this is the end of our coverage of the domination of jay powell. coming up later, there will be an interview on bloomberg technology with democratic virginia senator mark warner, who is a member of the banking committee. he will talk about what he think's about these nominations of jay powell and lael brainard. this is "balance of power" on bloomberg television and radio. ♪ television and radio. ♪ mark: christmas. your milwaukee, wisconsin turned into a scene of warner -- a christmas parade near milwaukee, wisconsin last night turned into a scene of horror, killing five -- when an suv went to a crowd, killing five and injuring 40 others. one officer fired his gun trying to stop the vehicle. closing arguments underway in the ahmaud arbery case. the 25-year-old unarmed black man was killed last year while jogging in a georgia neighborhood. the prosecutors said arbery posed no threat to anyone and the three white defendants decided to pursue him quote because he was a black man running down their street. closing arguments can day after 18-year-old

jay powell and lael brainard will also speak. coming up, u.s. equities advancing off the highs of the session. a selloff in the bond market. more on the market reaction, next. this is bloomberg. ♪ alix: we are two hours plus into the trade in the u.s.. financials and energy outperforming. we are watching oil after a report we might see spr release from the u.s. as well as other countries as early as tomorrow. also seeing a strong selloff in the bundle -- in the belly of the bond market. mary phillips, dimensional portfolio management deputy head joins us now. we get the headlines that continuity is the name of the game. fed chair jay powell, vice chair lael brainard, also a lot out of d.c. does this change how you look at the fed and markets at all? mary: for dimensional it does not. we will see consistency is great. the markets have appreciated this. the fed is one of millions of data points. that information we will incorporate and keep doing what we are doing. guy: if we are going to see a more hawkish fed, a faster taper , rate hikes comin

there is pressure on the white house to pick a different fed governor, to replace it jay powell, and that that is what we have come down to, either jay powell will be reappointed or lil brainard -- lael brainard will replace him. it has felt like months now that it has taken the president to make a decision. but if we believe with the white house has been telling us, th ey will make a decision. host: it is hard to read what the fed will do sometimes. any indication if he does pick brainard, how the fed would operate differently in terms of policy? guest: it is a real question about monetary policy. the general consensus among the democrats pushing for brainard is, you can have the interest rate and other monetary policy policies that you like from jay powell, she will continue those, but you can also get more aggressive with financial regulation. that is the argument from the democrats who support her. one of the arguments from liberals i talked to that support jay powell is she is a question mark, we do not know how fast she will raise interest rates. and she might have a different

jay powell addressed them. i want to address them with our stellar panel here, danielle dimartino booth, dav markets art a little bit. at 2:00 the s&p was at 4624. at 2:30 it was 4636. now we're at 4653. obviously we're moving up. all three major industries are up. bond yields, danielle. what is it going on? >> bond yields will not necessarily be a welcome development at the fed. i think it has to do with the fact they clearly opened the door being more aggressive in the pace of the tapering. his idea we'll be at maximum employment by the middle of next year. that was his out. that was the big question that was asked of him. we're not. we're not going to be at maximum employment in middle of next year. doesn't matter if they finish the taper or not. he is not hiking. he doesn't want to hike interest rates because so many jobs have been automated out of existence. it is an inclusive unemployment rate by the way. charles: by the way, jay powell has said, might be two or three fomc meetings ago. he got frustrated,

powell and janet yellen this morning as jay powell says variant poses a downside risk to the economy. all that coming up, plus newborns find you funny earlier than you think big buzz of the morning you don't want to miss it. you are watching "mornings with maria" live on fox business. . it has our back. and goes out of its way to help. ♪♪ when you start with care, you get a different kind of bank. truist. born to care. i've spent centuries evolving with the world. that's the nature of being the economy. observing investors choose assets to balance risk and reward. with one element securing portfolios, time after time. gold. agile and liquid. a proven protector. an ever-evolving enabler of bold decisions. an asset more relevant than ever before. gold. your strategic advantage. mom, hurry! our show's gonna start soon! i promised i wouldn't miss the show and mommy always keeps her promises. oh, no! seriously? hmm! it's not the same if she's not here. oh. -what the. oh my goodness! i don't suppose you can sing, can you? ♪ the snow's comin' down ♪ -mommy? ♪ i'm watching it fall

saying i have no problem with leaving jay powell that the helm. jay powell has been in the middle. i assume leave him where he is. those are the comments on twitter. twitter is available and you can reach us @cspanwj. in seattle, washington, the democratic line. dave, hello. caller: yes. i think the one thing the president has nominated mr. powell as he doesn't need a nasty fight. if he tries to nominate someone else they will have a hard fight over it. i believe that interest rates will definitely go up. they have to go up. every time powell wanted to raise interest rates trump would call him up and say no, i will kick you out of your job if you don't keep the interest rates down. host: when you say expect a fight, what with the fight be over? caller: what was that? host: you said that there would be a fight if someone else was chosen. what with the fight be over? caller: it is quite obvious. donald trump does not want interest rates raised. i think mr. powell knew that they should be raised if things were right. -- work right. host: you said if jay powell was renominated under th

it is jay powell. he has been renominated along with lael brainard who has been renominated as the vice chair. we will see how your nominations pass through the senate by lawmakers in washington. jay powell is expected to be cleared relatively easily. we are also talking about oil of course. we have this class being set up between opec-plus and the biden administration as the u.s. and its allies in south korea but also the likes of china and india as well look to release their reserves as opec-plus is pushing back on that. i want to point to what is happening with the single currency. the euro-dollar on the back of the news that fed chair jay powell is likely to get this second term. and you saw strength in the u.s. dollar on the back of a national holiday so we do not have trading in u.s. treasuries at this point but you did see yields inching above 1.6 on the u.s.. 10 year yields were higher as well. this chart shows what is happening in terms of the single currency. the weakness -- the euro is at it

a lot of people thought jay powell did well. he responded promptly and forcefully when the economy started to crater and the covid shutdowns and the pandemic. flooding the economy with cash. now, of course, now we have a problem inflation possibly a predict being result of all of that and other policies as well. so he faces a challenge of trying to get inflation under control. no matter what wind says we are going a tack inflation. when you attack inflation, there is no way to do it when it is a pleasant experience for the economy tore the people in it. it never has been. so, this is -- it's often described as taking the punch bowl away which is a rather gentle way of saying that you are going to make money tighter and it's going to be tough for people. that he was the challenge he faces. i suspect he will be confirmed. elizabeth warren notwithstanding. >> bret: trey, putting the lulus aside, jay powell obviously has an uphill battle here and he is, you know, some people argued that he didn't act because he wanted to keep this j

jay powell warns omicron threatens employment and inflation. jack dorsey steps down as the ceo of twitter. his successor will be the youngest ceo in the s&p 500. there is a from the modernity ceo which talks about the veracity of vaccines against this variant. this is setting off what two people said is a shock. it looks like we are at the start of a new reappraisal of risk. dani: let me read this line from the ceo of moderna, saying, i think there is no world where the effectiveness is at the same level with which we had with delta. that is what set off the risk market turning, it is a global fixed income market that got a rude awakening, and a stock selloff after recouping losses. it is oil and every risk market starting the morning positive and taking a spoon for the worst. -- a swoon for the worst. manus: currencies are immediately reacting. you have the aussie down, the canadian dollar down. if you look at oil, down two 2.25% after a rapid turnaround yesterday. equities are lower. dani: i think mark cudmore make a good point about the acti

that is when jay powell also said. are we are now is not comparable to the kind of lockdowns, the kind of disruption the pandemic caused the economy. as the guest just said, markets have to go on. we are going to have this variant around possibly into 2022, 2023. haidi: kathleen hays there. don't miss our interview with the cleveland fed president. she will be weighing in on the new policy path forward. let's get you to vonnie quinn. vonnie: disagreement among drugmakers over how well covid-19 vaccines will work against the omicron variant has rattled global markets pre-oxford university says there is no indication existing shots will not provide some protection. the beyond tech ceo -- the biontech ceo said current vaccines are likely to shield against the vaccine. -- against the disease. chinese -- the chinese vice from your says his countries economic growth that his countries economic growth is likely to exceed -- he said china's recovery -- china's economy is likely to recover. he promised beijing will create a bet

the timing laid out by jay powell. when it comes to the bank of england, markets are pricing in a high chance of a rate hike. economists are 50-50 on this. what is the market reaction to a rate hike if we get one from the bank of england? ven: from the end of july about six basis points from the two year rate, and now 70 basis points. that is a selloff that i cannot remember in recent years. that means the market is well-positioned for the bank of england rate hike whether it is today or december. what will matter for the markets is what the boe has to say on inflation, and what that means into next year and beyond. a lot will come down to what the bank of england's guidance is. considering how much we have sold off, i think markets may rally on the news as the dust settles. it could be difficult to forecast because it depends on what they say. as the dust settles, the risk-reward asymmetry is here. tom: inflation is front and center for the bank of england, and part of that picture is driven by the oil price. wti hold

we will be looking for details from jay powell. as far as where that takes us and what that means for the rate hike cycle. we are also having pushback from jay powell that you will see to rate hikes from the end of 22 by the fed. over in china, concern about the spread of covid. a surprise today within the chinese markets. let's check in on how things are playing. the ftse 100 is down. iron ore has come back. it should boost a basic resources. in terms of the breakdown, across the assets. u.s. 10 year is trading down. crude is under pressure as well. that is on the back of the push to get opec-plus by biden. it is currently down. iron ore is up 3.3%. csi 300, i want to bring it to your attention. currently at 4821. let's get the bloomberg business flash. laura: a surprise profit in the third quarter. its first as cargo demand boomed. the german carrier says they will keep earnings positive. facebook met up platform say they will no longer use facial recognition. this is over privacy concerns. meda says they need to way that benefit

joe manchin talking to jay powell, etc.? annmarie: it is normal the fed chair or governor would go to congress and meet with senators and lawmakers. what is interesting about this joe manchin/jay powell meeting is in august 5 senator manchin set a letter to chair powell saying we should not over prescribe the patient, the patient being the u.s. economy coming out of a once-in-a-lifetime pandemic that needed incredible help of monetary support. now he is saying that inflation was going to be a problem, he wanted to make sure the fed was pulling back on treasuries. now he says he looks favorably on jay powell. he is done a 180 when it comes to how thinks about jay powell and potentially this could be a key vote for the president as he is making his decision on who he will put in the top spot. guy: we are looking for news with a great deal of anticipation. we have a chat coming up later. what will come out of it? annmarie: we are not going to get a joint press conference. it does seem like the tone will be a little bit more fri

thatcher jay powell renominated for a second ash fed chair jay powell renominated for a second term -- fed chair jay powell renominated for a second term, and vice chair, lael brainard. we will get comments from peter praet and jan hatzius. the question is, now what? guuy -- guy: clearly there was some brainard in the price because you are seeing a stronger dollar and yields going higher more broadly. so maybe there is a view that may be powell on balance, and i agree it is absolutely marginal, may be a little bit more hawkish. you've got to think about maybe an earlier taper. that process i think is going to be interesting. the next press conference is going to be fascinating. maybe he will talk about some of this. i very much doubt it. i wonder whether the delay has undermined powell from the get-go. i appreciate that he is the continuity can't and it -- continuity candidate, but has this delay undermined him daca -- undermined him? what does he do for the president? alix: the position for president biden, he is trying to get this human infrastructure into the senate. i'm watching t

the renomination of jay powell as i second term. -- as a second term. lael brainard takes the vice chair position. many felt she could have been a little more dovish. expecting a rate rise as soon as june 2022. while yields are back up, they rise. the bank index does well. thanks benefit when we start to see a rise in interest rates. your underperformer in terms of commodities, gold. we start to see less need for an inflation hedge. bitcoin is your inflation hedge. we see the risk off sentiment in terms of growth. let's have a look at what we have in terms of the s&p 500 falling off its record high. we solve -- whistle risk aversion come into the market. this is a short week. we see people start to take a well-earned break. the yield had an all-important auction. new supply comes to the market. yields push higher to the tune of seven or eight basis points. that factors in, the fact we might see rate increases. that moves the shorter end of the curve much quicker. we saw yields rise much quicker. inflation rates may push back. we saw the real yield a key

why is jay powell not ready to do this. listen. >> we don't meet the liftoff because were not maximum employment. if we do conclude that it's necessary to do so, then we will be patient but we will not hesitate. liz: patient but not hesitate. let's bring in our fed expert, brian westberry, michelle gerard, markets cohead of global economics and back by popular demand, the present who was here yesterday show, here's what he said. >> there so far behind the eight ball list is embarrassing and i hope they catch up as soon as they can but i just don't see it happening tomorrow. liz: that is indeed the global fixed income head, andy are they closer to catching up or still well behind the curve? >> it's not only still well behind the curve, the getting further behind the curve, the idea of bringing transitory not addressing inflation, we saw a nice shift in the oak curve, at 2:00 o'clock we are seven platter and they reverse the seven basis points another steeper on the day. what it tells you, the stock market picked up on this,

matt: even i was surprised listening to jay powell's testimony and it didn't sound like jay powell much of the time and that's what has caught the market slightly off guard. coming up, we will get more reaction to the fed chair powell's remarks and we will cover the markets wall to wall program. we speak with the head of macro research at barclays next. this is bloomberg. ♪ >> the economy is very strong and inflationary pressures are high and it is therefore appropriate my view to wrap up the taper of air asset purchases which we announced at the november meeting, perhaps a few months sooner. amand welcome back to bloomberg markets. jay powell causing a lot of controversy for the markets. is there overreaction happening? what powell went on to say is yes, we see in elation and will stop saying transitory but we need new jobs data and there is a variant of foot. >> i think this was a significant change in tone and i would argue that it started mid last week when a fairly noted changed her tune. the most interesting part after that is the testimony moved trade past that. this is a chang

does this sound like a more dovish powell? kathleen: this is jay powell. there has been a lot of talk about the fed moving up the rate hikes are tapering faster. we had rafael bostic telling us last week that he would, at repeating that on friday after the emergence of news on oh micron. he has been dovish all along. these prepared remarks for his testimony for two days, the senate banking committee on tuesday, the house on wednesday had very important, brief, but important comments. the recent covid-19 cases in the emergence of the omicron variant. he did not shy back from mentioning it. economic activity and increased into your inflation. look at the labor markets. if you are more concerned about the virus, you may not be willing to go to work in person. there has been talk about labor market shortages because people need to stay at home and it could intensify supply chain disruption. he sees more ground to cover to reach maximum employment. he does see factories pushing up inflations well into next year, but it sounds like it's transitory. be patient, w

i want to start with the reappointment of jay powell. what it means to the fed's ability to execute policy. a lot of people are saying without the cloud of uncertainty hanging over the fed, without the possibility of some political pushback, depending on how aggressive they have to be in the fight against inflation, the fed now can really look at what is going ahead and move ahead more definitely. what do you think? raphael: first of all i want to say it is really good to see you again. i want to also say that this decision really does take some uncertainty out of the federal reserve as an issue. that is helpful for all of us. it means we will be able to spend 100% of our attention and focus on trying to discern what is happening in the economy. i will also say i think the president made a fine choice. both chair powell and governor brainard are very experienced, polished and effective policymakers. they have both managed this institution through turbulent times and with a lot of uncertainty. i am looking forward if they are confirmed to

i think everyone expected the be president to reappoint jay powell. i think the vice chair role is also no surprise, except i thought there was a chance she might be named vice chair or banking supervision. we'll see what her role is as vice chair itself but the two of them are at least historically been in pretty much lockstep on monetary policy so i don't see any big surprises or differences of view going forward. we'll see how each reacts to the new issue of inflation breaking out and that is yet to be seen but i don't expect any big differences there. maria: you know, it's a great point you make in terms of bank supervision. tell me about that role and what you think will happen there and what will lyle brainard do? i mean, obviously she was a the pick of the progressives and the fact it took so long to get the confirmation from joe biden had many people saying well, maybe he is going to go with the progressive pick of lyle brainard. he did not go that way. what is the difference in terms of vice chairman? what will her oversight entail. >> i thin

plus we break down the comments from jay powell. and we will bring you the latest on the crypto markets with the chief strategy officer for coin shares, which focuses on digital asset investments. first, a quick check at what's going on in the markets right now. the s&p is down, stocks can fall after eight days of new records. it's a drop of 22 points with a drop on the dow jones industrial average. the u.s. 10 year yield comes down a little as well as investors purchase treasuries across the curve. the 30 year is at the lowest level since july. the bloomberg u.s. dollar index is right now unchanged with nymex crude coming up. that inflation and the inflation of prices at the pump as well is a big focus for markets this week. let's get back, though, to the story at general electric. those shares skyrocketing as they announce they are splitting into three separate companies, ending its iconic conglomerate structure. joining us now is nicholas heyman, analyst at william blair who has an outperform rating on the stock. i say iconic, so

jay powell saying it is time to be patient, but some worried he is making mistake? >> yes, inflation is rising. bill dudley just brought up a question in the last hour. inflation gets higher, and expectations entrenched, and it gets harder to get inflation to a stable level, and even lower level, but again, he stressed patients, optionality, and was clear. he expects inflation to be transitory. he says some people have problem with that word. he says it will not have a permanent impact on the economy, something he thinks will go away , but he does agree it may last longer. in fact, it may last well into next year. he also stressed this is not your traditional phillips curve inflation could this post-pandemic inflation. he said a lot has to do with the price constraints that create a lot of uncertainty. >> it is difficult to predict the persistence of supply constraints or their effect on inflation. global supply chains are complex. they will return to normal function, but the timing is uncertain. >> he also repeated something the fed has been making clear for a whil

stuart: the market likes jay powell. susan: i am a bit disappointed, i thought that they set the tone and the markets for putting in somebody new like lael brainard. the fact that you have the new name being brought up over and over again i think that was testing the markets and investors on how they react. stuart: the progressives are not what be happy they wanted lael brainard. the supply-chain issue, let's look at apple, 162 this morning. is the supply-chain issue hurting apple? lauren: obviously not. we have the news reporting this and they do channel checks across asia and what they say is apple won't be able to deliver new ipads in time for christmas and key asian markets. the good news the iphone delivery delays are not as long, so far in a typical year but i don't think this is new because you heard the consensus from the executive team and i spoke to the master means that they will try to reemphasize, save their parts for the iphone which makes up 50% of the revenue. i stopped to give ketchup for apple stock, it

on the back of the fed renomination of jay powell, the dollar around 16 month highs. taking a look across em's, the thai baht is leading the charge. we are seeing decent weakness when it comes to the rupiah as well. not there is the renminbi, continuing to see strength. whether we will see diversions continue is a question. as china looks to stem fears over tennis star peng shuai, it is trying to block social media and television back home. details ahead, this is bloomberg. ♪ rishaad: we have china's affix to reassure the world that punk shay -- peng shuai is safe, not really pleasing everybody. yvonne: let's bring in our opinion columnist. she's here and says beijing's actions are clumsy and making things where's. -- worse. why has it been so hard for china to manage this? >> i think it's important to understand where china is at the moment as well as what we see on what's coming up. next year we have the national party congress which should anoint president she for a third term in office. this is a sensitive time in china where they will prioritize stability above

. >> you heard the president wanted the big reasons he said he accepted the fed chairman jay powell for a second term is because of unity and he doesn't want 70 polarizing. the president making the point that we can bring people together and both republicans and democrats like the fed chairman so he wants to keep it. they'll brainard is the right picture vice chair because she works well out of the pandemic. janet yellen was in the rude and she was the main backer for jay powell to keep his job, president biden elevated lael brainard number two in the federal reserve the progressives wanted her to be chairman because they believe she would be more heavy-handed when it comes to bank regulation and climate change in a source familiar with the decision-making tells me that they believe if you talk with democrats and republicans and moderate democrats as well as progressive democrats to come to the selection in both chairman powell and brainard were told about the decision on friday. >> we know high inflation takes a toll on families especially those less to make the higher cost of essentia

i don't want to see jay powell get replaced. i do think that there is probably, if i had to put all three of them up there, jay is probably the one that is most at risk. then they will give up on the omarova and sloan one. they will got what they wanted out of jay powell and maybe go moderate or center for the other two. i don't think they are getting those two anyway. lauren: for a while seems like jay powell is on the line. progressives want him out. progressives are not getting what they want. build back better is questionable at the moment so -- >> i think he might be, right? they may sacrifice him then they will give up on the other two. no way all three. there will be a revolution in this country if all three of those people get pushed up. lauren: kenny, give us some names, some stock names you're liking right now. >> i'm concerned going into 2022, because i'm thinking there will be some disruption, right? i tend to play it a little bit more conservative. i like consumer names, industrial names, caterpillar, ibm. i like cy

his jay powell on the verge of a policy error? >> we will see how things evolve. obviously if the inflation pressures turn out to be transitory and the federal reserve has more time, there is more slack in the labor market than suggested by the level of unfilled jobs. we don't know the answer to those questions at this point. the important thing is the federal reserve is making a choice to strive to find the maximum levels of employment consistent with her inflation objective. in doing that, there is a risk they will be late. kathleen:kathleen: you were the chief economist at goldman sachs. we worked with a lot of the guys on the bond desk explain the latest numbers. then you ran the open markets desk at the new york fed. a very important position before you became the fed bank president. how would the markets take it if suddenly jay powell had to say we have to speed up the taper. with that because the kind of disruption they have been trying to avoid? >> absolutely. that is one reason why the taper is locked in stone. i would be surprised if they sped it up or s

jay powell at pains to separate the taper from rate increases. we saw the s&p, nasdaq, russell 2000, and the dow all hit simultaneous new highs for the second day in a row. futures down less than .1 percent. curve steepening. powell confirming that bias that kicked off in australia. that risk-on attitude also means we are seeing some havens to climb. a little bit of dollar strength today and then brent crude down for a second day, trading around a one-month low ahead of opec-plus meeting today. the fed has finally unveiled its much-anticipated tapering stimulus. as for the timing of a hike, the message from jay powell is to be patient. >> it is time to taper with him because the economy has obtained forward progress towards our goals. our decision today to begin tapering our asset purchases does not imply any direct signal regarding our interest-rate policy. i don't think we are behind the curve. i think policy is well positioned to address the range of plausible outcomes. and that is what we need to do. i think it would be premature to raise rat

fed chair jay powell's were marks yesterday. we are going to break it down with mark cabana, head of u.s. rates strategy. this is bloomberg. ♪ chair powell: it is time to taper we think because the economy has achieved substantial for the progress to our goals. our decision today to begin tapering our asset purchases does not imply any direct signal regarding our interest rate policy. i don't think we are behind the curve. i believe that policy is well-positioned to address the range of possible outcomes, and that is what we need to do. i do think it would be premature to raise rates today. i don't think that is controversial. we want to see the labor market he will further, and we have very good reason to think that will happen. inflation has come in higher-than-expected, and bottlenecks have been more persistent and more prevalent. we see that just like every buddy else does, and we see they are now on track to persist well into next year. if a response is called for, we will not hesitate. alix: that is fed chair jay powell

david: do you think your ability to do that -- you and jay powell -- and jay powell is interested in that as well, you and jay powell are trained as lawyers. do you think there is a future for the central bank to be headed by lawyers? [laughter] christine: i strongly believe in diversity, david. diversity has not all to do with gender, sexuality, it has to do with the culture you bring around you. to bring it all together around the table improves the quality of the decisions that we make. i have learned a lot from my colleagues. i hope they can be patient with us poor lawyers. david: 2 final questions -- one, i would like to know what is the pleasure of being the head of the central bank? you obviously have to work seven days a week. what is the pleasure you get out of heading the european central bank? christine: it is the same kind of pleasure i take in leading other organizations, making sure that people around me are doing the best they can for the organization, delivering on their mission and we form a team heading in the same direction. that to me means an awful lot. david: my

breaking right now, jay powell setting the market into a freefall after purchases, this will probably happen in a couple of months, faster than anyone thought. just as the market was climbing off the canvas from continued confusion over how we should worry about the new covid variant. he slipped the scripts or should you flip your portfolio? i got the right substitute help you. meanwhile, welcome, millennial's and gently. decades of low inflation, your generation has to deal with the cost of them off. i will shall share my thoughts on how the money is in rising inflation. secretary yellen making comments i take serious issue with including the true cost of build back better. there's a ton of stuff to come through over the next hour, sit back, take notes but more important, don't panic. all of that and so much more on making money. ♪♪ the market likes to climb a wall of worry but i'm not so sure the worry, the market was in fact climbing up. jerome powell shocked everyone during his testimony to the senate banking committee. take a listen. >> the economy is very strong and inflatio

powell -- participants know jay powell but that begs the question, is the market relieved because he's going to continue to leave the punch bowl where it is, or are the markets relieved because they think he can be effective in stemming inflation? >> well, the market likes what it knows better than what it doesn't. and brainard would not be the first choice clearly she would be controversial and the market was saying at least we know this guy. we know there's inflation. the market is positioning itself with the understanding that inflation is here. it could persist and we've had this rotation where companies that are able to pass on some inflation, if you look at -- moves in netflix or crm, microsoft, these are all subscription models that have built-in inflation hedges and that runs across the gamut countries who don't -- and we're seeing that part of the market moves over the past six months it's why we would favor those types of stocks where you can be fairly sure that they can price more to their consumers, whether they're industrial or people in late positions or you have a subscr

jay powell 2.0 might be more progressive than advertised. i will ask larry kudlow if the market is misjudging the fed chair. president biden will release oil from the strategic oil reserve. all that and so much more on "making money." ♪. charles: so the market has become more anxious as investors contemplate a powell 2.0. obviously inflation pressures won't quit and government actions designed to dismantle prosperity in the name of social justice taking a toll as well. major indices have been able to mask massive internal weakness as megagrowth stocks lead the way. what happens if they begin to weaken? throughout the year investors fled to growth and energy and financial sectors and other sectors. buyers are wondering what they can do and if we can maintain buoyant in the market. president biden is occurred nating efforts with several other consumer nations to curb oil prices. here is the thing, the united states we'll release 50 million barrels after crude as part of that effort. if you think this idea goes way back to 1944, the reserve.

host: from jay powell, our tools cannot ease supply constraints. guest: that is the challenge for any central bank. what do you do when inflation is above your target but it is not necessarily due to things that are within your control, such as a supply shock? you can think of an oil price spike is a good example. central banking 101 would say if you do not -- would say you do not supply -- respond to a supply shock if it is something that will reverse on its own. monetary policy takes time to influence the economy. it takes time to speed up or slow down growth. if you think it is something that is going to go away in a year, if you raise interest rates now to pull down the economy that could take a year to work through the economic chain. by the time the economy is already slowing down because of supply shock, you would be slowing it down even more by having raise interest rates. 10 years ago, the european central bank found itself in a similar situation where they raise interest rates. they created a recession. that is the first mistake central b

jonathan: this is lisa: lisa: what we heard from jay powell last week. i wonder why we are not seeing more of the volatility affect equities. equities used to be the more volatile asset class and in some ways, the load yield environment underpins the various alternative trades that sent people back to equities. jonathan: equities this morning are doing ok. there is a move in the russian ruble that gets my attention. this year, the ruble has seen some real strength and we are starting to give some of that up in today's session after the united states warned europe that russia may be planning a ukraine invasion. they may be planning one. you can look at the bloomberg overnight for more details. over the year it's been about ruble strength. tom: there are three ways to look at ruble, dollar ruble, your approval in a convoluted basket which i have never understood. you go to dollar ruble but i wonder with the challenges of you crane and key have is only 60 miles south of the order in the challenges belarus is having with poland now, this is combustible. the

until all those pieces -- i don't think we could really say other than what jay powell has said now. romaine: still a lot of pieces to fall in place. we have heard from some world leaders who have said there is not going to be a full lockdown. nothing similar to what we saw a year ago where economic activity was ground to a halt. i guess there is a question going forward of how we live with this. that this is going to stick with us in some form or another and how do we live with this in a way that allows economies to still remain open to some degree , to still grow to some degree? >> i think that is exactly the question and the point is it is becoming endemic. and the way we live with that is the way we have lived with everything else that has become endemic. sonali: one of the big concerns chair powell is raising is this idea of the job market recovery. we have been torn between the job market and inflation already this year. looking more so into next year. what are the biggest damages that could be created to the job market as this new virus continues to transmit? >> there are two

jay powell keeping his job. jay biden nominating the fed chair to another full-year term and brainard is the the vice chair. >> a good team at the fed. >> this is sort of the dream team. >> i think this is a don't rock the boat move. >> certainly there is not going to be any conflict on monetary policy. >> this is the case the market expected. >> to not renominate powell would have been bad for the markets. >> it is not my expectation that we will get a faster taper. >> we still with the fed on wait and see. >> hike once you get to the end of -- >> we're at a point in the economy where staibility stability is really important. >> total continue knewity. >> continuity is a good thing to have at the central bank. that's what we're going to have. francine: thank you for joining us. let me kick off with you. you look at the dovish difference between brainard and powell. the markets not telling us that much. what would they have been worried about if brainard was in charge? >> i think the feeling, the margins that br

jay powell is not in pharma. all he can do to stamp out high food prices is raise interest rates that will cause people to lose jobs so they can't eat as well if he turns to that as prices going up, i'm willing to take the hit. i know people continue to bet against this market hoping that powell will do something f foolish. i see shorts all over the place. they're being taken out kicking screaming. two companies we told club members and investment club members to buy into the weakness or bed, bath and beyond which looks like another gamestop. that is bby. it could give you some good strategic news after the close and the stock is getting blasted. the bone headed moves won't help the short sellers. so the bottom line, if this market goes down tomorrow, that shortage is not going away any time soon. simply aren't enough chips to be had and there is nothing the fed can do to change that other than destroy the economy. which is a lesson of solution for fed chief facing reappointment or not let's go to terry in virgin

tom: i look at what jay powell will say today. totally unfair question. we hope you don't get the last question as you so often do. what will be the thrust of the four or five or six journalists in the room? what is the mystery to economic journalism right now that the chairman can give us information on? michael: it is the cap -- the gap's between the fed and inflation. the dot plot is not fair because that was three months ago. the fed can't change its forecast as fast as market participants, but the idea that we are looking at transitory inflation, and then it doesn't go away, is a difficult concept for the markets. when the fed says it is going to let average inflation rise for a while above the 2% target, how long is a while? the new framework is less clear than the previous regime. jonathan: it seems to me that economists are the only people on the planet scared of higher wages. i asked this in a serious way of you. can you explain why the fear of higher wages is so embedded in conventional economics? michael: because a lot of economics and the peop

we saw under the trump administration a lot of pressure put on jay powell and he didn't yield. i don't think he will to this administration. the fact is that president biden is trying to look at oil reserves, whether it's looking to address lack of full employment through social welfare measures. it's clear that jay powell is not alone as he tries to tackle unemployment and i think in a way that takes the pressure off. >> charles: so let's pick up on that as far as releasing oil from the strategic reserves. our oil has come down a lot anyway. that reserve is nowhere near capacity. what could of an impact would have on gasoline prices? short time would have an impact. is it mostly for public relations consumption? this would not change the course of where crude oil is and where gasoline is the next two months or so. >> consumers are feeling the pain at the pumps and i think the administration is trying to keep gas prices away from the $4 mark. one of the most interesting things about the global discussion to tray to control oil prices, the u.s. is reaching out to japan and china

jay powell's term as chair expires in february. president biden has said that he will decide fairly quickly on his pick to be chairman. he's met with both jay powell and reynard at the white house. the treasury secretary janet yellen is a former fed chair and has endorsed powell for a second term. dani: thank you so much for staying on top of the politics of d.c. and the fed for us. that's bruce einhorn. let's turn to china. alibaba bounce back with a record sale of more than $84 billion. it's a bright spot for the tech from which has been hurt with a $2.8 billion antitrust fund. for more, juliette saly joins us in singapore. walk us through some of the market reaction to the wider asia story. juliette: yeah. we are seeing asia stocks move higher on this alibaba number. certainly not the reaction that you saw in chinese adrs overnight. we've been seeing alibaba pullback from some of its earlier highs. jd.com a performing in the tech index, still pretty song -- strong. it has been outperforming what we've been seeing in the u.s. sin

that's when we're expecting jay powell & company, the federal reserve, to announce its plan to pullback on its $120 billion bond purchase program. our floor show geniuses are here to game out the exact scenario and perhaps just as important, what happens right after, to bonds, to stocks, and everything else. meanwhile, president joe biden going to hold a press conference this hour, after signing historic climate change agreements at the u.n. climate summit in scotland, as we carry it live, what you're going to see , because we've set this up for you, is is that you will simultaneously see which stocks and sectors are jumping and which ones might be dropping on this news. coal burning utility ceo turned clean energy pioneer david crane knows both sides of the emissions debate. he's going to hand down his verdict on whether president biden's plan is bulls or a bust and cryptocurrency investors never saw it coming, the squid token scam that just blew up in their faces and wallets, might now give the securities and exchange commission gary gensler the exact ammo he was looking for to crackd

alix: you have been listening to jay powell and janet yellen. a big highlight of the senate banking committee is what jay powell was talking about, the fed can consider wrapping up tapering a few months earlier because. inflation is more persistent and no longer transitory. data will come out before the next meeting when they could consider wrapping up the bond purchase program earlier than expected. they will be discussing it. the reaction is clear. the s&p has rolled over since the testimony started. the two-year in three-year yields jumping higher. the waiting is in the front end of the curb. they are buying on the back end. they could worry that potential hikes are coming faster and growth in the future. the dollar is trying to hold on. equities around the lows of the session off by 1% and a .5 basis point move in the two-year. back to capitol hill. >> will divide and administration say that's it? we cannot borrow anymore or it will hurt the american people? sec. yellen: first of all, i want to say that i disagree with your assessment of bil

he is re-nominating jay powell. they are speaking there from the white house. >> trace: i know that you are very much immersed in this, the whole concept of this is that you're going to have this with your financial panel. we should mention the lael brainard connection. a lot of people thought she might be the top job. he was nominating her to the vice chair of the fed. some controversy there because she is refusing to say on a couple of occasions whether or not she is a capitalist or socialist. that was kind of raising some eyebrows across the country. >> sandra: not a tough question. one or the other. when the president first began speaking, he did acknowledge that massacre in waukesha, wisconsin, yesterday. listen. >> president biden: we don't have all the facts and details yet, we know this morning that five families in waukesha are facing fresh grief of a life without a loved one. at least 40 americans are suffering from injuries, some of them in critical condition. an entire community is struggling, struggling

coming up, will he, or will he not reappoint jay powell? that is the question we keep asking and the one we want answered. resident item will announce his decision before the thanksgiving holiday. this is bloomberg. g. guy: i am guy johnson alix steel. this is the european close on bloomberg markets. let's turn our attention to what is happening. an hour or so into u.s. trading, about two and half hours into u.s. trading. that's a better way looking at it. we have been on air for about two hours. at a half-hour. two and a half hours. i should just read what is in front of me. save me. what is going on? >> i will save you. we will start with semi conductors because they are a mixed story. they are up half a percent, but you don't see more games because it is a mixed story under the hood. we will start with macron. a 7.6% rise. they were at the bloomberg new economy performance said that the chip world is easing but still persisting. it is getting better. another day of gains. as a lot to do with potentially nearing a $1 trillion market cap.

markets awaiting jay powell's press conference. what he will say about tapering, rate hikes, and michael mckee's question. this is bloomberg. ♪ guy: is not certain but it is looking very likely that the fed will announce a taper today. there are going to be questions that go with that announcement. the main one in my mind, what does the timing look like? trying to answer some of these questions, mike mckee joins us now. let's work through the mechanics. the fed announces a taper but the data is all over the place. is that taper on rails, is it $15 a month, or is it come as tiffany wilding was suggesting, is there the possibility they do more, they are more aggressive, they tweak it as they work their way through the process? how will it work? michael: it would be hard to tweak it but not impossible. if they set it up as 15 as the market expects -- i would expect them to do that because they do not want to surprise the markets -- and inflation started to speed up, then they might want to speed up the taper. the only way they could

jay powell's current term ends in february. spacex has returned after knots from the international space station. the crew two mission touchdown monday, completing 199 days in space. the agency was forced to alter its launch and lending schedule due to disruptive weather over the past two weeks. a government advisor says the city must finish negotiating over borders with mainland china and boost the vaccination rate here in hong kong and china are the only places still pursuing a covid zero strategy. a fourth consecutive term after jailing his most popular opponents. president biden is pledging to use diplomacy. electric truck maker prices is ipo today -- its ipo today. if the shares are sold at the top of the market range, it will be the seventh largest u.s. ipo on record. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i ritika gupta. this is bloomberg. ♪ >> president biden's infrastructure deal will become the law of the land. it

they slept through the announcement that is a good show of confidence for jay powell. kelly, back to you >> rick, do you think the markets are right at face value to say simply they think powell will be more hawkish and brainard would have been more dovish >> you know, i'm not sure it is quite that easy. i think it is more that both may have to be hawkish we see the vice chair and others talking about moving the taper along so you could raise rates i think most of the differences between the two candidates were more on regulation and how some politics, of course, have inflicted and infected many of the choices in everything, especially the federal reserve >> all right rick, thank you very much with that ten-year 1.61% today. >>> battle tested, that's how my next guest describes the pairing of powell and brainard to lead the fed. indeed, they're up against a big inflation challenge that will have huge political ramifications, especially as the midterm elections approach how should we expect them to steer the economy through this period joining me now is randy crossner,