candidates significantly for future generations and earlier i spoke to the president of queens college cambridge governments now should be fixing the roof instead of creating more holes. the us has the privilege of being — the us has the privilege of being the issue of the reserve currency— being the issue of the reserve currency and providing the deepest capital markets and other— deepest capital markets and other countries outsource their savings — other countries outsource their savings to _ other countries outsource their savings to the us so the us has a much — savings to the us so the us has a much longer runway for fiscal irresponsibility than other countries. but all economists agree — countries. but all economists agree there a limit to that. both— agree there a limit to that. both candidates right now are not any— both candidates right now are not any fiscal consolidation. what — not any fiscal consolidation. what they are promising is higher— what they are promising is higher deficit and higher debt, but once — higher deficit and higher debt, but once they get into the office _ but on

joining us to discuss is mohamed el-erian of queens college, cambridge.t yesterday morning, 8:30 eastern time, cpi drops, we were looking for you and you were not here. what is your response to that data? at the moment the market is gravitating to paying more attention to levels. the federal reserve seems more gripped by the current trend that encouraged by it. where you focused on? mohamed: sorry i was not with you yesterday, i was on the road. what i am focusing on was summed up really well by john authers of bloomberg opinion. today he had three messages. one is the fall in inflation is stalling. two, if you look at the components, they suggest it will continue to stall. three, if you look at the work being done in different groups of economists within the fed. they confirm the group got a sleep percent inflation rate. i think the equilibrium inflation rate is between 2.5% and 3%. if you continue to target to percent you will have difficult choices and that is what is facing the fed right now. jonathan: you think they are slowly realizing they are not

mohamed el-erian of queens college cambridge.was really glad you did not ask me about that this time around. jonathan: maybe a space of the federal reserve? lisa: 2026. you think this is -- i wonder with the mandate is for the person. annmarie: jay powell will survive his term but he is not going to get -- jonathan: not based on the last 24 hours. an update on stories elsewhere with dani burger. dani: he rapidly going brush fire in the los angeles area is burning out of control. the mountain fire has destroyed homes and triggered evacuations northwest of malibu. governor newsom declared a state of emergency in the ventura county. the mountain fire is one of a handful of blazes that sparked in california this week after the uptake of seasonal santa ana winds. shares of x media are rising nearly 4% in the premarket. better than his 50 growth bookings in the third quarter. customers book the total of 97 million nights on expedia's travel websites. it raises guid -- guidance. the chief financial officer will step down after his succe

joining us now is mohamed el-erian of queens college cambridge. we have a lot to work through.redefine the outlook from your perspective? mohamed: in a major way . this is not just a big win for trump. not just a big win for republicans. this is the emergence of a new power structure in the united states. the markets are reacting in an incredibly rational fashion. if you look at how the markets have treated the last few months, they have done much better than political scientists in terms of predicting what could happen and then reacting to what has happened. jonathan: i would echo that. before we even saw any real clarity in the vote this move started at 730 eastern time -- 7:30 eastern time yesterday evening. equities up, small caps outperform. let's separate this from asset class to asset class. we will sit on fixed income for a moment. we are higher by 20 basis points. do you see that is a move off the back of a better outlook for growth, higher inflation, a recalibration of interest rates relative to what we thought was going to happen? maybe they have to stay where they a

mohamed el-erian of queens college cambridge. overcame the city fed president thomas koenig. we will see you later on this evening for special coverage of election night 2024 with equity futures on the s&p 500 firmer by 2/10 of 1%. that does it for us. thank you for choosing bloomberg tv. this was bloomberg surveillance. ♪ ♪ ♪ with so much great entertainment out there... wouldn't it be easier if you could find what you want, all in one place? my favorites. get xfinity streamsaver with netflix, apple tv+, and peacock included, for only $15 a month. dad: hey boss. you okay? son: i said i'm fine. ♪ dad: you can talk to me. son: it's been really, really hard for me. matt: today is the day. 30 minutes until the start of cash trading on this election day. katie: "bloomberg open interest" starts right now. ♪ sonali: today is the day. election day is finally here. harris and trump and one of the most dramatic presidential campaigns in history is now down to the voter to decide the winner. matt: from marke

mohamed el-erian of queens college cambridge on the latest in the u.s. and beyond.pe later this morning, catching up with an ecb governor councilmember in 15 minutes. with an update on stories elsewhere, yahaira jacquez. yahaira: large parts of the pacific northwest are without power after a major storm moved through northern california and washington. a bond cycle killed two people and led to widespread flooding and rock slides. a flood watch is in effect for areas north of san francisco with dozens of lights -- flights canceled. conditions are expected to continue with another six to 12 inches of rainfall expected. meanwhile, u.s. securities and exchange commission chair gary -- gensler plans to step down. president-elect trump plaintiff -- they're into fire gensler. he has not chosen a replacement for the position. baseball's biggest stars have been crowned, aaron judge and shohei ohtani were awarded mdp once again. it is otani's third m.v.p. in four years after he became the first 50-50 player in history and help the dodgers win the world series. he is now the 1