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Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane Jai Ley.

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Speaker 1: We bring you insight from the best in economics, finance, investment,

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Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud,

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Speaker 1: Bloomberg dot Com, and of course on the Bloomberg Tiffany Wilding,

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Speaker 1: you have to brief portfolio managers at PIMCOT. There are

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Speaker 1: some shell shocked, others I'm sure are finding this opportunistic.

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Speaker 1: What is your message to fixeding managers at PIMCO this morning? Well, so,

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Speaker 1: I think you kind of have to put the whole

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Speaker 1: you know, coronavirus situation in perspective, um, and that is

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Speaker 1: to be humble about it, because I know, you know, historically,

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Speaker 1: you know, instances like this. Ultimately, you know the you know,

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Speaker 1: the virus subsides at some point, and when that happens,

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Speaker 1: you have economic activity that rebounds rich turns to normal.

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Speaker 1: But there's a lot of uncertainty around the path to

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Speaker 1: get there. Um. The depth of the type of disruption

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Speaker 1: and the how long that disruption lasts is very uncertain UM.

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Speaker 1: And it's certainly possible you know that this could you know,

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Speaker 1: push the US and and other developed market economies into

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Speaker 1: recession before we get the ultimate rebound. Okay, well, PIMCO

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Speaker 1: had a brilliant call on this. I'm not going to

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Speaker 1: give you all the credit that that PIMCO deserves, but

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Speaker 1: you were certainly part of a team that was exceptionally

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Speaker 1: cautious I'm g d p Uh into eighteen months ago

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Speaker 1: and into twelve months ago, You're where you thought you'd be, right, Um, yeah,

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Speaker 1: I mean, so you know, we were. We were more

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Speaker 1: cautious on on the potential impact of you know, the

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Speaker 1: trade war um, and we called it a window of

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Speaker 1: weakness late last year. Um, you know, because we thought

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Speaker 1: that could you know, disrupt manufacturing um in the US.

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Speaker 1: We ultimately got the trade deal, um, which we thought

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Speaker 1: was a little bit better. Uh So, coming into the coronavirus,

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Speaker 1: actually things the initial conditions in the U. S economy

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Speaker 1: were actually you know, looking somewhat better, as were they

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Speaker 1: in the rest of the world. Um. You know, actually

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Speaker 1: global manufacturing growth looked like it was stabilizing and maybe

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Speaker 1: even rebounding, led by China. And now, of course all

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Speaker 1: of that, uh you know comes into question now that

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Speaker 1: we have you know, this coronavirus outbreak. So Tiffany, The

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Speaker 1: FED you know, is trying its best, I guess is

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Speaker 1: a great way to a good way to kind of

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Speaker 1: phrase it. You know, with that intromediing and intermeding rate

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Speaker 1: cut earlier this week, what do you think the FED

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Speaker 1: is going to do going forward? And is there much

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Speaker 1: it can do? Um? Well, you know we so if

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Speaker 1: you look at one way to think about this is

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Speaker 1: just to look at historical precedent and if you look

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Speaker 1: at the emergency rate cuts are intermeding rate cuts that

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Speaker 1: we've seen, um, you know over called you know, since

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Speaker 1: the early nineties, we've had seven instances of them, um,

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Speaker 1: each of them. The meeting directly after that intermeding rate cut,

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Speaker 1: the FED also cut um. You know. So I think

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Speaker 1: by that historical precident, we should absolutely expect a cut

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Speaker 1: at the meeting in March. You know. One thing that

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Speaker 1: I thought was interesting was that the you know, before

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Speaker 1: the blackout period which actually starts tomorrow, we had several

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Speaker 1: speakers overnight. They didn't really push back against the current

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Speaker 1: market pricing, you know, which which is pricing in a

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Speaker 1: probability that they could even cut fifty again, um. And

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Speaker 1: you know, certainly that would be consistent with historical precedent

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Speaker 1: as well. What is the efficacy to our listeners of

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Speaker 1: a hundred basis point rate cut over three cups of

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Speaker 1: pimcoat coffee? What's it mean? Yeah? Well, you know, I

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Speaker 1: think certainly and the Federal Reserve understands this. You know,

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Speaker 1: monetary policy is not going to stop the spread of

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Speaker 1: the virus. It's not going to be particularly effective against

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Speaker 1: supply chain disruptions that we expect. But what monetary policy

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Speaker 1: can do, you know, and and and Powell talked about

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Speaker 1: this is monetary policy can try to create conditions that,

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Speaker 1: instead of exacerbating an economic shock, um, you know, they

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Speaker 1: try to buffer it. So what tends to happen when

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Speaker 1: you have a growth shock is that can lead to

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Speaker 1: market panic, It can lead to tighter financial conditions, bank

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Speaker 1: pull banks pulling back on credit, um, you know, and

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Speaker 1: that ultimately exacerbates exacerbates the economic sharks. So I think

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Speaker 1: the Fed wants to try to set conditions to where

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Speaker 1: they do it doesn't do that, it's going to be

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Speaker 1: we'll get to next week. Keivity Welding, thank you so much.

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Speaker 1: Let's talk about the virus. The number of cases globally

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Speaker 1: nearing a hundred of thousand. More infections have now been

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Speaker 1: reported in the United States, in Germany, and in South Korea. Finally,

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Speaker 1: Clighorn of the Palladium Group, he is the health director

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Speaker 1: that joining us now from Washington to discuss all of this. Finally,

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Speaker 1: let's talk about what we know and what we don't know.

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Speaker 1: What we know is that we don't have enough test kids,

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Speaker 1: and by extension, therefore, we don't know exactly how many

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Speaker 1: people have got the virus, how fast it's spreading, what

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Speaker 1: the delta is. What can you tell us, Well, that's

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Speaker 1: exactly correct, thank you. Um, we don't have enough test

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Speaker 1: gits in the US. We don't seem to be able

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Speaker 1: to operationalize enough test gits to get them to the

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Speaker 1: right people. What do I mean by that, Well, we

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Speaker 1: need to understand how many people are being exposed, how

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Speaker 1: many people have acquired the infection, how many people developed

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Speaker 1: clinical symptoms, and then how many people developed severe disease. Obviously,

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Speaker 1: the last step is how many people die. And in

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Speaker 1: the US, the last estimate I've seen is that we've

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Speaker 1: only done about fifteen hundred tests so far, and there

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Speaker 1: have been quite a lot of missed opportunities. UH. In

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Speaker 1: order to get to a broader implementation of testing so

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Speaker 1: that we have a much better picture of the epidemiology

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Speaker 1: off this virus in the country. Doctor. It's wonderful to

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Speaker 1: have you with us in particularly with your decades out

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Speaker 1: of Johns Hopkins University and your direct work with the

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Speaker 1: government facilities. I'm not going to mince words, doctor, and

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Speaker 1: You've been very delicate out this. There is a party

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Speaker 1: of the ways between the President of the United States

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Speaker 1: and the people like you representing the institutions of science

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Speaker 1: in the government. How do we get this fixed by

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Speaker 1: Monday morning? How do we get the virologists to be

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Speaker 1: front and center and advising the public given the messaging

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Speaker 1: we're seeing from the executive branch. Well, one way is

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Speaker 1: to activate mechanisms that are tried and tested by for example,

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Speaker 1: the Ebola Academic where we have a platform in a country,

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Speaker 1: and the US of course does have such a platform. Uh.

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Speaker 1: It's called the One Health Platform. It's a whole of government,

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Speaker 1: very articulated system from top to bottom, where the government

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Speaker 1: in charge, the executive branch as well as branches of

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Speaker 1: government that have responsibility for health and safety, are coordinated

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Speaker 1: with state governments and local government wants and there is

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Speaker 1: a plan of action that allows people to take actions

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Speaker 1: without doing it on their own. And this is something

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Speaker 1: that we have not seen in the last few days

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Speaker 1: in the US. We definitely need more coordination. As I said, uh,

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Speaker 1: the ability to test people is a critical part of

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Speaker 1: understanding the epidemiology off of virus. I mean this is

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Speaker 1: very important, folks. Just to give you the local field

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Speaker 1: ard our world headquarters. Two of our major prep schools

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Speaker 1: collegiate in the Spend school are actually closed today. Is

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Speaker 1: they clean those buildings and we all have our you know,

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Speaker 1: individual local community stories. Dr I look at the complexities

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Speaker 1: of the test kit. It's c d C and I

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Speaker 1: don't want to get into a discussion of RNA or

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Speaker 1: DNA dynamics, which your expert in. How complex are the

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Speaker 1: test kits? How easy are they to replicate, manufacture in

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Speaker 1: introduce to the public. Well, these tests are are viral

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Speaker 1: nucleic tests. That is, they're actually looking for proteins that

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Speaker 1: are in the virus and using a method called PCR,

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Speaker 1: which is poliminaries chain reaction. So essentially you take some

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Speaker 1: human tissue which comes from your nose, your mouth, your throat,

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Speaker 1: your tra chia and you subjected to this test where

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Speaker 1: you're looking to amplify these bits of viral RNA. So

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Speaker 1: it's an r T PCR tests. Uh. The results should

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Speaker 1: be available in twenty four hours. The problem is we

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Speaker 1: have not licensed or leveraged the private sector enough to

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Speaker 1: get enough test kits out to the American public. And

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Speaker 1: this is in stark contrast to for example, China and

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Speaker 1: South Korea. South Korea has done over a hundred thousand

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Speaker 1: tests to date. Uh, they're using their own homegrown tests.

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Speaker 1: R T PCR is actually not that hard to do.

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Speaker 1: You simply have to have the facilities to get the

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Speaker 1: primers made and to get them out to the people

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Speaker 1: who can run the tests. Now, a new step occurred

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Speaker 1: over the last couple of days where private sector developed

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Speaker 1: tests can in fact be used, and that is going

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Speaker 1: to rapidly increase the number of tests available in the US.

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Speaker 1: Doctor our countries with universal healthcare more capable of dealing

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Speaker 1: with dealing with this far ast than those that don't. Well.

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Speaker 1: I think in terms of planning, we mentioned planning that

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Speaker 1: the idea is to do enough risk assessments so you

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Speaker 1: can plan appropriately and and and then to have a

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Speaker 1: risk communications strategy that avoids fear and confusion, which is

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Speaker 1: what you get when you don't have an articulated plan.

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Speaker 1: And we you know, some of the volatility in the

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Speaker 1: stock market we're seeing represents fear and volatility. And uh so,

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Speaker 1: in order it for um systems health system to respond appropriately,

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Speaker 1: they must have as part of that plan identified the

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Speaker 1: number of rooms, for example, in I c U s

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Speaker 1: that can provide the kind of complex respiratory care for

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Speaker 1: patients who have severe disease and who are at the

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Speaker 1: risk of death. These are primarily older people who have

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Speaker 1: concomitant illness and who developed pneumonia after they become infected. Now,

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Speaker 1: in many countries, even highly developed health systems that are

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Speaker 1: single payer health systems like the UK, if you had

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Speaker 1: a sustained epidemic over time, it would really stress the

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Speaker 1: system so that you would have to bring into play

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Speaker 1: new new respiratory I see us. The problem in the

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Speaker 1: US is we are a system of systems, so as

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Speaker 1: far as I know yet, we do not have a

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Speaker 1: coordinated plan for an expanded epidemic where we would need

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Speaker 1: more respiratory I see us. But this is wonderful because

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Speaker 1: of time. I've only got one more question, and I'm

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Speaker 1: gonna be very delicate here. I'm at home with my daughter, afterthought,

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Speaker 1: and we're washing our hands with soap and water, singing

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Speaker 1: happy birthday. I mean, that's what has come down to

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Speaker 1: this weekend. Let me go to the most jinguistic racist

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Speaker 1: idea right now floating around to get our viewers worldwide

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Speaker 1: through the weekend. The number one thing collapsing in America

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Speaker 1: are Chinese restaurants. Would you order Chinese take out this weekend?

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Speaker 1: Would you go into a Chinese restaurant? I mean, if

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Speaker 1: that's the height of the paranoia we're facing right now,

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Speaker 1: I want to hear from you, as a Johns Hopkins expert.

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Speaker 1: Can I take Chinese takeout this weekend? Yes? You should one,

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Speaker 1: because you're helping the economy too. Because the very notion

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Speaker 1: of just having Chinese food and increasing your risk for

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Speaker 1: coronavirus is to me borders on racist. So I think, yes,

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Speaker 1: you should have Chinese food. I hope it's good Chinese

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Speaker 1: food that you're going to have. Uh, and lather up

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Speaker 1: because twenty seconds with soap and water, the secret is

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Speaker 1: in the lather So if you don't up, Yeah, it's

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Speaker 1: those bubbles that break down micro organisms. That's great. That's

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Speaker 1: good to know it will be your guy and I

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Speaker 1: have to write so dcor, this has been extremely valuable.

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Speaker 1: We look forward to speaking to you again. Drygaring with

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Speaker 1: Palladium Group is their health director. Hugely informative place decide

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Speaker 1: that why aren't get on the bond market now? Jeff Rosenberg,

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Speaker 1: City of PM on black Rock Systematic Fixed Income Team, Jeff,

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Speaker 1: fantastic to have you with us. Your first take place. Well,

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Speaker 1: I think you said it. It's you know, the most

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Speaker 1: um you know, irrelevant payroll report we've had in a

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Speaker 1: long time. I'd love to talk about the payroll report

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Speaker 1: because it's some good news and as you said, it

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Speaker 1: doesn't really matter. It's backward looking. It does remind us

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Speaker 1: of how strong the economy was going into this coronavirus.

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Speaker 1: But this this information is dated. That's why it's not

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Speaker 1: market moving. I guess what you can say is at

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Speaker 1: least it's not bad news. If it was bad news

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Speaker 1: into the coronavirus fears, who knows how the panic might

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Speaker 1: have accelerated. But this is a reminder of the strength

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Speaker 1: of the economy going into the shock. What we had

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Speaker 1: last week was the monetary policy response. I mean, obviously

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Speaker 1: we had it this week, but last week's declines in

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Speaker 1: the equity markets prompted this week's monetary policy response. This

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Speaker 1: week's equity market response, next week's story is the fiscal

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Speaker 1: policy response, and that's what we're gonna be talking about.

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Speaker 1: I think we're gonna move to that conversation because there's

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Speaker 1: a very limited amount of what monetary policy can do,

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Speaker 1: and it's gonna be much greater about the focus on

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Speaker 1: fiscal policy. If we get a strong, coherent, robust response,

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Speaker 1: I think that could be very beneficial. But to the

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Speaker 1: earlier question, we don't know what the demand side shock

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Speaker 1: is to the supply from this supply side shock, but

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Speaker 1: you need a fiscal policy response to to address that.

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Speaker 1: Monetary policy is limited. Jeff, to your point about momentum,

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Speaker 1: and this is something that Jim was talking about too,

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Speaker 1: that the momentum was there in the U. S economy

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Speaker 1: before this shock. Why does that matter? What does that

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Speaker 1: tell you in terms of the shape of the recovery

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Speaker 1: and the scope of the recovery. Well, it tells you

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Speaker 1: that you you have the ability to limit the damage

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Speaker 1: to the economy because you're dealing with a shock from

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Speaker 1: a position of strength as opposed to dealing with a

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Speaker 1: shock from a position of weakness and a position of

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Speaker 1: vulnerability from a fundamental economic perspective. Now, I think what's

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Speaker 1: going on in terms of the financial markets is that

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Speaker 1: you had a shock from a fundamental economic perspective to

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Speaker 1: a financial market that was very vulnerable. You had complacency,

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Speaker 1: you had valuations at very high levels, you had very

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Speaker 1: little cushion, So a lot of the drop is coming

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Speaker 1: from very high levels. If we think about it from

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Speaker 1: the fixed income perspective, a lot of the widening and

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Speaker 1: credit spread is coming from very tight levels. You're getting

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Speaker 1: big moves and spreads, but the levels that you're at

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Speaker 1: are hardly anything near recessionary type levels. They're getting you

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Speaker 1: back into kind of fair value, mid mid expansion kind

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Speaker 1: of level. So there was a bit of over uh.

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Speaker 1: If you look at the delta, the change looks very aggressive,

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Speaker 1: but it's coming from a very tight level. So financial

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Speaker 1: markets were a bit more vulnerable, the economy was much

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Speaker 1: more resilient. You can make the argument that stocks are

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Speaker 1: not pricing in a recession pe multiple still very high. Bonds, however,

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Speaker 1: are do you think that bonds are overdone, that they're

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Speaker 1: over bought at this level. No, I I think you

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Speaker 1: gotta be careful about, you know, bonds pricing in a

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Speaker 1: recession versus bonds pricing in a pre emptive policy reaction. Uh,

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Speaker 1: and in some sense forcing that preemptive policy reaction. That's

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Speaker 1: the kind of strange world that we're in, is that

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Speaker 1: is that financial conditions matter so much to the FED

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Speaker 1: that the bond market reaction is in anticipation ation of

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Speaker 1: the FED reacting to financial market conditions, and so the

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Speaker 1: bond market is kind of previewing where the Fed is

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Speaker 1: going to go. We saw that this week with fifty

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Speaker 1: basis points. You're seeing it again with another fifty basis

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Speaker 1: points anticipated. So you know, does that predict recession? Not sure?

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Speaker 1: Does it predict policy response absolutely? And then the question

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Speaker 1: is is the combined policy response again monetary and fiscal,

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Speaker 1: enough to forestall the recession. Jeffrey Rosenberg with us, of course,

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Speaker 1: with his wonderful strategy work at Black Rocket. Of course,

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Speaker 1: the mathematics of Carnegie Mellen as well. Jeff I want

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Speaker 1: to go Matthew right now. I've got a fancy log

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Speaker 1: chart of two year yield. The abruptness, the first derivative

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Speaker 1: moves a second derivative acceleration that we're seeing has been extraordinary.

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Speaker 1: The Greek letter for this is gamma. Should our listeners

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Speaker 1: care about gamma? Does does the abruptness of all these

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Speaker 1: moves really matter forward? Well, you know, there's a lot

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Speaker 1: of technical aspects to financial markets that encourage this rate

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Speaker 1: of change and acceleration. At a conversation, another terminology for

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Speaker 1: gammas convexity. You have a lot of convexity in the market.

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Speaker 1: I mean, this is a remarkable world where you know,

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Speaker 1: the the financial people want to talk about uh, the virus,

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Speaker 1: but the but but but you can have the doctors

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Speaker 1: wanting to talk about refinancing their mortgages. And so when

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Speaker 1: you're refinancing your mortgage, what you're getting is a lot

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Speaker 1: of that gamma in the market. It's a huge marketplace,

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Speaker 1: it has a lot of dynamics, and it's one of

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Speaker 1: the factors behind the accelerated move. Certainly, there's a fundamental factor,

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Speaker 1: which is the expectation for policy change, but it gets

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Speaker 1: exacerbated by these technical factors of a demand for duration.

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Speaker 1: When the rest of us are going to look at

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Speaker 1: this as an opportunity to refinance our mortgages, when we

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Speaker 1: do that, the demand for replacing that interest rate risk

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Speaker 1: drives these rates even or so there's a lot of

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Speaker 1: that going on in the bond market. That's just quickly

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Speaker 1: from me. My final question, just picking up on the

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Speaker 1: pace of this move two mondays ago, the higher session

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Speaker 1: for the two year yield on the thirty year yield

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Speaker 1: is south of that right now in the two years

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Speaker 1: now only forty six basis points. When things move this quick,

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Speaker 1: and I want you to take me inside the tentacles

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Speaker 1: in the market. When things move this quick, the things bright. Well,

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Speaker 1: that's the question of financial vulnerabilities, right and and you

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Speaker 1: know in the in the rate market, part of that

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Speaker 1: rate hedging, that's a very liquid market. It's a very

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Speaker 1: liquid market. It's a functional market, and it's not breaking,

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Speaker 1: but it's it's bending. And when I say bending, it's

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Speaker 1: accelerating the moves in terms of the breakage of the market.

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Speaker 1: Where you have greater vulnerabilities is really in different parts

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Speaker 1: of the fixed income market where you see liquidity and

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Speaker 1: cash flows and difficulties of refinancing. That's a bit what

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Speaker 1: the preempt of monetary policy is partly to address. Let's

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Speaker 1: make sure there's ample amounts of look quidity. There's no

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Speaker 1: technical defaults because someone can't get access to liquidity. And

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Speaker 1: you certainly see that in a global perspective when you

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Speaker 1: look at, say, for example, the Chinese response and the

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Speaker 1: fiscal monetary policy response to ensure that small medium enterprises

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Speaker 1: are getting access to rolling over as they're having a

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Speaker 1: short term cash flow issue. So those policy interventions can

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Speaker 1: help in those circumstances prevent markets from breaking and exacerbating

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Speaker 1: losses where they otherwise wouldn't need to occur. Mr Rosenberg

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Speaker 1: with us. He is a senior portfolio manager of black

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Speaker 1: Rock and their systemic fixed income team. Jeff, I want

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Speaker 1: you to go short term systemic right now. I call

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Speaker 1: it the trust market, folks. This is well inside the

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Speaker 1: two years space. It is a trust of overnight money.

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Speaker 1: It is a trust of three day money, it is

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Speaker 1: a trust of ninety day money. How's the trust market doing,

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Speaker 1: Jeff Rosenberg? Um, I'm not sure. I'm totally fall allowing

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Speaker 1: uh that. But if you're talking about short term confidence,

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Speaker 1: short term confidence is evidenced by the short term paper

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Speaker 1: market into the weekend. Yeah. I mean, look, the short

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Speaker 1: term markets are are fine. There's a there's a demand

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Speaker 1: for cash, there's a there's a flight to quality, there's

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Speaker 1: a flight out of risk. That's what the markets are saying.

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Speaker 1: That's uh, a normal expected reaction to a lot of

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Speaker 1: panic and a lot of uncertainty and a lot of

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Speaker 1: risk that people have had in their in their equity portfolios.

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Speaker 1: And we looked at equity allocations over the last five

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Speaker 1: years from you know, some of the data sources that

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Speaker 1: provide you kind of aggregate holdings. Everybody's equity allocations have

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Speaker 1: drifted higher, uh, not a huge amount, but they've been

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Speaker 1: willing to drift higher because it's been a great fundamental

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Speaker 1: market and you have this outside shock that no one predicted,

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Speaker 1: and you came into it. As I was saying in

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Speaker 1: the earlier section, you know, the economy came into it resilient,

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Speaker 1: but financial markets came into it vulnerable. And so what

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Speaker 1: you're having here is a forced rebalancing. And then as

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Speaker 1: part of that forced rebalancing, the beneficiaries are our cash

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Speaker 1: and safe haven assets and bonds. As we're as we're

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Speaker 1: clearly seeing and and you're also seeing that now in

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Speaker 1: terms of the relative underperformance of higher risk segments of

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Speaker 1: the equity markets. With the exception of some weird days

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Speaker 1: last week, you're seeing that again today. Reads, utilities, interest rates,

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Speaker 1: bond proxies doing better. That's all, you know, normal behavior,

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Speaker 1: but it is reflective of this de risking portfolio. And

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Speaker 1: it goes, Lisa, right to where your wheelhouse. As we

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Speaker 1: do this, folks of the futures back over to negative

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Speaker 1: ninety four. Lisa, that's right to the spread study you've

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Speaker 1: been looking at all week. I'm just wondering, from your perspective,

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Speaker 1: do you think that the corollary for this is two

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Speaker 1: thousand seven No, no, and and and really, guys, let's

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Speaker 1: not do this. Let's not panic people. Uh, In in

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Speaker 1: that way that what happened in two thousand seven eight

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Speaker 1: was very unique. And why you saw that happen in

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Speaker 1: commercial paper markets and in the credit markets was because

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Speaker 1: the center of the crisis was in the financial system. Right,

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Speaker 1: let's calm people down a little bit rather than rilling

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Speaker 1: them up. This financial system is much more resilient to

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Speaker 1: an external shock of coronavirus than to an external shock

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Speaker 1: of subprime mortgages, which was an external It was central,

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Speaker 1: and it broke the financial system. And that's why you

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Speaker 1: saw the commercial paper markets blow up and create more

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Speaker 1: panic and more uncertainty. Those markets are resilient, they're operating

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Speaker 1: as they should, They're reflective of flight to quality. But

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Speaker 1: the issues and the concerns are not there. The issues

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Speaker 1: and the concerns are with the uncertainty over what a

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Speaker 1: virus does to economic activity. We're all feeling it in

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Speaker 1: terms of we're getting emails from our schools. Are they

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Speaker 1: shutting down our companies where we're working. That's where the

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Speaker 1: panic is. Let's not panic people in other areas where

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Speaker 1: there is into panic. Those markets are working well. There's

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Speaker 1: more resilience. We will get through this once the uncertainty

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Speaker 1: of how bad the impact of the economy is, and

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Speaker 1: as I said earlier, we're gonna need a little bit

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Speaker 1: of help from our policymakers, and we're going to get

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Speaker 1: it in terms of a fiscal policy response that will

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Speaker 1: be robust and will help to offset the demand side shock.

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Speaker 1: And we'll wake up and we'll see what the payroll

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Speaker 1: report is reminding us of, which is, Hey, we came

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Speaker 1: into this with a pretty resilient account and resilience will

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Speaker 1: be our source of strength when this uncertainty pass. Half

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Speaker 1: a million jobs in ninety days is and excuse me,

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Speaker 1: in sixty days is a big number. Jeffrey Rosenberger, Black Rock,

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Speaker 1: thank you so much for the White House is here

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Speaker 1: on the Charlton fold in place to say we joined

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Speaker 1: on Blindberg Television and on Blindberg Radio by Larry Cardlo,

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Speaker 1: National Economic Council Director Larry and I must be exhausted,

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Speaker 1: give me a twot so far this morning, so let's

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Speaker 1: get straight into it. The good news is the labor

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Speaker 1: market going into this growth scale looks pretty decent. Yes, right,

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Speaker 1: by the way, I feel great, and thanks for having

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Speaker 1: me back on the show, Jonathan, labor market looks excellent,

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Speaker 1: very strong, and incidentally, most sectors in the economy look strong.

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Speaker 1: We're through the first two months of the of the

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Speaker 1: first quarter, right, so we got January and February, and

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Speaker 1: some of the China influence is already affecting us. But

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Speaker 1: the numbers are probably better named by thought. Um you

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Speaker 1: maybe two and a half to three in the first quarter.

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Speaker 1: I know as a realist um economic growth is likely

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Speaker 1: to slow in the second quarter and maybe the third.

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Speaker 1: I don't want to get too far ahead of it

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Speaker 1: because some of these UH virus numbers in China coming

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Speaker 1: way down outside China not so much. But I'm just

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Speaker 1: saying the U. S economy is very strong. Two hundred

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Speaker 1: seventy three thousand jobs and as you know, Jonathan, with revisions,

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Speaker 1: three hundred and fifty thousand jobs, that's a blowout. And

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Speaker 1: wage rates still rising, and you know, the blue collar

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Speaker 1: boom we've talked about still there. From these data, middle income,

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Speaker 1: lower wage people are out performing their managers. Unemployment rate

428
00:25:16,320 --> 00:25:20,160
Speaker 1: three point five across the board, every single demographic group,

429
00:25:20,520 --> 00:25:25,480
Speaker 1: So that's awfully good. Housing is improving, building is improving

430
00:25:25,520 --> 00:25:28,000
Speaker 1: yet a lot of construction jobs in this report, and

431
00:25:28,040 --> 00:25:32,679
Speaker 1: a pickup and manufacturing. So yes, the economic base is strong.

432
00:25:33,040 --> 00:25:36,359
Speaker 1: The fundamentals of the economy is strong. We are going

433
00:25:36,400 --> 00:25:40,399
Speaker 1: to see some issues coming up from the coronavirus. I

434
00:25:40,440 --> 00:25:43,040
Speaker 1: get that, but I think for the United States this

435
00:25:43,080 --> 00:25:46,200
Speaker 1: is gonna be temporary problems, Larry, not a time to panic,

436
00:25:46,240 --> 00:25:47,919
Speaker 1: but as time to be prepared, and I hope it's

437
00:25:47,920 --> 00:25:50,000
Speaker 1: temporary as well. We've seen the right cuts from the

438
00:25:50,000 --> 00:25:53,200
Speaker 1: federal Reserve, an emergency fifty basis point cut. What's the

439
00:25:53,240 --> 00:25:58,000
Speaker 1: administration working on to complement that, you know, any of

440
00:25:58,040 --> 00:26:03,720
Speaker 1: our fiscal policies, uh, sect term munition, and I'm talking

441
00:26:03,720 --> 00:26:08,679
Speaker 1: about it. Treasury and NBC and other groups are helping us.

442
00:26:09,480 --> 00:26:14,520
Speaker 1: We're in the camp, Jonathan, that wants timely and targeted

443
00:26:14,800 --> 00:26:19,959
Speaker 1: micro measures, not large sweeping you know, hundreds and hundreds

444
00:26:20,000 --> 00:26:23,679
Speaker 1: of billions of dollars UH, that don't affect incentives and

445
00:26:23,720 --> 00:26:26,480
Speaker 1: don't affect growth in any permanent way. You know, we're

446
00:26:26,520 --> 00:26:31,000
Speaker 1: worried about people who may have problems with jobs in

447
00:26:31,040 --> 00:26:34,399
Speaker 1: wages because they have to stay home. We're worried about

448
00:26:34,600 --> 00:26:38,760
Speaker 1: small businesses, for example, that might need some help to

449
00:26:38,920 --> 00:26:41,840
Speaker 1: get through this if it turns out. We're worried about

450
00:26:41,880 --> 00:26:45,960
Speaker 1: certain sectors of the economy. Airlines coming to mind, but

451
00:26:46,320 --> 00:26:48,159
Speaker 1: I don't want to get too deep on that that

452
00:26:48,320 --> 00:26:51,679
Speaker 1: might need some help. We're looking for targeted measures that

453
00:26:51,760 --> 00:26:55,200
Speaker 1: will do the most good in a short period of time,

454
00:26:56,080 --> 00:27:01,000
Speaker 1: not large macro kinds of solutions which don't help economic

455
00:27:01,040 --> 00:27:03,800
Speaker 1: incentives and have no permanent impact on growth. We want

456
00:27:03,840 --> 00:27:06,480
Speaker 1: to just get through this and help folks as much

457
00:27:06,520 --> 00:27:09,040
Speaker 1: as we can in a targeted way. Alowry, that's music

458
00:27:09,080 --> 00:27:10,600
Speaker 1: to my ears, because we've got a bit of a

459
00:27:10,600 --> 00:27:13,840
Speaker 1: problem here. This can be temporary, it's a one off shock.

460
00:27:13,920 --> 00:27:16,639
Speaker 1: It will fade. But what will determine how temporary this

461
00:27:16,760 --> 00:27:18,600
Speaker 1: is the kind of tools we have ready to deploy

462
00:27:18,880 --> 00:27:21,440
Speaker 1: to how pessimese to have some people who are struggling

463
00:27:21,440 --> 00:27:22,760
Speaker 1: if they've got to stay at home. So walk me

464
00:27:22,760 --> 00:27:25,359
Speaker 1: through the policies, the actual policies. You're having the discussion.

465
00:27:25,640 --> 00:27:29,520
Speaker 1: When do we start to get some results, Um, stay tuned,

466
00:27:29,600 --> 00:27:31,879
Speaker 1: stay with us. We may have more to say about

467
00:27:31,920 --> 00:27:36,719
Speaker 1: this next week. You know, I think we need to

468
00:27:36,760 --> 00:27:41,400
Speaker 1: do this, Jonathan, when the actual facts come in. Now

469
00:27:41,440 --> 00:27:46,800
Speaker 1: we're getting reports from industries. We had the airline people

470
00:27:46,800 --> 00:27:50,520
Speaker 1: in the White House earlier this week. President Trumps talking

471
00:27:50,800 --> 00:27:55,199
Speaker 1: a lot of major UH sectors across the economy. We

472
00:27:55,320 --> 00:27:58,240
Speaker 1: just want to keep gathering as many facts and information

473
00:27:58,280 --> 00:28:01,480
Speaker 1: as we can before we come up with the specific

474
00:28:01,720 --> 00:28:04,520
Speaker 1: But we are looking at this and as I say,

475
00:28:04,760 --> 00:28:09,120
Speaker 1: temporary and targeted to get through this, which will be

476
00:28:09,880 --> 00:28:13,640
Speaker 1: God willing a temporary virus a problem. You know, that's

477
00:28:13,680 --> 00:28:18,000
Speaker 1: our approach. We're not looking for big picture, gigantic packages

478
00:28:18,880 --> 00:28:21,639
Speaker 1: that will not help growth. We've learned in the past

479
00:28:21,760 --> 00:28:24,640
Speaker 1: and will be Um, you know, huge budget busters and Larry,

480
00:28:24,720 --> 00:28:27,000
Speaker 1: something you've said concerns me though that we're gonna wait.

481
00:28:27,080 --> 00:28:28,960
Speaker 1: We're gonna wait to see what the data says. And

482
00:28:29,000 --> 00:28:31,840
Speaker 1: what I've seen so far is not just the administration,

483
00:28:31,880 --> 00:28:35,040
Speaker 1: but signs coming from policymakers elsewhere that they're just being

484
00:28:35,040 --> 00:28:37,480
Speaker 1: held hostage by say what happens in the next move

485
00:28:37,560 --> 00:28:40,360
Speaker 1: in financial markets, and they haven't got the tools ready

486
00:28:40,360 --> 00:28:42,600
Speaker 1: to deploy when they need to. This should be the

487
00:28:42,600 --> 00:28:45,080
Speaker 1: planning stage. We should be ready to go if we

488
00:28:45,200 --> 00:28:48,240
Speaker 1: seriously got no policies ready to deploy if things get

489
00:28:48,240 --> 00:28:52,520
Speaker 1: worse next week, the week after uh MA sure answers. Yes,

490
00:28:52,600 --> 00:28:56,080
Speaker 1: we can move very rapidly, and we're doing a lot

491
00:28:56,160 --> 00:28:59,560
Speaker 1: of homework right now on all these points, Jonathan. I

492
00:28:59,600 --> 00:29:02,720
Speaker 1: don't want to put them out publicly because I understand,

493
00:29:02,720 --> 00:29:05,000
Speaker 1: but it's still my confidence because we have a moment

494
00:29:05,000 --> 00:29:07,640
Speaker 1: now where there's a real lack of confidence, Larry, and

495
00:29:07,680 --> 00:29:09,320
Speaker 1: you know me, I don't like to lay it on thick.

496
00:29:09,360 --> 00:29:12,080
Speaker 1: This isn't about making people fearful of things. I just

497
00:29:12,080 --> 00:29:15,720
Speaker 1: think there's a lack of confidence in global officials. Not

498
00:29:15,760 --> 00:29:17,240
Speaker 1: on the medical side, and that's not for you and

499
00:29:17,240 --> 00:29:19,920
Speaker 1: I to discuss today, but on the economic side. Talk

500
00:29:19,960 --> 00:29:22,080
Speaker 1: to me about the policies have we've got payroll tax

501
00:29:22,120 --> 00:29:23,880
Speaker 1: cuts ready to go. Do we have a targeted lending

502
00:29:23,880 --> 00:29:25,800
Speaker 1: program to west some he is ready to go? Do

503
00:29:25,840 --> 00:29:28,960
Speaker 1: we have a tax forgiveness season ready to deploy if

504
00:29:28,960 --> 00:29:33,400
Speaker 1: we need to. We have made decisions on some of that. Again,

505
00:29:33,640 --> 00:29:37,000
Speaker 1: peril tax cuts, we can debate the pros and cons.

506
00:29:37,400 --> 00:29:40,080
Speaker 1: I lean against them. We've tried them in the past.

507
00:29:40,440 --> 00:29:43,520
Speaker 1: Temporary tax that costs a lot of money, you know,

508
00:29:43,600 --> 00:29:47,320
Speaker 1: six fifty billion dollars. They don't last. There's no incentive

509
00:29:47,360 --> 00:29:52,160
Speaker 1: effect because they're temporary. Again, Johnathan, I think the basic

510
00:29:52,240 --> 00:29:57,560
Speaker 1: view here amongst my colleagues is temporary and targeted. So

511
00:29:57,680 --> 00:30:03,360
Speaker 1: if cash injections are needed to help folks who are

512
00:30:03,480 --> 00:30:06,320
Speaker 1: at home because of the virus one way or another

513
00:30:06,720 --> 00:30:09,440
Speaker 1: and lose a paycheck or two, we want to help them.

514
00:30:09,480 --> 00:30:14,880
Speaker 1: If small businesses are in our condition in certain parts

515
00:30:14,880 --> 00:30:18,040
Speaker 1: of the country, we can inject some cash. That could

516
00:30:18,080 --> 00:30:21,320
Speaker 1: be true in farming, that could be true in manufacturing,

517
00:30:21,680 --> 00:30:24,960
Speaker 1: that can be true in transportation and a lot of

518
00:30:24,960 --> 00:30:28,000
Speaker 1: other places. So to pull that trigger will not take

519
00:30:28,080 --> 00:30:31,640
Speaker 1: much time at all, and probably we'd like to do

520
00:30:31,720 --> 00:30:34,640
Speaker 1: it internally. You know, if we can buy executive order.

521
00:30:34,680 --> 00:30:37,280
Speaker 1: We just got the eight billion dollar package from Congress.

522
00:30:37,320 --> 00:30:40,400
Speaker 1: That's good helping us on the on the medical side

523
00:30:40,400 --> 00:30:43,480
Speaker 1: of this very important. Thank them, Thank them for it.

524
00:30:44,200 --> 00:30:45,880
Speaker 1: We may need to come back. If we need to

525
00:30:45,920 --> 00:30:48,680
Speaker 1: go back to Congress, we will. We won't hesitate, but

526
00:30:48,760 --> 00:30:51,719
Speaker 1: we we are in the playing stage. And by the way, uh,

527
00:30:51,960 --> 00:30:55,600
Speaker 1: you know, Secretary Manuition reminds me the G seven just

528
00:30:55,680 --> 00:30:59,160
Speaker 1: had a very important conference call and all these big

529
00:30:59,200 --> 00:31:03,720
Speaker 1: countries are making their own plans as things develop in

530
00:31:03,840 --> 00:31:07,400
Speaker 1: those countries. So I don't want to be premature, but yes,

531
00:31:07,480 --> 00:31:09,440
Speaker 1: this can all be done in a very timely way.

532
00:31:09,680 --> 00:31:13,120
Speaker 1: We just need, you know, information gathering is very important, Jonathan,

533
00:31:13,120 --> 00:31:15,640
Speaker 1: and I will say this to you with respect to

534
00:31:15,720 --> 00:31:20,320
Speaker 1: the job's report today, which was a blowout number. I mean,

535
00:31:20,320 --> 00:31:23,040
Speaker 1: employment is blown out under President Trump, way beyond what

536
00:31:23,080 --> 00:31:28,920
Speaker 1: anybody thought possible. But that good income numbers, good consumers spending,

537
00:31:28,960 --> 00:31:32,640
Speaker 1: good housing numbers. Let's not assume the worst. You've got

538
00:31:32,640 --> 00:31:36,200
Speaker 1: a menu of options here, alright. Some options are negative,

539
00:31:36,280 --> 00:31:40,000
Speaker 1: some options are either less negative or rather positive, and

540
00:31:40,080 --> 00:31:42,600
Speaker 1: I want to, you know, wait and see how that

541
00:31:42,640 --> 00:31:45,120
Speaker 1: plays out. The same is true with the actual medical

542
00:31:45,160 --> 00:31:48,360
Speaker 1: reports on the contagion of the virus. But let's just

543
00:31:48,400 --> 00:31:51,840
Speaker 1: wait and see. Let's not extrapolatest case. And I don't

544
00:31:51,840 --> 00:31:53,080
Speaker 1: want to teach you how to be a policy make

545
00:31:53,120 --> 00:31:54,520
Speaker 1: you a far more experience than me. But you know

546
00:31:54,560 --> 00:31:55,840
Speaker 1: what this is about. You hope for the best, you

547
00:31:55,880 --> 00:31:57,880
Speaker 1: prepare for the worst. You've told me to ready some

548
00:31:57,880 --> 00:32:01,240
Speaker 1: move quickly. Let's talk about threshold. I've got a bond market,

549
00:32:01,240 --> 00:32:03,400
Speaker 1: we deal to all time loaves. I've got crewed down

550
00:32:03,440 --> 00:32:06,600
Speaker 1: seven on my screen right now, my Bloomberg terminals lighting up.

551
00:32:06,840 --> 00:32:10,280
Speaker 1: It's lighting up. It's the threshold is what will determine

552
00:32:10,320 --> 00:32:12,120
Speaker 1: you to move and deploy those tools that you say

553
00:32:12,120 --> 00:32:14,480
Speaker 1: are ready to go in a timey fashion. Does the

554
00:32:14,520 --> 00:32:20,640
Speaker 1: market dictate that? Does the data dictate that? What dictates that? Well, look,

555
00:32:20,720 --> 00:32:24,760
Speaker 1: both will dictate that, but we we can't. We Look,

556
00:32:24,800 --> 00:32:30,040
Speaker 1: you've got myself, Terry manution, others President Trump for that matter.

557
00:32:30,760 --> 00:32:33,120
Speaker 1: We all have a lot of market experience. We all

558
00:32:33,160 --> 00:32:36,240
Speaker 1: have a lot of private sector business experience. So yes,

559
00:32:36,280 --> 00:32:39,720
Speaker 1: of course we watch financial markets. On the other hand,

560
00:32:40,080 --> 00:32:42,400
Speaker 1: you have to watch the actual data on the ground,

561
00:32:43,280 --> 00:32:48,880
Speaker 1: economic data, the health data, the virus related data. So

562
00:32:48,960 --> 00:32:51,360
Speaker 1: that's we have to do that. We can't just make

563
00:32:51,360 --> 00:32:54,440
Speaker 1: a move because the bond does thus, you know, in

564
00:32:54,560 --> 00:32:57,719
Speaker 1: two hours on on Thursday or Friday, we can't do that.

565
00:32:57,840 --> 00:33:00,479
Speaker 1: We're watching it. We're trying to We're trying to do

566
00:33:00,520 --> 00:33:05,280
Speaker 1: our homework and watch everything. I just want to say though, Jonathan, again,

567
00:33:05,720 --> 00:33:08,200
Speaker 1: I'm not the medical expert. I am part of the

568
00:33:08,240 --> 00:33:11,760
Speaker 1: task force. I'm in constant touch on a daily basis

569
00:33:12,040 --> 00:33:15,840
Speaker 1: with our really experienced uh C d C people and

570
00:33:15,920 --> 00:33:18,560
Speaker 1: others who have done such a fabulous job. I mean,

571
00:33:18,600 --> 00:33:20,280
Speaker 1: I gotta give him a lot of credit. They're all

572
00:33:20,280 --> 00:33:25,120
Speaker 1: over it. Um. Most Americans are not at risk. That

573
00:33:25,280 --> 00:33:29,920
Speaker 1: is their view. Most Americans are not at risk. The

574
00:33:30,000 --> 00:33:33,880
Speaker 1: biggest risk cohort is, in fact the seniors, the elderly folks,

575
00:33:33,960 --> 00:33:37,280
Speaker 1: and they need to be extra cautious. The younger you are,

576
00:33:37,760 --> 00:33:43,200
Speaker 1: the less risk you're facing. And most Americans over recover

577
00:33:43,440 --> 00:33:46,680
Speaker 1: rather easily should they get the virus. I want to

578
00:33:46,720 --> 00:33:50,120
Speaker 1: put that out because my point is if you're healthy,

579
00:33:50,160 --> 00:33:54,320
Speaker 1: if you're healthy, and you exercise common sense about washing

580
00:33:54,360 --> 00:33:57,240
Speaker 1: your hands and clean excess for sneezing and coughing and

581
00:33:57,320 --> 00:34:01,360
Speaker 1: things of that nature, and you avoid the obvious places

582
00:34:01,360 --> 00:34:04,719
Speaker 1: where there are travel advisors. But most Americans are healthy

583
00:34:04,760 --> 00:34:07,480
Speaker 1: and should go about their business. That's what I'm saying.

584
00:34:08,160 --> 00:34:10,279
Speaker 1: The data is suggested. I respect to you a lot,

585
00:34:10,320 --> 00:34:12,080
Speaker 1: and you know that, but neither of us a medical

586
00:34:12,120 --> 00:34:14,200
Speaker 1: professionals and have a duty a care to my audience

587
00:34:14,440 --> 00:34:16,560
Speaker 1: that neither of the medical professionals, and I want to

588
00:34:16,560 --> 00:34:19,200
Speaker 1: focus on the economic data, not the data is from

589
00:34:19,200 --> 00:34:22,480
Speaker 1: the virus. On the economic data. It's clear already the

590
00:34:22,560 --> 00:34:25,479
Speaker 1: delivery times in the p M eyes are stretching, gout,

591
00:34:25,600 --> 00:34:28,480
Speaker 1: they're getting longer. We've got a supply chain issue. An

592
00:34:28,480 --> 00:34:30,920
Speaker 1: easy way of addressing the supply chain issue would be

593
00:34:30,960 --> 00:34:33,000
Speaker 1: to drop some of the tariffs. Why are we not

594
00:34:33,040 --> 00:34:35,759
Speaker 1: talking about that? You said it's about the data. There's

595
00:34:35,760 --> 00:34:40,920
Speaker 1: an easy policy response, there's no follow through. Why not, um,

596
00:34:41,160 --> 00:34:48,520
Speaker 1: just quickly, the supply chain data shows some slowdown and deliveries. Yes,

597
00:34:48,920 --> 00:34:51,880
Speaker 1: not huge, imine airge Jathan, not yet, not huge. It

598
00:34:51,960 --> 00:34:55,319
Speaker 1: may be out there, but so far really quite manageable.

599
00:34:55,800 --> 00:35:00,000
Speaker 1: UM with respected terror policy, I've not heard the President

600
00:35:00,000 --> 00:35:03,479
Speaker 1: and mentioned that it's done seen beyond the table right now.

601
00:35:04,080 --> 00:35:07,719
Speaker 1: We would undoubtedly like to focus much more our our

602
00:35:07,760 --> 00:35:12,720
Speaker 1: domestic issues, whether they're economic issues or their health related issues.

603
00:35:13,120 --> 00:35:15,880
Speaker 1: So the tariff question is not being addressed at the

604
00:35:16,000 --> 00:35:19,319
Speaker 1: present time. But Larry, final question, can you see why

605
00:35:19,360 --> 00:35:22,200
Speaker 1: this is a problem for global markets right now that

606
00:35:22,280 --> 00:35:25,440
Speaker 1: the president is signing a bill and the only policy

607
00:35:25,440 --> 00:35:28,400
Speaker 1: initiative is talking about is coming rates again again in

608
00:35:28,440 --> 00:35:31,000
Speaker 1: the fete to stimulate and you and I and I

609
00:35:31,080 --> 00:35:34,080
Speaker 1: know you know this. There's a policy ready to go

610
00:35:34,719 --> 00:35:37,080
Speaker 1: to offset a lot of fear out there at the moment,

611
00:35:37,400 --> 00:35:40,360
Speaker 1: whether it's justified or not, and there is a reluctance

612
00:35:40,400 --> 00:35:45,440
Speaker 1: to deploy it. And I just don't understand why. Well, Jonathan,

613
00:35:47,040 --> 00:35:50,719
Speaker 1: we have to be thoughtful and careful and analytic. We

614
00:35:50,840 --> 00:35:54,200
Speaker 1: want to do We don't want to willy nilly throw

615
00:35:54,960 --> 00:35:59,240
Speaker 1: three hundred four hundred billion dollars with a thousand dollars

616
00:35:59,280 --> 00:36:04,239
Speaker 1: check to every mark that kind of stuff about, and

617
00:36:04,280 --> 00:36:07,279
Speaker 1: it doesn't work in the past. Moving tarists, I'm not

618
00:36:07,320 --> 00:36:11,600
Speaker 1: talking about helicopter drops, you know, regarding the s s A.

619
00:36:11,760 --> 00:36:16,319
Speaker 1: Removing tariffs. Uh. Not everyone agrees with your analysis. Uh,

620
00:36:16,440 --> 00:36:20,520
Speaker 1: it's something that thus far as not surfacing. Yet. We

621
00:36:20,920 --> 00:36:23,600
Speaker 1: like our China policy and we like the fact that

622
00:36:23,680 --> 00:36:26,760
Speaker 1: China has cut its own tariffs. And by the way,

623
00:36:26,880 --> 00:36:32,760
Speaker 1: when this virus period ends, as it will, You're gonna

624
00:36:32,760 --> 00:36:36,319
Speaker 1: see a major export boom from the United States to

625
00:36:36,440 --> 00:36:39,080
Speaker 1: China that is going to grow the economy by at

626
00:36:39,120 --> 00:36:41,920
Speaker 1: least another percentage point in the years ahead. And I

627
00:36:41,920 --> 00:36:44,640
Speaker 1: wouldn't be surprised if we saw that towards the end

628
00:36:44,640 --> 00:36:48,680
Speaker 1: of the year. Regarding other measures that I mentioned, measures

629
00:36:48,719 --> 00:36:53,000
Speaker 1: that would be timely and targeted towards individuals or small

630
00:36:53,040 --> 00:36:58,200
Speaker 1: businesses or perhaps some industrial sectors, that's on the table.

631
00:36:58,520 --> 00:37:01,040
Speaker 1: We are in the planet, we are in the discussion

632
00:37:01,160 --> 00:37:06,200
Speaker 1: and planning phase, Jonavan. Again, we have to exercise some

633
00:37:06,280 --> 00:37:10,080
Speaker 1: caution and analysis. We are in touch with everybody in

634
00:37:10,120 --> 00:37:13,719
Speaker 1: the economy, every single sector. They're coming to visit us

635
00:37:13,960 --> 00:37:16,760
Speaker 1: on a daily basis, and the President is deeply involved.

636
00:37:16,960 --> 00:37:19,600
Speaker 1: And my hats off to the Vice President who's leading

637
00:37:19,640 --> 00:37:23,920
Speaker 1: this healthcare task for us. So Johnavan, don't be impatient.

638
00:37:23,960 --> 00:37:26,960
Speaker 1: You've got to exercise some judgment before you jump in.

639
00:37:27,200 --> 00:37:29,640
Speaker 1: But we're on it. Trust me, we're on it. I'm

640
00:37:29,640 --> 00:37:32,520
Speaker 1: telling you this morning, probably more than has been put

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Speaker 1: out publicly, we are on it, and we are looking

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Speaker 1: at these various targeted approaches. Larry, you know I respect

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Speaker 1: you and I appreciate your transparency today and thank you

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Speaker 1: for giving us your time. Larry could that the White

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Speaker 1: House National Economic Castle Director. Thanks for listening to the

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Speaker 1: Bloomberg Surveillance podcast. Subscribe and listen to interviews on Apple Podcasts, SoundCloud,

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Speaker 1: or whichever podcast platform you prefer. I'm on Twitter at

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Speaker 1: Tom Keane before the podcast. You can always catch us worldwide.

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Speaker 1: I'm Bloomberg Radio