caroline: i'm caroline hyde. joe: i'm joe weisenthal. romaine: and i'm romaine bostick. you saw a bid come into treasuries, a modest bid come into stocks. what did you miss? caroline: u.s. cpi reports showed prices soared in june. cpi showed the same thing, but fed chair jay powell says don't worry about any of it.

the u.s. economic recovery has not progressed enough to scale back asset purchase. we will talk to a congressman who believes this guy should stay on as fed chair. the u.s. rental market making a bit of a comeback, especially in manhattan. rentals are up about 9%. we have some talk in congress as well. joe: we have hot inflation prints yesterday and today. one area that hasn't been that high but is expected to be hot -- maybe used car prices will come down -- owners equivalent rent, still well-off levels in 2019 but starting to turn up. anyone out on the rental market is probably experiencing it. romaine: i think it depends on what end of the price point

spectrum you are on kimberly -- you are on. joe: kimberly, we see in the government data it is starting to round the corner. is this going to shoot past on the year-over-year growth rate? are rents going to shoot past where they were trending in 2019, 2018? >> absolutely. over the last 20 days, we are seeing pops in high-growth suburbs in asking rent. what is behind that is improving fundamentals. there is a wizard behind the curtain, revenue management. the property managers and multifamily owners have become more sophisticated over the last decades. they have implemented revenue management principles. the revenue management software --

we are starting to see rental rates in the suburbs. construction has suppressed over the pandemic, keeping the rental rates no competition. caroline: you mentioned suburbs versus inner-city, but what about city versus city? new york, san francisco almost at free covid levels. >> that's correct. los angeles is well on its way, particularly by removing the concessions. places like dallas, arizona, north carolina, we are seeing strong rent growth. romaine: there is a lot of talk about the idea that while some price appreciation is landlords trying to make up for what they lost during the pandemic, there is also a concern that certain cities will in the short term

not get back we pandemic rent levels -- back to pre-pandemic rent levels. >> if you peel back, one thing that happened during the pandemic is small units fell out of favor. if you look at deep data, much of the occupancy lost was in 500 square-foot apartments. two bedroom apartments stayed solid. joe: go back to construction. you mentioned a lot slowed down during the pandemic. in the single-family space, it was red-hot, and now we are seeing constraints. will we get catch up expansion in the multifamily segment of housing or are they running into the same constraints single-family is running into? >> i think we will have a slow pipeline for the next 18 to 24

months and catch up will be 2024. caroline: romaine made reference that this is different on a different price point. where are we seeing price inflation rise the most? affordable housing, or is it in the middle? >> it is on the high end. that usually doesn't happen. you don't have a lot of prices on the high end because the pipeline suppresses that. we are seeing it more on the high-end than the middle markets. romaine: we brought you on to talk about multifamily, residential areas. in a lot of big cities, there has been a blending of apartment buildings with retail on the ground floor, multipurpose, whatever the phrase used by the developers. do you see any decoupling of that trend going forward or do

you think we will see builders still embrace the multipurpose building use? >> a lot of that is driven by the municipalities and their zoning preferences. multifamily developers have always embraced retail only because they were required to add didn't really expect a great return. most developers prefer not to do mixed-use. you want to be near the mixed-use, walked to the grocery store, but it is hard to make the deals work with multi use. caroline: kimberly byrum talking all things real estate. from new york, this is bloomberg. ♪

mark: i am mark crumpton with bloomberg's first word news. president biden fitted members of the democratic caucus. the get together was the president's first opportunity to make the case for his policy agenda to senate democrats as they work on a budget deal. mr. biden said "we are going to get this done." republicans are leading the fundraising race in their bid to take control of congress. the national republican congressional committee raised $45.5 million in the second quarter, topping the democrats by nearly $9 million. republicans need to flip five seats in the house and one in the senate to claim the majority.

the white house says the united states is flipping more than 1.5 million doses of the moderna vaccine to sri lanka. they should arrive on friday. the shots are being sent through the global vaccine initiative for low and middle income nations. italy is banning large cruise ships from venice to protect the site from over there is. the culture minister says the band will take effect on august 1. environmentalists and cultural heritage concerns have battled for decades with business interests since the cruise entry -- industry is a major source of revenue for the city. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. romaine: welcome back to "what'd you miss."

there was angst in the markets after yesterday's cpi inflation report. today folks got another look at cpi numbers and we got to hear from mr. inflation himself. joe: exactly right, chairman jerome powell. the message he tried to express was we have a long way to go until we are back to full employment. while inflation numbers may raise anxiety for a taper and early hikes, his messages there is still a lot of work to do. caroline: we have had this message again and again and i don't know why the market is surprised. joe: for more reaction to powell's appearance, we want to welcome congressman patrick mchenry, republican from north carolina and the ranking member of house financial services. he led republican questioning of the chairman. thank you for joining us. do you feel the fed is correctly

assessing the balance of risks? that there is inflationary pressure but there is work to do to get back to full employment? and at this point the fed is properly weighing those two different conditions? >> i think chairman powell has acquitted himself well over the last 15, 16 months when there was trepidation globally with the pandemic. that's why i called for his reappointment for another term. about inflation, economists will debate this and there will be chatter about the nature of inflation. i think it misses the point. the cost of things that average americans are buying is going up and wages are not keeping pace. that's problematic. also we have bad policy being

discussed in washington that would be far more destructive than what the fed is contemplating in their guidance. caroline: you are feeling this economy is running too hot, inflation is too high, you can't be pulling more fiscal levers? >> infrastructure, that debate is separate from the $3.5 trillion senate democrats rolled out today. that is a great deal of deficit spending expanding the size and scope of the government, additional tax increases. that is a gross reordering of government. that is a major concern for growth prospects in the medium and long-term. as a member of congress, i can't affect directly what the federal reserve does on monetary policy. we outsourced that 115 years

ago. what i can work to effectuate his change in fiscal policy. when we are growing government at a large rate, when we had a $2 trillion covid package to begin the year, and now you are contemplating $3.5 billion of additional spend, that is deeply concerning and problematic. romaine: there was an argument made by the biden administration and allies for his infrastructure plan that this is less about short-term government spending, more about long-term investment. the idea is there are dividends that would be paid back in the form of a stronger labor a market, stronger economy, better wages, better competitiveness with china. do you not buy into those arguments? >> if you raise the personal and corporate income tax, that makes us less competitive.

if we don't have labor policies that match a changed workforce, which we should be focused on, we are not going to be more competitive. we need to have a laser focus on the changed jobs market and the economic condition of the american people. we have a labor per dissipation rate at 64.5%. 9.5 million unfilled jobs. that is unchanged. that shows we have a change labor force. rather than expending -- expanding the size and scope of the government and taxing into prosperity, which is what the biden government wants to do, we should focus on growth principles that lighten the regulatory and tax burden and rein in our fiscal house so we can have long-term growth. joe: we talked to a lot of

people that are involved in business operations about inflation, supply chain bottlenecks. there are parts of our infrastructure that seem to be holding us back from the growth we would like to cease disdain -- like to see sustained. ports may not be up to capacity or we may not have enough sawmills to process lumber to build houses that could bring home prices down. do you believe that would be a proper role for government spending and would you support deficit spending if it were around capacity increasing infrastructure that made the economy more efficient and things cheaper? >> a bipartisan infrastructure package, which is traditional infrastructure, roads, bridges, rail, ports, and high-speed connectivity, i think has that economic stimulus effect over the long-term.

enhancing ports, enhancing and building roads, those are logical and good things for the society. that makes sense. to have a childcare program at the federal level does not. to have the federal government pay for college does not. i don't think those things have the same effect as capital improvements such as concrete and steel that enables people to get to work faster, or for us to do this digitally from iphone -- from my home. those would enhance growth. caroline: let's talk digital. it is more than questions about lumber and used cars and inflation going to fed chair powell, but also cryptocurrency. it feels as though powell isn't worried about the role of the u.s. thinking it is going to lose its reserve currency status. do you hold that optimism?

>> i do. we have a strong economy. we are the capital markets for the globe. we have competitive capital markets. that's why innovation and regulatory innovation is smart for us to do to enhance economic growth. it gives us international status and power as the largest economy in the world. i think that's important for us to maintain our edge and focus on innovation. the deployment of central bank digital currency is something i am interested in studying. i am looking forward to the federal court in late august -- the fed's report in late august. stable coins in the private sector could be a viable means to maintain some attributes of the central bank currency but without the civil liberty and rule of law concerns that i have. romaine: always appreciate

getting your thoughts. patrick mchenry from north carolina, republican. we will be back in a moment. this is bloomberg. ♪

caroline: kathy woods has been one foreign investor. things fading for chinese companies, at least those listed in the u.s. she feels there is going to be a reset in terms of valuation. joe: there has been a flurry of news. it is down a lot the last three months from april. a flurry of news has been negative around didi and other adrs. joining us, the founder of the

life and liberty index. you have avoided china in your indices for a while. you look to em but avoid china specifically. the delisting of the didi app, the nature of how these are structured. what does that say about the nature of investing in chinese adrs? >> we don't have any china in our emerging-market strategy. we do freedom waiting, so it is a low weight. what is happening recently with chinese adrs and the selloff should not have come as much of a surprise to investors. it comes as a surprise because maybe we have mispriced those assets and overpaid for them in the past. it has opened our eyes to the risks that are involved and

these are risks we have chosen to ignore. romaine: from a u.s. perspective, people viewed china as this honey pot, the idea you had a large population growing in wealth perfect for selling iphones/cars/whatever. dealing with the chinese government and politics associated with the economy, was that not really factored in? some ceos would say, we can deal with it, but some are saying, this is more than we bargained for. >> we have seen some comments in the media recently that are giving a hat tip to the china model. we overestimated the china model. there is 1.4 billion people, how could it not be the world's next biggest economy? it is not about labor and capital alone because if that were the case, the countries with the most natural resources

would be the richest countries on earth and that is not the case. you have to have productivity along with labor and capital and china has some of the worst demographics and not great productivity numbers. part of that is because of the command economy. there is not opportunity for people on the ground to respond to feedback loops on the micro level and allow for that spontaneous order that will help the economy to grow and innovation flourish. caroline: only a minute left, but do you think the leadership in china is willing to sacrifice economic growth for the control it wants? as big tech companies became behemoths and there became a power struggle between them and the global government, do you think they are going to see a retrench callback to protect data? >> with didi we saw the

government is willing to sacrifice to protect their own interest. in a command economy like china, the interests of the state will always come first and that is the only certainty you have. caroline: thank you for talking all things china. we have not paid enough attention to crypto today, which is a massive void in our coverage. there was a story on the bloomberg at one point authored by yourself, joe. joe: jackson palmer, the creator of joe's going -- of dogecoin, walked away from it in 2015. he did not profit from his creation he said, crypto is a sham for the rich to get richer and he is not going to talk about it anymore. once every few years he returns to twitter to complain about

crypto and today was that. he is still not a fan. romaine: are you going to be like this one day when we have joe coin? joe: when it is the unit of reserve currency but i never got any, i will be very bitter. caroline: that does it for "what'd you miss> ♪ (announcer) back pain hurts,

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emily: i would like to welcome all our bloomberg television and radio audiences for an interview with the microsoft ceo. microsoft kicked off its inspired 20 when he won conference, unveiling a cloud version of windows for remote workers as the world adapts to a hybrid working model. always good to have you on the show. perhaps the biggest headline is you are offering a new delivery system for windows, the