we did get to talk to eric rosengren about rates earlier.et is going to be thinking about. here's one thing he said about hikes. >> my hope is that we do it slowly and gradually. the longer we wait, the more likely it is that we're going to have to do it more quickly. obviously you don't set one monetary policy to asset class. but it's symptomatic. whether it shows up in inflation or asset prices, it's a little bit hard to determine. that's why i'd like to have an economy that is at a sustainable unemployment rate over a long period of time. so. >> just a quick word, guys. rick is right that the producer prices were a touch hotter than expected. when you look at a year over year rate of 0.7%. it's hard to get excited about inflation coming from the wholesale level. price gains have been very muted. and it's hard to think that there's a whole lot of push coming from the wholesale level. maybe a touch of pressure on earnings and mortgages right there. >> you know, steve, one question about the producer price index. is that really just goods? o

we'll hear from multiple federal reserve officials two key ones, eric rosengren and janet yellen. th speaking at the 60th annual economic conference. rosengren will speak first, before that speech, to our own steve liesman. he interviews him at 7:30 a.m. eastern on "squawk box." rosengren dissented in favor of a hike last time. janet yellen speaking at 1:30 eastern. her comments will be live on cnbc. >>> on the corporate front, citigroup, jpmorgan, wells fargo and pnc all reporting results before the bell today. >>> investors pulling cash from u.s.-based stock funds for the second straight week. lippor reports outflows of $3.7 billion ending wednesday. u.s. based taxable funds saw 2 billion in withdraws during the same period. >>> the u.s. treasury department issuing final rules to crack down on tax inversions, that's when a company is acquired by a smaller business to avoid paying a higher tax rate. this rule will cut down on earnings tripping. complicated, but the person that can explain it to you all is the treasury secretary, jack law. sara eisen spoke to him about the regulati

eric rosengren favored raising rates at the central bank's last policy meeting and in an interview todaysaid his views have not cha >> my hope is that we do it slowly and gradually. but that the longer we wait, the more likely it is that we're going to have to do it more quickly. obviousl you don't set monetary policy to one asset class. but i thk it's symptomatic of what happens when things become less sustainable. whether it shows up in inflation or asset prices, it's a little bit hard to determine. but that's why i would like to have an economy that is at a sustaie unemployme rate over a long period of time. so we can make sure we have as long a recovery as possible. >> in a separate speech, the head of the new york fed, bill dudley, said he would expect a rate h occur this year. >> in washington, senator elizabet warren is calling on presid to replace the chair of the securities and exchange in a letter, senator warren writes that mary jo white has corporations to new rules disclose det of their politi spending. eamon javer is in washington fo the story for us. good to see you, eamon

regional bank president esther george of kansas city and eric rosengren fro boston wanted the fed to raise rates at that meeting. the central bank will wait until its last meeting of the year in december before raising rates, the next meeting in early november comes just one week tifore the presidential for "nightly busine" i'm hampton pearson in >>> the president of the new york fed says the american economy is on track to expand at a moderate pace for at least five years. speaking at the business council of new york state, dudley said the best way to do this is to -- use general it will interest rate hikes >> i think we're at a point where the economic expansion has plenty of room to run. inflation is a little bit lower target rather th above our i t we can be quite gentle as we go, in terms of gradually removing monetary i think this economic expansion can last a good while longer. >> mr. dudley also said there is still slack in the labor market, and that is one of the reasons why the central bank has been patient, some would say too patient, in raising interes >>> the number of j

eric rosengren, boston fed president. used to be one of the doves.the other side. >> stick around, steve. let's bring in mike ryan chief investment strategist wealth management on the americas for ubs. good to have you both on board. all this back and forth about the fed and yet it is still probably the central question for investors, right? >> it's certainly one of the three. i think what you've seen is these kind of series of setting the markets up for rate hikes only to kind of basically step back at the last moment. what i think the fed is doing now, i think bill dudley categorized it appropriately. what they're doing is going to take a prudent approach to raises rates. i think what they want to do is also send signals around the ability to communicate better with press conferences. that's why i think the probability of november is so low and why december is so much higher. not only do you have the ability to communicate better in december, let's also not forget -- not that this matters at all. we have an election right after the november meeting

want them to be moving sooner rather than later, and what is very interesting is someone like eric rosengrenas been very disposed to keeping rates low for such a long time is now dissenting and saying that we need to move. are some of the labor market issues you discussed are the pressure points, but there are other points eric has raised that i have concerns about. >> we don't see a lot of inflation, and we have not seen inflation rear its ugly head in so long that i think a lot of people, not necessarily as sophisticated as federal reserve economists, but a lot of market participants find it hard to believe that we could see the economy over huge, even if rates were kept lower for longer. >> for sure. right now, we are seeing inflation below the fed's 2% target. it has been there for a while. expectations have come down. the best type of central-bank policy is one that is looking through the front window of the car rather than looking to the rearview window of what has happened in e past. they want to be ready, but i some of is not only these inflation pressures, but also some of the finan

. >> the boston fed president, eric rosengren will speak to cnbc later. tune in for that. that's at 1:30 p.m. cet. u.s. futures, we're indicating higher on the open. the implied open on the right-hand side of the screen. >> that's it for today's show. i'm nancy hungerford. >> i'm louisa bojesen. "worldwide exchange" is up next. have a fantastic weekend. guess what guys, i switched to rint. spri? i'm hearing good things about the network. all the networks are great now. we'rtaing within a 1% difference in reliality of each oth. and, sprint saves you 50% on most current national carrier rates. save meyn your phone bill, invest it in your all busiss. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verin, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit sprintrelay.com. >>> good morning. jpmorgan, wells fargo and citigroup ready to roll out quarterly results. >>> an

plus don't miss an exclusive interview with boston fed president eric rosengren tomorrow on squawk ata.m. with damic perfoance, to help you hold the curve... and bold styling to stay ahead of the curve. the lexus rx, rx hybrid anrx f sport. this is the rx, elevated. this is the pursuit of perfection. i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the mputer traitor! i won't. (cannon sound) >>> we're back on the halftime report. copper's fall tog a one-month low hey, jackie. >> good afternoon. that's right. a 2.5% drop down in copper prices today. that's on the weak export data, not the mention the fact golden sax is out with a note that says it excepects accelerating oversupply. what do you make? >> it's about demand in china. they imported less copper for the six b months in a roechlt their imports are as low as they've been since february 2015, so, until he get economic growth in china and europe, copper's going to continue to have a rea

david: talk about eric rosengren's speech this morning, the fed may consider repositioning the composition rosengren is one of three members pushing for them to raise rates sooner rather than later. it is almost two separate things. the reason he said he would like to see rates rise is because he is worried about distortions in the financial markets, particularly commercial real estate. in terms of steepening the yield curve, that gets back to the growth weston and the topic of this conference at the boston fed. yieldsuggesting a steeper curve has traditionally shown the economy is getting stronger and possibly generating more inflation because you want to have that inflation compensation the farther you go out on the yield curve. it is similar to what the bank of japan is talking about doing now. they are pinning their ten-year note yield at 0% because they want a long-term expectations for inflation higher. rosengren did not suggest pinning the number or picking a target for the 10-year but did suggest maybe the fed would do the reserve -- reverse operations, go out longer on the curve,

janet yellen will travel to the land of the dissenter, eric rosengren, in boston, the 1:00 hour.omberg. ♪ francine: this is "bloomberg surveillance," live from paris and new york. we are in paris because we are at a conference. we caught up exclusively with the former french finance minister who quit in april because he wanted to start a political movement, called "on the move." he has not said whether he will run for president when elections come up in may of next year. i wanted to drill down his view on europe and whether brexit could also mean further or more european integration. an approachwant where the brits will have the better of two worlds. it will be a big incentive for all members of the club to leave or to kill the european ideas, because the european ideas rest on responsibility and solidarity. that is a critical point, especially when you speak about immigration. it is impossible to leave the burden to some members. francine: you can hear that emmanuel macron wants to take a hard line. to do something and then forcing other countries to do the same. so he is saying

and i think that that kind of speaks to eric rosengren and his stance that the cost of waiting too long is going to be another burst of financial instability and that is where he had his focus. >> flip side, we're getting split messages from the bond and stock markets. it looked like the stock market would worry about a democratic sweep and what it means in washington is potentially higher taxes and even stiffer regulations, that would slow the economy. >> yesterday's sell-off because of politics? >> i think part of it, yeah. and -- >> the rising dollar, or rising rates, wasn't -- >> no, no, i think that is the part is the fact that rates were going up. for no apparent reason. >> let's say the data keep doing what the data have been doing, slow growth, moderate job growth, and so on and so forth. but the stock and bond markets react violently to whatever the election result is. does the fed do anything in december? >> i would say no. >> they won't move a hair in december if there is disruption. it is not the -- >> why are we discounting november? >> a lame duck meeting. >> why? >> if th

chair janet yellen is under eric rosengren who has supported ultralow rates.ill the minutes provide the clues? the likelihood of a 2016 hike. --'s welcome gilles moes moec. to what extent is the dissent in the fed? gilles: the minutes are likely to reveal a hike in december is on a natural slope. that is a change in what we had at the beginning of the year. things are much more hawkish. your craft here, -- your graph here, getting closer and closer to their definition of stability. if you look at the labor markets, it makes not a lot of sense to continue to do that. this is the message we will get. there are indications the need between. sales later this week. it is the natural slope. mark: there seems to be a view that some in the fed will want to see the eyes of inflation. is that the eyes of inflation? 1.7%? preferred measure or does it have to be 2%? gilles: there would be a case for excepting inflation overshooting in the u.s. physically the view would not just be we need to be closer to the old -- we would like to see inflation overshooting the target fo

what is very interesting that someone like eric rosengren who was favorably disposed that keeping ratesw one of the p dissenting and saying we really do need to move. not only the labor market issues you were discussing, but broader issues on financial stability that eric has raised and i also have concerns about. matt: we don't see a lot of inflation. we have not seen inflation rare its ugly head in so long, that a lot of people, not necessarily federal economist, but market participants find it hard to believe we can see the economy overheat if rates were kept lower for longer. >> we see the inflation below the 2% target. expectations have come down. one that is looking through the front window of the car rather than the rearview window of the past. they want to be ready, but it is not only the inflation pressures, but financial stability considerations. thinking about the consequences of having interest rates low for so long. when i was there we brought rates to zero. including the phrase for some time. nobody thought that would mean3 2016 and 2017. >> when we talk about that, there

rosengren is on exclusively today, and here's what he told our steve liesman. this is the boston fed president, eric rosengrin. "there is a higher probability in december that seems appropriate. the market seems to think there's a high probability. we'll see how the economic data actually comes in, but i think it is priced appropriately." so the market is okay. >> you would have thought after the economic data came out that the banks would have taken another leg up. they actually didn't. they came down somewhat. the high of the day for the banks was after jp morgan reported and then after -- after the economic news came out and rosengren -- >> maybe it's the word cross-selling that comes up again. these words cross-selling, and it scares people a little bit. the regulatory environment over the banks is fairly prohibitive, people would say. it's more of a variable than where interest rates go. rates have backed up. banks have not performed. >> nobody believes the fed is going to go through with it until they do it now. they've got so many of these fake moves. oh, we're going to -- something happens i