Speaker 1: It's the big take from Blueberg News and I Heart Radio.
Speaker 1: I'm West Gasova Today. Inflation prices for everything keep going up.
Speaker 1: How are we going to get out of this? It's
Speaker 1: a little after eleven AM at the Rose Avenue Bakery
Speaker 1: in downtown Washington, d C. And the morning rush is
Speaker 1: finally easing up. An hour ago this place was packed
Speaker 1: with customers here for the bakery, especially doughnuts and cookies
Speaker 1: and of course coffee. Now the bakers are moving fast,
Speaker 1: prepping afternoon orders and getting ready to do it again tomorrow.
Speaker 1: So Jen and Tania are portioning out our black sesame
Speaker 1: cookies their way to eight grams, and then they roll
Speaker 1: them to make the swirl. This is like our cake
Speaker 1: decorating station. We're whipping up some Swiss maring butter cream
Speaker 1: to some Ube coconut cakes. That's Paula Wang. She's a
Speaker 1: co owner of Rose Avenue. Now that COVID is no
Speaker 1: longer front and center and the bakery is open to
Speaker 1: the public again, she says they often sell up. All
Speaker 1: the bakers are here very early in the morning just
Speaker 1: so we can make everything fresh for the day and
Speaker 1: then um we're open until sell out or two PM.
Speaker 1: Sellout more time. You usually sell out between twelve and one.
Speaker 1: It really depends on the day Saturday, as early as noon.
Speaker 1: But like businesses everywhere, the bakery has struggled to keep
Speaker 1: up with inflation that's made just about everything more expensive.
Speaker 1: I asked Paula what it's like keeping a small business
Speaker 1: afloat during chaotic times like this. We were only open
Speaker 1: two days and then yeah, and then we had to
Speaker 1: close everything down. We started doing pre orders maybe around July.
Speaker 1: It was really just a pickup system to keep our
Speaker 1: staff safe and customer states. And then as both got
Speaker 1: more and more comfortable to come in, we expanded the
Speaker 1: preorder system to two more days. And we were in
Speaker 1: that preorder limbo for almost half a year. So here
Speaker 1: you are, business is good and then comes inflation. What's
Speaker 1: that been like? When did you start noticing things were
Speaker 1: starting to free up costwise? Unfortunately, it was simultaneous with
Speaker 1: us trying to open for more days that we started noticing,
Speaker 1: oh man, you know, the cost of eggs and milk
Speaker 1: and all these things are starting to increase and we
Speaker 1: need those. That's like the basis of our ingredients, eggs, milk,
Speaker 1: dairy butter, you know, it's it's a struggle every week
Speaker 1: looking at prices. My partner and I actually kind of
Speaker 1: combine like where we order from, and we see where
Speaker 1: we can get the cheapest things from, like, for example, um,
Speaker 1: even scallions. Uh, you know you could you could have
Speaker 1: bought scallions, a whole bunch of scallions from maybe like
Speaker 1: less than a dollar, but now maybe like three or
Speaker 1: four pieces to go for a dollar fifty. And we
Speaker 1: use scallions and most of our savory items. So that's
Speaker 1: something we even physically go out to like Asian markets,
Speaker 1: local Asian markets and buy from because buying in bulk
Speaker 1: from a distributor is so expensive. Have you been able
Speaker 1: to negotiate better prices or as a small business, you
Speaker 1: do not have that kind of leverage. Because our relationships
Speaker 1: with our distributes are a little new, it's hard to
Speaker 1: have leverage. What we've been doing is seeing what is
Speaker 1: super expensive and kind of tailoring our menu to what
Speaker 1: we can afford to make our mass produce. If that
Speaker 1: means we have to take something off the menu temporarily
Speaker 1: because the item is so expensive to make, then we
Speaker 1: kind of just have to do that. What have you
Speaker 1: taken off the menu. Recently, something that's gone up um
Speaker 1: use you Pure that went from like twenty dollars to
Speaker 1: for a thousand grahams to a hundred dollars for US
Speaker 1: thousand graphs of you superre. So we had to take
Speaker 1: off this very popular use you croissant because we just
Speaker 1: cannot afford to make use your card. Let me ask
Speaker 1: you about employees. Obviously, we've seen as the economy has
Speaker 1: gone through tightening, prices are increasing, a lot of places
Speaker 1: are having trouble retaining their talent. How has that affected you?
Speaker 1: What are you doing about? What have you seen in
Speaker 1: your own workforce? In our particular bakery, one of the
Speaker 1: things that we really want to focus on is retention
Speaker 1: with our employees and making them feel like they're valued here.
Speaker 1: So with our full time stuff, we really want to
Speaker 1: pay them a livable wage. So no matter if that's
Speaker 1: something that's increased because of inflation, we will always try
Speaker 1: to meet it. So if it cuts through our profits
Speaker 1: as an owner, then it just cuts through our profits
Speaker 1: as an owner. We believe in making sure that our
Speaker 1: employees can you live in the city if they need to,
Speaker 1: that that they have the benefits that allow them to
Speaker 1: live a comfortable life, you know, and have you been
Speaker 1: able to retain people? Are you finding that people are
Speaker 1: sticking around? Yeah, full time employees. Retention has been great,
Speaker 1: to be honest, we haven't had the problem of losing
Speaker 1: people for because of money or whatever reasons. You mentioned
Speaker 1: that you're raising pay in order to kind of meet
Speaker 1: the moment, have you had to raise the price of
Speaker 1: your bake goods. Yes, so we did raise prices twice
Speaker 1: during the pandemic. Like what did a donut cost when
Speaker 1: you open versus now? Um? Yeah, when we first started,
Speaker 1: we were charging for we're talking some donuts, and now
Speaker 1: they're five dollars on average. It really depends what goes
Speaker 1: into the donut. We don't want to go any more
Speaker 1: than that because it kind of seems through duduous to
Speaker 1: pay for like a six dollar donut. We actually made
Speaker 1: an announcement on our social media when we did the
Speaker 1: first price change, just to keep everybody in the loop
Speaker 1: that we're not trying to, you know, sell expensive genuts.
Speaker 1: It's just costs more to make them, unfortunately, and you know,
Speaker 1: the things that we need to make the donuts, like
Speaker 1: eggs and milk and butter have been one of the
Speaker 1: hartists hit items during inflation. So when you look into
Speaker 1: the future and you know we have this high inflation
Speaker 1: time right now, can you weather this out as long
Speaker 1: as it last or do you worry at some point
Speaker 1: that that it's just gonna start to have a bad effect. Well,
Speaker 1: we do worry, but we hope to weather the storm
Speaker 1: with the support of our community and our customers. We
Speaker 1: have a lot of loyal customers who have been buying
Speaker 1: since it was just pre orders, and you know, I
Speaker 1: think it helps to be honest with the customer as well.
Speaker 1: We had a lot of great feedback when we first
Speaker 1: had to tell everybody that we had to raise the prices.
Speaker 1: Everybody said, raise them however you however much you need to,
Speaker 1: so you don't close. And we love we loved hearing
Speaker 1: that because we were so worried that everybody was going
Speaker 1: to be upset. But actually people really came together and
Speaker 1: supported our change for prices. So why has inflation hit
Speaker 1: so hard and how long will we be suffering with it?
Speaker 1: Bloomberg's chief economist Tom or Lick has answers after the break.
Speaker 1: I'm here with Tom Or Like Bloomberg's chief economists, Tom,
Speaker 1: thanks for being here. Great to be. It was Tom.
Speaker 1: We were just talking to some people at a local
Speaker 1: bakery in d C. And they were talking about how
Speaker 1: prices are rising for everything and the challenges they have
Speaker 1: with keeping employees and all the other things that come
Speaker 1: to running a business in a time of high inflation.
Speaker 1: We're are feeling it too, no matter what we do.
Speaker 1: Can you just start out by letting us know, what
Speaker 1: is the city of the U. S Academy now as
Speaker 1: an academies When you look at it, what do you see?
Speaker 1: So inflation is still really high? Was and I think
Speaker 1: it's interesting to think about how we got to where
Speaker 1: we are. One way of framing it is to think
Speaker 1: about the current inflation being suffered in the US is
Speaker 1: coming from two different sources. On the one hand, you've
Speaker 1: got shocks to labor markets, not enough workers, too many openings,
Speaker 1: and that's driving wages higher. And when wages go higher,
Speaker 1: households have more money to spend, and that pushes up prices.
Speaker 1: The other big driver of inflation it's been really important
Speaker 1: for the last couple of years, is shocks to specific
Speaker 1: sectors of the economy. So that's all the stuff that
Speaker 1: happened to semiconductors, when supply chains jammed up as a
Speaker 1: result of COVID lockdowns, all the stuff that's happened to
Speaker 1: gas and other energy as a result of Russia's invasion
Speaker 1: of Ukraine, and of course we're talking supply chain that
Speaker 1: has been up ended through the COVID crisis, and now
Speaker 1: indeed we see potentially even you're Russia Ukraine adding to
Speaker 1: some of those supply chain issues, Noble gases key of
Speaker 1: course to the chip sector. And it's these two drivers together,
Speaker 1: the tightness in labor markets pushing up wages, and the
Speaker 1: shocks to particular sectors like semiconductors and energy and agriculture
Speaker 1: coming together which have pushed US inflation up to these
Speaker 1: astronomical levels. So let me ask you a very basic question,
Speaker 1: why is high inflation a problem other than things casting more.
Speaker 1: You can imagine a world where all prices and all
Speaker 1: wages go up quickly together, So all the prices in
Speaker 1: the economy and everybody's wage goes up ten percent every year,
Speaker 1: and it's kind of weird, and maybe every few years
Speaker 1: we need to drop a zero off the denomination of
Speaker 1: our bank notes. But because everything is moving in exactly
Speaker 1: the same pace, it's not really a big problem, and
Speaker 1: fortunately that's not how things play out when inflation takes off.
Speaker 1: Often you have inflation accelerating ahead of wages. Often you
Speaker 1: have different prices moving in different directions, and that creates
Speaker 1: a bunch of different problems. Imagine the household which is
Speaker 1: facing a teen percent increase in their grocery bills and
Speaker 1: their gas bills and their rent, but their wages are
Speaker 1: not keeping up. They're going to be suffering. Imagine the
Speaker 1: small business owner which is operating in a competitive market.
Speaker 1: They're facing competition from Starbucks or Amazon, so they can't
Speaker 1: raise their prices, but their workers are all leaving because
Speaker 1: they can get more wages elsewhere. That small business is
Speaker 1: going to have a problem. And these are the sort
Speaker 1: of reasons why economists think low and stable inflation is
Speaker 1: a kind of a fundamental good, the fundamental basis which
Speaker 1: is required to keep the economy growing. We've heard how
Speaker 1: wages are rising because employers have to pay more in
Speaker 1: order to retain and recruit people in a tight labor market,
Speaker 1: But those wages have not kept up with inflation. So
Speaker 1: how is it that so many people are sitting out
Speaker 1: of the labor market when prices are high? And wages,
Speaker 1: though higher, aren't keeping up. So when you have a
Speaker 1: really really big shock, and the COVID pandemic was a
Speaker 1: really really big shock, then you can get some big
Speaker 1: adjustments in the economy. And I think we're seeing those
Speaker 1: playing out in the labor market. And I'm not sure
Speaker 1: anyone has a kind of a perfect handle on what
Speaker 1: all the factors are and the magnitude of their impact
Speaker 1: and how long the impact is going to last. But
Speaker 1: I think you've got people reconsidering their priorities, people thinking,
Speaker 1: you know what, life short, I don't want to work
Speaker 1: so much. I want to spend more time with my family.
Speaker 1: You've got a reorganization of the economy. Firms which were
Speaker 1: kind of really successful pre COVID not so successful post COVID.
Speaker 1: Other firms which weren't doing so well before the pandemic
Speaker 1: now doing better. And that shift in the kind of
Speaker 1: the structure of the economy also means a shift in
Speaker 1: where workers are needed and what type of workers are needed.
Speaker 1: And then you've got specific factors like people being sick
Speaker 1: because of COVID, people suffering from long COVID, people deciding,
Speaker 1: you know what, I'm vulnerable. I'm the kind of person
Speaker 1: who gets sick easily and doesn't recover quickly. I don't
Speaker 1: want to risk going into the labor market right now
Speaker 1: and then other people just losing their jobs and finding
Speaker 1: it difficult to get back into the game. So I
Speaker 1: think all of these factors are at work. They're all
Speaker 1: restricting labor supply. And when you combine restrictions on labor
Speaker 1: supply with strong demand for workers, that's when you get
Speaker 1: a lot of pressure for wages to rise, and that
Speaker 1: contributes to the problem with inflation that we have right now.
Speaker 1: A lot of the things you're describing are happening in
Speaker 1: the US. Are we seeing the exact same thing happening
Speaker 1: elsewhere in the world? Eight point nine is the inflation
Speaker 1: right now for the Eurozone, we have higher than expected
Speaker 1: Japanese inflation with the first time inflation has hit double
Speaker 1: digits in forty years. Inflationary pressures are also moving beyond
Speaker 1: energy into food costs. So that framing that we used
Speaker 1: to understand what's happening in the United States inflation that
Speaker 1: comes partly from really tight labor markets pushing up wages,
Speaker 1: and partly from shocks to specific sectors like oil or semiconductors.
Speaker 1: That's also a useful frame for thinking about inflation globally.
Speaker 1: So if we turn to Europe, Europe's got really high inflation,
Speaker 1: higher than the United States right now, but it's coming
Speaker 1: from different sources. They don't have the tight labor markets
Speaker 1: pushing up wages in Europe. What they do have is
Speaker 1: really severe shocks to specific sectors, and of course is
Speaker 1: no mystery where that's coming from. It's Vladimir Putin and
Speaker 1: Russia's invasion of Ukraine and Russia turning off the gas
Speaker 1: to Europe, which is pushing energy prices up really high.
Speaker 1: A lot of the discussion we hear about inflation is
Speaker 1: how it's difficult to find workers. Why isn't there more
Speaker 1: discussion about how corporate profits are very high when some
Speaker 1: of those profits could, at least notionally be used to
Speaker 1: pay people a higher wage. This idea that louging corporations
Speaker 1: are a big contributor to the inflation that we have
Speaker 1: right now is an idea that's kind of percolating in
Speaker 1: the debate, and it's one you hear very often from
Speaker 1: the left side of the political spectrum. You hear it
Speaker 1: from Senator Elizabeth Warren, for example, attacking the problem of
Speaker 1: price gouging by saying, to giant corporations that have more
Speaker 1: than a billion dollars in profits, you're going to have
Speaker 1: to pay. And the argument goes something like this, corporate
Speaker 1: power is so concentrated now, the big corporations in agriculture,
Speaker 1: in energy, in technology, in retail, they own so much
Speaker 1: of the market that they're immune to competitive pressures. And
Speaker 1: what that means is that they can jack up prices
Speaker 1: without having other firms jump in and steal their market share.
Speaker 1: So the argument in favor of this view focuses on
Speaker 1: the market power of big corporations and how that's increased
Speaker 1: over time, and it also looks at things like the
Speaker 1: announcements by big companies. If you listen in on the
Speaker 1: earnings calls of big companies over the last few months,
Speaker 1: you hear chief executives who are positively gleeful about their
Speaker 1: capacity to raise prices and raise profits. The argument against
Speaker 1: the idea that concentration of market power is a big
Speaker 1: contributor to high inflation is basically, well, why now, market power?
Speaker 1: The enormous size of the big firms in agriculture and
Speaker 1: energy and retail and tech is not a new phenomenon.
Speaker 1: So why is it suddenly a big contributor to inflation
Speaker 1: when it hasn't been a big contributor to inflation in
Speaker 1: the past. One of the arguments, I guess I've heard
Speaker 1: is that companies are raising prices the inflation and using
Speaker 1: inflation as an excuse for raising prices. That's the liberal argument, right.
Speaker 1: The market power was there before, but what we're now
Speaker 1: seeing is big firms kind of seizing the moment, seizing
Speaker 1: the opportunity when all of these prices are rising to
Speaker 1: kind of gauge the consumer and boost their profits and
Speaker 1: add to problems for American households. And J Powell as
Speaker 1: he attempts to bring inflation under control. J Powe, of course,
Speaker 1: the chairman of the Federal Reserve, and we're going to
Speaker 1: talk about him in just a minute. So when you
Speaker 1: look at this argument on one side or the other
Speaker 1: of this, as an economist, what do you think are
Speaker 1: the biggest drivers of inflation? Is it on the labor side,
Speaker 1: is it on the private side, is it something else?
Speaker 1: I think there's been an evolution of factors. Right um.
Speaker 1: At the beginning of the pandemic, it was all about
Speaker 1: the shocks to specific sectors. It was the lack of semiconductors,
Speaker 1: which meant it was hard to produce new automobiles, and
Speaker 1: so automobile prices rose really high, and that pushed up inflation.
Speaker 1: But then we had the massive fiscal stimulus in the
Speaker 1: United States, and what that did was drove very very
Speaker 1: strong demand, and that then meant there was a kind
Speaker 1: of handoff in the drivers of inflation from shocks to
Speaker 1: specific actors like semiconductors, to the kind of inflation that
Speaker 1: we get when labor markets are tight and wages arising quickly.
Speaker 1: And then Rusha's invasion of Ukraine brought the industry specific
Speaker 1: shocks back into the picture. Russia's invasion of Ukraine pushed
Speaker 1: commodity prices higher, and that gave another lag to the
Speaker 1: inflation story. After the break, my conversation with Tom Orlick continues,
Speaker 1: I'd like to take this opportunity to speak directly to
Speaker 1: the American people. Inflation is much too high, and we
Speaker 1: understand the hardship it is causing, and we're moving expeditiously
Speaker 1: to bring it back down. We have both the tools
Speaker 1: we need and the resolve that it will take to
Speaker 1: restore price stability. On behalf of American families and businesses.
Speaker 1: Time you've spelled out where we are and how we
Speaker 1: got here, and now comes the big question, what do
Speaker 1: we do about it? How does inflation eventually get under control?
Speaker 1: So let's come back to our sort of initial framing
Speaker 1: of inflation as coming partly from shocks to labor markets,
Speaker 1: pushing up wages, and partly from shocks to specific sectors.
Speaker 1: Most of the tools which policy makers have for bringing
Speaker 1: inflation under control are focused on the first one of
Speaker 1: those drivers. Central banks, the Federal Reserve, the European Central
Speaker 1: Bank raise interest rates, that makes it more expensive to borrow.
Speaker 1: That chokes off demand in the economy, including demand for workers,
Speaker 1: and so wage gains start to come down or maybe
Speaker 1: even stagnate, and that overtime lowest price pressure. So that's
Speaker 1: the kind of big macro policy tool which economies have
Speaker 1: to fight inflation, and it's in operation right now. The
Speaker 1: Fed has already done a bunch of big rate hikes.
Speaker 1: There's some more still in the pipeline. How about the
Speaker 1: second driver of inflation, the inflation that comes from shocks
Speaker 1: to specific sectors. Well there, Unfortunately, the tools that policymakers
Speaker 1: have are much less comprehensive and much less powerful. So
Speaker 1: think about the shock from high energy prices. For example,
Speaker 1: President Biden can open the Strategic Petroleum Reserve and release
Speaker 1: a bit more energy, but the amount of petroleum in
Speaker 1: the Strategic Petroleum Reserve isn't that big relative to the
Speaker 1: size of global energy markets, so that doesn't do much.
Speaker 1: He can swallow his pride and get on the plane
Speaker 1: to Saudi Arabia and fist bump MBS and ask him
Speaker 1: to increase oil supply across the Crown Prince of Saudi
Speaker 1: hever you're talking about there, We're Biden visited and didn't
Speaker 1: get much. That trip. Whilst it cost Biden something in
Speaker 1: terms of diplomacy, didn't deliver much in terms of increasing
Speaker 1: energy production or bringing energy prices under control. Think about
Speaker 1: shortages in supply of semiconductors, big driver of inflation earlier
Speaker 1: in the pandemic. Governments basically don't have any tools to
Speaker 1: address that problem. In the United States, we think cooling
Speaker 1: the economy is going to mean the FED has to
Speaker 1: take interest rates all the way up to five. Cooling
Speaker 1: the economy is a kind of polite euphemism, and what
Speaker 1: we actually mean when we say cooling the economy is
Speaker 1: pushing people into unemployment. Our US economic team thinks that
Speaker 1: more than two million people are going to join the
Speaker 1: ranks of the unemployed in the United States in the
Speaker 1: next two years, directly as a consequence of the Fed's
Speaker 1: campaign to bring inflation back to its two percent target.
Speaker 1: Is there a scenario in which the Federal Reserve could
Speaker 1: bring down inflation in a way that doesn't require so
Speaker 1: many workers to be fired. There's a kind of an
Speaker 1: optimistic view on this. It's kind of sometimes referred to
Speaker 1: as immaculate disinflation, disinflation which takes place without kind of
Speaker 1: hurting anybody. The idea goes something like this, the inflation
Speaker 1: that we've got in the last two years is a
Speaker 1: consequence of a massive and unpredictable shock to the economy,
Speaker 1: the COVID crisis, the war in Ukraine. The COVID crisis
Speaker 1: is already kind of receding into memory here in the
Speaker 1: United States. The war in Ukraine continues, but without the
Speaker 1: kind of catastrophic impacts on global oil prices that we
Speaker 1: saw in the first part of two So perhaps the
Speaker 1: dislocations which caused high inflation will disappear, just as quickly
Speaker 1: as they arrived, and the FED will be able to
Speaker 1: get prices back to its two percent target without having
Speaker 1: to raise interest rates too much further and without having
Speaker 1: to push too many people into unemployment. That's the kind
Speaker 1: of the underpinning of the hope for the sort of
Speaker 1: soft landing which FED chair J Powell says he's aiming for,
Speaker 1: but acknowledges is going to be difficult to stick. How
Speaker 1: likely do you think it is that that happens. Our
Speaker 1: US team has a recession in the second half of
Speaker 1: three as their base case, so we would see a
Speaker 1: soft landing and a limited rise in unemployment as a
Speaker 1: positive risk scenario. Not the most likely thing to happen,
Speaker 1: and it is the same true in Europe. The situation
Speaker 1: in Europe is a bit different because so much of
Speaker 1: inflation in Europe has come from the surge in energy prices.
Speaker 1: The capacity of the European Central Bank to do anything
Speaker 1: about it is reduced. The European Central Bank hikes interest rates,
Speaker 1: that impacts labor markets and wages at the margin that
Speaker 1: impact energy prices. But really what's determined energy prices is
Speaker 1: Vladimir Putin and his pipeline and his decision on how
Speaker 1: much gas to send to Europe. Now, what that means
Speaker 1: is that whilst we expect the European Central Bank to
Speaker 1: hike interest rates, we don't expect them to go as
Speaker 1: far as the federal reserve. Labor markets in Europe also
Speaker 1: work differently to labor labor markets in the US. In
Speaker 1: the US we have kind of read in tooth and
Speaker 1: claw capitalism. The government doesn't want to sort of impede
Speaker 1: business capacity to hire or fire. And what that means
Speaker 1: is that as the economy goes up and down, unemployment
Speaker 1: actually moves quite a lot. In Europe, they have more
Speaker 1: of a kind of a social contract, and what that
Speaker 1: means is that there's labor market regulations which make it
Speaker 1: harder to fire people in the bad times. Of course,
Speaker 1: the downside of that is businesses are also more reluctant
Speaker 1: to hire them in the good times, and so the
Speaker 1: economy goes up and down with a smaller impact on unemployment.
Speaker 1: We haven't yet touched on other very big academies in Asia,
Speaker 1: in particular China. How is this impacting China now? China
Speaker 1: right now doesn't actually have a problem with too much
Speaker 1: demand and too much inflation. They have the reverse problem.
Speaker 1: They have a problem with too little demand and their
Speaker 1: producer prices that's a kind of measure of inflation in
Speaker 1: the industrial part of the economy, not the consumer part
Speaker 1: of the economy, are actually falling. That's a reflection of
Speaker 1: their sticking with COVID zero, which is hammering their growth,
Speaker 1: and a big downturn which is underway in their property sector. Now,
Speaker 1: for the rest of the world, this is actually providing
Speaker 1: a bit of an assist. Think about a world where
Speaker 1: China is firing on all cylinders and buying huge amounts
Speaker 1: of energy and buying huge amounts of corn and soybeans.
Speaker 1: That's a world where commodity prices are much higher than
Speaker 1: they are right now, and the challenge for the FED
Speaker 1: and the ECB and bringing inflation under control is harder.
Speaker 1: So right now, weakness in China giving the best of
Speaker 1: the world a bit of an assist on their inflation problem.
Speaker 1: A question looking into three is, well, what happens when
Speaker 1: China opens up At some point, we think in the
Speaker 1: second quarter of next year, China is gonna start reducing
Speaker 1: its COVID zero restrictions. The economy is going to grow
Speaker 1: more quickly. People are going to be doing more traveling around.
Speaker 1: It's going to drive stronger global commodity prices for your
Speaker 1: own Powell at the Federal Reserve and Christine Lagarde at
Speaker 1: the European Central Bank. What that could mean is that
Speaker 1: in the middle of three, at exactly the moment where
Speaker 1: they're kind of what mopping their brow and prepared to
Speaker 1: take a well deserved break after bringing inflation under control,
Speaker 1: China reopening actually lights of fire under prices again. And
Speaker 1: it's that kind of geopolitical dynamic and the potential for
Speaker 1: shocks happening in China to impact the United States and
Speaker 1: shocks from the United States to impact the rest of
Speaker 1: the world. That's going to be the focus of discussion
Speaker 1: at the Bloomberg New Economy Forum in Singapore this week,
Speaker 1: and you can see all of the coverage of the
Speaker 1: Bloomberg New Economy Forum where government leaders corporate executives are
Speaker 1: gathering to discuss these big issues at Bloomberg dot com.
Speaker 1: Tom or Look. Always a pleasure to talk to you.
Speaker 1: Thanks for taking the time. Great to be here, was
Speaker 1: thanks for having me on the show. Thanks for listening
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