lisa: one of the differences people appointed to between lael brainard and jay powell is lael brainard be willing to look past inflation and increase the target more to allow inflation to perhaps see a more persistent 3%. do you agree with that assessment of her the potential for that to shift that policy? claudia: i think jay is as committed to the new framework. it has broad-based and inclusive employment. jay is the real deal on that. lael is. whether we are moving through a 3% target is a different discussion. i do not think they are going to need to go there, but i think either of them will do what it takes and are committed to elevating the employment mandate. this is not the fed of even a few years ago. tom: we have to leave it there. we look forward to speaking to you in the coming days. claudia sahm is front and center at the changing of the guard at the fed. we will see where that goes. a lot of what we expected and some surprises along the way, but no one is surprised that immediate lee following glasgow and what we do about energy the debate as well in scotland. if you move

brainard. vice chair brainard: mr. president, thank you. i am deeply honored that you are entrusting me with this possibility at a critical time. i am committed to putting working americans at the center of my work at the federal reserve. this means getting inflation down at a time when people are focused on their jobs and how far their paychecks will go. it means supporting a growing economy that includes everyone. it means ensuring financial markets are thriving and resilient, and the economy sustainable for future generations. it means serving all-americans in every community across the country and ensuring the federal reserve reflects the diversity of the communities we serve. i was privileged to work with chair powell as we made every effort to protect workers, businesses, and families from the covid financial shock with the support of congress, and i look forward to working with him in the months and years ahead to build a durable recovery. i also want to thank secretary yellen with whom i've also been privileged to work. i am gratefu

brainard. >> mr. president, thank you. deeply honored that you are entrusting me with this responsibility at a critical time i'm committed to putting working americans at the center of my work at the federal reserve. this means getting inflation down at a time when people are focused on their jobs and how far their paychecks will go. it means supporting a growing economy that includes everyone it means ensuring that financial markets are thriving and resilient and the economy is sustainable for future generations. it means serving all americans in every community across the country and ensuring the federal reserve reflects the diversity of the communities we serve. i was privileged to work with chair powell as we made every effort to protect workers, businesses and families from the covid financial shock with the support of congress, and i look forward to working with him in the months and years ahead to build a durable recovery i also want to thank secretary yellen with whom i have also been privileged to work. i am grate

lael brainard is a wonderful friend of many years. jay powell has identified that he is not afraid of carrying out this framework that they outlined before the inflation arrived, and it is taking a bet on team temporary, that the supply chain will ease and by this point next year, we will be back in a more normal scenario. alix: when you worked in washington, what is your understanding of the power of joe manchin and how that winds up playing out with the fed, and then when it comes to the human and for structure bill that now has to make its way to the senate and will know doubt be stripped down -- will no doubt be stripped down? austan: if you need 50 votes, every senator has a veto. that's part of the delicate dance. you saw it with nancy pelosi trying to usher it through the house. you can't just say what does joe manchin think because if what joe manchin wants woodley's you'd -- once would -- wants would lead you to lose other senators, then you still don't have the vote. that is the argument per powell, that you had a series of

brainard, picked as vice-chain— him, lael brainard, picked as vice-chair.ttin vice-chair. i am committed to putting working _ vice-chair. i am committed to putting working americans - vice-chair. i am committed to putting working americans at| putting working americans at the centre of my work at the federal_ the centre of my work at the federal reserve. this means getting _ federal reserve. this means getting inflation down, at a time — getting inflation down, at a time when people are focused on their— time when people are focused on theiriobs— time when people are focused on theirjobs and how fair are their— theirjobs and how fair are their paychecks will go. she is a federal government - their paychecks will go. she is a federal government that - their paychecks will go. she is l a federal government that many progressives would hope would replacejerome progressives would hope would replace jerome powell. progressives would hope would replacejerome powell. among replace jerome powell. among those replacejerome powell. among those disappointed was democr

he highlighted the appointment of brainard.rting to see more power in our economy we need a vice chair who understand the economic recovery must strengthen our communities and put workers first. brainard will likely be pressed by republicans about how far she wants to go to regulate banks over climate change and powell's corner. janet yellen and attract record of leading us out of the pandemic. she worked closely with powell when she was fed chair and the commerce supports powell's renomination. they are saying this. respected at home and abroad chairman powell help the u.s. in her economic partners successfully navigate the challenges from the pandemic. powell must be reappointed or reconfirm by february 28 when his term ends so the continuity from the federal reserve level. one interesting note, the harassment she was the senator she voted no on powell in 2018. david: thank you very much, market watchers luke lloyd and michelle. investors like lower rates but today the market is up despite the fact that they will not get rate

jay powell and lael brainard will also speak. coming up, u.s.ies advancing off the highs of the session. a selloff in the bond market. more on the market reaction, next. this is bloomberg. ♪ alix: we are two hours plus into the trade in the u.s.. financials and energy outperforming. we are watching oil after a report we might see spr release from the u.s. as well as other countries as early as tomorrow. also seeing a strong selloff in the bundle -- in the belly of the bond market. mary phillips, dimensional portfolio management deputy head joins us now. we get the headlines that continuity is the name of the game. fed chair jay powell, vice chair lael brainard, also a lot out of d.c. does this change how you look at the fed and markets at all? mary: for dimensional it does not. we will see consistency is great. the markets have appreciated this. the fed is one of millions of data points. that information we will incorporate and keep doing what we are doing. guy: if we are going to see a more hawkish fed, a faster taper , rate hikes coming throug

my question is, can lael brainard get 51 votes?e. all my sources, all the water cooler talk is something like, well, she's pretty much on the left, she's very political world war to partisanship, she has participated donating to the 2016 hillary campaign. many thought was important with regard to fed, fed officials and politics i don't think it's going to be a lay-up with regard to 50 votes or needing more but i will tell you this, the scary part is, is it going to come back down to joe manchin? again? carl, back to you. >>> all right. thank you. rick santelli. coming up in the next hour, elizabeth holmes back on the stand after testifying friday for the first time in her criminal trial we will be live at the courthouse when "tech check" begins in ten minutes. dow ngg hainon to a 235-point gain we're back after this. this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor looking at your full finan

has the inside track to replace powell, brainard does not leave empty-handed. the markets are endorsing the continuity, the s&p 500 on pace for record close and the dow is shooting higher by 285-point the nasdaq down 29 and it hit a new high in the session and you can see from the picture and the tech heavy started to climb back off the floor and perhaps the ten year treasury yield indicates a market endorsement, the benchmark yield sailed above 1.6% and its climbing higher at 1.63% for the ten year yield, after weeks of speculation president biden announce jerome powell will serve as second term as chairman of the federal reserve over lael brainard will serve as vice chairwoman. of course it has to be approved by the senate. powell has been a favorite of u.s. bankers and also u.s. investors, he is largely regarded as lightning speed to save lives in the economy during the worst of the coronavirus pandemic. recycling to the bank stock they climbed on the announcement they searched a section highest president biden took the podium over an hour ago they clear. li

if there was a brainard trade in the market, it's winding up. you have markets pricing in 50% of a may hike. bank stocks are green. what do you make of the whole thing? >> there's more brainard trade in the market than i thought there would have been or maybe this is how the market wanted to go but was stalled by the idea that it could have been brainard you have the dollar higher gold was selling off you've got bond yields higher. take a look at the fed probabilities. this is really interesting as i think i reported on this show not too long ago, that may/june split, that's a bet on a speedier taper if the fed gets this taper done sooner, it could potentially hike in may. so when you see that number around 50%, it's a market kind of having a good debate on whether the fed speeds up the taper in december or january you go across and just so everybody is clear, that right-hand most bar, that's the probability of a second hike in december at 58%. so the market looking now for a more aggressive fed than it was with the possibility that perhaps it c

jerome powell or lael brainard the president's big decision is coming soon. his pick could have implications for different stocks in some key sectors. we will give you a list of each. and the ev battery economy it will reshape century-old supply chains and it's giving investors a new way to capitalize on the fast-growing electric vehicle industry. >>> and the driver's manual. we will break down the inside of the car, from the seat makers to the dashboard companies, to the electronics makers to find the stocks that could turbo charge your portfolio. >> buckle up, everything the major averages are mixed the dow is down 55 points. er with well off session lows. we were down more than 200 earlier. the s&p is up ten. the nasdaq is up 21. retail is helping stocks today earnings in he can to us after macy's shares are soaring over 20%. kohl's also higher on strong same store sales growth and digital growth shares of kohl's up 8.5% nvidia higher after the company issued a bullish revenue forecast for the current quarter cited a 55% gain in sales from a year ago share

many felt brainard would be a dovish voice. no news on what sort of -- who will head that part of the federal reserve. largely because we did not see yields push so much higher. that is we expect a rate hike as soon june 2022. gold futures fall down 2.4% as inflation could be tamed somewhat quicker to bitcoin at 56,000 off of its highs. not proving much of inflation hedge. it was down on the day. some of the key tech names under pressure. the two your yield -- the two your yield. the dollar index continuing to rally up for tens of a percent. emerging markets feel the brunt. i do want to welcome our bloomberg television and radio audiences as we head to washington. we are joined by joe mathieu. and democratic senator mark warner to chew on the news we can't today. finally -- we got today. finally the announcement. the federal reserve will be held by chair powell. we wait to to hear who will be nominative to senator, your reaction to the peg. >> i think it was great news. in jay powell, we not only have continuity, we have someon

how much daylight is there between fed chair babel and governor lael brainard?adra: i actually disagree with bob. i don't think the ship would make that much of a difference. i have had a long career and i don't remember a hawkish fed president in my career. you have had hawkish regional fed presidents but not a chair. the fed, as a committee, is very careful to retain continuity, so they will not rush in and completely change policy, either to the hawkish or dovish side. the biggest change they have made over the last decade is moving away from the 2% inflation target to an average inflation target. i don't see them moving away from that. to me, who chairs the committee is not nearly as important as how they execute policy. i agree with bob in the sense that financial conditions are very easy. whoever comes in will have to tighten rates. but lael brainard has done the job, she has been through rate hike cycles of the governor -- as the governor of the fed, so she would become, managing through the cycle. the reason to keep powell as chair is to avoid near-term

brainard. >> mr. president, thank you. i'm deeply honored that you are entrusting me with this responsibility at a critical time. i'm committed to putting working americans at the center of my work at the federal reserve, meaning getting inflation down at a time when people are focused on their jobs and how far their paychecks will go, supporting a growing economy that includes everyone, ensuring that financial markets are thriving and resilient and that the economy is sustainable for future generations and serving all americans in every community across the country and ensuring that the federal reserve reflects the diversity of the communities that we serve. i was privileged to work with chair powell as we made every effort to protect workers, businesses, and families from the covid financial shock with the support of congress and i look forward to working with him in the months and years ahead to build a durable recovery. i also want to thank secretary yellen, with whom i have also been privileged to work. i am grateful

his team is seeking a meeting to sit down with governor brainard.ready had a call with chair powell and is seeking another meeting with chair powell. this is as it is getting very close to a deadline that's been quite shifting for the white house. now they say we will find out before thanksgiving. it does seem like there is still some indecisiveness and this morning, we have a release and a statement from two senate democrats saying they do not want a reappointment of fed chair powell. this has to do with climate change. they think another candidate would better embrace climate change when thinking about monetary policy. lisa: i was reading a note this morning that said it seems like perhaps governor brain art is getting a bit more -- brainard is getting a bit more support in the chatter, although the opposition to chair powell is somewhat disjointed. is that your view also? lael brainard looks like a better chance of getting past than a week ago? annmarie: yes, more than a week ago because you are seeing these statements come out. there's different

let's start with the powell-brainard debate.hen will we figure out what's with the president is going to jump? annmarie hordern joining us from d.c. with the latest. annmarie: we just don't know the exact timeframe. when we asked the president in glasgow, he has said we will know sometime soon, but now it does seem like it is coming a little closer to that decision. the fact that our colleagues are reporting when governor brainard was at the white house last week to meet with the president, it was to interview for the top job. many have speculated potentially he would keep powell at the top job, but put brainard as part of the supervisory chair position that quarles is leaving, but we now that -- we now know that powell potentially has a serious rival. mike mckee has a great threat on twitter, but potentially, will she have a little harder confirmation hearing? is this something potentially bought and wants to extend some political capital on? it would definitely be a nod to progressives, who thinks she is much tougher on bankin

brainard because i have read some of her things.ontrol freak seems to be you know, part of the mantra and we just need to get central banks, here and around the globe away from just controlling markets and trying to just, you know, press a button every time the market is in trouble. they don't believe in free markets. they don't believe with in the people. if they go away everything is just fine. unfortunately they create massive bubbles, massive debts, massive deficits and high leverage. that is what will cause the next bear market to be a lot worse than it should be. charles: to that point, shah, obviously great news for banks. they were in the cross-hairs of progress serves with brainard but the yield, the yield started lower. now it is moving a little bit i here. the bank stocks are starting to move a little bit higher. is this when they start to make the big move a lot of folks are anticipating? >> they already made a great, move, charles and i think they have a lot higher to go. we're maintaining financial positions love the b

powell and brainard find out this week who becomes the next fed chair.alls for faster tapering. u.s. intelligence has detected a buildup of russian troops and artillery to prepare for a rapid , large-scale push into ukraine. we will have the details. the top story very much of course the policy response to these rising covid cases across the euro zone. this chart will tell you part of the story. 250,000 cases is the seven day average now in europe. that compares to 80,000 in the rest of the world, and it is that reason we see reaction in parts of the euro zone. it doesn't tell the whole story. testing rates are very high in europe, that accounts for some of this. vaccination rates relatively high as well. but clearly there is enough going on to concern policymakers to take drastic dubs -- drastic steps. what has been happening in asia? the msci asia pacific is now 2/10 of a percent, some optimism in china gaining about 5/10 of a percent on the csi 300 on the back it seems of a change in language from the pboc. goldman sachs and others saying there is lik

judy: let's talk about lael brainard. of speculation as to whether president biden would maker the chair. she has been named vice chair. she is known to be in favor of stricter bank regulation. what role as she expected to play? >> i think the biden administration decided the most important thing the fed does is manage the economy, manage interest rates and in this no role, brainard will be one of the three people who really coordinates monetary policy. the chair, the vice chair, and the president of the new york fed. it looks like she chose to not take the other vice chair job for bank supervision, so i suspect when the president announces his choice for that job, it will be someone who is similarly tough on banks and the fed will have this two vice chairs, one responsible for banking supervision and one backing up the person being tough on the banks. there was some relief on bank stocks, relieved that brainard will not be the vice chair for supervision -- i think that is going to be a mistake. biden will appoint someone

brainard as chair could be different from brainard as governor >> interesting, steve.re saying sort of notice with the discussion the last couple weeks, that is it's not necessarily that she's more dovish, some argue there's gender bias baked into that, but that her language tends to evolve more slowly over time >> i think that's right. she's very careful i was talking to a person who knows her pretty well about how she used to prepare for some of the international meetings, and they said she would come in with a binder this thick, over prepare like yellen. yeah, just like that yellen was well-known for that i think she's careful, deliberate, but i don't see her being from thatsort of progressive wing of the party. i would put her more in line with the kind of maybe summers or austin goolsbee, jason furman wing of the economic part of the democratic party carl >> all right steve liesman, thank you >>> as we head to a quick break, here is a look at our road map for the rest of the hour including elon musk and senator bernie sanders get into a twitter spat over the weeke

will it be chairman powell, or will he have a chair renewed brainard? ge in the premarket up by 13%. we have been talking about it for years. when larry culp came on board, we talked about it then. ge splitting into three. tom: what is fascinating about this, at mackenzie bain, every single mba wonk this morning is saying, do we need to do what culp has the courage and inspiration to do this morning? jonathan: where how late they already doing this. tom: you could say late in terms of decades and decades of failure. there's no question about it. bu c -- but culp is delivering the goods on a plan that goes out to 2023. power of this breakup doesn't happen until 2024. jonathan: the stock is up by 13.5% now. let's get to the broader price action on the s&p 500 come up a couple of points on the s&p, advancing 0.04%. a lift on the nasdaq 100, up 26, advancing 0.16%. you want to do the dow? tom: no, i did it all through the morning yesterday. jonathan: on your own, talking to yourself. tom: i do my own data checks at home. jonathan: i can see that. your focus

you look at the dovish difference between brainard and powell.he markets not telling us that much. what would they have been worried about if brainard was in charge? >> i think the feeling, the margins that brainard is slightly more dovish in the market view but neither powell or brainard voted on monetary policy in an environment like this so it would be hard to tell. it is reactional get through this period of flux at the top of the federal reserve. joe biden said he was going fill the other seats and look for diversity and people on the employment side of the mandate over the inflation side. you're probably going to get a more dovish fed in theory but for the moment jay powell is back and that clears the way for some more things -- the type of policy that we follow. tom: discussion we're going to be hearing from officials about the pace of the taper and whether they need to speed that up come december or the early parts of 2022. is there a material economic impact? does it matter if the taper is sped up? >> that is a good question. i would say

steve liesman. >> most see very little day light between powell and brainard on monetary policy.y t put on the brakes and restrain accommodative growth they might difference on central bank currenty and deregulation brainard dissented several times in efforts to ease some of the dodd/frank pac back regulations. she has supported a central bank digital currency jury is out whether powell would support that brainard, who has been on the fed since 2014 is not from the progressive wing of the democratic party that looks to be championing her chairship in june, she said we have the tools and experience to gently guide inflation back down to target and no one should doubt our commitment to do so. she also said in september, though, the forward guidance on mack mum employment and average inflation sets a much higher bar to lift of the policy rate than for flowing the purchases of assets exactly what powell said whatever shesaid as governor, it could change. as chair, herren views would represent the entire fed and she would have to take full responsibility for unemployment and inflation

four picks if he chooses br brainard and others for powell >> if powell, does that mean brainard becomes> there could be other choices of compromise or more sentist or hawkist. a huge political calculus and maybe why it is taking so long >> the clock is ticking. this has to be done by february? >> yes and the clock has ticked this is the latest deployment of a fed chair we've seen the question is how much time there is to get to have the hearings i assume the senate can do this. it is certainly late in the game >> they don't have much else going on in congress right now no worries >>> coming up, we have the u.s. president of kraft heinz to talk about inflation and how much your turkey dinner will actually cost you this thanksgiving take a look at the markets s&p 500 up about 53 points and the nasdaq up we are back after this ♪ ♪ ♪ move to a sofi personal loan. earn $10 just for viewing your rate — and get your money right. ♪ small businesses like yours make gift-giving possible. and get your money right. now, comcast business has an exclusive gift for you. introducing the gift of savings

how much more dovish would lael brainard be? >> this is a golden opportunity for the biden administration to reshape the fed board. clarida's term ends soon, and another ends in december, and now the fed chair. the question is whether the biden administration is going to shake the structure of the fed in the coming months. francine: could it be more dovish? when do we find out? >> that is according to biden. we will have to wait and see. of the people we will see, the fed is not an island, there are several members, and bullard talking yesterday has scheduled next year and he is a voting member as well. different members will vote on this, but a chair who is more dovish will tip those two on the side closer to them. it is something to keep in mind, but inflation is a big problem, something to consider as we change these moving pieces. francine: we have the financial stability report. they talk about stable coins while bitcoin is at a record. >> i have so much to say about bitcoin, but when i think about reptile currencies, i thi

powell, and governor brainard as well. give you coverage to the morning but right now we want to speak on the boom economy the future fed will confront. part of that is rising prices in inflation. we are fortunate to bring you dana toll see, chief research advisory at tulsi advisory group. your shop has said forget the bloom, things are good. how good is it for the american consumer right now, for chairman powell for lael brainard? dana: it is a very good holiday season upcoming for the consumer in 2021. we have consumers that have the dollars to spend. researchers giving them innovative products. they have to shop early because supply chain are a headwind. overall the dollars are there for them to spend and this has been the first thanksgiving. i think we will see the theme at christmas is celebratory. it will be a celebratory holiday season in 2021. tom: can they pass price increases on the consumers? dana: the evidence joe and i see is they can and we are seeing it in all categories, whether home goods, whether clothing

chairman powell or governor brainard, the fed chair? priya: governor brainard. gene: brainard.athan: zach? zach: powell. jonathan: interesting. i'm surprised two went with reynard. -- brainard. next year, zero hikes next year? 0, 1, 2, or more? gene: i think two is most likely next year. zach: two. jonathan: drumroll, priya misra. priya: zero. jonathan: they are looking for december 2020 three. december 15, the federal reserve, a day later on december 16 we will hear from the ecb and bank of england too. if you could pick one that you want to know the results to ahead of time, which one would it be? priya: the boe. zach: boe. gene: it's gotta be the fed. these other ones are sideshows. jonathan: i'm surprised those two went with the bank of england. guys, good to catch up. from new york city, that is it for me. this was bloomberg "real yield." for our audience worldwide, this is bloomberg. ♪ moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right

as chair could be different from brainard as governor >> let me ask you this, it did seem there waschange of messaging from janet yellen. she said, there are two very qualified candidates here. in the past she has steered away from that, and did make people wonder is she testing this out, this idea of not being jay powell to see how the market reacts >> you know, that's a clever question, and a good observation. last week, they brought both in there, and my understanding is there was a lengthy conversation between biden and brainard i asked several former white house officials how they would advise the president if the market was going to freak out. most people said no, they wouldn't it looks likes they're out there kind of testing this pot to see if the president has the optionality or the flexibility that he would want i think the answer so far is yes. is the market does not seem to have reacted much. in that sense, the policies gived flexibility. remember, president trump got rid of -- in favor of his person >> the political position offed fed, though, that's what we're talking a

there are some democrats that want to see the brainard pick. they think that would be better on some issues. but you're also seeing some republicans coming out and saying yeah, you know what? even though there are some democratic skeptics about powell, we actually like powell. and we would prefer that to be the pick. so you are seeing this political jockeying right now. and i think that's a place where if you're really into the sort of -- you should probably look to the halls of the capital. manus: we have martin milone last week who pointed out that if it is leal brainard the -- her husband drives a giant agenda inside the biden administration and she would be at the top of the financial stack so a power base and a half there. thank you very much. wellbank in singapore with the latest on the fed debate. our attention to the u.k. because we are just under an hour away from getting the very latest p.p.i. data and analysts believe that inflation will far outstrip the bank of england's 2% target. that is the given. just how bad can it get? how hig

power, whereas you see wall street and the financial industry favouring jerome powell over lael brainardot clear where the president is going to come out, but i still think most likelyjerome powell. think most likely jerome powell. ~ , think most likely jerome powell. ~ ., ., , powell. markets are already caettin a powell. markets are already getting a little _ powell. markets are already getting a little bit _ powell. markets are already getting a little bit nervous l getting a little bit nervous about this, aren't they, because as you say, it is not actually clear what the outcome will be, and president biden will be, and president biden will make his recommendation of course, but then he has to get through the senate.— through the senate. that's correct. the _ through the senate. that's correct. the timelapse - through the senate. that's correct. the timelapse has created some nervousness on the part of wall street that he may not get appointed, but who knows... that creates uncertainty, and uncertainty creates more volatility and we will see he is supposed to be announcing i would sa

i think it's going to be brainard. she was going to be the pick if hillary clinton one, she is a lefty, she's in mmn t person i think it's going to be brainard. maria: we will be watching this. stuart varney is on, "varney & company" begins right now, stuart varney you'll have a lot about this this afternoon and this morning. good morning, everyone. the president will reveal his pick to share the federal reserve baby today, reportedly today, the democrats are fighting very publicly about bill back better, mass looting and lawless california, yes it is thanksgiving week, let's start with something positive. stocks rally in the socket carried away as a modest gain of the opening, we don't know how things will close out. the dow is looking for a gain of 140 points, enclosed at the lowest level since late october bouncing back this monday, recipe f-18 and nasdaq not bad up 74.3 the ten year treasury yield well below 1.6%, 158, bitcoin shy of $60000, it's up to 59 as we speak. this is the item that could move the market whe

there's -- lael brainard. trading scandal, and you keep hearing about inflation, and as you know, the fed's main job is to deal with inflation. bottom line is i don't know if there's much daylight from a policy standpoint between braynard and powell. i think they both are doves. i can't imagine that brainard's going to be a lot more hawkish on inflation than the powell, so i don't know if you can really blame him for inflation because the alternative would be even weaker. but that's what we're hearing. and, you know, listen, if you told me two months ago that powell would be 50-503, i would say you're crazy. if you told me six weeks ago, i think i reported on your show and cavuto's show both that he was in trouble because progress is don't like the taper when you cut back on bond purchases when you're trying to sell a lot of bonds. and right now the federal government is out there, it's going to be printing money, needs to print money like crazy to deal with this infrastructure package and maybe the build back

don't fight brainard. don't fight powell. what is the difference?athan: your equity market down four, -0.1%. heard on radio, seen on tv, this is bloomberg. ♪ jonathan: seconds away from economic data in america. tom keene, lisa abramowicz, jonathan ferro. no drama this morning. yields higher almost one basis point. with your economic data, here is mike mckee. michael: we have housing starts down .7% on october, building permits rise 4%. they offset in that sense. homebuilders are selling everything they can. they are seeing strength, even though the starts number falls by a little bit on a percentage spacious -- on a percentage basis. on a year basis now -- down just 10,000 from the prior month. not a maser change. housing strength continues. the fannie mae mortgage rate for 30 year fixed, 2.98 back below 3% for the first time since early october. the housing market still looks like it has a bright future. tom: i went -- i want to get out to tomorrow's important claim statistic. a survey of 260,000, maybe 220,000 is normal. do you sense a linkage of

biden also once governor brainard appointed to vice.e opposition from senate republicans. >> this decision does take some uncertainty out of the federal reserve as an issue. i think that is helpful for all of us. it means we will be able to spend 100% of our attention and focus on trying to discern what is happening in the economy. i will also say i think the president made a fine choice. opec shery: plus has waned it may -- shery: opec-plus has waned it may reconsider plans to raise out what. president biden is said to be planning to announce as soon as tuesday the u.s. will tap it stockpiles likely in concert with china, india, japan and south korea. opec-plus members say the move is unjustified. the u.s. says trade with india is falling short of it significant potential. washington's envoy made the comment on her first visit to india as the two countries seek to restart trade talks. her talks in new delhi will also focus on growing trade and digital economies, services, health and agriculture. global news, 24 hours a day, on air and

-- lael brainard will replace him.has felt like months now that it has taken the president to make a decision. but if we believe with the white house has been telling us, th ey will make a decision. host: it is hard to read what the fed will do sometimes. any indication if he does pick brainard, how the fed would operate differently in terms of policy? guest: it is a real question about monetary policy. the general consensus among the democrats pushing for brainard is, you can have the interest rate and other monetary policy policies that you like from jay powell, she will continue those, but you can also get more aggressive with financial regulation. that is the argument from the democrats who support her. one of the arguments from liberals i talked to that support jay powell is she is a question mark, we do not know how fast she will raise interest rates. and she might have a different thought about things than chair powell does. the wildcard in this is inflation is currently running at a much higher pace than the fe

lisa, give us an update on powell-brainard. it is like a sporting event i guess. lisa: the larger question is what is the difference between the two. in other words, how loose will lael brainard keep monetary policy versus fed chair jay powell? that seems like an unfair question. you are talking about the potential for an adam posen 3% inflation rate long term. is lael brainard more inclined to try to adapt to policies that actually do allow that to happen, or does fed chair jay powell have the exact same approach as she does when it comes to that? tom: we welcome you across this nation come from $2.90 a gallon gas out to four dollars. i got a huge response on the four plus dollar gallon crew. francisco blanch, was he saying five dollars a gallon? jonathan: we could get close to something like that if crude keeps climbing. he is talking about triple digit crude right now. it is heller's -- triple digit crude. right now, $82.32. tom: the dow a little bit negative. it is fractional. jonathan: the s&p off by more than 0.1%. we have had a great run the last week or so

lyle brainard and jarome powell.safest for the markets would be reappoint jarome powell and lyle brainard as the vice chair and there's politics at work here, let's face it. maria: for sure. lyle brainard is the progressive pick. we don't know what biden is thinking but hopefully we will find out soon. yields are moving lower, david. the yield on the ten-year almost down 4 basis points. energy prices rising, low and middle-class americans getting hit the hardest by spike and inflation while joe biden is focused on electric. he's setting a gel of 50% electric vehicles in the united states by 2030. has any of this policy changed the way you're allocating capital right now? >> it does and it's really changed since president biden was elected but this is an aggressive goal. it would be difficult to achieve, actually, i believe. but, you know, it does change the way we are investing and we are looking at the clean energy plays and the eb plays and specifically etf lit, lit, lithium battery panasonic battery maker. we are

my hope is they will not repeat what they did with the powell versus brainard fed chair sweepstakes. by prolonging that debate unnecessarily -- the time is past due for us to get the name of that nominee. there are some any good candidates that could fill it, it's time to get that candidate so he or she can be vetted by the senate banking committee so we can get a better sense on his or her worldview. katie: you bring up a good point. some of the commentary i read said by delaying this, you let the politicians lead where the president is going and set of saying the president can make the ticket and the rest can get in line. where does that happen with the -- when you give the time for politicians to weigh in and front run a decision. peter: there are pluses and minuses to president biden's approach. the pluses you get to have this public vetting. senator warren's views on regulation and how central they are to the federal is an important perspective and it is porton to eat -- it is important to be part of the vetting. conversations about how it should fit in the fed monetary policy r

i think it's going to be brainard.s this afternoon and this morning. good morning, everyone. the president will reveal his pick to share the federal reserve baby today, reportedly today, the democrats are fighting very publicly about bill back better, mass looting and lawless california, yes it

jay powell and lael brainard find out who becomes the next fed chair. we know of course who is the fed chair. it is jay powell. he has been renominated along with lael brainard who has been renominated as the vice chair. we will see how your nominations pass through the senate by lawmakers in washington. jay powell is expected to be cleared relatively easily. we are also talking about oil of course. we have this class being set up between opec-plus and the biden administration as the u.s. and its allies in south korea but also the likes of china and india as well look to release their reserves as opec-plus is pushing back on that. i want to point to what is happening with the single currency. the euro-dollar on the back of the news that fed chair jay powell is likely to get this second term. and you saw strength in the u.s. dollar on the back of a national holiday so we do not have trading in u.s. treasuries at this point but you did see yields inching above 1.6 on the u.s.. 10 year yields were higher as well. this chart shows what is happening in terms

governor brainard has been that much more consistent on her views on the employment market.the only thing that has been constant is mckee asks a question, and there is silence. jonathan: do you think a chair brainard allows mckee to go first? tom: no question on that. [laughter] jonathan: equity futures up to and on the s&p, up 0.2%. rate lineup over the next hour. come in up shortly, former new york fed president, mr. dudley. this is bloomberg. leigh-ann: with the first word news, i'm leigh-ann gerrans. in the u.k., police say in explosion in a taxi outside a hospital in liverpool has been treated as -- liverpool is being treated as terrorism. the driver was injured and the passenger died. police say the blast was caused by an explosive device passenger was carrying. four people are now being held in the case. minneapolis fed president neel kashkari says the "central should not overreact to inflation. kashkari told pbs -- says the central bank should not overreact to inflation. kashkari told pbs that overreacting could set the economy back over the long term. signs of optim

will there be a sharp move lower if brainard gets the pick? >> when we first got the whispers of the possibility of brainard being a federal reserve chair, that's when we got the initial reaction to that. and so now i think-the-on the market's radar and probably won't be that much of a surprise. but yes, absolutely. i think the big questions here when it domes to brainard when it comes to regulation and longer-term approach for fed policy, again, how quickly the fed is going to go when it comes to its rate rising pace. and longer-term trajectory of rate hikes in general. tom: ok. talking of rate hikes we had that inflation data out of the u.k.4.2% year on year for the month of october higher than the estimates at the 10-year high. it is a rate hike for the b.o.e. in december baked in? >> definitely as far as the markets are concerned. tom: they got it wrong last time. >> exactly. so that is the big question again for the b.o.e. it depends now on whether markets are -- or whether the b.o.e. is going to align with markets this time around. what

brainard is a little more hawkish. the jury is not out yet.here are three positions that are unfilled on the board of directors and the president indicated he may come out with some names. one of the deals that was struck behind the scenes is at least one of those seats might be more of a progressive candidate so we will have to wait and see. taylor: your thoughts on the treasury market that clearly reacted a little bit with yields higher, to clarity around powell may be getting a second term? >> i don't think we've seen any fundamental changes. to me, the fed has always been very collegial and they are supported by research from economists. i'm not looking for any change. i think they are trapped between their two goals. modest 2% inflation. i think they are limited in doing something with inflation, raising rates or tapering, because of the full employment goal. taylor: peter, let me get your notes. evercore saying this leadership team facing -- ahead. elevated data uncertainty will likely have a bigger impact on the policy passing the resol

lael brainard may be a dove but wall street loves jay powell. i think they would like to see him to stay. meanwhile the bond market seems to be taking control of interest rates from the fed as everyone, sees making who the next chairman a moot point. i will ask the market pros with some unknowns out there, what is the next big catalyst will be for this market? how you should be positioned. the media answer to the supply chain crisis. they say we should start living like europeans. be sure larry kudlow is ready to sound off on that. all that and much more on "making money". ♪. charles: we're mostly sideways today. the market is on autopilot although the nature of the action certainly defensive. when ever you see the utilities number one of 11 s&p sectors higher you know there is cautiousness to it. sell on the news notion, obviously was the biggest winner last week ahead of signing of infrastructure. this bill will be signed in the next hour. there a lot of anxiety out there. the rally has come a long way. valuations come too far too fast. gettin

it is not that it wouldn't be possible to get through a governor brainard to a potential chair brainardif that is what the president chooses. jonathan: thank you. we wait and we wait to find out who is going to be the next chair. what does imminent mean? i've got no idea. annmarie: imminent for me means asap, as soon as possible. it is coming within hours. but we still don't have it, so i'm not quite sure. jonathan: thank you. we will have a domestic later about this, have a stronger conversation about why we haven't got it yet. i have we not got it? you know what is interesting for me? this market is price for a rate hike in the middle of next year, and td is at december 2023. that is an 18 month spread for something that some people think will happen in about six months time. lisa: if you think about how much volatility there has been in the two-year, that is likely to continue, right? if you look at the bank of america merrill lynch move index, it is expected to continue. when does that affect risk assets? does anyone care that you've got up-and-down short-term rates that actually is

we will take a look at brainard as well and the prospects there.oining me right now is former kansas city federal reserve president and ceo, a distinguished senior fellow at the merkata senator, thomas hoenig is here this morning. it's great to see you again. thank you very much for being here. joining the conversation all morning long is fox business''s dagen mcdowell, and forbes media chairman and former presidential candidate, steve forbes. great to see everybody this morning. tom, thanks for being here and weighing in on these fed nominations. your reaction to what we heard from president biden yesterday nominating jay powell and lyle brainard for vice chair. >> i can't say that i'm surprised. i think everyone expected the be president to reappoint jay powell. i think the vice chair role is also no surprise, except i thought there was a chance she might be named vice chair or banking supervision. we'll see what her role is as vice chair itself but the two of them are at least historically been in pretty much lockstep on monetary policy so i don

i'm sure they're testing whether or not they can give it to brainard >> you don't think that brainard we're not talking amorova here >> if i can add to that real quickly, which is, there is a bloomberg report this morning that we're trying to confirm here i assume it's correct that senator manchin is meeting again, he wants a follow-up conversation with brainard, which kind of speaks to what richard is talking about, whab that they're doing is still counting votes for brainard. sorry to cut you off, richard. >> no, i think that's the case of course, tester is another important voice here and we don't want to have a failed confirmation hearing. i think it will be very tight. put it this way, it would be tighter with lael than jay jay has ha lot of friend on both side of the aisle. they know him, it'sese dwrer to go the powell route. they will try in the white house to go the brian ard route. we will have to see which prevails that's why it's taking so long it's a nose count. >> and just to steve's point, richard is on this, yesterday, there was a headline that said that joe manchin was