i want to welcome my guest, john taylor needs no introduction. stanford, worked within the government in various agencies john, thank you for joining me this morning. >> thank you >> all right we had new york fed president john williams on, great interview with steve liesman my impression, got a nice pop out of the markets i think he talked more towards the notion of balance sheet, whether it is really on automatic pilot, referencing comments made in 2017 that it could end so they see it fit, and mr. powell, the previous day in my opinion during q and a did the most damage to the market seeming more stallworth on the notion of the balance sheet. speak to that, why it is hard to calibrate how we drain it away >> you know, i think they have been much more specific about what they're trying to do. that's good. remember, the temper tantrum was a mess a few years ago, it is better than that i think automatic pilot is about the right way to put it, they're able to make adjustments as they want to going forward, so there's flexibility. most important, i

and there were three economists, john taylor, john cogan, and michael boskin. all of them had been big luminaries. there was this young russia expert at stanford named condoleezza rice, a pretty good piano player. she was there. [laughter] bush shows up in the dining room or living room and the day is spent mostly on a conversation about anything they want to talk about. there is a spontaneous discussion about the international monetary fund and reform of it. they do not know what to make of bush, but they have an agenda that they want to talk about. for information and he is asking really good questions. at the end of the meeting, he says to me, that young man can be president and goes to say goodbye to his guest. he comes back to me and he says, ronald reagan's campaign for presidency began in the same living room. the next eye, bush goes to give a speech in the lincoln club of northern california and monterey bay. somebody asked him a question about the international monetary fund and bush lays out in detail, arguments for reforming it. having absorbed all t

that's what john taylor always says having guys that may not be very good at anticipating the future,hank you, ed lazear >> thank you >> thank you, ed lazear. >> happy holidays, my friend >> thank you >> a senior fellow >>> coming up, the dow staging a big negative turnaround as fed chair jay powell chatted with reporters. read this stuff after the fed decision however, futures this morning now down they've been all over the map. we'll get to that. but a big move one way or the other. we'll get you ready for opening bell when "squawk box" comes back we'll talk to cramer that should be good. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's

it goes back 25 years to the work of john taylor and it has evolved.etary policy based on the economy. booming economies require different policy than depressed economies. there is a second point is that that argues arld second form of data dependence. it is selling us about the ultimate estimation -- ultimate estimation -- where is the level of full employment? those are key inputs we have to infer from data. overshoot, the fed reacts and the parlor game we talk about, what are the risks of an overshoot of too much inflation? torres.to craig what is the risk of an overshoot? richard clarida: right now, inflation, depending how it is measured is at our target. we have as said symmetric objective around 2%. it is not meant to be a ceiling. we have operated below 2% and we can operate above. we want to run policy that gets inflation back. tom: this is critical. you say you have a symmetric projection. tric world.ymme this is too important. it is. clarida: getting back to your question, in recent decades, the asymmetry has been towards disinflationary for

and if he had picked kevin warsh or john taylor, they would be a lot more aggressive than jay powellthe gumption in recent speeches pointing out the fed's fall ability in previous eras. they said a marked contrast to the all-knowing consistent descension of bernaki and greenspan. this is a different federal reserve chief, maybe for the better. >> if you look at the last few months, since he spoke, the economy has changed at least from a market perspective quite a bit yellen had predicted she was going to move four times. she wasn't able to do that. we can't necessarily look at what he said in the last meeting and think that's indicative for what happens today because the market globally is changing so much quicker than i think anyone expected. >> look where the u.s. economy is relative to the rest of the world. we're in one of the strongest positions i think we've ever been in. that has played an important -- dagen: we're going to grow -- >> we're taking on fights that maybe we needed to take on today. dagen: we're going to grow this year likely, the u.s. economy, at 3% or more for t

>> i remember when the late senator john mccain was grilling undersecretary frances taylor about transnational criminals crossing the border and whether there were terrorists that crossed that border? >> he didn't do a whole lot to convince me that dhs was able to detect whether terrorists had crossed the border or if they had at some point in the past done that. terrorists are looking for the soft spots and the vulnerabilities to exploit. if we see a vulnerability, best to shut it down before someone exploits it to their advantage. we don't want those threats visited on our shores. >> steve, i see you nodding your head at that. >> dan has this nailed down. ms-13 gang members are terrorists and they are looking for avenues to get into this country. without a wall, it makes it much easier. you could get a strong door. there will be a burglar that will be able to get in that door but it buys time for the police to respond and do what they can do. >> not everybody can bring a ladder to the wall. it is like a red flag. we can see that coming. >> dan, steve, thank you both for being with us. >> ple

john podesta hack, and league programme light withjohn podesta and the dnc. this seems to have been documents on an open server which were discovered by security researchers. ok, emily tayloreen so focused on russia, perhaps they have forgotten to look at china. that is who people are increasingly worried about. ever since president trump pulled out of the paris climate agreement the focus has shifted to what states and local communities are doing to combat climate change. leading that fight you probably wouldn't expect to find a republican mayor in the state of texas. a majority of the people there voted for donald trump and it's a region where oil and gas reign supreme. but as our north america correspondent aleem maqbool found, this christmas season is being lit with the environment in mind. when it comes to saving the planet, trump's america has come under fire for not doing enough. but one little town is trying to go against the grain. thanks in part to its mayor. so here we are in georgetown, texas, on the most beautiful town square, not only in texas but the united states of america i tell you. this is sort of what heaven would look like at christmas. let me ask you

chief of staff john kelly will be leaving by the end of the year though a replacement has yet to be named. in washington, ray bogan, fox news. >> for more on this, we are joined by james taylor, political science professor at the university of san francisco. federal prosecutors, in one of their filings, accused then candidate donald trump of directing michael cohen to make these illegal hush money payments. i guess the question is, what happens right now to donald trump if he's not the president. >> if donald trump, individual one, is a citizen, they would at this point be indicted and go through the legal process in terms of being arraigned and charged and having to hire a lawyer to defend themselves. donald trump is protected by the shield and the sovereignty of the office. there is a certain sovereignty that comes with the presidency in the united states and a great deal of immunity for the president. when you start talking about sitting presidents and impeachment politics, you're talking about this question of presidential immunity. >> okay. but from what we've seen so far, directing these campaign- finance laws, are those impeachable offenses in your eyes? >> i think ev