kathleen: mary daly speaking at the global equality summit.ur next guest does not see an inflation -- does not see a recession but she sees concerns. this is a two sided coins. no matter what side you look at. if the fed itself knows that it does too much it will cause a recession. what can consumers and businesses -- if you are an equity investor, what do i do? >> thank you for having me. we are not in the recession cap at this time. we believe equities can move higher. as we go into 2022, into the strong underlying fundamentals in the economy in how corporate profits have recovered. the consumer is still strong, even a sentiment is a little weaker and you also have an appointment down to pre-pandemic levels. we are encouraged to have a neutralized equity like 50% in a 50-50 portfolio. we also have cash to buffer against the volatility in the near-term. kathleen: you are moving more into cash, are you getting rid of some of the investments you do not think are going to farewell? are you actually seeing any reason to say, that price looks good

san francisco fed president mary daly will be speaking to bloomberg. that is ahead.berg. ♪ alix: let's -- kriti: let's get a check on u.s. markets. abigail: interesting and competing signals here. the s&p 500 down. in little bit of a break in the rally we have had over the last several days. for course, last week the best week since november 2020. you have apple up 1.5%. that suggests risk sentiment. have crude back above 115, a bit of a headwind. again, those next signals, then bonds up slightly with that 10 year yield down. if we look at what is really flying on the day, and actually over the last couple of days, this is really incredible. if you bought there you are pretty happy. this is the golden dragon, china tech index up 53% in a little more than a week. talk about risk sentiment. even as rates have been going to the upside, folks wanting in on china tech. that is true for meme stocks. gamestop up 13 point -- 13% after rising 30% yesterday. amc also higher. mullen automotive earlier today had been lower, but on the month you can see it is higher, up more than

merely -- mary daly said another 50 point basis i hear.oke about the tiny pat. >> the traditional way we have done is you raise the interest rate and rest the meeting. it is that gradual approach that was meant to see what was going on and make adjustments. but the median had seven increases in 2022. that suggests quite a bit of frontloading on policy. i will remind people that we will also make balance sheet adjustments as early as in the may meeting but that has not been decided completely yet but that is another equivalent to another rate hike. this is something we often don't talk about. we are making these adjustments at the same time other central banks across the globe are tiny policies. that is something we have to think about. i think relative to previous times, this is quite a bit of frontloading. >> chairman powell set on monday he is open to a 50 basis point move and the market is taking him at his word. are you willing to support that? >> i think the data will tell us whether 50 basis points or 25 basis points in the balance s

kathleen: mary daly says that a rate hike may be needed in may.ke with michael. >> a traditional way that we have done it over the past couple of decades is you raise to interest rate and rest the meeting. it is the gradual approach power the men to see what is going on and then make adjustments. the sep meeting was seven increases in 2022. that suggests quite a bit of frontloading on policy. i remind people that we are going to make balance sheet adjustments as early as in the main meeting. that has not been decided completely but that is another equivalent to at least another rate hike. and then, this is something we often do not talk about, we are making these adjustments at the same time other central banks are making similar types of adjustments, tightening policy, we could get a lot of tightening and financial conditions globally. that is something we have to think about. i think relative to previous periods of tightening, this is quite a bit of frontloading as the sep has indicated -- scp has indicated. >> are you willing to support that? >

mary daly says the federal bank should be marching up to neutral. why jim bullard says faster is better. for more on this, we are joined by enda curran. how much backing does powell's 50 basis point hike, the possibility, the lack of things holding him back from doing that, how much credence and support is that getting from other fed speakers we are hearing from? >> -- enda: we had a volley of hawkish rhetoric from fed officials. mary daly saying not only do they need to get rates back to neutral, they need to go into tightening territory for the economy. we have jim bullard saying on bloomberg television a similar message. faster is better. he voted for the rate hike already. seems to be leaning towards the jerome powell camp. the fed seem to be responding to criticism behind the curve. they have not acted fast enough to contain inflation. in the space of a week, we have gone from commentary over incremental rate hikes to a big move by chairman powell. fed officials weighing in behind him so by all accounts, a lot of the expectation is for bigger m

michael mckee spoke to mary daly on the impact of the war. ry: the invasion of ukraine and ensuing difficulties, first ukrainian people, but we should think about the effects on the economy, it is definitely a global headwind in the u.s. with the domestic economy, i see a risk to inflation, further upward pressure on prices, gasoline. we have seen it at the gas pumps. caroline: president biden is on his way to europe joining the summit thursday with nato. the g7, european union, all of that in brussels fuld he is expected to try to rally allies and partners around his administration's tough approach to russia. let's bring in annmarie hordern, who is following the president live from brussels. it is a tough balancing act once again. we are worried about chemical weapons being used. we know that the united states in no way wants to be saying they will in any way had on conflict with russia. annmarie: it is a balancing act, and it will be one when the president touches down in brussels. he is en route over the atlantic on air force one. he wants

no, mary daly is also speaking today. jonathan: this week, there will be tons.erviews here, there and everywhere. lisa: what will we glean from them in terms of the reaction function if last week's press conference seemed to give the different message than we thought that it gave, at least at first blush? jonathan: it would be interesting to see if they believe the market correctly interpreted what they were trying to communicate. they have been open about that. if they believe the market has picked up on their communication , they said that, so i wonder if they buy the price correction of the past couple of days. lisa: fed officials are also confused as to how to accurately characterize this economy, so how do you even direct a given that circumstance? jonathan: futures down 0.1% on the s&p. on the nasdaq, lower by 0.2%. an important conversation with the latvian defense minister up next. ♪ jonathan: kicking off the new trading week with interesting moves in the bond market. futures down .1% on the s&p. in the bond, yields higher by 222 on the 10 year. not the

mary daly now backs robust acts. and one of the two flight recorders from the china plane crash monday has been found. the black box is the key to figuring out why the plane suddenly plunged out of the sky, approaching the speed of sound before crashing. a tornado ripped through new orleans, causing severe damage and killing at least one person. thousands of people were left without power. the u.s. and u.k. have resolved a long-standing irritant on trade. it will allow 500,000 metric tons to be imported duty-free. the u.k. also will end retaliatory tariffs on more than half $1 billion of u.s. equities, including consumer goods. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. this is "bloomberg." >> you're going to see a stagflation, and higher inflation within that. a recession in europe, stagflation in the u.s., and a number of commodity inputs running into debt problems. that is the sort of world we are given at. jonathan:

jonathan: that was mary daly of the san francisco fed.ures up 0.6% on the s&p, on the nasdaq up 0.7%. we are taking a look at what is happening in russia. so the stall -- the steelmaker unable to pay within a five day grace period. i am going to read out the story verbatim. it is keen to pay, but citigroup, acting as a correspondent bank of the unit issuing the debt, is blocking the payment. a person familiar with the matter says citi asked the company to get permission from the u.s. office of foreign assets control book for -- assets control before it could remit the cash. this is really interesting. what is going on here, here is a company who says we have the money, we want to pay, but we can't pay. is that a default if you have not received that cash, but they want to pay and are saying they can't get the money to you? tom: i would say it is a war, but the symbolism is this is something that is steal from the 1930's, the time of stalin taking out, made public by yeltsin, etc. these are the people that bought rouge steel, which was for

including fed governor chris waller, new york fed president john williams, san francisco fed president mary daly, richmond fed president. watch for the twos-tens, the five 30's inverting for the first time going back to 2006. do they care, or do they want to see this in order to crimp demand? today we get treasury auctions, including $50 billion of two-year notes at 1:00 p.m.. two-year notes are really interesting to me. we have seen this dramatic shift. people were saying it is not where we go, it is how quickly we get there. still we see risk assets holding in, which goes back to the resilience of the consumer point, which is the reason i am so focused on it. at 2:45 p.m., president biden announcing his fiscal year 2023 budget. it will be all about reducing the deficit, of course about what is not being called the billionaire tax, but what everyone will call the billionaire tax, a tax on ultra wealthy individuals. how much do we offset some of the increased outlays, and how much focus on mitigating the next downturn, given that the federal reserve will not have all that ammunition? they might

san francisco fed president mary daly. cleveland president loretta mester. how much do they talk about this flattening to tends curve? how much do they talk about the five 30's curve? the gap between 30 year and five year yields shrinking to the narrowest between 2000 and seven? we know what happened in 2008. much of a looking at a longer-term slowdown, secular stagnation? how much are they trying to get away from that as they try to be aggressive now? today is day one of the bloombergtv quality summit. the ceos of macy's, visa, and new york life all joining. how did they view the idea of esg in light of a shock? in light of something that actually changes the landscape on both an ethical standpoint, as well as a commodities standpoint? how number can some of these categories be as people increasingly allocated these categories? jonathan: germany's foreign minister is speaking at a tesla factory opening near berlin, and this headline gets your attention. want to be independent from russian crude. whether they choose to make a major move this week, though, th

other fed speakers throughout the day, including president jon williams, san francisco president mary daly, and please and -- and the cleveland president. we are going to be talking about the rate hiking cycle in may. but also the yield curve. jay powell dismissed it yesterday is not being necessarily something that pretends recession. we are seeing that key spread narrowing to going back to at least 2019. if you take a look at the gap between five-year and 10 year treasury yields it is the widest since 27 -- 2007, a year it would not be happy to compare this winter. this is also day one of the bloomberg quality summit. i'm curious to hear how they address the current situation in russia. how do you deal with a fast-moving ethical backdrop? what does it mean to have ethics roped into investment he sees at a time when commodity sector is left for dead or left for ethical dead are now booming. jon, it is a conundrum to get performance for a lot of the same foundations, and frankly retirement accounts, at a time in the concept of ethics is changing. thank you. looking for to your coverage of

today, mary daly. >> it is part of our policy. >> than additional fed president interviews thursday onmberg. >> fed president james bullard says u.s. monetary policy needs to be tightened quickly to keep inflation under control. he spoke excessively with michael mckee. >> faster is better, and i think the 1994 tightening cycle or removal of accommodation cycle is probably the best analogy here. that one was quite successful. the fed moved 300 basis points in a single year. then made some adjustments afterwards in 1995. the result was hitting the inflation target over the next 10 years. the economy boomed in the second half of the 1990's. we move the policy rate up discreetly. i think 50 basis point moves will definitely be in the mix. and definitely get to a level that we can be neutral. and then from there, we can decide if we want to be restrictive and put further downward pressure on inflation. right now, if the wrong place to be given where inflation is. >> the markets are now pricing and 50 for may 4. the fed doesn't like the surprise of the markets. should we assume that is what