we will ask jeff lacker. tom: izzie and over shooter -- is he an over shooter?us opinion? not a consensus opinion. it is not even the official policy, even though some in the markets think that is what the fed is trying to do. first they have to get the 2%, then they can worry about overshooting. thatlacker argues inflation is becoming a bigger danger than some others on the committee might think it is. we are starting to run out of slack in the economy. if you try to overshoot, you may go too far and it is a lot harder to stop and overshoot than it is to not do it in the first place. francine: i am looking for to be interview. there is also a danger of the dollar rallying. how much can the fed or how much does the fed want to cope with a strong dollar if we finally see the virgins playing out -- divergence playing out? michael: if you believe in a feedback loop, the fed can never raise rates because it will always have an impact in the markets. the judgment they have to make is how high will the dollar go and what effect will that actually have on the u.s. econ

early, jeff lacker said investors misread the fed intentions.as thatinterpretation the threshold we have for what it takes to get us to pause in the rate increase is that in december, we outlined and expected to see this year was fairly low. i think they set it too low. overestimate how likely we were to pause for the rest of the year. betty: as the fed sounds the alarm on imminent rate hike him our next guest says he is jumping risk and fleeing u.s. stocks are looking east to asia. joining us now from stockholm is hans peterson, global head of asset allocation at seb bank which is $96 billion under asset management. is it overblown to say you are fleeing u.s. stocks? >> that's putting it a bit aggressively. we are decreasing a little bit but we still hold u.s. stocks. we are moving toward europe and the little bit of asia. are you decreasing or equity holdings? the fed will hike the interest rates. secondly, margins are going a little that lower in the u.s.. in that european area it's quite high. it makes us less motivated to hold u.s. equities