u.s. dollar has fallen slightly off of the federal reserve decided to keep interest rates unchanged the u.s. central bank made the announcement following a two day policy meeting the decision means the lending rate will remain between one point five and one point seven five percent for now but analysts say at least two hikes are likely to be announced before the end of the year well our financial correspondent is with us from new york now yes the fed not changing a whole lot that saying inflation was moving our words to tell us more about the move when we can concretely expect it. well most investors on wall street believe that the next rate increases coming at the next fed meeting in june and that the federal reserve might pause in the july august meeting and then once again might increase rates another time in september and then we will have to wait and see if there might be a third increase shortly before the year comes to an end so that's at least the projection for now we did not see a lot of surprises in this fed meeting the federal reserve did acknowledge that inflation is on the ris

u.s. federal reserve bank bank of new york still has the ability to crush them at a moment's notice if we so choose their basically their equally powered the world's largest debtor the world's largest creditor they are equally powered they're equally powerful and that is a great huge fight that is the fight of the next few decades what is not a great power which is no longer a great power is the united kingdom versus germany fighting the euro european union versus trying to come up with the brakes a deal i have to headlines here this is from bloomberg and they often to this i actually printed another article but they change the headline at all the time but boris johnson warns may to get on with it and deliver brags that so he's warning that she has to get on with it he wants to become the new prime minister which probably makes more sense of a clown and charge like trees amaze us ineffective you might as well have an ineffective clown because we have a clown here italy has clowns everybody has clowns this is new policy but the u.k. has admitted that they're going to have to pay a huge div

u.s. federal reserve bank bank of new york still has the ability to crush them at a moment's notice if we so choose their basically their equally powered the world's largest debtor the world's largest creditor they are equally powered they're equally powerful and that is a great huge fight that is to fight the next few decades what is not a great power which is no longer a great power is the united kingdom versus germany fighting the euro european union versus trying to come up with the brakes a deal i have to headlines here this is from bloomberg and they often to this i actually printed another article but they change the headline at all the time but boris johnson warns may to get on with it and deliver brags that so he's warning that she has to get on with it he wants to become the new prime minister which probably makes more sense of a clown and charge like trees amaze us ineffective you might as well have an ineffective clown because we have a clown here italy has clowns everybody has clowns this is new policy but the u.k. has admitted that they're going to have to pay a huge divorce

u.s. federal reserve bank bank of new york still has the ability to crush them at a moment's notice if we so choose their basically their equally powered the world's largest debtor the world's largest creditor they are equally powered they're equally powerful and that is a great huge fight that is the fight of the next few decades what is not a great power which is no longer a great power is the united kingdom versus germany fighting the euro european union versus trying to come up with the brakes a deal i have to headlines here this is from bloomberg and they often to this i actually printed another article but they change the headline at all the time but boris johnson warns may to get on with it and deliver brags that so he's warning that she has to get on with it he wants to become the new prime minister which probably makes more sense of a clown and charge like treece amaze us ineffective we might as well have an ineffective clown because we have a clown here italy has clowns everybody has clowns this is new policy but the u.k. has admitted that they're going to have to pay a huge div

u.s. federal reserve bank bank of new york still has the ability to crush them at a moment's notice if we so choose their basically their equally powered the world's largest debtor the world's largest creditor they are equally powered they're equally powerful and that is a great huge fight that is the fight of the next few decades what is not a great power which is no longer a great power is the united kingdom versus germany fighting the euro european union versus trying to come up with the brakes a deal i have to headlines here this is from bloomberg and they often to this i actually printed another article but they change the headline at all the time but boris johnson warns may to get on with it and deliver brags that so he's warning that she has to get on with it he wants to become the new prime minister which probably makes more sense of a clown and charge like theresa may is this ineffective you might as well have an ineffective clown because we have a clown here italy has clowns everybody has clowns this is new policy but. the u.k. has admitted that they're going to have to pay a hu

u.s. federal reserve has designated the bank's american business to be in troubled condition, downgrade beingy stock down 7%. >> thank you, seema. as we've been talking about all morning, the trump administration hitting canada, mexico and the eu with new steel and aluminum tariffs that threat of a trade war taking center stage here at code >> we already have a little bit of a preview when trump was on the campaign trail he talked about being unpredictable. we're seeing this on again, off again unpredictability a week ago they came out after the summit meeting to say that the trade war is on hold but now there's tariffs on $15 billion goods. i think we are -- in a way, we kind of predicted unpredictability there's always going to be volatility we're focused on the long term. >> with us, aventure partner and capital managing partner great to have both of you here hans, how does this unpredictability that joe tsai talked about effects investors trying to do business in china or compete with chinese start-ups? >> if you look at the landscape, apple, starbucks, gm have done very well in china mor

u.s. federal reserve raised interest rates, banks were able to make more money lending that a higher rateinterest than what they have paid for the cost of their funds which is -- that spread has been growing. when there is a flight equality, interest rates drop and people anticipate the opposite effect. that is one impact on bank. the bigger impact and the one you should really be concerned about is whether your banks have exposure to italian ass that need to be marked down. i would say most major money center banks don't have that much exposure or have manageable exposure. yvonne: rip quickly, what does this mean for the ecb and the fed? does this mean this rate hike passes, it is pretty much in question now? george: i think the fed might be more cautious, but i don't anticipate a major change in its direction. which is generally raising interest rates. 2016.pened six time since they are engaging in monthly rounds of quantitative tightening. this creates a new incentive for the fed to more rapidly unwind its balance sheet because there is so much demand for treasuries and for the risks o

u.s. federal reserve in terms of trying more normalized conditions in the credit markets and financial landscapeery difficult for our fed, going very slow with the huge balance sheet not to make too many disruptions and also playing chicken with inflation. but for the ecb, think about the timing you have italy, a very indebted country, the ramifications of leftover greece, trying to become a reform academy but it will run into the same timing schedule as mario dragi trying to normalize the reverberations could be very much contagious to other markets. the central bank was able to do and implement its strategy what it cannot do and implement is decide how markets react as politics, patriotism and qt may all hit. jon fortt, back to you. >> rick santelli, thank you. >>> cnbc will unveil our list of fast-growing startups to watch julia boorstin joins us with a look at how those on last year's list are doing julia? >> our disrupter 50 list over the past five years and of the five from last year's list, four are in the green here is a look at the performance. blue apron is the only one that's had a ro

u.s. federal reserve board is going to raise rates this year. i think this is decisive that the u.s.ward. there are indications that the retail sector is picking up. and there are fleeting signs the economy could start to pass through inflation. we are always expecting that. i look over to europe and the rest of the globe, we are not sing those growth metrics we had expected at the beginning of the year. global central banks will remain on hold for the foreseeable future, at least until the economic data index picks up. the u.s.probability, dollar will hold its bid through most of 2018. ramy: in terms of strength, how far do you think we will get there? and, you say to the end of 2018, budget the issue of the deficit is booming here in the u.s., talk to me about that as well. we look at short-term and long-term metrics, if we look at the long-term, the dollar looks like it could come off of the boil. deficits andn political risks we are facing now. if we start to see an uptick in global economies, especially europe, which we are seeing the data bottom out somewhat, we have surprises

u.s. federal institutions came to light according to the wall street journal the downgrading actually took place a year ago first the federal reserve labeled the banks u.s. businesses troubled this in turn causing the u.s. federal deposit insurance corporation to watch a bank on its list of problem banks those with weaknesses in danger during their financial viability the revelation comes amidst the bank's restructuring efforts. a corruption scandal is rocking kenya twenty four of the country's highest officials are accused of misappropriating funds with seventy million euros and this court proceedings unfold more and don't details are coming to light and people as taking to the streets in an angry response. it's mostly the young people in kenya who are angry kenyan police have arrested the head of the government youth organization with legibly stole the money the funds were slated for financing education and training programs an important project in a country where every fifth young person is unemployed many here feel that corruption is stealing their future and with their chances for better education work and money think of it we

u.s. dollar falling slightly after the federal reserve decided to keep those rates unchanged. the u.s.tral bank made the announcement following a two-day policy meeting. it means the lending rate will remain between 1.5% and 1.75% for now. at least two hikes are likely to be announced before the end of the year. our financial correspondent jens korte is with us from new york now. jens, the fed not changing a lot there, saying inflation was moving upward. tell us more about the move and when we can concretely expect it. jens: well, most investors on wall street believe that the next rate increase is coming at the next fed meeting in june, and that the federal reserve might pause in the august meeting than a grand -- again increase in september, then we would have to wait to see if there would be a third increase shortly before the year comes to an end. that is at least the projection for now. we did not see a lot of the prices in this fed meeting. the federal reserve did acknowledge inflation is on the rise, that we have seen decent economic growth here in the u.s. but the market actual

u.s. dollar for slightly off the federal reserve decided to keep those rates unchanged the u.s. central bank made the announcement following a two day policy meeting the decision means that the lending rate will remain between one point five and one point seven five percent for now but analysts say at least two hikes are likely to be announced before the end of the year. while our financial correspondent is with us from new york now yeah the fed not changing a whole lot they're saying inflation was moving upward says to tell us more about the move when we can concretely expect it. well most investors on wall street believe that the next rate increases coming at the next fed meeting in june and that the federal reserve might pause in the july august meeting and then once again might increase rates another time in september and then we will have to wait and see if there might be a third increase shortly before the year comes to an end so that's at least the projection for now we did not see a lot of surprises in this fed meeting the federal reserve did acknowledge that inflation i

federal reserve the u.s. dollar with the china of those taking them apart the swiss system built off the from the united states now the united states is even weaponized the swiss system against russia and the other country that's going away russia china are building their own swiss system the you know we talked about five years ago max are way ahead of the curve of the petro you in i mean i've said years ago we're talking about the china movie no oil in to remain be the next phases the remain b. to become a global currency that's what they're moving fast on that trying to move all the oil the shanghai futures oil futures exchange open you know late last year so as we see more oil contracts go into renminbi remain be international trade get settled more and more in order to be really be will eventually challenge the dollar so to toe and then all of a sudden it won't be such a christian game people are going to have to are going to demand real assets for their money right now that would imply a rail assets for

federal reserve the u.s. dollar with the china though taking that apart the swiss system built off the from the united states now the united states is even weaponized the swiss system against russia and the other countries that's going away russia china are building their own swiss system the you know we talked about five years ago max are way ahead of the curve of the petro union i mean i've said years ago we're talking about the china moving toil in to remain be the next phases the remain b. to become a global currency that's what they're moving fast on that trying to move all the oil the shanghai futures oil futures exchange opened you know late last year so as we see more oil contracts go into renminbi remain be international trade gets settled more and more in order to be really be will eventually challenge the dollar go to toe and then all of a sudden it won't be such a pristine game people are going to have to are going to demand real assets for their money right so that would imply a rail assets for t

u.s. dollar you know the federal reserve central banking in general system in and he's coming to get going from that exact. same spot so we we have a lot of similarities in that regard and he was so early as well you know again it's you have to respect that because as you know a lot of gold bugs do still you know they still their head in the sand like ostriches refusing to even consider it because it has a place in a post currency world so yeah it was great to meet him great to meet all of them right now it is a match of the top event the series called the road to twenty twenty five and all i want to talk about it on a holiday over for another segment got about a minute left here but let's start talking about the road to twenty twenty five so first of all set it up for us what is the series that you've created over there i think it's probably a link from there i had to get a little bit of a set up care actually so basically i'm talking about how the next you know let's say six and a half years are going to be a period where you're going to see more geopolitical transformations and how the

u.s. dollar you know the federal reserve central banking in general system in and he's coming to get going from that exact. same spot so we we have a lot of similarities in that regard and he was so early as well you know again it's you have to respect that because as you know a lot of gold bugs do still you know they still their head in the sand like ostriches refusing to even consider it because it has a place in a post currency world so yeah it was great to meet him great to meet all of them right now it is a match of the top event the series called the road to twenty twenty five and i want to talk about it on a holiday over for another segment got about a minute left here but let's start talking about the road to twenty twenty five so first of all set it up for us what is the series that you've created over there i think is probably linked from zero head to give us a little bit of a set up your absolutely so big basically i'm talking about how the next you know let's say six and a half years are going to be a period where you going to see more geopolitical transformations and how the w

u.s. has been put on a federal reserve list of problem banks. to a group of trouble lenders insurance regulator. they are basically saying that the bank has such bad weaknesses in the u.s. that they are serious enough to endanger the financial viability of the country. no wonder the stock continues to tank. >> yes. the bank relocating away from wall street to a smaller midtown location that recently, the new reiterating the importance him -- the u.s. portion of the bank. about 14%.ow this is bloomberg. ♪ vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn. >> live from bloomberg's world -- european headquarters, i am caroline hyde. let's get you a check in with the first word news. here's more from new york, kaylee? >> the u.s. is going ahead with aluminum. there will be a 25% tariffs and a 10% tariff on aluminum port. preserve help america's manufacturing base. president trump has denied filing -- in a tweet, the president said in a quote that the corrupt mainstream media loves to push the narrative but they know it is

u.s. lower after the federal reserve said inflation is close target without indicating any need to waiverrom its path of gradually tightening monetary policy. the dollar declined. joining us now is mark cudmore. target without indicating any need to waiver frombloomberg an. we were, you would expect the fed to be more hawkish. isn't this a fed that has said in the past it is willing to let inflation run hot? mark: overall, the statement is balanced. the fact that they referred to symmetrix did imply they would leave it run hot. that is why markets reacted as if this was a dovish statement. there was a buy up for equities in reaction but that changed later on. a meh statement. he has reinforced the market that the fed put is still in place and that is why investors are a little nervous and why asian equities traded lower. people will be worried there is major weakness in equity markets, will the fed provide support or not? guy: has -- how has asia reacted? the dollar is trading softer and the rand has been well bid. is there anything we can take away from the fx narrative? mark: first of a

u.s. corporate history. cheryl: well, that apple move could support the dow after the index. the glasses yesterday. down 64 points yesterday. gerri: investors waiting for a federal reserve event later today and tesla earnings "after the bell." the u.s. stock market futures looking higher. the dow jones industrial average of 16, s&p f4, nasdaq up 24. cheryl: all about apple. a rally in technology stocks, helping open higher. the dax up more than 1% right now. gerri: amazing. hong kong and south korea the biggest losers they are. all four indexes in the red. cheryl: and with facebook under fire for privacy. would you trust them with the details of your love life? "fbn:am" starts right now. ♪ gerri: and it is 5:01 a.m. in new york then went taken them a second. good morning i'm gerri willis in for lauren simonetti. cheryl: good morning. i'm cheryl casone. i'm going to say no, i'm not going to trust my dating life to facebook. gerri: from cambridge analytic to take a nap spirit trying to a great story later on. apple looking at the stock right now almost 3% heading higher after the latest earnings and revenue crush the estimates. apple boosting it dividend and stock buyback

u.s. economy. well it's not just that oil prices are rising buzz other commodity prices as well and that actually could eventually lead to more inflation more inflation my to mean that the federal reserve has increased interest rates even more and all of that has. worked out a lot for the u.s. economy if we think about high commodity prices that is a problem for u.s. businesses for industrial companies for airlines who have to pay more for their fuel but also consumers have to pay more when they fill up their tank so there could be some negative implications with prices on the rise and then also what we did see is the possibility of higher interest rates was a drag on all the real estate companies here in the u.s. and in other news in the end you've got well disney putting out some fairy tale numbers a fairy tale reaction on the markets. well not quite but that's probably because a deal in build a multi-billion dollar deal that walt disney was banking on buying fox entertainment is in jeopardy because there was also another company comcast trying to buy fox but overall the numbers were much better than x. expected and mostly because of the movie business while disney made. great moves

they're not tightening >> with that, as the federal reserve tightens, the u.s. dollar will strengthen >> as it has >> if you're a u.s.-based investor, then that is actually a tailwind for returns if you're overseas, that's a bit of a headwind. >> don't be overly optimistic but stocks should rise a bit from here. you're still going to make more in stocks than bonds this year is that a fair summation >> 100%. you did great. >> thanks. am i invited back on the show. >> you're invited back >> thanks, chad. i look forward to being a guest again. >> the financial times reporting that comcast likely pending offer for 21st century fox could include a 2$2.5 billion breakup fee. matt, put that into perspective. 2$2.5 billion that's a lot >> it's a lot, but it's the same as disney is offering. there's a rival bid there disney which fox has recommended. comcast is trying to crash the party. it has its own all-cash bid it's working on it will probably land sometime next week when we know the outcome of the time warner/at&t merger co comcast bid in november, was rebuffed by f

u.s. model to a now european centric model. >> we, you know, as -- in those discussions the federal reserve has been a voice for the so-called building block approach to capital regulation that is -- you know, that has been supported through the u.s. processes and we will certainly continue to do that. >> but in regard to trying to preserve our state-based model here, what's your view as you negotiate with the iais? >> we certainly -- we both wouldn't and couldn't just given the nature of those bodies do anything that would kind of affect the federal distribution of the -- federal with a small "f" distribution of insurance regulation in this country. >> some of us might disagree with what you can actually do through international negotiation and agreements, but let's leave that aside and hopefully we can work together further on this issue. i want to move, and you've had this issue brought up a couple of times by the chairman and by mr. huizenga in regard to board management, and the federal reserve pressuring the boards to fire certain members. are you aware of that actually happening? bec

. ♪ scarlet: the federal reserve says the u.s. grew moderately.t indicates this remains firmly on track. with insight is matt. atot of data released today gp. you are looking to that report and breaking it apart. there we go. talk us through it. >> this is really the most interesting thing today. was really due to a noisy inventories component that flaunt around a lot. upward tos show business investment and within the software investment in particular, a major quarter. the blue line shows investment in research and development as a share of gdp. you can see it just missed that 2016 record high. it is on is that a record. you want to be in an economy where we are dissipating a pickup and going forward, this is the kind of thing that helps support that. >> does it vindicate the white back?in pushing is a good question whether it had much of a causal effect here. really with a tax cut did his pulse lowered investment that might have already been planned. it is kind of unclear how much has been planned. it is something you might expect to see. >> it

u.s. dollar is declining. the federal reserve is basically destroying liquidity. they are shrinking their balance sheet. you are basically destroying the money that you have created. at the same time, the united states deficits are not rising in many considerable way. the result is that it is starting to contract. point number two is that real stress between u.s. treasuries and german boons are pretty much at the highest levels they have ever been. the third point to remember, negative positioning against u.s. dollar right now is pretty high. some of it is getting reversed but it is pretty high. you can see how all of that, whether it is supplied u.s. dollar, positioning, how it all can reverse very quickly. longer-term, what supports u.s. dollar as a global currency. i think all this discussion about euro, yen, ruble is nonsense. u.s. dollar is the global currency. it will remain a global currency. that means every time the u.s. dollar goes up, you have a problem somewhere. u.s. might be ok but everything else will not. haidi: the problem is created when it comes

appreciate the opportunity to testify on the federal reserve's regulation and supervision of financial institutions. the federal reserve along with the other u.s. banking agencies has made substantial progress in building stronger regular industry and supervisory programs since the financial crisis, especially with respect to the largest and most systemic and important firms. these improvements have helped to build a more resilient financial system, one that's well-positioned to provide american consumers, businesses and communities access to the credit they need, even under challenging economic conditions. at the same time, we're mindful that just as there is a strong public interest in the safety and soundness of the financial system, there is a strong public interest in the efficiency of the financial system. our financial sector is the critical mechanism for directing the flow of savings and investment in our economy in ways that support economic growth and economic growth in turn is the fundamental pre-condition for the continuing improvement in the living standards of all of our citizens that has been one of the outstanding achievements

u.s. business which the federal reserve is already saying remain troubled.uzzword for a lot of people. neil: like, whoa, whoa, what is going on here? kristina partsinevelos is looking at what whoa, whoa, what is going on here. what is going on? reporter: united states u.s. watchdog, the bank watchdog putting it on its list of problem banks. this is the deutsche bank, the u.s. arm in the company. the stock hit a lowdown 8 1/2%. now it is down almost 6 1/2%. year-to-date the stock in the united states has been actually trending down 42%, so around that mark over there. deutsche bank though, has been scaling back its u.s. operations. it said it will be laying off employees. not sure on exact number of americans that will lose their job. for example, carrying north carolina, there are over 100 employees that work at that office over there. what is going on at the bank what are the problems? there are many. four company reorganizations in the past three years. you have a brand new ceo. great, new, ceo, this is the fourth time with a new ceo in the past six years.

u.s. economic growth slowed in the first quarter as consumer spending rose at the weakest pace in five years >>> the federal reserverelease its latest study on economic conditions in the u.s. today. our next guest says he will review the beige book for clues on the economic impact of the trump administration's proposed tariffs. tim spice joins us from new york tim, thanks for getting up so early to be with us. which sectors will you be watching closely when you see this release >> overnight we were looking at transportation, ports, railroads, air, trucking very important a lot of congestion in getting goods across not only greater europe and the world but also here in the united states. that's a big sector and also the tariffs. the tariffs on energy took an impact, a toll on the economy here in the states when the report came out last month we're expecting to see similar impacts again. there's really 12 factors that we've been observing those are the highlights around transportation, labor, everything else looks like it could be posting very good t moderate improvement off of last month's beige book report. >> last

u.s., will drive the economy forward. upset, this has more than the federal reserve.o years, >> the chairman speaking to us today. it may make that offer for toy for century fox. this is bloomberg. ♪ >> live from paris, i'm caroline hyde. vonnie: i am vonnie quinn and this is bloomberg markets. home-improvement retailer shares are surging up 9.5% right now. abigail doolittle is with us. >> pretty amazing. stocks were on pace for their best day since 2018. they missed red across the board and in fact talked about the worst rain and snow in 12 years and we can attest to that. the bright spot is the weather today. they are talking about may being on track. we can see why that is important. these are same story sales. using the earnings analyzer, we can see back in 2014, they almost got to 10%. the last time, all the way back .n 2004, pretty much every day they are trying to get back into that arena. they are so strong that they will make up for the quarter of,s mix, and speaking stepping in as the new ceo, a piece of this, they had the , retiring back in march under pres

u.s. doesn't lift tse tiffs. the federal reserveits minutes from his latest policymaker meeting today. to show expected divisions among fed officials over the yield curve and inflation. the information could help analysts forecast how many more interest rate hikes there will be this year. arsenal has named a new head coach, who spent the last two seasons as coach of paris saint-germain. he is replacing the most successful coach in arsenal's history. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. riggs.lor this is bloomberg. francine: thank you so much. this is what we are looking at in terms of what stocks are doing. lira one of our top stories. banks our other top story. overall, stocks are sliding. they opened europe a little bit mixed. now they are definitely following. i guess there are concerns about turkey, about north korea. it is unclear whether the president will meet the north korean leader june 12 in singapore. there are also doub

u.s. economy. well it's not just that oil prices are rising bust other commodity prices as well and that actually or could eventually lead to more inflation more inflation might mean that the federal reserve has through increased interest rates even more and all of that has. worked out a lot for the u.s. economy if we think about high commodity prices that is a problem for u.s. businesses for industrial companies for airlines who have to pay more for their fuel but also consumers have to pay more when they fill up their tanks so there could be some negative implications with prices on the rise and then also what we did see is the possibility of higher interest rates was a drag on all the real estate companies here in the u.s. and in other news in the end you've got well disney putting out some fairy tale numbers a fairy tale reaction on the markets. well not quite but that's probably because a deal in build multi-billion dollar deal that walt disney was banking on buying fox entertainment is in jeopardy because their results another company come cause trying to buy fox but overall the numbers were much better than x. expected and mostly because of the movie business disney made two great

half of them agreed with the head of the federal reserve who said of the u.s. was facing its 1931 financial crisis and -- since 1931. those of you who may be familiar with the impact of the tet offensive on american politics, the real impact was to convince people in the american establishment that the united states had to find a way out of the war. that the war was wrecking american financial institutions and the so-called wise men from big corporate law firms who met in washington told lyndon johnson that he could not reinforce -- that it was time to scale back the investments in economic well-being was being jeopardized by the war. and it was time to look for a way out. i was surprised. there was some similarity to that attitude and what the people managing the american economy in the summer of 1945 had faced. and again during the korean war. states, one of the reasons lyndon johnson to avoid mobilizing the economy is that he was aware of how serious things had gotten at the end of world war ii. he was the young congressman that point. -- at that point. simi

u.s. shed their losses following new comment from the federal reserve, plus, if you have a habit of returninghave ordered from amazon it may come back to bite you. details on the company's new policy and other stories driving your business day coming up. i'm about to start the nature's bounty hair, skin and nails challenge. so my future self will thank me. thank you. i become a model? yes. no. start the challenge today. and try new tropical citrus flavor with collagen. nature's bounty. >>> welcome back. let's turn to business. according to minutes released from the latest meeting officials are considering raising rates. cnbc joins us live from london. what would a rate hycomine for the average consumer? >> well, clearly a bit of debate going on inside the fed about its approach to inflation. it does seem that consensus view is they can allow it to run a a higher. while the u.s. economy continues to recover. in terms of a rate hike that might come as soon as june. that's about making sure the economy doesn't run too hot. for the average consumer, an increase in interest rates could mean slight

u.s. administration. obviously, we didn't get anything from the federal reserve as far as fiscal policy is concerned but we have seen the treasury ramping up their forecast for the issuance they need to provide. at what point will the market look at this and say we need to be a little more cautious irrespective of what the federal reserve is saying in terms of their ramping up of rates? >> i think the federal reserve will stay on track. should worry about is the fiscal policy is to stimulative at the moment. a full employment economy have a lot of problems. one of those problems is not stimulus from the federal government and we just added to that by increasing spending and cutting taxes. i think people should be worried about the long run trajectory of the debt and who will buy all of these bonds we are putting out there, but in the short run, it is not a concern. >> what about trade policy? something you're concerned about and you are not alone. many economists peers, more than 1000, signed a letter dated tomorrow do formally to come out tomorrow, calling on the president in congress to abandon what they

u.s., the july presidential elections in mexico. we are on a timeline and a schedule. coming up next, the federal reserveents away from its rate decision. what will be there take on recent inflation? we break it down next. this is bloomberg. ♪ shery: we are moments away from the federal reserve interest-rate decision. we will be closely watching the commentary on inflation developments. how are they describing -- how they describe inflation will be tricky. >> that will be the focus of the statement. we have a lull in the first quarter of activity. after eight years that we his the inflation target of the fed, that 2%, the core deflator, which they also watch, not quite there yet, but we can say we have arrived. that means they will have to update the language in the statement. we know this going into the meeting. so the update of what happened is what is relevant than the language around what they expect to happen going forward with inflation pressures. in the last meeting statement, they described a stabilizing around their objectives. analysts will be watching very closely to hear for any clues as to t

u.s. gdp and core personal consumption. 2:00 this afternoon, the federal reserve releases the beige book.ed will also begin its meetings on rolling back the volcker rule for the banks to which it still applies. now we turn back to italy. italy continues to go through its political turmoil as every day brings a new twist to the president's efforts to form a government. , wholcome luigi zynga list in his latest podcast suggested the italian political crisis could be worse than brexit. professor, welcome, good to have you on bloomberg. bring us up-to-date. you are following every twist and turn of this. at the present time it seems president month around may not be able to get these parties together anyway. one wants an election, one was to form a government. luigi: the situation is very confused. what is important is we were reaching an agreement for a government to be formed. toamela said he did not want have a particular ministry of the economy. i don't know whether constitutionally he has the power to do that. most say he does not but i'm not a legal scholar. what has been done economica

you know these are the facts this is coming from your own federal reserve this is coming from your bro labor statistics this is coming from u.s. government data shows that the top one percent are over ten percent better off the bottom ninety percent are more than twenty percent worse off so. well i design my engineering by financial engineering it's ockham's razor would suggest this is the reason people didn't want whoever the continuation of the obama regime remember hillary clinton ran as a continuation of obama even though she was way further right than him but she ran as a continuation of obama and people were like well if i were you know i'd rather just blow the whole system up with an orangutan i don't care well look i mean there is the fake left in the media space like rachel maddow by the equally culpable are journalists so called on the fake right like john stossel who's a fake right wing journalist who also doesn't focus on any of the realities that we are describing here and you know if it on the old failed dictatorships regimes yesterday yesteryear as the economies are failing they would prompt a bigger and bigger