Jay Powell, United States, Bloomberg discussed on BTV Simulcast

Automatic TRANSCRIPT

Your business landscape keeps ever changing that we are going to see an all out trade to does the fed turn a little softer. And do we get an agreement on US China? We have something else in common towel. They right size. Kept portfolio. 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 policies. 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 as an economist is the economy. The economy is doing just fine. Yes. It's going to be slower this year. The 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 flowing from above trend growth to turn 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 look, we're coming closer to neutral. We don't need to go into a tight monetary policy. We're not going to try and repress 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 settling 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 and its balance sheet unwind, given the eco data that we've seen out of the US which has really been quite.

Coming up next