mr. powell: i do. increasedollen: if we the national debt, we are going to make those problems even worse. in other words, they long-term debt impact, harming economic growth, isn't that the case? sen. van hollen: -- mr. powell: i think the idea would be to get gdp growing faster than debt over a long period of time. sen. van hollen: seo any doubt in the congressional budget office's analysis of the debt increase that will result from the bill that is the proposed by republican senators? i haveell: to be honest not looked at that, it is not something we are responsible for. sen. van hollen: you have no reason to doubt those numbers. mr. powell: i have no reason to know those numbers, much less doubt them. sen. van hollen: you have no concern over the debt impact of decisions by the house or senate make? mr. powell: it is a bit of a fine line that we have to walk. i'm hoping i can walk it. clearly, the debt needs to be on a sustainable path. i think we all agree on that. on the other hand, it is not for

mr. powell: thank you, senator. chair crapo: senator menendez. governor, congratulations on your -- quote thank you mr. chairman -- sen. menendez: you noted the average hourly wages are rising only about 2.5% per year, slower than before the crisis, and while the nation has experienced the longest postwar economic expansion on record corporations have raked in record profits and many families in new jersey are waiting for a raise. some claim if we give them a tax cut, families will see their wages rise by an astounding $9,000. i have not seen any evidence that is credible. in fact, a 2016 federal reserve board study found there was no evidence that corporate tax cuts boost economic growth unless they are implemented in mid- recession. so in reality, with this comes down to is that hard-working families already squeezed with rising housing costs, education cause, medical costs are going to have to foot the bill for a bad deal. plan ining there is a which families making less than the new $5,000 a year would lose collectively more than $59 billion i

mr. powell: thank you. [applause] pres. trump: he is joined by his wife and his two sisters, and i say congratulations to you all. please, take that bow, you deserve it. thank you for being here. today is another important milestone on the past to restore economic opportunity for the american people. and just a short time, we have already made incredible strides. unemployment is at its lowest level in more than 16 years. you know that very well. you know that very well, you are happy about it. we have had back-to-back quarters of 3% growth, a major accomplishment, and we are doing better and better every, single week. but if we are to sustain all of this tremendous economic progress, our economy requires sound monetary policy and prudent oversight of our banking system. that is why we need strong, sound and steady leadership at the united states federal reserve. i have nominated jay, it is so important, he will provide exactly that type of leadership. he is strong, committed and smart. if he is confirmed by the senate, he w

mr. powell has consistently voted with ms. yellen slowly raise interest rates and fellow assets following the recession. colleagues consider him a centrist and pragmatist. the president announced the choice in the rose garden earlier today. pres. trump: thank you very much. please. i am pleased to welcome members of the cabinet, members of congress and distinguished guests to the white house rose garden this afternoon. also, i want to welcome the chairman of the senate banking committee, who has done an incredible job, mike crapo. great job, appreciate it. [applause] pres. trump: as president, there are few decisions more important than nominating leaders of integrity and good judgment to hold trusted positions in public office. few of those trusted positions are more important than the chairman of the federal reserve. accordingly, it is my pleasure and honor to announce my nomination of jerome powell to be the next chairman of the federal reserve. congratulations. mr. powell: thank you. [applause] pres. trump: he is joined by

mr. powell. >> thank you, senator. >> i'll take that as a yes. >> thank you. >> thank you. >> senator cortez masto, do you wish to -- >> i do. >> you will be our final question. >> governor powell, large banks have been find 160 billion since the crisis and recidivism continues and there's been a reluctance to impose harsher penalties and take a look at wells fargo which has a new scandal that arises every week do you view the post-crisis response on part of regulators towards the largest banks as being too harsh? >> well, i -- i guess i would -- i would regard the fact that we're still seeing things like what you referred to in the paper as very disturbing i don't think i would characterize our reaction to these kinds of problems as too harsh. i do think it's appropriate that we -- that we strike a professional tone in our supervision and regulation of financial institutions it and we always strive to do that, but, no, my main reaction to what you referred to is -- is one of concern that institutions are still having problems with bad behavior, bad conduct towards consumers. >> so can we th

mr. powell on your nomination. you know, both the immediate predecessors of the fed, chairman yellen and bernake testified before congressional committees about their concern and impact of the rising debt. national debt on the economy. here's what chairman bernake told the committee in june of 2001. he said, large deficits in debt over a long period of time raise interest rates above levels where they normally would be and crowd out private investment and are bad for growth and productivity. they also may involve borrowing from foreign lenders which is also a drain on current income. unquote. do you agree with chairman bernake statement? >> yes, i do. >> and here is what chairman yellen said this year on july 12th before the house committee on financial services expressing her concerns about rising debt. she said current spending and taxation decisions will lead to unsustainable debt situation with rising interest rates and declining investment in the united states that will further harm productivity growth and liv

mr. powell, on your nomination. you know, both your immediate predecessors of the fed, chairman yellen and chairman bernanke repeatedly testified before congressional committees about their concern, about the impact of the rising debt, national debt on the economy. here is what chairman bernanke told the joint economic committee in june of 2012. he said, large deficits and debt over a long period of time raise interest rates above levels this where they normally would be and crowd out private investment and are bad for growth and productivity. they also may involve borrowing from foreign lenders, which is also a drain on currently u.s. income, unquote. do you agree with chairman bernanke's statement? >> yes, i do. >> here is what chairman yellen said this year on july 12th before the house committee on financial services expressing her concerns about rising debt. she said, current spending and taxation decisions will lead to an unsustainable debt situation with rising interest rates and declining investment in the u

powell also pledged to ease red tape on banks will to mr powell thought us would face further moderatesiness news this morning. the financial times has a take on our top story — the eu probe into uber‘s big data breach. it says the incident has ramifications for us all. the wall streetjournal continues its focus on the situation in bali and the danger posed by mount agung. it's reporting how the closure of the island's airport is affecting the tourist industry. and bbc news has been speaking to avocado farmers in mexico. they're increasingly facing violence and intimidation from criminals trying to muscle in on their lucrative crop. that is a story that has a lot of attention on bbc online. and don't forget — let's us know what you are spotting online — use the hashtag #bbcthebriefing. a very brief look at financial markets. this week is a big one for the united states. it has everyone's attention. you can see the hang seng is down 1%. australia is also down. japan is bucking the trend with a wea ker japan is bucking the trend with a weaker yen helping. we have the news briefing next.

markets expect rises in 2008 in, but that could change under mr powell. who is he?yer used to be at the carlisle group. he is expected to maintain continuity. he is in favour of a low interest—rate environment and may continue with the of janet yellen, gradually increasing costs. it is interesting that he seems to be a supporter of deregulation. the white house does not want so many rules for businesses. he may support the white house. what is more interesting, he will be the first fed chair since walker if nominated to not have a phd in economics. his name has been floated around in the past few weeks. what has been the reaction? he was considered the front—runner for a number of weeks, as you said. betting websites have priced in expectation of him being nominated. we saw some gains in the us and asian trading market. thank you. social media has been grilled by policy makers. they were taken to task over why they did not identify and address the meddling of russia in the us presidential race by posting fake advertisements and stories. the three firms have an inter

mr. jerome powell. mr. on to say that he sees 2.5% growth in the immediate future, next year from the situation is coming together to raise interest rates in december. the market kind of likes what he's been saying because dow jones industrials are up nearly 90 points regardless of what mr. powell says, regardless of criticism from senator senator elizabeth warren paid anything to write about? >> this is a fairly predictable change. she set up to play in jay powell have to thread the needle because a regulator after all. >> they have to play the game, but i don't think anybody believes the volcker rule and its full capacity is done anything except weaken the banking system. tweets are necessary. stuart: tweets is different from radical reform. the dallas north 84 points. that is where we stand as of right now. a couple individual stocks for you. fast food chain arby's going to buy buffalo wild wings. worse to .9 billion. they will pay $157 per share cash. buffalo wild wings at 155 up 6%. look at this. can p

mr. powell we're seeing the translation effect on this side of the atlantic as well >>> the nominee for federal reserve chair, jay powell, he also talked about monetary policy he hinted at but stopped short of confirming a december rate hike in his senate confirmation hearing. powell essentially assured senators the status quo is likely to remain presuming he is confirmed to take over from janet yellen steve liesman sends this report. >> reporter: the more the fed chairman nominee jay powell spoke, it seemed the more the market liked what it heard the fed governor appointed by trump to replace janet yellen spoke about his views on monetary policy and bank regulation what did he say? well, the first thing he did was dance around the minefield of the current tax bill before congress that's one area that could derail the confirmation. here's what democra democratic r asked him about the 1 trillion bill for the new tax cut >> i think our responsibility is to carry out the mandate you have given us, which is to maintain stable prices and -- >> we rely on you for data all the time i respectfully don'

mr. powell and the tax plan in a second. but jim mentioned the new york terror attack so cnn has this new video. gut wrenching to watch here. shows the aftermath from the suspect's crash into a school bus. here it is. >> stuck in here. stuck behind it. >> are you okay? >> oh, my god, oh, my god. hey, can you call 911? oh, my god. >> oh, my god. okay. i need an ambulance right here. right here. the guy t-boned. >> i am happy to report though despite the pictures that everyone inside that school bus was safely rescued. school officials say one child and one adult do remain in the hospital and recovering from surge rhythm as for the suspect, prosecutors say he was so devoted to isis that he asked to fly the group's flag in his hospital room because he was so proud of his deadly acts. they claim he had been planning this attack for a year. he has been charged with multiple federal offenses but didn't enter a plea during his first court appearance. meantime new jersey neighbors are talking and they are telling cnn exactly what th

mr. powell was to do anything like that, as well.et onea while, you do or two fed members lower down the chain may be a bit on the extreme, but for the chairman to be so is unlikely. guy: folk are raised interest rates to 15%. he was followed a few years ago by ben bernanke who did the opposite. monetaryaries of policy by those two gentleman got considered -- extended quite considerably. history will be the making of this. we don't know what history will throw up. market's collapse, how would he react to those kinds of things? mark: you make a good point there. the thing they have in common is they both inherited crises. volcker inherited a huge inflation crisis, bernanke. part of the financial crisis. if mr. powell found himself in a deep crisis, he'll really find out what he is made of. he will probably have to make things up on the fly. we saw how well bernanke and his colleagues came up with new policies and powell could get the same situation. read the in -- intellectual underpinnings they provide, but the market is pretty much

mr. chairman and thank you for being here, governor powell. i want to start my comments by echoing the ranking member's comments on janet yellen i think she's done an incredible job in a very difficult situation when she came onboard, and she needs to be recognized for that governor powell, i appreciate you being here today i guess the debt is about $20 trillion could you give me any idea on what an additional $2 trillion would impact, how that would impact the economy, another $2 trillion in debt >> holding all else equal? >> yep >> well, you'd have higher interest costs, obviously. if you hold all else equal, you have higher interest costs and either taxes will have to go up to pay for that, or you'll have even more debt, and that will crowd out private capital -- >> is there any numbers that you have on potential impact to the economy, the higher the debt goes, half a percent, quarter percent, full percent per trillion, do you know? >> i don't have that handy, no >> okay. the reason it's important is because about a third of our current deb

mr. powell euro dollar holding on to 11931. u.s. futures looking brighter.he dow jones seen up marginally to 4 points. s&p 500 little change to slightly higher. we saw another record close to the s&p and nasdaq last week much of that was supported by the retail sector after that blowout number for the black friday sales up by 18% when it comes to sales versus last year >> don't forget it's cyber monday. >> it is it continues that's it for today's show i'm carolyn ross >> "worldwide exchange" is coming up. >> see you bye-bye. is now a good time to refinance? yes! mortgage rates are historically low. the time to refinance your home is right now. get started at lendingtree.com. the only place you can compare up to five real offers, side by side, for free. our average customer can significantly lower their monthly bills. quick. beat the fed's next rate hike. do not miss this window. are you sure you have the best rate? it only takes 3 minutes to find out. go to lendingtree.com right now. we that's why at xfinityic. we've been working hard to simplify your experi

interested in food at last you must know i was in students and you didn't have much money published mr powell so i shall take you with me to market to find some life here is about dates from the one nine hundred sixty s. or so that's very colorful. thomas and i looked for a sketch when it wasn't. even a bit held us from the one nine hundred forty s. and here's the apron the first piece that rosalie sewed for me out of us house it's the color of the sun's out. a lot of people today think traditional franconian folk costumes the same. the last time they still focused humans was probably funeral attire all factions from protestant regions which traditionally used duck and colored fabrics especially for morning and talked to so. most of the post got me tailor makes our clothing and is very meticulous about details. to get something she finished to me as a different patterns to choose from as you can see differ according to the place where it came from growing or a seamstress came from some have that very many styles maybe with no flowers i was graphic design a job says embroidery made it possible

announcing the nomination of mr powell, who's an investment banker and current federal reserve governorump described him as strong, committed and smart. the decision needs to be confirmed by the us senate. more than 700 civilians died in "execution—style killings" by islamic state militants during the battle for the iraqi city of mosul, according to the un. the group also allegedly used citizens as human shields. the un says they must be held accountable and also called for an investigation into alleged violations by iraqi forces. women will have to wait 217 years before they earn as much as men and have equal representation in the workplace, according to new research. women are paid and achieve just over half as much as men in the workplace, according to the world economic forum, which reported an economic gap of 58% between the sexes. this trove of artworks which was hoarded by the son of hitler's art dealer have gone on public display at the museum of fine arts in switzerland. the collection had been in the hands of cornelius gurlitt, whose father, hildebrand, sold works that had bee

mr. powell, will he do that? r positive of jay powell is he understands regulation and is committed to efficient regulation, thinking about how you can have regulation which protects the system that does not impose too many economic costs on businesses. i also think we will probably get a continuation of this normalization process. if we had more of a macro economist they would be more likely to mess with what the fed is trying to do. i think you will see a continuation of the yellen said. it will require more than that -- the yellen said. it will require more than that. if you pass a tax bill with just one side voting for it, who is to say a few years down the other side will not push up corporate taxes and cut on something else? david: john bilton and david kelly, thank you both very much for being with us. the house gop tax bill sets a permanent 20% corporate tax rate. lisa shalett from morgan stanley joins us to discuss that. live from new york some of this is bloomberg. -- new york, this is bloomberg. ♪ ♪ jon

mr. powell on tuesday, according to another source by dow jones. the president had settled on mr. y however, the source to dow jones cautions that the president could change his mind. the president apparently plans to formally announce the decision thursday before he leaves for his trip to asia, which will occur on friday so according to dow jones, the white house has notified mr. powell that he will be the next head of the u.s. central bank. back to you. >> sue, thank you. michael, every hour seems to bring further evidence that this is definitely happening. i think the market has certainly made its peace with this seems like the least kind of disruptive choice in terms of the path of pop si so i do think, you know, the market is going to kind of check off this box and say we can live with this. >> all right we'll see tomorrow when we're supposed to get this announcement >>> meantime, can tesla turn things around after its latest earnings report? shares are still dropping after they release their latest results. >>> plus, shake shack shares popping after its earnings find out if i

mr. powell. what are your thoughts? sen. i am really disappointed that janet yellen was not renominated. since 1979, not to be renominated that happened. regardless of party, both directions. janet yellen made it clear she wants an economy that works for working families. jerome powell has been with her on a lot of that and that goes a long way with me. we have a hearing coming up. i will be asking hard questions. i will be asking hard questions and see what he has to say. janet yellen made it clear she wants an economy that works for working families. kevin: one final question in terms of perspective. you had a tax bill today. pauly, indictment over manafort and several others. a terrorist attack in new york city. put in perspective for me and our audience about where you are in terms of this week. sen. warren: this weekend every paycheck toit is paycheck families will make it in this economy. and whether this government is just working for those at the top, tangled up in its own politics or whether it is actually trying to

mr. powell has to deal with the inflation. where is the inflation?as to become his own man and can't say he's doing what janet yellen did because he'll have to tell us what framework he's using to try to decide the course of monetary policy if events change and can't keep saying we're data dependent. when we get a tax bill and it does end up being more productive than people think we'll get extra growth but his focus on slack which is what francine talked about earlier, how much slack is there in the economy and how inflationary will it be? that's the nut he'll have to convince the markets about. he'll have to tell the markets what framework am i using to calculate how much inflation will be for the extra growth and if there's a lot of enhancement and imprumpletes you might not get what they're saying you'll get. tom: do you gain rate cuts next year, have you given that up at the milken institute? william: there is a lot of interest for what our outlook is. certainly december is baked in but next year i don't think we'll get the full increment of thr

mr. powell? k this was the push for someone with significant well polished chops in the financial sector. jerome powell certainly has that in spades. that was one of steve mnuchin's priorities. as with the about the vice chair, if you are putting john taylor there, there is a potential conflicts between a low rate sky and a high rates guy. i don't think that is what is wanted and i think that may be john taylor as a spot at the fed, but might just be at the governor, but not as the vice chair. alix: what about the deficit the treasury has to fund and what does it do for powell on whether he keeps rates low or not? carl: absolutely. powell made some comments in january where he basically talked about boosting potential growth in the economy and that was the way to really get the high interest rates and that was his way of signaling that if trumpenomics is going to give us a growth boost him if it does not appear to just be a sugar high, but a sustainable growth, that the fed would not that withy sm

front of the cameras who has worked with and knows jerome powell, it's dennis lockheart, the former atlanta fed president. i know you guys overlapped, mr. lockheart, a couple of months, you know him, you know his thinking, what was your reaction that you heard that fox news confirmed it will be jerome powell? >> well, we overlapped for the better part of five years, so i worked closely with jay powell particularly the last two years i was in the federal reserve. this is an outstanding appointment from my perspective. i think he's highly qualified. he can do all aspects of the job. i couldn't be more delighted. liz: ward mccarthy is always with us, ward was the chief economist for the federal reserve at richmond. ward, people are wondering, how will this affect my money? and talk about mortgage rates. talk about home equity lines of credit, and excuse me if i interrupt you, it will mean they're coming out to speak. >> nota worry. people should relax, he is not going to change the interest rate environment especially. he's a moderate. he's a really smart guy. rates are going to be bleeding higher over the next few years, primarily becaus

mr. powell? sarah: i think people will want to see for powell stands.he luxury of the governor to stand behind andanke or yellen's views remain a moderate. they want to know if he is on the hawkish side or the dovish side? bully see more of the same that we saw under janet yellen? a longnomy is humming and things are going well. another thing they may want to see is if and when it turns around, what will he do in response to a crisis? shery: yellen going out on top. she is testifying on wednesday. sarah: this is one of the regular congressional testimonies that a fed chair is supposed to do a couple of times a year. this is not something that is very unusual. i think yellen might use it to symmetric legacy, talk about the progress the economy has made, and you may want to offer views about what to do about stubborn, sluggish inflation. she is really -- we have not had many surprises from her. is now that she will give up the chairmanship, whether she will be able to be unburdened by that said speak and give us a more like the love that --blunt the of bl

mr. powell said about this question of inflation missing the target, it's a mystery, and he said, i think what it gives us is the ability for us to be patient. is that a tiny hint along the lines of, maybe he's not quite as convinced as janet yellen, he's more willing to wait and see in 2018 if inflation doesn't start rising? stephen: i think he is leaving his options open, which he has done a good job of. he was usually very much hewing to the company line in terms of his views of monetary policy. because he is not very -- i think powell a littleo this agnostic when it comes to economic models and more willing to take the temperature of the basic economy. what you are seeing is, even though people are frustrated about inflation staying too low, at the same time, it feels like people on the committee are getting nervous about the unemployment rate, about the possibility of overshooting, and also about the possibility of an, overheating financial asset prices. you saw that from dallas fed president kaplan who i would argue is in the middle of the committee, maybe on the dovish side. he wro

mr. powell, will be holding the ball and be given the blame for it i may object one or two comments and youl see the over night feds fund rates to 100 to 150 rather than 75 to 100 base points that's my greatest fear. >> almost there. >> you are getting close to it you have moved the yield curve to wonderfully positively slope. >> all right, thank you all. dennis gartman, rebecca patterson and jeff rosenberg >> here is what's coming up, confuse of the tax bill? you are not alone. we talk to tax experts and home builders are getting hit hard on the bill of what's in it who are the winners and losers in housing we are counting down the reveal of the next chair federal reserve, we are just talking about it we'll talk a little bit more when "power lunch" comes back. >>> the gop is unveiling its plan giving a look at what stays and what goes. i l ylan mui >> reporter: it is going to be permanent. this tax bill establishes ways for repatrioted earnings and 12% for cash and 5% for all assets on the individual side, the top rate ils going to stay at 39.6%. it is only applying household that makes mo

mr. powell was the so-called strategically .mportant financial designation are you open to the adjustment a defining who the big banks are for the financial system? sen. brown: i am very much a part of that. i am not a sponsor of this bill, designationof sifi but because it backs up the most important tool, probably since dodd-frank, as a stress test. and d fast, the kinds of stress tests that make sure banks can withstand the downturn in the economy. i want to make sure those are in place. certainly, community banks do not need to do it.the banks under 100 billion do not need to but banks in that -- the banks in my state with three of those andonal banks in my state they have been generally pretty conservative and in the way they have run their banks. . admire their leaders i just want to make sure the stress test will stay in place in the right way and a regular enough. i prefer annual. banks are profitable now. i understand these roles cost banks money but i understand what happened 10 years ago and i do not blame those three in ohio happened. i know the fingers are pointed directly an

mr. powell, or mrs. yellen. we will discuss what kind of repercussions that has. from new york, this is bloomberg. ♪ ♪ afternoon. joining us is the former vice chair of the federal reserve system and rinse and professor. bill gross -- princeton professor. bill gross joins us in the next hour. jeffrey rosenberg here from julia from macro policy perspectives. because it is sort of a non-meeting we have the opportunity to go into the nation's growth, and the shock had all we will see the tax reform. dr. coronado, i suggest for jeff.of us, not you, not crystal clearer it is not 1986. bring up this chart. this is the debt to gdp. the green circle is 1986 and ronald reagan, the red is where we are. the backdrop of the new fed chair, for the leadership in washington is totally different for tax reform. julia: absolutely. it took years to put together the 1986 tax reform and a coalition of democrats and republicans, and a real sense they were broken things in the tax code. by the way, we are highly indebted and staring at a widening deficit just on --tom: jeff is the perf

mr. powell said he supports, such as rewriting the volcker rule. said the case is coming together for a dose rate increase -- december rate increase. prediction gdp in 2017 will finish somewhere around 2.5%, plus or minus a few points. 2018 gdp prediction will be anywhere between two and 2.5% but that could fluctuate. he says wages are not signaling the tightening of the labor market. he said there are no, none, too big to fail banks. he was grilled by sherrod brown, ranking democrat from ohio, impact of tax reform on the economy. here is the exchange. >> are you telling me the fed is not modeled any of this, any of the tax bill in these kind of tax cuts, what it will do to economic growth? >> senator, of course we're monitoring these discussions but it remains unclear, exactly what will pass. >> of course we rely on you for data all the time. >> respectfully senator, i don't think you rely on us to score fiscal proposals. that is not really our role and we, i don't have a forecast for you on that today. reporter: so the hearing is concluded. there

mr. powell has consistently voted with ms. yellen slowly raise interest rates and fellow assets following the recession. colleagues consider him a centrist and pragmatist. the president announced the choice in the rose garden earlier today. pres. trump: thank you very much. please. i am pleased to welcome members of the cabinet, members of congress and distinguished guests to the white house rose garden this

mr. powell will be dealing with when he takes over >> i think that's a good chance when you consider allesses out there and various parts of the markets, whether it's commercial real estate or cni loans on commercial bank balance sheets, credit cards, subprime autos it's not the residential mortgage market, but one reason why the fed is raising interest rates, it's not because of core inflation. maybe some folks are concerned about what wages will do because of a 4.2% unemployment rate. the fed has been talking more and more about excesses in the financial markets. it will be interesting to see what its cadence will be in terms of raises interest rates and flattening the yield curve further than it has. my sense is that he will be facing quite a few challenges. everybody is focused on the extent to which we will see tax cuts people call it fax reform. it's tax relief at a time when several people in the fed are concerned that we hit the wall in the labor market. to me, the el vant in the room is fed's reaction function at a time when we have a 4.2% unemployment rate. it will be interesti

mr. powell's likely nomination. david: brian, pick occupy that. he reporting seems to indicate it's going to be powell, does that tls anything about the other seats and where the president may be heading overall with the fed? brian: i think that's actually the key point. many of my brothers and sisters at the b.m.o. talk about powell, but what happens if the voting members change, if he anoints different voters and what that looks like in terms of the other seats, number one. number two, it's really interesting on how this is becoming less and less and less hawkish and more and more and more dovish, which from a common sense and analytical perspective, makes all the sense in the world with respect to what's happening in terms of the world and growth and earnings and the like. so continuation is the key thing. but change is really important with respect to how they manage in terms of rising interest rates from herement don't be surprised if powell or yellen. david: that would be news. lisa: that would be news. brian, there was a story on the bloombe

mr. powell and the arrival of a tax bill. here in the united states, stocks also opened at historic highs. it helps tech had a monstrous month in okay. s&p up 2.3% october. it's all lopsided gains, though. technology was up nearly 8% and it's worse than that really five stocks are most of the gain, facebook, amazon, apple, google, microsoft accounted for half of the 2.3% gain without these five stocks, s&p would only be up about 1%. sarah, that's the amazing thing about market cap weighted indexes. when the biggest names all of a sudden just move together, they move all of the indexes along. without them s&p would only be up about 1%. sarah, back to you. >> that helps explain it bob, thank you for more on the markets, let's bring in our own mike santoli. starting off november after the best month for stocks since back in february and it kicks off with another bang here. >> interesting there's first of the month effect in some months. this is not exactly like some sort of energetic rush of greedy buying, just kind of that mark

mr. powell.ut marvin good friend, he's little bit chastened with the yellen tenure, but he also likes -- what does a good friend bring to the table? the fed as an institution has been much less of a democracy than the bank of england policy committee. the chairman decides what to do. way theast that's the firms have worked. it's not about to turn into kind of one person, one vote situation. have ace that they diversity of opinions across the spectrum. you hear anybody, you say that is dovish, but they are always dovish. i think it is ok, it's good to see that the committee is broadening out. anna: previously talking about andfeds they'll your pegging progress to some sort of rule. how does that sit with the other members of the fed, liking a rule-based approach? we will not see much more that, from what you have said. laurence: janet yellen made a defense of flexibility. the is the benefit to institution of boxing yourself in? the flexibility stays. failureuse words like much more when you are no

mr. powell had to say yesterday, matt. king of jay powell, let's talk about the fed chair nominee right now. dovish side to lawmakers at yesterday's confirmation hearing. he told the senate banking committee that the case for raising rates at december's policy meeting is strengthening. will say, senator, the case for raising interest rates at our next meeting is coming together. we don't see wages signaling any tightening -- any tightness in the labor market. there is no sense of an overheating economy or tight labor market. growth is strong and appear to picked up. it is time for us to be normalizing interest rates and the size of the balance sheet as well. guy: senators quiz powell -- q uizzed powell about bitcoin. >> there is the question that valuations have really gone up quite a lot in the last year or so. i don't have a view on the appropriate level of the evaluation of course. standpoint, cryptocurrencies was something we monitor closely. we look at blockchain. words.eat michael spencer is the ceo of next group and

mr. powell is inheriting the withdrawal of monetary accommodation, shrinking the balance sheet. the fed, it is unclear what impact that have. tom: the amateur reports -- we have a remarkable have. quiet which rosenbergjeff study at black rock. do we have any understanding how ven a-phd chairman acts given vix of 30 or 40? michael: the good news is he is from wall street. he can probably be the calm voice you are looking for when something happens. what policies does he adopt? show thisill throw throughout the day. i went back to powell's economic club of the u.s. speech. can you bring up the powell speech? this is the economic club in new york speech. this is the way the guy talks. my baseline expectation, i would view it as appropriate. staff. to the phd the next slide shows. at the bottom he crushes mike mckee and myself. some commentators predicted have not come to pass. this is the language of this guy? you would have to sit there with a textual analysis of what he says. there is a tradition of intentional office duration when you're delivering these speeches. tom: it is int

because it‘s very close to the kinds of things that we‘ve heard from the current chair, whom mr powelllarities between the two in terms of what they think the direction of the fed is going to be going forward that‘s really good news for the financial markets because it really signals a lot of stability going forward. we talk often about interest rate rises or speculation around interest rate rises in the us. why are they so important to the notjust rises in the us. why are they so important to the not just the rises in the us. why are they so important to the notjust the us economy, but actually the global economy, but actually the global economy sf so much of what happening on the global economy actually happens in us dollars. when people wa nt to happens in us dollars. when people want to make money, they come to the united states. they will trade their companies in the united states if they want to raise capital. a lot of what happens is done so in us currency. also, what happens with the us currency in terms of interest rates also has an influence on interest rates all around the w

mr. powell. low productivity is the biggest reason we seeing depressed wages.comments about whether tax reform would boost that, but this is something he is keeping an eye on. also on the economy and monetary policy, he believes the fed is very close to its mandate of the full employment and price the policy is currently accommodative, so it is appropriate to gradually raise the fed funds rate. below target inflation allows patience. that is why people are talking about him as janet yellen continuity. looking forward, he thinks the neutral rate may be lower than it needs to be. thanys it could be lower 2% or 3%, which would have important implications. the impact of balance sheet tapering, he is not worried about it. he says the fed will on to that -- will respond to that if it has to. he opposes will-based policymaking. some people talked about john taylor as a possible vice chair. they would not see eye to eye on this. and then he supports the floor system. the current way of doing things instead of going back to the way of just setting a fed funds target. he

mr. powell. i don't think there will be any big changes in the short run.en: the yen will not be a contentious issue for donald trump, it will be around 170? -- 117? >> there is a big depreciation down to 125, i think that he would say something about the foreign exchange rate. now that we are in postelection with shinzo abe having more of a mandate, we monetary policy, but perhaps the boj will clarify its exit strategy, whatever that might be, ahead of the replacement for the end of kuroda's term. the euro is falling, and japan is lagging behind. --hink the timing [indiscernible] have to show some idea of will be coming. before ae a long time negative interest rate. stephen: last question, as shinzo abe puts ford in his cabinet, the new asked budget, probably to pay for some of these social issues in japan he campaigned on, he also longer-term down the road once to change the constitution, wants to bolster the self-defense forces. what is the appetite in japan for the added cost and risk of a strengthened and a larger military? >> i think most of the japan

mr. powell really said maybe the level is about where it ought to be or maybe a little lower are you encouraged and what would a looser regulatory regime mean for you how would it help you? >> i think the last eight years have ban compounding regulatory set of expansions. some of them going off of unplanned or unknown events, to be fair. bringing those back with a view of making them more efficient. our ccar commission is 20,000 pages. we run a simple business model >> ccar being the stress test? the feds. >> right we would do that anyway but not at 15,000 or 20,000 pages. wouldn't have quite the army of people decked against it that we have today, and that would allow us to employ more resource into making more loans. same with our capital. going through a one-year test versus changes is circumstances over the course of the year, employ more capital loans. >> i look at regulation and don't spend my time the way you do how many regulators do you have? >> we have -- >> fed, state, you've got comptroller currency. >> ftec -- >> every day, right? >> we do. >> they live with you? >> multiple teams

mr. chairman thank you, governor powell, for your service as you mentioned in your introductory statementate one is maximum employment, but right now, we seem to be doing fairly well. your comments on where we are with respect to maximum employment >> maximum employment is indeed our statutory goal and i guess the thing i would say at the beginning is it's kind of an imprecise thing you can't look at one particular measure of what that is. so we look at a range of things. i think, for example, 4.1% unemployment is at or around or even below many estimates of the natural rate of unemployment that's one data point. there are other dimensions, though for example, labor force participation really matters in particularly, labor force participation by prime age workers, particularly prime age males. and that is the one measure i think that stands out now as suggesting there may be more slack, more people that can come back to work a wide range of other indicators suggest that we're at or near or in the neighborhood of full employment we really can't be more precise than that. the other was wage

jerome powell: there are more ways to support activity and investment is one of those. hollen: thank you mr. chairman. powell,lations, esther on your nomination. both your immediate predecessors at the fed, they repeatedly testified before congressional concernes about their about the impact of the rising debt. bernankehat chairman told the committee in june of 2012. he said large deficits and debt over long periods of time raise interest rates above where they would be and crowd out private investment. they also may involve borrowing from foreign lenders, which is a drain on the u.s. income. do you agree with that statement? jerome powell: yes i do. whator van hollen: this is chair yellen said this year, expressing her concerns about rising debt. she said current spending will lead to a unsustainable debt situation, with rising interest rates and declining investment in the united states that will harm productivity growth and living standards. do you agree? jerome powell: i do. hollen: if we increased the national debt, we will make those problems even worse. the long-term debt impact harm

mr. powell gives if and when the economy begins faster growth >> i agree. >> i don't want them to snuff it out. that's all. >> meanwhile, victoria, you're with crossmart global investments. we stand at a time when our fed is starting the tightening process. japan and europe are muddling along right now even though their stock markets are on fire. the nikkei and especially the german dax are at all-time highs. where do you see the better opportunity, especially with this change in leadership at the federal reserve? >> well, i mean, i think a lot of it similar to what we saw here if you look over the past two years, the fed was moving more based on what asset prices were doing than what inflation was doing. i think we're seeing that some over in europe, some in japan, they're starting to have assets climb as well. no, they're not raising rates but they're definitely starting to taper we see that with bank of england this morning here they gave outlook that was not very promising, but yet they went ahead and raised rates. kind of similar to our one and done that we did in 2015 and in 2016 so

mr. powell become the next year after her resignation, the federal reserve board will only have three out of seven positions filled. i understand the president must nominate and the senate approved each of these appointees in both parties or culprits in the gridlock. can you give us examples of how the federal reserve does not function up to the lake without a full board of governors? >> i do think it is important a number of governors serving on the board increase and ideally it would be at full strength at seven. certainly my colleagues and i would welcome additional appointments to the board. in fact, i don't think there has been any significant amount of time, perhaps not ever the board has operated with only three members that is a very very difficult situation. let me say, it does not stop the federal reserve and liberations benefit from having more individuals with a range of views and of course in the various operational and oversight responsibilities that we have disabled to carry out its key work even with the diminished board. >> just lastly, do you have any reform as it relate

mr. powell become the next chair after your resignation, the federal reserve board will only have three out of seven positions filled. i understand that the president must nominate and the senate must approve each of those appointee, and that both parties are culprits in the gridlock there can you give us examples of how the federal reserve does not function optimally or efficiently without a full board of governors? >> well, i do think it's important that the number of governors serving on the board increase. and ideally it would be at full-strength at seven. certainly my colleagues and i would welcome additional appointments to the board. in fact i don't think there has been any significant amount of time, perhaps not ever that the board has operated with three, only three members. that is very rare and difficult situation. but let me say it does not stop the federal reserve from carrying out its mandated activities. and while our deliberations benefit from having more individuals with a range of view, sand of course extra pairs of hands to help manage the various operational and oversigh

mr. powell, okay and the tax cuts on the supply side generate growth without inflation. ell gets that it's a home run. >> i will quickly conclude the conversation, the next time i have a sick day, larry, you come in and be the economics reporter because it's exactly my opinion. >> you're right. we've been very close. >> we have to leave it there thanks i appreciate it. >> senior, senior economics reporter >> truly senior. >> not that senior >> colorful, not beige >> the markets, the dow and the s&p 500 earlier set record highs again, but the nasdaq seeing its biggest drop in three months today lower by more than 1%. is that a red flag is it a sign of more weakness to come in among the broader markets jason ware is with aci financial and james norman is with part of legg mason. good to have you here. what do you make of this diversion of what we call the industrial average even though it's got a lot of tech in it, but also the tech stocks which have been the market leaders james, is this a signal that we'll see broader weakness in the markets in days to come or is this jus