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Speaker 1: All right, Well, indeed, and we can now have a

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Speaker 1: look at what is going on in terms of reaction

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Speaker 1: to what Loretta Mesta was saying, and we can get

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Speaker 1: every note to Bloom Big Economics reporter on those comments,

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Speaker 1: and it's Steve Matthews joining is now. Steve, she was

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Speaker 1: fairly I suppose, emphatic on inflation to say the least. Yeah,

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Speaker 1: that's absolutely right. I heard your analysis she was hawkish

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Speaker 1: and that I couldn't agree more. I'm in Florida where

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Speaker 1: Raphael Boston, Atlanta Fact President was had a brief media

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Speaker 1: availability with reporters after touring St. Petersburg, and he said

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Speaker 1: about a hundred basis points everything is on the table,

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Speaker 1: And while Loretta Master didn't use those exact words, she

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Speaker 1: did say that, you know, we did seventy basis points

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Speaker 1: last meeting, and given how things have evolved, why would

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Speaker 1: we do last, So that that would certainly imply that

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Speaker 1: there's a possibility in her mind that they would go

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Speaker 1: more as well, although actually pointed out they have more

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Speaker 1: data to see, so you know, you have to the

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Speaker 1: two Fed officials who have spoken following cp I definitely

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Speaker 1: kind of leaning into at least the possibility so we

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Speaker 1: don't know where where Chair pal is on on this.

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Speaker 1: And you know, but but the market pricing of seventy

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Speaker 1: basis points and the possibility of a hundred basis points

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Speaker 1: leaves the option open for the FED if the chair

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Speaker 1: in the center of the committee wants to to go

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Speaker 1: in that direction, they certainly have the option. I was

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Speaker 1: a little surprised that, you know, she referred so much

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Speaker 1: to the CPI report. The FED has a lot of data.

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Speaker 1: I mean, we used to always feel that the Fed

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Speaker 1: you had access to more than even we did. Uh,

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Speaker 1: and uh, we know that the pc IS is the

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Speaker 1: most important inflation data for the FED, and there are

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Speaker 1: some more moderate numbers in there compared to the c

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Speaker 1: p I UM. And you'd think that you would sort

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Speaker 1: of hint at some data that could indicate, you know,

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Speaker 1: which way they're going, and said, you just referred to

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Speaker 1: this bad report. Yeah, I think they are taking a

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Speaker 1: cue from Fetchaer Powell who said that, you know, we

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Speaker 1: don't want to slice and dice the inflation data. We don't. Uh,

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Speaker 1: we're not really interested in like looking into every little

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Speaker 1: nuance of the data. When you have nine percent inflation,

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Speaker 1: which is the worst and forty years I got kind

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Speaker 1: of captures your attention, and it's like, Okay, there are

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Speaker 1: some things in there. There's a little bit noisy, and

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Speaker 1: maybe it's overstated and compared to PC or whatever, but

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Speaker 1: it's like, you know that everybody understands it's it's an

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Speaker 1: overwhelmingly bad picture. So that's what they're focused on. One

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Speaker 1: thing that jumped out to me was both Loretta Master

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Speaker 1: in this great interview with Kathleen and Bostick earlier adopted

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Speaker 1: the view that there is no trade off between fighting

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Speaker 1: inflation and in recession, but basically taking up the share

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Speaker 1: pals idea that low and stable inflation is a precondition

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Speaker 1: to a sustainably strong labor market. And the the implication

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Speaker 1: of that is if they're serious about maintaining that, is

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Speaker 1: that once you start getting a faltering a labor market

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Speaker 1: with higher unemployment and a serious slowdown in the job market,

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Speaker 1: well they would be okay with that, because if that's

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Speaker 1: what's required to bring inflation down to bring about a

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Speaker 1: good economy over the long term, then that's the price

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Speaker 1: you would have to pay. And that's a very very

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Speaker 1: hawkish you. I've been pontificating a little bit about this, Stephen.

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Speaker 1: It is this whole notion of having a very tight

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Speaker 1: jobs market in record low consumer confidence, and the two

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Speaker 1: didn't really add up. I just gonna put it. Is

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Speaker 1: it just that people consumers are seeing inflation actually even

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Speaker 1: worse than the numbers suggest. Yeah, it is a little

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Speaker 1: bit of a puzzle. Uh. And you know, even in

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Speaker 1: the separate polling, aside from the confidence surveys, people just

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Speaker 1: hate inflation. And I think that that is uh, you know,

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Speaker 1: you see that in the polling for the Biden administration,

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Speaker 1: you see it in the just the general polling on

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Speaker 1: inflation and what are the issues that are important? And

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Speaker 1: I don't think there was that much of a realization that,

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Speaker 1: even compared to unemployment, there's just this, you know, the

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Speaker 1: visceral hate of inflation and that it affects everybody and

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Speaker 1: every everybody's pocket. And you know, when there's unemployment and

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Speaker 1: a particularly if it's narrowly focused to a couple of industries,

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Speaker 1: it's like it's it's a horrible tragedy for the people

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Speaker 1: who are affected. But most people are not unemployed. But

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Speaker 1: inflation affects everybody, and there's a there's a real negative

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Speaker 1: view on it, alright, Steve good Insights, thank you very much.

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Speaker 1: Steve Matthews, Bloomberg Economics reporter, joining us here live on

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Speaker 1: Bloomberg Daybreak Gay Show