Jim Bullard, FED, Greg Jarrett discussed on Bloomberg Markets


That's getting to look I used to always make fun of Americans worried about high gas prices when I lived in Berlin because I was paying like 5 or $6 Per gallon No per gallon I did the conversion and I can't swear that I did it well But that's what I figured I was paying Now you're getting there So you're getting to European levels whereas it used to be that the U.S. was far less than half It's so bad It's so bad math that I'm getting out the skateboard and trying to remember how to use it That's what I was thinking Everybody just kind of biking to work I'm going to guess though Greg that you will not go electric You know I'm a little nervous about that Internal combustion all the way for Greg Jarrett all right thanks so much We appreciate that All right today is fed minutes day and here Bloomberg and radio We think that's kind of a fun day so we get excited about 5 minutes So does our next guest Danielle de martino booth CEO and chief strategist for quill intelligence former adviser at the Federal Reserve bank of Dallas Danielle what are you really looking for this afternoon when we get a look at those fed minutes Well I'm going to be looking for the cas And I use that word carefully The tacit concession made to the bears made to Christopher Waller the former research director of Jim bullard at the St. Louis fed who's now our governor and master and George and others who have been insistent that the Federal Reserve does not belong in the business of housing of the word we would use internally when I was at the fed was credit allocation So it's an inappropriate place for the fed to be and it has been for about a year and the only nod that we saw to them in the minutes was that they said specifically We're going to get out of the housing business We're going to get out of the business of mortgage backed securities and focus more on treasury So I'm interested in that conversation and how that went down because I think it's what prevented a descent Yeah a lot of people though are getting downright angry that they're waiting this long to make those statements And that they're waiting until the March meeting to make any moves Inflation is at a level where I'm getting I'm getting text messages from viewers who finally figured out my cell phone number And there are a lot of expletives in them What do you think about the possibility of an emergency meeting or a 50 basis point hike in March You know when I saw and I was actually I was gratified that Jim bullard stood by his position on Monday morning And because it at least seems to me that there are at least a few people inside the fed who are not insensitive And that's the word that I'll use So it's all good and well to come out with an emergency rate cut in March of 2020 when investors are being in the crosshairs But it's not okay to come out with an emergency rate hike to answer the plight of everyday U.S. workers And that's to me it boils down to being white and black It's as simple as that We will come to the rescue of investors We will not come to the rescue of U.S. households And the fed is mandated to make policy in the public interest and to suggest that when we've got the gallows humor going on about skateboarding and relearning how to do that and gas prices are hitting $4 a gallon It's just again the word that comes to mind is insensitive $5 a gallon We were talking back at $5 Good gosh So Danielle I mean when we think about inflation and the fed I'm not even sure the feds in that business isn't inflation this time around primarily supply chain driven So is this a good point Maybe it's something that the fed can't address Yeah How do you think about that You know I don't think it's supply chain driven We saw production this morning increased by .2% once you got rid of the costs for heating oil and gas So I don't buy that I think that the supply chain disruptions are coming undone We're seeing inventories be replenished And on the other hand 42 million Americans got a 25% bump up in their allocation for food spending on October 1st And that's why despite world food inflation being off the rails It's even more off the rails for your average American family because the U.S. government has put so much fiscal spending out into the economy So we have to look in the eye the fact that fiscal spending and there's been countless empirical studies done on this When you give people money directly deposit cash into the hands of those with the highest propensity to spend it they're going to spend it and they did And inflation is lagging So it's dragging down growth even as the fiscal stimulus has largely gone away Can I just ask you quickly about Sarah bloom Raskin What's your take on the kind of job she'll do If she's ever confirmed Well and I think I really do think it's a big if people don't quite understand the importance of pat toomey sticking to his guns and saying I'm self imposing term limits And so time and again he's been able to actually do his job And give the scrutiny that's needed to certain positions whether it was the fed's municipal bond facility that he insisted be shut down along those credit facilities in the December 2000 2021 at 2020 stimulus I think that there has been an inappropriate amount of disclosure And I think demanding questions as opposed to being placated with saying I'll sign a pledge that's never existed and.

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