00:00Thank you, Mr. Chairman. And Mr. Chairman, I agree with you. I think the independence of the Fed is absolutely paramount.
00:09But we cannot ignore the elephant in the room, and that is that President Trump has launched an all-out assault on the independence of the Federal Reserve.
00:18Dr. Myron has said that, quote, to pretend that one can easily shift between highly political and allegedly non-political roles without letting political biases inform policy is at best naive and at worst sinister. Sinister.
00:40So that's what you're about to do, go from a highly political role to a non-political role.
00:46And since you describe how you'll be informed by your political biases, I think the American people have a right to understand just how independent you are or are not.
00:58So let's measure that a little bit. Dr. Myron, let's start with an easy question to show that you have some independence from the President.
01:05Easy yes or no. Did Donald Trump lose the 2020 presidential election?
01:15No, it's a yes or no. Microphone on, please.
01:18And the chair is going to be tough on time. I just need a yes or no. Did Donald Trump lose the 2020 presidential election?
01:27Thank you, Senator Warren. Joe Biden was certified by Congress as the President of the United States.
01:34Right. So did Donald Trump lose that election?
01:36As I just said, Joe Biden was certified by the Congress.
01:39Did Donald Trump lose that election? Can you say the words, Donald Trump lost that election? Are you independent enough to say that?
01:45The Congress certified Joe Biden as President of the United States.
01:47All right. So that was one. Let's try another.
01:50Let me ask you another question here.
01:52The Federal Reserve relies on accurate and unbiased data to make monetary policy, including data produced by the Bureau of Labor Statistics.
01:59President Trump recently fired the BLS commissioner, alleging that she, quote,
02:05faked the jobs numbers before the election to try and boost Kamala's chances of victory.
02:12Do you agree with President Trump that the BLS published fake numbers to manipulate the outcome of the 2024 presidential election?
02:22Thank you for the question, Ranking Member Warren.
02:24Look, the data quality from the Bureau of Labor Statistics.
02:27That's not the question about the data quality.
02:29Did, as President Trump said, the BLS publish fake numbers to manipulate the outcome of the 2024 presidential election?
02:41This is what President Trump said.
02:43Is he right?
02:44You're the head of the Council of Economic Advisors.
02:46The Bureau of Labor Statistics data on various measures has deteriorated steadily in quality over time.
02:52I understand that you may have questions about the data quality.
02:56But I want to remind you that when the data seemed to show that Donald Trump's jobs numbers were doing well,
03:02I didn't hear you say a single word about problems with data quality.
03:07The only time you started questioning data quality was when the numbers started showing that Trump's economy was headed in the wrong direction.
03:15So let me ask you the question for the third time.
03:18We want to understand your independence.
03:20Donald Trump stated that the BLS faked the job numbers before the election to try and boost Kamala's chances of victory.
03:32Do you agree with that, yes or no?
03:34The Bureau of Labor Statistics did not take corrective action to improve the quality of steadily deteriorating data.
03:40Do you agree with the statement that they faked numbers?
03:42I believe that they were complacently allowing the data to continue to deteriorate quality.
03:45Do you have any evidence that they faked numbers?
03:49Well, as I said a moment ago, the data have steadily deteriorated in quality, and I'm happy to give you some examples of how that would happen.
03:53Okay, in other words, just two straightforward questions about your independence, and you've blown both of them.
03:59So let's shift to the inflation caused by presidents' economic policies, which you've had a key role in designing.
04:07You've claimed, for example, that consumers thus far have not seen any material macroeconomic increase from tariffs at all.
04:16Your statement.
04:17The numbers do not back you up.
04:19Since January, cost of groceries is up.
04:21Cost of utilities is up.
04:23Cost of housing is up.
04:24Cost of back-to-school shoes is up.
04:26Cost of backpacks and baby strollers, up, up.
04:28Dr. Myron, the data say that costs for basic necessities are going up, but it's not just the reported numbers.
04:38Fed Governor Waller, who President Trump appointed, private sector forecasters, small businesses, and families are all telling us that the costs are up, up, up.
04:50Do you think those families and data experts are lying?
04:54Senator, thank you for the question.
04:56I believe your question is conflating relative price increases with inflation, which is an increase in the aggregate price level.
05:03There has been no detectable increase in the aggregate price level as a result of tariffs.
05:07You know, Dr. Myron, you have made clear that you will do or say whatever Donald Trump wants you to do or say.
05:14And that may work in a political position, but it takes an axe to fed independence and will make life far more expensive for American families.
05:23I apologize for going up.
