john lonski, moody's economist. and john kaiser, s&p global intelligence unit.lonski, start with you. that was larry summers saying with that. he said they should have raised rates six to nine months ago when low rates were encouraging investors to take more risk and they have blown it basically. what do you think? >> they have blown it for sure. just over a week ago 5% odds of rate hike at september meeting. those odds are now down to 22%. fed funds futures market doesn't see rate hike occurring march 2017 at earliest. a rate hike ought to be least of your worries right now. melissa: robert about, let me ask you, before bad news used to be good news. it meant the fed wasn't going to raise. isn't this in part fed is going to raise and would have happened whenever they decided to do it? >> we're seeing massive repricing risk premium in the financial markets. kruk shun started with high yield a few months ago because the market was worried about the possibility of federal reserve raising rates in 2015. we shift forward where he are today, we're seeing not crisis b

john lonski, always good to see you, gordon chang, always good to see you., both. >>> firefighters are making gains against the massive northern california wildfires, primarily northern california. temperatures have been relatively mild, crews able to clear brush and create some fire lanes and expand containment lines to stop the wildfires from spreading. >>> over in los angeles, dry conditions haven't helped the firefighters. the los angeles firefighters and -- move to, this as you see here, these little plastic balls, 96 million of them, provide shade for the water, that will stop 300 million gallons of water from evaporating. each year. that helps for a state that is 95% of it in an extreme drought. that's a very impressive idea. it might create problems for propellers and things like that, anyway. >>> the new jersey turnpike reopening after a horrible accident caused the highway to literally go up in flames. two tractor trailers collided, a gigantic explosion a result. one of the truck drivers ran from his vehicle, his leg on fire. jackie wilson, we got

john lonski. >> my pleasure. to the latest on the largest of the 21 wildfires blazing across california. the rocky fire north of san francisco burned more than 69,000 acres, just under 40% contained. the firefighters tell thoughts threat of lightning, thunderstorms and high winds threatens to undo whatever progress could be made over the past two days. >>> a gopro camera capturing what it's like to be amongst a herd of elephants. watch this. the elephants notice the gopro camera. there we are. in the field. they walk over to investigate. the foreign object. express a little surprise but not disdain. elephants seem disturbed by the gopro's unnatural presence. that didn't stop the curious creatures from tossing around the device with their trunks before getting bored and walking up. it still amazes me just how sensitive elephants are and how delicate the operations are they can perform with those trunks. the huge trunks. anyway. john lonski is sitting here, he came in excite bud he's going to leave in awe of the el

fox business' liz mcdonald and moody's chief economist john lonski join me. and the saying what goes up must come down applies to human towers. you won't believe how many folks get on before the tower topples. what super poligrip does for me is it keeps the food out. before those little pieces would get in between my dentures and my gum and it was uncomfortable. just a few dabs is clinically proven to seal out more food particles. super poligrip is part of my life now. . tom: i'm tom sullivan in for lou dobbs. the main news at this hour, dramatic reversal for u.s. stocks in the final hour of trading. much more on this in a moment. >>> also court documents revealing that disgraced irs official lois lerner used a second personal e-mail account to conduct agency business. the account was set up under the name koby miles which sources tell fox news is the name of lerner's dog. >>> hillary clinton plans on leaving her $100,000 hampton's beach rental tomorrow early to head back to the campaign trail. clinton made a couple of quick stops in cleveland and minneapolis

we're talking with some country best economists and analysts, moody's chief economist john lonski. and sam stoval joining us, and artur -- art. fox business' nicole, good to have you with us. >> good to see you. nice to be here in your studio, something happened in your market today. lou: you covered it today, you looked better i think by far than all of the people you were working with. who are seemed to be bedraggled you are full of energy and bright. >> thank you, but the truth is that it is a play-by-play sort of market, that is what traders are telling me, i had a chat in the green room, someone said, if anyone says anything about a bear market. answer, i had not thought about that? no one is saying anything about a bear market, they said we saw 300-point sell-off thursday, 500 on friday. and thousand points today. first of all everyone getting freaked out to see 1,000 points. but, today, as people were leaving i asked so what next they said, look we have to take this one day at a time. being look at what china is doing, people are putting money to work. we saw many of names c

john lonski, moody's. lance roberts is a market strategist at fca wealth management. welcome all. ve you here. john, i will start with you. let's go to comments by stanley fischer, vice chairman of the fed. he said rate hike could be in the cards, should be in the cards, what do you make of his comments? >> the fed very much wants to hike rates in september if the financial market gives it room to do so. if we have more financial market volatility if we have weaker industrial commodity prices, chances are the fed will wait. gerri: leif, to you, inflation not at 2% here, my friend. >> right. gerri: i thought that was one of the precursors that had to be in place. what is going on here? >> i agree with you. i don't think inflation really gives them the opportunity to raise rates right away. i think inflation and i don't think the jobs numbers will be significant either. unless we have blowout numbers that the fed will step in and raise rates in september anyway. of course the fed always like to put out conflicting communication. you have dudley saying there is really less compelling