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00:00RAZ I want to have you speak to what you had that Pamuk talking about over at the Cleveland Fed, this idea that you could potentially see the dual mandate in conflict today. Clearly, the bond market is betting on rate cuts. But I want to remind everyone that we were just recently talking about that inflation, this which concerns you more. So, listen, we think the economy structurally is very, very sound today. We think on our team just that the policy setting today is a bit suboptimal. You think about the last time the Fed hiked rates in July of 2023 to 5 and 3/8. The real policy rate then was only 100 basis points. Today, with a lower velocity economy, it's about 150 basis points. And so it's this notion that we're rates are today are hurting disproportionately the lower income parts of the household sector at a time when velocity in the housing market and in the labor market are slowing demonstrably. So we think this evidence today will give more impetus to the who are the doves on the on the committee in terms of their endeavor to cut rates in September.

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Policy is Suboptimal: BlackRock's Russ Brownback

BlackRock Strategic Income Opportunities Fund Co-Portfolio Manager Russ Brownback discusses the bond market betting on rate cuts and says that the current monetary policy is suboptimal. He speaks with Sonali Basak on “Bloomberg Real Yield.” (Source: Bloomberg)

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