lead. >> don't fight the fed.the one institution that has a printing press in the basement, and there's no limits to how much it can use. that is what makes the fed such an influential player in the marketplace. keep an eye on the treasury market... >> jacoby: el-erian's firm helped advise the fed on it's qe experiment. he told me the expectation was that the low interest rates and qe would have a strong knock-on effect on the wider economy. >> that was the theory. in practice, the fed was very successful, in terms of moving asset prices. it was much less successful in moving the economy and the result of that is we got the largest disconnect ever between main street and wall street, between the economy and finance. >> the banks are sitting on their butts and they're still not lending money. >> jacoby: one of the problems was that the banks were holding on to the money instead of making it available to borrowers. >> the banking sector is broken. >> jacoby: at the fed, andrew huszer was disappointed by what he was

the fed thinks the data is mixed. high inflation but you have the labor market underperforming the second one is the market the market is giving the fed leeway to promulgate policies. and the 13 we get in a few minutes is the political backdrop the fed does not make policy in a vacuum we'll see how much pressure the federal reserve chair gets on the policy. >> i should let you o, a reminder we're speaking exclusively with double line ceo jeffrey gundlach who you know is going to have reaction to what the fed is doing, the chairman is saying today. and just where we are in the market remember, it was at the very beginning of the year when mr. gundlach was with us and suggesting the market was trading at high valuation. s&p up 15% since then. you can only wonder what he might be thinking now and what his reaction to jay powell will be here is the fed chair. >> monetary policy report. at the fed we are strongly committed to achieving the monetary policy goals that congress has given us, maximum employment and price stabi

fed will have to keep working through.nflation is finally getting back above the 2% target. the fed and the market, and us, have good expectations that there is a big element of this that is transitory. above trend growth, inflation hitting its target. from the fed's perspective, that is what they have been shooting for for the year since the financial crisis. i agree with lisa's point, this is a lot of balance sheet purchases, but compared to previous episodes, the fed has experience navigating and unwind. you would expect the reduction, which will be an ongoing issue in 2022, is not going to be market disruptive. jonathan: greg peters, your reaction? greg: the fed is doing exactly what they're supposed to be doing. the narrative around financial stability is a red herring. they have to talk about it but they have no control over it. this has been a shock to the system in a way that we have never seen before and they responded in kind. we come out of this from an economic standpoint much stronger than anticipated. i think

caroline: we want to thank you so much, claudia sahm, on all things fed, fed coins, fed account.ay powell talked about the risks that still lie in the delta variant and we just got breaking news that the texas cases has -- have hit $10,000 a day since february and we will keep a close eye on how the use effect the rest of the united states. from new york, this is bloomberg. ♪ romaine: all right, pretty uneventful day for markets. we saw most of the indexes close higher on the day because of the earnings that we got yesterday and this morning, including google. there were earnings after the bell tonight, including qualcomm . they were higher on the day. facebook, lower. paypal, lower. lambda research, also lower. concerns not only on how they did in the recent quarter but also against how they will do going forward in the face of a delta variant that seems to be taking a bite out of economic activity. real yields this week are at record lows. caroline: signaling not just inflationary pressures, but growth, the fact that the u.s. has not managed to move the bar significantly in a l

you you think the fed -- or you think the fed is going to choke off growth and reflation. which one is it? krishna: it is not that clear cut, it is a mix of both scenarios. first, i think that the fed is right and the data to some extent will probably prove them right over time, but we do not have that clarity today. so attributing this to what the fed did, i do not think that that is exactly correct. i think that the key point is in 2022, 2023, growth is going to slow down, inflation is going to slow down from these elevated levels. but there is room between now and 2022 and 2023. what is reflected today is earlier the market believed the fed would let it run hot for a long time and not do anything. and i think that the last -- demolished that end. and the fact that you have a liquidity bubble in the marketplace. that may actually force the fed's hand earlier than they probably would've liked. just look at what is going on in money markets. you can see there's liquidity everywhere and it is flooding the system. jonathan: so you think an earlier taper? krishna: i think the

what is the feds responsibly? remember, the fed is easing. month the fed is easing by printing their new $120 billion of effectively electronic money to buy bonds. why are we continuing to ease? that is a key question. explain why we are continuing to ease, and what benefit is that providing an economy which is now running hot on inflation, where gdp later this week is probably going to come out around 8.5%. the entire cap around potential gdp growth is probably close by the middle of this year, as i think we will see with the gdp report. lisa: we have been talking about how treasury yields have fallen since the fed took a markedly more hawkish tone. could we see treasury yields rise if the fed does remain on hold in this meeting? john: you could. but to tom's point earlier, he said we haven't talked about re-you'll yields -- about real yields, and i congratulate tom for always bringing it back to consolidation of real yields and inflation breakevens. he will pay me later. [laughter] the entire rally in the bond market has been in lower real

when the fed subordinates its price stability mandate to maximize employment, the fed risks failing onoth fronts, because you need stable prices in order to achieve a strong economy and maximize employment. this is not a partisan argument. prominent democratic economists including larry summers and many others have expressed their concern about the risk, the risk of rising and persistent inflation. lastly, i just want to acknowledge the unique and crucial role played by the fed in our economy, and some of the responsibilities that attend to that. the ability to direct interest rates and control the money supply is an extraordinary power, and congress has given the fed a great deal of operational independence, in order to isolate it from interference, but congress also gave the fed narrowly define mission. -- a narrowly defined mission. i'm troubled by the fed especially some of the regional banks misusing this independence to wade into politically charged areas, like global warming and racial justice. i would suggest that instead of opining on issues that are clearly beyond the fed's m

it is that shift in tone from the fed.n order for the fed to convince the market otherwise, we think they need to get taper out of the way, get that launched, so they can start talking about the timing of first rate hikes. two, they need to see evidence that some of these inflationary pressures are transitory. it sounds like they are a lot less confident in that, at least that they are seeing risks that it may not be as transitory as they originally thought. as long as there are those questions, the fed will have a hard time being very dismissive of inflation. jonathan: let's pick up on point one on tapering. you know what happens next, the sequencing kicks in. how do they avoid that? mark: that is the challenge for them. what the market is hearing from them is that they are marching to taper. and they are. we think they will make the announcement at the end of the year, starting early next year, updates in january. but when the market here is that from the fed, they think tapering is tightening. the fed will have a diffic

, we appreciate your time the countdown is on to fed chair powell's news conference the former fed governor will tell us what to expect and whether he thinks the fed is at the risk of falling behind the curve. more analysis, market reaction straight ahead on "power." usaa is made for the safe pilots. like mac. who can come to a stop with barely a bobble. with usaa safepilot, when you drive safe... ...you can save up to 30% on your auto insurance. usaa. what you're made of, we're made for. get a quote today. ♪ ♪ experience, hyper performance that takes you further. at the lexus golden opportunity sales event. get 0.9% apr financing on the all 2021 lexus hybrid models. experience amazing. 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. >>> some volatility in stocks and bonds. says the economy continues to strengthen, make progress to policy goals fed chair powell's press conference is just a few minutes away, about ten. joining us now

edward: i look at the fed shorts capitulating. the fed has been telling us that they are in a new regime. this means we will to this average inflation targeting. they are not going to let the economy stagnate. they are going to let it run. but, in fact, people were fighting that. that is why we went to 1.7%. now, all of the people not fighting it have thrown in the towel, potentially at exactly the wrong moment. tomorrow, we get the cpi, let's find out what it says and what the fed says. romaine: so far, the messaging out of the fed seems to be relatively consistent, at least for this year, next year, maybe 2023, you don't need to worry. edward: when you listen to the fed president, the regional president, they are starting to sing a different tune. they are talking about, when should we taper, how much should we taper? before, it was all about jerome powell saying, we are even thinking about thinking about releasing accommodations. now, suddenly everyone is talking about, when is the taper going to happen? to me, there has been a

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 fed possibility to maintain price stability is threatened -- the fed's ability to maintain price stability is threatened by inflation. chair powell, my question is this. taking all of this into consideration, you have data that we probably don't have, do you believe that this nation is facing a real problem with inflation? and if not, how do you justify it? chair powell: i think we are experiencing a big uptick in inflation, bigger than many expected, bigger than i expected, and we are trying to understand whether it is something that will pass through fairly quickly, or whether in fact we need to act. one way or another, we are not going to be going into a period of high inflation for a long period of time because of course, we have tools to address that. but we don't 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 back to work yet. but let me say, i am very well with -- well aware of the risks to inflation. if we come to the view or if we see inflation expert p

testimony from fed chair jay powell. we begin with the big issue, what is behind these big bond market moves. >> there is technical, fundamentals, and policy. >> we have seen technical short covering. >> people being forced to cover duration underway. we have confirmation that what was going on was mainly technical in nature. >> i think it is absolutely both. >> we have a combination of the two. >> this kind of re-collapse of longer-term interest rates. >> there are fundamentals at work here as well as technical factors. >> inflation is likely to decelerate. >> we have passed peak global growth expectations, priced in stimulus. >> we are at the half and it is 1-1. jonathan: we have an interesting situation going on here, we have a great panel. sue batra by, and jim bianco. sue batra, i want to begin with you. what is going on? subadra: i think i have to agree with the guest earlier on, it was mostly driven by technicals, positioning in the markets was very short for a while. you have seen these positions getting unwound.

now, let's look at what the fed has been doing and what the fed is causing. and we have some interesting takes in the 2nd half of this 1st half about what the fed is doing . taiwan semi conductor is hiking chip prices up to 20 percent t f. m. c's chips are in a 1000000000 products, including i, phones, computers, and cars. the wall street journal writes and a new profile of the company, the company has slowly become the world's 11th most valuable company, with a market cap of about $550000000000.00. the companies reported 17600000000 profits last year on revenues of about 45500000000. t s m. c makes around 92 percent of the world's most sophisticated chips, very poor ads. they have a monopoly position. now what's interesting here is that micro champs are, let's call it the steel of the 21st century. steel was the primary component to build the iron age, you know, to build the modern infrastructure, the railway and paul buildings. but now you know, summer conductors are really, they're the basic building block of our global economy. now here's the interesting

the fed is contemplating more mortgaged back securities.e could change the metaphor from a world on fire to a world in stage deeply emersed emerseda flood and shooting a fire hose and [inaudible] i do -- liz: we're going to flood and the fed is shooting a firearm. i am envisioning that right now. i don't see any action let alone picking up any kind of weapon although he keeps promising they will do something if they start to see inflation is lasting a lot longer. but it would have to be a lot longer according to jay powell says it has to last year after year after year. we can expect to pay higher prices for now without the fed doing anything. you have to explain to our viewers, what is the danger, jim, not doing anything on tapering and not pulling back at least the mortgage-backed security housing portion of this? >> well inflation kind of keeps in -- and there is no press release announcing now inflation is serious -- [inaudible] that doesn't happen. what does happen is the consequences of rapid money growth -- economy and people pay hig

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of what the fed does? last week coming into this week, going into that print on wednesday or tuesday that we had cpi. cpi came in hotter. last week, the big discussion i had with everyone in fixed income, i'm not interested in the data. i want to understand how the market will respond to that information. if we had a hotter cpi print, what will the yield curve do? would curves be higher or lower? in the initial aftermath, what we had was a flatter curve, and what we had at the front end was a bit of a selloff, yields higher. that spoke to this idea that hotter inflation would bring the fed in early and choke up growth. this idea that front in the yields would rise and longing deals would fall. then we had that really messy auction on the 30 year, literally three, 4, 5 hours after that. after the 30 year auction, the mess that we had an the 24 hours after that, i'm as confused as the next in. i have no confidence or conviction what is happening in this bond market at the moment and how are a response to any

i guess i'm just not seeing that >> i know the fed has a statutory obligation to promote price stability and maximum employment what are your thoughts on the relationship between monetary policy and inequality? what do you take to be your obligations with respect to wealth inequality? >> we don't take inequality as a mandate. we think we can -- we have these disparate which have gotten worse. we see those as weighing on the potential for the economy. i think everyone does. if you don't have a chance to take part in contributing to and then benefiting from the economy, then the economy is not all that it can be now what can the fed do? we can support maximum employment that's what we can do. we can push the job market to a place where consistent with our price stability obligations where jobs are widely available, really, though, we're not -- we can't be the lead on it. it's fiscal policy and education and things like that, that will really matter much more over time than monetary policy. i think it's appropriate for us to call it out and to use our tools as we can. >> and my final questi

louis fed president jim bullard. think that was a classic mike mckee clinic on some of the issues. a key issue he has cited repeatedly, i think it is important that he keeps asking this, what do we get from one hundred 20 billions a month -- from $120 billion a month that we would not get? tom: i think james bullard has been way out front about his interesting theory on regime change. and i think the fed president inserted well. it gives you an idea of the debate that is going to take place in the coming months. from new york city this morning, good morning. for our audience worldwide, this is bloomberg. ♪ ritika: fed reserve chair jerome powell said it is too early to scale back the aggressive support for the economy. he told the house of financial services committee that the debate over bond buying will continue at the central bank's upcoming meeting. meanwhile, powell said inflation has risen faster than expected. he's back on capitol hill today. senate democrats have found a way to help pay for their $3.5 trillio

can you provide us with an update on the fed's current work on this topic and the fed's broader work to address climate change in our financial systems, particularly with how these risks can impact our broader economy through supply chain disruptions or disruptions to massive industries such as agriculture? >> sure. the feds's work on climate change exists for supervising financial institutions. as far as individual financial institutions are concerned, as supervisors, we want them to be aware of and capable of managing all the risks that they run, including the risks to their business models from climate change. we are in the beginning stages of working on a program that will engage with the financial institutions and make sure that happens. on financial systems more broadly, we have an overlapping effort that looks carefully at the broader financial system and asks, how will climate change affect financial markets and other financial institutions that are not banks, for example? insurance companies and asset managers. those are two assets we are working on, and that's what we repor

. >> the fed is incredibly opaque. if you give it a lot of goals, it doesn't have many tools to hit all those goals. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. a simulcast, number radio -- number radio, bloomberg television -- bloomberg radio, bloomberg television. conference is going to speak at a conference call to me, the shape of banking is the boom economy. pepsico is leading the way. jonathan: let's talk about the shape of investment banking because that was on fire. trading was soft year on year. but when you look at investment banking revenue at jp morgan, that was a record quarter, up 25%. look at goldman, up 36%. that is what counts for what happened in trading. revenue banking was really stellar. the fee-based revenue. we spend a long time talking about the guild curve income, all of that good stuff, and yet it is the fee-based revenue that has really delivered this time around at these banks. tom: their diversified platform as well a

and of course the fed is -- the fed does have absolute iron-fist control over short-term interest rates have been die-hard in the commitment to leaving short-term interest rates at zero i think they borrowed that language from me from your show, judge where i said the fed isn't thinking about thinking about thinking about raising interest rates. and they actually -- they actually bore ohoed that language but they're starting to back away from it one layer of the onion at a time getting back to you know we have to start respecting this inflation data at some point. >> right. >> i think, you know, i think a five-handle on the cpi is sort of shocking. i think ma 9 handle on the ppi is truly shocking. and, you know if we get even two more months of this type of data, it's going to necessitate pa reality check by the fed. >> we will talk more about that after this quick break we'll be right back with double line ceo jeffrey gundlach in our "halftime" exclusive two minutes. visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond. experience our advance standards saf

if that continues it is a develop it from the fed perspective.n: for many people september and q4 is huge. it will be massive to shape some of these debates. goldman out earlier suggesting the service sector recovery will take more time. where are you in the team at deutsche bank on that argument? matthew: this is the area of debate. coming off durable goods spending, housing coming off, we anticipate services will help lift the economy to a stronger growth profile. obviously the return of covid at the delta variant is the downside risk to that. i view it as a downside risk, not something that impacts -- if we look back at these past waves, they were not as impactful as we were anticipating. i anticipate that will be the case again. when we look at the states that have lower vaccination rates, there less likely to bring back restrictions and less likely to see people pullback from economic activity. it is no doubt a downside risk to growth, but that is how we are viewing it, not affecting our baseline outlook. lisa: if you dig under the headline

fed commentary, they are parsing every single word. the fact of the matter is they have never been here before. we shut the economy down overnight. then we proceeded to try to reopen things. the interesting thing as we have got to this point is to figure out how much stimulus is actually in the system. investors have a lot to look for but there are a lot of positives going on in the economy itself. >> are you doing any kind of inflation hedges if you think there is a debate as to whether this is a one-time reset? >> one of the best long-term hedges against inflation is equity markets and especially lending into the growth of that because inflation for the right reasons which this one would be is indicative of growing economies that allows for pricing powers. we have seen some of that pricing power. if it levels out at a reasonable level, you can sustain this uptick. being able to pay higher wages, people can spend more and it can feed on itself in a very positive way. >> on a day like today, we have all of the growth stocks as well wit

from the fed. officials single taper -- signal tapering could come sooner than expected. bloomberg learns the ecb plans to raise its inflation target to 2% and allow room to overshoot when needed. more nikkei uncertainty. japanese media reports events in tokyo may have to take place without spectators. global pandemic deaths now top 4 million. it is just gone 7:00 here in london this thursday morning. mark, what are the markets saying to you? mark: good morning. there is a lot going on. it has been an exciting week. we are seeing classic risk aversion, not extreme, very broad, but very soft and mild. many stock markets are just off record highs, so it is not exactly any reason to panic. it is mainly focused around china today. there are expectations that there might be a rrr cut in china. that gives credence to the idea that the chinese economy is struggling a little more than people were thinking a while ago. when you combine that with the fact that the chinese government targeted tech companies,

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moving back over to the fed.ay powell is defending the central bank stands to keep providing support to the u.s. economy. that's as inflation runs at uncomfortable levels. take a listen. >> this is a shock going through the system associated with reopening of the economy. it has driven inflation well above 2%. we are not comfortable with that. that particular inflation is unique in history. we don't have another example of the last time we were open to $20 trillion economies. we are trying to understand the base case and the risks. dani: his colleagues urge policymakers to move forward in reducing stimulus. he spoke exclusively to mike mckee. >> i think we are in a situation where we can taper. i think setting those parameters the right way, we don't want to draw markets or anything. i think it's time to end emergency measures. dani: the chicago fed president thinks the fed could again to taper bond purchases by years and as employment slides closer to 4.5%. >> if unemployment is at 4.5% at the end of the year an

they don't want the fed to taper anything. and that is the needle that j powell is going to have to try and thread at tomorrow's f one seed press conference. so absolute, if you're selling houses, if you are a bank lending on mortgages, of course you want them to keep pumping that money. and so people keep coming in, they keep buying, they keep pushing those prices up. everybody in the housing industry for the most part wins except for of course the buyer. danielle, now i want to talk about this because this goes along with that. you know, obviously there's a concern that if policy has the wrong thing or the fed ex to abruptly, it's going to have a drastic impact on the market. but when we continue to see record high after record high, isn't that ball inevitable at some point? and i mean, who, you know, it's going to happen, the markets will eventually have to correct, we know this, but why is it the fed responsibility to even continue to prop up markets with all of this? no, it never has been the fed responsibility to act as

. >> there are consequences of the fed asset purchases. the markets are awash. >> i think we are still a long way away from rate hikes. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: one more trading day. you've made it. from new york city, for our audience worldwide, good morning. this is "bloomberg surveillance ," live on tv and radio. alongside lisa abramowicz, i'm jonathan ferro. together this morning with kailey leinz. mr. kenne back with us -- mr. keene back with us on monday. amazon stock down by almost 7% in the premarket. lisa: slowing sales going forward. channeling tom keene as part of his contract, he says that the pendulum, that is what we are facing today. in all honesty, that seems to be the trend, the idea that higher prices is leading to slower growth, and the idea that we are leading to peak growth in what follows, jan hatzius summed it up. how much does this weigh on a host of companies that were thought of as unstoppable? jonathan: gdp growth north of 5%, and we are ha

phil, you like the fed. kenny and gary are not fans of the fed.eir i are, i will start with you, do you really want to fight the fed right now. >> no, you never want to fight the fed. i think this has dragged on way too long. in any event you should never fight the fed. i think that is quite clear based on what happened. with the rates as low as they are, with all the stimulus coming from the fed as well as the government, investors have no other place to go. where will they go to search for yield? where will they go to earn money on their money? money is forced into the market. no, you shouldn't fight the fed at all. as much as everyone is looking for a pullback myself included every time we get half after pullback, you get the fomo fear, and they are afraid of missing the next move and we go right back up. i would never tell anyone to fight the fed especially where we are right now. charles: phil, you applauded the fed's actions and you said 2% here we come. you said it would have happened right now. i give you kudos on italy. what is up with in

we are at over a trillion dollars for the fed's balance sheet. -- $8 billion dollars for the fed's balanceheet. ideally for chairman powell, he would wish he would never have to change policy. that is the issue. there is a hint here that they were just talking -- a hint here that they were just talking about taper. what does it mean to be just doing that when cpi inflation is going on at levels not seen in decades, and a talk has just begun about taper? my concern is if they begin the taper only at year end, for example, and if the communication is not well done -- and this fed is not known for good communication -- then you have the risk of a serious market meltdown sometime in early 2021 or after the tapering begins or is announced. haidi: always great to have you with us, komal sri-kumar. a big day for robinhood. the disruptive trading app's sharess sli -- shares slip below the market price, ending the day down. let's get more from our deals reporter. this was disappointing and also quite embarrassing given expectations of a rally from their retail supporters ahead of this. >> it defini

we are watching the fed just like you are watching the fed. what is going to happen on rates is going to determine those multiples on the market, and today, with rates as low as they are, the multiple is not high on the equity market. it comes back to what is your best alternative to equities. we remain overweight equities tactically today for our investors. jonathan: let's talk about the regional breakdown. how are you leaning towards international the moment, with all of the headlines in china and elsewhere? beata: international is not one monolith either. you've got to really split up what is happening in the developed international markets from the emerging markets. as you know, china is about 1/3 of the emerging markets benchmark. so let me go to europe. they have been lagging from a vaccination perspective. as you look at the u.s. market relative to our vaccination rate, as vaccinations went up, the market rallied. we think the industry is primed to follow suit. the european market is leaning into financials, industrials, more consumer d

what could the fed do in that environment? tom: the fed will be data-dependent. it may they ever been -- have ever been. i will never be more focused on what we will see from earnings, and i can't convey how this earnings season is different. jon: that kicks off july 13 with jp morgan. 42 point 92 on s&p 500 futures. advancing almost 1.1% -- .1%. down 12 points on the nasdaq 100. yields of about one basis point, and euro-dollar kicking off q3 at 119. tom, just for you, 74.16. tom: opec is in the mix. jon: i agree. tom: the bentley was down today so i took kenny in the lift. [laughter] lisa: we are getting to oil in just one second, because in the day ahead, we should get a sense of what we could expect with respect to supplies coming back online. 8:30, let's get started with jobless claims. the initial claims of the week. i'm interested to see how much further this falls. the expectation is for 380,000 down from 411,000. last week, again, the steady climb lower. at what point do we reach a ceiling that perhaps labor market is improving more dramatically as they j

inflation is that the market of the fed anxiety. michael of bloomberg had jim bullard and charles evans on this issue. >> it is clear that some of the inflation will be temporary. how much and how much feeds into more persistent process is the question the committee has to wrestle with going forward. i think we are already above our target on core pc inflation. the committee of the economic projections is projecting 3%. that is excluding food and energy prices. that is more inflation they may have seen in a long time in the u.s. some of that will hang on and persist through 2022. we had hotter reports then we anticipated recently. there is some possibility we would ratchet up our expectations for inflation to 2021 and 2022. this is a different situation than we faced in the past. >> inflation has picked up stronger than i was expecting. i was expecting us to go above 2% this year because of reopening base effects where prices dropped a lot last year. inflation was expected to be well above 2%. i am looking for core pce to be 3% year

fed official after fed official, especially the doves, are making a point they want to see that's getrt was. lisa: you raise this question, and a really important one, how much the fed affects that. at one point is this structural? joe kerry hall was talking about looking at companies that don't a ploy as many -- looking at companies that do not employ as many people. this seems like a big picture issue, but it was accelerated by what we see during the pandemic -- saw during the pandemic and shift to online everything. jonathan: there is a calendar issue at play here as well. you will see guess after guest on this program and keep talking about the end of summer, september, october, to iron out these issues. can we just solve them with time on the calendar? tom: i'm looking at moving averages. the data has been so lumpy. jonathan: jobs report up next on bloomberg tv and radio. we are foreign half minutes away. your estimate is 700 20,000, the high-end is 1050, the low-end is 400. after a couple downsides, what is in store? the answer to that question comes up next. 4315 on the s&p. yi

can you provide us with an update on the fed trying to work with afsoc in the feds for their work and in trying to address climate change is specifically how these wrists came impact our broader economy through supply-chain disruptions were disruptions to massive injuries -- industries such as agriculture. >> the feds work on climate change and invictus is part of our pre-existing mandate for supervising financial situations and the overall facility. individual financial institutions or concerns. as supervisors ruled them to be capable of managing an understanding of the risk they run including the risk to their business activities with climate change so we are in the beginning stages of working on a program that will engage with this institutions to make sure that happens. on the financial system more broadly in overlapping effort that looks carefully at the y broader segment and ask how wl climate change affect financial markets and financial institutions that are not asset managers. those are really two efforts that we are working on and that's what we reported on. >> thank you ver

the fed can raise interest rates.have a competitive economy or not we have a competitive economy and people are making money by raising prices you should have competition. that should come in among other things with prices >> we forget how great the internet has been in terms of price discovery. until we screw that up because both sides have no tech in their sights thanks, steve. >>> let's add the market voice denny. a couple of things to talk about here glad that we have you on number one, let's address what we were just talking about that is whether the fed has the tools in the foresight to control inflation if it is already baked in you were around. when it gets bad, it is hard to handle if you let it get out of control. that's what we saw could it happen again? >> joe, the fed officials have been talking about what they believe is the fact they have tools for dealing with inflation. they just keep using this term tools. what are they talking about? the only tool i know is to tighten credit policy and raise interes