mary daly, welcome back to the "newshour".there's any doubt anymore that prices are seriously rising. what does this mean, do you believe, for american consumers? >> so american consumers are feeling the pain. i mean, there's no doubt that inflation is uncomfortably high and has been so for a while and people are feeling it in their pocketbooks. but what we are doing at the fed is saying we understand that that's there, we also understand more americans have jobs now than they used to, and it's really time for us to start removing some of the accommodation we have been giving to the economy and get supply and demand back in balance so americans can say we have price stability and full employment. >> woodruff: at the white house economic advisor brian deese was saying te white house expects prices to moderate by the end of this year, 2022. is that your sense as well? >> i do think we're going to see prices moderate. we're going to see supply chains get a little bit more back in balance. we have been saying we hope supply chains

we are continuing to monitor mary daly's comments at a reuters event.rate increase could come as early as march but striking more dovish tone, saying the fed is not behind the curve, policy ship should be gradual. the economy is facing risk and you do not want fed policy to overreact. maybe talking down market expectations there now in a high for the year -- at five hikes for the year. this is bloomberg. ♪ kailey: live from new york, i am kailey leinz along with guy johnson in london. let's check in on how u.s. markets are doing. the last day of january and it seems we are ending on a stronger note. abigail: we are ending on a stronger note. many investors wish this were the monthly chart. much of the session not doing much in on the open up and away, up 2.3%. this the best day since last week when stocks were up more than 3%. tremendous volatility back-and-forth but today we are ending on a solid note. the reason i was saying investors wish this were the monthly chart, look at the month, not so great. this is moderna, down 35%, its worst month ever aft

jonathan: that was mary daly, the san francisco fed president, speaking with cbs.uity market is positive 0.05% on the s&p. a similar move on the nasdaq 100. unchanged on tins in the bond market debt on tens -- on tens and the bond market. $82 handle on wti, $82.37. tom: print today, $84.47. it is going to be fascinating. we don't have time now to do not gas. annmarie hordern with us now, bloomberg washington correspondent. getting in here because she is our expert. surveillance wordle today, the letter h is correct. annmarie: no hints. tom: i want to stop and look at a washington part i don't see anyone talking about. this goes to the heart and soul of ron klain, hugely experienced chief of staff to the president. what is the biden policy process? i think a lot of democrats, a lot of republicans, a lot of americans are saying in your white house, what is the policy process? annmarie: it is a great question because it depends on what the policy is. you can see how quickly the administration acts. we know they are trying to get out front, or they have been over the p

you have mary daly saying -- the correlation between wages and inflation continues.ns. he spent a lot of time talking about all the work the administration has done trying to clear those supply chain issues and promote the inflation will get better story. i do not know how successful that is going to be short-term. guy: we will learn a lot next week. we will hear from jay powell. we will hear great deal from jay powell as he answers questions and goes through his confirmation hearing. we will learn a lot more details about how this process is going to work next week. next week is going to be critical. alix: and we get earnings. a lot is happening. coming up, the u.s. house of representatives majority whip jim clyburn be joining "balance of power" with david westin on television and radio and guy and i are also fitted to radio. join us on dab digital radio. if you cannot join us? is out on spotify and apple podcast. this is bloomberg. ♪ >> from the world of politics to the world of business, this is "balance of power" with david westin. david: from bloomberg's world h

mary daly was talking earlier, and she said we have not seen that correlation.ou throw in the investment into technology, and i wonder how that evolves? dana: the key thing is how much businesses can fold in higher wages to the profit margins. for some businesses, especially very large firms, big retailers, they have the capacity to do so, raise wages, offer benefits, all things to attract and keep labor. but for a smaller firm, firms with narrow profit margins -- i think about gasoline stations. it is difficult to raise wages and not pass on those higher costs to consumers. even while fed officials are saying they are not seeing a wage price spiral brewing, it is a risk. jon: since we are going to be talking about different industries this hour, and certainly the restaurant industry, as we navigate the headlines on omicron, if things improve and certain industries that have had restrictions can bring back workers despite the labor shortages you have referenced, do you have a sense on with the labor story will look like in terms of new hiring through the year? d

mary daly saying the same thing, march, let's go. one. -- what will stop it?ictoria: i think they will have to take a step back. if we get a lot more people coming in with the participation level doing better on the labor front, if we have wages that start to settle down a low bit as people come back in, if we see the three month over three month inflation numbers come down a little bit, maybe it doesn't mean that they don't raise in march, but maybe if the reason march, there will be a longer period of time before they do next rate hike. remember, there is a tremendous amount of lack time before we see the -- lag time before we see the effects on the markets. right now, i think they are looking more at the markets. jonathan: srikanth, there is an argument that the calendar is on their side. bank of america says core inflation is likely to peak and then conditions will turn unfavorable. after march, do you agree the calendar is on their side? srikanth: we were in the camp that the sequential inflation coming down buys them a little bit more time but we recentl

we talk a lot about diversity of thought and i remember when mary daly was elevated to be a bank presidentthere was a lot of talk about her background, basically a high school dropout and got a wealth of personal experience to what was ultimately her own professional experience as well as her academic experience. that shaped her research and studying the labor market and she has been very vocal as san francisco fed president to talk about these issues from that perspective. is that necessary as economists when you're are supposed to be data driven? andrew: i think it is absolutely critical. just as an example, i think in retrospect, the fed itself acknowledges they probably started tightening too quickly in 2015. they were mostly looking at the unemployment rate, which they were thinking at the time that 5% might be at, as low as it could go. it turned out that unemployment went down to 4% and below without triggering an inflation crisis. another key factor in 2015 was labor force expectation was still very low. a lot of people had given up looking for work. over the last five years prior

fed chair mary daly is singling out for takeoff. chairman powell earlier in the week spoke about the need to be mindful of not injecting more pain into the rest of the economy. interest rates are going up in the u.s., it's a question of at what rate. dani: thank you so much. let's switch to the corporate story. we have results from asia's most valuable company, let's get the details with juliette saly in singapore. how blockbuster were these earnings? juliette: we know we are in the middle of the crunch with strong demand, iphones, everything from tv's two cars. a 16% increase in their income for the fourth quarter, and there are another -- number of other factors as well. this is leading a lot of analyst to say they will increase in spending with the current projection of about $100 billion. you can see over one year we've seen it responsible for a huge spike in what we saw in the broader index as well. is it too expensive? this is the share price in the month of december. we got the earnings multiple remaining two standard deviati

alix: i should point out mary daly is talking right now.ng that the fed could adjust their balance sheet after one or two rate increases. that goes to your point earlier that there could be a scenario where we see a lot of tightening happening in a small window, and that might support that we are in a time where we need to adjust policy. guy: that raises the prospect of a policy mistake, doesn't it? the fed has been wait, wait, hurry up, and now we are in the hurry up phase. i think it is potential he going to get really tricky for the fed. they've left themselves in this position. now they have to deal with it. alix: that was another question this week. which tool will they use more of which rate hikes or the balance sheet adjustment? coming up, we are still awaiting president biden and his were marks on the december jobs report. this is bloomberg. ♪ alix: live from new york, i'm alix steel come with guy johnson in london. every friday that guy and i are here, we pick our favorite charts. this has to do with technology. the s&p 500 is the

11: 30 am, perhaps san francisco fed president mary daly will talk about it.his goes to the quote in "the financial times" over the weekend, the atlanta fed president saying if a 50 basis point rate is required, than i am leaning into that. you pointed out this does not mean he supports a 50 basis point hike, but it means it is not off the table. maybe a 100 paces point hike is not off the table. but do they see a problematic amount of inflation that they want to get ahead of, and do they suggest with their moves at that is what they are doing? today, the u.s. census bureau coming out with a report about the incomes of older americans. the reason why this is interesting to me is because deeper dissipation rate stays very low for those 55 and older in the united states, basically retiring. it is not a great job market for the jobs they want to do, especially if there are problems with respect to covid, so how much do we see any information on that? qatar's emir will meet with president biden. how much support as the confrontation between russia and ukraine gets

we have heard from mary daly, governor waller, jim bullard, who want to actively substitute during morebound sheet and less on the front end. we have not heard much from jay powell on this, but i anticipate the rest of the committee will want to allow the financial condition tightening to happen as a result of that and do with the need to on the front end. not actively substitute between the desk of and understand both of them will be tightening. lisa: what you disagree with peter tchir who says this could be the fed jawboning. matt: the economic reality is we have very easy financial conditions. inflation is well above target and they expected to remain well above target. wage growth and inflation expectations, the broadening of inflation pressure suggests the risks are to the upside. in that environment i think it would be surprising for a central bank to jawbone their way towards tightening monetary policy. i they for the actual tightening needs to take place via policy rates and also the balance sheet and i expect the fed will deliver on that. lisa: one research -- one reason your r

happens is these numbers have turned and you have the first dove to take flight, so to speak, was mary dalyed for the fed to address this. the question is where we separate hawks and doves is and -- this is fealso going to be something i think chris waller is staking out the extreme hawkish position on the fed people want to hear from ester george later the idea of reducing the balance sheet is one of the more hawkish of the fed >> meantime, walmart making a big bet on the direct to fridge delivery service >>> here is your cnbc news update at this hour. public schools are closed this morning. they closed after the meeting voted to temporarily transition to the remote learning it accused the union of organizing an illegal work stoppage teachers responded in a zoom call >> we're not part of the union that's trying to stop kids from going to school. all we're asking is that we work in safe and fair conditions. how dare you put on the air waves and in the news media that we're trying to cancel schools before a vote was even taken that's a slap in the face. >> and kazakhstan resignations around

haidi: on that topic of inflation, we are getting more comments when it comes to mary daly, the san franciscoed president saying she sees prices moderating as supply imbalances ease, saying that she's bullish on the strength of the u.s. economy, these comments coming in an interview with pbs at the moment, saying inflation is uncomfortably high and that we are moving fed accommodation will help ease demand pressure. this comes as we saw a slew of fed speak this week, as well, federal reserve's governor say is tackling inflation getting faster the 2% while also maintaining inclusive recovery is the most pressing task for the fed. and given that we see just such an unusual economic picture, the assumptions that are being made as to what normalization paths look like kind of assumes a normal reception. what is the policy risk here and how do you as an investor hedge some of those uncertainties and dislocations that we are already seeing? jenna: so, we know that the medium to long-term direction. this is a very typical late cycle. what we are about to see his policies coming in to balance out gro

it was pretty hawkish when you started listening through with lael brainard, parker, mary daly, charlieurprising to see ten-year yields actually come down. what have two-year yields done from a week ago? >> you know, two-year yields a week ago, we settled with 86 basis points we're now at 91 basis points they are up a bit. that's a good call but the issue i have with fed speak is, you know if the principal brings you in front of him because your child has an issue. you say i will make sure this doesn't happen again i think with respect to inflames it was a faux pa, the fed left the welcome mat open for compensation and the tier, they're overcompensating for the guidance, will they have four or five tightenings next year my answer to that is think 2018. >> we'll see you're right >> i think how the economy responds is going to be key. this is going to be done and we're going to see in live terms when they raise rates, when they give guidance at the march potential for increase, how the equity markets react how nasdaq reacts. anybody who doesn't think the federal reserve is trying in many