chair powell: no. sen. warren: so let's move to the volcker rule, the rule that works sort of like glass-steagall-lite, two separate commercial banking from wall street risk-taking. in 2019, you exempted more short-term trading holdings from the rules so banks could take on a little more risk. that weakens the rule. in 2020, you eased up the rules to let banks invest more of their assets in high-risk private equity and hedge funds, so the volcker rule got weaker again. so let me ask, during the past four years, has the fed done anything to make the volcker rule stronger and limit risky trading for the largest banks? chair powell: i think by clarifying it, we made it more effective at what it is supposed to do, which is just what you said. sen. warren: i have to say, it is whether or not you've made it stronger, not just whether or not you made it clearer. it is whether or not you made it stronger or harder for banks to engage in speculative trading. i am taking at that the answer here is no. i've highl

hines, for one minute. >> chair powell, welcome once again. we will be hanging on your every word today with all that is going on out there. mr. chairman, three weeks ago i had the religion of being appointed to chair the select committee on economic disparity and fairness and growth. i have reason to believe that the ranking member may come from this committee as well. mr. chair, i was normatively gratified to see a statement you made in may to the national community reinvestment coalition when you said, the fed is focused on these long-standing disparities because they weigh on the productive capacity of our economy. we will only reach our full potential when everyone can contribute to and sharing the benefits of our prosperity. mr. chair, you know we see economic disparities in this country we have never seen before, and you make the case that apart from the moral issue, there is a profound economic reason to address those disparities, inasmuch that it is damaging our productive capacity. the committee looks forward to working with you on th

chair powell: thank you. alix: you been listening to fed chair jay powell testifying before the senate, answering questions about inflation, fiscal and monetary policy, and the role of the fed. in terms of her market reaction, not a lot happening -- in terms of a market reaction, not a lot. here in the u.s., you have banks it hard, tech outperforming, and bond yields moving lower. stronger dollar. a different story in europe. we did see a bit of a selloff. it seems a bit murkier. guy: a bunch of things going on that are worth spending time on. the biggest compare and contrast between europe and the united states comes from the comments you saw earlier from michael saunders. the bank of england seems to be accelerating its view of when it may need to taper. it is starting to see inflation data which i would argue is in some way similar to the data we are seeing in the united states. there is a keen emphasis from the senators today on the inflation impulse and strong hands starting to emerge from the bank of eng

chair powell: we always have the issue. central banks generally always have the issue of looking at price increases and asking whether they are really threatening inflation. by inflation, we mean year after year after year, prices go out. something is a one-time price increase, you do not react with monetary policy. the way monetary policy works is by slowing down the recovery and reducing inflationary pressure. you would not react to something that is likely to go away. we have to look at this current situation where we have a number of categories where inflation is moving up hot -- higher than expected and a little more persistent. but we look at them and at the story. the story that you mention around used cars and new cars and railcars. it is all kind of the same story. there is a shortage of semiconductors. also high demand. people are using less public transportation. they have money because they have not been able to spend. it is the perfect storm of high demand and low supply. it should pass. unless we think there's

>> chair powell, will you unmute >> i'm sorry madam chair. so housing prices are moving up across the country at a high rate and i suppose the good -- the good news is that this is not driven by the kind of reckless irresponsible lending that led to the housing bubble that led to the last financial crisis those kinds of things are not happening, at least so far nonetheless, housing prices are moving up and of course that makes it more difficult for entry-level buyers to get into the housing market so that is a concern but i will also point out, though, that a number of things are driving up housing prices, certainly low rates are part of that there are also changes in preference people wanted to move out of cities because of covid into surrounding areas, so single-family housing demand has been quite high. in addition prices have been driven up by material shortage things like that which we hope would be alleviated. >> chairman powell, a lack ever supply and constraints around housing stock are a factor in the recent increase in-housing costs

chair powell, will you unmute?sorry, housing prices are moving up the a high rate and is by banning housing leading to the last prices they are not nonetheless, housing prices are moving up and that makes it more difficult for entry level buyers to get into the housing market that is a concern. i will also take a number of things regarding housing prices from a certain flow rates are a artifact changes imperfect people have moved out of cities because of public into surrounding areas so single family housing has been high and prices have been driven up by material shortages. >> chairman, lack of supply around housing housing area, ifo it raises interest rates would be the impact have any effect on the supply side as you are. there are limitations around availability of materials and labor and things like that nothing we can do to affect his interest rates are one factor is much about supply side you expect increasing housing supply would help the inflation? >> i think housing are much more, i do think more housing

chair powell welcome back albeit virtually. there's a great deal of uncertainty right now. you have earned and deserve another posted chair. our ongoing recovery and you defended the independence of the fed. thank you for your service had thank you for your leadership. we will spend the next three hours telling everything you've done wrong but you deserve another term. in all seriousness though the federal reserve needs to be laser focused on her economic recovery. instead i'm seeing more headlines about the fed's actions onin climate change whie a noble cause, but this should be something originating in congress and not the central bank. as far as her economic rebound we are facing some very serious challenges.ri america has a jobs problem. not long ago there weren't enough jobs. that is not the case at this time. they are more than 9 million jobs waiting to be filled and employers across the country are competing for labor offering back to work incentives and higher wages for the national federation of independentes businesses release the survey yesterday reporting that 63

chair powell talked about it the press conference.sy stuff last year where people who had positions went back to work when market activity resumed. now we are in the much harder process of labor market clearing where people have to find new positions, new jobs. unemployed people now are jobless. some of the unemployed people last year had jobs, businesses were just temporarily closed. now people frustrated by the match leave the labor force. people who retire do not come back. people go to black market activities. people get frustrated. that is why it takes a while for this part of the labor market clearing. that is why the federal reserve will keep policy accommodative for a long time, at least until 2023. jonathan: good to catch up and get that perspective. vincent reinhart, mel investment sheep investment strategy -- mellon investment sheep -- mellon investment chief economic strategist. you get the bounce back and then it stalls. it will take time. tom: the information comes along. i would look at not the focus on the next fed mee

right after this we'll hear from fed chair jay powell himself ♪ ♪ ♪ digital transformation has failedff. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. >>> michael santoli with some reaction to what we've seen the markets do so far in response to their decision, mike >> reporter: the first move wrong move rule applies, a little bit of a head fake, and that also applies after the press conference i think if you squint hard at the bond market you would say that it was on a net basis relative to the market stance before hand, slightly hawkish or nondovish. not a lot of words offered to say there was some slow down risk, we're still making progress if the fed is going to preserve flexibility and its ability to be deliberate about the tapering process, which it always wants to do, i think it's done that so they're going to consider the progress over the coming meetings, plural, that would mean september/november. it doesn't seem the market is too exorcised. no

chair powell, i just want to go back to inflation a little bit.t kind of surprised by your tone. it seems like you're just sort of warning that if inflation gets too high, the fed will act. isn't it true that, i mean, a little inflation is good for the economy, and that somehow, maybe we can get the economy out of this sort of place where we're always going to be close to the zero lower bound? isn't there a good story to tell, and you're sort of panicking people? >> i certainly don't have that in mind, no. look, as you know, we were targeting a moderate overshoot of 2% inflation for some time. we want inflation expectations to be centered on 2%. we feel like they may be a little bit below that. so the bigger picture is that that would be a healthy thing. this is a different thing. this is not that. that was the kind of inflation we were thinking about that comes from a very, very strong labor market and a booming economy, maybe. that was the kind of inflation. this is something different. this is really driven by the supply side, which is not able

up across the spectrum consistent with inflation and productivity is a good thing. >> thank you chair powell. >> thank you very much. >> federal reserve chairman jerome powell repeating multiple times these four things, no rate hikes, no tapering of bond purchases, no discussion of tapering bond purchases and no worries some inflation. i know a lot of you disagree, i might as well but he makes his case the fed did not leave interest rates unchanged at a quarter percent but remains basically frozen in place when it comes to tamping down rising prices or taking any action to do so powell playing it down the middle you can see the markets were off the lows for the dow punching higher for the s&p by five points, the nasdaq up 125 the fed seen a strengthening in the economy, powell made that very clear in improving jobs outlook but not quite there yet but balancing those risks by saying the risks remain because a delta variant threatens to extend the coronavirus pandemic, inflation even as the data shows inflation is only worsening the fed and since rise in prices are still transitory or temporar

i thought chair powell started off shaky and improved as the meeting went on. jonathan: up seven on the s&p. we'll get to the bottom of this and work out what is wrong. yields up by three, 1.2676%. you got a long weekend, haven't you? tom: i'm taking off tomorrow just to get ready for "ted lasso." you haven't watched "ted lasso" yet. you got to watch the first season. jonathan: it's going to be ok. we are up 0.2%. this is bloomberg. ♪ leigh-ann: the u.s. senate has voted to move ahead with that infrastructure package that happened just hours after a bipartisan group of senators and president biden reached an agreement on a $550 billion spending plan. lawmakers expect the final passage to last into the weekend and possibly even next week. fed chair jerome powell says there is still some ways to go before the fed starts reducing massive support for the u.s. economy. powell spoke to reporters after fed policymakers kept interest rates near zero. they also maintained their bond buying program. the coronavirus surge is hampering corporate america's plans to get back

chair powell says inflation is likely to remain for a month. the economic recovery has not left the central bank's will, monthly asset purchases. chair powell: while reaching this is substantial, further process is significant -- progress is a significant ways off we will continue in the coming weeks. as we said, we will provide advance notice before announcing any changes to our approach. vonnie: china's pushing back against the u.s.' attempt to crackdown at political efforts. a possible u.s.-led digital trade agreement in a bid to defend the u.s. power. separately, beijing condemned the plan. the white house warning individual businesses of operating in hong kong. the white house says the united states is sending more than 1.5 million doses of the moderna vaccine to sri lanka. they are being sent through covax, the global distributor for low and middle income nations. the biden administration wants to send 18 million doses of a mix of moderna, pfizer, and johnson & johnson in the coming months. global news 24 hours a day on air and @tictoc on

chair. welcome, chairman powell i always enjoy our conversations. you've been asked a lot of questions today over a wide range of topics. by the time you get to the end of the day here, it seems like everything has been asked. i have a lot of questions but you've pretty much answered them all. let me clairerify a fewthings o the standpoint of concerns i'm also the ranking member on small business, so these things affect small businesses as well, a lot of things you've talked about today. one that has been harmful is the unemployment benefit this morning there was a poll that came out that said 1.8 million people turned down jobs due to unemployment benefits another poll said 40% can make more by staying home than they can enjoying this benefit than going to work. you look at all -- >>> interrupting the chairman's testimony for a quick report on the july beige book from the federal reserve. they said the economy strengthened showing moderate to robust growth. that's a definite upgrade from the last report. transportation, travel, tourism, manufacturi

fed chair jerome powell.arkets will hang on every single word until questions get off track that will happen too. nevertheless there are two ding distinct camps of economists when it comes to duration of inflation. no one says it doesn't exist. it is unmistakable. it is really inflamed. many question what the fed should be doing if anything. joining me now stifel chief economist lindsey piegza, and former dallas fed advisor, quill intelligence ceo, danielle dimartino booth. the latest example of the insidious inflation and to it is taking, richmond fed, prices paid spiked through the roof. prices received climbed higher. danielle, they can't take all the costs and supply chain issues and force them on the public. they're trying. i know you're not in the trans power camp at all. when you see data like that it makes you feel even more that is if that is not the case what should the fed be doing today? >> that is a great question. i think there is a hawkish hint in the statement. i will be interested to see what

the s&p 500 is up, so is the dow about 54 points after fed chair jay powell testified in congress, nothingon is coming in higher than everybody thought. the dow went above 35,000. >> 3:00 or so, 3:30 on monday so that has been the ceiling. we'll see if that lasts for now. this is a familiar feel to the market, below the surface a lot of weakness, a lot of stocks are in pullback correction mode but you do have the big growth guys really working and supporting the index and what's interesting is what that really also tells you is the market is absolutely at the moment transitory inflation mode meaning anything that would benefit from a real acceleration in inflation that wassustained is really not bee working in the stock market and vice versa whether that's a verdict or ebb and flow of the style and factors and the themes and the flows is the question. >> what are your views on the small caps, the russell rolling over more significantly this week, this month >> it's tough. you don't want to see that if you're trying to stay constructive on the market you go back in history and look at perio

should we take that much from fed chair powell this week?> i think that it is a confusing one of a when looking at the dots compared to what would be the core of the market committee. i think the reason the market is paying such a heavy emphasis is that those dots became a litmus test for the framework. the idea that you want to post cyclically expand the policy, show it to me in the dots. especially the 2023 dots, basically the litmus test or anchor it could point to. i think june kind of busted that. it is not to say that the fed will be hawkish or preventative of a broader cycle. when you look at what the fed is projecting in terms of nominal gdp growth, only 60 basis points of hikes, that is still accommodative. it is just not as accommodative as we thought. for the market perspective, you get these broader divisions in the sense that there are two big ones. the first one, between the regional bank president and the board, where regional bank presidents are hearing that rates are high, labor is scarce, etc.. hearing from the staff that a

meanwhile, chair powell says inflation has risen faster than expected.is back on capitol hill today. senate democrats have found a way to help pay for that 3.5 trillion dollar tax and spending legislation. bloomberg has learned they want to impose tariffs on carbon intensive imports. the plan also includes expanding tax credits for renewable energy and electric vehicles. in china, i can growth studied in the second quarter. gdp expanded at 7.9 from -- 7.9% , a number skewed by the pandemic. industrial output estimates last month. in south africa, the number of soldiers deployed to put down riots will go from 5000 to 25,000. protests erupted july 10 after former president jacob zuma was jailed in connection with a corruption case. at least 72 people have been killed. the uprising is the deadliest since apartheid ended in 1994. netflix is making its first big move beyond tv shows and movies. it is expected to move into video games. the service will add games to its streaming platform in the next year. global news 24 hours a day, on air and on bloomberg qui

turning to chair powell for answers. >> chairman powell. >> chairman powell has a very difficult job.a mistake is elevated right now. >> inflation is front and center. >> we hear from chair powell. >> he has to walk the fine line between retaining his credibility and helping to keep inflation expectations anchored. >> he will sound sanguine on the inflationary pressure. >> the important thing is how he navigates on tapering. >> four members have been more

jonathan: do you think that puts chair powell in a tough spot?isa: it raises the concern that even the white house has been highly politicized. annmarie, i am serious your perspective as democrats come to some sort of agreement, how much inflation is looming as part of this debate and part of the pushback from republicans. annmarie: that is what you are going to hear from a public is today. you have heard it in the past. when they ask these questions to chair powell, they are going to point to the inflation number. we have seen in the past and talk about why we should have more fiscal spending we have an economy running too hot. to larry summers's point, he was making the case that it is not just economics, but the political fear is very similar to the 1960's which preceded the red-hot inflation of the 1970's. republicans are going to hone in on today. the democrats are saying we need these plans and so much of them will help grow and expand the economy, but also we should note, this is just an opening of the hard infrastructure, this $3.5 trilli

so, chair powell, my question suf' supported vice chair corals as the vice chair his efforts to weaken capital requirements through the largest banks through the stress buffer and oversaw weakened stress tests which decide how leveraged the biggest banks are. governor brainard has pushed back against your efforts to weaken financial regulations, president rosengren of the boston fed made the case that strong regulation enables the fed to be more aggressive in its full employment mandate. the president of the cleveland fed and the president of the minneapolis fed are outspoken on the need for the board to keep its eye on financial stability, weakening financial safeguards doesn't help working families it just increases the risk of a financial crisis wiping out everything they've worked so hard for. we're finally making progress as i had said earlier and workers are getting a better seat at the table. we can make the economy safer and fairer with higher capital requirements of the biggest banks. my question, mr. chair, is why have you been against stronger capital requirements and using

chair powell, my question is this.aking all this into consideration, which you have data that we do not have, do you believe this nation, our nation is facing a real problem with inflation? if not, why not? how do you testify? chm. powell: i think we are experiencing a big uptick in inflation bigger than many expected. bigger than certainly i expected. we are trying to understand whether it will pass through fairly quickly or whether we need to act. one way or the other, we will not go into a period of high inflation for a long period of time because, of course, we have tools to address that. we do not want to use them in a way that is unnecessary or that interrupts the rebound of the economy. we want people to get back to work. there are a lot of people who are not yet. i am very well aware of the risks for inflation and watching carefully. if we come to the view -- if we see inflation expectations or the path of inflation moving in a way that is troubling we will react appropriately. sen. shelby: are you concerned ab

it is more than questions about lumber and used cars and inflation going to fed chair powell, but alsoryptocurrency. it feels as though powell isn't worried about the role of the u.s. thinking it is going to lose its reserve currency status. do you hold that optimism? >> i do. we have a strong economy. we are the capital markets for the globe. we have competitive capital markets. that's why innovation and regulatory innovation is smart for us to do to enhance economic growth. it gives us international status and power as the largest economy in the world. i think that's important for us to maintain our edge and focus on innovation. the deployment of central bank digital currency is something i am interested in studying. i am looking forward to the federal court in late august -- the fed's report in late august. stable coins in the private sector could be a viable means to maintain some attributes of the central bank currency but without the civil liberty and rule of law concerns that i have. romaine: always appreciate getting your thoughts. patrick mchenry from north carolina, republica

chair powell date two. to the open starts now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: from new york we begin with the big issue. jay powell still shrugging off inflation concerns. >> this is a very consistent message. >> if you look at what the fed will focus on. >> inflation moving materially and persistently above the fed target. >> he does not know how inflation will go. >> this is a fed determined to be patient. >> if they make a policy mistake it is letting inflation run too hot. >> it will obviously be a combination of inflation and unemployment.

carl quintanilla with jim cramer, david faber markets will get another chance to react to fed chair powell when he appears before senate banking in about a half an hour. jobless claims at a new post-covid low cathie wood agreeing with fed chair powell that the surge in prices will be temporary why she says we are in a, quote, risk-off period. >>> plus, why gm is issuing an important warning for some chevy bolt owners. don't charge it unattended don't park it inside, it could cash fire. >>> and mark wahlberg's backed fitness chain set to debut at the nyc, don't miss the interview with adam gilchrist and mark wahlberg himself. inflation, why purchasing mbs isn't affecting housing pricing or demand, what'd you think? >> well, i go with what charlie scharf said, which is the ceo of wells fargo, red hot housing market he said listen, we're at the peak in used cars. that's because the last month was down 1.3 that jives very well with this early morning conference call are from taiwan semi, which is now committing a great deal of money to make the auto shortage no longer a shortage i think they'r

has signaled it may taper qutitative easing and raise interest rates as early as 2023. >> fed chair jerome powelld, the job market is still hurting. >> federal reserve chair jerome powell announced that tweaks to monetary policy may still be needed. >> it is an awfully daunting task. i pray for jay powell and i pray for the committee. doing this successfully will b a heck of a hat trick. >> i would imagine people at the fed are scratching their heads about how they are going to be able to get that faucet calibrated to a lower level when necessary. >> jacoby: and the risk of them turning off the valve right now is what? >> the risk of turning the valve off is-is economic collapse, right? you would, you would see asset values actually drop through the floor. you know, and a complete lack of confidence. the fed, by the way, would not, i can't imagine, turn it off in one, you know, sort of in one move. but when the fed does move, it's going to want to do it probably quite gradually. and the question is: will they be able to do it in such a way that doesn't create this kind of massive economic disloca

that will be at 12:00, chair powell addressing the house financial services committee. am curious how he addresses this bifurcated recovery among the has an have-nots, how key he can argue -- how he can argue his tools are helping people equally. jonathan: that is what is driving the gap at the moment, shortly. lisa: this is what of the conundrums for jay powell. how can he argue he is the bottom part when his policies are fueling the gains in markets that are really helping the top part of the l the most nasty desktop part of the -- top part of the k the most? jonathan: we will hear from citi, wells fargo in the next hour. trading clearly where the disappointing is for some at the moment. tom: there are dealing with a grosser economy. debt is up. bernie sanders wants $3 trillion. someone else wants $1 trillion. wait a minute. debt is up and yields are down. my textbook and say that. jonathan: a brick of 1.40%. let's go straight there right now. steve major, hsbc global head of fixed income research, joins us. i'm pleased to say he's going to be with us for the next 5,

thank you for taking my question chair powell, i guess i wanted to ask about the last -- when you were before congress earlier this month, you mentioned, i think, something along the lines of, it won't take too long before we see if you're right about inflation and its temporary aspect you also mentioned learning a lot more in the next six months about the economy. can you tell us more about what you mean by that when do you think you'll get a clean reading on inflation that is free of most of the distortions that we're seeing now? >> right so with inflation, as i mentioned, we look not just at the headline number, but all the components that go into the calculation of inflation and if you do that, if you look rnd the hood what you see is not that widely across the whole range of goods and services that are in the economy, we're seeing upward pressure on prices. that's not really what we're seeing what we're seeing is a handful of things that really account for the overshoot of inflation and as i mentioned, it's things like cars. new, used and rental cars have moved up in price because

chair. and thank you, chairman powell, for being with us today. as has been alluded to throughout this hearing, we have seen that supply bottlenecks and pandemic related factors have been one of the primary reasons that have led to price increases, whether it's computer chip complications with delaying the production of new vehicles, prompting a rush on used vehicles, the price of lumber, shipping container logistics, et cetera, we know that these price increases were not caused by changes in interest rates. they were caused by supply chain complications. now, just to reiterate, you have said that these price increases are transition -- transitory, correct? >> yes we said we think they will be. of course we lack certainty on that, but we do believe that's the case >> thank you and if drivers of inflation are supply chain issues and potential areas of underinvestment, do you think that these issues are best resolved through investments making that supply chain more resilient? or higher interest rates >> you know, if we see things that are temporary

the s&p 500 saw the afternoon sale, we had fed chair powell because dovish testimony. this is really giving rise to those growth concerns. that is below that 1.3% level. we have the dollar rising. demand has been up for a third out of fourth sessions -- four sessions. what was really interesting to me, take a look at the bloomberg. today, interesting, both are small caps as law -- as well as large tech. it might be that we are going to see the 10 year yield decline. when it comes to the nasdaq 100, that rotation to growth continues. when it comes to the month of july, bloomberg data has risen an average of fort hunt -- 420 -- 4.2%. you can see that passing the 50,000 level. >> this is not just the case that the longer-term growth propositions is just too compelling, i want to look at the contrast when it comes to asia tech, specifically china tech. there are some out in the markets. these valuations could be potentially lower. there is a pretty interesting case of value. take a look at that bloodbath. we are still down over 30% with that drawdown from its peak. >> it i

my question, how does it alter the thinking of fed chair jay powell, who has said many times he's concernedif that's a signal to the dovish markets >> fed chair powell has a tricky path it's trying to thread a needle with a clothesline right now he has left himself some wiggle room, right, in allowing himself to be flexible i think now is the moment to acclimate markets. if we can get a reset higher in rates, it's a lot less painful i would expect, especially hearing from the fed this week, to hear more about tapers, and once again in august i think tapering starts likely in the beginning of 2022, but i think i expect chair powell to says taper talk is different from -- and he's going to try to acclimate while the market talks about taper talk. >> i just wonder whether or not you think this delta scare, if we can call it a delta variant scare, is going to give powell some ammunition to argue for a slower pace. i think this would give the fed an execution and the declining cases from that peak nine days ago has been faster than the nine-day increase into that peak normally you see the down t

big spread with the bid and the ask. >>> fed chair jay powell testifies before the senate.bank is a way off from tapering asset purchases steve liesman joins us now steve, you have to be a linguist one word can send us into a tail spin or soaring based on the removal or word in the english language body language matters, too >> translation, joe, of letters and words, into numbers and terms and interest rates that's the story what i saw, joe, over three hours, lawmakers on the house financial services committee grilled jay powell over concerns of inflation powell yielded very little in terms of the plans to throttle back the easy monetary policy. here are three things he said. the fed keeps to the current rate until the employment goals are reached. the labor market has a long way to go and substantial further progress that is the metric to figure out when to reduce asset purchases still a way off. now powell continued to insist the inflation spike is temporary. made a few concessions to the concerns and acknowledged it was not moderately above 2%. it is possible the fed cou

chair powell will remain optimistic on the outlook. still holds out that we get a bump in labor supply as we go into the fall >> ellen, we're almost out of time i have to ask about inflation. are you still of the opinion it is transitory? we saw jumps in the cpi not long ago. do you believe inflation is transitory and are we on track of meeting 2%? >> i think a good amount of it, not all of it, a good amount is transitory we are still looking at the underlying pickup in pressures we think most of it is transitory i think with the fed's new framework to delay mondetary actions gives them the best chance to reach the 2% goal they are looking for. >> ellen, we appreciate the insight. thanks for being here. that does it for us here on "worldwide exchange. "squawk box" is coming up next make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. find our coupons in sunday's paper. here are the two battling to the line pure protein

coming just ahead of the all import fed chair powell testimony in the next two days. the next move, will it be more hawkish? bottlenecks in the supply chain driving freight higher? also, prices being passed on to the consumer. we saw that with conagra today. lumber, futures wiped out massive gains we saw back in early of 20 to anyone. lumber aside, core headline inflation pointed toward increasing prices. joe: people continue to talk about how this is likely to be transitory. we can attribute the move ongoing to used cars, certain other things that are likely. nonetheless, we do see quite a rise here. cpi, no matter how you want to slice it, basically every measure you look at. headline, core, annualized, three-month annualized, median, it is all gathering speed. for more, let's welcome democrat congressman from virginia, don buyer. thank you for joining us. when you look at this economy right now, it is growing really fast, inflation is moving up. a lot of people think it is transitory but it is higher than it has been lately. what are the key things that from your p

we know fed chair jay powell is watching this closely. to answer the question why are treasury yields so low, there's the potential answer of is it just foreign flows. we will be getting the treasury capital flows later today at 4:00 p.m. jonathan: high-yield debt one point -- high-yield at one point read your pursuit -- at 1.32%. incredible. lisa: is this a sign of stagflation, of the inflation we are seeing now leading to slower growth down the line? jonathan: that's the bond market. let's turn to the airlines. can we get some good news for the likes of delta, united, american? premarket, positive by 0.6% for united. what is in store from this administration? kailey: we will see what is in store. biden is waiting to hear from his people and whether they would recommend reopening the travel corridor going the other direction, allowing europeans to come back here to the u.s. lisa and i did this on sunday, coming from greece to new york. no problem at all. if we were greek trying to come to the u.s., we would not have been able to do that.

the fed has been worried about, and fed chair powell made a big deal about inflation expectations, andhat they want to keep them anchored. this doesn't look anchored to me. alix: not at all. thanks a lot. really appreciate it. the biden administration is issuing an advisory warning about the risks of doing business in hong kong. bloomberg washington correspondent annmarie hordern joins us with the latest. what are we expecting with this? annmarie: in no way is this saying that if you are a company that has investments and an outlook in hong kong and you want to remain there that you have to leave, but they want to make sure that u.s. businesses and corporations know that they feel that there is a big change of landscape happening in hong kong, and they want to make sure they know that they feel this way when it comes to legal issues, data and financial issues. if you are a company in hong kong, the chinese government can get access to your data. that is what we hear from this advisory, but in no way is this saying stop doing business in hong kong. but it is certainly tension adding to

a new record it was a story of continued momentum and maybe a little mini jay powell pop, if you will, because the fed chair testifying on capitol hill mostly of course got questions that lined up by political party, but on the side that you care about powell trying to keep everybody calm on inflation, but in reality is everything as under the surface smooth as it may seem tonight, guy adami? what do you think? >> hello, brian. and i don't think things are nearly as smooth as -- it's like what is that thing when a duck swims it looks so casual but below the surface the wheels -- the legs are going a mile a minute that's what's happening here dan will correctly say and cathie wood was just on talking about the fact that she's worried about deflation. steve grasso brings it up. maybe that is -- you can make a case for it, what i will tell you is and i will say it for the hundred dred time technology is the biggest deflationary force in history and we are at a point that we have never seen in our history in terms of technology, but you have inflation in all the wrong places and the fed is trying to fight this

we begin with the big issue, pushing ahead to chair powell. >> the markets will be focused on next week>> what is the fed going to do next week. >> i think you will hear still a very subtle message. >> i am in the camp that inflation will not be transitory, that the fed should ease it's foot slowly off of the accelerator. >> i'm afraid no matter what they do, you'll see market volatility. >> they will try to condition the market to a gradual qe reduction. i think the market will accept that to begin with, and then it will sink in, they should go faster. >> if you ignore inflation here, as the fed is doing, it could be harder to rip off the band-aid later. low rates now should not confuse people. the fed is in control of the curve. >> i understand why the market is doing what it is doing. my concern is, is what the fed is doing good for the economy? jonathan: the fastest 25 minutes of your life. greg peters is with us. let's start with the question, lisa. is what the fed doing good for the economy? lisa: it depends on your time horizon. that that has made it clear they have a new framewo

a dovish chair powell staying on message. treasury markets confusing just about everyone.e begin with the economy heating up. >> you are in the midst of getting hot inflation numbers. >> inflationary cpi number. >> cpi and pci print that were just insanely strong. >> you are seeing it in retail sales figures. >> inflation is going to be running hotter. >> the demand picture is robust. >> we underestimated the level of inflation. >> what chairman powell has laid out. >> inflation will be transitory. >> allowed things to run as hot as they can for as long as they can. >> is the fed in agreement that inflation will be transitory? >> the federal reserve will be late to the party. jonathan: joining us now is our guests. let's start with the idea that this treasury market is confusing just about everybody. we have had hot cpi, ppi, hot retail sales. we have talked about this every day of the week. what is going on in this bond market? >> as you mention, hot cpi, hot retail. we are seeing very little moves from the curve today. some steepening. it is the market not believing the

fed chair powell made it very clear in the press conference this week that we are a ways away from aull labor market recovery. so while we are respecting -- expecting 900,000 jobs next week, which is great, it is still leaving us 7 million jobs shy of pre-pandemic levels. we have a long way to go. but looking in the jobs of work, one thing i want to keep in mind and will be looking for is the participation rate. we have had this massive snapback in terms of the u.s. economy at a time would work worst participation is really depressed, for a variety of reasons. so until we see participation come back, we are going to struggle to post the job gains that we need to have a full recovery. romaine: bloomberg economics reporter reade pickert giving us an update. she talked about supply chain issues. we are going to continue that conversation as it wreaks havoc on homebuilders. our next guest says it has reached epidemic levels in the building industry. allie will was joining the program in a bit. -- allie wolf is joining the program in a bit. this is bloomberg. ♪ ♪ romaine: today, we are fo

it seems like a no sudden moves message out of the chair powell.en, where the markets has to have a bit of a jolt along with it >> i would love to thing we've had enough forecasting and foreshadowing of change in policy that the market will be able to digest that moment, as you suggest, without any significant hiccups, but i don't think that will be the case. there will be a couple knee-jerk reactions, of course, or when we see people who are sort of projecting a more hawkish path for the fed. i don't think it's going to be extreme, you know, because we've had so much talk about u. talk about, talk about tapering, and so much talk about the normalization of policy, and because we've had so many promises from chair powell and the rest of the fed voters, they'll continue to keep policy accommodative for the foreseeable future we're not talking about a situation where we expect many rate hikes into 2023, for example. it's going to be a normalization against a backdrop in fact, if there's challenges in the labor market, you know, economic restart getti

federal reserve chair jerome powell and his colleagues are likely to exercise patience today.olicymakers are almost certain to hold interest rates near zero at the end of a two-day policy meeting. the delta variant is seen as given powell another reason to stay cautious. stocks in china and hong kong halted a three-day selloff. state run media tried to reinsure investors shaken by the government's regulatory crackdown. traders fear the latest moves against education, tech, and the property sectors could expand to other industries. u.s. gymnast simone biles has put the spotlight on her mental health, as well as for other athletes. biles has withdrawn from the individual all-around final at the tokyo games a day after she withdrew from the team final. according to u.s. day -- two usa gymnastics, she will focus instead on her mental-health and will be evaluated daily to see if she will take part in next week's individual event finals. global global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries

fed chair jay powell is likely to be the next fed chair as well. however, lael brainard has been pinned as the potential successor should president biden choose to switch things up. she's thinking of rebuilding the post-pandemic economy. i want to hear her political intonation as she tries to addition -- tries to petition to get that role, but also what she will say about tapering from raising rates, because perhaps they are a little too connected for the fed's comfort. jonathan: they've got to aggressively de-link that. lael brainard could take one of the vice chair spots, and perhaps that would appease some of the democrats and the party. lisa: and you wonder, given that back drop, whether her words will take new weight. going forward, all said speak may be up -- all said speak maybe a little more interesting given that chair powell sort of punted to them. jonathan: i will let you run back to the deskjonathan: because david jones of bank of america has something to say, that once we start talking about it, no one else is going to get to speak. da

powell has pushed the fed in the dovish direction powell and his vice chair. the framework review has been one that has tolerated higher inflation. as you mentioned sought a more inclusive definition of full employment so, it's a dovish thing. some of the contenders that are being thought about or named for potential replacements for powell would also be dovish. either way i think policy is going to remain accommodated and growth friendly and i believe the market will like who's in there and would like powell to have another term. but i think any replacement would probably lean toward really fostering growth and full employment >> is there a legitimacy or independence issue if it's somebody who is seen as tighter with the administration? ironically if we go back for years now, the fed's goal has been to raise inflation expectations something like this could certainly do it. you could argue it's pursuing institutional goal or you could argue it might risk furthering the concerns a lot of people have about the fed >> i wouldn't worry about the fed's independence