LIFTED ALMOST 4 MILLION
AMERICANS OFF OF FOOD STAMPS.
DAGEN: JOINING US JON
HILSENRATH, CHINA PUSHING BACK
THIS MORNING SAYING RENEWED
PRESSURE WILL NOT WORK, HOW DO
50 BILLION OF TARIFFS ON THE
CHINESE AND THERE'S ANOTHER
200 BILLION COMING.
ON THAT, THAT'S RUNNING OUT AND,
YOU KNOW, I WOULD EXPECT THE
PRESIDENT TO GO AHEAD WITH THAT
WITH NEW OFFICERS TO BRING DOWN
OUR TRADE DEFICIT WITH THEM.
SO I THINK THAT IS THE NEXT
STEP, YOU KNOW, I THINK WHAT'S
THEY SPENT A LOT OF TIME IN THE
LAST SIX MONTHS FOCUSING ON
STEEL TARIFFS AND
U.S.-ME
U.S.-MÉXICO-CANADA TENSIONS IN
EUROPE.
I THINK THERE'S A DESIRE TO
FOCUS MORE ON CHINA AND U.S.
TRADE ISSUES WITH CHINA BECAUSE
THEY FEEL LIKE THAT'S MORE OF A
DAGEN: FORCE OF RENDER
GOVERNMENT THERE.
IT'S RUNED OUT OF BEIJING
ESSENTIALLY.
GO AHEAD.
JON: A LOT OF STATE SUPPORT FOR
YOU KNOW, AGAINST A LOT OF
AMERICAN INDUSTRIES FOR A LONG
TIME.
DAGEN: ANY SENSE OF WHETHER WE
DO GET THE TRADE DEAL DONE WITH
CANADA, WE WERE TALKING ABOUT IT
WITH YOU EARLIER IN THE WEEK
OF DAILY QUOTAS AND TARIFFS ON
CANADA'S SIDE, CANADA WANTS TO
KEEP IN PLACE, PANELS, TARIFF
DISPUTES AMONG THE COUNTRIES,
HOW -- DO YOU THINK WE GET A
DEAL DONE TODAY?
AGAIN, I THINK THAT WE DO NEED
TO HIGHLIGHT THAT THIS IS
NEGOTIATING, IT'S WORKING
WHETHER YOU LIKE THE NITTY
GRITTY OF THESE DEALS, THAT WE
ARE COMING BACK TOGETHER WITH
FROM THE CANADIANS AND THE WHITE
HOUSE THAT THEY ARE MOVING
PRETTY QUICKLY TOWARD SOME KIND
SO, YEAH, I MEAN, IT DOES LOOK
LIKE THERE'S GOING TO BE AN
AGREEMENT, ONE THING TO POINT
LOT OF PEOPLE THAT WE ARE
TALKING IN WASHINGTON ARE JUST
PUZZLED ABOUT THE DETAILS, YOU
KNOW, THERE'S -- AN AGREEMENT,
FOR INSTANCE, ABOUT HOW MUCH
CONTENT HAS TO GO INTO AMERICAN
-- AMERICAN IMPORTED CARS, HOW
MUCH -- HOW MUCH LABOR CONTENT
GOES INTO THAT AND HOW THEY WORK
THAT OUT HASN'T BEEN REALLY
SORTED OUT, SO, I THINK WE COULD
GET A HANDSHAKE DEAL BUT A LOT
NEXT FEW WEEKS.
JON: GREAT.
THERE'S A LOT OF EXCITEMENT
ABOUT THE ME
ABOUT THE MÉXICO DEAL, POTENTIAL
FOR CANADA DEAL, CHINA MAY NOT
SO MUCH.
FROM THE FED JUST TO QUOTE JAY
POWELL WE HEARD SOMETHING ALONG
THE LINES OF IF THIS CARRIES ON
UNCERTAINTY MAY START HAVING
EFFECT ON ECONOMIC DATA.
BASED ON THE CONVERSATIONS WITH
POLL INCOMES THE FED, IS MORE OF
AN UNDERLYING WORRY THAT MAYBE
THEY ARE LETTING ON YET?
KNOW, WHAT ALL THIS TRADE
INFLATION, BUT I THINK THERE'S
ALSO SOME SENSE OF RESIGNATION
THAT THERE'S NOT REALLY A LOT
THAT THE FED COULD DO ABOUT IT,
YOU KNOW, A LOT OF ECONOMIC
RESEARCH SHOWS THAT WHEN YOU
IMPOSE TARIFFS ON IMPORTED GOODS
IT PUSHES UP PRICES BUT IT'S A
ONE-TIME EFFECT, DOESN'T CHANGE
THE RATE OF INFLATION OVER THE
LONG RUN SO THE FED CAN'T REALLY
DO THAT, YOU KNOW, KIND OF
THROWS SNAND THE GEARS OF THE
FED REALLY CAN'T CONTROL THAT,
THE FED IS TRYING IN THE LONG
RUN TO GET THE ECONOMY GOING
WITHOUT CAUSING A LOT OF
INFLATION AND THEY CAN'T CONTROL
THAT IT CHANGES FED POLICY ALL
BLOOMBERG THAT HE WOULD CONSIDER
PULLING OUT OF WORLD TRADE
ORGANIZATION IF THEY DON'T,
QUOTE, SHAKE UP.
THIS WOULD TAKE ACT OF CONGRESS
TO DO THIS.
DAGEN.
IT WOULD BE A NEW FRONT IN THE
WHITE HOUSE'S TRADE AND RIGHT
NOW THE MAIN FOCUS IS ON TURNING
THE ATTENTION BACK TO CHINA AND
INTERESTINGLY ONE OF THE
QUESTIONS PEOPLE HAVE IS WHETHER
THE U.S. SHOULD BE CHALLENGING
CHINA INSIDE THE WTO, WHETHER WE
SHOULD BE THREATENING TO KICK
ORGANIZATION.
SO, YOU KNOW, IT'S AN
INTERESTING QUESTION.
DO WE PULL OUR FOOTBALL AWAY AND
THAT ORGANIZATION, WE KNOW THAT
THAT THIS ADMINISTRATION IS
SUSPICIOUS OF INTERNATIONAL
INSTITUTIONS AND THAT EMBODIES
THEIR SUSPICIONS.
DAGEN: BUT WE WIN ALMOST 86% OF
ALL THE CASES THAT WE BROUGHT TO
THE WTO, IT'S 85.7% AND SINCE
ECONOMY RATHER THAN GETTING TOO
CLOSE TO DATA POINTS THAT COME
OUT EACH AND EVERY DAY ON THE
HEADLINES.
JON, THE ECONOMY LOOKS
INCREDIBLY GOOD DOES IT NOT, I
SAID THIS EARLIER, IN TERMS OF
WAGE GROWTH, IN TERMS OF
CONSUMER OPTIMISM IN TERMS OF
THE JOB MARKET ACTUALLY EVEN
THOUGH JULY WAS WEAKER THAN
EXPECTED, WEAR MONTHLY AVERAGE
JOB GROWTH THAN WE DID LAST YEAR
IN THE FIRST 7 MONTHS OF THE
YEAR TELL, CAN YOU SEE ANYTHING
THAT LOOKS BAD.
JON: THE ONE THING THAT I HARP
ON IS THAT WE ARE RUNNING ON
TRILLION DOLLAR DEFICITS IN GOOD
QUARTER, IF YOU LOOK AT GROWTH
IT'S CLOSER TO 4%, ACCELERATION
FROM WHAT WE HAD EARLIER, THAT'S
GOOD NEWS, THE UNEMPLOYMENT RATE
IS DOWN UNDER 4%, A LOT OF
YOU WOULD BE RUNNING LOWER AND
HE'S GOING TO ELIMINATE PAY
RICHARD BECAUSE I WANT TO KNOW
WHAT YOU MAKE OF THAT BEFORE WE
GO.
JON: WELL, IN ORDER TO DO THAT
YOU HAVE TO DECLARE A NATIONAL
-- DECLARE AN EMERGENCY, SO IT'S
A LITTLE IRONIC THAT DURING THIS
ECONOMIC BOOM THAT THE PRESIDENT
WAS TOUTING LAST NIGHT IN THIS
RALLY, YOU KNOW, HE'S SAYING
THERE'S AN EMERGENCY ON THE
BUDGET SITUATION AND THAT BRINGS
ME BACK TO THE POINT I WAS
MAKING BEFORE.
YOU COULD SAY THERE'S AN
EMERGENCY ON THE BUDGET FRONT,
YOU KNOW, DURING THE LATE
1990's WE HAD AN ECONOMIC BOOM
AND WE WERE RUNNING SURPLUSES
AND NOW WE ARE LOOKING AT
TRILLION DOLLAR DEFICITS, WHAT
ARE WE GOING TO DO THE NEXT TIME
WE ARE IN A RECESSION AND WE