so esther george is correct.- david: this is interesting, wayne because the last time you were on you were heaping praises on ben bernanke saying he was doing a pretty good job. when it comes to this point of disagreement, when to begin tapering on that you are clearly in esther george's side and not on ben bernanke's? >> that's correct. >> all right. what happens now? do you think she's just a voice screaming in the wilderness because there are some other fed governors that are in favor of continuing to do business as usual for a while at the fed? >> well, what happens now is the fed continues to have a huge interest rate bet by owning long-term governments, and every bond fund owned long-term governments has taken a hit on its balance sheet. and the fed has taken a hit. and it must be 1 hundred-billion dollar loss. david: wow. >> that they have been accumulating but they do not mark it to the market. so they pretend like it doesn't exist. david: when they have to mark it to the market do you think they will end

kansas city fed president esther george talks exclusively with fox business. that's next.billion dollar fraud case against former goldman trader fabrice tourre. a live update from the courthouse is straight ahead. time to check oils and metals for you. also after the break, oil moving slightly lower, down still below $106 a barrel. we'll be right back. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. it's just common sense. she's always been able it's just her way.day. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to t

so far nothing yet from apple. >>> kansas city fed president esther george has been a vocal critic ofral reserve chairman ben bernanke policies voting against those policies every chance this year. when does she think the fed will begin tapering the bond buying program? liz: peter barnes knows because he got a chance to ask her in a fox business exclusive interview. this is her first interview since becoming president of the kansas city federal reserve. peter? >> david, liz, because of improvements in the jobs and other indicators she favors tapering of that quantitative easing, that $85 billion a month in bond interest purchases that added up to trillions on the fed's balance sheet. she wants to start doing that sooner and faster. she wants to ork with other members of the focm on dialing and pace of dialing down quantitative easing. for her she says the most important thing is to start the process, a systemically approach. >> i think it is time to begin to adjust those purchases much the labor market has shown now for the last six months a pretty steady gains of close to 200,000 per

in a fox business exclusive, kansas city fed president, esther george, telling our peter barnes lastal bank to wind down its stimulus program. >> i think it is time to begin to adjust those purchases. the labor market has shown now for the last six months a pretty steady gains, close to 200,000 per month, that is a good indicator that there have been sustained improvement here. dennis: for action, joining us now, we have the ceo of research firm hedge eye, and, keith, say ben bernanke is the greatest risk to the market right now and the fed should get out of the way. like what you hear today? >> getting him out of the way would be fantastic. we have to get the dollar up, and pro-growth signals like in 1983 and 1993 and hostage to the planner, and markets are not going to be any more confident as he speaks tomorrow. dennis: you're in favor of shorting gold and shorting treasuries, and yet gold is down from $1700 to the $1200 and treasuries up like a whole point. why short them? have they run already? >> no. back on ben bernanke's back. these are epic bubbles. ben bernanke created the

esther george said the fed should begin tapering immediately. me marks are adjusting to the idea that qe will not last forever. she said the fed should end it by the first half of next year. george, is by the way, a voting member. fomc in year and is known as one of the fed's more hawkish members. >> she's dissented every time. >> yeah. >> i think it's interesting she says immediately which means whenever the next meeting is at the end of the month, july 30th. >> she's waving her hands in a dark room then. she can say it but nothing is going to change. >> i don't see this driving policy or the deposition has a whole lot of support. she says end it by the end of next year so that's pretty much in line with the rest of the group and cape out of may 22nd fed meetings. >> the only difference here. >> immediately. >> but to think they will start tape sglerg sort tipped her hat in a way here. >> let's say ethier they will that what they want. by the first half of next yore she's tipping the bat has they would look at -- there's two suppositions in that

number one, esther george on the federal reserve saying she's in favor of tapering the bonds essentially immediately. that good for a few points on the downside, the big of the hawk on the fund and number two, comerica the first big regional bank to report, the first regional, and they had very weak loan growth and lowered their loan growth expectations. that's one of the reasons people have been buying the banks so all the regional bakes are weaker. i think it might be tougher for the banks to move forward after a few good earnings reports. >> mr. bernanke nervous ahead of the meeting tomorrow? >> i don't think he's nervous at all because he clarified what he's looking to do and farther reaching in september or at the end of the year with the tapering it's his legacy. tomorrow prepared remarks at 8:30 and we'll hear from him 10:00 live and unscripted what. he's looking to do here is all the hard work he's been put in getting us up to 1673 a day, he doesn't want tonight buyer. he wants to make sure that this market transitions over. >> has the market demonstrate that had it can handle it

well, esther george in the middle of the day moved the market down. like the banking sector. we saw coke. we saw schwab, mosaic, the fertilizer sector, all lower on specific commentary by leadership groups in those particular sectors. so i guess, mark, that's the question at this point. we're getting kind of cautious commentary. this is the first day we've actually had cautious commentary, leaders that are outside the financial area, how much of that is going to affect the market? >> i think -- >> go ahead, maria. >> no, please, you go ahead. >> i do think this is an earnings-driven market. i also think things are getting slightly better for the big companies. you made a good point about the banks. we haven't seen that sector get the kind of respect that we would expect for a sector that's getting more healthy, that's raised the equity capital that they needed to raise back four, five years ago. and what happens a year from now when they start returning to investors and buybacks and raise dividends, we really haven't talked about in a long time, if we

esther george, head of the kansas city fed, came out in the middle of the day talking about tapering sooner rather than later, but a well-known hawk on this issue. it didn't move markets that much. maybe 30 points on the dow jones industrials average. we ended just slightly to the downside. there's the dow. other things here. weakness on earnings. four sectors that mattered today. first, the fertilizers. mosaic came out. prices for fertilizer were down, specifically phosphate, their main product that's there. and that affected all of the fertilizer stocks as you can see. how about the brokered dealers? schwab came out with numbers. it was okay. they talked about trading volumes being on the muted side. as you can see, the broker/dealers were weak. i think the most important stock was comerica, which came out with good numbers. comerica was the first real regional bank to report. we were looking for loan growth, and they didn't report it. 2012 they had 8%, so far 3% in 2013. that's the key fact that affected all of the regional banks. comerica down about 2%. the beverage makers, coke

said ready said he means what he said the people are around the edges of the market including esther george. is crazy talk. >> be careful what you ask for. [laughter] he is a person who likes to have consensus. lou: but he lets them talk but communication is another thing. [laughter] >> there are huge legacy issues. there is several months before he steps down into period i don't think he will pull through. lou: you are right to. earnings season is upon us. we are watching disappointments today how we will this earnings season be? >> approximately 70 percent of the s&p 500 has speech expectations and at the margin it is better than expected for. i think those that disappointed recently. lou: what is your expectations i expect seven the year 75% i concede to a 3%. lou: we will take at. the president looks to change the subject again but the scandals, the white house scandals make that tough tactics. we take that up with the "a team" next. e extra mile. e extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron ca

esther george says that she favors tiberi and quantitative easing. she said that john fox business. starting in september she wants it done by the first half of 2014. what you say that? >> well, that is a big issue, but not a big deal in my mind. but if we face down quantitative easing, we are risking another sectton. to some extent the economy has become addicted to easy money policies. but we do need to get out of this. gerri: peter, thank you for coming on the show. we appreciate it. >> take your. re's your question tonight.what inflation a reality in your life? blog on gerriwillis.com and vote on the right-hand side of the screen i will share the results at the end of the show. we have more this hour, including tips on keeping your pet from being stolen. and fitness wristbands seem to be the rage. but when you put all of your medical data in your device, where does it go? we will tell you coming up next this mans about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy ousand dollars. congratulations you are our

of give in to the doves saying he would do what he can for as long as he can going against what esther georget starting tapering now. ben bernanke says, no we're going to wait and the markets were pleased. not overwhelming joy here but generally pleased by what they heard. liz: here is a look at the front page headlines. yes, ben bernanke, he did try to calm investors about the fed's plan to begin easing the bond-buying during congressional testimony today. the chairman said because the fed's purchases depend on economic and financial developmen

speaking of fed presidents, our own peter barnes has the first television interview with esther george, but more famous for being a dissenter as of late to mr. ben bernanke. don't miss that exclusive here on fox business. the s&p 500 headed forward 20th record close this year, but the next guest is raising cash, he says, for the first time this year, and says you should, too, ahead of what could be a 12% pullback coming soon. jeff, chief investment strategist joins us now, and, jeff, great to have you on the program. you're pin pointing this, why is that? >> i'm talked about target dates, deriving quantitatively and timing models for the last month. i targeted a timing point for july 19th, sticking with that. there's a lot of things coming to the from a backdrop that could be the trigger event, the fed speak on the 17th and 18th, and you got, what i think, will be a disappointing revenue season with second quarter revenues and earnings coming out and you'll hear before the congress adjourns, some talk out of the hill that sequestering is taking a bite. lori: staiding the case well, but

esther george is a hawk. worries that all of this easy money, quantitative easing could cause asset bubbles, could lay the groundwork for inflation she -- said today she said an hour interview that she once said start to taper quantitative easing faster and sooner. those were her words. but the surprise was that she says, listen, i am not giving a firm date or a firm time for tapering or ending quantitative easing. i just want to get a process started. at issue was to do it at the committee level. she also talked about the challenges of all of the communications and all this in acknowledging that there have been challenges, seeing interest rates,. but she didn't call that an overreaction. take a listen. >> i think it is to be expected that when the town of policies change there is an adjustment process. and the market's reaction, the rates settle down a little bit. and so, again, i think that was unnecessary communication. i think as we go for the markets now will have differing expectations. >> she also came

an exclusive interview next tuesday with the head of the federal reserve bank of kansas city, esther georgemember of the fomc this year. she totally opposes all this quantity quantity. she has been a dissenter in all the votes this year. we'll talk to her. the first television interview with us next tuesday. liz: fascinating. great get there. thank you so much, peter barnes. adam: we've got some astonishing video of a human owed robot being -- humanoid robot being developed by the department of defense. it is no terminator but can do remarkable things. we'll tell you about it when we go "off the desk." ♪ >> data from the hubble telescope shows that this planet is just like earth but that really think they have been common. the color comes from the atmosphere not water it but it rains malting glass. >> one alice could help rescue victims forever a national disaster they're challenging them to develop software to let them complete task in a disaster zone in the king go around any obstacles in its path. >> 24 hours from now i am sure our hearts will feel great also our legs will hurt us. we're

the loan to center, esther george, who was concerned of the high level of monetary accommodation, increases the risk of likelihood of future imbalances and over time could cause an increase in inflation. >> the line we said right before the fed we said came down remained exactly the same. perhaps the key line, i'll repeat t.highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program, better known as qe ends and the economic recovery strengthens. steve liesman, your reaction, what's in here that you take away? >> let me tell you what's not in here, the guidance provided by the fed chairman after the meeting is not in the statement. that's the thing that will be most glaring to oh, and the question is what do you do with that? ? and i think the best thing to do with that is to say policy as dictated by the fed chairman after the press conference, the outlook from the committee remains in place. three new elements of this statement of what's in here. the economy was characterized as modest as opposed to a mod latt pace so it's

charles ploser, richard fisher, esther george and jeffrey locker, george dissending on every fed statement that's come out, and these guys generally way more hawkish, but i want to show you a place where it looks like the market may be ignoring the views of the hawks and that's on their interest rate forecast. take a look at the average of the 51 respondents when we ask where will the fed funds rate be december ber, june, june and december 15, not much gain until next year, and then maybe you get a hike by the end of next year, but more importantly the hikes come december 2015. now, i put this up against the fed's forecast. remember, the fed will give us in its statement of economic projections their own forecasts so there really should be no difference here except there is a big difference. look at december 14, 0.43 for the fed, but 0.28. why is the market more dovish? it actually increases 1.34 for 15 and 0.97, under 1% for the market. why would there be this difference? and now i want to show you the fed statements of where the funds rate should be. take a look at this -- at this foreca

we heard from kansas city president esther george. and, of course, speaking of central bankers, tomorrow all eyes on dr. ben bernanke, his semiannual testimony to congress, perhaps more insight into the direction of monetary policy, michelle. >> even more. >> even more. >> you've been talking since may, josh, don't move. we're going to keep going on this discussion. joining us onset are andy busch, author and publisher of the busch update. is there anything left to say, i wonder? because he's talked in may, he talked in june, talked in -- it's been on and on. and yet, the markets move dramatically every time he opens his mouth. don, what are you expecting in the next two days? >> i'm an advocate of a whole new economic philosophy. it's called fih, the fed irrelevancy hypothesis. i challenge anybody out there, do what i've done, look at the numbers. we've been doing large scale asset purchases, qe now for 4 1/2 years. it began in january 2009, we can look at the size of the fed balance sheet, we can look at when these programs began, w

we will interview next week, next tuesday, esther george about all of the fed policies.tative easing. she has been at the center of all of the meetings. stay tuned for that next tuesday. tracy: peter barnes, that is good stuff. thank you. have a great weekend. ashley: bringing back glass-steagall could lead to serious problems. joining us now is former sec chairman harvey pitt. harvey, thank you so much for being with us. look, we have heard the arguments for and against glass-steagall. what is your main contention with this? what is wrong with spitting out the banks? go ahead and gamble, just do not do it with fdic money. >> they can gamble with fdic insured money. the cost to consumers will be extraordinary. banks are ruled by safety and soundness standards. tracy: did the exercise sound taking practices? >> they did not exercise unsound practices in connection with security finances. this bill would not change any of that. ashley: that is interesting. you are saying that it has absolutely no relevance. banks have gotten so much larger. you could argue that by repealin

voting for the policy action today, 11-1 was the vote. 11-1 with esther george of the kansas city federal dissenting once again. the statement says she was concerned that the continued high level of monetary accommodation increased risks of future economic and financial imbalance and over time could cause an increase in longer term inflation expectations. tracy and ashley, back to you. tracy: peter barnes, thank you very much. so a lot of the same, a lot of what we were expecting, continuing 85 billion-dollar monthly purchases. let's get a check on how stocks, oil, gold are all reacting to this fed news. we've got team coverage. nicole petallides on floor of the new york stock exchange. phil flynn in pits of the cme. phil, let's start with you. i know it takes market to react to this kind of stuff. >> i hang on every word as the peter barnes is delivering all findings on economic committee. the market was sitting and trending a little higher. it was up maybe 12 points it. was sentence when he said, really they're not going to do anything, they're not going to taper back that bond-buying u

also want to mention before i let you go there will be continuing to speak, speaking to esther georgee has been a dissenter at the fomc. since bad policy. we have the first television interview exclusive with there. cheryl: that is wonderful. we're looking forward to the interview. cheryl: and the market today, big announcement from ups. the global delivery company warning. you looked at the stock and the sector coming up next. blaming rising gas prices. coming up, the economic fallout. the making a big jump this week. as we go to break, take a look at the metals. gold, silver, copper, all of it down. we will be right back. ♪ cheryl: we are getting breaking news. there are several reports right now that a train has derailed and a suburb of paris. officials are saying there are many casualties. getting reports from the associated press, even sky news. they're working on getting more informational and now. again, this train has derailed. all the authorities are saying that there are many casualties. our regular plan has been activated. that is a worst-case scenario. the interior ministr

also kansas city fed president esther george speaks about agriculture and the economy at 2:15.son and johnson report earnings before the opening bell. after the close, we expect yahoo! we'll hear from them and csx. back to goldman. it reports second quarter figures at 7:30. the company should be earning around $2.86 a share. revenue just under $8 billion. martin morrissey joins us now. dan greenhouse with us as well. good to see you. what do you think about goldman's trading performance? >> what we have seen so far when you look at jpmorgan and citigroup is that with the volcker rule kind of looming out there for these broker dealers within these big money center banks, they have avoided taking positions. so-so far what we have seen say better than expected performance, especially when the significant spike in interest rates could create some losses and fixed income. if goldman can avoid that, we think they can earn more than $3 today, significantly beating what you just said in the 288, 290 range that the street expects. >> so you're looking for something to beat. if they do t

we are keeping in mind the op-ed that you wrote to for the journal, and seems like you and esther georgef some sort, and do you believe that the article will carry the day? >> well, in the article, i said that tapering should not be made to depend upon the state of the economy. the bernanke position that it is data dependent is in a tough spot. because you can look at the data and say it is getting better, but not better fast enough. the real point is that the large volume of quantitative easing has created very low long-term interest rates which create real risks for the financial system, and that is why it is important for tapering to begin. >> do you believe that september is what the market is baking in, marty, and do you believe that the chairman will do anything to change that? >> well, i believe he will put a large margin of error around september especially after the housing numbers that came out today. you know, in the prepared testimony he begins by saying that housing has been doing very well. well, that was true until the june numbers came out this morning showing that housin