WEBVTT - Single Best Idea with Tom Keene: Jeffrey Cleveland & David Malpass

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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<v Speaker 2>A single best idea it is a podcast. What an

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<v Speaker 2>interesting set of days. It's just been not so much exhausting,

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<v Speaker 2>it's just for all of us. It's just been back

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<v Speaker 2>and forth on the narratives and the themes of the moment.

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<v Speaker 2>But to see it come to fruition with the Nvidia

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<v Speaker 2>earnings and Jobs Day and the anticipation of further economic

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<v Speaker 2>data out to December tenth, it was really really quite something.

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<v Speaker 2>A great set of the guest Jeffrey Cleveland was with

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<v Speaker 2>us after the jobs report with Peyton and Regal. Here

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<v Speaker 2>is Jeffrey Cleveland his optimism on the American economy.

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<v Speaker 3>What does history tell us about the FED? Usually they're reactive,

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<v Speaker 3>not proactive, right, So there is a you know, an

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<v Speaker 3>inertia factor, if you will, or a lag between when

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<v Speaker 3>we think we see something in the data and policy

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<v Speaker 3>makers take action. We definitely saw that twenty one and

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<v Speaker 3>twenty two. I think the FED was behind the curve there,

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<v Speaker 3>so it wouldn't surprise me if they were a little sluggish.

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<v Speaker 3>They're also different opinions.

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<v Speaker 2>There are different opinions. That's the heart and soul of

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<v Speaker 2>the program. I can't say enough today. How we had

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<v Speaker 2>a given note come in that said they're going to cut,

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<v Speaker 2>another note come in and say, we don't know yet,

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<v Speaker 2>but maybe we need more information. And a third note

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<v Speaker 2>come in and say, in no way, shape or form

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<v Speaker 2>are they going to cut? Trust me, that's the income

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<v Speaker 2>over the transom. That's the kind of opinion that's coming

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<v Speaker 2>in here on the FED. David Malpass was former president

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<v Speaker 2>of the World Bank and all sorts of good work,

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<v Speaker 2>including at bear Stearns. Years ago we talked to David

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<v Speaker 2>Malpass about the brute force of inequality in America.

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<v Speaker 4>I think they call it inequality or that underperformance by

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<v Speaker 4>the bottom is massive, whether from a data standpoint it's

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<v Speaker 4>the worst. But what we need is job growth at

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<v Speaker 4>the bottom and median income growth. That is the whole

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<v Speaker 4>concept of a good economic policy. I did that around

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<v Speaker 4>the world that the way we evaluate whether an economic

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<v Speaker 4>program is going forward is the median income, the income

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<v Speaker 4>of people in the middle after inflation going up. And

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<v Speaker 4>so what we need or what I think lots of

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<v Speaker 4>policy changes can help with affordability right now.

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<v Speaker 2>Well said, whatever your political opinions are or economic opinions,

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<v Speaker 2>the median income not the average income. There's a distinction there.

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<v Speaker 2>I'm not going to go into it right now, but

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<v Speaker 2>look it up. Average median and mode mode are things

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<v Speaker 2>to sort of understand about how you aggregate in all

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<v Speaker 2>sorts of data. Another fancy term, and actually some fancy

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<v Speaker 2>mathematics is the Genie coefficient gi ni, the genie coefficient

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<v Speaker 2>which shows the prosperity of a society. David Malpest there

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<v Speaker 2>formerly with the World Bank. It's a podcast out an

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<v Speaker 2>Apple Out on Spotify and YouTube podcasts. Single best Idea