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Speaker 1: Broadcasting live to New York Bloomberg eleven Brio to Washington,

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Speaker 1: d C. Bloomberg to Boston Bloomberg twelve hundreds, to San

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Speaker 1: Francisco Bloomberg nine to the Country's Julie's Exam Channel one

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Speaker 1: ninet and around the globe the Bloomberg Radio plus Appen

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Speaker 1: Bloomberg got gone. This is taking stock, you know, Kathleen.

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Speaker 1: Everyone wants to know when the Federal Reserve will raise

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Speaker 1: interest rates. And there's a new chorus of questions and

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Speaker 1: it's coming from overseas. The Chinese want to know too.

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Speaker 1: This is something new him. But I wonder, I wonder

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Speaker 1: someday they're gonna just the the feble does plug in

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Speaker 1: a computer and get the answer that way, and the

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Speaker 1: Chinese can find out a well, maybe the robot. Yellen,

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Speaker 1: We're going to talk about computers, the Federal Reserve and

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Speaker 1: the Chinese. It's all coming up with Christopher Condent, Federal

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Speaker 1: Reserve reporter from Bloomberg News. But right now, let's go

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Speaker 1: to Charlie Pellet in the Bloomberg news room for Bloomberg

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Speaker 1: Business Fun And I thank you very much, Pim, thank you, Kathleen.

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Speaker 1: Happy Wednesday. The dal the SMP nez DAK halls surging today.

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Speaker 1: Stocks are on the way to the strongest today rally

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Speaker 1: and nearly three months. The signs of a stronger economy

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Speaker 1: spurs speculation that can withstand higher interest rates. Oil trading

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Speaker 1: close to fifty dollars of barrel for sixty six right now,

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Speaker 1: up two point one percent. On West Texas Intermediate Brent

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Speaker 1: crude four it is up by two and a half percent.

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Speaker 1: Gold dropping to US seven week low, is equities rally

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Speaker 1: amid signs the US economy is resilient enough to withstand

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Speaker 1: an increase in borrowing costs. Bill Baruk is senior market

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Speaker 1: strategist at II trader dot com. He was interviewed this

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Speaker 1: morning on Bloomberg Television. We've been telling our clients is

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Speaker 1: it's not as much about the Fed as it is

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Speaker 1: about yields. We do not see yields and treasuries going

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Speaker 1: higher for longer. So right now you're seeing you're you're

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Speaker 1: seeing gold take a move and take a bath because

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Speaker 1: of the FED pricing and an interest ry hike. However,

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Speaker 1: we do think gold has been extremely constructive all year long,

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Speaker 1: and I don't think that will change, especially if we

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Speaker 1: hold twelve hundred on this move down, on this move

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Speaker 1: that we've seen down, and right now gold is a

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Speaker 1: twelve twenty four seventy down four or fifty the ounce,

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Speaker 1: falling four tenths of one percent. The US home prices

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Speaker 1: up five point seven percent in the first quarter from

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Speaker 1: a year earlier as buyers competed for a limited supply

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Speaker 1: of listings. That's according to the Federal Housing Finance Agency.

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Speaker 1: The now up one seventies seven, a gain of one percent,

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Speaker 1: SMP five hundred, index of eighteen a gain of nine

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Speaker 1: tenths of one percent, and as stack up thirty eight

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Speaker 1: a gain of eight tenths of one percent three thirty

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Speaker 1: two on Wall Street. Now, let's take a look at

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Speaker 1: other news from around the world. On Bloomberg Radio. Thank you,

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Speaker 1: Charlie from the Bloomberg Newsroom. I'm Scarlet Food. This news

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Speaker 1: update is brought to you by the Jeep Grand Cherokee,

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Speaker 1: The head of the Transportation Security Administration says the agency

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Speaker 1: will add seven hundred sixty eight news screeners by mid

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Speaker 1: June to deal with increasingly long airport security lines. Homeland

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Speaker 1: Security Chairman Mike McCall suggested that t s A should

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Speaker 1: make more employees full time. Think your employees are pert time.

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Speaker 1: In my judgment, they're already trained to do the job,

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Speaker 1: and it seems to me that would cause overnight, would

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Speaker 1: would ramp up your personnel force to deal with the

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Speaker 1: long Roughly two two million passengers are expected to pass

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Speaker 1: through airport checkpoints during the peak summer travel season. The

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Speaker 1: Romanian hacker known as Gauchafer, who access the computer accounts

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Speaker 1: of the Bush family and others, has pleaded guilty to

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Speaker 1: identity theft in federal court. Marcel Lazar is best known

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Speaker 1: for hacks that revealed private Bush family photos and paintings

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Speaker 1: connected to former Presidents George H. W. Bush and George W. Bush.

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Speaker 1: Officials with the City of Cleveland and security personnel unveiling

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Speaker 1: new details today about how prepared the city is for

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Speaker 1: the upcoming Republican invention. Here's Cleveland Police Chief Callen Williams.

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Speaker 1: A lot has been said about whether or not Cleveland

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Speaker 1: is prepared for the rnc UH in about fifty days here.

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Speaker 1: I have to tell you we are prepared. The GOP

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Speaker 1: Convention will take place in Cleveland in July and Fleet

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Speaker 1: Week Cruis is back into the city. About forty five

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Speaker 1: hundred Navy Marines and Coast Guard personnel are participating this year.

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Speaker 1: Global News twenty four hours a day, powered by our

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Speaker 1: journalists more than one d fifty news bureaus around the world.

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Speaker 1: From the Bloomberg Newsroom, I'm Scarlet Food, Charlie, and we

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Speaker 1: thank you, and we are brought to you by Sector

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Speaker 1: Spider e t FS. Why by a single stock when

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Speaker 1: spd rs dot com or call one sector e t

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Speaker 1: F SMP five hundred index up nine tenths of one percent.

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Speaker 1: I'm Charlie Palett. That's a Bloomberg business flash. You're listening

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Speaker 1: to taking stock with Bim Box and Kathleen Hayes on

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Speaker 1: Bloomberg Radio. Are you wondering when the Federal Reserve is

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Speaker 1: going to raise its key rate again this year? June July,

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Speaker 1: said Timber, like so many investors and traders, Well, you

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Speaker 1: know what, there's another group joining this camp, and that

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Speaker 1: is Chinese officials According to our Bloomberg News story today,

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Speaker 1: they plan to ask the FED to reserve in annual

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Speaker 1: talks next month about the chance of a FED rate

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Speaker 1: hike in June. Now, of course, the FED is probably

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Speaker 1: going to say, well, we don't know exactly what we're

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Speaker 1: going to do, but it's a fascinating story, and here

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Speaker 1: to talk about that, and maybe even tell us if

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Speaker 1: in the future the FED will just plug the question

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Speaker 1: into its computer and spit out an answer to get

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Speaker 1: to the Chinese. Is Chris Condon, Federal Reserve reporter for

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Speaker 1: Bloomberg News, joining us from our Washington d c C

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Speaker 1: studio that is home, of course of Bloomberg and one.

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Speaker 1: So Chris, let's start with the Chinese. Uh. And we

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Speaker 1: think in the past officials would have said, quietly behind

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Speaker 1: the scenes, what are you gonna do? How did the

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Speaker 1: story get public? Well? Um, Uh, some of our reporting

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Speaker 1: shows that they're they're as interested as everyone else is

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Speaker 1: in asking the FAT there's a meeting coming up, quite

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Speaker 1: a prominent meeting between American and Chinese officials, uh, to

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Speaker 1: discuss economic relations and in other things. And uh, it's

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Speaker 1: it's simply been revealed that they are as interested as

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Speaker 1: everyone else. Well, are they asking because they want some

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Speaker 1: advanced notice or they just want to get the same

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Speaker 1: word that everybody else gets. Well, I really think they

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Speaker 1: were just in the same boat as everyone else. I'm

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Speaker 1: not sure realistically how much they can expect to get

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Speaker 1: from US officials. As you noted, Kathleen, it may be

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Speaker 1: just as likely that the FIT is not um decided

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Speaker 1: at all yet what it's going to do at its

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Speaker 1: June meeting. And of course Janet Yellen speaks this week

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Speaker 1: and next week, a very big speech, and I guess

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Speaker 1: you could learn as much from her speaking as as

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Speaker 1: as anything that's right. She's got two dates coming up,

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Speaker 1: one next week in Boston, then a speech schedule for

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Speaker 1: June six, and that, notably is the last day before

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Speaker 1: the Fed enters what they call their blackout period period

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Speaker 1: of seven days before their policy meeting where they do

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Speaker 1: not do any public speaking. So that would be her

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Speaker 1: last chance to give any signals to the markets or

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Speaker 1: to anyone else about what she thinks, what direction she

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Speaker 1: thinks she's going. Now, the other meeting you're talking about,

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Speaker 1: that's the US China Strategic Economic Dialogue, right, Those are

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Speaker 1: scheduled for economic dialogue that's right, right, the sixth and

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Speaker 1: the seventh in Beijing. Well, if you don't want to

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Speaker 1: go to Beijing, and you'd rather just press a computer

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Speaker 1: button to find out when to raise or what to

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Speaker 1: raise interest rates, to tell us about robo well, let's

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Speaker 1: just say robo advising for the Federal Reserve. What is

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Speaker 1: this about the Laboratory for Financial Engineering at the m

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Speaker 1: i T. Well, that that's where where that's the home

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Speaker 1: of Dr Andrew low He's the director of that department

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Speaker 1: m i T. He's one of the scientists that I

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Speaker 1: spoke to for this story that examines um when and

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Speaker 1: whether computers that use artificial intelligence might get to the

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Speaker 1: point where they can do a better job than humans

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Speaker 1: at economic forecasting and even monetary policy setting. Well, of course,

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Speaker 1: and Andrew Lowe told you that the capability to do

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Speaker 1: this is is here. And the biggest roller is hurdle,

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Speaker 1: I should say, is cultural because central bankers, he says,

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Speaker 1: aren't open to technology. But a lot of central bankers

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Speaker 1: are economists there, and they a lot of them do

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Speaker 1: a lot of modeling. They're just skeptical that a machine

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Speaker 1: could possibly put all that complexity into something and come

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Speaker 1: up with an answer that the FED would just follow right. Well, this,

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Speaker 1: it's important to make a distinction between the use of

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Speaker 1: technology in computer economic modeling. That's most federal and most

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Speaker 1: central banks do that to a great extent, but models

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Speaker 1: as it is don't really do well. They don't apply

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Speaker 1: what's called machine learning. That is, the the type of

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Speaker 1: technology that allows a computer to solve problems by itself,

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Speaker 1: to actually acquire knowledge and skills without being explicitly programmed

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Speaker 1: to do that by a software engineer, Chris, Is there

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Speaker 1: an example, I mean, I note in your story that

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Speaker 1: you talk about the relationship between unemployment and inflation. Is

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Speaker 1: there an example where this kind of artificial intelligence would

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Speaker 1: be beneficial not just in setting interest rate policy. Well,

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Speaker 1: and first of all, it will be beneficial to macroeconomists

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Speaker 1: in making the your fundamental economic forecasts as relate to

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Speaker 1: unemployment inflation GDP, and that's really the foundation of monetary

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Speaker 1: policy making. And and even more basic than that, there

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Speaker 1: are economists that work for computer scientists that work for

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Speaker 1: investing companies UH and for other companies like Amazon, um,

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Speaker 1: Netflix and many other web based companies that at utilize

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Speaker 1: machine learning already to make predictions and more. I would say,

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Speaker 1: more confined spaces. So the universe of their customers, for instance,

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Speaker 1: is a sort of a more manageable universe of data

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Speaker 1: to make predictions upon, and they're using that quite effectively

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Speaker 1: now Already. Macro economics, though, introduces a lot more complexity

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Speaker 1: to the issue. Just really quickly. What did Mike Caroli

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Speaker 1: say from JPN about this, Well, he he spoke to

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Speaker 1: the point of, even if we do have computers that

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Speaker 1: can set monetary policy, there's another question about accountability, and

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Speaker 1: he asks whether they can actually say testified before Congress.

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Speaker 1: Thank you very much. Chris Condon, Federal Reserve reporter for

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Speaker 1: Bloomberg News, joining us from our Bloomberg studio in Washington,

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Speaker 1: d C. We are broadcasting live from the Bloomberg Breakaway Summit.

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Speaker 1: You're listening to Bloomberg Radio, in which parts of Europe's

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Speaker 1: economy are picking enough up enough to entice investors. Could

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Speaker 1: Japan be headed for another recession? Up next Jeff Klintop

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Speaker 1: from Charles Schwab on Global Markets. This is Bloomberg Radio.