Live on Bloomberg TV

00:00You put your S & P target last week due to the uncertainty around Fed policy. Shery Ahn much room is there on either end for even a hawkish surprise given how much has already been priced in or a dove ish one. Well look as you said if you look at the two year Treasury note yield which tends to be a great year ahead indicator of what the market anticipates the Fed funds rate will be the two years as you've pointed out this morning one point thirty three percent. So here we are just a little bit north of zero. So we've got a ways to go. And the big debate is are they going to do it in measured 25 basis point increments or are they going to do it starting out with a 50 basis point increments. I guess the answer will partly depend on what kind of surprise we get on the CPI this morning. But I would like them to just get on with it. Let's let's do 50 and just the market's already discounted. It should just do it in terms of what matters to this market. You say all of this has been discounted has contributed to a lot of the turbulence we've already seen in 2022. Is it just that macro policy environment that matters here. Can you were talking about profit margins the earnings story. Does that just matter less right now. It does. But to your question about corporations and the impact on profits. I mean the reality is that those profits increasingly we have to look at them discounted by the kind of inflation the where we're getting. When inflation was around less than 2 percent nobody really cared about what impact that was having on revenues and earnings. But now clearly we're not getting as much bang per buck real earnings if you will from from this kind of inflation. So we need to see inflation start to moderate in order to see kind of a stronger organic earnings than just price increases. There's a trend right now of flows of equity money abroad and maybe that's it. I don't want to own Apple. I want to own something abroad. Do you buy it or do you stay with American big tech. The defensives I would stay in with the U.S.. That doesn't mean that I wouldn't invest overseas. But I've been arguing that one of the investment styles is stay home vs. go global as an investment style. And I've been promoting go stay home really since the beginning of the bull market. And it's worked out extremely well and I'd stay with it. The U.S. has a very diversified base of businesses and it's not just tech that has outperformed. We've seen lots of other sectors like health care and finance outperform the rest of the world. I think we continue to do that. We have a premier technology sector but it produces a lot of technologies that lead to fintech and health health tech. So all in all I would say in the U.S. as an overweight basis. And final question you on this phrase the vigilance is back. Well I think we're going to find out very shortly here. Beware the Ides of March. The FOMC meets the 15th and the 16th and they should be announcing that they're done buying US securities and that will finally free up the bond vigilantes to express their opinion here. And so I think I think they're waking up.

No schedule data available.

Yardeni Says Fed Should 'Get on With It,' Hike 50 Basis-Points

Ed Yardeni, founder and chief investment strategist at Yardeni Research, says the Federal Reserve should consider a more aggressive 50 basis-point interest-rate hike at the central bank's March meeting. "I would like them to just get on with it. Let's do 50, the market's already discounted it," Yardeni said on “Bloomberg Surveillance.” (Source: Bloomberg)

More From Bloomberg Surveillance
All episodes and clips

Bloomberg Markets
"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
More episodes and clips