Interviewer (2:33)

So Senator, with that in mind, should US Based investors be able to have access to investing in these companies?

Senator Thom Tillis (2:42)

Well, look, I've got a real problem with we had a banking committee meeting yesterday with, with Atkins before from the sec and I've got a real problem with the US Getting into a trend of buying into some of our companies. I, I feel like we should let the free market really drive innovation. And also back to the segment before I watch your prior segment. We've also got to unleash AI. We can't be afraid of it. We have to embrace it, we have to leverage it and we have to be the leader in innovating in it.

Interviewer (3:15)

Well, Senator, let's talk about that. Creative destruction is a feature of the U.S. economy and American dynamism is something Lisa was Taugh talking about earlier on this morning. Senator, I feel like there's an aversion to that these days and a fear associated with some of the headlines we've all seen over the past week. The prospect of white collar jobs being wiped out. How do we prepare for a moment like that and ensure that what globalization did to manufacturing doesn't happen to services with AI?

Senator Thom Tillis (3:45)

Well, we have to be ever watchful. But the bell has been rung. We could either decide to be the innovation leader and work with our partners and allies, the, the nations that we have military alliances with, to make sure that the Western world is still in the front of it. But I'm reminded of books that I read about the industrial revolution and anytime that we've had a major leap in technology, we can't pretend like it didn't happen. We have to figure out how to master it and be the best practice in executing it and dealing with all the potential negative consequences. And job displacement. I think the jury's still out on what the net job displacement is going to be. Does it mean that we've got to put more money in education and retooling expert expertise around the needs of the future? Probably, almost certainly. But we should resist it. We should make sure that we get rid of the patchwork of laws that are being implemented at the state level that are impediments to our own indigenous innovation. And I come up with rules of the road at a federal level and just unleash the power of the US Innovation economy to lead the world and get in it. Right.

Interviewer (4:53)

Senator, do you feel like internationally there's the same skepticism you're in Europe, it's known for regulating their experts in it and it seems Like a growing number of people feel like that is hampering some of the progress. I mean, is there the same kind of enthusiasm? What's the mood like around some of the story that's causing a lot, a lot of, a lot of volatility certainly here in the United States.

Senator Thom Tillis (5:19)

For years I've been trying to remind everyone of how critical we were of the GDPR data privacy, data breach policies that the EU implemented. They made mistakes, they corrected some of them. But then states started gold plating some of those policies, California and other ones that are again impediments to our tech sector. What we need are national. This is clearly interstate commerce. We need to preempt these laws, make them better if we find a best practice, be instructed by that at some state level. But we need to set that platform right or the malign uses of AI are going to outpace our ability to stay up with them. That's, that's why I think it's so important. I was the one, the only one, actually. 99 members voted against that. There was a, an amendment last year to try and preempt the laws at the state level, come up with a national standard. I think that we need to do that very quickly and we should throw data privacy, data breach in there so that we get it right. And maybe we have a gold plated standard that Europe can be instructed by.

Interviewer (6:18)

In the meantime, as people are concerned about this labor market transition and the pain that could come alongside it, it's one reason why there's been so much focus on the Federal Reserve. It's one reason why people are saying it might behoove the Fed to cut rates more aggressively in order to ease the pain for a number of individuals otherwise might be losing their job. I mean, how much are you feeling satisfied in the process that you could get a hearing for the nominee, Kevin Warsh, in the not so distant future? Do you think that that's feasible?

Senator Thom Tillis (6:50)

Well, we can have a hearing all we want, but until the investigation is done, I still believe that the initial inquiry and the investigation was a flex to try and get the current chair to step aside. Chair Powell has a term as chair expires in May. He also has a term that could extend for two more years. I have no intention allowing any Fed board nominee to move forward out of committee and to be confirmed until this matter is settled. But this is foundational to Fed independence and I for one, I'm going to stand on the side of certainty. And Fed independence is what delivers certainty in our markets.

Interviewer (7:26)

So Senator, it's intriguing because we heard from the Treasury Secretary earlier on this morning speaking to the American press and he said the following, that I spoke with Republican senators early this week and I think we have agreement to go ahead with the Walsh hearing. Do you have an understanding of where he's getting that impression from?

Senator Thom Tillis (7:45)

Well, you know, I've said that if, if they, they shouldn't confuse or conflate two issues. The suggestion that we should have an oversight hearing to see how well this building project with the Fed has gone to fine with me. In fact, I think we should have that kind of oversight for the East Wing construction. The outfit of the Air Force One, that's kind of a mini Air Force One because it can't fly out of US Borders. All of that is just good governance, oversight. None of that has anything to do with an investigation that I believe was dead on arrival. We are talking about two minutes of testimony that seven members of the Banking Committee, Republican members, including the chair, have all said did not constitute a crime. We've got a prosecutor who, who's not listening to the eyewitnesses and continuing. That's not productive. And I'm not going to, I'm not going to allow it. Maybe they can convince a Democrat to vote with them, but as long as I'm the deciding vote, we can have Mr. Wash, who I would love to be the next Fed Chair, but I'm not going to confirm the next Fed Chair until I can be absolutely certain that these sorts of flexes do not always have members of the Federal Reserve Board or the chair looking over their shoulder wondering when they get the call from some US Attorney with a dream.

Interviewer (8:59)

Senator, if you had the call from treasury or from the White House about this, when was the last time you had the conversation on the issue?

Senator Thom Tillis (9:08)

Well, I've had, I've had a conversation with the American people in C SPAN yesterday on the floor. And I don't think I was mincing words. I'm not really known for that. But if I need to make it very clear this is about an end or a resolution, I'll give the prosecutor the benefit of the doubt. Provide me with evidence beyond the two minutes of testimony and the committing that seven Republican members said was not criminal, it was not misleading and that there was no criminal intent. It's like an indictment looking for a crime. And to me it just, it's at the edge of absurdity that I can't accept. The only thing I know that I can do is exercise my right as an individual senator to hold up future nominations until this investigation is done. But to the, to the, to the Assistant U.S. attorney, bring me evidence beyond the two minutes has been rejected out of hand by members of the majority of Republican members on the committee or prove to me that there's been an instance where a referral. What's really odd about this, and I spoke about this on the Senate floor yesterday, this is the first time that I can find where a prosecutor moves forward with an investigation without a referral from the chair or a member of the committee, maybe somebody can prove me wrong. But if that prosecutor has compelling information, either the way they read that two minutes or something else that no one's aware of. Let me see it.

Interviewer (10:32)

Senator, before you go, time for one final question. You're in Munich. Let's finish where we started. Chancellor Merz just spoke moments ago and said the transatlantic partnership is no longer self evident. Senator, how received, how well received was your delegation in Munich?

Senator Thom Tillis (10:51)

Well, you know, we're going to have, I think we're going to have a lively discussion here. I had someone ask me about J.D. vance's, Vice President Vance's speech last year. I said that I wouldn't have given that speech, but I would not have missed the opportunity to let my family of nations and NATO know that one of the reasons we're here is because of the $2 trillion deficit over 20 years. Jonathan, can you imagine how much more ready we could be if all the demand signals that would have come from $2 trillion in weapons and our mutual defense had actually been purchased by the countries of NATO who have failed to even meet their minimum requirement? So I think there's frustration there that we need to get past. But I am speaking, I believe, for the majority of Congress who knows that the NATO alliance is the most profound and impactful alliance in the history, history of mankind. And we stand behind it. And we will, as we go through this discussion to get things back to normal.

Interviewer (11:48)

Senator, appreciate your time and I was loud over there. Enjoy Europe. Thank you very much, sir. Senator Thom Tillis there on the Federal Reserve on China and the relationship with the Europeans.

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