place. >> the question is, will investors can generally pay for what just like a well-known story? >> one of the aspects of inflation, public policy. >> the need to sustain her inflation so i am more with the fact thinking this will be temporary. >> this is "bloomberg surveillance." jonathan: with a three-day losing streak become for? good morning. this is "bloomberg surveillance." i am jonathan ferro alongside tom king. -- tom keene. lisa will be back next monday. a touch on the s&p 500 and the nasdaq, cpi wednesday becomes cpi thursday. cpi friday. the obsession of the moment.

tom: ppi today, the industrial view coveys to be a huge deal 30 years ago. maybe it is today. i go to retail sales on friday. look how it cratered. we want to put perspective on this. i'm going to read off the carnage we have seen. nasdaq, -8%. it is in correction territory. correction territory. jonathan: alphabet, down 6%. each company. apple, 14% of the highs from january. huge company. absolutely battered this year. tom: that is a gentle phrase. i am going to go to standard deviation. our first guest will explain that. every series has a correction. amazon, google, the rest of them are allowed to go down because they are more volatile, have more wiggle around. jonathan: alphabet has had a

great year up until recently. tom: are you replacing lisa? jonathan: i want to talk about germany. 10 year yield climate for seven straight days in germany. why are we not talking about that more? tom: 100% agree. as you observed in our editorial meeting beforehand, the idea we are only going to talk about germany if we go from negative to positive interest rate like we did with the swiss 20-year as well. i have a chart. we will do this for radio just have people drive off the road. showing the two-year, 10 year, and all you need to know on radio is jon says seven days or whatever it is in a row, the tenure is on the edge of a positive yield. jonathan: just to be clear, we don't want anyone to drive off the road. tom: they can pull over and caruso. jonathan: claims a little bit

later and then we have retail sales tomorrow. yields, higher five basis point. -- higher by a basis point. tom: that is serious. we are still within the range that you break out and it is a different story. jonathan: equities down. europe dollars stable. commodity market, crude 64 handle. coming down 2.72% for debbie ti. -- wti. economists will tell you a lot of this is driven by the reopening components -- airfares, car rentals, all of the above, used car sales. the kind of things we should iron out in the months to come. for markets and policymakers, we have to keep coming back to this. policy markets are focused on

the destination. markets have to recalibrate the balance of risk every single day. do i find it odd when policymakers looked down upon what market participants have to do on a day-to-day basis? it is a different job. tom: to what you mention, we're still within the range. market participants have moved yields within the range. i am going to go back to your property which i know you're blowing up for tomorrow and real yield and the basic idea the difference between nominal yield and inflation. they have moved pretty much in lockstep over the last 48 hours. that is a healthy condition. jonathan: let's bring in michael cushman. tom: do you like how i did that? cushman did this years ago. jonathan: michael, good to have you with us on the program. the policy maker with the destination and the market participant which has to recalibrate on any given day.

michael: it is true that every day we are invested in the market and you get new information every day and new have to recalibrate not just your destination but the volatility along the way or the probabilities you might be wrong. even if you don't change your view where it will end up a year from now, the probability is change. it may be the highest probability will end up where the feds as we will but the information will tell you the probability of that is lower that we were before and that has to be reflected in asset prices, distribution of outcomes change. like today's report, is it all reopening or is it just bringing forward reopening and will moderate in the months ahead or something more pernicious at work that we are having an access to my end and higher inflation -- demand and higher inflation and higher inflation in the fed is wrong? jonathan: when he comes to the volatility, stable conditions for about 10 years or so.

shall, low growth. some people called the goldilocks. what about the last couple of weeks? michael: i president and for the fed to say we've had these big inflation over shoots and we are not worried about it. inflation is running hot right now. it is projected to be hotter by the marketplace next year. still well over 2% next year and over 2.5% in this what market and the fed says, don't worry about it. this is a new paradigm. tom: michael, the distribution of outcomes. i love that. i think that is what you do as you recalibrate in the news you're given. is the bear market a setback, a sense of gloom part of your distribution of outcomes? i don't since that on the street. michael: no, i think it is more

about interest rates. we are still within the range. end of march levels despite getting these shocks in may so the fed policy is working. credibility in terms of their qe policy. those things remain in place and the market has not lost confidence the fed will do what they said they are doing. it is the other factors that are worrisome in the sense that where should breakevens be? if the fed has to act fast, why can't they do what are the birds ties and catch up quickly? are we wet into a measured incremental approach that alan greenspan invented? michael: i don't think so. this is a new paradigm so we are not sure exactly what the reaction function will be once they achieve the outcomes. in other words, the thought is it will take a long time to

achieve their outcomes they view as likely. however, suppose they are wrong and they achieve it much faster. it will have to react much as her. let's say in 12 months time, next summer, we see inflation is not returned back to 2%, still 2.5% and likely to stay there into 2023, the fed has said, 2.5% is too high and they will start reacting. i think they will have to react quicker because of the lagging economy. tom: can i point at jonathan ferro, currencies have barely budged? jonathan: and we add credit to the situation, too. equity start to break down and we start busy big cracks in credit. did you see any cracks in credit yesterday? michael: not really. there is an avalanche of supply coming to the market in terms of the companies issuing debt.

we thought there might be lower supply of new issues this year given the record amounts last year and the excess cash many companies have on the balance sheets. but it is not slowing down. it may be a function of companies seeing labor yields are staying low and why not issue more debt? at these low levels and historically tight spreads? we will see record low default. exceptionally low real rate considering the economic path we are on, default should be low. they should be lower going forward. the next 12 months, high markets well ensconced in this good environment. tom: give us your pro perspective on the amazon offering of a few days ago. 18 million large stuffedferro got some 40 yield.

michael: people who were one to be conservative are for yields, literally. at corporate bonds in general, trade, excess for those bonds and companies like amazon are taking advantage of the fact markets are -- investors need yield and they can get good deals on issuing bonds at low yields at the front end of the curve. jonathan: michael kushma, talked briefly about europe on the german side of things, but yield climbing for seven straight days. when does the ecb start getting uncomfortable? italian bond also moving. tom: 100%, dead on. there was a wonderful chart. you are dead on, i'm watching euro as a proxy.

we are not there yet. what a lovely entered in -- afternoon i had. i was at a french bar on the upper eastside. jon, chelsea arsenal was riveting. it was great. we will keep ramsey around. it was touch and go. we will keep him around. jonathan: good stuff. are you done? tom: how come the arsenal can get it done? they have more money than god. what is that about? jonathan: mohamed el-erian from queens college will be joining us in 20 minutes time. do some googling, tom. equities down 19 on the s&p.

yields higher by basis point. claims at 8:30 eastern. tom: are they transitory? jonathan: retail sales tomorrow. this is "bloomberg." ♪ >> southeastern states suffering the most from gasoline shortages will start to get relief this weekend. the largest fuel pipeline resumed operations after the cyberattacks. it started flowing yesterday afternoon. a fleet of castings are needed. benjamin netanyahu about violent clashes between israel and the palestinians. the president is that israel has a right to defend itself against

rocket nations. the militant group hamas has been firing rockets from the gaza strip. israel has responded with a rates. the cdc opened up new immunization effort sing children 12 to 15 can safely take the coronavirus vaccine made by pfizer and biontech. the fda cleared the vaccines used on adolescents earlier this week. bitcoin dropped sharply after elon musk said tesla is suspending electric car purchases using the digital currency. bitcoin fell as much as 15% before paring some of the loss. muska cited concerns about the amount of fossil fuels data for bitcoin mining and transactions. boeing is trying to get past an electrical issue that is grounded scores of the new 737 max jets. the company said repair instructions to operators of the plane that paves the way for deliveries of the 737 max to resume after being on hold.

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>> readings on inflation have increased and are likely to rise

somewhat further before moderating later this year. under my baseline, expect inflation to return to perhaps run someone above 2% longer run goal in 2022 and 2023. jonathan: from new york city this one, good morning. lisa will be back with us on monday. s&p 500, decline down. euro-dollar, off about 1/10 of what percent. a brief rake to the upside on a 10 year yield. just around things out, wti, down by 2.27%. many of you waking up to a tweak from elon musk, bitcoin looks like this this morning.

down by 8% off the back of elon musk deciding tesla would be suspending purchases used by bitcoin offer. time, i am struggling with this. tom: i'm not. jonathan: talking about energy usage. i'm not in the business of getting into people's heads and telling you what they think. the reaction this morning a people scratching their heads thinking, didn't he know this? tom: yes, yes, yes, yes he did. he used the market. classic article, five years ago, four years ago, made it as clear as they can at that time in 2017, bitcoin consumed the energy of denmark. i am sure it is a lot, a lot worse now. this is widely in the literature. the energy consumption to create this fiction is unimaginable as mr. musk, a really smart guy,

pointed out. jonathan: tell us what you think. tom: is not an opinion. jonathan: right now down a percent, just above -- 8%, just above 50 k. tom: right now, jack fitzpatrick joins us. you're too young to remember this, the carter malaise and many people saying it was unfair to former president carter. are we on the edge of the biden malaise? >> that is the way republicans are putting. estate from donald trump comparing him to jimmy carter. we have inflation concerns and i guess shortage. -- gas shortage. could be short-term blips that don't amount to much more than

criticism. if there are lasting crises that really hurt biden, it may be more what is happening at the border with mexico and the economy itself. we will have to see on inflation concerns. that is sort of the latest hit on biden from republicans, at least. tom: the tax hike going nowhere most of do you stack up was -- snaggle puts was on the show years ago. is the tax hike gone? >> it is not impossible for democrats to get the tax they won. right now the infrastructure built the taxes were supposed to be attached to, but in ignoring how to pay for it. pretty much on the back burner. if that were to fall apart,

taxes are something democrats can do in a partisan way. they have not said they wanted to do it separately in a partisan way, so there is no specific plan. i would not rule out tax hikes based on the fact democrats could do something partisan through the senate if they're able to get moderates like joe manchin on board. jonathan: how to the inflation report play out in washington? >> it has been a pretty partisan conversation in washington. democrats are not backing off their plans. one reason is i think they plan to pay -- insisting on paying for big spending increases with tax hikes or at least with fees. they are not looking to choose the economy and leave the rest of the legislative agenda as something that injects attendan -- a ton of money into the system. democrats have not responded to

it all that much. it is what it has been for the last couple of months in which republicans use that as a criticism and democrats say we need to wait and see. jonathan: i sat here yesterday and had to pause as to who we were talking about the relief package passed a couple of months and jason said most economists thought it was too big and then he pushed back further and said some cases agreed with some republican governors who were ending the additional unemployment benefits because the concern is people are not getting back to work. that is not my position but jason was advocating for that -- at least for some of these robing economies. tom: with federal states rights issues and through a step-by-step way we will solve that conundrum were selected states will step away? what is wrong with that? we will see where that goes. i am fascinated to see -- what are we up to come eight states? we don't know.

there are 50 states. jonathan: i counted nine republican states that have ended the unemployment, not nine states total. tom: the district of columbia is not a state. jonathan: that is the question. will he make it a state? >> no republican support most of the democrats can't seem to find any work around. jonathan: off the rails quickly. tom: take a shot of tequila before you come back. jonathan: most people need that before they come on the show. republican governors making this decision, i've been surprised. this will have consequences for real people. maybe it will mean people come back to work. we will see it in the data.

but for people who can't get back to work, that might have been money that were depending on. >> the administration has left that up to the states in terms of when the previously agreed-upon and employment benefits will play themselves out or be cut off. when it comes to the federal government's focus right now, the biden administration is very focused on the vaccine rollout, on trying to allow things to open up. i don't know if the recent unemployment news, the latest figure showing a slight uptick, changes that because clearly, that did not match with their expectations. but it has been a little bit of a notably hands-off approach from the administration in terms of whether they want to tweak the continuing unemployment benefits. stuff expires eventually but for now it is really important thing

that has been placed on the back burner. jonathan: jack, thank you. tom: mention house dinner, i do not understand -- jonathan: did not know the square-mile? from new york city, this is "bloomberg." ♪

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jonathan: here is the price action this morning. s&p 500, down around 14 points. bond market, yields higher by about a basis point. german 10-year climbing for seven straight days. euro-dollar unchanged on the day. crude, down around 2%. after spending about 24 hours with the counts profession telling us why the cpi report did not matter as much as you think it did. tom: i want to say we go to retail sales we will see a massive recalibration of gdp guesses. to wrap this around our next guest, and i want to bring h im in, i have never seen even a

crisis of 2007-2008 where there are so many key decisions that we're all going to make off of a natural disaster. jonathan: let's start with mohamed el-erian. two way risk. you think we are appreciating a little bit more? >> we are. in the marketplace. i think the fed hasn't. it is convinced there is just one outcome so it's baseline is having a very high probability of materializing where's the marketplace is starting to think more in terms of distribution of outcome that is tilted toward a hawker economy. jonathan: judgment or just the seat you're sitting in? the balance of risk, day-to-day. focused on the destination. >> that is due.

remember, weeds to be forecast-based, which would i like to cost correct as you saw information come in. now the fed has become outcome-based. then you do not course correct as you go along. you wait for the outcome. what the market is realizing now is there's a downside to being outcome-based when there are structural changes going on. the big message of the huge data myths be it on friday or yesterday is when there are structural changes going on in an economy, it becomes very difficult for economists to forecast with any degree of accuracy. tom: i want to go to the architecture that we have right now. we do this in honor of your queens college and the mathematical bridge in you walked across. the mathematical bridge to 2023

is not in any of the textbooks, is it? so what do we use? >> we have to have an open mindset and a lot of humility. we have to recognize -- we have to think in terms of a range of scenarios and not become hostage to a single baseline. we have to be able to course correct. this is the lesson of the past when you see structural changes. tom: what is so important is the idea we have a set of outcomes, the gloom crew, pounces on this every day with a great negativity. do you have the confidence that corporate officers can adapt and adjust to some form of set of positive outcomes? >> yes, the ones i speak to are very open to the possibility there are more outcomes out there than they have faced in the past. so what we hear over and over is this notion of resilience.

being able to change your mind. this notion of agility, being able to move quickly when you have clarity. but that much more data dependent, policymakers have become -- they are now focused on the destination with a degree of conviction that is it matched with foundation evidence. that is really a news -- that is really unusual. tom: the citigroup talking about the resilience of the economy. jonathan: you said held hostage. the federal reserve is held hostage. how do you think they are being held hostage right now? >> the framework was the product of a certain world and that was the world pre-pandemic, a world of deficient aggregate demand. that was the world the fed was formulating its framework for. i have a lot of sympathy that

framework made sense for that world. a world like that where the supply-side is religiously stable structurally, where you have aggregate demand consistently, you keep on signaling to the market over and over again that you are outcome-based. that is not the world we live in today. it is very hard for anyone to argue we have a deficient have aggregate demand. we don't. not on the private or public sector. on the supply side, there are fundamental structural changes going on. in a world like that, you need to be able to change your mind. you cannot dependent of corner that says, i will make up my mind after i see many months of data. because by that time, if you are wrong, playing catch-up is problematic. what you are seeing is the market is been much more measured in how it is looking at risk while the fed's opinion of

corner, holding onto his conviction, even though the evidence increasingly says show little more humility. jonathan: how you know if you are wrong? what do you think we'll tell them if they are wrong? >> he said by the end of the year or the beginning of next year, we will know. that is why they are not "taking about thinking." think how many stages. you have to go from thinking about thinking and then explain how you're going to taper, then start tapering. remember, they had no good answer to michael mckee's question about what if you buy 100 billion a month? so they are very far away because they are in this outcome-based approach. that is with the marketplace realizes. by the time the fed figures out today make the right call on transitory inflation, if they are wrong, the adjustment

process itself could end up sending the economy -- jonathan: let me jump in. when michael mckee asked this question, says the 120 billion get it done? the pushback's from the likes of neel kashkari to say this is the labor market and when he does support it. their failure to communicate is how billions upon billions of mbs purchases help them achieve that goal. do you think the as a purchase program is helping them achieve that goal? especially when we have spent the last few weeks talking about the price hike problem. >> it is not helping because they cannot be with the supply side. they cannot lift the bottlenecks by flooding us with liquidity. they cannot improve the functioning of the labor market were open schools with liquidity. they cannot have a better matching of skills to demand with liquidity. we could spend more time looking

at what the bank of canada did, the bank of england did come and say why is that they feel confident they can taper a little bit where the fed is afraid? tom: this is like a three hour conversation. our control room is deciding if we want to go there. mohammed, this is really, really important, folks, what we're talking about. i will go back to your saf five years ago on the dilution of liquidity. i'm not putting this in your words, the delusion about -- we're trying to rationalize a structure come as you will say, and i will lean on candida here, they have had the courage to get away from an expo structure. what is the mechanism the united states does or uses, the federal reserve, to drag themselves away from a deeply exposed reality? >> i hope a robust internal discussion that can be conducted

in a safe zone that looks at the evidence and doesn't get dogmatic in terms of if we change our framework at this stage, we will lose credibility. that will be critical. they have to be open minded. given the structural changes going on in the economy. jonathan: do you not think the stakes are higher for the federal reserve? tom: they are just because of dollar. jonathan: what are your thoughts? tom: this is so important. what is the outcome of the candidate-like taper by jerome powell? >> that is what scares them. they remember not just 2013, may and june, but also the massive uterine they had to do in january 2019 when the marketplace did not like -- tom: there to that bank of japan 15 or 18 years ago. >> and, tom, the question the

marketplace asked is, what if we are wrong? what is the recover ability of the mistake? if you think in that world where there is lots of uncertainty,, end up making mistakes instead of insisting i'm going to be right, if i make a mistake, which would i rather be? i think you would end up with a different outcome than where the fed is today. jonathan: where the fed funds rate could go. i struggled with it and many did, this idea we can tolerate fed funds rate with a four handle. what did you make of that? looks he is talking purely in terms of policy. the economy can tolerate higher rates. i am not advocating high rates, by the way, i am advocating the taper of the qe. the problem is, saw a yesterday, we focus on the fact equities sold out. you know what? bonds sold off.

gold sold off. what you see is the reverse of what we saw earlier, which is when there's some doubt about the liquidity paradigm which has supported all asset classes, the so-called everything rally, when some doubts surfaced -- very small doubts so far, nothing major -- markets set off across the board. there is nowhere to hide. that is what the fed is afraid of. that you have a marketplace where there is nowhere to hide. when there is nowhere to hide, people start doing silly things. that is what the fed is afraid of. it does not want unsettling financial policies to contaminate the economy. the problem is, if it ends up being wrong, they will have the same time policies slamming the brakes on and the marketplace tightening as well, and that is how you end up in a recession. that is why it is better to be somewhat reactive than to wait -- i don't think there will be, but i argue they need to be.

jonathan: how would you be positioned of what could be a messy summer? >> it is really hard because you are being challenged both on return generation and risk mitigation at the same time. some investigators -- investors will look at the tailgaters and that is why the fixed moved yesterday. the average investor, it is hard. the average investor are hoping the fed is right because if they are right on its huge transitory inflation call, and we could have a smooth transition both economic, policy, as well as smooth market adjustment. but it is a huge gamble at this point. tom: i want to go to cambridge economics and we have very little time. i want to go back to the idea of a public solution was to are we going to get a public solution here or are we overreached? >> the public solution comes to

make the fed more comfortable about its ability to taper piping better. -- on being better. risk has migrated more from the banks to the nonbanks but the supervisory system is seriously lacking. i suspect if the fed had more confidence in supervision and regulation of nonbanks, he would feel more comfortable on the monetary policy site. jonathan: this was way too serious. we did not even get to talk about your mets. >> i don't want tom to jinx them so let's not talk about my mets. we have seen this movie before. we get hopeful and then we get dumped. jonathan: seven games now? >> shh.. i will not comment on the seven-game winning streak or first place. jonathan: really good to see you. mohamed el-erian.

tom, can we talk about the mets a little more? tom: that was an important interview. we have to find time to resurface what we heard from dr. mohamed el-erian. jonathan: coming up, dr. jennifer nuzzo. this is "bloomberg." ♪

>> today we are pleased to learn the fda has approved emergency use authorization to be used in

children 12 to 15 years of age. this is a watershed moment in our ability to fight the cover 19 pandemic. jonathan: clinical research and development. good morning. i am jonathan ferro alongside tom keene. equity futures down 14 on the s&p 500. we could have a fourth straight day of losses. yields unchanged after a brief visit through 170. look out the blood market in germany, gilts climbing for seven straight sessions -- bund record in germany, climbing for seven straight sessions. we're debt on was three percentage points on this thursday. tom: we have to watch this carefully and this goes critically into claims today and

tomorrow's retail. right now we recalibrate the pandemic. dr. jennifer nuzzo joins us. i want to cut to the chase. we have talked about the san diego padres yesterday with with two or even by people that play in the field out. what do you do if you are in the stadium when you know the players have the plague? i'm on american airlines flight 2314 from baltimore to dallas /fort worth. am i comfortable? >> picking up the ball when you get there? tom: i don't know. tell me about safety on a routine domestic flight like bwi to dfw? >> get yourself vaccinated. that really eliminates your worries. tom: but we are not. i am hearing percentages, we are nowhere near herd immunity. what is your prescription for

may and june if i've got to go bwi to dfw? >> is a vaccinator person yourself, that is where the differences with herd immunity. it is about everyone else. with you being vaccinated, will get on an wear a mask and do all the things used to do. vaccines give us the ability to travel. i know i will be traveling next month and i am having to be vaccinated. jonathan: we are vaccinated, too, but as we talk about the last several weeks, what you just said is not the message the cdc often conveys. traveling, domestic travel, what about travel between here and europe? why aren't we talking about this more? what is holding us back? >> there are a lot of come to gated things in terms of traveling internationally and one is the policy internationally. what is going to happen to be in my family once we arrive? the adults are vaccinated, i can

protect the kids with masks and other things, but not knowing if we will have to be quarantined or if plans will change, perhaps even mid-transit, that is challenging. here in the u.s., we are in better circumstances in terms of our daily case numbers than many other countries are come all due to the incredible vaccines we have been using. jonathan: protecting her children. we played some sound about three minutes ago from a doctor who works for pfizer who works for pfizer he said this is a watershed moment in our ability to fight back the cover 19 pandemic. do you think vaccinating 12-year-olds to 15-year-olds is a watershed moment? >> no. i think it will give a number of parents a piece of mind they did not have before. i think many parents are eager to get the kids vaccinated because they want their kids to returned activities. i have not felt vaccines were necessary to make that happen but if that is standing in the way, that it is another path to

freedom. but if we want to get serious about ending the pandemic, what would be a watershed is we vaccinated working populations around the world or people that we know are quite vulnerable from death. if we can use vaccines to take death off the table, we would not be hearing about it. tom: is it feasible to take our ftse vaccines and run them over to india or other beleaguered nations? >> it is easier than you would think. requirements to keep a very cold are not without challenges but challenges that have been overcome in even more difficult settings. for instance, democratic republic of congo has been able to do it in epidemic situations. it is a wrinkle but one that can be overcome. tom: i look at where we are and it comes back to the hospitals. we are starting to see the discount come down. -- death count come down.

our other procedures being done or is it still on a covid alert? >> they have not fully relaxed the alert because they recently did have two step a bit when there was a pumped in cases but everyone -- many people were afraid it would be a delete surge but he did not manifest that way. some parts of the country were hit hard, michigan probably being the most notable example. i think it is important to look at hospitalizations and deaths going forward. we are using the vaccine to tame the virus and take off the ability for people to have to go to the hospital or be killed. it is not about herd immunity where we stop the virus from circulating. it is about no longer fearing covid more so than we with the common cold. jonathan: policymakers could convey that more strongly. dr. jennifer nuzzo, senior scholar. really nice front page on one of

the newspapers in boston yesterday. massachusetts recording a single day of zero. tom: thank you for bringing that up. i have not heard that in all we have done on this 14 or 15 months. dr. nuzzo talk about good it ever be like the common cold? that is a stunning statement. jonathan: that was the initial goal when this started spreading a year ago. tom: let's get back to dr. mohamed el-erian. jonathan: is point for a couple of months is the federal reserve has shifted framework willingly, by their own design, but holding them hostage. as the market is try to look at to a risk, the fed is unable to do so because of this new reaction function. the risk around that, i think the market is starting to appreciate. i think it is important to recognize there is a difference between being a policymaker and

a market participant. the policymakers just have to can buy the same story, same story. if they change it all, they seem to be scared of changing the language early on. jonathan: at one moment -- there were eight or 10 moments, but the one where i interrupted him and said, but what about back to the bank of japan? to me, that hunts all monetary efforts. we make jokes about it but, seriously, it haunts people with the japanese attempted to raise rates, got it wrong, and the modern generation of monetary experts have never forgotten that moment. the memory of the bank of japan is front and center. jonathan: well said because it is a double-edged sword. tom: so much your is what alan

greenspan folded into the system , the measured approach. are we going to be measured coming out? he alluded, maybe not. jonathan: that is the point. from new york city, for our audience worldwide, this is bloomberg. ♪

♪

>> i wouldn't to a judgment yet -- wouldn't leap to a judgment yet. >> the fed is telling you inflation fears are all over the place for investors. >> one of the aspects of inflation that i think is driving the commodity move is public policy. >> i just don't think it will lead to sustained higher inflation. i am more with the fed thinking that it will be temporary. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york city for our audience worldwide, good morning. this is "bloomberg surveillance ," live on tv and radio. alongside tom keene, i'm jonathan ferro. lisa abramowicz will be back with us on monday. here's the line of the last 24 hours for me. wells fargo, "no one said reopening would be cheap." tom: