chris mark. >> we think the fed listens has been a great success for us and i'm not sure what will repeat it, i would imagine this entire monetary policy review will be constitutionalize and be done every few years. i would say this, we talked to educational institutions, healthcare institutions, community groups, labor groups, not just businesses. all of those groups are represented on the boards of regional banks. we also meet quite regularly at the board with representatives of low and moderate income communities paid were very conscious that we represent all americans and hear all of their perspectives. that's when we talk about low on appointment rate, the aggregated unappointed rate in groups of having experienced that. so we try to remind herself that we serve everybody. >> steve matthews with bloomberg. you mentioned the housing in today's gdp data, when you look

at that do believe that you have achieved a soft landing or achieving a soft landing with the trend growth for the rest of the year end next her? >> so that is our outlook overall for moderate growth of around 2% which is pretty close to trend. it could be better and it could be worse. you've never say you've achieved it. but that's our outlook. and we feel like your current stanza policy is appropriate as long as that remains broadly in our outlook. >> donna with cnn, terry powell, setting aside market expectations, for today's rate cut obvious a 97% expected this would happen today. can you tell us a little bit more about the rationale behind moving at this particular meeting as opposed to waiting six weeks and cutting in

december and if there's any discussion around that? >> i think this seems to be the right -- you can see we had our usual range in perspective but in the end we had a strong vote in favor of this action. and i strongly believe it's the right action and we believe the actions were taken over the course of this year have been the right things to do for this economy and are supporting economic growth and will do so in the future. >> thank you, greg -- is seems like the differences all across the country, there's different regions were acting differently, the china trade in some regions are much weaker than others, there's urban first world device in the middle of the country, how does that factor into your

policy decision. >> with monetary policy, it is a blunt instrument. we obviously cannot raise interest rates and lower them other places. we are very conscious, the first thing to note is to understand that, when we call that out as your i'm sure no and one of her recent monetary policy reports in the rural urban disparities in employment and growth in all kinds of things in health outcomes. it is a big and growing difference, we don't really have the tools to request that but we call things out that are important to our economy that we may not be or have the right tools to best address them but we call them out because our spending all of our time with the economy and those are issues that may be have to be addressed by legislators and at the national level and state level.

>> are you asking congress to do something no or will you ask them to do something down the road? >> i'm not asking congress anything right now. i sometimes have noted that it would be appropriate -- put it this way, we do what we do, were assigned a job which is maximum employment and stable prices with your financial stability with bank relation. the u.s. economy faces significant longer-term challenges of our potential growth and label participation around disparities of income and around all kinds of things. those are issues for congress. they're not issues for us. but if you really want the u.s. economy to be all it can be in raise the potential growth rate of the united states, you need proper monetary policy but is really physical so policy that includes growth.

>> and with the los angeles times, i think you said that the primary positive meant and related to the outlook on trade and specifically prospects for phase one agreement with china, i get the ups and downs of the trade dispute in several deals have fallen through. are you concerned by involving monetary policy guided that's dependent on good part of the wind with the trade negotiation? >> that is not how i would characterize it, i noted that it may be that there has been progress there towards bad outcomes and potential outcomes,

is seems like there is a making of a possible -- i'm just noting that's the case as a brexit. it's still quite uncertain what will be the result of the election and what the ultimate result will be. but the tail risk of a nonnegotiated notable exit seems to have decreased just as the situation in a trade negotiation with china has taken a step closer to resolution. >> that is all i am saying. >> let's say it doesn't work out noout. [inaudible] >> that's one factor into many factors with the assessment of outlook. if things happen to cause us materially to reassess and change our assessment of outlook in a material way, then we would

act accordingly. >> you pointed out many times in the past the rising inequality for the past decades and how that could be affected behind the growth. in light of the recent outcome of the strike of general motors to see the union have a role to play heading towards a lower and middle incomes and promising more share growth on the runway? >> not for us to say what the appropriate labor arrangements will be. i will just say on the general motors strike, it's likely to

have taken away a couple of tenths of growth this quarter, that is likely to come back over the first half of next year end i think it's good to see is subtle. but i will not, on the appropriate labor arrangements, that is barfield from our. thank you. >> thank you chairman. i'm wondering if you would categories the current stanza monetary policy is accommodative or just that neutrals lower that you thought than this time last year. secondly, we are now two years removed from the tax cut of jobs act. in the economy is growing at the same pace as it was before, 2%. so given your mention of fiscal policy and supporting long-term growth, is it fair to say that

the tax cut and jobs act worked the way it was supposed to. thanks. >> say again your first question. >> so if you look at where the federal funds raised trading should be in the middle or lower half of the range of 150 - 175. that means a real rate is probably modestly below 0. i think my own sense would be that is somewhat accommodative policy. i would say though, there is a range of what the neutral rate

of interest is and i think many of those who make such estimates have moved the estimate down over the course of many years and that process continues. nonetheless, that seems to me too be very likely in accommodative stands of policy. inappropriate stance given the situation were in and downside risks and what i mentioned. >> hi i'm from market news, i wanted to ask about financial stability, recently other global policymakers have been expressing concerns over a high level of corporate tax. as rates get lower in the u.s. and around the world are you more worried about stability risks? >> we monitor them very carefully all of the time. it's what we do since the financial crisis as a mentor before. currently, we don't see large imbalances, the long expansion is notable for the lack of long financial imbalances like the ones we've seen before the crisis happened. so we have a four-part framework and i'll mention the first

leveraging the financial system by historical standards, the second is funding risk which is the risk of funding and that is quite low for banks but also for the nonbanking financial sector. if you look at asset prices, we see some high asset prices but not broadly across the range, we don't see bubbles and that kind of thing. that leaves the fourth which is leverage in the nonfinancial sector which is household and businesses. with hassles we don't see leverage we see them getting in very good shape in the aggregate plenty of household in the aggregate the household sectors are in a good place. that leaves businesses where the issue has been, leverage among other forms of businesses is historically high with monitoring it carefully and take appropriate steps. that's what i would say. the corporate debt is one part

of a larger part of our framework and it is something were paying quite a bit of attention to and it's been part of the last couple of credit exams and we have been monitoring it carefully and taking appropriate action. >> hi nancy marshall with mortgage claims. have the problems lead you to looking to whether equity and capital requirements for banks are too high, is that something that the fed might review? >> i think again the most important asic thing is to get the low reserves backup, preserves move up and down with volatility and we don't want them to move below the level and were at the beginning of september which again between 1.45 and 1.5 trillion. that's the main and first thing.

rhonda path to do that between the market operations and also our bill purchases. in addition to that, we are looking if a big comp located marketplace, and there were surprises as i mentioned the banks that had told us that the lewis comfortable level of reserve was here, they were well above the and did not deploy the of quiddity when there's opportunities to do that. it did not happen. and were during careful analysis of that. you ask will be lower capital liquidity requirements because of this, i don't think so. i don't think that's where this goes. to look at intraday liquidity which used to be a common thing for banks to have it from the fed which is daily overdraft which is something we can look at in a few technical things we can look at that would perhaps make the liquidity that we have

which is of example in the financial system, move more freely and be more liquid if you will. those are things we would do but only if we could do it without compromising safety of our financial stability. >> thank you very much chairman powell. i'm from the japanese newspaper. given sustained inflation even in this country, there seems to be a higher possibility that lower inflation expectation will remain going forward. do you think japan -like situation of low inflation and interest in getting chopped by

the benefit case and of the situation. do you think so? >> soweto course have watched the situation in japan and now the situation in europe and we note there are significant this inflationary pressures around the world and we don't think were exempt from those. but of course if you look at our current inflation performance, it has not been anything like what we have seen in those other places. but we don't think were exempt from those pressures and were therefore strongly committed to having inflation expectations anchored at the level that is consistent with the 2% inflation objective. that's what were committed to and we use our tools to achieve. we take the risk very seriously, the risk is not inflation might run a couple tenths below 2%,

the risk is what we seen is our economy getting under this path and very hard to get off. once inflation expectations lie down inflation moves down and you have less interest rates move down as well because of inflation component and interest-rate than the right thing to do is to do what we can now to move expectations so they are squarely and firmly anchored that's consistent with 2% inflation. >> hi brian wit. there was a discussion that maybe the fed should move to a more neutral balance sheet moving the agency mortgage-backed securities on the balance sheet and replace them with short-term treasuries.

i haven't heard an update on the composure of the composition of the balance sheet for right now, i'm wondering if the fed is thinking about that and if so when we might expect to hear something. >> it is an issue but not one we are currently working on our reaching a decision. the question of a longer run composition of the balance sheet is a big one and will return to overtype but not intimately. [inaudible] >> the president tweeted saying the greatest economy of american history, i just want to share the central bank of what you made of that characterization. >> all maintain my loctite practice of not commenting on anything elected official would say. >> thank you. >> thinks very much. >> breaking news, the dow spiking in the s&p on track for a new record close, the nasdaq even flipped over turning

positive at a key moment during federal reserve jerome powell news conference. that point when edward lawrence pressed jerome powell to say exactly what he in his die committee would need to see before they would consider raising interest rates. powell answer, not just higher inflation hitting the fence 2% target but here's a key, he says he needs to see inflation at a persistently high rate and that when the market took off. this se spike was stark when pol gave that remark, it had been down 26 and moved lower at 2:00 p.m. eastern as widely suspected decision to cut rates of a quarter of a point to one and half three quarters point but as he took questions specifically the one from fox business edward lawrence the dow jumped and is now pretty much at the height of the session up 84 points. i want you to see the nasdaq and s&p. the nasdaq was down 19 at 2:00 p.m. eastern time it is now up 23 points and the s&p 500 i

believe, it is down for at the point where the fed made the announcement and now it's up seven and that is still a pretty decent move because it became flat right before that question from edward lawrence. we have a big move to the upside with the markets believing. we really have to see a persistent hitting of this inflation target which we are not at right now. before we would see rate hikes. banks which are likely impacted by interest rates, they did weaken, they're already the moment. 1.8%, it is now at 1.78%. that actually makes sense because the yield tends to fall if the dollar strengthens, let's look at that, it's done nothing but strengthen since 2:49 p.m. eastern time, everything to the upside, we have a canadian dollar slightly weaker against the u.s. dollar. he was pressed to why the u.s. economy is stable did it cut

rates for the third time since july. powell said the committee was fighting dark forces which he named the trump trade war with china, weakening global economy and decline and made america manufacturing. there is a volunteer, the markets love the news and if we get any clues as to what the fed will do at the next meeting at december 11. let's bringing usa steeper shadow and securities global fixed income had. i want to get to steve first, the last time you specifically said the fed needed to print money right now. interestingly they kind of have but the big news is today, that he did not signal that they are close to considering raising rates. >> i think that is important but what is fundamentally driving the fed's decision is what happens with the currency. the fact that the currency went

up on what the chairman said today and yield to move down, i think it'll be a problem. they made that surprise shift to producing bills. and after the dolly went up to about 99.5 which is just below a level of 100. that the level where corporations get concerned about their ability to grow their businesses. i think the fed will recognize that and that's why they did it and i think balance sheet is more important going forward then interest-rate. >> they did make a really interesting point, he kept saying that business confidence is still very shaky due to the trade war but he also said if the trade war were to be eliminated or fixed and we could see assigning at some point although we did at breaking news if you just tuned in, it came at the aipac and to lay it's been canceled and may move to another location.

i certainly might mean off to the races. >> absolutely. the chinese came out right away when chile canceled it and said they offered out by cow as a possibility. it's really certain that chinese want to cite it more than we do and trump needed for his election. as far as the markets go, the fed was mildly hawkish in your scene in the yield curve, here seeing the flattening as you just pointed out, ten years of broken through 180 - 178. the front end is a little weaker. i think that's where they want to be. the markets might have been anticipating this a little bit but so far i don't think it's any big changes in it gives the stock market a little bit of room to go up more than where it is right now. mildly hawkish at worst. >> we are up 100 points of the dow and you have to know where we were minus before the

announcement, we were not strong during the announcement it was at the point of inflation. let's talk about the u.s. economy in a question that may be in some of our viewers minds. for those of you who don't understand rate cuts are supposed to be used for emergencies. why is the fed cutting rates when the markets -- look at the s&p were about to see an all-time record high. >> is the fed concerned over time. when it went down this path of so-called policy normalization they went too far and started to get concerned that they went too far and so evident in the yield curve. because the flattening yoke curve environment brought about equity market it took place last trip. that was the driving motivation behind. i'm surprised it took them ten months to get around to doing what they needed to do. but the reality of the situation, that's where the problem developed. the fed has backed away from the other looking for an excuse they can used to justify what they're doing. back in the 1990s in the

previous expansion and history, greenspan did the same thing, he did three rate cuts just like jerome powell, and he called it the cause that refreshes. jerome powell has them the same. >> tell me as we point to the markets, were again the session high, up 118. there are 36 minutes left before the close and were getting lifter earnings, starbucks earnings, apple earnings after the ball so huge moment, would you look at as the best investment right now. >> were looking at the best investment, surprisingly emerging markets might be the best investment right now. they have gone down quite a bit and there's a lot of room for them to go up, i would not touch argentina but i think china looks pretty interesting, i

think india looks interesting so i'm bullish on emerging markets. that's why we put money right now. >> thank you so much for rocking and rolling because as we mentioned were watching a powerful bull run right now, we think steve and andy. the chrysler and owner of psa have now agreed to merge. we broke the story during this hour yesterday but now the psa board has approved the major merger while it set to meet later today we are looking at the stocks, up nearly 3% chrysler up about 6%. fiat chrysler is set to be the merger company while the ceo of the merged company. i want to bring in a floor show. let me get right now to teddy westberg were looking at a record high for the s&p right now, what do the markers under markets and investors love about

this announcement from the fed or was it the question that edward lawrence was able to ask where he wrestled long-term vision the fed. >> i listen to as much of the meeting that i could in the question in answers and i absolutely did not hear anything that i found disturbing. [laughter] and i thought it was relatively positive meeting and the answers were positive and i thought powell did a good job and i think the markets like what they heard and the biggest positive is the u.s. economy in spite all the naysayers and negative headlights, it's a very good shape with all the issues out there, the market continues to climb and the markets are telling us that things are not nearly as bad as those people that send the negative message want us to believe.

>> were in uncharted territory, s&p 500 that has just hit an all-time record high which is really interesting. do you feel the fed did the right thing, do we have enough arrows in the quiver if there were bad downturn, not here, we were very good economy but elsewhere? >> i think we did the right thing, the mistakes from before raising interest rates, but everybody loves edward lawrence today. >> because he admitted to the world he wants inflation and even though the dollar went up, look at gold which were after the announcement was down near the low end and all the sudden we reverse that and it's going up a dollar, look at gold, almost six or $7 for silver. that was quite a reversal, because it was down almost $4. quite a turnaround. the bottom line, jerome powell

is saying all the right things. but from a commodity viewpoint, commodity traders have been suffering with a low-inflation and they want to see activity and been hurt by the u.s. china trade war which has been inflationary for some of these other markets. i think the push for inflation is definitely going to help commodity. >> can i get a shout out for something obscure, did you see peugeois85% of what it's used f, converters and cars which helps clear the omission air. i found that fascinating there is a shortage. we won't ignore all investments to look at stocks, it's important to point out things like that, slightly below 1800. but that was a big deal, let me

just geek out about that for a moment. tell me what your thoughts are of what chairman powell does now in the meeting in december. >> you have to understand jerome, the lawn della, absolutely perfect, he was able to say we are not going to cut rates, we will not raise them, the economy is in a good spot and will go to the 2% inflation, we have your back but we can wait because we need to see what the cuts do through the end of the year. he accomplished it all. you have higher highs coming in my opinion for your christmas gifts. load up. >> do i want a palladium necklace versus a platinum or gold? >> i think you do. because you can put in your

electric car too. >> oliver equity investors, you guys and our gold investors need to hear what edward lawrence said, he is now joining us because edward i have to tell you, as jerome powell answered the questions after the fed rate cuts, of course third time this year i found it fascinating and listening the market spiked. as he answered your question about what would it take. >> that's the point, he said there in apostate and the stigma changed to act appropriate to going forward with the path should be. but my question was, what happens and what do they need to do to raise rates, what did chairman powell say that really set things off, meaning when he went forward talking about what it would take to raise rates and he'd like to see that inflation rise up to the 2% level in like to keep going, it basically said he was not going to raise rates, by saying he was not going to raise rates is that the market

off. i want to hear exactly what he says. >> we just touched 2% core inflation to take one major and just touched it for a few months and then we fallen back. i think we would need to see a really significant move up in inflation persistent before considering adjusting inflation. >> an indication that they were not going to raise rates again unless inflation gets out of control on the other side and as we know it is been under the target and it will be under the target. there were two defense again for the statement. the same to, three times in a row now, kansas city president in boston fed president believe the fed has met their mandate, the stable prices and maximum employment. but the market liking what chairman powell says, there will not be rate increases until we see significant inflation and no

inflation pressure at the mome moment. >> intraday is what were looking at and where we saw the spike on the word persistent. we really shook that and i thought it was important to hear the markets did too. phil said gold moved up $6 which is interesting because the u.s. dollar only further strengthen. we have a lot of concurrent moves and will be watching a great job. for the average person, we need to attack this issue, what does the federal deserve decision to cut another quarter-point really mean to you and the company to invest in. we are looking at being invested. is now the right time to buy a home, locking a mortgage, refinance a mortgage, get a home equity line of credit, what

about getting an auto loan, if today's moves is a punishment to the diligent sabres, let's bring in a guy who knows. here with us live to tell us, let's detect each one of these things wanted a time. what is your thought of how it does work, when the fed lowers interest rates, that is not a direct mortgage rate or anything like that. >> it is not. mortgage rates are based on long-term interest rates rather than short-term rates that the fed controls. we have mortgage rates plunging at the beginning of the year end that was long before the fed started to cut interest rates. furthermore as the fed has cut rates the past few months mortgage rates have held steady. mortgage rates are a full percentage point lower today

than they were this time last year. that a substantial savings for anybody that bought a home in 2018. >> let's get to credit cards, credit cards are usually tied to the prime rate which does not necessarily track exactly what the fed does but it does get led by the benchmark rate, i'm worried about 17.5%, which is that transit to 70s monthly interest rate payment. >> good news credit cards mimic the moves that the feds make on short-term rates. the bad news, they mimic a lot quicker when rates are rising then falling. it's going to be 60 - 90 days before cardina cardholder see t. the average rate is 17.5%. congratulations it'll take indent of 17-point to 5% rather than sitting back waiting for the lower rate to come to you, take advantage of this environment and let the transfer offers. >> auto loans, it is different, it's up to the discretion of the

companies that are selling these to your. but they tend to move. on these rate cuts. >> a little bit, we see less sensitivity in the cycle, both up and down because rates were really competitive to begin with even when the fed was raising rates because in 2015 and 2018 we did not see much move and autumn loan rates. rates are still low yet they come down a little bit more but the competitive horses in the marketplace. >> this is been a win-win but those who want to park their money in a bank savings account have just gotten killed and this does not help the situation. savers have been choked. >> while borrowers benefit, it's a savers i stuck with the bill. once again were seen savers agreed to pay the price of lower rates. that benefit they got as rates

were rising over the past two years we have now unwound a herd of that, that has rolled back three and free savers this will take you back to where you were in 2018 so yes you've given that back in if you're shopping around, you're still ahead of inflation and that something savers could not save for more than a decade up until recently. >> probably at the moment why we have the financials which are down earlier most in the red. thank you very much for joining us. >> let me go back to the markets, i need to pull up one index in particular yes we are green on the screen but look at the dow transport, they are tapping the brakes, down 189 points, off session lows following federal reserve chairman powell's comments, we have the transport standing at 10640, session lows and the loss of 291, we came back wit by more

than 100 points, ch robinson and ryder system, weaker than expected quarterly result from both of these transportation companies, that sent chills throughout the entire sector which is the bellwether for the broader economy. right now we have ch robinson down 14% and ryder system down seven and half percent. during this hour yesterday i hope you were with me that's when johnson & johnson stock was halted pending news and we told you what the news was, it was actually good news that the stock and been halted because there was no expected in the initial bunch of baby power that had tested positive none at all and 48 new test so no assessment. the stock reopened today and you can see right now, we wanted to check back because we know some of you are wondering j&j up two

and three quarters% to $132.17. general electric, we watched a massive selloff over the past year in ge indoor worst part in late summer. none of that seen this hour, the third-quarter earnings not only be expectations but ge raised its free cash clone guidance for the year same free castle would be positive in 2020. if we look at the stock, it did cross the 10-dollar mark line which is a far cry from back when it is $75 in the late 1990s, but it's a nice move of 10% of just below $10. were getting a barbie bounce with helping bring the joy back after the horse show. up 13 and two thirds% in a surprise pop and revenue for the 60-year-old iran as well as the toymakers new and of dolls based on b ts.

the chairs jumping 13 or half percent. a game on, look at the shooting higher by three and half percent, the videogame maker call of duty modern warfare reboots, breaking in more than $600 million in just the first three days of sales. that set a franchise record in the shares are at $55.85. let's broader the picture it's a nice day for most of the markets, charlie gasparino is here. >> is a reversal, they have been on 26. >> oh boy. >> hey. >> it's like getting $100 raise on your paycheck. >> i'll take it.

>> i guess it's nice the market is up but when's the last time we had three rate cuts in a row and no recession. >> do you know? >> i don't know. >> god for bid you do some research. you have a question but don't answer it. >> it does not happen. >> i'm not saying it's good -- i know our fans in middle america don't like this but i do talk to wall street because -- >> you talk to everybody. >> i don't talk to the gardener about garden secretary, the guys who understand the markets work on wall street, the best in the business. >> our viewers may not entirely understand everything that's why they're here back my point is they should listen to what's going on wall street and the

general consensus i spoke to traders and investors today. if a trade war -- we have an economic slowdown from ottawa doesn't mean we have a recession or going into one but we do have an economic slowdown. if this tree thing does not get settled, expect the fed to cut again. the problem as we are going into an economic slowdown with a trade war that does not get settled is very problematic particularly as 2020 comes around. the one problem that you have is when people wait this long, you get companies like we work in the fed really is playing with fire with these rate cuts. i don't care how much president trump gave him which he did, we have a situation right now that in order for investors to make money they go out from the

spectrum and finance like netflix. >> their borrowing money cheap so they get a lot of debt. >> they give elon musk 20 million passes even though some nice product, the numbers on tesla are funky and they allow adam neumann to do crazy stuff with we work and at some point there is a day of reckoning. and it will come. >> would it surprise you the last time we did see a trio -- >> somebody look this up. >> 1995 in 1998. >> right before -- >> interesting. it really tells you something that is coming down the pipe. and if they have a financial problem and we have a market

because their businesses after that don't make money and being able to borrow, if you had all at once can the fed react other than go to negative interest rates. it is a scary situation. i think powell made a mistake definitely by raising rates in december, there's no doubt about that, he did not see the impact of the trade war but he probably made a mistake by caving into trump after that. so much that he did. there is not a lot of room to fix the situation. >> do you think today was a mistake? >> i do. and based on the people i speak with who generally like lower rates, from a macroeconomic standpoint it doesn't leave the fed a lot of room to do much else other than -- by the way when the fed prints money is is

not printed, it conducts a morgaopenmarket operation and te severe steps that could change the currency at some point. there is not a lot of room. i don't care how much donald trump tweeted, he should've showed more backbone and he should've done what he did in december, give him some commentary. >> because a lot of viewers are saying give me a hook. [laughter] >> do not factor fantasy. >> i want the truth. >> people with money are in that skin of the game. >> one of the smartest economists who used to work at the fed and out of princeton, alan agreed to the that we should not have cut rates. thank you very much. >> pace university and he agrees with me.

[laughter] the closing bell, 15 minutes away, i need you to stay with us because were on a roll and i believe the s&p is at a record high, we need to see it up to a half points if indeed we close there. tim cook cooking up something special as apple gets ready to release its earnings "after the bell". what we will do is give you the exact things you need to look out for when "the claman countdown" comes right back. the dow is up 100. ♪ ♪ ♪ ♪ ♪ ♪ ♪

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>> 11 and a half minutes to go before the closing bell rings, this is it we are watching

another all-time record high for the s&p 500 which is up seven points, we need to see it up to a half point so we hit the record at the closing bell, the dow is up 95 and the nasdaq has been negative much of the session now up 27 points. by the way in a few minutes we have major third-quarter earnings brewing up coming right after the ball, number one investors in the world most chain starbucks which made its market in 1992, it raced its way just over a month ago are both buckling up at this hour. starbucks and lift ready to pull back the curtain on the respective third-quarter numbers, rising competition for both. they are both consumer driven. for the moment starbucks is flat, we have lift up by 1%, half a point. but the big one tech titan and apple making the first earnings report with 11 sales numbers included, were looking at again of a fraction,.

>> apple also consumer driven and the other stocks coming out, neither expectations not too high in eps will drop year-over-year and consumer dollars and 84 cents a share. almost exactly the same as laster. those are the expectations and the stock had an all-time high, three analyst have raised price targets on the stock, the market cap is back above 1 trillion, new air pots they have, apple tv plus is launching on friday, lots of good news rolling out of the company but expectations for bottom-line performance, not so great. >> thank you very much. we are watching it and are economic geniuses that we are toggling together are about to break down not only what the federal reserve and chairman powell's comments made for the market but also for your money

and one of the three people does not think the fed should have cut. you have to find out why, that is next. the dow was up 109-point g at fidelity you'll pay no commission for online u.s. equity trades.

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- with over a quarter of a million clients worldwide, we're one of the most dependable gold distributors in america. give us a call today to get started. >> the stock market is giving federal reserve chief term and powell and the fmo see companies that cut rates as standing ovation, the dow is up 116, s&p on track for an all-time record close, this is interesting, they made the decision to cut rate just hours after third-quarter gdp came out, it was an upside surprise, better-than-expected 1.9% growth versus expected 1.6 number. this is the third quarter gdp but then we also got the adp private jobs number, that was also an upside surprise. what was expected, certainly not

125,000, they were expecting 120,000. two great pieces of economic data. let's find out what we can bring from all of these pieces of data and news. were joined by the president aaron gibbs u.s. bank wealth management air cream and in morgan capital ceo mark. five minutes to go before the closing bell, s&p on target for all-time record. apple coming up, what do you think of this decision and the backdrop of a strong economy. >> i think the weakness we seen in the business sector they made it clear there trying to help that despite the consumer being strong and even though there were upside surprises there was still a slowdown from second quarter. i think this cut is completely rational. the one thing we should also look at is this market is being driven by the defense of stocks. healthcare is up almost 1% right now. the fact that were being driven

by defenses seems like a shift and not about a growth economy anymore. >> i was just going to ask you, what aaron brought up, can you trust a rally that is led by a very defensive sector and that would be the utilities, people rush to these women are concerned because they pay high dividends. what do you think? >> a lot of what is going on is month-end noise. there is a lot of information from the fed and we think the fed was backed, the market prices and as a certainty and a lot of this is being driven by other central banks, the fed has to be mindful of virtually every other central bank racing to cut rates obviously looking to depreciate their currency. we still think this economy globally speaking is not the best ever, we think it is still decent but is been weakening for

five or six quarters, our expectations should stabilize later this quarter as well in the early 2020, not a significant uplift t economic growth. were still buyers of economy liz: i said one of i three did to the feel the fed should cut rates today. that was mark. why not? >> well, look i think they shouldn't be cutting rates in falling into the pressure from the white house to join this race to the bottom as eric mentioned. i think the economic data is not strong at all. the idea that a year ago they told us we were going to have three to 5% economic growth. then a week ago they said it would be 1.6%. surprised at 1.9. that is a negative surprise. adp number is up but they revised last month down 50,000 jobs. that is negative too. all the economic data is really poor. i think -- liz: don't you cut rates when economic data is poor? >> no, they need to save their

bullets when it gets really ugly. they should have raised rates years ago when the economy was strong. they don't have enough ammunition. they are stuck in this box where all rates are hided to zero or negative. it is about currency devaluation at this point. liz: erin, let me go to you, it you do somewhat disagree with what mark had to say, you're making right question about defensive sectors taking the lead. just the other day technology took the lead. what is an investor doing right now? what should an investor being investing in. >> technology is one of the winners. one of the things a lot of tech stocks when we exclude the communications, your semis, those are actually, they're very volatile, not really growth anymore. your microsoft, those are nice, stable, ibms. so those companies i'm actually very comfortable with. so i am looking at just more of

a broad-based value. so, anything that you really don't see the super high valuations or super high ex-growth expectations but nice and steady and stable. that is what i'm looking for. liz: eric, you have 170 billion at u.s. growth management. what is your investor group there? what do client say to you? what are they most, the high net worth people most interested in being their money going into at this point? >> that is great question, liz. most of our clients are in the position thinking 10, 15, years. easy for us to sit back to say close your eyes everything will be okay but they're looking for clarity on the upcoming election cycle. they're looking for clarity what happens with trade talks. some of these things are obviously a little difficult to handicap. our bottom line view is this. there are great demographic plays long term. things like health care which has really been beaten down,

place to look at. [closing bell rings] technology has long term story. a place where we think you can make money as well. liz: we'll see if mark tends to be correct. i kind ever tend to agree with you, mark. thank you very much. second day in three days for s&p record. connell: all three major averages ending the day in the green after the fed decision, cutting interest rates by a quarter point. downplaying any expectations they will be raising rates anytime soon. the dow ending the day higher by 117, almost 118 points t was a volatile session. but at the end we traded up. good to be with you, i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." new record close for the s&p 500, its 15 of the year. nasdaq is hovering near record territory. we're waiting two high-stakes reports that could massively shake up the market one way or