we just had loretta mester here.oing more from, let's call the public statement and powell certainly gave the impression they thought the economy is gangbusters and they can afford to keep raising rates at this accelerated rate that feels true to me. i agree, it feels true to me i think overall the fed is thinking that and powell is thinking it. their comments were different and reiterating how different they would publish i think that's appropriate it's not appropriate in my view what the president is saying about the fed, he shouldn't be saying that, on some of his content, i don't disagree, if the fed raises too fast it has been one of the causes of the recession in the united states, at least half the recessions caused by that >> i don't think it's right to expect the consumer to keep spending at a 4% annual rate if it was 3, it would be huge. i don't expect the business side to be 0.8. you can see a giveback, the customer goes down a bit but you expect business to come up, don't you. >> >> that shift would be ve

to keep things going for quite some time >>> that was charles evans clevelandal from president loretta mester u.s. jumps in bond yields is not immediately concerning she said yesterday's spike was just a one-day move in a volatile market but did acknowledge the risk that the u.s. is diverging from other global economies the yield on the 30-year treasury crossed that pivotal level outlined by jeffrey gundlach last month gundlach warned on twitter that yields were on the march again. he said if the markets closed with the 30-year yield above 3.2% on two separate days that would be a "game changer." so watch out for that. nick is still with us. nick, powell's probably talking about this rosy scenario, this period of economic expansion in the united states lasting for quite some time. what could bring it to an end in your view? >> i think one is monetary policy we do think that the interest rates will move above neutral and will start to become restrictive for the economy. the other is the fading of fiscal stimulus. the bigger impact of the fiscal stimulus, which we think will start to fade aroun

we have loretta mester coming on >> that's a big interview. >> if we need to see the other problems that the fed, worried about tariffs, now we're worried about just how strong the economy really is we'll get some gdp data. interesting times. >> there's some questions about where the origins of that saying came from. >> may you live in interesting times, i think we're not suffering. like lloyd blankfein said on the way in, we're not in those -- the higgins boats headed up -- it's just money, right >> no matter what, we know you'll have an interesting show, joe. thank you very much for that we'll see you at 6:00 a.m. >>> let's talk more about this early morning joining me is dan vera can we step in and buy right now? >> you should be buying. i think this is walmart clearing out its inventory. >> you are telling me stocks are on sale right now. >> we started the s&p with a multiple at 19, now it's closer to 15 and dropping as company profits come in at or above. we're seeing more good than bad, certain pockets of weakness within semiconductors, areas like that. we're getting back to a more

it is interesting that the whole narrative now is on jay powell and loretta mester on the fed.e bonds to fund these fiscal deficits, you will have the reaction of interest rates and no matter what the fed does or does not do. nobody talks about this. it is not always about the fed, it is about fiscal policy and the dramatic stimulus at this late stage of the cycle at a time when we are at fully employment >> perfect take it apart for us, ron. >> david is saying the issuance of trillion dollars bond means si issuers are going to have the pay more that price is the interest rate. >> of course, as david noted that he'll go back to econ 101 the fed does control long interest rates in as far as quantitative program is driving down by bonds. now there are net sette sel down by bonds. now there are net sette seers. they are pushing supplies in the marketplace and all things being equal and pushing rates higher we have a global economy we had the financial hiccups along the way. >> you both identify other slugs of reasons why >> chinese selling >> why interest rates are going up >> wha

richard clarida and loretta mester, who both raised the idea that the scope of the decline in stocksbe enough to -- the fed from this gradual pace of rate increases. the fed is on track to send rates higher. short-term yields are going to rise. i think a better way to say it is the rise in yields has been postponed, but maybe not put off altogether. nejra: yes, the rise in yields has been postponed. thank you. citigroup increasing its bullish treasuries call with u.s. growth slowing, and we are looking ahead to u.s. growth as well. wes goodman from our mliv team. thank you for joining us. you can join the debate on our question of the day. we tell to us and the mliv team. tv on your bloomberg. the question we are asking on mliv is what is most of blame for the stock rout? let's focus on oil. total has reported net income of 3.96 billion dollars, coming in ahead of estimates. it raised its 2018 production growth target from 7% to about 8%. the question for total and big oil in general will be where to spend all this extra cash come on dividends and buybacks, or on new megaproject