let's squeeze it in before michael mckee and james bullard of the st. louis fed.hey are looking at a bond market much unusual. jonathan: that is in the face of hotter cpi than expected. we understand the objectives. we understand the mission. we need a better understanding of how another $27 billion of asset purchases each month helps them achieve that. in the words of congressman trey hollingsworth, are we just -- tom: we lead strong this morning on bloomberg radio and bloomberg television. i will michael mckee with james bullard, then later in conversation at the rocky mountains summit with charles evans of chicago and i believe chairman powell will stop by as well for an appearance midday. jonathan: buck wiki has got it right, hasn't he? maybe that's what we should be doing. chairman powell will come by in the next couple of hours. we will get testimony from him, then have questions from the senate banking committee. i imagine it will be more of the same from the federal reserve chairman, looking for a second term. that is very much on the agenda. tom: the nuan

james bullard whic -- james bullard, the st. louis fed president, that is coming up.quity market 4351 on the s&p, down 0.4%. in the bond market, yields lower to 1.2 557 -- 21.3257%. this is bloomberg -- to 1.3257%. this is bloomberg. ♪ ritika: the biden administration is extending a trump era halt to economic dialogue with china. treasury secretary janet yellen's team is in touch with chinese counterparts, but there are no plans to restart those higher liver talks. -- those higher level talks. it is evidence that biden is toughening his stance on china. the european governments are growing increasingly frustrated, citing inconsistent rules, academic costs, and an outdated strategy for stopping the coronavirus. the travel ban is likely to come in today when the president meets with germany's chancellor angela merkel. south korea seeks to move up its spot in the global space race. the country says this means launching satellites on homegrown rockets, and eventually a mission to the moon. >> the reason for moon exploration is because we expect it to be utilized in the fu

louis federal reserve bank president james bullard great to see you. . maria: james give us your take on the state of the economy. we know that we are looking at an improving situation, what do you expect for the rest of the year? >> you know maria i think we've made substantial progress, from december of last year, at that time the fomc was expecting 4% real growth, in 2021, we are now expecting, 7%, real growth in 2021, faster than china typically grows. we were expecting inflation to be 1.8% on preferred measure, we are now expecting, core pcnation to be 3% for all of 2021 and headline nation to be 3.4%, and labor market have improved far more rapidly than would have been projected. so i think we're in much better position, than we might have expected six months ago, u.s. economy was really roaring forward here coming out of this pandemic. and we are getting bottle bottle next inflation terms i think we have to be attentive to concerns. >> we've been attentive to some big moves win good even oil just had interview with one money manager pointed to oi

louis fed president james bullard speaking. hoed bullard's statements on tapering, but in contrast, he thinks the job goal has been met. evans took a more cautious tone. the chicago president said the fed could begin tapering by year end if unemployment slides closer to 4.5%. >> here we are now in a strong rebound. the economy is recovering very strongly and going very well -- growing very well. the numbers are so large, i have a hard time seeing them in my head. i am exciting this year real gdp growth is going to be on the order of 75%, an extraordinary number. towards 100% or more, that comes with growing pains. but growth has been good. looking for 7% this year, 3% next year, which also is a very good level of growth. the kind of numbers i find a little more transparent in terms of naturalness or the unemployment rate numbers, even those are subject to a lot of interpretation given labor force participation variations. that i am looking for the end employment rate at the end of 2021 to be about 4.5%. we are at 5.9% unemployme

and, you know, james bullard, the held of the st. louis federal reserve bank, was on fox business this morning, and he pretty much said that all of this data point to the fact that we need to fire up the tapering trucks and start cutting back on these bond purchases. here's what he said, and then i'll have you comment. >> we have a booming housing market. it's not at all clear that we want to be feeding into an incipient housing bubble. we have really a rapid a pace of purchases in an economy that's already growing 7% as fully recovered in gdp terms from the pre-pandemic level -- to the pre-pandemickic level. pandemic level. liz: okay, jim. do we need to -- now the tapering, does the fed need to announce tapering at the next fed if meeting which is in august? >> at the prior fed meeting, it should have announced. but notice he did clear his throat and say we may begin to at some time talk about beginning to talk about tapering. the problem is that we have the highest equity valuations except for one exception or two, we've got the lo

louis fed president james bullard worried about? i just spoke with him. arkansas congressman french hill on calls for congress to extend the nationwide ban on evictions. former detroit police chief james craig on the push to combat rising crime coast to coast, and wyoming senator cynthia loomis on why she's worried about the beijing olympics. but first, our top story this hour, all eyes on the cdr as the agency's expected -- cdc as the agency's expected to release the data they use to justify mask recommendations. correspondent mark meredith is live at the white house. we're waiting on the science on this, where is it, mark? >> reporter: that's what we're all waiting to the find out. at this moment president biden's getting to meet with a handful of governors to talk about wildfires, but most people are focused on the pandemic and the latest cdc guidelines which means millions will be required to wear masks again indoors. these guidelines are because so many people are still not vaccinated and because the variants are still spreading rapidly. to get things

you've heard kansas city fed president james bullard saying it's time to start tapering so i think the real question is, will the feds react in time to drop this back in or will inflationary expectations push an out-of-control? then you have a fed that has to slam on the brakes and it can do damage to the economy. charles: the answer to that dan, if it's the feds will no, the answer is no. they will be behind the curve again they will get on the brakes, curve, swerve whenever they can, and that is the big giant ms. as more money gushes into the economy, we have another human welfare program that kicks in. it's a dangerous game. >> they are and jerome powell did say we've never experienced trying to revive 20 trillion-dollar economy to the degree of monetary fiscal support so they have to the other way. it's a must by definition, the feds will be behind the curve before they recognize exactly what they should do with interest rates and everybody out there was the most sophisticated investors on wall street, people sitting around the kitchen table in the evening trying to figure out whet

louis fed president james bullard, saying he looks for a hike in 2022.e thinks the job market is recovering quite well. the market not really taking that in stride at all. caterpillar following the most in nine months. you have cyclicals and tech really falling today. dani: caterpillar, it really is that kind of stock that you look to to give you an idea of whatever thing is doing. the bellwether, that is certainly what caterpillar is typically seen as. alix: 100%. if it is going to be price pressures and supply constraints , is that different than we getting demand? how do companies manage that in an idiosyncratic way? do you still need growth to come back, and firm growth to help the companies? dani: i feel like you perfectly set me up for what we are going to discuss next because those supply bottlenecks featured heavily in the gdp figures we got, especially for germany. the euro area economy did rebound sharply in the second order. you have businesses reopening following the lifting of lockdowns. let's get the details with our senior editor for econo

that is putting them both at odds with james bullard.ys the fed has met its goal to start tightening. >> i think we are in a situation where we can taper, and i think setting those parameters the right way -- we do not want to jar markets or anything, but i think it is time to end these emergency measures. rishaad: the german chancellor has pledged swift up to people affected by devastating floods in western for money. angela merkel called the situation a catastrophe. more than 60 people are dead and dozens missing due to torrential rain. mobile and internet services also impacted. there are also floods in the netherlands and belgium. netherland's per minister designate stepped down after the president rejected his latest cabinet proposal. the two would not be able to agree on a way forward even after more time to consult. the political crisis is adding to the company's already dire situation. yvonne: coming up, toyota and panasonic taking on established names in the battery market for tv's. the president is up next. ♪ david: breaking ne

louis fed president james bullard speaking to bloomberg's michael mckee.hicago fed, charles evans, and while inflation has picked up more than expected, next year will be more number -- normal. >> so here we are now in a strong rebound, the economy is recovering very strongly and growing very well. in fact, the numbers are so large, i have a hard time keeping them in my head. i'm expecting real gdp growth is going to be extraordinary number. and when you take an economy that's 75% and take it to 100% or more, that comes with growing pains. but growth has been good, 7% this year, looking for 3% next year, which is a very good level of growth. the kind of numbers i find more transparent in terms of naturalness or the unemployment rate numbers, even those are subject to a lot of interpretation given labor force . i'm looking for unemployment rate at the end of 2021 to be about 4.5%. we're five point 9% unemployment right now and come down dramatically -- 5.9% unemployment right now and come down dramatically, which is good. i'm still optimistic that's the cas

that was james bullard, the federal reserve bank of st. louis president.r audience worldwide, alongside lisette rewards, and jonathan ferro. tom keene back with us on monday. lisa -- lisa abramowicz, i'm jonathan ferro. tom keene back with us on monday. lisa away for a week. playing musical chairs. yields come up to basis points. we've had a week full of fed speak. let's pick up on the line that jumped out for you, lisa. i imagine it was the "we don't want to jar markets or anything. " is that the right line i think upon? lisa: you got it. the question is, how to they do this? and what counts as jarring markets? is it going to be something that is disruptive enough to threaten the economy in some kind of fundamental way? what is the threshold for that, and how much are they considering that as they take a look at housing prices at record highs, inflation reads that even jay powell has said have come in hot? that is what stood out to me. you nailed it. jonathan: he talked about the context of the original decision , the crisis they faced comedy possible dep

it wasn't long ago that james bullard, one of the big names at the federal reserve, said vaccinations said they would have toby 75% before they started to taper. they are bringing mask mandates and fed takes cue from the white house. very strong relationship between jay powell and treasury secretary janet yellen. on top of that are jobs. three areas in the jobs market that are nowhere close where jay powell wants them to be, participation, employment to population and then the unemployment numbers for black and hispanic workers are miles away from where they were in september 2019 when they hit record lows. there is the jolt to the market. the fed trying its best to ease into this, hoping that the wall street crybabies won't go and throw away all their stocks in protest. there is a lot going on today as we await for the fed, the actual q&a session. i want to bring in two of the best out there. really can't do any better. gary kaltbaum, phil blancato. you know them. you know the firms they represent. gary k., you're not a big fan of the fed. so we'll not talk about as much as the impor

louis fed president james bullard said this week he has, quote, a little bit concerned we are feeding incipient housing bubble dallas fed president said that the fed should begin tapering to begin offsetting, quote, some of these excesses and imbalances, end quote. the boston fed president eric rosengren raised alarms that the fed's mortgage backed security purchases may be contributing to the boom in real estate prices citing the potential financial stability implications i guess you know i have been clear for a long time, i have been very skeptical about the ongoing mortgage backed purchases. are you concerned about the unintended consequences associated with $40 billion worth of mortgage backed security purchases that continue month after month? >> housing prices are going up around 15% this a very high rate of increase a number of factors are contributing monetary policy certainly one of those factors. other fact e, people have long balance sheets, so they are able to make down payments and supply factors are constraining the supply temporariarily. the best thing is that the diffe

louis fed president james bullard said this week that he is, quote, a little bit concerned that we areeeding into an incipient housing bubble. dallas fed president kaplan said that the fed should begin tapering to begin offsetting, quote, some of these excesses and imbalances, the boston federal president raised alarms that the if he had's mortgage backed security purchases may be contributing to the current boom in real estate prices citing the potential financial stability implications. i guess you know i've been clear for a long time i've been very skeptical about the ongoing mortgage backed purchases. are you at all concerned about the unintended consequences that are associated with $40 billion of mortgage backed security purchases that continue month after month? >> so housing prices are going up as you mentioned around 15%. this is a very high rate of increase. a number of factors are contributing, monetary policy is certainly one of those factors. there are also other factors, people have very strong balance sheets so they're able to make down payments, there are also supply fa

louis federal reserve president james bullard on tapering.taper discussion, yeah, i do think we need to get moving here. we have a booming housing market. it's not at all clear that we want to be feeding into an incipient housing bubble. we have really a rapid pace of purchases in an economy that's already growing 7% and is fully recovered in gdp terms from the pre-pandemic level, to the pre-pandemic level. so i think sooner is better on tapering. i think markets are ready for it. dagen: john, your reaction to that? >> you know, we agree completely. we believe we're going to start to see at least the beginning of the tapering. it will take a while. but at least the beginning of the tapering at year-end. we're hoping we see it and we think we're going to get some indication. you'll see the employment data today. you'll see gdp at the end of july. you'll see you've got the jackson hole conference. we think the fed is going to get indications and we think they're going to continue moving in this direction and that would be a great sign. we share