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- [00:00]
Public.com Announcer
Support for the show comes from public on public. You can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index with AI. It all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year. You can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are completely customizable and based on your thesis, not someone else's. Go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market paid for by Public.
- [00:50]
Joe
Investing Brokerage Services by Open to the Public Investing Inc.
- [00:53]
Public.com Announcer
Member FINRA and SIPC Advisory Services by Public Advisors llc. SEC Registered Advisor Generated Assets is an interactive analysis tool.
- [01:01]
Joe
Output is for informational purposes only and.
- [01:04]
Public.com Announcer
Is not an investment recommendation or advice.
- [01:06]
Joe
Complete Disclosures available at public.comDisclosures.
- [01:12]
Jeannie Shanzano
Bloomberg Audio Studios Podcasts Radio News. You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and 5pm Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app Listen on Demand. Wherever you get your podcast, podcasts or watch us live on YouTube.
- [01:34]
Joe
President Trump is going to be speaking about an hour from now before the Economic Club of Detroit. He's already there. In fact, part of his day includes touring a Ford factory as he tries to seize once again on the issue of affordability. This is not a new one for this White House. In fact, this is the latest stop on what many are calling the Affordability Tour, which the President kicked off in Pennsylvania at the end of last year. He also had a primetime address at the end of last year, same issue, trying to deal with prices. And today, of course, it's coming against the backdrop of a CPI report that showed core inflation up less than expected in December. That's the upshot for investors today, even if they are worried about what the banks are telling us. The President remembering that primetime address. It was the 18th of December, trying to trump the White House policies on prices. Siri was let's listen. We're bringing our economy back from the brink of ruin. I am bringing those high prices down and bringing them down very fast. You will see this in the new year. I will announce some of the most aggressive housing reform plans in American history. And of course he did just days ago announce his ban or at least his call for a ban on institutional investors buying single family homes. He's also made news with capping credit card rates, among other issues that we're likely to hear about. And by the way, Bloomberg radio is going to be taking that Bloomberg TV and radio the speech in full coming up, if he's on time, of course, at the top of the hour. Let's start, though, with Bloomberg's Tyler Kendall. She's at the White House right now where the conversation is about affordability on this day. The president will be back before the day is over. Tyler, what's going to be the message when we see him in Detroit?
- [03:18]
Tyler Kendall
Yeah, hey, Joe. Well, we are expecting President Trump to try to refocus the narrative around his economic policies with this trip to a critical battleground state today. And he is already making headlines on his first stop while touring a Ford manufacturing plant. He's talking to reporters as we speak. One of the headlines crossing is that he's saying that we can't expect a Federal Reserve chair pick within the next few weeks. Not necessarily news that's in line with our prior expectations that that decision could come later this month. But it does go to show how the economy is really front and center for President Trump today as he continues on later this afternoon to address the Detroit Economic Club. And this is a place, Joe, I think it's worth mentioning, where President Trump has made significant inroads in the state. But it is also a state that has a mixed economic picture. A new poll released by the Detroit News earlier today finds that two thirds of likely Michigan voters feel costs have gone up for them over the past year. And that is really putting the pressure on this White House that has been playing defense over the issue of affordability. And that is why we are expecting President Trump to really tout some of these proposals that fall in perhaps the more populist camp when it comes to his ideas, even if they might not all have the congressional wherewithal at the moment to get through, including, as you just outlined, the proposal to cap interest rates on credit cards or ban institutional investors from buying single family homes. This is President Trump Trump's third domestic visit since early December in what we were expecting to be this affordability tour and comes after a week where geopolitics has really been in the spotlight. Joe, the White House press secretary Caroline Levitt, previewed two reporters on Air Force One on the way over to Michigan that we can also expect President Trump to talk about Iran. One of the headlines that's just crossing is that he is telling reporters there with him in Michigan that it is a good idea if Americans evacuate from Iran. As we know, this White House is mulling potential action in the country.
- [05:14]
Joe
Yeah, I'm glad you mentioned that, Tyler. The president, speaking as he makes his way toward the speech in Detroit, saying that Steve Witkoff, his special envoy, met with Iran's exiled crown prince over the weekend. Axios is now adding that headline to his commentary on evacuating Iran. We don't have any other thoughts of imminent action, do we? The president was supposed to be briefed today on options. Has he made up his mind?
- [05:42]
Tyler Kendall
Well, at this point, the White House hasn't put out whether or not he was. A senior administration official did confirm over the weekend that President Trump was presented with an array of military options for potential strikes and that he was seriously considering authorizing an attack in the country after he has openly backed the protesters. But at the same time, the White House had been maintaining that diplomacy was still on the table, confirming that Iran had asked the US For a direct meeting. But then, Joe, we got this post from President Trump earlier today on Truth Social where he said that he was calling off completely all meetings between the US And Iran. So we are drumbeating potentially here to an announcement or a decision from the administration. But we know that there are an array of options on the table, from direct military strikes to cyber attacks to, of course, keeping those channels of communication open.
- [06:36]
Joe
The president on Truth Social writing to Iranian patriots, he says, keep protesting. Take over your institutions. Tyler, thank you so much. Tyler Kendall on the North Lawn of the White House. Save the names of the killers and abusers. Donald Trump writes, they will pay a big price. I have canceled all meetings with Iranian officials until the senseless killing of protesters stops. Help, he says, is on the way. Mega miga. I guess we're making Iran great again. We'll see what the congressman thinks about this. Raja Krishnamoorthy, the Democrat from Illinois, is with us right now on Bloomberg TV and Radio. And, Congressman, it's good to have you back. I hope the year is starting out well for you. Are we about to go to war with Iran?
- [07:16]
Congressman Raja Krishnamoorthy
I don't know. I'm hopeful that we are not. I hope that cooler heads prevail. Right now, however, the protesters in Iran are showing incredible bravery and they are basically, unfortunately, being met with unspeakable violence. There are estimates that thousands of thousands of Iranians have been murdered by their government. And, you know, we have to speak with one international voice in support of them and a free and democratic Iran Yeah.
- [07:50]
Joe
President threatening tariffs on those who do business with Iran. Congressman, your thoughts on what that means for China and for US Trade with China, knowing that you were, of course, the top Democrat on the China Select Committee. Where's the President going with this?
- [08:07]
Congressman Raja Krishnamoorthy
Well, I think that these types of sanctions seem to make sense to me. You know, at this point, the Iranian regime is basically, in my humble opinion, you know, basically using their oil profits to continue to militarize, to deprive their people their freedoms, but also to continue with, you know, malicious activities around the Middle East. We've seen this time and again. And I think that at this point, again, I'm hopeful for a diplomatic solution, but the violence needs to come to a halt. Right now.
- [08:50]
Joe
We'Re seeing some terrible numbers.
- [08:52]
Congressman Raja Krishnamoorthy
Congressman, and I think you might have.
- [08:55]
Joe
2000 killed according to a rights group. Yes, we sure did. So with all of this said, is decapitation of the regime a realistic prospect right now? Does that need to happen?
- [09:10]
Congressman Raja Krishnamoorthy
Well, you're talking about the Supreme Leader. I mean, there's a President, but really the President reports to the Supreme Leader. I don't think that that is something that, I don't see that in the cards right now. I think that. But at this point, again, my hope is that we, working with our international partners, whether it's the Chinese or others who have leverage with the Iranians, are going to get them to stop the violence that's being committed the atrocities. And I think that again, the ccp, the Chinese Communist Party, has a great amount of leverage with the Iranians because they purchase so much Iranian oil. But they also have other security ties with them. And if they are a responsible international actor, then they should do whatever it takes to use their leverage in a responsible manner in Iran.
- [10:09]
Joe
Well, we can't talk about all of this without bringing up Venezuela. Congressman, you introduced the no Occupation of Venezuela act, the NOVA act, as you say, to ban taxpayer dollars from being spent to occupy, run or subsidize what you call oil exploitation in Venezuela. Without military boots on the ground, Congressman, how possibly could we secure a place like Venezuela that would make it safe for oil companies to do business there?
- [10:38]
Congressman Raja Krishnamoorthy
I don't know. I think that the Trump administration doesn't know either exactly what they're doing in Venezuela. There doesn't seem to be a thought out plan for the day after having taken Maduro out of power. Now, I think that what we are doing is two things. One, in Congress, we need to pass this war powers resolution that would prevent our armed forces from being deployed in Venezuela. Without the consent of the American people through Congress. And then the second is no taxpayer dollars should be used to run or occupy Venezuela. My biggest concern is that as Trump, you know, meets with these oil executives in the White House and they say, well, we can't do this without this and that and maybe other incentives that he basically asked American taxpayers to fund those incentives. And so this seems like a very timely piece of legislation, one that me and Joaquin Castro introduced, and I'm going to continue to pursue it.
- [11:39]
Joe
Is the bank shot on China worth all of this? Congressman, China was Venezuela's biggest buyer of oil. Is this good for America?
- [11:49]
Congressman Raja Krishnamoorthy
Well, I think that in my humble opinion, the American people don't want a military adventure anywhere in the world after Iraq and Afghanistan. They don't want another Iraq style occupation of Venezuela. And if the Trump administration disagrees, they should come to Congress. Donald Trump should come to Congress, defend his position, and then try to get the support of the American people on his side before he commit either American lives or American treasure to this, in my humble opinion, reckless military adventure in Venezuela.
- [12:27]
Joe
Well, he says it's going to bring oil prices down and help secure the country. And while we talk about prices, I'm curious your thoughts on the president's affordability speech today. He's going to be talking, Congressman, about an hour from now in Detroit, and he's been calling for a lot of ideas that have been very closely associated with your party. Capping credit card fees would be one of them. Banning institutional buyers of single family homes would be another. We spoke with Senator Elizabeth Warren last evening. She said she got a phone call from Donald Trump suggesting they work together on the issue of affordability. Is this what brings Democrats and Republicans together?
- [13:05]
Congressman Raja Krishnamoorthy
I'm all ears. I'm all ears. Whatever we can do to work together to actually bring down the costs of American staple goods or services, whether it's whether it's child care or health care or whether it's education or groceries or rent. Let's do it. But let me just point out one thing on health care. Allowing those ACA tax credits to expire has now caused premiums to skyrocket by, according to the Kaiser Family Foundation, 114% for 22 million Americans, 4 million of whom are going to lose their health insurance. So one good place to start would be Donald Trump instructing Senate Republicans to take up the legislation we passed in the House to extend ACA tax credits for three years so that we can actually bring down the cost of health care for millions of Americans. That would be A good place to start.
- [14:00]
Joe
Okay. What if it's a slightly different version, like the Moreno bill that we're seeing come to form in the Senate? Congressman, it would not be a clean extension, and it wouldn't be three years, it would be two, along with some eligibility requirements and an income cap. Is that something that you could see becoming law?
- [14:17]
Congressman Raja Krishnamoorthy
Possibly. I mean, let's talk. Let's have a negotiation. I would, absolutely. I think, you know, having some kind of restriction on abortion as part of any kind of extension of the aca, in my opinion, is a deal breaker. But apart from that, we can talk about other parameters in the aca and let's get it done asap, because I have constituents who can no longer afford their health care. I have one person, Shadine Butchart, who has ALS. She was paying $1,100 per month for her health insurance. It's now skyrocketed past $2,200 per month, which consumes the entirety of her husband's Social Security check. That is wrong. That's absolutely wrong. And we've got to do something about it. That's why we should act expeditiously to extend these ACA tax credits.
- [15:13]
Joe
You'd also have to extend the window for open enrollment. Right. There's talk, I think, of March 15th. Would that be enough to get people who figured there was no opportunity for them to get back on the rolls?
- [15:26]
Congressman Raja Krishnamoorthy
I'm open to that. Whatever it takes to give people an opportunity to. To kind of sign up again. Because you're right, some people did sign up in the hopes that the tax credits would get extended. And other people just said it's just too expensive, and they just failed to sign up. And so let's give them a chance to come back. And let's make sure, again, if we're really serious about this affordability issue, it starts with health care. And let's give people a chance to once again be able to access health insurance.
- [16:00]
Joe
I know that nobody wants a government shutdown, at least for the most part. I take lawmakers at their words on both sides of the aisle on that Congressman. But there are real questions. Even as the House and Senate make progress on a series of minibuses, there are questions about a funding deadline at the end of the month, particularly after the fatal ICE shooting in Minneapolis, and how that may hang up DHS funding, what do you see from your perch on the Hill? Is a shutdown possible?
- [16:26]
Congressman Raja Krishnamoorthy
Well, I think that with regard to dhs, you may have a situation where, you know, if Republicans are dug in that there should be absolutely no reforms whatsoever, that ICE should be able to act with impunity as they have. I don't see a lot of Democrats joining onto that because, you know, in Chicago, which has been ground zero for ICE operations, we're talking about, you know, thousands of people who were affected negatively. I actually visited the Broadview Detention center and I toured it and I found out that many people are targeted not based on their having a criminal record, okay, but they might just be collaterally in the vicinity of an ICE operation. And so they are basically removed, despite the fact that Donald Trump promised that he was only targeting the worst of the worst. Instead, he's disrupted communities, torn families apart. And that is wrong. And I think that the American people are on the same page as Democrats with regard to that sentiment.
- [17:35]
Joe
Well, this DHF's funding issue could be a real problem, it sounds like as we approach the deadline. Congressman Raja Krishnamoorthy, thank you as always, the Democrat from Illinois with us live only on Bloomberg TV and Radio. Stay with us on Balance of Power. We'll have much more coming up after this.
- [17:54]
Public.com Announcer
Support for the show comes from public on public you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index with AI. It all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year. You can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are completely customizable and based on your thesis, not someone else's. Go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market paid for by Public.
- [18:45]
Joe
Investing Brokerage Services by Open to the Public Investing Inc.
- [18:48]
Public.com Announcer
Member FINRA and SIPC Advisory Services by Public Advisors llc. SEC Registered Advisor. Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice.
- [19:00]
Joe
Complete disclosures available@public.com disclosures.
- [19:04]
Jeannie Shanzano
You're listening to the Bloomberg Balance of Power podcast.
- [19:07]
Joe
Catch us live weekdays at noon and.
- [19:09]
Jeannie Shanzano
5Pm Eastern on Apple CarPlay and Android Aut, the Bloomberg Business app.
- [19:14]
Senator Elizabeth Warren
You can also listen live on Amazon.
- [19:16]
Joe
Alexa from our flagship New York station.
- [19:19]
Jeannie Shanzano
Just say Alexa.
- [19:20]
Joe
Play Bloomberg 11:30 live from Washington. It's great to see you. Thanks for being here on Bloomberg Radio. Unless you're streaming us live on YouTube right now or watching us on Bloomberg Originals. We'll welcome our global television audience to the conversation in just about a half hour's time. Big news from industry dive and the restaurant dive. Taco Bell is refreshing the value menu, adding five new offerings, I understand, following a test in India and the Indianapolis area last year. Easy for me to say. The chains lux value menu launching later this month will feature 10 items priced at $3 or less, replacing Taco Bell's cravings. Value menu. Now, say all you want about Donald Trump and tacos, but there's a reason why this is happening. When we listen to the conference calls on these restaurant companies or any consumer facing company right now, prices remain a big story. Affordability. This is why the president is in Detroit today. And he's going to be talking in about 90 minutes in front of the Economic club about the big issue, affordability, the one that caused him to pick up the phone yesterday and call Elizabeth Warren. We actually spoke with the senator from Massachusetts following her speech at the National Press Club, talked about the future of the Democratic Party. Populism, yes, affordability. And when she came out after criticizing the president, he called her. When she joined us on the late edition of Balance of Power yesterday, I had to start by asking, what did you guys talk about? Let's listen.
- [20:55]
Senator Elizabeth Warren
Well, the speech had been about how Democrats need to get out there and fight to lower costs for American families. I pointed out that Donald Trump had run for office and every day for a year, he promised that on day one he would lower costs for American families. He gets elected and said the reason he got elected was because he promised on day one to lower costs. It's been a year now and the cost of groceries is up, the cost of health care is up, the cost of housing is up, the cost of utilities is up, all because of Donald Trump and Republican policies. And I said it's time both to hold Donald Trump accountable and for Democrats to get in there and put out our proposals to lower costs and to show that we're willing to fight for them. And after that speech was over, Donald Trump gave me a call and we talked about things we could do to lower costs for American families. That is my job. That is the job of Democrats. That is the job of Congress and the president of the United States.
- [21:58]
Joe
Well, wait a minute here. So he called you in the spirit of cooperation. Senator, I was, I guess I just assumed he was not a fan of your speech. Is this the same Donald Trump who wants to ban investors, institutional Investors from buying single family homes to stop defense contractors from issuing dividends and stock buybacks wants to start lowering interest rates. A lot of these are pages out of your book, right? Are you guys going to collaborate on these issues?
- [22:27]
Senator Elizabeth Warren
Same, same Donald Trump. In fact, we specifically talked about putting a cap on interest rates on credit cards and about getting this road to housing bill that has passed the Senate unanimously to build up more housing supply and bring down costs. It's hung up by Republicans over in the House. Democrats are all ready. We have voted for it. We're ready to go. But the Republicans in the House are holding it up. And Donald Trump just hasn't delivered on either one of those. So my view is no more talk. Let's actually deliver for American families. That's our job. So, Senator Warren, you sound like you had this conversation with him. There are some similar issues here. Would you be willing to work with the president, work together to handle affordability for the American people, or do you fight back with everything going on right now in the midterms right around the corner? Absolutely. My job is to be here to fight to lower costs for American families. And that is what all of my Democratic colleagues are here for. The speech I was giving today was about how we best do that. Do we decide that we're going to lay out our agenda and try to soften it up in order not to offend any billionaires or corporate CEOs? Are we actually going to get in this fight full throated all the way and show with concrete proposals that we are willing to make a difference in people's lives? We are willing to fight to unrig an economic system that keeps working better and better for the billionaires, but worse and worse for everyone else. I believe that Democrats must, must, must win in November 2024. And the way we do that is we build real credibility on the issue of lowering costs for American families. Senator, I'm curious, in this conversation with President Trump, did the investigation into Fed Chair Powell come up? So look, I'm not going to talk about details in a conversation, but I just want to say it was all about costs, about how we reduce costs for American families. And I've had proposals on the table for a very long time. Donald Trump has talked about proposals that would reduce costs, but so far hadn't lifted a finger to deliver. So for me, it's put up time. You really want to make some change? Donald Trump could help make some change right now. And that's what I want to see us do.
- [25:08]
Joe
Remarkable. Part of our Conversation. And thanks to our Texas bureau chief, Julie Fine, who is in on that interview as well. Are we serious? They're really going to be working together, huh? She's still criticizing him in that conversation. This is a fascinating moment that we're in, but I'm glad that we got to the Jay Powell stuff. That was our big screamer of a story yesterday.
- [25:29]
Public.com Announcer
Of course.
- [25:29]
Joe
Right. The probe into Powell criminal investigation and not based on his decisions on interest rates. It was about his testimony in front of Congress about the rehab, the updates to the Fed headquarters, talking about a renovation project here. And we did bring this up not only with Elizabeth Warren, but with Senator Roger Marshall, Republican, to get his take on exactly what the heck is going on and whether Jay Powell could end up being a criminal. Here's the senator from Kansas.
- [25:59]
Senator Roger Marshall
Did he mislead Congress? I don't know. Did he break the law? I don't know. But, but I think there's other important issues we need to be addressing as well.
- [26:07]
Joe
Well, I understand that and I just want to be clear and fair here, Senator. When I refer to the administration, I'm referring to the Department of Justice as well. Even if the president didn't know about this, is this a bridge too far to threaten criminal charges against an outgoing Fed chair?
- [26:23]
Senator Roger Marshall
Well, look, if anybody understands lawfare, it would be President Trump and his administration. That how political lawfare has been used against him. And I think it's important to point out that Jerome Powell is the one that made this all, has made this whole relationship political. And Trump, 45, he raised interest rates sooner than they needed to be during, during COVID he was too late, too slow. Too slow. Jerome Powell, in responding to inflation, he said it would be temporary. Just a month before the presidential election, he dropped interest rates a half a percent. And now he refuses to maybe to bring. He's been slow to reflect, respond and bring those interest rates down as well. So I feel like after eight years, Jerome Powell has made this political. He's functioning at an emotional level right now on this, and I'm looking forward to a transition in that position.
- [27:09]
Senator Elizabeth Warren
Senator, your fellow Senator Thom Tillis saying right now that he would oppose any nominee with all of this going on. Lisa Murzkowski agreeing with him today. Do you agree with that?
- [27:21]
Senator Roger Marshall
You know, I don't, but May 15th is when his due date is, so to, so to speak, speak. You know, I'm an obstetrician, so I work with due dates. So his due date is May 15th. I think. I think we'll have this issue resolved between now and then. And again I go back to let's wait and listen to the President weigh in on this particular discussion.
- [27:41]
Joe
Well, you know there's a question about who is going to replace Chair Powell, of course. And I'm wondering to what extent you think this colors that conversation. If the President's pick, whether it's one of the Kevins or somebody else, if he happens to surprise us Senator, is seen as being too close to this administration, too politically motivated. Because this in many eyes boils down to a story about Fed independence.
- [28:05]
Senator Roger Marshall
Well, I think the President is going to choose one that is going to do the best for the American economy. And the President happens to believe, and I agree, that we need to lower interest rates. I think we need to take a look at this quantitative easing that's going on. By the way, I'm very happy with the President working with Fannie Mae and Fannie Mac and buying back those bonds to bring interest rates down and affect and impact the cost of housing right now. So there's lots of great things out there the President is doing to impact the true problems and that would be the cost of housing thanks to four years of Joe Biden's inflation that led to 50% increase in housing costs.
- [28:41]
Senator Elizabeth Warren
I want to turn to the credit card cap that President Trump has introduced. I know that you are supporting it right now. The question is how do you get that through Congress if right now that's up to the states?
- [28:53]
Senator Roger Marshall
Well, I think that, that, that'll be a challenge for us, but that's why I came here. Look, I think it's important to realize that American families are paying $300 a month between paying interest on their credit card as well as the swipe fees that banks are charging, 20 to 30% interest that Americans are paying seven times more for swipe fees than the European Union is. So I think it's, I think that what we've seen here is this all ago monopoly between two credit cards and a handful of banks. So I think that this will lower the cost of gas and groceries by 1 or 2%. And when the American people see that, they'll get behind it and push their members of Congress to pass this. This could be one of the simplest things we could do to lower the cost of living for hardworking American families.
- [29:35]
Joe
Well, this is really important to our audience and I know it is to you. Senator, you co sponsored the Credit Card Competition Act act of 2023 with which neither leaders Schumer or Thune ever brought to the floor. Have you talked to Leader Thune about getting a vote on this now that the President has planted a flag on this issue.
- [29:54]
Senator Roger Marshall
Sure, Leader Thune has been very receptive to these conversations and we'll wait to see when the opportunity arises. But again, if the job of Congress is to address the cost of living, just passing our credit card competition bill alone would lower the cost of gas and groceries by 1 or 2. Gas prices are coming down thanks to President Trump's policies of drill baby, drill. But we still have other work to do. So I think that this would be a great win for the American people.
- [30:21]
Joe
Senator Roger Marshall, the Republican from Kansas, speaking with us late yesterday, and guess who was watching that one. That's the clip that President Trump posted on Truth Social obviously liked the idea that the Senator was talking about his efforts to lower prices. And when it comes to this credit card issue, this is a tough climb for the President whether he's got Congress on his side or not. The lobbying effort here will be pronounced JPMorgan Chase we mentioned earlier put up earnings today. Says everything is on the table to fight the 10% cap on credit card rates. Beyond that, JPMorgan Chase saying that it threatens to significantly change its business would harm both the bank and its customers. JP Morgan shares down about 3 1/2% right now. $313. USA Today out with the headline that just crossed the terminal. The US could take action on Greenland in weeks or months. We'll stand by and we'll assemble our political panel next. Stay with us on Balance of Power. We'll have much more coming up after this.
- [31:31]
Public.com Announcer
Support for the show comes from Public on public you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index with AI. It all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year. You can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are completely customizable and based on your thesis, not someone else's. Go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market paid for by Public.
- [32:21]
Joe
Investing Brokerage Services by Open to the Public Investing Inc.
- [32:24]
Public.com Announcer
Member FINRA and SIPC Advisory Services by Public Advisors llc. SEC Ready Registered Advisor Generated Assets is an interactive analysis tool output is for informational purposes only and is not an investment, recommendation or advice.
- [32:36]
Joe
Complete disclosures available@public.com disclosures.
- [32:41]
Jeannie Shanzano
You'Re listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and 5pm Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app Listen on Demand.
- [32:52]
Senator Elizabeth Warren
Wherever you get your podcasts or watch.
- [32:55]
Joe
Watch us live on YouTube. Bill Clinton was a no show today. Do you hear about this? The Oversight Committee? We're writing about it here on the terminal. Clinton Defies House GOP Subpoena in Clash over Epstein Probe Whoa, we haven't said the name Epstein in a long time, have we? Been so much with Venezuela, Cuba, Colombia, Iran, Former President Clinton defying a House Republican committee subpoenaed by failing to appear at a deposition today. Nobody really thought he was going to walk in the door, did you? And instead wrote a letter. And now this is interesting. Most folks expected the no show. We didn't expect the follow there. You see it on YouTube here. This is a multi pager as House Oversight Committee Chair James Comer threatens Clinton where they contempt prosecution, saying his panel will move next week to hold Clinton yes, in contempt of Congress, adding no one is accusing Clinton of wrongdoing. Well, Bill Clinton goes to Twitter. This is not about right or left, he says. It's about right and wrong. Writing persuasively, every person has to decide when they have seen or had enough are ready to fight for this country, its principles and its people, no matter the consequences for us. Now is that time. This is where we start our conversation with our political panel. Bloomberg Politics contributor Jeannie Shanzano is with us. Democracy visiting fellow Harvard Kennedy School's Ashe center and Mauric Gillespie is back, our Republican strategist founder, Bluestack Strategies. It's great to see both of you, Jeannie. I guess none of us should be surprised, as I mentioned, that Bill Clinton didn't walk through the door to be harangued by James Comer. But what do you think of the letter and will he be held in contempt?
- [34:49]
Jeannie Shanzano
Joe I first have to say that when I did my usual morning round of reading Truth Social, as of course I do, who did I see on my Truth Social post but my very dear friend Joe Matthew. So this must be the most balanced show in the world because one day Jon Stewart just the other day, then the President. How about that? And what an interview with I'm just.
- [35:13]
Joe
Glad you're keeping score, Jeannie. And I'll tell you, when the President posts a video, you know it's like, God, what did I say what the best part of that video is? I don't say a single word. And I'm just going to leave that right there.
- [35:25]
Jeannie Shanzano
There you are prominently featured. Listening to the senator. You know, I think, of course, whenever we talk about Epstein, the first and most important thing we have to address are the victims who have been waiting a long time for the release of this material. And I think the fact that the material has not been released in complying with the law yet, that is incredibly problematic. I do understand from the DOJ's point of view, it's a lot of material and they are working through it. That is problematic. Likewise, I think you have to comply with subpoenas by Congress. But. There's a but here. Those subpoenas have got to be within the measure of the law. And as I read the letter by the Clintons, that is what they are talking about. There are limits to Congress's really important oversight work. For instance, when they call people in for testimony, that testimony has to be related to a legislative end. His attorneys are saying it is not. And so I think we have to wait for this to play out and to see where this ends up. Because of course, all of you know, at least my I should say suspicion is raised because Colmer is one of the people who hasn't been that intent on releasing this material, but all of a sudden is very intent on having the former president and secretary of State testify before his committee.
- [36:46]
Joe
Yeah, it's interesting, Maura. The former president writes, we are prepared to make our case to your 45 committee members and if need be, more importantly, we will also defend ourselves in the public arena and ensure this country knows exactly what you are doing, why you were doing. So instead of helping the American people who need this Congress's work and protection. I mean, look, first of all, it is sort of funny that we're still talking about Bill Clinton here in 2026. Maura, but you work for a former Republican speaker and you know this process when it comes to oversight. Could he in fact be charged and should he be be charged, charged with contempt?
- [37:25]
Mauric Gillespie
I don't see a situation in which James Comer doesn't bring that forward because, you know, when we worked on the January six committee, we brought contempt charges to people like Stephen and others. I think obviously he has a former president, so it does. He really. James Comer needs to really have a tight case to bring that forward. But what I'll say as far as reading through that letter and just the I think it comes across pretty tone deaf. If you're going to say and make this call to the American people about each person needs to stand up and decide for themselves where their line is. Well, Bill Clinton did the line for you and Hillary is when it impacts you and might embarrass you, what does that say to the rest of us? That this is the only time you decided to stick your neck out and write this three page letter and post it on social media? I just feel like they're really missing an opportunity if they wanted to address the situation and about what's going on with the Epstein files. They recognize that it's going to be embarrassing for them. I also think that's probably why James Comer wants to have him come forward. Right. So there is that. You know, I think I need to call that out because it's important to remind people that this isn't some, some principled stance. It is because the Clintons are recognizing that there is an embarrassment here.
- [38:27]
Joe
Interesting. Understood. And Jeannie, you know, we're still talking about less than 1%. Was the latest we heard from the Department of Justice of the Epstein files released. It's the 13th of January. The administration has been violating the law on a daily basis for weeks now. And I feel like the conversation's gone pretty silent. Is there a call or demand for the rest of these to come out?
- [38:56]
Jeannie Shanzano
You know, I think we've seen ebbs and flows with public attention on the Epstein files. And you're right, we're in a quieter moment right now. All this news about the Clinton sort of resurrects that which is not to the political benefit of the current president as well. But you're absolutely right. The, the files were supposed to be released and they have not been released. That is a violation of law. But of course, this Congress has not shown the wherewithal to stand up to this administration at many moments, in fact, most moments throughout the last year in terms of pushing for this legislation to get the files. Excuse me, released. You did see Republicans join with Democrats on that, but we haven't seen them sort of take up the mantle that the release has not happened yet and that may go forward. I do think it is important to underscore what Morris said about the Clinton statement. The, the Clint, the statement does read as tone deaf. I think it's a perfect description. And I think you don't have a lot of Democrats today who are willing to stand up and say we are going to have your back on this. I do think we have to let the law play its course. And the lawyers go forward and make their case that this is an overstep by Congress. But by the same token, Bill Clinton's relationship with Epstein, he's not accused of any wrongdoing, but that relationship, if he is asked, he should make what happened there public, particularly the 17 apparent visits to the White House that were made and that cozy relationship when he was in the White House.
- [40:35]
Joe
Man, yeah, really something. As we spend time with Jeannie and Maura, our thoughts are on the lack of trust here on Capitol Hill. And this is just another brick in the wall. There's no bigger swear word than rescissions at the moment when you talk to Democrats. And shortly behind that is reconciliation. And Maura, we've been talking about the idea of another reconciliation bill after the, the, the big beautiful bill or whatever passed. This idea of a 2.0 has been coming around again on the Republican Study Committee is out with its framework here on what they're calling making the American dream affordable again. Does that spell something? And Punchbowl got its hands on the documents with some of the items in here, including the Don, a payment program that is a zero to low down payment mortgage for creditworthy borrowers. There's also a bill eliminating capital gains for a home seller if the home is sold to a first time buyer. A lot of affordability stuff in here that would really coincide with the president's messaging and what he's likely to say in the State of the Union. But Maura, would this not erode trust even further if Republicans pursue another reconciliation bill? Should they pursue it? Could they pass it at this point in time?
- [41:56]
Mauric Gillespie
Whether they could pass or not, I'm not entirely confident. I do see this largely as a messaging tactic because they've lost the messaging battle here, you know, with the president being so focused on foreign policy in ways that are not consistent with conservative principles or really our American values. They have struggled, I think, in a large way to talk to their constituents about what they're actually doing in Congress to make life more affordable and to make life better for them here at home. And so I do this as an opportunity for not only people running for office in the Republican caucus, but for the president himself. As you mentioned, he has a State of the Union address coming up. This will be something for him to tout. Whether it has any legs to stand on, it doesn't really matter, I don't think to the White House. They need something to talk about and to really drive through to people who maybe are not paying attention to the details. But will make it sound good. And, and I say that with a bit of a heavy heart because I don't want that to be the case for Congress. Congress already has low approval ratings. We elect leaders to lead and to do something and to work with one another to get something done. And unfortunately, I see this as a messaging tactic, not an actual policy strategy.
- [43:00]
Joe
Interesting, Jeannie. Maybe I'm getting at this all wrong. I mean, we heard Elizabeth Warren talk earlier, getting phone calls from Donald Trump. They're going to work together on affordability. Do Democrats line up behind a reconciliation bill that includes eliminating capital gains for a home seller, this zero to low down payment mortgage, Call it the Don, maybe change the name. Could there be some bipartisan action here? Or am I crazy?
- [43:26]
Jeannie Shanzano
Maybe they could call it the Liz, who knows? You know, I, I don't know if we're going to see bipartisan action. And I thought it was really interesting today on this, this point that the speaker of the House of all people sort of came forward and threw cold water on this idea about capping interest rates. And I don't think that's a big surprise. There are a lot of fiscal conservatives in the Republican Party and in Congress for whom all of these sort of Elizabeth Warren, Bernie Sanders, Don, if we can call them that, ideas are just anathema to who they are and what they've always believed in. So I think that's the problem that the President has if he intends to pursue these seriously via the legislative process. And you know, I got the sense from Mike Johnson's comments today that he sort of was just saying, oh, you know, the president, he throws these ideas out, but that's all this is. So I'm not even sure the Republicans in Congress are taking these ideas seriously. But Donald Trump's instincts politically are right. He ran on this, he has not delivered. And if he's going to have any chance in the midterms or Republicans are, he's going to have to have an agenda to run on.
- [44:39]
Joe
Well, you're right about the House, Jeannie. The Senate, though, seems to be listening. Senators reintroduced Trump backed Credit card Competition act. Just like that. Let's get Roger Marshall back on the line. Thanks for listening to the Balance of Power podcast. Make sure to subscribe if you haven't already. Apple, Spotify or wherever you get your podcasts. And you can find us live every weekday from Washington D.C. at Noontime eastern@bloomberg.com these days it seems like AI agents are just about everywhere you turn every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities giving you a single layer of control, a single standard of trust. Trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent. Secure any agent. Okta secures AI well, the holidays have come and gone once again but if.
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Joe
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Joe
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