why i think janet yellen inherit ad incredibly tough hand from ben bernanke. buying this stuff was easy. selling it is incredible hard. trish: adam johnson as she washed into the job, ben bernanke was in the position of qe1, and qe2. put it analogy, we have $20 trillion worth of debt as a nation. at some point we have to pay that back. if you keep borrowing you at some point deal with the consequences. guess what, the fed said, adam johnson, they're ready to deal with the consequences. >> thank goodness. we're finally getting back to normal what we're talking about. excuse me i get choked up talking about it. think what is actually happening here. we're taking a massive, massive stash of bond sitting in the federal reserve, we're letting them actually wind down. the key, trish, we're doing incredibly gradually. 10 billion a first month for first quarter, and go up to 20 billion for the second quarter and all the way up to 50 billion which will be ultimately run rate. they will very quietly let these bond expire. they will not reinvest proceeds. trish: they are

maria bartiromo asked ben bernanke about the importance of reevaluating regulations that were put inthe financial crisis. >> it's always a good idea to look at regulations. there are a lot of regulations out there. it's always a good idea to look at them and say are they accomplishing what they are supposed to accomplish? can we make them smarter? can we repeal those regulations that are not carrying their weight? and that being said, i think that it's very important that we not forget what a bad experience the financial crisis was and how much damage it did to our economy. so a lot of things in dodd flank have the purpose. making sure we don't have a situation like that. so if we try to reduce the regulatory burden on the small institutions that didn't contribute to the crisis so much. maria: one of the issues bankers say is the fact that dodd-frank, some of the rule making didn't hold as much capital. so they weren't learning. >> i don't see that. capital is the best way to make things safe. if they have enough capital they can absorb losses without coming close to failing. and inc

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ben bernanke is a hero. the person who stood up at a sacrificed to and do the right thing. the political system has its challenges. sounds like the unifying thread among these people is, on the one hand, ce and creativity. role.verybody has a everybody has their own nature and it takes a team. i like the fact that those people, for the good of whatever, can go from visualization to actualization. i can also tell you that those people with different natures and abilities. big picture thinker needs a person who pays attention to details. the creative person who is not reliable needs the reliable person who is not creative. companies got your imagination? ray: other companies would say there are comparisons. netflix has earned my admiration. jeff dorsey and twitter come in terms of radical transparency , hashe idea meritocracy earned my admiration. host: used systematized the and you putrocess it to work in financial markets. i do not know anybody who has tried to computerize the management process the way that you have. that youu think it is are out on your own? ray: it will

i would put mario draghi on that list and also ben bernanke.poke up at a difficult time and made a personal sacrifice to do the right things. so yes, i would put some of those economic holocene makers on the list. the political system has its challenges. >> it sounds to me like the unifying threads among all these people that you and fire -- admire are, on the one hand, independent thinkers, and on the other hand are encouraged to pursue one or both of those things. >> we should all like those people, shouldn't we? everybody has their role. that is a thing i also learned. everyone has their own nature .nd their own role it does take a team. them for being in the go from visualization to ask rise asian -- actualization. all of those people need other people with different natures and different abilities. the conceptual, big picture thinker needs someone who can pay attention to the details. the creative person needs a reliable person who is not creative. that goes back to the nature of knowing what people are really like. question back to the be

this is a man who taught been bernanke at mario draghi -- ben bernanke and mario draghi.ark: you wonder what mario draghi is ranking with that big thinking with that they did -- thinking with that big decision for trump has of the power to shape 2 institutions for he has withd the supreme court the appointment of neil gorsuch a he can shape the fed and his -- and he can shape the fed in his own light. how do you expect them to do that? marty: he is acutely aware of the feedback for market participants and business leaders. he wanted to be a member of that club and frankly done things to try to please those people in many respects although notwithstanding and daca notwithstanding. he will try to shape it in a responsible manner because of that is the way he has approached these previous fed them nominations -- fed nominations and kept gary cohn close to him. i think that would be his legacy, just like you think gorsuch was a tremendously viable pick and a -- if i may say, judicious one, i think he will go in that direction, a person uniquely qualified for that position. ju

maria bartiromo asked ben bernanke about the importance of reevaluating regulations that were put inthe financial crisis. >> it's always a good idea to look at regulations. there are a lot of regulations out there. good idea to look at them and say are they accomplishing what they are supposed to accomplish? can we make them smarter? can we repeal those regulations that are not carrying their weight? and that being said, i think that it's very important that we not forget what a bad experience the financial crisis was and how much damage it did to our economy. so a lot of things in dodd flank have the purpose. making sure we don't have a situation like that. so if we try to reduce the regulatory burden on the small institutions that didn't contribute to the crisis so much. maria: one of the issues bankers say is the fact that dodd-frank, some of the rule making didn't hold as much capital. so they weren't learning. >> i don't see that. capital is the best way to make things safe. if they have enough capital they can absorb losses without coming close to failing. and incentives are be

this is a guy that guided the careers of ben bernanke and mario draghi. father of modern day central banking. how difficult will it be to fill that void? >> it is a huge void, not just for the fed, but central banking and economic policy more generally. as you say, he was and is a great academic, haven't talked lots of people. -- having taught lots of people. he has international experience and renowned judgment and incredible interpersonal skills. it is hard to find that combination in any one person. when that person resigns for personal reasons, the fed and the economic community loses something. alix: a december rate hike might not happen, the change in that composition, what was the takeaway for you on all that? >> i am not one of the people that says this fundamentally changes what is going to happen policy wise. i think what will happen policy wise ultimately comes down to a judgment on two things we don't understand very well. we don't understand why inflation is low. therefore should inflation be an over determining factor for monetary policy? on

maria bartiromo asked ben bernanke about the importance of reevaluating regulations that were put in. >> it's always a good idea to look at regulations. there are a lot of regulations out there. it's always a good idea to look at them and say are they accomplishing what they are supposed to accomplish? can we make them smarter? can we repeal those regulations that are not carrying their weight? and that being said, i think that it's very important that we not forget what a bad experience the financial crisis was and how much damage it did to our economy. so a lot of things in dodd flank have the purpose. making sure we don't have a situation like that. so if we try to reduce the regulatory burden on the small institutions that didn't contribute to the crisis so much. maria: one of the issues bankers say is the fact that dodd-frank, some of the rule making didn't hold as much capital. so they weren't learning. >> i don't see that. capital is the best way to make things safe. if they have enough capital they can absorb losses without coming close to failing. and incentives are better.

worked with ben bernanke ring the financial crisis because he had wall street experience.t far from a standard banker but has like differences in policy -- slight differences in policy prescriptions, does not like policy rules like detail the rules, does not think they are accurate enough. he wants a range for inflation rather than a point target and thanks for the past couple of years, within an acceptable range. aboutd him about him -- how they measure inflation and he had critical remarks about the cpi numbers. >> the core cpe, the preferred is aboutf inflation proxy for the underlying strength in the economy, not a perfect proxy for what policy should be. and not a good proxy for the abroad case of financial stability. -- how wouldon is he go over at the fed because he is not an economist, he is a lawyer, serving on the board of governors. not an economist. it may be more difficult for him to lead the fed. he has angered some people at the fed which are criticisms of the way the board is organized and governed. that may be a issue. vonnie: the point he was making, he d

ben bernanke has written a lot about the past, but this is something that is still playing out becauseisn't there yet. daniel: in the event that she is not reappointed, and i don't know that, that would be a great way to contribute -- excuse me, continue her very strong record of public service. john williams made some comments earlier in the month that were only published yesterday where he seemed to be saying that we need a global debate here. bring it on. pretty interesting when you consider that one of his mentors is janet yellen. vonnie: looks like it was brought on it seems to me. shery: daniel moss, thank you very much. is set coming up, amazon to unveil a hold a range of products today at the companies seattle headquarters. what should consumers and competitors may be more importantly expect? we will have more next. this is bloomberg. ♪ shery: welcome back. this is "bloomberg markets." i'm shery ahn. vonnie: i vonnie quinn. micron technology of more than 7% after reporting earnings that beat. on top of that, the memory and storage chipmaker forecast another strong quarter. join

he taught the central bankers of the world including ben bernanke and mario draghi counted among his students, along with larry summers and christine romer. >> that was steve liesman there. >>> related, staying with the fed, the "wall street journal" reports that white house economic adviser gary cohn is unlikely to be president trump's pick as the next chair of the fed. the "journal" says the president is thing about cohn seems to have changed after he criticized trump's response to the violence in charlottesville in an ft interview. steve liesman will talk to william dudley tomorrow at 1600 cet. that article also says that maybe janet yellen is back in the running. it seems like trump likes her after heavily criticizing her on the campaign trail for keeping interest rates too low we'll see. >>> facebook turned over information about u.s. election ads to investigators probing russian meddling in american politics the company revealed it found an operation likely based in russia spent $100,000 on political ads with what it called divisive social and political messages. facebook says

very, this is the interesting thing, when ben bernanke was fed chairman during the obama years, printings an opponent of that. trish: he is a hawk? >> he was saying listen, you know, at some point we have to get normal. we should be normal now so we don't just create these ridiculous incentives in the markets to create bubbles. trish: let me just ask you about, that because it is important we do have to get normal. we have a $4.5 trillion balance sheet we have to work off but i can't imagine, no president is a big fan of that. everybody likes the spigot to stay open. >> that is the interesting thing here. remember donald trump professed mr. easy money himself, right? you would think that kevin warsh is not the right guy. my guess he is not quite a hawk. i don't think he wants to send interest rates to the roof immediately and squeeze the economy. trish: charlie, i have a to jump in. another name being floated. it crossed on wires. "wall street journal" is reporting jerome powell is being interviewed as well by the president. >> who is he? tell me a little bit about him. jerome powell? tr

. >> in the last ten years, or since ben bernanke has come on board, the committee has moved towards more consensus opinions. there's differing opinions on any decision not like the volcker or greenspan years where it was a heavy-handed chairman and i don't think that genie goes back in the bottle >> you don't think the known versus the unknown. >> i don't think it matters that much. >> in terms of how easy policy has been. >> i think it's a committee decision more now than ever. >> hold on. >> go ahead. >> you want to react to that comment? >> i think there's two competing ideas for the president. one is that he's a guy who wants to put his stamp on it and saying i'm going with janet yellen is that right what he said, it's more of a consensus -- >> that's the way the fed has operated it was sort of determined that the way that alan greenspan ran the fed was not the optimal way to do monetary policy and this sort of much more cacophonous way where you've got to listen to all 17 members of the fomc has seep as increasing better results. i think the president wants to put his own stamp

the imf and at the world bank, but most -- he talked the central bankers of the world, including ben bernanke and mario draghi, counted among hess students the list goes on and on of those that sam fisher taught to. >> he was due to leave next june, anyway, so leaving almost a year early >>> thank you, steve leading the up side today. >>> fort folio manager at eaten vance, steve grasso from post 9, and rick santelli checks in from the cme as well. so, steve, i should point out the yields have come back as well a little bit. so how do we put this in perspective? yesterday we were concerned about north korea. expectations for irma, what do we say about today >> i they all those are the major concerns that the market is still battling with, but it was the top story and it was d.c. and trump, president trump making a deal with the democrats, which was seen as quite unlikely the republicans can't seem to figure it out among their own parties. >>> and i do believe that the path of least resistance is still higher people are buying dips north korea, and every dip has been viable. >> yana, you agree

also he taught a lot of essential bankers in the world today including mario draghi ben bernanke so he professors hailing from mit and it's just another opening on the central bank for president trump. he has already named randy cross to be the first vice chairman, the vice chairman in charge of bank supervision but there were exiting two other openings and now there's this vice chairman's job open as well so that counts up to four openings on the federal reserve. >> he has been viewed as a strict parent when it comes to financial conditions if not a hawk someone vigilant about the potential risks out there. do you think it changes the tone on the policy side right now >> a little bit old fashioned in terms of the relationship of low unemployment and leading to higher inflation he has been willing to let others unlearn the lessons of central banking so that has made him more hawkish as more general bankers are. he's been a person who has the old doctrines in some ways and when people would say we're not going to be raising raid raits it's possible we'll raise rates and he's not necessa

that's a number >> ray dalio this morning was comparing now to 1937. 1937 is the year that i think ben bernanke once you put the great in great depression what happened is we had a couple good years of growth in the post-depression era and then they tightened policy and they went right back to it. that's the fear now for ray dalio speaking this morning on "squawk box. he said we might have a 1937 redux if the fed moves too fast in terms of reducing its balance sheet and raising rates. i'm not schur about the r word but possibly if the fed moves too fast and the economy is not ready for this change in policy the fed will launch tomorrow but i think the fed's going to go slow enough such that if it is making a mistake it will have an opportunity to pull back. >> all right, steve, thank you >> pleasure. >> steve liesman the hurricanes may not be having a negative impact on the overall economy. harvey has left houston in a bad spot, particularly when it comes to rebuilding the tens of thousands of homes that were destroyed. diana olick is live in houston with that story. hi, diana. >> reporter: hi.

. >> you're arguing what ben bernanke would say you guys and ladies need to pull your weight from the fiscal side because the monetary side can only take us so far and we're not going to be able to rely on that that's essentially what you're saying >> yeah i'm saying it not just a fiscal side, but pro growth measures, infrastructure, cleaning up the tax system so not just tax cuts, but tax reform so there's lots that can be done, and it's no puzzle, people have identified what's needed. if you don't get it, you get a global adding up problem and that's where the currency comes in, no one wants a strong currency these days. it's important we get that policy hand off. >> thanks for joining us joining us from london tonight >>> 35 minutes to go, just a couple minutes until we hear from the president dow's up 77 today, s&p is up 14. russ sl on a terror, up more than 2% and the nasdaq as well up 1.4%. and we are waiting to hear about the tax speech number of stocks have seen a pretax plan bump and they have one thing in common. we'll tell you that what that is, next >>> and later, why the

quite taken when ben bernanke said positive things.tion, because i have always thought of currency as being government-backed. there are two thisls of thought, one is is an asset class, one is it is a currency. the people who are most bullish believe it will become a currency and you want to buy it. i have a hard time with both of those. i can't see how this has intrinsic value. the currency issue to me is quite indeterminate. goingnot invest in been -- in bitcoin. we understand why it is appealing to look at a new itng, but the process behind -- is used in various kinds of payment applications versus the currency itself. my: i'm trying to keep opinion out of discussion. let's look at tv . you can see kathleen fisher in the backdrop. the alumni stretch up the hudson river. you can come over here click on a preview of segment and there it is. you can steal a log con backs bitcoin chart and bring it over to your bloomberg. what a great country. ♪ ♪ "bloomberg surveillance ," how about a single best function. this is from kathy fisher

david: may 22, 2013, ben bernanke uttered the words taper and sent the markets and to a tailspin.does the to hurt? is there a certain amount of not rolling over that will start to bite the bond market? do we need the ecb in the next also start tapering? >> i think you need other central banks to join in the mix. the u.s. is doing well and need to remove some stimulus on the monetary policy side. they have announced a reduction in the balance sheet, elements of the balance sheet, going forward. we will see in the next few days, but that with a drawl of stimulus is required. it's not that it will hurt the u.s. economy. what we have seen and markets his treasury rates are affected like a bunch of things. have stillates fallen in the u.s. relatively is aing so there confluence of factors that play that to what extent reflect open and transparent communications by the fed, but other factors are leading to looser financial conditions in the u.s. angie: unintended consequences, right? the bloomberg illustrates this, 4010. those twot seen recessions in 2001 in 2008, those red bars here, a

barack obama reappointed ben bernanke, bill clinton reappointed greenspan. waters with this president. i would think he would pick somebody of the republican mindset but not with any idea of reducing the fed's independence. jonathan: you are an investor. david: how do you take into account this incredibly quiet period of slow growth but steady growth, asset valuation? do you hedge against the black swan that none of us can figure out right now? how do you approach that as an investor? at 9:00, we will be discussing this at the office. let's start with the fact that nobody good -- is good at market timing. warren buffett would be the first to say. that said, you have to be mindful of the fact that on a valuation basis, the stock market today is in the upper decile of markets in the past few years. these tail risk issues, taking money off the table. we are cautious about the market but we have not done anything dramatic to position ourselves. david: are there sensible hedges, is it just going to cash? steve: if you think the market is simply going to go down 2

i want to go back to you and ben bernanke and office a few years was a greate historian with a respectivinga one off shift forward inflation and negative wage growth and things will be fine on the lord king: i do not think we have seen a one-off shift. people tend to focus on the fall in sterling following the brexit referendum at that merely took sterling back to where it was two or three years earlier, so i do not think we have seen a significant substantial fall in sterling relative to where it should be. for a country with a very large current account deficit it should not be looking to an exchange straight -- rate that is wrong -- strong. tom: this is trade weighted pound sterling and as governor king knows, back we go to 1992 and the agony of a different time. good morning, mr. soros. help us out with this across our social media for radio london as well. this is a profoundly important chart. lord king: it is tom:. for are the ramifications the elites of the nation and prime minister may if we break down to a new trade weighted weakness in pounds sterling? lord king: if you look

started the conversations on its tapering program in june 2013 and it had already been flagged by ben bernanke tension. there's a high level of debate right until be fed took its decision in the summer. the ecb is following a similar path and that is causing frayed nerves. englander, what is the downside for your dollar? technically, does it go back to water, upside risk? steven e: it would be tough to go back to 1.15 at this stage. alix: thank you so much. steven wieting, stephen engle under, you are sticking with us. they said that they would wait to see any change in their qe plan. they may not be ready for that. you also hear nomura pushing back there called to october as well. really trying to move the market expectations further off into the year. ,n terms of the jobs numbers 156,000, the unemployed at 4.4% hourly earnings, no growth than in the market, you see the markets holding on to some gains, but the real market has been in the treasury market. we have had a stronger dollar into the session. it's now moving lower and you may see more selling off the 10-year. coming up to react to t

both i and ben bernanke have out that younted should consider fiscal deficit you can make that completelypatible with central-bank independence. as long as it is the central bank which determines the maximum amount of such monetary finance, you still have independence. independence is still worth defending. let's see the big reason why people might challenge it. the central banks have been effective at achieving low and relatively stable inflation. we have a more resilient financial system. if you step back and say the last 20 years, what has economic performance been like it's been a disaster for the second 10 and there will be social pressures coming back, people saying this system isn't working for enough people to be sustainable. jon: it has come with inflation targeting. has that made financial systems more stable? self. not in it the great fallacy before 2008 was the belief that it was enough to have one objective, low and stable inflation, pursued with one policy instrument, the interest rate. we achieved low and stable inflation and we still had an enormous financial crisis. low a

thousand 12 was giving money to rich folks you had no desire to spend it, with , a work in which ben bernankeredecessor, they never had the guts to go through and that is where we are here in 1965, 30 years where u.s. inflation rates did not go below 2%. itself -- could it repeat itself? jonathan: you have the patience of a saint. if you could put money back to work now, over the next five years, how would you be thinking about markets? today, the good thing today, i believe there is a lot of good things today. we are witnessing synchronized economic growth across the world. europe is picked off the floor and is growing. is full cylinder and the american economy refuses to go into recession. that is good news. good news for equities. good news for commodities. they have picked himself off the floor and will continue to trend. because of this monkey brain, i hate you, i love you, capital markets want to give u.s. treasuries between 2% and 3%, they will not do anything to precipitate a crisis. is,only bad thing inevitably, there will be an air pocket and where is your protection? think the term

>> well, obama appointed ben bernanke who was appointed by george bush so it would not be out of theere would be other candidates, some of them would be quite good, others maybe not. >> does he or she need to be an economist? >> well, i'm an economist, steve, so i have a bias here i would like to see an economist as the fed chair. >> what would be the down side of appointing a non-economist? >> monetary policy is not as simple as running a a business in the sense that it requires understanding how the dynamics of the economy work, maybe only a limited amount in some cases but our last experiment with a non-as the fed chair you may remember g. william miller that didn't turn out so well. >> didn't end well. >> so i'm all for having non-economists on the board or as bank presidents, some of that is important and necessary -- >> are you available for the job, charlie >> next question, steve. >> i think we're done. charlie, thanks for joining us. >> thanks, steve. >>> coming up, roku setting its ipo price at $14 a share, valuing the company at over a billion dollars. we'll speak to found