we have with us loretta mester, the president of the cleveland federal reserve.topic at the conference of inflation. it used to be how to worry about inflation and now we are worried about getting inflation. you said you are confident we will get back to 2%. how will we do that? loretta: when you look at factors figuring in and inflation expectations have been relatively stable. we have growth above trend growth, we have labor market improvements and we do have some shocks in term of oil price, commodity prices, and the depreciation of the dollar which are deflationary or disinflation factors, but in general, because the economy is better" is above trend, i believe and reasonably confident we will get back to 2%. in context of the fed, will we get back in time to justify a rate increase as early as mid-september? loretta: i am in the middle of looking at data, evaluating what is going on and we are going to be putting in new forecasts at the september meeting. my view so far in looking at some of all the factors is that the economy can sustain an increase in inte

ink: that was loretto mester jackson hole today. to ask jim about this inflation picture.ms like the most worrisome part of what the fed has to deal with. they haveof act like it under control and maybe need to cap it, but it seems to me they cannot get inflation going to matter how hard they try. we have never seen it really pick up. >> i call this make jack or economics. yet the song, "you can't always get what you want." this is what happened in the 1930's. thought he could fix that with qe. i spoke recently and he admitted it was an experiment, his words not mine, but it looks like i failed one. qe does not get you inflation. you need -- mark: let me ask you a question about a half an hour ago, his question was, what is the value of the 2% efficient target? what is the value? >> is steals money from savers and gives it to bankers. 2% sounds tame. the dollar value of in half. another 35 years, it is half again. oft is a 75% of violation the dollar. it steals from savers, retirees, anyone with a fixed income, and enriches bankers who are basically debtors. it is transfer

bloomberg spoke with loretta mester. loretta: the fed is a credible institution and we want to set our policy based on the economic data. i think we are consistent with that. i think the discussion is going to be about, what is the economic information telling us in terms of our outlook and risk. st. louis fed president james bullard says the recent market volatility should not encourage the federal reserve change its economic outlook. consumer spending increased in july. purchases rose 3/10 of 1%, similar to the progress in june. wages and salaries increased the most since november. market turbulence may be affecting how americans view the overall economy. consumer confidence fell in august to a three-month low according to the university of michigan consumer sentiment index. the shareholders at mylan have agreed to go ahead with the hostile takeover bid for perrigo. the price, $33 billion. now it is up to perrigo shareholders. their management have recently offer value's destructive. the ceo of ashley madison has stepp

speaking at the fed's jackson hole symposium mester tells the wall street journal there's probably more down side risk to her economic forecast due to volatility and uncertainty about china: one stock story we're watching here in europe, a french payment company based on reports it has submitted a bid for u.k. firm world pay. this according to sources of reuters. french payment company is trading down by around 3% on reports that it submitted a bid for u.k. payment firm worldpay. there was also speculation that j.p. morgan would be looking to buy worldpay at some point. down about 3.7%. this as european stocks moved lower due to the drop we've been seeing in oil price. fast nating to see the correlation between price action in the stock market and oil prices as well. we'll leave you with a look at how futures are trading. dow with a lower open of 112 points. we'll bring in a panel of experts after this short break. >>> welcome, everyone. you're watching worldwide exchange. i'm seema mody. here are your headlines. china pumps more liquidity into the money markets. this as one official bl