julia: mike mckee joins us from annapolis with more highlights from his exclusive interview.he decoding of the word "further" here -- the tax overhaul. get a specific't number on how much they've marked up there forecast -- forecast. the fed will continue on the right path they've already announced but they aren't ready to raise the number of rates this year. heard from the philadelphia fed president who suggested he is still in favor of two rate hikes rather than the three that is the consensus forecast. the fed not changing it statement. go, more months of data to that's where we are at the moment. fed presidentlis neel kashkari isn't exactly a consensus member of the fed. is that right? michael: he certainly wasn't last year. he voted against all of the rate increases. he suggested today he's more willing to consider the idea buildingation may be in the economy and the fed might have to do something about it. he wants to see the data. i did ask him whether or not a breakout of inflation in the fed response would bother wall street enough that the fed would have to step in

joining us from boston is jurrien timmer, from fidelity, and mike mckee from bloomberg. t the stage, mike. what are we watching? mike: we will watch of the cpi core index and see if they can repeat what it did last month. i brought a chart of what this is all about. core, it picked up 1/10 to where it was the month before and everybody went crazy and said inflation. you could see what was happening in 2016, we are way off that mark, today analysts expected to go down for a host of reasons. we are more likely to see a fallback. it is not clear why this is such a big deal. david: something else must be going on, 1/10 of a point on the cpi cannot be causing so much, maybe the markets are inclined in that direction already. lasten: inflation went mia year and whether it got amazon permanently, where whether it was a series of one-off situations come i think that is what we will find an answer to and our sense is probably the inflation will come back towards 2%, best case scenario for the fed. the cpi itself is noisy as an indicator and i think that the fed uses the core -- fo

alix: mike mckee, who is hiring? ted out of the report was, there is a lot of talk of retailers losing jobs, going into the holiday season, and in december, retailers lost 26,000 jobs, but hired about half back in january. transportation and warehousing, where you find amazon workers, up by 11,000. the career and message -- the categorynd messenger also higher. we are seeing people move into the internet kind of jobs. the next thing for this administration is infrastructure. took a look at construction hiring. the construction unemployment rate is 7.3%. there are still some people to hire, but it has been coming down rapidly. if you are going to do a big construction/infrastructure project, you have to have workers. it would be interesting to see where they can find it. alix: what about benchmark revisions? what is the trend we need to be looking at? departmente labor estimates certain things like, the people are in the population and how many jobs. they go back when they get accurate data and benchmark for the year.

shery: mike, thank you. michael mckee, bloomberg's international and foreign policy correspondent in washington. david: we want to welcome one of the lawmakers who was asking questions of mr. powell, congressman james french hill. was more confident in inflation and you and your questioning were more emphatic, calling it a fee that actually takes from the paychecks of americans. did you come out of these hearings more confident that inflation will remain under control? congressman hill: growth is not incompatible with low inflation. this is one of the economic myths. i think the fed should stay andsed on stable prices, their 2% target is certainly adequate. chairmanconfidence powell stay focused on that because inflation is the biggest thief for working people across the world. david: as we create more goods and pay people more money, the thing that people will keep us from inflation is increased productivity. how confident are you that we will get that the greek of increased productivity. let's be honest, over the last 2

he spoke exclusively to mike mckee. >> some people are out there saying we should raise our inflation i am not in favor. i want us to hit our 2% inflation target. if we can hit the target, that will be a positive the right of them -- positive development and give us room to respond to future downturn. manus: that is a man that will not be put off by single pieces of data. patrick harker weighing in on what he expects from 2018. patrick harker: based on the relatively strong economy, but with the continued stubbornness of inflation, i have penciled in two 25 basis point rate hikes for this year. thes: michael metcalf is global head of microstrategy at state street global markets. michael, good morning. lots of various opinions, not to get distracted. neel kashkari says we get far the up andted on down. i want to know your interpretation on this. further gradual increases. further does not mean faster. it just means get ready for more of the same in 2019, more of the same in 2020. resetting our expectations agenda rather than this year. but for the forward years. further to state street

he spoke to bloomberg's mike mckee. theome say we should raise inflation target. i'm not in favor of raising it up 2% to 3%. i want us to hit the 2% inflation target. if we get hit the 2% inflation target, that would be a positive development in that will give us a little more room to respond to future downturns. neel kashkari at joining -- on bloomberg. good to have you with us here today. let's talk about what we heard from the fed. watching the market reaction it seemed as if at first the market took it at face value, positive assessment of the u.s. economy, and the second order started to hit home and market started to stress at that hikes. did anything move for you, did the dial get moved by these minutes yesterday? >> [indiscernible] in terms of economic growth and , we are seeing a regime shift. this can last two or three months and during that time, we could have some concern about inflation, especially the federal reserve in terms of communication and interest hikes. arounds the regime shift higher inflation dynamics or the leadership of the central bank?

mike: what about people without papers? lisa: those are a lot of good questions we're not going to be answer for a while. thank you to michael mckee's get than once making headlines. taylor riggs is here. taylor: mitt romney has made it official, he is running for the senate from utah. his goal is to serve the people of utah and bring values to washington. he's running for the seat held by orin who is retiring. according to an arrest report, a former student invest to the deadly school shooting in florida. in the schoolas for just six minutes. he's accused of killing 17 people. people turned00 out for the candlelight vigil. the names of the victim were red. at one point, the crowd chanted "no more guns." japan hasminister of continue him to running the bank of japan for another five years. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. i am taylor riggs. david? david: no deal. qualcomm has injected broadcom's latest offer. it is materially undervaluing the company. join us is bloomberg .ntelligence analyst welcome. welcome back. this is an ongoing saw th