With Bloomberg you get the story behind the story, the story behind the global birth rate,

behind your EV batteries environmental impact, behind sand. Yeah, sand, you get context.

And context changes everything. Go to Bloomberg.com to get context. Welcome to the Bloomberg surveillance podcast. I'm Tom Keene.

Daily, we bring you insight from the best in economics finance investment and international relations

find Bloomberg surveillance on Apple Podcasts soundcloud bloomer.com and of course on

the bloomer Mohammed Alarian joins us.

He drops by the studio here in New York City.

Bloomberg opinion, colonist himself.

Mohammed, just allow me to read this for our listeners

so they get the benefit of hearing the first paragraph.

This from Bill Dudley, the former New York Fed President, in Bloomberg opinion.

US President Donald Trump's trade war with China keeps undermining the confidence of business and consumers worsening the economic

outlook, this manufactured disaster in the making presents the Federal Reserve with a dilemma

should it mitigate the damage by providing offsetting stimulus or refuse to play along. If the ultimate goal is a healthy

economy, the Fed should seriously consider the latter approach.

Wow, Mohammed, should it?

So first, John and Tom, thanks for having me on.

This is part of a change I call a break of the cognitive entrenchment of Central Banks, which is we are doing the right thing

and it's going to work.

In that same piece, Dudley goes on to say that the Central Bank's effort to cushion the

blow might be not merely ineffectual. They might make things worse.

So now we're talking about the benefits going down, the costs and the risks going up. And I think at Jackson Hall, that view which the Fed cannot compensate

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