You're watching...
Acting Treasury Secretary Neal Wolin on the potential consequences of sequestration.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
After the bell I'm -- claim a lot from the Chicago Mercantile Exchange why are we in Chicago well of course to be on the trading floor we love it here but.
On top of that I had an opportunity to day.
To have a Fox Business exclusive with the acting Treasury Secretary -- Woolen we caught up.
With secretary -- and his all -- -- his high school Evanston Township High School talk about a success story.
Local kit makes good.
He went off to Yale he then of course went to work for the Clinton administration and the Obama administration serving as acting acting deputy secretary.
Of the treasury under Timothy Geithner but perhaps his biggest role is right now as acting Treasury Secretary since Timothy Geithner stepped down -- because in less than 72 hours.
-- Woolen will be the Treasury Secretary barring any quick of course confirmation of Jack Lew who is waiting in the wings perhaps.
When we kick in with the sequester the 85 billion dollars in cuts that will automatically kick in unless there is an eleventh hour deal in -- Fox Business explicit.
While we spoke a lot about that I began by asking him how long he's committed to stay at the Treasury Department.
-- very focused on doing the work of the treasury we've been working hard to make sure the jetBlue gets confirmed as.
Quickly as possible it's -- IRS commissioner I heard -- I don't know I don't think so but -- it's been a great honor to serve this president and at this time -- What I've said to the president what I said to Jack -- is that I'll stay on for an appropriate period them.
For that period at least I'll be very very focused on making sure that the treasury is is working and is running as -- possible.
You look at the process of the vote we don't know when the house is going to get it when it goes to which floor eccentric -- but.
This -- York's right now when we're talking about the sequester where 72 hours away three days away what is your best guess.
Mr.
secretary on what will happen by Friday will there be an eleventh hour deal.
Well we can know that -- I certainly hope that we can avoid the sequester because if the sequester traders on.
It will bring a lot of harm to our economy -- to our national security it is completely avoidable.
And we hope of course that the congress does the things necessary.
How to avoid it at that would require a balanced approach to working through our fiscal issues but.
We certainly hope that the congress can get themselves around two to doing just that looks like -- running out of time.
Well time is getting short there's no question about that the president I think is laid out.
Hum a balanced approach in the other -- real questions here about whether.
The US should be on the forgoing things that are important to our country and to our economy not.
Paying for teachers not paying for roads and bridges to be repaired and rebuilt.
Also that we can make sure that we retain.
A set of deductions and loopholes that the very wealthiest among us -- can continue to enjoy and so that stuff fundamental choice that we have before us when you look so.
At the bigger picture -- the words we hear about what will happen if the sequester kicks in calamitous.
Draconian cuts.
And then there people who look at this and say wait a minute our federal budget is.
Twice the size and it was just over a decade ago is is it impossible to -- just 2.3 percent.
-- three -- -- dollar auction.
Well you know there's there's going to be more than 2.3 percent coming off of an awful lot of council for a government can.
The various.
A secretary is the -- cabinet have laid out what the implications will be for their departments him -- -- furloughs him honest services that will be formed on the number of small business -- loans and so forth -- won't be made the teachers that won't be paid for.
And of course the military the Pentagon and a joint chiefs and so forth and make clear what implications will be to our national security and it's certain it's of very bad picture that -- -- It's not appropriated properly.
At least with the treasury could the president saying weird.
Willing to look at 85 billion in cuts just appropriated differently house.
Look -- no amount of flexibility.
-- difference of appropriation adjustments that you know assuming congress could get to that which it hasn't.
That will forestall forego the kind of economic damage -- national security damage that will.
Occur if the sequester triggers on and what we need to do we need to come around to doing what congress ought to do is.
To put four to -- approach.
That avoids all that is not necessary for us to.
Have to feel the economic pain and the national security pain.
That would be entailed and you know our economy has been moving along at up.
Upward -- it used to.
Pick up that pace will be a shame is if in -- -- way congress threw sand -- those gears that would be self inflicted wound that we should avoid.
Let's talk about but other things that are now coming to a groundswell for example -- frank you know that -- is not entirely -- and particularly the Volcker -- part of it -- of course one of the architects of Dodd-Frank.
When will the Volcker Rule regulation speech -- be -- Well you know we've made an awful lot of progress -- on Dodd-Frank implementation overall it's a very complicated statute as you know -- It's important for the regulators as they do the work of the implementation.
Take the time to get it right on the Volcker Rule itself.
You know there are -- number of agencies that are working on this five of them in all and you know they've spoken to what they expect the timing to -- -- expect it will be.
You know sooner than later but again.
Think a key point is to make sure.
-- -- The details of global Corel.
Reflect although -- that these -- agencies have gotten from the public and from stakeholders about what the contours of that a lot of big detail.
The correct word I was looking at some of the numbers are hundreds of little coral questions -- the which breakdown into more than a thousand some questions easy chance -- much.
-- people -- -- -- Moses got it right into into pages.
It is it -- chest too much at 23 times the length of Glass-Steagall.
I don't think so listen to people complain when they don't have a sufficient opportunity to add their voices they don't have a opportunity to explain what they think the right approach ought to be and again.
You know we don't wanna.
-- put -- -- rule the regulators don't wanna put four ruled that.
-- that isn't well thought through and so you know lots of people have ideas and views about this they feel very passionately about those views and ideas.
And so it's gonna require some time and it's gonna require some some additional work.
-- --
