jordan rochester there, who again, is sticking around.he fed should recognize that inflation is not transitory. manus was just discussing this. we're going to dig into that next. this is bloomberg. ♪ >> i think it's time for a change in policy at the fed. and i was of the view that this may be easier with someone who hasn't repeated, over and over again, that inflation is transitory. don't worry about it. it's going away. inflation is not transitory. and it's really important for the fed to realize this. dani: bloomberg opinion columnists and allianz chief economic advisor mohamed el-erian acknowledging inflation is not transitory. still sticking around with us is jordan rochester, g10 effects strategist at nomura. just before the break, you are saying how the most recent variant doesn't change the inflation picture, perhaps agreeing with el-erian there, as well. but i wonder if the inflation picture could be exacerbated by the most recent change, if demand sticks around, and we see more restrictions in places like asia, where you have he

tom: maybe a shout out to jordan rochester of nomura as well, who games this correctly.der if we get a reset where all of a sudden, on dollar $.12 is the new one dollar 14 since. jonathan: it seems obvious, but that is why i started the commentary with the start of the year, january 6, when we saw the high of the year. people thought it would go higher from there. they were looking for that cyclical trade to kick income of the sink and i's global growth story, and a weaker dollar off the back of it. now we've got comfortable with the opposite as we look for the euro to move more negatively of the back of maybe divergent monetary policy. all and it was that every year we play this game, this affects market can push the other way, and it can be painful. tom: it has been a resilient dollar. jonathan: euro-dollar, $1.15. let's get you some movers this morning and say good morning to romaine bostick. romaine: the big mover of the morning's johnson & johnson, making that announcement that it is going to split into two companies. one is going to include the pharmaceutical busin

tom: jordan rochester publishes a blistering note on the delay, the move to december how many moves out step towards -- you mentioned 6% growth. i believe mr. rochester is suggesting lesser growth. jonathan: growth expectations provides down. credit card spending is sideways, and real rates in his mind pointed to 1.3450. i miss being in the room for the bank of england. good times. tom: i thought you did a great time in front of the ecb in frankfurt. jonathan: that was colder. tom: and the difference is in london the lunches an hour and a half in frankfurt the lunches three howard. jonathan: in london they make you stand outside. you hit report on the bank of england and people would throw stuff at you. good times. it is not that rough. emily rowland joins me in about 20 units from john hancock. why she thinks you're by should be towards america. from new york, this is bloomberg. ritika: speaker nancy pelosi is pushing the house towards a vote on president biden's economic agenda but a few key issues are still unresolved such as family leave, immigration, and rolling back limits to stat

now jordan rochester joins us from nomura. me get the dollar out of the way because ferro -- because ferro is focused on the sterling. do we need to go ever stronger to find a critical point? jordan: the question is, do you think more can be priced into the fed? do you think u.s. growth outperformance keeps going? does the consumer, the service is pmi's keep going up and stay at these high levels? so far, all of those keep happening while the rest of the world, especially china, are having a slowdown. that feeds through to europe and a european manufacturing slowdown, which we are seeing as well. until those change, i don't see a reason why the dollar should we can -- should weaken. jonathan: help out a lot of people with this one. the bank of england seems to be on track to hike before the federal reserve, yet sterling isn't doing much. can you make sense of that for our audience? jordan: it depends who you are selling sterling against. i am doing it against the dollar because i think it is a nice trade-off between the u.s. a

jordan rochester is scheduled to be with us.y looking forward to talking to the gentleman from nomura. right now in washington, jack fitzpatrick with us. i want to dovetail in our corporate earnings of home depot and particularly target in the signal of a boom economy. i know you don't care what we do on "surveillance," but how does a boom economy fold into the mix of the democratic party? the fact is, democrats like adversity because they say they want to come to the rescue. how does a democratic party do in an american boom economy? daniel: that is an interesting -- jack: that is an interesting question. in some ways, it plays into the democratic debates over redistribution, when you look at what they are trying to do with their social tax-and-spend reconciliation bill. we are not at a point where they are pushing a stimulus, and any action by the government needs to be offset, according to at least the moderate members, so we've gotten much more away from just a keynesian approach to responding to an economic crisis and more