the fed chair janet yellin say saying that the economy overstates the health, and which means that the economic recovery is not what it should be. >> well, to her credit she said that the labor market has not improved to where we want. to her credit, she said it did not improve, but i would like to see stronger economy. and the participation rate as is the lowest since 1978, and the double-digit unemployment for young people and the economy is still in trouble. >> and is that the right, jonas? >> well, for young people, it is. >> for certain people. >> i invest in corporations, and not young people, fortunately. but what i am trying to say is that the longest fed rate policy has done what it can for the job

from ill you listen for janet yellin? >> the way they refer to under employment, it's underemployment in five, six different ways. let's see if she adds onto some of the remarks she's made before on the same subject. i'm strucking to think she'll say something particularly new on this. >> thank you for going there. does she run the risk of effectively being, i don't mean to sound critical, but a one horse pony. in terms all she ever talks about is slack in the labor department. >> this is something she does need to address and where she has internal opposition. so i think this is something she has to talk about. but, on this particular subject, it's quite hard to say anything new. >> within the conversation scarlet, what i find so important here is fed people's surprise when there's an expectation of no news. they drop the bombshell when you least expect it. -- just trying -- how >> he's the economics guy. >> the fed minutes leading up into this janet yellin comment period, are we set ourselves up for disappointment? >> i

they're not going to be able to communicate it well to markets and some positions will lead janet yellin to delay. >> this is interesting. the fed's stiuck in a little bi of a position and there's a lot figure out if the next move is going to be for rates to tick higher or lower and how the bond market itself drives things. >> absolutely. but what we know is the fed is committed. despite the fact that monetary policy is a blunt instrument, not a surgical tool, we know the fed is committed to supporting this economic recovery so, when they decide to increase rates, it's going to be because thai look they've looked at a big mosaic and feel comfortable. >> what does an investor do at this point? >> it's all about time horizons. for the investor that has a long enough time horizon, they need to have adequate exposure to stocks. >> what does that mean the if i'm looking at investments over the next five years? >> that means you need some exposure to stocks. especially if you need to fund a retirement or an education. what we're seeing is several investors that worry us. those that are risk av

now to janet yellin's speech on friday in jackson hole. will the fed share i chair be as dovich around the horn? >> it was amazing, steve liesman did this great poll and said 6% of investors thought yellin would be hawkish. to me, everybody on the cover side of the boat sets up a nice trade to be short treasuries in. that i have a small put on tlt. >> that expires on friday, just that exact reason. >> the problem with the marketplace, everyone has been on the same side of the boat. i feel they will be the right ones at this point. maybe this is why you can't see banks run. we're looking for interest rates to move a little higher. the banks fajtorred that in. >> are you looking to move out of the market? >> i could be. i think the biggest thing you have to look for in yellin's speech, really, is how long is the fed going to stay low and if they're going to stay low, if they're willing to tolerate a little more inflation than their 2% target. if that is the case, then you get negative interest rates where inflation goes higher than interest r

. >> janet yellin, who is she? >> she's a goal keeper? . >> a goalkeeper, manu or arsenal. >> i think arsenal. >> i think that was wilson's mum in "friend's". >> what is quadruple switching? >> you run down the slide and scream out quadruple. >> ride down the slide and scream out quadruple swiping. who is carl icahn? >> he's the guy that invented na co chips. >> reporter:. >> he's a guy that invented the circus. >> reporter: a headed on fouleders formation? >> i think an african dance show. >> reporter: what's your fate show? >> "fast money." >> that's my favorite show. thanks, young man. >> how emphatically icahn invented chips. we know we are more savvy than the average person on the street. this is video from daniel in ft. worth, texas. >> last week karen feiferman, at what strike does she recommend a buy put? >> that's that dude on the side? >> that's his father, his father. okay, so the question again is at what price does karen recommend buying puts. karen was so excited. she sent us her answer via e-mail. she says i generally go on

the fed chair janet yellin say saying that the economy overstates the health, and which means that the is not what it should be. >> well, to her credit she said that the labor market has not improved to where we want. to her credit, she said it did not improve, but i would like to see stronger economy. and the participation rate as is the lowest since 1978, and the double-digit unemployment for young people and the economy is still in trouble. >> and is that the right, jonas? >> well, for young people, it is. >> for certain people. >> i invest in corporations, and not young people, fortunately. but what i am trying to say is that the longest fed rate policy has done what it can for the job market and it has created a non-asset boom, and it has genera generated a lot of corporate profits on a lot of levels and time to kilt down, but unfortunately, we have a underlying job problem that is going to understood low it. >> and we have to talk about neil's big show tonight, and if we don't do that we will be in trouble, julie. and you know, jonah likes that. neil cavuto has a big special at 1

this is of course ahead of tomorrow morning, janet yellin at jackson hole. looking for clues when they will address the rates. >> i think that the thinking is a reasonable guess given where you think the economy is going. >> we will have to move at some point. i don't want us to be behind the curve in beginning to normal iize interest rates. >> you mentioned financials across the board specifically with the money sector, that did well, the pncs of the world the suntrust, et cetera. >> karen and john took home banc of america. names like wells fargo, they have been slow and steady and wins the race for quite sometime. now they find themselves in the exact same situation. i happen to think the bac might have gotten ahead of itself today. citibank looks good to me as well. >> there was a quote by the portfolio managers now brimoyni can govern. >> there was a bit of the sell the rumor, with that big settlement telegraphed so long and cleared away. i think we are now in an inflexion point where the financial crisis is behind them in terms of, you know, big litiga

this is of course ahead of tomorrow morning, janet yellin at jackson

. >> yeah, i think the best way to interpret both the fonc minutes last week as well as janet yellin's commentary is to say that the fed now sees an increasingly normalizing market environment. that doesn't mean that wage inflation is raging yet at these levels, but it does mean that we can increasingly project with some confidence that as the u.s. economy continues to expand incrementally, we'll get to the point where, as you would expect under normal circumstances in an economic recovery cycle, you'll see more bargaining power in the labor markets and therefore some pick up in compensation for u.s. workers. it is useful to keep in mind that in the recent second quarter labor cost index data in the u.s., we did see a significant pickup in the quarter over quarter rate of wage and salary growth to 0.6% sequentially from 0.3% in the first quarter. and that is a substantial pickup in the sequential growth rate in labor compensation. >> michael, we've got a break coming up which i have to hit, but i just want to get to the actual trade because you think they are emphasizing the emerging m

top of bankers around the world including federal reserve chair janet yellin are gathered this weekendve bank of kansas city's annual -- josh. >> jackson hole. >> is in jackson hole. correct. 300-point question. in a new ad georgia senate candidate democrat michelle nunn is touting the endorsement of this former governor and u.s. senator who famously challenged chris matthews to a dual. josh? >> zell miller. >> that's correct. 300 points. 300-point tossup. president obama's former campaign manager david plouffe was hired this week by this -- >> hoover. >> i'll complete the question. david plouffe incorrect was hired this week by this startup transportation company uber which is headquartered in what city? no guesses? we'll call time. the city is san francisco. 300-point tossup question. before rick perry was indicted last week, the previous sitting governor to be indicted while in office was john roland from this state. josh? >> connecticut. >> he is from connecticut. correct. 300 points for josh. tossup, kentucky senator rand paul also an opthalmologist traveled to this country this w

the fed's balance sheet going from 900 billion to increase asset prices throughout sectors, even janet yellinhis july 15th was talking about pricing excesss in biotech and social media stock. >> before you get involved, i'm sim pa thetic to this fed argument because some smart people are talking about, that there must be some, you know, some long-term effect of having these almost emergency accommodations that we're seeing even in an economy not that bad. yet, here they, are still fully involved in our lives five years after a five-year report. we're still at zero. >> you are referring to drunk tru -- truck drukkenmiller. >> if you saw the jobless claims and said we are at zero. people would say you are not a zero in interest rates, nowhere the fed could be that wrong about where they should be, how does it manifest itself? is a a dislocation, rates rise too fast? how does it hit the fan? >> i tell you, this is such an unprecedented circumstance where we have central banks really around the world doing the same thing with quantitative easing. you see the chinese credit system out of control t

. >>> when we return, janet yellin will be speaking friday from jackson hole, perhaps dropping cluesst rates. her thoughts on labor markets. we will speak to congressman paul ryan about the state of jobs when we return. as we head to break, take a look at u.s. equities futures. >>> we have red arrows, opening off about 20 points right now. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase. . >> welcome back to "squawk box" on this wednesday morning. take a look at retail stocks on the move. a big earnings day for the sector with target reporting quarterly profit that fell short of estimates. the company cutting its four-year outlook. that data breach is costly for the company. however, it is seeing signs of improvement in the economy as it tries to reverse customer traffic. in premarket trading that stock is down 1%. retailer staples fell sharply from a year ago. quarterly earnings did beat estimates by a penny. they are making moves to increase online sales as well that stock up three.75%. we are watching shares of american eagle. they did

leading some research meeting, do you sit around with your employees and say how can we figure out janet yellinhigh end and no one can save and get any return on savings, it's a bifurcated world right now, do you talk about that to try to physical out which stocks can still do well? now they call it the new neutral? rates will stay at zero forever. do you talk about that? >> constantly. if you were at our morning meeting this morning and on monday, we're going around the room, where it's gaming and lodgeing and what's happening in las vegas. whether it's restaurants and pizza craze. my gaming an a list chris jones is all over vegas, my pizza restaurant analyst is talking about pizza and joe fieldman our analyst is down at wal-mart now seeing water happening with the discounters. there is a change going on and the change is it's less worth. hopefully, that means better things for holiday 2014. because black friday is coming before we know it. >> so will it change when the labor market gets a little tighter and people can ask for a little more money and we do see some income growth if terms of wa

janet yellin will be speaking and usually they utah that platform to make a report on policy. there could be a bidding war. dollar general wants to buy family dollar for $8.9 billion and three weeks ago i told you that dollar tree made a bid for family dollar. here comes dollar general swooping in with a higher after. so it looks like some consolidation is ahead. there is pressure at the low-end consumer market. and some of them are struggling to get together and drive growth, guys. >> there is the kale eating sarah eisen. thank you for being with us. >> bill clinton is in cahoots with a ruthless politician that we all hate to love. you drop 40 grand on a new set of wheels, then... wham! a minivan t-bones you. guess what: your insurance company will only give you 37-thousand to replace it. "depreciation" they claim. "how can my car depreciate before it's first oil change?" you ask. maybe the better question is, why do you have that insurance company? with liberty mutual new car replacement, we'll replace the full value of your car. see car insurance in a whole new light. liber