Rep. French Hill (R) Arkansas Talks Powell, Middle East, Trump Tax Bill
07:03 Share

This is an iHeart Podcast. For enterprise organizations, managing all your food needs is a tall order. But with EasyCater, you get a single workplace food vendor with the tools and resources to make it easy, giving teams across your organization an easy way to order from a huge variety of restaurants, all on one platform. All while consolidating your corporate food spend so you can control costs, streamlining billing and payment and simplifying reporting.

EasyCater, your business tool for food. To learn more, visit easycater.com slash podcast. Bloomberg Audio Studios. Podcasts, radio, news. Joining us now is the Congressman French Hill of Arkansas, chairman of the House Financial Services Committee, which the Fed chair will be testifying before later on today. Congressman, welcome back to the program, sir. Always good to hear from you. I'm going to start with a slightly provocative question. I'm paraphrasing, Keir. Do you plan to work over this very dumb, hard-headed person a little bit later this morning?

Well, Jonathan, it's great to be with you. We look forward to having Chair Powell before the committee this morning. And I think he'll face questions on his outlook for inflation and therefore what his views are about rate cuts coming forward. I think that's the important issue of the day. But he'll also probably be complimented by members because the Fed has recently taken decisions to get out of some of the environmental social governance groups that they were involved in around climate change.

Some of the House Republicans have never thought the Fed should be involved in over the past few years. We want them focused on price stability, number one. And number two, we want them focused on a safe and sound banking system. We thought that was a distraction. So we've got monetary policy and then we've got bank regulation. So, Congressman, let's start with the monetary policy first. As you're aware...

And as I implied with that first question, the White House is really ramping up the pressure on the Fed chair. Do you worry that the chair starts to become more worried about the optics of cunning interest rates than focused on the data that might justify them?

I really don't, Jonathan, because since World War II, we've seen pressure from presidents on Fed chairs, but we've seen the Fed chairs and the Board of Governors try to be data-driven in their decisions. And of course, they've made mistakes over that period of time, which is while the Fed is a creation of Congress, and I believe strongly in an independent monetary policy, it's also true to recognize that they're not immune from criticism.

So there's a debate, and you've already seen that debate shaping on the Open Market Committee itself with the comments from Governor Waller and Governor Bowman. Congressman, would you be willing or would you support the idea of nominating someone to be the next Fed chair soon so that they can have an outsized influence over the committee?

I think it's my base case assumption that Chairman Powell will serve out his term and President Trump will make a determination on who he thinks should be the next chair at that time.

Well, just the reason why I ask this is because some people have speculated that that's what's going to happen. We have heard from this administration that they are going to consider potential future candidates. And there's a lot of speculation that Chris Waller and Michelle Bowman are kind of in the running and trying out. I mean, how much would you like to see some of this noise taken away from the real debate, which is what is the predominant risk to markets? Is it potential weakening or is it inflation?

Well, again, as I say, I think certainly since World War II, the speculation about how presidents feel about their Fed chairs and who they might nominate to succeed a Fed chair has just been part of the markets and the markets understand that.

What's important is that the Fed gets it right and we focus on price stability. And if inflation forecast and inflation expectations are anchored at that 2% level, then I think that's certainly something the Fed should take into strong consideration about a rate cut in the coming meetings. And that's exactly the kind of work I want them to do is use data analytics.

look at the trends in the market, look at their forecast and make that decision to the best of their ability. And many of those officials are folliclous on the policy outcomes of other things. July 4th, we've got a self-imposed deadline to pass the one big beautiful bill. July 9th, another self-imposed deadline to come to some kind of trade deal with a whole bunch of countries. Congressman, could you maybe have the Fed chair a little bit later this morning? Where do you think we will be in a few weeks' time?

Well, look, I think uncertainty is a part of life. It's a part of the stock market and the bond markets every single day. But if I look back at the 1980s, we had extraordinarily high inflation. We had high budget deficits for the time. We had a defense buildup underway. We had a dollar

that some deemed significantly overvalued. And yet Ronald Reagan, through tax cuts, through regulatory reductions, through the right monetary policy between Paul Volcker and Alan Greenspan, saw the economy grow and grow dramatically. And I think America is poised to grow dramatically. Look at GDP since the summer of the pandemic.

It was about $21 trillion. Today it's $28 trillion. We're the preferred investment location for global investment around the world, and I believe that that uncertainty will drop over the coming weeks as we have clarity on taxes, clarity on regulatory policy.

and we dropped the slope, steep slope of incredible amounts of federal spending coming out of the Biden administration. Congressman, just away from the events in Washington, D.C. this morning, we'd love a comment from you on the news of this morning elsewhere, particularly in the Middle East. The president posting on social media just moments ago on a truce between Iran and Israel, a very frustrated post from the president. Do not drop those bombs addressing Israel. If you do, it's a major violation. Bring your pilots home.

and do it now and the tone as we understand the president leaving making his way to the NATO summit in Europe was a very frustrated very frustrated president the United States with Israel with Iran and hopeful that maybe we can establish a long-lasting truce in the Middle East do you think we can establish peace through strength in the Middle East how much a change is that with this administration relative to the Biden administration over the last few years

Well, I do think peace comes through strength, and that's been demonstrated by President Trump both in the Middle East with his Abraham Accords in his first term and with his efforts to end Iran's dismissal of the West.

All during the Obama administration and Biden administration, we had appeasement from the Democrats in the White House. They funded Iran's missile operation. They relieved sanctions. They let them sell all their oil on the open markets. They facilitated that money going then to the Houthis,

Hezbollah, Hamas, and we've seen the damaging position on that. And so Trump is returning to his pressure on Iran through ending the nuclear program, not delaying it. And I think it's going to change the balance of power in the Middle East for the better.

And I think it demonstrates peace through strength. And also, I think the president going to the NATO meeting will demonstrate that again as European countries now commit to spending 5% of their gross domestic product on defense, standing up a stronger, more robust...

industrial base and defense posture for Europe. I think that's good for the Atlantic Charter, for NATO, and I think it's good for future peace in the Middle East. For enterprise organizations, managing all your food needs is a tall order. But with Easy Cater, you get a single workplace food vendor with the tools and resources to make it easy, giving teams across your organization an easy way to order from a huge variety of restaurants.

This is an iHeart Podcast.