david: james bullard, st. louis fed president live from jackson hole.talking with president bullard. this is bloomberg. ♪ xfinity mobile is a new wireless network designed to save you money. even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that has the most wifi hotspots where you need them and the best 4g lte everywhere else. saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuv

before the speech, we spoke to james bullard and we will hear his comments on the yield curve next. bloomberg. ♪ ♪ vonnie: this is "bloomberg markets." i'm a vonnie quinn. romaine: and i'm romaine bostick could st. louis fed president james bostic is outlining his view that the federal bank not be raising interest rates. our correspondent michael mckee that the fed should the signals -- should heat the signals from the bond market. inflation has been low, stable, and quite sluggish. it doesn't seem like you have to do too much, but if you had to, you can move pretty fast if you needed to. i just don't see the argument for being preemptive and the situation in a world where the yield curve hasn't been a factor in the last 20 years. michael: the fed in 1998 cannot take jay stocks. one.is a ratio of 10 to points to getasis 10 basis points on inflation. that is really, really almost nothing. michael: in the next two years, you don't see inflation? james: i don't see it and i don't think markets see it if you look at inflation expectations. they are taking all of this into account. accou

louis fed president james bullard gave a big green light for your money he sat down with our colleaguesg let's bring in one of our colleagues on this big interview. jeff, it was a green light in some ways to say okay things are pretty good in the united states. >> yeah, absolutely. in spite of the headline on the non-farm payrolls number on friday he told us that was a solid number, a solid report and it reflected strong growth in the u.s. economy we talked to him about the state of the trade negotiations globally and whether we're in trade wars he said the best case scenario we could hope for is that ultimately everybody accepts we need to move to a world where there are no trade barriers and he'd like to see tariffs come down globally. he also warned if it doesn't two that way we should be alert to the prospect of an inflationary shock to the global supply chain. let's have a listen to what he had to say they're very sensitive so it could create a cost shock for u.s. businesses. because they have to move a factory. that's going to be costly and take some time. >> that's about as down

the meantime, you have several members of the committee, several regional bank ,residents like james bullardalking about the fact that the curve flattening has been a worrying sign. will they continue to mention that? that is more for the statements in a few weeks. david: given the fact that some federal presidents have talked about it, they must have discussed this. reporter: absolutely. david: as a result, do we expect that they might signal -- not directly in the yield curve -- but how quickly they are going to hike? reporter: some people are concerned, some people aren't. when you are tightening monetary policy and raising interest rates, you do expect expectations for growth down the road to be lower tonight so you so youct -- to be lower, do expect the yield curve to be flattened. the goal for them is can we keep inflation and growth higher and not stymie that? the only realistic way we could do that would be to slow the pace even further, and that would naturally have a little bit of a steepening effect. shery: what is the bloomberg intelligence calculation on that , the outlook for t

louis fed reserve president james bullard joins us live from the fed symposium in jackson hole.'t know, easily amused. >>> interest rates, the president's take on fed chair jake powell, trade and the economy all coming up. next, tariffs may deal a blow to a small town company that makes tvs. kate rodgers has a preview hi, kate. >> reporter: hi, joe good morning element electronics which you see behind me gearing up to close its doors in october we wilte y al lloull the details coming up after the break on squawk you always pay your insurance on time. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪ when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment oppor

. >> we had james bullard on recently, he thought the phillips curve was broken. >> it was never as strongtimes painted there is general agreement that unemployment, changes in unemployment no longer have such a big impact on inflation. one thing jerome powell has argued, as the unemployment rate falls, and falls below 4%, the likelihood of workers being encouraged to come back into the labor market, even some of the structurally unemployed start to find jobs, that can improve some of the growth potential. but technology and inflation dynamics is going to be one of the main things that comes out of this jackson hole >> thank you for helping us set the scene today. janet henry from hsbc. >>> we have plenty more to come from jackson hole. >>> hawaii has been battered by hurricane lane the storm which has been downgraded to category 3, caused strong winds and rain and flooding and landslides. jay gray is in honolulu. >> good morning. yeah downgraded, but the conditions still expected to be severe. we've already seen massive flooding on some islands here. the waves causing some problems with s

starting tomorrow, jackson hole, we have a full slate of interviews with fed officials including james bullardster, robert kaplan, and raphael bostic. a whole slate you don't want to miss plus the pga tour commissioner joins us for an exclusive interview at 4:00 p.m.. ♪ francine: guilty as charged. lawyer admits to making payments as his former campaign manager is convicted. supporters the witchhunt continues. will mexico seek to deny the existence of the nafta handshake? the peso pairs its gains.

tomorrow, live from jackson hole, we will talk to james bullard, st.as well as the dallas fed president and the atlanta fed president. julie: it will be busy. do not forget to watch "commodities edge" at 1:00 p.m. eastern. david: this is bloomberg. ♪ >> from new york city, i'm jonathan ferro. this is the countdown to the open. coming up, the united states and china imposing tariffs on each other's goods just as trade talks resume in washington. federal reserve preparing to raise interest rates again. the internal debate over hikes intensifying. saudi aramco's ipo delayed. remaining just there. well out of reach. in the markets, 30 minutes away from the opening bell. a classic old-school morning. price action nowhere to be seen. futures, dead flat. bond market, dead fat. fx market, just a little bit of dollar strength. at 115.74. through the week, federal annual get-together on the heels of the release of minutes from their july meeting. little doubt that the chairman plans to lend the benchmark lending rate next month. >> we will be focusing

louis fed president james bullard appeared on cnbc earlier. >> there was only one -- the economy sloweddidn't quite turn into a recession, so i think you have to respect the signaling aspect of the yield curve. >> meantime, jamie dimon at jpmorgan said that investors should get ready for rates of 5% or higher, it's a higher probability than most people think. jim freda and chief strategist david zervo is here with us. good to see you both is the curve what you're thinking most about right now? or what's the lead in your mind? >> i'm thinking about the china story more than the curve, but the curve is front and center, but it's a story that i think jim summarized pretty well, it's a great indicator, and you have to watch it and more than likely we're going to see an inversion in the next 12 to 18 months and that's a good signal that 12 to 18 months from then, there's probably a recession on the horizon. >> as far as what we're seeing today, how does the needle move? >> i don't want to steal kyle's thunder because i know david's got him coming up in a little bit. but a lot of the stories

there are problems out in the economy, but listen how james bullard described it >> i think coming out here, a lot of times we were in crisis mode yeah, so i do think we're in good shape for today, but monetary policy is about trying to play it out two years ahead >> so i don't know, mike is that a sales signal when a federal reserve bank president says something that good >> there's kind of that knee jerk reflex that says, well, contrarian reflex tells you that could be maybe a sign we're getting towards the end of where it's easy at least although you can't do this with any precision necessarily. i think it's hard to really pull apart this case things look okay for the moment >> i think a big issue is the issues that are on the table right now, for example, the tariff issue, for example, emerging markets have not risen to a level where they create a systemic risk problem or concerns about melt downs that we seem to have fatesed eveced. you have separate fires but not a big configuration right now we're dealing with >> people were looking for headlines on trade chairman powell, i gues

james bullard, loretta mester and many more will come tomorrow >>> pasta lover, take your marks, including here. in just minutes from now, olive garden is about to put on sale its never-ending pasta passes. a new feature this year. we'll explain. the most unusual dangerous job we ever had on "power lunch," a snake milker, but not getting milk, he's extracting venom. we'll tell you how much he gets paid i can already tell you it's not enough we'll be right back. today, there are more sensors on our planet than people. we're putting ai into everything, and everything into the cloud. it's all so... smart. but how do you work with it? ask this farmer. he's using satellite data to help increase crop yields. that's smart for the food we eat. at this port, supply chains are becoming more transparent with blockchain. that's smart for millions of shipments. in this lab, researchers are working with watson to help them find new treatments. that's smart for medicine. at this bank, the world's most encrypted mainframe is helping prevent cybercrime. that's smart for everyone. and in africa, iot sensors

louis fed president james bullard speaking to cnbc europe about president trump's trade policy and pointingisy among trading partners countries that protest america's non-free trade policies should just drop all their own tariffs to zero because they won't because they're protectionists >> it's controversial, that's for sure but i think the discussion that, you know, should be focused on the end stage here reignite a global debate on trade. i think that has happened. and to think about where we want to get to and what we want to get to is very few in terms of tariffs to trade >> lower trade barriers would be a better outcome for the whole world, he said he also reacted to trump's comments about fed policy during the president's interview with joe a few weeks a egg. >> i don't think it'll have any impact on the kmecommittee. the committee has a mandate to keep inflation low we'll just continue to do that and, you know, lots of politicians comment on fed policy their regular hearings in capitol hill, senators and congressmen comment. the most recent white house administrations have not, but p

then tomorrow on "squawk box," we'll hear from james bullard, loretta mester, stay tuned you're watching. >>> time for the executive edge. we'll start with bitcoin news. the u.s. securities and exchange commission rejected applications for nine bitcoin-based etfs. the proposed funds were filed by pro shares, direct shares. the s.e.c. expressed concern about fraud and manipulation of the bitcoin markets. bitcoin is in the mid 6,000. 6,417 today. up a little. >>> also keep an eye on the australian dollar. it's been under pressure as additional pressure mounts on the australian prime minister to step down. this comes after three of malcolm turnbull's top cabinet members resigned and threw their support behind his main rival. we'll keep an eye on this developing story and bring you more as we get it. >>> when we return, summer vacation season is drawing to a close. if you are looking for trip ideas for labor day we have you covered. >>> right now as we head to break, a quick check of what's happening in the european markets. dax weaker both the cac and the ftse up a bit. at&t provides edge-t