RUSH TRANSCRIPT That s ░░░░░░░░ everywhere than here inflation ░░░░░░░░ well in point of ░░░░░░░░ here is the reality ░░░░░░░░ Biden s just trying ░░░░░░░░ sweep under the rug ░░░░░░░░ as you can see ░░░░░░░░ the U S is ░░░░░░░░ than all the major ░░░░░░░░ economies despite what the ░░░░░░░░ said The reality of ░░░░░░░░ and a slowing economy ░░░░░░░░ not lost on average ░░░░░░░░ We re having a ░░░░░░░░ of a time right ░░░░░░░░ just making ends meet ░░░░░░░░ small businesses in America ░░░░░░░░ overwhelmed by inflation a ░░░░░░░░ of new regulations and ░░░░░░░░ threat of higher taxes ░░░░░░░░ the Fed appears to ░░░░░░░░ sending at least some ░░░░░░░░ of a message with ░░░░░░░░ 75 basis point rate ░░░░░░░░ but with the president ░░░░░░░░ a state of denial ░░░░░░░░ really have to gird ░░░░░░░░ loins for a tough ░░░░░░░░ ahead particularly since he ░░░░░░░░ determined to make matters ░░░░░░░░ with new regulations new ░░░░░░░░ and price controls on ░░░░░░░░ energy production as part ░░░░░░░░ his exceptional transition to ░░░░░░░░ green new world For ░░░░░░░░ we we bring in ░░░░░░░░ omb director and president ░░░░░░░░ center for renewing America ░░░░░░░░ vote and capital markets ░░░░░░░░ market strategist Kathryn Rooney ░░░░░░░░ Great to see you ░░░░░░░░ Russ no matter what ░░░░░░░░ Fed does can we ░░░░░░░░ out of stagflation with ░░░░░░░░ president who s in ░░░░░░░░ of reality I don ░░░░░░░░ see how I mean ░░░░░░░░ is at war with ░░░░░░░░ American economy with their ░░░░░░░░ policy and with their ░░░░░░░░ policy Today if they ░░░░░░░░ given an opportunity if ░░░░░░░░ were given Joe Manchin ░░░░░░░░ vote they would pass ░░░░░░░░ of dollars of increased ░░░░░░░░ And this is something ░░░░░░░░ ve been dogged about ░░░░░░░░ the fact that they ░░░░░░░░ no change there s ░░░░░░░░ not pivot in the ░░░░░░░░ All they ve done ░░░░░░░░ blame the Fed or ░░░░░░░░ that this is the ░░░░░░░░ s problem to solve ░░░░░░░░ the Fed began to ░░░░░░░░ that today but I ░░░░░░░░ t think when you ░░░░░░░░ an administration that is ░░░░░░░░ out of touch particularly ░░░░░░░░ the energy front that ░░░░░░░░ re ever going to ░░░░░░░░ able to truly get ░░░░░░░░ that kind of soft ░░░░░░░░ that the Fed s ░░░░░░░░ to accomplish David well ░░░░░░░░ Fed did make a ░░░░░░░░ move today Katherine but ░░░░░░░░ have a credibility problem ░░░░░░░░ here s what Powell ░░░░░░░░ saying just a month ░░░░░░░░ Roll tape So 75 ░░░░░░░░ point increase is not ░░░░░░░░ the committee is actively ░░░░░░░░ What we are doing ░░░░░░░░ we raised 50 basis ░░░░░░░░ today David the now ░░░░░░░░ know a lott can ░░░░░░░░ in a month but ░░░░░░░░ s what he said ░░░░░░░░ one month ago So ░░░░░░░░ talk about the credibility ░░░░░░░░ that the Fed has ░░░░░░░░ then talk about what ░░░░░░░░ what has changed in ░░░░░░░░ month The crazy thing ░░░░░░░░ is the Fed in ░░░░░░░░ 75 basis point points ░░░░░░░░ trying to claw back ░░░░░░░░ inflation fighting credibility because ░░░░░░░░ ve really lost it ░░░░░░░░ ll add to what ░░░░░░░░ said A year ago ░░░░░░░░ Fed was saying the ░░░░░░░░ market still needed support ░░░░░░░░ no wage price spiral ░░░░░░░░ that inflation was temporary ░░░░░░░░ nature And they were ░░░░░░░░ in their assertion that ░░░░░░░░ was temporary We knew ░░░░░░░░ and we know now ░░░░░░░░ it is not it ░░░░░░░░ not Putin s fault ░░░░░░░░ s certainly endemic in ░░░░░░░░ And unfortunately David the ░░░░░░░░ thing that a I ░░░░░░░░ is going to kick ░░░░░░░░ if back down to ░░░░░░░░ even fed target levels ░░░░░░░░ by the way is ░░░░░░░░ is unfortunately economic contraction ░░░░░░░░ I think that s ░░░░░░░░ we re going Question ░░░░░░░░ how soon will it ░░░░░░░░ And I think to ░░░░░░░░ that David we need ░░░░░░░░ watch the labor market ░░░░░░░░ see when and if ░░░░░░░░ turns and rolls over ░░░░░░░░ was I would russ ░░░░░░░░ argue on one point ░░░░░░░░ think you can solve ░░░░░░░░ you really can by ░░░░░░░░ at other side Not ░░░░░░░░ the Fed side not ░░░░░░░░ the demand side but ░░░░░░░░ supply side Increase supplies ░░░░░░░░ up the production gates ░░░░░░░░ incentives to all the ░░░░░░░░ including of course energy ░░░░░░░░ to produce more and ░░░░░░░░ bring prices down Isn ░░░░░░░░ that a solution if ░░░░░░░░ re looking for one ░░░░░░░░ that s what I ░░░░░░░░ be trying to do ░░░░░░░░ I was in the ░░░░░░░░ in a Republican administration ░░░░░░░░ d be arguing for ░░░░░░░░ very type of policies ░░░░░░░░ s get this economy ░░░░░░░░ with a real energy ░░░░░░░░ that s not at ░░░░░░░░ with energy producers and ░░░░░░░░ envisions the fact that ░░░░░░░░ actually have people in ░░░░░░░░ economy that use energy ░░░░░░░░ we don t want ░░░░░░░░ make it so hard ░░░░░░░░ them to be able ░░░░░░░░ get off the ground ░░░░░░░░ small businesses accordingly I ░░░░░░░░ that s absolutely the ░░░░░░░░ and the Fed has ░░░░░░░░ work to do I ░░░░░░░░ glad that they I ░░░░░░░░ with the notion that ░░░░░░░░ main credibility problem is ░░░░░░░░ fact that no one ░░░░░░░░ that Jay Powell is ░░░░░░░░ inflation hawk And you ░░░░░░░░ this very very timed ░░░░░░░░ no one really believes ░░░░░░░░ s going to be ░░░░░░░░ to get it under ░░░░░░░░ Today was a step ░░░░░░░░ the right direction I ░░░░░░░░ they ve got a ░░░░░░░░ further to go David ░░░░░░░░ Katherine I asked you ░░░░░░░░ change between time Powell ░░░░░░░░ just a month ago ░░░░░░░░ wasn t going to ░░░░░░░░ 75 basis points and ░░░░░░░░ and of course it ░░░░░░░░ that Biden has done ░░░░░░░░ about everything wrong I ░░░░░░░░ he s gone totally ░░░░░░░░ the idea of producing ░░░░░░░░ by threatening producers not ░░░░░░░░ energy producers but you ░░░░░░░░ meat I mean you ░░░░░░░░ it He s pointing ░░░░░░░░ finger at all the ░░░░░░░░ and he s going ░░░░░░░░ exactly the opposite direction ░░░░░░░░ now Donald Trump I ░░░░░░░░ to him about two ░░░░░░░░ three months ago He ░░░░░░░░ he could turn things ░░░░░░░░ pretty quickly by increasing ░░░░░░░░ back to energy independence ░░░░░░░░ the spigots etc But ░░░░░░░░ m just wondering in ░░░░░░░░ years so much damage ░░░░░░░░ happen It s not ░░░░░░░░ to be easy to ░░░░░░░░ this around is it ░░░░░░░░ it s not And ░░░░░░░░ re talking about the ░░░░░░░░ side which is David ░░░░░░░░ energy and food prices ░░░░░░░░ certainly if we were ░░░░░░░░ reopen the pipelines were ░░░░░░░░ to to take the ░░░░░░░░ in terms of regulation ░░░░░░░░ of the oil producers ░░░░░░░░ make the U S ░░░░░░░░ independent and a force ░░░░░░░░ be reckoned with and ░░░░░░░░ be vulnerable to you ░░░░░░░░ foreign really enemy states ░░░░░░░░ our energy needs The ░░░░░░░░ that we re knocking ░░░░░░░░ the door of Venezuela ░░░░░░░░ we could be importing ░░░░░░░░ our friendly neighbor Canada ░░░░░░░░ the north David oh ░░░░░░░░ know I know It ░░░░░░░░ just atrocious to me ░░░░░░░░ think that s the ░░░░░░░░ side Even if you ░░░░░░░░ out oil and gas ░░░░░░░░ and food prices David ░░░░░░░░ pce which is the ░░░░░░░░ the Fed most looks ░░░░░░░░ is still really really ░░░░░░░░ The it s above ░░░░░░░░ and the target is ░░░░░░░░ The fact that the ░░░░░░░░ kept juicing the labor ░░░░░░░░ for such a long ░░░░░░░░ of time I think ░░░░░░░░ puts us in a ░░░░░░░░ where salaries and pressures ░░░░░░░░ the demand front are ░░░░░░░░ the hard thing to ░░░░░░░░ bring down without economic ░░░░░░░░ So inflation is here ░░░░░░░░ stay I think it ░░░░░░░░ sticky and structural in ░░░░░░░░ And I think you ░░░░░░░░ that inflation expectation the ░░░░░░░░ if has really put ░░░░░░░░ own self of in ░░░░░░░░ difficult corner The federal ░░░░░░░░ I ll add has ░░░░░░░░ contributed to this inflationary ░░░░░░░░ with double digit fiscal ░░░░░░░░ David yes trillions upon ░░░░░░░░ of dollars in stimuli ░░░░░░░░ was meant to target ░░░░░░░░ David oh and it ░░░░░░░░ so far beyond that ░░░░░░░░ Exactly David first Biden ░░░░░░░░ rescue America plan was ░░░░░░░░ about establishing democratic principles ░░░░░░░░ policies But russ you ░░░░░░░░ we used to have ░░░░░░░░ I used to cover ░░░░░░░░ America Latin America had ░░░░░░░░ lot of enterprise zones ░░░░░░░░ those Places where all ░░░░░░░░ no taxes and no ░░░░░░░░ I think what we ░░░░░░░░ what we re going ░░░░░░░░ need after two more ░░░░░░░░ of this in America ░░░░░░░░ one big enterprise zone ░░░░░░░░ re going to have ░░░░░░░░ have a massive we ░░░░░░░░ going to have to ░░░░░░░░ this whole country into ░░░░░░░░ enterprise zone to get ░░░░░░░░ moving again no No ░░░░░░░░ are and that s ░░░░░░░░ is vitally needed And ░░░░░░░░ don t just get ░░░░░░░░ overnight It takes a ░░░░░░░░ time to cut regulations ░░░░░░░░ to reverse the damage ░░░░░░░░ this administration And so ░░░░░░░░ know we ve got ░░░░░░░░ get at that work ░░░░░░░░ soon as we possibly ░░░░░░░░ hopefully the American people ░░░░░░░░ the salve cavalry to ░░░░░░░░ able to change political ░░░░░░░░ in a way that ░░░░░░░░ can get this administration ░░░░░░░░ of office so we ░░░░░░░░ is have the stranglehold ░░░░░░░░ the economy over with ░░░░░░░░ by the way is ░░░░░░░░ center for are renewing ░░░░░░░░ coming up with specific ░░░░░░░░ that the next administration ░░░░░░░░ they re Democrat or ░░░░░░░░ can immediately put in ░░░░░░░░ We are In fact ░░░░░░░░ re working on a ░░░░░░░░ to be able to ░░░░░░░░ a handle on our ░░░░░░░░ house in order to ░░░░░░░░ able to extend the ░░░░░░░░ cuts We re working ░░░░░░░░ Larry on this These ░░░░░░░░ the things we think ░░░░░░░░ necessary to give a ░░░░░░░░ administration in a Republican ░░░░░░░░ David yeah It happened ░░░░░░░░ 1980 I remember the ░░░░░░░░ foundation had a blueprint ░░░░░░░░ what the new Reagan ░░░░░░░░ could do That blueprint ░░░░░░░░ put into effect and ░░░░░░░░ turned things around Of ░░░░░░░░ we went through an ░░░░░░░░ recession because they delayed ░░░░░░░░ tax cuts but once ░░░░░░░░ kicked in so did ░░░░░░░░ And we can do ░░░░░░░░ again Wonderful to see ░░░░░░░░ both Thank you so ░░░░░░░░ for being here appreciate ░░░░░░░░