he. >> announcer: this isssightly busi report. with sue herera and bill griffeth. our economy is strong. growth is running at a healthy clip. the federal reserve hiked rateshe eighth time since 2015. what this means for the economy, the market and your wallet. new rules, most corporations don't want the government involved in their business. but on capitol hill todte big companies are pushing for more >oversight. one of a kind, how the first and only female ceo of a ublicly traded home builder is trying to close the depender gap. epose stories and more on nightly businesst for wednesday we want 26th. good evening, everyone i'm

contessa brewer in tonight for sue herera and bill griffeth. we begin with an important aspect of the american economy. interest rates. today the feder reser lifted the benchmark rate for the third time this career. the t 8the since 2015. chairman jerome powell called theon economy s and says he is not concerned about inflation. the upbeat outlook led the central bank to increase the forecast for growth this year andsf next. eef liesman is in washington with moren the decision. >> reporter: the federal reserve raising interest rates by a quarr percentage point as expected to a new range of 2 to ng another ut signa rate hike is coming december. fed chairman powell was clear why they were taking theoue of action. >> you're economy is strong. growth is running at a healthy clib. unemployment is low. the number of people working is rising steadid. wages are up.

inflation is low andl stable. f these are very good signs. >> reporter: amid expectations for the good times to continue fed officials on average forecast the rates raise another 75 basis points next year and finish above 3%. but powell said there areouisks there to raising rates and risks to not raising rates. >> if we move too quickly we can snuff out a recovery unnecessarily. and inflation falls short o the 2% target. or if we move too slowly we have an economy that overheats. that's happened through history. we don't see that w. but we are always trying to navigate between the two shoals. and think that gradually raising interest rates is the way that weind of tak both of those risks seriously. >> reporter: powell didn't seem overly concerned about the high level of the stock market or lots of debt on the books of corporations. but he did say it represented a risk. he also said that tariffs represent a risk but hadn't shone upn the economic data.

powell says they're good times and by nudging rates higher and stopping at a low helpf he can let the good times roll a little bit longer. for nightly businessreport,'m steve liesman in washington. interest rates influence everything from theconomy to the financial markets. so what could the path of rate hikes mn for your investments? david leib wits is a global market strategist at jp morgan when we talk about the rate hike what will we expect to be the impact on the overall economy. >> think that the fed, to chairman powell's point, is trying to move gradually trying to telegraph what they are ing. with eight rate hikes since 20153 we have a seen a slowed 199auto and hom spending. the rates are taking hold on certain sectors of the u.s. economy. growth has remained relatively robust given all the fiscal stimulus pumped into the but as rates move higher you

could see the more interest rate sensitive sectors like housing and autos come under pressure. >> we saw that utilities. are we expecng to see that markets, stocks with equities e here that peoight be invested in in the 401(k) >> i think that equities it's important to draw a line between the stocks that benefit from higher interest rates and stocks coming under pressure from the higher interest rates. a lot of investors have used things like utility stocks, consumer stap many stocks, telecom stocks as a way o producing more income in the of folioses over the cours the current expansion give than interest rates have been low the majority of inconomic growth period. but you know if you think about financials, technology, energy, they do fairly well whe interest rates rice. we think that investors probably need to be moreth selective a current juncture. we certainly expect the high dividend paying sectorsre to in under pressure. but that doesn't mean there are no opportunities that investors can take advanta of.

>> and what's the impact of these rate hikes on treasurs? we saw the yield moving lower today. >> obviously when interest rates rise bond prices fall and a lot of investors i've been speaking with have noted they're seeing fundsve returns from bon for the first time in a number of years. you know, i think theur tre yields coming down today were a flkds of the market interpretinf the comments as being a little bit softer, more dovish than they expected. ing frankly we think the path of ncleast resis for interest rates is higher. the fed will hike agn in december. in our view we think two or three times nextier. that should lead interest rates gr higher the next 18 months. >> david, good to see you, thank you. >> thanks for having me. interest rates also influence the cost of borrowing, the return and savings on pocketbook overall. economic by a senior analyst at bank rate.com.

let's dive into the ways we might see this. when itt comes to w a lot of people across the nation have auto loans. will we see higher rates translating to what we pay per month for auto >> if you have an auto loan that is not likely to change.ki we are t about auto loans for future ctomers our point of living at bank rate is to remind people to shop aund. that holds true across the borrowing universe. while there may be an average rate of let's say% r auto loans and likely going higher, shoppers can do bette t thant and auto makers continue to add inincentivesos including low financing. >> what about mortgages? will you see impact on mortgages. >> really more so for adjustable rates. those with fixed rates mortgages, those are fixed by definition. so for those who still coming into the market and will expect to be in their homes in future years, a number of years,en weally recommend that they look at fixed rate

mortgages and for those who are ins going to reset, they want to look at how much longer they'll be in their home a possibly refinance into a fixed rate mortgage. >> all right. and then finally i wanted to ask you in terms of the impact on what we're paying, what about credit card debt? a lot of americans carry some debt from month-to-month. will you see of impactthere? >> yeah, absolutely. i tend to underscore this a mor ththing else when it comes to borrowing because we crossed over the trillion dollar level in terms of credit card debt. since t fed beg tightening raising the benchmark rate by 2% since the beginning in 2015 we have seen the average for credit cards go up from 15% level into the 17% level. as we have already established here, we do look for many as four rate hikes over the coming years. that means that we might be two third of the way through the rate headaches. at bank right rate we advice people to pay down or pay off edit card debt and continue to

save. >> if that's the advice there, on ways tha you avoid some of pain that might come withrahe hike. do you have advice for people on how to take advantage of the rate hike. >> i like to say that savers were the often forgotten casualties of the low interest rate environment which was essentially the medicine t reserve had to employ in the midst of a financial crisis. slowly but shurg we see savings rates raze. but again it's amazing- this demonstrated on our site how much variance we see if you just shop around. while we might say that f example tverage on a one-year cd is below 1%. you canan get substantially higher than that by shopping, same for 2-year c devine five-year l.s as w >> thanks for the advice. >> great to be with you thank you. >> those infla fon commentsm the fed chief that set off a chain of events onre wall . bond yields turned lowered, pressuring bank stocks and because of the financial sector

which is of course critical, the broader market fell, gave up earlier gains. the dow jonesl industr average dropped 106 points to 26385. the nasdaq was off 17 opinion. and the&p00 was down 9. in a speech to the united nations security council,um president called out china, not for its trade tactics but for tryg t influence the upcoming midterm elections. >> regrettably we found that china has been attempting to interfere in our coming 2018 election. coming up in november. against my administration. they do not want me or us to w because i am the first president ever to challenge china on trade. and we are winning on trade. we are winning at every level. we don't want them to meddle or

interfere in our upcomingec on. >> experts say those comments open up a new front inp' tr administration posture towards the world's second largeec onomy. well we want to take time to look at the upgrades and downgrades. ibm was upgraded to buy from utral at ubs. the analyst sites strong deman for services, artificial intelligence and cloud offerings. the pce target is $180. the stock rose more than 1% to 151.61. go pro's rates listed to outperform from perform at oppenheimerwith, the analyst calling it compelling. the price target $9. the sck gained4%. to 6.92. active vision. blizzard's price target was raised to $88 at piper jaffrey. the analyst ss the game call of duty black ops 4 could help boost earnings. the firm maintains the

overweight rating shares gained 1% to 81.57. and still ahead, a new pho scam and a call that no parent ever expects to get. san francisco officials have temporarily should dow the city's new $2 billion transit center after a crack was found in aea steel engineers are now inspecting the bem. the new transit hub opened a month ago. nd it's expected to km date

100,000 passengers each weekday. the house of representatives tonight passed an $850 spending bill, the measure funds the defense department and includes a plan to avoid a government shutdown sunday but the presiden happens to agreend sign the pest. executives from major tech companies we back on capitol hill, testifying on consumer privacy. today they were pushing lawmakers to establish federal regulations. julia boorstai ex. >> reporter: executives from atennessee. amazon, apple, goog. twitter and charter communications taking the stand before theenate commerce committee to answer question base how they protect consumer data in the most effective way to craon regula >> there is a strong desire by both republicans and democrats and bytr both ind and public interest groups to work in good faith to reach aonsensus on a national consumer data privacy law that will help consume promote innovation, reward organizations with little to hide and force shady

practitioners to clean up their act. >> we do not sell personal information. we anowledge we made mistakes in the past from which we learned and improved the privacy program. erstand the foundation of our business is trust. >> with the general skenss that regulation is inevitable, the question is what the laws will look like.es and compa would prefer to have federal legislation becaus thnsistency is easier to navigate than a patchwork of state laws. >> the concern many tech giants testifying this summer privacyia passed a new law considered comprehensive and stringent. and could hinderhe growth. >> now what we are seeing is that the stateshe while federal government is discussing it and not could doing anything th states aremoving, starting with california. now they are talking about it. the federal government is under pressure now to come up with a otherwise you have a patchwork of laws wch will be unworkable. >> with google saying complying with european privacy regulation is a tremendous challenge, warning that similar laws h

would hurt start-ups. the question is what relilations look. >> companies love to complaint about regulation. and yes it's a burden. but i thi b theger problem for companies is uncertainty. i think that, you know, if they khave a regulatory framew they can work within and help shape which is why you see so many big companies say w in favor of some sort of regulatory framework because thewant to part of the rule making progress. >> with questioning focusing on the potential for mandatory notification of data breeches within a certain time period and question base whether consumer shouldave to affirmatively opt in to have the data used and shared, congresss trying to figure out what kind of rules would o could protect consumers without behind erpg innovation and growth. for nightly business report i'm julia boorstin in los angeles. car max topped expectations and that's where we begin tonight'sarket focus. the car retailer said new digital initiatives helped drive increase in same store sales. and that led to an overall

earnings beat. e company points to results lifted by higher selling prices for use vehicles. shared finished down 1%o 74.66. papa john's ousted founder is not walking away from the chain with a fight. he has contacted a number of y back equity firms to the restaurant chain he left earlier this year. several private equity firms reportedly have rejected schnatter's proposal to partner on a bid and shares. papa john's pop 8% t50.14. online polling company survey monk y made the trading debut after pricing shares above the expec range. the initial public offering put survey monkey's valuet nearly $1.5 billion. and while the company isn't profitable yet, the ceo says it's making progress. >> on a net income basis cap we are still unprofitable. we are bringing on world class shareholders who understand the business model. h this is ahly cash generating cash business.

in the last 919 months we had marj.venue we had vye hibl and cash generation with the business. so we see the opportunity to grow and continue to drive free cash margins. and over time you will see n income. >> shares soared 43% in their first day of trading, closing at $17.24. after the bell bed bath and beyond reported a surprise decline in same store sales and mi earnings expectations. the retailer cut the sales outl ak for the year said profits will come in at the low end of previous guidance. as you might expects shares neshlly fell in after hours. they finished the regular session dow a fraction to 18.81. a growing international scheme is leaving a trail of wealth victims across the country. criminals can callg families and claim they are holding loved ones for ran some. andrea day investigates. >> what -- tell me what you

need. i know tell me. >> this is an extortion call the man is desperate to save his ve son's >> how real was it for you? >> how real was it? h it was someo my son. someone had my son who i had heard crying and screaming in the background. covering his mouth. with a gun to him. >> 30 minutes heay s of complete terror. jamie heath had no idea he was bein conned. but this is no ordinary hoax. an kprrgs extoron scheme so paralyzing the feds can call it a violent crime. fbi special eighth eric. >> the victims are wealthy, ark terkts, doctors, lawyers, professional people, get the phone call, make the payment. >> heath is a music producer and lives in los investigators say a recent target for the extortionist.

s he was inside had his home when he got the call. >> i hear them say they're going to hurt me they're going to shoot me. and then whi he is talking they are going to shoot, and i hear someone cover his mouth. and someone grabs the phone and says is this nick's dad listen me closely how you upon to to in the next 20 seconds determines whether you s your son again. >> you thought it was your son. >> it wasn't thking. it was my son. >> he rush to the bank to withdraw cash. >> i parked in that driveway. i r out frantically down the street, ran into the bank through the glass doors. >>ence inside got a text from his wife. >> that said nack is se at school. >> that's when he finally called his son. >> but then. >> according to the fbi, versions of the scheme have been around for about a decade. ent yearssn't until r at agents made a startling discovery. while pouring through victim's

phone records. >> the agent says they found calls made to people across beverly hills were coming in from one place. >> our investigation has revealed for the most part these phone calls are being made by prisoners in foreign countries. mostly prisoners in >>mexico. o you're telling me that mexican prison erps have this terrifying scheme down to a science? >> yes, yes we are talki about thousands of phone calls over the last few years. >> in is it undercover video aired by the mexican broadcast network images. it was taken inside a pson in mexico city. the peoplenou see the phone here are inmates. accoing to investigators casually making cold calls, right out in the open. >> so the prisoners areeally hoping to strike it rich with the calls? >> absolutely. thenthole pf in for enemy

ssak toe money, make money fast, make much money as possible. l> yeah. >> the c to jamie heath also from mexico. >> do you think you'llr e forget that experience? >> no. no, because for me those 30 minutes my son was teen. >> forightly business report, andrea day. we reached out to different agencies in mexico for weeks with no response. the mexican embassy told us u.s. norts have not raised the during meeting was law enforcement. but the fbi told us they've been working with mexican officials to come up with a plan to shut down this scheme. and the fbi says victims end up wiring money to mexico or leaving it in the united states to picked up. the bottom line here if you get one othe calls they say you should just hang up. coming up, women in construction. there aren't many of them. but one rose all the way to the

top. well a look at what to watch tomorrow. supreme court nominee brett kavanaugh will testify before the senate judiciaendota o committee about allegations of sexual misconduct. kavanaugh's accuser has said she will testify. the revised figure for second quarter gdp growth is due out. and we'll get a look at durable goods orders in august. that's what to watch on thursday. new home sales bounced back in august. purchases of newly built homes rose 3.5%, more than expected. and fol tws straight monthly

declines. the reason weakness is blamed on rising home prices and higher borrowing costs which have tr ouped wage gains. apartment rents are also heading higher, reversing a year long trends. rents are up 3% and the occupancy rate is at almost 96%. insiding demand is coming in part fl a shorte ofomes for sale, leading to higher home prices and that in turnedas push people into the rental market. reducing demand. you know, homes building an overwhelmingly male dominated business from the framers on the job site to t c suite. but one ceo breaks the moldot just for herself but for one of the nation's largest publicly trudied home nlders. diana olick is in scott's dale, arizona. >> arizona bed taylor morrison homes is the seventh largest publicly traded home builder by revenue.

and the ceo sheryl palmer is the first and only one of her kind in tho ranks, a female ceo. that this wastain an intentional path for me. but it's one that felt right fob ously -- i've been in this industry for 20 years. color blind, i'm depender blind. they might notice i'm the single female at the table. but f mehis is just what i do. all the old jokes about there is no line tohe ladies -- those are all true. but it -- doesn't change me. i always said in business, the day i have to change who i am is the day i'll stop. >> palmer started in home building first at poulty homes then taylor morrison. they she took the company public in 2012. >> you're at the table. >> um-hum. >>he other publicly traded ceos have you you ever felt minimized and if so how. >> for sure. early days i think if i were to share a view i think it almost was gloss over.

i had to continue and i knew that -- i knew that my position wsws my v on the business were right. i would sayth tgroup of ceos had to get to know me. t it's an equal playing field it too time thanks. >> and overtime nearly a dozen years as ceo palmer bui both her reputation as well as an uncharacteristically female staff given the business. >> do you promote women more as a leader of this company? or do they just come to you because of what the company is? >> so i think we promote certain skills required. and we have a culture that i think attracts certain types of people around personal development. and you know, the passion and the higher purposef what we as a company stand for. we actually don't have any affinity programs for females. now, what i would hear from my people svices department is that having me in this seat does attract other women. hope.k it gives

mearly 50% of our managers that first level mana, is female. i think it's about 49.2%. >> that's incredibly rare. >> that's incredibly rare. >> given t product, houses, palmer sees it asonust plain cosense. >> i will tell you i think it makes us a better company, because to get the diversity of thinking at our table on a corporate lev d at theision table it's really critical. think about who the buyers are today out buying houses. and to miss the opportunity to have the female spot and kind of lens and voice is shamable. >> her board is female heavy but she admits to a glaring problem one she calls a tragedy. >> women just don't tend to be there for other women. and i don't know if that's a result of there are so few slots at the top that people feel like they he to compete. i'm very hopeful that ashe

dustry develops, as we see more women in the space, that t womee the opportunity to embrace the need andelp oth women as compared to push them down. >> for nightly business report i'm diana olick in scott's dale, arizona. >> before we go let's take a look at the day on walltrt. the do you fell 106 points. the nasdaq off 17 and the snch slipped 9. that's nightly business report foronht. i'm contessa brewer. thank you for watching. have great night, everyone. we'll see you back here tomorrow.

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