Live on Bloomberg TV

00:00THE HOUR. GREAT TO HAVE YOU ON THE PROGRAM , AS ALWAYS. THAT U.S. JOBS NUMBER WAS A SHOCKER ON FRIDAY. WHAT DOES IT MEAN FOR THE FUTURE HIKE PATH? LARRY: THIS REALLY WAS. NO ONE EXPECTED IT. THE NUMBER WAS WELL BELOW EVEN. WHAT IT MEANS IS THAT JANET YELLEN HAS TO ADDRESS IT. THE FED HAS TRIED TO SHIFT THE DEBATE OF THE DOMESTIC FUNDAMENTALS TO BE DATA DEPENDENT OTHER THAN FOCUS ON THINGS LIKE CHINA OR THE MARKETS. THIS IS DEFINITELY AN ABERRATION FOR THEM. PROBLEMATIC IS THAT IT IS -- THAT EMPLOYMENT WAS ALSO WEAK. MY SENSE IS THAT SHORTLY JUNE IS OFF AND THE PROSPECT OF A JULY HIKE IS DOUBTFUL. WE ARE LOOKING AT AUTUMN. FRANCINE: AUTUMN, OR DECEMBER? AUTUMN IS THE U.S. PRESIDENTIAL ELECTION. LARRY: IF THE FED FEELS THE CONDITIONS ARE APPROPRIATE, THEY WILL MOVE. TOM: I WANT TO BRING EVERYBODY'S ATTENTION TO ONE OF THE RESEARCH NOTES. I RARELY DO THIS. THIS IS JPMORGAN'S RESEARCH. THIS IS WHAT YOU GET FROM ROBERT MELLMAN -- I'M GOING TO SAY THIS IS FROM 5:00 P.M. ON FRIDAY. THEY REAFFIRM A JULY RATE HIKE , BUT THEY DO IT EVERYBODY ELSE HAS SAID. WE ARE DATA DEPENDENT. WHY ARE WE SO SURPRISED THAT CHAIR YELLEN, DENNIS LOCKHART ARE GOING TO WAIT TO SEE WHAT THE DATA IS? WHAT IS WRONG WITH THAT? LARRY: THERE IS NOTHING WRONG WITH WAITING. INFLATION REMAINS BELOW THE TARGET. THERE IS NO REASON FOR THE FED TO BE AGGRESSIVE, TO BE IN A RUSH TO NORMALIZE RATE. PEOPLE FRET TOO MUCH ABOUT CREDIBILITY. THEIR CREDIBILITY RESTS ON DOING THE RIGHT THING, NOT ON DOING THINGS WHEN THEY ARE EXPECTED TO ACT. IT IS MORE LIKELY THAN NOT THAT THEY WILL SYRIA INFORMATION. THEY WILL MOVE LATER THIS YEAR AND NOT IN JULY. TOM: WITH THE EXPECTATION OF MOVES AND THE GAMING AND THE PARLOR GAME, HOW DO YOU RESET AS AN INVESTOR? WE HAVE RESILIENT EQUITY MARKET, YIELDS ACROSS THE BOARD LOWER. WHAT IS YOUR TO DO LIST MONDAY AFTER THE CARNAGE FRIDAY? LARRY: AS AN INVESTOR, YOU HAVE TO STEP BACK. THINGS SEEM TO BE IN TRAIN. INFLATION EXPECTATIONS MOVING HIGHER. THE BIGGEST SURPRISE IN THE AREA WHERE MARKET PARTICIPANTS WILL HAVE TO WATCH MOST CLOSELY, THE LACK OF AN EQUITY MARKET MOVE. BONDS NOT ONLY DOWNGRADED THE ASSESSMENT OF RATE HIKES , BUT THEY SUGGEST THAT THE ECONOMY IS WEAKER THAN PREVIOUSLY THOUGHT. FROM THAT PERSPECTIVE , THE ONUS AFTER A VERY STRONG RALLY IS ON THE EQUITY MARKET TO TRY TO

No schedule data available.

How Will Janet Yellen Address Jobs Report?

GAM Chief Economist Larry Hatheway weighs in on the U.S. jobs reports and it's impact on Fed policy. He speaks on "Bloomberg Surveillance." (Source: Bloomberg)

More From Bloomberg Surveillance
All episodes and clips