eastern time. >>> coming up next, much more from our special guest philadelphia fed president charles plosserl hoops edition of this segment. >>> we have green arrows. thank mr. plosser for that. back in a moment. ♪ ♪ [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the country's largest petrochemical operation. ♪ when emerson takes up the challenge, "it's never been done before" simply becomes consider it solved. emerson. ♪ emerson. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. >>> welcome back to "squawk box." we're getting back to our guest host, philly philadelphia president charles plosser, but first, steve liesman is here. >>> we're launching later this morning what we call the cnbc rapid update powered by moody's analytics, a way to put dizzying amounts of data into context. we'll poll seven top wall street economists, including bark clays, deutsche bank, moo

the philly fed president charles plosser cnbc exclusively.xtreme wlb has been clouding his readings. >> the data, as you pointed out, has been very noisy. we've had storm after storm particularly on the east coast and they've got drought in the west. it's been difficult to get a decent reading on the economy. >> david cameron arrived in brussels a short while ago. he said we need to make sure that we get russia and the ukraine talking. we need to send a very clear message to russia. but their actions are unacceptable and they must expect consequences. but he is hopeful of a positive outcome, as well. the russian prime minister is not expecting action to be announced against russia today. >>> and with that back drop in brussels, let's find out what's going on in the russian capital of moscow. jim maceda has more for us right now. jim, how do you think they'll react to whatever comes out of brussels? >> well, the russians are going to react negatively to anything positive coming out of brussels. i think they're watching the eu leaders meeting t

philly fed president charles plosser will be a guest host on u.s. "squawk box" today from 7:00 a.m. eastern. you don't want to miss that. still to come, greece is turning to anger. people are marching on the embassy in beijing wanting more answers. answers. >>> kwek check of the headlines, g-7 leaders threaten russia with more sanctions. chinese families demand more answers on the missing air malaysian plane as poor weather slows down the search. >>> and u.s. cloud company box files for an ipo looking to raise around $250 million. relatives of chinese passengers on board flight mh-370 have marched on the embassy in beijing demanding more answers about what happened to the flight. this as is temperature for debris has been halted due to bad weather. sri has more details for us. >> ross, that's a -- of grief, sense of denial. all those emotions are fast turning into rage now, especially -- chinese relatives on board mh370. we have a statement yesterday from the prime minister about the plane -- and he didn't use the word crash, but he did say it did go down somewhere in the southern i

wanted to talk about what charles plosser the philly fed talked about this morning.3% his funds rate forecast in 2014 and 4% in 2016 so he's the hawk that we thought he was going to be. let's listen to what else he said about rates that were out there. >> i don't think the fed changed its position. i think it tried to say very explicitly in its statement we believe the forward guidance or the expectations have not changed as far as we're concerned. i think what you need to do is pay attention to what she said after her reference to the six months which was it was going to be data dependent. it would depend on the outlook for inflation and the improvements in the labor market and those were the things that would dictate when to raise rates. >> near term it's a dovish comment from charles plosser, longer term he went on to say, hey, we may be forced by the market be higher than we think right now but near term making the point that janet yellen did not mean to change the fed's guidance on rates. simon? >> it is inevitable that they're going to err on the side of cautio

but philadelphia federal reserve bank president charles plosser says that timetable for ragz rates may be a mistake. >> if the market gets ahead of us, i've often said financial markets aren't always patient. if they get ahead of us then we'll probably have to be faced with a situation we'll have to raise rates faster than we otherwise would have chosen to do. and that's one of the great unknowns about this whole exit strategy. >> he's also forecasting solid growth in the u.s. economy over the next two years, a pace of 3% in 2015, 4% in 2016. >>> with general motors under scrutiny for what it knew about faulty ignition switches that resulted in a dozen crash-related deaths and when it knew it, some lawmakers have introduced new legislation to make sure there's better#gñ reporting of auto safety records. senators ed marquee of massachusetts and richard blumenthal of connecticut introduced a bill that would require automakers to provide more information about fatal accidents involving their vehicles and give the public better access to those reports. >>> the supreme court says that sever

in an interview with manus cranny, federal reserve bank of philadelphia president charles plosser saidt positive economic data is not enough to change the pace of the tapering. be a little bit humble about how much we can indicate how we are going to behave in the future. because things change and people change their minds and things happen. i think commitments are important. i would like us to begin moving toward a description of our reaction function. data, weng of economic found out friday that the u.s. created 175 thousand jobs last month, better than expected. but despite the uptick, one problem persists -- the continued growth in the long term unemployed. congress has failed to re-extend jobless benefits to them, a move heavily criticized by the white house. >> this does not change where i think the economy was compared to when benefits were first expiring and we said when they were first expiring we needed to extend them and congress needed to act and it was crucial both for the economy and for the family to receive the benefits. that is true today. ort -- month to month there i

talked to charles plosser. what were his main messages? good numbers that we saw on friday. he does not look at one number. he did say we should not be -- in terms of policy when it comes to moving on tapering. it would have been nice had we started at a faster pace. that is a hawkish statement. we are coming off of soft members when it comes to the wage numbers. wage rises not a great indicator of inflation. where does the federal reserve go in terms of their policy for forward guidance. unemployment rate picked up slightly and give a little bit of room to breathe. charles loss or was clear -- we need to get humble. >> we have to be a little bit humble about how much we can indicate how much we're going to behave in the future. things change and people change their minds and things happen. i would like us to move towards a description of our reaction function. >> it was a long ranging conversation. --n we got to the issue of part of what i have been reading is that rate hikes will come through in 2015. could the fed go earlier? he was very clear, go through the taper first

welcome back. >> nice to see you. >> when you hear charles plosser, what do you think?it's a nice intention. i think it's a laudable intention. the fed can't know, it can't predict the kind of consequences these extraordinary, unprecedented monetary actions will have. as it is, there are plenty of examples of markets that i think are distorted by low interest rates. it stands to reason that if the rate at which you discount the value of capital assets is itself suppressed, then the value of those assets will be correspondingly inflated, and we see that in biotech. we see it throughout the credit markets, junk bonds, leveraged loans and the like. you see it in real estate. mr. plosser says if the fed sees evidence of excess in the financial markets, it will react. it seems to me if the fed chose, it could see those examples of excess right now. >> but why when you look back at the last time the fed raised rates in 2004 or throughout that whole cycle, you know, stocks kept moving higher at that point. in other words, that was not the end of the rally. why is that the case

charles plosser was our guest host yesterday here on "squawk box." to snap a two-day losing streak after a stronger than expected jump in consumer can confidence. the dow added 91 points to close at 16,367. the dow was up higher, triple dimt gains earlier in the session. the s&p 500 also up, adding 8 points yesterday while the nasdaq added about 8 points, as

charles plosser said the fed might have to quicken its pace as the economy picks up its pace. >> theres a lot to lose. then bernanke made that clear under his regime. he expended a lot of clinical capital to make sure his legacy was one of success. the he was going to save u.s. from deflation and everything the fed has done over the last few years has been to that end. janet yellen was standing by his side when i was taking place. there is almost a case where they are willing to accept a little inflation risk. there tried to generate recovery that is irrefutably solid and they can then start tapering. they will start to quicken the pace when they believe that is insight. >> you are looking through the weather. you are suggesting it is all weather-related. >> i take janet yellen at her word. see -- she seems to think there is a fairly hefty element. figures,look at the how the participation rate varied at the end of last year, i think you suspect that if we get a mediocre figure, that is not going to be enough to prompt the fed to accelerate the pace of tapering. i think she will want t

. >>> charles plosser will be appearing exclusively on "squawk box" europe on tomorrow at 8:30 a.m.rly bird or up late on the east coast, that will be at 2:30 a.m. eastern, ouch, but we would love for you to join us, naturally. >>> quick check on the u.s. futures this morning, trading slightly to the weaker side, you can see. but very, very minor losses as far as the markets are concerned. strong gains for the markets yesterday so a bit of consolidation here. jeffrey is still with us, of course. what are your expectations for the adp numbers later on today? and will it move the market? >> probably in that 150 to 175,000 range for payrolls. i don't think it's going to move the market. lately, the data has been better than expected. sp expectations got pretty low. weather has been an excuse. we almost got a free pass on the economic data here. if it surprises to the upside, i think the markets will take that seriously. stocks may rally a little bit, although they've captured a lot of those gains already. but the key here is even if the numbers come in very weak, well below that 150, 1

. >> i was actually surprised, and we're going to have charles plosser on tomorrow. i was surprised both he and richard fisher signed onto that statement. for me that one line about not being at normal rates if the economy is normal sort of stood out. i was surprised to see them sign on. i think there's some questions. i agree with what jeff is saying to a point. jeff, i think the fed has done a remarkable job at guiding the market through '14. there's a big question about what happens in '15. i think janet yellen stumbled a little bit, but so did bernanke in june, and it's going to take a couple iterations for them to get the communications right -- >> and i think it was a very big deal when they changed the 6.5% unemployment rate target because it was a very big deal when they implemented it. this was new ground and this was something charlie evans was adamant about and he had pushed for this for a couple years for them to do the 6.5% and -- >> and they dumped it for uncertain chalanguage. we don't know what that new language means. >> it depends is basically the a

tomorrow, charles plosser, president of the philadelphia fed. how old are the twins? >> 3 1/2.if you can hang on. >> he's young. weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next. >>> welcome back. you are looking right now at a live shot of universal studios in orlando. take a look right there, right now. >> wow. >> coming up next, we have the trading block. how much more volatility will the oil markets see now that sanction have been slapped on russia and what will your local mall look like over the next 25 years? brick and mortar stores disappear. we have that story coming up in the next half hour. back in a moment. [ male announcer ] what if a small company became big business overnight? ♪ like,

also in europe this morning, philadelphia fed president charles plosser pointing at the weather for a blurry economic forecast. >> as you pointed out, it has been very noisy. we've had storm after storm after storm, particularly on the east coast. it's been very difficult to get a decent reading on the economy. i think it's important that we sort of take a step back, be patient here, and not overreact to what's going on because we just don't really know for sure yet. >> the fed beige book yesterday citing the weather's impact on the nation's economic conditions. we'll see if weather is a factor in today's collection of economic reports. at k8:30 a.m., we get weekly jobless claims. the economy is expecting a reading of 338,000 to 348,000 we saw the week before. and at 10:00 eastern time, the january factory orders report will be released. that's a decline of 0.3% is what economists are looking for there. treasury secretary jack lew will be on the hill today testifying on president obama's new budget. that's coming at 9:30 a.m. eastern time. right now, let's get to andrew with some of t

charles plosser was our guest host yesterday here on "squawk box." the markets managed to snap a two-day losing streak after a stronger than expected jump in consumer can confidence. the dow added 91 points to close at 16,367. the dow was up higher, triple dimt gains earlier in the session. the s&p 500 also up, adding 8 points yesterday while the nasdaq added about 8 points, as well. if you take a look at the futures this morning after those gains, you'll see there are still green arrows indicating a higher open, as well. dow futures indicated up by about 44 points. s&p futures indicated up by close to 5 points and the nasdaq is up close to 14 points. an rue, i'll send it back over to you. >> let's talk about the deal of the morning. facebook is now getting into the wearables market. the social media giant acquired a company called oculus vr for about $2 billion. they make virtual reality headsets. their main product called the oculus rift is primarily used for gaming. mark zuckerberg posting a statement on facebook saying after games, we're going to