Episode summary
US-Iran Interim Deal Goes into Effect; Warsh's Hawkish Signals | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 22 min · Hosts: Tom Keene, Jon Ferro, Lisa Abramowicz, Nathan Hager, Tim Stenovec, Carol Massar, David Gura, Kailey Leinz, Ed Ludlow, Eric Mollo, Damian Sassower, John Tucker
Summary
President Trump signed an interim deal with Iran that he said is now in effect and will end the war and reopen the Strait of Hormuz. The agreement would move into a 60-day negotiation window over Iran’s nuclear program and access to frozen assets, while also raising questions about ballistic missiles and how much control Iran and Oman may retain over the strait. The deal drew sharp criticism from some Republicans, while oil prices fell and U.S. gasoline dropped below $4 a gallon nationwide for the first time since March.
The Fed’s first meeting under Kevin Warsh was the other major market mover. Policymakers left rates unchanged, but Warsh emphasized that the central bank will not tolerate persistently high inflation and launched a series of task forces, including a review of the $6.7 trillion balance sheet and communication tools such as forward guidance. Markets interpreted the message as hawkish, with short-term Treasuries selling off and traders pricing in a possible rate hike as soon as next month.
The show also previewed New York’s ticker-tape parade for the NBA champion Knicks, with more than 10,000 NYPD officers assigned and crowds expected to be massive along the Broadway route to City Hall.
Key takeaways
- The interim U.S.-Iran deal has immediate market effects, pushing AAA regular gasoline to $3.99.9 and sending crude lower.
- The host said the real test is whether Iran actually reopens the Strait of Hormuz and whether the 60-day talks produce a binding follow-on agreement.
- Republican criticism centers on whether the agreement gives Iran too much on nuclear and missile issues, even as Trump says the U.S. must protect the dollar and global investment.
- Kevin Warsh’s first Fed meeting was read as hawkish, with the committee unanimously holding rates but signaling that hikes this year are possible.
- Market participants responded by dumping short-term Treasuries and moving toward expectations of a quarter-point hike by October.
- New York’s Knicks parade is expected to bring huge crowds downtown, with more than 10,000 NYPD officers deployed along the route.
Notable quotes
“President Trump has signed the interim deal to end the war and reopen the Straight of Hormuz”
“This committee will deliver price stability”
“We have their money. We have taken their money. It's not our money. It's their money and we froze it”
“It is a hawkish tilt from the committee”
“the proof's going to be in the pudding. in the pudding is whether the straight reopens or not”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager — And I'm Karen Moscow. Here are the stories we're following today. — Karen, we begin with the latest on Iran. President Trump has signed the interim deal to end the war and reopen the Straight of Hormuz. The president insists the agreement will ensure Iran never obtains a nuclear weapon, but he's suggesting Thrron should still have the right to enrich uranium for electricity, access its frozen funds, and develop ballistic missiles.
If other countries have them, it's a little bit unfair for them not to have some. A ballistic missile is not the same thing as what we're talking about when we talk nuclear. But if Saudi Arabia and Qatar and they all have some, I would say in relative proportion, I think it's okay.
Speaking at the G7 summit in remarks heard live on Bloomberg radio, President Trump also defended the $300 billion development program that's included in the agreement. — We have their money. We have taken their money. It's not our money. It's their money and we froze it. At a certain point in time, I guess we're going to have to give it back. You know, if we didn't give it back, nobody would ever invest in the dollar again.
And despite President Trump's assurances, it is unclear whether Iran has begun taking steps to fully reopen the straight of Hormuz. — Well, Nathan Bloomberg, Middle East correspondent Air Abu Omar says the interim deal opens the door to 60 days of negotiations,
Mainly about the nuclear program, mainly about Iran's ability to get a hold of those frozen assets if it falls apart and the concessions are not met. President Trump did threaten military strikes could go back again if he doesn't like the situation.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us-iran interim deal
- strait of hormuz reopening
- fed hawkish signals
- treasury repositioning
- knicks championship parade
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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