>> bill, goodng eve in chairman powell's first conference, the federal reserve hiked rates an expected. no they're going to try to maintain a new range of 1.5% to 1.75%, and theye signaled m gradual rate hikes ahead. the fed increased the outlook for economic growth and lowered the forecast for unemployment, down to 3.6% for next year from the current 4.1%. it raised the outlook for interest rates. not this year. it was one forecast short of going to the four hikes that the market was concerned about. it upped the outlook for next year and for 2020, in fact, t a strong 3.4%. ow it doesn't see a lot of inflation. i asked chairman powell in the press conference, how do you forecast better growth, lower unemployment, but you don't have inflation to go along with it? here's what he said. >> after the crisis, unemployment was 10%, now 4.1%. you've only seen veryraal upward pressures despite the very larging in. that suggests that the relationship between changes in slac and inflation is not so tight. but it has diminished, but it is still there. i think when you see the small changes in une

pretty goodng into growth. we are not seeing a further acceleration.p the inflationary pressures and the pressure in the yield. matt: when you look at paul attila the, that seems to take the market by surprise. i saw warnings from you a few months back but i am going to show this chart, the vixen sugary, we see this massive jump from almost no movement in the preceding monster of the year. do you expect volatility to remain elevated this year? guest: yes. i think it is not going to be much different to what we have had historically. we have to recognize that what we had over the previous 18 months was perhaps not quite as normal and was probably also a result of certain products that have skewed the market, the volatility markets. let me take you to one of my charts. what this shows is dividend yield over bond yields comparing the s&p 500 with the stoxx 600 and the topix. it looks like european equities, out on top. would you prefer europe over the u.s.? prefer europe over the u.s. although we are in a difficult situation because of ae -- we are expect