♪ lisa: we are seeing the employment numbers already lag. jobless claims should be doing substantially better. >> this recovery is not normal to the upside. we do not have a playbook. >> that is where the central banks will allow the curve to steepen. >> managers love the steel -- stephen curve. >> the u.s. economy will come roaring back. >> this is "bloomberg surveillance," with tom keene, and lisa abramowicz. jonathan: good morning, this is "bloomberg surveillance," on tv and radio. alongside lisa abramowicz, i'm jonathan ferro. the s&p 500 down 11. yields higher by 41 basis points. lisa, the big returns, yields

lower. lisa: the question is how much the fed response to the tantrum yesterday that seems to be fading, how much do they come in and try to give a cap to how high yields can go, versus the moral hazard of stepping in any time someone throws a temper and -- tantrum? jonathan: should they respond? we have seen the ecb do that, the rba do that. they don't like what they are seeing. they would call it undo tightening. chairman powell called it a statement of confidence. lisa: a bigger question about fragility of one of the biggest markets in the world, that we could get these massive moves based on technical underpinnings that the fed cannot control with a balance sheet of $7.6 trillion in a massive amount of stimulus already pumped into the economy. does that say about the bond market stability to handle true normalization, a true recovery

with longer legs? jonathan: i don't know. maybe you can blame the fed? lisa: because they were not pumping enough in? jonathan: blame the fed for something. we have gone from gamestop to blame the fed, and from high yields, better growth, to blame the fed. lisa: the fed is controlling a great deal of the market, not just the fed but central banks. when they take such a heavy hand and markets, you have to think they will take responsibility for the consequences, and the distortions that can get blown out of proportion. this is a serious debate they have to think about. jonathan: is it a test of the central bank credibility, and who for? we look like this, equities seven points on the s&p, off to tense of 1%. the bond market, 1.61 your intraday high on the u.s. 10 year in yesterday's session. we are back down to 1.48.

crude back down to 62.26, and it is not just energy but metals, copper not doing well. lisa: it is going to this idea of crowded trades as people piled into the reflation trade and took a step back. we get an idea of the fundamentals today when we get personal spending data at 8:00 a.m. and the key ecb data the fed looks at to determine inflation. how does the market respond to a big inflation upside? upside surprise? does the market get concerned or do they say this is what we are pricing in the near term, this will cause the fed to react, and it will suppress yields? 10:00 a.m., sentiment data out of the university of michigan. interesting to see what consumers expect. they expect an increase over the next year, two years.

everybody is trying to get their plane tickets is on everyone celebrates -- as everyone celebrates the end of the pandemic. the house votes on the $1.9 trillion bill. i wonder how much pushback the democratic wing of the party looks to remove the $15 an hour minimum wage. jonathan: would you be surprised by a push higher into inflation? the fed is going to be. people let home, office, trading desk will either be longer-term which is what the fed is expecting and what is priced in the market. inflation expectations. the inconsistency between inflation expectations which have not done much, and rate hike expectations, which have. lisa: the rate hike expectations are derived from market moves resulting from distortions. there is a lot going on under the surface.

it raises the question to me, at one point is fundamental data matter? we have a moving target. how many revisions have we seen the past month based on expectations from a month earlier? jonathan: this is about years, lisa. have a lot of fun with that. i made a trade several years ago and we revise it and re-revise it and re-revise it. we are up a point on the s&p 500. let's bring in chris harvey. great to catch up. your take on the price action the last 24 hours. chris: a lot of people worry interest rates are going up. that is not our concern. interest rates play a big part. we are worried that interest rates will weigh on the growth side for longer duration and that is something longer-term to worry about. the readjustment, the economy will be very strong.

consumer spending will be strong and it is just a blip. we might have gotten ahead of ourselves, but we think it is nothing really to worry about at this juncture. jonathan: the move higher in yields supported the cyclical trade in the last 24 hours. how would you look at the repricing in the last day? christopher: it has been a little bit of a repricing, not a big repricing. we wanted to get high covid data, high cyclicals, and we still want that. if they continue to sell off, we would dive into that we are going to let it play out and see how it happens. at the end of the day, we have inflation and that is good for the reflation trade and the cyclical trade. lisa: are you buying banks now? christopher: we would -- banks

and think it is a good place to be. you can find pretty good value pretty much across the board with banks. there is pretty much -- enough leverage because we don't think we will be has challenged. the capital market revenue will be better and we are starting to see people and flows move into the space. lisa: given the reaction in big tech, the disproportionate reaction anytime we see a move up, is this a warning sign that not only will it underperform the sector but it will lose value over the next couple of months through year-end if interest rates gradually normalize? christopher: lisa, let's just talk, with big tech and growth, there is a different couple of pockets in different silos. it is the stocks that are trading at growth at any price. they are most at risk and many

of these silos, hyper growth type companies and funds, have been getting money in. if that reverses, that could be a very difficult situation because there is no natural buyer other than the people that already own it. if you start to see liquidations, value investors will not step. you can see a big gap down and that won't happen in the markets. some of the larger growth companies, the fundamentals are fine. we worry about the hyper growth names that are duration or industry sensitive. jonathan: a couple of issues with your line, so i apologize to the audience. on the banks, you've had a 20% move on s&p banks -- s&p 500 banks in the month. rbc, morgan stanley have all said the same thing, this is not a story everyone is allocated to

and there is still more money. do you have visibility on the same story? christopher: what we are looking at, and it is developing day by day because the information is coming in, from a position point of view we see people are not overweight banks. they are still overweight growth and growth type stocks, so money can move into the sector as the fundamentals change, and that's what we expect. another thing that would add to asset flows is when does the move from fixed incomes to equities happen? it is all about force and when we talk about force, it is about return. when people start moving money on fixed income assets, they think about liquidating or changing allocations and that is beginning. maybe in the next couple of months, we can see a bigger picture from the move from bonds to equities. jonathan: chris harvey, thank you, sir. yields have been higher through

the month, up about 40 basis points, and banks rallying up money percent on the s&p 500. duration, in holding duration you have been absolutely hammered. big tech, growth stocks, you have been hammered. in banks and energy, you have been flying. lisa: focusing on his point that when people see losses in their portfolios, that's when they start to exit some of the higher quality bond funds. we have not seen the mass exodus yet, even as we see substantial losses. you wonder from a technical standpoint what happens when we get that capitulation. jonathan: i think about when the buying will come back into the bond market because we have been speaking to fixed income investors all shortening up duration and worrying. it has been the consensus view and the prices last week demonstrating that. if you listen to the central

banks and believe what they say, they will not hike several years, the rba and the australian central bank has said they are not thinking about raising until 2024. think about the guidance you are getting and the opportunity in the bond market. lisa: this is a powerless bet. if central banks -- perilous bet. the inflation risk becomes more substantial, especially with fiscal stimulus. this is what people are looking at, the idea that if the fed does not show a willingness to go into the longer end of the curve, if they will not buy longer dated bonds, what is the cap to the yields? real yield can go higher. they are still negative on the long end. if the fed does not get involved, why can't they go positive? if you step through some of the iterations, if there isn't a consensus on that. jonathan: they want the inflation overshoot.

they have been telling us that. lisa: they want the bonds to yield more longer-term. jonathan: we have been worrying more on the front end at the belly. that is more of a challenge to their view on rates in the next several years and what is happening on the long end, and maybe that echoes cheryl -- chairman powell's point. from new york city this morning, equity futures down four, -1/10 on the s&p. yields down to 1.50. this is bloomberg. emma: with the first word news, i am emma chandra. the house is expected to approve the one point roland dollar -- one point $9 trillion coronavirus relief bill, leaving americans one step closer to receiving $1400 paces -- payments. it is unlikely to include an

increase to the minimum wage. president biden has undertaken his first overt use of military force since taking office, carrying out airstrikes in syria. the targets were iran backed groups believed to have made rocket attacks. bloomberg learned a u.s. intelligence report implicates saudi arabia's crown prince in approving the murder of "washington post" journalist jamal khashoggi. that release reflects the biden administration's decision to recalibrate relations with saudi arabia. it is another big challenge to an economy already rocked by brexit and the coronavirus. foreign workers are leaving the u.k. at the fastest pace since world war ii. london alone has lost 700,000

people of the last year. the implications are huge for treasuries, landlords, and a global recovery. global news 24 hours a day, on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. ♪

♪ >> the economic toll this

pandemic continues to tear through our country as brutally as the virus itself. and so, we need the comfort and economic -- we just have to step up. the economic toll, we have to address with the same aggressiveness and seriousness and purpose as the virus. that's what the american rescue plan does. jonathan: some cracks in that plan around the minimum wage, president biden speaking to the virtual governors association meeting. alongside lisa abramowicz, i am tonk -- jonathan ferro. we look like this on the s&p 500, all over the place, down a couple of tenths of 1%. now unchanged. the bond market did returns, from 1.61 at session highs yesterday to 1.46 now. the rollover and the commodity market, here as one that has

been the darling -- here is one that has been the darling, copper down. wti at around $62 and 20 odd sense. lisa: you have to wonder how much is a consolidation after a huge move up. do you remember last year with crude, we were talking about negative prices on futures? here we are talking about $100 oil. jonathan: that was quite a spring, the outlook whole lot writer. we had jeff currie on talking about 75 in q3. there has been a lot of capitulation to a better outlook , better forward outlook in the last week. lisa: it comes on tightening supply, that saudi arabia and the opec nations agreed to bring down supplies. there is a question about shale in the united states and the intelligence of investing in infrastructure that may be obsolete in 10, 20 years.

jonathan: the metals markets, the lack of investment for 10 years, we will talk about that. kevin cirilli is joining us. the battle is around the minimum wage. what are you hearing? kevin: marsha blackburn said they are ready for a political battle once the house of representatives likely advances the stimulus bill later today in the senate. there are a host of different republicans suggesting they are not ok with the $15 minimum wage increase over the next couple of years, whether it is senator tom cotton, mitt romney, who are suggesting there needs to be a gradual wage hike over the next couple of years, or hardliners like senator blackburn who are saying no way, know-how, they will never get on board. lisa: isn't this out of the provision or out of the bill? how could it make its way in? kevin: it is precisely how the

timetable goes for the wage hike. i will be candid. when you talk to industry groups outside of washington like the restaurant association, for example, there are some major concerns they have for small size businesses, small sized restaurants about the legitimacy of them being able to afford something like this. already, when you talk to some republicans, they are looking beyond the notion of the stimulus negotiations and they are talking about infrastructure. later today, i will interview the secretary of transportation to judge about this. -- pete buttigieg. lisa: where will you be interviewing him? kevin: on bloomberg. plugs aside, the path ahead is a part of this -- because the capital the administration has

been expending. lisa: how much consensus is there on the main set of infrastructure spending? kevin: they are worlds apart, and you hit the nail on the head with energy policy and how that has begun to get wrapped in. it is not just republicans and democrats. the senate energy community -- committee, they have concerns. the politics i would suggest, there are four different camps -- hardliner progressives, moderate democrats, this fascinating alliance of sorts of the far right raising concerns that, if you want to get into it, ethanol versus other fuel, energy sectors, but it is different. jonathan: foreign policy, to what degree is this administration trying to isolate the saudi crown prince? kevin: it is a world apart from the previous administration.

we talked about china in particular and how there are similarities, but in dealing with the saudis, this is a world apart in terms of the tone biden administration has taken with mbs. they have faced criticism, this administration, from republicans and even from some democrats for their tone to israel. but it is also a much different middle east than the blinken state department walked into, from the obama years. jonathan: i don't want to put the pieces together for a puzzle that does not exist but i wonder of what happened in syria for militias they considered to be sponsored by iran, whether that is tied to the story of the administration wants to isolate the crown prince but maintain ties with the kingdom? kevin: that is a great point, and i don't have the reporting to connect those dots, but i

think you are onto something. to go one step further, when you look at it through the prism of the last few weeks of what is been going on with tehran and how they've tried to have it both ways by saying they are not going to work with president biden, they are not open to having conversations, but then suggesting they would allow for some u.n. officials to go in on their terms, to look at their nuclear capabilities. it is a lot of confusion right now, a lot of confusion. and it needs clarity. jonathan: when does the report we are expecting to see, out on the tragic killing of jamal khashoggi? kevin: we were expecting that in the last 24 hours, but it has been delayed. when we get those developments, we will bring them to you. jonathan: good to catch up, chief washington correspondent. pete buttigieg, the u.s.

transportation secretary, on bloomberg television later this afternoon. lisa: very well done from the ferro school of plugs. jonathan: i do not plug mine as much as tom keene. lisa: i am interested to hear what pete buttigieg has to say on energy spending and the green energy, especially from texas officials after the infrastructure collapse. jonathan: politics, a beautiful thing. lisa: you love them. your patience is endless. jonathan: the bond market, the bids are back. the yield market is lower, down by about five basis points on a session. the equity market firmer, but we have been all over the place, five points up on the s&p 500 and up 1/10 of 1%.

euro-dollar holding onto 1.21. the ecb continuing to push back. an executive board member not liking what she sees in the bond market. some stabilization particularly in the last couple of weeks on the euro. (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that and more in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you to maintain comfortable, correct form. that means better results in less time. you can do an uncomfortable, old-fashioned crunch or an aerotrainer super crunch. turn regular planks into turbo planks without getting down on the floor. and there are over 20 exercises to choose from. incredible for improving flexibility and perfect for enhancing yoga and pilates. and safe for all fitness levels.

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♪ jonathan: from new york city, this is "bloomberg surveillance." futures all over the place, the s&p and nasdaq unchanged. down more than 5% on the nasdaq and the s&p 500 down about 2%. the story coming from the bond market, twos, tens, 30's, let's look at the belly of the curve. 0.7747% on the 10 year at 1.47, down five. what are we looking for from the central bank sponsored -- pace, timing, and composition. the pace is quick, a 40 basis point move on the month alone.

the timing, some people might argue is too early. the composition, what we were told by many of you that the move is driven by inflation expectations, that's ok. by real yields, that's toxic for credit, risk assets, and to big tech. 0.66 negative, -0.66 percent, and that 30 basis point change is enough to give big tech a smack around the face. >> toxic for tech is right, and we have been talking about it all week. flagship funds lost a record amount of outflows monday, the second largest amount yesterday, and the market down 2% for the etf. the largest holding is tesla, down 1%, headed for its worst weeks in september. tesla had almost an 800% gain in

2020. in 2021, gains have been nonexistent. a new highflying stay-at-home winner, a winner of the pandemic era is extending a record losing streak, set to open lower the eighth day in a row, down 9/10 of 1%. whatever is going on, read it day traders do not seem to be paying attention -- reddit day traders do not seem to be paying attention because gamestop is up. i would note in the options market, the most popular options trade was a call that it would rise to $800 today. today, $800. in the premarket, trading at $128. i wish i could tell you there was a fundamental reason of anything happening at gamestop but fundamentals do not seem to

matter. doordash reported after the bell yesterday. revenue topped expectations and it has gotten a boon from the stay-at-home world, but caps will weigh on the current quarter. that has the stock down about 11% in premarket trading, and also plunging, virgin galactic. pushing back its next test launch into space until may and that indefinitely delays richard branson's entry into space, sad for shares of virgin galactic, down almost 12%. jonathan: some inverse correlation to the market, gamestop flying. lisa: you know what i think it is? tom keene at home taking all of his cash, rotating it to gamestop. jonathan: reallocating. lisa: we will see how that goes. jonathan: good luck, tom. i have already heard from tom.

ian lyngen, great to catch up. pace, duration, timing, run me through the bond market. ian: we have seen a significant selloff in treasuries and the type of repricing that has historically been linked with a shift in monetary policy. the fed needs to say something, and whether it is simply jawboning comparable to what the ecb has done, or whether there is some action to be taken, the market is waiting to hear. there are not any scheduled fed speakers immediately on the horizon that does not mean that we will not hear something by the end of today or into next week. we are worried about, is the fed comfortable with the pace of backup in rates, and it really comes down to real rates. 10 year real yields much higher at this point and the cycle then i think the fed would want them to be.

jonathan: next week, i went through this earlier -- williams on monday alongside bostick, kashkari, brainerd, daily, and then sheryl powell. -- chair powell. how will the script change for chair powell and given that we heard from him a couple days ago as this move was developing? ian: if he doesn't change the mantra from, we are comfortable with this backup in nominal rates to, we are monitoring and watching what is going on in real rates, the move is going to extend because the market will take that as a signal that they can push this trade. keep in mind, the 2021 trade was cheaper and cheaper. so if we get the endorsement from policymakers to let it run, i don't see what will stop 10 year yields from taking another shot in nominal space at 1.60,

may be up to 1.68. the biggest limiting factor will be the response in equities. if we see additional wobbles in the equity market comparable to what we have already seen, that will be the feedback loop into tighter financial conditions that ultimately gives the market concerned that the fed will need to do something. i've been amazed, frankly, at powell's large indifference towards the backup so far. lisa: let's be clear. yes, we've gotten a little bit of a selloff, but stocks were at or near record highs. we have seen an incredible run. how does at what point is it apparent that having a bad job -- regulating gas, you might not lose as much on the real rate basis if you go into bonds, but it does not seem that it is causing a disruption risk assets.

is it premature for the fed to come out now? ian: the fed has done a good job getting in front of potential shifts in sentiment, and that is the risk. you are right, it is not a 10% correction in stocks or a 20% correction. if the fed waits until the s&p is 20% off of the highs, they will have a much harder job to do in getting sentiment back into risk assets. lisa: what does this mean about the fed's balance sheet? if they have to come in with jawboning if not bond buying, if there is any wobble in markets that seem fragile, does that mean the fed will keep the balance sheet at $7.6 trillion or much more, because they are now a controlling agent in a more ongoing way? ian: it is safe to say the fed's balance sheet will continue to expand. they are actively buying $120 billion in bonds between

treasuries and mortgages every month. that is expected to continue into the end of the year before tapering, and tapering will take somewhere between six and nine months, let's call it. back into a position where the fed will have a very large balance sheet but will continue to run it like that. recall before the pandemic when the fed tried to normalize its balance sheet, we saw a reserved scarcity that stop that process. it is fair to say the fed will have a large balance sheet in the foreseeable future. jonathan: it is not about waiting for a repeat of december 2018, it is about providing the adequate guidance to understand the reaction function. on the asset purchase program, i don't think i have and when they say it is a statement of confidence, it is. high real yields is a statement of confidence in the forward outlook. we will be vigilant about what

happens in the long end if financial conditions ease back into the economy. that is not a fit line, is it? ian: it isn't, and wouldn't shift the monetary policies stance. it is any knowledge meant of what has gone on and potential ramifications. jonathan: ian lyngen, thank you. it is not responding to what is in the equity market and s&p 500, it is about providing clarity on how to respond to things in the future, and it is not necessarily about verbal intervention, it is about the obvious. this feeds into the real economy and could be a problem. lisa: christine lagarde tried that and it failed. there will be a question of how successful it will be for the federal reserve. what did yields do? they went up.

does it have the ooomph from fed chair powell? jonathan: it was the treasury market, hearing from the r bay -- rba, you need to hear it from the federal reserve. they had opportunities and did not take it and we ended up with a massive move. lisa: what was underpinning this? we don't have a clear sense. was it jay powell's testimony where he repeated the same thing , except that the rise in rates was a vote in confidence, giving a tacit understanding and approval for it to keep going, or was this a technical move that got triggered and will get rectified if buyers come in? if this is just a normal market, should the fed allow the normal market to be normal? jonathan: over the last month, i would say a lot of it was fundamental. over the last 24 hours, huge technical aspects.

regardless of what has taken us there, you have a yield at 1.50, a year-end price target for most people on wall street. real yields 40 points -- 40 basis points higher. this is total inconsistency in how the market has been priced. i cannot add up, just can't reconcile those two things. lisa: especially given the fact that the fed said they will tolerate an overheating and think any spike in the near term will come back down on the longer term as the year-over-year comparisons become normalized. jonathan: congresswoman ashley hansen from iowa. good morning. -- ashley hinson from iowa. good morning. futures up six on the s&p, up 1/10 of 1%. on the bond market, from a

session high yesterday of 1.61, yields back down to 1.4677%, and coming in five basis points under session. prude rolls over -8% -- crude rolls over -8%. this is bloomberg surveillance. ♪ emma: with the first word news, i am emma chandra. most americans likely to be one step closer to receiving $1400 payments. the house is expected to pass the $1.9 trillion stimulus package. the final legislation will probably not include a raise in the federal minimum wage. a senate parliamentarian ruled it could not be considered under the same fast-track rules democrats are using to push the stimulus through congress. a panel of fda advisers will take a close look at johnson & johnson's coronavirus vaccine,

one of the final steps to a possible authorization of the one knows -- one dose immunization. donald trump will declare himself to still be the leader of the republican party this weekend. the former president will speak to a conservative group in florida on sunday. a senior adviser says he is unlikely to say whether he will run for president again, but will boast a crushing opposition in the republican party. barklay has won a legal battle that dates back to the crisis more than a decade ago. stave he was ceiling -- seeking fees. a judge ruled the market saved 10% of the investment. lvmh has agreed to buy

birkenstock. birkenstock did not disclose details. bloomberg reported the deal would value the company at about $4.9 billion. global news 24 hours a day, on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. ♪

♪ >> in the longer-term, we must pursue trade policies that

advance the interests of all americans. policies that recognize that people are workers and wage earners, not just consumers. policies that promote broad, equitable growth here at home, policies that support american innovation and enhance our competitive edge. jonathan: that was the u.s. trade representative nominee from new york city. here is the price action this friday morning. the s&p 500, big losses yesterday across the board, the nasdaq on the week getting hammered. in the bond market, the bid is back in. down five basis points, 10-year 1.47. lisa: pacing pgim. when do we hear from them? jonathan: i am waiting for the call. lisa: we will keep mentioning them until they come on the show. jonathan: 40 basis point real yield move in the last month. lisa: this whole idea that you

will necessarily get yields, because longer term there will not be the inflation people expect. just to be clear, i'm not saying the fed is terrible and everything they've done is bad. i'm raising questions about the implications of taking a move, even if perhaps it is warranted. jonathan: for my benefit or for the rest of the audience? lisa: i felt i had to say that. jonathan: we need to get the economy reopened and lisa's kids back to school. running us now i'm pleased to say is congresswoman ashley hinson from iowa. i know you used to be a newswoman so i will not play any tricks. how do we get the kids of this country back to school? rep. hinson: thank you so much for having me. it is essential for kids to get back in school. my kids in iowa are about to get ready to get up and eat breakfast and get on the bus, because i was schools are open.

about one third of students across the country are only learning from behind screens. science shows kids can be back to school safely. a billion dollars of money has been allocated to get schools reopened. we need accountability on this money to make sure teachers get safely back in the classroom and kids get back they are falling behind. mental health challenges are growing immensely. the number of emergency room visits for our young people is increasing and that is troubling. we can get kids back to school with the money that has been appropriated and we need to make sure we have accountability. jonathan: i sense it is not a resource issue. what is holding us back? rep. hinson: politics have been getting in the way, and kids should not be a political football. if we keep moving the goalpost,

keep pushing back what the end result is, one day in a classroom is not enough for our kids and not as easy as walking down the stairs and logging onto a computer for so many families. i'm hearing from so many people, they had to go to sit in a library's parking lot to access wi-fi to complete their work. that is a reality for so many families and not easy to do. politics has gotten in the way. democrats have blocked my bill three times already. this should not be a partisan issue. we need to be giving our next -- getting our next generation where they belong. lisa: are you willing to put your weight behind the $1.9 trillion stimulus because within that is a good amount of cash to get students back to school because president biden agrees with you? rep. hinson: unfortunately, as the bill stands, i don't plan to support it. there is an additional 130 billion -- $130 million going to

schools but only 30% is to be spent this year. about 9% of the bill is designed as targeted covid relief, but only 9% is designed to get more vaccinations, shots in arms, contact tracing and testing. when you look at everything else in this bill, that is dedicated, the small amount of education funding sent to be this year indicates this is not a big priority. i'm trying to make sure there is accountability. we are talking about $1 trillion left from the last package past four i was in office that was not sent -- spent -- passed before i was in office that was not spent. it was to be used to open schools safely. lisa: a lot of economists come on and talk about how we can already see money going into the economy that was passed in

december, the aid provided year to date going back to last year helped revive the economy and turbocharge the recovery that will allow more people to get back to work. given that more money, economists say, will help move the economy at a faster place and get to a good speed quicker, what is your reluctance to go ahead with this, bigger debt loads? it is very unclear. rep. hinson: there are a few elements that, one of them being the $15 minimum wage mandate. that is still in the house version that will be passing through, so that is clear it is a priority. it should not be in this bill. again, this whole process wasn't how a process should move. we didn't get the chance in our budget committee to offer amendments to make the bill better. you talk about $350 billion bailout stew blue states. the congressional -- bailout to

blue states. the congressional budget office says it is supposed to be $30 billion. lisa: you have had experience with infrastructure spending in your state. would you support an infrastructure bill in addition to the current fiscal support and stimulus that has been passed? rep. hinson: i hope we get to work on an infrastructure package and that is a passion of mine back home. infrastructure is economic development and in true iowa fashion, if you build it, they will come, we know that infrastructure is a crucial part of our economy. we are an ag and economy state so we have to get the project -- products back. broadband has been such an important issue the past year and that is something i am passionate about and want to work on. i hope to consider an infrastructure package, but this

package, $1.9 trillion is not targeted covid relief. jonathan: wonderful to catch up. congresswoman ashley hinson, republican from iowa. the path forward a choppy one for infrastructure. lisa: i wonder how much interest rates fold into this, how the higher borrowing costs and people worry about the interest expense longer-term. you have to fold in some of the bond market moves. jonathan: do you think 1.50 fuels that worry on tens? lisa: no. jonathan: it helps if you grow. 6.5% last year and 5% this year, morgan stanley, these are decent numbers. lisa: what is the reluctance to incur debt in a low interest world when we are trying to turbocharge growth? jonathan: coming up, drew matus.

drew likes higher rates. from new york city this morning, good morning. futures unchanged on the s&p. on the 10, 1 .4753. this is "bloomberg surveillance." ♪

>> the market is the fed as to whether or not it will be able to hold the line. >> we are seeing adjustments in how far it goes is the question. >> that is where the central banks will allow it. >> we will get higher inflation but mostly because the economy will come soaring back. >> it is good for the re-inflation and cyclical trade and that is where we want to be. >> this is bloomberg surveillance. jonathan: