joining us is torsten slok and dean baker. you say that volatility makes now the right time to raise rates. why? torsten: there are many things that go into the decision of when is the right time. but once they get going, they don't want to tighten financial conditions too much. that is why it may be a good time ironically to do it when markets are saying we don't really know if the economy is strong enough. but if the fed has the confidence, this could be the reason to go into september. david: do you think the timing is right? dean: it is an interesting argument. i would have to say that volatility makes it to my mind less likely. on the one hand, how does the market react we haven't seen a rate hike in eight years. what is the immediate reaction? second, what is the underlying state of the economy? the drop in the euro is going to worsen our trade deficit -- that doesn't look like a story where we need to have a rate hike. now, at some point, we will have one. is this a good time? it seems that it is pressing it. given the c

us, formerly with the international monetary fund. and torsten slok will join us. yellen,look at janet the central banker to the world. your terminal value is watch "bloomberg surveillance" this friday morning. ♪ tom: say what you will, ray dalio hit the ball out of the park a few days ago on the fed call. if you look at what janet yellen said yesterday, it is literally what mr. ray dalio framed for us a few days ago. thanks for your comments worldwide on our one hour with ray dalio. we have the morning must read right now. here is vonnie quinn. must-reade morning comes from a home, writing -- -- comes from mohamed el-erian, writing -- that is what i love about mohamed el-erian. how does a guy like that out of oxford know what a cul-de-sac is? he nails it. vonnie: essentially he is calling out the fed on his can -- on its communication strategy. hass saying that the fed been responsible for volatility suppression, and now it might be responsibility -- it might be responsible for being less honest. aims it is one of the key since the global crisis began in 2008. it's responsibility now -- isn't it the responsibility of national governments t