bill dudley said the fed's like to raise interest rates this year.drday christine lagarde the should wait until next year before raising rates. eric green is with td securities and he joins us now, a former fed president -- eric: i wish i were, but no. alix: what would you do if you were in the fed right now? hold off untilot 2016. when you think of the imf, they have a different mandate. the fed has a domestic mandate. the fed has socialized the whole notion of higher rates for almost nine to 12 months. they want to raise rates. the question is are they going to have enough reason room for that bias to be realized. i suspect it's not about inflation, it's not about jobs, it is about growth momentum. as long as they are seeing stronger growth and you can pick your number, it is the direction of growth, higher as opposed to flat or lower, that will be sufficient to get them off the theyin september alix: have said data dependence, but which data point? what ends up being more important? if you look at the data meeting,t april's fomc they had a three-m

central bank is still likely to raise interest rates later this year but new york fed president bill dudley declined to say exactly when the fed would act. >>> i still think it is likely that conditions will be appropriate to begin monetary policy normization later in year. but the likelihood heiming -- timek will depend on the economic outlook and that is largely shaped by the incoming economic data. >> dudley is a voting member of the feds policy committee. >> our guest tonight head the headline n was great but the details are great. anthony chen chief economist at chase. welcome, anthony, good to see you. >> glad to be here. >> so what impressed you so much about the internal components about this report. >> what impressed me is people have been constantry talking about the discouraged workers and they make the numbers work but the reality is the discouraged workers are going down and they were down 50% during the peak of the financial crisis and you saw a 2300% declin discouraged workers and the number of people rejoining the work force and you can't say people are dropping out of the l

new york fed president bill dudley says a september rate hike is in play still if the u.s. economy keeps improving. he tells the financial times evidence of a pick up in wage gains in common household spending is alleviating some of his concerns about momentum in the jobs market. that says he warns the market implications could be greater than many believe setting a precedent that membership is reversible. >> still to come on worldwide exchange a bad start to trading. the latest for the ecb on the wake of the decision not to offer extra emergency assistance to greek lenders. we'll leave you with a look at how the major banks in europe are trading today. >> greece's surprise call for a referendum sends shockwaves through global equity markets. european banks fall sharply amid concerns over contagion. >> a bailout deal is still possible. the eu commission president is due to hold a press conference in the next few hours. this as the imf says it still wants to be paid. >> i hope that payment is made on tuesday and if that was not the case i would call the board very very promp

third sign of complacency, the federal reserve still has officials like new york fed pret bill dudley who said today that a rate hike in september is very much on the table. hey look maybe it is. that's already. do they really have to say it today? is this the day to make the declaration? why not just say nothing on a day like today. come on bill i've known you for a long time. you are better than that. what is the hurry? you want to send the stock market lower? good. success. well done. the fourth sign of complacency, a belief that the world hasn't aligned when greece is falling apart. stabbing him in the back when they least expect it. but it wasn't always like that. there was one so i'm in the last month that tsipras was all smiles. do you know when? when he visited russia and met with vladimir putin. when he was there he gave a speech trashing the eu. russians are suspected to be bankrupt. but that's non sense. russians have plenty of cash. i know many who are asking themselves why am i here and not in brussels? i'm here because i believe it is the rule of country seeking to explo

new york fed president bill dudley speaking in minneapolis said conditions will likely be appropriatee hike late they are year. he said the timing and likelihood obviously depends on the economic outlook and once the fed starts hiking he sees a shallow upward path for rates in the years ahead. he says look out there will probably be some market turbulence when the fed starts to hike. why does he come to this conclusion about rates being appropriate to hike late they are year? it's because of greater confidence he has that inflation is not falling and moving back to the fed's 2% target. on the may jobs report he said that gains were widespread across industries. here's other comments he made. he said wage gains were higher than recent years at 2.3%. the tightening labor market could lead to wage gains, although he says there's still some ways to go in the job market. he says the economy forward momentum looks like it slowed sharply in the first quarter and the second quarter bounce-back was quote relatively muted. but he does expect growth to pick up behind the call that rates will lik

also bill dudley is speak later today. u.s.t chinese hackers may be behind a matszive data breach of the federal government. identifying information of up to 4 million workers may have been stolen including those with security clearances. the fbi is probing the breach detected in april at the office of percent until management. they say hypothetical accusations are irresponsible and counter productive. the sec is pope benedicting allegations that dow kemchemical misused funds. in a statement on thursday dow chemical says it addressed the issues through dependent issues and audits. let's have a look at share price action in dow chemical. it's up today 1%. still to come a company focused on rapid development of life saving therapies. we're back in two. [ male announcer ] ours was the first modern airliner, revolutionary by every standard. and that became our passion. to always build something better airplanes that fly cleaner and farther on less fuel. that redefine comfort and connect the world like never before. after all, you c

bill dudley saying that rates likely will be raised this year. prevailing view is that it might be pushed off until 2016. there was a push on the part of the imf all but begging us to push it off until 2016. along comes this better-than-expected job data where we gave more than 280,000 jobs. unemployment rate, i normally don't focus on the dow, it's down in the face of what was a strong report because of fears that it's going to lead to rates going up sooner rather than later. these guys are like civil, they change on a dime there. you go. >>> the justice department targeting banks for billions more again. lizzie mcdonald on that. lizzie? >> that's what's happening right now. but what we're talking about is closing out these mortgage backed security probes that have been lingering since 2008. the question is why wasn't fannie and freddie fined too? why didn't the department of justice go after fannie and freddie? they got a nonprosecution agreement in the dead of night in the middle of december from 2011 from the sec, no fines imposed in basicall

there's been fed speak including bill dudley talking about this over the weekend what are you gleaningng? >> there is a big difference between what the fed thinks it's going to do and what the fed might actually do. in my reporting, there is a sense there is a desire to move in september that they feel they have waited long enough they have been patient, they don't need to be exhaustively patient. global instability might cause them to push that back further. you see in the fed funds futures markets are pricing in the idea rates might not rise until 2016. >> just when we were getting there maybe this time. appreciate it. >>> bad news for the apple watch. the buzz surrounding the gadget hasn't weighed other products. tune into "closing bell" tomorrow, julian robertson joins us in 2 a cnbc exclusive. lots to discuss with him. ery auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92

first question is also referencing something that bill dudley said recently which is to due with the use of the balance sheet in tightening monday -- monetary policy and that the hikes should be hiked before the fed continues -- considers ending reinvestments and i wondered if you could give more clarity on how the fed spwepdzintends to approach the ending approach of the ending of reinvestment on the balance sheet and would you see any end of the tapering investments for the maturities in the portfolio? and the second question is the use of gradual and you used this term in the opening statement and is the term gradual on the official guidance from the fed and something we should expect to see popping up in official statements in the future? thanks. >> so let me start with the balance sheet and our reinvestment policy. we issued a normalization statement giving principles of normalizing policy. and what we said at that time is that we expected to reduce or cease reinvestment at some time after we had begun the process of normalizing policy by raising our target for the federal funds

first question is also referencing something bill dudley said recently which is to do with the use ofg monetary policy. he suggested that the short rates should be hiked some way from the lower bound before the fed continues, considers ending reinvestments. i wonder if you could give a little bit more clarity on how the fed intends to approach the issue of ending reinvestments on its balance sheet. would you, for instance see any argument for a tapering to reinvestments to smooth the profile of maturityies in the portfolio? you've used this term today in the opening statement, is the term gradual on the way to becoming official guidance from the fed. is this something we should start to expect to see popping up in official fomc statements? >> so, let me start with the balance sheet and our reinvestment policy. we issued a normalization statement giving principles of normalizing policy. and what we said at that time is that we expected to reduce or cease reinvestment at some time after we had begun the process of normalizing policy by raising our target for the federal funds rate. we s

. >>> up next morgan stanley's head of investment banking gives us his reaction to bill dudley's warning for a coming regime shift in financial markets. >>> also coming up netflix says it has no intention to put ads on its platform. but should it? we'll talk about their business model with our netflix stock pros, coming up. the time police arrive on a crime scene they could have little to go on. a vague description. a single piece of evidence. a partial plate number. with an app from ibm officers can now access over a billion police documents to find hidden connections and identify potential suspects. ibm analytics helps one hundred thousand officers work smarter every day. >>> welcome back. let's now bring in our mary thompson who join us with an interview with the ceo of morgan stanley international and the president of the firm's institutional business mary. >> thank you kelly. thank you for coming down good to see you. i want to start first, let's start with your ceo of the international business first. i want to talk about greece. do you think they'll get a deal done? >> if they get

but one thing that bill dudley referred to and the chair before to -- referred to in her press conference this week, things to watch like long-term unemployment have stalled. they did not come down over the last few months. the key phrase to me in janet yellen's press conference this week was when she said that she wanted more definitive evidence that the labor market had healed. she is looking at a lot of stuff. if those things stop, that will make them wonder if the economy is really healed, and therefore, delayed the hike. host: we are taking phone calls this morning. you can join the conversation by calling us at (202) 748-8001 on the republican line. democrats can call (202) 748-8000. independents, (202) 745-8002. you can also send us a tweet. we are on facebook, facebook.com/cspan. on twitter, @cspanwj. or you can send us an e-mail at journal@c-span.org. here is just ellen -- janet yellen, speaking about why interest rates are not ready to rise. [video clip] janet yellen: since the committee last met in mid april job gains have picked up and labor market conditions have improved som

but there are points when the turbulence to use a phrase from bill dudley. raises rates. so yes, liquidity is something to manage around but actually something to take advantage of during periods of stress and turbulence. >> you know, peter, there is a story in usa today we talked about a little bit earlier. it mentions that mutual fund outflows have taken place over the last 16 weeks. people have been pulling more money out of mutual funds than putting into it. that is a concerning sign that investors have lost confidence in the united states stock market. brian pointed out that he thinks there's something to spend on big ticket items like houses. where do you come down on that debate? >> you could. but they've missed this entire rally. now, of course they piled into fixed income that's where a lot of the flows have been. you know that very well could be right. but it could be doing that. fixed income is where they lie. and that's where the risk is is if the fixed income market -- >> one aspect in that is probably demographics. the u.s. population, us baby