now, fed board members have hinted that a strong recovery in the job market could lead them to end the zero interest rate policy earlier than expected. the fed has made public in late july. the minutes show that many of the policy committee members support a view that the labor market is improving faster than they had expected. so it may be sooner than they currently anticipated. they identify pointed out that the labor force is not being sufficiently utilized. most agree that the decision to raise interest rates should come after making sure that the economy and the labor market are improving. the central bank has stuck to a zero interest rate policy since the lehmaf brothers collapsed in 20089. many market obama receiverers have been expecting a rise in interest rates in the first half of last year. >> volume was a little bit light on wall street. a lot of investors waiting to see what comes out of the economic symposium this weekend. the nikkei actually closed in positive on wednesday for the eighth day in a row. and that's the best run since december. analysts say the wraekenning y

stephen oliner, former fed board member says yellen has it right. of course we have larry shover, who bright and early way before janet yellen got up, sending us his notes what is happening. what did happen, larry? we were expecting a lot more from janet. weren't you? >> you know, actually, ended up being anticlimactic. i was expecting a little bit more. hard to accuse her of anything. given recent data points, especially wage growth, lack thereof and cpi coming in a lot colder than expected, she is able to lay in the woods right now and talk about being very data dependent. talk about wage growth not being there and environment changed since that great recession. that said, very anticlimactic. i was caught a little bit surprised. liz: steven, former fed board member, so let's get right to your opinion on this. tell us, give us some direction. i love how larry cac gorized it and hard for him to be mad at her because this was sort after squishy speech in a way. >> she didn't break any ground. that was right. repeated what was said to the statement at

talked to jeremy stein at harvard, left the fed board, fascinates me because tes a democrat, but hawkishe worries about access, and his voice now is taken up by a lot of commentators, but raising questions about the fact that we have really not had any significant pull back now for over five years, and while far be it for me to see markets go down, it's a back and forth that's healthy, and i think the bond market is especially worrisome to economists now. >> carl posted on tumblr, and shares a view many people hold, question whether prices in the asset markets are over heated, and you talked to people on the topic. what do they say? >> i don't want to use the word bobble, because that's too far, but the question is the decline in long term interest rates as the fed said over and over again, we're tapering, we know they are doing, and we'll raise interest rates next year. figure that out. i talked to another economist at princeton, really interesting theory nobodimeny menimeny meni the first out of the room, and watch closely, the minute they see someone else go, we'll get out then. the i

but tonight, christin ayers shows us why the feds want their money back. >> reporter: boarded up windowsles of garbage outside this abandoned home in richmond. it is so trashed that the city has deemed it unsafe to live. >> i think it looks bad. >> it does bring down the feeling of the community. >> reporter: neighbors would like to see it cleaned up and so would the federal government. an audit released today shows in 2009, the feds gave richmond $3 million to fix up foreclosed homes like this one and sell them. the city fixed a dozen of them, but left others rotting. the audit says the city should have cleaned up properties like this a long time ago, but three years later, this property and two others like it are still dumps. >> i think that the city could have done a much better job overseeing the project. >> reporter: city manager bill lindsay says the contractor the city hired wasn't vetted properly. the result, shoddy work, emmer properly installed dish water here, a bad fence there. the city blames richmond. lindsay says since 2009, all that has changed. >> i would say that our ov

yelen this morning is not giving investors a clear idea when the feds will begin to increase rates. taking a live look at the big board dow is down 15 the nasdaq is up 12, sm & p down one. >>> fit bit says it has never sold users private information to advertisers. the move comes after concerns were raised about consumer privacy. fit bit makes wearable devices that track and monitor fitness activity. fit bit says it has clarified it's privacy policymaking it clear the company does not share any personal data. >>> career website glass door.com released a report of the top 25 companies for culture and value and san francisco based twitter is number one. the report is based on feed back from american employees. glass door says the report gives insight into how workers view themselves via culture and values in the workplace. >> if you look at the twitter platform what twitter is all about which is communication and being open and transparent, these values inside of the company actually reflect the twitter platform. >> here's a look at the top five, twitter is followed by pr company edelman, google and facebook. >>> today

they're fed up, they're angry with everybody across the board, republicans and democrats. upset with the president both on the economy and his numbers on foreign policy are even lower than that 40% approval rating, so a lot of dissatisfaction with washington all around. >> we know that a lot of that anger is coming from the fact that americans are still trying to dig out from the great depression, but do they see any improvement in the economy? did you ask that question? >> those are an interesting observation pollsters made. 50% of the americans said yes, the economy is objectively getting better. things seem to be getting better a little bit. but this is a stunning number. 64% of those we asked said that they believed that the recession is still affecting them personally today. that includes 40% of people who say in the last five years they have had a member of their household who's lost the job. these are big numbers and people are still feeling the effects of that recession, even though it seems to be getting better. >> who do they blame for the recession? this adminis

today the board of supervisors will consider a resolution to declare a state of emergency there to allow the feds and state government to reimburse the county for the repair work. >>> tens of thousands of students in the quake-affected area have another day off. inspectors are still checking for damage in the napa valley unified school district. schools closed are in napa, yountville and american canyon. still some cleaning up to do at nap napa high school. the textbook room is a mess. buckled shelves and books tossed across the floor, just about every room has some damage, although most of it is minor. most schools in the district now have water, electricity and internet service. >> there is no structural damage for two-thirds of the school. however, one-third has yet to be reviewed. >> school officials will let us know by 1:00 this afternoon whether they will open tomorrow. the boys & girls club and parks and recreation center are open to help parents with child care while schools are closed. >>> and as we have been reporting all morning long, aftershocks continue to rock napa county. last hour

tomorrow the board of supervisors will consider a resolution to declare a state of emergency. that would allow the feds and state to reimburse the county for repair work. >>> now to napa joe vazquez met people who lost nearly everything. joe until t bradley adler / >> reporter: city officials say they now have a clearer view of the damage of the area and a lot of it is downtown here. you've got a lot of brick and unreenforced masonry like this piece right here and also the surrounding neighborhoods where we have found some people who are now homeless. y other house is off its foundation every other street er going down it. >> i'm devastated. i can't believe that this happened. >> reporter: bradley adler lived on fourth street six years, but he's now getting evicted by the earthquake. he was in texas yesterday but raced back. >> from what i understand from the neighbor, some of the neighbors that were home, the house shook violently back and forth and then rested and then almost sank like into a sunk hole. >> reporter: the damage is remarkable, even bizarre. the earthquake didn't just knock the house of

. >>> feds are also looking into whether or not wall street businesses were targeted by those hackers. taking a live look at the big board on wall street now, it is down by 40 points. >>> the identity of the woman who died at burning man is still unknown. festival organizers say she was run over by a bus at midnight. the bus had passengers. burning man is through labor day weekend. 60,000 people are expected to attend. >>> a close call in sacramento county. a u-haul truck plowed into a home just barely missing a baby sleeping in its crib. the baby was unhurt but a wall and window were smashed. police are looking for the driver who fled the scene possibly on a bike. >>> still ahead at noon, the most sophisticated traffic camera network in the bay area and it's right around levi's stadium. we'll take a closer look at the system and how drivers use it to their advantage. >> reporter: hi, i'm meteorologist lawrence karnow in the kpix 5 weather center. well, skies are starting to clear out now but a former hurricane going to send a few clouds our way. we'll tell you what that means coming up. ,, ,,,,,,,,,,,,,, been flocking t

. >> woodruff: federal reserve board chair janet yellen gave little indication today of when the fedht raise interest rates. but, in a major speech, she suggested again it won't be any time soon. wall street's reaction was muted, the dow jones industrial average lost 38 points to close at 17,001. the nasdaq rose six points to close at 4,538. and the s-and-p 500 was down nearly four points, at 1,988. for the week, the dow gained 2%. the nasdaq and the s-and-p were up more than 1.5%. >> woodruff: also ahead on the newshour. why kurdish fighters lack the military might to thwart islamic state militants in iraq. "orange is the new black" author piper kerman on the emmy nominated netflix series. how parents and family can be the key to making sure kids keep learning during the summer break. ruth marcus and michael gerson on the week's news. and, how the a.l.s. ice bucket challenge went viral. >> woodruff: now, to the frontline of the fight to save iraq. one element of the u.s. effort to turn the situation around relies on arming kurdish security forces in their fight with militants from t

>> they will put out plus size board, that's why girls like this feel the need. these are images we've been fedur whole lives. this girl is meeting the needs and slammed for it. i feel bad for the girl, i feel like a lot of the comments were really harsh. i think the anger is true, it's there, but it's misplaced. it should be towards the client rather than the girl herself. neil: what do women tell you, prior campaigns, have you quite the following here. do they tell you my god, someone normal. >> the outpour of support i received was inspiring to me because honestly, my stomach was a part of my body they was self-conscious about too. neil: my stomach has a different sense. >> i remember my dad telling me, i did that toochl it's normal, it's a normal thing, and i think that -- neil: what do we do to young women and teenage girls that this is the model that we hold up? it's weird. >> it's unrealistic, not fair for us to only be fed -- naturally only 5% of women fall into the category which is naturally thin, my roommate is one of them. i hate her for, it she can eat whatever she wants. when peop

fed rate hikes in the future. european markets this morning, gaining across the board. the ftse 100 higher by 0.4%.ve got the german markets higher by 0.5%. we've seen a stronger services pmi number out of germany today, weaker in terms of italy and inline in the french markets higher by 0.4%. one of our top stories in europe today, telecom italian shares are halted after falling. its comes after telefonica, the largest shareholder in the group offers va inventory da to buy vgt. vivendi shares are higher by 3.4%. >>> now, the world's bank has pledged up to $200 million to stem the spread of ebola. mean while, it has isolated a patient with ebola like symptoms returned from africa. nbc's kate snow has this report. >> after dr. brantley walked out of that ambulance, his family rejoiced, just two days before choppers followed him through the streets, his wife, amber, expected the worse. his wife asked friends to drop everything and pray. but by the time he landed saturday, he had mistake a remarkable improvement after one day of a rare experimental drug never before used on humans. >> it really is a c

fed will keep an eye on the unemployment rate before changing policy. investors this morning are looking for a repeat performance on wall street. there were gains across the boardek. the dow added 109 points. the nasdaq gained 93, and the s&p finished up 23 points. >>> wireless company sprint is looking to attract more customers with lower prices. the nation's third largest wireless carrier is expected to announce new pricing plans this week. those could include cheaper prices and more data. it is an initiative from sprint's new ceo, marcello clare. >>> and turtle power reigned supreme at the box office again this week. "teenage mutant ninja turtles" topped the box office in its second week on the screen, bringing in more than $28 million. marvel's "guardians of the galaxy" had a successful second week with nearly $25 million. rounding out the top three is the new comedy "let's be cops" with nearly $18 million. lauren? >> jill wagner at the new york stock exchange, jill, thank you. >>> straight ahead, your monday morning weather. and the ice bucket challenge keeps rolling along as a charity sees the money rolling in. but is it too much of a good thing? shoes sh

board. and some of that has to do with data but has to do with the fact the fed is not making noises about doing along those lines. and lastly, this market is rallying, never broken the intermediate or trend lines, this is against the backdrop of a very, very good second-quarter earnings season with profits. this market is going to head higher, it will get back up to the all-time highs around 1991. liz: the fed might not be making noise now, jackson hole is in just a few weeks, the fed gets together and telegraphs policy changes. we'll be there. appreciate it. closing bell, we're about 39 minutes away from hearing the bell ring. amazon ceo jeff bezos joining mobile payments war, taking direct aim i guess at everybody, square, paypal, levelup, dwolla. ever heard of them? will amazon crush the rivals. not so says one of the real pioneers in the business. whether he's afraid of the 800-pound gorilla in the room? found out next. >>> a money spinning success story, flywheel putting team fox business through paces. look at producers and production assistants, we went into the high-energy room. >> to t

fed for at least some time. highest rates in the western u.s. >>> a power outage for passengers on board a roller coaster at a newey amusement park. customers had to literally walk down the ride after their ride got stuck yesterday. no one was hurt. and those are your fast five headlines. >>> today in gaza, a grim milestone. 1650 palestinians have now been killed in the three and a half week long conflict with israel. 9,000 wounded. israelis, three civilians have been killed and 63 soldiers have died in combat. that number may be growing. hamas says if golden was captured, he was likely killed in an israeli air strike. troops have to send in a search for the officer while an area bottom boardment pounds the town. ambassador, nice to see you as always. these are proven to be fragile at the very least. does either side want to deal at this hour? >> well, it's hard to say, alex. after the capture of the soldier, the israelis are in no mood to believe that hamas or anyone in gaza that speaks for hamas hosni credibility. the egyptians condemned hamas. look, you're going to need credibility in order to maintain a cease

>> the fed of the sec has ordered the best to go back to the drawing board and come back to regulators with a revised proposal by july 1, 2015. the big question is, how do they do that? the only conclusion you might be able to draw from this is that the fed is trying in it back your fashion to force these banks to break up or at least sell businesses. was put in pretty simple terms. they made up their minds. big institutions are a major risk and need to be split up. some are pursuing explicit legislation. others want to burn the big institutions so much that they simply cannot operate effectively. that is the subtext here. >> thank you so much. moving and shaking this hour, the aol ceo, tim armstrong armstrong. figures easily beat estimates to a one percent drop in profit. he says he is open to partnerships and deals but one thing he's not interested in is acquiring a company to save money on taxes. >> it is not something i spend any time thinking about. is, once you start talking about taxes, for a company like ours focused on a marketplace, our job has to be to focus on consumers and

board. i was just mad, so i just -- the officers here. the officers, they be getting on my nerves. i guess i got fed up. i don't listen to them no more. >> did you have anger before you came here and got locked up? >> yes. family problems and all. there's anger right there. so -- i ain't going nowhere. >> yesterday, we had about eight slots that weren't full. since last night, about 9:30 when we brought another young offender in here, it went full tilt. we went from 17 to 24. we are now full. it's just one of those days, when it rains, we don't have enough buckets. >> just two cell doors down from this teenage flight risk is 18-year-old kenneth howell. >> trying to find some way of getting out. >> howell made his first move to scale the pendleton fences at the crack of dawn. >> almost made it over that time. it wouldn't have been my first time. i cut myself before. i'm used to so much pain from early on in my childhood, it's just a small scratch compared. i can have a gouge from here down to here. i'll just look at it like wow. >> as one of the largest maximum security juvenile prisons in the country, p

fed could lead to hikes sooner than expected. today earnings from viacom and aol. the dow dropping 139 points. the nasdaq losing 31 to 4352. rupert murdoch pulls his bid to buy time warn. the board refused to discuss a deal though the offer was compelling and fox's approach was frepiendly. >>> check the forecast now with meteorologist rob mayeda. how are we looking today? >> interesting out there. we have light rain falling in parts of the central bay from the peninsula towards the east bay, too. you can see, some of the wet roadways around san francisco, last band of showers through the bay area now, down into palo alto and sunnyvale. and heading towards castro valley, pleasanton, dublin, san ramon, light rain from north to south. that will be the trend today. enough to wet the ground in a few spots by hayward. down the sunol grade, you may have wet roads. anytime you get to light rain around the driest time of year, that could make roadways slick with the oil on the top of those freeways. we will see clearing skies from north to south, heading into the afternoon. past lunchtime, clearing. temperatures climbing warmer than when we saw yesterday. we should see low 80s around san

board. >> well, this is the start of the vics over the last year. this recent one, moves of 50% of greater off 52-week lows. the fedn buying a lot of bonds. but they're going to be done soon. so, the traders thinking about more volatility. now, 70%. closed at 17, well below the long term average. and you can see the inverse reaction here. look at what's going on. a few months later, up about 10%. and the s&p was about 30% last year. you're seeing this convergence, we're seeing a spike, the s&p come in a little bit. and this, over the last six years, including the financial crisis. we haven't seen levels like that. every level, trailing the fed buying bonds. what does this tell you about what to do with the s&p? this is the trend line, a series of higher highs and lower lows. grinding higher. this line, if you're asking me, what does this 70% spike mean? if you're looking -- if you think, take it to the bank when it spikes like this, wait until the trend line, about 1,860 on the s&p 500. >> do you agree? would you wait, mike? >> yes. and when it spikes, there's a lot of uncertainty. and we get a little bit of a paus

well are absolutely fed up with the money that is being spent on this summit when they're faced with austerity we think nato is not a full peace with a forceful military action on board says a great deal about the unpopularity of course that they feel they have to meet behind still paris is highly fortified. places after one of the places they fenced off is called it also well if a call so listen secure for for the heads of state it's nowhere. thanks for joining us today almost five months now government forces have been operating in eastern ukraine and the pummeling of cities with heavy artillery goes on the latest attack on friday hit a square near a railway station in the city of donetsk a stronghold of anti-government fighters a bus and a car were completely burned luckily nobody was killed meantime elsewhere soldiers have been in so cold for a week near the city of there they will now be able to escape through a humanitarian corridor or they've been given until ten am local time to make their way out that means they've got a roughly an hour left although the information comes from one of the army's commanders and it is this point has not been confirmed by militi

well absolutely fed up with the money that is being spent on this summit when they're faced with austerity we think nato is not a force for peace but a forceful military action on board has a great deal about the unpopularity of their cause that they feel they have to meet behind still barriers and highly fortified. places after one of the places they fenced off is called of course a world if a costless and secure for for the heads of state there are lots nowhere. ukrainian soldiers who have been encircled by anti government militias in eastern ukraine for week have been allowed to leave through a humanitarian corridor let's go live now to our correspondents in the region paula see as she joins us now point out there was word that they didn't want to take the humanitarian corridor that was offered by president putin now they seem to have what's the latest that you have for us. well according to ukraine's interior minister the first group of trapped ukrainian soldiers has made their way out of the encirclement and joined other units earlier the russian president vladimir putin urged the antigovernment fight has to allow the soldiers who are trapped in the battleground

board. he is an adviser there. >> host: from your book "end the fed" you write the supreme court has never been a friend of sound money and has really been a protector of the constitution. the only unique power the fed possesses is the power to inspire support the creation of new money out of nothing. his knees that? >> guest: banks like it, governments like it, i find a means years like it but the people do not benefit. just the reverse. >> host: that is the conclusion of it. >> guest: some people believe they will benefit by it. we talked a little bit about the housing bubble when low interest rates were if there and it looked like it would last forever. the people endorsed that but it backfired. it only benefit special-interest and they should not have this power and it when it goes to the courts as far back as throughout history say never ruled in favor of some money especially during the civil war period when they cried about the greenback's and things like this and they are not likely to come around to supporting that position today so there has to be a new group of supreme court justices

fed chair janet yellen will be addressing other central bankers in jackson hole, wyoming, so we are seeing typical caution ahead of an event like that. on the big boardow down 23, nasdaq down 7, s&p off 4 after a record close of 1992 yesterday. shares of ross up 6%. gap moving higher by 4.5%. frank and michelle, back to you. >> thank you, jason brooks from kcbs news. >>> a video has surfaced showing sheriff's deputies punching a man they were arresting. the sheriff's department calls the punches, quote, jabs of distraction. kpix 5's joe vazquez shows us what that means and when it's allowed. >> reporter: the video shows two sonoma county sheriff's deputies wrestling on the ground with a man named jonathan can rose so. just as they get a hand behind the back one of the deputies starts to punch him. watch in slow motion. the deputy punches him in the thigh and then the chest. another deputy appears to be shoving coroso's face into the ground. >> anytime an officer uses force it looks bad. >> reporter: he says it's's justifiable use of force. >> you have to remember when a police officer is in a confrontation there's at least one gun involved the one th

fed. >> right. and it seems that is hurting everyone almost across the board. and you are seeing -- i guess you're seeing a bump in things like housing and autos, but for a long time you weren't. finally, it becomes a replacement cycle where you're going to have to buy a new vehicle. but i still think the average age of a car on the road is -- it may be hard for us as consumers to capture why we do what we do, but as it's discovering, it's good advice. >> janice wall and patrick kiefer. you are a rock star at mkm, right? >> yeah. a shooting star of immense proportions. i thought about that. anyway, what's wrong? five years later, the average guy on the street still doesn't feel confident enough in his house or confident enough in his -- if he owns a house and confident enough in keeping his job that he's actually a very lackluster consumer still? >> i mean, all of those things, i think, that you just talked about are key. you know, another thing that i would add 209 mix would be spending on things like smartphones, which has migrated down into walmart's custome

board. i want to comment on the state of the economy, this jobs report and there i say the fed?> the market is confused and i disagree a little bit. six months of 200,000 plus job growth is okay. is not where we want to be but not disappointing. stuart: it is down 90,000 from the month before. >> the market has conflicting signals. you are worried about the fed, how long they will keep this monetary policy, what distortions' does that create, looking at gdp, where inflation is, wages are flat so you will see volatility increase in this market. stuart: in the stock market. >> volatility everywhere. as the market sorts out the signals. stuart: good to have you back with us this friday morning. let's get to the other big stories of the day which would be the crises overseas. fox news analyst ralph peters joins us. to russia first. there is a lot of talk we have had on this program that vladimir putin will start pressuring the baltic republics. would he do that? >> prius, invade no. vladimir putin is a long-term strategic thinker, far from perfect but he has clear goals and is ruthl

fed and it raised a lot of conversations. and how -- "whether much markets are mispriced relative to fundamentals is always uncertain, but when markets have moved across the board have, that should be a warning of accesses in the market." i would like to welcome another economist who read the piece as well, the director and cofounder of economic and policy research, dean baker. i read through some of the notes you had on martin feldstein's piece, and one of them you said basically it was painful to read this piece. why? think back to 2014, and professor feldstein and secretary rubin are issuing this warning, and if they issued a comparable warning about the housing bubble in 2004, given their stature they might have saved the country and the world an enormous amount of pain. >> martin feldstein, do you want to respond? is arst, let me say it good thing dean baker pointed out that i had a co-author on this "wall street journal" these, bob rubin, who had been president clinton's treasury secretary. it is important that bob and i did this. bob, a markets guy with government experience, and myself. there is no question that the housing problem was a serious one. i

fed report to shareholders. one of the more remarkable developments of the last 1,000 s&p points that i am indeed celebrating is that some shareholders have become very noisy and in a shocking development -- boards are listening. burger king, for example, is basically run of, by and for some hedge fund managers that demand regular performance. it can't stand still because its directors won't let it stand still. doesn't matter how big or insulated you think you are from these activist shareholders, almost no one is immune as we know from the positive responses to both microsoft and apple to the products of value act and carl icahn respectively. as i pored through the cops that have been most aggressive in self-help or disappeared entirely to takeovers driving the s&p higher with their terminal takeout promises, i am astonished how often the whole process starts. it all starts with a couple of quarters of underperformance. or the need to feed the growth beast before the activists swoop in and create huge havoc. that does ultimately get the stock higher. i don't mean to cite the gang of companies that have shed the visions. it certainly is true that low rates have kept lots of stocks with big divid

coming up, the fed tells the nation's biggest banks that they are not persuaded they are ready for the next financial crisis and to go back to the drawing boardbout goes upscale. i'm not lying to you. goes upscale. i'm not lying to you. as is "market makers." on bloomberg television. -- this is "market makers." on bloomberg television. streaming on your apple tv and amazon fire. ♪ >> it is back to the drawing board for the big banks. the federal reserve reserve and the fdic toll a lot of the your living willsnks are not credible. in theory, a failure could trigger another financial crisis. the agencies order these banks to simplify. how on earth are they going to do that? let's talk. david, what do you make of this? >> well, you know, the living wills are one of the biggest oddities of dodd-frank. trying to, and a very clean way, low-impact way, dissolve the large financial institutions in the middle of a panic and chaos is questionable. second of all, the plan to create to do this are going to be based on the particulars of the last crisis. but the next crisis will not be the same as the next one. it will have its own anomalies and peculiari

appointments to commissions, committees, boards, conferences, or interparliamentary conferences authorized by law by concurrent action of the two houses or by order fedhe presiding officer: without objection. mr. coons: mr. president, i ask unanimous consent that notwithstanding the senate's rather, committees be authorized to report matters on tuesday, august 26 from 10:00 a.m. to 12:00 noofnlt. the presiding officer: without objection. quoons quoons before i conclude, simply wanted to thank the staff of the senate foreign relations committee and our chair, senator bob menendez for host hosting a very successful reception in the senate ruvment ssell office building for nearly 50 african heads of state were received. it was an important kickoff to a successful u.s.-african summit currently being held. i ask unanimous consent that when the senate completes its business today, it adjourn and convene for a pro forma session only with no business conducted on friday, august 8, at 9:15 amendment of that when it adjourns on friday it adjourn until monday, september 8, 2014 at 2:00 p.m. that. on monday, september 8, following the prayer and pledge, the morn

fed move more quickly. i don't think yellen's decided that, but i think there's been important movement in the views on the issue. >> steve, you can't see the market boardsre looking at the intraday movementings here, and it's little trying to decide what to make of this. yields rose slightly at the short end of the curve especially, but now have come back down to earth. to me, it signals she could have been more dovish and laid out more explanation as we saw in the last fed statement for the slack, a defense of the easy, zero interest rate policy, but the fact that she's thoughtfully looking ahead to the progress would seem to be a hawkish sign. i don't want to say "hawkish" because it's not definitive would be way or another. >> not surprisingly, you got that exactly right. i think that the idea that she's more in the middle suggests a movement on her part. she could have done the full-throated defense of the labor slack and easing monetary policy. this not that speech. in fact, i expected more of that speech than i got here. look at the progression of things. there was a comment in the minutes that was more hawkish suggesting, you know what? things ar

fed melting up. breaking news to bring you right now, though. just crossing the wires literally moments ago, family dollar's board announcing that its board of directorow officially rejected the proposed offer from dollar general. they say that they're doing that based on antitrust issues. you might remember we broke the story earlier this week, dollar general had offered $78.50 a share. that compared to the $74.50 that had been agreed to earlier with dollar tree. the board of family dollar saying that they are against the deal worried about the antitrust issues. they actually then come out swinging, the ceo of the company, saying i would also like to note that dollar general's letter sent late last night contained blatant mischaracterizations and did nothing to address the antitrust issues in dollar general's proposal. we should also note, we talked about this before, nelson peltz has a huge stake in family dollar. has a board seat through ed garden, co-founder and part of trian, and they say that they are on board with this particular transaction, the lower -- the deal at a lower price, dollar tree, and so, here we are, it's sort of, you know, just

fed. >> you don't think they've done that? >> not at all. >> hmm. we're looking at some of the sectors today. looks like, if we could put the sector boardone second again. bob, where do you see the most opportunity in this space, then? >> again, a lot of it's going to depend on the signals coming from the federal reserve. what i meant was a few weeks ago, the yellen fed started to indicate they were sending symmetrical signals and then they back-pedaled on that and said we intend to keep monetary policy very easy for a considerable period, and they neutralized the idea of letting the bond market, for instance, take over the view for interest rates. so, i think if the fed plays it smart here and they signal what their intentions will be for 2015, they can manage the bond market vigilantes and keep volatility relatively suppressed compared to what otherwise might be the case. >> isn't really the only question here -- i mean, i don't mean to quarrel with you, but i feel fairly comfortable in saying that the fed has signaled reasonably articulately, for policymakers, that is, because i remember greenspan, and he was anything but articulate

fed. the bond market, however, does not recognize the better growthing and there's upside risk to bond yields. >> thank you, both, for your time. >>> up next, steve ballmer leaves the microsoft boardthe noted and long time microsoft analyst tells us why he thinks the move means for cash for shareholders. [ woman ] the cadillac summer collection is here. ♪ ♪ [ male announcer ] during the cadillac summer's best event, lease this all-new 2014 cts for around $459 a month or purchase with 0% apr. hurry in -- this exceptional offer ends soon. >>> welcome back to "squawk on the street," apple shares hitting a fresh all-time high in today's session as highs a hundred dollars, 77 cents a share, a day after apple broke that $100 mark forget first time since splitting this year. apple last set a high in september of 2012, and struggled after that. right now, it is up -- down just about a fraction. about a quarter of a percent. simon? >> thank you very much. let's stay in big tech. steve ballmer resigned from microsoft's board late thursday in a note to the new ceo, ballmer said, quote, given my confidence in the multitude of new commitments i'm taking on now, i think it's impact call to cont

across the board, housing data it was all really strong, but don't you attribute, at least with housing, a lot of those asset price increases are driv by the fedd it's made housing less affordable for middle and lower class people. >> but half of the buyers are cash buyers. they don't use credit. i agree with chris, we're not going to see a housing recovery -- you'll probably see negative prints in case-shiller by the end of the year. >> chris? >> no way. >> sorry. yeah, chris. we have two chriss here. >> chris one and chris two. why don't you think home prices are going down? >> i think they're going up. look, from a long-term standpoint, affordability in our housing markets is still very good. if you look at say the percent of income you would use to buy a home today, it's about 30% of the median household income in the u.s. compare that to 35% -- >> if you can get credit. >> but you can't get credit. >> that's just it, credit's starting to loosen up. look at the numbers. say for example the average fico score for loans made through fannie, they're actually starting to come down. >> what's also happening is that -- >> we're not going to do a

board. euro is trading at 1.3378. dollar/yen at 102.32. gold, $1,305.90. >>> from geopolitical concerns to uncertainty about the fed, the numbers are dealingh a number of question marks. joining us now, chris rustler and coportfolio manager of the ne needham portfolio, as well. jerald, started something big, correction, buy the dip? >> it doesn't look like something big. global stocks are off about 3% to 4%, michelle. i think what you're seeing is we've seen about five of these mini corrections since 2012 and the euro crisis. this looks like another one. kind of that 3% to 6% number. and then the buyers step in. the fundamentals still look good. valuations aren't stretched. >> so you're not telling people wait until we get to the 10% mark and then get in? >> no. i think those 5% corrections have been a good chance to add to risk and not take away from them. >> but we're going to get one some day, aren't we? >> we will. we will. but in the interim, what you're seeing is the economic data. so you're seeing employment, unemployment claims, ism numbers, pmi numbers, consumer confidence, a new cycle high. all of the data into q3, what we've see

board has more clout and more power than a president on economic matters. the president has tremendous power on military matters. so on economic matters, the chairman offed the feds very powerful and its done in secrecy and that's the big problem there, and that's why i argue we should have an audit. you ask about what should be the traditions on trade agreement. the constitution said that congress should be in charge of trade agreements and they should be -- it was assumed to be bilateral. so if the congress wanted to act on free trade zone between the united states and canada, congress could pass a law and set the trade standards. flash... ... traders, didn't want a lot of barrier and did not want a lot of problems even though it was legal to put on tariffs. but when you have these trade agreements, multilateral trade agreements -- the word is the wto -- they're nothing more than groups of big companies getting together and get permission to put on sanctions when the feel their competition is harming them. so they spend as much time putting on tariffs to prevent imports in order to protect what they're selling, as they do trying to reduce tariffs. so we depth