Jay Powell, Bloomberg, United States discussed on Biz 1190 Overnight featuring Bloomberg Radio

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Ours is to does the fed turn a little softer. Do we get an agreement on US China? We have something else in common Powell, they right size their portfolio. The latest business news wherever we feel on Muskie's reinventing the manufacturing process of SpaceX on Bloomberg radio, the Bloomberg business app and bloombergradio dot com. Bloomberg the world is listening. Welcome back to the best of daybreak Middle East stocks across Asia, kicked off the week with strong gains as a soothing Federal Reserve comments and an easing of monetary policy in China that followed on from a bumper session in the states. The previous Friday were a blow jobs report boosted sentiment along with Jay Powell saying the fed policy is flexible officials are listening carefully to financial markets. We got more with UBS wealth management global chief economist Paul Donovan. Two things the first on the most important at least as an economist is the economy and the economy is doing just fine. Yes, it's going to be slow this year. The last year. Of course, it's going to be slow last year. We had the author officials sugar high tax cuts that face this year. So we get a slowdown but with flowing from above trend growth to trend growth, that's entirely consistent with sort of eight to ten percent earnings growth globally. And then we've got the central Bank in the United States saying wait coming closer to neutral. We don't need to go into a tight monetary policy. We're not going to try and rip press the economy. And that's essentially what Powell was saying. I think they still got a couple of hikes in them. But I don't think that that's another thing for the markets to be worried about. All it's so good to see you this morning. I want to press you on Powell's comments because I think they're quite important, but notably the idea that policy flexibility applies also to the balance sheet as well as interest rates is this Powell trying to correct a previous communications error and should the fed be considering a pause in its balance sheet unwind, given the eco data that we've seen out of the US, which has really been quite.

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