on assignment with london with c evans of the chicago fed.readjustment, a recalibration. futures up five. dow futures up 40. this is "bloomberg surveillance." stay with us. ♪ tom: breaking news. became for what you wish for in terms of the exogenous shocks. haschancellor of austria stepped down. the party chairman. much more on this throughout the day, but there is somewhat of a surprise that you would see maybe folded into the economic quiet of the recent quarters. a monday,report on not much going on. we are going to make and vanilla. the yen weakens nicely now. 108.00. and the sterling as well, just a jumble within fx this morning. debbie west and a jon ferro -- mr. farrow jobs the conversation to what do you have? jon: more on australian politics as the chancellor steps down. the longest serving leader in the -- more on the austrian politics as the chancellor steps down. the longest-serving leader in the european union. s far as the markets are concerned, i call it federal confusion. a lot of people do not expect the fed to do anything ne

. >> kashkari's colleague charles evans of the chicago fed agreece with the current wait and see approach to raising interest rates. at a conference in london, evans commented on the divisive political environment and he said there has been less fiscal policy support for the economy than he would have liked. when asked about the presumptive republican presidential nominee's comments on debt, evans said, maintaining the full faith and confidence in the u.s.'s ability to service its debts was "unbelievably important." >>> today donald trump said the u.s. will never default on debt "because you print the money." the comments came as he tried to clarify his strategy for managing the national debt which seemed to suggest over the weekend that the government might not pay all of what it owes. john harwood is in washington following all of this for us. john, mr. trump seems to be doing a lot of clarifying lately. >> he is. those comments about getting a discount on u.s. debt reflect the lexicon of a businessman who's used bankruptcy law, who's negotiated deals. it simply doesn't apply in a gover

you look at the chicago fed, national activity index to gauge what is happening. guest: we used to call it greenspan this brain. data,y data, weekly commodity prices. , the economy is growing around its trend. we just saw the french come out. it's a small positive. nonetheless positive after being in that subzero territory. the first quarter growth was significantly below trend. it is now suggesting we have a good start to the second quarter. growth is picking up nicely. joe: where do you see the bar for the june rate hike? there is this view that the june -- the june rate hike is on unless it doesn't deliver? what would have to happen? guest: steve stanley, our chief u.s. economist is looking for to handle. their estimate of gdp growth is lower than it was before. growth isotential gdp 1.5% in the u.s.. has beenloyment rate averaging two and a quarter. the magic number is now 2. they want to normalize rates. as long as they get a to handle, it is -- that is where we go. alix: we've seen three years of first-quarter numbers only to head into the second quarter exp

torsten: the chicago fed said that one of the numbers to keep the on employment rate constant is 85,000farm payrolls. if we go below 80,000, then we really have a problem. 160,000 is well above. it is getting closer down to where we should be, but i would still say that we are moving closer to full capacity. that is from the fed perspective the most important point. amanda: this level of uncertainty is unusual. is the fed mismanaging the root to hire? are they doing it for job of communicating the trajectory? torsten: they've been way too optimistic for several years, basically since 2010. they said that growth is coming and it did not arrive to now the markets are saying i made money that it's not arriving, so why now? amanda: it is interesting to see bill gross calling for a hike when he has made the wrong call for a long time. fedten: that is why the folks are somewhat frustrating that markets are not listening because they really do feel that it's coming now. we're getting close to full employment. there's an interview yesterday that said do not put too much weight on that because w

. >>> chicago fed president charlie evans said the congress must do its part if the fed to normalizess could have been done sooner. >>> a developing story out of canada impacting the oil markets. a massive wild fire consumed at least 400,000 acres and it continues to rage. the cooler temperatures and light rain have officials feeling more optimistic they may be able to get a handle on the country's oil region. more than 80,000 people have been evacuated from fort mcmurray once known as the canadian oil boom town. the fire destroyed 1600 homes and buildings in the region. officials say there's no time line to return residents to the city. >>> captain america civil war soaring to the top of the box office this week. the disney and marvel movie grossed $181.8 million this weekend. captain america played by chris evans clashes with robert downey jr.'s character iron man for a super hero show down. >> i don't get it. they should get along. >> no. there's a reason for it. if you saw -- i didn't see the movie but if you see the previews it's over a friendship and captain america is trying t

. >>> coming up, feds in chicago police. teaming up to help stop gang violence in the city.n and what they were able to pull off, next. where have you been? i had to put on my jeans by myself! i am so sorry. this personal essay is way harder than i thought. it's just not in my nature to brag on myself. not even a backdoor brag? what's a backdoor brag? sneaking something wonderful about yourself into everyday conversation, like when i tell people i can't watch musicals 'cause i have perfect pitch. (announcer vo) some carriers promise unlimited streaming, but then shrink your videos so they're not hd quality. it's not pretty. switch to verizon now, buy a galaxy s7 edge and get one free. plus up to $650 back. only on america's best network. >>> moments ago, president obama departed andrews air force base. he's leaving for a week long visit to asia beginning in vietnam. the president's trip includes a historic stop at hiroshima, japan. the site of the world's first nuclear attack. >>> a man is in custody after ambushing a maricopa county's sheriff's department friday. he fired m

chicago. this themeking about -- don't fear the fed instead of don't fight the fed.see this rally even in this a fed increase. it you say you are not quite sure you believe the rally. what do mean by that? guest: yes. the bond market is started, but the market has gotten a little ahead of itself. the s&p is holding out hope that there is no rate hike which, maybe they are able to raise in july but probably not. that is not going to raise rates during the election cycle. i think that's a little where this is coming from. we have non-farms coming up and i think that could throw a wrench in this rally we have going on right now. what are you looking for in that report? guest: we have already kind of taking -- taken the week off. vix has price itself down to our needs to be. coming in wednesday, you will have people starting to worry about nonfarm payrolls and people coming back from vacation thinking about the federal reserve. we have had short covering because people don't want to be short over the weekend and you will see people thinking that things move a lot quicker

. >> reporter: fed up by this extremely long security line, this passenger at chicago's midway airport shot this youtube video. he followed the line down hallways, corridors, and around corners. it's gone viral in the last 24 hours racking up more than 1.7 million views. at mineta san jose, passengers are seeing the same kind of monster security lines. it even put up these signs to call out the tsa. >> i fly in and out of san jose every friday. and the lines are pretty long. i haven't seen them this long forever. >> reporter: people have been ranting about missing flights at major airports across the country on social media. this week, a travelers group called airlines for america started the hashtag, i hate the wait. this passenger tweeted, cattle call insanity in orlando. >> effective immediately, we're maximizing the use of overtime for our tsos to meet the demand at screening checkpoints. >> reporter: today the tsa outlined plans for hiring more than 700 agents this summer and adding k-9s at the airports ahead of the summer travel season. it says the delays are caused by an 8% incr

you know, the feds have rushed in some resources here to chicago o'hare.ozens of extra workers both full-time and part-time. five additional k-9 units. earlier today we saw that allowed people to get people through security faster. but right now as you can see, it is not necessarily working in this moment. the tsa has acknowledged its problem. it has taken responsibility for this but, you know, we've talked to some frustrated passengers who say tsa should have seen this coming. take as listen. >> i think it is absolutely ridiculous that this happened in the first place. i mean they should have foreseen people weren't signing up for precheck. they should have waited until they knew how many people were signing up for precheck before they fired all of the staff and then this problem would have been easily avoided. reporter: so we are still walking this line and we have not even made it to the entry where you give the worker your ticket and your i.d. so you can just see how huge this thing is. you know this all boils down to the tsa being understaffed. the ai

technical level so you don't go in the face of stanley druk en mckenmiller and fed funds and the expectations here in chicagoor the june rate hike is 12%, and therefore the dollar should be stagnant and allow the gold the go hi higher. >> for more on gold, go to website of futures.com/cnbc. and we have peter schiff to talk about why donald trump revealed america's little dirty secret on "squawk box" and why paul hickey believes that stocks are ton th upward trend. >> and stan is one of the best. the bull market is exhausting itself. get out of the stock market. gold remains the largest gold allocation, the fed has no end game, they are obsessed with the 20% drop in the s&p and if the stock market is the future, we should be selling at a discount right now and not a premium. thoughts? >> well, provocative thoughts. >> yes. >> and well, listen, it is provocative and a lot there that most of us agree with, but overall the tone yesterday, and for pete and i were there, and you were there for most of the day, and i think that everyone was very, very pessimistic and bearish as it relates to the economy and the sto

chicago. thank you for joining me. stocks are taking a leg down on the fed minute. taking a hike would be appropriate in june.r initial reaction? >> the fed is confused on what to do and we get mixed messages all the time. chairs getting different coming out saying we should and should not raise. he says he thinks they should raise. they are trying to if they can. they probably will not be able to do it for the rest of the year. caveat is if they exist or if they want. do they want? >> i think the economic conditions are terrible but i thought so then as well. you see the declining retail sales and you see the jobs. the number may be good but look at the wages. the lowest participation rate since 1974. i see a lot of free money and you have got a lot of these companies and a lot of problems here need to be fixed. the only way through the economy is if they let the often are into her might. it is hard to borrow money right now anyway. >> let's talk about fear. throws right when the fomc released the minutes. what is there to fear? >> is the motion of human traders. the vix is in what we call consolidation for

alix: they say to fed hikes are possible this year. joining us now from chicago is the president of the onkyo research. what do you think? jim: zero hikes this year. we respectfully disagree with them. i respect their opinions. the fed has not raised rates without the market pricing then. june is a 4% chance for and a 30% chance for september. the market can change its mind and pricing in. if it doesn't, they won't move. that's been the history of this fed. they came to market expectations time and again. take -- alix: look at the functions on bloomberg. we don't see over a 50% probability of a rate hike all the way out through february 2017. scarlet: that's not the first time this is happened. what do bill gross and others get wrong when they say the fed will likely move? jim: i think they've got a different view than me. i think their view is the economic data will get better. it will move the odds up and justify a hike. i just don't see that right now. i think the economic ada will stay mixed at best. i think it will keep the fed on the sideline. in the econom

charlie evans out of chicago said today that he felt that the feds should actually target overshootingnflation. so it's one of the first times you've heard a fed president say we're willing to target it in order to ensure we have a see men trick average. >> i thaumd caought kashkari sa something like that. hang or for a moment. let's head over to seema modi. >> they're announcing a secondary argumentative. in addition to that con edison, they're offering 1.32 additional million shares. offering is being made in connection with the agreement announced back in april by this year to purchase an energy interest but is not on the complex of a purchase. there you go. down 2% on the secondary announcement offering, kelly. >> thaerngnks, seema. guy, good time to do that. >> when they priced their secondary looking where steel stocks have been, i think that had a ford dollar handle and you go back to where it traded five or six years ago. i say good for them. you might get a good opportunity to buy something on the cheap here. >> there you go. keep an eye on it. thanks for joining us. >> right

chicago -- charlie evans say just last week they thought -- the fed should try to overshoot on inflationtually agree with that. we learned over time that fred -- said credibility matters quite a lot for taking inflation expectations. and the fed has been saying year upon year our target is 2%. and then they hit 1%, 1.3%. i think to repay expectations, you've got to get above -- you've got to show to the market, to the world that you connect to get to the target and not take seven years to barely inch your way to it, but say 2%, we when we are going to get to percent or more. is the course set on weakening their authority? austan: i think it already happened. we have been going for 6, 7 years of the same dynamics, where their forecast says it is going to be good. they say we will have 2% inflation and then we don't hear -- don't. i think that has undermined them somewhat badly. i think it has affected them some. road,the rubber hits the the problem that raises for them is that, when they change something and the market won't believe them. that is the case like now. they are saying we are

fed holding off on rate hikes. charles evans saying earlier of chicago federal reserve, we should wait and see. that and changing landscape and global oil production, markets are driven by emotion rather than fundamentals. with all the emotion how should you track the tricky waters. steve due dash has more than $715 million in assets. steve are talking about what they should listen to. i need to back this in. what are two things they should ignore investing for the second half of the year? >> okay. this isn't easy to do but you have to ignore politics going on because we're going into the summer. you know it is doing to be a circus. looks like we know the who two players are. they are very polarizing. every time they say something specifically. trump says more things that are bold that can drive the market next few months. you have to be able drown out that and look at fundamentals a possible. then oil. oil will be the story all year. it was all last year too. saudi arabia versus the frackers, it keeps going on and on. you won't see $100 a barrel oil again. but you won't see it in the 20s. look

chicago. six-week lowther and a lot of traders are concerned about the rising probability of a june fed rate hikebut do you think they are warranted? talk to me about that. >> in fact, this morning there was a heck of a lot of fear in the market when we broke that 20-40 support level on the s&p. we saw a lot of rolling of positions. but now that we are back above and kind of heading right around that support level it will be interesting to see -- i think this is more of a recalibration, that we maywboning be raising rates, rather than the beginning of something sinister. right, talking about recalibration, do you think it is similar for the vix as well? it is now about 17.6, last i saw. what are your thoughts on that? tim: yeah, absolutely. the vix is back to that level it probably should be. 16 to 18 should be the regime of volatility through earnings season, again, fourth quarter in a row we had the earnings recession. basis,mparative insurance should be pricey. plus you have copper, which is normally a harbinger of economic activity, three-month lows here. that is diverging from the market as

chicago pmi and consumer confidence for may. on wednesday, we get the ism manufacturing and the fed's beige book law on thursday.riday, it's the big one, may nonfarm pairls along with the ism services index. lots of data to watch this week. let's switch focus. the past week, coca-cola enterprises shareholders approved the merger with two bottling companies. that deal creating the world's largest independent coke bottler. it will start trading in new york, london and amsterdam. and joining us from amsterdam first on cnbc, john bock, new ceo. very good morning to you, john. thanks for joining us. congratulations with closing the merger with your other europe mean coke bottling companies. the question is, to what extent has been this merger forced by coca-cola, the company, because in the need of slightly declining sales? >> well, first of all, let me say it's really exciting to be here with you today from amsterdam. we'll begin trading shares later today. it's a beautiful day and it's a cause for celebration. and we're bringing these three already significant bottlers together. coca-cola enterprises spain and germ

i hear todd yelling from chicago, as he has been -- [laughter] but i still don't see. the fedta dependent right now, there's nothing out there that tells me we're in a recession. earnings could have been better -- stuart: going towards it, that's my point. >> tough to predict the future. right now we're not in a recession. look at ford's numbers this morning. i don't see signs of recession. you want to talk about not great growth, i'll give you that. stuart: todd, i'm going to give give -- get to you in a second, general motors -- >> they are down 3.5%. ford, a as we reported earlier, was upoverall 4% year-over-year. ford explorer in april up 22 percent. sufficients, sales -- suvs, sales best april ever, the ford f series, up 13%. so you've got your trucks and your suvs for ford doing very well. stuart: and car sales down, and general motors' sales down overall, 31. let's looking look at mcdonald'y very well be the turn-around story of the year. we have a market watcher. he walks into mcdonald's at 5:00 in the afternoon. everybody -- or, actually, precisely, he said, half the

chicago. hey, rick. >> good morning, carl. it's funny you mention a lot of action. normalization of the fede things coming up between brexit and elections, find it so interesting that regulators of course again talking treasuries in the year ago october flash crash, everybody is a bit nervous or is it the market just isn't the same? because nothing's the same in treasuries. year-to-date two-year to date, short led everything hotter, hotter cpi. that cpi up 0.4 was the hottest it's been going all the way back to february of 2013 when it was up 0.6. and industrial production up 0.7 today. said march it was november of '14, but all solid data. intraday ten on the data i talked about 8:30 eastern that's when ten-year made their high yield of the day. year-to-date clearly reveals how the long end is a little different than the short end chart i started with. 2s haven't closed above 80. they're at 80 right now since february 27. these 10-year yields recently like 30-year yields, everybody is talking about the yield curve and it is interesting, but do the singles mean what they used to? 10s minus

that is what they threatened to do to a school in chicago yesterday. 50 families filed a federal lawsuit against the department of education, because the fedsou will let a boy in the girl's locker room and if you don't, we're going to yank your funding. stuart: so, all public bathrooms have to change to become unisex? is that the end of the road here? >> that is the endgame here, stuart, that's why we're seeing stories pop up in small towns and community, department of education once they get wind of this, they come in you change the rules to comply with our transgender policies or we'll take away your federal funding. remember what president obama said when he campaigned for his first run in office, he said he promised to fundamentally transform the nation. stuart, this is how he is doing it. stuart: stuart, got that right. throwing light on that, thank you, todd starnes. less than 24 hours after donald trump became presumptive nominee, he release ad scathing attack ad, using republican voices against trump. we'll play all of it, i should say next hour, all of it. >>> plus out-work coal mine they're confronts hillary clinton. hillary offer

fed up what is going on, they are taking to social media. brian tweets: knowing there are women with crying infants waiting in line for two hours right now the chicago. laura says, she got there five hours ago, had a boarding pass, been on standby for three other flights. so she is clearly upset. ashley was waiting in security line for an hour and 45 minutes. he mom missed a flight earlier and had to weight two and a half hours, and shelby says thank you, united, for delaying my flight for no reason so missed the entire st. louis blues came. >> the more people who speak out, the more pressure. >> hash tag i hate the wait if you're so inclined. i'm joined by matt finn at o'hare airport. explain what is causing these long lines, why now? what's different? >> reporter: well, congress and the tsa axed 4500 jobs and still letting go 100 a week. part of the idea there was that the tsa precheck option would help alleviate the lines you are seeing behind me, but so far that has not happened. so now here in chicago, american air said for the first time ever it had to put out cots last night and this morning because people were missing flights because of tsa

fed. i want to bring in dan to talk about totally unrelated story. you guys in chicagohuge problem with security lines at o'hare. hundreds of people sleeping on cots. is that the story of the day in chicago? >> absolutely. the thing that leads on the news and plays 5 or 10 minutes. i went to a midway report a couple weeks ago and it wasn't so bad but i went at a nonpeak time. a friend who flies regularly has the tsa check and he says lines are unbelievable, has never seen them so bad. they have to figure out a solution. stuart: our viewers are looking at video of chicago. the line goes on orever. what surprises me is no riots. >> you will see these lines at 3:00 in the morning at the same airport in o'hare. ashley: the attacks in belgium keeping us safe creating a condition that will be a prime target. ashley: you are right. let's get to the fed. they released minutes of the april meeting at 2:00 this afternoon. that could move the markets. in advance of the release of that report we heard from a lot of fed governments which are suggesting we will get rate hikes this ye

fed. i just want you to follow me a second. this pit's pretty darn busy. they talk about pits being dead in chicago.ort rate 90 day forward for the libor. the reason i bring it up, a lot of activity today. why is that pit so interesting to me? as i look up, the futures the options are associated with are up 3 or 4 basis points in price today. as i look at fed fund futures, they're up a little bit in the front but the further back you go, for example, as i look at october, it's up 1.5 points. what happens when these short rates move up and fed funds move up? it diminishes the possibility of a fed rate hike in the eyes of investors that are doing the trading. granted it could be that it priced too far and it's short covering, they're lightening up. but no matter what the reason, if you're not as aggressive looking for fed tightening things change. why is this important? i'll go to the topic i was planning to use today. it's all about divergence, not the movie, central bank policy. we've seen a lot of guests today talking about things i like to talk about, the relationship between our yields and bunds,

fed is singing in unison. they are saying "you have to get used to the idea that we are going to raise rates slowly." you're based in chicagoway away from the microeconomics of chicago and the theoretical in a mix -- theoretical economics in the east coast. are we going to move out of all of this with each -- with a smooth wide path where we have abrupt brutal moves in market? >> the fed is attempting to make this smooth, but the fed moved in december. we are dealing with this geopolitical and economic environment that is fragile. we didn't hear a lot of economics from president obama this morning. the issue is geopolitics and policy are now economics. those can affect the economy quite a bit. the fed and the u.s. live with a stronger dollar? >> they are going to have to. the issue is how long can they take a stronger dollar? a little bit of appreciation is not a major change from what they have seen. the problem is if we had a sharp appreciation in the dollar from here, so it is really a matter of magnitude. the fedother reason why wants to move very slowly and have this be a nonissue. you were talking about your guests fr

fed. the reason there are three volumes to settle that minor problem, because the second volume was so big that the university of chicago press decided to publish it in two parts. [laughter]. another return return to aei for federal reserve policy i owe tremendous debt to chris demuth who was president of aei 14 years i commuted here from pittsburgh. i don't think there is another institution of its kind would have supported me for 14 years and hired extraordinarily good research assistants to do the legwork of going through the enormous amount of material that there is in the fed records. so i owe a great debt to my friend chris demuth and to aei for making that book possible. i'm very pleased to discuss peter's book on fed power around independence. let me start with some parts of the book that like most. the fed is political as well as an economic institution. it can't be in washington without being a political institution. the book appropriately is work of political economy. it gives much attention especially to the role of the president. the answer to the question that peter just gave which said it is impossible to

chicago. steesh gra steve grasso, you were talking yesterday. we have a pretty good cushion over that today. >> we do. flat on. i mentioned yesterday the fed has the inside track on the polling data for brexit and that's not going to be a hurdle for them if they wanted to go in june and no later than july. i felt like they wanted to stay away from that political cycle. june, july, it doesn't matter to me. it matters to the market and the fact that the dollar's rallying, crude's up. this definitely feels like a risk-on trade for me. but look at the housing data. maybe you play it through ford or gm. the follow-through would be the ford f-1 50rks the silverados, but those are really if you think of comeback in construction and a comeback in growth, you want to be buyers of those stocks unless this is just a knee-jerk reaction and we sell off in the next couple of weeks, which i do believe we're at the top end of the reins. >> that brings us to the question do you think the stocks will anticipate a rally? >> sure. why is the fed raising rates? because the economy is getting better. the real question is how many times are the feds going to rai

chicago with the latest new home sales levels. rick. >> yeah, carl, i have some weird data coming out here. now, minus one on the may richmond fedndex, minus one lowest level since the minus 4 we had in february. but here's the surprise, even a shocker. let's look at april new home sales. 619,000. that's seasonally adjusted and annualized up almost 17%. but get this, this is the highest level since january of 2008, january of 2008. so it's going to be very fascinating to watch. hey, maybe they're all starting to listen to janet yellen and jump off the fence. i'm not sure, but i know one person who's got her shovel digging into the data right now. let's head west and see what diana olick has to say about today's strong new home sales. >> reporter: well, rick, you said weird. i'm going to say way weird. i mean, this is up nearly 17%, as you said, but i'm looking at prices too. you had a median home price of $321,100, that is substantially higher than we saw in april of 2015 where we were up around, you know, $280,000. no, we are seeing supply drop to a 4.7-month supply. we were at a 5.8-month supply just one month ago. so you're s

wrote much of my history of the fed, the reason there are three volumes, just to settle that minor problem, is because the second volume was so big the university of chicago press decided to publish it in two parts. [laughter] prof. metzler: another reason for being pleased to return to aei to discuss federal reserve policy is that i owe a remendous debt to chris, was the president for the 14 years i commuted here from pittsburgh. he supported -- i do not think there is another institution of its kind that would have supported me for 14 years and hired extraordinarily good research assistants to do the legwork of going through the enormous amount of material that there is in the fed records, so i owe a great debt to my friend chris and aei for aking the book possible. i'm very pleased to discuss peter's book on fed power and independence. let me start with some parts of the book that i like most. the fed's political as well as an economic institution. you cannot be in washington without being a political institution. the book, appropriately, is a work in political economy. it gives much attention, especially to the role of the president. the answer to the

fed minutes. the markets not so favorable reaction to them and our "closing bell" exchange right now. joining us an mohamed, dorothy, steven and rick santelli who with's in chicago. dorothy, clearly the market interpretation is that june is more on the table than we earlier thought. do you agree with that? is it? >> clearly we're being guided to be prepared for them. partly because they don't want to surprise the markets so we're beginning to see the fed spokespersons out there beginning to prepare the market for it. don't know that that necessarily means it is coming but it certainly means that if it comes, they don't want it to come unexpectedly. >> mohamed, is there a risk that we start to price it in now? in a way almost making the hike happen and then making it hard for the fed to actually move forward the markets don't do well here between now and the meeting. >> so the fed is torn. it is worried that we have been underestimating the probability of a rate hike and markets are starting to be more realistic in terms of what has happened to the two year treasury that has moved massively over what's happened to the probability. you know the fed is always torn.

chicago. are they fun? do you love being in security lines at the airport? it is awesome. sandra: airline passengers getting more and more fedong lines at those checkpoints and the port authority of new jersey threatening to hire its own security staff to replace tsa screeners. two senators proposing airlines don't charge for checked bags, in connecticut, richard blumenthal, baggage fees need to be 27%, two things going on, anger for the tsa and now washington. let's talk about this one. nasa is announcing an unprecedented number of planets. astronomers confirming the existence of 1284 new planets in our galaxy called xo planets, potentially some of them, tween 9 of them are habitable. the planets were discovered with the help of the kepler space telescope which was launched in 2009. this story for you. authorities in texas investigating a fire that might have been caused by payless shoes. a couple claimed their toddlers light up shoes ignited and burned out -- payless pulled the shoes. this happened when they pooled the shoes. interest in hyper loop technology is growing. you are probably thinking what is that? a company ca

let's bring in our panel of fed experts to see what this might mean, if anything, for you and your money. we'll get to rick santelli right now in the bond pits of chicago the ten year yield move up a little bit. >> and the dollar is screaming. >> oh, yeah. you call i had. the dollar, first chart we want to show, the dollar definitely moved from up about six to up about a third or more. so it ripped a bit. and two year note yields coming in were trading up 85, they're up three. the tens are at 1.83. they're up one basis point. now granted, all yields are moving up to areas we haven't seen, the short end much longer time frame. but my first comment is woo-hoo! finally. this is only my opinion. this is the first logical thing i've heard in so long! janet yellen and company, my hat's off you to. the second thing is now they almost have to go. because if they don't go after these comments without some real outliars on the bell curve with data, they'll never have credibility again. this is a wonderful thing. we need to get much more normalized. certainly after all these years, 25 to 50 isn't enough. a plus for the fed. and the markets movement, i think dig t

fed rate hikes. still trying to digest that in between periods. stuart: we'll take a 39 point loss. >>> more protests outside of mcdonald's in chicago. not much reaction to it. they're the protesters. what have we got there? liz: basically what is happening here is, this is the third year in a row that mcdonald's has shut down its headquarters in the face of these protests. so, is it going to be effective? will mcdonald's change? mcdonalds says they're paying workers more. backstory here, small mom-and-pop shops run the franchises. not the big guys. that is the question. stuart: the backstory, robots coming to mcdonald's near you because they don't want to pay 15 bucks an hour. got it. next one. may be biggest ipo of a company you never heard of. u.s. foods. it's a food distributor. it sells to restaurants and sells to institutions. it was one of the 10 largest private companies in america. today it went public. nice pop for the stock, up 8% last count with seventeen million shares traded. >>> higher profits at dollar stores plural. people are spending more money, not call them discounters but low-priced goods arenas. dollar tree is

scott is in chicago and anthony scare knew chew scaramucci is that a factor in the trading sector at all? >> i don't think so i think it is for a fedit is digesting the idea of a possible september rate hike had. >> september. that's what market is sensing. >> discounting june, july? >> board is saying it may happen in june but i don't think janet yellen will make it happen. >> before the election. >> i think -- >> that will be amazing. >> scott you make your point again please u how can federal reserve raise interest rates in june or july when you've got an economy growing at less than 1% annually? >> how are we talking about that? question to them would be what swrow done with my america? twice in a row u now we have had gop, and last time missed a .7 with a .5 and we're not growing. but approaching employment if they're not doing thinking. record number was people not in the job force. why are we con tell plaiting a rate hike? >> right before the presidential election, how could that be? >> how we be talking about it anyway? what happened to common sense. we're not growing we're selling. economy on recession. global risk and the

chicago this morning. the headlines today. the latest snapchat of the housing market is 90 minutes away. the government out with april new homes sales at 10:00 earn time. >>> philadelphia fedroach unless incoming data indicate a notable weakening of the u.s. economy. he is not a voting member for 2016 but the consensus around the table matters. >>> toyota recalls 1.6 million more vehicles due to air bag inflaters. not all vehicles built in the time frame are affected. >>> i love that, if someone is sick -- >> he gets to vote. >> someone calls in sick for raising rates that day, fed day, he is not here, this guy puts it over the top and causes a global financial crisis because a guy had a sore throat? >> i don't know if anybody has ever called in sick. >> janet yellen calls him in advance -- >> the whole idea that he comes in to vote if the other guy is sick. is that how we're making monetary policy? >>> coming soon, out of the london school of economics. >> lsc! >> they thought it was great when sorkin went there. >> part of my junior year. >> he didn't learn -- >> anyway. >> i was in the legal program, by the way. the law. >> maybe more appropriate now, brangelina. angeli