mr trump has already said that he is very unhappy with his toys as mr powell as the fed chairman —— with wonder what janet yellen is thinking, she's at home watching closely at imagine, i wonder what thinking. let's look at city am, eu olive branch is as city fears, what is the olive branch? the eu's response to regulation the bank of england has already implemented a few months ago for the case of a no—deal brexit scenario. the regulations saying that the current regulation, which means london based banks can trade in the eu will continue for a certain amount of time, about 12 months. business as usualfor a period of time. time, about 12 months. business as usual for a period of time. only a period of time, that is important, this is something the european commission hasn't aimed for, they would have wanted to settle this, not with a no deal contingency plan, but with something real in the settlement, concerns about... that trillions of derivatives contracts could be moved in a very short amount of time, and have now been found to be unfounded. but, as you said, it is something which is

mr. powell.ve the fed alone. >> schifrin: and i wondejust the time we have left, all of this talk, eveifn is here rhett cal is having a big impact on the markets, isn't it? >> it really, isust the idea dlingthe president is med in this is thinking about it, might do it has really unnerved financial markeen. the preshas said that he thinks the fed is the only thing that is causing consternation in financial markets. i have spokewith a lot of investors in recent days who turned that on its head and say you know w is causing problems in financial markets is president trump. sthe uncertainty that he creating is rapidly becoming the biggest challenge for the economy.if >> sn: and bin of "the new york times", thank you so much. my pleasure. binyamin appelbaum of "the new york times", thank you so much. >> schifrin: this fall, iraqis in the souern city of basra took to the streets to protest corrupt leaders and a lack of basic services. special correspondent jane ferguson traveled to basra, and in the f

blunders and i feel like mr powell is going to get fired amidst the downturn monday trump showed no signs of backing down tweeting in part the only problem our economy has is the fed they don't have a feel for the market they don't understand unnecessary trade wars or strong dollars or even democrat shutdowns over borders just recently powell tried to put a good face on the market volatility this is the best year since the financial crisis you have growth well above trend monday's sell off was also a fallout from treasury secretary steve minutia phone calls over the weekend to executives of america's top banks which was meant to assure them that the federal government was on solid footing but the unusual call only spooked the markets even more leaving many to wonder if there was something fundamentally wrong with the economy they weren't sharing the only good news on wall street perhaps. aps is that the market slide will stop at least on tuesday because that's when the stock exchange is closed for the christmas holiday but when it reopens again on wednesday all bets are off likely more wo

mr. powell, not even a little bit happy with my selection of jay and then there were rumors put out that he was angry at steve mnuchin, the treasury secretary, because it was mnuchin who had suggested jay powell. jay powell is not an economist. that actually was attractive about him for many people. and he begins to see exactly what he doesn't like because he really kind of cares a lot about the perception people have about the markets and how great they were in his first year, and now as they have started to fall which could be just a normal unrelated thing, he's almost setting somebody up to be blamed for that. what do you think about that, john, and is jay powell in any danger of losing his job? >> i don't think jay powell is in danger of losing his position at all. twice during the press conference, he did reaffirm the fed's independence and i think he is very sensitive to the markets and is looking at the marketplace in general, which goes back to your point, liz, that the markets sold off quite significantly and i think part of that may be prior to the fed meeting, there were some

mr. powell, the fed chair that he's had so much to say. any optimism or pessimism about that kind of a meeting? >> look, i will chime in here as the only person who used to work at the fed. i think it's more than past time, more than past due that the two gentlemen sit down together behind closed doors, no media, and just have a simple meeting of the minds. they are both extremely plain-spoken individuals. they both actually have the same kind of background. they understand markets. they understand the way interest rates work. they both have payrolls to deal with in their lives. david: you wouldn't know it from the way they're talking about each other now. >> well, only one of them. >> what i'm saying, it's time for them to get together without the media as a third party. >> that's fine to get together, but you have a little problem, and that is powell wants the rates to go up, trump does not want them to go up. when you have a head-to-head between the fed and the president, ultimately if the president presses the case, the president and t

blunders and i feel like mr powell is going to get fired amidst the downturn monday trump showed no signs of backing down tweeting in part the only problem our economy has is the fed they don't have a feel for the market they don't understand unnecessary trade wars or strong dollars or even democrat shutdowns over borders recently powell tried to put a good face on the market volatility this is the best year since the financial crisis you have growth well above trend monday's sell off was also a fallout from treasury secretary steve minutiae as phone calls over the weekend to executives of america's top banks which was meant to assure them that the federal government was on solid footing but the unusual call only spooked the markets even more leaving many to wonder if there was something fundamentally wrong with the economy they weren't sharing the only good news on wall street perhaps. this is that the market slide will stop at least on tuesday because that's when the stock exchange is closed for the christmas holiday but when it reopens again on wednesday all bets are off likely more wo

despite hand-picking him as the chairman a year ago it would require congressional approval to fire mr powell but the news was certainly enough to push down the markets even further and in a bid to reassure investors after one of the worst weeks in a decade the treasury minister made what many are calling emergency phone calls to the head so if the six largest banks we spoke with jeffrey tucker editorial director at the american institute for economic research who thinks in order to avoid a crisis u.s. trade policy among other issues should be significantly changed this is actually a very bearish sign about our economic prospects in the future and that's why people are talking about a coming recession the economy is still strong on paper if you look at the data is strong but the job of the stock market is not to read the existing data which is always about the past the job of the stock market is to anticipate the future that hasn't yet unfolded it hasn't done damage yet but but we're at a very critical moment right now things can change right now and we can reverse course so there's still tim

mr. powell for his role at the fed the roles -- the world's most important central bank. whether president trump tried to fire him will be a question of the independence of the bank, because it would stoke concerns that the president is trying to intervene. but this comes at a time when president trump had probably -- had probably -- had broadly been interfering in federal reserve policy, raising questions about the way it is conducting its policy interest rates. there was another increase just last week, the fourth this year. edpresident trump is conce that the federal reserve is raising interest rates too quickly and that that might have a negative impact on u.s. economic growth. it has been growing pretty steadily under his presidency and he is tryi to make political capital out of that. he has other concerns to worry about athe moment, not least the u.s.-china trade war from which he is trying to win. he is keen to make sure that there is nothing that stifles u.s. economic grow at all because if it i doecould reflect poorly on his presidency. ben: jonathan joseph ther

mr. powell did a really fine job. he said that we've arrived hat the bottom of the range for neutral which has been a long-term objective of the fed for the last three years and that they have achieved it it's the bottom of the range to be sure and they brought down the median range from 2.8 to 3 so they are almost finished, and i think, you know, what steve liesman was saying was right is that the market wanted to hear we're finished and he didn't say that because he doesn't know that they are finished so overall i think that mr. powell is taking a very sensible position and i don't think there was any incongruency between where my outlook is and his outlook is from the standpoint of the longer term they are basically finished the normalization process, and now they are getting back to old-fashioned monetary policy. >> except, paul, i wonder if the market reaction would have been less severe if we heard things like all options are on the table, including, you know, quantitative tightening and locking at the speed and

mr. powell. of the mark? -- did mr. powell fall short of the mark? think he was doing his job in delivering the message of the committee. thats a little surprising that message came as news to the market, really surprising to me. i think the fed has been clear if use the balance sheet as being on automatic pilot, and the shock will be in the short-term interest rate. carol: when you look at the economy, do you see that it is a strong enough for the fed to continue raising rates? narayana: you know, i think that the right way to frame it, carol, is maybe a little differently. which is, what are your goals, and are you going to be achieving those in a reasonable time horizon? goal continues's to be -- they continue to fall short on their inflation mandate. they -- it is going to take a couple years to get there. so what is the urgency to raise rates now when you are continuing to fall short of your inflation objectives? carol: nathan sheets, come in on that. do they have to raise rates with those inflation targets below that 2% mark? it is: as he says,

mr. powell, place would have the same difficult path, enough gaiting nearly a decade of zero rates.t powell in this position is yellen and bernanke. >> jerome powell has a terrible situation he's having to deal with, not one from his creation. one from the former fed chairman who engaged in an experiment of quantitative easing and zero interest rates. nobody has a roadmap here. it's a very complicated question. i don't think the fed is necessarily doing the right thing on relying on all the usual indicators, lagging indicators like gdp or unemployment rates as a way of making decisions going forward. but we are all in uncharted territory here. it would probably be useful if the president backed off, gave them some space politically to make some of these decisions without feeling pushed into it by the president. jon: thank you, kimberly. >> thank you. jon: coming up. jardiance asked: when it comes to managing your type 2 diabetes, what matters to you? step up to the stage here. feeling good about that? let's see- most of you say lower a1c. but only a few of you are thinking about you

mr. powell and company may have an issue with communications, the president.you think in the near future there's going to be a statement out saying we may ease off rates and concentrate only on the other tightening of close to 50 billion a month as they try to lead the market to pay attention to the balance sheet? is that possible, phil >> i think that's possible looks like they're going to hike again, as you said, do it in a dovish way say we're done trying to give market certainty instead of leaving markets hanging another month, but at the same time say we're doing this kind of tightening through the balance sheet. >> excellent phil, thank you for joining me today. i can't wait to speak to you when we do ultimately get a statement talking more about a balance sheet. david faber, back to you >> thank you very much, rick santelli >>> hey, david oracle stock popped at the open after last night's earnings, particularly on the guide, it settled down quite a bit since then we have the ceo, mark herd, coming up on "squawk alley." the future of technology investing

mr. powell, his own appointee, is providing to him.hisi do want to ask about treasury secretary mnuchin's secret meeting, emergency meeting i should say, with top u.s. financial regulators after hosting a call with executives from six major banks on sunday. you have him meeting with j.p. morgan chase, bank of america's brian moynihan, goldman sachs david solomon, morgan stanley, .ells fargo, citigroup what message did he convey to them and what about the meeting with the regulators? >> i think the basic plan here -- no one knows the details -- but most of us think this was not a leak. this was a letting us know that the government is busy fixing all of this. the hope is by promising everybody is on board to fix it, that the market will somehow come back. it is the easiest, simplest first step. the irony is, it did not play out very well because the mass of people sought for what it was, a ploy, an effort to verbally shore things up -- which makes you wonder about how bad it really is, having pretended there was no problem, having prete

mr. powell referenced tightening positions. you know, after the crisis we had a lot of leverage in 2008, and that shifted to the government's balance sheet and corporate balance sheet and it is a percentage of gdp, it is a very stressed market right now and that is one of the many years they should be looking at for financial stability. we will have a sere recession if they close down. >> thank you, sheila. the former head of the -- it is bouncing back a little bit, struggling to keep some momentum. this time i want to talk about syria and it started with the presidential tweet. trump said we have defeated isis in syria. my only reason for being there during the trump presidency. the department of defense did not agree with that. they released a statement after that saying the coalition has liberated the isis-held territory, but the mission with sooi isis is not over. joining me is kristin welker, the policy announcement seems to come out of nowhere, and it seems like they were caught off guard. >> that's right, let me read you

mr. powell, the previous day in my opinion during q and a did the most damage to the market seeming more the notion of the balance sheet. speak to that, why it is hard to calibrate how we drain it away >> you know, i think they have been much more specific about what they're trying to do. that's good. remember, the temper tantrum was a mess a few years ago, it is better than that i think automatic pilot is about the right way to put it, they're able to make adjustments as they want to going forward, so there's flexibility. most important, it is clear what they're doing. they made a big effort to be clear about it >> when it comes to the balance sheet, i rubbed shoulders with a lot of people that traded markets for four decades, and the notion that this is something never done before, especially on the scale we have seen globally, how do we know if we are proceeding correctly, whether it is a stencil, automatic pilot, whether it is more subjective. it is something, we're not sure of feedback loops. >> we haven't done this before it began with massive balance sheet expansion. we are in the

mr. powell will say.one man who was on the board of governors many years ago, this is what we ran through all the things we could get through this. he said it could be an opportunity for jay to confront his riddick and explain what the fed is doing. mohamed el-erian, a bloomberg opinion writer, was out over the weekend speaking to fox news, face the nation. he agrees with the president that maybe powell could learn to have a better feel for friends and indicate better. let's listen. >> is in the fed is understanding it needs to communicate better. these are two things in particular. one, they should be more sensitive to markets and what is happening outside. there is risk of spill backs. the president says get a better feel for what is going on. the president -- the fed needs to realize it cannot take and keep an important policy tool on automatic pilot, that he needs to be -- it needs to be more sensitive to what is happening. they are self-inflicted wounds. kathleen: that was mohamed el-erian. i have to

mr. powell in his statement regarding cross currency. little word ine a statement he made, signifying amongst other things, the growth that you tout, which i may add mr. neil was absolutely correct it did not begin with this administration, it has been on a glide path, and that path is getting ready to go in another direction. i would urge most of the citizens to hunker down. and to those in the ways and means committee, controlled by democrats, they're going to have to have a very delicate balance. largely for the reason that it leaves out a whole lot of. i also want to bring to the attention of this body into this that we are in an environment where disasters are going to continue. it is not based on any climate belief. i have argued for a number of years that after seeing japan did, knowing that they were going to have earthquakes, japan established a committee of their diet that dealt specifically with disasters. this particular congress needs to establish a committee that will deal with disasters, be they fires, floods, earthquakes,

mr. powell went away. they were checking to see how it is taking the s&p more than 20%.trangest thing is bare market does not create a crisis. our banks are liquid and well capitalized. this is not a financial crisis. this is a garden variety. >> it is an important point. the president has talked these markets down in a weird way. in september -- in august and september we were flying high. december has been grusome. it does not make a recession. >> no. i think the odds of a rescission are going up in 2019 or growth recession. it is growth than anyone would like. clearly if you look at modty markets, the price -- >> here is a message out there. >> yes. bond yields are falling fast. >> that is ten year sbos into a expansion. there are ways in which a recession can just be a recession ae recession as opposed to what we saw last time. >> a wide variety contributed to a financial crisis. you know, created near runs on banks. >> right. but it is worrisome if you think there will be a recession we don't want this kind of crazy talk about can i fire the head of the reserve? >>

mr. powell could have been a little bit more understanding of investors concerns. >> we appear at this pointo be headed toward our worst december in many decades, any chance you see at all for some kind of a turnaround before the end of the year? >> it had nothing to do with the economy, i got to tell you that. the economy is in good shape. what we are experiencing right now is what is called a buyers strike. there is so much uncertainty in the market where interest rates are going, where is the trade war with china going, what are long-term prospects for the market and the economy, as we talked about this lack of confidence in washington and mr. trump's administration, buyers are on the sideline and there is no more buying and in fact they are selling into it. >> once investors see more stability maybe they get back in the game. >>> i think you're right. >>> alright james mcbride merry christmas. >> thank you alex and merry christmas to you. >>> volunteers are taking in the last minute toy donations, how you can help with that toy drive tradition. >>> there are so many toothpastes out there

mr. powell but they have to get the policy right and the wall street journal editorial board very strongere's no sign of inflation breakdown and they say fed should pause and not hike tomorrow. >> well, i think they are absolutely right, there's really no sign of inflation and not only is there no sign of inflation in inflation data but when you look at the more leading data in terms of inflation there's no sign that inflation is going to heed up any time soon and with the decline with oil prices we will catch a break at least in first half of next year, plenty of time for the federal reserve to hike rates, if they don't hike now and take a pause and the company reaccelerates and credit spreads narrow, they can always raise the rates in 2019, there's plenty of time to do it. lauren: the other thing to consider is balance sheet and that's having more effect than higher interest rates, what's your thoughts on that? >> well, it is and i really am a little at odds with the statements that we hear from the fed that -- that, oh, it's having an impact but only the equivalent of maybe three eigh

mr. powell was very plain spoken i think he came out and wanted to tell people look, we're data dependent. i am not going to tell you one this year and none next year, i don't know that. but powell did bring up things like global trade, what the impact on the economy could be i wouldn't call it a powell put, but not far away from that >> i think it could be the key thing i'm going to keep my eye on now is crude you had a rally on the new agreement between saudi arabia and russia if crude rolls over, begins to sell off again, i think it will change the complexion of what we're looking at crude will be a factor in powell's decision also so i think december hike is locked in. they can't walk away from that, they'll look like they got bullied by the president, but hikes next year, i'm doubtful of them >> art, you mention being concerned if the dow gets too much below 200 after you said that, it dipped down i wonder about your analysis on this somewhat anemic, perhaps in the early hours rally, what does that say about either what the market is still concerned about or about whether there's mor

mr. powell, the chairman of the fed, says when he goes before reporters at the bottom of this hour, 2:30. now, all the tea leaf readers will pass the tone and fry to figure out what the fed is going to do in 2019. the economic data in the u.s. is starting to slow down a little bit. to the president's point, he was being very vocal on twitter, we know. why raise rates now? why raise borrowing costs? unemployment is historic low. employment is very tight right now. prices are stable. we see no signs of inflation. the two reasons that the fed could give for raising rates. so what he says at 2:30 will have a big impact on the markets today. >> what do you think he will say? >> i think the fed has -- knows what's going on. i think they will have a very dovish approach. they were very hawkish before, saying the economy is hot. everything is going well. we have to raise interest rates to match the heating-up economy. that is not the case now. i think jay powell recognizes that and i think the rate increases next year, there was talk of three more rake hikes of a quarter of a percent. maybe we wi

mr. powell raising rates and mr. trump firing back on twitter. >> it certainly would be positive if there could be a cease-fire in terms of the words between them. i think the fed is not going to give up. i don't think that powell is going to make any promises to president trump about policy. he shouldn't. i think he wouldn't. he has some understanding that it is not helpful to have trump every other day tweeting about the fed into the markets. and that would be helpful. >> leland: do any of the experts have a consensus? as they look at this, the traders on the floor, are they having sort of a generic feeling about how this is going? does it vary in terms of outlook? >> i don't know. everyone is also on vacation right now. i don't think that there is really a consensus. it is not likely that they will be a recession. forecasters are often -- they don't have a good track record of calling these things. so i don't know what that consensus is worth actually. i think you see it in the market action. a lack of certainty a

mr. powell could probably make a pretty good case that the fed is confident raising rates because the economy is strong and i think that is largely the result of president trump's policies. i think kevin hassett, you take his optimism seriously because you remember that capital expenditure boom happened basically exactly as the white house predicted it would as a result of the tax cut. i think it could be a productive discussion. basically the economy is pretty good. there is a lot of evidence that the fed should be raising rates off what is historically still a very low level. susan: so, liz, i told you what i thought was important. why don't you tell me what stood out to you in that conversation? >> look i think it is very good to have the administration try to be reassuring particularly on china because i think the whole anxiety in this market, let's face it if you trace it back two months ago it all started with the whole tariff issue. the fact that presumably was part of why china was slowing. then you had europe begin to slow which may or may not have anything to do with that but i thin

mr. powell because he was so darn bullish about the global growth at the beginning of october he couldn't say that he was too optd optimistic and now he needs to be more concerned about the downside than the upside the result is bad news for the economy and the stock market oh, and for you. sorry my friends, that's really all there is to it let's go to mark in ohio, mark. >> caller: yeah, jim, thank you for everything you do for us all us investors. >> thank you. >> caller: i greatly appreciate it. >> i have other forces against me that are more powerful than i am, but thank you. >> >> caller: we've been watching since 2000. you do a good job. i can't thank you enough. >> i need it today today was just -- i was steamed today. >> caller: i have a two-part question i'd like to ask you if that's okay. i've been following along with the canopy growth stock, and the tilray now getting involved with two other companies, i think it's novartis and enbev, would that be a good investment? >> not in this market. i thought the stock would be up 10 this market's it's barely up i like canopy. they've g

mr. powell himself at his news conference we'll have it all covered with an all-star lineup from d.c. floor of the new york stock exchange meantime let's go to futures now and dom chu. >>> thank you for that this is "futures now." the dollar under pressure ahead of the big fed decision. despite that move lower the dollar still trading near its highs of the year. how do you think the fed talk impacts the rally? >> it's in this wedge range that's going on with the chart if you look at the technicals that wedge is tightening up on the high side. 96 on the low side when we get a fed decision this afternoon that will start to break out from the wedge formation and move one way or the other. they'll take steps going forward if they're going to ease off the pedal on rate hikes or one or two more in 2019 f. we have a couple more rate hikes the dollar probably goes to 100. or we fall down to 92 or 93. that's when we get the big exporters, the ones that rely on the dow jones and the s&p 500, they will benefit. >> anthony, brian just mentioned some levels. what levels are you watching >> i have

mr. powell that's is something -- i embraced that. that tells me they are truly to be. >> data dependent. >> not on the quantitative tightening that got me concerned process. to steve liesman's point that's the pushback i heard when we talked about it in october factored in. everyone knew it was $50 billion come off the market sheet and the market doesn't know until it knows. 600 billion equates to 75% of the fed's balance sheet from 2007 but put it in proportion. >> in october. >> in october. >> the view a different now versus two three months ago. >> the view is dramatically different. i think that's what the market -- why the market reacted as it did. look at the news over the last several months including and up to fedex saying the global economy is slowing we have almost every single pmi rolling over inflation expectations diving to lows we haven't seen in a long time a slowing global economy and the fed is saying the economy is strong tapped it back from 3 to 20 but no acknowledgement what so far and seemed tone deaf that the ec

mr. powell -- that is what he is focusing on. he has taken a lot of flack from donald trump and in a sense he is resisting. another u.s. political question -- i am genuinely confused about this shutdown situation. it seems the president wants congress to pay for the wall on mexico and i feel like he said mexico was going to pay for that repeatedly but i may not be remembering correctly his campaign promises. the question of the day which is related. how best do you trade the u.s. shutdown situation? stephen: i think it will be resolved. we have been here quite a few times. not just with donald trump but also with previous administrations. there is a lot of jockeying going on. a new congress is coming in in january. some sparring with people establishing positions. i am not too worried. let us be clear -- the donald does not care about a deficit. the fact that the supposed debt ceiling is at the egregious levels is not something this administration is worrying about. other parts of the republican party, the older parts, the tea pa

mr. powell. charles: i got to tell you something i agree with you 1000%.he coverage is bias and dangerous and damaging. let me bring in jonas. he has a trade in this environment. he has to make investment decisions in the environment. >> first of all i would like to say, look, you can make the case that investors are getting scared by the coverage but, most consumers don't read business news, bottom line. they're very happy -- charles: but they read newspapers and read headlines. every headline is negative. >> "usa today." >> consumer confidence level wouldn't be so high. they're optimistic. economy is good. charles: expectations part is down pretty much. >> a lot. right. forward-looking indicators are very poor. >> multiyear highs. last time the numbers looked this good was in 2000, also a very time before the bottom fell out. that is really what investors are concerned about. the consumer doesn't really know until it is too late basically. investors are piling out -- reason we have the trillion dollar seesaw going back every day, there is two big warning

mr. powell would he delighted i am in agreement with him. we think that two hikes is about right for next year, the economy in the first half of the year will be strong enough to justify further hikes. and it is getting back to neutral and beyond that there will be a softening in the economy, that will go on hold, the outlook for 18 months depends on so many things from trade to the economic fundamentals, who knows after that? nejra: why do you think they are on the right course given that your growth forecast is below consensus for the u.s. and what about inflation, that justify the path they are on? look at that drop lower. lawrence: what the markets are telling you is it is close to saying that the fed has overdone it already. let's remember where we are and where we come from, this is from four central banks, where we are coming from his we had above trend growth, we had the economy at full capacity, the labor market is tight as a drum, and yet, policy, the setting is somewhere near accommodative. if you do not do anything, what do you d

mr. powell, but here it goes i told you so. with that in mind, what do we have coming up let's look at the game plans, not get too nervous about what's going to happen because we're not going to go into recession e-commerce has become one of the most volatile areas in the market i'm always trying to get a feel for it why? because it's a huge driver of the new economy. ulta and lululemon reported quarters that were disappointed, but they reported on a day where the market wasn't bad. we also care about what i call the subscription economy where you sign up for something online that generates recurring revenue for the company in question, whether we're talking software or newspapers or nutritional supplements. so let's hear what stitchfix has to say i kind of like it, a real good barometer. this company has an online subscription base personal shopper business that specializes in apparel it crashed into a retaining wall 60 miles per hour the last time it reported. the stock lost a third of its value in the same day. tuesday, afte

mr. powell is trying to be responsible and saying we cannot continue on the sugar high of cheap money thatt has been feeding itself offer ten years, we cannot keep this unprecedented low rate, and that is making this incredibly bumpy for the market. reacting to the fact that they called bankers, but calling the head of banks all the time, that is terrifically within the mandate, and not reacting to the phone calls, but the fact that they have been reiterated by the treasury secretary that they will not get cheap money and that there are rate rises. they are saying that the economy can withstand this. but maybe perhaps it was a communications error, but no matter who is president because of the fed for the past ten years, that's why we will have a bumpy market. >> i was not saying that the trump administration is responsible for the plunge in the market. >> a lot of people are. >> presidents get too much credit when there is a bull market and too much blame when it goes south. to speak of has enjoyed taking credit for the market doing well, and i admire the president coming out and saying,

mr. powell today and his statement regarding cross current. that's one of the buzz words, a statement that he made signifying among other things that the growth that you tout, which i might add, mr. neal is absolutely correct, it didn't begin with the present administration. it has been on a glide path and that glide path is getting ready to go in another direction, and so i would urge most of the citizenry to hunker down and it will be critically important, what mr. neal and the ways and means committee that are going to be controlled by democrats, they're going to have to have a very delicate balance going forward to do what we can. this particular measure is troubling, and i would hope that it wouldn't even pass if it did come to the floor tomorrow. or largely for the reason that it leaves out a whole lot of people, particularly those that have disasters. i'm going to try again next year to bring to the attention of this body and this country that we're in a -- an environment where disasters are going to continue and it is not based on any c

blunders and i feel like mr powell is going to get fired amidst the downturn monday trump showed no signs of backing down tweeting in part the only problem our economy has is the fed they don't have a feel for the market they don't understand unnecessary trade wars or strong dollars or even democrat shutdowns over borders just recently powell tried to put a good face on the market volatility this is the best year since the financial crisis you have growth well above trend monday's sell off was also a fallout from treasury secretary steve minutiae as phone calls over the weekend to executives of america's top banks which was meant to assure them that the federal government was on solid footing but the unusual call only spooked the markets even more leaving many to wonder if there was something fundamentally wrong with the economy they weren't sharing the only good news on wall street perhaps. this is that the market slide will stop at least on tuesday because that's when the stock exchange is closed for the christmas holiday but when it reopens again on wednesday all bets are off likely mo

and i feel like mr powell is going to get fired amidst the downturn monday trump showed no signs of backing down tweeting in part the only problem our economy has is the fed they don't have a feel for the market they don't understand unnecessary trade wars or strong dollars or even democrat shutdowns over borders just recently powell tried to put a good face on the market volatility this is the best year since the financial crisis you have growth well above trend monday's sell off was also a fallout from treasury secretary steve minutia phone calls over the weekend to executives of america's top banks which was meant to assure them that the federal government was on solid footing but the unusual call only spooked the markets even more leaving many to wonder if there was something fundamentally wrong with the economy they weren't sharing the only good news on wall street for her. is that the market slide will stop at least on tuesday because that's when the stock exchange is closed for the christmas holiday but when it reopens again on wednesday all bets are off likely more worries of what's

mr. powell is a businessman. i think he looks at it as a businessman rask -- risk.k he is doing the responsible thing. the end of 2017, they were running at $2.1 trillion. global liquidity might be negative. we have this major liquidity withdrawal. it has been driving asset prices. jay powell probably wants to the avoid this. if he was to be pressured. if you look at the statistics of the economy, it needs higher rates. markets.y, emerging do not forget that to some , we had asset price inflation. most asset classes, according to bloomberg data, they are down for the year. the cello started for the rate hike. we saw the stock fall to multiyear lows. bloomberg showing that after falling to that low, they did not really go anywhere. they have actually done pretty well. does this signal that there could be momentum for stocks next year? >> that is a good question. it depends on the outlook for global growth. we could see more weakness for global growth. and a bigarket question in regards to investing is the role of the dollar. could we see continued dollar strength? de

mr. powell will be managing the perception, if they do go slow on rate hikes for economic reasons, he hasat he is doing it for economic reasons rather than being seen to bow to political pressure. rishaad: it backs him into a corner in some ways. reporting am ame colleagues running around, if you had to meet mr. trump in a meeting, that is not unusual. but the risk is whatever will come out of that meeting. rishaad: stick around with us. what are you making of all this? what is the path for the fed? >> we are incompletely uncharted here.ical path the outlook is that they will pause here. we have got to remember they do have a secondary tool, the balance sheet post qe. rishaad: but is it a danger? we saw how quantitative easing itself managed to lift up many asset prices and some of them ballooned. should the key be the router -- the reverse should be concerned about pressure to the downside? >> with the federal reserve liquidity -- the increase in the cost of capital will have the effect of having increase in the cost of capital. >> it was their plan to let things mature. thesehey can do

mr. powell's remarks.e'll have a news conference and cnbc will be live. >> yeah, we'll cover that wall to wall. >> all eyes. >> on the heeills of it what's going to happen >> you are good. you are making me laugh this morning. >> i used to cover homicides, there is a rhythm. you got the story and you have the after math, we'll have futures trade erratically for four hours i think we can be down and up 500. >> it is not about the move, it is the discussion of it after wars >> right >> this is actually mportant >> it is the most important day, i know you are going to say jim, that's hyperbole >> how big are you going here? >> 2018. >> no. >> oh, we got a bigger one >> or you want the super bowl. >> here is why i think is important. if he comes and start talking about, oh, that's a disaster we don't want to hear anything we are here and we are going to look at the data >> we did this >> because at the absolute top of the economy which he may have caused, he said things are the best he and brian cornell, the b

mr. powell, that's not something the president appears to agree with, guys. >> so is it that the criticismustified? is that the take >> i think the first thing is what -- how much the fed should take account for when it decides what the balance sheet is. is fiscal policy part of what the president should figure out? the second part is where should the fed look for this problem? if you don't see in the lending, does the fed's responsibility end there? does it have a further responsibility to think about what the impact would be in, for example, the equity markets out there if that tiegts ghtening ss up there we don't have banks complaining reserves are too hard to find and we don't have banks complaining that the balance sheet runoff is part of a reduction in lending because lending is going up. we haven't seen those problems we've also had a lot of balance sheet reduction and the market didn't seem to care until recentl recently. >> steve liesman, thanks very much for more on the selloff and the interplay with the fed and government, let's bring inrob martin maybe just weigh in on what we'

mr. powell faces a barrage of tweets. how does this all proceed in 2019?athleen: later, the top tech trends in 2019 from e-commerce to the new digital economy, all coming up on daybreak asia. this is bloomberg. ♪ david: welcome back. you're watching daybreak asia. i'm david ingles and hong kong. kathleen: and i'm kathleen hays in new york. jay powell's job may be safe for the moment but that doesn't mean president trump will start tweeting about rate hikes. what does this mean for markets? joining us is mark matthews. mark, you been watching central banks for a long time, certainly the federal reserve. donald trump opened this whole new venue that i don't think anybody has seen. what's going to happen next? do you think this is it? importantly, how big a factor, if any, does this have on the market? two people ignore this as a lot of noise? or is this something that's been weighing on you? mark: this fight between president trump and chairman powell, it really burned off the republican establishment. if there are envision procedures coming next year in the

mr. powell, say that he is really acting a lot like one of his predecessors, ben bernanke. how so? >> well under bernanke's tenure every time the market was went down he would lower rates or talk easier money. and i was hoping with this gentleman in in that would be a little bit different. he saw the markets getting hit. he came out with the noise last week, instead of raising a rate as few times in 2019 we're closer to neutral. market rallies up. we get hit with 1500 points two days. what happens yesterday? they put this thing out to the "wall street journal" maybe we'll stop this thing all together. i just don't want a central bank to be watching markets. they should be dealing with the economy. david: but it is very rare. forgive me for interrupting, very rare for a fed chair to do that? >> i know. david: we all think of a couple of examples where a couple of fed chairs stood up to what the market was doing. not many do. they all cave. >> think about this one thing? for eight years interest rates were 0%. that means savers were screwed out of maybe a trillion or two dollars. tha

mr. powell will be in a job a year from now, yes. >> is roger altman, thank you for weighing in. to have your insight. roger altman, former treasury secretary. "squawk on the street" continues after a quick break. >>> veteran market watchers say the current market is getting flashbacks to the 1980s. find out what that means on traigt tradingnation.cnbc.com more "squawk on the street" coming up. >>> let's get to rick santelli in chicago. >> hi, carl, thank you i'd like to welcome the deputy chief economist of goshe bank. thank you for joining me this morning. >> good morning. >> good morning. all right, here's theway i see it 2017 was really a wildeer for markets to the upside, globalized synchronized growth started to give way as we entered the third section of 2018 right after of the big january rally. next we know it's diverging. then we get a whole lot of market volatility. it's straight and now we go to must be a recession that has to follow do you agree that logic, brett if you do tell me why and if you don't tell me why. >> well, i don't think a slow down is being conflated

mr. powell, you obviously worked on not reauthorization, but authorization of faa and now you advise private clients on national security matters. i'm curious what you would say to a client if they ask you if title vii applies to data stored overseas. >> this is pro bono. >> are you asking whether 702 applies to data overseas? >> yes. >> so when i get a call at a baseball game from a client to interpret f-2 or fisa or what applies overseas, i typically say i'm at the game and i find that giving an off-the-cuff answer on something like that usually gets me in big trouble and hot water. so by its terms, of course, what 702 took off the table was to put the emphasis in a technology neutral manner to focus on the target of the surveillance. so as you know, everyone in the audience probably knows, of course, the issue was we were providing full fisa protection and fourth amendment type protections to non-u.s. persons located outside the united states. so what i would say as a general framework matter, of course, is that 702 took off the table essentially the location of the collection and put the

mr. powell, hard to argue the federal funds rate should be zero in real terms. he has come up slightly above that. historically it is still very low. this is a weird era we're in because of the huge expansion in the fed's balance sheet over the last decade or so. that's now come down about 400 billion from its height. it is, i think we're right to be paranoid about the fed given their history but i would say to the president, maybe he is realizeing things are pretty good. the economy's growing and got concerns about the future. the inflation is relatively moderate. the fed is raising rates as it probably should after era of near zero. blake: here is what "the wall street journal" editorial board said christmas eve in an op-ed that was published. said this quote, the fed is obligated to focus on the real economy rather than the stock market which has had a good, long run but market reaction to the fed's decision has been negative enough to warrant some soul-searching. some soul-searching needed there, james? >> well they certainly do pay attention to the data and