Powell Sees Tariff Impact as Transitory, Trump Says Fed Should Cut Rates On today's podcast:

Bloomberg Audio Studios, podcasts, radio news. 0:00:10.000 --> 0:00:13.160 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.200 --> 0:00:16.040 are the stories we're following today. Karen, we begin with 0:00:16.160 --> 0:00:16.840 the T word. 0:00:17.040 --> 0:00:21.160 In fact, we begin with two T words, tariffs and transitory. Yes, 0:00:21.360 --> 0:00:25.160 FED Chair J Powell brought back the infamous transitory word 0:00:25.680 --> 0:00:30.360 after leaving interest rates unchanged. Powell downplayed mounting growth concerns 0:00:30.400 --> 0:00:32.520 and the price hits that could be on the way 0:00:32.520 --> 0:00:34.960 from President Donald Trump's aggressive trade war. 0:00:35.840 --> 0:00:38.120 It can be the case that it's appropriate sometimes to 0:00:38.200 --> 0:00:41.360 look through inflation if it's going to go away quickly 0:00:41.400 --> 0:00:45.040 without action by US, if it's transitory, and that can 0:00:45.120 --> 0:00:49.360 be the case in the case of tariff inflation. I 0:00:49.400 --> 0:00:54.400 think that would depend on the tariff inflation moving through 0:00:54.400 --> 0:00:57.320 fairly quickly, and would depend critically as well on inflation 0:00:57.400 --> 0:00:59.400 expectations being well anchored. 0:01:00.040 --> 0:01:03.120 Palace comments came along with media and forecasts showing two 0:01:03.200 --> 0:01:04.679 interest straight cuts this year. 0:01:05.240 --> 0:01:08.320 Well Nathan Powell's stance come to financial markets. The S 0:01:08.400 --> 0:01:10.959 and P five hundred client more than one percent for 0:01:11.000 --> 0:01:13.920 the biggest rally for any FED day since July. On 0:01:13.959 --> 0:01:16.680 a special edition on Bloomberg Surveillance we got this FED 0:01:16.760 --> 0:01:19.920 reaction from Bloomberg Intelligence rate analyst Irah Jersey. 0:01:20.319 --> 0:01:23.000 The market certainly took him as dubvish. He wasn't hawkish 0:01:23.080 --> 0:01:25.679 by any stretch of the imagination. The one thing that 0:01:25.800 --> 0:01:28.520 I think is interesting is the dop plot. And you know, 0:01:28.560 --> 0:01:31.160 we thought that maybe the median dot would move down 0:01:31.200 --> 0:01:33.400 a little bit. It didn't. It stayed the same. So 0:01:33.480 --> 0:01:35.720 this is pretty unusual for the rate market to rally 0:01:35.760 --> 0:01:38.039 like it did when the FED didn't move the dots. 0:01:38.600 --> 0:01:41.959 That's Ira Jersey, a Bloomberg Intelligence On that Surveillance special, 0:01:42.000 --> 0:01:45.160 we also heard from Bloomberg opinion columnist and former New 0:01:45.200 --> 0:01:46.759 York Fan president Bill Dudley. 0:01:47.160 --> 0:01:49.000 Paul then came in, and I think Gay gave a 0:01:49.040 --> 0:01:51.600 pretty dubbish performance in the sense that, you know, we 0:01:51.680 --> 0:01:54.120 got this, We're in a good place, we can afford 0:01:54.160 --> 0:01:56.960 to wait, we'll see how it goes, We're going to 0:01:56.960 --> 0:01:57.880 get the job done. 0:01:58.520 --> 0:02:00.000 So he I think was. 0:02:00.080 --> 0:02:04.200 Pretty reassuring to people that this was all quite manageable. 0:02:04.520 --> 0:02:06.800 And that was former New York Fed President Bill Dudley 0:02:06.840 --> 0:02:10.120 on a special edition of Bloomberg Surveillance following the FED decision. 0:02:10.360 --> 0:02:13.600 Here the entire special on the Bloomberg Surveillance podcast feed 0:02:13.639 --> 0:02:16.440 or watch it on the Bloomberg podcast page on YouTube. 0:02:16.560 --> 0:02:19.160 And Karen is Fed officials and investors way the Fed's 0:02:19.280 --> 0:02:22.919 next move. President Donald Trump says the Central Bank should 0:02:23.000 --> 0:02:26.080 cut In a post on Truth Social the President said quote, 0:02:26.080 --> 0:02:28.720 the FED would be much better off cutting rates as 0:02:28.840 --> 0:02:31.920 US tariffs start to transition their way into the economy. 0:02:31.960 --> 0:02:34.240 The Fed's next meeting May seventh. 0:02:34.720 --> 0:02:36.680 Well, Nathan, now, let's get to the latest on the 0:02:36.680 --> 0:02:40.920 war in Ukraine. Ukrainian President Vladimir Zlenski says he's agreed 0:02:40.919 --> 0:02:43.959 to stop hitting energy assets as a first step toward 0:02:44.000 --> 0:02:47.080 a cease fire with Russia. Zelenski spoke with President Trump 0:02:47.160 --> 0:02:50.320 on the phone yesterday. Christopher Smart is a former special 0:02:50.360 --> 0:02:53.079 assistant to the President under the Obama administration. 0:02:53.480 --> 0:02:57.280 Both Russia and Ukraine appear to be ratcheting down their 0:02:57.400 --> 0:03:00.640 level of hostilities one notch in terms of a ceasefire 0:03:00.680 --> 0:03:04.440 that avoids energy targets, but there's a long way to 0:03:04.480 --> 0:03:07.679 go to get the two parties to agree to any 0:03:07.760 --> 0:03:08.919 kind of a longer term solution. 0:03:09.400 --> 0:03:11.720 Christopher Smart, now with the r Growth Group, was a 0:03:11.720 --> 0:03:14.720 guest on Bloomberg's Balance of Power, a White House statement 0:03:14.720 --> 0:03:17.360 says President Trump agreed to work with Zelenski on finding 0:03:17.360 --> 0:03:20.799 additional air defenses for Ukraine. Trump also offered to help 0:03:20.880 --> 0:03:24.919 run Ukraine's electricity and nuclear facilities, saying American ownership would 0:03:24.960 --> 0:03:28.079 be the best protection for that infrastructure and Karen. 0:03:28.120 --> 0:03:30.720 President Trump's also talking about meeting face to face with 0:03:30.880 --> 0:03:31.880 China's president. 0:03:31.919 --> 0:03:34.240 He says he wouldn't mind a summit in June with 0:03:34.360 --> 0:03:35.080 She Jinping. 0:03:35.520 --> 0:03:38.200 The President discussed trade talks with China in an interview 0:03:38.200 --> 0:03:39.240 with Fox News this week. 0:03:39.600 --> 0:03:42.760 We have our own discussions with President Gi of China, 0:03:42.760 --> 0:03:45.120 and he wants to get along also, and he's looking 0:03:45.120 --> 0:03:46.520 to get along, and we're looking to get. 0:03:46.440 --> 0:03:48.240 Along with him, and we will. 0:03:48.280 --> 0:03:50.120 We have a problem with trade where we have a 0:03:50.200 --> 0:03:51.720 very big imbalance with China. 0:03:51.880 --> 0:03:54.240 President Trump spoke with Fox News host Laura Ingram. The 0:03:54.280 --> 0:03:56.360 Wall Street Journal reported this week that the US and 0:03:56.440 --> 0:03:59.680 China are discussing a birthday summit between Presidents Trump and 0:03:59.720 --> 0:04:02.880 she Both leaders were born in June Well Nathan. 0:04:02.880 --> 0:04:06.520 This afternoon, President Trump is scheduled to sign an executive 0:04:06.640 --> 0:04:07.920 order at the White House. 0:04:07.960 --> 0:04:09.120 Sources Tol Bloomberg. 0:04:09.200 --> 0:04:13.760 The President will formally direct Education Secretary Linda McMahon to 0:04:13.840 --> 0:04:18.000 dismantle her department and quote return education authority to the States. 0:04:18.360 --> 0:04:21.000 Josh Cowan with the Education Law Center says the Trump 0:04:21.040 --> 0:04:24.279 administration has already been hollowing out the agency. 0:04:24.880 --> 0:04:29.400 Trump Secretary Linda McMahon, the musk Doge operation have. 0:04:29.680 --> 0:04:31.960 Sort of hollowed out the department on their own. 0:04:32.400 --> 0:04:35.159 There's some litiation behind that, sort of questioning whether that 0:04:35.240 --> 0:04:38.120 itself is even legal. But what's certainly true is that 0:04:38.360 --> 0:04:40.920 thousands of department staff have been laid off at this point, 0:04:40.960 --> 0:04:43.080 even preceding the order, and that's going to have the 0:04:43.120 --> 0:04:45.839 real material effect on kids and families across the country. 0:04:46.160 --> 0:04:49.240 Josh Cowen with the Education Law Center the Education Department 0:04:49.360 --> 0:04:52.920 was created by Congress and would technically need lawmaker's approval 0:04:53.000 --> 0:04:54.039 to shut down ky. 0:04:54.080 --> 0:04:57.240 The White House is also doubling down on verbal attacks 0:04:57.279 --> 0:05:00.599 on federal judges, even after the Chief Justice of the 0:05:00.640 --> 0:05:03.280 Supreme Court issued a rebuke Bloomberg. 0:05:03.360 --> 0:05:05.600 Zamy Morris has the latest done that from Washington. 0:05:05.800 --> 0:05:08.800 White House Press Secretary Caroline Levitt says President Trump is 0:05:08.800 --> 0:05:10.960 now calling on the Supreme Court to take action. 0:05:11.240 --> 0:05:13.359 The President has made it clear that he believes this 0:05:13.520 --> 0:05:15.920 judge in this case should be impeached. And he has 0:05:15.960 --> 0:05:18.120 also made it clear that he has great respect for 0:05:18.200 --> 0:05:21.599 the Chief Justice John Roberts, and it's incumbent upon the 0:05:21.640 --> 0:05:24.200 Supreme Court to reign in these activist judges. 0:05:24.320 --> 0:05:27.560 Levitt says the judge in question was appointed by President Obama. 0:05:27.640 --> 0:05:30.520 He was actually appointed by President George W. Bush and 0:05:30.560 --> 0:05:33.600 then promoted by Obama. Levitt says the White House does 0:05:33.640 --> 0:05:37.039 not have any flights planned specifically, but the administration will 0:05:37.040 --> 0:05:41.640 continue with mass deportations in Washington. Amy Morris, Bloomberg Radio. 0:05:41.520 --> 0:05:43.320 All right, Amy, thank you. We want to turn back 0:05:43.360 --> 0:05:46.840 to the markets now, and futures are higher following yesterday's 0:05:46.880 --> 0:05:49.800 post fed rally. It's also getting a lift out of 0:05:49.839 --> 0:05:51.880 news from Nvidia and for the latest who we bring 0:05:51.880 --> 0:05:54.200 in Bloomberg's John Tucker, John, Good Morning, ed. 0:05:54.279 --> 0:05:54.800 Morning, Karen. 0:05:54.880 --> 0:05:59.080 Invidia reportedly plans to invest hundreds of billions of dollars 0:05:59.120 --> 0:06:02.760 in US made chips and electronics over the next four years. 0:06:03.080 --> 0:06:05.800 This according to the Financial Times, the chip giant will 0:06:05.800 --> 0:06:09.320 spend around half a trillion dollars. The paper, quoting CEO 0:06:09.400 --> 0:06:12.400 Jensen Wong, is saying in Nvidia can now manufacture its 0:06:12.480 --> 0:06:16.800 latest systems in the United States through suppliers like TSMC 0:06:16.920 --> 0:06:20.279 and fox Con where those companies operate US based factories, 0:06:20.520 --> 0:06:23.120 and this would mark a major step forward in supply 0:06:23.320 --> 0:06:26.960 chain resilience for Invidia. In Video this week hosted its 0:06:27.080 --> 0:06:30.680 GtC Developer Conference, where they said they ultimately planned a 0:06:30.680 --> 0:06:36.159 ship manufacturing on shore. It's already using tmsc's Arizona factory, 0:06:36.400 --> 0:06:38.760 and in Vidia shares right now among the most active 0:06:38.800 --> 0:06:41.560 pre market up one point four percent in New York. 0:06:41.600 --> 0:06:43.040 I'm John Tucker, Bloomberg Radio. 0:06:43.200 --> 0:06:43.960 Okay, John, Thanks. 0:06:44.000 --> 0:06:45.120 I also want to keep you up to data on 0:06:45.160 --> 0:06:48.240 the latest market reaction to the political turmoil in Turkey. 0:06:48.360 --> 0:06:50.960 This morning, the cost of borrowing the Turkish lira and 0:06:51.000 --> 0:06:53.880 the offshore market rose to its highest in two years. 0:06:54.200 --> 0:06:57.520 It's after Turkish authorities detained President wretch of type Erdwan's 0:06:57.520 --> 0:07:01.360 main political rival on corruption charges. After dropping almost nine 0:07:01.400 --> 0:07:05.240 percent yesterday, Turkey's main stock index is up more than 0:07:05.279 --> 0:07:06.719 two percent this morning. 0:07:07.440 --> 0:07:11.120 And Nathan, the latest World Happiness rankings are out and 0:07:11.160 --> 0:07:14.760 for the eighth straight here, Finland is the happiest nation 0:07:14.880 --> 0:07:18.200 on Earth. That's according to Oxford's Well Being Research Center. 0:07:18.480 --> 0:07:21.880 Other Nordic countries right at the top five Denmark, Eichland, Sweden, 0:07:21.920 --> 0:07:24.840 and the Netherlands. The US has dropped to its lowest 0:07:24.880 --> 0:07:28.240 place ever on the list, twenty fourth. This year's report 0:07:28.320 --> 0:07:31.200 says belief in the kindness of others is more closely 0:07:31.240 --> 0:07:37.840 tied to happiness than previously thought. Time now bur look 0:07:37.840 --> 0:07:39.560 at some of the other stories making news in New 0:07:39.640 --> 0:07:41.760 York and around the world, and for that we're joined 0:07:41.760 --> 0:07:44.560 by Bloomberg's Michael Barr Michael, good Morning. 0:07:44.320 --> 0:07:47.360 Good morning, Karen. Israel send It began a limited ground 0:07:47.360 --> 0:07:51.440 operation in Gaza, with troops retaking part of Gaza. Israeli 0:07:51.520 --> 0:07:55.120 officials are vowing further pressure unless a mass releases its 0:07:55.120 --> 0:07:58.800 fifty nine remaining hostages. The move comes after Israel end 0:07:58.840 --> 0:08:01.520 at the pause and fighting early this week with air 0:08:01.560 --> 0:08:05.160 strikes across Gaza that killed hundreds of people. Doctor Faraz 0:08:05.280 --> 0:08:10.080 Sidwa is a trauma surgeon volunteering at Gaza's Conunis Hospital. 0:08:10.480 --> 0:08:14.120 He says that malnutrition is a big concern. After Israel 0:08:14.120 --> 0:08:17.520 block humanitarian aid from coming into Gaza. 0:08:17.040 --> 0:08:19.800 People are coming in hungary, thirsty. There's no clean water 0:08:19.840 --> 0:08:22.200 anymore because Israel cut the water and electric supplies, so 0:08:22.280 --> 0:08:26.080 the desalination plants can't even work, and that leads to 0:08:26.120 --> 0:08:28.400 the problems with human health that you can imagine. Kids 0:08:28.400 --> 0:08:30.880 have gas r enteritis all the time. We actually had 0:08:30.880 --> 0:08:33.079 a woman's heart stop in the ICU because her gastro 0:08:33.120 --> 0:08:35.080 introritis was so bad that we couldn't keep up with 0:08:35.160 --> 0:08:36.439 the her fluid requirements. 0:08:36.600 --> 0:08:40.320 Meanwhile, protests were held in Israel yesterday over concerns that 0:08:40.440 --> 0:08:44.080 the air strikes will leave the remaining future of hostages uncertain. 0:08:44.600 --> 0:08:47.880 Taal Chaham was one of the freed hostages and spent 0:08:48.000 --> 0:08:51.360 roughly five hundred days in captivity. Chaham says at one 0:08:51.400 --> 0:08:54.040 point he was taken to a small tunnel and he 0:08:54.160 --> 0:08:55.840 shared that space with three others. 0:08:56.200 --> 0:08:59.800 We had four mattresses on the ground which we slept 0:08:59.800 --> 0:09:04.840 on and lived on, then one meter like empty space 0:09:05.640 --> 0:09:08.080 on the sand, and a hole in the ground which 0:09:08.240 --> 0:09:09.240 was our toilet. 0:09:09.600 --> 0:09:12.959 Shoham's wife and children were also kidnapped and were released 0:09:12.960 --> 0:09:16.560 from captivity. In November of twenty twenty three, severe weather 0:09:16.600 --> 0:09:20.480 hit the Chicago area. Roofs were ripped off buildings in Gary, Indiana, 0:09:20.640 --> 0:09:23.280 where several people had to be rescued, and a tornado 0:09:23.400 --> 0:09:26.320 was suspected to have formed. At least seven homes have 0:09:26.360 --> 0:09:29.280 been destroyed. Gary Mayor Eddie Melton, a lot. 0:09:29.160 --> 0:09:31.520 Of folks have been this place for the homes, so 0:09:31.559 --> 0:09:33.600 we're working with the Red Cross make sure that they 0:09:33.600 --> 0:09:36.760 receive the shelter, working with the Gary School Corporation because 0:09:36.800 --> 0:09:39.400 one of their schools that was significantly damaged as well. 0:09:39.520 --> 0:09:42.920 Mayor Milton also says some residents are without power. Finally, 0:09:42.960 --> 0:09:45.880 the University of California says it we'll stop requiring the 0:09:45.960 --> 0:09:50.120 use of diversity statements in hiring. Diversity statements ask people 0:09:50.160 --> 0:09:53.559 applying for jobs how they would contribute to campus diversity. 0:09:53.720 --> 0:09:57.400 The announcement comes as universities across the nation have face 0:09:57.480 --> 0:10:00.839 directives from the new Trump administration. Bubble news twenty four 0:10:00.880 --> 0:10:03.000 hours a day and whenever you want it with Bloomberg 0:10:03.040 --> 0:10:05.240 News Now, I'm Michael Barr. This is Bloomberg Karen. 0:10:05.480 --> 0:10:11.920 All right, Michael Barr, thank you time now for the 0:10:11.960 --> 0:10:14.880 Bloomberg Sports Update, brought to you by Tri State Audi. 0:10:14.960 --> 0:10:16.280 Here's John Stanshauer. 0:10:16.360 --> 0:10:17.440 John, good morning, Good. 0:10:17.320 --> 0:10:17.880 Morning, Karon. 0:10:17.920 --> 0:10:20.520 The next this season has struggled against good teams, have 0:10:20.640 --> 0:10:23.280 generally feasted on bad ones. The Spurs aren't very good 0:10:23.360 --> 0:10:26.280 under five hundred. They've lost their two best players, Victor 0:10:26.280 --> 0:10:29.400 Wembinyamo and Diaron Fox, the season ending injuries, and yet 0:10:29.440 --> 0:10:32.280 san Antonio dominated a twenty three to two run in 0:10:32.320 --> 0:10:34.679 the second quarter put them up by twenty seven at 0:10:34.679 --> 0:10:35.040 half time. 0:10:35.120 --> 0:10:36.079 Nick's got it down to eight. 0:10:36.160 --> 0:10:38.760 No closer, the Spurs one one twenty to one. 0:10:38.800 --> 0:10:39.200 Oh five. 0:10:39.360 --> 0:10:43.400 Sandro mamukelos Villi, the former Seaton Hall firate who comes 0:10:43.440 --> 0:10:46.160 off the bench averages nine points a game. He shot 0:10:46.240 --> 0:10:49.440 thirteen of fourteen, made all seven of his three pointers. 0:10:49.440 --> 0:10:52.960 He scored thirty four points in only nineteen minutes. That's 0:10:52.960 --> 0:10:56.160 never been done before in NBA history and CAA tournament 0:10:56.200 --> 0:10:58.520 first four was looking like a Texas victory. 0:10:58.600 --> 0:10:59.959 Back came Xavier. 0:11:00.240 --> 0:11:02.480 Pick that on the one off coast to Toddwell five 0:11:02.559 --> 0:11:04.839 seconds one of the freinantal. 0:11:04.360 --> 0:11:08.040 detO countess the party is out. 0:11:08.120 --> 0:11:11.199 It taken to thirteen points. 0:11:10.840 --> 0:11:12.679 Down in the second half. 0:11:12.600 --> 0:11:14.880 The Zacor Musketeers. 0:11:14.520 --> 0:11:17.840 Storm back West been One's avery one eighty six to eighty, 0:11:17.960 --> 0:11:19.880 finishing the game on a sixteen to six run. 0:11:19.920 --> 0:11:21.199 Will now play Illinois. 0:11:21.320 --> 0:11:23.720 Duke is next for Mount Saint Mary's, who'd be at 0:11:23.720 --> 0:11:27.480 American in eighty three seventy two sixteen games today and tonight, 0:11:27.480 --> 0:11:30.280 including Saint John's a nine to forty five tip off 0:11:30.320 --> 0:11:34.000 in Providence against Omaha. The Minnesota Vikings say they don't 0:11:34.000 --> 0:11:36.760 want Aaron Rodgers. They'll use the youngster JJ McCarthy as 0:11:36.760 --> 0:11:40.120 their quarterback to look for a veteran backup. Presumably means Rogers, 0:11:40.120 --> 0:11:42.480 if he doesn't retire, will play for either Pittsburgh of 0:11:42.520 --> 0:11:45.560 the Giants. The Competition Committee for the NFL will consider 0:11:45.559 --> 0:11:48.280 a proposal that home field in the playoffs will be 0:11:48.280 --> 0:11:49.680 determined by each team's record. 0:11:49.960 --> 0:11:51.959 Division champs will no longer be sure of getting a 0:11:52.000 --> 0:11:55.320 home game. John stash Aller, Bloomberg Sports Taranga. 0:11:57.160 --> 0:12:01.640 Coast to Coast on Bloomberg Radio nationwide on Serious Exam and. 0:12:01.679 --> 0:12:04.880 Around the world on Bloomberg dot Com and the Bloomberg 0:12:04.960 --> 0:12:07.400 Business app. This is Bloomberg Daybreak. 0:12:07.600 --> 0:12:10.360 Good morning. I'm Nathan Hager. President Donald Trump is putting 0:12:10.400 --> 0:12:12.520 pressure on the Fed now that it's waiting to cut 0:12:12.600 --> 0:12:15.600 rates before Tariff's kick in. In a truth social posts, 0:12:15.640 --> 0:12:17.640 the President called on the Central Bank to quote do 0:12:17.760 --> 0:12:20.600 the right thing and cut Of course, Trump's made no 0:12:20.760 --> 0:12:23.520 secret about wanting to sway J Powell, I think. 0:12:23.400 --> 0:12:24.520 I'm better than he would be. 0:12:24.920 --> 0:12:27.040 I think I'm better than most people would be in 0:12:27.040 --> 0:12:29.079 that position. I think I have the right to say 0:12:29.120 --> 0:12:30.800 I think you should go up or down a little bit. 0:12:31.120 --> 0:12:33.640 That was the President speaking of Bloomberg's John mckelthwaye during 0:12:33.679 --> 0:12:36.160 the campaign back in October. And this morning we're joined 0:12:36.160 --> 0:12:39.400 by Bloomberg News senior editor Derek Wallbank. So, Derek, I 0:12:39.400 --> 0:12:41.680 guess we shouldn't be too surprised that the president would 0:12:41.720 --> 0:12:42.959 be calling for interest rate cuts. 0:12:43.000 --> 0:12:46.160 Now, No, I don't think you should be too surprised, Nathan. 0:12:46.200 --> 0:12:51.160 It's good to talk with you. Donald Trump has said 0:12:51.160 --> 0:12:55.800 throughout his first term he wanted lower rates. He's doing 0:12:55.840 --> 0:12:58.840 so again here. He has made no secret that he 0:12:59.120 --> 0:13:03.240 has wanted to have a big voice on rate policy. 0:13:03.280 --> 0:13:06.640 And look, there's no question right now the White House 0:13:06.679 --> 0:13:10.600 is very cognizant of what is happening in markets as 0:13:10.840 --> 0:13:14.960 Trump is ramping up his tariff push. Now we're all 0:13:15.000 --> 0:13:18.160 sort of focused towards this key date of April second, 0:13:18.160 --> 0:13:20.200 but with an awful lot of uncertainty. And you can 0:13:20.240 --> 0:13:23.680 see this uncertainty playing out in markets, this kind of 0:13:23.840 --> 0:13:28.440 arbitrage between what Trump has promised at the maximalist levels 0:13:28.679 --> 0:13:32.200 and what people think might actually happen. Certainly there's been 0:13:32.200 --> 0:13:35.160 a big gap between those maximalist proposals and what has 0:13:35.360 --> 0:13:39.520 been implemented so far. So that's really, I think a 0:13:39.600 --> 0:13:42.760 key key point that they're working. So you're not necessarily 0:13:43.520 --> 0:13:45.680 too big of a surprise that Trump is calling for 0:13:45.760 --> 0:13:47.920 a little bit of easing to sort of help out 0:13:47.960 --> 0:13:52.040 on the margins there. At the same time, it's fairly 0:13:52.080 --> 0:13:55.439 clear that the FED is so far interested in doing 0:13:55.520 --> 0:13:59.560 what it's going to do, and we haven't really seen 0:13:59.640 --> 0:14:03.240 any movement necessarily towards Trump positions so far. 0:14:03.480 --> 0:14:06.120 Now, of course, we heard from j Powell just yesterday 0:14:06.120 --> 0:14:08.640 bringing back the tea words, saying that the impact of 0:14:08.720 --> 0:14:12.960 tariffs could be transitory. Could that put the FED at 0:14:13.040 --> 0:14:15.960 loggerheads with the President when he and this truth Social 0:14:16.000 --> 0:14:19.520 Post is talking about April second being Liberation Day and 0:14:19.640 --> 0:14:21.600 tying potential rate cuts to tariffs. 0:14:22.200 --> 0:14:24.720 Well, there certainly is a divide between the way that 0:14:24.760 --> 0:14:27.840 the FED wants to go, as Powell put it out, 0:14:27.880 --> 0:14:29.520 in the way that Trump wants to go. There's no 0:14:29.680 --> 0:14:32.880 question that there's something there. One thing I would point 0:14:32.920 --> 0:14:35.920 to is that during the first Trump administration, the Fed 0:14:36.000 --> 0:14:39.560 did actually take some steps to sort of minimize the 0:14:39.600 --> 0:14:42.760 pain of the tariffs, and that was something that was 0:14:42.800 --> 0:14:45.080 a little bit controversial at the time, This question of 0:14:45.360 --> 0:14:47.720 whether or not they said, when it's considering it's an 0:14:48.200 --> 0:14:52.040 economic mandate, should think about like the very short term 0:14:52.120 --> 0:14:54.280 or should think about like the medium or long term. 0:14:54.320 --> 0:14:56.840 The FED at the time said, you know, essentially that 0:14:57.440 --> 0:14:59.920 it had a responsibility to the economy as it was, 0:15:00.160 --> 0:15:03.560 and so you know, whether or not that was good 0:15:03.600 --> 0:15:05.240 bet or and different, that was kind of the way 0:15:05.240 --> 0:15:08.440 that we went this time. I think it's going to 0:15:08.440 --> 0:15:11.840 be a real interesting question of what happens. But look, 0:15:12.240 --> 0:15:14.520 you know, there's been a there's been a thought that 0:15:14.560 --> 0:15:16.360 central banks, not just the FED but all over the 0:15:16.360 --> 0:15:21.560 world are waiting to see exactly what Trump's tariff posture 0:15:21.640 --> 0:15:24.720 is going to be before they're going to be fully 0:15:24.760 --> 0:15:29.680 able to effectively respond to whatever economic realities shake out 0:15:29.720 --> 0:15:30.640 as a result of that. 0:15:31.200 --> 0:15:34.120 This is Bloomberg day Break, your morning podcast and the 0:15:34.200 --> 0:15:37.720 stories making news from Wall Street to Washington and beyond. 0:15:37.960 --> 0:15:40.360 Look for us on your podcast feed by six am 0:15:40.400 --> 0:15:43.800 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:15:44.040 --> 0:15:46.880 You can also listen live each morning starting at five 0:15:46.920 --> 0:15:49.520 am Wall Street Time on Bloomberg eleven three to zero 0:15:49.640 --> 0:15:52.520 in New York, Bloomberg ninety nine to one in Washington, 0:15:52.600 --> 0:15:56.520 Bloomberg ninety two nine in Boston, and nationwide on serious 0:15:56.720 --> 0:15:58.440 XM Channel one twenty one. 0:15:58.680 --> 0:15:59.000 Plus. 0:15:59.040 --> 0:16:01.640 Listen coast to coast on the Bloomberg Business app now 0:16:01.640 --> 0:16:04.239 with Apple CarPlay and Android Atto interfaces. 0:16:04.480 --> 0:16:07.520 And don't forget to subscribe to Bloomberg News Now. It's 0:16:07.520 --> 0:16:10.280 the latest news whenever you want it in five minutes 0:16:10.360 --> 0:16:13.480 or less. Search Bloomberg News Now on your favorite podcast 0:16:13.520 --> 0:16:17.680 platform to stay informed all day long. I'm Karen Moscow. 0:16:17.480 --> 0:16:18.440 And I'm Nathan Hager. 0:16:18.600 --> 0:16:20.680 Join us again tomorrow morning for all the news you 0:16:20.680 --> 0:16:23.240 need to start your day right here on Bloomberg Day 0:16:23.320 --> 0:16:23.480 Ray