>> there's just so many unknowns on how this reopening is going to do. the real and is when do we get to normal. >> it is an economy starting to move from recovery into an expansion phase. >> could we have several years of much higher inflation? yes. >> i think the fed is committed to the mandate, and the mandate looks somewhat different now. >> i think the fed did the minimum. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. lisa: embracing claims thursday

with a humble fed framework. good morning. this is "bloomberg surveillance" on bloomberg radio and bloomberg television. we've had a shocking fed meeting where they actually said something. it was not a snoozer, to quote you, tom. there's a question whether we are looking at a new framework for inflation perhaps, more important than full employment, whatever that may have meant to the fed three week -- the fed three months ago. tom: what i would do is get out the date calendar. july 28 matters. but can you imagine the dialogue given the data of september 22, november 3, and the year-end snooze fest of december 15 will have huge value. lisa: we are seeing five-year yields continuing to climb. this expectation for potentially to rate hikes in 20 -- potentially two rate hikes in 2023. the fed has managed to shrug

this off to a large extent. at what point could be disruptive? romaine: there's little calculus that has to take these here. we are adjusting to some of the shifts in gamma and the idea that even if the fed has shifted their general thinking, it is still going to take a while for that to result in real policy changes. lisa: i have to go to the flattening yield curve and at what point higher yields i guess are good for banks, flatter yield curve ad for banks. at what point is the fed looking at a regime that is less friendly, rather than one that allows them to profit more. tom: you nailed it yesterday, lisa, looking out the curve. the dynamics of the five-year out to 30 year. there's the so-called belly of the curve which we looked at yesterday. i would suggest the fun and games is going to be amazing to see some of the dynamics in the measured maturities and even the overnight wall of cash we've got out there. lisa: five to 30 year treasury

yields curves are actually now the flattest of 2021. tom: we welcome all of you on radio and television across this nation. futures at -12. the vix goes out to 18.28. the yield, the 10 year yield way different than pre-powell, one point 57%. that is a good introduction to the gentleman from boston. here's david westin. david: thank you. we are joined by the chairman and ceo of bank of america, mr. brian moynihan. thank you for your time today. the fed has made it official we need to pay attention to inflation. they didn't move anything except some dots on the plot. are they reacting in the right way at the right time, or is it too much? brian: first, good to see you again.

i think the first point is about the virus, the vaccines and the variance. the second point is about the.. -- about the dot plot. if you have the threev's, virus, variants, and vaccines, they need to see the whole they were trying to fill between fiscal stimulus and accommodation to put the economy back where it was, and with the same growth characteristics or better growth characteristics. central banks are going to struggle when this virus is behind them because at the end of the day, you think about india, think about what they went through over the last several weeks. think about the u.k. delaying the full reopening because the variants. think about the u.s. vaccines through half of the population. the second question was the dots, this great debate whether

these add value when they are put in for different purpose. but leaving that debate aside, the question is the fed's economic ejections for this year are 7%, next year 3%. the street matches the fed this year, but asked year, bankamerica securities is at 5%. if you believe the street and bank of america are more right as we move through the year, the reality is the economy is growing much faster than it was with much more fiscal stimulus still to be spent, much more opportunity for the economy to round out and grow. that is something people should pay attention to. this year's rate of growth was half of what it was predicted to be. if those predictions move, those dot plots will become uninteresting because things will be moving faster. think about 2019. same fed, somewhat different people. the same research department. in mid-2019, 2% plus 10 year

treasury rate. economic projected forward growth was 2%. think about that, where we are now. we got three times the growth rate projected next year, even two times the growth rate ejected. in the low threes by the end of 2023, low 4% this year. the only thing that was coming the team of 19 i weight growth. david: what about inflation? they have also taken up the fed, the projection on core inflation. you have your tentacles into so many consumers, as well as small businesses, more than anybody else. are your customers feeling real pressure from price increases? brian: great debate is what is

temporary, what is transitory. these terms are used to try to signal what they think. right now the firm belief by the fed's most of this is transitory. the question is what about the stickier things. as unemployment rates come down and you are seeing the pickup we will see with the new claims this morning, you will see the employment market tighten. if you ask small business customers, last fall their number one issue, pandemic. this spring, the number one issue is getting people to work and supply chains. that is a different place, and that means inflation characteristics are out there to be filled, but is it temporary is it transitory -- is it temporary? is it transitory? i think there's a debate, but it is about whether you think the stickier parts of this will happen. in our customers' accounts, they

still have 60% to 70% of those funds in their accounts, ready to be spent. not 20, but 19 percent, 20% growth, that is very strong. we have to get into the question of what is transitory. david: the one thing that seems clear is that we are changing the dynamics. we were on a loosening phase. we are now going to start tightening. it is not clear when or how fast you what does that do to bank of america's business at its core? let's start with trading. we've heard from a couple of your rivals that trading is down in the second quarter. could this cause volatility come of the tightening that could help with trading? brian: let's go back to our

economic projections, that the economy this quarter will be about the same size as it was heading into the pandemic, which means you are sort of restored. differently constituted with shortages and supply, employment not where we want, spending that is migrated from panic to sort of do-it-yourself, now go out and eat, restaurant spending up dramatically, travel back to where it is. in terms of trading, others always seasonality between the first and second quarter. the reality, if you really think about it, is that volatility helps the trading group, but from a bank of america perspective, we would rather have the economy growing at a solid rate because that means great for the core business, great for market formation activity. less emergency and more normalized. it also means great for loan demand. loan demand we are seeing start to pick up as we move through the months of april, may and june, which is better than it was last fall or coming into the

early spring. david: it sounded like you are sort of along with your rivals on trade in the second quarter, which should come down. and i understanding that correctly? brian: if the ark i -- if the market moves, we all kind of maintain our market share together. we're not going to be a heck of a lot different from other people. david: that raises the question of what does it do to your other business. if we are in a tightening phase, what does that do to things like net interest margin? brian: the net interest margin, the apollo balance was huge, of the month of fiscal stimulus and monetary accommodation. the good thing about the business is half-hour money comes from the spread, and you are starting to see those loans stabilize as we get into the first quarter and start to grow at a modest pace. but our credit card balances fell from $90 billion to $70 billion, and those are the kind

of things that indicate the customer is still getting back in the game. our middle-market drug rate went from the low 30's the low 40's. we are and what i call the twist of both rates and the economy. rates moving up helps our business, but if they are moving for the wrong reasons, it doesn't help our business. the economies are growing at a fundamental basis as we move forward. david: it is pretty modest still as a practical matter. the fed continues to buy those bonds, which means there's more stimulus coming into the marketplace. is there demand for more loans? are you seeing demand from your customers? brian: we are seeing as we came into this quarter. our small business originations since may 2021 were about 15%, 20% of small business originations in 2019.

as funding crossed over in various areas, that is good. it is still not where it was. we fell from $980 billion of loans to $900 billion of loans, but that loan growth means the economy is going well, and we expect that to continue. if using from the first quarter two the first quarter you will see that growth in deposits continue, that is good for banking generally in particular. but the other day we are in the part of the process where you are seeing companies need to hire, need to get goods to manufacture, and that is because of a 7% growth rate on the economy that is the size of the american economy, that is unprecedented. think about that underlying activity. that will be good for bank of america because that's what we've got to get focused on. david: give us a sense of how the pendulum might have changed your business when it comes to digital.

where is bank of america right now? brian: the three things that happened in terms of digital, number one, consumer adoption continued to go, and by necessity, it rounded out. we continue to see digital consumer customers today, but what happened is the amount of sales went from 40% moving up to 60%, 70%, and now it is settling in the high 50%, 60%. that means there's efficiency and effectiveness that reach the market. the second important thing was what happened internally. our ability to interact with customers, our ability to relate to customers, think about it. for five customers of record banking fees and we couldn't go see the customers due to the pandemic, so that ability to operate differently is really important. the third thing is that when two various businesses, so wealth management adoption rates went through the roof. in commercial businesses, the

cash flow and opportunity went up dramatically. you are seeing companies that did digital, the use of digital is important. that gives us the flex ability to continue to manage expenses for our company. david: does that mean as a practical matter, you could see your number of retail establishments go down? i think you are at something like 4300 now. brian: it has been coming down for years. it is based on customer behavior. yesterday, we opened in kentucky for the first time in our history. so think about that. we are opening new markets. indianapolis, minneapolis, denver consult lake city, and now kentucky. all have been opened in the last three or four years while we are shaping the distribution franchise, due to the fact that the customer behavior changes. we watch that carefully, and long-term we've had success, and

now we are 4300. during that time, customer satisfaction has gone up, which means other digital means of operating have reported that activity. david: you talked about the bounce back in's consumer spending you're seeing. you've got some of your rivals like citi changing their credit standards on credit cards. jp morgan really beefing up on marketing. tell me the competition for credit cards and what bank of america is doing. brian:brian: we have always taken a position in our credit card business that is is -- that it is about our core customers through the rewards systems. we have the only all company rewards. if you have preferred rewards, you get rewarded for your accounts of all types and lower rates on your autorun sent stuff. -- on your auto rentals and stuff like that.

it fell probably by 70%. it is back now to 30% lower than it was, and that is good news. the reality is it is a great business, and we like it. it is part of our core consumer business. checking accounts, credit cards, auto loans, home loans. be straightforward about it. our team does a great job with it. tom: i know you said --david: i know you are -- i know you said you are hoping to get her stuff in office. are you going to require them to be vaccinated? brian: right now we are moving back people who are vaccinated. our hr team has done a fabulous job in terms of managing through this, not with any playbook, but because before, there had been no job done, so they are doing a great job. we have 70,000 plus people. it is worth getting back to work

because this allows people to move under the cdc cap lines -- cdc guidelines masks. the view is after labor day, we will be able to operate fairly normally and then start to make provisions for the other teammates through the fall. david: brian, thank you so much. brian moynihan is the chair and ceo of bank of america. tom: david westin, thank you so much. on "bloomberg surveillance," we welcome all of you across the nation. to me, the basic idea is bank of america with all of the mergers over the decades, they wander into the -- into kentucky, and the new marketing plan is to bring in a bottle of forrester. [laughter] romaine: i'm not sure he said he would bring an old bottle of forrester. tom: i thought i heard that. romaine: but he's doing a lot of good things to try to lure much broader business than just the

depositors, and he's did a -- he's done a good job of doing that. tom: lisa, you have really been dead on on this, there's just a wall of money across all of our lives that we don't know what to do with. lisa: he was talking about how spending is definitely picking up any significant way. he talked about the mystery of inflation. what is interesting to me is that he is concerned about the idea of inflation. there's a question here about the health of corporate america in this strange environment that is uncharted. tom: that is the key. it is original territory, as we heard from chairman powell today. futures -15, dow futures -95 yields have made a move, and we look for more data. kit juckes, socgen, really

making a point this morning that may have -- that we have shifted to analysis of the data. maybe that will carry through in the summer as well. right now, james paulsen joins us of leuthold weeden. he has a wonderful midwest view of where we are right now. in what way is the broad midwest of america different than what chairman powell is living on the east coast? what is the difference you observe in our recovery from pandemic? michael: i think it is fairly -- james: i think it is fairly similar. i really do. there's been palatable relief everywhere. seeing things increase out state, as well as in the city. people are taking in all of the things they couldn't do for a year, restaurants and travel. the airport is full again. there's a boom.

there's a huge boom. the fed is up to 7%. i still think we are going to do 8% to 9% this year, and maybe 5% next year. so i think there's so many forces, left over forces that are going to keep earth strong into next year and may be beyond. lisa: there's a question about peak grouwh. he said middle-market customers are hesitant to draw credit lines. it speaks to the reluctance to take out new loans at a time of stimulus. are you concerned about peak growth and how the market will respond to that with perhaps a more hawkish fed? james: there's no doubt we will have peak growth. we fell 9% year on year in real gdp this time a year ago, record

setting in a postwar collapse, and we will have a record-setting advance in a postwar period this year. but when you are doing peak growth from 14% to 15% year on year, and it slows down, i am not sure anyone notice because we will still be growing christie double digits -- growing close to double digits , which is off the charts historically going forward. so i'm not sure that growth people worry about in the cycle is nearly as meaningful this time around. the real issue is this is just a one-time sugar high of 22 anyone in growth, or is it sustainable growth going forward? i think it is looking more and more like sustainable, real growth, and that's says a lot for the stock market. one quick point on fed tightening, and inflation in general, when i look back historically, when you have the

type of growth we have, so strong and fundamental profit growth exploding, the impact of tightening and the impact of inflation on the stock market is far more minimized then it is when you have more normal or subpar normal -- or subpar normal growth rates. we've had some normal growth in the united states and across the global economy, and these tightening's and inflation pickups were very damaging. i'm not sure they will be as much if we continue to grow at this pace. romaine: you have confidence here that if you remove the fed accommodation and maybe we get some normalization in fiscal policy, meaning we stop throwing logs on the fire, that growth rate is still there? james: let's talk about next year. just look into next year. let's leave stimulus of side.

look at the untapped, unprecedented mass of savings that will bleed out to be not all of next year, but over the next several years. look at the increase in productivity. we've got gdp back to where it was pre-pandemic, with 7 million less workers. look at the profitability that is happening that is going to sustain capital spending into next year as well. we got inventories at very low levels that need to be built. there's a lot of sustainable force for growth. tom: you are closer to dearborn then me. why did you tell me to buy ford at the bottom of the pandemic? it is up 240%. [laughter] tom: i didn't -- james: i didn't buy it either, tom. romaine: there were go tom: tom: -- there we go. these earnings are going to come out, and we are going to adjust. this morning, ford motor adjusts

. romaine: referring to the forecast they are giving out, you see at least the metrics they are using with regard to ebit and ebit., a significant improvement. that's the word -- and ebita, a significant a bergman. that's the word. tom: they manage it. romaine: you are talking about margins, talking about better costs for the company, and talking about it more favorable terms with regards to their trading operations. tom: i'm sorry, i just see you on a 2021 bronco sport. lisa: i'm looking at the prices, and that is kind of key. if they are able to jack up the prices, that is where inflation is happening. the bronco is starting at $27,000. the explorer starting at $49,000. inflation has been pretty off the charts. romaine: a ford f1 50 --

tom:tom: i am trying to get a good spin, and lisa is blooming it up with the price of cars. lisa: i can hear your voice in my head. tom: seriously, this is a big theme here, and i would suggest powell knows this, corporations will adapt. romaine: good ones will adapt, and the ones that have good management will adapt. we saw that very vividly during the covid crisis and the companies that managed to navigate this coming out of this crisis, and you are going to get another test of which ceos really know. tom: i remember you in late march of last year, you were buying 10,000 shares of ford at like five dollars a share. it's tripled. tom: we did well -- romaine: we did well. nutmeg drinks are on my list tonight. lisa: he got the message.

there you go. [laughter] tom: coming up, the interview of the day. michael mckee will give us, after three questions yesterday, his three answers on the economic data, coming up. stay with us. futures -19. on bloomberg radio come on television -- radio, on television.

tom: good morning on radio and on television. lisa abramowicz and tom keene. romaine bostick in for jonathan ferro. the last questions of the press conference, but the first analysis of today's economic data. our michael mckee. michael: the fed was a surprise yesterday. jobless claims are surprised today. jobless claims rise to 412,000. the previous weeks revised down to 475,000. the significant rise in jobless claims. i do not have a good explanation. we are still way off the highs of a year ago. there is improvement. maybe this is just noise. what is important is this is the

week, this is from the week that is the survey reference week for the jobs report. it could be we see problems for the jobs report. that has been something the fed has been watching. the philadelphia fed in just a touch below where it was at 30.7. that is down from 31.5. still good news in terms of manufacturing. tom: i have to ask the root question. did powell know this data at the press conference? michael: p probably did not know the claims data and i not think the claims data would make a huge difference. tom: i am trying to boost ratings. michael: ok. some juicy stuff --some juicy stuff. michael: they told him under the table and he bought ford.

lisa: looking at this idea of job claims after we have an economic recovery. how does this beat to the fact that a number of states have ended enhanced unemployment benefits with the expectation this would use employment and push more people into the labor force? michael: i will have to research this. i know 18 states were going to end it, but i'm not clear on what date. i believe it was july 1. lisa: some of them did. i believe five of them did on saturday. it is pushing forward this idea of whether that would've intentionally affected this. michael: this could have been one of those buy the rumor things where people see the fact they will lose benefits and they will apply quickly before the benefit program is taken back. the longer term trend line -- romaine: a longer term trend line? michael: the longer term trend line, you look the number of people getting benefits, it is

down from 15.3 million the week before. we are seeing people come off the roles. the question is how quickly do they transition into labor market? that is the problem. we do not know if they're going to join the labor market and start looking for jobs. tom: you got three nonanswers yesterday to your three-part question. people are still talking about michael mckee's rudeness yesterday. what did you learn from the chairman in his delegate not -- in his delicate nonanswers? michael: it is hard to know what the numbers are going to be because we have never been in this situation before. the other thing he said that was interesting as they were going to act regardless of the markets . we saw little bit of reaction in the markets but no huge taper tantrum. tom: what substantial further progress -- what is this foolish

phrase substantial further progress? michael: i have used this line before. it is like potter stewart's definition of pornography. i cannot tell you what it is but i will know it when i see it. tom: can we say that on radio? lisa: michael mckee going rogue. michael: prices paid in the philadelphia fed go up to 80.7 from 76.8. i'm just checking to see -- that is the highest since 1979. tom: that is where i am going. brilliant. that is what we love michael mckee for, the historic perspective. that takes us to michael schumacher. our michael mckee getting us back to the 1970's and 1980's. that is a wow statistic on

prices paid. 50 is normal, we are up to 80. that is a huge surge in philadelphia inflation. michael: it is an enormous number and the inflation prints have been huge. the fed does not know either in this transitory notion is going to go away. i was amazed to see the fed estimate for inflation this year go up 100 basis points. what does that tell you? they do not know either. it is getting scary and the markets are getting concerned. romaine: when you look to the general interpretation of the dots did it provide any more clarity for you? michael: people and the fomc are getting skittish. they have this new framework. who knows how it will play out over the next six months? if the fed is truly guided by data and has to look at the inflation prints and say these

are actual data, they are going up faster than we expected, therefore it makes sense to pencil in a rate hike or two 18 months down the road. romaine: are you worried about the possibility the fed might already be behind the curve with regards to inflation? michael: the interesting thing is the fed is redefining what it means to be behind the curve. the fed says it wants to let inflation run hot, has not defined what that means, will not tell us what the timeframe is to calculate the average for average inflation. you cannot determine how far behind the fed is, but if you were to compare the fed today to the janet yellen fed or the bernanke event, the fed would be way behind. the markets are trying to assess what that means in terms of inflation pricing, breakevens, and interest rates. lisa: we have been talking about how the fed is acting as a monolith, very different to the ecb, which is more fractured.

this particular meeting highlighted increasing dissidents between members, increasing disagreement between the central bankers in united states. how does this color how you see the fed acting going forward? mike: it is a great point. it introduces a lot more uncertainty the -- a lot more uncertainty to the fed policy. if you look at dispersion of the fed funds out to 2023 is it incredible. the fomc does not know how this will evolve. it is little bit much for the markets to latch onto a particular path. that means volatility might pick up. investors should protect themselves against yields rising potentially a bunch. the fomc could shift gears quickly. tom: i will make some headlines. you are not managing for total returns. are you talking about a bond bear market? mike: the bond bear market is

here as far as we are concerned. people of gotten worked up about yields not doing much. it has been a tight trading range. if you think about yields over the course of 2021, the 10 year treasury is up 65 basis points. we think it probably ends the year above 2%. that is a bear market in my book. tom: sometimes in bonds we do not see that. the close becomes a soap opera. what will we get out of the bond market? how will people respond to price down, yield up? mike: not a very good cocktail, frankly. one concern we have had for a while is we will see in exodus from mutual funds over time. our work tells us it takes a couple of quarters. probably mid july is a good timeframe. people start to get the statements and see a lot of numbers and they say wait a

minute, this is not what i expected, i should reconsider. tom: this is the most important comment of the day. lisa abramowicz, it has been so long since we had a legit bond bear market. michael schumacher nails it. one statements rationalized, three statements you figure out how much yield you have lost over three months or six months, that is a bear market. lisa: the only argument against that occurring -- one of the arguments against that is fed chair powell was thought to be the central banker to the world and now the central banks of the world perhaps cooling jay powell. can treasury selloff and can we get the bear market without a substantial move, without rate hikes and other regions, the ecb, the bank of japan, and elsewhere?

mike: it boils down to yields are low everywhere, central banks are accommodative, can the u.s. go it alone? we think the answer is yes. the fed is not leading the way in terms of rate hikes. norway is that it is likely to hike in september. if you look at yield spreads in 10 year space, they have been wider than they are today. a good example is late 2018. the 10 year treasury was about 325. at that point the german bund was 40 or 50 basis points positive. a huge gap. yields can go higher from here. romaine: does the dollar cooperate with that general plan? mike: we have been dollar bearish. the news yesterday makes us rethink that. if you consider the relative positioning of the central banks , the fed became more hawkish, other central banks were more

hawkish. we think the dollar gets a pause, it may be a relief rally. probably not a huge bull run for the u.s. dollar. tom: michael schumacher with us. we will bring in michael mckee. how does the bond bear market change the fed dialogue? alan greenspan made clear we are wired for a fed policy to the stock market. president trump knew that well. how does the central bank react to price down, yield up? michael: to continue the metaphor come it depends on whether it is a baby bear or a mama bear. the baby bear, the fact that the prices have adjusted to where they are now is not a problem at all for the fed. it is an expected adjustment. the question is do they keep going, do they have a taper tantrum? we do not have it so far.

the five-year break even dropped off the table yesterday because there is a belief the fed will get this right and inflation will go away. tom: the pendulum of goldilocks. big bear, little bear. lisa: michael schumacher, what is the nature of a baby bear versus a mama bear? i cannot say it with a straight face. mike: a little bit less is probably the bottom line. people talk about this notion of yields rising gradually throughout the year. it is fine. that is a decent possibility. that is the point of investors looking at their statements or portfolio managers recalculating their performance. eventually the grinding bear market becomes a poor performance. you stop to look at it and say if yields come up 50 basis points over six months as opposed to 50 basis points over a month or two, the six-month

thing is a bit easier to take. it is still negative return. it is still not good. lisa: let's say -- romaine: let's say we get to a stage where we start to see correlation breakdown between the bond market in the equity market. when i say breakdown i mean return to what would normally be normal. is there still a reflation trade assuming the fed moves the way the market is looking at? mike: the narrative to consider is how much the equity market takes a hit. a classic reflation trade is long stocks. it is key to think about does the fed act quickly, does the fed throw in 75 or 100 basis points over three or four meetings? is it a much more gradual approach. it is gradual, the equity market can probably hang in. if it is more of let's try to get back in front of this inflation thing, the equity market takes a hit.

there's probably not a greater reflation trade. tom: this has been wonderful. michael schumacher, just brilliant on the price dynamics. what did you learn? lisa: i learned people are expecting a bear market and the idea of a virtuous cycle, foreign money circling back into the u.s., may not work out that way. tom: what you have at the 9:00? lisa: we will talk about meme stocks with jill carey hall of bank of america. i am curious to see what the fed's hawkish nest does to some of these fads we have seen in markets. will they become more entrenched trends? tom: she brought up the dreaded meme. give me an update. romaine: not looking too good. down 4% of the premarket. tom: that is all you will give me? no gamestop love? romaine: they are all down.

tom: can you explain why cleveland cliffs is a meme stocks? romaine: i don't know. it is all the rage with the kids. lisa: it is the idea of millennial nostalgia. tom: i have not gone. lisa: i have not gone. when you release me i will go. can i have a hall pass? tom: you have a hall pass. lisa abramowicz driving the conversation forthwith -- driving the conversation forward. the vix from a 50 level up to 18.64. it is tangible. romaine: it is still below the long-term averages. definitely something to keep an ion. the idea is whatever happens over the next month or next year, the next 18 months will be a little bit rocky. a lot more volatility ahead. tom: i just want to get.

i am exhausted about yesterday. -- i just want to get home. i'm exhausted about yesterday. i thought it was a snooze fest and then all of a sudden michael mckee is fulminating about surprises. stay with us on radio and television. this is bloomberg. ritika: with the first word news, i'm ritika gupta. officials at the fed now signal they may raise interest rates faster than they had forecast. policymakers expect two rate hikes by the end of 2023. jay powell acknowledged there is a lot of uncertainty and there is a risk inflation may be higher than what the central banks think. president biden plans to sign legislation that will make to 19th a federal holiday celebrating the end of slavery. juneteenth will be the 12 federal holiday and marks a day in 1865 when union soldiers brought word of freedom to enslaved people in galveston, texas.

in germany the head of angela merkel party welcomed president biden strip to europe and said the world's problems can only be solved with the multilateral approach. government officials say the economy could grow well above the 5% later this year, faster than the latest predictions by the central bank. gdp fell almost -- it is a milestone for china space program. a spaceship carrying three astronauts stopped with the country's new space station today. the crew will live aboard the space station for three months. they will carry out experiments. in hong kong, three top editors at the program officer apple -- the pro-democracy apple daily news -- were also arrested. there accused of breaching the sweeping national security laws.

global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ >> we have 70 plus thousand people. that allows people to move about under the cdc guidelines without masks. as more people get vaccinated we keep bringing more back. the view is after labor day our view is all of the vaccinated teammates will be back in will be able to operate fairly normally and start to make provisions for the other teammates as we move through the fall. tom: brian moynihan of boston and bank of america of the city of new york as well.

we welcome all of you on bloomberg radio and bloomberg television. good morning to bloomberg 1130 in the city of new york. romaine bostick and tom keene. we visit with someone riding high, eric adams, mayoral candidate in the june 22 primary . this has a national view as well as what we see. i was thunderstruck, and i do not know where you came in on this, but in the debate transcript i looked at, once again the fancy suit and ties, a middle-class definition of 137,000 income per year, one of the candidates said it is more like $54,000 a year. explain to me, if you are mayor, where your middle-class is. define middle-class in your new york city. eric: that is a moving target as i said during the debate.

when you looked at the united way report, 40% of new yorkers have a deficit. if you have a family of four and you're making $150,000 a year, you are challenging to make ends meet and there are many parts of the city where based on your income, your rent, and dealing with everything from student loans to tuition, this is a very difficult time for middle-class new yorkers. we have decimated the middle-class in the city and the entire country. tom: part of the decimation of the bital class is their fear of crime. we learned at bloomberg that crime is front and center. there is people talking. eric adams was a police officer. i want you to provide a distinction of your approach to nypd versus the candidates who

do not have your public service. eric: that is a great question. candidates refused to talk about this real issue of crime. they wanted to look at public safety through the eyes of a bumper sticker or a slogan. let's be clear. a prerequisite to prosperity is public safety and justice. we will not recover as a city or upon tree if we do not get this crime under -- we will not recover as a city or a country if we do not get this crime under control. no one will come as a tourist if you have children shot in crimes -- if you have children shot in times square. no one will ride the subway if you are slashed on the subway tracks. my goal is to get gun violence under control. we want to put in place a plainclothes anti-gun -- use argon suppression unit to collaborate together with our other agencies to identify who is using the gun.

stopping guns from coming into our city. deal with the mental health illnesses we are facing. we are losing quality of life. no one will build in the city if we are not safe. romaine: certainly. a prerequisite to that prosperity is public safety. so is education. a lot of folks want to know what is your approach going to be with regards to the public school system, with regards to staffing, and with regards to the prosperity of our children? eric: well said. the biggest embarrassment in this city is how we treat our children's education. education is not k-12. that is wrong. pediatricians will tell you education is pregnancy to profession. we must tell you at that -- we must make sure every area of education is handled right, from nutrition when mothers are pregnant, but also the real

embarrassment. 65% of black and brown children never reach proficiency and it is a problem education in the city. we must return a joy of learning in our schools. look at the internships. vocational training. allow the business communities to be part of the curriculum we developed in our school system. then we must get technology in our schools access to wi-fi, and finally funding should not be based on what happens in a school building. we need to look at the issues around the schools as well. romaine: is your vision centered around the public school system? eric: my vision is surrounded by lifting up excellence. if that means charter schools, public schools, private schools, let's duplicate successful schools in our city and go

across the country to do so. tom: we have 45 seconds. how are you going to manage costs in a city where costs are unmanageable? eric: our city is dysfunctional. number one, we will bring a 3% to 5% cut in all of our agencies. a $20 billion increase in our budget. we are not going to hurt those committees that were hardest hit during covid and even pre-covid. the city is manageable. taxpayers are doing the right thing by paying their taxes. it is time for us to do the right thing for government by using the dollars correctly. we are too difficult to do business in the city and that will change day one. tom: he is from brooklyn. eric adams. june 22 mayoral effort with the very unique voting. i have to get out. there is no fed meeting.

i do not know they preview on that. i look at the equity markets. i am going back to the ford motor company. is that the beginning of one, 2, 5, 30 three sets of where we are in corporate america? romaine: i think so. a lot of the laggards we saw over the previous few years have found their mojo. ford being emblematic of that with regards to the eb space and the idea they do have -- with regards to the ev space and the idea they do have a future that goes beyond combustible engines. you are seeing that and a lot of other industries. a lot of companies stepping up. tom: what you learned from brian moynihan? romaine: deposits. take it out of the mattress. help him out. tom: i am triple leveraged. i do not know. i have to clear the leverage if i want to talk to mr. moynihan. romaine bostick, thank you so much.

look for romaine bostick holding court on the close later this afternoon. we will see how the vix opens up in 35 minutes. 18.56 on the vix. the 10 year yield, 1.55%. good morning on radio, on television. ♪

lisa: i am lisa abramowicz in for jonathan ferro on this post for thursday.

"the countdown to the open" starts now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ romaine: we begin with the -- lisa: we begin with the big issue. the feds hawkish surprise. >> a big update in terms of the inflation forecast. >> we have to address the tapering discussion and the lift off discussion. >> what you finally saw was recognition. >> they did not acknowledge what we are all seeing. >> the other side is the information side. >> they have to say we see, this is more inflation than we thought. >> i would call this the bumped by reality meeting.