lockhart remains confident policy will be tightened this year.omorrow and global market's proved temporary. filing for ae ipo. challenging spotify and apple. guy: the president of china heads to the u.s. for an official visit. david tweed has more. what is he going to say to u.s. business? are worried about the access it has been getting to the chinese market. ever since edward snowden revealed the nsa had been involved in some espionage in china. china has been cracking down on the access to government agencies, to the banking system of some american providers of technology. this is a big issue. especially in washington state. it exports more value goods to china than any other u.s. state. it is an extremely important state. he will be visiting boeing there. he has all these concerns about access and also china's concern about access to the u.s. market. one of the things they will be talking about is the bilateral investment treaty. this is a treaty where some of these concerns could be sorted out. later today. he is -- he has meetings with the

now lockhart is coming out doing some damage control. tom williams is doing damage control. joe: do you expect her to walk back a little bit from her corrective language? david: my answer, yes, i hope so. i don't know if there is something janet is trying to do with the massaging of the statement that i'm missing, but i do think this was a miscommunication with the market. it was an attempt to be dovish and coddle the market when there was a lot of volatility, but the market took it as a sign that something more negative was going on. i think the fed has to know that those sorts of sentiment indicators are really important during this transition. i don't think they took that into account. they said there's a lot of volatility and a lot of slack and we can wait a while and the market will probably be happy. then they will come one day and said, wait a minute, the stocks are down 2% in the dollar did not do what they thought. it ended up rallying. alix: one of the ideas i have seen floated as if you actually razor target for this -- raise your target for the fed, it actually g

lockhart and the rest of these guys pretty much 9-1 voted no on a rate hike now.t is less than a month going to do, teddy, to make it an opportunity to raise rates? >> well, i think, liz, you know, we talked about this last week when you were here and the week before. liz: yeah. >> i think, quite frankly, the fed has overplayed their hand, and i think the selloff on friday was counterintuitive. i think it was a reaction, you know, at least in part to the fact that i think the street was ready. i think a lot of folks were ready. i think we're tired of the soap opera, and they just want the fed to move on, raise rates. and i think that the excuse, the excuse was actually sort of weak, because if you're going to use china and the eurozone as an excuse not to raise rates, they're never going to raise rates. liz: well, and to that end, lockhart was saying it's unlikely that the hit from china's problems is really going to affect us. he's sounding a totally different tune finish. >> yes. liz: and, alan, right now you look and he says we're comfortable enough with the in

lockhart, as you know, scott, is a centrist. he's somebody we follow very closely to kind of get a feel for which way the board is tilting. he still seemed very much on board with a rate hike this year but supported a pause in september, scott. >> so steve, you have got lacker with a dissent, lockhart saying go, bullard, who doesn't have a vote saying go. what's the likelihood of the overall fed being swayed by october. >> i think it's very much in place. you have to watch the data. you have to watch the comments that are made. the question is sort of the yellen/dudley more dovish wing of the fomc as to whether or not they're adamantly opposed here, but the other guys, i think it was about letting the markets settle down and waiting to see if there was anything more serious that the markets were telling us from the recent volatility. but if things have passed and they seem to be quite a bit calmer than they were previously, then i think that group of people we were just talking about are quite comfortable hiking rates. >> steve,

lockhart, as you know, scott, is a centrist.closely to kind of get a feel for which way the board is tilting. he still seemed very much on board with a rate hike this year but supported a pause in september, scott. >> so steve, you have got lacker with a dissent, lockhart saying go, bullard, who doesn't have a vote saying go. what's the likelihood of the overall fed being swayed by october. >> i think it's very much in place. you have to watch the data. you have to watch the comments that are

the market was react to go certain things going on in the world. >> and look at lockhart today.tell from some of the other fed members. you heard dennis lockhart who is somewhat middle of the road when it comes to the fed ideology saying it was this august period of market turmoil that had us worried, that just -- that kept that decision from maybe going the other way. >> i think that extends to commodities which could have deflationary signals which is part of the federal reserve mandate and extends to the dollar which we know they have been worried about and bond market. it's not just the stock market. the fed does get a lot of criticism for responding to the stock market moves. >> at inflection points it's always going to be ambiguous, kind of a touchy situation and when it's a close call and they seem to want to err on one side or the other that's what you have. >> i like your point, mike, what you were saying is maybe what's happening is the interest rates reacting to the price of crude oil. if there's one thing -- a couple different factors, stock market, there's inflation

. >> it is a new bar in toronto called the lockhart. potter fans will recognize it as a reference to the professor in the chamber of secrets. the bar has neon sign that reads all wiz well, the final words of the final potter. >>> the famous apollo theater using new technology. will have performances using holograms. the hologram technology is also being used as educational tool for people who tour the theater during the day. >> that is really amazing. >>> we're coming up on 5:00 hour and there is a warning for people in had one east bay community. one man posing as a comcast employee. >>> heat index for today and the potential warning for people who plan to spend time outdoors. introducing the one-and-only volkswagen golf sportwagen. the sportier utility vehicle. . >>> good morning. crews still on the scene of a massive fire in bay point that burned four homes and sent a number of people to the hospital. what we know about their injuries coming up. >>> and are you ready for football? the nfl season officially kicks off tonight. the spec

in the end, more hawkish comments and an earlier stage from president lockhart, governor powell, presidentwilliams, and to some extent from vice chair fisher, i think people were quite unsure weeks ago about which way this would go, and as recently as the last few days, maybe people refer to this as a coin toss. the probability was a bit below 50 but no one was willing and out. -- no one was ruling it out. alix: probably liddy was going even lower when it comes to october. austan, you were also against a rate hike. we are happy with what you heard and do you think it is more a 26 teen scenario -- 2016 scenario? austan: i was happy and this is that i think it was a self-inflicted wound if they tried to raise rates now. the most surprising thing about the announcement is that it almost came with the soundtrack "meep meep meep" because they have been backing up from what they've been saying the last week or so. the conditions don't warrant it. personally, i still think that expected,rse than we europe is not getting better the way the optimists want, and the u.s. is only ok. when it comes to

. >> separately dennis lockhart, the president of the atlanta fed, said he expects the central bank to raise rates at some point this year. >> that data-dependent fed is likely taking notice of the latest read on housing which wasn't particularly pretty. existing home sales fell more than expected back in august, making it the first drop in four months. higher prices partly to blame. but as diana olick reports, a change in the lending landscape may also be keeping some buyers locked out of home ownership. >> reporter: the autumn chill came early to the housing market this year. august home sales dipped nearly 5%. that was well below expectations and a wider than usual monthly move. sales fell worst where prices rose the most, in the south and west. >> as the prices rise and hurt affordability, home buyers are pulling back. >> reporter: realtors point to very weak demand among first-time home buyers, who have a harder timesaving for down payments and meeting credit score requirements. fha is usually their loan of choice but the nation's big banks have all but gotten out of the business

you can see it really autumn and out. -- you havee it dennis lockhart speaking.hawkish of the team. honey fivethink basis points is a big deal. i want to point this out. a technical note out of talking about technical patterns. we're talking about some technical patterns like head and shoulders. if it ends of hitting a certain resistance we could end up seeing a era should market -- a bearish market. scarlet: i was looking at volume and volume in the s&p stocks is lower than the 10 day average. nasdaq companies are above the 10 day average. i attribute that to the biotech stocks. ,long with health care shares they are tumbling. hillary clinton said she would combat the high cost of drugs. as a democratic front-runner, this captures the public's anger of high health care costs. alix: or that with some technical -- that was some technical resistance. you can see it play out as the money comes out of the asset class. you had fred bullard talking about the vote was really close. foraid he would have voted a hike, he would have dissented. i should point out if you loo

on wall street after fed officials speculations of a rate year.se later this federal reserve bank lockharteoted against hike, it was, quote, a close call, which makes him the fourth maker to speak out in favor of the rise happening sooner rather than later. u.s. justice department is said to be conducting a criminal investigation into volkswagen, the auto maker admitted to cheating air pollution tests, officials familiar with the inquiry. in frankfurtnged monday, prompting them to look trade violations. and the state of the chinese data from an alternative set of indicators not be allngs might that bad afterall, data collected from china's most used search engine and main bank card network suggests that the economysecond-largest is stabilizing. the findings tie in with the conclusion of the china beige released earlier this week. and we'll have some breaking news out for you right now. the asian development bank has outlook ford its 2015 and 2016 and has cut its growth forecast for the reason. the details. >> so this is a new report adb.sed by the going through it, it's not quite encouragi

atlanta fed president dennis lockhart is speaking this afternoon and then home builder lennar and software maker red hatch will report earnings as well later on today. >> rsa has shed 1/5 of its value in zurich. shares down 1.17. rsa is down 20.5%. this is after the swiss insurer dropped the bid for its rifle. zurich says it's no longer able to continue through. it's expecting losses of $275 million from a series of explosions from a container explosion. they've downgraded their ratings on rsa after the announcement. >>> another top story we're watching today involves apple and apple is owning up to a rare cyber attack on its app store forcing it to pull some of its most widely used apps in china. wii chat, ride sharing service dd quide. it says that infected apps were created by developers who used a fake version of its software coding system called x code. it's not sure how it got through the stringent screening. looking at another day of declines on the german dax. >> this is a bit of a decline. i thought this would weigh on the stocks. i don't think this is apple interfering in the sho

you can see in the dialogue that's come out both from dudley and atlanta governor lockhart they're discussing the impact and ultimately the fed will do what they think is right given the domestic conditions in the u.s. but the possibility that a september hike does not occur has increased. >> so the meeting at jackson hole just highlighted how divided policy makers are as to whether september is the right time to raise rates but do we think as market participants and journalists we focus too much on the timing of the first rate hike and we should be focussing more on the path to normalization? we know the fed's preferred path is a gradual one. if they have to deviate due to stronger growth, inflationary pressures, that's when it has more of an effect on emerging markets and all fixed income assets in general. >> i can't whether we're overdoing the link to commodity sell off. is it overdone? >> we think so in the margin. ironically if you look at some of the underlying import volume data it's crucial to look at volume rather than price. because prices all come off. if you look at things like c

you had fischer, lockhart. obviously, we are listening to yellen. i think she is trying to put more clarity on this whole thing of uncertainty. if they had their window. >> didn't they do it? i think you're saying they shouldn't have done it. >> i think they should have. the think there would have been a sell-off early and the stock market would have rallied and would be higher today. >> i agree with what you're saying. i find this actually a little bit puzzling. it seemed to me this last no raise was very event specific on china trading badly. >> global. >> global, right. so to know -- when do they meet october 28, 29? a lot could happen between now and then. so i'm surprised that she didn't say -- >> you cannot turn on a dime what's going on. tim has been talking about it earlier with brazil. there is stuff set in place. it's like turning around a supertanker here. >> does that affect the u.s. economy? >> yes. it affected it because they changed their monetary policy, the way they view it. the stock market rallied 3% into that meeting last week. i

stanley fisher, dennis lockhart and jon williams as well. in the dovish camp, janet yellen, william dudly and charles evans. cnbc has been speaking to the federal reserve presidents and their views on monetary policy. >> my preference is that we don't have the most telegraphed decisions as in 2004. data dependence is what we should be doing. >> from my perspective at this moment the decision to begin the normalization process at the september fomc meeting less compelling than a few weeks ago. >> i have been talking about the normalization of rates for sometime. this week's events complicate the picture but i think it's too soon to say it fundamentally changes that picture. >> the economy is returning to normal. we're not sure we're there yet. >> we're ahead of the fed decision. xetra dax just a touch higher but a little bit of weakness elsewhere. big deal in the cable space with altice and friends buying cablevision. asian markets were in rally mode ahead of the fed. nikkei up, shanghai down. all eyes on the fed and that also applies to comm

dennis lockhart, i should say.y, thousand that brings to four the number of fed officials who are open to the idea of hiking rates by the end of the year. they only have two more chances, the october meeting and the december meeting. the fed has acted prior without a press conference, but they think given the magnitude of such a hike, it wouldn't risk doing so without explaining it, so more likely than not it would be a december event. there are ten who serve on the federal open market committee, so you'd need a couple more to go along with them. we'll keep you posted. in the meantime, focusing on this iran deal and josh earnest saying that he's very, very confident that the iranians are not only going to comply, but there's talk of disbanding it and scratching is going nowhere fast. we've got a former state department official on the candidates calling for ripping it up be ask can start ising from scratch. your view is that would be risky. >> i don't personally agree with the agreement, i don't think we should hav

dennis lockhart of the atlanta fed was sanguine during the time the economy was enduring a total battering. they are the ones complacent. they are complacent about tightening. so complacent i bet they think in their heart of hearts the foolish european central banker was dead right to raise rates twice ahead of the great recession just because that was the disciplined thing to do. hoover was disciplined, too. what is the cost of waiting? manhattan real estate turns too hot? listen to the toll brothers call. that's what you got from them. maybe back to the number of housing starts we had before the great recession. chicken and beef prices. you know the fed can't control the size of the herd or number of healthy birds. tell me what these people are worried about they need a rate hike at this very minute as china goes down another 1,000 points. you read tomorrow's paper. my bottom line is i haven't heard a compelling argument yet. let's just say tightening in an obvious bear market like we have, leads me cold. how about you? much more "mad" ahead. in july a brilliant technician told me the pr

vice chairman stanley fisher, lockhart and williams. but in the dovish camp is janet yellen at the head of the table and also daniel, william dudley and charles evans. now in the weeks and months leading up to today cnbc has been speaking to some of the fed presidents about their views on monetary policy. >> my personal preference is that we don't have the most telegraphed policy decisions like we did in 2004. i do believe that at a at a dependence is what we should be doing. >> the decision to begin the normalization process at the september fomc meeting is less compelling than a couple of weeks ago. >> i have been talking about the normalization of rates for sometime. this week's events complicate the picture but it's too soon to say it fundamentally changes that picture. in my own view the normalization process needs to begin and the economy is performing in a way it's prepared to take that. >> economy is returning to normal. we're not certain we're there yet. >> let's continue the debate with the global economist at fidelity global

. >> authorities say lockhart was seen leaving a french quarter club. >> it must be difficult to turnowing money at you to, you know, give me a little service outside of here. >> it takes a serious person to turn down that faucet once it's full blast. you've got to draw a line in the sand and just say, you know, no. >> but antonia's told me that she's crossed her own line several times. >> having sex for money wasn't something that i thought i would do, and then i did it a couple times when i was in a dark place in my life. >> how did you feel when you did? >> i felt empty. and kind of sad. and i realized from that experience that, you know what, i can't handle it. i just emotionally can't handle it. >> do you like stripping? >> sometimes. yeah. but i've liked it for a really long time. and i'm ready to like something else. i've quit about ten times, and i always go back. >> and is it just the money that draws you back? >> it isn't just about the money, but it is the money. >> as the hours pass, i meet other girls who've traveled here to work. girls like 29-year-old mitzi, from one of

this was like lockhart who had artie been saying that. we knew this was coming down the line.leaders out on the field regardless whether they vote or not the still sending them on the field. it is still sending them out on the field. how can you go in october? there is no press conference. since there is not one scheduled, if they just said today before we would have a press conference -- we will have a press conference, then you would know. alix: are we in a world of persistently low rates to come? like we will never get out of the cycle. short-term interest rates are negative. globally i think we will have a hard time. the u.s. will lead the way. i thought we had a lift off a couple of days ago. i do think we will see it early 2016. the real economy, they are in good shape. they are looking for a good retail season. workers.st is the the demand out there. i think the economy will shine through, move ahead. we are in a low yielding environment for quite some time. matt: you do see wage pressure coming? that has been the problem. even with five point 1% unemployment, there is

. >> both stan fisher and i think lockhart said the first move will be 25 basis points.out the communication thereafter. i think the fed is trying to hard to emphasize gradual pace. a lot of accommodation in the system and this is the first of many steps overtime, very gradually. if they're data dependent they won't hike for the sake of hiking. they'll hike in response to the economy. again, obviously a close call. i would say the economy is doing well enough for the fed to start liftoff. it's not a big surprise for the markets. >> so how do you think they will react? have you moved into this camp that says actually it could be positive? >> well, look, there's certainly a risk that there will be a short-term telloselloff. as we go further out, is this a much more sustained hit to market psychology? i'm not concerned that's the likely outcome. certainly some risk. that depends on what happens in china and elsewhere in the globe. >> dan, where is the opportunity here for investors? >> to some degree it's been given already with the market's delclin decline. our argument is

coming here more to the center we have guys like lockhart, a confirmed centrist, but he says i have gotten comfortable enough on the inflation question to take a first step in one of the coming meetings. over my shoulder over here to the hawkish side, jim bullard says we're about as close to our inflation goal variableses in 50 or 60 years. jeff lacker from richmond, he says this is likely to be transitory so i remain confident that inflation will move back to the fomc's 2% objective bringing us back to janet yellen and this question of will she be hawkish or dovish. i want to tell you what she said last time in the -- back this way, nice job, what she said last time in the press conference. in light of the recent developments, we want to take a little bit more time to evaluate the likely impacts on the united states. it's kind of in the center. the question is does she give us any more clarity on this issue of inflation -- >> that's a lot of fed communication. arguably overcommunication, this new era of let's communicate and be transparent but does it confuse us at the end of the day? doe

jim lockhart that forward saying that he's confident the rate liftoff will occur later this year, making hour. i have up the world interest rate out ability to monitor. the number you want to pay attention to hear is this 1 -- 48%. this is what futures traders are pricing in as the level of a likelihood of raising rates. that probability has been fluctuating, but just under 50% as we get fed commentary. yields move higher today and especially from the depressed levels where they were last week. reflected in the dollar trade. the dollar has been moving higher against a basket of currencies, pretty much holding steady since this morning with a 1% gain. getting back to stocks, one of the things fueling the push and pull on the bearish side, we have biotechnology pressure. these are two etf's that track by attacks. after a tweet by hillary clinton that said she planned to introduce a plan that would reduce prescription drug prices, it that had an immediate effect on many of these stocks. mark: thank you so much. a double medic whirlwind for president obama this week with back-to-back visits

>> he said it with us and lockhart said it, and there's a lot of people talking about this, what bullards trim meat that does not just exclude energy, and something richard fisher started in dallas with the staff there. there it is right there, hitting 2%. that does not just exclude energy and food, but says anything that is above and beyond the normal movement of prices, rid of that on a routine basis so we look at the core of inflation. six months of the year, 2 %. jim cited the year over year, 12 month average, closer to 2% for a while here. the question becomes yellen's confidence with the idea that you have things working in the system to put downward pressure on inflation over the next several months and has to do with the overseas weakness, the overall decline in commodity prices, and the extent to which she's confident of to look through that, you know, we have to hike rates despite the downdra downdraft. >> i lived through 18% interest rates. i did not live through the 20-year deflation in japan, so, for me, i don't think the fed should ever try to actually orchestrate higher in

eastern, fed president dennis -- atlanta fed president dennis lockhart speaks on the u.s. economy.2:00 p.m., the chinese president visits boeing. tom: a little moment of silence for those of you in manhattan -- there it is, gridlock. will you be able to get home? -- will you be able to get home? surveillance single best chart right now. it is a common chart at an uncommon time. the nation has measured predictable growth. jon ferro is in the and they are debt right now, underlying tension as austria confronts per capita gdp mediocrity and refugees from the middle east at the same time. jon ferro, things changed in all of europe, in austria, and that changes the dialogue as they confront refugees and migrants. what have you observed in vienna? jon: number one, i look at that chart, i look at the per capita gdp in austria and it is still a wealthy country. as it flattens down, that is crucial. that means people are not getting much wealthier. when you look at the eurozone in its entirety, on a plummet rates very high. capita gdp is not growing. that fuels the anti-immigration policy f