we have moody's economist mark zandi is here.famously predicted there would be a crash if donald trump got elected. you about he came back -- >> you pay attention to what i say. at least my wife is at amex. neil: tell me about it. tell me about it. it is interesting, i read about the trump call, you're certainly not alone, but now what is your view where things are? >> i think the economy is is fine. i think the economy, six, nine, 12 months ago was on fundamentally sound ground. i think it is on fundamentally sound ground. i think it would take a lot to derail the train. i think the economy is in great shape. neil: first quarter, it is not in great shape. that is anomaly of first quarters, it could be under 1% f that is, would it raise concerns? >> it shouldn't. that is statistical, seasonality stuff. shaving a point off q1 gdp growth. we were growing 2% last year. neil: republicans argue we could grow a lot more with a tax cut. one of the reasons dow advance, there are many, they clear the health care hurdle and repeal and repl

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mark zandi, chief economist at moody's and from merrill lynch management and cnbc senior economics reportersman also here. karen, start with you. >> sure. >> always do that. call you kim. karen, based on what you heard here today, clarity where you think the fed moves next? >> i think they clearly will move higher, and this keeps the door open for them to hike. i'm a little mystified why the market is pussyfooting back and forth. entirely based on activity described as moderate or modest, but broad based across the nation. pressure in the income market, incomes rising, jobs expected to be filled. all good, not too hot. exactly what the fed wants. a nice, steady pressure upward in activity and inflation allowing them to hike. >> assuming you think a hike is coming at some point. any clarity when? which meeting it will happen? >> likely june. i think the key language in the beige book is around the tightness in the labor market. jobs, labor shortages, and they mentioned, i think, the -- hampton said unskilled laborer as well. that's the keenchts having trouble filling low-skilled jobs in some

. >> digging into those numbers and i know you'll have mark zandi on later.ok at a lot of it for future events like tax reform. that hasn't happened yet -- >> may not happen. >> some consumers are still suffering on an individual basis but on balance consumer does seem to be feeling better but it's on a retail by retail -- >> we haven't even talked about that yet. retail is bleeding jobs, 30,000 today. if we have a border adjustment tax, that's a job killer for retail. best buy goes to $2 billion of loss as a result of border tax, it's going to kill more jobs. >> let's say you put on that ceo -- >> not anymore. >> and pretend do you want the president to do something he is known to intervene in industries to try and save jobs and save industries from themself. >> you can't bring back retailing jobs from mexico, right? >> some of them can't be made in the u.s. >> retailing jobs aren't going anywhere, they are just -- >> you can't stop them. >> you can have tax reform. there's enormous amount of things we can do. i'll give an example, we have internet taxation