WEBVTT - Single Best Idea with Tom Keene: David Rosenberg & Michael McKee

0:00:02.520 --> 0:00:14.080
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Single best idea here

0:00:14.120 --> 0:00:17.079
<v Speaker 1>before an important speech by Jerome Powell that will be

0:00:17.079 --> 0:00:21.600
<v Speaker 1>at the Kansas City Fed meetings in Jackson Hall. I'll

0:00:21.640 --> 0:00:25.599
<v Speaker 1>be there with Lisa Bramwitz, Joe Wisenthal, Tracy Alloway, all

0:00:25.640 --> 0:00:28.440
<v Speaker 1>of the wonderful coverage of Michael McKee. We'll get to

0:00:28.480 --> 0:00:31.360
<v Speaker 1>Mike McKee here in a moment. We got a briefing

0:00:31.360 --> 0:00:35.720
<v Speaker 1>from David Rosenberg from Toronto. Rosenberg still looking for some

0:00:35.840 --> 0:00:39.600
<v Speaker 1>form of disinflationary vector, and all of it wrapped around

0:00:39.600 --> 0:00:42.200
<v Speaker 1>an American economy on stall speed.

0:00:42.880 --> 0:00:46.400
<v Speaker 2>Well, you know, everybody is, I guess, redefined what reasonable

0:00:46.560 --> 0:00:49.880
<v Speaker 2>is or what J. Powell describes as solid when we're

0:00:49.880 --> 0:00:54.760
<v Speaker 2>barely running the economy so far this year, barely over

0:00:54.800 --> 0:00:57.240
<v Speaker 2>a one percent annual rate. I mean, when I started

0:00:57.360 --> 0:00:59.800
<v Speaker 2>the business in the mid eighties, you got down to

0:00:59.840 --> 0:01:02.400
<v Speaker 2>a one handle on real GDP growth, and people were

0:01:02.440 --> 0:01:05.320
<v Speaker 2>talking about reasonable, people were talking about stall speed and

0:01:05.360 --> 0:01:09.280
<v Speaker 2>then asking when's the recession going to start? So the economy,

0:01:09.800 --> 0:01:14.720
<v Speaker 2>I think, is sputtering. It's uneven, you know, without the

0:01:14.760 --> 0:01:19.120
<v Speaker 2>proliferation of AI data centers and all the technology spending

0:01:19.160 --> 0:01:23.640
<v Speaker 2>related to general AI the economy would actually be in

0:01:23.680 --> 0:01:27.240
<v Speaker 2>recession right now. That's been really the only underpinning, the

0:01:27.280 --> 0:01:29.319
<v Speaker 2>only impetus to growth so far this year.

0:01:29.959 --> 0:01:33.160
<v Speaker 1>David Rosenberg a good backdrop there on his call for

0:01:33.319 --> 0:01:37.959
<v Speaker 1>a slower economy and a less resilient inflation. That'll be

0:01:38.000 --> 0:01:41.480
<v Speaker 1>one of the themes that Jackson hole. It'll be an interesting day,

0:01:41.520 --> 0:01:44.600
<v Speaker 1>and of course it's scripted. The guests are planned, and

0:01:44.640 --> 0:01:47.240
<v Speaker 1>then there's the un planned. Today the President of the

0:01:47.319 --> 0:01:50.600
<v Speaker 1>United States goes after a governor of the FED saying

0:01:50.640 --> 0:01:54.120
<v Speaker 1>that Lisa Cook of Michigan State and Berkeley, Lisa Cook

0:01:54.560 --> 0:01:58.280
<v Speaker 1>should resign. We got perspective from our Michael McKee.

0:01:58.600 --> 0:02:00.520
<v Speaker 3>Well, you have to figure that in this case, what

0:02:00.560 --> 0:02:03.280
<v Speaker 3>he's looking for is to get a resignation so he

0:02:03.320 --> 0:02:06.400
<v Speaker 3>would have another seat to fill. Cook by herself isn't

0:02:06.440 --> 0:02:08.680
<v Speaker 3>going to make any difference in terms of whether the

0:02:08.720 --> 0:02:11.680
<v Speaker 3>Fed lower's interest rates. But this seems to be part

0:02:11.760 --> 0:02:15.399
<v Speaker 3>of the ongoing Trump revenge tour here where he has

0:02:15.480 --> 0:02:18.880
<v Speaker 3>asked people to go after certain folks and try to

0:02:18.880 --> 0:02:20.920
<v Speaker 3>get them in legal trouble. Bill Polti, the head of

0:02:20.960 --> 0:02:24.600
<v Speaker 3>the Federal Housing Finance Administration, said a letter to Attorney

0:02:24.600 --> 0:02:28.960
<v Speaker 3>General Pam Bondi yesterday asking her to investigate Cook for

0:02:29.080 --> 0:02:34.760
<v Speaker 3>possibly taking out two mortgages that contain fraudulent statements. We

0:02:34.880 --> 0:02:38.160
<v Speaker 3>don't know for sure if there is anything wrong or

0:02:38.200 --> 0:02:41.880
<v Speaker 3>any charges could be filed, but the President today posting

0:02:41.880 --> 0:02:46.040
<v Speaker 3>Bloomberg's story on Truth's social and saying that Lisa Cook

0:02:46.120 --> 0:02:47.400
<v Speaker 3>must resign immediately.

0:02:47.840 --> 0:02:51.079
<v Speaker 1>Always, in every case there is a plan to Jackson

0:02:51.120 --> 0:02:55.960
<v Speaker 1>Hole that becomes unplanned. I want to draw your attention

0:02:56.040 --> 0:03:02.200
<v Speaker 1>to Jennerendo's wonderful European based essay here on Laguarde in Bailey,

0:03:02.320 --> 0:03:07.000
<v Speaker 1>flying into Wyoming to support Chairman Powell. We'll be there

0:03:07.080 --> 0:03:10.120
<v Speaker 1>on Friday, and of course still huge news flow in

0:03:10.200 --> 0:03:13.280
<v Speaker 1>this August week. On a podcast, It's on Apple and

0:03:13.400 --> 0:03:19.680
<v Speaker 1>Spotify and on YouTube podcasts. It's single best idea