yes, i'm joined by atlanta fed president raphael bostic president bostic, thank you for joining us thisll of the metrics that we talked about came in hotter than expected. and especially with the fed, with university of michigan inflation expectations coming in at 4.6% for the next year. does all of this cause you any concern? >> so, let me just say, there are two things to say on this. first, we expected a lot of volatility in the inflation in the next couple of months. we know that last year it was not very strong in terms of inflation. so, as we come out of the pandemic and into a recovery mode, we know that the numbers are just going large that's there we also know with all of the relief money in family's hands we've got pent-up demand putting pressure on prices and upward inflation that is putting prices as we go through the transition what is going to be temporary and transitory effects, and which ones are more structural that will be enduring? i think it's hard to know that for sure in the next couple of months, as we start to sort things out, as people figure out how they're goi

michael mckee is speaking to atlanta fed president raphael bostic. pres. stic: really good to see you. i'm looking forward to when i can actually be sitting right next year and having this conversation. michael: the european central bank said today in its financial stability review it sees remarkable exuberance in markets these days, which obviously takes us old guys back to alan greenspan's irrational exuberance. we remember what happened a few years after that. do you see any parallels to today's markets, to asset prices? pres. bostic: i do not spend a lot of time worrying about asset prices, but i will say there is a lot of drive that is driven by profits and profitability. we have seen this through the pandemic period. the markets are speaking for themselves. there is a lot of reason to be optimistic about how the economy will progress and we will have to see whether the bed that investors are making gets worn out for the next several months. michael: the ecb went on to say that spillover from equity pricing could be substantial. you take into account t

raphael bostic weighed in on the volatility, expecting more along the way. rafael: i am expecting a lot of volatility. in the last several months, we have had data points that have not met up with expectations. that is to be expected. we are going to have to do extra work. taylor: george, are you expecting volatility? how do you manage volatility? george: you have to expect volatility because your year-over-year comparison is low, but your baseline effects will be crazy. as we resume the normalcy, you are going to have on venus in the data. you are definitely seeing some pumping this in the data. overall, you are seeing positive growth, positive inflation. employment took a hit, but it is going the right way. that is what we are going to have to see. it is not each specific issue, but the larger picture and the duration of the direction, which we think is positive. taylor: gershon, one thing that stood out to me is we had a chart showing correlations of equities to bonds. they are pretty high. how do you think about bonds in this inflationary environment? is

this morning, raphael bostic did talk about it, saying he thought it was transitory, that this is nothe time to raise rates. so maybe be careful what you wish for. you will get the same word over and over again. alix: no kidding. thanks a lot. if you want to listen to the entire speech, you can go to live at&t confirming a deal with discovery to spin off its media operations. the new entertainment company will be created with assets ranging from cnn to hbo, food network and animal planet, a huge deal brokered yesterday. ed hammond joins us now. you broke the deal yesterday. it is official today. what are the questions you have? ed: they entered a lot of them this morning, and terms of who would be running the company, but to come position of the board looks like, and how it is going to be structured in terms of the share ownership. we know it will be roughly 70% at&t shareholders, 29% discovery shareholders, and at&t gets this special cash payout from the deal. the questions going forward, obviously regulatory is going to be one here. what does the fcc say about this in terms of

kathleen: but failed bostick -- raphael bostic speaking today. people spending more money has been a lot faster than the response in supply and that's why we are seeing price pressures building. this will not be enduring. jim bullard saying it will be temporary and some of it will feed through to inflation expectations. let's look at the chart to get to the other side of the story. if you look at the bloomberg chart, what you will see is the white line showing the pce year-over-year, key measure now up, clearly rising. the important line to focus on is the yellow line, market breakevens. it is clearly moving higher. it is the blue line. university of michigan has been doing a survey for decades. they ask people about inflation expectations. you are seeing a big jump in expectations for inflation five years out. that number is up to 3.1% from 2.1%. a lot of fed officials, that's one of their most favorite measures of expectations. it has moved higher, is moving higher. this team of fed officials would say, of course they are up because prices are

tomorrow we will speak to a-rod and kathy wood, raphael bostic and more.s is bloomberg. ♪ amanda: welcome to bloomberg markets, i meddling. matt: i'm matt miller. here are the top stories we are following for you. the united states biggest fuel system, the colonial pipeline, is experiencing network issues, leaving customers unable to access yule shipments -- fuel shipments. plus, u.s. housing stars -- trail on supply chain constraints. we will discuss with daniel hale of realtor.com. and, the battle for streaming content. we talked to the ceo of the company behind projects on netflix and hulu about the future of media. amanda? amanda: matt, a bit of a mixed picture on equity markets today. some groups of the s&p 500 are showing decidedly mixed agenda here. you can see is basically flat. health care consumer discretionary are the groups letting us hire. and, similarly energy, one of the biggest decliners today, not the biggest of the s&p 500, had been a tough gator yesterday. energy is one to watch. of course, watching the price of west texas shooting hire.