Transcripts For BLOOMBERG Bloomberg Markets The Trump Economy 20170817

Driver of the van maybe hold up in a nearby restaurant Catalunya Police confirmed there may have been that fatalities and the search for the perpetrator or perpetrators of the attack. Officials are rebuking refuting reports of a shootout. Phonee a reporter on the from madrid. Tell us what we know at this point. Iswhat we know at this point 2 people is the settle debts, the official number, and over 20 people injured, apparently. Police are being careful with the details and information, but so far the reports have climbed from the initial 2 deaths to 13 at least. That is quite a big number. And apparently there were 2 people in the van, a bit like what happened in a nice last year or the year before. And when against the crowd on the sidewalk. There were 2 people in it, and one of them is reportedly inside a restaurant locked up. They both ran away. Police dont seem to have been able to catch either one of them so far. Them is in a restaurant and the other one we dont know . Rodrigo that is correct we dont know what happened with the other one so far. David police cordoned off the area. How large an area did they shut down . Rodrigo excuse me . David how large an area that they shut down . Rodrigo probably the most visited areas barcelona. It is also essential part of the city, so a lot of local people are in the area. Las ramblas is the heart of barcelona, and their cordoned off a big chunk of the area. David there are reports that at least 13 people have died. Rodrigo so for the police and government have not given any official count. There is a press conference that is starting right now where we are hoping for more clarity on this. El mundo. Only 2 biggest newspapers in spain have given that number and the local cattle and newspaper as given that number. That is the general area where the count is so forget david so far. David these numbers james. We want to thank Rodrigo Orihuela for reporting for us. We will come back to the story as we learn more. During back to washington, the success of president Trumps Administration and agenda is in the balance. Senior aides are distancing themselves from his statement that he blames both sides for the violence in virginia. Treasury secretary Steven Mnuchin is the latest to say that he does not stand with trump on neonazis, but neither he nor anyone else has resigned or publicly criticized the administration so far. With us is bloombergs executive editor in washington and our treasury reporter. Tolouse, just the facts. What do we know, specifically what do we know about whether any Administration Officials are considering leaving . Tolouse so far we have heard several Administration Officials are deeply concerned, privately unhappy with what has happened over the last few days, but none are planning to leave the administration. There is a lot of backandforth with staff, a lot of the top officials are telling their Staff Members that you should focus on the goal, focus on the policy, not on the president and what he is saying. A lot of them are realizing that there is a very major agenda then needs to be put forward in september, and incredibly busy month. They dont have a lot of time for sidetracks and some of the things that the president has been saying. Steve mnuchin, gary cohn are very focused on tax reform. That is something they want to get done over the next few weeks. They are both unhappy with what the president said. They were both at the press conference standing next to the president. Both of them say they will stick with their jobs and focus on pushing for the agenda of tax reform over the next few weeks. Craig, it is ironic that the reason for the News Conference was supposed to be infrastructure spending. That is why gary cohn was there, that is why Steve Mnuchin was there. They were not there in new york to talk about what happened in charlottesville, for goodness sakes. At this point what are the prospects for the president moving forward on the hill . What is the republican response to what the president has said . Craig absolute silence, essentially. You had tepid statements from global lowerlevel congressional lawmakers could all right in and Mitch Mcconnell put out what, to my eye, were paul ryan and Mitch Mcconnell put outcome what, to my eye were bland statements condemning racism. Republicans are in dock and cover mode right now. Onkily for them, they are august recess and are not in town to be pestered by reporters like me. They are hoping that this will blow over when they come back in september in what is shaping up to be an epic month. A debt ceiling five, Tax Reform Committee one last gasp for obamacare. Some of the stuff will be in the rearview me were im not so sure it will be. David you have covered the Treasury Department and ive been with you to cover the Treasury Department. What about Steven Mnuchin and what he is saying in the department . What we are seeing is that the chaos in the white house has not directly touched the Treasury Department, but tuesday night was the first time it really did, and there is no disputing that. Mr. Mnuchin was standing right next to the president on what was supposed to be a press conference on infrastructure that dissolved into a different kind of what is now a mess. Mnuchin had to face his career staffers from his political appointees and the department with a lot of people wondering, what are we doing here . The message to them was, look, i didnt know mnuchin didnt know trump was going to make those remarks. His message to his death was needed in go of their his staff was he did not go up there to put is making it has conference with intention to support or lend credibility to the comments. Then it was just, hey, lets move forward. There is chaos, but we need to look through it, we have a lot to do. Treasury, as the steward of a 14 trillion debt market, mnuchin being a spokesperson of the worlds reserve currency, does not have a lot of room for error. Markets are breathing a sigh of at least iscohn staying, but they need to buckle down and work on the economic agenda if they want to get anything through. David lets talk about gary cohn, director of the National Economic council. There were various rumors not confirmed to my knowledge we had a senior white house official come to bloomberg and we had it reported today that he is going to stay. That in itself when the white house has to go out and say somebody is going to stay, that is something. Cohn was know that deeply disheartened having to stand to the president when he said things that were pretty offensive, and he had a dark night of the soul tuesday night considering what to do next. Im hardpressed to think of another example in my own career in washington with the white house putting out a statement saying that someone was going to keep their job, stay in the job, big headline news. When you know was happening as well, david, the market was jittery this morning. The tweets about confederate statues were coming out of trump. Was onf rumors that cohn his way out. They had to cap at down with a forceful statement saying that gary cohn was here to stay. Gordon,hank you, craig thank you all for being with us. Lets get a check on where the markets stand. Abigail doolittle is here with the latest. Looking at solid declines for the major averages. Doubt, s p 500, and the nasdaq sharply lower, near session lows. The incident in spain that has been classified as a terrorist event by the local police there certainly waiting. Weighing. That gary cohn could be resigning that was refuted. A small move up. Shop leg lower after the headlines crossed about the tragedy in barcelona. Uncertainty with investors trying to figure out what is going on. A strong riskoff tone with stocks at session notes. Confirmed by haven assets. We see that earlier, the 10year yield had been higher. That would tell us that safety in bonds were selling off. Around the time of the cohn headline, we see a bit of a to klein, now in light of the events in spain, we have a somewhat solid haven with a 10year yield down about two basis points. Investors seeking some haven assets as they selloff growthier stocks. These are airline stocks. The dow transports on pace for its worst day in three weeks. Really pretty steady decline here. George ferguson, a Bloomberg Intelligence analyst my spoke to him moments ago in the past have seen the terrorist impacts in europe depressed travel to europe. In makes this point it makes this potentially worse and that it is the height of the summer season. We will see the effect on the financial markets. David lets recap what we know and dont know about this attack in barcelona, spain. There has been a van that plowed into a crowded area in downtown barcelona, the last one less neighborhood. We are not sure of the casualty figures. Police in spain say that there is one death and 32 people injured, including 10 people seriously injured in what they are calling, the police from a terrorist attack come in this Historic District crowded with tourists this time of year. Local media reports that the driver of the van is holed up in a nearby restaurant and there may be a second person in the van originally. Officials are refuting reports of a shootout. This is bloomberg. David this is Bloomberg Markets the trump economy. I am david westin. Lets check in on first word news with mark of it. Police areonia confirming a van attacked in the last rob less district was an act of terrorism. Dissociative prosthesis having multiple media reports that at least one person is dead and multiple others injured after the van jumped a sidewalk and mowed down pedestrians. One local paper reports that the suspect or suspects is holed up in a nearby bar. Some local media also report bursts of gunfire. We will bring you the very latest on this story as it unfolds. In a series of tweets today, i do find President Trump criticized what he called the foolish a defiant President Trump criticized what he called the foolish movement to remove confederate monuments, and he last out at republican critics could he treated it is sad to see the country being ripped apart. He responded to claims by South Carolina senator Lindsey Graham that he was stoking racial tensions calling them a disgusting lie. He said senator graham is still bitter over losing the gop primaries. The American Civil Liberties union calls it a historic victory after settling a lawsuit regarding the cias harsh Interrogation Program in the war on terror. It filed the suit on behalf of three men who were detained following the 9 11 attacks. One died of hypothermia several weeks later after being shackled to a floor in nearfreezing conditions. The suit claims that the cia psychologists designed, and lamented, and administered an experimental torture program. The United Nations envoy for serious is that the beginning of really gushing on the Syrian Crisis real negotiation on the Syrian Crisis could begin in october. He said the yuan is coming on russia, iran, and others to be ready to initiate genuine parts an genuine talks in ending the conflict. Global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. David thanks very much, mark. Top republican tax writers convened at Ronald Reagans california ranch on tuesday as part of President Trumps plan to get fundamental tax reform through congress, what you may have missed it because of the same time, President Trump was giving that controversial News Conference on the right in charlottesville. Riots in charlottesville. I asked if they could hurt tax reform. I dont think we have the president ial popularity, the legislator skill, or the Technical Expertise in the Treasury Department that makes it terribly likely that we will see any kind of substantial and comprehensive tax reform. Next guest, however, has a different view. Terry haines is a senior political strategist for isi evercore, and he says that the likelihood of tax reform is still 5050. Good to have you in our fair city instead of coming over from washington. What gives you a sense of optimism won so many people are saying we will not get fundamental tax reform . Fundamentally, david, what is going on is congress has a couple of hoops to jump through. Is 2 things at work. Are distancing themselves from the president , but they will not stop advocating for tax reform. Theres a lot of push behind tax reform. Second, this is fundamentally a thing that congress has to do. Congress feels they got elected in spite of the president , i think. They outperform him largely in the 2016 elections. They think they got elected to do Economic Growth that think they got elected to the tax reform. And especially with the failure of the Affordable Care act and the turmoil in the current white house, they really feel more than ever that they have got something done that they have got to get something done. David tax reform is something everyone can sign up for democrat, republican. Then you get into the details. Probably not a coincidence that its been 31 years since fundamental tax reform, and that was Ronald Reagan as president. Inhad a crackerjack team place, and by the way, the democrats helped him a lot. Those things dont seem to be present this time. Terry they dont seem to be present this time. Where i think this is going is going to see really dont get tax reform, which a lot of folks, including former charlies a carry somers, will talk about is a fundamental former treasury secretary summers, will talk about is a fundamental restructuring. Slashes to theor corporate rate and it changes to the individual rate on a temporary basis. David how we describe these things matter. Way it was done in 1986 now youre saying, no, tax cuts is what we will get. It wont be deficit neutral . Terry we never thought they would be deficit neutral. We thought there would be base broadening, but we never thought they would be deficitneutral. Our call has been what you are likely to see is an increase in the deficit and equivalent to 1 of gross to mustard product. David when you describe the reasons we are likely to get some form of tax relief, you mentioned the congress, you mentioned the business community. You didnt talk much about the white house. Even today there are rumors circulate in about gary cohn, rumors about Steve Mnuchin. Do you think it will get done almost despite the white house . Terry they are important to the process. The way i described it, Congress Needs a competent partner in the white house. And mr. As mr. Cohn mnuchin are still there providing that, they had a competent partner. Fundamentally, the weight congress will look at something is they need the president to sign a bill. As long as they are going in basically the same direction, that is probably what you get. 2vid the gang of 6 the leaders in the house, plus mnuchin and cohn, are reportedly working hard on what the outline is going to be, early in the fall. At this point, are they trimming their sales . Are they going for the major tax reform, or are they coming back and lets be more pragmatic and more modest and get something done . Congressthink the way and the white house looks at this is they have a ninemonth window from september through the middle of next year to produce, and i dont think they are interested in halfmeasures. Congress particularly, veteran leaders in the house and senate, mr. Mcconnell and mr. Ryan, have always felt that this is not the time for halfmeasures. Go big or go home. David terry haines, isi evercore senior strategist. I want to update on barcelona breaking news at this hour, Catalan Police say one person is dead and 10 people 32 people are injured, can seriously injured. 10 seriously injured. Police are calling this a terrorist attack. We will bring you the latest headlines about this tragic attack over in barcelona. This is bloomberg. David this is Bloomberg Markets the trumpet economy. Im david westin. President trump came into office with a broad agenda that included more than just tax redoing our health system. What is left of those items . Terry haines of isi is still with us to explain. Lets take infrastructure for a moment, because that was supposed to be the subject of the News Conference. Where is infrastructure . Busy day . Is it dead . Terry infrastructure is just nowhere, and it is the Biggest Surprise of the past six months from a policy cents. I look at yesterdays press conference as a halfmeasure, really, to cover that up. The other interesting thing about this is that there is only about 300 billion of direct federal spending available, and most of that would come from repatriation and tax reform. The one interesting detail about the republican budget for next year is that money appears to be being pushed back into tax reform instead of going to pay for infrastructure. Where is the bipartisanship or even the plan to move something major forward . Is not here so far. In the meantime, it is not just a problem of the size, it is the time to do it. Theres only a few legislative days open to them. They have something called the debt ceiling. They are continuing resolutions. However they going to get this done . Terry the date selling and the budget and the spending bills are the imminent problem. Imminent as in the end of the fiscal year. We think you are likely to get spending bills done. You will probably get a budget done, because that is the necessary precondition for the jumpoff point for tax reform. Frankly, the president and republicans cannot afford a debt ceiling default. Cant afford it, but the last time we had a continuing resolution, that hawks held their nose debt hawks held their nose. Not this time. He has true believers there. Terry yes, and at the same time, he takes bipartisanship to happen. Even those hawks sent over the break, look, we know how this goes. The republicans split at the democrats vote for it and we get it and we hated, but that is the way it will happen. David even the debt ceiling, clean, has other stuff laden onto it. Thanks very much to terry haines from evercore isi senior political strategist. Evercore isi, once again want to plug your company as much as we can. Breaking news now. Secretary of state Rex Tillerson speaking. Joint fortillerson shared use of facilities. Our conversation stresses the Critical Role that u. S. Extended insurance plays in ensuring deterrence place in ensuring the stability of david this is Bloomberg Markets the trump economy. I am david westin. David gura is off today. Lets get the headlines with first word news. Mark crumpton has more. Mark a Government Official in barcelona says one prison is dead and 32 others injured in the event attack and historic las ramblas district. Interior chief said during a News Conference that unfortunately, the number of fatalities will likely rise. Police in barcelona said on twitter that 10 of the 32 people injured were seriously hurt. A van mounted a sidewalk in a popular tourist area, slamming into a crowd of pedestrians this afternoon. Top economicmps adviser, gary cohn, will stay in his position, according to the white house. Have been upset on the president s remarks on the violence in charlottesville, virginia. Russia warns that a military response to tensions on the Korean Peninsula will lead to a colossal tragedy. A Russian Foreign Ministry Official said today that moscow is calling on all parties to show restraint and prevent the situation from spinning out of control. She said any attempt at a military solution will lead to a huge casualty, as well as you manage your income economic, and environmental catastrophes. In hong kong, a cordless sending young activist joshua a court is sending young activist joshua wong to prison. 2 other activists will also serve eightmonth prison sentences. Global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. David thanks so much, margaret while nafta a good thanks so much, mark. While nafta negotiations are underway in washington today, the chief strategist has grabbed the spotlight on trade, and is not with mexico, but china. Interview with a leftleaning publication, steve bannon says to me, the war with china is everything, and we have to be maniacally focused on that. If we continue to lose it, we are five years, 10 years of the most, from hitting an Inflection Point from which we will never be able to recover. Joining me is kevin rudd from was dealt a little bit with china over the years. He was the former Prime Minister of australia and is now the head of the asia society. I say, australia, you had to pay a lot of attention to trade with china. What do you make of mr. Bannons remarks that theres an economic war ongoing already . Mr. Rudd there is a huge, grand, global competition between the u. S. And china, and it is ultimately measured in the numbers. Sooner or later, using the two measures for calculating the size the economy, Market Exchange rates or gdp measured as purchasing power parity. On the second of those, the chinese are already bigger, and within a decade or so, the first of those measures, they are likely to be bigger as well. Feeling its oats. It is out there exerting its influence. That is, if you like, the natural product of the economic great power status. There is a warning bell for the United States to him if it is serious about remaining the preeminent economic power there must be the preeminent Global Trading power, must maintain the posture in its manufacturing. In must be the world continuing leader in technology innovation. These are core economic challenges. Otherwise, the Global Economic order changes. Once china is in control, if it gets control. David well, that argument may require exactly what steve bannon is suggesting, which is if china is getting more powerful, and we will not keep them from getting more powerful, now is the time to get the rules in place so we are not being unfairly disadvantaged. There are others besides mr. Bannon who do believe that china has trade policies that disadvantage americans going to business there. Mr. Rudd look at australia, we have had but for those of trade disputes with china over the years. Of trade isads speech with china over the years. And we are considerably smaller than china, unlike the United States. We depend on rules of the game to make this work. My caution to the government of the United States would be this use the rules. Use the rules of the world trade organization. Used to speak mechanisms set up under the wto. Trade use your bilateral tradedispute it is. Those can be prosecuted and dealt with and brought the conclusion. If you walk away from that and de facto end up declaring a trade war, god knows where that ends, including hurting american interests as well. Look at those 2 alternatives, where does Something Like a section 301 preceding fall . 232 fall, thetion former category or the latter . Is that using girls and the wto or mr. Rudd using bilateral mechanisms, or should i say, national mechanisms. If the u. S. For example, notr 312, the chinese are acting in a manner consistent with what is in u. S. Interest as defined by that particular set of arrangements, the chinese would in response use probably wto mechanisms that challenge the u. S. Conclusion. Here i think is the danger not just for the u. S. , but for the Global Trading order. If that happens, lets just say the dispute resolution mechanism says, ok, we have looked at this, and we think the chinese have a case come and the u. S. As the retaliatory action is way over the top compared with the substance of the chinese violation. That is a possibility. If the u. S. If that happens, the u. S. Ignores the da vinci a ruling. Thats the david sheol the wto ruling. If you start operating totally outside the wto mechanisms, you destroy global trade law. That has untold consequences across the entire Global Trading system. Remember, gat back in 1944 was the u. S. Navy. Baby. S a u. S. You cannot walk away from it unless you know you are prepared to live with the consequences of tearing it into small pieces. David on a different subject, mr. Prime minister, there is a pew poll they went to 30 67 countries and asked, would you trust more, Vladimir Putin or donald trump . A substantial majority said Vladimir Putin. What does that say about our standing in the world, and how concerned should we be as american citizens about how leaders around the world, people around the world, received the United States . Mr. Rudd well, the United States, you do your own the mystic politics. I have approved domestic politics. I have the privilege of being the president of a u. S. Based think tank. I as a general rule do not go around telling people how to do domestic politics. I am an australian citizen, a forerunner welcomed for the time being in your country. Travel the world come and i came back from china two weeks ago, and i traveled recently in europe as well, and there was one big weston mark about question mark about the United States at present, and that says , can we have continued strategic confidence and certainty of the u. S. Policy directions . Was critically, of course, on the question of north korea, but more broadly on the question of the Global Economy and trade, just on trade matters we discussed, but when you do the rollback of doddfrank, where does that went to the Global Economy in terms of the predicted ability of the financial rules which were laid down at the the Global Financial crisis for all countries, not just the u. S. . Creeping into Global Reaction is a deep uncertainty about where the United States is going. That leads into the trust factors you referred to. Finally, used to run australia. You are the leader of australia. You were the leader of us joy you. If the United States steps back from its historical from world war ii of being a leader, that is a vacuum. Who steps into the vacuum . Is it china . Mr. Rudd you know, the chinese i am a student of china. , depomedsity days opposing in china. Ive been there more than in the United States over the years. Chinas worldview is how do we, first of all, control our own hemisphere, lets call it the asiapacific region. That is where so much of the problem lies at present. What i see increasingly is a confident china with a certain views about the global rulesbased order. For example, on trade, questions of global Monetary Policy, a. Igger role of china in the g20 this is not a bad thing, but it depends on the nature of the policy changes that china seeks to bring about, and that is where these must be discussed 151 rather than assuming they are all bad or, for that matter, they are all be nine. All benign. We are at Inflection Point of the global rulesbased order. You guys line of your domestic politics as soon as possible. David [laughter] from your mouth to gods ears. President of the Asia Policy Institute and former Prime Minister of australia. Thank you for being here today. We want to recap a breaking news story on the terrorist attack in barcelona. Police are sitting to be negotiating with at least one armed perpetrator who has dug in to the turkish restaurant, according to stateowned tv, tve, in spain. Police say one person is dead and 32 injured, 10 seriously injured. A van rammed into tourists at the las ramblas district, where there are novel number of there are an awful lot of tourists this time of year. This is bloomberg. David this is Bloomberg Markets the trump economy. I am david westin. Lets turn to the question of who will lead the fed when Janet Yellens term expires next year. A former fed president said in a Bloomberg View column that yellen is your own best successor, but urged her not to accept any offer. We want to follow up with a stock emma chandra is here and i think she will take us shopping. Emma we will talk about warm up the shares are falling today because the guidance for the Third Quarter wasnt something that didnt charm analysts. They were a little bit worried that the guidance was lower than expected. They are concerned about pressure on margins and what we are always talking about here, the tough retail environment. If you look at it here today, it is doing pretty well. Up 15 . It is a good second quarter. Looking at it there. But traffic, samestore sales growth. An important warm up. We saw the grocery, half of walmarts business, do really well. We had the best Grocery Sales growth in five years. David more than 50 of businesses, as i understand it. Those are strong and encouraging figures for walmart. David what does the ceo have to say . The ceo was trumpeting ecommerce. They have put a lot of investment in ecommerce and walmart could it has been a year turn they got jet. Com and things around and there has been good growth in ecommerce. Today was talking about how well that is doing. We continue to gain traction in ecommerce, up 67 . The u. S. Store team has done a great job staying focused on providing a fast and easy Customer Experience while managing expenses and inventory. Customers are responding to the improvements were making to deliver a seamless Shopping Experience that saves them time and money, thats exciting to see. One more thing we always talk about ecommerce and amazon, when we talk about rivals walmart. Take a look at this chart, g btv 8636, and it shows samestore sales for walmart and target. Target had really good earnings earlier this week, and then they are catching up to walmart. We talk about ecommerce all the time, and we cannot forget that there are brickandmortar competitors for walmart as well. David these are the ones that are doing well, unlike the jcpenneys of the world. Thank you so much, emma chandra come with the breaking news story about stocks on the move. We want to go back to the tragic story in barcelona, recapping the breaking news, the terrorist attack in barcelona. Police are said to be negotiating with at least one armed perpetrator who has dug in to a turkish restaurant in the area. That is according to state of the tv station t stateowned tv station tve. Dead, 32 injured, 10 seriously, after a van ran in barcelonas historic las ramblas district. David this is Bloomberg Markets the trump economy. Im david westin. Now we turn back to the question of who will be leading the fed when Janet Yellens term ends next year. Bloomberg view in a bloomberg year, then this authors said yellen is best successor, but he has changed his mind. My device to the president remains unchanged. But my advice to chair yellen is to decline any such offer from trump. Being appointed by trump to this position means at least invisibly that you approve of his goals for the United States. Im lucky enough to know janet yellen well and i know that her vision is highly distinct from trumps. Accepting the job government would send a signal that she would regret, possibly deeply. Welcome back to the program. Good to have you here. Janets what you think yellen might achieve by turning down an offer from President Trump. Well, i think what you would achieve is not being associated with this president and his administration. I think part of it is just at a high level, just immoral connection of accepted an appointment from this president. I think it is likely to history likely to be viewed by history in a dark way, negative way. Beyond that, from a technical point of view, doing the job from which i do not talk about as much in my tweets, is really being effective at doing this said,eing chair of the relies upon the president and willing to give you space and not insisting on it being a job that requires absolute loyalty. I think it is very difficult to that mr. Trump would be to accept that role going forward. That because you think at least implicitly, if you were to appoint her, or reappoint her, theres an illicit understanding that they would need to be loyalty, or not because he didnt appoint her to begin with . Narayana that would be my concern, absolutely. David is this specific to the fed and the new position of the fed being independent, or is this with other appointments in the cabinet . Should people be turning to stone unless they agree with the president on his views turning this down unless they agree with the president on his views . Narayana with the position of this kind, i dont think there needs to be absolute correlation on every issue, and there shouldnt be. On the other hand, the last few days the president has made it arer that his views certainly different on many issues that even past republican president s, to set one example. You know, i think that means it might well be a very large gap between himself and the. Otential cabinet appointments i think people should be taking those considerations into account and not thinking about merely a technical issue of how will i be able to do this job, because i think he will end up being judged by history on in a broader context. David at the same time, theres a special status of the fed that is independent. Those are not thought to be political appointments, unlike the position in the cabinet. Janet yellen were to take your advice and turned down President Trump for what would be considered political reasons come with a politicized the fed to a degree it had not been in the past . I think that is a very astute comment, and i think that is something that is something that is a worthwhile consideration. President , given this , and given the concerns with this president , i think that might when i tweeted about this morning, i view that as being more important. David it is a fascinating series of thoughts that you have there and very well expressed. As a practical matter, i suspect we will never see this because the president will not ask her if he does not know she will accept. Great exercise to go through. Thank you very much, narayana kocherlakota, former president of the minneapolis fed. Lets turn our focus to another leading candidate for the fed, gary cohn, reporting by bloomberg and others to be a leading candidate. There is a collision over his future as National Economic Council Director that a senior white house official told bloomberg today that he would be staying in his job. Cohn is said to be particularly upset over Donald Trumps remarks on the violence in charlottesville. Gets the fed job, what would it mean for the future of Monetary Policy . Joining us is a rates strategist for Bloomberg Intelligence. What you make of a possible cohn venture . Fed chair . Looking at mr. Cohns comments in the past about where he thinks rates should go and spec addition, the law would be the same and what would be different under cohn. He is likely to be more dovish than janet yellen, and that is saying something, because janet yellen was one of the most dovish people on the fed for a long time. The regulation side, he seems to have made antireagan vision, before, and the Federal Reserve has 2 mandates. Tionntiregula comics before, and the federal. Eserve has 2 mandates tankerPresident Trump on regulation come he is not for it. On Monetary Policy, do we know whether he would be dovish or hawkish . In the past yes made comments critical of the size of the fed Balance Sheet but it looks like the fed will start the process of reducing the Balance Sheet before the next fed chair takes office regardless. And other comments of the president have been looser, like you shouldnt raise rates. Gary cohn impact was critical of janet yellen a few years ago, saying that until inflation is over 2 , there is no point in raising rates. That shows you that the president is a little bit dovish, and gary cohn certainly has the ability to be dovish as well. David there is a fair amount of expression of interest on the republican side of the hill about how he sets Monetary Policy, more rulesbased and perhaps less datadependent. Do we have a sense of history cohn mr. Cohn on that spectrum . Ira it is unclear. He might want to be more rulesbased. Whoever the next fed chair will be more how that question in front of the house and senate panel in particular. The problem i have always had with these ideas of rulesbased is what do you do when the rule says that Interest Rates should be 4 . Are we going to cut the fed funds rate to 4 . Other countries have cut the negative rates but theyve stopped well north of where the taylor rule might show rates should go. It is not clear what kind of rule you should have. You might look at a rule, but you have to have some human intervention. Otherwise the rule might go haywire. The economy changes all the time. We have had monumental changes in the economy over the last 20 years, and Monetary Policy has to keep up with that. David ok, ivory jersey, thank you so much. We watch a recap finally the breaking news 20 terrorist attack in barcelona. Police are looking for one armed perpetrator dug up in a restaurant. We will keep you updated on bloomberg all day long. Live from your, this is bloomberg. Scarlet it is 2 00 p. M. In new york. Julie welcome to Bloomberg Markets. Nextre live over the hour. Here of the top stories were covering on the bloomberg and around the world. Latest on the attack in barcelona leaves one person dead and others injured after a van mode into a crowd. We will bring you details as we get them. Damningnnon could beast could be standing the trade plan. An economic war with china. We will hear from the former chairman. Keeping up with amazon is costing walmart a pretty penny. Shares plunging today after it reported disappointing secondquarter results. We begin with barcelona where a band plowed into pedestrians