let's move on back ted christine lagarde at the imf.exclusive interview with the managing director, and we discuss everything from where the next cypress, the next crisis might be. the u.s. housing market. they just came out with a brand new report right here on the u.s., specifically focused on it. a setup by asking her out u.s. big financials, the 18 biggest names will all that was the fed starts tapering off its bond buying program in tears when she had to say. >> you're talking about the financial institutions, the big ones, as they're called. these financial institutions have been strengthened so much since the beginning of the financial crisis. they have been significantly recapitalized. they are under very serious, steady, regular control of the fed. there were supervised. and, you know, they are operators that will, you know, appreciate, understand the movements on the market depending on how the tapering takes place. liz: we start to see any talk from the fed about when it will taper. the markets take a hit. that's why we ask.

cheryl: you just heard from christine lagard. to the imf, warning fiscal and monetary policies saying there are modest dress for the economy in equities. our next guest says would mark discontinuing to operate, we're joined now the talk about it. i know you were listening to the interview. want to ask you about this. she said, this could be better. this economy should be better. she talked about pressures dimaggios and talk about the fact that unemployment is high and then brought up the issue of sequester. does any of her language today have an impact on how you view u.s. equities and how you view the u.s. economy? >> absolutely. i looked at the unemployment rate as one of the issues that is kind of holding back a better market that we could see. the sequesters, it did come fast. it was pretty intense. i'm not sure if i agree 100 percent, but i'm not the imf leader, don valley information . they're better days ahead. the debt issue, the debt ceiling is going to -- i believe that will be a non-event. we will raise the debt issue.

. >> i agree with christine lagarde. i things will improve in the back half of this year. david: well, when you say double-digit dip, are you talk about june, july, august, when? >> my timing model show that it should start sometime in july and into august and, we have had double-digit dips the past couple years starting usually in april, may, then if you put the money back to work in the summer you had a pretty good year. this time instead of happening in the april, may, june, july, time frame i think it happens in july, august, september time frame. david: so bottom line, and let's go back to joe now to see what he thinks of this strategy. jeff says hold the cash right now. wait for the dip he sees coming probably in the late summer. what do you think? >> hey, as long as one of the fed governors said they have the monetary cocaine out there i'm hard-pressed to say double-digit. from a theoretical perspective or from a probability perspective that seems pretty low the next couple months. with that being said i agree with fact with those names that have taken a nice run yo

do not go anywhere because liz claman is interview with christine lagarde.he automatic budget cuts. that is all next. it is a fox business exclusive. do not go anywhere. ♪ when visa signature asked everybody what upgraded experiences rely mattered... you suggested luxury car service instd of "strength training with patrick willis." come on todd! flap them chick wings. [ grunts ] well, i travel a lot and umm... [ mal announcer ] at va signature, every upgredxperience comes from listening to our cardholders. visa signatur your idea of what a card should be. visa signatur join us at projectluna.comm ♪ >> the head of the international monetary fund on the imf print your report on the u.s. economy, including the good, bad, and potentially ugly and how the imf blundered when it came to agree to bailout. a fox business exclusive. no longer, black rock stock funds are going to change is. we'll break down. and the man of steel opens nationwide today. some moviegoers will be watching it on imax 3d, just like superman the stock has been flying high. will the movie made

but christine lagarde is urging the bank to roll back its monetary easing in the future. the imf managing director spoke after releasing an annual report on the health of the u.s. economy. she said the feds quantitative easing helps the recover ne the u.s. and supports the global economy. >> there is no need to rush to exit from monetary accommodations given the still large output gap, gishton subdued growth that we have, and given the well-anchored inflation expectations. >> lagarde says the monetary easing should continue at least through the end of the year. the fed is buying $85 billion in bonds and other assets each month to lower borrowing costs and stimulate employment, but investors speculate it may start tapering off these stimulus measures. the imf report notes markets could overreact leading to a sharp increase in long-term interest rates and volatility of international markets. >>> united nations officials say they expect average life spe expectancy around the world to rise to almost 82 at the start of the next century and they expect the global population to

it ds not really -- a christine lagarde did not get paid when he was younger, it does not make sens togreator the plaintiffs' lawyers because the are a t of lawsuits. new york times this week, allows it was started. there is a huge -- melissa: what you think wl haen? i work during the year and save money. i could afford to work for free because i knew that's wt i need to do. i worked in theitchen, a job that slls, do whave else like it cannot and something for free. is that going away? de the internships gawayyor become paid? >> they become paid. melissa: that's not bad. >> but here's problem. if they become paid in the company, small or large, has put that in their budt. companies may very well want t get rid o it. white kidn internment you can geanmployee. melissa: why pay someone when they're will only be there for three months. >> exactly. lissa: maybe there is another paid person on the staff, but is not a college kid. >> and hopefully will work, but itould have a native effec on tse ks. melissa: thank you for comin on. great insight. coming upon "money," legal marijuana is spread

we'll talk to the managing director of the international fund, christine lagarde straight ahead.wired to be happy? are we. that's the cover of this week's summer issue of "time" magazine. we'll be right back. out there owning it. the ones getting involved and staying engaged. they're not afraid to question the path they're on. because the one question they never want to ask is "how did i end up here?" i started schwab for those people. people who want to take ownership of their investments, like they do in every other aspect of their lives. is as much about getting there... ♪ ...as it is being there. ♪ [ birds chirping ] away is where the days are packed with wonder... ♪ [ wind whistles ] ...and the evenings are filled with familiar comforts. find your away. for a dealer and the rv that's right for you, visit gorving.com. make a wish! i wish we could lie here forever. i wish this test drive was over, so we could head back to the dealership. [ male announcer ] it's practically yours. test drive! [ male announcer ] but we still need your signature. volkswagen sign then drive is bac

dagen: christine lagarde is speaking right now. the imf is reporting that the nature has

has pulled away from austerity, we've been criticized by christine lagarde for being too entrenched in that regard. we need to look at spending and business leaders say it's not just about cuts but how we're spending. get rid of these ring fences around health. instead look at defense procurement that's vital to tuck economy. look at infrastructure spending. those things are the way to bring the uk out of economic turmoil, especially in a world where we're going to be letting go of quantitative easing. back to you. >> we'll see you later on outside of westminster. for midday london time our uk audience can watch special conference of the spending review. be sure to stay tuned for that here in the uk. the chancellor tweeted a picture of himself last night putting the final touches on the speech and eating a burger as you do. nice nutritious dinner while you're putting final touches to the uk spending review. we figured it's only fair to show you how we get ready for a big day on set here in studio, and, yeah. this is kind of some of it. right? a little bit of makeup. a little bit of cur

he's being questioned not as the ceo of france telecom but as the former head of the cabinet of christine lagardeback in 2008, lagarde chose a prosecutor to settle a legal dispute between the controversial businessman bernard tapie. she decided to go ahead with the arbitration despite the objection from some government advisers. as a result, the french state paid more than 200 million euros to bernard tapie. prosecutors want to know if lagarde took the decision herself or if she was instructed to do so by the former president nicolas sarkozy who was supported by bernard tapie. three weeks ago lagarde was questioned in france by a special high court after two days of hearing. she was not placed under formal investigation but under the stages of assisted witness. we will know tonight or perhaps tomorrow if she'll be placed under formal investigation. but as the presumption of innocence revails in france, even if he's placed under formal investigation, richard will not have to step down from france telecom because of the presumption of innocence. france telecom, by the way, will change its name into

christine lagarde stated that the public trust has been lost, in the beginning of this meeting. you also stated to the chairman's question if somebody has done something wrong, would you terminate them? to thein accordance refundable tax credit. knowinglyf someone and and intentionally does that, yes, you would fire them. so we know that something has occurred and yet we hear there's this long review process fans and yet no one has been held accountable. for the committee, as anyone to date been held accountable? >> if you look at the irs -- >> that is a yes or no? >> i would say, yes. if you look at the irs organization today versus the day the ig report was issued, we have new leadership in the commissioner's office, deputy commissioner for services and enforcement, commissioner for tax-exempt and government entities, and in the exempt organizations. >> who has been held accountable? >> the leaders that were replaced, certainly the fact they are no longer holding positions of public trust is part of the accountability. portrayed terminated? -->> where they terminated? >> in mo