president eric rosengren thinks the u.s.my is doing fine but he is concerned that the central bank has been unnecessarily accommodating with the rate cuts. >> target, core pce is just a little bit off from where we want it to be. the unemployment rate is still quite low by historical standards. gdp is growing roughly at what we would expect, around potential. in terms of economic data, the outlook has been good. >> saying it is in a good place, would you agree? >> i would. we are in a good place. the composition has been a little bit different than we expected. a expected exports to be little stronger, we didn't expect consumption to be quite so strong. global slowdown resulted in both exports and business fixed investment being weaker. >> would you think it might have been that way without the fed's rate cuts? >> we would have been a little softer in some areas. residential investment looks like it is picking up. one of the challenges, what the side effects are of low interest rates. one is how much room we have if we actua

still to come, are exclusive conversation with eric rosengren. he warrants the increase of 2% inflation could put financial stability at risk. display a on china number of macro headwinds. we will get the top trades next. this is bloomberg. ♪ >> we are coming down to asia's first major market opening. can see the nikkei futures in chicago are pointing to a small decline for the nikkei. sx 100 in australia is a little higher. the u.s. each doubt minor gains. this is a little bit. we will see when the market gets trading on the cloudy tokyo day. this is daybreak: asia. paul: let's get an investors approach to asian markets as u.s. stocks hit records. evans investor partner joins us here in sydney. i wonder if i can't start a little closer to home in australia. we have the asx near records. do you think it is time to take profits? are you expecting a pullback? >> that is right. the asx is at record highs. last week, we had a large number of those blue-chip stocks that we hold in a number of our portfolios. all actually hit record highs. we have had

his view is not shared by boston's fed president eric rosengren, who dissented against this year's cut. in an exclusive interview, he told bloomberg he's concerned about a negative shock in the current environment. >> i am a little worried we have less room than we would, if we were to have a big negative shock. and not just the short end of the markets are the long end of the market has been fluctuating between 1.5% and 2%, a lot lower than prior to the last recession, meaning even quantitative easing will have limited effect, given that it could easily get down to more quickly than expected. matt: joining us now is melanie baker, senior economist at royal london asset management. it is not so important what you think the fed should do next, but what the fed is going to do next. do you think they are holding pat7 every -- holding pat? have we passed peak dovishness for the fed in the u.s.? melanie: i think the fed are on hold. a strong message from powell, and we will see if that's in the minutes this week area generally speaking, the u.s. economy is in a better place than it was. we

nejra: that was eric rosengren speaking with mike mckee. we will get back to that conversation in a moment. breaking news crossing the bloomberg. it is launching a share buyback program of up to 400 million swiss francs. that is the redhead mind to draw your attention to. coming in at 422 billion swiss francs for julius baer. let's get to our guest who joins us for the hour. stephen, great to see you. let's start the conversation with a meeting between president trump and jay powell. the dollar weekend when investors talked about negative interest rates and dollar policy. how vulnerable is the dollar to more potential pressure from the president on jay powell in an election year? >> that will be an inhibiting factor for dollar strength. for this weird environment with the u.s. dollar right now, global fundamentals are not great, and i get that it is now becoming the consensus that things should bottom out in the first half of 2020 and gradually recover, but what we have seen over the last few weeks is that the dollar can perform well as a s

and boston fed president eric rosengren sits down with michael mckee from the boston fed.lance of power" on bloomberg television and radio. ♪ mark: i'm mark crumpton with bloomberg first word news. the house impeachment committee plans to hear from eight witnesses in open hearings this week. the first one is tomorrow. a new poll says 70% of americans think president trump was wrong ukraine to investigate joe biden, but according to the post, only a little more than half say the president should be impeached and removed from office. supreme court justice ruth bader ginsburg is back on the bench. she took her seat for a brief session after being out last week with a stomach bug. the absences marker first from court arguments in a quarter-century as a justice. to white house is pushing get a bill through congress that kurds the high price of prescription drugs. the move comes after the white house and nancy pelosi parted ways on medicare price negotiations, an idea the president once supported in principle. instead, the president is now backing a compromise bill that would fo

eric rosengren on the path of the fed.g and old, need to have access -- access to education and skills training. nationalreate a education service, providing free education and the right to all throughout their lives. focus passionately on technical education and on academic education. snobberyve behind the that has made further educational and technical colleges easy targets for cuts. new greenk in these jobs, we need to expand upon this ships. so today we are announcing a new program,pprenticeship delivering 320,000 apprenticeships in england alone during the first year of the new government. these a position of will offer training to school leaders and workers looking to change jobs midcareer, creating the engineers, technicians, and construction workers we need to transition to a green economy. businesses worry they will not be able to fill skilled posts in the future. climate apprenticeships will help to address that funding as employers set aside -- as well as access dividends in our plan. it needswith you that refor

boston fedthe u.s., president eric rosengren says he doesn't believe in using negative interest ratesa recession and would not choose to use them in another recession. we will be watching out for other fed speakers later this week including jerome powell. janet is still with us. is the fed on pause? the effect ofght three rate cuts look like? janet: ultimately, they have already delivered three rate cuts this year. the impact, for low interest rates, it should stimulate investment being held back by china trade tensions. removed to a certain extent, course households as well. what we observe in the data is recovery in the housing data generally, and of course housing in the u.s., some of the more positive data coming out in the region. we do think it would be quite positive, but we have the fiscal stimulus from the u.s., now fading. overall, we still believe that growth in the u.s. is going to flow despite the rate cuts by the fed. -- is going to slow despite the rate cuts by the fed. manus: can we talk about inflation? this is a global disinflation story. i am looking at the breakeve

one central banker who is not a fan of negative rates is boston fed president eric rosengren.. >> i do not like them in general, and particular for the united states. i do not think it has had the desired stimulus to get the long-term deal so negative and parts of the world and it starts to get distorted behavior i do not think is helpful. in the united states we have vibrant short-term money market and i think it would be disruptive if we went to negative rates. he has dissented against all three of the fed rate cuts this year. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am viviana hurtado. this is bloomberg. say -- just heard you you agree? mark: it almost seems like he is the sage in the room. easier for lower rates to get people to refinance to get the velocity of money going. the moral hazard. if you're not having people be able to save, they will make non-economic decisions and go out with the risk curve of maybe a new product and find out three years later it was a bad decisi

eric rosengren expressed concerns about the recent cuts. >> i'm not so sure we needed quite so much accommodationso i'm a little bit worried that we have less room than we otherwise would have were we to have a big negative shock. i would say it is probably not just the short end of the markets. even quantitative easing will have some limited effect given that that could get quite down to zero more quickly than we were expecting. rishaad: let's get it back to john woods. --a frosty meeting, one would imagine. john: we have long felt that this last cut was the last in the current cycle. we don't think there will be anymore. the typhoon in japan, the vat hike, the gm strike, these are now easing. we anticipate the global industrial production will trump this court are picking up next quarter. signalnds a positive about the global economy and the u.s. economy with the trade talks also approaching some sort of resolution, i think the markets now once again focusing on the reduced, substantially reduced wrist of succession. need't think there is any now for interest cuts in the u.s. economy. yvonne: d

eric rosengren speaking today in oslo, and federal reserve chair jay powell testifying on capitol hill for the breakdown, michael mckee, bloomberg international economics and policy correspondent. -- saira malik of nuveen still with brooke and i as well. what was your long-term take away from that conversation? michael: the fed is on hold into 2020, and that is going to be enough to keep the economy growing at about where it is. everything else depends on donald trump and whether he continues the trade war. if that continues or escalates, things could deteriorate in the fed would have to rethink. aced on what they know now, they don't need to do anything else. they think they stimulated the economy. if the consumer keeps spending, we will stay where we are. brooke: i know the china ppi numbers today were pretty weak. there's concern about whether that filters into the u.s. and europe and depresses inflation here. is that something we should watch for the fed? michael: it's not just inflation. it's also a sign that the economy there is weak, which then brings back that whole global rece