WEBVTT - Bloomberg Daybreak: December 14, 2022 - Hour 2 (Radio) 0:00:01.320 --> 0:00:04.600 Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 0:00:04.680 --> 0:00:08.119 day Break for Wednesday, December fourteen, twenty two. Coming up 0:00:08.160 --> 0:00:11.080 this hour, the FED makes its final policy decision of 0:00:11.080 --> 0:00:13.920 the year, with a fifty basis point hike expected UK 0:00:14.040 --> 0:00:16.360 inflation dips from out forty one year high you head 0:00:16.360 --> 0:00:18.840 of tomorrow's Bank of England decision. F t X co 0:00:19.000 --> 0:00:22.560 founder Sam Bankman Freed plans to fight extradition to the US, 0:00:22.680 --> 0:00:25.240 and the US plans to add more than thirty Chinese 0:00:25.280 --> 0:00:28.360 companies to its trade blacklist Hi maybe more as a 0:00:28.400 --> 0:00:31.080 three alarm fire at a police evidence warehouse may burn 0:00:31.160 --> 0:00:34.639 for days. Flags or half staff. Remembering Sandy Hook ten 0:00:34.720 --> 0:00:37.880 years ago, I'm John stashtown Swards, another big baseball free 0:00:37.920 --> 0:00:40.840 agent signing. The Islanders and Devil's both lost the World 0:00:40.880 --> 0:00:46.520 Cup semifinals in today. That's alls Training ahead on Bloomberg 0:00:46.560 --> 0:00:50.120 day Break on Bloomberg eleven three on New York, Bloomberg 0:00:50.200 --> 0:00:54.240 N one, Washington, d C, Bloomberg one O six one, Boston, 0:00:54.520 --> 0:00:58.960 Bloomberg nine sixties and Francisco Sirius XM one nine team 0:00:59.160 --> 0:01:01.960 and around the world Old on Bloomberg Radio dot Com 0:01:02.040 --> 0:01:08.560 and via the Bloomberg Business app. Good morning, I'm Nathan 0:01:08.600 --> 0:01:12.080 Hagar and I'm Karen Moscow, US not Index futures are 0:01:12.080 --> 0:01:14.759 a little change this morning six o one on Wall Street, 0:01:14.760 --> 0:01:16.600 and we check the markets all day long year on 0:01:16.640 --> 0:01:19.360 Bloomberg Radio. S and P futures that will change. So 0:01:19.480 --> 0:01:22.400 are down futures now. Zack Future is moving lower now 0:01:22.480 --> 0:01:24.960 down about a tenth of upper cent or seventeen points. 0:01:25.160 --> 0:01:27.639 The decks in Germany is down three quarters of a percent. 0:01:27.680 --> 0:01:30.280 The ten year treasury up one thirty second deal three 0:01:30.319 --> 0:01:32.040 point four and nine percent, and they yield on the 0:01:32.080 --> 0:01:35.080 two year four point one eight percent, Nathan Karen. A 0:01:35.160 --> 0:01:38.200 big week for critical economic events continues today with the 0:01:38.200 --> 0:01:41.520 Federal Reserve's final policy decision of the year. Let's get 0:01:41.520 --> 0:01:44.880 our coverage started with a preview from Bloomberg Economics correspondent 0:01:44.959 --> 0:01:47.920 Michael McKee. Fed officials are going to raise the nation's 0:01:47.920 --> 0:01:50.639 bench park lending rate by half a percentage point today. 0:01:50.960 --> 0:01:54.040 The question is what will they do next? After two 0:01:54.040 --> 0:01:58.000 consecutive soft CPI reports, investors are lowering their bets on 0:01:58.040 --> 0:02:01.080 how high the Fed goes and for how long. That 0:02:01.120 --> 0:02:05.000 puts the focus on policymakers. New economic and interest rate forecasts, 0:02:05.320 --> 0:02:08.080 and the so called dot plot that shows where they 0:02:08.120 --> 0:02:10.120 think rates will need to be at the end of 0:02:10.160 --> 0:02:13.320 next year. In September, the media dot was at four 0:02:13.360 --> 0:02:16.800 point six markets now see them at four point three 0:02:16.840 --> 0:02:21.040 percent after rate cuts beginning in July. Investors will also 0:02:21.040 --> 0:02:23.600 focus on how Chair j. Pal sees the data and 0:02:23.680 --> 0:02:28.040 the outlook. Will he again warn against overconfidence on Wall Street? 0:02:28.200 --> 0:02:31.280 Michael McKee Bloomberg Daybreak. All right, Mike, thank you well 0:02:31.320 --> 0:02:34.000 after today. The feds next steps depend on the path 0:02:34.040 --> 0:02:38.120 of economic data, so says influential economist and Stanford University 0:02:38.160 --> 0:02:42.120 professor John Taylor. If it's fifty basis points uh at 0:02:42.160 --> 0:02:45.320 this decision, then don't lead on a twenty five or 0:02:45.680 --> 0:02:49.160 seventy five or another fifty. It depends, you know, the 0:02:49.200 --> 0:02:52.440 idea of Monterrey policies. It depends on what's happening to inflation. 0:02:52.760 --> 0:02:55.119 What's happened to real h o'connory. We hope we don't 0:02:55.120 --> 0:02:59.079 have another downturn and and we can avoid that if 0:02:59.120 --> 0:03:02.720 in fact, that says, look, if inflation picks up, we 0:03:02.760 --> 0:03:06.240 will take action. Stanford professor John Taylor made the comments 0:03:06.240 --> 0:03:08.880 in an interview with Bloomberg's Kathleen Hey. Stay tuned for 0:03:08.919 --> 0:03:11.760 complete coverage of today's fan decision on a special edition 0:03:11.800 --> 0:03:14.519 of Bloomberg Surveillance. It all begins at one thir pm 0:03:14.520 --> 0:03:17.600 All Street time on Bloomberg Radio and Television, Karen. The 0:03:17.600 --> 0:03:20.400 FED decision comes after a key gauge of consumer prices 0:03:20.400 --> 0:03:22.520 posted its smallest gain in more than a year, and 0:03:22.520 --> 0:03:25.840 that fueled the surgeon stocks. At yesterday's opening bell, the 0:03:25.960 --> 0:03:28.560 SMP five hundred rows as much as two point eight 0:03:28.600 --> 0:03:31.680 percent before pairing those gains to close higher by three 0:03:31.800 --> 0:03:34.760 quarters of a percent. Garge Chowdry is Black Rock's head 0:03:34.800 --> 0:03:38.640 of Ice Shares investment strategy. Policy is working everything that 0:03:38.680 --> 0:03:41.320 the FED has been doing, as difficult as that has 0:03:41.360 --> 0:03:44.320 been for the markets. What the inflation data today shows 0:03:44.400 --> 0:03:46.520 us that it is it is going in the right 0:03:46.560 --> 0:03:50.280 direction black Rocks. Garg Choudry notes, overall CPI increased one 0:03:50.680 --> 0:03:53.120 percent from the prior month, bringing inflation to an annual 0:03:53.200 --> 0:03:56.160 rate of seven point one percent. Well, inflation is also 0:03:56.200 --> 0:03:58.880 a front end center in the UK, Nathan, with fresh 0:03:59.000 --> 0:04:01.320 data out of tomorrow us a Bank of England decision 0:04:01.360 --> 0:04:03.000 and we go to London and get the latest or 0:04:03.040 --> 0:04:06.520 the Bloomberg's Human Parts. Good morning Huan, Good morning Karen Nathan. 0:04:06.600 --> 0:04:09.520 Another of the world's biggest economies is seeing a softening 0:04:09.600 --> 0:04:12.680 of inflation. Consumer prices in the UK rose ten point 0:04:12.800 --> 0:04:15.800 seven percent in November from a year earlier. That was 0:04:15.840 --> 0:04:18.480 down from eleven point one percent in the previous month 0:04:18.600 --> 0:04:21.480 and lower than forecasts. The data will be studied by 0:04:21.480 --> 0:04:23.919 the Bank of England ahead of their rate decision tomorrow, 0:04:24.120 --> 0:04:27.440 but with inflation more than five times over targets, no 0:04:27.560 --> 0:04:30.880 one is yet calling victory in this particular battle in London. 0:04:30.920 --> 0:04:33.240 I'm you and parts in Big Daybreak, are you in Thanks. 0:04:33.320 --> 0:04:36.120 Let's turn now to the latest developments on Sam Bankman free. 0:04:36.240 --> 0:04:39.320 The FTX co founder apparently plans to fight extradition to 0:04:39.400 --> 0:04:42.680 the US and Bloomberg Steve Rappaport is live with the details. 0:04:42.720 --> 0:04:45.440 Good morning Steve, Good morning Nathan and Karen. Bringing Sam 0:04:45.480 --> 0:04:48.320 Bankman freed home from the Caribbean might require help from 0:04:48.360 --> 0:04:51.440 across the pond. The Bahamas is a British Commonwealth country 0:04:51.480 --> 0:04:55.000 and final appeals on extradition are handled by London's Privy Council, 0:04:55.200 --> 0:04:57.800 a formal body of advisors to the Sovereign of the UK. 0:04:58.120 --> 0:05:01.280 While announcing the charges, Federal Process cuter Damian Williams had 0:05:01.279 --> 0:05:03.640 a warning for anyone who may have helped Bankman Freed. 0:05:03.920 --> 0:05:07.000 I would strongly encourage you to come see us before 0:05:07.040 --> 0:05:09.279 we come see you. And if history is an indicator, 0:05:09.320 --> 0:05:11.960 Bankmn Freed may have bought plenty of time. Eight men 0:05:12.000 --> 0:05:14.760 facing drug charges in the US fought extradition from the 0:05:14.760 --> 0:05:17.599 Bahamas for more than a decade. Live in New York, 0:05:17.600 --> 0:05:20.640 I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks well. 0:05:20.640 --> 0:05:23.000 Another run of hearings on the ft X collapse is 0:05:23.000 --> 0:05:25.200 coming up today in the Senate. New f t X 0:05:25.240 --> 0:05:29.440 CEO John Ray testified yesterday before the House Financial Services Committee. 0:05:29.560 --> 0:05:32.359 Republican Committee member Andy Barr joined us to give his 0:05:32.440 --> 0:05:36.680 takeaway on the hearing. There was absolute concentration of control 0:05:37.720 --> 0:05:40.920 of this business, in these various businesses, in the hands 0:05:40.920 --> 0:05:44.120 of a very small group of in his in his words, 0:05:44.520 --> 0:05:49.720 grossly inexperienced and unsophisticated individuals. We also spoke by Democratic 0:05:49.720 --> 0:05:53.360 Committee member Brad Sherman, who says Sam Bankman Freed's downfall 0:05:53.400 --> 0:05:57.960 points to a need for more crypto regulation. When you're 0:05:58.000 --> 0:06:02.360 dealing with an enterprise, purpose of which is to come 0:06:02.440 --> 0:06:07.000 up with a currency system that allows you to evade 0:06:07.160 --> 0:06:11.440 American financial law. Then you're going to be dealing with 0:06:11.520 --> 0:06:15.359 people who are going to evade American financial law. Corgresson, 0:06:15.400 --> 0:06:18.320 Brad Sherman, and Andy Barr both were guests on Bloomberg 0:06:18.440 --> 0:06:20.839 Sound On with Joe Matthew. Catch the program Like Davis 0:06:20.880 --> 0:06:23.360 at five pm Eastern on Bloomberg Radio. Now, let's turn 0:06:23.440 --> 0:06:25.880 to some geopolitical news this morning. Karen, we're seeing rising 0:06:25.880 --> 0:06:28.920 tensions again between the world's two economic superpowers, the Biden 0:06:28.960 --> 0:06:32.000 administrations putting China's leading maker of memory chips and more 0:06:32.040 --> 0:06:35.680 than thirty other companies on its trade blacklist that would 0:06:35.680 --> 0:06:39.080 prevent them from buying certain American technology. And another note 0:06:39.080 --> 0:06:41.680 on China, Nathan, Bloomberg News has learned Chinese leaders are 0:06:41.680 --> 0:06:44.560 planning to proceed with a closely watched economic policy meeting 0:06:44.600 --> 0:06:47.760 in Beijing tomorrow. The decision comes as COVID infections surge 0:06:47.760 --> 0:06:51.320 across the capitol. Senior Chinese officials meet every December topplot 0:06:51.320 --> 0:06:54.800 out economic policy for the coming year. Straight ahead, your 0:06:54.839 --> 0:06:58.000 latest local headlines, plus a check of sports. And this 0:06:58.360 --> 0:07:04.760 is Bloomberg in teren six O seven on Wall Street. 0:07:04.760 --> 0:07:06.760 Thirty two degrees in central parts. Gonna be sunny, but 0:07:06.880 --> 0:07:09.520 continued chili today with highs only near forty degrees, back 0:07:09.520 --> 0:07:12.080 down to the low thirties tonight. Amy Morris is here 0:07:12.120 --> 0:07:13.800 with more on what's going on in New York and 0:07:13.920 --> 0:07:16.800 around the world. Morning Amy, Good Morning Nathan. A three 0:07:16.840 --> 0:07:19.160 alarm fire has led to the partial collapse of a 0:07:19.200 --> 0:07:22.640 New York Police Department evidence center in Brooklyn. The fire 0:07:22.840 --> 0:07:25.960 was first reported by Police Department contractors working inside the 0:07:26.000 --> 0:07:29.520 Auto Pound. Acting Chief Jeffrey Madri says the workers saw 0:07:29.680 --> 0:07:31.800 flames that appeared to have started on one of the 0:07:31.880 --> 0:07:34.800 evidence shelves, and they called for help. They saw a fire, 0:07:34.920 --> 0:07:39.160 They alerted the police Department personnel inside. Everyone backed out 0:07:39.760 --> 0:07:42.520 was alerted. Fire officials say everything inside the facility was 0:07:42.560 --> 0:07:45.440 either lost or damaged. The fire is expected to burn 0:07:45.520 --> 0:07:48.720 for days. President Biden has signed the Historic Respect for 0:07:48.800 --> 0:07:52.960 Marriage Act, cementing federal protection for same sex and interracial 0:07:53.000 --> 0:07:56.600 marriages into law. Who do you love and would you 0:07:56.680 --> 0:08:01.600 be loyal that person you love? It's more complicated than that. 0:08:02.440 --> 0:08:05.840 The law recognized that everyone should have the right to 0:08:05.880 --> 0:08:12.400 answer those questions. For themselves without the government interference. President 0:08:12.400 --> 0:08:15.000 Biden says the law requires it a racial marriage and 0:08:15.120 --> 0:08:18.400 same sex marriage be recognized as legal in every state. 0:08:18.680 --> 0:08:22.040 A New Wall Street Journal polls shows Florida Governor Rhnde 0:08:22.080 --> 0:08:25.200 Santis now holds an early lead over Donald Trump among 0:08:25.240 --> 0:08:28.320 GOP primary voters fifty two to thirty eight percent. In 0:08:28.360 --> 0:08:31.400 a hypothetical contest, we told you yesterday in New York 0:08:31.440 --> 0:08:34.080 is encouraging people to mask up. New Jersey won't be 0:08:34.120 --> 0:08:37.160 putting a mandate in place. Well, now we're learning. Connecticut 0:08:37.160 --> 0:08:39.800 Governor Ned Lamont also says there's no need at this 0:08:39.880 --> 0:08:42.960 point for a mandate. The Hartford Current reports. Lamont says 0:08:42.960 --> 0:08:45.520 he sees no immediate concerns, but that you should wear 0:08:45.559 --> 0:08:48.120 a mask if you show any symptoms, and you need 0:08:48.160 --> 0:08:51.200 to get boosted if you haven't yet. The chief epidemiologist 0:08:51.200 --> 0:08:53.920 at Hartford Healthcare, however, says you really do need to 0:08:53.920 --> 0:08:56.880 wear a mask indoors as flu and COVID cases rise, 0:08:57.200 --> 0:08:59.960 and Governor Lamont has ordered all US and state flag 0:09:00.000 --> 0:09:02.680 it's to half staff today in remembrance of the victims 0:09:02.679 --> 0:09:05.360 of the Sandy Hook Elementary School killings. It was ten 0:09:05.440 --> 0:09:08.240 years ago today Adam Lanza opened fire at the school, 0:09:08.480 --> 0:09:12.040 killing twenty children and six adults. Global News twenty four 0:09:12.080 --> 0:09:14.959 hours a day on errand on Bloomberg Quicktake, powered by 0:09:15.000 --> 0:09:17.719 more than twenty seven hundred journalists and analysts in more 0:09:17.720 --> 0:09:21.559 than one hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan. 0:09:21.679 --> 0:09:28.480 Thanks six o nine on Wall Street Time for the 0:09:28.480 --> 0:09:30.360 Bloomberg Sports up they brought to you by Tri State 0:09:30.400 --> 0:09:32.960 out of your John Sanshwer, Thanks Dathan. Another example of 0:09:32.960 --> 0:09:36.040 a baseball player who turned down a contract offer, hit 0:09:36.120 --> 0:09:39.560 free agency and ended up making much more money happened 0:09:39.559 --> 0:09:42.600 with Aaron Judge Andrew Bogarts. Now Carlos Correa wants the 0:09:42.600 --> 0:09:46.199 first overall pick are the Astros. Houston offered him five years, 0:09:46.200 --> 0:09:48.560 a hundred and sixty million a couple years ago. Korea 0:09:49.080 --> 0:09:52.200 just signed with the San Francisco Giants thirteen years, three 0:09:52.360 --> 0:09:56.360 hundred and fifty million. Between Corea, Bogarts and Trey Turner. 0:09:56.480 --> 0:10:00.560 Three shortstops just signed contracts worth nine hundred and every million. 0:10:00.600 --> 0:10:03.480 The Devil's the last month had that thirteen game win streak, 0:10:03.640 --> 0:10:05.400 have now lost their last three, beaten at home by 0:10:05.440 --> 0:10:08.040 Dallas for to one. Islanders lost in Boston for three 0:10:08.400 --> 0:10:12.120 in the shootout, Washington in Chicago and m Milestone goal 0:10:13.440 --> 0:10:20.400 turn over in fraud and cost shot they score Salle. 0:10:22.240 --> 0:10:27.000 It's eight hundred goals in the National Hockey League. K 0:10:27.600 --> 0:10:30.240 had to call two more goals in Ovechkin passes Gordy 0:10:30.280 --> 0:10:33.160 Howe for second all time. He's still going strong at 0:10:33.160 --> 0:10:35.200 age thirty seven. That we'll see if he can break 0:10:35.200 --> 0:10:39.320 a record. Most felt was unreadable Wayne Gretzky's league leading 0:10:39.360 --> 0:10:42.160 eight hundred and ninety four career goals. Sal Thanks beat 0:10:42.200 --> 0:10:45.240 the Lakers in overtime. Utah end in New Orleans. Seven 0:10:45.280 --> 0:10:47.640 game wins make a battle the last two NBA champs. 0:10:47.679 --> 0:10:50.679 Milwaukee beat Golden State. Nick's played tonight in Chicago with 0:10:50.679 --> 0:10:54.240 the World Cup Today's defending champion France and Cinderella Morocco. 0:10:54.800 --> 0:10:58.680 The winner plays Argentina in Sunday's final. Mississippi State is 0:10:58.720 --> 0:11:01.320 going to play its bowl, aim the school saying that's 0:11:01.360 --> 0:11:04.520 what coach Mike Leach would have wanted. Leach passed away 0:11:04.520 --> 0:11:07.880 at sixty one. Leach was a true football innovator and 0:11:07.960 --> 0:11:12.240 a true character. John's Bloomberg Sports Nathan all Right, John, 0:11:12.280 --> 0:11:15.080 thank you Bloomberg Sports Report was brought to you by Audie. 0:11:15.080 --> 0:11:17.000 If don't let someone else drive off in the autie 0:11:17.080 --> 0:11:20.840 model you've always wanted, visit your local tri state autie 0:11:20.840 --> 0:11:23.040 dealer to get behind the wheel of yours today, or 0:11:23.120 --> 0:11:26.640 visit autie Offers dot com for more information. Ahead of 0:11:26.679 --> 0:11:29.640 the market open, ahead of the Fed decision, the final 0:11:29.840 --> 0:11:34.199 policy decision of two futures are moving just a touch 0:11:34.280 --> 0:11:37.560 lower now. We have SMP futures down six points, a 0:11:37.600 --> 0:11:41.280 decline of about a tenth percent. NAZAC or futures are 0:11:41.320 --> 0:11:43.679 down twenty four points, that's a drop of two tenths percent, 0:11:43.679 --> 0:11:45.600 and the Dow futures right now down a tenth percent 0:11:45.760 --> 0:11:48.719 or thirty seven points ten. Your treasury is up to 0:11:48.960 --> 0:11:52.120 thirty seconds yield three point four nine percent yield on 0:11:52.200 --> 0:11:55.040 the two year four point one seven percent. Looking at 0:11:55.080 --> 0:11:57.600 the thirty year yield right now, that's at three point 0:11:57.679 --> 0:12:03.360 five four percent six twelve on Wall Street. This is 0:12:03.400 --> 0:12:07.040 Bloomberg Daybreak, as we are now just hours away from 0:12:07.040 --> 0:12:10.080 the final policy decision from the Federal Reserve of twenty 0:12:10.200 --> 0:12:13.600 twenty two. Bloomberg Economics and Policy correspondent Michael McKee is 0:12:13.640 --> 0:12:17.320 in Washington, d c for the FEDS move on rates 0:12:17.400 --> 0:12:19.880 and the news conference, of course from chair j Powell 0:12:19.920 --> 0:12:22.199 and Mike is with us now live from our Bloomberg 0:12:23.000 --> 0:12:27.240 studios in Washington, d C. Welcome back, Mike. The wide 0:12:27.280 --> 0:12:30.040 expectation is that this is gonna be the day the 0:12:30.080 --> 0:12:34.280 Fed starts to ease up on the gas. You know, 0:12:34.440 --> 0:12:36.920 it's kind of funny. I was talking about this earlier. 0:12:37.000 --> 0:12:39.280 It's like we're all going to a show, but members 0:12:39.280 --> 0:12:41.440 of the cast have been out telling us the plot 0:12:41.520 --> 0:12:45.440 for quite some time. The FEDS decision to go fifty 0:12:45.440 --> 0:12:49.480 basis points well telegraphed, and nothing in the CPI report 0:12:49.559 --> 0:12:52.920 yesterday changed that. I think they also are going to 0:12:52.960 --> 0:12:55.520 make the case that there are going to be additional 0:12:55.640 --> 0:13:00.120 rate increases, and they will have new economic forecast and 0:13:00.280 --> 0:13:03.320 the new dot plot out. So even though we know 0:13:03.360 --> 0:13:05.120 what the rate move is going to be, there's gonna 0:13:05.160 --> 0:13:08.240 be plenty for the market to digest after j Pal 0:13:08.360 --> 0:13:10.800 is done. And I guess there's a little bit of 0:13:10.800 --> 0:13:13.800 a question, isn't there going into this meeting about whether 0:13:14.080 --> 0:13:18.120 the data we've seen on inflation, the ease from the 0:13:18.200 --> 0:13:21.440 peak back in June, is going to be enough for 0:13:21.840 --> 0:13:25.839 Chairman Powell to start to at least hint at UH 0:13:26.200 --> 0:13:31.280 more long term easing up later on in three, or 0:13:31.400 --> 0:13:34.000 whether Chairman pal is going to keep up that hawk 0:13:34.120 --> 0:13:37.800 ish message and sort of fight this market that's looking 0:13:37.800 --> 0:13:40.760 for that pivot. I would likely come down on the 0:13:40.800 --> 0:13:43.400 side of fight the market, because the Fed can always 0:13:43.440 --> 0:13:45.840 change its mind. But if you let the market start 0:13:45.840 --> 0:13:48.559 to believe you're going to cut rate sometime in three, 0:13:48.640 --> 0:13:50.360 then there's a lot of people are gonna figure, well, 0:13:50.400 --> 0:13:52.800 i'll just price that in now, and then that takes 0:13:52.840 --> 0:13:56.320 away the monetary policy impact on inflation that they're trying 0:13:56.360 --> 0:13:59.160 to have. So I think he'll be as ambiguous as 0:13:59.200 --> 0:14:01.960 possible and say something like we're going to leave rates 0:14:01.960 --> 0:14:05.960 for an extended period um to try to convince people 0:14:06.040 --> 0:14:10.720 that there's no there's nothing on the horizon right now 0:14:10.880 --> 0:14:13.600 in terms of rate cuts. That's something that they will 0:14:13.640 --> 0:14:17.280 decide as the year goes along. So it doesn't sound 0:14:17.280 --> 0:14:20.200 then like you're expecting that we're going to get much 0:14:20.240 --> 0:14:23.600 in the way of changes to the language in the 0:14:23.640 --> 0:14:26.800 final f y MC statement. I don't think. So there's 0:14:26.800 --> 0:14:29.880 not a lot of percentage change for UH for gain 0:14:30.000 --> 0:14:33.920 for them in doing that. They will adjust the economic 0:14:34.360 --> 0:14:38.840 outlook economic analysis a little bit to reflect the latest data. 0:14:39.240 --> 0:14:41.040 It will be interesting to see what they say about 0:14:41.040 --> 0:14:45.320 inflation after the CPI report, Probably something along the lines 0:14:45.440 --> 0:14:49.680 of inflation improved, but there are still pressures out there, 0:14:49.760 --> 0:14:52.920 something something like that. But the rest of it is 0:14:53.160 --> 0:14:56.080 probably going to be pretty much word for word what 0:14:56.120 --> 0:14:59.400 we have seen in the past several statements. What are 0:14:59.440 --> 0:15:04.280 you looking for, Mike, in terms of the projections on unemployment, 0:15:04.400 --> 0:15:07.560 the tightness in the labor market that's been so vexing 0:15:07.680 --> 0:15:10.200 for this FED over the last few months. That'll be 0:15:10.240 --> 0:15:11.960 an interesting thing to look at it when we get 0:15:12.000 --> 0:15:14.520 the summary of economic projections, because of course the FIT 0:15:14.600 --> 0:15:18.040 had been forecasting that we would get to four and 0:15:18.040 --> 0:15:21.280 a half percent or so on unemployment by the time 0:15:21.280 --> 0:15:25.000 they were finished. Well, they're almost finished, probably raising rates, 0:15:25.080 --> 0:15:30.800 and unemployment really hasn't moved significantly. So do they expect 0:15:31.640 --> 0:15:35.680 still expect a big move in unemployment? And uh? If so, 0:15:36.320 --> 0:15:40.760 then the question would be why, you know, given that 0:15:40.800 --> 0:15:43.520 this is the last policy decision of the year, it's 0:15:43.600 --> 0:15:46.320 kind of interesting to sort of think about what the 0:15:46.360 --> 0:15:52.240 effect of this really aggressive rate tightening over this last 0:15:52.320 --> 0:15:56.360 year has done. In two I mean we haven't really 0:15:56.400 --> 0:16:01.280 experienced uh, this kind of rapid increase in interest rates 0:16:01.360 --> 0:16:05.360 in decades. Mike. Yeah. The old saying is that the 0:16:05.400 --> 0:16:09.240 policy works with long and variable lags. And that's true 0:16:09.280 --> 0:16:12.600 because many of the decisions that you make based on 0:16:12.720 --> 0:16:17.880 buying UM costs are borrowing costs rather are things that 0:16:17.920 --> 0:16:22.400 are are more expensive and take longer to to decide on, 0:16:22.920 --> 0:16:26.960 say moving house or buying a car, buying appliances, that 0:16:27.080 --> 0:16:30.080 sort of thing. So it does take a while for 0:16:30.800 --> 0:16:35.000 the borrowing costs to reach the end consumer of it, 0:16:35.040 --> 0:16:37.560 even though they get priced into the markets right away. 0:16:37.640 --> 0:16:40.480 And so, uh, the ft isn't sure yet how much 0:16:40.520 --> 0:16:43.800 of an impact it has had, and most of that 0:16:43.840 --> 0:16:47.360 will probably come first second quarter of next year, and 0:16:47.440 --> 0:16:50.840 so we'll see, uh, we we will see this caution 0:16:50.920 --> 0:16:53.760 from them about how high they need to go because 0:16:53.800 --> 0:16:57.520 they don't know yet what they've already done. Our last 0:16:57.520 --> 0:17:00.560 thirty seconds here, Mike, what's the main point you're looking 0:17:00.600 --> 0:17:03.640 to hear from Chairman Powell today? Well, I think everybody 0:17:03.760 --> 0:17:06.680 kind of wants to know where we are in a timeline. 0:17:06.920 --> 0:17:11.120 Do we continue to raise rates at every meeting? Uh? 0:17:11.200 --> 0:17:14.080 Does does that slow down? Um? And then I think 0:17:14.119 --> 0:17:17.320 everybody wants to know whether he is going to support 0:17:17.320 --> 0:17:20.800 Morocco or France playing in the World Cup at exactly 0:17:20.840 --> 0:17:24.399 the time the FED is meeting. So so a lot 0:17:24.440 --> 0:17:27.720 of people are gonna be torn between flipping between those 0:17:27.720 --> 0:17:30.000 two things. On Toll, Well, we know that there isn't 0:17:30.000 --> 0:17:34.480 gonna be any lag to your productivity today Bloomberg's Michael, Yeah, 0:17:34.480 --> 0:17:36.320 you're probably gonna be watching it. You're gonna have like 0:17:36.359 --> 0:17:39.080 two eyes, one on Pal, one on the game. Thanks 0:17:39.119 --> 0:17:43.000 as always, Mike with us this morning from Washington ahead 0:17:43.000 --> 0:17:45.800 of the FED decision and the j Pal news conference 0:17:45.880 --> 0:17:49.600 that Mike will be watching with the game on his smartphone. 0:17:50.080 --> 0:17:52.720 Bloomberg Radio and Television hasn't for you covered a special 0:17:52.800 --> 0:17:56.880 edition to Bloomberg Surveillance. Starting at one thirty Wall Street time. 0:17:56.920 --> 0:18:03.240 You're listening to Bloomberg Daybreak this morning, markets headlines and 0:18:03.359 --> 0:18:06.640 breaking news twenty four hours a day at Bloomberg dot Com, 0:18:06.760 --> 0:18:10.320 the Bloomberg Business at Hand at Bloomberg Cricktake. This is 0:18:10.320 --> 0:18:19.280 a Bloomberg Business Flash and I'm Karen Moscow. US Dog 0:18:19.320 --> 0:18:23.119 index futures have turned lower as investors debate weather inflation 0:18:23.280 --> 0:18:26.480 has east enough to encourage the fed to slow monetary tightening. 0:18:26.680 --> 0:18:29.480 We checked the markets all day long here on Bloomberg Radio. 0:18:29.680 --> 0:18:32.520 S and P futures they're done about nine points right now, 0:18:32.520 --> 0:18:34.840 down to tens of upper cent. DAL futures down to 0:18:34.960 --> 0:18:37.440 tens of upper cent or sixty three points, and NASDAC 0:18:37.480 --> 0:18:40.679 features down three tons percent or thirty six points. The 0:18:40.760 --> 0:18:43.400 decks in Germany's down eight tenths of upper cent ten. 0:18:43.440 --> 0:18:46.080 Your treasury, little change, you'll three point four nine percent 0:18:46.119 --> 0:18:48.600 they yield on a two year four point one eight percent. 0:18:49.000 --> 0:18:51.560 Nine X screwt oil is up one percent or seventy 0:18:51.600 --> 0:18:53.960 three cents at seventy six dollars, twelve cents of Barrel 0:18:54.280 --> 0:18:56.560 comic school down four tens per cent or six dollars 0:18:56.600 --> 0:18:59.639 ninety cents in eighteen eighteen sixty announced. And that's a 0:18:59.680 --> 0:19:02.480 bloom Burg business flash. Now here's Amy Morris with Moore 0:19:02.560 --> 0:19:05.359 on what's going on around the world. Amy, thank you, Karen. 0:19:05.440 --> 0:19:07.560 Lawmakers have hammered out a deal in a framework to 0:19:07.640 --> 0:19:10.960 fund the government this fiscal year, helping to avert a shutdown. 0:19:11.200 --> 0:19:13.879 The House luct committee investigating last year's attack on the 0:19:13.920 --> 0:19:16.760 US Capitol will hold its final session on Monday, and 0:19:16.800 --> 0:19:19.359 in sports. In the NHL, Alex of Etchkin reaches eight 0:19:19.480 --> 0:19:22.359 hundred career goals, the Caps won, the Devil's lost, the 0:19:22.400 --> 0:19:25.040 Bruins beat the Islanders, and in the NBA the Celtics 0:19:25.119 --> 0:19:28.040 one of the Warriors lost. Global News twenty four hours 0:19:28.040 --> 0:19:31.280 a day, powered by more than twenty journalists and analysts 0:19:31.280 --> 0:19:34.000 in more than one hundred twenty countries. I'm Amy Morris. 0:19:34.000 --> 0:19:36.560 This is Bloomberg, Nathan. Thanks Amy. It's six twenty three 0:19:36.560 --> 0:19:39.600 on Wall Street. I'm Nathan Hager. This is Bloomberg Daybreak, 0:19:39.600 --> 0:19:41.280 and we want to bring you more of our coverage 0:19:41.280 --> 0:19:43.280 of the collapse of a f t X and the 0:19:43.359 --> 0:19:46.600 arrest of its co founder, Sam Bankman Freed. Bloomberg Washington 0:19:46.640 --> 0:19:50.760 correspondent Joe Matthew spoke with Democratic Congressman Brad Sherman about 0:19:50.760 --> 0:19:53.840 what we learned yesterday when ft X is current CEO 0:19:54.000 --> 0:19:57.400 testified before the House Financial Services Committee and the kind 0:19:57.480 --> 0:20:01.600 of punishment Sam Bankman Freed could face. What do you 0:20:01.640 --> 0:20:05.760 think of John Ray. I think he's doing a good job. 0:20:05.880 --> 0:20:09.800 But the the barn door was open, the horses left, 0:20:09.920 --> 0:20:13.960 and the we'll see what he what he can do. 0:20:13.960 --> 0:20:16.920 Do you have an allergy to crypto just in general. 0:20:16.960 --> 0:20:18.879 And there's no wrong answers here. This isn't like a 0:20:18.880 --> 0:20:21.160 crypto show on Bloomberg or anything. But I can see 0:20:21.160 --> 0:20:25.520 you're not a fan. No, the I've been trying for 0:20:25.600 --> 0:20:30.040 five years to either banned American investment in crypto or 0:20:30.080 --> 0:20:34.920 to force the entire crypto ecosystem to follow them know 0:20:35.119 --> 0:20:39.920 your Customer rules. They won't do that because the whole 0:20:40.000 --> 0:20:43.879 purpose of crypto, the business plan, is to be a 0:20:44.160 --> 0:20:50.000 secret currency, hence the term cryptocurrency, and to compete with 0:20:50.040 --> 0:20:53.760 the US dollar by having one advantage over the US dollar, 0:20:54.000 --> 0:20:57.919 and that is that it's a currency. They can be 0:20:57.920 --> 0:21:03.680 better used by those who engage in sanctions, evasion, tax evasion. 0:21:04.520 --> 0:21:07.879 Um based in bankman Freed will tell you about bankruptcy, 0:21:07.920 --> 0:21:12.320 court evasion, drug dealing, etcetera. Is this the moment here? 0:21:12.680 --> 0:21:15.120 Is ft X a crypto story that is this sort 0:21:15.119 --> 0:21:18.359 of the the hook that leads to the regulation or 0:21:18.400 --> 0:21:23.159 is this just an old fashioned offshore robbery story. Um 0:21:23.200 --> 0:21:26.359 My fear is that it will be regarded as the latter. 0:21:26.960 --> 0:21:32.080 And the fact is, though, when you're dealing with an enterprise, 0:21:32.480 --> 0:21:35.520 the whole purpose of which is to come up with 0:21:35.600 --> 0:21:41.720 a currency, system that allows you to evade American financial law. 0:21:42.720 --> 0:21:45.040 Then you're going to be dealing with people who are 0:21:45.080 --> 0:21:48.280 going to evade American financial law. Talk to us about 0:21:48.320 --> 0:21:51.360 the donation's Congressman, are you concerned the Democrats who took 0:21:51.359 --> 0:21:54.920 money from Sam Bank and Freed could bring credibility issues 0:21:55.080 --> 0:21:58.919 to this story. Are the two parties prepared to tackle 0:21:58.960 --> 0:22:03.200 this together? Well? Uh, the fact is Sam bankman Freed 0:22:03.480 --> 0:22:06.199 uh did interview last month in which he said he 0:22:06.280 --> 0:22:10.240 gave as much money to Republicans as Democrats, but the 0:22:10.280 --> 0:22:14.520 Republican money he gave the dark money organizations. And he 0:22:14.560 --> 0:22:16.919 explained why, and it made perfect sense. He says, the 0:22:16.960 --> 0:22:21.439 press is liberal, probably is, and they would have beaten 0:22:21.520 --> 0:22:25.040 him up for giving money two Republicans. So he gives 0:22:25.040 --> 0:22:28.160 the Republican money under the table, gives the Democratic money 0:22:29.480 --> 0:22:34.639 over the table. He's an equal opportunity influence purchasers. And 0:22:34.680 --> 0:22:39.600