you see the move to the upside on the back of the jay powell comments. we are checking the bond market. we saw yields pull back a bit here. the benchmark at 4.29%. falling back about ten basis points from the level we saw before the fed rate cut. we also want to check bitcoin after the intraday record just before the fed announcement. you can see here it's pulled back a bit trading back to $76,000 and change. pulling back .75%. >>> we turn to the federal reserve announcing another fed cut rate yesterday. speaking on the back of the decision, chairman jay powell with the thinking on the policy moving forward. >> we are seeing strong economic activity. we are seeing ongoing strength in the labor market. we are watching that carefully. we do see maintained strength there. we feel the right way to find neutral, if you will, is carefully, patiently. that's not meant to have a specific meaning other than the extent the economy remains strong, we have the ability to -- to take advantage of that as we try to navigate that middle path between the two risks. >> and

i just think there's a lot of ways for donald trump, who doesn't like jay powell, doesn't like what jay powell has done directionally, doesn't like the idea of a fully independence fed to put a lot of pressure on jay powell, make his life miserable, and maybe jay powell throws in the towel. powell is very determined. >> i think he will not throw in the towel. >> if i could historical reference, going back to the reagan area, they didn't want voelker in the chair, and at least according to some books, he went in to see voelker and made green he was not going to be renominated and greenspan replaced him. i think this is as strongly worded. if they would warrnt to go down this road, i would not want to be an owner of american assets. >>> i just want to point out, from a political standpoint, the line that says what, are you kidding me? the president cannot fire the fed chair of the federal reserve? is a pretty potent line. >> yeah. >> i think fed chair powell probably did a service to markets yesterday, in terms of providing stability about where he stands on this. i tried to go over in my

not only does jay powell have history on his side, jay powell has the law on his side.things that donald trump as president could do to undermine jay powell's authority and the strength of his word and perhaps even the amount of influence that he wields or the federal open market committee. governors and those regional bank presidents. he could appoint as scott besson, his adviser, has said, suggested, i might add, a shadow fed chair. somebody who would take over for powell when his term expires in 2026. and because the markets are discounting that and pricing in the future, not the past, they would presumably be inclined to listen to that guy, or women, might be a woman, rather than listen to jay powell because he would ultimately be the person responsible for setting policy at the federal reserve. so there are things that president trump can do in a second administration, but sweeping away this would be exceedingly difficult. it would require either some new piece of legislation, a new federal reserve act, or a series of amendments to the existing. it is tough. tough.

some of that tied to what we heard from jay powell.et's have a look cross asset with a focus on the u.s. to year. yields up phase -- eight basis points. those comments seen as relatively hawkish from jay powell. markets pricing in just two additional cuts from this by june of next year. 435 on the two-year. the pound in focus. gdp data out of the u.k.. watch for that. 126 on the pound right now. bitcoin giving up some of its gains. a bit of rally fatigue kicking in for the cryptocurrency. currently down five tents of 1%. rent looking to end the week lower, falling 1% on concerns about a glut in oil inventory. 7180 on brent. let's get to the comments on jay powell. the recent performance of the u.s. economy has been good, giving the fed chair room to lower rates at a powerful pace. >> with labor market conditions in rough balance and inflation expectations well anchored, i expect inflation to come down towards our 2% objective on a bumpy path. we are confident that with an appropriate recalibration of our policy stance, strength in the

he says, listen, he doesn't care about firing jay powell, but he wants to be part of the process somehow. meanwhile, powell's dilemma began long before tuesday's election. some believe it began when it began hiking rates, right? remember, they began hiking rates right here, and all of a sudden with where'd the gdp go? it's gone up. we thought it would go down. all consumer spending, same sort of thing, right? they start hiking rates, and consumer spending got stronger and really has say thed relatively strong. so -- stayed relatively strong. maybe, just maybe the fed has misjudged variable lags or maybe simply lost control. let's bring in chief strategist danielle dimartino booth. your reaction to this initial reaction to the fed, what we heard so far >> well, i think that they're going in this in the way that they want to be balanced. they're saying we're not leaning on one side or the other. the last few meetings they've been leaning on the employment mandate and saying so. they said we see the risk as being balanced between our inflation and employment mandate, and i think he's going

backed away from that in his mind, or is there some way he's trying to figure out on how to remove jay powellt off, president trump has indicated that he would likely let him finish his term, and he would be gone after may 2026. i thought that chair powell if responded many in kind of a belligerent -- in kind of a belligerent way, and it was unnecessary. it made it sound personal, more for him than for president trump. and i want to go back to that story you opened with. what had happened after president trump first came in is the following month, in december of 2016, the fed raised interest rates. that was under janet yellen. in 2017 they raised another three times. in 2018 after jay powell came in, they raised another four times. so that was eight consecutive increases in interest rates after they had been at near zero since the post-2008 crash. and what trump was saying -- and he made his disagreement with the fed's actions very clear -- he said we have record low unemployment, you're bringing in minority groups and people who have not participated before or who are now benefiting from a v

not only does jay powell have history on his side, jay powell has the law on his side. now there are things that donald trump as president could do to undermine jay powell's authority. and the strength of his word, and perhaps even the amount of influence that he wields, or the federal open market committee, fellow governors and those five regional fed bank presidents, he could appoint, scott besson as his adviser had said, and suggested that they should add a shadow fed chair, someone who would take over for jay powell when his term expires in 2026. and because the markets are a discounting mechanism, pricing in the future, not the past, they would presumably be inclined to listen to that guy, or woman, it might be a woman. rather than listening to jay powell because he ultimately would be the person responsible for setting policy at the federal reserve. so there are things that president trump can do, and a second administration, but sweeping away the fomc would be exceedingly difficult, it would require either some kind of new piece of legislation, a new federal rese

maria: how do you expect jay powell to handle president-elect trump. president trump told me in february he would not reappoint jay powell if he were elected so we're not expecting that. do you expect powell to address the trump vic sunny. >> absolutely not -- victory? >> absolutely not. it is money in the bank in at his press conference he is going to be asked about the election. he will definitively push back. i mean, the fed tries as hard as they can at least openly to push back on any involvement relative to politics. having said that, though, the practicality, we saw this in 20221 when the stars aligned for spending, the fed was in transitory mode, they were buying bonds. the government was saying it was transitory. and we had a massive amount of inflation. the reality is, at least from my perspective, i hope over time they will factor in policy changes going forward, the growth scenario, the regulatory environment. but he's certainly not going to address this election specifically. maria: okay. well, maybe he'll say we'll look at trump's policies

jay powell talked about how inflation was stickier.came out and said this seems like a single mandate fed focused on the labor market. yesterday i would argue this became a dual mandate fed once again. really putting emphasis on the cpi report we get out next week. jonathan: mohamed joins us in a moment. we will catch up with mohamed el-erian as wall street posts its best fed day of the year. adam posen of the peterson institute on why rate hikes are coming sooner. former kansas city fed president esther george on defending fed independence. stocks sitting your all-time highs. s&p 500 approaching 6000, notching its 49th record this year. equities having their best week of 2024 as trump takes back the white house and chairman powell continues cutting interest rates. joining us now, mohamed el-erian . welcome to the program. i know you watched the news conference. what was your take away? mohamed: three takeaways. as expected in terms of the characterization of policy, i desire to maintain optionality, and where i really felt for him was

jay powell saying he's not going to be pushed out by trump anytime soon.yesterday for european stocks. looking to end the week on a positive note. ftse 100 futures pointing to gains of 2/10 of 1%. nasdaq futures also flat. a bit of a breather after the rally of yesterday. you saw across is that -- a process at rally. yields fell around 10 basis points. u.s. 10 year yielding you 143. softer buy 1/10 of 1%. andrew bailey saying the cause of rate cuts will be gradual. bitcoin close to that 76 thousand dollar level. currently unchanged in the session. european leaders diverging on the role that u.s. president-elect donald trump might play in the russia ukraine more give speaking exclusively to bloomberg, denmark's prime minister said she had a reassuring phone call with donald trump about the u.s. continuing to work with europe on geopolitical issues. >> we had a long discussion about some of the topics that are a big concern for u.s. and europe. of course the war in europe, ukraine. the closer cooperation between iran, north korea, russia, china. tom: for mor

jay powell told reporters the fed won't "speculate about trump's impact on the economy following the landslide victory earlier this week" but powell talked about the need for fiscal responsibility with the new administration and something he was mum about for the massive deficit spending for president biden. powell also threw down the gauntlet over his own term as fed chair saying he will not resign if asked to leave early by president elect trump. steve forbes and bright bart's john carney will be weighing in on all that in just a memhet onset and first, edward lawrence is live from the white house with all the exciting details. edward. reporter: very exciting details, david. yeah, president elect trump has been no fan of the federal reserve during his first term at times during that term. he has come out and said actually in the campaign that he would not reappoint fed chairman jay powell to a second term. since getting the nod from voters, i reached out to the campaign but have not heard back about if this feeling over the current fed chairman have changed. the fed reserve chairma

it seems to have happened under jay powell's tenure. that is just a coincidence falconer, d i, critical race theory, esg climate change, all of these fashionable but harmful diseases have inflicted, infected the federal reserve. my question is, are the fed, is the fed hiring people from the left in the democratic party deliberately. 2020, four, five, six years, bingo. something is happened here. >> yeah. i would say it is a couple os id universities. particularly in graduate programs. my area and economics among others. the hiring pool that the fed is bringing in people from has moved very much to the left. there used to be a lot of progrowth economies out there. a lot of that literature has moved towards redistribution. one other thing going on. donald trump has changed the electorate. the republican party is now much more of a working class party and the democrats are the parties of the elite. the one year where the fed primarily donated to republicans , it was when mitt romney was the nominee. the republicans were the party of elites

give your reaction of the press conference yesterday from jay powell. >> maria i was really troubledess conference. i think the fed is being a little bit cagey here, um, a little too cute, for the first eight ministry strong growth low unemployment a signal for fed to say keep restrictive policy in place we could see, reduced employment curtail growth, suddenly in september a jumbo cut a new story new narrative switched, now the fed is recalibrating, i have long thought the fed is too proficient too powerful too political i think that, the political aspect seemed a little bit apparent because not only sort of of a dieling frameworks makes it too easy to have selective theory backing their actions, on the one hand if they truly are now intelligently to supply side toward policy no properlying think low unemployment economic growth causes inflation, if they think you increase supply rather than try to cut off demand that would be good news for the incoming trump administration, because it would dovetail with supply-side approach in a lowers taxes lowers regulation, if you can now also

think about jay powell. jay powell is fighting tooth and nail for his legacy.ly if you work for other people i don't know if you get the job done. taylor: okay, well said. reporter: i disagree. the reason mike is fighting tonight is because he doesn't believe in legacy. he already has a legacy. he is known as one of the greatest boxers ever grace this earth. he has nothing to prove. $20 million doesn't hurt but that's someone who doesn't believe in legacy making change, going after things, because he will continue to fight. charles: you want someone working for you if they didn't believe in legacy like it's no big deal? reporter: i think so because i think the average american, this is again, very philosophical. the average american doesn't care about legacy. they want a good life, make a good impact and bring home a good dollar. so i'm happy with that. taylor: i like he compared it to ego. charles: right. well i can tell you someone whose got an amazing legacy and that's our colleague liz claman. liz: wait a minute. aren't legacies for people -- charles: we're

the stocks finishing lower after federal reserve chairman jay powell said there's no rush to cut rates further right now is investors are looking ahead to the december federal reserve meeting. we'll get into, october retail sales at 8:30 a.m. eastern we will break down the numbers and look ahead to the major retailers quarterly earnings numbers coming out next week get a look into the consumer, bitcoin 40 with 90000, take a look 18 state attorney general suing the security and exchange commission over unconstitutional overreach of digital assets. bitcoin 89345. i'll speak with kentucky attorney general russell coleman who is leading the charge, is coming up with the adm our, let's take a look at the european markets, the eurozone looks like this with weakness on wall street, stocks are higher, the s&p 100 is up ten, cat. [inaudible conversations] .and ask index higher by 11 points this is fractional moves higher in the eurozone. markets mostly lower the shanghai composite in china got parted on the session. the others factually moving. joining to the conversation rebecca walser, new yo

jay powell said yesterday he would not resign as federal reserve chairman if trump asked him to do so are on it, european markets are also lower take a look at the eurozone in the red across-the-board down about 71 on the ft 100 and the cac rundown 78 and dax index lower by 200. in asian markets finish mostly lower, china's government issuing $6 trillion worth of special-purpose bonds to replace economic debt and more stimulus coming out of the chinese government this morning. biden's d.o.j. is winding down the, no cases against president-elect trump as a new york city judge is also considering tossing the hush money conviction as well as the d.o.j. does not investigate a sitting president and his focus needs to be on the american people and speculation is growing up to supreme court justices during the upcoming term law professor jonathan turley here this morning and the 8:00 a.m. hour. joining the conversation already logged caroline downey, blonde ski group founder john lonski and cheryl casone. "mornings with maria" is live right now. ♪. maria: it is time for the hot topic of the

jay powell will be speaking later today. the uncertainty is there. will jay powell give clarity? have increased bets that you will get another cut in december. the odds around 80% the last time i checked. the projected forward look on inflation looks a little murkier from here. let's have a look at bitcoin. ties into yields as well. for the moment, expectations around trump. cross above $90,000. $100,000 target is to be laughed off. now it doesn't look that far the way -- have -- that far away. bitcoin can illustrate the overboard nature of cryptocurrency right now. it's at those kind of levels you saw in february. the sec confirmed and gave the green light to some of those spot etf's. you can find that on the terminal. a question for those who are reaching for further gains for the cryptocurrency. big earnings story coming out of the entertainment space. disney is premarket later today. expected deceit decent numbers. studios expected deceit decent games. parts could be a disappointment but they have flagged that anyway. that's part of the mix. streaming, you could get a stricke

trump wins jay powell should resign is my view. >> well, larry.-- larry: you don't have to answer the last part. >> no, no, if somehow the next move is a hike, jay powell should resign. larry: a rate hike. >> yes, and i can't tell you, i think my most s most successful strategy this year, they have a so-called dot plot where they signal what the path of rates is going to be and its been wrong every time. every time. so, beginning of the year, at one point, maybe last november's pricing in five cutses and then giving of the year three and then a little religion and in june it was one and then things weakened over the summer so they came back and this time it's three, but this jumbo rate cut i said it the day it happened, completely inappropriate, and jay powell, there's a study that shows people who have fallen keep looking down at their feet which makes them fall more, so jay powell keeps looking at his feet. he let the great inflation happen, now he's terrified that there's going to be a recession and what happens if we get this inflation like we

we'll hear from chairman jay powell at 23:00 # of p.m. 2:30 .ing me now is the former president and ceo of the kansas city federal reserve e former fdic vice chairman and senior fellow thomas hoenig. good to see you. thank you for being here. assess for us the economy today, thomas. you heard the jobless claims, give us your take on what the macro backdrop looks like today. >> i think economy right now is pretty stable, is the way to describe it. it's continuing to grow as you all know. the employment numbers were in line. you are going to see pressures on wages because people are still trying to catch up with the higher wages but that's no surprise at all. so i think things are as expected overall and that's why you'll see a rate cut today of 25 basis points and then the fed is going to start thinking about december, immediately and so is the markets and we'll see how that discussion goes and that will depend a little bit on the policies that are going to be laid out in the next few days and weeks. maria: thomas, that's where i want to focus wi

the fed commentary change anything for you, they cut rates by a quarter of a point, then there is jay powelle he will raise rates next year. isn't that counter to what were talking about lower rates by 75 basis points and then raise rates next year? >> it will be crazy a little suicidal in the credibility to the fed what you saying inflation is not it to present where we want it the trump agenda is going to make it more difficult to get it there and therefore he saying if we get too much inflation we will have to turn around. i think the probabilities are not high if the fed rates would be really bad news for a lot of people. great to see you, thank you so much. bob doll a new congress taking shape with republicans winning control of the senate north dakota senator kevin cramer coming u where ya headed? susan: where am i headed? am i just gonna take what the markets gives me? no. i can do some research. ya know, that's backed by j.p. morgan's leading strategists like us. when you want to invest with more confidence... the answer is j.p. morgan wealth management new projects means new project

larry: jay powell himself was a republican appointee. mickey bowman is on that thing. from the st.is fed, he's still on there. >> yeah. last one and we have to get out. does this include the reserve banks in the country or just in washington? >> reserve banks in the country and new york reserve bank is the worst of them all. that's really anti-trump and frankly as i said, this should be treated as an emergency for the fed's credibility. they need to figure out why their staff. just the top officials, that wouldn't be as bad. larry: why is it so shocking that trump would appoint a loyalist? my gosh, loyalist. people loyal to his policies and people loyal to him. talk about it with caroline downey, liz peek and monica crowley. going to be ladies night out here onset of kudlow. no. i can do some research. ya know, that's backed by j.p. morgan's leading strategists like us. when you want to invest with more confidence... the answer is j.p. morgan wealth management ♪ i have type 2 diabetes, but i manage it well. ♪ ♪ jardiance! -it's a little pill with a ♪ ♪ big story to tell. ♪ ♪ i take

elizabeth, thank you very, very much and, folks, speaking of jay powell.ry affect jay powell and federal reserve. you know, trump is not a fan. we've got a fed guy joseph wong here and the globe is chimed in and going for them and what do they say and what should they expect? we have former trump state department going for morgan ortagus to break it all down for us. that's next. ♪ so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management. your business needs a network it can count on... even during the unexpected. power's out! power's out! -power's out! power's out

i commend jay powell for bringing up lags on the rent rolls. part of the inflation rate that remains elevated is rent rolls. the new rents have almost no inflation, but the old ones come down with a lag, and so that part of the inflation picture is probably still going to provide something of a ceiling on where the inflation rate is going to be for 2025. i don't think, under the base case, we'll see a three handle cpi inflation rate during the next 12 months. >> bear with me for a moment if you would. steve liesman has come out of the room where he did ask a question to fed chair powell. steve, going in, you called the statement splashless. that's the words you used. were there any waves, if you will, in the comments that he just made? >> no. i think what there was was a guy that was on the beach trying to avoid getting wet from any of the waves that might be lapping on the shore, scott, is how i would describe it, and those waves include a new election, potentially huge new fiscal policies coming down the road. you and jeff were just talking a

stateside also pointing lower this as markets pare back bets on the december cut after the fed chair jay powellays the central bank is not in a hurry. >>> the uk barely holds on to growth in the third quarter missing forecasts with the chancellor rachel reeves expressing dissatisfaction with the numbers. we'll hear from the deputy chief and the bank of governor this hour. >>> and meanwhile, pharma stocks echo losses in the u.s. after president-elect trump taps rfk jr to be his secretary of health senator ben cardin says his cabinet picks are troubling. >> some are shocking appointed to agencies she y ies to abolish it's a strange pick for appointments >>> and a mixed picture for the chinese economy. the country's key industrial sector continues to see weakness >>> very good morning, everyone. let's get a check of how we're trading so far this friday morning. the stoxx 600 at this stage down about .4%. it is a different tone from what we witnessed on thursday the benchmark actually made gains of above 1% on thursday, but indeed, today, we are seeing a negative mood within the investment communit

trump and talk about jay powell and his shortcomings. then we've got senators eric schmitt on the end of biden harris lawfare against president trump. it's all coming to an end and jack smith is going on the unemployment line. then john cornyn waiting in the wings going to talk about his campaign to become the senate majority leader. first up, our very own edward lawrence live at the federal reserve board after today's federal reserve board announcements by jay powell, you probably had to take some tylenol or whatever your favorite headache pill was. edward, tell us about it. reporter: yeah, five hour energy drink. he talks monotone is what we needed here. yeah, the federal reserve has cut a quarter of a percent, 25 basis points and federal reserve chairman said he's seen inflation come pressure blizzard warnings down to the 2% target unemployment rate and he's a wait and see. more cautious when it comes to further rate cuts on this and he defended the rate cut they made today. listen. >> nothing in the economic data suggests there's any

jay powell said they will not speculate on the policies and the timing of those.hey have to look at the economic data here and now. it just does look a little bit better than it was in september. >> i wonder as well if the december meeting is actually more relevant perhaps in terms of the commentary we might get going into 2025 or whether it will be the rate decision that will be the key moment for the markets because it seems that everyone is trying to see what will happen in 2025. for you, when you hear from the fed in december, what will be the key thing you'll be looking for? >> i think we will get anotherp. it feels like they might take down expectations for cuts next year. that will be very key. it will be key to see what the expectations are from the unemployment rate and inflation standpoint and getting a sense in the q&a as what powell is thinking. we don't know how quickly the policies will come through. it will be interesting to see if we get a pick up in sentiment. we know financial conditions have eased off. are we going to see that come through? it r

and that's the challenge for jay powell today. but i will say, we are already seeing an impact for consumers, guys. i'm really closely following longer- term government borrowing costs. because these are very much tied to what we're seeing for mortgage rates in the united states. if you take a look at the 30- year mortgage rate chart, we're seeing mortgage rates rise right now. some parts of this is normal, when the federal reserve cuts rates, you see these borrowing costs rise. but it can also be tied to the prospect of more spending, it can also be tied to the prospect of more inflation. so that's something i think that jay powell will also address today, even as he does his best to avoid talking politics, avoid talking about donald trump, and avoid talking about the things that he doesn't know yet. we have to wait to see what the government do. >> julia chatterley, thank you so much for the update. let's discuss now with pair of analysts. we have mark zandi, chief economist for moody's, and doug holtz- eakin, former council of

maria: quick break and then markets are on the move this morning after jay powell said there's no rush to cut interest rarates. investors are looking ahead to the december meeting now. the word on wall street panel will discuss it. you're watching "mornings with maria" live on fox business. ♪ (marci) what is going on? (luke) people love how the new homes-dot-com helps them get quick answers about any property by connecting them to the actual listing agent. (agent) oh! so, i'm done? (luke) oh, no, no, no! we're still not sure everyone knows that we're the only site that always connects you to the listing agent rather than selling off your contact info. so, we're gonna keep you up there a little while longer. (agent) okay, ya! i'm getting great exposure. (marci) speaking of exposure, could we get him a hat? (luke) ooo, what about a beret? (vo) homes-dot-com. we've done your home work. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned caref

. >> i will say i don't think trump should criticize jay powell, and i don't think jay powell shouldthink so far he's cone a good job. he's -- done a good job. he's managed this economy. it appears as if we're landing, we're going of to have this soft landing, but i don't think he should be criticizing. i think jay powell should stay until the end of his term. stuart: we've got a trump rally on our hands. >> yes, we do. stuart: do you think it has legs? >> i think for a couple of weeks, and then the i think people are going to start to refocus on earnings and the outlook. we've gotten some great earning, but it's been the forward guidance that's actually continuing to push this rally, so i think people are going to start the to focus on that. i don't think they're going to continue to say the rally's buff trump -- because of trump. the economy's good, there's great forward guidance, that's what's going the drive the rally. stuart: stay there, you are with me for the hour. illinois' governor, pritzker, he's warning trump not to come after his progressive policies. >> i would remind yo

we did not get any surprises from jay powell. i would say even though duration outperformed when you look at the term premium components, which is where i focus on in terms of structural shifts in what the market once to value duration at, you still see term premiums picking up. that is more difficult for risk assets once we get to higher levels. i am still convinced of the market will have to push back, if not the administration will try to grow this deficit. it will view the market is saying it is ok. dani: it is a market that has a lot of inputs it needs to grapple with. you mentioned the fed briefly. we will get data this week. is this a market that will be moved for the politics or the data? marvin: i still think it is the politics that are moving things. in the bond market the short end will be moved by data. that is something we can measure more in terms of what the fed response function is going to be for the next couple meetings. nobody really knows how the fed will approach the ministration next year. short-term, whethe

folks, we are awaiting a potential market-moving speech by federal reserve chair jay powell. at this hour fox business has obtained a copy of his scripted remarks. he is expected the say that the fed's aim is, quote, to the return inflation to 2 without a painful rise in unemployment, but to expect, quote, a bumpy path and that the economy is not sending signals that the fed if needs to hurry when it comes to lowering rates. so what we're going to do is we're going to keep an eye on powell's remarks. we've got our eye on the dallas fed where he is giving that speech, and we'll get you a recap or any breaking news. ahead of it though, stocks are wiggling around here. we do have them in the red. coming up, a can't-mis, exclusive interview with donald trump's former chief economic advisor gary cohn on where interest rates could go if the president-elect imposes his promised tariffs and cuts taxes. but we're also seeing firsthand at this hour the power of even just a whiff of plans president-elect trump might have in store for at least one particular sector. that sector, evs. sha

interestingly, you know, so far the trump appointees worked out not because they were all great but because jay powell was brilliant in dealing with congress so that in fact only the good appointees got through. i think that that's less likely to happen in the future, jay is not going to be there. so, in fact, that presents huge challenges for the feds, particularly coming up towards the next election. so that's going to be a huge challenge for the fed, a lot of pressure on the fed to keep rates low, to boost the republicans. that could lead to a lot of inflation, particularly if trump chooses somebody who is willing to be, quote, a low interest rate person. >> of course, powell yesterday pretty unequivocally says obviously he does not believe the president has the authority to fire or demote him so he's going to serve out his term. and that being said, too, even though there is the potential as you suggest for a lot of friction, the fed is already easing, the economy is already strong, it's almost as if there would be nothing really to blame the central bank for at this point. so, you know, why would

donald trump and jay powell, they already had some beef coming into this election. it was amplified yesterday. and just what exactly is going to happen in meantime, rob luna, one of our favorite guests on the show, is always apolitical. wait until he tells you why it was so critical for trump to win this election. he calls it an investor's dream come true. jay powell again, we're going to talk about this, because it was the moment that we were waiting for. but when you think about it, is the federal reserve, basel iii, even the national bureau of economic research, are they into the constitution? why are we so beholdennen to them? the great monica crowley and brian wesbury will tell us, and my story on where we're finding love these days, folks. talk about making america great again. all that and so much more on "making money." ♪ charles: all right, just getting started? i mean, that's the question, right? here's the thing, a lot of people out there dumping -- first of all if, let me talk about the market for a second, a second, because 50 months, 152 return. can we

economy and labor market can be maintained by inflation moving down to 2%. >> that was fed chair jay powellning the rationale for the quarter point cut. powell was asked about the legality of trump. >> some suggest you should resign. if he asked you to leave, would you go? >> no. >> can you follow-up on -- do you think legally you're not required to leave? >> no. >> do you believe that the president has the power to fire or demote you and has the fed determined the legality of a president demoting at will any of the other governors with relationship positions? >> not permitted under the law. >> not what? >> not permitted under the law. >> thank you. >> joining us now, roger ferguson. i will direction, roger, and figure out if the quarter point is likely -- in hindsight to look like the right move whether there's subsequent quarter point cuts or if we're headed higher. the whole idea of trying to handicap how trump -- president-elect trump's proposals, how does it fit into monetary policy and some would be inflationary and somerecessin of both. i could see us raising rates because inflation

we talked about jay powell, he's made comments about jay powell.executive authority in this country, should the president be the chief executive officer, should he or she have the ability to hire and fire people, are these so-called independent agencies really the way things should be structured? you'll have that debate, yes. i don't think you'll see dramatic change, but have that debate for the first time in a generation. >> i know you got to run. is that a healthy debate? >> i think it absolutely is. should the president be -- 1700 people worked for me at the cfpb. i could hire and fire seven of them. that's a debate you're going to have. >> hey, andrew. >> go ahead, john. >> andrew, i think an easy one here for the new administration and the new senate should be financial literacy. it should be easy. financial literacy for all. k through -- kids, children's savings accounts, graduate from college, get them financial literacy all the way through college. that will do a lot of what i said earlier and help to bridge the division of economic prosper

starts with the chairman jay powell and reserve bank presidents and the board statue of liberty i wantgo back to the dei thing. it keeps popping up in conversation. is the fed guilty of being infected with dei. >> mission cream for a long time and coming for the best of intentions and i want to say it's because the central bank thinks they can solve every other problem in washington. the fed is entering their business as if they're the philosopher kings of washington and the good news is we have an independent central bank and bad news is we need to keep them clearly focused on i remit and the results of the last few years suggest they haven't and we have higher inflation and $5,000,000,000,006 new deficit spending we can't afort and even in a time of full employment, most american haves this figured out and the economy is on the wrong track and they're less well off and policy regime change. >> it's hard. larry: one would be hard pressed to find any concerted fed campaign from the chairman or anybody else. essentially $2 trillion of deficits as far as the eye can see and look at cbo b

equity space this morning with investors, as you rightly pointed out, trying to digest comments from jay powellaking in the fact we are now having different expectations in terms of the potential rate cut in december additionally, european investors also digesting economic data out of the european continent. when you think about the bourses thus far, we are mostly in the green at this stage. the ftse 100 is up .2% despite the gdp figures which came in below expectations we saw the uk economy growing 0.1% in the third quarter. let me take you to the secretary sector breakdown when you think about the best performing sectors, we have travel and leisure at the top. oil and gas up as well up .8% despite lower oil prices today let me briefly take you to the worst performing sectors that is where we see the interesting moves at this stage. health care is down 2% at this stage. here is very much a continuation of what you highlighted there, dom, in terms of the announcements from the president-elect. that had an impact in healthcare stateside and that is having an impact on the european healthcare nam

jay powell and the latest policy decision today coming up at 2:00 p.m. eastern.tral bank expected to cut rates by another 25 basis points as the fed looks to recalibrate policy with the softening labor market. i'm joined by the federal reserve economist for the journal. >> good morning. >> i know the fed is non political and stay away from politics. i have to ask you, does the election have any impact on the fed decision today or going forward? >> i don't think it has an impact today. i think the fed is going to cut by a quarter point as has been widely broadcast. it could have an impact going forward. we saw in 2016, the first time trump was elected, the december meeting following the election, they talked about it at length. they mentioned the election 72 times in that transcript. you can assume the fed is thinking about this and how it would affect the economic outlook. i think in the environment, they will be focused on how the policies that president-elect trump imposed might impact the inflationary outlook. a lot were marking down how many rates cuts they e

president trump spoke about the questioning of the decision of fed chair jay powell made and the fed has made. as an investor, how do you look at the risk with the president-elect and the fed and the idea he might try to institute a shadow fed chair or something like that? >> well, i'm not too worried about that risk given -- i think jay powell said he will not resign and the legality of that actually keeps the fed pretty much independent from the government. i think if there is any sign of any risk of that, i think the market would have protested and that would have a detrimental impact and it is likely this would actually happen. i very much believe in the independence of the fed. >> you see little risk there. i have to ask you about bitcoin especially when you talk about portfolio management? >> well, it is the digital gold, right? i think it is a form of diversification for investors and i think in the view of higher budget deficit, i can see the point of people getting into cryptocurrency because it is a stored value. i think the volatility itself is huge. so, it may not be up w

heading towards a week of losses following jay powell's hawkish comments.ch lower going forward. the labor market weakness was misread. as long as the fed can carefully bring rates down, our thesis of a soft landing and broadening out of economic returns will be supported. good morning to you. phil: good to see you. jonathan: last time we spoke you were super bullish. phil: before the election, we were saying it was going to be really hard to fade u.s. exceptionalism. we didn't know if it was good to be exceptional nation that exceptionalism, lower case or within clinician point -- with an exclamation point. we think it is the exclamation point. the two words i took from chairman powell yesterday, the world focused on cutting rates. mine was strength and economy. that is the fundamental story, particularly with the u.s. consumer. i have been on this program talking about the consumer a lot. the most important consumer to get right. october gave us such a big signal. it was the largest one-month gain in consumer confidence since the reopening of 2021. the bi

plumb will have a list of five fine candidates, who the market will be happier with than jay powell.other thing, not related to your question but i wanted to interject, in the past 24 hours, i've had conversations with the two leading venture capitalists in america who are not elon musk. i think of the three of us as kind of the three horse men of the growth economy, and these -- both of these two were so optimistic they said, if we get this right, if we get the deregulation, the energy, and the technology ai boom happens now, the 3% growth is way too low. they were talking numbers that ha6 in terms of real golden age going for the incredible boom and right policy mix with them. larry: kevin hassett, i'm sure you agree with me the 1890s and guilded age and not a good tv show and great economic period in american history. kevin, i wouldn't mind though, prices, prices never seem to fall for middle income people. they never seem to fall for low income people. you know, there's still a legacy of higher prices. now, mr. trump's policies work out particularly on energy, we'll see lower pri

larry: coming up, folks, sticky inflation and jay powell looking wrong again and incredible stuff to say in his december fomc meeting. we've got breitbart john carney and david mall pass. catch kudlow monday through friday at 4:00 p.m. on fabulous fox business. if you can't get us at 4:00, text your favorite #-year-old and she'll show you how to dvr the show and you'll never miss a supply side revenue generating tax cut. investment opportunities are everywhere you turn. but at t. rowe price, we're letting curiosity light the way. asking smart questions about opportunities like advances in healthcare. and how these innovations will create a healthier world tomorrow. better questions. better outcomes. meet the traveling trio. the thrill seeker. the soul searcher. and - ahoy! it's the explorer! each helping to protect their money with chase. woah, a lost card isn't keeping this thrill seeker down. lost her card, not the vibe. the soul searcher, is finding his identity, and helping to protect it. hey! oh yeah, the explorer! she's looking to dive deeper... all while chase looks out for he

jay powell sheds light on the plan for easing.r cleveland fed chief is here. >>> and breaking news in china. new stimulus news to prop up the economy, but shares are falling

trump firing jay powell. that's not what he's saying.ng the purchasing power of middle and lower income people and it's the biggest chunk of this country. the well to do have many ways around this and you know folks do not lower income working folks do not, minorities do not and it's the big, big, big issue in this recent campaign and ej, i think it's not so much getting rid of jay powell and all the same kinds of legalistic and who's responsible and accountable and by the way, i know you've known a million times and it was congress that created federal reserve and it was congress that was originally given the power and authority to set the ballot of money and we never blame congress either. >> what's really interesting, larry, reading the original text of the constitution and it's clear of what the founders and i congress is forbidden from doing what the fed does today and having a current seizure disorders that's backed by absolutely nothing and congress was authorized as you said to create a currency with precious metal backing and ho

going to affect our daily lives, and look, neil, at the end of the day, i'm pretty confident that jay powell's going to be getting a holiday card from president trump this year and going out on a limb and saying they're not going to be best of friends. with that said, where it's relevant here is not just the transition, but affects our daily lives. we could be impacted and entering uncharted territory as the conflict between the would-be president and the fed chair grows deeper, and more-- >> larry, i wonder about that. it's not as if he's going to be raising interest rates, he might slow the cutting trend in interest rates, so it's not like it's going to ignite a war path here. it might still, i don't know. what do you make of the market rates, the federal reserve has no control, the notion that inflation could pick up steam next year with all of this tax cutting, the tariff stuff and you heard the saying drill here and that's accelerating. >> point blank, the fed chairman said i'm not going anywhere and perhaps he's not the president's first choice to be in that position. you're right the ma

, interesting to have somebody at the treasury knowing that you will take over for the fed when jay powells up. caroline downey your reaction. >> the spectator described trump's cabinet nomination process as musical chairs in the sweet spot for treasury secretary for him, as the spectator said someone who loves tariffs but will call markets that the compromise siesta look for, he seems like a competent pick but in 2018 hero against protectionism in the wall street journal yet he warned trump could lead us into economic isolationism but he may have changed his tune. as for pam bondi trump all-purpose technologies that haven't asked to grind against the respective departments. that's a good thing. pam bondi is no exception as florida attorney general, where i am from she is battle tested because she fought against human trafficking, cartel smuggling, pill bills and the opioid crisis these are things that kamala harris only paid lip service commission can work with tom homan with blue states that restrict and oppose border enforcement and she's just as devoted as matt gaetz to trump but she i