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Bloomberg Audio Studios, podcasts, radio news. You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and five pm Eastern on Apple, Cocklay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts, or watch us live on YouTube.

It's amazing what a difference a day can make from stocks plunging into correction Toria now a territory, to two percent gains on the S and P five hundred today and a complete turnaround happening on Capitol Hill as well. This time twenty four hours ago, we were talking about how we could be barreling toward a government shutdown after the Senate Minority Leader Chuck Schumer have signaled Democrats would not be providing the votes to get over a procedural hurdle in the Senate that would be required to keep the lights on and then que this on the Senate floor just last night.

It's amazing what a difference a day can make from stocks plunging into correction Toria now a territory, to two percent gains on the S and P five hundred today and a complete turnaround happening on Capitol Hill as well. This time twenty four hours ago, we were talking about how we could be barreling toward a government shutdown after the Senate Minority Leader Chuck Schumer have signaled Democrats would not be providing the votes to get over a procedural hurdle in the Senate that would be required to keep the lights on and then que this on the Senate floor just last night.

For Donald Trump, a shutdown would be a gift. Right now. Trump owns the chaos and the government. He owns the chaos in the stock market, He owns the damage happening to our economy. It is my job to make the best choice for the country to minimize the harms to the American people. Therefore, I will vote to keep the government open and not shut it down.

For Donald Trump, a shutdown would be a gift. Right now. Trump owns the chaos and the government. He owns the chaos in the stock market, He owns the damage happening to our economy. It is my job to make the best choice for the country to minimize the harms to the American people. Therefore, I will vote to keep the government open and not shut it down.

Taking to the New York Times with an op ed as bad as passing the continuing resolution would be, Chuck Schumer writes, I believe a government shutdown is far worse. Let's bring it to Capitol Hill right now for the very latest. Jack Fitzpatrick Bloomberg, government Congress reporter, is with us live on the Hill today. Jack, of course specializes in appropriations and has been through a couple of shutdowns and a lot of threatened shutdowns. Looks like we may be averting when here, Jack, you can let us know if you see that the case. I know a lot of Democrats still plan to vote no. But the headline, Schumer caves, what change?

Taking to the New York Times with an op ed as bad as passing the continuing resolution would be, Chuck Schumer writes, I believe a government shutdown is far worse. Let's bring it to Capitol Hill right now for the very latest. Jack Fitzpatrick Bloomberg, government Congress reporter, is with us live on the Hill today. Jack, of course specializes in appropriations and has been through a couple of shutdowns and a lot of threatened shutdowns. Looks like we may be averting when here, Jack, you can let us know if you see that the case. I know a lot of Democrats still plan to vote no. But the headline, Schumer caves, what change?

The key thing that changed is that there wasn't the political will power to adopt an alternative plan. There was a push by Democrats to say to Republican Defense Hawks and Appropriations Committee members, hey, why don't we get a real funding deal or we actually do the funding bills rather than continuing things essentially on autopilot for the rest of the fiscal year. They said, let's do a one month stop gap that gives us time to do a real deal. And they held out hope for a while that enough Republicans would sign on so that they could demand an amendment vote and try to get that enacted. It just didn't come together, and there were enough Republican lawmakers who stuck together. The Republican unity overpowered the Democratic unity, and the Democrats faced the choice of either shutting the government down or signing on to this stopgap measure. They're both bad choices for Democrats, but as you heard Schumer say, a shutdown gives more unilateral authority to Trump, and they didn't want to do that.

The key thing that changed is that there wasn't the political will power to adopt an alternative plan. There was a push by Democrats to say to Republican Defense Hawks and Appropriations Committee members, hey, why don't we get a real funding deal or we actually do the funding bills rather than continuing things essentially on autopilot for the rest of the fiscal year. They said, let's do a one month stop gap that gives us time to do a real deal. And they held out hope for a while that enough Republicans would sign on so that they could demand an amendment vote and try to get that enacted. It just didn't come together, and there were enough Republican lawmakers who stuck together. The Republican unity overpowered the Democratic unity, and the Democrats faced the choice of either shutting the government down or signing on to this stopgap measure. They're both bad choices for Democrats, but as you heard Schumer say, a shutdown gives more unilateral authority to Trump, and they didn't want to do that.

Well, Jack, is interesting to hear the suggestion of democratic unity, because certainly a lot of democratic displeasure has been expressed at Schumer's decision, including just earlier today from the Speaker America Nancy Pelosi, who posted on X Let's be clear, neither is a good option referring to the cr shutdown for the American people, but this false choice that some are buying instead of fighting is unacceptable. She doesn't name Chuck Schumer, Jack, but I think the message is pretty clear considering she said she salutes Hakim Jeffries for his opposition. What riffs has this opened up in the minority?

Well, Jack, is interesting to hear the suggestion of democratic unity, because certainly a lot of democratic displeasure has been expressed at Schumer's decision, including just earlier today from the Speaker America Nancy Pelosi, who posted on X Let's be clear, neither is a good option referring to the cr shutdown for the American people, but this false choice that some are buying instead of fighting is unacceptable. She doesn't name Chuck Schumer, Jack, but I think the message is pretty clear considering she said she salutes Hakim Jeffries for his opposition. What riffs has this opened up in the minority?

You know, I've asked Senate Democrats if Chuck Schumer's position as leader is in peril or anything that dramatic, and so far the answer seems to be no, He's the leader. This is a logical choice, despite the heartburn over it. But yeah, when you hear from Nancy Pelosi that this was a false choice that they should never have gotten into. When you see Alex Andrea Acossio Cortes essentially leading a little campaign on X saying call your senators, tell them to oppose this, it does reflect the difficulties ahead, not just on this decision, but the Democratic unity or lack thereof, will be very critical when it comes to future funding negotiations, when it comes to probably the debt limit, which it does not seem likely the Republicans will be able to take care of without Democrats. So this is an early test to see how Democrats handle these big, high stake fights. And it's safe to say there is displeasure among plenty of Democratic lawmakers with the attack that Schumer has taken here.

You know, I've asked Senate Democrats if Chuck Schumer's position as leader is in peril or anything that dramatic, and so far the answer seems to be no, He's the leader. This is a logical choice, despite the heartburn over it. But yeah, when you hear from Nancy Pelosi that this was a false choice that they should never have gotten into. When you see Alex Andrea Acossio Cortes essentially leading a little campaign on X saying call your senators, tell them to oppose this, it does reflect the difficulties ahead, not just on this decision, but the Democratic unity or lack thereof, will be very critical when it comes to future funding negotiations, when it comes to probably the debt limit, which it does not seem likely the Republicans will be able to take care of without Democrats. So this is an early test to see how Democrats handle these big, high stake fights. And it's safe to say there is displeasure among plenty of Democratic lawmakers with the attack that Schumer has taken here.

Yeah, it's interesting, Jack to see the markets rallying and getting some credit for the fact that the government is not shutting down. It's just one less thing to worry about. I guess I wonder if Chuck Schumer, though, would have brought himself to this point of making the statement on the floor writing the op ed if he didn't know he had the votes. Does he have at least seven Democrats with him?

Yeah, it's interesting, Jack to see the markets rallying and getting some credit for the fact that the government is not shutting down. It's just one less thing to worry about. I guess I wonder if Chuck Schumer, though, would have brought himself to this point of making the statement on the floor writing the op ed if he didn't know he had the votes. Does he have at least seven Democrats with him?

It seems likely that he does, although the whipcount has been very difficult, which is again reflective of how tense this has been. We know that John Fetterman is really the one swing state Democrat who has said yes, I'm definitely voting in favor of this. A number of other swing state Democrats have said they're going to oppose it. It seems that the support, along with Schumer and Fetterman could come from people who don't face too much political pressure. So if they themselves get blowback, it's okay because they think it's the best thing for the party. Jack Reid has not said specifically how he's going to vote, but he said yesterday he's getting close to a vote to end debate. So if you look at somebody like Jack Reid, who's from Rhode Island, he doesn't have a tough reelection campaign. Jean Shaheen, who is not seeking reelection, also at least defended Schumer's logic on that. I think you're probably going to see the votes come from people who feel that they individually do not face too much political pressure, because there is a lot of blowback from the Democratic base over this decision.

It seems likely that he does, although the whipcount has been very difficult, which is again reflective of how tense this has been. We know that John Fetterman is really the one swing state Democrat who has said yes, I'm definitely voting in favor of this. A number of other swing state Democrats have said they're going to oppose it. It seems that the support, along with Schumer and Fetterman could come from people who don't face too much political pressure. So if they themselves get blowback, it's okay because they think it's the best thing for the party. Jack Reid has not said specifically how he's going to vote, but he said yesterday he's getting close to a vote to end debate. So if you look at somebody like Jack Reid, who's from Rhode Island, he doesn't have a tough reelection campaign. Jean Shaheen, who is not seeking reelection, also at least defended Schumer's logic on that. I think you're probably going to see the votes come from people who feel that they individually do not face too much political pressure, because there is a lot of blowback from the Democratic base over this decision.

All right, Jack Fitzpatrick of Bloomberg Government reporting on Congress Live from Capitol Hill, thank you so much.

All right, Jack Fitzpatrick of Bloomberg Government reporting on Congress Live from Capitol Hill, thank you so much.

Again.

Again.

The deadline is midnight tonight, and we are expecting those first procedural votes in the Senate could begin later on this hour. Will of course bring you the latest of what is happening on the floor. But of course, one are the fundamental reasons, Joe, why Democrats had an issue with this particular piece of legislation is in part because it doesn't necessarily have language in it that ties the president in the Trump administration to spend the money as appropriated. That's one of the things that they were pushing for.

The deadline is midnight tonight, and we are expecting those first procedural votes in the Senate could begin later on this hour. Will of course bring you the latest of what is happening on the floor. But of course, one are the fundamental reasons, Joe, why Democrats had an issue with this particular piece of legislation is in part because it doesn't necessarily have language in it that ties the president in the Trump administration to spend the money as appropriated. That's one of the things that they were pushing for.

Yep, that's right, and there are a lot of questions about what happens from here. Let's say we avoid a shutdown. To Jack's point, will there be any conversation or bipartisan approach to reconciliation, which really is a Republican matter. But when you deal with things like the debt ceiling and some very tricky issues, this is why the market is paying attention.

Yep, that's right, and there are a lot of questions about what happens from here. Let's say we avoid a shutdown. To Jack's point, will there be any conversation or bipartisan approach to reconciliation, which really is a Republican matter. But when you deal with things like the debt ceiling and some very tricky issues, this is why the market is paying attention.

Yep, and certainly paying attention. Is a member of Congress herself, Congress from Nicole Mally Takas, the Republican from New York is here with us now on Bloomberg TV and radio. Welcome back to Balance of Power, Congressome and I do wonder on the point that Democrats were making about whether or not the administration will actually find or consider itself tied to these figures in the continuing resolution. Is it your expectation that they will spend all of the money get it where it needs to go as appropriated.

Yep, and certainly paying attention. Is a member of Congress herself, Congress from Nicole Mally Takas, the Republican from New York is here with us now on Bloomberg TV and radio. Welcome back to Balance of Power, Congressome and I do wonder on the point that Democrats were making about whether or not the administration will actually find or consider itself tied to these figures in the continuing resolution. Is it your expectation that they will spend all of the money get it where it needs to go as appropriated.

Well, I think it's. Look, it gives them the flexibility that if they find savings that in the future we could rescind some of the funding that will no longer be needed to save the taxpayers money. The thing about this resolution is that it literally continues what was passed in December with some minor changes. And some of those minor changes there are increases to defense. As you know, we need to build navy ships. We need to build submarines. This is critical for our defense, particularly when communist China is so far ahead of us. It also increases funding for our veterans' health programs as well as increases military pay. And then it also does some more for border security, because that is a priority of this administration and all the Republicans in the House of Representatives. But it also increases the women and children nutritional food programs. Now, none of that is controversial, and so I feel like the Democrats actually created a political problem for themselves by coming out so strongly against what is a continuing resolution more or less what they voted for in December. They all voted for it, but somehow they wanted to say that this was partisan, that this was political, and they angered their base now when they changed course and said that they are going to support it in the end because they don't want to shut down. This was so avoidable by the Democrats. They should have just supported it as they did in December, and the government stays open. Our military, our border patrol agents, our traffic controllers get paid, and the services that our American citizens rely on continues. And so that's kind of what I don't understand why they did this, but here we are. I'm happy that they had a change of course and decide to support this because the last thing we need right now is a government shut down. We have so many other issues that we're working on, including the tax cuts that must be extended with some of the additional priorities of the President to reduce taxes for seniors and those who are working class, middle class families, and we have to avoid a debt default. We have that coming down the pike in the next couple of months. So we have a lot of things we need to work on and we can't lose focus.

Well, I think it's. Look, it gives them the flexibility that if they find savings that in the future we could rescind some of the funding that will no longer be needed to save the taxpayers money. The thing about this resolution is that it literally continues what was passed in December with some minor changes. And some of those minor changes there are increases to defense. As you know, we need to build navy ships. We need to build submarines. This is critical for our defense, particularly when communist China is so far ahead of us. It also increases funding for our veterans' health programs as well as increases military pay. And then it also does some more for border security, because that is a priority of this administration and all the Republicans in the House of Representatives. But it also increases the women and children nutritional food programs. Now, none of that is controversial, and so I feel like the Democrats actually created a political problem for themselves by coming out so strongly against what is a continuing resolution more or less what they voted for in December. They all voted for it, but somehow they wanted to say that this was partisan, that this was political, and they angered their base now when they changed course and said that they are going to support it in the end because they don't want to shut down. This was so avoidable by the Democrats. They should have just supported it as they did in December, and the government stays open. Our military, our border patrol agents, our traffic controllers get paid, and the services that our American citizens rely on continues. And so that's kind of what I don't understand why they did this, but here we are. I'm happy that they had a change of course and decide to support this because the last thing we need right now is a government shut down. We have so many other issues that we're working on, including the tax cuts that must be extended with some of the additional priorities of the President to reduce taxes for seniors and those who are working class, middle class families, and we have to avoid a debt default. We have that coming down the pike in the next couple of months. So we have a lot of things we need to work on and we can't lose focus.

Well, so does this give you hope, congresswoman, that you'll be able to work together on some of these issues or we just had a new level of dysfunction here, an impasse between the two parties. Republicans charge ahead on their own on reconciliation.

Well, so does this give you hope, congresswoman, that you'll be able to work together on some of these issues or we just had a new level of dysfunction here, an impasse between the two parties. Republicans charge ahead on their own on reconciliation.

Yeah.

Yeah.

Well, and this was a perfect example because when it was voted for in December, it was bipartisan. We had the Republicans control on the House, but you had the Democrats controlling the Senate, and you had Joe Biden to the White House. So this was a bipartisan resolution. That we have now continued for a six month period. I think that, look, there's some opportunities obviously to work with the Democrats. But if they want to join us in actually right sizing government, making it work for the people, they want to give money back to the taxpayers, if they want to reduce taxes for our seniors on Social Security, you know, there's plenty of opportunities to work together. I just don't know that they will support anything that Republicans come up with, simply because the Republicans came up with it, and so, you know, maybe I'm a remember of the problem solveros Caucus, and so I have hope that we can work in a bipartisan fashion. We've seen it happen in the past, and hopefully we'll see see that come together. I think the more important thing with the Reconciliation package is it can pass among with just Republican votes. So I think the important thing is to figure out where we are as a conference and work with each other first and try to come up with something that we can pass, and then hope that the Democrats will join us, because it's the right policy for this country for the economy. Look, we cannot allow the tax cuts to expire. That's a four and a half trillion dollar increase. You'll see corporate rates go up, personal income rates go up, child tax credit will be cut in half, the standard deduction will be cut in half, the altern to minimum tax will return. That will be terrible for our economy. Whether you're a business or a family, it would be bad. And so you know, hopefully the Democrats will work with us to prevent that from happening.

Well, and this was a perfect example because when it was voted for in December, it was bipartisan. We had the Republicans control on the House, but you had the Democrats controlling the Senate, and you had Joe Biden to the White House. So this was a bipartisan resolution. That we have now continued for a six month period. I think that, look, there's some opportunities obviously to work with the Democrats. But if they want to join us in actually right sizing government, making it work for the people, they want to give money back to the taxpayers, if they want to reduce taxes for our seniors on Social Security, you know, there's plenty of opportunities to work together. I just don't know that they will support anything that Republicans come up with, simply because the Republicans came up with it, and so, you know, maybe I'm a remember of the problem solveros Caucus, and so I have hope that we can work in a bipartisan fashion. We've seen it happen in the past, and hopefully we'll see see that come together. I think the more important thing with the Reconciliation package is it can pass among with just Republican votes. So I think the important thing is to figure out where we are as a conference and work with each other first and try to come up with something that we can pass, and then hope that the Democrats will join us, because it's the right policy for this country for the economy. Look, we cannot allow the tax cuts to expire. That's a four and a half trillion dollar increase. You'll see corporate rates go up, personal income rates go up, child tax credit will be cut in half, the standard deduction will be cut in half, the altern to minimum tax will return. That will be terrible for our economy. Whether you're a business or a family, it would be bad. And so you know, hopefully the Democrats will work with us to prevent that from happening.

Well, so, Congressman, obviously you have a seat on the Ways and Means Committee, can you shed some light as to what forward progress has been made on the actual crafting of the tax portion of the reconciliation bill. Is everything the President asks for right now at least included in the outline. Are are you having discussions around compromises.

Well, so, Congressman, obviously you have a seat on the Ways and Means Committee, can you shed some light as to what forward progress has been made on the actual crafting of the tax portion of the reconciliation bill. Is everything the President asks for right now at least included in the outline. Are are you having discussions around compromises.

Well, it's all on the table. We're been going through every single provision, both from the individual standpoint to the corporate to the green energy credits that Joe Biden had offered. We're going through it all and we're getting consensus on where our members stand on these issues. We can't craft the tax bill yet because we don't have the budget resolution back from the Senate. So we really don't know what the top line will be. The House gave the Ways and Means Committee four and a half trillion dollars which we can extend the existing tax cuts from twenty seventeen, and then we can incorporate some of the new provisions that the President wants when it comes to the seniors and tipped workers and over time within those parameters. If with parameters, rather can't do it unlimited, but I think that we can come up with a very good product. And what we've been doing now is actually, you know, crunching those numbers, seeing what parameters could potentially work, where we would get these offsets, the offsets for these provisions, and we're kind of going through that process now so we know what's on the menu. And then when we get the top line from the Senate and that resolution passes both houses, then we can actually go and begin drafting the legislation with certainty on which provisions would be included in which wouldn't.

Well, it's all on the table. We're been going through every single provision, both from the individual standpoint to the corporate to the green energy credits that Joe Biden had offered. We're going through it all and we're getting consensus on where our members stand on these issues. We can't craft the tax bill yet because we don't have the budget resolution back from the Senate. So we really don't know what the top line will be. The House gave the Ways and Means Committee four and a half trillion dollars which we can extend the existing tax cuts from twenty seventeen, and then we can incorporate some of the new provisions that the President wants when it comes to the seniors and tipped workers and over time within those parameters. If with parameters, rather can't do it unlimited, but I think that we can come up with a very good product. And what we've been doing now is actually, you know, crunching those numbers, seeing what parameters could potentially work, where we would get these offsets, the offsets for these provisions, and we're kind of going through that process now so we know what's on the menu. And then when we get the top line from the Senate and that resolution passes both houses, then we can actually go and begin drafting the legislation with certainty on which provisions would be included in which wouldn't.

Fis Mamalia Takas. We tend to talk about an important issue for you, which is border security, immigration, and we're going to be hearing from President Trump a bit later on today at the Department of Justice. There is reporting that he is expected to invoke the Alien Enemies Act, which is something he's talked about before, to cover this plan for mass deportations. This is something that's not been used since World War Two. It's to detain and deport the natives and citizens of an enemy nation. If you support mass deportations, is this the way to go about doing it.

Fis Mamalia Takas. We tend to talk about an important issue for you, which is border security, immigration, and we're going to be hearing from President Trump a bit later on today at the Department of Justice. There is reporting that he is expected to invoke the Alien Enemies Act, which is something he's talked about before, to cover this plan for mass deportations. This is something that's not been used since World War Two. It's to detain and deport the natives and citizens of an enemy nation. If you support mass deportations, is this the way to go about doing it.

I think we need to focus on the people who are committing crimes in this country. I don't support just tossing people out of the country. We need to actually go after to the people who are committing crimes, who are hurting others. We've seen a lot of this happening in New York City. New York City has been the poster child, sadly for the gang members, the drug tach traffickers, and other criminals wreaking havoc. The President has done an amazing job focusing resources on getting thousands of criminals off the streets of New York and our country. They even deported a murderer the other day from the Dominican Republic who was wanted in his homeland. That is outrageous. And the fact that the Biden administration and the Democrats who represent New York City allowed that to even happen. That these people were not only being harbored here, they are given free luxury hotel rooms at the expense of we the people. That should have never happened. And I'm glad that President Trump is taking action, but we have to be cautious here. Immigration obviously is a very important issue. We need immigrants for our economy. We need to make sure we're doing this the right way, and we do need to give people an opportunity to become citizens if they followed the rules and our laws. My office, I'm very proud by the way New York City probably helped more people become US citizens. People that were caught in the bureaucracy in the red tape, they came legally, they did everything right, and we help them become United States citizens. I'm very proud of that. I'm the daughter of immigrants myself. So we have to have a very clear line between people who are here doing the wrong thing, committing crimes and taking advantage of America's generosity, and those who are here to contribute, work hard, and be productive members of our society.

I think we need to focus on the people who are committing crimes in this country. I don't support just tossing people out of the country. We need to actually go after to the people who are committing crimes, who are hurting others. We've seen a lot of this happening in New York City. New York City has been the poster child, sadly for the gang members, the drug tach traffickers, and other criminals wreaking havoc. The President has done an amazing job focusing resources on getting thousands of criminals off the streets of New York and our country. They even deported a murderer the other day from the Dominican Republic who was wanted in his homeland. That is outrageous. And the fact that the Biden administration and the Democrats who represent New York City allowed that to even happen. That these people were not only being harbored here, they are given free luxury hotel rooms at the expense of we the people. That should have never happened. And I'm glad that President Trump is taking action, but we have to be cautious here. Immigration obviously is a very important issue. We need immigrants for our economy. We need to make sure we're doing this the right way, and we do need to give people an opportunity to become citizens if they followed the rules and our laws. My office, I'm very proud by the way New York City probably helped more people become US citizens. People that were caught in the bureaucracy in the red tape, they came legally, they did everything right, and we help them become United States citizens. I'm very proud of that. I'm the daughter of immigrants myself. So we have to have a very clear line between people who are here doing the wrong thing, committing crimes and taking advantage of America's generosity, and those who are here to contribute, work hard, and be productive members of our society.

Yeah, I appreciate that answer. Congress Woman Nicole Malia Takas, Republican from New York's eleventh Districts back with us here on Bloomberg TV and Radio. I'm Joe, Matthew and Washington alongside Kaylee Lions will assemble our signature panel. Next, Gdi Shanzano and Rick Davis are with us as we look ahead to a midnight funding deadline and apparently no government shut down on the works. Minority Leader Chuck Schumer says he's on board and ready to vote yes. We'll have more ahead Right here on Bloomberg.

Yeah, I appreciate that answer. Congress Woman Nicole Malia Takas, Republican from New York's eleventh Districts back with us here on Bloomberg TV and Radio. I'm Joe, Matthew and Washington alongside Kaylee Lions will assemble our signature panel. Next, Gdi Shanzano and Rick Davis are with us as we look ahead to a midnight funding deadline and apparently no government shut down on the works. Minority Leader Chuck Schumer says he's on board and ready to vote yes. We'll have more ahead Right here on Bloomberg.

You're listening to the Bloomberg Bells of Power podcast. Catch us live weekdays at noon and five pm. He's durn on Apple Cocklay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station Just Say Alexa played Bloomberg eleven thirty.

You're listening to the Bloomberg Bells of Power podcast. Catch us live weekdays at noon and five pm. He's durn on Apple Cocklay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station Just Say Alexa played Bloomberg eleven thirty.

Here in Washington, we are on watch this hour for a vote on the Senate floor, the first procedural vote that is needed in order to try to advance the legislation that could see the government stay open beyond midnight tonight if all goes according to plan, Although the plan has changed in the last twenty four hours at least four Democrats in the Senate Minority. First, the Senate Minority Leader, Chuck Schumer, of course, said they would not be providing the votes necessary to get to sixty on the Senate floor. He then had a big about face on the Senate floor last night, saying that while this CR is bad, a shutdown would be worse, and that is why Schumer has come out and said he will support the continuing Resolution. The question is whether there are six other Democrats if you include him along with Senator John Fetterman of Pennsylvania, to go along with this considering many other Democrats are angry about the U turn, including Progressive Congressoman Alexandria Cossio Cortez of New York, who had this to say on CNN last night.

Here in Washington, we are on watch this hour for a vote on the Senate floor, the first procedural vote that is needed in order to try to advance the legislation that could see the government stay open beyond midnight tonight if all goes according to plan, Although the plan has changed in the last twenty four hours at least four Democrats in the Senate Minority. First, the Senate Minority Leader, Chuck Schumer, of course, said they would not be providing the votes necessary to get to sixty on the Senate floor. He then had a big about face on the Senate floor last night, saying that while this CR is bad, a shutdown would be worse, and that is why Schumer has come out and said he will support the continuing Resolution. The question is whether there are six other Democrats if you include him along with Senator John Fetterman of Pennsylvania, to go along with this considering many other Democrats are angry about the U turn, including Progressive Congressoman Alexandria Cossio Cortez of New York, who had this to say on CNN last night.

I think that what we need right now is a United Senate Democratic caucus that can stand up for this country and not vote for cloture and not vote for this bill. And I cannot urge enough how bad of an idea it is to empower and enable Donald Trump and Elon Musk in this moment. It is dangerous and it is reckless.

I think that what we need right now is a United Senate Democratic caucus that can stand up for this country and not vote for cloture and not vote for this bill. And I cannot urge enough how bad of an idea it is to empower and enable Donald Trump and Elon Musk in this moment. It is dangerous and it is reckless.

On the other side of the argument, Chuck Schumer again in an op ed in the New York Times. As bad as passing the continuing Resolution would be, I believe government shutdown is far worse. And that's where we start with our signature panel this hour. Rick Davis and Genie Shanzano are with us here on the Friday edition. Geny is our democratic strategist, political science professor at Iona University. Rickus partner at Stone Court Capital, and our Republican strategist. Where are we here, Jeanie? We keep having Republicans tell us that Democrats are in disarray. Obviously, Chuck Schumer is not going to have the full support of his membership in the Senate. Will we avoid a shutdown?

On the other side of the argument, Chuck Schumer again in an op ed in the New York Times. As bad as passing the continuing Resolution would be, I believe government shutdown is far worse. And that's where we start with our signature panel this hour. Rick Davis and Genie Shanzano are with us here on the Friday edition. Geny is our democratic strategist, political science professor at Iona University. Rickus partner at Stone Court Capital, and our Republican strategist. Where are we here, Jeanie? We keep having Republicans tell us that Democrats are in disarray. Obviously, Chuck Schumer is not going to have the full support of his membership in the Senate. Will we avoid a shutdown?

We still don't know. I think we likely will. I said yesterday this was a Hobson's choice. It is a horrible position for the Democrats to be in. I do think Chuck Schumer is making the right call here. But there is another problem, and that is that many, many Democrats do not think Chuck Schumer is the right leader for this moment. And I will just give you one example. A lot of young Democrats out there feel and have mocked widely his attempts to protest at the Treasury Department the other day. They feel strongly that the Democratic leadership has led them down, or let them down rather, and Chuck Schumer sort of epitomizes that. So while I do think the decision on this vote is correct, it is a bitter pill for him to swallow for Democrats, and I don't think they want Chuck Schumer leading them in the near future. And of course, not to forget, AOC is considering a primary challenge to Chuck Schumer in the coming years, and that is something she may very well do if she doesn't have her sight set on the White House.

We still don't know. I think we likely will. I said yesterday this was a Hobson's choice. It is a horrible position for the Democrats to be in. I do think Chuck Schumer is making the right call here. But there is another problem, and that is that many, many Democrats do not think Chuck Schumer is the right leader for this moment. And I will just give you one example. A lot of young Democrats out there feel and have mocked widely his attempts to protest at the Treasury Department the other day. They feel strongly that the Democratic leadership has led them down, or let them down rather, and Chuck Schumer sort of epitomizes that. So while I do think the decision on this vote is correct, it is a bitter pill for him to swallow for Democrats, and I don't think they want Chuck Schumer leading them in the near future. And of course, not to forget, AOC is considering a primary challenge to Chuck Schumer in the coming years, and that is something she may very well do if she doesn't have her sight set on the White House.

So, Rick, how bad of a miscalculation was this here? Because would it feels as difficult optically for Chuck Schumer if he hadn't just before saying he would vote for the continuing Resolution go to the floor and say Republicans don't have the votes, the Democrats won't support it. Why do the first part if you were then going to flip in round two?

So, Rick, how bad of a miscalculation was this here? Because would it feels as difficult optically for Chuck Schumer if he hadn't just before saying he would vote for the continuing Resolution go to the floor and say Republicans don't have the votes, the Democrats won't support it. Why do the first part if you were then going to flip in round two?

Yeah, Yeah, that's a really good question, Kaylee.

Yeah, Yeah, that's a really good question, Kaylee.

It's unexplainable.

It's unexplainable.

Once this bill passed the House of Representatives, it was destined to pass the Senate. The House of Representative went out of town, which meant that if they did not pass exactly this bill, then there was a government shutdown prima facie. Right, House wasn't going to drop everything they were doing in their districts and returned up back to vote on a new bill by the Senate. So there was really only one pathway here, and that was always to support this bill. It is not a substantially different bill than what had passed, you know, earlier in the year, and what had passed the year, you know, like at the end of last year. I mean, we keep kicking the can. Don't get me started about where the twelve appropriations bills for f y twenty five, because you know, you'd have a different conversation about the lack of leadership in Congress. But the bottom line is, I don't think this is the right fight. I mean, as wants to pick a fight, what's her plan? Don't agree to any continuing resolution. She didn't put forth an idea that said, here's the only continuing resolution I'd be willing to support. She's you know, her party supported this last time, her presidence signed this in the law.

Once this bill passed the House of Representatives, it was destined to pass the Senate. The House of Representative went out of town, which meant that if they did not pass exactly this bill, then there was a government shutdown prima facie. Right, House wasn't going to drop everything they were doing in their districts and returned up back to vote on a new bill by the Senate. So there was really only one pathway here, and that was always to support this bill. It is not a substantially different bill than what had passed, you know, earlier in the year, and what had passed the year, you know, like at the end of last year. I mean, we keep kicking the can. Don't get me started about where the twelve appropriations bills for f y twenty five, because you know, you'd have a different conversation about the lack of leadership in Congress. But the bottom line is, I don't think this is the right fight. I mean, as wants to pick a fight, what's her plan? Don't agree to any continuing resolution. She didn't put forth an idea that said, here's the only continuing resolution I'd be willing to support. She's you know, her party supported this last time, her presidence signed this in the law.

So I don't know.

So I don't know.

I mean, I think this has much to do about nothing I think this is AOC. She must have heard our program when I said last week that she's all but disappeared. Boom right back into it. So I think this is just grandstanding.

I mean, I think this has much to do about nothing I think this is AOC. She must have heard our program when I said last week that she's all but disappeared. Boom right back into it. So I think this is just grandstanding.

Well, okay, is it disingenuous here, Genie? What does it tell us about all of the fights that have yet to take place? We're just scratching the surface on a cr here. You've got Trump tax cuts, the debt limit, and a lot of other issues coming down the pipe on the Capitol Hill here. What does it mean for those.

Well, okay, is it disingenuous here, Genie? What does it tell us about all of the fights that have yet to take place? We're just scratching the surface on a cr here. You've got Trump tax cuts, the debt limit, and a lot of other issues coming down the pipe on the Capitol Hill here. What does it mean for those.

Yeah, we've only just begun, Joe, That's what it means. And you know, to pour salt into the wound. Donald Trump took to truth Social just a little bit ago to congratulate Chuck Schumer on doing the right thing. That's also bitter for Chuck Schumer. And you know, I don't think that, you know, AOC Alexander Casio Cortes is being disingenuous. I think she is reflecting an enormous divide in the party. Much of that is again generational, even though Killy, You're right, we saw and I was surprised Nancy Pelosi come out and support wing of the party in this approach.

Yeah, we've only just begun, Joe, That's what it means. And you know, to pour salt into the wound. Donald Trump took to truth Social just a little bit ago to congratulate Chuck Schumer on doing the right thing. That's also bitter for Chuck Schumer. And you know, I don't think that, you know, AOC Alexander Casio Cortes is being disingenuous. I think she is reflecting an enormous divide in the party. Much of that is again generational, even though Killy, You're right, we saw and I was surprised Nancy Pelosi come out and support wing of the party in this approach.

But to Rick's point, they have no plan.

But to Rick's point, they have no plan.

This is essentially the same bill they voted for, to the representative's point in December when it was Joe Biden's bill, And so it's bitter to swallow. But Chuck Schumer is right on this. He just may not be the right person to lead this caucus forward.

This is essentially the same bill they voted for, to the representative's point in December when it was Joe Biden's bill, And so it's bitter to swallow. But Chuck Schumer is right on this. He just may not be the right person to lead this caucus forward.

Well, and Genie, I do wonder what opportunities there will be for real leadership of any kind of resistance after this if the government's funded until September thirtieth, and Republicans are planning on getting Trump's agenda through on party line budget reconciliation legislation, where do you resist next?

Well, and Genie, I do wonder what opportunities there will be for real leadership of any kind of resistance after this if the government's funded until September thirtieth, and Republicans are planning on getting Trump's agenda through on party line budget reconciliation legislation, where do you resist next?

Well, this is the thing, you know, Democrats have to realize their next big shot is the midterm. They really do need to hold their fire. And Chuck Schumer is trying to say this last night, which was essentially the all of the negative coverage that Donald Trump is getting for the markets and everything else. Does Elon Musk We should not step into this, and that is an old rule of politics. When your opposition is having a difficult time, don't make yourself the story, especially if there is no plan to get out of this. And how can Democrats fight about them shutting down the government when they're voting to shut down the government. Again, not a good option. But Democrats need to focus on the midterm election, where they may well pick up seats at least in the House and take back that branch of government. If they shut down the government, who knows how much attention negative that would go their way and that would be really difficult for them.

Well, this is the thing, you know, Democrats have to realize their next big shot is the midterm. They really do need to hold their fire. And Chuck Schumer is trying to say this last night, which was essentially the all of the negative coverage that Donald Trump is getting for the markets and everything else. Does Elon Musk We should not step into this, and that is an old rule of politics. When your opposition is having a difficult time, don't make yourself the story, especially if there is no plan to get out of this. And how can Democrats fight about them shutting down the government when they're voting to shut down the government. Again, not a good option. But Democrats need to focus on the midterm election, where they may well pick up seats at least in the House and take back that branch of government. If they shut down the government, who knows how much attention negative that would go their way and that would be really difficult for them.

I mentioned earlier in our first hour, Rick, I saw a lot of signs coming into work this morning. There were protesters scattered around a number of agencies, including the Department of Justice. Signs said fire elon and sell you tesla. There's a lot of outrage, and we've talked about this when it comes to town hall meetings that some lawmakers are now hearing not even so much about what the doge is doing, but how it's really boiled over, as you might have seen on social media in a town hall session with North Carolina Republican Chuck Edwards. Let's give everyone a taste and have you respond.

I mentioned earlier in our first hour, Rick, I saw a lot of signs coming into work this morning. There were protesters scattered around a number of agencies, including the Department of Justice. Signs said fire elon and sell you tesla. There's a lot of outrage, and we've talked about this when it comes to town hall meetings that some lawmakers are now hearing not even so much about what the doge is doing, but how it's really boiled over, as you might have seen on social media in a town hall session with North Carolina Republican Chuck Edwards. Let's give everyone a taste and have you respond.

I have supported, even as a state senator, the fact that we should abolish the US Department of Education. The decisions need to be kay. So, first of all, there have been no cuts to the staff via as in this point, and you certainly will have the right in the next election to cast your vote based off of what you hear coming from you now.

I have supported, even as a state senator, the fact that we should abolish the US Department of Education. The decisions need to be kay. So, first of all, there have been no cuts to the staff via as in this point, and you certainly will have the right in the next election to cast your vote based off of what you hear coming from you now.

Like him or not.

Like him or not.

Elon Musk has brought a lot of really smart people to those I was proud to vote recently for the House Budget Resolution, which provides the framework.

Elon Musk has brought a lot of really smart people to those I was proud to vote recently for the House Budget Resolution, which provides the framework.

Yep.

Yep.

And you wonder why.

And you wonder why.

Folks don't want to do these town halls, hm, Rick Davis, This is bringing me back to Obamacare summer. Here, things got so tough in the room. Security had to escort the congressman out for his own safety. This is why many Republican lawmakers are being told not to hold town halls. What does it tell us about this moment in time?

Folks don't want to do these town halls, hm, Rick Davis, This is bringing me back to Obamacare summer. Here, things got so tough in the room. Security had to escort the congressman out for his own safety. This is why many Republican lawmakers are being told not to hold town halls. What does it tell us about this moment in time?

Yeah, evidently Chuck didn't get the memo. Yeah, look, I mean it's it's it's stoking excitement, you know in voters what's happening in Washington. And you know, there's a part of me, as an organizer, who thinks that's really good. Right. People are engaged, they're coming to these town halls, they're making their voices known.

Yeah, evidently Chuck didn't get the memo. Yeah, look, I mean it's it's it's stoking excitement, you know in voters what's happening in Washington. And you know, there's a part of me, as an organizer, who thinks that's really good. Right. People are engaged, they're coming to these town halls, they're making their voices known.

That's what they're for. Uh.

That's what they're for. Uh.

And and we we can learn a lot from what just played on the radio or TV just now, especially with all the bleeping. You don't hear that on Bloomberg very often. And so look, I think that temperatures are running high in the country. It's a divided country, uh And and and even within the Republican Party, I think there's a lot of support for the reducing the size of government, but probably not how it's been done. And I'd argue that within the independent movement there's probably a lot of, you know, favoritism toward the idea that government is part of the problem.

And and we we can learn a lot from what just played on the radio or TV just now, especially with all the bleeping. You don't hear that on Bloomberg very often. And so look, I think that temperatures are running high in the country. It's a divided country, uh And and and even within the Republican Party, I think there's a lot of support for the reducing the size of government, but probably not how it's been done. And I'd argue that within the independent movement there's probably a lot of, you know, favoritism toward the idea that government is part of the problem.

And and and.

And and and.

Elon Musk and those guys are trying to do something about it, but there's probably unanimity, you know, in the fact that the way they're doing it is not right. And so the process always matters in Washington. The outcomes sometimes rarely matter because there are so few of them. And I think this is a process problem that this administration has, and it goes beyond Doge. And I think, you know, people are going to start talking about competency soon if this continues.

Elon Musk and those guys are trying to do something about it, but there's probably unanimity, you know, in the fact that the way they're doing it is not right. And so the process always matters in Washington. The outcomes sometimes rarely matter because there are so few of them. And I think this is a process problem that this administration has, and it goes beyond Doge. And I think, you know, people are going to start talking about competency soon if this continues.

Genie, we have less than a minute left. But do you have a reaction to the expletive leaden town hall for Chuck Edwards?

Genie, we have less than a minute left. But do you have a reaction to the expletive leaden town hall for Chuck Edwards?

I do.

I do.

I think this is precisely what Chuck Schumer was trying to say, that Democrats should let Republicans feel this fire because on the ground it is visceral. That's why Republican leadership told Republicans not to go out and hold town halls. It's not a good position for Republicans to come to have to be in. Let them own it. That's what Democrats should do. Sit back and let.

I think this is precisely what Chuck Schumer was trying to say, that Democrats should let Republicans feel this fire because on the ground it is visceral. That's why Republican leadership told Republicans not to go out and hold town halls. It's not a good position for Republicans to come to have to be in. Let them own it. That's what Democrats should do. Sit back and let.

Them own it.

Them own it.

And they keep stepping on this message, which is where Chuck Schumer messed up the other day. He should have just said this is going to go forward and let Republicans feel this heat.

And they keep stepping on this message, which is where Chuck Schumer messed up the other day. He should have just said this is going to go forward and let Republicans feel this heat.

All right, So there's irritation among Republicans, irritation among Democrats. Just another week in Washington. Jeanie Schanzeno and Rick Davis, our signature political panel, think you so much for joining us. They'll of course be back for more on the late edition of Balance of Power at five pm Eastern time. But just ahead, we'll have kay Bailey Hutchison, the former US Ambassador to NATO, join us this hour on Bloomberg TV and radio.

All right, So there's irritation among Republicans, irritation among Democrats. Just another week in Washington. Jeanie Schanzeno and Rick Davis, our signature political panel, think you so much for joining us. They'll of course be back for more on the late edition of Balance of Power at five pm Eastern time. But just ahead, we'll have kay Bailey Hutchison, the former US Ambassador to NATO, join us this hour on Bloomberg TV and radio.

You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and five PM Eastern on Apple Cocklay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts, or watch US live on YouTube.

You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and five PM Eastern on Apple Cocklay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts, or watch US live on YouTube.

All of this happening against the backdrop of ongoing conversations between the US and Russia and of course the US and Ukraine as they make efforts toward reaching some kind of ceasefire agreement and joining US Now with more as a former ambassador to NATO herself also former US Senator from Texas, Kay Bailey Hutchison with US on Bloomberg TV and Radio. Ambassador, Welcome back to Balance of Power. I'm sure you've been tracking the developments over the last few days, including the conversation that Secretary General Ruta had with President Trump in the Oval Office yesterday. Are you encouraged by what you're seeing? Do you think a truce agreement is eminent?

All of this happening against the backdrop of ongoing conversations between the US and Russia and of course the US and Ukraine as they make efforts toward reaching some kind of ceasefire agreement and joining US Now with more as a former ambassador to NATO herself also former US Senator from Texas, Kay Bailey Hutchison with US on Bloomberg TV and Radio. Ambassador, Welcome back to Balance of Power. I'm sure you've been tracking the developments over the last few days, including the conversation that Secretary General Ruta had with President Trump in the Oval Office yesterday. Are you encouraged by what you're seeing? Do you think a truce agreement is eminent?

I do think we're now in that time when I believe it will come together. It's shocking that Putin would say, well, we're doing better, so we're not going to sign a ceasefire, so we're taking more territory. Well, you know, it's time for Putin to really come around and get serious about this and I think that's what I was very pleased to hear Secretary General Ruta say that everyone is together on this and we need to go forward together.

I do think we're now in that time when I believe it will come together. It's shocking that Putin would say, well, we're doing better, so we're not going to sign a ceasefire, so we're taking more territory. Well, you know, it's time for Putin to really come around and get serious about this and I think that's what I was very pleased to hear Secretary General Ruta say that everyone is together on this and we need to go forward together.

Well, Ambassador, we're hearing from Vladimir Putin and from Moscow conditions that are simply unacceptable to Ukraine, including freezing all of lines where they are in place now, essentially giving the Dunboss Primea and the rest formally to Russia. There's also news today in the Washington Post multiple classified US intelligence reports casting doubt on Putin's willingness to end the war against Ukraine. Can we take him seriously as an actor at the negotiating table.

Well, Ambassador, we're hearing from Vladimir Putin and from Moscow conditions that are simply unacceptable to Ukraine, including freezing all of lines where they are in place now, essentially giving the Dunboss Primea and the rest formally to Russia. There's also news today in the Washington Post multiple classified US intelligence reports casting doubt on Putin's willingness to end the war against Ukraine. Can we take him seriously as an actor at the negotiating table.

I think we can take him seriously, and I think seriously means to understand that he has used terrorist tactics against the prisoners of war, shooting them in the heads, innocent civilians, bombing the infrastructure, and kidnapping thousands of children to indoctrinate them into the Russian language and families. So yeah, we can take him seriously. But we're dealing with a despot. We're dealing with a person that we're going to have to play hardball with with along with Ukraine and all of our European allies. And absolutely we should take him seriously. We should start playing hardball with him. Just as it has been very difficult for Ukraine to accept the predicament they're in, but they're coming to the table. It's time for Russia to get serious.

I think we can take him seriously, and I think seriously means to understand that he has used terrorist tactics against the prisoners of war, shooting them in the heads, innocent civilians, bombing the infrastructure, and kidnapping thousands of children to indoctrinate them into the Russian language and families. So yeah, we can take him seriously. But we're dealing with a despot. We're dealing with a person that we're going to have to play hardball with with along with Ukraine and all of our European allies. And absolutely we should take him seriously. We should start playing hardball with him. Just as it has been very difficult for Ukraine to accept the predicament they're in, but they're coming to the table. It's time for Russia to get serious.

Well.

Well.

One of the things that Russia has suggested is that they will not tolerate the presence of NATO troops in Ukraine, even if it's what's constituting a peacekeeping force. Ambassador, do you believe anything other than NATO affiliated troops can actually keep a credible peace?

One of the things that Russia has suggested is that they will not tolerate the presence of NATO troops in Ukraine, even if it's what's constituting a peacekeeping force. Ambassador, do you believe anything other than NATO affiliated troops can actually keep a credible peace?

Well, I think NATO troops will be the ones, because we are the security alliance and the security trained people. Maybe it's not under a NATO banner, maybe it's on a different.

Well, I think NATO troops will be the ones, because we are the security alliance and the security trained people. Maybe it's not under a NATO banner, maybe it's on a different.

But from a NATO country's a.

But from a NATO country's a.

Coalition of the willing, but it will be the European troops. It's all a negotiation where we would be if we would be helpful, but not on the ground or if you know, I think the proposition that we would do air cover as we did in Afghanistan, helping the Afghans as they were fighting for their country, we can provide air cover for Ukraine to stay peaceful. That's on the negotiating table that hasn't been decided, but I think there are many configurations for peacekeepers and it would be a coalition of the willing.

Coalition of the willing, but it will be the European troops. It's all a negotiation where we would be if we would be helpful, but not on the ground or if you know, I think the proposition that we would do air cover as we did in Afghanistan, helping the Afghans as they were fighting for their country, we can provide air cover for Ukraine to stay peaceful. That's on the negotiating table that hasn't been decided, but I think there are many configurations for peacekeepers and it would be a coalition of the willing.

Donald Trump, as a candidate, said he would end this war on day one, Ambassador, he said that for more than a year on the campaign trail. That's clearly not the case. What is the realistic timeline for these negotiations to proceed?

Donald Trump, as a candidate, said he would end this war on day one, Ambassador, he said that for more than a year on the campaign trail. That's clearly not the case. What is the realistic timeline for these negotiations to proceed?

Well, I think we're in the timeline where Russia's got to come to the table and we're going to have to play hardball with Russia, just as hardball has been played with Ukraine. And I think US and certainly our NATO allies are trying to be helpful. But I think that this is the time to call Putin's hand and say, okay, we have set this up. We are going to be a neutral player. But that means it takes two to tango.

Well, I think we're in the timeline where Russia's got to come to the table and we're going to have to play hardball with Russia, just as hardball has been played with Ukraine. And I think US and certainly our NATO allies are trying to be helpful. But I think that this is the time to call Putin's hand and say, okay, we have set this up. We are going to be a neutral player. But that means it takes two to tango.

Well, we've certainly heard it takes two to tango from President Trump in recent days, Ambassador. We've also heard him make some suggestions that have caused people to question the US commitment to Article five of NATO. Suggestions and this is a quote, if you're not going to pay, we're not going to defend. If you're not going to pay your bills, we're not going to defend you. Are such suggestions detrimental to what the US is trying to achieve and haveing credible negotiations with Russia?

Well, we've certainly heard it takes two to tango from President Trump in recent days, Ambassador. We've also heard him make some suggestions that have caused people to question the US commitment to Article five of NATO. Suggestions and this is a quote, if you're not going to pay, we're not going to defend. If you're not going to pay your bills, we're not going to defend you. Are such suggestions detrimental to what the US is trying to achieve and haveing credible negotiations with Russia?

Well, no, I don't think the NATO issue and our commitments that NATO are on the table for Russia because they have nothing to do with NATO or with our commitments. I thought the meeting.

Well, no, I don't think the NATO issue and our commitments that NATO are on the table for Russia because they have nothing to do with NATO or with our commitments. I thought the meeting.

If the President suggests the US wouldn't come to the defense of a NATO country that maybe closer to Russia that they could look at next after Ukraine, does that not encourage potentially bad behavior.

If the President suggests the US wouldn't come to the defense of a NATO country that maybe closer to Russia that they could look at next after Ukraine, does that not encourage potentially bad behavior.

No.

No.

I don't think that that was ever a serious suggestion that we would not come abide by Article five. Article five has only been invoked once in the history of the seventy five years, and that was on behalf of the United States after nine to eleven. So I believe that Article five is in violate. Certainly, the meeting today with Secretary Ruta and the previous ones with Secretary General Stoltenberg were very clear that Trump is not walking away from NATO. He knows that we are committed as an alliance. We have a treaty saying if any NATO country is invaded that it would be a war that we would all fight together as they came together for the United States. Of course, Ukraine is not a NATO country, but I think that eventually we have to have the peace. We have to start helping Ukraine and ask I think part of the negotiations to be asking Russia to pay reparations for all the damage they've done the Ukraine. They should be the ones to rebuild it. But those are all negotiating events that must be dressed, and I think the NATO is solid. I think Secretary General Ambassador.

I don't think that that was ever a serious suggestion that we would not come abide by Article five. Article five has only been invoked once in the history of the seventy five years, and that was on behalf of the United States after nine to eleven. So I believe that Article five is in violate. Certainly, the meeting today with Secretary Ruta and the previous ones with Secretary General Stoltenberg were very clear that Trump is not walking away from NATO. He knows that we are committed as an alliance. We have a treaty saying if any NATO country is invaded that it would be a war that we would all fight together as they came together for the United States. Of course, Ukraine is not a NATO country, but I think that eventually we have to have the peace. We have to start helping Ukraine and ask I think part of the negotiations to be asking Russia to pay reparations for all the damage they've done the Ukraine. They should be the ones to rebuild it. But those are all negotiating events that must be dressed, and I think the NATO is solid. I think Secretary General Ambassador.

Thank you, Kay Bailey Hutchison, former Ambassador to NATO, former Senator. We always wish we had more time.

Thank you, Kay Bailey Hutchison, former Ambassador to NATO, former Senator. We always wish we had more time.

You're listening to the Bloomberg Balance of Power podcasts. Catch us live weekdays at noon and five pm e s durn on applecar. I'm playing Android Otto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station Just Say Alexa played Bloomberg eleven thirty.

You're listening to the Bloomberg Balance of Power podcasts. Catch us live weekdays at noon and five pm e s durn on applecar. I'm playing Android Otto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station Just Say Alexa played Bloomberg eleven thirty.

We're watching Wall Street Big Bounce Back. We'll see if this can hold a lot of people trying to call the bottom right now, with really not much less uncertainty than we had a day ago. But we did check one box late last night courtesy of Chuck Schumer, who's having a day now. We heard about that maybe thirty hours beforehand. I think Mike Dorning said his opposition to this continuing resolution, he was going to have all Democrats vote no, and the government was going to shut down tonight. Sarah Chamberlain, others. Jim Kessler last evening on Balance of Power said get ready for a shutdown. Then this op ed appeared in the New York Times, and everyone says Schumer caves is the headline. He's going to vote yes and he wants his members to follow. We'll find out if they actually do. The question is what happens to Chuck Schumer, and of course what happens to the congressional agenda after all of this. Democrats are still really angry. In fact, Chuck Schumer is having such a good day that people are talking about Alexandria Cossio Cortes maybe primary ing him for all of this. You think Chuck Schumer and Speaker Mike Johnson maybe get a beer later on and compare notes on what this is like we did. Hear from AOC on CNN. Here's what she said.

We're watching Wall Street Big Bounce Back. We'll see if this can hold a lot of people trying to call the bottom right now, with really not much less uncertainty than we had a day ago. But we did check one box late last night courtesy of Chuck Schumer, who's having a day now. We heard about that maybe thirty hours beforehand. I think Mike Dorning said his opposition to this continuing resolution, he was going to have all Democrats vote no, and the government was going to shut down tonight. Sarah Chamberlain, others. Jim Kessler last evening on Balance of Power said get ready for a shutdown. Then this op ed appeared in the New York Times, and everyone says Schumer caves is the headline. He's going to vote yes and he wants his members to follow. We'll find out if they actually do. The question is what happens to Chuck Schumer, and of course what happens to the congressional agenda after all of this. Democrats are still really angry. In fact, Chuck Schumer is having such a good day that people are talking about Alexandria Cossio Cortes maybe primary ing him for all of this. You think Chuck Schumer and Speaker Mike Johnson maybe get a beer later on and compare notes on what this is like we did. Hear from AOC on CNN. Here's what she said.

I think that what we need right now is a United Senate Democratic caucus that can stand up for this country and not vote for cloture and not vote for this bill. And I cannot urge enough how bad of an idea it is to empower and enable Donald Trump and Elon Musk in this moment. It is dangerous and it is reckless.

I think that what we need right now is a United Senate Democratic caucus that can stand up for this country and not vote for cloture and not vote for this bill. And I cannot urge enough how bad of an idea it is to empower and enable Donald Trump and Elon Musk in this moment. It is dangerous and it is reckless.

Now, even as we see the markets rise because hey, we can get along, we can get something done, maybe even keep the lights on in the government. There are huge questions about how Democrats will play along with this reconciliation bill, what happens to the debt limit, by the way, tariffs, if we figure out any of that, And then of course there's the doge. I was driving in this morning. I saw people crowded in front of the Department of Justice saying fire Elon. They had signs up sell your tesla. The anger is palpable, and that's why we have arranged for this conversation. Now, if you're an old guy like me, you remember two voices in the old days, Carvel and Madeline. Remember that every now and then on Sunday morning when things would get real chippy, we could always count on these two to kind of point us to a more logical, more reasonable place. Mary Matlin, James Carville. That was a long time ago. I want to introduce you to a new carvel In Matlin for a new age one you know well from this program. Kevin Walling, the Democratic strategist. He's joined today by Alex stroman former RNC spokesperson and Republican strategist. And guess what they're married. Gentlemen, Welcome to Balance of Power. We've been wanting to do this for a long time. We have hey jokes before I get into living together. Katz and DAWs the rest of it. You guys are both practitioners of Washington. I want your take on this. Speak to the anger, Kevin, because Chuck Schumer says his rank and file should vote yes. That wasn't the story yesterday.

Now, even as we see the markets rise because hey, we can get along, we can get something done, maybe even keep the lights on in the government. There are huge questions about how Democrats will play along with this reconciliation bill, what happens to the debt limit, by the way, tariffs, if we figure out any of that, And then of course there's the doge. I was driving in this morning. I saw people crowded in front of the Department of Justice saying fire Elon. They had signs up sell your tesla. The anger is palpable, and that's why we have arranged for this conversation. Now, if you're an old guy like me, you remember two voices in the old days, Carvel and Madeline. Remember that every now and then on Sunday morning when things would get real chippy, we could always count on these two to kind of point us to a more logical, more reasonable place. Mary Matlin, James Carville. That was a long time ago. I want to introduce you to a new carvel In Matlin for a new age one you know well from this program. Kevin Walling, the Democratic strategist. He's joined today by Alex stroman former RNC spokesperson and Republican strategist. And guess what they're married. Gentlemen, Welcome to Balance of Power. We've been wanting to do this for a long time. We have hey jokes before I get into living together. Katz and DAWs the rest of it. You guys are both practitioners of Washington. I want your take on this. Speak to the anger, Kevin, because Chuck Schumer says his rank and file should vote yes. That wasn't the story yesterday.

Yeah, Joe, the anger is palpable and you just played that clip from AOC. We're seeing this dynamic play out across the board in a lot of these Democratic Caucus lunches right that have been widely reported in terms of screaming match going on the last couple of days on Capitol Hill. You had Center Warnock, Raphael Warnock come up and say today, actually in the last couple of minutes, that it's likely that there's going to be new Senate Democratic leadership in two years for the caucus.

Yeah, Joe, the anger is palpable and you just played that clip from AOC. We're seeing this dynamic play out across the board in a lot of these Democratic Caucus lunches right that have been widely reported in terms of screaming match going on the last couple of days on Capitol Hill. You had Center Warnock, Raphael Warnock come up and say today, actually in the last couple of minutes, that it's likely that there's going to be new Senate Democratic leadership in two years for the caucus.

So there is this.

So there is this.

Dynamic at play. Obviously, you know Senater Fetterman has said that he is a yes on this center Schumer obviously has said he is a yes. It'll be interesting to see where they piece together the other votes for Klocher, likely not to support the budget, but just to get over that first hurdle in terms of actuallyring it to the floor by midnight tonight.

Dynamic at play. Obviously, you know Senater Fetterman has said that he is a yes on this center Schumer obviously has said he is a yes. It'll be interesting to see where they piece together the other votes for Klocher, likely not to support the budget, but just to get over that first hurdle in terms of actuallyring it to the floor by midnight tonight.

You don't think we shut down.

You don't think we shut down.

I do not think we shut down. We'll see again if this anger convinces more folks. The one good thing for Schumer not good for my party, But the one good thing for Schumer right now is he has a good number of retirements that are happening. Jean Shaheen just announced Gary Peters others part of his leadership team. Yes that don't have to face the voters. That gives him a little bit more leverage to say I need your help on this important vote.

I do not think we shut down. We'll see again if this anger convinces more folks. The one good thing for Schumer not good for my party, But the one good thing for Schumer right now is he has a good number of retirements that are happening. Jean Shaheen just announced Gary Peters others part of his leadership team. Yes that don't have to face the voters. That gives him a little bit more leverage to say I need your help on this important vote.

Okay, Alex, do you think that there's a shutdown on the cards here, and if not, are we at the point where avoiding a government shutdown is considered a win for the Republican Party.

Okay, Alex, do you think that there's a shutdown on the cards here, and if not, are we at the point where avoiding a government shutdown is considered a win for the Republican Party.

I think so. I don't think we're anywhere close to a government shutdown. I think that Democrats will fall in line. As a Republican, it feels really good to see the Democrats be in disarray and have some leadership issues and see they're rank and file members kind of rebelling against leadership. That's something as a Republican we've become quite accustomed to. We do we do it very very well. And so I think that the Donald Trump's tweet about Leader Schumer kind of comparing him, he said guts and guts and courage. Schumer's guts and courage and maybe think of guts and glory with Patten and he's always won for theaters. But I think that that is really trying to put even lider Schumer in even tougher spot. When you have the President United States praising Chuck Schumer, Democrats are fairly listless, and you see what happened with the State of the Union with some of the responses and just kind of the actions that Democrats had, I think with Leader Schumer and the progressives in his party really kind of rebelling with AOC, with Patty Murray kind of already coming out and questioning him, it really puts me in a tough spot. And again it feels good for Republicans to.