we go to madame lagarde now. than: let's head to frankfurt, germany to listen to the ecb president. pres. lagarde: looking ahead, the ongoing vaccination campaigns, together with the gradual relaxation of containment measures and expectations of a firm rebound in economic in the course of 2021. inflation has cap over recent months, mainly on account of transitory factors and an increase in energy price inflation. at the same time, underlying price pressures remain subdued in the context of week man and significant slack in labor and product markets. while our latest projection forecast will see in a gradual increase in underlying, we have cared the the commercial outbreak stays broadly unchanged from december 2020 and below are in nation a. -- below our inflation aim. preserving financial conditions over the pandemic period remains essential. financial conditions are defined by a holistic set of indicators spanning the entire transmission chain of monetary policy, from risk-free interest rates. market rates have i

what question would you ask madame lagarde this morning? jonathan: ok, if you don't like what you see, what are you doing about it? it is that simple. if you do not like the market, the backup in yields -- tom: are you talking fiscal policy? jonathan: they want that to happen but the next is how they cap interest rates and yields. tom: is there any evidence i can do that? jonathan: yield curve control. there is evidence. 12 months to the day i must when christine lagarde said -- almost when christine lagarde said they're not closing spreads. what did they do ultimately? they closed spreads. another issue the president has, something mario draghi managed to navigate block the whole governing council into a corner. paid the mentor corner inside this is what we're going to do, are coming with me. present lagarde needs to do that more. tom: interesting to see the press conference. we will have coverage on radio and television. jonathan: good morning. we look like this on the s&p 500. we drift higher by 29 points on the s&p. you might find in th

and we will hear from madame lagarde. question whether they believe it is a fleeting spike in inflation or not, but certainly it is not going to be an easy job. the european market open is up next with anna edwards. this is bloomberg. ♪ anna: good morning, welcome to "bloomberg markets: the european open." our markets live editor joins us to take us over the market action this hour. the cash trade is less than an hour away. treasury yields steady. tame readings on inflation. next level full markets in the treasury auction.

today he even said he wants to reassess -- this is contrary to what we heard from madame lagarde anddamant that whatever short-term inflation they see come it will be transitory. you're not hearing that from andrew bailey. if you have a combination of the short-term fiscal injection plus the opening of society, and that favors 250 billion pounds of savings, it is almost like he is erring more towards the side of earlier lift off compared to his peers. whether he is comfortable with that remains to be seen. he is certainly comfortable about that. the boe is more willing to countenance tightening compared to global peers. alix: you mentioned about the u.k. the u.s. will not stand in the way of higher yield. then you have europe, which is still waiting for the evidence that ecb will pick up their pepp buying. where is biggest disconnect in the price? geoff: the -- those are the areas where we could see early inflation, early lift off. it is more the economy with a much faster transition into certain economies, as also with the pent-up demand unleashed, it is not like whatever the fed do

jonathan: couldn't agree more -- and for madame lagarde. jonathan: couldn't agree more.k back to the speech from bobby ofo netta, the recent -- from fob be ofo netta -- from fob be a -- from fabio for netta. tom: that's where i was going to go, just shocking to see some of the challenges on the pandemic in europe. right now, after an exhausting weekend, kevin cirilli, our bloomberg chief washington correspondent, with us. i really want to move forward right now. give us the timeline of the implementation of this $1.9 trillion. when is it dropped upon americans? kevin: tonight, the house of representatives is likely going to hold a procedural vote, a very narrow majority because of the democratic advantage in the house of representatives, so it is a very near a majority, and speaker pelosi has to keep her caucus together. as early as tomorrow, the house, after the procedural vote for final passage because of the changes that the senate made to this piece of legislation over the weekend. so the biggest unknown right now , and the biggest difference right now is that the ho

you were talking about madame lagarde and how she didn't really add much clarity to the issue, but theyeally have a tough message to give. short term, they need to provide more accommodation. this really is the key. the acceleration of purchases, what are they going to be buying? italian bonds? jonathan: maybe. just compare and contrast the forecast to what you'll get from the fed next week. lisa: night and day. jonathan: barely revised higher, the growth forecast. looking for something in and around 4%. look at what we are getting as a guide from wall street right now on the sell side. we've got 6%, 7% gdp growth this year, and the fed, i imagine couple will have a huge upward revision. lisa: they have to because that is the reality people are looking at. but the question is, how do they then talk about the reaction function? how do they take that higher gdp forecast and explain how they will change policy according to the strengths? jonathan: the outlook looks good. what do you want to own? anna han joins us now, wells fargo equity strategist. we have just ripped in cyclicals. the nas

tom: within all of that fancy talk is the word pandemic, and madame lagarde is going to have to addressf denmark and the eu today. to me, the overarching theme particularly against the united states is the ecb has to deal with a continent that just simply can't get the pendant trend in the right direction -- the pandemic trend in the right direction. jonathan: totally agree. just compare and contrast what you will here at 8:30 eastern to what you will hear in the news conference with chair powell on march 17, when you hear them talk about the forecast. chairman powell is going to have a radically different outlook for u.s. growth, and those revisions are going to be significant more positive than what i imagine we will see in about 35 minutes. tom: with the criticism of christine lagarde, frankly, she may be very adept on the political side to address frustration over the pandemic, as you mentioned earlier -- mentioned germany earlier. jonathan: it was a bit of a faux pas when she said it wasn't the role to close spreads, and it turned out that it was. but they got their act together in

we are biased with our relationship with madame lagarde over decade. the jury is out.s in support of the effort of christine lagarde? jonathan: i think the chief economist is in support. i do not want to say they have clashed, but what they have seen is a cleanup act with philip lane following president lagarde. that cleanup act we have also seen in the united states. tom: fair. the cleanup act has been vice chair clarinet. jonathan: what we have seen is a tremendous -- the experience of leading a central bank and not being an economist and not having your hands around monetary -- around monetary policy in the same way as clarida and lane, i think lagarde has struggled and i think powell has struggled. tom: is it a cleanup act of the politics or the non-politics of the united states of europe, or is about christine lagarde? jonathan: it is a cleanup act about the economics. for many people i have spoken to, they are much more comfortable talking to me on background and not on the record. they would like to see philip lane in the press conference on those thursdays in f