1
00:00:03,080 --> 00:00:05,800
Speaker 1: Live from the Bloomberg Interact a Brooker's Studios. This is

2
00:00:05,880 --> 00:00:09,840
Speaker 1: Bloomberg day Break for Thursday, February twenty third. Coming up today,

3
00:00:10,080 --> 00:00:13,640
Speaker 1: the Fed plans more rate hikes to curb inflation. Kennedy

4
00:00:13,720 --> 00:00:16,120
Speaker 1: Yellen says the global economy is in a better place

5
00:00:16,120 --> 00:00:19,840
Speaker 1: today than many predicted, and videos share surge following its

6
00:00:19,840 --> 00:00:23,799
Speaker 1: earnings report. And President Biden calls Russia's nuclear withdrawal a

7
00:00:23,920 --> 00:00:26,720
Speaker 1: big mistake. The National Weather Service says it was indeed

8
00:00:26,720 --> 00:00:29,639
Speaker 1: a tornado in New Jersey this week. Plus the NTSB

9
00:00:29,920 --> 00:00:33,800
Speaker 1: releases its preliminary report today on the Ohio train derailment.

10
00:00:34,280 --> 00:00:37,239
Speaker 1: Michael Barr More ahead, I'm John Stash, Aaron Sports. The

11
00:00:37,280 --> 00:00:40,440
Speaker 1: Islanders beat the Jets, the Rangers play tonight, college basketball

12
00:00:40,479 --> 00:00:44,960
Speaker 1: wins for Saint John's and portam. That's all straight Ahead

13
00:00:45,040 --> 00:00:48,360
Speaker 1: on Bloomberg day Break, The business news you need disturn

14
00:00:48,440 --> 00:00:51,880
Speaker 1: your day in just one fifteen minute podcast each pointing

15
00:00:52,000 --> 00:00:55,720
Speaker 1: on Apples, Spotify, the Bloomberg Business app and everywhere you

16
00:00:55,760 --> 00:01:01,840
Speaker 1: get your podcasts. Good morning, I'm Nathan Hagar and I'm

17
00:01:01,920 --> 00:01:05,080
Speaker 1: kieron Moscow. Here are the stories we're following today. We

18
00:01:05,160 --> 00:01:07,320
Speaker 1: begin with the latest reaction to the minutes from this

19
00:01:07,400 --> 00:01:10,800
Speaker 1: month's FED meeting, officials expect more interest rate hikes will

20
00:01:10,840 --> 00:01:14,560
Speaker 1: be needed to curb inflation. Still, almost all officials backed

21
00:01:14,640 --> 00:01:18,080
Speaker 1: slowing the pace of the encreases. New York Fed President

22
00:01:18,160 --> 00:01:20,880
Speaker 1: John william says it is critical the Bank remains committed

23
00:01:20,920 --> 00:01:24,520
Speaker 1: to its two percent inflation target. Price stability is, in

24
00:01:24,600 --> 00:01:29,679
Speaker 1: fact the foundation of economic prosperity. Without price stability, all

25
00:01:29,720 --> 00:01:32,760
Speaker 1: of the other goals that we have, whether maximum employment

26
00:01:33,000 --> 00:01:36,560
Speaker 1: or low and stable or low interest rates, can't be accomplished.

27
00:01:36,800 --> 00:01:39,640
Speaker 1: So that's an absolute imperative for US. New York Fed

28
00:01:39,680 --> 00:01:42,840
Speaker 1: President John william says demand for goods may keep inflation

29
00:01:42,920 --> 00:01:45,800
Speaker 1: from falling as quickly as sum of expected bets on

30
00:01:45,840 --> 00:01:48,600
Speaker 1: the Fed's policy rate are almost fully pricing in quarter

31
00:01:48,680 --> 00:01:53,280
Speaker 1: point increases at each of the Central Bank's next three meetings, Well, Nathan,

32
00:01:53,280 --> 00:01:55,560
Speaker 1: the Fed and investors will have a couple more key

33
00:01:55,640 --> 00:01:59,160
Speaker 1: economic reports to analyze this morning. Revised data on fourth

34
00:01:59,200 --> 00:02:02,680
Speaker 1: quarter economic growth and weekly jobless claims, and Bloomberg's Vini

35
00:02:02,720 --> 00:02:06,240
Speaker 1: Deale Judais has more. In its initial tally, the government

36
00:02:06,280 --> 00:02:08,919
Speaker 1: said the US economy expanded at a two point nine

37
00:02:08,919 --> 00:02:11,360
Speaker 1: percent pace in a fourth quarter a tax slower than

38
00:02:11,400 --> 00:02:16,160
Speaker 1: the third quarter but respectable. Nonetheless, Bloomberg Economic says today's

39
00:02:16,160 --> 00:02:19,440
Speaker 1: revised data could signal weakness and trade, though the headline

40
00:02:19,440 --> 00:02:23,080
Speaker 1: will remain healthy. Turning to the labor market, jobless claims

41
00:02:23,080 --> 00:02:26,120
Speaker 1: of help below two hundred thousand for five weeks, running

42
00:02:26,120 --> 00:02:30,399
Speaker 1: at historic lows. That's the US economy's best protection against recession.

43
00:02:30,880 --> 00:02:34,080
Speaker 1: Annie del Judais Bloomberg day break, All right, Vinnie, thank you. Meantime,

44
00:02:34,120 --> 00:02:37,520
Speaker 1: Treasury Secretary Janet Yellen says the economy around the world

45
00:02:37,639 --> 00:02:40,960
Speaker 1: is improving. It's fair to say that the global economy

46
00:02:41,200 --> 00:02:44,880
Speaker 1: isn't a bitter place today than many predicted just a

47
00:02:44,919 --> 00:02:48,880
Speaker 1: few months ago. In the full many were worried about

48
00:02:48,919 --> 00:02:52,840
Speaker 1: a sharp economic sludam across the world. Jellen made those

49
00:02:52,840 --> 00:02:55,600
Speaker 1: comments in India, where G twenty leaders are meeting. She

50
00:02:55,720 --> 00:02:58,799
Speaker 1: also says the US intends to quickly nominate a candidate

51
00:02:58,840 --> 00:03:01,720
Speaker 1: to lead the World Bank. The official nominating process to

52
00:03:01,760 --> 00:03:05,639
Speaker 1: replace current President David Malpass begins today. I'm back here

53
00:03:05,639 --> 00:03:08,280
Speaker 1: in the US, Nathan. We're seeing further signs of weakness

54
00:03:08,360 --> 00:03:10,600
Speaker 1: in one of the key sectors of the economy, the

55
00:03:10,680 --> 00:03:14,520
Speaker 1: housing market. According to Real Estate brokerage Redfin. The total

56
00:03:14,600 --> 00:03:17,800
Speaker 1: value of homes declined by two point three trillion dollars

57
00:03:17,800 --> 00:03:20,200
Speaker 1: in the second half of twenty twenty two. That's a

58
00:03:20,320 --> 00:03:23,120
Speaker 1: four point nine percent decline, the biggest drop since two

59
00:03:23,120 --> 00:03:25,440
Speaker 1: thousand and eight. The median home sale price in the

60
00:03:25,520 --> 00:03:28,480
Speaker 1: US was three hundred eighty three thousand dollars last month,

61
00:03:28,720 --> 00:03:31,280
Speaker 1: down from a peak of four hundred thirty three thousand

62
00:03:31,280 --> 00:03:33,919
Speaker 1: in May. On the earnings front, Karen's shares of Nvidia

63
00:03:34,000 --> 00:03:36,960
Speaker 1: are up eight percent in early trading. The chip maker

64
00:03:37,000 --> 00:03:39,440
Speaker 1: gave a bullish revenue outlook for the current quarter. We

65
00:03:39,520 --> 00:03:42,640
Speaker 1: get the story from Bloomberg's Charlie Pellett. It suggests that

66
00:03:42,760 --> 00:03:47,880
Speaker 1: it's push into artificial intelligence processors is helping offset weakening

67
00:03:47,920 --> 00:03:51,320
Speaker 1: demand for personal computer chips. Of a company who has

68
00:03:51,440 --> 00:03:55,600
Speaker 1: parlayed its dominance of graphics processors into a strong position

69
00:03:55,640 --> 00:03:59,840
Speaker 1: in the growing market for AI hardware, It's chips excel

70
00:04:00,120 --> 00:04:04,000
Speaker 1: at the kind of parallel processing that allows computers to

71
00:04:04,040 --> 00:04:07,400
Speaker 1: make sense of large amounts of data and train software

72
00:04:07,480 --> 00:04:12,760
Speaker 1: to make decisions. In New York, Charlie Bloomberg, daybreak. All right, Charlie,

73
00:04:12,800 --> 00:04:15,720
Speaker 1: thank you all Attorney to geopolitics now The UN General

74
00:04:15,720 --> 00:04:19,279
Speaker 1: Assembly is set to vote on a peace resolution in Ukraine,

75
00:04:19,640 --> 00:04:23,040
Speaker 1: with the one year mark since Russia's invasion coming up tomorrow,

76
00:04:23,160 --> 00:04:26,440
Speaker 1: Bloomberg said, Baxter has a story. The vote is expected

77
00:04:26,480 --> 00:04:28,880
Speaker 1: to take place at the end of the emergency session.

78
00:04:29,400 --> 00:04:33,000
Speaker 1: US Ambassador the UN, Linda Thomas Greenfield says the effort

79
00:04:33,160 --> 00:04:35,920
Speaker 1: is important. We should never give up on the potential

80
00:04:35,960 --> 00:04:40,640
Speaker 1: for diplomacy. Are the power of dialogue? Are the urgency

81
00:04:40,800 --> 00:04:44,000
Speaker 1: of peace? She says. The atrocities cannot go on, the

82
00:04:44,040 --> 00:04:49,680
Speaker 1: bombing of kindergartens and high schools and hospitals, the slaughters

83
00:04:49,760 --> 00:04:54,760
Speaker 1: of innocent civilians. Greenfield says, Vladimir Putin chose the war.

84
00:04:55,360 --> 00:04:58,360
Speaker 1: Now it's time to end it. In San Francisco, I'm

85
00:04:58,360 --> 00:05:01,320
Speaker 1: at Baxter Bloomberg Daybreak. You added adding to the tensions,

86
00:05:01,400 --> 00:05:04,039
Speaker 1: Vladimir Putin is pulling Russia out of New Start, the

87
00:05:04,120 --> 00:05:07,479
Speaker 1: last nuclear treaty between his country and the US. President.

88
00:05:07,600 --> 00:05:10,360
Speaker 1: Biden says that is a big mistake, but he's trying

89
00:05:10,360 --> 00:05:13,279
Speaker 1: to play down concerns that it poses a threat. I've

90
00:05:13,360 --> 00:05:15,560
Speaker 1: not seen anything. We've not seen anything at where there's

91
00:05:15,600 --> 00:05:18,240
Speaker 1: a change in this posture and what they're doing. The

92
00:05:18,360 --> 00:05:22,719
Speaker 1: idea that somehow this means they're thinking of using nuclear weapons.

93
00:05:22,960 --> 00:05:26,800
Speaker 1: International content Bostick must there's no evidence of that. President

94
00:05:26,880 --> 00:05:28,640
Speaker 1: Biden spoke with a VC News at the end of

95
00:05:28,640 --> 00:05:31,240
Speaker 1: his trip to Eastern Europe where he bolstered NATO nearly

96
00:05:31,279 --> 00:05:34,080
Speaker 1: a year into the war in Ukraine, and finally Nathan

97
00:05:34,200 --> 00:05:36,680
Speaker 1: a look at the lack of gender equality in the

98
00:05:36,720 --> 00:05:39,920
Speaker 1: workplace in the UK, only one in ten who run

99
00:05:40,000 --> 00:05:43,960
Speaker 1: Britain's portfolios or women. Now. Veteran investor Helena Morrissey is

100
00:05:43,960 --> 00:05:46,480
Speaker 1: setting her sights on tackling the lack of women in

101
00:05:46,560 --> 00:05:49,880
Speaker 1: top finance jobs as part of a special report. Morrissey

102
00:05:49,920 --> 00:05:52,680
Speaker 1: has been speaking to WATCH about her new Pathway program

103
00:05:52,920 --> 00:05:55,920
Speaker 1: and why diversity efforts so far have failed to move

104
00:05:55,960 --> 00:05:59,200
Speaker 1: the needle. I do think there's an image problem that

105
00:06:00,040 --> 00:06:01,760
Speaker 1: will look and they think, oh, if my management's not

106
00:06:01,800 --> 00:06:04,320
Speaker 1: for me, it'll be very isolated to be a woman.

107
00:06:04,520 --> 00:06:06,960
Speaker 1: It's kind of macho environment. And I think there is

108
00:06:07,000 --> 00:06:09,560
Speaker 1: still though a bit of a sort of cultural impediment

109
00:06:09,640 --> 00:06:12,680
Speaker 1: as well. I think many men now in vestally in

110
00:06:12,720 --> 00:06:15,640
Speaker 1: our industry really are just as frustrated as the women

111
00:06:15,680 --> 00:06:18,479
Speaker 1: that we're not seeing more progress and Morrissey's program is

112
00:06:18,480 --> 00:06:21,320
Speaker 1: currently working with sixty women from thirty three firms in

113
00:06:21,360 --> 00:06:25,600
Speaker 1: a bid to increased gender diversity across senior positions in finance.

114
00:06:29,240 --> 00:06:31,360
Speaker 1: Thirty eight degrees in New York. We are tracking that

115
00:06:31,440 --> 00:06:33,960
Speaker 1: massive winter storm in the upper Midwest for US. It's

116
00:06:34,000 --> 00:06:36,159
Speaker 1: going to turn partly sunny and mild today, going up

117
00:06:36,200 --> 00:06:38,880
Speaker 1: to near fifty five degrees. It'll be breezy down to

118
00:06:38,960 --> 00:06:41,080
Speaker 1: forty tonight. Time now to take a look at some

119
00:06:41,120 --> 00:06:42,960
Speaker 1: of the other stories making news in New York and

120
00:06:43,080 --> 00:06:45,640
Speaker 1: around the world with Bloomberg's Michael var Good morning, Michael,

121
00:06:45,680 --> 00:06:48,839
Speaker 1: Good morning, Nathan. The National Weather Service, asimated official, it

122
00:06:48,960 --> 00:06:51,599
Speaker 1: was indeed a tornado that touched down in parts of

123
00:06:51,640 --> 00:06:55,080
Speaker 1: Mercer County, New Jersey Tuesday. The e F two tornado

124
00:06:55,200 --> 00:06:57,480
Speaker 1: had estimated wins of up to one hundred and fifteen

125
00:06:57,480 --> 00:07:00,840
Speaker 1: miles per hour and to our destructive path for almost

126
00:07:00,880 --> 00:07:04,839
Speaker 1: six miles. The cleanup continues today. As you mentioned, Nathan,

127
00:07:04,880 --> 00:07:08,400
Speaker 1: a massive winners storm is pummeling the central US. It

128
00:07:08,440 --> 00:07:11,760
Speaker 1: has dumped record amounts of snow and canceled hundreds of flights.

129
00:07:11,960 --> 00:07:15,640
Speaker 1: Storm warnings and advisories stretch across almost the entire northern

130
00:07:15,760 --> 00:07:19,360
Speaker 1: US with the blizzard warnings in Minnesota and the Dakotas.

131
00:07:19,760 --> 00:07:23,360
Speaker 1: In the Chicago area, the ice made for dangerous road conditions.

132
00:07:23,400 --> 00:07:26,600
Speaker 1: This motorist is in Antioch Lake County. The roads kind

133
00:07:26,600 --> 00:07:30,200
Speaker 1: of got a lot icier. My driveways complete ice right now.

134
00:07:30,320 --> 00:07:33,000
Speaker 1: About one hundred thousand people in the Chicago area are

135
00:07:33,040 --> 00:07:37,880
Speaker 1: without power. NTSB Inspectors will release its preliminary report on

136
00:07:37,920 --> 00:07:42,040
Speaker 1: the Norfolk Southern train derailment today. Almost forty rail cars

137
00:07:42,200 --> 00:07:45,320
Speaker 1: ran off the tracks two weeks ago in East Palestine, Ohio,

138
00:07:45,720 --> 00:07:50,480
Speaker 1: creating a toxic spill. Today, Transportation Secretary Pete Budajage will

139
00:07:50,600 --> 00:07:54,840
Speaker 1: visit the area. Yesterday, former President Trump was in East Palestine,

140
00:07:55,120 --> 00:07:58,840
Speaker 1: telling residents that they are not forgotten. It's been weeks

141
00:07:58,840 --> 00:08:02,800
Speaker 1: since Americans have been inspired. They've just watched this over

142
00:08:02,840 --> 00:08:05,120
Speaker 1: the weeks. They've been inspired by your strength and your

143
00:08:05,120 --> 00:08:07,920
Speaker 1: courage and how you've come together to stand up for

144
00:08:08,280 --> 00:08:12,960
Speaker 1: the families in your area. Trump, also a presidential candidate,

145
00:08:13,040 --> 00:08:16,400
Speaker 1: handed out make America Great Again hats to residents. The

146
00:08:16,520 --> 00:08:19,920
Speaker 1: Orlando community is reeling after multiple shootings, claiming the life

147
00:08:19,960 --> 00:08:22,360
Speaker 1: of a nine year old child, a young woman, and

148
00:08:22,440 --> 00:08:25,239
Speaker 1: a TV station. News employee who was on the scene

149
00:08:25,280 --> 00:08:29,400
Speaker 1: covering the earlier shooting. Two more victims are in critical condition.

150
00:08:29,600 --> 00:08:32,679
Speaker 1: Orange County Sheriff John Minus says the suspect in all

151
00:08:32,760 --> 00:08:37,120
Speaker 1: three shootings, nineteen year old Keith Melvin Moses, is in custody.

152
00:08:37,480 --> 00:08:40,880
Speaker 1: At nineteen, he has a lengthy criminal history to include

153
00:08:40,920 --> 00:08:45,880
Speaker 1: gun charges, aggravatedness, aggravated battery and assault with a daily weapon,

154
00:08:46,240 --> 00:08:50,160
Speaker 1: burglary and grand theft charges. Sheriff Minus says that's unclear

155
00:08:50,200 --> 00:08:52,720
Speaker 1: if he was targeting the news crew. A pack of

156
00:08:52,800 --> 00:08:56,160
Speaker 1: headphone thieves are on the loose Manhattan. According to the NYPD,

157
00:08:56,320 --> 00:08:59,360
Speaker 1: they are riding through on moopads and yanking Apple air

158
00:08:59,440 --> 00:09:04,240
Speaker 1: pods Max headphones off unsuspecting pedestrians heads. They've struck more

159
00:09:04,280 --> 00:09:06,960
Speaker 1: than twenty times less than a month. Global nein Who's

160
00:09:06,960 --> 00:09:09,160
Speaker 1: twenty four hours a day, powered by more than twenty

161
00:09:09,160 --> 00:09:11,319
Speaker 1: seven hundred journalist and analysts and over one hundred and

162
00:09:11,320 --> 00:09:14,319
Speaker 1: twenty countries. I'm Michael Barr. This is Bloomberg Naked, shaking

163
00:09:14,440 --> 00:09:21,120
Speaker 1: my head. Thank you, Michael time Alf for the Bloomberg

164
00:09:21,120 --> 00:09:23,120
Speaker 1: Sports update brought to by Trice State out of Morning,

165
00:09:23,200 --> 00:09:25,360
Speaker 1: John Stanshower and gim Morning Nathan, We're getting closer to

166
00:09:25,400 --> 00:09:28,800
Speaker 1: March Madness. Final four will take place in Euston. The

167
00:09:28,920 --> 00:09:31,560
Speaker 1: number one team in the nation is Euston Cougars. Last

168
00:09:31,600 --> 00:09:34,359
Speaker 1: night one by thirty, they're twenty six and two. Alabama's

169
00:09:34,400 --> 00:09:38,480
Speaker 1: ranked second Crimson Tide wanted South Carolina an overtime game

170
00:09:38,520 --> 00:09:41,600
Speaker 1: winning hoop by their star freshman Brandon Miller. He scored

171
00:09:41,679 --> 00:09:45,040
Speaker 1: forty one points. This comes just two days after police

172
00:09:45,040 --> 00:09:48,520
Speaker 1: in Tuscaloosa revealed that Miller was once in possession of

173
00:09:48,559 --> 00:09:51,079
Speaker 1: the gun that they say was later used in a murder.

174
00:09:51,080 --> 00:09:55,080
Speaker 1: He does not face any charges acc upset BC beats

175
00:09:55,120 --> 00:09:58,800
Speaker 1: six ranked Virginia by fifteen, Big East Yukon by eighteen

176
00:09:59,240 --> 00:10:03,160
Speaker 1: over prov Saint John's having a rough year, but Redstorm

177
00:10:03,160 --> 00:10:06,640
Speaker 1: gotta win at Georgetown seventy nine to seventy. Also locally,

178
00:10:06,679 --> 00:10:09,679
Speaker 1: Fordham survived to scare at Loyola, winning by two, and

179
00:10:09,760 --> 00:10:12,640
Speaker 1: the Rams go to twenty two and six on the season.

180
00:10:12,880 --> 00:10:15,320
Speaker 1: Iona has won twenty games of instrudn't see if the

181
00:10:15,320 --> 00:10:18,280
Speaker 1: Gaels Hall of Fame coach Rick Patino moves on to

182
00:10:18,400 --> 00:10:22,280
Speaker 1: a bigger job like Saint John's or Georgetown. Reportedly Maryland,

183
00:10:22,520 --> 00:10:24,800
Speaker 1: who wanted to hire Patino last year, but would have

184
00:10:24,800 --> 00:10:26,800
Speaker 1: had to pay a large buyout, and there is no

185
00:10:26,960 --> 00:10:31,040
Speaker 1: longer a buyout in Patino's contract. TV ratings for last

186
00:10:31,080 --> 00:10:35,559
Speaker 1: Sunday's NBA All Star Game lowest ever. Denver's Michael Malone

187
00:10:35,600 --> 00:10:38,920
Speaker 1: coached the game, called it the worst basketball game ever play.

188
00:10:39,000 --> 00:10:42,040
Speaker 1: The NBA will return to play in some defense as

189
00:10:42,040 --> 00:10:45,120
Speaker 1: it returns from the break tonight. Nickston NEETs have road

190
00:10:45,160 --> 00:10:47,680
Speaker 1: games tomorrow. Rangers a couple of losses since that seven

191
00:10:47,720 --> 00:10:50,679
Speaker 1: game win streak. They played tonight in Detroit. Islanders last

192
00:10:50,760 --> 00:10:53,280
Speaker 1: night bate Winnipeg two to one on a Simon Holtstreet

193
00:10:53,320 --> 00:10:56,680
Speaker 1: goal midway through the third period. John stash Ellard Bloomberg

194
00:10:56,760 --> 00:11:03,200
Speaker 1: Sports from coast to coast, from New York to San Francisco,

195
00:11:03,400 --> 00:11:07,840
Speaker 1: Boston to Washington, DC, nationwide on Sirius Exam, the Bloomberg

196
00:11:07,920 --> 00:11:11,960
Speaker 1: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

197
00:11:12,840 --> 00:11:15,600
Speaker 1: Good morning. I'm Nathan Hagar. Rates need to keep going

198
00:11:15,679 --> 00:11:18,040
Speaker 1: up to get inflation back to target. That is the

199
00:11:18,120 --> 00:11:21,040
Speaker 1: main takeaway from the minutes of the fed's latest policy meeting,

200
00:11:21,040 --> 00:11:23,240
Speaker 1: which just how high they need to go in how quickly.

201
00:11:23,800 --> 00:11:25,840
Speaker 1: That's still an open question for markets. So let's bring

202
00:11:25,920 --> 00:11:28,640
Speaker 1: in Bloomberg Markets correspondent Valerie tied Tell to get some

203
00:11:28,679 --> 00:11:32,199
Speaker 1: more takeaways from the latest Fed minutes. What stands out

204
00:11:32,240 --> 00:11:35,800
Speaker 1: to you, Valerie, There was a few things. Notably, the

205
00:11:35,880 --> 00:11:39,400
Speaker 1: discussion around the hike sized in between twenty five and

206
00:11:39,440 --> 00:11:42,800
Speaker 1: fifty basis points. A few wanted fifty basis points, so

207
00:11:42,800 --> 00:11:45,960
Speaker 1: that implies that Bullard and Mester probably convinced one other

208
00:11:46,000 --> 00:11:48,000
Speaker 1: person with win the FOMC, to go for that, and

209
00:11:48,080 --> 00:11:50,320
Speaker 1: that was really kind of the hawkish risk for the market.

210
00:11:51,200 --> 00:11:53,680
Speaker 1: The other things is that there were no mention of pausing.

211
00:11:53,880 --> 00:11:56,040
Speaker 1: Powell kind of hinted in his Q and A that

212
00:11:56,120 --> 00:11:58,480
Speaker 1: there was, but the minutes didn't really show it. The

213
00:11:58,559 --> 00:12:03,200
Speaker 1: minutes also didn't didn't state the word disinflation, which Powell

214
00:12:03,400 --> 00:12:05,640
Speaker 1: used repeatedly in that Q and A and in that

215
00:12:05,679 --> 00:12:08,600
Speaker 1: press conference, so that was surprising to me. The other

216
00:12:08,640 --> 00:12:11,920
Speaker 1: thing was is that they focused solely on the upside

217
00:12:11,960 --> 00:12:14,760
Speaker 1: risk to their inflation outlook as being key to their

218
00:12:14,760 --> 00:12:18,240
Speaker 1: policy going forward. Remember, going into this meaning we had

219
00:12:18,280 --> 00:12:21,760
Speaker 1: a string of softer than expected CPI prints, there was

220
00:12:21,840 --> 00:12:25,440
Speaker 1: some expectation that perhaps they would discuss the downside risk

221
00:12:25,480 --> 00:12:28,160
Speaker 1: to the inflation outlook and the policy that would entail

222
00:12:28,200 --> 00:12:32,400
Speaker 1: from that. So another sign that data dependency continues to

223
00:12:32,480 --> 00:12:34,600
Speaker 1: be the mantra at this FED. Do we have a

224
00:12:34,640 --> 00:12:37,280
Speaker 1: better sense, judging from the minutes, about what they need

225
00:12:37,280 --> 00:12:40,520
Speaker 1: to see in the data to get to this idea

226
00:12:40,600 --> 00:12:45,120
Speaker 1: of at least slowing down or pausing rate hikes. There

227
00:12:45,160 --> 00:12:48,360
Speaker 1: really wasn't any clues in terms of what it would

228
00:12:48,400 --> 00:12:51,840
Speaker 1: what they would need to pause. There was really no

229
00:12:51,960 --> 00:12:55,240
Speaker 1: discussion of the circumstances in which they need to see

230
00:12:55,280 --> 00:12:57,760
Speaker 1: that the data going forward, though. We do have the

231
00:12:57,800 --> 00:13:01,640
Speaker 1: core PC on Friday. Piece is the Fed's favored measure

232
00:13:01,640 --> 00:13:05,319
Speaker 1: of inflation. It's what they use in their SEP forecast,

233
00:13:05,440 --> 00:13:08,040
Speaker 1: their summary of economic projections, So keep an eye on

234
00:13:08,080 --> 00:13:11,160
Speaker 1: that on Friday. And then following on Friday, we have

235
00:13:11,480 --> 00:13:14,880
Speaker 1: five FED speakers due to speak. All three of the

236
00:13:15,000 --> 00:13:18,480
Speaker 1: vocal hawks will hear from that's Mestered, Buller, and Waller.

237
00:13:18,559 --> 00:13:21,400
Speaker 1: So it might be a fun Friday for the markets. Yeah,

238
00:13:21,440 --> 00:13:24,520
Speaker 1: yet more commentary from Mester. It'll be interesting to hear

239
00:13:24,559 --> 00:13:27,280
Speaker 1: from her, in particular, given that we did see that

240
00:13:27,400 --> 00:13:31,600
Speaker 1: a few market prints or FED participants were talking about

241
00:13:31,640 --> 00:13:34,080
Speaker 1: the idea of fifty basis points. But in terms of

242
00:13:34,120 --> 00:13:38,760
Speaker 1: the PCE valerie, there's been so much focus on wage

243
00:13:38,760 --> 00:13:42,400
Speaker 1: pressures feeding into inflation. Do we have any idea from

244
00:13:42,440 --> 00:13:44,720
Speaker 1: the people you're speaking to about what they expect to

245
00:13:44,760 --> 00:13:51,360
Speaker 1: see in that core inflation data feeds into wages. There

246
00:13:51,520 --> 00:13:54,560
Speaker 1: is an expectation that the Friday's print doesn't come in hot.

247
00:13:54,600 --> 00:13:56,560
Speaker 1: We've seen a lot of upgrades on the street in

248
00:13:56,679 --> 00:14:01,520
Speaker 1: terms of banks upgrading their forecast. Ubs Goldman and a

249
00:14:01,520 --> 00:14:04,319
Speaker 1: few others upgraded it to the core PC month on

250
00:14:04,440 --> 00:14:07,000
Speaker 1: month from point four to point five, and that comes

251
00:14:07,040 --> 00:14:10,160
Speaker 1: after that hot CPI and the hot PPI print. But

252
00:14:10,280 --> 00:14:14,160
Speaker 1: for really for a measure of wage inflation, for wage pressures,

253
00:14:14,160 --> 00:14:15,920
Speaker 1: we're going to have to look. Next week we get

254
00:14:15,920 --> 00:14:19,440
Speaker 1: an updated reading on the unit labor cost. It is

255
00:14:19,440 --> 00:14:21,600
Speaker 1: going to be the second and final reading of that.

256
00:14:22,000 --> 00:14:25,000
Speaker 1: But note the big revisions upward and that a few

257
00:14:25,040 --> 00:14:28,160
Speaker 1: months ago led to a broad market selloff, So have

258
00:14:28,240 --> 00:14:30,280
Speaker 1: an eye on that one as well. It's next Thursday.

259
00:14:30,280 --> 00:14:33,240
Speaker 1: Now we'll also have an eye on who's going to

260
00:14:33,360 --> 00:14:37,240
Speaker 1: be making these decisions. With one of the most vocal

261
00:14:37,440 --> 00:14:41,440
Speaker 1: doves on the Federal reserve, Hile Brainerd, set to depart

262
00:14:41,560 --> 00:14:44,080
Speaker 1: as Vice chair this week, and now we're getting some

263
00:14:44,120 --> 00:14:48,480
Speaker 1: clues on who could potentially be in line to succeed her. Yeah,

264
00:14:48,480 --> 00:14:50,600
Speaker 1: there was a report out from the Wall Street Journal

265
00:14:51,000 --> 00:14:54,440
Speaker 1: that discussed two candidates, both of which were economists under

266
00:14:54,480 --> 00:14:58,520
Speaker 1: the Obama administration, one of which she co authored a

267
00:14:58,600 --> 00:15:02,520
Speaker 1: peace in twenty nineteen that concluded that a three percent

268
00:15:02,560 --> 00:15:05,240
Speaker 1: inflation target would have been better for the economy coming

269
00:15:05,240 --> 00:15:08,680
Speaker 1: out of the Great Recession. So you could you could

270
00:15:08,760 --> 00:15:11,400
Speaker 1: imply from this that Biden is really looking for a

271
00:15:11,520 --> 00:15:14,960
Speaker 1: Dove to replace Lale Brainerd in that pivotal vice chair seat.

272
00:15:15,240 --> 00:15:17,840
Speaker 1: We don't know when we expect to hear this from Biden,

273
00:15:17,920 --> 00:15:19,840
Speaker 1: but we do hope it soon. We know that the

274
00:15:19,880 --> 00:15:24,280
Speaker 1: Fed canvens again in a month's time, and ideally that

275
00:15:24,440 --> 00:15:26,760
Speaker 1: vice chair seat would be taken by then. Although it

276
00:15:26,880 --> 00:15:30,800
Speaker 1: is interesting to hear that idea of changing the inflation

277
00:15:30,920 --> 00:15:34,400
Speaker 1: target when we've gotten some pretty strong rhetoric from New

278
00:15:34,480 --> 00:15:37,480
Speaker 1: York Fed President John Williams, who is so influential on

279
00:15:37,520 --> 00:15:40,480
Speaker 1: this Fed, that two percent needs to be the way

280
00:15:40,480 --> 00:15:44,120
Speaker 1: to go. Yeah, he spoke last night and did discuss

281
00:15:44,160 --> 00:15:46,720
Speaker 1: that two percent inflation target. But also Powell has really

282
00:15:46,760 --> 00:15:50,720
Speaker 1: pushed back on that idea that I higher inflation target

283
00:15:50,760 --> 00:15:53,760
Speaker 1: would be more suitable, kind of saying that you don't

284
00:15:53,880 --> 00:15:55,920
Speaker 1: change the goal pulse in the middle of a game.

285
00:15:56,960 --> 00:16:00,400
Speaker 1: Maybe there will be time to review the inflation target,

286
00:16:00,440 --> 00:16:02,920
Speaker 1: but it's not going to be in this current cycle

287
00:16:03,000 --> 00:16:05,520
Speaker 1: until they get inflation back to target. That's kind of

288
00:16:05,520 --> 00:16:07,800
Speaker 1: been the words we have heard from Powell. I don't

289
00:16:07,800 --> 00:16:10,160
Speaker 1: really see him shifting on that, but the fact that

290
00:16:10,840 --> 00:16:13,840
Speaker 1: Biden would be pushing to get a dove into this seat,

291
00:16:13,920 --> 00:16:16,440
Speaker 1: you know, it could change the discussion based on the

292
00:16:16,520 --> 00:16:19,240
Speaker 1: timeframe at which they want to get inflation back to target.

293
00:16:19,840 --> 00:16:22,960
Speaker 1: Powell has prepared us for it to be a long process,

294
00:16:23,480 --> 00:16:26,080
Speaker 1: kind of implying that they're okay with inflation running hot

295
00:16:26,120 --> 00:16:28,840
Speaker 1: for maybe a few months longer, if that means we

296
00:16:28,920 --> 00:16:33,000
Speaker 1: don't risk a hard landing. This is Bloomberg day Break Today,

297
00:16:33,160 --> 00:16:35,920
Speaker 1: your morning brief on the stories making news from Wall

298
00:16:35,960 --> 00:16:38,960
Speaker 1: Street to Washington and beyond. Look for us on your

299
00:16:39,040 --> 00:16:43,440
Speaker 1: podcast feed at six am Eastern each morning on Apple, Spotify,

300
00:16:43,560 --> 00:16:46,480
Speaker 1: and anywhere else you get your podcasts. You can also

301
00:16:46,560 --> 00:16:49,560
Speaker 1: listen live each morning starting at five am Wall Street

302
00:16:49,600 --> 00:16:52,600
Speaker 1: time on Bloomberg eleven three zero in New York, Bloomberg

303
00:16:52,640 --> 00:16:55,600
Speaker 1: ninety nine one in Washington, Bloomberg one oh six one

304
00:16:55,680 --> 00:16:58,920
Speaker 1: in Boston, and Bloomberg nine to sixty in San Francisco.

305
00:16:59,240 --> 00:17:02,440
Speaker 1: Our flagship New York station is also available on your

306
00:17:02,480 --> 00:17:07,879
Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.

307
00:17:07,960 --> 00:17:11,000
Speaker 1: Listen coast to coast on the Bloomberg Business app, Serius

308
00:17:11,119 --> 00:17:15,080
Speaker 1: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

309
00:17:15,160 --> 00:17:18,360
Speaker 1: dot com. I'm Nathan Hager, Andy, I'm Karen Moscow. Join

310
00:17:18,440 --> 00:17:21,240
Speaker 1: us again tomorrow morning for all the news you need

311
00:17:21,280 --> 00:17:24,280
Speaker 1: to start your day right here on Bloomberg Daybreak