matt: here is christine lagarde. lagarde: hire u.s.rates could result in significant witht volatility consequences that go well beyond the u.s. borders. in weighing these risks, we think there is a case for waiting to raise rates until there are more tangible signs of wage or price inflation than are currently evident. words, we believe that a rate hike would be better off in early 2016. matt: the imf cut its u.s. growth forecast. the dollar iss overvalued and if it gets much stronger it would be harmful. the imf says "the fomc should remain data dependent and defer its first increase in policy rates until there are greater signs of wage or price inflation than are currently evident." janet yellen said she still expects to increase interest rates this year if the economy meets her forecast. erik: the last key employment figure we get before tomorrow's jobs report. the government says fewer americans applied for unemployment benefits and the total people -- total number of people getting jobless -- job insurance payments is a smallest i

this is what lagarde was talking about yesterday.purged from janet yellen and the fed to get us over as we have been before to stay around that 2%. we took about this earlier in the hour. how easy is it to do this? it is easy to talk about. richard: both are challenging. textbooks saying that printing and enough money will get inflation. so far, it has been tough to do that. the fed believes that if there was an easy enough policy they would do it. the second is the accumulation's challenge. you want to reflect the economy but you do not want bond market vigilantes to go crazy and so often much. the fed is playing a very delphic -- delicate game. tom: of the vigilance -- are the vigilantes way out front? drew: they are kind of the shut up and show me kind of guys. i think one of the important things to think about anything about inflation as that 2% or 3% doesn't matter it is the stability of inflation over time that makes a difference. if you have a highly variant cpi, people have a hard time making decisions. tom: it is better than

let's share what christine lagarde at the imf had to say. lagarde: we think that there is a case per waiting to raise rates until there are more tangible signs of wage or price inflation than are currently evidence. believetherrd words, we that a rate hike would be better off in early 2016. joe: everyone was really surprised by this comment and i cannot believe the imf is telling the fed what to do. i did not find it that ridiculous. the fed has told the ecb what to do. they have told the ecb they should do qe. the fed has advised the bank of japan. they are always telling smaller countries what to do with their economies. we should get over it. they listen though? does janet yellen say, yeah, let's talk about this? that yellent think is going to consider what christine lagarde has said it all. i do not think it will have any impact on policy, but i did not find it that ridiculous. we did wind up seeing a reaction in the bond market. year yields were up 1%. we had the 10 year up at its highest level since october and it kind of reversed. we

christine lagarde says the imf has reason.e believe the trade-off between starting to early and risking disinflation and having to return to lower rates is higher than the risk of slightly above 2% inflation going forward. just last month janet yellen said she still expects to raise rates this year. members have raised -- open the door to a rate hike. going to be really interesting how the imf advice plays at the fed. the central bank does not take too kindly to outside pressure. we will see if this has a difference. pimm: thank you, peter cook, our chief washington correspondent. i sawi was shocked when the headline roll across. a massive surprise. pimm: more on what treasuries are doing, rising for the first time in four days investors may be reevaluating whether. it has gone too far. -- thepoint the yields yield on the 10 year german almost half a percentage point to the highest level since october. pimco's chief investment officer for global fixed income explained what is driving the market earlier on "market makers." >> y

lisa: do you agree with christine lagarde? mike: no, i do not. you look at unemployment, it is effectively the fed's long-term target. inflation is a little bit low but not terrible. if it ticks of the little bit, it will be in line. it seems the fed has waited a very long time. the markets probably get hit a little bit with the way -- with the rate hikes, but if we cannot face a small increase, we all have big problems. betty: christine lagarde just set the world on a bigger -- we are already watching the fed, watching them even more. i hear what you're saying, mike, that likely they will still go in september. it does not really change very much. but she just made it a whole lot harder for janet yellen. didn't she? mike: i don't think so. when you think about what the fed cares about, the fed will give lip service to international the developments. it but that phrase in the statement of publishers ago, but it does not -- the fed cares about the financial markets. if something goes badly overseas, the fed will pay attention. it did in 1998. 2008

let's hear what christine lagarde had to say. forstine: there is a case waiting to raise rates until there is more of a tangible sign of inflation. hike would beate better off in early 2016. joe: everybody was surprised by this. i cannot believe the imf is telling the fed what to do. the fed -- they have advised the bank of japan. -- i think americans think, i cannot believe they are telling us what to do, but they should get over it. yellen isthink janet going to consider what christine lagarde said at all. i do not think it will have any impact on policy. but i did not find it to be that ridiculous. alix: we did see reaction in the bond market. -- we had the 10 -- year yield at its highest level since october. the yield continuing to grind lower. joe: we had this crazy three-day move and then it faded. imf -r point about the -when i first saw the news, i was really stunned, but i switched over to the other side. the argument from a pure data perspective. it would be risky for the fed to tighten too soon and if they will be data

anyone going to listen to christine lagarde.ed is not going to sit there and say, yeah, do what she says, guys. does it affect the long-term outlook? lisa: it probably increased the chance of the fed hiking in december. initial jobless claims are holding up. fundamentals can be interpreted as better. exactly, -- exactly, they stabilized earlier in the day and the european markets are following that. how itmuch with had to do with her words per se -- there was some central bank support -- mario draghi's real uncomfortable comments. get used to it, guys. have you seen the yields up 1%? that is crazy. george: that's not typical. you are right, the move to the fed hike could have taken place, but the selloff is an long-term rates. whenever the selloff is an long-term rates, eventually they flare out. has rates at zero, basically. we are close to normalizing policy, but until they do, we have this thing called the stock market which is of being the circuit breaker to the bond market. -- : how is that george: if it comes under pressur

and from christine lagarde yesterday.me a much more important report than it was just a few days ago if you will but because there have been so many questions about the u.s. economy. 226,000 jobs would suggest again strengthening u.s. economy, not booming, but better than what we saw in the first quarter. guy: peter, people are buzzing in new york about that sort of disagreement. it's not a disagreement, but the conversation that exists with the imf and the fed. what are people in washington saying? peter: that perhaps the imf crossed the line. it is not the first time that the imf has had advance -- advice or guidance for the u.s. or other countries. but the fact that christine lagarde was so specific, that she said it's probably -- so publicly when the fed is trying to shed its calendar guidance he was very close. we had footage a few weeks ago. you can see the relationship they had together. did she give a heads up? did the fed know this was coming? did the fed say this is a mistake, you're going to try to boxes and he

rethink their may be more fireworks from lagarde.ch part of me hopes that she will. this is a big allegation. hans thank you so much. ian bremmer thinks this is all tactics. hans nichols will be live throughout the day and then he travels to luxembourg to keep us up to date with the eurogroup meeting. that is it for "the pulse." stay tuned for the "surveillance" team. they are live from new york. you can follow me on twitter. hans nichols is also on twitter. ♪ announcer: this is "bloomberg surveillance." tom: merkel is civil, the guard is silent. greece is stable, greece is fragile this morning. it is a data dependent fed. janet yellen will wait until she sees inflation. fedex reports a first indicator of the summer american economy. this is "bloomberg surveillance ," live from our world headquarters in new york. i'm tom keene joining me, vonnie quinn and brendan greeley. greece is sort of quiet today. brendan: except for the words being thrown back and forth. this debate has always been so politic. it has become personal recently in

and then madame lagarde will speak later.day after tsipras said the emf bears critical responsibility for the situation. a big day, and that paves the way for the meeting we have tomorrow and luxembourg. tomorrow he will put that in perspective. let's begin with the greek story. the pensions are -- tensions are rising as the deadline to find a solution to the debt crisis rises. our international correspondent joins us from berlin. how has it tsipras speech gone down in athens? >> we see alexis tsipras. the greek stance is we have gone down as far as we can go. we will cut pensions and financing and plans for debt relief. the ball is in the creditors court. no change in tsipras's speech. almost universally in greece people think this is a bad deal. at the same time, if you look at opinion polls, most people think it is a bad deal. when push comes to shove, 57% say it is better to pay this deal rather than risk greece going out. anna: on's, we have heard from angela merkel and -- hans we have heard from angela merkel. they are

lagarde: thank you. you know we essentially agree with the president of the fed in that the interest rate hike must be data-dependent and based on sound and as detailed and granualer data and analysis that is possible, which is clearly the line that has been articulated by chairman yellen. over and over. so we totally agree with that. what we are seeing in the data that the team has analyzed, is analyzing is that the inflation rate is not progressing at a rate that would warrant without risk i'll come back to that in a second, a rate hike in the next few months. which is why, to make the point, we are saying that the economy would be better off with a rate hike in early 2016 when hopefully the inflation data and numbers will have consolidated. and even if it is to a risk of a slight overinflation relative to the 2% rate that is mandated under the fed's rules, because we believe that the tradeoff between start too early -- starting too early and risking disinflation and having to return to lower rate is h

here is the imf managing director christine lagarde. u.s.olicyigher rates could result in financial stability consequences that go well beyond the u.s. orders. in weighing these risks, we think there is a case for waiting to raise rates until there are more tangible sign of weight or price inflation than are currently evident. words, we believe that a rate hike would be better off in early 2016. just last month janet yellen says she expects to raise interest rate this year. if the united states economy needs are forecast. a couple of key economic reports before we get the may jobs report. the government said last week fewer americans apply for unemployment benefits. the total number of people getting jobless insurance smallest in the more than 14 years. meanwhile, the bloomberg consumer confidence -- comfort index fell to a six-month low. the higher cost of gasoline may be the culprit. the average price is the average since december 1. also, waiting to see who will make the next move in the greece bailout talks. the greek prime minister plan

my exclusive interview with christine lagarde. stay tuned for her take on the u.s. economy and why the imf yesterday took their expectations lower for the irs economy. >>> meanwhile a cyber threat from the far east this morning. the u.s. government believe chinese hackers stole information from four million americans. this breach considered one of largest thefts of government data ever. china is fighting back saying that the allegations are irresponsible. >>> watching developments in the telecom sector this morning. companies racing to find partners for deal from the t-mobile dish talks looking for more and more companies looking to make merger moves with the sector. not just u.s. british giant vodafone looking for some kind after merger with liberty global. we'll talk all of that coming up. roughly four million government workers personal information was stolen, what officials calling one of the largest thefts of government data ever. blake burman in the washington with the story. blake, good morning to you? >> hi, there, maria.

mario draghi, lagarde, all meeting together. tom: the other rumor we will start here this morning on "bloomberg surveillance" is christine lagarde is meeting with sepp blatter. let's put that on twitter. top headlines this morning. vonnie: are they going to intensify talks? as you mentioned, in germany, there was talk about how to avoid a greek default. francois hollande was there along with christine lagarde and the heads of the ecb and the european commission. talks went past midnight. they were trying to hammer out an offer that greece would consider. the head of the organization for economic cooperation and development projects the two sides will reach an agreement. >> when you have so many people, so intelligent and smart and important and influential trying to get a deal, my experience is you normally get a deal. it may be at the 11th hour. it is human nature to expand this to the bare limit, but there will be a deal. funny co european lenders -- vonnie: test every field -- tests have revealed a shakeup -- there are report

lagarde: thank you.agree with the president of the fed in that the interest rate hike must be data dependent and based on sound and detailed analysis which is the line that has been articulated by chairman yellin. we agree with that. what we are seeing in the data the team has analyzed is the inflation rate is not progressing at a rate that would warrant without risk. i can come back to that. a rate hike in the next few months. we are saying that the economy would be better off with a rate hike in early 2016. hopefully, the inflation data and numbers will have consolidated. even if it is to a risk of a slight over inflation, relative to the 2% rate that has been dated under the fed's rules. we believe the trade-off starting to early and risking disinflation and having to return to lower rates is higher than the risk of slightly inflation going forward. on greece we certainly welcome the constructive meeting which has taken place yesterday between the greek prime minister and the president of the european

today we get to hear lagarde's response. it is pretty harsh criticism of the imf. how do they deal with it? >> it is unfair. the imf is playing a subsidiary role. it is way beyond the normal quotas. it is twisted to abide by whatever the ecb is coming up with. there should be no blame allocated to the imf at all. it comes to negotiations with the ecb. i think in terms of getting a resolution it is clear the lines need to be kept open. we are talking about capital reforms that need to happen the next few years or later. jonathan: the two questions we try to answer every day is what breaks the deadlock and what forces the issue. the ecb faces a reputational risk when it comes to providing for greek banks. are we at that point? >> i think the ecb won't want the responsibility of being seen as the institution that causes a graccident. i think they will be prepared to keep the system afloat. it is important to remember there are other sources of funds that could be taxed. there was money earmarked for the greek banks. there are profits for the s&p program. there are all

catch her full interview with christine lagarde beginning at 6:00 a.m. eastern. >>> now to a deal or at least the whiff of a deal. you would have known about it had you been watching us back in august last year on the show. we told you that a merger between t-mobile and dish was in the works, but first take a look at some of the companies's other attempts at merger. in 2011 t-mobile and at&t tried to make a go of it. that didn't happen. last july they tried to merge with sprint, failing at that too, and ilead came in, out of france, dying to make a marriage with t-mobile, t-mobile said forget it. we'll stand by ourselves. what makes this deal? hasn't been confirmed but there is discussion of it. joining us neil begley, senior vp at moody investor services and charlie gasparino with exclusive headlines on the story. >> we should point out what's different now is charlie ergen of dish knows he has to do something, back is up against the wall. we'll speak to the guest about that in a minute. here's a couple headlines that i am picking up from bankers close

christine lagarde told the governing crisis was governing.agarde has been the most critical or skeptical, semi--- saying there aren't enormous differences. if she is privately indicating that they are getting the money and making that payment, that is an indication they are on track to get this wrapped up over the weekend and before the 30th. >> thank you so much, for now. how tight is the timeline and how much pressure will ts ipras get? guy johnson: this is the big question on whether we get the deal tonight and if tsipras has the votes to pass this in parliament. he is, on one hand, the energy minister. he is also the leader of the platform within the syriza party. if you want a sense of what he is up against, listen to what he has to say. >> the bailouts stride our country and, unfortunately, the european union, central-bank and international monetary fund the institutions, have played a negative role in the country because they insist and blackmail us to implement programs that bring recession, destruction, and paralysis. guy johnson: no

guy: christine lagarde yesterday at the meeting which was at luxembourg.get some grown-ups in the room on monday. that is the idea. we start to get the leaders to meet, as a result, we start to get progress. mr. tsipras starsky had at that -- mr. tsipras starts to hint at that. caroline: not much in terms of stocks. we are seeing an effect on the bond market. clearly, the contagion is starting to wrap up. guy: we'll take a look at bond markets in just a minute. we will bring you the opening of the athens market. we'll give you a sense of where that is going. the greek banks yesterday mixed. we will see how they opened this morning. twitter question of the day, is greece influencing your decision-making when it comes to your investment decisions? give us your thoughts. u.s. markets yesterday quite interesting. all focused on the fed, i would say. caroline: feeding into the fact that they are not going to be hiking too fast too soon. goldman sachs saying they're not going to increase the hike until december. guy: we will get a sense of how europe is going ov

imf director christine lagarde

christine lagarde, the head of the imf, has said we don't care. in arrears if it doesn't pay back the $1.6 billion euro debt they owe the imf. the next tranche of money they would get, $7 billion, to stay alive. as the world watches greece teeter on the brink of default, we bring in a man with more than three decades of experience as a u.s. diplomat, much of it as ambassador to greece. charles ries is former u.s. ambassador to that nation. he's currently the vice president of the international division at the rand corporation. joins us now in a fox business exclusive. ambassador, what must you be thinking right now of all that's going on on the ground? >> well, liz, as a diplomat, the thing that i get is even though this is about economics, it's really a political struggle. and you rarely see a situation in which east side, both sides have -- either side, both sides have so misassessed the interests of the other side. the the germans have misassessed, they have not adequately understood the impact of what they have done in greek politics, and espe

erik: so christine lagarde is wrong?not in terms of she is in a bad situation and europe needs help, but janet yellen can stick to her guns. peter coy: i am not saying with the fed should do, but i am saying whether they will do. janet yellen versus christine lagarde -- lagarde is more dovish which is funny coming from the imf, but that seems to be the perspective. stephanie: maybe she is more dumbest because -- maybe she's more dovish because she has more problems that janet yellen? peter coy: she is really concerned about growth. the fed, janet yellen, are waiting perspectives. the hawks and the doves and the fomc might be saying, let's find a middle course here. that is probably a rate hike in september. erik: we are clearly must focus on the number of 280,000 and but there were positive revisions from the previous two months. peter cook: in march, there was a report that only 85,000 jobs were added. that is revised up to 119,000. there was that slowdown in the first quarter, but it looks like the u.s. economy started

we see them talking, giving economic forecasts, in christine lagarde's case telling everyone that needslts in the room. you see a human side to her. once upon a time she interned for william cowan. it's fascinating. mark: i think her time in washington gave her the strength to deal with all these competing interests that she has to deal with overseas, particularly now that the imf and christine lagarde are in mashed in this business with greece. scarlet: it's quite a business. areorget as much as there billions of dollars that need to be paid back to the imf, there is also money that needs to be paid back to the ecb in july. whether they can get anything done by june 30 and actually return the money, even though it has to be ratified and various european governments, there's another hurdle after that. doesn't end. you go from in turn, then years later -- she was a synchronizes swimmer as well. scarlet: she is a very conflict woman. --didn't matter she interned a very accomplished woman. it didn't matter who she interned at four she would have gone on to something great. i came up with a

christine lagarde said the fed should wait until next year. eric green joins us now. former fed president. eric: no, though i wish i were. alix: former fed staffer. what would you do? eric: i would not hold off until 2016. domestic mandate. they have socialized the whole notion of higher rates for 9-12 months. they want to raise rates, the question is will they have enough breathing room for that bias to be realized. i suspect it is not about inflation or jobs. it is about growth momentum. as long as they are seeing stronger growth, it is the direction of growth. that will be sufficient to get them off the market. alix: they have clearly said data dependent, but which data point? retail sales and durable goods are not great. which is more important and how do you ignore the week signals? eric: if you look at the data since the last fomc meeting, they had a three month average that was negative. if they meet in june, it will be about 0.8%. durable goods orders have been a bit weak, but across everything else we are beginning to see something better. for them it is real

i think of madame lagarde's "new mediocre," do you think greece and madame lagarde's new mediocre isr the economy? daniel: i think the term "new mediocre" -- i asked her about it, and it cannot of a document termed "new mediocrity. " it basically describes a world that is not performing the same way. tom: are there elements of the chernin we have now and that so many feel with what you wrote about of the 1930's? daniel: 2008, you could sort of feel the banking crisis of the early 1930's was is a few years earlier. i think we do have a very turbulent summer culminating in that period in august where you often have financial crises. tom: ok, so he is setting his calendar to it. vonnie:! august! daniel: people are on vacation and things are building up. the reaction you're getting, and you saw from the imf them a talking about childish behavior, the people running greece now are not serious. they would not play these risks. someone suggested that actually the greek government would do much better if they could outsource its negotiations to the iranians. tom: i like that. we will talk ab

deferschristine lagarde interest rates until the first half of 2016. in janet yellen's court. >> and why this campaign will be different from rick perry's last one. scarlet: good afternoon, everyone. i am scarlet fu here with alix steel. good friday eve, everybody. we are looking at a pretty steep selloff across the board, but off the lows of the session. 50-day around that moving average, which a lot of traders --

lagarde, the managing director of the international monetary fund has set a hard deadline for greece to reach a deal. she says greece will not begin in a grace. -- a grace time. >> the imf has an obligation the its membership from sri lanka to switzerland to have a program that is credible, but we are always flexible. , wehey are good proposals can review them, of course. mark: euro area of finance ministers are meeting with talks deadlocked. the euro area part of the deadlock expires on the same day the payment is due. -- the maker of wearable fitness tracking devices -- there you hear the opening bell and the cheers. fit it pricing above shares yesterday, raising -- now valued at $4.1 billion. that's a look at the top stories at this hour. coming up, the federal communications commission is voting on new rules for robo calls. it could change the way pollsters work. prices in china fell in fewer cities last month. we will tell you what the government is doing to restore buyer confidence. not: computer code may sound sexy but it has made numerous appearances on movies and television.

christine lagarde, does not. she says that they fall short of everything one should expect by which she means that at this point in the game she would have expected greater economies in the state in public spending in order to balance the budget for this year and next rather than additional taxation. >>> the yits is sending 250 tanks and other armour to allies. u.s. defense secretary ash carter made the announcement. it will be the first deployment since the end of the cold war. it's seen as reassurance after russia annexed crimea and ukraine last year >>> it could be one of the world's biggest trade deals - it is one step closer to reality. looks like the u.s. senate will give its backing to the u.s. and 11 other countries. patty culhane reports. >> reporter: on the floor of the senate on tuesday, there was debate about what kind of day it was >> it's a sad day. >> it's not a great day. >> the president is a step closer to a top priority, getting the trans-pacific partnership done. it's a fra trade deal wean the

saidrday christine lagarde the should wait until next year before raising rates.c green is with td securities and he joins us now, a former fed president -- eric: i wish i were, but no. alix: what would you do if you were in the fed right now? hold off untilot 2016. when you think of the imf, they have a different mandate. the fed has a domestic mandate. the fed has socialized the whole notion of higher rates for almost nine to 12 months. they want to raise rates. the question is are they going to have enough reason room for that bias to be realized. i suspect it's not about inflation, it's not about jobs, it is about growth momentum. as long as they are seeing stronger growth and you can pick your number, it is the direction of growth, higher as opposed to flat or lower, that will be sufficient to get them off the theyin september alix: have said data dependence, but which data point? what ends up being more important? if you look at the data meeting,t april's fomc they had a three-month average that was negative. when they meet in june, assuming we get a 1.5% fo

hans: probably lagarde. at least on getting a deal, he needs lagarde and merkel. those are the ones holding out the most. this is not all merkel. you have to have -- the spaniards are not all that excited about a soft deal. the question for tsipras is who are his allies. maybe you could say juncker but their relationship is not great. brendan: the shot clock is when capital flight out of greece reaches catastrophic levels. 1.8 5 billion euros came out of banks friday alone. what evidence do you have now as to whether that is continuing today? guy: i have taken a look at banks closed to me. there are not many people in them. there are no queues at the atm. over the weekend we did see huge numbers of orders to withdraw money. you place your order and 24 hours later they give you your money. we do not have a good indication. pretty much what we have at this stage. the ecb has been forced to come in and raise the ela. money continues to flow out. people are saying that tomorrow may be the capital flight stops. people are expecting a deal tonight. brendan: seems like t

good morning. ♪ tom: lagarde in silence.national monetary fund has criminal responsibility. greece is stable and fragile. it is fed day. janet wellen -- janet yellen will wait and wait until she sees inflation. looking forward. this is "bloomberg surveillance." we're live from our world headquarters in new york. tsipras just speaking in grace 15 minutes ago. brendan: what we are looking for is how serious these acquisitions go. the more he speaks, the more friends he loses. he lost the imf and he is losing the eu. tom: government will say big no if no viable agreement. in des moines for me -- brendan: for me the most fascinating thing is we all have started saying capital control. tom: did you see the headlines? you are dead on. let's catch up on the other top headlines. here is vonnie quinn. vonnie: the greek prime minister insisting that his proposals meet the demands of the creditors. outdoor -- afterwards he says that greece is a sovereign state and the government has a mandate. angela merkel says greece and its creditor

julie: we are monitoring headlines from a press conference being held i the i am a's christine lagarde and the dutch finance minister. he is saying that is unthinkable for greece to get aid by june 30. earlier, the two leaders said they are calling for a summit on monday to urgently discuss the greek bailout. we are getting various headlines but the bottom line is they have not come to any kind of agreement. now looks like the dutch finance minister is not optimistic they will come to an agreement in the short-term, so that calls into question where that leaves greece at this point. they will be holding a summit on monday. investors in the united states are monitoring all of this, putting a debt in the rally we have seen. it really has not taken much of a hit. maybe a little hit on these headlines but we will keep monitoring the press conference and see if anything else substantial comes from it. much.t: thank you so the latest headlines out of europe. what's take a look at how the euro responded to this. euro area leaders will be holding a summit on monday, so they are kicking the can

but christine lagarde sparking volatility in the financial markets. investors caught in two minds whether to sell or buy but the negative sentiment has prevailed and continuing here. let's look at the nikkei and the topix for this friday morning. both in the negative. now that sentiment continues here adding also to the uncertainty, ai i have to mention we are approaching the key opec meeting in vienna. more are expecting to hear about output targets and we are waiting to hear about the main jobs number in the u.s. and weekly jobless claims which came out on thursday seemed a little bit supportive of job growth. we'll see how the main numbers come out. domestically, investors are watching the nikkei very closely. it does remain resilient with some saying it could remain higher. however others saying that it may be overheated. and the nikkei is down 100 points right now. >> and in currencies the dollar keeps going up. what is going on there? >> the dollar/yen continues higher. 124.38. words from christine lagarde was a warning that the dollar may have

lagarde said she wants to delay raising the rates until next year. and she's not alone. others express concerns about moving too soon. steve liesman has more. >> the i monetar fund not mincing words asking the hold of raising interest rate rates until 2016. saying they should raise until rates and inflation starts to rise. >> a suggestion that a interest raten wait a little and such interest rate hike can wait until 2016. forward governor hail brainerd said the economic weakness may not be all temporary. and issued caution in rate hikes. he is uncertain about whether the we tempora but there are more questions about the economy now than this time ted is looking at two criteria. first whether the job market is improving and er moving back toward the 2% target. but recent economic suggests there is a third criteria. officials are waiting to see if the economy can handle what they call rate normalization, or consistent march hire rating toward a 3% to 4% rate. in a recent speech janet yellen didn't call it raising rates, she called it normalizing policy as in more than one

tsipras and the creditors, jean-claude juncker, mario draghi, christine lagarde. happy with the proposal greece has put forward. they have made suggestions of their own. it seems the imf has more issues than the others. we are unsure whether it is the imf being concerned there is too much taxation in the new package or whether there is any issue with the pension reform program. at the moment, we have two competing programs in place. we will see when we come out of the meetings whether any progress has been made, whether we have a narrowing of differences. we thought the packet proposed by the greeks would be hard for mr. tsipras to pass in parliament. if we get any changes, it will make things more difficult. even if we get an agreement today, we still have greek domestic politics and german domestic politics still to do with. we are not there yet. scarlet: guy johnson, thank you. matt: the french are the men in quit spying unfriendly governments. wikileaks says the national security agency has spied on president francois hollande and two of his predecessors, alon

lagarde: i think the i.m.f. membership continues to be disappointed with the five years' delay in implementing the governance reform that was actually decided back in 2010 and largely advocated by the united states of america. where the only critical step lagging or missing rather, is ratification by the u.s. congress of such ratification. i continue to have discussions with various members of congress on that particular matter. i very much hope that this ratification will take place in due course. i think that in many instances we have demonstrated our ability to mobilize resources, to provide technical assistance to give support as well as the case, for instance, in the three ebola-stricken countries recently. as well as the case in relation to ukraine recently as well. as well as napal. so i very much hope that by demonstrating day after day, country after country, program after program that we actually produce public good helpful for the economy of the united states, congress members will be convinced that i

guy: so why does christine lagarde say what she is saying?ut the elections there, clearly what is happening in the economy and the political story is exciting but this will be dominated by the fed. is that what she is worried about? the fed needs to do this? andrew: i think the imf are looking at trends in the world economy and thinking that perhaps we can get back to those growth rates. i have talked the last two or three years about a new normal. the forecasted growth is still over 3%, still quite respectable , and we have got to get used to the fact that we will not necessarily have the go getting growth we had before the financial crisis. now, christine lagarde can speak for herself but that is maybe one of the factors that the imf and other forecasting bodies are looking to get back to those trends, which, perhaps, are not achievable now. anna: 2014 -- that time horizon? andrew: i think the growth before the financial crisis by the imf measure was about 4%, so this is a slowdown. we are still going to see some upward momentum to the glob

christine lagarde is insisting on pension reform. angela merkel gave a speech this morning, saying yes, there still a possibility, they're looking for ways. she said her usual comments on how thei when there's a will there's a way. she did not say that a departure from greece would absolutely be a rupture to the eurozone, to the economy. privately, there's a lot of conversation a about what different countries are doing to contain the contagion. olivia: thank you so much. we will have more from hans drought the show -- throughout the show. julie: the big ipo that priced last night. we are talking about that bit. it raised $372 million, placing shares at $20 apiece. the size of the ipo on tuesday amid stronger-than-expected demand. even at the 17-19 dollar range, it was still more expensive than a stock like apple. olivia: thank you so much. olivia: only about a $4 billion valuation. olivia: you know what's worth $24 billion? caribbean be in talks to raise financing at a valuation of $24 billion. -- air b&b. they're projecting 2015 re

christine lagarde saying the u.s. 2016 to hike interest rates. wait for more evidence the economy is solid and inflation is moving to their target. do you think it's appropriate for the imf to give policy recommendations to central banks? previously, it did give one to the ecb. >> the imf always held views on the global economy, on individual countries. they it's part of what they do. the question is should it be a guidance? i don't thing it can be. central banks have to do what is right in their view. markets comment on that. institutions comment on that. central banks are focused on their mandate what we are seeing here in the united states with a negative first quarter in the more final figures, we are going to get a big bounce back in the economy in the second quarter. it's going to be some volatility in this data. that would entice the federal reserve to wait a bit longer to get more clarity on the medium term developments in the economy. there is a risk they get behind the curve. i think this has, to some degree

the fact that chancellor merkel lagarde.ether to offer -- got together to offer a united front is a good sign. but lagarde. the prime ministerg difficulty keeping his own coalition together. significant opposition to accepting a deal and with the appeal to the greek people he seems to be setting himself up for disappointment. the only way out is to accept these terms and to move forward with very difficult internal reform decisions. if he does that he risks division in his own party and great public dissatisfaction. he said he might have to put such a deal to referendum with the greek people. speech as a today's way of setting up the great people for a bigger decision at the end of this month. they've now postponed payments until the end of june. alix: grilling the creditors in greece are haggling over 7.2 billion euros. it is a drop in the bucket. why not just pay it? how much money is that really when they go so much more -- owe so much more? guest: a lot of this is about politics and keeping his coalition together. a lot

christine lagarde said last week they would declare an immediate default. thatraises the question, would then give greases other creditors the ability, not the obligation, but the ability to declare cross default and we demand immediate repayment. that is what they have to face before the referendum even gets here. betty: i would have to say that is the most calm looking bank run i have seen so far. do you think part of that may have to do with this idea that either the greeks are in denial or they believe that in fact this is going to happen, but it is not perfect them that much? -- not going to affect them that much. >> it won't get that much worse that they can't get through it. almost 50% youth unemployment. the economy is in tatters. you saw emergency liquidity assistance to greek banks. scarlet: one thing i can't help but noticing with all the pictures of people lining up, it is all older people, pensioners lining up at the atm machine. if you don't see any young people. what are they doing? >> some of them are skateboarding. i saw that what i was wal

christine lagarde: work on the basis of new proposals. more to do and includes a more detail than what we have been. it is still short of everything should be expected. there is room for negotiations and work. we will be constructed in a short amount of time. hans: as the positive momentum was building yesterday, the german finance minister put out a statement saying they would not release funds on tilde was a vote in athens and the parliament. -- release funds until there was a vote in athens in parliament. not just being endorsed by brussels but accepted by the tsipras government in the tsipras led parliament. it just turned in berlin-adsense story although technical stories continue. -- berlin-athens story although technical stories continue. francine: look at the holdup, whether they get the stamp of approval from germany and from tsipras' party are they the most ferocious in terms of having to convince it is really credible and they need -- they mean business? hans: we could be surprised by the finnish parliament or dutch parliament

between matteting lagarde and mr.oks like the euro finance meeting is supposed to sort of come to a final conclusion and will be suspended or at least will have aand you separate meeting starting at 11:00 p.m. local time. badk it all down just how talks are talking. it has been a remarkable 48 hours. last monday night, everyone was on the same page, saying we're headed in the right direction. there were details to work out but everyone is in the right direction. almost like we are in incrimination mode were both sides are talking past each other and rejecting each other's proposals. the earlier meeting was seven hours. no resolution out of that. will takeike they another crack at it starting at 11:00. i think i will have a late-night here in brussels. .carlet: it sounds like it we are talking about the pension plan reform on the table here at sales tax. whatever they might agree on monday has now fallen apart? on toplineagreed numbers on what the prime it -- primary budget surplus would be. the disagreement was on the

alix: christine lagarde also spoke today. she said there is still a possibility of a greek default. then you have the greek finance minister saying the two sides are close enough to make a deal. he also said greece made a new credible offer to the euro area. today's meeting, there is a signal to the partner and institutions by presenting a canrehensive proposal that bring results. alix: greece has to pay the $1.7 billion to the imf by the end of the month. scarlet: a suspect in the cap -- south carolina shooting is in custody. he was arrested in shelby, north carolina. authorities say you walk into a historic black church in charles thomas night and killed by people. the shootings are being called eight crime. about theobama spoke tragedy about 35 minutes ago. toat some point we have reckon with the that this type of mass violence does not happen in other advanced countries. it doesn't happen in other places with this kind of frequency. and it is in our power to do something about it. church'sthe trust and -- the church's pastor was one of those killed. alix: when it comes to a trad

we were talking about christine lagarde telling the fed what to do.e imf is a different game to play. they have to be worried about the downside risks. they have to worry about stability issues. the fed has to worry about the bond market and the housing market. tom: speaking of the post data, let us talk about economic growth year-over-year. it isn't what it used to be. for those of you on radio, i will put this on bloomberg digitally around world. we are just back to where we work -- we just aren't back to where we were in the late 1990's. vonnie: goldman sachs not seeing that we guess -- weakness. we don't know the first chordae appeared we don't know if this is something we see every year in the data. how long is it going to take the fed to start trusting if we like the data again? josh: what we are seeing is that some elements of gdp are estimated and then as more data comes in, things get revised. there's the quarterly services survey that was out this week and that shows that it will support gdp. it will be revised aboard towards flat. another s

coming up on "mornings with maria," international monetary fund director christine lagarde. she sat down with maria on whether the federal reserve should delay a decision whether to raise interest rates until next year. >> what we're seeing in the data, particularly on inflation is that the pickup is very slow. and we believe that there is a good argument to actually defer until early 2016 any rate hike. sandra: you will not want to miss maria's exclusive interview with the imf chief at 6:00 a.m. eastern right here on the fox business network. >>> yesterday, marco rubio spent time being #oneluckyguy with the ladies of "outnumbered." here is what he said. you're not fear if you recall that the growing number of gop candidates is going to hurt your party? >> i don't. i think we'll have a very good debate. these are quality people that will be well-financed, have a good message. we agree on a lot of issues, we disagree on others. we'll talk about those. think from a competitive process you get a better nominee. sandra: he says it is better. rick perry shortly after that discuss