expands moderately over the next several years the fomc believes.in the testimony repeats the fomc pledge to complete asset purchases after the october meeting if data supports an improving economy. on interest rate policy, the decision about the path of the feds' fund rate remains on the information, and two key what-ifs. if labor market conditions improve more quickly, then the rate increases would occur, she says, sooner and more rapidly than currently envisioned if disappointed, the future path of of interest rates likely would be more accommodative. there is a concern to wrapping up the testimony here, if you will, about financial stability. she says specifically on the question of low rated corporate debt, we are closely monitoring developments in the leverage loan market. highlights from the testimony that should begin momentarily and then, of course, the all important question and answer session. back to you >> thank you very much, hampton. we are seeing yellen taking a seat there in front of the committee. let's bring in senior economics co

now, we do give participants in the fomc, these are not fomc policy statements, but we have provided in the monetary policy report and we provide every three months information about each fomc participant's assessment of both the economic outlook and their views on the likely path of monetary policy. so again, this is each individual's view walking into our june meeting as a committee. we have to transform that into a single policy. but it gives some indication, i think, and given their expectations for progress in the labor market and inflation, at the beginning of our june meeting, fomc participants almost all of them, saw it appropriate to begin raising our target for the federal funds rate some time during 2015. the median participant saw the federal funds rate by the end of that year standing around 1%. so while there's no exact timing of obviously in 2015, it's not -- it's in some sense roughly consistent with what you said, but market expectations are, but again, i want to emphasize that the actual progress we see in the labor market and inflation and our general assessment of

fomc participants currently judge these risks to be nearly balanced, but to warrant monitoring in the months ahead. i will now turn to monetary policy. the fomc is committed to policies that will promote maximum employment and price stability consistent with our dual mandate from the congress. given the economic situation that i just described, we judge that a high degree of monetary policy accommodation remains appropriate. consistent with that assessment, we have maintained the target range for the federal funds rate at 0% to .25% and have continued to rely on large scale asset purchases and forward guidance about the path of the federal funds rate to provide the appropriate level of support for the economy. in light of the cumulative progress toward maximum employment that has occurred since the inception of the federal reserve's asset purchase program in september 2012, and the fomc's assessment that labor market conditions would continue to improve, the committee has made measured reductions in the monthly pace of our asset purchases at each of our regular meetings this year. if

fomc participants currently judge these risks to be nearly balanced, but to warrant monitoring in the months ahead. i will now turn to monetary policy. the fomc is committed to policies that will promote maximum employment and price stability consistent with our dual mandate from the congress. given the economic situation that i just described, we judge that a high degree of monetary policy accommodation remains appropriate. consistent with that assessment, we have maintained the target range for the federal funds rate at 0% to .25% and have continued to rely on large scale asset purchases and forward guidance about the path of the federal funds rate to provide the appropriate level of support for the economy. in light of the cumulative progress toward maximum employment that has occurred since the inception of the federal reserve's asset purchase program in september 2012, and the fomc's assessment that labor market conditions would continue to improve, the committee has made measured reductions in the monthly pace of our asset purchases at each of our regular meetings this year. if

james, what are traders saying about the fomc?is is a non-event here just like we have seen the last couple months going into the minutes, had a very choppy trading range. the minutes come out and stake out highs. isn't the futures are 15 points off of all time highs after a very natural pool that going into earnings season. alcoa reported better than expected results. is not the bellwether stock most investors think it is that it is good for the cycle coming ahead. expectations are high and the driver the next leg higher will be earnings. melissa: a 72 on the dow. whether it is on wall street remains free guess who is making money? starting with interns at twitter, the interns of $81,000 a year, $7,000 a month. way more than the $6,000 you get at facebook and it comes with of valuable perk like free housing, transportation, not to mention free meals. trying to make some money, very angry john the duke wayne, members of his family want to use his nickname on a special brand of duke liquor but do university didn't like the sound of

fomc participants currently judge these risks to be nearly balanced, but to warrant monitoring in the months ahead. i will now turn to monetary policy. the fomc is committed to policies that will promote maximum employment and price stability consistent with our dual mandate from the congress. given the economic situation that i just described, we judge that a high degree of monetary policy accommodation remains appropriate. consistent with that assessment, we have maintained the target range for the federal funds rate at 0% to .25% and have continued to rely on large scale asset purchases and forward guidance about the path of the federal funds rate to provide the appropriate level of support for the economy. in light of the cumulative progress toward maximum employment that has occurred since the inception of the federal reserve's asset purchase program in september 2012, and the fomc's assessment that labor market conditions would continue to improve, the committee has made measured reductions in the monthly pace of our asset purchases at each of our regular meetings this year. if

provided -- that all purchase of pens in the fomc provided at the june meeting. they depend on each participant's personal economic outlook and they are not a policy statement of the fomc, but they provide some sense of concretely what participants expected at the beginning of that meeting. and those rejections show that thatojectsioions show almost all participants indicate if things continue on the trajectories they expect, would come sometime in 2015, and the medium projection for where the federal funds rate withstand at the end of the year was around 1%. so a positive but relatively low level. i think that gives you a feeling for what participants throug thought would be appropriate. i want to emphasize that what actually happens, our projections change with incoming data. the economy is uncertain. will actually happen clearly is going to depend on progress the economy makes. but i think that is consistent with the forward guidance that is contained in the fomc statement as well. >> thank you. based on the minutes of the most fomc meetings, the discussion of

looking to the economy, the fomc says since it last met in june, the indications are that growth in the economic activity rebounded in the second quarter, the labor market conditions improved with unemployment rate declining further, however, a range of indicators suggests that there remains significant underutilization of labor resources, household spending, business and fixed investment, while the recovery in the housing sector remains slow. inflation has moved somewhat closer to the committee's longer-run objective. longer-term inflation expectations are remaining stable. turning now to the future of interest rate policy, the fomc says in determining how long to maintain the veero to 0.2% target range, both realized and expected towards its objective of maximum employment and 2% inflation, they say this inflation will take into account a wide range the information, include measures of labor market conditions, and inflation expectations and readings on financial developments. the committee is currently anticipated that even after employment and inflation are near mandate consistent le

very explicit at the fomc that they will finish in october. we might see the start of the exit strategy. moreuld be they will talk about the next phase -- our view would be they will talk about the next phase. >> talk to me about how this plays out in the treasury market. out for thes play back half of this year? we think the yield will get to three percent. it will depend on the data. ,f we see that payroll growth all of those things point to much higher 10 year yields. >> very quickly, if we get the tightening in the treasury market, does that mean tightening for the federal reserve? >> 50 basis points is not very much. it is not enough to derail the economy. wilson, stay with us. we'll be back in about two minutes time. airbus grabbed the early lead over boeing. we are live at the world's biggest air show. microsoft reboots, the biggest job cuts in five years. david cameron cabinet reshuffle. william hague is out as the foreign secretary. stay with us. we are on the move. ♪ >> welcome back to "on the move ." streaming live on your phone, ap

in the labor force, yep. >> that's the signal from the fomc.o continue to keep rates low. that's why we saw that pop there. so, the whole trend today has been modest economic growth, and that's why i like it. choppy, yes, but modest economic growth, that keeps the market slowly moving forward. now, if we get 300,000 jobs on friday, we're expecting 230,000? is that the number, the consensus number? if we get 300,000, now you're going to get the bulls come out and say, wait a minute here, now we're getting strings way above expectation economic numbers, now we're a little more concerned about the higher interest rates. >> the adp number this morning for the private payrolls less than expected, looking for 281,000, they got 218,000, but we quibble. we get herky jerky numbers every month, right on a lot of this data? >> bill, we're looking at the market as being a completely different place today as it was a year ago. you had the fiscal cliff, sequestration. all the economy had to do was avoid recession and produce a decent earnings number and the

the minutes of the fomc meeting will be out at 2:00 p.m. eastern, with one notable earnings report today to watch for. wd-40 is out after the close. >>> and the big movers and shakers in the media are gathering in the resort town of sun valley, idaho,. the meeting has seen some major deals in the past. this year's attendees including marissa mayer, tim cook and the murdoch clan. >>> stay with us. we'll giver you all the details in two. the cadillac summer collection is here. ♪ ♪ during the cadillac summer's best event, lease this all new 2014 cts for around $459 a month or purchase with 0% apr and make this the summer of style. >>> welcome back to "worldwide exchange." ernings season is officially a beat for alcoa. carlos slim says he'll break up his telecom empire. >>> and both sides claim victory in indonesia's presidential vote. the u.s. earnings season kicks off with a mix of good and bad news. the good? better than 13eexpected results from alcoa. bertha coombs is at cnbc hq with all the details. good morning, bertha. >> good morning, j

beginning the two-day policy meeting today, the fomc, and they will have a special tomorrow -- we willpecial tomorrow at 2:00 p.m.. we will get the market perspective, and that is coming up tomorrow. and we're coming up on 26 minutes past the hour, and that means that bloomberg television is on the markets, and my colleague matt miller is standing by with the details. matt, good afternoon. >> an idea of where stocks are trading. the dow and s&p in the red, 1976y very little change, on the s&p, just under on the dow. a couple of stocks we are keeping an eye on, when resorts --wynn resorts. they haveoperations, seen a decline by chinese patrons. and a turnaround strategy has come under fire from investors when a deal was made to sell at red lobster. that is it for on the markets. more of mark crumpton and "bottom line" after this short break. ♪ ♪ >> welcome back to the second onf-hour of "bottom line" bloomberg television. i am mark crumpton. thanks for staying with us. let's get to some of the stories we are following for you. -- print and investment bank corporate and investment bank ,

they know the charlie fosters are making their voice heard around the table, but the majority of the fomc still believe there is work to be done, and it is not yet mission accomplished. i think the statement reflects that. not a huge change here, but you can see the language, particularly on the economy, acknowledging even the most recent development. janet yellen most likely getting that gdp number as soon as last night and sharing it with all of her colleagues, wondering how that might have shaped, if at all, the course of discussion this morning. >> that brings up a discussion -- a question i would like to pose. 4% gdp. you have inflation moving up a little bit, and there's no reason to think we do not get 200,000 more jobs created. how much of this message is crafted for the markets? how nervous are the markets that the fed will be behind the curve? >> markets should note that the fed has decided it will be behind the curve in the sense that it is willing to allow a little inflation if it allows a lot more labor market healing. seen inflation yet. inflation hawks have been wrong. they

we will get the fomc minutes all stop that will be in porton. -- important. today, but at 4:00, we will all be watching netherlands versus argentina facing off in the second game of the world cup semifinals. the winner will go on to play germany on sunday. some company news for you. citigroup posted an agreement with federal prosecutors to settle a financial crisis. a person familiar with the negotiations of the bank could be fined at least $4 billion. the deal could be final as early as next week. the justice department says citigroup misled investors about mortgage franÇois heise -- while hiking prices -- while housing prices plunged in 2008. restructuring.r i wouldn't want to show shareholders that the company is allergan wants to show investors the company is strong. and by very is selling -- and .lackberry is selling 200 employees will focus on auto entertainment systems. correct front and center, the violence in israel and the gaza strip. this time it is different. there's something distinctly different about israel's hamasse to thomas -- attacks. joini

at the fomc meeting some raised concerns that the overnight facility could increase problems during thearket conditions potentially causing the counterparties to shift funds away from making loans and opting for the safety net and stacked. how will they balance the need for open dedication with the ability to preserve the flexibility showed unintended consequences arise in this important market. i'm also interested in the comments in the use of macro prudential views by the fed. the experience with the tools is limited and many central banks will still have much to learn to use these measures effectively. introducing the concept of managing u.s. monetary policy by regulation and prudential oversight is on test did, and perhaps more theoretical than real. i agree with those that are concerned regulators may not be able to get the timing right. many economists including those at the fed hasn't been very good judges of identifying market bubbles and predicting when the bubbles will burst. your speech discussed the ability of the regulators to change the regulatory standards on the mortgage

fed policymakers, yesterday was a big fomc decision. continuing to trim the asset purchase program by $10 billion, now $25 billion. upgraded inflation. price increases are closer to the 2% target. more dovish on the job market. >> alan greenspan yesterday speaking to bloomberg, talks about the dynamics of how you taper and then get to rate increases. gradualism. >> i just tweeted the comment from stephen englander of citigroup. "no change in policy but prepp ing for a shift in dollar." >> yesterday's gdp report shows the economy rebounded nicely. house ofstory, representatives vote to sue the president for over seven his powers. it has to do with the president changing the way the affordable care act was in force. 5 republicans voting against it. republicans accusing the president of breaking the law. >> may i quote the congresswoman from new york, i used to deliver her newspaper. louise slaughter. legendary. she's a democrat. "a sorry spectacle of legislative malpractice. $12.42 from the newspaper. >> from the new york times, obama'spu

adam: fomc, target of 2% inflation and 6% employment, closer than the fed predicted. experts got it wrong maybe. expectations for fed rate hikes are shifting. onetion, by end of this year. will the fed ignore its own targets or the great rate hike around the corner? cheryl: one tech giant has a big plan to raise amazon to your front door, gave giving you same day delivery on everything from groceries to electronics, even cat food. details coming up. adam: tell us what you think. will the fed be forced to raise rates sooner than planned? tweet us @fbnatb. your answers coming up. ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade. adam: coal stocks fall into the r

side forod government us, we get concerned, not about your blackout period during the fomc meetings,at you should have the blackout period. we do get concerned in congress when you take the blackout period that applies to monetary policy and when we ask you to come in and talk about the regulatory side, you use the argument of monetary policy and the blackout. >> we have no blackout period that applies to anything other than monetary policy and the economy. there is no blackout period with respect to supervision and regulation and it is conceivable that you ask someone to testify and they had a problem with, i don't know what specifically you have in mind here. the blackout period does not apply to supervision and regulation. >> thank you. i agree with you that it does not apply. i would reference the december 2012 meeting. we wanted to have a hearing on , but weor -- volcker did not get a witness because the blackout period was sighted. we want to make sure that there is a blackout period that does not apply. >> it does not apply. this side of the aisle gets concerned about the debt

. >> the fomc met last night and released their latest statement. it seems change is afoot at the central bank. manus cranny has been pouring over the statement. what's new? good morning. >> a little bit of a nuanced change. originally the fed wholly focused on unemployment but we know the world is changing on how you're supposed to set unemployment rates. that sort of goes down to scale, too, if you want to think of it in those terms. there are a range of indicators to suggest there is underutilization and labor resources. the unemployment number is such a big policy part of the decision and that is what they are saying. when it comes to the economy, they are looking at a range of issues not just the unemployment rate and then on inflation, they've actually upgraded. ahead for the hawks hawks upgrading the risk of price increases running consistently below 2%. the hawks are happy. the risk of inflation below 2% will not just be there in perpetuity and the unemployment rate still picking up slack. no statement, no press conference, no new guide. i g

i and other fomc participants continue to anticipate the economic activity will expand at a moderate pace over the next several years. >> but yelin left the door open for an earlier rate increase if the labor market continues to improve. >>> here on wall street today investors are still interpreting yelin's remarks and they'll also be watching the latest stage book record on economics conditions and the earnings report from bank of america. the dow finished up five points tuesday. the nasdaq lost 24 points. asian stocks were mostly higher after asia's news of growth. tokyo's nikkei lost a fraction. former rivals apple and ibm are now working together. the exclusive partnership will try to sell more i phones and ipads tore corporate commerce. they'll look for new money-making opportunities. j pmorgan chase is backing away from making some mortgage loans. they're not making many home loans to less creditworthy borrow borrowers. that's because they've lost confidence even with government guarantees. >>> and the price of gas is going down. for the first time in more than three months the

the first time the fomc has specifically given a date. the bond purchases are an effort to keep interest rates close and stimulate the economy. the fed did not give firm guidance about when the might raise interest rates. the markets broke a two-day losing streak on wednesday but fell on thursday over worries about a european bank. stocks rebounded on friday. the federal trade commission is filing suit against amazon.com accusing the company of billing parents for billions of dollars in unwanted app purchases by kids. they occurred on kindle fire tablets and other tablets. amazon calls this action "deeply disappointing." >>> reports of the death of the personal computer may be greatly exaggerated. a survey released this week shows the pc shipments in the second quarter of the year did better than anticipated. due in part to businesses replacing older desktops. >>> well, europe bubbles up and the fed sets an end to a big program and earnings season is about to begin what does it mean for the markets and perhaps more importantly, your money

suggest buying the fomc option out of the and selling a week before option out oality.alyst. in the next couple of weeks. speaking of tentative moves come at the west is taking some initial steps towards crude oil -- the u.s. is taking some initial steps towards crude oil. you are looking at the options activity in oxon hill petroleum. basically -- the stock has been holding steady. it has been underperforming its peers. with the oil at such high levels and stock really not doing much else, there wil people will be g for them to take the actions they have said they will take. what we saw today was a seller of 30,000. it a fewave bought weeks back for $.80. it seems like somebody is taking some rockets off the table. >> you have a trade for us on mgm. how big is is making a bit of a comeback. -- in vegas is making a bit of a comeback. the convention business or the gaming revenues in business is strong. the gaming stocks have been trending double-digit growth. china is slowing down. we saw that china might not be as bad as we think it is. my call is to buy the august 28

we have heard a lot of noises from the other members of the fomc. the china data is the absolute key. and it is not the one that is scheduled for tuesday, it's also the credit numbers. the credit numbers are a powerful lead indicator for china's economic activity. >> you forgot about boj. they are kicking off their two-day policy meeting today. the boj has an opportunity -- if it wanted to do something in the near tuner -- near-term, it had an opportunity at the april meeting. they revisited the semiannual forecast. they did cut it significantly, the growth forecast. you would have thought they would have significantly reduced to the inflation forecast and that would have led to additional quantitative easing. but they did not do so. something significant has happened. >> do you think they should have? >> i think there was a case for it. yourdruse -- you reduce forecast to such an extent, there is a case to answer for it. i can also make the opposite case, the boj case of quantitative easing leaves anything else in the shade that any other central b

assomething we will monitor the fomc gets ready to meet. the other part of your wheelhouse, china.ived in hong kong. could the chinese government the on the verge of a relapse after weebound in growth yet that will discuss. this is bloomberg "surveillance." we will be right back. ♪ >> good morning. bloomberg "surveillance," i am tom keene. let's get to our top headlines. typhoon matmot of downgraded to a tropical storm with rain and gusts forcing fishing boats into port. still reeling from last week's more powerful typhoon. the death toll rose to 56 people. carrying for trains flammable fuels. several fiery crashes prompted changes. measures include speed limits and testing for tanker safety. president obama's own party is not onboard with his plan to solve the border crisis. senate democrats are joining house republicans to cut his emergency spending request. obama won a $3.7 billion. -- obama wanted $3.7 billion. >> our single best chart. china.sing on a recent rise in iron ore prices in china, this is raw material to make steel, could signal something about the current governmen

a more dovish expectation in the market right now than what the median of the fomc might -- >> meaningd moves though, if they are a little more hawkish -- >> it will be surprising -- >> you'll see some big shifts. >> oh, no doubt about that. >> but is the spanish market pricing that, jeff? if you look around the world they're talking about -- if you look around the world, interest rates are low. and i have been trying to puzzle over what i think -- because there are people out there talk about market manipulation by the fed. where would interest rates be in the absence of the fed. is there a reason why interest rates would be soaring if the fed wasn't doing qe? >> you know, it's -- you don't know because there's such a big -- it's counterfactual such a big impact that they have. but clearly the fed controls the short end of the interest rates. what's unique this time with quantitative easing is their effect on the long end. and so that has been the big surprise this year, why is the long end rallied so much. there's a lot of reasons for that. we'll get in to that conversation. but inte

let's see how things are shaping up. 25%.stoxx 600 down by 0.3 news comes tomorrow, the minutes of the fomcng. specific. it at the touch screen with three stocks to watch. >> one small in london. mobile banking platforms to a included. of a banks they say revenue growth is going 30%-30 3% and it's much less than they had guided. -- 33% and is a much less than they had guided. that is one to watch. , overcapacity, too much competition. earnings are going to drop a cause of cargo and prices. you have emirate. you have qatar. prices are falling. compass group is all. .his loses no irony -- compass group is up. it is a big catering company and do a lot in europe. they are basically cocktails. still under the price of the market. >> thanks very much. we will bring you the top headlines from european finance ministers are meeting in muscles , boosting the use of the -- our meeting in brussels, boosting .hey use [indiscernible] it is on a repeat every single year. bulgaria's finance minister said they have no plans to sell bonds before international investors and not until 2016. the poorest member

however, we will get minutes from last month's fomc meeting. that release set for 2:00 this afternoon. some economists are cautioning investors to remember that this fed meeting we're going to hear about took place before june jobs numbers were out. meantime, the start of earnings season is always a driving force for the market, as well. scott has the details on some of the first reports. >> alcoa beating the street on the top and bottom line. the company says it saw strong results in its engineered products business. meantime, it's looking to cut costs. shares are up nearly 40% so far this year and out after the dow last night, results from the container stores. the company posting a better than expected loss and lowered its full year guidance. the ceo pointing out what he calls, quote, a retail funk saying the container store and its fellow retailers are experiencing slight traffic declines in what he describes as a surprising tepid retail environment. shares down sharply in extended trading. >>> a mixed story for bob echts. the food earnings

>> depends on which fomc member you talk to. >> of course. >> the complexion is changing. contrast in signals is interesting. some are much more hawkish and others very dovish. it is basically keeping the markets on their toes and not allowing the massive complacency over the rate picture. goldman sachs moved their first rate rise forward by about three quarters a couple days ago. they have come more towards bullard's stance. his view is that we are already there in terms of the stimulus we put into the economy. i think yellen is going to maintain this dovish stance and try to -- you have to remember, the recovery in the u.s. is very narrow. it is among the wealthiest individuals who've benefited from a significant increase in asset prices. when you look at home prices below $1 million, they barely moved. what we are looking for is a more broad-based recovery. i speak to a number of people who run small businesses in the states. it is not as broad-based as the headlines figures make it out to be, is it? >> 90% of the population really haven't benefited from qe. qe has just

this afternoon, a policy statement from the fomc. let's talk expectations.s say the adp report is likely to show 280,000 jobs this month. the second quarter gdp figures are likely to be the market's main focus today. growth probably regained speed in the second quarter to the tune of a 3% growth rate. gdp shrank at a

what happens in the september fomc which i think would be more hawkish than the market is the last, if see two times, the market sold off after qe came to an end. my concern will be around september-october. >> that is not far away. it is kind of tomorrow from an investment point of view. this is tactical. coming up.ig change how much volatility are we going to see? than -- historic. you have not seen this since 1995. it shows you how historically low volatility has been. let's look at it one by one. u.k. gdp numbers at 9:30. 0.6, probably going to be 0.7. we get the u.s. gdp number next week and inflation number and nonfarm payrolls. this is a very important week. when we heard the yellen testimony in the senate, the feeling was that it is getting better. if the data is getting better, then if there is any equity correction -- >> you would be happy to have a little bit of cash on the sidelines right now. put that money to work as the market dips on a little bit of uncertainty. i will continue for at least a month and a half and use the opportunity to buy more. >> when you look at the

we will get a take on when the whenay make a ruling and they had to the next fomc meeting on july 30. antonio percent c, portfolio manager at pimco, will join me from california. that is at the bottom of the hour on bottom line. president obama arrives in texas in a few hours. he is facing a growing crisis facing tens of thousands of undocumented children arriving in the united states. phil mattingly joins me now. an emergency funding request has been made. is congress willing to give the president nearly $4 billion? >> like most things that are sent to capitol hill from the white house, this is not tech weakening a warm embrace from either party. there's is one thing there is agreement on, both democrats and republicans. this is a major problem and congress is going to have to do something. senate democrats pledged they would move quickly on the $3.7 billion emergency funding request from the administration. it is house republicans that, as always, are the big question. house speaker john weiner held a press conference -- john boehner held a press conference and said that they need t

i think the fomc is getting more divided. some of the regional governors have gone on record saying they think the policy is too easy and we need to think more about raising rates quicker. really the market doesn't want to see this. it is a bit worried that yellen is going to move a bit more in line with regional governors and policy will be tightened quicker. she doesn't want to upset the markets but she may not have full control. >> when you look at some of these forecasts, the dispersion is so wide. south of 1%, north of 4%, there is no consensus at all. it would be a push to say she did a carnet yesterday but it is more measured. she started to introduce a little bit of uncertainty on both sides of the debate. if the labor market comes in stronger than expected, we might hike rates quicker than you expect. it is her job to evolve that message and make that message more nuanced? >> i think our job is to lead the committee. her personal views are a bit different from the committee at the moment. it is a broader committee co

the first day of the fomc meetings kicks off. stay with us.we have 400 million people who don't have electricity and i just figured that it's time i do something about it. what we're doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. i think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when it's needed by the consumer. a smarter energy system is made with the ibm cloud. the ibm cloud is the cloud for business. >>> welcome back to "worldwide exchange." these are your headlines. a less than healthy set of numbers for the herbalife. shares went lower after hours. >>> bp warns on the adverse impact of russia sanctions as eu ambassadors approve further measures. >>> and the clock is ticking, but no face-to-face talks. argentina is approaching a default. the fed begins a two-day meeting today with the announcement due at 2:00 p.m. eastern on wednesday. they're expecting bond purchase

fomc participants, almost all of them, saw it appropriate in raising our target for the federal fundsate sometime during 2015. it is in some sense roughly consistent with what we said. charles: i think the street, what they got out of that is the comfort level feels like we have a date. the fed property rates in the third quarter of next year, it puts a lot of pressure on our economy. it's recovery, it must gain momentum. it's going to have to gain momentum. the market itself is gaining momentum. the dow 17,000. and the great news is driven by a whole lot of positive news from a variety of factors. matt. i was impressed with the hospital stocks, technology stocks, and composition of the rally was pretty interesting. because the dow was the major index that was up. s&p, and the nasdaq trailed. investors are saying i want to focus on quality names, strong industrial names but want to stay in the market. >> keep in mind, intel is a big part of the dow. intel is up 9% today. that brought the dow 30 up. that's the good news. as we see a sector hit a high. you see a natural pullback. money

looking to the economy, the fomc says since it last met in june, the indications are that growth in thetivity rebounded in the second quarter, the labor market conditions improved with unemployment rate declining further, however, a range of i

in the fomc minutes, they talked about the soft housing indicator. i would say this is a broader housing slow june. it's not accelerating. >> we should have the lumber liquidators move on on the of an 38% decline after apparently there was some speculation that lowes perhaps will take it over. again another decline here, so this is one that we'll continue to watch. meantime, it's a food fight over your palate driven by changes in consumer's tastes. could this be a recipe for more mna activity? sus sarah eisen is naming a lot of people. >> annie's for one, you get a lot of chatter. they make the or gaining mac n cheese. annie's had trouble lately. so far the stock is down 20%. they have been struggling on eps, struggling on guidance. tear brands importantly are resonating with consumers. d.c. capital markets covers food. he says this would be a great bolt on opportunity for a bigger company that wants to get into organics and the other sort of protein is another one resonating with consumers right now, all natural, gluten-free, all of those kind of th

. >> i would say clz a conflict in the fomc, but yellen is still in control. >> i was surprised by lacquer yesterday. they don't seem quite so hawkish, they don't seem like they're saying increase the taper pace right now, bump up the time period. i thought lacquer was very measured. how many months are there? >> i don't know. part of what's happening. at the time of this meeting, fed had the first cpi bulge in its pocket. it's sort of gone away. >> it's noise, says yellen. >> what happened was the pce report came out and the headline was up, that's not much of a shortfall, but nobody is talking about that. >> >> for the report -- -- somebody is talking about it. >> but nobody is answering. >> if i may, let's change the dialogue, because the fed did. same thing, to your point. let me talk about inflation. i know this. i know that i will pay taxes, that i will die, and the fed at some point will raise rates. it's just a matter of when that happens. okay. >> i think you're right about the first two. the third one -- >> i hope you're wrong. so here's my point. we act like higher rates, we bei

we expect it september 2015 fomc meeting. given that we look for relatively benign rate ranges through the balance of this year. my choice of a favorite asset i choose best of a host of bad choices in fixed income. i like intermediate sector of the treasury curve. cheryl: rob stein, mike harris, william o'donnell, gentlemen, thanks to all of you for being here for the top of the show. appreciate it. todd horowitz we will see you in a few minutes with the big close of the s&p. adam: you might call him a man with the crystal ball. one analyst gives us nameses that could beat earnings and some that will fall flat. you need to listen to this one, last quarter he was 100% correct on all his picks. cheryl: plus he is australian known around the world for his expertise on the u.s. economy. that's right an aussie, who loves the u.s. he has a five-point plan what we need to do to boomerang back to growth. he will break it all down coming up. adam: brazil's trouncing at the world cup could mean much more . it could be even bigger hit t

>> well, the fomc stated in 2012, i believe, we issued a set of exit principles in which the principlesertime we sought to normalize the size of our balance sheet and bring it down to the smallest level consistent with the efficient and effective conduct of mop te monetary policy. >> do you call that a current plan or commitment to reduce feds's balance sheet to historic lows. >> it's a current plan, discussing principles for normalization of policy, and as i ktindicated in my testimony, expect we'll be able to give more complete guidance when -- later this year when those discussions are complete, and i fully expect that we would reiterate an intention over time to reduce the size of our balance sheet. >> thank you. the chair now recognizes the ranking member. >> thank you very much. legislation offered by the republicans in our committee last week would require the federal reserve's federal open market committee to issue a rule to dictate the course of monetary policy. in your view, how feasible would it be to design a rule that would act as an appropriate substitute for independent j

that said, next year's fomc is the most dovish fomc composition of voters that of we've got.ts might -- we're not talking about a major spike in rates or or in inflation, either. if the fed does have to move sooner, hallelujah. >> there is the risk of a fed mistake. a lot of times when we get to places like this, the fear rises of a mistake. in this case i think the fear would be that the fed reacts too much to incoming data and moves faster than we think rather than the other side of it. >> that's not what janet yellen will do. >> i actually think the market is ahead of the economy. i'm with steve. i've always rather been on the real value than the economy but i think the market is ahead of the economy. i think if you see a much stronger economy you'll see a market have to come down to meet and then get parallel with the economy, then move forward again. i think a strong number might lead to a pull-back in the markets. >> we could still be in that situation. we'll take it long term even if it means a little more pain after today's sell-off. august typically a weaker month bu

and i think the debate on that within the fomc will be hopefully quite illuminating on that.hat's certainly what people are hoping. my view that the dovish tone at the fed will keep rates pretty low as long as they can. my concern, i look at the unemployment rate down to 1.6%. coming down good for everybody. 6.1 is getting close to that point whether at capacity constraints in the economy. whether in the seventh or eighth innings of the bull market, we're kind of in that territory, but it's not really time yet to think a major setback. >> with labor participation, lowest since 1970. >> that a cloaking device on unemployment where it's at? >> not described as a cloaking event really. socially and demographically, it's not clear how motivated different age groups are to stay and become part of the workplace. the employment participation has been kind of old lately and not what anybody expected. seeing older people stay in the workforce. employment participation, and in the '50s, '60s, into the '70s, higher than before. whereas, people in their 20s are finding it difficult, perh

participants in the fomc are asked what they think a so-called full employment or normal longer run unemployment rate is, and in our -- in the monetary policy report we've distributed in june, they thought that was 5.2% to 5.5%. but, of course, we don't know, and we're looking at all of the things you mentioned in judging the labor force. in judging the labor market. not just the unemployment rate, but a broad range of indicators, including involuntary part-time employment, as you mentioned, and broader metrix concerning the labor market. >> thank you. >> madam chair, you were quoted in a "new yorker" profile this week saying while the economy is improving from the depths of the financial crisis and the great recession, that "the headwinds are still there." and even when the headwinds diminished to the point when the economy is back on track and where we want it to be, it's still going to require an unusually accommodative monetary policy. that was your statement. and that seems pretty consistent with the concern of prominent economists outside of the fed. that current economic conditions and fi

but the real story today -- what janet yellen and the fomc think of the numbers.nk symmetry, think behavior. think a parent having confidence in their child to go off and make their mark in the world. what will the fed do next? what should the fed do next? i know what you need to do next. watch us after the break. r coun. thank you for your sacrifice and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. [ female announcer ] we love our smartphones. and now telcos using hp big data solutions are feeling the love, too. by offering things like on-the-spot data upgrades -- an idea that reduced overcharge complaints by 98%. no matter how fast your business needs to adapt, if hp big data solutions can keep wireless customers smiling, imagine what they can do for yours. make it matter. imagine what they ca

next year, charlie evans is going to be a voting member of the fomc. point, he does not want likete for a rate hike, most people are expecting. he still sees unemployment too high and inflation to low. he said inflation -- those conditions are going to continue through 2015. here is what he had to say about timing. said for quite- some time that highly accommodative monetary policies are appropriate. i think that it could well be the case that it should be early 2016 before we left off. -- lift off. >> he wants to see unemployment fall to was low as 5%. not think wees will see inflation significantly rise. butheard earlier this week that level could be 6%. a big divide in the fed. we will be talking to a lot of fed officials today about that. >> what did he say about the fed' for the end of quantitative easing? >> it is an interesting discussion in the fed minutes about what they're going to do. i asked him if the minutes reflected what the fed strategy is going to be. this is what he had to say. with our largete balance sheet, it will be tougher to ke

thinking the fed is way out of line, but within that, the fomc meetings will come out.ot sure how big of a splash it will make. >> tom, looking forward to that show. let's stay safe side at the sun valley conference kicking off today, meaning a couple of things. billionaires and big corporate heels with the big -- corporate deals with the big focus on tech. the guest list is filled with stars of the silicon valley. we check out the five richest tech moguls expected to attend. >> i'm sure it will be great. the weather is a bit warmer in dallas as well. let's talk about deals and other sectors. let's focus on pharma, and new legal home with our taxes amongst other things. the drugmaker may have to raise its offer for shire. for more on abbvie takeover ambitions, let's bring matt campbell back into the mix. i'm a bit confused as to what is going on. shareholders on board? or maybe not. >> we had a somewhat embarrassing mixup for abbvie, having to retract comments made by rick gonzales about shareholders and committed. this is another one of these horny u.k. takeover law is