jonathan greenspan has 39 degrees right now and he says the snow is collecting on the cars, the roofs and the decks and skis should be ready to go out there. >>> here is a look at his back deck. jonathan green span, in you see the general movement is to the northeast up here so it is bringing snow into western colorado. in the next 24 hours, the low moves into wyoming. the cold front comes here. it splashes the mountains with moisture but we don't see a lot in denver. we might see an isolated thunderstorm but not a lot. then into northern wyoming and a little back wash here, so we'll have snow in the mountains. right now not going to be a ton of snow to an inch. some areas pushing up to steamboat springs but a definite sign things are changing. might get a sprinkle late and then into the evening an isolated storm here, but not a lot of moisture for denver around here. might see severe storms late in the day eastern colorado as the front comes through tonight. could be problematic for those we'll have to watch there. >>> here is a look at the temperatures. warm and windy across the eas

jonathan: we would agree with alan greenspan that the bond rally has gone too far.y wars, there's been a truce. the fed is saying they will be low for long, they will go really, really slow. anything about what is priced into the yield curve in the u.s., it is even slower than that. closer andotten closer to the market, but there is still a big disconnect there. you don't want to be pushing out the yield curve. we are not uber bearish on rates, but we think there will be a normalization that is not priced into the market. do you want to add inflation protection? those indirect bidders were huge, almost 70% of demand. that a play to deal with this? jonathan: tips look relatively attractive. -- theyin a low risk have pushed down risk premium everywhere. in the context of that environment, tips look pretty good. inflation is not yet at the target, but if you look at the tips market, what is embedded in that price, they are certainly less expensive than nominal bonds. investors are seeing that. you are not giving up cary, not giving up yields. inflation is running below

jonathan: i guess rather ironically the fed has become more of a democracy over the last 10 years. it is not the greenspanolcker fed. it seems to have been a fed that is not led from the front by the fed chair. does that make a material difference if chair yellen did the part and was replaced by someone else, given the federal reserve as it currently stands? that is a great question. we have a lot more downs. yellen has shown herself to be quite dovish. the members who actually vote has been the core, and the core has been quite dovish. if we still have that complement a very dovish core members in likely the next chairperson would have to contend with that and find some balance between the hawks. we see with a lot of the commentary from fed officials weeks, youst few still have the dovish members who are concerned about the economy, but it seems like yellen is starting to acquiesce a little too the hawks, who want to see at least one rate hike this year. alix: when you look at the fed for 2017, they will likely have to preside over some kind of recession. where is the rift in the market, as you have a pr

jonathan: gary, way to take me inside the fomc. if you went around making that speech, the speech, and creating a lot of noise, what would share greenspanir greenspan say to you? volcker, i was there for his years as well. paul would not have tolerated that. there would have been disciplined, but it that way. chairs have been increasingly laissez-faire about it. that was actually my attitude for many years as well. participate should in the mitigation effort. i've changed my view for two reasons. i'd only get turned out to be effective, and i think it diminishes the franchise. i which i mean, i'm not a fed president anymore. i'm sitting at talking about policy. judgmentdents in my should not be talking about policy. they should be talking about it at fomc meetings. david: the mandate is price stability and employment. needmployment, you economic growth. it just has to away. -- just a half step away. what would be the effect of a modest gradual interest-rate raise at this point? mr. stern: the effect on economic growth would be modest at most. i say that for a couple of reasons. i don't think either inside or outside the fed, people are