and fmoc receives regular briefings about the staff framework and sort of measures of various aspects of financial stability risks. and the current view of the committee is that financial stability vulnerabilities are hod wr moderate let's say and i'll go through a couple pieces if you look at the banking system particularly the large financial institutions, you see higher capital, higher liquidity. you see them more aware of their risks and better able to manage them with stress testing and if something does go wrong, you have better ability to deal with the failure of those institutions and so therefore you don't see high leverage, you don't see excess risk taking in great quantities what you saw before the crisis if you look at household balance sheets, they are in much better condition. if you look at nonfinancial corporations, you see -- you do see relatively elevated levels

of borrowing, but nothing that suggests, you know, serious risks and of course default rates are very low so those readings look okay. i should mention also that for large financial institutions, they are no longer funded by a lot of short term wholesale funding which can disappear very quickly. so they are far less vulnerable. overall those aspects suggest low levels of vulnerability. you identified the really one area which is an area of focus which is asset prices. in some areas asset prices are elevated relative to their longer run historical norms. you can think of some equity prices, you can think of commercial real estate prices in certain markets. but we don't see it in housing which is key and so overall, if you put all of that into a pie, what you have is moderate vulnerabilities in our view. in terms of whether we have the tools, you know, we have some

tools and i think we certainly will use them. we have -- i think the stress test is a really important tool that we have for the largest financial institutions and for the smaller financial institutions we regularly use that as a way to test against various, you know, market shocks certainly for the larger institutions. >> more on the regulatory side, the fed might soon power to dech stricter regulations to apply to banks. and so i had a couple of questions about that for crar, the stress tests, since that is based around having a punitive penalty of potentially being able to restrict dividend payouts or stock buybacks, is there any

logistical challenge that could be posed if you don't have ccar every year for certain banks is it possible to have ccar not on an annual basis and my other question is, you know, you've talked a lot about how size isn't the only thing that causes banks to pose systemic risk and i was wondering what other factors do you think would cause a bank to potentially pose a systemic risk >> so this is a matter that congress has under consideration. it is not something that -- so congress is looking at the raising the threshold for enhancing from $50 billion to $250 billion while allowing us to reach below 250 and applying the standards where we think it is appropriate and we haven't been shy about doing that we are fully prepared to do that but this is a decision that is in the hands of congress

the version of the bill i think that passed the senate did give us the ability to do supervisory stress tests periodically as opposed to annually is the language we haven't made any decision about that at all. we would want to think very carefully about that and, you know, whatever we do decide, we put that out for comments is it low divisigistically poss? i would think it would be, but certainly not something that we've decided do and the second question you had was -- [ inaudible question ] >> sure. well, i guess 9 nethe next thin the list would be activities commercial banks that do deposit taking and lending and don't speculate in markets, you know that is one business model another business model might be, you know, if you think of a hedge fund that is what they do,

they are speculating on markets. and so very different business models and different levels of risk and that sort of thing. so that would be the next thing on the list. i mean, there would be a range of things. how well capital lized is the institution. mainly those things. >> i'd like to go back to the idea of the additional growth that you are getting from the fiscal package and ask you how much you think comes from the supply side and how much from demand you use words like might and should about what results should come from this process but around the table, did any of the presidents or governors report that businesses are actually getting ready to spend? is this something that is going to happen? do we know that there is going to be a supply side effect or are you just getting at this

point? >> remember that there are 15 fmoc participants and each of us have his or her own forecast so there is a real diversity of views on this particularly on these fiscal issues. if i could try to summarize, it would be that i think broadly speaking participants believe there will be meaningful increases in demand from the new fiscal policies for at least the next let's say three years i think there is a general view as well that supply side issues, that there could be supply side effects as well. and you would see that again through higher investment, driven by lower corporate tax rates and the experiencing of some investment which would tend to drive productivity over time. if you make investment more attractive, companies should do more of it it is uncertain though i mean, i spent many years of my life working with companies and discussing and the cost of capital is one of many factors that they will consider. it isn't the only factor or the

principal factor but it should result in more investment, anden investme n vit should drive productivity. at the same time, you should see some labor supply effects over time from lower individual effective tax rates. the whole thing is very uncertain and particularly the supply side effects should and would be expected to take longer to appear and would be less certain in amount. so that is really as good as you can go we've all looked at the literature carefully, we've discussed it with our in-house experts and come up with our own views. and they are disparate, but i would say that is about why the views are. >> hi, chair powell. just to go back to trade policy if you don't mind, you said that participants today generally feeling the trade policy shouldn't necessarily affect the current economic outlook, but

i'm wondering if there are fears about inflationary effects should there be trade barriers imposed. and secondly, you know, we might be on the verge of a tit for tat trade war with china wondering how that might dampen the global economic outlook going forward should that occur. >> at this stage what our fmoc participants discussed, it wasn't -- it was just that this is a new risk that had been probably a low profile risk which has become, you know, more prominent risk to the outlook. that is really what people are saying they didn't get into talking about particular -- where inflation or growth or whenever it would be. so that is not something that did come up. you know, your second question, sorry, was china >> yes in the event that the united states and china end up in a tit

for tat trade war or any other retaliatory actions that are imposed elsewhere against the united states, what that mean for the global economic outlook and whether that was something that was discussed and are you worried about. >> that is not something that came up in particular. and let me say, we don't do trade policy at the fed and i'd bein be reluck tapt nt to comment ony particular situation with any particular country >> does the interest rate hike today suggest that americans are being paid enough? are you satisfied with the rate of wage growth right now >> as i mentioned, we've had unemployment decline sharply since i guess 2010 when it peaked at 10%. and we've seen only modest

increase 23 increases in wages so wages in theory should represent inflation plus productivity increases you should get paid for your productivity plus inflation. and productivity has been very low. inflation has been low so these low wage increases in a sense they do make sense from that perspective on the other hand as the market has tightened, as labor markets have tightened and we see reports of labor shortages and that groups of unemployed are diminishing and the unemployment rate is going down, we haven't seen, you know, higher wages and i think i've been surprised by that. and i think others have as well. in terms of what is the right level? i don't think i have a view on what the right level of wages is, but i think we will know that the labor market is getting tight when we did see a more meaningful upward move in wages.

>> if the economy behaves as the fed is predicting, by the time of the midterm elections, the rate will be -- keep on rising and the prime rate will be well above 5%, a level not reached in ten years for what is the base of consumer credit and we know that historically raising rates especially in campaign times has never been very popular in the white house. does this prospect of a possible pressure and economy concerns keep you awake at night? >> no, that doesn't keep me awake at night we don't consider the election cycle. we're looking carefully at our assigned responsibilities of maximum employment, stable

prices and that is really our focus you can count on us to stay focused on the jobs that congress has signed us and count on us to use the tools we have to achieve them. you're right that is the highest rate by the way. i'm hearing the ten year thing a few times and it is true that rates are higher than ten years. on the other hand the economy is healthier than it's been since before the financial crisis. so it is a healthier economy than in ten years. the financial crisis was really just getting going ten years ago. >> and i'm curious if the fed would be willing to tolerate an inverted yield curve we continue to see the spread from the two year and ten year tighten even with longer term yields coming up since the beginning of the year. this is a dynamic that has typically proceed seede typically preceded recessions fp so i'm curious if you have discussed that, if you would be willing to push back against that if that is a dynamic you'd

be comfortable with. >> it is an interesting question and there are a range of views there. i think it is true that yield curves have tended to predict recessions if you look back over many cycles, but a lot of that was just situations in which in-234r5igs was allowed to get out of control and the fed had to tighten and that put the economy into a recession that is really not the situation we're in now so i don't know that that is -- i don't know that -- i don't think that recession probabilities are particularly high at the moment, but having said that, i think there are good questions about what a flat yield curve or on inverted yield curve does it is hard to find in the research data, but nonetheless i think those are issues that we'll be watching carefully. thank you very much. >> and that is federal reserve chair jerome powell just concluding his first press

conference as fed chair after raising rights sixth hike since 2015. welcome to the "closing bell." >> and as we said there, the first press conference drawing to a close let's look at what it has done to markets initially it was a sort of slightly dovish interpretation, it allowed stocks to rally to the extent we were up about 0.6 to 0.9%. and then slightly more hawkish interpretation particularl powell pointed to the ranges as to the median level. and stocks sold off again. >> the dow i think was up about 2 250 at the highs and then negative and now we're up about 100 again so just near the february highs. and of course all of these are multiyear level. >> and similarly the dollar did have a decent move higher. it was up already -- sorry, down a bit and as sold off since

then now down 0.7%. so even when we got that reinterpretation of hawkishness, you might typically have expected the dollar to recover it didn't cover its selloff and in a 10-2 spread as well have maintained its position as well. a steepening yield curve and that is why the banks have continued to outperform today. >> they are having a nice session. dow ramping about 130 points right now. powell was asked about low productivity to the impact of tariffs and trade. to the spending as well that we're seeing come down on the fiscal side. and i think he chose to kind of artfully dodge saying too much on any one of those things >> you'd also have to -- interesting to see what steve liesman says when he joins us, but in terms of what the growth forecast were and how successful the fiscal stimulus will be. i think he shot it down, but he wasn't taken by the same

enthusiasm perhaps from the administration he was a little concerned about the fiscal deficits to come. >> he did mention that the so-called supply side changes that are coming are going to take longer to manifest. and it really only has been about a quarter's wofrth of dat to see the effect of all of this so markets have lad a hard time figuring out what to make of this >> and yields are up which you might have thought would mean the dollar is up you also might have thought that would be bad for gold prices if there is a more attractive yield. but good for gold prices gold price up a pretty healthy 1.5% or so either way, we have more on the conference steve liesman is now ready to join us with his key takeaway. initially dovish interpretation from the statement and then things got a little more hawkishly interpreted once governor powell started talking. >> yeah, i think it is chairman powell though. i don't want to correct you, but that is what it is now >> it is indeed. my bad >> it is governor powell not too

very long ago. you are correct about that look, i don't hear much more hawkishness in his commentary than in the statement. i think the statement and the summary of economic projections pretty much tell you what you need to know which is that the fed is kind of biding its time i thought -- i don't know if we have it available, bruh his response as to my question about the tradeoff between unemployment and inflation is very interesting and really fascinating development here that the fed did so much to lower the outlook for the unemployment rate, increase the outlook for growth, but really not change the inflation outlook very much at all. here's what he said i think. >> after the crisis unemployment was 10%. it is now 4.1% you've only seen very gradual upward pressures on inflation and wages despite that very large increase that suggests that the relationship between changes in slack and inflation is not so tight. but it has diminished, but still

there. so i think when you see those small changes in unemployment, that cinchly simply reflects th flatness of the phillips curve >> the phillips curve is the relationship between unemployment and inflation i thought he said something else that was interesting he was peppered about this decision or that decision. and he said we took one decision today. and that decision was to raise rates by a quarter point the other stuff is projections those are not decisions by the committ committee. the only decision is to raise rates by a quarter point and of course the market has to worry about a quarter point here or there pretty soon you have 100 basis points but certainly the outlook is up when it comes to the interest rate youts loooutlook. but not really the inflation outlook right now. >> you set it up as if there was more to come from chairman

powell there why, steve, do you think we saw yields rise so significantly initially and then fall back afterwards >> well, there is something that i call the liesman bounce which is the period of time in the ten minutes after a decision by the fed or by a speech in which rates do this. and i don't think that it really means very much in the first 10 or 15 minutes. there is an initial reaction that has to do with i think how people are positioned relative to what they expect. i like to say if there is everybody on one side of a ship and it is listing this way and one guy goes over, you don't expect very much expect if that one guy weighs 350 pounds. i'm not -- i don't see very much here to change the outlook dramatically i think if you are thinking about 2019, 2020, maybe that is the case but i don't think the fed will

go that far as far as they projected if they don't get the growth to go along with it so in a sense, guys, what you have is meet the new boss same as the old boss. not a very different outlook here relative to it. i will say one thing that is significant, he ended about i think 15 minutes earlier than normal >> i was going to ask you about that >> but he seemed to take as many questions. so much more efficient in terms of his answers he didn't want to talk about the whole trade going on my guess is the minutes and fed speakers from around the table will have more to say about the trade outlook. he didn't want to really talk all that much about how to differentiate between the yourt look for supply side effects and demand side effects when it comes to the tax cuts and stimulus but much more efficient i think in answering i'll have to go back and count, but my sense was that most of

the folks who get to ask questions got to ask questions he just did it a little faster >> and steve, stick around we'll keep the discussion going. rick santelli is joining us as well the yield curve steepened. what was your interpretation >> my interpretation is that it still looks like it will be a horse race on jumping the broom with ten year note yields closing above 2.90 as a matter of fact if you look now, every maturity is lower except for tens and they are unchanged. that is luge the biggest collateral damage was the dollar index gave up all yesterday's gains. it lost its try to get above the mid closing point of the year at 90 1/2 it lost the 90 area that trader has been using as a pivot for weeks. and it is now around 89.75 is few things real quickly what he said about the dots, i just wanted to jump on anxious

and he we airplane to d.c. and sheik his hand this fast forward mechanism that markets seem to have, most of the time they are forecasts, their dots are not accurate. and i'm not saying that that is a bad thing. hard to predict the future so i'm focusing on action today. i think he did the markets a great service. ultimately we may have less volatility i think if i had to summarize, i agree with one comment steve made, listen, i've been in the marketplace toward the tail end of miller, i saw volcker come in, greenspan, bernanke, yellen. this guy is less feeling and it feels great. to listen to a man answer the question without delving into the theoretical mush-mush that means nothing to those who don't understand what a errrorschach s refreshing but what i respect most is the -- >> is that miller light? >> what is a rorschach

>> you don't know what a rorschach is >> a rorschach test? i'll draw something and you tell me what you see. >> i see the fed with four tightenings this year. >> exactly >> and what you see in the doodle tells us something about you. >> rick put his finger on the reason why it is a shorter press conference you do not get a theoretical explanation from powell. but i also think it is significant here, powell is not overwhelmed by the theory in the sense that we have these concepts, economists have these concepts of for example the right unemployment rate are or the right unflaigs rates, the right interest rates rate. >> he is not an economist in. >> and he is not overwith hhelm some of the concepts in his congressional testimony, he said look, the right unemployment rate might be 4 or the nonaccelerating rate of

unemployment might be 4, but that means that it could be 5.5 or 3.5 and so he is not -- he didn't seem to be making policy based a whole lot on theory. it is more like about what is in front of your face and i guess that works for a while and it may work for a while. it could be a little dangerous to do it that way, but he is much more of what is in front of your face, what does the day it show rather than what the theory suggests >> okay. stick around let's see what this all means for equity markets bob pisani joining us a yo-yo session. >> yo-yo, rorschach, very good way to describe it we are pretty much unchanged we've had a lot of a lot in to get to unchanged, but what this is all telling you is that the market is very sensitive to any perceptions that the fed is getting ge

getting aggressive or less aggressive some heard him being more hawkish, others heard less hush i hawkish. let me give you an example booing oig started to move down and it is a proxy for trade war. he made a comment fmoc participants reported that they had heard concerns which were relatively new about future trade actions. is this a startling thing? of course not. but boeing which is positive went into negative territory as he was making those comments and you see he did has bounced back so when people think about it, it is not really any kind of serious commentary that will change people's perception one thing that did happen, we saw tech stocks weakened particularly some of the fang names. google, microsoft for example. netflix moved down rather quickly. nothing particular in technology, but in the sense that those are the most actively

traded stocks, they moved down faebl h facebook has been positive, but it too came off of its highs bank stocks did move up a little bit. kbes, you can see by and large that has held up so my position here is the rorschach test if you could hear a little bit of hawkishness, dovishness, overall it seems the mar get is saying that he hit just the right tone back to you. >> rick, only thing that i'm wondering and we'll show the volatility gauge for a moment, if it is now more about practice over theory and we're not going to telegraph and lock this all in, does that mean when things are open to anyone's interpretation a more volatile period >> no, i don't think so. i personally think trying to -- i agree with bill gross. to think that we're going to have an overnight rate somewhere

between 3 aboutment.5 and 3.75 e ten year note can't get above 2.90, i don't know to me, there is a lot about living in the present. i think the chairman is just spot on. and i think over time the market is going to really enjoy and learn more from their actions in the moment than it is about all the theoretical possibilities in the future that rarely come to fruition >> guys, we will keep you all and move on to news we have on the spending bill. >> the white house getting behind the $1.3 trillion spending bill that lawmakers have been hashing out here on capitol hill house speaker paul ryan went to the white house this afternoon to present the package to president trump. ryan's office saying in a statement that they had good conversation about the wins that republicans are delivering for the president and that trump is supportive of the bill the white house echoed those

k34e7b9ss comments saying there are shared priorities including rebuilding the military, border security and money for the opoid crisis now, the president's support is important because he is always an x factor in negotiations. he can be a volatile negotiating partner and the fact that he supports it means that this clears the deck for the government it remain funded through the end of the fiscal year the house does appear on track still to vote on this bill on thursday with the senate following suit after that. of course the president will have to sign it once it finally passes back to you. >> thank you very much perhaps that feeding into this market response as much as anything >> indeed. let's talk more about the market response the nasdaq saw some big volatility during chairman powell's testimony let's head to bertha coombs with some insight on what has been moving >> well, facebook for one providing the biggest point boost today to the nasdaq 100.

reversing mid-morning after we got reports that mark zuckerberg is prepared to break his silence on the cambridge analytica scandal as soon as today those the stock is off of the highs, the gains today are coming on strong volume which bodes well for the stock tuesday saw its biggest one day volume for the stock in four years as it extended gains it has now cut a lot of its losses and facebook's peers in the certainly networking sector also rebounding though they too are still do you know fwn for t also cutting their losses substantially. on the flip side is amazon lower today after its valuation closed above that of google parent alphabet yesterday. and when you take a look, that is where the weakness is today in large cap tech. and that is where we've seen the biggest selling here after the fed's decision the fact that the nasdaq composite is up at all is really coming from small caps, russell 23,000 higher, some names like

arena pharmaceuticals in fact getting a new high and groupon which you could put into the social aspect in terms of social shopping and coupons also higher as well. back to you. >> bertha coombs up at the nasdaq 3:30 eastern time. half an hour to go until the market closes. and we're still tdigesting the decision to raise interest rates followed by the first press conference from new fed chief jerome powell. the needle they are trying to thread there is the fed raised the growth forecast, lowered their unemployment forecast, but didn't do much on the inflation front and the market response has been kind of all over the place as a result. dow up as much as 250. >> that one phrase in terms of talking more about the ranges on the dot box. which for a moment was interpreted as hawkish and then people came back to where they were again and that is where we kind of stand at the moment.

market is essentially flat >> and now up about 50 points and the nasdaq is negative but look at the russell, it is up three quarters of 1% at the moment >> if we look at some of the sectors, some of the interest rate sectors are doing well like financials are up 0 pnt .6% but really the outperformer is energy less related to the fed decision >> and dollar down about two thirds of a point will that let's bring steve liesman back into talk about all of this. some of the takeaways from this first meeting. but what do we say sixth time they have raised rates in the last couple of years >> yeah, let's not lose site as we try to understand it and dissect the powell press conference of the news today the federal reserve did raise interest rates the federal reserve also said it expects its next move to be raising interest rates the federal reserve also increased its outlook as you said for growth. decreased its outlook for unemployment but didn't change the inflation much

and there was one thing real quickly that was sort of confusing in the statement because they did make note and i think the way i understand this is they are making note of this weaker first quarter growth that we have which is below where it was in the fourth quarter, but overall saying the economic outlook has strengthened here is some bullet points on what fed chairman powell said, i call it powell on the podium i don't know if that is available for you, but if it is -- he talked about the relationship of inflation and unemployment he said maybe the relationship is less certain than it was before he talked about the tax cuts, a little reluctant to say that they are supply side but he does see better growth from the tax cuts as well and finally this issue of what is a forecast and what is the decision by the fed. he said we only made one decision here and that was to raise rates. the other stuff are just forecasts, not decisions >> rick, come back in and join us as well clearly we see yields

essentially stay flat. maybe slip a little bit. but the reaction in the dollar pretty pronounced given not a huge change in yields. >> absolutely. as a matter of fact, this is really fascinating because it is the one area traders have been talking about for all of 2018 and indeed for part of 2017 that when the world's premiere central bank with the premiere economy turns the battleship from excessive stimulus into less that this should have had a more dramatic upward effect on the foreign exchange side on its currency i had ex-fed governor mark olson on today and we had some this discussion and his answer was that the gldollar index in the upside down world we're in, where certain central banks are still adding much stimulus, but we still have negative interest rates, that the dollar is more and foreign exchange in general is more of a flows indicator than it is a monetary policy indicator. and the more i watch it, the more i think about his answer, i think the more i agree with that

premise. >> hey, rick, can i ask a question >> yes >> does -- i'm always worried about this because sometimes the market says all right, this is not a big deal and then it wakes until tomorrow morning and has a hangover from what it didn't know it was doing the day before does the market wake up tomorrow morning and freak out about this 3.4% fed funds forecast for 2020 it seems like it is taking it in stride today i can understand why even powell himself said that is three years down the road, don't worry about it but we all know the old frog boiling analogy. you put the frog in the hot water and turn up the heat ever so slowly and pretty soon you are the meal so we don't want our investor viewers to be the immediate here is there is a reason that the markets tomorrow might be concerned here >> you know, i think the markets could obviously have some type of fit tomorrow. and if it did, i'm thinking it would be more of the short end giving up ground

but to your general point, no, i don't think so i think that many in the market have become much aggressive trading the long picture ben bernanke and janet yellen steered the canoe in that direction. i think jay powell is not -- he is very frank about it the notion of not only picking who will win the world series when you are in july, but also telling me what the lineup is going to be and what batting average they will have >> you know i know all those things already and i'm going to be 100% accurate but let me spin a tale for you from those numbers and then you react to it the tale is this what you are going to do, you will have this ramp up in growth declining unemployment the fed will ramp up the funds rate and what is it doing it is clamp down on that growth and what you see in their own forecast is growth goes up and it comes back down to 2% so there is an outlook that the fed will get tight

and he even said moderately tight down the road. i just wonder not so much bonds, but especially stocks, do they trade with this idea that you could have a restrictive fed after for most of many traders' lifetimes especially those who aren't older than say 35 this fed has been accommodative it has been a wind at your back. >> you know, i think the best answer is most people who buy a ferrari understand where you put the oil and the water and where you put the windshield washer fluid. okay and to that he said, what you are describing, people that trade the market are going to know when retail sales is strong that it will have an affect on the way the way fed perceives monetary policy. i don't think you need to lead them by the sneeze there is this assumption that people that play in the markets need kay i don't know to draw their charts and it is not true. in might have opinipin my opini

>> people who own lincolns like you, they know where to put the oil. but the ferrari guys, they get somebody to do it. >> we'll have to leave it there. people that buy ferraris also know what a rorschach test is. they tend to anyway. >> is that an american thing >> i don't know. but i do know that it was named after her man rorschach who lived from 1884. >> we have news out of facebook. let's get over to julia boors n boorstin >> mark zuckerberg just posted on his facebook page and he says he wants to share an update on the climate change situatiambria situation. he says we have the responsibility to protect our data and if we can't, we don't key serve to serve you i've been working to make sure this didn't happen again the good news is that the most important action to prevent this from happening again today, we've already taken years ago, but we also made mistakes. there is more do and we need to step up and do it.

he then goes through a time line of events starting in 2007 when they launched the facebook flat form he then goes on to 2013 when this cambridge university researcher created the personality quiz app that was installed by around 300,000 people 2014, they announced that they were changing the platform to limits the data that apps could access 2015, and i'm summarizing, they learned that they had shared the data and against the policy so they banned the app and demand that climate change certificate guy that they deleted all improperly acquired data and they say last week they learned from the guardian and new york times and channel 4 that cambridge analytica may not have a deleted that data and they immediately banned them from using any of the services cambridge analytica claims they have already deleted the data and has agreed to a forensic audit to confirm this. he also say we are working with

regulators as they investigate what happened. so he goes on to say this is a breach of trust. they need to make sure -- a breach of trust between facebook and the people who shared their data with us we need to fix that. he goes on to say here that they already took the most important steps a few years ago to prevent back actors. and now he outlines saying that we will investigate all apps that had access to large amounts of information before we changed our platform to dramatically he dues data access and we will conduct a full audit of any app with suspicious activity he says we will ban any developer that does not agree to a thorough audit if that includes people that were misused. and then prevent other kinds of an bulss, reach mabuses

they will reduce the data you give an app when you sign into only your name, profile, photo and e-mail address we will require developers to not only get approval, but also sign a contract in order to ask anyone for access to their post or other private data saying they will have more changes to share in the next few days he says you want to understand which apps you have allowed. in the next month we will xi show everyone a tool at the top of your news feed and an easy way to revoke the apps permission to your data. we already have a tool to do this in your privacy settings and now we will put it at the top of the news feed to make sure everyone sees it. he says beyond these steps, i believe these are the next steps we must take to continue to secure the platform and he says i started facebook and aim responsib i'm serious about doing what it takes to protect our community

this issue should no longer happen with new apps today we will learn from this experience to make our community safer for everyone going forward. and then he thanks everyone for continuing to believe in their mission and has worked to build the community. he says i know it takes longer to fix all these issues than we'd like, but i promise you we will work through this and build a better service over the long term so that is it. he has spoken and outlined what they already did, not that it helps them with this current situation, and what they are planning to do now these three different points where they will give consumers more awareness of what data they are sharing and the limiting the data that apps have access to. it will be interesting to see the repercussions. this could be bad for apps it could limit the traffic and data that some apps see which could make it harder for some apps em smaller businesses that are relying on the facebook platform and it could also impact the advertising revenue that facebook sees if people are

not and apps are not so integrated into gaefacebook clearly the stock seems to be reacting fine. up fractionally on this news but it will be interesting to see how much they prioritize consumers' responsibility and their users awareness much what data they are accessing and how they are interacting with these different apps and they probably assume a lot of people have downloaded apps over the years and don't even realize how many different companies they are sharing their information with >> that is the thing i find most interesting. there are lots of things we can pick apart, but toward the end when he talks about the remedies and he says we want to make sure you know which apps are allowed to access your data. he mentions how in the past you can look at this in the privacy settings which i would imagine most users don't look at day to day and they will put it now at the top of your news feed. so i guess this is going to make users of facebook much more

aware of which apps do and don't have access to their data. and the question therefore as you rightly say, does that restrict which apps will be most active on facebook and does that hurt facebook's revenues going forward. >> it is really interesting because a lot of apps even like uber that you can log into through facebook and there is so many different services and apps whether a shopping service or ordering food or all these different services that you can do through facebook and facebook is woven in toot fan brick of what so many people do on their mobile devices or their computers because that log-this is already there and a lot of people are given that option would you like to log in with facebook often it is just easier to log in through facebook. and so it will be interesting to see the ripple effects there on that app universe. and also in terms of the privacy settings that you mentioned, in the past couple years specifically since really 2015, we've seen facebook make a number of pushes to make sure

people are aware of what their privacy settings are, reminding people to check things out and enover tven over the past no years, facebook has increased the default settings and that was what they changed in april 2014 when they changed the data sharing for app developers but i think this is going to be really interesting to see how this plays out, what investors think, what the repercussions will be on ad revenue. but even if facebook loses a little bit of traffic due to the integration with apps, it is better for them to have the trust of consumers because without that, as mark zuckerberg mentioned, the platform is far less valuable. >> facebook shares still fractionally hire. this is a 937 word statement there is a term for this used online tld wrch tldr too long didn't read if you can't boil this down to one or two takeaway points as

far as facebook and zucker bhurg a burg are concerned, i'm not sure -- >> he does take responsibility in this which is something people have been wanting him to do clearly it has taken him four or five days to do it but if we dive into the key issue here, he says very clearly in 2015 we've learned from journalists about the data being shared they didn't ban cambridge analytica at that point and they asked cambridge analytica to delete the data. and then the following paragraph, he says last week we learned it is possible that cambridge analytica may not have deleted the data and we needily banned them. so still a two year gap. they realized that it hadn't happened and so we ask how many other circumstances might they have thought things had been done that haven't happened. >> and it also to me hangs on this claim that zuckerberg is making where he says in regards to 2015 when they learned that

the third party had shared this app data with cambridge, he says it is against our policies for developers to smar dhare data wu people's could be september. was that true at the time? >> so what he is outlining is thatbe september was that true at the time? >> so what he is outlining is that app developers could legally collect data on the friends of the people who had downloaded their apps. what was illegal was the manner in which this data was sold from the app developer to cambridge analytica. so in that issue the sale of the data was flagged back in 2015. facebook confronted cambridge analytica, cambridge analytica said we did this all in good faith. we thought we were buying this legally. we'll delete it. and they got a legal certification that they cooperated with facebook to delete that data of course this is data zeros and ones you can always ask are there copies and that is being asked now. but one of the points that zu zucker bhurg is making is that

they know that there is data out there from before they changed the laws in april 2014 or changed the facebook rules in 2014 so they will go back now and check into all of the data collected before the rules change so he is a waiver tware of the certification is not necessarily an accurate description of what happened but i think the bottom line here is he is taking responsibility he is outlining the time line of what happened. and from what i understand, employees in particular have been asking how did this happen, how did this happen. so here he outlines the time line and then he talks about the three steps, two of the ststeps about the apps and limiting access to data the first step is looking into the data that was collected before they changed the rules which is the data similar in question here. the second step is restricting current develops' data access to prevent any other kind of abuse. and the third step is increasing

the consumer responsibility and awareness of these privacy settings and encouraging people to delete the access that they are currently giving to apps that they are connected through facebook so sort of like looking back at the past data that was collected, looking at the way data is currently being collected and then putting some of the responsibility on consumers. >> julia, thank you. the full statement which is nearly 1,000 words is on cnbc.com you can go right there, look at the whole thing for yourself share up nearly 1% right now our next guest has called for the european union to blame facebook joining us now, welcome. >> good afternoon. >> what is your specific concern about facebook's handling of in this matter? >> european specific concerns

are to of course the breach of the right of privacy of people and the second i think and totally my opinion that it is a big threat to democracy and individual peoples rights. and i'm sure it will be very strongly said by the states man, by the residents and prime ministers tomorrow in brussels because we share the same concern that this is a very serious issue and if you can let me give you my view, i think that the tiger got out of the cage in this case. >> do you think there is now an appetite in the eu to increase regulation on facebook and other social media companies >> we are waiting for the implication of the new regulation it will happen in may this year. and this regulation foresees

sanctions and penalties. and i'm sure if proven and if there will be such a conclusion ever investigators, it might be this case. but of course before the application of the general rules. so we will work with the current legislation. >> there have been calls from lawmakers in europe and the uk and u.s. for mark zuckerberg the founder to appear in fropnt of lawmakers. would you like to see that happen in the eu >> very probably he will be asked to come to some session of parliament i think he will be good if he explains what happened and what measures they will take not to let this happen again because this is a very serious breach of trust. and a lot of work has to be done

to regain it >> commissioner, thank you very much for joining us. now, an hour or so ago before we got the comment from pmark zuckerberg, i spoke with the chair of the digital culture media and sport committee in the house of parliament in london. i asked him whether it was fair for facebook to claim that cambridge analytica had misled them or whether ultimately this fallout was on facebook itself >> this is i think facebook's responsibility they knew -- first they would have known in the public domain about the data breach involving cambridge analytica would have been in december 2015 when it was first reported in the press. they didn't ktnidn't act until y last week. so they had two years of knowing about it and didn't go to cambridge analytica and make sure that the data had been destroyed as they had requested. what they said today is that they were back in 2011, 2012,

there were well-known concerns within the company >> i then asked if this would lead to more regulation. >> i think what we need to do is increase the powers of the information commissioner at our regulator in this space. they have the power at the moment to request data as part of their campaigns but they don't have the right to go and get access to that data if the company won't supply it we need someone who can go behind the curtain and look at the data sets and algorithms so we can be sure that they are complying with uk data protection law we can't just take their word for it that they are >> it was damian collins, chair of the rely swranevant committen parliament and saying they want to increase the regulation whether or not mdark zuckerberg eve statement will preempt that, we'll have to speep and you have mo see. >> and sheryl sandberg sharing

mark zuckerberg's comment and weighing in herself, she said they know this is a major vie election of people's trust and they sdeeply regret they didn't do enough to deal with it saying we have a responsibility to protect your data. and she lhighlights a couple moe things, including taking steps to reduce the data you give an app when you use facebook log-in and also making it easier to understand which apps you have allowed to access your data. so those two things minimizing potential risk and there was also a separate blog post posted by facebook proper, not by either one of them called cracking town down platform abuse and they outline these different six steps that they are taking 15iing that they will b saying that they will be reviewing the platform and also telling people about data abuse. they have been criticized that they have known and didn't alert people here they say they will tell

people including building a way for people to know if their data might have been accessioned via this app in question here. this digital -- this is your digital life, are the app that solgd t sold data to cambridge analytica. if we remove an app, we will tell everybody who used it and they have a couple points about access and they say they will reward people who find vulner abilities they will expand the bug bounty program. so reiterating really the thoughts from mark zuckerberg about how much data they will be sharing. and also a lot more transparency in terms of how that data is used >> thank you very much. stock price for you again, it is up a percent but not really up from the course of the statement. it was up higher than this earlier. >> and we'll be back with the closing unowcotdn. dow trying to hang on to positive territory right after this

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♪ ♪ wake up early, o. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo. just over two minutes to go. before we get to the broader markets, facebook intra day for you, it started lower third day in a row, it did rally intra day, came back a bit you have to say it is a reactionary not getting ahead of

the curve by mark zuckerberg let's look at the ten today intra day note they moved a lot initially not too much, and then during chair powell's first ever press conference, we did see yields rise quite significantly. and they then pulled back. so ultimately the ten year treasury note not moving too much just below 2.9 given yields haven't moved too much lower over the course of the session, the move in the dollar is quite a surprise down on0 ppt.8% or so. intra day let's have a look at the s&p how that has reacted because again, lots of moves in and around what the fed has been saying, but ending pretty much flat and the dow is town 7 points itself. sectors as i bring in bob pisani to discuss this, interesting there that we have banks up a little bit, but energy is the big performer today not because of the fed or facebook, but oil prices are up.

>> and fine appally responding. plight disconnect between oil and energy i hope the gap narrows we need leadership here. and i love your comment about the rorschach. >> i didn't know what it was >> you see what you want to see. some people -- every little comment from powell the fed being more or less aggressive and we have ended up not that far removed from where we started. i think we'll turn now to the china tariffs. the president supposedly doing something friday about this. the hope for the bulls is that he will be not imposing any tariffs, he will simply be proposing them there will be a comment period cooperations will be able to weigh in and dilute them the hope at least. and maybe we can end with a little positive news here. but overall, i think that powel did a good job of convincing everyone that he is slightly

more hawkish >> and he did it quicker than chair yellen used to do it there goes the bheell. essentially we're flat today ringing the bell quinnipiac. and welcome to the "closing bell." busy afternoon i'm kelly evans. let's start with how we're finishing up the day on wall street dow dropping 46 points leaves the dow at 24,682, s&p with a five point drop nasdaq a drop of more than a quarter of a percent and the small chip russell 2,000 bucking the trend here with a nearly nine point gain

1579 even as the dollar index is now down about 0.7 of a point. they raised interest rates again by a quarter point, sixth time in the last couple years first time under new fed chair jerome powell. all that and much more going on. joining me now to talk about it, michael santoli. and also susan ox. and nancy tankler. and also danielle former dallas fed adviser. welcome to everybody in the dow, best performer was chevron with oil and the whole energy complex up about 3% while apple did trail chevron up about 2% general mills was the big lag ard after disappoints earnings this morning, closing down by 9% also want to mention to everybody we will be potentially hearing from jamie dimon in an interview with mike allen of axios set to take place any moment now and of course we had facebook

news that we'll come to. so how does it all shake out for the market >> it is interesting i think that the market -- in the end it was a bit of a shrug when it came to fed chair jay powell's press briefing. and the the move but the volatility index is down on the day average stock was up you had more stocks up than down so this wasnot a negative response by the markets. but it was an okay i guess we are where we thought we are, somewhere between three and four rate hikes this year, somewhere between an economy that is accelerating and one having a soft patch and we don't really know how much labor slack there is. so in the end in weren't many answers and i think the refreshing part for a lot of people might be that powell didn't go up there and portray himself as having the answers or having some perfect framework where you could have the sense of false precision about where we're going. >> danielle, what stood out to you? >> really the same reaction. it was so fascinating to see a fed chairman sitting there taking notes he was dropping -- reaching down to get water and, you know, kind

of behaving like a real person i think the markets are struggling a bit to deal with the fact that he is struggling a little bit he's saying three years is a long time from now, how do i know that far out. so there is really nothing for the markets to parse one thing that has not been pointed out that i was intrigued by was the fact that he said he was thinking about a press conference after every fmoc meeting. he was ann adult for say i won't say that right now and signal the markets and upset them, but it is something that i'm considering. that would really give the fed and fmoc a heck of a lot more flex and goiibility going forwa. right now they have four meetings a year. and we went from 10 out of 16 members hoping for four rate hikes in 2018. to 13 out of 15.

so again, but i think the markets are clearly struggling with the message >> and what i found interesting is that he was so clear that we are staying in our lane, we don't do trade policy, we don't do election cycles he even -- i think this could be the beginning of the end of the dot clo dot clo do tt clots. he said stop quoting me. >> on the one hand he seems to be hintding at more communication, but on the other hand saying maybe these pre-jekss too much is being made of them. >> he is definitely saying too much is being made of them they will continue to do them, but i think he is clearly saying three times he said the only decision we took in this meeting was raising rates. these are individual -- 15 individuals with their own analyses came to their own conclusions about the dots and that is what that represents and he's saying i won't comments on those and stop trying to interpret those as some broader fed policy >> and arguably doing a press

conference after every meeting would grain sodrain some of the suspension so you are spreading the same amount of communication and it seems more routine >> absolutely. he is stargt the productivity revolution with himself here steve liesman is with us for more steve. >> yeah, let me just recap it for those who weren't paying as close attention as the esteemed panelists there. it was jay powell's first press conference they hiked rates by a quarter point. there is a new range now 1.5 to 1.75 the fed also upped the growth outlook, lowered its forecast for unemployment, these are the medium forecasts of all of the members. and it raised the outlook for interest rates that is the eye bao beyebrow ris year 2.9% next year and pretty strong 3.4 in respect

in 2020. but curiously, it didn't see morerespect in 2020. but curiously, it didn't see more inflation i asked how they could forecast not moch aruch more inflation >> it is now 4.1%. you've only seen very gradual upward pressures on inflation and wages despite that large increase and that suttles that tggests t relationship between changes in flack and inflation is not so tight. but it has diminished, but still there. so i think when you see those small changes in unemployment, that simply reflects the flatness of the phillips curve >> going along with that, he said he was surprised at a lack of strong wage growth and asked about market levels, you sees only moderate stability risks out there. finally he sees more growth from the fiscal stimulus, some debate about whether or not it is supply side or demand side growth

asked about trade, he wouldn't talk too much about it saying it was discussed at the meeting said the fed didn't make trade policy and committee members didn't see much influence from tariffs on the current economic outlook. businesses had reported negative comments about that. so here is a question as john lennon might have asked, about powell pass the audition he seemed to get out of the press conference without making too much news and a little change in yields some volatility in stocks and the dollar, but ultimately i think he came through this as well as he might have expected for a first press conference for a new chairman >> steve, thank you. and we'll see if we end up hearing more from him. on the facebook data scandal, let's get to julia boorstin with the latest >> mark zuckerberg breaking his silence saying in a post to his followers on on facebook we have a responsibility to protect our data and are working to make sure that this doesn't happen again. he runs through a time line of events back to 2007 on to the

revelation that in 2015 that data had been shared in violation with facebook's policies zuckerberg admitting a breech of trust between facebook and the people who share their data with us and expect us to protect it and he outlines the steps that he and his colleagues are taking to fix this problem. saying they will investigate all apps with access to large amounts of data that goes back to before their policy changed in 2014. saying that they will audit -- >> and talking about facebook right now. -- all of that data, location, shopping, sights, where you travel, places you visit, all of that is accumulated, sold, marketed all around the world and so facebook is a piece of it and huge buyers of other data. this is not just the day that th take that you have the cute

kitten up there. people have the right to where it is and how it is controlled it is true for all data providers. dry cease will happen and they are tough and of course, i don't mean to insult the media, but the second it happens, it is a letter to every a.g., every newspaper and they will all come and kick you when you're down. that is what happens and it will not stop but we have to say a legitimate part of the complaint. and you have to face it. and get the people together. say you know what, this is going to be really bad, it will really hurt, they will drag me through the mud. forget all that. we have a company to run, we have clients to take care of, we'll manage all that. but what -- we'll figure out what we did wrong, we'll fix it, we'll bomb guiapologize and deat head on so help me god

putting it under the rug is the worst thing you can do very often the answer is i don't know and when i know, i will tell you. we had robs problems in washinn and i said i didn't know yet when we know, we'll take proper action but i couldn't start making promises before i knew it or you get in trouble you find out in tough times who is in the foxhole, you know, who you can really trust you learn a lot more emabout people in tough times than in good times >> and one of the management cultures of axios is a culture of candor and one of your principles that is related to a crisis is you say face facts >> i do it generally you want everything to be laid out on the table statement people are afraid of saying it. like don't give the booster the b booster the bad news problems are usually much worse than they think.ter the booster the bad news problems are usually much worse

than they think. and you dig your own grave while sewer sitti you're sitting there wasting final we have 250,000 people, we deal with 100 countries, 100 million americans. million of small businesses. and you want too find out about the problem. in fact what you really want is you to tell us i tell people if someone has a complaint, that a gift to you. very often management team is oh, no no, it is a gift because that person is complaining is telling you what you are doing wrong or make them unhappy. and usually what messes it up for you, you're probably messing it up for 100,000 people so cold blooded facts and analysis when you are in management, again, facts, detail, analysis, you never stop when you are trying to find out what is really going on. and also emphasize the negatives. very often in management, literally they will show you slides after slide after slide of how well you are doing and

you're doing bad badly. sorry. seriously, it is amazing people stand up there and they are like this is way up and that is -- of course they are using the data set that makes it look good. and again, emphasize the negatives. seek out and a bunch of these folks said the same lesson. get on the road. get out there. go, see, hang out, go to the bar with your employees, talk to customers, go out. go on the sales call why are you doing that jamie i learn a lot of stuff going on in my company when i go on the road we goi on on a bus trip and go o branches, call centers we go to schools, op centers we invite the grandmas and employees to come. a but on that bus, we haveer tellers and loan officers. you get a beer and immunity. you can say whatever you want.

there is complaint night you can say whatever you want. but we would fix those -- literally make a list and we get on the phone and say is it true that we only have one person on that desk and -- yes add a person on the spot. decisions and some takes more analysis, but it makes you a better company and it's a hell of a lot of fun. >> so something you talk about -- >> save time to go for a hike, hang out at the beach, have the management team for dinner by the fireplace. just -- because you have to make life fun too >> and the counter point to that, understand that you could come into my company and you would very quickly know what was going on >> yeah. and i love these guys. i want to give them all the money they needed because they were great but a conflict for a boboth of s but, yeah, you can go -- i can walk into a headquarters

building, look at how i'm treated by the receptionist and staff and pretty much tell you about the company. so if you walk into jpmorgan chase, you will get a hello, how are you, can we help you that is what you wants if i take -- truth is the truth. if i want to know about you, any one of you by the way, i don't ever have to meet you. i just get that book on you. i talk to your friends, your boss, subsubordinates. i'll know hugh haow hard you wok whether you show up on time. whether you take blame are i'll know all of that before i meet you and we do that when we hire people so write that book about yourself don't let it get written be the person you want to be if i went into your shop and i hung out at the bar and was asking questions, i'll know how they are treated, how hard they work i know that you're having fun there. i'll know whether you free throw your investors like foreigners or -- you feel like you you owe them something with honesty and desense i city

sick in the information and then you can actually make wise decisions in life. >> as you talk to young people about career management and leadership, you talk about fortitude and a personal story about this when you walked into bank one, you found that there was something they didn't want >> probably didn't want me it's amazing how many people don't have fortitude i tell you, if you don't have that stick-to-itiveness, you won't make it in life. i don't know the story referring to bank one, but i walk into bank one, they have the executive team with all the perks and tons of stuff. one of the perks was clubs you get clubs. you belong to three clubs. and of course someone whispered some don't allow blacks, jews or women. i didn't gee hire mckenzie i walked back to the people and i canceled the clubs because if

they don't allow blacks, jews and women, we ain't paying and i went you can pay for yourself, but don't bother to put a business lunch through this company we won't support them. about six months later and i canceled all the clubs anyway. but it is hard all these managers, the company doing terribly, more really is terrible, and of course when morale is terrible, most do even stupider things when your clients hates you, your more really wi morale will be bad so i walked into the auditorium, i said i'm going to take away, i'm sorry, your cars, your clubs, your special retirement programs, the gym. i took away the stock purchase plan literally tons of things and i said i don't want to pay you where he is. when the company is doing

better, i'll give you more money. but we're not doing that anymore. of course some of them hated me informati for it do the right thing anyway. when you figure out what it is, do it and explain it explain it and explain it. but don't not do it. and so that is just a goal figure out what is right and do it get support, get bhouy-in, but don't pack off of it i still will be talking about the turnaround of bank one if i had done in a. well, you know, it takes a long time to change a kulg chculture. not really >> penultimate question. you say shakespeare teaches management >> yes someone once says shakespeare wrote everything that could be written. yeah, almost everything. because all of those characters, all that behavior, all that organization and disorganization

or how people treat each other, it is all in shakespeare those same people, they just change the names and put it in a different play but they are in shakespeare. >> and last question for you you talk about principles for young leaders. you talk about take care of yourself and you mean it in a very literal way >> yeah. the basic stuff is work hard, you will have to spend your life learning so i read four, five newspapers every morning. i've been doing it for 30 years. i read everything that comes out, everything that gets sent to me. you got to learn but the other way you learn, talk to other people i'll learn a lot more if i sit down with steve than if i try to he had radio all the local papers so learn, have great relations with people. but take care of yourself is take care of your mind, your body, your spirit, your soul, your friends, your family. the companies cannot do that for you. we can give you the environment, we can have gymle a and materniy

and pilates, but you got to do it yourself. take care of your mind, body, spirit, soul, your friends, your family, put time aside for that. it is the most valuable thing in life and fundamentally your career will suffer if you don't because -- and you can have tough times. when you have tough times, it is okay to blame the world and get depressed for a while. after that while, you have to get up, brush yourself off say what did you learn from it because half the time you were partially responsible. you know, and don't surrounds yourself with friends who are always saying look what they did to you no, actually maybe you were the jerk and you need very honest people around you but learnfrom it and move on and i learned a lesson from fr ve vernon jor began jordan a friend mine p i got fired once and he said you can't live your life in revenge

because if you do, that controls you. you are no longer controlling your own life. you have to move on. >> that would be a great book title, you're the jerk jamie dimon, thank you very much grateful for your advice >> that is mike allen interviewing jamie dimon he was asked at the beginning what he thought of the facebook scandal and he had his own experience to share. of course jp more b pchlt mopmod in front of washington and dimon tried to minimize their london whale crisis and had to enown up to it pup back to julia. >> and i think it was really interesting that jamie dimon said people have the right for know where that data is. and how does it control. he said it is true for all data priors now, of course this is what it all comes down to. how much data is being collected

about all of us and who owns that data and who controls that data so i think jamie dimon's point about that and the importance of transparency and disclosures to consumers, that is what mark zuckerberg and sheryl sandberg were talking about in their blog posts to facebook's users today talking about how they will be paying more attention, they will be keeping a tighter rein on the d data and how much is shared and communicating more to consumers. now, he says investigating all the apps with access for large amounts of data, going back for pre-2014 when their rules were different and they allowed app developers to collect more they will restrict data access and making sure users understand what data is being collected about them and really encouraging them by prioritizing putting it at the top of your news feed all those privacy

settings, sort of unplug when it comes to all the apps that are getting access to their data so it really seems like what jamie dimon was talking about reinforces the steps that zuckerberg was taking. but he did say it is important to address the issues right away it's been a couple days since the news broke so we will consider if this is considered fast enough >> that among many points. julia, thank you let's quickly get some thoughts from the panel >> first of all, if you read through zuckerberg's statement, i said i take responsibility, but he didn't apologize. sheryl said i deeply regret what happened i think smartly. but i'll tell you, this is why the distributive ledger technology taking off, block chain as it is known, it is because it has the potential to create a world where you own

your data. where you get to control who sees it, when and how much much your data they see >> and so if there will be a facebook disrupter that comes in, you think it will be a block chain based social media >> it is absolutely taking off and it is precisely because of these reasons. because big check and centralized control isn't working. >> you know, i think that first of all there wasn't a lot of fresh new information from the statement relative to what the company had said already so i do think he calls it a breach trust so a lot of the correct notes have been struck i just wonder if the goal ultimately is to forestall scrutiny and regulation. not going to be enough because they may be narrowly defining this as a data issue and everyone has policies and ploetd co bloat co

bloat coal blo protocols. but everyone sees it as overlapping. >> and a con few insifluence ofy different things plenty of people, if you can't boil it down for people, plenty out there going i don't feel like this company isn't trust wority ae ittthy administenymore >> this is the user who maybe appreciates the blog post. then the regulator who can grand stand. and then there is the investors like me who said the stock is up 3 1/2 bucks midday, i'm sougout. i'll steart selling again. i hope i have more opportunity we've been talking about this for a long time. we've been selling google as well i don't think these insular

silicon valleyites understand what they are up against and it is not just in the ugs it is particularly abroad. so i'm most concerned. reed gallon way's book, you will stem back and say standard oil had nothing on facebook and google >> especially because we've heard the analyst community on our network today sticking by the stock and saying that they thought that the base modusines concerns were overblown. california state treasurer is joining us mr. chang, having previously served and put a lot of financial pressure on companies over this wrongdoing, what do you make of this issue with facebook >> i think people are appropriately outraged we had 50 million american users whose privacy data rights were violated and compromised it is crystal clear that as you

referenced engaging with facebook in regards to board of directors, we need to know what they knew, when they knew it, have full disclosure and frankly, we have to make sure that if facebook will make representations, there is independent oversight that will track that to make sure that they are in fact following through on that so that they can restore the user's rights and restore public trust >> are you satisfied with the explanation that mark zuckerberg has given and some of the steps they have outlined to try to improve the service he also doesn't apologize outright i don't know if you think that is necessary >> he needs to apologize as others have pointed out, you have to accept ownership when there is a material failure. that is the first step in saying that you are serious about taking on the issue head-on. you have to understand where people are they are vulnerable, sensitive they are at great risk

and to not apologize i think creates a separation from understanding where people are so it is clear that they need to do a lot more. they haven't taken the steps there is no transparency, there is no accountability it is not clear what people will garner >> it occurs that cal al start treasury benefits a lot from silicon valley and the success had. so i don't know if that means you would be more reluctant to put pressure on these companies. does silicon valley itself have a problem? >> silicon valley is aninnovator they have contributed mightily but they have humanitarian responsibilities as fellow residents and citizens to do the right thing. they have to create a strong

moral backbone and guide post so that all can for him so they are not an exception to the rule they can be the leader own it, fix it and get us back to where we should be. >> ultimately what facebook is being accused of is essentially violating some of its own on policies or at least not having such tight policies to begin with it is not as if there is an objective standard industry wide that says this is hugh you hais to treat the user data so is that something that you see governments getting together to set or will we essentially say let's go to each company and have them fix it on their own? >> i think they failed their own standards when they said well will protect your privacy. your privacy is your own and as i pointed out earlier, they trusted cambridge

analytica. cambridge analytica obviously used that information and others for neff tear yaarious purposes. so we will have to set standard there is place and you need independent oversight. up can't leave them to their own devices. >> is it nefarious the obama campaign was famously used social media targeting to great effect >> when you have inch 34ri indicatio indicatiinch 34ri indications that you had foreign goecvernmented involvedn the process, it is proven it is nefarious. >> i think that is a separate issue from this one, though, right? >> but when you get access to information, it is problematic >> i will mention again, what role you think regulation should play here before we let you go is it something that you want to see california do something about, the u.s. more broadly, or can the user revolt accomplish the same objectives here >> i think yyou need widespread

application and. i think we need national intervention in regards to this privacy and competitiveness are tied together. and so we have to have a healthy national discussion about that we know that the digital component of our economy and of not just the united states economy, but the global economy, will grow every day. it is important that we have an enter flainternational discuss issue also >> all right, thank you for joining us appreciate your time thank you for bearing with us it has been a very busy hour if you are just joining us, mark zuckerberg has finally spoken out about the issue. of course he put a post on facebook nearly 1,000 words detailing what happened with cambridge analytica. and also recommending several ways that the company mirt gogho about fixing this.

and sheryl sandberg adding information as well. facebook shares closed today up a bit. didn't move too much even though the statements came out right before the close of markets. for more, let's bring in yale school of management jeffrey sonnenfeld has the company done enough? >> no, and thanks for bringing me into the discussion it is a great set of six 1k3er7expert on, or if i count jamie dimon, seven, pretty close agreement with each other. but this is not one of those situations where everything has been said. it just hasn't been said by everybody. i agree with the panel and yet there still is more to say on this yes, he does quasi apologize he says mistakes were made well, that is the old classic dodge. what washingt done wrong and wh

it you take a look at mattel when they had a serious problem with lead paint you take a look at jetblue people tell you what did we do wrong and what are the repairs there are things that went wrong here specifically a two year gap. how do you explain that? how come there was no confirmation with cambridge analytica? oef, ye oh, yeah, we are doing it and there is legal certificatiocert. what does that mean? there are no objective standards? well, mike, you know, you're almost right but not completely. there are lots of third parties out there. there are lots of people who oso that have great standards to live by. one is that you need -- >> but talking about not a specific legal standard that they all have to follow, but what if the answer is to what happened or what we did wrong,

well, we didn't properly applpoe those who had access to our data how far does that get us >> even these 1,000 words as you said that we've already heard repeating this, there should be a third party validation, not just the fact that they didn't do an audit, why not have somebody else do it. the format of this was so disappointing. just putting out this bland 1,000 words, where is the objective press conference where people can challenge and ask questions? or at least a fwrnd lfriendly mg with your own employees. who metz with t with the emploes where is the ceo it is terrible terrible they should meet with their own people, answer questions and you know right downs line. the things that they didn't do,

standard best practice >> jeff, it is kind of fascinating because as much as people share your outrage, there are others who say i hear people wagging their fingers at these executives and it is way overblown and it is not effecting the usage on the ground and it is much ado about nothing. what do you say to that? do you think we're going to move past this in a week's time when the next scandal in washington heads to the front burner or is this a real turning point for this company >> it has to be a turning point, but they are not quite there those people who say that, they should go out and get themselves some nice takata air bags. plenty examples of companies that don't do the right thing and jamie is an example who did do the right thing he was accountable everywhere. he was the toughest krcritic of himself. when he went before congress, he didn't send his lawyer, he went

before the senate and house. a little bit of grand standing, not like what was done in the wells fargo wrongly at this point. but jamie was answering the questions and didn't make fun of them he said here is how you should question us harder and did it very well. making themselves accountable. that is what is missing here and you take a look at them not sort of mentioning, you know, that the onus -- they put it on their clients. they blame cambridge analytica and the onus on on the users on the tool bar to somehow figure out how to opt out not them >> a good point. thank you. by the way, jeff, are you on facebook yourself? >> i'm not a facebook, but i do own some of it miami family is my family is on it

i always know when to buy but never to sell. >> all right, jeff, thanks again for joining us still to come, jim grant says jerompollase we h one commanding credential, we'll fikd o find out what it is and if he still has it ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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cancellation evof thousands of fights. >> and today united ceo addressed the status of the policy when it comes to transporting pets. they wiare reviewing. here's what he had to say. >> i think that is where we're going. that is why we paused it we will use third party. we were about to name somebody who is very expert in that space and we'll assess all the different options. we are getting a lot of feedback a lot of animals we move for animals families, commercial breer breeders >> a lot of people are saying why even transports animal tsz given that there could be problems even if you do take the steps necessary. is there any thought of hey let's just not do this anymore >> we'll always review all the

different options, but thing there are zink thinthings that first. some animals are more high risk, but doing away with it is not what we're about we fly almost three times as plane as other people because oem airli our 5ir8s haairlines have schol do about. >> you have these high profile crisis moments where the company gets a black eye and people say here we go again >> and i think that is why we work so hard to make sure those things don't happen. i feel blessed to be part of this we're making all the right -- taking all the right steps we're training people in the right way. and at the end of the day, events like this occur when you are the size that we are and so we want to minimize and

stop those things. but more importantly, learn from them and adapt and respond pretty quickly >> that was united ceo oscar munoz. the company is suspending taking new reservations for transporting pets in the cargo hold at least until may 1. until they decide whether or not they need to make some changes to that program and they hope to have an independent review done by an outside firm sometime over the next several weeks and then they will make a decision about what happens in terms of transporting pets kelly, back to you >> spending a lot of time talking about corporate crisis management today phil, great stuff. thank you. now, the best performing sector today was actually energy it was up nearly 3%. boosted by rising oil prices joining us now for more, pete in a and david. what do you make of it >> i think the interesting part is the fact that you are not seeing the reaction wiee'd liket

be seeing. the disconnect between where the prices are for the equity names, they are still well off of their highs while we make oil make six week highs and it makes you wonder what is going on and when will they catch up it has been a widow maker. >> are you a buyer of energy >> i own exxonmobil. i own oih. so i'm involved. did i buy it today no am i going buy are more of it? not right now. >> david, what about you >> not at all. i wouldn't buy the equity at all. in general what is happening the street doesn't trust or investors don't trust these companies flights about a strie expectations are way too height. i credit to wall street being super lazy from the perspective of growth

but there is no confidence in numbers. the rally today you saw was in a lot of low grade names purely short covering across the word so that shows you how people are positioned only thing you can look at in energy is any of the bigger companies in a are throwing off cash that have nice yield. maybe you can put money there and be okay. but that is really it. >> sound one buyer david seaburg, pete najarian, thank you both more coming up on "fast money. the official raisfederal red interest rates today and joining us now is jim graham editor and founder. what was the important criteria that you were watching today and did he deliver >> well, my view is that the world puts too much belief, faith, in the powers of the fed

to control the events. and that it has a 4 trillion police balance sheet, it is an important institution. but look for example at the seemingly autonomous rice se in what we know as libor. >> this is interesting >> we talk about the fed funds rate which is administered, biout there is a rate called libor to which is attached about 3 $300 trillion worth of loans and student loans and derivative contracts. so libor has been going up a lot. if it were a stock, you'd want to own it. there is no jay powell at libor. it go it is a rate that is polled.

there is the new and improved since 20134. it it is cleaner. but they ask banks how could they fund themselves on an insecured basis. answers have been going up and up and up. so it is -- so that is to me a much more important rate that gets very little attention doug kass has given it attention, but it gets very little attention and it deserves more because it is truly a rate on which many events turn. >> many of those who have noticed it are explaining it away by technical factors. issuance ever treasury bills, whatever the reason for the scarcity of dollar funding i guess it didn't matter to the securities pinned to this rate, right? they go up in korin cost. but does it say anything about stress in the system >> i think it illustrates to the extent that the world rates are

stre trend a trending higher. a one year bill in china that has gone up from 160 to -- may the witness consult his notes? anyway, it's gone up a lot in china. european central bank has cleared its throat as if to suggest that it may step away from its massive qe program. the bank ever england is poised to apparently raise its administrative rate. it is not as if our dollar libo is only the rate going up. famously in some circles have tended to trend in generation length intervals over time >> you are an investor aimed publication. you can hold your mic there like a handheld what do you think the implications are for investors a lot of people say i 14507shou own stocks

is that true >> it is not necessarily true that -- what we are observing is that there is suddenly opportunity in the very humbles of money market instruments. you can for example look at short data commercial -- or corporate loans that are trading below par because the price has fallen has rates have risen this year and they deliver an after tax yield that is enhanced because part of that return is in the capital gain from 97 to 100. i'm not talking about -- >> these are -- you are picking up pennies in front of a bulldozer or something >> but money market mutual funds are now looking at if they were not dying on the vine. savings banks are starting to offer stuff. so there are opportunities for

savers that there were not before >> and your message is that rates will continue to go up >> i think so. if there is anany dogma democrt think we're overlooking it but i think we are in a generation aprise. doesn't have to be a squik o e . 1946, ten years later, long bond yielded exactly 100 basis points more so the tempo of the generation length fair market in bonds is undecided. >> and just to close it out, we were talking energy and some partnerships with the yield that is they offer and the valuations that they have, could that be -- >> yes, indeed yeah i happen to like gold bouillon i think gold will be the

reciprocal ben fifsh and he wefs that are about to be expressed in the markets and the naturcentral banks for years somewhere suppressed interest rates and the manipulation of prices is almost always bad >> people say bitcoin is the eww gold >> i'll take the 5,000 year object myself. >> in gra 3 >> mr. grant, thank you as always pup. >> up next, a catastrophic failure of process that is when closing bell oig comes right back let's begin. yes or no?

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i'm seemo mody with a news alert. meredith corporation says about 200 employees have been notified about their positions having been eliminated. 1,000 more positions will be eliminated over the next ten months ceo tom hardy says we have made significant progress executing on these initiatives since we closed the acquisition six weeks ago. keep in mind they fully acquired time back in january separately, meredith says it has decided to explore the sale of time "sports illustrated" and fortune brands. >> already some speculation about fortune. meantime more high-profile voices weighing in on the facebook scandal this. >> yeah. will fred is here. >> jp morgan chairman jamie diamond weighs in on the use of data in particular across a broad range of industries.

>> all of that data, location, shopping, sites, where you travel, places you visit, all of that has been accumulated, sold, marketed all around the world. okay, so facebook is a piece of it there are also huge buyers of other data this is not just the data, you have a cute kitten up there. i think people have the right to know what it is and what it is and how it's controlled and why it's controlled. i think it's true for all of these data providers. >> on top of that, earlier today i spoke with uk mp damian collins. he's the chair of the digital culture media and sport committee, the relevant one for this topic here's what he had to say about mark zuckerberg's handling of the controversy. >> i think there is an absence of leadership in the company that i think concerns everyone, the users, the shareholders, the people that work there and us here in pear parliament

and colleagues in the u.s. congress, too. he needs to speak out about what is happening this is something that is fundamental to the business. it's about the security of people's data, and their knowledge about what happens to it >> guys, of course he has requested to see mark zuckerberg in parliament for a hearing. that interview took place before we got the statement from mark zuckerberg it's clear this is already moving whether mark zuckerberg issues a sufficient statement or not. and the rest of that interview he does talk about inflation in europe things are moving in that direction regardless of how zuckerberg and the management handle it from here. >> jamie dimon also spoke about how he went himself to congress. we have heard people kind of emphasize the importance that that might have played listen, at this point, mark zuckerberg has invitations feels like all over the world to show up and explain himself it sounds like he could start

perhaps by showing up to u.s. congress. >> inhe has to address the issue, which he has done now and we will assess overnight whether that response was enough in terms of going in front of congress, all those banks did it and they are now out of the midst. that's what i mean, it's easy to say that one of the few ceos that lasted the financial crisis he didn't and look what happened to him >> sure. >> there is lots of ways of assessing this clearly, mark zuckerberg and the rest of the management have to address it at some point whether they have done enough, they will have to go in front of lawmakers and we'll see. >> with many federal agencies having legal oversight over your operation asks the fdic on the hook for a deposit risk, obviously that's a different standard. >> so far that type of regulation has not extended itself to social media so far. >> that's exactly the question,

though clearly as you say they are not regulated in the same way so they can't be bound by a lawmaker to be demandedn to be in front of congress but that's the question, the amount of data they have access to, are they going to be regulated going forward. >> you could argue that the banks were in a weak position. zuckerberg has tight control over this company. the worst that can happen if the public is dissatisfied with him it becomes part of narrative but it's frankly up to him what happens with this company. >> going back to the uk lawmaker, collins, he mentioned the information commission this is a relatively new role, a new regulator in the uk. he said we are going to increase the powers of the information commissioner so they can go behind the companies' fire walls to assess the types of algorithms they are using and the type of data they have >> i'm sure the companies will love that. sure, have a look at our algorithms >> a bank ceo i guess if you ask

have access to all of this data that we have it doesn't apply here but we will see if it soon does. >> google's search information was used to help track down a bomber the information, the power in it, both for good and ill. facebook's shares were lower after hours at last check. that does it for "closing bell." "fast money" begins right now. >> "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders on the panel today -- pete najarian, steve grasso, tim seymour and dan nathan >> mitch steevs bought a media giant today. the winner of the facebook fallout? it might be blockchain a top analyst will explain why the data scandal could be the catalyst for the blockchain technology first we start with th