jay kaplan with royce dividend value fund.ou again thanks. >> thanks, again. >> there has been a lotot of ta among democratic presidential hopefulless about taxes the rich often arguing this they don't pay their fair share. the proem is no one can agree on exactly how much wealth americans pay in taxes. robert franke edition through the numbers. >> the tax headlines this week were about how the rich pay lower tax rates than the rest of america. articles and op-eds "new york times" and "washington post" and other publications said the first time in over 10 oh o year the richest 400 americans paid only 2 of the income in taxes. while the bottom half of americans paid 24%. the rearch is from a new book by manuel sayes and gler zukman at university of california berkeley advising elizabeth warren and bernie sanders and wealth taxes. the economists looked at estimated taxes paid f that including state, federal, stating with payroll, local and property taxes and then calculated the total of those taxes as a share of people's income.

jay kaplan with royce dividend value fund.gain thanks. >> thanks, again. >> there has been a lot of talk among democratic presidential hopefulless about taxes the rich oftens arguing t they don't pay their fair share. the problem is no one can agree on exactly how much wealth americans pay in taxes. robert franke edition through the numbers. >> the tax headlines this week were about how the rich pay lower t rates than the rest of america. articles and op-eds "new york "washington post" a other publications said the first time in over 10 oh years the richest 400 americans paid only 23% of the income inaxes. while the bottom half of americans paid 24%. the research is from a new book by manuel sayes and gabler zukman at university of california berkeley advising elizabeth warren and bernie sanders and wealth taxes. tht economists looked estimated taxes paid for that including state, federal, stating with payroll, local and property taxes and then calculated the total of those taxes as a share of people's income. te numbers are p

jay kaplan coy manager of the royce dividend value fund thafos joining us tonight. >> you're welcome.first american eagle. this hasonhe combina of a high dividend yield 3.6%. and the stock cut in t half in last year or so. you must love this for that >> well as the contrarian that i am i do love stocks that have been cut in half. but it'slso good when they have a good reason for the stock to go up. let me tell you aut bit a why that is. they are the number one seller of women's jeans in america. they're the number two seller of jeans in total in the country. and there is a -- there is ani cycle. and jeans are back in popularity again. so that's really good. but what's really exceptional is they have a brand called airy. airy sells intimate apparel tou ladies ages 15 to 25. a now more authentic brand it's regular peopl rather than supermodels of the victoria secr. only 23 states you now n and stationwide business. >> sec pick is designer brands. dfw stores and they are lineching a kids >> they put kids throughout the whole chain. that's been really good. navy consolidated and acquisiti

host: jay powell says the fed is planning to expand its balance sheet. and an exclusive conversation with robert kaplan shedding more light on monetary policy. >> it should be limited, restrained, and modest. host: it is all straight ahead on "bloomberg best." host: hello and welcome, i am nejra cehic and this is "bloomberg best." let us start with a day by day look at the top headlines. with the u.s. and china set to talk trade in washington this week, investors were optimistic there would be progress towards a deal. what a bloomberg report threw some cold water on those hopes. chinese and u.s. negotiators are preparing to restart long stalled trade talks this week and washington. china is going into the talks with new reluctance about a broader trade deal. going to talkt about industrial policy or subsidies. those of you that if all of this for a long time will say to yourself -- is in that the core of the u.s. complaint? you are right. this sort of signals that china is looking for not big deal or deal or no little deal. the grand ambition on the talks seems to have muted a little bit. or isbert lig

michael: jay powell said you are not allowed to finish your interviews without saying, it is not qe. mr. kaplan is correct that is not the case, because we are just buying bills. has been buying securities out along the curve in order to lower those term rates in order to incentivize mortgage lending and risk-taking . this will be just related to bills and primarily targeted at overnight funding markets, and making sure we can appropriately set the fed funds rate in the target range. kaplan, that was robert president of the dallas federal reserve and michael mckee joining us from dallas. a pretty interesting interview. what is your main takeaway with regards to, are we getting a better sense on whether the fed will meet the market's expectations or will the market have to meet the fed's expectations? michael: before the last two fed meetings, the market priced in a rate cut and the fed ratified what they were seeing, but we are seeing a little bit of pushback that even though the markets see an 85% chance of a fed move, he and perhaps some others want to see more evidence the economy needs a ra