mr. powell on that. >> time ofthe gentleman has expired. the chair recognizes the gentlelady from ohio. >> thank you, mr. chairman, thank you, ranking member and thank you, mr. chairman. certainly as one would expect with you being the chair of the federal reserve that the questions would be centered around economic projections, economic developments, financial stability, monetary policy. but i'm going to keep in my true form of askin gyou the same asking you the same question that i've asked everyone who has sat in that seat. are you familiar with section342 of dodd/frank. >> yes, ma'am, i am. >> so with that, the office of minority and women inclusion can you tell me in your short time, which i recognize but you also have almost a half decade of being chairman of that board, tell me what you're proud about that's under your leadership with this group? >> i've been involved with my seventh reserve bank presidential search and we've been able to select diverse candidates and i'm proud of that. i think the reserve banks do a good job on this.

mr. powell: does this bill have a name? >> i believe it is mr. crapo's bill. its a very constructive enterprise and the aspect you are talking about i think are worthy. let's talk about what mr. foster was talking about. this is wonderful, talking about the national debt. we have $21 billion and chairman hence our link is very good about putting that -- and hensarling puts that number up every time we come into the room. $21 billion national debt. i was a state treasurer in maine and we knew how to balance our books and spend only what we took in. when i was there the debt clock was unwinding. now we have about 245 billion dollars for year in interest payments on that debt. do take attack from the folks that were here from the first administration, that this is a problem? >> i think we are not on a sustainable fiscal path. can agree this was a problem. my second day here in congress, i cosponsored a bill, a balanced to the unitednt states constitution to finally force washington to live within ns. mean it= do you think that's a good idea? a supporter of the ba

mr. powell. appreciate that. let's talk about what mr. foster was talking about. this is wonderful talking about the national debt. this is $21 trillion. mr. hensarling is careful to put up it up every time we comb here. i tell you it makes my belly sick. other folks in last administration mr. powell, this is no big deal, bruce. $21 trillion in national debt. i used to be straight treasurer in maine. we knew how to balance our books and spend only what we took in. when i was there debt clock was unwinding. now we have 240, $245 billion per year interest payments on the debt. mr. powell, do you take a different tack from folks here earlier, last administration, do you think this is a problem? >> do i think -- >> $21 trillion in debt? i. >> i think we're not on sustainable fiscal path. >> i would agree with that. we can agree this is problem. with that said, sir, my second day here in congress i could sponsored, first bill i cosponsored balanced budget amendment of united states constitution to fin

mr. chairman, chairman powell, congratulations. i know you've heard it many times but we're glad to have you here. would it be fair to say the current situation is willing to review and question decisions made by the fsb, the financial stability board, in the past. would you be willing to review and question those? >> sure. i mean, i think we always -- if fsb doesn't make decisions about u.s. regulation, they make recommendations and if we were to enact something in a regulation we would put that out for comment and anything like that could be reconsidered in princip principle. i don't think any anything that comes to mind but maybe you can help me. >> so as much as their opinions have influenced policy, there's one in particular i'm thinking about. in 2013, the fsb instructed the international agency of insurance supervisors required them to have insurance groups. there seems to be concern among u.s.-based insurers that this would be bad for the u.s. market and u.s. policyholders so many times the leadership attempts to hide behin

mr. powell also serves as chairman of the federal open market committee. prior to his appointment to the board, chairman powell was a visiting scholar at the bipartisan policy center as well as a partner of the carlisle group. he has served as an assistant secretary and undersecretary of treasury under president george h.w. bush. prior to joining the administration, he worked as an attorney and an investment banker in new york. chairman powell received an a.b. in politics from princeton university and earned a law degree from georgetown university where he was the editor in chief of the georgetown law journal. without objection, the witness's written statement will be made part of the record. chairman powell, again, welcome, and you are now recognized to give an oral presentation of your testimony. >> thank you very much. >> you're going to have to hit the microphone, though. >> thank you very much, mr. chairman. and thank you, ranking member waters and members of the committee. pleased to present the monetary policy report to the congress. on the occasion

mr. powell had to say.rsonal outlook for the economy has strengthened the my personal outlook for the economy has strengthened the since december. each member of the fomc is going to be writing down a new set of projections and appropriate monetary policy as we go into the march meeting. what we are seeing is incoming data that suggest the strengthening in the economy. we see strength in the labor market. we see data that in my case, will add confidence to my view that inflation is moving up to target. fiscal policy changes can have an effect. seen in the policy. the flattening of the yield ofves has been a precursor recessions, but largely because in prior recessions, that had to raise rates quickly to hold inflation down. that is not the situation we have now. guy: the fed chair speaking on the hill yesterday. good morning bob. should i count on four hikes now? bob: yes. the outlook for the u.s. economy, close to 3% growth this year, i think, if i am wrong it might be slightly over 3%. the probability of

mr. powell. i looked at your background. you are well prepared for this. , you have arienced deep compassion for people. to i'm asking you to do is every once in a while say, hold on, mr. president, this isn't right to be shipping the food to the poorest people in this country and denying them the right to go into the grocery store to buy food. gentleman has the expired. the chair will recognize the gentleman from pennsylvania. >> welcome, chairman. the fed supervises several insurance companies that own thrifts. congress has taken a strong interest in ensuring fed supervision reflects the business of insurance and the privacy of state regulation of insurance. most notably, congress passed legislation in 2014 country that capital rules for insurance companies are tailored to the business of insurance. we appreciate all your work on this rule. separate from the pending moreal rule, i believe could be done to ensure that on the ground supervision of insurance companies is proportional to the risk of these companies pose in term

mr. powell es. >> i don't mean. -- schultz is great on his job.acious, why does he say that? what benefit is he giving america to say that kind of stuff. david: i don't think you liked what he said. >> why would he go say it. david: we're getting hook. >> nice talking to you. bye now. melissa: returning to the scene of the deadly shooting. stoneman douglas students are getting ready to head back to school for classes tomorrow morning. just moments ago florida governor rick scott spoke to members of the media throughout florida, highlighting an action plan to make major changes to keep students safe. fox news's mat finn, live in parkland, florida, and what is the latest? reporter: melissa, the governor highlighted fact state legislatures here in florida have a week and five days left in session which they can vote on his plan. he is obviously encouraging them to vote yes. some highlights and proposals from governor rick scott, he would like a mandatory law enforcement officer in every school or at least for everyone thousand students here in florid

mr. powell. i appreciate your long time here, and i think i'm at the end of the line here today you just to deal with a couple quick questions. in determining interest -- back in 2006, congress passed the relief act which authorized the federal reserve to pay interest on reserves at reserve banks however, when the bill got amended, the federal reserve in determines authorities interest rates was left to the board of governors, not to the entire federal open markets committee we know this is a valuable tool, using the entire committee to determine monetary policy. my question for you is, would you support an initiative on legislation that would give the full role of determining what the competent at the -- interest on excess to an entire expanded fomc and the federal reserve >> the full fomc decides the range for the federal funds rate, and the ioe remember is set -- so the voting members of the fomc who decide that i amount -- i would say as a practical matter, this is not a problem we need to so

mr. powell for being here. welcome.ome of my colleagues have talked about where we are and the economy seems to be getting better, we all agree with that, we would disagree on why and how, i personally think that goods is as a result of action that is we took several years ago to stabilize, secure and improve the economy and it's now working its way through the system, but i will leave that debate another day. i want to associate myself with the comments made by mr. meeks, i would encourage you as well to keep a close eye on the cra. i also want to take that and expand it a little bit more, i presume that the fed would not be interested in an economy that worked for wall street and did not work for main street. i assume that the fed would not be interested in economy that just worked for texas and didn't work for new york therefore i presume the fed has some degree of interest in not perfect equity but only some equitable distribution of the benefits of a good economy, is that a fair assumption or am i completely off? >

mr. powell: that didn't need to come up, david. thank you very much.: so when microsoft is moving forward, you decide to take the company public in 1986, and at that point you are a billionaire? close to it? mr. gates ah, yeah, pretty close : to it. within a year of going public, i think. there is some fortune cover that says the deal that made bill gates $360 million or some weird thing like that. david: all right. how did it change your life? or it didn't change your life at all? bill: that whole period of time was amazing because i was hiring people as fast as i could. i brought in steve ballmer, who was good at that, and he was helping out. we had a sense of urgency that we wanted to lead the way, but i was really busy. so, you know, if some friend had tried to call me, i would not have had too much time for that. i was really into building this company, and i was going out and telling people about the magic of software, which is good for microsoft, but also helping them understand the opportunities and the huge change agent that software, and even

. 0n certainly, that timing —— bad timing for mr powell.port to the house financial services committee and is sure to be grilled by lawmakers. wall street will be watching with bated breath. department store chain macy's will report fourth—quarter results. last month the company announced it was cutting thousands of jobs month the company announced it was cutting thousands ofjobs as it struggles to compete with e—commerce firms. and in a case which could have wider implications, the us supreme court will decide whether microsoft needs to turnover data stored overseas to prosecutors in america in a drug trafficking investigation. joining us is maike currie, investment director, fidelity international. good morning. let's pick up on the us theme because if you look at the numbers now come you would be forgiven for thinking one of the volatility over the last couple of weeks was never there, we're back up to the levels of before. we are, the us markets as recouped a lot of losses. all eyes onjerome powell. this is his chance to draw a line in

mr. powell. david: if you take a look at earnings, and interest rates, what are you looking at in equity markets for the rest of 2018? michael: i prepare foresee prices -- i prepare for surprises in the upside of those areas. we are watching for changes in the marketplace at think -- as things that have -- as things have unfolded over the last few months. we could end up with higher earnings than people suspect and lower multiples on the market. shery: thank you so much for your time. michael holland joining us from connecticut. coming up, we have more on the markets. ground, justg around that 38 mark after seeing the largest one-day move ever, jumping more than 100% in the last session. this is bloomberg. ♪ shery: this is "bloomberg markets." david: let's go to mark crumpton. congress has yet to agree on how to keep the federal government open past thursday. speaker paul ryan blamed partisan politics for the said he was armed he was forces were being put at risk as a result. >> the only reason w

mr. powell this morning, so i will carry on the message.the many entities that examines for cybersecurity there is zero harm onization between the agencies the result is that financial firms spend thousands of hours complying with regulations rather than actually froektiprog systems and customers. do you see this as a problem >> i think cybersecurity overall is one of the really significant threats. and we can never feel like we've done enough to deal with it. we try to harmonnize through the soup advisory guidance on what we expect from firms on cybersecurity issues and data safety and that kind of thing. i'm sure we can do a better job and committed to trying. >> i know that's an issue that financial institutions in particular sort of write in the cross hairs of this because the amount of personal data that they hold and the risk that is there. they're an easy target so we want to make sure that we work on that issue and work with you. you know, you are in a position where can you harmonize the rules and regulations i think easily with th

mr. powell, for being here welcome. some of my colleagues have talked about how we are where we are, the economy is getting better we all agree with. that we'll disagree on why and how. i personally think that a lot of the goods we're seeing today is a result of the actions we took several years ago to stabilize, secure, and improve the economy. it is now working its way through the system but i'll leave that debate for another day. i also want to associate myself with the comments made by mr. meeks. i would encourage you as well to keep a close eye on the cra. i also want to take that and expand it a little bit, just a little bit more. i presume that the fed would not be interested in a economy that just worked for wall street and did not work for main street i assume that the fed would not be interested in a economy that just worked for texas and didn't work for new york. therefore, i presume that the fed has some degree of interest in not in perfect equity but at least some equitial distribution of the benefits of a

yes exactly investors were closely monitoring the words of mr powell the new head off the fed even though he has been working for a long time the fed already under the leadership of his previous hazar janet yellen we don't still know really too much in which direction he will be leading the fed yesterday's investors told me that even though the u.s. economy is booming that it's going to be a rather slow process for interest rate hikes in the united states but yeah he was very clear and many investors interpreted his worth that we might see three possible even four interest rate hikes of this year rumors about higher interest rates have created some chaos lately already at stock markets all around the world i get the feeling that investors don't like interest rates in frankfurt thank you so much for this. now the looming breaks it's a struggle for a common foreign policy and persisting economic inequality the european union has numerous internal struggles to deal with but nevertheless countries still want to join the block the head of the european commission junk load younker is currently

well remember that mr powell has been already working for quite some time at the fed he was in gov position there and he has been mainly following also janet yellen was doing he was always in favor of higher interest rates so people here are thinking that he will be doing this as well we might see up to three maybe even four interest rate hikes this year there was just one of a situation that is very that is seen very different by him he is more in favor of more regulating when it comes for example to banks but it's going to be very interesting to see how the monetary situation in the united states will be going and maybe even changing this year. been trying for thank you despite all the doomsayers were predicting the eurozone economy is doing quite well expanded at its fastest rate in a decade in twenty seventeen completing three years of consistent growth accordingly despite a slight dip from a seventeen year peak business sentiment also remains high it looks like it's going to be a good year but there still are risks. the economy of the nineteen member single currency union posted its hi

just a few days before she was leaving office she didn't want higher interest rates but we know mr powell will be sworn into office today as the new hat off the fact he has been working there already for quite some time in the board of governors and he was mostly in favor of janet yellen decisions and we know that she was also in favor of higher interest rates maybe three or four times this year so yeah we might see those interest drop interest rate hikes happening this year. it was a real slump we saw her on markets in new york on friday. the market sliding in asia and in europe as well but not to the extent we saw in new york why is that. yeah a major correction you mention it i mean the biggest correction that we have seen in two years and actually because of surprising reasons because on friday we got those unemployment reports from the united states very good numbers also the report that wages were going up so you might be thinking well that's good news it is on the one hand but on the other hand this means in many cases higher interest rates higher interest rates for the market mean

but mr powell will have to navigate through uncertainties caused by the tax bill, and america's latestncements, to ensure that the index stays in the green, and people here remain happy. another extremely busy week for corporate earnings. in under an hour we will have the world's biggest airline reporting its latest set of financial results. the company is expected to post sales of $1.7 billion in the last three months of 2017. that is a 5% increase on this time last year. european airlines are still grappling with overcapacity in the market. but the bankruptcies of monarch, air berlin and alitalia have already helped ryanair to post a 6% rise in passengers numbers injanuary. at present, carriers are free to fly between european union member states, but airlines have called for greater clarity on what will happen when the uk leaves the eu next march. ryanair has already added a brexit clause to some of its tickets. this will provide customers with a refund if flights are cancelled due to a change in regulations. ryanair has recently taken the decision to recognise the british pilots‘ u

mr. powell, congressman james french hill. was more confident in inflation and you and your questioning were more emphatic, calling it a fee that actually takes from the paychecks of americans. did you come out of these hearings more confident that inflation will remain under control? congressman hill: growth is not incompatible with low inflation. this is one of the economic myths. i think the fed should stay andsed on stable prices, their 2% target is certainly adequate. chairmanconfidence powell stay focused on that because inflation is the biggest thief for working people across the world. david: as we create more goods and pay people more money, the thing that people will keep us from inflation is increased productivity. how confident are you that we will get that the greek of increased productivity. let's be honest, over the last 20 years we haven't had. representative hill: i agree, its one of the biggest challenges we have in one of the biggest economic challenges german powell is inheriting in his new job. at the feat

mr. powell did a good job telecasting potential moves. train to that growth coming good things he talked about and does it lead to inflation powell was asked about that yesterday. here's what he said yesterday. waiting. if we don't have that -- here we go. >> we've been getting up to 2% but generally speaking inflation has been low and stable for 15 or 20 years now. train to the point that it's been stable getting up to 2%. what's your view on that? there are differing views among the economists and people on wall street that maybe we can handle a little bit more than that. >> i think we can. the last inflation number was to .1%. so is significantly below the target of 2%. companies reporting from whirlpool to tyson foods to cisco to ford. so many companies are porting they are hurting their bottom line because of the quantity inflation. oil prices are up 50% in the past year. inflation has been there. i don't think it's anything new to the market. >> of his thoughts on how you're handling this. talking about more later on in the hour abou

mr. powell will say. this is how stocks are three gondwana.bout one part 1%. we are going to tell you where you can celebrate the market rally for some free pancakes. "fbn:am" starts right now. lauren: just after 5:38 a.m. i'm lauren simonetti. lea: good morning. i am lea gabrielle. happy national pancake day to you. lauren: is tomorrow? every day is something day. lea: maybe waffle day. in response to the florida school shooting, he said he would run as a children either the pentagon. the bold statement as called for the broward county sheriff to resign. following the story live from washington d.c. more on this group needs surrounding the first responders in this terrible shooting. good morning. >> good morning. there is a lot of scrutiny going on. the way the deputies performed was a disgrace, disgusting in fact is how he described a paid the the actions of the shared deputies who stayed outside of the stone and douglas school while and douglas school while inside a guy name is on a rampage killing 17 students and teachers. the president ex

mr. powell do in terms of bond market? bit of skittishness in the european bond market at what happens with italy? do you want to take core risk is to mark -- core risk? bloomberg tv go and look at that interview from yesterday morning. let me get you a little bit of results. we've got gkn what comes to supplying the big winemakers, boeing -- big playmakers, boeing. this is what they are telling us. miss.billion, that was a you begin to understand the reason why you have this hostile bid by melrose. -- they wantbuild to bid seven and a quarter billion. love the line from the ceo there. none of this is rocket science. i know a thing or two about rocket science. gkn, aerospace of state. sales at a dividend at 9.3 pence. 160e are set to deliver billion pounds, 3.4% above the estimate. details of the strategy to generate value for decades to come. that is the ambition. will she be able to do that? the biggest hostile takeover in the united kingdom in a decade. juliette saly has a first word news. juliette: manus, the european

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mr. powell serves a the chairman of the federal open market committee. prior to his appointment to the board, chairman powell was a visiting scholar at the bipartisan policy center and a partner of the carlisle group. as a secretary and undersecretary under george bush. he worked as an attorney and investment banker in new york. he received an ab in politics in princeton and a law degree from georgetown where he was the editor in chief at the george down law journal. his statement will be made part of the record and welcome and you are recognized to give an oral presentation of your testimony. >> thank you very much, mr. chairman. >> you're going to have to hit the microphone. >> thank you and thank you ranking member and members of the committee. i'm pleased to present the semireserve semiannual monetary report to the congress. on my first appearance as the chairman of the federal reserve. i want to express my appreciation for chair, janet yell skpn her important contributions. the economy continued to strengthen and policymakers normalize the level of i

mr. powell says his outlook on the u.s. economy has strengthened since president trump's tax cuts. what does that mean for interest rates? they may move a little higher. i think we can take it. we'll talk to dennis gartman straight ahead. white house communication director hope hicks, hearing on capitol hill taking questions from the house intelligence committee as part of their investigation into russia's meddling or perceived meddling. here is the thing, everyone. this investigation has not come up with any hard evidence of any collusion of the trump campaign working with the russians. so is the president right, when he says this is nothing but one big, giant witch-hunt? we are on it. but first, let's go back to the top story. fed chair jerome powell, in his first testimony there as fed chair on capitol hill, is indicating some good things ahead. those tax cuts are working. maybe wages go up. maybe that means the fed has to be more aggressive. our own adam shapiro is following it right now. he has the latest. hey, adam. reporter: trish, he talked about the economy. he talked abou

mr. powell to navigate? it will bring the congressional testimony from the new fed chairman.oldman sachs has an interesting play this morning as well, in terms of doing their worst-case scenario, the disaster recover scenario, in the market. and theyds hit 4.25%, would see the stock market dropped by 25%, but no recession. a couple big interviews on "daybreak." we will be speaking to the deutsche telekom ceo. he joins the show at 6:30 a.m. u.k. time. let's get to juliette saly. she is standing by with the first word news. juliette: manus, china is describing terms to allow xi jingping to rule beyond the 2023. a current law bars the current president for serving longer, but the communist party wants to change it. there's a wave of reaction on social media in china. some comments were supportive, others were critical and mocking. hash korea's kim jong-un indicated he may be willing to hold talks with the u.s., but the white house says it will see if the move represents the first denuclearization. it comes after north korean delegates attended the closing ceremony of the winter

mr. powell on that. >> time of the gentleman has expireded. the chair recognized the gentlelady from ohio >> thank you, chairman certainly as one would expect with you being the chair of the federal reserve that the questions would be centered around economic projections. economic developments. financial stability. monitory policy. but i'm going to keep in my true form of asking you the same question i've asked everyone who has sat in that seat are you familiar with section 342 of dodd-frank? >> yes, ma'am, i am. >> with that, the office of minority and women inclusion can you tell me in your short-term, which i recognize, but you also have almost a half decade of being chairman of that board tell me what you're proud about what's under your leadership >> so a couple of things first, as i mentioneded, i've been involved in my seventh reserve bank presidential search in every case, we've been able to expand the universe of diverse candidates and select diverse candidates i'm proud of that. i think the reserve banks do a good job, by the way, on

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at all that's why we are really seeing those shares here dropping at the market very interesting mr powell usually when you have a new head of the fed there economist he is a lawyer he has been with ms yellen for a long time so yeah it's going to be very interesting what his monetary strategy will be. frankfurt thank you very much. and stay in the u.s. where president donald trump has promised to revive america's steel industry by curbing imports from china that's what people in the so-called rust belt states traditional strong and heavy industries have voted for him i must expect donald trump to issue an executive order to that effect this week sweeping import bans would have companies elsewhere in the world a lot more than chinese steel produces. u.s. president donald trump signing an executive order one of his favorite ways to get things done one executive order he'd like to issue would restrict the import of foreign steel to labor american steel industry has been in sad shape for two decades dozens of steel plants have shut down at the cost of almost fifty thousand jobs at the same tim

well remember that mr powell has been already working for quite some time at the fed he was in gov position there and he has been mainly following what also janet yellen was doing he was always in favor of higher interest rates so people here are thinking that he will be doing this as well we might see up to three maybe even four interest rate hikes this year there was just one of a situation that is very that is seen very different by him he is more in favor of more regulating when it comes for example to banks but yeah it's going to be very interesting to see how the monetary situation in the united states will be going and maybe even changing this year. trying to thank you for the spot where all the doomsayers was predicting the eurozone economy expanded and it's fast as frightening and in a decade in twenty seventeen completing three years of consistent growth accordingly despite a slight dip from a seventeen year peak business sentiment also remains high it looks like it's going to be a good year but they're still wrists. the economy of the nineteen member single currency union posted

mr. powell. i think he'll do a fine job. more moderate in his policies.etheless, i think the fed raise rates four times this year, probably 25 bases points each time. i hope that we don't move the fed too much and move curve to an inversion. certainly we'll take it at least bases points higher. that suddenly makes bonds at the of the curve an investment vehicle, and the competitive with equities prices. i think we have problems here. >> all right. itlly quick questions, but does have too parts. how high is the 10-year yield, high is it going to go? and what are you buying now, if stocks?ld get out of >> first of all, i think you should be reducing your position in stocks rather dramatically. buy,hing i would commodities. i think commodity prices in in balance, compared to equities prices, are ridiculously inexpensive. if i could only buy one thing, probably be a buyer of wheat. i know that's hard for most people but there are etf's that let you put that trade into effect. and how far do i think the 10-year can go? you and i both, we're from the old days i

mr. powell's testimony is he did in fact make a lot of more personal statements than chairman yellen would a personal basis it looks like we have risk, it just seems the output gap is largely closed so it's really a grand experiment this year when you overlay really a heavy dose of fiscal stimulus on top of an economy for which you have unemployment near 60-year lows it just suggests that odds are we should have a greater pickup of inflation later on this year, which would suggest probably more pressure to the upside for interest rates, which again, would probably really bode well for, you know, cyclical value stocks >> was it about a certain group of investors locked into some weird volatility instruments >> you know, i think we went through a really, really odd period preceding february. we went through a year with zero volatility, that was really unusual. i didn't look at february as that dramatic. there was the aspect but if you go six months, 12 months from now people won't remember this as a dramatic event. i think the market felt more pain in early 2016 people worried about a recess

mr. powell. i'm starting to put together a narrative here that we have a different person here.e's the first person who is not an economist. he's investment banker by background and also an industrialist. when he was at carlisle, he ran the industrial group. as a consequence, he was actually running the whole load of u.s. companies. the little bit speculating here, but i'm starting to feel that he is going to be a different personality in a different direction of travel to the previous three fed chairman. howa: how would that change you would advise clients to invest in u.s. assets whether bonds or equities? stephen: i'm taking a very cautious view here. most equities, particularly u.s., are expensive by any measure. maybe there was a momentum trade through 2017. unless we see fresh highs in the market in the next couple weeks, and other words it really gather steam, i'm saying very clearly hear there's an awful lot of reasons to say these are spence of assets. -- expensive assets. they may come from the ecb and the bank of england where carney will also go next year. in that en

mr. powell this week, given how it seems to be >> well, the interest in it is very much about continuitynd there's been an improvement in the growth and inflation backdrop in the u.s. and we've seen many economists upgrade their forecasts with the fed hikes this year and next year we'll see if there's any validation of that >> and you say the analysts have caught up with what's happening in market development. actually, when you look at this, it's kind of been hovering for a while. why do you think >> i think there was obviously a big level. we did get there very quickly. and it's in line with where the fed's long-term thought is and now looking at the market, and the data hasn't been uniformly positive we expect that to be a bit of a waning in the momentum of inflation. >> where you stand, would you be a buyer, and think it's a right time again >> yes, we also have bond duration in u.s. and canada. >> obviously, there's been a lot of focus on what it does to your yields and with the two-year yields, but then other people are saying if they hike too quickly, that could be actually a bad

mr. powell that's the important question at the moment we're in a transition from janet yellen to powell it's no coincidence ma the markets had a wobble during this transition when grown greealan greenspan ah '87 crash happened soon after. ben bernanke, quite soon after there was a financial crisis >> can i throw the boj into that the p where i'm based in singapore, people are saying they could be the sleeper risk data is looking constructive they're slowly nudging closer towards 2% they have to be careful how they communicate, but how close is the boj to qt? >> that would be the unexpected development. that probably makes it the most likely development you're right that the japanese economy is picking up pace we are edging back to a sustainable inflation situation. so, yes, that's a possibility of course >> it's a risk that if they go a little bit too far in terms of messaging, given all the etfs underlying the nikkei and topix, and that that could cause an overshoot in the yen, that he have to be careful how they communicate. >> of course they do the japanese stock market has risen ext

mr. dollar at the moment? powell,sten to jerome president trump?emy: notionally you would expect that power to reside in the u.s. treasury. much thebeen very mantra. going back to rubin in the mid-1990's. davosw shins comments in -- steven mnuchin and's comments in davos were matted down. even if they were consistent with the policy aims. ultimately, i think we are looking at the u.s. treasury being mindful. anna: jeremy, thank you very much. getting your friday morning started here on bloomberg. you have to switch off bloomberg television, you can find the bloomberg radio live on your device or on your digital radio in the london area. , upheaval at anbang. chinese government seizes the insurance company and will charge the founder with a alleged fraud. we had to beijing. and japanese inflation stalled highlighting the challenge ahead for corrode as he prepares for another term at the boj. this is bloomberg. ♪ anna: good morning from london. six: 18. stormy skies above singapore. that is not going to lift anyone's friday mood. us get a bloomberg b

mr. powell. he has a very important testimony next week.f he leans dovish, she has used all the dovish soft dollar gas in the tank. the serpent in the market, the beast in the market, is expecting him to be hawkish. if he leans dovish, you are going to get a weaker dollar, weaker commodities that global growth feeds back to the u.s. and gets you higher rates. it is a real problem for the fed. janet yellen has essentially used all the weak dollar gas in the tank >> larry, one of the things we talked about on wednesday was the idea we saw a market movement that a lot of people weren't expecting. we saw inflation data slightly hotter than expected stock futures were up. they sold off. they rallied back and closed higher positioning wise, i have been go yo your rates, how are you advising clients? >> commodities are going to destroy stocks over the next year etfs like the natural gas, agriculture commodities, stocks like mosaic, if you look back in history, when you have large deficits at the same time a weakening dollar and higher yield, those

mr. powell makes his testimony at humphrey hawkins all eyes will be on that we'll get durable goods orders signals pointing to a slightly weaker open. dow jones down 3 points, a day after it was up 400. >>> while samsung's unveiling of the galaxy s9 grab headlines at mobile world congress, the rise of 5g is on the rise i'm happy to say ar yun is back with us on the show. what can you tell us there >> 5g is undoubtedly the biggest topic here at mobile world congress i have a perfect guest to talk about that the ceo of affirm networks hasan, talk to me about the type around 5g. what is the promise of this technology >> 5g is doing something that networks have not been able to do before. it's going to bring you fiber-like speeds to your handset. the biggest thing it does is enable a bunch of capabilities that we have not been able to do previously bring very low latency services, like vehicle to vehicle communication, virtual reality, augmented reality. you saw around the olympics a lot of this capability, looking at different angles, overlays, enjoying entertainment >> for you, what are some

mr. powell i am sure will get those questions from the politicians as well.hould we be watching in china markets today? mark: we will be looking to see whether the funds that have been flowing will still increase or whether retailer -- retail investors are too shocked and just want to get out of the market. betty: stay for a moment, i want to bring in a guest from sydney, the chief market strategist, mike mccarthy. you are looking at this correction we have seen in the they could saying, become a market disaster in 2018. why? i think -- betty: go ahead, mike. mike: sorry. yes, certainly there are concerns. we saw three different principles. one is an endogenous market event, that is a panic. the potential for panic is always there in markets. but the call mean for markets overnight shows less chance of that happening. we are seeing a fairly rational response to friday's session. that does not mean the markets cannot go lower, they likely will. the reality is, the pullback we have seen in valuations and the pressure that was putting on markets, it would in fac

mr. powell could tip the balance that way. think we are just pricing in three, which is already a big shift. a year ago the fed said three hikes in the market was only going to price at 1.5. so to be pricing in three is quite a big change for the markets anyway. four would be another big jump. five is almost out of the question. guy: it's a long way. we also get draghi. the momentum around europe is quite interesting at the moment. does draghi need to win the market back? does he need to put a more realistic spin on this? defense seems to be that the ecb is looking at the exit. i'm not entirely sure that is what's going on in frankfurt right now. >> i think you are right. i think there's another opportunity for the man who's is the head of the central bank to rain everything in and take the middle-of-the-road approach. sort's obviously some cour of discord, people are turning hawkish in the ecb. mr. draghi will probably say, look, let's be realistic. there's a long way to go on this process. we have outlined a bond purchase pl

mr. powell in charge of the fed.in his opinion come has changed since december -- opinion, has changed since december. this is the agenda. it is about michelle barnier. they are expected to adopt the withdrawal text, which will be published. we've got europewide inflation data for february. will we be under 1%? it is fourth-quarter gdp out of the united states of america. consumers are as confident as they have been since the year 2000. -- that wasld goat a while ago. here's juliette saly with your business flash. bayer said that it expects to close its deal for months and so -- monsanto later this year. the company thinks that the deal will probably be completed in the second quarter. farming a portfolio of vegetable sees has emerged -- seeds has emerged. u.s. commerce department has slapped duties on aluminum foil from china after concluding that the country's producers are receiving unfair subsidies and dumping the products in the american market. on duties will be imposed chinese aluminum foil for selling the pro

mr. powell will be the end of the month, february 28th, art, melissa, doug, thank you so much for bearingh us this morning and covering the breaking news with us, thank you. >> any time. cheryl: once again the breaking news happening in just the last few moments, the house has approved that budget deal handed to them by the senate, the next step goes to the president's desk for him to sign, it's expected to happen, of course, this morning, the vote was 240 to 186, again, the house has passed, we got a statement from house speaker ryan saying, quote, this was a great victory for our military, so, again, the second government shutdown of 2018 is now over, well, it's going to be over in the next couple three hours, five hours 40 minutes. lauren: as griff said, if you work in the government, get in the shower, you are working today and the president is expected to sign the bill as soon as possible. cheryl: we have a lot more coming up. we were talking about the markets obviously this morning but oil prices sinking to 7-year low overnight, how is that connected to the global stock selloff? we

mr. powell, who is closer to the republicans and closer to the president than before.y guess is you will see a federal reserve accommodating, like everybody else, this directly tory shift wealth to the top mindset. unfortunately, where ms. janet yellen might have been a break, this is full speed ahead in a direction i think is theirs asterisk -- is disastrous. amy: how has trumped sold it to the american people, even if unsuccessfuln times. what is the note he has struck in, as you see it, a duping? >> it goes back to power. in fact, promises were made to the american people and the obama administration to bring hope, to bring change, and there was not much of any. i think it turned a large number of people off, and they were discontented and turning away from politics. and there is a kind of anger and rage against what is happening, and mr. trump has tapped into that. and he keeps playing on it -- i am the not a boy, the different one, and i am going to do what others feared to do. it is the it appeared he has actually got in the opposite direction. but this in list t

mr. powell was well it could be four. the good use is we were up 100 yesterday, down 300 today.olatility is moving all over the place. but we are seeing this before we have gotten into march if anything else, you are giving us transparency that the fed has been giving us for years. >> it is good to get it out of the way in terms of the poe telegraphing of this potential move. >> but he might be for it. but there is a whole bunch of other people in the room that have to decide. >> i don't think it is the rate hikes. it's why he said it. steve said it in miss commentary it's because he was concerned about fiscal policy. right? he was concerned that we are going to get this big stimulus while the economy is already growing. so that's what i think the market is pricing in, saying you know what, you are throwing kerosene on a fire here and the fed's not going to have react on extra time 25 basis points doesn't matter the market is saying, when this thing really accelerates and margins compress because you can't raise your prices or you get inflation and it's not working. so you have

mr. powell to move the market more than that.eantime, when we get back to this into banks, we will be doing a lot more later. let's get to abu dhabi. global leaders have gathered for the forum. erik schatzker is there. over to you. much.guy, thank you so mubarak.with good to see you. thank you for having us here. let me begin with the news of the day. one of your largest investments, emirates global aluminum among the largest aluminum purchases, but it results this morning. 60%.t is up he was what i would like to know, why is that such an important milestone? guest: this is a company that has a rich history. 40 years industrial champion from the uae. it is a company that is a result of a merger between emirates aluminum and dubai aluminum. this company is now the largest exporter outside of oil and gas in the united arab emirates. one of the largest employers in the uae 50% by the government of the by. left. the bond it is a partnership between abu dhabi and dubai. there was a history for this entity. it is a global player. it is

yes exactly investors were closely monitoring the words of mr powell the new head off the fed even though he has been working for a long time the fed already under the leadership of his previous hazar janet yellen we don't still know really too much in which direction he will be leading the fed yesterday's investors told me that even though the u.s. economy is booming that it's going to be a rather slow process for interest rate hikes in the united states but yet he was very clear and many investors interpreted his words that we might see three possible even four interest rate hikes this year rumors about high interest rates have created some chaos lately already at stock markets all around the world i get the feeling that investors don't like interest rates in france thank you so much for this. and there is good news for german homicide because jayanta by the european commission has dropped tens that it's proposed to take a well off u.s. rival months could get the go ahead after a weight off more than a year deal has been making regulators around the world pretty nervous. the u.s. food a