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interest rates still continue to rise in the same path but now president trump has a scapegoat in jerome powellwant -- he has a scapegoat. >> the economy is doing well and we're on a great goegt path then rates should be higher than they are. powell should be doing the right thing in fact might be behind the curve. >> that's back to the economy is doing well and inflation in the right way. that's fine. but man made inflation is not the right inflation to raise rates on. >> they have to do that calculus as well. the comment should be shall did shall today shows us we are a victim of success. the economy is doing so well which is oh why our federal reserve is doing the exact right thing. >> i want to read you comments from president trump trump said the fed has gone crazy, is too tight. i'm simplied reading the headlines. trump saz the fed has gone crazy, is too tight. >> he is giving ownership if the market sells off. >> int poing the tirng. >> jerome powell and his market everything that sarah said is going to be escalates as a tailened, jerome powell is the headwind with you good cop bad cop.

enough that you just did that it wouldn't be for that reason, but that's what i mean by putting jerome powellu know, in a can't-win situation. you know? >> yeah. you know, what powell is going to say and what he has said is he's just going to make the best call that he can, like an umpire at a baseball game, and he's not going to pay attention to the politics. you know, the fed is going to raise interest rates again in december in all likelihood. i don't think we are going to know until sometime early next year, probably around march, if the fed is close to stopping. this is going to be a debate we will be having for a few more months. neil: thank you, my friend. always good chatting. i want to bring up this same subject with my buddy, you know him and i know him, charlie gasparino. hypothetical. >> he can fire him. john is an expert -- neil: let me ask you this. how would the market react to that? >> probably not well. congress might not react well. listen, the founding fathers put all these things in place, all this vague language, and when the federal reserve was created, it came much late

president trump pointing the finger at jerome powell and company for the market threat.t bloomberg exclusive, what is threatening the corporate bond market and the $1 trillion powder cake ready to explode. plus, pot companies continue to be the stock markets latest stars. why investors are so canada's crazy. >> we are seeing u.s. stocks still under pressure for a sixth day, the longest losing streak -- the net cash efforts with this is toy 16. still come utilities, energy stocks leading declines on the s&p 500, which is still slightly higher than the 200 day moving average. the dow is down 6/10 of 1%. 2000 popped into positive territory a couple of times but is now losing .2%. the 10 year yielding, one point moving through 2.3%. losing groundex for the third session dropping against most of the g10 peers. >> you mentioned the average. i want to take you closer to that. it is something market watchers are paying attention to, and the , 2766 or below, that is the moving average at the moment. previous declines has been a real line. wewill watch very closely if see a major

inflation is something entirely within jerome powell's control. much money is print into the u.s. economy. so long as president trump, we succeed. get control on regulation and get control and taxes and get control of board policy. and get control of spending. if president trump can do that, that means inflation can go up. the "new york times" celebrating the jerome powell thing saying this is totally without precedent. charles: it's such a big deal, you wonder why the gop is having a hard time articulating it. a lot of of people are saying it's up for grabs. >> you have got to relate it to people back home. when we talk about gdp inflation numbers, those are general context people understand. wages are going up, jobs are going up. employers are going to have to start offering more money and better benefits. those are good things for americans and they are all at risk. americans campaigned on undoing the tax cuts and take us on the path to socialism. i think you are going to see that happen more and more. but the key is people are happy right now.

president trump stepped up his attack on jerome powell. ent told the wall street journal he may be regrets appointing powell. he was not say under what circumstances he would fire him. he said he was intentionally sending powell a message he wanted to lower interest rates. global news 20 hours a day on-air and a tictoc on twitter powered by more than 2700 analysts and analysts in more than 120 countries. i am emma chandra. this is bloomberg. alix: i love that clarity. i want you to lower interest rates. president trump pointing that finger at jerome powell. are there other dynamics at play behind that market selloff? a lot of it is maybe technical, margin pressure, repricing profits, value versus growth, china growth, etc. joining us now is jerome schneider. we are focused on the fed part. is president trump actually write? -- right? jerome: we believe it will be about 3.1%. a little below consensus but the message stays on tack. slack is diminishing. inflationary pressures are constantly slowly building, meeting wage pressures are building

manus: extraordinary times, jerome powell speaking at the nab annual meeting in boston.iley, the chief investment strategist at bluebay asset management. one of our two strategists was here this morning, and she said , the fact that he referred to the fact that unemployment could fall even further. would you agree or disagree? david: i think it is likely that in the us unemployment will fall further, but i think to some we are at full employment. the participation rate has not then moving much higher. it was interesting in his speech tot he also made reference things like labor shortages, capacity constraints -- the u.s. economy is operating at full capacity pretty much. there was a comment made that the u.s. are sitting on an as path of monetary policy. i think that the situation we currently have is isometric in the sense that inflation risks are starting to build within the u.s.. i think the lords of economic stability have been completely broken. the fed is gradually tightening and they will continue to gradually tighten. a bitk the market is complacent about the out

the president says he will not though fire fed chair jerome powell.with analysis on this, editor and publisher of "the gartman letter," the man himself, dennis gartman and head of pacer etfs, sawn o'hara. dennis, let me begin with you, overstringent, ridiculous, these are some of the comments the president had for the fed. what is your reaction to that? >> that was absolutely untoward, ill-advised and very bad decision on the president's part, i hope i'm clear. you don't take the fed chairman, especially this fed chairman, one of the most moderate and decentest people, he is not crazy. this is exactly what they're doing the right thing. rates will go higher. the president made a very, very, ill-advised decision last night taking the fed on. i think it was quite wrong. ashley: sean, you know, mr. powell has said rates are far from neutral he said in one of the most recent interviews which kind of spooked the markets, what is neutral? what is your response to how the president has characterized the actions of the fed? >> well he has been very unconventi

and that's when president trump and fed chair jerome powell are going to be not at odds.s the wrong way to put it. but it would be a bit of tension with regard to whether or not fed policy will shift in 2019 based upon the economic data they are seeing, stephanie. >> then ask your question, is it jerome powell's focus to focus on the u.s. economy or the global economy. because if we are in somewhat of a global slowdown with the united states moving much quicker than the rest of the world, which economy is supposed to be the focus for jerome powell? dom chu, thank you so much. >>> now the latest in the russia investigation, "washington post" reporting that on friday robert mueller's team questioned trump's former chief strategist steve bannon, marking bannon's third sitdown with the special counsel's team. he was reportedly asked about comments that long-time trump associate roger stone is said to have made privately about wikileaks in 2016. prior to their release of hacked democratic e-mails. joining me with more is nbc news intelligence and national security reporter ken

extraordinary times, that is how jerome powell describes the u.s. economy. is is bloomberg. ♪ >> this historically rare herring of steady low inflation unemployment is a testament to the fact we remain in extraordinary times. ♪ powellfed chair jerome in boston yesterday. he addressed a relationship between rising wages and inflation. >> the rise in wages is broadly consistent with observed rates of price inflation and labor activity and does not point to an overheating of the market. higher wage growth alone need not be inflationary. hsbc privates is bank. is not toowell worried right now about inflation, despite the growth and low unemployment. if you look at the secular story in terms of inflation since 1982, it has been a slow down for -- downward. the phillips curve is not dead. technology continues to put downward pressure on wages. you have a new technological revolution that is about to begin that will be very deflationary. this concept just has to be extended. david: this chart is a little complicated. i will explain. the blue line is unemployment. it

economy, jerome powell says these are extraordinary times. >> the u.s. economy is doing extremely well inflation is up to 2%. i spent a long time indicating that i think inflation needs to get up to 2%, and here we are. i think things are going well this is something that can be continued for a number of years. >>> tesco shares sink after the grocer misses half year profit expectations thanks to weaker sales in asia and mainland europe. >>> and stock in reverse aston martin slips in its long-awaited debut a share price of 19 pounds values the british carmaker at more than 4 billion pounds >>> welcome to the show. to bring you some eurozone pmi numbers, the final numbers for composite future output, 62.1 against the flash of 61.9. services pmi 54.7. that's against the flash of 54.7 the final composite pmi, the one we should be watching, 54.1, slightly lower than the flash 54.2 that's against the august number of 54.5. you can see the euro trading strongly against the dollar. that looks to be much more to do with the italian news. so let's take a quick che

treasury yields surged to their highest level in seven years and the dollar strengthened after jerome powelled more rate hikes are coming he told an audience in washington, d.c. that the u.s. economy will expand for quite some time thanks to what he called the remarkably positive set of circumstances he also acknowledged that the fed is ready to hike above the neutral rate. >>> chicago fed president charles evans echoed powell's comments in an interview yesterday with cnbc. >> the itseu.s. economy is doin extremely well labor market is doing terrific payroll employment has been over 200,000 per month for many months which is really, really a good showing inflation is up to 2%. i spent quite a long time indicating that i think inflation needs to get up to 2%, here we are. so i think things are going very well this is something that can be continued for a number of years. i think by setting the policy rate just a little bit above neutral that will continue to keep things going for quite some time >>> that was charles evans clevelandal from president loretta mester said the u.s. jumps in bond y

crazy. >>> imf managing director christine lagarde and bank of england governor mark carney say jerome powell knows exactly what he's doing >> i wouldn't associate jay powell with craziness, no. no he comes across and members of his board as extremely serious >> he's an individual who really understands the plumbing of the u.s. and global financial systems. that's an incredible advantage for the system at a time that the system is changing >> asian equities fall to 19-month lows with chinese blue chips closing out the worst session since february 2016 as volatility spikes on both sides of the atlantic. >>> and dialog shares are super charged after apple takes a bite out of the chipmaker in a 6$600 million deal >>> good morning there is a lot of volatility going on in the markets. that started with the u.s. overnight. just so you know, dow, s&p, nasdaq had the worst day since february, some significant amount of damage going on there with a lot of people expressing concern about the rising interest rate yields this is a theme we've been focused on we've seen the extent of the rout and the exte

he's called the fed and jerome powell his appointee out of control. said i don't think anyone called jerome powell out of control -- >> in his life! >> it's a schedule similar to janet yellen to increase interest rates. we can debate the right or wrong thing to do and not particularly unexpected. >> no. i mean, listen. what the fed is doing right now is reasonable. you are right. there's a debate whether they should be going quite this quickly and well within the general realm of what you might expect but what i think's really strange here is that the president's really worried that the federal reserve is raising interest rates, well then, perhaps he should not have supported a big bunch of stimulus when the economy probably didn't need it. that's the issue. that's a reason raising the rates is because of that stimulus. >> correct. it's easy to blame the fed and -- >> and taken into account. >> the government imposed a set of tax cuts doing some of this. what's wrong? >> when ali goes full uh-huh you know you're on the same page he is. but here's the

i guess the risk is are they too good are prices going go up enough that jerome powell and the fed willave to change those crazy dot plots and get more aggressive on rates? >> it's possible, but the bigger risk is for asset allocators you can't have all your money in stocks you have to have an asset class that has equity risk in the past that's been bonds. but it's hard to make an argument for bonds over the next couple of years what will investors do they have to turn to other asset classes. it could be long short, tactical, but they have to did something. >> let's talk about that again, here's why bonds are important, folks not only are they a signal for many things, but they compete with stocks. there's 74 million baby boomers approximately. they made a lot of money in the stock market they look at the s&p with the dividend yield, whatever it is, they say it was better to be in stocks than bonds. now they're getting older and looking at a yield on the ten-year of 3.21%. many of those folks may be saying guaranteed 3 in the bond market at my age rather than risk it in the stock market

a lot of the sell-off had to do with jerome powell we are dropping.hat we are going for, here is your road map. we can over shoot. now, let's put it all together europe is clearly slower i know there were some good news out of germany and so it comes back to me >> it recently slipped a little bit. are we under estimating brexit in this country? >> there is so many moving parts. in the short term we are more likely to have a no deal today than six months ago. i think the deal is likely outcome. just that you expect the side coming together. that's uncertain the question is does that really hurt the u.s. and to finish the point. >> you can't clearly you have tremendous background in europe. i am playing to my advantage i lack the knowledge that you have i like to be able to put the context to why our market is down >> it is down because of europe and china today. china's playing catch up just on the point of contagent of italy, the exposure of the u.s. banks to italy's debt they're not ground breaking numbers. >> no. citi is the one of the biggest expos

a message for jerome powell. >> the policy is real for many countries. anna: donald trump targets high oil prices. brent crude drops below $80 a barrel. in europe, officials hold intense talks. can they strike a provisional deal by monday? manus: welcome to the show. bonds are rising in terms of yields. it is time to buy tenure government bonds as we see them rise. the spike in volatility they say shows nervousness amongst investors. they go slightly more overweight on duration. keep an eye on the dollar index. donald trump does not like what the fed is doing. i don't like it. i think we don't have to go so fast. he says he likes low interest rates. keep an eye on the yuan. we are kissing distance of seven. the bets are mounting. $12.5 billion we will break seven. this is the chorus line which is selling yuan. jpmorgan along with bank of america, merrill lynch. the voices of dissent are rising. anna: no voices of dissent here. let's talk about the equity markets in the asian session. just to point out in the kospi, ketchup going on in south korea. the pi

the american economy it's not the first time the president has attacked the fed and its chairman jerome powell for sticking to its own monetary policy. and here to shed more light on this is young's quarter our financial correspondent new york yes the president has of course targeted fed chairman powell in the past about rate hikes and he was being criticized for it so why does he keep doing it. yes actually the president increased the pressure here on wednesday when he is saying that he has the feeling that your own policy of the fed chair seems to be happy each time that he increases interest rates well donald trump often in the past fame to himself for being responsible not just for the good economy but also that stock markets are going from one record to another and now that stock markets are under heavy fire here on wednesday for instance blue chips lost by more than six hundred points of an as they composite lost by more than four percent so donald trump claims that the federal reserve was those interest rate increases is the guilty party here for the heavy selling pressure on wall stree

anna: that was jerome powell at the nab annual meeting in boston.as it will stick to its rate path, but what about other central banks? joining us, simon kennedy. nandini ramakrishnan is still with us. would talk her we central banks next, she gave me a thumbs up. simon, good morning to you. you have done this great piece. you and the team, i should say. the bloomberg guide to what the world central banks have done and what they will do next. any big picture messages coming from this? clearly, the fed is setting the pace. terminalis is on the on the web. it is a quarterly guide to what central banks are doing by the reporters who cover them and economists to analyze them. two things. the monetary policy is haulaning and as jerome would say, it is being led by the fed, but we have seen 10 of the 22 central banks we monitor have tightened monetary policy since july and that has been led by the fed. at the same time, global policy remains historically loose and the reason is even with fed tightening, rates still aren't that height. the are still groupi

it's as though jerome powell wanted to send stocks lower. the nasdaq still taking the brunt of it sank 1.6%. look, it's going to be hard for stocks to stabilize until he walks back those comments, or at least clarifies that he is going to make his decisions based on the data rather than giving us a series of lockstep autopilot rate hikes that the economy, as strong as it is with these employment report mace not be able to handle don't get me wrong we were due for a sell-off we were straight up. but this is still a man-made decline. while the fed is worry that business is running too hot, today we did get a strong employment report that nevertheless wasn't all that inflationary that's what i care about they don't need to tighten aggressively just because workers are making a dime more than di they did last year yeah, that's about it. it's not going to turn us into the buy more republic if we let it go unchecked. we want the federal reserve to be what janet yellen taught us, to make decisions based on what's happening in the economy. it may so

jerome powell's beaks in just a noun -- jerome powell speaks in just under an hour.ou his remarks life. -- live. david: welcome to balance of power, where the world of politics meets the world of business. let's get started with an edwards in birmingham. there was drama today. anna: there was some drama coming into the conference today. word boris johnson decide -- would boris johnson decide to launch a in tilley the conservative party? launch a bid to lead the conservative party? no.

jerome powell actually questioned it yesterday. ally that thosec two things feed into each other and the fed looks to these wage numbers as early indications of inflation taking off. joe: joe: i know it will not show up in the friday report joe: but are economists saying anything about the ruble effect from the amazon wage announcement on broader u.s. measures of labor compensation? jeanna: we were just talking about this. caseuld absolutely be the that those wage increases would ripple through the economy. it is like the walmart effect. generally, when you see walmart do something with their in a moment, you can see that in aggregate data because it is a must-have -- massive employer. competitorsl of its to follow suit. you would not expect it immediately, but you would expected within a couple of months after amazon does those wage increases. you would expect competitors to step up alongside them. scarlet: jeanna smialek, thank you so much for joining us. caroline: breaking news. tilray is sinking after announcing a $400 million

i spoke to christine lagarde about these comments this is what she had to say about jerome powell. >> i wouldn't associate jay powell with craziness, no. no he comes across and members of his board as extremely serious solid. certainly keen to base decisions on actual information and desire to communicate that properly that's what i have observed. >> so christine lagarde is concerned these comments have been made and some views here that maybe these attacks on the federal reserve, part of the reason are a lack of confidence in share markets dominic, back to you >> if you don't mind me following up, this is a large gathering of some of the most policymakers in global finance yes, president trump's comments are important. what else have you been seeing throughout your time wandering around there, your reporting what is the sense about the biggest problems or where are the biggest hurdles that the global economy faces what are the hot spots we should be watching for? >> the central bankers are swarming around the same issues that investors are having to work with. high oil prices. where

the president not letting up with fed chairman jerome powell.pparently despite all this conservative fed, the markets not that concerned. >> the tax cuts has more than mitigated. they would have a rising rate environment. by the way, policies against china right now, one is down because the dollar strengthening so we've negated these tariffs completely right now. it does eventually slow down the economy. >> it is the unwinding the president is worried about. a lot of people worried about in terms of rates going up. >> i like the fact he says he's not trying to influence the message trying to influence him. there is a real issue here and the markets of today. the markets are worried about unwinding the balance sheet with much higher interest rates in the future. why do we have to unwind the balance sheet? i get the theoretical reason that if you just create money by fiat out of thin air it's not worth that much. but you really have to unwind it? >> we talked about this yesterday. the whole reason the fed is in existence is to hopefully tamp down

streetjournal, mr trump said that rates were being raised too quickly under the leadership of chairman jerome powelleases since 2015, and the brisk pace of economic growth means more are expected next year to stop the us economy from overheating. soa so a very quick look at the markets before we go and you can't see them there at the asian markets fell again on wednesday, extending the previous day's sell—off, fuelled by all those geopolitical concerns that we have been talking about. energy firms taking a bit of another battering. that is all for the business briefing. see you soon. nearly 30,000 calls were made by gamblers to the helpline in the last year according to gamcare, the charity that runs it. the government says it's taking decisive action to ensure the most vulnerable people in society are protected from gambling—related harm. the bbc‘s ali fortescue has more. sporting, funny and a son, alan took his own life because of a gambling addiction when he was 40 years old. was just horrified because addiction when he was 40 years old. wasjust horrified because i could not see what the attracti

past thee fed may go neutral rate, according to jerome powell. let's talk to vince reinhart.es nowell said in the site for the growth of the economy. bad news is the chairman of the federal reserve is optimistic. it's true. they will be raising rates for the good reason that they are supporting ongoing economic expansion. ? if the goal is to firm up financial conditions, treasury yields have to go up. you have to take a little off the top of the equity market. david: how far up does it go? where is the top? >> the estimated term premium on ten-year treasuries are according to the federal is -50 basis points, so investors are paying the u.s. treasury to take duration risk. you seenot something sustained on a historical basis. what is that neutral rate? premium?he term the term premium will go from negative certainly toward zero, and the neutral rate was probably in the neighborhood of 3.25%. alix: overseas, you will not argue strong economic circumstances are for germany. where is the biggest full mobility? turn theght want to question around. maybe the reason the ten-year tre

if jerome powell starts to mention it, maybe we should sit up and have a look as well >> it just seems to me that -- i was listening to paul volcker talking about how the fed operates and how central banks are operating at the moment. he's just wringing his hands, saying this 2% target is nonsense we need to rethink the methodology and the framework where we predict where interest rates should be going here maybe we should stop talking less about the pure rate and think more about the spread because the market determines the spread and actually tells you where the risks are rather than the central bank trying to make a prediction based on a 2% inflation target that seems irrelevant today >> i think this is what's been happening over the last couple of years as you say, the fed set the base ret. t rate and the market sets the curve. that's where you have had a dislocation between what the fed thinks and the dots. that's why the ten-year is a lot lower than it probably should be it's not pricing in forward risk it's not pricing in as much inflation as is ramping up at the short end. >> i

jerome powell said interest rates may be gradually lifted to neutral levels. our big discussion point. with yields rising across the u.s. curve? manus: yes, and we have re-rated moment,s a pivotable especially on 30 year bonds. market, we have bullishions -- he is about the growth trajectory for the airplane business. hechina's demand rises, says free-trade remains key to the success of the industry. bloomberg spoke to emily chang, and about the company's position on trade tensions. >> aerospace is a thriving business. the strongest industrial business in the world. 43,000 neweeds airplanes over the next 20 years. of the world's population have taken a single flight. the amount of growth ahead of this is extraordinary. it depends on free global trade a movement of people to be successful. we are very engaged in the trade dialogue. the good thing about aerospace, you take u.s. and china, both economies thrive on a healthy aerospace industry. it is a great generator of manufacturing jobs in the u.s. as china grows, they need 7000 new airplanes over the next 20 y

is the chairman jerome powell perhaps out of a job? president trump telling me what actually happened behind closed doors during his meeting with russia's vladimir putin in helsinki. here's a hint. it's something the mainstream media definitely won't tell you. we'll get to 2020, stormy daniels and a whole lot more. president trump feeling confident the republicans will come up big during the mid terms. here's my exclusive interview with the president of the united states. three weeks exactly today from the mid terms. what's your prediction? president trump: it's exciting. i think we'll do really well. and i don't want to make predictions. i know my poll numbers are terrific, though if you watch certain cable stations they try to make them look less than they are. but we have thousands and thousands more people than we can hold at the rallies. there is enthusiasm like we had the last election, 2016 which was quite a spectacular day and evening. i think we have a lot of enthusiasm. i keep hearing about the enthusiasm, the blue wave. but

notice of the markets and used the volatility to step up his attacks on the fed and fed chair jerome powelln particular. trump sat down with the "wall street journal." >> the president telling the "wall street journal" that he thinks the fed is the biggest danger to the economy because it's raising rates too fast. in a sit down in the oval office he took new aim at jay powell saying every time we do something great he raises interest rates he added it's almost like he looks happy doing it when asked under what circumstances he would remove jay powell as chair. he said i don't know the fed raised rates six times since the president took office. it will likely hike rates again in december. this is not the first time the president voiced criticism of the fed. earlier this month the president said the central bank was going loco and out of control. the fed declining to comment on the president's remarks. back to you. >>> your three big single tock stories involve banking, semiconductors and a robot volume >>> deutsche bank saying third quarter profits fell 65% ouch that was on a slump in tradin

the irony is if anything over the last two weeks i think jerome powell sounded more hawkish. a number of fed governors last week spoke, and the sense is that december is in the cards. i actuallybelieve the fed who is data dependent may start to see some impact of trade which has not frankly shown up in u.s. numbers. president trump will continue to do what he does. he will lean on those folks that he believes are acting in interests not with his policy now. a weaker dollar is something that i don't think this administration really should be talking about, but it's what they do. >> which goes to number two, steven mnuchin making some comments in the financial times warning china about devaluing its currency do you think this trade fight, this trade war will turn into a currency war >> i don't if you look at the key exchange rate levels on the yuan around 7, this is something the markets should be watching this is a long-term kind of level that's not gotten up and above. i think the chinese spent time trying to show the rest of the world that they're building capital markets th

i got to tell you, i think jerome powell is doing a pretty decent job.hat we have to worry about long-term is recently, we have been winning the currency wars with the strong dollar but i don't think that's going to be the case on long-term. as the dollar continues its long-term slide, you are going to see people be affected by that. i would be more inclined to put my portfolio to an inflation protected portfolio, even though there isn't any inflation right now. it's coming back, mark my words. neil: guys thank you both very much. speaking of jerome powell, he created waves earlier in the week before all of this kerfuffle in the credit markets when he said the federal reserve has a long way to go before rates would be neutral. in other words, signaling that i'm going to have to hike rates a lot more than i earlier thought. that rattled them then but maybe in retrospect, rattling more now. some things are good to know. like, where to find the cheapest gas in town. something else that's good to know? if you have medicare and medicaid, you may be able to ge

is it jerome powell the mawen just saw find out, howard marks, next 3 what do advisors look for in an etf? i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. . >>> here's your cnbc news update for this hour. two pieces of mail that arrived at a pentagon distribution center have tested positive for ricin. the package was addressed to an individual, but officials will not specify whom >>> jeff flake says he has an open mind on the fbi investigation into brett kavanaugh. he spoke at a panel hosted by the atlantic, and the national constitution center in washington >> my hope is that as they interview these individuals, they'll immediately follow up on othe

the inflation outlook seems good. >> jerome powell in boston last , the u.s. be true. is that the case? >> fundamentals are strong. strong labor markets, the payrollment rate, inclement growth month after month average around 200,000. that is a strikingly large number. were only replacing incoming workers into the workforce, we would expect month.to 100,000 a it continues to be strong and we are adding 200,000. something good is happening with the labor market. finding work,e increasing their attachment to the workforce. that pay strong dividends going forward. >> picking up on the goldilocks theme, asset prices. the last two recessions were caused by asset price bubbles. are there asset prices out there that you look at and think things are getting a little top py, the dow hit a record again yesterday. >> we have seen quite a lot of change in public policies. there has been quite a lot of deregulation, which is beneficial for businesses, so they have been optimistic. naturallyis supports stronger asset valuations, and we have seen that. you point out the last

again, directly attacking this man, jerome powell, who he picked to lead the fed.that stuff is wonky, but the independence of the institution is so important for our country and our economy. yet the president is blaming the fed. >> you're absolutely right. i think this could backfire. powell, like most respected economists both on the left and the right, firmly believes in the independence of the fed. if he moves to reverse course on steadily raising rates, he will be killed by his peers for succumbing to the pressure that trump is trying to exert upon him. look, at the end of the day, the fed's job is to smooth out the bumps of the business cycle. they don't want to see major booms. they don't want to see major busts. if the fed starts making decisions that are politically motivated, it risks exacerbating or amplifying those boom and bust cycles. it's the complete opposite job of the fed. >> and listen, the whole world's economy and financial markets, they follow and often are pegged to decisions from the fed. that becomes politicized, enormous global risk. christ

you look at the front end, the front end has been rising now for a while driven by fed policy jerome powellas said i'm committed to continuing to normalize rates. yet the long end stayed steadily down for the long end to move up it means that there is growth or inflation coming for our thinking i think it's inflation and not even productive inflation that doesn't sustain the long end high for that long >> gina, why is it -- so it's inflation. what is driving it we talk about the volatile parts, energy, food, commodity side of things is that going to filter through down into that core inflation number what will be driving that inflation trade? >> so there's a couple of things one, a lot of people have observed that if you look at wage inflation, wage inflation has been really low. if you look at the fall in unemployment and the sort of commensurate rise in wage growth, wage growth simply has not returned to kind of pre-crisis levels. unemployment is well below pre-crisis levels. so there is still some room for wage growth to result in inflation. that would be very positive inflation. the neg

. >> if that's the case people misunderstand powell one of the most notable things about jerome powell is his absolute disdain for forecasts no fed chairman in my lifetime in covering this, and this has been a long time now -- i hate to admit it, and it's almost three decades -- has had more disdain for the outlook of forecasts than jerome powell the fact you're worried about what he thinks will happen a year from now is misplaced i don't mean you, scott. >> i hear you. let me throw out the important question for investors at this moment with rates going up, do you need, as mike wilson suggests, these are his words, portfolios need to shift because these rising yields, the growth trade selling off, value is back in favor, and he suggests that maybe for the first time in ten years it has staying power >> the first time in ten years that it has -- >> the first time in ten years that value is really, really back and that these high growth stocks that have led the majority of this bull market are now going to be out of favor and out of favor for longer than investors realize. >> the bull m

why we're getting hit, we'll keep getting hit the economy is nowhere near as strong as fed chief jerome powell seems to believe. it can't withstand the mindless hammering that he's going to give us. >> cramer went on to say that chairman powell will probably continue to hike now because he's been backed into a corner by president trump let's break it all down with michael farr, the president and ceo of farr miller in washington and senior economics reporter steve liesman. i want to start off with you, steve. the notion that the president doubles down on his comments about the fed and fed policy and jerome powell will have to raise the bar when it comes to reasons not to act >> i think it is possible that there are unexpected outcomes from the president doing this. there is, you know, a real conservative would sort of say why are things done the way they are in the past. and sort of have a reason to stick to that. well, there is a reason why other presidents didn't comment on the fed and that's because you have potential for unpredictable outcomes like the idea of leaning against the political

later today, jerome powell speaking. michael mckee is there.berg. ♪ tom: good morning. york witheene in new francine and london. edmund shing and peter chatwell. you guys are market guys. you have to deal with international trade. whether it is the usmca or the new unilateral or bilateral discussions with china. you atlet me start with mizuho and the idea of markets telling the politicians what to do. ,s that what we are seeing now the markets are telling the politicians, these are the global dynamics, and this is where we are going to price things? peter: that is normally will how things work. -- that is normally how things work. we price things according to the economic outcomes we see as probable. i don't see any change if there is government intervention with policy. it is only really in the economies, the less open economies where you can expect to see some sort of government intervention. it's all of this pushed aside because we are in more of g voting rate regime -- floatin rate regime? it is. i am seeing a very productive environment an

i think jerome powell is going to walk back those statements. think everything is on the table kind of like what larry culp say in ge. if everything is on the table and he says look, i am paying pensions to all the data then we have a rally >> can we normalize interest rates already? can we get back to the world we oneself knew 20 years ago? >> guys, we are at the cusp of where we should be i am being bottom's up. it is a sudden change in china and higher rate. t it really shows the housing market happens over night. >> i saw this in a second. >> foreign search, this is one of the most powerful from atlanta. >> s&p is at the bottom. >> the big board is valley and chaparral. >> speaking of the nasdaq, the folks got a good -- when it is down 1% plus and starts on the sixth day. the rest of the month is positive putting out key bags today service growth stocks, the october pull back have been monstrous since this month began. these stocks are down double digit. i agree with the idea that there could be a balance i got to tell you that if you think

iain: i think is the reality is that everyone has an opinion but what jerome powell will be looking ate will be saying, we would dual mandate, economy growth and growth looks good. the cpi printed this week was a little below expectations, but we are hovering around the 2% to mark. i think they have got every right to continue going. they are going at such a slow, gradual pace compared to other cycles. they are taking their time. i agree with other comments. if they see the data roll, they will be happy to pause. jon: there was one high profile capitulation on wall street. i'm going to catch up with him on tv on monday. but for the most part, a lot of people have stuck with it. we're going to get a flattener, do you stay with that view? iain: if you take a long-term view, yes. probably get down to zero and then slightly inverts. the reality in the near-term as you could well see the curve have a little bit of a steepening impacting the rate move. the pension reforms moves, pension demand. there is a lot of issuance the u.s. has to do and it could lead to a little bit of a curve capitul

this as jerome powell hails and almost too good to be true u.s. economy. and he says this could stay the four percent through 2020. right in time for the next presidential election. thank you for joining us. thank you forwatching , money, politics, we have the debate behind tomorrow's headlines. i am elizabeth macdonald and "the evening edit" starts right now. elizabeth: to check your 401(k) and pension plans say, the dow closing in on the record high of 64 points. ended the day 26,828. less than 200 points away from 27,000. we are close to earning seasons. when companies tell us how much money they made and what they're expected to make. valuable stocks have gone up $9.3 trillion. the fed chair, jerome powell saying america is in a good place. -- a testament to the fact that we remain in extra ordinary times. even liberal comedian praising the president for his new trade bill say the president is delivering on winning. watch. >> one of chomsky promises was that america would win so much, we would all get very tired of winning. this weekend donald trump fo