FED, Bloomberg, New York discussed on Biz 1190 Overnight featuring Bloomberg Radio


Of the minutes. The New York fed president Joan Williams had this to say about the right path. Growing trained inflation low below our goal. I think to be basically right where we are in terms of interest rates. And I don't see any strong argument today based on what we have seen in the data or other information to argue to move interest rates one way or the other. Joma names from the New York fed, pull gambles, as August co-founder a managing partner at N B N G group and he joins us from our buying coke shoe. So I mean a host of voices from the fed trying to preach patients Britain, essentially the market is like a bullet train. It's racing ahead on rate cuts. And what are they seeing that the fed is not seeing who's right? I think the thing all these things that we were just talking about in the previous segment. I think the thing that liquidity shortage. I think they're saying, you know, global trade falling. I think the saying endings bullying. I think the thing you know, household, income's, fully the markets, look at all the same day to the fed is, and the, the fed is somehow preaching, this message of patients and the market doesn't believe that the, the two key questions, I think, for this year we're gonna be fed gonna whack ten time. They're going to cut rates some point this year, but they're going to do it quickly enough, and are they going to provide, or is, is the policy gonna provide fiscal stimulus quickly enough? Because we've seen in China now that the unites eighteen months fiscal policy, and it's not really having traction yet. So there's a real risk that the fed end up being being too late. And the second question for for equity markets, is, you know, this supposedly invited comes dumb money sitting on the sidelines. Does that get there in time does all the smart money, leave before the dumb money arrived? So they, you know, for between the about sequencing that tea big questions of going to dominate the the next month. So I've ever laid it question, which is the fed does seem like it is quite focused on asset prices at the moment, and it has expressed some concern before about financial conditions. When those titan too much just before the end of last year is there a possibility here that the market can sort of sway, the fed one way or another, the market can jawbone the fed towards a rate cut? In a sense, you'd hope. So always think so far, is, is one five bits. I alka that's, that's what we've had since Pallister -posedly had is, is demonstrating conversion in, in December so can the bond market forces. You would you would hope so, because, you know, the bull market generally has a much better. Take what's going on? Then the fed does. And, you know, most most recessions, generally caused by the fed getting there, too late. And that really is the, the big worry them if they want to, if they act now they probably can do something to, to, to delay this on the bond market is probably the biggest force, that's pushing the fed right now, except for the amount of tweets that they get from coming out of sixteen hundred Pennsylvania Avenue. We talk about dominating moments. What's your take on the bond market become Bank of America? They're losing to face the mocking to misery. They say that cutting the bond youthful to the end of the city. Grid say we've gone too far too fast. I'm going to get back to two point six percent. Two point three two point six which one comes first in your mind. I wouldn't be surprised to see a retrace back towards people say, surprised that it that it hasn't happened to me is, you know, we, we were buying longer. Treasuries from when the ten year went above three hundred bits last year. Seeing looking great deal at the time we've held onto those we're actually any treasuries that we're adding now looking at adding shelter, and just because lightly concerned about short term that could be some retracement, but, you know, long term the stories in place. So I think I think that both right. But I think we probably see to sixty before we see two thirty. All right, Paul. Gambles. N. B N G. Thank you so much for being with us this morning. Well, one feature on the Bloomberg that we would like to bring to your attention is our interactive TV function. You can find it at TV go, you'll not only able to watch us live. But you can also see previous interviews dive into any of the securities or Bloomberg functions that we talk about, you can also become part of the conversation, of course, by sending us instant messages during your shows, if you have an opinion on where rates should be.

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