00:00You've been on Bloomberg's Odd Lots and you were on another network this morning. So we're going to stipulate that things are uncertain in the economy and you don't exactly know where policy is going to be. And let me ask you a couple of things in different areas. Monetary policy works through the markets. And I'm not talking about the judgment of market people. But do you think that market rates are essentially where they should be given where your rates are at this point?
00:30That's all. First of all, good to have you here. I'm really always happy to speak on Bloomberg. What I would say is this. The market is trying to process a lot at this point. And where our rates are, I think are mildly restrictive in the marketplace, trying to get inflation back to our 2 percent target because it's been too high for too long. I think the rest of it is really about perceptions of risk in the marketplace and uncertainty and the volatility that might be
00:59present in the market, I think leads to there being an extra premium on it. And so the market will decide what it what its price needs to be. But it doesn't surprise me very much that we see it at a higher level relative to the things that we've done with our rate in the last year.
01:14Well, we've got the downgrade now that pushed rates up early this morning and overnight, and then it started to fade back a bit. The same thing that sort of happened after Fitch and S&P did their downgrades. Does it worry you that they are not pricing in more of credit risk to the United States, given that we're no longer AAA?
01:37Well, you'll have to talk to the Raiders about sort of how they interpret these things. What I would say is this. So much of our economy is based on faith that we will deliver on the things that we say that we've promised for the future.
01:52When you start to see the markets waver a little bit, I think people are asking the question, do we still have that same level of faith? I think the sign that rates have started to come back down and the markets are sort of returning back to a normal stasis to guess that they think there is that likelihood moving forward. And we'll just have to see where it goes. I mean, I always want to make sure I understand what the price of credit and debt is. But, you know, the markets will make a determination of that on their own.
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