>> welcome to bloomberg markets. the s&p 500 soaring to a session high even with potential potholes ahead such as the cpi print. the fed minutes in just a bit in her kate middleton. it's get a quick -- just a bit and hurricane milton. up 6/10 of 1% now close to its all-time high. the nasdaq 100 up 7/10 of 1%. a few stand out stocks like

palantir and nvidia. otherwise a mass session for most of the stocks under the hood. five basis points between the two and 10 year yield. the two year yield is looking close to the 4% mark. mid-day movers on the equity side. alphabet shares falling on antitrust concerns. the u.s. justice department adding to a googles regulatory challenges. a filing outlining. the agency is considering forcing googles to sell off part of its business to mitigate its dominance in search. nvidia has been swinging between gains and losses. down about 2/10 of 1%. huge volume. it is making an effort to continue its rally for a sixth day. three times the volume of its next most traded stock. up 12% in six sessions. down 2/10. alibaba down 7/10 of 1% well off

the lows we got a headline a few moments ago there is a pboc policy paper that suggests there may be additional bonds. mainland china stocks sold off after the pre-golden week euphoria. the next potential catalyst is a ministry of finance be thing saturday which may reveal new fiscal measures and new details on bonds as well. >> i have always been among those who believe the last mile can be the most difficult because now you are trying to get from something in the neighborhood of 3% inflation to two and over what time can you do that and still ensure the public believes you will get back there? that those inflation expectations stay anchored. i remain focused on where we are with the current inflation dynamics. vonnie: to the federal reserve, former kansas city fed president esther george speaking at the citadel securities will macro conference in new york. we have those fed speakers today

and the september fomc meeting minutes in less than an hour which may shed some light on the thinking behind the fed. it's bring in michael mckee, bloomberg international economics and policy correspondent who will be breaking those minutes later on from the fed. do think there is anything martial -- anything marginal or extra we might learn from today's minutes? michael: it will be interesting perhaps more so than the and it's usually are because we will be able to get a sense of how many people were on one side or the other and how it came together to do a 50 basis point cut. why they thought that was important and what they thought the economy would get out of it. everybody on wall street once to know what we might learn about what they are going to do next. what markers are they looking for and what kind of policy options are they considering. is another 50 something that is even on the table?

vonnie: we know mick millman dissented and she has spoken since then to we don't know other discussions went on around choosing the 50 basis points and we know fed chair powell can have quite the strong voice himself. since then there has been no consensus on whether that was the best move for the economy or not. michael: there is no consensus but everybody seems to have accepted it as a reality and the fed has done that and it does not mean the economy is falling off a cliff. the data have been pretty good. the question going forward is does the economy need another 50. is the fed in a hurry to get to what they think the neutral rate might be or are they willing to take it step-by-step. we heard from the dallas fed president saying she is in favor of step-by-step. we will get a sense over the next couple weeks of whether the rest of the fed feels the same way and go into the next meeting

with a good idea of what they will do except for the fact we get pce numbers and jobs numbers while they are in the blackout period. vonnie: we have tomorrow cpi print and friday, ppi. what would we need to see tomorrow in order for anybody to make up their mind on something to be more decisive on what the next move should be? michael: if we had a surprise in the cpi as we did with the jobs report, that would scare a lot of people if inflation suddenly shot up but there is little chance of that happening. economists are good at forecasting what will happen to price indexes. it does not mean a whole lot except for this. if we get the numbers they expect with a slight decrease in inflation and gives the fed permission to react to the employment side of their mandate. as long as inflation is going down, they can pay more attention to the employment side

although they will continue to repeat the idea they are looking at both. vonnie: balance of risks. he will be back at the top of the hour for those minutes. turning to hurricane milton, florida governor ron desantis spoke earlier about the state of the storm. >> hurricane milton is still a major very strong hurricane. it is currently a category four hurricane with maximum sustained winds of 155 miles per hour. that is a whisker shy of a category five. while there is the hope it will weaken more before landfall, there is high confidence this hurricane is going to pack a major punch and do an awful lot of damage. vonnie:vonnie: it is also notable government responses to hurricane helene and milton have come a political point of contention between governor desantis, former president trump and the white house.

we are joined by bloomberg reporter michelle jamrisko. we heard from of the harris side ron desantis did not want to take a call from kamala harris. we heard from donald trump this might disproportionately affect states where he is doing well. what is the state of play when it comes to the campaigns and the hurricane? michelle: and inevitably the politics is creeping in. all sides are saying that should not be politicized. this is a disaster zone. an unprecedented disaster coming on the heels of hurricane helene and everyone needs to put their nose down. as you can see, there is this debate from the trump side where he is going to the storm ravaged areas already and saying the resources are in adequate to he has faulted divided harris administration, particularly biden for being away in delaware during the first storm and you see these politics around who is aware and how is this being addressed as well as a lot of battles over misinformation and

the white house has been clear on this in terms of calling it un-american to biden saying trump -- biden saying it is an american how trump is calling out falsehoods about whether the funding is being used for migrants which are false claims. the bottom line being both trump and harris are fighting over who is dealing with this more responsibly. who would deal with it more responsibly as president so you cvp harris in an unusual position as her official capacity as vice president joining the briefing happening now at the white house but she is joining it virtually but having to answer for how she would address these things and why she would be in a better position to address a disaster like this man trump. vonnie: we don't know the full impact of this current storm yet but it could be pretty bad. do we know how fast campaigns can make sure and states as well

can make sure people can vote if they need to and everybody has the identification they may need or what documents they may have been able to bring with them from their homes? michelle: it is a very open question. the states all have rules and some have been revised even since past election cycles on how to early vote and what the mechanics of all that are up to their is the hope the storm ravaged areas can still conduct business as usual and get the word out to voters as to how to vote and it will be done seamlessly in the way they plan. vonnie: that is michelle jamrisko in washington, d.c. coming up, hurricane milton do to hit some of the most populated areas in florida. what is happening on the ground and what will the long term impact be on real estate in the economy. this is bloomberg. ♪

vonnie: this is bloomberg markets. this hour we are tracking hurricane milton now a category four as it barrels toward the coast of florida. we are joined by abc news reporter rena roy. officials say this could be the storm of the century. how are conditions? >> officials are urging people in this area to take this storm seriously. they say it could be the storm of the century in florida. the wind is already picking up. the rain has been picking up consistently. you're expecting milton to make landfall sometime between 9:00 at 11:00 sometime near sarasota.

things are fluctuating. the big message from officials is that time is running out to get to safety for people who were in mandatory evacuation zones on the water. a lot of people have listen to those warnings and for those who haven't come authorities are mining people of all the shelters across the state. the big concern is high wind and storm surge. we could see up to 15 feet of it in sarasota. vonnie: do stay stay for and we will check in with you again. rena roy of abc news. milton comes on the heels of hurricane helene. another storm the region is still recovering from with more than 200 dead and an estimated $47 billion worth of damage. any homes have been destroyed with more feared to succumb to milton to a comes amid a nationwide housing shortage. for more on the long-term impacts, we are joined by ken johnson, a real estate economist

with expertise in the state of florida at he has the walker family chair of real estate at the university of mississippi. abigail doolittle joins us too. when you're looking at the storms and it is just approaching and making landfall and we don't know how bad it is going to be, how do you model it out, the best and worst scenarios? ken: there seems to be two possibilities, the storm goes mostly through cap and orlando or it jogs a little further south and that it is going to go across an expanse of florida that is not that populated in the damage will be far less. abigail: what hurricanes are you thinking of comparing this one too? ian or we heard vonnie talking about this could be the worst hurricane of all time. if you and was sick -- if ian was $65 billion of damage, what are you thinking around milton ahead of its landing? ken: if milton stands on the eye for corridor, this will be the

most expensive hurricane that has ever hit florida. maybe the most expensive in u.s. history in terms of devastation and destruction check the hopes are that it stays a little farther south and goes across a part of florida where there are not that many inhabitants. if it stays on the i-4 corridor, we probably have a much more difficult issue to deal with. hopefully it will lessen as it comes on shore. abigail: whether it goes on the i-4 corridor or go south, clearly there is going to be a lot of devastation. that tragic humanitarian devastation. what does that do to affordability because we have an affordability crisis in housing. is that going to take a ton of supply offline? ken: absolutely. that is the greatest worry. if we use ian as a model, as milton comes on shore, the devastation and destruction will take housing units out. the most immediate impact will be in rental. we will see a spike in rents

where we look back two years ago after ian, multifamily housing was renting at a 12, 13 and 14% premium in the areas of coal springs, northport, tampa. orlando was very high too. today these are back down to almost neutral. they are barely at a slight premium 1%. after milton they are going to go back up. housing prices is harder to save. modeling after ian, housing prices stopped going up which is not a bad thing in florida. vonnie: how long does it take for prices to drop like that because the longer-term impacts would likely be it is more expensive to end up living in place like this in the eye of a storm or insurance costs are more expensive and potentially it drives prices down but those that take a long time -- but does that take a long time? ken: the chance of the prices going down in florida pretty small nevada the pattern, the

matter the path milton takes. the demand to live in the state is growing at an exceptional rate. we have been hit roughly by 300 tropical storms in the last 100 years and often it is predicted florida will not regress but people like to come to florida. strong economic climate. people love it in florida. they keep coming to florida. short-term this presents problems in terms of affordability. you are looking at -- we still not back up to speed in the southwest florida region. you looking at a couple year rebuild. michael: are you really -- you and is -- abigail: you anticipate of my next question in terms of people moving to florida because florida is the area we have had such an influx or migration out of the north to florida. you are saying you do not think this will have an impact and does that mean there is not going to be an economic growth impact on florida either? ken: the question is do we get

smaller or do we just grow less fast. i think that is the latter of the two pick people -- every time there has been a major hurricane in florida, there been predictions people are going to start weaving away from florida and that has never happened. it might slow down the overall growth for some time but this is not going to be the end of the sunshine state by any means. abigail: thinking more nationally and that is good is not going to be the end of the sunshine state. what is the contingent effect on insurance because it is interesting insurance cost could soar if it is $65 billion or more worth of damage. is that going to raise premiums for people in oklahoma or in new york? ken: the real question is who ensures the insurers and the reinsurers and those are most international in nature. there won't be a direct impact.

however, you will see an indirect impact and higher rates depending on the destructive nature of milton to that is true of all devastation. something that goes on in japan has an indirect effect. vonnie: ian was only 2022 so these things are happening more and more often to is florida better able to handle something like this that some of the other southern states that also see this weather event quite regularly? some of the gulf and panhandle states. ken: you would think so because we have the most practice at it. i hate to say it that way but we are pretty used to storms. this one in particular is very problematic. the size and scope of this is phenomenal. we are nervous about this. we are probably a little bit better at the cleanup. we have done it several times and i think when i say we i mean

the state of florida will bounce back quickly. vonnie: let's hope the human impact will be minimal as well. thank you for joining us. ken johnson my from the university of mississippi and our thanks to abigail doolittle. coming up, two new etf's taking advantage of alternative assets in just a month into trading, they will be the topic of our weekly etf report. this is bloomberg. ♪ . (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management.

vonnie: this is bloomberg markets. time for the weekly etf report. we are looking at two new etf's launched by palmer capital management based in kansas city and listed on the new york stock exchange in september. they focus on clo's. joining us with more is christopher long, chair, ceo and founder of palmer squared.

talk to us about the motivation behind these two new etf's focusing on clo's and the appetite that must either or you would not have done it. christopher: we have had so much demand from our wealth management client base to bring these two market. the reality is it is a great risk return product. one that investors have traditionally only had in the institutional market and our desire was not only to work with existing clients who want this return stream but expose ourselves to a lot of other investors where we know this product will add value. vonnie: demand for clo equity and general risk appetite is growing and continues to grow and you pointed that out yourself but what is in these -- is it cre? christopher: quick question. when you look at the end of the day, with the investor is getting is corporate america.

it is a diversified industry set of rank loans. first to get repaid. top of the capital structure. if you look, there has been almost no defaults dating back to 1994 so the corporate america exposure and bank loans in particular which offer a lot of protection and set within a clo are honestly a great exposure for anyone looking to get premium yield in portfolio with low risk. vonnie:vonnie: i know your ps qa is rated aaa and aa by your own cla debt index. psq -- psq oh is focused on value across corporate and structured credit so there is differentiation between the two. where are you seeing the more demand? christopher: we have had a tremendous amount of flow already. i would say with our psq oh which is more of a multi-asset

play, investors like our ability to be active, to move across aaa clo's, and of course the whole corporate market. as these markets get more volatile, we have a lot of items coming up on the agenda hopefully people will tune in to your show for but clo's have long shown they can withstand those and thrive in those periods of volatility. we are providing diversified exposure along -- across structure credit we think is important for investor portfolios. vonnie: you definitely have the reputation but how do you compete with others that are also lunching these types of etf's? it is not something we have seen before. christopher: number one, two or three in the world every year as far as clo issuance. we are one of the most active traders of everything from aaa clo's to clo equity. long distinguished track record

so we believe our senior team, our investment process and we have been able to outperform absolute and relative benchmarks for a considerable time. we have such confidence in our team and we are so thrilled literally every investor can access what we are doing with psq oh or ps qa. vonnie: anything we should worry about now that these types of things are in etf wrappers? christopher: i would say from a risk return perspective, ironically right now, the risk side is going down to as you look at the fed on a path to reduced rates, it is reducing borrowing costs for companies which is improving interest coverage ratios for bank loans and corporate america broadly. you are seeing an increasing picture of america in this environment of what was already a low default situation. i have the utmost confidence investors and flows are going to

come into products like palmer square in considerable fashion going forward. vonnie: christopher long, ceo and founder of palmer square up should things for joining should coming up, more turbulence for boeing. this is bloomberg. ♪ it's our son, he is always up in our business.

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vonnie: welcome to bloomberg markets. what's get a quick check on those markets. we are definitely off our highs of the session should with the s&p 500 and nasdaq 100 are up more than half a percent a piece . most stocks in the s&p 500 are higher. if you look at the map, it is green across the board except for energy. small moves except for a few standouts like pelletier which is up more than 3% towing -- more than 3%. it is a lot of small gains and

small declines. look at the two year yield. we have crossed the 4% threshold. the 10 year yield at 40569. the all-important inflation data tomorrow morning and the fed minutes in just a little bit should give us perhaps another clue as to how we should think about this economy. it has people scratching their heads right now. the geopolitical turmoil. president biden and benjamin netanyahu having a call a little while ago should we will get the readout later on in the afternoon. that may give us insight into the geopolitical risks. let's get to midday movers. abigail doolittle joins. abigail: let's start off with a stock moving in the opposite direction of the s&p 500 and the nasdaq 100. google alphabet down 1.9%. this as the department of justice is asking a judge to consider breaking up this

company on antitrust concerns. shares lower responding to this. dan ives, the well-known tech analyst saying despite the fact this overhang is out there, it is unlikely to happen. one area of strength for markets, the cruise operators, we did get an upgrade at city to buy norwegian cruise lines. shares of 10.2%. the best day since february. the analysts saying the whole space there is catch-up potential, they are below their pre-pandemic highs and this analyst at city things the growth could strengthen from 2025 on. finally were mentioning boeing. take a look at shares down 2.6%. the labor union negotiations apparently not going very well. they broke off altogether and so the strike continues. another overhang or headwind, no pun intended for the shares of

boeing. vonnie: thank you for that and let's get more about the boeing labor strife from julie johnson, bloomberg news senior aerospace reporter. talks are off and it appears to be a stalemate. boeing is in a little bit of a pickle. how does it move on given the 30% rise was not accepted by the labor union? julie: pickle is probably an understatement. i was just thinking through the many pressures on boeing this morning and hurricane milton comes to mind with the snp warning yesterday around potential downgrade to junk status in the next few months. the union and boeing have been going back and forth and i think the issue is not so much that 30% proposal. it is pensions. union members have wanted boeing

to reinstate a defined benefit pension plan the company took away as part of the 2014 deal that was immensely unpopular so there is some payback going on right now. that might be a bit of a tall order. pensions in the u.s. have generally gone away and it would be tremendously costly for boeing to reinstate it. right now, a bit of a non-starter. union members need to sort out how far they are willing to go to fight for a benefit that is probably not doable. that is part of it. the other thing that is really puzzling, this is a huge crisis for boeing and yet it has only been at the bargaining table with the union five days since members walked out on september 13. i think there is a puzzlement as to why we are not seeing boulder action.

the playbook is a bit of a mystery. vonnie: the s&p warning as well has to be making everyone apprehensive because if boeing is downgraded to junk territory, it is going to be even more expensive for it to continue borrowing and keep operating. the workers must know this so what is the worst case scenario and have the workers thought about that? julie: i cannot put myself in their heads. i would be really shocked if they don't get to a point of resolution in the next few weeks should the average strike by this union has been just a hair under two months. we are about halfway there. the averages don't always play out but if that timeline stays in tact, that would allow boeing some runway to get out of this jam before the s&p acts. vonnie: this is costing boeing a

lot a lot of money either way will -- whether the s&p downgrades or not. how long can it continue without getting into serious financial difficulty? julie: the problems sort of magnify by the day. i really don't know -- something has got to give at some point. the leverage right now is with the workers so you would expect boeing to be feeling some pressure to come back and try to break the stalemate. we are not sure quite what they will do. vonnie: we are following it closely as are you. the stock down 42% year to date. another 2.5 percent lower in today's session. thank you for that. coming up, we are monitoring hurricane milton is a makes landfall south of tampa. next we look closer at cat bonds. this is bloomberg. ♪

vonnie: this is bloomberg markets. time for our stock of the hour. today we are looking at insurers as hurricane milton hits florida. when it comes to cat bonds, investors are -- themselves for financial losses. looks to trigger payment closes at a scale not seen in years. we are joined by the head of cat bond portfolio management at 12 capital. thanks for joining. what kind of activity have we seen in the catastrophe bond diverse given the scope and scale of this hurricane? >> it was quite a lot of noise. everyone is looking at the

storm. in the secondary market, we have seen opportunistic bids killed in the more risky segment and more reasonable bids in the more senior segment but there was not a lot of trading that came through. people are very cautious but a lot of talk. vonnie: it is interesting because last year, the global catastrophe bond index soared 20% last year. the fact we have had two huge hurricanes ruin the returns for this year? tanja: it definitely does have an impact. i doubt we will reach the same height as last year. we are currently quite positive today. up more than 10% so you have a buffer in terms of positive performance and we would expect

hopefully we still finish the year positively. vonnie: you talk about in the cat bond universe this is probably something you talk about a lot but milton is an asymmetric storm. what does that mean to cat bondholders? tanja: what we mean with asymmetric storm is the eastern side of the storm is where the most damage will likely happen. the winds are the strongest and because of the strong wind, you would have more storm surge and that means the eastern southern location from the landfall location will have the most damages. this storm is super particular. it is very sensitive to landfall location. 20, 30 miles south or north, the lens of dollars of damages depending on whether it is a very populated area or not.

that is why this one is particular. vonnie: there are potential tornadoes after the original hit as well. is that also concerned the cat onto market and at what point will we know the fallout? tanja: it does concerned cap on fallout as well. these are covered as well. a little bit less so not all cap bonds covered that. tomorrow to named storms only. if you think about it, it is hard to tell after such a severe event whether a damage was caused by which wind event. definitely takes part in the loss assessment and it will take time since we are mostly thinking about landfall but the storm will continue across florida. it will take a few days and likely may be a few weeks for the first reasonable good

estimates in short loss damages. vonnie: there is flooding as well and that may or may not be part of the universe. just want to briefly ask you where do you look in terms of cat bonds if you want to look at the indices where this particular storm is affecting them? tanja: certainly the swiss recap bond index you mentioned earlier is one of the indices to look at in terms of assessing damages afterwards. there are providers for short losses that we are looking at there are model vendors in the space that provide their own estimates and as asset managers like us, we put out numbers to inform investors about what we think the estimated damage will be. vonnie: we hope to check in with you again in a few days time when we know more. head of cat bond management at

12 management. we want to bring you to president biden who is going to be speaking about the incoming hurricane. let's have a quick listen. >> the clearwater mayor and the ellis county chair when peters. i offered them everything we need. everything we have shared everything they need. i made clear to them if there's anything more they need. i gave them my personal phone number at the white house. they are to contact me directly if that is necessary to than the close with this. i want to thank the governors, all of the affected areas the last couple weeks. florida, north carolina, south carolina, tennessee, virginia. we have been in constant contact and they have been very thankful and appreciate to -- appreciative of the help the federal government has provided. appreciate of -- i'm appreciative of the work they are doing i have told them to

contact you with anything they need. we have made available in number of assets to deal with the crisis. i want to be clear about something. over the last few weeks there has been a reckless irresponsible and relentless promotion of disinformation and outright lies that are disturbing people. it is undermining confidence in the incredible restaurant recovery work that has already been taken and will continue to be taken. . it is harmful to those who need help the most. there is simply no place for this to happen. former president trump has led the onslaught of lies. assertions have been made that property is being confiscated. that is simply not true. they are saying people impacted by the storms will receive $750 in cash and no more. that is simply not true. they are saying the money is needed for this crisis is being diverted to migrants. what a ridiculous thing to say. it is not true. now the claims are getting even more bizarre.

congressman marjorie taylor greene, a congresswoman from georgia saying the federal government is literally controlling the weather. we are controlling the weather. it is beyond ridiculous. it has got to stop. in moments like this there no red or blue states. there is one united states of america where neighbors are helping neighbors turn volunteers and first responders are risking everything including their own lives to help their fellow americans. state, local and federal officials are standing side-by-side. no one should make the american people question whether their governments will be making sure when a disaster strikes they will be there. we will come all of us. i'm going to turn over to vice president harris if that is ok with all of you. thank you. madam vice president. vice president harris: thank you, mr. president. as the residence said, we have been working around the clock to prepare for hurricane milton and to ensure people are safe

including ensuring federal, state and local resources -- vonnie: that was president biden speaking from the white house about hurricane milton said to make landfall tonight with 6 million floridians urged to get out of the way. we are going live to the citadel securities global macro conference where we will hear from former world bank president david malpass. this is bloomberg. ♪ at ameriprise financial our advice is personalized based on your goals, whatever they may be. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice... i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us.

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vonnie: the citadel securities global macro conference underway sonali basak joined by former world bank president david malpass. sonali: thank you for joining us here in new york. a lot of the conversation has been centered around the federal reserve. the stunning 50 basis point rate cut and on the big question on how much more room there is. given where inflation stands today, what do you think happens next?

david: it is important and there is lots of money at stake so that is why people talk about it a lot. my view is the shape of the yield curve is quite controllable or influence a bull by the way people talk about it or the way they think about it. if you had a u.s. economy that was producing more, you would be less worried about inflation and so you could have a lower yield curve across the board. production is important. another thing that is important is where do you issue along the yield curve? the u.s. government is such a gigantic barware. we saw the fiscal deficit at $1.8 trillion the last 12 months so every quarter the u.s. government is choosing where to issue along the yield curve so that changes the shape. the third and i will stop there but confidence and trust in the u.s. is an important part of where the yield curve can settle. have gone through this wild time

where it was zero rates for a long time and then high rates for a long time so the market has got to find a middle ground and that is based on trust. sonali: i'm glad you would've the yield curve. i don't think people talk about it enough and really have a 210 curve now. looking at a differential of five basis points. this is a yield curve many market participants have believed will become steeper, more on inverted as you say but we have seen it become inverted once again. what does that tell you? david: the market went through this feeling maybe the fed can cut a lot and inflation is going down but the economy is still going. they have taken that back so we have a flat yield curve from the two to the 10. it is important i think we get to a lower short-term interest rate environment at some point because it is so important to small businesses. they borrow at a floating interest rate at the shorter end and so one of the frustrating

angst is people are beginning to say we can absorb a higher for longer interest rate environment. the impact of that on business is it hurts small businesses. big businesses in the government survive but not small businesses. outside the u.s., same problem. they borrow at floating interest rates. this is not a good environment long-term for them. sonali: what does that mean in terms of how much room you think the fed does have two cut? it sounds like you are pushing for much lower interest rates. where should they be into the middle of next year? david: that comes back to my first point that production matters if you had a u.s. you thought was going to produce a lot either building houses or g production, these are important because they feed into the costs of everything. if that kind of policy could be established, that would give you a chance to lower the interest rates on the short end and get

small businesses up and running. sonali: one big concern about interest rate policy is the presidential election should this idea of fiscal spending in -- fiscal spending igniting the economy the committee for risk first -- both candidates would add to the debt load to kamala harris to the tune of 3.5 trillion to 2035 but trump would add north of 7 trillion to how do you make interest rate policy with that kind of uncertainty on how much inflation can be felt next year after this election yet david: don't make it on their forecast. it is the committee for the responsible federal budget. that is kind of an oxymoron. the federal budget is irresponsible right now. one problem with that report is it assumes you cannot get the economy going. the cbo and forecasters are saying under current policy, the u.s. economy is going to be slow

into the future and therefore the national debt goes up. if you can change the policy and get better policies, you can begin to impact the fiscal deficit. i did not agree with the numbers that came out of that report. they are against lower taxes. businesses are saying if you will give me a lower tax rate, i will produce more. there should be some kind of discussion about that included in the forecast that you are trying to work out. the federal reserve is using old models. think about -- they use a keynesian model, a phillips curve model and that permeates their thinking about the limits to growth on the u.s. economy. sonali: it has been reported earlier this year of the potential candidates that could be under a future trump administration for various posts particularly the fed, you are one of the names that have come up in reporting.

you see yourself in the future administration should trump win and what you think will be his fixed impact on the market if he does? david: we are under midst of a campaign so that is really more important than who the people are. that is not so much the issue now. what you do see is this distinct difference in the two concepts. trump is talking about ways to have the economy produce more. that means more energy. that means more industrial manufacturing and that is in part a lower tax rate for that kind of activity. i think also a better policy with regard to defending the dollar. those will all work. i've been frustrated vp harris has not said what she would do with the policy. sonali: we are out of time. thank you for joining us here. back to you. vonnie: sonali basak there and former world bank president david mull pass at the citadel

securities global macro conference. we have the s&p 500 just off session highs up half a percent. that does it for bloomberg markets. this is bloomberg. ♪ what does a good investment opportunitok like? at t. rowe price we let curiosity light the way. asking smart questions about opportunities like clean water. and what promising new treatment advances can make a new tomorrow possible. better questions. better outcomes. it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

>> from the world of politics to the world of business, this is balance of power.

live from washington, d.c. joe: hurricane hilton -- hurricane milton x's final approach to the gulf coast. hundreds of thousands evacuate ahead of the category four storm making landfall overnight in florida. welcome to the winds edition of balance they a power -- the wednesday edition of balance of power. lives are in danger as we continue to see an argument over the response to the west hurricane, the preparations from this one within added layer of misinformation. kailey: all of that being propagated by donald trump in particular when it comes to accusations he has made about the way in which fema resources are being deployed. any of them are false and his running mate jd vance pending an op-ed in the wall street journal about what he is describing as