Episode summary
Bloomberg Surveillance TV: June 18th, 2026 | Bloomberg Surveillance
Bloomberg Surveillance
· · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr · Guests: Ed Yardeni, Norman Roule, Claudia Sahm
Summary
The episode centered on how markets are interpreting Kevin Worsh’s unexpectedly hawkish posture at the Fed, with the host and Ed Yardeni arguing that his emphasis on price stability and a 2% inflation target points toward a tighter policy bias. Yardeni said the committee’s language was more hawkish than expected, that the bond market has already normalized around 4.5%, and that a future rate hike would not necessarily derail equities if the economy keeps holding up. Claudia Sahm pushed back on the idea that the Fed should offer less guidance, saying Worsh made a mistake by skipping the summary of economic projections and leaving markets to fill in the blanks. She argued that the Fed should explain why it held rates steady and show how its decisions fit the goal of price stability.
Key takeaways
- Ed Yardeni said Worsh came across as unusually hawkish and that the Fed may now be in a tightening bias rather than an easing one.
- Yardeni argued that if inflation does not keep spreading, the Fed could do nothing for a while and let headline inflation fall on its own.
- Claudia Sahm said skipping the dot plot left “huge blanks” in Fed communication and increased uncertainty for markets.
- Sahm said nine of the 18 FOMC members saw the next move as a hike later this year, which she viewed as a meaningful hawkish shift.
- On Iran, Norman Roule said the reported U.S.-Iran deal is a “high value pause” that relieves pressure now but does not amount to a durable settlement.
Notable quotes
“we thought he was a dove who favored lowering the federal funds rate. Instead, he hammered home a strict orthodox message on inflation with a strong commitment to price stability”
“I think the bond yield is normalized. I think Fed policy is normalized”
“The deal buys time, it does not buy trust”
“I think it was a mistake by Worsh not to participate in the statement of economic projections. Worsh is leaving huge blanks in his communication”
“how are you going to do that right like what what do you how are you going to deliver and the summary of economic projections it is not perfect”
How the episode opens
Bloomberg Audio Studios podcasts radio news. This is the Bloomberg Surveillance Podcast. I'm Jonathan Pharaoh along with Lisa Abramitz and Amarie Hordern.
Join us each day for insight from the best in markets, economics, and geopolitics. From our global headquarters in New York City, we are live on Bloombo television weekday mornings from 6:00 to 9:00 a.m. Eastern.
Subscribe to the podcast on Apple, Spotify, or anywhere else you listen. And as always on the Bloomberg terminal and the Bloomberg business app,
We begin this hour with stocks rising and bond yields falling after Kevin Worsh made it clear the central bank will not tolerate high inflation. Edard Denny of your Denny Research calling Worsh a quote hawk in Dove's clothing, writing, we thought he was a dove who favored lowering the federal funds rate. Instead, he hammered home a strict orthodox message on inflation with a strong commitment to price stability.
Ed joins us now for more. Ed, great to see you. Thank you for being here.
So, is this more of an Allen Greenspan rather than say an Alen Burns? — I I really can't answer that because I have a task force working on that. — Don't we all?
It's very green span. I mean, it's, you know, not a lot of information, uh, a lot of ambiguity and, uh, you know, occasionally some surprises. He started right off the bat with a surprise.
He he, you know, it's kind of like he had an interview with President Trump and uh yesed him told him everything that that he wanted. Yes, we're going to lower interest rates. Yes, AI is creating creating productivity.
And then as soon as he got the job, it's like the old wars concerned about uh price stability. He mentioned price stability over and over again.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- economy
- markets
- finance
- investment
- geopolitics
Companies and tickers mentioned
- Yardeni Research
- Center for Strategic and International Studies
- New Century Advisors
Watch the episode
Watch “Bloomberg Surveillance TV: June 18th, 2026 | Bloomberg Surveillance” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Surveillance
-
Stocks Rise as Inflation Data Ease Fed-Hike Worry | Bloomberg Surveillance -
Bloomberg Surveillance TV: November 13th, 2026 | Bloomberg Surveillance -
Bloomberg Surveillance TV: November 12th, 2026 | Bloomberg Surveillance -
Jensen Huang Ousted by Nvidia Board as CEO | Bloomberg Surveillance -
Bloomberg Surveillance TV: November 11th, 2026 | Bloomberg Surveillance -
AI Stocks Rebound as Fed Hike Bets Return | Bloomberg Surveillance
Bloomberg Surveillance, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
