's already at really low inventories and
13:36
Speaker 8: already has really high crude prices due to just the
13:41
Speaker 8: inability to get crude into the refinery or into the
13:45
Speaker 8: refining regions.
13:48
Speaker 4: And if we see a material refinery offline series, if
13:52
Speaker 4: the storm intensifies or is worse than feared, Michelle, how
13:56
Speaker 4: would that translate into prices?
13:59
Speaker 8: Yeah, it'll actually be interesting because it will be harmful
14:04
Speaker 8: not just for the global price, but it will be
14:06
Speaker 8: harmful for the U.S.
14:07
Speaker 7: Price.
14:07
Speaker 6: And it's not.
14:08
Speaker 8: Something that the administration probably is looking forward to going
14:12
Speaker 8: into this election.
14:13
Speaker 6: If it does take out refineries, I mean.
14:16
Speaker 8: I remember, I'm sure you guys remember Hurricane Harvey, which
14:19
Speaker 8: came through in 2017, which they didn't think was going
14:21
Speaker 8: to be that bad and ended up flooding a lot
14:23
Speaker 8: of Houston refineries. And so if we do see something
14:26
Speaker 8: that is a surprise where it starts taking out some
14:28
Speaker 8: of the refineries, then you will see a significant spike
14:32
Speaker 8: in refined products in the U.S., as well as globally,
14:36
Speaker 8: because the U.S.
14:37
Speaker 6: Is such a large exporter.
14:38
Speaker 8: I don't anticipate seeing that happen this time, but of course,
14:43
Speaker 8: anything can happen at this point. And we do know
14:46
Speaker 8: that Trump said there's going to be some big diesel
14:49
Speaker 8: announcement coming soon. And I'm curious what that diesel announcement
14:53
Speaker 8: is going to look like if that's in relation to
14:55
Speaker 8: this hurricane that's coming also.
14:56
Speaker 5: Yeah, we're dying to know what that is as well, Michelle.
14:59
Speaker 5: And when we find out, of course, we'll let you
15:00
Speaker 5: all know. Michelle Brouhard, really great to have you back.
15:03
Speaker 5: Kepra's doing really important work tracking the barrels through the
15:06
Speaker 5: Strait and through the region. Head of Policy and Geopolitical Risk,
15:10
Speaker 5: Michelle Brouhard with us live on Bloomberg. We're going to
15:12
Speaker 5: turn our attention to this ICE shooting in New York
15:15
Speaker 5: coming up. Bloomberg's Miles Miller, our senior reporter on national security,
15:20
Speaker 5: is going to join us here in studio. And we'll
15:22
Speaker 5: assemble our political panel, Jeanne Shanzano and Lisa Kamusor Miller,
15:26
Speaker 5: along the ride here on the Friday edition of.
15:27
Speaker 7: Balance of Power.
15:28
Speaker 5: Stay with us on Balance of Power. We'll have much
15:30
Speaker 5: more coming up after this.
15:35
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch
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15:54
Speaker 4: It's on New York that we keep our focus now
15:56
Speaker 4: on the aftermath of a shooting in Manhattan yesterday by
16:00
Speaker 4: ICE in the afternoon. Non-lethal, but seven rounds went into
16:03
Speaker 4: a vehicle that carried not only the man they were targeting,
16:07
Speaker 4: but his five-year-old son, who was also in the car
16:10
Speaker 4: and was uninjured. The entire episode sparking backlash from protesters
16:14
Speaker 4: in the city and from the mayor of the city himself,
16:17
Speaker 4: Zoran Mamdani, who is demanding now that ICE end enforcement
16:20
Speaker 4: operations there.
16:21
Speaker 3: Listen.
16:22
Speaker 9: We know, and I have said this directly, whether to
16:26
Speaker 9: the president or to the public, ICE undermines public safety.
16:31
Speaker 10: It makes us less safe.
16:33
Speaker 9: New York City will not stand by while ICE agents
16:37
Speaker 9: shoot New Yorkers.
16:38
Speaker 7: And we will not.
16:39
Speaker 9: Back down from the demand that so many, including myself,
16:42
Speaker 9: have put forward time and again. This is an agency
16:46
Speaker 9: that must be abolished.
16:49
Speaker 5: An agency that must be abolished. The mayor referred to
16:53
Speaker 5: ICE as an agency rotten to its core. Fast forward
16:58
Speaker 5: to this morning and the Secretary of Homeland Security out
17:01
Speaker 5: before cameras and microphones, Mark Wayne Mullen, defending the shooting
17:06
Speaker 5: of this man by an immigration officer in New York
17:08
Speaker 5: and pushing back hard on the mayor. Let's listen.
17:12
Speaker 11: He said that ICE is rotten to the core.
17:17
Speaker 3: Really?
17:20
Speaker 11: Men and women at ICE each day are enforcing the
17:22
Speaker 11: laws that he refuses to enforce. We arrest thousands weekly
17:30
Speaker 11: that are criminals going after the worst of the worst,
17:33
Speaker 11: and he turns a blind eye to it.
17:36
Speaker 5: At that news conference was Bloomberg's Miles Miller and our
17:40
Speaker 5: senior reporter for national security. I'm glad to say he's
17:43
Speaker 5: with us now in studio. Miles, we feel like we've
17:46
Speaker 5: been here before. What's different this time?
17:48
Speaker 10: Well, I think the thing that's different here is twofold.
17:52
Speaker 10: The one thing is that this happened in New York.
17:55
Speaker 10: And there has been quite a conversation between Mayor Mamdani,
17:59
Speaker 10: who has had a really interesting relationship with the president,
18:02
Speaker 10: and also Governor Hochul, who have both said that they
18:05
Speaker 10: don't want ICE enforcement in New York and there needs
18:07
Speaker 10: to be a pause in enforcement. You had an individual
18:09
Speaker 10: here who said, ICE had a detainer on for two
18:14
Speaker 10: prior criminal cases in New York. Once they lodge a detainer,
18:17
Speaker 10: they want to go and get that person. In this instance,
18:20
Speaker 10: he had his child in the backseat. And Markway Mullins
18:24
Speaker 10: said this morning it was unclear that the agents knew
18:26
Speaker 10: that there was a child in the backseat, that he
18:28
Speaker 10: tried to ram at them. And that's what caused him
18:31
Speaker 10: to be shot. And that is what is sort of
18:35
Speaker 10: creating this powder keg moment right now for ICE Homeland
18:38
Speaker 10: Security and the officials in New York.
18:41
Speaker 4: So when it comes to the investigation, have we seen
18:43
Speaker 4: a video of the actual incident yet? I saw that
18:46
Speaker 4: NYPD put out a body cam video of one of
18:49
Speaker 4: the responding officers, but that was after the shooting had
18:51
Speaker 4: already taken place.
18:52
Speaker 10: We've seen mostly bystander videos in the aftermath of what happened. Um,
18:57
Speaker 10: the beginning of it is caught on camera, but then, uh,
19:00
Speaker 10: it sort of goes out of frame. Um, you know,
19:03
Speaker 10: I asked the Homeland security secretary today, you know, was
19:07
Speaker 10: it possible that they didn't know that there was a
19:09
Speaker 10: child in the backseat of the car? What kind of
19:11
Speaker 10: surveillance did they do? Because they certainly were looking for
19:14
Speaker 10: him since September. Apparently, when they went to arrest him
19:17
Speaker 10: in September, he ran from them. And then they tried
19:19
Speaker 10: to get him again yesterday. And that's when this all unfolded.
19:23
Speaker 10: And that much seems like it's not clear. But the
19:26
Speaker 10: FBI is going to do this investigation into what happened here.
19:29
Speaker 10: But you can imagine that New York is very different
19:31
Speaker 10: than Minnesota, where those other two shootings, those fatal shootings happened.
19:34
Speaker 10: You know, New York officials will try to get involved
19:36
Speaker 10: at every step. The NYPD held that crime scene. So
19:40
Speaker 10: they want a piece of it. So does the state
19:42
Speaker 10: attorney general and others who are going to be looking
19:44
Speaker 10: into just what happened there.
19:46
Speaker 5: Just quickly, Miles, the president offering to turn the man
19:48
Speaker 5: over to the New York City Police Department. Mayor doesn't
19:52
Speaker 5: want this to happen?
19:53
Speaker 10: Yeah, so last night, Mayor Mamdani said he spent two
19:56
Speaker 10: hours speaking both with Mark Wayne Mullen and with the
19:59
Speaker 10: president specifically about this case. The mayor's contention is that
20:02
Speaker 10: this guy who ICE had attempted to arrest and shot
20:08
Speaker 10: and then arrested after was a person who had previously...
20:13
Speaker 10: been arrested, was on probation, and then there was an
20:16
Speaker 10: arrest for another charge. And the mayor's contention is that
20:19
Speaker 10: this is a person who should be able to have
20:20
Speaker 10: due process and wait it out while he goes through court.
20:24
Speaker 10: It is important to note that immigration detainers are just
20:28
Speaker 10: really a civil piece of paper. It's not a criminal...
20:32
Speaker 10: It can't actually be used to hold somebody indefinitely. We're
20:38
Speaker 10: going to hear from a judge later today about what
20:40
Speaker 10: she believes should happen in this case. He's already been
20:42
Speaker 10: moved out of New York State. The judge signed an
20:46
Speaker 10: order today that says that needs to be reversed. So
20:48
Speaker 10: we'll see what happens with his whereabouts. But he's right
20:51
Speaker 10: now in a place that not even his lawyers know.
20:53
Speaker 3: Wow.
20:54
Speaker 2: All right.
20:54
Speaker 4: Bloomberg's Miles Miller covering the story for us. Miles, thank
20:57
Speaker 4: you so much. Nice to have you here in D.C.
20:59
Speaker 2: With us.
21:01
Speaker 4: And as we consider that all of this is happening
21:03
Speaker 4: as President Trump is heading to New York himself today,
21:06
Speaker 4: not the city, though, upstate in Syracuse, we turn now
21:08
Speaker 4: to our political panel. Jeannie Shanzano is with us, a
21:11
Speaker 4: democracy visiting fellow at Harvard Kennedy School's Ash Center, Democratic
21:14
Speaker 4: analyst and a Bloomberg Politics contributor, alongside Republican strategist Lisa
21:18
Speaker 4: Kamusa Miller, who's founder of Friday Reporter Public Affairs. Welcome
21:22
Speaker 4: to you both. Lisa, as the president gets ready to
21:25
Speaker 4: make this trip upstate, does what happened in Manhattan happen?
21:29
Speaker 4: yesterday have any influence, you think, on his remarks or
21:33
Speaker 4: the mood of the rally as he rallies, particularly for
21:37
Speaker 4: someone who's trying to be governor of all of New
21:39
Speaker 4: York State and would be faced with these kind of
21:41
Speaker 4: issues if elected?
21:44
Speaker 12: I think it's going to be like catnip, Kayleigh. I
21:46
Speaker 12: think it's going to be hard for him not to
21:47
Speaker 12: say something about it. But he's also then going to
21:50
Speaker 12: focus on himself. The president is on the stump And
21:54
Speaker 12: he wants Republicans to be successful in this election. And
21:57
Speaker 12: so while he'll talk about that, he'll also talk about
21:59
Speaker 12: his victories and the wins that he sees as opportunities
22:04
Speaker 12: for more success in the elections in November. And so
22:08
Speaker 12: there'll be some mention of what's happening in New York,
22:10
Speaker 12: but there'll be a broader mention of how he's cracking
22:13
Speaker 12: down on immigration and how it's making things in New
22:16
Speaker 12: York state that much better. And that's why voters should
22:20
Speaker 12: support a Republican candidate for governor.
22:23
Speaker 5: Jeannie, Secretary Mullen said, quote, it is shameful we're giving
22:26
Speaker 5: this particular case so much attention when this was a thug, unquote.
22:31
Speaker 5: Is he right?
22:34
Speaker 13: What is actually shameful is that on a beautiful Thursday afternoon,
22:39
Speaker 13: and those of us with kids have all been there,
22:41
Speaker 13: you go to pick up your kids from school. There
22:44
Speaker 13: are parents, there are teachers, there are little boys and girls,
22:47
Speaker 13: babies coming out of school on a beautiful 4 p.m.
22:51
Speaker 13: in the afternoon in New York City. And you choose
22:54
Speaker 13: that time to randomly shoot seven bullets into a car
23:00
Speaker 13: where you admit you didn't see the five-year-old boy sitting
23:03
Speaker 13: in the back. There's a reason no law enforcement agency
23:07
Speaker 13: in this country shoots into a parked or moving vehicle.
23:11
Speaker 13: There was no need to shoot. You can peacefully shoot.
23:15
Speaker 13: take him into custody. And that is the problem here.
23:19
Speaker 13: And you know, the video cam that Kayleigh mentioned, I've
23:23
Speaker 13: watched it.
23:24
Speaker 6: Go take a look at it.
23:25
Speaker 13: And this is after the event. You have a man
23:29
Speaker 13: in a construction vest brandishing an AR-15 style rifle on
23:35
Speaker 13: the streets of New York while a little boy is
23:37
Speaker 13: sitting in a car as his father is laying out
23:40
Speaker 13: on the street bleeding out. So that is what is shameful.
23:44
Speaker 13: And you would think that Secretary Mullen would have learned
23:47
Speaker 13: from his predecessor's response to the Minneapolis ice shooting of
23:51
Speaker 13: two American citizens, shooting and killing, we should say, And
23:55
Speaker 13: yet he seems not to have done that. And that
23:58
Speaker 13: is what is actually shameful. What's also shameful is they've
24:01
Speaker 13: increased the numbers that these agents have to detain from
24:06
Speaker 13: 2,000 to 3,000 through the midterm. And we have 5,000
24:09
Speaker 13: more of these agents on the streets. of the streets
24:13
Speaker 13: of this city by the end of this year. That
24:15
Speaker 13: is a shameful policy. We are not a country where
24:18
Speaker 13: we send people who are in unmarked cars with construction
24:23
Speaker 13: vests and masks onto the street to shoot in the
24:26
Speaker 13: middle of a school afternoon into cars not knowing where
24:29
Speaker 13: children are.
24:30
Speaker 7: That's shameful.
24:33
Speaker 4: Well, and Lisa, as we think about the notion that
24:36
Speaker 4: Latino voters do seem to be breaking from Republicans more
24:39
Speaker 4: in this cycle than they did just two years ago
24:43
Speaker 4: when they swung toward Trump with ICE enforcement seen in
24:46
Speaker 4: large part as one of the reasons for that. Is
24:49
Speaker 4: this rising to the surface in the news cycle problematic
24:53
Speaker 4: for Republicans, vulnerable ones in particular in states like Florida
24:57
Speaker 4: or Texas, even if it didn't happen there?
25:00
Speaker 12: No doubt about it. There's no question. But the other thing, Kayleigh,
25:03
Speaker 12: is that will this suppress voters who likely would go
25:07
Speaker 12: to the polls and see this, see a polling place
25:11
Speaker 12: as a threat and a potential where this kind of
25:14
Speaker 12: activity could go on and decide not to cast their
25:17
Speaker 12: vote because of the risk it could present? That's the
25:21
Speaker 12: biggest disadvantage in what's happening here. I mean, for so many,
25:26
Speaker 12: Jeannie's one million percent on the nose about voting. how
25:30
Speaker 12: unbelievably abhorrent what happened in New York is. The difference is, though,
25:35
Speaker 12: that this actually, for the Republicans who see an opportunity.
25:40
Speaker 12: They are seeing this as a deterrent. It's unfortunate in
25:43
Speaker 12: this way because it will keep people from the polls,
25:47
Speaker 12: especially those Hispanic voters that are concerned about what potentially
25:51
Speaker 12: could happen. There's been plenty of news coverage about how
25:54
Speaker 12: there's going to be armed law enforcement and armed services
25:59
Speaker 12: at the polling places. And that's the other thing that
26:02
Speaker 12: I go back to again and again is that this
26:04
Speaker 12: particular election is is about trust. Do we trust that
26:07
Speaker 12: our vote is secure? Do we trust that we will
26:10
Speaker 12: be safe in the polling places? Those are the kinds
26:13
Speaker 12: of things that I'm especially concerned about, regardless of who
26:15
Speaker 12: the voters are. There is a big piece of this
26:18
Speaker 12: that will be voter suppression. And I think that that's
26:21
Speaker 12: something that we should continue to be keeping an eye on.
26:25
Speaker 5: These kind of headlines can move opinions, can activate voters. Jeannie,
26:31
Speaker 5: the timing here is something with 25 days left. left
26:34
Speaker 5: until the midterms. Does this have an echo when people
26:39
Speaker 5: hit the polls in November?
26:41
Speaker 13: It does, and we've seen that already. The other day
26:44
Speaker 13: we were talking about the polls of Hispanics in Texas
26:47
Speaker 13: and elsewhere around the country, a huge constituency that has
26:51
Speaker 13: helped Donald Trump assume the presidency twice now, moving away
26:55
Speaker 13: from him in droves. One of the big issues is immigration. They,
27:00
Speaker 13: like most Americans, want a sound immigration policy. They want
27:05
Speaker 13: the border closed. What they don't want are ICE agents
27:08
Speaker 13: who are untrained shooting and killing Americans and immigrants on
27:13
Speaker 13: the streets of our towns and cities. And it's happened
27:15
Speaker 13: all over the country.
27:17
Speaker 5: Well, I want to thank you both for venturing into
27:20
Speaker 5: a very controversial issue.
27:21
Speaker 7: With grace.
27:22
Speaker 5: And we appreciate both of your opinions. Jeannie Shanzano and
27:25
Speaker 5: Lisa Camuso-Miller, our great panel today.
27:27
Speaker 10: Thank you.
27:27
Speaker 5: Much more ahead on Bloomberg TV and radio. Stay with
27:30
Speaker 5: us on Balance of Power. We'll have much more coming
27:32
Speaker 5: up after this.
27:36
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27:55
Speaker 4: Markets, of course, trading with today's economic data in mind, perhaps,
28:00
Speaker 4: though it's interesting to see stocks on the rise and
28:02
Speaker 4: bond yields moving a bit higher in the face of
28:05
Speaker 4: sour consumer sentiment data, at least in the form of
28:08
Speaker 4: UMich consumer sentiment, which fell to a five-month low, a
28:11
Speaker 4: reading of 46.3 current conditions at an all-time low, down
28:16
Speaker 4: with a 44 handle in inflation expectations over the course
28:20
Speaker 4: of the longer term at 3.5%. It all speaks to
28:25
Speaker 4: a consumer that is feeling the economic pitch, even if
28:28
Speaker 4: the economic data, as the White House suggests, including the
28:31
Speaker 4: director of the National Economic Council, Kevin Hassett, still shows
28:35
Speaker 4: that things are hanging in there. And to get into
28:38
Speaker 4: why these readings are the way they are when the
28:41
Speaker 4: data is holding up, Danny Berger spoke to Joanne Hsu
28:45
Speaker 4: of the University of Michigan. She's their director of consumer
28:48
Speaker 4: surveys and gave Danny some more insight. Here's part of
28:50
Speaker 4: their conversation.
28:52
Speaker 2: We should read today's reading as essentially very little change
28:55
Speaker 2: from last month. The primary change that we do see
28:59
Speaker 2: is a pretty sharp decline in buying conditions for durables.
29:02
Speaker 2: And that's not surprisingly being driven by higher interest rates.
29:06
Speaker 2: We see buying conditions for all major purchases, not just durables,
29:09
Speaker 2: but cars and homes as well, coming down near historic
29:13
Speaker 2: lows on the basis, not just of high prices, which
29:16
Speaker 2: consumers have been unhappy about for quite some time, but
29:19
Speaker 2: now higher borrowing costs. At the same time, they're still
29:23
Speaker 2: expecting high prices to remain. You saw that inflation expectations
29:26
Speaker 2: ticked up. So consumers are still expecting pain on their
29:30
Speaker 2: pocketbooks to come.
29:31
Speaker 14: It's interesting because this report also comes just on the
29:34
Speaker 14: heels of earnings from Delta, where they said fuel prices
29:37
Speaker 14: are going up and they needed to cut their outlook,
29:39
Speaker 14: maybe unable to. to pass along those high prices. Joanne,
29:42
Speaker 14: it's a consumer that's been dealing with price fatigue. Is
29:44
Speaker 14: anything different this time around? Is the sentiment finally translating
29:49
Speaker 14: into consumers who are pushing back spending in different ways?
29:53
Speaker 2: Consumers have been telling us pretty loud and clear for
29:57
Speaker 2: the past few years that high prices really are quite
30:01
Speaker 2: a weight on their personal finances. Back in 2022, they
30:05
Speaker 2: had the strength of high, strong incomes and strong labor markets.
30:10
Speaker 2: Right now, there's support coming from stock markets, but only
30:12
Speaker 2: for wealthy consumers. For middle income, middle wealth, lower wealth
30:17
Speaker 2: consumers who don't own substantial stock, that stock market doesn't
30:20
Speaker 2: help them at all. The soaring AI trade doesn't help
30:23
Speaker 2: them at all. So many of them have been trying
30:25
Speaker 2: to make do. They've been trying to trade down in
30:27
Speaker 2: how they spend without necessarily reducing their total spend. But
30:32
Speaker 2: they're looking at further adjustments to their spending going forward.
30:35
Speaker 14: Where are you seeing those adjustments? I see some specific
30:38
Speaker 14: categories that you put out here, things like food, groceries,
30:41
Speaker 14: household durables. Some of this does feel like necessities, food
30:44
Speaker 14: and groceries, but just how widespread is some of that movement?
30:49
Speaker 2: The thing is, a lot of the items that I've seen,
30:52
Speaker 2: the most notable increases in prices have been necessities, have
30:56
Speaker 2: been non-discretionary goods. And so, especially with gas prices, if
31:01
Speaker 2: you drive to commute to work and you don't have
31:03
Speaker 2: any other options, there's not much you can do to
31:05
Speaker 2: adjust that. And so, what that means is that consumers
31:07
Speaker 2: are needing to adjust, make adjustments elsewhere or wherever they can.
31:12
Speaker 5: There you have it, straight from the source at the
31:14
Speaker 5: University of Michigan. the Director of Consumer Surveys. This, of course,
31:21
Speaker 5: was part of the discussion last evening on the campaign trail.
31:24
Speaker 5: It was debate night. And while some talk about the
31:26
Speaker 5: partisan nature of the University of Michigan survey, we certainly
31:30
Speaker 5: got the partisan take on the economy last evening. And
31:33
Speaker 5: we want to hear from both sides. This is Abdul El-Sayed,
31:36
Speaker 5: who was in conversation, if you will, in a meeting
31:39
Speaker 5: in Michigan with Mike Rogers. Mike Collins, also the Republican
31:43
Speaker 5: congressman who was in a debate with John Ossoff, the
31:46
Speaker 5: the Democratic senator. We'll hear from all of them ahead
31:49
Speaker 5: of our conversation with Stephen Moore. Let's play it back
31:51
Speaker 5: last evening because we were watching so you didn't have to.
31:54
Speaker 15: $ 80, $ 80 to fill up your gas tank. And yes,
31:58
Speaker 15: I would support pausing the federal gas tax, but there
32:01
Speaker 15: is one thing that is actually causing this. It's the
32:04
Speaker 15: war in Iran, a war that has been cheer-led by
32:06
Speaker 15: my opponents since the beginning.
32:08
Speaker 16: So I've called for a diesel rebate, number one, and
32:12
Speaker 16: a pause on exports of diesel to give a temporary break.
32:16
Speaker 16: We can resume that once the war comes to an end.
32:19
Speaker 16: I do believe it's going to come to an end.
32:21
Speaker 16: We need it to come to an end.
32:23
Speaker 7: My opponent voted for those Bidenomics that caused this historic inflation,
32:28
Speaker 7: not just on gas, and gas is too high, and
32:29
Speaker 7: we're bringing that down, but on everything that you purchase
32:32
Speaker 7: out there.
32:33
Speaker 17: These tariffs are crushing our state. And we'll repeal those tariffs.
32:38
Speaker 17: And I'd like to hear the congressman explain why he
32:41
Speaker 17: voted for them over and over and over again. People
32:45
Speaker 17: will freeze to death this winter because they can't afford
32:48
Speaker 17: to heat their home.
32:49
Speaker 1: I have been the leading proponent of the low-income home
32:54
Speaker 1: heating program in Congress.
32:58
Speaker 5: We had the voices of Troy Jackson and Susan Collins
33:01
Speaker 5: there at the end. With 25 days left, This is
33:05
Speaker 5: the discourse across the country. And a pleasure to have
33:08
Speaker 5: Stephen Moore back with us as part of our conversation.
33:11
Speaker 5: The chairman, co-founder of Unleash Prosperity, former senior economic advisor
33:15
Speaker 5: to President Trump in the first term. Stephen, it's great
33:18
Speaker 5: to have you back. With 25 days left, everyone's trying
33:22
Speaker 5: to come up with an idea or pin the blame
33:24
Speaker 5: on somebody. That's the way it goes in the final
33:26
Speaker 5: throes of a campaign. How would you describe the state
33:29
Speaker 5: of this economy with gas prices, oil prices, where they are, diesel,
33:33
Speaker 5: where it is as voters hit the polls in November?
33:37
Speaker 7: Well, great to be with you there at Bloomberg. Thank
33:38
Speaker 7: you for having me. I was listening to your previous
33:41
Speaker 7: conversation with Senator Jeannie Shaheen and so on. And I
33:45
Speaker 7: just wanted to make one quick point, which is, you know,
33:49
Speaker 7: 24 days, right? That's how many we have. That's a
33:51
Speaker 7: lifetime in politics. I bet if you ask most people
33:54
Speaker 7: on the street, did you know there's an election coming
33:55
Speaker 7: up in three or four weeks, they probably don't even
33:57
Speaker 7: know it. So a lot of Americans haven't even really
34:00
Speaker 7: focused that much yet on the elections. And a lot
34:02
Speaker 7: of people make up their minds in the last few
34:05
Speaker 7: days or last few weeks. But this is the crucial period.
34:08
Speaker 7: And there's no question Republicans are behind the eight ball
34:10
Speaker 7: right now, undoubtedly. But it is a strong economy. It's
34:15
Speaker 7: a very good economy. I wouldn't say it's great, but
34:18
Speaker 7: it's very strong. in terms of just how industry is doing.
34:21
Speaker 7: We're seeing a construction boom. We're seeing a manufacturing boom.
34:25
Speaker 7: We have fewer Americans signed up for unemployment insurance benefits
34:28
Speaker 7: than any time in American history. That's pretty amazing. We
34:31
Speaker 7: have more jobs than people to fill them. That's a
34:34
Speaker 7: good problem to have. One interesting thing, and I did
34:38
Speaker 7: listen to the interview with the woman from the Michigan survey.
34:45
Speaker 7: In economics, we have a We have a saying called
34:49
Speaker 7: revealed preference. In other words, you don't have to ask
34:52
Speaker 7: someone at the University of Michigan what consumers feel. All
34:55
Speaker 7: you have to do is look at what they're doing.
34:57
Speaker 7: And so there was an interesting chart. I don't know
34:59
Speaker 7: if you saw it on the front page of The
35:01
Speaker 7: Wall Street Journal. I think it was earlier this week
35:02
Speaker 7: that showed. Consumer sentiment way down and consumer spending way up.
35:07
Speaker 7: And so the revealed preference, even though consumers say they're
35:10
Speaker 7: being squeezed, they're still spending a lot. In fact, consumer
35:13
Speaker 7: spending is one of the reasons that Federal Reserve Board
35:16
Speaker 7: thinks we might have 4 percent growth in this quarter. So, yes,
35:19
Speaker 7: the Republicans are in a hole, but there's a lot
35:22
Speaker 7: of time to make that up. And they have to
35:23
Speaker 7: really make the case for the strong economy because, frankly,
35:26
Speaker 7: the media won't do it.
35:29
Speaker 4: Well, when you talk about the strength of the economy, Stephen,
35:31
Speaker 4: and it's great to have you, and we appreciate you
35:33
Speaker 4: listening to our conversations with Joanne Hsu and Jeannie Shanzano
35:37
Speaker 4: and Lisa Kamusa-Miller, our political panel. When you talk about
35:40
Speaker 4: the strength of the economy and you cite manufacturing and
35:43
Speaker 4: the like specifically, is there breadth to that strength or
35:46
Speaker 4: is in large part this economy right now riding on
35:49
Speaker 4: a boom of artificial intelligence and associated infrastructure?
35:53
Speaker 7: Great, that's a great question. I guess, yes, but that's become,
35:58
Speaker 7: if you look, for example, at the numbers on employment,
36:02
Speaker 7: we're seeing a big construction boom and you're exactly right.
36:06
Speaker 7: The vast majority of those jobs are related to technology sector,
36:10
Speaker 7: including data centers. I don't understand why people are against
36:12
Speaker 7: data centers when they're huge. In fact, the unions are
36:16
Speaker 7: very strongly in favor of more data centers because that's
36:19
Speaker 7: where a lot of the jobs are coming from. So listen,
36:24
Speaker 7: I know from my own family members that people are
36:26
Speaker 7: angry about prices. I'm angry about. I can't believe how
36:29
Speaker 7: much things cost. This is an inflation problem that's been
36:33
Speaker 7: going on for five or six years now. Look, 80
36:36
Speaker 7: percent of it happened under Biden. But people are angry.
36:38
Speaker 7: The prices are still so high and they're still rising.
36:41
Speaker 7: And it is true. This is all being driven by
36:43
Speaker 7: the oil price, because, as you guys mentioned, every time
36:47
Speaker 7: the oil price goes up, that filters into the price
36:50
Speaker 7: of just about everything else.
36:53
Speaker 5: Only Stephen Moore could smile when he's saying he's angry.
36:55
Speaker 5: There's just something, I don't know, contagious about.
36:57
Speaker 3: It, Stephen.
36:59
Speaker 7: We just saw a report.
37:01
Speaker 5: God love you.
37:02
Speaker 10: OK, he's bringing the anger.
37:04
Speaker 5: Reuters feeling that anger is reporting on the president's moves here.
37:10
Speaker 5: on diesel i'm only i only know what i'm reading
37:12
Speaker 5: to you off of twitter this is jared renshaw i'm
37:16
Speaker 5: told the president will issue a directive ordering officials to
37:18
Speaker 5: rein in diesel costs there are three industry sources uh
37:22
Speaker 5: pushing this story pushing department heads to bypass state and
37:26
Speaker 5: local regulations blocking energy production how would that work and
37:32
Speaker 5: would it actually lower prices Well, I think I don't
37:36
Speaker 5: know a whole.
37:36
Speaker 7: Lot about that. I don't know exactly what the president
37:39
Speaker 7: has in mind there.
37:39
Speaker 5: No, I'm blindsiding you with this.
37:41
Speaker 7: No, but I would say that, so for example, you
37:44
Speaker 7: know what state has by far the highest diesel and
37:47
Speaker 7: gas prices, right?
37:49
Speaker 5: You're going to say California.
37:51
Speaker 7: Yeah, California. They're way, way, way above any other state.
37:54
Speaker 7: In fact, people in California pay at least $ 1. 25 to
37:58
Speaker 7: $ 1. 50 more than people in other states. And what that's
38:01
Speaker 7: telling you is there's something about the energy policies in California.
38:05
Speaker 7: By the way, New York and New Jersey are very
38:06
Speaker 7: high priced, too. On the infrastructure issue, one of the
38:11
Speaker 7: most important things we have to do, now this isn't
38:13
Speaker 7: going to solve the problem of high gas prices now,
38:16
Speaker 7: but did you know we have not built a refinery
38:18
Speaker 7: in this country for over 40 years? We need refineries.
38:22
Speaker 7: We need pipelines. We need to have LNG terminals. We're
38:25
Speaker 7: producing more energy in the United States, oil and gas,
38:28
Speaker 7: than any other time in American history. And yet the
38:32
Speaker 7: infrastructure to move along that oil and through pipelines and
38:35
Speaker 7: to get it refined just hasn't kept pace. And that's
38:39
Speaker 7: in part because many, especially blue states, have rules that
38:43
Speaker 7: make it very difficult to build that infrastructure.
38:48
Speaker 4: Well, even if there is a move to ease permitting
38:51
Speaker 4: and regulations and build that infrastructure, it's not going to
38:54
Speaker 4: be a near-term solve to these prices. And that's something
38:57
Speaker 4: that the Federal Reserve has to consider. Obviously, its ability
39:01
Speaker 4: to respond to a supply-side challenge is limited, but we
39:04
Speaker 4: saw one right hike in the expectation, as we could
39:06
Speaker 4: very well see another by the end of the year. Stephen,
39:09
Speaker 4: do you think it would be a mistake for the
39:12
Speaker 4: Fed to hike again, given that so much of this
39:14
Speaker 4: is being driven by the supply side? Or is it
39:17
Speaker 4: necessary that they do so for fear of not only
39:21
Speaker 4: actual recognized inflation, but inflation expectations to get back to
39:25
Speaker 4: the sentiment and consumer expectations data we started with could
39:28
Speaker 4: run away from them?
39:29
Speaker 7: You. I do think Kevin Wirtz did the right thing
39:34
Speaker 7: in raising the rates a quarter point at the last
39:36
Speaker 7: Fed meeting because, as you just said, we're running at 3.5%
39:39
Speaker 7: inflation right now. And that is driven by the energy sector.
39:43
Speaker 7: But we're going to have to see prices fall in
39:45
Speaker 7: other areas to bring that inflation rate down to back
39:49
Speaker 7: below 2%. By the way, I'd like to see them
39:51
Speaker 7: in for 1% given how much prices have risen. As
39:54
Speaker 7: to whether the Fed should be raising rates again, I mean,
39:57
Speaker 7: I'm not in a good position to really say. I
40:00
Speaker 7: don't know what the data, you know, the Fed has
40:02
Speaker 7: access to a lot of the data that me mortals
40:05
Speaker 7: like us don't necessarily have. So I can't really say.
40:09
Speaker 7: But I do think Kevin Warsh, I will say this
40:11
Speaker 7: to your viewers and listeners, Kevin Warsh is an inflation hawk.
40:15
Speaker 7: And he is quite correctly focused on one thing, bringing
40:18
Speaker 7: inflation back down by whatever means possible.
40:23
Speaker 5: I don't know if you have a take, Stephen, on
40:26
Speaker 5: this Lisa Cook story, but this is a doozy today.
40:28
Speaker 5: The White House is going to be launching an investigative committee,
40:32
Speaker 5: as it's being referred to. There'll be a hearing at
40:35
Speaker 5: the White House in November. It's unclear what authority this
40:39
Speaker 5: would be on. Should Lisa Cook show up for that hearing?
40:43
Speaker 7: You know, as you probably both know, I was nominated
40:48
Speaker 7: to be on the Federal Reserve Board by Donald Trump
40:50
Speaker 7: in the first term. I did not make it through
40:52
Speaker 7: the process, but, you know, I went through it. Look,
40:56
Speaker 7: if Lisa Cook did what she is alleged to have
41:00
Speaker 7: done with respect to the mortgage fraud, she should be
41:03
Speaker 7: off the Federal Reserve Board. I think everybody would agree
41:05
Speaker 7: with that. I mean, the mortgage fraud is what created
41:09
Speaker 7: one of the greatest financial panics in American history. And
41:12
Speaker 7: if she was in any way... Part of that, I
41:16
Speaker 7: just don't see the reason why she should be sitting
41:18
Speaker 7: on the Federal Reserve Board. Now, I don't know if
41:19
Speaker 7: she's I don't know the facts of the case. So, yes,
41:23
Speaker 7: I think it should be investigated. And I think everybody
41:25
Speaker 7: should want to get to.
41:26
Speaker 8: The bottom of it.
41:28
Speaker 7: All right.
41:28
Speaker 4: Of course, she denies those allegations. Stephen Moore, it's great
41:31
Speaker 4: to have you chair and co-founder of Unleash Prosperity and
41:34
Speaker 4: former senior economic advisor to President Trump. We appreciate you
41:37
Speaker 4: joining us on the early edition of Balance of Power.
41:42
Speaker 5: Thanks for listening to the Balance of Power podcast. Make
41:45
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41:48
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41:51
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41:55
Speaker 5: at Bloomberg.com.