SHUTDOWN AND THAT STRIKE.
CHERYL: DECEMBER 1st TO YOUR
POINT IS THIS WEEK MADISON.
THANK YOU VERY MUCH.
POTENTIAL RAIL STRIKE AVERTING
POTENTIAL SHUTDOWN ON LAWMAKERS
MINDS AS CONGRESS RETURNS TO
SESSION.
FORMER WHITE HOUSE ACTING CHIEF
OF STAFF MICK MULVANEY.
GOOD TO SEE YOU.
>> THANKS FOR HAVING ME.
CHERYL: A LOT TO GO THROUGH WITH
YOU.
DEMOCRATS ARE COMING BACK
ADDRESSING GUN LAWS WHICH MIGHT
BE A LONG SHOT.
REPUBLICANS MAKING PLANS FOR
INVESTIGATIONS, IMPEACHMENTS,
THIS AT A TIME WHEN THE ECONOMY
IS FACING HUGE HEADWINDS.
LET JUST START WITH A LOOMING
RAIL STRIKE.
YOUR THOUGHTS?
>> I THINK THIS IS THE MOST
IMPORTANT ISSUE CONGRESS WILL
HAVE TO DEAL WITH WHEN IT COMES
BACK.
KEEP IN MIND RAIL IS AN REAL
INTERESTING PART OF ECONOMY,
BECAUSE OF ITS HISTORY, BECAUSE
OF LEGISLATION OWN THE BOOKS.
CONGRESS CAN GET INVOLVED, PASS
A RESOLUTION, WOULD HAVE TO
EVERYBODY SIGNED BY THE
PRESIDENT, DELAY OR PREVENT A
STRIKE.
YOU HEAR CONGRESSIONAL INPUT.
NOT LIKE A STRIKE AT AIRLINES OR
ANY OTHER PART OF THE ECONOMY.
CONGRESS CAN ACTUALLY GET
INVOLVED HERE AS THEY HAVE IN
THE PAST YOU BUT IT IS NOT EASY
TO DO.
YOU HAVE TO HAVE SOMETHING GET
BY THE HOUSE AND SENATE AND
SIGNED BY THE PRESIDENT.
THIS IS BIGGEST THING WITH
EXCEPTION OF FUNDING GOVERNMENT.
THE GOVERNMENT RUNS OUT OF MONEY
DECEMBER 15 THIS, 16.
>> 16?
TWO LAME DUCKS THEY DON’T LIKE
TO DEAL WITH BIG ISSUES.
THEY HAVE TO DO THAT THIS YEAR.
CHERYL: IT WILL NOT BE GOOD FOR
THE UNIONS IF CONGRESS GETS
INVOLVED.
MAYBE WE WILL GET A DEAL AND NOT
GAME THIS OUT.
I WANT TO TALK ABOUT 2023
PARTICULARLY HOUSE PRIORITIES.
WITH KEVIN McCARTHY,
REPUBLICANS COMING IN, TALKING
ABOUT A INVESTIGATION OF
HUNTER BIDEN.
THEY WANT TO INVESTIGATE JOE
BIDEN.
THEY WANT TO GO AFTER MAYORKAS.
IS THIS THE RIGHT TIME TO PUSH
INVESTIGATIONS AND THESE OTHER
THINGS, THESE POLITICAL, I GUESS
FOOTBALLS IF YOU WILL WHEN YOU
HAVE GOT THE ECONOMY SO FRAGILE?
WHERE SHOULD WE BE PUTTING OUR
ENERGY?
IF KEVIN McCARTHY IS COMING
IN, THEY HAVE A CHANCE TO MAKE A
REAL DIFFERENCE TO TELL VOTERS,
LOOK, WE YOU PUT US IN CHARGE
WE’LL MAKE YOUR LIFE BETTER,
WHAT SHOULD HE BE FOCUSING ON
AND WHAT THEY SHOULD BE FOCUSING
ON.
>> IT IS NOT A BINARY CHOICE.
I HAVE BEEN CRITICAL OVERSIGHT
BOTH PARTIES HAVE DONE.
DOESN’T MEAN YOU CAN’T DO A
INVESTIGATION IN ONE COMMITTEE
AND LOOK AT LEGISLATION IN
ANOTHER.
I TALKED TO POTENTIAL REPUBLICAN
LEADERS, VARIOUS COMMITTEES, AND
THEY’RE LOOKING FOR EXAMPLE
DOING LEGISLATION ON CHINA,
LEGISLATION ON BIG TECH,
LEGISLATION ON CRYPTO AND SO
FORTH.
THOSE THINGS CAN GO FORWARD
WHILE INVESTIGATIONS ARE GOING
ON AT THE SAME TIME.
KEEP IN MIND A FINANCIAL
SERVICES COMMITTEE SEPARATE AND
APART FROM THE OVERSIGHT TO THE
JUDICIARY COMMITTEE.
IT IS NOT A BINARY CHOICE
BETWEEN THE TWO THINGS.
I THINK THE INVESTIGATIONS ARE
PROBABLY INEVITABLE GIVE THE
POLITICAL CLIMATE WE’RE IN BUT
DOESN’T MEAN OTHER WORK WILL NOT
GO ON AT THE SAME TIME.
IT IS IMPORTANT OTHER WORK GOES
ON AT THE SAME TIME.
CHERYL: YOU HAD DR. FAUCI ON
TELEVISION YESTERDAY HE KNOWS HE
WILL GET CALLED.
HE IS READY TO FACE CONGRESS.
HERE WE GO.
I WANT TO GET YOUR TAKE ON THESE
HAWKISH COMMENTS WE’VE GOTTEN IN
THE LAST FEW MOMENTS.
THIS IS ST. LOUIS FED PRESIDENT
JAMES BULLARD.
RATES NEED TO GO HIGHER TO BRING
DOWN INFLATION.
THIS INTERVIEW HE HAS BEEN
GIVING AND IT IS ONGOING.
BASICALLY HE IS BEING VERY, VERY
HAWKISH, BASICALLY MAKES IT
SOUND LIKE WE REALLY NEED TO,
RAISE RATES QUICK, FAST, JUST
MAKE IT VERY PAINFUL.
WHAT DOES THAT MEAN FOR THE
MEETING THAT IS COMING UP THIS
MONTH?
>> THAT IS A BIG MEETING.
THE QUESTION FOR BULLARD SHOULD
BE THIS, HOW DOES THAT SOLVE THE
SUPPLY ISSUES?
IF YOU’RE LOOKING AT INFLATION
CAUSED IN PART, IF NOT IN LARGE
PART BY SUPPLY ISSUES, WE SIMPLY
DON’T HAVE ENOUGH GOODS AND
SERVICES TO SELL, HOW DOES
RAISING RATE RATES HELP THAT?
IT CAN CRUSH DEMAND.
IT IS IN FACT CALLED DEMAND
DESTRUCTION BY THE ECONOMISTS.
THAT COULD CAUSE RECESSION.
IS THAT THE SMARTEST WAY TO DO
IT?
LOOK AT WAYS INSTEAD TO INCREASE
THE SUPPLY OF GOODS AND SERVICES
AND LET THAT BRING DOWN PRICES.
THE RAIL STRIKE IS SO IMPORTANT
BUT NOT JUST ON THE GENERAL
IMPACTS OF ECONOMY BUT IMPACT ON
SUPPLY CHAIN COULD MAKE
INFLATION WORSE DESPITE WHAT
FEDERAL RESERVE DOES.
WHEN YOU’RE IN THE FEDERAL
RESERVE YOU HAVE ONE TOOL, A
HAMMER AND EVERYTHING LOOKS LIKE
A NAIL.
WHAT THEY DO RAISING RATES WILL
NOT CHANGE SUPPLY IN THE ECONOMY
THAT IS THE QUESTION BULLARD HAS
TO ANSWER, THE FED AT NEXT
MEETING HOW ARE THEY LOOKING AT
IT HOLISTICALLY AS OPPOSED TO
LOOKING FROM THE DEMAND SIDE.
CHERYL: HIS VOICE CERTAINLY
MOVED MARKETS TODAY.
WE DEFINITELY TICKED LOWER ON