. >> chair powell, you employ more economists than anyone how is the fed looking at this >> the fed is an institution i very much want to follow in janet and ben's footsteps and say that diversity and inclusion is a top priority for us, the kind of behavior that we read about is totally unacceptable, will not be tolerated at the fed, and you know, we're committed to a diverse, inclusive environment. i really strongly believe diverse perspectives, not only do you get better results but the young people coming up are accustomed to diverse, inclusive environments and want to work at places like that part of our business model is to attract young talent i want the fed known within the economics profession as a great place for women and minorities and other diverse people to work, be happy, and be listened to >> so dr. bernanke and yellen, you both had excellent academic careers and both made decisions to move to public service at various stages i think in the standard, you get a ph.d., go to university, try to get tenure. that's not the usual stepping stone. can you reflect what role publi

fed, this is an i told you so.he labor market is in really good shape. >> there is no inflation. there is no inflation. more growth, more people working does not cause inflation. these old federal reserve models are outdated and have proven to be incorrect. >> wages doesn't mean higher inflation. the fed -- what robert kaplan said yesterday is right, be patient. >> too much gloom and doom. i prefer boom. jonathan: joining me around the table is bob miller, jim karen, and from boston, a senior portfolio manager at wells fargo. let's begin with the blowout payrolls report. where did that come from? >> i think it shows there is a lot of strength in the economy at the current time. labor indicators are a lagging indicator that doesn't necessarily predict the outlook for next year. i think that's what the market has been worried about. it's in good shape today but it will likely decelerate. jonathan: that is the problem. we've had one of the best payroll reports of the cycle, but everything else is pointing south. >> i

must've been some anxiety at the fed in the last few weeks given what's happening. >> for the fed, this was and i told you so. the labor market is in really good shape. >> there is no inflation. >> there is no inflation. more growth, more people working does not cause inflation. these old federal reserve models are outdated and have proven to be incorrect. >> wages doesn't mean higher inflation. robert kaplan said yesterday be patient. >> too much gloom and doom. i prefer boom. let's begin with the blowout payrolls report. where did that come from? >> i think it shows there is a lot of strength in the economy at the current time. labor indicators are come after all come a lagging indicator so it does not necessarily project the outlook for next year. i think that's what the market is worried about. it's in good shape today but it will likely decelerate. jonathan: we have had one of the best a role reports of this cycle but everything counts relative to expectations. every thing seems to be pointing south. >> i think this is probably the last great jobs report for a while. i would not be

goals of the fed. i think janet and i were very lucky presidents bush and obama were respectful. i had a good relationship with the treasury secretaries with the other administration officials and kept them well informed and had a friendly relationship. i thought that was an ideal relationship. during the financial crisis, the fed and treasury had to work closely on those issues. i would separate of those issues from monetary policy decisions always left to the discretion of the fed. >> do you see president trump's approach as problematic? dr. bernanke: i think everyone would be better off if it were clear the fed is making decisions based on its mandate and its assessment of the long-term needs of the economy, which i am confident it will do. >> do you believe the president weighing in the way he has poses dangers for the federal reserve and its independence and monetary -- monitoring policy? dr. yellen: only if it served to undermine public confidence in the fed and the basis for its actions and its

what we have is we have the new york fed every six weeks when the fed meets. >> so the new york fed is asking what they think. and the fed never says never endorse it so not only that, rick they may be driving a truck where the wind shield is painted black there are a couple of pedestrians on the street that don't see the truck coming my point is let's have a place we'll go to. let's stop and look around >> they stop and they look around they stop and look around. it is a static look. they need to be fluid. how will it look in a week at the same intersection? >> we were talking about this. and i agree. you can't put the cat back in the box. >> in the bag? >> here's the thing though >> the problem is their ability to predict or get the outcome isn't any better than when they weren't transparent. put everybody's name to a forecast they won't do it but they should >> why wouldn't they do it >> he just that, don't talk about the balance sheet. everybody would be happy >> they're not that unhappy. the markets are not in any way shape or mode in a panic mode just because jay powell says it s

nonetheless, it appears the markets have been well ahead of the fed and the fed is catching up. think an deceleration in growth is baked in the cake. we were already going to decelerate from passing the peak fiscal impulse from the first part of this year as well as monetary tightening over the last two years, and in december, the fed delivered a more hawkish expectation than the market was assuming and it reinforced the risk off, the elevated volatility for a while, and now it appears they are coming around. jonathan: some people are unimpressed with the communication of the chairman of the federal reserve. it has been flip-flopped after flip-flop. why haven't we heard more from this chairman? margaret: i think, frankly, he is not really sure how he should be communicating. in retrospect, even at the time, it looked as if raising rates in december was a mistake. i think now he is trying to talk his way around it. even though the talk has been gradual, the fact is, in the marketplace, liquidity has been drained to put too much strain on the system. it's not really an issue of ta

everybody thinking fed the fed didn't give them what they wanted and frequented out are the same people freaking out today. i think it's somewhere in the middle i do. >> to me, i think he gave a very different message today. >> i think so too. >> the fed, the balance sheet was off the table two weeks ago. i think he was pretty clear. the balance sheet is off the table. i don't think that's the case anymore. however, i wonder how bad does it need to get before any actually stop qt might be bad it's not' money put. we need downside before the put would kick in. i mean just the action today, you get a lot of things go right, maybe oversold conditions but then you had the data out this morning that was really good but to have the two-day action, have the market essentially be flat, i hate that kind of market i absolutely hate that kind of market it's a riskier market. and i'd rather that -- normally i love to buy when things are down a lot but in this market i wouldn't the want to buy on a day like today. that's scarey to me. to me, though, the number one issue is trade. >> yeah, so the pri

the fed can't ignore that data. although president trump would be happy if the fed decides to be less aggressive, take a pause on some rate hikes seems they may do. charles: danielle, do they work off the old models and assumptions? in other words, some people say the dynamics changed. inflation threats of the '70s are not there. they may not come around in a long time. we live in amazon world. in a world with deflationary pressures. how much oil has come down, deflationary sort of economy. maybe internet changed everything. is the fed changing modeling at all? >> it sounds as if they are based on what we've heard and seen since the fed met on december the 14th. it looks like they're sort of abandoning what you're referring to, which is the phillips curve which is that that tight relationship that used to prevail in the '70s, and'80s that. neil: charles: i here growth met automatic wage pressures and inflation? >> when we were young. >> charles, can i say one other thing about that? charles: please do. >> one of the

the fed blinks at 2.25 fed funds rate. go throughout history -- >> which don't live in a vacuum gary. interest rates around the world are zero. here in this country we're one of the highest in the world. >> the reason why they're near zero because central banks took out $20 trillion and printed and bought the hell out of the bonds to take them down there. and my just worry, when does, when do the bond market final say uh-oh. here is the good news, jeff saut, i read everything he says, i listen to everything he said. he is right. the economy is still in good shape especially here, much better than around the globe. earnings are not bad, even though they softened up. with easy money combined you get a market recovering pretty darn well off the lows. looks like continuing. >> we should admit there is some fragility in certain parts of the economy. particularly for instance, housing. you know that has been a real worrisome area. that is number one source of the so-called wealth effect, even more so than the stock market. so th

fed people around you?er] jay: what i'm trying to do is explain what we are doing and why we are doing it in a way that is comprehensible to the interested public. and that is what i tried to do. when people start using these technical words that don't mean anything to them, it is just irritating. so i try hard not to use it, or lapse into the latin, for that matter. david: speaking of latin, you have a skill you have perfected since college. you can take a word and pronounce it backwards. so, take rubenstein. you can say that backwards. is that right? jay: yes, it is something i was born with. i can see your name spelled forward and backward in my head. i have been a what to do that since i could read. david: is there any advantage in life from having this skill, or? [laughter] jay: it has been surprisingly lucrative at times. david: really? what did you think when you first on the fed? you are not an economist. jay: i spent a couple of years really getting the books. i sat next to janet yellen. she used t

janet yellen, served the fed governor, president of san francisco fed and is chair of the central bank from 2014-2018. jay powell, he has chaired the central bank for the last 11 months. chair powell is not in a khanna missed. he has a law degree. this sounds like a start of a joke. what happens when a lawyer walks into a conference with 13,000 economists? the punchline is, we are about to find out. [laughter] neil: let's dive in with you, chair powell. since the december fomc meeting, it was two weeks ago, markets have been volatile. we have seen pessimism. we also saw blockbuster jobs report this morning. is that changing, what is your outlook for 2019 and beyond? chair powell: thanks very much. it is great to be here. great to be here with janet and then, as always. as always. two dozen 18 by so many measures was a good year for the united states economy. most of the port of the horrid data we see coming in remain solid and suggests ongoing momentum heading into 2019. you mentioned this morning's jobs report. for those of you who have not seen it, we had 312,000 payroll jobs added.

that help shore up the independence of the fed and public confidence that the fed was acting in a nonpolitical way. it has been said, trying to make its best judgments to pursue its congressional mandate. that is the best kind of arrangement for a president, obviously the president has a right to comment on the fed that i would worry that if it continues or intensifies, it could undermine confidence in the fed and the market's confidence in the fed's judgment. >> i want to add something. people should know the fed has a strong culture around nonpolitical activity. we are committed to achieving the goals the law gives us and we are committed to doing so in a nonpolitical way based on the best thinking and we are always going to do that and it is very much in the dna who spent any time at the fed. i would want the public to be assured that we have a strong culture. it's not a fragile one, not subject to being disrupted. we will always do things that way. i want people to have confidence in that. >> let's talk about the mechanisms of monetary policy. you spent your academic career looking at ways

you had served as a member of the fed. that you have been a member and chair, is being chair all that it is cracked up to be? [laughter] jay: i was a governor for six years. i had every job there is to have. it is a great job and honored to work every day. david: you don't just wish you were a member? jay: i enjoyed the job. i really do. i'm grateful for the opportunity. i do. i enjoy it. david: do you find as a chairman that your jokes are laughed at more quickly? [laughter] jay: i guess we will find out about the jokes. i don't play much golf anymore. i think my jokes have always been well received, frankly. [laughter] david: you had an interesting interview at the american economics association with your two predecessors. at that interview, you seemed to say that the fed's position going forward is you are comfortable with the rate? jay: let me provide some context. 2018 was a good year for the u.s. economy, the strongest growth in more than a decade. the labor market is strong, historically low unemployment, wages goin

the fed no longer says the risks are balanced in that separate statement, the fed says it's going to operate policy with quote ample supply of reserves. that's code probably for a big balance sheet. the fed said the a adjusting rates is the primary tool but the committee is prepared to adjust the balance sheet in light of economic and financial developments the committee is prepared to change the balance sheet if economic developments warrant more combination that can be achieved by reducing the funds rate so there's a change, hey, it's on the table, but they want the funds rate to be the primary tool here. now on the economy, what's interesting here, all of these changes to the statement, not a lot of change to the assessment of the economy from when they raised rates last month. says household spending conti e continues to grow strongly job gains have been strong inflation remains near 2%. but they say that market based measures of inflation are lower. so ultimately, this federal reserve did monot change the outlook on the economy, but made important changes to its policy statement

how ready is the fed? . >> we use all of our tools to the extent appropriate and the balance sheet and i would agree that the tools that we use in a crisis generally worked. i raise concerns when we first got to the fed and i said those concerns that are raising are appropriate but we didn't see high inflation and other things. but again i echo what ben says but in fact, we are spending a whole year trying to engage with the public not just the profession but in general to explain ourselves a little bit if there are lower interest rates how will be conduct policy, or communicate and use our tools at that inflation target is credible and the goals that were assigned so for example, 20152016 to tie in monetary policy around the world slow growth in emerging markets that parallels to what we are seeing now but also when the signal is it would not go on forever. for those two episodes can you reflect on the lessons learned for current policy? that should be internalized? . >> i think looking at this feedback w

you had served as a member of the fed.ow that you have been a member and chair, is being chair all that it is cracked up to be? [laughter] jay: i was a governor for six years. i had every job there is to have. it is a great job and honored to work every day. david: you don't just wish you were a member? jay: i enjoyed the job. a i really do. i'm grateful for the opportunity. i do. i enjoy it. david: do you find as a chairman that your jokes are laughed at more quickly? [laughter] jay: i guess we will find out about the jokes. i don't play much golf anymore. i think my jokes have always been well received, frankly. [laughter] david: you had an interesting interview at the american economics association with your two predecessors. at that interview, you seemed to say that the fed's position going forward is you are comfortable with the rate? jay: let me provide some context. 2018 was a good year for the u.s. economy, the strongest growth in more than a decade. the labor market is strong, historically low unemployment, wages

fed people around you?hter] jay: what i'm trying to do is explain what we're doing and why we're doing it in a way that's comprehensible to the interested public. that's what i do. i try hard not to use that or lapse into the latin, for that matter. [laughter] david: speaking of latin, you have a skill you have perfected since college. you can take a word and pronounce it backwards. take rubenstein. you can say that backwards. jay: yes, it's something i was born with. i can spell -- i can see your name spelled forward and backward in my head. david: is there any advantage in life from having the skill? [laughter] jay: it's been surprisingly lucrative at times. david: really? you're not an economist. jay: i spent a couple of years hitting the books. i sat next to janet yellen. she used to come in my office and go, are you coming out today? i hit it really hard there. i felt like i had a a lot to learn, and i did. ♪ david: you grew up in the washington area and you went to undergraduate at princeton, and then

other fed officials as well. the bloomberg dollar index at the lowest level since september of this year. a little bit of pressure for s&p futures, which are at the moment unchanged, but this following a rather optimistic session from wall street on this wednesday. sophie: in asia, that global stock rally could be stalling. we see stocks in sydney little areged, but energy shares moving higher. beach energy, for example, opening 5% to the upside. bhp sliding over 4% as goldman warns the rally in iron or cannot last. the benchmark trading at a november high, but clouds may be gathering as investors are piling into bearish bets. anticipated for tokyo stocks this morning as the yen keeps steady after recovering from a three-day drop. as you can see from the chart, the yen did reach 108 overnight and some strategists do see a move toward mid-107 levels. japanese investors will also have some heavyweight earnings to consider. from india, tcs kicks off the tech earnings lineup. on the eco-agenda, trade figures due at 9

this means the fed still has room to run. what makes it so complicated as the fed has alluded to, there is a lack effect on the hikes they have made. do you expect to see in a knology did of the massive uncertainties and applications of trade tensions of the outcome of a no deal brexit? things that are a big wildcard care will not be acknowledged? carl: i think those wildcards will be acknowledged in the minutes of this meeting. but i do not think will be in the confines of the postmeeting statement. press conference minutes, absolutely will talk about these economic uncertainties. jay powell has a difficult task. he has to be the economic cheerleader and talk about the inilience and his confidence the u.s. economy. which is on firm ground. the unemployment rate is below 4%. wage pressures are picking up. consumer spending is strong. there is lots to be positive about in the economy. the risk is if the -- if he is too much of a cheerleader, the markets will wonder if he is really looking at potential signs of strain. that was

david: how do you get out of speaking in fed-speak when you have all those fed people around you?laughter] jay: when people start using those technical words that don't mean anything to them, it is irritating, so i try hard not to. or lapsed into the latin for that matter. [laughter] ♪ ♪ david: and so today, let's talk about the economy going forward. we are close to the longest period of expansion since world war ii. we could break that record. do you see anything that would make it likely we would go into a recession in 2019? jay: i don't see anything that suggests the possibility of a recession in the near term is elevated. recessions are caused by two things. one, inflation high enough that the fed has to hit the brakes. we don't see that. more common recently, in the last several cycles, it has been a matter of mounting financial balances, by which i mean the coming bubble, the dot bubble, or excessive leverage, as you saw in the subprime mortgage area. where those things happen. we don't see that either. we don't see the two most basic recent causes of recession, we don't se

, the fed changes. hike they said they were going to do four another year they said they were going to do three, they ended up doing four that's a result of the changes in the economic data it's the dots and i think the dots are confusing to people and by the way, i think powell has made a mistake here in that he's made a prerogative of working to regular people and the public and i think he's sort of left the idea of how to talk to markets on the other side. i don't really have a problem with how powell has handled policy my sprob it's a data dependent policy that's out there. >> we're kind of operating on that premise right now we'll see what it looks like steve, see you in a half hour. thanks a lot >>> sticking with jobs, the latest from linkedin on the workforce is out we're joined with those numbers. how does it look >> the boil we had seen under hiring is definitely gone. things are slowly cooking but very slowly. 4.1% hiring increase but 0.7% increase month over month. it's barely chugging long.

one quick question on the fed.e saw from powell the fed chairman on friday said he would not resign even if donald trump asked him to. is his position safe? can he be forced to resign? >> to the best of my understanding the president could move him as chairman but cannot remove him as federal reserve itself it will remain a federal board of governors. i would hope and that's not cross the present time. it would be a tremendously bad move and not in his interest. there appears to be a conscious effort to set him up to be the staple if things don't go well but if the fed better to set the fed up to go well. gerry: attentions between president, administration and federal reserve chairman are not been right. you see that happen in a few times in history. >> absolutely. what's unusual is the public and personal nature of it. that is this present. using his twitter account to publicly attack in a personal way but on policy differences many presidents have had differences with fed chairman. many fed chairman have visited

fed chairs do meet with presidents. of any fed chair who has not met with the president.tings tend to be rare. i think there has been only one or two in my time here. i am not aware of any fed chair turning down an invitation, nor do i think that is appropriate. invitation,u had an you would be happy to accept it? jay: i am not aware of anybody not accepting it. [laughter] david: ok, so let's talk about the economy. the fed in its fomc minutes pointed out a disparity. tend to beal markets uncertain from time to time, but the core economy seems to be doing nicely. had you explain why the financial markets are nervous and the core economy seems to be growing at a good rate? jay: the financial markets beginning in the fourth quarter got more volatile and seemed to be pricing in a pessimistic outlook, which seems to be rooted in concerns about slowing growth and a related concern of the ongoing trade negotiations. but if you look at the incoming data through the end of the year and the beginning of this year, you don't see any evidence of a , so we have factors pointing in di

think the fed is acting as a safety net clarity from the fed and we've got the none they'll be there as a safety net. >> what's the differences? >> there is a difference. >> if you have a put, what's the difference between that and and a safety net refilling is the punch bowl. >> rally is happiness and opportunity ahead. rebound is just reactive. >> semantics are one thing. >> she's making a good point. >> the reality is that investors certainly yesterday and maybe there's some follow through are taking the comments yesterday to be a green light to buy stocks >> they are. >> that's just a reaction. that's the collective market being, i don't know, like overly emotional maybe. when i look at it, i don't see anything they said yesterday that makes me want to buy stocks any any differently than five days before. >> come on. >> you got more clarity if not a -- outward and very public change on the balance sheet. >> in no way, shape, or form are the investment decisions i'm going to make in the next five weeks different than the past five weeks. >>ings in 2006, the fed stopped hiking afte

where you are with the fed funds rate.s that a proper interpretation? jay: let me provide some context. 2018 was a good year for the u.s. economy, the strongest growth in more than a decade. by so many measures, the labor market is strong, historically low unemployment, wages going up, workforce participation going up, which is great fries, and inflation near target. we saw continued momentum from the data this year. we also saw financial markets expressing concern about downside risks associated with global growth and trade this year. so how do we put those signals together? i think we are in a good place. i think where that leaves us, is a have the ability to be patient and watch patiently and carefully as we see the economy evolving, and figure out which of these two narratives will be the story for 2019. david: last year, people thought that perhaps two fed fund rate increases were part of your plan. is it fair to say that is not a part of your plan today? jay: there is no such plan. we don't actually vote on a path or

global growth and the fed.re in the u.s. bond markets, treasuries or corporate, is your sweet spot as we look at a flattening yield curve? iain: i would go with, i would go with a high-yield market. the spreads have come in a long way this year, but obviously they widen significantly at the back end of last year. when we look forward and we talked to our analysts, expectations for default, somewhere in the 2% region. if you have a 4.5% spread them of the fed not going anywhere, we think on a default adjusted basis, you are compensated to take that risk. maybe you are not going to get double-digit returns, but you could get single-digit returns in that environment this year. taylor: with a flattening yield curve, where is your sweet spot in terms of duration? noelle: mainly in the front end. we like u.s. ig, we like the asia ig, and that is largely on stable growth and stabilizing growth in china over the long-term. and that, i think there is room for high-yield loans in our portfolio but right now we like ig. t

of the hiking cycle for the fed. at least a very long pause. that gives the asian central banks quite a bit of maneuver. people will be starting to think some of them might be ready to start looking at lower interest rates in asia. once you get that into markets, it's good for the currencies, for the equity markets, for the bond markets. it is almost like a mini goldilocks scenario. maybe that would even feed into part of the european psyche, particularly eastern europe as well. this could spread across the world. the blip you are seeing in european business may continue for some time. anna: so this is not just buy the stock, sell the bond. it is good for assets broadly, as you describe. let me ask you about stocks. our markets like question of the day reflects on strong gains in stockmarkets. has the fed made stocks immune to disappointment on trade talks? what would it take to spoil this dovish fed party from trade talks tiago -- trade talks? complete had a breakdown of talks between the united states and china, th

the fed's timeline at least until march?n: january is a fed meeting, and we're going to have a press conference. i think that's going to make things a little bit more interesting. all eyes will be on that. if you think back to december and the uncertainty markets had, it was when jay powell came out and sort of stopped any thoughts of balance sheet reduction. and the market didn't particularly like that. they wanted more flexibility from the fed. since then, we've had docile change in tone. it looks like the fed are debating balance sheet reductions. any noise around that, any discussions around that can be positive for markets if it does come out. taylor: iain, we mentioned it's earnings season here, as well. i wanted your thoughts on corporate profits. are companies still healthy in terms of paying down debt, any commentary around earnings that has changed your view on the health of companies? iain: no, i don't think so. i think earnings are looking ok at the moment. the u.s. economy is going to slow, but it's not -- as we

that was a lot of work. >> in terms of communicating, with the fed's position is, in the old days, fed didn't communicate. the marker leave it out. now you're much more open i'm a is anything you can do to be even more open? >> the old theory was, we wer were -- 25 -- 30 years ago, a lot of work was done that actually if you're really transparent in the market understands your reaction, how you react to data and markets and people in business will do the work for you and away. is generally thought we should be as transparent as possible. i have a number of things i'm doing. i'm having press conferences after -- we published new reports laying out our framework for financial stability. we never put that on the record of the public to, on it. same thing in supervision. we are for the first time this year, doing something other banks have done. which is inviting public comment on the whole way we conduct the policy. our strategies, tools and communications. we are engaging the reserve banks engaging. all of us engaging with the public. we'll have a conference around this in june. the whol

fed from 2006-2013. janet yellen served as the fed governor and president of the san francisco fed and chairman from 2013-2018 and jay powell is a former treasury official and has chaired the central bank for the last 11 months. chair powell is not an economist. he has a law degree and this sounds like this the start of a joke. what happens when a lawyer walks into a room with 13,008 economists? the punchline is we are about to find out. let's dive in first with you chair powell. since the december fomc meeting two weeks ago, the market has been volatile and we have seen past -- pessimism and economic surveys and sub i blockbuster jobs report this morning. is your optimism about the economy changing? >> thank you very much it's great to be here as always and great to be with janet and ben. i will talk about 2018 and then turn to the outlook that was a good year for the united states and most of what we see coming in and is solid with ongoing momentum through 2019 you you mentioned the jobs report we have

so does the fed. that process may be the optimism underscoring some of the communications between markets and fed. tyler, back to you >> thank you very much let's bring in barry james and j joe. what did you see that stood out to you and do you read it any other way than steve put it, that this was the dovish part of the dovish hike. >> i'd agree entirely. the market is essentially getting what it was hoping to get out of the federal reserve which is hearing that this we're no longer on this predetermined path towards hiking rates. and it truly is data dependent i think so long as the u.s. economy continues to move a little bit higher, we can't ignore the possibility of another rate hike, but certainly markets ahave discounted that >> the words were this the extent and timing is less clear, barry james, so that would suggest there is wiggle room in the fed's future here let me ask you a direct question with the dow, the nasdaq up even more, s&p, russell, all up 10% or greater since december 24th, can

>> is the fed put back in place? the double whammy of bullishness with this fed dovishness and a china deal that you're still rallying on today. obviously those 24 great catalysts for the market going higher but speak and action are two entirely different things. melissa lee mentioned this the other day. jerome powell was speaking from a prepared sheet reading from a script as if he wanted the market to know a certain set of facts but i do believe if you go back and see what he said a month or so ago, he's going to do what he thinks is right. what he thinks is right is continuing to whittle down the balance sheet. >> you think it's hawkish? >> and to continue to move rates to reasonable levels that we should be, if, in fact, this is the greatest economy in the history of the public. not my words the president's over the last few months >> you think the volatility event is over. yesterday we spoke with maumd al arian. the fact the fed is coming out of the market ending quantitative easing means they're not assuming vo

and so the fed -- referees are the fed.y the story and i think that perhaps in a better tempered financial world, the fed would be rather more in the background >> how do you break that dependence >> we get rid of it. well, i think there are alternative monetary systems that we out oig ght to be thinkg when >> this requires a ever longer conversation >> well, judy shelton has written extensively on it. >> and we'll have you both back. but two minutes until the bell, so thank you both. jim grant and judy shelton >> and just under two minutes until the close. dow currently up 420 points. the low was 210. you can see the jump at 2:00 p.m. when we got the dovish tone from the fed that you guys have just been discussing and essentially we've held most of the gains since then. very quickly on to the dollar to see the dollar intra day move, but in the opposite direction of course, dovish tone leads to solve thor softer dollar down 0.4% having been up ten basis points before the fed decision.thor softer dollar. down 0.4% having bee

it's cheap the fed is on pause. and it is hated. everyone fights with me. >> thanks for being here as well that does it for us. thanks for watching. "the exchange" with kelly evans starts right now >> thank you, scott. hi, everybody. here's what's ahead this hour. countdown to the fed the street not expecting a rate hike today but investors will be grilled to jerome powell's every word especially on the balance sheet. what they want him to say to keep the rally going >>> boeing is flying high. the aerospace giant delivering blowout results and great guidance the ceo will join us in just a couple of minutes. >>> facebook set to report after the bell today now with yet another social blunder this time it's paying teens to spy on them. we'll explain. we begin with the rally. dom chu with the number. >> that rally in boeing accounting for a large chunk of the 300-plus points in the dow industrial average boeing shares right now account for 180 points of that rally another 60 coming from apple alone. those two stocks, the bulk of the gai