Podcast Summary: Senator Thom Tillis Talks Fed, China, and US Relations with Europe

Podcast: Bloomberg Talks
Host: Bloomberg
Guest: Senator Thom Tillis
Date: February 13, 2026

Main Theme / Purpose

This episode features an in-depth interview with Senator Thom Tillis live from the Munich Security Conference. The conversation centers on US-China relations—especially concerning new restrictions on Chinese companies like Alibaba, America's regulatory stance on AI, US-European transatlantic relations, and the latest tensions surrounding Federal Reserve leadership and policy. Senator Tillis provides a candid view of Congressional skepticism, the dynamics with European allies, and the future of AI and economic policy as the US faces global challenges.

Key Discussion Points

1. US Moves Against Alibaba and China ([01:20]–[02:33])

• The Trump administration plans to designate Alibaba as aiding China's military, tightening pressure on Chinese firms.
• Senator Tillis asserts that in China, the line between private and state-run enterprise is illusory:

  "Does anybody really believe that there's separation between the CCCP and the state owned enterprises and other their supposedly independent businesses?"
  (02:08, Senator Tillis)

• He voices support for holding China accountable, stressing that trust must underpin the relationship but isn't currently present.

2. US Investment in Chinese Companies ([02:33]–[03:15])

• The interviewer probes whether US investors should have access to Chinese-listed companies amid national security concerns.
• Tillis expresses skepticism over US investment in companies linked to strategic competitors, preferring market-driven innovation in America.
• He further highlights the importance of embracing, not fearing, AI to maintain America's technological edge:

  "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."
  (02:58, Senator Tillis)

3. AI, Creative Destruction, and Job Displacement ([03:15]–[04:53])

• The conversation shifts to AI-driven "creative destruction" and fears of job loss, especially in white-collar sectors.
• Tillis argues that technological leaps are inevitable, invoking parallels to the industrial revolution. He insists the US must "master" coming changes, not pretend they aren’t happening.
• He calls for federal-level regulation, warning against fragmented state laws:

  "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."
  (04:37, Senator Tillis)

• Stresses increased education and workforce retraining to respond to future labor market needs.

4. European Regulatory Attitudes vs. US Approach ([04:53]–[06:18])

• On the ground in Europe, Tillis observes a more regulation-heavy approach to tech, referencing past criticism and gradual correction of GDPR.
• Tillis suggests the US should use best practices from states but must preempt state law with a federal standard on data privacy and AI to avoid "malign uses."
• He notes his history of pushing for federal preemption and national standards:

  "What we need are national...platform[s] right or the malign uses of AI are going to outpace our ability to stay up with them."
  (05:41, Senator Tillis)

• Advocates for a gold-plated US standard that could influence Europe.

5. Federal Reserve: Rate Cuts and Board Nominations ([06:18]–[10:32])

• The interviewer references debate about the Fed’s need to cut rates in light of AI-driven labor disruptions.
• Senator Tillis draws a hard line:

  “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.”
  (06:58, Senator Tillis)

• Discusses the controversy over Kevin Warsh’s nomination and an ongoing investigation, suggesting it’s a political “flex” to pressure current Fed Chair Powell.
• Tillis insists he will not allow confirmation until the investigation concludes and emphasizes the importance of Fed independence.
• He highlights the lack of substantive evidence in the current probe and insists any accusations must be backed by concrete information, not political maneuvering:

  "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."
  (09:22, Senator Tillis)

6. State of US–Europe Relations / NATO ([10:32]–[11:48])

• The interview wraps up with questions about transatlantic relations and the state of the NATO alliance.
• Tillis notes mixed reception in Munich, referencing European underinvestment in defense:

  "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..."
  (11:08, Senator Tillis)

• Despite frustrations, Tillis reaffirms Congressional support for NATO, calling it the "most profound and impactful alliance in the history of mankind."

Notable Quotes & Moments

• On US skepticism towards Chinese companies:

  "I think the President is on the right track to make sure that we're starting to hold China accountable. We need a good relationship with them, but it needs to be one that's founded on trust. And quite honestly there are moves in China that I don't trust."
  (02:14, Senator Tillis)

• On unleashing AI innovation:

  "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."
  (02:58, Senator Tillis)

• On the risk of fragmented state AI laws:

  "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 just unleash the power of the US Innovation economy to lead the world..."
  (04:37, Senator Tillis)

• On the Fed investigation:

  "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."
  (09:22, Senator Tillis)

• On NATO:

  "The NATO alliance is the most profound and impactful alliance in the history, history of mankind. And we stand behind it."
  (11:33, Senator Tillis)

Timestamps for Key Segments

• [01:20] – Setting the stage: Alibaba, China, and European partnerships
• [02:42] – US investments in Chinese companies & AI policy
• [03:45] – Creative destruction and the impact of AI on jobs
• [05:19] – The problem with state-by-state regulation vs. national standards
• [06:50] – Fed investigation, Warsh nomination, and policy demands
• [10:51] – US delegation's reception in Europe & NATO’s future

Conclusion

This interview with Senator Thom Tillis presents a clear-eyed account of US geopolitical strategy and policy concerns in 2026. The senator defends steadfast US leadership in AI, calls for unified regulatory frameworks, and refuses to compromise on Federal Reserve independence, while remaining keenly aware of both the challenges and strengths of the transatlantic alliance. The conversation offers transparent insight into Congressional thinking at a crucial moment for global economic and security policy.