and the president have the same goals? >> i don't discuss elected officials publicly or privately really i would say that at the fed we are deeply committed to carrying out our mission, and also that our independence from direct political control we see as an important -- that has served it is country well. chairman powell, are you concerned that new different acurrencies like libra, that was unveiled this week, would erode your power to influence -- and did anybody at facebook talked to anyone at the fed before libra was unveil >> so on your on specific questions of digital currencies

replaying bank currencies, i think we're a long way from t t that. >> so essential not too concerned about central barracks no long -- or digital currencies you know, facebook has made i believe quite broad rounds around the world with regulators, supervisors, and lots of people to discuss their plans. that certainty includes us, and it's something we're looking at. we immediate with a brought range of and there is just a tremendous amount of innovation going out out there. there is pour tenchally benefits, also potentially

ricks. so i would echo what governor carney said, which is that we will wind up having quite high expectations from saved and soundness and regulatory standpoint if they do decide to go forward with something. >> you know, we don't have plenary authority over cryptocurrency sits as such. they play through our world through consumer protection and money laundering, things like that but through international forums, you know, we have significant input into the payment system, and as you know, play an important role here in the united states. >> thank you, chairman i want to take you back to chicago and the review much your

monetary po -- and something i think that is developing is outside experts are sited and like the jurisdiction of the february shifting your target up to 4% they think that would help monetary policy and 2% is not sacred or whatever it seems like you have taken that off the table have you taken it off the table? if so, why and what are yew thoughts on that thank you. >> we have said wouldn't look at raising the target rate for inflation. we did say that. it's become a global tomorrow 2% our stat tore mandate is price stability, so we're looking at

less radical ideas, this givers me a chance to say about the reradio you it's a new thing for you. it will be a year long, or even longer ross looking at the strategy tools and communications it's a way to let the sunshine in and have dialogue and criticism we've had a series of fed-listens at every reserve bank, and we had an academic conference earlier this month with seven papers written. i would say the hard of the conference was the two panels who live in low and moderate-income communities, and i think people were quite struck

by that are intervention, which was uniformly how important maximum employment is and what it means in their communities. the idea is that they haven't had a bull market in those communities. what they have is low unemploymenu employment, lots of social problems and now you have companies wanting to hire and providing opportunities to an extent not seen in quite a long time for someone who does this work, i think everything thousand it was quite worst doing. that's not what -- and we're

glad of the choice we made you know, they kind of shrugged their shoulders. is 4% inflation radical? and to who you see disinflationary a factors around the world we've done better than other large central banks who are not open economies, like the uk where you have big currency moves that move inflation around inflation has been lingering and not getting back up to target in a sustained, me risymmetric kin

way. >> reporter: i have a question about bank regulators leverage lending guidian from 2013. as you know, the gao had a letter say they thought it was a rule, and it sort of went away, but yet leverage lending is a source of concern. you yourself have said that credit underwriter quality seems to be deteriorating somewhat lately, in that the fed has tools to supervise banks and to prevent leverage lending from becoming too much of an issue is the 2013 guidance still representative of the sort of fed's thinking about leverage lending? and does the fed have any intention to either issue like a

leverage lending rule or new guidance that is let problematic? or is the plan to carry on with supervision, as you are? >> the 2013 guidance is not binding. but that's really the beginning of the story you know, we have the theory we need to ask the banks for safety and soundness exposure so start with the rinks the banks are taking to themselves, through the rinks they are running, the pipeline, the allegations they have undertaken so we monitor that very care nfl. so do the he banks, and you see exposures much smaller than before the crisis. by the way, we test that regularly in the stress tests. so we kind of have a sense of

what that is, whereas before the crisis there was a lot of lack of knowledge about what the losses would be. that's where it starts for us, the risks that the banks are running on their own books, and to themselves, and to each other. that i feel like that's in a good place, but we never say mission accomplished on that we will keep, you know, keep monitoring that carefully. what has happened, though is the paper is now owned by market-based vehicles, collateralized loan obligations, mutual funds, things like that so we now have a good sense of domestically where that paper is i think internationally not at much, and the financial stability board is actually looking more carefully at that we monitor those vehicles to see where they are, and they're actually stably funded, but

there's still macro economic risks, and we take that very seriously. we call it as a macroeconomic ris risks. >> is there any intention, any plan on the part of the fed or other regulate are to create any additional clarity or inconsistency -- i guess the other part of guidance is to make sure that everyone knows what the supervisory expectations are, for anything for that matter? is anything else coming? or will it remain bilateral conversations with banks >> i think the issue isn't that the banks don't understand the rules. the issue is that the risks

isn't in the banks it's out in the market-based vehicles i no longer am day to day involved in this as i was before i took this job, but my sense is that's really not the problem. i'm not saying it's perfect, but i think we understand what risks the banks are running, and the question is how concerned should webe about large holdings by market-based vehicles, and what risks do they prevent? we continue to take the risks seriously. >> reporter: brian cheung, yahoo finance. the statement noted that the markets remain strong, but the may jobs report missed on estimates, but employment rate still stayed at 3.6% how do you reconcile that with

the 3.1% of wage growth, and how does that company are we closer or farther away from maximum employment >> you know, we have to be closer, because more jobs are created than people entering the labor force. the unemployment rate is lower by just lots and lots of numbers, you know, the labor market is in a good place. you mentioned wages. the level of wages is very consistent with what it should be, in the sense that its approximately equal to inflation plus product activity increases on an hourly basis, so what's i guess surprising, though is you could reach these levels of unemployment long into a cycle, let's say they're not growing at

a rate that would provide much upward thrust. we watch this carefully, and we're very careful about not assuming that there's no more slackses in label mare and you viewpoint seen wages fick up, you haven't seen real signals. you have seen a tight any mark,i tight, but not overtightened >> chief, -- jean las the last question. >> did it discuss the change to a balance sheet policy, perhaps ending runoffs earlier than planned? would the economiee be inclined

to do something like that? >> of course we haven't made any decisions yet. balance sheet runoff is very close to the end of its planned life i would say if we do provide more accommodation, but if we provide more accommodation, we'll certainly keep in mind what we said earlier. fed chair jay powell wrapping up the news conference. the headline -- the fed leaves the rate unchanged, but does thousand out hints that there they may be heading to a change. a dovish tone to the statement. let's check in on what it's done to equity markets with 20 minutes left pretty much flat before the

statement at 2:00 p.m., a by of gyration, but settling up 0.4% follows that statement now two-point cyr --, and, not a huge move. , i think it's. >> more accommodation to this economy. he also satisfied the markets. if you look at stocks, there was a high bar we had a strong run-up going into day he could have dispoimd the

markets -- look at the, weaker, so lower dollar, lower treasury yields higher stocks -- trying to pric in -- joining us -- josh brown, ceo t. welcome -- and i think he's very good at his job. he speaks english, which is a bit of a departure from prior fed chairs cho have had that gig, and i think his's more -- when they ask him -- epps, the big takeaway from me is you should by embarrassed if you're being to make an investment because of a quarter-point rate cut or not rate cut. like no one seriously is

changing an asset allocation based a if you got it in june or july, or they make you wait. you saw a bit of a sell-off, and brought it back to green now they roll a bit. it's a roll of noise, but not a lot of fraction on the board. >> the setup could have been tough. we're up 6.4% now, and of course higher today let's bring in our fed jeff herming, chief investment at double line capital michelle, and rick santelli joins us from the cme. steve liesman will join us shortly, as well as stephen moore. what's your takes in terms of the reaction >> i think the bond market has been pricing this action in all along, right as josh just mentioned, whether it's a 25-base cut, now we have

effectively priced it in. >> 100% nearly, right? >> yeah. roughly. >> it's delivering expectations. whether you go and dissect the dot plots, saying that there were be a cut, most of them saying there should be at least one 50-basis point rate cut, it's delivering on market expectations that's why you're not seeing a lot of activities in terms of equities credit spreads are holding in there. that break-even spread actually went up today, so it seems to be bond market pricing a lower growth rate. >> michelle, i thought the most definitive point was when he answered a question on president trump. he said, i think the law is clear and i have a four-year

term, and i fully intend to serve it does that clear anything up? >> you know, he's been making that comment, and every press conference he's asked that in a "60 minutes" interview, he also responded to that, so i think he fully intends to serve out his term his goal and intention is to do what's right for the economy, regardless of the political noise, and i think the fed has decided on the number one goal, they are unwilling to risk having the economic fall into a recession. hemay that clear, also noting the commentary from the fed, that a lot of the economic actors, a lot of communities are first starting to see the benefit. they don't want to thattic it away too soon. they're willing to act in order to get that. >> david, what's your that i

can? did mr. powell sort of nail the aspect of not delivering a cut, but guiding towards one? >> i think he did. actually i think it was a very different meeting for chair powell i think the market also has some scars from communications in the past, so we're always hesitant to give him the benefit of the doubt, but i think he nailed this one, and gave us what i like to think of insurance guidance instead of insurance cuts they have their finger on the trigger, they're ready to go, all they need is the excuse. it could be data, it could be markets. it could be just they get frustrated with this miss in inflation, which jay highlighted numerous times and he's been a proponent of this, but i think folks are getting tired of that inflation mix. that's what driving them to

actual actually cut later. >> and on that point, two notable absent words, patient and transitory let's bring in steve liesman, who was in that room, and what did you make of all of it? >> you know, i think it's probably a better better that the fed cuts rates in july, but i will say it's not a done deal. i asked them about the issue of trade and if there is a deal, and he says it's essential to the change in the outlook. that's an important phrasing from the fed chairman there. you know, if trade changes the outlook overnight, it could change it back overnight the other way. i will just point out there's a month's worth of date. you get a strong employment report, and gdp, and some bottoming of some of the manufacturing weakness, i know that's not the forecast, but i'm saying there's a month to go

you could lay some odds, at least i would lay some odds that it doesn't happen. >> steve, stay with us as well, jeff, i wanted to touch on of points off the back of what steve said. the chair also said that global growth is important. does whats has been on the -- >> first of all you look at the auto sector, specifically germany, it's been horrendous. germany is technically in a recessional this point, so at least an impact, but on the back of steve's comments, too, it is

interesting that the next fed meeting takes place on the day the second quarter gdp gets released i think you do put them on pause again if there's an up side. >> how much is riding on the g-20 meeting next week. >> everybody is focus -- -- >> i mean for fed policy, though it sounds like it's pretty key. >> because it's centered on the trade war, right there a resolution the kicks the can, which we've been doing for many months in terms of these policies is not helpful to the fed's job at this point. it doesn't bring any resolution to it chairman powell did give kudos here. >> i wonder what the president

will say. let's get a summary here. >> we maintained or policy interest rate, but made some significance changes to our statement. since the beginning of year we have judged that or stance was broadly appropriate and we should by patient. in light of for the economic on outlook and will act at appropriate including trait developments and concerns about global growth. committee participants expressed concerns about the pace of inflation's return to 2% many fomc participants seeing a change for a somewhat accommodative policy has strengthenedened i would say there's not much support for cutting rates. >> if, for example, there's a deal with china, does that take the possibility of rate cuts off the table? >> it's really trade

developments and concerns about global growth that are on our minds. we're not exclusively focused on one event. i think it's clear that i have a four-year term, and i fully intend to serve it. >> a enbetter with music rick, we haven't heard from you yet. i can tell you that i'm amazed as some of the developments. wee now down a dozen basis points 30s are down one that means we have steepened nine basis points, and the lock jam i always talk about with fed funds did occur. the june cut didn't happen buzz that month then added more in than the nearbyes took out. what that means in english is it's like a christmas carol. it goes to the future, they're at the grave, is this my future?

the ghost says, if he don't change things, it is this market is looking at the current trends that jay powell kept reasserting in many answers to question that is they're not there yet, but the conditions are moving in a direction they may warrant an ease. the market is bets those conditions are a trend ar they are baking an emore aggressive rate scenario by the end of the year than they had to date you can even see it exaggerated in the short end and the yield curve. if you have a 300,000 jobs report and gdp number that's half a percent better, the markets will have to do big u-turns, but if the weakness continues, it's pretty much already baked in. >> there was a line where

chairman powell says risk sentiment has deteriorated. >> he would have been right about that if he made that statement around christmastime it's very hard to make that statement now, but if you look at the bond market, i get you could. >> may was pretty brutal. >> but the month of june you -- apple is up 17% this month like, let's relax with the deteriorating risk sentiment food, clothing shelter and iphones, look sectors that have made new highs, just focus on charts bear with me for one second. you sew consumer discretionary, technology, consumer staples, and real estate, utilities, these are the stocks that are working right now, as rates have come down. look at what's peaked already. energy peaked in 2014. financials peaked in jan wore

2018 take a look i think there's way too many winners so, michelle, the take away is he's -- going to act as appropriate. which data points will be most important? >> i think the next two weeks are so important they do need to see what happening, and i think there's a few things two, what happens with the ism surveys. and then importantly what happens with the report. we'll have all of that information by the first week of

july frankly i think it did a good job in doing so. statistics it department on how they play out. the timing is conditional, though >> what do we heard about the strength of the u.s. economy >> i'll answer that. definitely they see a weakening, you can see down to 2.1% the question becomes is it a garden variety weakening or something more serious? >> but they have a baseline scenario that things work out okay what you don't know -- but i guess what you have to seen is that baseline scenario includes

rate cuts, only things only work out okay if we cut rates it's a critical one and one i will be up listening for in the commentary, some of the speeching that come out. do we only end up at that 2% number, or can we get there without it? jim was always going to be that guy, even in the original part, he was very much against it, so i don't think there's a

big deal. >> what he told us today if there is a pullback, this reserve is likely to bring out the guns >> what if you get a china deal and you're traiting above, does the fed cut into that scenario >> i think it's very different we're at a 50-year low they gave you insurance guidance today, not insurance cuts. they're not ready to do insurance cuts, and i think as we go into july, it will be tricky if we have strong data, the market may go up and touch toss report highs, and --

>> i tell you what i think i'm -- i wonder, can president trump have his china dive and trade deal and rate cut, too i think those may be mutually exclusive. >> china doesn't want to see a deal without a rate cut, either, they would love easing monetary policies >> the global dowel is already significant on the a trade deal, along with what he had to say

yesterday. you have many of the pontens there all moving in concert for the first time >> the bond marked is expecting a trade deal >> i would say it's not expecting a g-20 deal, otherwise you wouldn't get the rallies everyone stick with us after a shore break, wee also be joined by stephen moore. he's put out a statement. and a big interview, congressman patrick mchenry, who is calling for a hearing on facebook's new cryptopush. he wants to hear about the libra

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we've been steady since the press conference, so a bit of gains off the back of it unitedhealth, disney toward the top of the list, dew pointen, boeing, nighti at the bottom let ate get back to our mega-panel, and we're joined by stephen moore. you just put out a statement it sounds like you do not agree with the decision. why? >> no, i sure don't. i would be disappointed. this should at least cut a -- and reduce reserves. if you look at the data, we have

deflation in commodity prices. the fed has continued to overestimate inflation inflation has come down and it's been four months in a row below the projection let me put it simply, there's no whiff of inflation anywhere in the economy. the fed should get ahead of the curve of that. >> i view this as an anti--growth effort. >> to what extent do you think the president's tweets of goodness on the trade front earlier this week therefore played into the lack of a rate cut? do you think the president will regret releasing that news so early? >> that's a complicated

question, because there's so many moving parts. look, i think there are some signs of progress on china trade. that's good for everybody, it's good for america, it's good for employment my point is, and i keep hammering this point when the economy grows faster, that does not cause inflation. the fed is in this phillips curve mentality, it has -- that somehow when the economy grows, we need to pull back some of that growth. i'm concerned about prices, and i look at what's happened to the oil price, and the soybean price, and these commodities, they've been falling that's consistent with a deflation environment and the fed did not act. if they're going to act -- they did hint they may lower rates in one of their next meeks, sow why wait >> you've been about six, make seven people that want to disagree with you.

josh, get. >> i don't know that i disagree. i would love to hear your take on this. so you think the fed is holding back and should have moved today. during 2016, the current president, then candidate, was screaming about the fid keeping rates too low, using them for politi politic politics. >> and, quite frankly, i know about all the claims about how great the economy is, but gdp at 2% i think it was about the same then, too. what's the justification now, if it would have been political and manipulation during the campaign >> i think that's a fair point i think then-candidate trump was wrong two years ago. they were not keeping rates too low, and they are keeping rates -- i mean, they were

keeping rates too low back then, and they're keeping them too low right now. you're right they're projecting 2.1% growth that's nothing we think we can have 3% to 4% growth with now inflation whatsoever, and the fed doesn't believe that's possible. we should have done a quarter-percent reduction. somebody show me anywhere, anywhere, show me inflation in the economy. what is the fed so afraid of >> jeff sherman? >> i would say show me the 3% real growth rate. >> we had it. >> well, that's the difference if you look at the last seven, eight quarters is much different. >> what is the gdp growth rate >> it's a crisis. >> one at a time jeff sherman, your question. >> it's been about 2.2 to 2.3%

per annum. that's why we're back to the trendline growth it is no different from two or three years ago last year was the aberration, supported by a massive stimulus, with a massive dead load behind it. >> i completely disagree. >> okay. >> when we took over in 2017, the economy was growing 1.5% then we increased to 3 in the summer of 2018, we got it up to near 4%, and then the fed catastrophically saw that increasing growth as a sign of inflation, and they tried to tamper it back by raising rates. that was the catastrophic rate there are two things holding back from the 3% to 4% growth path one is the fed is too tight, and the second factors is the trade

war. look, the trade war is a big problem. i'm not denies that but at the same time i'll ask you that question again why hold rates as high as they are, where we have no inflation in the economy >> on steven, when was the last time you spoke to the at the present time and how do you think he's feeling at the moment >> ask me in a couple hours. i'll be see the president for a ceremony in the oval office, but every time i've spoken to him, he's very frustrated he gets it we cut taxes we deregulated the economy, we're promoting american energy. the fact -- >> no, no, everyone is saying that worked, and it'sic so good% so why do you need to cut rates? >> because we don't want 2%

growth we want 3% to 4% growth. i think the fed is holding it back by keeping rates. >> we want more growth with no inflation. we think that's possible again, i think the fed is aid frayed of some boogieman of inflation. look, i'm an inflation hawk. my point is i don't see any out there right now. >> steve liesman >> well, how do i start? i mean, the idea that the federal reserve has -- that the tax cuts have changed the dna of the economy, stephen, in my opinion, remains to be a question to be answered. >> okay. that's fair. >> the idea that the economy is so weak it could not tain a funds rate -- the real funds rate, you know as a student of economics, if people follow the real funds rate, it's 0.5%. >> yes you're saying that the

combination of tax cuts the deregulation created so much growth, that a real funds rate, a real cost of month, which, by the way has been nearly -- and you know that too, steve -- >> yeah. >> this incredible surge of growth you created could not withstand a 0.5% real funds rate that was catastrophic to the incredible work and programs of the he if the president? i'm asking with a bit of saturday cha sarcasm. >> we had a really nice growth rate, no inflation, full employment, and, you know, so why does the fed have to mess

with that picture? now what's happening with the real economy and that's what worries me, steve. look at what happened to the oil price. the farmers can't make any money with the prices falling like they are soybean prices are a direct result of the trade, corn is going up -- very little research. >> we have another economist in the conversation michelle, i just want to bring you in on the inflation discussion and how severe the low inflation is and whether that should proper a fed move.

>> yay, probably one play to start is to remember this fed is operating based off their assumptions, they have to consider the path of inflation and what it will look like when they were engaging in rate hikes in 2016, 2017, the unemployment rate was well below, and it looked like the labor market was tight and policy was well below what you would consider music, so it would move higher, and along with how you should normalize seemed quite prudent it's not that the level of interest rates it's where is the level of interest rates relative to some sort of steady fate or some sort of neutral i think what the fed is now embracing is this idea that policy is probably gone to neutral, and maybe it's gone a bit above, so we want to take that back. we want to ease a bit to ensure that the recovery will continue, but it doesn't mean -- we're not in recession

we're still creating jobs. the labor market is still tight, and inflation, all things considered, is supposed to trend higher, not climb higher b. trend higher that's this whole yesterday that risk management is trying to engage in. >> we're nearly out of time. stephen moore, another question, why did you put out a formal statement with your views? are you planning to speak to the president about any job offerings that might be still on the table? >> if he brings it up, i certainly will talk to him i'm sure he's not happy with the decision he wants a 100-basis point decline in interest rates. i'm not there. i do want 25 and see what happens. to the other economists on this panel, i mean, you keep talking about how loose monetary policy is, how low interest rates are, but where is that showing up in the economy? that's my point. you know, show me where the prices are out of control. we don't see it in consumer

prices or commodity prices if the fed is so easy -- >> if you're a student of tuition at university -- >> how about assets prices >> well, but the asset prices are rising, because we did the tax cut and deregulation >> stephen, it starts from -- >> steve, i'm sorry that we are out of time. steve -- >> can you not get labor growth and product activity at 1.5 to get to your 3. steve, i want you to win the math doesn't work. we're going to get product activity up. thank you all for joining us and thank you, steven, for facing the tough questions thank you all. >> by the way, steve is prothe briefing room for the lappers reception of the medal he's getting, the co-author on trump

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i'm going to give you this one on the house i'm not bullish on the story or the fundamentals snapchat breaking out, undeniable back above the july high this is under massive accumulation i think you have very little down side if you use a trailing 50-day moving average. so two points risk, six, seven,

eight points up, clearly something has changed with this story in the way the stock is trading we all know that. that hands changed since it came public the they were over-promising, and now feel are. peter joins us.

my view las not changed around this communication i expected the removal of patients, especially the equity market i would think, frankly that the equity market should not love this statement i felt it was quite balanced, actually, and in fact, i think chairman powell talked a lot about, you know, looking for trends, rather than reacting to data points? i thought that was particularly important. it really hasn't been something that people have been picking up on while i think many are thinking that july is without a doubt on the table, i think it's difficult to actually see a trend emerge over the course of two months i think even though they removed the patient language when he talked a bit about looking for meaningful trends.

to some extent, that says they're staying patient even though that word was remove. >> some way -- with all good news that we've had in the last week, whether it's on trade or dovishness, how big of an opportunity is this right now for clients to -- >> well, i think it's really important for investors to be risk-focused here. all the catalysts that have propelled us to near target, by somewhat, that was 2800, are really in the rear-view mirror we had a change in fed language

>> i any it's rich at this point given what our yew look is for the fundamentals for growth in the later part of the year into 2020 i think investors and market participants should really be focused on risk management, tick laply in sectors that benefit from idea that ratesly lower and that growth is going to somehow going to improve magically for example, the home builders have been outperforming, notwithstanding their performance today. she like -- >> pete, thanks for joining us dom, we have just under three minutes of trade with more and what's moving. >> wilfred, bonds and stocks, i want to point out what's happening with the ishares iboxx, a pretty big move higher

at 2:00 p.m., so a big move higher in investment-grade corporates >> but, remember, at these levels, you're talking about the highest price for this etf since september of 2016, so keep an eye on those, and you can see they're all the way back there one other play to look at, stock market, advance and declines, we are seeing a bit of a move there with the stock market showing at least a bit more measured of a responsibility keep that in mind. i will send it back to bertha. over to you. >> we're seeing the nasdaq at higher following the fed decision, about 2.25% away, but look at adobe, earnings better than expected. today, it is back to all-time highs, dating back to april 20th in the meantime you have tech names that surge let's send it

on over to bob. >> bertha, it is very impressive we have pulled off any gains with the big gains we saw earlier. interest rate-sensitive stocks, of course banks move down, we are essential at historic highs, all the bond etfs that dom has mentioned, they're at new highs. not just corporate bonds, but junk bonds etfs. they're all at new highs overall the stock market, s&p 1% from an historic high. we get a china deal next week e. we'll be at all-time highs quickly, the increase, that's the big question out powell set quiter spending and jobs were both strong, but a china deal may reduce those worries as well be careful what you wish for

we're going out right now, s&p 5002927, that is 18 points from the old historic high of 2945. there is the closing bell for the day. the dow jones industrial average ending up about 50 points. we are just about 30 points off the high of the day. if you are just joining us, good afternoon welcome to "closing bell." >> we need a six-hour show strong across the board, the fed did jolt the market higher ultimately we closed up it was the bond

kind of proxy sectors that are doing the best, that is when yields go low er, and financials moving in the opposite direction. it was with a defensive tone and wasn't resoundingly higher. and even though they say they're not targeting the exchange rate, and lower yields. that's certainly what the market is telling us today. josh brown is still with us. and michelle gerard, chief u.s.

economist at nat west markets. jay bowel wrapping up his news conference in the last hour. here are some of the highlights. >> we maintained or policy interest rates, but made some significant changes to our statement. since the beginning of the year, we have judged that our current policy stance was appropriate, and we should be patient in light of increased uncertainties, we now emphasize that the committee will closely monitors the implication, and will act as appropriate to be mindful of some ongoing cross-currents, including trade developments and concerns about global growth. committee participants expressed concerns many fomc he participants say that the case for accommodative has strengthened i would say there was not much support for cutting rates now,

at this meeting. >> does that take the possibility of rate cuts off the table? >> it's really trade developments so we're not exclusively focused on -- that the law is clear i have a four-year term and i fully intend to serve it >> by the way, powell said the work accommodation or accommodating, which is new for him, he said it five times >> it's an audience of one i will accommodate you, not just in the june statement. >> did he do enough to keep -- well, do you think he's going to get another -- does it matter? >> the president can tweet his home phone number. anything could happen. i don't play that game i don't think i have an edge on that >> do you think it's a worry for

the markets? >> apparently not. we have not cared in probably two years. >> michelle gerard, how did fed chair powell change the outlook? >> he clearly suggested that the fed is much closer to cutting rates than i had thought we had expected lower rates by september. it looked like a pretty close call, quite honestly in the end they decided they would wait for more information, but we expect the most likely outcome will be the rate cut in july to me it seems it's just a matter of when, not if >> futures zift off the back of today's meeting. is this a buying opportunity >> we are overweight they think it's some of the more

beaten-down cyclical factors, and assuming that the commit does not deteriorate further, than a lot of these areas that are more sickly call, and areas more sensitive to trade. financials is a more cyclical area, but it's also less sensitive to trade, so financials is one of our preferred overweight sectors right now because of that less trade-sensitive tilt we haven't found financials as sensitive to the yield curve as some might suspend, so when the ten-year three-month yield curve is inverted, that it actually outperformed it's less hinged and more hinged on some of the factors that could be big drivers, and grown within the sector. regulatory risk than it was, and

leverage in the sector and then the s&p compared to where we are ten years ago, so from a quality standpoint, we like -- >> and hi, john. >> hey, wilf you know, revenue came in at $11.14 billion earnings per share non-gaap, versus a buck seven expected the board of oracle declared a cash dividend of 24 cents per sha share. >> braying income grew 7%, which

drove high margin, and that is the application businesses low margin legacy of hardware business, which is a shift away, was a q4 gap of operating margin, the highest we have seen in five years. you see it up roughly 7% guidance on the calls. i'll be listening for it, guys all right, jon thank you. i think a report of active managers are underweight and the areas that push is into cloud are some of the most, the last few years over the xlk, it's been a huge disappointment however, it looks like it's indicating 56. that would be a new high that changes the narrative around this company.

so i would not have a quick gut reaction to it let's see where it settles out tomorrow and see if people start to change their mind. >> the growth outlook in the u.s., and you sounded more concerned? >> the statement itself didn't sound more caution cautious, but in the prepared remarks, you could hear the concerns that the committee has about the global growth outlook, and also interestingly will the inflation outlook. the inflation misses that we have seen is weighing on the fed as much as their concerns, and that honestly has how it's gotten them to this point, where people are believe more accommodation is appropriate

what sector do you want toby >> we're more overweight consumer discretionary, industrials, tech and financial. with the -- and discretionary to overweight obviously the consumer is a lot better off than a few years ago, and consumer sector, this is an area where usually the sector performs now that we're expecting rate cuts, we can't do better than it usually does, so we are overweight. >> bling it back to a couple

stocks >> i think there's certainly stocks that are key to the market now i agree with what was just said about the consumer i feel it is to some extent the only game in town. disney, shattering through 140 right now, that's a new high walmart, incorrect, lu lu, this is like -- not a huge company, but i think it's a walmart, starks, nothing as i menned , globally you're seeing a breakout, and these stocks are ridings that waive. >> and the fed and g-20, it doesn't matter >> if you're someone that's been left behind and has missed them, that's where you get an

opportunity to buy them. >> that's what you want. josh, jill and michelle, thank you ought for -- >> still ahead, huawei ceo is warning that google could be hit hard hard that interview day after day, you need to get it all done. and here to listen and help you through it all is bank of america. with the expertise and know-how you need next so let's get after it. ♪ everything is all right what would you like the power to do?® ♪ all right

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we have breaking news. >> treasury secretary steven mnuchin and mick mulvaney just left a meeting with congressional leaders. he will honor the full faith and credit of the united states.

a one her year continuing resolution at least now we do know what the bottom line is trump wants to keep the government open. >>ie -- ylan, thank you. "new york times" is reporting that some of which linked to jared kushner. president trump's senior adviser and son-in-law we have reached out to deutsche bank for a comment we'll come back with that when it comes in.

wilfred, back to you. seema, thank you for that. quite a long one, as they referred to a whist up blower. they flagged potential payments, including the kushner family, should also point out that it's not just related, of course, to mr. kushner, and also that other banks potentially also might fall under this investigation. that, according to this article. >> just the latest in a string of bad headlines for deutsche bank, i mean, from all angles. >> including mr. drawingi's comments about more easing. stocks in the green today after the fed kept rates

unchanged. glo a. a whole other sector did now. it rantly was an so the banks moved down same thing with real estate. >> thank to bertha cooperation,

we have a fourth straight day of gains. meantime adobe was the standout. really impressing the street as tech shares moved higher in gent some of the lag guards included alphabet, which is still down a bit for the month we're about 2.5% away from april 24th all-time highs. >> bertha, thank you very much. huawei's ceo sat down for an interview with deidra bosa she's in shenzhen, china, with

the highlights. he said that if president trump were to call him, he would pick up the phone. >> translator: he would probably tweet first, and the white house spokesperson will speak first. what if some guy misguyed himself as president trump how could i know this is president trump i was talking to in. of course i would like to let's work together, we can all contribute u.s. is very leading in advance, and huawei will only

lead in a very focused area the united states is still leading. alphabet, which is reportedly advocating against the export ban. and if they don't have their systems, or revenues would drove, too there would be things we would have to shoulder, too. this is an issue of shared interest. >> reporter: if it doesn't work out and google is banned from

supplying huawei phones with the operating system, he says he's not worried. they're developing their own o.s. >> thank you for that. and all the clips on the interview throughout the date president trump i think that's a snapshot of the way the chinese can affect this, because, ceos that are suffering aren't slamming their leader.

>> he says china hasn't slowed down, so the messages, at least -- >> nothing to see here. >> which i thought was fascinating. >> they mentioned google speaking of, alphabet hosted the annual shoulder mean job lipton has some highlights. >> reporter: the vote here going as planned ten directors elected to the board one concern was china. listen, there are no plans for such a certain product back to you guys >> josh, thank you. still ahead on the show,

congressman pats rick mchenry tells you exclusively why he's calling for heina arg on facebook's new cryptocurrency sit, and the impact that could have

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commodity could be on the verge of a breakout. >> you know what i really like is it's been dormant roughly six years. it's a big base formation, just now starting to break south. you need to get it through 1400, but from a monetary perspective, the fed is probably in the right zone to maybe easier than what it probably could be, we're not seeing it in copper, in -- and a breakout for the first time in a long time, we like it at the margin, you said it has already broken ute in other currency. is that purely a factor? or does that suggest momentous behind it that's due >> it tess all currencies are weak and the central banks globally are easier than it should be. the fed is tighter that is the other central banks, but against the for that goal, it looks a lot better. we've also got second shots,

something that's not particularly bullish, the transports. >> you would look at the transports, many of the industrials, particularly right here, when you look at the relative performance, which is rolling over the absolute chart is okay, but the relative performance is clearly weaker here is one of those where the market is telling us the weakness, but the global economy as per the transports where gold is telling us that things from a monetary perspective are probably at about the right level, it for the easing, on i think we're on the verge to have a good pop in some of these names, not necessarily transport, that look like they already have a tailwind to them. wonder if a group like the transports are more sensitive to the trade deadlines? airlines look weak, which that's not a big deal truckers, which is really domestic look horrible, so it's

a strange group it's a strange group, but a lot of big players that historically have a good lead are substantially weaker s&p closed 2926. >> 52-week high has happened -- it tells us we're going to make new highs. thanks so much for joining us. times for a news update from sue herera. >> hello, everyone here's what's happening at this hour the former leader of an update new york self-help group has been convicted of turning women into sex slaves. keep rainieri found gild of trafficking. the prosecutors say the organization called nexium was more like a cult. >> he portrayed himself as a

savant and a genius was a massive manipulator, con man and crime boss. >> the pilot who landed a plane in new york's hudson river, sully sullen berger telling lawmakers that simulator training could have helped the pilots he was part of a panel on aviation this morning. >> we must investigate accidents before they happen we must all want pilots to experience these in simulators, and reading about it onnen a ipad is not even close to sufficient back down to you, sara we have an earnings alert on america outdoor brand. seema? >> a decent report from american

outdoor, formerly smith & wesson revenue at 175.7 million beating forecasts. it comes despite concerning -- it presents challenges for the firearms industry, and reduced consumer demand for firearms, nonetheless shares are up about 9% a reminder this company has a market cap of $500 million back to you. >> seema, thank you very much. still to come on "closing bell", ranking mesh patrick mchenry will join us exclusively to tell us why he's calling for a hearing. if -- and we'll talk to this guy, managing partner scott kupor, whose firm is also backing

libra.

sheryl sandberg addressed this in a keynote in cannes, france, earlier today. >> there are a billion people in

the world who are not connected to the financial system. what we would like to do is help there be a global cry occurrence sit that's more inclusive. we're a long way from launch regulators have concerns we know we have a lot of work to do, but this is an announcement of what we'd like to do, and we're not going to run this. it will be an association not reporting to facebook. >> federal reserve chair jerome powell was also about the cryptocurrency sit earlier today. >> facebook, i believe, has made quite broad rounds around the world really with regulators, supervisors, and lots of people to discuss their plans that certainty excludes us >> congressman patrick mchenley joins us for an exclusive interview, ranking member, and is calling on on maxine walters to hold a hearing on libra

thank you for joining us. >> thank for you having me. >> what's your take? has facebook proved it's responsible enough to be launching a currency >> well, look, facebook is the biggest possessor of consumer data in the world, so there's a great number of questions i have as a policymaker, but more holistically we need a better understanding on capitol hill about the potential benefits and opportunities of cryptocurrency and blockchain technology and why things are happening overseas and not here at home. so there are tons of questions that this raises, and we need serious answers. >> jay powell, as you just heard, said they had he discussed this with facebook does that give you comfort that they did their homework? and it's backed by a number of the top central banks in the country and top occurrence sis >> you have serious players, and

the consortium looks very serious, about you they're doing it in switzerland. that raises questions for me they're having to go overseas, and it raises bigger questions as well, whether or not this is an open-ended cryptocurrency or a closed-off system, only utilized through facebook. so what are the permissions involved what access to consumer data will they have and how will they follow any money-laundering provisions to ensure this is regulatorily permissible in the first world. >> if it got to the point where any cryptocurrency started to dominate the kind of playing field, as it were, should central banks step up to not allow them, to make sure the u.s. does control the dollar and the transactions that take place in the country >> no, i think cryptocurrencies

present a enormous opportunity, and those two things being inextricably linked, what we're seeing is a great opportunity to reduce the costs of transactions, speed the flow, and i think there's enormous opportunity for that >> so just to be clear, are you launching a hearing to investigate and potentially regulate facebook? or blockchain and cryptocurrencies >> these are two separate issues you can have a world view of whether or not facebook is a savior of the world or the death star, but the question of cryptocurrencies is a whole different discussion and utilization of the system they have what i have is for a hearing on the nature of what their proposing with project libra and the consortium, how they will utilize it, the opportunities and intention they have.

right now there's so little clarity on that. that's what i think policymakers should understand. i'm not judging it or prejudging it, but there's so many a open questions that i think we should be better informed. >> should we feel threatened that facebook is launches its own currency >> i don't think threatened. >> you guys didn't hold a hearing when paypal started doing business >> this is dramatically different. cryptocurrencies are different what we see here in the united states, though, is a lack of regulation or lack of regulatory understanding of what cryptocurrencies are they're neither security nor a commodity, so how do you regulate something that's a wholly new and different approach in terms of technology. we need to update or regulation, update our laws to make sure we allow this production, and do so

in a safe manner that's my long-term belief. >> i just want too switch the focus quickly and ask about wells fargo. are you concerned that the time it's taking to find a new permanent ceo? jamie dimon said he felt it was irresponsible for them to let tim sloan go without a replacement lined up. >> i think it was a question the board had to make a decision on. that's for the shores to determine. what we want toes is a well-run institution, and provide that competitive force, so i don't think it's necessarily proper for me as a lawmakers to actually get into the inworkings in the manage decisions. >> congressman, thanks for a joining us. >> thanks for having me.

>> representative mchenry. we'll have much more on the proposed hearing tomorrow when we joined by house financial services committee chair, the aforementions maxine waters. looking forward to that tomorrow on "closing bell." a founding member at libra, perfect to have you here. >> thanks for having me. >> following the congressman so help explain this it's not just him, it's regulator of all around the world. we need to understand from the s.e.c. what the regulatory environment is that will govern crypto more generally. so they have shut down a lot of the icos we haven't seen perspective regulation, i think what facebook is doing is trying to help get in front of that

opportunity, and with a company like that, i think it may be our best chance. >> why switzerland >> it's what the congressman said it's not entirely clear the regulatory status in the u.s i know the s.e.c. has been working on it. i don't know the exact reason from facebook's perspective, but we're seeing more companies generally in the crypto space jurisdictions outside the u.s. >> what about people who are scoped cal about the data that facebook has, some of the irresponsible behavior and whether it turns them into a shadow bank with even more personal data. >> i think they're both fair questions. you know, i believe the government will and they'll address those issues this is a different project. if you think about it, there's ideas that are a lot of people -- even with paypal who's been around for a long time,

there's a load of cunning you can't do business with paypal, so would you have a single distributed money that would allow people around the world to transact, i think that's a positive thing. i think the idea is it's very hard on the internet because of the costs and fraud, to do a lot of transactional work today. >> so i think if internet money takes off, it would basically be an taken dote to those problems. can you get local currencies to a appointed where people don't have to -- >> technical question -- if it's for the unbanked, how do you

transfer money in exchange for libra? >> presumably there would be wallets built, and of course you will need fiat currency to get in there, but i don't know the details, but certainly there's -- >> i want to talk about slack in just a moment. >> yeah. >> but more broadly, the slew of ipos we have seen in q2 in the broader tech space, does that surprise even you guys >> not really. in fact, if you look at it, at least we're on track to do slightly more than we did last year so i don't think it's a big deal if you talk to the fit dells, and blackrocks and t. rowes, there's -- >> you are it an investor in slack, it should be a big

experiment, because it's a direct listing. >> yeah. >> also what we have seen lately from the company as widening operating losses, declining revenue growth and declining -- >> i can't talk specifically about the numbers or financial they are in a quiet period, as you know, but there's a very small set of companies, slack and spotify didn't need to raise primary capital, but i think it will be interest my guess is we'll see a few more, but not a hewn groundswell. >> will you guys by selling a big chunk? >> there are no lockups. we haven't made any decisions about what too do, but you are correct,ened a direction listing there are no traditional lockups. >> it a price-sensitive or strategic based on the -- >> the way we think about it our lps say we generally pay you to

invest in private assets at some point in time when things are public and you feel like you can distribute them, morse of our lps will -- history lick you may do that, but tbd quite frankly. >> scott kupor, thanks for being here today. >> thanks. boeing and airbus topping headlines today. and don't miss the ceo of caterpillar tomorrow on "mad money. money. we'll be every day, invesco combines ideas with technology, data with inspiration, investors with solutions. minutes. ♪

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sglees we have an aerospace double play, boeing and airbus making headlines today phil le bebeau has more. >> not surprising, the southwest pilots union says they're missing out by their own estimate about $8.5 million each month, because they are not ability to fly the 737 maxes as originally scheduled, so as a result they plan to seek compensation from boeing you may say, 8.5 million a month that's not the end of the world, but what happens if other pilots unions say we want compensation as well. remember, this would be separate from any compensation that being

would be providing eventually to southwest airlines also keep in mind they were out with guidance, saying their cost per available seat mile will go up in the second quarter, but continuing developments. >> and then there is the competition, phil, so american alliance will become the first to order a new airbus plane. what can you tell us >> this for the airbus a-321 xlr, that's the extended long rain that they just launched over in paris. there are 50 that american has ordered. the deliversies start in 2023. the real question is, will there be use on new routes philadelphia to basel, switzerland. there's not enough volume for the types of airplanes americans would, but it would be perfect

for the xlr. this is about opening new routes american -- shares of american have been moving steadily higher within the last week shares are down over the last year, and when you look at boeing and airbus, i have the latest updates guys, i got the latest update in terms of orders at the air show airbus, 545 to boeing's 234. overall, we are expecting the fewest orders since 2016 >> philadelphia to switzerland, i'm not sure that ever will be one of the world's busiest. >> it is not going to be the busiest, but there's demands there. will, don't knock it there's demands there. people hear about the routes and say, oh, come on, how many people want to go to bosul look, the airlines would not be considering it if they didn't believe there was a business case there. >> well, we will see i'm looking forward to being proved wrong on that one, phil quickly going back to the total numbers you just mentioned. >> yes. >> given we didn't get a chance to talk about it yesterday, how big a surprise was that massive

order from british airways for the 737 max? >> very much a surprise. in part because this is british airways and iberia, the parent iag, they're basically saying, you know what? we're going to flip back over to the boeing 737 what was interesting, will, not once in the release from iag was there a mention of max they didn't use the term "max. they called them the 737-8 737-10 yes, that's technically their name, but i think you will see more airlines do this in the future if they order maxes it is just one of those words that right now people say, what, what's going on with the max so iag did not even mention it in their release. >> okay. phil lebeau, thanks very much. >> i'm looking at who is based in bosul. >> the soccer team is. phil i'm sure knows more than me on this but we'll see if it becomes a big route in the future still ahead, riding into

china. that's what motorcycle maker harley-davidson is doing the company is ramping up its overseas production. also, bank capital rules there. ig rht international settlement, that's why we would go to bosul. >> that's why we would go, via philadelphia on the way there probably. probably. >> we'll be right back we're exploring quantum to develop next generation energy. we're using ai to help create more accessible health care. we're using iot to create new kinds of digital wallets.

smaller bikes, morgan brennan has that story. >> that's right. harley is partnering to launch the smallest motorcycle in decades, with an engine displacement of 338 cubic centimeters, the bike is to be made in china for china and available for sale by the end of 2020 why this is significant.

this will be the first harley-branded bike not manufactured by harley at its own facilities so china's a key growth area for the iconic american manufacturer retail sales jumped 27% there last year, year on year. but for harley, this partnership, this collaboration is really a one-off. it is a focus on expanding the customer base in china and potentially i think it is doing so well there, other asian markets as well. guys. >> looks kind of cool that bike as well, not the typical -- the fpical harley morgan. >>or sure. >> thank you very much for that. up next, wall street, a look ahead. the key things every investor needs to look at ahead of tomorrow

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squa welcome back time for our wall street look ahead. slack set to make its direct listing tomorrow and canopy growth slated for the latest earning results. let's start with leslie on what to expect. >> we expect slack to set a reference price tonight ahead of the direct listing it is not the same as an ipo price because no shares will be sold at that price and it is also not necessarily indicative of where slack shares will open for trading tomorrow, but it is a starting point for slack's market makers and financial advisers to begin matching

orders from buyers and sellers ahead of the direct listing. slack shares will be listed right here on the nyse under the symbol "work" and should begin trading by midday tomorrow guys. >> leslie, thank you in the meantime canopy growth is set for growth after the market. aditi roy. >> they boosted sales growth by more than 300% last quarter. investors will look to see if the company can maintain that growth they are looking at revenues of 92.6 million and a loss of 36% on the bottom line canopy's plan for when canada's market opens up for edibles in december we will look to see if they leverage their partnership with constellation brands analysts want to know about the company's production capacity and ability to scale up. we are waiting any minute for a result of a shareholder vote on the acreage deal and looking for commentary on the call about that back to you guys. >> aditi, thank you very much

for that 30 seconds left, sarah a well-executed dovish tone from the fed chair without any dovish action in supportive markets but only slightly up, 0.3%. >> how will the president respond i think is one question and how far will this market go in pricing in more cuts. the fed shifted into that position the market was already there and the rates went down even further today. so will the market expect more, more, more, more accommodation >> we will have to wait and see. s&p finishing 0.3% that does it for "closing bell." >> "fast money" begins right now. >> "fast money" starts right now. live from the nasdaq market center overlooking new york city's time square i'm melissa leer we have traders on the desk. tonight, the s&p 500 is less than 1% away from record highs and a top technician says there's one beaten down group of stocks that's the best bet to kaech the rally. we start off with the federal reserve chairman jerome powell sitting on the sidelines with no rate cut let'