Rob Kaplan, Federal Reserve, Bloomberg discussed on Balance of Power

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This is balance of power, Bloomberg television radio. I'm David Weston. Both the Republicans and the Democrats been talking a lot about what they would do for the economy. But so far, at least, it appears to be with the Federal Reserve has to say about monetary prize. That's really been driving the financial markets, including speculation about whether it might be close to giving us more forward guidance on rate something, Dallas Fed president Robert Kaplan told Our colleague Michael McKee today really isn't all that necessary and lead us. Not yet. It's possible that it will take a while to get to 2% technology technology enabled disruption in particular, are limiting the pricing power of businesses. And inflation has been muted for close to 10 years. We welcome that Bloomberg International Economics of Policy correspondent Michael McKee, and of course through Rob Capitals talked about there was not at all forgotten. It was when we get to 2%. Mike, Don't you tell us what you got a really terrific interview with captain today? Well, he did say that he didn't think it was time to do forward guidance basic as the economy is still expanding, although at a slower pace, and that's the Fed's concern right now. Pretty much. Everybody on the Fed agrees that what you need to do first is control the virus, and then you'll be able to get people back out and spending. We saw that in the data that came out today, income and spending you could see that They're both up, but they're not up a lot, and it has been slowing as we've moved through the summer. This is July data. June It opened up and we saw some gains. But now we've started to see a little bit of a fall back and even in July Unemployment compensation fell 7.2%. So with August and losing that $600 extra unemployment, David, we're going to see incomes drop even further, which is more a problem for getting the economy going at the same time. It seems to not be going as fast as it was before. But I thought Rob Kaplan told you that maybe some of the high frequency data were maybe taking backup of it again. Yes, we did see a real decline in July into August, which was the last time we talked to him. And since then, he said, mobility data say in plain mints, even restaurant reservations, starting to move up again. And, of course, he's The central banker in charge of the Houston area, and Houston was one of the hardest hit cities Texas, one of the hardest states during the month of July, So things are getting a little better now. This is an interesting chart on the other data point that came out today. That's the University of Michigan sentiment. It's still relatively strong. Unlike the conference, more data, which dropped but you could see there's a big difference, depending on the party. You belong to the red Line of Republicans. The blue line are Democrats. And while if you look at the far right hand side while everybody thought things were bad in the early part It's jumped up a little bit more for Republicans to different countries, even when we look at how we look at the economy, Thank you so much. The Bluebird Michael Maquis were much more in the economy tonight on Wall Street Week. That's at 6 P.m. Eastern time and coming up here, We're gonna have more of my conversation with Home Depot co founder Ken Langone. This's.

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