>> welcome to bloomberg markets. wall street braces for the fed and for fed chair powell as it looks for more clues on the central banks timing for rate cuts. get a quick check of the markets. there is a whole lot of nothing. take a look at the s&p 500 should pretty much unchanged. same story if you could on the list. nasdaq 100 unchanged. philadelphia semiconductor index pretty much unchanged. maybe down a 10th of a percent. you take a look at the bond market, it is the same story. the two year treasury yield.

this will be the thing to watch in two hours right now, nothing going on. we have some mid-day movers ahead of the fed. watching shares of boeing after it cfo said the cash outflow will reach 4 billion to $4.5 billion in the first quarter. that is due to regulatory scrutiny and slowed output of its jetliners. that has taken a toll on its finances. more on that in a moment. shares of caring plunging after sales have fallen 20% in the first quarter and that is with the asia-pacific region in a decline. shares currently off 4%. let's talk about bitcoin. it is at a two week low. we saw its first net outflow for the group of u.s. listed spot etf's. as the total, the group saw $300 million in outflows yesterday. let's get back to the fed. the story of the day.

goldman sachs chief economist expects a rate cut in june. >> inflation is much lower. it is heading down. the year on year rate is still heading down. the labor market is much closer to balance. inflation expectations have continued to come down. they have largely normalized. all the things fed officials were worried about a year and a half ago you would get on anchoring of inflation expectations. you would get a wage price spiral. a lot of those things have moved into the rearview mirror. katie: let's bring in bloomberg economics u.s. economist stuart hall. this is a special meeting. with the rate decision and press conference, we get an updated sep and an updated dot plot. what should we be looking for? >> we are expecting the dot plot

to be relatively unchanged. still expecting 75 basis points of cuts. still expecting the median to stay around 4.1, 4.2% and course -- and course t -- core cpe to stay around the 2.4, 2.5%. the real question is what is going to happen in the long run neutral rate. the long. one federal funds rate estimates of the natural rate have been rising. we could see that rise as well. katie: we have put much figured out where terminal of this rate hiking cycle is where the neutral rate is, it is a difficult question. it's talk about what the fed would need to see to cut rates. jerome powell has expressed the desire to cut rates but what do they actually need to see to fire the trigger? stuart: lower monthly inflation prints. that is all it is going to take. markets overreacted to the low headline inflation prints we saw

at the end of 2023. and reacted to the hot inflation prints we sell to start the year. a lot of the heavy inflation we have gotten has been things like portfolio management services or health services. things that tend to be relatively seasonal. when we start resuming the disinflation trajectory we have been on, that will be enough to get a june rate cut. katie: you know better than most the real action is at 2:30 p.m. when we get the press conference. last time we heard from powell was in front of congress. he sounded pretty dovish. what tone do you think jerome powell will strike today? >> he is going to come off as similarly dovish. the goal is to start inching toward rate cuts. the goal is to start priming markets for expecting a tapering of qt. we are going to get details about qt and details about what it might take to start rate cuts during the press conference. katie: it is not just the dots. we also have the balance sheet.

bloomberg economics economist stuart paul. let's keep this conversation going with santander chief economist stephen stanley joining us. tell us about what your most adjusted to see. we have the actual decision. we have the statement. we have the summary of economic projections. we get the press conference. what are you going to be most paying attention to? >> lots to digest. for me, it is the 2024 media.. -- media dot. the fed was projecting three rate cuts as of december. there is some debate in the markets about whether they will move that down to two. i will lean toward them staying at three. but there is certainly a risk of two. that will set the stage for the financial markets. we were at an interesting point because for the first time in many months the markets are more or less on the same page as the

fed. the markets are pricing in 75 basis points of cuts for the year. there is not a huge dissidents as there has been at prior meetings. be interesting to see what are the fed wants to preserve the temporary agreement or if they are looking to scale back expectations of rate cuts. katie: you talk about the rare harmony between markets and the fed. i get a little nervous because that sounds like a recipe for volatility. when it comes to the possible disappointment, the possible surprise, where do you think it might come from from the market's perspective? stephen: that would be the big one. chairman powell has been dovish the last couple of fomc meetings. we have had huge rallies in expectations of rate cuts. there is a presumption he is going to be somewhat dovish in town. . we have had some that inflation data to start the year.

that would be one possible surprise is if there is a significant tone change and i guess what we would call a hawkish direction later than sooner on rick cuts. katie: later rather than sooner. how much later? the bigger question is there is a month between when the market is expecting them to lift off versus when they actually lift off? stephen: it matters to traders and investors. as far as how much later, my own view has been for a while the fed would be on hold for most of the year. the inflation data are going to prove stickier than most people expect. the real economy is doing fine. there's no urgency to get rates down. i don't see the first rate cut coming until november. i don't think that is where the fed is. they will have to be convinced of that. a few more months of inflation data close to what we saw in

january and february would push them in that direction. katie: that is an outlier. when i said lift off, i met the opposite. lift down. the first rate cut coming in november, you are out of consensus. is that a view inflation is going to stay sticky? those last legs to 2% are going to take longer than we expect? stephen: stuart framed it nicely. a lot of the low court inflation readings we saw in the second half of last year exaggerated the progress that was being made. to some degree, may be there early 2024 numbers are moving in the opposite direction where they are exaggerating the degree of acceleration. the underlying trend is considerably higher than 2%. it is probably above three. i think it will come down over

time. . it is only going to come down gradually. the services components are proving to be stubborn. they typically don't swing very rapidly. i think it is going to take a while intel the fed reaches the threshold of greater confidence that was rolled out in the january fomc statement. katie: i do want to talk about sequencing. you brought up the balance sheet. qt is slowing and tapering. what do think happens first? as the first rate cut a necessary ingredient for qt to actually start? stephen: not necessarily. chairman powell and others at the fed have emphasized those two things are running on separate tracks. as long as the fed is cutting rates because inflation is coming down but the economy is still ok, the soft landing scenario most everybody has in mind including the fed, i don't think it necessarily holds they would have to make a big shift on the balance sheet strategy

the minute they begin to cut rates. chairman powell has noted that several times at press conferences over the last year or so. my own view is the fed's decisions on the balance sheet be determined by what is going on in the banking sector in terms of bank reserves and the rest. it looks to me like the fed still has a long way to go to get the balance sheet back to the proper level. i think qt continues for a bit longer than most of the markets are anticipating. katie: we are talking about the fed given we are less than two hours away from the fed decision. let's look backwards for a moment. we have the bank of japan, and end of an era. the first interest rate hike in 15 years. talk to us about the significance. it was a long time coming. stephen: thinking of it as an

economist certainly, what the bank of japan executed over the last number of years, it was an experiment in being extremely aggressive. eventually we have begun to a point where they -- we have gotten to a point where they feel come triple taking rates above zero but it is not clear to me the steps that were taken way back when many years ago had a strong impact. it feels like it was more just as happened here and elsewhere that the pandemic led to a jump in inflation and that finally shook economies out of the price doldrums had been in certainly in japan. economists will look back on this. write a lot of papers on the efficacy of negative rates and some of the other things the bank of japan did. as things stand, it does not look like there is a magic bullet when an economy is as

stuck as japan was with chronic deflation and low rates. katie: some good food for thought to end on. when it comes to japanese inflation, was it the pandemic or policies? we are going to have to leave it there. santander chief economist stephen stanley. as we focus on central banks, we heard earlier from the ecb president christine lagarde. she outlined what she needs to see to adjust the bank's right path. >> the essential question is what do we need to see? what do they need to see is the question i occasionally see. what do we need to see to become sufficiently confident to start dialing back our restrictive policy stance? put simply, we need to move further along the disinflationary path. ♪

katie: this is bloomberg markets. boeing is forecasting a massive cash drain for the first quarter. the aircraft manufacturing more regulatory scrutiny and slower output of its 737 max following the january incident where a piece of fuselage known as a

door plug blew out in midair. joining us with more from princeton, new jersey is a senior aerospace defense and airline analyst for bloomberg intelligence. you take a look at boeing's stock today. it seems like bad news but the stock is up 2.5%. walk us through this reaction relative to what we heard from this morning. >> i think a lot of that reaction is the cfo said the first quarter cash turn was between four and $4.5 billion to he indicated by year end they would be positive on free cash flow. that gave markets some comfort this pain is not going to last too long. there were not a lot of other details you could put your hat on and look to to see how that trajectory is going to run. the free cash flow burn sounds like boeing thinks they will get things improved after a rough

first quarter by middle of the year. katie: the free cash flow is definitely something investors are focusing on after the massive year-to-date drop the stock has seen. what was also interesting, when it comes to their possible acquisition of spirit air systems, it seems the cash burn i the first quarter is not expected to derail that. george: the cfo did talk about the purchase of spirit aerosystems. he talked positively about it. it sounds like it must be pretty far down the road. sounds like they put some debt to getting that done. that kept bondholders happy as they look to go ahead and buy spirit aerosystems. katie: as judged by the equity and bond markets, a good performance from the cfo. let's talk about the ripple effects from what is going on at

boeing. what this means for airlines who need new jets. what does this mean for them? george: he talked a lot about talking to customers but he did not give a lot of timeline on how he thought build rates would progress through this year and into the out years. i guess they are trying to keep customers happy to a certain degree. it still looks like in the conversations but it still looks like if you are an airline that was counting on an airplane this summer that was going to get delivered in the first half, you are probably not going to get it. 450% of the folks are going to get in airplane. there may be a bit of a deficiency this summer with lift given to boeing problems and raytheon problems. a lot of a320's are coming out of service for inspections. we think that could provide some firming to summer ticket prices. we are watge thgs closely.

it seems like the market especially for budget seats is over capacity. there might be too much budget seats in the marketplace to get fairs up to the level they are going to make things super profitable in the airline business. lots of them have indicated they will have losses in one q. . we are watching demand for summer and watching this lack of airplanes to see what plays out better to figure out if there is a tightness in the market and better pricing in the summer. katie: i have invented plenty of new words on live television so i'm going to write that one down too. i want to talk about the competitive went scape. it is striking to me. you look at the your today performance of boeing versus airbus. stocks going in completely opposite directions. these airlines order these aircraft years and years in advance. what does this mean for boeing's long-term competitive footing?

>> that is why it is imperative boeing gets their house in order right now. wes talked about the fact if you came in for a 737 or 787 today, would still be out in 2028 or so before they could get you in airplane. those two competitive products are out even further at airbus. it is really difficult right now to switch manufacturers. if you are flying boeing. to switch to airbus because of the size of the backlog. that is the saving grace for boeing. they want to make sure they get their house in order so they don't lose customers like united which looks like they will lose some portion. those big airlines that have big networks that fly dual fleets. it is easier for them to switch. we are seeing some of them switch. boeing needs to get things fixed so they stem any of those losses

and keep their market share. 40-ish, 45%-ish over the medium-term. katie: really appreciate your insight. our thanks to george ferguson of bloomberg intelligence. still ahead, when reddit starts trading, it's fate will rest in familiar hands. its users. this is bloomberg. ♪ ♪♪ hello, mia. are you ready to meet your demise? man, we really need to upgrade your trash talk. ♪♪ nice shot... shot... taker. who programmed you?! i'll see you tomorrow. the future isn't scary, not investing in it is.

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katie: this is bloomberg markets. bloomberg news breaking the news today reddit is that to price its ipo in the top range or above. company has reserved 8% of its long-awaited public offering for its most prolific users, a sign a could quickly turn into a so-called meme stock. bailey lipschultz has been following this closely. he joins me sitting to my left.

let's talk about the timeline. how are we expecting the cadence of the next 24 hours or so to go? bailey: reddit will price all things going as planned after the bell today. that could be at 4:30, 8:30. astera labs yesterday priced in the 8:00 our. it could be going late into the night especially if you are expecting it to price above the range. bankers want to talk with advisors about where they want this to go to investors. tomorrow morning, this is going to be a nice stock. we will get indications on the stock exchange floor in the 10:00 hour. we will get expectation of where it could open up and trading is up to the dmm, morgan stanley, when that opens. typically have seen these open in the 12:00 to noon window. trying to time that pop as much as possible.

katie: we're going to be spending a lot of time tomorrow given i am anchoring both of those hours. that is helpful context should talk about the bloomberg news exclusive from this morning that reddit and selling shareholders are guiding they could price at the top end of the range. that is surprising. bailey: when we saw this deal hitting the road 10 days ago, there was a lot of chatter around whether or not that potential $6.4 billion valuation at the top range would be validated. we have seen a number of analysts bloomberg intelligence talking about a $10 billion valuation. trying to get investors on the same page as the company while leaving room for the opening day pop is the calculus or the ark the bankers behind the scenes are trying to find. that is something those conversations likely they will have a call after the close today trying to get that number right. katie: talk to us about the importance of this. theoretically a bellwhether of

sorts for other ipos in the pipeline should bailey: every deal is idiosyncratic but every deal matters. you want to see deals pricing well at the top of the range if not above. it is a good sign. opening day pop would be something a lot of analysts, strategists and companies on the sidelines will be closely watching. we saw that happening with arm. that drew the likes of clay view, instacart and birkenstock off the sidelines. this could be alongside astera labs, two stocks to watch everyone is closely anticipating. katie: thank you so much. as we drumbeat and count down to the reddit ipo, could be an interesting and fun 24 hours. coming up, earl davis from bmo on his fed cut expectations and expectations for the fed's $7.5 trillion balance sheet. that conversation up next. this is bloomberg. ♪

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katie: welcome to bluebird markets. let's take a quick check of these markets. there is absolutely nothing happening behind me. take a look at the s&p 500, take a look at big tech, nasdaq 100 just up a hair or so. it more action if you look at the semiconductor names. stocks lower by a 10th of a percent. take a look at the bond market. very quiet and that is because the big action item is in 90 minutes time. take a look at the two year treasury yield, lower by almost

one basis point. we do have some movement at the individual name level. if you take a look at the midday moves in the stock market, we have chipotle shares surging after the board proposed a 50 to one stock split. though be the first split in the 30 year history. a vote is scheduled for early june. stock is up 13,000% since its ipo. about 30% so far in 2024. shares of top of callaway soaring following the company exploring a sale of its equipment making arm. it could be valued at $3 billion. we also have equal next shares. bloomberg -- and and berg alleged-- killing a quote ai pipedream should they did not immediately respond to a request for comment. outside of the equity market we are talking about bond traders

on this fed day. they are stepping up short bets against treasuries and buying derivatives to protect against a selloff. was mccormick has been following the bond market and the balance sheet of the fed closely. that is where i want to start with the balance sheet. we know the fed has been discussing the future. what are we expecting to hear? liz: i think one thing everybody agrees on is the talks they are having yesterday and today will be in earnest, in depth on qt which if they don't make any official announcement we will hear more about that in the minutes. there are widespread opinions with the majority saying it is not going to be announced at this meeting. the fed is saying we are slowing the pace of qt. they discussed it to their are a few outliers that say it could be announced today and start as soon as may. more are saying it will be announced in june. the market, there are so many

moving parts and that is one of them. what to they have to say about qt that does not come in any statement? i'm sure chairman powell is going to be asked about it. katie: talk about the other thing the market cares about and that is right cuts. i'm curious to see what you are hearing from your sources about the sequencing. do we need to see the first rate cut before we can see the qt taper start? liz: that was the old school fed. they have informed us through the last year or so this time is different. like in the past we thought -- because they said we don't want these two tools seemingly going in the opposite direction. now they say qt and the balance sheet runoff is more in the background. there is a sense even if they start cutting, they can continue that. they do want to get a smaller balance sheet that gives them more firepower in the future if they had to restart and do quantitative easing.

i think we are comfortable with that. it is likely the fed will be cutting rates. qt may be tapered but it is not done at that point. katie: i was speaking with stephen stanley from santander 30 minutes ago and he was talking about this where harmony between the bond markets and what the fed has signaled to this point. what are the expectations with 90 minutes to go until we get the statement? liz: you know that took a lot of beating down, this harmony. traders and the derivatives were struggling over their skis so many times and now they are in line with a little less than the three-quarter point cuts the december dot plot showed for this year. the big question will be what does the dot plot show? if it stays at 75, does the market go further over it skis? you see traders pricing in d, 90 basis point cuts or have they learned their lesson and that is

an anchor? there are so many moving parts. they could go to two cuts this year. they could move one to next year or not. we are going to be deciphering that dot plot our folks in d.c. put out quickly on the system and see where changes came if they did. and looking at the long run dot. the average has been creeping higher. you have talked about a lot of former officials and folks saying the long run rate is higher because things have changed. we will be watching that one as well. it katie: took a beat down but we finally are on the same page. liz mccormick. thanks so much. as we have been mentioning, less than 90 minutes from now, the fomc decision is coming. as we count you down, let's bring in earl davis. he is be about global asset management head of fixed income. we are talking about this rare harmony between the markets and the fed but bloomberg reporting showing you look at bond traders

and they are stepping up short bets against treasury. they are buying derivatives to protect themselves against the possibility of a selloff in the wake of this fed meeting. how much of a risk is it we get a hawkish jerome powell today? earl: i think it is an extremely low risk. the reason i think it is an extremely low risk. the fed has indicated since the beginning of the year they want to ease. the data has not allowed them to ease. they want to maintain the optionality. most likely in the june or july meeting. any adjustments to the dots or what they say publicly will come in the june meeting because i think september is off limits as the starting of the easing cycle. . that goes back to our viewers. we still think our best case is eases. we move that to q4 after the election. we think we could see 50 to 75 basis points. katie: it is interesting how quickly expectations have

shifted. it's talk about why the fed wants to -- let's talk about why the fed wants to ease. if the data does not show they should be easing, why is there still that desire to cut rates? earl: i think the desire stems from how mature the business cycle is. canada is a good canary in the coal mine to what is happening behind the scenes with the consumers. we are stating to see a breakdown behind the scenes. the only difference and the big difference why it could overwhelm that is the deficit. that is a significant amount of stimulus going into the economy. . that is why the economy is so resilient. that is why we continue to see strong growth numbers that could overwhelm the general breakdown behind the scenes. katie: canada speaks and the world listens. let's bring the conversation to the bond market. you and i spoke in mid-december. you said you were shorting two your treasuries. you take a look at what two year

treasury yields have done since then and they are 20 to 30 basis points higher. how are you feeling about where the level of yields particularly at the front end are right now? earl:earl: there is room for a selloff because we are still discounting eases starting in the summer. june or july. our expectation is we are coming close to a buying area. the trigger for us to start buying two-year bonds is when there is less than a 50 basis points of cuts discounted for 2024. we are not too far away from that. you get another 20 basis point selloff when we spoke we were around for 20. we are in the 460, 470 level. above for 75, we start to get interested pick the closer we get to 5% on two year bond yields more we will buy. we like them even more at 5% . still katie: some daylight to go before we reach for 75.

let's talk about a tray that seems to be breaking everyone's heart and that is the yield curve steepen or should seemed like one of the no-brainer trains heading into last year and this year as well. it has not materialized. talk us through the dynamics. earl: there is a lot of dynamics including there were so many people in the trade that when the market did get beat down from 420 to 470 and 460. they had to buy back the long end. that has kept it very big. 10 year bonds are right in the middle of the range. we think the steepener works but it is going to be a second half of the your story. the reason why we think it is going to work, that is when we get closer to eases. we think inflation is going to

tick up higher. katie: let's turn our attention to turn -- attention to the credit market. things look actually tight. if you take a look at high-yield bond spreads, they closed below 300 basis points for the first time in two years. as we head into the fed decision, does that look like complacency to you? earl: it totally does. . it looks like more than complacency. it looks like euphoria to we are in a mature business cycle looking closer to the end. the spreads don't adequately reward individuals for owning them and high-yield particularly. we are getting close to going underweight credit if we get more euphoria in the market. the reason we are here is there was so much cash on the cash line. we saw how many trillions were in money market accounts.

as long as there is relative stability in the market, people have to put the cash to work. that will continue until the fed changes their messaging which we don't expect until june or july. we do expect credit spreads to remain tight. we are moving to safer credits because we are a fragile level in credit that can reverse quickly. we don't see any catalyst in the immediate future to reverse those. it katie: is an up in quality world especially in you take a look at the credit markets. always great to speak with you. coming up, intel secures the biggest brands from the 2022 chips and signs act. the stock of the hour up next. ♪

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katie: this is bloomberg markets. time for our stock of the hour and we are watching intel after winning $20 billion in grants from the u.s. to help fund an expansion of its on my conductor factories. it is the first company to lend money from the 2022 chips and signs act. president biden will address the deal this afternoon in arizona. let's discuss with you any king. $20 billion in grants. that sounds like a lot of money but is it enough? >> that is a very good question. last night we spoke with the ceo ahead of this and he said i would've liked more if i'm honest. i think i got an acceptable amount, negotiations went well but more would have been better. . the way to contextualize this is one factory costs about $20

billion. companies like intel and competitors are spending $30 billion a year. this 20 billion over a number of years is nice but it is not what it costs to be in this business. it is not corporate welfare. katie: it is great perspective. you think about the fact the u.s. has lost its chip manufacturing over the course of decades. when it comes to reversing the trend, it sounds like it is not only going to take a lot of money but a lot of time. ian: exactly. there are multiple cycles. it takes a couple years to build a factory, get it up and running. gelsinger said himself he was going to need a chips act too if we are serious about reversing this trend we have seen about migration of manufacturing to east asia. katie: our thanks to ian king. we are going to turn to the fed impact of the consumer and services industry with caroline stein. that conversation coming up

next. this is bloomberg. ♪

katie: this is bloomberg markets. consumers may be willing to spend more as inflation subsides and the federal reserve impact on the economy takes effect. let's discuss the impact on the services sector. i'm thrilled to say we bring in caroline styn, founder of the independente restaurant coalition. you've made the case in the past you would like the fed to stop raising rates, start cutting rates. walk us through that view. >> we in the restaurant industry feel the impact of the fed choices because we are dealing with consumers. we are dealing with consumer

confidence. people have to feel like they have the ability to go out and dine and spend money in restaurants. when debt payments are higher, when they are not seeing that relief, it ends up effecting us on our side of the water. we see reservations go down. there is already such a pushback because our prices have gone up so much. our ingredient prices have gone up. the more the psychology of the consumer is affected by interest rates, the more we see the decline in our sales. it is very basic. we don't see that positive -- all of the positive news about the economy when we are on main street. katie:katie: it is an interesting dynamic. we speak about the fed's choices. i find that interesting since they were responding to inflation but it sounds like what you were saying is the medicine in this case rate cuts is potentially more painful than the disease itself. caroline: we feel that 100%.

all throughout los angeles. we have been dealing in l.a. with the impact of the strikes from last year that killed a lot of our business. still recovering from covid. trying to dig out from that should all of these setbacks keep us from finding the full recovery. it is definitely -- it has put a lot of pressure on our industry. it has made operating that much harder and staying open that much harder. the interest rate element also affects restaurant tour -- restaurant tours ability to borrow and service debt to make improvements to their business. katie: it sounds like we are talking about two impacts from higher rates. you have higher impacts on consumer and consumer sentiment and also how a business operates and funds itself. caroline: yes. we definitely get it from both

sides in the restaurant industry. our profit margins are so incredibly thin that when we do need to borrow money, every little bit counts. every time our payments get higher and higher it cuts into the profit margin and makes it hard for us to stay open. we are dealing with that consumer sentiment and the attitude on the part of the consumer that they feel like they have the ability to go out. they are justified in spending the money. they used to go out tomorrow often. as these prices have gone up, they are going out fewer times. katie: talk to me about input costs. the cost of raw materials, actual food. it is hard to miss the price of cocoa which has skyrocketed. what are you seeing on that front? caroline: from all sides and in california we are dealing with and avian flu. that is pushing the price of eggs up dramatically again.

all kinds of poultry. beef prices have been skyrocketing over the years. they are predicted to stay high this year especially when you consider the devastating fires in texas. we are dealing with that element. all of our ingredient costs have been going up. that adds into this whole pressure from inflation that people are seeing on our restaurant menus. we are seeing it on the ingredient side. katie: however restaurants and food -- how do restaurants and businesses cope with that? what adjustments have they made when it comes to how they prepare food or portion sizes? how do you manage around some of these issues we are talking about? caroline: this is a constant problem for us. we are always trying to figure out how to manage these costs to remain profitable or breakeven while also continuing that

confidence on the consumer side that they are not being gouged. that they feel like they are getting what they are paying for. i feel like in the restaurant industry almost more than any other, consumer sentiment drives menu pricing. it is what the consumer will tolerate paying. even if it is less than we actually should be charging in order to keep our restaurants afloat. we want to keep our customers happy. we want to make them feel like they are getting value for their dollar. cutting portion sizes. that is a difficult issue to handle because you are dealing with people feeling like they are not getting what they are paying for. it is such a hard balancing act. it comes up for us in terms of managing our labor. in terms of trying to find less expensive ingredients to use in our menus but of course i can say on our part we are trying to

use only organic locally grown produce so you have a challenge of trying to continue the culture and the ethos behind your restaurant and it is incredibly hard. katie: a lot of needles to try to thread on your side. i am curious to see what you are hearing when it comes to labor. the availability of labor and workers because you look at the official data and it shows the labor market is still very tight . is that your experience? caroline: yes. it is still hard to hire qualified employees. it is hard to keep them. we have seen a different kind of employee coming through. a lot of people who don't have a lot of experience and so we are trying to train people to get them the experience they need to work in our industry. it is still a tight market for finding employees and keeping

them. it is the balance of the guy next door is paying more. it is something that started in covid and has not ended. katie:katie: it is great to speak with you. appreciate your perspective on this fed day. cofounder of the louk group. an interesting perspective. how the fed's policies are impacting a real business. you take a look at what the market is doing in the lead up to the fed decision. not too much of the s&p 500 a little bit higher. same thing if you look at the nasdaq 100. big tech stocks. the bond market not doing too much either. on the equity markets, volume has fallen off a cliff. down more than 20% from its 20 day average. that will change drastically in just an hour. that does it for bloomberg markets. tune in at 1:30 p.m. for the fed

decides. this is bloomberg. ♪ this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo

her uncle's unhappy. get your business online in minutes i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

>> from the world of politics to the world of business, this is balance of power. live