or the fed supervisor? >> so i think -- i don't have an answer for that today. that is something that i have given thought to. these are prctices that have obtained for decades, really. they become more important in recent decades with the expansion of the supervisory activities, and i think that we -- i think that we should be paying more attention to it at the fed, how to square that circle. >> thank you. i look forward to continuing to keep an intense focus on this. and i also want to thank you for a lot

government because that would open the fed to a massive dose of transparency but really i suspect. the whatever it is that would cause the fed bills being backed by feel full faith in credit to consider have those books consolidated i suspect that the same thing would also apply to central bank digital currencies but i don't know that i'm awaiting on the request the fed has just gotten back to be recently with a notice saying hey we're going to give you a full response it we will produce the documents we will sign an exemption to the foyer by may 14th that's a friday it sounds like another issue here is that it would be violation of this idea that the fed is independent right so i can't yell as at the fed now things i treasure a and now she gets press conferences talking about the fed and a lot of people say that well in order to solve this crisis there needs a big consolidation of the treasury and the fed so what you're looking at here if in fact they consolidate that bill that would mean that we no longer have any pretense of an independent fed john you have to remember the feder

a warning from the fed. it says the rising appetite for risk is stretching valuations and creating vulnerabilities in the u.s. financial system. the central banks as prices could be vulnerable to significant declines if that appetite falls. fed governor lael brainard also cited the implosion of archegos capital and called for more hedge fund disclosures. british prime minister boris johnson has dealt a major blow to his chief political rival. johnson's ruling conservative party won a crushing victory in the palm entry dixit -- in the parliamentary district of hertfordshire. the loss is likely to intensify presser on -- intensify pressure on labour leader keir starmer. copperhead a high on the london metal exchange. copper -- copper hit a high on the london metal exchange. copper is considered a bellwether metal. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ ♪ >> we would

the fed will stay accommodative. some of that hopeful pricing, the hikes it had been priced in, you are seeing those come out of the market as the other move start to fade. matt: interesting it comes on the heels of yesterday's fed warning that these valuations are little bit high. that did not seem to bum out the market at all. the perspective from investors is it doesn't matter if the fed says evaluations are high. we have this essentially greenspan push forever, we are fine with buying the market up. katie: it's funny that everything the fed mentioned in the report yesterday pretty much rallied after the data. even bitcoin was having a tough go of it. it is rallying today. we did hear about this from powell last week. he said parts of markets have gotten a little frothy. at least part of that is thanks to monetary policy. if you look at the data and you take with the fed has been telling you for months, it's a green light for the speculative assets that support will stick around. matt: bitcoin over $58,000 right n

many want communication from the fed to begin right now they want to hear now in a the fed is thinking about thinking about changing its stance on tapering and raising rates that might be a short-term negative for the market, potentially, but many participants believe that it is a long term positive you can see that today it is very clear here, kelly, that a lot of people feel that this is good news, the statement they made yesterday that implies the fed is not going to fall behind which was another concern they had, they are not going to have to slam on the brakes later if they communicate to us slowly the process. they want slow communication and a clear idea of what the fed is going to be doing. >> bingo this is the debate everybody is having right now they are not sure if the fed is sure about what it wants is it serious about the socioeconomic goal of letting things run hot because it has more of a political agenda or not? is it going to be more like the fed we know from back in the olden days when of course if things started to run hot they would talk about the taper it is intere

these are regional fed presidents who have been hawkish. the fed is going to pull the rug out from underneath it as you are getting more political buy-in from your lieutenant? that seems absurd to me. i think the fed being easy is the name of the game and will be the last central bank to taper. that is going to be negative for the dollar, and it could mean some rotation into equities overseas. when you talk about production, we are talking about one month, right? every data point that went into that one month before it was stronger in terms of employment. we had a rising employment in the small business survey, alongside rising openings. does anyone really believe that the underlying trend in employment is 275,000? my guess is it is closer to 700,000 than not. as you bring those people on, you are going to get stronger rates of production. we started this segment talking about ism. the ism, last i checked, is in expansion. that means we are going to see more industrial production growth. you talk about inflation biting into earnings. we are

we about in the running to take the top job at the fed. you have to say it is said to get more dovish, not less so. tom: michael mckee under consideration as well. yes, the trend is hock-dev and toward dove but mostly toward global economists and academic, about the chops of the people involved. the names you mentioned are usually qualified. jonathan: we have become desensitized. lisa: the data ultimately will determine a lot of these paths. however, i will say randy quarles is who i'm looking at stop -- i'm looking at. under fire from no less and senator warren basically saying, you feel the financial system. i'm not sure exactly what she's referring to accepting the fact he has reduced some of the regulations. how will this just tell potential volatility? jonathan: along the financial system will be safer. lisa: heart -- harsh. tom: review of richard clarida versus the bank regulates inside. lisa, i would say that is more of the political site. lisa: i think the whole thing is becoming political. it will be interesting to see how volume

hope the fed would do? run the economy as hot as possible because the downside risk to the economy and to yields is way worse and more difficult for them to combat than the alternative? marvin: absolutely. i think that is why risk assets remained as supportive as they have been over the course of the last couple months, despite whether it is medical, virus volatility, and/or other volatility in the market. tom: so much of the exercise are now, and i to this as a -- at a macrolevel, is this news flow coming out of an original natural disaster into a boom economy. we have not seen this on a 47-48. what should our listeners and viewers do, given a boom economy? how do they allocate, given the macro flow of news? marvin: you know, i think rates and the fed is the backdrop around that. as long as you have these negative yields in a booming economy, it is supporting to risk asset and supporting for taking the equity risk. that becomes part of the asset allocation discussion. then, this has been a market where we

is that a concern for the fed? in terms of impacting inflation? chair powell: yes, over time and in the longer run the federal budget is on an unsustainable path. meaning that the debt is growing meaningfully faster than the economy. that is, by definition, unsustainable over time. it is a different thing to say the current level of debt is unsustainable. it is not. the current level of the debt is very sustainable, and there is no question about our ability to service an issue that debt for the foreseeable future. i would also say that as a nation we will have to eventually get back to a sustainable path. that is something that is best done in very good times when the economy is at full employment and taxes are rolling in. this is not the time to prioritize that concern, but is a concern we will have to return to again when the economy is strong. david: you have previously said, and i want to ask you if you feel the same way now, that currently you do not expect the that federal reserve to increase interest rates before the end of 2022. is that c

the fed's recent actions raise concerns. consider the increasing focus on this oppose the risks of global warming to the financial system. in march, a distinguished economist at stanford argued before this committee "climate change poses no measurable risk to the financial system". neither the warming of the temperature or severe threats to the system and experience bears this out in the last 11 years the time. that included four out of five costly as hurricanes news history, we have not found one bank failure caused by any weather event in fact no bank failure in the modern era. nevertheless the fed joined a network of central banks and supervisors to green the financial system. the aim is to use financial regulation to "mobilize mainstream finance to support the transition to a sustainable economy"and or their words to direct credit away from fossil fuels such actions are not consistent with the fed's mandate and authorities as chairman power has said society broad response to climate changes for others to decide in partic

if the fed is going to start to amount -- by year-end, when we think the fed starts to signal tapering, we might see higher rates because we have a ton of supply, particularly long end supply, so the portion hitting the market is low. with the taper down, you are essentially asking, could happen in 2021? i think it could. the fed will let us know when the taper tantrum happens, when they give us advance notice. the market is much less liquid today than it was in 2013 and we have a lot more debt. we are much more level. i would argue we can get a taper tantrum if the tapering advance notice happens earlier than what is priced in, fourth quarter of this year, we could get an environment where people stay away from long-duration treasuries as well as riskier assets. lisa: krishna, do you agree? krishna: no, i don't. i think there will be some reaction to tapering. because of the growth outlook in 2022 and 2023 is going to go down materially from what we have seen, that will end up tapering the taper tantrum. the analogy that we are drawing from, the last 10 years, we don't have the growth

or fed supervisor? >> i don't have an answer for that today and that is something that i have given thought to. these are practices that have obtained for decades, really. they become more important in recent decades with the expansion of the supervisory activities, and i think that we -- i think we should be paying more attention to it at the fed of how to score that circle. >> i want to thank you for the regulatory reform that you did to kind of ease the burden on the industry. i believe you played a very important role in doing that. i wanted to thank you publicly for it. thank you, mr. chair. >> thank you. senator warner is recognized, and i am going to go and slip into another hearing and if you could slip in senator mast yo if she's here. >> we know over the last year with covid we have seen a desperate economic affects, particularly communities of color and businesses run by women have hard hit. what we have talked in the past is a relatively small piece of the financing sector. one that has pote

fed builth that would mean that we no longer have any pretense of an independent fed john you have to remember the federal reserve is a creature of congress and answers to congress the fed likes to style independence as independence of both the executive branch and of congress which is nonsense it is an independent agency independent agencies in the federal government that means independent of the executive branch the president can't come in and hire and fire you know heads of agencies it does not mean that the fed is independent of congress it is a creature of congress the congress can reach in and created the fed it can close the fed down whenever it wants the issue of consolidation is really an issue of transparency because the issuing members the parties the energies that are issuing the currency in the u.s. in the federal reserve are all private there are 12 regional federal reserve banks in the system each of which is private and so that's the real issue it's really a transparency issue with the consolidations we don't we want to look at those memos and see what is it we consult

>> i'm just about ahead of my ninth birthday at the fed. i think you have to master the specific economics around monetary policy and if got to master payments and regulations. in terms of the pandemic, i would say this. the first and most important thing about the pandemic was health care policy which starts with the things we did the shut down the economy. not we, but the government did. get the pandemic under control and then get people to socially distance and ultimately vaccines. all of that was and is more than anything we could -- the most important thing we could do. the second most port thing was a fiscal policy. households are without an income. that wasn't a matter of monetary policy. that wasn't -- that would become important later. fiscal policy came in and made the difference in this cycle. then us, we were third. we had three goals from the beginning. the first of which was to stabilize things. we seemed to stabilize markets after what we did on march 23 of last year. also to provide some comfort and support the economy when

enable the fed to be more flexible. how are you thinking about a fed that might be looking at a wrong estimate instead of a range of scenarios? gershon: the fed does not know if inflation will be persistent. i agree, it will be transitory. noelle mentioned used cars. it is flights and hotels. the supply-side, what it comes down to is is the supply-side of the u.s. economy resilient enough? we are betting it is yes, but the fed is saying -- they are not saying it explicitly, but implicitly, the fed is saying we are not sure, we want to keep our options open. the risk of a policy error is there, but they are taking a wait-and-see approach. taylor: we will get to that credit conversation. the jumps on market remaining in favor of sliding equities. that conversation is next. this is bloomberg. taylor: i am taylor riggs and this is bloomberg "real yield." we are going to kick things off in europe. issuance topping 25 billion euros making it the fifth busiest week of the year. a robust start to the desk sales in the u.s.. alm

i think the fed hasn't. it is convinced there is just one outcome so it's baseline is having a very high probability of materializing where's the marketplace is starting to think more in terms of distribution of outcome that is tilted toward a hawker economy. jonathan: judgment or just the seat you're sitting in? the balance of risk, day-to-day. focused on the destination. >> that is due. remember, weeds to be forecast-based, which would i like to cost correct as you saw information come in. now the fed has become outcome-based. then you do not course correct as you go along. you wait for the outcome. what the market is realizing now is there's a downside to being outcome-based when there are structural changes going on. the big message of the huge data myths be it on friday or yesterday is when there are structural changes going on in an economy, it becomes very difficult for economists to forecast with any degree of accuracy. tom: i want to go to the architecture that we have right now. we do this in honor

, the market will start tightening ahead of the fed. and that's what investors have to and a half garrett if inflation numbers remain high. >> what if they don't? what if the fed is right are you convinced that that is the story here a lot of what drove the higher prices have to do with post pandemic phenomenons and trends, like airfares, and sporting goods tickets, and used cars, and a lot of distortion there because of what we have just been through >> yes and the fed is right in two ways but it is blind to a third one it is right there are base effects. it is right there are temporary mismatch between demand and supply also there are structural changes on the demand side and supply side that suggests this is a more persistent inflation trend than just transitory nobody is talking about the efficiency of aggregate demand anymore. we have so much demand in the pipeline it is going to last for a while. on the supply 150id you do have bottleneck issues, issues with better pricing power now among companies. the labor market you are gettin

we 2 million plus april jobs to see the fed changes. going into this one are we talking about asymmetric risk? yields lower on a disappointing trend because we need to see a bigger number to get yields to go the other way? lisa: i think the moves we saw edify that. janet yellen saying what she said, of the move was not that significant but if the fed were to act, that would suppress longer-term rates. it would suppress longer-term inflation expectations. the bias is to down siding yields and equities. frankly the bar is getting higher and higher. jonathan: nasdaq 100 futures positive by about a half of 1%. in search of a 61 .1% employment population ratio. we will talk about that going into friday. >> all that means is getting the amount of employees compared to the population back to where it was in february of last year. that's a jump. getting up to 2 million. -- getting up to 2 million is easy. i'd be stunned if we saw that. jonathan: here's the hard work we have to do this morning. price action quickly, i've been trying for years pa

it seems real because it appears the fed may be behind the curve. it's telling you it wants to be behind the curve but the prospects for higher long-term interest rates are clearly having an impact on growth stocks that's number one. number two, clearly i think the fed is, in my opinion, going to stay easy a long -- a lot longer than people thought. i think there's going to be upward pressure on long-term interest rates and that hurts long duration assets like high flying tech stocks and then lastly i really think it's very hard, very consensus but it's very hard to get bullish on the dollar mainly because we have a twin deficit, trade deficit and a budget deficit that's approaching 20% of gdp now you have to buy something else, done a lot of other great options in terms of fiat currencies certainly gold, copper, lithium, cobalt, a lot of other things, hard assets you could buy versus the dollar that are decent hedges against inflation >> we talk and you talk and we're really fed focused if you look at other than the private sector, it seems like th

the fed markets give the markets -- fed minutes give the markets plenty to think about. the

the fed will be there to help. we have to remember, when she speaks at such conferences, she was once fed chair. she carries weight. joe: we don't have an inflation problem but the fed would be there if so, but the fed will not need to be there. just a comment. i think people got excited. today was a more volatile day than we have seen in a while. we saw the stock market selling. we saw the vix gather a little bit of steam today. it had gotten over 20. over 21 at one point. ending under 19.50. a little bit of an interesting day. certainly those yellen comments making things more interesting. for more on the day's action, let's bring in bloomberg markets reporter, pretty pooped out. interesting day. not that bad really. mostly concentrated in tech. kriti: that is where it started. this is a continuation of yesterday's move. the initial pain started off at the beginning. right at the open. he saw that isolated to the big tech names and chipmakers. then it spread. energy opened in the green. all 11 sectors in the red.

there's a low supply why is the fed still buying mortgage-backed securities do you worry that the fed is stoking the flames of this hot housing market and hurting affordability? >> yeah, i think it's certainly true that the housing market looks extremely strong i hope that it elicits a supply response you've certainly got lumber prices being talked about a lot here so i think that when the time comes, that's something we could look at. but i think it's too early to talk taper here. we're going to let the chair open that discussion when he thinks it's appropriate. >> there's the head line, too early to talk taper. we've heard it from a number of fed presidents all day long. we thank you for your time, james bullard, president of the st. louis fed. always good to have you. >> thanks so much. >> we've got 35 minutes left in the session. the nasdaq is flat as we speak, the dow is down 442 points. >>> still ahead, tech investor d dan niles will join us to discuss the growth in tech stocks and where he sees opportunity. we'll take a look at what's driving the moves next check out some of to

the fed can contribute as well. using our tools, the fed promotes maximum employment and price stability, to foundations of a strong, stable economy that can approve economic outcomes for all americans. we view maximum employment as a broad and inclusive goal. those who have historically been left behind stand the best chance of [silence] >> it appears we have lost our signal from this event with federal reserve chair jerome powell. we hope to resume our live coverage shortly. this is c-span. >> unfortunately, we are not able to fix the problem with our live signal. we hope to have this entire event for you later on our program schedule, you can check online at our website. >> tonight, on the communicators, brookings institution vice president darrell west's cusses his book, turning point, policymaking in the era of artificial intelligence. >> is not just one revolution that is taking place, it is 10 or 20 or 30 different things taking place simultaneously. it is the growing ubiquity of technology in all of our live

what i found most interesting on the fed minutes though, was the fact that the fed members need to start talking about tapering here. charles: yeah. >> ever since that occurred in the moment, break even rates in the bond market, inflation rate expectations in the tips and bond market have been coming down. in fact the five-year break even rate has gone from 175 to 160 or something just in the last couple of days and i think that says something about where the market really is. it used to be that tapering connoted taking the liquidity drip out that would really, really be a bad thing. can the patient survive without it but i think tapering now might start to connote the fact if there is tapering, that means inflation expectations will come down which could be a bullish environment for the stock market. so in some regard what the market has been telegraphing is more that way. charles: yeah. i mean wouldn't that be something, if the market actually was excited about the notion you could take the training wheels off although it is hard to say $8 trillion whatever they created is training whe

the fed markets give the markets -- fed minutes give the markets plenty to think about. the crypto yo-yo takes another turn with bitcoin rallying after plunging in the same day. and the biden administration changes its tone on nord stream 2 saying it will -- saying stopping it is a long shot. the state department also wei ghs sanctions. welcome to the european market open. what did the market say to you? matt: it is a confused day in markets but it seems like traders are on the back foot. still in all of the volatility -- in awe of the volatility we saw in the crypto space. bitcoin has bounced back, but many cryptocurrencies are down massively. volumes in asia a little bit lower, more reluctant. we don't have a strong reaction yet -- direction yet. anna: we will get back to the big story in a moment. breaking news in london. we are getting numbers from u.k. corporates and easyjet is one of those headlines. pretax loss, 701 million pounds. that is less than had been expected. they are not providing further financial guidance for 2021. they are giving guidance on capacity

or the fed supervisor? >> so i think -- i don't have an answer for that today. that is something that i have given thought to. these are prctices that have obtained for decades, really. they become more important in recent decades with the expansion of the supervisory activities, and i think that we -- i think that we should be paying more attention to it at the fed, how to square that circle. >> thank you. i look forward to continuing to keep an intense focus on this. and i also want to thank you for a lot of the regulatory reform that you did to kind of ease the burden on the industry. i believe that you played a very important role in doing that, and i want to thank you publicly for it. thank you, mr. chair. >> thank you, senator. senator warner from virginia is recognized for five minutes. senator warner, i am going to slip into the finance committee as you do, and if you would next either call on senator lomas if she's there or senator cortez if there is no republican here, if you would do that. thank

that is the question for the fed. they get the white line down before the blue line goes up too far? so we are going to end up with this debate between the markets in the fed over whether the fed is doing too much to try to stimulate the economy. neel kashkari telling us today he didn't think that was happening. the fed is doing what is needed to stimulate an economy that needs the help right now. this is the average hourly earnings again, but look at what is happened in the markets in terms of the fed, since the fed balance sheet has been going up. we have seen stocks rise significantly. you can see it here, the white line is the fed balance sheet. the blue line, the s&p 500. yellow line, i never put bitcoin on the chart, but i did this time just to show you what has happened. the fed is putting all of its liquidity in the markets, and the fed is worried about a car crash. they said we could have a problem with some risk assets if there is, in their euphemistic word, repricing. these are the things you want to keep a

reminded us the fed is far from their goals. danielle, they're saying far from their goals, essentially we still have 8 million people unemployed. that is really now, they have a dual mandate. they're leaning on the employment part of it and ignoring the inflation part now. >> you know, charles, that is the criticism of the day. i will say that these minutes had a few surprises in them. we now know that various participants as opposed to participants meaning the consensus, various participant feel that it is appropriate to start talking about tapering. i'm paraphrasing here. the risks to the outlook are no longer elevated. they're a little bit more sanguine on the outlooks not quite as worried. there was talk about risks and overabundance of leverage among businesses could have a destablizing effect on risky asset prices. a much more hawkish tone, charles than i think i think a lot of market participants were expecting? charles: really? >> i think that is the reaction you're seeing right now in the market. charles: i think when

. >> this is what the fed is telling us. >> it keeps the fed dovish. >> joining us now is -- joining us are our guests. i'm going to go through each one of you to get a reason why we got such a big downside surprised. parks there were a number of factors at play. seasonal adjustment, the shortages keeping some of the factories closed. were not going to get a robust rebound in jobs until we get the schools open again. you have a lot of parents at home working. they're trying to work and balance virtual school. they can't get full-time or affordable or available childcare to allow them to go to work. for some things, you have to wait it out there's not a lot of choices. the state and local government jobs, a lot of them are education related. it's not just teachers, it's food service workers, bus drivers. it's going to take some time, but by the fall, i think we will see a big improvement. >> i agree that we are going to see an improvement in jobs. i think everything has to be put on the table at this point. we were strong in jobs arch payroll. a lot of people reason that to ignore thi

fed richard, nice to see you >> i'm not a critic. i am a constructive commentator. >> okay, okay. but, look, you think the fed is doing too much, richard. you have criticized that >> well, just let's say this good conversation, here is what we can say the sign has changed we are now in a reflation, regrowth mode. we know the direction where rates are going to go. the ten-year is settling in at a nice little range here, somewhere between 150 something and 170. but as we go through time with the employment numbers as good as they have been -- you know, three states, california, texas and new york, created 3.3 million jobs in april to april so we know where things are going. we know it is going to happen to consumer spending. we have federal largesse still achieving the employment numbers now is much more possible. so i think the fed will be very tender here and very careful, but it is clear at this next meeting there will be some expression that comes out of it, probably in jay powell's press conference, that, yes, indeed, they've begu

the fed says it is unlikely to get out of control. g-7 nations target china as they single out human rights abuses. more bank earnings are due out in australia. results crossing into bloomberg now. cash profit coming at 3.4 oh yen aussie dollars, a slight beat. that income coming in at $3.21 billion. when it comes to the net interest margin number, indications of long growth given we have heard it. [indiscernible] giving the acceleration of the economic recovery. the rebound in australia, new zealand, coming in better than expected. that will help that net income beat. in tim -- dividend per share. that net income number at 3.2 one billion australian dollars. continue to watch and break down some of those numbers. we are also getting views from a ceo about those results. let's take a look at what else we are watching. this is the picture. we are looking pretty tepid. sydney futures rising to a record. stocks inching ahead. new zealand off by about 3/10 of 1% when it comes to that last traded number, futures looking pretty mixed in asi

we disagree with the fed on what they are doing right now. tom: we usually do not do this with you, but i will do it right now. mr. kaplan of dallas is of the off camp as well. are you suggesting he will not be so lonely in the coming weeks? stephen: i hope so. we are hoping we get a little change of tone out of the fed. that is what we are watching for. i think if they do it, they can let the air out of this gradually. if they do not, it will make a new high. we go from the 175 high. we are making higher highs and higher lows on that spread. on the stock picking side, we are focusing entirely on companies with pricing power. that is often our focus anyway. now, it is all the game. inflation can be good for some stocks. they produce high earnings. you have to name the companies that can deliver that to the bottom line. we thank that is mostly in the cyclical value-type stocks, not entirely. but you combine that with tech. we are still on this value train that we have been on since september, particularly within that, we think it is becoming a

the atlanta fed website. i hope you can enjoy it. >> everybody can participate thanks, president bostic for joining us >> it's a pleasure see you next time. >> all right becky, back to you, big deal of the day. >> that's right. that's what we've been talking about, steve, thanks to you. and bringing raphael with you. >>> up next, jim cramer's take on the at&t and warnermedia. discovery shares up by about 9%, they've both been up more than that but sticking in the green for both of them quk x"ilbeig bk. online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. the aflac post-pain show! aflac! what a day of upsets. ha ha. jill is certainly upset with that unexpected bill from her back surgery. aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly to help with expenses health insurance doesn't cover. ho

corn fed beef. that's what you want this goes all the way through the meat complex that ripples through a lot with soy, too for livestock. that's obvious i'm making that point that will ripple through when we talked to drucker today, i'll talk about that in a second with his wsj piece transitory maybe. maybe. certainly commodity inflation. i wonder what gold has perked up still amazing that hasn't been more of a red flag >> part of the reason is it is hard to get workers. not a shortage of pigs it is harder to get workers to do things like get the trees and get them cut and down. harder to get workers to be there in the processing plants stuff you never want to look and see how it is made it is interesting to see how much of that goes back to having people on the jobs and how much of that goes into wage inflation. it really kicks in we will see. >> meantime, one of the things that may help get people back to work is this news. fda approved pfizer's request to allow the covid vaccine given to kids ag

home holdings, etsy -- don't miss the federal reserve vice chair, they're talking, the fed meeting is over and they are clarifying their positions got to hear from the vice chair. >> mike, one comment on the market. >> wait for tomorrow's upgrades. >> there you go, that does it for "closing bell", "fast money" starts now. >> on the button i'm melissa lee this is "fast money" tonight's trader lineup guy adami, tim seymour, karen finerman -- steve will join us we hope tonight big names on the market getting whacked and how the traders are trading the sell off. plus lyft moving higher on the back of results, the call is under way, we'll bring the trade. later, social media stock slammed again today, is time to unfriend these names we're digging in first, did janet yellen just put the market on notice that higher rates are coming >> it may be that interest rates will have to rise somewhat to make sure that our economy doesn't overheat >> just hours later, the white house backed that up >> treasury secretary janet yellen on friday, she said in remarks, that interest rates will have to rise

expecting that the fed will be piping in earlier than expected. the implications on asia -- but also, from a perspective, the capital decides to go into the dm area, and this is proportionately pressuring the southeast asian economies, especially those that record a current account deficits that we saw. tom: to what extent are the food price rises in asia constraining central-bank reaction? christian: it is limiting additional room, and they are not cutting rates at this time despite the fact that covid is still spreading and there is downside risk on growth. i will keep a close watch on that. it is also reflective of market expectations and monetary policy, so the risk of asian central banks likely to tighten, but on this time, they still stay at this moment. yvonne: what sort of price pressures do you think that asian exporters are facing right now on the back of the rise of commodity prices -- is there enough power to pass these charges to consumers? christian: at this moment, probably not as strong. except for a few asian economies that relati

the eyes are on the fed -- on bitcoin. the eyes are on the annmarie: good morning from bloomberg headquarters in new york. this is "bloomberg daybreak: europe." inflation concerns since stock lowers as attention shifts to fomc minutes today. france gets back to business with non-essential stores and entertainment venues opening for the first time in more than six weeks. a leadership shakeup at jp morgan puts two women in a key role in pole positions to eventually succeed jamie dimon. manus, very good morning to you. 6:30 a.m. in the city of london. markets this morning are moving to the downside over inflation concern and whether or not the fomc minutes will give us any sense and importantly concerns about inflation, all the data shocks occurred after the april fomc meeting. it seems to be the same tune coming out of the fed. manus: absolutely. the question is, or markets pricing this route and inflations to your expectation, relative to yields? that is at a record. you take that and you take tips at a record negative. som

the fed when it comes to rate hikes? bill: the short-term rate isn't going to happen until the economy is at full employment. there will be a big gap from where they are starting and where they need to be to keep the economy from overheating. it seems to me that it is the most likely template. when they have to catch up, it is a rate much higher than is currently priced into finance markets. >> if we see the federal reserve moving quickly after starting to hike rates, will we see an intensifying of those moving that you just mentioned because of the differential with china? catherine: more than likely. from a correlation perspective, the chinese mainland offers the least correlation market with the united states. going forward, you will see a bit of volatility. what is really key is an economy's labor market. and also this consumer and business confidence, if it does pick up. >> when it comes to the rotation trade because of these concerns, where do you find the most opportunities? especially since value is not all equal

jeff, how will you presume the fed will recalibrate? jeffrey: the first thing is not any one single report is going to determine the fed change or its projections. the expectations are here for a string of reports. obviously this report has disappointed that. the fed's outlook was not to react to just one report. that is good news and bad news. we will move on. the report is very much at odds with all of the other data. clearly there is something going on. when we look across the broader ranges of the reopening economy, it is still consistent with a strong recovery in labor markets and the economy. the broader message from the broader range of indicators is what the fed will be looking at for determining their policy. near-term markets will react. there is positioning. near-term that will enter into sentiment. the longer run trajectory is still in place. lisa: bespoke investment saying this is the biggest missed relative to expectations for nonfarm payrolls going back to at least 1998. this is a massive ms. and it speaks to the mystery

pulling out, there's a lot of things the fed buys to this day and wonder why is the fed in asset classes like corporate bonds, was there a problem in corporate bond market no treasuries what happened. let's go down that path before moving on to toll brother earnings what happens when the fed pulls back is the market reaction stronger because it's prone to knee-jerk reactions? and the reality is if they do stop purchasing the impact is really not that reat i don't know, tim, what do you think? >> well, the fed was stepping in seemingly to support credit markets as well, especially ones that tend to seize up and liquidity dynamics, those trickle through in money market and commercial paper, that was their argument again, going in and buying apple paper when apple's rushed to market, by the way with the best balance sheet, we're not attacking apple, but a lot of it hasn't really made sense the issues for credit markets overall, look, we get back to whatever normalized is, maybe we get to mid-2022 when i believe some of the sugar high of a double-barrel stimulus plan and throwing money at th

some fed heads talk about inflation. warren buffett and charlie munger talking to becky over the weekend with the virtual meeting. jim bullard said we could hit 75% vaccination and we could taper in the rates we could hit that number based on math in july. is there any chance, any risk, i guess, if you want to call it that, rob, that the fed reverses course and starts to raise rates a lot earlier than the market thinks that could be the temper tantrum that rocks the world >> that is the biggest risk out there, brian fed watchers are pursing chairman powell's comments he will at least drop hints that the $120 billion bond buyback program will be tapered. the most recent fed meeting would have been a perfect opportunity for that the commentary will stay the course when those comments first come out, i would expect we'll see some type of minor pull back in stocks >> rob morgan of sethi good to see you on the tuesday morning. we'll see. maybe not the summer of love, but higher rates rob, thank you very much >> thanks, brian

the fed money. and it will show how high it will be to force them to react. she's talking about material, and the increase in inflation. it is going to be much later in time. mark: good morning. so you think at some point we will probably see the transitory side pitch when inflation starts moving enough. when exactly do you expect that to happen? what's the timeline for us seeing a large enough move in inflation expectation that people start acknowledging that maybe it's not transitory? >> when it comes to central banks, for example, the fed will start to taper next year. i think over the next few months it will seek the message. the new strategy implies the data. it's not about the outlook, it's the outcome. and that's historical for the kind of preventive fashion. central banks used to tackle inflation. and in a way of promises to remain behind it. but because you expect inflation to come in. which i think increases the chance of it coming in with respect. but with these materializing in the way t

the fundamentals would suggest that the fed is doing too much, right? we are expecting an economic boom we are already in one, and yet the fed is so accommodative. how do you play that well, if rates are going to be where they are, it is what it is you play the market long does that make sense to you? >> it does make sense, and it is exactly what you should be doing. let's take a look at some of the recent auctions. as i mentioned last week, we had the four-week note that was over subscribed four-to-one it is always oversubscribed. it was a big cover guess what was the rate in the rate was zero. yesterday we had the 42-day money management auction, only 40 billion, but it came in at virtually zero again, a big cover on it so the world is awash in liquidity. we have soon the bunds, they've started to move up, they're still below zero but you have real rates here below zero the encouraging news for the market is as the fed talks about tapering as you point out, the market has held its level. however, that's where we are right now. let's talk about when we

dollars the treasury the treasury tries to stay quiet and let the fed which only has power over credit it can't print u.s. dollars so it lets the fed do all the you know be the puppet like this kind of spokes person that's always speaking up the dollar whatever but yellen of course janet yellen who's the treasury secretary now used to be the fed chairman was she's now she set off a panic by saying you know we could raise rates if interest rates gets you high of course that's not their remit of the treasury at the moment but it caused panic is like is this what they're thinking is this what's going to happen and just the fact that it's not prices going parabolic like that isn't telling people already that there's inflation like why do they why why are they getting panicked because the treasury secretary points out what is obvious she's obviously watching kaiser report oh if i recall my dog. the book. death of ivan ilyich it's an interesting parable about a man who witnessed his dead but apparently but he can hear the mourners talking about him his life that would be interesting yeah yea