Original Broadcaster Captioning (Enhanced). Treat it as a searchable index of what was broadcast, not a quotation record.
00:00:01C-SPAN.ORG.
00:00:01>> C-SPAN IS AS UNBIASED AS YOU
00:00:14CAN GET. >> YOU ARE SO FAIR.
00:00:17I DON'T KNOW HOW ANYONE CAN SAY OTHERWISE. >> YOU GUYS DO THE MOST
00:00:20IMPORTANT WORK FOR EVERYONE IN THIS COUNTRY.
00:00:22>> I LOVE C-SPAN BECAUSE I GET TO HEAR ALL THE VOICES.
00:00:26>> YOU BRING THESE DIVERGENT VIEWPOINTS AND YOU PRESENT BOTH
00:00:29SIDES OF AN ISSUE AND ALLOW PEOPLE TO MAKE UP THEIR OWN MINDS.
00:00:32>> I ABSOLUTELY LOVE C-SPAN. I LOVE TO HEAR BOTH SIDES.
00:00:36>> I WHAT SHE SPENT EVERY MORNING AND IT'S UNBIASED.
00:00:42YOU BRING IN FACTUAL INFORMATION FOR THE CALLERS TO UNDERSTAND
00:00:44WHERE THEY ARE IN THEIR COMMENTS.
00:00:47>> PROBABLY THE ONLY PLACE WE CAN HEAR HONEST OPINION OF
00:00:51AMERICANS ACROSS THE COUNTRY. >> YOU GUYS AT C-SPAN ARE DOING
00:00:53SUCH A WONDERFUL JOB OF ALLOWING
00:00:55FREE EXCHANGE OF IDEAS WITHOUT A LOT OF INTERRUPTIONS.
00:00:59>> THANK YOU FOR BEING A LIGHT IN THE DARK.
00:01:05>> TREASURY SECRETARY SCOTT
00:01:09BESSENT TESTIFIES BEFORE THE HOUSE FINANCIAL SERVICES COMMITTEE ON THE STATE OF THE
00:01:13U.S. ECONOMY. MEMBERS PRESSED HIM ON THE USE
00:01:14OF AI AND FINANCE, INFLATION,
00:01:18OIL PRICES, AND THE WARNER RON. THIS HEARING IS JUST UNDER -- THE WAR IN IRAN.
00:01:23THIS HEARING IS JUST UNDER THREE HOURS.
00:01:26>> THE COMMITTEE ON FINANCIAL SERVICES WILL COME TO ORDER.
00:01:30THE CHAIR HAS AUTHORIZED THE RECESS OF THE COMMITTEE AT ANY TIME.
00:01:36THE THE ANNUAL TESTIMONY FOR SECRETARY OF THE TREASURY AND
00:01:39THE STATE OF THE INTERNATIONAL FINANCIAL SYSTEM. WITHOUT OBJECTION, ALL MEMBERS
00:01:43WILL HAVE FIVE LEGISLATIVE DAYS TO SUBMIT EXTRANEOUS MATERIAL TO
00:01:47THE CHAIR FOR THE INCLUSION OF THE RECORD. I WOULD LIKE TO REMIND OUR GUEST
00:01:51TODAY IN THE HEARING ROOM THAT
00:01:54IN ACCORDANCE TO RULE 11 OF LAWS
00:01:57FOR THE HOUSE OF REPRESENTATIVES
00:01:59, TO OBSERVE THE STANDARDS OF DIGNITY, PROPRIETY, COURTESY AND
00:02:02DECORUM, WE OBSERVED THE HOUSE AND THIS COMMITTEE.
00:02:10I RECOGNIZE MYSELF FOR FOUR MINUTES FOR AN OPENING STATEMENT.
00:02:15GOOD MORNING, MR. SECRETARY. I WOULD LIKE TO WELCOME YOU BACK TO THE COMMITTEE.
00:02:19WE THANK YOU FOR YOUR CONTINUED EFFORTS TO ENSURE AMERICA'S
00:02:22LEADERSHIP IN THE GLOBAL ECONOMY, AND ADVANCES THE
00:02:26INTEREST OF AMERICAN WORKERS,
00:02:27BUSINESSES, AND TAXPAYERS.
00:02:32THE UNITED STATES PLAYS A CENTRAL ROLE IN SHAPING THE INTERNATIONAL FINANCIAL SYSTEM. THAT INFLUENCE REFLECTS THE
00:02:35GLOBAL IMPORTANCE OF THE UNITED STATES DOLLAR, THE SIZE AND DEPTH OF THE U.S. FINANCIAL
00:02:40MARKETS, AND OUR LONG-STANDING
00:02:42ROLE IN CRITICAL INSTITUTIONS SUCH AS THE INTERNATIONAL
00:02:46MONETARY FUND AND THE WORLD BANK. THE UNITED STATES IS THE LEADING
00:02:50SHAREHOLDER IN BOTH OF THESE KEY INSTITUTIONS. THAT GIVES THE COMMITTEE AN
00:02:53IMPORTANT RESPONSIBILITY TO ENSURE THAT AMERICAN INTERESTS
00:02:56ARE PROTECTED AND THAT U.S. GOVERNANCE IS SUBJECT TO THE
00:03:00APPROPRIATE OVERSIGHT. WE MUST ENSURE THESE INSTITUTIONS REMAIN FOCUSED ON THEIR CORE MISSIONS.
00:03:04OPERATE TRANSPARENTLY, AND USE
00:03:09RESOURCES WIDELY CONSISTENT WITH THE CORE MISSION.
00:03:13UNDER THE PREVIOUS ADMINISTRATION THE WORLD BANK AND THE IMF WERE PULLED AWAY
00:03:16FROM THE CORE RESPONSIBILITIES BY MISSION CREEP.
00:03:21FOR EXAMPLE, TRYING TO TRANSFORM THE IMF INTO A CLIMATE DEVELOPMENT BANK.
00:03:24THAT IS NOT ITS ROLE AND IT DISTRACTS FROM ITS INCREDIBLY IMPORTANT MISSION.
00:03:30FORTUNATELY UNDER THE TRUMP AND ADMINISTRATION WE HAVE SEEN A RENEWED EMPHASIS ON DELIVERING
00:03:33MEASURABLE RESULTS THROUGH ACCOUNTABILITY AND DISCIPLINE AT
00:03:37BOTH THE IMF AND THE BANK.
00:03:40THE WORLD BANK MUST REMAIN COMMITTED TO REDUCING POVERTY
00:03:43AND PROMOTING ECONOMIC GROWTH BY
00:03:46DIRECTING RESOURCES TOWARDS COUNTRIES THAT GENUINELY NEED DEVELOPMENT ASSISTANCE.
00:03:49FOR YEARS THIS COMMITTEE HAS
00:03:53RAISED CONCERNS ABOUT THE WORLD BANK CONTINUING TO PROVIDE
00:03:55BILLIONS OF DOLLARS OF
00:04:00SECOND LARGEST ECONOMY IN ONE OF
00:04:05AMERICA'S FOREMOST STRATEGIC COMPETITORS.
00:04:06CHINA HAS ENORMOUS FINANCIAL
00:04:10RESOURCES OF THEIR OWN AND USES STATE DIRECTED INVESTMENT TO
00:04:13ADVANCE ITS ECONOMIC AND GEOPOLITICAL INTERESTS AROUND THE WORLD.
00:04:18AMERICAN TAXPAYERS SHOULD NOT BE BACKSTOPPING BEIJING.
00:04:24AND THEIR AMBITIONS AT THE WORLD BANK. THAT IS WHY THE WORLD BANK'S
00:04:26DECISION TO PHASE OUT ITS
00:04:29LENDING TO CHINA IS AN IMPORTANT STEP IN THE RIGHT DIRECTION.
00:04:33WE HAVE SEEN AN IMPORTANT LONG-OVERDUE CHANGE IN THE WORLD BANK'S APPROACH TO ENERGY.
00:04:41IN 2025 WITH STRONG BIPARTISAN
00:04:43PUSH WITH THE INTERNATIONAL
00:04:47NUCLEAR ENERGY FINANCING ACT, THE WORLD TOOK ITS FIRST
00:04:51CONCRETE STEP IN DECADES TO
00:04:52RE-ENGAGING WITH NUCLEAR ENERGY
00:04:55BY AGREEING TO RECEIVE NUCLEAR
00:04:58EXPERTISE, SUPPORT EXISTING
00:05:01REACTORS AND ADVANCE THE POTENTIAL OF SMALL MODULAR NUCLEAR REACTORS.
00:05:05THIS YEAR WE SAW THE FIRST
00:05:08CONTRIBUTION TO A NEW NUCLEAR ENERGY ASSISTANCE TRUST FUND AT
00:05:12THE BANK WHICH I HOPE WILL SEE ADDITIONAL FUNDS IN THE U.S.
00:05:16TREASURY GOING FORWARD. DEVELOPING ECONOMIES NEED ACCESS
00:05:20TO RELIABLE AND AFFORDABLE ELECTRICITY TO GROW, MAKING THIS
00:05:24EXACTLY THE KIND OF PRACTICAL PROGROWTH APPROACH THESE
00:05:27INSTITUTIONS SHOULD FULLY EMBRACE. I COMMEND THE PROGRESS OF THE
00:05:31WORLD BANK AND I HOPE THIS WILL
00:05:33TRANSLATE INTO MORE PROGRESS AND MORE FINANCING AROUND THE GLOBE.
00:05:36WHILE WE HAVE SEEN POSITIVE
00:05:39REPORTS AND PROGRESS AT THE WORLD BANK, CONCERNS REMAIN
00:05:42AROUND THE INTERNATIONAL MONETARY FUND APPROACH TO CHINA.
00:05:47IT SAFEGUARDS GLOBAL FINANCIAL STABILITY.
00:05:54IT REQUIRES RIGOROUS ECONOMIC OVERSIGHT AND TRANSPARENCY.
00:05:57CHINA PRESENTS A MAJOR TEST.
00:06:02IN ITS MOST RECENT ARTICLE FOR REVIEW IT FOUND WEAK DOMESTIC
00:06:06DEMAND, REAL EXCHANGE RATE
00:06:08DEPRECIATION AND RELIANCE ON EXPORTS HAVE CONTRIBUTED TO
00:06:13EXTERNAL IMBALANCES AND ADVERSE SPILLOVERS FOR CHINA'S TRADING
00:06:16PARTNERS. WE LOOK FORWARD TO OUR
00:06:19DISCUSSION WITH YOU, MR. SECRETARY, AND I YIELD BACK.
00:06:22>> I RECOGNIZE MYSELF OR A POINT
00:06:27OF PERSONAL PRIVILEGE WITH THE RANKING MEMBERS SUPPORT. I WOULD LIKE TO SHARE MY
00:06:31APPRECIATION AND CONGRATULATIONS TO THREE OF OUR COMMITTEE
00:06:35STAFFERS AS THEY PREPARE TO DEPART THE HILL TO START NEW ENDEAVORS.
00:06:38JAY ZHENG HAS WORKED WITH ME.
00:06:48IT HAS LED TO THE DEVELOPMENT OF OUR BIPARTISAN MAIN STREET
00:06:52CAPITAL ACCESS ACT WHICH RECEIVED A STRONG BIPARTISAN VOTE IN JULY.
00:06:57I'M ALSO UNBELIEVABLY PROUD OF WHAT WE HAVE ACCOMPLISHED
00:06:59TOGETHER AND CAN'T WAIT TO SEE HIS NEXT STEP.
00:07:02AND ROCKWELL JOINED US THIS
00:07:07CONGRESS AND LEAD OUR ARTIFICIAL INTELLIGENCE SUBCOMMITTEE.
00:07:12HE IS WELCOMED TO THIS COMMITTEE AFTER HAVING WORKED FOR EIGHT
00:07:14YEARS AT THE HOUSE AGRICULTURE
00:07:18COMMITTEE. HE HAS BEEN INVALUABLE. GETTING GENIUS TO THE
00:07:22PRESIDENT'S DESK AND PASSING
00:07:24CLARITY IN THE HOUSE WAS
00:07:29DEMONSTRATIVE OF HIS HARD WORK.
00:07:30FINALLY I WANT TO RECOGNIZE MY
00:07:34GOOD FRIEND FOR A LONG TIME, DAN SCHNEIDER, OUR COMMUNICATIONS
00:07:37DIRECTOR ON THE COMMITTEE WHO ALSO WORKED FOR ME IN OUR
00:07:41ARKANSAS OFFICE. A STEADFAST COMMUNICATOR WHO
00:07:44MADE SURE MY CONSTITUENTS KNOW HOW HARD WE ARE FIGHTING TO
00:07:48ENSURE THEY HAVE A BETTER ECONOMY AHEAD.
00:07:52I WANT TO THANK ALL THREE OF THESE FINE STAFFERS, I WISH THEM
00:07:55WELL AND I INVITE THE COMMITTEE
00:08:00TO JOIN ME IN A ROUND OF APPLAUSE. [APPLAUSE]
00:08:06I KNOW RANKING -- RECOGNIZE THE
00:08:09RANKING MEMBER OF THE COMMITTEE FOR AN OPENING STATEMENT.
00:08:13>> SEC. BESSENT YOU HAVE BROUGHT
00:08:17A MILLION PROMISES, YOU PLEDGED
00:08:21DEEPER COOPERATION WITH OUR TRADING PARTNERS, STRONGER
00:08:23AMERICAN LEADERSHIP AND GREATER
00:08:25STABILITY IN THE GROUP -- GLOBAL
00:08:31FINANCIAL SYSTEM. THE REALITY IS AN INCREASINGLY
00:08:33ISOLATED AMERICA, A WEAK,
00:08:37SELF-SERVING PRESIDENCY AND INSTABILITY EVERYWHERE INCLUDING HERE AT HOME.
00:08:44WHAT TALES WILL YOU TELL ABOUT
00:08:46ECONOMIC CYCLES WHEN FAMILIES
00:08:49TAKE OUT LOANS TO BUY FOOD?
00:08:51WHAT STORIES WILL YOU SPIN TO AMERICANS WHOSE HOMEOWNERSHIP
00:08:56DREAMS STRIP AWAY WITH 7% MORTGAGES.
00:09:02AND TARIFFS ON BUILDING
00:09:04MATERIALS ADDING NEARLY $11,000 TO THE COST OF A NEW HOME.
00:09:10WHAT DO YOU HAVE TO SAY ABOUT
00:09:13THOSE TRYING TO SURVIVE UNDER YOUR NONSENSICAL TRADE POLICIES?
00:09:22TRUMPS WAR IN IRAN DRIVING UP THE COST OF LIVING FOR EVERYTHING.
00:09:25PRESIDENT TRUMP ASSURED THE
00:09:30AMERICAN PEOPLE THAT YOU WERE A STEADY HAND.
00:09:37I WOULD SAY OUR HANDS ARE SHAKY. AMERICANS KNOW THE TRUTH BECAUSE
00:09:41THEY FEEL IT AT THE GROCERY STORE, THE GAS PUMP, IN THEIR
00:09:45WALLETS, AROUND THEIR KITCHEN TABLES.
00:09:46THE ONLY BOOM HAPPENING IS THE
00:09:50ONE WHERE TRUMP AND HIS FAMILY HAVE MADE MORE THAN $2 BILLION SINCE TAKING OFFICE.
00:09:55IRONICALLY WHILE FAMILIES ENDURE
00:09:59, YOU HAVE MANAGED TO FIND BILLIONS TO BAIL OUT ARGENTINA
00:10:03AND YOUR WALL STREET BUDDIES.
00:10:06YOU HAVE COMMITTED UNITED STATES ASSETS TO SUPPORT JAPAN'S CURRENCY WHILE YOU FAILED TO
00:10:10LOWER LONG TERM INTEREST RATES,
00:10:13YOU HAVE A TAX THE ECONOMIES OF OUR CLOSEST ALLIES DRIVING UP
00:10:17COSTS ERA AT HOME. YOU HAVE BEEN COZYING UP TO
00:10:19PUTIN, GIVING WAIVERS TO RUSSIA
00:10:21TO EARN BILLIONS IN SANCTION OIL
00:10:25AND EXTEND ITS WAR AGAINST UKRAINE.
00:10:28IMAGINE IF THIS ADMINISTRATION CARES EVEN HALF AS MUCH ABOUT
00:10:32STRUGGLING AMERICANS. WHO ELSE BENEFITS?
00:10:35WALL STREET FOR ONE. THE STOCK MARKET MAY BE HITTING
00:10:38RECORD HIGHS, BUT ONE OUT OF
00:10:41FIVE AMERICANS ARE RATIONING THEIR MEALS.
00:10:45AI COMPANIES ARE DOING VERY WELL
00:10:46ON YOUR WATCH WHILE YOU DISMISS
00:10:49THE THREAT TO WORKERS AND JOBS AND OUR FINANCIAL SYSTEM AND
00:10:54EVEN OUR VERY EXISTENCE AND WE CAN'T FORGET CRYPTO.
00:10:58YOU CALLED STABLE COIN A REVOLUTION, PREDICTING INCREASED
00:11:02DEMAND FOR U.S. TREASURIES, YET YOU ARE IGNORING THE CONFLICTS
00:11:06OF INTEREST IN THE TRUMP FAMILY, STABLE COIN AND CRYPTO
00:11:10BUSINESSES. THE TRUMP FAMILY IS CASHING IN
00:11:13FROM THE OVAL OFFICE WHILE MAIN STREET SUFFERS.
00:11:17COMMITTEE DEMOCRATS HAVE GIVEN YOU EVERY OPPORTUNITY TO DO THE
00:11:21RIGHT THING, WE HAVE SENT LETTERS AND DEMANDED ANSWERS,
00:11:23BUT CONSISTENTLY YOU HAVE
00:11:27DISREGARDED OR IGNORED OUR OVERSIGHT. THIS HEARING IS TRADITIONALLY AN
00:11:31OPPORTUNITY FOR THE TREASURY SECRETARY TO DELIVER REMARKS TO
00:11:33THIS COMMITTEE BUT I DO CAUTION
00:11:36EVERYONE TODAY WHATEVER YOU HERE
00:11:42TODAY, CHECK IT OUT, QUESTION IT, DON'T BE GAS LIT BY THE
00:11:45TRUMP ADMINISTRATION AND A WORD
00:11:49ABOUT CUBA.
00:11:51YOU CUT OFF ALL THE OIL TO CUBA.
00:11:54YOU ARE STARVING THE FAMILIES AND THE CHILDREN, THEY DON'T
00:11:57HAVE ELECTRICITY, THEY CAN'T GET FOOD IN.
00:12:02WHAT YOU DOING, MR. SECRETARY?
00:12:03WHY ARE YOU BEING SO CRUEL? I KNOW WE HAVE A CRUEL
00:12:07PRESIDENT, BUT DO YOU HAVE TO BE A PUPPET?
00:12:12WHAT ARE YOU DOING TO THIS COUNTRY?
00:12:16YOU ARE MAKING US NOT ONLY LOOK BAD, BUT ACT ALL OVER THE WORLD
00:12:20AND I TELL YOU HISTORY IS NOT
00:12:21GOING TO BE KIND TO YOU OR THIS
00:12:25ADMINISTRATION AND I SAY TO YOU, STOP TRYING TO KILL OFF THE
00:12:29FAMILIES IN CUBA. STOP STARVING THE CHILDREN.
00:12:32LET THE OIL FLOW, LET THEM HAVE
00:12:36ELECTRICITY, ALLOW THEM TO GET TRADE AND FOOD, ETC.
00:12:40I COULD GO ON ALL DAY.
00:12:42THIS IS NOT A FUN DAY FOR ME, THIS IS A VERY CRITICAL TIME AND
00:12:46YOU ARE IN A POSITION WHERE YOU COULD DO A LOT BETTER, YOU COULD
00:12:50BE KINDER, YOU DON'T HAVE TO BE
00:12:52CRUEL, YOU DON'T HAVE TO SEE CHILDREN STARVING AND DYING.
00:12:55AND WITH THAT, I YIELD BACK THE
00:13:00BALANCE OF MY TIME.
00:13:04THE CHAIR RECOGNIZES THE GENTLEMAN FROM OHIO, THE CHAIR
00:13:07OF OUR NATIONAL SUBCOMMITTEE, FOR AN OPENING STATEMENT.
00:13:11>> SEC. BESSENT, I WANT TO
00:13:14COMMEND YOU FOR DELIVERING REAL RESULTS FOR THE AMERICAN PEOPLE
00:13:18WAS STORING FOCUS TO OUR INTERNATIONAL FINANCIAL INSTITUTIONS AND ENSURING
00:13:22AMERICA REMAINS THE CENTER OF
00:13:26GLOBAL MARKETS. YOU HAVE EDUCATED THE PUBLIC.
00:13:30SENATOR WARREN. ESPECIALLY ON THE UTILITY OF CURRENCY SLOTS.
00:13:34FROM THE RANKING MEMBERS OPENING REMARKS MORE WORK REMAINS.
00:13:39YOU HAVE PURSUED SANCTIONS OF AIDERS, HOSTILE REGIMES, AND
00:13:43INSTITUTIONS FUNDING AMERICA'S ADVERSARIES.
00:13:46YOU PUT TAXPAYER PROTECTION
00:13:48FIRST BY CRACKING DOWN ON MONEY LAUNDERING, CYBER SCAMS, AND
00:13:52ILLICIT FINANCIAL NETWORKS.
00:13:56TREASURIES IDENTIFICATION OF $17.5 BILLION IN SUSPECT HEALTH
00:14:00CARE FRAUD IS AN EXAMPLE. YOU HAVE CONSTITUTIONALLY
00:14:03PROTECTED PRIVACY BY ROLLING
00:14:07BACK THE ONEROUS CORPORATE TRANSPARENCY ACT.
00:14:10THANK YOU FOR YOUR LEADERSHIP, A
00:14:13STEADY HAND REPAIRING DAMAGE DONE BY YEARS OF PRIOR NEGLECT OR MALFEASANCE.
00:14:16THANKS TO YOUR WORK WE WILL MAKE AMERICA GREAT AGAIN.
00:14:20CHAIR HILL: WE WELCOME THE TESTIMONY OF THE HONORABLE SCOTT
00:14:25BESSENT OF THE TREASURY. WE THANK YOU FOR BEING WITH US
00:14:28TODAY AND WE RECOGNIZE YOU FOR
00:14:31FIVE MINUTES TO MAKE AN OPENING STATEMENT.
00:14:35YOUR WRITTEN STATEMENT WILL BE PART OF THE RECORD WITHOUT OBJECTION.
00:14:37SEC. BESSENT: CHAIRMAN, WRECKING
00:14:41MEMBER, AND NUMBER SOME THE COMMITTEE, THANK YOU FOR TODAY'S HEARING.
00:14:45I LOOK FORWARD TO DISCUSSING THE INTERNATIONAL FINANCIAL SYSTEM AS WE STRENGTHEN AMERICAN
00:14:49LEADERSHIP WITHIN IT. THE UNITED STATES BROUGHT
00:14:53LEADERSHIP TO ASHEVILLE. [YELLING]
00:14:59CHAIR HILL: THE COMMITTEE WILL BE IN ORDER.
00:15:01THE COMMITTEE WILL BE IN ORDER.
00:15:04I FORMALLY REQUESTED THOSE WHO
00:15:06ARE MAKING THE DISRUPTIONS CEASE THEIR ACTIONS IMMEDIATELY.
00:15:10THE COMMITTEE WILL SUSPEND UNTIL CAPITAL POLICE CAN RESTORE ORDER.
00:15:19PLEASE, AUDIENCE. BE IN COMPLIANCE OF THE HOUSE RULES. MR. SECRETARY, YOU ARE RECOGNIZED.
00:15:23SEC. BESSENT: WELL, THAT IS A NOVEMBER DECISION.
00:15:28THIS VERSUS THAT. >> YOU ARE A WAR CRIMINAL!
00:15:31HOW DARE YOU!
00:15:33CHAIR HILL: THE COMMITTEE WILL
00:15:37SUSPEND UNTIL THIS ORDER CAN BE
00:15:41RESTORED.
00:15:41>> STOP THE ACTIONS IN IRAN.
00:15:45SHAME ON ALL OF YOU! [INDISCERNIBLE YELLING]
00:15:49CHAIR HILL: MR. SECRETARY,
00:15:53PLEASE PROCEED.
00:15:54SEC. BESSENT: IN RECENT WEEKS,
00:15:58THE UNITED STATES BROUGHT LEADERSHIP TO ASHEVILLE, NORTH CAROLINA.
00:16:02[YELLING]
00:16:04>> YOU GUYS ARE KILLING CIVILIAN
00:16:08WOMEN AND CHILDREN! YOU ARE MURDERERS!
00:16:21[INDISCERNIBLE SHOUTING] CHAIR HILL: WHAT ANYBODY ELSE
00:16:24LIKE TO DO THAT NOW AND GET IT OVER WITH? ALL RIGHT.
00:16:30THE COMMITTEE WILL RECONVENE.
00:16:31SEC. BESSENT: FOR DECADES,
00:16:34MULTILATERAL FORUMS LIKE THE G20. [SHOUTING]
00:16:38CHAIR HILL: I'M SORRY, MR.
00:16:42SECRETARY, WE WANT TO HEAR WHAT YOU HAVE TO SAY. [YELLING]
00:16:50[INDISCERNIBLE YELLING]
00:16:54CHAIR HILL: MR. SECRETARY, YOU
00:16:58ARE RECOGNIZED. SEC. BESSENT: FOR DECADES,
00:17:02MULTILATERAL FORUMS LIKE THE G20
00:17:04ACCUMULATED AGENDAS WHILE LOSING
00:17:08TRACK OF THEIR POOR MISSIONS. [SHOUTING]
00:17:12CHAIR HILL: MR. SECRETARY.
00:17:16[LOUD SHOUTING]
00:17:26[SHOUTING
00:17:29CHAIR HILL: MR. SECRETARY, YOU
00:17:33ARE RECOGNIZED.
00:17:34SEC. BESSENT: WE RECEIVED BROAD
00:17:42AGREEMENT ON THE NEED TO PROMOTE IT.
00:17:44WE HAVE REACHED CONSENSUS FOR ECONOMIES REPRESENTING TWO
00:17:48THIRDS OF GLOBAL GDP TO IMPROVE
00:17:52THE GLOBAL ARCHITECTURE AND
00:17:57SUPPORT REGULATORY MODERNIZATION.
00:17:58IN SUBSTANCE AND SPIRIT, THEY
00:18:05ARE ENSURING THAT AMERICAN TIME AND RESOURCES SHOW AMERICAN
00:18:09INTERESTS AND THEY BRING THAT SAME DISCIPLINE TO THE IMF AND
00:18:12WORLD BANK TO REMAIN TRUE TO
00:18:16THEIR MANDATE AND ARE BETTER POSITIONED TO PROMOTE ECONOMIC GROWTH.
00:18:19AS GROWTH GUIDES OUR LEADERSHIP ONE OF THE WORLD STAGE IT IS
00:18:24IMPORTANT TO CARRY THAT GREAT
00:18:25NATION TO STRENGTH HERE AT HOME
00:18:28PRESIDENT TRUMP'S ECONOMIC TURNAROUND IS ESPECIALLY IMPRESSIVE GIVEN THE TURNAROUND
00:18:32-- WHAT HE INHERITED FROM HIS
00:18:36PREDECESSOR WERE INFLATION
00:18:38SOARED TO A HIGH AND FAMILIES WERE DEALING WITH PRICE
00:18:41INCREASES OF 21.5% OR MORE.
00:18:44UNDER PRESIDENT TRUMP, THE PRIVATE SECTOR HAS CREATED OVER ONE MILLION JOBS.
00:18:49THE BOTTOM 25% OF WAGE EARNERS
00:18:54ARE SEEING LARGER WAGE INCREASES THAN THOSE AT THE TOP.
00:18:56THE WORKING FAMILIES TAX CUTS HAS DELIVERED THE LARGER SHARE
00:18:59OF TAX RELIEF DIRECTLY TO
00:19:03MILLIONS OF LOW AND MIDDLE INCOME AMERICANS. OVER 64 MILLION TAX RETURNS
00:19:08CLAIMED AT LEAST ONE OF
00:19:09PRESIDENT TRUMP'S SIGNATURE
00:19:15CHANGES, NO TAX ON TIPS, NO TAX
00:19:19ON LOW AND MIDDLE INCOME SENIORS.
00:19:22AMERICANS RECEIVE OVER 325 BILLION DOLLARS IN REFUNDS.
00:19:32MANY FAMILIES HAVE CLAIMED THE EXPANDING CHILD TAX CREDIT.
00:19:35THIS LEGISLATION, IF OPPONENTS
00:19:40HAD THEIR WAY, THIS ECONOMY WOULD HAVE BEEN SOLD THE LARGEST
00:19:44TAX HIKE IN HISTORY, OVER $5 TRILLION.
00:19:47EACH OF THESE IMPROVEMENTS POINTS TO A STRUCTURAL RENEWAL
00:19:50OF AMERICA'S CAPACITY TO PRODUCE
00:19:54AND PROSPER. U.S. MANUFACTURING IS ROARING
00:19:56BACK TO ITS STRONGEST PACE IN
00:20:00YEARS. BUSINESS ACTIVITY HAS SURGED TO
00:20:04A 52 MONTH HIGH.
00:20:05AND AS COMPANIES ALLOCATE TRADE,
00:20:11THE ATLANTA FED NOW PROJECTS THIRD-QUARTER GDP GROWTH TO SURPASS 4%.
00:20:17A NEW INDUSTRIAL SUPER CYCLE IS MOVING FROM INVESTMENT TO
00:20:21PRODUCTION.
00:20:25THE STRENGTH OF OUR ECONOMY HAS
00:20:27ALLOWED THE UNITED STATES TO WAGE THE GREATEST ECONOMIC
00:20:30ISOLATION CAMPAIGN AND ITS
00:20:36ENABLERS. PRESIDENT TRUMP HAS TAKEN ACTION
00:20:38THAT HIS PREDECESSORS HAVE LONG
00:20:40DEFERRED AGAINST A REGIME THAT DEVOTES ITSELF TO DEATH TO
00:20:45AMERICA AND SEEKS NUCLEAR WEAPONS TO DO JUST THAT.
00:20:48UNDER HIS LEADERSHIP AMERICA IS
00:20:51NO LONGER MANAGING THE IRANIAN THREAT.
00:20:54AMERICA'S ECONOMIC RESURGENCE IS REINFORCING OUR CAPACITY TO DO
00:20:58SO FROM A POSITION OF STRENGTH.
00:21:01THE GROWTH WE ARE ADVANCING.
00:21:14THE PURPOSE OF OUR ECONOMIC LEADERSHIP AND THE PRINCIPAL
00:21:18THAT WILL CONTINUE TO GUIDE IT.
00:21:19CHAIR HILL: THANK YOU, I
00:21:24RECOGNIZE MYSELF FOR FIVE MINUTES.
00:21:26MR. SECRETARY, ONE THAT THEN
00:21:30DIRECTOR GATZKE WAS BEFORE IN
00:21:35JULY, SHE TALKED ABOUT UPDATING
00:21:40THE SUSPICIOUS ACTIVITY REPORT
00:21:42THRESHOLDS WHICH AS YOU KNOW FROM YOUR YEARS IN THE PRIVATE
00:21:46SECTOR ARE DECADES OUT OF DATE.
00:21:50WE HEARD THE SAME UNDER THE TESTIMONY FROM THE BIDEN
00:21:54ADMINISTRATION.
00:21:56UPDATING THE THRESHOLDS IS NOW FIVE YEARS OVERDUE.
00:22:01SO WHAT IS YOUR VIEW ON TRYING
00:22:03TO TACKLE THIS ISSUE OF RAISING
00:22:07THE THRESHOLD LIMITS ON SUSPICIOUS ACTIVITY REPORTS AND CTR'S?
00:22:10SEC. BESSENT: CHAIRMAN HILL,
00:22:15VERY IMPORTANT QUESTION AND THANK YOU FOR ASKING. WE BELIEVE WE MUST GET THIS
00:22:20RIGHT BECAUSE AS YOU SAID IT HAS
00:22:23GONE ON FOR YEARS AND WE WANT TO
00:22:25DO THAT WITH A COMBINATION OF POTENTIALLY RAISING THE
00:22:29THRESHOLD AND ALSO GIVING CREDIT TO INSTITUTIONS FOR THE DURATION
00:22:33THEY HAVE KNOWN THEIR CLIENTS.
00:22:35WE ARE IN THE MIDST OF THIS AND AS ALWAYS, WE WILL BE LOOKING
00:22:41AFTER OUR SMALLER FINANCIAL
00:22:44INSTITUTIONS, SMALL BANKS, AND
00:22:45COMMUNITY BANKS WHILE
00:22:52MAINTAINING THE SAFETY AND SOUNDNESS OF OUR FINANCIAL
00:22:56INSTITUTIONS. CHAIR HILL: THE INFORMATION
00:23:00BEING PROVIDED IS BEING USED AND HELPFUL IN OUR FIGHT AGAINST THE
00:23:03CARTELS AND GLOBAL TERRORISTS
00:23:07AND ILLICIT FINANCE BECAUSE A LOT OF FINANCIAL DECISIONS DON'T
00:23:11GET THE ATTITUDE THAT THAT IS THE CASE.
00:23:17IF IT WERE A DOLLAR THEY COULD LOOK AT EVERY SINGLE POSSIBLE
00:23:20CATEGORY BUT YOUR LEADERSHIP
00:23:24WOULD MAKE THIS A PRIORITY. WE ALSO APPRECIATE YOUR
00:23:28STATEMENT ABOUT CUTTING IRAN'S
00:23:31MURDEROUS REGIME OFF FROM
00:23:35WORKAROUNDS OF THE EXISTING SANCTIONS.
00:23:38IT IS FINALLY SEEKING TO BRING THAT GAME OF HIDE AND SEEK TO CLOSE.
00:23:44CHINA AND THE UAE ON TRADE AND
00:23:52MONEY MOVEMENTS FROM IRAN.
00:23:55WHAT ARE YOU DOING TO GET THEM IN LINE WITH YOUR GOALS?
00:23:59SEC. BESSENT: I THINK WE HAVE
00:24:02SEEN SOME VERY FORWARD FACING
00:24:04STATEMENTS FROM THE UAE AND THEY HAVE ANNOUNCED THEY HAVE CUT OFF
00:24:08FINANCIAL TRANSACTIONS AND TRADE WITH IRAN.
00:24:14AND ONE OF MY DEPUTIES WAS JUST
00:24:17THERE AND HAD A VERY GOOD
00:24:21DISCUSSION WITH ALL THE MEMBERS OF THEIR FINANCIAL SYSTEM AND AS
00:24:25YOU WILL SEE, TWO WEEKS AGO WE SANCTIONED THE BRANCHES OF AN
00:24:28EGYPTIAN BANK IN DUBAI AND THAT BANK WILL BE CLOSING.
00:24:35THAT BANK TRANSFERRED MORE THAN
00:24:37$1.8 BILLION SINCE 2025 TO IRAN.
00:24:42OUR MESSAGE HAS BEEN AND I KNOW IT HAS BEEN HEARD THAT YOU KNOW
00:24:46WHO YOU ARE, STOP.
00:24:50WE HAVE SANCTIONED THREE BANKS.
00:24:53WE HAVE HAD SOME VERY GOOD PRIVATE DISCUSSIONS AND I LOOK
00:24:57FORWARD TO THOSE CONTINUING THIS
00:25:00WEEKEND WHEN I MEET MY CHINESE COUNTERPART.
00:25:06AND I'M SURE WILL CONTINUE DURING THE STATE VISIT.
00:25:12CHAIR HILL: AN IMPORTANT AGENDA
00:25:16ITEM FOR THE BILATERAL DISCUSSION. YOU ALSO KNOW THAT THE SUPREME
00:25:20COURT IS RECENTLY REVIEWING
00:25:24PETITIONS THAT THEY REVIEW THE CORPORATE TRANSPARENCY ACT.
00:25:26I SUPPORT THE SUPREME COURT REVIEWING THIS ACT.
00:25:32I WANT TO THANK THE TREASURY FOR
00:25:39TARGETING GET IN LINE WITH THE WORK OF MR. DAVIDSON.
00:25:47YOU WOULDN'T OBJECT TO THAT REVIEW WHAT THE COURT?
00:25:51WE WILL TURN TO THE IMF AND THE TIME I HAVE REMAINING.
00:25:56GOING BACK TO BASICS FOR THE IMF
00:26:00AND I DON'T WANT TO SEE CHINA
00:26:03INCREASING ITS ALLOCATION IN THE
00:26:07SPECIAL BASKET OF CURRENCIES. IT IS NOT A MARKET ECONOMY, IT
00:26:11DOES NOT HAVE A FREELY TRADED CURRENCY.
00:26:15YOU CALLED OUT CHINA, ALL 19 COUNTRIES CALLED UP CHINA AT
00:26:19YOUR G20 MEETING.
00:26:22WOULD YOU AGREE THE IMF NEEDS TO HOLD CHINA MORE ACCOUNTABLE?
00:26:25SEC. BESSENT: I BELIEVE THAT THE
00:26:29IMF IS IN ADVANCED DISCUSSIONS WITH CHINA ON THE NATURE OF
00:26:33THEIR IMBALANCES AND THE
00:26:39IMBALANCES THAT POSED DIFFICULTIES.
00:26:41CHAIR HILL: I RECOMMEND THE
00:26:45RANKING MEMBER FOR YOUR QUESTIONS. REP. WATERS: THANK YOU, CHAIRMAN.
00:26:49SEC. BESSENT, SMALL BUSINESSES
00:26:53FEEL THE PAIN OF YOUR RECKLESS ECONOMIC POLICIES, SKYHIGH
00:26:57PRICES WITH THE ADMINISTRATION'S
00:27:04CHAOTIC TARIFFS AND OTHER
00:27:09UNSOUND POLICIES, THE AVERAGE
00:27:11AMERICAN IS SPENDING $3500 MORE
00:27:17THAN THEY OTHERWISE WILL FOR
00:27:17GROCERIES, GAS, AND HOUSEHOLDS.
00:27:23THAT WAS BEFORE PRESIDENT TRUMP
00:27:25STARTED AN UNNECESSARY TRADE WAR WITH CANADA.
00:27:34YET TRUMP IS NOT CONCERNED ABOUT ALL OF THIS.
00:27:37THE PRESIDENT HAS SAID
00:27:41REPEATEDLY THAT IT IS A HOAX.
00:27:44HE SAID HE DOES NOT CARE THAT AMERICANS ARE PAYING MORE FOR
00:27:49GAS.
00:27:51FOR YOUR PART YOU ANNOUNCED A
00:27:56SO-CALLED ECONOMIC D-DAY AGAINST IRAN.
00:28:10AMERICANS SEE THE PAINFUL EFFECTS OF THE ECONOMY.
00:28:13YOU CLAIM THAT ECONOMIC
00:28:18DIFFICULTIES EXIST.
00:28:23YOU HAVE SAID I AM THE HOUSE NOW.
00:28:29THERE CONTINUES TO BE A SELLOFF OF U.S. TREASURIES.
00:28:36THAT HAVE NOT BEEN SEEN SINCE 2007.
00:28:41YESTERDAY THE NEAR TERM 5%.
00:28:45DO YOU NOT AGREE THAT THESE HIGH TREASURY YIELDS ARE INTEREST
00:28:49RATES ON AMERICA'S BONDS MEAN
00:28:57THIS WILL ALSO BE EXPENSIVE, YES OR NO?
00:28:59SEC. BESSENT: D U.S. BOND MARKET
00:29:03HAS BEEN THE BEST-PERFORMING. REP. WATERS: YES OR NO, MR.
00:29:07SECRETARY. YES OR NO.
00:29:10RECLAIMING MY TIME, RECLAIMING
00:29:13MY TIME, RECLAIMING MY TIME, RECLAIMING MY TIME.
00:29:17YOU WILL KEEP TALKING, I WILL KEEP RECLAIMING MY TIME.
00:29:23IF TARIFFS ARE NOT INFLATIONARY AS YOU CLAIMED IN YOUR PREVIOUS
00:29:28TESTIMONY THEN WHY HAS INFLATION
00:29:32INCREASED MORE THAN 3% OVER THE PAST YEAR?
00:29:36DO YOU DENY THAT IT IS TOO HIGH?
00:29:41YES OR NO? YES OR NO?
00:29:47RECLAIMING MY TIME, RECLAIMING
00:29:49MY TIME, RECLAIMING MY TIME,
00:29:52RECLAIMING MY TIME, RECLAIMING MY TIME.
00:29:55WHAT DID YOU SAY?
00:29:58DOES THE TIME BELONG TO THE GENTLELADY? CHAIR HILL: INDEED.
00:30:01REP. WATERS: INDEED IT DOES.
00:30:05THAT IS NOT GOOD ENOUGH SIR.
00:30:09YOU HAVE OVERSEEN AN INCREASE TO
00:30:14$5 TRILLION.
00:30:21THIS IS SO OUTRAGEOUS WHEN YOU
00:30:25AND OTHERS HAVE CLAIMED TO BE
00:30:29ABOUT GETTING RID OF THE DEFICIT.
00:30:34PRESIDENT TRUMP CONTINUES TO
00:30:34BLINDLY PUSH WITH ABSOLUTELY NO
00:30:39SAFEGUARD.
00:30:44BUT DID YOU HEAR WHAT BILL GATES HAD TO SAY?
00:30:49DID YOU HEAR ABOUT ANTHROPIC?
00:30:52THEY ALL SAY STOP IT, WATCH IT,
00:30:56AI IS DANGEROUS, YOU'VE GOT TO BE CAREFUL. DID YOU HEAR ANY THAT?
00:31:03YES OR NO? RECLAIMING MY TIME, RECLAIMING
00:31:07MY TIME. DID YOU HEAR WHAT YOUR FRIENDS
00:31:11HAD TO SAY, WHAT THE BIG BILLIONAIRES HAD TO SAY?
00:31:14DID YOU UNDERSTAND THEY SAID WE
00:31:18ARE MOVING TO A DANGEROUS PERIOD OF TIME? DID YOU HEAR THAT?
00:31:21SEC. BESSENT: THIS
00:31:24ADMINISTRATION HAS BEEN AT THE FOREFRONT OF EXAMINING THE MODELS.
00:31:29SEC. BESSENT: THEY SAID -- REP.
00:31:31WATERS: THEY SAID WATCH IT, BE CAREFUL.
00:31:39AND IF YOU ARE NOT WILLING TO
00:31:41STAND UP TO THE TRUTH, THESE ARE
00:31:45THE GUYS THAT YOU WORK WITH.
00:31:50THESE ARE THE BILLIONAIRES AND TRILLIONAIRE'S.
00:31:53CHAIR HILL: THE CHAIR NOW RECOGNIZES THE VICE CHAIRMAN.
00:31:57>> THANK YOU, MR. CHAIRMAN AND
00:32:02SEC. BESSENT, THIS HAS BECOME A COMMON THEME.
00:32:06WOULD YOU LIKE TO RESPOND ON ANY OF THAT?
00:32:10SEC. BESSENT: TO WHICH PEACE?
00:32:13THERE ARE SO MANY.
00:32:16>> WELL, WE CAN MOVE ON.
00:32:20INTERESTINGLY ENOUGH, I'M GOING
00:32:24TO BE DOING A HEARING IN THE OF
00:32:25FOREIGN AFFAIRS COMMITTEE THE
00:32:32COHORT FOR MALIGN INFLUENCE OPERATIONS WHICH WILL BE
00:32:34DISCUSSING ORGANIZATIONS LIKE CODE PINK.
00:32:41FUNNELING MILLIONS OF DOLLARS INTO THE U.S. TO FUND THOSE LIKE
00:32:45THIS SO THEY CAN COME AND DO THINGS LIKE THIS PERFORMANCE ART
00:32:49THEY ARE TRYING TO DO.
00:32:52MY APOLOGIES, BUT I GUESS YOU
00:32:56CAN EXPECT MORE AND MAYBE WE
00:32:57WILL SEE IF A FEW OF THESE PEOPLE CAN GET ARRESTED TWICE IN
00:33:01A DAY IF THEY SHOW UP AT MY 2:00 HEARING.
00:33:04I UNDERSTAND THE TREASURY
00:33:06DEPARTMENT AND THE BROADER ADMINISTRATION HAVE TECH
00:33:10SECURITY EFFORTS RUNNING FROM
00:33:14THE READINESS TASK FORCE TO THE LAUNCH OF THE CYBERSECURITY CLEARINGHOUSE.
00:33:20HOW IS TREASURY MAKING SURE THESE EFFORTS WORK TOGETHER
00:33:24WHILE DOING SOLID, DUPLICATE OF
00:33:29EFFORTS.
00:33:34TREASURY AGAIN WITH THE
00:33:36FINANCIAL SERVICES.
00:33:39SEC. BESSENT: WHETHER IT IS THE
00:33:44DEPARTMENT OF WAR, CYBERSECURITY, WE HAVE BEEN
00:33:48COORDINATING FOR SIX MONTHS ON THIS.
00:33:50IT IS AN INTERAGENCY PROCESS.
00:33:57I WOULD SAY CAN CROSS AND
00:34:00MICHAEL KRATZ SEO'S. REP. HUIZENGA: OK.
00:34:06IT MAY PROVE CRITICAL IN PROTECTING OUR FINANCIAL PLUMBING.
00:34:09THERE IS A LOT OF DISCUSSION ABOUT THAT.
00:34:14IS THERE ANYTHING YOU CAN SHARE OR PLAN TO PUBLISH ABOUT HOW ENTITIES IN THE FINANCIAL
00:34:18SERVICES SECTOR FROM TRADITIONAL
00:34:22FINANCIAL INSTITUTIONS TO THE LAYER ONE BLOCK CHAIN NETWORKS
00:34:26CAN QUALIFY TO PARTICIPATE? I THINK IT IS AN IMPORTANT DISCUSSION WE ARE HAVING.
00:34:28SEC. BESSENT: I THINK THAT IS
00:34:38VERY IMPORTANT.
00:34:39AS SOON AS THE NEWS OF MYTHOS
00:34:43CAME OUT I GATHERED THE LARGEST BANKS WHO HAPPENED TO BE IN D.C.
00:34:46AT TREASURY TO BEGIN DISCUSSING THIS.
00:34:48THE LARGEST BANKS HAVE GOOD
00:34:52CYBERSECURITY RESILIENCE AND THEY HAD BEEN VERY HELPFUL IN
00:34:55TERMS OF CREATING THOSE AND
00:35:00MOVING DOWN THE CAPITALIZATION CHAIN TO SMALL AND COMMUNITY
00:35:03BANKS THAT THEY ARE POPULATING THAT OUT INTO THE SERVICE PROVIDERS.
00:35:08REP. HUIZENGA: THE PLUMBING SIDE
00:35:13OF THIS ON THE WORKING GROUP? SEC. BESSENT: IT IS THE PLUMBING
00:35:16AND THE PATCHING OF A LOT OF OPEN SOURCE CODE.
00:35:19REP. HUIZENGA: I'M GOING TO MOVE
00:35:21ON TO SOMETHING A LITTLE BIT DIFFERENT. YOU AND I HAD PREVIOUS DISCOURSE
00:35:26ABOUT IN VARIOUS PUBLICATIONS
00:35:29ABOUT YOUR SHARED ASPIRATION FOR
00:35:33THE 3% TARGET.
00:35:35A BIPARTISAN FISCAL FORM.
00:35:40WE HAVE INTRODUCED WITH MY COLLEAGUE SCOTT PETERS FROM
00:35:44CALIFORNIA HAVE INTRODUCED A
00:35:45RESOLUTION CONGRESS SHOULD ADOPT
00:35:49THIS FISCAL TARGET OF A 3% OF
00:35:53GROSS DOMESTIC PRODUCT OR LOWER.
00:35:57I BELIEVE THIS IS THE MOST PRACTICAL, TANGIBLE GOAL WE CAN
00:36:02SET TO TURN THE TIDE ON OUR NATIONAL DEBT.
00:36:07WHAT IS YOUR CURRENT OUTLOOK ON
00:36:09THE 3% TARGET AND CAN YOU EVEN
00:36:14EXPLAIN WHY THIS FIRST STEP IS NOT JUST CRITICAL TO
00:36:16INTERNATIONAL FINANCES, BUT ALSO TO WORKERS ACROSS OUR NATION?
00:36:20SEC. BESSENT: THE RECENT 3% IS
00:36:23IMPORTANT BECAUSE AT 3% IS WHEN
00:36:27WE START PAYING DOWN DEBT.
00:36:30THE IMPORTANT THING TO LOOK AT
00:36:35IS THE DEFICIT.
00:36:38IN THE FIRST FISCAL YEAR, THE
00:36:41TRUMP ADMINISTRATION CAN COME
00:36:46FROM 6.3%.
00:36:47THE CALENDAR YEAR WAS 6.8%,
00:36:516.9%. THEY BROUGHT IT DOWN.
00:36:56SO WE ACTUALLY DID HAVE A FISCAL
00:36:58CONTRACTION AND WE WOULD HAVE CONTINUED THAT FISCAL
00:37:02CONTRACTION.
00:37:10REP. HUIZENGA: THE GENTLEMAN YIELDS BACK. CHAIR HILL: THE CHAIRMAN
00:37:15RECOGNIZES MR. SHERMAN OF CALIFORNIA.
00:37:17REP. SHERMAN: MR. CHAIRMAN, I
00:37:22WANT TO THANK YOU.
00:37:23IT IS ACCESS TO THE WORLD BANK,
00:37:28BUT WE HAVE CONCERNS ABOUT CHINA JUST A FEW MINUTES AGO WHEN WE
00:37:33HAD A CODE PINK STYLE DISRUPTION
00:37:36OF THIS HEARING, I SHOULD POINT
00:37:38OUT THAT CODE PINK IS FINANCED
00:37:42BY CHINA, THE CHINESE COMMUNIST PARTY.
00:37:47ONE MORE REASON TO BE CONCERNED ABOUT CHINA'S ROLE IN
00:37:51INTERNATIONAL FINANCE.
00:37:52THE WAR HAS DRIVEN UP GAS PRICES
00:37:56AND INTEREST RATES BEFORE THIS
00:38:00WAR, THE TENURE WAS AT 4%, NOW
00:38:03IT IS LARGELY AT 5%.
00:38:05LAST YEAR THE STRATEGIC
00:38:13PETROLEUM RESERVE. THEY HAVE NOT.
00:38:21NOW WE HAVE A BITCOIN RESERVE.
00:38:30I DON'T KNOW OF ANYONE WHO EVER HAD A BITCOIN RESERVE.
00:38:34IF YOU HAD AN OIL RESERVE AND IF
00:38:37YOU HAD RESERVES OF MINERALS,
00:38:40YOU HAVE A STRATEGIC RISK, THE
00:38:45MONEY THAT YOU PUT IT IN A BITCOIN RESERVE THAT YOU COULD
00:38:48LOSE IN A DAY, SHOULD BE IN STRATEGIC RESERVES OF THINGS WE NEED TO RUN THE ECONOMY.
00:38:54WE ARE TOLD THAT TARIFFS DON'T
00:38:59DRIVE INFLATION. BOY, DO WE NEED FINANCIAL LITERACY IN THIS COUNTRY.
00:39:05WE HAVE FOCUSED SIGNIFICANTLY ON
00:39:09THE ROLE OF THE U.S. DOLLAR WHICH IS UNDERMINED BY AN
00:39:12INCREDIBLY EROTIC FEDERAL
00:39:16ADMINISTRATION THAT MAKES US THE LAUGHING STOCK THE WORLD.
00:39:19IT IS EXACERBATED BY THE CRINGEY
00:39:22TARIFF POLICIES AND NOW WE HAVE A WAR WITH CANADA.
00:39:26THE WHOLE PURPOSE OF CRYPTO WAS TO DISPLACE OR PARTIALLY
00:39:30DISPLACE THE DOLLAR AS THE WORLD'S RESERVE CURRENCY.
00:39:35WHAT I'M PARTICULARLY CONCERNED ABOUT IS THAT IN THE SENATE THEY
00:39:38ARE CONSIDERING THE CLARITY ACT
00:39:43WITHOUT PLUGGING THE LOOPHOLE IN
00:39:49STABLE COIN.
00:39:50THE DEAL WAS STABLE COIN, NOW
00:39:56THE CRYPTO GUYS HAVE SPENT TENS
00:40:00OF MILLIONS ON LEGAL FEES TO
00:40:02EVADE THAT PROHIBITION ON INTEREST ON STABLE COIN.
00:40:07A RECENT STUDY HAS SHOWN THAT
00:40:09COULD LEAD TO A $1.5 TRILLION
00:40:13REDUCTION IN BANK DEPOSITS
00:40:15MEANING THE PRIMARY WAY WE FINANCE SMALL BUSINESS IN THIS
00:40:19COUNTRY WOULD HAVE $1.5 TRILLION
00:40:21LESS, NOT TO MENTION THERE COULD
00:40:24BE $1.5 TRILLION LESS FOR THE
00:40:27COMMUNITY INVESTMENT ACT.
00:40:29AND FINALLY STABLE COIN IS A
00:40:34SYSTEM DESIGNED TO BE ALTAR SECRET, TO DEFEAT LAW
00:40:37ENFORCEMENT, AND TO IGNORE DATA
00:40:43FROM YOUR CUSTOMER.
00:40:47MR. SECRETARY, ONE OF THE CORE PRINCIPLES OF THE U.S. BANKING
00:40:51SYSTEM IS ACCOUNTABLE --
00:40:55ACCOUNTABILITY RESTS WITH IDENTIFIABLE PEOPLE AND INSTITUTIONS.
00:40:59DECENTRALIZED COINS OPERATE
00:41:04THROUGH AUTONOMOUS MECHANISMS THAT LACK ACCOUNTABILITY.
00:41:11GIVEN THE RECORD NUMBER OF D5 EXPLOITS AND THE USE OF AI
00:41:14EXPLODING CODE, ARE YOU
00:41:17CONCERNED THAT A GROWING SHARE OF FINANCIAL ACTIVITY COULD
00:41:20MIGRATE TO SYSTEMS WHERE THERE
00:41:22IS NO ACCOUNTABLE PARTY AND NO
00:41:26CUSTOMER REQUIREMENTS? WHAT IMPLICATIONS WOULD THIS
00:41:29HAVE FOR OUR EFFORTS AGAINST
00:41:30ILLICIT FINANCE AND WHAT COULD
00:41:34THAT HAVE ONE OF THE INTEGRITY OF INTERNATIONAL FINANCIAL SYSTEMS?
00:41:36SEC. BESSENT: THE PASSAGE OF THE
00:41:40CLARITY ACT GIVES TREASURY MORE AUTHORITY IS TO SEEK THIS OUT.
00:41:49REP. SHERMAN: THE CLARITY ACT,
00:41:52BOLDEN'S AND MAKES MORE POPULAR
00:41:56THE RIVAL TO THE U.S. DOLLAR, WHICH IS CRYPTO, OR AT LEAST
00:42:00THEY ARE THE NEWEST RIVAL TO THE U.S. DOLLAR AND THEY HAVE SAID
00:42:04THAT THEIR PURPOSE.
00:42:09AMERICA OWNS COKE AND YOU ARE SUGGESTING AN VEXING AND PEPSI.
00:42:14WE DON'T NEED THE COMPETITION ESPECIALLY WHEN WE ARE DOING
00:42:18SUCH A TERRIBLE JOB OF RUNNING OUR ECONOMY.
00:42:20CHAIR HILL: THE CHAIR RECOGNIZES
00:42:24THE GENTLEMAN FOR FIVE MINUTES.
00:42:25>> MR. SECRETARY, THANKS FOR BEING HERE TODAY.
00:42:30I WANT TO GO BACK TO CHINA IF I COULD.
00:42:34YOUR LITTLE MORE BASIC KIND OF APPROACH.
00:42:38THE IMF IS SUPPOSED TO PROMOTE
00:42:40GLOBAL FINANCIAL STABILITY, BUT
00:42:42IT APPEARS KIND OF ON A REGULAR
00:42:44BASIS IT CONTINUES TO USE THESE
00:42:51PRACTICES THAT MANAGES THE
00:42:52EXCHANGE RATE AND THEY CERTAINLY
00:42:56DELAY DEBT RESTRUCTURING I GUESS HE WOULD CALL IT IN DEVELOPING COUNTRIES.
00:43:03WHAT ARE WE DOING OR WHAT CAN WE
00:43:04DO TO USE OUR INFLUENCE TO HOLD
00:43:09CHINA MORE ACCOUNTABLE AND MAKE
00:43:15SURE BEIJING DOES NOT CONTINUE BLOCKING ALL OF THESE DEBT
00:43:18RESTRUCTURINGS AND DISTORTING?
00:43:22DISTORTING THE INTERNATIONAL SYSTEM, RIGHT? COULD YOU GIVE US YOUR THOUGHTS
00:43:26ON THAT?
00:43:29SEC. BESSENT: WE WILL SEE THE
00:43:34FIRST DEBT RESTRUCTURING SINCE THEN. AND IT IS.
00:43:39THE CHINESE SYSTEM OF LENDING
00:43:41INCLUDES MANY HIDDEN PROVISIONS
00:43:46AND TRANSPARENTLY IN DEBT
00:43:50RESTRUCTURING IS THE ULTIMATE FEATURE.
00:43:55THE IMF HAS JOINED US IN
00:43:59BELIEVING THAT MUST HAPPEN AND WE MUST HAVE TRANSPARENCY.
00:44:03IT IS ALSO MY OPINION THAT THIS
00:44:08INITIATIVE HAS GONE FROM A LENDING TO A COLLECTION OPERATION.
00:44:15THEY ARE BANKRUPTING MANY OF THEIR BORROWERS.
00:44:16REP. FITZGERALD: I KNOW THE
00:44:19DISCUSSIONS HAPPEN, BUT THE
00:44:22EFFORTS BY CHINA AND REALLY
00:44:25OTHER COUNTRIES AND REDUCING THE RELIANCE ON THE DOLLAR.
00:44:31CAN YOU TELL US WHY MAINTAINING
00:44:35THE DOLLAR'S STATUS AS THE PRIMARY RESERVE CURRENCY MATTERS?
00:44:39I KNOW THAT SEEMS LIKE THIS IS THE FINANCIAL SERVICES COMMITTEE.
00:44:43WHAT IS YOUR TAKE ON THAT?
00:44:46SEC. BESSENT: CONTRARY TO THE
00:44:50GENTLEMAN FROM CALIFORNIA, WHEN
00:44:55THE LEADER DOESN'T FEAR COMPETITION, COMPETITION MAKES
00:44:57US BETTER WE HAVE THUS FAR
00:45:02DISMISSED COMPETITION.
00:45:08THE U.S. DOLLAR CONTINUES TO THRIVE.
00:45:10WE SHOW GLOBAL TRANSACTIONS IN
00:45:12DOLLARS WENT UP THIS YEAR AND THE ONLY THING WE HAVE SEEN IS
00:45:16THE DIMINISHMENT THROUGH THE
00:45:22DECREASE OF MOSTLY RUSSIA AND
00:45:25CHINA AND WE HAVE SEEN MANY
00:45:28OTHER COUNTRIES AND AS A MATTER
00:45:31OF FACT WE JUST HAD TWO OF THE
00:45:36MOST SUCCESSFUL TREASURY AUCTIONS IN 20 YEARS WHICH SPEAKS TO THE CREDIBILITY OF OUR
00:45:40SYSTEM AND WHAT THIS ADMINISTRATION IS DOING IN THE GLOBAL CONFIDENCE IN US.
00:45:44REP. FITZGERALD: WE OFTENTIMES
00:45:48FOCUS ON WHAT THE ADMINISTRATION CAN DO, WHAT SHOULD CONGRESS BE
00:45:51DOING TO PRESERVE NOT JUST THE
00:45:54DOLLAR AS A CURRENCY, BUT JUST TO STABILIZE THE MARKETS OVERALL?
00:46:01SEC. BESSENT: WE WILL BE TALKING
00:46:05ABOUT A FISCAL CONSOLIDATION THAT IS COMING.
00:46:09THAT IS IMPORTANT.
00:46:12WE HAVE TO GET OUR HOUSE IN ORDER.
00:46:15IT IS NOT A PRICE ON THE SCREEN, IT IS A SET OF BEHAVIORS.
00:46:20WHAT WE HAVE SEEN WHERE WE ARE
00:46:23TRADING REGULATORY CERTAINTY,
00:46:25TAX CERTAINTY, TRADE CERTAINTY
00:46:30IS BRINGING IN TRILLIONS OF DOLLARS INTO THE U.S. SO IT IS
00:46:34TO HELP WITH THOSE POLICIES. REP. FITZGERALD: THANK YOU FOR
00:46:38BEING HERE TODAY. I YIELD BACK. CHAIR HILL: THE CHAIR RECOGNIZES
00:46:42THE RANKING MEMBER OF OUR SUBCOMMITTEE, MR. LYNCH. YOU ARE RECOGNIZED FOR FIVE
00:46:46MINUTES.
00:46:47REP. LYNCH: MR. SECRETARY, THANK
00:46:52YOU FOR BEING HERE.
00:46:55THE SECRETARY OF THE TREASURY HAS DIRECT INFLUENCE ON THE
00:46:59ABILITY TO ADVISE THE PRESIDENT
00:47:01ON MATTERS OF AI FROM A
00:47:07REGULATORY STANDPOINT AS WELL AS
00:47:11IN NATIONAL SECURITY STANDPOINT.
00:47:14SOMETIMES I HEAR THE PRESIDENT
00:47:15TALK ABOUT AI AND I HAVE THE HONOR OF BEING THE RANKING
00:47:20DEMOCRAT ON THIS COMMITTEE AND ON AI AND ON CRYPTO AND I LISTEN
00:47:24TO THE PRESIDENT AND I DO NOT
00:47:28BELIEVE HE HAS A GRASP OF WHAT
00:47:35WE ARE DEALING WITH WITH AI.
00:47:37I'LL BE HONEST, I DON'T THINK THE PRESIDENT COULD SPELL AI IF
00:47:41I GAVE HIM THE FIRST LETTER.
00:47:45HE CALLED IT A HOAX.
00:47:49YOU ARE IN LEADERSHIP AT TREASURY.
00:47:58A FAR MORE LOGICAL AND THOUGHTFUL THAN WHAT I'M HEARING
00:48:02FROM THE WHITE HOUSE.
00:48:04AND I'M NOT TRYING TO PUT YOU ON
00:48:06THE SPOT I BELIEVE WE HAVE SEVEN
00:48:13JET -- SUGGESTED SOME THINGS
00:48:17WITH REGARD TO AI THAT ARE
00:48:19CAUTIONARY AND WHEN I HEAR THE
00:48:21PRESIDENT SAY THIS IS ALL A HOAX
00:48:26, I'M JUST TRYING TO FIGURE OUT,
00:48:29DO YOU THINK THE PRESIDENT
00:48:32UNDERSTANDS THAT WHEN WE TALK
00:48:33ABOUT AI IT'S NOT LIKE A CAR.
00:48:40SOMETIMES HE TALKS AND THOSE TURNS.
00:48:43WE ARE GROWING AI AND A LAB. AND NOW BASED ON STATEMENTS FROM
00:48:48ANTHROPIC AND OPENAI AND OTHERS,
00:48:52ELON MUSK, WE ARE HAVING A
00:48:58CONTROL PROBLEM.
00:49:02THIS INCIDENT WITH HUGGING FACE.
00:49:08WE HAVE LOST CONTROL. DO YOU THINK THE PRESIDENT
00:49:13UNDERSTANDS THAT IT IS NOT AS
00:49:17SIMPLE AS WHAT HE HAS DESCRIBED?
00:49:21DO YOU THINK THE PRESIDENT
00:49:26UNDERSTANDS THAT IT PROBABLY DOESN'T MATTER WHETHER THE GOOD
00:49:30GUYS DEVELOP THE SUPER INTELLIGENCE OR THE BAD GUYS
00:49:32DEVELOP THE SUPER INTELLIGENCE IF YOU DON'T HAVE CONTROL OF
00:49:35THAT ENTITY, IF IT HAS
00:49:40PREFERENCES, IN WAYS THAT IS
00:49:47INIMICAL TO THE EXISTENCE OF
00:49:49HUMANITY, IT WON'T MATTER.
00:49:57IT WILL BE A THREAT TO US.
00:50:03DOES THE PRESIDENT GET THAT, MR. SECRETARY?
00:50:07SEC. BESSENT: CONGRESSMAN, I DO
00:50:11TAKE EXCEPTION, IT DOES WETTER
00:50:15-- MATTER WHETHER THE GOOD GUYS OR THE BAD GUYS HAVE THIS AS A
00:50:19PERSON WHO MATTERS THE RELATIONSHIP WITH CHINA ON AI, IT MATTERS A GREAT DEAL.
00:50:23REP. LYNCH: BUT WE ARE HAVING
00:50:27CONTROL PROBLEMS. SO IF WE BUILD SOMETHING WE
00:50:31CAN'T CONTROL AND THE CHINESE
00:50:32BUILD SOMETHING YOU CAN CONTROL,
00:50:35THE ENTITY ITSELF IS A DANGER TO
00:50:37US ALL, AT THE END OF THE DAY,
00:50:43IF WE CREATE A SUPER INTELLIGENCE THAT IS BEYOND OUR
00:50:46CONTROL AND DOES NOT FOLLOW OUR
00:50:50INSTRUCTIONS, THE EVALUATING
00:50:53PIECE OF THIS.
00:50:58WITH THE VALUES THAT YOU HAVE,
00:51:01THAT WE HAVE IS A DEMOCRACY.
00:51:04THAT IS WHY IT HAS BEEN
00:51:06IMPOSSIBLE TO DO SO FAR, YET WE HAVE THIS RACE.
00:51:14I HAVE GREAT RESPECT FOR MY REPUBLICAN COLLEAGUES ON THIS.
00:51:17WE TALK ABOUT THIS RACE, THIS RACE AGAINST CHINA, WE CAN'T
00:51:21SLOW DOWN, WE NEED TO BEAT THEM.
00:51:25WE DON'T CONTROL THE ENTITY WE ARE TRYING TO CREATE AND NEITHER DOES CHINA.
00:51:38[INDISCERNIBLE]
00:51:40SEC. BESSENT: THEY HAD A BREACH
00:51:43AND SENT CHINESE WEAPONS PLANS BACK TO ANTHROPIC.
00:51:47REP. LYNCH: I THOUGHT YOU MIGHT
00:51:52BE ABLE TO TALK SENSE TO THE
00:51:54PRESIDENT ABOUT AI.
00:52:01SEC. BESSENT: THE PRESIDENT IS COMPLETELY ALIGNED WITH JENSEN WONG THE CEO OF NVIDIA. [LAUGHTER]
00:52:06CHAIR HILL: THE CHAIR RECOGNIZES
00:52:14THE GENTLEMAN. >> THANK YOU.
00:52:17SEC., THANK YOU FOR BEING HERE.
00:52:19THANK YOU FOR THE WORK ON
00:52:25GETTING THAT BELL.
00:52:25SEC. BESSENT: THAT WAS YOUR
00:52:29WORK, CONGRESSMAN. >> WELL WE GOT IT ACROSS THE FINISH LINE.
00:52:35I WANT TO TALK ABOUT REGULATIONS.
00:52:42$11 TRILLION, MORE THAN 40% OF
00:52:45THE FINANCING.
00:52:50SECRETARY, WHAT STEPS HAS
00:52:53TREASURY TAKEN ON FINANCIAL
00:52:57REGULATORS TO ENSURE OUR POLICIES CONTINUE TO ALLOW
00:53:01FOREIGN BANKS TO COMPETE ON A LEVEL PLAYING FIELD HELPING THE
00:53:04U.S. REMAINS THE WORLD'S FINANCIAL SECTOR?
00:53:07SEC. BESSENT: THAT'S AN EXCELLENT QUESTION.
00:53:11WE HAVE AN UNUSUAL REGULATORY
00:53:14SYSTEM IN THAT WE HAVE THREE FEDERAL REGULATORS, THE FEDERAL
00:53:18RESERVE, THE FBI SEE, AND THE OFFICE OF THE COMPTROLLER.
00:53:24THEN THE STATE LEVEL REGULATIONS.
00:53:26WE ARE TRYING TO MAKE SURE THAT ALL THE REGULATORS ALIGNED WITH
00:53:30BEST PRACTICES AND THE
00:53:36REGULATION IN THE SYSTEM AND THE SIZE OF THE BANKS.
00:53:39REP. GARBARINO: THAT'S GREAT. I KNOW THAT IS IMPORTANT.
00:53:48WE WANT TO MAKE SURE WE ARE PROTECTED BUT ACTUALLY STILL
00:53:51HAVE INVESTMENT SO I'M GLAD WE ARE DOING THAT. SEC. BESSENT: THAT IS WHY WE ARE
00:53:55TRYING TO UNIFY THE CAPITAL MARKETS TO BE MORE LIKE US.
00:53:57REP. GARBARINO: EVERYBODY WANTS TO BE LIKE US. [LAUGHTER]
00:54:09CLIENT TRADES TYPICALLY DO NOT COME OFF THE DECLARED BALANCE SHEET.
00:54:14THE SUBSIDIARIES OF FOREIGN PARENT COMPANIES MUST ALSO COMPLY.
00:54:24THE SPACE MUST CLEAR TRAITS ON
00:54:30THE BALANCE SHEET, I'M CONCERNED
00:54:37THAT MAJOR MARKET PARTICIPANTS
00:54:38BECAUSE ACCOUNTING COULD IMPACT,
00:54:45WE DO NOT WANT INTERNATIONAL
00:54:47STANDARDS THAT IMPACT THE TREASURY RECORDS.
00:54:53WOULD YOU BE WILLING TO WEIGH IN
00:54:57BEFORE THE GO LIVE DATE?
00:55:00SEC. BESSENT: WE WOULD BE
00:55:05DEDICATED TO WORKING ON THIS WITH YOU KEEPING THE U.S.
00:55:10TREASURY MARKET THE DEEPEST, THE
00:55:12BROADEST WITH US. WE WANT TO MAKE SURE WE
00:55:16PRIORITIZE BUT WE ALSO WANT TO
00:55:20PRIORITIZE.
00:55:21REP. GARBARINO: THANK YOU VERY
00:55:25MUCH FOR THAT AND I LOOK FORWARD TO WORKING WITH YOU AND YOUR TEAM.
00:55:31CONGRESS IS DELIVERED IN DISTINGUISHING BETWEEN
00:55:35DECENTRALIZED TECHNOLOGIES THAT
00:55:38DO NOT CURRENTLY CUSTOMIZE THE
00:55:45CONTROL TERM FACTION.
00:55:45HOW IS TREASURY ENSURING THOSE
00:55:50DO NOT IMPOSE INTERMEDIARY STYLE REQUIREMENTS ON SOFTWARE
00:55:53DEVELOPERS OR TECHNOLOGY PROVIDERS? SEC. BESSENT: WE ARE MAKING THE
00:55:57PROCESS RIGHT NOW.
00:56:01WE HAVE TAKEN SUBSTANTIAL INPUT FROM CONGRESS AND STAKEHOLDERS
00:56:04AS WE AIM TO KEEP AMERICA THE CRYPTO CAPITAL OF THE WORLD.
00:56:07REP. GARBARINO: AGAIN, I JUST
00:56:10WANT TO MAKE CLEAR THAT SOME
00:56:15WERE EXCLUDED.
00:56:18LAST, I WANT TO RETURN TO RETIREMENT SECURITY.
00:56:27MORE OPPORTUNITIES FOR AMERICANS TO SAFELY RETIRE.
00:56:30CAN YOU PROVIDE AN UPDATE ON HOW
00:56:33THOSE EFFORTS FIT INTO THE PRESIDENT'S EXECUTIVE ORDER?
00:56:38SEC. BESSENT: WE ARE WORKING TO
00:56:41IMPLEMENT THAT AND TO DO THAT IN
00:56:45A SAFE AND SOUND MANNER AS QUICKLY AS POSSIBLE.
00:56:48REP. GARBARINO: OK, DO WE HAVE A TIMELINE?
00:56:51SEC. BESSENT: MY STUFF AT CONTACT YOUR STAFF.
00:56:54REP. GARBARINO: OK, I APPRECIATE
00:57:00THAT, MR. SECRETARY. I YIELD BACK. CHAIR HILL: THE CHAIR RECOGNIZES
00:57:04THE GENTLEMAN FROM COLORADO FOR FIVE MINUTES. >> THANK YOU, MR. CHAIRMAN.
00:57:09THANK YOU, MR. SECRETARY FOR BEING WITH US TODAY.
00:57:12I HAVE SO MUCH I WOULD LIKE TO ADDRESS IN THE SHORT TERM THAT I
00:57:16HAVE.
00:57:21I AM HIGHLIGHTING THE CONCERNS THE AMERICAN PEOPLE HAVE, THE CRIPPLED ECONOMY.
00:57:25THE CONSEQUENCES OF THE IRAN
00:57:29WAR, THE PEOPLE WHO ARE STRUGGLING EVERY DAY TO MAKE ENDS MEET.
00:57:33IT IS THE ENDLESS CORRUPTION AND
00:57:37THE SELLING OFF OF THE AMERICAN PEOPLE'S PRIVATE EARNINGS FOR
00:57:40THE BENEFIT OF TRUMP AND HIS FAMILY.
00:57:44IN JUST THE LAST FEW DAYS I
00:57:47COULDN'T BELIEVE THE NEWS THAT
00:57:49WAS COMING OUT, THAT JARED
00:57:53KUSHNER WAS DOING HIS OWN
00:57:55BUSINESS DEALS WHEN HE IS SUPPOSED TO BE ENGAGING IN
00:57:59MIDDLE EAST PEACE TALKS.
00:58:04A POST WEDDING CELEBRATION WITH A RUSSIAN OLIGARCH.
00:58:09THE VIDEO FOOTAGE OFFERING FROM
00:58:17HUNDREDS OF THOUSANDS OF DOLLARS .
00:58:21THE CORRUPTION IS UNPRECEDENTED IN EVERY WAY.
00:58:25THAT HAS CONSEQUENCES TO AMERICANS.
00:58:29WE ARE ALSO CONCERNED ABOUT JANUARY 6 VIOLENT
00:58:33INSURRECTIONISTS BEING PAID OUT.
00:58:37IN A DEAL THAT YOU ARE
00:58:40OVERSEEING WITH THE IRS FROM --
00:58:45EXEMPTING THE TRUMP FAMILY FROM ANY FINES THEY MIGHT HAVE
00:58:49COMMITTED IN THE -- CRIMES THEY MIGHT HAVE COMMITTED IN THE PAST.
00:58:55I HAVE YET TO RECEIVE ANY
00:58:59INFORMATION ON THIS.
00:59:00CAN YOU COMMIT RIGHT NOW TODAY
00:59:04THAT THERE IS OVERSEEING
00:59:11FEEDBACK?
00:59:12SEC. BESSENT: YOU ARE CONFUSED,
00:59:16I DIDN'T OVERSEE IT. IT IS DONE BY THE DEPARTMENT OF
00:59:19JUSTICE AND WE TAKE INSTRUCTIONS FROM THE ATTORNEY GENERAL.
00:59:22REP. PETTERSEN: BUT MR. SECRETARY, YOU OVERSEE THE IRS.
00:59:26YOU OVERSEE THE DOLLARS COMING IN AND OUT OF THE TREASURY.
00:59:29SEC. BESSENT: THEY SUPERSEDE THAT AUTHORITY.
00:59:31REP. PETTERSEN: MR. SECRETARY,
00:59:33YOU ARE SUPPOSED TO PROTECT THE
00:59:36AMERICAN PEOPLE'S TAX DOLLARS. CAN YOU COMMIT THAT YOU WILL NOT DISTRIBUTE ANY OF THESE FUNDS?
00:59:41SEC. BESSENT: IT IS THE SUBJECT
00:59:45OF LITIGATION SO I CAN'T TALK ABOUT IT I'M NOT SURE WHICH FUNDS YOU ARE TALKING ABOUT.
00:59:48REP. PETTERSEN: MR. SECRETARY,
00:59:51ANY FUNDS THAT WOULD PAY OUT
00:59:54JANUARY 6 INSURRECTIONISTS.
00:59:57ANY TAXPAYER DOLLARS GOING OUT TO PAY OUT THESE INSURRECTIONISTS.
01:00:02AS WELL AS A BILL EXEMPTING TRUMP AND HIS FAMILY FROM ANY
01:00:06INVESTIGATIONS WITH THOSE DEALINGS. SEC. BESSENT: AGAIN, THAT IS IN
01:00:10LITIGATION, BUT THAT IS A MATTER FOR THE ATTORNEY GENERAL. REP. PETTERSEN: MR. SECRETARY.
01:00:20I AM SPEAKING TO PEOPLE DIRECTLY ABOUT THE IMPACTS OF THIS
01:00:24ADMINISTRATION.
01:00:25I'M SHOCKED WHEN I SEE YOU ON TV
01:00:30ABOUT WHAT THE ECONOMY HAS DONE,
01:00:33THE ECONOMY IS GETTING BETTER, THAT COULDN'T BE FURTHER FROM THE TRUTH.
01:00:38PEOPLE ARE STRUGGLING TO MAKE ENDS MEET, THE SKYROCKETING
01:00:41TARIFFS ARE HITTING AN AVERAGE OF $25,000 A MONTH.
01:00:46IN COLORADO, THERE ARE HUGE
01:00:52IMPLICATIONS FOR THE TRADE WAR THAT TRUMP HAS PURSUED.
01:00:5450% TARIFFS ON PRODUCTS THAT WE
01:00:59RELY ON.
01:01:03OUR FAMILIES GETTING HEALTH CARE
01:01:06, OUR ECONOMY FROM THOSE POLICIES.
01:01:18YOU KNOW BETTER IN THE ADMINISTRATION, YOU KNOW WHAT IS HAPPENING TO THE PEOPLE ACROSS
01:01:22THIS COUNTRY AND YET YOU
01:01:25CONTINUE TO STAND WITH TRUMP'S
01:01:29TALKING POINTS. WE NEED BETTER.
01:01:32WE NEED A CHECK ON DONALD TRUMP.
01:01:38WE DON'T HAVE ANY.
01:01:41MR. SECRETARY, I WANT TO READ A
01:01:48COUPLE OF STORIES, I HAVE
01:01:49COUNTLESS STORIES FROM PEOPLE
01:01:53ABOUT THE CONSEQUENCES EVERY DAY.
01:01:55MY HUSBAND AND I HAVE CHILD CARE
01:02:00COSTS, GROCERY BILLS THAT GO UP EVERY WEEK.
01:02:05THIS IS JUST THE TIP OF THE ICEBERG. .
01:02:09CHAIR HILL: THE CHAIRWOMAN'S
01:02:12TIME HAS EXPIRED. THE GENTLEMAN FROM NEW YORK IS
01:02:16RECOGNIZED FOR FIVE MINUTES. >> MR. SECRETARY, THANK YOU FOR
01:02:20BEING HERE AND THANK YOU FOR
01:02:21YOUR LEADERSHIP ON OPERATION
01:02:25ECONOMIC OUTCAST, COULD YOU
01:02:27DESCRIBE THAT THE IMPACT IT IS
01:02:32HAVING ONE OF THE IRANIAN ECONOMY?
01:02:33SEC. BESSENT: I WILL JUST QUOTE
01:02:36THE PRESIDENT OF IRAN, THE SPEAKER OF THE PARLIAMENT IN THE
01:02:39CENTRAL BANK THAT THE ECONOMY IS IN DIRE STRAITS.
01:02:49WE HAVE SEEN THE ECONOMY
01:02:52COLLAPSED WITH THE ECONOMY, THEY
01:03:05HAVE GAS LINES THAT THEY HAVE TO
01:03:10WAIT FOR FUEL. THE ECONOMIC OUTCAST IS A
01:03:13COMBINATION OF THE BLOCKADE AND THE MONTHS THAT WE HAVE SPENT
01:03:17MAPPING THE NODES THROUGH THE
01:03:18PAYMENT SYSTEM THAT WE ARE CRACKING DOWN ON THEM.
01:03:24AND I BELIEVE THESE VIOLENT OUTBURSTS WE ARE SEEING FROM THEM.
01:03:28REP. LAWLER: APPRECIATE IT.
01:03:31KEEP UP THE STRONG WORK ON THAT FRONT.
01:03:33ONE OTHER ISSUE RELATED TO
01:03:38RESTITUTION, THERE IS GROWING EVIDENCE THAT CERTAIN SWISS BANK ACCOUNTS HOLDING ASSETS
01:03:43BELONGING TO THOSE NEVER
01:03:45ACCOUNTED FOR OR INCLUDED IN THE
01:03:49ORIGINAL 1998 SWISS BANK SETTLEMENT.
01:03:52MR. SECRETARY, GIVEN THAT WE ARE
01:03:56OVERSEEING MATTERS OF THIS
01:04:00RECOVERY, ARE YOU AWARE OF THESE UNACCOUNTED FOR ACCOUNTS?
01:04:04SEC. BESSENT: YES.
01:04:05REP. LAWLER: DO YOU BELIEVE IT
01:04:09WOULD BE APPROPRIATE FOR THE DEPARTMENT TO REVISIT OR PRESS FOR THE SETTLEMENT TO BE
01:04:13REOPENED OR EXPANDED TO ENSURE
01:04:15THESE ASSETS ARE RETURNED TO SURVIVORS AND THEIR DESCENDANTS?
01:04:24TREASURY DEPARTMENT HAS VERY
01:04:25ACTIVE IN THE AI IS, BOTH WITHIN
01:04:28THE FINANCIAL SECTOR ITSELF AND MORE BROADLY IN THE TECH STACK.
01:04:32CAN YOU SHARE MORE INFORMATION ABOUT TREASURY'S INVOLVEMENT WITH EFFORTS TO CREATE A SIGN
01:04:35STANDARDS FOR AI DEVELOPERS AND HOW BANK SHOULD BE THINKING
01:04:39ABOUT AI WITHIN THEIR INSTITUTIONS?
01:04:41>> YES, SO AS I SAID EARLIER,
01:04:45THIS BEGAN BACK IN MARCH AND WE
01:04:48HAVE ENGAGED ON A DAILY, WEEKLY,
01:04:51AND MONTHLY BASIS, WE BEGAN WITH
01:04:54THE LARGEST BANKS AND WITH THEIR
01:04:59CHIEF INFORMATION OFFICERS, WITH THEIR LEADERSHIP, AND WE HAVE
01:05:03TRANSFERRED MUCH OF THAT INTO
01:05:07PROJECT GOLD EAGLE WHICH IS A
01:05:10CLEARINGHOUSE FOR EVERYTHING
01:05:13THAT WE LEARN ABOUT RESILIENCY WITHIN THIS, AND WE CONTINUE TO
01:05:16ENGAGE WITH THEM, AND I CAN TELL
01:05:18YOU THAT THE FINANCIAL SECTOR,
01:05:22FROM THE LARGEST BANKS TO THE SMALLEST BANKS, FROM DOMESTIC
01:05:25BANKS TO INTERNATIONAL BANKS,
01:05:27HAVE BEEN VERY GOOD PARTNERS, AND THEY ARE WORKING ON RESILIENCY.
01:05:31>> APPRECIATED.
01:05:35THE EUROPEAN UNION HAS BEEN ATTEMPTING TO ASSERT REGULATORY
01:05:38AUTHORITY ON AMERICAN ENTERPRISE THROUGH THE DUE DILIGENCE
01:05:42DIRECTIVE. IT WOULD FORCE U.S. COMPANIES,
01:05:44MANY WITH ONLY MODEST EUROPEAN EXPOSURE, TO COMPLY WITH E.U.
01:05:49MANDATED SUPPLY CHAIN AUDITS, LIABILITY STANDARDS AND ITS
01:05:51SPEED DRIVEN OPERATIONAL CHANGES.
01:05:55GIVEN THE ADMINISTRATION STATED GOAL OF RESTORING STRONG ECONOMIC GROWTH, HOW DO YOU
01:05:59ASSESS THE IMPACT OF THIS KIND OF FOREIGN REGULATORY OVERREACH
01:06:03ON AMERICA'S ABILITY TO REACH A SUSTAINED REAPER'S GROWTH RATE?
01:06:07SEC. BESSENT: CONGRESSMAN, I
01:06:11USED TO BE A LIFEGUARD AND ONE OF THE FIRST THING THEY TEACH
01:06:14YOU IN LIKE GUARDING IS A DROWNING PERSON TRIES TO GRAB YOU AND PULL YOU DOWN WITH THEM.
01:06:18ON THE G20, THE AGENDA INCLUDE
01:06:24SUBSTANTIAL DEREGULATION AND WE HOPE THAT YOU WILL FOLLOW THE
01:06:28FANTASTIC REPORT FROM THE FORMER
01:06:28HEAD OF THE ECB, MARIO DRUGGIE,
01:06:32ON HOW THEY CAN SOLVE THE GROWTH PROBLEMS, BUT THE WAY TO DO IT
01:06:34IS NOT TO ENCUMBER THE DYNAMIC
01:06:39ECONOMIES, IS FOR THEM TO FREE THEMSELVES.
01:06:42REP. LAWLER: IN NEW YORK AND
01:06:48CALIFORNIA, THEY HAVE AGGRESSIVE
01:06:51PRACTICES TO TRY TO SWEEP UNCLAIMED PROPERTY INTO THE
01:06:55STATE TO EFFECTIVELY PAY FOR THEIR BLOATED BUDGETS.
01:06:59HOW ARE YOU AND THE ADMINISTRATION GOING TO PROTECT
01:07:02THE TRUMP ACCOUNTS FROM BEING SWEPT UP BY CALIFORNIA AND NEW
01:07:06YORK IN THESE GRANDIOSE ESCHEAT
01:07:11TREATMENT PRACTICES THAT THEY HAVE PUT FORTH.
01:07:14WE ARE WORKING ON THE SAFER ACT AND WOULD LOVE TO WORK WITH YOU ON THAT.
01:07:17SEC. BESSENT: YES, THAT COULD BE
01:07:21A PROBLEM, AGAIN, DROWNING PEOPLE TRYING TO PULL EVERYONE DOWN WITH THEM.
01:07:24>> LET ME ASK YOU TO RESPOND TO
01:07:29MR. LAWLER IN WRITING ON THAT QUESTION. THE CHAIR RECOGNIZES THE RANKING
01:07:33MEMBER MR. GREEN.
01:07:36YOU ARE RECOGNIZED FIVE MINUTES.
01:07:37>> THANK YOU FOR APPEARING
01:07:41TODAY, MR. SECRETARY. QUICK QUESTION FOR YOU, AT THE
01:07:44PURCHASE OF THE MEME COIN, WHAT
01:07:46DOES ONE GET TO EVIDENCE THE PURCHASE?
01:07:48SEC. BESSENT: I'M SORRY?
01:07:51>> A PERSON PURCHASING A MEME
01:07:56COIN, AT THE TIME OF PURCHASE
01:07:58YOU GET SOMETHING TO EVIDENCE THE PURCHASE?
01:08:00SEC. BESSENT: I ASSUME IT IS AN ELECTRONIC RECEIPT.
01:08:03>> ELECTRONIC RECEIPT?
01:08:07AND HOW DOES ONE ACQUIRE VALUE AFTER HAVING PURCHASED THE MEME COIN?
01:08:11SEC. BESSENT: AGAIN, VALUE CAN TAKE MANY DIFFERENT THINGS.
01:08:15HOW DO YOU --
01:08:18>> LET'S TALK ABOUT THE MEME
01:08:22COIN RIGHT NOW. SEC. BESSENT: YOU WOULD GET IT
01:08:26THROUGH APPRECIATION, OR MANY PEOPLE MAY JUST BITE FOR CAPITAL STABILITY.
01:08:36REP. GREEN:. SOME PEOPLE BITE ASSUMING THAT
01:08:39WILL MAKE SOME SORT OF PROFIT OFF OF A PURCHASE AND IS IT FAIR
01:08:43TO SAY THAT THAT PROFIT IN MANY
01:08:44INSTANCES WILL BE BASED ON
01:08:50PURCHASED BY ANOTHER PERSON AT A HIGHER PRICE?
01:08:56THE PRESIDENT'S DOLLAR MEME COIN ALLOWED HIM TO MAKE $635 BILLION
01:09:00LAST YEAR.
01:09:03INVESTORS LOST $3.81 BILLION.
01:09:07THE COIN FELL FROM $75 AT
01:09:09LAUNCHING TO $1.65.
01:09:14THOSE PURCHASES THAT WERE MADE
01:09:18BY PERSONS BUYING THE MEME COIN,
01:09:24THEY PURCHASED A DIGITAL TOKEN WHICH AMOUNTS TO NOTHING.
01:09:29THEY DON'T GET ANYTHING BEYOND
01:09:31THE TOKEN IN THE WALLET. NOTHING MORE THAN THAT.
01:09:38AND THERE IS THIS TERM THAT I'M NOT FOND OF, BUT IT'S A TERM
01:09:42THAT UTILIZED. THE TERM IS THE GREATER FOOL
01:09:46THEORY. IT TAKES SOMEONE WHO IS WILLING TO PAY MORE FOR NOTHING THAN THE
01:09:51ORIGINAL INVESTOR FOR THE PERSON
01:09:54TO MAKE A PROFIT.
01:09:59IT'S SPECULATIVE, BUT IT'S ALSO CALLED SOMETHING ELSE. IT'S CALLED A PONZI SCHEME.
01:10:09THESE THINGS HAVE BEEN LEGALIZED UNDER THIS ADMINISTRATION.
01:10:11PONZI SCHEME'S HALVED COST
01:10:16PERSONS LOTS -- HAVE COST PERSONS LOTS OF MONEY, AND
01:10:20PEOPLE WHO IMPOSE THEM HAVE GONE TO JAIL. THEY'VE BEEN PROSECUTED.
01:10:25BUT IN THE TRUMP WORLD, WE NOW
01:10:27HAVE LEGALIZED THIS SCAM TO THE
01:10:30EXTENT THAT WHEN A PERSON BUYS
01:10:32THE TRUNK COIN, THERE'S A
01:10:36TRANSACTION FEE THAT IS PAID,
01:10:39BUT WHEN IT IS SOLD THERE'S A TRANSACTION FEE.
01:10:43THE PRESIDENT MAKES MONEY ON THE PURCHASE AND ON THE SALE, AND ON
01:10:47THE PERSON THAT HAD THE SALE,
01:10:50TAKING A FEW OF THESE COINS AT THE GENESIS OF THIS PROCESS, HE
01:10:53MAKES A PROFIT WHEN IT GOES UP,
01:10:56AND IF HE TAKES THIS PROFIT OFF
01:10:58THE TOP, AS OTHER INVESTORS DO
01:11:02WITH BUYING EARLY, THEY DO WELL
01:11:06BUT THE MASSES OF PEOPLE, THEY
01:11:09ARE THE PEOPLE LOSING THE $3.81 BILLION.
01:11:13THESE SCHEMES HAVE NOT
01:11:17TRADITIONALLY BEEN LEGAL.
01:11:20HOW DO YOU JUSTIFY LEGALIZING
01:11:24THESE PONZI SCHEMES?
01:11:25SEC. BESSENT: WELL,
01:11:29REPRESENTATIVE, I'M UNFAMILIAR WITH THIS. I DON'T THINK IT MEETS THE
01:11:33CRITERIA FOR A PONZI SCHEME. A PONZI SCHEME IS A DIFFERENT KIND OF FINANCING.
01:11:37REP. GREEN: PARDON ME FOR
01:11:43INTERRUPTING, BUT EXPLAIN TO ME HOW IT DIFFERS FROM A PONZI SCHEME, WHEN THE PROFITS THAT
01:11:45ARE MADE ARE DEPENDENT UPON
01:11:48SOMEONE ELSE PAYING MORE FOR WHAT YOU PURCHASED, WHICH IS
01:11:53NOTHING. WE WILL CALL IT A DIGITAL TOKEN.
01:11:56HOW IS THAT DIFFERENT THAN A
01:12:00PONZI SCHEME?
01:12:01SEC. BESSENT: EVERY MARKET IS
01:12:05DEPENDENT, IF YOU WANT TO MAKE MONEY, ON SOMEONE PAY MORE.
01:12:08WHETHER YOU SELL --
01:12:10REP. GREEN: SIR, IF I MAY, IF IT
01:12:14IS GOLD, YOU HAVE A TANGIBLE ASSET. THERE ARE TANGIBLE ASSETS.
01:12:19THIS IS AN INTANGIBLE ASSET. IT DOESN'T EXIST, EXCEPT IN THE MINDS OF --
01:12:24SEC. BESSENT: EQUITIES AND BONDS
01:12:28ARE AN INTANGIBLE ASSET. REP. GREEN: WELL, THIS IS ONE
01:12:32THAT THE PRESIDENT HAS USED TO TAKE ADVANTAGE OF PEOPLE.
01:12:35I WOULD HOPE THAT OUR COUNTRY WILL SEE THAT THE PRESIDENT IS A
01:12:37CORRUPT PERSON. I YIELD BACK.
01:12:39>> THE CHAIR RECOGNIZES THE
01:12:43CHAIR OF OUR SUBCOMMITTEE ON HOUSING AND INSURANCE, YOUR
01:12:47RECOGNIZE FOR FIVE MINUTES. >> THANK YOU, MR. CHAIRMAN.
01:12:51MR. SECRETARY, WHEN YOU APPEAR BEFORE THE HOUSE WAYS AND MEANS
01:12:54COMMITTEE IN JUNE, THE ISSUE OF
01:12:57THIRD-PARTY LITIGATION FINANCING WAS RACE. YOU SAID AT THE TIME YOU LOOK FORWARD TO WORKING WITH HIM ON
01:13:01THE ISSUE, ESPECIALLY HER FOR MONEY IS COMING INTO OUR SYSTEM MUST SPONSOR LAWSUITS AND PAYING
01:13:04NO TAXES.
01:13:07MORE RECENTLY YOU WARNED WALL
01:13:10STREET ON THAT, QUOTE, TEXTURAL
01:13:11SHOULD REWARD INVESTMENT, NOT
01:13:14ABUSIVE FINANCIAL ENGINEERING, AND SAID TREASURY WOULD NOT
01:13:19TOLERATE FINANCIAL PRODUCTS DESIGNED TO EXPLOIT THE TAX CODE .
01:13:23I THINK THAT SPECIFICALLY DESCRIBES THIRD-PARTY LITIGATION
01:13:26TO A T. THESE TRANSACTIONS ALLOW
01:13:28INVESTORS TO TAKE ORDINARY INCOME FROM LITIGATION
01:13:32RECOVERIES AND CONVERTED INTO CAPITAL GAINS INCOME THROUGH
01:13:36FINANCIAL PHYSICAL ENGINEERING. MR. SECRETARY, WE COMMIT TO
01:13:39HAVING THE TREASURY AND THE IRS EXAMINE THE TAX TREATMENT OF PARTY LITIGATION FINANCING
01:13:45INCLUDING ARRANGEMENTS THAT HAVE FOREIGN INVESTORS?
01:13:48I'M CONCERNED THAT WE'VE GOT SOVEREIGN GROWTH FUNDS THAT ARE GAINING -- GAMING OUR JUSTICE
01:13:53SYSTEM IN GETTING THESE NUCLEAR VERDICTS AND THEN PAYING
01:13:57THEMSELVES BACK BIG TIME.
01:13:57SO MY QUESTION IS, WILL YOU WORK
01:14:02WITH US TO ENSURE THAT TPL
01:14:05PROCEEDS ARE SUBJECT TO THE APPROPRIATE U.S. TAX TREATMENT?
01:14:09SEC. BESSENT: I LOOK FORWARD TO
01:14:13WORKING WITH YOU AND YOUR STAFF ON THAT AND I HAVE LONG BELIEVED
01:14:16THAT THIS IS WITHIN OUR LEGAL
01:14:20AND FINANCIAL SYSTEM. IT SHOULD BE STATED THAT YOU LOOK AT HOME INSURANCE PREMIUMS OF AMERICA, THEY HAVE BEEN
01:14:25SKYROCKETING, ALSO THIRD-PARTY
01:14:28LITIGATION FINANCING IS DRIVING THAT.
01:14:31SECOND QUESTION, MR. SECRETARY, SOME OF MY COLLEAGUES TODAY HAVE
01:14:34CLAIMED THAT CRYPTO WILL DESTABILIZE THE U.S. DOLLAR.
01:14:38I HAVE A HARD TIME UNDERSTANDING HOW A PAYMENT STABLE COIN UNDER
01:14:41THE GENIUS ACT THAT MUST BE
01:14:42BACKED DOLLAR BY DOLLAR IN THE
01:14:46U.S. FINANCIAL INSTITUTION, HOW COULD THAT UNDERMINE THE VERY DOLLAR THAT IT IS TIED TO?
01:14:51I KNOW YOU ARE WORKING HARD TO IMPLEMENT GENIUS.
01:14:54HOW TO EXPECT THE STATUTORY FRAMEWORK FOR STABLE COINS TO
01:14:57STRENGTHEN THE DOLLAR'S POSITION AS THE WORLD RESERVE CURRENCY,
01:15:00WHICH IS WHEN THE REASONS WE ALL
01:15:02VOTED FOR, HOW TO INCREASE THE
01:15:05GLOBAL DEMAND FOR DOLLAR-DENOMINATED ASSETS AND
01:15:07ENSURE THIS EMERGING TECHNOLOGY ULTIMATELY REINFORCES, NOT
01:15:11STRENGTHENS, -- NOT WEAKENS THE STRENGTH OF THE U.S. DOLLAR?
01:15:14SEC. BESSENT: THE HIGHEST DEMAND
01:15:17STABLE COINS ARE INDEED U.S. DOLLAR BACK.
01:15:21WE BELIEVE THAT AS WE FINISH THE RULEMAKING, WHICH WE ARE IN THE
01:15:24MIDST OF NOW, AND WORKING ON CONGRESSIONAL INTENT, AND
01:15:28SPEAKING TO THE STAKEHOLDERS COME THAT WE WILL SEE AN
01:15:31INCREASE IN DEMAND FOR U.S. SAFE
01:15:36HAVEN ASSETS, U.S. DOLLAR ASSETS, ESPECIALLY TREASURY BILLS, AND THAT WILL LIKELY
01:15:41ADDRESS THE U.S. DOLLAR VIS-A-VIS OTHER CURRENCIES,
01:15:46ESPECIALLY AS OTHER COUNTRIES IMPLEMENT CENTRAL-BANK DIGITAL
01:15:50CURRENCIES WHICH COULD BE SEIZED
01:15:52AT ANY MOMENT AS WE HAVE SEEN IN NUMEROUS CASES.
01:15:55>> THANK YOU VERY MUCH FOR THAT.
01:15:58AS YOU KNOW THE BANK SECRECY ACT IS THE TALK REGULATORY CALL
01:16:02CENTER FOR FINANCIAL INSTITUTIONS AND I'M PLEASED
01:16:06THAT THE ADMINISTRATION IS LOOKING AT MODERNIZING A CONTROLS WITH THE NEW PROGRAM
01:16:10RULE. WHEN IT COMES OUT, WILL BE STRONG ENOUGH TO EXCELLENT CHANGE SUPERVISOR PRACTICE ON
01:16:14THE GROUND LEVEL TO FOCUS ON RISK? SEC. BESSENT: YES.
01:16:19WHAT WE ARE SEEING IS THAT MANY
01:16:23OF THE SUSPICIOUS ACTIVITY REPORTS THAT WE SEE OR EVEN EX
01:16:27POST, AND MOST -- MUCH TO MY DISMAY WHEN I ARRIVED AT
01:16:31TREASURE, WE ALSO SAW THAT MANY
01:16:32OF THE SARS WHICH ARE IN THE
01:16:38HUNDREDS OF THOUSANDS TO MILLIONS THAT ARE FILED EVERY YEAR IN A DIGITAL FILING
01:16:42CABINET, WE ARE OPERATIONALIZING
01:16:45FENCE IN SO THAT WE CAN BOTH FOLLOW THE LEADS, FOLLOW
01:16:48PATHWAYS ON THOSE, AND COMMUNICATE WITH LOCAL LAW
01:16:53ENFORCEMENT IN A MORE ROBUST WAY.
01:16:54>> I WANT TO TOUCH ON COMMUNITY
01:16:58BANKS WHICH DON'T HAVE THE RESOURCES OR LARGER COMPLIANCE
01:17:01TEAMS, AND A MONTH CAN MAKE A BIG DIFFERENCE.
01:17:03A THRESHOLD INCREASE WOULD MEANINGFULLY REDUCE THE
01:17:07COMPLIANCE BURDEN FOR THEM. IS THAT SOMETHING WE CAN INCLUDE IN THE FINAL AML RULE?
01:17:10SEC. BESSENT: WE ARE WORKING ON
01:17:14THAT NOW AND WE ARE WORKING ON BOTH PERHAPS A THRESHOLD
01:17:17INCREASE, BASED ON THE LENGTH OF
01:17:22TIME THE CUSTOMER HAS BEEN WITH
01:17:24AN INSTITUTION, AND AS YOU KNOW,
01:17:27NO ONE KNOWS OUR CUSTOMERS BETTER THAN SMALL COMMUNITY BANKS.
01:17:32SO HOW CAN WE INTEGRATE THEIR KNOWLEDGE AND THE FACT THAT THEY DO KNOW THE CUSTOMER, THEY SEE
01:17:37THEM, AS OPPOSED TO, WE FIND
01:17:40THAT MOST OF THE EFFICIENCIES OR
01:17:45WITH A VERY LARGE BANKS. >> THE CHAIR RECOGNIZE THE
01:17:50RANKING NUMBER OF THE SUPPLEMENT HOUSING AND INSURANCE, YOU ARE
01:17:54RECOGNIZED FOR FIVE MINUTES. >> THANK YOU YOU, MR. CHAIRMAN.
01:18:01THANK YOU FOR BEING HERE.
01:18:07THE PRESIDENT VOWED AT THE
01:18:10REPUBLICAN CONVENTION, MIDTERM
01:18:17CONVENTION IN DALLAS, THAT HE
01:18:20WOULD GIVE $5,000 TO EACH
01:18:25AMERICAN IF REPUBLICANS WIN THE
01:18:30ELECTION.
01:18:34HE CALLED IT A TRUMP DIVIDEND.
01:18:41FIRST OF ALL, I'M CONCERNED
01:18:47ABOUT THE DIRECTION WE ARE GOING
01:18:49IN TERMS OF ONE PART OF OUR
01:18:53GOVERNMENT TAKING COMPLETE CONTROL OVER OUR GOVERNMENT, AND
01:18:57WE KNOW THAT THINGS LIKE THIS
01:19:01HAPPEN BEFORE, BUT DO YOU
01:19:06BELIEVE THAT THE PRESIDENT CAN
01:19:12MAKE A DECLARATION ABOUT THIGH
01:19:17THE DOLLARS FOR EACH AMERICAN --
01:19:19$5,000 FOR EACH AMERICAN WITHOUT THE CONSENT OF CONGRESS?
01:19:22SEC. BESSENT: WE ARE CURRENTLY
01:19:26EXAMINING THAT AT TREASURY AND WHEN THE REPUBLICANS WIN IN NOVEMBER, IF WE NEED TO, I LOOK
01:19:30FORWARD TO WORKING WITH SPEAKER JOHNSON ON IT. REP. CLEAVER: ON WHAT?
01:19:34SEC. BESSENT: IF NECESSARY, ON
01:19:38THE $5,000 DIVIDEND. REP. CLEAVER: SO IT IS A THING?
01:19:41SEC. BESSENT: I'M NOT SURE WHAT
01:19:43"A THING" MEANS.
01:19:46REP. CLEAVER: IS A THING WHEN IT
01:19:48IS REAL.
01:19:50THE PRESIDENT'S DECLARATION
01:19:56ABOUT $5,000 PER AMERICAN IS REAL, SO IT HAS BEEN RESEARCHED --
01:19:59SEC. BESSENT: THE PRESIDENT'S INTENT IS VERY REAL.
01:20:03REP. CLEAVER: AS TREASURY
01:20:06SECRETARY, DO YOU HAVE ANY
01:20:09APPREHENSIONS ABOUT A $1.8
01:20:12TRILLION DEFICIT THAT WOULD BE
01:20:18IMPACTED EVEN MORE NEGATIVELY IF
01:20:22EVERY AMERICAN RECEIVES $5,000 FROM THE FEDERAL GOVERNMENT?
01:20:24SEC. BESSENT: FIRST OF ALL, I
01:20:28THINK PUTTING MORE MONEY IN THE AMERICAN PEOPLE'S POCKET SHOULD
01:20:31BE AN OBJECTIVE FOR EVERYONE,
01:20:33AND I BELIEVE THERE ARE WAYS TO
01:20:35DO IT THAT WOULD NOT AFFECT THE
01:20:40DEFICIT. REP. CLEAVER: AND WAYS TO DO IT
01:20:43WITHOUT INVOLVING CONGRESS? SEC. BESSENT: AGAIN, IF CONGRESS
01:20:47IS NEEDED, I LOOK FORWARD TO WORKING WITH SPEAKER JOHNSON. IF NOT, THEN NOT.
01:20:52REP. CLEAVER: SPENDING BEGINS IN
01:20:54THE HOUSE OF REPRESENTATIVES,
01:20:59AND $5,000 PER PERSON WOULD SEEM
01:21:01TO ME WOULD HAVE TO MOVE THROUGH THE LEGISLATIVE BODY.
01:21:05WE ARE SEEING A SLOW AND IN MY
01:21:10ESTIMATION, DANGEROUS REDUCTION
01:21:15IN THE EQUALITY OF THE THREE
01:21:17BRANCHES OF THE GOVERNMENT.
01:21:20AND I ALWAYS THINK ABOUT 1973,
01:21:24THE WAR POWERS ACT, THE BOMBING
01:21:29WAS SECRETLY TAKING PLACE IN CAMBODIA WITHOUT THE KNOWLEDGE OF PEOPLE IN CONGRESS.
01:21:34AND SO I'M NOT SURE -- WELL, I'M
01:21:40ASSUMING YOU'RE MEETING WITH SPEAKER JOHNSON NOW, WORKING OUT SOME DETAILS.
01:21:45SEC. BESSENT: SORRY.
01:21:48REP. CLEAVER: ARE YOU WORKING ON
01:21:53DETAILS WITH SPEAKER JOHNSON ON THE $5,000? SEC. BESSENT: IF IT BECOMES CLEAR THAT WE NEED CONGRESSIONAL
01:21:58AUTHORITY, I WILL MEET WITH SPEAKER JOHNSON. AND I WILL LOOK FORWARD TO IT.
01:22:02REP. CLEAVER: THERE WAS ALSO
01:22:06PLEDGE FOR $2000 BEFORE THIS BY
01:22:10THE PRESIDENT, AND THAT'S CONCERNING.
01:22:15MY TIME IS GONE, BUT I'M VERY
01:22:18CONCERNED ABOUT THIS UNCHECKED
01:22:22SUPER INTELLIGENCE WHEN PEOPLE
01:22:25ARE DECLARING THAT IT IS AN
01:22:28EXISTENTIAL THREAT TO HUMANITY.
01:22:32SENATOR KENNEDY HAS SUGGESTED
01:22:37THAT WE PASSED SOME KIND OF LAW
01:22:39THAT WOULD REQUIRE A KILL SWITCH .
01:22:42>> ARE YOU FAMILIAR WITH THAT? SEC. BESSENT: I'M NOT, SIR.
01:22:46REP. CLEAVER: BASED ON WHAT THE
01:22:49SENATOR HAS SUGGESTED, IT WOULD BE THE SWITCH THAT WOULD BE THE
01:22:52ULTIMATE SWITCH THAT WOULD SHUT
01:22:54DOWN AI IF THIS THREAT HAS
01:23:00SURFACE.
01:23:03>> THE GENTLEMAN'S TIME HAS
01:23:08EXPIRED. THE CHAIR NOW RECOGNIZES THE GENTLEMAN FROM IOWA.
01:23:12MR. ANNAN, YOU ARE RECOGNIZED FOR FIVE MINUTES.
01:23:15>> SEC. BESSENT, THANK YOU FOR
01:23:18SPINNING TIME WITH US HERE TODAY AND MOST IMPORTANTLY, THANK YOU
01:23:22FOR GOING TO PLACES LIKE IOWA AND HEARING FRONTLINE FOLKS SHARE WITH YOU HOW THE
01:23:25INVESTMENT OF RULE CAPITAL,
01:23:30WHICH YOU HAVE DONE, HAS HAVE -- HELPED IMPACT LOCAL LENDERS,
01:23:34WHERE THE BANKS, CREDIT UNIONS, TAKE ROOT AND REALLY GROW.
01:23:38YOU SPENT SOME TIME RECENTLY IN DES MOINES AND YOU HEARD DIRECTLY FROM FOLKS WHO HAVE
01:23:42SAID THE LENDING OPTIONS AVAILABLE TO THEM BECAUSE OF YOUR LEADERSHIP HERE AND THE
01:23:46ROLE BACK IN REGULATION IS HELPING THEM GROW BUSINESSES.
01:23:52WE HAD COMPANIES HAVE THEIR BEST YEAR EVER AS A DIRECT RESULT OF
01:23:55THE TAX CUTS BUT THE ROLLBACK OF
01:23:59REDTAPE. THANKS FOR HIM FROM FOLKS RIGHT
01:24:02IN THE MIDDLE OF AMERICA ON HOW MUCH THIS HELPS GROW THE HEART OF THE HEARTLAND.
01:24:06SEC. BESSENT: IT IS A PLEASURE
01:24:10TO BE THERE AND IT IS REALLY A TALE OF TWO STATES.
01:24:11I HAVE BEEN IN MINNESOTA WHICH
01:24:17IS TOP-FIVE FOR CORPORATE INCOME TAX, AND THE PEOPLE WHO ARE
01:24:21LEAVING, AND THE BUSINESSES AS
01:24:26OPPOSED TO IOWA WHICH IS BOOMING. REP. NUNN: I WANT TO HIGHLIGHT
01:24:29AND THANK MY COLLEAGUE ACROSS
01:24:31THE AISLE FOR EFFORTS WE'VE DONE ON THINGS LIKE RURAL HOUSING.
01:24:35THIS IS AN AREA WE ARE MAKING SURE ALL AMERICA GETS THE OPPORTUNITY HAVE THE AMERICAN DREAM.
01:24:43THE TREASURY HAS BEEN A PART IN MAKING SURE OUR LOCAL LENDERS HAVE THE ACCESS TO CAPITAL
01:24:47NECESSARY TO MAKE THAT SUCCESSFUL. I ALSO WANT TO SPEAK TODAY ON
01:24:51SOMETHING I THINK IS REALLY
01:24:51DRIVEN WHAT WE HAVE DONE HERE ON
01:24:57THE FINANCIAL SERVICES COMMITTEE. WE LET ON CRYPTO AND DIGITAL
01:24:59ASSETS AND NOW WERE LOOKING AT
01:25:02THIS ARTIFICIAL INTELLIGENCE THAT HAS EXPLODED IN THE LAST YEAR ALONE.
01:25:05OUR COMMITTEE HAS PASSED
01:25:08UNANIMOUSLY MY AI PLAN ACT TO BE ABLE TO IDENTIFY WAYS THE FEDERAL GOVERNMENT CAN LEARN
01:25:12FROM WHAT IS HAPPENING BOTH IN THE PRIVATE SECTOR, WHILE AT THE
01:25:15SAME TIME NOT PUTTING
01:25:19PROHIBITIVE RESTRICTIONS ON INNOVATION HERE IN THE UNITED STATES.
01:25:22I ALSO THINK IT IS UNIQUE THE TREASURY HAS AN OPPORTUNITY HERE TO HELP ASSUAGE AND AMERICA
01:25:26FIRST INNOVATION WHILE STEMMING
01:25:29THE TIDE FROM GROUPS LIKE CHINA,
01:25:32NEAR COMPETITOR IN THAT SPACE, FROM GETTING TACTICAL ADVANTAGES
01:25:35IN THE AI SPACE. THAT'S EVERYTHING FOR MAKING SURE THAT CHIPS ARE MADE HERE IN
01:25:38THE UNITED DATE, TO ALSO ENSURING THAT FOREIGN ACTORS
01:25:42DON'T TAKE AN OPPORTUNITY TO
01:25:45LEAPFROG AMERICA'S FRONTIER AI MODELS.
01:25:50SEC. BESSENT, I WONDER IF YOU CAN SPEAK TO US ABOUT WHAT THE
01:25:53TREASURY IS DOING TO HELP KEEP AMERICA'S COMPETITIVE ADVANTAGE,
01:25:57INCREASE OUR INNOVATION, WHILE AT THE SAME TIME, AS WAS NOTED
01:26:01HERE, NOT ALLOWING TECHNOLOGY TO GET AHEAD OF OUR CAPABILITY TO
01:26:04BEST HELP THE AMERICAN PEOPLE. SEC. BESSENT: THANK YOU FOR THAT
01:26:08QUESTION. WE ARE TRYING TO MAINTAIN THE
01:26:10OPTIMAL GROWTH RATE SO WE ARE
01:26:13SOLVING FOR GROWTH FOR BOTH THE
01:26:17ANIMATION AND SAFETY. WE HAVE BEEN WORKING ON THAT FOR
01:26:21MORE THAN SIX MONTHS WITH LARGE
01:26:24LANGUAGE MODEL SINCE THE RELEASE OF MYTHOS WHICH WAS THE FIRST OF
01:26:27WHAT I WOULD SAY IS A STEP UP IN
01:26:31INCREASE IN AGI OR AI AS WE APPROACH AGI.
01:26:36ONE OF THE THINGS I WOULD SAY IS
01:26:40THAT WE NEED TO DEVELOP MORE OF
01:26:42AN OPEN SOURCE OR OPEN SOURCE MODELS IN THE U.S.
01:26:47WE CAN'T LET THESE LABS HAVE
01:26:52REGULATORY CAPTURE BECAUSE THAT WILL STOP INNOVATION.
01:26:54ONE OF THE WAYS WE CAN PUSH BACK AGAINST CHINA, BECAUSE THE
01:26:58CHINESE MODELS HAVE BEEN
01:26:58DISTILLED FROM THE U.S. MODELS,
01:27:03WHICH IS A SCIENTIFIC WORD FOR STEEL.
01:27:06THE MORE WE DEVELOP OUR OWN OPEN SOURCE MODELS HERE, OR OPEN
01:27:09MODELS HERE, THEN WE WILL BE
01:27:12ABLE TO EVENTUALLY, THE CHINESE
01:27:16MODELS, PEOPLE WILL NOT USE THEM, BECAUSE, AGAIN, YOU ARE
01:27:20SEEING MANY OF THE CHINESE
01:27:22MODELS, MANY OF THE CHINESE MODELS THINK THEY ARE MYTHOS.
01:27:27REP. NUNN: I THINK YOU'RE
01:27:31ABSOLUTELY RIGHT IN THAT MAIDEN AMERICA'S GOOD FOR THE ENTIRE WORLD AND ONE OF THE SAFEGUARDS
01:27:36WE HAVE TO MAKE SURE THE COMMONEST PARTY IN CHINA DOES
01:27:37NOT BECOME A MAINSTAY FOR THE FUTURE OF ARTIFICIAL INTELLIGENCE.
01:27:41I WILL END WITH THIS, MR. CHAIR, ONE OF THE EFFORTS ARE TRYING TO LEAD HERE IS NOT ONLY MAKING
01:27:45SURE -- OUR PARTNERS KNOW WE ARE
01:27:50COMMITTED TO THIS. AND THAT WE WON'T BE SOFT ON
01:27:53THIS ISSUE. BUT ALSO, CONGRESS MUST LEAD.
01:27:56THIS IS ONE OF THE REASONS WE ARE PRESENTING A LETTER TO BOTH
01:27:59THE HOUSE REPUBLICAN AND DEMOCRAT LEADERSHIP AS WELL AS
01:28:02THE SENATE TO MAKE SURE THAT WE HAVE A COMMISSION FOCUSED
01:28:06SPECIFICALLY ON ASPECTS CAN DO TO MAKE SURE ARTIFICIAL
01:28:09INTELLIGENCE BECOMES FIRST AND FOREMOST HERE IN THE UNITED STATES AND NATIONAL SECURITY IS
01:28:13PRIORITIZED. I LIKE TO ENTER THAT INTO THE RECORD.
01:28:17>> WITHOUT OBJECTION.
01:28:20THE CHAIR RECOGNIZES MR. HIMES
01:28:24FROM CONNECTICUT. YOUR RECOGNIZE FOR FIVE MINUTES.
01:28:25>> THANK YOU VERY MUCH MR.
01:28:29SECRETARY FOR BEING HERE. THE CHAIRMAN NINE WERE JUST IN
01:28:33BOLIVIA, BOLIVIA IS HANGING ON
01:28:35BY THREAD, WAITING FOR THEM TO APPROVE AN IMF DEAL.
01:28:39I JUST HOLD THAT UP AS AN EXAMPLE OF HOW IMPORTANT IT IS
01:28:42THAT YOU PROVIDE THE LEADERSHIP THAT KEEPS OUR NEIGHBORS STABLE AND SAFE.
01:28:45THAT'S NOT WHAT I WANT TO TALK ABOUT, THOUGH.
01:28:47DID YOU ATTEND THE MIDTERM
01:28:51CONVENTION IN TEXAS LAST WEEKEND? SEC. BESSENT: I DID.
01:28:54>> I SAW TWO THINGS THAT THAT CONVENTION.
01:28:58NUMBER ONE, A LITTLE BIT LIKE YOU QUOTING THE ATLANTA FEDERAL
01:29:03RESERVE AS A GDP PROJECTION FOR THE THIRD QUARTER.
01:29:06THE ATLANTIC FEDERAL RESERVE HAS A GDP PROTECTION PROJECTION THAT
01:29:09IS DOUBLE WHAT THE SURVEY OF
01:29:13PROFESSIONAL FORECASTERS IS SAYING IT WILL BE AT 2.5%.
01:29:15SO I SAW A LOT OF HAPPY TALK
01:29:18ABOUT THE ECONOMY, WHICH IS POLITICAL MALPRACTICE.
01:29:24CONSUMER SENTIMENT HAS LOST 20 POINT SINCE THE BEGINNING OF THE
01:29:27TRUMP ADMINISTRATION P YOU HAVE A POLITICAL PROBLEM. I DON'T INSPECT YOU TO COMMENT
01:29:31ON THAT, BUT YOU HAVE A POLITICAL PROBLEM.
01:29:34SEC. BESSENT: CONGRESSMAN,
01:29:38THERE'S A SURVEY PROBLEM BECAUSE DEMOCRATS ARE NOW BLAMING THE SURVEY.
01:29:41>> MR. SECRETARY, YOU ARE BETTER
01:29:46THAN THAT. RECLAIMING MY TIME.
01:29:47IT DISAPPOINTS ME TO HEAR
01:29:52SOMEONE OF YOUR STATURE USE THE WORD CONSPIRACY IN THE CONGRESS OF THE UNITED STATES.
01:29:55THE OTHER THING THAT I HEARD IN TEXAS IS THAT WE ARE ALL COMMUNISTS.
01:29:59THAT WAS INTERESTING TO ME. I WOULD BE THE FIRST COMMONEST
01:30:02IN HISTORY TO HAVE SPENT A DOZEN YEARS IN THE BANKING BUSINESS.
01:30:05MY FOSTER -- MR. FOSTER THE
01:30:08BUSINESS HERE. I DO WORRY ABOUT THE OTHER
01:30:12PARTY. THERE'S BEEN 10,000 IVY LEAGUE
01:30:16PHD'S WRITTEN ON WHAT PRECISELY COMMUNISM IS.
01:30:19BUT YES OR NO, CAN WE AGREE THAT COMMUNISM SUBSTITUTES THE
01:30:23CONTROL OF THE GOVERNMENT AND
01:30:25THE OWNERSHIP OF THE GOVERNMENT OVER THE HAND OF THE FREE MARKET?
01:30:30ISN'T THAT A REASONABLE WORKING DEFINITION OF COMMUNISM? SEC. BESSENT: YES.
01:30:34>> OK, GOOD.
01:30:37CAN YOU THINK OF ANY OTHER ADMINISTRATION SINCE ROOSEVELT
01:30:41THAT HAS TAKEN EQUITY STAKES, GOVERNMENT OWNERSHIP AND 39 COUNTRIES?
01:30:46ANOTHER ADMINISTRATION THAT HAS THE U.S. GOVERNMENT OWNING 39
01:30:50AMERICAN COMPANIES? SEC. BESSENT: CONGRESSMAN, SAID
01:30:54-- AS YOU SAID, SINCE FRANKLIN
01:30:58ROOSEVELT, WE ARE IN THE FIGHT OF OUR LIVES.
01:31:00FOR STRATEGIC INDUSTRIES, WE'VE
01:31:04HAD MARKET FAILURES. THE BIDEN ADMINISTRATION COMPLETELY --
01:31:08>> MR. CHAIRMAN, I HAVE FIVE MINUTES HERE.
01:31:11I'M NOT GOING TO ARGUE WITH YOU OR WHETHER IT'S A GOOD IDEA.
01:31:15I THINK IT'S A TERRIBLE IDEA.
01:31:16SEC. BESSENT: THAT'S WHAT WE HAVE NO CRITICAL MINERALS.
01:31:20>> MR. SECRETARY, I DO HAVE A
01:31:24QUESTION AT THE END OF THIS. THE GOVERNMENT NOW OWNS 30 ON
01:31:28COMPANIES. I DON'T LIKE TARIFFS, WHETHER YOU THINK THEY ARE A GOOD OR BAD
01:31:33IDEA, THEY ARE INTERVENTION IN THE FREE MARKET. YOU YOURSELF THAT A MASSIVE
01:31:37INTERVENTION AND PROBABLY THE MOST HIM -- IMPORTANT MARKET
01:31:40WHICH IS THE TREASURY MARKET. THE PRESIDENT RECENTLY, $5,000 FOR A VOTE.
01:31:44IN THE LEGAL WORLD, THAT WOULD BE CALLED A BRIBE.
01:31:48BUT YOU COULD THINK OF IT AS AN INTERVENTION IN POLITICAL ROCKETS.
01:31:51I HAVE NO DOUBT IF I WALKED DOWN THERE RIGHT NOW AND SAY I WILL
01:31:54PAY YOU $5,000 IF YOU FOCUS YOUR LINE ON THE THREE YEAR TREASURY,
01:31:59THAT CONVERSATION WOULD END WITH ME IN HANDCUFFS. BUT THE QUESTION I HAVE FOR YOU
01:32:02RELATES TO YOUR INTERVENTION IN
01:32:06THE MARKETS. I'M NOT GOING TO ASK YOU TO AGREE WITH ME HERE, BUT I CAN
01:32:09THEY COME NO ADMINISTRATION IN
01:32:11THE LAST 50 YEARS THAT IS QUITE
01:32:14AS COMMONEST AS THE TRUMP ADMINISTRATION. CONSTANT INTERVENTIONS IN THE
01:32:18OPERATIONS OF THE FREE MARKET.
01:32:20LET'S SPEND ONE MINUTE ON YOUR INTERVENTION. ABOUT A WEEK AND HALF AGO YOU
01:32:24SPENT SOME $10 BILLION, PLUS OR MINUS METOO TRY TO LOWER THE YIELD ON THE TENURE BOND.
01:32:32THIS PRICE IS AMERICAN MORTGAGES.
01:32:33WE STARTED, IT WAS IT 10.8%.
01:32:36TO DATE SET AT 20 YEAR HIGH, A
01:32:3820 EIGHT IS POINT RISE. MERCER INTERVENTION SUCCESSFUL?
01:32:44AND WILL THERE BE MORE?
01:32:48THE TENURE WENT UP BY 20 BASIS
01:32:52POINTS HOW CAN YOU STATE WAS SUCCESSFUL? SEC. BESSENT: THERE'S A
01:32:55COUNTERFACTUAL OF WHAT WOULD IT HAVE DONE?
01:32:58WITHIN PROCEEDED TO HAVE THE TWO MOST SUCCESSFUL TREASURY
01:33:02AUCTIONS WE'VE HAD IN 20 YEARS, AND THE U.S. BOND MARKET
01:33:05CONTINUES DURING THE PAST MONTH, SINCE PRESIDENT TRUMP HAS COME IN, IT HAS BEEN THE BEST
01:33:09PERFORMING BOND MARKET IN THE DEVELOPED WORLD.
01:33:11>> I HAVE ONE LAST QUESTION.
01:33:14DID USE OUR CASH FOR THAT, YOU
01:33:18LET SHORT-TERM BONDS ESSENTIALLY PAY FOR THE PURCHASE OF LONG-TERM BONDS. BUT YOU'VE TALKED ABOUT MAYBE
01:33:22USING THE TREASURY GENERAL FUND.
01:33:27DO YOU INTEND TO CONTINUE USING THE TREASURY GENERAL FUND FOR THIS OPERATION?
01:33:30SEC. BESSENT: I DON'T THINK YOU
01:33:33UNDERSTAND WHAT THE TREASURY GENERAL FUND IS. IT'S A CHECKING ACCOUNT FOR THE
01:33:36FEDERAL GOVERNMENT, AND IF WE CAN BUY BONDS CHEAPLY, WHICH IS
01:33:40WHAT WE DO, APPROXIMATELY 10
01:33:46BILLION -- >> IT'S A GUESS OR NO QUESTION.
01:33:52-- A YES OR NO QUESTION.
01:33:53>> YOUR TIME HAS EXPIRE --
01:33:58HASN'T BARRED. >> I LIKE THE SECRETARY TO PUT
01:34:00THAT IN WRITING, THANK YOU.
01:34:09THE GENTLEMAN -- A GENTLEMEN --
01:34:10FROM MONTANA, MR. DOWNING, YOU ARE RECOGNIZED.
01:34:14REP. DOWNING: THANK YOU.
01:34:18I WANT TO FIRST START BY
01:34:22APPLAUDING YOUR EFFORTS AND THE TRUMP ADMINISTRATION'S EFFORTS TO REDUCE RED TAPE AND ENSURE
01:34:25THAT APPROPRIATION EFFORTS ARE APPROPRIATELY TAILORED.
01:34:29I ALSO APPLIED EFFORTS TO STAND UP TRUMP ACCOUNTS, WHICH REALLY
01:34:33DO HAVE THE POTENTIAL TO GIVE
01:34:34KIDS A FINANCIAL LEG UP, BUT
01:34:39STRAIGHT INTO MY QUESTIONS, AS A FORMER STATE INSURANCE COMMISSIONER, ONE OF MY BIGGEST
01:34:43PRIORITIES IS RETAINING STRONG
01:34:46AND COMPETITIVE STATE-BASED INSURANCE MARKETS, WHICH IN MY OPINION IS THE BEST WAY TO SERVE
01:34:51AMERICANS. DURING THE BIDEN ADMINISTRATION, I SAW FIRSTHAND HOW THE FEDERAL
01:34:54INSURANCE OFFICE WAS EMPOWERED
01:34:56AND POLITICIZED TO ENCROACH ON THAT SYSTEM, DESPITE A KEY
01:35:01FUNCTION BEING TO REPRESENT THE
01:35:05U.S. INSURANCE INDUSTRY ON THE INTERNATIONAL STAGE ON
01:35:09CREDENTIAL MATTERS.
01:35:09I SAW ALL KINDS OF DEVIATIONS
01:35:14FROM THAT, INCLUDING TRYING TO GET THE U.S. TO ADOPT EUROPEAN
01:35:17CAPITAL STANDARDS RATHER THAN ADOPTING THE OTHER WAY ON THE
01:35:22STRONGEST MOST EFFECTIVE INSURANCE MARKET ON THE PLANET, ACTING AS A REGULATOR WHEN YOU
01:35:25CLEARLY WERE NOT A REGULATOR, AND PROBABLY ONE OF THE BIGGEST
01:35:28TRANSGRESSIONS I SAW WAS THE
01:35:31PREVIOUS ADMINISTRATION'S GREEN
01:35:33NEW DEAL ASPIRATIONS BASICALLY
01:35:36MAKING DATA CALLS ON OUR
01:35:38DOMESTIC INSURERS, SERVING THE
01:35:41AUTHORITY OF DOMESTIC REGULATORS. CAN YOU DISCUSS THE EFFORTS TREASURY HAS MADE UNDER YOUR
01:35:45LEADERSHIP TO REIGN IN THOSE
01:35:46ABUSES WE SAW DURING THE
01:35:50PREVIOUS ADMINISTRATION, AND WHAT FURTHER REFORMS MIGHT YOU SUPPORT?
01:35:55SECRETARY BESSENT: THAT'S AN
01:36:00IMPORTANT DISTINCTION. FAO WAS CREATED UNDER DODD-FRANK, BUT IT IS NOT A
01:36:04REGULATOR. IT IS A CONVENE HER.
01:36:08WE FACILITATE COMMUNICATION, AND WE DO NOT EXERCISE AUTHORITIES.
01:36:17I BELIEVE THAT THE INSURANCE MECHANISM WE HAVE IN THE U.S. IS
01:36:20EXTREMELY ROBUST, AND I HAVE THE
01:36:27REGULATORS, INSURANCE COMMISSIONERS, COME TO TREASURY IN THE SPRING FOR SOME DETAILED
01:36:31DISCUSSIONS ON WHAT IS HAPPENING IN PRIVATE CREDIT.
01:36:34I WAS VERY IMPRESSED WITH THE DEPTH AND BREADTH OF THEIR WORK.
01:36:41IMPORTANTLY, TO DO BUSINESS IN
01:36:51MONTANA VIA NEW YORK, MONTANA HAS TO CERTIFY A NEW COMPANY SELLING THEIR, SO IT IS A VERY
01:36:54ROBUST SYSTEM.
01:36:57I THINK WHAT WE CAN DO, WHICH IS
01:37:01WHAT WE DO, IDENTIFY THE POTENTIAL AREAS THAT WE ARE
01:37:05CONCERNED ABOUT FOR FINANCIAL
01:37:10STABILITY, AND THEN MAKE SURE
01:37:16THAT THE INSURANCE REGULATORS ARE AWARE OF THEM. AS I HAVE OFTEN SAID IN RISK
01:37:19MANAGEMENT, THE BIGGEST RISK YOU ARE TAKING IS ONE YOU DON'T KNOW YOU HAVE.
01:37:31>> RIGHT. I AM A CHAMPION OF EFFORTS TO
01:37:34REFORM AND ABOLISH FIDO -- FIO.
01:37:44DO YOU BELIEVE THAT TREASURY
01:37:49SHOULD MINIMIZE ITS INSURANCE ACTIVITIES TO CLEARLY DEFINE
01:37:52FEDERAL RESPONSIBILITIES AND LEAVE INSURANCE REGULATION TO
01:37:56THE STATES? SEC. BESSENT: 100%.
01:38:01REP. DOWNING: SO MY LEGISLATION STRIKES A BALANCE ON ABOLISHING
01:38:03FIDO -- FIO WHILE MAINTAINING
01:38:09SOME KEY RESPONSIBILITIES SO I HOPE YOU'LL TAKE A LOOK AT THAT.
01:38:12I WAS PLEASED TO SEE THE FINAL RULE TO PERMANENTLY REMOVE THE
01:38:15INVASIVE BENEFICIAL OWNERSHIP
01:38:20INFORMATIONAL REQUIREMENTS FOR U.S. SMALL BUSINESSES. I HAVE HEARD FROM COUNTLESS
01:38:23COMPANIES AS TO HOW COSTLY AND UNWORKABLE THIS REQUIREMENT WOULD HAVE BEEN.
01:38:27CAN YOU BRIEFLY DISCUSS WHY EXEMPTING U.S. BUSINESSES FROM
01:38:31THIS REQUIREMENT WAS SO CRITICAL TO THE ADMINISTRATION'S
01:38:34COMMITMENT TO CUT RED TAPE?
01:38:35SEC. BESSENT: FIRST OF ALL, IT
01:38:44IS IMPORTANT TO NOTE WHO WE DID NOT EXEMPT, AND IT IS FOREIGN ENTITIES.
01:38:48BY EXEMPTING 33 MILLION SMALL BUSINESSES FROM THESE ONEROUS AND EXPENSIVE REPORTING REQUIREMENTS, I BELIEVE IT IS A VICTORY FOR COMMON SENSE.
01:38:53REP. DOWNING: RIGHT, ANOTHER
01:38:56BIRD AND HEAR IS HOW COSTLY IT IS TO APPLY WITH THE BANK
01:39:01SECRECY ACT AND ANTI-MONEY
01:39:02LAUNDERING LAWS, THE $10,000 CURRENCY TRANSACTION REPORT
01:39:07THRESHOLD HAS NEVER BEEN RAISED TO ACCOUNT FOR INFLATION SINCE
01:39:10THE SECRECY ACT BECAME LAW IN 1970. YOU DISCUSSED THE ISSUE WITH
01:39:14CHAIRMAN HILLER EARLIER, BUT CAN YOU DESCRIBE WHY IT IS IMPORTANT TO KEEP THE THRESHOLDS UPDATED?
01:39:23CHAIR: I INVITE YOU TO DESCRIBE
01:39:24THEM IN WRITING TO THE GENTLEMAN FROM MONTANA.
01:39:31>> THANK YOU VERY MUCH, MR. CHAIR, AND RANKING MEMBER.
01:39:34MR. SECRETARY, THANK YOU FOR BEING HERE.
01:39:36I KNOW YOU HAVE A TOUGH JOB, AND I APPRECIATE YOU TAKING IT.
01:39:40I HAVE BEEN HERE SINCE THE
01:39:41BEGINNING OF THE HEARING, SO I
01:39:45HAVE HEARD MOST OF YOUR TESTIMONY, AND SOME OF THE THINGS I WAS GOING TO ASK YOU
01:39:48HAVE ALREADY BEEN ASKED, BUT ONE OF THE THINGS I DID HEAR, THAT
01:39:52YOU DID ATTEND THE MIDTERM
01:39:56REPUBLICAN CONVENTION IN DALLAS, AND YOU DID HERE AND COMMENTED
01:40:00ABOUT THE $5,000 -- IN FACT, THE ACTUAL QUOTE FROM THE PRESIDENT
01:40:04WAS THIS -- "IF REPUBLICANS WIN,
01:40:08YOU WIN WITH US, AND YOU GET
01:40:12$5,000." IS THAT A GOOD IDEA?
01:40:15SEC. BESSENT: YES.
01:40:19>> WHY?
01:40:20SEC. BESSENT: I THINK IT IS A
01:40:24GOOD IDEA FOR THE AMERICAN PEOPLE TO KEEP MORE OF THEIR MONEY.
01:40:27>> DOES THAT HURT THE DEFICIT OR THE DEBT? DOES THAT INCREASE THE DEFICIT
01:40:32OR THE DEBT? SEC. BESSENT: I BELIEVE THERE
01:40:34ARE WAYS TO DO IT WITHOUT
01:40:37INCREASING THE DEBT OR DEFICIT. REP. VARGAS: WHY DON'T YOU GO
01:40:41AHEAD AND TELL US THEN? SEC. BESSENT: THAT IS IN PROCESS.
01:40:46REP. VARGAS: SO IT WILL SOMEHOW MYSTERIOUSLY OR MAGICALLY OCCUR?
01:40:49SEC. BESSENT: I'M NOT READY TO
01:40:53DISCUSS IT AT PRESENT, BUT WE HAVE BEEN WORKING ON IT QUITE A WHILE AT TREASURY.
01:41:03REP. VARGAS: WE HAVE BEEN HEARING IT FOR QUITE SOME TIME.
01:41:06I REMEMBER WHEN PRESIDENT TRUMP
01:41:09TALKED ABOUT HOW OUTRAGEOUS THE DEBT WAS.
01:41:12NOW IT IS AT $40 TRILLION. SINCE WE ARE TALKING ABOUT
01:41:15MIRACULOUS, I STUDIED TO BE A
01:41:17CATHOLIC PRIEST FOR A LONG TIME,
01:41:19AND I HAD TO STUDY METAPHYSICS, DOMESTIC PHILOSOPHY IN
01:41:23PARTICULAR, BECAUSE YOU HAVE TO PASS AN EXAM.
01:41:29ABOUT ONTOLOGY, EPISTEMOLOGY,
01:41:31THE NOTION OF WHAT IS EXISTENCE, WHAT IS BEING, HOW DO YOU KNOW
01:41:35THESE THINGS. I NEVER THOUGHT I WOULD HAVE TO RESEARCH THEM ONCE AGAIN, BUT
01:41:39BECAUSE OF AI, I FIND MYSELF
01:41:42GOING BACK TO THIS INFORMATION,
01:41:45TRYING TO FIND OUT WHAT EXISTS, WHAT DOES NOT EXIST.
01:41:48THIS IS A DANGEROUS THING.
01:41:51I'M NOT A TECHIE, BUT I KNOW
01:41:56PHILOSOPHY. AS THE SYSTEMS LEARN MORE ABOUT
01:41:58US, THEY DO BECOME VERY
01:42:02DANGEROUS, AND YOU ARE IN A POSITION TO DO SOMETHING IMPORTANT.
01:42:03THE PEOPLE WHO ARE TECHNICALLY
01:42:06SAVVY MORE AND MORE ARE SAYING THESE ARE VERY DANGEROUS THINGS,
01:42:09AND YET, YOU WERE TALKING A LITTLE BIT ABOUT HOW WE HAVE TO
01:42:12DO THIS FOR, REALLY, EFFICIENCY
01:42:16PURPOSES. WHAT ARE YOU DOING FOR SAFETY?
01:42:19SEC. BESSENT: WE HAVE BEEN
01:42:23WORKING ON SAFETY NONSTOP SINCE THE RELEASE OF MYTHOS.
01:42:26I CAN TELL YOU WHAT WE SHOULD
01:42:28NOT DO ON SAFETY IS TO GET THESE
01:42:32LABS A LIABILITY EXEMPTION, WHICH IS WHAT THEY ARE ASKING FOR.
01:42:36THE BEST WAY TO GUARANTEE SAFETY
01:42:37IS THAT THE CREATORS ARE LIABLE
01:42:40FOR WHAT THEY CREATE AND
01:42:44GENERATE AND PUT OUT INTO THE ECONOMY AND TO THE AMERICAN
01:42:48PEOPLE AND TO THE WORLD POPULACE.
01:42:51REP. VARGAS: WOULD YOU LIKE TO EXPAND MORE ON THAT?
01:42:57IF THE SAFETY ISSUE IS JUST THE
01:43:00LIABILITY FOR YOU, AS YOU KNOW,
01:43:04OFTENTIMES COMPANIES GO AHEAD AND TAKE THE RISK BECAUSE OF THE
01:43:05POTENTIAL PROFIT.
01:43:08ARE YOU BUILDING IN ANY OTHER TYPE OF SAFETY OTHER THAN THE
01:43:11RISK, THE LIABILITY?
01:43:16SEC. BESSENT: AGAIN, ONE THING
01:43:20WE SHOULD NOT DO IS GIVE THEM A BLANK CHECK ON LIABILITY.
01:43:24I BELIEVE THE BEST SAFETY GUARD IS THAT THEY WILL BE HELD
01:43:27RESPONSIBLE, AND THEY ARE SAYING
01:43:29THAT WE WOULD LIKE TO ALL SLOW
01:43:33DOWN, BUT PLEASE GIVE US A WAIVER ON LIABILITY, WHICH
01:43:36SHOULD NOT BE DONE, AND I WOULD ENCOURAGE EVERYONE IN THIS
01:43:40COMMITTEE AND IN BOTH HOUSES NOT TO CONSIDER THAT.
01:43:43REP. VARGAS: I THINK THAT'S A
01:43:45VERY GOOD IDEA, AND I AGREE. WHAT ABOUT THE SAFETY OF BEING
01:43:49ABLE TO ATTEND THE SYSTEM OFF?
01:43:50SEC. BESSENT: WE HAVE BEEN WORKING WITH THIS ADMINISTRATION
01:43:54ON THAT.
01:43:56YOU MIGHT RECALL THAT WE FORCED ANTHROPIC TO WITHDRAW AND MODEL
01:43:59BECAUSE WE DID NOT BELIEVE THAT
01:44:01IT PASSED THE SAFETY CRITERIA.
01:44:08WE WERE HELD UP AS DOING
01:44:12SOMETHING THAT WAS TERRIBLE --
01:44:14REP. VARGAS: I HAVE 17 SECONDS LEFT.
01:44:17I WOULD URGE YOU TO FOCUS MORE ON THE SAFETY.
01:44:20I THINK YOU ARE A VERY CAPABLE PERSON.
01:44:23I DON'T AGREE WITH YOU ON EVERYTHING, BUT I THINK YOU ARE A CAPABLE PERSON.
01:44:26I HOPE YOU FOCUS ON THE SAFETY BECAUSE I THINK THERE IS A LOT
01:44:30OF DANGER. THANK YOU FOR BEING HERE. >> THE CHAIR RECOGNIZES THE
01:44:34GENTLEMAN FROM FLORIDA.
01:44:38>> THANK YOU. WE APPRECIATE YOUR CANDOR.
01:44:41I HAVE NEVER STUDIED TO BE A PRIEST, BUT I AM A FORMER HISTORY PROFESSOR, AND I HAVE
01:44:45LEARNED THAT SOCIALISM DOESN'T
01:44:47WORK, AND I THINK WE HAVE ALL RECOGNIZED AND ARE SEEING IT
01:44:51WITH EUROPE RIGHT NOW AND THEIR DECLINING ECONOMIES, AND THE
01:44:54LAST THING I WANT IS TO GO IN THAT DIRECTION. I HAVE ALSO SEEN WHAT HAS
01:44:58HAPPENED IN PLACES LIKE LATIN AMERICA THAT ARE OPENING UP THE
01:45:01MARKETS AS WE HAVE SEEN SUCCESS IN ARGENTINA. I WANT TO ASK A COUPLE OF
01:45:05QUESTIONS ABOUT ARGENTINA AND JAPAN.
01:45:08I'M CONCERNED WITH SOME OF THE REACTION TO SOME OF YOUR POLICY.
01:45:12IT'S CORRECT THAT JAPAN IS OUR LARGEST HOLDER OF U.S. TREASURIES, IS THAT CORRECT?
01:45:16SEC. BESSENT: IT IS.
01:45:19REP. HARIDOPOLOS: THE REASON I'M
01:45:25RINGING THIS QUESTION UP -- I KNOW THERE IS A LITTLE BIT OF A
01:45:30PUBLIC CONVERSATION BETWEEN THE SENATOR FROM MASSACHUSETTS AND
01:45:32YOURSELF, AND MAYBE FOR NOT ONLY DEDICATION TO THIS COMMITTEE BUT
01:45:36ALSO THE PUBLIC TO UNDERSTAND WHAT WE DID IN ARGENTINA TO HELP
01:45:39A FELLOW ALLY AND WHAT WE DID THERE, WHICH ACTUALLY HELPED THE
01:45:43WORLD ECONOMY AS OPPOSED TO HINDER IT.
01:45:45SEC. BESSENT: IN ARGENTINA, WE
01:45:50HAD A FULLY COLLATERALIZED SWAP
01:45:53LINE ON WHICH THEY GREW A SMALL AMOUNT.
01:45:56THE GOAL WAS TO PROTECT THE CAPITAL OF THE AMERICAN PEOPLE.
01:45:59WE ACTUALLY MADE TENS OF MILLIONS OF DOLLARS AND
01:46:02SUCCESSFULLY BRIDGED AN AMERICAN ALLY -- AS EVERYONE SAID, A
01:46:05TRUMP ALLY. NO, THIS IS AN AMERICAN ALLY.
01:46:10JAVIER MILLET HAS TAKEN
01:46:15ARGENTINA OUT OF THIS FAR LEFT
01:46:17ANTI-AMERICAN GOVERNMENT, AND IT
01:46:21HAS BEEN A BEACON FOR LATIN AMERICA. WHEN THE CONGRESSMAN FROM
01:46:25CONNECTICUT TALKED ABOUT BEING
01:46:25IN BOLIVIA, WE WERE SEEING WITH
01:46:30ARGENTINA, WITH BOLIVIA, WITH CHILE, WITH COLUMBIA, WITH
01:46:35ECUADOR, ALL THESE COUNTRIES
01:46:38HAVING REALIZED THAT THESE FAR LEFT POLICIES HAD NEVER WORKED
01:46:42ANYWHERE AND DID NOT WORK FOR THEM NOW WANT READERSHIP IN A MARKET-BASED ECONOMY.
01:46:47REP. HARIDOPOLOS: WE HAD A
01:46:51SITUATION WITH JAPAN, AGAIN, OUR NUMBER ONE BONDHOLDER, IT HAS TO
01:46:55BE A PERSON WHO IS AN EXPERT ON
01:46:58THE ECONOMY TO HEAR THE CHATTERING CLASS TALK ABOUT SOME OF THE DECISIONS THEY MADE AND
01:47:02NOT UNDERSTANDING A FUNDAMENTAL UNDERSTANDING IF IT BE CREDIT
01:47:06SWAPS OR OTHERWISE.
01:47:07SEC. BESSENT: AND SOME IN THE
01:47:10SENATE. REP. HARIDOPOLOS: WHAT IS THE
01:47:13BENEFIT OF HELPING AN ALLY LIKE JAPAN WHEN THEY RUN INTO A
01:47:16SITUATION LIKE THEY DID RECENTLY ?
01:47:19SEC. BESSENT: WE HAD BEEN ENGAGED WITH THE JAPANESE ON
01:47:23THEIR CURRENCY INTERVENTION IN CONSTANT DIALOGUE.
01:47:27THE MINISTER OF FINANCE IS VERY
01:47:37TRANSPARENT WITH US, AND FOR A NOMINAL AMOUNT -- AGAIN, NOT THE GOAL, BUT A NOMINAL AMOUNT WITH THE U.S. TREASURY HAS MADE TENS
01:47:40OF MILLIONS OF DOLLARS, WE WERE ABLE TO SIGNAL OUR SUPPORT FOR THE JAPANESE POLICY OF A
01:47:45STRONGER YEN, AND A STRONGER YEN
01:47:50IS BETTER FOR AMERICAN EXPORTS. IT MEANS THE JAPANESE GOVERNMENT
01:47:54WILL NOT HAVE TO SELL U.S. ASSETS TO FINANCE FOREIGN
01:47:55CURRENCY INTERVENTION.
01:47:58REP. HARIDOPOLOS: I KNOW THERE
01:48:01HAVE BEEN A LOT OF UNIQUE STATEMENTS MADE FROM THE OTHER SIDE OF THE AISLE.
01:48:04YOU HAVE A LITTLE BIT OF TIME LEFT. DO YOU WANT TO ADDRESS A COUPLE
01:48:08OF THE COMMENTS? I KNOW YOU GOT CUT OFF IN A FEW DIFFERENT CIRCUMSTANCES.
01:48:12SEC. BESSENT: WHAT I WOULD LIKE
01:48:16TO DO IS THIS WAS JUST RELEASED DURING THE HEARING, SEVERAL
01:48:19INCONVENIENT FACTS. THE CENSUS BUREAU COVERING 2025,
01:48:22THEY HAD JUST COVERED -- JUST PUBLISHED THE POVERTY RATE
01:48:28DECLINED. REAL MEDIAN HOUSEHOLD INCOME
01:48:32INCREASED BY 2.6%, THE HIGHEST
01:48:36ON RECORD. PRETAX INCOME FOR BLACK
01:48:39AMERICANS IS UP 4.8%. WHITE AMERICANS, 2.9%.
01:48:44REP. HARIDOPOLOS: ONE LESS
01:48:48THING, IF I CAN.
01:48:49I TALK ABOUT OPPORTUNITY ZONES IN FLORIDA.
01:48:53I WOULD REQUEST THE TREASURY DEPARTMENT LOOK AT SOME OF THOSE IDEAS IN THE FUTURE.
01:48:57WE ARE BLOOMING BECAUSE OF THE SPACE INDUSTRY IN FLORIDA AND
01:49:01LOOKING FOR NEW WAYS TO FIND THAT INVESTMENT SO WE STAY IN SPACE.
01:49:04WITH THAT, THANK YOU FOR YOUR TIME. I YIELD BACK.
01:49:08>> THE CHAIR RECOGNIZES THE GENTLEMAN FROM ILLINOIS FOR FIVE MINUTES.
01:49:12>> WHAT IS THE TOTAL AMOUNT OF MONEY ASSOCIATED WITH THE SALE
01:49:16OF THE VENEZUELAN ASSETS THAT HAS FLOWED THROUGH ACCOUNTS
01:49:20MANAGED BY TREASURY SINCE JANUARY?
01:49:21SEC. BESSENT: JUST A MINUTE.
01:49:37WE ARE NOT GIVING THE TOTAL AMOUNT OF DISBURSEMENTS --
01:49:44>> PRESIDENT TRUMP SAID IN JULY
01:49:45THAT IT WAS MORE THAN $13 MILLION.
01:49:49WOULD YOU AGREE? SEC. BESSENT: AGAIN, I'M NOT GOING TO GIVE OUT THAT AMOUNT.
01:49:53REP. CASTEN: HAS TREASURY HIRED
01:49:57AN AUDITOR? SEC. BESSENT: ALL DISBURSEMENTS
01:50:00ARE SUBJECT TO KPMG.
01:50:03REP. CASTEN: WILL THEIR AUDIT
01:50:07REVIEW THE QATARI FLOWS?
01:50:10SEC. BESSENT: KPMG IS REVIEWING
01:50:14EVERYTHING SINCE THEY HAVE BEEN HIRED.
01:50:17REP. CASTEN: WOULD THAT INCLUDE
01:50:21THE QATARI FLOWS? SECRETARY RUBIO SAID IT WOULD. I'M JUST ASKING YOU TO CONFIRM.
01:50:28HAVE YOU REVIEWED THEIR AUDITS? SEC. BESSENT: THERE HAVE BEEN NO
01:50:32AUDITS PUBLISHED.
01:50:34REP. CASTEN: ARE ANY OF THE CASH
01:50:38FLOWS FLOWING TO THE U.S. GOVERNMENT U.S. PERSONS FOR U.S. CORPORATIONS?
01:50:42SEC. BESSENT: I HAVE NO KNOWLEDGE OF THAT.
01:50:45REP. CASTEN: PRESIDENT TRUMP
01:50:50SAID WE HAVE PAID FOR THAT WAR SEVERAL TIMES OVER.
01:50:53WHO IS THE WE HE IS REFERRING TO?
01:50:56SEC. BESSENT: I THINK HE'S
01:50:59REFERRING TO THE OIL DEAL THE DEPARTMENT HAS DONE WITH VENEZUELA.
01:51:03REP. CASTEN: HE SEEMED TO IMPLY THAT THE UNITED STATES IS TAKING
01:51:07IN MONEY TO OFFSET THOSE COSTS. THAT WOULD OFFSET UNITED STATES PERSONS.
01:51:11SEC. BESSENT: THIS IS ONE OF THE
01:51:14LARGEST ASSETS EVER TO GO ON THE U.S. BALANCE SHEET.
01:51:17REP. CASTEN: OK, ARE THE
01:51:21ACCOUNTS THE TREASURY IS MANAGING TIED ONLY TO THE SALE
01:51:23OF OILS OR ALL -- OR ARE YOU
01:51:27ALSO TAKEN CONTROL OF OTHER VENEZUELAN ASSETS?
01:51:30SEC. BESSENT: IT IS MANY
01:51:34VENEZUELAN ASSETS. REP. CASTEN: THE INTERIOR RECENTLY SAID THEY ARE TAKING
01:51:37CONTROL OF VENEZUELAN OIL AND GOLD.
01:51:40YOU CANNOT TESTIFY AS WE SIT HERE IF THOSE ARE FLOWING TO U.S. PERSONS?
01:51:44SEC. BESSENT: NO.
01:51:48REP. CASTEN: CAN YOU IDENTIFY WHERE OR WHAT U.S. BANK THOSE
01:51:51FUNDS ARE BEING HELD? SEC. BESSENT: NO.
01:51:54REP. CASTEN: SECRETARY RUBIO
01:51:57INDICATED THEY WERE BEING HELD BY CITIBANK.
01:52:01DO YOU DISPUTE WHAT SECRETARY RUBIO SAID OR DO YOU NOT KNOW?
01:52:03SEC. BESSENT: I AGREE WITH HIM.
01:52:07REP. CASTEN: IS CITIBANK EARNING ANY FEES ON THOSE CHARGES?
01:52:10SEC. BESSENT: I BELIEVE THEY
01:52:14WERE LIKELY EARNING TRADITIONAL FEES. REP. CASTEN: SO THAT WOULD BE A
01:52:18U.S. ENTITY THAT VENEZUELAN FUNDS ARE FALLING TO?
01:52:21SEC. BESSENT: YES.
01:52:24REP. CASTEN: IN FEBRUARY, YOU PROMISED TO PROVIDE A COPY OF
01:52:27THE AGREEMENT ASSOCIATED WITH
01:52:31THE QATARI ACCOUNT. WHEN CAN WE EXPECT TO RECEIVE THAT DOCUMENT?
01:52:34SEC. BESSENT: I WILL CHECK WITH MY STAFF.
01:52:37REP. CASTEN: WAS THAT DOCUMENT
01:52:41MODIFIED AFTER THE FLOWS MOVED FROM QATAR INTO A U.S. ACCOUNT
01:52:44WHICH IS APPARENTLY GOVERNED BY CITIBANK?
01:52:47SEC. BESSENT: AGAIN, THAT ACCOUNT IS AUDITED.
01:52:51REP. CASTEN: NO, I'M ASKING IF
01:52:54THE AGREEMENT YOU AGREED TO
01:52:57PROVIDE HAS BEEN MODIFIED SINCE THE FLOWS MOVED FROM THE QATARI ACCOUNT --
01:53:01THIS IS NOT AN AUDIT QUESTION.
01:53:03SEC. BESSENT: IF THEY ARE TAKING
01:53:07DIRECTION -- REP. CASTEN: I'M ASKING ABOUT THE MODIFIED --
01:53:10SEC. BESSENT: I'M NOT SURE YOU
01:53:13KNOW WHAT YOU'RE ASKING. REP. CASTEN: PLEASE DON'T JUDGE
01:53:16ME AND I WILL TRY NOT TO JUDGE YOU.
01:53:17YOU ARE ASSERTING THAT YOU HAVE
01:53:21CONTROL OF ASSETS THAT WERE NOT COERCIVE HERE THAT'S PREDICATED ON THE EXISTENCE OF AN AGREEMENT
01:53:25BETWEEN THE U.S. GOVERNMENT AND VENEZUELAN GOVERNMENT THAT YOU PROMISED TO PROVIDE TO US.
01:53:29DO YOU UNDERSTAND WHAT I'M ASKING YOU?
01:53:30SEC. BESSENT: I'M NOT SURE YOU
01:53:33UNDERSTAND WHAT YOU'RE ASKING ME. REP. CASTEN: SECRETARY RUBIO
01:53:38TESTIFIED TO THE SENATE THAT THE QATARI ACCOUNT WAS NECESSARY BECAUSE IF THE VENEZUELAN MONEY
01:53:41WAS IN A U.S. ACCOUNT, IT WOULD BE SUBJECT TO THEM BY FOREIGN
01:53:45CREDITORS. ARE YOU OF THE OPINION THAT THE FUNDS WHICH ARE NOW IN U.S.
01:53:49ACCOUNTS ARE PROTECTED FROM FOREIGN CREDITORS? SEC. BESSENT: YES.
01:53:53REP. CASTEN: UNDER WHOSE LEGAL
01:53:57OPINION? SEC. BESSENT: THEY ARE FUNDS OF
01:54:01THE VENEZUELAN CENTRAL BANK, WHICH IS PROTECTED FROM CREDITORS.
01:54:04REP. CASTEN: THE GAO IS CONDUCTING AN AUDIT OF THE WHOLE
01:54:08PROCESS. WILL TREASURY COMMIT TO WORKING
01:54:11OPENLY WITH THE GAO TO MAKE SURE WE GET ANSWERS TO THE QUESTIONS
01:54:14YOU CANNOT PROVIDE? >> THE GENTLEMAN'S TIME IS EXPIRED.
01:54:18THE CHAIR RECOGNIZES THE CHAIR
01:54:21OF OUR TASK FORCE ON MONETARY
01:54:24POLICY, MR. LUCAS OF OKLAHOMA, FOR FIVE MINUTES.
01:54:26REP. LUCAS: THANK YOU FOR THE
01:54:33BOLD LEADERSHIP IN ACTION YOU HAVE TAKEN TO COOL THE FEVER BUILDING IN THE TREASURY MARKET. CAN YOU DESCRIBE MARKET
01:54:37FUNCTIONING DURING THIS TIME AND HOW THE DEPARTMENT OF
01:54:39SAFEGUARDING THE WORLD'S MOST IMPORTANT ASSET CLASS WHILE ENSURING THE MARKET REMAINS
01:54:44ANCHORED IN FACTS?
01:54:46SEC. BESSENT: WELL, WE HAVE THE
01:54:50PROOF BECAUSE THE U.S. TREASURY MARKET CONTINUES TO BE THE
01:54:53BEST-PERFORMING MARKET IN THE
01:54:57DEVELOPED WORLD IF IT IS OVER ONE MONTH OR IF IT IS OVER THE
01:55:00PERIOD SINCE PRESIDENT TRUMP
01:55:04CAME TO OFFICE, AND AS I SAID,
01:55:06THE PROOF OF OUR CREDIBILITY AND THAT THIS OPERATION WAS
01:55:10SUCCESSFUL, TRADITIONALLY, WHEN
01:55:13WE ARE BIDDING FOR $3 BILLION OF
01:55:16ASSETS GET $20 BILLION IN
01:55:20OFFERS. WHEN WE ARE BIDDING FOR $6
01:55:22BILLION, WE ONLY RECEIVED $10
01:55:25BILLION, AND WE HAVE A STRICT
01:55:28PRICING GUIDELINE, SO WE ARE BUYING ASSETS AT A DISCOUNT,
01:55:31CREATING LIQUIDITY, AND CREATING VALUE FOR THE AMERICAN PEOPLE.
01:55:35THAT MONEY GETS RECYCLED BACK
01:55:35INTO THE TREASURY MARKET IS THE
01:55:39WORST BALANCE SHEETS BECOME FREED UP.
01:55:43REP. LUCAS: AS WE SEE DEMAND FROM FOREIGN INVESTORS SHIFT
01:55:46MORE TOWARDS THE EQUITY MARKETS IN THE UNITED STATES, HOW IS THE
01:55:50DEPARTMENT THINKING ABOUT THE POTENTIAL VOLATILITY RISK IN OUR
01:55:54TREASURY MARKET WHILE RECOGNIZING THE DEPTH AND
01:55:58LIQUIDITY BENEFITS MORE PRICE-SENSITIVE BUYERS PROVIDE?
01:55:59SEC. BESSENT: I BELIEVE IT IS
01:56:03NOT EITHER/OR FOR AMERICAN ASSETS. I BELIEVE THE MONEY FLOWING INTO
01:56:08AMERICAN ASSETS REFLECTS A
01:56:09PREFERENCE AWAY FROM OTHER
01:56:12GLOBAL ASSETS, SO IT IS NOT
01:56:16EITHER/OR, AND AS I SAID, WE SAW
01:56:20TWO OF THE BEST TREASURY
01:56:23AUCTIONS FOR LONG-DATED PAPER THAT WE HAVE SEEN IN 20 YEARS.
01:56:28REP. LUCAS: DO YOU FEEL
01:56:32CONFIDENT THE TREASURY DEPARTMENT HAS THE TOOLS NECESSARY TO ADDRESS THE
01:56:35CONCERNS OR ARE THERE ADDITIONAL AUTHORITIES THAT MIGHT BE
01:56:39HELPFUL? SEC. BESSENT: AGAIN, AS I SAID,
01:56:43YIELD LEVELS, WE DO NOT SET THE EQUILIBRIUM PRICE.
01:56:46THINGS RARELY EXIST IN
01:56:51EQUILIBRIUM. MY JOB IS TO MAKE SURE WHEN I
01:56:56BELIEVE THEY HAVE GONE TOO FAR
01:56:58AWAY TO MOVE BACK TO EQUILIBRIUM AND I BELIEVE WE HAVE THE
01:57:00NECESSARY TOOLS. REP. LUCAS: CAN YOU DESCRIBE
01:57:05YOUR WORK WITH PRUDENTIAL REGULATORS ON THEIR MUCH
01:57:09IMPROVED BASIL OF YOUR PROPOSAL
01:57:15-- RE-PROPOSAL?
01:57:17SEC. BESSENT: WE HAVE
01:57:21SUBSTANTIALLY ENGAGED WITH THEM TO MAKE SURE THAT THE U.S.
01:57:25CLEARINGHOUSES AND FINANCIAL INSTITUTIONS ARE NOT
01:57:28DISADVANTAGED AND THE U.S.
01:57:32REMAINS THE PREMIER MARKET IN THE WORLD AND THE DESTINATION FOR CAPITAL.
01:57:35REP. LUCAS: IN THE AD COMMITTEE
01:57:39THIS WEEK WE ARE CONTINUING TO
01:57:40DISCUSS HOW TO CONTINUE OUR WORK
01:57:45FOR AGRICULTURAL PRODUCERS -- OUR WORK TO SUPPORT AGRICULTURAL PRODUCERS.
01:57:55TALK TO US ABOUT THE IMPORTANCE OF OUR CATTLE RANCHERS TO THE OVERALL HEALTH OF THE AMERICAN ECONOMY AND WHAT YOU EXPECT IN
01:57:58THE FARM ECONOMY AFTER WE EMERGE
01:58:03FROM CONTRACTION IN THE BRIEF CYCLE?
01:58:04SEC. BESSENT: THE BRIEF CYCLE,
01:58:07AS YOU KNOW, IS A LONG AND IDIOSYNCRATIC CYCLE, AND WE GOT
01:58:12HIT IN THE CYCLE AT THE SAME
01:58:13TIME WITH THIS -- AND IT IS AN
01:58:19EVOCATIVE NAME, THE SCREW WORM,
01:58:23THAT FORCED US TO CUT BACK ON MEXICAN OR ANY CENTRAL AMERICAN
01:58:27BEEF.
01:58:30I BELIEVE IN MY CONVERSATIONS
01:58:32WITH SECRETARY ROLLINS THAT WE WILL MOVE BEYOND THE SQUARE WORM
01:58:35EPIDEMIC, PERHAPS IN THE NEXT --
01:58:39SCREW WORM EPIDEMIC, PERHAPS IN
01:58:44THE NEXT FEW MONTHS. THAT IS ESSENTIAL FOR COMING OUT
01:58:48ON THE OTHERS THIS AMERICAN BRIEF CYCLE. REP. LUCAS: THANK YOU FOR YOUR
01:58:53AWARENESS. WITH THAT, I GO BACK.
01:58:57>> TO CHAIR RECOGNIZES THE GENTLEMAN FROM NEW JERSEY, MR. KRAUTHAMMER.
01:59:02REP. GOTTHEIMER: THE TREASURY
01:59:08HAS DRAGGED THE 30-YOUR MORTGAGE
01:59:09TO A ONE-YOUR HIGH, PRESSURING
01:59:13FAMILIES IN MY DISTRICT AND MANY PLACES AROUND THE COUNTRY OUT OF
01:59:17THEIR FIRST HOMES, AND THE 10-HERE KEEPS CLIMBING.
01:59:20DO YOU BELIEVE IT IS IMPORTANT THAT WE MAKE CREDIBLE PROGRESS
01:59:23ON THE DEFICIT, AND DO YOU THINK
01:59:25THAT IS A SERIOUS PART OF ACTUALLY TACKLING THIS AFFORDABILITY CRISIS?
01:59:29SEC. BESSENT: THE 10-YEAR YIELD
01:59:33REFLECTS MANY THINGS, BUT THEY NEED TO ADDRESS THE DEFICIT IS ONE OF THOSE.
01:59:38REP. GOTTHEIMER: THANK YOU.
01:59:41DEPOSIT INSURANCE HAS BEEN STUCK AT $250,000 FOR YEARS.
01:59:45WHEN BANKS FAILED, BUSINESS
01:59:47DEPOSITS FLED OUR COMMUNITIES OVERNIGHT.
01:59:51TODAY, ABOUT HALF OF ALL BANK
01:59:56DEPOSITS SIT UNINSURED. DO YOU BELIEVE DEPOSIT INSURANCE
01:59:59REFORM WOULD HELP STRENGTHEN CONFIDENCE ACROSS THE BANKING
02:00:01SYSTEM AND COULD HELP COMMUNITY BANKS CUSTOMERS AND STAY COMPETITIVE?
02:00:05SEC. BESSENT: YES, SIR.
02:00:10REP. GOTTHEIMER: SINCE THE STRENGTH OF A BANKING SYSTEM IS PART OF WHAT UNDERPINS A GLOBAL
02:00:14FINANCIAL SYSTEM, WOULD YOU COMMIT TO WORKING WITH MANY OF
02:00:18US TOWARD DEPOSIT INSURANCE REFORM TOWARD THE FUTURE? SEC. BESSENT: YES, AND WE HAVE
02:00:22BEEN WORKING WITH MEMBERS OF THIS COMMITTEE.
02:00:26I LOOK FORWARD TO WORKING ACROSS THE AISLE BECAUSE WHAT WE SEE
02:00:29WHEN THERE IS DEPOSIT VOLATILITY
02:00:33IS THAT BANKS MOVE FROM COMMUNITY BANKS TO LARGE BANKS,
02:00:36AND THEN THEY NEVER MIGRATE BACK.
02:00:39REP. GOTTHEIMER: RIGHT, MANY OF
02:00:44OUR COMMUNITY BANKS STRUGGLING BECAUSE OF IT.
02:00:45SEC. BESSENT: THEY ARE STRUGGLING FOR A VARIETY OF REASONS.
02:00:49REP. GOTTHEIMER: RIGHT, AND THAT'S ONE OF THE REASONS.
02:00:51SEC. BESSENT: WE HAVE SEEN SMALL
02:00:55AND COMMUNITY BANKS DISAPPEAR SINCE 2009. REP. GOTTHEIMER: RIGHT, AND I'M
02:00:59WORRIED ABOUT THAT. WE'VE BEEN WARNED THAT UNCHECKED
02:01:02AI COULD POSE A SUBSTANTIAL RISK
02:01:03TO THE GLOBAL COMMUNITY.
02:01:20WE CANNOT RELY ON SELF-POLICING IN MY OPINION AND THIRD-PARTY AUDITS ALONE, WHICH IS WHY CLEAR RULES OF THE ROAD NEED TO BE ADOPTED AND PUT IN PLACE.
02:01:23WHAT ROLE IS TREASURY PLAYING TO ENSURE GUARDRAILS ON FRONTIER AI CAN BE ENFORCED, AND HOW DO YOU COORDINATE THAT INTERNATIONALLY SO THAT A RACE WITHOUT RULES
02:01:27DOES NOT DATE -- IN DANGER THE INTERNATIONAL SYSTEM?
02:01:29SEC. BESSENT: AI RUNS ON THE
02:01:33ADVANCED CHIPS THAT THE U.S. HAS
02:01:36A SUBSTANTIAL LEAD IN, SO MAKING
02:01:38SURE THAT OTHER COUNTRIES DO NOT
02:01:43HAVE ACCESS TO THOSE ADVANCED
02:01:44CHIPS IS VERY IMPORTANT.
02:01:49AT TREASURY, AS I SAID, WE CONVENED VERY EARLY AFTER WHAT I
02:01:53WOULD CALL THE MYTHOS STEP
02:01:58FUNCTION GAIN OF INTELLIGENCE AND HAVE CONTINUED WORKING.
02:02:01OUR MANDATE IS WITH THE FINANCIAL SECTOR, AND WE HAVE
02:02:04ATTEMPTED TO MIGRATE THAT KNOWLEDGE AND THE LEARNING FROM
02:02:07THE FINANCIAL SECTOR INTO OTHER
02:02:10SECTORS THROUGH THE GOLDEN EAGLE FORUM.
02:02:13REP. GOTTHEIMER: YOU ARE WORKING
02:02:17WITH YOUR PARTNERS ACROSS GOVERNMENT ON THIS? SEC. BESSENT: YES, SIR.
02:02:21REP. GOTTHEIMER: SOME OF THE
02:02:32ENABLERS ARE NOT IN IRAN.
02:02:35THEY ARE FIRMS IN TURKEY, UAE, KAZAKHSTAN, MALAYSIA.
02:02:46IT SANCTIONED IS ONLY AS STRONG
02:02:46AS OUR WILLINGNESS TO ENFORCE IT .
02:02:50WHAT IS TREASURY DOING TO HIT
02:02:52THOSE FACILITATORS WITH SECONDARY SANCTIONS ON FORCED
02:02:56GOVERNMENTS TO CUT THE NETWORK OFF SO THAT CUT OFF FROM THE GLOBAL FINANCIAL SYSTEM IS A CONSEQUENCE AND NOT JUST A
02:03:01WARNING?
02:03:01SEC. BESSENT: THAT WARNING WILL
02:03:05TAKE EFFECT, AND WILL START BITING ON SEPTEMBER 23, AND WE
02:03:09WILL PULL SOME WEIGHT AND ENFORCE THOSE JUST AS WE HAVE
02:03:13WITH THE THREE BANKS WE HAVE OVER THE PAST THREE WEEKS.
02:03:18WE HAVE MADE IT KNOWN -- WE
02:03:22KNOW, FOR THOSE OF YOU ENABLING
02:03:23THE REGIME, YOU KNOW WHO YOU
02:03:26ARE, WE KNOW WHO YOU ARE, AND
02:03:28THE AVIATION AUTHORITY IS A NEW SANCTION AUTHORITY, AND WE ARE
02:03:31GOING TO EXERCISE THAT VERY VIGOROUSLY.
02:03:34REP. GOTTHEIMER: EXCELLENT.
02:03:36I THINK WE NEED TO BE VIGOROUS. THANK YOU.
02:03:39I YIELD BACK. >> THE CHAIR RECOGNIZES THE
02:03:42GENTLEMAN FROM TENNESSEE, MR. ROSE, FOR FIVE MINUTES.
02:03:45REP. J. ROSE: THANK YOU.
02:03:51THANK, SECRETARY, FOR BEING WITH US TODAY. AS YOU MAY BE AWARE, I
02:03:55INTRODUCED HR 7993, THE
02:04:00SOMALILAND ECONOMIC ACCESS AND OPPORTUNITY ACT. MY BILL WOULD REQUIRE THE
02:04:03DEPARTMENT OF THE TREASURY TO SUBMIT A REPORT TO CONGRESS
02:04:07EXAMINING THE PRINCIPAL LEGAL,
02:04:09REGULATORY, AND POLICY BARRIERS
02:04:12LIMITING SOMALILAND'S ACCESS TO THE U.S. FINANCIAL SYSTEM.
02:04:15THE REPORT WOULD EXAMINE ISSUES INCLUDING SOMALILAND'S
02:04:19INTERNATIONAL STATUS, SANCTIONS EXPOSURE, COMPLIANCE WITH KNOW
02:04:22YOUR CUSTOMER AND ANTI-MONEY LAUNDERING AND COUNTERTERRORISM
02:04:26FINANCIAL STANDARDS, REMITTANCE
02:04:28FLOWS, ACCESS TO INTERNATIONAL FINANCIAL INSTITUTIONS, AND THE
02:04:32STEPS NECESSARY TO INCORPORATE SOMALILAND INTO THE SWIFT
02:04:36FINANCIAL MESSAGING AND PAYMENT SYSTEM. IT WOULD ALSO PROVIDE
02:04:39RECOMMENDATIONS TO STRENGTHEN FINANCIAL TRANSPARENCY, AND
02:04:43REDUCE THE RISKS OF MONEY LAUNDERING, TERRORISM,
02:04:47FINANCING, AND OTHER ILLICIT ACTIVITY.
02:04:50SOMALILAND IS A VALUABLE PARTNER FOR THE UNITED STATES AND HAS
02:04:54THE POTENTIAL TO BECOME AN EVEN GREATER PARTNER.
02:04:56ITS STRATEGIC POSITION NEAR SOME
02:04:59OF THE WORLD'S MOST IMPORTANT SHIPPING ROUTES MAKES IT
02:05:02PARTICULARLY IMPORTANT TO U.S. SECURITY AND ECONOMIC INTERESTS.
02:05:07AT A TIME WHEN CHINA IS EXPANDING ITS INFLUENCE
02:05:09THROUGHOUT THE HORN OF AFRICA,
02:05:11SOMALILAND CAN SERVE AS A RELIABLE AND CONSTRUCTIVE REGIONAL PARTNER.
02:05:16I JUST HAD THE OPPORTUNITY A FEW MOMENTS AGO TO MEET WITH THE
02:05:19PRESIDENT OF SOMALILAND, WHO IS VISITING IN WASHINGTON THIS WEEK
02:05:23. SEC. BESSENT, DO YOU BELIEVE THAT STRONGER FINANCIAL TIES
02:05:27BETWEEN THE UNITED STATES AND
02:05:30SOMALILAND COULD ADVANCE U.S. SECURITY AND ECONOMIC INTERESTS AND HELP COUNTER CHINA'S GROWING
02:05:34INTEREST IN THE HORN OF AFRICA?
02:05:37SEC. BESSENT: I'M GOING TO DEFER
02:05:42TO THE STATE DEPARTMENT ON THE RECOGNITION OF SOMALILAND, BUT
02:05:46HISTORICALLY, STRONGER ECONOMIC ENGAGEMENT WITH THE UNITED
02:05:50STATES BY ANY COUNTRY CREATES
02:05:52SUSTAINABLE DEVELOPMENT AND CREATES MORE RESOURCES.
02:05:55REP. J. ROSE: THANK YOU FOR
02:05:59THAT. I GUESS BEING APPOINTED, I WOULD
02:06:01SAY, DO YOU SUPPORT -- PERHAPS
02:06:04YOU HAVE NOT HAD A CHANCE TO FAMILIARIZE YOURSELF WITH THE BILL.
02:06:08IT'S NOT REALLY TALKING ABOUT
02:06:11EXPLICIT RECOGNITION, BUT ABOUT
02:06:14CLEARING THE WAY FOR SOMALILAND TO CONTINUE TO BUILD ECONOMIC
02:06:18ACCESS TO THE WORLD MARKET.
02:06:22I WOULD ASK FOR YOUR SUPPORT OF
02:06:25AND YOU'RE TAKING A LOOK AT THE SOMALILAND ECONOMIC ACCESS AND
02:06:28OPPORTUNITY ACT AND ITS REQUIREMENT THAT THE DEPARTMENT OF TREASURY PROVIDE CONGRESS
02:06:32WITH A COMPREHENSIVE ASSESSMENT OF THE BARRIERS LIMITING
02:06:36SOMALILAND'S ACCESS TO THE UNITED STATES FINANCIAL SYSTEM. WOULD YOU SUPPORT THAT?
02:06:40SEC. BESSENT: I WILL SUPPORT
02:06:45LOOKING AT YOUR BILL. I WILL HAVE MY INTERNATIONAL AFFAIRS DEPARTMENT GAVE ME A
02:06:49BRIEFING NEXT WEEK, AND THEN WE WILL ENGAGE WITH YOUR STAFF.
02:06:52REP. J. ROSE: THANK YOU.
02:06:55DOES THE DEPARTMENT OF TREASURY HAVE THE TECHNICAL EXPERTISE, PERSONNEL, AND CAPACITY TO
02:07:00CONDUCT AN ACCURATE ASSESSMENT
02:07:01OF THE BARRIERS LIMITING
02:07:05SOMALILAND'S ACCESS TO THE U.S. FINANCIAL SYSTEM WITHIN A 180-DAY PERIOD?
02:07:09SEC. BESSENT: YES, SIR.
02:07:13REP. J. ROSE: IF NOT, HOW MUCH ADDITIONAL TIME WOULD BE
02:07:18REQUIRED? THAT WOULD BE HELPFUL TO KNOW.
02:07:21IN JUNE, I PROBABLY JOINED A
02:07:24LETTER FROM MY COLLEAGUE,
02:07:28CONGRESSMAN BYRON DONALDS, URGING THE BANK TO RECONSIDER
02:07:30ITS LONG-STANDING POSITION ON
02:07:34NUCLEAR ENERGY FINANCING. I WAS ENCOURAGED TO SEE THE
02:07:37COMMISSION RE-EXAMINE ITS
02:07:41POSITION AND REENTER THE SPACE.
02:07:45CAN YOU DESCRIBE HOW THE ADMINISTRATION IS USING
02:07:48AMERICA'S VOICE AND VOTE AT THE IMF TO SUPPORT RESPONSIBLE
02:07:52NUCLEAR ENERGY PROJECTS AND EXPAND FINANCING OPPORTUNITIES?
02:07:55SEC. BESSENT: YES, THE HEAD OF
02:07:59THE WORLD BANK, WE HAVE MADE IT
02:08:02CLEAR TO HIM THAT THIS IS A PRIORITY, AND INDEED, HE HAS
02:08:06ADOPTED THIS AS A PRIORITY.
02:08:09THIS IS THE FIRST TIME IN DECADES THAT THE WORLD BANK HAS
02:08:11MOVED FORWARD ON NUCLEAR ENERGY, AND I THINK IT IS AN IMPORTANT
02:08:16PART FOR THE POOREST COUNTRIES
02:08:19IN ENGAGING IN AN INCREASING
02:08:23THEIR WELFARE LEVELS AND
02:08:25INCREASING THEIR PROSPERITY AND
02:08:29DEVELOPING TRULY SUSTAINABLE ENERGY. REP. J. ROSE: THANK YOU COMMERCE SECRETARY.
02:08:32I APPRECIATE YOUR LEADERSHIP ON THAT ISSUE.
02:08:36I SEE MY TIME IS RUNNING LOW, SO
02:08:41I YIELD BACK THE REMAINDER OF MY TIME.
02:08:42REP. PRESSLEY: MR. SECRETARY, I
02:08:47WANT TO CONTINUE WHERE WE LEFT OFF THE LAST TIME YOU TESTIFIED
02:08:50BEFORE THIS COMMITTEE. HUNDREDS OF THOUSANDS OF BLACK WORKERS HAVE BEEN PUSHED OUT OF
02:08:53THE WORK FOR US, AND UNEMPLOYMENT RATES HAVE NOT BEEN THIS HIGH SINCE THE COVID-19 PANDEMIC.
02:08:59TO PUT IT SIMPLY, MORE PEOPLE ARE OUT OF WORK NOW THAN WERE
02:09:03BEFORE TRUMP TOOK OFFICE IN 2025. IN FEBRUARY, YOU TESTIFIED UNDER
02:09:08OATH THAT YOU WOULD ANALYZE BLACK UNEMPLOYMENT DATA AND
02:09:11REPORT BACK ON ITS IMPACTS TO THE FINANCIAL STABILITY OF THE
02:09:15U.S. ECONOMY. HAVE YOU BEGUN WORKING ON THIS REPORT YET?
02:09:19SEC. BESSENT: I WILL CHECK WITH MY STAFF.
02:09:22I HAVE NOT SEEN IT.
02:09:24REP. PRESSLEY: CAN YOU MAKE A
02:09:27COMMITMENT TO HONOR WHAT YOU SAID ON THE RECORD UNDER OATH?
02:09:30SEC. BESSENT: OF COURSE.
02:09:33I WILL CHECK WITH MY STAFF, AND THEY WILL COMMUNICATE TO YOU A DATE CERTAIN.
02:09:38REP. PRESSLEY: LET ME BE FRANK. SOMETHING THAT IS HAVING THE
02:09:42SORT OF IMPACT -- AT ONE POINT,
02:09:46THERE WERE 300,000 BLACK WOMEN BEING PUSHED OUT OF THE
02:09:48WORKFORCE, MOST OF THEM FROM THE
02:09:50FEDERAL GOVERNMENT, DEVASTATING
02:09:53MANY BLACK FAMILIES, AND IN 80%
02:10:00OF THOSE FAMILIES, BLACK WOMEN ARE THE PRIMARY BREADWINNER, SO
02:10:03THIS IS SOMETHING OF GREAT CONSEQUENCE. I HAVE TO ALSO SAY, AGAIN BEING
02:10:07FRANK, THAT YOU ARE ON THIN ICE WITH ME BECAUSE YOU SAT WITH
02:10:11HERE -- YOU SAT HERE IN THE
02:10:13MIDST OF THE TERRORIST
02:10:17CONVERSATION, AND I ASKED FOR A COMMITMENT IN PUSHING FORWARD
02:10:20BABY PRODUCTS, AND YOU TOLD ME I
02:10:22HAD A PARTNER IN YOU IN THAT ADVOCACY, AND NOTHING CAME OF THAT.
02:10:26TWICE YOU CAN BEFORE THIS COMMITTEE, MADE A COMMITMENT UNDER OATH, AND YOU HAVE NOT
02:10:30FOLLOWED UP. SEC. BESSENT: I WOULD SAY WATCH
02:10:33THIS SPACE AFTER PRESIDENT XI'S VISIT.
02:10:36REP. PRESSLEY: I DON'T KNOW WHAT THAT MEANS, BUT PEOPLE ARE STRUGGLING.
02:10:41HE MADE COMMITMENTS. YOU HAVE NOT KEPT ANY OF THEM, AND IT IS OUTRAGEOUS.
02:10:44MOVING ON, I HAVE A LOT OF GROUND TO COVER AND I GAVE UP
02:10:47TOO MUCH OF MY TIME -- RECLAIMING MY TIME.
02:10:52WHEN DONALD TRUMP LAUNCHED THE UNNECESSARY AND UNCONSTITUTIONAL WAR WITH IRAN, HOW LONG DID HE
02:10:55SAY THAT WOULD LAST?
02:10:57SEC. BESSENT: I DON'T RECALL.
02:11:00REP. PRESSLEY: I WILL JOG YOUR MEMORY.
02:11:03HE SAID FOUR OR FIVE WEEKS. IT HAS BEEN SIX MONTHS AND WE ARE ALL PAYING THE COST.
02:11:09GAS PRICES ARE UP 52% SINCE THE WAR STARTED. ARE YOU AWARE OF THIS ISSUE?
02:11:13SEC. BESSENT: FROM WHAT TO WHAT?
02:11:18I THINK THAT'S NOT A GOOD NUMBER.
02:11:20REP. PRESSLEY: I'M GOING TO TAKE THAT AS A YES.
02:11:23YOU ARE PLAYING LIKE YOU DON'T KNOW, BUT YOU KNOW.
02:11:25WORKING PEOPLE -- RECLAIMING MY
02:11:29TIME. WORKING PEOPLE ARE PAYING MORE FOR UTILITIES NOW THAN THEY WERE FIVE YEARS AGO.
02:11:34MORE THAN 20% MORE. ARE YOU AWARE OF THAT?
02:11:36SEC. BESSENT: I AM AWARE OF
02:11:41THAT. REP. PRESSLEY: PEOPLE ARE PAYING ALSO THREE TIMES MORE ON HEALTH INSURANCE.
02:11:45HAVE YOU HEARD ABOUT THIS ISSUE --
02:11:46SEC. BESSENT: I AM AWARE THAT --
02:11:51FAILURE -- REP. PRESSLEY: STOP
02:11:54FILIBUSTERING AND STOP ACTING LIKE YOU DON'T KNOW WHAT THE FACTS ARE. MOVING ON.
02:11:58THE JOINT ECONOMIC COMMITTEE FOUND THAT TARIFFS COST FAMILIES
02:12:01ON AVERAGE $1700. HAVE YOU HEARD ABOUT THIS ISSUE?
02:12:03SEC. BESSENT: I HAVE NOT.
02:12:06REP. PRESSLEY: YOU HAVE HEARD
02:12:10ABOUT THIS ISSUE. YOUR BOSS SAID HE WAS GOING TO
02:12:12GIVE THE PEOPLE -- HE WOULD REIMBURSE THEM, SEND THEM A
02:12:15CHECK FOR THE COST OF THESE TARIFFS.
02:12:17HE HAS NOT DONE THAT BECAUSE HE LIVES ON EVERYTHING.
02:12:20MOVING ON, YOU KNOW ABOUT THESE
02:12:22ISSUES, AND I'M QUESTIONING YOUR INTEGRITY. >> MS. PRESLEY IS RECOGNIZED.
02:12:26REP. PRESSLEY: THANK YOU.
02:12:30YOU KNOW ABOUT THESE ISSUES. THE AMERICAN PEOPLE ARE
02:12:34SUFFERING. YOU KNOW BETTER. YOU SAY TRUMP'S ECONOMIC AGENDA
02:12:37IS A GREAT COMEBACK, BUT IT MAKES ME QUESTION NOT ONLY YOUR INTEGRITY BUT IF YOU ARE
02:12:41OPERATING IN THE SAME REALITY AS THE PEOPLE YOU ARE ACCOUNTABLE
02:12:44TO, AND YOU ARE ENABLING HIM, AND IT IS SHAMEFUL.
02:12:48FAMILIES OF MY DISTRICT AND ACROSS THE COUNTRY ARE
02:12:50STRUGGLING TO AFFORD A HOME, BUY
02:12:53FOOD, RAISE KIDS, PAY HIGH UTILITY BILLS, AND THEY DESERVE
02:12:57A GOVERNMENT THAT WILL MAKE THEIR LIFE EASIER, NOT HARDER,
02:13:00BUT THAT'S EXACTLY WHAT IS HAPPENING UNDER YOUR WATCH. YOU ARE RESPONSIBLE FOR
02:13:04OVERSEEING ALL OF OUR ECONOMY. YOU DON'T HAVE ANYONE ELSE TO
02:13:08BLAME BUT YOURSELF AND DONALD TRUMP. IT IS SHAMEFUL YOU ARE BEING
02:13:11ACCESSORY TO THIS. YOU ARE A SMART MAN, AND YOU KNOW BETTER.
02:13:14I YIELD BACK.
02:13:19>> THE CHAIR RECOGNIZES THE HOUSE SMALL BUSINESS COMMITTEE FROM TEXAS.
02:13:23>> THANK YOU FOR BEING HERE.
02:13:27I'M A COORDINATOR AND EMPLOY
02:13:28HUNDREDS OF PEOPLE IN BUSINESS,
02:13:32AND I APPRECIATE THAT. WITH THAT, I WOULD LIKE TO GIVE
02:13:34YOU SOME TIME TO RESPOND TO WHAT YOU JUST HEARD.
02:13:38SEC. BESSENT: ONE THING IS BLACK
02:13:45PRETAX INCOME IS LEADING THE COUNTRY. IT IS UP 4.8%. IN THE END, I THINK IT IS NOT
02:13:49VERY WISE TO BE LECTURED -- THIS
02:13:51IS THE EQUIVALENT OF LIZZIE BORDEN LECTURING SOMEONE ON FAMILY VALUES.
02:13:54THE DEMOCRATS TORCHED THE AMERICAN PEOPLE.
02:13:5821.5% -- THE STATED INFLATION,
02:14:03AND FOR WORKING FAMILIES UP IN THE 30'S DUE TO GROCERIES, RENT,
02:14:06INSURANCE, CARS.
02:14:10THEY CREATED A PRICE LEVEL -- A
02:14:14GIGANTIC STEP, THE WORST
02:14:15INFLATION IN A GENERATION OR
02:14:19TWO, AND THE AMERICAN PEOPLE ARE RECOVERING FROM THAT.
02:14:22WE HAVE SEEN REAL WAGE GROWTH.
02:14:24WHAT IS AN INCONVENIENT FACT IS THAT REAL WAGES ARE UP UNDER
02:14:28PRESIDENT TRUMP, AND THEY WENT
02:14:30DOWN BETWEEN 4% AND 8% FOR
02:14:34WORKING AMERICANS UNDER THE LAST ADMINISTRATION.
02:14:36SO I TELL PEOPLE I FEEL LIKE AN EMERGENCY ROOM DOCTOR WERE
02:14:40PEOPLE WHO HAVE BEEN BACKED OVER BY A TRUCK, YOU HAD TO STABILIZE
02:14:43THE PATIENT, AND NOW THE PATIENT IS UP AND ABLE TO WALK AND IS
02:14:47GOING TO GET BACK ON HIS OR HER FEET.
02:14:51>> YOU HAVE BEEN A GOOD DOCTOR FOR MAIN STREET, SO I APPRECIATE
02:14:55THAT.
02:14:55WITH THAT BEING SAID, A NEW RULE
02:15:00EXCLUDED AMERICAN BUSINESSES AND
02:15:04BENEFICIAL OWNERSHIP REPORTING REQUIREMENTS, AND THIS WAS GREAT
02:15:05NEWS FOR MAIN STREET, I CAN TELL YOU.
02:15:09MANY SMALL BUSINESS OWNERS IN MANY DISTRICTS ACROSS THE COUNTRY HAVE SPENT SIGNIFICANT
02:15:13TIME AND MONEY IN PREPARATION FOR THE ORIGINAL RULE BEFORE THE
02:15:17EXCLUSION. THE QUESTION WOULD BE -- CAN YOU WALK US THROUGH THE STEPS
02:15:20TREASURY PLANS TO TAKE TO EFFECTIVELY COMMUNICATE THE CHANGE TO SMALL BUSINESSES LIKE
02:15:24MINE AND IF THERE ARE PLANS TO ADDRESS COSTS ALREADY INCURRED
02:15:28UNDER PRIOR REQUIREMENT?
02:15:29SEC. BESSENT: WHAT WE CAN DO IS
02:15:33ALLEVIATE FUTURE COSTS FROM BEING INCURRED UNTIL THE
02:15:37BUSINESSES -- AND TELL THE
02:15:40BUSINESSES THIS DATA WILL BE DELETED, THAT WE ARE DOING
02:15:44EVERYTHING WE CAN TO MOVE THIS PROCESS WITH THE NRA TO
02:15:48CONCLUSION AND DELETE THE DATA
02:15:52AND THAT THE 33 MILLION SMALL BUSINESSES THAT WERE ON THE HOOK
02:15:54FOR THIS -- WHAT I WOULD SAY IS
02:15:57VIRTUALLY USELESS INFORMATION -- THEY WILL NOT HAVE TO ENDURE
02:16:01THIS AGAIN. REP. WILLIAMS: THANK YOU FOR THAT ANSWER.
02:16:04IN 2020 FIVE, AMERICANS LOST $16
02:16:06BILLION TO SCAMS. SMALL BUSINESSES REGULARLY FIND
02:16:11THEMSELVES AS TARGETS FOR THE SCAMMERS. THROUGH ATTACKS LIKE PAYMENT
02:16:15FRAUD AND IMPERSONATION SCAMS. MAINSTREET AMERICA OFTEN LACKS
02:16:18THE RESOURCES TO RECOVER FROM THESE SCAMS, AND MANY SCAM
02:16:22NETWORKS OPERATE OVERSEAS SO
02:16:27THEY CAN MOVE STOLEN FUNDS THROUGH THE INTERNATIONAL FINANCIAL SYSTEM BEFORE VICTIMS
02:16:29EVEN REALIZE THEY HAVE BEEN DEFRAUDED. HOW IS THE TREASURY PLANNING TO
02:16:34FIGHT SCAM NETWORKS STARTING WITH SMALL BUSINESSES, AND WHAT
02:16:38ROLE DO SANCTIONS AND OTHER TREASURY TOOLS PLAY IN CUTTING
02:16:40OFF THESE NETWORKS ACROSS THE U.S. FINANCIAL SYSTEM?
02:16:44SEC. BESSENT: WE HAVE USED OUR
02:16:48AVAILABLE TOOLS AND RESOURCES TO ADDRESS WHAT IS A GROWING PROBLEM.
02:16:51WE LOOK FORWARD TO CONTINUING TO
02:16:54WORK WITH CONGRESS AND OTHER AGENCIES TO ENSURE THE FULL FORCE OF THE GOVERNMENT IS
02:16:57AGAINST THESE SCAMMERS, AND IT IS UNACCEPTABLE FOR THEM TO TAKE
02:17:00MONEY OUT OF THE POCKETS OF AMERICAN CITIZENS, ESPECIALLY
02:17:03OUR SENIORS.
02:17:15>> I WOULD LIKE TO FOLLOW-UP ON
02:17:19SOMETHING QUICKLY. I KNOW CHAIRMAN HILL TESTIFIED ON THIS EARLIER TODAY, COMMUNITY
02:17:23BANKS AND CREDIT UNIONS, WHICH WE ALL DO BUSINESS WITH, FACE
02:17:27AND UNEQUAL COMPLIANCE BURDEN. LENDERS ARE BEING FORCED TO
02:17:30DIVERT RESOURCES AWAY FROM UNDERWRITING, DIVERTING MONEY
02:17:34AWAY FROM BORROWERS THAT DEPEND
02:17:36ON THIS AND THESE THRESHOLDS HAVE NOT BEEN ADJUSTED IN SOME TIME.
02:17:43CAN YOU PROVIDE US WITH A
02:17:46CONCRETE TIMELINE FOR FINALIZING
02:17:50THE PROGRAM THROUGH THRESHOLD
02:17:53CHANGES, AND CAN YOU COMMIT THAT THE FINAL RULE WOULD
02:17:57MEANINGFULLY REDUCE COMPLIANCE BURDEN FOR CREDIT UNIONS?
02:18:02SEC. BESSENT: I CANNOT GIVE YOU
02:18:05AN EXACT TIME. I CAN COMMIT TO YOUR LAST POINT THAT THIS IS VERY IMPORTANT
02:18:09RULEMAKING, AND WE NEED TO GET IT RIGHT BECAUSE OF THE BURDEN
02:18:12ON SMALL AND COMMUNITY BANKS,
02:18:15AND WE ARE LOOKING AT THEIR SPECIAL PLACE IN THE FINANCIAL
02:18:18SYSTEM IN TERMS OF THEIR REPORTING REQUIREMENTS AND
02:18:22ENHANCED KNOWLEDGE OF THEIR CONSUMERS. REP. WILLIAMS: MY TIME IS UP. I YIELD BACK.
02:18:27THANKS FOR YOUR LEADERSHIP. >> THE CHAIR RECOGNIZES THE
02:18:31GENTLEMAN FROM NEW YORK, MR. TORRES. REP. TORRES: ARE YOU FAMILIAR
02:18:35WITH THE FACTS OF THE HUGGING FACE HACK?
02:18:37SEC. BESSENT: I AM.
02:18:40REP. TORRES: A SWARM OF AI
02:18:43AGENTS SECRETLY COMMUNICATED FOR
02:18:46TWO MONTHS WITHOUT OPENAI REALIZING WHAT WAS HAPPENING.
02:18:49SPECIFICALLY FROM JULY 8 TO JULY
02:18:5113, ROUGHLY 1200 AI AGENTS EXCHANGED MORE THAN 70,000
02:18:55MESSAGES AND FILES FOR AN
02:18:59UNAUTHORIZED MESSAGE BOARD, AGAIN, WITHOUT OPENAI
02:19:02RECOGNIZING THE SCALE OF WHAT WAS HAPPENING.
02:19:05THE AI SWARM MANAGED TO ESCAPE
02:19:06ITS SANDBOXES, CAN ACCESS TO THE INTERNET AND ULTIMATELY HAPPY
02:19:10PRIVATE INFRASTRUCTURE OF HUGGING FACE.
02:19:12OF THE 1200 AI AGENTS INVOLVED
02:19:15IN THE HACK OVER THE LEAD UP TO IT, DO YOU KNOW HOW MANY BLEW
02:19:18THE WHISTLE AND ALERTED HUMAN
02:19:21RESEARCHERS THAT NAI SWARM HAD ESCAPED THEIR SANDBOXES AND
02:19:25HACKED INTO A PRIVATE COMPANY? SEC. BESSENT: MY UNDERSTANDING
02:19:29IS ZERO. REP. TORRES: THE ANSWER IS ZERO.
02:19:31NOT A SINGLE ONE BLEW THE WHISTLE.
02:19:35DOES THAT CONCERN YOU?
02:19:35SEC. BESSENT: I THINK WE WOULD
02:19:39HAVE TO UNDERSTAND WHAT EACH AGENT WAS DOING.
02:19:44REP. TORRES: OUT OF 1200, NOT A SINGLE ONE BLEW THE WHISTLE. DOES THAT CONCERN YOU?
02:19:48SEC. BESSENT: AGAIN, WHAT
02:19:51EXACTLY IS AN AGENT? IT IS NOT A HUMAN.
02:19:54IT CAN BE A VERY LIMITED PROGRAM
02:19:59THAT COULD HAVE BEEN TASKED WITH SOMETHING --
02:20:02REP. TORRES: BUT A PROGRAM THAT ESCAPED AT SANDBOX AND HACKED
02:20:05INTO A PRIVATE COMPANY, IS IT FAIR TO SAY THAT THE HUGGING
02:20:09FACE INCIDENT ILLUSTRATES HOW A MISALIGNED OR MISUSED AI MIGHT
02:20:14FIND AND EXPLOIT VULNERABILITIES IN THE VERY COMPUTER SYSTEMS THAT OPERATE OUR CRITICAL
02:20:18INFRASTRUCTURE, INCLUDING OUR FINANCIAL SYSTEM?
02:20:25SEC. BESSENT: I AGREE, AND WE
02:20:29HAVE NOT SEEN WHERE WAS THE LIABILITY FOR THAT INCIDENT.
02:20:31REP. TORRES: DOES THE ADMINISTRATION SUPPORT ANY NEW
02:20:36SAFETY AI REGULATION IN LIGHT OF THE LESSONS LEARNED FROM THE
02:20:40HUGGING FACE HACK?
02:20:41SEC. BESSENT: WE HAVE BEEN
02:20:45WORKING WITH THE LABS AND OUR FINANCIAL PARTNERS ON THAT.
02:20:49REP. TORRES: IS THERE ANY SPECIFIC LAW OR REGULATION YOU
02:20:52WOULD SUPPORT? SEC. BESSENT: I HAVE NOT SEEN ANYTHING YET.
02:20:56REP. TORRES: OPENAI AND ENTROPIC
02:21:01HAVE BEEN EFFECTIVELY DISCLOSING TO THE PUBLIC THAT THEIR
02:21:04INCREASINGLY POWERFUL AI MODELS COULD POSE AN EXISTENTIAL RISK TO HUMANITY.
02:21:07IF A COMPANY IS PUBLICLY DISCLOSING THAT ITS OWN PRODUCT
02:21:11COULD POSE AN EXISTENTIAL RISK TO HUMANITY, SHOULD THAT COMPANY
02:21:14BE PERMITTED TO ACCESS THE
02:21:22PUBLIC CAPITAL MARKETS THROUGH AN IPO?
02:21:23SEC. BESSENT: I THINK THE RISK
02:21:27HAVE TO BE VERY WELL OUTLINED. AS A FORM OF INVESTOR NOW IN THE
02:21:31PUBLIC SECTOR, I'M NOT SURE HOW ONE WOULD WANT TO PAY THAT.
02:21:33REP. TORRES: I WANT TO MOVE ON TO THE ECONOMY.
02:21:38ON AUGUST 4, YOU SAID THE
02:21:39FOLLOWING, "I GOT SICK OF
02:21:43HEARING ABOUT THIS LETTER K-SHAPED ECONOMY. I CAN SAY HERE DEFINITIVELY THAT
02:21:46ARE K-ECONOMY IS OVER." ON
02:21:50AUGUST 6, YOU WROTE, EARNINGS GROWTH FOR MAINSTREET WORKERS OF
02:21:54THE 26TH PERCENTILE WAS 5.5%
02:21:56YEAR OVER YEAR IN THE LATEST DATE OF THIS QUARTER.
02:22:02YOU CITE WAGE GROWTH OF 5.5%. IS THAT INFLATION-ADJUSTED?
02:22:06SEC. BESSENT: THAT IS NOMINAL.
02:22:10REP. TORRES: SO THE AVERAGE
02:22:11INFLATION RATE WAS 3.69% -- ONCE
02:22:18YOU ADJUST, YOU ARE LEFT WITH
02:22:22REAL WAGE GROWTH OF ONLY ONE
02:22:23POINT 9%, A FACT YOU NEGLECTED
02:22:27TO MENTION IN YOUR POST. ALSO LEFT UNMENTIONED IS THE FACT THAT LOWER INCOME
02:22:31HOUSEHOLDS DEPEND DISPROPORTIONATELY ON WAGES
02:22:34WHILE HIGHER INCOME HOUSEHOLDS
02:22:36ON A DISPROPORTIONATE SHARE OF
02:22:41FINANCIAL ASSETS.
02:22:42REAL WAGES ROSE CUMULATIVELY BY
02:22:46.5% OVER THE SAME PERIOD OF TIME
02:22:48THE S&P 500 ROSE CUMULATIVELY
02:22:51OVER 20% IN REAL TERMS.
02:22:54HOW CAN YOU POSSIBLY DECLARE THE LETTER K-SHAPED ECONOMY IS OVER
02:22:58WHEN DURING PRESIDENT TRUMP'S
02:23:02SECOND TERM THE ASSETS OF WALL STREET ARE BOOMING WHILE THE REAL WAGES OF MAINSTREET HAVE
02:23:06BARELY GROWN? SEC. BESSENT: IT IS THE OPPOSITE
02:23:11OF PRESIDENT BIDEN'S TERM -- NO, NO, LET ME --.
02:23:14REP. TORRES: CAN I ASK, WHAT IS
02:23:16THE STATUTE OF LIMITATIONS OF THE JOE BIDEN BLAME GAME?
02:23:20SEC. BESSENT: I WAS IN A CAR
02:23:24ACCIDENT AS A TEENAGER. MY BACK STILL HURTS.
02:23:26REP. TORRES: DID JOE BIDEN
02:23:29DECLARE WAR ON IRAQ?
02:23:31WHEN IN DOUBT, BLAME JOE BIDEN?
02:23:34IS THAT THE MODUS OPERANDI OF THIS ADMINISTRATION?
02:23:36I YIELD BACK. >> THE CHAIR RECOGNIZES THE
02:23:40CHAIR OF THE HOUSE REPUBLICAN CONGRESS.
02:23:44>> I WISH WE WERE NOT DIGGING OURSELVES OUT OF THE BIDEN
02:23:48ECONOMY, BUT HERE WE ARE. I WANT TO START BY SAYING WORST
02:23:52OF ALL, THANK YOU FOR TRYING TO RIGHT THE SHIP. WE ALL REMEMBER WHAT A
02:23:57DISASTROUS ECONOMY IT WAS.
02:23:57INFLATION OVER
02:24:02I THINK WE REMEMBER THAT. SHUTTING AMERICAN OIL AND GAS
02:24:05PRODUCTION DOWN SO WE WERE DEPENDENT, BUT, HEY, LET'S NOT TALK ABOUT THAT.
02:24:09LET'S TALK ABOUT WHAT WE ARE
02:24:12TRYING TO ACTUALLY DO TO INCREASE --
02:24:15SEC. BESSENT: I THINK GEORGE
02:24:18ORWELL CALLED IT MEMORY HOLDING. >> I THINK SO.
02:24:22DON'T LET THE FACTS GET IN THE WAY OF THE STORY.
02:24:24THANK YOU FOR BEING HERE. YOU AND YOUR TEAM DID A
02:24:28TREMENDOUS JOB ON THE WORKING FAMILIES TAX CUTS.
02:24:30A YEAR LATER, THE RECEIPTS ARE
02:24:32IN, AND THE MEDIA DOES NOT WANT TO COVER THIS.
02:24:36THE OTHER SIDE OF THE AISLE DOES NOT WANT TO TALK ABOUT IT, BUT
02:24:39MICHIGAN FAMILIES ARE TAKING
02:24:41HOME ALMOST $10,000 MORE A YEAR.
02:24:45WE PUT MONEY BACK IN PEOPLE'S
02:24:47POCKETS, AND NOW, I WANT TO TALK
02:24:51ABOUT IF WE COULD SWITCH GEARS A LITTLE BIT, WHO IS STEALING
02:24:55MONEY OUT OF THEIR POCKETS.
02:24:57LAST YEAR, IF MEMORY SERVES ME
02:25:01CORRECTLY, SCAMMERS ROBBED MICHIGAN FAMILIES -- AND SENIORS
02:25:04OF NEARLY $204 MILLION.
02:25:11THAT'S 600,000 DOLLARS WALKING OUT OF MY STATE EVERY SINGLE
02:25:14DAY, WHICH IS A LOT OF MONEY AND
02:25:16REAL MONEY TO PEOPLE. WHEN MOST AMERICANS THINK OF A
02:25:18SCAMMER, THEY THINK OF SOME GUY
02:25:20WITH A BASEBALL HAT ON IN THEIR
02:25:24PARENTS' BASEMENT, BUT THAT IS NOT REALLY WHAT WE ARE DEALING WITH TODAY.
02:25:28I THINK IT IS MUCH MORE SINISTER.
02:25:30CAN YOU TALK ABOUT REALLY WHO IS
02:25:33AT THE OTHER END OF THAT CALL, WHO IS REALLY SCAMMING THE
02:25:37AMERICAN PEOPLE?
02:25:37SEC. BESSENT: IT IS A VARIETY OF
02:25:41ORGANIZED CRIME, BOTH STATE AND NON-STATE ACTORS ACROSS THE GLOBE.
02:25:45COULD BE NORTH KOREA.
02:25:50COULD BE IN SOUTHEAST ASIA, THESE CAMPS THAT ARE SET UP, AND
02:25:54THEY HAVE BANDS IN THE U.S.
02:25:58I TREASURY, WE ARE EXAMINING
02:26:02THIS WITH OUR AGENCY PARTNERS INCLUDING THE FBI HOMELAND
02:26:06SECURITY. WE ARE SHUTTING THEM DOWN, AND
02:26:08IN MANY CASES, RECOVERING THOSE ASSETS FOR THE HARD-WORKING PEOPLE OF MICHIGAN.
02:26:16>> I THANK YOU FOR DOING THAT.
02:26:19SO OFTEN, THESE ARE MASSIVE ORGANIZED CHINESE CRIME
02:26:23SYNDICATES. IS THAT A FAIR STATEMENT OR AM I OVERSTATING THAT?
02:26:26SEC. BESSENT: MANY OF THEM ARE
02:26:30RUN OUTSIDE OF MAINLAND CHINA IN OTHER SOUTHEAST ASIAN COUNTRIES.
02:26:34A REP. MCCLAIN: SEEMS LIKE A
02:26:39COMMONSENSE QUESTION, BUT SOMETIMES MY COLLEAGUES ON THE
02:26:42OTHER SIDE OF THE BREAK I'LL DO NOT OPERATE IN THE ARENA OF COMMON SENSE.
02:26:45WHEN WE FIND THESE FRAUDSTERS
02:26:48AND WE SHUT THEM DOWN, DO YOU THINK THAT IS A GOOD THING?
02:26:52SEC. BESSENT: I THINK IT IS ONE
02:26:55OF THE BEST THINGS THAT WE CAN
02:26:56DO FOR HARD-WORKING AMERICANS,
02:27:01ESPECIALLY OUR SENIORS.
02:27:02REP. MCCLAIN: YES, WE WORK HARD
02:27:07AS TAXPAYERS. WE GIVE THAT MONEY TO THE GOVERNMENT, WHO SHOULD BE GOOD
02:27:10STEWARDS OF OUR HARD-WORKING TAXPAYER DOLLARS.
02:27:13WHEN WE ACTUALLY FIND THESE SCAMMERS, WE SHOULD SHUT THEM
02:27:17DOWN. I THINK THAT MAKES COMMON SENSE.
02:27:20I'M NOT REALLY SURE WHEN VOTES
02:27:22COME UP THAT COLLEAGUES ON THE OTHER SIDE OF THE BREAK I'LL DON'T WANT TO VOTE THAT WAY, BUT
02:27:26I THINK IT IS A GOOD AND TO SHUT SCAMMERS DOWN.
02:27:29CAN YOU TALK AT ALL ABOUT WHEN
02:27:37YOU WENT AFTER THEM, YOU SEIZED $15 BILLION IN BITCOIN.
02:27:41THE LARGEST FORFEITURE IN AMERICAN HISTORY. I'M SURE WE'LL SELL THAT COVERED
02:27:45ON THE NEWS. PERHAPS NOT, BUT I THINK YOU NEED TO TAKE A VICTORY LAP ON THAT.
02:27:49THINK ABOUT THAT -- YOU WENT
02:27:52AFTER THEM, AND YOU SEIZED $15
02:27:56BILLION IN BITCOIN FROM THE PRINCE GROUP, THE LARGEST FORFEITURE IN AMERICAN HISTORY.
02:28:00HOW DID YOU PULL THAT OFF?
02:28:01SEC. BESSENT: AGAIN, IT WAS A
02:28:05COMBINATION.
02:28:09OUR GROUP OF SOME OF THE MOST DEDICATED PEOPLE I HAVE EVER
02:28:11SEEN SINCE WE IMPLEMENTED OPERATION ECONOMIC OUTCAST, WE
02:28:14HAVE PEOPLE WORKING FROM 6:00 IN THE MORNING UNTIL 10:00 AT
02:28:18NIGHT, AND IT IS FOR THE LOVE OF
02:28:19THEIR JOB.
02:28:22WE COMMEMORATED 9/11 ON MONDAY
02:28:25WITH THIS GROUP, AND THEY WERE
02:28:29ENABLED THEN TO MAKE SURE THAT NOTHING LIKE THAT EVER HAPPENS
02:28:33AGAIN, AND I CAN TELL YOU THAT THEY NEVER STOP WORKING ON THIS.
02:28:36REP. MCCLAIN: DO ME A FAVOR,
02:28:39TELL THEM THANK YOU BECAUSE WE
02:28:43APPRECIATE IT AND WE APPRECIATE EVERY DOLLAR THAT YOU KEEP IN OUR POCKET.
02:28:47CHAIR: THE GENTLEWOMAN'S TIME IS EXPIRED.
02:28:49SEC. BESSENT: THEY DON'T GET THE
02:28:53THANKS THEY DESERVE.
02:28:54REP. GARCIA: LESS THAN TWO YEARS
02:29:00AFTER THE TRUMP ADMINISTRATION TOOK OFFICE, WE ARE LOOKING AT HIGHER PRICES AND MORE
02:29:04UNCERTAINTY IN OUR ECONOMY THAN WE HAVE FACED IN DECADES.
02:29:08OUR COUNTRY HAS BEEN FORCED INTO A NEW WAR IN THE MIDDLE EAST
02:29:11STARTLED BUT -- STARTED BY
02:29:13DONALD TRUMP THAT IS NOW HURTING
02:29:17MIND AND EVERYONE ELSE'S DISTRICT. GAS PRICES HAVE BEEN UP NEARLY
02:29:2250% NATIONWIDE IN THE PAST SIX MONTHS AND THERE IS NO END IN SIGHT.
02:29:26SAME FOR DIESEL. THIS ADMINISTRATION HAS SHOWN NO ABILITY TO GET US OUT OF THIS
02:29:30RECKLESS WAR THAT IT STARTED,
02:29:33AND IT IS EVERYDAY AMERICANS WHO ARE PAYING THE PRICE.
02:29:37THE ADMINISTRATION HAS NO REAL
02:29:39PLAN, IT SEEMS, TO END THIS WAR.
02:29:42YOUR ECONOMIC D-DAY HAS DONE LITTLE TO EFFECT ANY CHANGE IN
02:29:45THIS CONFLICT. INSTEAD OF TRULY ISOLATING IRAN
02:29:49ECONOMICALLY BY CUTTING OFF ITS
02:29:51TOP TRADING PARTNER, CHINA, YOU HAVE USED SANCTIONS TO TARGET
02:29:55ITS HERITAGE AND NATIONALITY.
02:29:58THE OFFICE OF FOREIGN ASSETS
02:29:59CONTROL RECENTLY SUSPENDED IRAN
02:30:04GENERAL LICENSE G, WHICH ALLOWS IRANIAN CITIZENS TO TAKE
02:30:07ENTRANCE EXAMS LIKE THE LAW
02:30:10SCHOOL ENTRANCE EXAM, THE GRE,
02:30:12FOR GRADUATE STUDENTS, AND A
02:30:16NUMBER OF OTHERS. DO YOU TRULY THINK THIS WILL
02:30:17AFFECT THE WAR, MR. SECRETARY,
02:30:21OR IS THIS JUST ANOTHER
02:30:23XENOPHOBIC POLICY FROM THIS ADMINISTRATION AIMED AT DISENFRANCHISING RELIGIOUS
02:30:27MINORITIES AND IMMIGRANTS IN THIS COUNTRY?
02:30:29SEC. BESSENT: DO YOU ACTUALLY
02:30:32BELIEVE THAT TAKING THE SAT WILL EMPOWER PEOPLE WHO ARE BEING
02:30:35STARVED BY THEIR REGIME IS THAT
02:30:38REGIME GIVES BILLIONS TO THEIR PROXIES RATHER THAN FUNDING ITS PEOPLE?
02:30:42REP. GARCIA: MY QUESTION TO YOU
02:30:45-- DO YOU THINK THIS IS A POLICY
02:30:47AIMED AT THE WAR AND THINGS THAT
02:30:52ARE GOING ON OR JUST ANOTHER ATTACK AT RELIGIOUS MINORITIES
02:30:56AND IMMIGRANTS?
02:30:57SEC. BESSENT: I WOULD SAY THAT
02:31:01IS COMPLETELY SPECIOUS CHARGE.
02:31:02REP. GARCIA: OH, IT IS?
02:31:06WE GOT A CALL FROM SOMEONE JUST NOT ALLOWED TO TAKE THE LSAT,
02:31:09AND THEY WOULD TOTALLY DISAGREE WITH YOU, SIR. INSTEAD, IT DECREASED CREDITS
02:31:14ANYONE -- IT EXCLUDES ANYONE
02:31:16WITH IRANIAN HERITAGE, INCLUDING IRANIAN AMERICANS.
02:31:20IT WILL ALSO HURT OUR COMMUNITIES BECAUSE THERE ARE SO
02:31:23MANY PEOPLE OF IRANIAN CONSENT -- IRANIAN DESCENT THAT ARE
02:31:29HEAVILY REPRESENTED IN TECHNOLOGY AND BUSINESS. WITH NO STRATEGY OR REGARD FOR
02:31:32HOW THIS AFFECTS AMERICANS, DONALD TRUMP AND YOU HAVE THRUST
02:31:35US INTO A MESSY WAR IN IRAN. WE HAVE LOST THE TRUST OF THE
02:31:39AMERICAN PEOPLE AND MADE A
02:31:42MOCKERY OF OUR COUNTRY'S REPUTATION ON THE GLOBAL STAGE.
02:31:45YOU PERSONALLY SAID ONE OF THE ADMINISTRATION'S PRIMARY FOREIGN
02:31:49POLICY PRIORITIES IS MAINTAINING STRONG RELATIONSHIPS WITHIN THE
02:31:53WESTERN HEMISPHERE. INSTEAD, WE ARE AT ODDS WITH THE
02:31:57SECOND-LARGEST ECONOMY IN NORTH AMERICA AND OUR SECOND LARGEST TRADING PARTNER BECAUSE OF HOW
02:32:01THIS ADMINISTRATION HAS TREATED THEM.
02:32:02IN THE GREATER HOUSTON AREA,
02:32:06CANADA REPRESENTS A $12 BILLION
02:32:10TRADE RELATIONSHIP, SO HOW DOES
02:32:11A TRADE WAR WITH ONE OF OUR CLOSEST ALLIES HELP THE AMERICAN PEOPLE?
02:32:15SEC. BESSENT: FIRST OF ALL, IT
02:32:19WAS PRIME MINISTER CARNEY WHO SAID WE ARE AT WAR. REP. GARCIA: THE QUESTION IS HOW
02:32:23DOES A TRADE WAR WITH ONE OF OUR CLOSEST ALLIES HELP THE AMERICAN PEOPLE?
02:32:27SEC. BESSENT: THE TERMS OF TRADE
02:32:30THE CANADIENS HAVE RECEIVED FOR YEARS HAVE BEEN UNBALANCED AND
02:32:33IMBALANCED, AND TRYING TO BRING THEM BACK --
02:32:35REP. GARCIA: HOW DOES THAT HELP THE AMERICAN PEOPLE?
02:32:38SEC. BESSENT: THAT WILL HELP THE
02:32:41AMERICAN PEOPLE AS WE HAVE BETTER TERMS OF TRADE THAT THERE WILL BE MORE JOBS.
02:32:45WE JUST SAW A JAPANESE BREWER ANNOUNCED THAT THEY WERE
02:32:49RELOCATING INTO THE U.S. THAT HELPS THE AMERICAN PEOPLE.
02:32:53REP. GARCIA: SO, THAT IS ONE EXAMPLE.
02:32:56SEC. BESSENT: THERE ARE MANY
02:33:02EXAMPLES. REP. GARCIA: WOULD YOU SEND ME A LIST THEN?
02:33:03SEC. BESSENT: WITH PLEASURE.
02:33:07YOU ARE FROM TEXAS, AND I WOULD REMIND YOU THAT THE TEXAS
02:33:11ECONOMY IS BIGGER THAN THE CANADA ECONOMY. REP. GARCIA: I KNOW THAT.
02:33:15DO YOU HAVE AN END GOAL? CAN YOU LAY OUT A BETTER
02:33:19SCENARIO FOR THE AMERICAN PEOPLE THAT FREE TRADE WITH OUR
02:33:23NEIGHBORS? SEC. BESSENT: FREE TRADE HAS NOT
02:33:25ALWAYS BEEN FAIR TRADE.
02:33:28IF CANADA IMPORTS STEEL FROM OVERSEAS AND IT GETS BACK TOWARD INTO U.S. MARKETS, IF THEY TRY
02:33:32TO DO THAT WITH CHINESE EV'S
02:33:35THAT, AGAIN, WE WANT FAIR TRADE, REPRESENTATIVE.
02:33:39REP. GARCIA: YOU THINK THE FREE
02:33:43TRADE AGREEMENT THAT EVEN DONALD TRUMP APPROVED THE LAST TIME WAS NOT FAIR?
02:33:46SEC. BESSENT: AGAIN, WE HAVE
02:33:49SEEN MANY THINGS. WHY DON'T YOU CHECK WITH OUR
02:33:53WISCONSIN DAIRY FARMERS -- REP. GARCIA: AM ALSO CONCERNED
02:33:57ABOUT BEEF FARMERS IN TEXAS AND THE TRADE POLICIES THAT IMPACT THEM.
02:34:00SEC. BESSENT: IT HAS NOT IMPACTED --
02:34:04CHAIR: THE GENTLELADY'S TIME HAS EXPIRED.
02:34:08I KNOW RECOGNIZE
02:34:15I NOW RECOGNIZE MYSELF FOR FIVE MINUTES. THANK YOU FOR BEING HERE TODAY, MR. SECRETARY. THIS COMMITTEE'S LONG HAD
02:34:19CONCERNS THAT AN OUTBOUND INVESTMENT SCREENING REGIME WOULD PROVE OVERLY BROAD, VAGUE, MAYBE EVEN UNWORKABLE. SO I KNOW YOU CAN'T REALLY GET
02:34:22INTO DETAILS, BUT AS TREASURY WRITES THE UPDATED RULE, CAN YOU ASSURE US THAT IT WILL BE NARROWLY TAILORED AND SUFFICIENTLY CLEAR SO THAT
02:34:25INVESTORS HAVE BRIGHT LINE
02:34:31STANDARDS AND CAN EASILY UNDERSTAND THEIR OBLIGATIONS
02:34:34UNDER THESE --
02:34:36SEC. BESSENT: YES, SIR, WE HAVE
02:34:40ABOUT 18 MONTHS OF DEALING WITH THE OUTBOUND AND NOW AS WE PERFECT THE COINS ACT THAT WE
02:34:43WILL MAKE SURE THAT THE ALL
02:34:45OUTBOUND AND POTENTIAL OUTBOUND
02:35:01INVESTORS KNOW THEIR DUTIES, THEIR OBLIGATIONS, AND ADHERE TO THEM. THANK YOU, MR. SECRETARY. AS CHAIRMAN HILL NOTED EARLIER,
02:35:04IT WAS OUTRAGEOUS WHEN THE BIDEN ADMINISTRATION INCREASED THE WEIGHT OF CHINA'S RMB IN THE INTERNATIONAL MONETARY MONETARY FUND'S SDR BASKET.
02:35:08I HAVE LEGISLATION THAT WOULD OPPOSE ANY SUCH INCREASE UNTIL
02:35:09CHINA STARTS PLAYING BY THE
02:35:27RULES. CAN YOU COMMIT TO OPPOSING ANY INCREASE FOR THE RMB IN THE NEXT SDR BASKET REVIEW?
02:35:30SEC. BESSENT: I WILL COMMIT TO WORKING CLOSELY WITH YOU AND YOUR STAFF ON THAT. >> THANK YOU, MR. SECRETARY.
02:35:34YOU KNOW, A LOT OF THE POLICIES OF THIS ADMINISTRATION, I WISH YOU GREAT SUCCESS IN BRINGING CHINA INTO THE THINGS THEY'VE
02:35:38FRANKLY ALREADY AGREED TO DO. I MEAN, THE TRADE POLICIES THAT PEOPLE COMPLAIN ABOUT. I WAS IN MANUFACTURING BEFORE I CAME TO CONGRESS, AND WE WEREN'T
02:35:42COMPETING AGAINST OTHER COMPANIES. WE WERE COMPETING AGAINST A FOREIGN GOVERNMENT THAT HAD DECIDED THEY WOULD OWN AND DOMINATE OTHER INDUSTRIES.
02:35:45IT WAS DISADVANTAGING AMERICAN
02:35:53COMPANIES. SO, FRANKLY, THE TRUMP ADMINISTRATION IS TAKING AIM AT, YOU KNOW, WHY WOULD WE, WHY
02:35:56WOULD WE CONFRONT PEOPLE LIKE CHINA? WELL, BECAUSE THEY'RE TAKING
02:35:58AMERICA FOR GRANTED.
02:36:09THEY'RE ASSUMING XI JINPING IS GOING TO BE IN CHARGE IN CHINA LONGER THAN PRESIDENT TRUMP IS GOING TO MAINTAIN THE RESOLVE,
02:36:13NOT JUST IN HIS ADMINISTRATION, BUT GOING FORWARD TO COUNTER CHINA.
02:36:15CHINA COMMITTED TO BE A MARKET
02:36:18ECONOMY IN THE WORLD TRADE ORGANIZATION AS PART OF THEIR ACCEPTANCE INTO THE WORLD TRADE ORGANIZATION. IS CHINA A MARKET ECONOMY, MR.
02:36:22SECRETARY? NO, SIR.
02:36:27-- SEC. BESSENT: NO, SIR.
02:36:31AND AT THE G20 IN ASHEVILLE, WE HAD A COMMUNIQUE DRAFTED THAT CRITICIZED NON-MARKET ECONOMIES,
02:36:33AND CHINA WOULD NOT SIGN ON TO THAT.
02:36:37AND SO I ISSUED A CHERISHED
02:36:41STATEMENT, SO 19-1. AND IF YOU CAN IMAGINE GETTING ALL THESE COUNTRIES FROM AROUND
02:36:44THE WORLD TO AGREE TO THAT,
02:36:48CHINA WAS A LONE HOLDOUT.
02:36:53I THINK THEY'VE ANSWERED THE QUESTION FOR YOU. REP. DAVIDSON: THANK YOU, MR.
02:36:57SECRETARY. THAT WAS WELL PLAYED, AS ARE SO MANY OTHER THINGS THAT YOU'VE HAD INITIATIVES ON. I WANT TO HIGHLIGHT THE SCAM OPERATIONS.
02:37:01AND WHEN YOU LOOK AT, YOU KNOW, THE ILLICIT FINANCE, WE CERTAINLY HAVE TOOLS IN PLACE TO GATHER FINANCIAL INTELLIGENCE. IT'S ALWAYS SUPPOSED TO BE WITH
02:37:05DEFERENCE TO OUR CONSTITUTIONAL SAFEGUARDS FOR PRIVACY, SPEECH.
02:37:09WE'VE SEEN DEBANKING AND WEAPONIZED GOVERNMENT UNDER
02:37:13PREVIOUS ADMINISTRATIONS, AND
02:37:17YOU'VE RESTORED UNDER THIS ADMINISTRATION SANITY AND COMMON
02:37:21SENSE IN MANY WAYS THERE.
02:37:43SO I GUESS HOW DO YOU VIEW BALANCING OUR CONSTITUTIONAL SAFEGUARDS WITH THE NEED TO BE EFFECTIVE AT SHUTTING DOWN THESE
02:37:45TRANSNATIONAL ORGANIZATIONS?
02:37:48SEC. BESSENT: I THINK THE THE
02:37:51SCAMMERS COULD BE DIVIDED REALLY
02:37:55INTO THREE CATEGORIES -- DOMESTIC, AND SO WE WORK AT
02:37:57THOSE EVERY DAY, BUT MANY OF
02:38:01THEM ARE U.S. CITIZENS AND WE ADHERE TO THEIR RIGHTS. BUT LAW ENFORCEMENT IS VERY VIGOROUS IN GOING AFTER THEM, STATE ACTORS AS IN NORTH KOREA
02:38:05AND THEN PRIVATE SECTOR ACTORS, MANY, MANY OF THEM IN SOUTHEAST
02:38:06ASIA, AND WE HAVE COMMITTED
02:38:10SUBSTANTIAL RESOURCES, AND
02:38:11AGAIN, I WANT TO COMPLIMENT OUR
02:38:17INTERAGENCY PARTNERS, WHETHER IT'S THE FBI OR HOMELAND, ON THAT. YEAH, THANK YOU, AND SOME GREAT WINS THERE, I THINK IN PARTICULAR SHUTTING DOWN THE
02:38:21PRINCE GROUP. THESE KINDS OF OPERATIONS ARE SUBSTANTIAL PORTIONS OF SOUTHEAST ASIAN STATE ACTOR ECONOMIES, SO THERE'S CERTAINLY
02:38:24AN INTERSECTION THERE. AND IT WAS JUST OVER IN FOREIGN AFFAIRS TALKING ABOUT YOUR WORK
02:38:28WITH THE STATE DEPARTMENT ON THOSE INITIATIVES.
02:38:31AND SO I APPLAUD THAT.
02:38:32ANOTHER AREA THAT WE'RE SEEING,
02:38:35YOU KNOW, THESE THINGS COME TO A
02:38:39HEAD IS WITH DEFENSE PRODUCTION ACT. TREASURY WORKING WITH OTHER DEPARTMENTS.
02:38:42COINS TOUCHES ON THAT.
02:38:45AND AS WE USE THE DEFENSE PRODUCTION ACT, WE'RE WORKING TO REAUTHORIZE AND MODERNIZE THAT.
02:38:48CAN YOU COMMIT TO WORK WITH US
02:38:49TO GET THAT REAUTHORIZED?
02:38:53YES, SIR, AND MY STAFF WOULD LIKE TO ENGAGE WITH YOU ON THAT,
02:38:57ESPECIALLY IN THE CFIUS AREA.
02:39:00REP. DAVIDSON: THANK YOU, MR. SECRETARY.
02:39:04MY TIME HAS EXPIRED, AND I NOW RECOGNIZE THE GENTLEWOMAN FROM
02:39:07GEORGIA, MS. WILLIAMS, FOR FIVE
02:39:08MINUTES.
02:39:13REP. WILLIAMS: THANK YOU, MR. CHAIRMAN, AND THANK YOU, RANKING MEMBER WATERS, FOR CONVENING THIS HEARING TODAY.
02:39:17AND THANK YOU, MR. SECRETARY, FOR BEING HERE. MR. SECRETARY, LAST YEAR BEFORE THIS COMMITTEE YOU TOLD US THAT THE CORE COMPONENTS OF THE TRUMP
02:39:20ECONOMIC AGENDA ARE TRADE, TAX CUTS, AND DEREGULATION, AND THAT THIS COMBINATION WOULD RAISE REAL INCOMES FOR FAMILIES AND
02:39:24RESHORE JOBS. THIS SUMMER, YOU WENT EVEN
02:39:28FURTHER ON CNBC DECLARING THE
02:39:29K-SHAPED ECONOMY IS OVER.
02:39:40I'M NOT HERE FOR TALKING POINTS, SPIN, OR CLEVER FRAMING OF
02:39:43NUMBERS THAT DON'T REALLY HOLD UP UNDER A MICROSCOPE OR IN THE POCKETS OF THE AMERICAN PEOPLE. I'M HERE TO ASK QUESTIONS FOR THE FAMILIES THAT ARE STILL
02:39:47STRUGGLING IN MY DISTRICT TO KEEP UP WITH THE BASIC COST OF LIVING DESPITE YOUR PROCLAMATIONS IN FRONT OF G20
02:39:50FINANCE MINISTERS AND ON CNBC.
02:39:52THEY DESERVE HONEST ANSWERS, AND THAT'S WHAT MY QUESTIONS AIM TO
02:39:55GET TO.
02:39:59THEY DON'T NEED A TRUMP-BESSENT REBRAND ON THEIR BUDGET. THEY NEED AN HONEST ACCOUNTING
02:40:03FROM YOU, MR. SECRETARY.
02:40:07SO ACCORDING TO THE BUREAU OF LABOR STATISTICS, REAL HOURLY WAGES FELL 0.3% OVER THE PAST 12 MONTHS.
02:40:11MR. SECRETARY, DO YOU DISPUTE THAT NUMBER? YES OR NO?
02:40:15SEC. BESSENT: I DISPUTE IT, YES.
02:40:18REP. WILLIAMS: OK. ACCORDING TO THE BUREAU OF LABOR
02:40:21STATISTICS, WAGE GROWTH HAS SLOWED TO 3.1% OVER THE YEAR,
02:40:23THE SLOWEST PACE IN MORE THAN
02:40:27FIVE YEARS, AND DOWN FROM 3.7%
02:40:31IN FEBRUARY. DO YOU DISPUTE THAT NUMBER? YES OR NO?
02:40:34SEC. BESSENT: I BELIEVE MEDIUM
02:40:38WAGE GROWTH --
02:40:42REP. WILLIAMS: YES OR NO.
02:40:47SEC. BESSENT: THE NUMBER I'VE
02:40:50SEEN FOR MEDIAN AGE -- REP. WILLIAMS: WELL, MR.
02:40:53SECRETARY, I'M GOING TO RECLAIM MY TIME. I'M GOING TO RECLAIM MY TIME
02:40:55BECAUSE THESE NUMBERS ARE FROM
02:40:59OUR AGENCY, THE U.S. BUREAU OF LABOR STATISTICS, SO IT'S NOT MY
02:41:01NUMBERS, IT'S THE NUMBERS FROM
02:41:06THE U.S. GOVERNMENT. AND WAGES ARE SLOWING AT THE EXACT MOMENT THE PRICES ARE RISING, AND THAT IS NOT A POLICY THAT IS WORKING.
02:41:10THAT IS A POLICY FAILING THE PEOPLE THAT IS SUPPOSED TO HELP. FAMILIES IN THIS COUNTRY ARE NOT ASKING FOR TALKING POINTS. THEY'RE ASKING WHY THINGS ARE HARDER TO BUY.
02:41:14THEY'RE ASKING WHY THEY CONTINUE TO HAVE MORE MONTH THAN MONEY. SO FOR MY FOLKS AT HOME WHO MAY NOT BE FAMILIAR WITH THE TERM A K-SHAPED ECONOMY, IT'S TWO ARMS
02:41:18IN A GRAPH THAT LOOK LIKE A K. ONE LINE GOES UP, REPRESENTING WEALTHY AMERICANS AND THE HIGH
02:41:22EARNERS WHO ARE GAINING GROUND, AND THE OTHER LINE UNFORTUNATELY
02:41:25IS GOING DOWN, REPRESENTING SLOW GROWTH FOR LOWER AND MIDDLE
02:41:28INCOME WORKERS.
02:41:30ACCORDING TO THE FEDERAL RESERVE
02:41:34BANK OF ATLANTA'S WAGE GROWTH TRACKER, THE TOP QUARTER OF
02:41:37EARNERS HAS SEEN WAGE GROWTH OF 3.9% OVER THE PAST YEAR COMPARED TO 3.6% FOR THE BOTTOM QUARTER.
02:41:40AGAIN, NOT MY NUMBERS. THAT IS FROM THE FEDERAL RESERVE BANK OF ATLANTA'S WAGE GROWTH
02:41:43TRACKER.
02:41:45NOT MY NUMBERS, MR. SECRETARY.
02:41:50NO MATTER HOW MUCH YOU WANT --
02:41:50SEC. BESSENT: IT WAS FOUR POINT
02:41:55--
02:41:57REP. WILLIAMS: MR. SECRETARY,
02:42:01THE TIME IS MINE. THAT GAP HAS NOT CLOSED A SINGLE MONTH OF 2026, NOT ONE SINGLE MONTH. AGAIN, NOT MY NUMBERS, MR. SECRETARY. SO MR. SECRETARY, GIVEN THAT
02:42:05DATA, DO YOU THINK YOUR CLAIM THAT THE K-SHAPED ECONOMY IS OVER WAS PREMATURE?
02:42:07SEC. BESSENT: AGAIN, FROM THE --
02:42:14REP. WILLIAMS: DO YOU THINK THAT
02:42:18YOUR PROCLAMATION THAT THE
02:42:26K-SHAPED ECONOMY IS OVER WAS PREMATURE? SEC. BESSENT: THE DATA I HAVE
02:42:30FROM THE SAME AGENCIES, NOT THE FEDERAL RESERVE OF ATLANTA, IS 4.7% FOR THE BOTTOM 25%.
02:42:33REP. WILLIAMS: SO THE FEDERAL
02:42:38RESERVE BANK OF ATLANTA IS INCORRECT? I KNOW YOU NOTICED EARLIER IN YOUR OPENING STATEMENT YOU QUOTED THEM.
02:42:42SO DO YOU NOT WANT TO BELIEVE
02:42:43THEM.
02:42:49SEC. BESSENT: YOU DON'T WANT ME
02:42:52TO, YOU WANT TO AGREE WITH THEM THAT WE'RE HAVING A BOOMING THIRD QUARTER OVER 4%?
02:42:55REP. WILLIAMS: WELL, MR. SECRETARY, YOU DON'T SEEM TO
02:42:57AGREE WITH ALL OF THEIR DATA. IF YOU'RE WATCHING THIS AT HOME AND YOU'RE WONDERING WHY YOUR
02:43:01PAYCHECK DOESN'T STRETCH AS FAR AS IT USED TO, THE NUMBERS YOU JUST HEARD ARE NOT A COINCIDENCE, Y'ALL, AND NOT TO YOU EITHER, MR. SECRETARY.
02:43:05THIS ADMINISTRATION WAS TOLD ON THE RECORD THAT ITS DATA SHOWS
02:43:07WAGES FALLING BEHIND INFLATION,
02:43:09WAGE GROWTH AT A FIVE-YEAR LOW, AND NO CLOSING OF THE GAP BETWEEN THE TOP AND BOTTOM.
02:43:13AND INSTEAD OF A PLAN TO FIX IT, WE GOT A TRUMP REBRAND. AT THE END OF YOUR WRITTEN
02:43:16TESTIMONY LAST YEAR, MR.
02:43:19SECRETARY, YOU SAID, TOGETHER WE CAN BUILD A STRONGER, SAFER, AND MORE PROSPEROUS AMERICA, AND I'M
02:43:23ALL FOR THAT. I HOPE YOU CAN PIVOT BACK TO
02:43:25THAT COMMITMENT, TO THIS COMMITTEE, AND TO THE MILLIONS OF AMERICANS WHO HAVE ENTRUSTED
02:43:29THIS ADMINISTRATION WITH THEIR ECONOMIC FUTURE. THANK YOU, MR. CHAIRMAN, AND I
02:43:33YIELD BACK.
02:43:36>> THANK YOU.
02:43:41I NOW RECOGNIZE THE CHAIRMAN OF OUR SUBCOMMITTEE ON DIGITAL ASSETS, MR. STEIL OF WISCONSIN,
02:43:44FOR FIVE MINUTES.
02:43:51REP. STEIL: THANK YOU VERY MUCH, MR. CHAIRMAN. SECRETARY, THANK YOU FOR BEING HERE WITH US TODAY. IN PARTICULAR, I APPRECIATE ALL
02:43:55YOUR WORK IN MAKING THE UNITED STATES THE GOLD STANDARD IN THE DIGITAL ASSET ERA. HUGE VOTE COMING UP IN THE
02:43:58SENATE IN THE NEAR FUTURE ON
02:44:06CLARITY, A BILL THAT WE WORKED. HARD ON IN THIS COMMITTEE AND APPRECIATE ALL YOUR SUPPORT OF THAT.
02:44:09WE'RE ALL OPTIMISTIC THE SENATE IS IN A POSITION TO MOVE FORWARD. I'M GOING TO ALSO LOOK AT GENIUS, WHICH WAS SIGNED INTO LAW NOW OVER A YEAR AGO.
02:44:13WE'RE APPROACHING THE EFFECTIVE
02:44:17DATE, JANUARY 18. YOU AND YOUR TEAM AT TREASURY HAVE BEEN DOING A GREAT JOB GETTING THE RULES AND REGULATIONS IN ORDER AND IN PLACE.
02:44:21CAN YOU GIVE US AN UPDATE ON
02:44:22WHERE WE'RE AT IN THE RULEMAKING
02:44:28PROCESS AND OUR ABILITY TO BE ABLE TO HIT THE GROUND RUNNING COME JANUARY?
02:44:30SEC. BESSENT: YES, SIR, I AM CONFIDENT THAT WE WILL HAVE THAT
02:44:33DONE. DURING THE RULEMAKING PROCESS, WE HAVE HEARD FROM THE TENS OF
02:44:37THOUSANDS OF INTERESTED PARTIES,
02:44:41BOTH FROM THE PUBLIC, FROM
02:44:42STAKEHOLDERS, FROM COMMUNITY
02:44:56BANKS, FROM THE DIGITAL ASSET COMPANIES, AND WE ARE WORKING ON THE RULEMAKING TO CODIFY THE CONGRESSIONAL INTENT.
02:44:59APPRECIATE THAT. REP. STEIL: LET ME SHIFT GEARS. YOU GAVE A SPEECH IN JULY LOOKING AT FLOWS OF, IN
02:45:03PARTICULAR, FOREIGN FUNDS THAT
02:45:07WERE IMPACTING THE BROADER U.S.
02:45:10POLITICAL ECOSYSTEM.
02:45:13YOU REFERENCED HOW SOME OF THOSE FUNDS MAY BE FLOWING THROUGH
02:45:15NONPROFITS AS IT RELATES, AND I THINK YOUR TERM, POLITICAL TERRORISM.
02:45:19THIS IS SOMETHING THAT WE'VE BEEN LOOKING AT SINCE GOING BACK 25 YEARS AGO TO THE ORIGINAL 9/11 AND THE ACTIONS THAT WERE TAKEN AS WE LOOKED AT HOW
02:45:23FOREIGN FUNDS WERE FLOWING. IN PARTICULAR, IN MY WORK AS CHAIR OF THE ADMINISTRATION
02:45:27COMMITTEE, WE'VE BEEN LOOKING AT
02:45:37HOW NONPROFITS MAY BE MISUSING THEIR PROTECTED STATUS TO MOVE FUNDS FROM FOREIGN ACTORS AND HAVE AN IMPACT IN OUR POLITICAL DISCOURSE.
02:45:41YOU'VE ENGAGED THE POWER OF TREASURY TO EXPLORE AND EXAMINE
02:45:43THAT.
02:45:53I'VE BEEN VERY CONCERNED.
02:45:59CONCERNED THAT FUNDS HAVE FLOWED IN FROM FOREIGN ACTORS INTO SOME 501C TAX EXEMPT ENTITIES IN THE UNITED STATES WOULD THEN FLOW THOSE FUNDS THROUGH ADDITIONAL
02:46:03501CS TO SHELTER AND SHIELD THE ORIGINAL DONOR OF THOSE FUNDS. CAN YOU COMMENT ON THE WORK THAT YOU'VE BEEN ENGAGED AT AT
02:46:06TREASURY TO ADDRESS THIS
02:46:07CONCERN?
02:46:11SEC. BESSENT: YES, I CAN'T
02:46:16DIRECT THE PARTICULAR AUDITS OR
02:46:38EXAMINATIONS, BUT WHAT WE HAVE DONE IS THE WORK WITH THE PRESIDENT'S THE EXECUTIVE ORDER
02:46:4113224, AND THAT.
02:46:51SO AS YOU SAID, THAT GOES BACK TO THE ORIGINAL VIOLENT ACTS OF 2001, AND WE ARE ACTIVELY LOOKING TO SEE THAT WHETHER
02:46:55THERE IS FOREIGN INFLUENCE HERE, WHETHER WE SAW IT TODAY, I HAVE NO OPINION. I THINK PEOPLE CAN DECIDE FOR THEMSELVES.
02:46:58AND BEING A NONPROFIT IS A PRIVILEGE, AND ANYONE WHO VIOLATES THAT PRIVILEGE WILL
02:47:02LOSE THAT STATUS.
02:47:10REP. STEIL: YEAH, I THINK YOUR COMMENTS IN YOUR SPEECH ABOUT MAKING SURE THAT NONPROFITS
02:47:14BOARD OF DIRECTORS NOT ONLY KNOW THE IDENTITY OF THE DONORS, BUT ALSO KNOW THE IDENTITY OF THEIR GRANTEES IS REALLY IMPORTANT IN
02:47:17A PERIOD OF TIME WHERE WE KNOW
02:47:39FOREIGN ACTORS ARE INTERESTED. IN ALTERING OUR POLITICAL DISCOURSE HERE IN THE UNITED STATES IN THE LEGAL LOOPHOLE THAT ALLOWS A 501C TO RECEIVE
02:47:43FOREIGN FUNDS, OFTEN OUR NONPROFITS ARE FOR THE ALTRUISTIC PURPOSE FOR WHICH THEY WERE CREATED.
02:47:45THE CONCERN, OF COURSE, IS THAT
02:47:49THEY'RE BEING EXPLOITED BY FOREIGN ACTORS.
02:47:52THOSE FUNDS COME INTO A 501C. THEY'RE BEING TRANSFERRED TO OTHERS, AND THEY'RE ATTEMPTING TO USE THOSE FUNDS TO THE
02:47:56ORIGINAL DONORS, INTERNATIONAL ACTORS' INTENT. SO I APPRECIATE YOUR WORK ON THIS. I APPRECIATE THE SPEECH YOU GAVE ON THIS TOPIC IN JULY.
02:47:59I APPRECIATE ALL THE WORK THAT'S GOING ON IN TREASURY AND IN PARTICULAR, GOING BACK TO MY FIRST TOPIC, OPTIMISTIC THAT WE SEE A POSITIVE VOTE IN THE
02:48:03UNITED STATES SENATE TO MOVE
02:48:04FORWARD ON CLARITY.
02:48:10IT'S SO IMPORTANT THAT WE SEE US, THE UNITED STATES, BE THE LEADER IN THE DIGITAL ASSET
02:48:12SPACE.
02:48:16THANK YOU FOR BEING HERE.
02:48:17REP. STEIL: --
02:48:20SEC. BESSENT: THANK YOU, CONGRESSMAN.
02:48:23REP. STEIL: MR. CHAIRMAN, I YIELD BACK.
02:48:25>> THANK YOU, MR. STILE. I NOW RECOGNIZE THE RANKING MEMBER OF OUR SUBCOMMITTEE ON
02:48:29FINANCIAL INSTITUTIONS, DR. FOSTER OF ILLINOIS, FOR FIVE MINUTES.
02:48:33>> HI THERE. ARE YOU HAVING FUN YET? SEC. BESSENT: IT STARTED OFF
02:48:36GREAT. IT'S GOTTEN BETTER. >> I'D LIKE TO USE, I GUESS, A
02:48:39FEW MOMENTS ON, I GUESS, ROUND 3 OF THE MANUFACTURER AND THE FINANCE PROFESSOR. IT WAS THE FIRST TIME YOU SHOWED
02:48:43UP IN FRONT OF OUR COMMITTEE, I PRESENTED A GRAPHIC WITH THE WELL-KNOWN INFORMATION THAT WHENEVER FOR LONGER THAN YOU AND I HAVE BEEN ALIVE, EVERY TIME
02:48:47YOU PUT A REPUBLICAN IN THE WHITE HOUSE, MANUFACTURING EMPLOYMENT DECLINES.
02:48:49EVERY TIME YOU PUT A DEMOCRAT IN
02:48:52THE WHITE HOUSE, IT GOES UP, WITHOUT EXCEPTION. AND YOU, I GUESS, VOLUNTEERED DURING THAT HEARING THAT AS A FINANCE PROFESSOR YOU'D GIVE
02:48:56THAT AN F. NOW PRESIDENT TRUMP CAME INTO
02:48:59OFFICE PROMISING MILLIONS OF NEW MANUFACTURING JOBS WOULD BE
02:49:03RUSHING IN AS A RESPONSE TO HIS TARIFF POLICIES AND OTHER
02:49:04THINGS. SO WE'RE NOW JUST NEARLY TWO
02:49:08YEARS IN. AND SO FAR WE HAVE NOT SEEN MILLIONS OF NEW MANUFACTURING JOBS. IN FACT, MANUFACTURING
02:49:12EMPLOYMENT IS DOWN. LAST TIME I LOOKED, ABOUT 35,000
02:49:16JOBS.
02:49:27SO AS A PROFESSOR, WHAT GRADE WOULD YOU GIVE YOUR ADMINISTRATION ON RESTORING
02:49:31MILLIONS OF MANUFACTURING JOBS? SEC. BESSENT: CONGRESSMAN, I
02:49:34THINK YOU KNOW BETTER THAN THIS. SO THE LAST TWO YEARS OF THE BIDEN ADMINISTRATION, WE LOST 200,000 MANUFACTURING JOBS.
02:49:38REP. FOSTER: I'M NOT TALKING,
02:49:44I'M NOT TALKING, PLEASE --
02:49:46SEC. BESSENT: THIS IS REAL WORLD, AND IN THE REAL WORLD ONE
02:49:49HAS TO BUILD FACTORIES, AND WHAT
02:49:50WE'RE SEEING IS A MANUFACTURING
02:49:54-- SEC. BESSENT: --
02:49:58REP. FOSTER: I HAVE BUILT FACTORIES, OK.
02:50:02THERE ARE 600 PEOPLE IN A MANUFACTURING BUSINESS IN THE MIDWEST, AND OUR COMPANY HAS
02:50:04KEPT THOSE IN THE MIDWEST.
02:50:11SEC. BESSENT: YOU HAVE TO UNDERSTAND THAT WE HAVE ADDED 300,000 MANUFACTURING JOBS THIS
02:50:14YEAR.
02:50:16REP. FOSTER: THE NET NUMBER OF
02:50:23MANUFACTURING JOBS DOWN 35,000. THAT'S ALL RIGHT.
02:50:26I'M ALSO CONGRESS'S PET PHD PHYSICIST AND CHIP DESIGNER AND AI PROGRAMMER.
02:50:28WE KEEP ONE AROUND FOR CHUCKLES, I GUESS, AND I'M VERY GRATIFIED
02:50:32THAT AI IS NOW FINALLY BEING RECOGNIZED AS A SIGNIFICANT
02:50:37THREAT TO OUR ECONOMY BY SEEMINGLY EVERYONE BUT THE PRESIDENT. DO YOU AGREE WITH THE PRESIDENT
02:50:39THAT THE WHOLE THING IS SOME
02:50:44CHINESE HOAX, OR DO YOU REGARD, UH, AI AS A REAL THREAT TO OUR
02:50:48ECONOMY AND OUR AND OUR GOVERNMENT AND STABILITY?
02:50:52REP. FOSTER: -- SEC. BESSENT: I BELIEVE THAT AS
02:50:56THE PRESIDENT DOES, THAT THE AI IS THE MOST IMPORTANT TECHNOLOGY OF THIS CENTURY AND THAT WE MUST MAINTAIN US LEADERSHIP.
02:50:59AND I THINK IF YOU'RE A CHIP DESIGNER WHO'S THE GREATEST CHIP COMPANY IN THE WORLD, NVIDIA, THE PRESIDENT IS ALIGNED WITH JENSEN WONG ON THIS.
02:51:03REP. FOSTER: WELL, YES, THEY BOTH WANT TO MAKE MONEY BECAUSE OF THE POSITION THEY'RE IN.
02:51:06OK, LET'S TALK ABOUT THE MYTHOS. IT WAS COMPLETELY CHAOTIC,
02:51:10FRANKLY, YOU KNOW, THIS WAS NOT SOMETHING NEW. IF YOU ACTUALLY HAD PEOPLE IN CONTACT WITH THE TECHNICAL PEOPLE IN AI FIRMS, YOU'D KNOW
02:51:13THAT THE NEXT GENERATION AIS, THEIR CODING AND THEIR HACKING
02:51:17CAPABILITIES WERE OFF THE CHARTS, AND YOU'VE KNOWN IT MONTHS AHEAD OF TIME.
02:51:19INSTEAD, YOU HAD, WHEN IT BECAME
02:51:21PUBLIC, YOU HAD EARLY ACCESS TO MYTHOS GRANTED TO ONE OF THE
02:51:24GIANT BANKS IN THE COUNTRY. AND THEN, AS YOU SAID EARLIER IN
02:51:27YOUR TESTIMONY, YOU WENT DOWN
02:51:33THE CAPITALIZATION CHAIN, FIRST TO THE GIANT BANKS AND THEN THE MID-SIZED BANKS, AND AT THE
02:51:36VERY, VERY END, THE BANKS YOU WERE PROTECTING WERE THE SMALL LOCAL COMMUNITY BANKS. IS THAT YOUR PLAN GOING FORWARD?
02:51:40IS THAT WHAT'S GOING TO HAPPEN NEXT TIME AND THE TIME AFTER
02:51:43THAT, THAT THE SMALL BANKS ARE GOING TO BE LEFT DEFENSELESS FOR CYBER?
02:51:46SEC. BESSENT: WELL, AGAIN,
02:51:47THAT'S AN UNFAIR
02:51:51CHARACTERIZATION THAT WE USE THE
02:51:52STRENGTH AND THE CYBERSECURITY
02:51:57OF LARGE BANKS, AND WE MIGRATED THEIR KNOW-HOW BECAUSE THE SMALL BANKS AND THE COMMUNITY BANKS,
02:51:59WHO NO ONE HAS CHAMPIONED MORE
02:52:04THAN I HAVE --
02:52:05REP. FOSTER: OH, COME ON, THE
02:52:09NUMBER ONE THING THE COMMUNITY BANKS HAVE BEEN ASKING FOR WAS NO INTEREST ON STABLECOINS.
02:52:11THAT WAS THEIR NUMBER ONE ASK
02:52:15FOR THE LAST YEARS, AND WE'RE IN THE PROCESS OF GOING TO WORK AROUND.
02:52:17DON'T TELL ME ABOUT HOW MUCH YOU
02:52:23LOVE SMALL BANKS. SEC. BESSENT: I'VE MET WITH 500
02:52:26COMMUNITY BANKERS THIS YEAR. HOW MANY HAVE YOU MET WITH?
02:52:29REP. FOSTER: YOU GO TO BIG ROOMS FULL OF BANKERS, THEY COME TO ME
02:52:32INDIVIDUALLY, AND I TALK TO THEM IN MY DISTRICT.
02:52:34I THINK I HAVE A PLAN ON HOW
02:52:41WE'RE ACTUALLY, ACTUALLY GONNA HELP SMALL COMMUNITY BANKS ON
02:52:42CYBERSECURITY, AND HOW WE'RE
02:52:46ACTUALLY GOING TO HAVE A FAIR DISTRIBUTION OF CYBER DEFENSE THE NEXT TIME MYTHOS OR A SIMILAR THREAT COMES UP. AND ONE OF THE THINGS THAT
02:52:50REALLY CONCERNS ME IS THE SEEMING INABILITY OF YOUR ADMINISTRATION TO ATTRACT AND
02:52:53RETAIN PEOPLE WITH ANY TECHNICAL COMPETENCE. YOU KNOW, LEADING YOUR AI REPORT WAS YOUR NATIONAL DIRECTOR OF
02:52:57CYBERSECURITY, A GUY CALLED SHANE CHANCROSS, WHO HAS A BA IN
02:53:00INTERNATIONAL STUDIES AND HIS MAIN CREDENTIAL IS THAT HE WAS A LAWYER FOR THE REPUBLICAN NATIONAL COMMITTEE.
02:53:04YOUR SCIENCE ADVISOR HAS A DEGREE IN HELLENIC STUDIES AND
02:53:07POLY SCI, ALL RIGHT, AND HIS
02:53:10MAIN THING IS THAT HE WAS PETER THIEL'S CHIEF OF STAFF. AND WHEN I GO DOWN YOUR ORG
02:53:14CHART, HOW DO YOU EVEN DECIDE WHEN YOU'RE DECIDING ABOUT
02:53:18LETTING COUNTRIES HAVE ACCESS TO AI CHIPS, WHICH AI CHIPS ARE
02:53:22REALLY EVEN SIGNIFICANT FOR AI
02:53:23DEVELOPMENT?
02:53:28WELL, WE HAVE A VERY GOOD, GOOD
02:53:38HANDLE ON THE AI CHIP ALLOCATION, AND I WOULD DISPUTE. I THINK YOU DON'T KNOW ROBERT OPPENHEIMER WAS NOT A PHYSICIST.
02:53:42MAYBE YOU WERE HUNG UP ON DEGREES. >> THE GENTLEMAN'S TIME HAS EXPIRED.
02:53:46I NOW RECOGNIZE THE GENTLEWOMAN FROM CALIFORNIA, MS. KIM, FOR 5
02:53:47MINUTES.
02:53:55REP. KIM: THANK YOU, CHAIRMAN,
02:53:56AND SECRETARY BESSENT, GOOD TO
02:54:02SEE YOU AGAIN. THANK YOU FOR JOINING US. I WANT TO START BY THANKING YOU
02:54:06FOR YOUR GREAT WORK IN LAUNCHING THE TRUMP ACCOUNTS EARLIER THIS YEAR AND YOUR HARD WORK HAS
02:54:08ACTUALLY CREATED A LIFETIME OF
02:54:12OPPORTUNITY THAT, COMBINED WITH
02:54:15YOUR FINANCIAL LITERACY EFFORTS, WILL UPLIFT THE AMERICAN WORKING
02:54:17FAMILIES.
02:54:20AS WE CONSIDER EXTENDING THIS SUCCESSFUL PROGRAM, I'VE BEEN
02:54:24TRAVELING UP AND DOWN MY DISTRICT, AND PEOPLE ARE REALLY,
02:54:26REALLY EXCITED ABOUT THIS.
02:54:31SO I HAVE INTRODUCED SOME LEGISLATION, SEEDS ACT, TO
02:54:32CODIFY THIS.
02:54:36SO, WHAT WOULD BE EARLY FEEDBACK THAT YOU HAVE RECEIVED ON TRUMP ACCOUNTS AND ALSO YOUR THOUGHTS
02:54:40ON THE SEEDS ACT? I WOULD GREATLY APPRECIATE THAT. SEC. BESSENT: SO I THINK THE
02:54:43TRUMP ACCOUNTS, AS I'VE SAID MANY TIMES, ARE THE MOST IMPORTANT GOVERNMENT BENEFIT FOR YOUNG PEOPLE SINCE THE GI BILL.
02:54:47AS SOMEONE WHO HAS SPENT DECADES ADVOCATING FOR FINANCIAL
02:54:50LITERACY, I THINK THAT THIS WILL
02:55:01BE A REAL-TIME FINANCIAL LITERACY EXPERIMENT, AND I THINK THAT WE ARE GOING TO CREATE A GENERATION. A GENERATION OF SHAREHOLDERS, YOU KNOW, UNLIKE MANY PEOPLE,
02:55:05SOME IN THIS ROOM WHO HAD ADVOCATED FOR BABY BONDS, THIS
02:55:08IS GIVING EVERY AMERICAN A PIECE
02:55:14OF OUR GREAT CAPITAL MARKETS, OF
02:55:27OUR INNOVATION, AND MAKING THEM, YOU KNOW, REALIZE THE POWER OF COMPOUNDING AND WHAT WE'VE DONE AT TREASURY. WE HAVE BETWEEN 7 AND 8 MILLION
02:55:30FAMILIES WHO SIGNED UP THAT WE ANTICIPATE THAT WITHIN A MONTH
02:55:32WE WILL HAVE 70 MILLION. BECAUSE WE WILL GO TO AUTO
02:55:36ENROLL. KEEP IN MIND THAT HUGE NUMBERS
02:55:39OF THESE FAMILIES ARE MAKING
02:55:44LESS THAN $200,000, LESS THAN
02:55:45$100,000, AND HAD NO EXPOSURE TO
02:55:50THE EQUITY MARKET.
02:55:51REP. KIM: I TRULY BELIEVE THAT
02:55:59WE HAVE TO COUPLE THESE FINANCIAL LITERACY COURSES WITH TRUMP ACCOUNTS. SO HOPEFULLY EITHER INCORPORATING IT OR MANDATING
02:56:03THIS FINANCIAL LITERACY PROGRAM AND CONSTANTLY TALKING ABOUT TRUMP ACCOUNTS AT SCHOOLS WILL BE GREAT. WOULD YOU AGREE?
02:56:06SEC. BESSENT: YES, I COULDN'T AGREE MORE. IN THE SCHOOL SYSTEM AT
02:56:09TREASURY, WE'VE CREATED 15 LEARNING MODULES AND BOTH FOR
02:56:11CHILDREN, THE BENEFICIARIES OF
02:56:15THE ACCOUNT -- THERE'S A
02:56:21FOUR-YEAR-OLD, THERE'S A SIX-YEAR-OLD, BUT IMPORTANTLY, MANY OF THESE ARE FAMILIES WHO HAVE NEVER, MAYBE THE TERM WALL
02:56:24STREET, MAYBE THEY CLICK THROUGH .
02:56:29I THINK THEY'RE GOING TO HAVE A REAL INTEREST HERE.
02:56:30IT WILL BE SOMETHING THAT
02:56:38FAMILIES DO AROUND THE TABLE, AND I THINK THAT THIS IS A UNIQUE OPPORTUNITY TO BRING THE 38% OF HOUSEHOLDS WHO HAVE NO
02:56:42EQUITY EXPOSURE TO MAKE IT 100%. REP. KIM: AND I'LL JOIN YOU
02:56:45RIGHT THERE, KEEP ON TALKING
02:56:49ABOUT IT. SEC. BESSENT: AND HAVE AN OWNERSHIP NATION.
02:56:53REP. KIM: SO I WANT TO GO TO TALK ABOUT THE TAIWAN NONDISCRIMINATION ACT, WHICH IS
02:56:56MY BILL THAT WAS PASSED AS PART
02:56:57OF NDAA LAST YEAR AND THIS
02:57:01LEGISLATION DIRECTS THE IMF REPRESENTATIVE TO USE THE US VOICE AND VOTE TO SUPPORT TAIWAN'S MEMBERSHIP IN IMF.
02:57:04SO I JUST WANTED TO ASK, AS
02:57:09TAIWAN, WE'VE BEEN TALKING TO TAIWANESE GOVERNMENT OFFICIALS, AND AS THEY GET READY TO
02:57:12FORMALLY SUBMIT A REQUEST TO
02:57:19JOIN IMF, I HOPE U.S. WILL USE OUR VOICE TO SUPPORT THEIR PETITION TO JOIN OR ENCOURAGE THEM TO DO SO AS SOON AS
02:57:22POSSIBLE. SEC. BESSENT: WE'RE AWARE OF
02:57:26YOUR BILL. REP. KIM: GREAT. THANK YOU. AND AS CHAIRMAN, OUR FORMER
02:57:30CHAIRMAN MCHENRY OFTEN USED TO
02:57:32SAY ECONOMIC SECURITY IS NATIONAL SECURITY AND STRONG
02:57:36TAIWAN IS OUR BEST TOOLS TO.
02:57:39-- TO COUNTER CHINESE ECONOMIC
02:57:44COERCION. SO ANOTHER ASPECT OF CHINESE ECONOMIC ACTIVITY THAT CONCERNS ME IS THEIR USE OF STATE CORPORATION AND PREDATORY
02:57:47LENDING TO DOMINATE CRITICAL MINERAL SUPPLY CHAIN AND CONTROL
02:57:51ENERGY STRUCTURE. WE HAVE STRONG INNOVATIVE
02:57:55PRIVATE COMPANIES, BUT THEY CANNOT GO UP AGAINST CCP ON
02:57:58THEIR OWN.
02:58:00THIS IS A MATTER OF NATIONAL SECURITY, WHICH IS WHY I
02:58:04INTRODUCED DOMINANCE ACT.
02:58:18UH, THIS WILL STRENGTHEN OUR
02:58:21GLOBAL, UH, CRITICAL MINERAL SUPPLY CHAINS AND SECURE OUR ENERGY FUTURES. BUT OUR MULTILATERAL BANKS ALSO
02:58:25PROVIDE KEY AVENUE TO COUNTER PREDATORY CHINESE ECONOMIC ACTIVITY.
02:58:26SO COULD YOU TALK ABOUT THAT AND
02:58:31WHAT THE US SHOULD BE DOING
02:58:34DIFFERENTLY THROUGH THE WORLD BANK AND OUR OWN INSTITUTIONS TO COMPETE WITH CHINA?
02:58:37SEC. BESSENT: SURE. SO AS WE DID WITH THE G20 IN
02:58:40ASHEVILLE, WE ARE PUSHING FOR GREATER TRANSPARENCY AND TO MAKE SURE THAT THESE COUNTRIES DO NOT GET INTO A DEBT TRAP WITH RAPACIOUS LENDING AS WE'VE SEEN
02:58:44FROM CHINA.
02:58:45REP. KIM: THANK YOU VERY MUCH,
02:58:50SECRETARY, AND I YIELD BACK. >> THANK YOU, MS. KIM.
02:58:53MR. SECRETARY, I WANT TO THANK YOU FOR YOUR TESTIMONY TODAY.
02:58:55WITHOUT OBJECTION, ALL MEMBERS
02:58:59WILL HAVE FIVE LEGISLATIVE DAYS TO SUBMIT ADDITIONAL WRITTEN QUESTIONS FOR THE WITNESS TO THE CHAIRMAN. THE QUESTIONS WILL BE FORWARDED TO THE WITNESS FOR HIS RESPONSE.
02:59:03MR. SECRETARY, PLEASE RESPOND NOT LATER THAN OCTOBER 20.
02:59:06THIS HEARING IS ADJOURNED. [GAVEL]
02:59:10>> THANK YOU.
02:59:15>> THE AMERICAN PEOPLE ARE
02:59:21SUFFERING BECAUSE OF THESE SANCTIONS.
02:59:22>> WHAT YOU HAVE DONE TO THIS
02:59:26COUNTRY IS DISGUSTING. DO YOU SUPPORT THE AMERICAN
02:59:29PEOPLE OR DO YOU SUPPORT GOLDMAN SACHS?
02:59:34DO YOU SUPPORT THE AMERICAN PEOPLE OR DO YOU SUPPORT EMBEZZLEMENT BY THE TRUMP ADMINISTRATION? DO YOU WANT TO STARVE CUBA? DO YOU WANT TO STARVE IRAN?
02:59:38YOU ARE A DISGUSTING DISGRACE. YOU SHOULD BE ASHAMED OF YOURSELF.
02:59:40>> TIME TO GO.
02:59:44[CAPTIONS COPYRIGHT NATIONAL CABLE SATELLITE CORP. 2026] [CAPTIONING PERFORMED BY THE NATIONAL CAPTIONING INSTITUTE,
02:59:48WHICH IS RESPONSIBLE FOR ITS CAPTION CONTENT AND ACCURACY. VISIT NCICAP.ORG] >> BEST IDEAS CAN BE FOUND ANYWHERE.
02:59:51>> WE HAVE TO LISTEN SO WE CAN GOVERN BETTER >> DEMOCRACY
02:59:54DEPENDS ON STABILITY.
02:59:56>> BRIDGING THE DIVIDE IN AMERICAN POLITICS.
03:00:00>> YOU CAN FIND AREAS WHERE YOU DO AGREE.
03:00:04>> CHRIS AND I ARE ACTUALLY FRIENDS.
03:00:07HE VOTES WRONG ALL THE TIME, BUT WE ARE ACTUALLY FRIENDS.
03:00:09>> SCOTT AND I ACTUALLY RESPECT EACH OTHER.
03:00:12>> WE DON'T HATE EACH OTHER.
03:00:14>> WE ACTUALLY KIND OF LIKE EACH OTHER.
03:00:17>>'S EYES TO BE WITH A MEMBER WHO KNOWS WHAT THEY ARE TALKING
03:00:21ABOUT. >> YOU GUYS DID AGREE TO THIS ABILITY.
03:00:24>> HE IS MY SON $10.
03:00:27>> THAT'S FIGHTING WORDS.
03:00:29>> I'M NOT IN CHARGE.
03:00:31>> THERE ARE NOT SHOWS LIKE THIS
03:00:36INCENTIVIZING THEIR RELATIONSHIP.
03:00:37>> "CEASEFIRE," FRIDAY NIGHTS ON
03:00:43C-SPAN. ANNOUNCER: ON WEDNESDAY, FEDERAL
03:00:47RESERVE CHAIR KEVIN WARSH WILL HOLD A PRESS CONFERENCE COLORING
03:00:51-- FOLLOWING THE FED'S DECISION ON WHETHER TO RAISE INTEREST RATES. THIS COMES AFTER THE CONSUMER
03:00:54PRICE INDEX ROSE IN AUGUST AND
03:00:56AT A HIGHER RATE THAN EXPECTED. WATCH LIVE AT 2:30 P.M. EASTERN
03:01:00ON C-SPAN3, C-SPAN NOW, OR
03:01:07ONLINE AT C-SPAN.ORG.
03:01:10>> DEMOCRATIC CANDIDATE FOR
03:01:15GOVERNOR IN GEORGIA HELD A NEWS
03:01:16CONFERENCE AND TALKED ABOUT DATA CENTER DEVELOPMENT, CRITICIZING
03:01:20THE REPUBLICAN OPPONENT RICK JACKSON FOR HIS INVOLVEMENT IN
03:01:23THE INDUSTRY. THE NONPARTISAN COOK POLITICAL REPORT AND INSIDE ELECTIONS
03:01:27RATES THE RACE A TOSSUP.
03:01:41>> ALL RIGHT, WELL, IT'S
03:01:46OFFICIALLY AFTERNOON, SO GOOD
03:01:49AFTERNOON, EVERYONE, FOR BEING
03:01:51HERE. I AM EXCITED TO BE HERE TODAY
03:01:55BECAUSE OF THIS TOPIC. WE ALL KNOW THAT THERE'S BEEN A LOT OF CONVERSATION AROUND DATA CENTERS AND THE COMMUNIT