chairman powell is dealing with -- if noty is full employment, closer than janet yellen, and that puts you in a certain frame. that was what he was trying to express about policy -- nothing but policy really changed, we just reached a different stage of its implementation. th why the ford guidance that previously said, we are going to keep rates lower than neutral than whatever we mean by that, no, we are not. evolved differently. if it were to falter, i do not think they would stay on this prepackaged path. the next big iteration is to involve the balance sheet adjustment. >> interesting. thank you so much. chief security vice chairman, thank you. spearheaded a movement to an overlooked medical problem for women. it depends on who you ask in the pharmaceutical industry. ownership, herd controversial drug, dubbed the female viagra, is soon to come back on e market. fascinating one. give us the history of the female viagra drug. it was bought and went nowhere far, and now, she bought it back. >> the way back and history story, this was a depression drug. the company that was developing

>> janet yellen was talking about re-examining the inflation target. the economy has not been acting has -- as they expected. , it was 5.4%. ofe, we have no evidence inflation, so i think they realize the economy is not functioning the way that models would suggest. >> there was an interesting story looking at the new york city housing market which is not an easy place to build a lot of regulations. obviously, it is like a red flag. should be fed to be concerned with housing from that perspective? they certainly should. they were worried about the bubble and if the fed was not interested, they just said they will let it lapse. i think they should be on the lookout. i don't see much evidence of a bubble nationwide. that is unfortunate for people in that particular market. >> thank you very much. experts have debated whether they should be destroyed. he with more from boston is bloomberg health care recorder -- reporter. available arey these viruses we are talking about and what did they do to try to combat the risk out there? >> thank you for having me

only, janet yellen --= is that a change for the fed? + i think it is a change for these levels.e aggressive ramping and dollar exchange met across the board, not just in y en. you would also accept it -- expected to change inflation. we're going to see a pretty ugly growth story don't start to see more shop -- signs of concern. for now, given the current state of the u.s. economy and given where we are with u.s. employment and inflation, i think the fat is very domestic in its focus. yousef: john is going to stay with us. rolls-royce soaring to its highest level in three years. we are going to be talking about what is happening. detailing theent financial indications of what it is trying to do at the moment. the market likes what it is hearing in the stock is trading and having one of its best days in three years. we will talk about that next, this is bloomberg. yousef: 23 minutes into the session, let's talk about our stock of the hour. rolls-royce detailing the job .uts and changes it started to give more details to analysts talking about how these changes are going to affect

he talked about incredible demand janet yellen would have said let's wait and see unless they're seeing it very differently than how they're acting right now, he talked about demand through 2019 and '20 and then he talked about the supply side. he also said two things to me that tell you he's a lot more hawkish than this sounded like first of all, he tells you the economy is sounding great and he telgs you labor is scarce, workers are hard to find flatioich is fed'sipe for wage biggest issue. bottom line is if people think this fed is going to go softly, i don't think so this is a guy that thinks this economy deserves much less accommodation. one more thing, mel, sorry he's taking away the toys. he was he's taking away the oioer, we don't need to get into that this is a policy statement i'm going to tell you we're not changing a thing, but i'm changing a lot. >> isn't it exaordinary then the markets really had very little reaction. >> little reaction. wkish than people thought atore the surface? >> no. i k the expectations were in line i don't think he -- he was painting a pic of extrem

janet yellen back in 2014 was looking for 3%, by now. >> doesn't mean it won't happen.ust means it hasn't happened yet. what about the pressures on prices now >> a lot of those i think will be absorbed by profit margins. one thing that's interesting, we had record profit margins in the fourth quarter before the tax cuts, and with the tax cuts it was 11% back then, with the tax cuts at a record high of 12% i think some of these pressures can be absorbed in the profit market >> are those declining profit margins figured into your estimates for the s&p? >> we go back to 11% that absorbs it. >> what -- if dimon says we're in the sixth inning. he and buffett were on the bullish.not long ago, pretty >> yeah. >> especially jamie talking about the sixth inf is cycle. that make sense to you >> it does the cycle will end -- how could i gree with those guys >> they're not always right. >> not always right. but jamie buys his stock at an opportune time and doubledis money. >> i think the next bear market occurs when we see signs that we're about to fall into another recession. i do

he comes from a different andground to janet yellen he is one to have for communication with the marketsanna: there is a new sheriff in town. chris, thank you very much. he stays with us here on the program. , andg up, the ecb unwinds the first formal talks on ending qeutill they set the timetable today in riga? matt: we will pay close attention to that. we will bring you the ecb policy decision live here on bloomberg. no change is expected. 45 minutes after that is when we get to the important stuff. draghi hear from mario ant l th infmation you have been craving. this is bloomberg. ♪ it's 20 pastrning, eight here in riga, latvia, where i'm standing by for the ecb meeting. is when: 20 in the afternoon in singapore. that's go there for the business flash with juliette saly. has made itscast offer, saying the offr valu fox your payment assets at 60 got billion dollars. that tops the previous bid from disney and sets up a bidding war for rupert murdoch's empire. the bid represents a 19% premium over the disney offer. pay a one will billion euro fine imposed by german prosecutors for cheati

surprised when he sat at the d atum as opposed -- he stoo the podium as opposed to sitting like janet yellen? he said, i want to talk about the economy in plain english in ttg away from the academic speak of bernanke and yellen. i think this gives the fed flexibility. now, we'll rates have to wait for a conference meeting. -- we don't have to wait for a confer changes in how they will manage the fed fundsate. if you're not sitting on aadjus. ramy: the big news, up 25 basis point, as expected, and possibly fourmore -- not four more total. [lour global and policy editor kathleen hayes. let's get more at the market reaction to the second fed hike rate - fed rate hike this year. >> baby step or not, it moved the market. treasury yields go to 3%. slide with&p 500 the reth no move, but again a negative. gtvs go to the bloomberg chart. here is the message the fed seems to be giving us. the economy can han3% yield. has been an area of concern. this white mark is gdp. the blue is the fed starter rate. in yelw is where the 10 year yield is. some on wall street believe the yield could go much higher, e

. >> i would say there is a new sheriff in town, because ben bernanke after the crisis and janet yellen tended to be glass half-empty come in the sense if there was an excuse to pull back and be cautious, they tended to do so, and the paulo fed seems to be a glass half-full type person. german pal fed seems to be a glass half-full type person. alix: our next story is mario draghi, glass half-full, glass half-empty? he has a delicate balance today. he has to upgrade inflation forecast, but not growth, but temper expectations. chief of the ecb has dropped an enormous hand that they are talking about the exit from qe at the meeting today. will they come to a definitive decision and let us know? if you ask 100 people, 50 say yes, 50 say no. do know is qe as currently scheduled is slated to end abruptly in september, and they will want to go on a collide path. the consensus overwhelmingly is that will be done by the end of endyear, qe will end at the of the year and targeting a rate hike by the middle of next year, but the challenge from mario draghi is not to pre-commit too much. they want

wasn't much better than, of course, janet yellen, that was tough, it was like, going to her press conferenceswhen is it over? >> this guy is promising every meeting. >> what's worrying people which makes them think he wants to be more nimble. neil: why? >> typically the major shifts in policy they like to telegraph them. the idea is if i do a press conference every single meeting, giving the opportunity to shift gears quicker. neil: something can happen at every single meeting, usually the one without the press is the one deemed wouldn't be made. trade thing, how is that factoring into this? >> the beige book reports, they talked about it more. three months ago they never really talked about it, now, at the press conferences, the fomc statement, the beige book, we are seeing more and more where the fed is acknowledging that it's a threat, that it's got business owners anxious. that it's got prices misaligned with where they should be. won't impact the decision, i think more importantly you have the producer price index which is what producers take to make the products we buy coming in stronge

jay powell has to figure out, the fed chairman i think his idea was, i'm going to coast on the janet yellenectry for as long as i can until the facts change and the facts are slowly changing a little higher inflation both yesterday and today in the ppi and the cpi. you have growth rachtcheting up and the underlying questions which alan was getting at is, why is growth higher is it higher because w doing massive fiscal spending and cut taxes, or is it gog to be higher because we're going to change the dna of the economy? and that's really a substantial question here. are we going to have this capital investment boom that will lead to worker productivity that will lead to higher wages and create an upward shift in potential? that's what jay powell wants to know that's what all economists want to know. and that is the sort of thing that will change the outlook for fed rates. a temporary blip the fed is going to ride that out. >> anything in the language of the statement we should be looking for to get a signal for rates? >> it's a close call i think today is not that day where they'll make tha

of the powell era the first several months, i think, were those where he's just continuing what janet yellen had done. now he's made a few changes. initially there are some policy changes. you just point out he to do rather than the past two chairma chairmans who sat at their press conference hebegan with a folksy part of policy and he did also make some slight changes in policy in terms of changing the statement, getting it down to one page. some simpler language. i think one of the big takeaways here, i'd say there are several including the idea of a new press conference every meeting one of the big takea is his optimistic outlook on the economy. let's give a listen. >> i would say the economy's in if you lk at household surveys, confidence is high. look at businesses confidence is high if you survey workers about the job market, they'll say that it's a really good environment to find jobs you survey businesses, they'll say that workers are scarce. so i think overall we have a really solid economy on our hands here and so what we're doing is we are trying to conduct monetary policy in a wa

but janet yellen's was nothing but dovish and she raised rates three times last year.t at all for press conferences and meetings last year. she was setting a precedent for a successor. gradual small increases well telegraphed. central bankers care about precedent, mario draghi has to care about what his successor does. he wants to get the idea on the table the you raise rates slowly. what does a successor have in the toolkit when it comes time to fight recession, the answer is not a lot. they've use their balance sheet, they have tried their experiment with negative deposit rates and it was really a pass on the banking system. so they will hope the euro depreciates as much as possible that is the core engine for financial stimulus. so we need u.s. growth. the ability to influence either european growth or stimulate european inflation is inevitable. despite a 4.5 6 trillion balance sheet. they have thrown everything at it and they are struggling. they've had a bit of growth but it's been very expensive bought growth. vincent reinhart, thank you so much. coming up tomorr