the federal reserve can do that. they did that for a good part of the cycle. sort of giving you a no-lose kind of put option on the market but the federal reserve, its long history, they have not been able to offset any real fundamental shocks to the economy in realtime that may be a risk for tomorrow. >> all right all eyes on that july meeting. thank you very much for weighing in steven whiting from citi private bank. >>> a new phase in u.s./china trade negotiations, that's how chinese state media is describing upcoming trade talks with the u.s the editorial team at the china daily wrote both parties are in the mood for serious dialogue, but that expectations are too die verb divergent. robert lighthizer said on wednesday he will speak by phone with his chinese counterpart in the next day and a half. they are expected to meet in person at the g20 summit speaking of xi's team, he said they're very tough negotiators, and we're certainly willing to engage >>> huawei's ceo, remember zhengfei has told cnbc that banks were aware of the business activities at the ce

instead, the federal reserve paid banks to hold extra money on reserve and now we have a situation whereks don't begin saving more money at the fed, they have to lower those rates. and that's what the fed's been doing as of last month on the rate that it pays on those reserves. lauren: it seems like internationally, globally there is this pressure to ease, this pressure to cut. but there's no like playbook or rule book about how to go about doing that. this is very much -- this might be one of the reasons for the tweets from the president against ecb president, mario draghi, that might suggest the message that the ecb is sending. >> the federal reserve is in an interesting predictment with trillions of dollars in excess reserves on-hand. if it were to lower the rates that they pay on that too far, too quickly, we end up in a situation where those reserves end up lent out into the marketplace. the solution to this is to gradually shrink the footprint of the fed, lower those asset balances, so that the federal reserve can once again return to its mission and avoid some of these negative ec

his conundrum this is a different federal reserve. they're talking about perhaps cutting rates but not because the economy is in dire straits. that makes this so intriguing. neil: normally when the federal reserve is even talking about cutting rates people say, what do they see, that i don't? normally panic associated with it. we had oddity yesterday, degree today, stocks running up on prospects of interest rates coming down on a trade deal being scored which would mitigate that need to cut interest rates. it is weird. >> i think the fed has room to cut based on criteria that he use. i don't agree with that criteria. there is no argument to cut rates. you scratch your head. even more so now. this is not a bad economy. neil: you make a preemptive trade strike? >> historically we often had fed fund rate over several decades many times much higher than the rate of inflation. this is not a high federal funds rate. interest rates are low. do you hear small businesses saying we can't find credit or we're paying too much? i don't see the arg

in the past when the federal reserve made these decisions, two former federal reserve economists, bill lee and calvin schnorr. bill, what jumped out at you at this meeting? they got rid of the word patient. does that mean they are impatient? i don't think so, right? >> this is one of the best fed conferences i ever heard. chair powell laid out exactly where the risks were, in the business sector, the trade sector, in the global economy. these are the places the fed is going to keep its eye on when he says we are going to monitor the situation and see what implications it has for the forecast because right now, they have lowered their inflation forecast but what's more interesting is they have lowered their long term interest rate outlook. they are telling the world we will have low cost of capital as far as the eye can see and now the key is can you have enough confidence, you business environment, business world, to get investment spending up because that's what's sagging. that's the risk to the economy. i think that's where chair powell is focusing his attention. liz: calvin, what do

dovish signal from the federal reserve boosted demand for higher-yielding assets. junk bonds heading for the best returns since january. that is happening next. this is bloomberg "real yield." ♪ taylor: i'm taylor riggs. this is bloomberg "real yield." i want to go to the auction block. we begin here in the united states. the treasury sold $32 billion in seven-year notes yielding 1.889%, the lowest since 2016. direct bidders coming out in full force purchasing the largest portion since february. the hunt for yield in full swing in europe. more than four times subscribed and priced to yield, 1.71%. u.s. and junk-bond issuance moving at a torrid pace with $8.6 billion pricing, making it the biggest week in nearly two months. june is heading for the busiest month of high-yield sales since september of 2017. still with me his ken taubes, david leduc, ira jersey. u.s. junk bonds hitting fresh record highs or the first time since the financial crisis. jpmorgan is selling the corporate bond rally instead of buying that it. marc lehman weighing in on that strategy today. >

president donald trump once again criticized the federal reserve saying without your own polland the interest rate increases that we've specially seen in the past year the dow jones industrial average would be at $10000.00 points higher whatever the argument here the reason why wall street is still pretty much on trade is the hope for interest rate cut pretty soon even if we traded to the downside slightly here on friday for the week actually it was an up week and it was the 2nd consecutive positive week here on wall street the fed remains under pressure to cut the key interest rate yes quarter there on wall street for us thank you. and to another front of that trade conflict we mentioned earlier india is planning to impose a retaliatory tariffs on over 20 products imported from the u.s. it's a response to washington's decision to withdraw preferential trade treatment for india earlier this month it's expected extra levies will be placed on american elements walnuts and apples among other things a source within the indian commerce ministry has been quoted as saying the us will take a

guest: not if you take the federal reserve at its word. not that you have to come up at they are talking about the negative inflation undershooting that we have, and i think a lot of people including myself are looking at the overall u.s. economy to dictate the pace of the cuts. for my money, the federal reserve is not only behind, they are massively behind in terms of the real economy. it, butwill push overall we talk about 50 basis points to start this off, despite the fact that we are almost at all-time highs in the stock market. it was said that if the president hadn't been pushing the fed, it wouldn't have raised rates as much as it had done. what are the consequences of the tweet today, do you think? steen: i think the federal reserve is losing gradually its integrity. i think it doesn't help that most of their projections have been off by a huge amount over the last 10 years. overall, i think this whole concept of fake news, what is facts, what is not, and don't forget, it is not only an attack on the federal reserve. he was also ta

that will not be created by the federal reserve. last year, the federal reserve was providing a monetary policy outlook also a monetary policy outlook of great answer into that would have been inconsistent with inspection and continuing. but they are not doing that. -- that would have been inconsistent with expansion continuing. let the federal reserve cannot solve every nonmonetary problem. i think that is something that be erring on the side of caution to say that the us would not be the way to fix everything. guy: don't tell europe that, they are relying on the ecb to do exactly that. stephen waiting, thank you so much for joining us. stay with us, we have a great deal of coverage coming up. at 2:00 p.m. in new york, 7:00 p.m. here in london. let's get their bloomberg first word news update with kailey leinz. guy, it was a preview of what to expect in the presidential campaign, when president trump launched his presidential bid last night. he wants the audience won't happen if democrats won control of agreement. >> they would str

well i mean we clearly saw that the federal reserve at least cleared the way verbal e. for a possible rate cut by july even if the monetary policy is not put on autopilot yet a lot will actually really depend on how trade talks will go on specially next week we're seeing ping and donald trump will meet at the g. 20 summit in japan overall the economy is in pretty good shape but weaker global growth and those trade tensions that to some uncertainty and that's why the market does expect a rate cut. by the end of the year now we know that u.s. president donald trump has been badgering drone powell for a while to cut rates and badgering maybe putting it politely what does this decision tell us about his effort if anything. yeah that is the big question if actually finally the pressure has been too big not just from the white cells but also from wall street because traders here are expecting for quite some time now that they are probably by the end of july we will get a rate cut so if all of a sudden the federal reserve would decide to not cut rates so soon that could be act

this is according to the federal reserve.ween 1983 and 2017, black home ownership ticked down by 2 percentage points after years of very little variation. white home ownership has gone up relatively steadily. these are things that this new reparation effort would try to address. hr40 as the bill is known, this is all it calls for, the study of the damage done by slavery and its legacy and the formulation of proposals for programs to increase economic, educational, and other opportunities for black americans. earlier, the economist julian spoke about the structural inequalities that still exist in this country. >> we can go back and look at the minimum wage which exclude farm workers in the south, excluded domestic workers for black women. so these folks were excluded not only from the minimum wage but also from the social security system. i want you all congress people to deal with issues of economic structure how economic structure has generated an inequality that make it's difficult for people to live their lives. when zip

the federal reserve kicking off a two-day meeting today.rome powell surprise the market and cut rates will they raise rates? what will they say about rates >>> a story out of the middle east the pentagon sending another 1,000 troops to the region >>> and facebook making a big bet on digital money will it pay off? it's tuesday, june 18th. you're watching "worldwide exchange" on cnbc. ♪ >>> thank you for being with us on cnbc. i'm brian sullivan it's 5:28. the big story now is actually coming out of europe moments ago european central bank president mario draghi says the bank could ease fiscal and monetary policy again. either through interest rate cuts or outright bond purchases, quantitative easing. if inflation does not pick up in the eurozone the euro currency sliding dramatically on that news against the dollar we're also seeing big moves in the bond market. the yield on the benchmark ten-year bund hitting a new record low a negative yield, 0.29%. eurozone money markets are now fully pricing in an ecb rate cut by december. our treasury y

well what we would always say is of course the federal reserve and jay powell said this himself federal reserve is an independent body and doesn't listen to what the government say but when you look at the situation this is perfect news that don't trump over the last couple of days donald trump has launched his reelection campaign now within the same week he then gets the federal reserve start to say to the electorate start to say to the voters look boring costs are now expected to go down in the next year the next few months so for donald trump this is a fantastic p.r. story number one it says that it takes the shying away from the the u.s. and china trade talks and the on going conflict there in the issues that that's having because domestically in the u.s. says all this is doing is meaning that things are going to get better for the vote for the voter because borrowing costs are going down now the fed all supposed to be independent and they will of course tell you that they're independent and the underlying issue is that there are worrying times for the global economy because we just

the statement says the federal reserve will, quote, act as appropriate to sustain expansion.will closely monitor implications on the outlook. the st. louis fed president wanted to cut rates. on rates, a major change in the dot plot or the outlook of the fed officials for their rates. a lot of disagreement. eight are now forecasting a rate cu

the federal reserve is all but telegraphing a cut in interest rates. an event that could help the president politically in re-election chances. depending on the polls everything looks dicey to pretty good. one poll showing the president doing well. ahead of that, let's go to blake burman with more. >> hi, neil. we heard from jay powell earlier today. he reacted for the first time about the headlines that came out of the white house yesterday in which the white house early they are year looked into the possibility of potentially demoting the fed chair. yesterday the white house didn't deny that they looked into that earlier this year. when president trump was asked whether or not he wants to demote powell, he responded in part by saying, well, let's see what he does. the fed did not cut rates today. at his press conference this afternoon, powell suggested that he feels very safe in his current role. >> i think the law is clear that i have a four-year term. i fully intend to serve it. >> in the lead up to the latest fed meeting, the president continued h

what we are waiting for is the statement from the federal reserve, which we now have, that says the federal reserve leaves rates unchanged and has signaled that they do not expect interest rate cuts immediately. the markets had expected that the central bank would keep the interest rates steady, and that we would get a signal that there would be rates cut in july. i would ask that if we can put out the dow right now to see the response of this. because the markets were hoping for a rate -- they were hoping that the federal reserve might say that there would be an interest rate cut. take a look at what just happened there right after this announcement came in. the market has shot up from where it was. it was below -- it was in the red. it is now up a quarter of a president. now, as everybody's digesting to say, the fed says -- here's several things that have happened. the fed did not change interest rates. the fed did not say it was going to cut interest rates later on. that, we were not sure about what was going to happen. the president, as you mentioned, said he might demote jay powell and

what we're asking is the federal reserve do its job.the bank regulator for big banks like deutsche bank. deutsche bank already has a dismal track record when it comes to antimony laundering activity. they've been penalized many times and now we have a report from the specialist at deutsche bank hogue track antimony laundering activities. they were filing preparing a suspicious activity report about these trump-related entities and they were overturned by higherups and not higherups in the chain of command. higherups outside the chain of command in the private banking section of deutsche bank, the folks who deal with people like donald trump and so the federal reserve really has as obligation to open an investigation into this matter. and hold deutsche bank accountable. >> i just want to read some of the questions that you're asking the federal reserve on this in your letter, you say has anyone from the white house or the department of the treasury communicated with the fed board or the new york fed regarding deutsche bank including inst

the federal reserve is an independent business, right?e focusing on the dual mandate, the fundamentals of it all, the fact that the economy is in good shape and inflation, while subdued, is still stabilised, so while subdued, is still stabilised, soi while subdued, is still stabilised, so i think that taken together should allow the fed to remain on the sidelines for now. and what is your long—term outlook for the world was my biggest economy? you have mentioned that markets are pricing in three rate cuts between now and the end of 2020. where are you in this whole debate about how weak or strong the us is? it all comes at a very interesting time when the global economy and the us economy are infairly global economy and the us economy are in fairly good shape. the consumer in the us, which makes up two thirds of the us economy, labour trends are very positive, wages are on the rise, unemployment at rock bottom levels, so we are actually quite constructive on the state of the us economy. what does that mean, you are constructive? it means

and all these extreme measures new reading street an extreme emergency measures from the federal reserve are going to be regular practices from our central bank and even those from around the world yeah ok let's look at a tweet that you recently posted quote when the total value of equity it was roughly half of g.d.p. a like a was from the mid 1970 s. through the mid 1990 s. the economy was able to lead the stock market but when money printing pushes stocks to become 1.5 times the value of the economy it is stocks that leave the jaideep a labyrinth on this a little bit the difference between even having an economy of a stock i have a michael american still explanatory or $97.00 the stock market drop by 23 percent on monday in one day and if you're months later it was all over with read a recession in 1987 because then it was the value of equities the financial world was a very small part of the overall economy riyad you know a little bit more of a manufacturing economy back then we had an economy that existed outside of wall street back then and you can have a crash crash there's a way w

a discussion on the federal reserve and the impact of its policy on asia.is bloomberg. ♪ this is daybreak asia. i'm kathleen hays. paul: i am paul allen in sydney. jumped after sales topped expectations and return to growth. $11nue rose more than 1% to billion, slightly ahead of forecast. profits were also ahead of estimates. oracle is a beating in the cloud space and amassed microsoft. kathleen: digging deep to compete with huawei, planning and expansion of its chinese retail network over three years. we are told it will spend the money on growing distribution channels and rewards programs to its partners and employees. the move comes amid expectations offer more in china after being blacklisted in the u.s. slack.26 a share for that is in line with the average price of transactions. slack is choosing to trade shares directly on the exchange. it will make its debut later on thursday. kathleen: some interesting breaking news where the head of the bank of korea said the open market community needs to be more dovish than expected. he may find that to be good n

the federal reserve decides later today whether to cut us interest rates, which will send a clear indication on the health of the world's biggest economy. and we're at the paris air show, where some of industry's biggest players have announced their electric dreams for a cleaner future. and forfinancial and for financial markets, the focuses strongly on the fed. global trade tensions, geopolitical uncertainty, it's all playing on the minds of the world's top central bankers this week. the most important, the us central bank. it will tell us later today if it plans to cut the cost of borrowing to shelter its economy from the fallout. this week the us federal reserve, bank of japan and bank of england all tell us the direction of rates. while the european central bank, which met on tuesday, said it's willing to cut rates or launch more stimulus if needed. as tensions rattle the global economy, central banks around the world are moving toward looser policy to keep their economic engines chugging along. in australia, russia, india and chile, central bank bosses recently lowered the cost of borro

we will start with the federal reserve.king ahead to next week, the first question, does the fed drop the word "patient" going into next week? george? george: yes. oksana: no. colin: absolutely. jonathan: five years from now, will the fed policy rate be higher or lower than now? oksana? oksana: higher. jonathan: really? george? george: lower. jonathan: colin? colin: lower. jonathan: the third and final question. on credit, and i've asked this before, have we seen the credit tides of this cycle, yes or no? colin? colin: no. search for yield. jonathan: okasana? oksana: we have not. that is why you have to sell, because it is easy to sell right now. george: i agree with that. you need to sell right now. jonathan: oksana, george, colin, great to catch up with you. that does it for us from new york. see you next friday at 1:00 p.m. new york time, 6:00 p.m. in london. this was "bloomberg real yield." this is bloomberg tv. ♪ scarlet: i am scarlet fu. this is "etf iq." ♪ scarlet: a marriage of convenience, the hottest etf, a fighte

. >> coming up tonight on c-span2 federal reserve chair jerome powell on the u.s. economy. then the debate from the house administration committee on election security legislation. after that an interview with house minority whip steve scalise. house judiciary subcommittee hearing on the voting rights act and the court decision for shelby county versus holder. >> x, federal chair reserve jerome powell talks about the policies. he spoke at an event hosted by the council on foreign relations in new york city. this is one hour. >> good afternoon. welcome today's counsel on international economics. i'm neil irwin at "the new york times" and author of a new book called health when in a winner take world and i preside over today's discussion. great honor to have jerome h powell with us today and the 16th person to chair the board of governors at the federal reserve system and joins us today for the world economy and previously he was a fed governor that he worked in bipartisan policy center and u.s. treasury department and we begin with a few remarks by german powell. [applause]

out,resident is tweeting that does not have any influence on the federal reserve, at least i hope notthe federal to see reserve be consistent and send signals of what they will do so it will be predictable. who knows what they will do when they meet today. david: given that it has gone farther, should it just go on the way? the white house was considering the red county of the president moving chairman palace side -- the legality of the president moving chairman powell aside. should he have that legality? mr. demint: i do not think you should get into that. the president has taken on a lot congress hascause put 70 things off for so long. i would not want to see him wade into another battle. i would like to see them watch with the federal reserve will do. hopefully they will do something that sends a clear signal they will maintain stable monetary policy for the next year or two and that will quiet a lot of the market concerns. david: an awful lot of concern is about trade. u.s. china particularly. economists tell us that as long as we're borrowing this much money we will have a trade

all eyes turning to the federal reserve and possibly three rate cuts.southern border. >>> president trump back to the united states after a whirlwind tour of europe. president trump slammed nancy pelo

why will the federal reserve cu t th reason is a weakening economy followed by inflation running bel fed's 2% target. some believe the federal reserve will be reducin response to the inverted yield curve where short rates are above longer-term rates. pressure from president trump on the federal reserve to cut interest rates is seen as a small factor. f chief u.sancial market economist at oxford economicsn writes response to the survey, the fed will signal if it stands ready to down rates. but it does not want to force it with slower economic data. it is said we have marked down r forecast because of the uncertainty surrounding trade negotiations. even if no tariffs are posed on mexico and the u.s. reaches a trade deal with china, there's the uncertainty another shoe should drop. the trouble with forecasting the economy and then fed steps part from the trade uncertainty. presidents trump and xi now appear as if they will meet next week in july. aositive meeting could remove concerns about new tariffs which sparked the lest hue and cry for rate cuts to begin with, or it could also go t

investors did not appear too eager to buy or sell stocks ahead of next week's feder reserve meeting, but they were eager to sell shares of gottenductors which hav themselves caught in the middle of the trade war with china. add to that the rising geopolitical tensions in the gulf of oman which lifted oil prices for the second straight day and when all was said and done, the dow wasn just 17 points and we're at 26,789. the nasdaq was down 40 and that was the technology stocks there and the s&p was down four and for the week all of the major averages were up only fractionally. mark thsantoli seems tha market is teetering. >> it's something of a crossroads. while the s&p 500 held the gains with the 5% rebound from the start of june. tradingdolume slond the indexes worked sideways ain investors re in suspense on a couple of crucial policy issues. the federal reserve meets next week as the bond market hasov in to price in high chances of a rate cut by july. the slowdown in global growth and decline in the inflation rating as th market essentially lobbies for easier policy to ward off furt

the federal reserve should do nothing. okay they make the argument the argument synchronize global growth it's impacting what's going on with our currency here that's where you have to have some concern >> the big thought is that if they do sort of set the table for a move in july, it changes basically the way we need to think about the fed. it becomes a preemptive organization rather than a more reactive to what current conditions are current conditions, as steph said and jim said, don't call for a cut right now like the urgency that some people are feeling. >> it's interesting to hear jim's take there's still a bit of wiggle room if they go monitor. there are a couple of things that happen between the june meeting and the july meeting there's a g20 meeting. there's a july employment report there's a whole other month's wort of data giving us the last month of the quarter i think if those things begin to show the weakness that's when i think they go. i'm entertaining a new idea here which is the go big or go home cut. >>

patience, it seems, is no longer a virtue at the us federal reserve.held interest rates steady, it has dropped that keyword from its statements, and that is important because it strongly suggests that the world's most influential central bank will cut the cost of borrowing next month. the bbc‘s samira hussain has the details. at their last meeting in may, the federal reserve felt that the labour market was strong, inflation was near its 2% objective, consumer confidence was also strong, and it seemed that the trump administration was close to inking a trade agreement with china. asa inking a trade agreement with china. as a result, america's central bank was unanimous in its decision to keep interest rates unchanged, and to exercise patience when considering any further moves to the federal funds rate. but considering any further moves to the federalfunds rate. but injust a few weeks, the mood has shifted. nearly half of all voting members 110w nearly half of all voting members now believe there should be at least one cut to interest rates this year. f

on use coast waiting for federal reserve today investors are awaiting end of a two-day federal reservedecision at 2 p.m. today and fed chair news conference happening the 2:30 p.m. eastern live join as we get through markets are a little moving today ahead of the fed decision take a look dow futures right now up 9 points s&p 500 exactly where it closed yesterday. and nasdaq up 6 points european indices are mixed and the u.k. is lower but the others are fractionally better on session. take a look at european inked cease actually turned lower across the board. 100 down 29 points and paris down 3 points and dax index in germany down 25. now, of course, president yesterday signaled more stimulus is on the way asian markets after president trump announced that he did speak xi jinping and meeting at the g20 meet next week and hang seng up 2 and a half% on the session. chairman and ceo of black stone steven will join me live coming up, find out how much he's pledging to oxford, university what had it it could mean for future of artificial intelligence. and then this, brett favre comeback agai

maria: robert kaplan president of the dallas federal reserve. go anywhere, more "wall street" after this. what are you doing? big steve? thanks, man. there he is. get to know geico and see how much you could save on homeowners and renters insurance. ♪ there are roadside attractions. and then there's our world-famous on-road attraction. the 2019 glc. lease the glc 300 suv for just $459 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. when crabe stronger...strong, with new nicorette coated ice mint. layered with flavor... it's the first and only coated nicotine lozenge. for an amazing taste... ...that outlasts your craving. new nicorette ice mint. maria: welcome back. next weekend on the program right here, a little taste of americana. we are zeroing in on what is great about america, small business. i will talk with t