joining us is san francisco fed president and fomc voting member mary daly.be here. >> just starting with economic data, if you add this to a few other reports we've gotten lately from manufacturing and last month's jobs report, a lot of data misses what do you make of that >> well, when you open from being mostly shut in a global pandemic, then it's just going to be fits and starts a little bit. but this is really what we expected i would smooth through the volatility of the monthly data and really see the underlying strength of the economy. there is considerable momentum that's building. i'm still bullish about the fall we're really going to have to steady the boat and ride through some of this volatility as we figure out how much momentum the economy has. >> you know we're going to ask about inflation because that is at the top of concerns for wall street lately. basically the s&p 500 hasn't done much since april and there has been consternation over the inflation question are you still firmly in the transitory camp? and if so, what sort of data points, nu

annmarie: certainly, and we also heard from mary daly from the san francisco fed.he was a little bit more specific, saying initial discussions are already there. she was talking to cnbc. as you say, what this has to do in the bond market, at least the fact that many are starting to potentially believe in the fed's believe that it's going to transitory inflation, that is starting to cool some of that volatility that you brought to my attention this morning with the bloomberg terminal chart. also what were seeing in terms of the bond curve, that is starting to flatten as well. we have jackson hole ahead, the potential on the pullback of the tapering, will that induce any sort of volatility in the upcoming months? manus: you talk about volatility, this is the swaps market, it's about quashing volatility in the united states of america and to a certain extent, the european bond market. the lowest rate since march, and i put it to you that this is what the fed wants to achieve. this is what they want to get a handle on an pullback, they want to build a narrative that st

thank you both >>> speaking of fed, don't miss an exclusive interview with mary daly at 3:00 p.m.tern right here on cnbc >>> we're out with our nineth annual disrupter 50 list there's one with more companies on the list than any other category we'll tell kyou what it is we're auctioning off an nft of his famous haines bottom all proceeds go to autism speaks, a favorite charity of his. to bid, go do mintable.app/cnbc. it ends tomorrow morning at 10:30 a.m. eastern time. we're back in a moment designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ visit tdameritrade.com/learn sometimes, you want speedy but reliable. state-of-the-art but dependable. in other words, you want a hybrid. so do telcos. that's why they're going h

headlines coming up from san francisco fed president mary daly.o surprise, saying the labor market is in a state of flux, there are constraints, but she does not want to call them shortages. she wants to call them bottlenecks. she also talks about imbalances in the market. she says she does see evaluations that are pretty high and to rethink financial systems to be resilient to shock. either way you slice it, it is the same idea. we will let it run hot, there'll will be some frothy stuff, but there is no problems. guy: if you're worried about the level of markets, do not put quite some much liquidity. alix: not shortages. bottlenecks. guy: the language, transitory, and other word. alix: transitory, temporary, and bottlenecks. the 30 year breakevens at a year to date high. we saw breakevens hit their high since 2006 as inflation expectations move higher. let's talk about more inflation when it comes to salaries. please do not leave if you're at a bank. here is a $40,000 bonus. that is what ubs is offering junior bankers when they're promoted. this

hear even the san francisco fed come out and give a nice dovish or more hawkish comment >> yeah, mary daly >> yeah, that's a big sign so this is deliberately being engineered i think they're doing a good job of it. it is no longer just the dallas fed and my successor, mr. kaplan, but it seems to be a consistent message that's what you want, market operators want to hear what the overall theme is and want to reduce uncertainty >> why do we - >> so i think -- go ahead. >> why do we keep looking over the fed's shoulder, richard? if you were still the president of the dallas fed you wouldn't want everybody looking over your own shoulder you would be like, what are you guys talking about, we're going to get it right, we know what we're doing. why are we second guessing a fed that hasn't made a mistake they've yet to make a mistake. >> right >> you can say they've done too much for too long. that's different from making a mistake. why are we suggestive that they're going to this time >> well, i don't think they are. i think it is a matter of timing again, we know the direction the question is th

people talk about tapering, the fact that, yeah, we are talking about tapering san francisco fed, mary daly, tells cnbc, yeah, we're talking about talking about tapering it may well be in coming meetings we will be at the point where we begin discussing scaling back you told me we would have that and the market would stand up and the ten-year would be at 155. you said what? >> let me get to that one second very quickly on exxonmobil - >> no, i want this >> exxonmobil is a buy >> no, i want this right here. sorry, we moved on let's go, please >> so what i would tell you is that there is clear resiliency within the market currently. you experienced a cryptocurrency excessive leverage sell-off. the market was able to power through that well. i think what you are seeing now is you are seeing a catch-up phase. you had the s&p and the dow industrial, which both made highs in the early part of may now you have the nasdaq, which last reached a high at the end of april that is now the leading index. scott, i think the opportunity becomes now looking towards the russell. i said on monday i think the