Story of the day, congressional testimony from j powell. The fed chair j powell maintains the economy is in good shape, labor market is strong with inflation coming down but the fed needs more evidence on inflation coming down before cutting interest. How much evidence . Maybe is not as much as we previously thought. More evidence that ill give us more confidence that inflation is on a path down o 2 sustainably. Not looking for better readings then we have had, but more of them and what will happen is as we go forward, 12 months will continue to drop. Because it will be lower than early last year. The first of two days of testimony before congress j powell says the fed can cut before it reaches 2 , he does not believe the economy is close to recession and higher bank capital rules could be re examined. He says it is possible before it goes to capital higher levels being withdrawn, they could be reproposed on commercial real estate. There will be losses, it is a serious problem, but mos
Have to decide first what changes do we think are appropriate, and that will take a little time. And then the question will be reproposal what i said, when we get to that point, if reproposal is the right time, were not going to hesitate its a perfectly live option in the current environment we have in politics in this country, theres not a lot that you find bipartisan agreement on, but i think you could find some agreement in withdrawing that proposal. Can you explain the importance of broad consensus at the fed on proposals like b3e, among Board Members to proposals i think well get to broad consensus at the fed i think its very important. This has been our culture that we try to find Common Ground and weve been able to do that in the regulatory space, and i expect we will be as well. Im committed to that. Could it be that were seeing this level of disagreement because of extreme measures that are being taken now that may not have been taken in the past. A total difference of opinion
City this morning. For our audience worldwide, this is bloomberg surveillance. Equity futures on the s p 500 up. 2 . Date two for chairman powell and in washington, d. C. It is the state of the Union Address. We will catch up with amh in washington. It was a win for wall street but not the kind of win we were thinking about. This was not Monetary Policy, this was about Financial Regulations. Lisa there are lobbyists in washington, d. C. Getting massive bonuses. We saw that 19 Capital Requirement that the largest banks in the u. S. Were going to have to hold under new proposals basically being rolled back. Jay powell saying we will make a lot of changes to this after a lot of lobbying. Jonathan day one was in front of the House Financial Services committee. Date two was in front of the senate committee. The senator from massachusetts, Elizabeth Warren, i imagine Elizabeth Warren has followup questions about yesterday. Lisa i imagine she will not be particularly happy when people are loo
Neil Jerome Powell is not saying anything to rattle investors, the selloff that we had, and particularly platforms on a record high. Nvidia has another record high. And terry weisberg. One minute in the market. A big reversal from yesterday. The message coming from powell and his testimony, is market friendly. With the fed it is always fed speak, you have to read between the lines. A little good news and a little bit of cautious news. Clearly the message is it is positive. Some rate cuts are on the table. Hes talking about rate cuts towards the summer. That is what the market wants to hear, not hearing anything terribly negative from him. A little bit of a melt going on today. There are a lot of folks, myself included, we are very comfortable buying shortterm treasuries. A lot of cash on the sidelines. Nothing more bearish. We are wishing we can put that money to work. Neil you call today melt up. That can have different meanings to a lot of people that you dont want to miss that. Othe
This technological revolution is present all barriers, even potentially becoming the heart of our National Security apparatus. We could be like ostriches if our hands in the sand if we dont address it hereon that money. I think eventually it could be the key to making the biggest amount of money over the next half decade that we can do, not just the next week, or next month, or quarter, as the professional bubble bursters and all their negativity keep cleaning, and they are all rallying, it drives me crazy. So on a day when the averages regrouped after a couple of days of pain, the dell up 86, 5. 1 , nasdaq up, why dont we just spell out the stakes here . So you know what im really thinking . First one of the few tech stocks has been able to hold his head up this week because it has the cards, the graphics processing units or gpu cards. Each and video semirun much faster than any other with the sole exception of amd, which is their real competitor. The next generation will far exceed w