that was the conversation with mary daly. who do you have coming up? editor of the economist. we will talk to her about an interesting cover, saying that a market may be overstated, may be headed for more troubles for structural reasons. that is coming up on friday at 6:00 eastern time on wall street week. katie: really looking forward to that conversation on wall street week at 6:00 on friday. this is bloomberg. ♪ how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. katie: let's take a quick look at some stocks hitting highs and lows on this monday morning. amazon hitting a 53-week high on news it will open smaller whole foods foods stores in large u.s. cities including the upper eastside in new york city. amazon up .9%. you also have nvidia hitting highs, another milestone. the chip giant overtaking saudi aramco in value. currently up 3.6%. on the other side, you have paramount hitt

haslinda: and we heard from mary daly who said if the data justifies a rate cut the fed is prepared to move but right now the data is not suggesting any move just yet. yvonne: it does not seem so. obviously we saw the jobless claims numbers showing a little weakness for the labor market. look at global macro movers. slow going. we are not seeing the volatility that we saw in the u.s. hitting those records when it comes to u.s. equities. and video helped that -- nvidia helped that again. china tempered down expectations that we could be seeing an exit from the boj. other officials like board members saying it looks like we are getting closer to an exit policy. there is still some confusion but it is lifting stocks. mixed across equities. we talked about hong kong. we are still on track when it comes to stocks for a six straight week of gains. haslinda: it is about cpi. just breaking. consumer price index coming in higher than anticipated. 2.75%. the estimate was 2.6%. both in terms of year on year and month on month higher than anticipated. bear in mind, it has kept rates unchanged at 6

katie: that was federal reserve bank of san francisco president mary daly and david westin.r more from that conversation later tonight at 6 p.m. eastern wall street time on wall street week. this is bloomberg. ♪ katie: the search is underway at vanguard for a new ceo after tim buckley announced he will retire by the end of the year. for more on this news, we are joined by eric bell bloomberg intelligence. he is the authority on vanguard. you literally wrote the book. talk us through the legacy that tim buckley leaves. he's been in this post since 2018 or so. >> tim buckley's legacy is a big one. the next ceo will have big shoes to fill. basically over so vanguard's assets grow by 4 trillion he doubled those assets. fortunately, it's bigger than most asset managers have total. it also really leaned into etf's and that was smart because etf's are the vehicle of choice for most investors especially advisors. he learned hard into etf's. a lot of investors internally switched over. he pushed the advisory service. vanguard investors are getting older so they started an advisory se

san francisco fed president mary daly speaking as the metric increase by the most in a year. at what we are watching in the asian session. quite a bit of buoyancy, japan stocks extending gains by 0.8%. the topics putting out about a half percent. the rally in australia finally rising to the record high we have been waiting for for quite some time. lithium angle minors are dominating, but a little uptick when it comes to the iron ore minors as well. consumer staples also doing quite well but health care dragging. the sx up from the 2022 lows, we are set for a bull market close in this session. earlier we did speak to the governor who spoke about the need for patience and the decision-making that went into the ultimate decision to hold in this week's meeting. he is also speaking before the chamber of commerce in canterbury, saying inflation is too high but declining. expectations have declined but policy needs to stay restrictive for some time. he said 5.5%, the policy needs to stay at least for this calendar year. he does expect to normalize policy by next year. annabelle: jus

san francisco fed president mary daly spoke with bloomberg and said the fed is at the ready but theres no urgent need to cut rates. >> we want to avoid holding on all the way to 2%. they are putting policy very tight, and then causing unnecessary downturn. we are agile, and we are sitting in what i call the ready position. we are ready to make moves and adjust as the data demand is to do. i think the economy and policy are in a good place to do that. sonali: joining us is george bory and peter of exotic capital. you are looking at softer data in some areas of the economy. how much does data need to weaken for the fed to cut rates? >> you make a great point. it is kind of the lead up to the discussion that hits the nail on the head. it is about pace and confirmation. in terms of pace, the fed has pushed out expectations. they are telling us in no uncertain terms they need some validation that the trend, the downward trend of inflation is still in place. it will tell you that inflation has kind of stalled in here. and we are going to need to see further true evidence that while there mi

david: we had mary daly on that said she thinks it's around 2.5% of long-term neutral rate composed ofonents. larry summers has come on inside his much higher than that. you have said you think it is higher. ken: i've studied the most the 10 year rate, the long-term date , -- data, it's more in the range of 1.5, 2% than in the 0% that it was from 2012-2020 one. short-term rate, it's possible the term premiums change. look at the economy? it doesn't feel like we have a tight monetary policy. if we were 3% above a neutral rate you would think something would've had faster and harder. i would agree with my colleague larry summers, we are probably more like a person or 1.5 what would be a neutral rate. if you're aiming for 2.5 i think he will stop a long time before you cut there. david: bring us back to that question of biden or trump next year, either one of them will have to deal with the consequences of it. assumptions of the budget are much more modest when it comes to budget. ken: there are two ways they could go a kid in-depth -- in-depth and inflation. that's why inflation is stuck

jonathan: i remember that conversation of mary daly of the conversation -- of the san francisco fed. when the data was in conflict, it meant we are at turning points. have we turn anywhere? jobless yesterday were rocksolid and we've seen the conflict for a number of months. lisa: i've been focusing on the exhaustion feature. it's been a model for a long time. everyone's waiting for a turning point that hasn't happened. do you embrace that this is the reality and there are different cycles in conflict with one another and moving beyond one another? it's a difficult moment to have conviction. jonathan: do you enjoy the weeks we have no fed speak? lisa: in quiet times, people say what will they say? than we imagine what they will say and then we get the fed speak after that. pick your battle. jonathan: you get fed speak this coming week with a jay powell news conference wednesday afternoon. let's get to an update on stories elsewhere. >> a mas proposing what it's calling a comprehensive cease-fire deal as it tries to make progress on talks with israel. it was see the fraying of hostages

david: when i talked to mary daly yesterday asked her this question.ey do take into account or run cost on individuals, although they did -- although she didn't say how. if they want to get it down they should cut rates, right? they can fix that. david: katie: fight inflation by cutting rates. it feels wrong to even say. i think it is an important point. we think about the costs and price pressures americans feel, a lot of that does come from higher interest rates and the fact that is taking up a larger part of their spend. david: this is particularly important for president biden as he tries to seek reelection. because that man on the street is the voter on the street as well. ok, you are feeling the pain of those borrowing costs, but is not my fault, so don't blame me. katie: exactly. that relationship, it is tenuous at this point. i'm sure that biden the candidate would love to cut rates, but he cannot say that. david: exactly. i thought it was an interesting expert nation. it makes sense we should take into account borrowing costs in assessing what

kai: mary daly was talking about your special talent, that you are a listener, a consensus builder.hat is your special talent? why do you think you have this job? chair powell: why do i have this job? kai: don't ask me. chair powell: when i got to the fed in 2012 i had no idea what it was to come. i will say what i tried to do on listening is i think if again, if you do listen to people and they understand that you are hearing them and not just kind of explaining things to them, and they get that and they feel listened to and heard from, for most people most of the time that is going to be enough for them to go along, even if they do not like a decision. it also builds relationships, so i have spent a great deal of time with our oversight committees and beyond that on capitol hill, more so than my predecessors, and i think they see the fed as -- i want them to see the fed as what it is, which is this nonpolitical agency that does not run talking points at them and is not political and is just doing our work and staying out of political issues. i am in their offices listening to what

even mary daly this week on bloomberg saying consumers are concerned about inflation, one of their top. we cannot really lower rates to continue to stimulate the party in the way he's adjusted he might from his comments in december. annmarie: this is something i thought -- lisa: this is something i thought was interesting, he said things to make people happy but did not address the issue of financial conditions easing and what that would do to push them further away from their goal. do you think that is because it is no longer relevant or because they are not aware of how much the incredible easing in financial conditions has made it were difficult for them to congress inflation? avery: at that moment in time, he just didn't want to stop the party. it is clear financial conditions eased so much but he was hoping inflation did not accelerate for a while and he would have leeway to keep everything on a steady course. because inflation has accelerated and is prominent in consumer's minds, financial conditions are flowing so quickly they have had to walk back this financial conditions don'

i think they are looking at this from the 2008 lens and looking as i heard mary daly talk about it. she said we're looking for office real estate problems. that's not the issue. the issue is you own assets that may perform. >> the issue is the lenders. >> new york community bank has rent controlled apartments. that may have been great with zero interest rates. now your rents will never keep up and the asset value will go down. you can pretend the assets are fine, but the mortgages at 3.25% are trading80 cents on the dollar. that creates a big issue on the balance sheet. lending to the federal government as well because the banking system is crucial for all the treasuries with two years and seven years. that problem needs to work its way out. >> barry, i really appreciate your deep thoughts and walking through it. >> that's from "saturday night live." deep thoughts with barry knapp. can the market go up with apple stalls or goes down? >> it seems to me that story around productivity and a.i. is deeper than apple. >> we need a new mindset of what is exciting in the stockmarket. the ba

mary is, you know, cargo ships like this one, the dali have gotten much bigger over the years. what improvements should be made to american infrastructure right now to accommodate them? and to ensure that no other bridges and ports are at risk >> well, i think newer bridges already have made many of those considerations some of the newest bridges and analog of their suspension bridges due incorporate what they call fenders. or if you will bear it for years around the bridge supports. they do include what they call dolphins or if you would think of it as giant cement and rock cylinders and they are reinforced, they have addition, additional standards. for example, there's a new a new suspension bridge in charleston, south carolina, replaced an old bridge very much like this, two miles long 100,000 vehicles a day >> i >> cost almost 1 billion and it was finished ahead of schedule, but it has more modern things such as the supports, the additional restructuring, the entire bridge is covered with cameras and that's the state of the art now and they learned a lot of those lessons fr

mary, we have this new video tonight. quite extraordinary of ntsb investigators on the dali cargo ship. and they're inspecting hazardous materials, they're gathering data. i know you've been able to watch this video, tell us what stands out to you well, what stands out is already they've been able to make a lot of inroads. the ntsb has been able to make inroads and telling us what happened. the y is going to come later, but we now know there was just one minute and 29 seconds from the mayday to get the people off the bridge. we know that once the power went out, the the data recorder did stop recording many parameters, but they were able to tell the speed of the ship when it hit the bridge, seven knots, eight miles an hour and that they do have positioning of the rudder that was still recorded. and of course they had all the voice data that they still have. so that's a good bit of info formation that they have to work with. and they are in the process of downloading and getting all the other information that they can get from the bridge, from anywhere else on the ship, from any other re