when elizabeth says there is problems at the federal reserve, there are the federal reserve system, the governors, that you guys you were talking about in trouble for trading. there is the open market committee that screws around with interest rates and there is the federal reserve bank, which if i understand correctly does all of the clearing of monetary transactions in the u.s. if you think back a few years, the ron paul's of the world running around insisting the federal reserve was not an arm of the u.s. government but owned by a shadowy system of the crowned heads of europe. can you as a net -- expert on the federal reserve answer the question? is the federal reserve bank, is it or is it not part of the u.s. government, part of the u.s. monetary system? brian: i am glad you bring this up. we break down the structure of the federal reserve. what i was describing earlier when i said board of governors, that is the head of the system. they have a shiny building on constitution avenue in d.c. and have all of their governors and the chairman all nominated by the white house and confirme

it goes to the perception of the issue and the federal reserve and action it has taken. an: it seems like every single week there is news about a new federal virtual. -- fed official. we have a problem with the optics around the federal reserve right now. transactions and trades that took place in 2020. chairman powell has got to clean that up. to lisa's point, does this raise the pressure on chair powell? this is his fed. tom: they are going to do a study and change the rules. they are going to change the rules to what he did. you are going to see everybody do a clarita. jonathan: preplanned transactions and money in cash. tom: no, a productive rebalancing of diversified portfolios. jonathan: this is a side story. i think it is important. the chairman of the federal reserve gets around 200k a year. we have been talking about second and third year analysts on wall street are getting paid 200k a year, we are going to compare a second or third year grad to the federal reserve chair. lisa: private sector grads get a large pay check. it seems like this is the way things will

that's another reason why the federal reserve wants to push forward on this. some folks and government want to push forward in this because they don't want to allow china to set the rules going forward. to come back to your initial question, yes you probably would. the government as a program to get people mobile phones. even if you just wanted a mobile phone or digital bank currency, you could get some of those free phones from the government. the odds are this will not place and get rid of paper money. it will be a complement to paper money. if you really do want banknotes and want to keep them in your pocket or in your mattress -- or it under your mattress, you can do that. host: let's go to our phone lines and talk to don who was calling from las vegas. good morning. caller: good morning to you. i want to ask the question as an american, why in the world would americans want to follow in china's footsteps? there's only one reason. because china wants to control the digital, financial system through their digital currency. they are going to have, they are g

there are parts of the federal reserve. there is the federal reserve system.re is the governor that you were just talking about getting in trouble for trading. there is the open market that screws around with the interest rates. and then there is the federal reserve bank, which if i understand correctly, does all the clearing of monetary transactions in the u.s.. if you think back a few years, the ron paul's of the world are running around announcing that the federal reserve bank was not an arm of the u.s. government or owned by the taxpayer, but it was owned by a shadowy system with the crowned heads of europe and such. can you as an expert on the federal reserve answer the question, is the federal reserve bank, is it or is it not part of the u.s. government, part of the u.s. monetary system? guest: this is an important question. we just break down what the structure of the federal reserve looks like. what i was describing earlier when i said board of governors, that is the head of the federal reserve system. they had a shiny wilting on constitution avenue --

or a positive account at the federal reserve? that's what bon sells, a fool, and that's what the coin could be for as well as peter, i want to come back to you on this because, i mean, obviously this is a broad conversation about the state of debt that we will continue here throughout the half hour but, but the question is, what are really been negative? the down sides of holding all of this debt because it does seem like there's a lot of given taken this while the debt is a huge problem that doesn't help capitalism. it interferes with capitalism. because what happens is the government is, is taking resources away from the private sector and diverting them to public spending. and this undermines capitalism. it undermine savings and investment and all the things that we need to grow our standard of living. the problem is much of this that now is being monetized by the central bank, the federal reserve prince money to buy up all this debt. and all that is, is living a massive inflation tax on the economy. and this is only getting s

and what are the federal reserve? presidents goes out and buys $5000000.00 a stock. i mean, if that's not insider trading and if there's not rules against that, then then there hapless and we're, we're suckers for it. so yeah,

around the federal reserve. it seems like every day and we learn something new. should we delay the time for appointing the next chair until we sort through all this? sen. warren: i already said i can't support jay powell for re- nomination. my view is he ends his term, we put somebody else in place. i think the fed will be better off and our economy will be safer. david: let's talk about who that

it's my great pleasure to welcome to the stage federal reserve board governor lael brainard. and dr. brainard took office as a member of the board of governors of the federal reserve system on june 16 of 2014 at prior to her appointment to the board come she served as undersecretary of the u.s. department of the treasury for international affairs pitch is also anls associate professor of applied economics at the mit sloan school and i fed the privilege of knowing her sense of those days. and she received both an ms and phd in economics from harvard university as a national science foundation scholar. please welcome governor brainard. [applause] >> well, first of all thank you for the kind introduction, elaine. it is a great honor to join the exalted community of nabe fellows, and i want to thank the board of directors, dave, connie, and men well in particular, , and it's always nice to see you. to svon. -- see lavon. it's no surprise the recovery is not proceeding in a straight line. the economy continues to make welcome progress, but the delta variant has been more disrupted

you are now going to the chairman of the chairman of the federal reserve, and unaided -- federal reserveminated by republicans. joseph: obviously, the issues we are talking about, regulation, climate change, are issues i feel very deeply about, but they are also economic issues. in the case of david malpass, bloomberg itself exposed the attempt of david malpass to interfere with the methodology that was used in the doing business report, a far graver concern than telling your staff to make sure the numbers are right. and yet it is so strange that there has been no discussion about that intervention in the methodology, a far graver concern than what she did which is trying to maintain the integrity of the data given the methodology. jonathan: professor, thank you for your contribution this morning. joe stiglitz, the columbia university professor and nobel laureate in economics. good morning. tom keene over and washington, d.c. for the imf world bank meetings. it was me in new york -- here with me in new york, lisa abramowicz. in the bond market, treasury yields lower by a basis point on t

jonathan: senator warren on the federal reserve in the past when he four hours.ing -- the past 24 hours. good morning. on the s&p, we are -1.2%. on the nasdaq, we are -1.3%. yields higher to 1.5450%. all of the attention on nat gas prices in europe. a full round-trip from plus 39% in the u.k. to about plus 4%, 5%. tom: i'm looking at four-day natural gas off the commodity. this is the american view. it has pulled back, maybe not like what you showed earlier in europe, but we come back to where we were earlier in the afternoon yesterday. it is a pullback. jonathan: we are now negative. tom: right now, for global wall street, we are going to go geek on you, and we want you to keep up. robert lucas invented my concept of expectations. the giant from chicago was one of my first interviews when i joined bloomberg. always controversial within economics. william dudley of berkeley, goma and saks, and the former fed president for new york -- goldman sachs, and the former fed president for new york making it clear that this is a federal reserve system fighting the last wa

. >> next, treasury secretary janet yellen and federal reserve chairman jerome powell testify on the deral response to the pandemic. other topics included inflation, digital currency, and, increasing the debt ceiling. the two spoke for the house financial services committee for just over two hours. ms. waters: the committee will come to order. without objection, the chair is authorized to declare recess of the committee at any time. as a reminder, i ask all members participating remotely to keep themselves muted when they are not being recognized. the staff have been instructed not to mute members except where a member is not being recognized and there is inadvertent background noise. if you are participating remotely today, please keep your camera on, and if you choose to attend a different remote proceeding, please turn your camera off. as a reminder to all members, we will conclude today's hearing at 12:15 p.m. members who are unable to ask questions at our march 23 hearing with secretary yellen and chair powell will be given priority to ask their questions today and we will return

jonathan: did you think that 50 basis points would be seen as a small challenge for the federal reserve? tom: no, that's how silly it is. jonathan: the global head of macro strategy at wells fargo joins us now. did you think 50 basis points on a two-year would be seen as a fall -- small challenge to the federal reserve? mike: frankly it's crazy. two or three months ago, 50 would seem like a big number. but i agree with you, it's pretty crazy for that to upset the federal reserve and frankly we think that the expectations and the rate hike are seriously overcooked. i agree with your point, they might not push back to aggressively but the market is getting ahead of itself. to some degree the fed doesn't know what to expect. thinking about the source of inflation, yeah, its supply chain, but what can the federal reserve or the bank of england to about chips or the containers going from shanghai to los angeles? not much. but they can deal with expectations and i think that policymakers are concerned that expectations have become unglued. what they like to tamp it down a bit? yes. aggressive

elizabeth warren delivering a floor speech this afternoon addressing corruption among highranking federal reserve called for an insider trading investigation at the federal bank asking for them to look into the actions the fed announcing yesterday that it's asked the inspector general to start an independent review of those trading practices. senator warren joins us now for a first on cnbc interview. good to have you back on the s show welcome. >> good to be here thank you for having me. >> i wanted to start with the comments that made a ton of news and got attention calling out the fed chair as a dangerous man and i understand your criticism around financial regulation but isn't it hyperbole to call him a dangerous man and smearing instead of an honest conversation about the issue >> i've been having a conversation about the issue for years now since the first hearing with the chairman. but just remember what happened in the leadup to 2008. we had a federal reserve that just piece at a time kept deregular litting. refused to rein in the largest financial institutions it didn't happen with one bi

>> following this closely, we refer to the federal reserve beneficial targets. i would note that we have seen it decreased over the course of time. that is evident as you look month-to-month as you look at the data that came out. between the second quarter and, monthly inflation increases have decelerated by 50%. to give you more specific data points, it was .8% and went down to .4%, hence, 50%. we think the decrease reflects the view of the federal reserve that it continues to be, and many wall street forecasters that predict and project that inflation is expected to decelerate in 2022 and beyond as they come out of the pandemic. it's not about patients, we understood and knew that when we were coming in, when the president was coming into office , coming in at a time when we needed to turn the economy on, when he came at a time when unemployment was high and wages were down, demand was down, which as you know, when demand increases, that can result in an increase in prices. over time, as the economy turns on, we see transitory effects. that's what we are predi

good all team doug, come with the policy makers in the federal reserve bank and joe biden. the president thinks america is so freaking stupid, that they can make them believe that picking up a worthless shiny round object. and going hocus pocus over it magically turns it into a trillion dollars that the gang can deposit at the, at the federal reserve or the treasury to somehow mitigate that. $300000000.00 debt crisis. the way of life of ranges leading a traditionally nomadic lifestyle in the tundra is similar to a parallel reality which shop by contrast with the usual realities of megacity. while the men drive the hoods, women carry the weight of the household work on their shoulders, but no one would ever put housewife on this cd. it's not considered a profession or an occupation that you'd get a salary or a pension. however, in the vast expanse of russia, there is a spot where a housewife could secure a regular employment status. it's in the fondles that there's just one tricky bit unlike any other housewife. such a woman would have to live in a chill attent covered with

before we see what the federal reserve looks like next year?hat's where my mind went also, that he's trying to toe a line with progressive pushing the other direction and taking a hard line when it comes to the what was $3.5 trillion deal, maybe $2.5 trillion deal they are trying to get passed. the issue around fed trading goes to the heart of skepticism in the public about the federal reserve's role and power in the market that has been boosted again and again in a way that benefits people who have assets in the market. this is a political issue and has a lot of emotion attached to it. frankly, even if you say look at the details, it might seem ok. it doesn't matter even because it is such an emotionally charged debate with people who fundamentally have skepticism. jonathan: are you emotional about the federal reserve? lisa: of course. jonathan: the irony of all of this is the current chairman of the current chairman of the federal reserve has been more dovish than the president's own treasury secretary was when she was the chair of the federa

every member of the federal reserve should know that without a reminder from congress.vidently, there is a problem at the fed. we don't know the scope of the problem or how long it has been going on, what a very disturbing picture is emerging. last month, it was discovered during the economic turmoil of 2020, as the fed was called on to take extraordinary measures to support our economy, robert kaplan, the president of the federal reserve bank of dallas made multiple million dollar plus stock trades. it was also disclosed that in the same token, aaron rosen graham of the federal reserve bank boston made old people purchases and sales in relation to his trusts and other securities. a report last week revealed a third key fed official, vice chair richard clarida also traded between 1 million and -- $1 million and $5 million out of a bond fund into stock funds exactly one day before fed chair powell suggested policy actions that would affect bonds and stocks. the federal reserve makes hugely consequential decisions, decisions involving interest rates, trillions of dollars

but for the federal reserve, early november. will see earnings and see where we are. my problem is we paint q4 because we are doing it in a huge arc, tweeting everything the same -- treating everything the same. jonathan: we've been talking about this for how long? it is so well-known. tom: there is a shock. jonathan: plenty of shock on bond yields. tom: do you agree that a four point 1% inflation statistic in germany, that's a shock? jonathan: it gets your attention. does it change policy at the ecb? tom: no. jonathan: that's what matters, the reaction function of the ecb versus the federal reserve and how you push that through the fx market. real yield about 1.49. that's across asset action. good morning to romaine bostick. romaine: merck shares higher by about 3% as it has been working on a pill to treat covid-19 patients. it says that pill reduces hospitalizations and deaths by about 50%. it is seeking immediate emergency authorization. this would effectively allow people with mild cases of covid-19 to treat themselves at ho

we all agree that the jobs report today keeps like rain for the federal reserve. t's talk about what it means for the market. what does it mean? >> it means the federal taper by middle of next year. they should be down to zero net purchases on a monthly basis. it also means something very important. many people in the markets are under the illusion that bond investors set the price of debt. we don't. the central banks are doing that right now, and to return to normal, for me, normal means they get the fact out of our markets, and we are free to set the cost of financing in the market. right now, that is not happening. if it were happening and i were sitting the price of financing in the bond market, it would be a lot higher than now. of course, that would push up the cost of companies to borrow, as well. corporate america right now is borrowing that a negative real deal -- real yields. that is unsustainable. jonathan: let's talk about how sustainable and unsustainable is. we have been doing this now for more than a decade, i have no idea what normal and unsustainab

the federal reserve was created way back in 1913 by an act of congress and had two main.imize employment and keep prices stable, keep inflation under control. those are virtuous goals. but it may be a measure of the way bureaucracies work that over time, the federal reserve has actively undermined both of those objectives. it is the classic story of the firemen turned arsonist or for that matter, the covid czar who helped create covid, irony of ironies, seems like we have a lot of those, lately. in the case of federal reserve, quantitative easing, the main thing it has been doing since the financial crisis of 2008. every month, federal reserve officials print more than $100 billion new, in american currency, and they inject those dollars into our system via buying assets like bonds and security. this is not a normal thing to do, it is a radical thing to do, it was supposed to be temporary, in response to a crisis. in medical terms, quantitative easing is like chemotherapy. there are times when it can save your life, but fundamentally, it is poison if you keep saying it, i

and of course, as chairman of the federal reserve, you have a role in bank regulation. do banks or lenders increased lines of credit unconditionally? isn't there some level of underwriting involved? wooden banks have problems with their regulators if they did know underwriting for a line of credit? >> yes, no, of course, they are very careful in the lending that. >> well, i would submit that it's perfectly rational for congress to expect something in exchange for an increased line of credit. the plan presented is atrocious. it will never balance, it doesn't even propose to balance in 15, 20, 30, 100 years, there's no plan to quit bankrupting america madam secretary. now, thankfully, under the federal reserve's leadership and 13-3 authority, we had some facilities in place to prevent real financial calamity. so recently, recently, the subcommittee on national security, international development, and monetary policy held a hearing to discuss the federal reserve's lending facilities under section 13-3, and how those facilities were utilized prior to and since the passage o

do you think the federal reserve is still with harmony right now? tom: this is a big difference from the bank of england. this is a less visible argument, but this is the fed open to debate right now waiting for data. jonathan: waiting for confirmation of a second term of its chairman as well. i have spoken to a lot of people in this market and a lot of people say some things outside of the conversation on air that they are happy to share privately and they think the chairman as on a political mission for a second term. if that is the conversation in the market, don't you think that is with the fed policymakers as well? i don't know, but surely they are talking about it. tom: the observation is he speaks to the guests. what do you see in the data? jonathan: i see a lift for yields and commodities, it is a lift in a big way. tom: right now let's get to matthew brill, very important that we speak to him on the markets as well. what a conundrum. what do you do with full facing credit and corporate's giving all of these narratives? matt: i think right n

that is the federal reserve.rms of some people in this market thinking about the federal reserve cutting off those hopes and dreams of growth, this happens on the curve. tom: 57 minutes away to inflation. there's a time zone difference between new york and washington, i'm sorry. jonathan: sure. tom: 57 minutes away to inflation, the published inflation is going to be omg, we are all going to die. the adults are watching cleveland, dallas, some of the atlanta statistics. they are watching core cpi to come back down to where it was. the gloom crew doesn't believe that. jonathan: what direction has it been heading in recently? tom: it is a little bit elevated, yes. it is a little bit elevated, no question about it. jonathan: we can talk about it later. tens, 1.5682%. let's get you some movers and a deep dive on this jp morgan numbers and say good morning to romaine. romaine: overall a decent quarter, and revenue that beat by a mile. some of that came because of the additional release of those reserves. in the fic bu

the federal reserve could not get away from this now. possible to talk about the story they were pushing -- i wonder if this is not just a balance of risks story. you need to adjust your baseline. lisa: your started to see a broadening out of inflationary pressures. jonathan: mohamed el-erian joining us in about 20 minutes. i have an idea about what mohammed thinks about the moment we are in right now. equity futures up 29. a earnings season well underway on wall street. this is bloomberg. >> with the first word news, i am leigh-ann gerrans. president biden is heading to global climate talks weakened by infighting at home -- he has embraced climate action like no other u.s. president has, promising to cut carbon and shifting to electric cars, but u.s. negotiators may have nothing to show other than promises as down payments to help poor countries fight climate change is unlikely to clear congress this month. former treasury secretary larry summers is blasting the fed for risking losing control of inflation. summers said there is a genera

. >> the federal reserve at this time announcing sweeping new rules to bar federal reserve officials from purchasing individual securities. pribtsz buying stocks and bonds, in agency securities or mortgage backed securities. all of this comes in response to questions of conflicts of interest raised by large scale individual transactions by fed presidents robert cab land and rosen again. both of whom since resigned of the it comes with son beneficials including the fed chair holding assets he previously purchased that the fed ended up buying in 2020 in response to the pandemic the new rules, investments will be limited to mutual funds or similar collect investment vehicles officials will have to obtain prior approval for purchases and securities up to 45 days ahead of time and hold investments for at least 20 years. no purchases or sales will be allowed during periods of heightened market ves. reserve bank presidents will be required to publicly disclose private transactions within 30 days as board members and senior staff currently do this raises the bar high in order to assure all o

the federal reserve will be market friendly. this example fights the contradiction in the market. you predict a zero print. ellen is seeing fewer wage gains than you are any goes at t -- to the tightness of the labor market. doesn't indicate a tightening in the labor market that is beyond what people expect? thomas: i think a labor market is tight. it has changed a lot from the structural basis during the pandemic. i think a lot of people have retired from the labor market. that means there is not much slack. i would be a zero k print as a temporary factor. the overall picture is one of tightness in the labor market. a bit of a sluggishness in the labor market could be good news. we don't what the market to overheat either. lisa: this creates a conundrum for the federal reserve because they see a lot of people not coming back and wage growth going fast. how tagged can they -- tight can they make monetary policy given 70 people are left out? -- so many people are left out? thomas: there is a surge in energy prices. we are seeing

lisa: i do want to turn to the federal reserve on a political level.e internal oversight committee. it's looking at some of the trade made by richard clarida. all of these ideas keep coming out, that they may transactions that now are raising the spotlight on the fed in terms of personal interest. how much does this damage their credibility, how much risk in terms of composition of the fed heading into a very uncertain 2022. >> it will be on the shoulders of the chairman to make to the integrity of the federal reserve is maintained and that they do maintain this presence of autonomy separate from the government. we see a lot of integrated activities from former federal reserve chairman janet yellen, now treasury secretary yellen. there are a number of issues aside from individual trading that have raised some concern about the federal reserve's anonymity. it's really going to be a strategy of messaging on part of the chairman at this point. jonathan: there will be some big changes for sure. some massive changes perhaps. >> if you look at a lot of inves

pocus over it magically turns it into a trillion dollars that the gang can deposit that at the federal reserve or the treasury to somehow mitigate that $300000000.00 debt crisis join me every thursday on the alex silent. sure. but i'll be speaking to guess of the world of politics, sport business. i'm sure business. i'll see you then i'm in the see on the internet. the allows own problems and what was going to invite everybody's lloyd. that wasn't good. that was for each of the people who is going to be in that is owned by the way of life. of reindeer is leading a traditionally nomadic lifestyle. and the tundra is similar to a parallel reality, which sharply contrast with the usual realities of megacity. while the men drive the hoods, women carry the weight of the household work on their shoulders, but no one would ever put housewife on their cd. it's not considered a profession or an occupation that you'd get a salary or a pension. however, in the vast expanse of russia, there is a spot where a housewife could secure a regular employment status. it's in the far north that there's just one tri

somebody has to make a decision to fix the problems. >> federal reserve president says he -- federal reserve chairman says he sees the bottlenecks indication it's getting worse rather than better. we'll see what effect these actions from the white house have on it. >> trace: edward lawrence, live at the white house. thank you. let's bring in fox business anchor david. i'm sure you saw it the president said. he got a chance to give us a supply chain elixir and then he got a plug-in for his multitrillion dollar infrastructure bill. he says that's the fix. that's the remedy. listen to senator roger marshall this morning. >> people are not only mad. they are panicked about inflation. big spending and more borrowing is only going to add to inflation. what president biden is doing, the policies to make the labor shortage worse is only going to drive inflation up more. >> trace: do you think we can spend and borrow our way out? >> the congressman's right. it's like pouring gasoline on a fire, not water. inflation is a tax. let's start there. the president famously said he wasn't going to tax

chair jay powell after that news conference and decision with the federal reserve. we have heard so far from the senate planning committee chair is there are two tax codes in america. the first is mandatory for workers who pay taxes out of every paycheck. second is voluntary for building to defer paying taxes for years, if not indefinitely. tom: it is. this is the debate right now. a lot of people saying there has to be changed here, but it is the way you do it. let's bring back these subsections, 170 pages here. i picked this up very quickly, page four, and talk -- on top of the document in process. subtitle a elimination of blah blah blah, any action subscribed subsection b1, with respect any tradable covered asset should not be taken into account in determining the holding period. i talked to her accountant. annmarie hordern come our bloomberg washington correspondent. annmarie, is it anywhere close to what we will see? annmarie there's a great question. there are concerns in the party and whether or not they can push the billionaires tax through. first, you have

with christopher russo, research fellow at george mason university proves that working at the federal reserve in new york and chicago, the house acted yesterday to raise the debt ceiling ahead of potential defaultnt, why do we have a debt ceiling in the first place and why do we keep creeping toward potential default clips? >> thank you for having me on. the debt limit began recently in our country's history, created in 1917 as a way for that u.s. treasury to more ably fund the war up until then, congress usually authorized each individual issue in the treasury debt and issued it for specific purposes. issuing debt for the panama canal but with world war i massive increase in government spending, it no longer became a reasonable thing to do so the debt limit on the one hand gave treasury more ability to better manage the treasury cash and debt on the other hand constrained treasury to make sure they were issuing too much debt relative to the muscle spending congress authorized brief debt limit evolved over time and more recenter years, is been used kind of as a backwards the spending or at le

economy with crystal, research fellow at george mason university and previously worked in the federal reserve bank and ines new york d chicago and that has acted yesterday to raise the debt ceiling ahead of potential default. but we haven't debt ceiling the first place in oneli week keep creeping towards these potential cliffs. >> first, thank you so much for having me on and i'm really excited to be a cspan the debt limit began he recently speaking, created in 1917, as a way for the u.s. treasury to be more able funded the first world war and up to that point, congress usually authorize each individual treasury debt. for specific purposes for example issuing debt for the panama canal with the advent of world war i and the massive increase in government spending, and became a reasonable thing to do so the debt limit on one hand, the treasury's more ability to better advantage the treasury's cash and debt but on the other hand also to make sure the treasury was not issuing too much debt in the amount of spending that ought has been authorized. involved overtime and recent years, as you know th

i understand there may be a free seat at the federal reserve soon. i'm joking.ohamed: what tom said about marmite, i'm in the u.k. and i love my marmite. i do. jonathan: it is an acquired taste. you are not. thank you for being with us. tom keene, that point on emerging markets i think is so important. we are seeing real hikes over the last several months. tom: i can't believe i am saying it after 2008 and 2009, greenspan's famous speech at the imf, some of the other moments, the tension here is extraordinary, and it all devolves back to an imf of another time and place, and the imf of the future, which is the emerging markets. jonathan: we will continue that conversation through the week for the imf-world bank meetings. your equity market advancing 0.7%. morgan stanley results, seven: 30 eastern, 17 minutes away. from new york, this is bloomberg. ♪ pres. biden: the port of los angeles announced today it is going to begin operating 24 hours a day, seven days a week. this is across the board commitment to going to 24/7. this is a big first step in speeding up the

and we're now hearing from the federal reserve that it has no plans to push for the manning of bitcoin. is that helping to fuel this price run that we're seeing as well? absolutely, there's a lot of negative sentiment surrounding because with the impending regulation and china banding it again, but these comments on the fcc team to have enfolded investors. so these institutional investors have been provided with some level of comfort now, because regulatory uncertainty is what's in keeping them out of the market. and when you're make hedge fund, you're not as nimble as an average retail trader, so they have to be more risk adverse when it comes to dealing with crypto. but these common theme has cleared up path temporarily. so you see institutional playing catch up again by hand over fist within the last few days. the last couple days we've seen the spot market price, a big point jump as much as 3.5 percent within a 5 minute window will show that there's some pretty big spot here. and also the technical patterns. for trader, they're lining very nicely for another strong bull. and his bi

vonnie: the federal reserve will been top officials from buying individual stocks and bonds and limit active trading. this follows an embarrassing scandal that led to two federal departures. senior fed officials will now be limited to purchasing diversified investment vehicles. chinese regulators are nudging didi towards a listing in hong kong. it raised the idea with executives from the ride-hailing company. and trunk alliance. didi shares posted higher. china has condemned the european parliament's decision to adopt a report looking for greater ties with taiwan. europe support for the self ruled island could have egregious impact according to beijing and violates the one china principle. the eu reports seeks a two way investment agreement with taipei. the u.s. and five european governments have resolved a dispute over digital taxes on american tech giants. the deal was reached after a broader global agreement to overhaul levies on big corporations. under the deal, the european countries will maintain digital services on companies like amazon and facebook. once a global tax deal come

that's another reason why the federal reserve wants to push forward on this.lks and government want to push forward in this because they don't want to allow china to set the rules going forward. to come back to your initial question, yes you probably would. the government as a program to get people mobile phones. even if you just wanted a mobile phone or digital bank currency, you could get some of those free phones from the government. the odds are this will not place and get rid of paper money. it will be a complement to paper money. if you really do want banknotes and want to keep them in your pocket or in your mattress -- or it under your mattress, you can do that. host: let's go to our phone lines and talk to don who was calling from las vegas. good morning. caller: good morning to you. i want to ask the question as an american, why in the world would americans want to follow in china's footsteps? there's only one reason. because china wants to control the digital, financial system through their digital currency. they are going to have, they are going to

michael: if you're a federal reserve official you want as many as you can get.e not going to happen october payrolls report at the time of the november meeting, so they will have to go here and add in supplemental indicators like the ice and reports, things like that to decedent -- to see if they could discern a trend. a lot of this may be delta related. there may be seasonals in here they can take account of. if we are not seeing the leisure and hospitality space rise and we are the labor force fall, it does appear there is still covid effects in this data. jonathan: downside surprised, 194,000. a lot of details. here the price action. choppy off the back of this number. on equities it we advance a little bit. yields in about half a basis point. unchanged on tens. in the fx market, the dollar showing some weakness, 1580. prude -- crude state positive. michael: here is a reason the number declined. we saw 144,000 state education jobs go away in the month of september. seasonally adjusted. about 500,000, 600,000 added in the local government education numbers in

the federal reserve will be in the mid-threes by the end of next year. it's important to be on your toes, it's a -- it's important to be active with portfolio management to be thinking more about security selection and regional selection, one final note, it is flattened reasonably and that something that happens later in the cycle. the federal reserve is raising the short-term rate. tom: two cent spread this morning. where is two year yield to the matters to you, 0.44%. where is the two year yield a tip point or a critical point? tony: relative to other yields it matters a lot. it will tell us about the two-year window and we know markets looking at shorter-term interest rate and forward interest rates is projecting the federal reserve increase its policy rate sometime next year. the markets pending in several interest rate hikes. this two extraordinary things about the spread, one is the fact it starts to flatten earlier in the cycle when we've seen since the 1980's. in the last three cycles, their spread between the two-year and the 10-year note was as

taylor: the economists and the federal reserve keep telling me this is transitory. they looking at different data? chris: they have been saying that for quite some time, but how long is transitory? this will go on through to next year. nobody's individual interest rates can do anything about the supply chain. you need lower interest rates to try to stimulate more investment and get more production capacity , so this is an usual -- an unusual dilemma, but this is not transitory or short-term. this is the first will sign that this is still getting worse, no sign of these forces abating yet. taylor: chris williamson, thank you. we appreciate your time. coming up, the next guest also says inflation is not transitory , kathryn rooney vera joins us next. this is bloomberg. ♪ >> the choice of doing nothing is not an option. >> we have seen an increase month after month of a surge in demand of guards driven by e-commerce but also this shift away from services towards goods. >> it is a market influx and unlike the recession or the bankruptcies of the tsunami that have caused

it is quickly becoming a test for the federal reserve.hey want to separate -- they said they want to separate guidance from tapering and signaling of rights. this conversation is happening without chairman powell. tom: steve matthews wrote a terrific article on where the fed is in this debate that jonathan outlines. two good guests to give you a monday brief. first, enda joins us. chinese growth is under 6%. what is the significance? >> two things going on, you have this energy crunch which has hit pretty hard. factories were told to curb their use of electricity. the result is that they are restricted. that drag down the initial side of things. the authorities are intervening. they are trying to get a cool or -- cool or get a handle on risk. that was a big drag on growth in the third quarter. the upside was retail sales. consumer demand was better than expected in the month of september. lisa: was the surprise the headline number of 4.9% gdp growth or was the surprise that it was not lower? >> indeed, it was a question of how much weaker

the new york federal reserve president said he sees elevated inflation for at least another year. what is the timeline you are looking at for the long-term, especially since this reconciliation package could go into effect over the course of 10 years? how long should americans be expected to wait for those prices to come down? sec. psaki: the federal reserve and the oecd and others have said inflation is six acted to come down. they continue to say it is transitory. it is a tenure package, but what is important about the package is that several economists have conveyed it would help address inflation over the long-term, which is something i think is in the interest of the american people, the public, and future governments. >> in the last 24 hours, north korea's press agency say they have reopened the hotline to south korea. what concerns do you have about the proposed -- i don't know if this is real -- the alleged missile? sec. psaki: we of course support and continue to support inter-korean dialogue and engagement and cooperation and we will continue to work with our r.o.k. part