. >> how general powell, this is ronald reagan. i think it was my husband is at the interview up to be honest with you. i'm still paying a finders fee. >> nobody plays a song when you walk in the room anymore. >> lord and bring the coffee. >> people wouldn't recognize me is i took my time. >> i don't consider myself a journalist. on the left of being an interviewer even though i have a day job of running a private equity firm. >> how you define leadership? what is it that makes somebody check? was at one point did you realize that you had some skills that were going to rise up? and brooke burns you read they read bible verses, the rates it was that i did not spend a day in a segregated school. i did not have one moment of ever being conditioned to believe that i was less than anybody. when i walked into my first kindergarten class, this was the first time i ever saw little white children that my grandmother did not work for. everybody was doing their abc thing. i was wondering why the children were doing the abcs. teachermy kinderg

. >> hello, general powell. this is ronald reagan. yes, sir.laughter] >> actually i think it was my husband who set the interview up, to be honest with you. david: did he get a finder's fee or anything? >> i am still paying that finders fee. >> no one plays a song when you walk into the room anymore. [laughter] >> laura didn't bring the coffee. [laughter] >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪ david: i don't consider myself a journalist. and nobody else would consider myself a journalist. i began to take on the life of being an interviewer even though i have a day job of running a private equity firm. how do you define leadership? what is it that makes somebody tick? ♪ david: at what point did you realize that you had some skills that were maybe going to enable you rise up? >> my grandmother taught me how to read. so i grew up learning to read and read bible verses. the grace for me is that i did not spend a day in a segregated school. so i did

to see you well yes we know that first impressions count so what was that first impression of general powell on wall street. well jerome paul seems to prefer a clear language other than his predecessors ben bernanke and janitor yellen he is not necessarily an academic he's a trained to a lawyer later he worked as an investment banker and by the way he also sort of mentioned that it might be the right time to loosen financial regulations some quite a bit but he is pretty transparent and that is also what we saw under jenin and also under ben bernanke you know yes let's talk about that economic policy about what's ahead what can we expect for the u.s. economy and especially for that possible fourth interest rate hike. yeah that's what paul hinted at or at least to me he opened the door a tiny bit that we might even see a four interest rate increases this year well he doesn't know we don't know nobody really knows how many increases we will get because that depends on the course of the u.s. and global economy and especially also where inflation moves talking about inflation didn't mention that

chairman powell: retail deposits are sticky on the way up. they generally come up with a lag. >> the time of the gentleman has expired. the chair will acknowledge the gentleman from massachusetts. >> thank you, mr. chairman. thank you for your attendance. a couple of weeks ago, there was a story in "the wall street journal" around etf's. i want to get your thoughts on this. the particular story noted that shares of everything from many factors to banks to oil production companies are rebounding together after tumbling in unison earlier in the month. one factor contributing to the close correlation among the s&p's various sector was driven by the growing popularity of exchange traded funds. etf's usually invest in wide swaths of the market. when that is correlated, it can sometimes increase the volatility. that's what the data would suggest. wondering, does the fed thek there's risks to broader financial system associated with complex etf's? is the fed concerned about that? any ideas? chairman powell: it's an interesting question. i saw that article. we look

february 5, 2003, secretary of state general colin powell gave a speech to the are green with evidenceaq causing the was clear saddam hussein had weapons of mass distraction. it was based each he would later call a blot on his career. his trump and the same thing with a rant? generalspeak with powers former chief of staff colonel lawrence wilkerson. all of that and more, coming up. welcome to democracy now!, democracynow.org, the war and peace report. i'm amy goodman. congress has given final approval to a massive budget bill. without an agreement to protect young undocumented immigrants. the deal was reached in the early morning hours after a delay by senator rand paul am extended debate past midnight, leaving briefly to a government shutdown. the second in recent weeks. this is senator rand paul. >> we have a 700 page bill that no one has read that was printed at midnight. no one will read this bill. nothing will be reformed. the weight will continue and government will keep taking your money irresponsibly and adding to the $20 trillion that. amy: the bill failed to meet the demands of

sherman. >> general powell, welcome. as the chair points out, you're required to be independent and accountable. you're also required to be tall and short. your opening statement mentions great exports but you don't mention that our trade deficit has gone up by $60 billion in the last year. and i would point out that the entire economic establishment in this country has made it almost prohibited to discuss the trade deficit and that's whywe elected, that's why the country elected donald trump president. now, the chair of the subcommittee boasts that we had a good economy in 2017. he's right. we had obama's fiscal policies, obama's tax policies, obamacare, dodd-frank, janel yellen and her big balance sheet and had a great year. as a matter of fact, we have been on a roll since 2011. we were closing in on having a high enough employment rate so we would have a labor shortage and higher wages. we were going well. and so instead of continuing to be on a roll, we've ban have abandoned those policies and have adopted a proflag

family reunification and we would never have seen the leadership individuals by colin powell, general secretary of state and thatin is right his parents would not have been able to come here without the big bad chain migration that my colleagues in the majority to cry today and family reunification and suddenly billion-dollar american companies like kingston technology would never have existed. before john was a billion-dollar businessman he was a self-described mediocre student from china. he wouldhi never have come to america were not for the sponsorship of his us citizen sister and he wasn't [inaudible] when he got here but yet he built a brown keeping company. let's get real. when president trump professes his support for merit based immigration he doesn't have a real plan for allowing a million engineers from around the world to come to candidates and he's ncutting legal immigration to nearly 50% and that's a policy with disastrous implications for the future of this country when you consider basic economic fact. any credible accounts will tell you that without steady immigration

and some people working here, in manhattan's general district, would be keen to hear whatjerome powellas to say about it. it is not helpful for banks to waste money, to spend more than a reasonably need to spend, to achieve these results and objectives. those costs will fall on customers. on most fronts, he is on the same track as janet yellen. she lives with the economy in pretty good shape. it is growing steadily and employment and consumer confidence in the best they have beenin confidence in the best they have been in about 17 years. what we expect from drawn powers more of the same. the markets are expecting a minimum of two rate hikes this year. i think we might even see three, because we are starting to see an acceleration in employment and wage growth, which are starting to pick up. inflation will eventually pick up. inflation will eventually pick up. soi up. inflation will eventually pick up. so i do think that you will see three. but jerome powell how to navigate through uncertainties caused by the tax bill, and america's latest train announcements, to ensure that the index s

all in all, economic outlooks are generally balanced, powell says come although he didn't really discuss deficits or how fast growth might be. no direct comment on the stock market, the yield curve, or where interest rates may end up kamala things he is certain to be asked about by the committee may end up, all things he is certain to be asked about by the committee today. no indication from his paired testimony which way he would be leaning one way or another. alix: listings look at market reaction. it is a -- let's take a look at market reaction. the dollar continuing to gain some strength here as the best-performing currency. you're still seeing selloff in the bond market yields on the 10 and 30 year by about two basis points. in terms of the curve, again selling as you wind up seeing steepening their. in terms of the markets, we still wind up having a pretty call market -- pretty calm market. we will see us equities can continue to hold up at all if we get a hawkish feel syrupy morning -- feel this morning. he's really noncommittal here. is not taking a strong stance that he's not ta

whene all waiting to hear we start to get a sense of the tone that will be generated out of jay powellario draghi set to address the european parliament a little later. of the inflation report out the bank of england, a super thursday, markets pricing around a 6% chance we get a hike out of the bank of england. again, let's come at it from a market angle. to be honest, we are not seeing the great selloff. use futures are dipping a little bit, as well. equity markets are seeing a little bit of pain, enough that much. central banks are going to watch this play out. there is no ripple effect into policymaking at this stage. peter: i would agree with you. in terms of time friends, certainly for the fed this is nothing to worry about. this will not materially impact the wealth. it's a healthy correction in asset prices as far as they are concerned. for the ecb, i think we saw at the last meeting, you can come at with the dovish rhetoric as much as you like, but it will not improve the market yet. when it will improve the market is in march when they present the next forecast. because those

so when the exit strategy for general kelly comes -- gina powell had a line with general mcmaster, anlly, with his military background, for her, she is out of the white house and to line with general mcmaster -- tom: interesting. let's move on the tragedy to what we do each day, jason furman, he has appeared on the show many times, in the wall street journal today with an important essay. actual growth over the next 5-10 years that vary from 1.5% to , imagine you're asked to predict the high temperature in boston on christmas and you may say 43 degrees for the average over 10 years, or 40 degrees, the average over the half-century and it could well end up being 20 degrees or 60 degrees. a brilliant distribution of the uncertainty we have. slower growth is less the fault of the president than of his generation. this is an important essay about the plug-ins of a fiscal certitude. how will the white house handled the very abilities of the tax-cut and burgeoning deficit after it? -- i thinkwhat his that is important because this is the new normal. that policymakers have suggested for quit

and we would never have seen the leadership of individuals like powell powell, a -- like colin powell, a general, secretary of state. that's right. his parents wouldn't have been able to come here out the big, bad chain migration that my colleagues in the majority decry today. end family reunification, and suddenly billion-dollar american technology companies like kingston technology would have never existed. before john tulle was a billion-dollar businessman, he was a self-described mediocre student from china. he would have never come to america if it were not for the sponsorship of his u.s. citizen sister. he wasn't skilled when he got here, and yet he built a ground-breaking company. so let's get real. when president trump professes his support for merit-based immigration, he doesn't have a real plan for allowing a million engineers and inventors from around the world to come to the united states. he's talking about cutting legal immigration by nearly 50%. that's a policy with disastrous implications for the future of this country when you consider basic economic facts. any credible economis

generally decline in yields. in thea rise yesterday wake of the jay powell testimony but we see a more general slide of seven basis points down over the past week. watching treasury positioning as well if you take a look at the bloomberg -- we have to cftc short positions and saw a big reduction in the us short positions as we see more of a sideways to down movement in that 10 year yield. shortingwhen folks are the treasury market and think the price is going to go down that means yields are potentially going to go up. let's get a check now with mark crumpton. mark: we are getting a goods of what happened with hothouse -- white house investigations and according to those were there, hicks ethnologist of the house committee that she has occasionally told which he called white lies for president trump the has not lied about anything relevant to the pressure probe. the panel is investigating russian interference in the 2016 elections. british prime minister theresa may has delivered her harshest criticism yet of the opposition labor party sprint -- plan to keep the u.k. in the european union. >> we will bring back co

general lady has expired. today we welcome the testimony of jerome powell. this is the first time he appeared before this committee and will not be the last time he appeared. as the federal reserve system on february 5th 2018 for a four-year term and severed as the board of governors, 2012. mr. powell serves a the chairman of the federal open market committee. prior to his appointment to the board, chairman powell was a visiting scholar at the bipartisan policy center and a partner of the carlisle group. as a secretary and undersecretary under george bush. he worked as an attorney and investment banker in new york. he received an ab in politics in princeton and a law degree from georgetown where he was the editor in chief at the george down law journal. his statement will be made part of the record and welcome and you are recognized to give an oral presentation of your testimony. >> thank you very much, mr. chairman. >> you're going to have to hit the microphone. >> thank you and thank you ranking member and members of the committee. i'm pleased to present t

generally of two parts. one is time, value and money, and the others default risk. 's don'tumably, ioyr have a default risk. german powell: i think the law is that we shouldn't pay interest on reserves that is greater than the general level of short-term interest rates. thosessman: but short-term interest rate, i guess i see perhaps a need for clarification on the law because those short-term interest rates contained time value money risk but also default risk. a.l. why are -- the real alternative for a financial institution in the market isn't a one-for-one raid. its going to make loans in the marketplace and they inherently yrve default risk that the io does not have. german powell: we are using that tool to set short-term interest rates for the public. and a lot of those will have a credit risk component. the short-term interest rates don't have a big window, as which isrly repo secured by treasuries. questions about to basic roles of the fed is a regulator and a monetary policy entity. is that consistent with how you would see the structure of the fed? german powell: yes. to understand internal operations, do you tra

chairman and chairman powell, thank you for being here and before i ask general question and a broader question, i do note that i think you're my fourth chairman to be able to visit with in this environment since i've been a member of this committee. and i'd like to discuss an issue with you today that you and i have already discussed and my good colleague subcommittee chairman has a bill regarding and that's the supplemental leverage ratio clearing margin and i know that blaine's bill has strong bipartisan support from the committee and the ag committee and it would offset those margin amounts for purposes of slr because margin is the a risk management tool and legally must be kept from a bank's own funds the fed can affect this change of that legislation, however, and your predecessor showed a willingness to look at the issue. i was hoping you might be willing to consider that situation, that sort of a fix yourself >> thank you so we're taking a careful look at the enhanced supplemental leverage ratio and i think our view is that leverage ratio is very important requirement for banks

is a big negative for the markets in general, all the supply and deficits and the spending and borrowing is a long-term negative. jonathan: what is chairman powell's>> the fiscal think creates a boom in the midterm but it is a negative in the immediate term, they have to look through that to a large extent, so yesterday careful about over hiking late in the cycle as the enthusiasm continues to go up in the takeaway the punch bowl. upathan: i have directed with quick questions in a rapidfire round. i'm treasury specifically, by the seller or keep running? y. bu >> keep on running. jonathan: capital credit from here? >> yes. >> yes. >> credit will hang on for a couple more years. >> not yet. jonathan: i am wondering will we have a chairman powell put? >> not this time. >> yes. >> yes i think it is there. >> it is going to have a much higher strike price. jonathan: guys, thank you very much. that does it for us from new york city, we will see you next friday at 12:30 p.m. new york time. 5:30 p.m. in london, will bring you comments and reaction for a full roundtable. this was bloomberg real yield. ♪ david:david: it is 1:00 in washington, and from bloo

powell has to say. i have got to ask this, is general mills barking up the right tree when it comes to its acquisition. and a biotech company with a new and novel way to treat cancer. up 6% just today wait until you hear innovative ways it is attacking tumors. i am talking to the ceo. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley >>> curling has nothing on the stock market when i was on an olympic induced vacation, but then, again, we did well this market has gone from tricky to triumphant. first allow me to set the scene. i like to return to the tote ems of my youth. well, you know, we know earnings can be ephemeral bonds can be fickle and

fiscal deficits and trade deficits generally are associated with a stronger dollar but not this time around. these reasons are a factor in that. forward, jerome powellill be all over the minutes, more so than he has been up to now. what is the risk or probability we see a hot dish -- hawkish fed chair? >> you will not see it in the minutes today? . maybe a week from friday in the report to congress. the risk will rise in june and september. it is too soon to prejudge the outcome. as the tax stimulus and federal spending kicks in later this year. and if the unemployment rate is going lower, they may roll into the june meeting and hike or in the september meeting and hike and guide markets towards for hikes -- four hikes. shery: will there be more concerned with undershooting or overshooting inflation and what does it mean for the risk outlook? >> the way we hear it from many people on the committee is that they fear a substantial undershooting in the unemployment. if that is going down towards 3% over time, you will hear growing concerned that it will result in a non-balance in financial market prices or asset market valuations, or in actual inflatio

general. all of the supply and the deficit -- these runaway deficits and the spending and is a long-term negative. >> what is chairman powell'soes he do? >> he will have the thing that great a negative them in the near term. i think that they have to look through that. he has to be really careful about over hiking late in the cycle with the enthusiasm continuing to go up and not take away the punch bowl. >> i'll have to put you into boxes earlier and wrap up this program with some quick questions. let's run through this very quickly. on treasury -- by the selloff or keep on running? >> buy. >> buy. >> buy. >> keep on running. >> i think credit is still a good place to be, i think what it will hang in for a couple more years. >> david? >> not yet. >> we had a yellen perp and i am wondering if this time is different. will we have a chairman powell hurt will we had a chairman? powell put? matt: no. katy: yes. >> yes. david: it will have a much higher strike price. jonathan: it has been great to catch up with you. that does it for us from new york city. we will see you next friday at 12:30 p.m. new york time. 5:30 p.m. in london.

two and i remind you that the last false scandal ta devin nunes generated whether there had been unproper masking by susan rice and powellow the republicans are saying well, they didn't specifically name clinton and dnc, well, that, of course, is a policy that fbi and doj has observed forever on the applications. not to name u.s. citizen. chris: here is the reaction of republican chair devin nunes. >> they are advocating that it's okay for the fbi and doj to use political dirt paid for by one campaign and use it against the other campaign. and i don't care who you are, republican, democrat or independent, in the united states of america, that is unacceptable. chris: doesn't nunes have a point, sir? >> no, he doesn't and furthermore he has no credibility. we know devin of the midnight run where he goes to the white house to get information to suggest that there had been wiretapping of donald trump, we know that's not true. i refer to unmasking scandal which turns out not to be true. now it turns out that the fbi used as part of much larger fisa application some information that it received from christopher steele, highly-

two and i remind you that the last false scandal ta devin nunes generated whether there had been unproper masking by susan rice and powellw the republicans are saying well, they didn't specifically name clinton and dnc, well, that, of course, is a policy that fbi and doj has observed forever on the applications. not to name u.s. citizen. chris: here is the reaction of republican chair devin nunes. >> they are advocating that it's okay for the fbi and doj to use political dirt paid for by one campaign and use it against the other campaign. and i don't care who you are, republican, democrat or independent, in the united states of america, that is unacceptable. chris: doesn't nunes have a point, sir? >> no, he doesn't and furthermore he has no credibility. we know devin of the midnight run where he goes to the white house to get information to suggest that there had been wiretapping of donald trump, we know that's not true. i refer to unmasking scandal which turns out not to be true. now it turns out that the fbi used as part of much larger fisa application some information that it received from christopher steele, highly-t

powell makes his first major appearance as fed chief in front of congress. the market only looks at that possibility although the ranger now it's about a 6.5 — 7% gdp numbers. generally improving from october to december period. rate remains to be seen the. do you think the chinese forecast is for it to slow down? is it likely to reflect to manufacturing activity this month? this could really be the case. there are some chinese distortions but i think the numbers the macro expansion territory, the market should not be too. the government is focusing on more sustainable growth moving forward, so sustainable growth moving forward, so that current number should not matter too much. for manufacturing. all eyes will definitely be on new fed chiefjerome all eyes will definitely be on new fed chief jerome powell this all eyes will definitely be on new fed chiefjerome powell this week. will he basically say what was already said in the minutes of the previous month? higher inflation and potentially three or four rate hikes in 2018? i think he is one who will champion continuity, in this case we focused on inflation. in upbeat sentiment towards growth. i don't think there's g

general. all of the supply and the deficits -- these runaway deficits and the spending and borrowing is a long-term negative. jonathan: what is chairman powell'sat does he do? thingl: the fiscal creates a boom in the near term but is a real negative for the medium-term, three or four years out. i think that they have to look through that to a large extent. he has to be really careful about over hiking late in the cycle with the enthusiasm continuing to go up and not take away the punch bowl. jonathan: i've got four of you this week. i have to wrap up with quick questions. let's run through this very quickly. on treasury specifically, by the selloff -- buy the selloff or keep on running? >> buy. >> buy. >> buy. >> keep on running. jonathan: does credit still look to be a good place to be, i think what it will hang in for a couple more years. david: not yet. jonathan: we have had a greenspan perp, the bernanke put, the yellen put and i wonder if this time is different. will we have a germ -- chairman powell put? matt: not this time. kathy: yes. michael: yes, a fed put is always there. david: it will have a much higher price. jonathan: great to c

powell become a hawk? >> he needs to address inflation. he is more doveish in general, but the fed will have to start fighting more inflationary pressures. the q.e. is done. charles * the senate ready to vote on a two-year senate deal. but one republican senator holding everything up. it's easy to think that all money managers are pretty much the same. but while some push high commission investment products, fisher investments avoids them. some advisers have hidden and layered fees. fisher investments never does. and while some advisers are happy to earn commissions from you whether you do well or not, fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management. on the only bed that adjusts on both sides to your ideal comfort your sleep number setting. and snoring? does your bed do that? right now during the ultimate sleep number event, our queen c2 mattress with adjustable comfort on both sides is only $699, save $200. ends soon. visi

generally speaking, inflation has been low and stable. >> the chair now recognizes the ranking member for five minutes. powell, with a seat, thevoting president of the new york federal reserve is one of the most important economic policymaking roles in the nation. step down thisl year and the search for his replacement is underway. totorically the new york fed wall street has led to the withtion of an individual close ties to the financial sector. how important is it the individual chosen is a diverse candidate with demonstrated independence from wall street and a strong commitment to the maximum employment mandate and regulatory responsibilities? what steps has the board taken to ensure candidates from diverse gender, racial and ethnic backgrounds are given due considerations? are you prepared to exercise your power as share to reject such candidates to serve as the next president of the new york fed. i know you have a lot on your plate but i have to put this to you. we have got to do better about diversity, particularly at the highest levels. the new am i looking at york fed and the possibility there, we ha

. >> so jerome powell is not an economy but he has been on the fed for a while. generallys a steady hand and i think his speech today was a steady hand speech. >> without a doubt. what market doesn't like are surprises and volatility. he took the baton from janet yellen and said we will continue to gradual hike higher. remember, they've got to move higher. janet yellen put rates artificially low as did central bankers around the world because they were trying to dig us out from under the financial crisis. guess what? we're out of it. >> however, interest rates have been going up. not even the fed control rates but bond rates. so if you are trying to get yourself a 30-year mortgage, that didn't move for several years, below 4% if you have good cred knit buying a regular house. now getting up, some people paying close to 5%. >> if you look at overall stock market, stocks are doing very, very well. remember, the tax cut was an extraordinary win for corporate america and whether or not those corporations opened up plants here, hire people or give raises, you've now put a whole

chairman and chairman powell thank you for being here. before i ask a generaluestion and a broader question, i do note that i think you're my fourth chairman to be able to visit with in this environment since i've been a member of this committee. and i'd like to discuss an issue with you today that you and i are discussed and my good colleague, subcommittee chairman has a bill regarding and that's the supplemental leverage ratio clearing margin and i know that bill has bipartisan support in ag committee and would offset margin amounts for supers of slr because margin is inherently a risk management tool and must be from bank's unfunds and the fed can affect the legislation, however, and predecessor showed willingness to look at the issue and i was hoping that you might be willing to consider that situation, that sort of fix yourself. >> thank you, mr. lucas. so what we are doing right now is taking a careful look at enhanced supplemental ratio and i think our view is that the leverage ratio is very important requirement for banks but it should be a backstop, hi

general gary sailor. health and welfare director dick armstrong, commerce director, megan gronk. idaho state police colonel ralph powell, court of appeals judge, judge malancy, warren jones and many others who left state service in the past year. now please join me in welcoming new and newly elevated members of the official state idaho family. general michael garshack and health and welfare director russ baron. commerce director bobby joe newman and idaho state police, colonel ted wells, state director of labor melinda smizer. tax commissioner, janet trujillo, drug policy administrator nicole fitzgerald and the court of appeals judge, jessica lorello and supreme court justice, richard bivens. [ applause ] >> thank you. i knew you would greet them with all of the warmth and congeniality of comrades in arms because they are our partners in this government. we also are blessed to have back among us gavin. gavin suffered a terrible accident last winter and a difficult recovery to resume his responsibilities at the division of finance. thanks for joining us again, gavin. keep fighting the good fight. i know you will. [ appl

powell in that vicious, ongoing fight. thank you. >> jon: still ahead new developments in the case of general michael flynn.s next on "outnumbered". >> fox news alert and the london-based lawyer is about to appear at the fbi field office in washington, d.c. he is charged with lying to the fbi over contacts with former tron campaign officials. he is checking into the field's office there, he will be in court later today to answer these charges officially. >> thanks for joining us. great to be here. >> "outnumbered" starts right now. >> harris: and this fox news alert, students who survived that deadly school shooting in florida are taking action. first, they attended a funeral for one of the victims of the massacre. 16-year-old after a candlelight vigil at the school last night. in a little more than an hour from now, about 100 kids are going to board buses to head to tallahassee, florida. their state capital. they say they have ideas they want to talk about with lawmakers. they're hoping to make sure no one has to go through what they went through again. this is "outnumbered." i'm harris faulkner. here toda

powell, takes over, today. wall street will be watching that. but traders will also be looking very closely at corporate america, because it's yet another big earnings week. on tuesday, we'll see generald social media company twitter as well, which is expected to post a profit for the first time ever. later in the week, tesla, disney and viacom will all be reporting earnings. joining us is simon derrick, chief markets strategist, bank of new york mellon. good morning. pretty busy, lots of earnings stories. jerome powell into day and brexit stuff here dominating in the uk and brussels as ever, but it isa in the uk and brussels as ever, but it is a big week for brexit? when you look at this week, there are so many interaction, whether it is the bank of england, the brexit discussions or the new chairman of the federal reserve, but the backdrop is we have markets that are starting to take a little bit of a fright about the rise in interest rates taking place in the us. this isa rates taking place in the us. this is a story that has been building since the start of the year and the jobs data and this concern about inflationary pressures in the us is starting to spook the markets. can we g

towill monitor and review headlines generated by ben bernanke and janet yellen's conversation at the brookings is tuition in washington. still ahead, waters on powelltopill stick to the democrat on the house financial services committee on the new fed chairman debut. this is bloomberg. ♪ julia: this is bloomberg markets. i'm julia chatterly. scarlet: i'm scarlet fu. powell made his debut on capitol hill today, sound and up the note on the u.s. economy, signaling the central bank may review the rate hike and that inflation concerns. we are joined by maxine waters, the ranking democrat in the house financial services committee. i want to get from you, first of all, the biggest difference you saw, that you took away from the new chair from his predecessor janet yellen. >> let me say, we had chairman powell in committee today and he answered all of the questions that were asked of him, he talked about carrying on in the manner that janet yellen had done. he seemed very comfortable, and i think the members felt that he was cooperative for the most part. a lot of the questions that were asked of him were questioned that were not exactly monetary policy a

looked at transcripts from meetings that are years old now but highlight that powell appears to be a net skeptic on qe and generalne of the meetings that says, i am quoting here, "we have seem to be way too confident that exit from the balance sheet can be managed smoothly. how much does that matter now? >> it matters, the question is what lesson do you draw from it. i see something like that and i see what powell is saying now about qe his basic line is that it worked and seemed to be a right call. here is the guy when the evidence come in have changed his mind he did not have the exact right instinct early on of the line of some of the hawks there. a line with some of the hawks and separated themselves and despite by the way of what was not obviously the politically right move to make he aligned themselves with yellen and the more sectors and he's solidly behind what the reserve did. he's more to the right of the center when it comes to interest rates. i don't think he's anything but a gradual. >> steve, you mentioned he has access to the -- what kind of communicator he may be, is he going to air on the side of

powell, do you agree that the u.s. housing is in a recovery mode as far as transactions and housing market in general is healthy? >> yes, sir, it's been a gradual recovery, but it's on going. >> along those lines, i want to pick up where mr. meeks cap uno questioned you. i share an article from the hometown newspaper, about black home buyers being refused conventional home loans much higher than whites, even when controlling for neighborhood, and income. and in the same st. louis metropolitan area, they are 2.5 times more likely to be denied than nonhispanic whites. and that's according to two years of recent data. and as you know, where there is loan activity, houses have a chance to sell. where houses sell, people move in. where people move in, restaurants, community centers, and grocery stores are built. and none or very little of that is happening in low to moderate incomes in st. louis or elsewhere in this country. so my question is, what can the federal reserve do to ensure that applicants for home mortgages are treated equally? and the bad actors who steer and red line communities of color are eliminated

powell was asked about that yesterday. here's what he said yesterday. waiting. if we don't have that -- here we go. >> we've been getting up to 2% but generally speaking inflation has been low and stable for 15 or 20 years now. train to the point that it's been stable getting up to 2%. what's your view on that? there are differing views among the economists and people on wall street that maybe we can handle a little bit more than that. >> i think we can. the last inflation number was to .1%. so is significantly below the target of 2%. companies reporting from whirlpool to tyson foods to cisco to ford. so many companies are porting they are hurting their bottom line because of the quantity inflation. oil prices are up 50% in the past year. inflation has been there. i don't think it's anything new to the market. >> of his thoughts on how you're handling this. talking about more later on in the hour about how investors sent stocks handle a rising rate environment. what kind of adjustment is he making? >> i've been surprised how easy they are taking the collection. the market has had such a great run up for so long that people are looking for any reason to pull bac

generate productive capacity through more investment spending. this is the problem with qe and the legacy of the bernanke fed we'll see if we will get a jay powellut the market now will test that thesis, but as you said, we had a significant correction the data looks good, but this will test whether the fed can try to normalize the way some people think they can. >> joe, we did see the dollar strengthen on friday, strengthen yesterday, albeit not much given how weak it's been what is your take on where that goes from here >> to me, the dollar will find a base i'm not dollar negative. feels like the inverse of last year when everybody was long the dollar, positioning was extreme. to me it's moving back the other way. if you believe the u.s. is further ray long in the business cycle, the dollar should catch a bid and it will be okay. i don't look for significant dollar weakness. >> when we look around the rest of the world, is the same true in what you said in your first answer about the u.s., the economic picture is strong, the fundamentals still support it? >> to joe's point, the reason the dollar is finding a base now is because the markets hav

generous, you can give a donation. ihop will donate to children's hospitals and other local organizations. they raised about $3 million on this national pancake day. tracee carrasco came through with us this morning. jerome powellect the market. the latest in a battle between roger caddell and dallas cowboys owner jerry jones. delete now wants the cowboys to pay them. jared max coming up with your sports highlights. we will be right back. ♪ you totaled your brand new car. nobody's hurt, but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do? drive three-quarters of a car? now if you had liberty mutual new car replacement™, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. with liberty mutual new car replacement™, we'll replace the full value of your car. liberty stands with you™. liberty mutual insurance. was a success for lastchoicehotels.comign badda book. badda boom. this year, we're taking it up a notch. so in this commercial we see two travelers at a comfort inn with a glow around them, so people watching will be like, "wow, maybe i'll glow too if i bo

powell. this is an easy money guy somebody the white house can control. i surveillances those easy money policies will continue but also on the other hand that we'll see real growth generateduts and regulatory reform. i'm not too worried about this. maria: i'm not either because you're actually seeing relatively low rates even with the little bit of a move that we saw, and this is all happening for the reasons you wanted it to be happening that wages are finally going up. >> that's right one of the things i think everybody is talking about the number but we're not talking about the percentage of the fall as much of that and it's 2.6%. we've had 2.6% fall the day after a state of the union address by both bill clinton and obama. this isn't that big of a correction, so i think we have to keep that in mind percentage wise. i also think that there's a number of factors that people aren't talking about it could be the fact the pension funds re balanced and started and are shifting elsewhere, but i don't think that and i think people are panicking so let's look how the asian markets open and see if it's really a continuing trend. maria: yeah, i mean by the way, you're seeing a m

but in general, davos -- >> you're just thinking davos. ♪ that's all i could watch what is that jay powell to give his first testimony -- and you have stockholm syndrome you've been over there so long right? you have to get back and assimilate you're back home now back home. embrace it >> in the saddle >> jay powell's testimony as fed chair. what it could mean for equity and bonds. i hope you're not using the excuse that you didn't buy into the correction did you in gonow that you got your correction? are you on the train you know what's awesome? gig-speed internet. you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. >>> welcome back jay powell set to testify before congress later this morning. joining us to talk markets is kamar and brett. we'll have a bit of dueling economists here