WEBVTT - Waller Calls for Multiple Rate Cuts; Kennedy Deputy Named CDC Head

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today, Karen.

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<v Speaker 3>We are less than three weeks from the Federal Reserve's

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<v Speaker 3>next interest rate decision, and one of the leading candidates

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<v Speaker 3>to replace j. Powellis FED chair next year is calling

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<v Speaker 3>for a quarter point rate cut, not a half point.

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<v Speaker 3>FED Governor Christopher Waller spoke at a conference hosted by

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<v Speaker 3>the Economic Club of Miami.

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<v Speaker 4>Well, I judge that the FMC should have begun this

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<v Speaker 4>process in July based on the data in hand, I

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<v Speaker 4>don't believe that a cut of larger than twenty five

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<v Speaker 4>basis points is needed in September. Now. That view, of course,

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<v Speaker 4>could change, if the employment report for August do out

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<v Speaker 4>a week from tomorrow points to a substantially weakening economy

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<v Speaker 4>and inflation remains well contained.

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<v Speaker 3>FAT Governor Chris Waller voted against this month's decision to

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<v Speaker 3>hold the Fed's bench great steady. He says he anticipates

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<v Speaker 3>more cuts over the next three to six months. While

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<v Speaker 3>those remarks are the first by a top FED official

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<v Speaker 3>since President Trump moved this week to fire Lisa Cook,

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<v Speaker 3>and now.

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<v Speaker 2>Nathan Matt moved to fire Governor Cook is headed for

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<v Speaker 2>a showdown in court. A federal judge has said a

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<v Speaker 2>hearing for ten this morning Wall Street Time on Cook's

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<v Speaker 2>request for a restraining order to keep her on the

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<v Speaker 2>Fed's Board of Governors. And now Cook is offering an

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<v Speaker 2>explanation for the mortgage dispute at the center of the

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<v Speaker 2>case in her lawsuit against the president. But yet more

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<v Speaker 2>from Bloomberg Legal reporter Eric Larson.

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<v Speaker 5>She did not explicitly deny the allegations, but clearly at

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<v Speaker 5>this stage in the case, they're signaling a potential defense here,

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<v Speaker 5>which is that not only could this be a clerical error,

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<v Speaker 5>but that it wasn't material to any decisions that were

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<v Speaker 5>made on these mortgages, that no one was harmed by it.

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<v Speaker 5>And really that's regardless. It's not cause to fire her

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<v Speaker 5>because these mortgages were done a year before she joined

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<v Speaker 5>the board and has nothing to do with her job.

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<v Speaker 2>And as Bloomberg Legal reporter Eric Larson, meanwhile, the Trump

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<v Speaker 2>administration is putting even more pressure on Cook. Federal Housing

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<v Speaker 2>Finance Agency Director Bill Poulti has sent a new criminal

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<v Speaker 2>referral over a third property in Massachusetts. Poulty says Cook

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<v Speaker 2>originally claimed it was a second home, but later listed

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<v Speaker 2>it as an investment property.

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<v Speaker 3>Meanwhile, Karen, it looks like the Trump administration's plans to

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<v Speaker 3>fast track Stephen Myron's confirmation to the FED Board is

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<v Speaker 3>working out. We get more on that from Bloomberg's Denise Pellegrini.

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<v Speaker 6>The Senate Banking Committee will hold a hearing September fourth

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<v Speaker 6>on Myrinten's confirmation as FED Governor to replace Audreana Kugler

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<v Speaker 6>after she resigned. Myronen will likely be grilled over President

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<v Speaker 6>Hump's economic policies and efforts to influence the Fed. But

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<v Speaker 6>Democrats also say privately they can't block Myron's ascension on

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<v Speaker 6>their own, and under the rules they can only hold

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<v Speaker 6>things up briefly in the committee and then only for

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<v Speaker 6>a few days on the Senate floor. Also, remember no

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<v Speaker 6>Republicans voted against Myron as chair of the Council of

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<v Speaker 6>Economic Advisors earlier this year, meaning Myron could well be

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<v Speaker 6>confirmed as FED Governor before the Bank's two day rate

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<v Speaker 6>setting meeting in mid September. Denise Pelgriny Bloomberg Radio, all.

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<v Speaker 2>Right, Denise, thank you. The shake up at the Centers

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<v Speaker 2>for Disease Control continues. Health and Human Services Secretary Robert F.

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<v Speaker 2>Kennedy Junior has named his top deputy, Jim O'Neill, as

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<v Speaker 2>acting CDC director. This is after the White House fire

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<v Speaker 2>the previous director, Susan Minares, less than a month into

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<v Speaker 2>the job after she confronted Kennedy over his vaccine stance.

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<v Speaker 2>Kennedy says the agency needs an overhaul.

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<v Speaker 7>There's a lot of trouble at CDC, and it's going

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<v Speaker 7>to require getting rid of some people over the long

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<v Speaker 7>term in order for us to change the institutional culture

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<v Speaker 7>and bring back pride and self esteem, make that agency

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<v Speaker 7>the stellar agency that it's always been.

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<v Speaker 2>How Secretary Robert F. Kennedy Junior spoke at an event

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<v Speaker 2>in Texas. Some Senate Republicans have expressed alarm over Manarez

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<v Speaker 2>is firing. The Wall Street Journal report. Senator Built Cassidy

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<v Speaker 2>is called on AHHS to postpone a meeting of its

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<v Speaker 2>Vaccine Advisory Committee next month due to questions about its membership.

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<v Speaker 3>Turning to the economy now, Karen, Inflation is in focus

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<v Speaker 3>this morning with the FED. With the release of the

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<v Speaker 3>Fed's preferred price gauge Bloomberg's Michael McKee reports July's PCE

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<v Speaker 3>print is likely to show quicker inflation.

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<v Speaker 8>The Fed's two percent inflation target is based on the

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<v Speaker 8>PCE index, but today's reading likely won't sway any votes

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<v Speaker 8>at the FED September seventeenth meeting. PCE is put together

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<v Speaker 8>from data collected in other inflation surveys. After the consumer

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<v Speaker 8>and producer price indexes are released, economists can calculate a

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<v Speaker 8>close approximation of what PCE will be. The forecast is

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<v Speaker 8>for a slight decline in month over month inflation and

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<v Speaker 8>no change in the annual figure. Any significant deviation might

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<v Speaker 8>generate a market reaction, but more likely look to the

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<v Speaker 8>September eleventh release of the CPI for guidance on the FED.

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<v Speaker 8>Michael McKee Bloomberg Radio.

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<v Speaker 2>Allright, Mike, thank you well. Futures are lower ahead of

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<v Speaker 2>that key inflation report. Yesterday, the S and P five

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<v Speaker 2>hundred closed above sixty five hundred for the first time.

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<v Speaker 2>Keith Lerner, the chief market strategist at Truest Advisory Services,

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<v Speaker 2>remains bullish on tech.

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<v Speaker 9>From the lows in April, the S and P is

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<v Speaker 9>up thirty percent. The tech sector is up about fifty one.

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<v Speaker 9>The term was still bullsh on technology, with still bullsh

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<v Speaker 9>on the AI theme.

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<v Speaker 2>And truest advisory services Keith Lerner. This is the last

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<v Speaker 2>trading day of August. Over the last seventy five years,

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<v Speaker 2>the S and P five hundred has posted an average

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<v Speaker 2>drop of sevent tenths percent in September, making it the

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<v Speaker 2>worst performing month for stocks.

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<v Speaker 3>Let's see how some individual stocks are performing this morning.

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<v Speaker 3>Karen Shares of Dell are down more than six percent.

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<v Speaker 3>The computer maker reported fewer sales of artificial intelligence servers

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<v Speaker 3>and lower profit margins than analyst estimates. Shares of Marvel

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<v Speaker 3>are down thirteen percent. Data center revenue missed. On the

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<v Speaker 3>flip side, shares of Petco are surging eighteen and a

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<v Speaker 3>half percent. The pet retailer raised its earnings targets for

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<v Speaker 3>the year.

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<v Speaker 2>And now to the latest on the war in Ukraine,

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<v Speaker 2>Nathan German and Chancellor Frederick Mertz says a meeting between

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<v Speaker 2>Ukrainian President Vladimir Zelenski and Russia's Vladimir Putin is unlikely

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<v Speaker 2>to materialize. The news comes as Russia unleashed a new

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<v Speaker 2>wave of drone and missile strikes on Kiev and defiance

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<v Speaker 2>of US calls for an end to the fighting. White

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<v Speaker 2>House Press Secretary Caroline Levitt says President Trump is not

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<v Speaker 2>happy or surprised.

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<v Speaker 10>This killing unfortunately, will continue as long as the war continues,

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<v Speaker 10>which is why the President wants it to end, and

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<v Speaker 10>that's why he's worked harder than anyone to end this war.

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<v Speaker 10>But perhaps both sides of this war are not ready

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<v Speaker 10>to end.

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<v Speaker 2>It themselves, white House Press Secretary Caroline Levitt. Later today,

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<v Speaker 2>senior Ukrainian officials are expected to travel to the US

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<v Speaker 2>to exchange ideas on post war security with members of

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<v Speaker 2>the Trump administration. Time now for look at some of

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<v Speaker 2>the other stories making news in New York and around

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<v Speaker 2>the world, and for never joined by Bloomberg's Michael Barr Michael,

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<v Speaker 2>Good Morning.

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<v Speaker 11>Good morning Karen. Police the Minneapolis say they are looking

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<v Speaker 11>for a clear motive and Wednesday shooting at a Minneapolis

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<v Speaker 11>Catholic church that left two children dead and seventeen others injured.

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<v Speaker 11>The shooter, twenty three year old Robin Westman, died of

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<v Speaker 11>an apparent self inflicted gunshot wound at the scene. Police

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<v Speaker 11>characterized Westman as full of hate. Authorities say they recovered

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<v Speaker 11>one hundred and sixteen rifle rounds at the scene, along

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<v Speaker 11>with three shotgun shells. Meanwhile, the father of one of

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<v Speaker 11>the two children killed in the shooting is asking for

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<v Speaker 11>his son to be remembered for who he was and

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<v Speaker 11>not as the victim of a mass shooting. Jesse Merkle's son,

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<v Speaker 11>eight year old Fletcher Merkele, was killed inside an Unciation

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<v Speaker 11>Catholic church.

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<v Speaker 12>While the whole in our hearts and wives will never

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<v Speaker 12>be filled. I hope been time our family can find healing.

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<v Speaker 12>I pray that the other victims family can find some

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<v Speaker 12>Semblents of the.

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<v Speaker 11>Scene also killed ten year old Harper Moyski. Reverend Al

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<v Speaker 11>Sharpton led a protest march on Wall Street, urging corporations

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<v Speaker 11>to resist the Trump administration's push to rollmack DEEI initiatives.

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<v Speaker 11>Sharpton was joined by thousands of people, including leaders of

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<v Speaker 11>church unions and organizations. Reverend Sharpton called President Trump and

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<v Speaker 11>anti dreamers who want to cut Medicaid and snap to

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<v Speaker 11>pay for tax breaks.

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<v Speaker 13>For the rich, why didn't we come to Wall Street?

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<v Speaker 7>Since you have benefited from Trump.

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<v Speaker 11>We come to tell you your benefit pays a number.

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<v Speaker 1>We're not going back.

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<v Speaker 11>Among those who participated in the march include New York

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<v Speaker 11>Democratic mayoral candidate Zoron Memdani. Many Americans are traveling this

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<v Speaker 11>holiday weekend trip as Iike Sadiaz has a pro tip

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<v Speaker 11>on when you should leave if you're driving.

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<v Speaker 14>Properably, anytime before lunchtime and on Saturday before ten am,

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<v Speaker 14>because Saturday we are expecting between ten am and six

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<v Speaker 14>pm to be extra busy because if people don't want

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<v Speaker 14>to take off work on.

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<v Speaker 11>Friday, gas prices are at a five year low. Global

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<v Speaker 11>news twenty four hours a day, and whenever you wanted

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<v Speaker 11>with Bloomberg News. Now, I'm Michael Barr, and this is

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<v Speaker 11>Bloomberg Karen.

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<v Speaker 8>Thanks Michael.

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<v Speaker 2>Time now for our Bloomberg Sports dating. For that, we

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<v Speaker 2>bring in John Stashower.

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<v Speaker 11>Thanks Daron.

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<v Speaker 15>A blockbuster trade in the NFL, Dallas's pass rusher Michael

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<v Speaker 15>Parsons wanted a new contract, demanded a trade, and he

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<v Speaker 15>got one. He's going to the Green Bay Packers. The

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<v Speaker 15>Cowboys in return get defensive tackled Kenny Clark and first

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<v Speaker 15>round draft picks the next two years. Parsons has already

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<v Speaker 15>agreed to a new deal with the Packers for four

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<v Speaker 15>years and one hundred and eighty eight million dollars a

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<v Speaker 15>US Open match that ended just before two am. It

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<v Speaker 15>lasted four and a half hours. Tommy Paul won five cents.

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<v Speaker 15>That's your Bloomberg Sports update.

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<v Speaker 2>Stay with us. More from Bloomberg Daybreak coming up after this.

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<v Speaker 1>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 1>and around the world on Bloomberg dot com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 6>Good morning.

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<v Speaker 3>I'm Nathan Hager, and President Donald Trump's push for more

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<v Speaker 3>influence on the Federal Reserve is headed for a showdown

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<v Speaker 3>in federal court this morning. A hearing is set for

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<v Speaker 3>ten am Wall Street time on Federal Reserve Governor Lisa

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<v Speaker 3>Cook's request for a restraining order against the President's moved

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<v Speaker 3>to fire her for cause over her mortgages. White House

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<v Speaker 3>Press Secretary Caroline Levitt says, the President is ready.

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<v Speaker 10>He has the cause that he needs to fire this individual.

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<v Speaker 10>He laid it out in the letter that he provided

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<v Speaker 10>to her into the public as well, and so we'll

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<v Speaker 10>continue to fight this battle.

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<v Speaker 3>That was White House spokeswoman Caroline Levitt. And joining us

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<v Speaker 3>now is Terry Haines, the founder of Pangaea policy. Great

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<v Speaker 3>to speak with you this morning, Terry. But that really

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<v Speaker 3>is the question, isn't it whether the president has the cause?

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<v Speaker 13>Good morning, Good morning, Nathan. You know, I'll give you

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<v Speaker 13>a threshold. The threshold is really factual. You know, those

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<v Speaker 13>of us with certain hair color will remember Jack Webb

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<v Speaker 13>and Dragnet talking about just the facts. Well, this is

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<v Speaker 13>just the facts. Whether or not the president can do

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<v Speaker 13>what the President says he intends to do, it depends

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<v Speaker 13>on the facts surrounding the Cook situation. So far, we

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<v Speaker 13>don't have any of those facts, and I would urge

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<v Speaker 13>people not to assume that they understand what's going on.

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<v Speaker 13>It's developing situations still, as recent headlines show, So I'd

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<v Speaker 13>hold off on that. And that also matters for in

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<v Speaker 13>court for standing purposes. If you're asking somebody court not

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<v Speaker 13>to remove you and you haven't been removed, that's another

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<v Speaker 13>level of complexity.

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<v Speaker 11>Yeah.

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<v Speaker 3>Well, we've seen from the lawsuit that Governor Cook has

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<v Speaker 3>filed against this move. She's saying that it could amount

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<v Speaker 3>to a clerical error and that the president's attempt to

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<v Speaker 3>fire her is a power grab that could do irreparable

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<v Speaker 3>harm to the US economy. What do you make of

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<v Speaker 3>Governor Cook's defense.

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<v Speaker 13>Here as it's developing. I think she's ultimately going to

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<v Speaker 13>need to prove that She's not going to have to

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<v Speaker 13>prove that today in court, of course. Firstly, Secondly, I

0:12:26.400 --> 0:12:30.600
<v Speaker 13>think the president's ability to fire for cause here depends

0:12:30.720 --> 0:12:33.880
<v Speaker 13>entirely on what those facts are are. If there's a

0:12:33.880 --> 0:12:36.240
<v Speaker 13>lot more and the behavior is a lot worse than

0:12:36.280 --> 0:12:40.600
<v Speaker 13>has already been reported, then President's case gets stronger. But

0:12:40.640 --> 0:12:42.880
<v Speaker 13>if the case the case is weaker, the case is

0:12:42.920 --> 0:12:46.920
<v Speaker 13>non existent, then the president really doesn't have the ability. Thirdly,

0:12:47.360 --> 0:12:49.520
<v Speaker 13>I think it's a mistake for folks to think that

0:12:49.920 --> 0:12:52.480
<v Speaker 13>this is about Trump versus the FED or Trump versus

0:12:52.480 --> 0:12:56.520
<v Speaker 13>Cook on two regards. One, the FED is a congressional

0:12:56.559 --> 0:12:59.680
<v Speaker 13>agency exercises congressional power, so Congress is going to have

0:12:59.679 --> 0:13:03.640
<v Speaker 13>a lot say about that. And secondly, you're you're in

0:13:03.679 --> 0:13:08.560
<v Speaker 13>a situation here where I don't think they're I don't

0:13:08.600 --> 0:13:12.400
<v Speaker 13>think FED independence today is presented as kind of the

0:13:12.440 --> 0:13:16.120
<v Speaker 13>existential question. You're wrapping up the removal of one governor

0:13:16.200 --> 0:13:19.920
<v Speaker 13>with FED independence. I think you're barking up the wrong tree,

0:13:19.960 --> 0:13:22.000
<v Speaker 13>and I think you're virtual signaling more than a little

0:13:22.000 --> 0:13:22.559
<v Speaker 13>bit Frankly.

0:13:22.840 --> 0:13:25.120
<v Speaker 3>Now, well, there has been some reporting from Bloomberg News

0:13:25.160 --> 0:13:29.120
<v Speaker 3>this week that the President is considering pulling levers on

0:13:29.400 --> 0:13:32.800
<v Speaker 3>vetting a FED bank presidents as well. What could this

0:13:33.000 --> 0:13:35.680
<v Speaker 3>continued scrutiny of the FED bean for markets?

0:13:36.280 --> 0:13:40.800
<v Speaker 13>Well, I think the I understand people are reporting those things,

0:13:40.960 --> 0:13:44.720
<v Speaker 13>and wouldn't surprise me if they're The administration is looking

0:13:44.840 --> 0:13:48.000
<v Speaker 13>at all kinds of alternatives. But at the same time,

0:13:48.400 --> 0:13:51.480
<v Speaker 13>what you've seen with the governor so far, you know,

0:13:51.640 --> 0:13:54.240
<v Speaker 13>in the midst of all the all the penell attacks,

0:13:54.520 --> 0:13:56.520
<v Speaker 13>is that they haven't changed their position, you know, and

0:13:56.559 --> 0:14:00.679
<v Speaker 13>even even a whiller today as you report, suggests a

0:14:00.760 --> 0:14:02.920
<v Speaker 13>quarter point rather than a half point is appropriate. It's

0:14:02.920 --> 0:14:05.560
<v Speaker 13>something which I'm sure doesn't please the White House, although

0:14:05.600 --> 0:14:09.280
<v Speaker 13>he notes that they're more more data will come in

0:14:09.360 --> 0:14:13.360
<v Speaker 13>next week that may change his view. But these folks

0:14:13.400 --> 0:14:17.319
<v Speaker 13>have not shown that they're cowed, number one, so I

0:14:17.520 --> 0:14:21.040
<v Speaker 13>expect them to continue not to be cowed. Secondly, Trump

0:14:21.040 --> 0:14:23.360
<v Speaker 13>can nominate anybody who wants to the FED, but it's

0:14:23.400 --> 0:14:25.440
<v Speaker 13>the Senate. It's up to the Senate to approve them,

0:14:25.720 --> 0:14:28.320
<v Speaker 13>and the Senate has shown even the Democratic Senate and

0:14:28.360 --> 0:14:31.720
<v Speaker 13>Biden days has shown they're not rubber stamps. As the

0:14:32.040 --> 0:14:35.240
<v Speaker 13>kerfuffle around bloom raskin for the show who ultimately had

0:14:35.240 --> 0:14:35.800
<v Speaker 13>to drop.

0:14:38.200 --> 0:14:41.640
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