Post-FOMC Rally; Trump Heads to DC

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:09.800 --> 0:00:10.360 Good morning. 0:00:10.400 --> 0:00:13.360 I'm Nathan Hager and I'm Amy Morris. Here are the 0:00:13.400 --> 0:00:14.960 stories we're following today. 0:00:15.200 --> 0:00:15.520 Amy. 0:00:15.640 --> 0:00:19.360 Stocks begin this day at all time highs following yesterday's 0:00:19.360 --> 0:00:23.880 double dose of economic news. Inflation came in softer than expected, 0:00:24.160 --> 0:00:26.880 and the Federal Reserve did little to offset Wall Street's 0:00:26.880 --> 0:00:29.840 bets that interest rates will drop at least twice in 0:00:29.880 --> 0:00:33.080 twenty twenty four. Gina Martin Adams is chief US Equity 0:00:33.080 --> 0:00:34.760 analyst at Bloomberg Intelligence. 0:00:35.080 --> 0:00:38.320 I think that equities are experiencing a bit of inflation relief, 0:00:38.400 --> 0:00:41.680 so as long as CPI is continuing to accelerate, equities 0:00:41.720 --> 0:00:43.400 feel a lot better that at the very least, the 0:00:43.440 --> 0:00:45.760 Fed is on hold. And frankly, the Fed on hold 0:00:45.800 --> 0:00:48.440 is the best possible outcome for stocks. At this moment, 0:00:48.479 --> 0:00:50.880 we weren't contending with the notion that maybe the Fed 0:00:50.920 --> 0:00:52.280 would even have to tighten again. 0:00:52.680 --> 0:00:55.480 Bloomberg Intelligence is Gina Martin Adams notes the S and 0:00:55.520 --> 0:00:57.960 P five hundred top to fifty four hundred for the 0:00:58.000 --> 0:01:01.520 first time in its history. Yes marked the twenty month 0:01:01.560 --> 0:01:04.040 anniversary of this bullmarket, and. 0:01:04.040 --> 0:01:07.520 Nathan asked for the Fed officials dialed back their expectations 0:01:07.520 --> 0:01:10.200 for interest rate cuts this year, although they did keep 0:01:10.240 --> 0:01:13.080 the door open for more. Jay Powell and company also 0:01:13.160 --> 0:01:16.920 raising their forecasts for inflation, even after better data on 0:01:17.000 --> 0:01:21.240 consumer prizes published earlier in the day provided cause for optimism. 0:01:21.400 --> 0:01:23.880 We don't make decisions about future meetings until we get there. 0:01:24.120 --> 0:01:25.880 I think in terms of what we need to see, 0:01:26.000 --> 0:01:29.480 we want to gain further confidence. Certainly, more good inflation 0:01:29.600 --> 0:01:32.240 readings will help with that. I'm not going to be 0:01:32.280 --> 0:01:34.920 specific about how many, because you know, really it's going 0:01:35.000 --> 0:01:37.399 to be not just the inflationing readings, It's going to 0:01:37.400 --> 0:01:38.800 be the totality. 0:01:38.240 --> 0:01:38.720 Of the data. 0:01:39.280 --> 0:01:42.160 Jay Powell and the Fed yesterday left the benchmark federal 0:01:42.160 --> 0:01:44.320 funds right in a range of five and a quarter 0:01:44.360 --> 0:01:45.480 percent to five. 0:01:45.319 --> 0:01:47.800 And a half percent, and reaction is still pouring in 0:01:48.080 --> 0:01:51.840 to that decision, along with the inflation data. Amy Jeffrey 0:01:51.880 --> 0:01:55.040 Rosenberg is a senior portfolio manager at black Rock. 0:01:55.320 --> 0:01:58.000 What is clear here is that having been a little 0:01:58.040 --> 0:02:01.680 bit burned by the enthusiasm at the end of last 0:02:01.760 --> 0:02:05.520 year and then the reversal on inflation, they're not going 0:02:05.600 --> 0:02:09.360 to want to reverse so quickly with just one good print. 0:02:09.400 --> 0:02:11.040 And he stated again and again. 0:02:11.120 --> 0:02:16.120 They'll need more than just one blackrocks. Jeffrey Rosenberg says 0:02:16.160 --> 0:02:19.280 investors risk losing out on income by staying in cash. 0:02:19.320 --> 0:02:22.160 He says treasuries maturing in two to five years are 0:02:22.280 --> 0:02:23.560 more attractive investment. 0:02:24.080 --> 0:02:26.000 And it looks like the tech rally is set to 0:02:26.040 --> 0:02:29.200 continue Today and Nasdaq futures are up three quarters of 0:02:29.200 --> 0:02:32.760 a percent, helping fuel gains. Broadcom those shares are up 0:02:32.840 --> 0:02:36.720 fourteen percent. The chip supplier reported quarterly results in an 0:02:36.760 --> 0:02:41.359 annual forecast, topping estimates, lifted by robust demand for artificial 0:02:41.400 --> 0:02:45.320 intelligence products. We get more on that from Bloomberg's Charlie Pellett. 0:02:45.480 --> 0:02:48.880 Broadcom is a chip supplier to Apple and other big 0:02:48.919 --> 0:02:52.440 tech companies. It said sales in the full fiscal year, 0:02:52.680 --> 0:02:56.720 which runs through October, will be about fifty one billion dollars. 0:02:57.000 --> 0:03:00.720 Analysts had projected about fifty point six billion. In the 0:03:00.800 --> 0:03:06.119 race to build artificial intelligence systems has benefited semiconductor companies 0:03:06.240 --> 0:03:09.600 like Broadcom, even though they don't sell the highly prized 0:03:09.639 --> 0:03:13.120 AI chips that are made by Nvidia in New York. 0:03:13.320 --> 0:03:15.120 Charlie Pellett Bloomberg. 0:03:14.720 --> 0:03:17.119 Radio, All right, Charlie, thanks On top of that, Broadcom 0:03:17.160 --> 0:03:19.960 also announced a ten for one stock split, and sticking 0:03:19.960 --> 0:03:22.800 with tech, Bloomberg News has learned open Ai is on 0:03:22.880 --> 0:03:26.240 pace for three point four billion dollars of annual revenue, 0:03:26.360 --> 0:03:29.520 sources say CEO Sam Altman told company staff the vast 0:03:29.520 --> 0:03:33.359 majority of that is coming from open ais products and services, and. 0:03:33.400 --> 0:03:36.760 Shares of Tesla up almost seven percent now to key 0:03:36.840 --> 0:03:40.640 proposals to reratify Elon Musk's pay package and to make 0:03:40.720 --> 0:03:43.480 Texas the legal home for Tesla appear to be on 0:03:43.520 --> 0:03:46.760 the way to passing, according to a preliminary shareholder vote. 0:03:46.880 --> 0:03:49.800 This all started in January, when a judge in Delaware 0:03:49.840 --> 0:03:53.120 struck down Musk's fifty six billion dollar pay package after 0:03:53.160 --> 0:03:56.920 a shareholder challenged it as excessive. That's what Musk said 0:03:56.960 --> 0:03:59.640 he would move the company's legal home to Texas, but 0:03:59.720 --> 0:04:04.440 both proposals require investor support. Tesla's shareholder meeting is today 0:04:04.480 --> 0:04:06.280 at the company's headquarters in Austin. 0:04:06.640 --> 0:04:08.520 Turning back to Washington, Amy, it's going to be a 0:04:08.560 --> 0:04:12.000 day to watch on Capitol Hill. Former President Donald Trump 0:04:12.120 --> 0:04:14.640 is coming back to the nation's capital for the first 0:04:14.720 --> 0:04:17.919 time since his felony convictions in New York last month. 0:04:18.120 --> 0:04:20.880 Trump will be meeting with GOP lawmakers for a show 0:04:20.880 --> 0:04:23.839 of their support. We get more from Bloomberg's Wendy Benjaminson 0:04:23.880 --> 0:04:27.120 in Washington, he is meeting with the House Republicans and 0:04:27.200 --> 0:04:30.560 Senate Republicans to set the policy for the rest of this. 0:04:30.640 --> 0:04:33.800 Year and then if they win after that. I think 0:04:33.839 --> 0:04:36.520 even if he loses, he's still and Biden as president. 0:04:36.839 --> 0:04:39.760 Republicans in Congress will still be pushed and pulled by 0:04:39.839 --> 0:04:42.800 Donald Trump in terms of the policy that they're going 0:04:42.880 --> 0:04:45.279 to talk about. Right before he goes and meets with 0:04:45.320 --> 0:04:47.120 the most powerful CEOs in the. 0:04:47.040 --> 0:04:51.040 Country, Bloomberg's Wendy Benjamin Sin says ceo is expected to 0:04:51.040 --> 0:04:54.560 meet with the former president today include JP Morgan, Chases, 0:04:54.640 --> 0:04:57.719 Jamie Diamond, Jane Fraser of City Group, Bank of Americas, 0:04:57.760 --> 0:05:01.400 Brian moynihan, and Apple CEO Tim Cook. They'll be appearing 0:05:01.400 --> 0:05:04.240 at an event hosted by the Business Roundtable. 0:05:04.480 --> 0:05:07.799 And crucial talks are getting underway this morning in Barry, Italy. 0:05:08.200 --> 0:05:10.440 That is where leaders of the Group of Seven Nations 0:05:10.520 --> 0:05:14.080 are gathering to discuss a range of issues, from confronting 0:05:14.200 --> 0:05:17.680 China to supporting Ukraine. And there's already progress on one 0:05:17.760 --> 0:05:20.400 score Bloomberg News has learned the G seven has agreed 0:05:20.440 --> 0:05:23.600 on a loan structure for Ukraine using the profits from 0:05:23.640 --> 0:05:27.360 frozen Russian assets. More on this with Bloomberg's Oliver Crook 0:05:27.400 --> 0:05:28.359 at the summit in Bari. 0:05:28.640 --> 0:05:31.400 We've been talking about sums at about fifty billion dollars 0:05:31.600 --> 0:05:34.320 and what it's looking like now. The agreement that's coalescing 0:05:34.600 --> 0:05:36.080 is will be done in the sort of form of 0:05:36.120 --> 0:05:37.760 a loan that's going to be backed by a number 0:05:37.760 --> 0:05:40.120 of the G seven nations, mostly by the United States, 0:05:40.200 --> 0:05:42.000 but topped up by others, and that gets sort of 0:05:42.000 --> 0:05:45.039 pushed out to Ukraine, and then that loan gets eventually 0:05:45.080 --> 0:05:48.400 repaid over time with the profits from those frozen assets 0:05:48.400 --> 0:05:50.400 that sit mostly here in Europe. 0:05:50.839 --> 0:05:54.359 But Bloomberg's Oliver Krik reports the final technical details on 0:05:54.400 --> 0:05:57.720 the loan structure will be ironed out after this weekend summit. 0:05:58.040 --> 0:06:00.640 Back to markets now, Amy and a focus on short 0:06:00.680 --> 0:06:04.560 selling amid the resurgence of the Meme stock craze. Legendary 0:06:04.600 --> 0:06:08.119 short seller Jim Chano says a relentless bull market leaves 0:06:08.160 --> 0:06:11.560 many companies with bloated valuations that's made it harder to 0:06:11.680 --> 0:06:14.880 raise capital for short sellers. Still, he tells Bloomberg, short 0:06:14.880 --> 0:06:17.240 selling could help investors in the current environment. 0:06:17.520 --> 0:06:19.480 I've called this the golden age of fraud. So there's 0:06:19.560 --> 0:06:23.760 just so many companies, so many companies now that are 0:06:23.760 --> 0:06:27.080 playing games that are to try and take advantage of investors. 0:06:27.120 --> 0:06:28.600 So we need short sellers more than ever. 0:06:28.800 --> 0:06:29.800 Jim Chano tells us. 0:06:29.839 --> 0:06:32.839 Even though there are opportunities to expose corporate fraud, he 0:06:32.880 --> 0:06:35.880 does not see short selling attracting big pools of capital 0:06:35.960 --> 0:06:36.720 anytime soon. 0:06:37.440 --> 0:06:40.440 And frankly, we hope you don't have a beef with 0:06:40.600 --> 0:06:43.600 this final story. And Netflix says it will air a 0:06:43.680 --> 0:06:46.960 live hot dog eating competition on Labor Day. I know 0:06:47.640 --> 0:06:51.760 main combatants will be Joey Chestnut and rival to Karo Kobyashi. Now, 0:06:51.760 --> 0:06:54.440 the announcement comes just a day after Chestnut was banned 0:06:54.480 --> 0:06:57.760 from the annual Fourth of July Nathan's famous hot dog 0:06:57.800 --> 0:07:00.760 eating contest in Coney Island. He signed up marketing deal 0:07:00.760 --> 0:07:03.640 with Impossible Foods. That's a plant based food company that 0:07:03.760 --> 0:07:09.600 sells meatless hot dogs. Time out for a look at 0:07:09.600 --> 0:07:11.480 some of the other stories making news in New York 0:07:11.520 --> 0:07:13.360 and around the world, and for that we're joined by 0:07:13.400 --> 0:07:15.640 Bloomberg's Michael bar Good morning, Michael. 0:07:15.480 --> 0:07:17.920 Good morning Amy. A man in New York City is 0:07:18.000 --> 0:07:21.320 under arrest after police pulled him over for a traffic 0:07:21.360 --> 0:07:24.880 stop and found a cache of weapons in his vehicle. 0:07:25.280 --> 0:07:28.200 In MYPD, Chief Jeffrey Madrid members of. 0:07:28.120 --> 0:07:32.600 Disapartment macgun arrest, weapons arrest arrest for knives every day, 0:07:33.120 --> 0:07:37.760 but arrest of this magnitude the amount of ammunition, NYPD 0:07:38.280 --> 0:07:40.840 paraphernalia in the car was significant. 0:07:41.120 --> 0:07:44.560 Chief Madre says during their search, police found a handgun, 0:07:44.840 --> 0:07:51.440 nine loaded magazines, body armor, handcuffs, NYPD uniform items, two axes, 0:07:51.720 --> 0:07:55.720 a stun gun, multiple knives, a weighted whip, and an 0:07:55.760 --> 0:08:00.320 expandable baton. A tropical disturbance has brought a rare flash 0:08:00.360 --> 0:08:03.760 flood emergency to much of southern Florida. The downpours and 0:08:03.800 --> 0:08:09.000 subsequent flooding blocked roads and floated vehicles. Dania Beach received 0:08:09.000 --> 0:08:11.200 about a foot of rain. According to Mayor A. J. 0:08:11.400 --> 0:08:15.840 Ryan, I've definitely seen residents in kayaks and rafts trying 0:08:15.840 --> 0:08:19.640 to help other residents and you know, getting outside and 0:08:19.680 --> 0:08:22.280 assisting others, so that that's really a great thing to see. 0:08:22.480 --> 0:08:26.840 Floridians are preparing to weather more heavy rainfall today and tomorrow. 0:08:27.360 --> 0:08:30.600 House Republicans voted to hold Attorney General Merrick Garland in 0:08:30.720 --> 0:08:34.560 contempt of Congress. It was for refusing to turnover audio 0:08:34.600 --> 0:08:38.320 recordings of President Biden's interview with a Special Console during 0:08:38.320 --> 0:08:42.720 the Classified Documents investigation. The transcripts of that interview have 0:08:42.920 --> 0:08:47.040 already been made public, and the Special Council declined to prosecute. 0:08:47.200 --> 0:08:51.120 Republican James Comer of Kentucky explained why he was seeking 0:08:51.160 --> 0:08:52.920 the contempt charge against Garland. 0:08:53.360 --> 0:08:56.680 The House of Representatives cannot serve as a necessary check 0:08:56.679 --> 0:08:59.640 on the presidency if the executive branch is free to 0:08:59.679 --> 0:09:01.679 ignore the House is subpoenis. 0:09:01.679 --> 0:09:04.760 However, Democrat Jamie Raskin said the effort was the latest 0:09:04.760 --> 0:09:08.560 in a series of unfounded Republican attacks on the Biden administration. 0:09:08.920 --> 0:09:11.600 Holding the Attorney JOm the United States in contempt is 0:09:11.679 --> 0:09:16.880 one more useful distraction from the complete and devastating implosion 0:09:17.360 --> 0:09:20.319 of the Biden impeachment probe, which, of course, was the 0:09:20.440 --> 0:09:23.360 number one priority of these talented leaders. 0:09:23.440 --> 0:09:26.679 The vote was mostly along party lines. The Southern Baptist 0:09:26.760 --> 0:09:30.640 Convention voted to oppose the use of in vitro fertilization. 0:09:31.240 --> 0:09:36.840 Southern Baptists, the country's largest Protestant denomination, has almost thirteen 0:09:37.240 --> 0:09:41.079 million church members across the US. Global news twenty four 0:09:41.120 --> 0:09:43.280 hours a day and whenever you want it with the 0:09:43.280 --> 0:09:46.800 Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg Gaming. 0:09:47.080 --> 0:09:54.160 All right, Thank you, Michael. Time now for our Bloomberg 0:09:54.200 --> 0:09:57.120 Sports Update. For that, we bring in John's Dash Hour. 0:09:57.120 --> 0:10:00.640 Our good Morning Amy. Unless the Dallas mavericke do something 0:10:00.679 --> 0:10:03.440 never before done in the NBA playoffs, the Boston Celtics 0:10:03.480 --> 0:10:05.680 are gonna be NBA champs for the eighteenth time no 0:10:05.720 --> 0:10:07.599 teams come back from a three to nothing definit of 0:10:07.600 --> 0:10:10.880 The Celtics lead the finals three zip in Dallas. They 0:10:10.920 --> 0:10:13.480 won the third quarter thirty five to nineteen, and they 0:10:13.520 --> 0:10:15.520 won Game three one oh six to ninety nine, and 0:10:15.559 --> 0:10:18.480 they can finish the final sweep tomorrow. And the Celts 0:10:18.480 --> 0:10:20.760 are now seven seven to zero on the road. In 0:10:20.800 --> 0:10:23.160 the playoffs. They were led by their stars. Jason Tatum 0:10:23.200 --> 0:10:25.880 scored thirty one points, Jalen Brown scored thirty. He was 0:10:25.920 --> 0:10:27.960 happier about what he did at the other end of 0:10:28.000 --> 0:10:28.360 the court. 0:10:28.520 --> 0:10:31.920 That's to be in these moments and so your defensive versatility, 0:10:31.960 --> 0:10:34.640 I mean picking guys up guard and GUYZ in the post, 0:10:34.679 --> 0:10:40.000 switching on blocking contested threes. It's been big for us, 0:10:40.000 --> 0:10:43.199 but we got a lot of great defenders on this team, 0:10:43.240 --> 0:10:44.520 so it has been a four team effort. 0:10:44.679 --> 0:10:46.600 The four tip off a moment of silence for an 0:10:46.679 --> 0:10:49.600 NBA legend, Jerry West, passed away at eighty six. You 0:10:49.600 --> 0:10:52.800 can make the argument no one in sports history combine 0:10:52.880 --> 0:10:55.320 excellence as both a player and then as a front 0:10:55.360 --> 0:10:58.160 office executive. West played fourteen years with the Lakers, who 0:10:58.200 --> 0:11:00.640 was an All Star in all of them, ented by 0:11:00.679 --> 0:11:03.320 playoff disappointments. He lost eight times in the finals, but 0:11:03.360 --> 0:11:06.840 he still ended up part of nine championship teams. Yankees 0:11:06.880 --> 0:11:09.320 finished the sway in Kansas City. This went over very early, 0:11:09.360 --> 0:11:11.440 a six run first inning. Yanks went on to win 0:11:11.480 --> 0:11:13.920 eleven to five, three run homers for Jose Travino and 0:11:13.960 --> 0:11:16.360 Glaber Torres, and the Yanks had won twelve with our 0:11:16.400 --> 0:11:19.400 last fourteen. While they were scoring eleven runs, the Mets 0:11:19.400 --> 0:11:22.280 put up ten a ten to four city field route 0:11:22.280 --> 0:11:25.280 of Miami. Mets had fourteen hits, hit three homers. US 0:11:25.360 --> 0:11:28.240 opened teas off this morning at Pinehurst number two in 0:11:28.280 --> 0:11:31.920 North Carolina. There have been three previous opens at this course, 0:11:31.920 --> 0:11:35.000 and only four have ever finished with the score under par. 0:11:35.480 --> 0:11:38.680 Sixty thousand Patriots fans at Gillette Stadium for the Tom 0:11:38.720 --> 0:11:42.000 Brady ceremony a lot different than that roast they recently 0:11:42.080 --> 0:11:44.120 had for him. Over one hundred of its former teammates 0:11:44.320 --> 0:11:46.600 on hands. So is Bill Belichick for the three hour 0:11:46.679 --> 0:11:49.680 long tribute. John Stashenware Bloomberg Sports. 0:11:49.320 --> 0:11:49.880 Amy and Nick. 0:11:52.520 --> 0:11:56.680 Coast to coast on Bloomberg Radio nationwide on Sirius XM, 0:11:56.760 --> 0:11:59.600 and around the world on Bloomberg dot Com and the 0:11:59.600 --> 0:12:04.319 Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm 0:12:04.360 --> 0:12:07.120 Nathan Hager. Where to bet on rates now? 0:12:07.360 --> 0:12:10.559 When the Federal Reserve is dialing back its own expectations 0:12:10.679 --> 0:12:14.920 on cuts this year, but Chairman Jerome Powell maybe leaving 0:12:14.920 --> 0:12:17.320 the door open for more after the latest reading on 0:12:17.440 --> 0:12:21.319 inflation came in cooler than expected, a one two economic 0:12:21.400 --> 0:12:25.199 punch that investors are still sorting out. Let's get some 0:12:25.440 --> 0:12:28.720 clarity if we can now from Jennifer Lee, senior economist 0:12:28.840 --> 0:12:32.360 at BEMO Capital Markets. Jen always great to speak with you. 0:12:32.440 --> 0:12:35.680 So the median dots up a bit, but there's a 0:12:35.679 --> 0:12:38.720 lot of wiggle room in there. What's the signal you're 0:12:38.760 --> 0:12:41.880 seeing from this Federal Reserve now, well, good. 0:12:41.800 --> 0:12:43.640 Morning and thanks for having me on. It was a 0:12:43.840 --> 0:12:47.680 very mixed signal, but clearly I think all the set 0:12:47.720 --> 0:12:51.600 officials are being very cautious, you know, and again I'm 0:12:51.600 --> 0:12:54.439 going to point to all those keywords that have been 0:12:54.520 --> 0:12:57.320 used by every central bank around the world and certainly 0:12:57.320 --> 0:12:59.880 buy it said to your Powell yesterday about the hotel, 0:13:00.120 --> 0:13:02.680 looking at the totality of the data, how everything is 0:13:02.679 --> 0:13:04.960 going to be dependent on the data, and how every 0:13:05.000 --> 0:13:06.960 decision is going to be made on a meeting by 0:13:07.040 --> 0:13:09.400 meeting basis. I thought it's quite interesting, by the way, 0:13:09.400 --> 0:13:12.720 when he was talking about how they had this decision 0:13:12.800 --> 0:13:17.880 actually reflected that great that or that very encouraging macp 0:13:18.000 --> 0:13:20.719 I figured that was released earlier in the morning, but 0:13:20.840 --> 0:13:22.480 only like I think a couple of them or a 0:13:22.480 --> 0:13:24.920 few of them made some tweets to their to their diets. 0:13:24.960 --> 0:13:27.880 I think everyone wants to be very cautious before they 0:13:27.880 --> 0:13:30.199 get too excited about rate cuts. 0:13:30.840 --> 0:13:32.959 So you don't think that the door is open then 0:13:33.120 --> 0:13:36.080 for a rate cut in July. I mean, we do 0:13:36.280 --> 0:13:38.880 get a fair amount of data between now and then. 0:13:39.640 --> 0:13:42.280 Yeah, I think, I know, I don't think it's a 0:13:42.840 --> 0:13:44.800 I think that would be far too see like so 0:13:44.880 --> 0:13:48.559 far for being where we have September and December and 0:13:48.800 --> 0:13:51.440 so far we're pretty comfortable with that. I mean, certainly, 0:13:51.600 --> 0:13:53.720 you know, we saw yesterday market. You know, there's so 0:13:53.760 --> 0:13:56.520 much joy in who will after that? After that very 0:13:56.600 --> 0:13:58.760 encouraging report, But there's you know, that was only two 0:13:58.760 --> 0:14:02.320 in a row. Arguably the first one last month was 0:14:02.720 --> 0:14:04.400 encouraging as well, but I had a very low bar 0:14:04.520 --> 0:14:06.920 to beat, so you know, that's only really one about half. 0:14:06.960 --> 0:14:09.640 We'll say, these CPI reports, you're going to need a 0:14:09.679 --> 0:14:11.199 lot more than that. So I think by the time 0:14:11.320 --> 0:14:14.920 September rolls around, and plus I should also mentioned that 0:14:15.000 --> 0:14:18.680 we're going to have the Jackson Hole meeting as well 0:14:18.720 --> 0:14:21.200 in August to two over as well, so I think 0:14:21.240 --> 0:14:23.840 that will hold a little bit more importance at that 0:14:23.960 --> 0:14:26.800 point in time, which I guess time's going to fly 0:14:26.840 --> 0:14:28.680 by as alone in a couple of months. So I 0:14:28.680 --> 0:14:31.120 think July is far far too early, but I think 0:14:31.160 --> 0:14:32.840 September is still quite doable. 0:14:33.160 --> 0:14:35.680 We also saw the FED raise its projections for where 0:14:35.680 --> 0:14:38.000 inflation is going to come down in the next few years. 0:14:38.000 --> 0:14:41.359 Do those projections match with what you're seeing over Bemo. 0:14:43.480 --> 0:14:45.560 Yes, I think, you know, he sort of downplayed it. 0:14:45.600 --> 0:14:48.000 I think you know he's saying that they're being very conservative. 0:14:49.160 --> 0:14:51.400 I think they would rather It would be very strange 0:14:51.440 --> 0:14:54.240 if their dots came in, you know, as they did 0:14:54.280 --> 0:14:57.240 with only one the median, seeing only one rate cut 0:14:57.280 --> 0:15:02.080 this year, and yet having inflation forecast coming lower. So 0:15:02.120 --> 0:15:03.720 I think, you know, I think it would be a 0:15:03.840 --> 0:15:06.800 very mixed message at that point. So not too shocked 0:15:06.840 --> 0:15:10.320 to see higher inflation factoring in, and then, of course, 0:15:10.400 --> 0:15:12.920 you know, only one rate cut this year instead of three. 0:15:13.280 --> 0:15:16.320 What's the risk in kicking off the rate cycle sooner 0:15:16.360 --> 0:15:17.600 than the Fed is signaling? 0:15:17.600 --> 0:15:17.800 Now? 0:15:17.840 --> 0:15:21.720 Why not go ahead with rate cuts sooner than the 0:15:21.720 --> 0:15:22.440 Fed's been saying. 0:15:23.240 --> 0:15:26.040 I think there is a risk because right now the economy, 0:15:26.040 --> 0:15:28.040 although we have it's only been very recent that we 0:15:28.160 --> 0:15:33.360 started seeing some slower economic figures over the last say, 0:15:33.360 --> 0:15:35.520 a couple of weeks. So I think it's too soon, 0:15:35.560 --> 0:15:37.160 and it's going to be it's going to appear like 0:15:37.160 --> 0:15:39.160 they're jumping in the gun and the last thing they 0:15:39.200 --> 0:15:42.000 want to do is put in a rate cut say, 0:15:42.040 --> 0:15:44.480 you know, in July, for example, have the economy turn 0:15:44.520 --> 0:15:48.760 around and reaccelerate and have inflation accelerate again, and then 0:15:48.800 --> 0:15:51.560 the set's going to have a huge, bigger issue on 0:15:51.600 --> 0:15:53.960 their hands, which is credibility. So I think they're going 0:15:54.000 --> 0:15:58.160 to be very patient. Take this meeting by meeting, watch 0:15:58.400 --> 0:16:01.320 every piece of data that's coming out, and we'll see 0:16:01.360 --> 0:16:02.120 what happened to the full. 0:16:02.480 --> 0:16:05.520 This is Bloomberg Daybreak Today, your morning brief on the 0:16:05.560 --> 0:16:09.080 stories making news from Wall Street to Washington and beyond. 0:16:09.160 --> 0:16:12.160 Look for us on your podcast feed by six am 0:16:12.280 --> 0:16:16.480 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:16.560 --> 0:16:17.680 get your podcasts. 0:16:17.920 --> 0:16:20.640 You can also listen live each morning starting at five 0:16:20.680 --> 0:16:23.240 am Wall Street time on Bloomberg eleven three to zero 0:16:23.320 --> 0:16:26.200 in New York, Bloomberg ninety nine to one in Washington, 0:16:26.280 --> 0:16:29.160 Bloomberg one oh six to one in Boston, and Bloomberg 0:16:29.200 --> 0:16:30.840 ninety sixty in San Francisco. 0:16:31.200 --> 0:16:34.760 Our flagship New York station is also available on your 0:16:34.880 --> 0:16:40.280 Amazon Alexa devices. 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