MARGARET BRENNAN: We're joined now by Pete Buttigieg, the Secretary of Transportation. Mr. Secretary, good morning to you.
PETE BUTTIGIEG, SECRETARY: Good morning, everyone. It's great to be with you.
BRENNAN, MARGARET: I'd like to ask you a few questions about your reaction to the events in Buffalo as a representative of the administration. You used to be a mayor. Do you believe domestic terrorism should be made illegal under federal law? Although the president used such phrase, it is not legally binding.
SECRETARY BUTTIGIEG: I'll defer to the President on the legal implications of the terrorism term. But, whether it's called that legally or not, this was terrorism, and this would be a good day for every politician in this country, left, right, and center, as well as every media figure in this country, left, right, and center, to come out and unequivocally condemn white nationalism, so-called replacement theory, and any other hateful ideology that could have contributed to something like this before it happens again.BRENNAN, Margaret: But, in the case of those terms you just mentioned, should there be a federal act that elevates the situation? Is a direct link to terrorism necessary?SECRETARY BUTTIGIEG: We don't know all of the details that fit the legal standards, obviously. What we know is that someone used an AR-15 to go a considerable distance in order to hunt humans, specifically Black people. And we must eliminate such hatred. By the way, we're talking about the availability of the tactical weaponry he appears to have. Nonetheless, as a country, we appear to be having that conversation over and over again.
BRENNAN, Margaret: On a more personal note, I'd like to ask you a question. We've been discussing the nationwide baby formula shortage for months. At home, you have infants. Do you find it difficult to obtain formula?
SECRETARY BUTTIGIEG: This is a very private matter for us. Because we have two nine-month-old children, baby formula plays an important role in our life. And, like millions of other Americans, we've been rummaging through stores, checking online, and calling family in other countries to see what they can ship over. We discovered the answer. For the time being, we're set. But imagine being a shift worker with two jobs, without a car, and having neither the time nor the money to go from store to store. That is why this is such a significant matter, and why it is receiving high-level attention, including, of course, direct involvement from the president.
BRENNAN, Margaret: And Congress will debate this topic this week. Although the President has promised further action, this has been going on for months. There are already problems with the supply chain. Then there's the Abbott factory, which had a whistleblower in September and was recalled in February. It's May. Why has it taken so long, and why did the president appear to be unaware of it on Friday? I guess we could have done something sooner if we had been better mind readers, he said.
SECRETARY BUTTIGIEG: Look, after the recall, the government acted right away. Taking initiatives to help rebalance the availability of formula in the United States, such as increasing WIC program flexibility. More actions are being taken, including an investigation into imports. But, at the end of the day, we're here because a firm couldn't ensure the safety of its plant. That plant has also been decommissioned.
MARGARET BRENNAN: However, as regulators, it is the federal government's role to help ensure the plant's safety.
BUTTIGIEG, SECRETARY Yes, as officials. However, let's be clear. The country is a capitalist one. Baby formula is not made by the government, and it should not be. Formula is something that companies create. And one of those corporations, which appears to have a 40% market share, messed up and is unable to prove that a significant factory is safe and free of pollution. So, for now, the most critical thing is to get that Michigan facility up and running safely. And that is what the company and the FDA are working on. It must be secure and operational as quickly as possible. But there's a difference between a supply chain problem, which involves moving products, and a supply problem, which involves whether they're being produced in the first place. The administration is now collaborating with other businesses in an attempt to boost output. As a result, production has increased, aiding in the compensation process. However, this plant must be brought back online in a safe manner.
BRENNAN, Margaret: We'll talk about that further later in the episode. But, since I know you're not the FDA commissioner, I'd like to speak with you about the areas in which you're more active, namely supply chain and spectrum procurement. How does the administration ensure that the necessary ingredients for a product like formula are available?
SECRETARY BUTTIGIEG: So the facility was shut down because of a lack of ingredients–
MARGARET BRENNAN: No, price is the result of a factor. Even before the recall in February, inflation was one of many variables blamed for months of problems with baby formula.BUTTIGIEG, SECRETARY True, but America has the ability to produce the baby formula we require. What do you believe–
MARGARET BRENNAN: However, you're currently bringing stuff in from Europe.
BUTTIGIEG, SECRETARY: Yes. That is, nevertheless, due to the fact that Again, we have four firms in this country that make almost 90% of the formula, which we should look into-
IS THAT AN OLIGOPOLY? MARGARET BRENNAN:
BUTTIGIEG, SECRETARY Yeah, I mean, it's really a collection of monopolies that has resulted in massive market concentration. By the way, whether we're talking about fertilizer or other aspects of our agriculture sector, this is an issue that the president has brought up in every location he's visited–
MARGARET BRENNAN: There are contracts there as well, because it's part of the food stamp program.
BUTTIGIEG, SECRETARY: Yes.
MARGARET BRENNAN: But it's funded by the government.
SECRETARY BUTTIGIEG: That is precisely why, from the first day of the recall-
MARGARET BRENNAN: My argument is that this isn't just a business concern. In several of these arrangements, the federal government is directly involved.
SECRETARY BUTTIGIEG: It is the obligation of the corporation to shut down a plant because it can't guarantee that it is physically safe from contamination. The regulator's job is to make sure that when it's back online, it'll be safe.
BRENNAN, Margaret: I still have a lot of work to do. I'd like to discuss inflation with you. Gas prices are at an all-time high, with the national average of $445 a gallon. Are you requesting that Americans reduce their driving?
NO, NO, NO, NO, NO, NO, NO, NO, NO, NO, NO, NO, NO, What we're asking Americans to do is acknowledge that we're working on this problem because we're experiencing it ourselves. We all see the pain at the gas station, right?
MARGARET BRENNAN: Should we be driving less in America?
BUTTIGIEG, SECRETARY Look, our goal is to provide Americans with more affordable transportation options. That's why we're raising the fuel economy standards so that cars will be significantly more efficient by the 2026 model year. If you have a gas car, you may only need to fill up three times each month now. Of course, we're also aiming to make electric vehicles more inexpensive, as this has a significant advantage, particularly in terms of protecting families from price volatility–.
MARGARET BRENNAN: The battery components are a supply chain concern as well.
BUTTIGIEG, SECRETARY: Yes. So, are we going to use that as an excuse to do nothing and repeat ourselves indefinitely? Or will we treat it as a work issue? It's something we're looking into. However, we already know that we can get more Americans into these automobiles using existing technologies. And, as we all know, with gas prices on the rise, the president has used the Strategic Petroleum Reserve and ethanol flexibility to attempt to keep prices stable. But we also know that other costs for Americans may be reduced right now. And this is the most important thing I think we need to look at right now, when we're fighting inflation with everything we've got, when we tried to lower the cost of prescription drugs and were blocked by congressional Republicans, and then want to talk about inflation without offering a plan.
MARGARET BRENNAN: However, the general public is uninterested in things that don't work, don't pass, or aren't laws. They're curious in what's going on at their kitchen table and in their wallets right now.
SECRETARY BUTTIGIEG: I believe they are interested in learning what Congress will do to reduce their costs. We're arguing for it–
BRENNAN, Margaret: Let's talk about that because I'd like to ask you about what the administration thinks about some congressional Democrats' proposals, such as Senator Warren's, and Speaker Pelosi's announcement that she's introducing a measure to prohibit firms from knowingly overpricing their products. Jason Furman, the Obama administration's economic adviser, described this as "dangerous and stupid nonsense." Do you think it's absurd?
BUTTIGIEG, SECRETARY I'm not really aware with the legislation's specifics. However, from a management standpoint, I can tell you that there is guidance in the works to combat price gouging when we detect it. In the event that price gouging occurs in the formula or fuel markets-
BRENNAN, Margaret: Is that the case, and if so, how significant is it?
SECRETARY BUTTIGIEG: Look, we all know that we're in a period where Americans are feeling the pinch on a variety of products. And other businesses, particularly oil corporations, have declared that they will not use the permits and production capacity that they have. They have no reason to. Right now, they're very profitable. They don't seem to mind. They are not dissatisfied with their current circumstances. The general populace is dissatisfied with the situation. We've taken action because the president is upset.
MARGARET BRENNAN: Let's leave it at that. Face the Nation, it's great to see you in person, Secretary Buttigieg. Best of luck with the baby formula. We'll get back to you as soon as possible.
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