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Speaker 1: Bloombo Business News twenty four hours a day at Bloomberg

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Speaker 1: dot Com, the Radio, plus mobile LAP and on your radio.

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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Speaker 1: I'm Catherine Cowdery. Stocks are climbing and light pre holiday trading,

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Speaker 1: with the SMP five funded on course for its biggest

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Speaker 1: weekly game since March. There's growing confidence that the economy

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Speaker 1: is strengthening enough to handle higher borrowing costses early as

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Speaker 1: this summer. Equities trim gains after Federal Reserve here. Janet

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Speaker 1: Yellen signaled a willingness to raise interest rates. Speaking at

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Speaker 1: Harvard University, she said she expects the economy to improve

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Speaker 1: after a week first quarter, and a rate increase would

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Speaker 1: probably be appropriate incoming months. We check the markets every

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Speaker 1: fifteen minutes throughout the trading day. Dow Industrial leverage up

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Speaker 1: twelve points, trading at seventeen thousand, eight hundred thirty nine.

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Speaker 1: S and p f i've funded up four points an

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Speaker 1: eighth of a percent at two thousand ninety three. The

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Speaker 1: Nazak is higher by twenty points, a gain of four

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Speaker 1: tens of a percent, trading at one West Texas Intermediate

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Speaker 1: crude oil down twenty two cents a barrel, four tens

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Speaker 1: of a percent at s about gold down ten dollars

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Speaker 1: fifty cents announced at twelve twelve thirty the tenure Treasury

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Speaker 1: down six thirty seconds with the yield of one And

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Speaker 1: that's a Bloomberg Business flash stock with Kathleen Hay on

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Speaker 1: Bloomberg Radio. Another interest rate increase will be appropriate in

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Speaker 1: coming months. That's what fed A Reserve chair Janet Gallen

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Speaker 1: said today at a really delightful one on one conversation

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Speaker 1: with Harvard economist Gregory Manque. She was there for Radcliffe Day.

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Speaker 1: She received the Radcliff Medal, and it's for people who

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Speaker 1: have made a big contribution to society in their field. Now,

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Speaker 1: what she contributed today in the market is is a

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Speaker 1: little bit of a pairing of the games and stocks

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Speaker 1: which really weren't that much higher anyway, and a little

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Speaker 1: bit of a selloff in bonds. Was this warranted? Did

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Speaker 1: Janet Yellen say anything that we wouldn't have expected her

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Speaker 1: to say? Well, let's ask somebody who was there covering

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Speaker 1: this for Bloomberg News are owned Christopher Condon. He's part

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Speaker 1: of our Federal Reserve team based in Washington, d c. So, Chris,

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Speaker 1: you are covering the day in and day out, how

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Speaker 1: would you characterize her remarks today, Hello, Kathleen. Well, I

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Speaker 1: would not say that we heard anything from her that

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Speaker 1: was markedly different from what others on the committee has

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Speaker 1: said in recent day, recent days, or week. But it's

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Speaker 1: entirely different coming from the chair. It's who she is

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Speaker 1: in addition to what exactly she says, and and and

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Speaker 1: so it is meaningful when you care Janet Yell and

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Speaker 1: say that it will probably be appropriate in the coming

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Speaker 1: months to raise interest rates. Chris, and wondering if you

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Speaker 1: could comment about other aspects of the conversation having to

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Speaker 1: do not only with her experience, but the economists that

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Speaker 1: have mentored her and her role at the Federal Reserve. Well,

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Speaker 1: you know something that did come out, uhuh, and that

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Speaker 1: come out when I and Rich Miller profiled her, is

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Speaker 1: that a very important mentor Janet Yellen was the great

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Speaker 1: economist Tobin, whom she studied under Yale, And she talked

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Speaker 1: about his sort of uh inclusion of moral and social

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Speaker 1: concepts in his economic thinking. And that I think it

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Speaker 1: tells us a lot or confirms a lot of what

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Speaker 1: we feel about Janet Yellen when she when she does

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Speaker 1: her research, when she makes policy, she also tries to

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Speaker 1: apply what she called a moral compass, the moral compass

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Speaker 1: that that Tobin applied. So I think that tells you

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Speaker 1: something about Janet Allen as well. Oh, and how she

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Speaker 1: praised Ben Bernanke for his masterful work to be innovative

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Speaker 1: and and to save us from credit drawing up and

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Speaker 1: going into another great recession. Although I think she said

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Speaker 1: and she meant to say into into another great depression

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Speaker 1: when she is when she was praising Beam bern Ake, Yeah,

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Speaker 1: I thought they were going to give Ben bern apiu metal. Well.

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Speaker 1: But but Chris, uh, you know, if you wanted to

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Speaker 1: be nitpickyes, I was being It seems to me that, uh,

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Speaker 1: maybe the reason we had a little bit of move

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Speaker 1: in the market is people didn't realize that Greg manqu

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Speaker 1: would be so direct with her and ask her about

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Speaker 1: current economic conditions and about the meetings, and so they're

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Speaker 1: surprised that she said anything. But she said another interest

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Speaker 1: rate increase, another rate hike, I think she said will

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Speaker 1: be appropriate over the next few months. Interesting that she

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Speaker 1: didn't say hikes. She said a hike right right right?

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Speaker 1: That is that is potentially meaningful. It's very difficult to

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Speaker 1: you know, we're doing a bit of a bit of

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Speaker 1: crystal ball work. You know, what does she mean by

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Speaker 1: this word or that word? Very difficult to tease out

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Speaker 1: of that anything really explicit. But you're right, she didn't

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Speaker 1: talk about the plural. She talked about singular. But but

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Speaker 1: she she used the word in the coming months. I

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Speaker 1: don't think any buddy would expect multiple increases in the

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Speaker 1: coming months unless you include that expending out to December. Um,

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Speaker 1: that could be surprised. I mean, could the could the

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Speaker 1: FED chair be maybe not in step with others who

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Speaker 1: are urging a rate hike sooner rather later, even as

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Speaker 1: early as June. UM. I think people are entirely unsure

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Speaker 1: about how you know, we heard from a lot of

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Speaker 1: FED presidents recently and and J Paula, Governor John pol yesterday. UM,

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Speaker 1: and there was this question mark, how close are they

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Speaker 1: to the chairs thinking? UM. I think you know, she

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Speaker 1: did signal something close to that today, But it was

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Speaker 1: very much a conditional expression of wanting to raise rights,

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Speaker 1: conditional on continued improvement in the labor market, continued signs

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Speaker 1: of growth, even uh continued stability, and oil and the dollars.

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Speaker 1: So there are a lot of caveats there that could

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Speaker 1: make one thing. There is space between jan and Allen

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Speaker 1: and some of the other effllency members who have spoken

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Speaker 1: somewhat hawkishly recently. CHRISI. She also spoke about a three

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Speaker 1: to five year time horizon and the low level of

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Speaker 1: interest rates historically. What if you can comment on that, Well,

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Speaker 1: it's true for many reasons, what people see as the

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Speaker 1: what they call the natural rate of interest or the

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Speaker 1: neutral interest rate is historically low. Um and even once

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Speaker 1: as said, condums like to say, once we get back

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Speaker 1: to normal, at normal will be quite a bit lower,

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Speaker 1: perhaps only uh something like two and a half three percent,

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Speaker 1: as opposed to historically uh well above three. And that

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Speaker 1: speaks to the lower levels of productivity we're seeing in

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Speaker 1: our economy and other factors. So it's she she does

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Speaker 1: also think along those lines as well. Thank you very

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Speaker 1: much for spending time with us. Chris Condon is Bloomberg's

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Speaker 1: Federal Reserve reporter. He was speaking about Federal Reserve Chair

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Speaker 1: Janet Yellen and her conversation at the Radcliffe Institute for

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Speaker 1: Advanced Study at Harvard University. Janet Yellen reiterating that she

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Speaker 1: believes rates should be raised slowly, and she said that

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Speaker 1: a rate increase would be appropriate probably in the coming months,

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Speaker 1: if the economy and labor market continued to strengthen. You're

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Speaker 1: listening to Taking Stock. I'm pim Fox, my co host

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Speaker 1: Kathleen Hayes, and this is Bloomberg Radio. GDP grew less

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Speaker 1: than one percent in the first quarter. Is that fast

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Speaker 1: enough for Janet Yellen to get on board with a

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Speaker 1: rate huck in June or July. That's what we're gonna

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Speaker 1: find out, coming up now on Bloomberg Radio.