>> this idea that we are going to continue to compound earnings at the rate that we have is just fantastical. >> you have to see some real robust growth for much higher rates to be acceptable. >> the fed is navigating the most difficult period in its history since the volcker era. >> prices are going to be higher and wages are also higher. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone.

an important our. it is cpi wednesday, according to jon ferro, and that is in 30 minutes. i love what alan ruskin of deutsche bank publishes. he says, "risk is nervy, the dollar strong." jonathan: it would bring forward any faster discussion about a move by the federal reserve. tom: we have to recalibrate in this hour. the charge back to paul volcker is a 6%, 5.8%, 5.9%. it harkens back to persian gulf inflation, and before that, back to the 1980's. jonathan: from there it went into double figures. there is a belief that we get a 6% handle today. it sets us up for 8008 discussion going into year end.

it wasn't meant to take this long for the story to fade. we are still talking about it deep into 2021, and most likely next year. tom: have we seen it in wage growth? lisa: honestly, we have not seen it enough in wage growth. this to me is the key aspect that the fed will be watching to determine whether they need to bring forward some of those rate hiking expectations. tom: wait a minute, is it thursday? on veterans day, we slam forward claims. lisa: all economic data releases forward. tom: are there auctions as w ell? lisa: yes, a 30 year. yesterday's 10-year did not go well. it is actually fascinating right now because people do not understand why you are not seeing higher yield in the long end of the curve, and this i think will really be highlighted by today's auction. tom: i thought you meant the

dynamic between the three of us. let's move on this cpi wednesday to what it means for chairman powell or chair brainard. is that battle part of 6% inflation? jonathan: i think there's an overwhelming battle just over this stor -- this story fading. for all the people who talk about governor brainard being soft on inflation, vigilant unemployment has been the consistent story through governor brainard's career at the federal reserve. this big focus on labor market recovery. the question a lot of people from the outside looking in have, can they remain patient into next year if inflation is persistent in and around 5%, and we don't get that present patient rate growth? -- that participation rate growth? as for this cpi report, and the words of alan ruskin at deutsche bank, it is going to settle nothing. it is going to settle absolutely nothing on either side of the debate. tom: the enigma of real yields here.

let's do a longer data check. i think it is warranted. the dollar giving some strength. em shown real stresses. the argentinian peso at 100 to the dollar. turkish lira again moving back towards -- jonathan: negative real yields on tens and 30's in america. it is a big focus. equities down 10, -0.2%. nominal yields up three or four basis points in america. on the fx market, dollar strength right through em. crude, $83 $.65, up 0.6%. later today you will hear from the president of the united states. he wants to talk about infrastructure. we have talked about it repeatedly this morning. the elephant in the room. right now it is inflation in america. tom: in conversation with the

leadership of united airlines as they confront coming out of this pandemic domestically and international. joseph quinlan joins us now, head of market strategy for b of a. how do you allocate? joseph: with the increase in prices, we are still looking at materials, energies, industrials. we are still part of that reflation trade. we are looking for companies that can pass down these prices. we have seen that this earnings season. passing on prices, increasing productivity, using automation. these are the sectors we want to undoing into next year. jonathan: you want to keep the faith in the equity market. overwhelming constructive you on stocks desk constructed of view into next year -- constructive view into next year? joseph: we are because they can

handle these pricing pressures, and they are not going away anytime soon. we still like equities over fixed income, u.s. banks over the rest of the world. lisa: you also say remain low duration, with the expected yield will rise in the u.s. why haven't they risen more so far? joseph: that is a great question. you can see the yield curve flattening. fixed income markets are not convinced that the third quarter gdp print was weaker than expected. i think they are pricing in weakness into q4, but i think that as long. i think we see a stronger q4 print in the united states led by the consumer, led by capital expenditures, and a pickup perhaps in exports as well. i think we are set up for a real acceleration in growth and see that yield curve start to steepen. lisa: when can we say it is maybe more than just a distortion or just the bond market getting it wrong, and the bond market sending a message of

slower growth? i am talking about those negative real yields that reached lows yesterday. joseph: it is a negative, particularly overseas, where there is a lot of deflation, whether it is europe, now china. i do think in this negative yielding world, all roads still need to equities. if you want to return, good corporations navigating this issues for price increases and automation, that is where you want to be for outside returns or better-than-expected performance on the overall market. tom: what do you do with substantial capital gains in selected big techs? forget about the number if you are behind s&p, behind the benchmark. whatever. what do you do with the reality, i've got a gain, what do i do next? joseph: that the persians --

that depends on where are you in risk management, the outlook. what we do is kind of gradually ease and -- ease into the tax fight that is coming. but in the end, we are reinvesting in those large dividend players. you are looking for income, something longer duration, so we are taking some of these tax gains and reinvesting it in these dividends as we navigate the choppiness. jonathan: we had someone hide constructive on em a little earlier in the last hour or so. you are very focused on u.s. over the rest of the developed world. can you tell me why? why u.s. specifically? what is the rest not getting done? joseph: because the best corporations are here in the united states, whether it is health-care, finance, industry. there are great brands in europe, of course. put the emerging markets, look at the corporations. they are struggling.

they are being competitive against the japanese electronics company, a german car company. their corporate gain in the em space just doesn't measure up to the best in europe, the u.s., or japan. just watch china. china is usually important, a big part of the index to drive the demand story. lisa: when you see clients, what do you tell them when you say what kind of returns they should shoot for with the balance of risk and return? joseph: don't get used to the last three years. the last three years have been phenomenal with equities. normalization, reversion to the mean, real returns for percent, 5%, 6%, you get that from dividends, more of the usb and diversified.

-- the u.s. being diversified. we are setting expectations from now until 2025 that the last three years were an anomaly in terms of returns, the economy, the pandemic, and now to get back to the basics, so to speak. jonathan: what a couple of years it has been. joe quinlan of bank of america private bank. a 25% gain on the s&p 500. tom: it is hard to keep perspective. when you look at the wei screen on the bloomberg, ben laidler and others have been double digit enthusiastic, but the great missed call of the last number of years, even more than a decade, has been the certitude that it is a single-digit world. that has been crushed. jonathan: i thought there would be this big deleveraging story. we have delivered, but largely because profits have recovered so quickly. i expected people to really pull

back on the growth stories, really pull back on capital return efforts, and it hasn't developed in the way i thought it would. tom: where i see that is in the automobile business. you stand on any street in new york city and look at the new auto burg wheels out there. $40,000 is an average new car now? the consumption, the pullback is there. jonathan: have you ever seen a rivian on the road. tom: no, i wouldn't know it if i did. they are not on the road, right? jonathan: they just started delivering a couple of months ago. what a story. lisa: i wonder how that is going to do in 2025. jonathan: we will see. we will catch up with the ceo of the largest ipo of the year so far a little bit later at 10: 10 eastern time. ed ludlow sitting down with the ceo of rivian. we will speak to the bnp paribas ceo in a moment. looking forward to speaking to

jean-yves fillion. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. we will get the latest u.s. inflation figures a few minutes from now, expected to show that consumer prices have risen 5.9% in the last year. that would be the fastest pace since 1990. supply chain bottlenecks lead to high gas prices across the region. president biden and china's xi jinping will hold a virtual summit next week. no specific date has been set. ties between th world's two largest economies have increased in the last few months. washington is concerned about beijing's expanding nuclear arsenal. electric vehicle make a rivian has raised about $11.9 billion in the year's biggest ipo. rivian is backed by companies such as ford and amazon.

tesla shares down for a fourth straight day, cutting more than $250 billion off the carmaker, and $50 billion off of elon musk's personal fortune. he is still the world's richest person. a group being spear mapped that's being spearheaded by denmark and costa rica is set to announce new members today at the climate talks in glasgow. the u.k. says it is not joining because ending fossil fuels could cause a cliff in supply. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

jonathan: your economic data and

america 12 minutes away. good morning. your equity market down nine, -0.2%. yields are higher through the curve on twos intends -- twos and tens. $83.69 on wti. in foreign-exchange, euro-dollar mega 0.3%. -- euro-dollar -0.3%. tom: i just noticed the important article on class a and class b apartments. rents, class b apartments, not as fancy, up 15%. jonathan: is it stickier? that is the conversation we will have an about 15 minutes. tom: jean-yves fillion is ceo of bnp paribas usa.

he has carried forward the heritage of bnp paribas from roland garros almost 15 years ago, where it is safe to say he and his bank brand and own the sport of tennis. the only equivalency i know is what barclays did in premier league years ago. you have had a bang up year in the branding of tennis. what will bnp paribas do in 2022? how do you carry forward the open in indian wells and bring it into your banking business of next year? jean-yves: well, thank you so much for having me on the show. tom, you differently follow and no tennis extreme new well. you mentioned indian wells, which we managed to host in 22 anyone, which we could not do in ash in 2021 -- in 2021, which we

cannot do in 2022. it was amazing to be back in business, and the bank has tennis in its dna, and the plan is to have indian wells in 2022 in march. it is the season opener. a lot of fans, and the values of tennis fits quite well with the value of the bank. we say it is a global sports. the bank is a global bank. it is all about sportsmanship, personal bergman -- personal improvement. it is a sport that you can really develop and follow around the world, and this is why we like the game. jonathan: let's pick up on that line you just mentioned, the bank is back. are the employees back? is it business as usual? can you help me understand how things are evolving, how things are normalizing? jean-yves: absolutely. we are really asking, and more

specifically, incentivizing our staff to come back. we have to acknowledge that the digitization of our economy during the pandemic has allowed us to stay in business, stay connected, including today. i love being in the studio. i look forward to being back with you in the studio hopefully in the months to come. having said that, nothing replaces the in-person relationship. conductivity -- connectivity, this is what we do. on the east coast, in our building in -- in manhattan, we are targeting 40% by year-end, and hopefully early in 2022, 60%. we are trying to make the office attractive to make the time

effective. we have to provide value for employees to enjoy being back on premises, and management is very focused on it. jonathan: they want to be paid more. we all care about this business. it is great is it people on trading floors again. something has got lost with this younger generation. they don't want to be a part of it in the same way. how are you grappling with that? does the price get it done? jean-yves: it is one of the major challenges and concerns. there is tremendous competition for talent, and within the banking industry, competition comes from outside of the banking industry, and it is in some very targeted areas. you mentioned in corporate banking, there is very high demand. i can imagine it is new technology areas such as cyber and ai, and it is in retail.

we have a retail bank in the united states. retail is experiencing tensions in terms of strong competition for some positions. how do we deal with it? first and foremost, it is about remaining competitive in terms of compensation. that is absolutely critical. but it is not only about compensation. it is working for a company that has a purpose. bmp will focus on sustainability's. -- bnp will focus on sustainability. much of the younger generation is looking for flexibility, and a lot of digitizing the business , and we have to make the workplace attractive for people coming back here. it has to be for a real value. lisa: especially as you expand in the united states, i wonder how you compete with the likes of jp morgan and the oligarchy of u.s. banks at a time when

everyone wants a piece of the u.s. dynamism. jean-yves: that is very true, and for a bank like bnp paribas, which is a leader in the euro zone, and as you know, we have a very large platform with the united states, we have eight efforts if i business model, a retail facility, a wholesale facility. but to be successful as a u.s. bank owned by a european leader, you are a target. this amazing recovery that we think will continue in 2022, you have to really realize what kind of value you can provide to clients, and this is what we have done with our wholesale activities. we can be quite effective with u.s. clients who not only have a business model in the united states, but are becoming much more international and

benefiting from the u.s. growth, but european expansion we see happening as well in 2021 and 2022. jonathan: forgive me because i only have 60 seconds on the clock, but we get inflation data in the u.s. in about five minutes. what is your take from the companies you serve? what you learning about the price pressure in america? jean-yves: first and foremost, i am learning that they are really very optimistic about the expansion. the recovery we face will carry on in 2022, and i see them investing. i see them positioning themselves more for capex investment. inflation is a concern for sure, but we believe with the supply chain disruptions, normalized hopefully in 2022, that is not

the biggest concern, particularly with such gdp growth that we are experiencing in this country. jonathan: thank you, sir, as always. it is good to catch up. jean-yves fillion, bnp paribas ceo. your inflation data just minutes away. reaction with neil dutta of renaissance macro.

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jonathan: inflation data in america seconds away. for our audience worldwide. yields are higher. the data starting to pour out. taking a look at it is mike mckee. michael: here are the numbers everybody is waiting for. a big beat on inflation, up .9%. the core is up .6%. significantly higher than forecast in more than double what they were in september. that poses year-over-year cpi to 6.2%. the cpi goes up to 4.6%. as jack nicholson said in "the

shining," this will get their attention. the people on wall street will not like this number at all. i imagine a lot of this is energy. energy up 4.8%, gasoline up 6.1%. the food index up .9%. a lot of the comforts are the same ones we have seen. poor up .6% -- core up .6% on the month. household furnishings, recreation, all went up. airline fares and alcoholic beverages, good news for tom -- among the few that went down for the month. jonathan: mike is taking digs that you. the top line is we have a six handle in america on inflation. down about .4 on the s&p, down seven on the nasdaq. yells at the front end up six basis points.

on two we advance 50 basis points it is a bigger move back to the belly. on threes of eight basis points to about 80. this was a bigger than expected upside surprise that adam ruskin talked about at deutsche bank. you need a big one to get people to think it mattered. no idea if this fades or not. that is the only move off the back of the inflation print. tom: we are back to july of 1982 on topline inflation. jonathan: the president speaks later. is this a bigger one for chairman power president biden? with the chairman does it change anything? for the president is this more immediate? tom: no question this is a clinical discussion and it should be a political discussion. forget about the oil and hydrocarbons. i get all of the theory that theoretically we are spending less on hydrocarbons than we did at the time of the vw diesel.

the bottom line at the meat counter, but where it will really see it is in the paycheck and that is rent. jonathan: and the president cannot do much about it. right now the chairman of the federal reserve, does it change anything for him? michael: he has expanded the definition of transitory to be a while, not necessarily the end of the year. a lot of people are predicting this will keep happening. the thing that has to worry the fed is if you look at one of the major contributors, that is owners equivalent rent, the way the cpi measures your housing costs. this has been something we've been watching for quite some time. up .4% on the month for the second month in a row. shelter is 24% of the overall cpi. that is one difference between this and the pce, which the fed follows more closely.

the shelter costs play a much bigger role. in this case they are starting to contribute to inflation. the other thing you look at is used cars. they are going up. they are higher over last month. that is also putting pay to the idea of transitory in the short run. lisa: the inflationary pressures have been multifaceted. i wonder how long the demand boom can last if wages do not keep pace? we do get a read on the average hourly earnings and they came in lower than expected, -1.2%. the idea is wages are not keeping up. what does the fed do with that? michael: the fed is not going to be concerned wages are not keeping up as long as the forecast for inflation comes true and it starts to decline in 2022.

if wages were continually trying to get ahead of inflation, then you would have awake price spiral. the vet does not have to worry about policies whereas joe biden does this looks bad, the idea prices are outstripping the races people are getting. the key thing is this is happening in very visible categories, food and energy. the fed looks past those because they know they are not something they can do anything about. the average american does not. jonathan: looking forward to the conversation later. if you want to understand the reaction of the federal reserve, mike speaking to mary daly later on today on bloomberg tv and bloomberg radio. 11:00 eastern time. in america inflation accelerating at the fastest pace since 1990. year-over-year we have a six handle on u.s. cpi. tom: interesting to see on monthly basis, we go back further.

what we need to do is remain calm. we welcome neil dutta, head of u.s. economic research and renaissance macro research. you are the king of transitory. why is 6.x% inflation transitory? neil: i do not know that i am the king of transitory. we have been telling clients inflation is going to be getting worse before it gets better. today's inflation data vindicates that. if you look at this, this is somewhat worse under the surface than it is on the surface. i am looking at my bloomberg. we still got a beat despite no contributions from airfares. airfares were actually a drag. it is hard to see how that keeps up considering the travel situation, which is beginning to heat up.

if you look at interest for flights, there is increasingly demand for travel. it is unlikely we see a repeat performance on that front going forward. i still think there is a decent amount in the pipeline for used car and truck prices. the big story is inflation. i do think the fed has a story to tell. it is not what the inflation is doing. it is what will the fed do about it? i think jay powell is not ready to do something about it. jonathan: sorry to jump in. when we get to q1, and as i listen to you it seems to be getting broader and stickier, when we get to q1, if we are still in this position and unemployment could drop to a three handle, how do you think

communication evolves around that? from your understanding of the reaction function of the fed? neil: i think that will keep the door open for rate hikes starting in the second half of next year. the fit is a slow moving entity -- the fed is a slow moving entity and our institutional constraints. think about what jay powell said last week. you had folks like worrell and randal quarles saying if the next prince our firm we may have to shift the timeline for rate hikes and maybe speed up the tapering process. jay powell put the could botch on that topic last week. they locked themselves in to a steady pace of tapering over the first half of next year. we are talking about substantial acceleration and employment

activity between now and the end of the year. we are seeing acceleration in nominal growth. guess what? the fed is still -- it just tells you how slow-moving the fed is. i think labor supply is going to come up and i think the fed will have a good story to tell. they will continue to stick to that. the risk is there is more of a shift in policy sometime later next year. lisa: let's say the data continues to come in and the fed feels like it needs to hike rates. how high can rates go given where the economy is and how much debt we have incurred? neil: that is the issue. if you look at the pricing in the forward market, the curb is so flat. if i'm interpreting the market correctly, it is less -- let's hike twice and be done, which raises the question why hike at all? to me the back end of the curve

looks very mispriced. there looks to be a significant amount of momentum in the economic situation. demand is running strong and continues to run strong. you mentioned about how real wages may slow demand. that is unlikely in my view because aggregate incomes are surging. it is not about what people are making, it is about how any people are working, how long they are working, and their hourly earnings. if you add up the product, that is growing 10%. that is a rough proxy for nominal gdp. now we need to think about will be the distribution of that growth? will it be 6% real activity in maybe 4% inflation? will it be 7% real activity and 3% inflation? at a minimum, the fed will be having to revise up their inflation estimates for next year. one of the things we've been seeing is when you look at the

median expectations, they have always been expecting inflation to slow down to 2%. there has not been this capitulation from the fed on the inflation story. i would not expect that in december. i would not expected in march. if anything the composition of the fomc is going to change. i do not think biden will put people in who are going to adopt a more hawkish response function to the data as it is coming in. jonathan: love catching up with you. the perfect guest to talk about this. neil dutta. tom keene, it is a six handle. tom: back to 1990. 1982 before that. jonathan: the airline ceo scott kirby in about 30 minutes. looking forward to that on tv and radio. this is bloomberg. ritika: the governors of

michigan and eight other states want congress to approve aid for american semiconductors. they're trying to ease a shortage that has hurt manufacturers. the governor sent a message to congressional leaders asking for $52 billion. the question of whether president biden's tax and spending package will be fully paid for has gotten complicated. the administration estimates that a better funded irs could bring in $400 billion over the next decade through corporations and the wealthy. under the budget rules government analysts cannot cap money that will be spent. democratic moderates have been asking for a cost analysis. ge has launched an offer to buy back as much as $23 billion of debt. the company is on target to cut its borrowing by $75 billion next month. ge unveiled a plan to split the corporation into three companies. doordash has agreed to its

biggest purchase ever. news of the acquisition came as doordash posted a 45% increase in revenue in the third quarter. 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. ♪

>> what i'm telling you now is who i am. do you think having a d or an i

or an r will change i am? i do not know where in the hell i belong. tom: joe manchin, a democrat from west virginia front and center. this was a conversation that received worldwide headlines tonight at 9:00 you will be able to see it in its entirety. david rubenstein with a senator from west virginia. mr. rubenstein joins us in berlin. we are thrilled he can take the time out to have a conversation. we are who we are. this is the star football player whose career ended early in this is someone who was ever framed by the horrific mining accident of farmington, west virginia in 1968. who is joe manchin and what to the washington elite not understand about him?

david: i think they do not understand that he is in a state that is heavily republican. he is a democrat with the democratic governor. the state went for president trump overwhelmingly and i do not think you can expect him to be doing whatever the democratic party leadership wants. he is a democrat and he will not switch to being a republican, but he is very independent and not dependent on the democratic leadership for his power base. tom: do you sense that he is enclosed conversation with democratic moderates who were shellshocked after the election? david: yes. absolutely. i think he is saying to them, and i think he believes that the election in virginia showed you can go too far to the left and that is what he thinks probably happened in virginia. what he is trying to do is to say we do not have these

policies there spending a lot of money. he believes strongly in not giving people handouts or gifts from the government, and we should pay for some of the things we are trying to get through legislation. right now we are not paying for it. he does not favor increasing taxes. it would favor not having these programs. he is a very personal -- personable person. he is very intelligent and engaging. he just happens to have used that are more conservative than the democratic party leadership and more conservative than some of the people in washington would like him to be, but he is reflecting his constituency. his constituency is very republican. he could probably win the state if he switch to republican. he is very popular and he is also trying to reflect the views of his state. lisa: does he enjoy his power? david: i've met very few people

that do not enjoy their power in washington, d.c. i would think he does enjoy it. he does not run around saying look how powerful i am, but if you are as powerful as he is, and i do not think i've ever seen a person not in the leadership has as much power as he has, he has much more power to affect the outcome of major legislation than anybody i know other than a majority leader or minority leader, enormous amount of power. he probably does enjoy it. lisa: does he plan to use it to launch it is something else politically, say president? david: to be realistic about it, i do not think that can happen. he is now in his early to mid 70's. while that is young for some presidents, he would not be that attractive to the democratic party primaries because he would be too much of a moderate to win in the primaries and i think it is unrealistic.

he is not likely to run again for governor. i think he is happy in the senate. i think he will stay in the senate if he runs for reelection. he will be up in two years. he has not announced if he will run. tom: you studied and lived at the path from mr. jones to mr. welch and onto what we have with larry culp at ge. your thoughts on the end of ge as we knew it? david: it is a sad situation for american corporate life. you might think about it that way. this was one of the most powerful companies in the world when jack welch was running at. it seemed to be the most impressive company in america and now the company is being broken up. larry culp -- if his conclusion is the best thing to do to break it up it to unlock value, he has

probably made the right decision. it is unfortunate but no company can stay as big as ge was forever and has to make changes. they did not make changes quickly enough and that is why they have to do what they are doing. lisa: do you think and 10 or 20 years will be saying the same thing about amazon? david: there are few companies that stay at the top of the world for as long as ge did. amazon could be one of them but amazon is still a young company. there is no doubt there will be more companies that we've not heard of that will be the dominant companies in the world. 20 years ago who heard of amazon, tesla, even apple was not that big of a deal or netflix. the world changes. that is one of the great things about capitalism. you can start a company and make it a powerful company. amazon will be around for quite some time. tom: david rubenstein. "pure conversations -- peer to

peer conversations" tonight with the senator from west virginia. i am looking at this inflation. i know you are very young in the 1990's. you had memorized the over of of wilson phillips. i know you had memorized all of the songs of wilson phillips. number one when we last saw inflation at 6.2%. lisa: i have no idea what you're talking about. what i do know you're talking about is inflation, the idea we are going back to a very different time. i wonder how much this gets the fed's attention, the idea fed policies are quite directly affecting the cost of housing based on low mortgage costs fueling some of the housing dynamism we have seen. how much does the fed recognize this and start to get concerned, start to bring things forward? i also wonder about the real wage growth and think neil dutta

was great on that. is wage growth enough to overcome some of this inflation we are seeing in the market? right now i do not know. the flattening yield curve seems to suggest that is still an ongoing question. tom: in terms of a pandemic they have to get out beyond the next 12 months. in the meantime, they have to prosecute policy. lisa, they have to keep confidence up. these politicians are not trained, including the fed phd's are not trained in confidence in inflation numbers like this. lisa: confidence to who? is it just the consumers? or is it businesses? we saw that small business optimism take a dive. how do you message to someone who is living it, to someone who is grappling with it and not expanding their business because of the challenges? tom: i did a michael mckee redux.

it is amazing when you see what poultry and eggs are doing. speaking of michael mckee, more than timely and expensive san francisco with nearly five dollar gasoline. michael mckee and mary barra -- and -- later on today. this is bloomberg. good morning. ♪

tom: cpi -- jonathan: cpi coming in hot. your equity market softer, negative one third of 1%.

the countdown to the open starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. jonathan: from new york, we begin with the big issue. more fuel for the great inflation debate. >> inflation. >> inflation. >> inflation in general. >> come along does is elevated inflation last? >> transitory could be at least another year. >> what is the fed going to do about it? >> the dynamic is complex. >>