potential candidates to head the federal reserve next year, including glenn hubbard of columbia university, suggesting monetary policy would be tighter if they were in charge. we turn to david westin, live in detroit at the north american international auto show. this is where the top automotive and technology executives defined vehicles and industry shipping announcements. david, it is good to have you with us. maybe a lot more about where they are going to be made? david: exactly right. this is the first day. there just about to get show started in detroit, my home state. there are really two big stories. one is trump, with the resident elect tweeting repeatedly last week about -- with the president-elect tweeting repeatedly last week about car companies. trump, it also goes into technology. technology is really big in technology. -- in detroit right now. those are the two big things we we have coming up right now. we will be talking with the chairman and ceo. jon: she has been very tightlipped on the issue of china. many of these countries have been forced to go there and produce the ca

potential candidates to head the federal reserve next year, including glenn hubbard

. >> reporter: glenn hubbard, who ran president george w. bush's economic council, differed from the right. >> i think there were two very big missed opportunities. the first was a failure by the obama administration to focus on economic growth. but there's a second missed opportunity that's really bipartisan and i think republicans share blame in as well, which is the failure to support work. we need to support work by low- skilled people. and that's not a free lunch. that is a dramatic expansion in the earned income tax credit, particularly for childless workers who would typically be younger men and women entering the labor force. >> reporter: let's take these alleged missed opportunities in turn, starting with continuing inequality, especially for african americans. >> in fact, president obama has put in more policies to try to pull that back, through increased improvements in the e.i.t.c., through the affordable care act. >> reporter: that's the earned income tax credit. >> tax credit, exactly. so that we actually saw more progress on r

glenn hubbard, john taylor and -- thealsh are accusing monetary policy cannot solve.oining us is jane. good morning. when does the market price and the possibility of janet yellen being replaced by someone more hawkish? shehe said recently that intends to stay until the end of her term. is inauguratedmp on january the 20th, the market will start to look for signs about what he might do in the months ahead. foricism of yellen is easy an opposition politician to do but once he is in power and what's to retain the populist vote and he cannot retain the votes of many of the people in the middle of america, he may come around to a more dovish point of view. with very difficult to say certainty that he will definitely want to push her out. matt: nonfarm payrolls now. on friday, numbers came out below estimates that the market seems to think this is going to lead to more rate rises from the fed. how did you read that data? it was not just the headline number that was disappointing. hours worked were also less than what we would like to see and the increase in average hourly

glenn hubbard, john taylor, kevin walsh criticized the central bank for trying to do too much to helpruggling with problems that monetary policy can solve. the three are seen among candidates should president-elect trump decide to not nominate janet for another term. senior republicans have warned donald trump that he faces a risk with members of his own party if he does not punish moscow for hacking the u.s. election campaign. graham said he and senator john mccain plan to introduce legislation for tougher sanctions against russia. he said the measures would hit the country in the financial and energy sectors "where they are the weakest." meanwhile, boris johnson has met with donald trump's advisors. sessions involved steve bannon and jerod kushner. johnson then traveled to washington to visit congressional leaders. the trip comes as britain looks to build ties with the incoming administration ahead of the country's withdrawal from the european union. aiib remainsde a i i open to the u.s. joining, that bank'smessage from the president, speaking exclusively to bloomberg. open, andr is

you got john taylor and glenn hubbard, we talked about them eight to 12 years ago as in the mix withe. they are going to be on the top of the list. commentator on federal reserve policy with market background, now at an academic institution out there at the stanford hoover institution. pretty conventional. but donald trump is anything than a conventional politician, right? thoughtated that he janet yellen and the fed left interest rates too low for too long, yet at the same time you know from -- as a real estate guy that he benefits from low rates, so how do we square that with how we think he might behave? don't know exactly. if you look at the last 70 years of the federal reserve chair appointment, most of them were exactly the people you brought towards the top of anybody's reasonable list of potential fed chairs. every once in a while the president picks a ceo type. those generally don't work out quite as well. if you look at the cabinet , mostlyents so far conventional republican picks. leaning towards those more progressive agendas. it's pretty wide open. i would suspect, howev

glenn hubbard suggesting the same thing, saying the fed had overstated shelf life. critical, saying the fed had been on a ride the wind short-termism policy, trying to get unemployment lower while forgetting about inflation. all of these people concerned about where we are going with inflation. get two to's say we three interest-rate increases this year, that is what we are looking for right now. if that happens and one of those three takes over, what do they do to rectify what they think is wrong? mike: that is the issue. none have put a precise number on where they think the interest rate should be right now. the calculation donald trump would make in replacing janet yellen, if that is what he decides to do, he wants to get the economy growing faster, but the fence job is to lean against that. if the economy starts to grow faster, they will raise interest rates. if that happens before his replacement of janet yellen, may be the calculation changes, he want somebody more dovish. it is hard to know. david: you mentioned john taylor's rule, there is a rule on capitol

me, others, have disagreements with congress like glenn hubbard.n ronald reagan ran on them, were called voodoo economics. paper is well beyond voodoo economics. the logic of it, the arguments made, are so far out of the mainstream of any kind of responsible economic thank you -- thinking, that they are the economic equivalent of economicsm or the equivalence of the denial of evolution. [indiscernible] they doubtsay that lackl warming will responsible scientists. so if this paper is a guide to u.s. economic policy, and in practice, i think cooler and more rational heads may well prevail, but the kind of thinking that is implicit in that paper goes beyond any said that has been taken up by any administration. tom: -- dr. bremmer: i think larry just earned himself a spot on the report. tom: we will come back and talk old testament economics of professor summers and ian bremmer. coming up later in the 9:00 hour on television worldwide and bloomberg radio, my conversation with david gura and robin ra .an on the new imf stay with us. this is bloomberg.

what i would do is look to people like john taylor, glenn hubbard, larry lindsay, my good friend andolleague, that people who are sound v a l, ha t of experience no those areas. >> is there a chance he would consider keeping yellen? >> that's happened over and o r over. so whether there's a chance or not, i can't say. i couldn't redistrict. it has happened. >> if the economy is doing well, if interest rates are not excess xcessive -- >> if he keeps yellen and replaces a lot of the fed with more hard money people, how does she run that consensus? as a yellen consensus? does she kind of meet them and shift the ground in their favor? >> i was at the fed for a chunk of time. one thing you see is they're pretty good at working out differences. there's been times when people have been in there with different opinions. right now everyone kind of has a similar opinion. >> one more question. my reporting finds that when it comes to fixing healthcare, there is neither a secret plan nor magic sauce. that the problems or the issues confronting the republicans on fixing this, you either raise the