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00:00What am I meant for Washington, D.C.? This president is not scared to intervene, whether it's taken an equity stake in Intel or attempted to fire a sitting Fed governor. David, you've seen it all in your time in Washington and on Wall Street. How would you describe this moment in the nation's capital? Well, obviously, it's a time of first impression, as lawyers would say. We haven't seen this before. The Federal Reserve has never had somebody fired by a president United States before. As far as I know. The Federal Reserve was set up in 1913. So this is a very difficult situation. We don't know what the outcome will be. These are clerks has said she's hired a lawyer, a well-known lawyer in Washington, D.C., and she's presumably going to fight this somewhat, probably be resolved in the courts. David, it's a market that's little reacting to that. Maybe some in yields, little in equity. You've worked with countless companies over your career. When there's this level of uncertainty in Washington, D.C., be it tariffs, be it, as John was saying, be more active and taking stakes in companies. What is the playbook? Well, obviously, markets like certainty. They don't like unpredictability. But many of the things that President Trump has been doing are things he's said he would do. And many of these things are relatively predictable in the sense that he's said he wants to make changes in the Federal Reserve. So I think the markets are not as upset about it as if some other president were doing it. And I think the markets will absorb it. We don't know how this is going to get resolved. But clearly, what's going on is an effort to lower interest rates on the part of the president. And he believes strongly that that's a desirable outcome. And he's told that to Jay Powell. And I suspect we'll be seeing a lowering of interest rates at the next Fed board meeting. Jay Powell more or less telegraphed that when he was out west recently at the Federal Reserve, meeting it out and out and out west. So I think that the markets are anticipating a 25 basis point cut. Jay Powell is pretty good about telegraphing what he's going to do and then following through on it. So I would be surprised if we don't get a 25 basis point cut and very surprised if we get a much bigger cut. Fair enough, David. I mean, what is overall your read on both the threat of credibility of this institution and the independence of this institution? How fragile or not is it? Well, the Federal Reserve is one of the most respected institutions in Washington, and I'd say that perhaps the two most respected institutions overall in Washington might be the Supreme Court over many, many years and the Federal Reserve since 1913. And I think that both institutions have their own challenges from time to time. But I think that their strength and their reputation over a period of time will stand them in good stead. So I don't think the Federal Reserve is going to fall apart over this. The Federal Reserve is very important. Its independence is very important. But I think in the end this will probably get resolved in some type of settlement or some type of out of court process. So I don't think it's going to be a big surprise how this gets resolved. And I think in the end, when the president makes a decision about who in the Fed chair is going to be, I think the markets will be relieved to see who he's picking. And I suspect he will make some announcement in the not too distant future. And that person presumably will lower interest rates, as the president has indicated he wants the next Fed chair to do. And David, the list of candidates is very credible. So far at least. Attitudes towards markets don't seem to have shifted too much. Stocks are very close to all time highs. Credit spreads are still incredibly tight from the people you speak to, the large investors from the outside looking in internationally, looking at the United States, have you noticed a shift in attitudes at all or are things settled down? Around the world, most investors understand that the president is somebody that likes to shake things up and it will do unconventional things. And the markets have gotten used to that. The markets are very high right now, and therefore, the markets are not all that upset about what the president's doing because they understand that's his modus operandi. So I think that the fact that markets are so high shows that people are not afraid of what the president's doing. In many cases, people think what he's doing is a good idea. In some cases people don't. But I don't really think the markets are are running away from him. And I don't think the markets are falling apart because of what he's now doing in a number of areas like the Intel matter or the Lisa Cook matter, they'll get resolved in some manner that I don't think it's going to be too disruptive of the markets. David, We're looking forward to the next episode of Olympic Wealth. Of course, it airs tonight. I understand you sat down with the TiVo CEO, Robert Sharp's. He spoke to you about active versus passive management. He also has a major stake in the future of the city that is dear to your heart, the city of Baltimore. Can you walk us through the discussion that you two had? Sure. Robert Sharps runs a T Rowe Price, which is about a $1.6 trillion asset management company. It's basically more actively managed than passively managed, and they've done quite well over many, many years. I should point out that he's a sponsor of the Baltimore Orioles, which I'm a principal owner of, so I have a partial feeling towards his company and I should disclose that. But he's done a very good job of working his way up from being an analyst there and a fund manager to being the CEO. And the company has done pretty well under his management. So I think it's a company that many people put their 401k money in and other types of money into their their their funds. And I think they've done reasonably well from what I understand. Full disclosure, David, we're still waiting for baseball tickets. Where are they? What happened? I thought we're going to have a big get together. Bloomberg Surveillance on the road coming down. You were going to host us. What happened? Well, I'm waiting for next season. This season didn't work out quite as well as I would have predicted. Injuries are a bigger problem than I anticipated, but I'm going to try to, you know, get people not to be so injured next year and maybe I'll show them some batting tips or pitching tips myself.

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Rubenstein Expects Fight Over Lisa Cook to End in the Courts

Bloomberg host and Carlyle Group Co-Chairman & Co-Founder David Rubenstein talks about President Donald Trump trying to fire Federal Reserve Board Governor Lisa Cook. He says this is part of Trump's effort to lower interest rates. Rubenstein expects the Fed to cut rates by 25 basis points in September. He speaks on "Bloomberg Surveillance." (Source: Bloomberg)

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