WEBVTT - Rupkey: Yellen's tone is irritating

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<v Speaker 1>Broadcasting live to New York, Cloomberg eleventh Rio to Washington,

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<v Speaker 1>Bloomberg to the Country, US Exam Channel one ninety and

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<v Speaker 1>around the globe the Bloomberg Radio Bust and Bloomberg dot Com.

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<v Speaker 1>This is Bloomberg Surveillance. Good morning. It is Say thirty

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<v Speaker 1>on Well Street Michael McKee along with Tom Keene Economic

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<v Speaker 1>indicators brought to you by Commonwealth Financial Network. When it's

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<v Speaker 1>time to change the conversation, talk with a broker dealer

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<v Speaker 1>r I A that's ready to listen Call eight six

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<v Speaker 1>six four six two three six three. Visit Calealth dot

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<v Speaker 1>com to learn more. Here's Vinnedale Judais with some economic data. Hello, Michael.

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<v Speaker 1>Jobless claims up last week, up by seven thousand and

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<v Speaker 1>two hundred sixty five thousand, just about in line with forecast.

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<v Speaker 1>The current account trade deficit the broadest measure of trade

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<v Speaker 1>meantime narrowing in the fourth quarter. We're still waiting for

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<v Speaker 1>the Philadelphia Feeds Regional Manufacturing Report ten am, New York.

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<v Speaker 1>Time we get figures on Jolt's job openings. Let's talk

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<v Speaker 1>about the FED and the CPI real quickly Thursday, Uh,

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<v Speaker 1>the CPI core topping forecast, a barage of reports from

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<v Speaker 1>Wall Street. I might say I was kicking myself for

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<v Speaker 1>missing it, A barage of reports saying this means the

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<v Speaker 1>Fed is gonna go hawk ish. They're gonna signal a

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<v Speaker 1>tighter grip. What happens, you know what happens, you know,

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<v Speaker 1>they go otherwise. Now this morning we have Alan Greenspan. You,

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<v Speaker 1>of course remember him saying inflation coming back is an

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<v Speaker 1>issue when he cites the CPI data. Thoughts, I think

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<v Speaker 1>that the Broncos are gonna have to find a quarterback somewhere. Well,

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<v Speaker 1>there is that, but you have to wonder. No, But

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<v Speaker 1>I think video you bring up a really important point,

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<v Speaker 1>which is the jumble is out there right now. I

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<v Speaker 1>like the I'm putting out right now in Bloomberg go

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<v Speaker 1>Vinnie's comment on the current account balance, which I haven't

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<v Speaker 1>looked at the ages and it's still I have to

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<v Speaker 1>look at it compared to GDP. But it's sporting. Mike, absolutely, Vinnie,

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<v Speaker 1>Thank you. Video. Uh. Vinny raises a good point. Chris

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<v Speaker 1>Rupti Bank of Tokyo mitsu Ishi to answer the question.

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<v Speaker 1>Chris we got this economic data. We don't care right

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<v Speaker 1>because the FEDS doesn't care what's happening in the US

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<v Speaker 1>right now. I mean, how do you how do you do? Yeah?

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<v Speaker 1>I don't know. You know. Sometimes I hope I didn't

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<v Speaker 1>overreact to the FEDS news yesterday. You know, the tone

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<v Speaker 1>of the chairs testimony Q and A session is a

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<v Speaker 1>little irritating with all the risks and uncertainty. She points

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<v Speaker 1>to I. You know, I guess when you just break

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<v Speaker 1>down what happened yesterday, ten of seventeen, we're looking for

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<v Speaker 1>four rate hikes. You know, the committee split, you know,

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<v Speaker 1>in terms of ideology and what they should do about it.

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<v Speaker 1>So before in December ten of seventeen looks for for

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<v Speaker 1>four great hikes. Now seven of seventeen hold that position,

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<v Speaker 1>which is essentially three. So we went from ten to

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<v Speaker 1>seven out of seventeen. I hope we didn't exaggerate it,

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<v Speaker 1>but yeah, I was a little disappointed. Uh oh, come on,

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<v Speaker 1>come on, folks, let me reach stop it. Chris, let

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<v Speaker 1>me translate this for all of you worldwide. Chris Rusky

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<v Speaker 1>synthesizes in short cogent balanced notes the full faith and

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<v Speaker 1>credit fixed income market into economics. Literally like no one

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<v Speaker 1>in the world. I mean, every every economist has skill sets. Chris,

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<v Speaker 1>you are the foundation of optimistic com I quote Michael Incredibly,

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<v Speaker 1>the fedacies even less urgency to normalize interest rates at

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<v Speaker 1>today's meeting. Rutky was on fire yesterday at three p m.

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<v Speaker 1>I say, yeah, well, what can I tell you? It's uh,

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<v Speaker 1>it's with a wind up like that. I'm almost speechless here. Yeah,

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<v Speaker 1>you know, it's just the policy is being run under

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<v Speaker 1>the yelling sad, which is similar to the Bernaki said,

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<v Speaker 1>it's been ten years now. It's it's being done very

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<v Speaker 1>different than how Greenspan would have done it. How do

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<v Speaker 1>you have done I think they would have normalized rates

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<v Speaker 1>when Yelling says they're not on a presect course to

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<v Speaker 1>raise rates. I don't think that's appropriate. Apology. Well, Mike,

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<v Speaker 1>I don't mean to interrupt Chris, but I think this

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<v Speaker 1>is really important. Mike. Did Ellen Greenspan ever have dead

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<v Speaker 1>or live meetings? They were all alive because there was

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<v Speaker 1>no news conference in those days. I mean, and that's

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<v Speaker 1>the bizarre thing is they've added the news conference, but

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<v Speaker 1>only every other meeting, So uh, the ones without news conferences, Chris,

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<v Speaker 1>everybody just ignores. Yeah, it's just I mean, everything seems

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<v Speaker 1>to be a little broken. I hope I'm not showing

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<v Speaker 1>my age here, the baby boom generation. But the markets

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<v Speaker 1>are very, very different. And one of the crazy things

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<v Speaker 1>is that, you know, the Feds looking to the markets,

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<v Speaker 1>the markets are looking at the said everyone's relying on

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<v Speaker 1>your dollar futures, which is the string of you know,

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<v Speaker 1>futures contracts where you can bet on where three month

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<v Speaker 1>libel is going to be in the future. The path

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<v Speaker 1>of rates the sad things, but that curves enormously distorted

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<v Speaker 1>by the fact all this corporate bond issuance and swapping

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<v Speaker 1>where people want to pay floating rates. Who wouldn't you know,

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<v Speaker 1>you usul a bond at three or four percent and

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<v Speaker 1>you end up paying just point five right, the said

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<v Speaker 1>funds rates. So that curve is distorted by the fact

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<v Speaker 1>that the Fed's kept rates down here for eight years.

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<v Speaker 1>You know, people are taking the bed. It's like I

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<v Speaker 1>tell people rates are going to go up, and people say, okay,

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<v Speaker 1>but in the meantime, I'm gonna pay floating here. I mean,

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<v Speaker 1>who would not want to x money free? Remember the

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<v Speaker 1>concept of the risk free interest rate, risk free return

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<v Speaker 1>I mean everything I learned as a c if A

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<v Speaker 1>has gone out the window here at the moment with

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<v Speaker 1>this zero zero rate idea. But I don't want to

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<v Speaker 1>get two worked up here. No I'm not angry. No,

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<v Speaker 1>you wouldn't be. You come into work every day and

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<v Speaker 1>you have no reason for being well. I think we're

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<v Speaker 1>gonna come back with Chris Ruppie quickly, Chris, how many

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<v Speaker 1>rate hikes this year? I'm gonna say free, because really

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<v Speaker 1>I have to. I have to be the lone voice

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<v Speaker 1>and the wilderness. Yeah, no, I think they need in

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<v Speaker 1>a normal, live po Okay, we're gonna set up here.

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<v Speaker 1>This is a beautiful and respectful debate between Mr Ruskie

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<v Speaker 1>and Bank of Tokyo, and it's a bi of course,

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<v Speaker 1>ellen Zenter making a huge splash a Morgan Stanley aggressively

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<v Speaker 1>last year and now even further going to one rate

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<v Speaker 1>hike uh this year. So that sets up a nice

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<v Speaker 1>tension to move his forward, and of course the effect

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<v Speaker 1>on yields and the effect on markets as well, some

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<v Speaker 1>real emotion. Two hours ago after the BOE announcement, currency

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<v Speaker 1>markets have stabilized. Yeah, one eleven eighty three weaker yen.

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<v Speaker 1>What's happening around the world. Let's get the answer from

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<v Speaker 1>Michael Barb. Mike con thank you very much. President Vladimir

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<v Speaker 1>Putin says Russia can again build up its forces in

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<v Speaker 1>Syria in a few hours if necessary, and we will

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<v Speaker 1>continue to strike extremist groups. On Monday, Putin ordered the

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<v Speaker 1>withdrawal of the bulk of Russian war planes from Syria,

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<v Speaker 1>as Syrian peace talks began in Geneva. U s Supreme

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<v Speaker 1>Court nominee Merritt Garland will meet Democratic Senators Harry Reid

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<v Speaker 1>and Patrick Leahy on Capitol Hill today. Senate Republicans insists

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<v Speaker 1>they will not consider any nominee until a new president

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<v Speaker 1>takes office. Anti government protests erupted in Brazil, and it

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<v Speaker 1>comes after President dil Marusso named Luis Ignatio Lula the

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<v Speaker 1>Silva as chief of staff yesterday. Russef says the move

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<v Speaker 1>was not the shield the former president from a corruption probe,

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<v Speaker 1>but a federal judge released phone recordings that critics say

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<v Speaker 1>suggest otherwise. President Obama spoke at a White House event

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<v Speaker 1>yesterday to celebrate a women's history month. The president says

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<v Speaker 1>it's time for the nation's leaders to reflect the majority

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<v Speaker 1>of its population. Wouldn't it be better for America if

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<v Speaker 1>women weren't discouraged from seeking office because of double standards,

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<v Speaker 1>and we have more women and possessions of power of

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<v Speaker 1>high office. Global News twenty four hours a day, powered

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<v Speaker 1>by our journalists and more than one hundred fifty news

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<v Speaker 1>bureaus from around the world. Michael la Bar, Mike Tom,

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<v Speaker 1>Thank you, Michael. Time now for the ran Contina Auto

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<v Speaker 1>Group Bloomberg NBC Sports Update. If that means John stash up, Michael.

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<v Speaker 1>The Knicks play of the Warriors. Nick fans can't help

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<v Speaker 1>but wonder what could have been the two thousand nine

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<v Speaker 1>NBA draft. Golden State had the seventh pick that year

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<v Speaker 1>and took Steph Curry. The Knicks picked eight, would have

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<v Speaker 1>taken and Curry. Had the Warriors not, they settled for

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<v Speaker 1>the long since forgotten Jordan Hill day at the office

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<v Speaker 1>for Curry last night, thirty four points without even playing

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<v Speaker 1>the fourth quarter, made eight of thirteen threes. The Warriors

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<v Speaker 1>rolled eighty five, now sixty one and six with fifty

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<v Speaker 1>consecutive regular season home victories. It's the knicks nineteenth loss

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<v Speaker 1>in their last twenty five games. Rangers in Anaheim out

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<v Speaker 1>ended two games losing streak at Kevin Klein. Giveaway in

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<v Speaker 1>the first period led to a Duck's goal, but Clients

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<v Speaker 1>scored in the second and then then again with six

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<v Speaker 1>forty left in the third for a two one win.

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<v Speaker 1>Cliented only scored six goals all year. He had never

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<v Speaker 1>had a two goal game. It's eleven year NHL career

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<v Speaker 1>college basketball n C Double A wins for Holy Cross

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<v Speaker 1>and Michigan. The tournament begins in Earnest today. Seaton Hall,

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<v Speaker 1>having just won the Big East Tournament for the first

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<v Speaker 1>time since nineteen three, takes on Ginzaga in Denver. That's

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<v Speaker 1>the last of the games today. Iona is also in Denver.

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<v Speaker 1>The Gale tip at two o'clock against Iowa State Stony

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<v Speaker 1>Brooks first Turney game ever Tonight in Des Moines, Iowa

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<v Speaker 1>against Kentuck. Also Yale's first n C double Day games

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<v Speaker 1>with nineteen sixty two versus Baylor. Yukon takes on Colorado.

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<v Speaker 1>Monmouth got snugged by the n C Double A did

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<v Speaker 1>advance of the n I t over buck Now Wagner

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<v Speaker 1>me St. Bonaventure, Hofstra outstoed by g W eight two

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<v Speaker 1>eighty Princeton lofton overtime at Virginia Tech with the Bloomberg

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<v Speaker 1>NBC Sports update of John Stashow. John, thanks so much.

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<v Speaker 1>What an interesting market, and of course things have quieted

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<v Speaker 1>down here or futures were negative eight nine, you didn't

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<v Speaker 1>see it so much in the equity markets. The two

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<v Speaker 1>year yield point eight five right now is almost round

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<v Speaker 1>trip this morning. I need to get up here, uh quickly,

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<v Speaker 1>just the entry day, the two year yield the low

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<v Speaker 1>point eight one zero six, so we've really bounced back

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<v Speaker 1>off of the Bank of England meeting. Stay with us.

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<v Speaker 1>Bloomberg Surveillance, Bloomberg Sports were what brought you by the

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