also moody's economist john lonski. john, i don't blame him. who wants the cost of money to go up?be diplomatic and not say they are lunatics, whatever they were saying. jerome powell is not crazy. trish: a lot of people are saying that. this president has a different style entirely. he says what he thinks. i'm sure plenty of presidents thought the fed was doing a lousy job and acting crazy and maybe never said quite so explicitly. >> that's right. the fed has to keep an eye on financial markets. the overall market has sold off sharply thus far in the month of october. it is clearly higher. interest rate sensitive sectors, housing sector stock prices index is down 25% for the year-to-date. that is versus the overall market up by 2%. and marchover, motor vehicle industry stock prices, they're median decline for the year-to-date is roughly 23%. that's not good. i think that is telling the fed that perhaps there is reason to proceed with greater caution, not only when they hike rates but when they talk about rate hikes. trish: ie, john lonski agrees with president trump, you don't wan

john lonski joins us mark luschini and to start us off on "cavuto: coast to coast." you go first how someone. >> the gold locks report that came out friday to me see dell rate something a very. i'm recommending my clients take opportunities if you're able to ride out volatility, buy and hold strategy you want to engage right now. connell: debate whether you're buying dips or selling rallies. move to john lonski, since katherine brought up factors that play into what you do for a living over there at moody's. how do you read what we her last week on the globe economy and more importantly for markets how the federal reserve will interpret it? there was some saying federal reserve had a reason to ease up on interest rate hikes, what do you think? >> catherine's view on the economy is exactly right. that is begs the question why the fed is fighting inflation so strenuously an fervently if there is no sign after pickup by corzine inflation? as an investor you have to recognize reality. with that means, is the fed is perhaps going to stay on the course of hiking interest r

charles: i told you john lonski was good luck. look at that, folks.up, the dow jones industrial average. mike murphy liked a smattering of tech names, all of them up except amazon for right now, but they're all looking really good here. i've got to tell you, we're going to go from panicked selling to panicked buying the more those stocks go up. elizabeth: we're at august levels right now. charles: great point. president trump, well, let's just say he's not happy with the fed raising rates. roll tape. >> the problem that i have is with the fed. the fed is going wild. i mean, i don't know what their problem is, but they're raising interest rates, and it's ridiculous. the fed is going loco, and there's no reason for them to do it. and i'm not happy about it. charles: joining us now -- [laughter] sean spicer, former white house press secretary, currently the spokesman for pro-trump super pac america first action. sean, the president, obviously, never shy about anything, even criticizing the fed. yeah, i was just waiting for him to say that old powell's a

peek, fox news contributor james freeman also with the "wall street journal," editorial editor and john lonski moody's economist. liz, big news, when we know china kind of makes up the number, they want to save 6.8% but they didn't. of the industrial production part everyone zeroed in on. some of the economy is frontloaded, to get in ahead of the tariffs. now reality seems to be the industrial part is slowing down a lot? >> i think this puts pressure on the government as michael says to come to an agreement with washington. they have seen conciliatory efforts. they lowered tariffs on 1500 products. they are talking about, meeting with xi xinping and trump november 29th i think it is which would be a very good thing. we know that president trump doesn't like to leave those kinds of meetings without scoring some sort of success. look in terms the impact on the american economy right now, i think it is minimal. but there is no question but this is all sort of moving in the right direction. i think for a better agreement on some of these issues that are out there. charles: before you jump in, jame

what i'm calling a goldilocks economy, liz peek and moody's chief economist john lonski. liz, it is goldilocks and what i find intriguing two areas that were problematic in here will actually end up being better in future quarters. >> business investment falling short. charles: business investment will come on. >> major downdraft from the second quarter to the third quarter. we really need to see that increase for a lot a lot of reas including productivity comes out of that kind of business investment. we haven't seen that during the entire time president obama was president. we never saw businesses confidence enough to spend on new capital plant and equipment. we need that to happen. i think you're right. i think it will. charles: john? >> what stands out in my mind, 1.6% quarter to quarter annualized increase by core pce price index inflation, we have rapid growth but according to this inflation number the economy is not overheating. the if he has plenty of room with which to go ahead and take a break from rate hikes. charles: this gets me to something i've been screami

danielle dimartino booth, former federal reserve advisor, and john lonski from moody's. we have annika green with us as well. john, let me start with you, do you think that is what the market is reacting to? >> in parts perhaps but it is important to consider the market is very jittery about higher interest rates. that's for sure. and we also find there is concern about the ultimate impact of trade policy. melissa: gary, a lot has to do with earnings reports we heard today but they didn't necessarily say anything about future guidance we haven't heard before. likes of 3m and caterpillar, trade wars, this and that, could be a drag on profits but right now the market is particularly attuned to the comments because they're not new, right? >> first on larry kudlow. i have three words there, nice try, larry. for me there is a few things coming together right now. higher oil prices even though they're coming down a little, higher tariffs and something called peak earnings. p-e-ae-k. came out with 5.6% gdp, raise your hands if you believe in that number. europe is has debt cover

we also have moody's capital markets chief economist john lonski and deirdre bolton.says something about nikki haley that there was this moment to say good-bye, something rarely afforded a lot of people who step down or -- >> right. even quinnipiac poll, something like 63% approve and this was sort of done between democrats and republicans of the job she has done there at the u.n. i think something like 17% disappro disapprove. this is as good and gracious a leaving as i think we have seen for this entire administration. neil: what is your impression of turnover at the white house? much has been said about it, it's like a revolving door and it's bedlam and craziness, just nuts. might not be that way at all, or at least it's changed. >> it's my impression things have calmed down significantly. john kelly seems to be set, rod rosenstein, the president has made a commitment to him, and nikki haley, she's done something nobody does anymore. she's quit at the top of her game. everybody in business, politics, even media, stay too long. neil: overstay their welcome. >> nikki

to susan li, moody's capital market chief economist john lonsky. is he right that we can deal with this this holiday season, it isn't going to be crazy, prices going through the roof? >> i'm not very worried about it but in the event that companies, retailers, feel forced to go ahead and hike prices because of these tariffs, i think it means lower sales and otherwise. let's not forget that of late, we have seen home sales drop and motor vehicle sales drop in part because of higher prices. consumers are showing resistance to higher prices and i think that's going to continue. neil: one of the things i suggest, not that the administration takes notes from me, they clearly don't, but i can't tell you the number of people, maybe you have seen it in your reporting, too, that think the governments pay these tariffs. >> consumers do. neil: i don't know if they properly are prepped for that this holiday season. >> i don't think they actually felt it yet, to be honest, because consumer confidence is at 18-year highs if you look at the numbers from target an

that scared reaction from moody's managing your john lonski.n november. what you think? >> i think that's going to be proven correct. just as in 2016 the polls were way off when it came to predicting the outcome of the presidential election and the pollsters will be proven wrong again as far as congressional election. the only weakness the republicans might have as they could lose some seats in these high income tax type property tax states because people are upset over at the factory losing that deduction. stuart: what about friday's gdp number, let's interpret that. the july through september quarter will find out what kind of economic growth we got in that quarter. what's your number? >> three-point 3%. that's pretty good. that's darn good. you have to realize we have a wider trade deficit to get some support by rebuilding and real consumer spending growing 3% you can't complain. >> you know it matters to the average american? jobs. we have the lowest ratio of jobless claims to payrolls on record. i think the markets in good shape and that m

stuart: managing director john lonski. you've got to prove a base.e have these types of inopportune time. after all then we have unemployed individuals. >> it seemed to me running government is like a business. because the president at a a company, you say to your vice president, cut this, cut back. just do it. run it like a business peer >> got the way it should be done. we are taxpayers paying for this business and we have a right to have a more efficiently run government. stuart: we do. do we think were going together? i think we would be very lucky to limit government spending growth to 1%, nevermind a 5% cut. that's going to be very politically unpopular among those who have some linkage to government spending. stuart: you're getting the money. >> it might make markets happy. think about perhaps raising the retirement age for those that are perhaps right now in their 30s. in the future were gradually going to ratcheted up to maybe 70 years. they had a lot of time to get ready for it. changes such as that would be positive for financial markets.