Environment. Where we are is the new eaglewood librium just a new equilibrium. The higher for longer will stay there. We understand we establish price stability as key. They are not giving up the 2 inflation target. The economy is doing fine and i think the economy is on its way to 2 by the end of the year. This is bloomberg surveillance. Jonathan the third hour of bloomberg surveillance begins right now, live from new york city, there are many ways to get a read on the u. S. Economy. You could ask the ceo of the biggest bank in america, jamie dimon, Francine Lacqua will do that in 10 minutes time. You can look for the data at 8 30 a. M. Eastern time in the jobless claims come of the estimate is 220 or look to a large retailer like walmart in the premarket posited by more than 5 after a beat on the top and bottom line. Lisa there is a cohesive thread coming together and its not clean and neat and dramatic. It is a slow softening. Its clear with walmarts extreme beat on the heels of hig
Of momentum out there. Commodities also fallen, especially oil. Rishaad venezuelan politics as well. The dollar has been steady of late. Nifty futures, there you go. Having a look at these. Various things will be on the agenda for investors. We also have reports that india will be skipping the belts and road forum. You can see there is a move downward for the dollar against the rupee. The rupee at a record low when it closed off trading. Yvonne we have been talking about the big theme, which is the middle east, and whether moves when it comes to oil markets, how sustainable are they as we wait and see if the risk becomes more of a wider conflict. We heard from the fed chief of philadelphia repeating his call to the central bank to stop raising, that Small Businesses in the United States are struggling to cope. A lot of these Companies May not make it with the higher rates. It feeds back into my view that this is why we should hold rates steady. We should not be thinking about increases
Band to 12 cents a share. From new york, alix steel with guy johnson, welcome. We are excited about the cpi and i have to say that did not change anything for me. I do not know if that move the needle for me. Guy it is the second month where the numbers are coming through. We have a claims number that looks like it is signaling that we have a very strong labor market. All of this points to the fact that there is more work to be done. Over the last few days the fed has abdicated responsibility for bringing inflation down to target and saying that the market is doing the work for it and may be the fed needs to step up and do more. Alix and then you see the eight to nine basis point move, the more that moves and maybe the less the fed has to do as this kind of yield filters through. Guy the fed is talking more about the long end but the front end signaling that the fed needs to do more. It is interesting, you look at the Inflation Trajectory in europe and the u. K. , both point downwards
Jonathan lets get your morning started. Live from new york city this morning, good morning, good morning. This is bloomberg surveillance. The s p 500, bouncing back from a strange day of losses, positive by zero point 6 . We said this yesterday after chairman powell spoke, the presser ended almost as soon as it started. The top line headline, restrictive with nothing else seemed to matter. Lisa taking off the prospect of rate hikes took away the tail risk of them becoming even more restrictive and repeating that they are on the right path. That was the entirety of what was accomplished. It seems like this puts it back to where it was before. It is in the hands of earnings and it raises the question of on the long end, how much will this reaccelerate . Jonathan the fed will cut as soon as the data allows. Bank of america, hes in a wait and see mode. Deutsche bank, hard to say it was a dovish meeting, but given the recent inflation print, it could have been more hawkish and its difficult
Billion from 60 billion. Pretty aggressive reduction there. That begins in june. A way to think about this, if my numbers are right, is a runoff that had been going at 720 billion a year of treasuries, by the way, down to 300 billion. It left the runoff of Mortgage Backed securities the same t 25 billion. That q2 goes from 60 to 25 on treasuries and begins in june. That is a cap on the reduction. On the economy, the Federal Reserve says continues to say the economy is increasing at a solid pace. It says job gains have emained strong. Inflation has eased but again noted that progress has stalled. Im going to repeat some statements that they repeated this time around but maybe now they are perhaps more important. It could be said the committee is strongly committed to bringing inflation to 2 . They are highly attentive to the inflation risk and preparing to adjust policy is appropriate if risks emerge. Does have been in the statement for a long time and maybe now they are a little more i