Broadcasting live to New York, Bloomberg eleventh Rio to Washington, d C. Bloomberg to Boston, Bloomberg Well Underis to San Francisco, Bloomberg to the country, sees Exam General one and around the globe the Bloomberg Radio plus appen Bloomberg got gone. This is taking stock. I'm Kathleen Hayes. Along with pim Fox.
We see a sell off in the US Treasury market after the Feder Reserve makes it pretty clear that they are watching the data and looking to see if they will warrant the next interest rate increase that they're meeting in June PM. I think that significant. Is not like
the Fed is looking for reasons to slow down. It looks like a number of members are ready to make the move if the data supported and Lindsay pexa chief Economists to stifle fixed income from Chicago, Will Pete joining us coming up right now, Let's go to Charlie Pellett and the Bloomberg news room for a Bloomberg business flag and I thank you him, I thank you Kathleen. Since our last duct optate, we now have Neztack turning Laura
so Badal the SMP nastac all trading down. This update brought to you by Sector Spider et f S. Why by a single stock when you can invest in the entire sector of visits sector s p d r S dot com or call one six sector e t F if you're just joining us. We got minutes from the Federal Reserve today, just about thirty one minutes ago, policy makers signaling a willingness to raise borrowing costs in June. The SMP five hundred index now lower after advancing seven
tenths of one percent. Stocks favored for high dividend payouts fell as treasury yields spiked, banks rallying on the potential for higher rates to boost profits. The tenure down twenty six thirty seconds. Zeal one point eight six percent, most Federal Reserve policy makers set in April, and interest rate increase would be appropriate in June if the economy continued
to improve. Matt Bosler covers the Federal Reserve for Bloomberg News sentence that ms out at me here is Several participants were concerned that the incoming information might not provide sufficiently clear signals to determine by mid June whether an increase in the target range for the federal funds rate would be warranted. So yes, they did say it was likely if the economy did what they wanted, but it sounds like several were concerned that they might not get
the info they needed. He was interviewed right here on taking stock Gold downtounce now a drop there of one point one percent to twelve sixty three. Crude oil giving up earlier gains, down twenty cents the barrel now for ten on West Texas Intermediate, a drop there of point four percent. SMP again down eleven, a drop of six tenths of one percent to thirty two on Wall Street. Now a look at other news. Charlie, thank you from
the Bloomberg news room. I'm Mark Crumpton. This news update is brought to you by a New Jersey Institute of Technology, investing more than a hundred and ten million dollars a year and applied research to solve problems and improve life. Learn more at Stories of Innovation dot j I T dot DU. It was a split decision Tuesday night for Hillary Clinton and Bernie Sanders. The Vermont senator won the Democratic presidential primary and Oregon, while Mrs Clinton claimed victory
in Kentucky. Sanders supporters like this woman in California, say they'll continue to back him even when the delegate maths suggests otherwise. I'm worried that a vote for her is a vote for Trump, because in all the polls he's been there. The next big tests are June seventh. There will be primaries in California, New Jersey, and four other states. Cybersecurity officials are sounding the alarm, warning lawmakers today that
hackers are becoming increasingly sophisticated. National Intelligence Director James Clapper said one group in particular poses the biggest threat. EIS is by far the most capable, most sophisticated user of the cyber domain for lots of purposes, for command and control, and of course our challenge there is the increasing trend towards encryption, which is make it much more difficult from a content standpoint to understand and have insight into their plotting.
It could be another tough commute this afternoon for Metro North customers. The railroad says writers traveling into and out of Grand Central could experience delays of up to eighty minutes following yesterday's fire underneath the elevated tracks near One Street Global News twenty four hours a day, powered by our two hundred journalists in more than one hundred fifty news bureaus around the world. From the Bloomberg News Room
by Mark Crumpton. Charlie, and we thank you. The losses on Wall Street intensifying now the Dow down one hundred one points, to drop there of six tenths of one percent. The SMP five hundred indecks also declining six tenths of one percent. Law now by eleven points, Tenure down thirty seconds, l there one eight six percent. I'm Charlie Pellett, and that's a Bloomberg Business flash. You're listening to Taking Stock
with Kathleen Hayes and Pim Fox on Bloomberg Radio. A majority of Federal Reserve officials are they prepared to raise the Central Banks benchmark interest rate in June as long as the recovery remains on track. Let's find out more from Lindsay Pieza, Chief Economists Defill Fixed Income, joining us from Chicago. You can follow Lindsay at Lindsay PEXA on Twitter. Lindsay, all right, so give us your thoughts on these uh
these results. These the release of the minutes and the takeaway about June and potential rate increase, Yeah, they were pretty exciting f o MC minutes. Now we know the market has continuously discounted the possibility of an additional rate increase until the end of the year. But as we see in these April minutes, SET officials are increasingly optimistic regarding not only the state of the U S economy but their ability to continue to remove accommodation under these conditions.
So really a hawk ish stilt in the April minute uh hawfice silt that has been affirmed by more decent comments from individual BEETE officials talking about not only a near term rate increase, but the possibility of many rate increases, maybe two, maybe three, still within the bounds of twenties sixteen. So certainly SET officials are well positioned at this point to vote in favor of a near term rate increase, potentially at the June meeting. But it all depends on
the underlying data. Now the set is set. We don't need the economy to get back to strong. We don't need solid or robust. We need modest or moderate growth. But even getting back to a more moderate pace of expansion from the current slow activity level will be a sizeable challenge. Well, lindsay, Uh, you are in the camp that has been more cautious on the economy, more concerned
about the economy. Are you concerned then that there's a body, perhaps a majority on the f m C now that see enough strength and um and not inflation, maybe far from targ target, but moving in the right direction. And the other thing they like to talk about. I think John Williams of the San Francisco Fed stress this when we spoke to him just a couple of weeks ago in an interview. It's normalization, it's not tightening. You know.
Ester Georgia said that, does that concern you? It really does concern me because typically when we talk about the FED removing accommodation, So you're right, not yet tightening, but but normalization, removing accommodative policy. The Fed weights until the economy is on solid footing, strong footing. This time around,
they're raising rates in anticipation of improvement rather than realized improvement. So, yes, we have seen continued hiring games near seventy consecutive months, but the pace of hiring remains very modest without upward momentum. In wages, business investment remains negative, the consumer remains under pressure,
so the state of the US economy is still very fragile. Now, certainly we can sit down and argue with Set officials regarding the consistent inaccuracy of their forecast, but I think it raises a big red flag when we are basing monetary policy on expectations alone, rather than waiting to see
that improvement filter through into the data. Lindsay. The President of the Federal Reserve Bank of Minneapolis, Neil kush Kari, previously has said that investors obsession with interest rates is misguided and that they should be focused on more important economic issues. What's your react? I think I think that's exactly right. But I think the FED has no one
to blame but themselves. Uh. The constant will they won't pay saga has been drawn out for years with the market sitting on the edge of their seat, and had the FED actually begun this normalization process back in two thousand and eleven when they had a wide open window, we certainly would be in a very different place this time around. So I think the feed in good part can be blamed for all of the hype surrounding even
basis point and great. Of course, as you pointed out, what's significant here also, it's just not that it's one more. It's a fact that Dennis Lockhart again told told us that in an interview about three or four weeks ago then and John Williams as well from the San Francisco
fat there's not just two interest rate increases. Maybe it's three. Right, So this is I think what maybe the market starts getting concerned about the FED is going to start normalizing, raising rates, whatever you want to talk call it that they are now on a path. And once the FED gets on a path, I think there's still that that idea looking at the past FED moves that the path continues. Now, I think you're exactly right there walking a very fine line.
They're trying to convince the market that they will continue along a very slow, tepid or quote gradual removal of accommodation, but at the same time, by raising rates, each additional hike makes the market more nervous that we will get back to a two thousand and four style tightening cycle. For the FED raised rates basis boids at every meeting. So on the one hand, the FED is trying to communicate.
It's very a slow, tepid, still very accommodated level of policy, but also moving closer and closer to a more normal level. So it is a very delicate line, and the FED is desperately trying to communicate to the market. And whether we put the blame on the FED for the lack of communication or simply on the market for the lack of listening, I think there's a blame to go around for both sides. Ten seconds, are you gonna? Are you do?
What is your view today? Hike in June? I think they certainly are well positioned to go if the data continues to improve, I think they're going to be hard pressed to bypass June. However, the data disappoints and the ongoing volatility surrounding the Brexit begins to wratch it up. I think they have more than enough excuses to wait until September. Lync PSA, thanks so much for joining us, giving us you had another view on the FEDS Minutes
from their April twenty seven meeting. She's chief economist is Stephen Nicholas and Company. Kathleen Hayes pim Fox taking Stock, Bloomberg Radio, The FED in focus is brought to you by Willoughby's since eighteen ninety eight, New York City's boutique camera store for precision craft at Hazelblad and Like A Cameras, plus a full selection of GoPro action adventure cameras. Willoughby's corner Fifth Avenue and thirty first Street,