lauren: today all eyes on fed chair jarome powell. ahead of that futures are higher across the board. dow up 52. cheryl: in europe stocks higher on u.s.-china trade talks, right now all indices in the green. lauren: nikkei in japan gaining about 1% and shanghai in china up fractionally. cheryl: more bad news for elon musk. fbn:am begins right now. ♪ ♪ lauren: good friday morning, 5:01 a.m., i'm lauren simonetti. cheryl: good morning, i'm cheryl casone. lauren: hurricane lane burying down on hawaii on what would be the biggest storm the state has seen in two decades. cheryl: ray in honolulu with the latest, ray, good morning. >> hey, cheryl, lauren, calm thursday in honolulu, we saw one of the most gorgeous sunsets people have ever seen but in an hour and hour and a half the wind start today pick up. many people in hawaii are feeling the storm's effects, for instance, right now a flash flood warning is in effect for parts of hawaii's big island after more than 20-inches of rain fell there in less than 24 hours, streets were flooded and

charles: breaking news fed chair jarome powell about to peak in summit if jackson hall.ard lawrence with the latest, edward. >> expected to start momentarily and going to talk about the economy, he lays out historical perspectnif the economy to -- perspective in the economy and shows inflation and see the current path of raising rates tbrajly is the way to go and keep going. there's no elevated risk of over 2%. in the speech, quote, we have seen no clear sign of acceleration of 2% and there does not seem to be elevated risk of overheating. that's good news and results in part with the normalization process. powell believes that the economy is good and moving forward and that the fed monetary policy is working as we go forward. in the speech fed chairman jarome powell says there's nonmonetary things we need to fix in the economy, like real wages have not grown for middle-income or low-income individuals, mobility of workers have declined and that speaks to higher job vacancies going forward and decline far more than any other advanced economy. he also said that we have to

lauren: today all eyes on fed chair jarome powell. ahead of that futures a

neil: i thought of you, sir, when this president was criticizing jarome powell, new federal reserve chairmanf anyone could have made a case, you know, it was you with paul at the time, you didn't. was it tempting then, the rates were going up, half a point at a time, what did you make of that and why didn't you publicly state anything? >> well, i guess you're talking about when -- well, i was deciding on who to appoint to be head of reserve bank and i decided that paul would be the best choice because i thought he could take steps even though it was not good for me politically, it would be good for our economy and for our nation and so that was one of the most difficult nations made was to put paul in charge. neil: do you think that caused you the election in retrospect? >> it was a negative factor in the election but i wouldn't say it was the cause of the election, no. [laughter] >> but it was the right thing to do and i'm glad i did it and n retrospect and since then has become a friend of mine, he and i both are good fly fisherman and we get together on fishing and so forth. so paul has b

[laughter] dagen: but after the federal reserve chair jarome powell talked on friday in jackson hilld push to raise rates, the economy is strong near 20% objective and most people who want a job are finding one. the strong growth in income and jobs continue further gradual continues for target range would likely be appropriate. mitch's research says two more rate hikes, i wonder if that is factored one in september and then one maybe in december, and i wonder how much pressure -- how much of a headwind that could be for stocks here? >> i think that's probably what the market has factored in. that's the consensus out there and 2% is kind of, you know, kind of where you want to be, i believe. you know, the market since 1984 with 2% core inflation between 1 and 3% has kind of averaged 21 times multiple, so in that regard, the market is probably somewhat undervalued considering things. so i think that's kind of consensus and i think the market can continue to move up in the face of some increase rates from the fed. >> you know, craig, this is lee carter, one of the things i've been fasci

attach themselves that trump presidency has produced the booming economy, even the fed chairman jarome powellth, back to you for a second, the gop is now closely aligned with president trump, its trump's party by any other name. local candidates in forthcoming elections, you think they should identify closely with president trump and the success of the economy? >> not only should they but they are going to have to. o'neil said all politics is local but trump is in every locality. he dominates the news, he's there all of the time, they cannot separate themselves from him if they want. listen, even beyond the economy, it's not going to be such a bad thing. how long did people talk about in 2015, 2016 how trump was saying all crazy things, he wasn't going to get elected, yes, he's part of it and he will need to be there to gin up the base, remember, democrats have advantage in that their base is excited, the only one who can get the republican base out is donald trump, so economy first, but they'll be other issues that he needs to emphasize, mike pence, you know, wonderful guy, love him, he ain'