. ♪ joe: i want to go to mike, our economics correspondent, michael mckee out in jackson hole where marioghi just made those the ecb having more work to do to get to the inflation goals. michael, thanks for joining us. what was the message he was trying to send? awayel: he had to get without any market moving comments, but he was asked about the efficacy of the qe program that he announced in jackson hole in 2014. he says it has worked very well. it pulled the eurozone out of recession and out of its crisis. that wascrisis underway in 2012 and 2013 and 14. he said we are not completely there yet. we're still seeing the recovery gain strength. we are not seeing inflation move as the recovery gained strength. it should converge towards the 2% target. until that point, the ecb must remain on guard and in his words, a significant amount of accommodation is still necessary. what we are getting is a comment from him not unlike what he said that they are looking to a recovery. they are looking for the day when they can dial back. but they are not there yet. he buying bonds. he didn't say that, b

michael mckee and michael sneed are both with us. michael mckee, let's get the set up for friday. estors will be looking past this because we have this huge month coming up in washington with the debt ceiling and continuing resolutions and not your have harvey aid on top of that. i would say is that historically over the last 10 the 20 years, the august report has tend to -- tended to come in under analyst expectations. maybe a little bit of an impact in the bond market, but in general, we have seen investors sort of ignore the job market, a little bit of a reaction but at the end of it, we always finish higher. the jobs and payroll diminished somewhat, it feels like a bit of a snooze and i just wonder if that is the correct way to approach it. michael: i agree that the emphasis on the payrolls has declined. beenis because they have fairly consistent and there have not been any big surprises that have come out of the data. as michael mckee mentioned, there are a lot of other things that investors have their focus on, at the moment. the ecb meeting next week, the debt ceiling. jonat

let's get the details from michael mckee. michael: everybody, take your fingers off the trading button. you will not be trading or selling on this one. this is the boring janet yellen. her speech largely a recitation of the history of the financial crisis and regulatory failures and how things have improved since then. she praises the swift u.s. regulatory response to the great recession, particularly changes in liquidity and capital requirements that have made banks safer, she says. "the evidence shows that reforms since the crisis have made the financial system substantially safer." she says that is reflected in the credit default swap pricing. investors see the same sort of progress that he fancies. -- tha n the fed sees. there is a jamie dimon section because she pushes back on the idea that regulation has put a cap on lending in the u.s.. she she says there is a bit of an effect on less credit with the followers, but research confirms "sizable net benefits to economic growth from higher capital standards." he also pushes

. -- michael mckee. ael: take your fingers off the trading button, you won't be trading or selling on this one. this is the boring janet yellen. her speech largely a recitation of the history of the financial crisis and regulatory failures and how things have improved since then. she admits there is room for improvement in the volcker rule and other tweaks could be made to dodd-frank regulation, but in general, this is a speech about federal reserve and success in regulating the financial system since the crisis and not at all about the economy. >> mario draghi took this occasion not to deliver a policy message, not to signal what the ecb does or does not do next or when, he took this more as an occasion to talk about what the big challenges are globally. he is especily concerned about openness, he is concerned about protectionism. he is concerned about how to make multilateral cooperation sustainable, fair, equitable. when it comes to the currency, what you can take away is that either mario draghi is no

michael mckee will be back and michael purves will stick with us.y getting taken out to the woodshed in premarket, down by 12%. the typical move for them on earnings 6%. you had a loss of nine cents per share and the markets very unforgiving to a retailer that misses estimates, even for those like macy's, that topped estimates. if you have a bloomberg terminal, check out tv . interact with us directly, go to tv on the terminal. click onve a question, ask a guest a question and we will do so. this is bloomberg. ♪ is bloomberg daybreak. shares of social media plunged in premarket trading. the parent of snapchat reported growth that fell short of estimates and raises concerns that competition from facebook s potentialsnap' after it went public. david: thanks. when it went public, snap was the biggest tech ipo since they split but they have had a challenge with quarterly resorts yesterday -- results yesterday, where it missed. it has been growing hernandez fast as people got. we are joined -- growing but not as fast as people fought. stock has

joining us now from jackson hole is michael mckee.wk remains a what else does she have to say about the data? mike: the data at this point is telling a story that the economy is humming along as it has been. she's not particularly concerned that inflation hasn't been rising in recent months. she thinks it will get back to that. perhaps more slowly than she anticipated. at this point, she doesn't see any reason to change your forecast significantly at that september meeting. jon: the other thing that struck me was the complete absence of conviction that she has as to what's going to happen once they begin the process. how much does that complicate the monetary policy stance if they have no clue what the balance sheet unwind could mean ultimately for markets? mike: i think the broader fomc is less concerned. they feel they may get some affect out of it, but it has been telegraphed so widely, it shouldn't have a major impact. they can react on the other side of the policy lever by dialing back the number of rate increases they might do i

jonathan: joining us now with a very special interview from jackson hole, wyoming, michael mckee good morning. i'm here with glenn hubbard, the dean of the columbia business school. he was was the chair of the economic advisers, advice a lot of republican presidential candidates. you know washington very well. the topic of this meeting here fostering aole is dynamic economy. what does that mean to you? glenn: to me, that means getting productivity up. from a policy perspective is about tax reform and regulatory reform and those will come up in the hallway here if not on the main floor. michael: but that is the question. it's not about policy so much. honestly in tough times monetary policy is important, but this is really about -- michael: you and other conservative columnists it wrote get 3%nth that we can growth. what you think that? glenn: we can get much more greater -- much greater productivity growth if we have the right policy environment, tax or form, revelatory reform. we can also address lost hours worked with health care reform. but all of this includes policy action. you c

joining us now is michael mckee from jackson hole.till with us alessio de longis of oppenheimerfunds. inflation must mean central banks should do more. japan has specific problems, and you wonder if this is going far enough. >> there was a discussion about japan during the sessions. on a per capita basis, japan's gdp is doing just fine. they have a shrinking labor force, so their potential growth rate will be lower, the same problem we have but on a much greater scale. immigration tow any great extent. their overall growth rate is not good. when you divide the per capita people to output, they're doing ok. people wonder how can they have survived all this time with inflation so low, that is why. jonathan: i wonder why we are having such a narrow conversation around monetary policy. we used to go to this was national bank and interview him and talk about inflation so low and currency so strong, and then he would come outside and look around zero, switzerland is doing ok. japan is doing ok. why are we still having the same conversations

l: i michael mckee. jonathan ferro is off today.et: for 30 minutes dedicated to fixed income, this is "bloomberg real yield." ♪ gundlach saying the time to reduce risk is now. and he u.s. inflation numbers for fed chair janet yellen to chew on. where does that leave the central bank now? we start with a big issue. nerves gripping the market. >> the reach for yield is apparent in every asset class. >> we know the insatiable chase for yield continues. >> we should be watching for excesses or buoyancy to get to a tipping point. >> it should not surprise that this thirst for yield has gotten into the high-yield market stree. am i being compensated for the risk i'm taking on? >> you have to be buying credit somewhere whether it's high-yield or high-quality corporate in an effort to get some spread over that which they can earn in treasuries. as a consequence, you have a sort of natural buyer for it even if they have to hold their nose for it while they're doing it. >> there comes a point in most investment cycles where you have to start

michael mckee joins us with more on harvey's impact. how does the government pay for this? go into it, whicht to pay for complicates the techs are from issue to her tax reform is basically off the table right now. cuts.looking at tax it will be harder for republicans to justify tax cuts when it leads to higher deficits. you can look at g #btv 2846. every time we cut taxes i am massive amount, tax revenues go down, but they never cut spending at the same time. this will exacerbate that. the blue line is spending, and it will go higher. we do not have a good handle on the total damages yet. percent of gdp, it will make the budget deficit that above 3.5, could go percent of gdp. that is something that republicans, in the past, have sworn is a terrible thing. alix: with sandy, republicans said only if we get some offsetting cuts. is the same debate being talked about now? michael: it is, but it is not clear if republicans will come down on them. democrats were already saying we should do it as a clean bill and spend the money. republicans have to take a position on that. alix:

michael mckee is wearing denver broncos orange and blue. were00 and seven, they 7-9. st? michael: ben bernanke saying there was no problem out there, which he had to walk act very quickly. -- back great quickly. the fed and others had to supply additional liquidity and lower rates. to single out this path, what we learned and what are we doing going forward? economics?new micro disruptiveg back to economics of 2006? michael: i don't think anyone has come up with that. would people are doing is paying more attention to more thecators and epa i on evolution of the economy from the financial side. if the fed did not have good models that incorporated the financial markets. they are at least running it in there and looking at it as a determinant. francine: let's say inflation is higher than expected, to other central banks change their models? michael: no. people will change their models and you're out of a need to it this point. inflation is starting to go back , that would take some of the pressure off. the ecb is dependent on the inflation reading. they believe that inf

joining us now is michael mckee. great to have you on the show. i see this being talked about as an action list jackson hold. michael: the motivation is to not make news this time, for different reasons. the fed is setting in place its balance sheet reduction program and they telegraphed they are going to do it in september, so what does she add to that by talking about what the fed might do? if she brings up anything that puts the focus on rate increases , that overshadows what happens in february, and that concerns the markets. mario draghi, his last press conference, he said he will talk about qe in the autumn. it is not autumn yet. he does want to get ahead of the governing council, and how much can he say without them behind him? there is probably not going to be any news, but i say that with the possibility there could be a surprise. julie: even if there is not any news per se, the market has a way of reading into the comments even if there is nothing new. one about inflation? debate and some soul-searching going on at the fed over the subjec

also in contention -- loeyswith us is jan and michael mckee. the rhetoric is gary cohn didn't leave the white house despite pressure because he really wanted the fed job. is that some thing that is true? michael: we are all just speculating. none of the people that enter that survey knows. donald trumpwhy thinks the way he thinks. this is a wild card. he could easily come out and say he is renominated janet yellen. he has done conventional things when he has talked unconventionally. he has not attacked north korea. a lot of what his rhetoric is doesn't match the reality and if he wants low interest rates and the economy to keep going at a time that it has been going reasonably well, there's no reason he couldn't renominated her except for the rhetoric around it. one of the problems they are going to have is republicans on capitol hill know she has basically been a democrat and was appointed by a democrat and they would like their own person. there is a strong chance she is replaced, not necessarily by gary cohn, a democrat from wall street. and

michael mckee: it has and it hasn't.ed if they had not done anything? you take a look at the chart i #btvht along which is 8707. the white line is s&p 500 since they began qe. the yellow line is personal income from assets, dividends, etc., up 86% started at a higher level. the blue line is household median income. the average person is not getting a lot out of this. maybe we would have had a zero growth but were not having any spectacular growth from the growth in assets price valuation. the rigid do not need to spend morning -- spend more money than they are now as opposed to those living paycheck to paycheck and their incomes are not going up. alix: financial conditions, looser in the u.s. and tighter in europe. what does it mean for equity prices? key wilson: the dollar is to global equity, the most important currency for global trade. one of the biggest stimulus this year has been a weaker u.s. dollar and that was a planned exercise, go back to the g20 meeting in march of 2016. there was implicit agreement. alix: th

michael mckee none bad chemistry.ported directly to your bloomberg. this is bloomberg. ♪ ♪ francine: this is "bloomberg surveillance." coming up shortly, bloomberg daybreak: americas with jonathan ferro and alix steel. alix steel, i know you are focusing on gasoline prices. >> we will cover all aspects. we were also focus on houston. .e have the ceo of aep he has 100,000 customers still without power. we want to know why and how fast it will come on, and what the demand fall off will be at a commercial, industrial, and residential level. tom: thanks so much. withportant conversation brian moynahan. the 1990'shink about and 2000's when you had growth, you had 1.5% a year. it is hard to estimate, .5% to .75%, demand for houses, food, cars, everything, so we have a good solid economy. towill see this thing fight get between 2% and 3% as opposed to easily get there. tom: looking domestically at the realities of our demographics. the single best chart that ties into jeffrey denison's work -- dennis's work. down at the bott

michael mckee joining us from jackson hole.n brothers harriman. kos fromined by dino cls bank. how concerned is janet yellen at this point about dollar strength or weakness? >> i don't think it is a big issue. i don't see why it would be a big issue. the fed has taken historically a more laissez-faire attitude toward the currency. makerre less of a price when it comes to the currency. i don't think it is a big issue. that it is more talk of mind with mario draghi and the ecb. even there, not much. there are concerns about other issues, how is the economy performing and inflation. why is inflation so low? why are central banks struggling across the board to get inflation higher? that is such a turnaround from where we were not that long ago, for central banks getting inflation lower. it may not be on the panel at jackson hole, but it will be the subject of discussion. you can be sure of that. euro, on the issue of the from what you have observed of mario draghi, would he feel the pressure of the strong euro in jackson hole? >> h

michael mckee is an jackson hole for the kansas city fed's annual economic symposium.r george if this was premature. i think about inflation, i think about our mandate, which is price stability. relative to an economy that is growing at 2% and adding jobs, i think we are in a good place and we still have very accommodative monetary policy. that tells me we should begin have indicated, gradually begin to remove accommodation, as long as reports indicate we are moving in the right direction, which i think we are. indicate another rate increase this year. >> that was my last forecast. each time we put that together is a new opportunity to look at the data. we will be looking at the data and seeing whether that still makes sense. based on what i have seen today, i think there is still an opportunity to do that. of the year,end not necessarily by september. consider a breakdown a commitment. i think it is a general sense of where rates should go. >> is the phillips curve broken or is nehru lower than it has been in the past? what has happened to inflation? >> i don't know t

vonnie: that was kansas city fed president esther george speaking with michael mckee, who joins us nowom jackson hole and a beautiful day. michael, a little rainy yesterday. talk to me about what esther george said about raising this year. did you get the sense that even though she said she would continue to look at the data, is inflation safe where it is now stayingflation were saf where it is now, which you vote to go? if an implement continues to fall and she believes it is worth raising the fed funds rate also in case the markets are overvalued -- you can't call that, but it is worth having the fed on guard against those things. if she were voting, she would definitely be on that side. vonnie: let's have a quick look at a chart that shows u.s. and eurozone inflation. michael, and not anywhere near the target of 2% for either of the central banks. michael: that will come into play when people start analyzing what janet yellen and mario draghi had to say this week. they're both talking around the idea of what their specific monetary policies are going to be. with inflation that low,

yesterday, michael mckee spoke with a host of the symposium, esther george. she continues to favor another rate hike in this year if economic data holds up. >> i will be looking at the data in the next few weeks as we get ready for the september meeting and see whether that makes sense. based on what i have seen today, i think there is the opportunity to do that. michael: by the end of the year? >> i don't pick a meeting and i don't consider that rate path and those projections and commitment. i think it is a general sense of where rates should go. vonnie: the main event comes tomorrow when both fed chair janet yellen and ecb president mario draghi are due to speak. here is portfolio manager at janice henderson. he is a newport beach. nick, both may try to assiduously avoid talking monetary policy but they will not be able to completely avoid it. something the markets will interpret somehow? nick: that is exactly right. for the next year we are likely to face some sort of unintentional coordinated wind up of central bank balance sheets. the fed unwinding and

bloombergs michael mckee got a chance to sit down with cleveland's fed president who has been more one one of the more hawkish members but -- of the fomc. >> monetary policy is still accommodative. the gradual path of normalization is really a gradual path and my argument of why you want to stay on that path is because we are in a more normal economy. inflation is not yet at 2%, but what we learned is we have to move policy a little bit before we get to the goals or we are going to be behind or potentially left behind. we could find yourself in a bad spot. i would not say i may advocate of higher rates. i am a advocate of keeping on this more gradual normalization path where we are taking away some of the accommodations we needed to put in. ofhael: you think the risk higher inflation is greater than the risk of higher rates having a damping of act on the economy? loretta: there are a number of risks. the underlying momentum of the economy is very good. we have very strong labor markets and we have seen that overtime. seen the growth has been maintained at a little above 2% or so and a

l: i michael mckee. jonathan ferro is off today.edicated to fixed income, this is "bloomberg real yield." ♪ gundlach saying the time to reduce risk is now. and he u.s. inflation numbers for fed chair janet yellen to chew on. where does that leave the central bank now? we start with a big issue.

david: michael mckee was in jackson hole, wyoming for the fed policy symposium.spoke with the father of the so-called border adjustment tax and he asked if he thinks by doing tax reform, he could get to 3% growth. to 3% from just under 2% is a pretty big lift. it's hard to think of any realistic policy option that would make that big change. david: calling a pretty big lift. it is hugely important for the prospect for growth. when you look at models, do you see that happening? mr. golhar: we do. 2%y see trend growth in the instead. but what is the process to get this done? we have to do a debt limit hike sometime in the fall, and we published research saying we think you can see modest tax cuts by the end of q1 18, probably not some comprehensive tax reform. issues like him for sector spending, we've seen very little detail on that, so i'm not optimistic. david: you mentioned when lawmakers get back downtown in september, it's a lot of mandatory stuff, funding the government and make sure the lights stay on. it's raising the debt limit so the u.s. can pay bills.

david: michael mckee has an interview with esther george

anna: that was the cleveland fed president speaking to michael mckee.acron succeed where other european leaders have failed -- can macron succeed where other european leaders failed? this is bloomberg. ♪ matt: welcome back to "daybreak: europe." here. friday five -- 7:45 about one of bank of japan's governor -- bond yields its ever-present, the regular purchases. critics say the program is not sustainable and must be modified . in an interview, kuroda told kathleen hays that yield curve control is working well. control, welled introduced last september has been working quite well. rates inide interest europe and the united states, japanese interest rate has been .ery flat around 0% control has been well. second point, of course, the major channel of monetary easing lower interestgh rates. targety -- quantitative ago.troduced as qe4 years we are starting to reach adduce -- to reduce interest rates substantially. after four years of our experience, we found that it may be better to directly target long-term interest rates instead of excessunt purchase. st

bloomberg's michael mckee was there and he sat down for interviews with two top federal reserve officialskansas city fed president esther george. esther george: so when i think about inflation, i think about our mandate which is price stability. relative to an economy that is growing at 2% and adding jobs, i think we are in a pretty good place and we still have very accommodative monetary policies. that tells me we should begin to, as indicated, gradually removing that accommodation. as long as the outlook supports that we are moving in the right direction, and i think we are. michael: so that suggests you are in favor of yet another rate move this year? esther: that was my last forecast and each time we put those together is a new opportunity to look at the data. i will be looking at the data in the next few weeks as we get ready for the september meeting and see whether it makes sense. based on what i have seen today, i think there is still an opportunity to do that. michael: so by the end of the year? not necessarily in september? esther: no, not necessarily -- i do not pick a meeting

tom: michael mckee will be there. steve major.ghi say about european real rates about his speech, even if it is indirect comments on it? --idea key id for mr. for mr. draghi. my guess is that he would not say that much. going outside the council meetings could be quite disruptive. , ityear ago at jackson hole was more interesting that there was quite a bit of debate about central-bank balance sheets and the need to keep it large for a long amount of time. there were negative rates a year ago. honestly, i don't know, nobody knows what is going to come out of this jackson hole. there are supposed to be more structural debates, but i don't know if they will take the opportunity. francine: charles, do you worry about italian politics? going back to central banks, maybe we are underestimating something coming out of it? charles: i think that is the main concern. italy remains in focus point for political risk. there will be an election in the near future, probably may 2018. that is a real possibility the majority, that the parliament t

joining us now is matt winkler -- matt winkler and like them -- michael mckee. help wanted, the numbers of unfilled job openings, outstripping. how significant is that spread? >> it is unprecedented and we have never seen anything like it. the data goes back to 2000, almost two decades. we are seeing a lightning cap between openings in the jobs available. companies across the country are having difficulty finding the workers they need to fill the openings they have. >> what can be done about that? >> more immigrants would help. job training would help a lot. much more commitment to education. the kinds of workers that companies increasingly need are people with certain skill sets so those are the jobs they tuesday filled. it is coast-to-coast, southeast and southwest. collective you can't find workers, you will take lower quality workers and you will pay them less. >> that is what they would like you to think. the problem is it is not working textbooksnomic suggest. wishes he companies paying higher wages to fire workers but they are not doing it. a lot of diffe

julia: esther george speaking with michael mckee. from jacksonive hole. iting for speeches tomorrow from janet yellen. when we heard there from mr. g s. george is -- m she expects rates to rise again. michael: levy notes for the -- let me note for the record, for me i will stick with you two. tomorrow, everyone will be listening and we can't televise the speeches of janet yellen and mario draghi to see if they give hints to what future policy would be. generally, that has not been the way the conference is structured. it changed in 2010. we expect janet yellen and probably draghi will stick the academic and theoretical side of this. they will be in favor of stability and withdrawing stimulus without saying how or when. i would be surprised if yellen gave hints to another rate increase. she could, especially if she suggested there was something wrong when she speaks about financial stability with a level isasset prices, even if it just an oblique reference. wall street might take that as an implicit suggestion that the fed is considering another move this y

later this week, while we are live in jackson hole, we will kaplan.her and robert michael mckee will michael mckee will be on the ground and this is bloomberg. ♪ francine: this is "bloomberg surveillance" with francine and david. let's talk about china. a company abandoned plans to buy a loan to the plot. this is one example of china companies avoiding government scrutiny. gary shilling is with us. if you look at china, they bounds the act of controlling the out lows while taking control of reserves. what do they need to focus on in 2018? is ashilling: china top-down economy and when they are trying to control the currency and capital outflows in the currency reserves, is a very difficult problem. if they allow free money to flow out for one thing, president xi once control on -- wants control on that. if the money does flow out freely, that means they are in effect, they are buying dollars and selling and the central bank has to buy them. it floods the money with currency into the economy and they end up with a severe problems. david: gary, we will come back in a moment. another lau

>> looking for to your coverage of that event, michael mckee is bloomberg's international economic andent. businessweek's josh green is up next with more on steve bannon. this is bloomberg. ♪ ♪ >> what is next for president trump's policy agenda after the oust of steve bannon? now back in charge of breitbart news. if the republican party gets behind the president on his plan and not theirs, it will all be sweetness and light, one big happy family. josh green and author of the ,ewest book " devil's bargain steve bannon and discussion of the presidency" discusses bannon's next move after the white house. >> he is outside, he is back to his old tricks at breitbart news which is trying to influence public policy from this internet platform that has an enormous influence. not just among voters but a core contingent of republicans in congress. >> what damage to the party could an untethered than in be outside of the white house -- bannon be outside of the white house? >> he could cause all sorts of headaches tonight. benin believes -- steve bannon believe that trump was elected because of a

fedaad: the cleveland president speaking to michael mckee and jackson hole.>> uber has a new ceo. they tell us his name is dara khosrowshahi. he is expedia's ceo. expedia has no comment. you want to tell your own people first before you tell the world am a but he is a dark horse candidate. they had talked to meg whitman and jeffrey immelt, but this is a dark horse candidate that replaces the scandal-driven drama of uber's former ceo travis kalanick, so the question guyhether he is the right for the job and will he lead uber to where they need to go. we focus on market reaction out of jackson hole. we talked to one of our favorite guests. mario draghi, janet yellen, and governor kuroda, and commonwealth bank of australia could we talk about that and more, next. ♪ ♪ >> it is almost 11:00 in hong kong. >> we are in the middle of the asian trading day. this is "bloomberg markets: asia." ♪ >> asian markets mixed. hong kong trading at a two-year high. surges.asoline vital parts of the gas and oil industry shutdown. angie: jackson hole confirms central banks on dive

and we will talk to robert michael mckee headed out to jackson hole later this week.: this is "bloomberg surveillance." i am francine lacqua in london. david gura is in new york. let's talk commodities. the hp billiton is in talks with buyers of its potential shale assets. energymes after a french giant also took down expensive shale. joining us now is bloomberg's chief energy correspondent, job the abbas -- javier blas. what did we find out about bhp billiton, after months of skirmishes with -- javier: they like their decision on short u.s. shale operation. this was a condition that was asked of bhp billiton. when elliott firms first hp billiton, the reaction of management of the company -- approached bhp billiton, the reaction of the management of the company was no. that they are not just a miner, they are diversified commodities company. today, with little expedition, bhp billiton announced those assets are for sale. i think one of the positives today has been the sale and that everyone likes it. whethertion is investors will like it or not. david: what will you s

michael mckee sat down with cleveland fed president loretta mester, who gave us her take on the pathal bank. >> monetary policy is still accommodative. the gradual path of normalization is really a gradual path. my argument of why we want to stay on that gradual path is we are in a more normal economy. inflation is not yet 2%. we have to move policy a little before we get to the goals, or else we are going to be potentially behind. there's some risk that you could find yourself in a bad spot. i wouldn't say i'm an advocate of higher rates. i am an advocate of keeping us on the normalization path. think the risk of higher inflation is greater than the risk of higher rates having a dampening effect on the economy. >> i think the underlying momentum of the economy on the real side is very good. we have strong labor markets. we've seen that over time. we've also seen that growth has been maintained at a little above 2% or so. i think that is very important. we have had a lot of shocks to this economy. the economy has proven to be resilient. inflation has not gone to our 2% goal. we had a

. >> i should point out to your point, michael mckee had this point. it is pretty call.g slowdown, they have had a recession. to your point earlier is when you wind up having a slowdown, that is the first thing that goes into your budget. sorrell's payrtin package might come up again? happy.board is very doing very well. you can ask him later today. you think they will talk about the pay package? later onl also join us the hour. this is bloomberg. ♪ mark: futures near session lows up by a third on the doubt. gains of almost 1% of the s&p 500. groups trading lower today. switching of the board on the bond market, those speeches that later on the week. basis points, yields on treasuries, 218 at the moment. the dollar on the back of the euro. by about one third of 1%. manufacturing data coming in a lot further than expected. the euro a lot stronger as well. >> thank you. president trump is threatening a government shutdown if needed to get congress to pay for a border wall of mexico. the president spoke in a rally last night in arizona. he passed some sort of spending to ke

everng us now is international economic and policy correspondent, michael mckee.pi. it's the problem with prices overall. analysts expect consumer prices went up because they have been going down for so long and a lot of it is driven by energy prices which have risen. it's not just energy. look at this chart of a random selection of things out of the cpi report. apparel,liances, boys used cars and trucks, moving and storage, cell phone services, everything has been going down. there is no particular reason for that. dropped last month. why do we see these things going down instead of going up? that is the puzzle for policymakers. alix: how does bill dudley address this in seven minutes i don't mark michael: know that he has a good answer for it. the fed still believes as a group that there is a one off affect in place. we will see prices turnaround, they will rise at some point soon. bill dudley make you to that if asked about it. the fed has to figure out why this is happening. if it doesn't turn around, what do they need to change? david: there is a fine line be

the north carolina, dan forest, the lieutenant-governor the rhode island, dan mckee, the former governor the of delaware, michaelames florio, maryland, martin o'malley, and the former governor of the pennsylvania and our great city of philadelphia, edwin rendell. thank you for speaking as independence hall. [ applause ] >> i'm also pleased to recognize congressman kyle wear ritty for join s us and members of the city council of philadelphia, mark squil will, lessry russell wednesdayer and is her relevant parker. thank you. [ applause ] >> we are joined by our great partner, the superintendent national historical park, cynthia mcleod. it is such a privilege which the architect of this great landmark new building robert a. stern and his associates join us. we're delighted you came. [ applause ] >> and we are also joined by the founder of intech construction who built this museum on time and on budget, will schwartz a new member of the board of the museum of the american revolution. we have guests from many places and we are -- we are so honored that leaders of museums and cultural institutions from across philadel

he ended up helping one of the mckee sons get into college and, he did some extraordinary things. brian: michaeloore runs the international african-american museum in charleston. what is it like? cate: well, it's being built right now. so they are raising funds for it but it sound phenomenal, and he's the perfect person to lead it. i recently met with him and asked him what it was like to walk through the streets of charleston knowing your great-great-grandfather was enslaved in the city. it's surreal, but it's an honor to keep smalls' memory alive. michael and his mother have done a great job of preserving smalls' legacy. his mother created a traveling exhibit. they are very concerned with protecting smalls' name and reputation and getting his story out there. brian: the chair of the university of texas history department, back in 2012, was marvin delaney. here he is talking about another period right after the civil war and i want you to expound on this. [video clip] mr. delaney: the general consensus in the early 20th century, almost up to the 1960's, was that reconstruction was one of the wo