tv Squawk Alley CNBC August 26, 2016 11:00am-12:01pm EDT
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john fort made his way back from san francisco and striking a some what hawkish tone today saying it strengthened in recent months and sean matthews joins us to help us react to some of this. thanks for being with us. >> good morning. >> for being quote unquote hawkish why is the market up. >> when you look at her statement it's short-term hawkish but long-term still very dovish in a lot of ways and data depen debit which means the market feels comfortable that we'll be at low interest rates for an extended period of time. >> meanwhile you have oil in a bullish pattern today. gold up $12. at what point do we take price
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action as a real barometer of reaction to the speech itself. >> it's still an august day so the reaction is some what muted and we'll severe the next 30 or 60 days what happens and i still think that everyone feels kfr comfortable which is why you buy financial assets. they look really strong. >> to a certain extent the fed's job is to make sure that they telegraph a rate hike so there isn't a stampede out of certain asset classes and into others. do you see the comments as trying to repair the market or trying to foreshadow a hike in september? >> if you look at some they're starting to talk about rates going up over the last month or so. everyone is starting to have that feeling. december is right now 50/50 in a lot of ways but they want to
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raise interest rates and will look at data and make sure that everything is fine before they do. >> just seems like the data is pointing in the direction of a hike for a long time and there's every excuse not to do it. is the fed out of the excuses? the longer you wait based on the data you have today doesn't that introduce the risk that there will be another reason to delay a hike? >> well, the fear is that you're going to get behind the curve at some point in time certainly from an inflation expectation but you have the increases putting massive pressure on the middle class in a lot of ways that are giving them comfort that they won't get too far behind the curve. >> some of the data that we're getting, this revised gdp number, every time you want to say that something is running high you get something that pushes you back from that don't you? >> that's part of it.
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china is going through a lot of pressure in their economy and you have europe going through pressure. we're an island. our economy is doing well but from a global perspective there's still head winds out there that have to be worked through. >> do you see any of the head winds making u. s. stocks look like a less attractive alternative? because all signs appear to be pointing to the fact that the u.s is the best house in the neighborhood still. >> i agree. u.s. stocks are in good shape but it's expectation management as well. you have to start thinking about from a 3 to 5 year time and what are the returns going to be on u.s. stocks and they're mid single digit returns. and will be the right level and people have to stop thinking about i'm going to make 10 or 15% on he quillties every year. this is a new paradigm and you won't have multiple expansion occur forever.
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>> when do we bust out of this narrow range or at least the volume pattern for the past month. >> i'd like to know too. >> the market has been in a really tight range. >> can this go on? >> yes. it can. and i think the markets are grinding higher so everyone feels comfortable that they're going up. there's a massive convention in the marketplace and more cash starting to go to the sidelines so i think we had a good earnings season and people feel comfortable. i don't see a lot of volatility for the next couple of weeks and after labor day we'll see what really happens in the market and overall i would probably be a seller of equities going into the end of the year in a lot of ways and i think hah the mark place will start to focus in on what is the long-term value proposition of equities and that's mid single digit returns. >> you'd be a seller looking through any historical september
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weakness. 4th quarter tends to be historically positive. >> they rally hard in the 4th quarter but we had a significant rally over the last couple of months here and that will start to peter out into the end of the year. rates will stay in the ten year is really a low volatility rake as well. 150 to 160 on the ten year. curve is flattening but it's a relative value play. you look at relative value now and from an interest rate perspective we're at the high end of rates and from an earnings perspective and equity perspective we're in good shape but eventually people start to look at it and say let me take some chips off the table especially when we have rallies. it will start to get choppier hopefully but rates will certainly stay benign. >> is that what it is? taking chips off the table? you mention cash moving to the sidelines but the majority of
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s&p year end targets are exactly what we are right now. >> correct. which is why we'll see some pull back going into the end of the year and peel will be more cautious about where they stand in the marketplace. multiple expansion which has driven what we have seen over the last couple of years won't continue to happen. can they go lower? sure but from the perspective of where we stand on a global perspective, rates are really low. they can't go much lower so certainly the next question you have to ask yourself is where do i think earnings power is and earnings power isn't particularly great on a global basis and that's going to be the constraint in the equity markets. >> we covered some ground there. thanks so much for that. we'll see you soon. >> thank you. >> talking about yellen's speech and we will hear from stan fisher on about 20 minutes here on squawk alley.
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some reaction to yellen including the back and forth. >> and the markets clearly indicated that they don't think that yellen increased the chances that there's going to be a rate hike in september. >> a very interesting speech. only three photographs. >> and here's the case for increase that has strengthened in recent months. we did see stocks move down on that but as she always does she hedged the bet by throwing in qualifiers like this. the economic out look is uncertain so monetary policy is not on a preset course. there were other comments following up on this that hedged that. what does it all mean? yellen implied that every meeting was potentially live but did nothing to indicate that september was more likely than traders thought before and the markets reacted nationally to
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this. i said earlier this morning there was only modest risk to the upside here and the risk was to the down side. the s&p 500 moved four points since the yellen speech. that would indicate that the markets are pleased she is not going to do an immediate rate hike but there's very little upside for stocks. if you look at banks that move up on the initial headline they have since then moved to the down side. they're not anticipating an immediate rate hike. they tend to move in opposite directions here. utilities moved down and are now essentially up. that indicates they're not betting on a rate hike as well. it's now down below 13 again and we have been emphasizing september, october, november when you're into the elections they're elevated but even they are down on a daily basis. so the risk is to the down side. if yellen relationship really
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appeared hawkish and the market believed that stocks would react very negatively quickly but if she did not clearly tip her hat on september there would only have modest upside. what the market is pricing in this yearful. >> does this mean that overall the markets prepared for rate hikes or that it's always tomorrow and therefore the market is not prepared? >> the market can handle a modest rate hike. particularly with the economy improving. we're hearing better numbers. i think the economy can handle a rate hike. and frankly i would and i think everybody believes it as well and the markets can handle that and janet yellen acted like janet yellen today.
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even with her deputies saying time is right here in front of us she backed off on it. the initial headline same was hawkish but the rest of it was not and the markets are saying here she is. >> thank you, bob. don't miss our exclusive with stan fisher live from jackson hole in just about 20 minutes. when we come back this morning, more backlash from mylan as heather looks to close the book on the epipen pricing scab dahl and kara with the latest pulse from the valley and then patent trolls. the movie. why adam corola thinks it's a great idea. when squawk alley comes back. ♪ there's loof places you never wanto see 7.95."
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>> not close to session lows or highs and watching the tenure as well get up to 159 and now 154. >> health care and pharma are one of the worst performing this week. trying to change the conversation around the epipen pricing controversy. meg is back with the latest with the situation that's going to engulf the country club.
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hoping it's going to shift elsewhere. it's not going to happen today. now the drug industry is hoping this isn't going to seep into concern about other drug price hypes. you can see here they had a tough week down about 1.5 peculiar and today it is coming back a little bit. now the goal here is to push the focus on to what she calls the middlemen in the system. the pharmacy benefit management that had a tough day yesterday saying it incentivizes higher drug prices through the middlemen. we talked with them on squawk box this morning. here is what he said. >> surprised yesterday that mylan blamed pharmacy benefit managers that have nothing to do with the price hike and blame them for all the things of why they raise the price of the drugs. raise the price of the drug if you want to. we're used to that. it come with the territory but don't blame others for it.
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it's a simple thing they do when they're going to face competition. they raise the price of the product. it's nothing new but own it and take responsibility. don't blame others that have nothing to do with it. >> so the back and forth between the payers and the drug companies is nothing new, analysts are saying this usually takes place behind closed doors so today the analysts coming out defending saying these are two big reactions here. jeffreys with a note titled the allergic reaction to mylan's pricing. headline seems overdone. what you see is recovering a little bit today, john. >> thank you, meg. huge story. everybody talking about it. the election is only 73 days away and presidential candidates are still courting silicon valley but this week the silicon valley firm redesigned their homepage to say well you can see it there if you're watching on tv and radio, f trump. kara joins us to talk about the environment.
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we all know that silicon valley not only leans left it dives to the left so i don't know how much of a surprise this is but this is also a week where we saw tim cook and lisa jackson of apple host a fund-raiser for hillary clinton. what is this showing about enthusiasm for clinton or lack there of or just donald trump in silicon valley. >> it's pretty clear. i'm trying very hard not to say that word on the air because you'll be angry at me but it's just trying to get some attention to this issue because most people in silicon valley are opposed to donald trump. largely over issues about lots of things, intolerance and other things like that but the immigration issues which are now so confusing is based on a statement yesterday. but most of silicon valley leans democratic and other prominent republicans here like meg whitman but she has been
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incredibly tough on him. clearly this year but not as enthusiastically as they were for president obama. >> do you expect any long-term impact on this silicon valley political fabric. in some way will this make a less controversial republican presidential candidate more attractive to silicon valley. if they're more friendly to immigration issues? some of the other issues more porn there. >> anybody but. not many venture capitalists put that on that and put a statement up there on the website. and there's been increasing opposition to trump. this is such an outlying strange year. met whitman is not going to be
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supporting that next election. but it is unreasonable that all the others shifted over but the question is how much money can hillary clinton raise here and how much has she? she raised a lot. there's a lot of fund-raisers and is it as enthusiastic as president obama? probably not. a lot of bernie supporters now shifted over to hillary clinton but in general silicon valley is pretty much supporting hillary clinton. i haven't talked to anybody that's not or in some way giving her money or something. >> we have been covering the fund-raisers that the valley is holding. josh lipton reported he wants a friend in the white house if hillary clinton dpuz get elected but what is the risk that tech further alienates itself from washington if donald trump gets elected because that relationship has been framed for the last few years and perhaps they meet a friend either way.
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>> i don't think they care. i think they would oppose a lot of stuff. you know, tech is very powerful. what exactly would happen. immigration issue is very serious. obviously there's fight with whoever is in the white house over encryption and that's been a big deal and hillary clinton has been firm on that. she has talked about talking to people but she is on what the white house has been saying so there's going to be back and forth with any administration but i don't they they will back down from their issues around intolerance just like what they're doing in north carolina and indiana around gay issues so i don't think that's going to change that much and i don't think they'll cooperate with the trump administration just for political points on major issues at least. >> i wonder whether those in the valley critical of trump and speak out about it expect it to swing any undecided votes.
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>> i don't know. you know they have a lot of money. these people have money just like hollywood does or other groups and wall street and stuff and they're talking with their money essentially. i don't think they're trying to swing anybody because tim cook did a fund-raiser but he hasn't come out against trump very strongly and neither has mark zuckerberg. the only one that has is jeff besos and meg whitman which is interesting. so you're not going to see a lot of loud political discourse. because what's the point. you probably should because a lot of the things he says but you're not going to see enormous amount of protest. you'll see money just headed her way i think. >> all right. lots of money out there to head in one direction or another. have a great weekend. thanks for joining us. >> thanks. >> still to come on squawk alley, why adam corola is helping promote a new movie
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about patent trolls and don't miss our interview with stanley fischer. his take on janet yellen's comments many less than ten minutes. but lened hoto f justo come bacin a new diuise approachg mecare elibility? u y inyou can put off checking out your mecareptions u ye sixty-five, but now is a good ti to get thllli. in mind,r medica ocovers aut eighty p pcent of parb mel costs. the rest is up to you.
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>> jane wells is out with the full story. >> he's not putting any money into it but is supporting the whole idea. they don't make anything but they own patents and sue violators. seems an odd plot for a comedy. >> congratulations. >> thank you. >> you have been served. >> an indy film out of austin called the trolls focuses on a tech company that made a cell phone battery that never dice and is then sued for violating a patent. a lot of these cases are tried in east texas and a fan of the
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concept is adam corola that was sued over his podcast. >> you know how orange is the new black? what happened is the new excuse. >> two years ago he was sued piano personal audio that claimed the way he gattis tributes his podcast violates the patent. rather than settling he fought back. raised a half million dollars through crowd funding including 75 grand in a failed attempt to get the venue changed in california. >> we swore we were going to fight and we said we're going to crowd fund. we'll get my audience behind us and we'll fight these guys. we're going to stand up for all podcasting because once they're done with me they're going to go after joe rogen and whoever else is podcasting next. they're not going to have a sen you change so guess who has to get on an airplane and stay at a hotel and eat at a diner? guess who needs the occasional prostitute whatever it is,
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there's money going into that. if you're going to travel, you're going to travel right. but the point is i'd be back and forth to texas ten times and the hotels are getting rich and it's an entry. >> now personal audio hasn't responded to our request though they did drop the lawsuit. more from carolla including his thoughts on the presidential election as well as we talk to the films creators later today on cnbc.com. >> thanks. we're a few moments away from our interview with stan fischer. we'll get his take on yellen's comments and outlook for 2016 when squawk alley comes right back. it cost to mornize a school distric what's critil thinking worth
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the food and drug administration is advising screening for the zika virus at u.s. blood banks. it calls for testing of all donated blood and blood components. such testing is already underway in florida, puerto rico and other areas. syrian rebels and their families have been heeding the damascus surveillance bush. they're allowing them to move after four years of fighting left that suburb in ruins. >> the u.s. department of transportation requiring trucks and buses to be equipped with
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devices that would limb their speed. such action could save lives and also fuel. and prosecutors in the u. kflt say three men have been charged with fraud for selling horse meat as beef in britain in 2012. the u.k. food industry was rocked by scandal when investigators found horse meat was being sold in imported beef products. that is the news update this hour. back downtown to squawk alley. have a great weekend. >> sue, you too. thank you so much. europe is putting the final session of the week to bed. let's get to sarah here. >> let's take a look at the major averages. we are finishing up here in the green after a seesaw session on the back of janet yee yellen comments. u.k. consumer confidence recovered post brexit shock and rose in three years. dax also rising as well as the
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cac in france. checking on the euro this is a dollar story right now. euro weaker, dollar stronger, janet yellen says the case is strengthening for a rate hike in coming months. that's a bullish thing for the u.s. dollar. not a sharp move but stronger dollar. corporate news here for you from europe. take a look at ab inbev and sab miller there. they're reportedly planning to cut 5500 jobs after that deal closes and shares of digital security firm gemalto rising more than 6% after reporting better than expected results, topper former on the euro stock 600 today. that would be japan's government pension investment fund. it lost 4% in the last quarter
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on brexit and finally mario draghi, the head of the ecb skipping this year. it's the second year in a row that he has not attended. he did though give a big signaling speech in 2014 signaling qe in europe. governor kuroda will be speaking tomorrow. >> our one-on-one exclusive with stan fisher in a few moments. in the meantime mike is here at post 9. going to be interesting to see how if any fischer changes today's trajectory. >> he's obviously been the one that leaned toward saying not mission accomplished but we're close in terms of our goals and also he has a little more of a focus on financial markets. he doesn't want them to get too overconfident and take on too many risks so that's been his
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role at the fed. he was quite for maybe six weeks. kept away during that period when the fed was nursing it's wounds for having scared the market into a false start on rate hikes in the spring. >> you know, we heard a lot of fed officials speak out recently and the conversation from commentators has changed from fed officials disagreeing with each other to fed officials disagreeing with themselves and seeking a different tone from the thing that they just said a week ago. is that a risk? do you think he'll stay the line he talked about? >> i don't think it would be a risk that he's going to actively contradict himself. talking about shadings of commentary and we're in such an ambiguous place because a case could be made on either side for doing nothing right away or getting on with it that i feel like you can tilt a little way and it comes off as a radical change. interesting the market reaction here. sort of modestly net positive on
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second read. it seems as if janet yellen's emphasis on here's what we could do down the road means we're okay. we don't have to raise rates. >> the full speech is definitely worth a read especially this time around. >> let's get out to steve in jackson hole with fischer. >> i am here with stan fischer. thank you for joining us. >> thank you. >> when you were israeli governor and not israeli governor. fed chair janet yellen said the case strengthened for hiking interest rates. could you explain that more? what makes the case stronger? assuming you agree. >> we have had very strong hiring reports in the last three months on average and we have another report coming out next friday and and that will weigh a
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decision along with other data that may come in and the evidence is that the economy has strengthened. the problem with this economy is there are so many numbers every day. >> you have to try to figure out what is the main thrust of what is going on in the economy and that's the hard par. >> a small set of data would be the gdp data and it's lackluster. already at 2% and can't manage. half of that at 1% s. that the environment you juan to be raising interest rates? >> that's looking back and the numbers get revised pretty frequently and we want to be looking ahead when we make this he decision. not backful we're seasonably close to what is thought of as
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full employment and inflation rate and you ask what are the big numbers? and then we're getting some feedback. some reinforcements from what has been happening on a monthly basis. >> two questions you love to answer, should we be on the edge of our seat for a rate hike as soon as next month and should we be on the edge of our seats for more than one rate hike this year? >> it depends what stomach you have got for excitement so i don't really know. >> i think what the chair said today was consistent with answering yes to both of your questions but these are not
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things we know until we see the data. people get upset about us saying we're data driven. i don't know what the alternative is. toss the coin or what? >> that's one possibility. so it depends on what's going to happen. what data we're going to get and how strong it is because a picture is a very complex one. and that was an estimate and not necessarily a promise. do you feel like the fed is behind the curve here. >> i don't think the fed is behind the curve. we're in a place where we ought to be. we have changed obviously as the economy was weak for sometime and furthermore as inflation was
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slow to rise. >> we had been hoping for many years that the economy could break out into a 3% range. as i listen to the fed chair talk and others at the federal reserve it strike mess that we have given that up. 2% is about right for this economy and about as good as it can do and some of the things we thought were temporary now seem more permanent. and we haven't seen much change going the other way that to me is the critical question with
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regard to vote. >> they're trying to wake up the physical side of the government and saying we need help from you guys. is that the feeling of the federal reserve here that congress and the president should be working together to do more as well as accelerate productive? but it is so notable relative to history that we're the only game in town at how do you get the economy going that one tends to think about it and speak about it from time to time and there's political moments going up. there's significant elections in
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europe coming up. are those potential points of uncertainty that could or should delay policy? >> we look at the economy and if there are implications for instance, greater uncertainty about what is going to happen we'll see those signs in the markets. we're going to look at economic signals. we're not going to become political forecasters and the fed is not a political party. >> it's not going to influence whether or not you raise rates for the election. we'll look at the economy dataful those may have been effected by the prospects but we won't be out there taking polls on the election. >> finally you met yesterday with a series of protestors that are urging the federal reserve to reduce interest rates or keep
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them low could you speak to the idea that the fed should be taking more account, or not, of minority unemployment rates and whether or not that ought to be a me trick that the fed seems to move every time it comes down and then you start to tighten and so they never get to catch up. is that something that should influence your thinking? >> well, obviously we're interested in unemployment for -- i'm sorry, employment for everyone and we can't do our job which is a macroeconomic job without the economy as a whole based on one group or the other. we have to look at the overall picture and that overall picture is more complicated but it's the case that we talk in fomc meetings about employment for
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particular groups and take that into account. fundamentally with some attention. i think a reasonable amount of attention to the situation of particular groups. >> just so you don't get only from one side you get a lot of criticism from the other size. it's not that there are concerns about brewing inflation as well as asset bubbles. is that an abiding concern of yours right now? >> well, it is always if you're a central banker. you're always thinking about that. you're always thinking about inflation and those are things we're talking about and we have seen little signs of leverage lending and so forth a few months ago. we talked about it. seemed to have had some effect in quiting that activity down
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but we certainly look at the data and worry about the data and analyze them but we're not seeing a lot. >> is it an acute concern about asset bubbles? >> but not one that we judged and reached proportions in which we need to take that as our main criteria. >> thank you for joining us. >> thanks a lot. always a pleasure to talk to you. >> yes. stan fisher, federal reserve, vice chair. >> steve, great work all week. thanks so much steve. trying hard mike santolli to get some news from fisher but obviously pointing out that the jobs number will be key in decision making and the big numbers strengthen for a mike. >> it is perfectly sufficient or more than sufficient to justify a move as further data come into line. being squeezed into saying yes
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we should at least be open to the possibility of two rate hikes this year and in other words saying we're all on the same page here maybe the market came in on that suggestion. >> and in the longer term productive remains like a cat that's impossible to herd. it's just hard to get your bat to connect with that ball over that plate. >> exactly. and we're at this point, central bankers everywhere are running up against these things that they don't have familiar leverage to pull in term of getting them to move in a direction that they would like. productive is one of them and inflation is another. should we flip a coin or what? do you think that's common and felt across the board. >> it's very common and at some level it's understandable and
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people remember hearing about the flesh hold of 6.5% unemployment which of course was not about raising rates but they feel as if, perhaps, as things continue to get better, the fed has been making up reasons not to suggest that the targets have been met. i do get that but data dependence is what the job is. kind of said that is what the job is and i think there's no way to look at the economy and say it's radically changed or forced the fed's hand in one direction or another. it's ambiguous right now. >> is that what data dependent means? it's a move that radically enforces the fed's hand? i'm not a macroeconomic genius. when certain numbers hit a certain level the fed will be inclined to move but that's not how they're parsing it these days. >> very fair point because unemployment is there.
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i think they should be able to fall back on the idea that their preferred measure of inflation is not quite at 2% sustainably but it's moving in that direction at the back end of this year. we nudge up against it but you're right. essentially a lot of this is in the eye of the beholder. >> but then you have the fact that growth has been so stubborn. first half of the year still below 1% as we got today. bullard this morning said the fed should have a medium term growth plan. is that the fed's job in fisher didn't touch on that at all. >> maybe the country is. they dropped the ball in the lap of congress. he juans to steer the eyes of his colleagues in the direction of let's not fixate on this piece of the cycle and where we're going to be in another yearful he is trying to push for his own model of how things should operate from here.
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and you mentioned yellen's speech. she is more or less saying people think we're going to have a lot of room to cut rates in the next recession because that's the way it's been in the past so the fed has raised too much to get us into a recession. and we're not going to do that. so that's a different way of thinking as well. >> my favorite part is where she has a warning for future policy makers that if you suppress rates for too long and lay the suggestion out that rates will be there for a long time you might encourage financial risk taking which is a big piece of the criticism of today's fed. >> it's a big piece of the criticism of today's fed. i do think it informs yellen's orientation to forever peep kooep the prospect out there. you don't want to necessarily allow the market for a very long period of time to feel like we got this. it's 0 forever or very low forever. you want to keep injecting
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uncertainty in there and be hawkish in your language once in awhile even if it doesn't pan out naturally. >> the spreads. why is that important for viewers to pay attention to and what does it say about the economy's ability to handle another tough moment or rate hike. >> that is the huge question. i mean, essentially if they -- let's say they raise rates in september. they go up 25 basis points in the short end i don't think it's determined how the ten year note yield will react. if it comes down or done go up at all, in that event it would mean that the bond market is saying we don't think that the economy can handle many more of these. maybe the risk of recession is increased and certainly inflation is kind of being more snuffed out before it even gets rolling. so all of those things are what the bond market is attempting to price in although it's a complicated message because of the rest of the world. >> although we sold off a bit, the vix still remains 13 and change. >> it's low to the naked eye.
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it's actually really high relative to how calm the market has behaved so there's still a bit of premium in there and we're ahead of a summer weekend. premium always comes out ahead of a weekend now that we have the one known catalyst outhmm. >> good to see you, michael. michael santoli. as we said, dow's up now 23. very far from session highs, triple digit. we're back after a short break. like cfee. buthere's one thyou do.yoyoguys! the cloud-based devepment platformd predix from ge. buthere's one thyou do.yoyoguys! that iustrl-streng strength!
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fed speak obviously with yellen, fischer, esther george and bullard. steve liesman bringing all of this from jackson hole, and we'd love your thoughts how we capped this week here, steve. >> i feel like i'm covering the olympics. one guy here. you know, we have our -- our track and field and the other stuff, gymnastics. just had stan fischer who talked about the economy strengthening, and i think that's pretty important in terms of where rates are going. listen to this and then talk about the rate implications. >> we've had very strong hiring reports in the last three months. on average, as the chair said, 190,000, high as a month. we have another one of those reports coming out next friday. and we'll probably weigh in our decision along with other data that may come in. so i think the evidence is that
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the economy has strengthened. the problem with this economy is there are so many numbers every day. >> so what you have is, you have fischer suggesting, hey, the jobs report that's coming out in september for august is going to be very important and weigh in on their decision-making for the september meeting, and i think between fischer and yellen's comment she believes the case is strengthened for rate hikes, you have to put an increase in the odds for a september rate hike. and i also asked fischer about the possibility of to this year, maybe more than one? he said, yeah, it's there if the data's there. carl? >> steve when he talks about the big numbers behaving better what do you think he's referring to aside from labor? a side from the job market. you know, he did point out inflation is higher this year than it was last year. still not up to where the federal reserve wants it to be. you know, some of the manufacturing data looks like it
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may be turning. so he is right. there's an awful lot of data to process. the fed does so through a model that has not behaved all that wonderfully in terms of predicting the future, but what i hear happening here, not just from fischer but from other fed officials is, you've got two divergent stories. one of the gdp numbers really lame, around 1%, but much stronger job numbers. ehear the fed saying, following the jobs number. a better picture and mean more for us where policy ought to be rather than the gdp numbers. >> steve, our thanks to you. of course, a lot more to come from steve throughout the course of the day in jackson hole. >> carl -- carl. >> yes? >> you're coming back to me for the tee times and my outfit. that's right. you don't really want to hear what i have to say about fischer. >> wondering where steve's clothes are from orvis available now on amazon, i'm sure. thank you, steve. over to dominic chu, rack
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space, a big stock story . >> first, i wish i was wearing an orvis outfit like steve. anyway, announcing entered into a $4.3 billion cash deal to be acquired by apolo. as 3ds $32 per share, back to t beginning of august, a speculation about the rackspace acquisition by private equity. >> hiring an adviser to themselves and now a deal. we're watching the markets. still in negative territory today. the dow actually just touched negative territory, down 23 points. volatility climbing slightly on the back of fischer. we'll get you more market movers on the other side this break.
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well, blame it on stan fischer or not. shortly after his comments to steve leishman, dow crossed into the red. see what happens late other than be this afternoon. meanwhile, whether it's rackspace, now ulta down 15. stock stories are out there. >> big lots with earnings today, too. that stock down about 3.6% on a big revenue decline.
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one if not the only companies reporting today. >> and doing well after earnings. a beat in raise there, but splunk not doing well. despite a beaten raise because billings didn't come in with investors wanted. >> high expectations. a good weekend to everybody. over to headquarters and "the half." welcome to the "halftime report." i'm melissa lee in for scott wapner. top at this hour, long live long longer. janet yellen hawkish, kind of, sort of. she hedged again with that same line we've come to expect. the fed is data dependent. is it lower for longer? today's traders josh brown, jim nt
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