louis fed president jim bullard is our guest host. e previous hawkish chairman said it's unwise to raise rates. bullard will explain next. professor richard thaler. you are called the father of behavioral economics. i've been called a lot of things. i have read all of your books. did you learn anything? i learned that humans are complicated. we're emotional. absent-minded. and we make some really bad decisions. my trade-off analytics can help companies make better decisions, but i am still learning what makes people tick. what makes you tick watson? natural language processing, reasoning algorithms, statistical parsing. now you are just showing off. do something! get on the floor! reasoning algorithms, statistical parsing. oh i'm not a security guard, i'm a security monitor. i only notify people if there is a robbery. there's a robbery. why monitor a problem if you don't fix it? that's why lifelock does more than free credit monitoring to protect you from identity theft. we not only alert you to identity threats, if you have a problem,

meanwhile on cnbc this morning, jim bullard looked to put a recent spin in the sell-off in the stock market and he called it, quote, a silver lining because it helped avoid a bubble in prices. >> you mentioned a retailer and we do have retail news, j.c. penney announcing it would sell things for literally a penny and to get the marketing campaign is the latest push by the shoppers back into its stores and the promotion will run on its private such as arizona. >>> also apple in the news today over its legal battle with the fbi and the tech giant is refusing to comply with the federal court order to unlock an iphone used by one of the san bernardino shooters over privacy concerns. earlier today fbi chief james comey told congress the issue is far from cut and dry, calling it the hardest legal question he has faced. comey also added he did not think the apple issue set a legal precedent for future cases and that's what's happening here at cnbc. back to you guys. >> sharon, we thank you, still all across america families are coming back to time warner cable for a whole new experience. pw

jim bullard said last night we should get rid of tehm. to bring this elegant chart to you, tom. if you look at the blueline, that is the tightening cycle from 2004 on to 2006. and look at how the dot plot's path currently matches that. no wonder markets are confused. they think we are going to do the same thing we did then, even if we say we will slow, they are not believing us. tom: mr. porter, you have a lot to can to be in class, and i hope you will. we please contribute now on the nation's monetary policy? are we ignoring our goods producing sector by only looking at the mumbo-jumbo? michael: i think that our national strategy for restoring our economy has been monetary stimulus. isn't that sad? tom: i agree. michael: yes, i feel for the fed having to take this burden. to try to get this right. and, of course, it is a very challenging, delicate question ise, buten to rasie fundamentally we are not moving ahead on our tax system, not moving ahead on and for structure, not improving our immigration circumstances. we are not addressing a

seal the deal on no march rate hike, in that i don't see how the fed move without a centrist like jim bullard realize it at the time. when jim sits here and says we can't hike rates i think it doesn't happen with bullard. he's right in the middle. he's been an interesting litmus test for the federal reserve. and he was the one who turned hawkish and kind of got the fed on that freight train to hiking rates. they all want to hike rates. it's worthying about if you're a central banker. you don't want to be at sister. you're at zero because you feel you have to be. >> it's out of control train. careening after nine years. careening to a quarter point increase. oh, my god up a quarter after nine years. >> i was wondering when you were going to pounce on my metaphor. i know the absence of sorkin means you don't have anybody to beat up on today. >> got mario. >> thank you. >> thank you, steve. >> i just want to make a quick note, today monetary policy, important paper presented today. it will say the fed should follow the data and not give us time guidance which is important. >> okay. looking forwa

i'm carl quintanilla with david faber and jim cramer at the new york stock exchange. a lot of retail earnings to look at, bullard on "squawk." europe with nice gains, shanghai, the worst session in about a month as the repo rates cause concern. bonds, durables, the biggest claim in ten months. claims were good. oil is a laggard again. tim cook defends apple in its fight with the fbi calling the government's order, quote, bad for america and the software equivalent of cancer. >>> sales force is out with a beat. the stock is up sharply. hear how ceo marc benioff described the quarter last night. >>> best buy, kohl's and restoration hardware down 20% after yesterday's preliminary guidance. futures volatile, one day after stocks rebounded from a sell-off earlier in wednesday's session. data out this morning shows the durables up in january at the strongest pace in ten months. claims rose last week but that four-week moving average fell to the lowest level since mid-december. stocks have been shrugging off the sell-off in shanghai. >> it's almost as if what happened, people recognize that stock market has far less to