these next few hours. with the crisis in ukraine of course front and center. yvonne: it's been nearly a week since the invasion and biden has not shown -- and we have not seen any signs of backing down. a more brutal phase of the invasion is shocking the market, including elevated energy prices that could be sustained. the market is focused on stagflation. we are watching hang seng closely. done close to 1%. lack of clarity on how long the full lockdown could be if it is looming. hong kong dollar is weaker.

yield pick up one basis point in china. $107. david: gyrations across the market. oil, wheat. we will track these. also today, the u.s. president's state of the union. ukraine and russia front and center of what we expect to hear from the u.s. president. stay here for special coverage as we bring you his remarks live. this is bloomberg. ♪

>> from bloomberg world headquarters in new york, this is special coverage of the state of the union. thank you for joining us. president biden will deliver his first state of the union in less than an hour. he has -- he is entering the motorcade as we speak. much has changed since one year

ago. the world is focused on ukraine. and a war started by russia. joining me to talk us through, jeannie jingo and rick davis and anne-marie on capitol hill. anne-marie, the world has changed since the speech was first scheduled weeks ago for march 1, a war has begun. he will be watching -- he will be addressing the nation with that backdrop. the ukrainian ambassador to the u.s. is in the motorcade with him and will be seated with the first lady. does biden need to tell america the war will get worse before it gets better? >> not only was the ambassador

invited, she is in the motorcade and many hearts and minds are with the people of ukraine who are being assaulted in terms of weaponry on their city. the president will have a direct message to the u.s. and we have annexed sort of what he is going to say. when it comes to ukraine, he will say putin's war was premeditated and unprovoked and he rejected efforts at diplomacy and he thought west end nato would not respond and he thought he could divide us. pugin was wrong and we were ready. those are the words that the president is going to say. but the speech usually focus domestically. it had to be reworked and refocused. in terms of what is going on with the white house is that the president was tinkering with

this speech up until the day before. >> biden has passed the biggest investment in the infrastructure in generations but the rest of his economic agenda stalled after that. bailed back better fell on the wayside. -- build back better fell on the wayside and voting rights were formed never seemed to cross the finish line. will he tried to bring these back? >> many democrats are hoping that he will speak for pieces that have by supportive and -- pieces that have bipartisan support like lowering drug prices, clean energy and we expect him to discuss eldercare but democrats say it is important he sell the infrastructure planned to let americans know what it would mean for them and that it is not

just infrastructure. last year they passed the package addressing covid and lawmakers are saying biden needs to tell that, say part of the reason the u.s. is where we are in the pandemic is because of aid provided last year. >> we want to provide context and perspective for the speech in one of the best ways is to look back at where we were a year ago when he delivered his first address to the joint session. his approval rating was in the 50's one year ago when this was a different world and covid was the overriding story. withdrawal from afghanistan and signing of the infrastructure law culminating with inflation reaching 7.5%. looking at the trend heading lower, inflation is higher over

his first term, 7.5%. one of the overriding issues that has troubled him and given republicans powerful talking points we will likely hear following the address. we have talked a lot about inflation is a major risk politically for the him. what does he need to tell that has not already been said? ? >> at this point there is a competency issue and if he can get something done on inflation. he needs to have an action plan on things he will do in the next eight months to bring down inflation. if he is lucky, inflation comes down a little but he has to show that he knows what to do and will take action. >> the president has many audiences domestically and around the world. one will be progressives in the democratic party you are disappointed that better went

nowhere and voting rights legislation was sidelined. what does he say to them? >> they are set to give a rejoinder to the state of the union, unusual. he has a split caucus. they are waiting for him to say that he has not given up on pushing for the infrastructure bill. they blame moderates in that senate like joe manchin and christensen about forestalling his agenda and he has to tell them that even if he cannot get the $1.8 trillion they wanted, they can get parts of it. these would be things like the child tax credit or eldercare or childcare. parts of it. it will not make them completely happy but he needs to give them something because they are frustrated by how they have been stalled in the senate and they want democrats to do well in november. >> and a major coordinated

release of oil from strategic reserves from the u.s. and international partners. what does he need to say about it? oil was $106 a barrel today and this touches everyone watching. >> and it could potentially go up because the direction of travel is that people just do not want to touch russian crude. looking at the price of russian oil, just an hour ago, exxon mobil was the latest following shell and bp to say they are ditching assets and leaving russian ventures. so the president will likely want to talk about the geopolitical concern that it will hurt american consumers at the pump. and also wheat, aluminum, other: oddities -- other commodities

play into the supply chain. gasoline, groceries. this is the major domestic issue as he frames what is going on in foreign policy. >> this is a shot of the house floor. mitt romney and joe manchin having a quick word, both considered outliers in their own parties. when you consider what they have to talk about, they both go against the grain of the parties. >> this is a 50-50 senate and when you have that, senators have a lot of power. one thing i am struck at is the number of lawmakers we are seeing in blue and yellow, honoring ukraine. this has been a very bipartisan issue in congress. republicans and democrats have called for more aid to ukraine and for the u.s. to do what they

can in terms of sanctions and military aid. when you see biden come down the aisle he will be accompanied by members tied to ukraine, including a senator -- >> and for the most part, members are showing up without masks after the mandate was loosened in the house. but president biden is not going to wear when either. can he tell america we have turned the corner on covid? >> that will be a major theme. he has to take credit for moving the needle on covid and one of the best examples he can use is ditching the mask. the country got there pretty much ahead of everyone else and it is good to see congress fallen along. >> one of the more positive

headlines he has generated in an attempt to turn the page was last week when he nominated the first black woman to the supreme court, and it is assumed she will be nominated with some republicans. >> in a normal year, this would be a key part of the state of the union and she would have received a lot more attention this week but given the events in ukraine, he made this historic announcement. the first african-american woman to serve on the court and the fourth woman to sit on the court if confirmed. she got bipartisan support and has been in front of the senate for confirmation three times. every time she has done well. so we expect, she has the votes to get her through.

i think she will get maybe three republicans on her side. he will tell this because it was a campaign promise that he has lived up to and she is a phenomenal nominee by any measure. and he has really done justice breyer and the cord -- court proud with this nomination. >> we are 20 minutes away from the speech getting started that we will bring here. i suspect you had to get into the capitol complex early this evening, anne-marie. can you tell us about the enhanced security? law enforcement has been called from throughout the region to keep the complex safe. >> so far it has been smooth sailing. we got in relatively easy. it was pretty simple. you go through metal detectors and so on but getting here is bumper-to-bumper traffic because

everyone is rushing to get to the capital and then with the motorcade coming from the other side of pennsylvania avenue, all the roads are shut off. take the metro. there is heightened security as there always is right before the president speaks. >> and a bit of distance for covid. members will be separated by a chair tonight. they are up in the gallery where media and guests normally set. >> is sort of straddling the line. we are not having guests and we are separating members but all members could show up and do not have to wear a mask and basically everyone is taking advantage of that. it comes at this opportune moment for biden as he tries to get the message across that the country is getting back to normal and to take some credit for that return. >> nancy pelosi is standing just

behind where he will speak. so is vice president harris. that is the stage. the president will arrive shortly at the u.s. capitol and we have more special coverage of the state of the union address and a head on bloomberg, coming up. ♪

>> welcome back to bloomberg's special coverage of state of the union on tv radio and take. -- and quicktake. anne-marie, we are looking at the white house guest list. it is almost a roadmap of the topics in the address. the ukrainian ambassador to the u.s. is getting a lift in the motorcade from the white house. pat gelsinger, the ceo of intel will be sitting in the first lady's box. the chip manufacturing in ohio

speaks to the shortage and inflation and another issue of this white house for the past many months. >> i think pointing out these individuals, the intel ceo and that ukraine ambassador to the united states both sitting with the first lady shows the two main subjects of his speech. domestically, inflation. he wants to get the message across that we should expand the productive capacity of the economy, meaning we should put more in then taking more out to get prices lower. and foreign policy-wise will really focus on ukraine. this president has now become a wartime president. >> does the presence of pat gelsinger lead us to believe joe biden will make a call to get the you seek a bill passed that has been stuck for weeks? >> that is something we expect

to hear tonight. the bill passed with bipartisan support in the senate. in the house there was more partisan but republicans even in the house said they still want to get something done. right now we know negotiations are going on about the bill. no deadline yet or when it might pass but it is something lawmakers believe they can get done in the next few months and get to president biden's desk. not many bills can have that said about them that are the same scope and size. >> frances haugen is the facebook whistleblower who testified on capitol hill recently about the corrosive impact that facebook and social media has on kids who said facebook puts profit over privacy and compelling remarks that were well received by both parties. invited tonight. ?

>> that represents one of the key bipartisan issues. big tech is the other big issue. >> big tech is one thing but both parties want to get to this in different ways. republicans suggest they are concerned about censorship. democrats think they are -- they should be split up. what does the president say? >> i think he lays out a plan to hold them accountable. frances haugen took a stand against the use of social media affecting especially young women. that is an issue near and dear to the bidens and i think they will use it as leverage to start debate going after big bank and there is a lot of room for compromise within both parties. >> a third-generation steelworker we have seen before,

he introduced president biden at an event in pittsburgh. this brings union and infrastructure into the room and a chance to take a victory lap. >> absolutely. this is classic joe biden. who he knows to appeal to and who he wants to appeal to. this is one reason why hewon -- this is one of the reasons why he won the nomination in 2020. joe biden and the first lady hit the road tomorrow to tap the same thing. this is a traditional guest in the first lady's box so the president can say, this is what i did and i will continue to work for you. >> lenny scott nick, 1982, president reagan started this

tradition by inviting guests to call them out and highlight their effort at the state of the union. it helps save someone's life after the air florida crash. ever since then, it has been a hallmark of the state of the union and tonight you will see the president call them out. following the state of the union address, the president traditionally hits the road to advertise what was said. he's going to be advertising the infrastructure bill. will he bring anything new? >> potentially he will want to talk about fighting inflation and we have heard from him in the past that he uses that to talk about his build back better agenda, which joe manchin said is dead. but we know he wants to get pieces of the legislation through. one thing is the high cost of

prescription drugs. that could be brought up tonight. when he goes out he talks about the hard infrastructure when that was -- win that was paramount for his administration. he always talks about what more can be done and i think parts of the build back better plan will come up tonight. also, climate change. talking about more money to move along and what a moment, given the fact that they will want to talk about getting rid of dependency on foreign oil and oil in general. >> looking at images of the house floor, i see assigned seating. each lawmaker will be separated by a seat. they do not have to wear masks. there was some concern among

house and senate members when they saw assigned seats. what is the problem? >> i think some of them like to get to the chamber early so that they can get their aisle seat so they can shake the president's hand. some are being bumped up to the upper gallery which is usually reserved for guests and journalists. those numbers are limited this year. >> if you are with us on television, quicktake, the motorcade is on the move and president biden is headed to the capital. we have to talk about the governor of iowa delivering the formal republican response five minutes after biden is done. she is suggested as a possible running mate for donald trump. the first female governor of iowa. what is her job tonight? >> to be the midwest

representation of the gop. plainspoken, simple. i think that is part of her message. she took on covid but did not do it with mandates and restrictions, she did it in a practical way and gets credit for that. regardless of what happens in the campaign, she wants to make a good splash of the party and at home and i think it is brilliant to have her give this from iowa instead of coming to washington and look at a place. there are a lot of pitfalls that come with delivering the response. history shows it makes the cover of the wheaties box. >> i think tim scott did a great job last year on the republican response and i think if she sticks to her message she will deliver from des moines, she will talk about what she did involving covid, pandemic,

mandates, children in schools. that was critical. she will also take on the president on inflation on the economic front. she is an upcoming star in the republican party and they want to showcase her as a potential running mate or potential candidate for president going forward. >> members of the supreme court are introduced and taking their seats shortly for this first state of the union from president biden. there will be another response tonight. proceeded to leave will have her own response -- rashida tlaib will have her own response. is she trying to call out the president?

>> i think they will be responding to the frustration they feel with centrist democrats in the senate who have held up a very important bill for liberal democrats, which is joe manchin and kyrsten sinema. it is not what the president wants or needs but they will be doing it. we also have the nope labels -- we also have the historical black caucus and no labels response. a lot for his own party. >> the first lady and second gentleman are taking their seats in the first lady's box, where guests will join her shortly. the president soon to arrive at the u.s. capitol. we have four democratic response

to the democrat responded -- to the democratic president's address. what does that speak to the sin margin that -- to the margin they enjoy in washington? >> a number of democrats were quite surprised that she was giving an address. it will be interesting to see what she says regarding biden. the congressional black caucus response will be given by agent -- by a member of democratic leadership within that inner circle so will be interesting to see what they say. i imagine it will be more in line with what biden says tonight. >> marty walsh and pete

buttigieg are making their way down a crowded aisle. the speech will begin in moments. we will hear from the sergeant at arms, who will introduce the president. a copy of the speech will be delivered to the speaker of the house. the length of the speech. many people take note of this. bill clinton holds the record from 2000. >> this is not biden's favorite forum. big speeches on national television. he wants to meet you in his living room. he will probably make his point. it will be interesting to see how many ovations are bipartisan.

>> we are one minute away from the president being introduced. texas crude at $107 now as the this will be one of the major themes of the address, as he talked about the war in ukraine. >> looking down on my calendar, i see $108 on wti, astronomical for oil prices, especially wti which trails around right usually, not to get too technical. foreign policy meets domestic here. the foreign policy is the fact you will see a geopolitical risk premium in the oil price because potentially, even a big u.s. has workarounds for energy trade, you have individuals not wanting to go pick up russian crude,

people wanting to reject putin's russia. this is the second biggest exporter in the world when it comes to the crude oil market and what the president will face at home is what the geopolitical risk means to wti and brent, higher gasoline prices. ukraine and inflation, the biggest parts of this beach, come head-to-head when it comes to the oil market and gasoline prices. > on capitol hill live tonight, we learned the designated survivor. the secretary of commerce, gina raimondo, will not be in the room for obvious it reasons. we are seconds away from this beginning. we will hear from the house sergeant at arms, general william walker, as the house comes to silence. we will introduce the president and start the fanfare as he makes his way down the aisle. let's listen live from washington with the house sergeant at arms. gen. walker: --

>> maybe a touch delayed. the lawmakers are still gathering and don't seem to be too prepared for this to start soon. when the president gets up to the speakers rostrum, we call the previous states of the union that this speaker of the house has presided over, and we remember the night she tore up donald trump's speech and refused to shake his hand. what is her job tonight? is it is simply a product -- applaud the president? >> as the speaker as the same party of the president, she will applaud. you remember the awkward moment when she was vice president and paul ryan was the speaker. when it is spent like that -- split like that, you will see one standing in the other sitting. we will see the vice president and speaker both applauding and

speaker of the house pelosi has said she is running again but we don't know if you will run for speaker again. the first female speaker of the house in american history. many think this may be her last year. or her last term. i say may, because she is running again and we are not sure if she will try to become speaker again but a historic speaker who has had -- sat through so many of these as the first female. >> when we consider what can happen in the speeches, it is remarkable. there can be moments of history. will there be a money line? "the year of big government is over," something better than sought -- the speaker tearing up the script. >> people are looking for the evil empire allusion. we know we are competing with russia and china and have talked about russia a lot but china will have a showing in this beach. what will president biden say about china?

how well he juxtaposed the competition with them,, and where does he see this beach as an opportunity to divide china from russia? some people will look for a moment there. everybody is anxious to see how he positions himself on inflation, far and away the most important issue this year to the biden administration. he's behind the curve on getting to the voters on this issue. tonight is his best, single chance to do that between now and the midterm election. >> it is one of the nights republicans are sitting through extended portions of the address, particularly when it comes to the matter of supporting ukraine in the war against russia. would it not be first -- something for the president for duster call of ---for the president to call out the republicans for what they are doing on international television tonight? >> most presidents look at this opportunity not to talk into the chamber but big into the popul r tion at-large and into the

world. especially with the comments related to ukraine and the russian incursion into ukraine, joe biden knows that he is speaking to the rest of the world to competitors in china and allies in europe and i don't think they will want to play partisan politics with this beach. >> we now hear from the sergeant at arms, general william walker. gen. walker: madam speaker, the president of the united states. >> and so it begins. president biden entering the chamber, escorted by the sergeant at arms of the house and sergeant at arms of the senate. as he makes his way down the aisle, emily wilkins made the point that lawmakers tend to compete for aisle seats, vowing to get on television and to shake the hand of the president and give a hug. they didn't have too much choice this time around. >> they did not, but we still

see everyone who is in the aisle seats taking advantage of that, grading the president warmly. you see that for both democrats and republicans at this point. we see a lot of support for ukraine here. this part does feel like the pre-pandemic, even though we see the gaps in the seats. we see the human contact and biden leading in. biden will try to show the world tonight that the u.s. is trying to move past the pandemic and we have made progress from a year ago >> this president does not have a mask and is in close proximity with dozens of lawmakers, embracing them in front of the camera. none of them have masks. i will ask it again. does he tell the nation we turned the corner on covid?

is that a victory lap? >> it is. covid rates are coming down. we have new cdc guidelines in terms of the fact that the president can feel safe and confident walking through the doors, abiding by the cdc when it comes to the masks. joe, we should also remember in july, july 4, he basically said the u.s. was free of covid and, of course, that hurt the administration in the winter when there was another surge and many blamed them for being unprepared on another front, but right now would be a victory lap for the fact that those rates are down and he is able to get the state of the union. as emily said, really brief his fellow colleagues of the senate. >> president biden being introduced. rep. pelosi: i have a high privilege and distinct honor of presenting to you the president of the united states. [applause]

>>'s first round of applause of the night, as he delivers his address to the speaker of the house and vice president kamala harris, now spending in this features -- standing into the speakers rostrum. the speech is loaded into the prompter and lawmakers prepared to take their seats along with the supreme court justices and white house cabinet in attendance. let's watch and listen live on bloomberg tv, radio, and quicktake as president biden delivers his first state of the union address. [applause] pres. biden: thank you. thank you all very, very much. thank you. please. thank you so much. madam speaker, madam vice president, our first lady and second gentleman, members of

congress, the cabinet, justices of the supreme court, my fellow americans, last year, covid-19 capital part. this year, we are finally together again. [applause] pres. biden: tonight, we meet as democrats, republicans, and independence, but most importantly, as americans. the duty to one another, to america, to the american people, and to the constitution. an unwavering resolve that freedom will always triumph over tyranny. [applause] pres. biden: thank you. six days ago, russia's

vladimir putin sought to shake the very foundation of the free world, thinking he could make it bend to his menacing ways, but he badly miscalculated. he thought he could roll into ukraine and the world would rollover him. instead, he met with the role of -- wall of strength he never anticipated or imagined. he met the ukrainian people. [applause] pres. biden: president zelensky, to every ukrainian, their fearlessness, courage, and determination really inspires the world. citizens blocking tanks with their bodies. everyone from students to retirees to teachers, turned soldiers defending their homeland. in this struggle, president zelensky said the european

parliament, light will win over darkness. ukrainian ambassador to the united states is here sitting with the first lady tonight. if you are able to stand, stand and send an unmistakable signal to the world. [applause] pres. biden: thank you, thank you, thank you. bright, strong resolve. [applause continues] pres. biden: yes. we, the united states of america, stand with ukrainian people. throughout our history, we have learned this lesson.

when dictators do not pay a price for their aggression, they cause more chaos. they keep moving. the threats to the america and the world keep rising. that is why the nato alliance was created to secure its -- peace and stability in europe after world war ii. the united states is a member with 29 other nations. it matters. american diplomacy matters. american resolve matters. prudence -- putin's latest attack on ukraine was premeditated and totally unprovoked. he rejected repeated, repeated efforts at diplomacy. he thought the west and nato would not respond. he thought he could divide us at home, in this chamber, in this nation. he thought he could divide us in europe, as well, but putin was wrong. we are ready. we are united, and that is what we did. we stayed united.

we prepared, extensively and carefully. we spent months building coalitions to confront putin. like many of you, i spent countless hours unifying european allies. we shared with the world in advance what we knew putin was planning, and precisely how we would try -- he would try to falsify and justify his aggression. we counter russia's lies with the treat, and now he has acted -- truth, and now he has acted. the free world is holding him accountable along with the european union and countries like the united kingdom, canada, japan, korea, new zealand, and switzerland are inflicting pain on russia and supporting the people of ukraine. putin is now isolated from the world, more than he has ever

been. [applause] pres. biden: together, along with our allies, we are enforcing powerful economic sanctions, cutting off russia's largest banks in the international financial system, preventing their central bank from defending the ruble, making putin's $630 billion world fund -- war fund worthless. [applause] pres. biden: we are choking russia's access to technology that will weaken its military for years to come. tonight, i say to the russian oligarchs and the corrupt leaders who built billions of dollars off this violent regime, no more! the united states --i mean it.

[applause] pres. biden: the united states, the department of justice is assembling a dedicated task force to go auctor -- after russian oligarchs' crimes to seize their private jets, their luxury apartments. we are coming for you, ill give --lb got against. i'm announcing we will join our allies in closing airspace to all russian flights, and adding additional strain on their economy. [applause] pres. biden: he has no idea what is coming. the ruble has already lost 30% of its value. russia's stock market has lost 40% and trading remains suspended. the russian economy is reeling.

putin alone is the one to blame. with our allies, we are providing support to ukrainians in their fight for freedom. military assistance. economic assistance. humanitarian assistance. we are giving more than one billion dollars in direct assistance to ukraine and will continue to aid the people as they defend their country and help ease their suffering. [applause] pres. biden: let me be clear. our forces are not engaged, and will not engage, in conflict with russian forces in ukraine. our forces will not go to europe to fight ukraine or to defend our nato allies in the event putin decides to keep moving west. for that purpose, we have mobilized american ground forces, air squadrons, ship deployments to protect nato

countries including poland, romania, latvia, lithuania, and dystonia, and as i have made crystal clear, the u.s. and our allies will defend every inch of territory that is nato territory to the full force of our collective power --every single inch! [applause] pres. biden: we are clear eyed. ukrainians are fighting back with pure courage for the next few days, weeks, and months will be hard on them. putin has unleashed violence and chaos. while he may make gains on the battlefield, he will pay a continuing high price in the long run, and a pound of ukrainian people, proud, proud people, pound for pound, ready to fight with every inch they have. they have known 30 years of independence and repeatedly

shown that they will not tolerate anyone who tries to take their country backwards. for all americans, i will be honest with you, as i promised i would be. a russian dictator invading a foreign country has costs around the world. i'm taking real action to make sure the pain of our sanctions is targeted at the russian economy and that we use every tool at our disposal to protect american businesses and consumers. tonight, i can announce the united states has worked with 30 other countries to release 60 million barrels of oil from reserves around the world. [applause] pres. biden: america will lead that effort. 30 million euros of oil from the strategic petroleum reserve and we stand ready to do more if yet -- necessary, united with our allies. i know news about what is happening can seem alarming to all americans, but i want you to know, we are going to be ok.

we are going to be ok. when a history of this era is rating, food and will have left russia weaker and the rest of the world stronger -- written, putin will have left russia weaker and the rest of the world stronger. [applause] pres. biden: while it shouldn't have taken him something so terrible for people around the world to see what is at stake, everyone sees it clearly. we see unity among leaders of nations, a more unified europe, a more unified west. we see unity among the people gathering in cities and large crowds around the world, even in russia, to demonstrate their support for the people of ukraine. the battle between democracy and autocracies, democracies are rising to the moment, and the world is clearly changing for

peace and security. this is the real test. it will take time. let us continue to draw inspiration from the iron will of the ukrainian people. our fellow ukrainian americans forged a deep bond that connection our two nations. we stand with you. we stand with you. hoodie may circle -- putin may circle kyiv with tanks but he will never gain the hearts and souls of the ukrainian people. [applause] pres. biden: he will never extinguish their love of freedom or weaken the resolve of the free world. [applause] pres. biden: we made tonight in an american who has lived through two of the hardest years the nation has faced. the pandemic has been punishing

and so many families live paycheck-to-paycheck, struggling to keep up with the cost of food, gas, housing, and more. i understand, like many of you did. my dad had to leave his home in scranton, pennsylvania to find work. i grew up in a family when the price of food went up, it had an impact throughout the family. that is one of the first things i did as president, fight to pass the american rescue plan, because people were hurting. we needed to act in did. two pieces of legislation have done more to lift us out of a crisis. if you would our efforts to vaccinate the nation and combat covid-19, delivering economic aid to tens of millions of americans, putting food on the table. remember long lines of cars for hours to get a box of food? it cut the cost of health care insurance and as my dad said, it gave people just a little bit of

breathing room. unlike the $2 trillion tax cut passed by the previous administration that benefited the top 1% of americans, the american rescue plan help working people and left no one behind. [applause] pres. biden: and it worked. it created lots of jobs. our economy created 6.5 million new jobs just last year, more jobs in one year than ever before in the history of the united states of america. [applause] pres. biden: the economy grew at

a rate of 5.7% last year, the strongest in 40 years in the first step in bringing fundamental change to our economy that has not worked for working people for too long. for the past 40 years, we were told the tax rate for those at the top would trickle down but that led to weaker economic growth, lower wages, bigger deficit, and a widening gap between the top and everyone else in nearly a century. [applause] pres. biden: vice president harris and i ran for office and i realized we had fundamental disagreements on this, but ran for office with a new economic vision for america. we invested in america. educating america. grow the workforce. building the economy from the bottom up in the middle out, not the top down. [applause] pres. biden: because we know

when the middle class grows, the wealthy do very well. america used to have the best road just -- roads, bridges, and airports, and now, our infrastructure is ranked 13th in the world. we will be able to compete for the jobs of the 21st century if we do not fix it. that is why it is so important to pass the bipartisan infrastructure law, and i thank my republican friends who joined to invest and rebuild america. [applause] pres. biden: the single biggest investment in history. it was a bipartisan effort and i want to met -- thank the members of both parties who worked to make it happen. we are done talking about infrastructure weeks. we are now talking about infrastructure decade.

it will transform america. to put us on a path to win the 21st century where we face the rest of the world, particularly china. i told xi jinping it is never a good bet to bet against the american people. we create good jobs for millions of americans to modernize infrastructure across america, and we will do it to withstand the devastating effects of climate change and promote of -- environmental justice and build a national network of 500,000 electric vehicle charging stations. replace the poisonous lead pipes so every american has clean water to drink. we will provide affordable, high speed internet for every american in rural, suburban, urban, and tribal communities.

4000 projects have been announced. many of you have announced them in your districts and tonight, i am announcing this year, we will start fixing over 65,000 miles of highway and 1500 bridges in disrepair. [applause] pres. biden: fulks -- folks, when we use taxpayers' dollars to rebuild america, we will do it by buying american. by american products. support american jobs. [applause] pres. biden: the federal government spends about $600 billion a year to keep the country safe and secure, but it has been law for almost a century to make sure taxpayers' dollars support american jobs and businesses.

every administration, democrat or republican, says they are doing it, but we are actually doing it. we will buy american to make sure everything from a deck of an aircraft carrier to this deal on a highway guardrail is made in america from beginning to end. all of it. [applause] both -- pres. biden: to compete for the jobs of the future, we need a level playing field with china and other competitors. if that is why it is so important to pass a bipartisan innovation act sitting in progress that will make investments in emerging technologies and manufacturing. we use to invest 2% of our gdp in research and development. we don't now. china is. let me give you an example of why it is so important to pass.

if you traveled 20 miles east to columbus ohio, you will find 1000 empty acres of land. it will not look like much but , if you stop and look closely, you will see a field of dreams, the ground on which america's future will be built. that is where intel, the american company that helped build silicon valley, is going to build a $20 billion so my conductor mega site. up to eight state-of-the-art factories in one place. 10,000 new jobs. those factories, the average job is $135 -- $135,000 a year. some of the most sophisticated manufacturing in the world to make computer chips the size of a fingertip that power the world in our everyday lives, from smart phones, the internet, technology we haven't even invented, but that is the beginning. intel's ceo, pat gelsinger, who

is here tonight, i don't know where he is. pat, stand up. [applause] pres. biden: pat came to see me and he told me they are ready to increase their investments from $20 billion to $100 billion. that would be the biggest investment in manufacturing in american history and all they are waiting for is for you to pass this bill so that is not waiting -- let's not wait any longer. send it to my desktop a i will sign it, and we will really take off in a big way. [applause] pres. biden: folks, intel is not alone. there is something happening in america. just look around and you will see an amazing story. the rebirth of the pride that

comes from stamping product made in america, the revitalization of american manufacturing. companies are choosing to build new factories here, when just a few years ago, they would've gone overseas. that is what is happening. ford is investing $11 billion to build electric vehicles, creating 11,000 jobs across the country. gm is making the largest investment in its history. to build electric $7 billion vehicles, creating 4000 jobs in michigan. all told, 370,000 new manufacturing jobs were created here in america last year alone. [applause] pres. biden: powered by people i have met like jojo burgess, from generations of union steelworkers from pittsburgh. who is here tonight? where are you jojo? thanks, buddy.

as ohio senator sherrod brown says, -- [applause] pres. biden: sherrod brown says it is time to bury the label "rust belt." it is time to see what used to be called the rust belt become the home of significant resurgence of manufacturing. with all the bright spots in our economy, record job growth, higher wages, too many families are struggling to keep up. inflation was robbing them of gains they thought otherwise they would be able to feel. i get it. that is one of my top priorities, getting prices under control. our economy roared back faster than anyone predicted. the pandemic men businesses had

a higher -- harder time hiring people because of the pandemic. you didn't have people making those themes that went into buildings because they were out. the factories were closed. pandemic disrupted the global supply chain. factories closed. when that happens, it takes longer to make goods and get them to the warehouses and stores in prices go up. look at cars last year. one third of all inflation was because of automobile sales. there were not enough semi conductors to make all the cars people wanted to buy. but guess what? prices of automobiles went way up, especially used vehicles, as well. and so we have a choice. one way to fight inflation is to drive down wages and make americans poorer. i have a better way to fight inflation. bloomberg your costs, not your wages. [applause]

pres. biden: that means make more cars and semi conductors in america, more infrastructure and innovation in america, more goods, moving faster and cheaper, in america. more jobs which can earn a good living in america. instead of relying on foreign supply chains, let's make it in america. [applause] pres. biden: look, economists -- >> u.s.a.! pres. biden: economists call this increasing the productive capacity of our economy. i call it building a better america. [applause] pres. biden: my plan to curb

inflation will lower your cost and lower the deficit. 17 nobel laureates in economics that my plan will ease long-term inflationary pressures. top business leaders, and i believe most americans support the plan. here's the plan. first, cut the cost of prescription drugs. [applause] pres. biden: we pay more for the same drugs produced by the same companies in america than any other country in the world. just look at insulin. one co. in 10 americans has diabetes. in virginia, i met a 13 euros boy, a handsome young man standing up there, joshua davis. he and his dad both have type one diabetes, which means they need insulin every single day. insulin costs about $10 of while to make.

that is what it costs the pharmaceutical company. the drug companies charge families like joshua and his dad up to 30 times that amount. i spoke with joshua's mom. imagine what it's like to look at your child who needs insulin to stay healthy and have no idea how in gods name you will be able to pay for it. what it does dear family or what it does to your dignity, your ability to look your child in the eye, be the parent you expect yourself to be. i really mean, think about that as i think about it. yesterday, joshua is here tonight, but yesterday was his birthday. happy birthday, buddy, by the way. [applause] pres. biden: for joshua, and 200,000 other young people with type one diabetes, that's cap a cost of insulin at $35 a month

so everyone can afford it and drug companies will do very well still. while we're at it, we have great disagreements on this, let's let medicare negotiate the price of prescription drugs. [applause] pres. biden: they already set the price for v.a. drugs. the american rescue plan is helping millions of families to save $2400 a year. let's close the coverage gap and make these permanent. [applause] pres. biden: let's cut energy costs for families. an average of 500 dollars a year by combating climate change. let's provide tax credits to weatherize your home and business. let's be energy efficient to get a tax credit for it.

double america's clean energy production. lower the price of a mac -- electric vehicles, saving $80 a month you will not have to pay at the pump. [applause] pres. biden: folks, third, the third thing we can do is change the standard of living for hard-working folks, cut the cost of childcare. cut the cost of childcare. [applause] pres. biden: folks, if you live in a major city in america, you pay up to $14,000 a year for child care per child. i was a single dad for five years, raising two kids. i had a lot of help though. i had a mom and a dad, a brother and a sister that could help, but middle-class working folks should not have to pay more than 7% of their income to care for their young children.

[applause] pres. biden: my4 plan would cut the cost of childcare in half for those families. and help parents, including many women who left the workforce during the pandemic because they could not afford childcare, to be able to get back to work, generating economic growth. my plan does not stop there. it includes homey long-term care. more affordable housing. pre-k for three euros and four-year-olds. all of these will lower-cost for families. under my plan, nobody -- let me see this again -- say this again --nobody earning less than $400,000 a year will pay an additional penny in new taxes. not a single penny. [applause] pres. biden: i may be wrong, but my guess is if we took a secret ballot on this floor, we would all agree that the present tax

system ain't fair. we have to fix it. i'm not looking to punish anybody. let's make corporations and wealthy americans start paying their fair share. [applause] pres. biden: look, last year, chris coons and tom carper in my distinguished congresswoman, we come from the land of corporate america. we have more corporations than any other say combined and i still won 36 years in a row. even they understand you should still pay a fair share. 55 fortune 500 companies last year earned $40 billion in profit and paid $0 in fedral tax -- federal taxes.

[booing] pres. biden: it is not fair. that is why i presented a 50% minimum corporate tax. in the g7, i was able to be helpful. 130 countries agreed on a global minimum tax rate of --15%, so companies cannot get out of paying taxes at home by shipping jobs overseas. that is why i proposed closing loopholes for the wealthy who do not --pay a lower -- who pay a lower tax rate than a teacher and firefighter. we will grow the economy, lower the cost of families, so what are we waiting for? let's get this done. we all know we have to make changes. [applause] pres. biden: folks, while your attic, -- at it, confirm my

nominees for the federal reserve. they play of critical role in fighting inflation. my plan will not only lower costs and give families a fair shot. it will lower the deficit. the previous administration not only ballooned the deficit with the tax cuts for wealthy corporations, it undermined the watchdogs, the job of those to keep pandemic relief funds being wasted. for member we had those debates about whether or not the watchdogs should be able to see everyday how much money we spend, whether it was going in the right place? in my administration, the watchdogs are back. [applause] pres. biden: we will go after the criminals who stole billions of relief money meant for small billions -- business and millions of americans. the justice department will name a chief prosecutor for pandemic fraud. [applause]

pres. biden: by the end of this year, the deficit will be half what it was before i took office. the only president to do that. lowering your costs meant demanding competition. i'm a capitalist, but capitalism without competition is not capitalism. capitalism without competition is exploitation. [applause] pres. biden: corporations have to compete. their profits go up in your prices go up and they don't have to compete. small businesses and family farmers and ranchers, i knew my republican friends from some of those states. guess what? you have four basic meatpacking facilities. that is it. you play with them? you don't get to pay -- play at

all, and you get a hell of a lot more. moving goods in and out of america. during the pandemic, half a dozen foreign-owned companies raised prices by as much as 1% and made record profits. tonight, i am announcing a crackdown on those companies overcharging american businesses and consumers. [applause] pres. biden: as wall street firms take over nursing homes, quality has gone down. costs have gone up. that ends on my watch. medicare will set higher standards for nursing homes and make sure loved ones get the care they deserve and expect. we will cut costs to keep the economy going strong by giving

workers a fair shot, provide more training and apprenticeships, higher them based on their skills not degrees. let's pass the paycheck fairness act and paid leave. [applause] pres. biden: raise the minimum wage to $15 an hour and extend the child tax credit so no one has to raise a family in poverty. let's increase pell grant and historic support for hbcus. [applause] pres. biden: and invest in what jill, our first lady who teaches full-time, because america's best-kept secret -- community colleges. [applause] pres. biden: let's pass the proactive -- pro act. one a majority of workers want to form a union, they should not be able to be stopped. when we invest in our workers, when we build the economy from the bottom up and the middle out together, we can do something we haven't done in a long time -- build a better america. for more than two

years, covid-19 has impacted every decision in our lives and the life of this nation. i know you are tired, frustrated, and exhausted. millions of people who sit at their dining room table and look at an empty chair. they have lost someone. i also know this. because of the progress we have made in your resilience -- and your resilience and the tools we have been provided by this congress, tonight i can say we are moving forward safely back to more normal routines. we have reached a new moment in the fight against covid-19, where severe cases are down to a level not seen since july last year. a few days ago, the center for disease control and prevention issued a new mask guideline. under the new guidelines, most americans and most of the country can now go mask free. [applause]

pres. biden: based on projections, more the country will reach that point over the next couple of weeks. thanks to the progress over the past year, covid-19 no not -- no longer need control our lives. some are talking about living with covid-19. tonight, i say we will never just accept living with covid-19. we will continue to combat the virus as we do other diseases, because this virus mutates and spreads. we have to stay on guard. here are four common sense steps as we move forward safely. first, stay protected with vaccines. and treatments. we know how incredibly effective vaccines are. if you are vaccinated and boosted, you have a highest degree of protection. we will never give up on vaccinating more americans. i know parents with kids under five are eager to see the vaccine authorized for their children. scientists are working hard to get that done and we will be ready for plenty of vaccines

when they do. we are already -- also ready with antiviral treatments. if you get covid-19, the pfizer pill reduces your chances of ending up in the hospital by 90%. i have ordered more pills than anyone in the world. pfizer is working overtime to get us one million pills this month and more than double that next month. now, we are launching the test to treat initiative, so people can get tested at a pharmacy and receive an antiviral pill on the spot at no cost. [applause] pres. biden: folks, if you are immunocompromised or have some other vulnerability, we have treatments and free high-quality masks. we are leaving no one behind or ignoring anyone's needs as we move forward.

on testing, we have made hundreds of millions of tests available, and you can order them for free to your doorstep. we have already ordered pretests tonight. i am announcing you can order another group of tests at covidt ests.gov starting next week and you can get more tests. second, we must prepare for new variants. over the past, we have gotten much better at protecting -- detecting variants. if necessary, we will be able to develop new vaccines within 100 days instead of many months or years. we will have new stockpiles of tests, macs, and pills, ready if needed. i cannot promise a new variant will not come but we will be ready if it does with everything in our power. [applause] pres. biden: we can end the shutdown of schools and businesses in the tools we need.

it is time for america to get back to work with people working from home and feeling safe and beginning to return to their offices. we are doing that here in the federal government. the vast majority of federal workers who work in person, our schools are open. let's keep it that way. our kids need to be in school. [applause] pres. biden: 75% of adult americans fully vaccinated, and hospitalizations down by 77%. most americans can remove their masks and stay in the classroom and move forward safely. we achieved this, because we provided free vaccines, treatments, test, and masks. of course, continuing this costs money.

i will not surprise you. i will go back to see your --- y 'all. i will send a request to congress. the vast majority of americans have used these tools and may want to again so i expect congress will pass it quickly. we will continue vaccinating the world. we have sent 475 million vaccine doses to 112 countries, more than any nation on earth. [applause] pres. biden: we will not stop. we cannot build the wall high enough to keep out a vaccine. the vaccine can stop the spread of these diseases. we have lost so much to covid-19. time with one another. and worst of all, much loss of life. let's use this moment to reset. to stop looking at covid as a partisan dividing line and see it for what it is, a god-awful

disease. let's stop seeing each other as enemies and start seeing each other for who we are, fellow americans. [applause] pres. biden: we cannot change how divided we have been. it was a long time incoming. but we can change how to move forward, on covid-19 and other issues we must face together. i recently visited new york city police department days after the funerals of officer wilbert mora and his partner, officer jason rivera. they were responding to a 911 call when a man shot and killed them with a stolen gun. officer mora was 27 years old. officer rivera was 22 years old. most dominican americans who

grew up on the same streets that they later chose to patrol as police officers. i spoke with their families. i told him we are forever in debt for their sacrifices and we will carry on their mission to restore the trust and safety every community deserves. like some of you that have been around for a while, i have worked with you on these issues for a long time. i know what works. investigating crime prevention and community policing. cops who walk the beat. who know the neighborhood and came restore trust and safety. let's not abandon our streets or choose between safety and equal justice. let's come together to protect our communities, restore dress,-- trust, and hold law-enforcement accountable. that is why the justice department required body

cameras, banned chokehold, and restricted no-knock officers -- wines for its officers. that is why the american rescue plan provided $350 billion that cities, states, and counties can use to hire more police and invest in more proven strategies. [applause] pres. biden: proven strategies like community violence interruption, trusted messengers, breaking the cycle of violence and trauma and giving young people some hope. we should all agree the answer is not to defund the police. it is to fund the police. fund them. find them with resources and training. resources and training they need to protect our communities. [applause] pres. biden: i ask democrats and republicans alike to pass my

budget and keep our neighborhoods safe. i will do everything in my power to crack down on gun trafficking and ghost guns that you can buy online, assemble at home, no serial numbers, cannot be traced. i asked for proven measures to release gun violence. why should anyone on the terrorist list be able to purchase a weapon? pass universal background checks. [applause] pres. biden: ban assault weapons and high-capacity magazines with up to 100 grounds -- rounds. are the deer wearing kevlar best -- vests? imagine hadley done that with the tobacco manufacturers. state laws -- these laws don't infringe on the second

amendment, they save lives. the most fundamental rights in america is the right to vote and have accounted and look, it is under assault. state after sake -- state, we have been there before. to subvert the entire election. we cannot let this happen. i: the senate to pass the freedom -- i call on the senate to pass the freedom to vote act, passed the john lewis voting rights act, and pass the disclose act so americans know who is funding or elections. tonight, i'd like to honor someone who dedicated his life to serve this country. justice breyer, an army veteran, constitutional scholar, and retiring justice of the u.s. supreme court. justice breyer, thank you for your service. [applause]

pres. biden: stand up. thank you. we all know, whatever your ideology, one of the most serious constitutional responsibilities are president has is nominating someone to serve on the united states supreme court. as i did four days ago, i nominated the circuit court of appeals ketanji brown jackson, one of our nation's top legal minds, who will continue justice breyer's legacy of excellence. [applause] pres. biden: the former top litigator in private practice, former federal public offender -- defender, from a family of public school educators and police officers, a consensus builder. she has received a broad range

of support since her nomination, including the fraternal order of police and former judges appointed by democrats and republicans. folks, if we are to advance liberty and justice, we need to secure our border and fix the immigration system. [applause] pres. biden: and you might guess i think we can do both. our border, we installed new technology like cutting-edge scanners to better detect drug smuggling. we have set up joint portals with mexico and guatemala to catch more human traffickers. we are putting in place dedicated immigration judges so families fleeing persecution and violence can have their cases heard faster and those who don't can be sent back.

we are screening. we are securing commitments and supporting partners in south and central america to host more refugees and secure their own borders. we can do all this while keeping lit the torch of liberty that has led generations of immigrants to this land. my forbearers and many of yours. provide a pathway to citizenship for dreamers, those on temporary status, farmworkers, essential workers. revise our laws. [applause] pres. biden: so businesses have workers they need and families don't wait decades to reunite. it is not only the right thing to do -- it is the economically smart thing to do. that is why immigration form is supported by everybody from labor unions to religious leaders to the u.s. chamber of commerce. let's get it done once and for all. [applause] pres. biden: folks, advancing liberty and justice also requires protecting the rights

of women. the constitutional right affirmed by roe v. wade, standing president for half a century, is under attack as never before. we want to go forward, not backward, and must protect access to health care. preserve a woman's right to choose. continue to advance maternal health care for all americans. [applause] pres. biden: folks, for our lgbtq plus americans, let's finally get the bipartisan equality act to my dusk. [applause] pres. biden: the onslaught of slate laws -- state laws targeting transgender americans and their families is simply wrong. i said last year especially to , our younger transgender americans, i will always have your back as your president, so you can be yourself and reach your god-given potential. [applause] pres. biden: folks, as i just

demonstrated, we agree on a lot more things and we acknowledge. i signed 80 bipartisan bills into law last year, from preventing government shutdowns to protecting asian americans from still-too-common hate crimes to reforming military justice. soon, we will strengthen the violence against women act that i wrote three decades ago. [applause] pres. biden: it is important for us to show the nation we can come together and do big things. tonight, i am offering a unity agenda for the nation. four big things we can do together, in my view.

[applause] pres. biden: there is so much we can do. increase funds per for brunch and -- prevention, treatment, harm reduction, and recovery. get rid of outdated rules that stop doctors from prescribing treatments. and stop the flow of illicit drugs by working with state and local law enforcement to go after traffickers. if you are suffering from addiction, you should know you are not alone. i believe in recovery and i celebrated 23 million americans in recovery. second, let's take on mental health, especially among our children whose lives and education have been turned upside down. the american rescue plan gave schools money to hire teachers and help students make up for lost learning. irg every parent to make sure your school does just that -- i urge every parent to make sure your school does just that. sign up to be a tutor or mentor. children were also struggling before the pandemic.

bullying, violence, trauma, and the harms of social media. as frances haugen, who is here with us tonight, has shown, we must hold social media platforms accountable for the national experiment they are conducting on our children for profit. [applause] pres. biden: folks, thank you. thank you for the courage you showed. it is time to strengthen privacy protections. ban targeted advertising to children. demandtec companies stop collecting personal data on our children. and let's get all americans the mental health services they need. more people can turn for help and full parody between -- parity between physical and mental health care. [applause]

pres. biden: the third piece of that agenda is to support our veterans. [applause] pres. biden: veterans are the backbone and the spine of this country. they are the best of us. i have always believed that we have a sacred obligation to equip those we send to war and care for those in their family and when they come home. by administration is providing assistance with job training, housing, and helping lower income veterans get the a care debt-free. our troops in iraq and afghanistan have faced many dangers. one being stationed at bases, breathing in toxic smoke from burn pits. [applause] pres. biden: many of you have been there. i have been in and out of iraq and afghanistan more than 40 times. the burn pits that incinerates waste, the waste of war, medical , and hazard material, jet fuel, and so much more. and they come home, many other

worlds fittest and best trained warriors in the world. never the same. headaches. numbness. dizziness. i canceled i would put them -- a cancer that would put them in a flag draped coffin. i know. one of those soldiers was my son, major beau biden. i don't know for sure the burn pit he lived in, but he was there in iraq and earlier than that, it was the cause of his brain cancer, the disease of so many troops. i'm committed to find out everything we can, committed to military families like daniel robinson from ohio, the widow of heath robinson, born soldier, army national guard, combat medic in iraq, stationed near

baghdad yards from burn pits the size of football fields. danielle is here with us tonight. he loved going to ohio state football games. [applause] pres. biden: he loved building legos with their daughter with cancer from prolonged exposure to burn pits. danielle says heath was a fighter until the very end. he did not know how to stop fighting. neither did she. through her pain, she found purpose and demanded we do better. tonight, danielle, we are going to do better. the v.a. is pioneering new ways

of linking toxic exposures to disease, already helping more veterans get benefits. tonight, i'm announcing we are expanding eligibility to veterans suffering from nine respiratory cancers. i am also calling on congress to pass a law to make sure veterans devastated by toxic exposures in iraq and afghanistan finally get the benefits and comprehensive health care they deserve. [applause] pres. biden: and fourth, and last, let's end cancer as we know it. this is personal to me and jill and kamala and so many of you.

so many of you have lost someone you love, your wife, son, daughter, mom, dad. cancer is the number two cause of death in america, second only to heart disease. last month, i announced the plan to supercharge the cancer moonshot. our goal is to cut cancer death rates by 50% over the next 25 years and i think we can do better than that. turn cancers from death sentences into treatable diseases. more support for patients in their families. to get there, i call on congress to fund what i call arpa-h, advanced research projects agency for health. [applause] pres. biden: patterned after the defense department, darpa. projects that have led in darpa are the internet, gps, and so

much more to make our forces more safer and wage war with more clarity. arpa-h will have a singular purpose to drive breakthroughs in cancer, alzheimer's, diabetes, and more. a unity agenda for the nation. we can do these things. i don't see a partisan next to any of those things. [applause] pres. biden: tonight, we have gathered in this sacred space, the citadel of democracy, this capitol, generation after generation of americans have debated great questions amid great strife and have done great things. we have fought for freedom, expanded liberty, debated their totalitarianism and terror. we built the strongest, freest, and most propersj -- prosperous

nation the world has ever known. . . now as our. our responsibility. our test of resolve and conscience, of history itself. it is in this moment our character of this generation's form, our purpose is found, our future is forged. i know this nation. we will meet the test. protect freedom and liberty. expand fairness and opportunity. we will save democracy. as hard as those times have been, i am more optimistic about america today it then my whole life because i see the future within our grasp. i know there is simply nothing beyond our capacity. we're the only nation on earth that has always turned every crisis we have faced into an opportunity. the only nation that can be defined by a board, possibilities. so on this night, on our fort -- 245th year as a nation, i have

come to report on the state of the nation -- the state of the union. my report is this. the state of the union is strong, because you, the american people, are strong. [applause] pres. biden: we are stronger today than we were a year ago. we will be stronger year from now than we are today. this is our moment to meet and overcome the challenges of our time and we will, as one people, one america, the united states of america. god bless you all. may god protect our troops. thank you. go get him. [applause] >> we meet tonight in america that has lived through two of the hardest years the nation has ever faced. president joe biden delivers his first date of the union address

to a largely unmasked session of congress. the president spoke for an hour, almost to the minute, covering everything it from the war in ukraine, covid, inflation, his economic agenda, and crime. he proclaims the state of the unit is strong,. because you, the american people are strong. we hear the republican response. it will be delivered in a few moments by isla governor kim reynolds. joe mathieu in new york, joined boy -- by our washington correspondent on capitol hill. as we prepare for the response, the president proposed cutting energy costs. early on in the speech. it costs for families by an average of $500 a year by combating climate change. this happened as wti crude is

above $108 a barrel. we learned the u.s. will release more oil from the strategic reserve. it is not a contradiction? >> it is almost shocking in the sense that the state of the union is about domestic policy but he opened talking about putin and putin's miscalculation and how prudent. the west was not ready but he is saying the united states and its allies were ready for president putin. you see the oil market. they are unrelenting, climbing higher everyday. you talked about the need to move on the strategic petroleum reserve to help quell some of that. also, this plays into what the president has campaigned on. he wanted to be a climate president and is now a wartime president. if the west could loosen

their dependence on fossil fuels, and when he talked about weatherization, he is talking about the next stage of moving ahead with a energy transition. >> republicans of course course have blamed joe biden's energy policy, democrats' demo -- energy policies, for bringing us to this moment. has anything changed that perception? >> what the republicans are want to come back out in their response is going to be about inflation and higher gasoline prices. republicans are really going to the fact that there has been a moratorium on drilling in federal lands. this administration does want to talk about climate change. they want to talk about reducing our need for fossil fuels. republicans will want to attack that but the fact is there are 9000 -- i look this up today -- 9000 leases that are free right

now, that oil companies can going grab. the issue oil companies have right now, part of it is because they really struggled when prices were negative. they are returning money to shareholders and not investing in drilling. the republicans are going to say the administration hasn't welcomed them to invest in drilling. >> president biden, as you can hear, making his way out of the house chamber. emily wilkins with us from our washington bureau. we heard a lot from pres. on what is left of his economic agenda, paid leave, the expanded child tax care credit, some of the other issues part of the build back better bill that never got past on capitol hill despite months of wrangling. did he change anything on that front tonight? is this happy talk or could he breathe new life into these items? emily: democrats were hoping

this would be an opportunity to breathe new life into some of these pieces. i think the interesting thing here, joe, is what i was looking for and listening for, president biden highlighted one theme. telling members of the party, you want to pass one piece, this is the piece to focus on. we did not hear that. he talked about lowering the cost of prescription drugs bet it became a laundry list that was basically the entire build back better legislation. we will see if there is some movement on prescription drugs. i have talked toad lawmakers who think we can get republicans on this or don't need reconciliation to move forward. as far as highlighting one thing and telling lawmakers to move forward on just that, i didn't hear in this speech. joe: we have heard a lot of these lines before from the president's speeches about inflation and social spending and building back better which by the way, he did not use separated. he said rebuilding america.

at the beginning of the speech, as he opened with the war in ukraine, both sides rose in support. it turned into a kitchen sink speech in the back half of what we heard. >> he was successful tonight. as you pointed out, he found common ground with the room in the world frankly by opening it up on ukraine. very unusual, as reported he would start with the foreign policy segment. then, i think he bookended it by actually closing with that ray of moonshot cancer and things like that that he said, look, these will be bipartisan. we agree on that. he started and ended the speech with the joe biden that campaign for president as the bipartisan candidate for president. in between, he pivoted to partisanship.

there were few opportunities for both democrats and republicans to stand up and applaud in the center of the speech. it is interesting he continued to flaunt policies that he knows, in the next 12 months, will not see daylight in the house or senate. joe: that is the issue here. you and i were following along here with what the president is saying, in speeches that we have largely heard before. we went through every element of build back better without axley calling it that. we went through voting rights reform. we got to crime and the other issues he has spoken about. they got everything into the speech and kept it into an hour amazingly. our progressive democrats leaving the room feeling something changed tonight? >> we will have to hear what they have to say in the rebuttal or rejoinder. there was a little bit of something in the speech for everyone and not just democrats. republicans as well. he talked about funding the police.

this was a laundry list in the second half of the speech. to me, this was two speeches. it started strong with the critical challenge the world is facing as it pertains to an issue joe biden is passionate about, the challenge of autocracy versus democracy. it morphed into this very partisan laundry list of domestic policy issues he would like to pursue. to me, i have to say from a speech perspective, it was traditional joe biden, but i think he missed an important moment. this is the last big speech joe biden will get, the last major audience he has for the midterm elections. i am not sure he changed on the domestic front any hearts or minds. i think he had done a better job at saying we need to distort -- restore democracy abroad did not home and narrow the focus. we don't need a laundry list. we need a passionate president.

we listened to president zelensky in ukraine. some of that passion here would have helped. i did. not think it was joe biden. . that is what i have to say. joe: annmarie, with regard to the top of the address, but everyone here is agreeing with this for -- strongest portion was the war in ukraine. one of the big standing ovations on both sides, democrats, republicans, had to do with the focus on the russian oligarchs, a dedicated task force that will go after the crimes of russian oligarchs. we will see zero yachts, private jets, luxury apartments. we are coming for your ill begotten gains. what will this lead to? annmarie: it will lead to more sanctions on the wealthiest and the riches, the most elite in russia. these are the men, and i say men because if you look at the past video in vladimir putin called

these oligarchs to the kremlin, it was only men in the room. we know who they are. ceo's. we know them. we know they are close to president putin the fact of the matter is most people think you can go after these people and it will not change what president putin is doing right now and potentially, he is going to do it but the west will try to go after these individuals to try to change his position in what is going on with the kremlin because they do have some power when it comes to decision-making in russia, or they had in the past, potential he now that is waiting. joe: the president went on to talk about a number of issues with regard to the war in ukraine but one of them as we expected was an explicit reminder that our forces are not

engaged and will not be engaged on the ground in europe. he says we have mobilized american forces in case putin continues to move west. as you know, there is a movement in the u.s., at least from lawmakers, to get a use of thor's -- force authorization that will codify the fact that american troops will not be put into the theater of combat in ukraine. does that gain momentum tonight? emily: to a certain extent, we just need to see the history of these authorizations, because congress has gone through this reawakening of when they should use them. they are really trying to put forward the power that has when it comes to where the u.s. deploys its military. at this point, when i talked to lawmakers about what needs to be done in ukraine, it seems most people are behind the president's thinking that at this point, we cannot put american soldiers in ukraine that would open up to big of a risk part -- for potential

larger war with russia and the appetite is there with the american public. it is a question about whether that will be seen. i think the things to watch right now in congress are how much aid they wind up putting two ukraine. we saw earlier, the president getting a hug from the top appropriate her in the house. she was on with myself and jackson patrick on bloomberg radio today. we asked her about what amount she would want to give to ukraine. the white house put forward $6.4 billion. she said she would be open to more than that, closer to $10 billion in military and humanities. aid for ukrainians. joe: having the ukrainian ambassador to the u.s. sitting with the first lady was a dramatic optics. we knew she would be with the president this evening in this terrible our for the people of ukraine, with an eye on energy prices. in the matter of inflation, i

asked you before the address, the president is reassuring the american people he can do something to fix this. >>'s effort at trying to spell out a fiscal plan to tackle inflation was what i would expect. we said he needed to be very clear and enunciate a specific plan. the things he described are probably not going to have that big an impact on inflation. i'm surprised he did not spend more time talking about the federal reserve and the efforts they have underway and do a little bit more than just say a quick throw outlined to get his nominees through congress and talk about the team, the government efforts to try and actually -- he hit a lot of the inflation talk and things like going after ocean tanker companies and things like that. naturally the amount -- aggregate -- average american

will get what he is talking about so it will be interesting to see how they follow-up. day two is almost the most important time. if he goes out tomorrow and starts talking about his plan to battle inflation, he has a chance to make it stick. if he pivots to something else, i think it will be lost in translation. joe: special coverage of the state of the union on bloomberg. you can watch president biden make his way out of the house chamber and standing by for the republican response, i will gov. kid were -- kim reynolds. one of the lines that popped out to me was classic joe biden, one he has spoken around in different words. he talks about how his father told them when he was a kid to be ok. he looked at the american people tonight and set i want you to know that we are going to be ok. classic joe biden but did anyone buy it? >> it is classic joe biden. it is the empathetic joke -- joe biden that is his strong suit and it is important he keep that

front and center. polling is one of the areas where people across the higher -- aisle respect joe biden and his life experience. i have to say i did not know that translated into issues like inflation. as you look at the polls, the number one issue on voters' minds, it is inflation and he used language like increasing productivity capacity in economics. that is something that will be lost on many voters. joe: try pulling that. jeanne: she needs to translate that into the empathetic joe biden. there is a big divide. the economic numbers are strong. he talked about the strong numbers. we are seeing that in the polling. at he needed to do tonight and needs to do on the road tomorrow is tell the american public why the divide exists and how to

curb it or he ends up george bush i. the economy is getting better but the voters don't see it so they moved to bill clinton. democrats have to be very concerned about this inflation message that came out tonight. joe: congressman jim mcgovern, chair of the rules committee, quoted as saying after the speech, republican arguments that blocking the keystone pipeline with regard to energy policy has made the u.s. more dependent on russian oil, a bunch of bs, i will not say the words, in its entirety like he did. he said keystone was never finished. it is he right? annmarie: he is right. it was not built before president biden went in and they got rid of it. when you saw the president talk about tapping the strategic petroleum reserve because prices

are high and he wants to mitigate consumers at the pop and pivot to setting tax credits and money and investments to weatherize your homes and businesses, so we don't have to be reliant on foreign oil, because the u.s. is a massive producer. on oil and fossil fuels in general, and when it comes to russia, the president will get pushed back in the sense that u.s. is still importing russian crude. we import 600,000 barrels of product, 200,000 is the actual crude. the rest is product. what was so striking in that is that one third, canada and mexico and before saudi arabia. you have members of congress on both sides of the aisle saying the u.s. should immediately sanction or curb those imports from russia and potentially, joe, that will be the topic de jure on capitol hill. joe: if we can talk about that for a moment, lawmakers never saw eye to eye on sanctions so

we did not get any from capitol hill. this is been an admission -- and administration effort. the senate foreign relations committee came within the young --one yard line. will this renew an effort to codify sanctions as they stand or another effort through legislation? annmarie: lawmakers' attention is on russia and they want to make sure they respond in the most aggressive way they can, short of sending troops there. i think there is a discussion to be had, one that we saw unfolding on capitol hill today, about the u.s. provides that they are still buying russian oil and whether or not that is something that should continue. you have heard a lot about that. i think this is a conversation, as annmarie pointed out, that will continue to develop in the coming days. we look to see, what if any legislation passes. for sure, we know we will see some support.

we don't know at this point that that will come with additional sanctions. joe: we expect to hear the president has exited the chamber so we're a few moments away from governor kim reynolds delivering the republican response. rick davis, kim reynolds is known for opposing covid mandated vaccine mandates, mask mandates, keeping schools open. should she start by congratulating joe biden or joining her there? rick: i don't know if she will congratulate joe biden for that. that is a bit of a nuanced kind of head tilt. there is no question he would jump on board the train tonight. this was the biggest pivot he made in tonight's speech, embracing the change in public attitude toward covid and mandates. she certainly will talk about the fact that we did not need to do as many of these mandates as the federal government insisted in the democratic party in particular. she could talk about her experience there but she will talk about a lot energy, too.

fracking in iowa is not happening much these days and she will want to bring that issue up around energy and pride -- try to put heat on this administration to unlock that capacity so we don't have to be so reliant on imports from russia. >> with regard to covid, the president said we will never just accept living with covid-19. that's not declaring victory over the virus, is it? >> it's not. i think he learned a lesson. he announced in july we had a victory over it. that came back to haunt the administration. they did not want to make that mistake again. the battle with covid is an area where the president rightly reserves -- rightly deserves a lot of credit. it was president trump who helped get the vaccine in order.

it was president biden who helped deliver it to americans. i think his tone on covid was right, that we do not know what will happen. there could another wave, god forbid, and he is right to prepare the american public for that. >> didn't he make the loudest statement about covid tonight by showing up without a mask? >> he did. ted cruz tweeted earlier it was a state of the union miracle that the cdc had announced they could go mask list, and the president, vice president, and the speaker and most members of congress took advantage of that. i think it was an important sign he said the american public is tired of the mass, so the fact they are now action on in congress i think was an important statement for the president to make. >> at least turned the corner, if not won the war. as we wait to hear the republican response from governor reynolds, energy policy, to rick davis' point, is going to be part of this.

does she have to walk a fine line between supporting the united states effort to support ukraine but also to point a finger at joe biden over his own energy policy? >> i think she will do exactly that, right? it will be first, we support the administration, we support the sanctions. i think they may even give the white house a nod for sanctioning nord stream 2, which is something the republicans have been begging the administration to do, and that got a welcoming response in a statement immediately in my inbox from senator ted cruz, and i think they will use the opportunity to talk about higher prices. >> we go to iowa now. >> i'm kim reynolds, governor of the great state of iowa. like you, i just watched the president's state of the union address. i listened as a mom and grandmother of 11 who is worried our country is on the wrong track. we are one year into his presidency, and instead of moving america forward, it deals

like president biden and his party have sent us back in time to the late 1970's and early 1980's when runaway inflation was hammering families, a violent crime wave was trashing our cities, and the soviet army was trying to redraw the world map. even before taking the oath of office, the president told us that he wanted to "make america respected around the world again and to unite us here at home." he has failed on both fronts. the disastrous afghanistan withdrawal did more than cost american lives -- it betrayed our allies and emboldened our enemies. north korea is testing missiles again at an alarming rate. the speaker of the house recently warned our olympic athletes not to speak out against china, and now russia has launched an unprovoked full-scale military invasion of

ukraine. an attack on democracy, freedom, and the rule of law. now all americans must stand united in solidarity with the brave people of ukraine as they courageously defend their country against putin's tyranny as they fight for their freedom, but we should not ignore what happened in the run-up to putin's invasion, waving sanctions on russian pipelines while limiting oil production here at home, focusing on political correctness rather than military readiness, reacting to world events instead of driving them. weakness on the world stage has a cost, and the president's approach to foreign policy has consistently been too little too late. it is time for america to once again project confidence. it is time to be decisive. it is time to lead, but we

cannot project strength abroad if we are weak at home, and that is what i want to discuss with you here tonight. the president and democrats in congress have spent the last year either ignoring the issues facing americans or making them worse. they were warned that spending trillions would lead to soaring inflation. they were told their enter r.g. prices -- anti-energy prices would send gas prices to new heights, but they plowed ahead anyway, raising the price at the pump by 50% and pushing inflation to of for-year high. for decades ago when our nation was last reeling from inflation, i was a young, working mom just starting out. my husband kevin worked days while i watched our girls, and then we would literally switch. we would pass in the yard as he was coming home and i was leaving to work evenings at the grocery store. from across that checkout counter, i saw the pain of

inflation on my neighbors' faces. i saw what happens when prices rise faster than wages. the biden administration believes inflation is a "high-class problem." i can tell you it is and everybody problem. i saw moms and dads' paychecks by them less and less. i saw working people choose whist -- which essentials to take home and which ones to leave behind. now president biden's decisions have a whole new generation feeling that same pain. when i took the oath of office five years ago, i promised iowans that i would never lose sight of who i was working for, that i would not become detached from the problems they were facing, from the problems that i have based myself, but you don't have to check groceries to see what high inflation does to people. you just need to step outside of the d.c. bubble, talk to americans about what is on their

minds, ask them, what are your concerns? what keeps you up at night? and they will tell you. i can tell you what's not on that list. they won't tell you that spending trillions more and bankrupting their children is the answer to their problems. they won't tell you that we should be paying people not to work, and they certainly won't tell you that we should give billions in tax giveaways to millionaires and billionaires in democrat-controlled states like california, new york, and new jersey, but that's what the biden administration has been pushing for over the last year, and that's all part of build back better. thankfully, the president's agenda did not pass because even members of his own party said enough is enough. well, the american people share that view. enough is enough. and it is not just with d.c.

spending. americans are tired of the political class trying to remake this country into a place where an elite few tell everyone else what they can and cannot say, what they can and cannot believe . they are tired of people pretending the way to end racism is by categorizing everybody by their race. they are tired of politicians who tell parents they should sit down, be silent, and let government control their kids' education and future. frankly, they are tired of the theater. when politicians do one thing when the cameras are rolling and another when they believe you cannot see them, where governors and mayors and force mandates but do not follow them, where elective leaders tell their citizens to stay home while they sneak off to florida for sun

fun, where they demand that your child wear a mask but they go mask less. you have heard the excuses -- they were just holding their breath -- but it is the american people who are waiting to exhale , waiting for the insanity to stop. we now live in a country where violent crime is out of control. liberal prosecutors are letting criminals off easy, and many prominent democrats still want to defund the police. you know, it seems like everything is backward. the biden administration required vaccines for americans who want to go to work or protect this country, but not for migrants who illegally cross the border. the department of justice treats parents like domestic terrorists , but looters and shoplifters roam free. the american people are left to feel like they are the enemy. this is not the same country it

was a year ago. the president tried to paint a different picture tonight, but his actions over the last 12 months don't match the rhetoric. it is not what he promised when he took office, but it does not have to be that way. there is an alternative. across the nation, republican governors and legislators are showing americans what conservative leadership looks like, what it means to respect the people we serve, to hear them out, to stand up for them and walk alongside them. we know that our problems require bold action, but we also know that old action does not have to mean government action. it is americans making their own decisions for their own families and future. republican governors faced the same covid-19 virus head on, but we honored your freedoms and

song right away that lockdowns and school closures -- they came with their own significant costs , that mandates was the answer, and we actually listened to the science, especially regarding masks and kids in schools. what happened and is still happening to our children over the last two years is unconscionable. learning loss, isolation, anxiety, depression. in so many states, our kids have been left behind, and so many will never catch up. that's why iowa was the first state in the nation to require that schools open their doors. i was attacked by the left. i was attacked by the media, but it was not a hard choice. it was the right choice, and keeping schools open is only the start of the pro-parent, pro-family revolution that republicans are leading in iowa

and states across this country. republicans believed that parents matter. it was true before the pandemic, and it has never been more important to say out loud. parents matter. they have a right to know and to have a say in what their kids are being taught. families also have every right to live in a safe and a secure community, and that begins with a safe and secure country, but the biden administration has refused to secure our borders. they refused to provide the resources to stop human trafficking, to stop the staggering influx of deadly drugs coming into our neighborhoods. they have refused to protect you. with texas and arizona leading the way, i along with republican governors from several states, have sent resources to the border, and we have actually gone to the border, something

that our president and vice president have yet to do since taking office. on the economy, the contrast could not be more stark. while democrats in d.c. are spending trillions sending inflation soaring, republican leaders around the country are balancing budgets and cutting taxes because we know that money spent on main street is better than money spent on bureaucracy. today, i signed legislation that eliminates iowa's tax on retirement income and sets our tax rate at 3.9%. that's less than half of what it was just four years ago. and it should not come as a surprise that out of the top 20 states with the lowest unemployment rate, 17 have republican governors. republicans may not have the white house, but we are doing what we can to fill the

leadership vacuum, and on the issues affecting americans, republicans are leading. we are standing up for parents and kids. we are standing up for life. we are keeping our communities safe and thanking those in uniform. we are fighting to restore america's energy independence, and that includes biofuels. we are getting people back to work, not paying them to stay home. most of all, we are respecting your freedom. behind me stands iowa's capital where we display our state motto , our liberties we prize, and our rights we will maintain, and those are not just empty words. it is a belief that the greatness of this state and this country lies in our people, not government. you should not have to wake up every morning and worry about

the next thing the government is going to do to you, your business, or your children. if we as elected leaders are doing our job, then the government is working well but operating in the background. it is supporting the ingenuity and spirit of our people, not drowning them out. it is keeping them safe, not restricting their freedom. that's what i believe. that's what republicans believe, and that's what republicans are doing. i am so blessed to be the governor of iowa where people are humble, hard-working, and patriotic. we take care of each other, and, yes, we are, as they say, iowa nice, but you don't have to be from iowa to see that those are the values of america at its best. all of america. over the last few years, i put

my eighth in islands, and they have not let me down. i encourage this president to do the same, to put his faith in you, the american people, who have never wavered in your belief in this country regardless of who leads it, because you know, you've shown that the goal -- the soul of america is not about who lives in the white house. it is men and women like you in every corner of this nation who are willing to step up and take responsibility for your communities, for your neighbors, and ultimately for yourselves by that most important measure. the state of our union is indeed strong. thank you, god bless you, and god bless the united states of america. >> the republican response from

iowa governor kim reynolds live from des moines following president eitan's first state of the union address. i'm joe mathieu in new york. thanks for being with us in our special coverage on bloomberg, referring to inflation, social conflict, and an emboldened soviet union. she opened by saying the president and his party have brought us back in time to the 1970's. we are joined this evening by washington correspondent annmarie hordern. jeannie sends anna with me in new york. rick, i'm going to start with you as our long-term republican strategist and some of the notes she touched there, saying president biden failed to make the u.s. respected again around the world as he had promised, pointing to the withdrawal from afghanistan, missile tests in north korea, now a full-blown war, as she says, in ukraine. is that a true assessment?

rick: it is a little trickery. putin has already been a problem. he was a bigger problem probably in the last administration, even though he had not admitted anything. her tactic was released both barrels at once at the beginning of the speech. do not let eitan have a moment to sit on his laurels, went right after him on the foreign policy side but then billy pivoted to her domestic agenda, which is less government and more freedom and, you know, shout out to parents. it is really the messaging around the midterm campaign for republicans outside the beltway, and in that regard, i thought she did a pretty good job of articulating what the concepts are. she talked a little bit about her covert response, but nothing heavy. she kept it light. stung like a b in the beginning and stuck to the talking points at the end.

joe: interesting to hear a republican response begin with international politics, geopolitics, just like the president did, but like rick pointed out, got quickly to covid, struck some of the things we heard from glenn youngkin in his campaign, no governor of virginia, speaking directly to parents. he said what has happened to our kids has been unconscionable. how does joe biden -- more broadly, how does the democratic party under that perception? >> this is what republicans feel will be one of their key tactics to pull moderates and democrats that are moderate. the president has been very successful when it comes to combating the pandemic, and republicans are frustrated with some of the mandates and other things, but the president has got to come back and democrats have got to come back and talk about what kept us all safe during this, you know, fraud

time -- fraught time. she was using a tactic which is widely used, this insider/outsider tactic. all these people in the swamp as trump would say, cannot match what we are doing is governors. we are actually on the ground working. there are democratic governors who have got to come back as well and talk about what they have done successfully to combat covid. democrats have responses to this, but because of youngkin and the new jersey race, they do feel that this is a winning strategy on the republican side. joe: let's get to policy for a moment. the governor said that this president is focused on political correctness instead of military readiness. we know that in fact there was a greater defense budget passed in the national defense authorization act then we have ever seen. hasn't this president invested in the military, or is she right? anne murray: he has.

he is actively sending troops and reorganizing troops in germany to, say, move them to poland or baltic countries to bolster the eastern flank of europe as a precaution for what we are seeing in terms of eastern europe and what russia is doing in terms of their invasion, which we should note, as this is going on, reports are that it is becoming even worse for the ukrainian people right now in terms of what is going on in kyiv, so that was an interesting point, given the fact we do have this president actively talking about deployment of troops to nato countries at this moment in time . joe: the first time we heard the words "build back better" was not in president biden's speech but just then in the republican response from governor reynolds. is that a brand that will haunt him for the rest of this midterm election year? emily: i think it depends what,

if anything, happens. certainly when you talk about what will be discussed during midterms, but i think we saw the back-and-forth tonight. it will be about crime, police, education. i think governor reynolds really laid out some of the talking points we are going to hear again and again in races across the country from republican candidates. i was talking with a democratic lawmaker and was asking what he thought about the future of build back better and the policies that biden laid out, and he said it all depends on what joe manchin thinks. if joe manchin thinks something can go ahead, we are ready to do it, but it is really in his court right now. joe: president biden's first state of the union address, he mentioned that open, as you heard and saw, with words about ukraine, and it was a fairly extended past, the first third

or so of his speech. >> a russian dictator invading a foreign country has costs around the world, and i'm taking robust action to make sure the pain of or sanctions is targeted at the russian economy. >> those sanctions could take time to have an impact. how much time does president biden have for people to see this working? anne murray -- annmarie: the sanctions are working in the sense we have seen a collapse in the ruble. in terms of the sanctions hitting the russian economy, we are seeing that pretty instantaneously. also the fact put in is going to have a much harder time getting those reserves he built up over the years. the issue in terms of what the president said, he is trying to mitigate the costs of those

sanctions, the hard penalties at the kremlin, we are not seeing that just yet. we are seeing it will potentially be higher costs, and we have talked a number of times on the program about oil and gas, but just today, some of the highest prices on the chicago exchange in terms of wheat futures, hitting the highest since 2008, that is global inflation for food. these are issues he will have to deal with mystically. joe: that is the immediate story right now. the problem is if this president is investing in apply chains, in lowering prices, and of course, there's crossover, or implementing some new energy policy to lower prices. they take time, and this is an america with a very short attention span. will any of these take effect in time for the midterm elections to maybe loosen the pressure on this administration and the democratic party? rick: you said the key thing, their attention span between now

and november, and that is when the first report card will be on this. he needs movement in all these categories. he needs to be able to see some of these prices start coming down. if you speak -- if it is because he is going after abuses in the system like he said in his speech, there are a number of taskforces that have been deployed to go after people bilking the government and raising prices on the consumer, but at the end of the day, i think he is really kind of relying on the federal reserve to make sure they contain the inflationary spiral we are in, and they were virtually nonexistent today in the speech other than, "get my people through the confirmation process." joe: we only have a couple seconds before we say good night. president says the state of the union is strong. is he right? >> it is getting stronger, as he wants to say. the situation in kyiv, it is a fraught time for the world. joe: this has been our coverage of president biden's state of

the union address. our global markets coverage continues next. thank you for spending part of your evening with us. this is bloomberg. ♪

♪ yousef: this is bloomberg daybreak middle east. our top stories this morning -- >> he badly miscalculated. he thought he could roll into ukraine and the world would roll over. instead, he met with a wall of strength he never anticipated or imagined. he met ukrainian people.