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

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Keeps changing. To see an all out trade. Does the fed turn a little softer? And do we get any agreement on US China? We have something else in common travel day right size. There. Kept portfolio we seek out. The latest business news. Musk is reinventing a manufacturing process and 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 where a blowout jobs report boosted sentiment along with Jay Powell, saying the fed policy is flexible and officials are listening carefully to finance 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 than last year. Of course, it's going to be slow last year. We had the artificial sugar high at the scouts that fades this year. So we get a slowdown but with slowing from above trend growth to Trenberth 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 look, we're coming closer to neutral. We don't need to go into a tight monetary policy. We're not going to try in the economy. And that's essentially what Powell was saying. I think they still got a couple of heights in them. But I don't think about sending for the markets to be worried about. Paul. 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 how 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 strong lately..

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