overtime and you mentioned warren buffett and i do want to say you know prior to this virtual jackson hole the fed had announced they were going to announce something that was profoundly consequential but we knew they were going to do that we knew they were going to tolerate more inflation than the 2 percent we knew they were going to keep sir 0 percent not only because kaiser report said that but because warren buffet fled right he he dumped his bank shares he gets the inside information he gets to speak to these fed executives because you know that's how they do it. you know we have friends who are in many of these senior primary dealers and what they do what they say is that they get calls from the fed who legitimately can say we're just researching like where before we make any policy decisions we're going to speak to senior bankers and find out what's going on what they're really doing is tipping them off and saying what would you think if we took rates negative what would you do of course they're telling the person we're going to take rates negative so what should you do so warren buffett ob

numbers he sees inflation will hit 5 to 10 percent over the next 4 to 5 years and he said that's based on what he heard at virtual jackson hole that the fed is encouraging the government to print more money more stimulus so fiscal stimulus and that's like m m t he said and this is going to cause inflation on the other side he said they're all there asset price bubbles that the fed is still king is going to cause collapse which will cause a 3 to 5 percent deflation on the other side so both tails he calls it right well i mean this is because it plays into been talking about this for a while for a couple of things 1st of all definitions for the words inflation and deflation this is that the fact that he can say both are happening at the same time or could happen the same time you have to ask yourself what's the what's the use of even using words like inflation or deflation because a stock doesn't describe the what's going on with the economy we've outgrown those words the economy has moved beyond those definitions we're in a different type of economy and market completely you know i've called it things like buy flay ssion we've talked about

numbers he sees inflation will hit 5 to 10 percent over the next 4 to 5 years and he said that's based on what he heard at virtual jackson hole that the fed is encouraging the government to print more money more stimulus so fiscal stigma.

numbers he sees inflation will hit 5 to 10 percent over the next 4 to 5 years and he said that's feast on what he heard at virtual jackson hole that the fed is encouraging the government to print more money more stimulus so fiscal stimulus and that's like m m t he said and this is going to cause inflation on the other side he said they're all there asset price bubbles that the fed is stoking is going to cause collapse which will cause a 3 to 5 percent deflation on the other side so both tails he calls it right well i mean this is you're right because it plays into been talking about this for a while for a couple of things 1st of all.

do you think they continue to compress given what you heard from jackson hole? >> the fed be a very active player on high quality assets. there is going to be distortion -- dispersion between low-quality and high-quality assets. it is hard to get long-duration. the trend is positive in terms of spreads, notwithstanding any kind of dislocation from a global event. -- we havehave been reinvested a lot in march and april. we need to have a focus on that area in our business. may be big opportunities pass you by? >> you have to be patient. this pandemic came out of the blue. behavior, on consumer on consumer activity, especially in the u.s. where consumers are 70% of the market, there continue to be known unknowns. i think we are fortunate we have a broad platform between private equity credit. we have our fingers in a lot of opportunities. , onenk at these levels needs to be measured and thoughtful. when we think about asia broadly speaking and japan in particular , we think there are opportunities that are consistent with how we invest. i would say the same thing about oppor

i mean, it is also interesting that powell has made the case, at least at jackson hole, that the fedd place equal weight on the unemployment part of its mandate as the inflation part. that seemed to come true yesterday in his statement as well. in addition to watching inflation and different measures of inflation, they will be really pulling apart the data on the labor market, i suspect, in deciding to put additional stimulus into the economy. francine: thank you so much for joining us today. deanne julius, distinguished fellow at chatham house. job losses are on course to be the deepest and half a decade. we have all the details next. this is bloomberg. ♪ ♪ francine: this is "bloomberg surveillance." i'm francine lacqua in london. job cuts are back at the world's biggest lenders. they have begun to slash their workforce. here with the details as dani burger. dani: about 60,000 job cuts so far have been announced for the year. youell on pace, as say, to beat last year's levels. that means we will have the steepest reductions in lender workforce since 2015. this is just the job cuts t

the fed meeting in mid-september? michael: no, i think the fed has taken itself out of the conversation. i think powell was very clear at jackson hole that the fed will be following the current policy for the foreseeable future. i think it is going to be more about the resilience of the equity market itself, whether support at the 50 day holds. if it does, i think this is a consolidation that goes on and bricks to the upside at some point in q4, or if the 50 day gives way, you potentially have more internal selling pressure in the most unpopular parts of the u.s. equity market. jonathan: we can get a broader rebound. using we can establish that in the coming weeks and months? ken: i do. a five-day selloff now is not really a very long one, but what is noticeable is some things have not gone down. most of the cyclical sectors have sidestepped this. transportation, most of the industrials. a market like japan, which is very cyclical, has stood absolutely no interest in this correction. i think that not going down is the first sign that something is moving towards leadership, so i do think we have some hint of that. as we say, for that

the fed went far enough. . the market anticipated the fed would formalize the changes they made at jackson hole, which they did. i do not think the economic projections contained surprises. where the rates market was disappointed was that the fed did not do anything further. they did not adjust their balance sheet, they did not commit to future balance sheet changes and i think that was a disappointment. it made those forward guidance changes appear toothless. the market is saying ok, you made an historic change, congratulations, but we are skeptical. what are you going to do further? there was no guidance on the balance sheet. i think that is why we saw the curve steepen up. that is why we are getting risk off. alix: 66 basis points on the 10 year, averaging out your weighted average maturity going to do? there would think be much the fed would do on the balance sheet outside adjusting language. without taking more material action, i think the market does changeseve the fed's are sufficiently powerful. they are looking for the fed to do more. all the fed can do is pave the way for fiscal stimulus. they are hop

the fact you have -- supportibly and's weolicy from the ecb and need further details from the fed and jackson hole. you look at the ecb tomorrow, we expect very little in terms of new news. but we do get will be the macro economic forecast and we expect to see a little bit of improvement there given the fact -- their thoughts on what will happen. marilyn? i think we have to make sure your line is stable but also we are starting to see boris johnson speaking at 10 downing street. let's take a listen to with the prime minister has to say. ok. >> data from the u.k. and from england. we are starting off of the overall rates in terms of concerned -- confirmed cases going back to april. they were high numbers. the numbers came right down. as you can see on this graph, the numbers are going up really much more rapidly over the last few days. next slide please. it's important to think about this in terms of the ages where this is happening. this is good news. the bottom of the graph. that shows in older people and the younger children the rates remain really quite flat. but in some age groups the rates ar

francine: do you believe, if you look at what the fed has done and the announcement jackson hole and how they look at inflation, are we going to see something similar? do we have to see something similar from the ecb? themos: i think that gradually more and more central banks will fed's example.he all pastf you look at cycles, the fed tends to lead the way in terms of innovation. this has been an innovation they have been preparing us for a long time, so it comes as no surprise. a lot of these reviews are will reache probably a similar conclusion to the degree that they can force any kind of change that doesn't clash with the constitutional mandate, because obviously the constitutional mandate issues for the ecb as well. central banks in the emerging world, which are now steeper, and expectations for higher rates in the years ahead, will probably gradually adapt to a framework like the fed, which is much lower for much longer, i would characterize. be the bankn could of japan, that in their own framework concluded that there is not much more they can do about it a few years ago. but i

the fed at jackson hole is a step in that direction. rs are extremely tempted -- and should be tempted -- to have a marginally higher inflation rate as the best way of reducing debt to gdp ratios, and i think that is a much more palatable choice than trying to time fiscal policy too soon and running a risk of what happens in so many places, particularly in europe after the 2008 target. but it is tricky because in my -- it might well be that the ,upply kin side of economies there is a risk that inflation could pick up more than desired, and that is something we wouldn't want. all these issues will continue to play out certainly in the months ahead and possibly the years ahead, and it means we are in for a lot more volatile macro picture for the next few years than we have been for quite some time. francine: jim o'neill from chatham house stays with us. exchange, a heated donald trump and california state officials clashing over climate controls with the wildfires. that is coming up next. this is bloomberg. ♪ >> the dystopian future we hav

i want you to set up, if you would, the path from the virtual jackson hole, the speech of chairman powell threw two the different fed speak we have heard before we get to this moment with richard clarida. jonathan: it feels like an exam. i've got to explain what the fed has done. [laughter] tom: i'm sure you are going to nail it. jonathan: the reaction function of the fed has shifted, and i would say it goes back about 12 months. if i wanted to make it really simple for our audience beyond wall street, the message from the fed is as follows. when things used to get better and inflation would pick up, we would do something. the message from the fed now, we are going to wait. we learned some things over the last 10 years as well. employment can come lower. we can accept a higher inflation rate, perhaps north of 2%. i think that is the basic message coming from the fed right now. we will stand back and let it continue to improve. tom: nicely explained. you nailed that, jon ferro. that is a good introduction to the vice-chairman of the fed. somebody has to go out and construct a 10, 20 page paper or speech that actually

alix: do you think that the fed should be including racial employment differentials in its mandate as is strongly intimated at jackson hole? >> that's -- there is a question of whether the feds got a brain the s to put things on robot to make the decisions. when it d can easily needs to change the interest rate. but this is also a fiscal thing. and the fiscal thing is very important. and that one is in the hands of he federal government. it's bothersome. and i am sure that if there is a presidency, that situation will change. guy: can we talk more broadly out how we get wages to go higher. the fed clearly sees this and it's unemployment mandate being critically important. and jay powell placed greater focus on it. i'm just wondering if we need to see changes elsewhere in society that are going to be needed to get wages to go higher. there appears to be a strong relationship with the breakdown of organized labor and wage pressure. clearly globalization is part of this. the output gap now a global phenomenon. do you think deglobalization will help raise wages? do you think that needs to be augmented maybe with the return of

what the fed has done effectively last week in jackson hole is wave goodbye to something that has beenur favorite all these years, the phillips curve. the relationship between unemployment and inflation. as unemployment falls, inflation will rise. most recently, in 2016 to 2019. that inflation never happened but rates went down. that was bad for the economy. the fed has learned a lot of lessons and they are trying to rectify that. they don't do good to anyone. we haved curve control, no news about that unless we hear something on september 15 and 16th. i think right now, the key message is lower rates for a lifetime. inflation if required. inflation will be surprisingly good news if that happens for the economy. this is the new regime. annmarie: i think a lot people may agree with you that inflation would be welcomed potentially. but, how do they get there? they have been trying since 2012. deepak: you're right. and they got it wrong because of the phillips curve. all central banks of the world have been fascinated by william phillips. that has not worked, not only in the last eight ye

of what wasetails announced today fit into what powell said in jackson hole several weeks ago in terms of this broader framework for the fed going forward? >> yeah, so i think the way to understand the forward guidance the fed introduced today about interest rates and how that kind of fits into this new average inflation target framework is know, meant as coming you something to distinguish between what they are going to do this time versus what they did last time. if you go back to 2015, the fed lifted off from the zero bound after seven years and zero rates. when they were about of their estimates of full employment, but well before they hit their to.ation goal this time they are basically saying that only a record to wait until we are at full employment estimates, but we will wait until inflation is at 2%. we expected to overshoot. gives you aot part clue about what they are looking for in terms of maximum employment because of they think the phillips curve is really flat, that what that means is they are actually going to have to drive unemployment well below their estimates of full employment in order to generate that

the day following mr. powell's statements at jackson hole i think that's a watershed event. we expect the fed to do nothing today. i don't think we'll get a lot of quantifiable color, but i think the message will be they stand at the ready i think that's going to help investors continue to feel very good with the decisions that the fed is making. >> julia, i'll turn to you on that note. you know, as someone who i think is largely supportive of the fed's policies here, do they risk blowback, because people say, wait a minute, there are all these traders making all this money in ipos but this does not translate to main street weav we've heard this over and over and over again how do you expect powell to answer questions like that >> the answers have been from powell and almost a unanimous chorus from all fed speakers has been, we need more fiscal. we can lend, not spend our tools are limited. we're doing everything we can. we are committed to keep doing whatever we can for as long as necessary, but there is only so much the fed can do and the fed has been unusually open and aggressive calling f

the fed's policy statement, not to mention the postmeeting press conference? kathleen: it's interesting. three weeks ago, jay powell was about ready to unveil the new policy framework of the virtual jackson holehat was held. surprise. not a people did expect the fed chair to acknowledge many things. inflation poet short of its target for so long. see that reflected broadly in the policy statement. an emphasis on inflation as a guide as when the fed could start to normalize policy, start raising rates again sometime in the distant future. one thing for sure that people are watching is the economic outlook, the forecast. this is when we get the summary of economic projections. back in june, the fed was still fairly negative. infact, if i may bring stephen stanley from amherst pierpont in the new york area, he said the fed has been relentlessly gloomy on the economy. he says for example, unemployment, the fed thought unemployment at the end of the year would be 9.3%. the white line on the bottom, it blew past that already in august. 8.4%. gdp, the fed is looking for mostly 7% decline. that is going to be proved to be too high. particularly if the economy grows. 25% in the third quarter. inflatio

november 1st which we heard about on september 2nd, that was a big positive then hearing the fed at jackson hole on august 27th saying they'll let inflation overshoot, those are positives. it just drove the market to an overvalue level. and then yesterday you actually had see yaa come out and they we expected to beat and raise they cut the forecast by 17% for the upcoming october quarter and they have, remember, july quarter end. so they had an extra month in there. what they said was business, you know, really slowed down in the month of july. the it was across all geographies. the it was across all customers including the big internet service providers. and that made people say, okay, well, you know, maybe we got a little too optimistic. honestly, could have been anything that triggered that but that was to some extent the trigger that helped along with the dollar having bottomed, et cetera >> should just mention the dow went positive there as you were talking, dan to that point, in fact, how big a difference does it make in your mind as to where we go next that today we were down as much as 5

continueink that they to compress given what you heard from jackson hole last week? going toink the fedntinue to be a very active player on high-quality assets and there's going to be dispersions in the market between low-quality assets and high-quality assets. what is unique about this transaction is duration. it's hard to get long-duration and we were able to do that in this transaction. in terms is positive of spreads, notwithstanding any kind of dislocation from a global event. us, we reinvested a lot in march and april when they widened out. we continue to have a focus in our business. manus: what is the biggest risk, that a vaccine comes to early and the big opportunities pass you by? jim: you have to be patient. this pandemic came out of the blue, and the impact on consumer behavior, consumer activity, especially in the u.s., where the consumer's 70 plus percent of the market. unknowns in the next 12 to 24 months. i think we are fortunate that we have a broad platform between private equity, credit, and assets. we have our fingers in a lot of opportunities. at these kind of level

the second thing is where the fed is, and some of the ambiguity in their guidance. i think clearly, at jackson hole, chairman powell fired a big bazooka. you all have been talking about that thoroughly over the last 30th, how this is the end of ideology.oelker has not yet really specified how we are going to measure that, over what time period, using what metrics. i think the market is frustrated about that, because how do you really try to guess at what inflation or inflation expectations are going to do, and therefore what must trigger a hike? tom: good morning. i am just fired up about this. you've got the best bio on wall street. you start off with your protests at brown university million years ago, and now you're working for james gorman on wall street. that emotion is out there right now. we certainly saw that emotion last night. officers of all of our corporations adapt and adjust to what they witnessed last night? do they make plans? do they setback -- today sit back? or do they say, let's go? lisa s: i don't know that there was any optimism to be seen. without getting into the politics of

the fed, then, this will be the last meeting before the election. what are we expecting to see from the fed? anything substantial, any detail to what they talk about in jackson hole, not ahead of an election, especially one as artisan is a current election is partisan as -- as the current election is likely to be. they want to pump a lot of liquidity into the marketplace. right now the market is not concerned with inflationary -- near-term. the challenge they have is that a, they are starting from a point where the ecb is considerably below their target. it raises the question about why they made the announcement in place.st secondly, when you say you will allow inflation to be above target for length of time, that is very ambiguous. certainty.s want if they said 5%, that would be exceptional. and for how long? . i think the marketplace, especially fixed income, will have some volatility coming to it next year if inflation starts to develop. what safe haven plays the uc working out well? iffy recently, running up against ceilings, so to speak. do you think people are going to start pushing gold over 2000? is bitcoin going to come back? is the yen going to get str

>> first of all, we have the fed meeting next week. the fed of jackson holeized how they are changing their intolerance of inflation there is a big question mark whether they'll act to dully generate higher inflation. should you get some upside in surprise, more guidance, qe, that would be more a surpirise for value than growth. i would highlight the fiscal growth sector that would be more damaging to some of the leaders, so far we mentioned a lot of consumer discretionary themes there the last thing is really, of course, the election coming up that is something where we could hear more noise in a theme between tensions between the u.s. and china they've been one of the top leaders of this. taking profit there and migrating in another region like europe which led over the past week >> if you would do something this morning, what would it be >> so two things all about how investors came into this. it is a good gut check given the unevenness, our portfolios are perhaps a little too tilted we are thinking about trying to bring that into a better balance with eur

one is that the increased dovishness from the fed did not come from the fomc, but from the jackson holeeeting. this statement might sound dovish compared to the last fomc meeting and that is one thing that may be a dovish factor. on the other hand, the last forecast was very the semitic. that may -- on the other hand, the last forecast was very pessimistic. i think the marginal knowledge will maybe provide enough momentum. people are very nervous, a little bit unsure about why we suddenly had that correction in tech. whether it is just removed the froth. it hasn't really, we have seen a more money coming in. is it like one of those rallies in 1999 where we will eventually go higher still, or was that the first sign that we are in a topping formation? it is very uncertain at the moment. anna: talking off tech, what kind of responses have you been getting to the question of the day, asking provocatively perhaps whether the next 10% nasdaq move will be higher or lower? what kind of positioning are you gleaning? mark: i think we are gleaning that people are still pretty bullish. they are th

the qe side? jackson hole pointed in that direction and he has done so subsequent to that. we have seen a flattening of the bgp curve. curve.bly -- btp presumably it would be a benefit to the feddications has it made it will do more? my opinion, that will probably happen towards the end of the year if we were to see three consecutive numbers in terms of pmi's service. three consecutive readings of below 50, that raises the question. what can the ecb do? ultimately, i think it will only raise the challenge for the complete integration and coordination between fiscal and monetary policy, which when it goes down to the ecb policy review, we don't talk much about theren the day today, but is an important element that the broader monetary review that the ecb is taking now, more than ever admitting there is a need ar a serious discussion about holistic approach to monetary greater with fiscal and regulatory support, that is the path forward. the market will not react to 10 billion, 20 billion, 30 billion more in qe. it is very limited. are we prepared to engage into a monetary and fiscal and regulatory policy framework that admits that monetary policy is unable today to support aggr

the fed doing what they are doing. the next three to five years will be very, very challenging and what the fed has done, in my opinion, if you listen to their, the jackson hole on framework it was quite amazing it sounded like an apology because inflation has been 1.6 instead of 2 the last ten years. their mandate is price stability. where i think 1.6 is like to hit a home run they actually sound like they've been too tight the last ten years and look what they are risking in terms of financial stability to hit that 2% mark. my own sort of central cases for the first time in a long, longtime, i'm actually worried about inflation. unless everything i learned about it is incorrect, de facto, mmt which is what we're doing right now because we actually have a chairman of the federal reserve, $3.5 trillion deficit out lobbying congress to do more spending and guaranteeing those of us on wall street that he'll underwrite it. i think it's dangerous i think we could easily see 5% to 10% inflation in the next four or five years ironically, i also think he's raised the risk of deflation because i cannot find a deflation that happened because you were near the so-calle

this and we're halfway to that number when you look at what the fed is trying to do, they're trying to engineer inflation since jackson holerates in the tip market, which the market looks at as a leading indicator for gdp, we're down 20 basis point. a lot of the signals from the real economy are suggesting the withdrawal of stimulus is hurting main street much more deeply than the markets preer appreciate right now if we don't get a reversal of the fiscal cliff, so to speak, by the election or into next year, the economic pain is going to multiply and the markets are going to realize that and see it in the economic data as we get deeper into the year >> and do you think, anthony, that that will make its way to some of the bigger tech names? i wonder we've been talking about the dichotomy in the country for some time in terms of the so-called real economy despite real support in the fed and for a while from congress. we've been talking about that and, of course, these huge mega-cap companies benefitting from the current environment under your scenario, does it finally creep up to them as well in terms of demand >> what's fa

the uniform guide of what they had to wear? tom: we notice this among fed officials. chairman powell spoke at jackson hole.athan: was there jackson hole last week? tom: michael mckee did a series of interview. tieless is a look. so i coulded my tie follow with mr. kaplan of dallas. it really works for radio. i have to tie it back up because we're going to a spacex launch in seven minutes. jonathan: what it you tie on tv and do something for radio. explain to them how you do up a bowtie perfectly. this will be brilliant on radio. tom: i have done this on video. the way you do a bowtie is you tight just like you are tying in ice skate. that is all there is to it. these bowties are fancy french ones and they are easier to tie, to be honest. jonathan: what if you have never tied in ice skate? tom: that is a problem. it is a british thing. in the real world, lots of people know that, and it is just like tying in ice skate. jonathan: the real world is anyone who plays ice hockey, and everywhere else is not the real world? i do not know why ask you to do this. tom: let me tell you about the space-x launch. jonath

fed members think will play out that year. also in terms of the targeting regime, this is a huge change flushed out of jackson hole allowing inflation to be above 2% a little below getting to this average close to 2%. if the inflation goes up in coming years, we'll stop debating whether the phillips curve is broken. seeing jobs and unemployment guide. you say when is inflation going to come into the mix that would move the inflation at the lower level. that unemployment rate will move lower. policymakers will not be as spooked by the jobless numbers improving at this stage. >> that's right, we'll see if the fed is expecting any overshoot. one other thing i would throw into the mix that investors will figure out whether per jojerome powell wil interested in a lending program. officials across the board have been criticized in the efforts to support main street to the extent they've supported wall street this has been under fire with respect to the strict criteria seeing more credit risk themself in order to make the rules a little more lenient. >> what also jumps out to me, we've got this back drop and the stimulus program that congr

the fed and the treasury's initial response to the virus? and certainly now this new inflation strategy that we got out of jackson hole? are dealing with is a very unavailable issue. let me put it that way they are deal dealing with the unknown. we can guess and prophesy and hopefully go back on historic and see how these things develop. histo history, and we will learn certain things but it will give us real insight into forces that engender stock prices. i think we have a great deal of knowledge on new and extraordinary increasing in size of the retirement area we are, if anything, under estimating the size of the budget deficits that are down the road i would say all and all my major concern is inflation obviously it has not emerged and it is new insight on the virus. we do know something about the virus in a sense, but several weeks ago the house of representatives basically asked the congressional budget office what their outlook was for what was the impact of the virus. and they did something very deliver. what they did is they took their old january and february forecast, and they matched it against the forecast

jackson hole symposium. we changed from the other side of the equation. when you listen to the fed it's changed and announced new policy frameworks, if you look at credit side of balance sheet, they haven't been able to expand the program and at the same time we are struggling here on the fiscal side as well. i think if you look at the march channel from march 23rd, we broke the upward channel somewhere in end of august. maria: yeah, we have been talking about very few alternatives to equities given the level of interest rates. you're talking about the federal reserve. that's really been what this recovery in the market has been about. there aren't any alternatives, are you saying that has changed? >> well, i just think that tone from the fed has -- has changed, right? the velocity, i think, of the impact of the fed on markets has tempered here, right. at the same time if you listen to chairman powell, you listen to what he's saying even with secretary mnuchin, he's saying, look, the fed can lend, they can't spend and i think what the economy needs right now is much more on the spe

the fed is trying to do here and what the outcome would be for those options. thank you. >> it's a very important question. i actually spoke about that in my jackson hole remarks a couple weeks ago. it's not intuitive to people. it is intuitive that high inflation is a bad thing. it's less intuitive that inflation can be too low. and the way i would explain it is that inflation that's too low will mean that interest rates are lower. there's an expectation of future inflation that's built into every interest rate, right, and the extent inflation gets lower and lower, interest rates get lower and lower and the fed will have less room to cut rates to support the economy. this isn't some idle academic theory. this is what's happening all over the world. if you look at many many large jurisdictions around the world, you are seeing that phenomenon. so we want inflation to be -- we want it to be 2% and we want it to average 2%. if inflation averages 2%, the public will expect that and that will be what's built into interest rates. that's all we want. we're not looking to have high inflation. we just want inflation to average 2%. that means that, you know, in

it was a bit surprising that the powell fed made a shift in its forward guidance that was clear, that was based on what was announced by jay powell at a virtual jackson holeed conference about three weeks ago. it is all stemming from moving from inflation target, that 2%, not really moving away from it, but allowing it to be an average of 2%. in terms of forward guidance and what they said today, no rate hikes until inflation hits 2%. that is a very clear and explicit thing they had not said in the past. also, until the economy reaches maximum unemployment, and the fed said it is going to allow inflation to overshoot its 2% target. everyone figured this is what the fed was meaning in its framework, what was going to do, but this is a very clear statement. not everyone thinks it is complete. wasact, charlie foster, who head of the philly fed for many years, he said the fed has the elephant in the room it will have to address. here is what he said. >> the real question is why did that happen? why did they not get it to 2%? and what now makes them think that they can get it to above 2%? in theiroing to change policies and their actions that will get it to 2%