joining us in an exclusive interview is atlanta federal reserve president raphael bostic president bostic, welcome back good to see you. >> it's good to be back. how are you doing today? >> doing well. trying to figure out all these crosscurrents in the economy are you still thinking one and done when it comes to a may interest rate increase >> so, one for sure, that's my baseline for this year i've been at this point for quite some time. the economy is still -- has a lot of momentum, performing quite strongly and inflation remains too high before i came down to the studio here, i took a look at our underlying inflation dashboard by pretty much every measure that you look at, current inflation is more than double what our target is so there's still more work to be done and i'm ready to do it. >> the question now becomes, what happens after may are you leaning toward more hikes, staying put >> so, my baseline is to hold. i think that after the next move, if the data come in as i expect, we will be able to hold there for quite some time. now, you know, i've been saying for a while, i don't

bullard and bostic saying higher for longer. futures pointing lower right .3%. when it comes to inflation in the u.k., we are still in the double digit count. we are not comparable to the euro zone a little over 6%, the u.s. by percent because a u.k. inflation is above 10% and that sustains and is persisting. the boe and implications for that hike and expectations come may. the ftse 100 currently down .2% dropping 18 points. we will check in on sterling and gilts in the next few seconds. german tax down .2%. in spain losses of nine point down .1%. yesterday we heard from fed speakers and bostic wants to see it 5% held for longer. james bullard saying he would like to see potentially the terminal rate get to 5.75 in the u.s. as they continue to push the agenda to get inflation back down to the 2% target. let's look at cross asset with a focus on the pound given the surprise beat on inflation for the month of march. double digits and the pound getting a pop up .3% versus the u.s. dollar. 1.24 on the pound gaining .2% as markets increase their bet on rate hikes fro

raphael bostic seems to open the door to a pause as well.n terms of playing down the recession was, he is saying the economy is performing strongly, acute bank tensions seems to be subsiding. he says the bankers are telling him there bankers aren't calling it now to take out their money. he seems confident this is the right thing to do. the president of the st. louis fed, is still pushing for more. he said that he does not see a recession ahead. he says wall street is very engaged in the idea. this is a quote for him, convinced there is going to be a recession in six months or something, but that isn't really the way he would read an expansion like this. he goes on that it has to do with the strength of the labor market. he said, if we were going to have a crisis, our financial stress index would go up to four or five. he said it is not spiking, it is at zero. he is confident they can go to 5%, but that rate will get to 5.5% or more. we have a lot of information from that meeting and a couple of weeks, we will get the read from jay powell on

let's start with raphael bostic.ere is still more work to be done and i am ready to do it. he sounds like a soldier fighting a battle against inflation. he says the economy is performing strongly and still has a lot of momentum. he is talking to bankers and they are asking if they should move money over to a bigger bag or something like that. he thinks the acute bank tensions are subsiding. that 5.5 to 5.75 that you mentioned with jim bullard, he said for some time he thinks the rate is going to have to go up to 5.6% and that is basically what that is. jim is saying the fed needs to do more rate hikes. he says about wall street and this recession call, wall street is very engaged in the idea. that is not a way you would read an expansion like this. jobs are still growing pretty strongly. you have inflation still high. wages are still growing. where is the recession signal? retail sales have held up reasonably well. jim says the st. louis feds financial stress index is not spiking. if they had to worry about it, there

. >> we also heard from raphael bostic, not a voting member this year recorded the idea that tightening banking conditions are doing the fed job for them and sees a hike and then a pause. >> yeah, sorry, the interest rate debate here is critical at the moment. there is a lot of division over whether the fed should keep hiking rates and risk an outright recession or whether they should pause and let the interest rate hikes do their work, but as you played in those clips, people like loretta mester making the point inflation is high and they have to keep raising interest rates and the expectations are another 25 basis points in may, perhaps a pause. we will get wage data at the end of next week that is almost important as inflation data because everybody's looking at what is happening with wage gains in the fed is looking at what is going on given how tight the labor market is, so i would have to say what seems to be front and central to the economic debate is up there with the decoupling story from china. >> we do have an alert when it comes to taiwan, deeply wrapped up in the u.s.-china

this is the camp that raphael bostic is excited to be in. do another 25 basis points and then be done it for a while, you can pause. he is playing down recession risks, the economy is still performing quite strongly. he said it has momentum, and what about bank tensions? he says they seem to be subsiding, when he speaks to banks they are saying we are not seeing depositors taking out their money. he is sure that is not an issue. green light to hike their rate again. he sees the funds rate going up to about 5.5%. because he does think the fed needs to do more. inflation is still high, he wants the fed to go ahead without worrying about recession. he says that wall street, this is what he said to reuters, wall street is very engaged in the idea that there will be a sit -- recession. that is in the way he would read an expansion like this. this labor market is still quite a strong, prices have come down, but they are still high. as far as he is concerned, green light to go. and it comes to the banking spillover that has died down, he says if yo

his reaction to our bostic interview. >>> netflix set to report earnings after the bell.

>> in 1971 bostic products make shopping baskets. in wendy 22 is the biggest advertising firm on the planet. sometime between then and now specifically in 1989 he walked through the doors and played a confirmation. the man who made the giant had stepped down. today we speak to him about a new age of advertising and how to run a business fit for the 21st century. >> thank you so much for joining us what does it mean to be an ad leader? >> it's such an interesting phase is in it? we had just been through the pandemic. we came back ever more relevant. new advertising formats, companies being launched, e-commerce taking off. life is changing, it changes all the time but it is changing now more than ever. >> over the last 10 years it's been incredible can you go through the same pace of change? >> i think so. 100,000 people around the world we try to have the small company, to be responsible working on individual clients. it's that trick, is in it, how we get the scale also how we operate quickly. >> other rivals are very focused on spend

as a smaller fragments of bostic, and we add to many of the products that we use in our daily life. some of which i can mention to you as personal care products like fis, scrub 2 pays shampoo. all this things have certain amounts of micro plastics added to it for the kind of ah, properties that is provided to the plastic and for the book was that you're using it too. so these are known as primary of micro blast if there were small fragments . essentially to read the definition of micro blast by size is in any plastic particle which is less than 5 m. m is considered as micro plastic. and there is a 2nd category of micro plastic which is secondary micro blast was or which happened because, or breakdown of large amounts of plastic that is there so. so these are 2 kinds of micro plastics. and the problem with micro plastic is that the inherently county the chemicals that that were originally plastic had because of the breakdown. it does not move away from the plastics and that contains it. and when it reaches the soil or water, or marine or any other media, it releases many of these che

shipped anywhere with the goal of promoting a more sustainable way of living and making housing trip. bostic lee more affordable for the world. these tiny homes all have completed kitchens, bathrooms, electrical plumbing, and h vac completed in factory before it's shipped out. so when i arrive at its final destination, the home just needs to be unfolded, attached to the foundation and utilities before it is ready to be moved in. not only are these tiny homes affordable for consumers and eco friendly for the planet, there are also time cost and labor efficient to create homes in factories rather than individuals designed and built. and these could potentially solve many of the housing shortage problems in certain parts of the world as factories can turn these out effortlessly and less than half the time it takes to build with the help of an automated and standardized process. so now let's bring in jason hartman, chief executive officer at empowered, investor. so jason, which country still has the most affordable housing and what policies are in place that allow it to be still? well, you know,

oh, i couldn't bostic northerners. you employ the boudoir that dominant mozilla clarity . you much would say christmas, we had 2 schools for the course argument temporarily slammer here. really cor palmer glow to long from us could bradshaw both think it's suburban, is after sawyer image and not only connect sequel sauce, bodily star, but again ali molly labelling super mom was in oscar spreadsheet. unconsciously smoke sphere to the global cisco data by you not going to was as good at the top. political nestor. funny. he contacted the important those 30 there with a city. would you please suspend a break or thought on useless get us of it. but they had subordinate knocking or ask for the you was lobby, it was a doctor, was the was one is, can northridge ah fish you saw doing us a grow. mr. runner? she last run as you're the army, even with the bullet that over in the yakima was, gosh, they took of no, didn't you ceiling this really not what she thought a deal i grown so you are all the girls and in fact, you'll still run out of value ah, so she miss even though the beat an

bostic wants to get to five and hold. buehler thinks we could see things get to 5.5. that has hurt the market to some extent. i mixed crude is lower almost pointed -- .2. also you have upgrades to the china story. ubs up with -- also up. a little bit of momentum coming in from ozzie. tom: that optimism going through from china. let's get some reports from around the world. we have the inquiry -- angle on central banks. we have the moves from netflix. manus: plenty of eyes on inflation data this morning. the debate rages on as to whether the bank of england is done with raising rates. we are expecting the final reading of inflation data today. the form in dublin, up for another hike. >> we have seen a reversal of supply shocks. much lower gas prices. why would say, as of now, two weeks away, the baseline is that we should increase interest rates in may. manus: getting with mark with the mliv team, what are we expecting from the u.k.? will things drop below the double digit line? >> the economy is forecasting a slightly lower cpi number. ironically, that might be the bi

we are hearing from raphael bostic speaking to reporters after delivering his speech, repeating leasingavors one more rate hike and then a pause. saying the policy moves into a restrictive space is working with the lag. we have heard this sentiment before. he calls for mid to high 3% range by the end of the year. we heard from the cleveland fed saying the policymakers will be gauging the impact of the banks tightening what it comes to tightening lending standards. seeing the peak rate above 5%. just adding to the narrative that fed policy makers need to get their job done, we are nearing the end of the tightening cycle. that there is a consideration as to maybe a pause in the meeting after next. let's get you to the fed right now with vonnie. vonnie: cleveland fed president's signaling support for an interest rate hike. she also flagged the need to watch the recent stress in the banking sector. she says the fed is closer to the end than the beginning. >> i anticipate a monetary policy will need to move further into restrictive territory. the fed's rate moving above 5%, and the real feds

and speeches from christopher waller and bostic throughout the day.the fed balance sheet. plenty for investors to chew on. let's get more insight from victoria greene. she is a cnbc contributor. >> good morning, frank. >> vicki, what is the "wex" wor of the day >> mine is judicious you have to be prudent how you invest and make sure you deal with facts is your conviction changing or update your thesis as we get a look under the hood of the first quarter numbers you need to be looking at data and not with panic it is is not smart to turn on a knee-jerk day. let's say we have new headwinds and saw something different come in look at it and be prudent and fact based when data is flying around, be smart and calm. >> i like that word. looking at the futures overall, the dow is down 140 points nasdaq is the hardest hit. down 1%. a lot for investors to chew on we heard the fed governor say some hawkish comments. we are hearing janet yellen with the relationship with the u.s. and china. how do you see this shaping the trading day ahead? >> the banking earning

. >> what if the fed does one more and leaves it there like bostic suggested yesterday? does that make you feel better, if that's the right word, about where you think the trajectory of fed policy goes >> it's still more hawkish there's about 80 basis point then there's a question if they pause, will financial conditions ease financial conditions have retraced 90% of the tightening it says we're in easy territory. if we see a higher inflation print, the fed will push back hard. >> you believe the fed over the bond market? >> it's the right thing to do. >> nicole, quickly, before we go and i have to go because i have breaking news coming up, this idea of the fed, how are you thinking about it based on what you heard from fed speak lately? the idea that may is one more and then we're done. >> yeah. there's a lot of balance and bad information and good information. looking at these pockets of positive, meaning we're starting to see the real estate market move again you're starting to see empire state manufacturing information that's positive. the fed certainly, we're expect

did you listen to bostic yesterday?> i did >> what is it like when somebody really rational comes on and talks rationally >> i enjoyed listening to bostic, and i often do >> he's not try to throw a bomb or a mester bomb i don't care what happens, we're taking it to ten that's an extrapolation a of what she said. she didn't say that. >> gorman and dimon are in a similar place, though, still get to the high 5, 6%-type interest rates, which gorman on the call again, just a few moment ago, says is not shocking "again, many people are calling for a modest recession it might be, you know, i don't know, obviously my gut is whether it's a modest recession or not, we dodge that bullet, sort of doesn't matter that much what really would matter is if inflation is not tamed it has to go much higher than people are expecting it to go to get a deeper recession." >> he thought that unemployment would go to 4% and inflation rates would go to 4% -- inflation would peak at 4% that didn't happen >> right >> he was too bullish. and his cri

we have so much fed speak it waller, messner, logan, bostic and parker. some of them.e also how -- earnings out of csx. and president biden will meet with the president of club you. alix: i'm looking for to that as well. that wraps it up for myself and danny. bloomberg technology with caroline hyde is next. you are looking at trading a little heavy on thursday morning. this is bloomberg. when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh >> from the heart of where innovation, money and power collide in silicon valley and beyond, this is bloomberg technology with caroline hyde and ed ludlow. caroline: i'm caroline hyde at world headquarters in new york, ed ludlow is on assignment. this is bloomberg.. gs mc jumps despite global slump in chips. tesla risking margins to boost sales all humans. they have been cutting car prices on a near monthly basis and elon musk hinted at more c

we talked to bostic earlier in the week and if the redfin data is on his plate, he said absolutely, wer notion these are human beings making judgements makes sense. my question is, how often does the staff disagree with say the committee about beating recession? is that notable? >> look, you know how the meeting is run beginning of every meeting and throughout periods between meetings you're getting info from staff they provide a very precise and sharp briefing at the meetings the first day, and then the bank president followed by the governors until the new york fed the second to the last to speak, provide their input as well. and they've been getting their input from their own staff i had [ inaudible ] at the dallas fed they would brief me and i would sort that through my mind and present what i thought was the best representation of their thought with some opinion on top of that. that's the way the system works. these are 18 individuals, thoughtful, devoted to their duty and what they're trying to do is provide the best judgment possible again, it's not mathematically precise, despi

another rate hike in may, reiterating the longer for higher mantra we're getting incrementally from bostic and harken in the last 24 hours. >> i haven't heard any of them say we need to pause. >> goolsbee is look, do it - >> caution but they still have an inflation problem richard fisher, he's always been worried about inflation, but he articulated really well, the former dallas fed president told us last hour, their credibility is on the line there's also still inflationary pressure in this economy and there are still surprises. how about the april pmi data this morning on manufacturing and services coming in hot it's confusing because we thought everything was going to be weakening but it's not, so the fed will have to move. >> we'll get more indicators next week with pce and gdp from q1 in the meantime, markets hanging in there some moderate declines volume is better than it has been normally this time of day expiration will maybe give it a boost. >> this is the time of the day the market recovers from the lows of the morning, as mike santoli told us. not seeing it much today it's being

here are the fed speakers, christopher waller, loretta mester, michelle bowman, raphael bostic and patrick harker are jamming it in before they have to be quiet. do they want the final word before we exit this -- into a quiet time where they are banned from it? what will they say? jonathan: did you run out of space on the graphic? i want to talk to michael mckee to break it down. lisa: the fact that john williams yesterday had the same kind of tone as austin goolsby of chicago was interesting. they don't know what kind of credit typing there will be but they are seeing signs that's the case in the fed beige book yesterday highlighted that that there's been a shift downward and a real tightening in lending conditions. they want to assess this but will it keep themonathan: we d'. there is surviving and thriving. we are talking about the regional names giving us an indication they can survive and we've seen many indications they can't thrive. lisa: you've seen them losing deposits that don't bear -- pair -- bear interests. zions bank yesterday had shares that were lower in premarket earnings

after that the guidance is clear, president bostic that the restrictive action at way through.arker let monetary policy do its work. we are going to hear much of this over the next. lisa: we're going to see what happens. people take that as we're going to cut rates and it is over. how do they push back against that, signaling they are more patient? they still view the risk of inflation as significant despite signs of disinflation. jonathan: bank earnings early this week. smaller names, tech coming up next week and may you could apple. may 4, apple. microsoft, april 25. google, erbil 25. amazon, april 27. lisa: i do wonder if we see pressures that we saw. yes he reports in chipmakers showing -- mesirow sports in chipmakers showing slower demand. how much are they going to be winners and losers? dan i'm saying is going to be a pivotal earnings season to determining who is going to going to get stronger and who is not. that's what we heard from luke kawa as well, well, jonathan: tesla has been cutting prices of vehicles the last few months. most of this year. i think it was close

. >>> fed president bostic said the fed can hit the mark and hold he said one more quarter point rate hike can allow the fed to end the tightening cycle with confidence inflation will steadily return to the central bank's 2% target let's bring in carol she is the chief innvestment officer. this reminds me of 7 minute abs. you can't get a good burn with six minutes. okay, 4.75 won't do it this is, to me, body language and psychology for going one more after the numbers this week, do you think we need another 25 >> we actually didn't think they needed the last 25 you nailed it with the psychology game. they are trying to figure out if we don't raise again, the markets will run away and that works counter to what we want to do underneath the economy, there is a lot of health under businesses great businesses that are looking to do different deals and looking to put capital expense out, but holding back because they are trying to figure out if they're done the fed is playing the psychology game if we level out, markets assume we go right to cut rather than hold steady for some period of t