. >> chair powell, financial markets have been buoyant all year. is the committee comfortable with where financial conditions are? do you see a risk that looseness in financial conditions could affect the financial target? >> we look carefully, that's what we do. what we really look carefully at is the performance of our goal variables and how are we affecting the economy. so what we've seen over the course of just take this last year. we've seen inflation over the last couple of years come down a lot. we've seen the labor market cool off quite a bit. that suggests that our policy is restrictive. we can also look more directly at the parts of the economy that are affected by things like housing. housing activity is very low. that's partly significantly because of our policy we think our policy is working. it's transmating. it's having the effects on goal variables that we want. a lot of things move financial conditions around as you know. we don't really control those. i would say we see the effects we're hoping to see on goal variables. and the pl

chair powell says they are entering a new phase, what does that mean? >> they are trying to look at inflation and make sure inflation is coming down before they cut. they are going to want to see what president trump and his new economic teams put forward when trump takes office in mid-january. >> did the interest rate cut in the first phase accomplish what the fed wanted? >> it is curious what they have been up to lately. they started in september with a really aggressive half-point cut. it looked back then, that was a single they were going to move aggressively but really soon after that cut, they had to reverse course and be cautious. they engineered two quarter-point cuts after that, one in november and one today. kind of a mixed message but they have brought rates down 100 basis points since september. powell was saying he thinks that is a good place to be. and if the economy weakens, they can cut rates and give the economy a boost. they are high enough that any search in inflation won't be deadly for the economy. >> fed chair powell said this late

chair powell: you don't rule things completely in or out in this world. that doesn't appear a likely outcome. we are 4.3%, that is meaningfully restrictive. it is a well calibrated rate for us to make progress on inflation while keeping a strong labor market. thank you very much.

finish. >> let's go to nancy for the last question. >> reporter: hi, chair powell. nancy marshall again, sir, from marketplace. you said a couple of times inflation if has been moving sideways. if you know, it appears to be settling in around -- excuse me -- 2.5%. do you think the fed is just going to have to settle for that and accept that you're not going to get to your 2% target? >> no, we're not going to settle for that. i think, you know, we certainly have every intention and didn'tation -- expectation that we'll get inflation back sustainably to 2. and i am confident we will achieve that. it has taken longer, but it's -- you have to be, you know, we are making progress. we have made a great deal of progress, and we'll continue to do so. and get back to 2% inflation. that that's what we owe the prick and, you know, we're committed to achieving it. >> reporter: in that case, can you rule out a rate hike next year? >> you don't rule things completely in or out in this, in this world. that doesn't appear to be a likely outcome. i think we're at 4.3%, and that's me

i expect another good year next year >> edward. >> thanks, chair powell. edward lawrence from fox business you say we are closer to the neutral rate what percent do you believe is the neutral rate >> so i will say a couple of things first of all, when we -- the thing we write down in the summary of economic projections is the longer run neutral rate, which is the neutral rate at a time when supply and demand are in balance the full economy is in balance and no shocks are hitting the economy. that is not where we are right now. so when we are making monetary policy at the fed, that's not the question we are asking so you can't do straight read between those longer run numbers that we write down and what we think the appropriate policy should be. so basically at any given time various shocks are hitting the economy, and so we're doing in real time is we are looking at our policy stance and looking at the way it's hitting the economy, particularly look at the effects it's having as we try to move the economy towards maximum employment and price stability. the

a cut is expected but what chair powell signals about january, that's what investors will be watching for. getting that messaging right will be difficult, says one of our guests. we will get you set up for what is going to be a consequential press conference. >>> the last time nvidia dropped 10% it rebounded nearly 40% to record highs. is today another chapter of that or is it just normal volatility? we will have more. >>> by tim seymour says it is back to the future for the mag seven. he is here with what he means by that and how he is trading. >>> let's start with the markets. let's get the set up. >> a multi-decade losing streak might be snapped and the dow jones industrial average if the gains can hold. we are up about 160 some points at 43,611. it is important because of the last couple of days, traders have been looking for that 50 day moving average as a possible support area. that number is just around 43,500. that is the level you want to watch. you get the idea. if it can hold above there, maybe we can find some support for the next move higher. that is the level to watch. t

i think that if you listen back or remember back to chair powell's comments from the new york times deal summit he did speak about how they went 50 basis points in september because of data they had gotten right before that, presumably the labor market data and the rise in the unemployment rate. so i think it is a good print in terms of a normalizing labor market. to oksana's term earlier we are seeing several signs especially with initial jobless claims, all of that showing a very solid labor market, but nowhere near where we were in 2023 where the average jobs created per month was about 100 k more or even 22. all of this points to a fed that should continue to normalize policy from the restricted -- restrictive levels they are at but at the same time we will sit at a level of funds rate higher than we previously thought. sonali: i love that the spread makes a market. we will get to the 10 year because that's a favorite part of my conversation. oksana: even the restrictive. what is restrictive about the rates? we have not seen that reflected in the economy, not housing, not unemploymen

here on cnbc right up to fed chair powell's press conference that begins at 2:30. you've been through this drill and know not to miss it. 2:00 the decision 2:30 the presser, that's the story. >> fireworks one or the other. after the break joined in studio by delta's ceo ed bastian, holiday travel demand, future of flying and topic on everyone's mind drones. "power lunch" is back after this. you founded your kayak company because you love the ocean. not spreadsheets... you need to hire. i need indeed. indeed you do. our matching platform lets you spend less time searching and more time connecting with candidates. visit indeed.com/hire ♪ [music] i could unlock my front door ♪ searc♪ while i dinetime connectin baltimore ♪dates. ♪ no lock box to explain ♪ ♪ ♪ at 9:00 the doors would lock up ♪ ♪ save me from forgetful slip-ups ♪ ♪ if my home just had a brain ♪ ♪ ♪ i could make a custom pin ♪ ♪ watch the dog walker get in ♪ ♪ so ziggy won't complain ♪ ♪ ♪ when my in-law comes a-knockin' ♪ ♪ i can open, maybe lock it ♪ ♪ if my home just had a brain ♪ z's bakery is looking

be more patient, at the start by commenting on the stunning reversal and that's something that chair powelleems to address in his press conferences. it's absolutely wonderful that were seeing real teeth and the effort to cut spending. the deficit spending that fuels the inflation and echoes beyond what monetary policy can hope to do. in many ways when the fed reverts to its model, the only way to fight inflation is through restrictive interest rates. whose economic activity are they really restricting. not the federal government they have a busy little beat and spending money in the inflation and fiscal transfers all to the detriment of our nation's economy. in the fed seeks to punish the real reducer of goods and services small and medium-size businesses with putative and what the market reacted to yesterday set models where the fed is now and it seems so confused what chair powell was saying yesterday embracing the idea that the fed needs to be patient sort of hinting the trump policy that might cause inflation in the omnibus thing in the press conference was chair powell saying we are mo

now if you listen closely to chair powell he's basically going out of his way to down play the recenton data going back to saying three-month annualized, six-month annualized, going back to saying shelter will come down. so he's doing everything he can to try to down play this inflation because i think in his heart, he believes that inflation is largely done. it's all the mission accomplished and at the same time, the unemployment rate is rising, so that's a recipe for more cuts. now the second thing is that now the street and many people are looking at the stock market going up and thinking that financial conditions are too loose. the fed can't cut but again, that's misunderstanding how the fed looks at financial conditions. fed officials have been telling you, they're looking at things like financing rates, so mortgage rates are high, people are unable to afford houses. that's tight financial conditions. credit card delinquencies are going up that's tight financial conditions. they make policy not now high bitcoin is or mag-7 is. so because of that, i think they are going to definit

so, i'm not surprised that chair powell is talk about that rhetoric and calibrated.ill have to wait in this case for specific details and implementation to come through. you can jump the gun that doesn't pan out. >> that's talk asset allocation. given all of the dynamics, tariffs and fed and new president. what are your top convictions for next year? >> we think nominal gdp will get a boost in the u.s. however, the risk profile around the base case is different from a year ago. now we have to be concerned with a stagflation scenario. for the recession to happen, the fed will have to become very hawkish. we don't see that happening until later in 2025 with more clarity. the risk profiles are more focused on inflation once again after talking about the labor market for the better part of 18 months. >> what sectors would you highlight as potential gains for investors here? i was reading how u.s. financials were looking quite attractive. do you share that opinion? >> definitely u.s. financials and tech is going through the earning cycle. as long as that remains undisturb

that's right chair powell bringing out oldies but goodies with metaphores.re 2018 when the room is dark with lots of furniture you turn off the light. a lot of language about going slowly, more cautiously. this is a fed trying to buy time. charles: before he even started speaking you picked up on that and said you think the fed is afraid of what may happen with respect to fiscal policy. >> and they should be in terms of extended timing, right? as you said their data is breaking down. he used the term inflation has fallen apart from what we thought at the beginning of the year to the end. that may be the most sort of aggressive culpable language we've ever heard him use, and then we're talking about the extent. he just took back from 4-to-2 to match the market and sorry in the reverse and then this is, it's 150 basis points between what neutral is from the top dot to the bottom dot. i just heard danielle say that's the largest range we've seen in a long time. so you can drive a truck through the range. it's getting wider and wider. timing, we knew they weren'

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fed chair powell warns america's debt is on an unsustainable pastor how do we get the debt down?thony on that next. ♪ ♪ to go further, you need to be ready for what's down the road. as energy demand continues to rise, we're harnessing breakthrough innovations to increase production in the u.s. gulf of mexico. our latest deepwater development, anchor, produces previously inaccessible oil and natural gas, allowing us to deliver the energy we all need today so everyone can follow their own road. that's energy in progress. an alternative to pills, voltaren is a clinically proven arthritis pain relief gel, which penetrates deep to target the source of pain with nonsteroidal anti-inflammatory medicine directly at the source. voltaren, the joy of movement. investment opportunities are everywhere you turn. but at t. rowe price, we're letting curiosity light the way. asking smart questions about opportunities like advances in healthcare. and how these innovations will create a healthier world tomorrow. better questions. better outcomes. stuart: welcome to new york. a little cloudy and mis

their considered pretty -- they're considered pretty hawker, and as we know, chair powell suffered thefrom michelle bowman it on my if hand there five different dissenters but for five different reasons. some of them are more hawkish, some more dovish, but it's going to be more difficult to hold the committee together for powell going forward into what we know could be a potentially more tumultuous time for him politically. cheryl: well, the labor mark, big piece of this, the employment picture. labor revisions have certainly lowered private payrolls this year, so what does that mean, in your opinion, for the economy? the inflation story, and obviously, the jobs story. >> right. and, cheryl, when the nation's statisticians are literally rewriting history and taking a machete and cutting in half, we thought there were 2.4 million if jobs created in the private sector through the year ended june 30, now we know it's 1.2 million with further downside potential for further revisions coming out later this month. you start to say to yourself, what on earth -- why are we paying attention to t

. >> fed chair powell wrapping up his comments. as the fed chair was thinking, the fed released the latest beige books. let's get out to steve and some initial reaction. >> i'm just going to cut to the chase. his commentary on policy and that he says we were the last major central bank to cut and we are on a path to bring rates back towards neutral. because the economy is doing well -- i will read this. the economy is strong and stronger than we thought it was going to be. the labor market is better and the downside risks are -- appear to be less. inflation is coming higher. the good news is we can afford to be more cautious as we try to find neutral. i don't know what that little more cautious means. i was watching the fed probability. i will double check one more time. 75% probability of a cut in december. that remains the case. it looked like the march and may data were -- or may probabilities are the same. not a big change. we talked about this in the last hour, which is that there's a bunch of data to come. the fed is in -- do

and the all- important press conference and comments from the fed chair powell.ere up over 1% above the s&p and the nasdaq when we began trading >> a reflex bounce, the market was oversold finish yesterday with some acceleration over the afternoon. we did finish on the lows of the day it seemed systematic when we reprice the fed path and bond yields were doing what they were doing s&p 500, it is below the 50 day average come on a tactical basis, a little bit of a hurdle, above where we are, now we are below, 59 .24. at the november lows and the october highs in the s&p. we are resetting on this plateau . we are figuring out within the market, what is discounted, perhaps, a slightly murky path to the fed, and the economy. look at the nasdaq 100 relative to the equal weight. a handful of large stocks with some really low quality smaller speculative stuff ripping higher while the average stock is languishing. the divergence over the last few weeks, yesterday 2.5% drop in the nasdaq 100 and you are bouncing today. there was a sense of unbalanced and brittle market th

so it's going to be a big number next week is cpi, which has been running a little hot and fed chair powellier this week. then of course on the 18th is the fmoc rate decision i think once we're through these events, investors can actually then invest into sort of that christmas santa claus rally. so i think 6300 is still very doable. >> you're basically saying don't go away after the 18th because there may be some additional up side towards the end of the year >> yes or buy the dips. >> you suggest there that we're in a good news is bad news for stocks environment why should the market be concerned if the fed is going to be less aggressive in terms of cut being rates? >> i think there's a conceptual change that the market has to get used to which is let's say earlier this year when the fed started cutting people thought five cuts is good for stocks in 2025 so the number gets reduced, it's bearish. i think as we get into 2025 the market's going to shift to thinking the fewest cuts possible next year is the best case because it elongates the dovish cycle i think we have to flip the script but

this fed, fed chair powell does not like to surprise the market, and when he goes into the meeting with he has to talk around it and it doesn't really make sense to cut. why is the fed not able to surprise the markets anymore? >> sure. i think the fed should be willing to surprise the markets. if it did it once or twice, it might even be healthy. listen, i knew they would have a tough debate and the market probabilities didn't help. >> right. it's like they got bullied by the market into something they didn't want to do. >> not every fomc participant, you'll notice a number of them in their sep suggested pause. there was at least one dissent. i think you've got healthy debate there. i think that's a good thing. now, given where they are, they need to wait for demonstrable progress. >> what are the odds of the fed getting closer to thinking that they might have to actually hike? we were debating earlier a call at apollo, a 40% chance. >> i saw that. i don't think that's on the table at this point. and i think you got four or five big structural changes. they're going to change this discu

fed chair jerome powell's dark room.ut darkened rooms creating a dark mood on wall street. chairman and ceo joe mobley a is here to tell us what he made of the selloff and if he can see the light at the end of the tunnel when it comes to the fed's inflation fight. "the claman countdown" is coming right back, stay with us. ♪ patients who have sensitive teeth but also want whiter teeth, they have to make a choice- one versus the other. new sensodyne clinical white, it provides 2 shades whiter teeth as well as providing 24/7 sensitivity protection. patients are going to love to see sensodyne on the shelf. when i got diagnosed with skin cancer, it was right under my eye. i was told that surgery was the only option, and i did not want to get cut open on my face. i asked my women's group to pray for me, and one of the other ladies told me about the procedure that her friend had and it was gentlecure. if you, like millions of others, are affected by skin cancer, it's important to know that surgery isn't the only option. there's

sonali: coming up, fed chair powell says the u.s. economy is in remarkably good shape.

like the fed and chair powell, i would like to see the data policy and see what the tariffs are.not answer, it all depends on the data. he has absolute discipline student of the data. wonderful to see you and thank you for being with us. coming up on monday, do not miss this, steve sharon of federated hermes, kelce faro -- kelsey barrow of jp morgan and sarah hunt. plus a sound -- a showing of jonathan fail -- jonathan ferro. thank you for being with us. this was bloomberg surveillance. ♪ matt: looking at gains like carmakers are up and broadcom is up and it is an exciting market. katie: sonali basak is off and bloomberg open interest starts right now. matt: the chips are up, semiconductor shares getting a boost from broadcom's bullish outlook on ai demand and it is not just ai excitement.

that tends to be what happens when fed chair powell takes the podium.ues to show up. i think the trump administration incoming would be $30 million more. i just did the conversion. jonathan: what? annmarie: if you were going to do 100 million pounds for $100 million. jonathan: thank you for that. coming up tomorrow, neil dutta, victoria fernandez, and priya missouri of jp morgan. need to get to the holidays. need to get the 2025. what he talking about? i haven't been on vacation. [laughter] let's wrap it up. let's go. ♪ katie: stocks hitting a wall after a big day yesterday. 30 minutes until the official start of trading. i'm katie greifeld. sonali: i'm sonali basak. bloomberg "open interest" starts now. ♪ katie: numbing up, fresh retail data suggests consumers remain resilient as investors remain -- await the final fed decision of the year. there is also a new ai darling as nvidia falls into correction territory. we will take stock of broadcom's rally. and

i pressed chair powell on when they will hit that 2% inflation target. >> we are talking about, when are projecting the economy, you know, three years out, two years out, you are talking about high uncertainty. very high uncertainty. it's been a bit frustrating because, while we have made progress, it has been slower than we had hoped. nonetheless, we are still on track. >> reporter: so, norah, the markets do not like uncertainty, and with that inflation target pushed out, investors are questioning why there was even a cuts today. >> norah: very smart question, kelly. thank you very much for this update. now this. the lawyer for luigi mangione says the 26-year-old suspect accused of shooting and killing unitedhealthcare ceo brian thompson will end his fight against being extradited to new york and could be in manhattan to face charges as early as tomorrow. mangione is currently being held in pennsylvania, where he was arrested last week. he has been indicted by a new york grand jury on multiple charges, including murder as an act of terrorism. we're learning more tonight about the 15

fed chair jerome powell making the announcement this afternoon. >> with today's action, we have lowereda full percentage point from its peak. and our policy stance is now significantly less restrictive. >> this follows a cut of a quarter of a percentage point last month, and a larger than usual half point cut back in september. this, as the central bank dials back its fight against inflation, bringing those borrowing costs down for households and for businesses. >> think about your credit card rates, your auto loan rates. >> while inflation overall has been trending down, americans are still feeling the impact. with two consecutive months of rising inflation. last month's consumer price index showed prices rose 2.7% compared to this time last year. >> remember, it was at 9% in june of 2022. so we're getting closer to the fed's 2% target. food and energy. over the span of a few years, we're still paying a lot more for. and that's and that's a consideration for the fed. >> this was the final interest rate decision before the inauguration of president elect donald trump, who has been at od

chair nominee would be. that sort of hobbles j powell's ability with the markets.tions would go to the other person is who is now speaking for trump and powell would have less ability to speak to markets going forward. there are ways for trump to undermine powell short of firing him, but i think you are right, this is a potential friction point going into 2025. >> let me show you what said -- powell said yesterday about trump's stated policies . if possible, his stated policies don't become actual policies but this is what we know. >> we just really don't know much anymore about the actual policy. it is very premature to try to come to any conclusion. no idea if it will be retaliatory tariffs. we just need to take the time and not rush and make a very careful assessment. the only one we have seen, what the policies are and how they are implemented. >> it is the $64 million question. we don't know much about the actual policies. you know, historically, neither does anyone at the white house because some of them are made up as trump takes in information and passes th

chair powell has done a good job trying to keep the sense of unity. that broke down this time in a big way. not only did we get four dissents including three from nonvoting members but there was a sense he was struggling to make sense of the very non-consensus on the committee. i want to understand who holds the keys to what happens next? who has the model the market can hook their teeth into? jonathan: where you think they are now? q1 worry about inflation, turns out to be a head fake. q3 worried about unemployment. write about the labor market. all of a sudden it feels like they have shifted back to inflation going into the new year. lisa: i don't think there is a consensus. that is why i think jay powell gave a very confusing speech that did not answer the question of why would you be wrenchingly up expectation -- larger be ratcheting up explain -- ratcheting up expectations for inflation -- this did not make sense but he was contending with the fact people were using a different model and questioning the data and there is this real concern on the

in terms of chair powell, i think what they're doing is rolling out this 2% target which, you know, i think is a little ridiculous. i mean, if we stay hard core to a 2% target, probably going to send this economy into a recession, maybe more. so they're trying to be a little flexible without saying that publicly in terms of the guide and the pathway down to 2%. i think what they did makes sense in terms of lifting a little bit higher. we've written to clients really since 2021 this current administration 6 trillion in spending, you know, the fed raised rates in 2022 which is what they needed to do and they got the rate of change down but the risk now in my view is that we see inflation start to tick up. that's not going to be because of the incoming administration but what we're already in the seat for right here. maria: he's trying handicap what's coming into things with trump and his economic policies and once again completely ignoring the tsunami of money that's been thrown at this economy under the biden-harris administration. evercore this morning,ever core isi writes with the fe

>> reporter: david, it was the message delivered today from fed chair powell. there will be fewer interest rate cuts next year than anticipated. that means borrowing costs, everything from a new mortgage to a car loan to your credit cards, will stay higher for longer, and that is what drove stocks plunging 1,100 points for the dow. the longest losing streak, as you said, since 1974, when ford was president. the fed acknowledging today that getting inflation lower, back to what we would consider normal, has been tricky, it will take longer. the one piece of decent news today is that the cut means your credit card bill will be a little bit lower next year, although it will be just a little bit. david? >> david: rebecca jarvis following the markets for us. thank you. >>> we turn tonight to the growing concern over bird flu right here in the u.s. tonight, california, in fact, declaring a state of emergency now, because of the sheer number of cases there. and tonight, the cdc now revealing the first case of severe bird flu in a human here in the u.s. abc's steve osu

fed chair jay powell is expected to take the stage with andrew ross sorkin, that will start a little later this hour. we'll bring it you live. andrew has a tendency to get people to talk. remember when he asked musk about advertisers at deal bok last year? stick around, we hope to get headlines. speaking of the fed, one of our guests argues there's no reason to continue cutting. another says if they pause, things could get volatile in markets. both are here to make their case. movement on the housing front. we have the latest on why housing could become a key issue on the trump and the gop. how is it looking? >> another day, another set of record highs. that's how things are looking. green across the board for the major indices as you can see behind me here. notably, for the s&p 500 and the nasdaq composite, both of these indices hit record intraday levels in trading and we are right near session highs for the market. the dow industrials, 44,891, up 1/2 of 1%. i'll get to the reason why, it's salesforce, but i'll give you more details in a bit. up 185 points, 1/2% away from record hi

chair powell may sound dovish relative to this consensus. veronica clark joins us now for more. ink it is important on any fed decision day, when people say i expect chairman powell to be hawkish, i think, hawkish relative to what? the last dot plot, maybe, is that how you think about things? veronica: i think the market has set a high bar. jay powell could easily under deliver. i think you have had data the last couple of weeks that will give the fed more confidence that the labor market is slowing and inflation is easing, and i think you will see that dynamic is evidence that rates are restrictive and they don't need to be. lisa: it seems you have simpatico with chair powell's view of the world which may be more negative in terms of economic trajectory. i look at data that people talk about showing resilience, and you point to all the reasons why you could interpret it negatively. what do you think the markets get so wrong? veronica: i do think that powell shares are more dovish sentiment. it comes down to the labor market for us, and everybody agrees on though hiring, still lo

fed chair jerome powell has said that he will not resign. he was very clear about that when asked.nd legally he doesn't have to. when asked if he would step aside. here's here's what he said. take a listen. >> some of the president elect's advisers have suggested that you should resign. >> if he asked you to leave, would you go? no. can you follow up on. do you think that legally you're not required to leave? no and, rachel, that sort of went on. >> i mean, he was very, very clear. but trump's promises in regulatory policy, like hefty tariffs, could make the job of the fed pretty challenging, more challenging. and his term doesn't end until may of 2026. so how do you see this playing out? >> well, there's one thing that president trump has forgotten a bit when he's promising lower mortgage rates, which is that he doesn't set them. he doesn't set interest rate policies either. there are actually a lot of home builders who are quite optimistic about his term. i talk to people all over the country who are excited about lighter regulations, what they think is going to be just a broader

with respect to fed chair powell and not wanting to risk -- radel anyone. also, not really giving any sense that he won't. >> absolutely. the reason why i've always thought that the powell thing was a nonstarter and yesterday i was proven right is that you can't rattle the senate who you need to implement policies, and you can't rattle the market who you need for confidence domestically and abroad. the whole powell gambit is a loser from that broader perspective. >> thank you so much. it was an nbc interview that donald trump was speaking on and it was the first. and honestly i think that was probably my takeaway. he wasn't really interested in rattling anything or shaking anything up in a material way. >> he is still getting his cabinet picks together. we are still waiting on a number of individuals he have to announce. on top of that, does tulsi gabbard still have this ability to get confirmed after what we are hearing is going on in syria? someone who went down and met with assad when she was in congress? it's going to be a very interesting week in terms

on nbc he laid out his policy ideas he will do something for the dreamers he will not fire fed chair powell and he will not appoint a special prosecutor to go after joe biden. no retribution, plenty of outreach to democrats. meanwhile the political map of the middle east has been largely redrawn. has sought has fled syria, he is now in moscow. several rebel groups to take over damascus, air attacks inside of syria even the president-elect trump says it is not our fight. a lot going on. to the market the major indicators at all very near record highs. 2024 is going to go down is a great year for most investors. they dow up maybe 40 points, look at the s&p it is up 27% so far this year, down a fraction of the opening bell and the nasdaq is up 32% this year, down maybe 30 points at the opening bell. interest rates are down. the yield on the ten year treasury is lower than last week, 418 right now in the two-year coming in at 4.12%, both lightly higher. but quite $98000, 989 and ch change. the price oil $60 a barrel. i want you to take a look at the price of gas. the national average for regula

between the fed and president—elect trump, there has been some feisty words exchanged between the chair jerome powellthere was a thought at one point that trump may try and remove him, how do you see this shaping up? i think president—elect trump has said he doesn't plan to remove jerome powell. and jerome made it clear that if he did try, he wasn't going. and now they seem to be on the same page. they did cut interest rates and president trump — president—elect trump is a low interest—rate guy and is consistent with whether the president wants the fed to go but he will get as much next year as i think he might like but my hunch is that the economy was doing reasonably well and the economy is doing well relative to the rest of the world, he probably won't focus on the fed too much. i wanted to ask you, christmas is coming, is the us consumer out spending, what do we know about that? so, the consumer is optimistic because retail sales have been stronger than had been expected. the consumer does not have as much savings as they once had because of the all government programmes putting money into people

right now, inflation has been sticky as chair powell said inflation department idn't keep down.seems to be in good shape and the economy is growing at trend. just as you saw they expect fewer cuts next year, i think you will hear more of that out of the first meeting. wait and see. you will not move as quickly to reduce rates and inflation looks to move sideways and not trending down. very cautious message at the first meeting reflecting what we heard at the end of the year. >> so, a lot of questions going into the new year. roger ferguson, thank you very much. >> thanks. >>> coming up on "worldwide exchange," the latest on the deadly south korean plane crash and the investigation including a focus on the boeing jet involved. you see boeing down 4.5%. we will have mh ucmore on this story and much more in the markets coming up after this break. ♪♪ well would you look at that? jerry, you've got to see this. i've seen it. trust me, after 15 walks, it gets a little old. ugh. i really should be retired by now. wish i'd invested when i had the chance... to the moon! unbelievable. stop

some comments from chair powell yesterday being seen as giving bitcoin some legitimacy, at least he didn't trash it. >> that's hilarious. i think it was the sec if the fed chair ends up being the reason we went over the edge, that would be ironic we are expecting to hear from president macron this hour yesterday, there was a no confidence vote on the government france is far from the only country in turmoil europe is facing problems with germany's problems bessent said he thinks le pen will take power. >> it certainly looks like so much of europe is leaning right as so many parts of the world are. i believe it was romania overnight where a right-leaning party took sort of charge of the elections there. there are currency issues affecting china as well. right now, king dollar is king >> for better or worse. >> we have great reporting coming up. thousands of millionaires don't file tax returns they don't file. it's only a misdemeanor. many gamble they won't get caught they dispense with it. >> i could never do this i understand that people want to say, okay, you have to come and get me most

the governor said he's very much leaning towards, the action from chair powell this afternoon. conference -- >> doing the interview for the summit so you will be hearing from powell providing clarity going in. last time we hear from powell because the fed does the blackout and won't hear more from third officials at the end of this week. neil: what does powell think, do you think of what the markets have been doing, it is one thing to go up but they have been soaring, always in the eye of the beholder but does that way on what he wants to do? >> i sat down with the federal reserve president william and i was asking him about what he was watching in the markets, he was watching the bond market which has been interesting, you cut rates and the 10 year treasury does what it does. it is a consideration. not part of the fed's dual mandate which is price stability but they are looking at all are factors. we did hear from black rock, they are bullish on ai which makes sense given the market and maybe a little less so on treasury. neil: things are so busy, we have more inflationary pre

how does this set us up, megan, for the comments of fed chair jay powell in about an hour's time?ll say he is data-dependent, we know he will resist commenting on what fiscal policy will look like in 2025. you will need to say something. -- he will need to say something. megan: i don't know if you will say a lot that will surprise the markets, because they need to hear it in a couple weeks. think what he will do is reiterate a lot of things he said the last time he spoke. i think he has to address inflation progress, kind of stalling as well. we can look on the ism services prices-paid component. it still remains elevated, and that is one of the sticky parts of the market powell has talked about that he is concerned, services, housing, wages. these are things that are really stuck and he can't do much about that. stocks are going to take their cue today if he doesn't speak and does anything to the bond market. yields are lower after the ism services report. you can't deceive the interest-ra -- you tend to see the interest-rate-sensitive sectors the market do well. if he does anyth

just yesterday at the deal book summit, fed chair powell said this about bitcoin. >> people use bitcoina speculative asset, right? it's like gold. it's just like gold, but it's virtual. people are not using it as a form of payment or sorry tore o value. it is not a competitive for the dollar, but a competitor for gold. >> that comment to it self was a move, not just for him, but for washington. i don't think you've seen a lot of policymakers, but this new administration obviously thinks of it as gold. we can talk about store value and whatever that is. the idea that if you talk to janet yellen in the old days or, you know, ben bernancke with the interviews about crypto. >> if you get people begrudgingly admit it is like gold, gold is the most basic store value for years. >> if you listen to it, you asked him specifically is this like the dollar. his point was no, this is not a currency. it is not a dollar. people are not using it to go out and buy things. >> not now. possible it is infinitely difficult divisible. >> for now, you wouldn't use it. you think the value is going to climb, yo

less so than looking at what chair powell said and being upset, i think we are starting to see pricingn of what if some of the economic theory is right and inflation does come back and it's not two cuts, it's zero or maybe a hike. that's what folks are really reacting to. at least i hope so. >> the hike. the wobble with the hike. that will be interesting. i'll get my tin hat. alex, thank you for joining us this very early in the morning. have a brilliant christmas and new year. i'll speak to you next ear. alex morris. i did something brave. i wept to the airport. i was picking something up and it was heaving. it was the sussex irport. nearly 6 million passengers from the uk and 54 million from the u.s. flying out for the holidays. i might fly out. don't tell the family. monica petrelli has more. >> reporter: most will head home for the holidays, but others on the move as well as places that are seeing an uptick in year end visitors. in asia, the story is dominated by japan. among expedia destinations among travelers from hong kong, seven from japan among hiroshima. then the island of p

yesterday, the fed chair powell said gold is in direct competition with bitcoin, which has been soaringw records. >>> your thoughts on gold? i think you think it's a good time for gold. >> i do. i think it's a misread by the market of what it means to have president trump having an affect on gold. people think that this is a strong dollar trade when president trump comes into the office historically, president trump is a marketalist. he believes in lower i er inte rates. that bodes well for gold gold is acting very much as a sovereign debt henl.dge. we have budget deficits in the u.s. and very, very serious problems, that could possibly create a collapse in the euro zone as far as the european economy, all of those things bode well for a position in gold at this point. >> thank you very much have a great weekend >> thank you >>> you can always catch three stock nch by following our podcast on any platform you listen we will be back after this since starting the farmer's dog, bogart has lost so much weight. and he has so much more energy. he's like a puppy again. ♪ (banjo playing) ♪ c,mo

eastern time, followed by the news conference from chair jay powell.n "bloomberg today," citigroup's veronica clark spoke about expectations. >> the market has set a very high bar on how hawkish powell can sound. i think we have had data in the last couple weeks that is going to give the fed more confident that the labor market is slowing, inflation is easing. i think they will see that dynamic as evidence that rates are restrictive and they don't need to be and we can take rates lower. scarlet: i'm pleased to say joining us now with what she into debates -- what she anticipates is betsy duke, a former fed governor and chair wells fargo. always a pleasure speaking with you. the market has priced in a 25-basis-point cut, pretty much a done deal. my question to you first and foremost is should it be a done deal? is there a case to cut rates with the economy where it is at right now? betsy: i think it is a done deal. first of all, if it wasn't, you would've had some signaling from somewhere in the fed, somebody would've started talking about maybe it wasn

we beat inflation and the chair powell is really mindful of the mistakes of the 1970s, and he's really thoughtful of not wanting to be there and repeat that. so i think this air of caution will be louder tomorrow, and i kind of look forward to seeing what they say about inflation for sure >> all right >> united health has continued weakness a major driver of the dow's longest losing streak since 1978 he's tumbled more than 20% so far just this month alone, so where does the stock go from here what's the prognosis steve grasso, what are your thoughts here? >> in light of the events that have transpired and the bipartisan effort to really go after health care companies in general and in particular united health care. i think you'll see larger payouts from the group as a whole and larger payouts are going to squash profits and their margin so until we get more clarity, i think it's sort of a no touch for me >> yeah. there are a lot of different aspects of legislation that are trying to make their way through that would target the pbm business specifically. >> which is different than what