Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day
Speaker 1: Break for Tuesday, May sixteenth.
Speaker 2: Coming up today, doubts on the dead Speaker McCarthy says
Speaker 2: he's nowhere near a deal with President Biden.
Speaker 1: The US prepares to buy more oil to replenish the
Speaker 1: strategic reserves.
Speaker 2: A top FED official favors pausing great hikes, and.
Speaker 1: Sources say a megadeal in the biotech industry will be
Speaker 1: challenged by regulators.
Speaker 3: Former New York Mayor Rudy Giuliani deni as sexual assault allegations.
Speaker 3: Plus a gunman kills three people while randomly shooting in
Speaker 3: the New Mexico neighborhood. I'm Michael Barr. More ahead from.
Speaker 4: John Stas showering towards the Yankees one in Toronto, the
Speaker 4: Mets lost in Washington. It's down of the final four
Speaker 4: in the Stanley Cup playoff.
Speaker 5: That's all straight ahead on Bloomberg day Break, The Business
Speaker 5: News You need to starn your day in just one
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 5: Business app, and everywhere you get your podcasts.
Speaker 2: Good morning, I'm Nathan.
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 2: All eyes are back on Washington today for a second
Speaker 2: round of talks on the debt ceiling, with the clock
Speaker 2: ticking toward a potential government default. House Speaker Kevin McCarthy
Speaker 2: says he is nowhere close to a deal with President Biden.
Speaker 5: We only have so.
Speaker 6: Many days left.
Speaker 2: The President decided to wait one hundred.
Speaker 7: Days before he would negotiate.
Speaker 2: He treated this the same way he treated the border.
Speaker 2: He wanted to ignore the problem. Speaker McCarthy says staff
Speaker 2: level talks have not been productive. The President is insisting
Speaker 2: on a clean debt ceiling increase and leaving talks on
Speaker 2: spending to the budget process. But former White House Budget
Speaker 2: Director Mick mulvaney says it seems there's never a right
Speaker 2: time to talk about spending in Washington.
Speaker 8: Apparently, it's not when we do a budget, because that
Speaker 8: leads to a government shutdown. We can't do that. We
Speaker 8: can't do it when i'm debt ceiling because that leads
Speaker 8: to default on the day. But when it is a
Speaker 8: good time. It doesn't seem as ever a good time
Speaker 8: in Washington, DC for some people, at least to talk
Speaker 8: about spending. Less a lot of folks never want to
Speaker 8: have that discuss and that's where I think frustrates a
Speaker 8: lot of Republicans. Just look, we get it. We'd rather
Speaker 8: not talk about it here, We'd rather talk about it
Speaker 8: on a regular day, but no one talks about it
Speaker 8: with us.
Speaker 2: Former White House Budget Director mc mulvaney spoke with our
Speaker 2: Washington correspondent Joe Matthew on Bloomberg's Sound on Catch the
Speaker 2: show weekdays at one pm Eastern on Bloomberg Radio or
Speaker 2: on demand wherever you get your podcasts.
Speaker 1: Well, Nathan, the US is already paying a price for
Speaker 1: its failure to raise the dead limit. That's the word
Speaker 1: from Treasury Secretary Jenety Yellen and a letter can congressional leaders.
Speaker 1: Yellen said, quote, We've already seen Treasury's borrowing costs increase
Speaker 1: substantially for securities maturing in early June. Yellen says that's
Speaker 1: the time when the Treasury risks running out of cash
Speaker 1: for its obligations.
Speaker 2: Well, the debt sailing negotiations continue, Karen, the US is
Speaker 2: buying more oil. The Energy Department's preparing to purchase up
Speaker 2: to three million barrels of crude to refill its strategic
Speaker 2: petroleum Reserve the country's emergency stockpiles at its lowest level
Speaker 2: since nineteen eighty three, after releasing more than two hundred
Speaker 2: million barrels to curb high energy prices last year and
Speaker 2: checking prices right now now NYMXED crewed is up twelve cents.
Speaker 2: It's seventy one dollars twenty three cents a barrel.
Speaker 1: Well, turning to the economy now, Nathan, there are more
Speaker 1: signs the Fed may hold off on more rate hikes
Speaker 1: to be caught up with Atlanta FED President Rafael Bostik.
Speaker 7: In today's environment where there's so much uncertainty in the economy,
Speaker 7: I don't think we can really rule out anything. If
Speaker 7: I had to have a vote right now, i'd probably
Speaker 7: vote to hold. But we've got two more inflation readings,
Speaker 7: we have a jobs report that's got to come out.
Speaker 7: There's a lot more information we're going to have as
Speaker 7: to what's going on.
Speaker 1: And Atlanta FED President Rafael Bostik made the comments in
Speaker 1: an interview with Bloombergy, So Michael McKee stay tuned for
Speaker 1: more of that conversation coming up shortly on Bloombergy Daybreak.
Speaker 2: Now, Under the equity markets, Karen where we're finding out
Speaker 2: what some of the biggest names on Wall Street have
Speaker 2: been doing with their money. Bloomberg's John Tucker joins us
Speaker 2: with details.
Speaker 9: John Yeah Nathan required Quarterly reports filed with regulators show
Speaker 9: Warren Buffett's Berkshire Hathaway made a bet on Capital One
Speaker 9: Financial during the regional bank turmoil. It may have paid
Speaker 9: off if Capital One surged as much is nine point
Speaker 9: six percent. Overall, Buffett was a net seller of stocks
Speaker 9: in the first quarter and pocket at ten point four
Speaker 9: billion dollars. Michael Burry, the money manager made famous in
Speaker 9: The Big Short, now has a big long when it
Speaker 9: comes to China. He boosted bullish bets on e commerce
Speaker 9: giantsjad dot Com and to Ali bomba group. He made
Speaker 9: those bets even as other hedge funds cool on China,
Speaker 9: and the filings also show activists investor Nelson Peltz recently
Speaker 9: adding to his stake in Walt Disney after calling off
Speaker 9: a proxy fight earlier this year in New York. I'm
Speaker 9: John Tucker, Bloomberg day break.
Speaker 1: All right, John? Thanks Meantime, the mood among global fund
Speaker 1: managers appears to be souring, According to Bank of America's
Speaker 1: latest survey investors are flogging to cash amid concerns at
Speaker 1: a recession and credit cruncher looming. The sentiment among fund
Speaker 1: managers and may deteriorated to the most bearish this year.
Speaker 1: Sixty five percent of survey participants say they now expect
Speaker 1: a weaker economy.
Speaker 2: Well this morning, Karen Omega deal in the biotech in
Speaker 2: my history is in jeopardy. Amgen's twenty seven billion dollar
Speaker 2: agreement to buy Horizon Therapeutics will be challenged by federal regulators.
Speaker 2: Sources say the Federal Trade Commissions expected to file a
Speaker 2: lawsuit today to block the purchase. It'll argue the tie
Speaker 2: up with hamper innovation and slow the pace of drug development.
Speaker 2: Shares of Horizon are down eighteen percent in early trading.
Speaker 1: On another corporate news, Nathan Wells Fargo has agreed to
Speaker 1: pay one billion dollars to settle a shareholder lawsuit. Plaintiff's
Speaker 1: accuse the bank of making misleading statements about its compliance
Speaker 1: with federal consent orders that was in the wake of
Speaker 1: the twenty sixteen scandal over opening unauthorized accounts.
Speaker 2: Also are in the banking industry, Care and more job
Speaker 2: cuts maybe on the way. Bloomberg News has learned Morgan
Speaker 2: Stanley's considering a seven percent cut to its Asia Pacific
Speaker 2: investment bank. Deal making slowed in China due to weaker
Speaker 2: economic growth and worsening US relations. The cuts are part
Speaker 2: of Morgan's plan to reduce about three thousand jobs globally
Speaker 2: by the end of this quarter.
Speaker 1: And finally, Nathan Elon Musk is being tied up in
Speaker 1: controversy surrounding Jeffrey Epstein. The Tesla CEO is being issued
Speaker 1: a subpoenas JP Morgan's lawsuit over Epstein, and Bloomberg's Ed
Speaker 1: Baxter has the story.
Speaker 10: This comes from the US Virgin Islands, where the US
Speaker 10: claims JP Morgan Chase knowingly benefited from Jeffrey Epstein's sex
Speaker 10: trafficking operation. The core papers say the government had reasonab
Speaker 10: believe Epstein may have referred or attempted to refer Musk
Speaker 10: as a client. Several other billionaires, including Google co founders
Speaker 10: Larry Page and Sergei Brinn, have also been issued subpoenas.
Speaker 10: The paperwork asks for any documents regarding Epstein's involvement in
Speaker 10: human trafficking in San Francisco. I'm at Baxter Bloomberg Daybreak
Speaker 10: straight ahead.
Speaker 2: Your latest local headlines in the check of sports. This
Speaker 2: is Bloomberg Time Now to take a look at some
Speaker 2: of the other stories making news in New York and
Speaker 2: around the world, with Bloomberg's Michael Vaar.
Speaker 3: Good morning, Michael, Good morning Nathan. Parents and school children
Speaker 3: in New York City are expressing their concerns about the
Speaker 3: city's plan to temporarily house some asylum seekers at school
Speaker 3: gyms as bus loads of Mike griants keep arriving in
Speaker 3: the city. While some parents say the migrants need help,
Speaker 3: they are concerned about safety. This woman lives near PS
Speaker 3: one eighty eight in Coney Island.
Speaker 6: Why don't we put them in Gracie Mansion. You look
Speaker 6: at some place to put them, Put them into people
Speaker 6: who are elected who put this in place, put them
Speaker 6: in their backyards, because you've dumped on us long enough.
Speaker 3: About seventy five adult migrants are staying in the gym
Speaker 3: that is not connected to the school. Attorneys from marine
Speaker 3: veteran Daniel Penny are defending his decision to put Jordan
Speaker 3: Neely in a chokehold on a New York subway train
Speaker 3: earlier this month. Neely, who was homeless was later pronounced dead.
Speaker 3: Penny's defense says Neely had been threatening passengers, but prosecutors
Speaker 3: say there was no indication Neely was violent. Meanwhile, a
Speaker 3: legal defense fund for Penny has surpassed two million dollars
Speaker 3: with donations from kid Rock and endorsement from Florida Governor
Speaker 3: Ron Dessentis. Police in Farmington, New Mexico, say it appears
Speaker 3: an eighteen year old gunman who shot and killed three
Speaker 3: people and wounded six others, fired to add random as
Speaker 3: he roamed the neighborhood. Authorities say it appears the suspect
Speaker 3: fired at least three weapons, including an ar style rifle,
Speaker 3: shooting at homes and cars. Farmington, New Mexico, Police Chief
Speaker 3: Steve Hebby.
Speaker 4: It's difficult to understand how something like this happens, but
Speaker 4: we are doing the best that we can.
Speaker 3: He's through and talk with family members of the suspect.
Speaker 3: Chief Hebby says the gunman was shot and killed. Rudy
Speaker 3: Giuliani is denying sexual assault allegations and a new ten
Speaker 3: million dollar lawsuit. The former mayor of New York City
Speaker 3: is also accused of harassing a former employee, Noelle Dunfee
Speaker 3: claims she has audio recordings to back up her claims.
Speaker 3: Two staffers for Virginia Democratic Congressman Jerry Connolly were attacked
Speaker 3: by a man with a baseball bat in Connolly's district office.
Speaker 3: Sergeant Lisa Gardner of the Fairfax Police.
Speaker 6: We found two victims. They sustained non life threatening, non
Speaker 6: life threatening injuries, and they were both transported to local hospitals.
Speaker 3: Sergeant Gardner says the suspect is in custody. Global News
Speaker 3: twenty four hours a day, powered by more than twenty
Speaker 3: seven hundred journalist nanalysts and over one hundred and twenty countries.
Speaker 3: I'm Michael Barr. This is Bloomberg, Nathan.
Speaker 2: Thanks Michael. Time now for our Bloomberg Sports update, brought
Speaker 2: to you by Tri State Outy. Good morning, John stash.
Speaker 4: Hour, Good morning, Nathan. The Yankees went to Toronto the record
Speaker 4: of just three and nine in series openers, first of
Speaker 4: four with the Blue Jays second batter of the game.
Speaker 5: Two swing at a high drive.
Speaker 11: It's right field and pretty deep for Springer. He's gonna
Speaker 11: turn and watch it. It's gone a home run into the
Speaker 11: elevated Yankee bullpenning straightaway right Aaron Judge is gone yard
Speaker 11: here in the top of the first off, Alex manoah
Speaker 11: it is home run number nine and the Yankees are
Speaker 11: in front one on Wfan.
Speaker 4: Three batters later, a Willie Calhoun two run shot Judge
Speaker 4: it another solo shot eighth in, and that one went
Speaker 4: four hundred and sixty two feet to straightaway centers for
Speaker 4: four homers in the last three games for the American
Speaker 4: League's all time single season leader. The Yanks led seven
Speaker 4: nothing held on to win seven to four. Mets lost
Speaker 4: in Washington ten three. David Peterson's now one in six
Speaker 4: with an eight ERA, and the Mets have lost fifteen
Speaker 4: of their last twenty one, haven't won a series in
Speaker 4: a month, and this next series won't be easy, hosting
Speaker 4: Tampa Bay, who comes in with a record of thirty
Speaker 4: one and eleven. Justin Erlander on the mound tonight, his
Speaker 4: first city field start as the met NBA and NHL
Speaker 4: playoffs both down to the final four. The NBA's West
Speaker 4: Finals start tonight in Denver Nuggets and Lakers. Nuggets have
Speaker 4: never played in the NBA Finals. They are zero to
Speaker 4: four in this round, and three of those losses have
Speaker 4: been against La the East Finals start tomorrow in Boston.
Speaker 3: Celtics and Hey.
Speaker 4: Dallas Stars into the Stanley Cup West Final, beat Seattle
Speaker 4: in game seven two to one, will now take on Vegas.
Speaker 4: NFL broadcasting news Matt Ryan said he's not necessarily retiring
Speaker 4: after fifteen seasons, but he is joining the CBS as
Speaker 4: an analyst, and the NFL says one of the wild
Speaker 4: card playoff games will be aired on Peacock, NBC's streaming service,
Speaker 4: so it won't be on free TV. John Stashedward Bloomberg Sports.
Speaker 12: Live from coast to coast, from New York to San Francisco,
Speaker 12: Boston to Washington, DC, nationwide on SIRISXAM, the Bloomberg Business app,
Speaker 12: and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 2: Good morning. I'm Nathan Hager. There is no sign of
Speaker 2: rate cuts in the near term. That's the word from
Speaker 2: Atlanta FED President Rafael Bostik, speaking with Bloomberg's Michael mckeeb
Speaker 2: about monetary policy, inflation, and the recent banking crisis. Bostik
Speaker 2: says there's still ways to go to tame price pressures,
Speaker 2: and he hinted at what the Fed's next move might
Speaker 2: be at next month's FOMC meeting. Let's listen in to
Speaker 2: that conversation.
Speaker 13: Now, headline CPI and core CPI have come down from
Speaker 13: their peaks, but they seem to have kind of stalled out.
Speaker 13: The Atlanta Fed has an underlying inflation dashboard that shows
Speaker 13: a bunch of other measures of inflation, and a lot
Speaker 13: of those are worse now than they were a year ago.
Speaker 13: So has the Fed done enough?
Speaker 7: Well, First of all, thanks for being here. It's really
Speaker 7: good to have Bloomberg is an attendee at our conference.
Speaker 7: This is a really good group and your team really
Speaker 7: contributes a lot to that. And when I think about
Speaker 7: the trajectory of inflation, I think that we've made a
Speaker 7: really good progress on it. If you think about where
Speaker 7: the economy was and where inflation was last summer compared
Speaker 7: to where it is today, we've seen really positive things happen.
Speaker 7: We're not the nine and ten percent levels. We're in
Speaker 7: four and a half to five range. Now, look that's
Speaker 7: still twice two times what our target is, so there's
Speaker 7: still a ways to go. But I do think that
Speaker 7: we've seen a lot of some of the frost really
Speaker 7: come out of the inflation measure. Now, one of the
Speaker 7: things I look at one of the measures I try
Speaker 7: to keep track of is the number of goods in
Speaker 7: the basket of that's used to calculate the CPI that
Speaker 7: are showing inflation above five percent Right now, in the
Speaker 7: latest report, that came under fifty percent, less than half
Speaker 7: no hour in that range from one point it was
Speaker 7: seventy or eighty percent. So I think we're seeing that
Speaker 7: breath narrow and that's a really positive sign. So I
Speaker 7: think we are starting to see our policies really work.
Speaker 13: But do you rule out any more additional rate increases?
Speaker 3: No?
Speaker 7: Oh no. Look in today's environment, where there's so much
Speaker 7: uncertainty in the economy, I don't think we can really
Speaker 7: rule out anything. Look, I think we are in a
Speaker 7: place now where we've been in restrictive territory for something
Speaker 7: like six to eight months. That's about the time you'd
Speaker 7: expect to see our policies start to bind on the economy.
Speaker 7: And when I talk to businesses, they tell me they're
Speaker 7: starting to feel that bind, and that's a really positive thing.
Speaker 7: But as you know, we've had surprise after surprise after
Speaker 7: surprise over the last few years, and most of them
Speaker 7: have been to the negative. When it comes to getting
Speaker 7: closer to our inflation target. So I've got to keep
Speaker 7: that on the table for sure. But right now I'm
Speaker 7: feeling like, let's see how our restrictive policy is working
Speaker 7: and that'll give me a sense of what our next
Speaker 7: move needs to be.
Speaker 13: Well, you still have a PC inflation report and a CPI.
Speaker 7: We got two more exactly for your next meeting.
Speaker 13: What are you thinking now though for the June meeting?
Speaker 7: Well, if you if I had to have a vote
Speaker 7: right now, I'd probably vote to hold. But as you noted,
Speaker 7: we've got two more inflation readings. We have a job's number,
Speaker 7: a jobs report that's going to come out. There's a
Speaker 7: lot more information we're going to have as to what's
Speaker 7: going on. But again, the folks, I'm talking to the
Speaker 7: businesses across the sixth district and even in our survey responses,
Speaker 7: they're all telling us that there is a lot of
Speaker 7: slow down that is that is on the way, and
Speaker 7: that really gives me some comfort that we're kind of
Speaker 7: in a place where we can let that play out
Speaker 7: and then we'll see where what we need to do
Speaker 7: at that point.
Speaker 13: We are speaking with Rafael Bostics, the president of the
Speaker 13: Atlanta Federal Reserve. You're talking about what the businesses are
Speaker 13: telling you. What are they saying about their pricing power
Speaker 13: and their plans to use it or not be able to.
Speaker 7: So, you know what's really interesting. Through most of the pandemic,
Speaker 7: our business contacts have said, if we needed to raise
Speaker 7: prices because our costs are for input, we're going up,
Speaker 7: they could just pass that through, and the consumers were
Speaker 7: accepting that. I'm hearing much much less of that now,
Speaker 7: and many of the businesses and the people in the
Speaker 7: marketplace are telling me they're pretty much at the limit,
Speaker 7: and their ability to continue to raise price and pass
Speaker 7: through those higher costs is far degraded, in part because
Speaker 7: consumers have become a lot more price sensitive, which again
Speaker 7: is I think these are the things that we'd want
Speaker 7: to see if we were getting to a place where
Speaker 7: the economy was moving back to balance, which then would
Speaker 7: get us to that two percent target. So pricing power
Speaker 7: is not nearly as clear and as ruthless as it
Speaker 7: has been. I think that's really positive development.
Speaker 13: What about on the employment side, FED forecast at five
Speaker 13: basis points of tightening should be raising the unemployment rate.
Speaker 13: Instead it's gone down. What are they saying about their
Speaker 13: plans for labor.
Speaker 7: Well, I would say two things on this. So first,
Speaker 7: everyone is telling me that their labor market experiences, their
Speaker 7: ability to hire, and their turnover internal to their business
Speaker 7: is far better than it was last summer. Now it
Speaker 7: is not still elevated and tougher than it was before,
Speaker 7: but there has been progress made. The second piece to this, though,
Speaker 7: is that we just came through a pandemic where many
Speaker 7: families are thinking about how they're going to work. Many
Speaker 7: many employees are thinking what is my connection to the
Speaker 7: labor market. We had all these retirements, so there's a
Speaker 7: lot of churn that's happening. I think that's contributed to
Speaker 7: some of the historically low unemployment numbers that we've seen.
Speaker 13: If I could use a phrase you're not allowed to
Speaker 13: use in economics, is this time different in the sense
Speaker 13: that it was so hard for companies to hire coming
Speaker 13: out of the pandemic, that this time they're going to
Speaker 13: hoard labor and we may not see the kind of
Speaker 13: unemployment rates that you forecast.
Speaker 7: Well, I am hearing that businesses are saying, we don't
Speaker 7: want to let some of our best people go because
Speaker 7: it may be very difficult to get them back. I
Speaker 7: am definitely hearing that, but I'm mindful for how you
Speaker 7: started this. Every time there's a declaration that this time
Speaker 7: is totally different, it winds up not being totally different.
Speaker 7: So we're going to just keep our eyes open, my
Speaker 7: eyes open, and our team. We're going to be out
Speaker 7: there really trying to understand where things stand. I do
Speaker 7: think when the pandemic is triggering some real structural changes
Speaker 7: that it's going to take a while for us to
Speaker 7: understand those things. But we're going to have to understand
Speaker 7: those before I'll be willing to make any declaration that
Speaker 7: the old laws of labor markets don't apply.
Speaker 13: I want to follow up on that in a second,
Speaker 13: but first let me ask you about banks, because there's
Speaker 13: been a lot of talk about that. Thanks all, we
Speaker 13: titan credit standards. When the Fed is raising interest rates
Speaker 13: and loan demand always falls. So the real question is
Speaker 13: are you seeing anything or do you anticipate anything that
Speaker 13: would be worse than normal in terms of credit.
Speaker 7: That's a good question. So look, as you noted, when
Speaker 7: we raise interest rates at the Federal serve, we expect
Speaker 7: loan conditions of learning conditions to tighten. That has happened
Speaker 7: that I usually don't want it to happen as in
Speaker 7: such as volatile a way as it has with the
Speaker 7: Silicon Valley bank challenge and other things. But a lot
Speaker 7: of this is going as expected as I expected it would.
Speaker 7: Now the question is is it going to accelerate, is
Speaker 7: it going to stay where it is, or is it
Speaker 7: going to slow down. The bankers that I talked to
Speaker 7: tell me that the rise of liquidity risk as something
Speaker 7: that's really on their radar screen has caused them to
Speaker 7: want to be more conservative in terms of their willingness
Speaker 7: and desire to lend. But I'm not hearing right now
Speaker 7: that they've gone into hyper mode where we really have
Speaker 7: something that I would characterize as a credit crunch. We're
Speaker 7: not there today, and I'll be monitoring to see if
Speaker 7: we get closer to something like that.
Speaker 13: The fit is sketched out a sort of backward looking
Speaker 13: monetary policy framework, and that you're looking at inflation numbers
Speaker 13: for quote, a clear and convincing evidence that the price
Speaker 13: level is coming down? Is it time to switch to
Speaker 13: you more forward looking kind of policy to find indicators
Speaker 13: that tell you what's going to happen rather than what
Speaker 13: has well I would.
Speaker 7: Say we've always done both right, So we definitely want
Speaker 7: to see what the official numbers are saying. But through
Speaker 7: our Regional Economic Information Network, we are talking to businesses
Speaker 7: all the time through our surveys. We have a pretty
Speaker 7: robust survey shop, and we're talking to businesses and we
Speaker 7: get feedback from businesses in those cases, and some of
Speaker 7: the questions we ask are, as you're setting wages moving forward,
Speaker 7: are you doing that as a catchup because your workers
Speaker 7: feel like they're falling behind, or are you doing that
Speaker 7: because you think that pricing is going to be where
Speaker 7: you need to do that Today, what businesses are telling
Speaker 7: us is that they're in catchup mode. Their employees know
Speaker 7: that they've been their wages have fallen behind inflation, and
Speaker 7: to keep them they feel like they've got to allow
Speaker 7: that catchup to happen. But we are also and that
Speaker 7: to me, that's a very positive thing because it says
Speaker 7: it's reactive and not proactive, and as long as we
Speaker 7: stay in that environment, I think the probability that we
Speaker 7: get inflation to continue to recede is very positive.
Speaker 13: Now, you've said, and most of your colleagues have said,
Speaker 13: that you anticipate keeping rates where they are at least
Speaker 13: through the end of this year, possibly into next year.
Speaker 13: Is there any circumstance under which you think you would
Speaker 13: change that view if inflation came down quickly or if
Speaker 13: the economy sort of fell apart.
Speaker 7: Well, of those two scenarios, I would be more inclined
Speaker 7: to change if inflation came down quickly. Look, inflation is high,
Speaker 7: is too high. We've got to get this back to
Speaker 7: our two percent target. If we do not do that,
Speaker 7: inflation expectations change and you might get into this cycle
Speaker 7: where it becomes very, very difficult to get back down
Speaker 7: to a reasonable level, and that has all kinds of
Speaker 7: bad implications for families, for investment, for businesses, and for
Speaker 7: the country. So we've got to get that under control.
Speaker 7: The scenario for me of a rate cut, which I
Speaker 7: don't think is what's going to happen, is that inflation
Speaker 7: really starts to come down robustly through the course of
Speaker 7: this year. You know, my models and my team and
Speaker 7: my outlook really tell me that we're I'm expecting to
Speaker 7: be in the high the mid to high threes by
Speaker 7: the end of this year, and that's still quite a
Speaker 7: ways from two percent. If I was wrong and inflation
Speaker 7: was much lower than that, then there would be a
Speaker 7: conversation on it. But I think right now, if you
Speaker 7: had to tip the skills, the next move is going
Speaker 7: to be an increase or a cut. It's pretty heavily
Speaker 7: weighted to the end for me at the current moment.
Speaker 13: I have a leftfield question for you because this just
Speaker 13: came up in the last twenty four to forty eight hours,
Speaker 13: the State of Florida banning the use of a central
Speaker 13: bank digital currency as the monetary overseer for the state
Speaker 13: of Florida from your Atlanta office. Does that make any
Speaker 13: sense to you?
Speaker 7: I have not been in any conversation, so Noah's motivated that.
Speaker 7: You know, we at the federals A have done some
Speaker 7: study of this. We had a white paper, lots of questions.
Speaker 7: It's something we're mouling. I don't think something like that
Speaker 7: is imminent, but I don't know. Maybe they know something
Speaker 7: I don't, But yeah, I'm not really having a lot
Speaker 7: of conversation on that.
Speaker 2: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 2: stories making news from Wall Street to Washington and beyond.
Speaker 1: Look for us on your podcast feed at six am
Speaker 1: Eastern each morning on Apple, Spotify, and anywhere else you
Speaker 1: get your podcasts.
Speaker 2: You can also listen live each morning starting at five
Speaker 2: am Wall Street Time on Bloomberg eleven three in New York,
Speaker 2: Bloomberg ninety nine one in Washington, Bloomberg one oh six
Speaker 2: y one in Boston, and Bloomberg ninety sixty in San Francisco.
Speaker 1: Our flagship New York station is also available on your
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2: Plus listen coast to coast on the Bloomberg Business app,
Speaker 2: serious XM Channel one nineteen, the iHeartRadio app, and on
Speaker 2: Bloomberg dot com. I'm Nathan Hager and.
Speaker 1: I'm Karen Moscow. Join us again tomorrow morning for all
Speaker 1: the news you need to start your day right here
Speaker 1: on Bloomberg Daybreak