s&p no longer positive for the year. there is the closing bell. [closing bell rings] david asman and melissa francis pick it up for "after the bell" with big interview from peter barnes coming up. melissa: stocks dropping in the final minutes. david: i'm david asman. this is "after the bell." san francisco fed presidentt sas wewe may see at least two more rate hikes this year. speaking in a fox business exclusive, we'll have more of the big interview coming up. of course we bring you right back to the markets. here is what else is happening at this hour. big apple getting blitzed. ted cruz hitting the trail inn brooklyn with new york values comment fresh in the minnds of new yorkers at this hour. he will visit a jewish matzah bakery. both candidates working hard to cut into donald trump's big lead in the state. phil mickelson is on the hunt

for number four with the likes of jason day and. annika sorenstam handicaps the field for us. melissa: first we go back to the markets. stocks seeing biggest intraday drop since february. lori rothman on floor of new york stock exchange. what is dragging stocks down today? reporter: melissa, looks like the s&p 500 drops in negative territory for 2016 by one point. 2042. a lot of technicals and fundamentals at play. catch you update on technicals. 2040 is the support level on s&p. we kind of held there. the selling really stoed or stemmed right when the s&p 20 to 2040nd it held there. we'll close up, 20442. on fundamental side, yen agast the u.s. dollar, not to get into tthe weeds, that is referendum lack of confidence in the bank of japan and negative interest

rates. imf christine la r leg guard warned -- christine lagarde warn the central banks they were not tough enouough on monetary poli. fed official reported that there will be two more rate hikes this year. when all said and done called for a risk off today. classic safe haven play. treasurys caught a bid. gold was way up today. the vix, fear index, no surprise, gain of 16%. one trader told me guys, day was a vicious selloff. back to you. >> lori rothman. tthank you so much fo that. great summary. david: joining me now, "barron's" senior editor jack how much. the news from fox business, from sasan francisco, i thought he ws kind of doveish, saying there were be at least two more rate hikes. is that what is weighingng on te market? >> i don't think so. i think it is earnings.

david, 8% drop across the market inarnings this quarter. you can say subtract oil and you still have a round of drop of 4% in earnings. looking later in the quarter, fourth quarter, analysts are looking for big rebound, miraculouscomback with double-digit earnings growth. that is what it looks like for every quarter. that is what it looks like every quarter going back several months. as we get closer to the date, again and agn earnings estimates fall apart. this will be our fourth consecutive quarter of earnings decline. that hasn't happened since the depths of the global financial crisis. there is just no growth and 18 times earnings. david: reason why earnings are going down, people are not buying what companies are producing. that leads to question of a global slowdown. will we be sucked int this global slowdown that may become a global recession? >> i don't know if it is so much a global slowdown, look, remember how many years we'v

had -- david: that is the imfs saying. they supposed to know what they're doing but they don't ways do. >> the real issue here remember how many years where earnings were growing great, no revenue growth. they were cutting costs and getting more efficient. david: buying back stocks. doing financial maneuvering, let's face it rather than fundamental stuff. >> they have reached limits how much they can grow earnings without actually bringing new customers in the door. david: now the chicken is coming home to roost, is that what you're saying? >> i think so. stocks if not quite priced to perfection they're certainly fully priced right now. david: jack hough. one thing, financials were hit the hardest. you heard lori rothman suggest negative interest rates weighing on financials. question whether the banking industry can survive something like that quickly. what do you think? >> it cann survive. itt can't make any money. there is no profit growth. you get squeezed on loan spreads. we thought rates would be climb.

no meaningful climb. we'll be stuck with dismal bank profit foss are a whilile. david: jack, thank you very much. jack hough from "barron's." melissa. melissa: he will not forget about it anytime soon. slamming rival ted cruz for his attacks on new york values as the gop race shifts to the empire state. fox news's blake burman in d.c. with the latest on this one. talk about chickens coming home to roost. reporter: a lot happening in 30 minutes, new york values as us mentioned front and sent are. in his first campaign stop in new york donald trump blasted ted cruz's comments in lead-up the iowa caucuses about quote, new york values. trump followed that up just moments ago. take a look at this. here is individual he just released. >> everyone understands that the values in neyork city focus around moneynd the media. >> i saw something that no plae

on earth coulhave handledore beautifully, more humanely than new york. ♪ reporter: political ad from donald trump, 12 days to the new york primary. might be seeing stuff like that for the next 12 days. meantimeruz has not backed off the comments. earlier today, campaigning just outside of albany, he labeled trump a nw york liberal. >> our friends in the media tell us that donald trump is unstoppable in new york state. [booing] our friends in the liberal media are comfortable with someone who sported andrew cuomo, hillary clinton and can chuck schumer for decades. reporter: rudy giuliani says he will vote for trum the pos reports that giuliani

saidhe new york comments rankled him with. giuliani is sayiying inow he ttacking liberal democratic values. giuliani went on to tell the post there is better w way to sy it. back to you. melissa: at is exactly it. call him a beral. if you want to call him a liberal like new york values like we have the cooties. it was so annoying, blake, thank you. sorry. it chops my hide every time. i can't take it really makes me ad. sorry. here isdavid. davd: there is another ndidate out there, john kasich. he is on the campaign trail in new york today, trying to woo hearts of new yorkers with a stop on his recordic ahur avenue in the bronx, e of the best places in the world. fox business's connell mcshane who is the bronx versi of littletalyating canolies no doubt and fresh fruit and stuff. connell what is thelatest. reporter: i had idea there was presidential candidate coming up here tay.

david i came up here to have lunch. turns out so did john kasich. bla reporting about the new york values and back and fororth between cruz and trump.. there is a s-pac that suppo john kasich rolled out new digital ads today, spending pretty big money on them as a matter of fact take a look at this. >> new yorkers aren't stupid, ted. after we were hit, we rallied, rebuil but remembered. we tell it like it is. that's who we are. reporter: so here in the bronx today, kasich was campaigning, not so much talking about that kind of thing. of course his campaign wouldn't be directly associated with super-pac but talking how he will accumulate delegates and like. at mike's deli on arthur avenue. there are a lot of great places to eat on arthur avenue. i caught up with him, had a chance to speak with him about his strategy. campaign strategy to go inthis is only option and contested

convention and convince delegates to come his way at that convention. listen. >> we have people who are skilled, do this. charlie black, one of the mainin really strategists behind rold reagan. stu spencer. it's a good group of people. they figure this out. i'm just a candidate. i try to rk my way through the day and let people know what i i think about ideas. all that, i don't get too much into process. reporter: there you go, david, not getting too much into the process. but it will be as you know that process is his only option. that is very important. he is not getting to 1237 in terms delegates. the thinking among the campaign, second, third ballot, beyond, maybe delegates come his way. davi that is interesting, both kasich and trump are hammering cruz on new york comments. he will not run away from that easily. connell mcshane, thank you vvery much. melissa. melissa: here to weigh in on the fight for empire state, a true new yorker himself, bo dietl, former nypd detective, fox news

conntributor. i mean, the politicians c come o town. first of all, did you h hear bernieie sanders. he says he knows how to ride the subway. just put the token in. we haven't used tokens, for 13 years we haven't been using toby concerns. wwho are these people? >> i get really upset with cruz, first of all new york is new york. i was down there on 9/11. i don'n't kn if donald was down there, i was down there. when new york came together, when everybody came togegether,e threw all apart all our problems and negatives, had each other. do we have communist mayor? yeah. de blasio. right? but we live together. we learn to live. we have a great police department. have a great police commissioner, bratton there. we armed ourselves to the teeth ready for attack here. new york people stick together. i take exception of cruz's values. i have no values? tell me to my face about my values. i am new york. i love this city.

maybe i don't believe things people believe but can't say new york has no values. i have values. if he likes to ta to me one-on-one i'll tell him about my values. melissa: i would like to see, that i would pay to see that match. people saying on twitter, donald trump is democrat.t. say that say he is liberal andnd in republican clothe. he says new york values, don't sit there, he sat there. you can get his new york values. they're contagious. >> donald i know for 40 years. i'm a supporter of donald. i have to get him to focus on issues. that is what i have to get hihim focused on. my point, donald is hard-working guy. sleeps three hours a night. on top of everything, when he becomes the president, if he does, he will be a great president for the fact that is one of the hardest working people there is. maybe he is not tooo good of a public speaker because we're obviously seeing yelling about the same things but to call new yorkerss having less vavalu? i believe new york comes together better than anywhere in the world. when people need things,s, whene

have to raise money for charities, where do they all come? to new york for the generous people of new york to give them money. i was with the prostate cancer with michael milken.n. where does he come?? we raised $3 million other day at four seasons for prostate cancer. new york values. melissa: rudy giuliani comes out saying he supports donald trump. how much weight do you thinink that carries in this state and beyon does rudy giuliani have new york values? >> let's face it, we're facing an election year that has overtones with three supreme court justices. as it is withth all these progressive ideas with rnie, crazy bernie there, what he wants to do, i mean, we're going to have three justices of the supreme court. which way is it going to go? melissa: real quick, hillary clinton trying to swipe the metro card, do we have that? it iss pathetic. we've been there. at least she wasn't trying to use token. do we have that guys? >> will come out, tens of millions of dollars be funneled

through canadian offices of clinton foundation. there is a lot of stuff mr. dietl h in his investigations here. it will come to the surface. melissa: here we go. here is the video. huma is three rows over there, looking very worried as she can't get -- seemingly for the first time ever, hillary clinton tries to use metro card. don't pretend like you're one of people if you're not. still going. oh. > i don't her, ii don't remer her in new york city in the 1970s. it was place called arkansas or something like that. melissa: something like that. >> she was no new yorker. we covered it all, bo dietl, thank you very much. david: foror the record we like arkansas, bo. brand d knew video, so-c-calledn in white, one of the brussels airport bombers. video showing the suspect's movements following that devastating attack. he is seen fleeing from the airport, moving into a a neighborhood town and then, returning to brussels where he disappeared.

howow many of them have come ba? why don'tt they get t them? manhunt for the unidentified man continues. melissa. melissa: jamie dimon out t with dire warnings for the business world. what he says wiwill have a long-term effect on the american economy. david: san francisco federal resererve president john willias telling our own peter barnes he canan support at least two more rate hikes tthis year. remember what happened with the last one. the markeket crashed. more on the fox business exclusive interviiew comining rt up. >> the masters underway in augusta. can phil mickekelson pull out another winn against the young guns? one of the most cebrated female golfers o all time, annika sorenstam, will join us with her take on this one and maybe some more new york value. ♪ ram trucks are reaching new heights when it comes to capability and efficiency.

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melissa: stocks seeing the biggest drop since february but dow has been down 232 points the low of the session. s&p 500 now back in the red for the year. sorry about that, david. david: even before today's market downturn jamie dimon was warning investors not to get too giddy about the market. in his annual letter to share holders which was released yesterday, the jpmorgan ceo warned that politics and bad policies were slowing down the economy. this comes on heels of administration attacks on businesses this week, trying to lower ththeir tax regulatory burdrdens. here to weigh in on all this, james freeman of "wall street journal." good to see you. thanks for coming in.. >> gooood to be here. david: jamie dimon, some peopl are saying he e is talking his book, he is a banker, doesn't like all the new rulations. ion imf, took them 70 years to

say it but regulations are killg growth in the world economy. even the imf is saying this. >> i guess you could say we're talking our book becausee like america and wanting to thrive. is that a -- david: that is good book to make argument. >> he is making very global point about growth and about the challenges we face in the united states. we have government with huge entitlement promises it can't afford. at same time it is restraining the economic growth we need to pay for those promises. david: the obama administration particularly this week taking to a new level with attempts essentially write tax x policy that focuses on hurting companies going somewhere else to lower the tax burden. first of all, you wonder whether they're scapegoating businesses for political purposes because it is an election ar? fits in with the clinton, sanders message inhe democratic primaries. is is why we have slow growth. this is a big part of it.

you have a series ofof not new laws not passed in washington, t even new rules that are passed under the established process but just, essentially memos out from the treasury saying this kind of merger we don't like, that one we don't like. david: we have a system designed, because our founders saw people would be carried away with power that is supposed to prevent anybody -- you're not supposed to, the president is not supposed to write tax policy. that is supposed to be congress. >> right. we had in our paper today, the ceo of pfizer swinging back. they destroyed his $150 billion merger with allergan. nonot because congress pass ad w law, essentially on the whim of the obama administration, treasury department in particular. david: so put a fine point on that. because of what they we say, jack lew and treasury saying pfizer drops the bid but they still have to pay $150 million.. >> just to get out of thdeal. david: the administration doesn't care. it is not their money. but costing the american economy a lot. >> they know they're probably not going to be challenged in

court but ifif you look at theoy here. they're basically in order to prevent this merger what they do they pretend that allergan, thee other company involved in the proposed deal is smaller than really is. david: right. >> in order to conform to another law. then it is just -- david: rackeket. >> not rule of law. that's why -- david: sort of stuff hucksters, i have to say quickly, bernie and hillary are promising the cure for all of this is socialism or more regulation. socialism in bernie's case. >> bernie is out of the closet as marxist. hillary has been pulled left as campaign goes along. >> will voters buy isn't. >> it's a little scarwhen you see how good his poll numbers are. in hillary's case he are still very bad. only trump's make hers look good. david: james freeman. thank god you and "wall street journal" editorial page arehere to keep us straight on all this. >> you guys too. melissa: loan bubble getting

even bigger. stududents own more than one trillion dollars in loans but don't expect them to start paying it ba anytime soon. our panel weighs in on the debt that is being ignored. how it is coming out of your taxpayer wallet. plus the masters underway in augusta. fire on the course as former champipion jordan spieth and his rivals fight for the green jacket. hall of fame golfer annika sorenstam joins us to talk the tournament. that's next. ♪ when you think about success, what does it look like? is it becoming a better professor by being a more adventurous student? is it one day giving your daughter the opportunity she deserves?

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tiger woods in 2001 and 2:00. 2002. joining me on the phone, haul of game golfer annika sorenstam. thank you for joining us. handicap it for us. >> i just came from the golf course. real breezy today.y. conditions are tougher than normal. you couldn't tell if you were watctching jordan spieth playing beautiful golf. came in with a beautiful score of minus six. golfers are doing well and hang inhere really well. melissa: how meaningful to sport and viewership to have young guns come in to attract younger viewers? when you talk about someone like jordan spieth or guys more colorful, think of bubba watson, he is not as young but approaching 40 which in my book is still young, put so much spirit into the game? he had his ups and downs in terms of his relationships with

the fans but with that golf boys video there is a lot of youth and energy in golf right now? >> that is absolutely right. i would agree 40 is still young. melissa: very young. >> it's a fun generation that is playing some good golf obviously with ricky fowler and rory mcilroy and jason day, especially. they're all tremendous golfe and super guys. they're friendly. they're fun. they're cool and hip. it is good time to be in mens golf. melissa: yeah. it's exciting to see phil mickelson still in the game if you're hanging in and watching for a while. you knowwhat does that mean to the viewership, to have him around and on the tourur and you know, still inspiring fans? >> well, as always there are fan favorites. very generous with his time. he signs his autograph out there. you never know what phil will do next. always has the particular shot in the bag, somewhere you think is unpyable.

there are a lot of fun names on leaderboard. you mentioned bubba watson. he also a fun guy to watch. keep in mind it is only thursday. a lot things can happen. so far setting up to be a great masters. melissa: absolutely. annika, thanks s so ch for joining us. we really appreciate night you're welcome. anytime. melissa: david. david: nice little break from politics. but we're back to politics when we come back. what happens if donald trump doesn't get all of the delegates before the convention? the front runner actually has a plan to win over delegates between california and the convention. there is six weeks there. how is he going to do it? we have details coming next. melissa: no more mr. nicice guy. sanders is bringing the heat to the campaign trail and hillary clinton is firing back too. >> i don't think you are qualified if you have supported virtually every disasterous trade agreement which has cost us millions of decent-payinguale jobs. [applause]

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and georgetown universy professor. kind of eased ssibility of prom trump nomination. california, 170 so delegates, doesn't have enough going into the convention. he has six weeks between the end of t primary season and beginning of the convention. does that give him enough ti to pull in extra delegates he need >>oes, but, he can't start then to that he needs to start now. that's the problem. is trump had an organization, coention-contested organization months ago, and trump has be complaining about it, but just up until recently this week he has put together a team. so he is little late to the game.. david: what do you think of that team, brad? you know these teams pretty well. what about paul manafort and other people? >> great team. paul was therere for gerald ford in 1976. he has been involved in every presidential election since then, every convention. he is an expert that is well thought of throughout the country.

so having him -- david: so how exactly doess donald trump and his team go about persuading delegates to come on his side, particularly after all the animosity in his campaign? >> you have to reach out. you have to personally touch them. tough let them know how important their vote is and that the vote would not be wasted on a trump alignment. that takes a lot of legwork. this is something cruz already started as candidates dropped out, delegates became free, cruz reached out. donald is little late to the game but you know, delegates want to go with a winner too. so it is going to be an organizational effort, led by donald trump and his competent staff, to start reaching out to uncommitted delegates and continue that procesess well up until the election of a nominee. david: wow. it just never stops.s. i mean every step ofof this campaign is exciting. brad, thank you very much. good stuff. appreciate it. melissa? melissa: the fightetetween democratic candidates bernie sanders and hillary inton is

heating up. clinton caing into question whether sanders qualified to be president. prompting sanders to immediately hit back. take a listen to this. >> i don't think that irqualified if you get $15 million from wall street through your super-pac. [cheers and applause] i don't think you are qualified if you have voted for the disasterous war in iraq. melissa: fox news's ed henry standing by in washinon, d.c. with the latest on the campaig trail. battle is getting heated here. >> it is interesting, melilissa. i've been out on the road with both these candidates as you know. both clinton and sanders are making a big deal how republicans are in m middle aftr food fight and donald trump and ted cruz and personal lives and attacks and negativity. they have been promoting they're running high-minded policy discussion and they like each other and they have differences onon policy.

and now we see igetting very personal, very negative. tough wonder if a big g part of thiss the fact that frankly bernie sanders is just stuck around a lot longer than hillary clinton wanted. and thk back about a weeeek or so ago, when a sanders sympathizer, if not outright supporter at greenpeace, activist, environmental activist, approached hillary clinton on rope line, you're taking all money from oil and gas industry. she kind of exploded, the sanders campgn needs to stop lying about me and my record. that bubbled up there and showed, hillary clinton herself, not just her campaign is quite frustrated at what they see is very negative tone from bernie sanders. frankly they wanted this to be over a long time ago, melissa. melissa: looks like it is not comingo an end anytime soon. ed henry, thank you very much for your time. >> reporter: thank you. melissa: here to weigh in on the democratic war of words, nomiki

konst, klein bernie sasanders supporter. jessica, let me start with you. what do you think about what bernie had to say? >> the back d forth th two candidates trying to separate themselves in sisituation where they're not that far apart on other issues. that is unfortunate thing. pales in comparison to what we've seen on gop side. melissa: nomiki, they're not very far apart? i think theare very far a part on issues. sanders is a marxist. >> i don't know about that. melissa: he says he is a socialist. >> he is democratic socialist. there is a difference. aside from that, i do agree -- melissa: there is a difference? what is the difference? >> we'll have philosophical debate different time. issues are very clea hillary clinton's record is not matching her rhetoric. the rhetoric of this primary, rhetoric she was been campaigning with. two days ago she tried to take credit for $15 minimum wage when

she is for the $12 minimum wage. she stood up there with governor cuomo and took responsibility for it when bernie sandersrs was for it. she was pronafta and protff and now she e is against it. she acceptsoney industries. that is literally in the strategy they put t out there in press release. memelissa: not to mention, jessica, she can't use a metro card. we showed people that earlier. i'm kidding. i'm kidding. >> i have a hard time with mine. melissa: i needed excuse to use video again. we have seen two different faces ofof her lately. she was in new york saying bernie sanders took this swipe and came back with sort of this nice comment, saying, well, i think no matter what he is better than trump and cruz. as ed henry pointed out two days ago she is screaming with a pointed finger on n the rope lie saying i'm so sick of the sandnders campaign lying about . which one is it?

is he okay and my buddy or is he a liar? >> i think it is both because we're in competitive race, and they're competitive race. good thing they kept it actually pretty civil. you're never going to say, oh, yeah vote for my competitor because he is better than me or we're different. making those sort of comparisons doesn't necessarily work. i mean i if you want to win you want to win. bernie wants to win and hillary wants toin. i can say for sure, like hillary does and bernie would said he do, as democrats we respect each other. i respect nomiki. i respect bernie sanders. i am thrilled to know that in philadelphia we're going to come to a decision and have a candidate that we will all get behind as democrats. that it is going to be next president of the united states. we can be proud of that as opposed to what is happening on other side this is- melissa: nomiki, any one of the things, people say it isoo civil, relatively self because it not real race. hillary clinton had

superdelegates locked up before the whole thing started. so the whole thing is a bit affairs any way. how do you respond to ththat? >> maybe that is what media thinks but hillaryhinks and dnc. melissa: whahat is the math. >> 200 pledge delegate difference. most superdedelegates are not nominated or elected after the primary and chosen. that is the math. there are basic dnc rules. media don't understand it and it is complicated and we don't get thislose in a race. i have to differ are jessica and i respect immenselely. hillary clinton has been calling bernie sanders a liar. been going out there saying i want there race to be done with. that is essentially saying to voters i don't respect you or this process. you're voting for me on pape but i want this race to hurry up. i worry if we are going to unify at convention behind bernie or hillary, if it is hillary, she is notoing to be getting a lot of those voters who have been disaffected, are independents, first-time voters, people brought into the democratic process. these are people who are siding with bernie sanders, just because they believe in his message. i think they're sending a

message to the dnc, you have to change your ways. pushing a candide not reflecting future of the party. melissa: because, it is same thing republicans are seeing on their side, same thing. >> she is not calling him a liar. she is saying his campaign is spreading lies which is very different things as opposed -- melissa: well, that is semantics. >> iis santics but we're in politics. that is how it works. >> that is exactly what happened with the comment that was made when she was asked the direct question that started this whole kerfuffle about the dailily news to begin with. it is new york. it is media. that is what goes down it is hot and heavy race. that is the situation n but for sure when bernie sanders supporters if they have to choose hlary clinton over a ted cruz or donald trump, i don't -- >> i don'think they will choose, jessica. i think they stay out and stay home. melissa: we'll leave it there. >> thank you, guys. david: distinctions without differences a lot of that in politics. melissa: we'll see. david: mr. cruz, you're looking at live pictures of ted. looks like he is making motzah.

what could possibly go wrong. david: i don't know if he has done that. i never done that cruz is still under fire for comments he made in january during that fox busine debate where he said, criticized donald for having new york values. he meant that as insult. melissa: what? david: donald turned it completely around, 180 degrees made it insult into ted reminding him how new yorkers came through 9/11. cr is cong in third in the latest state polls. both trump and kasich goingg after him for thosose comment about new york. so we will see whether this visit t at the not -- motzah factories. melissa: this is thene of the welcomes. take the f-u, train, ted. one of our local newspapers. new york values. david: this is daily news. they like hyperbole. bottom line, new yorkers have not forgiven him for that. we have long memories.

melissa: first glimpse of a new story in the galaxy far, far away. >> reckless, aggressive and undisciplined. >> this is -- isn't it? i rebel. melissa: i know i do, i do. david: also old college try ain't what it used to be. while hillary and bernie are promising free educaon for everybody, taxpayers already are stuck with a huge bill for student debt. wait until you hear how big that bill is and how many college students are not paying it off. there are two billion people

who don't have access to basic banking, but that is changing. at temenos, with the microsoft cloud, we can enable a banker to travel to the most remote locations with nothing but a phone and a tablet. everywhere where there's a phone, you have a bank. now a person is able to start a business, and employ somebody for the first time. the microsoft cloud helped us to bring banking to ten million people in just two years. it's transforming our world.

davivid: bernie and hillary keep promising free college education on campaign trail. turns out a lot of folks with student debt think we're already there. "wall street journal" reporting that astounding 43% ofof folks with student debt have not been making payments since january 1s1st. so our political promises

encouraging folks to default on what amounts to $1.2 trillion of student debt? here to weigh in steve moore, heritage foundation. also fobs news contributor. and erin ehrlich, a millennial and attorney as well. so, steve, are these politicians making things worse? >> well, $1.2 trillion, that is a mountain of debt, isn't it, david? one of the real scandals is how much colleges are charging these families that they have to rack up this debt. but will say this. there is kind of entitlement, not only do kids feel like this stuff should be free or at least subsidized. when they rack up the debt they feel entitled not to pay it. that nobody will come after them. david: right. eric, it has been a while. i paid off mine $100 increments over 10-year period. sod like a little bit but meant a lot to me. if i heard, hey, if you wait a couple of months or maybe a year or so, it isll going to be free, i probably would have waited. i probably would have defaulted. >> what we know already the

government really isn't fervently pursuing these borrowers anyway. essentially we don't even need bernie sanders. we already got free education because the government recognizing if they heavily pursue the borrowers they will ultimately destroy the credit. there will be thiriripple effect ultimately have negative effect on economy. we already have frfree educatio. >> by the way -- david: this sets off such a million different perverse incentivives, one of those perverse incentives, colleges themselves spend like crazy. ththey get it from both sides. rich parents that are paying an afford to pay and bet money government. they don't see need to cut cornsersrs. they're as much to blame as politicians. >> no doubt about it. biggest scam in america, amount colleges and universitieies are chargiging our families. no doubt about it. making it free to have the taxpayer pay for it, that will wowork as well as health care in

terms of reducing costs. i will say thihis, i know a lost high income, individuals, people making over $100,000 who are not papaying back their student loa. that is is did gracece. david: why should you if you get promises from politicians. erin i owe you one. we had breaking g news. start with you next time. erinin, steve, thank you very much. melissa: san practices fed president john williams telling peter barnes two more rate hikes could be on the way. we'll bring g you more of the fx business exclusive interview coming up after the break.

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[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is. david: market has been focused on this one. are interest rate going up in 2016? new documents released by the fed calling into question plans to raise rates any further this year. appears the fed is very divided

over next policy move. peter barnes sat down for exclusive interview with federal reserve president john williams, to find out what actions the central bank height might be leaning towards s taking. pepeter? >> that's right. we came out here to talk to john williams about the economy and future of fed policy, including possible additional possible interest rate increase this is year. >> sure. you know the economy, u.s. economy is doing quite well. we're adding lots jojobs. we're hadding pace to add 2 1/2 million jobs. i see e economy having good trajectory going into this year. in terms of inflation we had good news. inflation low 2% target last several years. we're seeing signs inflation is picking up. that is a good thing. hoping that will continu reporter: what does that mean fofor your outlook for policy, n particular, everyone wants to know when the fed will start make,ts next momove to raise interest rates?

as i always say, policy decisions are data dependent. i've been watching data flow very carefully, what does it mean for our outlook. again i'm pretty optimistic about achieving our goals of maximum employment, sometime soon. i think we're very close or a that goal. inflation is still one thing we need to see more progress on. my own view, is that, with this solid improvement and nearing our goals it is appropriatate fr us to gradually raise interest rates over next feyears to get them back towards more normal levels. exact decision, what meeting we'll do that, will depend on data analysiand importantly the discussion at the committee meeting and really seeing all the aspects and around the economic outlook. >> your last speech you said, which was couple weeks ago, you said, let's just stay on track. which was interpreted to mean, well, in the last set of economic projections, you and your colleagues were looking two more rate hikes this year. do you think that if outlook

unfolds awe expect, we could see two more rate increases this year, more, fewer, what? >> if you look at projections, my colleagues and i put out there, you see your number of two, tee, some four, some people four rate increases. again it will be depending on data. if u.s. economy continues to add jobs to the pace we' seeing, if inflation continu to improve clearly we should be raising rates gradually the way people are writing down their projections. there are a lot of uncertainties t there. we're cognizant globally econic growth is slowing. that was repercussions in the u.s. reporter: is it fair to say when you talked to reporters a couple weeks ago you foresaw two or more rate increase this is year? you still stick with that? >> that is my personal view what i would expect to be appropriate policy but you know, again we'll see how data come in. if they come in as i expect i do think that is the right course.

reporter: now we continued our discussion with him for another three or four minutes, david. we posted that part of the interview exclusively to foxbusiness.com. in that i asked him about fed chair yellen's speech last week in which she said that the, suggested the fed should be cautious moving forwarwith additional rate increases because of turmoil in the global economy. williams said of course he is watching all of the overseas turmoil as well. but, he downplayed any possible rift with yellen on policy, fed members hold a range of views on the u.s. economic outlook. he said while someembers might see some downside risks to the outlook, he personally thought that the risks were quote, pretty well-balanced with some potential, some potential strong up side for the economy. david? david: very interesting. they talk up the economy but won't give us those rate hikes. melissa: right. david: bottom line is, i don't think janet yellen will give us a rate hike before the election, do you. melissa: i don't think either.

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melissa: new force awakens "rogue one," "star wars" story hits theaters this christmas. david: you can't wait.t. "risk & reward" starts right now. deirdre: from happy crowds in wisconsin to protests in the biggs apple, this could bebe a wake-up call for texas senator ted cruz. right now donald trump piling on. this is "risk & reward." i'm deirdre bolton. the cover of today's "nenew york daily news" with cruz z didn't mince words either. some new yorkers seem to agree. >> [shouting] >> we love you, cruz? god bless you. >> get out of bronx! >> ts is immigrant community. we deal with climate change every single day. you u want to say it doesn't